Document:

Warrant
Purchase Agreement

 

Dated August 28, 2012

 

among

 

KongZhong
Corporation,

 

Fit
Run Limited

 

and

 

Nokia
Growth Partners II, L.P.

 

 

    	 

    	 

    

 

Warrant
Purchase Agreement, dated August 28, 2012 (this “Agreement”), among KongZhong Corporation, an exempted
limited liability company incorporated under the laws of the Cayman Islands (the “Company”), Fit Run Limited,
a company incorporated under the laws of the British Virgin Islands (the “Investor”), and Nokia Growth Partners
II, L.P., a Delaware limited partnership (“NGP”).

 

Recitals:

 

WHEREAS:

 

A.           NGP
is the holder of a warrant (the “Original Warrant”) to purchase up to 80,000,000 ordinary shares of the Company,
par value US$0.0000005 per share (“Ordinary Shares”);

 

B.           NGP
desires to sell to the Investor 50% of the Original Warrant to Investor in the form of a warrant (the “Warrant”)
to purchase up to 40,000,000 Ordinary Shares;

 

C.           The
Investor desires to purchase from NGP the Warrant; and

 

D.           The
Company consents to the transfer of the Warrant from NGP to the Investor and the issuance to NGP of its remaining portion of the
Original Warrant in the form of a warrant (the “Remainder Warrant”) to purchase up to 40,000,000 Ordinary Shares.

 

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, NGP agrees to sell
to the Investor, and the Investor agrees to purchase from NGP, at the Closing (as hereinafter defined), the Warrant for an aggregate
purchase price of US$4,000,000 (the “Purchase”). For the avoidance of doubt, except as expressly set forth in
the Warrant, or this Agreement, NGP is not transferring and the Investor is not receiving any of NGP’s benefits, rights and
remedies under the Note and Warrant Purchase Agreement, dated as of March 18, 2009, among the Company, Leilei Wang and NGP and
the Registration Rights Agreement, dated as of March 18, 2009, between the Company and NGP.

 

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 Loeb & Loeb LLP, Suite 4301, Tower C, Beijing Yintai Center, 2 Jianguomenwai Dajie, Chaoyang
District, Beijing, P.R. China, at 9:30 a.m., Beijing time, on August 28, 2012 or as soon as practicable thereafter, or at
such other place, time and date as shall be agreed between the NGP 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, NGP shall cause the Company
to deliver the Warrant to the Investor, in substantially the form attached hereto as Annex A, 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 NGP at least three (3) Business Days prior to the Closing Date.

 

    	 

    	 

    

 

(c)          The
respective obligations of each of the Company, the Investor and NGP to consummate the Purchase are subject to the fulfillment (or
waiver by the Company, the Investor and NGP, 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 Warrant.

 

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

 

(i)          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);

 

(ii)         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

 

(iii)        The
Company shall have duly executed and delivered the Remainder Warrant in substantially the form attached hereto as Annex B to NGP
or its designee(s) in exchange of the Original Warrant.

 

(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)          The
representations and warranties of NGP 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);

 

(ii)         NGP
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

 

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

 

(f)          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)          The
representations and warranties of the Investor and NGP 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);

 

(ii)         The
Investor and NGP 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

 

(iii)        NGP
shall have tendered the Original Warrant to the Company in exchange of the Remainder Warrant in substantially the form attached
hereto as Annex B.

 

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.

 

    	2

    	 

    

 

Article II

 

Representations
and Warranties

 

2.1         Representations
and Warranties of NGP.  NGP represents and warrants to the Investor that as of the date hereof:

 

(a)          NGP
is the record and beneficial owner of the Warrant. NGP has good and valid title to the Warrant and, upon the transfer of the Warrant
in accordance with this Agreement, Investor will receive good and valid title to the Warrant, free and clear of all liens other
than restrictions on transfer imposed by the Securities Act of 1933, as amended (the “Securities Act”) and applicable
state securities or “Blue Sky” laws.

 

(b)          There
are no options, warrants, rights, calls, commitments, conversion rights, rights of exchange or other agreements of any character,
contingent or otherwise, providing for the purchase or sale of any of the Warrant by any person other than NGP pursuant hereto.

 

(c)          NGP
is selling the Warrant solely for its own account and not for the account or benefit of any other person.

 

(d)          This
Agreement has been validly authorized, executed and delivered by NGP and, assuming the due authorization, execution and delivery
thereof by the Investor and the Company, is a valid and binding agreement enforceable in accordance with its terms, subject to
the general principles of equity and to bankruptcy or other laws affecting the enforcement of creditors’ rights generally.
The execution, delivery and performance of this Agreement by NGP does not and will not conflict with, violate or cause a breach
of, constitute a default under, or result in a violation of (i) any agreement, contract or instrument to which NGP is a party which
would prevent NGP from performing its obligations hereunder or (ii) any law, statute, rule or regulation to which NGP is subject.

 

(e)          NGP
is an informed and sophisticated investor, and has engaged expert advisors, experienced in transactions of the type contemplated
by this Agreement. NGP further represents that it has been furnished with, and has evaluated, all information it deems necessary,
desirable and appropriate to evaluate the merits and risks of the transactions contemplated herein and has received such legal
and financial other advice as deemed to be necessary, desirable and appropriate to enable it to make an informed and intelligent
decision with respect to the execution, delivery and performance of this Agreement. In evaluating the suitability of the transactions
contemplated herein, NGP has not relied upon any representations or information whether oral or written made by or on behalf of
the Investor other than the representations and warranties of the Investor expressly set forth in this Agreement.

 

(f)          NGP
understands and acknowledges that, in effecting the transactions contemplated by this Agreement, the Investor will rely on the
representations and warranties contained in this Section 2.1.

 

(g)          No
investment banker, broker, finder or other intermediary is entitled to a fee or commission from NGP in respect of this Agreement
based upon any arrangement or agreement made by or on behalf of the Investor. NGP acknowledges that it has had the opportunity
to review this Agreement and the transactions contemplated by this Agreement with NGP’s own legal counsel and investment
and tax advisors.

 

(h)          NGP
is not relying on any statements or representations of the Investor or any of its representatives or agents for legal, tax or investment
advice with respect to this Agreement or the transactions contemplated by the Agreement. NGP understands that it (and not the Investor)
shall be responsible for any and all tax liabilities of NGP that may arise as a result of the transactions contemplated by this
Agreement.

 

    	3

    	 

    

 

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

 

(a)          The
Investor has full legal right, power and authority to enter into and perform its obligations under this Agreement and to purchase
the Warrant under this Agreement. This Agreement has been validly authorized, executed and delivered by the Investor and assuming
the due authorization, execution and delivery thereof by NGP and the Company, is a valid and binding agreement of the Investor,
enforceable in accordance with its terms, subject to the general principles of equity and to bankruptcy or other laws affecting
the enforcement of creditors’ rights generally. The execution, delivery and performance of this Agreement by the Investor
does not and will not conflict with, violate or cause a breach of, constitute a default under, or result in a violation of (i)
any agreement, contract or instrument to which the Investor is a party which would prevent the Investor from performing or materially
delay or materially impair the ability of the Investor from performing its obligations hereunder or (ii) any law, statute, rule
or regulation to which the Investor is subject.

 

(b)          The
Investor is sophisticated in financial matters and is able to evaluate the risks and benefits attendant to the transfer. The Investor
further represents that it has been furnished with, and has evaluated, all information it deems necessary, desirable and appropriate
to evaluate the merits and risks of the transactions contemplated herein and has received such legal and financial other advice
as deemed to be necessary, desirable and appropriate to enable it to make an informed and intelligent decision with respect to
the execution, delivery and performance of this Agreement.

 

(c)          The
Investor acknowledges that it has had the opportunity to review this Agreement and the transactions contemplated by this Agreement
with its own legal counsel and investment and tax advisors. The Investor is not relying on any statements or representations of
NGP or any of its representatives or agents for legal, tax or investment advice with respect to this Agreement or the transactions
contemplated by the Agreement.

 

(d)          The
Investor understands that it (and not NGP) shall be responsible for any and all tax liabilities of the Investor that may arise
as a result of the transactions contemplated by this Agreement.

 

(e)          The
Investor acknowledges and understands that if it decides to offer, resell, pledge or otherwise transfer the Warrant or any of the
Ordinary Shares issued upon exercise of the Warrant (the “Warrant Shares”), such Warrant or Warrant Shares may
be offered, resold, pledged or otherwise transferred only (A) pursuant to an effective registration statement filed under the Securities
Act, (B) pursuant to an exemption from registration under Rule 144 promulgated under the Securities Act, if available, or (C) pursuant
to any available other exemption from the registration requirements of the Securities Act, and in each case in accordance with
any applicable securities laws of any state or any other jurisdiction.

 

Article III

 

Covenants

 

3.1   
     SEC Reports; NASDAQ Listing.  For so long as the Investor continues to hold the
Warrant or Warrant Shares, the Company shall file with the Securities and Exchange Commission (the “Commission”)
in a timely manner all reports and other documents required to be filed by the Company pursuant to the Securities Exchange Act
of 1934, as amended (the “Exchange Act”).  For so long as the Investor continues to hold the Warrant
or Warrant Shares, the Company shall use its reasonable best efforts to maintain the listing of its ADSs on the NASDAQ Stock Market.

 

3.2           
Reservation and Issuance of Ordinary Shares. The Company covenants that it will at all times reserve and keep available
out of the aggregate of its authorized but unissued and otherwise unreserved ordinary shares, solely for the purpose of enabling
it to issue ordinary shares upon exercise of the Warrant, the number of ordinary shares which are then issuable and deliverable
upon the exercise of the Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the
Investor (taking into account the adjustments contained Section 10 of the Warrant). The Company covenants that all ordinary shares
so issuable and deliverable shall, upon issuance and the payment of the applicable exercise price in accordance with the terms
of the Warrant, be duly and validly authorized, issued and fully paid and nonassessable.

 

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3.3           
Registration Rights. The Company agrees that, if so requested by the Investor in writing, the Company shall promptly amend
or supplement the registration statement on Form F-3, as amended (File No. 333-181459) (the “Registration Statement”)
and file such amendment or supplement with the Commission to include the Investor and its affiliates as a “Selling Shareholder”
to allow the Investor or its affiliates to sell all or a portion of the Ordinary Shares underlying he Warrant from time to time
pursuant to the Registration Statement.

 

3.4           
Effectiveness of the Registration Statement. If so requested by the Investor, the Company shall maintain the effectiveness
of the Registration Statement with the Commission until all of the Ordinary Shares underlying the Warrant have been sold by 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 Warrant Shares.  The Company shall use its reasonable best efforts to assist in a timely manner the Investor in
any conversions of the Warrant Shares into ADSs.

 

4.3         
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) the Warrant.  Each transaction
referenced in this clause is herein called a “Transfer”.  Exercise of the Warrant in accordance with
the terms of the Warrant shall not be deemed a Transfer.

 

(b)         Notwithstanding
the foregoing, Section 4.3(a) shall not prevent the Investor from transferring the Warrant, at any time, to any of its affiliates
(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 this Agreement.  The Investor
shall provide written notice to the Company of any Transfer of the Warrant to the Permitted Transferee prior to 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 the Warrant or any of 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
Warrant is, 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 under the Securities Act. Accordingly, the
Investor shall not, directly or through others, offer or sell the Warrant or any of the 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 Warrant
or any of the Warrant Shares, the Investor shall notify the Company of such Transfer.  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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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 one hundred and twenty (120) 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 or NGP shall be issued or made by the Company or its affiliates without
the consent of the Investor and NGP (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 and NGP 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 NGP 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 NGP 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

 

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

 

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 the 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.

 

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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 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 NGP, 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 the Company. If any party
fails to designate its arbitrator within twenty (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 this Agreement.  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)         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.

 

(d)         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 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 NGP:
	 	 
	 	Nokia Growth Partners II, L.P.
	 	c/o N.G. Partners II, L.L.C., its general partner
	 	425 Broadway St.
	 	Redwood City, CA 94063
	 	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

 

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	(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
	 	28th Floor
	 	Nine Queen’s Road Central
	 	Hong Kong
	 	Attention: William Y. Chua
	 	Facsimile:  (+852) 2826-1773
	 	 
	(C)        If to the Investor:	 
	 	 
	 	Fit Run Limited
	 	Suite 1502, Tower D
	 	Building 1, Yong He Plaza
	 	28 An Ding Men Dong Da Jie
	 	Dongcheng District
	 	Beijing 100007, P.R. China
	 	Attention:  Jun Han
	 	Facsmile: (+86-10) 6567-3316
	
         

        with a copy to:
	 
	 	 
	 	Loeb & Loeb LLP
	 	Suite 4301, Tower C
	 	Beijing Yintai Center
	 	2 Jianguomenwai Dajie, Chaoyang District
	 	Beijing 100022
	 	People’s Republic of China
	 	Attention: Roger Peng
	 	Facsimile:  (+86-10) 5954-3501

 

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.

 

(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.

 

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(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 the Investor in accordance with Section 4.3(b) hereof.

 

5.10       Severability.  If
any provision of this Agreement 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, NGP 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.

 

*           *           *

 

    	9

    	 

    

 

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
	 	 	 	 
	 	NOKIA GROWTH PARTNERS II, L.P.
	 	 	 	 
	 	By: 	N.G. Partners II, L.L.C.
	 	 	/s/ John Gardner
	 	 	Name:	John Gardner
	 	 	Title:	Managing Member

 

	 	FIT RUN LIMITED
	 	 	 
	 	 By:	/s/ Jun Han
	 	 	Name:	Jun Han
	 	 	Title:	Sole Director

 

    	 

    	 

    

 

ANNEX A

 

FORM OF WARRANT

 

    	 

    	 

    

 

ANNEX B

 

FORM OF REMAINDER WARRANTExhibit 10.45

 

EXCLUSIVE LICENSE AGREEMENT

 

This Agreement is made
and is effective this 11th day of July 2005 (the "Effective Date") between THE REGENTS OF THE UNIVERSITY OF CALIFORNIA
("The Regents"), a California corporation having its corporate offices located at 1111 Franklin Street, Oakland, California
94607-5200, acting through its offices located at 10920 Wilshire Blvd, Suite 1200, Los Angeles, California 90024-1406, and General
Fiber, Inc ("Licensee"), a corporation having a principal place of business at 801 Brickell Avenue, 9th Floor,
Suite 942, Miami, FL 33131.

 

RECITALS

 

WHEREAS, a certain invention
(the "Invention"), generally characterized as "Estriol for the treatment of autoimmune diseases & the use of
estriol and other estranges, estrogens and estrogen receptor active compositions in the treatment of psoriasis & other autoimmune
diseases" (UCLA Case No. 1998-531 & UCLA Case No. 2004-101) made in the course of research at the University of California,
Los Angeles and Irvine by Drs. Rhonda Voskuhl, Jenny Murase, and Gerald Weinstein), and claimed in Regents' Patent Rights as defined
below;

 

WHEREAS, Drs.
Voskuhl, Murase, ~and Weinstein are an employees of The
Regents and as such are obligated to assign their right, title and interest in and to the Invention to The Regents; 

 

WHEREAS, the Invention
was developed with United States Government funds, and The Regents has elected title thereto and granted a royalty-free nonexclusive
license to the United States Government on 11-14-97, as required under 35 U.S.C. §200-212;

 

WHEREAS, Licensee and The
Regents entered into a Secrecy Agreement effective 10-20-03 and expiring on 10-20-08 to allow Licensee to evaluate its interest
in the Invention and, as a result of its evaluation, Licensee wishes to obtain certain rights from The Regents;

 

WHEREAS, Licensee is a
"small business concern" as defined in 15 U.S.C. §632; and

 

WHEREAS, The Regents wishes
that Regents' Patent Rights be developed and utilized to the fullest extent so that the benefits can be enjoyed by the general
public.

 

The parties agree as follows:

 

1. DEFINITIONS

 

1.1
"Regents' Patent Rights" means The Regents interest in any of the patent applications listed in Appendix A attached
to this Agreement and assigned to The Regents (UCLA Case No. 1998-531 & UCLA Case No. 2004-101); any continuing applications
thereof including divisions; but excluding continuations-in-part except to the extent of claims entirely supported in the specification
and entitled to the priority date of the parent application; any patents issuing on these applications including reissues and reexaminations;
and any corresponding foreign patents or patent applications; all of which will be automatically incorporated in and added to Appendix
A and made a part of this Agreement.

 

    	 

    	 

    

 

1.2 "Licensed
Product" means any article, composition, apparatus, substance, chemical, or any other material covered by Regents' Patent
Rights or whose manufacture, use or sale would constitute an infringement of any claim within Regents'
Patent Rights, or any service, article, composition, apparatus, chemical, substance, or any other material made, used, or sold
by or utilizing or practicing a Licensed Method. This definition of Licensed Product also includes a service either used by Licensee,
an Affiliate, or sublicensee or provided by Licensee, an Affiliate or sublicensee to its customers when such service requires the
use of Licensed Product or performance of Licensed Method. Additionally, for the avoidance of doubt, if such product is a component
of a larger unit such as a kit, composition of matter or combination, such kit, composition of matter or combination is deemed
to be the Licensed Product for purposes of this definition. 

 

1.3
"Licensed Method" means any process or method which is covered by Regents' Patent Rights or whose use or practice
would constitute an infringement of any claim within Regents' Patent Rights.

 

1.4
The "Field of Use" means all fields for the first two years after the Effective Date of the Agreement. On the second
anniversary of the Effective Date of the Agreement Licensee will select fields of use and for each field will be required to meet
the diligence terms outlined in paragraph 6.3 below.

 

1.5
"Affiliate" means any corporation or other business entity in which Licensee owns or controls, directly or indirectly,
at least 50% of the outstanding stock or other voting rights entitled to elect directors. In any country where the local law does
not permit foreign equity participation of at least 50%, then "Affiliate" means any company in which Licensee owns or
controls, directly or indirectly, the maximum percentage of outstanding stock or voting rights that is permitted by local law.

 

1.6
"First Commercial Sale" means the first sale of any Licensed Product by Licensee or any Affiliate or Sublicensee,
following approval of it's marketing by the appropriate governmental agency for the country in which the sale is to be made. When
governmental approval is not required, "First Commercial Sale" means the first sale in that country.

 

1.7
"Final Sale" means any sale, transfer, lease, exchange or other disposition or provision of a Licensed Product and/or
a Licensed Method to a Customer. A Final Sale shall be deemed to have occurred upon the earliest to occur of the following (as
applicable): (a) the transfer of title to such Licensed Product and/or Licensed Method to a Customer, (b) the shipment of such
Licensed Product to a Customer, (c) the provision of a Licensed Method to a Customer, (d) the provision of an invoice for such
Licensed Product or Licensed Method to a Customer, or (e) payment by the Customer for Licensed Products or Licensed Methods.

 

1.8
"Net Sales" means the total of the gross amount invoiced or otherwise charged (whether consisting of cash or any
other forms of consideration) for the Final Sale of Licensed Products or Licensed Methods by Licensee, or by any Affiliate, Joint
Venture or Sublicensee to Customers, less the following deductions (to the extent included in and not already deducted from the
gross amount invoiced or otherwise charged) to the extent reasonable and customary: cash, trade or quantity discounts actually
granted to Customers; sales, use, tariff, import/export duties or other excise taxes imposed on particular sales (excepting value
added taxes or income taxes); transportation charges, including insurance to the extent actually paid by the Customer; and allowances
or credits to Customers because of rejections or returns. Where Licensee or any Affiliate, Joint Venture or Sublicensee is the
Customer, then Net Sales shall be based on the gross amount normally invoiced or otherwise charged to other Customers in an arms
length transaction for such Licensed Products or Licensed Methods. For the avoidance of doubt, if Licensee or any Affiliate, Joint
Venture or Sublicensee supplies (directly or indirectly) a Product that constitutes a 8-Jul-05 Licensed
Product to any Affiliate, Joint Venture or Sublicensee and such Affiliate, Joint Venture or Sublicensee includes such Product in
another Product, then Net Sales shall be based on the total gross amount invoiced or otherwise charged for such other Product in
its entirety. If License pays a third party royalties in consideration for patent rights which are necessary in order to practice
Regents' Patent Rights then Licensee or Sublicensee, as the case may be may deduct .333% from the royalty rate due to The Regents
under this Agreement for every percentage point paid to third party in royalties, provided that in no event shall royalties or
other amounts due to The Regents in any reporting period be reduced to less than 50% of what would otherwise be due to The Regents.

 

    	2

    	 

    

 

1.9
"Sublicensee" means any third party sublicensed by Licensee to make, have made, use, sell, offer for sale or importany
Licensed Product or to practice any Licensed Method.

 

1.10
"Sublicensing Income" means income received by Licensee under or on account of Sublicenses. Sublicensing Income includes
income received by way of license issue fees, milestone payments, and the like but specifically excludes royalties on the sale
or distribution of Licensed Products or the practice of Licensed Methods. Not included in the definition of Sublicensing Income
is income received by Licensee as payment or reimbursement for research costs conducted by or for Licensee, including costs associated
with materials, equipment or clinical testing and amounts received in connection with the issuance of debt or equity.

 

1.11
"Customer" means any individual or entity that receives Licensed Products or Licensed Methods, provided however,
that Licensee or any Affiliate, Joint Venture or Sublicensee shall be deemed a Customer only if it receives Licensed Products or
Licensed Services for its own end-use and not resale.

 

2. GRANT

 

2.1
Subject to the limitations set forth in this Agreement, The Regents hereby grants to Licensee an exclusive license (the "License")
under Regents' Patent Rights, in jurisdictions where Regents' Patent Rights exist, to make, have made, use, sell, offer for sale
and import Licensed Products and to practice Licensed Methods in the Field of Use to the extent permitted by law.

 

2.2
The License is subject to all the applicable provisions of any license to the United States Government executed by The Regents
and is subject to any overriding obligations to the United States Federal Government under 35 U.S.C. §§200-212 and applicable
governmental implementing regulations.

 

2.3
The Regents expressly reserves the right to use Regents' Patent Rights and associated technology for educational and research
purposes including publication of research results and sharing research results with other non-profit institutions, and allowing
other non-profit research institutions to use Regents' Patent Rights and associated technology for the same purpose.

 

3. SUBLICENSES

 

3.1
The Regents also grants to Licensee the right to issue exclusive or nonexclusive sublicenses ("Sublicenses") to third
parties to make, have made, use sell, offer for sale or import Licensed Products and to practice Licensed Methods in any jurisdiction
in which Licensee has exclusive rights under this Agreement. To the extent applicable, sublicenses must include all of the rights
of and obligations due to The Regents (and, if applicable, the U.S. Government under 35 U.S. C. §§201-212) contained
in this Agreement.

 

3.2
Licensee must pay to The Regents 25% of all Sublicensing Income.

 

3.3
On Net Sales of Licensed Products sold or disposed of by a Sublicensee, Licensee must pay to The Regents an earned royalty
in accordance with Article 5 (Royalties) as if these were Licensee's Net Sales. Any royalties received by Licensee in excess of
royalties due to The Regents under this Paragraph 3.3 belong to Licensee.

 

    	3

    	 

    

 

3.4
Licensee must provide to The Regents a copy of each Sublicense within 30 days of execution,
and a copy of all information submitted to Licensee by Sublicensees relevant to the computation
of the payments due to The Regents under this Article 3. 

 

3.5
If this Agreement is terminated for any reason, all outstanding Sublicenses, not in default, will be assigned by Licensee to
The Regents, at the option of The Regents. The Sublicenses will remain in full force and effect with The Regents as the licensor
or sublicensor instead of Licensee, but the duties of The Regents under the assigned Sublicenses will not be greater than the duties
of The Regents under this Agreement, and the rights of The Regents under the assigned Sublicenses will not be less than the rights
of The Regents under this Agreement, including all financial consideration and other rights of The Regents.

 

4. FEES

 

4.1
In partial consideration for the License, Licensee will pay to The Regents a license issue fee of twenty thousand dollars ($20,000)
within 30 days of the Effective Date and twenty five thousand dollars ($25,000) on the first anniversary of this Agreement. This
fee is nonrefundable and is not an advance against royalties.

 

4.2
For each Licensed Product reaching the milestones indicated below, Licensee must make the following payments to The Regents
within 30 days of reaching the milestones:

 

	 	4.2a	One hundred thousand dollars ($100,000) upon the NDA filing with the U.S. Food and Drug Administration which is covered by a validly issued U.S. patent.
	 	 	 
	 	4.2b	Six hundred fifty thousand dollars ($650,000) upon approval of an NDA with the U.S. Food and Drug Administration which is covered by a validly issued U.S. patent 

 

4.3
Licensee must pay to The Regents a license maintenance fee of $ 5,000 beginning on the one-year anniversary date of the Effective
Date of this Agreement and continuing annually on each anniversary date of the Effective Date. The maintenance fee will not be
due and payable on any anniversary date of the Effective Date if on that date Licensee is commercially selling a Licensed Product
and paying an earned royalty to The Regents on the sales of that Licensed Product. The license maintenance fees are non-refundable
and are not an advance against royalties.

 

4.4
In the event that the Licensee is publicly traded, Licensee shall make, at The Regents' election, payment under sections 4.1,
4.2 & 4.3 with Licensee's publicly traded equity.

 

5. ROYALTIES

 

5.1
Licensee must pay to The Regents for sales by Licensee or its Affiliates an earned royalty of four percent (4%) of Net Sales
of Licensed Products or Licensed Methods unless reduced pursuant to Section 1.8.

 

5.2
Licensee must pay to The Regents a minimum annual royalty of $10,000 for the life of Regents' Patent Rights, beginning in the
year of the First Commercial Sale of Licensed Product. Licensee must pay the minimum annual royalty to The Regents by February
28 of each year. The minimum annual royalty will be credited against the earned royalty due and owing for the calendar year in
which the minimum payment was made.

 

    	4

    	 

    

 

5.3
Paragraphs 1.1, 1.2, 1.3 and 1.4 define Regents' Patent Rights, Licensed Products, Licensed Methods and the Field of Use so
that royalties are payable on products covered by pending patent applications and issued patents. Royalties accrue for the duration
of this Agreement.

 

5.4
Licensee must pay royalties owed to The Regents on a quarterly basis. Licensee must pay the royalties within two months of
the end of the calendar quarter in which the royalties accrued.

 

5.5
All monies due The Regents must be paid in United States funds. When Licensed Products are sold for monies other than United
States dollars, the royalties will first be determined in the foreign currency of the country in which those Licensed Products
were sold and, second, converted into equivalent United States funds. Licensee must use the exchange rate established by the Bank
of America in San Francisco, California on the last day of the calendar quarter.

 

5.6
Any tax for the account of The Regents required to be withheld by Licensee under the laws of any foreign country must be promptly
paid by Licensee for and on behalf of The Regents to the appropriate governmental authority. Licensee will use its best efforts
to furnish The Regents with proof of payment of any tax. Licensee is responsible for all bank transfer charges. All payments made
by Licensee in fulfillment of The Regents' tax liability in any particular country will be credited against fees or royalties due
The Regents for that country.

 

5.7
If at any time legal restrictions prevent the acquisition or prompt remittance of United States Dollars by Licensee with respect
to any country where a Licensed Product is sold, the Licensee shall pay royalties due to The Regents from Licensee's other sources
of United States Dollars.

 

5.8
If any patent or any claim included in Regents' Patent Rights is held invalid or unenforceable in a final decision by a court
of competent jurisdiction from which no appeal has or can be taken, all obligation to pay royalties based on that patent or claim
or any claim patentably indistinct from it will cease as of the date of that final decision. Licensee will not, however, be relieved
from paying any royalties that accrued before that decision or that is based on another patent or claim not involved in that decision.

 

5.9
No royalties will be collected or paid on Licensed Products sold to the United States Federal Government, or any agency of
the United States Government. The Licensee and its Sublicensee will reduce the amount charged for Licensed Products distributed
to the United States Government by the amount of the royalty.

 

6. DILIGENCE 

 

6.1
Upon the execution of this Agreement, Licensee must diligently proceed with the development, manufacture and sale ("Commercialization")
of Licensed Products and must earnestly and diligently endeavor to market them within a reasonable time after execution of this
Agreement and in quantities sufficient to meet the market demands for them.

 

6.2
Licensee must endeavor to obtain all necessary governmental approvals for the Commercialization of Licensed Products.

 

6.3
The Regents has the right and option to either terminate this Agreement, narrow the fields of use granted under paragraph 1.4
or reduce Licensee's exclusive license to a nonexclusive license if Licensee fails to perform any of the terms in this Paragraph
6.3. This right, if exercised by The Regents, supersedes the rights granted in Article 2 (Grant).

 

    	5

    	 

    

 

6.3a Within
twenty-four months from the Effective Date of this Agreement, Licensee will file, cross-file or transfer an investigational new
drug application (IND) relating to the Licensed Product for each field of use selected under paragraph 1.4 of this Agreement.

 

6.3b Within
five years of the Effective Date of this Agreement, initiate Phase II clinical trials for a Licensed Product for each field of
use selected under paragraph 1.4 of this Agreement.

 

6.3c Within
eight years of the Effective Date of this Agreement, initiate Phase III clinical trials for a Licensed Products for each field
of use selected under paragraph 1.4 of this Agreement.

 

6.3d Within
fourteen years of the Effective Date of this Agreement complete a First Commercial Sale of a Licensed Product for each field of
use selected under paragraph 1.4 of this Agreement.

 

6.4
Licensee has the sole discretion for making all decisions as to how to commercialize any Licensed Product.

 

7. PATENT FILING, PROSECUTION
AND MAINTENANCE

 

7.1
As long as Licensee is paying prosecution costs, The Regents will file, prosecute and maintain the patents and applications
comprising Regents' Patent Rights. These patents will be held in the name of The Regents and will be obtained with counsel of The
Regents' choice. The Regents must provide Licensee with copies of each patent application, office action, response to office action,
request for terminal disclaimer, and request for reissue or reexamination of any patent or patent application under Regents' Patent
Rights. The Regents will consider any comments or suggestions by Licensee: The
Regents is entitled to take action to preserve rights and minimize costs whether or not Licensee has commented. 

 

7.2
Licensee will bear all costs incurred prior to and during the term of this Agreement in the preparation, filing, prosecution
and maintenance of patent applications and patents in Regents' Patent Rights. Prosecution includes interferences, oppositions and
any other inter parties matters originating in a patent office. Licensee must send payment to The Regents within 30 days of Licensee's
receipt of an invoice.

 

7.3
Licensee has the right to request patent protection on the Invention in foreign countries if the rights are available. Licensee
must notify The Regents of its decision within eight months of the filing of the corresponding United States patent application.
This notice must be in writing and must identify the countries desired. The absence of this notice from Licensee to The Regents
will be considered an election not to secure foreign rights.

 

7.4
Eight months after the filing of the corresponding United States application, but not sooner, The Regents will have the right
to file patent applications at its own expense in any country which Licensee has not identified in written notice provided by 7.3.
These applications and resulting patents will not be subject to this Agreement.

 

7.5
Licensee's obligation to underwrite and to pay all United States and foreign patent costs will continue for as long as this
Agreement remains in effect. Licensee may terminate its obligations with respect to any given patent application or patent upon
three months written notice to The Regents. The Regents will use its best efforts to curtail patent costs chargeable to Licensee
under this Agreement after this notice is received from Licensee. The Regents may continue prosecution or maintenance of these
application(s) or patent(s) at its sole discretion and expense, and Licensee will have no further rights or licenses to them.

 

    	6

    	 

    

 

7.6
The Regents will use its best efforts to not allow any Regents' Patent Rights for which Licensee is licensed and is underwriting
the costs of to lapse or become abandoned without Licensee's authorization or reasonable notice, except for the filing of continuations,
divisionals, or the like which substitute for the lapsed application.

 

8. PATENT INFRINGEMENT

 

8.1
In the event that The Regents (to the extent of the actual knowledge of the licensing professional responsible for the administration
of this Agreement) or the Licensee learns of infringement of potential commercial significance of any patent licensed under this
Agreement, the knowledgeable party will provide the other (i) with written notice of such infringement and (ii) with any evidence
of such infringement available to it (the "Infringement Notice"). During the period in which, and in the jurisdiction
where, the Licensee has exclusive rights under this Agreement, neither The Regents nor the Licensee will notify a third party (including
the infringer) of infringement or put such third party on notice of the existence of any Patent Rights without first obtaining
consent of the other. If the Licensee puts such infringer on notice of the existence of any Patent Rights with respect to such
infringement without first obtaining the written consent of The Regents and if a declaratory judgment action is filed by such infringer
against The Regents, then Licensee's right to initiate a suit against such infringer for infringement under Paragraph 8.2 below
will terminate immediately without the obligation of The Regents to provide notice to the Licensee. Both The Regents and the Licensee
will use their diligent efforts to cooperate with each other to terminate such infringement without litigation.

 

8.2
If infringing activity of potential commercial significance by the infringer has not been abated within ninety (90) days following
the date the Infringement Notice takes effect, then the Licensee may institute suit for patent infringement against the infringer.
The Regents may voluntarily join such suit at its own expense, but may not thereafter commence suit against the infringer for the
acts of infringement that are the subject of the Licensee's suit or any judgment rendered in the suit. The Licensee may not join
The Regents in a suit initiated by Licensee without The Regents' prior written consent. If, in a suit initiated by the Licensee,
The Regents is involuntarily joined other than by the Licensee, then the Licensee will pay any costs incurred by The Regents arising
out of such suit, including but not limited to, any legal fees of counsel that The Regents selects and retains to represent it
in the suit.

 

8.3
If, within a hundred and twenty (120) days following the date the Infringement Notice takes effect, infringing activity of
potential commercial significance by the infringer has not been abated and if the Licensee has not brought suit against the infringer,
then The Regents may institute such suit for patent infringement against the infringer. If The Regents institutes such suit, then
the Licensee may not join such suit without The Regents consent and may not thereafter commence suit against the infringer for
acts of infringement that are subject to The Regents suit or any judgment rendered in that suit. 

 

8.4
Any recovery or settlement received in connection with any suit will first be shared by The Regents and the Licensee equally
to cover any litigation costs each incurred and next shall be paid to The Regents or the Licensee to cover any litigation costs
it incurred in excess of the litigation costs of the other. In any suit initiated by the Licensee, any recovery in excess of litigation
costs will be shared between Licensee and The Regents as follows: (a) for any recovery other than amounts paid for willful infringement:
(i) The Regents will receive fifteen percent (15%) of the recovery if The Regents was not a party in the litigation and did not
incur any litigation costs, (ii) The Regents will receive twenty-five percent (25%) if The Regents was party in the litigation,
but did not incur any litigation costs, including provisions of Paragraph 8.2 above, and (iii) The Regents will receive fifty percent
(50%) of the recovery if The Regents incurred any litigation costs in connection with the litigation; and (b) for any recovery
for willful infringement, The Regents will receive fifty percent (50%) of the recovery. In any suit initiated by The Regents, any
recovery in excess of litigation costs will belong to The Regents. The Regents and the Licensee agree to be bound by all determinations
of patent infringement, validity and enforceability (but no other issue) resolved by any adjudicated judgment in a suit brought
in compliance with this Article 8 (Patent Infringement).

 

    	7

    	 

    

 

8.5
Any agreement made by the Licensee for purposes of settling litigation or other dispute shall comply with the requirements
of Article 3 (Sublicenses) of this Agreement.

 

8.6
Each party will cooperate with the other in litigation proceedings instituted hereunder but at the expense of the party who
initiated the suit (unless such suit is being jointly prosecuted by the parties).

 

8.7
Any litigation proceedings will be controlled by the party bringing the suit, except that The Regents may be represented by
counsel of its choice in any suit brought by the Licensee.

 

9. PROGRESS AND ROYALTY
REPORTS

 

9.1
Beginning January 31, 2006, Licensee must submit to The Regents semiannual progress reports covering Licensee's activities
related to the development and testing of all Licensed Products and the obtaining of the governmental approvals necessary for marketing.
These progress reports must be made for each Licensed Product until its First Commercial Sale.

 

9.2
The progress reports submitted under Paragraph 9.1 must include the following topics:

 

9.2a Summary
of work completed.

 

9.2b Key scientific
discoveries.

 

9.2c Summary
of work in progress.

 

9.2d Current
schedule of anticipated events or milestones.

 

9.2e Market
plans for introduction of Licensed Products.

 

9.2f A summary
of resources ( dollar value) spent in the reporting period.

 

9.3.
Licensee must notify The Regents if Licensee or any of its Sublicensees or Affiliates ceases to be a small entity (as defined
by the United States Patent and Trademark Office) under the provisions of 35 U.S.C. §41(h).

 

9.4
Licensee must report the date of the First Commercial Sale in the royalty report immediately following that Sale.

 

 

9.5 After
the First Commercial Sale of each Licensed Product, Licensee must make quarterly royalty reports to The Regents by February 28,
May 31, August 31 and November 30 of each year (i.e., within two months from the end of each calendar quarter). Each royalty report
must cover Licensee's most recently completed calendar quarter and must show:

 

    	8

    	 

    

 

9.5a Gross sales
and Net Sales of any Licensed Product.

 

9.5b Number of
each type of Licensed Product sold.

 

9.5c Royalties
payable to The Regents.

 

9.6 Licensee must state in its
royalty report if it had no sales of any Licensed Product.

 

10. BOOKS AND RECORDS

 

10.1 Licensee
must keep accurate books and records of all Licensed Products manufactured, used or sold. Licensee must preserve these books and
records for at least five years from the date of the royalty payment to which they pertain.

 

 

 

10.2 The
Regents' representatives or agents are entitled to inspect these books and records at reasonable times. The Regents will pay the
fees and expenses of these inspections. If an error · favoring
Licensee of more than 5% of the total annual royalties is discovered, then Licensee will pay the fees and expenses of these inspections.

 

11. LIFE OF THE AGREEMENT

 

11.1 Unless
otherwise terminated by operation of law or by acts of the parties in accordance with the terms of this Agreement, this Agreement
is in force from the Effective Date recited on page one and remains in effect for the life of the last-to-expire patent in Regents'
Patent Rights, or until the last patent application licensed under this Agreement is abandoned and no patent in Regents' Patent
Rights ever issues.

 

11.2 Upon
termination of this Agreement, Licensee will have no further right to make, have made, use or sell any Licensed Product except
as provided in Article 14 (Disposition of Licensed Products on Hand Upon Termination).

 

11.3 Any
expiration or termination of this Agreement will not affect the rights and obligations set forth in the following Articles:

 

Article 10

Article 14

Article 16

Article 17

Article 18

Article 23

Article 24

Books and Records

Disposition of Licensed
Products on Hand upon Termination.

Use of Names and Trademarks.

Warranties

Indemnification.

Failure to Perform.

Governing Law

 

    	9

    	 

    

 

12. TERMINATION BY THE
REGENTS 

 

12.1
If Licensee violates or fails to perform any material term or covenant of this Agreement,
then The Regents may give written notice of the default ("Notice of Default") to
Licensee. If Licensee does not repair the default within 60 days after the effective date of the Notice of Default, then The Regents
has the right to terminate this Agreement and the License by a second written notice ("Notice of Termination") to Licensee.
If The Regents sends a Notice of Termination to Licensee, then this Agreement automatically terminates on the effective date of
this notice. Termination does not relieve Licensee of its obligation to pay any royalty or fees owing at the time of termination
and does not impair any accrued right of The Regents. 

 

13. TERMINATION BY LICENSEE

 

13.1
Licensee has the right at any time to terminate this Agreement in whole or with respect to any portion of Regents' Patent Rights
by giving written notice to The Regents. This notice of termination will be subject to Article 19 (Notices) and will be effective
90 days after the effective date of the notice.

  

13.2
Any termination in accordance with Paragraph 13.1 does not relieve Licensee of any obligation or liability accrued prior to
termination. Nor does termination rescind anything done
by Licensee or any payments made to The Regents prior to the effective date of termination. Termination does not affect in any
manner any rights of The Regents arising under this Agreement prior to termination. 

 

14.
DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION

 

14.1
Upon termination of this Agreement, Licensee will have the right to dispose of all previously made or partially made Licensed
Products, but no more, within a period of six months. But Licensee must submit royalty reports on the sale of these Licensed Products
and must pay royalties at the rate and at the time provided in this Agreement.

 

15. PATENTMARKING

 

15.1
Licensee must mark all Licensed Products made, used or sold under the terms of this Agreement, or their containers, in accordance
with the applicable patent marking laws.

 

16. USE OF NAMES AND TRADEMARKS

 

16.1
Neither party is permitted to use any name, trade name, trademark
or other designation of the other party or its employees (including contraction, abbreviation or simulation of any of the foregoing)
in advertising, publicity or other promotional activity.
Unless required by law, Licensee is expressly prohibited from using the name "The Regents of the University of California"
or the name of any campus of the University of California. 

 

17. LIMITED WARRANTY

 

17.1
The Regents warrants that it has the lawful right to grant this license to Licensee.

 

17.2
This License and the associated Invention are provided WITHOUT WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE
OR ANY OTHER WARRANTY, EXPRESS OR IMPLIED. THE REGENTS MAKE NO REPRESENTATION OR WARRANTY THAT ANY LICENSED PRODUCT WILL NOT INFRINGE
ANY PATENT OR OTHER PROPRIETARY RIGHT.

 

    	10

    	 

    

 

17.3
IN NO EVENT WILL THE REGENTS BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THIS
LICENSE OR THE USE OF THE INVENTION OR LICENSED PRODUCTS OR THE USE OR THE PRACTICE OF LICENSED METHODS.

 

17.4
Nothing in this Agreement will be construed as:

 

17.4a A
warranty or representation by The Regents as to the validity or scope of any Regents' Patent Rights.

 

17.4b A
warranty or representation that anything made, used, sold or otherwise disposed of under any license granted in this Agreement
is or will be free from infringement of patents of third parties.

 

17.4c Obligate
The Regents to bring or prosecute actions or suits against third parties for patent infringement except as provided in Article
8 (Patent Infringement).

 

17.4d Conferring
by implication, estoppel or otherwise any license or rights under any patents of The Regents other than Regents' Patent Rights
as defined herein, regardless of whether such patents are dominant or subordinate to Regents' Patent Rights.

 

17.4e Obligate
The Regents to furnish any know-how not provided in Regents' Patent Rights.

 

18. INDEMNIFICATION 

 

18.1
Licensee will, and will require its Sublicensees to, indemnify, hold harmless and defend The Regents, its officers, employees,
and agents, the sponsors of the research that led to the invention, the inventors of the patents and patent applications in Regents'
Patent Rights and their respective employers from and against any and all liability, claims, suits, losses, damages, costs, fees
and expenses resulting from or arising out of exercise of this license or any sublicense. Indemnification indudes but is not limited
to products liability. If The Regents, in its sole discretion, believes that there will be a conflict of interest or it will not
otherwise be adequately represented by counsel chosen by Licensee to defend The Regents in accordance with this Paragraph 18.1,
then The Regents may retain counsel of its choice to represent it, and Licensee will pay all expenses for such representation.

 

18.2
For the first use of the Licensed Product for humans and thereafter, Licensee, at its sole cost and expense, must insure its
activities in connection with the work under this Agreement and obtain, keep in force and maintain Comprehensive or Commercial
Form General Liability Insurance (contractual liability included) with limits as follows:

 

18.2a
Each occurrence $5,000,000

18.2b
Products/completed operations aggregate $10,000,000

18.2c Personal
and advertising injury $5,000,000

18.2d General aggregate
(commercial form only) $10,000,000

 

    	11

    	 

    

 

18.3
Licensee expressly understands, however, that the coverages and limits in Paragraph 18.2 do not in any way limit the Licensee's
liability. Licensee must furnish The Regents with certificates of insurance evidencing compliance with all requirements. Licensee's
insurance must:

 

18.3a Provide for 30-day advance
written notice to The Regents of any modification.

18.3b Indicate that The Regents
of the University of California is endorsed as an Insured under the coverages listed in Paragraph 18.2.

18.3c Include a
provision that the coverages will be primary and will not participate with nor will be excess over any valid and collective insurance
or program of self-insurance carried or maintained by The Regents. 

 

18.4 The Regents shall
notify Licensee in writing of any claim or suit brought against The Regents in respect of which The Regents intends to invoke the
provisions of this Article 18 (Indemnification). Licensee shall keep The Regents informed on a current basis of its defense of
any claims under this Article 18 (Indemnification).

 

    	12

    	 

    

 

19. NOTICES 

 

19.1 Any notice or payment
required to be given to either party must be sent to the respective address given below and is effective: (a) on the date of delivery
if delivered in person, (b) five days after mailing if mailed by first-class certified mail, postage paid, or ( c) on the next
business day if sent by overnight delivery. Either party may change its designated address by written notice.

 

	 	For Licensee: 	GENERAL FIBER, INC. 
	 	 	801 Brickell Avenue 9th  Floor Suite 942 
	 	 	Miami, Florida 
	 	 	Attention: Nicholas Stergis 
	 	 	 
	 	For The Regents: 	The Regents of the University of California University of California, Los Angeles Office of Intellectual Property Administration 10920 Wilshire Blvd., Suite 1200 Los Angeles, California 90095-1406 
	 	 	Attention: Director 

 

20. ASSIGNABILITY 

 

20.1 This Agreement
is binding upon and inures to the benefit of The Regents, its successors and assigns. But it is personal to Licensee and assignable
by Licensee only with the written consent of The Regents. The consent of The Regents will not be required if the assignment is
in conjunction with the transfer of all or substantially all of the business of Licensee to which this license relates.

 

21. LATE PAYMENTS 

 

21.1
For each royalty payment or fee not received by The Regents when due, Licensee must pay to The Regents a simple interest charge
of 10% per annum to be calculated from the date payment was due until it was actually received by The Regents.

 

22. WAIVER 

 

22.1 The waiver
of any breach of any term of this Agreement does not waive any other breach of that or any other term.

 

23. FAILURE TO PERFORM

 

23.1
If either party takes legal action against the other because of a failure of performance due under this Agreement, then the
prevailing party is entitled to reasonable attorney's fees in addition to costs and necessary disbursements.

 

24. GOVERNING LAW 

 

24.1
THIS AGREEMENT IS TO BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, but the scope and
validity of any patent or patent application will be governed by the applicable laws of the country of the patent or patent application.

 

    	13

    	 

    

 

25. GOVERNMENT APPROVAL
OR REGISTRATION

 

25.1
If this Agreement or any associated transaction is required by the law of any nation to be either approved or registered with
any governmental agency, Licensee will assume all legal obligations to do so. Licensee will notify The Regents if it becomes aware
that this Agreement is subject to a United States or foreign government reporting or approval requirement. Licensee will make all
necessary filings and pay all costs including fees, penalties, and all other out-of-pocket costs associated with such reporting
or approval process.

 

26. EXPORT CONTROL LAWS

 

26.1
Licensee must observe all applicable United States and foreign laws with respect to the transfer of Licensed Products and related
technical data to foreign countries, including the International Traffic in Arms Regulations (IT AR) and the Export Administration
Regulations.

 

27. PREFERENCE FOR UNITED
STATES INDUSTRY

 

27.1
Because this Agreement grants an exclusive right to a particular use of the Invention, Licensee must manufacture in the United
States any products embodying this Invention or produced through the Invention's use to the extent required by 35 U.S.C. §200-212.

 

28. FORCE MAJEURE

 

28.1
The parties will be excused from any performance required under this Agreement if performance is impossible or unfeasible due
to any catastrophe or other major event beyond their reasonable control, including war, riot, or insurrection; lockouts or other
serious labor disputes; and floods, fires, explosions, or other natural disasters. When such events abate, and in any event within
one year, the parties' respective obligations will resume.

 

29. CONFIDENTIALITY 

 

29.1
If either party discloses confidential information to the other party, the disclosing party will designate this information
as confidential by appropriate legend or instruction, and the receiving party will:

 

29.1a Use
the same degree of care to maintain the secrecy of the confidential information as it uses to maintain the secrecy of its own information
of like kind.

 

29.1 b Use
the confidential information only to accomplish the purposes of this Agreement.

 

29.2
Neither party will disclose confidential information received from the other party except to its employees, customers, distributors
and other agents who are bound to it by similar obligations of confidence and only as required to accomplish the purposes of this
Agreement.

 

29.3
Neither party will have any confidentiality obligation with respect to the confidential information belonging to or disclosed
by the other party that:

 

29.3a The
receiving party can demonstrate by written records was previously known to it.

 

29.3b The
receiving party lawfully obtained from sources under no obligation of confidentiality.

 

    	14

    	 

    

 

29.3c Is
or becomes publicly available other than through an act or omission of the receiving party or any of its employees.

 

29.3d Is
required to be disclosed under the California Public Records Act, governmental audit requirement or other requirement of law.

 

29.4
The provisions of this Article 29 will continue III effect for five years after expiration or termination of this Agreement.

 

29.5
The Regents is free to release to the inventors and senior administrators employed by The Regents the terms and conditions
of this Agreement. If such release is made, then The Regents shall give notice of the confidential nature and shall request that
the recipient not disclose such terms and conditions to others. If a third party inquires whether a license to Regents' Patent
Rights is available, then The Regents may disclose the existence of this Agreement and the extent of the grant in Article 2 (Grant)
to such third party, but will not disclose the name of Licensee or any other terms or conditions of this Agreement, except where
The Regents is required to release information under the California Public Records Act, a governmental audit requirement, or other
applicable law.

 

30. MISCELLANEOUS 

 

30.1
The headings of the several sections are inserted for convenience of reference only and are not intended to be a part of, or
to affect the meaning or interpretation of, this Agreement.

 

30.2
This Agreement is not binding upon the parties until it has been signed below on behalf of each party, in which event it becomes
effective as of the date recited on page one.

 

30.3
No amendment or modification of this Agreement will be valid or binding upon the parties unless made in writing and signed
by each party.

 

30.4
This Agreement embodies the entire understanding of the parties and supersedes all previous communications, representations
or understandings, either oral or written, between the
parties relating to the subject matter hereof, except for the Secrecy Agreement dated 10-20-03, which continues to the extent
it is not inconsistent with this Agreement. 

 

30.5
If any part of this Agreement is for any reason found to be unenforceable, all
other parts nevertheless remain enforceable as long as a party's rights under this Agreement are not materially affected.
In lieu of the unenforceable provision, the parties will substitute or add as part of this
Agreement a provision that will be as similar as possible in economic and business objectives as was intended by the unenforceable
provision. 

 

Both
The Regents and Licensee have executed this Agreement in duplicate originals by their authorized officers on the dates written
below:

 

	GENERAL FIBER, INC 	THE REGENTS OF THE UNIVERSITY OF CALIFORNIA 
	 	 
	By: /s/ Nicholas Stergis	By: /s/ Emily Loughran
	Name: Nicholas Stergis	Name: Emily Loughran
	Title: Chief Operating Officer	Title: Director of Licensing
	 	 
	Dated: July 11, 2005	Dated: July 5, 2005

 

    	15

    	 

    

 

APPENDIX A

 

REGENTS’ PATENT RIGHTS

 

U.S. Patent Application No. 10/131,384 entitled
“Estriol Therapy for Multiple Sclerosis and Other Autoimmune Diseases,” filed April 24, 2002, which was based on Provisional
ApplicationNo. 60/286,842 filed 4/25/01 (UCLA Case Nos 1998-531-1,2) by Dr. Voskuhl, and assigned to The Regents.

 

U.S. Patent Application No. 10/984,364 entitled “The Use
of Estrial and Other Estranes, Estrogen and Estrogen Receptor Active Compositions in the Treatment of Psoriasis...,”
filed November 8, 2004, (UCLA Case No. 2004-101-3) by Drs. Rhonda R. Voskuhl, Gerald D. Weinstein and Jenny E. Murase and assigned
to The Regents.

 

European Patent Application No. 02729034.5 based on PCT/US02/13407,
filed April 25, 2002 entitled “Estriol Therapy for Multiple Sclerosis and Other Autoimmune Diseases” by Dr. Rhonda
R. Voskuhl.

 

    	16

    	 

    

  

EXCLUSIVE LICENSE AGREEMENT

 

TABLE OF CONTENTS

 

	 	ARTICLE PAGE NUMBER 
	RECITALS	1 
	 	 
	1. DEFINITIONS 	1 
	 	 
	2. GRANT 	3 
	 	 
	3. SUBLICENSES	3 
	 	 
	4. FEES 	4 
	 	 
	5. ROYALTIES 	4 
	 	 
	6. DILIGENCE 	5 
	 	 
	7. PATENT FILING, PROSECUTION AND MAINTENANCE 	6 
	 	 
	8. PATENT INFRINGEMENT 	7 
	 	 
	9. PROGRESS AND ROYALTY REPORTS 	8 
	 	 
	10. BOOKS AND RECORDS 	9 
	 	 
	11. LIFE OF THE AGREEMENT	9 
	 	 
	12. TERMINATION BY THE REGENTS	10 
	 	 
	13. TERMINATION BY LICENSEE	10 
	 	 
	14. DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION 	10 
	 	 
	15. PATENT MARKING 	10 
	 	 
	16. USE OF NAMES AND TRADEMARKS	10 
	 	 
	17. LIMITED WARRANTY 	10 
	 	 
	18. INDEMNIFICATION	11 
	 	 
	19. NOTICES	12 
	 	 
	20. ASSIGNABILITY 	12 
	 	 
	21. LATE PAYMENTS 	13 
	 	 
	22. WAIVER 	13 
	 	 
	23. FAILURE TO PERFORM 	13 
	 	 
	24. GOVERNING LAWS 	13 
	 	 
	25. GOVERNMENT APPROVAL OR REGISTRATION 	13 
	 	 
	26. EXPORT CONTROL LAWS 	13 
	 	 
	27. PREFERENCE FOR UNITED STATES INDUSTRY 	13 
	 	 
	28. FORCE MAJEURE 	13 
	 	 
	29. CONFIDENTIALITY 	14 
	 	 
	30. MISCELLANEOUS 	14 
	 	 
	APPENDIX A 	 

 

    	17

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