Document:

Unassociated Document

    Exhibit
10.24

     

    SECURITIES
PURCHASE AGREEMENT

     

    THIS SECURITIES PURCHASE
AGREEMENT (the “Agreement”) is entered into as
of April 9, 2010, by and among China Yongxin Pharmaceuticals Inc., a Delaware
corporation (the “Company”) and the investors
listed on the Schedule of Purchasers attached hereto (individually, a “Purchaser” and collectively,
the “Purchasers”).

     

    RECITALS

     

    A. 
         The Company and each Purchaser are executing
and delivering this Agreement in reliance upon the exemption from securities
registration afforded by Regulation S (“Regulation S”) as
promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act
of 1933, as amended (the “1933
Act”);

     

    B. 
         The parties desire that, upon the terms and
subject to the conditions contained herein, the Company shall issue and sell to
the Purchasers, as provided herein, and the Purchasers shall purchase, in the
aggregate: (i) 5,890,500 shares of common stock, par value $0.001 per share (the
“Common Stock”); and
(ii) share purchase warrants (the “Warrants”) in the form
attached hereto as Exhibit A, to purchase up to an
additional 5,890,500 shares of the Company’s Common Stock (the “Warrant Shares”) (as
appropriately adjusted for any stock splits, reverse stock splits,
recapitalizations and other similar events occurring subsequent to the date
hereof, referred to herein as “Recapitalizations”) at an
exercise price of $0.50 per share; in exchange for an aggregate purchase price
of USD $1,178,100 (the “Offering”); and

     

    C. 
         The shares of Common Stock purchased
hereunder, the Warrants and the Warrant Shares are collectively referred to
herein as the “Securities”.

     

    NOW, THEREFORE, in
consideration of the mutual covenants and other agreements contained in this
Agreement the Company and the Purchasers hereby agree as follows:

     

    1. 
         PURCHASE AND SALE OF
SECURITIES.

     

    (a) 
       Purchase of
Securities.

     

    (i) 
         The Company shall issue and sell to each
Purchaser, and each Purchaser severally, but not jointly, agrees to purchase the
Securities from the Company on the Closing Date (as defined below), set forth on
the Schedule of Investors on Schedule I, for the
purchase price (“Purchase
Price”) indicated thereon.  The consummation of the transactions
contemplated herein shall be coordinated though and take place at the offices of
Richardson & Patel LLP at 10900 Wilshire Boulevard, Suite 500, Los Angeles,
California 90024, upon the satisfaction or waiver of all conditions to closing
set forth in this Agreement (the “Closing”).

     

    (ii) 
         On the date and at the time of Closing (“Closing Date”), each Purchaser
shall deliver their applicable Purchase Price by wire transfer of immediately
available funds to an account designated by the Company, and the Company shall
issue the Securities purchased by each of the Purchasers and deliver the same to
a designated representative of the Purchaser.

     

    (iii) 
         The aggregate purchase price for the Units to
be purchased by each Purchaser at the Closing (the “Purchase Price”) shall be the
amount set forth opposite such Purchaser’s name in column 5 of the Schedule of
Purchasers.  If the Purchaser is paying the Purchase Price in Chinese
Renminbi (“RMB”), the
applicable exchange rate from RMB to U.S. Dollars shall be the exchange rate at
the close of business on the business day immediately preceding the Closing
Date, as published by the Bank of China.

     

    (b) 
         Warrants.  On
the Closing Date, the Company will issue and deliver the Warrants to the
Purchasers.  Warrants to purchase five Shares will be issued for each one
dollar of Purchase Price as set forth on Schedule I.  The
exercise price to acquire a Warrant Share upon exercise of a Warrant shall be
$0.50 per share.   The Warrants shall be exercisable until two (2)
years after the Closing Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (c) 
         Allocation of Purchase
Price.   The Purchase Price will be allocated by each
Purchaser, among the components of the Securities so that each component of the
Securities will be fully paid and non-assessable.

     

    2. 
    PURCHASER REPRESENTATIONS
AND WARRANTIES.

     

    Each
Purchaser hereby severally, and not jointly, represents and warrants to the
Company that:

     

    (a) 
         Purchase for Own
Account.  Purchaser represents that it is acquiring ownership of the
Securities solely for investment for such person’s own account not as a nominee
or agent, and not with a view to the resale or distribution of any part thereof,
and that such party has no present intention of selling, granting any
participation in, or otherwise distributing the same.  The acquisition by
Purchaser of any of the Securities shall constitute confirmation of the
representation by Purchaser that Purchaser does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to
any of the Securities.

     

    (b) 
         Disclosure of
Information.  Purchaser has received all the information it
considers necessary or appropriate for deciding whether to acquire the
Securities.  Purchaser has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of
the Securities and the business, prospects and financial condition of the
Company.

     

    (c) 
         Investment
Experience.  Purchaser represents that it can bear the economic risk
of its investment, and has such knowledge and experience in financial or
business matters that it is capable of evaluating the merits and risks of the
investment in the Securities.  If the Purchaser is not an individual,
Purchaser also represents it has not been organized as an entity for the purpose
of acquiring the Securities.  Purchaser is aware of the risk involved in
its investment in the Securities and has determined that such investment is
suitable for Purchaser in light of its financial circumstances and available
investment opportunities.

     

    (d) 
        Not a U.S.
Person.   Purchaser (i) is domiciled and has its principal
place of business outside the United States; (ii) certifies it is not acquiring
the Securities for the account or benefit of any U.S. Person; and (iii)
certifies that at the time of the Closing, Purchaser will be located outside the
United States.  Furthermore, the Purchaser certifies that the Purchaser
is not any of the
following (a “U.S.
Person”):

     

    
      	 
      	
              (i)

            	
              a
      natural person resident in the United
States;

            

    

     

    
      	 
      	
              (ii)

            	
              a
      partnership or corporation organized or incorporated under the laws of the
      United States;

            

    

     

    
      	 
      	
              (iii)

            	
              an
      estate of which any executor or administrator is a U.S.
      person;

            

    

     

    
      	 
      	
              (iv)

            	
              a
      trust of which any trustee is a U.S.
person;

            

    

     

    
      	 
      	
              (v)

            	
              an
      agency or branch of a foreign entity located in the United
      States;

            

    

     

    
      	 
      	
              (vi)

            	
              a
      non-discretionary account or similar account (other than an estate or
      trust) held by a dealer or other fiduciary for the benefit or account of a
      U.S. person;

            

    

     

    
      	 
      	
              (vii)

            	
              a
      discretionary account or similar account (other than an estate or trust)
      held by a dealer or other fiduciary organized, incorporated, or (if an
      individual) resident in the United States;
or

            

    

     

    
      	 
      	
              (viii)

            	
              a
      partnership or corporation organized or incorporated under the laws of any
      foreign jurisdiction, that has been is formed by a U.S.
      person.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (e) 
        No Registration; Regulation
S.  Purchaser has been advised and acknowledges: (i) that the
Securities have not been, and when issued, will not be registered under the 1933
Act, the securities laws of any state of the United States or the securities
laws of any other country; (ii) that in issuing and selling the Securities
to Purchaser, the Company is relying upon the “safe harbor” provided by
Regulation S and/or on Section 4(2) under the Act; (iii) that it is a condition
to the availability of the Regulation S safe harbor that the Securities not be
offered or sold in the United States or to a U.S. Person until the expiration of
a period of one year following the Closing Date; (iv) that, notwithstanding the
foregoing, during the Restricted Period the Securities may be offered and sold
by the holder thereof only if such offer and sale is made in compliance with the
terms of this Agreement and either: (A) if the offer or sale is within the
United States or to or for the account of a U.S. Person (as such terms are
defined in Regulation S), the securities are offered and sold pursuant to an
effective registration statement or pursuant to Rule 144 under the Act or
pursuant to an exemption from the registration requirements of the Act; or (B)
the offer and sale is outside the United States and is not made to a U.S.
Person.

     

     (f) 
         No Directed
Selling.  Purchaser has not engaged, nor is it aware that any party
has engaged, and Purchaser will not engage or cause any third party to engage in
any “directed selling” efforts (as such term is defined in Regulation S) in the
United States with respect to the Securities.  Specifically, the Purchaser
has not taken any action for purposes of, or could have the effect of,
conditioning the market or arousing interest for the Securities in the United
States, and the Purchaser has not placed any advertisements in any publication
or made any public announcement in any publication in the United States
regarding the offering of the Securities.

     

    (g) 
        Offshore
Transaction.  At the time of offering to Purchaser and communication
of Purchaser’s order to acquire the Securities and at the time of Purchaser’s
execution of this Agreement, the Purchaser was located outside the United
States.

     

    (h) 
        Not a
Distributor.  Purchaser is not a “distributor” as such term is
defined in Regulation S, and Purchaser nor any affiliate, representative or
agent of the Purchaser is a “dealer” as such term is defined in the Act. 
Specifically, the Purchaser does not intend to act as a distributor of the
Securities to any person, nor has the Purchaser entered into any agreement to
distribute the Securities.  The Purchaser is not in the business of buying,
selling, trading or brokering securities on behalf of others.

     

    (i) 
         Compliance with Non-U.S.
Laws.  Purchaser hereby represents that Purchaser has complied with
all local laws applicable to it, for the purchase of the Securities and entry
into this Agreement, including (i) the legal requirements of Purchaser’s
jurisdiction for the purchase and acquisition of the Securities, (ii) any
foreign exchange restrictions applicable to such purchase and acquisition, (iii)
any governmental or other consents that may need to be obtained, and (iv) the
transfer, income tax and other tax regulations, if any, which may be relevant to
the purchase, holding, redemption, sale, or transfer of the Securities. 
Purchaser’s subscription, purchase, acquisition and payment for, and Purchaser’s
continued beneficial ownership of, the Securities will not violate any
applicable securities or other laws of Purchaser’s jurisdiction.

     

    (j) 
         Legends. 
Purchaser understands that the certificates or other instruments representing
the Securities shall bear restrictive legends as required under U.S. securities
laws, and a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of such stock certificates),
which will restrict the transfer of the Securities:

     

    REGULATION S
LEGENDS

    

    “THE
SHARES ACQUIRABLE UNDER THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES
ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION; HEDGING
TRANSACTIONS INVOLVING THE SHARES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS
IN COMPLIANCE WITH THE SECURITIES ACT.”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    “THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES
ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION; HEDGING
TRANSACTIONS INVOLVING THE SHARES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS
IN COMPLIANCE WITH THE SECURITIES ACT.”

    

    The
legends set forth above shall be removed and the Company shall issue a
certificate without such legends to the holder of the Securities upon which it
is stamped, if, unless otherwise required by state securities laws, (i) such
Securities are registered for resale under the 1933 Act, (ii) in connection with
a sale, assignment or other transfer, such holder provides the Company with an
opinion of counsel, in a generally acceptable form, to the effect that such
sale, assignment or transfer of the Securities may be made without registration
under the applicable requirements of the 1933 Act, or (iii) such holder provides
the Company with reasonable assurance that the Securities can be sold, assigned
or transferred pursuant to Regulation S, Rule 144 or Rule 144A.

     

    (k) 
       Validity;
Enforcement.  This Agreement to which such Purchaser is a party have
been duly and validly authorized, executed and delivered on behalf of such
Purchaser and shall constitute the legal, valid and binding obligations of such
Purchaser enforceable against such Purchaser in accordance with their respective
terms, except as such enforceability may be limited by general principles of
equity or to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the
enforcement of applicable creditors’ rights and remedies.

     

    (l) 
         Residency;
Organization.  If such Purchaser is an entity, (i) such Purchaser is
a resident of that jurisdiction specified below its address on the Schedule of
Purchasers and (ii) such Purchaser is a validly existing corporation, limited
partnership, or limited liability company (or similar entity) and has all
requisite corporate, partnership or limited liability company power and
authority to invest in the Securities pursuant to this Agreement.

     

    (m) 
       Brokers and
Finders.  No Person will have, as a result of the transactions
contemplated by the Transaction Documents, any valid right, interest or claim
against or upon the Company, any Subsidiary or any Purchaser for any commission,
fee or other compensation pursuant to any agreement, arrangement or
understanding entered into by or on behalf of such Purchaser.

     

    3. 
    REPRESENTATIONS AND
WARRANTIES OF
THE COMPANY.

     

    The
Company represents and warrants to each of the Purchasers that:

     

    (a) 
       Organization and
Qualification.  The Company and its “Subsidiaries” (which for
purposes of this Agreement means any entity in which the Company, directly or
indirectly, owns capital stock or holds an equity or similar interest, after
giving effect to the Share Exchange) are entities duly organized and validly
existing in good standing under the laws of the jurisdiction in which they are
formed, and have the requisite power and authority to own their properties
and to carry on their business as now being conducted.  Each of the Company
and its Subsidiaries is duly qualified as a foreign entity to do business and is
in good standing in every jurisdiction in which its ownership of property or the
nature of the business conducted by it makes such qualification necessary,
except to the extent that the failure to be so qualified or be in good standing
would not have a Material Adverse Effect.  As used in this Agreement,
“Material Adverse
Effect” means any material adverse effect on the business, properties,
assets, operations, results of operations, condition (financial or otherwise) or
prospects of the party making the representations, including its subsidiaries,
taken as a whole, or on the transactions contemplated hereby and the other
Transaction Documents or by the agreements and instruments to be entered into in
connection herewith or therewith, or on the authority or ability of the such
party to perform its obligations under the Transaction Documents (as
defined below).

     

    (b) 
       Authorization; Enforcement;
Validity.  The Company has the requisite power and authority to
enter into and perform its obligations under this Agreement and the Warrants,
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 Securities in accordance with the terms
hereof and thereof.  The execution and delivery of the Transaction
Documents by the Company and the consummation by the Company of the transactions
contemplated hereby and thereby, including, without limitation, the issuance of
the Securities, have been duly authorized by the Company’s Board of Directors
and no further filing, consent, or authorization is required by the Company, its
Board of Directors or its shareholders, except for post-closing filings relating
to the Securities, or notifications required to be made under federal or state
securities laws.  This Agreement and the other Transaction Documents of
even date herewith have been duly executed and delivered by the Company, and
shall constitute the legal, valid and binding obligations of the Company,
enforceable against the Company 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) 
       No Conflicts. 
The execution, delivery and performance of the Transaction Documents by the
Company and the consummation by the Company of the transactions contemplated
hereby and thereby (including, without limitation, the issuance of the Warrants,
and reservation for issuance and issuance of the Warrant Shares) will not (i)
result in a violation of the articles of incorporation of the Company, as
amended (“Articles of
Incorporation”)
or bylaws of the Company, as amended (“Bylaws”) or (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or
both would become a default) under, or result in termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which
the Company or any of its Subsidiaries is a party, or (iii) result in a
violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations and the rules and regulations
of the OTC Bulletin Board (the “Principal Market”)) applicable
to the Company or any of its Subsidiaries or by which any property or asset of
the Company or any of its Subsidiaries is bound or affected, except in the cases
of clauses (ii) and (iii) for any such conflicts, violations or defaults which
can reasonably be expected to have no Material Adverse Effect.

     

    (d) 
       Consents.  The
Company is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court, governmental agency or any
regulatory or self-regulatory agency 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, except for post-closing securities filings or notifications to be made
under federal or state securities laws.  All consents, authorizations,
orders, filings and registrations which the Company is required to obtain
pursuant to the preceding sentence have been obtained or effected on or prior to
the Closing Date.

     

    (e) 
       Conduct of Business;
Regulatory Permits.  Neither the Company nor its Subsidiaries is in
violation of any term of or in default under its corporate charter or their
organizational charter or articles of incorporation or bylaws,
respectively.  Neither the Company nor any of its Subsidiaries is in
violation of any judgment, decree or order or any statute, ordinance, rule or
regulation that are currently necessary or applicable to the operation of the
Company or its subsidiaries as currently conducted, and neither the Company nor
any of its Subsidiaries will conduct its business in violation of the foregoing
except for possible violations which would not, individually or in the
aggregate, have a Material Adverse Effect.

     

    (f) 
       Acknowledgment Regarding
Purchaser’s Purchase of
Securities.  The Company acknowledges and agrees that each Purchaser
is acting solely in the capacity of an arm’s length purchaser with respect to
the Transaction Documents and the transactions contemplated hereby and thereby
and that no Purchaser is (i) an officer or director of the Company, (ii) an
Affiliate of the Company or (iii) to the knowledge of the Company, a “beneficial
owner” of more than 10% of the shares of Common Stock (as defined for purposes
of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “1934 Act”)).

     

    (g) 
       No General
Solicitation.  Neither the Company, nor any of its Affiliates, nor
any Person acting on its or their behalf, has 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 Securities.

     

    (h) 
       Private Placement; No
Integrated Offering.  Subject to the accuracy of the Purchaser’s
representations and warranties in Section 2 of this Agreement, the offer and
sale by the Company of the Securities in conformity with the terms of this
Agreement constitute transactions that are exempt from registration under the
1933 Act.  None of the Company, its Subsidiaries, any of their Affiliates,
and any Person acting on their 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 any of the Securities
under the 1933 Act or cause this offering of the Securities to be integrated
with prior offerings by the Company for purposes of the 1933 Act or any
applicable stockholder approval provisions, including, without limitation, under
the rules and regulations of any exchange or automated quotation system on which
any of the securities of the Company are listed or designated.  None of the
Company, its Subsidiaries, their Affiliates and any Person acting on their
behalf will take any action or steps referred to in the preceding sentence that
would require registration of any of the Securities under the 1933 Act or cause
the offering of the Securities to be integrated with other
offerings.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (i) 
        Company’s Knowledge. 
For purposes of this Agreement, “knowledge of the Company” or the “Company’s
knowledge” means the actual knowledge of the executive officers (as defined in
Rule 405 under the 1933 Act) of the Company, after due inquiry.

     

    4. 
    COVENANTS.

     

    (a) 
       Best Efforts. 
Each party shall use its 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) 
       Conduct of
Business.  The business of the Company and its Subsidiaries shall
not be conducted in violation of any law, ordinance or regulation of any
governmental entity, except where such violations would not result, either
individually or in the aggregate, in a Material Adverse Effect.

     

    (c) 
       No Conflicting
Agreements.  The Company will not take any action, enter into any
agreement or make any commitment that would conflict or interfere in any
material respect with the Company’s obligations to the Purchasers under the
Transaction Documents.

     

    (d) 
       Compliance with
Laws.  The Company will comply in all material respects with all
applicable laws, rules, regulations, orders and decrees of all governmental
authorities.

     

    (e) 
       Reservation of Common
Stock.  The Company shall at all times reserve and keep available
out of its authorized but unissued shares of Common Stock, solely for the
purpose of providing for the exercise of the Warrants, such number of shares of
Common Stock as shall from time to time be issuable upon the due exercise of the
Warrants.

     

    5. 
    CONDITIONS TO THE
COMPANY’S OBLIGATION TO
SELL.

     

    The
obligation of the Company hereunder to issue and sell the Securities to each
Purchaser 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 Company’s sole benefit and may be waived by the Company
at any time in its sole discretion by providing each Purchaser with prior
written notice thereof:

     

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

     

    (b) 
       Such Purchaser and each other Purchaser shall have
delivered the Purchaser’s Purchase Price to an account designated by the Company
by wire transfer of immediately available funds.

     

    (c) 
       The representations and warranties of such Purchaser
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), and such Purchaser 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 such Purchaser at or prior to the Closing
Date.

     

    6. 
    CONDITIONS TO EACH
PURCHASER’S OBLIGATION TO
PURCHASE.

     

    The
obligation of each Purchaser hereunder to purchase the Securities 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 each Purchaser’s
sole benefit and may be waived by such Purchaser at any time in its sole
discretion by providing the Company with prior written notice
thereof:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (a) 
       The Company shall have executed and delivered to such
Purchaser (A) each of the Transaction Documents, and (B) the Warrants being
purchased by such Purchaser at the Closing pursuant to this
Agreement.

     

    (b) 
       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) and the Company shall have
performed, satisfied and complied in all respects with the covenants, agreements
and conditions required by the Transaction Documents to be performed, satisfied
or complied with by the Company at or prior to the Closing Date.

     

    (c) 
       The Company shall have obtained all governmental,
regulatory or third party consents and approvals, if any, necessary for the sale
of the Common Stock and Warrants, except for post-closing securities filings or
notifications required to be made under federal or state securities
laws.

     

    (d) 
       No judgment, writ, order, injunction, award or decree
of or by any court, or judge, justice or magistrate, including any bankruptcy
court or judge, or any order of or by any governmental authority, shall have
been issued, and no action or proceeding shall have been instituted by any
governmental authority, enjoining or preventing the consummation of the
transactions contemplated hereby or by the other Transaction
Documents.

     

    7. 
    TERMINATION.  In
the event that the Closing shall not have occurred with respect to a Purchaser
on or before twenty (20) Business Days from the date hereof due to the Company’s
or such Purchaser’s failure to satisfy the conditions set forth in Sections 5
and 6 above (and the nonbreaching party’s failure to waive such unsatisfied
condition(s)), the nonbreaching party shall have the option to terminate this
Agreement with respect to such breaching party at the close of business on such
date without liability of any party to any other party.  In the event of
termination by the Company or any Purchaser of its obligations to effect the
closing pursuant to this Agreement, written notice thereof shall forthwith be
given to the other Purchasers and the other Purchasers shall have the right to
terminate their obligations to effect the closing upon written notice to the
Company and the other Purchasers.  Nothing in this Section 7 shall be
deemed to release any party from any liability for any breach by such party of
the terms and provisions of this Agreement or the other Transaction Documents or
to impair the right of any party to compel specific performance by any other
party of its obligations under this Agreement or the other Transaction
Documents.

    

    8. 
    COVENANTS.

     

    (a) 
       Piggy-back
Registration.  If the Company at any time proposes to register any
of its common stock, whether outstanding or issuable under convertible
securities or options and warrants (“Registrable Securities”) under
the Securities Act of 1933, as amended (“1933 Act”) for sale to the
public, whether for its own account or for the account of other security holders
or both, except with respect to registration statements on Forms S-4, S-8 or
another form not available for registering the common stock for sale to the
public, provided such shares are not otherwise registered for resale by the
Purchaser pursuant to an effective registration statement, the Company will
cause any Registrable Securities issued hereunder that have not been previously
registered to be included with the securities to be covered by the registration
statement proposed to be filed by the Company.

     

    (b) 
       Underwritten
Public
Offerings.  In the event that any registration pursuant to this
Section 8 shall be, in whole or in part, an underwritten public offering of
common stock of the Company, the number of shares of Registrable Securities to
be included in such an underwriting may be reduced by the managing underwriter
if and to the extent that the Company and the underwriter shall reasonably be of
the opinion that such inclusion would adversely affect the marketing of the
securities by the Company therein.   In connection with any
underwritten public offering of the Company’s securities, the Purchaser agrees
to enter into a lockup agreement in a form and on terms reasonably acceptable to
the Company that may restrict the resale of the Securities for a period of 180
days or more, in accordance with the recommendations of such
underwriter.

     

    (c) 
       Timing of
Registration.  Notwithstanding any of the provisions herein, if the
officers of the Company determine that it is in the best interest of the Company
to do so, the Company may withdraw or delay or suffer a delay of any
registration statement referred to in this Section 8 without thereby incurring
any liability to the Purchaser due to such withdrawal or delay.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    9. 
    MISCELLANEOUS.

     

    (a) 
         Notices. 
 All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing and, unless
otherwise specified herein, shall be (i) personally served, (ii) deposited in
the mail, registered or certified, return receipt requested, postage prepaid,
(iii) delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or permitted
to be given hereunder shall be deemed effective (a) upon hand delivery or
delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a
business day during normal business hours where such notice is to be received),
or the first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be
received) or (b) on the first business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur.  The addresses
for such communications shall be: (i) if to the Company to: China Yongxin
Pharmaceuticals Inc., 927 Canada Court, City of Industry, CA 91748, Attn:
Yongxin Liu, CEO, facsimile: (626) 581-9138, with a copy to: Richardson &
Patel, LLP, 10900 Wilshire Blvd., Suite 500, Los Angeles, CA 90024, Attn: Nimish
Patel, Esq., facsimile: (310) 208-1154, and (ii) if to the Purchaser, to the
name, address and facsimile number set forth on the signature page(s) of this
Agreement.

     

     (b) 
       Interpretation. The headings
contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement. References to
Sections refer to sections of this Agreement unless otherwise
stated.

     

    (c) 
       Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Agreement shall remain
in full force and effect and shall in no way be affected, impaired or
invalidated and the parties shall negotiate in good faith to modify this
Agreement to preserve each party’s anticipated benefits under this
Agreement.

     

    (d) 
       Miscellaneous. This Agreement
(together with all other documents and instruments referred to herein): (a)
constitutes the entire agreement and supersedes all other prior agreements and
undertakings, both written and oral, among the parties with respect to the
subject matter hereof; (b) except as expressly set forth herein, is not intended
to confer upon any other person any rights or remedies hereunder and (c) shall
not be assigned by operation of law or otherwise, except as may be mutually
agreed upon by the parties hereto.

     

    (e) 
       Governing Law. This
Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of California. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
California, without regard to the principles of conflicts of law thereof. 
Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement
(whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced exclusively in
the state and federal courts sitting in the City of Los Angeles.  Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City of Los Angeles, County of Los Angeles for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to
the enforcement of the Agreement), 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 improper or is an  inconvenient venue for such
proceeding.  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 via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. 
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any other manner permitted by law.  If either party shall
commence an action or proceeding to enforce any provisions of the Agreement,
then the prevailing party in such action or proceeding shall be reimbursed by
the other party for its reasonable attorneys’ fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or
proceeding.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

     (f) 
        Counterparts and Facsimile
Signatures. This Agreement may be executed in two or more counterparts,
which together shall constitute a single agreement. This Agreement and any
documents relating to it may be executed and transmitted to any other party by
facsimile, which facsimile shall be deemed to be, and utilized in all respects
as, an original, wet-inked manually executed document.

     

    (g) 
       Amendment.  This
Agreement may be amended, modified or supplemented only by an instrument in
writing executed by the Company and the Purchasers.  Notwithstanding the
foregoing, the Company and the then current Purchasers acknowledge that
additional persons or entities (“Additional Investors”) may
become party to this Agreement after the date of this Agreement upon their
execution of this Agreement as a “Purchaser” and the Company’s delivery of an
executed counterpart to such Additional Investors.

     

    (h) 
       Parties In Interest. 
Except as otherwise provided herein, the terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective heirs, legal
representatives, successors and assigns of the parties hereto.

     

    (i) 
        Waiver.  No
waiver by any party of any default or breach by another party of any
representation, warranty, covenant or condition contained in this Agreement
shall be deemed to be a waiver of any subsequent default or breach by such party
of the same or any other representation, warranty, covenant or condition. No
act, delay, omission or course of dealing on the part of any party in exercising
any right, power or remedy under this Agreement or at law or in equity shall
operate as a waiver thereof or otherwise prejudice any of such party’s rights,
powers and remedies. All remedies, whether at law or in equity, shall be
cumulative and the election of any one or more shall not constitute a waiver of
the right to pursue other available remedies.

     

    (j) 
        Expenses.  At
or prior to the Closing, the parties hereto shall pay all of their own expenses
relating to the transactions contemplated by this Agreement, including, without
limitation, the fees and expenses of their respective counsel and financial
advisers.

     

    [Signature Page
Follows]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, each Purchaser and the Company have executed and delivered this
Securities Purchase Agreement as of the date first written above.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    COMPANY:

                                  	 
      	
                                    CHINA
      YONGXIN PHARMACEUTICALS INC.

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                      

                                  
	 
      	 
      	
                                    Yongxin
      Liu

                                  
	 
      	 
      	
                                    Chief
      Executive Officer

                                  
	 
      	 
      	 
      
	
                                    PURCHASERS:

                                  	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                                      

                                  
	 
      	 
      	
                                    Name
      of Purchaser (print)

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                      

                                  
	 
      	 
      	
                                    Signature

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                      

                                  
	 
      	 
      	
                                    Authorized
      Representative

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                      

                                  
	 
      	 
      	
                                    Title

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                    Address
      of Purchaser:

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                      

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                      

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                      

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                    Telephone
      No.: 

                                  	
                                      

                                  
	 
      	 
      	 
      
	 
      	 
      	
                                    Facsimile
      No.: 

                                  	
                                      

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        	 
      	
                  

              	
                Investment
      Amount in US Dollars: $

              	
                  

              

      

    

      

    
      
         

      

      
         

        
          

        

      

      
         

      

    
  

    EXHIBITS

    
    

    Exhibit
A              Form
of Warrant

     

    SCHEDULES

    
 

    Schedule
I           Schedule of
Purchasers

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
I

     

    SCHEDULE
OF PURCHASERS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  (1)

                                	 
      	 	
                                  (2)

                                	 
      	 
      	
                                  (3)

                                	 
      	 
      	
                                  (4)

                                	 
      	 
      	
                                  (5)

                                	 
      
	
                                  Purchaser

                                	 
      	 	
                                  Address and

                                  Facsimile Number for Notices

                                	 
      	 
      	
                                  Number of Shares of

                                  Purchased Common

                                  Stock

                                	 
      	 
      	
                                  Number of 

                                  Warrant Shares

                                	 
      	 
      	
                                  Purchase Price

                                	 
      
	Seatech
      Investments Limited	 	 	
                                  Unit
      818, 81 Floor, China Insurance Group

                                  Building,
      No. 73 Connaught Rd. Central, Hong Kong

                                	 	 	 	2,937,000	 	 	 	2,937,000	 	 	$	587,400	 
	
                                    

                                	 
      	 	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	Fame
      Win Investments Limited	 
      	 	
                                  

                                    Unit
      818, 81 Floor, China Insurance Group

                                    Building,
      No. 73 Connaught Rd. Central, Hong Kong

                                  

                                	 
      	 
      	 
      	2,953,500	 
      	 
      	 
      	2,953,500	 
      	 
      	$	590,700	 
      
	 
      	 
      	 	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                        

                      

                    

                  

                

              

            

          

        

      

    

      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule

     

    Schedule
prepared in accordance with Instruction 2 to Item 601 of Regulation
S-K

     

    The
Securities Purchase Agreements dated April 9, 2010, are substantially identical
in all material respects except as to the subscribers, the number of shares of
purchased common stock, number of warrant shares, and the purchase
price.

    
 

    
      
        
          
            
              
                	
                        Subscribers

                      	 
      	
                        Number of 

                        Shares of 

                        Purchased 

                        Common 

                        Stock

                      	 
      	 
      	
                        Number of 

                        Warrant

                        Shares

                      	 
      	 
      	
                        Purchase

                        Price

                      	 
      
	
                        Seatech
      Investments Limited

                      	 
      	 
      	
                        2,937,000

                      	 
      	 
      	 
      	
                        2,937,000

                      	 
      	 
      	
                        $

                      	
                        587,400

                      	 
      
	
                        Fame
      Win Investments Limited

                      	 
      	 
      	
                        2,953,500

                      	 
      	 
      	 
      	
                        2,953,500

                      	 
      	 
      	
                        $

                      	
                        590,700

                      	 
      
	
                        TOTAL

                      	 
      	 
      	
                        5,890,500

                      	 
      	 
      	 
      	
                        5,890,500

                      	 
      	 
      	
                        $

                      	
                        1,178,100Exhibit
10.25

    

    THE
SHARES ACQUIRABLE UNDER THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES
ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION; HEDGING
TRANSACTIONS INVOLVING THE SHARES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS
IN COMPLIANCE WITH THE SECURITIES ACT.

    

    
      	 
      	
              Right
      to Purchase __________ shares of Common Stock of China Yongxin
      Pharmaceuticals Inc. (subject to adjustment as provided
      herein)

            

    

    

    COMMON
STOCK PURCHASE WARRANT

    

    
      	
              No.
      2010-A-[____]

            	
              Issue
      Date:      April ___,
  2010

            

    

    

    CHINA
YONGXIN PHARMACEUTICALS INC., a corporation organized under the laws of the
State of Delaware (the “Company”), hereby certifies
that, for value received, _______________________________,
____________________________________________, or its assigns (the “Holder”), is entitled, subject
to the terms set forth below, to purchase from the Company at any time after the
Issue Date until 5:00 p.m., E.S.T. on the date which is the two year anniversary
of the Issue Date (the “Expiration Date”), up to
__________ fully paid and non-assessable shares of Common Stock at a per share
purchase price of $0.50.  The aforedescribed purchase price per share,
as adjusted from time to time as herein provided, is referred to herein as the
“Purchase
Price.”  The number and character of such shares of Common
Stock and the Purchase Price are subject to adjustment as provided
herein.  The Company may reduce the Purchase Price for some or all of
the Warrants, temporarily or permanently, provided such reduction is made as to
all outstanding Warrants for all Holders of such
Warrants.  Capitalized terms used and not otherwise defined herein
shall have the meanings set forth in that certain Securities Purchase Agreement
(the “Purchase
Agreement”), dated as of April ___, 2010, entered into by the Company,
the Holder and the other signatories thereto.

    
 

    As used
herein the following terms, unless the context otherwise requires, have the
following respective meanings:

     

    (A)           The
term “Company” shall
mean China Yongxin Pharmaceuticals Inc., a Delaware corporation, and any
corporation which shall succeed or assume the obligations of China Yongxin
Pharmaceuticals Inc. hereunder.

     

    (B)           The
term “Common Stock”
includes (i) the Company's Common Stock, $0.001 par value per share, as
authorized on the date of the Purchase Agreement, and (ii) any other securities
into which or for which any of the securities described in (i) may be
converted or exchanged pursuant to a plan of recapitalization, reorganization,
merger, sale of assets or otherwise.

     

    (C)           For
purposes of this Warrant, the “Fair Market Value” of a
share of Common Stock as of a particular date (the “Determination Date”) shall
mean:

     

    (a)           If
the Company's Common Stock is traded on an exchange or is quoted on the NASDAQ
Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New
York Stock Exchange or the American Stock Exchange, LLC, then the average of the
closing sale prices of the Common Stock for the five (5) Trading Days
immediately prior to (but not including) the Determination
Date;

     

    (b)           If
the Company's Common Stock is not traded on an exchange or on the NASDAQ Global
Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York
Stock Exchange or the American Stock Exchange, Inc., but is traded on the OTC
Bulletin Board or in the over-the-counter market or Pink Sheets, then the
average of the closing bid and ask prices reported for the five (5) Trading Days
immediately prior to (but not including) the Determination Date;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (c)           Except
as provided in clause (d) below and Section 3.1, if the
Company's Common Stock is not publicly traded, then as the Holder and the
Company agree, or in the absence of such an agreement, by arbitration in
accordance with the rules then standing of the American Arbitration Association,
before a single arbitrator to be chosen from a panel of persons qualified by
education and training to pass on the matter to be decided; or

     

    (d)           If
the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to
the Company's charter, then all amounts to be payable per share to holders of
the Common Stock pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per share in
respect of the Common Stock in liquidation under the charter, assuming for the
purposes of this clause (d) that all of the shares of Common Stock then
issuable upon exercise of all of the Warrants are outstanding at the
Determination Date.

     

    (D)         The
term “Other Securities”
refers to any stock (other than Common Stock) and other securities of the
Company or any other person (corporate or otherwise) which the holder of the
Warrant at any time shall be entitled to receive, or shall have received, on the
exercise of the Warrant, in lieu of or in addition to Common Stock, or which at
any time shall be issuable or shall have been issued in exchange for or in
replacement of Common Stock or Other Securities pursuant toSection 4 or
otherwise.

     

    (E)         The
term “Warrant
Shares” shall mean the Common Stock issuable upon exercise of this
Warrant.

     

    1.           Exercise of
Warrant.

     

    1.1.           Number of Shares Issuable
upon Exercise.  From and after the Issue Date through and
including the Expiration Date, the Holder hereof shall be entitled to receive,
upon exercise of this Warrant in whole in accordance with the terms
of Section 1.2 or
upon exercise of this Warrant in part in accordance with Section 1.3,
shares of Common Stock of the Company, subject to adjustment pursuant
to Section 4 below
and Section
12(b) of the Purchase Agreement.

     

    1.2.           Full
Exercise.  This Warrant may be exercised in full by the Holder
hereof by delivery to the Company of an original or facsimile copy of the form
of subscription attached as Exhibit A hereto
(the “Subscription
Form”) duly executed by such Holder and delivery within two days
thereafter of payment, in cash, wire transfer or by certified or official bank
check payable to the order of the Company, in the amount obtained by multiplying
the number of shares of Common Stock for which this Warrant is then exercisable
by the Purchase Price then in effect.  The original Warrant is not
required to be surrendered to the Company until it has been fully
exercised.

     

    1.3.           Partial Exercise.  This
Warrant may be exercised in part (but not for a fractional share) by delivery of
a Subscription Form in the manner and at the place provided in Section 1.2,
except that the amount payable by the Holder on such partial exercise shall be
the amount obtained by multiplying (a) the number of whole shares of Common
Stock designated by the Holder in the Subscription Form by (b) the Purchase
Price then in effect.  On any such partial exercise, provided the
Holder has surrendered the original Warrant, the Company, at its expense, will
forthwith issue and deliver to or upon the order of the Holder hereof a new
Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may request, the whole
number of shares of Common Stock for which such Warrant may still be
exercised.

     

    1.4.           Automatic
Exercise.   In the event this Warrant is exercisable
pursuant to the provisions of Section 2 hereof on a cashless basis as of the
close of the last trading day on or before the Expiration Date, then this
Warrant, to the extent not previously unexercised and subject to the limitation
in Section 10 of this Warrant shall be deemed to have been automatically
exercised without the requirement of any notice or delivery of the Subscription
Form, pursuant to the terms of Section 2.  Such Expiration Date will
be deemed the exercise date for purposes of determining the Warrant Share
Delivery Date and similar terms hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    1.5.           Company Acknowledgment.  The
Company will, at the time of the exercise of the Warrant, upon the request of
the Holder hereof, acknowledge in writing its continuing obligation to afford to
such Holder any rights to which such Holder shall continue to be entitled after
such exercise in accordance with the provisions of this Warrant. If the Holder
shall fail to make any such request, such failure shall not affect the
continuing obligation of the Company to afford to such Holder any such
rights.

     

    1.6.           Delivery of Stock Certificates, etc.
on Exercise. The Company agrees that, provided the full purchase price
listed in the Subscription Form is received as specified in Section 1.2, the
shares of Common Stock purchased upon exercise of this Warrant shall be deemed
to be issued to the Holder hereof as the record owner of such shares as of the
close of business on the date on which delivery of a Subscription Form shall
have occurred and payment made for such shares as aforesaid. As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within five (5) business days thereafter (“Warrant Share Delivery Date”),
the Company at its expense (including the payment by it of any applicable issue
taxes) will cause to be issued in the name of and delivered to the Holder
hereof, or as such Holder (upon payment by such Holder of any applicable
transfer taxes) may direct in compliance with applicable securities laws, a
certificate or certificates for the number of duly and validly issued, fully
paid and non-assessable shares of Common Stock (or Other Securities) to which
such Holder shall be entitled on such exercise.

     

    2.           Cashless
Exercise.

     

    (a)           Payment
upon exercise may be made at the option of the Holder either in (i) cash, wire
transfer or by certified or official bank check payable to the order of the
Company equal to the applicable aggregate Purchase Price, (ii) by delivery of
Common Stock issuable upon exercise of the Warrants in accordance with Section
(b) below or (iii) by a combination of any of the foregoing methods, for the
number of Common Stock specified in such form (as such exercise number shall be
adjusted to reflect any adjustment in the total number of shares of Common Stock
issuable to the holder per the terms of this Warrant) and the holder shall
thereupon be entitled to receive the number of duly authorized, validly issued,
fully-paid and non-assessable shares of Common Stock (or Other Securities)
determined as provided herein. Notwithstanding the immediately preceding
sentence, payment upon exercise may be made in the manner described in Section
2(b) below commencing one hundred and eighty (180) days after the Issue Date,
only with respect to Warrant Shares not included for
unrestricted public resale in an effective Registration Statement on the date
notice of exercise is given by the Holder.

    

    (b)           Subject
to the provisions herein to the contrary, if the Fair Market Value of one share
of Common Stock is greater than the Purchase Price (at the date of calculation
as set forth below), in lieu of exercising this Warrant for cash, the holder may
elect to receive shares equal to the value (as determined below) of this Warrant
(or the portion thereof being cancelled) by delivery of a properly endorsed
Subscription Form delivered to the Company by any means described in Section 13, in which
event the Company shall issue to the holder a number of shares of Common Stock
computed using the following formula:

     

    X=           Y
(A  -  B)

                            A

    

    Where    X=          the
number of shares of Common Stock to be issued to the Holder

    

    
      	 
      	
              Y=

            	
              the
      number of shares of Common Stock purchasable under the Warrant or, if only
      a portion of the Warrant is being exercised, the portion of the Warrant
      being exercised (at the date of such
  calculation)

            

    

     

    
      	 
      	
              A=

            	
              Fair
      Market Value

            

    

     

    
      	 
      	
              B=

            	
              Purchase
      Price (as adjusted to the date of such
  calculation)

            

    

     

    For
purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood
and acknowledged that the Warrant Shares issued in a cashless exercise
transaction in the manner described above shall be deemed to have been acquired
by the Holder, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued pursuant to the
Purchase Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    3.           Adjustment for
Reorganization, Consolidation, Merger, etc.

     

    3.1.           Fundamental Transaction. If,
at any time while this Warrant is outstanding, (A) the Company effects any
merger or consolidation of the Company with or into another entity, (B) the
Company effects any sale of all or substantially all of its assets in one or a
series of related transactions, (C) any tender offer or exchange offer (whether
by the Company or another entity) is completed pursuant to which holders of
Common Stock are permitted to tender or exchange their shares for other
securities, cash or property, (D) the Company consummates a stock purchase
agreement or other business combination (including, without limitation, a
reorganization, recapitalization, or spin-off) with one or more persons or
entities whereby such other persons or entities acquire more than the 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock
held by such other persons or entities making or party to, or associated or
affiliated with the other persons or entities making or party to, such stock
purchase agreement or other business combination), (E) any “person” or
“group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the
1934 Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3
under the 1934 Act), directly or indirectly, of 50% of the aggregate Common
Stock of the Company, or (F) the Company effects any reclassification of the
Common Stock or any compulsory share exchange pursuant to which the Common Stock
is effectively converted into or exchanged for other securities, cash or
property (in any such case, a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the
right to receive, for each Warrant Share that would have been issuable upon such
exercise immediately prior to the occurrence of such Fundamental Transaction, at
the option of the Holder, (a) upon exercise of this Warrant, the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration
(the “Alternate
Consideration”) receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event. For purposes of any such exercise, the
determination of the Purchase Price shall be appropriately adjusted to apply to
such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Purchase Price among the
Alternate Consideration in a reasonable manner reflecting the relative value of
any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as
to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction. To the extent necessary to effectuate
the foregoing provisions, any successor to the Company or surviving entity in
such Fundamental Transaction shall issue to the Holder a new warrant consistent
with the foregoing provisions and evidencing the Holder's right to exercise
such warrant into Alternate Consideration. The terms of any agreement pursuant
to which a Fundamental Transaction is effected shall include terms requiring any
such successor or surviving entity to comply with the provisions of
this Section
3.1 and insuring that this Warrant (or any such replacement
security) will be similarly adjusted upon any subsequent transaction analogous
to a Fundamental Transaction. “Black-Scholes Value” shall be
determined in accordance with the Black-Scholes Option Pricing Model obtained
from the “OV” function on Bloomberg L.P. using (i) a price per share of Common
Stock equal to the VWAP of the Common Stock for the Trading Day immediately
preceding the date of consummation of the applicable Fundamental Transaction,
(ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a
period equal to the remaining term of this Warrant as of the date of such
request and (iii) an expected volatility equal to the 100 day volatility
obtained from the HVT function on Bloomberg L.P. determined as of the Trading
Day immediately following the public announcement of the applicable Fundamental
Transaction.

    

    3.2.           Continuation of
Terms.  Upon any reorganization, consolidation, merger or
transfer (and any dissolution following any transfer) referred to in
this Section 3, this
Warrant shall continue in full force and effect and the terms hereof shall be
applicable to the Other Securities and property receivable on the exercise of
this Warrant after the consummation of such reorganization, consolidation or
merger or the effective date of dissolution following any such transfer, as the
case may be, and shall be binding upon the issuer of any Other Securities,
including, in the case of any such transfer, the person acquiring all or
substantially all of the properties or assets of the Company, whether or not
such person shall have expressly assumed the terms of this Warrant as provided
in Section 4.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    3.3           Share
Issuance.  Until the Expiration Date, if the Company shall
issue any Common Stock except for the Excepted Issuances (as defined in the
Purchase Agreement), prior to the complete exercise of this Warrant for a
consideration less than the Purchase Price then in effect at the time of such
issuance then, and thereafter successively upon each such issuance, the Purchase
Price shall be reduced to such other lower price for then outstanding
Warrants.  For purposes of this adjustment, the issuance of any
security or debt instrument of the Company carrying the right to convert such
security or debt instrument into Common Stock or of any warrant, right or option
to purchase Common Stock shall result in an adjustment to the Purchase Price
upon the issuance of the above-described security, debt instrument, warrant,
right, or option if such issuance is at a price lower than the Purchase Price in
effect upon such issuance and again at any time upon any actual, permitted,
optional, or allowed issuances of shares of Common Stock upon any actual,
permitted, optional, or allowed exercise of such conversion or purchase rights
if such issuance is at a price lower than the Purchase Price in effect upon any
actual, permitted, optional, or allowed issuance.  Common Stock issued
or issuable by the Company for no consideration will be deemed issuable or to
have been issued for $0.001 per share of Common Stock.  The reduction
of the Purchase Price described in this Section 3.3 is in addition to the
other rights of the Holder described in the Purchase Agreement.

     

    4.           Extraordinary Events
Regarding Common Stock.  In the event that the Company shall
(a) issue additional shares of Common Stock as a dividend or other
distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of Common Stock, then, in each such event,
the Purchase Price shall, simultaneously with the happening of such event, be
adjusted by multiplying the then Purchase Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common Stock outstanding immediately after such event, and the
product so obtained shall thereafter be the Purchase Price then in effect. The
Purchase Price, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described herein
in this Section 4. The
number of shares of Common Stock that the Holder of this Warrant shall
thereafter, on the exercise hereof, be entitled to receive shall be adjusted to
a number determined by multiplying the number of shares of Common Stock that
would otherwise (but for the provisions of this Section 4) be
issuable on such exercise by a fraction of which (a) the numerator is the
Purchase Price that would otherwise (but for the provisions of this Section 4) be in
effect, and (b) the denominator is the Purchase Price in effect on the date of
such exercise.

     

    5.           Certificate as to
Adjustments.  In each case of any adjustment or readjustment in
the shares of Common Stock (or Other Securities) issuable on the exercise of the
Warrants, the Company at its expense will promptly cause its Chief Financial
Officer or other appropriate designee to compute such adjustment or readjustment
in accordance with the terms of the Warrant and prepare a certificate setting
forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based, including a statement of (a) the
consideration received or receivable by the Company for any additional shares of
Common Stock (or Other Securities) issued or sold or deemed to have been issued
or sold, (b) the number of shares of Common Stock (or Other Securities)
outstanding or deemed to be outstanding, and (c) the Purchase Price and the
number of shares of Common Stock to be received upon exercise of this Warrant,
in effect immediately prior to such adjustment or readjustment and as adjusted
or readjusted as provided in this Warrant. The Company will forthwith mail a
copy of each such certificate to the Holder of the Warrant and any Warrant Agent
of the Company (appointed pursuant to Section 10 hereof).

     

    6.           Reservation of Stock, etc.
Issuable on Exercise of Warrant; Financial
Statements.   The Company will at all times reserve and
keep available, solely for issuance and delivery on the exercise of the
Warrants, all shares of Common Stock (or Other Securities) from time to time
issuable on the exercise of the Warrant.  This Warrant entitles the
Holder hereof, upon written request, to receive copies of all financial and
other information distributed or required to be distributed to the holders of
the Company's Common Stock.

     

    7.           Assignment; Exchange of
Warrant.  Subject to compliance with applicable securities
laws, this Warrant, and the rights evidenced hereby, may be transferred by any
registered holder hereof (a “Transferor”). On the surrender
for exchange of this Warrant, with the Transferor's endorsement in the form
of Exhibit Battached
hereto (the “Transferor
Endorsement Form”) and together with an opinion of counsel reasonably
satisfactory to the Company that the transfer of this Warrant will be in
compliance with applicable securities laws, the Company will issue and deliver
to or on the order of the Transferor thereof a new Warrant or Warrants of like
tenor, in the name of the Transferor and/or the transferee(s) specified in such
Transferor Endorsement Form (each a “Transferee”), calling in the
aggregate on the face or faces thereof for the number of shares of Common Stock
called for on the face or faces of the Warrant so surrendered by the
Transferor.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    8.           Replacement of
Warrant.  On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, on delivery of
an indemnity agreement or security reasonably satisfactory in form and amount to
the Company or, in the case of any such mutilation, on surrender and
cancellation of this Warrant, the Company at its expense, twice only, will
execute and deliver, in lieu thereof, a new Warrant of like tenor.

     

    9.           Maximum Exercise.  The
Holder shall not be entitled to exercise this Warrant on an exercise date, in
connection with that number of shares of Common Stock which would be in excess
of the sum of (i) the number of shares of Common Stock beneficially owned
by the Holder and its affiliates on an exercise date, and (ii) the number
of shares of Common Stock issuable upon the exercise of this Warrant with
respect to which the determination of this limitation is being made on an
exercise date, which would result in beneficial ownership by the Holder and its
affiliates of more than 4.99% of the outstanding shares of Common Stock on such
date.  For the purposes of the immediately preceding sentence,
beneficial ownership shall be determined in accordance with
Section 13(d) of the 1934 Act and Rule 13d-3
thereunder.  Subject to the foregoing, the Holder shall not be limited
to aggregate exercises which would result in the issuance of more than
4.99%.  The restriction described in this paragraph may be
waived, in whole or in part, upon sixty-one (61) days prior notice from the
Holder to the Company to increase such percentage to up to 9.99%, but not in
excess of 9.99%.  The Holder may decide whether to exercise this
Warrant to achieve an actual 4.99% or up to 9.99% ownership position as
described above, but not in excess of 9.99%.

     

    10.         Warrant
Agent.  The Company may, by written notice to the Holder of the
Warrant, appoint an agent (a “Warrant Agent”) for the
purpose of issuing Common Stock (or Other Securities) on the exercise of this
Warrant pursuant to Section 1,
exchanging this Warrant pursuant to Section 7, and
replacing this Warrant pursuant to Section 8, or
any of the foregoing, and thereafter any such issuance, exchange or replacement,
as the case may be, shall be made at such office by such Warrant
Agent.

     

    11.         Transfer on the Company's
Books.  Until this Warrant is transferred on the books of the
Company, the Company may treat the registered holder hereof as the absolute
owner hereof for all purposes, notwithstanding any notice to the
contrary.

     

    12.         Governing
Law.  This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of California. All questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed and enforced in accordance with the
internal laws of the State of California, without regard to the principles of
conflicts of law thereof.  Each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of Los Angeles.  Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of Los Angeles, County of Los Angeles for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to
the enforcement of the Agreement), 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 improper or is an  inconvenient venue for such
proceeding.  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 via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any other manner permitted by law.  If
either party shall commence an action or proceeding to enforce any provisions of
the Agreement, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its reasonable attorneys’ fees and other costs
and expenses incurred with the investigation, preparation and prosecution of
such action or proceeding.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    13.         Notices.   All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be:  if to the Company, to:
China Yongxin Pharmaceuticals Inc., 927 Canada Court, City of Industry, CA
91748, Attn: Yongxin Liu, CEO, facsimile: (626) 581-9138, with a copy to:
Richardson & Patel, LLP, 10900 Wilshire Blvd., Suite 500, Los Angeles, CA
90024, Attn: Nimish Patel, Esq., facsimile: (310) 208-1154, (ii) if to the
Holder, to the address and facsimile number listed on the first paragraph of
this Warrant.

     

    14.         Miscellaneous.  In
the event that any provision of this Warrant or any other agreement delivered in
connection herewith is invalid or unenforceable under any applicable statute or
rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform to such
statute or rule of law.  Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of
any other provision of any agreement.   Each party hereby
irrevocably waives personal service of process and consents to process being
served in any suit, action or proceeding in connection with this
Agreement or any other Transaction Document by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service
of process and notice thereof.  Nothing contained herein shall be
deemed to limit in any way any right to serve process in any other manner
permitted by law.

     

    [Signature Page
Follows]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first
written above.

     

    
      
        	 
      	
                CHINA
      YONGXIN PHARMACEUTICALS INC.

              
	 
      	  
      
	 
      	
                By: 

              	  
      
	 
      	 
      	
                Yongxin
      Liu

              
	 
      	 
      	
                Chief
      Executive Officer

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit A

    

    FORM OF
SUBSCRIPTION

    (to be
signed only on exercise of Warrant)

      

    TO:  CHINA
YONGXIN PHARMACEUTICALS INC.

       

    The
undersigned, pursuant to the provisions set forth in the attached Warrant (No.
2009-A-____), hereby irrevocably elects to purchase (check applicable
box):

      

    ___         ________
shares of the Common Stock covered by such Warrant; or

    
      	 
      	 
      
	
              ___

            	
              the
      maximum number of shares of Common Stock covered by such Warrant pursuant
      to the cashless exercise procedure set forth in Section 2 of the
      Warrant.

            

    

    

    The
undersigned herewith makes payment of the full purchase price for such shares at
the price per share provided for in such Warrant, which is
$___________.  Such payment takes the form of (check applicable box or
boxes):

    

    ___         
$__________ in lawful money of the United States; and/or

    
      	 
      	 
      
	
              ___

            	
              the
      cancellation of such portion of the attached Warrant as is exercisable for
      a total of _______ shares of Common Stock (using a Fair Market Value of
      $_______ per share for purposes of this calculation);
    and/or

            

    

    

    
      	
              ___

            	
              the
      cancellation of such number of shares of Common Stock as is necessary, in
      accordance with the formula set forth in Section 2 of the Warrant, to
      exercise this Warrant with respect to the maximum number of shares of
      Common Stock purchasable pursuant to the cashless exercise procedure set
      forth in Section 2.

            

    

    

    The
undersigned requests that the certificates for such shares be issued in the name
of, and delivered pursuant to the DTC instructions below or to
_______________________ whose address is
______________________________________________________________________________________________

    _____________________________________________________________________________________________________________.

    

    The
undersigned represents and warrants that all offers and sales by the undersigned
of the securities issuable upon exercise of the within Warrant shall be made
pursuant to registration of the Common Stock under the Securities Act of 1933,
as amended (the “Securities
Act”), or pursuant to an exemption from registration under the Securities
Act.

    

    
      
        
          
            	
                    DTC
      Instructions: 

                  	
                      

                  
	
                      

                  
	
                      

                  

          

        

      

    

    

    
      
        
          
            	
                    Dated:___________________

                  	
                       

                  
	 
      	
                    (Signature
      must conform to name of holder as specified on the face of the
      Warrant)

                  
	 
      	 
      
	 
      	
                       

                  
	 
      	
                       

                  
	 
      	
                    (Address)

                  

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit B

    

    FORM OF
TRANSFEROR ENDORSEMENT

    (To be
signed only on transfer of Warrant)

      

    For value
received, the undersigned hereby sells, assigns, and transfers unto the
person(s) named below under the heading “Transferees” the right represented by
the within Warrant to purchase the percentage and number of shares of Common
Stock of CHINA YONGXIN PHARMACEUTICALS INC. to which the within Warrant relates
specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
person Attorney to transfer its respective right on the books of CHINA YONGXIN
PHARMACEUTICALS INC. with full power of substitution in the
premises.

    

    
      
        
          
            	
                    Transferees

                  	 
      	
                    Percentage Transferred

                  	 
      	
                    Number Transferred

                  
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

          

        

      

    

    

    
      
        
          
            
              
                
                  
                    	
                            Dated:  __________________,
      _______

                          	 
      	
                               

                          
	 
      	 
      	
                            (Signature
      must conform to name of holder as specified on the face of the
      warrant)

                          
	 
      	 
      	 
      
	
                            Signed
      in the presence of:

                          	 
      	 
      
	 
      	 
      	 
      
	
                               

                          	 
      	
                               

                          
	
                            (Name)

                          	 
      	
                               

                          
	 
      	 
      	
                            (address)

                          
	 
      	 
      	 
      
	
                            ACCEPTED
      AND AGREED:

                          	 
      	
                               

                          
	
                            [TRANSFEREE]

                          	 
      	
                               

                          
	 
      	 
      	
                            (address)

                          
	 
      	 
      	 
      
	
                               

                          	 
      	 
      
	
                            (Name)

                          	
                              

                          	 
      

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    
 

    Schedule

     

    Schedule
prepared in accordance with Instruction 2 to Item 601 of Regulation
S-K

     

    The
Warrants dated April 9, 2010, are substantially identical in all material
respects except as to the warrant holder and the number of warrant shares for
which warrant can be exercised.

    
 

    
      
        
          
            
              
                
                  	
                          Holder

                        	 
      	
                          Number of

                          Warrant

                          Shares

                        	 
      
	
                          Seatech
      Investments Limited

                        	 
      	 
      	
                          2,937,000

                        	 
      
	
                          Fame
      Win Investments Limited

                        	 
      	 
      	
                          2,953,500

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