Document:

Exhibit 4.2

 

DESCRIPTION OF SECURITIES 

 

 REGISTERED PURSUANT TO SECTION 12 OF THE

 

SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

 

As of December 31, 2021, China
Pharma Holdings, Inc. (the “Company,” “we,” “us,” and “our” or “China Pharma”)
had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
which is our common stock, par value $0.001 per share (the “common stock”).

 

The following description of
our common stock and provisions of our Articles of Incorporation and Bylaws are summaries, are not intended to be complete and are qualified
in their entirety by reference such Articles of Incorporation and Bylaws, copies of which have been filed as exhibits to our Annual Report.

 

Common Stock

 

We are authorized to issue
up to 95,000,000 shares of common stock, par value $0.001 per share. Each outstanding share of common stock entitles the holder thereof
to one vote per share on all matters.

 

Our common stock is currently
traded on the NYSE American under the symbol “CPHI”.

 

The holders of shares of our
common stock are entitled to dividends out of funds legally available when and as declared by our Board of Directors. In the event of
our liquidation, dissolution or winding up, holders of our common stock are entitled to receive, ratably, the net assets available to
stockholders after payment of all creditors.

 

Voting Rights

 

Our common stock is entitled
to one vote for each share held of record on all matters submitted to a vote of the stockholders, including the election of directors,
and does not have cumulative voting rights.

 

Economic Rights

 

Except as otherwise expressly
provided in our Articles of Incorporation or required by applicable law, all shares of common stock will have the same rights and privileges
and rank equally, share ratably, and be identical in all respects for all matters, including those described below.

 

Dividends

 

Subject to preferences that
may be applicable to any then-outstanding preferred stock, the holders of common stock are entitled to receive dividends, if any, as may
be declared from time to time by our Board of Directors out of legally available funds.

 

Liquidation Rights

 

In the event of our liquidation,
dissolution or winding-up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution
to stockholders after the payment of all of our debts and other liabilities, subject to the satisfaction of any liquidation preference
granted to the holders of any outstanding shares of preferred stock. 

 

No Preemptive or Similar
Rights

 

The holders of our shares
of common stock are not entitled to preemptive rights, and are not subject to conversion, redemption, subscription or sinking fund provisions.
The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights
of the holders of shares of any series of our preferred stock that we may designate and issue in the future.

 

     

     

    

 

Removal of Directors
by Stockholders

 

Our Bylaws provide that
subject to any limitations in our Articles of Incorporation or Nevada Revised Statutes, any directors or the entire Board of Directors
may be removed, with or without cause, by a vote of two-thirds of the shares then entitled to vote at an election of directors.

 

 

Nevada Laws

 

Sections 78.378 to 78.3793
of the Nevada Revised Statutes (NRS) (Acquisition of Controlling Interest) provide generally that any person or entity that acquires at
least one-fifth of all the voting power in the election of directors of a Nevada corporation, which has 200 or more stockholders of record
and does business in the State of Nevada, may be denied voting rights with respect to the acquired shares, unless a majority of the disinterested
stockholders of the corporation elects to restore such voting rights in whole or in part.

 

Section 78.3785 of the NRS
provides that a person or entity acquires “control shares” whenever it acquires shares that, but for the operation of the
control share acquisition act, would bring its voting power within any of the following three ranges:

 

	 	●	One-fifth or more but less than one-third;
	 	 	 
	 	●	One-third or more but less than a majority; or
	 	 	 
	 	●	A majority or more.

 

A “control share acquisition”
is generally defined as the direct or indirect acquisition of either ownership or voting power associated with issued and outstanding
control shares. The stockholders or board of directors of a corporation may elect to exempt the stock of the corporation from the provisions
of the control share acquisition act through adoption of a provision to that effect in the articles of incorporation or bylaws of the
corporation.

 

Transfer Agent And Registrar

 

The transfer agent and registrar
for our common stock is Equiniti Trust Company (f/k/a Corporate Stock Transfer), 3200 E Cherry Creek South Dr Ste 430, Denver, CO 80209.

 

Common Stock underlying the Company’s
Convertible Promissory Note

 

On November 17, 2021, the
Company entered into a Securities Purchase Agreement (the “Agreement”) pursuant to which the Company issued an unsecured convertible
promissory note (the “Note”) to an institutional accredited investor Streeterville Capital, LLC (“Investor”).
The Note shall mature fifteen (15) months after the purchase price of the Note is delivered from the Investor to the Company (the “Purchase
Price Date”). The Note has the original principal amount of $5,250,000 and Investor gave consideration of $5,000,000, reflecting
original issue discount of $250,000. The transaction contemplated under the Agreement was closed on November 19, 2021.

 

Interest
accrues on the outstanding balance of the Note at 5% per annum. Upon the occurrence of an Event of Default as defined in the Note, interest
accrues at the lesser of 22% per annum or the maximum rate permitted by applicable law. In addition, upon any Event of Default, the Investor
may accelerate the outstanding balance payable under the Note, which will increase automatically upon such acceleration by 15% or 5%,
depending on the nature of the Event of Default.

 

Pursuant
to the terms of the Agreement and the Note, the Company must obtain Investor’s consent for certain fundamental transactions such
as consolidation, merger with or into another entity (excerpt for a reincorporation merger), disposition of substantial assets, change
of control, reorganization or recapitalization. Any occurrence of a fundamental transaction without Investor’s prior written consent
will be deemed an Event of Default.

  

Investor
may redeem all or any part the outstanding balance of the Note, subject to $500,000 per calendar month, at any time after one hundred
twenty-one (121) days from the Purchase Price Date upon three trading days’ notice, in cash or converting into shares of the common
stock at a price equal to 85% multiplied by the lowest daily VWAP during the ten (10) trading days immediately preceding the applicable
redemption conversion, subject to certain adjustments and ownership limitations specified in the Note. The Note provides for liquidated
damages upon failure to comply with any of the terms or provisions of the Note. The Company may prepay the outstanding balance of the
Note with the Investor’s consent.

 

Pursuant
to the terms of the Agreement, the Company reserved 30,000,000 shares of common stock from its authorized and unissued Common Stock to
provide for all issuances of common stock under the Note (the “Share Reserve”). The Company further agrees to add additional
shares of Common Stock to the Share Reserve in increments of 1,000,000 shares under certain circumstances.Exhibit 10.11

 

Loans Extension Confirmation Letter

 

Reference is made to the loans from Ms. Heung
Mei Tsui to China Pharma Holdings, Inc. (the “Company”), the principal and accumulated interest totaled USD1,354,567 and USD139,032.31
respectively as of December 31, 2021. Due to the fact the Company temporarily did not have enough balance in its oversea account to repay
the loans, both Ms. Tsui and the Company agreed to extend the loans to December 31, 2022, by which date the Company shall repay the principal
and accumulated interest. 

 

	 	Lender:	/s/ Heung Mei Tsui
	 	 	 
	 	Borrower: 	China Pharma Holdings, Inc.
	 	 	 
	 	By:	/s/ Zhilin Li, President & CEO
	 	 	 
	 	Date:	December 31, 2021Exhibit 10.1

SECTION 203 AGREEMENT
This Section 203 Agreement (the “Agreement”) is made and entered into as of March 28, 2022, by and between Baker Bros. Advisors LP, a Delaware limited partnership (together with its affiliates and associates “Investor”), and Verastem, Inc., a Delaware corporation (the “Company”).
WHEREAS, Investor may desire to acquire ownership of additional shares of common stock, par value $0.0001 per share, of the Company (“Common Stock”) without being subject to the restrictions under Section 203 of the General Corporation Law of the State of Delaware, as amended (“Section 203”), applicable to a “business combination” with an “interested stockholder” (each such term, as used in this Agreement, shall have the meaning given to it in Section 203, except as described in Section 4 hereof); and
WHEREAS, as of the date hereof, the Company and Investor have no current discussions or negotiations with each other regarding a business combination or other extraordinary transaction involving the Company;
NOW THEREFORE, in consideration of the premises and the covenants of the parties set forth in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, the undersigned hereby agree as follows:
1.Board Approval.  The Company hereby represents and warrants to Investor that the Board of Directors of the Company has duly approved (the “Board Approval”) this Agreement and the acquisition by Investor, whether in a single transaction or multiple transactions from time to time, of additional shares of Common Stock to the extent such acquisitions would result in Investor being the owner of 15% or more, but less than 20%, of the voting power of the shares of voting stock of the Company issued and outstanding from time to time, subject to the limitations provided for in Section 4 hereof and subject to the accuracy of the representations and warranties set forth in Section 2 hereof.
2.Investor Representations and Warranties.  Investor hereby represents and warrants that, as of the date of this Agreement and assuming the accuracy of the representations and warranties set forth in Section 3 hereof, Investor is, in the aggregate, owner of less than 15% of the shares of Common Stock issued and outstanding as of the date of this Agreement.
3.Company Representations and Warranties.  The Company hereby represents and warrants that, as of the date of this Agreement, there are 186,329,612 shares of Common Stock issued and outstanding, which is the only class of “voting stock” (as defined in Section 203) of the Company.
4.Additional Acquisitions.  Investor agrees that if Investor becomes the owner of shares of voting stock of the Company such that Investor would, in the aggregate, own 20% or more of the voting power of the issued and outstanding shares of voting stock of the Company under circumstances in which they would be an “interested stockholder” as defined in Section 203 (but, for this purpose, replacing “15%” in such definition with “20%”) (any event causing Investor to own 20% or more of the voting power of the then-issued and outstanding shares of 

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voting stock of the Company, an “Additional Acquisition”), then (i) notwithstanding the Board Approval referred to in Section 1 of this Agreement, the restrictions under Section 203 applicable to a “business combination” with an “interested stockholder” shall apply as a matter of contract pursuant to this Agreement (except as modified herein) to Investor as if such Board Approval had not been granted and as if the Additional Acquisition had caused Investor and its affiliates and associates to become an interested stockholder for purposes of Section 203, except that wherever “15%” is used in Section 203 it shall mean, for all purposes of this Agreement, “20%”; and (ii) Investor will not engage in any business combination with the Company for a period of three years following the time that Investor became an owner of 20% or more of the voting power of the then-issued and outstanding shares of voting stock of the Company, unless prior to such time the Board of Directors of the Company approved, either the business combination or the Additional Acquisition.
5.Miscellaneous.
a.Counterparts. This Agreement may be signed in any number of counterparts, including electronic scan copies thereof delivered by electronic mail, each of which shall be deemed an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  
b.Entire Agreement; Amendment. This Agreement constitutes the entire agreement between and among the parties hereto with regard to the subject matter hereof, and supersedes all prior agreements and understandings with regard to such subject matter.  This Agreement shall not be changed or modified, in whole or in part, except by supplemental agreement or amendment signed by the parties.  
c.Specific Performance. The parties hereby expressly recognize and acknowledge that immediate, extensive and irreparable damage would result, no adequate remedy at law would exist and damages would be difficult to determine in the event that any provision of this Agreement is not performed in accordance with its specific terms or otherwise breached.  It is hereby agreed that the parties shall be entitled to specific performance of the terms hereof and immediate injunctive relief and other equitable relief, without the necessity of proving the inadequacy of money damages as a remedy, and the parties further hereby agree to waive any requirement for the securing or posting of a bond in connection with the obtaining of such injunctive or other equitable relief.  Such remedies, and any and all other remedies provided for in this Agreement, shall, however, be cumulative in nature and not exclusive and shall be in addition to any other remedies whatsoever which any party may otherwise have. Each of the parties hereby acknowledges that the existence of any other remedy contemplated by this Agreement does not diminish the availability of specific performance of the obligations hereunder or any other injunctive relief.  Each of the parties further acknowledges and agrees that injunctive relief or specific performance will not cause an undue hardship to such party.
d.Third-Party Beneficiaries.  Without limiting the parties’ rights to amend this Agreement, this Agreement is intended to benefit, and shall be enforceable by, each holder of outstanding shares of capital stock of the Company as a third-party beneficiary of this Agreement, such that such stockholders shall be entitled to enforce the Agreement if any of the provisions of this Agreement were not performed in accordance with their specific terms, as 

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amended from time to time, or were otherwise breached by the parties hereto, including, without limitation, in the event any business combination were consummated in violation of Section 4 hereof.
e.Definitions.  As used in this Agreement, the terms “affiliate,” “associate,” “owner,” including the terms “own” and “owned,” “stock” and “voting stock” have the meanings given to them in Section 203.
f.Governing Law; Jurisdiction; Waiver of Jury Trial.  The rights and obligations of the parties shall be governed by, and this Agreement shall be interpreted, construed and enforced in accordance with, the laws of the State of Delaware, excluding its conflict of laws rules to the extent such rules would apply the law of another jurisdiction.  Any judicial proceeding brought against any of the parties to this Agreement or any dispute arising out of this Agreement or related hereto may be brought in the courts of the State of Delaware, or in the United States District Court for the District of Delaware, and, by execution and delivery of this Agreement, each of the parties to this Agreement accepts the exclusive jurisdiction of such courts and irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement.  Each of the parties hereto hereby irrevocably waives its right to a jury trial in connection with any action, proceeding or claim arising out of or relating to this Agreement.
[Signatures Follow on a Separate Page]

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IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its respective officer thereunto duly authorized as of the date first written above.
BAKER BROS. ADVISORS LP
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By: /s/ Scott Lessing
Name: Scott Lessing
Title: President
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VERASTEM, INC.
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By: /s/ Robert E. Gagnon
Name: Robert E. Gagnon
Title: Chief Business and Financial Officer

[Signature Page to Section 203 Agreement]
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