EXHIBIT
4.1


 


CERTIFICATE
OF DESIGNATION


 


FOR


 


SERIES
B REDEEMABLE CONVERTIBLE PREFERRED STOCK


 


Par
value $.001


 


OF


 


KIWA
BIO-TECH PRODUCTS GROUP CORPORATION


 


Yvonne
Wang and Lucy Li certify that they are the President and Secretary, respectively, of Kiwa Bio-Tech Products Group Corporation,
a Nevada corporation (the “Company”); that, pursuant to the Company’s Articles of Incorporation and applicable
Nevada law, on December 28, 2017 the Board of Directors of the Company adopted the following resolutions effective immediately;
and that none of the Series B Redeemable Convertible Preferred Stock referred to in this Certificate of Designation has been issued.


 


Section
A. Series B Redeemable Convertible Preferred Stock Designation; Amount; Rank.


 


The
shares of such series shall be designated as “Series B Preferred Stock” (the “Series B Preferred Stock”),
and the number of shares constituting such series shall be 811,148. The original issue price (“Series B Original Issue
Price”) of each share of Series B Preferred Stock shall be $1.30.


 


The
Series B Preferred Stock shall, with respect to dividend rights, rights upon liquidation, winding up or dissolution, and redemption
rights, rank (1) junior to any other class or series of preferred stock hereafter duly established by the Board of Directors of
the Corporation, the terms of which shall specifically provide that such class or series shall rank prior to the Series B Preferred
Stock as to the payment of dividends or upon redemption and distribution of assets upon liquidation, winding up or dissolution
(the “Senior Preferred Stock”), (2) pari passu with any other class or series of preferred stock hereafter
duly established by the Board of Directors of the Corporation, the terms of which shall specifically provide that such class or
series shall rank pari passu with the Series B Preferred Stock as to the payment of dividends or upon redemption and distribution
of assets upon liquidation, winding up or dissolution (the “Parity Preferred Stock”) which shall include the Series
A Redeemable Preferred Stock and (3) prior to any other class or series of preferred stock or other class or series of capital
stock of or other equity interests in the Corporation, including, without limitation, all classes of the Common Stock of the Corporation,
whether now existing or hereafter created (all of such classes or series of capital stock and other equity interests of the Corporation,
including, without limitation, the Common. Stock, are collectively referred to herein as the “Junior Securities”).


 




    	 



    	 



    

 


Section
B. Dividends.


 


1.
Right to Receive Dividends. The holders of Series B Preferred Stock shall be entitled to receive dividends when, as and
if declared by the Board of Directors of the Corporation. The right to dividends on shares of Series B Preferred Stock shall be
non-cumulative and no right shall accrue to holders of Series B Preferred Stock by reason of the fact that dividends on said shares
are not declared in any prior period.


 


Section
C. Liquidation Preference.


 


1.
Liquidation Preference. In the event of any liquidation, dissolution, or winding up of the Corporation, either voluntary
or involuntary, distributions to the stockholders of the Corporation shall be made in. the following manner:


 


(a)
Series B Preferred Stock Preference. With respect to such liquidation, dissolution or winding up, the holders of Series
B Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds
of the Corporation to the holders of Junior Securities but after distribution of such assets among, or payment thereof to holders
of any Senior Preferred Stock, an amount equal to the Series B Original Issue Price for each share of Series B Preferred Stock
plus an amount equal to all declared but unpaid dividends on Series B Preferred Stock (the “Series B Liquidation Preference”).


 


(b)
Distributions. After the payment of the full Series B Liquidation Preference as set forth in Section C(1), the remaining
assets of the Corporation legally available for distribution, if any, shall be distributed ratably to the holders of the Common
Stock in an amount equal to the Series B Liquidation Preference; after such distribution to the holders of the Common Stock, the
remaining assets of the Corporation legally available for distribution, if any, shall be distributed ratably (subject to Section
C(1)(c) among the Series B Preferred Stock and the Common Stock.


 


(c)
Proportionate Payments. If the assets and funds legally available for distribution among the holders of Series B Preferred
Stock shall be insufficient to permit the payment to the holders of the full Series B Liquidation Preference, then the assets
and funds shall be distributed ratably among holders of Series B Preferred Stock in proportion to the number of shares of Series
B Preferred Stock owned by each holder. 


 


Section
D. Voting Rights.


 


Voting
Rights. The holders of the Series B Preferred Stock shall be entitled to vote, in the same manner and with the same effect
as the holders of Common Stock, voting together with the holders of Common Stock as a single class. For this purpose, the holders
of Series B Preferred Stock shall be given notice of any meeting of stockholders as to which the holders of Common Stock are given
notice in accordance with the bylaws of the Corporation. As to any matter on which the holders of Series B Preferred Stock shall
be entitled to vote, the holders of the outstanding Series B Preferred Stock shall have a number of votes calculated on an as-converted
to Common Stock basis.


 




    	 



    	 



    

 


Section
E. Redemption.


 


The
Company shall have the right to redeem the Series B Preferred Stock, plus any accrued and unpaid dividends, in whole but not in
part, at any time or from time to time (the “Redemption”), at a cash redemption price equal to the aggregate Series
B Original Issue Price the Series B Preferred Stock being redeemed (the “Redemption Amount”) plus an amount equal
to the amount of the accrued and unpaid dividend thereon. In the event the Company elects to redeem the Series B Preferred Stock,
the Company shall deliver a written notice to the Holder of the Series B Preferred Stock at the Holder’s last known address
as set forth in the Series B Preferred Stock Register, advising the Holder of the Redemption (the “Redemption Notice”).
Upon delivery by the Company of the Redemption Notice, the Company shall have ten (10) days to redeem all, but not less than all,
of the Series B Preferred Stock, plus the amount of the accrued and unpaid dividend thereon.


 


Section
F. Conversion.


 


1.
Each share of Series B Preferred Stock may be converted by any holder thereof, without any further consideration, at any time,
into one (1) share of Common Stock (the “Conversion Rate”).


 


2.
In the event of any conversion resulting in fractional shares, in lieu of issuance of fractional shares or securities representing
fractional shares of Common Stock, the Company shall pay the holder in cash the fair value of fractions of a share as of the date
of conversion as determined by the Company’s board of directors. For these purposes, the “date of conversion”
shall mean the date the Corporation receives a written notice of a conversion by the holder.


 


3.
The Company covenants that it will at all times reserve and keep available, free from preemptive rights, out of the aggregate
of its authorized but unissued shares of Common Stock or its issued shares of Common Stock held by its treasury, or both, for
the purpose of effective conversions of the Series B Preferred Stock, the full number of shares of Common Stock deliverable upon
the conversion of all outstanding shares of the Series B Preferred Stock not theretofore converted. For purposes of this section,
the number of shares of Common Stock that shall be deliverable upon the conversion of all outstanding shares of the Series B Preferred
Stock shall be computed as if at the time of computation all the outstanding shares were held by a single holder.


 


4.
Adjustments of Conversion Rate.


 


	 	 	(a)	Adjustments
    for Stock Splits and Combinations. If the Company shall, at any time or from time to time after the date of issuance of
    the Series B Preferred Stock (“Issuance Date”), effect a split of the outstanding Common Stock, the Conversion
    Rate shall be proportionately adjusted. If the Company shall, at any time or from time to time after the Issuance Date, combine
    the outstanding shares of Common Stock, the Conversion Rate shall be proportionately adjusted. Any adjustments under this
    section shall be effective at the close of business on the date the stock split or combination becomes effective.


 




    	 



    	 



    

 


	 	 	(b)	Adjustments
    for Certain Dividends and Distributions. If the Company shall, at any time or from time to time after the Issuance Date,
    make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other
    distribution payable in shares of Common Stock, then, and in each event, the Conversion Rate shall be adjusted as of the time
    of such issuance or, in the event such record date shall have been fixed, as of the close of business on such record date,
    by multiplying the Conversion Price then in effect by a fraction:


 


	 	 	 	(i)	the
    numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
    of such issuance or the close of business on such record date; and
	 	 	 	 	 
	 	 	 	(ii)	the
    denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
    of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment
    of such dividend or Distribution.


 


	 	 	(c)	Adjustment
    for Other Dividends and Distributions. If the Company shall, at any time or from time to time after the Issuance Date,
    make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other
    Distribution payable in securities of the Company other than shares of Common Stock, then, and in each event, an appropriate
    revision to the applicable Conversion Rate shall be made and provision shall be made (by adjustments of the Conversion Rate
    or otherwise) so that the Series B Preferred Stockholders shall receive upon conversions thereof, in addition to the number
    of shares of Common Stock receivable thereon, the number of securities of the Company which they would have received had their
    shares of Series B Preferred Stock been converted into Common Stock on the date of such event and had such holder thereafter,
    during the period from the date of such event to and including the Conversion Date, retained such securities (together with
    any distributions payable thereon during such period), giving application to all adjustments called for during such period
    under this section with respect to the rights of the holders of the Series B Preferred Stock; provided, however, that if such
    record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date
    fixed therefor, the Conversion Rate shall be adjusted pursuant to this paragraph as of the time of actual payment of such
    dividends or Distributions; and provided further, however, that no such adjustment shall be made if the holders of the Series
    B Preferred Stock simultaneously receive a dividend or other distribution of shares of Common Stock in a number equal to the
    number of shares of Common Stock as they would have received if all outstanding shares of Series B Preferred Stock had been
    converted into Common Stock on the date of such event.


 




    	 



    	 



    

 


	 	 	(d)	Adjustments
    for Reclassification, Exchange or Substitution. If the Common Stock issuable upon conversion of the Series B Preferred
    Stock at any time or from time to time after the Issuance Date shall be changed to the same or different number of shares
    of any class or classes of stock, whether by reclassification, exchange, substitution or otherwise (other than by way of a
    stock split or combination of shares or stock dividends provided for in Sections 4(E)(i), (ii) and (iii), or a reorganization,
    merger, consolidation, or sale of assets provided for in Section 4(E)(v), then, and in each event, an appropriate revision
    to the Conversion Rate shall be made and provisions shall be made (by adjustments of the Conversion Rate or otherwise) so
    that the holders of Series B Preferred Stock shall have the right thereafter to convert their shares of Series B Preferred
    Stock into the kind and amount of shares of stock and other securities receivable upon reclassification, exchange, substitution
    or other change, by holders of the number of shares of Common Stock into which such shares of Series B Preferred Stock might
    have been converted immediately prior to such reclassification, exchange, substitution or other change, all subject to further
    adjustment as provided herein.
	 	 	 	 
	 	 	(e)	Adjustments
    for Reorganization, Merger, Consolidation or Sales of Assets. If at any time or from time to time after the Issuance Date
    there shall be a capital reorganization of the Company (other than by way of a stock split or combination of shares or stock
    dividends or Distributions provided for in Section 4(E)(i), (ii) and (iii), or a reclassification, exchange or substitution
    of shares provided for in Section 4(E)(iv)), or a merger or consolidation of the Company with or into another corporation
    where the holders of the Company’s outstanding voting securities prior to such merger or consolidation do not own over
    50% of the outstanding voting securities of the merged or consolidated entity, immediately after such merger or consolidation,
    or the sale of all or substantially all of the Company’s properties or assets to any other person (an “Organic
    Change”), then as a part of such Organic Change an appropriate revision to the Conversion Rate shall be made if necessary
    and provision shall be made if necessary (by adjustments of the Conversion Rate or otherwise) so that the holders of the shares
    of Series B Preferred Stock shall have the right thereafter to convert their shares of Series B Preferred Stock into the kind
    and amount of shares of stock and other securities or property of the Company or any successor corporation resulting from
    Organic Change. In any such case, appropriate adjustment shall be made in the application of the provisions of this Section
    4(E)(v) with respect to the rights of the holders of shares of Series B Preferred Stock after the Organic Change to the end
    that the provisions of this Section 4(E)(v) (including any adjustment in the Conversion Rate then in effect and the number
    of shares of stock or other securities deliverable upon conversion of the Series B Preferred Stock) shall be applied after
    that event in as nearly an equivalent manner as may be practicable.


 






    	 	 	 



     


    

 


	 	 	(f)	Consideration
    for Stock. In case any shares of Common Stock or Convertible Securities other than the Series B Preferred Stock, or any
    rights or warrants or options to purchase any such Common Stock or Convertible Securities, shall be issued or sold:


 


	 	 	 	(i)	in
    connection with any merger or consolidation in which the Company is the surviving corporation (other than any consolidation
    or merger in which the previously outstanding shares of Common Stock of the Company shall be changed to or exchanged for the
    stock or other securities of another corporation), the amount of consideration therefore shall be deemed to be the fair value,
    as determined reasonably and in good faith by the Board of Directors of the Company, of such portion of the assets and business
    of the non-surviving corporation as such Board may determine to be attributable to such shares of Common Stock, Convertible
    Securities, rights or warrants or options, as the case may be; or
	 	 	 	 	 
	 	 	 	(ii)	in
    the event of any consolidation or merger of the Company in which the Company is not the surviving corporation or in which
    the previously outstanding shares of Common Stock of the Company shall be changed into or exchanged for the stock or other
    securities of another corporation, or in the event of any sale of all or substantially all of the assets of the Company for
    stock or other securities of any corporation, the Company shall be deemed to have issued a number of shares of its Common
    Stock for stock or securities or other property of the other corporation computed on the basis of the actual exchange ratio
    on which the transaction was predicated, and for a consideration equal to the fair market value on the date of such transaction
    of all such stock or securities or other property of the other corporation. If any such calculation results in adjustment
    of the applicable Conversion Rate, or the number of shares of Common Stock issuable upon conversion of the Series B Preferred
    Stock, the determination of the applicable Conversion Rate or the number of shares of Common Stock issuable upon conversion
    of the Series B Preferred Stock immediately prior to such merger, consolidation or sale, shall be made after giving effect
    to such adjustment of the number of shares of Common Stock issuable upon conversion of the Series B Preferred Stock. In the
    event any consideration received by the Company for any securities consists of property other than cash, the fair market value
    thereof at the time of issuance or as otherwise applicable shall be as determined in good faith by the Board of Directors
    of the Company. In the event Common Stock is issued with other shares or securities or other assets of the Company for consideration
    which covers both, the consideration computed as provided in this section shall be allocated among such securities and assets
    as determined in good faith by the Board of Directors of the Company.


 




    	 



    	 



    

 


	 	 	 	(iii)	No
    Impairment. The Company shall not, by amendment of its Articles of Incorporation or through any reorganization, transfer
    of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to
    avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at
    all times in good faith assist in the carrying out of all the provisions of this section and in the taking of all such action
    as may be necessary or appropriate in order to protect the conversion rights of the holders of Series B Preferred Stock against
    impairment. In the event any holder of Series B Preferred Stock shall elect to convert any shares of Series B Preferred Stock
    as provided herein, the Company cannot refuse conversion based on any claim that such holder or anyone associated or affiliated
    with such holder has been engaged in any violation of law, unless (i) the Company receives an order from the Securities and
    Exchange Commission prohibiting such conversion or (ii) an injunction from a court, on notice, restraining and/or enjoining
    conversion of all or of said shares of Series B Preferred Stock shall have been issued.
	 	 	 	 	 
	 	 	 	(iv)	Certificates
    as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Rate or number of shares of Common
    Stock issuable upon conversion of shares of Series B Preferred Stock pursuant to this section, the Company at its expense
    shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of shares
    of Series B Preferred Stock a certificate setting forth such adjustment and readjustment, showing in detail the facts upon
    which such adjustment or readjustment is based. The Company shall, upon written request of the holder of such affected Series
    B Preferred Stock, at any time, furnish or cause to be furnished to such holder a like certificate setting forth such adjustments
    and readjustments, the Conversion Rate in effect at the time, and the number of shares of Common Stock and the amount, if
    any, of other securities or property which at the time would be received upon the conversion of the shares of Series B Preferred
    Stock. Notwithstanding the foregoing, the Company shall not be obligated to deliver a certificate unless such certificate
    would reflect an increase or decrease of at least one percent of such adjusted amount.


 


Section
G. Additional Issuance of Preferred Shares.


 




    	 



    	 



    

 


The
Company may issue additional shares of Preferred Stock in the future. If the Company desires to issue additional shares of Preferred
Stock, the Company shall file such amendments to its Article of Incorporation as may be necessary to effect such designation.


 


IN
WITNESS WHEREOF, the Company has caused this Certificate of Designation to be duly executed by its President and attested to by
its Secretary as of the 28th day of December, 2017, who, by signing their names hereto, acknowledge that this Certificate of Designation
is the act of the Company and state to the best of their knowledge, information and belief, under penalties of perjury, that the
above matters and facts are true in all material respects.





 


	 	KIWA
    BIO-TECH PRODUCTS GROUP CORPORATION
	 	 
	 	By:	/s/
    Yvonne Wang
	 	 	 President


 


	 	By:	/s/
    Lucy Li
	 	 	 Secretary