Document:

EXHIBIT
4.1

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES

REGISTERED
PURSUANT TO SECTION 12 OF THE

SECURITIES
EXCHANGE ACT OF 1934

 

As
of December 31, 2020, Aditx Therapeutics, Inc. (“the Company”) had one class of security registered under Section 12
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our common stock, par value $0.001 per share
(“Common Stock”).

 

Description
of Common Stock

 

The
following description of our Common Stock is a summary and does not purport to be complete. It is subject to and qualified
in its entirety by reference to our Amended and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”)
and our Amended and Restated Bylaws (the “Bylaws”), each of which are incorporated by reference as an exhibit to the
Annual Report on Form 10-K of which this Exhibit 4.1 is a part. We encourage you to read our Certificate of Incorporation,
Bylaws, and the applicable provisions of the Delaware General Corporation Law for additional information.

 

Authorized
Capital Shares

 

Our
authorized capital shares consist of 27,000,000 shares of common stock, $0.001 par value per share, and 3,000,000 shares of preferred
stock, $0.001 par value per share (“Preferred Stock”). As of December 31, 2020, there were 13,074,495 shares
of common stock issued and 12,973,692 shares of common stock outstanding. There were no shares of Preferred Stock
issued or outstanding as of December 31, 2020.

 

Voting
Rights

 

Holders
of common stock are entitled to one vote per share on all matters voted on by the stockholders, including the election of directors.
Our Certificate of Incorporation and Bylaws do not provide for cumulative voting in the election of directors.

 

Dividend
Rights

 

Holders
of the Company’s common stock are entitled to receive dividends, if any, as may be declared from time to time by the board
of directors in its discretion out of funds legally available for the payment of dividends.

 

Liquidation
Rights

 

In
the event of our liquidation, the holders of our common stock will be entitled to share ratably in any distribution of our assets
after payment of all debts and other liabilities and the preferences payable to holders of shares of Preferred Stock then outstanding,
if any.

 

Applicable
Anti-Takeover Law

 

Set
forth below is a summary of the provisions of the Certificate of Incorporation and the Bylaws that could have the effect of delaying
or preventing a change in control of the Company. The following description is only a summary and it is qualified by refence to
the Certificate of Incorporation, the Bylaws and relevant provisions of the Delaware General Corporation Law.

 

     

     

    

 

Blank
Check Preferred Stock

 

The
Certificate of Incorporation authorizes 3,000,000 undesignated shares of Preferred Stock and permits our board of directors to
issue Preferred Stock with rights or preferences that could impede the success of any attempt to change control of the Company.
For example, our board of directors, without stockholder approval, may create or issue Preferred Stock with conversion rights
that could adversely affect the voting power of the holders of our common stock as well as rights to such Preferred Stock, in
connection with implementing a stockholder rights plan. This provision may be deemed to have a potential anti-takeover effect,
because the issuance of such Preferred Stock may delay or prevent a change of control of the Company. Furthermore, shares of Preferred
Stock, if any are issued, may have other rights, including economic rights, senior to common stock, and as a result, the issuance
thereof could depress the market price of our common stock.

 

No
Cumulative Voting

 

The
Certificate of Incorporation and the Bylaws do not provide holders of our common stock cumulative voting rights in the election
of directors. The absence of cumulative voting could have the effect of preventing stockholders holding a minority of our shares
of common stock from obtaining representation on our board of directors. The absence of cumulative voting might also, under certain
circumstances, render more difficult or discourage a merger, tender offer or proxy contest favored by a majority of our stockholders,
the assumption of control by a holder of a large block of our stock or the removal of incumbent management.

 

Advance
Notice Requirements for Stockholder Proposals and Director Nominees

 

The
Bylaws require stockholders seeking to make nominations of candidates for election as directors or to bring other business before
a meeting of our stockholders to provide timely notice of their intent in writing. To be timely, a stockholder’s notice
must be delivered to the Secretary at our principal executive offices not less than 90 days nor more than 120 days prior to the
first anniversary of the immediately preceding annual meeting of the stockholders; provided, however, that in the event that the
date of the annual meeting is more than 30 days before or after such anniversary date, notice by the stockholder to be timely
must be so received not later than the close of business on the tenth day following the earlier of the date on which we first
give notice or publicly announce the date of the meeting. A stockholder’s notice must include certain information about
the stockholder and the nominee or proposal as specified in the Bylaws. These advance notice provisions may restrict the ability
of the stockholders to make nominations for directors at or bring business before a meeting of the Company’s stockholders.

 

Listing

 

Our
common stock is traded on Nasdaq Capital Market under the trading symbol “ADTX”.

 

Transfer
Agent

 

The
Company’s transfer agent is VStock Transfer, LLC.Document

Exhibit 10.1

APOLLO ENDOSURGERY 2021 BONUS PLAN
PURPOSE OF THE PLAN
The Apollo Endosurgery Bonus Plan (the “Plan”) is designed to reward eligible employees for their contributions toward the successful accomplishment of specific financial and strategic business objectives, and individual performance.
PERFORMANCE
Bonus amounts are determined based on both corporate performance and individual performance in relation to pre-established objectives.
Corporate Performance
Corporate performance will be measured based on financial objectives approved by the board of directors. Exceptions to this and modifications to this Bonus Plan can be made at any time at the board’s sole discretion.
Individual Performance
Individual performance will be measured based on the achievement of written and approved goals prepared for each participant by their manager. Objectives and goals are established at the beginning of each Plan Year and initially documented no later than the end of February of each year, but may be modified throughout the Plan Year as necessary or appropriate, with senior management approval. Objectives and goals will be expressed as specific, measurable performance or achievement in relation to key operating priorities for the participant’s department. Goal achievement is assessed by each individual’s manager and the manager assessment may be subject to executive override.
BONUS POOL CALCULATION AND ALLOCATIONS
The Plan will have two separately funded pools – a Corporate pool (the “Corporate Component”) and Individual pool (the “Individual Component”). The two together form the individual’s final bonus amount.
The bonus pools will have the following levels of achievement defined below:
•Individual Threshold – is solely determined at the discretion of the Board upon their end of year review of the overall Company’s financial condition and operating performance.
•Corporate Component Threshold – minimum Company financial performance required before any corporate component pool will be funded.
•Target – financial performance required before the corporate component is eligible to be funded at 100%.
A multiplier is applied for performance between the Corporate Threshold and Target to determine the percentage of the bonus pool that is funded, as well as performance that is above Target. The Corporate Bonus Pool can be up to 200% of target based on the achievement of above plan performance objectives.
Corporate Component for 2021
Three performance metrics for the corporate component for 2021 are as follows:
•50% weighting.  Target achievement of 2021 Product revenues
•30% weighting.  Target achievement of 2021 Gross Margin
•20% weighting.  Target achievement of 2021 EBITDA*
*EBITDA:  Earnings before interest, taxes, and depreciation, and excluding stock-based compensation.

Exhibit 10.1

BONUS POOL ADJUSTMENTS AND DIFFERENTIATION BY DEPARTMENT
The bonus pool may be allocated to individual departments by the Company’s Chief Executive Officer based on such matters as he may determine to be appropriate, including but not limited to the department’s contribution to the corporate performance for the year. For example, a department that exceeds its goals may receive a greater share of the total bonus pool than a department that under performs.
At the end of the Plan Year, the Company’s Chief Executive Officer may recommend adjustments to the bonus pool to the board of directors after consideration of key operating results. When calculating corporate performance for purposes of this Plan, the board of directors has the discretion to consider such matters as it determines to be appropriate, including any or all of the following:
•Extraordinary financial or corporate transactions that may occur during the plan year
•Effects of accounting changes
•Expenses for productivity initiatives
•Other non-operating items
•Integration activities or expense
•Performance in relation to pre-established objectives
•Any other items of significant income or expense which are determined to be appropriate adjustments
Individual Bonus Calculation
Target bonus awards are expressed as a percentage of the employee’s eligible earnings for each calendar year. Eligible earnings are defined as regular earnings paid during the year, holiday, vacation, and personal leave time. The target percentages will vary by position level. A participant’s actual bonus award may vary above or below the targeted level based on corporate performance, the overall performance of his or her business unit relative to the overall performance of the Company, and the participant’s performance in relation to his or her pre-determined individual objectives.

									
	Position Level
	Corporate Component Percentage
	Individual Component Percentage

	CEO	100%	Board Discretion
	C-Level and VPs	80%	20%
	Directors, Sr. Director	50%	50%
	Managers and Professional Level (Exempt)	25%	75%
	Hourly	0%	100%

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