Document:

Exhibit 10.54

 

INTELLECTUAL PROPERTY SECURITY AGREEMENT

 

This Intellectual
Property Security Agreement (this “Agreement”) is entered into as of August 26, 2016 (the “Effective Date”),
by and between PARTNERS FOR GROWTH IV, L.P. (“PFG”) and BORQS Hong Kong Limited, a private company limited by shares
under Hong Kong law, registered with the Companies Registry under number 1151010 and with its principal address at Office B, 21/F,
Legend Tower, 7 Shing Yip Street, Kwun Tong, Kowloon, Hong Kong (“Grantor”), with reference to the following facts:

 

A. PFG and
Grantor (as Borrower), are parties to that certain Loan and Security Agreement of even date with this Agreement (as amended from
time to time, the “Loan Agreement”). (Capitalized terms used herein have the meaning assigned in the Loan Agreement.)

 

B. Grantor
has guaranteed the Obligations of each Borrower under the Loan Agreement pursuant to a Debenture of even date with the Loan Agreement,
pursuant to which Grantor has granted to PFG a security interest in all Charged Assets. Charged Assets include without limitation
certain Intellectual Property (including without limitation the Intellectual Property described herein) owned by Grantor.

 

Grantor agrees as follows:

 

1.
To secure performance of all of its “Obligations” as defined in the Loan Agreement, Grantor grants to PFG a security
interest in all of Grantor’s right, title and interest in Grantor’s “Intellectual Property”, including without limitation
(i) the trademarks and servicemarks listed or required to be listed from time to time on Schedule A hereto, whether registered
or not, and all applications to register and registrations of the same and like protections, and the entire goodwill of the business
of Borrower connected with and symbolized by such trademarks, and (ii) the patents and patent applications listed or required to
be listed from time to time on Schedule B hereto and all like protections including, without limitation, all improvements,
divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same, (iii) all copyrights, maskworks,
software, computer programs and other works of authorship listed or required to be listed from time to time on Schedule C
hereto, and all extensions and renewals thereof, (iv) all domain names and domain name rights owned by it and used in connection
with its business and that of its Subsidiaries, all legal and equitable rights in domain names and ownership thereof, domain registry,
domain servers, web hosting and related contracts, services and facilities (collectively, “Domain Rights”) listed or
required to be listed from time to time on Schedule D hereto, and all extensions and renewals thereof, and (iv) all rights
to recover for past or future infringement of any of the foregoing, and (v) all right, title and interest in and to any and all
present and future license agreements with respect to any of the foregoing, and (vi) all present and future accounts, accounts
receivable and other rights to payment arising from, in connection with or relating to any of the foregoing and provided
that if any asset cannot be secured without consent of a third party (and such consent is not given), this Agreement will constitute
security over all proceeds and other amounts receivable from such asset.

 

     

     

    

 

2. Grantor
represents and warrants that (i) listed on Schedule A hereto are all trademark registrations and pending registrations owned
or controlled by Grantor, (ii) listed on Schedule B are all patents and patent applications owned or controlled by Grantor,
(iii) listed on Schedule C are all copyrights, software, computer programs, mask works, and other works of authorship owned
or controlled by Grantor which are registered with the United States Copyright Office and the copyright registry of each other
applicable jurisdiction, wherever located, and (iv) listed on Schedule D are all Domain Rights in which Grantor has any
legal, contractual or equitable right. Grantor shall: (a) protect, defend and maintain the validity and enforceability of its intellectual
property, other than intellectual property of immaterial business and monetary value that Grantor’s executive management
has made a determination not to maintain; (b) promptly advise PFG in writing of material infringements of its intellectual property;
and (c) not allow any intellectual property material to Grantor’s business to be abandoned, forfeited or dedicated to the
public without PFG’s written consent. If, before the Obligations have been paid and/or performed in full, Grantor shall (i)
adopt, use, acquire or apply for registration of any trademark, service mark or trade name, (ii) apply for registration of any
patent or obtain any patent or patent application; (iii) create or acquire any published or material unpublished works of authorship
material to the business that is or is to be registered with the U.S. Copyright Office or any non-U.S. equivalent or other Governmental
Body; or (iv) register or acquire any domain name or domain name rights, then the provisions of Section 1 shall automatically apply
thereto, and Grantor shall provide PFG written notice thereof concurrently with delivery of Borrower’s monthly compliance
certificate. Grantor shall further provide PFG with all information and details relating to the foregoing and shall take such further
actions as PFG may reasonably request from time to time to perfect or continue the perfection of PFG’s interest in such intellectual
property.

 

3. This
Agreement is being executed and delivered pursuant to the Loan Agreement; nothing herein limits any of the terms or provisions
of the Loan Agreement, and PFG’s rights hereunder and under the Loan Agreement are cumulative. This Agreement, the Loan Agreement
and the other Loan Documents set forth in full all of the representations and agreements of the parties with respect to the subject
matter hereof and supersede all prior discussions, oral representations, oral agreements and oral understandings between the parties.
This Agreement may not be modified or amended, nor may any rights hereunder be waived, except in a writing signed by the parties
hereto; provided, however, and notwithstanding the foregoing, PFG may amend the Schedules hereto from time to time when it becomes
aware of new Intellectual Property subject to this Agreement. In the event of any litigation between the parties based upon, arising
out of, or in any way relating to this Agreement, the prevailing party shall be entitled to recover all of its costs and expenses
(including without limitation attorneys’ fees) from the non-prevailing party. This Agreement and all acts, transactions, disputes
and controversies arising hereunder or relating hereto, and all rights and obligations of PFG and Grantor shall be governed by,
and construed in accordance with the internal laws (and not the conflict of laws rules) of the State of California.

 

    	 	2	 

     

    

 

4. Grantor agrees that simultaneously with
the execution of this Agreement, and thereafter upon any amendment of Schedule A, Schedule B, Schedule C or Schedule
D, the appropriate entities constituting Grantor shall execute notices in the forms appended hereto (each, a “Notice”),
as appropriate, with respect to all of the pledged Intellectual Property, now owned or hereafter acquired, and shall deliver each
Notice to PFG for the purpose of recordation at the U.S. Patent and Trademark Office or the U.S. Copyright Office, with any patent
or trademark registry outside of the United States or otherwise, as appropriate. Whether or not Grantor executes such a Notice
reflecting new Intellectual Property, Grantor hereby irrevocably appoints PFG as its lawful attorney-in-fact without any further
authorization to file such notices, liens or other instruments as may be customary from time to time for PFG to perfect security
interests in Grantor’s Intellectual Property. With respect to the power of attorney granted in the attached Domain Rights
Collateral Agreement and Notice, so long as no default has occurred and is continuing under the Loan Documents, PFG shall not take
any action referenced therein in the name of Grantor.

 

[Signature Page Follows]

 

    	 	3	 

     

    

 

	Address of Grantor:	BORQS Hong Kong Limited	 
	 	 	 
	Office B, 21/F, Legend Tower	 	 
	7 Shing Yip Street, Kwun Tong	 	 
	Kowloon, Hong Kong	By:	/s/ Pat Chan       	 
	 	Name: 	Pat Chan	 
	 	Title: 	Sole Director	 
	 	 	 
	 	By: 		 
	 	Name: 	 	 
	 	Title: 	Director	 
	 	 	 
	Address of PFG:	PARTNERS FOR GROWTH IV, L.P.	 
	Partners for Growth IV, L.P.	 	 
	1660 Tiburon Blvd., Suite D	 	 
	Tiburon, California 94920	 	 
	 	 	 
	 	By: 		 
	 	Name: 	 	 
	 	Title: 	Manager, Partners for Growth IV, LLC	 
	 	Its: 	General Partner	 

 

Intellectual Property Security Agreement
Signature Page

 

    	 	4	 

     

    

 

SCHEDULE
A

 

BORQS Hong Kong Limited

 

Trademark Schedule

 

	Serial Number - Registration Number	 	Date	 	Mark	 	Owner
	 	 	 	 	 	 	 
	None at Effective Date	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	5	 

     

    

  

SCHEDULE B

 

BORQS Hong Kong Limited

 

Patent Schedule

 

	Patent/Application Number	 	Title	 	Owner
	 	 	 	 	 
	None at Effective Date	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    	 	6	 

     

    

 

SCHEDULE C

 

BORQS Hong Kong Limited

 

COPYRIGHTS

 

	Copyright Number	 	Date	 	Title / Work	 	Owner
	 	 	 	 	 	 	 
	None at Effective Date	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	7	 

     

    

 

SCHEDULE D

 

BORQS Hong Kong Limited

 

	Domain
    Name	 	Domain
    Host	 	Admin
    Contact	 	Owner	 	Expiry
	 	 	 	 	 	 	 	 	 
	
        borqs.com
	 	
        www.verio.com
	 	
        Steve Lee

        +86-139-0139-5984
	 	Pat Chan, assigns to Borqs Hong Kong Ltd.	 	
        July 5,
2020

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    	 	8	 

     

    

 

TRADEMARK COLLATERAL AGREEMENT AND NOTICE

 

This Trademark Collateral Agreement
and Notice dated as of August __, 2016 (“Trademark Agreement”), is between BORQS Hong Kong Limited, a private company
limited by shares under Hong Kong law, registered with the Companies Registry under number 1151010 and with its principal address
at Office B, 21/F, Legend Tower, 7 Shing Yip Street, Kwun Tong, Kowloon, Hong Kong (“Assignor”) and Partners
for Growth IV, L.P., 1660 Tiburon Blvd., Suite D, Tiburon, California 94920 (“Assignee”) pursuant to a Loan and
Security Agreement, an Intellectual Property Security Agreement of even date herewith by and among Assignor and Assignee (the “IP
Security Agreement”) and pursuant to certain other loan documents referenced therein (collectively, the “Loan
Documents”).

 

WHEREAS, Assignor is the owner
of certain trademarks, including all federal applications and/or registrations therefor, together with the goodwill of the business
connected with the use of and symbolized thereby, as listed on Exhibit 1 hereto (the “Marks”); and

 

WHEREAS, Assignee has agreed to extend certain
credit to Assignor on condition that the Assignor pledge and grant to Assignee as collateral for the Obligations (as defined in
the Loan Documents) a security interest and lien in and to the Marks and all proceeds thereof and all other related claims and
rights as more fully described in the IP Security Agreement in favor of the Assignee, by and among Assignor and Assignee;

 

NOW THEREFORE, for good and valuable consideration,
as security for the due and timely payment and performance of the Obligations, Assignor hereby pledges and grants to Assignee a
security interest and lien in and to the Marks and all proceeds thereof and gives notice of such security interest and the existence
of such Security Agreement providing therefor.

 

Executed as of the date first above written.

 

	Assignor:	 	Assignee:
	 	 	 
	BORQS Hong Kong Limited	 	PARTNERS FOR GROWTH IV, L.P.
	 	 	 
	By 	         	 	By	             
	Name: 	  	 	Name: 	 
	Title: 	Director	 	Title: 	Manager, Partners for Growth IV, LLC
	 	 	 	Its General Partner
	 	 	 	 
	By	 	 	 
	Name:  	 	 	 
	Title: 	Director	 	 

 

    	 	9	 

     

    

 

EXHIBIT 1

 

BORQS Hong Kong Limited

 

Trademark Schedule

 

	Serial Number - Registration Number	 	Date	 	Mark	 	Owner
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	10	 

     

    

 

PATENT COLLATERAL AGREEMENT AND NOTICE

 

This Patent Collateral Agreement
and Notice dated as of August __, 2016 (“Patent Agreement”), is between BORQS Hong Kong Limited, a private company
limited by shares under Hong Kong law, registered with the Companies Registry under number 1151010 and with its principal address
at Office B, 21/F, Legend Tower, 7 Shing Yip Street, Kwun Tong, Kowloon, Hong Kong (“Assignor”) and Partners
for Growth IV, L.P., 1660 Tiburon Blvd., Suite D, Tiburon, California 94920 (“Assignee”) pursuant to a Loan and
Security Agreement, an Intellectual Property Security Agreement of even date herewith by and among Assignor and Assignee (the “IP
Security Agreement”) and pursuant to certain other loan documents referenced therein (collectively, the “Loan
Documents”).

 

WHEREAS, Assignor is the owner of certain
United States patents and/or patent applications as listed on Exhibit 1 hereto (the “Patents”); and

 

WHEREAS, Assignee has agreed to extend certain
credit to Assignor on condition that the Assignor pledge and grant to Assignee as collateral for the Obligations (as defined in
the Loan Documents) a security interest and lien in and to the Patents and all proceeds thereof and all other related claims and
rights as more fully described in the IP Security Agreement in favor of the Assignee, by and among Assignor and Assignee;

 

NOW THEREFORE, for good and valuable consideration,
as security for the due and timely payment and performance of the Obligations, Assignor hereby pledges and grants to Assignee a
security interest and lien in and to the Patents and all proceeds thereof and gives notice of such security interest and the existence
of the IP Security Agreement providing therefor.

 

Executed as of the date first above written.

 

	Assignor:	 	Assignee:
	 	 	 
	BORQS Hong Kong Limited	 	PARTNERS FOR GROWTH IV, L.P.
	 	 	 
	By 	         	 	By	             
	Name: 	  	 	Name: 	 
	Title: 	Director	 	Title: 	Manager, Partners for Growth IV, LLC
	 	 	 	Its General Partner
	 	 	 	 
	By	 	 	 
	Name:  	 	 	 
	Title: 	Director	 	 

 

    	 	11	 

     

    

 

EXHIBIT 1

 

BORQS Hong Kong Limited

 

Patent Schedule

 

 

	Patent/Application Number	 	Title	 	Owner
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 	12	 

     

    

 

COPYRIGHT COLLATERAL AGREEMENT AND NOTICE

 

This Copyright Collateral Agreement
and Notice dated as of August __, 2016 (“Copyright Agreement”), is between BORQS Hong Kong Limited, a private company
limited by shares under Hong Kong law, registered with the Companies Registry under number 1151010 and with its principal address
at Office B, 21/F, Legend Tower, 7 Shing Yip Street, Kwun Tong, Kowloon, Hong Kong (“Assignor”) and Partners
for Growth IV, L.P., 1660 Tiburon Blvd., Suite D, Tiburon, California 94920 (“Assignee”) pursuant to a Loan and
Security Agreement, an Intellectual Property Security Agreement of even date herewith by and among Assignor and Assignee (the “IP
Security Agreement”) and pursuant to certain other loan documents referenced therein (collectively, the “Loan
Documents”).

 

WHEREAS, Assignor is the owner of certain
copyrightable works which are the subject of United States copyright registrations and/or copyright applications as listed on Exhibit
1 hereto (the “Copyrights”); and

 

WHEREAS, Assignee has agreed to extend certain
credit to Assignor on condition that the Assignor pledge and grant to Assignee as collateral for the Obligations (as defined in
the Loan Documents) a security interest and lien in and to the Copyrights and all proceeds thereof and all other related claims
and rights as more fully described in the IP Security Agreement in favor of the Assignee, by and among Assignor and Assignee;

 

NOW THEREFORE, for good and valuable consideration,
as security for the due and timely payment and performance of the Obligations, Assignor hereby pledges and grants to Assignee a
security interest and lien in and to the Copyrights and all proceeds thereof and gives notice of such security interest and the
existence of the IP Security Agreement providing therefor.

 

Executed as of the date first above written.

 

	Assignor:	 	Assignee:
	 	 	 
	BORQS Hong Kong Limited	 	PARTNERS FOR GROWTH IV, L.P.
	 	 	 
	By 	         	 	By	             
	Name: 	  	 	Name: 	 
	Title: 	Director	 	Title: 	Manager, Partners for Growth IV, LLC
	 	 	 	Its General Partner
	 	 	 	 
	By	 	 	 
	Name:  	 	 	 
	Title: 	Director	 	 

 

    	 	13	 

     

    

 

EXHIBIT 1

 

BORQS Hong Kong Limited

COPYRIGHT SCHEDULE

 

	Copyright Number	 	Date	 	Title / Work	 	Owner
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	14	 

     

    

 

DOMAIN RIGHTS COLLATERAL AGREEMENT AND
NOTICE

 

This Domain Rights Collateral
Agreement and Notice dated as of August 26, 2016 (“Domain Agreement”), is between BORQS Hong Kong Limited, a private
company limited by shares under Hong Kong law, registered with the Companies Registry under number 1151010 and with its principal
address at Office B, 21/F, Legend Tower, 7 Shing Yip Street, Kwun Tong, Kowloon, Hong Kong (“Assignor”) and Partners
for Growth IV, L.P., 1660 Tiburon Blvd., Suite D, Tiburon, California 94920 (“Assignee”) pursuant to a Loan and
Security Agreement, an Intellectual Property Security Agreement of even date herewith by and among Assignor and Assignee (the “IP
Security Agreement”) and pursuant to certain other loan documents referenced therein (collectively, the “Loan
Documents”).

 

WHEREAS, Assignor is the owner of certain
Domain Rights as defined in the Loan Documents which are, as of the date hereof, as listed on Exhibit 1 hereto (the “Domain
Rights”); and

 

WHEREAS, Assignee has agreed to extend certain
credit to Assignor on condition that the Assignor pledge and grant to Assignee as collateral for the Obligations (as defined in
the Loan Documents) a security interest and lien in and to the Domain Rights and all proceeds thereof and all other related claims
and rights as more fully described in the IP Security Agreement in favor of the Assignee, by and among Assignor and Assignee;

 

NOW THEREFORE, for good and valuable consideration,
as security for the due and timely payment and performance of the Obligations: (1) Assignor hereby pledges and grants to Assignee
a security interest and lien in and to the Domain Rights and all proceeds thereof and gives notice of such security interest and
the existence of the IP Security Agreement providing therefor; and (2) Assignor hereby irrevocably appoints PFG as its lawful attorney-in-fact
without any further authorization to take any action and file any notice on behalf of Assignor that Assignor itself could file
in respect of its Domain Rights, including without limitation, to transfer Domain Rights, change administrative contacts in respect
of Domain Rights, maintain Domain Rights, and provide instructions to domain hosting services and any domain name registrars.

 

Executed as of the date first above written.

 

	Assignor:	 	Assignee:
	 	 	 
	BORQS Hong Kong Limited	 	PARTNERS FOR GROWTH IV, L.P.
	 	 	 
	By 	/s/ Pat chan  	 	By	             
	Name: 	Pat chan    	 	Name: 	 
	Title: 	Sole Director	 	Title: 	Manager, Partners for Growth IV, LLC
	 	 	 	Its General Partner
	 	 	 	 
	By	 	 	 
	Name:  	 	 	 
	Title: 	Director	 	 

 

    	 	15	 

     

    

 

EXHIBIT 1

 

BORQS Hong Kong Limited

 

	Domain Name	 	Domain Host	 	Admin Contact	 	Owner	 	Expiry
	 	 	 	 	 	 	 	 	 
	
        

        borqs.com
	 	
        

        www.verio.com
	 	
        Steve Lee

        +86-139-0139-5984
	 	Pat Chan, assigns to Borqs Hong Kong Ltd.	 	
        

        July 5, 2020

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  

    	 	16Exhibit 10.55

 

SUBORDINATION AGREEMENT

 

between SPD Silicon Valley Bank Co.,
Ltd. and Partners for Growth IV, L.P.

 

Borrower:       BORQS Hong
Kong Limited

 

Guarantor:      
BORQS International Holding Corp

 

This Subordination
Agreement (this “Agreement”) dated August 15, 2016, is between Partners for Growth IV, L.P., a Delaware limited
partnership (“Creditor”), and SPD Silicon Valley Bank Co., Ltd., a PRC banking institution (“SSVB”).

 

Recitals

 

A. The above-referenced named Borrower (“Borrower”)
has requested and/or obtained loans and/or other credit accommodations from SSVB which may be secured by their respective assets
and property, and the obligations of Borrower have been guaranteed by the above-named Guarantor.

 

B. Creditor has extended credit to Borrower
and/or may later extend other credit to Borrower under that certain Loan and Security Agreement and related documents dated as
of August 15, 2016, as may be amended from time to time (the “PFG Debt Documents”).

 

C. To induce SSVB to extend credit to
Borrower and make further extensions of credit to or for Borrower, or to purchase or extend credit pursuant to any instrument
or writing on which Borrower is liable or to grant renewals or extensions of any loan, extension of credit, purchase, or
other accommodation, Creditor will subordinate: (a) all of Borrower's indebtedness and obligations to Creditor, existing now
or later (the “Subordinated Debt”) to all of Borrower's indebtedness and obligations to SSVB, existing now or
later, consisting of principal indebtedness under the Facility Agreement for working capital loans dated as of August
31, 2015 as amended from time to time (the “Senior Debt Document”) in an amount up to US$5,000,000,
plus principal under a facility agreement between SSVB and a PRC subsidiary of Borrower in an amount up to RMB15,000,000,
plus (i) interest and all collection costs (including attorneys’ fees), (ii) all interest accruing after any
bankruptcy, reorganization or similar proceeding, (iii) the amount of all Protective Advances, and (iv) all other products
and/or credit services facilities up to $25,000 in the aggregate at any given time (collectively, the “Senior
Debt”); and (b) all of Creditor's security interests to all of SSVB's security interests in the Borrower's property
securing the Senior Debt, each in accordance with the terms of this Agreement.

 

THE PARTIES AGREE AS FOLLOWS:

 

1. Creditor subordinates to SSVB any security
interest or lien that it has in any property of Borrower (to the extent perfected and enforceable). Despite attachment or perfection
dates of Creditor’s security interest and SSVB’s security interest, SSVB’s security interest in all assets of
Borrower is prior to Creditor’s security interest.

 

2. Except as otherwise
expressly provided in this Agreement, all Subordinated Debt payments are subordinated to all of Borrower’s obligations to
SSVB for the Senior Debt.

 

3. Except as expressly allowed pursuant to
the below provisions of this Section 4 below, Creditor will not (a) demand or receive from Borrower any part of the
Subordinated Debt, by payment, prepayment, or otherwise, (b) exercise any remedy against any of Borrower’s property,
or (c) accelerate the Subordinated Debt, or begin to or participate in any action against Borrower in any way related to the Subordinated
Debt, until all the Senior Debt is paid. This does not prohibit Creditor from converting any Subordinated Debt into equity securities
of Borrower.

 

    	 		 

     

    

 

4. Except as otherwise provided in this Section
4:

 

(a) Creditor
may receive (i) regularly scheduled payments on the Subordinated Debt, including, without limitation, regularly-scheduled,
non-accelerated payments of fees, costs, principal and interest (including default interest) that are contemplated under the PFG
Debt Documents, a true and correct final copy of which has been delivered to SSVB (the “Permitted Payments”). Notwithstanding
the foregoing, Creditor agrees that if there shall have occurred and continues an event of default (however denominated) under
any of the documents evidencing or otherwise related to the Senior Debt (or if there would be such an event of default immediately
after giving effect to any such Permitted Payment), and Creditor shall have received written notice thereof at the address set
forth below Creditor’s signature block (a “Blockage Notice”) from SSVB imposing a Blockage Period as defined
below (which notice shall be deemed to have been validly served, given, delivered, and received upon the earlier of: (x) the
first business day after transmission by facsimile or hand delivery or deposit with an internationally-recognized express courier
delivery service; or (y) the first business day following a business day on which notice has been sent by electronic mail
to an authorized representative of a party, if confirmed concurrently by facsimile or promptly by any other authorized mode of
delivery as set forth herein, then no Permitted Payment shall be demanded or received by Creditor until the end of such a Blockage
Period (and Creditor shall pay to SSVB any such payments so received). In any 360 day period, no more than one (1) Blockage Period
may be imposed.

 

(b) Notwithstanding
anything to the contrary in this Agreement, upon the occurrence of an event of default under and as defined in the documents evidencing
the Subordinated Debt and subject to the rights and priorities of SSVB as described in this Agreement, Creditor may accelerate
the Subordinated Debt and may exercise all of its rights and remedies with respect to such an event of default; provided,
however, Creditor may commence such exercise of remedies and enforcement actions only after providing SSVB with
10 business days prior written notice of Creditor’s intent to commence such exercise of remedies or enforcement actions and
so long as SSVB has not delivered a Blockage Notice to Creditor prior to the expiration of such a 10 business day notice
period (which Blockage Notice, if sent by SSVB, prevents Creditor from taking any such actions during the Blockage Period); provided
further, however, any payment, distribution, security, or proceeds that Creditor receives in connection with the exercise
of any of its rights and remedies shall first be turned over to SSVB for application to the Senior Debt up to the full amount of
the Senior Debt outstanding at such time (provided that if such amounts are applied to the Senior Debt, such application shall
not result in the Senior Debt being “paid” as against the Borrower for the purposes of Creditor subrogation). Additionally,
notwithstanding anything to the contrary in this Agreement but subject to the rights and remedies of SSVB as described in this
Agreement, Creditor may accelerate the Subordinated Debt upon commencement of any insolvency, bankruptcy, receivership, custodianship,
or similar proceeding for the liquidation or dissolution of Borrower. Notice to SSVB in accordance with this paragraph shall be
sent to SSVB at the address set forth below its signature block below and shall be deemed to be validly delivered and received
in accordance with the notice provision set forth in the first paragraph of this Section 4.

 

(c) As
used in this Agreement, (i) “Blockage Period” shall mean a period of time beginning upon the delivery of the Blockage
Notice as set forth above and ending on the earlier to occur of 60 days following such date or SSVB’s written consent to
such termination and (ii) “Protective Advances” shall mean all sums up to a maximum amount of $100,000 expended by
SSVB which were determined by SSVB to be necessary or appropriate to: (1) protect the priority, validity and enforceability
of the liens and security interests which secure the Senior Debt and the instruments evidencing the Senior Debt; (2) prevent the
value of the collateral for the Senior Debt from being diminished (assuming the lack of such a payment within the necessary time
frame could potentially cause such collateral to lose value); (3) protect any of such collateral from being damaged, impaired,
mismanaged or taken; or (4) cure any default or non-performance of obligations of Borrower as required by the Loan Agreements.

 

5. If Creditor sends the Borrower a notice
of default related to the Subordinated Debt, Creditor shall use best efforts to promptly deliver a copy of the notice of default
to SSVB, but failure to do so shall not be a breach of this Agreement nor, in and of itself, affect any of Creditor’s rights
in respect of the Subordinated Debt

 

    	 	2	 

     

    

 

6. Creditor must deliver to SSVB in the
form received (except for endorsement or assignment by Creditor) any payment, distribution, security or proceeds it receives on
the Subordinated Debt other than according to this Agreement, provided that if SSVB applies such turnover to the Senior Debt, such
application shall not result in the Senior Debt being “paid” as against the Borrower for the purposes of Creditor subrogation.

 

7. These provisions remain in full force
and effect, despite Borrower's insolvency, reorganization or any case or proceeding under any bankruptcy or insolvency law, and
SSVB's claims against Borrower and Borrower’s estate will be fully paid before any payment is made to Creditor. Creditor agrees
not to encourage any other person or entity to initiate or prosecute any claim, action or other proceeding: (a) challenging the
enforceability of SSVB's claim; (b) challenging the enforceability of any liens in assets securing SSVB; (c) asserting any
claims which the Borrower may hold with respect to SSVB; or (d) seeking the equitable subordination of the Senior Debt or
any aspect of SSVB's claim.

 

8. Until the Senior Debt is paid, Creditor
irrevocably appoints SSVB as its attorney-in-fact, with power of attorney with power of substitution, in Creditor’s name
or in SSVB’s name, for SSVB’s use and benefit without notice to Creditor, to do the following in any bankruptcy, insolvency
or similar proceeding involving Borrower:

 

(a) File any claims for
the Subordinated Debt for Creditor if Creditor does not do so at least 30 days before the time to file claims expires, and

 

(b) Accept or reject any plan of reorganization
or arrangement for Creditor and vote Creditor's claims in respect of the Subordinated Debt in any way it chooses.

 

9. Creditor shall immediately affix a legend
to the instruments evidencing the Subordinated Debt stating that the instruments are subject to the terms of this Agreement. No
amendment of the documents evidencing or relating to the Subordinated Debt shall directly or indirectly modify the provisions of
this Agreement in any manner which might terminate or impair the subordination of the Subordinated Debt or the subordination of
the security interest or lien that Creditor may have in any property of Borrower. By way of example, such instruments shall not
be amended to (a) increase the rate of interest with respect to the Subordinated Debt, or (b) accelerate the payment of the
principal or interest or any other portion of the Subordinated Debt.

 

10. This Agreement is effective until the
Senior Debt Document has been terminated and all of the Senior Debt has been paid in full. If, after full payment of the Senior
Debt and termination of the Senior Debt Document, SSVB must disgorge any payments made on the Senior Debt, this Agreement and the
relative rights and priorities provided in it, will be reinstated as to all disgorged payments as though the payments had not been
made, and Creditor will immediately pay SSVB all payments received under the Subordinated Debt to the extent the payments would
have been prohibited under this Agreement. At any time without notice to Creditor, SSVB may take actions it considers appropriate
on the Senior Debt such as terminating advances, increasing the principal, extending the time of payment, increasing interest rates,
renewing, compromising or otherwise amending any documents affecting the Senior Debt and any collateral securing the Senior Debt,
and enforcing or failing to enforce any rights against Borrower or any other person. No action or inaction will impair or otherwise
affect SSVB's rights under this Agreement. Creditor waives the benefits, if any, of any statutory or common law rule that may permit
a subordinating creditor to assert any defenses of a surety or guarantor, or that may give the subordinating creditor the right
to require a senior creditor to marshal assets, and Creditor agrees that it shall not assert any such defenses or rights.

 

11. This Agreement shall be binding upon,
and shall inure to the benefit of, any heirs, successors and assigns of Creditor and SSVB. This Agreement is for Creditor’s
and SSVB’s benefit and not for the benefit of Borrower or any other party. If Borrower is refinancing any of the Senior Debt
with a new lender, upon SSVB’s request of creditor, Creditor will enter into a new subordination agreement with the new lender
on substantially the terms of this Agreement.

 

    	 	3	 

     

    

 

12. This Agreement may be executed in two
or more counterparts, each of which is an original and all of which together constitute one instrument.

 

13. (a) This Agreement shall be governed
by and construed in accordance with the laws of the State of California without giving effect to conflicts of law principles. Subject
to clause (c) of this Section 13, Creditor and SSVB submit to the jurisdiction of the state and federal courts located in Santa
Clara County, California. CREDITOR AND BANK WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN.

 

(b) 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.

 

(c) Notwithstanding the submission of the
parties to the federal and state courts located in Santa Clara County, California, the parties also submit to the non-exclusive
jurisdiction of the courts of Hong Kong.

 

14. This Agreement is the entire agreement
about this subject matter, and supersedes prior negotiations or agreements. Creditor is not relying on any representations by SSVB
or Borrower in entering into this Agreement. Creditor will keep itself informed of Borrower’s financial and other conditions.
This Agreement may be amended only by written instrument signed by Creditor and SSVB.

 

15. If there is an action to enforce the
rights of a party under this Agreement, the party prevailing will be entitled, in addition to other relief, all reasonable costs
and expenses, including reasonable attorneys’ fees, incurred in the action.

 

16. Each of the undersigned hereby represents
and warrants that (a) the execution and delivery of this Agreement and the consummation of the transactions contemplated herein
have each been duly authorized by all necessary action on the part of such party, and (b) this Agreement has been duly executed
and delivered and constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms, except
as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws of general application relating to
or affecting the enforcement of creditors’ rights or by general principles of equity.

 

[Signature page follows.]

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the undersigned have
executed this Agreement on the date first written above.

 

	“Creditor”	 	“SSVB”
	 	 	 
	PARTNERS FOR GROWTH IV, L.P.	 	SPD SILICON VALLEY BANK CO., LTD.
	 	 	 
	By: /s/ Philip Lawson           
       	 	By: /s/ Harvey Lum                 
	 	 	 
	Title: Manager, Partners for Growth IV LLC	 	Title: Vice President, head of Risk Management
	 	 	 
	Address: 1660 Tiburon Blvd, Suite D

                                           Tiburon, CA, USA 94920
	 	Address: 21/F, Block B, Baoland Plaza,

                                           No. 588 Dalian Road, Shanghai, 200082

	 	 	 
	Telephone (415) 793-2883	 	Telephone (86 21) 3596 3068
	 	 	 
	Facsimile (415) 781-0510	 	Facsimile (86 21) 3596 3099
	 	 	 
	Email: notices@pfgrowth.com; geoff@pfgrowth.com	 	Email: hlum@spd-svbank.com

  

 

[Signature page to Subordination Agreement]

    	 	5

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