Document:

Exhibit 10.5

 

SHAREHOLDER
PLEDGE AGREEMENT

 

SHAREHOLDER
PLEDGE AGREEMENT (this “Agreement”), dated as of April __, 2019, made by Feng Zhou Management Limited,
a British Virgin Islands company wholly owned by Feng Zhou with the address at Sertus Chambers PO Box 905 Quisticky Building Road
Town Tortola British Virgin Islands (collectively, the “Pledgor”), China SXT Pharmaceuticals, Inc., a company
organized under the laws of the British Virgin Islands with offices located at 178 Taidong Rd North, Taizhou, Jiangsu, China (the
“Company”) and the secured parties listed on the signature pages hereof (collectively, the “Secured
Parties” and each, individually, a “Secured Party”).

 

W I T N E S S E T H:

 

WHEREAS,
the Company and each of the Secured Parties are parties to party to the Securities Purchase Agreement, dated as of April 16, 2019
(as amended, restated or otherwise modified from time to time, the “Securities Purchase Agreement”), pursuant
to which the Company has agreed to sell, and the Secured Parties has agreed to purchase, the Notes (as defined in the Securities
Purchase Agreement) and the Warrants (as defined Securities Purchase Agreement); and

 

WHEREAS,
in order to induce the Secured Parties to purchase, severally and not jointly, the Notes and Warrants as provided for in the Securities
Purchase Agreement, the Pledgor has agreed to grant each Secured Party a separate, continuing security interest in and to the
Pledged Collateral (as defined below) in order to secure the prompt and complete payment, observance and performance of the Secured
Obligations (as defined below).

 

NOW,
THEREFORE, for and in consideration of the recitals made above and other good and valuable consideration, the receipt, sufficiency
and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION
1. Definitions and Rules of Interpretation.

 

(a)
Definitions. Reference is made to the Securities Purchase Agreement and the Notes for a statement of terms thereof. All
terms used in this Agreement which are defined in the Securities Purchase Agreement or the Notes or in Article 8 or Article 9
of the Uniform Commercial Code as in effect from time to time in the State of New York (the “Code”) and which
are not otherwise defined herein shall have the same meanings herein as set forth therein; provided, that terms used herein
which are defined in the Code as in effect in the State of New York on the date hereof shall continue to have the same meaning
notwithstanding any replacement or amendment of such statute except as the Secured Parties holding a majority of the Secured Obligations
then outstanding (the “Required Holders”) may otherwise determine. In the event that any such term is defined
in both the Securities Purchase Agreement, the Notes and the Code, the definition of such term in the Securities Purchase Agreement
or the Notes shall control.

 

(b)
Rules of Interpretation. Except as otherwise expressly provided in this Agreement, the following rules of interpretation
apply to this Agreement: (i) the singular includes the plural and the plural includes the singular; (ii) “or” and
“any” are not exclusive and “include” and “including” are not limiting; (iii) a reference
to any agreement or other contract includes permitted supplements and amendments; (iv) a reference to a law includes any amendment
or modification to such law and any rules or regulations issued thereunder; (v) a reference to a person includes its permitted
successors and assigns; and (vi) a reference in this Agreement to an Article, Section, Annex, Exhibit or Schedule is to the Article,
Section, Annex, Exhibit or Schedule of this Agreement.

 

     

     

    

 

SECTION
2. Pledge and Grant of Security Interest. As collateral security for all of the Secured Obligations (as defined in Section
3 hereof), the Pledgor hereby pledges and assigns and grants to each Secured Party a separate, continuing security interest in,
and Lien on, all of his right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)
The Pledgor’s Ordinary Shares of the Company as set forth in Schedule I (as such Schedule is amended from time to
time in accordance with the terms hereof), and all future, issued and outstanding share capital, or other equity or investment
securities of, or partnership, membership, or joint venture interests in, the Company that are required to be pledged from time
to time in accordance with the terms hereof including without limitation, any Additional Pledged Shares required to be pledged
in accordance with Section 4(a) of this Agreement, whether now owned or hereafter acquired by the Pledgor and whether or not evidenced
or represented by any share certificate, certificated security or other instrument, together with the certificates representing
such equity interests, all options and other rights, contractual or otherwise, in respect thereof and all dividends, distributions,
cash, instruments, investment property and any other property (including, but not limited to, any share dividend and any distribution
in connection with a share split) from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the foregoing and all cash and noncash proceeds thereof (collectively, the “Pledged Shares”);

 

(b)
all present and future increases, profits, combinations, reclassifications, and substitutes and replacements for all or part of
the foregoing Pledged Shares heretofore described;

 

(c)
all investment property, financial assets, securities, share capital, other equity interests, share options and commodity contracts
of the Pledgor, all notes, debentures, bonds, promissory notes or other evidences of indebtedness payable or owing to the Pledgor,
and all other assets now or hereafter received or receivable with respect to the foregoing;

 

(d)
all securities entitlements of the Pledgor in any and all of the foregoing; and

 

(e)
all proceeds (including proceeds of proceeds) of any and all of the foregoing;

 

in
each case, whether now owned or hereafter acquired by the Pledgor and howsoever his interest therein may arise or appear (whether
by ownership, security interest, Lien, claim or otherwise).

 

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SECTION
3. Security for Secured Obligations. The security interest created hereby in the Pledged Collateral constitutes continuing
collateral security for the prompt payment and due performance and observance of all of the following Secured Obligations (the
“Secured Obligations”):

 

(a)
all liabilities, obligations, or undertakings owing by the Company to the Secured Parties of any kind or description arising out
of or outstanding under, advanced or issued pursuant to, or evidenced by the Securities Purchase Agreement, the Notes, the Warrants
or any of the other Transaction Documents, and

 

(b)
all liabilities, obligations, or undertakings owing by Pledgor to the Secured Parties under this Agreement, in each case with
respect to the foregoing liabilities, obligations or undertakings, irrespective of whether for the payment of money, whether direct
or indirect, absolute or contingent, liquidated or unliquidated, determined or undetermined, due or to become due, voluntary or
involuntary, whether now existing or hereafter arising, and including all interest, costs, indemnities, fees (including attorneys
fees), and expenses (including interest, costs, indemnities, fees, and expenses that, but for the provisions of the Bankruptcy
Code, would have accrued irrespective of whether a claim therefor is allowed) and any and all other amounts which Company or Pledgor
is required to pay pursuant to any of the foregoing, by law, or otherwise.

 

SECTION
4. Delivery of the Pledged Collateral.

 

(a)
The fair market value of the Pledged Shares held by any Secured Party as of any time of determination shall equal the product
of (i) the aggregate number of Ordinary Shares pledged to such Secured Party hereunder and (ii) the quotient of (x) the sum of
the two (2) lowest VWAP (as defined in the Notes) of the Ordinary Shares during the five (5) Trading Day period immediately prior
to such time of determination, divided by (y) two (2) (subject to adjustment for any share splits, share dividends, share combinations,
recapitalizations and similar events during such measuring period) (the “Pledged Share Value”) and shall at
all times equal or exceed the aggregate principal amount outstanding under the Note (whether or not then due and payable) of such
Secured Party. The Pledgor shall, within five business days following the receipt of notice from such Secured Party that the Pledged
Share Value is less than the aggregate principal amount outstanding under the Note of such Secured Party, deliver additional shares
(“Additional Pledged Shares”) to such Secured Party in accordance with the terms of this Section 4 such
that the Pledged Share Value (taking into account the fair market value of such Additional Pledged Shares) shall be no less than
the aggregate principal amount outstanding under the Note.

 

(b)
In accordance with the terms and conditions set forth in the Securities Purchase Agreement, the Pledgor shall deliver to each
of the Secured Parties as of date hereof a certificate with respect to the Pledged Shares to be initially held by such Security
Party in such amounts as set forth on Schedule I attached hereto. As of any given date, with respect to all other promissory
notes, certificates and instruments constituting Pledged Collateral from time to time or required to be pledged to the Secured
Parties pursuant to the terms of this Agreement or the Securities Purchase Agreement, including without limitation, any Additional
Pledged Shares required to be pledged in accordance with Section 4(a) above (collectively the “Additional Collateral”)
such amount equal to a fraction (i) the numerator of which is the principal amount of such Secured Party’s Note on such
given date and (ii) the denominator of which is the aggregate principal amount of all Notes outstanding as of such given date
(the “Secured Party Pro Rata Amount”) of such Additional Collateral shall be delivered to each Secured Party
promptly upon receipt thereof by or on behalf of the Pledgor. All such promissory notes, certificates and instruments shall be
held by each Secured Party pursuant hereto and shall be delivered in suitable form for transfer by delivery or shall be accompanied
by duly executed instruments of transfer or assignment or undated share powers executed in blank, all in form and substance reasonably
satisfactory to the Secured Parties. If any Pledged Collateral consists of uncertificated securities, unless the immediately following
sentence is applicable thereto, the Pledgor shall cause the applicable Secured Party (or its designated custodian, nominee or
other designee) to become the registered holder thereof, or cause each issuer of such securities to agree that it will comply
with instructions originated by the applicable Secured Party (or its designated custodian, nominee or other designee), with respect
to such securities without further consent by the Pledgor. If any Pledged Collateral consists of securities entitlements, the
Pledgor shall transfer the applicable Secured Party Pro Rata Amount of such securities entitlements to each Secured Party (or
its designated custodian, nominee or other designee) or cause the applicable securities intermediary to agree that it will comply
with entitlement orders by such Secured Party (or its designated custodian, nominee or other designee) without further consent
by the Pledgor.

 

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(c)
Promptly upon the receipt by the Pledgor of any Additional Collateral and contemporaneously with any delivery of Additional Pledged
Shares in accordance with Section 4(a), a Pledge Amendment, duly executed by the Pledgor, in substantially the form of Annex
I hereto (a “Pledge Amendment”), shall be delivered to each Secured Party, in respect of the Additional
Collateral which is or are to be pledged pursuant to this Agreement and the Securities Purchase Agreement, which Pledge Amendment
shall from and after delivery thereof constitute part of Schedule I hereto. The Pledgor hereby authorizes each Secured
Party to attach each Pledge Amendment to this Agreement and agrees that all promissory notes, certificates or instruments listed
on any Pledge Amendment shall for all purposes hereunder constitute Pledged Collateral and the Pledgor shall be deemed upon delivery
thereof to have made the representations and warranties set forth in Section 6 with respect to such Additional Collateral.

 

(d)
If the Pledgor shall receive, by virtue of the Pledgor’s being or having been an owner of any Pledged Collateral, any (i)
share certificate (including, without limitation, any certificate representing a share dividend or distribution in connection
with any increase or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares, share
split, spin-off or split-off), promissory note or other instrument, (ii) option or right, whether as an addition to, substitution
for, or in exchange for, any Pledged Collateral, or otherwise, (iii) dividends payable in cash (except such dividends permitted
to be retained by the Pledgor pursuant to Section 8 hereof) or in securities or other property or (iv) dividends, distributions,
cash, instruments, investment property and other property in connection with a partial or total liquidation or dissolution or
in connection with a reduction of capital, capital surplus or paid-in surplus (collectively, the “Distribution Collateral”),
the Pledgor shall hold such Distribution Collateral in trust for the benefit of the Secured Parties, shall segregate it from the
Pledgor’s other property and shall deliver the applicable Secured Party Pro Rata Amount of such Distribution Collateral
forthwith to each Secured Party in the exact form received, with any necessary endorsement and/or appropriate share powers duly
executed in blank, to be held by the each Secured Party as Pledged Collateral and as further collateral security for the Secured
Obligations.

 

(e)
So long as no Event of Default (as defined in the Notes) or breach of any covenant in any Transaction Document (as defined in
the Securities Purchase Agreement) has occurred or is continuing, on each six month anniversary of the Closing Date (as defined
in the Securities Purchase Agreement) each Secured Party shall release the lesser of (x) 1/3rd of such aggregate number
of Pledge Shares initially pledged by Pledgor to such Secured Party hereunder and (y) the aggregate number of Pledge Shares then
held by such Secured Party, if any.

 

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SECTION
5. Taxes.

 

(a)
All payments made by the Pledgor hereunder or under any other Transaction Document shall be made in accordance with the terms
of the respective Transaction Document and shall be made without set-off, counterclaim, deduction or other defense. All such payments
shall be made free and clear of and without deduction for any present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding taxes imposed on the net income of any Secured Party
by the jurisdiction in which such Secured Party is organized or where it has its principal lending office (all such nonexcluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities, collectively or individually, “Taxes”).
If the Pledgor shall be required to deduct or to withhold any Taxes from or in respect of any amount payable hereunder or under
any other Transaction Document:

 

(i)
the amount so payable shall be increased to the extent necessary so that after making all required deductions and withholdings
(including Taxes on amounts payable to any Secured Party pursuant to this sentence) each Secured Party receives an amount equal
to the sum it would have received had no such deduction or withholding been made,

 

(ii)
the Pledgor shall make such deduction or withholding,

 

(iii)
the Pledgor shall pay the full amount deducted or withheld to the relevant taxation authority in accordance with applicable law,
and

 

(iv)
as promptly as possible thereafter, the Pledgor shall send the Secured Parties an official receipt (or, if an official receipt
is not available, such other documentation as shall be satisfactory to the Secured Parties, as the case may be) showing payment. 
In addition, the Pledgor agrees to pay any present or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies that arise from any payment made hereunder or from the execution, delivery, registration or enforcement
of, or otherwise with respect to, this Agreement or any other Transaction Document (collectively, “Other Taxes”).

 

(b)
The Pledgor hereby indemnifies and agrees to hold each Secured Party (each an “Indemnified Party”) harmless
from and against Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any jurisdiction on
amounts payable under this Section 5) paid by any Indemnified Party  as a result of any payment made hereunder
or from the execution, delivery, registration or enforcement of, or otherwise with respect to, this Agreement or any other Transaction
Document, and any liability (including penalties, interest and expenses for nonpayment, late payment or otherwise) arising therefrom
or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted.  This indemnification
shall be paid within 30 days from the date on which such Secured Party makes written demand therefor, which demand shall identify
the nature and amount of such Taxes or Other Taxes.

 

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(c)
If the Pledgor fails to perform any of its obligations under this Section 5, the Pledgor shall indemnify each Secured
Party for any taxes, interest or penalties that may become payable as a result of any such failure. The obligations of the Pledgor
under this Section 5 shall survive the termination of this Pledge Agreement and the payment of the Obligations and
all other amounts payable hereunder.

 

SECTION
6. Representations and Warranties. The Pledgor represents and warrants as follows:

 

(a)
The Pledgor has all requisite power and authority to execute, deliver and perform its obligations under this Agreement. This Agreement
has been duly executed and delivered by the Pledgor and constitutes a legal, valid and binding obligation of the Pledgor, enforceable
against the Pledgor in accordance with its terms, except (a) as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or similar laws now or hereafter in effect relating to, or affecting generally,
the enforcement of creditors’ and other obligees’ rights and (b) where the remedy of specific performance or other
forms of equitable relief may be subject to certain equitable defenses and principles and to the discretion of the court before
which the proceeding may be brought.

 

(b)
The Pledged Shares have been duly authorized and validly issued, are fully paid and nonassessable and the holders thereof are
not entitled to any preemptive first refusal or other similar rights. All other shares constituting Pledged Collateral will be,
when issued, duly authorized and validly issued, fully paid and nonassessable.

 

(c)
The Pledgor is and will be at all times the legal and beneficial owner of the Pledged Collateral free and clear of any Lien, security
interest, option or other charge or encumbrance except for the security interest and Lien created by this Agreement or any Permitted
Liens.

 

(d)
The exercise by any Secured Party of any of its rights and remedies hereunder will not contravene any law or any contractual restriction
binding on or affecting the Pledgor or any of the properties of the Pledgor and will not result in or require the creation of
any Lien, security interest or other charge or encumbrance upon or with respect to any of the properties of the Pledgor other
than pursuant to this Agreement and the other Transaction Documents, as defined in the Securities Purchase Agreement, the “Transaction
Documents”).

 

(e)
No authorization or approval or other action by, and no notice to or filing with, any governmental authority is required to be
obtained or made by the Pledgor for (i) the due execution, delivery and performance by the Pledgor of this Agreement, (ii) the
grant by the Pledgor, or the perfection, of the security interest and Lien purported to be created hereby in the Pledged Collateral
or (iii) the exercise by any Secured Party of any of its rights and remedies hereunder, except as may be required in connection
with any sale of any Pledged Collateral by laws affecting the offering and sale of securities generally.

 

(f)
This Agreement creates a valid security interest and Lien in favor of the Secured Parties in the Pledged Collateral, as security
for the Secured Obligations. Each Secured Party having possession of the certificates representing the Pledged Shares and all
other certificates, instruments and cash constituting Pledged Collateral from time to time results in the perfection of such security
interest and Lien. Such security interest and Lien is, or in the case of Pledged Collateral in which the Pledgor obtains rights
after the date hereof, will be, a perfected Lien, subject only to the Permitted Liens. All action necessary or desirable to perfect
and protect such security interest and Lien has been duly taken, except for such Secured Party’s having possession of certificates,
instruments and cash constituting Pledged Collateral after the date hereof.

 

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SECTION
7. Covenants as to the Pledged Collateral. So long as any Secured Obligations shall remain outstanding, the Pledgor will,
unless the Required Holders, shall otherwise consent in writing:

 

(a)
keep adequate records concerning the Pledged Collateral and permit the Secured Parties, or any designees or representatives thereof
at any time or from time to time during reasonable hours after prior written notice to examine and make copies of and abstracts
from such records;

 

(b)
at the Pledgor’s expense, promptly deliver to each Secured Party a copy of each material notice or other material communication
received by the Pledgor in respect of the Pledged Collateral;

 

(c)
at the Pledgor’s expense, defend each Secured Party’s right, title and security interest in and to the Pledged Collateral
against the claims of any Person;

 

(d)
at the Pledgor’s expense, at any time and from time to time, promptly execute and deliver all further instruments and documents
and take all further action that may be necessary or desirable or that any Secured Party may reasonably request in order to (i) perfect
and protect, or maintain the perfection of, the security interest and Lien purported to be created hereby, (ii) enable such Secured
Party to exercise and enforce its rights and remedies hereunder in respect of the Pledged Collateral or (iii) otherwise effect
the purposes of this Agreement, including, without limitation, delivering to such Secured Party irrevocable proxies in respect
of the Pledged Collateral;

 

(e)
not sell, assign (by operation of law or otherwise), exchange or otherwise dispose of any Pledged Collateral or any interest therein
except as expressly permitted by the Securities Purchase Agreement or the Notes;

 

(f)
not create or suffer to exist any Lien, upon or with respect to any Pledged Collateral except for the Lien created hereby or for
any Permitted Lien;

 

(g)
not make or consent to any amendment or other modification or waiver with respect to any Pledged Collateral or enter into any
agreement or permit to exist any restriction with respect to any Pledged Collateral;

 

(h)
except as expressly permitted by the Securities Purchase Agreement, not permit the issuance of (i) any additional shares of any
class of share capital, partnership interests, member interests or other equity of the Company, (ii) any securities convertible
voluntarily by the holder thereof or automatically upon the occurrence or non-occurrence of any event or condition into, or exchangeable
for, any such shares of share capital or (iii) any warrants, options, contracts or other commitments entitling any Person to purchase
or otherwise acquire any such shares of share capital;

 

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(i)
not issue any share certificate, certificated security or other instrument to evidence or represent any share capital, any partnership
interest or membership interest described in Schedule I hereto; and

 

(j)
not take or fail to take any action which would in any manner impair the validity or enforceability of each Secured Party’s
security interest in and Lien on any Pledged Collateral.

 

SECTION
8. Voting Rights, Dividends, Etc. in Respect of the Pledged Collateral.

 

(a)
So long as no Event of Default shall have occurred and be continuing:

 

(i)
the Pledgor may exercise any and all voting and other consensual rights pertaining to any Pledged Collateral for any purpose not
inconsistent with the terms of this Agreement, the Securities Purchase Agreement or the Notes;

 

(ii)
the Pledgor may receive and retain any and all dividends, interest or other distributions paid in respect of the Pledged Collateral
to the extent permitted by the Securities Purchase Agreement; provided, however, that any and all (A) dividends
and interest paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise
distributed in respect of or in exchange for, any Pledged Collateral, (B) dividends and other distributions paid or payable in
cash in respect of any Pledged Collateral in connection with a partial or total liquidation or dissolution or in connection with
a reduction of capital, capital surplus or paid-in surplus, and (C) cash paid, payable or otherwise distributed in redemption
of, or in exchange for, any Pledged Collateral, together with any dividend, distribution, interest or other payment which at the
time of such dividend, distribution, interest or other payment was not permitted by the Securities Purchase Agreement, shall be,
and shall forthwith be delivered to each Secured Party in proportion to their Secured Party Pro Rata Amount to hold as, Pledged
Collateral and shall, if received by the Pledgor, be received in trust for the benefit of such Secured Party, shall be segregated
from the other property or funds of the Pledgor, and shall be forthwith delivered to such Secured Party in the exact form received
with any necessary indorsement and/or appropriate share powers duly executed in blank, to be held by such Secured Party as Pledged
Collateral and as further collateral security for the Secured Obligations; and

 

(iii)
each Secured Party will execute and deliver (or cause to be executed and delivered) to the Pledgor all such proxies and other
instruments as the Pledgor may reasonably request for the purpose of enabling the Pledgor to exercise the voting and other rights
which it is entitled to exercise pursuant to paragraph (i) of this Section 8(a) and to receive the dividends, distributions,
interest and other payments which it is authorized to receive and retain pursuant to paragraph (ii) of this Section 8(a),
in each case, to the extent that such Secured Party has possession of such Pledged Collateral.

 

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(b)
Upon the occurrence and during the continuance of an Event of Default (as defined in the Notes) (an “Event of Default”):

 

(i)
all rights of the Pledgor to exercise the voting and other consensual rights which he would otherwise be entitled to exercise
pursuant to paragraph (i) of subsection (a) of this Section 8, and to receive the dividends, distributions, interest
and other payments which he would otherwise be authorized to receive and retain pursuant to paragraph (ii) of subsection
(a) of this Section 8, shall cease, and all such rights shall thereupon become vested in each Secured Party which
shall thereupon have the sole right to exercise such voting and other consensual rights and to receive and hold as Pledged Collateral
such dividends, distributions, interest and other payments;

 

(ii)
without limiting the generality of the foregoing, each Secured Party may at his option exercise any and all rights of conversion,
exchange, subscription or any other rights, privileges or options pertaining to any of the Pledged Collateral as if it were the
absolute owner thereof, including, without limitation, the right to exchange, in its discretion, any and all of the Pledged Collateral
upon the merger, consolidation, reorganization, recapitalization or other adjustment of any issuer of the Pledged Collateral or
upon the exercise by any issuer of the Pledged Collateral of any right, privilege or option pertaining to any Pledged Collateral,
and, in connection therewith, to deposit and deliver any and all of the Pledged Collateral with any committee, depository, transfer
agent, registrar or other designated agent upon such terms and conditions as the Secured Parties may determine; and

 

(iii)
all dividends, distributions, interest and other payments which are received by the Pledgor contrary to the provisions of paragraph
(i) of this Section 8(b) shall be received in trust for the benefit of the Secured Parties, shall be segregated from other
funds of the Pledgor, and shall be forthwith paid over to the Secured Parties in proportion to the applicable Secured Party Pro
Rata Amount as Pledged Collateral in the exact form received with any necessary indorsement and/or appropriate share powers duly
executed in blank, to be held by such Secured Party as Pledged Collateral and as further collateral security for the Secured Obligations.

 

SECTION
9. Additional Provisions Concerning the Pledged Collateral.

 

(a)
The Pledgor hereby (i) authorizes the Secured Parties to file one or more financing or continuation statements, and amendments
thereto, relating to the Pledged Collateral, without the signature of the Pledgor where permitted by law, (ii) ratifies such authorization
to the extent that the Secured Parties has filed any such financing or continuation statements, or amendments thereto, without
the signature of the Pledgor prior to the date hereof and (iii) authorizes each Secured Party to execute any agreements, instruments
or other documents in the Pledgor’s name and to file such agreements, instruments or other documents that are related to
the security interest and Lien of each Secured Party in the Pledged Collateral or as provided under Article 8 or Article 9 of
the Code or any other applicable uniform commercial code or other law in any appropriate filing office. Not withstanding anything
to the contrary contained herein, no Secured Party shall have any responsibility for the preparing, recording, filing, re-recording,
or re-filing of any financing statement, continuation statement or other instrument in any public office.

 

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(b)
The Pledgor hereby irrevocably appoints each Secured Party as his attorney-in-fact and proxy, with full authority in the place
and stead and in his name or otherwise, from time to time in the Secured Parties’ discretion to take any action and to execute
any instrument which the Secured Parties may deem necessary or advisable to accomplish the purposes of this Agreement (subject
to the rights of the Pledgor under Section 8(a) hereof), including, without limitation, to receive, indorse and collect
all instruments made payable to the Pledgor representing any dividend, interest payment or other distribution in respect of any
Pledged Collateral and to give full discharge for the same. This power is coupled with an interest and is irrevocable until the
termination of this Agreement.

 

(c)
If the Pledgor fails to perform any agreement or obligation contained herein, each Secured Party may perform, or cause performance
of, such agreement or obligation, and the expenses of such Secured Party incurred in connection therewith shall be payable by
the Pledgor pursuant to Section 11 hereof and shall be secured by the Pledged Collateral.

 

(d)
Other than the exercise of reasonable care to assure the safe custody of the Pledged Collateral while held hereunder, no Secured
Party shall have any duty or liability to preserve rights pertaining thereto and shall be relieved of all responsibility for the
Pledged Collateral upon surrendering it or tendering surrender of it to any of the Pledgor. Each Secured Party shall be deemed
to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral
is accorded treatment substantially equal to that which such Secured Party accords its own property, it being understood that
no Secured Party shall have responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relating to any Pledged Collateral, whether or not such Secured Party has or is deemed to
have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any
Pledged Collateral. Each Secured Party agrees that, with respect to any Pledged Collateral at any time or times in its possession
and in which any other Secured Party has a Lien, the Secured Party in possession of any such Pledged Collateral shall be the bailee
of each other Secured Party solely for purposes of perfecting (to the extent not otherwise perfected) each other Secured Party’s
Lien in such Pledged Collateral, provided that no Secured Party shall be obligated to obtain or retain possession of any such
Pledged Collateral. Without limiting the generality of the foregoing, Secured Parties and Pledgor hereby agree that any Secured
Party that is in possession of any Pledged Collateral at such time as the Secured Obligations owing to such Secured Party have
been paid in full may deliver such Pledged Collateral to the Company or, if requested by any Secured Party prior to such delivery,
may deliver such Pledged Collateral (unless otherwise restricted by applicable law or court order and subject in all events to
the receipt of an indemnification of all liabilities arising from such delivery) to the requesting Secured Party, without recourse
to or representation or warranty by the Secured Party in such possession. No later than the third business day after the Company’s
receipt of such Pledged Collateral, the Company shall deliver to each Secured Party with Secured Obligations then outstanding
the applicable Secured Party Pro Rata Amount of such Pledged Collateral.

 

(e)
The powers conferred on each Secured Party hereunder are solely to protect its interest in the Pledged Collateral and shall not
impose any duty upon it to exercise any such powers. Except for the safe custody of any Pledged Collateral in its possession and
the accounting for monies actually received by it hereunder, no Secured Party shall have any duty as to any Pledged Collateral
or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Pledged
Collateral.

 

    10

     

    

 

(f)
Upon the occurrence and during the continuation of any Default or Event of Default, each Secured Party may at any time in its
discretion (i) without notice to the Pledgor, transfer or register in the name of such Secured Party or any of its nominees any
or all of the Pledged Collateral, subject only to the revocable rights of the Pledgor under Section 8(a) hereof, and (ii)
exchange certificates or instruments constituting Pledged Collateral for certificates or instruments of smaller or larger denominations.

 

SECTION
10. Remedies Upon Default. If any Event of Default shall have occurred and be continuing:

 

(a)
Each Secured Party may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein
or otherwise available to it, all of the rights and remedies of a secured party on default under the Code then in effect in the
State of New York; and without limiting the generality of the foregoing and without notice except as specified below, sell the
Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange or broker’s board
or elsewhere, at such price or prices and on such other terms as such Secured Party may deem commercially reasonable. The Pledgor
agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ notice to any of the Pledgor
of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.
No Secured Party shall be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given. Each
Secured Party may adjourn any public or private sale by such Secured Party from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(b)
The Pledgor recognizes that it may be impracticable to effect a public sale of all or any part of the Pledged Shares or any other
securities constituting Pledged Collateral and that each Secured Party may, therefore, determine to make one or more private sales
of any such securities to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such
securities for its own account, for investment and not with a view to the distribution or resale thereof. The Pledgor acknowledges
that any such private sale may be at prices and on terms less favorable to the seller than the prices and other terms which might
have been obtained at a public sale and, notwithstanding the foregoing, agrees that such private sales shall be deemed to have
been made in a commercially reasonable manner and that no Secured Party shall have any obligation to delay sale of any such securities
for the period of time necessary to permit the issuer of such securities to register such securities for public sale under the
Securities Act of 1933, as amended (the “Securities Act”). The Pledgor further acknowledges and agrees that
any offer to sell such securities which has been (i) publicly advertised on a bona fide basis in a newspaper or other publication
of general circulation in the financial community of New York, New York (to the extent that such an offer may be so advertised
without prior registration under the Securities Act) or (ii) made privately in the manner described above to not less than fifteen
(15) bona fide offerees shall be deemed to involve a “public disposition” for the purposes of Section 9-610
of the Code (or any successor or similar, applicable statutory provision) as then in effect in the State of New York, notwithstanding
that such sale may not constitute a “public offering” under the Securities Act, and that any Secured Party may, in
such event, bid for the purchase of such securities.

 

    11

     

    

 

(c)
Any cash held by any Secured Party as Pledged Collateral and all cash proceeds received by such Secured Party in respect of any
sale of, collection from, or other realization upon, all or any part of the Pledged Collateral shall be applied (after payment
of any amounts payable to such Secured Party pursuant to Section 11 hereof) by such Secured Party against, all or any part
of the Secured Obligations in such order as such Secured Party shall elect consistent with the provisions of the Securities Purchase
Agreement.

 

(d)
In the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which any Secured
Party is legally entitled, the Pledgor shall be jointly and severally liable for the deficiency, together with interest thereon
at the highest rate specified in the Notes for interest on overdue principal thereof or such other rate as shall be fixed by applicable
law, together with the costs of collection and the reasonable fees, costs and expenses of any attorneys employed by such Secured
Party to collect such deficiency.

 

SECTION
11. Indemnity and Expenses.

 

(a)
The Pledgor hereby agrees to indemnify and hold each Secured Party (and all of its officers, directors, employees, attorneys,
consultants) harmless from and against any and all claims, damages, losses, liabilities, obligations, penalties, fees, costs and
expenses (including, without limitation, reasonable legal fees and disbursements of counsel) to the extent that they arise out
of or otherwise result from this Agreement (including, without limitation, enforcement of this Agreement), except claims, losses
or liabilities arising or resulting directly from such Person’s gross negligence or willful misconduct as determined by
a court of competent jurisdiction.

 

(b)
The Pledgor shall be obligated for, and will upon demand pay to each Secured Party the reasonable amount of any and all out-of-pocket
costs and expenses, including the reasonable fees and disbursements of such Secured Party’s counsel and of any experts which
such Secured Party may incur in connection with (i) the preparation, negotiation, execution, delivery, recordation, administration,
amendment, waiver or other modification or termination of this Agreement, (ii) the custody, preservation, use or operation of,
or the sale of, collection from, or other realization upon, any Pledged Collateral, (iii) the exercise or enforcement of any of
the rights of such Secured Party hereunder, or (iv) the failure by the Pledgor to perform or observe any of the provisions hereof.

 

SECTION
12. Notices, Etc. All notices and other communications provided for hereunder shall be in writing and shall be mailed (by
certified mail, postage prepaid and return receipt requested), sent by Federal Express or other recognized courier service (return
receipt requested), telecopied or delivered, if to the Pledgor, to him at the address specified in the Securities Purchase Agreement
or if to the Secured Parties, to it at the address specified in the Securities Purchase Agreement; or as to either such Person
at such other address as shall be designated by such Person in a written notice to such other Person complying as to delivery
with the terms of this Section 12. All such notices and other communications shall be effective (i) if sent by certified mail,
postage prepaid, return receipt requested, when received or three (3) Business Days after mailing, whichever first occurs, (ii)
if telecopied, when transmitted and confirmation is received, provided same is on a Business Day and, if not, on the next Business
Day or (iii) if delivered or sent by Federal Express or other recognized courier service (return receipt requested), upon delivery,
provided same is on a Business Day and, if not, on the next Business Day.

 

    12

     

    

 

SECTION
13. Security Interest Absolute. All rights of the Secured Parties, all Liens and all obligations of the Pledgor hereunder
shall be absolute and unconditional irrespective of: (i) any lack of validity or enforceability of the Securities Purchase Agreement,
the Notes or any other Transaction Document, (ii) any change in the time, manner or place of payment of, or in any other term
in respect of, all or any of the Secured Obligations, or any other amendment or waiver of or consent to any departure from the
Securities Purchase Agreement, the Notes or any other Transaction Document, (iii) any exchange or release of, or non-perfection
of any Lien on any Collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or
any of the Secured Obligations, or (iv) any other circumstance which might otherwise constitute a defense available to, or a discharge
of, the Pledgor in respect of the Secured Obligations (other than the payment in full of the Secured Obligations or complete conversion
to equity securities of the Company of all indebtedness obligations owed by the Company to the Secured Parties under the Notes
(including, without limitation, all principal, interest and fees related to the Notes)). All authorizations and agencies contained
herein with respect to any of the Pledged Collateral are irrevocable and powers coupled with an interest.

 

SECTION
14. Beneficial Ownership. Each Secured Party shall not have the right to exercise its rights under this Agreement and any
such exercise shall be null and void and treated as if never made, to the extent that after giving effect to such exercise, such
applicable Secured Party together with its other Attribution Parties collectively would beneficially own in excess of 4.99% (the
“Maximum Percentage”) of the Ordinary Shares outstanding immediately after giving effect to such exercise.
For purposes of the foregoing sentence, the aggregate number of Ordinary Shares beneficially owned by a Secured Party and its
other Attribution Parties shall include the number of Ordinary Shares held by such Secured Party and all its other Attribution
Parties plus the number of Ordinary Shares to be acquired by such Secured Party with respect to which the determination of such
sentence is being made, but shall exclude the remaining Ordinary Shares pledged to such Secured Party that are not then being
acquired upon such Secured Party’s exercise of its right hereunder and any Ordinary Shares which would be issuable upon
(A) conversion of the remaining, nonconverted portion of the Note beneficially owned by such Secured Party or any its other Attribution
Parties, (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including,
without limitation, any convertible notes or convertible preferred shares or warrants, including, without limitation, the Warrants)
beneficially owned by such Secured Party or any its other Attribution Party subject to a limitation on conversion or exercise
analogous to the limitation contained in this Section 14. For purposes of this Section 14, beneficial ownership shall be calculated
in accordance with Section 13(d) of the 1934 Act. For purposes of determining the number of outstanding Ordinary Shares a Secured
Party may acquire upon exercise of its rights hereunder at any time of determination without exceeding the Maximum Percentage,
each Secured Party may rely on the number of outstanding Ordinary Shares as reflected in (x) the Company’s most recent Annual
Report on Form 20-F, Report of Foreign Issuer on Form 6-K or other public filing with the SEC, as the case may be, (y) a more
recent public announcement by the Company or (z) any other written notice by the Company or the Transfer Agent, if any, setting
forth the number of Ordinary Shares outstanding (the “Reported Outstanding Share Number”). For any reason at
any time, upon the written or oral request of a Secured Party, the Company shall within one (1) Business Day confirm orally and
in writing or by electronic mail to such Secured party the number of Ordinary Shares then outstanding. In the event that the exercise
of rights by a Secured Party hereunder and transfer of Ordinary Shares from the Pledgor to such Secured Party hereunder would
result in such Secured Party and its other Attribution Parties being deemed to beneficially own, in the aggregate, more than the
Maximum Percentage of the number of outstanding Ordinary Shares (as determined under Section 13(d) of the 1934 Act), the transfer
from the Pledgor to such Secured Party of such number of shares by which such Secured Party’s and its other Attribution
Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be
deemed null and void and shall be cancelled ab initio, and such Secured Party shall not have the power to vote or to transfer
the Excess Shares. Upon delivery of a written notice to the Company, a Secured Party may from time to time increase (with such
increase not effective until the sixty-first (61st) day after delivery of such notice) or decrease the Maximum Percentage to any
other percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage
will not be effective until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase
or decrease will apply only to such Secured Party and its other Attribution Parties and not to any other Secured Party that is
not an Attribution Party of such Secured Party. For purposes of clarity, the Ordinary Shares in excess of the Maximum Percentage
shall not be deemed to be beneficially owned by such Secured Party for any purpose including for purposes of Section 13(d) or
Rule 16a-1(a)(1) of the 1934 Act. No prior inability of a Secured Party to exercise its rights hereunder and acquire any Ordinary
Shares from the Pledger to such Secured Party pursuant to this paragraph shall have any effect on the applicability of the provisions
of this paragraph with respect to any subsequent determination of transferability. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this Section 14 to the extent necessary to correct
this paragraph (or any portion of this paragraph) which may be defective or inconsistent with the intended beneficial ownership
limitation contained in this Section 14 or to make changes or supplements necessary or desirable to properly give effect to such
limitation. The limitation contained in this paragraph may not be waived and shall apply to a successor Secured Party.

 

    13

     

    

 

SECTION
15. Acknowledgment.

 

(a)
Each Secured Party hereby agrees and acknowledges that no other Secured Party has agreed to act for it as an administrative or
collateral agent, and each Secured Party is and shall remain solely responsible for the attachment, perfection and priority of
all Liens created by this Agreement or any other Security Document in favor of such Secured Party. No Secured Party shall have
by reason of this Agreement or any other Transaction Document an agency or fiduciary relationship with any other Secured
Party. No Secured Party (which term, as used in this sentence, shall include reference to each Secured Party’s officers,
directors, employees, attorneys, agents and affiliates and to the officers, directors, employees, attorneys and agents of such
Secured Party’s affiliates) shall: (i) have any duties or responsibilities except those expressly set forth in this
Agreement and the other Security Documents or (ii) be required to take, initiate or conduct any enforcement action (including
any litigation, foreclosure or collection proceedings hereunder or under any of the other Security Documents). Without limiting
the foregoing, no Secured Party shall have any right of action whatsoever against any other Secured Party as a result of such
Secured Party acting or refraining from acting hereunder or under any of the Security Documents except as a result and to the
extent of losses caused by such Secured Party’s actual gross negligence or willful misconduct. No Secured Party assumes
any responsibility for any failure or delay in performance or breach by the Pledgor or any Secured Party of its obligations under
this Agreement or any other Transaction Document. No Secured Party makes to any other Secured Party any express or implied
warranty, representation or guarantee with respect to any Secured Obligations, Pledged Collateral, Transaction Document or the
Pledgor. No Secured Party nor any of its officers, directors, employees, attorneys or agents shall be responsible to any other
Secured Party or any of its officers, directors, employees, attorneys or agents for: (i) any recitals, statements, information,
representations or warranties contained in any of the Transaction Documents or in any certificate or other document furnished
pursuant to the terms hereof; (ii) the execution, validity, genuineness, effectiveness or enforceability of any of the Transaction
Documents; (iii) the validity, genuineness, enforceability, collectability, value, sufficiency or existence of any Pledged
Collateral, or the attachment, perfection or priority of any Lien therein; or (iv) the assets, liabilities, financial condition,
results of operations, business, creditworthiness or legal status of the Pledgor. No Secured Party nor any of its officers, directors,
employees, attorneys or agents shall have any obligation to any other Secured Party to ascertain or inquire into the existence
of any default or Event of Default, the observance or performance by the Pledgor of any of the duties or agreements of the Pledgor
under any of the Transaction Documents or the satisfaction of any conditions precedent contained in any of the Transaction Documents.

 

(b)
Each Secured Party hereby acknowledges and represents that it has, independently and without reliance upon any other Secured Party,
and based upon such documents, information and analyses as it has deemed appropriate, made its own credit analysis of the Pledgor
and the Company and its own decision to enter into the Transaction Documents and to purchase the Notes and Warrants, and each Secured
Party has made such inquiries concerning the Transaction Documents, the Pledged Collateral, the Company and the Pledgor as such
Secured Party feels necessary and appropriate, and has taken such care on its own behalf as would have been the case had it entered
into the Transaction Documents without any other Secured Party. Each Secured Party hereby further acknowledges and represents
that the other Secured Parties have not made any representations or warranties to it concerning the Pledgor, any of the Pledged
Collateral or the legality, validity, sufficiency or enforceability of any of the Transaction Documents. Each Secured Party also
hereby acknowledges that it will, independently and without reliance upon the other Secured Parties, and based upon such financial
statements, documents and information as it deems appropriate at the time, continue to make and rely upon its own credit decisions
in taking or refraining to take any other action under this Agreement or the Transaction Documents. No Secured Party shall
have any duty or responsibility to provide any other Secured Party with any notices, reports or certificates furnished to such
Secured Party by the Pledgor or any credit or other information concerning the affairs, financial condition, business or assets
of the Company (or any of its affiliates) or any Pledgor which may come into possession of such Secured Party

 

SECTION
16. Miscellaneous.

 

(a)
No amendment of any provision of this Agreement shall be effective unless it is in writing and signed by the Pledgor and the Required
Holders, and no waiver of any provision of this Agreement, and no consent to any departure by the Pledgor therefrom, shall be
effective unless it is in writing and signed by the Required Holders, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given.

 

    14

     

    

 

(b)
No failure on the part of any Secured Party to exercise, and no delay in exercising, any right hereunder or under any other Transaction
Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right. The rights and remedies of the Secured Parties provided herein and in the
other Transaction Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law.
The rights of the each Secured Party under any Transaction Document against any party thereto are not conditional or contingent
on any attempt by such Secured Party to exercise any of its rights under any other Transaction Document against such party or
against any other Person.

 

(c)
Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

(d)
This Agreement shall create a continuing security interest in and Lien on the Pledged Collateral and shall (i) remain in full
force and effect until the termination of this Agreement in accordance with the terms hereof and (ii) be binding on the Pledgor
and his heirs and assigns and shall inure, together with all rights and remedies of each Secured Party and its successors, transferees
and assigns. Without limiting the generality of clause (ii) of the immediately preceding sentence, each Secured party may assign
or otherwise transfer its rights and obligations under this Agreement and any other Transaction Document to any other Person pursuant
to the terms of the Securities Purchase Agreement, and such other Person shall thereupon become vested with all of the benefits
in respect thereof granted to such Secured Party herein or otherwise. Upon any such assignment or transfer, all references in
this Agreement to such Secured Party shall mean the assignee of such Secured Party. None of the rights or obligations of the Pledgor
hereunder may be assigned or otherwise transferred without the prior written consent of the Required Holders, and any such assignment
or transfer without such consent shall be null and void.

 

(e)
Notwithstanding anything to the contrary in this Agreement, (i) this Agreement (along with all powers of attorney granted hereunder)
and the security interests and Lien created hereby shall terminate and all rights to the Pledged Collateral shall revert to the
Pledgor upon the repayment in full and/or complete conversion to equity securities of the Company of all indebtedness obligations
owed by the Company to the Secured Parties under the Notes (including, without limitation, all principal, interest and fees related
to the Notes), and (ii) the Secured Parties will, upon the Pledgor’s request and at the Pledgor’s expense, (A) return
to the Pledgor such of the Pledged Collateral (to the extent delivered to such Secured Party) as shall not have been sold or otherwise
disposed of or applied pursuant to the terms hereof, and (B) execute and deliver to the Pledgor, without recourse, representation
or warranty, such documents as the Pledgor shall reasonably request to evidence such termination.

 

(f)
The internal laws, and not the laws of conflicts, of the State of New York shall govern the enforceability and validity of this
Agreement, the construction of its terms and the interpretation of the rights and duties of the parties, except as required by
mandatory provisions of law and except to the extent that the validity and perfection or the perfection and the effect of perfection
or non-perfection of the security interest and Lien created hereby, or remedies hereunder, in respect of any particular Pledged
Collateral are governed by the law of a jurisdiction other than the State of New York.

 

    15

     

    

 

(g)
Each party to this Agreement hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction
of the United States District Court for the Southern District of New York sitting in Manhattan or the Commercial Division, Civil
Branch of the Supreme Court of the State of New York sitting in New York County in connection with any suit, action or proceeding
directly or indirectly arising out of, under or in connection with this Agreement or the other Transaction Documents or the transactions
contemplated hereby or thereby. No party to this Agreement may move to (i) transfer any such suit, action or proceeding brought
in such New York court or federal court to another jurisdiction, (ii) consolidate any such suit, action or proceeding brought
in such New York court or federal court with a suit, action or proceeding in another jurisdiction or (iii) dismiss any such suit,
action or proceeding brought in such New York court or federal court for the purpose of bringing the same in another jurisdiction.
Each party to this Agreement agrees that a final judgment in any such suit, action or proceeding shall be conclusive and may be
enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law. Each party to this Agreement
hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which
it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement,
or the other Transaction Documents in any New York court sitting in New York County or any federal court sitting in the Southern
District of New York. The choice of the laws of the State of New York as the governing law of this Agreement is a valid choice
of law and would be recognized and given effect to in any action brought before a court of competent jurisdiction in the British
Virgin Islands, except for those laws (i) which such court considers to be procedural in nature, (ii) which are revenue or penal
laws or (iii) the application of which would be inconsistent with public policy, as such term is interpreted under the laws of
the British Virgin Islands. The choice of laws of the State of New York as the governing law of this Agreement will be honored
by competent courts in the People’s Republic of China, subject to compliance with relevant People’s Republic of China
civil procedural requirements. The Pledgor or any of its properties, assets (including, without limitation, the Pledged Shares)
or revenues does not have any right of immunity under British Virgin Islands, the People’s Republic of China or New York
law, from any legal action, suit or proceeding, from the giving of any relief in any such legal action, suit or proceeding, from
set-off or counterclaim, from the jurisdiction of any British Virgin Islands and the People’s Republic of China, New York
or United States federal court, from service of process, attachment upon or prior to judgment, or attachment in aid of execution
of judgment, or from execution of a judgment, or other legal process or proceeding for the giving of any relief or for the enforcement
of a judgment, in any such court, with respect to its obligations, liabilities or any other matter under or arising out of or
in connection with this Agreement; and, to the extent that the Pledgor, or any of its properties, assets (including, without limitation,
the Pledged Shares) or revenues may have or may hereafter become entitled to any such right of immunity in any such court in which
proceedings may at any time be commenced, the Pledgor hereby waives such right to the extent permitted by law and hereby consents
to such relief and enforcement as provided in this Agreement and the other Transaction Documents.

 

(h)
The Company hereby appoints Joan Wu, Esq. of Hunter Taubman Fischer & Li LLC, as its agent for service of process in New York.
The Pledgor hereby appoints Joan Wu, Esq. of Hunter Taubman Fischer & Li LLC, as its agent for service of process in New York.
Nothing contained herein shall affect the right of each Secured Party to serve process in any other manner permitted by law or
commence legal proceedings or otherwise proceed against the Pledgor or any property of the Pledgor in any other jurisdiction.

 

    16

     

    

 

(i)
The Pledgor irrevocably and unconditionally waives any right he may have to claim or recover in any legal action, suit or proceeding
referred to in this Section any special, exemplary, punitive or consequential damages.

 

(j)
EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY SUIT, ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR
OTHER TRANSACTION DOCUMENTS.

 

(k)
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

(l)
This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

 

[Signature
Page Follows]

 

    17

     

    

 

In
Witness Whereof, the Pledgor, the Company and
the Secured Parties have executed and delivered this Agreement as of the date first above written.

 

	 	PLEDGOR:
	 	 
	 	FENG ZHOU MANAGEMENT LIMITED
	 	 	 	 
	 	By:	 
	 	 	Name:	Feng Zhou
	 	 	Title:	Sole Shareholder and Sole Director

 

    18

     

    

 

In
Witness Whereof, the Pledgor, the Company and
the Secured Parties have executed and delivered this Agreement as of the date first above written.

 

	 	SECURED PARTY:
	 	 
	 	[BUYER]
	 	 	 
	 	By:	 
	 	 	Name: 	 
	 	 	Title:	 

 

    19

     

    

 

In
Witness Whereof, the Pledgor, the Company and
the Secured Parties have executed and delivered this Agreement as of the date first above written.

 

	 	SECURED PARTY:
	 	 
	 	[OTHER BUYERS]
	 	 	 
	 	By:	 
	 	 	Name: 	 
	 	 	Title:	 

 

    20

     

    

 

In
Witness Whereof, the Pledgor, the Company and
the Secured Parties have executed and delivered this Agreement as of the date first above written.

 

	 	COMPANY:
	 	 
	 	China
    SXT Pharmaceuticals, Inc.
	 	 	 
	 	By:	       
	 	 	Name: 	                      
	 	 	Title: 	 

 

    21

     

    

 

SCHEDULE
I TO PLEDGE AGREEMENT

 

Pledged
Shares

 

	Pledgor	 	Name of Issuer	 	Number of Shares	 	% of Shares	 	 	Class	 	Secured
    Party
 to Initially 

    Hold Certificate with respect to such

    Pledged Shares
	Feng Zhou Management Limited	 	China SXT Pharmaceuticals, Inc.	 	Two Million Ordinary Shares	 	 	           	 	 	Ordinary Shares	 	         
	Feng Zhou Management Limited	 	China SXT Pharmaceuticals, Inc.	 	Two Million Ordinary Shares	 	 	 	 	 	Ordinary Shares	 	 

 

    22

     

    

 

ANNEX
I

 

TO

 

PLEDGE
AGREEMENT

 

PLEDGE
AMENDMENT

 

This
Pledge Amendment, dated ●, 20●, is delivered pursuant to Section 4 of the Pledge Agreement referred to below.
The undersigned hereby agrees that this Pledge Amendment may be attached to the Amended and Restated Pledge Agreement, dated as
of April __, 2019, made by ___________ in favor of the secured parties signatory thereto (the “Secured Parties”)
as it may heretofore have been or hereafter may be amended or otherwise modified or supplemented from time to time and that the
Pledged Shares (or other equity interest) listed on this Pledge Amendment shall be hereby pledged and assigned to the Secured
Parties and become part of the Pledged Collateral referred to in such Pledge Agreement and shall secure all of the obligations
referred to in such Pledge Agreement.

 

Pledged
Shares

 

	Pledgor	 	Name
    of Issuer	 	Number
    of Shares	 	Class	 	Certificate
    No(s)
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

	 	PLEDGOR:
	 	 
	 	 
	 	Feng Zhou

 

 

23ex_140941.htm

Exhibit 10.1

 

NINETEENTH AMENDMENT TO LOAN DOCUMENTS

 

BUILD-A-BEAR WORKSHOP, INC. (“BABWI”), successor by merger to BUILD-A-BEAR WORKSHOP, LLC, BUILD-A-BEAR WORKSHOP FRANCHISE HOLDINGS, INC. (“BABWF”), BUILD-A-BEAR ENTERTAINMENT, LLC (“BABE”), BUILD-A-BEAR RETAIL MANAGEMENT, INC. (“BABRM”), BUILD-A-BEAR CARD SERVICES, LLC (“BABCS”), jointly and severally (individually and collectively, the "Borrower"), and U.S. BANK NATIONAL ASSOCIATION ("Lender"), hereby agree as follows effective as of April 16, 2019 (the "Effective Date"):

 

	
			1.

				
			Recitals.

			

 

	 	
			1.1

				
			Lender and Borrower entered into a Fourth Amended and Restated Loan Agreement dated as of August 11, 2008 with respect to a revolving credit facility extended to Borrower by Lender (the “Fourth Amended Loan Agreement”) and Borrower delivered to Lender in connection therewith the Fourth Amended and Restated Revolving Credit Note (the “Fourth Amended Revolving Note”).

			

 

	 	
			1.2

				
			Lender and Borrower amended the Fourth Amended Loan Agreement, the Fourth Amended Revolving Note, and the related Loan Documents pursuant to the Seventh Amendment to Loan Documents effective as of October 28, 2009, the Eighth Amendment to Loan Documents effective as of December 31, 2010, the Ninth Amendment to Loan Documents effective as of December 30, 2011, the Tenth Amendment to Loan Documents effective as of June 30, 2012, the Eleventh Amendment to Loan Documents effective as of December 21, 2012, the Twelfth Amendment to Loan Documents effective as of February 13, 2013, the Thirteenth Amendment to Loan Documents effective as of April 30, 2013, the Fourteenth Amendment to Loan Documents effective as of January 22, 2014, the Fifteenth Amendment to Loan Documents effective as of December 31, 2014, the Joinder and Sixteenth Amendment to Loan Documents dated April 25, 2016, the Seventeenth Amendment to Loan Documents effective as of May 4, 2017, and the Eighteenth Amendment to Loan Documents effective as of December 14, 2018.

			

 

	 	
			1.3

				
			Lender and Borrower have agreed to further amend the Loan Documents pursuant to the terms of this Nineteenth Amendment to Loan Documents (this “Amendment”).

			

 

	 	
			1.4

				
			Capitalized terms used herein and not otherwise defined will have the meanings given such terms in the Fourth Amended Loan Agreement or, if not defined therein, in the Fourth Amended Revolving Note.

			

 

	
			2.

				
			Amendments.

			

 

	 	
			2.1

				
			Section 6.4 of the Fourth Amended Loan Agreement is hereby deleted and replaced with the following:

			
	 	 	 
	 	 	“6.4     Minimum EBITDA. Permit EBITDA to be less than $5,200,000 for the fiscal quarter ending on or about April 30, 2019, $9,900,000 for the two (2) fiscal quarter period ending on or about July 31, 2019, or $6,600,000 for the three (3) fiscal quarter period ending on or about October 31, 2019.”

 

 

 

 

	 	
			2.2

				
			Section 6.5 of the Fourth Amended Loan Agreement is hereby deleted and replaced with the following:

			

 

“6.5     Funded Debt Ratio. Permit the ratio of: (i) Funded Debt as of each fiscal quarter-end to (ii) EBTIDA calculated on a rolling historical 12-month basis plus the applicable Funded Debt Ratio EBITDA Adjustment, if any, all for Borrower on a consolidated basis, to be greater than 1.50 to 1.00. The term “Funded Debt Ratio EBITDA Adjustment” shall mean $10,800,000 for the four fiscal quarters ending February 2, 2019, $10,000,000 for the four fiscal quarters ending on or about April 30, 2019, $9,000,000 for the four fiscal quarters ending on or about July 31, 2019, or $8,000,000 for the four fiscal quarters ending on or about October 31, 2019.”

 

	 	
			2.3

				
			Section 6.6 of the Fourth Amended Loan Agreement is hereby deleted and replaced with the following, effective immediately prior to the fiscal quarter-ended February 2, 2019 (notwithstanding the Effective Date stated herein):

			

 

“6.6     Fixed Charge Coverage Ratio. Commencing with the fiscal quarter ending on or about January 31, 2020 and continuing thereafter, permit the ratio of: (A) the sum of (i) net income, depreciation, amortization, interest expense, income taxes, and operating lease payments, minus the sum of (ii) cash actually expended for taxes and dividends, and maintenance capital expenditures equal to $8,000,000, to (B) the sum of scheduled principal payments on Indebtedness including capitalized lease payments, plus cash actually expended for interest and operating lease payments, all for Borrower on a consolidated basis, to be less than 1.20 to 1.00 as of each fiscal quarter-end, on a rolling historical 12-month basis.”

 

	 	
			2.4

				
			Section 6.7 of the Fourth Amended Loan Agreement is hereby deleted and replaced with the following:

			

 

“6.7     Dividends.   Declare or pay any dividends of any kind (other than dividends payable solely in shares of its equity interests) unless the Payment Conditions are satisfied.”

 

	 	
			2.5

				
			Section 6.8 of the Fourth Amended Loan Agreement is hereby deleted and replaced with the following:

			

 

“6.8     Redemptions.   Purchase, retire, redeem or otherwise acquire for value, directly or indirectly, any shares of its equity interests now or hereafter outstanding unless the Payment Conditions are satisfied.”

 

- 2 -

 

 

	 	
			2.6

				
			Article 6 of the Fourth Amended Loan Agreement is hereby amended to add the following as Section 6.15:

			

 

“6.15     Minimum Liquidity. 

 

6.15.1      Permit Borrower’s cash and cash equivalents balance to be less than $10,000,0000 on the last day of the fiscal quarters ending on or about April 30, 2019 and July 31, 2019.

 

6.15.2     Fail to reduce the outstanding principal balance of the Revolving Credit Loan to $0 on the last day of the fiscal quarters ending on or about April 30, 2019 and July 31, 2019.

 

6.15.3     Fail to achieve Liquidity of at least $16,000,000 on the last day of the fiscal quarter ending on or about October 31, 2019. As used herein, the term “Liquidity” shall mean Borrower’s cash and cash equivalents balance plus the maximum amount available to be drawn under the Revolving Credit Loan on the quarter-end testing date without violating Section 6.5 (Funded Debt Ratio).”   

 

	 	
			2.7

				
			Article 13 of the Fourth Amended Loan Agreement is hereby amended to add the following as Section 13.54:

			

 

“13.54     “Payment Conditions” will mean the following with respect to each payment proposed to be made on account of a dividend, or the purchase, retirement, redemption or other acquisition for value of an equity interest in Borrower: (a) the outstanding principal balance of the Revolving Credit Loan is $0 prior to and after giving effect to such payment; (b) Borrower’s cash and cash equivalents balance is not less than $10,000,000 prior to and after giving effect to such payment; (c) the aggregate amount of all such payments during a fiscal year does not exceed $1,000,000 unless Lender in its sole discretion provides prior written consent to a higher amount; and (d) no Event of Default or Default exists or will exist as a result of any such payment.”

 

	
			3.

				
			General.

			

 

	 	
			3.1

				
			On the Effective Date, Borrower will pay to Lender an amendment fee in the amount of $75,000, which shall be fully-earned upon payment and not subject to proration, rebate or refund for any reason. Such fee may be charged to Borrower by Lender as a Revolving Credit Loan or to any account of Borrower with Lender.

			

 

	 	
			3.2

				
			Borrower acknowledges that Lender is entitled obtain an appraisal of and title update with respect to Borrower’s facility located in Groveport, Ohio and will cooperate with Lender and its appraiser in connection therewith. Lender will pay for the cost of such appraisal and title update notwithstanding the terms of the Loan Documents to the contrary.

			

 

	 	
			3.3

				
			The closing of this Amendment shall be subject to delivery by Borrower to Lender of a certificate of the secretary of each Borrower, certifying to the incumbency and signature of each officer authorized to sign this Amendment.

			

 

	 	
			3.4

				
			Except as expressly modified herein, the Loan Documents, as amended, are and remain in full force and effect. Nothing contained herein will be construed as waiving any Default or Event of Default under the Loan Documents or will affect or impair any right, power or remedy of Lender under or with respect to the Loan Documents, as amended, or any agreement or instrument guaranteeing, securing or otherwise relating to any of the Obligations.

			

 

- 3 -

 

 

	 	
			3.5

				
			Borrower represents and warrants to Lender that: (a) this Amendment and the documents to be executed by Borrower in connection with this Amendment have been duly authorized, executed and delivered by Borrower; (b) each has full power and authority to enter into this Amendment; (c) this Amendment and the documents executed by Borrower in connection with this Amendment constitute the legal, valid and binding obligations of Borrower enforceable in accordance with their respective terms except as such enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or similar laws in effect from time to time affecting the rights of creditors generally and except as such enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in law or in equity); and (d) no Default or Event of Default exists. The representations and warranties of Borrower contained in the Loan Documents are deemed to have been made again on and as of the date of execution of this Amendment, except to the extent that such representations and warranties were expressly limited to an earlier date.

			

 

	 	
			3.6

				
			Borrower releases Lender from any and all claims, setoffs, actions or causes of actions that arise out of any transaction, event, or circumstance, which occurred, existed, was taken, permitted or begun at any time prior to the Effective Date pursuant to or by virtue of any of the terms of the Loan Documents.

			

 

	 	
			3.7

				
			All representations and warranties made by Borrower herein will survive the execution and delivery of this Amendment.

			

 

	 	
			3.8

				
			This Amendment will be binding upon and inure to the benefit of Borrower and Lender and their respective successors and assigns.

			

 

	 	
			3.9

				
			Notwithstanding the terms of the Loan Documents to the contrary, Lender’s legal fees and expenses incurred in connection with closing this Amendment will be paid by Lender.

			

 

	 	
			3.10

				
			This Amendment will in all respects be governed and construed in accordance with the laws of the State of Ohio.

			

 

	 	
			3.11

				
			A copy of this Amendment may be attached to the Fourth Amended Revolving Note as an allonge. This Amendment is a “Loan Document” as defined in the Fourth Amended Loan Agreement.

			

 

	 	
			3.12

				
			This Amendment and the documents and instruments to be executed hereunder constitute the entire agreement among the parties with respect to the subject matter hereof and shall not be amended, modified or terminated except by a writing signed by the party to be charged therewith.

			

 

- 4 -

 

 

	 	
			3.13

				
			Borrower agrees to execute such other instruments and documents and provide Lender with such further assurances as Lender may reasonably request to more fully carry out the intent of this Amendment.

			

 

	 	
			3.14

				
			This Amendment may be executed in a number of identical counterparts. If so, each such counterpart shall collectively constitute one agreement. Any signature delivered by a party by facsimile or other electronic transmission shall be deemed to be an original signature hereto.

			

 

	 	
			3.15

				
			No provision of this Amendment is intended or shall be construed to be for the benefit of any third party.

			

 

	 	
			3.16

				
			BORROWER AND LENDER HEREBY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION RELATING TO THIS INSTRUMENT AND TO ANY OF THE LOAN DOCUMENTS, THE OBLIGATIONS THEREUNDER, ANY COLLATERAL SECURING THE OBLIGATIONS, OR ANY TRANSACTION ARISING THEREFROM OR CONNECTED THERETO. BORROWER AND LENDER EACH REPRESENTS TO THE OTHER THAT THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY GIVEN.

			

 

SIGNATURE PAGES FOLLOW

 

- 5 -

 

 

SIGNATURE PAGE TO 

NINETEENTH AMENDMENT TO LOAN DOCUMENTS 

 

 

 

	 	 	
			U.S. BANK NATIONAL ASSOCIATION

			
	 	 	
			Lender

			
	 	 	 
	 	 	
			By: /s/ Ryan Reckman                                               

			
	 	 	
			Print Name: Ryan Reckman                                      

			Title: Vice President                                                  

			

 

- 6 -

 

 

SIGNATURE PAGE TO 

NINETEENTH AMENDMENT TO LOAN DOCUMENTS 

 

 

 

	 	 	
			BUILD-A-BEAR WORKSHOP, INC.,

			BUILD-A-BEAR WORKSHOP FRANCHISE HOLDINGS, INC.,

			BUILD-A-BEAR RETAIL MANAGEMENT, INC.

			
	 	 	
			Borrowers

			
	 	 	 
	 	 	
			By: /s/ Voin Todorovic                                                     

			
	 	 	
			Print Name:Voin Todorovic                                             

			
	 	 	
			Title:Chief Financial Officer                                           

			
	 	 	 
	 	 	 
	 	 	
			BUILD-A-BEAR ENTERTAINMENT, LLC,

			
	 	 	
			By: Build-A-Bear Retail Management, Inc.,

			Sole Member

			Borrower

			
	 	 	 
	 	 	
			By: /s/ Voin Todorovic                                            

			
	 	 	
			Print Name: Voin Todorovic                                   

			
	 	 	
			Title: Chief Financial Officer                        

			
	 	 	 
	 	 	 
	 	 	BUILD-A-BEAR CARD SERVICES, LLC,
	 	 	
			By: Build-A-Bear Workshop, Inc.,

			Sole Member

			Borrower

			
	 	 	 
	 	 	By: /s/ Voin Todorovic                                                   
	 	 	Print Name: Voin Todorovic                                          
	 	 	Title: Chief Financial Officer                                        

 

- 7 -

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