Document:

EXECUTION
VERSION

    

    Exhibit
4.103

     

    
      
        

        

      

       

      Note
and Warrant Purchase Agreement

    

     

    Dated
March 18, 2009

     

    among

     

    KongZhong
Corporation,

     

    Leilei
Wang

     

    and

     

    Nokia
Growth Partners II, L.P.

     

    
      

      

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    TABLE
OF CONTENTS

     

    
      
        
          
            
              
                	 
      	 
      	 	
                        Page

                      
	 	 	 	 
	
                        Recitals

                      	 	
                        1

                      
	 
      	
                        Article
      I

                      	 	 
      
	 
      	 
      	 	 
      
	 
      	
                        Purchase;
      Closing

                      	 	 
      
	 
      	 
      	 	 
      
	
                        1.1

                      	
                        Purchase

                      	 	
                        1

                      
	
                        1.2

                      	
                        Closing

                      	 	
                        1

                      
	
                        1.3

                      	
                        Interpretation

                      	 	
                        2

                      
	 
      	 
      	 	 
      
	 
      	
                        Article
      II

                      	 	
                          

                      
	 
      	 
      	 	 
      
	 
      	
                        Representations
      and Warranties

                      	 	 
      
	 
      	 
      	 	 
      
	
                        2.1

                      	
                        Disclosure

                      	 	
                        3

                      
	
                        2.2

                      	
                        Representations
      and Warranties of the Company

                      	 	
                        4

                      
	
                        2.3

                      	
                        Representations
      and Warranties of the Investor

                      	 	
                        7

                      
	 
      	 
      	 	 
      
	 
      	
                        Article
      III

                      	 	 
      
	 
      	 
      	 	 
      
	 
      	
                        Covenants

                      	 	 
      
	 
      	 
      	 	 
      
	
                        3.1

                      	
                        Certain
      Actions by the Company

                      	 	
                        9

                      
	
                        3.2

                      	
                        SEC
      Reports; NASDAQ Listing

                      	 	
                        10

                      
	
                        3.3

                      	
                        Sales
      of Ordinary Shares by the Sponsor

                      	 	
                        10

                      
	 
      	 
      	 	 
      
	 
      	
                        Article
      IV

                      	 	 
      
	 
      	 
      	 	 
      
	 
      	
                        Additional
      Agreements

                      	 	 
      
	 
      	 
      	 	 
      
	
                        4.1

                      	
                        Commercially
      Reasonable Efforts

                      	 	
                        10

                      
	
                        4.2

                      	
                        Conversion
      of Ordinary Shares

                      	 	
                        10

                      
	
                        4.3

                      	
                        Expenses

                      	 	
                        10

                      
	
                        4.4

                      	
                        Board
      Observer Rights

                      	 	
                        10

                      
	
                        4.5

                      	
                        Transfers

                      	 	
                        11

                      
	
                        4.6

                      	
                        Form
      D and Blue Sky

                      	 	
                        12

                      
	
                        4.7

                      	
                        CFC

                      	 	
                        12

                      
	
                        4.8

                      	
                        Public
      Announcements

                      	 	
                        12

                      
	 
      	 
      	 	 
      
	 
      	
                        Article
      V

                      	 	 
      
	 
      	 
      	 	 
      
	 
      	
                        Miscellaneous

                      	 	 
      
	 
      	 
      	 	 
      
	
                        5.1

                      	
                        Termination

                      	 	
                        12

                      
	
                        5.2

                      	
                        Amendment

                      	 	
                        13

                      
	
                        5.3

                      	
                        Waiver
      of Conditions

                      	 	
                        13

                      
	
                        5.4

                      	
                        Counterparts
      and Facsimile

                      	 	
                        13

                      

              

            

          

        

      

    

    

    
      
        
           

        

        
          - i
-

          
            

          

        

        
           

        

      

    

    

    
      
        
          
            	
                    5.5

                  	
                    Governing
      Law; Submission to Jurisdiction, Etc.

                  	 	
                    13

                  
	
                    5.6

                  	
                    Notices

                  	 	
                    14

                  
	
                    5.7

                  	
                    Entire
      Agreement, Etc.

                  	 	
                    15

                  
	
                    5.8

                  	
                    Definitions
      of “Subsidiary”, “affiliate” and “person”

                  	 	
                    15

                  
	
                    5.9

                  	
                    Assignment

                  	 	
                    15

                  
	
                    5.10

                  	
                    Severability

                  	 	
                    15

                  
	
                    5.11

                  	
                    No
      Third Party Beneficiaries

                  	 	
                    15

                  
	
                    5.12

                  	
                    Further
      Assurances

                  	 	
                    15

                  

          

        

      

    

     

    
      
        
           

        

        
          - ii
-

          
            

          

        

        
           

        

      

    

     

    LIST
OF ANNEXES

     

    
      
        	
                ANNEX
      A:

              	
                FORM
      OF NOTE

              
	 
      	 
      
	
                ANNEX
      B:

              	
                FORM
      OF WARRANT

              
	 
      	 
      
	
                ANNEX
      C:

              	
                FORM
      OF REGISTRATION RIGHTS AGREEMENT

              
	 
      	 
      
	
                ANNEX
      D:

              	
                FORM
      OF LEGAL OPINION OF COMPANY’S CAYMAN ISLANDS
  COUNSEL

              

      

    

    

    
      
        
           

        

        
          - iii
-

          
            

          

        

        
           

        

      

    

     

    INDEX
OF DEFINED TERMS

    
      
        
          
            
              
                	
                        Term

                      	 	
                        
                          Location of

                          Definition

                        

                      
	
                        ADSs

                      	 	
                        2.1(a)

                      
	
                        affiliate

                      	 	
                        5.8(b)

                      
	
                        Agreement

                      	 	
                        Preamble

                      
	
                        Bankruptcy
      Exceptions

                      	 	
                        2.2(e)(i)

                      
	
                        Beneficial
      Ownership; Beneficial Owner; Beneficially Own

                      	 	
                        2.3(c)

                      
	
                        Board

                      	 	
                        3.1(d)

                      
	
                        Business
      Day

                      	 	
                        1.3

                      
	
                        Capitalization
      Date

                      	 	
                        2.2(b)

                      
	
                        CFC

                      	 	
                        2.2(p)

                      
	
                        Closing

                      	 	
                        1.2(a)

                      
	
                        Closing
      Date

                      	 	
                        1.2(a)

                      
	
                        Code

                      	 	
                        2.2(p)

                      
	
                        Commission

                      	 	
                        2.1(b)

                      
	
                        Company

                      	 	
                        Preamble

                      
	
                        Company’s
      Knowledge

                      	 	
                        2.2(j)

                      
	
                        Confidential
      Information

                      	 	
                        4.4(c)

                      
	
                        Designated
      Courts

                      	 	
                        5.5(c)

                      
	
                        Exchange
      Act

                      	 	
                        2.1(b)

                      
	
                        GAAP

                      	 	
                        2.1(a)

                      
	
                        Governmental
      Entities

                      	 	
                        1.2(c)

                      
	
                        Hedging
      Transaction

                      	 	
                        4.5(c)

                      
	
                        HKIAC

                      	 	
                        5.5(b)

                      
	
                        Investor

                      	 	
                        Preamble

                      
	
                        Investor
      Material Adverse Effect

                      	 	
                        2.3(b)(ii)

                      
	
                        Material
      Adverse Effect

                      	 	
                        2.1(a)

                      
	
                        Note

                      	 	
                        Recital
      A

                      
	
                        Note
      Shares

                      	 	
                        2.2(c)

                      
	
                        Observer

                      	 	
                        4.4(a)

                      
	
                        Observer
      Representatives

                      	 	
                        4.4(c)

                      
	
                        Ordinary
      Shares

                      	 	
                        Recital
      A

                      
	
                        Permitted
      Transferee

                      	 	
                        4.5(b)

                      
	
                        person

                      	 	
                        5.8(c)

                      
	
                        Previously
      Disclosed

                      	 	
                        2.1(b)

                      
	
                        Purchase

                      	 	
                        1.1

                      
	
                        Purchased
      Securities

                      	 	
                        Recital
      A

                      
	
                        Registration
      Rights Agreement

                      	 	
                        1.2(e)(iv)

                      
	
                        Related
      Party Transaction

                      	 	
                        3.1(c)

                      
	
                        SEC
      Reports

                      	 	
                        2.1(b)

                      
	
                        Securities
      Act

                      	 	
                        Recital
      C

                      
	
                        Sponsor

                      	 	
                        Preamble

                      
	
                        Subsidiary

                      	 	
                        5.8(a)

                      
	
                        Transaction
      Documents

                      	 	
                        2.1(c)

                      
	
                        Transfer

                      	 	
                        4.5(a)

                      
	
                        Warrant

                      	 	
                        Recital
      A

                      
	
                        Warrant
      Shares

                      	 	
                        2.2(d)

                      

              

            

          

        

      

    

    

    
      
        
           

        

        
          - iv
-

          
            

          

        

        
           

        

      

    

    

    Note and
Warrant Purchase Agreement, dated March 18, 2009 (this “Agreement”), among
KongZhong Corporation, an exempted limited liability company incorporated under
the laws of the Cayman Islands (the “Company”), Leilei
Wang, Chief Executive Officer of the Company (the “Sponsor”), and Nokia
Growth Partners II, L.P., a Delaware limited partnership (the “Investor”).

     

    Recitals:

     

    WHEREAS:

     

    A.          The
Company desires to issue and sell to the Investor (i) US$6,775,400
aggregate principal amount of the Company’s Convertible Senior Note in the form
set forth in Annex A hereto (the “Note”) and (ii) a
warrant to purchase up to 80,000,000 ordinary shares of the Company, par value
US$0.0000005 per share (“Ordinary Shares”)
(such warrant, the “Warrant” and,
together with the Note, the “Purchased
Securities”);

     

    B.           the
Investor desires to purchase from the Company the Purchased Securities;
and

     

    C.           the
Purchased Securities will be offered and sold to the Investor without being
registered under the United States Securities Act of 1933, as amended (the
“Securities
Act”), in reliance upon exemptions from the registration requirements
thereunder;

     

    NOW, THEREFORE, in
consideration of the premises, and of the representations, warranties, covenants
and agreements set forth herein, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

     

    Article
I

     

    Purchase;
Closing

     

    1.1      
  Purchase.  On
the terms and subject to the conditions set forth in this Agreement, the Company
agrees to sell to the Investor, and the Investor agrees to purchase from the
Company, at the Closing (as hereinafter defined), the Purchased Securities for
an aggregate purchase price of  US$6,775,400 (the “Purchase”).

     

    1.2        
Closing.

     

    (a)          On
the terms and subject to the conditions set forth in this Agreement, the closing
of the Purchase (the “Closing”) will take
place at the offices of Sullivan & Cromwell LLP, Suite 501, Tower 1, China
World Trade Center, One Jian Guo Men Wai Avenue, Beijing 100004, People’s
Republic of China, at 9:30 a.m., Beijing time, on March 18, 2009 or as soon
as practicable thereafter, or at such other place, time and date as shall be
agreed between the Company and the Investor.  The time and date on
which the Closing occurs is referred to in this Agreement as the “Closing
Date”.

     

    (b)         Subject
to the fulfillment or waiver of the conditions to the Closing in this Section
1.2, at the Closing, the Company will deliver the Note and the Warrant, in each
case as evidenced by one or more certificates dated the Closing Date and bearing
appropriate legends as hereinafter provided for, in exchange for payment in full
of the aggregate purchase price therefor by wire transfer of immediately
available funds to a bank account that has been designated by the Company at
least three Business Days prior to the Closing Date.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (c)          The
respective obligations of each of the Investor and the Company to consummate the
Purchase are subject to the fulfillment (or waiver by the Investor and the
Company, as applicable) prior to the Closing of the condition that (i) any
approvals or authorizations of all United States of America, People’s Republic
of China and other national, state, provincial, local and other governmental or
regulatory authorities (collectively, “Governmental
Entities”), the absence of which would reasonably be expected to make the
Purchase unlawful, shall have been obtained or made in form and substance
reasonably satisfactory to each party and shall be in full force and effect and
(ii) no provision of any applicable United States or other law and no judgment,
injunction, order or decree of any Governmental Entity shall prohibit the
purchase and sale of the Purchased Securities.

     

    (d)         The
obligation of the Company to consummate the Closing is also subject to the
fulfillment (or waiver by the Company) at or prior to the Closing of each of the
following conditions:

     

    (i)           (A) the
representations and warranties of the Investor set forth in this Agreement shall
be true and correct as though made on and as of the Closing Date (other than
representations and warranties that by their terms speak as of another date,
which representations and warranties shall be true and correct as of such date),
except to the extent that the failure of such representations and warranties to
be so true and correct, individually or in the aggregate, does not have and
would not be reasonably likely to have an Investor Material Adverse Effect and
(B) the Investor shall have performed in all material respects all
obligations required to be performed by it under this Agreement at or prior to
the Closing; and

     

    (ii)          the
Investor shall have duly executed and delivered to the Company a certificate,
certifying that the Investor is an “accredited investor” as that term is defined
in Rule 501 of Regulation D under the Securities Act.

     

    (e)          The
obligation of the Investor to consummate the Closing is also subject to the
fulfillment (or waiver by the Investor) at or prior to the Closing of each of
the following conditions:

     

    (i)           (A) the
representations and warranties of the Company set forth in this Agreement shall
be true and correct as though made on and as of the Closing Date (other than
representations and warranties that by their terms speak as of another date,
which representations and warranties shall be true and correct as of such date),
except to the extent that the failure of such representations and warranties to
be so true and correct, individually or in the aggregate, does not have and
would not be reasonably likely to have a Material Adverse Effect and
(B) the Company shall have performed in all material respects all
obligations required to be performed by it under this Agreement at or prior to
the Closing;

     

    (ii)          the
Company shall have duly executed and delivered the Note in substantially the
form attached hereto as Annex A to the
Investor or its designee(s);

     

    (iii)         the
Company shall have duly executed and delivered the Warrant in substantially the
form attached hereto as Annex B to the
Investor or its designee(s);

     

    (iv)        the
Company shall have duly executed and delivered to the Investor or its
designee(s) a Registration Rights Agreement (the “Registration Rights
Agreement”) in substantially the form attached hereto as Annex C;
and

     

    (v)         the
Company shall have delivered to the Investor an opinion, dated as of the Closing
Date, of Cayman Islands counsel for the Company as to matters under Cayman
Islands law in substantially the form attached hereto as Annex D.

    

    
      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

    

    

    1.3        
Interpretation.  When
a reference is made in this Agreement to “Recitals”, “Articles”, “Sections” or
“Annexes”, such reference shall be to a Recital, Article or Section of, or Annex
to, this Agreement unless otherwise indicated.  The terms defined in
the singular have a comparable meaning when used in the plural, and vice
versa.  References to “herein”, “hereof”, “hereunder” and the like
refer to this Agreement as a whole and not to any particular section or
provision, unless the context requires otherwise. The table of contents and
headings contained in this Agreement are for reference purposes only and are not
part of this Agreement.  Whenever the words “include”, “includes” or
“including” are used in this Agreement, they shall be deemed followed by the
words “without limitation”.  No rule of construction against the
draftsperson shall be applied in connection with the interpretation or
enforcement of this Agreement, as this Agreement is the product of negotiation
between sophisticated parties advised by counsel.  All references to
“US$” mean the lawful currency of the United States of
America.  Except as expressly stated in this Agreement, all references
to any statute, rule or regulation are to the statute, rule or regulation as
amended, modified, supplemented or replaced from time to time (and, in the case
of any statute, include any rules and regulations promulgated under such
statute) and to any section of any statute, rule or regulation include any
successor to the section.  References to a “Business Day” shall
mean any day except Saturday, Sunday and any day which shall be a legal holiday
or a day on which banking institutions in the City of New York, New York, United
States of America, or Beijing, People’s Republic of China generally are
authorized or required by law or other governmental actions to
close.

     

    Article
II

     

    Representations
and Warranties

     

    2.1   
     Disclosure.

     

    (a)          “Material Adverse
Effect” means a material adverse effect on (i) the business, results
of operation or financial condition of the Company and its consolidated
Subsidiaries taken as a whole; provided, however, that
Material Adverse Effect shall not be deemed to include the effects of
(A) any facts, circumstances, events, changes or occurrences generally
affecting businesses, industries and markets in which the Company or any of its
Subsidiaries operates (including, without limitation, changes generally in
prevailing interest rates, credit availability and liquidity, currency exchange
rates and price levels or trading volumes in the United States of America or
other markets), companies engaged in such businesses, industries or markets or
the economy, including effects on such businesses, industries, markets or
economy resulting from any regulatory or political conditions or developments,
or any outbreak or escalation of hostilities, declared or undeclared acts of war
or terrorism, (B) changes or proposed changes to generally accepted
accounting principles in the United States of America (“GAAP”) and/or changes or proposed
changes in International Financial Reporting Standards and/or other relevant
accounting standards, (C) changes or proposed changes in securities or
other laws of general applicability or related policies or interpretations of
Governmental Entities, (D) changes in the market price or trading volume of
the American Depositary Shares of the Company (the “ADSs”) or any other
equity, equity-related or debt securities of the Company, (E) the disclosure or
consummation of the transactions contemplated by the Transaction Documents or
(F) any litigation arising from allegations of a breach of fiduciary duty or
other violation of applicable laws relating to the Transaction Documents or the
transactions contemplated thereby; or (ii) the ability of the Company
timely to consummate the Purchase and the other transactions contemplated by the
Transaction Documents.

     

    (b)          “Previously Disclosed”
means information set forth or incorporated in the Company’s Annual Report on
Form 20-F for the fiscal year ended December 31, 2007 or its other reports
and forms filed with the United States Securities and Exchange Commission (the
“Commission”)
(such reports and forms, the “SEC Reports”) under
Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) after December 31, 2007
but prior to the date hereof.

    

    
      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

    

    

    (c)          Each
party acknowledges that it is not relying upon any representation or warranty
not set forth in the Transaction Documents.  The Investor acknowledges
that it has had an opportunity to conduct such review and analysis of the
business, assets, condition, operations and prospects of the Company and its
Subsidiaries, including an opportunity to ask such questions of management (for
which it has received such answers) and to review such information maintained by
the Company, in each case as the Investor considers sufficient for the purpose
of making the Purchase.  The Investor further acknowledges that it has
had such an opportunity to consult with its own counsel, financial and tax
advisors and other professional advisors as it believes is sufficient for
purposes of the Purchase.  For purposes of this Agreement, the term
“Transaction
Documents” refers collectively to this Agreement, the Note, the Warrant
and the Registration Rights Agreement, in each case, as amended, modified or
supplemented from time to time in accordance with their respective
terms.

     

    2.2   
     Representations and
Warranties of the Company.  Except as Previously Disclosed, the
Company represents and warrants to the Investor that as of the date
hereof:

     

    (a)          Organization, Authority and
Subsidiaries.  The Company has been duly incorporated and is
validly existing as a corporation in good standing under the laws of the Cayman
Islands, with corporate power and authority to own its properties and conduct
its business in all material respects as currently conducted, and, except as has
not had or would not be reasonably likely to have a Material Adverse Effect, has
been duly qualified as a foreign corporation for the transaction of business and
is in good standing under the laws of each other jurisdiction in which it owns
or leases properties, or conducts any business so as to require such
qualification.  Each Subsidiary of the Company has been duly organized
and is validly existing in good standing under the laws of its jurisdiction of
organization, except that Wukong Shentong Search Co., Ltd. and Anjian Xingye
Technology (Beijing) Company Limited are in the process of being dissolved and
liquidated.

     

    (b)         Capitalization.  The
authorized share capital of the Company consists of 1,000,000,000,000 Ordinary
Shares, of which, as of December 31, 2008 (the “Capitalization
Date”), 1,443,156,120 Ordinary Shares were issued and outstanding (it
being understood that the number of 1,443,156,120 includes
(i) 13,286,920 Ordinary Shares which the Company had agreed to repurchase
pursuant to its share repurchase program and were in the process of being
cancelled and of which such cancellation had not yet been reflected in
the Register of Members of the Company as of December 31, 2008, and
(ii) 13,321,960 Ordinary Shares held by Citi (Nominees) Limited as of
December 31, 2008 for future exercise of stock options and
vesting of restricted share units under the Company’s equity incentive
plans).  The issued and outstanding Ordinary Shares have been duly
authorized and are validly issued as fully paid and non-assessable (meaning that
no further sums are payable to the Company on such shares), and are not subject
to any preemptive rights under Cayman Islands law or the Memorandum and Articles
of Association of the Company.

     

    (c)          The Note and the Note
Shares.  The Note has been duly authorized and, when executed
and delivered as contemplated hereby, will constitute a valid and legally
binding obligation of the Company in accordance with their terms, and the
Ordinary Shares issuable upon conversion of the Note (the “Note Shares”) have
been duly authorized and when issued upon conversion of the Note in accordance
with the terms of the Note will be validly issued, fully paid and
non-assessable.

     

    (d)         The Warrant and the Warrant
Shares.  The Warrant has been duly authorized and, when
executed and delivered as contemplated hereby, will constitute a valid and
legally binding obligation of the Company in accordance with its terms, and the
Ordinary Shares issuable upon exercise of the Warrant (the “Warrant Shares”) have
been duly authorized and when issued upon exercise of the Warrant against
payment therefor in accordance with the terms of the Warrant will be validly
issued, fully paid and non-assessable.

     

    
      
        
        

      

      
        - 4
-

        
          

        

      

      
        
        

      

    

     

    (e)          Authorization,
Enforceability.

    

    (i)           The
Company has the corporate power and authority to execute and deliver this
Agreement and the other Transaction Documents and to carry out its obligations
hereunder and thereunder.  The execution, delivery and performance by
the Company of this Agreement and the other Transaction Documents to which it is
a party and the consummation of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate action on the part of the
Company, and no further approval or authorization is required on the part of the
Company in connection herewith and therewith.  This Agreement and the
other Transaction Documents are or will be valid and binding obligations of the
Company enforceable against the Company in accordance with their respective
terms, except as the same may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and general equitable principles, regardless of
whether such enforceability is considered in a proceeding at law or in equity
(“Bankruptcy
Exceptions”).

     

    (ii)         
The execution, delivery and performance by the Company of this Agreement and the
other Transaction Documents and the consummation of the transactions
contemplated hereby and thereby and compliance by the Company with any of the
provisions hereof and thereof, will not (i) violate, conflict with, or result in
a breach of any provision of, or constitute a default (or an event which, with
notice or lapse of time or both, would constitute a default) under, or result in
the termination of, or accelerate the performance required by, or result in a
right of termination or acceleration of, or result in the creation of, any lien,
security interest, charge or encumbrance upon any of the properties or assets of
the Company or any Subsidiary under any of the terms, conditions or provisions
of (A) its memorandum of association or articles of association, as amended
and restated, or (B) any note, bond, mortgage, indenture, deed of trust,
license, lease, agreement, contract or other instrument or obligation to which
the Company or any Subsidiary is a party or by which it or any Subsidiary may be
bound, or to which the Company or any Subsidiary or any of the properties or
assets of the Company or any Subsidiary may be subject, or (ii) subject to
compliance with the statutes and regulations referred to in the next paragraph,
violate any law, statute, rule or regulation or any judgment, ruling, order,
writ, injunction, business license, decree or other regulatory restriction
applicable to the Company or any Subsidiary or any of their respective
properties or assets except for those occurrences that, individually or in the
aggregate, have not had and would not be reasonably likely to have a Material
Adverse Effect.

     

    (iii)        Other
than the filing of any report on Form 6-K or Form D or annual report on Form
20-F required to be filed with the Commission and such as have been made or
obtained, no notice to, filing with, exemption or review by, or authorization,
consent or approval of, any Governmental Entity is required to be made or
obtained by the Company in connection with the consummation by the Company of
the Purchase except for any such notices, filings, exemptions reviews,
authorizations, consents and approvals the failure of which to be made or
obtained would not be reasonably likely to have a Material Adverse
Effect.

     

    (f)           Company Financial
Statements.

     

    (i)           The
consolidated financial statements of the Company and its consolidated
Subsidiaries included or incorporated by reference in the SEC Reports filed
prior to the Closing, present fairly in all material respects the consolidated
financial position of the Company and its consolidated Subsidiaries as of the
dates indicated therein and the consolidated results of their operations for the
periods specified therein; and such financial statements were prepared in
conformity with GAAP applied on a consistent basis (except as may be noted
therein).

     

    (ii)          Deloitte
Touche Tohmatsu CPA Ltd. is an independent registered public accounting firm of
the Company as required by the Exchange Act and the rules and regulations of the
Commission and the Public Company Accounting Oversight Board.

     

    (g)       
  No
Material Adverse Effect.  Since the most recent SEC Report, no
fact, circumstance, event, change, occurrence, condition or development has
occurred that, individually or in the aggregate, has had or would be reasonably
likely to have a Material Adverse Effect.

    

    
      
        
           

        

        
          - 5
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    (h)         Reports.

     

    (i)           Since
December 31, 2007, the Company has complied in all material respects with the
filing requirements of Sections 13(a) and 15(d) of the Exchange
Act.

     

    (ii)         
The SEC Reports filed by the Company prior to the Closing, when they became
effective or were filed with the Commission, as the case may be, conformed in
all material respects to the requirements of the Securities Act or the Exchange
Act, as applicable, and the rules and regulations of the Commission thereunder,
and none of such documents, when they became effective or were filed with the
Commission, contained an untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances in which they were made,
not misleading.

     

    (iii)         The
Company is in compliance with the applicable requirements of the Sarbanes-Oxley
Act of 2002 that are effective as of the date hereof.  The financial
statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and rules and regulations of
the Commission with respect thereto as in effect at the time of
filing.

     

    (i)           No General
Solicitation.  Neither the Company, nor any of its affiliates,
nor any person acting on its or their behalf, has engaged in any form of any
general solicitation or general advertising within the meaning of Rule 502(c) of
Regulation D under the Securities Act in connection with the offer and sale of
the Purchased Securities.

     

    (j)           No Material Misstatements;
No Violation.  To the Company's Knowledge, no representation or
warranty by the Company or its Subsidiaries in Section 2.2 of this Agreement
contains any untrue statement of a material fact or omits to state a material
fact necessary to make any statement in any such representation or warranty not
misleading.  “Company’s Knowledge”
means the actual knowledge, after due inquiry, of the Sponsor and Jay Chang,
Chief Financial Officer of the Company, as of the date hereof.  Except
as set forth in the SEC Reports, each of the Company and its Subsidiaries has
complied in all material respects with each, and is not in violation in any
material respect of any, applicable law, rule or regulation to which the Company
or any such Subsidiary or its respective business, operations, assets or
properties is or has been subject and no event has occurred and no circumstance
exists that constitutes a violation of, conflict with or failure on the part of
the Company or any of its Subsidiaries to comply with, any law, rule or
regulation, except for any such violations, conflicts or failures to comply that
individually or in the aggregate, have not had and would not be reasonably
likely to result in a Material Adverse Effect.

     

    (k)          Office of Foreign Assets
Control.  Neither the Company nor, to the Company’s Knowledge,
any director, officer, agent, employee or affiliate of the Company is currently
subject to any United States sanctions administered by the Office of Foreign
Assets Control of the United States Treasury Department.

     

    (l)           Foreign Corrupt
Practices.  Neither the Company, nor, to the Company’s
Knowledge, any director, officer, agent, employee or other Person acting on
behalf of the Company, in the course of actions for, or on behalf of, the
Company (i) is using any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expenses relating to political activity; (ii) is
making any direct or indirect unlawful payment to any foreign or domestic
government official or employee from corporate funds; (iii) is in violation of
any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or
(iv) is making any unlawful bribe, rebate, payoff, influence payment, kickback
or other unlawful payment to any foreign or domestic government official or
employee.

     

    (m)         Form F-3. The Company
is eligible to use Form F-3 to register securities under the Securities
Act.

    

    
      
        
           

        

        
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    (n)         NASDAQ. The Company
has satisfied the qualitative listing requirements for foreign private issuers
pursuant to Rule 4350(a) of the NASDAQ Marketplace Rules.  The Company
has not received any notice from the NASDAQ Global Select Market on which the
Company’s ADSs have been listed to the effect that the Company is not in
compliance with its listing or maintenance requirements.

     

    (o)         Investment
Company.  The Company is not, and is not an affiliate of, an
“investment company” or controlled by an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

     

    (p)         CFC
Representation.  The Company was not a “Controlled Foreign
Corporation” (“CFC”) as defined in
the United States Internal Revenue Code of 1986, as amended (the “Code”), for the tax
year ended December 31, 2008.

     

    2.3         Representations and
Warranties of the Investor.  The Investor hereby represents and
warrants to the Company that as of the date hereof:

     

    (a)          Organization.  The
Investor has been duly organized and is validly existing as a limited
partnership under the laws of Delaware.

     

    (b)          Authorization,
Enforceability.

     

    (i)           The
Investor has the power and authority, corporate or otherwise, to execute and
deliver this Agreement and the Registration Rights Agreement and to carry out
its obligations hereunder and thereunder.  The execution, delivery and
performance by the Investor of this Agreement and the Registration Rights
Agreement and the consummation of the transactions contemplated hereby and
thereby have been duly authorized by all necessary action on the part of the
Investor, and no further approval or authorization is required on the part of
the Investor or any other party for such authorization to be
effective.  This Agreement and the Registration Rights Agreement are
or will be valid and binding obligations of the Investor enforceable against the
Investor in accordance with their respective terms, except as the same may be
limited by Bankruptcy Exceptions.

     

    (ii)        
 The execution, delivery and performance by the Investor of this Agreement
and the Registration Rights Agreement and the consummation of the transactions
contemplated hereby and thereby and compliance by the Investor with any of the
provisions hereof and thereof, will not (i) violate, conflict with, or
result in a breach of any provision of, or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under,
or result in the termination of, or accelerate the performance required by, or
result in a right of termination or acceleration of, or result in the creation
of, any lien, security interest, charge or encumbrance upon any of the
properties or assets of such Investor under any of the terms, conditions or
provisions of (A) its organizational documents or (B) any note, bond,
mortgage, indenture, deed of trust, license, lease, agreement or other
instrument or obligation to which the Investor is a party or by which it may be
bound, or to which the Investor or any of the properties or assets of the
Investor may be subject, or (ii) subject to compliance with the statutes
and regulations referred to in the next paragraph, violate any statute, rule or
regulation or any judgment, ruling, order, writ, injunction or decree applicable
to the Investor or any of its properties or assets except for those occurrences
that, individually or in the aggregate, have not had and would not be reasonably
likely to have an Investor Material Adverse Effect.  “Investor Material Adverse
Effect” means a
material adverse effect on the ability of the Investor to consummate the
Purchase and the other transactions contemplated by the Transaction
Documents.

    

    
      
        
           

        

        
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    (iii)         Other
than such as have been made or obtained, no notice to, filing with, exemption or
review by, or authorization, consent or approval of, any Governmental Entity is
required to be made or obtained by the Investor in connection with the
consummation by the Investor of the Purchase except for any such notices,
filings, exemptions, reviews, authorizations, consents and approvals the failure
of which to make or obtain would not be reasonably likely to have an Investor
Material Adverse Effect.

     

    (c)          Ownership.  The
Investor is not the Beneficial Owner of (i) any Ordinary Share or (ii) any
securities or other instruments representing the right to acquire any Ordinary
Share.  The Investor does not have a formal or informal agreement,
arrangement or understanding with any person (other than the Company) to
acquire, dispose of or vote any securities of the Company.  “Beneficial Ownership”
shall be determined in accordance with Rules 13d-3 and 13d-5 under the Exchange
Act, including the provision that any member of a “group” shall be deemed to
have Beneficial Ownership of all securities Beneficially Owned by other members
of the group, and except that the exclusion in Rule 13d-3(d)(1)(i) for rights to
acquire securities that are not exercisable “within 60 days” shall not
apply.  “Beneficial Owner” and
“Beneficially
Own” shall have conforming definitions.

     

    (d)          Purchase for
Investment.  The Investor acknowledges that the Purchased
Securities, the Note Shares and the Warrant Shares have not been registered
under the Securities Act or under any state securities laws.  The
Investor (i) is acquiring the Purchased Securities pursuant to an exemption
from registration under the Securities Act solely for investment purposes for
its own account with no present intention to distribute them to any person in
violation of the Securities Act or any applicable state securities laws,
(ii) will not sell or otherwise dispose of any of the Purchased Securities,
the Note Shares or the Warrant Shares, except in compliance with the
registration requirements or exemption provisions of the Securities Act and any
applicable state securities laws, (iii) has such knowledge and experience
in financial and business matters and in investments of this type that it is
capable of evaluating the merits and risks of the Purchase and of making an
informed investment decision, and has conducted a review of the business and
affairs of the Company that it considers sufficient and reasonable for purposes
of making the Purchase, (iv) is able to bear the economic risk of the Purchase
and at the present time is able to afford a complete loss of such investment and
(v) is an “accredited investor” (as that term is defined by Rule 501
of Regulation D under the Securities Act), whose sole limited partner is a
controlled affiliate of Nokia Corporation.

     

    (e)          Legend.  The
Investor agrees that all certificates or other instruments representing the
Purchased Securities, the Note Shares and the Warrant Shares will bear a legend
substantially to the following effect:

     

    “THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS.  THIS INSTRUMENT IS ISSUED PURSUANT TO AND SUBJECT TO THE
RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF A NOTE AND WARRANT PURCHASE
AGREEMENT, DATED MARCH 18, 2009, AMONG THE ISSUER OF THESE SECURITIES, THE
SPONSOR AND THE INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH
THE ISSUER.  THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE
SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH SAID
AGREEMENT.  ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID
AGREEMENT WILL BE VOID.”

     

    In the
event that (i) any Purchased Securities, Note Shares or Warrant Shares become
registered under the Securities Act or (ii) the Note Shares or the Warrant
Shares are eligible to be transferred without restriction in accordance with
Rule 144 under the Securities Act, the Company shall issue new certificates or
other instruments representing such Purchased Securities, Note Shares or Warrant
Shares, which shall not contain such portion of the above legend that is no
longer applicable; provided that the Investor
surrenders to the Company the previously issued certificates or other
instruments.

    

    
      
        
           

        

        
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     (f)         U.S. Federal Tax
Treatment. The Investor is a limited partnership which has not made an
election under United States Treasury Regulation 301.7701-3 to be treated as an
association taxable as a corporation for United States Federal tax
purposes.

     

    To the
extent the Investor transfers its rights to the Permitted Transferee at or prior
to the Closing, the representations and warranties in Sections 2.3(a), (b), (d)
and (e) shall be deemed to also be made by the Investor in respect of the
Permitted Transferee and the representation and warranty in Section 2.3(c)
shall be deemed to be made in respect of the Investor and the Permitted
Transferee collectively.

     

    Article
III

     

    Covenants

     

    3.1   
     Certain Actions by the
Company.  From the date of the Closing, as long as the Investor
(i) holds the Note or the Warrant and (ii) maintains ownership of an aggregate
amount of not less than 78,000,000 Ordinary Shares comprised of the Note Shares
and/or the Warrant Shares or such Ordinary Shares into which the Note then held
by the Investor is convertible and for which the Warrant held by the Investor is
exercisable, the Company shall not, without prior written consent of the
Investor:

     

    (a)         change
the terms of the Note or the Warrant;

     

    (b)         (i)
authorize or issue any security senior to or pari passu with the Note (including
any security convertible into, exercisable for or exchangeable for any such
security) or any security senior to the Ordinary Shares (including any security
convertible into, exercisable for or exchangeable for any such security); (ii)
enter into any agreement for indebtedness, including guarantees and like
contingent obligations or (iii) authorize or issue any Ordinary Shares
(including any security convertible into, exercisable for or exchangeable for
Ordinary Shares) for an amount less than US$0.125 per Ordinary Share (or US$5 per ADS), such that
the amounts of securities or obligations described in (i), (ii) and (iii) above
would exceed US$10,000,000, either individually or in the
aggregate;

     

    (c)         engage
in any Related Party Transaction.  For purposes herein, a “Related Party
Transaction” means a transaction between the Company or any of its
Subsidiaries and (i) any shareholder of the Company that (A) owns of
record, as reflected in the Register of Members of the Company, or (B) owns
beneficially, as reflected in disclosure on Schedules 13D or 13G filed with the
Commission in accordance with Section 13(d) of the Exchange Act, 5% or more of
the voting shares of the Company, (ii) any executive officer of the
Company, (iii) any director of the Company or (iv) any affiliate of either
the Company or any such shareholder, executive officer or director, in
each case other than any transaction in the ordinary course of business of
the Company; or

     

    (d)         make
any recommendation to the Company’s shareholders or take other actions through
its Board of Directors (the “Board”) that would
materially and adversely affect the rights of the Investor under the terms of
the Purchased Securities (or the Ordinary Shares issuable upon the conversion or
exercise thereof), subject to applicable laws, including laws governing the
fiduciary duties of the Board, and the articles of association and the
memorandum of association of the Company.  For the avoidance of doubt,
administrative actions, including the preparation and distribution of proxy
materials, will not be deemed a breach of this covenant.

    

    
      
        
           

        

        
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    3.2   
     SEC Reports; NASDAQ
Listing.  For so long as the Investor continues to hold the
Purchased Securities, the Company shall file with the Commission in a timely
manner all reports and other documents required to be filed by the Company
pursuant to the Exchange Act.  For so long as the Investor continues
to hold the Purchased Securities, the Company shall use its reasonable best
efforts to maintain the listing of its ADSs on the NASDAQ Global
Market.

     

    3.3         Sales of Ordinary Shares by
the Sponsor.  Until the earlier of (i) October 1, 2011 and (ii)
such time as the Investor ceases to hold any Purchased Securities, the Sponsor
shall not sell any Ordinary Shares that are held by the Sponsor as of the date
of this Agreement without the prior written consent of the
Investor.

     

    Article
IV

     

    Additional
Agreements

     

    4.1         Commercially Reasonable
Efforts.  Subject to the terms and conditions of this
Agreement, each of the parties will use its commercially reasonable efforts in
good faith to take, or cause to be taken, all actions, and to do, or cause to be
done, all things necessary, proper or desirable, or advisable under applicable
laws, so as to permit consummation of the Purchase as promptly as practicable
and otherwise to enable consummation of the transactions contemplated hereby and
shall use commercially reasonable efforts to cooperate with the other party to
that end.

     

    4.2         Conversion of Ordinary
Shares.  The Company shall use its reasonable best efforts to
assist in a timely manner the Investor in any conversions of such Investor’s
Note Shares and Warrant Shares into ADSs.

     

    4.3         Expenses.  Within
30 Business Days following the Closing, the Company will pay or reimburse all
reasonable fees, charges and out-of-pocket expenses of (i) legal counsel engaged
by the Investor in connection with the negotiation, preparation, execution and
delivery of the Transaction Documents and (ii) the security review firm engaged
by the Investor, up to a maximum aggregate amount of US$50,000, to the extent
evidenced by written invoices of sufficient detail and clarity.

     

    4.4         Board Observer
Rights.  (a)    From the date of the
Closing and until such time as the Investor ceases to maintain ownership of an
aggregate amount of not less than 31,200,000 Ordinary Shares comprising the Note
Shares, Warrant Shares and such Ordinary Shares into which the Note then held by
the Investor are convertible and for which the Warrant held by the Investor is
exercisable (in each case, as adjusted for share splits, share dividends,
combinations and recapitalizations), the Investor shall be entitled to appoint
one representative to attend meetings of the Board as a non-voting observer (the
“Observer”).  The
Company will give the Observer written notice of each meeting of the Board at the same time and in
the same manner as notice is given to the members of the Board and shall provide
the Observer with copies of all minutes, consents and other materials that it
provides to the members of the Board at the same time and in the same manner as
such materials are given to the members of the Board. Notwithstanding any other
right granted under Section 4.4, the Company reserves the right to exclude the
Observer from access to any material or meeting or portion thereof if the
Company believes on the advice of counsel that such exclusion is reasonably
necessary to preserve the attorney-client privilege.

    

    
      
        
           

        

        
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    (a)         
The Observer shall agree to comply with the insider trading policies of the
Company and all applicable insider trading laws and to maintain the
confidentiality of all confidential information furnished to the Observer by the
Company or otherwise obtained by the Observer in respect of any business
transacted by the Board, whether oral, written or electronic, together with any
reports, analyses, compilations, memoranda, notes and any other written or
electronic materials prepared by the Observer or by the Observer’s
Representatives (as defined below) that contain, reflect or are based upon such
information (collectively, “Confidential
Information”).  Confidential Information may be disclosed to
any general partners, counsel, financial advisors, consultants and other
representatives of the Observer (“Observer
Representatives”), provided that the Observer shall be liable for any
disclosure by any Observer Representative that is not permitted by this Section
4.4.  The term “Confidential Information” does not include information
that (i) is or becomes publicly available other than as a result of a disclosure
by the Observer or by any of the Observer Representatives in violation of this
Section 4.4, (ii) is already in the Observer’s or any Observer Representative’s
possession, provided that such information is not known by the Observer or any
such Observer Representative, as the case may be, to be subject to any legal or
contractual obligation of confidentiality owed to the Company, (iii) is or
becomes available to the Observer or any Observer Representatives on a
non-confidential basis from a source other than the Company, provided that such
source is not known by the Observer or any such Observer Representatives, as the
case may be, to be subject to any legal or contractual obligation to the Company
to keep such information confidential, or (iv) is independently developed by the
Observer or on the Observer’s behalf without violating any of the Observer’s
obligations under this Section 4.4.

     

    4.5         Transfers.

     

    (a)   
      The Investor shall not, without the prior
written consent of the Company, directly or indirectly transfer, sell, contract
to sell, assign, pledge, convey, lend, hypothecate, grant any option to
purchase, purchase any option to sell, make any short sale or otherwise encumber
or dispose of (including entering into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequence of
ownership interests) any of the Purchased Securities.  Each
transaction referenced in this clause is herein called a “Transfer”.  Exercise
of the Warrant for Warrant Shares in accordance with the terms of the Warrant
and conversions of the Note for Note Shares in accordance with the terms of the
Note shall not be deemed Transfers.

     

    (b)         Notwithstanding
the foregoing, Section 4.5(a) shall not prevent the Investor from transferring
any or all of the Purchased Securities, at any time, to Nokia Corporation (the
“Permitted
Transferee”), but only if the Permitted Transferee agrees in writing for
the benefit of the Company to be bound by the terms of this Agreement as
applicable to the Investor (including these transfer restrictions); provided further that no such
Transfer shall relieve the Investor of its obligations under the Transaction
Documents.  The Investor shall provide written notice to the Company
of any Transfer of Purchased Securities to the Permitted Transferee within 30
calendar days after such Transfer.

     

    (c)         
For the avoidance of doubt, without the prior written consent of the Company,
neither the Investor nor the Permitted Transferee may at any time engage in any
Hedging Transaction with respect to any of the Purchased Securities, the Note
Shares or the Warrant Shares.  “Hedging Transaction”
means any short sale (whether or not against the box) or any purchase, sale or
grant of any right (including any put or call option, swap or other derivative
transaction whether settled in cash or securities) to obtain a “short” or “put
equivalent position” with respect to the Ordinary Shares.

     

    (d)         The
Purchased Securities are, and the Note Shares and the Warrant Shares will be
when issued, restricted securities under the Securities Act and may not be
offered or sold except pursuant to an effective registration statement or an
available exemption from registration under the Securities
Act.  Accordingly, the Investor shall not, directly or through others,
offer or sell any Purchased Securities, Note Shares or Warrant Shares except
pursuant to a registration statement or an exemption from registration under the
Securities Act, if available.  Prior to any Transfer of the Purchased
Securities, Note Shares or Warrant Shares, the Investor shall notify the Company
of such Transfer (it being understood that the notification of any sale of Note
Shares and/or Warrant Shares pursuant to an effective registration statement
shall be made in accordance with Section 2(b) of the Registration Rights
Agreement).  With respect to any such Transfer (other than pursuant to
an effective registration statement), the Company may require the Investor to
provide, prior to such Transfer, such evidence that the Transfer will comply
with the Securities Act (including written representations and an opinion of
counsel) as the Company may reasonably request.  The Company may
impose stop-transfer instructions with respect to any securities that are to be
transferred in contravention of this Agreement.

    

    
      
        
           

        

        
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    (e)          The
Investor may at any time, subject to applicable laws, request in writing that
the Company exchange any outstanding Purchased Securities for convertible senior
notes and warrants of one of the Company’s wholly owned entities in the People’s
Republic of China (i) of equivalent value as and (ii) with terms substantially
similar to, in each of (i) and (ii) those of the Purchased Securities then
outstanding.  Subject to applicable laws, upon receiving a request
from the Investor, the Company shall effect such exchange as soon as
practicable.

     

    4.6         Form D and Blue Sky
.  The
Company shall file a report on Form D with respect to the Purchased Securities
if required to do so pursuant to Regulation D under the Securities Act and shall
notify the Investor promptly after such filing.  The Company shall
take such action as the Company shall reasonably determine to be necessary in
order to obtain an exemption for or to qualify the Purchased Securities for sale
to the Investor pursuant to this Agreement under applicable securities or “Blue
Sky” laws of the states of the United States.

     

    4.7         CFC.  The
Company shall make due inquiry with its tax advisors on an annual basis
regarding the Company’s status as a CFC and regarding whether any portion of the
Company’s income is “subpart F income” (as defined in Section 952 of the
Code).  No later than 60 calendar days following the end of a taxable
year in which the Company becomes a CFC, the Company shall inform the Investor
of its status as a CFC.

     

    4.8         Public
Announcements.   No press release or other public
announcement in respect of this Agreement or the transactions contemplated
hereby that includes the name of the Investor shall be issued or made by the
Company or its affiliates without the consent of the Investor (which consent
shall not be unreasonably withheld, conditioned or delayed), except for any such
press release or other public announcement as the Company may determine in good
faith is required to be issued or made by it or any of its affiliates by
applicable law, in which case the Company, shall use its commercially reasonable
efforts to allow the Investor reasonable time under the circumstances to comment
on such press release or other public announcement in advance of such issuance
or making.

     

    Article
V

     

    Miscellaneous

     

    5.1         Termination.  This
Agreement may be terminated at any time prior to the Closing:

     

    (a)         by
either the Investor or the Company if the Closing shall not have occurred by the
thirtieth calendar
day following the date of this Agreement;  provided, however, that in the event the
Closing has not occurred by such thirtieth calendar day, the parties will
consult in good faith to determine whether to extend the term of this Agreement,
it being understood that the parties shall be required to consult only until the
fifth day after such thirtieth calendar day and not be under any obligation to
extend the term of this Agreement; provided, further, that the
right to terminate this Agreement under this Section 5.1(a) shall not be
available to any party whose breach of any representation or warranty or failure
to perform any obligation under this Agreement shall have caused or resulted in
the failure of the Closing to occur on or prior to such thirtieth calendar
day;

     

    (b)         by
either the Investor or the Company in the event that any Governmental Entity
shall have issued an order, decree or ruling or taken any other action
restraining, enjoining or otherwise prohibiting the transactions contemplated by
this Agreement and such order, decree, ruling or other action shall have become
final and nonappealable; or

    

    
      
        
           

        

        
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    (c)         by
the mutual written consent of the Investor and the Company.

     

    In the
event of termination of this Agreement as provided in this Section 5.1, this
Agreement shall forthwith become void and there shall be no liability on the
part of either party hereto, except that nothing herein shall relieve either
party from liability for any breach of this Agreement.

     

    5.2         Amendment.  No
amendment of any provision of this Agreement will be effective unless made in
writing and signed by a duly authorized officer or representative of each party
hereto.

     

    5.3         Waiver of
Conditions.  The conditions to each party’s obligation to
consummate the Purchase are for the sole benefit of such party and may be waived
by such party in whole or in part to the extent permitted by applicable
laws.  No waiver will be effective unless it is in a writing signed by
a duly authorized officer or representative of the waiving party that makes
express reference to the provision or provisions subject to such
waiver.

     

    5.4         Counterparts and
Facsimile.  For the convenience of the parties hereto, this
Agreement may be executed in any number of separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts
will together constitute the same agreement.  Executed signature pages
to this Agreement may be delivered by facsimile and such facsimiles will be
deemed as sufficient as if actual signature pages had been
delivered.

     

    5.5         Governing Law; Submission to
Jurisdiction, Etc.

     

    (a)         This
Agreement will be governed by and construed in accordance with the laws of the
State of New York, without giving effect to the conflict of laws principles
thereof.

     

    (b)         Each
of the parties hereto agrees all disputes arising among the parties in
connection with the Transaction Documents, or the breach, termination,
interpretation or validity thereof, shall be finally settled by the Hong Kong
International Arbitration Centre (the “HKIAC”) pursuant to
UNCITRAL Rules with the Company, on the one hand, being entitled to designate
one arbitrator, and with the Investor, on the other hand, being entitled to
designate one arbitrator, while the third arbitrator will be selected by
agreement between the two designated arbitrators or, failing such agreement,
within 10 calendar days of initial consultation between the two arbitrators, by
the HKIAC pursuant to its arbitration rules.  If any party fails to
designate its arbitrator within 20 calendar days after the designation of the
first of the three arbitrators, the HKIAC shall have the authority to designate
any person whose interests are neutral to the parties as the second of the three
arbitrators.  The arbitration shall be conducted in
English.  To the extent consistent with UNCITRAL rules, each of the
parties hereto shall cooperate with the others in provision of information
during any discovery process relating to arbitrations in connection with the
Transaction Documents.  The parties hereto further agree that, to the
extent consistent with UNCITRAL rules, the parties shall be entitled to seek
temporary and permanent injunctive relief from the arbitrators without the
necessity of proving actual damages and without posting a bond or other
security.

     

    (c)         Notwithstanding
the provisions of Section 5.5(b) above, each party hereto agrees, and the
Investor shall procure the Observer to agree, that it shall bring any action or
proceeding in respect of any claim arising out of or related to the provisions
under Section 4.4(c) of this Agreement, and the corresponding confidentiality
agreements or provisions in any subsequent agreements among the parties relating
to the Observer’s rights, exclusively in the United States District Court for
the Southern District of New York or any New York State court sitting in New
York City (the “Designated Courts”),
and solely in connection with such claim (i) irrevocably submits to the
non-exclusive jurisdiction of the Designated Courts, (ii) waives any
objection to laying venue in any such action or proceeding in the Designated
Courts and (iii) waives any objection that any of the Designated Courts is
an inconvenient forum or does not have jurisdiction over any party
hereto.

    

    
      
        
           

        

        
          - 13
-

          
            

          

        

        
           

        

      

    

     

    (d)         Each
of the parties hereto agrees that notice may be served upon such party at the
address and in the manner set forth for such party in Section 5.6.

     

    (e)         To
the extent permitted by applicable laws, each of the parties hereto hereby
unconditionally waives trial by jury in any legal action or proceeding relating
to the Transaction Documents or the transactions contemplated hereby or
thereby.

     

    5.6         Notices.  Any
notice, request, instruction or other document to be given hereunder by any
party to the other will be in writing and will be deemed to have been duly given
(a) on the date of delivery if delivered personally, or by facsimile, upon
confirmation of receipt, or (b) on the second Business Day following the
date of dispatch if delivered by a recognized next-day courier
service.  All notices hereunder shall be delivered as set forth below,
or pursuant to such other instructions as may be designated in writing by the
party to receive such notice.

     

    
      
        	
                (A)        If
      to the Investor:

              
	 
      	 
      
	 
      	
                Nokia
      Growth Partners II, L.P.

              
	 
      	
                c/o
      N.G. Partners II, L.L.C., its general partner

              
	 
      	
                545
      Middlefield Road, Suite 210

              
	 
      	
                Menlo
      Park, CA 94025

              
	 
      	
                United
      States of America

              
	 
      	
                Attention:  John
      Gardner

              
	 
      	
                Facsimile:
      (+1-650) 462-7252

              
	 
      	 
      
	
                 
      with a copy to:

              
	 
      	 
      
	 
      	
                Gunderson
      Dettmer Stough Villeneuve Franklin & Hachigian, LLP

              
	 
      	
                1200
      Seaport Boulevard

              
	 
      	
                Redwood
      City, CA  94063

              
	 
      	
                United
      States of America

              
	 
      	
                Attention:  Brian
      C. Patterson

              
	 
      	
                Facsimile:
      (+1-650) 321-2800

              
	 
      	 
      
	
                (B)        If
      to the Company:

              
	 
      
	 
      	
                KongZhong
      Corporation

              
	 
      	
                35th
      Floor, Tengda Plaza

              
	 
      	
                No.
      168 Xizhimenwai Street

              
	 
      	
                Beijing
      100044

              
	 
      	
                People’s
      Republic of China

              
	 
      	
                Attention:  Chief
      Financial Officer

              
	 
      	
                Facsimile:  (+86-10)
      8857-5891

              
	 
      	 
      
	
                 
      with a copy to:

              
	 
      	 
      
	 
      	
                Sullivan
      & Cromwell LLP

              
	 
      	
                Suite
      501, Tower 1

              
	 
      	
                China
      World Trade Center

              
	 
      	
                One
      Jian Guo Men Wai Avenue

              
	 
      	
                Beijing
      100004

              
	 
      	
                People’s
      Republic of China

              
	 
      	
                Attention:
      Robert Chu

              
	 
      	
                Facsimile:  (+86-10)
      5923-5950

              

      

    

     

    
      
        
           

        

        
          - 14
-

          
            

          

        

        
           

        

      

    

     

    5.7         Entire Agreement,
Etc.  This Agreement (including the Annexes hereto) and the
other Transaction Documents constitute the entire agreement, and supersede all
other prior agreements, understandings, representations and warranties, both
written and oral, among the parties, with respect to the subject matter
hereof.

     

    5.8         Definitions of “Subsidiary”,
“affiliate” and
“person”.  (a)        Unless
otherwise stated, when a reference is made in this Agreement to a Subsidiary of
a person, the term “Subsidiary” means
those entities of which such person owns or controls more than 50% of the
outstanding equity securities either directly or through an unbroken chain of
entities as to each of which more than 50% of the outstanding equity securities
is owned directly or indirectly by its parent, including as of the date hereof
KongZhong Information Technologies (Beijing) Co., Ltd. and KongZhong China Co.,
Ltd.

     

    (b)         The
term “affiliate” means,
with respect to any person, any person directly or indirectly controlling,
controlled by or under common control with, such other person.  For
purposes of this definition, “control” when used with respect to any person,
means the possession, directly or indirectly, of the power to cause the
direction of management and/or policies of such person, whether through the
ownership of voting securities by contract or otherwise.

     

    (c)         The
term “person”
means any individual, corporation, trust, association, company, partnership,
joint venture, limited liability company, joint stock company, Governmental
Entities or other entity.

     

    5.9         Assignment.  Neither
this Agreement nor any right, remedy, obligation nor liability arising hereunder
or by reason hereof shall be assignable by any party hereto without the prior
written consent of the other parties, and any attempt to assign any right,
remedy, obligation or liability hereunder without such consent shall be void,
except (i) an assignment, in the case of a merger or consolidation where such
party is not the surviving entity, or a sale of substantially all of its assets,
to the entity which is the survivor of such merger or consolidation or the
purchaser in such sale or (ii) an assignment by Investor in accordance with
Section 4.5(b) hereof.

     

    5.10       Severability.  If
any provision of this Agreement or a Transaction Document, or the application
thereof to any person or circumstance, is determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions
hereof, or the application of such provision to persons or circumstances other
than those as to which it has been held invalid or unenforceable, will remain in
full force and effect and shall in no way be affected, impaired or invalidated
thereby, so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any
party.  Upon such determination, the parties shall negotiate in good
faith in an effort to agree upon a suitable and equitable substitute provision
to effect the original intent of the parties.

     

    5.11       No Third Party
Beneficiaries.  Nothing contained in this Agreement, expressed
or implied, is intended to confer upon any person or entity other than the
Company, the Sponsor and the Investor (and the Permitted Transferee or other
transferee to which an assignment is made in accordance with this Agreement),
any benefits, rights, or remedies.

     

    5.12       Further
Assurances.  Each party shall do and perform, or cause to be
done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
any other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

     

    *           *           *

    

    
      
        
           

        

        
          - 15
-

          
            

          

        

        
           

        

      

    

     

    
      

      

    

    In Witness
Whereof, this Agreement has been duly executed and delivered by the duly
authorized officers of the parties hereto as of the date first herein above
written.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  	 
      	
                                                                          KONGZHONG
      CORPORATION

                                                                        
	 	 
	 
      	 
      
	 
      	
                                                                          By:

                                                                        	
                                                                          /s/  Leilei
  Wang

                                                                        
	 
      	 
      	
                                                                          Name:

                                                                        	
                                                                          Leilei
      Wang

                                                                        
	 
      	 
      	
                                                                          Title:

                                                                        	
                                                                          CEO
      of the Company

                                                                        
	 
      	 
      	 
      
	 	 
	 
      	
                                                                          LEILEI
      WANG

                                                                        
	 
      	 
      
	 
      	 
      
	 
      	
                                                                          By:

                                                                        	
                                                                          /s/ Leilei Wang

                                                                        
	 
      	 
      	
                                                                          Name:

                                                                        	
                                                                          Leilei
      Wang

                                                                        
	 
      	 
      	
                                                                          Title:

                                                                        	
                                                                          CEO
      of the Company

                                                                        
	 	 	 	 
	 	 	 	 
	 	
                                                                          NOKIA
      GROWTH PARTNERS II, L.P.

                                                                        
	 	 	 	 
	 	 	 	 
	 	By:
      	
                                                                          N.G.
      Partners II, L.L.C.

                                                                        
	 	 	 	 
	 	 	
                                                                          /s/ John Gardner

                                                                        
	 	 	
                                                                          Name:

                                                                        	
                                                                          John
      Gardner

                                                                        
	 	 	
                                                                          Title:

                                                                        	
                                                                          Managing
      Member

                                                                        

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ANNEX
A: FORM OF NOTE

    

    (Face of Note)

    

    THE NOTE
REPRESENTED BY THIS INSTRUMENT (THIS “NOTE”) AND THE
SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A
REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER SUCH ACT OR SUCH LAWS.  THIS NOTE IS ISSUED PURSUANT TO AND
SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF A NOTE AND
WARRANT PURCHASE AGREEMENT, DATED MARCH 18, 2009, AMONG THE ISSUER OF THESE
SECURITIES, THE SPONSOR AND THE INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS
ON FILE WITH THE ISSUER.  THIS NOTE MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED EXCEPT IN COMPLIANCE WITH SAID AGREEMENT.  ANY SALE OR
OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.

     

    KONGZHONG
CORPORATION

     

    Adjustable
Rate Convertible Senior Note Due 2014

    

    US$6,775,400

     

    KongZhong Corporation, an exempted
limited liability company incorporated under the laws of the Cayman Islands (the
“Company”), for
value received, hereby promises to pay to Nokia Growth Partners II, L.P., or its
Permitted Transferee (the “Holder”), the
principal sum of SIX MILLION SEVEN HUNDRED SEVENTY FIVE THOUSAND FOUR HUNDRED
United States Dollars (US$6,775,400) upon presentation and surrender of this
Note on March 18, 2014, and to pay interest at the times and rates specified on
the reverse of this Note until the principal hereof is paid or made available
for payment.  Payment of the principal and interest of this Note shall be
made to the Holder of this Note specified in the register of securities by wire
transfer of immediately available funds to an account designated by the Holder
in such lawful money of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts.

    

    Reference is made to the further
provisions of this Note set forth on the reverse hereof, including, without
limitation, provisions giving the Company the right to redeem this Note on
certain terms and giving the Holder of this Note the right to convert this Note
into Ordinary Shares and the right to require the Company to accelerate payment
on this Note upon certain events, in each case on the terms and subject to the
limitations referred to on the reverse hereof.  Such further provisions
shall for all purposes have the same effect as though fully set forth at this
place.

    

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

    

    
      
        
           

        

        
          - 17
-

          
            

          

        

        
           

        

      

    

     

     

    IN WITNESS WHEREOF, the Company has
caused this instrument to be duly executed.

    

    Dated:
March __, 2009

    

    
      
        
          
            
              	
                      KONGZHONG
      CORPORATION

                    
	 
      
	
                      By:

                    	
                       

                    
	 
      	
                      Authorized
      Signatory

                    
	 
      	 
      
	
                      Attest:   

                    	 
	 
      	
                      Authorized
      Signatory

                    

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (Reverse of
Note)

    

    This Note
evidences a duly authorized issue of securities of the Company, designated as
its Adjustable Rate Convertible Senior Note Due 2014, in an aggregate principal
amount of US$6,775,400 (the “Principal Amount”),
issued under and pursuant to a Note and Warrant Purchase Agreement, dated as of
March 18, 2009 (the “Purchase Agreement”),
among the Company, Leilei Wang, as the Sponsor, and Nokia Growth Partners II,
L.P., as the Investor, to which Purchase Agreement and all amendments thereto
reference is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Company and the Holder of
this Note.

    

    The indebtedness evidenced by this Note
is unsecured and unsubordinated indebtedness of the Company and ranks equally
with the Company’s other unsecured and unsubordinated indebtedness.

    

    
      	
              1.

            	
              Form and
      Denomination.  This Note shall only be represented by one
      certificate with a denomination equal to the Principal
    Amount.

            

    

    

    
      	
              2.

            	
              Payment of
      Interest.  Until the Principal Amount is paid, or deemed
      to be paid, in full (whether at maturity, or by redemption, acceleration,
      conversion or cancellation), any outstanding portion of the Principal
      Amount of this Note that has not been repaid, redeemed, accelerated,
      converted or cancelled shall bear interest at a rate per annum as set
      forth below.

            

    

    

    (a)           Initial Interest
Rate.  For the period commencing and including March 18, 2009
and ending and including December 31, 2009, the applicable interest rate shall
be 8% per annum, compounded annually on the outstanding portion of the Principal
Amount and any accrued and unpaid interest that is overdue.

    

    (b)           Adjusted Interest
Rate.  For the fiscal year commencing January 1, 2010 and each
fiscal year thereafter, so long as the Company is not in material breach of any
of the covenants set forth in Article III of the Purchase Agreement, the
applicable interest rate shall be as set forth below (the “Adjusted Interest
Rate”) in accordance with the Earning/Debt Ratio achieved by the Company
in respect of the immediately preceding fiscal year:

    

    
      	
               
      

            	
              (i)

            	
              The
      Adjusted Interest Rate for a given fiscal year shall be 6% per annum,
      compounded annually on the outstanding portion of the Principal Amount and
      any accrued and unpaid interest that is overdue, if the Company achieves
      an Earning/Debt Ratio equal to or greater than 2.1 in respect of the
      preceding fiscal year;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      Adjusted Interest Rate for a given fiscal year shall be 7% per annum,
      compounded annually on the outstanding portion of the Principal Amount and
      any accrued and unpaid interest that is overdue, if the Company achieves
      an Earning/Debt Ratio equal to or greater than 1.5 but less than 2.1 in
      respect of the preceding fiscal year;
and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              The
      Adjusted Interest Rate for a given fiscal year shall be 8% per annum,
      compounded annually on the outstanding portion of the Principal Amount and
      any accrued and unpaid interest that is overdue, if the Company achieves
      an Earning/Debt Ratio of less than 1.5 in respect of the preceding fiscal
      year;

            

    

    

    “Earning/Debt Ratio”
in respect of any given fiscal year means the quotient of (w) Adjusted Net
Income for such fiscal year, divided by (x) the outstanding portion of the
Principal Amount as of December 31 of such fiscal year.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    “Adjusted Net Income”
in respect of any given fiscal year means the sum of (y) the net income of the
Company, as reflected in the audited consolidated statement of operations of the
Company for such fiscal year and (z) any interest, expenses and
charges associated with this Note and any expenses and charges associated with the Warrant
incurred or accrued during such fiscal year.  Prior to June 30 of each year until
the Principal Amount is paid or deemed to be paid (whether at maturity,
by redemption, acceleration, conversion or cancellation), the Company will provide the Holder
with information regarding (i) the amount of any such interest, expenses and
charges associated with this Note, (ii) the amount of any such expenses and
charges associated with the
Warrant and (iii) the resulting Adjusted Net Income for the applicable fiscal
year.

    

    (c)           Manner of
Payment.  Accrued and unpaid interest shall be paid on the
following basis (each date on which an interest payment is to be made being
referred to herein as an “Interest Payment
Date”):

    

    
      	
               
      

            	
              (i)

            	
              any
      unpaid interest accrued on any outstanding portion of the Principal Amount
      during the period March 18, 2009 through June 30, 2009 shall be paid on
      July 15, 2009;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              any
      unpaid interest accrued on any outstanding portion of the Principal Amount
      during the period July 1 through December 31 of any given fiscal year
      commencing January 1, 2009 and each fiscal year thereafter shall be paid
      on January 15 of the following fiscal
year;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              any
      unpaid interest accrued on any outstanding portion of the Principal Amount
      during the period January 1 through June 30 of any given fiscal year
      commencing January 1, 2010 and each fiscal year thereafter shall be paid
      on July 15 of such fiscal year; and

            

    

    

    
      	
               
      

            	
              (iv)

            	
              notwithstanding
      clauses (i), (ii) and (iii) above in this Section 2(c), any unpaid
      interest accrued on any outstanding portion of the Principal Amount that
      is to be repaid (whether at maturity, or by redemption, acceleration,
      conversion or cancellation) as of a given date shall be paid on such
      date.

            

    

    

    (d)           Day Count
Convention. Interest on this Note will be
calculated on the basis of
a 360-day year consisting of 12 months of 30 days each and, in the case
of an incomplete month, the actual number of days elapsed during that
month.

    

    
      
        	
                3.

              	
                Conversion.  (a)   
       Subject
      to and in compliance with the provisions hereof, the Holder has the right,
      at any time prior to such time as the Principal Amount is paid or deemed
      to be paid (whether at maturity, by redemption, acceleration, conversion
      or cancellation), to convert the outstanding Principal Amount, or a
      portion thereof, into that number of Ordinary Shares (“Conversion”),
      obtained by dividing the outstanding Principal Amount of this Note, or
      portion thereof to be converted, by the conversion price of US$0.08915
      (the “Conversion
      Price”), as adjusted from time to time in accordance with the
      provisions hereof, upon surrender of this Note, together with the delivery
      of a Conversion Notice in the form attached hereto as Exhibit A, to the
      principal executive office of the Company located at 35th Floor, Tengda
      Plaza,  No.168 Xizhimenwai Street, Beijing 100044, People’s
      Republic of China (or such other office or agency of the Company as the
      Company may designate by notice in writing to the Holder).  The
      Holder may exercise such right of Conversion, on each of up to three
      occasions, such that the portion of the outstanding Principal Amount of
      the Note to be converted on each occasion is not less than
      US$1,783,000.

              

      

    

    

    
      
        
        

      

      
        - 2
-

        
          

        

      

      
        
        

      

    

     

    (b)             If
the Holder on any occasion selects to convert less than the total Principal
Amount of this Note then outstanding, the Holder will be entitled to receive
from the Company within a reasonable time, and in any event not exceeding five
Business Days after the date on which such portion of outstanding Principal
Amount has been duly converted in accordance with the terms of this Note, a new
note, substantially in form of this Note, for that amount of the Principal
Amount equal to the difference between the Principal Amount outstanding prior to
such Conversion and the portion of the Principal Amount that was so converted
into Ordinary Shares.

    

    (c)             Adjustments and Other
Rights.  The Conversion Price shall be subject to adjustment
from time to time as follows; provided, that if
more than one clause of this Section 3(c) is applicable to a single event, no
single event shall cause an adjustment under more than one clause of this
Section 3(c) so as to result in duplication:

    

    
      
        	
                
                

              	
                (i)

              	
                Stock Splits,
      Subdivisions, Reclassifications or Combinations.  If the
      Company shall (i) declare and pay a dividend or make a distribution in
      Ordinary Shares to all holders of its outstanding Ordinary Shares, (ii)
      subdivide or reclassify the outstanding Ordinary Shares into a greater
      number of shares or (iii) combine or reclassify the outstanding Ordinary
      Shares into a smaller number of shares, the number of Ordinary Shares
      issuable upon Conversion at the time of the record date for such dividend
      or distribution or the effective date of such subdivision, combination or
      reclassification shall be proportionately adjusted so that the Holder
      after such date shall be entitled to convert into the number of Ordinary
      Shares which such Holder would have owned or been entitled to receive in
      respect of the Ordinary Shares subject to this Note after such date had
      the outstanding Principal Amount or such portion thereof been converted
      immediately prior to such date. In such event, the Conversion Price in
      effect at the time of the record date for such dividend or distribution or
      the effective date of such subdivision, combination or reclassification
      shall be adjusted to the number obtained by dividing (x) the product of
      (1) the number of Ordinary Shares issuable upon such Conversion before
      such adjustment and (2) the Conversion Price in effect immediately prior
      to the record or effective date, as the case may be, for the dividend,
      distribution, subdivision, combination or reclassification giving rise to
      this adjustment by (y) the new number of Ordinary Shares issuable upon
      Conversion determined pursuant to the immediately preceding
      sentence.

              

      

    

    

    
      
        	
                
                

              	
                (ii)

              	
                Business
      Combinations.  In case of any Business Combination or
      reclassification of the Ordinary Shares (other than a reclassification of
      Ordinary Shares referred to in Section 3(c)(i)), the Holder’s right to
      receive Ordinary Shares upon Conversion shall be converted into the right
      to convert the outstanding Principal Amount or a portion thereof to
      acquire the number of shares or other securities or property which the
      Ordinary Shares issuable (at the time of such Business Combination or
      reclassification) upon Conversion immediately prior to such Business
      Combination or reclassification would have been entitled to receive upon
      consummation of such Business Combination or reclassification; and in any
      such case, if necessary, the provisions set forth herein with respect to
      the rights and interests thereafter of the Holder shall be appropriately
      adjusted so as to be applicable, as nearly as may reasonably be, to the
      Holder’s right to convert the outstanding Principal Amount or a portion
      thereof into any shares or other securities or property pursuant to this
      paragraph.  In determining the kind and amount of shares,
      securities or the property receivable upon Conversion following the
      consummation of such Business Combination, if the holders of Ordinary
      Shares have the right to elect the kind or amount of consideration
      receivable upon consummation of such Business Combination, then the Holder
      shall have the right to make a similar election (including, without
      limitation, being subject to similar proration constraints) upon
      Conversion with respect to the number of shares or other securities or
      property which the Holder will receive upon Conversion.  “Business
      Combination” means a merger, consolidation, statutory share
      exchange, sale, transfer or exclusive license of all or substantially all
      of assets or shares or similar transaction that requires the approval of
      the Company’s shareholders or other transactions or series of transactions
      that otherwise result in a change in control of the
    Company.

              

      

    

     

    
      
        
        

      

      
        - 3
-

        
          

        

      

      
        
        

      

    

     

    
      
        	
                
                

              	
                (iii)

              	
                Rounding of
      Calculations; Minimum Adjustments.  All calculations
      under this Section 3(c) shall be made to the nearest one-tenth (1/10th) of
      a cent or to the nearest one-hundredth (1/100th) of a share, as the case
      may be.  Any provision of this Section 3(c) to the contrary
      notwithstanding, no adjustment in the Conversion Price or the number of
      Ordinary Shares into which the outstanding Principal Amount or a portion
      thereof is convertible shall be made if the amount of such adjustment
      would be less than US$0.01 or one-tenth (1/10th) of an Ordinary Share, but
      any such amount shall be carried forward and an adjustment with respect
      thereto shall be made at the time of and together with any subsequent
      adjustment which, together with such amount and any other amount or
      amounts so carried forward, shall in the aggregate be US$0.01 or 1/10th of
      an Ordinary Share, or more.

              

      

    

     

    
      
        	
                
                

              	
                (iv)

              	
                Timing of Issuance of
      Additional Ordinary Shares Upon Certain Adjustments.  In
      any case in which the provisions of this Section 3(c) shall require that
      an adjustment shall become effective immediately after a record date for
      an event, the Company may defer until the occurrence of such event (i)
      issuing to the Holder of this Note converted after such record date and
      before the occurrence of such event the additional Ordinary Shares
      issuable upon such Conversion by reason of the adjustment required by such
      event over and above the Ordinary Shares issuable upon such Conversion
      before giving effect to such adjustment and (ii) paying to such Holder any
      amount of cash in lieu of a fractional Ordinary Share; provided, however, that
      the Company upon request shall deliver to such Holder a due bill or other
      appropriate instrument evidencing such Holder’s right to receive such
      additional shares, and such cash, upon the occurrence of the event
      requiring such adjustment.

              

      

    

    

    
      
        	
              	
                (v)

              	
                Notice of Adjustment
      Event.  In the event that the Company shall propose to
      take any action of the type described in this Section 3(c) (but only if
      the action of the type described in this Section 3(c) would result in an
      adjustment in the Conversion Price or a change in the type of securities
      or property to be delivered upon Conversion), the Company shall give
      notice to the Holder, in the manner set forth in Section 9, which notice
      shall specify the record date, if any, with respect to any such action and
      the approximate date on which such action is to take place. Such notice
      shall also set forth the facts with respect thereto as shall be reasonably
      necessary to indicate the effect on the Conversion Price and the kind or
      class of shares or other securities or property which shall be deliverable
      upon Conversion. In the case of any action which would require the fixing
      of a record date, such notice shall be given at least five Business Days
      prior to the date so fixed, and in case of all other action, such notice
      shall be given at least 10 Business Days prior to the taking of such
      proposed action. Failure to give such notice, or any defect therein, shall
      not affect the legality or validity of any such
  action.

              

      

    

     

    
      
        
        

      

      
        - 4
-

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                (vi)

              	
                Adjustment
      Rules.  Any adjustments pursuant to this
      Section 3(c) shall be made successively whenever an event referred to
      herein shall occur. If an adjustment in Conversion Price made hereunder
      would reduce the Conversion Price to an amount below the par value of the
      Ordinary Shares, then such adjustment in Conversion Price made hereunder
      shall reduce the Conversion Price to the par value of the Ordinary
      Shares.

              

      

    

    

    (d)             Issuance of Shares;
Authorization.  The Company shall enter the Holder in the
Company’s Register of Members as the holder of the Ordinary Shares issued upon
Conversion, and certificates for Ordinary Shares issued upon such Conversion
will be issued in the name of the Holder, in each case, within a reasonable
time, not to exceed five Business Days after the date on which this Note has
been duly converted in accordance with the terms of this Note. The Company
hereby represents and warrants that any Ordinary Share issuable upon Conversion
in accordance with the provisions of Section 3 will be duly authorized and when
issued upon Conversion in accordance with the terms of this Note, will be
validly issued, fully paid and non-assessable.

    

    (e)             Fractional
Shares.  No fractional Ordinary Shares or scrip representing
fractional Ordinary Shares shall be issued upon any Conversion.  In
lieu of any fractional Ordinary Share to which the Holder would otherwise be
entitled, the Holder shall be entitled to receive a cash payment therefor on the
basis of the Conversion Price.

    

    (f)             
No Rights as
Shareholders.  This Note does not entitle the Holder to any
voting rights or other rights as a shareholder of the Company prior to the date
of conversion hereof.

    

    
      
        	
                4.

              	
                Redemption at the
      Option of the Company.  (a)    At
      any time on or after March 18, 2012, this Note may be redeemed, in whole
      but not in part, at the option of the Company at a redemption price equal
      to 100% of the Principal Amount then outstanding, together with interest
      accrued but unpaid to the date of redemption.  The Company shall
      give the Holder written notice of such redemption not less than 30
      calendar days prior to the date when the Company intends to effect such
      redemption.

              

      

    

    

    (b)             Except
as set forth in Section 4(a) above, prepayment of principal, together with
accrued interest thereon, may not be made without the prior written consent of
the Holder.

    

    
      	
              5.

            	
              Events of Default;
      Acceleration.

            

    

    

    (a)          Event of
Default.  For the purposes hereof, an Event of Default
means:

    

    
      	
               
      

            	
               
      (i)

            	
              a
      material default on any material debt instrument of the Company or any of
      its Subsidiaries;

            

    

    

    
      	
               
      

            	
               
      (ii)

            	
              unless
      the Holder has waived in writing, the amount of the total current assets
      less the total liabilities of the Company, as calculated in accordance
      with GAAP, is less than 2.5 times the sum of the outstanding Principal
      Amount and accrued but unpaid interest as of the date of such
      event;

            

    

    

    
      	
               
      

            	
               
      (iii)

            	
              default
      in the payment of any interest upon this Note when it becomes due and
      payable, and continuance of such default for a period of 30 calendar days;

            

    

    

    
      	
               
      

            	
               
      (iv)

            	
              a
      material default on any of the covenants set forth in Article III of the
      Purchase Agreement, and continuance of such material default for a period
      of 30 calendar days;

            

    

     

    
      
        
        

      

      
        - 5
-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
               
      (v)

            	
              commencement
      of any action or proceeding to make any assignment for the benefit of
      creditors, or any bankruptcy, liquidation, dissolution, termination of
      existence or other similar action, voluntarily or involuntarily, of any of
      the Company, KongZhong Information Technologies (Beijing) Co., Ltd. or
      KongZhong China Co., Ltd; or

            

    

    

    
      	
               
      

            	
               
      (vi)

            	
              involvement
      of the Company or any of the members of its Board of Directors or
      executive officers in litigation or regulatory or governmental
      investigations, actions or proceedings, that the Investor reasonably
      expects, after consultation with the Company, will have a material and
      adverse effect on the Nokia brand.

            

    

    

    (b)           Acceleration.  If
an Event of Default occurs and is continuing, the Holder may declare the
Principal Amount then outstanding and any accrued but unpaid interest due and
payable by a notice in writing to the Company.  Upon receipt of such
notice and if the Event of Default is continuing, the Company shall make such
payment to the Holder within 30 Business Days.  The Holder may, at any
time, rescind such notice and/or waive an Event of Default by sending written
notice thereof to the Company.

    

    
      	
              6.

            	
              Transfer/Assignment.

            

    

    

    (a) Neither
this Note nor any rights hereunder are transferable, without the prior written
consent of the Company.  Notwithstanding the foregoing, this Note may
be transferred to the Permitted Transferee without the prior written consent of
the Company in accordance with Section 4.5(b) of the Purchase
Agreement.  In the event that this Note is transferred to the
Permitted Transferee or to another transferee with the consent of the Company, a
new note shall be made and delivered by the Company, of the same tenor and date
as this Note but registered in the name of the such transferee, upon surrender
of this Note, duly endorsed, to the office or agency of the Company described in
Section 3.

    

    (b) This
Note and any rights hereunder, and any Ordinary Shares issued upon Conversion
shall be subject to the applicable restrictions and other terms and conditions
set forth in the Purchase Agreement.

    

    (c)  If
and for so long as required by the Purchase Agreement, this Note certificate
shall contain a legend as set forth in Section 2.3(e) of the Purchase
Agreement.

    

    
      	
              7.

            	
              Loss, Theft,
      Destruction or Mutilation of this Note.  Upon receipt by
      the Company of evidence reasonably satisfactory to it of the loss, theft,
      destruction or mutilation of this Note, and in the case of any such loss,
      theft or destruction, upon receipt of a bond, indemnity or security
      reasonably satisfactory to the Company, or, in the case of any such
      mutilation, upon surrender and cancellation of this Note, the Company
      shall make and deliver, in lieu of such lost, stolen, destroyed or
      mutilated Note, a new note of like tenor and representing the same
      Principal Amount as provided for in such lost, stolen, destroyed or
      mutilated Note.

            

    

     

    
      
        
        

      

      
        - 6
-

        
          

        

      

      
        
        

      

    

     

    
      	
              8.

            	
              Governing
      Law.  This
      Note shall be governed by and construed in accordance with the laws of the
      State of New York, without giving effect to the conflict of laws
      principles thereof.  The Holder and
      the Company agree that all disputes arising in connection with this
      Note, or the breach, termination, interpretation or validity thereof,
      shall be finally settled by the HKIAC pursuant to UNCITRAL Rules with the
      Company, on the one hand, being entitled to designate one arbitrator, and
      with the Holder, on the other hand, being entitled to designate one
      arbitrator, while the third arbitrator will be selected by agreement
      between the two designated arbitrators or, failing such agreement within
      10 calendar days of initial consultation between the two arbitrators, by
      the HKIAC pursuant to its arbitration rules.  If either the
      Holder or the Company fails to designate its arbitrator within 20 calendar
      days after the designation of the first of the three arbitrators, the
      HKIAC shall have the authority to designate any person whose interests are
      neutral to the Holder and the Company as the second of the three
      arbitrators.  The arbitration shall be conducted in
      English.  To the extent consistent with UNCITRAL rules, the
      Holder and the Company shall cooperate with the other in provision of
      information during any discovery process relating to arbitrations in
      connection with this Note.  The Holder and the Company hereto
      further agree that, to the extent consistent with UNCITRAL rules, the
      Holder and the Company shall be entitled to seek temporary and permanent
      injunctive relief from the arbitrators without the necessity of proving
      actual damages and without posting a bond or other security.  To
      the extent permitted by applicable law, the Holder and the Company hereby
      unconditionally waive trial by jury in any legal action or proceeding
      relating to this Note or the transactions contemplated
      hereby.  The Holder and the Company agree that notice may be
      served upon the other at the address and in the manner set forth in
      Section 9
hereof.

            

    

    

    
      	
              9.

            	
              Notices.  Any
      notice, request, instruction or other document to be given hereunder will
      be in writing and will be deemed to have been duly given (a) on the
      date of delivery if delivered personally, or by facsimile, upon
      confirmation of receipt, or (b) on the second Business Day following
      the date of dispatch if delivered by a recognized next day courier
      service.  All notices hereunder shall be delivered as set forth
      below, or pursuant to such other instructions as may be designated in
      writing by the Holder or the Company, as applicable, to receive such
      notice.

            

    

    

    (A)     If
to the Company, to:

     

    
      
        
          
            	
                    KongZhong
      Corporation

                  
	
                    35Th
      Floor, Tengda Plaza

                  
	
                    No.
      168 Xizhimenwai Street

                  
	
                    Beijing
      100044

                  
	
                    People’s
      Republic of China

                  
	
                    Attention:
      Chief Financial Officer

                  
	
                    Facsimile:
      (+86-10) 8857-5891

                  

          

           

        

      

    

    
      
        
        

      

      
        - 7
-

        
          

        

      

      
        
        

      

    

     

    with a
copy to (which copy alone shall not constitute notice):

     

    
      
        
          	
                  Sullivan
      & Cromwell LLP

                
	
                  Suite
      501, Tower 1, China World Trade Center

                
	
                  One
      Jian Guo Men Wai Avenue

                
	
                  Beijing
      100004

                
	
                  People’s
      Republic of China

                
	
                  Attention:
      Robert Chu

                
	
                  Facsimile:
      (+86-10) 5923-5950

                

        

         

      

      (B)    
 If to the Investor to:

    

     

    
      
        	
                Nokia
      Growth Partners II, L.P.

              
	
                c/o
      N.G. Partners II L.L.C., its general partner

              
	
                545 Middlefield Road, Suite
      210

              
	
                Menlo Park, CA
      94025

              
	
                United States of
      America

              
	
                Attention:  John
      Gardner

              
	
                Facsimile:
      (+1-650)
  462-7252

              

      

       

    

    
      with a
copy to (which copy alone shall not constitute notice):

       

    

    
      
        	
                Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP

              
	
                1200
      Seaport Blvd.

              
	
                Redwood
      City, CA  94063

              
	
                United
      States of America

              
	
                Attention:  Brian
      C. Patterson

              
	
                Facsimile:
      (+1-650) 321-2800

              

      

    

    

    
      	
              10.

            	
              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 day that is a Business Day;
      provided,
      if any Interest Payment Date would otherwise be a day which is not a
      Business Day, and such Interest Payment Date is delayed as a result
      thereof, no additional interest shall be payable on account of such
      delayed payment.

            

    

    

    
      	
              11.

            	
              Binding
      Effect.  This Note shall be binding upon any successors
      or assigns of the Company.

            

    

    

    
      	
              12.

            	
              Amendments.  This
      Note may be amended and the observance of any term of this Note may be
      waived only with the written consent of the Company and the
      Holder.

            

    

    

    
      	
              13.

            	
              Terms Defined in the
      Purchase Agreement.  All capitalized terms used in this
      Note, but not otherwise defined herein, shall have the respective meanings
      indicated in the Purchase
Agreement.

            

    

     

    
      
        
        

      

      
        - 8
-

        
          

        

      

      
        
        

      

    

     

    
      	
              14.

            	
              Entire
      Agreement. This Note and Exhibit A attached hereto, and the
      Purchase Agreement (and the other documents referenced in Section 5.7 of
      the Purchase Agreement), constitute the entire agreement among the
      parties, and supersede all other prior agreements, understandings,
      representations and warranties, both written and oral, among the parties,
      with respect to the subject matter
hereof.

            

    

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    [FORM OF
CONVERSION NOTICE]

    

    If you
want to convert this Note into Ordinary Shares of the Company, check the
box:  ð

    

    To
convert only part of this Note, state the outstanding Principal Amount to be
converted (which must be US$1,783,000 or above):

    

    US$

    

    Please
fill in the form below:

    

    
      
        
          	
                  (Insert
      the social security or tax ID no. of the person in whose name the Ordinary
      Shares should be issued)

                
	 
      
	
                  (Print
      or type such person’s name, address and zip code and the address and other
      appropriate delivery information to which the Ordinary Shares should be
      delivered, if
different)

                

        

      

    
      
        
          
            
              
                
                  
                    	
                            Date:

                          	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          	 
      
	 
      	 
      	
                            Title:

                          	 
      

                  

                

              

            

          

        

      

    

     

    NOTICE:
The name of the signatory must correspond with the name as written upon the face
of this Note or its Permitted Transferee in every particular, without alteration
or any change whatsoever.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
B: FORM OF WARRANT

     

    THE
WARRANT REPRESENTED BY THIS INSTRUMENT AND THE SECURITIES ISSUABLE UPON THE
EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT
RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH
LAWS.

     

    THIS
INSTRUMENT IS ISSUED PURSUANT TO AND SUBJECT TO THE RESTRICTIONS ON TRANSFER AND
OTHER PROVISIONS OF A NOTE AND WARRANT PURCHASE AGREEMENT, DATED AS OF MARCH 18,
2009, AMONG THE ISSUER OF THESE SECURITIES, THE SPONSOR AND THE INVESTOR
REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE ISSUER. THE SECURITIES
REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT
IN COMPLIANCE WITH SAID AGREEMENT.  ANY SALE OR OTHER TRANSFER NOT IN
COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.

     

    WARRANT

     

    to
purchase

     

      
        

      

    

     

    Ordinary
shares

     

    of

     

    KONGZHONG
CORPORATION

    an
exempted limited liability company incorporated under the laws of the Cayman Islands

     

    
      Issue
Date:  March 18, 2009

       

    

    
      1.    
Definitions.
Unless the context otherwise requires, when used herein, the following terms
shall have the respective meanings indicated, and capitalized terms not
otherwise defined herein shall have the respective meanings indicated in the
Purchase Agreement.

    

     

    “Business Combination”
means a merger, consolidation, statutory share exchange, sale, transfer or
exclusive license of all or substantially all of assets or shares or similar
transaction that requires the approval of the Company’s shareholders or other
transactions or series of transactions that otherwise result in a change in
control of the Company.

     

    
      
        
        

      

      
        - 11
-

        
          

        

      

      
        
        

      

    

     

    “Business Day” means any day except Saturday, Sunday
and any day which shall be a legal holiday or a day on which banking
institutions in the City of New York, New York, United States of America, or
Beijing, People’s Republic of China generally are authorized or required by law
or other governmental actions to close.

     

    “Company” means
KongZhong Corporation, an exempted limited liability company incorporated under
the laws of the Cayman Islands.

     

     “Exchange Act” means
the Securities Exchange Act of 1934, as amended, or any successor statute, and
the rules and regulations promulgated thereunder.

     

    “Exercise Price” means
US$0.125 per Ordinary Share.

     

    “Expiration Time” has
the meaning set forth in Section 3.

     

     “HKIAC” has the
meaning ascribed to it in the Purchase Agreement.

     

    “Ordinary Shares”
means the ordinary shares of the Company, par value US$0.0000005 per
share.

     

    “Permitted Transferee”
has the meaning ascribed to it in the Purchase Agreement.

     

    “Purchase Agreement”
means the Note and Warrant Purchase Agreement, dated as of March 18, 2009, as
amended from time to time, among the Company, Leilei Wang, as the Sponsor, and
the Warrantholder, including all annexes thereto.

     

    “Securities Act” means
the Securities Act of 1933, as amended, or any successor statute, and the rules
and regulations promulgated thereunder.

     

    “Transaction
Documents” has the meaning ascribed to it in the Purchase
Agreement.

     

     “Warrantholder” has
the meaning set forth in Section 2.

     

    “Warrant” means this
Warrant, issued pursuant to the Purchase Agreement.

     

    
      2.    
Number
of Shares; Exercise Price. This certifies that, for value
received, Nokia Growth Partners II, L.P. or its Permitted Transferee, as the
case may be as the holder of this Warrant (the “Warrantholder”), is entitled, upon the
terms and subject to the conditions hereinafter set forth, to acquire from the
Company up to an aggregate of 80,000,000 Ordinary Shares, at a purchase price
per Ordinary Share equal to the Exercise Price. The number of Ordinary Shares
and the Exercise Price are subject to adjustment as provided herein, and all
references to “Ordinary Shares” and “Exercise Price” herein shall be deemed to
include any such adjustment or series of adjustments.

      

      3.    
Exercise of
Warrant; Term. To the extent permitted by applicable laws and
regulations, the right to purchase the Ordinary Shares represented by this
Warrant is exercisable , in whole but not in part by the Warrantholder, at any
time after the execution and delivery of this Warrant by the Company on the date
hereof, but in no event later than 5:00 p.m., New York City time, March 18, 2014
(the “Expiration Time”), by (A)
the surrender of this Warrant and the delivery of the Notice of Exercise annexed
hereto, duly completed and executed on behalf of the Warrantholder, at the
principal executive office of the Company located at 35th Floor, Tengda Plaza,
No. 168 Xizhimenwai Street, Beijing 100044, People’s Republic of China (or such
other office or agency of the Company as it may designate by notice in writing
to the Warrantholder) and (B) payment of the Exercise Price for the Ordinary
Shares thereby purchased at the election of the Warrantholder by wire transfer
of immediately available funds to an account designated by the
Company.

    

     

    
      
        
        

      

      
        - 12
-

        
          

        

      

      
        
        

      

    

     

    4.    
Issuance
of Shares; Authorization. The Company shall enter the
Warrantholder in the Company’s Register of Members as the holder of the Ordinary
Shares issued upon the exercise of this Warrant, and certificates for Ordinary
Shares issued upon exercise of this Warrant will be issued in the name of the
Warrantholder and delivered to the Warrantholder, in each case, as promptly as
is reasonably practicable, not to exceed five Business Days after the date on
which this Warrant has been duly exercised in accordance with the terms of this
Warrant. The Company hereby represents and warrants that any Ordinary Shares
issuable upon the exercise of this Warrant in accordance with the provisions of
Section 3 will be duly authorized and when issued upon exercise of this Warrant
against payment therefor in accordance with the terms of this Warrant, will be
validly issued, fully paid and non-assessable.

    
      

      5.    
No Fractional
Shares or Scrip. No fractional Ordinary Shares or scrip
representing fractional Ordinary Shares shall be issued upon any exercise of
this Warrant. In lieu of any fractional Ordinary Share to which the
Warrantholder would otherwise be entitled, the Warrantholder shall be entitled
to receive a cash payment therefore on the basis of the Exercise
Price.

      

      6.    
No
Rights as Shareholders. This Warrant does not entitle the
Warrantholder to any voting rights or other rights as a shareholder of the
Company prior to the date of exercise hereof.

      

      7.    
Transfer/Assignment.

       

    

    (A) 
 Neither this Warrant nor any rights hereunder are transferable, without
the prior written consent of the Company.  Notwithstanding the
foregoing, this Warrant may be transferred to the Permitted Transferee without
the prior written consent of the Company in accordance with Section 4.5(b) of
the Purchase Agreement.  In the event that this Warrant is transferred
to the Permitted Transferee or to another transferee with the consent of the
Company, a new warrant shall be made and delivered by the Company, of the same
tenor and date as this Warrant but registered in the name of the such
transferee, upon surrender of this Warrant, duly endorsed, to the office or
agency of the Company described in Section 3.

     

    (B)  
This Warrant and any rights hereunder, and any Ordinary Shares issued upon
exercise of this Warrant, shall be subject to the applicable restrictions and
other terms and conditions set forth in the Purchase Agreement.

     

    (C)   If
and for so long as required by the Purchase Agreement, this Warrant certificate
shall contain a legend as set forth in Section 2.3(e) of the Purchase
Agreement.

     

    
      8.    
Loss,
Theft, Destruction or Mutilation of Warrant. Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and in the case of any such loss,
theft or destruction, upon receipt of a bond, indemnity or security reasonably
satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of this Warrant, the Company shall make and deliver,
in lieu of such lost, stolen, destroyed or mutilated Warrant, a new warrant of
like tenor and representing the right to purchase the same aggregate number of
Ordinary Shares as provided for in such lost, stolen, destroyed or mutilated
Warrant.

       

    

    
      
        
        

      

      
        - 13
-

        
          

        

      

      
        
        

      

    

     

    9.    
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 day that is a Business Day.

    
      

      10.  
Adjustments
and Other Rights. The Exercise Price and the number of
Ordinary Shares issuable upon exercise of this Warrant shall be subject to
adjustment from time to time as follows; provided, that if more than one
subsection of this Section 10 is applicable to a single event, no single event
shall cause an adjustment under more than one subsection of this Section 10 so
as to result in duplication:

       

    

    (A)   Stock Splits, Subdivisions,
Reclassifications or Combinations.  If the Company shall (i)
declare and pay a dividend or make a distribution in Ordinary Shares to all
holders of its outstanding Ordinary Shares, (ii) subdivide or reclassify the
outstanding Ordinary Shares into a greater number of shares or (iii) combine or
reclassify the outstanding Ordinary Shares into a smaller number of shares, the
number of Ordinary Shares issuable upon exercise of this Warrant at the time of
the record date for such dividend or distribution or the effective date of such
subdivision, combination or reclassification shall be proportionately adjusted
so that the Warrantholder after such date shall be entitled to purchase the
number of Ordinary Shares which such holder would have owned or been entitled to
receive in respect of the Ordinary Shares subject to this Warrant after such
date had this Warrant been exercised immediately prior to such date. In such
event, the Exercise Price in effect at the time of the record date for such
dividend or distribution or the effective date of such subdivision, combination
or reclassification shall be adjusted to the number obtained by dividing (x) the
product of (1) the number of Ordinary Shares issuable upon the exercise of this
Warrant before such adjustment and (2) the Exercise Price in effect immediately
prior to the record or effective date, as the case may be, for the dividend,
distribution, subdivision, combination or reclassification giving rise to this
adjustment by (y) the new number of Ordinary Shares issuable upon exercise of
the Warrant determined pursuant to the immediately preceding
sentence.

     

    (B)   Business
Combinations.  In case of any Business Combination or
reclassification of the Ordinary Shares (other than a reclassification of
Ordinary Shares referred to in Section 10(A)), the Warrantholder’s right to
receive Ordinary Shares upon exercise of this Warrant shall be converted into
the right to exercise this Warrant to acquire the number of shares or other
securities or property which the Ordinary Shares issuable (at the time of such
Business Combination or reclassification) upon exercise of this Warrant
immediately prior to such Business Combination or reclassification would have
been entitled to receive upon consummation of such Business Combination or
reclassification; and in any such case, if necessary, the provisions set forth
herein with respect to the rights and interests thereafter of the Warrantholder
shall be appropriately adjusted so as to be applicable, as nearly as may
reasonably be, to the Warrantholder’s right to exercise this Warrant in exchange
for any shares or other securities or property pursuant to this
paragraph.  In determining the kind and amount of shares, securities
or the property receivable upon exercise of this Warrant following the
consummation of such Business Combination, if the holders of Ordinary Shares
have the right to elect the kind or amount of consideration receivable upon
consummation of such Business Combination, then the Warrantholder shall have the
right to make a similar election (including, without limitation, being subject
to similar proration constraints) upon exercise of this Warrant with respect to
the number of shares or other securities or property which the Warrantholder
will receive upon exercise of this Warrant.

     

    
      
        
        

      

      
        - 14
-

        
          

        

      

      
        
        

      

       

    

    (C)   Rounding of Calculations;
Minimum Adjustments.  All calculations under this Section 10
shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest
one-hundredth (1/100th) of a share, as the case may be. Any provision of this
Section 10 to the contrary notwithstanding, no adjustment in the Exercise Price
or the number of Ordinary Shares into which this Warrant is exercisable shall be
made if the amount of such adjustment would be less than US$0.01 or one-tenth
(1/10th) of an Ordinary Share, but any such amount shall be carried forward and
an adjustment with respect thereto shall be made at the time of and together
with any subsequent adjustment which, together with such amount and any other
amount or amounts so carried forward, shall in the aggregate be US$0.01 or
1/10th of an Ordinary Share, or more.

     

    (D)   Timing of Issuance of
Additional Ordinary Shares Upon Certain Adjustments.  In any
case in which the provisions of this Section 10 shall require that an adjustment
shall become effective immediately after a record date for an event, the Company
may defer until the occurrence of such event (i) issuing to the Warrantholder of
this Warrant exercised after such record date and before the occurrence of such
event the additional Ordinary Shares issuable upon such exercise by reason of
the adjustment required by such event over and above the Ordinary Shares
issuable upon such exercise before giving effect to such adjustment and (ii)
paying to such Warrantholder any amount of cash in lieu of a fractional Ordinary
Share; provided, however, that the
Company upon request shall deliver to such Warrantholder a due bill or other
appropriate instrument evidencing such Warrantholder’s right to receive such
additional shares, and such cash, upon the occurrence of the event requiring
such adjustment.

     

    (E)   Notice of Adjustment
Event.  In the event that the Company shall propose to take any
action of the type described in this Section 10 (but only if the action of the
type described in this Section 10 would result in an adjustment in the Exercise
Price or the number of Ordinary Shares into which this Warrant is exercisable or
a change in the type of securities or property to be delivered upon exercise of
this Warrant), the Company shall give prompt notice to the Warrantholder, in the
manner set forth in Section 14, which notice shall specify the record date, if
any, with respect to any such action and the approximate date on which such
action is to take place. Such notice shall also set forth the facts with respect
thereto as shall be reasonably necessary to indicate the effect on the Exercise
Price and the number, kind or class of shares or other securities or property
which shall be deliverable upon exercise of this Warrant. In the case of any
action which would require the fixing of a record date, such notice shall be
given at least five Business Days prior to the date so fixed, and in case of all
other action, such notice shall be given at least 10 Business Days prior to the
taking of such proposed action. Failure to give such notice, or any defect
therein, shall not affect the legality or validity of any such
action.

     

    (F)   Adjustment
Rules.  Any adjustments pursuant to this Section 10 shall
be made successively whenever an event referred to herein shall occur. If an
adjustment in Exercise Price made hereunder would reduce the Exercise Price to
an amount below the par value of the Ordinary Shares, then such adjustment in
Exercise Price made hereunder shall reduce the Exercise Price to the par value
of the Ordinary Shares.

     

    
      11.   Governing
Law. This Warrant will be governed
by and construed in accordance with the laws of the State of New York, without
giving effect to the conflict of laws principles thereof. The Warrantholder and
the Company agree that all disputes arising in connection with this Warrant, or
the breach, termination, interpretation or validity thereof, shall be finally
settled by the HKIAC pursuant to UNCITRAL Rules with the Company, on the one
hand, being entitled to designate one arbitrator, and with the Warrantholder, on
the other hand, being entitled to designate one arbitrator, while the third
arbitrator will be selected by agreement between the two designated arbitrators
or, failing such agreement within 10 calendar days of initial consultation
between the two arbitrators, by the HKIAC pursuant to its arbitration rules. If
the Warrantholder or the Company fails to designate its arbitrator within 20
calendar days after the designation of the first of the three arbitrators, the
HKIAC shall have the authority to designate any person whose interests are
neutral to the Warrantholder and the Company as the second of the three
arbitrators. The arbitration shall be conducted in English. To the extent
consistent with UNCITRAL rules, the Warrantholder and the Company shall
cooperate with the other in provision of information during any discovery
process relating to arbitrations in connection with this Warrant. The
Warrantholder and the Company further agree that, to the extent consistent with
UNCITRAL rules, the Warrantholder and the Company shall be entitled to seek
temporary and permanent injunctive relief from the arbitrators without the
necessity of proving actual damages and without posting a bond or other
security. To the extent permitted by applicable law, the Warrantholder and the
Company hereby unconditionally waive trial by jury in any legal action or
proceeding relating to this Warrant or the transactions contemplated hereby. The
Warrantholder and the Company agree that notice may be served at the address and
in the manner set forth in Section 14.

       

    

    
      
        
        

      

      
        - 15
-

        
          

        

      

      
        
        

      

    

     

    
      12.  
Binding
Effect. This Warrant shall be binding upon any successors
or assigns of the Company.

      

      13.  
Amendments.
This Warrant may be amended and the observance of any term of this Warrant may
be waived only with the written consent of the Company and the
Warrantholder.

      

      14.  
Notices.
Any notice, request, instruction or other document to be given hereunder by any
party to the other will be in writing and will be deemed to have been duly given
(a) on the date of delivery if delivered personally, or by facsimile, upon
confirmation of receipt, or (b) on the second Business Day following the date of
dispatch if delivered by a recognized next day courier service. All notices
hereunder shall be delivered as set forth below, or pursuant to such other
instructions as may be designated in writing by the party to receive such
notice.

    

     

    
      
        
        

      

      
        - 16
-

        
          

        

      

      
        
        

      

    

     

    
      (A)                       If
to the Company, to:

       

      
        
          
            	
                    KongZhong
      Corporation

                  
	
                    35th
      Floor, Tengda Plaza

                  
	
                    No.
      168 Xizhimenwai Street

                  
	
                    Beijing
      100044

                  
	
                    People’s
      Republic of China

                  
	
                    Attention:
      Chief Financial Officer

                  
	
                    Facsimile:
      (+86-10) 8857
5891

                  

          

        

      

    

    
      
         

        with
a copy to (which copy alone shall not constitute notice):

        
           

          
            
              
                	
                        Sullivan
      & Cromwell LLP

                      
	
                        Suite
      501, Tower 1, China World Trade Center

                      
	
                        One
      Jian Guo Men Wai Avenue

                      
	
                        Beijing
      100004

                      
	
                        People’s
      Republic of China

                      
	
                        Attention:
      Robert Chu

                      
	
                        Facsimile:
      (+86-10) 5923 5950

                      

              

               

            

          

        

      

    

    
      (B)                       If
to the Investor to:

    

     

    
      
        	
                Nokia
      Growth Partners II, L.P.

              
	
                c/o
      N.G. Partners II L.L.C., its general partner

              
	
                545 Middlefield Road, Suite
      210

              
	
                Menlo Park, CA
      94025

              
	
                United States of
      America

              
	
                Attention:  John
      Gardner

              
	
                Facsimile:
      (+1-650)
    462-7252

              

      

    

    

    
      
        
        

      

      
        - 17
-

        
          

        

      

      
        
        

      

    

     

    with a copy to (which copy alone shall not
constitute notice):

     

    
      
        	
                Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP

              
	
                1200
      Seaport Boulevard

              
	
                Redwood
      City, CA  94063

              
	
                United
      States of America

              
	
                Attention:  Brian
      C. Patterson

              
	
                Facsimile:
      (+1-650) 321-2800

              

      

       

    

    
      15.  
Entire
Agreement. This Warrant and the form attached hereto, and
the Purchase Agreement (and the other documents referenced in Section 5.7 of the
Purchase Agreement), constitute the entire agreement among the parties, and
supersede all other prior agreements, understandings, representations and
warranties, both written and oral, among the parties, with respect to the
subject matter hereof.

    

     

    
      
         

      

      
        - 18
-

        
          

        

      

      
         

      

    

     

    [FORM OF NOTICE OF
EXERCISE]

     

    DATE:  _________

     

    TO:  KongZhong
Corporation

     

    RE:  Election
to Purchase Ordinary Shares

     

    The
undersigned, pursuant to the provisions set forth in the attached Warrant,
hereby agrees to subscribe for and purchase the number of Ordinary Shares set
forth below covered by such Warrant.  The undersigned, in accordance
with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise
Price for such Ordinary Shares.

     

    Number of
Ordinary Shares: ____________________

     

    Aggregate
Exercise Price: _____________________________________]

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Holder:

                              	____________________________________________
	
                                By:

                              	____________________________________________
	
                                Name:

                              	____________________________________________
	
                                Title:

                              	____________________________________________

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        - 19
-

        
          

        

      

      
        
        

      

       

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a
duly authorized officer.

     

    Dated:
March __,
2009

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                KONGZHONG
      CORPORATION

                              
	 	 
	
                                By:

                              	 
      
	 
      	
                                Name:

                              
	 
      	
                                Title:

                              
	 	 
	
                                Attest:

                              
	 	 
	
                                By:

                              	 
      
	 
      	
                                Name:

                              
	 
      	
                                Title:

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    
      [Signature
page to warrant]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      ANNEX C: FORM OF REGISTRATION RIGHTS
AGREEMENT

       

      
        
          

          

        

        Registration  Rights
Agreement

      

      

      Dated
March 18, 2009

      

      by and
between

      

      KongZhong
Corporation

      

      and

      

      Nokia
Growth Partners II, L.P.

       

    

    
      

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
OF CONTENTS

     

    
      
        
          
            
              
                	 
      	 
      	
                      	 
      	
                        
                          Page

                        

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Recitals

                      	 
      	
                        
                           

                        

                      	 
      	
                        
                          1

                        

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Section
      1.

                      	 
      	
                        Certain
      Definitions.

                      	 
      	
                        1

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Section
      2.

                      	 
      	
                        F-3
      Registration.

                      	 
      	
                        3

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Section
      3.

                      	 
      	
                        Registration Procedures

                      	 
      	
                        4

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Section
      4.

                      	 
      	
                        Piggyback
      Registrations.

                      	 
      	
                        6

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Section
      5.

                      	 
      	
                        Registration
      Expenses.

                      	 
      	
                        7

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Section
      6.

                      	 
      	
                        Indemnification.

                      	 
      	
                        7

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Section
      7.

                      	 
      	
                        Securities Act Restrictions

                      	 
      	
                        9

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Section
      8.

                      	 
      	
                        Transfers
      of Rights.

                      	 
      	
                        9

                      
	 
      	 
      	 
      	 
      	 
      
	
                        Section
      9.

                      	 
      	
                        Miscellaneous.

                      	 
      	
                        10

                      

              

            

          

        

      

    

    

      
        
           

        

        
          -i-

          
            

          

        

        
           

        

      

    

     

    Registration  Rights
Agreement, dated March 18, 2009, by and between KongZhong Corporation, an
exempted limited liability company incorporated under the laws of the Cayman
Islands (the “Company”), and Nokia
Growth Partners II, L.P., a Delaware limited partnership (the “Investor”).

     

    Recitals:

     

    WHEREAS:

     

    A.          The
Company and the Investor are parties to a Note and Warrant Purchase Agreement,
dated as of March 18, 2009, pursuant to which the Company desires to issue
and sell to the Investor (i) US$6,775,400 aggregate principal
amount of the Company’s Convertible Senior Note Due 2014 (the “Note”) and (ii) a
warrant to purchase 80,000,000 ordinary shares of the Company, par value
US$0.0000005 per share (the “Ordinary Shares”)
(such warrant, the “Warrant”), and the
Investor desires to purchase from the Company the Note and the Warrant;
and

     

    B.           In
connection with the consummation of the transactions contemplated by the
Purchase Agreement, the parties hereto desire to enter into this Agreement in
order to create certain registration rights for the Investor as set forth
below;

     

    NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein and other
good and valid consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

     

    Section
1.     Certain
Definitions.

     

    In
addition to the terms defined elsewhere in this Agreement, the following terms
shall have the following meanings:

     

    “Agreement” means this
Registration Rights Agreement, including all amendments, modifications and
supplements and any exhibits or schedules to any of the foregoing, and shall
refer to this Registration Rights Agreement as the same may be in effect at the
time such reference becomes operative.

     

    “Business Combination”
means a merger, consolidation, statutory share exchange, sale, transfer or
exclusive license of all or substantially all of assets or shares or similar
transaction that requires the approval of the Company’s shareholders or other
transactions or series of transactions that otherwise result in a change in
control of the Company.

     

    “Commission” means the
United States Securities and Exchange Commission or any successor
agency.

     

    “Company” has the
meaning set forth in the Preamble.

     

    “Effectiveness Period”
means the period from and including the date as of which the Shelf Registration
Statement becomes effective until the Note Shares, the Warrant Shares and any
securities issued by the Company after the date hereof in respect of the Note
Shares or the Warrant Shares by way of a share dividend or share split or in
connection with a combination, subdivision or reclassification of the Ordinary
Shares or a Business Combination have ceased to be Registrable
Shares.

    

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    “Governmental Entity”
means any United States of America, People’s Republic of China and other
national, state, provincial, local and other governmental or regulatory
authority.

     

    “HKIAC” has the
meaning set forth in Section 9(e)(ii).

     

    “Investor” has the
meaning set forth in the Preamble.  References herein to the Investor
shall apply to the Permitted Transferee or any other transferee as consented to
by the Company pursuant to Section 8.

     

    “Issue Date” means the
date of original issuance of the Note and the Warrant.

     

    “Note” has the meaning
set forth in Recital A hereto.

     

    “Note Shares” means
the Ordinary Shares acquired by the Investor upon conversion of the
Note.

     

    “Ordinary Shares” has
the meaning set forth in Recital A hereto.

     

    “Person” means any
individual, corporation, trust, association, company, partnership, joint
venture, limited liability company, joint stock company, Governmental Entity or
other entity.

     

    “Permitted Transferee”
means Nokia Corporation.

     

    “Piggyback
Registration” has the meaning set forth in
Section 4(a).

     

    “Prospectus” means the
prospectus or prospectuses (whether preliminary or final) included in any
Registration Statement and relating to Registrable Shares, as amended or
supplemented and including all materials incorporated by reference in such
prospectus or prospectuses.

     

    “Purchase Agreement”
means the Note and Warrant Purchase Agreement specified in Recital A hereto, as
such agreement may be amended from time to time.

     

    “Registrable Shares”
means, at any time, (i) the Note Shares, (ii) the Warrant Shares and
(iii) any securities issued by the Company after the date hereof in respect
of the Note Shares or the Warrant Shares by way of a share dividend or share
split or in connection with a combination, subdivision or reclassification of
the Ordinary Shares or a Business Combination, but excluding (iv) any and
all Note Shares and Warrant Shares and other securities referred to in clauses
(i), (ii) and (iii) that at any time after the date hereof (a) have been
sold pursuant to an effective Registration Statement or Rule 144 under the
Securities Act, (b) have been sold in any other transaction such that a
subsequent public distribution of such securities would not require registration
under the Securities Act, (c) are eligible for sale pursuant to Rule 144
under the Securities Act without limitation thereunder on volume or manner of
sale, (d) are not outstanding or (e) have been transferred in
violation of Section 8 hereof or any provision of the Purchase
Agreement.  It is acknowledged that, once a security of the kind
described in any of clauses (i), (ii) and (iii) above becomes a security of
the kind described in clause (iv) above, such security shall cease to be a
Registrable Share for all purposes of this Agreement and the Company’s
obligations regarding Registrable Shares hereunder shall cease to apply with
respect to such security.

    

    “Registration
Expenses” has the meaning set forth in Section 5(a).

     

    “Registration
Statement” means any registration statement of the Company which covers
any of the Registrable Shares pursuant to this Agreement, including the
Prospectus, and any pre-effective or post-effective amendments and supplements
to such Registration Statement, all exhibits and all documents incorporated by
reference in such Registration Statement.

    

    
      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

    

    “Securities Act” means
the Securities Act of 1933, as amended.

     

    “Shelf Registration
Statement” has the meaning set forth in Section 2(a).

     

    “Shelf Takedown” has
the meaning set forth in Section 2(b).

     

    “Suspension Period”
has the meaning set forth in Section 3(f).

     

    “Warrant” has the
meaning set forth in Recital A hereto.

     

    “Warrant Shares” means
the Ordinary Shares acquired by the Investor upon exercise of the
Warrant.

     

    In
addition to the above definitions, unless the context requires
otherwise:

     

    (i)       
all references to any statute, rule or regulation are to the statute, rule or
regulation as amended, modified, supplemented or replaced from time to time
(and, in the case of any statute, include any rules and regulations promulgated
under such statute) and to any section of any statute, rule or regulation
include any successor to the section;

     

    (ii)      
whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed followed by the words “without
limitation”;

     

    (iii)     
when a reference is made in this Agreement to “Recitals” or “Sections”, such
reference shall be to a Recital or Section of this Agreement unless otherwise
indicated;

     

    (iv)     
references to “herein”, “hereof”, “hereunder” and the like refer to this
Agreement as a whole and not to any particular section or provision, unless the
context requires otherwise;

     

    (v)      
references to “Business Day” shall mean any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
City of New York, New York, United States of America, or Beijing, People’s
Republic of China generally are authorized or required by law or other
governmental actions to close;

     

    (vi)     
all references to “US$” mean the lawful currency of the United States of
America; and

     

    (vii)    
the table of contents and headings contained in this Agreement are for reference
purposes only and are not part of this Agreement.

     

    Section
2.      F-3
Registration.

     

    (a)       Initial Registration.
Subject to the other provisions of this Agreement and the eligibility of the
Company to use Form F-3, the Company shall use reasonable best efforts to
prepare and file or cause to be prepared and filed with the Commission, as soon
as practicable but in any event by the date that is 60 calendar days after the
Issue Date, a Registration Statement on Form F-3 for an offering to be made on a
delayed or continuous basis pursuant to Rule 415 of the Securities Act
registering the resale from time to time of the Registrable Shares by the
Investor (the “Shelf
Registration Statement”).

    

    
      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

    

    (b)      Right to Effect Shelf
Takedowns.  The Investor shall be entitled, at any time and
from time to time when a Shelf Registration Statement is effective and until the
expiration of the Effectiveness Period, to sell such Registrable Shares as are
then registered pursuant to such Shelf Registration Statement (each, a “Shelf Takedown”).
 The Investor shall provide written notice to the Company of any plan to
sell any Registrable Shares not less than 10 Business Days prior
to the intended date of the first sale under such plan.  Such notice
shall set forth the plan of sale for a period of 60 calendar days
(or such other period upon which the
Investor and the Company may mutually agree).  The Investor shall
provide the Company with a new notice in accordance with the preceding two
sentences prior to any sale of Registrable Shares after the
expiration of the initial 60-day period (or
such period upon which the Investor and the Company may mutually
agree).  It is acknowledged that,
notwithstanding any other provisions herein, such Shelf Takedowns are not
expected to be underwritten.

     

    Section 3.     
Registration
Procedures.  (a) In
connection with the registration obligations of the Company under Section 2
hereof,
the Company shall:

     

    
      
        
          	
                	
                  (i)

                	
                  subject
      to the other provisions of this Agreement, use its reasonable best efforts
      to cause the Shelf Registration Statement to be declared effective under
      the Securities Act as promptly as is practicable but in any event by the
      date that is 120 calendar days after the Issue Date and to keep the Shelf
      Registration Statement continuously effective under the Securities Act
      until the expiration of the Effectiveness Period.  At the time
      the Shelf Registration Statement is declared effective, the Investor shall
      be named as a selling security holder in the Shelf Registration Statement
      and the related Prospectus in such a manner as to permit the Investor to
      deliver such Prospectus to purchasers of Registrable Shares in accordance
      with applicable law;

                

        

      

    

     

    
      
        
          	
                	
                  (ii)

                	
                  use
      reasonable best efforts to prepare and file with the Commission such
      amendments and supplements to such Shelf Registration
      Statementand
      the Prospectus used in connection therewith as may be necessary to comply
      with the applicable requirements of the Securities Act and to keep such
      Shelf Registration Statement effective until the expiration of the
      Effectiveness Period, and to comply with the applicable requirements of
      the Securities Act with respect to the disposition of all the Registrable
      Shares covered by such Shelf Registration Statement until the expiration
      of the Effectiveness Period in accordance with the intended methods of
      disposition set forth in such Shelf Registration
  Statement;

                

        

      

    

     

    
      	
            	
              (iii)

            	
              use
      reasonable best efforts to obtain promptly the withdrawal or lifting of
      any order suspending the effectiveness of the Shelf Registration
      Statement;

            

    

     

    
      	
            	
              (iv)

            	
              notify
      the Investor, as soon as reasonably practicable, at any time when a
      Prospectus would be required under the Securities Act to be delivered by a
      distributor, of the occurrence of any event as a result of which the
      Prospectus included in such Registration Statement contains an untrue
      statement of a material fact or omits a material fact necessary to make
      the statements therein, in light of the circumstances under which they
      were made, not misleading, and, at the request of the Investor, use
      reasonable best efforts to prepare, as soon as reasonably practicable, a
      supplement or amendment to such Prospectus so that, as thereafter
      delivered to any prospective purchasers of such Registrable Shares, such
      Prospectus shall not contain an untrue statement of a material fact or
      omit to state any material fact necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading;

            

    

     

    
      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

    

    
       

      
        	
              	
                (v)

              	
                notify
      the Investor, as soon as reasonably practicable, at any time of (A) any
      request by the Commission or any other Governmental Entity for amendments
      or supplements to a Registration Statement or Prospectus and (B) the
      issuance by the Commission or any other Governmental Entity of any stop
      order suspending the effectiveness of a Registration Statement covering
      any or all of the Registrable Shares or the initiation of any proceedings
      for that purpose; and

              

      

    

     

    
      
        	
              	
                (vi)

              	
                cooperate
      with the Investor with respect to the Registrable Shares being offered
      and, to the extent applicable, use reasonable best efforts to facilitate
      the timely preparation and delivery of certificates (not bearing any
      restrictive legend, except as required by applicable law) representing the
      Registrable Shares to be offered and resold pursuant to a Registration
      Statement and enable such certificates to be in such denominations or
      amounts, as the case may be, as the Investor may reasonably
      request.

              

      

    

     

    (b)     
The Company may require the Investor to furnish to the Company information
regarding such Investor and each distributor of the Registrable Shares as to
which any registration is being effected and the distribution of such
Registrable Shares as the Company may from time to time reasonably request in
connection with such registration.

     

    (c)   
  The Investor agrees that, upon being advised in writing by the Company of
the occurrence of an event pursuant to Sections 3(a)(iv) and 3(a)(v), the
Investor will immediately discontinue (and direct any other Persons making
offers and sales of the Registrable Shares to immediately discontinue) offers
and sales of such Registrable Shares pursuant to any Registration Statement
until the Investor is advised in writing by the Company that the use of the
Prospectus may be resumed and is furnished with a supplemented or amended
Prospectus as contemplated by Section 3(a)(iv), and, if so directed by the
Company, the Investor will deliver to the Company all copies of the Prospectus
covering such Registrable Shares current at the time of receipt of such
notice.  The Company will use reasonable best efforts to ensure that
the use of the Prospectus may be resumed as promptly as
practicable.

     

    (d)    
 It is acknowledged that any failure of the Company to file a Registration
Statement or any amendment or supplement thereto or to cause any such document
to become or remain effective until the expiration of the Effectiveness Period,
due to reasons that are not reasonably within its control, or due to any refusal
of the Commission to permit a Registration Statement or Prospectus to become or
remain effective or to be used because of unresolved comments thereon from the
Commission (or on any documents incorporated therein by reference) despite the
Company’s good faith and reasonable best efforts to resolve those comments,
shall not be a breach of this Agreement.

     

    (e)    
 The Investor shall provide, at least five Business Days prior to the
anticipated filing date of the Registration Statement, all requested information
required to be provided by the Investor for inclusion therein.  If the
Investor fails to provide such information at least five Business Days prior to
the anticipated filing date, the Company shall have the right to defer the
filing of the Registration Statement by such an amount of time as it takes to
obtain and reflect in the Registration Statement all information that is
necessary or advisable to be reflected in the Registration Statement and as
would be necessary or advisable under the then-existing market
conditions.  The Investor shall, as soon as reasonably practicable,
notify the Company in the event that any information supplied by the Investor
for inclusion in any Registration Statement or related Prospectus contains an
untrue statement of a material fact or omits to state a material fact necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading, and immediately discontinue (and direct any other
Persons making offers and sales of the Registrable Shares to immediately
discontinue) offers and sales of such Registrable Shares pursuant to such
Registration Statement until the Investor is advised in writing by the Company
that the use of the Prospectus may be resumed and is furnished with a
supplemented or amended Prospectus as contemplated by Section 3(a)(iv),
and, if so directed by the Company, the Investor shall deliver to the Company
all copies of the Prospectus covering such Registrable Shares current at the
time of such notice.

    

    
      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

    

    

    (f)     
The Company may (i) delay the filing or effectiveness of a Registration
Statement or (ii) prior to the pricing of any offering of Registrable
Shares pursuant to a Registration Statement, delay such offering (and, if it so
chooses, withdraw any Registration Statement that has been filed) if the Company
determines in its sole discretion (x) that proceeding with such an offering
would require the Company to disclose material information that would not
otherwise be required to be disclosed at that time and that the disclosure of
such information at that time would not be in the best interests of the Company
or its shareholders or (y) that the registration or offering to be delayed
would, if not delayed, materially and adversely affect the Company and its
subsidiaries, taken as a whole, or materially interfere with, or jeopardize the
success of, any pending or proposed material transaction, including any debt or
equity financing, any acquisition or disposition, any recapitalization or
reorganization or any other material transaction, whether due to commercial
reasons, a desire to avoid premature disclosure of information or any other
reason. Any period during which the Company has delayed a filing, an effective
date or an offering pursuant to this Section 3(f) is herein called a “Suspension
Period”.  The Company shall provide prompt written notice to
the Investor of the commencement and termination of any Suspension Period (and
any withdrawal of a Registration Statement pursuant to this Section 3(f)),
but shall not be obligated under this Agreement to disclose the reasons
therefor.  The Investor shall keep the existence of each Suspension
Period confidential and refrain from making offers and sales of Registrable
Shares (and direct any other Persons making such offers and sales to refrain
from doing so) during each Suspension Period.

    
       

      Section
4.      Piggyback
Registrations.

       

    

    (a)      Right to
Piggyback.

     

    If the
Company proposes to register any Ordinary Shares under the Securities Act (other
than on a registration statement on Form S-8, F-8, S-4 or F-4) at any time
prior to the expiration of the Effectiveness Period, whether for its own account
or for the account of one or more holders of Ordinary Shares (other than the
Investor), and the form of registration statement to be used may be used for any
registration of Registrable Shares (a “Piggyback
Registration”), the Company shall give written notice to the Investor of
its intention to effect such a registration and, subject to Sections 4(b)
and 4(c), shall include in such registration statement and in any offering of
Ordinary Shares to be made pursuant to that registration statement such amount
of Registrable Shares that the Company and the Investor have mutually agreed
upon, with respect to which the Company has received a written request for
inclusion therein from the Investor no more than five Business Days after
the Company’s dispatch of its notice to the Investor or, in the case of a
primary offering, such shorter time as is reasonably specified by the Company in
light of the circumstances, provided that such
amount of Registrable Shares shall account for not less than 20% of the total
number of Ordinary Shares to be so registered.  The Company shall have
no obligation to proceed with any Piggyback Registration and may abandon,
terminate and/or withdraw such registration for any reason at any time prior to
the pricing thereof.

     

    (b)      Priority on Primary
Piggyback Registrations.  If a Piggyback Registration is
initiated as a primary underwritten offering on behalf of the Company and the
managing underwriters advise the Company that in their opinion the number of
Ordinary Shares proposed to be included in such offering exceeds the number of
Ordinary Shares which can be sold in such offering without materially delaying
or jeopardizing the success of the offering (including the price per share of
the Ordinary Shares proposed to be sold in such offering), the Company shall
include in such registration and offering (i) first, the number of Ordinary
Shares that the Company proposes to sell and (ii) second, to the extent the
number of Ordinary Shares which can be sold in such offering without materially
delaying or jeopardizing the success of the offering (including (i)) exceeds the
number of Ordinary Shares proposed under (i), the number of Ordinary Shares
requested to be included therein by holders of Ordinary Shares, including the
Investor (if the Investor has elected to include Registrable Shares in such
Piggyback Registration), pro rata among all such holders on the basis of the
number of Ordinary Shares requested to be included therein by all such holders
or as such holders and the Company may otherwise agree, such that the sum of the
Ordinary Shares proposed under (i) and the number of Ordinary Shares proposed
under (ii) does not exceed the number of Ordinary Shares which can be sold in
such offering without materially delaying or jeopardizing the success of the
offering (including (i)).

    

    
      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

    

    

    (c)      Priority on Secondary
Piggyback Registrations.  If a Piggyback Registration is
initiated as an underwritten registration on behalf of a holder of Ordinary
Shares other than the Investor, and the managing underwriters advise the Company
that in their opinion the number of Ordinary Shares proposed to be included in
such registration exceeds the number of Ordinary Shares which can be sold in
such offering without materially delaying or jeopardizing the success of the
offering (including the price per share of the Ordinary Shares to be sold in
such offering), the Company shall include in such registration the number of
Ordinary Shares requested to be included therein by the holders of Ordinary
Shares, including the Investor (if the Investor has elected to include
Registrable Shares in such Piggyback Registration), pro rata among such holders
on the basis of the number of Ordinary Shares requested to be included therein
by such holders or as such holders and the Company may otherwise agree, such
that the aggregate number of Ordinary Shares proposed to be included in the
offering does not exceed the number of Ordinary Shares which can be sold in such
offering without materially delaying or jeopardizing the success of the
offering.

     

    (d)      Selection of
Underwriters.  If any Piggyback Registration is a primary or
secondary underwritten offering, the Company shall have the sole right and
discretion to select the managing underwriter or underwriters to administer any
such offering.

     

    (e)      Basis of
Participations.  The Investor may not sell Registrable Shares
in any offering pursuant to a Piggyback Registration unless it (a) agrees to
sell such Registrable Shares on the same basis provided in the underwriting or
other distribution arrangements approved by the Company and that apply to the
Company and/or any other holders involved in such Piggyback Registration and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements, lockups and other documents required under the terms of
such arrangements.

     

    
      Section
5.      Registration
Expenses.
All expenses incident to the Company’s performance of or compliance with this
Agreement, including all registration and filing fees, fees and expenses of
compliance with securities laws and printing expenses and fees and disbursements
of counsel for the Company and all independent certified public accountants and
other Persons retained by the Company (such expenses, the “Registration
Expenses”) (but not including any fees attributable to the sale of Registrable
Shares), shall be borne by the Company. The Investor shall bear the cost of all
underwriting discounts and commissions associated with any sale of Registrable
Shares and shall pay all of its own costs and expenses, including all fees and
expenses of any counsel (and any other advisers) representing the Investor, and
any share transfer taxes and duties.

       

      Section
6.      Indemnification.

       

    

    (a)     
The Company shall indemnify, to the fullest extent permitted by law, the
Investor and each Person who controls the Investor (within the meaning of the
Securities Act) against all losses, claims, damages, liabilities, judgments,
costs (including reasonable costs of investigation) and expenses (including
reasonable attorneys’ fees) arising out of or based upon any untrue or allegedly
untrue statement of a material fact contained in any Registration Statement or
Prospectus or any amendment thereof or supplement thereto or arising out of or
based upon any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading,
except insofar as the same are made in reliance and in conformity with
information furnished to the Company by the Investor for use
therein.

    

    
      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

    

    

    (b)     
In connection with any Registration Statement in which the Investor is
participating, the Investor shall furnish to the Company in writing such
information as the Company reasonably requests for use in connection with any
such Registration Statement or Prospectus, or amendment or supplement thereto,
and shall indemnify, to the fullest extent permitted by law, the Company, its
officers and directors and each Person who controls the Company (within the
meaning of the Securities Act) against all losses, claims, damages, liabilities,
judgments, costs (including reasonable costs of investigation) and expenses
(including reasonable attorneys’ fees) arising out of or based upon any untrue
or allegedly untrue statement of material fact contained in the Registration
Statement or Prospectus, or any amendment or supplement thereto, or arising out
of or based upon any omission or alleged omission of a material fact required to
be stated therein or necessary to make the statements therein not misleading,
but only to the extent that the same are made in reliance and in conformity with
information furnished to the Company by or on behalf of the Investor for use
therein.

     

    (c)     
Any Person entitled to indemnification hereunder shall (i) give prompt
written notice to the indemnifying Person of any claim with respect to which it
seeks indemnification and (ii) permit such indemnifying Person to assume
the defense of such claim with counsel reasonably satisfactory to the
indemnified Person.  Failure to so notify the indemnifying Person
shall not relieve it from any liability that it may have to an indemnified
Person except to the extent that the indemnifying Person is materially and
adversely prejudiced thereby.  The indemnifying Person shall not be
subject to any liability for any settlement made by the indemnified Person
without its consent (but such consent shall not be unreasonably
withheld).  An indemnifying Person who is entitled to, and elects to,
assume the defense of a claim shall not be obligated to pay the fees and
expenses of more than one counsel (in addition to one local counsel) for all
Persons indemnified (hereunder or otherwise) by such indemnifying Person with
respect to such claim (and all other claims arising out of the same
circumstances), unless in the reasonable judgment of any indemnified Person,
there may be one or more legal or equitable defenses available to such
indemnified Person which are in addition to or may conflict with those available
to another indemnified Person with respect to such claim, in which case such
maximum number of counsel for all indemnified Persons shall be two rather than
one.  If an indemnifying Person is entitled to, and elects to, assume
the defense of a claim, the indemnified Person shall continue to be entitled to
participate in the defense thereof, with counsel of its own choice, but, except
as set forth above, the indemnifying Person shall not be obligated to reimburse
the indemnified Person for the costs thereof.  The indemnifying Person
shall not consent to the entry of any judgment or enter into or agree to any
settlement relating to a claim or action for which any indemnified Person would
be entitled to indemnification hereunder, unless such judgment or settlement
imposes no ongoing obligations on any such indemnified Person and includes as an
unconditional term the giving, by all relevant claimants and plaintiffs to such
indemnified Person, a release, satisfactory in form and substance to such
indemnified Person, from all liabilities in respect of such claim or action for
which such indemnified Person would be entitled to such
indemnification.  The indemnifying Person shall not be liable
hereunder for any amount paid or payable or incurred pursuant to or in
connection with any judgment entered or settlement effected with the consent of
an indemnified Person unless the indemnifying Person has also consented to such
judgment or settlement.

     

    (d)     
The indemnification provided for under this Agreement shall remain in full force
and effect regardless of any investigation made by or on behalf of the
indemnified Person or any officer, director or controlling Person of such
indemnified Person and shall survive the transfer of securities and the
expiration of the Effectiveness Period but only with respect to offers and sales
of Registrable Shares made before the expiration of the Effectiveness
Period.

     

    (e)     
If the indemnification provided for in or pursuant to this Section 6 is due
in accordance with the terms hereof, but is held by a court to be unavailable or
unenforceable in respect of any losses, claims, damages, liabilities or expenses
referred to herein, then each applicable indemnifying Person, in lieu of
indemnifying such indemnified Person, shall contribute to the amount paid or
payable by such indemnified Person as a result of such losses, claims, damages,
liabilities or expenses in such proportion as is appropriate to reflect the
relative fault of the indemnifying Person, on the one hand, and of the
indemnified Person, on the other hand, in connection with the statements or
omissions which result in such losses, claims, damages, liabilities or expenses
as well as any other relevant equitable considerations.  The relative
fault of the indemnifying Person, on the one hand, and of the indemnified
Person, on the other hand, shall be determined by reference to, among other
things, whether the untrue or allegedly untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to information
supplied by the indemnifying Person or by the indemnified Person, and by such
Person’s relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.  In no event shall the
liability of the indemnifying Person be greater in amount than the amount for
which such indemnifying Person would have been obligated to pay by way of
indemnification if the indemnification provided for under Section 6(a) or
6(b) hereof had been available under the circumstances.

    

    
      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

    

     

    
      Section
7.      Securities
Act Restrictions.
The Registrable Shares are restricted securities under the Securities Act and
may not be offered or sold except pursuant to an effective Registration
Statement or an available exemption from registration under the Securities Act.
Accordingly, the Investor shall not, directly or through others, offer or sell
any Registrable Shares except pursuant to a Registration Statement as
contemplated herein or pursuant to Rule 144 or another exemption from
registration under the Securities Act, if available. Prior to any Transfer of
the Purchased Securities, Note Shares or Warrant Shares, the Investor shall
notify the Company of such Transfer (it being understood that the notification
of any sale of Note Shares and/or Warrant Shares pursuant to an effective
registration statement shall be made in accordance with Section 2(b) of this
Agreement). With respect to any such Transfer (other than pursuant to an
effective registration statement), the Company may require the Investor to
provide, prior to such Transfer, such evidence that the Transfer will comply
with the Securities Act (including written representations and an opinion of
counsel) as the Company may reasonably request. The Company may impose
stop-transfer instructions with respect to any Registrable Shares that are to be
transferred in contravention of this Agreement. Any certificates representing
the Registrable Shares may bear a legend (and the Company’s register of members
may bear a notation) referencing the restrictions on transfer contained in this
Agreement and the Purchase Agreement, until such time as such securities have
ceased to be (or are to be transferred in a manner that results in their ceasing
to be) Registrable Shares.

      

      Section
8.      Assignment;
Transfers of Rights.
Neither this Agreement nor any rights hereunder are assignable or transferable,
without the prior written consent of the Company; provided, however, if the Investor transfers the
Purchased Securities to the Permitted Transferee in accordance with Section
4.5(b) of the Purchase Agreement, this Agreement may also be assigned to the
Permitted Transferee without the prior written consent of the Company. Such
Permitted Transferee shall, together with all other such transferees as
consented to by the Company, also have the rights of the Investor under this
Agreement, but only if such transferee signs and delivers to the Company a
written acknowledgment (in form and substance satisfactory to the Company) that
it has joined with the Investor as a party to this Agreement and has assumed the
rights and obligations of the Investor hereunder with respect to the rights
transferred to it by the Investor. Such permitted transfer shall be effective
when (but only when) such transferee has signed and delivered the written
acknowledgment to the Company. Upon any such effective transfer, such transferee
shall automatically have the rights so transferred, and the Investor’s
obligations under this Agreement, and the rights not so transferred, shall
continue, provided that under no
circumstances shall the Company be required to provide more than one Shelf
Registration. Notwithstanding any other provision of this Agreement, no Person
who acquires securities transferred in violation of this Agreement or the
Purchase Agreement, or who acquires securities that are not or upon acquisition
cease to be Registrable Shares, shall have any rights under this Agreement with
respect to such securities, and such securities shall not have the benefits
afforded hereunder to Registrable Shares.

    

     

    
      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

    

     

    Section
9.      Miscellaneous.

     

    (a)      Future Registration
Rights.  The Company agrees that it shall not grant any
registration rights to any third party (i) unless such rights are expressly made
subject to the rights of the Investor in a manner consistent with this Agreement
or (ii) if such registration rights are senior to, or take priority over, the
registration rights granted to the Investor under this Agreement.

     

    (b)      Amendment.  No
amendment of any provision of this Agreement will be effective unless made in
writing and signed by a duly authorized officer or representative of each
party.

     

    (c)      Waiver of
Conditions.  The conditions to each party’s duty to perform its
obligations under this Agreement are for the sole benefit of such party and may
be waived by such party in whole or in part to the extent permitted by
applicable laws.  No waiver will be effective unless it is in a
writing signed by a duly authorized officer or representative of the waiving
party that makes express reference to the provision or provisions subject to
such waiver.

     

    (d)      Counterparts and
Facsimile.  For the convenience of the parties hereto, this
Agreement may be executed in any number of separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts
will together constitute the same agreement.  Executed signature pages
to this Agreement may be delivered by facsimile and such facsimiles will be
deemed as sufficient as if actual signature pages had been
delivered.

     

    (e)      Governing Law; Submission to
Jurisdiction, Etc.

     

    
      	
            	
              (i)

            	
              This
      Agreement will be governed by and construed in accordance with the laws of
      the State of New York, without giving effect to the conflict of laws
      principles thereof.

            

    

     

    
      
        	
              	
                (ii)

              	
                Each
      of the parties hereto agrees all disputes arising among the parties
      in connection with this Agreement, or the breach, termination,
      interpretation or validity thereof, shall be finally settled by the Hong
      Kong International Arbitration Centre (the “HKIAC”)
      pursuant to UNCITRAL Rules with the Company, on the one hand, being
      entitled to designate one arbitrator, and with the Investor, on the other
      hand, being entitled to designate one arbitrator, while the third
      arbitrator will be selected by agreement between the two designated
      arbitrators or, failing such agreement, within 10 calendar days of initial
      consultation between the two arbitrators, by the HKIAC pursuant to its
      arbitration rules.  If any party fails to designate its
      arbitrator within 20 calendar days after the designation of the first of
      the three arbitrators, the HKIAC shall have the authority to designate any
      person whose interests are neutral to the parties as the second of the
      three arbitrators.  The arbitration shall be conducted in
      English.  To the extent consistent with UNCITRAL rules, each of
      the parties hereto shall cooperate with the others in provision of
      information during any discovery process relating to arbitrations in
      connection with the Transaction Documents.  The parties hereto
      further agree that, to the extent consistent with UNCITRAL rules, the
      parties shall be entitled to seek temporary and permanent injunctive
      relief from the arbitrators without the necessity of proving actual
      damages and without posting a bond or other
  security.

              

      

    

     

    
      
        	
              	
                (iii)

              	
                Each
      of the parties hereto agrees that notice may be served upon such party at
      the address and in the manner set forth for such party in Section
      9(f).

              

      

    

     

    
      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

    

     

    
      
        
          	
                	
                  (iv)

                	
                  To
      the extent permitted by applicable laws, each of the parties hereto hereby
      unconditionally waives trial by jury in any legal action or proceeding
      relating to this Agreement or the transactions contemplated
      hereby.

                

        

         

      

    

    (f)      Notices.  Any
notice, request, instruction or other document to be given hereunder by any
party to the other will be in writing and will be deemed to have been duly given
(a) on the date of delivery if delivered personally, or by facsimile, upon
confirmation of receipt, or (b) on the second Business Day following the
date of dispatch if delivered by a recognized next day courier
service.  All notices hereunder shall be delivered as set forth below,
or pursuant to such other instructions as may be designated in writing by the
party to receive such notice.

     

    
      
        (A)    
If to the Investor:

      

       

      Nokia
Growth Partners II, L.P.

      c/o N.G.
Partners II, L.L.C., its general partner

      545
Middlefield Road, Suite 210

      Menlo
Park, CA 94025

      United
States of America

      Attention:  John
Gardner

      Facsimile:
(+1-650) 462-7252

       

      with a
copy to:

       

      Gunderson
Dettmer Stough

      Villeneuve
Franklin & Hachigian, LLP

      1200
Seaport Boulevard

      Redwood
City, CA 94063

      United
States of America

      Attention:
Brian C. Patterson

      Facsimile:
(+1-650) 321-2800

       

      
        (B)     
If to the Company:

      

       

      KongZhong
Corporation

      35th
Floor, Tengda Plaza

      No. 168
Xizhimenwai Street

      Beijing
100044

      People’s
Republic of China

      Attention:
Chief Financial Officer

      Facsimile:
(+86-10) 8857-5891

      

      with a
copy to:

       

      Sullivan
& Cromwell LLP

      Suite
501, Tower 1, China World Trade Center

      One Jian
Guo Men Wai Avenue

      Beijing
100004

      People’s
Republic of China

      Attention:
Robert Chu

      Facsimile:
(+86-10) 5923-5950

    

    

    
      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

    

    

    (g)      Entire
Agreement.  This Agreement constitutes the entire agreement,
and supersedes all other prior agreements, understandings, representations and
warranties, both written and oral, among the parties, with respect to the
subject matter hereof.

     

    (h)      Severability.  If
any provision of this Agreement, or the application hereof to any person or
circumstance, is determined by a court of competent jurisdiction to be invalid,
void or unenforceable, the remaining provisions hereof, or the application of
such provision to persons or circumstances other than those as to which it has
been held invalid or unenforceable, will remain in full force and effect and
shall in no way be affected, impaired or invalidated thereby, so long as the
economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party.  Upon such
determination, the parties shall negotiate in good faith in an effort to agree
upon a suitable and equitable substitute provision to effect the original intent
of the parties.

     

    (i)       No Third-Party
Beneficiaries. Nothing contained in this Agreement, expressed or implied,
is intended to confer upon any person or entity other than the Company and the
Investor (and the Permitted Transferee or other transferee to which a transfer
is made in accordance with this Agreement), any benefits, rights, or remedies
(except as specified in Section 6 hereof).

     

    *           *           *

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    In Witness
Whereof, this Agreement has been duly executed and delivered by the duly
authorized officers of the parties hereto as of the date first herein above
written.

     

    
      
        
          
            
              
                	 
      	
                        KONGZHONG
      CORPORATION

                      
	 
      	 
      	 
      	 
	 
      	
                        By:

                      	 
      	 
	 
      	 
      	
                        Name:           Leilei
      Wang

                      
	 
      	 
      	
                        Title:             CEO
      of the
Company

                      

              

            

          

        

      

    

    

    
      
        
          
            
              
                
                  
                    	 
      	
                            NOKIA
      GROWTH PARTNERS II, L.P.

                          
	 
      	 
      	 
      	 
	 
      	
                            By:
      N.G. Partners II, L.L.C.

                          
	 
      	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	
                            Name:           John
      Gardner

                          
	 
      	 
      	
                            Title:             Managing
      Member

                          

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ANNEX
D: FORM OF LEGAL OPINION OF COMPANY’S CAYMAN ISLANDS COUNSEL

    

    Nokia
Growth Partners II, L.P

    c/o N.G.
Partners II L.L.C., its general partner

    545
Middlefield Road, Suite 210

    Menlo
Park, CA 94025

    USA

     

    __ March
2009

     

    Dear
Sirs

     

    KongZhong
Corporation

     

    We have
acted as counsel as to Cayman Islands law to KongZhong Corporation (the "Company") in connection with
its issue to the Investor of (i) an adjustable rate convertible senior note
due 2014 in the aggregate principal amount of US$6,775,400 (the “Note”) and (ii) a warrant (the
“Warrant”) to purchase
up to 80,000,000 ordinary shares of the Company, par value US$0.0000005 per
share (“Ordinary
Shares”).

     

    
      	
              1

            	
              Documents
      Reviewed

            

    

     

    We have
reviewed originals, copies, drafts or conformed copies of the following
documents:

     

    
      	
              1.1

            	
              The
      Certificate of Incorporation and Memorandum and Articles of Association of
      the Company adopted by a special resolution passed on 11 June 2004 and
      further amended by special resolutions passed on 6 September
      2005.

            

    

     

    
      	
              1.2

            	
              The
      written resolutions of the board of directors of the Company dated __
      March 2009 (the "Resolutions") and the
      corporate records of the Company maintained at its registered office in
      the Cayman Islands.

            

    

     

    
      	
              1.3

            	
              A
      Certificate of Good Standing dated __ March 2009 issued by the Registrar
      of Companies in the Cayman Islands (the "Certificate of Good
      Standing").

            

    

     

    
      	
              1.4

            	
              A
      certificate from a director of the Company a copy of which is annexed
      hereto (the "Director's
      Certificate").

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
              1.5

            	
              The
      Note and Warrant Purchase Agreement between the Investor, the Company and
      Leilei Wang dated __ March 2009 (the "Purchase
      Agreement").

            

    

     

    
      	
              1.6

            	
              The
      registration rights agreement between the Company and the
      Investor.

            

    

     

    
      	
              1.7

            	
              The
      Warrant included as an Annex to the Purchase
  Agreement.

            

    

     

    
      	
              1.8

            	
              The
      Note included as an Annex to the Purchase
  Agreement.

            

    

     

    The
document listed in paragraph 1.5 to 1.6 above are collectively referred to as
the "Transaction
Documents".

     

    
      	
              2

            	
              Assumptions

            

    

     

    The
following opinion is given only as to, and based on, circumstances and matters
of fact existing and known to us on the date of this opinion. This opinion only
relates to the laws of the Cayman Islands which are in force on the date of this
opinion.  In giving this opinion we have relied (without further
verification) upon the completeness and accuracy of the Director's Certificate
and the Certificate of Good Standing. We have also relied upon the following
assumptions, which we have not independently verified:

     

    
      	
              2.1

            	
              The
      Transaction Documents, the Note and the Warrant have been or will be
      authorised and duly executed and unconditionally delivered by or on behalf
      of all relevant parties in accordance with all relevant laws (other than,
      with respect to the Company, the laws of the Cayman
    Islands).

            

    

     

    
      	
              2.2

            	
              The
      Transaction Documents, the Note and the Warrant are, or will be, legal,
      valid, binding and enforceable against all relevant parties in accordance
      with their terms under the laws of the State of New York and all other
      relevant laws (other than, with respect to the Company, the laws of the
      Cayman Islands).

            

    

     

    
      	
              2.3

            	
              The
      choice of the laws of the State of New York as the governing law of the
      Transaction Documents, the Note and the Warrant has been made in good
      faith and would be regarded as a valid and binding selection which will be
      upheld by the courts of the State of New York and any other relevant
      jurisdiction (other than the Cayman Islands) as a matter of New York law
      and all other relevant laws (other than the laws of the Cayman
      Islands).

            

    

     

    
      	
              2.4

            	
              The
      validity and binding effect under the laws of the State of New York of the
      submission by the parties (including the Company) in the Transaction
      Documents, the Note and the Warrant to arbitration in the Hong Kong
      Special Administrative Region of the People's Republic of China ("Hong Kong") under the
      auspices of the Hong Kong International Arbitration
  Centre.

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
              2.5

            	
              Copy
      documents, conformed copies or drafts of documents provided to us are true
      and complete copies of, or in the final forms of, the originals, and
      translations of documents provided to us are complete and
      accurate.

            

    

     

    
      	
              2.6

            	
              All
      signatures, initials and seals are
genuine.

            

    

     

    
      	
              2.7

            	
              The
      power, authority and legal right of all parties under all relevant laws
      and regulations (other than, with respect to the Company, the laws of the
      Cayman Islands) to enter into, execute, unconditionally deliver and
      perform their respective obligations under the Transaction
      Documents.

            

    

     

    
      	
              2.8

            	
              The
      Note and the Warrant will be issued in accordance with the provisions of
      the Purchase Agreement.

            

    

     

    
      	
              2.9

            	
              Payment
      obligations of the Company under the Transaction Documents are
      unsubordinated and undeferred as a contractual matter under the governing
      law of the Transaction Documents and the parties to the Transaction
      Documents do not subsequently agree to subordinate or defer their
      claims.

            

    

     

    
      	
              2.10

            	
              All
      conditions precedent contained in the Purchase Agreement have been
      satisfied or duly waived and there has been no breach of the Purchase
      Agreement at the date of this
opinion.

            

    

     

    
      	
              2.11

            	
              No
      invitation has been or will be made by or on behalf of the Company to the
      public in the Cayman Islands to subscribe for the Note or the
      Warrant.

            

    

     

    
      	
              2.12

            	
              There
      is nothing under any law (other than the law of the Cayman Islands) which
      would or might affect the opinions hereinafter appearing. Specifically, we
      have made no independent investigation of the laws of Hong Kong or the
      State of New York.

            

    

     

    
      	
              3

            	
              Opinions

            

    

     

    Based
upon, and subject to, the foregoing assumptions and the qualifications set out
below, and having regard to such legal considerations as we deem relevant, we
are of the opinion that:

     

    
      	
              3.1

            	
              The
      Company has been duly incorporated as an exempted company with limited
      liability and is validly existing and in good standing under the laws of
      the Cayman Islands.

            

    

     

    
      	
              3.2

            	
              The
      Company has full power and authority under its Memorandum and Articles of
      Association to enter into, execute and perform its obligations under the
      Transaction Documents, the Note and the Warrant including the issue of the
      Note and the Warrant pursuant to the Purchase
  Agreement.

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
              3.3

            	
              The
      execution and delivery of the Transaction Documents and the issue of the
      Note and the Warrant by the Company and the performance of its obligations
      thereunder do not conflict with or result in a breach of any of the terms
      or provisions of the Memorandum and Articles of Association of the Company
      or any law, public rule or regulation applicable to the Company in the
      Cayman Islands currently in force.

            

    

     

    
      	
              3.4

            	
              The
      execution, delivery and performance of the Transaction Documents have been
      authorised by and on behalf of the Company and, assuming the Transaction
      Documents have been executed and unconditionally delivered by any Director
      of the Company, the Transaction Documents have been duly executed and
      delivered on behalf of the Company and constitute the legal, valid and
      binding obligations of the Company enforceable in accordance with their
      terms.

            

    

     

    
      	
              3.5

            	
              The
      Note and the Warrant have been duly authorised by the Company and when the
      Note and the Warrant are signed in facsimile or manually by a Director on
      behalf of the Company and delivered against due payment therefor will be
      duly executed, issued and delivered and will constitute the legal, valid
      and binding obligations of the Company enforceable in accordance with
      their respective terms.

            

    

     

    
      	
              3.6

            	
              Based
      upon review of the Memorandum and Articles of Association, the authorized
      share capital of the Company consists of 1,000,000,000,000 Ordinary Shares
      with a par value of US$0.0000005 each of which 1,443,156,120 shares are
      issued and outstanding.  The issued and outstanding Ordinary
      Shares have been duly authorized and are validly issued as fully paid and
      non-assessable (meaning that no further sums are payable to the Company on
      such shares), and are not subject to any pre-emptive rights under Cayman
      Islands law or the Memorandum and Articles of Association. The Ordinary
      Shares have the rights, preferences, privileges and restrictions set forth
      in the Memorandum and Articles of
Association.

            

    

     

    
      	
              3.7

            	
              When
      Ordinary Shares are issued upon exercise of the Warrant (the "Warrant Shares") in
      accordance with the terms of the Warrant and the Purchase Agreement
      against payment in full of the consideration therefor set forth in the
      Warrant and the Purchase Agreement and entered as fully paid in the
      register of members (shareholders), the Warrant Shares will be legally
      issued and allotted, as fully paid and non-assessable, and upon entry in
      the register of members (shareholders), the Warrantholder (as defined in
      the Warrant) will be the holder of such Warrant Shares as is set out
      against its name in such register.

            

    

     

    
      	
              3.8

            	
              When
      Ordinary Shares are issued upon conversion of the Note (the "Conversion Shares") in
      accordance with the terms of the Note and the Purchase Agreement and
      entered as fully paid in the register of members (shareholders), the
      Conversion Shares will be legally issued and allotted, as fully paid and
      non-assessable, and upon entry in the register of members (shareholders),
      the Holder (as defined in the Note) will be the holder of such Conversion
      Shares as is set out against its name in such
  register.

            

    

     

    
      	
              3.9

            	
              No
      authorisations, consents, approvals, licences, validations or exemptions
      are required by law from any governmental authorities or agencies or other
      official bodies in the Cayman Islands in connection
  with:

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (a)

            	
              the
      execution, creation or delivery of the Transaction Documents by the
      Company;

            

    

     

    
      	
               
      

            	
              (b)

            	
              subject
      to the payment of stamp duty, the enforcement of the Transaction
      Documents, the Note and the Warrant against the
  Company;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      execution, issue or delivery of the Note and the
  Warrant;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      performance by the Company of its obligations under the Note, the Warrant
      and the Transaction Documents;

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      payment of the principal and interest and any other amounts under the
      Note;

            

    

     

    
      	
               
      

            	
              (f)

            	
              the
      creation, allotment or issue of the Conversion Shares upon the conversion
      of the Note; and

            

    

     

    
      	
               
      

            	
              (g)

            	
              the
      creation, allotment or issue of the Warrant Shares upon the exercise of
      the Warrant.

            

    

     

    
      	
              3.10

            	
              No
      taxes, fees or charges (other than stamp duty or any applicable court
      fees) are payable (either by direct assessment or withholding) to the
      government or other taxing authority in the Cayman Islands under the laws
      of the Cayman Islands in respect
of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      execution or delivery of the Transaction Documents, the Note or the
      Warrant;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      enforcement of the Transaction Documents, the Note or the
      Warrant;

            

    

     

    
      	
               
      

            	
              (c)

            	
              payments
      made under, or pursuant to, the Transaction Documents, the Note or the
      Warrant;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      issue, transfer or redemption of the
Note;

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      creation, allotment or issue of the Conversion Shares upon the conversion
      of the Note; or

            

    

     

    
      	
               
      

            	
              (f)

            	
              the
      creation, allotment or issue of the Warrant Shares upon the exercise of
      the Warrant.

            

    

    
       

      The
Cayman Islands currently have no form of income, corporate or capital gains tax
and no estate duty, inheritance tax or gift tax.

       

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
              3.11

            	
              The
      courts of the Cayman Islands will observe and give effect to the choice of
      the laws of the State of New York law as the governing law of the
      Transaction Documents, the Note and the
Warrant.

            

    

     

    
      	
              3.12

            	
              The
      unsecured obligations of the Company under the Transaction Documents, the
      Note and Warrant rank and will rank at least pari passu with all its other
      present and future unsecured obligations (other than those preferred by
      law).

            

    

     

    
      	
              3.13

            	
              Based
      solely on our search of the Register of Writs and Other Originating
      Process (the "Court
      Register") maintained by the Clerk of the Court of the Grand Court
      of the Cayman Islands [from the date of incorporation of the Company to__
      March 2009 (the "Litigation Search"), the
      Court Register disclosed no writ, originating summons, originating motion,
      petition or third party notice ("Originating Process")
      pending before the Grand Court of the Cayman Islands in which the Company
      is a defendant or respondent.

            

    

     

    
      	
              3.14

            	
              Although
      there is no statutory enforcement in the Cayman Islands of judgments
      obtained in Hong Kong or the State of New York, a judgment obtained in
      such jurisdiction will be recognised and enforced in the courts of the
      Cayman Islands at common law, without any re-examination of the merits of
      the underlying dispute, by an action commenced on the foreign judgment
      debt in the Grand Court of the Cayman Islands, provided such
      judgment:

            

    

     

    
      	
               
      

            	
              (a)

            	
              is
      given by a foreign court of competent
  jurisdiction;

            

    

     

    
      	
               
      

            	
              (b)

            	
              imposes
      on the judgment debtor a liability to pay a liquidated sum for which the
      judgment has been given;

            

    

     

    
      	
               
      

            	
              (c)

            	
              is
      final;

            

    

     

    
      	
               
      

            	
              (d)

            	
              is
      not in respect of taxes, a fine or a penalty;
  and

            

    

     

    
      	
               
      

            	
              (e)

            	
              was
      not obtained in a manner and is not of a kind the enforcement of which is
      contrary to natural justice or the public policy of the Cayman
      Islands.

            

    

     

    
      	
              3.15

            	
              The
      courts of the Cayman Islands will recognise and enforce arbitral awards
      made pursuant to an arbitration agreement in a jurisdiction which is a
      party to the United Nations Convention on the Recognition and Enforcement
      of Foreign Arbitral Awards (the "New York
      Convention").  Hong Kong and the Cayman Islands are
      parties to the New York Convention with the result that an arbitral award
      made in Hong Kong pursuant to the Transaction Documents, the Note or the
      Warrant will be recognised and enforced in the Cayman Islands unless the
      party against whom enforcement is sought can establish one of the defences
      set out in section 7 of the Foreign Arbitral Awards Enforcement Law (1997
      Revision) of the Cayman Islands.

            

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
              3.16

            	
              It
      is not necessary to ensure the legality, validity, enforceability or
      admissibility in evidence of the Transaction Documents, the Note or the
      Warrant that any document be filed, recorded or enrolled with any
      governmental authority or agency or any official body in the Cayman
      Islands.

            

    

     

    
      	
              3.17

            	
              Neither
      the Investor nor any other holder of the Note or the Warrant will be
      treated as resident, domiciled or carrying on or transacting business in
      the Cayman Islands solely by reason of the negotiation, preparation or
      execution of the Transaction Documents or the issue of the Note or the
      Warrant, or the holding of the Conversion Shares or the Warrant
      Shares.

            

    

     

    
      	
              3.18

            	
              Neither
      the Investor nor any other holder of the Note or the Warrant will be
      required to be licenced, qualified, or otherwise entitled to carry on
      business in the Cayman Islands in order to enforce their respective rights
      under the Transaction Documents, the Note or the Warrant, or as a
      consequence of the execution, delivery and performance of the Transaction
      Documents or the issue of the Note or the Warrant, or the holding of the
      Conversion Shares or the Warrant
Shares.

            

    

     

    
      	
              3.19

            	
              There
      is no exchange control legislation under Cayman Islands law and
      accordingly there are no exchange control regulations imposed under Cayman
      Islands law.

            

    

     

    
      	
              4

            	
              Qualifications

            

    

     

    The
opinions expressed above are subject to the following
qualifications:

     

    
      	
              4.1

            	
              The
      term "enforceable"
      as used above means that the obligations assumed by the Company under the
      Transaction Documents, the Note and the Warrant are of a type which the
      courts of the Cayman Islands will enforce.  It does not mean
      that those obligations will necessarily be enforced in all circumstances
      in accordance with their terms.  In
  particular:

            

    

     

    
      	
               
      

            	
              (a)

            	
              enforcement
      may be limited by bankruptcy, insolvency, liquidation, reorganisation,
      readjustment of debts or moratorium or other laws of general application
      relating to or affecting the rights of
  creditors;

            

    

     

    
      	
               
      

            	
              (b)

            	
              enforcement
      may be limited by general principles of equity.  For example,
      equitable remedies such as specific performance may not be available,
      inter alia, where damages are considered to be an adequate
      remedy;

            

    

     

    
      	
               
      

            	
              (c)

            	
              some
      claims may become barred under the statutes of limitation or may be or
      become subject to defenses of set off, counterclaim, estoppel and similar
      defenses;

            

    

     

    
      	
               
      

            	
              (d)

            	
              where
      obligations are to be performed in a jurisdiction outside the Cayman
      Islands, they may not be enforceable in the Cayman Islands to the extent
      that performance would be illegal under the laws of that
      jurisdiction;

            

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (e)

            	
              the
      Cayman Islands court has jurisdiction to give judgment in the currency of
      the relevant obligation and statutory rates of interest payable upon
      judgments will vary according to the currency of the
      judgment.  If the Company becomes insolvent and is made subject
      to a liquidation proceeding, the Cayman Islands court will require all
      debts to be proved in a common currency, which is likely to be the
      "functional currency" of the Company determined in accordance with
      applicable accounting principles. Currency indemnity provisions have not
      been tested, so far as we are aware, in the courts of the Cayman
      Islands;

            

    

     

    
      	
               
      

            	
              (f)

            	
              arrangements
      that may be regarded as penalties will not be
  enforceable;

            

    

     

    
      	
               
      

            	
              (g)

            	
              the
      courts of the Cayman Islands may decline to exercise jurisdiction in
      relation to substantive proceedings brought under or in relation to the
      Transaction Documents in matters where they determine that such
      proceedings may be tried in a more appropriate forum;
  and

            

    

     

    
      	
               
      

            	
              (h)

            	
              a
      company cannot, by agreement or in its articles of association, restrict
      the exercise of a statutory power, and there exists doubt as to
      enforceability of any provision in the Transaction Documents, the Note or
      the Warrant whereby the Company covenants not to exercise powers
      specifically given to its shareholders by the Companies Law (2007
      Revision) of the Cayman Islands, including, without limitation, the power
      to increase its authorised share capital, amend its memorandum and
      articles of association, or present a petition to a Cayman Islands court
      for an order to wind up the
Company.

            

    

     

    
      	
              4.2

            	
              Cayman
      Islands stamp duty may be payable if the original Transaction Documents,
      the original Note or the original Warrant are brought to or executed in
      the Cayman Islands.

            

    

     

    
      	
              4.3

            	
              To
      maintain the Company in good standing under the laws of the Cayman
      Islands, annual filing fees must be paid and returns made to the Registrar
      of Companies.

            

    

     

    
      	
              4.4

            	
              The
      obligations of the Company may be subject to restrictions pursuant to
      United Nations sanctions as implemented under the laws of the Cayman
      Islands.

            

    

     

    
      	
              4.5

            	
              A
      certificate, determination, calculation or designation of any party to the
      Transaction Documents, the Note or the Warrant as to any matter provided
      therein might be held by a Cayman Islands court not to be conclusive final
      and binding if, for example, it could be shown to have an unreasonable or
      arbitrary basis, or in the event of manifest
  error.

            

    

     

    
      	
              4.6

            	
              The
      Litigation Search of the Court Register would not reveal, amongst other
      things, an Originating Process filed with the Grand Court which, pursuant
      to the Grand Court Rules or best practice of the Clerk of the Courts'
      office, should have been entered in the Court Register but was not in fact
      entered in the Court Register (properly or at all) or an Originating
      Process not otherwise filed or
disclosed.

            

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
              4.7

            	
              In
      principle a Cayman Islands court will award costs and disbursements in
      litigation in accordance with the relevant contractual provisions but
      there remains some uncertainty as to the way in which the rules of the
      Grand Court will be applied in practice.  Whilst it is clear
      that costs incurred prior to judgment can be recovered in accordance with
      the contract, it is likely that post-judgment costs (to the extent
      recoverable at all) will be subject to taxation in accordance with Grand
      Court Rules Order 62.

            

    

     

    
      	
              4.8

            	
              Preferred
      creditors under Cayman Islands law will rank ahead of unsecured creditors
      of the Company.  Furthermore, all costs, charges and expenses
      properly incurred in the voluntary winding up of a company, including the
      remuneration of the liquidators, are payable out of the assets of the
      company in priority to all other unsecured
  claims.

            

    

     

    
      	
              4.9

            	
              We
      reserve our opinion as to the extent to which a Cayman Islands court
      would, in the event of any relevant illegality, sever the offending
      provisions and enforce the remainder of the transaction of which such
      provisions form a part, notwithstanding any express provisions in this
      regard.

            

    

     

    
      	
              4.10

            	
              We
      make no comment with regard to the references to foreign statutes in the
      Transaction Documents, the Note or the
Warrant.

            

    

     

    
      	
              4.11

            	
              Under
      the Companies Law (2007 Revision) of the Cayman Islands, the register of
      members of a Cayman Islands company is by statute regarded as prima facie
      evidence of any matters which the Companies Law (2007 Revision) directs or
      authorises to be inserted therein.  A third party interest in
      the shares in question would not appear.  An entry in the
      register of members may yield to a court order for rectification (for
      example, in the event of fraud or manifest
  error).

            

    

     

    We
express no view as to the commercial terms of the Transaction Documents, the
Note or the Warrant or whether such terms represent the intentions of the
parties and make no comment with respect to any representations which may be
made by the Company.

     

    This
opinion is addressed to and is for the benefit solely of the addressees and may
not be relied upon by, or disclosed to, any other person without our prior
written consent.

     

    Yours
faithfully

     

    Maples
and CalderUnassociated Document

     

    EXECUTION
VERSION

    

    Exhibit
4.104

    

    First Amendment to Note and
Warrant Purchase Agreement

    

    First
Amendment, dated April 9, 2009 (this “Amendment”), to the
Note and Warrant Purchase Agreement, dated March 18, 2009 (the “Purchase Agreement”),
among KongZhong Corporation, an exempted limited liability company incorporated
under the laws of the Cayman Islands (the “Company”), Leilei
Wang, Chief Executive Officer of the Company (the “Sponsor”), and Nokia
Growth Partners II, L.P., a Delaware limited partnership (the “Investor”).

    

    Recitals:

    

    WHEREAS,
the Company, the Sponsor and the Investor desire to amend the Purchase
Agreement to reflect certain modified terms.

    

    NOW, THEREFORE, in
consideration of the premises and mutual representations and agreements set
forth herein, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

    

    
      	
              1.

            	
              All
      capitalized terms used and not otherwise defined in this Amendment have
      the respective meanings indicated in the Purchase
    Agreement.

            

    

    

    
      	
              2.

            	
              Section
      2.2(b) of the Purchase Agreement is hereby amended and restated in its
      entirety as follows:

            

    

    

    “Capitalization.  The
authorized share capital of the Company consists of 1,000,000,000,000 Ordinary
Shares, of which, as of December 31, 2008 (the “Capitalization
Date”), 1,443,156,120 Ordinary Shares were issued and outstanding (it
being understood that the number of 1,443,156,120 includes
(i) 8,923,600 Ordinary Shares which the Company had agreed to
repurchase on or before December 31, 2008 pursuant to its share repurchase
program and were in the process of being cancelled and of which
such cancellation had not yet been reflected in the Register of
Members of the Company as of December 31, 2008, and
(ii) 13,321,960 Ordinary Shares held by Citi (Nominees) Limited as of
December 31, 2008 for future exercise of stock options and
vesting of restricted share units under the Company’s equity incentive
plans).  The issued and outstanding Ordinary Shares have been duly
authorized and are validly issued as fully paid and non-assessable (meaning that
no further sums are payable to the Company on such shares), and are not subject
to any preemptive rights under Cayman Islands law or the Memorandum and Articles
of Association of the Company.”

     

    3.           This
Amendment shall become effective as of the date hereof.

    

    
      	
              4.

            	
              This
      Amendment shall not constitute an amendment or waiver of any other
      provision of the Purchase Agreement not expressly referred to
      herein.  Except as expressly amended hereby, the provisions of
      the Purchase Agreement are and shall remain in full force an
      effect.

            

    

    

    
      	
              5.

            	
              The
      provisions of Article V (Miscellaneous) of the Purchase Agreement shall
      apply mutatis
      mutandis to this Amendment.

            

    

    

    
      *               
*               
*

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In Witness
Whereof, this Amendment has been duly executed and delivered by the duly
authorized officers of the parties hereto as of the date first herein above
written.

    

    
      
        	 
      	
                KONGZHONG
      CORPORATION

              
	 
      	 
      
	 
      	 
      
	 
      	
                By: 

              	
                /s/ Leilei Wang

              
	 
      	
                Name:    Leilei
      Wang

              
	 
      	
                Title:      CEO
      of the Company

              

      

    

    
 

    
      
        	 
      	
                LEILEI
      WANG

              
	 
      	 
      
	 
      	 
      
	 
      	
                By: 

              	
                /s/ Leilei Wang

              
	 
      	
                Name:    Leilei
      Wang

              
	 
      	
                Title:      CEO
      of the Company

              

      

    

     

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    	 
      	 
      
	 	
                                                                                                                  
                                                                                                              NOKIA
      GROWTH PARTNERS II, L.P.

                                                                                                            

                                                                                                          
	 	 	 	 
	 	 	 	 
	 	By:
      	
                                                                                                            N.G.
      Partners II, L.L.C.

                                                                                                          
	 	 	 	 
	 	 	
                                                                                                            /s/ John Gardner

                                                                                                          
	 	 	
                                                                                                            Name:

                                                                                                          	
                                                                                                            John
      Gardner

                                                                                                          
	 	 	
                                                                                                            Title:

                                                                                                          	
                                                                                                            Managing
      Member

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]