Document:

Exhibit 10.3

 

EXECUTION
COPY

  

NOTE
PURCHASE AGREEMENT

 

NOTE
PURCHASE AGREEMENT (the “Agreement”), dated as of April __, 2019, by and among 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 investor signatory hereto (the “Investor”).

 

WHEREAS:

 

A. Prior
to the date hereof, the Company, the Investor and certain other investors (the “Other Investors”, and together
with the Investor, the “Investors”) have entered into that certain Securities Purchase Agreement, dated April
16, 2019, pursuant to which, among other things, the Investor shall acquire a senior secured convertible note (the “Series
B Note”) of the Company (the “Securities Purchase Agreement”).

 

B. The
Company and the Investor is executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), as promulgated by the
United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

 

C. The
Investor has authorized the issuance of a new secured promissory Investor Note in substantially the form attached hereto as Exhibit
A, pursuant to the terms set forth herein (collectively, the “Investor Note”).

 

D. The
Investor wishes to purchase the Series B Note from the Company pursuant to the Securities Purchase Agreement and to issue the
Investor Note in full satisfaction, of the purchase price of the Series B Note (the “Series B Purchase Price”),
and the Company wishes to (x) sell the Series B Note to the Investor, (y) acquire the Investor Note in full satisfaction of the
Series B Purchase Price and (z) pledge the Investor Note to the Investor as collateral for its obligations under the Series B
Note.

 

E. The
Investor Note will be secured by a first priority security interest in certain Eligible Assets (as defined in the Investor Note)
(collectively, the “Collateral”) held in the collateral account of the Investor described in the Investor Note
(the “Collateral Account”).

 

F. Concurrently
herewith, each of the Company and the Investor are entering into that certain Master Netting Agreement, in substantially the form
attached hereto as Exhibit B (the “Master Netting Agreement”), to provide further clarification
of its right (but not, in the case of Investor only, its obligation) to Net (as defined below) certain Obligations (as defined
in the Netting Agreement) arising under and across this Agreement, the Investor Note, the Series B Notes and the Securities Purchase
Agreement (collectively, the “Underlying Agreements”) and to treat the Master Netting Agreement, this Agreement
and the other Underlying Agreements as a single agreement for the purposes set forth herein and this Agreement and the Securities
Purchase Agreement each as a “securities contract” (11 U.S.C. § 741), or other similar agreements.

  

     

     

    

 

NOW,
THEREFORE, the Company and the Investor hereby agree as follows:

 

1. PURCHASE
AND SALE OF INVESTOR NOTE.

 

(a) Investor
Note. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6 below, the Investor agrees to
issue and sell to the Company, and the Company agrees to purchase from the Investor on the Closing Date (as defined below), such
aggregate principal amount of Investor Note as is set forth on the signature page of the Investor attached hereto in full satisfaction
of the Series B Purchase Price under the Securities Purchase Agreement (the “Closing”).

 

(b) Closing.
The Closing of the purchase of the Investor Note by the Company shall occur at the offices of Kelley Drye & Warren LLP, 101
Park Avenue, New York, NY 10178. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m.,
New York time, on the first (1st) Business Day on which the conditions to the Closing set forth in Sections 5 and 6 below are
satisfied or waived (or such other date or time as is mutually agreed to by the Company and the Investor). As used herein “Business
Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized
or required by law to remain closed.

 

(c) Delivery
of Investor Note in Satisfaction of Series B Purchase Price; Securities Contract; Netting Safe Harbor. On the Closing Date,
the Investor shall duly execute the Investor Note, registered in the name of the Company, in full satisfaction of the Series B
Purchase Price pursuant to the Securities Purchase Agreement, and, in accordance with the instructions of the Company in the Flow
of Funds Letter (as defined in the Securities Purchase Agreement), the Investor shall maintain physical possession of the Investor
Note as Collateral (as defined in the Series B Note) securing the Series B Note. For the avoidance of doubt, the Investor Note
is deemed simultaneously delivered (x) by the Investor to the Company at the Closing hereunder and (y) delivered by the Company
to the Investor at the Closing (as defined in the Securities Purchase Agreement) under the Securities Purchase Agreement, as Collateral
for the Series B Note purchased by the Investor thereunder. Other than the issuance of the Series B Note to the Investor pursuant
to the Securities Purchase Agreement, the Company shall not be required to pay any additional consideration for the issuance of
the Investor Note hereunder. The Company hereby acknowledges and agrees that the rights and obligations of the Investor under
the Master Netting Agreement, hereunder and under the other Underlying Agreements and the rights and obligations of the Company
under the Master Netting Agreement, hereunder and under the other Underlying Agreements arise in a single integrated transaction
and constitute related and interdependent obligations within such transaction. The Company and the Investor hereby acknowledge
and agree that this Agreement and the Securities Purchase Agreement each is a “securities contract” as defined in
11 U.S.C. § 741 and that Investor shall have all rights in respect of the Master Netting Agreement, this Agreement and the
other Underlying Agreements as are set forth in 11 U.S.C. § 555 and 11 U.S.C. § 362(b)(6), including, without limitation,
all rights of credit, deduction, setoff, offset, recoupment, and netting (collectively, “Netting”) as are available
under the Master Netting Agreement, this Agreement and the other Underlying Agreements, and all Netting provisions of the Series
B Note, the Master Netting Agreement and the Investor Note, including without limitation the provisions set forth in Section 7
of the Investor Note, are hereby incorporated in this Agreement and made a part hereof as if such provisions were set forth herein.

  

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2. COMPANY’S
REPRESENTATIONS AND WARRANTIES.

 

The
Company represents and warrants, as of the date hereof and as of the Closing Date in which the Company is purchasing the Investor
Note hereunder, that:

 

(a) Securities
Purchase Agreement. The representations and warranties of the Company set forth in the Securities Purchase Agreement are hereby
incorporated by reference herein, mutatis mutandis.

 

(b) No
Sale or Distribution. The Company is acquiring the Investor Note for its own account and not with a view towards, or for resale
in connection with, the public sale or distribution thereof. The Company does not presently have any agreement or understanding,
directly or indirectly, with any Person (as defined in the Securities Purchase Agreement) to distribute any of the Investor Note.

 

(c) Sophisticated
Investor. The Company is a sophisticated investor (as described in Rule 506(b)(2)(ii) of Regulation D), and has such knowledge
and experience in business and financial matters that it is capable of evaluating the merits and risks of an investment in the
Investor Note.

 

(d) Reliance
on Exemptions. The Company understands that the Investor Note is being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Investor is relying in part
upon the truth and accuracy of, and the Company’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Company set forth herein in order to determine the availability of such exemptions and the eligibility
of the Company to acquire the Investor Note.

 

(e) Information.
The Company and its advisors, if any, have been furnished with all materials relating to the business, finances and operations
of the Investor and materials relating to the offer and sale of the Investor Note that have been requested by the Company. The
Company and its advisors, if any, have been afforded the opportunity to ask questions of the Investor. Neither such inquiries
nor any other due diligence investigations conducted by the Company or its advisors, if any, or its representatives shall modify,
amend or affect the Company’s right to rely on the Investor’s representations and warranties contained herein. The
Company understands that its investment in the Investor Note involves a high degree of risk. The Company has sought such accounting,
legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of
the Investor Note.

 

(f) No
Governmental Review. The Company understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Investor Note or the fairness or suitability of the investment
in the Investor Note nor have such authorities passed upon or endorsed the merits of the offering of the Investor Note.

  

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(g) Transfer
or Resale. The Company understands that: (i) the Investor Note has not been and is not being registered under the 1933 Act
or any state securities laws, and may not be offered for sale, sold, assigned or transferred without the consent of the Investor
(and any Prohibited Transfer (as defined in the Investor Note) shall be subject to certain recoupment rights and netting against
the Series B Note to be issued to the Investor concurrently with the Closing hereunder) and (ii) neither the Investor nor any
other Person is under any obligation to register the Investor Note under the 1933 Act or any state securities laws or to comply
with the terms and conditions of any exemption thereunder.

 

(h) Legends.
The Company understands that the certificates or other instruments representing the Investor Note shall bear any legend as required
by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of such stock certificates):

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE APPLICABLE STATE SECURITIES
LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND SUCH STATE SECURITIES
LAWS, OR AN EXEMPTION FROM REGISTRATION THEREUNDER, IN EACH CASE, TO THE EXTENT APPLICABLE HERETO.

 

3. REPRESENTATIONS
AND WARRANTIES OF THE INVESTOR.

 

The
Investor represents and warrants to the Company as of the date hereof and as of the Closing Date as follows:

 

(a) Securities
Purchase Agreement. The representations and warranties of the Investor set forth in the Securities Purchase Agreement are
hereby incorporated by reference herein, mutatis mutandis.

 

(b) Authorization;
Enforcement; Validity. The Investor has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement and the Investor Note and each of the other agreements entered into by the parties hereto in connection with
the transactions contemplated by this Agreement (collectively, the “Transaction Documents”) and to issue the
Investor Note in accordance with the terms hereof and thereof. The execution and delivery of the Transaction Documents by the
Investor and the consummation by the Investor of the transactions contemplated hereby and thereby, including, without limitation,
the issuance of the Investor Note has been duly authorized by the Investor’s investment manager or other governing body
and no further filing, consent, or authorization is required by the Investor. This Agreement and the other Transaction Documents
have been duly executed and delivered by the Investor, and constitute the legal, valid and binding obligations of the Investor,
enforceable against the Investor in accordance with their respective terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to,
or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(c) Issuance
of Investor Note. The issuance of the Investor Note is duly authorized and upon issuance in accordance with the terms of the
Transaction Documents shall be free from all taxes, liens and charges with respect to the issue thereof. Assuming the accuracy
of each of the representations and warranties set forth in Section 2 of this Agreement, the offer and issuance by the Investor
of the Investor Note is exempt from registration under the 1933 Act.

  

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(d) No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Investor and the consummation by the
Investor of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Investor Note)
will not (i) result in a violation of the Investor’s organizational documents or (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights
of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Investor is a
party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and
state securities laws and regulations) applicable to the Investor or by which any property or asset of the Investor is bound or
affected, except, in the case of clause (ii) and (iii) above, for such violations, conflicts, breaches, defaults, losses, terminations
of rights thereof, or accelerations which, in the aggregate, would not reasonably be expected to have a Material Adverse Effect
(as defined below). “Material Adverse Effect” means any material adverse effect on (i) the business, properties,
assets, liabilities, operations (including results thereof) or condition (financial or otherwise) of the Investor, (ii) the transactions
contemplated hereby or in any of the other Transaction Documents or (iii) the authority or ability of the Investor to perform
any of their respective obligations under any of the Transaction Documents.

 

(e) Consents.
The Investor is not required to obtain any consent, authorization or order of, or make any filing or registration with, any government,
court, regulatory, self-regulatory, administrative agency or commission or other governmental agency, authority or instrumentality,
domestic or foreign, of competent jurisdiction (a “Governmental Authority”) or any other Person in order for
it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents, in each case in accordance
with the terms hereof or thereof. The Investor is unaware of any facts or circumstances that might prevent the Investor from obtaining
or effecting any of the registration, application or filings pursuant to the preceding sentence.

 

(f) No
General Solicitation. The Investor has not engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D) in connection with the offer or sale of the Investor Note.

 

(g) No
Integrated Offering. Neither the Investor nor any Person acting on its behalf has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the
issuance of the Investor Note under the 1933 Act, whether through integration with prior offerings or otherwise. Neither the Investor
nor any Person acting on their behalf will take any action or steps referred to in the preceding sentence that would require registration
of the issuance of any of the Investor Note under the 1933 Act.

 

(h) Sufficient
Collateral. As of the Closing Date the bank account described on Schedule I to the Investor Note, which Collateral secures
the Investor Note in accordance therewith, contains at least the Series B Purchase Price of Eligible Assets as of the Closing
Date.

 

(i) Full
Recourse. The Investor Note is a full recourse obligation of the Investor.

  

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4. COVENANTS.

 

(a) Reasonable
Best Efforts. Each party shall use its reasonable best efforts timely to satisfy each of the conditions to be satisfied by
it as provided in Sections 5 and 6 of this Agreement.

 

(b) Fees.
The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or broker’s
commissions relating to or arising out of the transactions contemplated hereby. The Company shall pay, and hold the Investor harmless
against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses)
arising in connection with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents
or the Securities Purchase Agreement, each party to this Agreement shall bear its own expenses in connection with the sale of
the Investor Note to the Investors.

 

(c) Taxes.
The Company will pay, and save and hold the Investor harmless from any and all liabilities (including interest and penalties)
with respect to, or resulting from any delay or failure in paying, stamp and other taxes (other than income taxes), if any, which
may be payable or determined to be payable on the execution and delivery or acquisition of the Investor Note.

 

5. CONDITIONS
TO THE INVESTOR’S OBLIGATION TO SELL. The obligation of the Investor hereunder to issue and sell the Investor Note to
the Company at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions,
provided that these conditions are for the Investor’s sole benefit and may be waived by the Investor at any time in its
sole discretion by providing the Company with prior written notice thereof:

 

(a) The
Company shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Investor.

 

(b) All
conditions to the Investor’s closing of the transactions contemplated by the Securities Purchase Agreement shall have been
satisfied (except for such conditions waived by the Investor) and the Investor Note is being issued hereunder in full satisfaction
of the Series B Purchase Price.

 

(c) The
representations and warranties of the Company shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date,
which shall be true and correct as of such specified date), and the Company shall have performed, satisfied and complied in all
material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing Date.

  

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6. CONDITIONS
TO THE COMPANY’S OBLIGATION TO PURCHASE. The obligation of the Company hereunder to purchase the Investor Note at the
Closing in satisfaction, in full, of the Series B Purchase Price is subject to the satisfaction, at or before the Closing Date,
of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived
by the Company at any time in its sole discretion by providing the Investor with prior written notice thereof:

 

(a) The
Investor shall have duly executed and delivered to the Company (A) each of the Transaction Documents and (B) the Investor
Note.

 

(b) All
conditions to the Company’s closing of the transactions contemplated by the Securities Purchase Agreement shall have been
satisfied (except for such conditions waived by the Company) and the Investor Note is being issued hereunder in full satisfaction
of the Series B Purchase Price.

 

(c) The
representations and warranties of the Investor shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date,
which shall be true and correct as of such specified date), and the Investor shall have performed, satisfied and complied in all
material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied
with by the Investor at or prior to the Closing Date.

 

(d) The
Investor shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Investor Note.

 

7. TERMINATION.

 

In
the event that the Closing shall not have occurred on or prior to the termination of the Securities Purchase Agreement, this Agreement
shall automatically terminate.

   

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8. MISCELLANEOUS.

 

(a) Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any
such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. The Company
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 be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 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 Company or any of their
respective properties, assets 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 Company, or any of its properties,
assets 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 Company hereby waives such right to the extent permitted by law and hereby consents to such
relief and enforcement as provided in this Agreement.

 

(b) Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that
any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of
an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

(c) Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision
in which they are found.

  

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(d) Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

(e) Entire
Agreement; Amendments. This Agreement, the Securities Purchase Agreement, the other Transaction Documents (as defined herein)
and the Transaction Documents (as defined in the Securities Purchase Agreement) and the schedules and exhibits attached hereto
and thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the
Investors, the Company, its Subsidiaries, their affiliates and Persons acting on their behalf solely with respect to the matters
contained herein and therein, and this Agreement, the other Transaction Documents (as defined herein) and the Transaction Documents
(as defined in the Securities Purchase Agreement), the schedules and exhibits attached hereto and thereto and the instruments
referenced herein and therein contain the entire understanding of the parties solely with respect to the matters covered herein
and therein; provided, however, nothing contained in this Agreement or any other Transaction Document or the Transaction Documents
(as defined in the Securities Purchase Agreement) shall (or shall be deemed to) (i) have any effect on any agreements the Investor
has entered into with the Company or any of its Subsidiaries prior to the date hereof with respect to any prior investment made
by the Investor in the Company or (ii) waive, alter, modify or amend in any respect any obligations of the Company or any of its
Subsidiaries, or any rights of or benefits to the Investor or any other Person, in any agreement entered into prior to the date
hereof between or among the Company and/or any of its Subsidiaries and the Investor and all such agreements shall continue in
full force and effect. Except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation,
warranty, covenant or undertaking with respect to such matters. For clarification purposes, the Recitals are part of this Agreement.
No provision of this Agreement may be amended or waived other than by an instrument in writing signed by the Company, the Investor
and the Required Holders (as defined in the Securities Purchase Agreement).

 

(f) Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement shall
be governed by the provisions of Section 9(f) of the Securities Purchase Agreement.

 

(g) Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns. No party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the
other party.

 

(h) No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i) Survival.
The representations, warranties, agreements and covenants shall survive each Closing. The Investor shall be responsible only for
its own representations, warranties, agreements and covenants hereunder.

 

(j) Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

(k) Construction.
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.

 

[Signature
Page Follows]

  

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IN
WITNESS WHEREOF, the Investor and the Company have caused their respective signature page to this Note Purchase Agreement
to be duly executed as of the date first written above.

  

	 	COMPANY:
	 	 
	 	CHINA SXT PHARMACEUTICALS, INC.
	 	 
	 	By:	                               
	 	 	Name:
	 	 	Title:

  

     

     

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused their respective signature page to this Note Purchase Agreement
to be duly executed as of the date first written above.

 

	 	INVESTORS:
	 	 
	 	[INVESTOR]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	Aggregate Principal Amount of Investor Note:Exhibit
10.4

 

MASTER
NETTING AGREEMENT

 

MASTER
NETTING AGREEMENT (the “Agreement”), dated as of April __, 2019, by and among 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 investor signatory hereto (the “Investor”, and together
with the Company, the “Parties” and each a “Party”).

 

WHEREAS,
prior to the date hereof, (i) the Parties and certain other investors have entered into that certain Securities Purchase Agreement,
dated April 16, 2019, pursuant to which, among other things, the Investor shall, among other things, acquire a senior secured
convertible note (the “Series B Note”) issued by the Company (the “Securities Purchase Agreement”),
which is secured by a first priority perfected lien in the Investor Note (as defined below) and (ii) the Parties have entered
into that certain Note Purchase Agreement, dated April __, 2019, pursuant to which, among other things, the Company shall acquire
certain secured promissory note (the “Investor Note”) issued by the Investor (the “Note Purchase Agreement”),
which is secured by certain Eligible Assets (as defined in the Investor Note), as payment of the purchase price of the Series
B Note pursuant to the Securities Purchase Agreement. The Note Purchase Agreement, the Investor Note, the Series B Notes and the
Securities Purchase Agreement are collectively referred to herein as the “Underlying Agreements”;

 

WHEREAS,
each Party desires to provide in this Master Netting Agreement for, among other things, further clarification of its right (but
not, in the case of Investor only, its obligation) to Net (as defined below) all Obligations (as defined below) arising under
the Underlying Agreements upon the occurrence of (i) with respect to Investor, at the Investor’s option from and after the
occurrence of either (A) a Price Failure (as defined in the Series B Note), an Investor Note Acceleration (as defined in the Investor
Note, a Redemption Netting (as defined in the Investor Note), an Event of Default (as defined in the Series B Note) or a Change
of Control (as defined in the Series B Note) (in each case, whether or not the Investor has effected an Acceleration (as defined
below)) or, if after [      ]1, an Equity Conditions Failure (as defined in the Series B Note) that is continuing or (B)
any date on or after the Eligible Optional Netting Date (as defined in the Investor Note) (whether or not a Default then exists
or the Investor has effected an Acceleration) or (ii) automatically upon the occurrence of Maturity Netting (as defined in the
Investor Note), Bankruptcy Event of Default Netting (as defined in the Investor Note) or any Prohibited Transfer (as defined in
the Investor Note), in each case, and recover against the other Party under and across the Underlying Agreements as herein specified
and to treat this Agreement and the Underlying Agreements as a single agreement for the purposes set forth herein and the Note
Purchase Agreement and the Securities Purchase Agreement each as a “securities contract” (11 U.S.C. § 741), or
other similar agreements; and

 

WHEREAS,
the Parties desire that the provisions of each Underlying Agreement remain in force under each applicable Underlying Agreement
to the extent such provisions are not expressly superseded or amended hereby.

 

 

 

 

1
Insert six month anniversary of the date hereof

 

     

     

    

 

NOW
THEREFORE, in consideration of the mutual agreements herein made and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each Party agrees as follows:

 

1.
Single Agreement. This Agreement is entered into in reliance on the Parties' agreement that for the purposes set forth
herein this Agreement and the Underlying Agreements form a single integrated agreement between the Parties, and the Parties would
not otherwise enter into this Agreement and the Underlying Agreements. The Company and the Investor hereby acknowledge and agree
(a) that the Note Purchase Agreement and the Securities Purchase Agreement each are a “securities contract” as defined
in 11 U.S.C. § 741 and that Investor shall have all rights in respect of the Underlying Agreements as are set forth in 11
U.S.C. § 555 and 11 U.S.C. § 362(b)(6), and (b) that this Agreement is a “master netting agreement” as that
term is used in 11 U.S.C. § 362(b)(27) and 11 U.S.C. § 561 and is a “master agreement” as that term is used
in 11 U.S.C. § 362(b)(6) and that Investor shall have all rights in respect of this Agreement (and in respect of the Underlying
Agreements as incorporated herein) as are set forth in 11 U.S.C. § 362(b)(27), 11 U.S.C. § 561, and 11 U.S.C. §
362(b)(6), including in respect of both the foregoing clause (a) and the foregoing clause (b), without limitation, all rights
of credit, deduction, setoff, offset, recoupment, and netting (collectively, “Netting” or “Net”)
as set forth in this Agreement, the Investor Note and the Series B Note.

 

2.
Definitions. Terms capitalized herein but not defined herein shall have the meanings given to such terms in the Securities
Purchase Agreement. In the event of any conflict or inconsistency between a term defined herein and in any of the Underlying Agreements,
such term as used in this Agreement shall govern and have the meaning ascribed to it in this Agreement for the purposes of this
Agreement. All references to “$” shall be to lawful currency of the United States of America, unless otherwise specified.
All references to Sections, Exhibits, and other provisions are to Sections, Exhibits and other provisions of this Agreement unless
otherwise expressly stated. The following terms used in this Agreement are defined as follows:

 

“Acceleration”
means the acceleration, exercise of redemption rights, required redemption, exercise of prepayment rights or the occurrence of
the Maturity Date (as defined in the Series B Note or Investor Note, as applicable), in whole or in part, of the Series B Note
or the Investor Note, as applicable, in accordance with this Agreement or the applicable Underlying Agreement.

 

“Bankruptcy
Code” means Title 11 of the U.S. Bankruptcy Code.

 

“Default”
means, as applicable, a Default (as defined in the Investor Note) or an Event of Default (as defined in the Series B Note).

 

“Netting
Party” means the Party exercising the right to effect any Netting hereunder or under the applicable Underlying Agreement.

 

“Other
Party” means the Party other than the Netting Party.

 

    - 2 -

     

    

 

“Obligation”
or “Obligations” means, with respect to a Party, each and every present or future payment or performance obligation
or liability of such Party under this Agreement or an Underlying Agreement, whether fixed, matured, unmatured, liquidated, or
unliquidated.

 

“Unpaid
Amounts” means, as of any date of determination, the Obligations owed by one Party to the other under such Underlying
Agreements that have not been paid as of the date of determination, whether or not such amounts are then due and payable and without
regard to the fair market value of the Series B Note or the Investor Note at such time, as applicable.

 

3.
Netting.

 

(a)
Optional Netting. Upon the occurrence of (i)(A) a Price Failure, a Redemption Netting, an Investor Note Acceleration, an
Event of Default or a Change of Control (in each case, whether or not the Investor has effected an Acceleration) or (B) if after
[       ]2, an Equity Conditions Failure that is continuing (each, a “Default
Netting Event”, and all the principal of the Investor Note then outstanding, the “Default Optional Permitted
Amount”) or (ii) any date on or after the Eligible Optional Netting Date (whether or not a Default then exists or the
Investor has effected an Acceleration) (as applicable, each an “Eligible Optional Permitted Amount”, and together
with any Default Optional Permitted Amount, each a “Permitted Amount”), the Investor may, without further notice
to the Company, Net (each, an “Optional Netting”) any Permitted Amount of any Unpaid Amount owed by the Investor
to the Company under the Investor Note or any other Underlying Agreement against (across or within each or all of the Underlying
Agreements) (x) any Unpaid Amounts owed by the Company to the Investor under the Series B Notes or (y) any Unpaid Amounts owed
by the Company to the Investor under any other Underlying Agreement ; provided that in the case of a Default Netting Event arising
from an Equity Conditions Failure, any Unpaid Amount owed by the Company to the Investor under any Underlying Agreement (excluding
the Series B Note) shall not be subject to Optional Netting hereunder unless such obligations result in an Event of Default.

 

(b)
Automatic Netting. Upon the occurrence of an Acceleration either occurring in connection with (i) a Bankruptcy Event of
Default Netting, (ii) Maturity Netting or (iii) any Prohibited Transfer, in each case, with respect to any Unpaid Amounts then
owed by the Investor to the Company under the Investor Note and subject to such applicable Netting pursuant to the terms of the
Investor Note (such related aggregate amount of Restricted Principal (as defined in the Series B Note) of the Series B Note subject
to such applicable Netting, each an “Acceleration Amount”), the Company shall, without further notice to the
Investor, Net an Acceleration Amount of Restricted Principal owed by the Company to the Investor under the Series B Note against
an amount of Principal (as defined in the Investor Note) then outstanding under the Investor Note equal to such Acceleration Amount.

 

 

 

 

2
Insert six month anniversary of the date hereof

 

    - 3 -

     

    

 

(c)
Miscellaneous.

 

(i) If
an Unpaid Amount is unascertainable, the Investor may, acting in a commercially reasonable manner, estimate the Unpaid Amount
thereof and Net in respect of the estimate, subject to accounting to the Company when the Unpaid Amount is ascertained. For the
avoidance of doubt, except with the written consent of the Investor to a different application of Netting against any Unpaid Amounts,
in the event of Optional Netting pursuant to paragraph (a) above, if Unpaid Amounts exist with respect to both the Series B Notes
and other Underlying Agreements, the Netting shall be applied first to obligations under such other Underlying Agreements (until
such obligations are satisfied in full) and thereafter to obligations under the Series B Notes.

 

(ii)
 All Netting provisions of the Investor Note, including without limitation the provisions
set forth in Section 7 of the Investor Note, are hereby incorporated in this Agreement and made a part hereof as if such provisions
were set forth herein.

 

(iii) The
right of Netting provided for in this Section 3 is in addition to but without duplication of, and not in limitation of, any other
right or remedy available to the Parties, whether arising under this Agreement or any Underlying Agreement, or the Pledge Agreement
(as defined in the Securities Purchase Agreement) or any other agreement, under applicable law, in equity, or otherwise. The Netting
provided in this Section 3 shall be permitted without regard to fair market value of the Series B Note or the Investor Note at
any given time of determination and without giving effect to equitable subordination or any other condition effecting the rank
or priority of any Obligations under any Underlying Agreement.

 

(iv) The
Netting Party shall give the Other Party notice of any Netting pursuant to this Section 3, as soon as practicable thereafter,
provided that failure to give such notice shall not affect the validity of the Netting.

 

4.
Representations and Warranties. As of the later of (x) the Closing Date (as defined in the Securities Purchase Agreement)
and (y) the Closing Date (as defined in the Note Purchase Agreement) (such later date, the “Effective Date”),
each Party represents and warrants to the other Party that (i) it is duly organized, validly existing, and in good standing
under the laws of the jurisdiction of its incorporation, formation, or organization and any other jurisdictions where its activities
so require, has all necessary power and authority to execute and deliver this Agreement and to perform its obligations hereunder
and has taken all necessary actions to authorize such execution, delivery, and performance; (ii) the person signing this Agreement
on its behalf was duly authorized to do so on its behalf on the Effective Date; (iii) this Agreement and the Underlying Agreements
to which it is a party constitute its legal, valid, and binding obligations, enforceable against it in accordance with their terms,
subject to applicable bankruptcy, reorganization, insolvency, conservatorship, receivership, moratorium, or other similar laws
affecting creditors' rights generally and subject, as to enforceability, to equitable principles of general application (regardless
of whether enforcement is sought in a proceeding in equity or at law); (iv) its execution and delivery of this Agreement does
not contravene, or constitute a default under, any provision of applicable law or regulation (including, without limitation, any
order, decree, judgment, injunction, or other judicial or governmental restriction applicable to such Party or any portion of
its assets) or of the organizational documents of such Party, or of any material agreement, judgment, injunction, order, decree
or other instrument binding upon such Party or result in the creation or imposition of any lien on any asset of such Party other
than as provided herein; and (v) the jurisdiction of the Company’s incorporation, formation, or organization and the location
of its chief executive office are correctly set forth in the Underlying Agreements.

 

    - 4 -

     

    

 

5.
Interpretation. The Parties intend that (a) this Agreement constitute and be deemed to be a “master netting agreement”
(or any substantially similar term) and that the Parties be deemed to be “master netting agreement participants” (or
any substantially similar term) within the meaning of, and as such terms are used in, any law, rule, regulation, statute, or order
applicable to the Parties' rights herein, whether now or hereafter enacted or made applicable, including, but not limited to,
the Bankruptcy Code at 11 U.S.C. §§ 101(25), 101(47), 101(53B), 741(7) and 761(4); and (b) all Netting effectuated
pursuant to this Agreement or any Underlying Agreement, be governed by the following Bankruptcy Code sections in the event of
the bankruptcy of either Party: (i) Sections 555, 556, 559 and 560; (ii) Section 362(b)(6), (7) and/or (17); (iii) Sections 546(e)-(g);
and (iv) Section 548(d)(2). The Parties also agree that such Netting contemplated hereunder or under any Underlying Agreement
arise under “securities contracts” and constitute “settlement payments” as set forth in Sections 101 and
741 of the Bankruptcy Code. The Parties further intend that the Underlying Agreements constitute “securities contracts”
as such term is defined in the Bankruptcy Code. Moreover, with respect to any Underlying Agreement, each Party thereto constitutes
a “stockbroker”, “financial institution” or “securities clearing agency” within the meaning
of, and as such terms are used in the Bankruptcy Code and/or any law, rule, regulation, statute, or order applicable to the Parties'
rights herein, whether now or hereafter enacted or made applicable.

 

6.
Conflicts and Inconsistencies. In the event of any conflict or inconsistency between any provision of this Agreement and any
provision of any Underlying Agreement concerning the matters set forth in this Agreement, the provisions of this Agreement shall
govern.

 

7.
Miscellaneous.

 

(a)
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law
or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any
such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. The Company
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 be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 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 Company or any of their
respective properties, assets 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 Company, or any of its properties,
assets 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 Company hereby waives such right to the extent permitted by law and hereby consents to such
relief and enforcement as provided in this Agreement.

 

    - 5 -

     

    

 

(b)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document
format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original
thereof.

 

(c)
Headings; Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to
include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,”
“include” and words of like import shall be construed broadly as if followed by the words “without limitation.”
The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement
instead of just the provision in which they are found.

 

(d)
Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other jurisdiction. The Parties intend that this Agreement
be construed to give full effect to the intent of the Parties with respect to the Netting provisions contained herein. If any
portion of the Netting contemplated herein shall be in any respect deemed or held to be invalid, illegal, or unenforceable, all
other provisions of this Agreement shall survive.

 

    - 6 -

     

    

 

(e)
Amendments. No provision of this Agreement may be amended or waived other than by an instrument in writing signed by the
Company and the Investor.

 

(f)
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement shall be governed by the provisions of Section 9(f) of the Securities Purchase Agreement.

 

(g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. No party may assign this Agreement or any rights or obligations hereunder without the prior written consent
of the other party.

 

(h)
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i) Survival.
The representations, warranties, agreements and covenants shall survive the Effective Date. The Investor shall be responsible
only for its own representations, warranties, agreements and covenants hereunder.

 

(j) Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and
shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

 

(k)
Construction. 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) No
Waiver. A failure or delay in exercising any right, power, or privilege in respect of any Underlying Agreement or
this Agreement will not be presumed to operate as a waiver of that right, power, or privilege, and a single or partial
exercise of any right, power, or privilege will not be presumed to preclude any subsequent or further exercise of that right,
power, or privilege, or the exercise of any other right, power, or privilege.

 

(m) Term.
This Agreement shall continue in effect from the Effective Date until terminated by agreement of the Parties or, if earlier,
such time as no Investor Note remains outstanding.

 

[Signature
Page Follows]

 

    - 7 -

     

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused their respective signature page to this Master Netting Agreement
to be duly executed as of the date first written above.

 

	 	COMPANY:
	 	 
	 	CHINA
    SXT PHARMACEUTICALS, INC.
	 	 	 
	 	By:	                           
	 	 	Name:
	 	 	Title:

 

     

     

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused their respective signature page to this Master Netting Agreement
to be duly executed as of the date first written above.

 

	 	INVESTORS:
	 	 
	 	[INVESTOR]
	 	 	 
	 	By:	                           
	 	 	Name:
	 	 	Title:

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