Document:

Exhibit 10.6

 

Borqs
Technologies, Inc.

(as the Chargor)

 

BOrqs
International HOlding Corp

(as the Company)

 

and

 

Partners
for growth v, L.P.

(as the Chargee)

  

	 	
         

        EQUITABLE
        MORTGAGE

         

        over registered shares in a Cayman Islands
        exempted company

         
	 

 

WARNING

 

THE TAKING OR SENDING BY ANY PERSON
OF AN ORIGINAL OF THIS DOCUMENT INTO THE 

CAYMAN ISLANDS MAY GIVE RISE TO THE IMPOSITION OF CAYMAN ISLANDS STAMP DUTY

 

 

     

     

    

 

Content

 

	1	Interpretation	1
	 	 	 
	2	Principal payment obligation	3
	 	 	 
	3	Creation of security	4
	 	 	 
	4	Representations	4
	 	 	 
	5	Covenants	7
	 	 	 
	6	Shares	8
	 	 	 
	7	When security becomes enforceable	11
	 	 	 
	8	Enforcement of security	11
	 	 	 
	9	Receiver	12
	 	 	 
	10	Powers of receiver	13
	 	 	 
	11	Application of proceeds	14
	 	 	 
	12	Expenses and indemnity	14
	 	 	 
	13	Delegation	14
	 	 	 
	14	Further assurances	15
	 	 	 
	15	Power of attorney	15
	 	 	 
	16	Preservation	16
	 	 	 
	17	Miscellaneous	17
	 	 	 
	18	Notices	19
	 	 	 
	19	Release	20
	 	 	 
	20	Set off	20
	 	 	 
	21	Third Party Rights	20
	 	 	 
	22	Jurisdiction	20
	 	 	 
	23	Governing law	21
	 	 	 
	SCHEDULE 1	22
	 	 
	SCHEDULE 2	24

 

     

     

    

 

THIS MORTGAGE is dated this
March 8, 2019 and is made as a deed

 

BETWEEN:

 

		1	Borqs Technologies, Inc., a BVI business company
incorporated under the laws of the British Virgin Islands with registered number 1880410 and whose registered office is at the
offices of Maples Corporate Services Limited, Ritter House, Kingston Chambers, PO BOX 173, Road Town, Tortola, British Virgin
Islands (the Chargor);

 

		2	BORQS International Holding Corp, an exempted company limited by shares incorporated under
the laws of the Cayman Islands with registered number 192127 with its registered office at PO Box 309, Ugland House, Grand Cayman,
KY1-1104, Cayman Islands (the Company); and

 

		3	Partners for Growth V, L.P., whose address is 1751 Tiburon Blvd., Tiburon CA, 94920 (the
Chargee).

 

BACKGROUND

 

		A	The Chargor and the Company enter into this Mortgage to provide security for the continuing provision
of credit facilities to the Borrower under the Loan Documents.

 

		B	It is intended that this document takes effect as a deed notwithstanding the fact that a party
may only execute this document under hand.

 

IT IS AGREED as follows:

 

		1	Interpretation

 

		1.1	Definitions

 

In this Mortgage:

 

Borrower means
BORQS Hong Kong Limited, BORQS Technologies (HK) Limited and any other borrower under a Loan Document.

 

Business Day means
a day, other than a Saturday or a Sunday, on which banks are open for general business in the Cayman Islands, the British Virgin
Islands and the United States of America.

 

BVI Act means
the BVI Business Companies Act, 2004.

 

Companies Law
means the Companies Law (2018 Revision) of the Cayman Islands.

 

Event of Default
means any event of default under any Loan Document.

 

Initial Shares
means the 1 ordinary share of US$0.001 par value each issued by the Company and owned by the Chargor on the date of this Mortgage.

 

Lender means
the lender under a Loan Document, being Partners for Growth V, L.P.

 

Loan Document means
each of:

 

		(a)	the amended and restated loan and security agreement dated
on or about the date hereof between (i) the Chargee (ii) BORQS Hong Kong Limited and BORQS Technologies (HK) Limited as borrowers;
and (ii) the Company and BORQS Technologies, Inc. as guarantors.

 

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		(b)	any other loan and security agreement designated as such by the Chargee.

 

Mortgage means
this equitable share mortgage.

 

Obligations means
all present and future obligations and liabilities of any kind (whether actual or contingent and whether owed jointly or severally
as principal or surety or in any other capacity whatsoever) of any Obligor to any Lender under a Loan Document.

 

Obligor means
the Chargor, the Company, each Borrower and each other person providing security in connection with a Loan Document.

 

Receiver means
a receiver and manager or a receiver, in each case, appointed under this Mortgage.

 

Register of Charges
means the register of charges of the Chargor maintained by the Chargor in accordance with the BVI Act.

 

Register of Members
means the register of members of the Company maintained by the Company in accordance with the Companies Law.

 

Related Rights
means the rights attached to the Shares described in Clause 3.2(b).

 

Security Assets
means all the Shares and the Related Rights.

 

Security Interest
means any mortgage, pledge, lien, charge, assignment, hypothecation or other security interest, any pre-emption rights or options,
hold back or flawed asset arrangements or any other agreement or arrangement having a similar effect.

 

Security Period
means the period beginning on the date of this Mortgage and ending on the date on which all the Obligations have been unconditionally
and irrevocably paid and discharged in full.

 

Shares means
the Initial Shares and any other shares issued by the Company owned by the Chargor or its nominee(s) from time to time.

 

Stamp Duty Law 
means the Stamp Duty Law (2019 Revision) of the Cayman Islands.

 

Third Parties Law
means The Contracts (Rights of Third Parties) Law, 2014 of the Cayman Islands .

 

		1.2	Construction

 

		(a)	Unless otherwise defined herein, capitalised terms used
in this Mortgage have the meaning given to such terms in the Loan Document.

 

		(b)	In this Mortgage, unless the contrary intention appears, a reference to:

 

		(i)	any asset, unless the context otherwise requires,
includes any present, future or contingent asset (including properties, revenues and rights of every description) whether tangible
or intangible;

 

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		(ii)	an authorisation includes an authorisation, consent, approval, resolution, licence,
exemption, filing and registration;

 

		(iii)	a regulation includes any regulation, rule, official directive, request or guideline
(whether or not having the force of law) of any governmental body, agency, department or regulatory, self-regulatory or other authority
or organisation;

 

		(iv)	Security means the security constituted by this Mortgage;

 

		(v)	tax shall be construed so as to include any tax, fund, levy, impost, duty or other
charge of a similar nature (including, without limitation, any penalty or interest payable in connection with any failure to pay
or any delay in paying of the same);

 

		(vi)	a provision of law is a reference to that provision as amended or re-enacted;

 

		(vii)	a Clause or a Schedule is a reference to a clause of or a schedule
to this Mortgage;

 

		(viii)	a person includes its successors and assigns; and

 

		(ix)	a time of day is a reference to time in the Cayman Islands.

 

		(c)	If the Chargee considers in its sole discretion that an
amount paid to it under the Loan Documents is capable of being avoided or otherwise set aside on the liquidation or administration
of the payer or otherwise, then that amount shall not be considered to have been irrevocably paid for the purposes of this Mortgage.

 

		(d)	References to the singular include the plural, and vice versa.

 

		(e)	The index to and headings in this Mortgage are for convenience only and are to be ignored in construing
this Mortgage.

 

		1.3	Statutes

 

In this Mortgage
a reference to a statute or statutory instrument is, unless otherwise specified, a reference to the most recent revision of the
relevant statute or statutory instrument of the Cayman Islands and includes any statutory modification or re-enactment thereof
for the time being in force.

 

		2	Principal payment obligation

 

In consideration for the provision
of credit to each Borrower under the Loan Documents and for other good and valuable consideration the receipt of which is hereby
acknowledged by each party hereto, the Chargor hereby covenants with and undertakes to the Chargee to pay and discharge as principal
obligor and not merely as surety all of the Obligations as and when the same are due on the first written demand of the Chargee.

 

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		3	Creation of security

 

		3.1	General

 

The security created under
this Mortgage:

 

		(a)	is created in favour of the Chargee;

 

		(b)	is created over the Security Assets;

 

		(c)	is security for the irrevocable payment and satisfaction in full of all the Obligations; and

 

		(d)	is created by the Chargor as legal and beneficial owner.

 

The Chargee holds the
benefit of this Mortgage on trust for the Lenders.

 

		3.2	Securities

 

		(a)	The Chargor charges by way of first equitable mortgage all of its interest in all the Shares.

 

		(b)	The Chargor charges by way of first fixed charge all of its rights, title and interest including
all benefits, present and future, actual and contingent accruing in respect of:

 

		(i)	any dividend or interest paid or payable in relation to
the Shares; and

 

		(ii)	any right, money or property accruing or offered at any
time in relation to the Shares by way of redemption, repurchase, substitution, exchange, bonus or preference, under option rights
or otherwise, (the Related Rights).

 

		4	Representations

 

		4.1	Representations

 

Each of the Chargor and the
Company makes the following representations to each Lender:

 

		4.2	Status

 

		(a)	The Company is an exempted company, duly incorporated validly existing under the laws of the Cayman
Islands.

 

		(b)	The Chargor is a BVI business company, duly incorporated, validly existing under the laws of the
British Virgin Islands and has and will at all times have the necessary power and authority to own its assets and carry on its
business as it is being conducted and to enter into and perform its obligations under this Mortgage and has duly authorised the
execution and delivery of this Mortgage.

 

		(c)	It has the power to own its assets and carry on its business as it is being conducted and it is
in good standing.

 

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		4.3	Binding obligations

 

The obligations expressed to
be assumed by it in this Mortgage are its legal, valid, binding and enforceable obligations.

 

		4.4	Non-conflict with other obligations

 

The entry
into and performance by it of, and the transactions contemplated by, this Mortgage do not and will not conflict with any law or
regulation applicable to it, its constitutional documents or any agreement or instrument binding upon it or any of its assets.

 

		4.5	Power and authority

 

It has and it will at all times
have the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance
and delivery of, this Mortgage and the transactions contemplated by this Mortgage no limitation on its powers will be exceeded
by doing so.

 

		4.6	Validity and admissibility in evidence

 

Subject to the payment of stamp
duty in accordance with Clause 5.4 (Taxes), all authorisations or consents required or desirable:

 

		(a)	to enable it lawfully to enter into and exercise its rights and comply with its obligations under
this Mortgage; and

 

		(b)	to make this Mortgage admissible in evidence in the Cayman
Islands and in the British Virgin Islands, have been obtained or effected and are in full force and effect.

 

		4.7	Registration

 

		(a)	Subject to Clause 5.4 (Taxes) and Clause 5.5 (Filings and Registrations), it is not necessary or
advisable that this Mortgage be filed, registered, recorded or enrolled with any court, public office or other authority in any
jurisdiction or that any stamp, documentary, registration or similar tax or duty be paid on or in relation to this Mortgage.

 

		(b)	The execution, delivery, observance and performance of this Mortgage will not require it to obtain
any licences, consents or approvals, except any such licences, consents and approvals as have been obtained, do not conflict with
its constitutional documents and will not result in any material violation of any term of any law, statute, ordinance, rule or
regulation applicable to it, or of any judgement, decree or order applicable to it or any other agreement, instrument or obligation
to which it is a party or by which it is bound;

 

		4.8	Litigation

 

No litigation,
arbitration or administrative proceeding is current, pending or, to its knowledge, threatened which might, if adversely determined,
have a material adverse effect on the business, assets, financial condition or results of operations of it, on its ability to perform
its obligations under this Mortgage or which purport to affect the legality, validity or enforceability of this Mortgage. There
has been no failure by it to make any payment resulting from a court order or judgment.

 

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		4.9	Liquidation

 

It has not taken any corporate
action and no other steps been taken or legal proceedings been started or are (to the best of its knowledge and belief) threatened
against it for its winding-up (whether voluntary or by the courts of the Cayman Islands or the British Virgin Islands), liquidation,
dissolution, strike off, administration, reorganisation (by way of voluntary arrangement, creditors’ arrangement, scheme of arrangement
or otherwise), composition, compromise, assignment or arrangement with any creditor or for the appointment of a liquidator, provisional
liquidator, receiver, administrator, administrative receiver or other similar officer of it or any or all of its assets or revenues.

 

		4.10	Chargor Representations

 

The Chargor makes the following
representations to the Chargee.

 

		4.11	Legal and beneficial ownership

 

The Chargor
is the sole absolute legal and beneficial owner of the Security Assets, free and clear of any security, encumbrances, trusts, equities
and claims whatsoever or rights and interests in favour of third parties (save those under this Mortgage or otherwise permitted
under the Loan Document).

 

		4.12	Security

 

This Mortgage creates a first
ranking equitable mortgage over all of the Shares and a first fixed charge over the Related Rights and is not liable to be avoided
or otherwise set aside on the liquidation or administration of the Chargor or otherwise.

 

		4.13	Shares

 

		(a)	The Shares are fully paid and non-assessable.

 

		(b)	The Shares represent 100% of the shares issued by the Company.

 

		(c)	The Company has not granted any warrants, options or other analogous rights to any person relating
to shares issued by the Company.

 

		(d)	The Shares are freely transferable and no consents or approvals (including rights of pre-emption)
are required in order to register a transfer of the Shares.

 

		(e)	The directors of the Company are not entitled (other than pursuant to the Company’s memorandum
or articles of association, which entitlement is waived by the Company pursuant to Clause 6.9), to refuse to register any transfer
of Shares comprising Security Assets into the name of the Chargee or its nominee.

 

		(f)	It has not received any notice of any adverse claim by any person in respect of the ownership of
any Security Asset or any interest in it, nor has any acknowledgement been given to any person in respect of any Security Asset.

 

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		4.14	No Trigger of Event of Default

 

The execution,
delivery, observance and performance by the Chargor of this Mortgage will not constitute an event of default or trigger any enforcement
under any security in the Chargor’s assets nor will it result in the creation of any security over or in respect of the present
or future assets of the Company.

 

		4.15	Times for making representations

 

		(a)	The representations set out in this Mortgage (including in this Clause 4) are made on the date
of this Mortgage and are deemed to be repeated on each day of the Security Period.

 

		(b)	When a representation is repeated, it is applied to the circumstances existing at the time of repetition.

 

		4.16	Estoppel

 

Each of the Chargor and the
Company acknowledges and agrees that the representations in this Mortgage are made by way of deed, and that they shall be estopped
from subsequently arguing that any representation was untrue when made or repeated.

 

		5	Covenants

 

		5.1	Security

 

The Chargor shall not create
or permit to subsist any Security Interest on any Security Asset (except for this Security).

 

		5.2	Disposals

 

The Chargor shall not sell,
transfer, licence, lease or otherwise dispose of any Security Asset.

 

		5.3	No Amendment of Articles

 

Save with the prior written
consent of the Chargee, the Chargor shall not exercise its voting rights as sole shareholder of the Company to amend the memorandum
or articles of association of the Company.

 

		5.4	Taxes

 

		(a)	The Chargor will pay or procure for the stamping of an executed original of this Mortgage under
the Stamp Duty Law and deliver the same to the Chargee within 20 Business Days after the date that this Mortgage is first brought
into the Cayman Islands.

 

		(b)	The Chargor will pay or procure the payment when due of all present and future registration fees,
other stamp duties and other similar tax which is or becomes payable in relation to this Mortgage and keep the Chargee indemnified
against any failure or delay in paying them.

 

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		5.5	Filings and Registrations

 

Without limiting the provisions
of Clause 14 (Further assurances) or any other provisions of this Mortgage, the Chargor shall, immediately within 10 Business Days
after the date of this Mortgage provide a copy of its updated Register of Charges recording the particulars of this Security therein
pursuant to section 162 of the BVI Act.

 

		6	Shares

 

		6.1	Deposit

 

		(a)	The Chargor shall, on the date of this Mortgage:

 

		(i)	deliver to the Chargee an executed but undated share transfer
instrument in the form set out in SCHEDULE 2 and other documents which may be requested by the Chargee in order to enable the
Chargee or its nominees to be registered as the owner or otherwise obtain legal title to the Initial Shares; and

 

		(ii)	deliver to the Chargee copies of the corporate authorisations
of the Chargor and the Company required to authorise the execution of this Mortgage.

 

		(b)	The Chargor shall, immediately after the issue of any Shares other than the Initial Shares, comply
with sub-paragraphs (a)(ii) above in respect of such Shares.

 

		6.2	Removal of directors

 

The Chargor shall procure that
the Company delivers:

 

		(a)	signed but undated letters of resignation from the sole director of the Company in the form set
out in SCHEDULE 1, Part I; and

 

		(b)	signed and dated letters of authorisation from the sole director of the Company in the form set
out in SCHEDULE 1, Part II, to the Chargee on the date of this Mortgage and, where any person is appointed as a director of the
Company after the date of this Mortgage, immediately after such appointment.

 

		6.3	Changes to rights

 

Neither the Chargor nor the
Company shall take or allow the taking of any action on their behalf which may result in the rights attaching to any of the Security
Assets being altered or, save with the prior written consent of the Chargee, further shares in the Company in excess of the Initial
Shares being issued (including by creating any instrument convertible into shares in the Company).

 

		6.4	Payments on Shares

 

		(a)	The Chargor shall pay all calls or other payments due and payable in respect of any Shares.

 

		(b)	If the Chargor fails to do so, the Chargee may pay the calls or other payments in respect of any
Shares on behalf of the Chargor. The Chargor shall immediately on request reimburse the Chargee for any payment made by the Chargee
under this Subclause.

 

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		6.5	Other obligations in respect of Security Assets

 

		(a)	The Chargor shall comply with all conditions and obligations assumed by it in respect of the Security
Assets.

 

		(b)	The Chargee is not obliged to:

 

		(i)	perform any obligation of the Chargor;

 

		(ii)	make any payment;

 

		(iii)	make any enquiry as to the nature or sufficiency of any payment received by it or the Chargor;
or

 

		(iv)	present or file any claim or take any other action to collect
or enforce the payment of any amount to which it may be entitled under this Mortgage, in respect of any Security Asset.

 

		6.6	Voting rights

 

		(a)	Before this Security becomes enforceable, the voting rights, powers and other rights in respect
of the Security Assets may be exercised by the Chargor and shall, if exercisable by the Chargee, be exercised in any manner which
the Chargor may direct in writing.

 

		(b)	The Chargor shall indemnify the Chargee against any loss or liability incurred by the Chargee as
a consequence of the Chargee acting in respect of the Security Assets as permitted by this Mortgage or on the direction of the
Chargor.

 

		(c)	After this Security has become enforceable, the Chargee may exercise (in the name of the Chargor
and without any further consent or authority on the part of the Chargor) any voting rights and any powers or rights which may be
exercised by the legal or beneficial owner of any Security Asset.

 

		6.7	Dividends

 

		(a)	Before this Security becomes enforceable, the Chargor shall be entitled to receive and retain all
cash dividends, interest and any other monies paid to it in respect of any Security Assets.

 

		(b)	Upon or at any time after this Security has become enforceable, all dividends, interest and other
monies arising from the Security Assets shall be paid to the Chargee or to such account as it shall direct for application at its
discretion.

 

		6.8	Turnover

 

		(a)	If the Chargor or the Company receives or recovers any amount which, under the terms of this Mortgage,
should have been paid to the Chargee, it will:

 

		(i)	hold an amount of that receipt or recovery equal to the
Obligations (or if less, the amount received or recovered) on trust for the Chargee and promptly pay that amount to the Chargee
for application in accordance with the terms of this Mortgage; and

 

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		(ii)	promptly pay an amount equal to the amount (if any) by
which the receipt or recovery exceeds the Obligations to the Chargee for application in accordance with the terms of this Mortgage.

 

		(b)	If, for any reason, any of the trusts expressed to be created in this Clause should fail or be
unenforceable, the Chargor or the Company, as the case may be, will promptly pay or distribute an amount equal to that receipt
or recovery to the Chargee to be held on trust by the Chargee for application in accordance with the terms of this Mortgage.

 

		6.9	Company obligations

 

The Company:

 

		(a)	irrevocably waives:

 

		(i)	any first and paramount lien; and

 

		(ii)	any rights of forfeiture,

 

which it may have, now or in
the future, under its constitutional documents (including but not limited to under articles 4 and 5 of its articles of association),
in relation to the Security Assets;

 

		(b)	irrevocably consents to the transfer of the Shares pursuant to the enforcement by the Chargee of
any of its rights under this Mortgage and undertakes not to exercise its discretion to refuse to register the transfer of any Share
pursuant to article 6.2 of its articles of association or to suspend registration under article 6.4 of its articles of association;
and

 

		(c)	shall not register the transfer of any Share to any other person without the prior written consent
of the Chargee.

 

		6.10	Register of Members

 

The Company shall:

 

		(a)	Within 10 Business Days after the date of this Mortgage, provide the Chargee with a certified copy
of the Register of Members containing the following annotation:

 

“All the ordinary shares
issued as fully paid up and registered in the name of Borqs Technologies, Inc. are mortgaged and charged in favour of Partners
for Growth V, L.P. pursuant to a share mortgage dated __, 2019, as amended from time to time”.

 

		(b)	promptly register any transfer of title to the Shares pursuant to any enforcement by the Chargee
of its rights under this Mortgage.

 

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		6.11	Legal Mortgage

 

At the request of the Chargee
at any time prior to or after the occurrence of an Event of Default the Chargor shall promptly cause the Security Assets or any
part of them to be registered in the name of the Chargee (or its nominee) thereupon to be held, as so registered, subject to the
terms of this Mortgage.

 

		7	When security becomes enforceable

 

		7.1	Event of Default

 

Subject to the terms of the
Subordination Agreement, this Security will become immediately enforceable if an Event of Default occurs and is continuing.

 

		7.2	Discretion

 

After this Security has become
enforceable, the Chargee may in its absolute discretion enforce all or any part of this Security in any manner it sees fit including,
without limitation, dating and presenting to the Company or any other person any undated documents provided to it pursuant to Clauses
6.1 (Deposit) and 6.2 (Removal of directors) or any other provision of this Mortgage, including to remove the then existing directors
and officers (with or without cause) by dating and presenting the undated, signed letters of resignation delivered pursuant to
this Mortgage to appoint such persons as directors of the Company as it shall deem appropriate.

 

		8	Enforcement of security

 

		8.1	No liability as mortgagee in possession

 

Neither the Chargee nor any
Receiver will be liable, by reason of entering into possession of a Security Asset, to account as mortgagee in possession or for
any loss on realisation or for any default or omission for which a mortgagee in possession might be liable.

 

		8.2	Protection of third parties

 

No person (including a purchaser)
dealing with the Chargee or a Receiver or its or his agents will be concerned to enquire:

 

		(a)	whether the Obligations have become payable;

 

		(b)	whether any power which the Chargee or a Receiver is purporting to exercise has become exercisable
or is being properly exercised;

 

		(c)	whether any money remains due under the Loan Documents; or

 

		(d)	how any money paid to the Chargee or to that Receiver is to be applied.

 

		8.3	Redemption of prior mortgages

 

		(a)	At any time after this Security has become enforceable, the Chargee may:

 

		(i)	redeem any prior Security Interest against any Security
Asset; and/or

 

		(ii)	procure the transfer of that Security Interest to itself;
and/or

 

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		(iii)	settle and pass the accounts of the prior mortgagee, chargee
or encumbrancer; any accounts so settled and passed will be, in the absence of manifest error, conclusive and binding on the Chargor.

 

		(b)	The Chargor shall pay to the Chargee, immediately on demand, the costs and expenses incurred by
the Chargee in connection with any such redemption and/or transfer, including the payment of any principal or interest.

 

		8.4	Contingencies

 

If this Security is enforced
at a time when no amount is due under the Loan Documents but at a time when amounts may or will become due, the Chargee may pay
the proceeds of any recoveries effected by it into a suspense account or other account selected by it.

 

		9	Receiver

 

		9.1	Appointment of Receiver

 

		(a)	The Chargee may appoint any one or more persons to be a Receiver of all or any part of the Security
Assets if this Security has become enforceable.

 

		(b)	Any appointment under paragraph (a) above may be by deed, under seal or in writing under its hand.

 

		9.2	Removal

 

The Chargee may remove any
Receiver appointed by it and may, whenever it thinks fit, appoint a new Receiver in the place of any Receiver whose appointment
may for any reason have terminated.

 

		9.3	Remuneration

 

The Chargee may fix the remuneration
of any Receiver appointed by it.

 

		9.4	Agent of the Chargor

 

		(a)	A Receiver will be deemed to be the agent of the Chargor for all purposes. The Chargor alone is
responsible for the contracts, engagements, acts, omissions, defaults and losses of a Receiver and for liabilities incurred by
a Receiver.

 

		(b)	No Lender will incur any liability (either to the Chargor or to any other person) by reason of
the appointment of a Receiver or for any other reason.

 

		9.5	Exercise of Receiver powers by the Chargee

 

To the fullest extent allowed
by law, any right, power or discretion conferred by this Mortgage (either expressly or impliedly) or by law on a Receiver may after
this Security becomes enforceable be exercised by the Chargee in relation to any Security Asset without first appointing a Receiver
and notwithstanding the appointment of a Receiver.

 

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		10	Powers of receiver

 

		10.1	General

 

		(a)	A Receiver has all of the rights, powers and discretions set out below in this Clause.

 

		(b)	If there is more than one Receiver holding office at the same time, each Receiver may (unless the
document appointing him states otherwise) exercise all of the powers conferred on a Receiver under this Mortgage individually and
to the exclusion of any other Receiver.

 

		10.2	Possession

 

A Receiver may take immediate
possession of, get in and collect any Security Asset.

 

		10.3	Employees

 

		(a)	A Receiver may appoint and discharge managers, officers, agents, accountants, servants, workmen
and others for the purposes of this Mortgage upon such terms as to remuneration or otherwise as he thinks fit.

 

		(b)	A Receiver may discharge any person appointed by the Chargor.

 

		10.4	Borrow money

 

A Receiver may raise and borrow
money either unsecured or on the security of any Security Asset either in priority to this Security or otherwise and generally
on any terms and for whatever purpose which he thinks fit.

 

		10.5	Sale of assets

 

		(a)	A Receiver may sell, exchange, convert into money and realise any Security Asset by public auction
or private contract and generally in any manner and on any terms which he thinks fit.

 

		(b)	The consideration for any such transaction may consist of cash, debentures or other obligations,
shares, stock or other valuable consideration and any such consideration may be payable in a lump sum or by instalments spread
over any period which he thinks fit.

 

		10.6	Compromise

 

A Receiver may settle, adjust,
refer to arbitration, compromise and arrange any claim, account, dispute, question or demand with or by any person who is or claims
to be a creditor of the Chargor or relating in any way to any Security Asset.

 

		10.7	Legal actions

 

A Receiver may bring, prosecute,
enforce, defend and abandon any action, suit or proceedings in relation to any Security Asset which he thinks fit.

 

    13

     

    

 

		10.8	Receipts

 

A Receiver may give a valid
receipt for any moneys and execute any assurance or thing which may be proper or desirable for realising any Security Asset.

 

		10.9	Delegation

 

A Receiver may delegate his
powers in accordance with this Mortgage.

 

		10.10	Other powers

 

A Receiver may:

 

		(a)	do all other acts and things which he may consider desirable or necessary for realising any Security
Asset or incidental or conducive to any of the rights, powers or discretions conferred on a Receiver under or by virtue of this
Mortgage or law;

 

		(b)	exercise in relation to any Security Asset all the powers, authorities and things which he would
be capable of exercising if he were the absolute beneficial owner of that Security Asset; and

 

		(c)	use the name of the Chargor for any of the above purposes.

 

		11	Application of proceeds

 

Any moneys received by the
Chargee or any Receiver after this Security has become enforceable shall be applied in or towards payment of or provision for all
costs and expenses incurred by the Chargee or any Receiver under or in connection with this Mortgage and of all remuneration due
to any Receiver under or in connection with this Mortgage and thereafter at the discretion of the Chargee. Following the payment
and discharge of the Obligations in full the surplus (if any) will be paid to the Chargor. This Clause is subject to the payment
of any claims having priority over this Security. This Clause does not prejudice the right of any Lender to recover any shortfall
from the Chargor.

 

		12	Expenses and indemnity

 

The Chargor shall:

 

		(a)	immediately on demand pay all costs and expenses (including legal fees) incurred in connection
with this Mortgage by any Lender or any Receiver, attorney, manager, agent or other person appointed by the Chargee under this
Mortgage including any arising from any actual or alleged breach by any person of any law or regulation, whether relating to the
environment or otherwise; and

 

		(b)	keep each of them indemnified against any failure or delay in paying those costs or expenses.

 

		13	Delegation

 

		13.1	Power of Attorney

 

The Chargee or any Receiver
may delegate by power of attorney or in any other manner to any person any right, power or discretion exercisable by it under this
Mortgage.

 

    14

     

    

 

		13.2	Terms

 

Any such delegation may be
made upon any terms (including power to sub-delegate) which the Chargee or any Receiver may think fit.

 

		13.3	Liability

 

Neither the Chargee nor any
Receiver will be in any way liable or responsible to the Chargor or the Company for any loss or liability arising from any act,
default, omission or misconduct on the part of any delegate or sub-delegate.

 

		14	Further assurances

 

The Chargor shall, at its own
expense, take whatever action the Chargee or a Receiver may require for:

 

		(a)	creating, perfecting or protecting any security intended to be created by this Mortgage; or

 

		(b)	facilitating the realisation of any Security Asset, or the exercise of any right, power or discretion
exercisable, by the Chargee or any Receiver or any of its delegates or sub delegates in respect of any Security Asset.

 

This includes:

 

		(i)	the execution of any transfer, conveyance, assignment or
assurance of any property, whether to the Chargee or to its nominee; or

 

		(ii)	the giving of any notice, order or direction and the making
of any registration, which, in any such case, the Chargee may think expedient.

 

		15	Power of attorney

 

		15.1	Appointment

 

The
Chargor hereby irrevocably appoints the Chargee and any Receiver appointed hereunder (in each case with full power to appoint substitutes
and to sub-delegate) jointly and also severally to be the attorney or attorneys of the Chargor and in its name and otherwise on
its behalf to sign, seal, execute, deliver, perfect and do all deeds, instruments, acts and things which may be required (or which
the Chargee or any Receiver appointed hereunder shall consider desirable) for carrying out any obligation imposed on the Chargor
by or pursuant to this Mortgage, for getting in the Security Assets, and generally for enabling the Chargee and the Receiver to
exercise the respective powers conferred on them by or pursuant to this Mortgage or by law.

 

		15.2	Ratification

 

The
Chargor shall ratify and confirm all transactions and documents entered into by the Chargee or such Receiver or delegate of the
Chargee or such Receiver acting under the power of attorney granted under Clause 15.1.

 

    15

     

    

 

		15.3	Irrevocable

 

The
power of attorney granted under Clause 15.1 is granted irrevocably and for value as part of the security constituted by this Mortgage
to secure proprietary interests of, and the performance of obligations owed to, the Chargee.

 

		16	Preservation

 

		16.1	Continuing security

 

		(a)	This Security is continuing and will extend to the ultimate balance of all the Obligations, regardless
of any intermediate payment or discharge in whole or in part.

 

		(b)	This Security is in addition to and shall not merge with or otherwise prejudice or affect any other
security now or subsequently held by the Chargee for any of the Obligations.

 

		16.2	Tacking

 

This Mortgage is made to secure
any further advances or other facilities made available by the Lenders under the Loan Documents.

 

		16.3	New Accounts

 

		(a)	If any subsequent charge or other interest affects any Security Asset, the Chargee may open a new
account for the Chargor.

 

		(b)	If the Chargee does not open a new account, it will nevertheless be treated as if it had done so
at the time when it received or was deemed to have received notice of that charge or other account.

 

		(c)	As from that time all payments made to the Chargee will be credited or be treated as having been
credited to the new account and will not operate to reduce any Secured Liability.

 

		16.4	Waiver of defences

 

The obligations of the Chargor
and the Company under this Mortgage will not be affected by any circumstance, act, omission, matter or thing which, but for this
Clause, would reduce, release or prejudice any of their obligations under this Mortgage and this Security and whether or not known
to the Chargor, the Company or a Lender including:

 

		(a)	any time, waiver or consent granted to, or composition with, an Obligor or other person;

 

		(b)	the release of an Obligor or any other person under the terms of any composition or arrangement
with any creditor or an Obligor;

 

		(c)	the taking, variation, compromise, exchange, renewal or release of, refusal or neglect to perfect,
take up or enforce, any rights against, or Security Interest or other rights over or relating to assets of, an Obligor or other
person or any non-presentment or non-observance of any formality or other requirement in respect of any instruments or any failure
to realise the full value of any Security Interest;

 

    16

     

    

 

		(d)	any incapacity or lack of powers, authority or legal personality of or dissolution or change in
the members or status of, an Obligor or other person;

 

		(e)	any amendment (however fundamental) or replacement of any Loan Document or other document;

 

		(f)	any change in the identity of the Chargee;

 

		(g)	any right of set-off that the Chargor or the Company may have against the Chargee;

 

		(h)	any unenforceability, illegality or invalidity or any obligation of any person under any Loan Document
or other document; or

 

		(i)	any insolvency or similar proceedings.

 

		16.5	Immediate recourse

 

The Chargor waives any right
it may have of first requiring a Lender to proceed against or enforce any other rights or Security Interest or claim payment from
or file any proof or claim in any insolvency, administration, winding up or liquidation proceedings relating to any Obligor or
any other person before claiming from the Chargor under this Mortgage.

 

		16.6	Non-competition

 

Until the end of the Security
Period, neither the Chargor nor the Company will exercise any rights which they may have by reason of performance of their obligations
under this Mortgage:

 

		(a)	to be indemnified by an Obligor;

 

		(b)	to claim any contribution from any guarantor of an Obligor’s obligations; and/or

 

		(c)	to take the benefit of (in whole or in part and whether by subrogation or otherwise) of any right
of a Lender under this Mortgage or of any other guarantee or Security Interest taken pursuant to, or in connection with, the Loan
Document by the any Lender.

 

		16.7	Reinstatement

 

		(a)	Where any discharge (whether in respect of the obligations of any Obligor, any security for such
obligations or otherwise) is made in whole or in part or any arrangement is made on the faith of any payment, security or other
disposition which is avoided or must be repaid on insolvency, administration, liquidation or otherwise without limitation, the
liability of the Chargor or the Compny under this Mortgage shall continue as if there had been no such discharge or arrangement.

 

		(b)	The Chargee shall be entitled to concede or compromise any claim that any such payment, security
or other disposition is liable to avoidance or repayment.

 

		17	Miscellaneous

 

		17.1	Waivers and remedies cumulative

 

		(a)	The rights of the Chargee under this Mortgage:

 

    17

     

    

 

		(i)	may be exercised as often as necessary;

 

		(ii)	are cumulative and not exclusive of its rights under general
law; and

 

		(iii)	may be waived only in writing and specifically.

 

		(b)	Delay in exercising or non-exercise of any such right is not a waiver of that right.

 

		17.2	Transfers

 

		(a)	Neither the Chargor nor the Company may assign or otherwise transfer any of their rights and/or
obligations under this Mortgage.

 

		(b)	The Chargee may assign, transfer, novate or dispose of all or any part of its rights and/or obligations
under this Mortgage.

 

		17.3	Severability

 

If a provision of this Mortgage
is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect:

 

		(a)	the validity or enforceability in that jurisdiction of any other provision of this Mortgage; or

 

		(b)	the validity or enforceability in any other jurisdiction of that or any other provision of this
Mortgage.

 

		17.4	Amendments

 

This Mortgage may only be amended
by an instrument in writing signed by each party to this Mortgage.

 

		17.5	Waiver

 

		(a)	No waiver of any right or rights arising under this Mortgage shall be effective unless such waiver
is in writing and signed by the party whose rights are being waived.

 

		(b)	No waiver by a party of a failure by the other party to perform any provision of this Mortgage
shall operate or be construed as a waiver in respect of any other failure whether of a like or different character.

 

		17.6	Counterparts

 

This Mortgage may be executed
in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this
Mortgage.

 

		17.7	Certificate

 

A certificate of the Chargee
as to any amount due from an Obligor in respect of the Obligations or any of them shall, in the absence of manifest error, be prima
facie evidence of such amount as against the Chargor or the Company.

 

    18

     

    

 

		17.8	Language

 

All documents and notices provided
or given in connection with this Mortgage shall be:

 

		(a)	in English; or

 

		(b)	if not in English, accompanied by a certified English translation and, in this case, the English
translation shall prevail unless the document is a statutory or other official document.

 

		17.9	Payments

 

All payments made by the Chargor
and the Company under this Mortgage shall be made free of any deductions or withholding (whether in respect of tax or otherwise).
If the Chargor or the Company is compelled by law to make such deductions, it shall pay such additional amounts as to ensure that
the net amount received by the Chargee would be the same as if no such deductions had been made.

 

		18	Notices

 

Each party’s address
for notices is as set out below:

 

Chargor

Borqs Technologies, Inc.

Tower A, Building B23

Universal Business Park

No. 10 Jiuxiangqiao Road

Chaoyang District, Beijing
100015, China

Attn: Pat Chan, CEO

Facsimile No.: 86-10-5975-6363

Telephone No: 86-10-5975-6336

Email: pat.chan@borqs.com

 

Company

Borqs International Holding
Corp.

Tower A, Building B23

Universal Business Park

No. 10 Jiuxiangqiao Road

Chaoyang District, Beijing
100015, China

Attn: Pat Chan, CEO

Facsimile No.: 86-10-5975-6363

Telephone No: 86-10-5975-6336

Email: pat.chan@borqs.com

 

AND TO :

 

Borqs International Holding
Corp.

c/o Maples Corporate Services
Limited

PO Box 309

Ugland House

Grand Cayman, KY1-1104

Cayman Islands

 

    19

     

    

 

Chargee

Partners for Growth V, L.P.

Address: 1751 Tiburon Blvd.,
Tiburon, CA 94920

Facsimile no: +1-415-781-0510

Electronic mail address:
notices@pfgrowth.com

For the attention of: Geoff
Allen / Tracy Pappas

 

With a copy (not constituting
notice) to:

 

Greenspan Law Office

620 Laguna Rd, Mill Valley,
CA 94941

Email: ben@greenspan-law.com

 

		19	Release

 

At the end of the Security
Period, the Chargee shall, at the request and cost of the Chargor, take whatever action is necessary to release the Security Assets
from this Security.

 

		20	Set off

 

A Lender may set off any matured
obligation due from the Chargor or the Company under this Mortgage (to the extent beneficially owned by that Lender) against any
matured obligation owed by that Lender to the Chargor or the Company, regardless of the place of payment, booking branch or currency
of either obligation. If the obligations are in different currencies, the Lender may convert either obligation at a market rate
of exchange in its usual course of business for the purpose of the set-off.

 

		21	Third Party Rights

 

		(a)	Subject to paragraph (b), a person who is not a party to this Mortgage has no right under the Third
Parties Law to enforce any provision of this Mortgage in its own right.

 

		(b)	A Receiver may enforce any provision of this Mortgage conferring a right on it.

 

		22	Jurisdiction

 

		22.1	Submission

 

For the benefit of the Lenders,
the Chargor and the Company each agree that the courts of the Cayman Islands have jurisdiction to hear and determine any action,
suit or proceeding, and settle any disputes, in connection with this Mortgage and accordingly submit to the jurisdiction of the
Cayman Islands courts.

 

		22.2	Forum convenience and enforcement abroad

 

Each of the Chargor and the
Company:

 

		(a)	waive any objection which they may have to the Cayman Islands courts on the grounds of inconvenient
forum or otherwise as regards proceedings in connection with this Mortgage, and agree not to argue before any court or tribunal
that such courts are an inappropriate or inconvenient forum; and

 

    20

     

    

 

		(b)	agree that a judgment or order of such courts in connection with this is conclusive and binding
on each of them and may be enforced in the courts of any other jurisdiction.

 

		22.3	Non-exclusivity

 

Nothing in this Clause 21 limits
the right of the Chargee to bring proceedings against the the Chargor or the Company in connection with this Mortgage or the Obligations:

 

		(a)	in any other court of competent jurisdiction; or

 

		(b)	concurrently in more than one jurisdiction, to the extent permitted by law.

 

		22.4	Agent for Service of Process

 

Without prejudice to the Chargee’s
rights to serve notice in any other manner permitted by law, the Chargor hereby irrevocably appoints the Company as its agent for
service of process in relation to any proceedings before the Cayman Islands courts in connection with this Mortgage and agrees
that failure by the Company to notify the Chargor shall not invalidate any proceedings concerned.

 

		22.5	Security for costs

 

To the extent that the Chargor
or the Company may, in any suit, action or proceeding brought in a court in any jurisdiction arising out of or in connection with
this Mortgage or the Obligations be entitled to the benefit of any provision of law requiring any Lender in such suit, action or
proceeding to post security for the costs of the Chargor or the Company, or to post a bond or take similar action, the Chargor
or the Company hereby irrevocably waive any such benefit, in each case to the fullest extent now or hereafter permitted under the
laws of such jurisdiction.

 

		23	Governing law

 

		23.1	This Mortgage is governed
by Cayman Islands law.

 

		23.2	The Chargor irrevocably
agrees for the exclusive benefit of the Chargee that the courts of the Cayman Islands shall have jurisdiction to hear and determine
any suit, action or proceeding and to settle any dispute which may arise out of or in connection with this Mortgage and for such
purposes irrevocably submits to the jurisdiction of such courts.

 

		23.3	Nothing contained in
this Clause shall limit the right of the Chargee to take proceedings which may arise out of or in connection with this Mortgage
in any other court of competent jurisdiction nor shall the taking of any such proceedings in one or more jurisdictions preclude
the taking of proceedings in any other jurisdiction whether concurrently or not (unless precluded by applicable law).

 

This Mortgage has been entered into on
the date stated on the first page of this Mortgage.

 

    21

     

    

SCHEDULE
1

 

Part I - Form of Directors’ Letter
of Resignation

 

Date: _____________________________________P.O.
Box 309, Ugland House, Grand Cayman, KY1-1104

 

For the attention of the Board of Directors
of the Company

 

Dear Sirs

 

Resignation as a director of BORQS International
Holding Corp (the Company)

 

I hereby resign with immediate effect as
a director of the Company.

 

I confirm that I have no claims against
the Company for compensation in relation to my loss of office or otherwise, but to the extent that I may have any such claim, I
hereby irrevocably waive the same.

 

Yours faithfully

 

	 	 
	Pat Sek Yuen Chan	 

 

    22

     

    

 

Part II - Form of Directors’ Letter
of Authority

 

Date: ______________________

 

Partners for Growth V, L.P. (the Chargee)

1751 Tiburon Blvd.,

Tiburon, CA 94920

For the attention of: Geoff Allen / Tracy
Pappas

 

Dear Sir

 

Resignation letter - directorship of
Borqs International Holdings Corp (the Company)

 

Please find enclosed a signed but undated
letter from me resigning my position as a director of the Company.

 

I hereby irrevocably authorise you, whenever
an Event of Default has occurred and is continuing for the purpose of the equitable share mortgage dated __------------------,
2019 made between the Chargor, the Company and the Chargee (the Mortgage), to date the letter and send it to the
Company’s registered office thereby terminating my directorship of the Company without compensation for loss of office. I
acknowledge and agree that your discretion to act in this regard is to be exercised solely in your interests as Chargee under the
Mortgage.

 

I confirm that you may delegate the authority
conferred by this letter to any of your successors and assigns as Chargee in relation to the Mortgage.

 

Yours faithfully

 

	 	 
	Pat Sek Yuen Chan	 

 

    23

     

    

 

SCHEDULE
2

 

Form of Share Transfer

 

BORQS International Holding Corp

(the Company)

 

SHARE TRANSFER

 

We, Borqs Technologies, Inc. (the
Transferor), for good and valuable consideration received by us from _______________________ (the Transferee),
do hereby:

 

		(1)	transfer to the Transferee _________ shares of US$0.001
par value each standing in our name in the Register of Members of the Company, free of any liens, encumbrances or other restrictions
thereon; and

 

		(2)	consent that our name remains on the Register of Members
of the Company until such time as the Company enters the Transferee’s name in the Register of Members of the Company.

 

This Share Transfer is governed by Cayman
Islands law.

 

 

	 	 
	SIGNED BY	 

 

Name: Pat Sek Yuen Chan

A duly authorised director acting for and
on behalf of

Borqs Technologies, Inc.

 

    24

     

    

 

EXECUTION PAGE

 

The parties have executed and this Deed
on the day and year first above written

 

	Chargor	 	 
	 	 	 
	EXECUTED and DELIVERED as a deed by 	)	 
	Borqs Technologies, Inc.	)	/s/ Pat Sek Yuen
Chan
	acting by its duly authorised director	)	(Director)

In the presence of:

 

	/s/ Anthony K. Chan	 

 

Name of Witness: Anthony K. Chan

 

Address of Witness:

 

Company

 

	EXECUTED and DELIVERED as a deed by 	)	 
	BORQS International Holding Corp	)	/s/ Pat Sek Yuen
Chan
	acting by its duly authorised director	)	(Director)

 

	Chargee	 	 
	 	 	 
	EXECUTED and DELIVERED as a deed by 	)	 
	Partners for Growth V, L.P.	)	/s/ Geoffrey Allan
	acting by its duly authorised signatory	)	Authorised Signatory

In the presence of:

 

	/s/ Amy Spencer	 

 

Name of Witness: Amy Spencer

 

Address of Witness:

 

 

25Exhibit 10.7

 

SHARE PLEDGE AGREEMENT

 

THIS SHARE PLEDGE AGREEMENT
(“Agreement”) is made as of March 8, 2019 (the “Effective Date”), by each of BORQS
Hong Kong Limited, a private company limited by shares under Hong Kong law, registered with the Companies Registry under number
1151010, with its address as of the Effective Date at Office B, 21/F, Legend Tower, 7 Shing Yip Street, Kwun Tong, Kowloon, Hong
Kong (“HK Debtor”), and BORQS International Holding Corp, an exempted company limited by shares incorporated
under the laws of the Cayman Islands with registered number 192127, with its registered address at PO Box 309, Ugland House, Grand
Cayman, KY1-1104, Cayman Islands (“Cayman Debtor” and, collectively with HK Debtor, “Debtor”),
and Debtor’s subsidiary, BORQS Software Solutions Private Limited, a company formed under the laws of India with company
registration number U72200KA2009PTC050460 and with its principal place of business at Prestige Al-Kareem, NO.3 Edward Road, Civil
Station, Corporation Division NO.72, Bangalore, Karnataka, INDIA 560052 (“Subsidiary”), in favor of Partners
for Growth V, L.P., a Delaware limited partnership with its principal place of business at the date hereof at 1751 Tiburon Blvd.,
Tiburon, CA 94920 (“Lender”) in respect Debtor’s Ownership Interests (as defined herein) in Subsidiary.

 

RECITALS

 

A. Lender
proposes to make certain loans to HK Debtor that are guaranteed (inter alia) by Cayman Debtor pursuant to that certain Amended
and Restated Loan and Security Agreement of even date herewith between Debtor and Lender (the “Loan Agreement”)
for the direct benefit of Debtor and the direct and indirect benefit of each of Debtor’s parent entities and subsidiaries,
including the Subsidiary, which receives direct financial support from HK Debtor and Cayman Debtor, including from proceeds of
such loans.

 

B. To
secure the “Obligations”, as defined in the Loan Agreement, Debtor has agreed, subject to receipt of necessary regulatory
approvals in accordance with the laws of India, to pledge to Lender the shares in Subsidiary’s equity, voting or non-voting,
however expressed or denominated, and all other equity interests of each Subsidiary which Debtor now legally and beneficially owns,
directly or indirectly, as initially specified in Exhibit A, or hereafter acquires an interest (the “Ownership
Interests”).

 

C. Concurrently,
Lender and Debtor are entering into a Custody Agreement with respect to Ownership Interests Debtor owns in the India Subsidiary.
Any capitalized terms used without definition herein shall have the meanings assigned to them in the Loan Agreement.

 

NOW, THEREFORE, in consideration
of the foregoing premises and intending to be legally bound thereby, Debtor hereby agrees as follows:

 

1. Pledge
of Collateral. To secure the prompt performance of Debtor’s Obligations (as defined in the Loan Agreement), and Debtor’s
obligations hereunder, expressly subject to Section 12(g) of this Agreement, Debtor hereby transfers, assigns and pledges to Lender
and grants Lender a security interest in and to (a) 100% of its Ownership Interests in all the Subsidiary (the “Pledged
Interests”), (b) all cash, property, share dividends, share splits, securities, proceeds, and other property paid, distributed
or distributable with respect to or received on account of the Pledged Interests, and (c) except as otherwise provided in this
Agreement, all rights and privileges of Debtor with respect to each of the foregoing (collectively, the “Pledged Collateral”).

 

     

     

    

 

2. Certification
of Ownership Interests; Delivery of the Pledged Interests. Debtor shall procure that, to the extent not prohibited by applicable
law, all Ownership Interests shall be certificated and reflected in the books and records of Subsidiary, including any registers
of members or shareholders required to be maintained by Subsidiary, its corporate agents, or filed with any Governmental Body.
Upon demand by Lender, Debtor shall deliver to Lender (i) share certificates, certified ownership registers or such other legal
evidence of ownership as is customary and legally sufficient in India, together with, as applicable under Applicable Law (ii) an
Irrevocable Stock Power, instrument of transfer, registration of transfer or other legally sufficient evidence of the transfer
of the Pledged Interests to Lender as security hereunder, in the forms set forth as Exhibit B to be held by Lender subject
to the terms and conditions of this Agreement, provided, however, with respect to share certificates representing
Ownership Interests in the Subsidiary, Debtor shall deliver such certificates to the Custodian (and such delivery shall be deemed
to discharge Debtor’s certificate delivery obligations hereunder to Lender unless Lender otherwise so notifies Debtor in
writing. Notwithstanding any registration of the Pledged Interests in the name of Lender, Lender holds the Pledged Interests only
as security for the Obligations as described herein unless Lender acquires the Pledged Interests pursuant to Section 12 of this
Agreement. Debtor shall, and Debtor shall procure that each of its Subsidiaries, duly records the pledge of the Pledged Interests
to Lender in its books and records.

 

3. Warrants,
Rights and Share Adjustments. 

 

(a) In
the event that, during the term of this Agreement, subscription warrants or other rights or options shall be issued in respect
of the Pledged Interests, such rights, warrants and options shall be the property of Debtor and part of the Pledged Collateral
and, if exercised by Debtor, all new stock or other securities so acquired by Debtor as they relate to the Pledged Interests then
held by Debtor shall be promptly delivered to Lender (or the Custodian, as the case may be) and shall be deemed to be included
within the definition of “Pledged Interests”, to be held under the terms of this Agreement in the same manner as the
Pledged Interests.

 

(b) In
the event that, during the term of this Agreement, any share dividend, reclassification, readjustment or other changes are declared
or made in Subsidiary or additional shares of Subsidiary is issued to Debtor, all new, substituted and additional Ownership Interests
issued by reason of any such change shall be delivered to and held by Lender or recorded under the name of Lender under the terms
of this Agreement in the same manner as the Pledged Interests. In the event of substitution of such securities, Debtor and Lender
shall cooperate and execute such documents as are reasonable so as to provide for the substitution of such Pledged Collateral and,
upon such substitution, references to “Pledged Interests” in this Agreement shall be deemed to include the substituted
Ownership Interests of each Subsidiary held by Debtor as a result thereof.

 

(c) In
the in the event of any consolidation or merger involving Subsidiary and in which such Subsidiary is not the surviving Person,
the Ownership Interests of the successor Person formed by or resulting from such consolidation or merger shall be promptly delivered
to Lender and shall be deemed to be included within the definition of “Pledged Interests,” to be held under the terms
of this Agreement in the same manner as the Pledged Interests.

 

    2

     

    

 

4. Limitations
on Lender’s Obligations. It is expressly agreed by Debtor that, anything herein to the contrary notwithstanding, Lender
shall have no obligation or liability for the performance by Debtor of its rights or obligations as a shareholder of Subsidiary
by reason of or arising out of this Agreement or the granting to Lender of the security interests provided for herein or the receipt
by Lender of any payment relating hereto, nor shall Lender be required or obligated in any manner to perform or fulfill any of
the rights or obligations of Debtor in its capacity as a shareholder of Subsidiary or to make any inquiry as to the nature or the
sufficiency of any payment received by it or the sufficiency of any performance by any other party of any obligation owed to Subsidiary,
or to present or file any claim, or to take any action to collect or enforce any performance or the payment of any amounts which
may have been assigned to it or to which it may be entitled at any time or times. Lender’s sole duty with respect to the
custody, safekeeping and physical preservation of the Pledged Collateral in its possession shall be to deal with it in the same
manner as Lender deals with similar securities and property for its own account. Neither Lender nor any of its directors, officers,
employees or agents shall be liable for failure to demand, collect or realize upon any of the Pledged Collateral or for any delay
in doing so or shall be under any obligation to sell or otherwise dispose of any Pledged Collateral upon the request of Debtor
or otherwise, provided that Lender shall be liable for the gross negligence and willful misconduct of its directors, officers,
employees and agents.

 

5. Representations,
Warranties and Covenants. Debtor represents, warrants to and covenants with Lender that on the Effective Date and at all times
any Obligations are outstanding: (a) Debtor has full power and authority to enter into this Agreement; (b) any consent or approval
which is required as a condition to the validity of this Agreement has or will been obtained; (c) this Agreement constitutes the
valid and legally binding agreement of Debtor in accordance with its terms (except as enforcement may be limited by equitable principles
and by bankruptcy, insolvency, reorganization, moratorium and similar laws relating to creditors’ rights generally) and does
not constitute a prohibited transfer under any law, statute, regulation or ordinance, including the Securities Act of 1933, as
amended or other applicable securities Legal Requirement of any other jurisdiction applicable to Debtor or Subsidiary; (d) there
is no provision of (i) any existing material mortgage, indenture, contract, subscription agreement or other agreement binding on
Debtor or affecting the Ownership Interests or (ii) any Legal Requirement applicable to Debtor or Subsidiary which would materially
conflict with or in any way prevent the execution, delivery or performance of the terms of this Agreement, except for any such
provision which has been expressly waived or with respect to which consent has been given; (e) Debtor has good title to the Pledged
Collateral and the Pledged Collateral is owned free and clear of liens and encumbrances, other than the lien created in favor of
Lender under the Loan Agreement and other Permitted Liens (as defined in the Loan Agreement; (f) there are no proceedings pending
or, to Debtor’s knowledge, threatened before any court or administrative agency which, in the reasonable opinion of Debtor,
will materially adversely affect the authority of Debtor to enter into, or the validity or enforceability of, this Agreement; (g)
Debtor will not create, incur, assume or suffer to exist any material mortgage, pledge, lien or other encumbrance of any kind,
or any security interest in any of the Pledged Collateral now owned or hereafter acquired, other than Permitted Liens, without
the prior written consent of Lender; (h) the share certificates for the shares of Subsidiary are the only certificates for such
shares and Debtor does not hold and has not applied to Subsidiary for, duplicate stock certificates with respect to the said shares;
and (i) the Pledged Interests are fully paid up and Subsidiary has no lien and will not have any lien on the Pledged Interests
for so long as any Obligations remain outstanding or unperfomed.

 

6. Other
Documents. Debtor will execute and deliver to Lender and, where required in order to effect Lender’s rights under this
Agreement, will cause each Subsidiary to execute, deliver to and procure for Lender, all assignments, endorsements, powers, hypothecations,
approvals, governmental registrations, consents and other documents reasonably required at any time and from time to time by Lender
to perfect and maintain its perfected security interest in the Pledged Collateral. Debtor shall (and shall cause each Subsidiary),
at its expense, do, make, procure and execute and deliver all acts, things, writings and assurances as Lender may at any time reasonably
request to protect, assure or enforce its rights, interests and remedies created by, provided in or emanating from this Agreement.
Debtor authorizes Lender to file financing statements covering the Pledged Collateral and containing such legends as Lender shall
deem reasonably necessary or customary in secured lending in the jurisdictions in which the Ownership Interests reside or are deemed
to reside in order to protect Lender’s security interest in the Pledged Collateral. Debtor agrees, subject to the terms of
the Loan Agreement, to pay all taxes, fees and costs (including reasonable attorneys’ fees) paid or incurred by Lender in
connection with the preparation, filing or recordation thereof. Debtor shall not file any amendments, correction statements or
termination statements concerning the Pledged Collateral without the prior written consent of Lender.

 

    3

     

    

 

7. Continued
Possession of Collateral. To the extent that Lender has possession of the Pledged Interests, Lender shall hold possession of
the Pledged Interests so long as any of the Obligations are outstanding (other than inchoate indemnification obligations). Upon
the payment in full in cash and the performance of all of the Obligations (other than inchoate indemnification obligations), Lender
shall release any remaining Pledged Interests to Debtor. Promptly after payment (or other performance) in full of the Obligations
(other than inchoate indemnification obligations), Lender shall (at its option), at Debtor’s expense, either (a) terminate
or send Debtor or its designee appropriate authority to terminate any financing statements filed in favor of Lender or other governmental
registrations with respect to the Pledged Collateral, or (b) authorize Debtor or its designee to terminate any such financing statements
or governmental registrations. To the extent that Lender has possession of the Pledged Interests, upon the payment (or other performance)
in full of the Obligations (other than inchoate indemnification obligations), Lender shall deliver to Debtor or its designee the
Pledged Interests.

 

8. Covenants.

 

(a) Debtor.
Debtor agrees that, so long as this Agreement is in effect, Debtor will not, without Lender’s prior written consent or
as otherwise expressly permitted by the Loan Agreement, withdraw, sell, assign, transfer, pledge or otherwise encumber the Pledged
Collateral or any part thereof. If Debtor at any time becomes entitled to receive any shares or other property (other than cash)
as additions to, in substitution of or in exchange for any of the Pledged Collateral, Debtor shall accept the same as Lender’s
agent, shall promptly notify Lender and upon request of Lender deliver the same to Lender (or the Custodian, as appropriate) in
the exact form received, with all necessary transfer instruments or stock powers, to be held as further security for the Obligations;
provided that so long as no Event of Default has occurred and is continuing, Debtor shall be entitled to receive and retain any
and all cash distributions and dividends and other cash otherwise received with respect to, or otherwise in connection with, the
Pledged Collateral. Debtor shall procure and use its best commercial efforts in assisting Lender to secure the approval of the
Reserve Bank of India (to the satisfaction of Lender) for giving effect to the pledge created under this Agreement.

 

(b) Subsidiary.
While any Obligations remain outstanding and unperformed, Subsidiary: (i) shall comply with the provisions of the Loan Documents
and shall take no action which is inconsistent with the provisions of the Loan Documents; (ii) shall not, without the prior written
approval of Lender, permit the transfer or otherwise disposal of any shares or securities that are pledged and/or undertaken to
not be disposed or encumbered under the finance documents, or any legal or beneficial interest in relation thereto; (iii) shall
permit Lender to freely transfer the pledged shares pursuant to any enforcement by Lender in accordance with the terms of the Loan
Documents, and the Board of Directors of Subsidiary shall register any transfer of pledged securities effected as a result of the
enforcement of any of the rights of Lenders in accordance with the terms of this Agreement and the Deed of Undertaking; (iv) shall
not borrow any monies prior to procuring Lender’s consent; (v) shall not issue any equity or any securities or other instruments
that are convertible into equity, unless such equity or convertible securities or instruments are issued to the holders of the
Pledged Interests and all indicia of such equity (such as share certificates) are delivered to Lender as custodian and otherwise
pursuant to the Loan Documents, and Subsidiary shall reflect the interest of Lender in its books and records pertaining to such
securities; (vi) except as otherwise approved by Lender in writing, Subsidiary shall not amend or modify its articles in any manner
which would be inconsistent with the provisions of any of the Loan Documents or which will result in a change of ownership or change
of control of Subsidiary; (vii) except as otherwise approved by Lender in writing Subsidiary shall not make pay or declare any
Dividends except in accordance with the Financing Documents; and (viii) within fifteen (15) Business Days from the Effective Date,
Subsidiary shall amend its Constitutional Documents (including articles of association) in form and substance acceptable to Lender
to reflect the covenants and restrictions set forth in clauses (ii) through (vii), inclusive.

 

    4

     

    

 

9. Care
of Collateral. Debtor shall have all risk of loss of the Pledged Collateral. Lender shall have no liability or duty, absent
gross negligence or intentional misconduct, either before or after the occurrence of an Event of Default, on account of loss of
or damage to, or to collect or enforce any of its rights against, the Pledged Collateral, to collect any income accruing on the
Pledged Collateral, or to preserve rights against other parties. If Lender actually receives any notices requiring action with
respect to Pledged Collateral in Lender’s possession, Lender shall take reasonable steps to forward such notices to Debtor.
Debtor is responsible for responding to notices concerning the Pledged Collateral, voting the Pledged Collateral, and exercising
rights and options, calls and conversions of the Pledged Collateral. Except as aforesaid, Lender’s sole responsibility shall
be to take such action as is reasonably requested by Debtor in writing, however, Lender is not responsible to take any action that,
in Lender’s reasonable judgment, would adversely affect (other than de minimis) the value of the Pledged Collateral as security
for the Obligations. While Lender is not required to take certain actions, if action is needed, in Lender’s reasonable discretion,
to preserve and maintain its lien on the Pledged Collateral, Debtor authorizes Lender to take such actions, but Lender is not obligated
to do so.

 

10. Assignment
of Collateral. In addition to all other rights available to it under applicable laws or otherwise, should Lender assign or
transfer the loans extended to Debtor under the Loan Agreement, Lender shall have the right to assign therewith Lender’s
rights in any of the Pledged Collateral, and, subject to applicable law, any assignee or transferee shall have the rights of Lender
hereunder with respect to the Pledged Collateral so assigned or transferred, and Lender shall be thereafter relieved from all duties
with respect to any such Pledged Collateral to the extent of such assignment or transfer.

 

11. Event
of Default. The occurrence of any one or more of the following events shall constitute an event of default (an “Event
of Default”) under this Agreement: (a) an Event of Default under and as defined in the Loan Agreement shall have occurred;
(b) any amendment to or termination of a financing statement naming Debtor as debtor and Lender as secured party, or any correction
statement with respect thereto, is filed in any jurisdiction by Debtor without the prior consent of Lender prior to the payment
in full in cash and the performance of all of the Obligations (other than inchoate indemnification obligations), if such amendment
or termination or correction statement would, in Lender’s reasonable business judgment, have an adverse effect on Lender
as a secured party with respect to the Pledged Collateral secured thereby, (c) any registration or other recording of Lender’s
security interest, lien or transfer or assignment for security is amended or terminated without Lender’s prior written consent,
prior to the payment in full in cash and the performance of all of the Obligations (other than inchoate indemnification obligations),
if such amendment or termination would, in Lender’s reasonable business judgment, have an adverse effect on Lender as a secured
party with respect to the Collateral secured thereby; or (d) the breach of any material provision of this Agreement by Debtor or
the failure by Debtor or Subsidiary to observe or perform (or the failure of Debtor to procure the performance by Subsidiary) of
any of the material provisions of this Agreement, following written notice thereof (to the extent that Lender would have knowledge
of such breach) and the greater of ten (10) calendar days or the applicable cure period specified in the Loan Agreement in which
to cure such breach or failure; provided, however, that if such failure is reasonably susceptible of cure but cannot by its nature
be cured within such ten (10) day period or cannot, after diligent attempts by Debtor, be cured within such ten (10) calendar day
period, and such default is likely to be cured within a reasonable time, then Debtor shall have an additional period (which shall
not in any case exceed thirty (30) calendar days) to cure such failure; provided, however, that Debtor’s right to such additional
cure periods shall be conditioned upon (i) Debtor having provided Lender prompt notice of such failure, together with details as
to the steps taken and proposed to be taken to cure such failure, (ii) Debtor’s undertaking to cure such failure within such
additional cure periods, and (iii) Debtor providing to Lender its factual basis for believing such failure will be cured within
such additional periods, and subject to Debtor’s compliance with the foregoing clauses (i) through (iii), the failure during
such period to cure the default shall not be deemed an Event of Default hereunder.

 

    5

     

    

 

12. Remedies.
Subject to Section 12(g):

 

(a) Upon
the occurrence and during the continuance of an Event of Default hereunder, Lender may, at its option, proceed to enforce this
Agreement and in connection therewith may (i) declare all or any part of the unpaid Loan, together with all accrued and unpaid
interest thereon, to be immediately due and payable, (ii) retain or sell all or any portion of the Pledged Collateral and apply
such Pledged Collateral or the proceeds thereof against the Loan up to the limits expressly provided herein, (iii) exercise any
remedies available to it under the Loan Documents and (iv) otherwise exercise all of the rights and remedies of a secured party
under the Code and under other applicable laws. Without limiting the foregoing, upon the occurrence and during the continuance
of an Event of Default, Lender shall have the right (i) to transfer the whole or any part of the Pledged Collateral into
the name of Lender or its nominee, (ii) to notify any person obligated on any of the Pledged Collateral to make payment directly
to Lender or its nominee of any amounts due or to become due thereon and (iii) to vote the Pledged Collateral.

 

(b) Any
written notice of the sale, disposition or other intended action by Lender with respect to the Pledged Collateral which is sent
by certified mail, return receipt requested or by overnight courier to Debtor at Debtor’s address specified in the introductory
paragraph hereof, or such other address of Debtor as Debtor may from time to time provide in writing to Lender, at least ten (10)
days prior to such sale, disposition or action, shall constitute reasonable notice to Debtor, unless applicable law requires a
longer period. However, this provision shall not be construed to impose any obligation on Lender to notify Debtor of Lender’s
intent to sell, dispose of or take other action with respect to the Pledged Collateral, except to the extent applicable law requires
such notice or notice is otherwise expressly required herein.

 

(c) Debtor
recognizes that Lender may be unable to effect a public sale of all or a part of the Pledged Collateral by reason of certain prohibitions
contained in the Securities Act of 1933, as amended, or applicable state or provincial securities laws, but may be compelled to
resort to one or more private sales to a restricted group of purchasers who will be obliged to agree, among other things, to acquire
all or a part of the Pledged Collateral for their own account, for investment and not with a view to the distribution or resale
thereof. Debtor acknowledges and agrees that any private sale so made may be at prices and on other terms less favorable to the
seller than if such Pledged Collateral were sold at public sale, and that Lender has no obligation to delay the sale of such Pledged
Collateral for the period of time necessary to permit registration of such Pledged Collateral for public sale under any securities
laws. Debtor agrees that a private sale or sales made under the foregoing circumstances shall be deemed to have been made in a
commercially reasonable manner. If any consent, approval or authorization of any federal, state, provincial, municipal or other
governmental department, agency or authority should be necessary to effect any sale or other disposition of the Pledged Collateral,
or any partial sale or other disposition of the Pledged Collateral, Debtor will execute all such applications and other instruments
as may be required in connection with securing any such consent, approval or authorization, and will otherwise use its best commercial
efforts to secure the same.

 

    6

     

    

 

(d) All
costs and expenses, including, without limitation, attorneys’ fees and expenses, incurred by or on behalf of Lender in connection
with the taking, holding, preparing for sale or other disposition, selling, managing, collecting or otherwise disposing of the
Pledged Collateral, and when overdue and representing an Event of Default, at the election of Lender in its sole discretion, together
with interest thereon at a per annum rate of interest which is equal to the then highest rate of interest charged on the Obligations
during an Event of Default under the Loan Agreement from the earlier of the date paid or demanded until repaid in full (the “Liquidation
Costs”), shall be paid by Debtor to Lender on demand and shall constitute and become a part of the Obligations secured
hereby. Any retained Pledged Collateral and any proceeds of sale or other disposition of the Pledged Collateral (up to the limits
expressly set forth above) will be applied by Lender to the payment of the Liquidation Costs, and the balance of such proceeds
(if any) will be applied by Lender toward the payment of the Obligations (whether then due or not) in such order and manner of
application as Lender may from time to time in its sole discretion determine. Except as may be otherwise specifically provided
in this Agreement, all Pledged Collateral and proceeds of Pledged Collateral coming into Lender’s possession may be applied
by Lender to any of the Obligations, whether matured or unmatured, as Lender shall determine in its sole discretion. Lender may
defer the application of non-cash proceeds of Pledged Collateral to the Obligations until cash proceeds are actually received by
Lender.

 

(e) Each
right, power and remedy of Lender as provided for in this Agreement, now or hereafter existing at law or in equity or by statute
or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power or remedy provided for in
this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the
exercise by Lender of any one or more such rights, powers or remedies shall not preclude the simultaneous or later exercise by
Lender of any or all such other rights, powers or remedies.

 

(f) No
failure or delay by Lender to insist upon the strict performance of any term, condition, covenant or agreement of this Agreement,
or to exercise any right, power or remedy consequent upon a breach thereof, shall constitute or be deemed to constitute a waiver
of any such term, condition, covenant or agreement or of any such breach, or preclude Lender from exercising any such right, power
or remedy at any later time or times.

 

(g) The
rights of Lender to exercise remedies hereunder with respect to Subsidiary that would, under the laws of India, constitute a “transfer”
of the Ownership Interests of Debtor in Subsidiary shall not be exercised by Lender until such time as it has received the registration
or approval of the transfer (for security) of such Ownership Interests from the Reserve Bank of India; provided, however, the custody
of the share certificates representing such Ownership Interests with Lender is not intended by the parties to effect a transfer
of such Ownership Interests.

 

13. Voting
Rights. Unless an Event of Default has occurred and is continuing, Debtor shall be permitted to exercise all voting and shareholder
rights with respect to the Pledged Interests; provided, however, that no vote shall be cast or shareholder right exercised or other
action taken which, in Lender’s reasonable judgment, would be reasonably likely to impair the Pledged Collateral or which
would be inconsistent with or result in any violation of any provision of the Loan Documents, including, without limitation, dissolution.
Lender shall reasonably cooperate with Debtor in helping Debtor exercise its voting and shareholder rights with respect to the
Pledged Interests consistent with this Section 13; provided, however, that such cooperation by Lender (or any lack thereof) shall
have no impact on the limitations on Lender’s obligations established by Section 4 above. In support of the conditionally-exercisable
voting rights granted to Lender hereunder, as permitted and customary under Applicable Law, Debtor hereby shall execute and deliver
the Proxies appended hereto as Exhibits C and D.

 

    7

     

    

 

14. Debtor
Waivers. To the extent not prohibited by applicable law, Debtor waives any right to require Lender to (a) proceed against Subsidiary,
any guarantor or any other person; (b) proceed against or exhaust any security held from Subsidiary, if any; (c) marshal any assets
of Subsidiary; or (d) pursue any other remedy in Lender's power whatsoever. Following the occurrence and during the continuance
of an Event of Default, Lender may, at its election, exercise, decline or fail to exercise any right or remedy it may have against
Subsidiary or any security held by Lender, including without limitation the right to foreclose upon any such security by judicial
or no judicial sale, without affecting or impairing in any way the liability of Debtor hereunder. To the extent not prohibited
by applicable law, Debtor waives (i) any defense arising by reason of any disability or other defense of Subsidiary or by reason
of the cessation from any cause whatsoever of the liability of Subsidiary, (ii) any setoff, defense or counterclaim that Subsidiary
may have against Lender, (iii) until payment in full of the Obligations, any right of subrogation or reimbursement, contribution
or other rights against Subsidiary, and Debtor waives any right to enforce any remedy that Lender now has or may hereafter have
against Subsidiary, (iv) any defense arising out of the absence, impairment or loss of any right of reimbursement or subrogation
or any other rights against Subsidiary, and (v) all presentment, demand for performance, notice of nonperformance, protest, notice
of protest, notice of dishonor, notice of acceptance of this Agreement, notice of any default, notice of payment and nonpayment
whenever occurring, notice of release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel
paper, and guarantees at any time held by Lender on which Debtor may in any way be liable, and notice of the existence, creation,
or incurring of new or additional indebtedness.

 

15. Power
of Attorney. Debtor hereby grants Lender an irrevocable power of attorney, coupled with an interest, with full power of substitution
and full power and authority to: (i) prepare, execute and deliver on behalf of Debtor any and all such instruments, assignments,
stock or bond powers, financing statements, certificates and other documents as Lender deems reasonably necessary in order to perfect
and protect its interests in the Pledged Collateral, (ii) upon the occurrence and during the continuance of an Event of Default,
execute on behalf of Debtor any and all such instruments, assignments, stock or bond powers, financing statements, certificates
and other documents as Lender deems reasonably necessary in order to perfect and protect its interests in the Pledged Collateral,
(iii) upon the occurrence and during the continuance of an Event of Default, endorse Debtor’s name on requests to other secured
parties of Debtor for accountings, confirmations of collateral and confirmations of statements of account, and (iii) upon the occurrence
and during the continuance of an Event of Default, without any advance notice, but with prompt advice to Debtor, (A) to liquidate
any Pledged Collateral and apply the proceeds thereof directly to the Obligations, (B) to transfer ownership of any Pledged Collateral
to an account designated by Lender and (C) to take such other actions with respect to the Pledged Collateral as Lender, in its
sole discretion, shall deem necessary or appropriate in order to protect its interest in the Pledged Collateral. This power of
attorney is made pursuant to this Agreement, is coupled with an interest and may not be revoked or cancelled before all of the
Obligations have been paid or otherwise satisfied (other than inchoate indemnification obligations).

 

16. Insolvency
of Debtor. If Debtor becomes insolvent or is adjudicated bankrupt or files a petition for reorganization, arrangement, composition
or similar relief or is the subject of any other Insolvency Proceeding (as defined in the Loan Agreement) under any present or
future provision of the United States Bankruptcy Code, the Hong Kong Legal Requirements relating to insolvency (including but not
limited to Companies Ordinance (Cap 32), the Companies (Winding Up) Rules (Cap 32H) and the Bankruptcy Ordinance (Cap 6) or equivalent
Legal Requirements in any other jurisdiction, or if such a petition is filed involuntarily against any Debtor, and in any such
proceeding part or all of any Indebtedness or Obligations under the Loan Agreement are terminated or rejected or any obligation
of Debtor is modified or abrogated, or if Debtor's Obligations are otherwise avoided for insolvency, bankruptcy or any similar
reason, Debtor irrevocably agrees that its liability hereunder shall not thereby be affected or modified and such liability shall
continue in full force and effect as if no such action or proceeding had occurred. This Agreement shall continue to be effective
or be reinstated, as the case may be, if any payment on the Obligations is required to be returned by Lender upon the insolvency,
bankruptcy or reorganization of Debtor, or otherwise, as though such payment had not been made.

 

    8

     

    

 

17. Governing
Law; Venue; Service. This Agreement and all acts and transactions hereunder and all rights and obligations of Lender and Debtor
shall be governed by the laws of the State of California, provided that Debtor and Subsidiary obligations hereunder may be perfected
under the laws of the jurisdiction of Debtor and Subsidiary. As a material part of the consideration to Lender to enter into this
Agreement, Debtor (i) agrees that all actions and proceedings relating directly or indirectly to this Agreement shall, at Lender's
option, be litigated in courts located within California, and that the exclusive venue therefor shall be Santa Clara County; (ii)
consents to the jurisdiction and venue of any such court and consents to service of process in any such action or proceeding by
personal delivery or any other method permitted by law; (iii) irrevocably agrees that service upon it at its principal business
address as specified in the Loan Agreement shall constitute valid and effective service upon Debtor and Subsidiary for all matters
arising out of this Agreement; and (iv) waives any and all rights Debtor may have to object to the jurisdiction of any such court,
or to transfer or change the venue of any such action or proceeding. Without limiting the foregoing, certain Loan Documents creating
Lender security interests and Lender’s perfection and/or registration of the same may specify a governing law other than
California law and may specify a jurisdiction for enforcement of security interests or other actions in connection with such other
Loan Documents. In such cases, the terms of such other Loan Documents shall be construed as supplemental to the terms of this Section
and Lender rights thereunder may be exercised on the terms set forth in such other Loan Documents.

 

18.  Further
Assurances. Subsidiary acknowledges the pledge of its Ownership Interests contemplated in this Agreement and Debtor shall,
and shall direct Subsidiary to, promptly execute and cause to be delivered to Lender such instruments and other documents, and
shall take such other lawful actions, as Lender may reasonably request for the purpose of ensuring that the pledge of Subsidiary
Ownership Interests set forth herein are compliant with the laws of the jurisdictions applicable to Subsidiary.

 

19. Miscellaneous.
Neither this Agreement nor any term, condition, covenant, or agreement herein may be changed, waived, discharged or terminated
orally, but only by an instrument in writing signed by the party against whom enforcement of the change, waiver, discharge or termination
is sought. This Agreement shall be binding upon the heirs, personal representatives, successors and assigns of Debtor and shall
inure to the benefit of the successors and assigns of Lender. As used herein the singular number shall include the plural, the
plural the singular, and the use of the masculine, feminine or neuter gender shall include all genders as the context may require,
and the term “person” shall include an individual, a corporation, an association, a partnership, a trust, a limited
liability company, an organization, a government or political subdivision thereof and a governmental agency. Unless varied by this
Agreement, all terms used herein which are defined by the Code shall have the same meanings hereunder as assigned to them by the
Code, as in effect on the Effective Date. The Loan is not a “consumer transaction” as defined in the Code and none
of the Collateral was or will be purchased primarily for personal, family or household purposes. References to “Debtor”
herein mean “each Debtor”. Except to the extent otherwise expressly specified in this Agreement, capitalized terms
used but not defined herein have their meanings as set forth in the Loan Agreement.

 

    9

     

    

 

20. Integration.
This Agreement and the other Loan Documents (as defined in the Loan Agreement) are the final, entire and complete agreement
between Debtor and Lender with respect to the Pledged Interests and supersede all prior and contemporaneous negotiations and oral
representations and agreements, all of which are merged and integrated in this Agreement.

 

21. MUTUAL
JURY TRIAL WAIVER. DEBTOR AND Lender EACH HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING
OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN Lender AND DEBTOR,
OR ANY CONDUCT, ACTS OR OMISSIONS OF Lender OR DEBTOR OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY
OTHER PERSONS AFFILIATED WITH Lender OR DEBTOR, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.
WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO
WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties
hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference
to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County,
California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable
provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury,
in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall
be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1,
inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering
temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall
be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of
any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial
reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding
before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable
to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be
before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may
enforce all discovery rules and order applicable to judicial proceedings in the same manner as a trial court judge. The parties
agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether
of fact or of law, and shall report a statement of decision thereon pursuant to the California Code of Civil Procedure § 644(a).
Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral,
or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation,
and enforceability of this paragraph.

 

IN WITNESS WHEREOF,
the undersigned have caused this Pledge Agreement to be duly executed and delivered as a Deed (as applicable) by their authorized
representative(s) as of the Effective Date.

 

[SIGNATURE
PAGE FOLLOWS]

 

    10

     

    

 

	
        HK
debtor:

        Executed
        and Delivered as a Deed by     )

        Borqs
Hong Kong Limited                            )

        Acting
        by:

         

        /s/ Pat Sek
        Yuen Chan                           

        Name:
        Pat Sek Yuen
Chan

        Title:
        Sole Director

         

        in
        the presence of :

         

        /s/ Anthony
        Chan                                 

        Witness
        name: Anthony Chan

        Witness
        occupation:

         

        Cayman
        Debtor:

         

        Executed
        and Delivered as a Deed by         ) 

        BORQS
        International Holding Corp          )

         

        Acting
        by:

         

        /s/ Anthony
        Chan                                 

         

        Name: Pat Sek Yuen
Chan

         

        Title:
Sole Director

         

        in
        the presence of :

         

        /s/ Anthony
        Chan                                   

        Witness
        name: Anthony Chan

        Witness
        occupation: CFO
	
        Lender:

        PARTNERS
        FOR GROWTH V, L.P.

         

        By /s/ Geoffrey
        Allan                                      

         

        Name: Geoffrey Allan

         

        Title: Manager,
        Partners for Growth V, LLC

        Its General Partner

	
         

        ACKNOWLEDGED
        BY:

        Subsidiary:

         

        Borqs Software Solutions
        Private Limited

         

         

         

        /s/ Pat Sek Yuen Chan                           

        Director

        Name: Pat Sek Yuen
Chan

         

        __________________________

        Director 

        Name:
        _______________________
	 

 

 

Signature Page to Share Pledge Agreement
(BORQS India)

 

     

     

    

 

EXHIBIT A

 

PLEDGED INTERESTS

 

The Pledged Interests
consist of all of Debtor’s right, title and interest in and to the following whether owned now or hereafter arising and whether
the Debtor has rights now or hereafter has rights therein and wherever located:

 

All Ownership Interests (as defined in the Agreement) in the
Pledged Collateral, including those identified as:

 

With respect to HK Debtor, Certificate No. ______________ for
one (1) share, and

 

With respect to Cayman Debtor, Certificate No. _______________
for Nine Thousand Nine Hundred Ninety-Nine (9,999) shares, and

 

all of Pledgor's books relating to the foregoing and any and
all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and proceeds thereof.

 

Exhibit A to BORQS (India Subsidiary)
Share Pledge Agreement

 

    A-1

     

    

 

EXHIBIT B

 

IRREVOCABLE STOCK POWER

 

FOR VALUE RECEIVED,
the undersigned (“Debtor”) does hereby sell, assign and transfer to ______________________________________________
all of its Ownership Interests (as defined in the Share Pledge Agreement to which this Irrevocable Stock Power is exhibited), which
are, as of the date of this Irrevocable Stock Power, represented by share certificate No. _______________for [one (1)] share in
Borqs Software Solutions Private Limited, a company formed under the laws of India, standing in the name of Debtor on the books
of said Person. The undersigned does hereby irrevocably constitute and appoint ________________________, attorney, to transfer
said Ownership Interests in such Person on the books of said Person, with full power of substitution of the premises. Said power
of attorney shall not effect a transfer of the specified Ownership Interests until such time as the Reserve Bank of India has approved
and/or registered the transfer (for security) of such Ownership Interests.

 

____________ __, 2019

 

	 	Debtor:	 
	 	 	 
	 	EXECUTED AND DELIVERED AS A DEED BY	)        
	 	BORQS HONG KONG LIMITED   	)
	 	ACTING BY:	 
	 	 

 

	 	 
	 	_________________________________
	 	 
	 	NAME: _______________________
	 	 
	 	TITLE: SOLE DIRECTOR
	 	 
	 	IN THE PRESENCE OF :
	 	 
	 	________________
	 	 
	 	WITNESS NAME: ________________________
	 	 
	 	WITNESS OCCUPATION: _________________

 

    B-1

     

    

  

EXHIBIT B

 

IRREVOCABLE STOCK POWER

 

FOR VALUE RECEIVED,
the undersigned (“Debtor”) does hereby sell, assign and transfer to ______________________________________________
all of its Ownership Interests (as defined in the Share Pledge Agreement to which this Irrevocable Stock Power is exhibited), which
are, as of the date of this Irrevocable Stock Power, represented by share certificate No. _______________for [one (1)] share in
Borqs Software Solutions Private Limited, a company formed under the laws of India, standing in the name of Debtor on the books
of said Person. The undersigned does hereby irrevocably constitute and appoint ________________________, attorney, to transfer
said Ownership Interests in such Person on the books of said Person, with full power of substitution of the premises. Said power
of attorney shall not effect a transfer of the specified Ownership Interests until such time as the Reserve Bank of India has approved
and/or registered the transfer (for security) of such Ownership Interests.

 

______________ __, 2019

 

	 	Debtor:	 
	 	 	 
	 	EXECUTED AND DELIVERED AS A DEED BY	)
	 	BORQS INTERNATIONAL HOLDING CORP	)
	 	ACTING BY:
	 	 
	 	 
	 	_________________________________
	 	 
	 	NAME: _______________________
	 	TITLE: SOLE DIRECTOR
	 	 
	 	IN THE PRESENCE OF :
	 	 
	 	________________
	 	 
	 	WITNESS NAME: ________________________
	 	 
	 	WITNESS OCCUPATION: _________________

 

    B-2

     

    

 

EXHIBIT C

 

IRREVOCABLE PROXY

 

The undersigned
(“Grantor”), the holder of Ownership Interests (as hereinafter defined) in its subsidiary specified below (“Subsidiary”),
hereby irrevocably appoints Partners for Growth V, L.P., a Delaware limited partnership (“Lender”), as its agent,
to vote all such Ownership Interests (as defined in the Share Pledge Agreement to which this Proxy is exhibited on the books of
Subsidiary as of the Effective Date (and as of any future date if additional Ownership Interests are held by Grantor), at all meetings
of equity holders and adjournments thereof, and in all written consents of equity holders, with respect to all matters that are
or are required to be submitted to equity holders for approval. The foregoing appointment of Lender as its agent shall continue
from the date of this Proxy until such time as all Obligations (other than inchoate indemnity obligations) under that certain Loan
and Security Agreement between the undersigned and Lender (the “Loan Agreement”) have been paid and performed.
Lender shall have all the power the undersigned possesses as an equity holder in each Subsidiary. The undersigned hereby ratifies
and confirms all acts Lender may do or cause to be done by virtue of this Proxy. The rights granted under this Irrevocably Proxy
shall be exercised by Lender only upon the occurrence of an Event of Default under the Loan Agreement that is continuing.

 

The undersigned hereby
revokes all previous proxies given by the undersigned with respect to such Ownership Interests in Subsidiary. The undersigned hereby
waives all right to cancel this Proxy at any time during the period set forth above. This Proxy is coupled with an interest.

 

Subsidiary:
Borqs Software Solutions Private Limited, a company formed under the laws of India

 

In witness whereof, the undersigned has executed
this Proxy as of _____________ __, 2019.

 

	 	Grantor:	 
	 	 	 
	 	EXECUTED AND DELIVERED AS A DEED BY	 )
	 	BORQS HONG KONG LIMITED	)
	 	ACTING BY:
	 	 
	 	 
	 	_________________________________
	 	 
	 	NAME: _______________________
	 	TITLE: SOLE DIRECTOR
	 	 
	 	IN THE PRESENCE OF :
	 	 
	 	________________
	 	 
	 	WITNESS NAME: ________________________
	 	 
	 	WITNESS OCCUPATION: _________________

 

    C-1

     

    

 

EXHIBIT C

 

IRREVOCABLE PROXY

 

The undersigned
(“Grantor”), the holder of Ownership Interests (as hereinafter defined) in its subsidiary specified below (“Subsidiary”),
hereby irrevocably appoints Partners for Growth V, L.P., a Delaware limited partnership (“Lender”), as its
agent, to vote all such Ownership Interests (as defined in the Share Pledge Agreement to which this Proxy is exhibited on the
books of Subsidiary as of the Effective Date (and as of any future date if additional Ownership Interests are held by Grantor),
at all meetings of equity holders and adjournments thereof, and in all written consents of equity holders, with respect to all
matters that are or are required to be submitted to equity holders for approval. The foregoing appointment of Lender as its agent
shall continue from the date of this Proxy until such time as all Obligations (other than inchoate indemnity obligations) under
that certain Loan and Security Agreement between the undersigned and Lender (the “Loan Agreement”) have been
paid and performed. Lender shall have all the power the undersigned possesses as an equity holder in each Subsidiary. The undersigned
hereby ratifies and confirms all acts Lender may do or cause to be done by virtue of this Proxy. The rights granted under this
Irrevocably Proxy shall be exercised by Lender only upon the occurrence of an Event of Default under the Loan Agreement that is
continuing.

 

The undersigned hereby
revokes all previous proxies given by the undersigned with respect to such Ownership Interests in Subsidiary. The undersigned hereby
waives all right to cancel this Proxy at any time during the period set forth above. This Proxy is coupled with an interest.

 

Subsidiary:
Borqs Software Solutions Private Limited, a company formed under the laws of India

 

In witness whereof, the undersigned has
executed this Proxy as of ____________ __, 2019.

 

	 	Grantor:	 
	 	 	 
	 	EXECUTED AND DELIVERED AS A DEED BY	 )
	 	BORQS INTERNATIONAL HOLDING CORP	)
	 	ACTING BY:
	 	 
	 	_________________________________
	 	 
	 	NAME: _______________________
	 	 
	 	TITLE: SOLE DIRECTOR
	 	 
	 	IN THE PRESENCE OF :
	 	 
	 	________________
	 	 
	 	WITNESS NAME: ________________________
	 	 
	 	WITNESS OCCUPATION: _________________

 

    C-2

     

    

 

EXHIBIT D

 

Form MGT-11 Proxy – Borqs International
Holding Corp

 

Attached.

 

    D-1

     

    

 

EXHIBIT D

 

Form MGT-11 Proxy – Borqs Hong
Kong Limited

 

Attached.

 

 

 

D-2

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