Document:

EXECUTION VERSION

 

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration  Rights Agreement (this “Agreement”) is made and entered into on August 28, 2012 (the
“Effective Date”), by and between KongZhong Corporation,
a corporation duly organized and validly existing under the laws of the Cayman Islands, with its principal
place of business at 35th Floor, Tengda Plaza, No. 168 Xizhimen Street, Beijing 100044, the People’s Republic
of China (the “Company”), and ArenaNet,
Inc., a corporation duly organized and validly existing under the laws of the state of Washington
in the United States of America, with its principal place of business at 3180 139th Avenue South
East, 5th Floor, Bellevue, WA 98005, the United States (the “Investor”,
and together with the Company, the “Parties” or each a “Party”).  

 

RECITALS

 

WHEREAS,
the Company and the Investor are parties to the License Agreement (as defined below), pursuant to which the Company is obligated
to issue to the Investor a warrant to purchase 40,000,000 ordinary shares of the Company, par value US$0.0000005 per share (the
“Ordinary Shares”) (such warrant, the “Warrant”).

 

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

 

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

 

1.             Certain
Definitions. In addition
to the terms defined elsewhere in this Agreement, the terms set forth below shall have the following meanings:

 

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

  

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

 

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

 

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

 

“License
Agreement” means the Guild Wars 2 Game License Agreement dated August 28, 2012, among the ArenaNet, Inc., KongZhong Corporation,
Shanghai KongZhong Brilliant Game Company Limited (上海空中宏电网络技术有限公司)
and KongZhong Information Technologies (Beijing) Company Limited (空中信通信息技术(北京)有限公司).

 

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

 

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

 

“Permitted
Transferee” means an Affiliate of the Investor or any third party that purchases all or substantially all of the assets
of the Investor.

 

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

 

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

 

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

 

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

 

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

  

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

 

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

 

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

 

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

 

“Transfer”
has the meaning set forth in the Warrant.

 

“Warrant”
has the meaning set forth in the Recitals hereto.

 

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

 

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

 

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

 

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

 

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

 

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

  

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

 

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

 

		vii.	the headings contained in this Agreement are for
reference purposes only and are not part of this Agreement; and 

 

		viii.	capitalized terms not otherwise defined herein shall have the respective meanings indicated in the
Licensee Agreement

 

2.            F-3
Registration.

 

(A)         Initial
Registration. Subject to the other provisions of this Agreement and the eligibility of the Company to use Form F-3, the Company
shall use reasonable best efforts to prepare and file or cause to be prepared and filed with the Commission, as soon as practicable
but in any event by the date that is thirty (30) calendar days after the Open Beta Launch Date, a Registration Statement on Form
F-3 for an offering to be made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act registering the resale
from time to time of the Registrable Shares by the Investor (the “Shelf Registration Statement”). 

  

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

 

3.            Registration
Procedures.  

 

(A)         In
connection with the registration obligations of the Company under Section 2 hereof, the Company shall:

 

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		i.	subject to the other provisions of this Agreement, use its reasonable
best efforts to cause the Shelf Registration Statement to be declared effective under the Securities Act as promptly as is practicable
but in any event by the date that is sixty (60) calendar days after the Open Beta Launch Date (provided that the Commission
does not raise substantial comments on the Shelf Registration Statement) and to keep the Shelf Registration Statement continuously
effective under the Securities Act until the expiration of the Effectiveness Period. At the time the Shelf Registration Statement
is declared effective, the Investor shall be named as a selling security holder in the Shelf Registration Statement and the related
Prospectus in such a manner as to permit the Investor to deliver such Prospectus to purchasers of Registrable Shares in accordance
with applicable law;  

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(E)         The
Investor shall provide, at least five (5) Business Days prior to the anticipated filing date of the Registration Statement, all
requested information required to be provided by the Investor for inclusion therein.  If the Investor fails to provide
such information at least five (5) Business Days prior to the anticipated filing date, the Company shall have the right to defer
the filing of the Registration Statement by such an amount of time as it takes to obtain and reflect in the Registration Statement
all information that is necessary or advisable to be reflected in the Registration Statement and as would be necessary or advisable
under the then-existing market conditions.  The Investor shall, as soon as reasonably practicable, notify the Company
in the event that any information supplied by the Investor for inclusion in any Registration Statement or related Prospectus contains
an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, and immediately discontinue (and direct any other Persons making
offers and sales of the Registrable Shares to immediately discontinue) offers and sales of such Registrable Shares pursuant to
such Registration Statement until the Investor is advised in writing by the Company that the use of the Prospectus may be resumed
and is furnished with a supplemented or amended Prospectus as contemplated by Section 3(A)(iv) and if so directed by the
Company, deliver to the Company as soon as reasonably practical all copies of the Prospectus that, at the time of receipt of such
notice, cover such Registrable Shares.

  

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

 

4.            Piggyback
Registrations.

 

(A)         Right
to Piggyback. If the Company proposes to register any Ordinary Shares under the Securities Act (other than on a registration
statement on Form S-8, F-8, S-4 or F-4) at any time prior to the expiration of the Effectiveness Period, whether for its own
account or for the account of one or more holders of Ordinary Shares (other than the Investor), and the form of registration statement
to be used may be used for any registration of Registrable Shares (a “Piggyback Registration”), the Company
shall give written notice to the Investor of its intention to effect such a registration and, subject to Sections 4(B) and
4(C), shall include in such registration statement and in any offering of Ordinary Shares to be made pursuant to that registration
statement such amount of Registrable Shares that the Company and the Investor have mutually agreed upon, with respect to which
the Company has received a written request for inclusion therein from the Investor no more than five (5) Business Days after
the Company’s dispatch of its notice to the Investor or, in the case of a primary offering, such shorter time as is reasonably
specified by the Company in light of the circumstances, provided that such amount of Registrable Shares shall account for
not less than 20% of the total number of Ordinary Shares to be so registered unless the Company and the Investor agree otherwise.  The
Company shall have no obligation to proceed with any Piggyback Registration and may abandon, terminate and/or withdraw such registration
for any reason at any time prior to the pricing thereof.

 

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

    

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

 

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

 

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

 

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5.            Registration
Expenses. All expenses incident to the Company’s performance of or compliance with this Agreement, including all registration
and filing fees, fees and expenses of compliance with securities laws and printing expenses, and all independent certified public
accountants and other Persons retained by the Company (but not including any fees attributable to the sale of Registrable Shares),
shall be borne by the Company; provided that the first one hundred fifty thousand U.S. Dollars (US$150,000) of legal fees and expenses
for the Company’s counsel shall be borne by the Investor, excluding any legal fees and expenses related to updating the Company’s
disclosure in the relevant registration statements that the Company would ordinarily be required to update in connection with the
preparation of the Company’s annual report on Form 20-F. The Investor shall bear the cost of all underwriting discounts and
commissions associated with any sale of Registrable Shares and shall pay all of its own costs and expenses, including all fees
and expenses of any counsel (and any other advisers) representing the Investor, and any share transfer taxes and duties. 

 

6.            Indemnification.

 

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

  

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

 

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

 

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

 

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

  

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

 

8.             Assignment;
Transfers of Rights. Neither this Agreement nor any rights hereunder are assignable or transferable, without the prior written
consent of the Company; provided, however, if the Investor transfers the Warrant or any Warrant Shares to the Permitted
Transferee in accordance with Section 7(A) of the Warrant, this
Agreement may also be assigned to the Permitted Transferee without the prior written consent of the Company. Such Permitted Transferee
shall, together with all other such transferees as consented to by the Company, also have the rights of the Investor under this
Agreement, but only if such transferee signs and delivers to the Company a written acknowledgment (in form and substance satisfactory
to the Company) that it has joined with the Investor as a party to this Agreement and has assumed the rights and obligations of
the Investor hereunder with respect to the rights transferred to it by the Investor. Such permitted transfer shall be effective
when (but only when) such transferee has signed and delivered the written acknowledgment to the Company. Upon any such effective
transfer, such transferee shall automatically have the rights so transferred, and the Investor’s obligations under this Agreement,
and the rights not so transferred, shall continue, provided that under no circumstances shall the Company be required to
provide more than one Shelf Registration. Notwithstanding any other provision of this Agreement, no Person who acquires securities
transferred in violation of this Agreement or the Warrant, or who acquires securities that are not or upon acquisition cease to
be Registrable Shares, shall have any rights under this Agreement with respect to such securities, and such securities shall not
have the benefits afforded hereunder to Registrable Shares.

   

9.            Miscellaneous.

 

(A)         Future
Registration Rights.  Unless the Company and Investor agree otherwise, the Company agrees that it shall not grant
any registration rights to any third party (i) unless such rights are expressly made subject to the rights of the Investor in a
manner consistent with this Agreement or (ii) if such registration rights are senior to, or take priority over, the registration
rights granted to the Investor under this Agreement. Notwithstanding anything to the contrary in this Agreement, the registration
rights of the Investor under this Agreement shall be subject to the registration rights granted by the Company to Nokia Growth
Partners II, L.P. in the Registration Rights Agreement, dated as of March 18, 2009, until the expiration of such rights thereunder.

    	11

    	 

    

  

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

 

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

 

(D)         Governing
Law. The validity, construction and enforceability of this Agreement shall be governed by and construed in accordance with
the laws of the State of New York of the United States without regard to the choice of law principles or conflict of laws principles
thereof. 

 

(E)     
    Dispute Resolution and Arbitration. 

 

		i.	In the event that any controversy, claim or dispute arises between the
Parties concerning the interpretation, performance, breach, termination or validity
of this Agreement or any of the terms hereof (a “Dispute”), the Parties shall promptly engage in discussions
in good faith to resolve such Dispute. Any resolution of such Dispute shall be set forth in a writing signed by the Parties. 

 

		ii.	If any Dispute cannot be resolved by the Parties pursuant to Section 9(E)(i)
hereof or otherwise within thirty (30) calendar days, then either Party may submit such Dispute to the American Arbitration Association
(the “AAA”) for resolution by arbitration pursuant to the AAA rules in effect at the time of the arbitration,
except as modified herein. Such arbitration shall be the sole and exclusive forum for resolution of such Dispute, and the award
rendered shall be final and binding. Judgment on the award rendered may be entered in any court having jurisdiction thereof.

			 

		iii.	The procedures for arbitration pursuant to Section 9(E)(ii) shall be as
follows:

 

		a)	There shall be one arbitrator who shall be selected by the Parties upon
mutual agreement. If the Parties have not reached an agreement with respect to the selection of the arbitrator on or before the
thirtieth (30th) calendar day after the initiation of the arbitration, then the arbitrator shall be selected by the administering
authority.

 

		b)	The arbitration shall be conducted in the English language and any foreign-language
documents presented at such arbitration shall be accompanied by an English translation thereof. The arbitration shall be held in
the city of New York. 

 

    	12

    	 

    

 

 

		c)	Any award of the arbitrator (A) shall be in writing, (B) shall state the
reasons upon which such award is based and (C) may include an award of costs, including reasonable attorneys’ fees and disbursements.

 

		d)	The arbitrator shall have no authority to award punitive damages or any
other damages not measured by the prevailing Party’s actual or consequential damages, and the arbitrator may not, in any
event, make any ruling, finding or award that does not conform to the term and conditions of this Agreement.

 

		e)	Any Party may make an application to the arbitrator seeking injunctive
relief to maintain the status quo until such time as the arbitration award is rendered or the dispute, controversy or claim is
otherwise resolved. Any Party may apply to any court having jurisdiction and seek injunctive relief in order to maintain the status
quo until such time as the arbitration award is rendered or the dispute, controversy or claim is otherwise resolved.

 

		iv.	In the course of resolving disputes under this Agreement, to the extent
practicable the Parties shall continue to perform the terms and conditions of this
Agreement that are not in dispute.

 

(F)         Notices.  Any
notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed
to have been duly given (a) on the date of delivery if delivered personally, or by email, upon confirmation of receipt, or
(b) on the second (2nd) Business Day following the date of dispatch if delivered by a recognized next day courier service.  All
notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing
by the party to receive such notice.

 

If
to the Investor:

 

ArenaNet,
Inc.

3180 139th
Avenue South East, 5th Floor,

Bellevue,
WA 98005

United States

Attention:
Randall Price 

E-mail:
randy@arena.net

  

If
to the Company:

 

KongZhong
Corporation

35th Floor,
Tengda Plaza

No. 168
Xizhimenwai Street

Beijing
100044

China

Attention:
Jay Chang 

E-mail:
jaychang@kongzhong.com

 

    	13

    	 

    

 

with a
copy to:

 

Sullivan
& Cromwell

28th
Floor 

Nine
Queen’s Road Central

Hong
Kong 

Attention:
William Y. Chua

E-mail:
chuaw@sullcrom.com 

 

(G)         Entire
Agreement.  This Agreement, the Warrant, the License Agreement and the Bank Guarantee constitute the entire agreement,
and supersedes all other prior agreements, understandings, representations and warranties, both written and oral, among the Parties,
with respect to the subject matter hereof.

 

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

 

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

 

(J)         Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement may be executed and delivered by email and transmission by
email shall be considered proper delivery for legal purposes.

 

[Signature Page
Follows]

 

    	14

    	 

    

 

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

 

	KONGZHONG CORPORATION	 
	 	 
	By:	/s/ Leilei Wang	 
	Name:  Leilei Wang	 
	Title:  Chief Executive Officer	 

   

	ARENANET, INC.	 
	 	 
	By:	/s/ Randall Price	 
	Name:  Randall Price	 
	Title:  Senior Vice President	 

 

    	15THE
WARRANT REPRESENTED BY THIS INSTRUMENT AND THE SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED
OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

 

THE SECURITIES REPRESENTED
BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFER AND OTHER TERMS
OF THIS WARRANT.  ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFERS AND OTHER TERMS OF
THIS WARRANT SHALL BE VOID.

 

WARRANT

to
purchase

Ordinary
Shares

 of

KONGZHONG
CORPORATION

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

 

Issue
Date:  August 28, 2012

 

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

 

“ADSs”
means the American Depositary Shares of the Company, each representing forty (40) Ordinary Shares. 

 

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

  

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

 

“CFC”
means a “Controlled Foreign Corporation” as defined in the Code.

 

“Code”
means the U.S. Internal Revenue Code of 1986, as amended.

 

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

 

    	 

    	 

    

 

“Dispute”
has the meaning set forth in Section 14(C).

 

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

 

“Exercise
Price” means US$0.175.

 

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

 

“Hedging
Transaction” has the meaning set forth in Section 7(B).

 

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

 

“Party”
has the meaning set forth in Section 14(C).

 

“Permitted
Transferee” means an Affiliate of ArenaNet, Inc. or any third party that gains control over ArenaNet in a change in control
transaction, including any third party that purchases all or substantially all of the assets of ArenaNet, Inc. 

 

“PFIC”
means the passive foreign investment company as defined in Section 1297 of the Code.

 

“License
Agreement” means the Guild Wars 2 Game License Agreement dated August 28, 2012, among the ArenaNet, Inc., KongZhong Corporation,
Shanghai KongZhong Brilliant Game Company Limited (上海空中宏电网络技术有限公司)
and KongZhong Information Technologies (Beijing) Company Limited (空中信通信息技术(北京)有限公司).

 

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

 

“Transaction
Documents” means this Warrant, the License Agreement, the Bank Guarantee and the Registration Rights Agreement.

 

“Transfer”
has the meaning set forth in Section 7(A).

 

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

 

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

 

“Warrant
Shares” means the Ordinary Shares issuable upon exercise of this Warrant. 

 

2.        Number
of Shares; Exercise Price. This certifies that, for value received, ArenaNet, Inc. or its Permitted Transferee, as the case
may be, as the holder of this Warrant (the “Warrantholder”), is entitled, upon the terms and subject to the
conditions hereinafter set forth, to acquire from the Company up to an aggregate of 40,000,000 Ordinary Shares, at a purchase price
per Ordinary Share equal to the Exercise Price. The number of Ordinary Shares and the Exercise Price are subject to adjustment
as provided herein, and all references to “Ordinary Shares” and “Exercise Price” herein shall be deemed
to include any such adjustment or series of adjustments. 

 

    	2

    	 

    

 

3.        Exercise of
Warrant; Term. To the extent permitted by applicable laws and regulations, the right to purchase the Ordinary Shares represented
by this Warrant is exercisable, in whole but not in part by the Warrantholder, at any time on or after the Open Beta Launch
Date, but in no event later than 5:00 p.m., New York City time, on the date
that is the first (1st) anniversary of the Open Beta Launch Date
(the “Expiration Time”), by (A) the surrender of this Warrant and the delivery of the Notice of Exercise in
substantially the form attached hereto as Annex I, duly completed and executed on behalf of the Warrantholder, at the principal
executive office of the Company located at 35th Floor, Tengda Plaza, No. 168 Xizhimenwai Street, Beijing 100044, People’s
Republic of China (or such other office or agency of the Company as it may designate by notice in writing to the Warrantholder)
and (B) payment of the Exercise Price for the Ordinary Shares thereby purchased at the election of the Warrantholder by wire transfer
of immediately available funds to an account designated by the Company. 

  

4.        Issuance
of Shares; Authorization. The Company shall enter the Warrantholder in the Company’s Register of Members as the holder
of the Ordinary Shares issued upon the exercise of this Warrant, and certificates for Ordinary Shares issued upon exercise of this
Warrant will be issued in the name of the Warrantholder and delivered to the Warrantholder, in each case, as promptly as is reasonably
practicable, not to exceed five (5) Business Days after the date on which this Warrant has been duly exercised in accordance with
the terms of this Warrant. The Company hereby represents and warrants that any Ordinary Shares issuable upon the exercise of this
Warrant in accordance with the provisions of Section 3 will be duly authorized and when issued upon exercise of this Warrant against
payment therefor in accordance with the terms of this Warrant, will be validly issued, fully paid and non-assessable.

 

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

 

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

 

7.        Transfer/Assignment.

 

(A)  
The Warrantholder shall not, without the prior written consent of the Company, directly or indirectly transfer, sell, contract
to sell, assign, pledge, convey, lend, hypothecate, grant any option to purchase, purchase any option to sell, make any short sale
or otherwise encumber or dispose of (including entering into any swap or other arrangement that transfers to another, in whole
or in part, any of the economic consequence of ownership interests) this Warrant. Each transaction referenced in this clause
is herein called a “Transfer”. Notwithstanding the foregoing, this Warrant may be transferred to a Permitted
Transferee without the prior written consent of the Company, but only if such Permitted Transferee agrees in writing for the benefit
of the Company to be bound by the terms of this Warrant as applicable to the transferor (including these transfer restrictions);
provided further that no such Transfer shall relieve ArenaNet, Inc. of its obligations under the Transaction Documents.
The Warrantholder shall provide written notice to the Company of any Transfer of this Warrant to a Permitted Transferee within
thirty (30) calendar days after such Transfer.  In the event that this Warrant
is transferred to a Permitted Transferee or to another transferee with the consent of the Company, a new warrant shall be made
and delivered by the Company, of the same tenor and date as this Warrant but registered in the name of the such transferee, upon
surrender of this Warrant, duly endorsed, to the office or agency of the Company described in Section 3. 

 

    	3

    	 

    

 

(B)  
Without the prior written consent of the Company, the Warrantholder may not at any time engage in any Hedging Transaction
with respect to this Warrant or any Warrant Shares. “Hedging Transaction” means any short sale (whether or
not against the box) or any purchase, sale or grant of any right (including any put or call option, swap or other derivative
transaction whether settled in cash or securities) to obtain a “short” or “put equivalent position”
with respect to the Ordinary Shares.

 

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

 

(D)   The
Warrantholder agrees that all certificates or other instruments representing the Warrant Shares shall bear a legend substantially
to the following effect:

 

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

 

THESE
ORDINARY SHARES WERE ISSUED UPON THE EXERCISE OF A WARRANT DATED AUGUST 28, 2012, A COPY OF WHICH IS ON FILE WITH THE ISSUER. THESE
ORDINARY SHARES ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN SUCH WARRANT, AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED
EXCEPT IN COMPLIANCE WITH SUCH WARRANT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SUCH WARRANT WILL BE VOID.”

 

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

 

    	4

    	 

    

 

8.        SEC
Reports; NASDAQ Listing.  For so long as the Warrantholder continues to hold this Warrant or any Warrant Shares,
the Company shall file with the United States Securities and Exchange Commission in a timely manner all reports and other documents
required to be filed by the Company pursuant to the Exchange Act.  For so long as the Warrantholder continues to hold
this Warrant or any Warrant Shares, the Company shall use its reasonable best efforts to maintain the listing of its ADSs on the
NASDAQ Global Select Market. 

 

9.        Regulation
D Compliance. 

 

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

 

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

 

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

 

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

  

12.      Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
day that is a Business Day.

 

    	5

    	 

    

 

13.      Adjustments
and Other Rights. The Exercise Price and the number of Ordinary Shares issuable upon exercise of this Warrant shall be subject
to adjustment from time to time as follows; provided, that if more than one subsection of this Section 13 is applicable
to a single event, no single event shall cause an adjustment under more than one subsection of this Section 13 so as to result
in duplication:

 

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

 

(B)   Business
Combinations.  In case of any Business Combination or reclassification of the Ordinary Shares (other than a reclassification
of Ordinary Shares referred to in Section 13(A)), the Warrantholder’s right to receive Ordinary Shares upon exercise of this
Warrant shall be converted into the right to exercise this Warrant to acquire the number of shares or other securities or property
which the Ordinary Shares issuable (at the time of such Business Combination or reclassification) upon exercise of this Warrant
immediately prior to such Business Combination or reclassification would have been entitled to receive upon consummation of such
Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the
rights and interests thereafter of the Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably
be, to the Warrantholder’s right to exercise this Warrant in exchange for any shares or other securities or property pursuant
to this paragraph.  In determining the kind and amount of shares, securities or the property receivable upon exercise
of this Warrant following the consummation of such Business Combination, if the holders of Ordinary Shares have the right to elect
the kind or amount of consideration receivable upon consummation of such Business Combination, then the Warrantholder shall have
the right to make a similar election (including, without limitation, being subject to similar proration constraints) upon exercise
of this Warrant with respect to the number of shares or other securities or property which the Warrantholder will receive upon
exercise of this Warrant.

  

(C)   Rounding
of Calculations; Minimum Adjustments.  All calculations under this Section 13 shall be made to the nearest one-tenth
(1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 13 to
the contrary notwithstanding, no adjustment in the Exercise Price or the number of Ordinary Shares into which this Warrant is exercisable
shall be made if the amount of such adjustment would be less than US$0.01 or one-tenth (1/10th) of an Ordinary Share, but any such
amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent
adjustment which, together with such amount and any other amount or amounts so carried forward, shall in the aggregate be US$0.01
or 1/10th of an Ordinary Share, or more.

 

    	6

    	 

    

 

(D)   Timing
of Issuance of Additional Ordinary Shares Upon Certain Adjustments.  In any case in which the provisions of this
Section 13 shall require that an adjustment shall become effective immediately after a record date for an event, the Company may
defer until the occurrence of such event (i) issuing to the Warrantholder of this Warrant exercised after such record date and
before the occurrence of such event, the additional Ordinary Shares issuable upon such exercise by reason of the adjustment required
by such event, over and above the Ordinary Shares issuable upon such exercise before giving effect to such adjustment and (ii)
paying to such Warrantholder any amount of cash in lieu of a fractional Ordinary Share; provided, however, that the
Company upon request shall deliver to such Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder’s
right to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment.

 

(E)   Notice
of Adjustment Event.  In the event that the Company shall propose to take any action of the type described in this
Section 13 (but only if the action of the type described in this Section 13 would result in an adjustment in the Exercise Price
or the number of Ordinary Shares into which this Warrant is exercisable or a change in the type of securities or property to be
delivered upon exercise of this Warrant), the Company shall give prompt notice to the Warrantholder, in the manner set forth in
Section 14(D), which notice shall specify the record date, if any, with respect to any such action and the approximate date on
which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary
to indicate the effect on the Exercise Price and the number, kind or class of shares or other securities or property which shall
be deliverable upon exercise of this Warrant. In the case of any action which would require the fixing of a record date, such notice
shall be given at least five (5) Business Days prior to the date so fixed, and in case of all other action, such notice shall be
given at least ten (10) Business Days prior to the taking of such proposed action. Failure to give such notice, or any defect therein,
shall not affect the legality or validity of any such action.

 

(F)   Adjustment
Rules.  Any adjustments pursuant to this Section 13 shall be made successively whenever an event referred to
herein shall occur. If an adjustment in Exercise Price made hereunder would reduce the Exercise Price to an amount below the par
value of the Ordinary Shares, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par
value of the Ordinary Shares.

 

		14.	Miscellaneous. 

 

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

 

(B)   Governing
Law. The validity, construction and enforceability
of this Warrant shall be governed by and construed in accordance with the laws of
the State of New York of the United States without regard to the choice of law principles or conflict of laws principles thereof.

 

    	7

    	 

    

 

(C)   Dispute
Resolution and Arbitration.

 

		i.	In the event that any controversy, claim or dispute arises between the
Warrantholder and the Company (each, a “Party” and collectively, the “Parties”) concerning
the interpretation, performance, breach, termination or validity of this Warrant or any of the terms hereof (a “Dispute”),
the Parties shall promptly engage in discussions in good faith to resolve such Dispute. Any resolution
of such Dispute shall be set forth in a writing signed by the Parties. 

 

		ii.	If any Dispute cannot be resolved by the Parties pursuant to Section 14(C)(i)
hereof or otherwise within thirty (30) calendar days, then either Party may submit such Dispute to the American Arbitration Association
(the “AAA”) for resolution by arbitration pursuant to the rules of the AAA in effect at the time of the arbitration,
except as modified herein. Such arbitration shall be the sole and exclusive forum for resolution of such Dispute, and the award
rendered shall be final and binding. Judgment on the award rendered may be entered in any court having jurisdiction thereof. 

	 	 	 

			

		iii.	The procedures for arbitration pursuant
to Section 14(C)(ii) shall be as follows:

 

		a)	There shall be one arbitrator who shall be selected by the Parties upon
mutual agreement. If the Parties have not reached an agreement with respect to the selection of the arbitrator on or before the
thirtieth (30th) calendar day after the initiation of the arbitration, then the arbitrator shall be selected by the administering
authority. 

 

		b)	The arbitration shall be conducted in the English language and any foreign-language
documents presented at such arbitration shall be accompanied by an English translation thereof. The arbitration shall be held in
the city of New York. 

 

		c)	Any award of the arbitrator (A) shall be in writing, (B) shall state the
reasons upon which such award is based and (C) may include an award of costs, including reasonable attorneys’ fees and disbursements.

 

		d)	The arbitrator shall have no authority to award punitive damages or any
other damages not measured by the prevailing Party’s actual or consequential damages, and the arbitrator may not, in any
event, make any ruling, finding or award that does not conform to the term and conditions of this Warrant.

 

		e)	Any Party may make an application to the arbitrator seeking injunctive
relief to maintain the status quo until such time as the arbitration award is rendered or the dispute, controversy or claim is
otherwise resolved. Any Party may apply to any court having jurisdiction and seek injunctive relief in order to maintain the status
quo until such time as the arbitration award is rendered or the dispute, controversy or claim is otherwise resolved.

 

		iv.	In the course of resolving disputes under this Warrant, to the extent practicable
the Parties shall continue to perform the terms and conditions of this Warrant that are not in
dispute.

 

    	8

    	 

    

 

(D)   Notices.
Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will
be deemed to have been duly given (a) on the date of delivery if delivered personally, or by email, upon confirmation of receipt,
or (b) on the second (2nd) Business Day following the date of dispatch if delivered by a recognized next day courier service. All
notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing
by the party to receive such notice.

 

	If to the Company,
	 
	KongZhong Corporation
	35th Floor, Tengda Plaza
	No. 168 Xizhimenwai Street
	Beijing 100044
	People’s Republic of China
	Attention: Chief Financial Officer
	E-mail: jaychang@kongzhong.com
	 
	with a copy to:
	 
	Sullivan & Cromwell
	28th Floor 
	Nine Queen’s Road Central
	Hong Kong 
	Attention: William Y. Chua
	E-mail: chuaw@sullcrom.com
	 
	If to ArenaNet, Inc.:
	 
	ArenaNet, Inc.
	3180 139th Avenue South East, 5th Floor,
	Bellevue, WA 98005 
	United States of America
	Attention: Randall Price
	E-mail: randy@arena.net

 

(E)    Entire
Agreement. This Warrant and other Transaction Documents, including the schedules and exhibits hereto and thereto, constitute
the entire agreement among the Parties, and supersede all other prior agreements, understandings, representations and warranties,
both written and oral, among the parties, with respect to the subject matter hereof.

 

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

 

(G)    No
Third-Party Beneficiaries. Nothing contained in this Warrant, expressed or implied, is intended to confer upon any person or
entity other than the Company and ArenaNet, Inc. (and the Permitted Transferee
or other transferee to which a transfer is made in accordance with this Agreement), any benefits, rights, or remedies. 

 

    	9

    	 

    

 

(H)    Counterparts.
This Warrant may be executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Warrant may be executed and delivered by email and transmission by
email shall be considered proper delivery for legal purposes.

 

[The remainder
of this page is intentionally left blank]

 

    	10

    	 

    

 

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

 

Dated:
August 28, 2012

 

	KONGZHONG CORPORATION	 
	 	 
	By:	 	 
	Name: Leilei Wang	 
	Title: Chief Executive Officer	 
	 	 	 

 

    	11

    	 

    

 

ANNEX
I

FORM
OF NOTICE OF EXERCISE

 

Date:  [   ]

 

To:  KongZhong
Corporation

 

Re:  Election
to Purchase Ordinary Shares

 

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

 

Number
of Ordinary Shares: [  ]

 

Aggregate
Exercise Price: [  ]

 

	
        ARENANET,
INC 
	 
	 	 
	By:		 
	Name:	 
	Title:	 

 

    	12

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