Document:

EX-4.28 EXCLUSIVE RAGNAROK LICENSE

 

Exhibit 4.28

EXCLUSIVE RAGNAROK

AUTHORIZATION TO USE AND DISTRIBUTE SOFTWARE

AGREEMENT

THIS AUTHORIZATION TO USE AND DISTRIBUTE SOFTWARE AGREEMENT (this “Agreement”) is made and
entered into on this 15th day of August, 2004, by and between:

Gravity Corporation, a corporation duly organised and existing under the laws of the Republic of
Korea (“Korea”) and having its offices at 3rd Fl. Shingu Bldg., 620-2, Shinsa-Dong,
Kangnam-Ku, Seoul, 135-894, Korea (“Gravity”); and,

Level Up! Interactive S.A., a company duly organized and existing under the laws of the Republic
Federative of Brazil (“Brazil”), headquartered at Rua Geraldo Flausino Gomes, no 78, 11o
floor, cj. 113 and 114, Brooklin, 04575-060, in the city of São Paulo, State of São Paulo, enrolled
with the Ministry of Finance Tax Registration Number under CNPJ/MF 06.142.151/0001-60 (“Level Up!”)

RECITALS:

WHEREAS, Gravity has developed and possesses all rights in computer programs of online game
“Ragnarok” (“Game”) as well as the know-how and technical information on the installation,
design, service and use of the Game;

WHEREAS, Level Up! desires to enter into an exclusive authorization to use and distribute software
agreement with Gravity pursuant to which Level Up! will distribute and market the Game in the
territories specified below; and,

WHEREAS, Gravity desires to grant such authorization to use and distribute software to Level Up!
under the mutual terms and conditions herein below specified.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other
good and valuable consideration, the parties hereto agree as follows:

Article 1

Definitions

The terms defined in this Article shall have the meaning ascribed to them herein whenever they are
used in this Agreement, unless otherwise clearly indicated by the context.

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	1.1	 	“Agreement” shall mean this Authorization to Use and Distribute Software Agreement,
and all annexes, amendments and supplements hereto.
	 
	1.2	 	“Confidential Information” shall mean all materials, know-how, software or other
information including, but not limited to, proprietary information and materials regarding a
Party’s technology, products, business information or objectives, including the software for
the Game and Technical Information under this Agreement, which is designated as confidential
in writing by the providing Party or which is the type that is customarily considered to be
confidential information by persons engaged in similar activities.
	 
	1.3	 	“End Users” shall mean the users of the Game through a network game service system
established and operated by Level Up! with individually assigned ID Numbers for each End User.
	 
	1.4	 	“Game” shall have the meaning stipulated in the recitals above, including any
modified or advanced version of the Game distributed by Gravity for error correcting, updating
or debugging purpose, under the same title. Any subtitled version, series or sequel to the
Game which may be developed or distributed by Gravity after the execution of this Agreement
shall be clearly excluded from the scope of this Agreement.
	 
	1.5	 	“ID Number” shall mean an identification number assigned to each End User, with which
such End User can access and use the network game service system established and operated by
Level Up!.
	 
	1.6	 	“English Version” shall mean the Game provided in the English language.
	 
	1.7	 	“Intellectual Property” shall mean all patents, designs, utility models, copyrights,
know-how, trade secrets, trademarks, service mark, trade dress and any other intellectual
property rights in or related to the Game or Technical Information.
	 
	1.8	 	“Local Language” shall mean the Portuguese language as used in the Territory.
	 
	1.9	 	“Local Version” shall mean the Game provided in the Local Language.

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	1.10	 	“Parties” and “Party” shall mean Gravity and Level Up!, collectively and
individually, respectively.
	 
	1.11	 	“Servers” shall mean the servers established, installed and operated by Level Up!
within the Territory only for the service of Game to End Users in the Territory.
	 
	1.12	 	“Service-Sales Amount” shall mean the total service-sales amount that has been paid
by End Users for the Game, including the amounts paid by way of prepaid card, and calculated
by the billing system.
	 
	1.13	 	“Technical Information” shall mean the software, know-how, data, test result,
layouts, artwork, processes, scripts, concepts and other technical information on or in
relation to the Game and the installation, operation, maintenance, service and use thereof.
	 
	1.14	 	“Territory” shall mean Brazil.

Article 2

Grant of Authorization

	2.1	 	Gravity hereby grants to Level Up!, subject to the terms and conditions contained in this
Agreement, the exclusive, copyright-bearing and non-transferable Authorization (the
“Authorization”) to service, use, promote, distribute and market the Game to End Users and to
use the Technical Information for such purpose within the Territory, and to grant an
authorization subject, however, to the prior written approval of Gravity of the identity of
the Gravity’s approval shall not be required for the terms of the authorized agreement between
Level Up! and Sub-Authorized.
	 
	2.1.2	 	The service, use, promotion, distribution and marketing of the Game by Level Up! under this
Agreement shall be made in the Local Language using the Local Version in the Territory.
Gravity shall provide Level Up! with the game script and any service, use, promotion,
distribution and marketing of the Game outside the Territory and any use of the Technical
Information for any purpose other than performance under this Agreement are strictly
prohibited.
	 
	2.3	 	Level Up! shall provide services of the Game only by the IBM PC on-line method (excluding
mobile access) using the Servers. However, in consideration of the current level of
development of information technology in the Territory, which primarily operates on a
narrow-band basis, Level Up! shall be allowed to manufacture, distribute and sell the Game in
a compact disk (“CD”) format.

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	2.4	 	The Game shall be serviced, promoted, distributed and marketed under the titles, trademark,
character names and other names of the Game (“Title”) as originally created and used
by Gravity, provided, however, that if a change in any of such Titles is required due to any
special lingual or social circumstance of the Territory, the Parties shall decide and use new
Title (“New Title”) for the Game. All of the rights in or to the Title and New Title
shall be exclusively owned by Gravity and Level Up! shall not use any such Title or New Title
in a manner that falls outside the scope of this Agreement without the prior written approval
of Gravity.
	 
	2.5	 	All of the rights in or to the Game, except as granted under this Agreement, including but
not limited to the rights to the character business of the Game, shall remain exclusively with
Gravity. However, Gravity will grant to Level Up! the right of first negotiation for sixty
(60) days to produce and/or sell and distribute in the Territory merchandise relating to the
Game, including, but not limited to, character dolls, reproductions of the characters in
collaterals, and such other merchandising accessories, under a separate merchandising
agreement. Such right of first negotiation shall include the right of Level Up! to match any
written offer received by Gravity from any third party. Level Up! shall also have the right of
first negotiation for thirty (30) days to acquire the rights to all new game titles of Gravity
from the date when such new game is available in the Territory or the date that Gravity gives
Level Up! written notice, whichever date is later. Also included is the right of Level Up! to
match any offer received by Gravity from any party. If Level Up! fails to exercise such right,
Gravity may grant the Authorization for a new game title to the offering party, provided the
terms of such authorization shall not be more favourable than those offered and rejected by
the Level Up!, and provided further that Gravity shall grant such authorization to the
offering party no later than thirty (30) days from expiration of Level Up!’s right of first
negotiation. If the offering party renews its offer beyond this thirty (30) day period, then
Level Up! shall again be immediately notified by Gravity and the Level Up!’s right of first
negotiation shall again come into effect.

	 	2.5.1	 	Gravity shall notify Level Up! in writing within seven (7) days upon receipt
of an offer from any party relating to merchandise or new games as described above.

Article 3

Delivery of Game

	3.1	 	Subject to the terms and conditions of this Agreement, Gravity shall provide Level Up! with
its full assistance and cooperation, including preparation of the Local Language Version and
providing technical assistance, in order to enable a launch of the beta service and commercial
service of the Game in the Territory.

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	3.2	 	Gravity shall deliver the Local Language Version of the Game to the Level Up! at its servers
in Brazil for testing, not later than ninety (90) days from the date of execution of this
Agreement. The beta test of the Game shall commence not later than fifteen (15) days from
initial acceptance of the Local Language Version by the Level Up!. Level Up! shall launch the
commercial service of the Game in the Territory within one hundred twenty (120) days from the
date of launch of the beta service of the Game, provided, however, that all defects and bugs
detected in the Game during the beta service are corrected or rectified by Gravity. The
Parties agree to cooperate with each other and exert their best efforts to launch the services
of the Game in accordance with the above schedule in this Section 3.2. The above target dates
for launching the services of the Game may be changed by mutual agreement between the Parties.
	 
	3.3	 	Once Level Up! receives the English Version and technical documents on the Game (collectively
“Delivery Materials”) from Gravity, Level Up! shall perform its review and test
promptly and inform Gravity of any defect in or modifications that have to be made to the
Delivery Materials within forty five (45) days after receipt thereof.

	 	3.3.1	 	Level Up!’s failure to so inform within the designated period shall be
regarded as acceptance by Level Up! of the Delivery Materials, and any revision or
modification of any of the Delivery Materials which may be made by Gravity thereafter
upon the request by Level Up! shall be at Level Up!’s sole expense. Upon the request
of Level Up! and Gravity’s approval thereon, Level Up! shall provide the translated
transcript of the Game into the Local Language and Gravity shall prepare Local Version
by incorporating such translation into the Game. Level Up! shall guarantee the
accuracy of such translation in the Local Version and all of the rights in or related
to Local Version shall be exclusively owned by Gravity. Level Up! hereby assigns all
of its right on the translation and promises not to claim any right or reimbursement
on the translation or Local Version in any case. It is understood however that any
defects in the game that appear after said forty five (45) day period shall continue
to be rectified by Gravity.

	3.4	 	The Game shall be serviced in the Territory only in the manners permitted by Gravity under
this Agreement. Level Up! shall be strictly prohibited from any modification, amendment or
revision of any part of the Game including the title of the Game and the name of the
characters in the Game, without the prior written approval of Gravity.

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Article 4

Technical Assistance

	4.1	 	During the term of this Agreement, Gravity shall provide Level Up! free of charge with the
technical assistance, and technical support and maintenance needed and requested by Level Up!
to enable the latter to provide and maintain high-quality service for the Game, including, but
not limited to software installation and set-up, maintenance support, patch updates in
connection with the Game and the localization of the Game into the English Version, training
Level Up!’s technical personnel in respect of the maintenance and operation of the Game
provided that, any and all expenses actually incurred by any engineers dispatched by Gravity
to perform the above technical assistance in this Section 4.1, including, without limitation,
economy or business class airfare, lodging, food and other general living expenses incurred
during their stay at Level Up!’s premises, shall be borne by Level Up!. The Parties shall
agree in writing on the budget for the aforesaid expenses prior to Gravity’s incurring the
same.
	 
	4.2	 	Gravity shall, upon the request of Level Up!, dispatch its engineers to Level Up! for the
installation of Servers and training of Level Up!’s personnel. The total period for such
technical assistance excluding the travelling time shall not exceed ten (10) man days [based
on eight (8) hours of work per engineer per day], and any further assistance through dispatch
of Gravity’s engineers shall be determined by the mutual agreement of the Parties. After the
initial dispatch by Gravity of its engineers for the said 10 man-day period, the salaries of
Gravity’s engineers for the dispatched period shall be reimbursed by Level Up! to Gravity. All
the expenses incurred by the engineers of Gravity for economy or business class airfare,
lodging and food and other general living expenses during their stay for the period of
technical assistance shall be borne by Level Up! provided that, the same are within the budget
as agreed upon by the Parties under Section 4.1.
	 
	4.3	 	During the term of this Agreement, Gravity shall receive Level Up!’s personnel in its office
in Korea for training with respect to the installation and service of the Game and the
installation, maintenance and operation of the Servers. The number of the trainees from Level
Up! shall not exceed three (3) persons at one time and the total period
of training shall not exceed seven (7) man-days [based on eight (8) hours of training per
trainee per day], unless otherwise agreed in writing by Gravity. All of the expenses for
travel, lodging, food and other general living expenses incurred by such dispatched
personnel of Level Up! shall be borne by Level Up!.

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	4.4	 	Any further assistance may be rendered by Gravity upon mutual agreement of the Parties.
	 
	4.5	 	Each Party shall be fully responsible and fully indemnify the other Party for the behaviour
of and activities performed by its employees and personnel during their stay at the other
Party’s facilities.
	 
	4.5.1	 	Both parties agree to cooperate fully and in good faith in all technical matters relating to
the operation of the Game, in order to maintain good service to the Users.
	 
	4.6	 	Both parties agree to have the separate Service Providing Amendment to be attached to the
agreement for dispatching the Gravity’s staff within forty five (45) days from the execution
date of this Agreement, and the minimum amount of dispatching the two (2) Gravity’s staffs
shall be fifty thousand US dollars (USD 50.000,00) annualy.

	 	4.6.1	 	The Parties shall enter into a separate agreement regarding the amount that
shall be paid for the dispatching of the two (2) Gravity’s staffs.
	 
	 	4.6.2	 	The following expenses shall be covered by the amount referred to in the
Section 4.6 above:

	 	4.6.2.1	 	Daily Allowance to be paid to the personnel in the Local Office, which
shall be no less than thirty US dollars (30) US Dollars per day.
	 
	 	4.6.2.2	 	Accommodation for two (2) of Gravity’s staffs.
	 
	 	4.6.2.3	 	Basic Salaries of the Gravity’s staffs according to the separate agreement
foresee in Section 4.6 above.

	4.7	 	The terms and conditions of staying for the staffs shall be lasted until until “Ragnarok’s”
commercial service is over and reviewed at each six (6) months.

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Article 5

Payment

	5.1	 	In consideration of the Authorization and technical assistance granted under this Agreement,
Level Up! shall pay the following amounts to Gravity:

	5.2.	 	Initial Payment:

	 	5.2.1	 	Level Up! shall pay to Gravity a sum of Two Hundred Forty Thousand United
States Dollars (USD 240,000.00) (“Initial Payment”) upon the below schedule.

	 	5.2.1.1.	 	within seven (7) days from the execution date of this agreement and once
Level Up! receives any and all necessary approval from any governmental body,
including but not limited to the Brazilian Central Bank: Eighty Thousand US
Dollars (USD80,000.00).
	 
	 	5.2.1.2	 	within seven (7) days after starting the open beta test Game and once
Level Up! receives any and all necessary approval from any governmental body,
including but not limited to the Brazilian Central Bank:: Eighty Thousand US
Dollars (USD80,000.00).
	 
	 	5.2.1.3	 	within seven (7) days after starting the released Game and once Level Up!
receives any and all necessary approval from any governmental body, including
but not limited to the Brazilian Central Bank:: Eighty Thousand US Dollars
(USD80,000.00).

	 	5.2.2	 	The Initial Payment, whether in part or in whole, shall not be refunded to
or recouped by Level Up!, except for cases where the Game does not function properly
due to inherent defects or bugs therein, which are not remedied by Gravity within
eighty (80) days from the date when the Game is installed in the Level Up!’s hardware.
Such refund accorded to Level Up! shall be fifty (50) percent of the Initial Payment
less the cost incurred by Gravity in localizing the Game in the Territory.
	 
	 	5.2.3	 	Gravity hereby expressly agrees that Level Up! Inc., a corporation duly
organized and existing under the laws of the Republic of the Philippines, and having
its offices at 8th floor Pacific Star Building, Makati City, Philippines
(“Controller of Level Up!”), has also made a payment on behalf of the Level
Up! in the amount of Ten Thousand US Dollars (USD10,000.00), which is also part of the
Initial Payment.

	 	5.2.3.1	 	Controller of Level Up! and Level Up! shall take the proper measures under
Brazilian law regarding the payment made by the Controller of Level Up! on
behalf of the Level Up!, as per Section 5.2.3, above.

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	5.3	 	Copyright Fee and Report:

	 	5.3.1	 	In addition to the Initial Payment, Level Up! shall pay to Gravity as
continuing copyrights fee, twenty five percent (25%) of the Service-Sales Amount paid
by End Users (“Copyright”). Subject to Section 5.4 below, the Copyright shall
be paid on a monthly basis within twenty (20) days after the end of the applicable
month. Payment shall be deemed made upon presentation of Level Up! whether in fax or
any other means the remittance confirmation or notice to Gravity. In any case, unless
Gravity actually receives the remitted amount, the payment shall not be deemed to be
paid. Level Up! shall also provide Gravity with a report (“Copyright Fee
Report”) on a monthly basis within twenty (20) days after the end of the
applicable month. Each Copyright Fee Report shall contain detailed information on the
calculation of Service-Sales Amount for the applicable month.

	 	5.3.1.1	 	For the first month after the starting of the commercial service Level Up!
shall be allowed to pay the Copyright due within sixty (60) days after the
end of the applicable month.

	5.4	 	Any and all payments under this Agreement by Level Up! to Gravity shall be made in Brazilian
Reais (R$) and converted into United States Dollar (USD) as foreseen in Section 5.5, below,
and by wire transfer to the account designated by Gravity or in such other method as may be
mutually agreed between the Parties.
	 
	5.5	 	For all payments to be made in United States Dollar under this Agreement, the applicable
foreign exchange rate shall be the foreign exchange sale rate verified at the closing of the
day prior to the date on which the payment is to be made, such exchange rate announced by the
Central Bank of Brazil and obtained through transaction PTAX800 of the “Sistema de Informações
Eletrônicas do Banco Central do Brasil/SISBACEN” (The Central Bank of Brazil’s Electronic
Information System), provided, however, that in the event of any delay in payment, the most
favourable exchange rate to Gravity among the
rates during the period from the due date for the relevant payment to the date of actual
payment shall apply.

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	5.6	 	In the event any payment is delayed by Level Up! under this Agreement, a default interest at
a rate of twelve (12)% per annum (“Default Interest”) shall apply. For the avoidance
of doubt, Gravity’s entitlement to such Default Interest pursuant to this Section 5.6 shall
not affect any of the other rights of Gravity under this Agreement.
	 
	5.7	 	Level Up! shall pay the Copyrights in strict compliance with the due date set forth in
Section 5.3.1 above.
	 
	5.8	 	Any and all taxes including the sales tax, value added tax, income tax on any payment to
Gravity under this Agreement shall be borne by Level Up!, provided, however, if any government
in the Territory requires Level Up! to withhold the income or other tax on the payment to
Gravity, Level Up! is allowed to withhold such tax up to twenty five percent (25%) from such
payments only if Gravity is entitled to receive such payments as a tax credit under the
relevant laws of Korea or any existing tax treaty between the respective countries of
operation of Gravity and Level Up!. In the event that any amount is withheld for the tax
payment under this Section 5.8, Level Up! shall promptly inform Gravity of such payment and
provide Gravity with a certification issued by the relevant tax authorities with respect to
the relevant payment.

	 	5.8.1.	 	Any withholding tax in excess of the limit foresee on Section 5.8 above shall be
borne by Level Up!, and Level Up! shall not deduct such withheld amount from the
actual payment amount.

Article 6

Report & Audit

	6.1	 	Level Up! shall provide Gravity with all the information on the development of its business
in relation to the Game. Without limiting the generality of the foregoing, Level Up! shall
inform Gravity promptly in the event of its launch of the beta service or the commercial
service of the Game.
	 
	6.2	 	Level Up! shall provide Gravity with a monthly report (the “Monthly Report”) within
twenty (20) days after the end of the applicable month in writing on its business activities
in relation to the Game, including, but not limited to, the list of End-Users, the fees
charged by Level Up!, the total Service-Sales Amounts for the pertinent month, advertising
activities and the expenses therefore, complaints received from End Users and market
trends in the Territory.

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	6.3	 	Level Up! shall keep all of its records, contractual and accounting documents and company
documents in relation to its business and activities under this Agreement in its offices,
during the term of this Agreement and for two (2) years after the expiration or termination of
this Agreement.
	 
	6.4	 	During the term of this Agreement and two (2) years after the expiration or termination
thereof, Gravity may by itself or through an accountant designated by Gravity investigate and
audit the accounting documents of Level Up! with respect to its Game business. For this
purpose, Gravity may request Level Up! to produce the relevant documents, and may visit Level
Up!’s office and make copies of Level Up!’s documents. Level Up! shall provide all assistance
and co-operation required by Gravity for such investigation and audit. All expenses incurred
for such investigation and audit shall be borne by Gravity unless such investigation and audit
reveals underpayment by greater than five percent (5%) of the annual Copyright amount, in
which case Level Up! shall bear all expenses for such investigation and audit and shall also
promptly pay to Gravity the unpaid amount together with a per annum default interest thereon
equivalent to twelve (12%) percent thereof. In the event of Level Up!’s understatement of the
Copyright amount without any justifiable reasons, Gravity shall be entitled to terminate this
Agreement pursuant to Section 13.3(b) below.

Article 7

Advertising & Promotion

	7.1	 	Level Up! shall exert its best efforts to advertise, promote and perform marketing activities
for the Game in the Territory.
	 
	7.2	 	For the marketing of the Game in the Territory, Level Up! agrees to spend no less than One
Hundred and Fifty Thousand United States Dollars (USD150,000.00) for each twelve-month period
after the commencement of the term of this Agreement. Such amount shall include funds spent
directly by Level Up! or by third parties with which Level Up! has marketing or distribution
agreements. Level Up! shall provide Gravity with detailed information on Level Up!’s
advertising activities every month in the Monthly Reports as stipulated in Section 6.2. In
addition, Level Up! shall provide Gravity with a separate advertisement report on June 30 and
December 31 of each year covering the preceding six (6) months’ period.

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	7.3	 	Gravity will provide Level Up! with samples of the marketing and promotional materials for
the Game that have been or will be produced and used by Gravity during the term of this
Agreement. Level Up! shall pattern all its advertising, marketing and promotional materials
for the Game in the Territory after the samples furnished to Level Up! by Gravity, and Level
Up! shall provide Gravity with samples of the advertising, marketing and promotional materials
for the Game produced by Level Up! no later than seven (7) days after launching them. Within
seven (7) days from receipt by Gravity of samples of Level Up!’s advertising, marketing and
promotional materials, Gravity shall notify Level Up! in writing of Gravity’s approval or
disapproval thereof, or of any changes that Gravity may require Level Up! to make thereto.
Gravity’s failure to respond within the said period of seven (7) days after receipt of such
samples of advertising material shall be deemed as approval of such advertising materials.
	 
	7.4	 	The ownership of and the copyright in the marketing and advertising materials produced or
used by Level Up! on the Game (“Advertising Materials”) shall remain exclusively with Gravity,
and Level Up! shall not use the Advertising Materials for any purpose other than the
promotion, marketing and advertising of the Game permitted under this Agreement.
	 
	7.5	 	Level Up! may provide End Users with such number of free points and free accounts as may be
reasonably necessary, in Level Up!’s opinion, for the purposes of the promotion, operation and
advertisement of the Game only with prior written approval from Gravity. The detailed
information on the free points and accounts provided by Level Up! to End Users shall be
provided to Gravity on a monthly basis in the Monthly Report as stipulated in Section 6.2.
Gravity’s approval shall not be unreasonably withheld.

Article 8

Other Obligations of Level Up!

	8.1	 	Level Up! shall exert its best efforts to supply, distribute and sell the Game in the
Territory.
	 
	8.2	 	Level Up! shall be solely responsible for service, use, promotion, distribution and marketing
of the Game in the Territory, and Gravity shall not be responsible for or obligated to provide
any of such activities unless stipulated otherwise in this Agreement.

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	8.3	 	Level Up! shall provide full and comprehensive technical support to End Users to assist them
in their use of the Game, including but not limited to Level Up!’s maintaining 24-hour
technical contact window, on-line customer services, sufficient outbound bandwidth and
circuits for operating business under this Agreement, and game servers required for on-line
game operation.
	 
	8.4	 	Level Up! shall provide its best efforts to protect the Intellectual Property rights of
Gravity and shall assist Gravity to procure appropriate legal and administrative measures
against any and all activities by third parties infringing the Game or any of the Intellectual
Property rights of Gravity on or in relation to the Game, including without limitation to,
manufacture or sales of counterfeiting CDs, manuals, workbooks or other products. Any and all
expenses incurred by Level Up! in activities described in this section 8.4 shall be for the
account of the Gravity and the Gravity shall reimburse Level Up! within seven working days
upon presentment of requests for reimbursement.
	 
	8.5	 	Level Up! shall abide by all laws and regulations of the Territory in its service, use,
promotion, distribution and marketing of the Game in the Territory.
	 
	8.6	 	Level Up! shall provide a prior written notice to Gravity in the event Level Up! intends to
change its marketing strategies, including budget, advertising, marketing, promotional
materials, product packaging and price policies relating to the Game, and other important
policies.
	 
	8.7	 	Level Up! shall indemnify and hold harmless Gravity and its officers and employees from any
kind of losses, costs, expenses or liabilities, including reasonable attorneys’ fees resulting
from any claim by a third party on or in relation to Level Up!’s service, use, promotion,
distribution and marketing of the Game in the Territory.
	 
	8.8	 	Upon prior arrangement of the Parties, Level Up! shall provide Gravity with suitable office
space and office supplies in Level Up!’s office for the auditing activities of Gravity. Access
to such office space shall be limited only to persons designated by Gravity. All expenses
incurred by Gravity’s employees dispatched to Level Up!’s offices for transportation, postage,
telecommunications, lodging, food and other general living expenses, and the salaries for such
employees during their stay at such offices shall be borne and paid by Gravity.

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Article 9

Technical Information and Intellectual Property

	9.1	 	Technical Information and Intellectual Property shall be exclusively owned by Gravity, and
this Agreement shall not grant Level Up! or permit Level Up! to exercise any right or license
in or to the Technical Information and Intellectual Property except for the Authorization
granted under this Agreement. Level Up! shall not obtain or try to obtain any registered
industrial property or copyright in or over any of the Technical Information and Intellectual
Property of Gravity regardless of the territory and exploitation area.
	 
	9.2	 	Gravity hereby represents and warrants that Gravity is the legal owner of the Technical
Information and Intellectual Property; that it has a legal and valid right to grant the rights
and Authorization under this Agreement to Level Up!, and that the Game and Technical
Information do not violate or infringe any patent, copyright and trademark of any third party
in Korea. Gravity shall take all reasonable action, legal or otherwise, under the
circumstances to prevent and/or halt any threatened or actual infringement or violation of
Intellectual Property rights by third parties in the Territory, or to address and answer any
third party claims or demands in respect of the Intellectual Property rights, so as to ensure
that Level Up! may continue to service, market, distribute and use the Game in the Territory
in the manner contemplated under this Agreement.
	 
	9.3	 	Gravity further guarantees and warrants to Level Up! that the Game and the corresponding
Technical Information and accompanying Intellectual Property:

	 	9.3.1	 	do not violate any Intellectual Property rights of any third party or any
rights of publicity or privacy in Korea;
	 
	 	9.3.2	 	do not violate any law, statute, ordinance or regulation (including without
limitation the laws and regulations governing export control, unfair competition,
anti-discrimination or false advertising) of Korea or any other country; and
	 
	 	9.3.3	 	do not contain any obscene, child pornographic or indecent contents.

	9.4	 	Gravity agrees to indemnify and hold harmless Level Up! from any kind of losses, costs,
expenses or liabilities, including reasonable attorneys’ fees and costs of settlement,
resulting from the breach by Gravity of its express warranties given herein provided that
Level Up!
(a) promptly notifies Gravity of such claim; (b) allows Gravity to control the defense of
such claim and/or any related settlement negotiations; and (c) provides any reasonable
assistance requested by Gravity in connection with such claim.

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	9.5	 	It is understood that by the grant of the Authorization to Level Up!, Gravity undertakes to
accord to Level Up! all rights and privileges normally accorded and granted by Gravity to all
other entities to which a similar authorization for the Game has or will be granted by
Gravity. Gravity warrants there is no outstanding contract, commitment or agreement to which
it is a party, or legal impediment, prohibition or restriction of any kind known to Gravity,
which conflicts with this Agreement or might limit, restrict or impair the rights granted to
Level Up! hereunder.

Article 10

Limitation of Liability

	10.1	 	Except as may be otherwise provided for herein, Gravity makes no warranties, express or
implied, concerning the Game including but not limited to its merchantability or salability in
the Territory.
	 
	10.2	 	In no event will either party be liable to the other for any indirect, consequential,
incidental, punitive or special damages, whether based on breach of contract, tort (including
negligence) or otherwise, and whether or not such party has been advised of the possibility of
such damage.
	 
	10.3	 	The aggregate liability of either Party under or relating to this Agreement whether in
contract, tort (including without limitation negligence) or otherwise, shall be limited to an
amount equal to the total amount of the payments made by Level Up! during the preceding period
of six (6) months.

Article 11

Confidentiality

	11.1	 	All Confidential Information disclosed by either Party under this Agreement shall be
maintained in confidence by the receiving Party and shall not be used for any purpose other
than explicitly granted under this Agreement. Each Party agrees that it shall provide
Confidential Information received from the other Party only to its employees, consultants and
advisors who need to know for the performance of this Agreement. The receiving Party shall be
responsible for any breach of this Article by its employees, consultants and advisors.

15

 

	11.2	 	In the event that any Confidential Information, including but not limited to the source codes
of the Game, Technical Information and financial information, is disclosed or divulged to any
third party who is not authorized to have access to or obtain such Confidential Information
under this Agreement, the Parties shall cooperate with each other and exert their best efforts
to protect or restore such Confidential Information from such unauthorized disclosure or
divulgement. If such disclosure or divulgement of the Confidential Information was made due to
the receiving Party’s gross negligence or bad faith, the receiving Party shall be responsible
for all of the damages incurred by the disclosing Party, including but not limited to any
attorneys’ fees incurred by the disclosing Party in order to protect its rights under this
Article 11.

	11.3	 	The confidential obligation shall not apply, in the event that it can be shown by competent
documents that the Confidential Information:

	 	11.3.1	 	becomes published or generally known to the public before or after the execution of
this Agreement without any breach of this Agreement by any Party;
	 
	 	11.3.2.	 	was known by the receiving Party prior to the date of disclosure to the receiving
Party;
	 
	 	11.3.3.	 	Either before or after the date of disclosure is lawfully disclosed to the
receiving Party by a third party who is not under any confidentiality obligation to
the disclosing Party for such information;
	 
	 	11.3.4.	 	is independently developed by or for the receiving Party without reference to or
reliance upon the Confidential Information; or
	 
	 	11.3.5.	 	is required to be disclosed by the receiving Party in accordance with the
applicable laws and orders from the government or court; provided that, in this case,
the receiving Party shall provide prior written notice of such disclosure to the
providing Party and takes reasonable and lawful actions to avoid and/or minimize the
degree of such disclosure.

16

 

Article 12

Term

	12.1	 	This Agreement shall become effective on the execution date of this Agreement and shall
remain in effect for a period of two (2) years
counted from the Commercial Service Date, unless sooner terminated in accordance herewith.
	 
	12.2	 	Provided that Level Up! is in due performance of this Agreement, Level Up! shall have an
option to renew the term of this Agreement for an additional term of one (1) year (“Renewed
Term”) under the same terms and conditions hereof. At the expiration of the Renewed Term,
Level Up! shall also have the further option to extend the term of this Agreement on an
on-going, yearly basis for an additional term of one (1) year (the “Extended Term”) under the
same terms and conditions provided for herein. Level Up! shall exercise the aforesaid options
to renew at least six (6) months prior to the expiration of the original term of this
Agreement or the Renewed Term, as the case may be.

Article 13

Termination

	13.1	 	This Agreement may be terminated upon the mutual agreement of the Parties.

	13.2	 	Each Party shall have the right to immediately terminate this Agreement:

	 	13.2.1	 	upon written notice to the other Party in the event of the other Party’s material
breach of this Agreement and such breach shall continue for a period of thirty (30)
days after the breaching Party’s receipt of written notice setting forth the nature of
the breach or its failure to perform and the manner in which it may be remedied;
	 
	 	13.2.2	 	if the other Party or its creditors or any other eligible party files for its
liquidation, bankruptcy, reorganization, composition or dissolution, or if the other
Party is unable to pay any kind of debts as they become due, or the creditors of the
other Party have taken over its management; or
	 
	 	13.2.3	 	in accordance with Section 13.3 below.

	13.3	 	Notwithstanding Section 13.2 above, Gravity may immediately terminate this Agreement upon a
written notice to Level Up!:

	 	13.3.1	 	if the Copyright for any given month as set forth in Section 5.1(b) above is not
paid by Level Up! within twenty (20) days after receiving written notice from Gravity
for late payment;

17

 

	 	13.3.2	 	in the event of a willful, gross understatement by Level Up! of the Copyright
payments due Gravity without any justifiable reasons, as defined in Section 6.4 above;
	 
	 	13.3.3	 	if the beta service of the Game is not launched in the Territory within the period
set forth in Section 3.2, unless such failure has been caused by Gravity or is due to
force majeure event as set forth in Article 14;
	 
	 	13.3.4	 	if the commercial service of the Game is not launched in the Territory within the
period set forth in Section 3.2, unless such failure has been caused by Gravity or is
due to force majeure event as set forth in Article 14; or
	 
	 	13.3.5	 	if the service of the Game in the Territory is stopped, suspended, discontinued or
disrupted for more than fifteen (15) consecutive days during the term of this
Agreement due to causes attributable to Level Up!.

	13.4	 	Upon the effective date of such termination, all rights granted to Level Up! hereunder shall
immediately cease and shall revert to Gravity, and Level Up! shall immediately cease servicing
of the Game and return to Gravity any and all software, technical documents and other
materials or information provided by Gravity to Level Up! under this Agreement, and shall
destroy any and all copies of such software, technical documents, materials or information.
Furthermore, Level Up! shall provide and deliver to Gravity any and all such information and
documents related to the Game, including but not limited to database related to the Game and
information and/or data source about the Game users, as may be requested by Level Up!.
	 
	13.5	 	No termination of this Agreement shall affect the Parties’ rights or obligations that were
incurred prior to the termination. The expiration or termination of this Agreement shall not
affect the effectiveness of Articles 6, 9, 10, 11, and 13.4, which shall survive the
expiration or termination of this Agreement.

18

 

Article 14

Force Majeure

	14.1	 	Notwithstanding anything in this Agreement to the contrary, no default, delay or failure to
perform on the part of either Party shall be considered a breach of this Agreement if such
default, delay or failure to perform is shown to be due entirely to causes occurring without
the fault of or beyond the reasonable control of the Party charged with such default, delay or
failure, including, without limitation, causes such as strikes, lockouts or other labour
disputes, riots, civil disturbances, actions or inactions of governmental authorities or
suppliers, electrical power supply outage, a failure or breakdown in the services of
internet service providers, epidemics, war, embargoes, severe weather, fire, earthquake and
other natural calamities or, acts of God or the public enemy. Force majeure shall include
actions taken by the Brazilian government or agencies thereof, which restrict the ability
of Level Up! to remit payments to Gravity under this agreement, or failure of the Brazilian
government or agencies thereof to approve such payments.
	 
	14.2	 	If the default, delay or failure to perform as set forth above in Section 14.1 exceeds one
hundred eighty (180) days from the initial occurrence, a Party who is not affected by such
force majeure event shall have the right to terminate this Agreement with a written notice to
the other Party.

Article 15

General Provisions

	15.1	 	Level Up! may not assign, delegate or otherwise transfer in any manner any of its rights,
obligations and responsibilities under this Agreement, without prior written consent of
Gravity. Such prior written consent of Gravity, however, shall not be necessary if the
assignment or transfer is made to a corporation or other entity in which Level Up! holds at
least 51% of the stockholders equity or has management control (defined as the right to
appoint the chief executive officer of the corporation).
	 
	15.1.2	 	If the Level Up! assigns this Agreement without the prior written consent of the Gravity,
the Level Up! shall continue to be liable for the performance by the Assignee of its
obligations to Gravity under this Agreement.
	 
	15.1.3	 	Gravity may, with prior written notice to Level Up!, assign, delegate or otherwise transfer
all or any part of its rights, obligations and responsibilities under this Agreement to a
third party designated by Gravity, provided that such third-party transferee shall execute an
undertaking in favour of Level Up! to respect this Agreement in its entirety.
	 
	15.2	 	It is understood and agreed by the Parties that this Agreement does not create a fiduciary
relationship between them, that Level Up! shall be an independent contractor, and that nothing
in this Agreement is intended to constitute either Party an agent, legal representative,
subsidiary, joint venture, employee or servant of the other for any purpose whatsoever.

19

 

	15.3	 	If any kind of notices, consents, approvals, or waivers are to be given hereunder, such
notices, consents, approvals or waivers shall be in writing, shall be properly addressed to
the Party to whom such notice, consent, approval or waiver is directed, and shall be either
hand delivered to such Party or sent by certified mail, return receipt requested, or sent by
FedEx, DHL or comparable international courier service, or by telephone, facsimile or
electronic mail (in either case with written confirmation in any of the other accepted forms
of notice) to the following addresses or such addresses as may be furnished by the respective

Parties from time to time:

	 	 	 
	 

	 	If to Gravity.
	 

	 	Attention: Mr. Andrew Sohn
	 

	 	4th Fl. Shingu Bldg., 620-2, Shinsa-Dong, Kangnam-Ku,
	 

	 	Seoul, 135894, KoreaFax: +82-2-3442-7097
	 
	 	 
	 

	 	If to Level Up!
	 

	 	Attention: Ms. Paula Secaf Adde
	 

	 	Rua Geraldo Flausino Gomes, no 78, 11o floor, cj. 113
	 

	 	and 114
	 

	 	Brooklin – São Paulo – SP — CEP 04575-060
	 

	 	Phone: 5511.5105-5822
	 

	 	Fax: 5511.51055835

	15.4	 	No course of dealing or delay by a Party in exercising any right, power, or remedy under this
Agreement shall operate as a waiver of any such right, power or remedy except as expressly
manifested in writing by the Party waiving such right, power or remedy, nor shall the waiver
by a Party of any breach by the other Party of any covenant, agreement or provision contained
in this Agreement be construed as a waiver of the covenant, agreement or provision itself or
any subsequent breach by the other Party of that or any other covenant, agreement or provision
contained in this Agreement.
	 
	15.5	 	This Agreement, including all exhibits, addenda and schedules referenced herein and attached
hereto, constitutes the entire agreement between the Parties hereto pertaining to the subject
matter hereof, and supersedes all negotiations, preliminary agreements, and all prior and
contemporaneous discussions and understandings of the Parties in connection with the subject
matter hereof.
	 
	15.6	 	This Agreement shall be written in English and all disputes on the meaning of this Agreement
shall be resolved in accordance with English version of this Agreement.

20

 

	15.7	 	This Agreement may be amended only upon the execution of a written agreement between Gravity
and Level Up! that makes specific reference to this Agreement.
	 
	15.8	 	This Agreement shall be governed by and construed in accordance with the laws of Korea.
	 
	15.9	 	Any controversy or claim arising out of or in relation to this Agreement shall be finally
settled through the proper courts in Korea.
	 
	15.10	 	If any section, subsection or other provision of this Agreement or the application of such
section, subsection or provision, is held invalid, then the remainder of the Agreement, and
the application of such section, subsection or provision to persons or circumstances other
than those with respect to which it is held invalid shall not be affected thereby.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorised
officers, in any number of counterparts (whether by facsimile or otherwise, but, if by facsimile,
with the original signed signature pages being promptly sent to the other Party by first-class
prepaid letter (and each Party is hereby authorised to incorporate such pages into bound
originals)) of identical content and form, all of them for a single purpose in the presence of the
2 (two) witnesses below, as of the day and year first above written.

21

 

Page of signatures of a certain Exclusive Ragnarok Authorization To

Use And Distribute Software Agreement dated August 15th , 2004

	 	 	 	 	 	 	 
	 
	 

	 	 	 	/s/ Jung Ryool Kim	 	 
	 	 	 
	 	 
	 

	 	 	 	       Gravity Corporation	 	 
	 	 	By: Jung-Ryool Kim

Title: Chairman	 	 
	 
	 	 	 	 	 	 
	 
	 

	 	 	 	/s/ Paula Secaf Adde	 	 
	 	 	 
	 	 
	 

	 	 	 	Level Up! Interactive S.A.	 	 
	 	 	By: Paula Secaf Adde

Title: Financial Director	 	 
	 
	 	 	 	 	 	 
	 
	 

	 	 	 	/s/ Richard Mingorance	 	 
	 	 	 
	 	 
	 

	 	 	 	Level Up! Interactive S.A.	 	 
	 	 	By: Richard Mingorance

Title: Superintendent Director	 	 

Witnesses:

	 	 	 	 	 
	    

By:

	 	    

By:
	 	 
	ID:

	 	ID:	 	 

22<PAGE>

                                                                     EXHIBIT 4.4

                                                                 [LINKTONE LOGO]

================================================================================

                              EMPLOYMENT AGREEMENT

                                      Among

                                RAYMOND YANG LEI

                                       And

                                  LINKTONE LTD.

                           Dated as of October 1, 2004

================================================================================

<PAGE>

                     THIS EMPLOYMENT AGREEMENT ("Agreement")
                          is made and entered into this

                            1st day of October, 2004
                             (the "Effective Date")

                                 by and between

                                Raymond Lei Yang
                                (the "Employee")

                                       and

                          LINKTONE LTD. (THE "COMPANY")

BACKGROUND

WHEREAS the Employee and the Company (a Cayman Islands company) have previously
entered into an Employment Agreement dated April 1, 2003 (the "Original
Employment Agreement") pursuant to which the Employee has been employed by the
Company.

WHEREAS the Employee and the Company desire to enter into this Agreement to
supercede, restate and amend in its entirety the Original Employment Agreement
on the terms set forth herein for the purpose of retaining the services of the
Employee, and to provide the Employee with an inducement to remain with the
Company.

NOW, THEREFORE, intending to be legally bound, and in consideration of the
premises and the mutual promises set forth in this Agreement and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and Employee agree as follows:

DEFINITIONS

"Administrator" means the Compensation Committee (as defined below) or the Board
(as defined below) who administer the Employee Stock Options (as defined below)
under applicable stock option agreements or stock incentive plans or schemes.

"Affiliate" means with respect to any Person directly or indirectly Controlling,
Controlled by, or under common Control with such Person.

"Ancillary Agreements" is as defined in Article 5.

"Board" means the Board of Directors of the Company.

"Cash Compensation" is as defined in Section 2.1.

Confidential            Copyright (C) 2004 Linktone Ltd.            Page 2 of 26

<PAGE>

"Cause" means (i) the Employee commits a crime involving dishonesty, breach of
trust, or physical harm to any person; (ii) the Employee willfully engages in
conduct that is in bad faith and materially injurious to the Company, including
but not limited to, misappropriation of trade secrets, fraud or embezzlement;
(iii) the Employee commits a material breach of this Agreement or the Ancillary
Agreements, which breach is not cured within twenty (20) days after written
notice to the Employee from the Company; (iv) the Employee willfully refuses to
implement or follow a reasonable and lawful policy or directive of the Company,
which breach is not cured within twenty (20) days after written notice to the
Employee from the Company; or (v) the Employee engages in malfeasance
demonstrated by a pattern of failure to perform job duties diligently and
professionally.

"Change in Control" means a change in ownership or control of the Company
effected through either of the following transactions: (i) the direct or
indirect acquisition by any person or related group of persons (other than an
acquisition from or by the Company or by a Company-sponsored employee benefit
plan or by a person that directly or indirectly controls, is controlled by, or
is under common control with, the Company) of beneficial ownership (within the
meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company's
outstanding securities pursuant to a tender or exchange offer made directly to
the Company's shareholders which a majority of the Continuing Directors who are
not Affiliates or Associates of the offeror do not recommend such shareholders
accept, or (ii) a change in the composition of the Board over a period of
thirty-six (36) months or less such that a majority of the Board members
(rounded up to the next whole number) ceases, by reason of one or more contested
elections for Board membership, to be comprised of individuals who are
Continuing Directors. The "Continuing Directors" means members of the Board who
either (i) have been Board members continuously for a period of at least
thirty-six (36) months or (ii) have been Board members for less than thirty-six
(36) months and were elected or nominated for election as Board members by at
least a majority of the Board members described in clause (i) who were still in
office at the time such election or nomination was approved by the Board.
"Associate" has the meaning ascribed to such term in Rule 12b(2) promulgated
under the Exchange Act.

"Company" is as defined in the Preamble.

"Compensation Committee" means the compensation committee of the Board of the
Company or such other group of directors performing similar functions.

"Control" (including the terms "Controlled by" and "under common Control with")
means the possession, directly or indirectly or as a trustee or executor, of the
power to direct or cause the direction of the management of a Person, whether
through the ownership of stock, as a trustee or executor, by contract or credit
agreement or otherwise.

"Corporate Transaction" means any of the following transactions: (i) a merger or
consolidation in which the Company is not the surviving entity, except for a
transaction the principal purpose of which is to change the state in which the
Company is incorporated; (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Company; (iii) the complete liquidation
or dissolution of the Company; (iv) any reverse merger or series of related
transactions culminating in a reverse merger (including, but not limited to, a
tender offer followed by a reverse merger) in which the Company is the surviving
entity but (A) the Ordinary Shares outstanding immediately prior to such merger
are converted or exchanged by virtue of the merger into other property, whether
in the form of securities, cash or otherwise, or (B) in which securities
possessing more than fifty percent (50%) of the total combined voting power of
the Company's outstanding

Confidential            Copyright (C) 2004 Linktone Ltd.            Page 3 of 26

<PAGE>

securities are transferred to a person or persons different from those who held
such securities immediately prior to such merger or the initial transaction
culminating in such merger, but excluding any such transaction or series of
related transactions that the Administrator determines shall not be a Corporate
Transaction; or (v) acquisition in a single or series of related transactions by
any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the
meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company's
outstanding securities but excluding any such transaction or series of related
transactions that the Administrator determines shall not be a Corporate
Transaction.

"Effective Date" is as defined in the Preamble.

"Employee" is as defined in the Preamble.

"Employee Resignation" and "Employee Resignation Date" are defined in Section
3.1.2.

"Employee Stock Options" shall be the right given by the Company to the Employee
on specific vesting dates during the Employment Term to purchase a specific
number of Ordinary Shares or other securities of the Company at a specific
exercise price, as set forth in Section 2.6, with more detailed terms and
conditions provided in the relevant employee stock option plan or scheme or
stock option award agreements thereunder.

"Employment Capacity" shall be Chief Executive Officer reporting to the Board of
the Company.

"Employment Contract Termination Date" means the later of April 1, 2006 or the
date on which either the Company or the Employee elects not to extend this
Agreement further by giving written notice to the other party.

"Employment Final Termination Date" means the date upon which the Employee's
employment with the Company ceases for any reason.

"Employment Term" is as defined in Section 1.1.

"Exchange Act" means the U.S. Securities Exchange Act of 1934, as amended.

"Good Reason" in the context of the Employee's resignation is defined as (a) a
change in the Employee's position which materially reduces the Employee's level
of responsibilities, duties or stature; (b) a reduction in the Employee's
Monthly Base Salary or (c) a relocation of the Employee's principal place of
employment by more than 50 miles.

"Monthly Base Salary" is as defined in Section 2.1 (i).

"Ordinary Shares" means the ordinary shares of the Company.

"Original Employment Agreement" is as defined in the Preamble.

"Performance Targets" shall be as defined in Section 2.1.

"Person" means an individual, corporation, partnership, limited liability
company, limited partnership, association, trust, unincorporated organization or
other entity or group (as defined in

Confidential            Copyright (C) 2004 Linktone Ltd.            Page 4 of 26

<PAGE>

Section 13(d)(3) and Section 14(d)(2) of the Exchange Act).

"RMB" or Renminbi means the legal currency of the People's Republic of China.

"Subsidiary" means, with respect to any Person, any entity which securities or
other ownership interests having ordinary voting power to elect a majority of
the Board or other persons performing similar functions are at the time directly
or indirectly owned by such Person.

"U.S. dollars" or "US$" means the legal currency of the United States.

ARTICLE 1. EMPLOYMENT AND TERM

      The Company hereby employs the Employee and the Employee hereby agrees to
such employment by the Company during the Employment Term to serve as the Chief
Executive Officer and member of the Board of the Company, with the customary
duties, authorities and responsibilities of such position and such other duties,
authorities and responsibilities relative to the Company that may from time to
time be delegated to the Employee by the officers of the Company. The Employee
shall perform such duties and responsibilities as are normally related to such
position in accordance with the standards of the industry and any additional
duties now or hereafter assigned to the Employee by the Company. The Employee
shall abide by the Company's rules, regulations and practices as they may from
time-to-time be adopted or modified.

1.1   EMPLOYMENT TERM. The Employment Term of this Agreement shall commence on
      the Effective Date and shall continue until the earlier of the Employment
      Contract Termination Date or the Employment Final Termination Date.

1.2   FULL WORKING TIME. During the Employment Term, the Employee shall devote
      all of his attention, experience and efforts during normal business hours
      to the proper performance of his duties hereunder and to the business and
      affairs of the Company.

1.3   CHANGE IN CONTROL/CORPORATE TRANSACTION. Notwithstanding the foregoing, if
      a Change in Control or Corporate Transaction occurs prior to the
      Employment Contract Termination Date, then the terms outlined in Article 4
      shall apply.

ARTICLE 2. COMPENSATION PACKAGE AMOUNT

2.1   CASH COMPENSATION. During the Employment Term, as compensation for
      services hereunder and subject to the performance of his obligations
      hereunder, the Employee shall be paid the cash compensation (the "Cash
      Compensation"), which consists of the following:

            i.    Base Salary: base salary in the amount of RMB 2,070,000 (which
                  is equivalent as of the date hereof to Two Hundred and Fifty
                  Thousand U.S. Dollars (US$250,000)) payable in twelve monthly
                  installments ("Monthly Base Salary") and pro rated for the
                  number of days actually worked by Employee in any month in
                  which the Employment Contract Termination Date or the
                  Employment Final Termination Date occurs;

Confidential            Copyright (C) 2004 Linktone Ltd.            Page 5 of 26

<PAGE>

            ii.   Annual Performance Incentive Cash Bonus: an annual performance
                  incentive cash bonus, payable on or before April 30 of the
                  following calendar year, subject to the Employee's achievement
                  of the annual performance targets set forth in Exhibit A
                  hereto ("Performance Targets"), such performance as verified
                  and approved by the Compensation Committee in accordance with
                  Section 2.7 and the formula set forth below, with the Target
                  Variable of RMB 828,000 (which is equivalent as of the date
                  hereof to One Hundred Thousand US Dollars (US$100,000)) for
                  the calendar year 2004:

<TABLE>
<CAPTION>
Percentage of Achievement of Performance Targets                Percentage of Target Variable Payable
------------------------------------------------                -------------------------------------
<S>                                                             <C>
   Between 80% and 100% (Exclusive)                                        50%
   100% or above                                                          100%
</TABLE>

                  The Employee is not entitled to any annual incentive cash
                  bonus mentioned above unless he has been employed by the
                  Company for the full calendar year.

            iii.  One-time bonus: a one-time bonus in the amount of RMB 579,600
                  (which is equivalent as of the date hereof to Seventy Thousand
                  US Dollars (US$70,000)) payable by the Company in lump sum to
                  Employee in the fourth quarter of 2004 or any other date as
                  determined by the Company at its discretion.

                  The Cash Compensation shall be payable in RMB. The Employee
      may elect, at his own foreign exchange risk and expense, to receive a
      percentage of such Cash Compensation in foreign currencies, under which
      circumstances the Company will pay such amount in the foreign currencies
      as designated by the Employee at the exchange rate made available to the
      Company by any financial institution selected by the Company which
      provides foreign currency exchange services for the Company.

2.2   BENEFITS. During the Employment Term, as compensation for services
      hereunder, the Employee shall be entitled to the benefits as follows:

            i.    Housing Allowance: housing allowance in the aggregate amount
                  of up to RMB 24,840 (which is equivalent to as of the date
                  hereof Three Thousand US Dollars (US$3,000)) per month.

            ii.   Insurance: health and life insurance providing international
                  standard coverage as determined by the Compensation Committee
                  after consultation with the Employee, with insurance premiums
                  per individual family member in the amount of up to RMB 41,400
                  (which is equivalent to as of the date hereof Five Thousand US
                  Dollars (US$5,000)) per year.

            iii.  Education Reimbursement: reimbursement of education cost
                  incurred for child living in China, up to RMB 124,200 (which
                  is equivalent to as of the date hereof Fifteen Thousand US
                  Dollars (US$15,000)) per child per year through secondary
                  school.

            iv.   Company Car: use of car (Buick sedan class) and driver as
                  provided by the Company.

Confidential            Copyright (C) 2004 Linktone Ltd.            Page 6 of 26

<PAGE>

            v.    Travel Allowance: business class air fare for spouse
                  accompanying Employee on one overseas business trip per year.

            vi.   Tax Advisory Services: reimbursement for actual tax advisory
                  service fees incurred, up to RMB 11,600 (which is equivalent
                  to as of the date hereof One Thousand Four Hundred US Dollars
                  (US$1,400)) per year.

                  All reimbursements will be paid subject to Employee's delivery
                  of actual expense receipts/invoices documenting the relevant
                  reimbursement requested.

2.3   INDIVIDUAL INCOME TAX. The Employee shall be responsible for paying his
      own individual income tax in respect of the compensation received
      hereunder, and Employee will certify in writing annually to the Board that
      he has accurately reported and timely paid all income tax due in
      connection with such compensation. The Company will make all required tax
      and statutory withholdings according to the PRC taxation laws and the tax
      amount will be deducted from the Employee's Monthly Base Salary, which
      deduction Employee hereby consents to.

2.4   ANNUAL LEAVE. The Employee shall be entitled to four weeks of annual leave
      with pay during each calendar year of the Employment Term, which must be
      taken in accordance with the Company's vacation policy then in effect.

2.5   TRAVEL EXPENSES REIMBURSEMENT. The Company shall pay or reimburse the
      Employee for reasonable business expenses actually incurred or paid by the
      Employee during the Employment Term, in the performance of his services
      hereunder.

2.6   EMPLOYEE STOCK OPTION AWARDS. Before entering into this Agreement, the
      Employee has been granted the following Employee Stock Options: (1)
      LT2000-1-040103-L207 (as amended pursuant to Amendment No.1) and
      LT2000-1-040103A-L207 (as amended pursuant to Amendment No.1) and (2)
      LT2003-072104-L207, which has the terms set forth in Exhibit B which is
      attached hereto.

2.7   ANNUAL REVIEW. The terms of the compensation package provided under this
      Agreement and the Employee's recommendations in connection therewith shall
      be reviewed by the Compensation Committee and/or the Board from time to
      time. At a minimum, the Company's Compensation Committee will review in
      the second quarter of each calendar year or at such other time as the
      Company and Employee shall agree, (a) the compensation package of the
      Employee, including approval of the annual performance incentive cash
      bonus payable, if any, based on achievement of the prior calendar year's
      Performance Targets and (b) the approval of Performance Targets (with
      specific qualitative and quantitative performance factors) and Target
      Variable for determining the annual incentive bonus payouts for the
      current calendar year. Except for agreed changes, if any, pursuant to
      clause (b) of the preceding sentence, any amendment agreed upon by the
      Board or the Compensation Committee and the Employee to the terms of the
      Employee's compensation package will not be retroactive and shall take
      effect from the time such amendment is made. The parties hereto agree
      that, as a general principle, amendments to the compensation package of
      the Employee shall not be made to, directly or indirectly, address changes
      in applicable law (including tax laws) and other regulatory developments
      which affect the Employee.

ARTICLE 3. TERMINATION

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3.1   GENERAL.

      3.1.1 COMPANY'S RIGHT TO TERMINATE. The Company shall have the right to
            terminate the employment of the Employee at any time with or without
            Cause, but the relative rights and obligations of the parties in the
            event of any such termination or resignation shall be determined
            under this Agreement.

      3.1.2 EMPLOYEE'S RESIGNATION RIGHT. The Employee shall have the right to
            resign for any reason with 30 days prior notice to the Company, but
            the relative rights and obligations of the parties in the event of
            any such resignation shall be determined under this Agreement (such
            event, an "Employee Resignation", and the date of notice by the
            Employee to the Company, the "Employee Resignation Date").

3.2   TERMINATION UNDER CERTAIN CIRCUMSTANCES.

      3.2.1 TERMINATION FOR CAUSE. In the event the Company terminates the
            Employee's employment for Cause prior to the expiration of the
            Employment Term, subject to the Employee's compliance with Articles
            5, 6 and 7, the Company will be obliged to pay only the Standard
            Termination Entitlements as defined in Section 3.4.1, and the
            Employee's right to exercise the Employee Stock Options described
            under Section 2.6 shall be determined pursuant to the applicable
            stock option agreements and stock incentive plan governing such
            options.

      3.2.2 RESIGNATION FOR ANY REASON OTHER THAN GOOD REASON. In the event the
            Employee resigns for any reason other than Good Reason prior to the
            expiration of the Employment Term, subject to the Employee's
            compliance with Articles 5, 6 and 7:

       i.   the Company will be obliged to pay the Standard Termination
            Entitlements as defined in Section 3.4.1, and

       ii.  a portion of the Employee Stock Options described under Section
            2.6(1) which are unvested on such date shall vest in accordance with
            the option agreements (as amended) governing those options.

      3.2.3 TERMINATION WITHOUT CAUSE OR RESIGNATION FOR GOOD REASON. Except in
            the event of a Change in Control or a Corporate Transaction, in the
            event that the Company terminates the Employee's employment without
            Cause or the Employee resigns for Good Reason, subject to the
            Employee's compliance with Articles 5, 6 and 7:

       i.   the Company will be obligated to pay the Standard Termination
            Entitlements as defined in Section 3.4.1 and the Severance Benefits
            as defined in Section 3.4.2.; provided that Employee's eligibility
            for Severance Benefits is conditioned on Employee having first
            signed a release certificate in the form attached as Exhibit E, and

       ii.  a portion of the Employee Stock Options described under Section
            2.6(1) which are unvested on such date shall vest in accordance with
            the option agreements (as amended) governing those options.

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      3.2.4 TERMINATION UPON A CHANGE IN CONTROL. In the event of a Change in
            Control or Corporate Transaction, the terms outlined in Article 4
            shall apply.

3.3   LIQUIDATED DAMAGES. The Company and Employee hereby stipulate that the
      damages which may be incurred by the Employee as a consequence of any such
      termination of employment are not capable of accurate measurement as of
      the Effective Date and that the liquidated damages payments provided for
      in this Agreement constitute a reasonable estimate under the circumstances
      of, and are in full satisfaction of, all damages sustained as a
      consequence of any such termination of employment.

3.4   DEFINITIONS.

      3.4.1 STANDARD TERMINATION ENTITLEMENTS. For all purposes of this
            Agreement, the "Standard Termination Entitlements" shall mean and
            include:

       i.   the Employee's earned but unpaid compensation (including, without
            limitation, salary, bonus and all other items which constitute wages
            under applicable law) as of the date of his termination of
            employment. This payment shall be made at the time and in the manner
            prescribed by law applicable to the payment of compensation but in
            no event later than 30 days after the date of the Employee's
            termination of employment;

       ii.  the benefits, if any, due to the Employee (and the Employee's
            estate, surviving dependents or his designated beneficiaries) under
            the employee benefit plans and programs and compensation plans and
            programs (including stock option plans) maintained for the benefit
            of the employees of the Company; and

       iii. all of the Employee's Employee Stock Options that have been deemed
            to have vested at or prior to the Employment Final Termination Date
            under the terms of applicable stock option agreements and stock
            incentive plans.

      3.4.2 SEVERANCE BENEFITS. For all purposes of this Agreement, the
            Employee's "Severance Benefits" shall mean:

       i.   the payment of a lump sum amount equal to (i) six (6) plus the total
            number of years between April 1, 2003 (the "Date of Hire") and the
            Employment Final Termination Date, multiplied by (ii) the Employee's
            Monthly Base Salary in effect immediately prior to his termination
            of employment; if the Employment Final Termination Date occurs six
            months or more after an anniversary of the Date of Hire, such
            half-year period after the anniversary shall be included in the
            number of years referenced above (e.g., if the Employment Final
            Termination Date is two years and ten months after the Date of Hire,
            then the total number which the Employee's Monthly Base Salary would
            be mutliplied by for purposes of this subsection would be 5.5); and

       ii.  for a period of six months after the Employee's termination of
            employment, direct payment by the Company to the carrier of the
            premiums due for any health insurance continuation coverage elected
            by the Employee under the Company group health plans pursuant to the
            Consolidated Budget Reconciliation of 1985.

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ARTICLE 4. CHANGE IN CONTROL/CORPORATE TRANSACTION.

4.1   EMPLOYMENT TERM. If a Change in Control or Corporate Transaction occurs
      prior to the Employment Contract Termination Date, then the Employment
      Term shall remain unchanged.

4.2   SEVERANCE PAYMENT AMOUNT. If a Change in Control or Corporate Transaction
      occurs prior to the Employment Contract Termination Date and the Company
      terminates the Employee's employment without Cause or the Employee resigns
      for Good Reason, then the Employee will be entitled to (a) a payment equal
      to the greater of (x) 6 times the Monthly Rate of Compensation or (y) 12
      months' Monthly Base Salary less any compensation paid to the Employee
      during the period between the Change in Control or Corporate Transaction
      and Employment Final Termination Date, and (b) subject to the Employee's
      compliance with Articles 5, 6 and 7, the Standard Termination Entitlements
      as defined in Section 3.4.1.

4.3   HEALTH AND LIFE INSURANCE BENEFITS. If a Change in Control or Corporate
      Transaction occurs prior to the Employment Contract Termination Date, then
      the Employee will be entitled to Company-paid contributions for health and
      life insurance premiums for the greater of six months or the number of
      months between the Employment Final Termination Date and the first
      anniversary of the Change in Control or Corporate Transaction.

4.4   SECTION 280G. In order to avoid the payment of excise tax imposed by
      Section 4999 of the Internal Revenue Code of 1986 (the "Code"), the
      Company may reduce the payments or benefits to the Employee (within the
      meaning of Section 280G(b)(2) of the Code). Such reduction may apply to
      cash payments, vesting acceleration of Employee Stock Options and other
      benefits received by the Employee, which could result in the acceleration
      of vesting of only a portion or none of then unvested Employee Stock
      Options. In no event shall any payment be made under this Agreement if it
      would result in an excess parachute payment under section 280G of the
      Internal Revenue Code of 1986.

ARTICLE 5. PROPRIETARY INFORMATION AND NON-COMPETITION

      The Employee shall, on the Effective Date, enter into a Key Employee
Invention Assignment and Confidentiality Agreement in the form as Exhibit C
attached hereto and a Non-Compete Agreement (together with the Key Employee
Invention Assignment and Confidentiality Agreement, the "Ancillary Agreements")
in the form as Exhibit D attached hereto. The Employee agrees that the entering
into the Ancillary Agreements is necessary to protect the interests of the
Company, its Subsidiaries or Affiliates and is reasonable and valid in
geographical and temporal scope and in all other respects. If any court
determines that this Article 5 or any provision in the Ancillary Agreements is
unenforceable because of the duration or geographical scope of such provision,
such court will have the power to reduce the duration or scope of such
provision, as the case may be, and, in its reduced form, such provision will be
enforceable.

ARTICLE 6. REMEDIES

      If the Employee commits a breach, or threatens to commit a breach, of any
provisions of this Agreement or the Ancillary Agreements (the "Breach"), the
Company shall have the right to terminate the employment under Section 3.2.1 and
claim for damages associated with the Breach, each of which shall be independent
of the others and shall be severally enforceable, and all of which shall be in
addition to, and not in lieu of, any other rights and remedies available under
law or in equity to the Company. To have the provisions hereof or of the
Ancillary Agreements enforced

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by any court in the State of New York, USA, it being acknowledged and agreed
that any breach or threatened breach of any of such provision by the Employee
will cause irreparable injury to the Company and that money damages will not
provide an adequate remedy to the Company.

ARTICLE 7. DISPUTE RESOLUTION

         Any dispute, controversy or claim, at any time arising out of or
relating to this Agreement, or the breach, termination or invalidity thereof
(other than any dispute, controversy or claim pursuant to the Key Employee
Invention Assignment and Confidentiality Agreement or Non-Compete Agreement
under the Articles 5 hereof, which may, at the option of the Company, be
submitted to any court having jurisdiction), shall be referred to the Hong Kong
courts for final and binding adjudication. The parties irrevocably waive, to the
fullest extent permitted by law, any objection the party may have to the laying
of venue for any such suit, action or proceeding brought in such court. THE
PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF
ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions of this
Article 7 shall for any reason be held invalid or unenforceable, it is the
specific intent of the parties that such provisions shall be modified to the
minimum extent necessary to make it or its application valid and enforceable.

ARTICLE 8. GENERAL PROVISIONS

8.1   NOTICES. All notices, requests, claims, demands and other communications
      hereunder shall be in writing and shall be given (and shall be deemed to
      have been duly received if so given) by hand delivery, telegram, telex, or
      telecopy, or facsimile transmission, or by mail (registered or certified
      mail, postage prepaid, return receipt requested) or by any courier
      service, providing proof of delivery. All communications hereunder shall
      be delivered to the respective parties at the following addresses or to
      such other address as the party to whom notice is given may have
      previously furnished to the other parties hereto in writing in the manner
      set forth above:

         If to the Employee:  Mr. Raymond Yang Lei
                              c/o Linktone Ltd.
                              5th Floor, No. 689 Beijing Dong Rd.
                              Shanghai 200001
                              People's Republic of China

         If to the Company:   Linktone Ltd.
                              5th Floor, No. 689 Beijing Dong Rd.
                              Shanghai 200001
                              People's Republic of China

8.2   ENTIRE AGREEMENT. This Agreement, taken together with the Ancillary
      Agreements, shall constitute the entire agreement between the Employee and
      the Company with respect to the Employee's employment with the Company and
      supersedes any and all prior agreements and understandings, including but
      not limited to the Original Employment Agreement, written or oral, with
      respect thereto.

8.3   AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended and the

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      observance of any term of this Agreement may be waived (either generally
      or in a particular instance and either retroactively or prospectively)
      only by an instrument in writing and signed by the party against whom such
      amendment or waiver is sought to be enforced.

8.4   SUCCESSORS AND ASSIGNS. The personal services of the Employee are the
      subject of this Agreement and the Ancillary Agreements and no part of the
      Employee's or the Company's rights or obligations hereunder or thereunder
      may be assigned, transferred, pledged or encumbered by the Employee or the
      Company. This Agreement and the Ancillary Agreements shall inure to the
      benefit of, and be binding upon (a) the parties hereto, (b) the heirs,
      administrators, executors and personal representatives of the Employee and
      (c) the successors and assigns of the Company as provided herein.

8.5   GOVERNING LAW AND VENUE. This Agreement, including the validity hereof and
      the rights and obligations of the parties hereunder, and all amendments
      and supplements hereof and all waivers and consents hereunder, shall be
      construed in accordance with and governed by the laws of the State of New
      York, USA, without giving effect to any conflicts of law provisions or
      rule, that would cause the application of the laws of any other
      jurisdiction.

8.6   SEVERABILITY. If any provisions of this Agreement, as applied to any part
      or to any circumstance, shall be adjudged by a court to be invalid or
      unenforceable, the same shall in no way affect any other provision of this
      Agreement, the application of such provision in any other circumstances or
      the validity or enforceability of this Agreement.

8.7   SURVIVAL. The rights and obligations of the Company and Employee pursuant
      to Articles 3, 4, 5, 6 and 7 shall survive the termination of the
      Employee's employment with the Company and the expiration of the
      Employment Term.

8.8   CAPTIONS. The headings and captions used in this Agreement are used for
      convenience only and are not to be considered in construing or
      interpreting this Agreement.

8.9   COUNTERPARTS. This Agreement may be executed in two or more counterparts,
      each of which shall be deemed an original, but all of which together shall
      constitute one and the same instrument.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first above written.

EMPLOYEE

By: /s/ Raymond Lei Yang
    ---------------------------
    Raymond Lei Yang

COMPANY

By: /s/ Elaine La Roche
    ---------------------------
    Name: Elaine La Roche
    Title: Chairperson

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                                                                       Exhibit A

                         2004 Annual Performance Targets

Financial Targets (representing 60% of the total annual target for the
Employee):

            -     Gross revenue and net income for fiscal year 2004 of at least
                  US$56 million and US$16 million, respectively;

            -     The Company's ADR price-to-earnings ratio as of the end of
                  2004 is in the top half among the following industry peers:
                  Tom Online, Sina, SOHU, NetEase and KongZhong, based on the
                  2005 projected results published by Piper Jaffray research
                  analysts or other suitable research report approved by the
                  Compensation Committee; and

            -     The Company does not receive a sanction or service suspension
                  from China Mobile or China Unicom either (i) on a nationwide
                  basis or (ii) from one or more provinces or municipalities
                  that are material to the Company's business, as determined by
                  the Company's independent directors.

Non-Financial Targets (representing 40% of the total annual target for the
Employee):

            -     Leadership of the development and integration of a senior
                  management team that formulates and implements mid-term and
                  long-term corporate strategies, as discussed below. Such
                  leadership includes at a minimum:

                  -  hiring senior marketing and human resources personnel, as
                  well as vice-president level personnel for strategy, M&A
                  and/or corporate development;

                  -  completing the cash, bonus and equity compensation matrix
                  for all members of senior management;

                  -  implementing a consistent, performance-based written
                  compensation structure for all officers and employees of the
                  Company which encourages employee retention and aligns the
                  interests of the employees with those of the Company and which
                  is under the continuous review and supervision of the
                  Compensation Committee; and

                  -  developing a comprehensive internal organizational
                  template, which shows principal job categories and/or levels
                  with salary and stock option ranges applicable to each
                  category/level. Also clearly defining which levels constitute
                  staff, managers, officers and executive officers,
                  respectively.

            -     Establishment and maintenance of a defined "Linktone culture"
                  which is focused on: (i) total compliance with all Company
                  policies and procedures (including, without limitation, the
                  Company's Code of Business Conduct, Amended and Restated
                  Pre-clearance and Blackout Policy and Insider Trading Policy),
                  and applicable laws, (ii) teamwork in implementing the
                  Company's corporate strategies at all levels of the Company
                  and (iii) striving to achieve a continuous improvement in the
                  Company's business, financial condition and results of
                  operations. The creation of this culture

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                  includes at a minimum:

                  -  setting a tone from the top from all executive officers
                  regarding compliance with Company policies and procedures and
                  applicable law, which includes promptly taking appropriate
                  remedial measures against employees who violate the foregoing,
                  and reporting violations or suspected violations to the Board
                  of Directors in a timely manner;

                  -  conducting periodic employee training on the foregoing and
                  other issues applicable to public companies under U.S.
                  securities laws and Nasdaq rules; and

                  -  designating and supervising both at least one member of
                  senior management and human resources personnel to take
                  responsibility for compliance issues, in particular U.S.
                  securities laws and Nasdaq compliance, and the development of
                  the overall "Linktone culture."

            -     Develop specific mid-term and long-term corporate strategies
                  with other members of management which are extensively
                  discussed with, and approved by, the Board of Directors prior
                  to implementation;

                  -  causing each executive officer to report regularly to the
                  Board of Directors on his understanding of the strategies and
                  how he will facilitate its implementation;

                  -  commencing implementation of 1-2 new strategy initiatives
                  by January 1, 2005;

                  -  devoting significant time to pursuing M&A and strategic
                  investment opportunities that complement the Company's
                  business, and entering into term sheets for (or complete) 1-2
                  M&A or strategic investments; and

                  -  providing the Chief Technology Officer with specific
                  milestones regarding product development and launching.

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                                                                       Exhibit B

                          Key Terms of New Option Grant

Plan under Which Granted:           2003 Stock Incentive Plan

Grant Date:                         July 19, 2004

Vesting Commencement Date:          July 19, 2004

Exercise Price per Ordinary Share:  US$1.04

Total number of Ordinary
Shares subject to the Option:       250,000

Total Exercise Price:               US$260,000

Expiration Date:                    July 18, 2014

Type of Option:                     Incentive

Post-Termination Exercise Period:   Three months

Vesting Schedule:                   25% of the Shares subject to the Option
                                    shall vest twelve months after the Vesting
                                    Commencement Date, and 1/48 of the Shares
                                    subject to the Option shall vest on each
                                    monthly anniversary of the Vesting
                                    Commencement Date thereafter.

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                                                                       Exhibit C

         Key Employee Invention Assignment and Confidentiality Agreement

      In consideration of, and as a condition of my continued employment with
Linktone Ltd., a Cayman Islands company (as contemplated in the employment
agreement between Linktone Ltd. and me (the "Agreement")), or with any of its
subsidiaries, including, without limitation, Shanghai Linktone Consulting Co.,
Ltd., Shanghai Huitong Information Co Ltd., Shanghai Weilan Computer Co. Ltd.
and Shanghai Unilink Computer Co. Ltd. (collectively, the "Company"), I hereby
represent to, and agree with, the Company as follows:

      I hereby represent to, and agree with the Company as follows:

1.    Purpose of Agreement. I understand that the Company is engaged in a
      continuous program of research, development, production and marketing in
      connection with its business and that it is critical for the Company to
      preserve and protect its Proprietary Information (as defined in Section 3
      below), its rights in Inventions (as defined in Section 2 below) and in
      any other intellectual property rights. Accordingly, I am entering into
      this Employee Invention Assignment and Confidentiality Agreement (this
      "Agreement") as a condition of my continued employment with the Company,
      whether or not I am expected to create inventions of value for the
      Company.

2.    Disclosure of Inventions. I will promptly disclose in confidence to the
      Company all inventions, improvements, designs, original works of
      authorship, derivative works, formulas, processes, compositions of matter,
      techniques, know-how, computer software programs, databases, mask works
      and trade secrets (the "Inventions") that I make or conceive or first
      reduce to practice or create, either alone or jointly with others, during
      the period of my employment, whether or not in the course of my
      employment, and whether or not such Inventions are patentable,
      copyrightable or protectible as trade secrets or mask works.

3.    Proprietary Information. I understand that my employment by the Company
      creates a relationship of confidence and trust with respect to any
      information of a confidential or secret nature that may be disclosed to me
      by the Company that relates to the business of the Company or to the
      business of any parent, subsidiary, affiliate, customer or supplier of the
      Company or any other party with whom the Company agrees to hold
      information of such party in confidence (the "Proprietary Information").
      Such Proprietary Information includes but is not limited to any
      confidential and/or proprietary knowledge, data or information, any past,
      present or future Inventions, marketing plans, product plans, business
      strategies, financial information (including budgets and unpublished
      financial statements), licenses, prices and costs, forecasts, personal
      information, suppliers, customers and lists of either, information, trade
      secrets, patents, mask works, ideas, confidential knowledge, data or other
      proprietary information relating to new and existing products, processes,
      know-how, designs, formulas, developmental or experimental work,
      improvements, discoveries, designs and techniques, computer programs, data
      bases, other original works of authorship, employee information including
      the skills and

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      compensation of other employees of Company, or other subject matter
      pertaining to any business of Company. I agree that Company may from time
      to time create a list of specific Proprietary Information and I will
      acknowledge any such lists in writing upon request.

4.    Confidentiality. At all times, both during my employment and after its
      termination, I will keep and hold all such Proprietary Information in
      strict confidence and trust. I will not use or disclose any Proprietary
      Information without the prior written consent of the Company, except as
      may be necessary to perform my duties as an employee of the Company for
      the benefit of the Company. Upon termination of my employment with the
      Company, I will promptly deliver to the Company all documents and
      materials of any nature pertaining to my work with the Company. I will not
      take with me any documents or materials or copies thereof containing any
      Proprietary Information.

5.    Work for Hire; Assignment of Inventions. I acknowledge and agree that any
      copyrightable works prepared by me either alone or jointly with others,
      within the scope of my employment are "works for hire" under the United
      States Copyright Act and that the Company will be considered the author
      and owner of such copyrightable works. In the event that any such
      copyrightable works are not deemed to be "works made for hire," I hereby
      irrevocably assign all of my right, title and interest in and to such
      copyrightable works to Company. I agree that all Inventions that (i) are
      developed using equipment, supplies, facilities or trade secrets of the
      Company, (ii) result from work performed by me for the Company, or (iii)
      relate to the Company's business or current or anticipated research and
      development (collectively, "Company Inventions"), will be the sole and
      exclusive property of the Company and are hereby irrevocably assigned by
      me to the Company.

6.    Assignment of Other Rights. In addition to the foregoing assignment of
      Company Inventions to the Company, I hereby irrevocably transfer and
      assign to the Company: (i) all worldwide patents, patent applications,
      copyrights, mask works, trade secrets and other intellectual property
      rights in any Company Invention; and (ii) any and all Moral Rights (as
      defined below) that I may have in or with respect to any Company
      Invention. I also hereby forever waive and agree never to assert any and
      all Moral Rights I may have in or with respect to any Company Invention,
      even after termination of my work on behalf of the Company. "Moral Rights"
      mean any rights to claim authorship of a Company Invention, to object to
      or prevent the modification of any Company Invention, or to withdraw from
      circulation or control the publication or distribution of any Company
      Invention, and any similar right, existing under judicial or statutory law
      of any country in the world, or under any treaty, regardless of whether or
      not such right is denominated or generally referred to as a "moral right".

7.    Assistance. For no consideration in addition to my salary or wages during
      my employment, I agree to assist the Company in every proper way to obtain
      for the Company and enforce patents, copyrights, mask work rights, trade
      secret rights and other legal protections for the Company's Inventions in
      any and all countries. I will execute any documents that the Company may
      reasonably request for use in obtaining or enforcing such patents,
      copyrights, mask work rights, trade secrets and other legal protections.
      My obligations under this paragraph will continue beyond the termination
      of my employment with the Company, provided that the Company will
      compensate me at a reasonable rate after such termination for time or
      expenses actually spent by me at the Company's request on such assistance.
      I appoint the Secretary of the Company as my

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      attorney-in-fact to execute documents on my behalf for this purpose. I
      hereby waive and quitclaim to Company any and all claims, of any nature
      whatsoever, which I now or may hereafter have for infringement of any
      proprietary rights assigned hereunder to Company.

8.    No Breach of Prior Agreement. I represent that my performance of all the
      terms of this Agreement and my duties as an employee of the Company will
      not breach any invention assignment, proprietary information,
      confidentiality or similar agreement with any former employer or other
      party. I represent that I did not bring with me to the Company or use in
      the performance of my duties for the Company any documents or materials or
      intangibles of a former employer or third party that are not generally
      available to the public or have not been legally transferred to the
      Company.

9.    Efforts; Duty Not to Compete. I understand that my employment with the
      Company requires my undivided attention and effort during normal business
      hours. While I am employed by the Company, I will not, without the
      Company's express prior written consent, provide services to, or assist in
      any manner, any business or third party which competes with the current or
      planned business of the Company.

10.   Notification. I hereby authorize the Company to notify my actual or future
      employers of the terms of this Agreement and my responsibilities
      hereunder.

11.   Non-Solicitation of Employees/Consultants. During my employment with the
      Company and for a period of one (1) year thereafter, I will not directly
      or indirectly solicit away employees or consultants of the Company for my
      own benefit or for the benefit of any other person or entity. "Solicit"
      shall not include the placement of an advertisement in a publication of
      general circulation.

12.   Non-Solicitation of Suppliers/Customers. During my employment with the
      Company and after termination of my employment, I will not directly or
      indirectly solicit or take away suppliers or customers of the Company if
      the identity of the supplier or customer or information about the supplier
      or customer relationship is a trade secret or is otherwise deemed
      confidential information within the meaning of Chinese law.

13.   Injunctive Relief. I understand that in the event of a breach or
      threatened breach of this Agreement by me the Company may suffer
      irreparable harm and will therefore be entitled to injunctive relief to
      enforce this Agreement, without prejudice to any other rights or remedies
      that Company may have for a breach of this Agreement.

14.   Governing Law; Severability. This Agreement will be governed by and
      construed in accordance with the laws of New York, without giving effect
      to that body of laws pertaining to conflict of laws. If any provision of
      this Agreement is determined by any court or arbitrator of competent
      jurisdiction to be invalid, illegal or unenforceable in any respect, such
      provision will be enforced to the maximum extent possible given the intent
      of the parties hereto. If such clause or provision cannot be so enforced,
      such provision shall be stricken from this Agreement and the remainder of
      this Agreement shall be enforced as if such invalid, illegal or
      unenforceable clause or provision had (to the extent not enforceable)
      never been contained in this Agreement. Notwithstanding the forgoing, if
      the value of this Agreement based upon the substantial benefit of the
      bargain for any party is materially impaired, which determination as made
      by the presiding court or arbitrator of competent jurisdiction shall be
      binding, then this Agreement will not be

Confidential            Copyright (C) 2004 Linktone Ltd.           Page 19 of 26

<PAGE>

      enforceable against such affected party and both parties agree to
      renegotiate such provision(s) in good faith.

15.   Counterparts. This Agreement may be executed in any number of
      counterparts, each of which when so executed and delivered will be deemed
      an original, and all of which together shall constitute one and the same
      agreement.

16.   Titles and Headings. The titles, captions and headings of this Agreement
      are included for ease of reference only and will be disregarded in
      interpreting or construing this Agreement. Unless otherwise specifically
      stated, all references herein to "sections" and "exhibits" will mean
      "sections" and "exhibits" to this Agreement.

17.   Entire Agreement. This Agreement and the documents referred to herein
      constitute the entire agreement and understanding of the parties with
      respect to the subject matter of this Agreement, and supersede all prior
      understandings and agreements, whether oral or written, between or among
      the parties hereto with respect to the specific subject matter hereof.

18.   Amendment and Waivers. This Agreement may be amended only by a written
      agreement executed by each of the parties hereto. No amendment of or
      waiver of, or modification of any obligation under this Agreement will be
      enforceable unless set forth in a writing signed by the party against
      which enforcement is sought. Any amendment effected in accordance with
      this section will be binding upon all parties hereto and each of their
      respective successors and assigns. No delay or failure to require
      performance of any provision of this Agreement shall constitute a waiver
      of that provision as to that or any other instance. No waiver granted
      under this Agreement as to any one provision herein shall constitute a
      subsequent waiver of such provision or of any other provision herein, nor
      shall it constitute the waiver of any performance other than the actual
      performance specifically waived.

19.   Successors and Assigns; Assignment. Except as otherwise provided in this
      Agreement, this Agreement, and the rights and obligations of the parties
      hereunder, will be binding upon and inure to the benefit of their
      respective successors, assigns, heirs, executors, administrators and legal
      representatives. The Company may assign any of its rights and obligations
      under this Agreement. No other party to this Agreement may assign, whether
      voluntarily or by operation of law, any of its rights and obligations
      under this Agreement, except with the prior written consent of the
      Company.

20.   Further Assurances. The parties agree to execute such further documents
      and instruments and to take such further actions as may be reasonably
      necessary to carry out the purposes and intent of this Agreement.

21.   Not Employment Contract. I understand that this Agreement does not
      constitute a contract of employment or obligate the Company to employ me
      for any stated period of time.

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<PAGE>

This Agreement shall be effective as of Effective Date.

EMPLOYEE

By: /s/ Raymond Lei Yang
    -----------------------------
    Raymond Lei Yang

COMPANY

By: /s/ Elaine La Roche
    -----------------------------
    Name:  Elaine La Roche
    Title: Chairperson

Confidential            Copyright (C) 2004 Linktone Ltd.           Page 21 of 26

<PAGE>

                                                                       Exhibit D

                              Non-Compete Agreement

Dear Raymond Yang Lei,

      As an employee of Linktone Ltd., a Cayman Islands company (as contemplated
in the employment agreement between Linktone Ltd. and me (the "Agreement")), or
with any of its subsidiaries, including, without limitation, Shanghai Linktone
Consulting Co., Ltd., Shanghai Huitong Information Co Ltd., Shanghai Weilan
Computer Co. Ltd. and Shanghai Unilink Computer Co. Ltd., (collectively, the
"Company"), you must execute and deliver a covenant not to compete with the
Company during your employment and for 12 months thereafter. The terms and
conditions set forth below, as applicable, shall, upon your acceptance thereof,
become an agreement between you and the Company.

COVENANT NOT TO COMPETE

      It is hereby agreed that, from the date hereof and so long as you are an
employee, consultant or serve in a similar capacity with the Company or any of
its subsidiaries, you shall devote substantially all of your professional time
to the Company and its subsidiaries and shall not participate in any manner in
the management or operation of any business other than that of the Company and
its subsidiaries or serving on the board of directors of the Company or any of
its subsidiaries.

      If your are no longer employed by or acting as a consultant for the
Company or its subsidiaries, you shall not be employed by or participate in any
manner in the management or operation of any business or entity that is or may
be directly competitive with and offering similar products or services as the
Company or its subsidiaries until 12 months after the date of termination of
employment with the Company or any subsidiary.

COVENANT NOT TO SOLICIT EMPLOYEES

      While employed by Company and for a period of two (2) years after the
termination of your employment with Company, you shall not, directly or
indirectly, solicit for employment any person who was employed by Company during
your employment with Company. In the event that you hire or employ any such
person during such two (2) year period (without soliciting such person in
violation of this foregoing restriction), you shall reimburse the Company for
any and all costs and expenses incurred by the Company to replace such person
(including, without limitation, costs and expenses incurred for recruiting,
hiring and training).

COVENANT NOT TO DIVERT BUSINESS

      For a period of two (2) years after the termination of your employment
with Company, you shall not, directly or indirectly:

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<PAGE>

      (i) work as an employee, employer, consultant, agent, principal, partner,
manager, stockholder, officer, director, or in any other individual or
representative capacity for any person or entity who or which was a customer of
Company during your employment with Company, without the Company's written
consent; or

      (ii) call on, solicit, or take away for you or for any other person or
entity any person or entity who or which was a customer of Company, or with
which Company was in negotiations to become a customer of Company, during your
employment with Company.

COMPANY RIGHTS IF YOU VIOLATE THIS AGREEMENT

      In the event that you do not comply with the terms of this Agreement, any
profit sharing or stock options to which you would otherwise be entitled will be
forfeited.

      In the event you do not comply with the terms of this Agreement, we also
reserve the right to discharge you as an employee. Furthermore, we reserve the
right to recover monetary damages from you, and we may also recover punitive
damages to the extent permitted by law. In the event that monetary damages are
an inadequate remedy for any harm suffered by us as a result of a breach of this
Agreement by you, we may also seek other relief, including an order of specific
performance or injunctive relief. You will not seek, and you agree to waive any
requirement for, the securing or posting of a bond in connection with our
seeking or obtaining such relief.

      You further agree to indemnify and hold us harmless from any damages,
losses, costs or liabilities (including legal fees and the costs of enforcing
this indemnity agreement) arising out of or resulting from your failure to abide
by the terms of this Agreement.

AT-WILL EMPLOYMENT

      You agree and understand that, except as may be provided in any employment
agreement between you and the Company, your employment with the Company is
"at-will," meaning that it is not for any specified period of time and can be
terminated by you or by the Company at any time, with or without advance notice,
and for any or no particular reason or cause. You agree and understand that it
also means that job duties, title and responsibility and reporting level,
compensation and benefits, as well as the Company's personnel policies and
procedures, may be changed at any time at-will by the Company. You understand
and agree that nothing about the fact or the content of this Agreement is
intended to, nor should be construed to, alter the at-will nature of your
employment with the Company. You also understand and agree that the at-will
nature of employment with the Company can only be changed by the Chief Executive
Officer or President of the Company in an express writing signed and dated by
him or her and by you.

ACKNOWLEDGMENT

      You agree that, in light of the substantial benefits you will receive as
our employee, the terms contained in this Agreement are necessary and reasonable
in all respects and that the restrictions imposed on you are reasonable and
necessary to protect our legitimate business interests. You acknowledge that a
portion of the salary you receive during your employment with

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<PAGE>

the Company constitutes due consideration for your obligations hereunder.
Additionally, you hereby acknowledge and agree that the restrictions imposed on
you by this Agreement will not prevent you from obtaining employment in your
field of expertise or cause you undue hardship.

GOVERNING LAW

      This Agreement shall be governed by and construed in accordance with the
laws of the New York, without regard to any conflicts of laws provision thereof.

      By accepting this Agreement, you acknowledge that, given the nature of the
Company's business, the provisions contained in this Agreement contain
reasonable limitations as to time, geographical area and scope of activity to be
restrained, and do not impose a greater restraint than is necessary to protect
and preserve the Company and to protect the Company's legitimate interests. If,
however, the provisions of this Agreement are determined by any court of
competent jurisdiction or any arbitrator to be unenforceable by reason of its
extending for too long a period of time or over too large a geographic area or
by reason of its being too extensive in any other respect, or for any other
reason, it will be interpreted to extend only over the longest period of time
for which it may be enforceable and over the largest geographical area as to
which it may be enforceable and to the maximum extent in all other aspects as to
which it may be enforceable, all as determined by such court or arbitrator in
such action.

      Please confirm your agreement with the foregoing by signing and returning
directly to the undersigned the duplicate copy of this letter enclosed herewith.

                                                  Very truly yours,

                                                  Linktone Ltd.

                                             By:  /s/ Elaine La Roche
                                                  -----------------------------
                                                  Name: Elaine La Roche
                                                  Title: Chairperson

Accepted and Agreed to as
of the date first above written:

/s/ Raymond Yang Lei
-----------------------------
Raymond Yang Lei

Confidential            Copyright (C) 2004 Linktone Ltd.           Page 24 of 26

<PAGE>

                                                                       Exhibit E

                           Form of Release Certificate

______________ ("You") and Linktone Ltd. (the "Company") have agreed to enter
into this Release Certificate on the following terms:

      Within ten (10) days after you sign this Release Certificate (which you
may sign no sooner than the last day of your employment with the Company), you
will become eligible to receive severance benefits in accordance with the terms
of your Employment Agreement dated [date] ("Agreement").

      In return for the consideration described in the Agreement, you and your
representatives completely release Linktone Ltd., its affiliated, related,
parent or subsidiary corporations, and its and their present and former
directors, officers, and employees (the "Released Parties") from all claims of
any kind, known and unknown, which you may now have or have ever had against any
of them, or arising out of your relationship with any of them, including all
claims arising from your employment or the termination of your employment,
whether based on contract, tort, statute, local ordinance, regulation or any
comparable law in any jurisdiction ("Released Claims"). By way of example and
not in limitation, the Released Claims shall include any claims arising under
Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act,
the Worker Adjustment and Retraining Notification Act, the Age Discrimination in
Employment Act, and the New York Human Rights Law, or any comparable law of any
other jurisdiction or nation, as well as any claims asserting wrongful
termination, breach of contract, breach of the covenant of good faith and fair
dealing, negligent or intentional misrepresentation, and defamation and any
claims for attorneys' fees. You also agree not to initiate or cause to be
initiated against any of the Released Parties any lawsuit, compliance review,
administrative claim, investigation or proceedings of any kind which pertain in
any manner to the Released Claims.

      You acknowledge that the release of claims under the Age Discrimination in
Employment Act ("ADEA") is subject to special waiver protection. Therefore, you
acknowledge the following: (a) you have had 21 days to consider this Release
Certificate (but may sign it at any time beforehand if you so desire); (b) you
can consult an attorney in doing so; (c) you can revoke this Release Certificate
within seven (7) days of signing it by sending a certified letter to that effect
to [name and address]; and that (d) notwithstanding the foregoing, the portion
of this Release Certificate that pertains to the release of claims under the
ADEA shall not become effective or enforceable and no funds shall be exchanged
until the 7-day revocation period has expired, but that all other provisions of
this Release Certificate will become effective upon its execution by the
parties.

      The parties agree that this Release Certificate and the Agreement contain
all of our agreements and understandings with respect to their subject matter,
and may not be contradicted by evidence of any prior or contemporaneous
agreement, except to the extent that the provisions of any such agreement have
been expressly referred to in this Release Certificate or the Agreement as
having continued effect. It is agreed that this Release Certificate shall be
governed by the laws of the State of New York. If any provision of this Release
Certificate or its application to any person, place, or circumstance is held by
a court of competent jurisdiction to be invalid, unenforceable, or void, the
remainder of this Release Certificate and such provision as applied to other
person, places, and circumstances will remain in full force and effect.

Confidential            Copyright (C) 2004 Linktone Ltd.           Page 25 of 26

<PAGE>

      Please note that this Release Certificate may not be signed before the
last day of your employment with the Company, and that your eligibility for
severance benefits is conditioned upon meeting the terms set forth in the
Agreement.

_______________________________     Date: ___________________
      [Employee]

_______________________________     Date: ___________________
    [Company Signatory]

Confidential            Copyright (C) 2004 Linktone Ltd.           Page 26 of 26

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