Document:

Exhibit 4.1

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO

SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

The following description of the common stock of Northwest Biotherapeutics,
Inc. (the “Corporation,” “us,” “our” or ”we”) does not purport to be complete and
is subject to, and qualified in its entirety by, our certificate of incorporation, as amended (“certificate”), and
our amended and restated bylaws (“bylaws”), each of which is incorporated by reference as an exhibit to the Annual
Report on Form 10-K of which this exhibit is a part.

 

General

 

Our authorized capital stock consists
of 1,200,000,000 shares of common stock, par value $0.001 per share, and 100,000,000 shares of preferred stock, par value $0.001
per share. We have one class of securities registered under Section 12 of the Securities Exchange Act of 1934, our common
stock, which is listed on the OTCQB tier of the OTC Markets under the symbol “NWBO.” There are no shares of preferred
stock outstanding.

 

Common Stock

 

Voting rights. The holders of our common stock are entitled
to one vote per share on all matters submitted to a vote of stockholders. A plurality of the votes cast is required for stockholders
to elect directors. All other matters put to a stockholder vote generally require the approval of a majority of the votes cast
by the shares represented at a meeting of the stockholders, except as otherwise provided by our certificate or bylaws or required
by law. Stockholders do not have cumulative voting rights.

 

Dividends. Subject to the prior rights of any series
of preferred stock which may from time to time be outstanding, the holders of our common stock are entitled to receive such dividends,
if any, as may be declared from time to time by our board of directors out of legally available funds. As of the date of this filing,
we have not declared or paid any cash dividends on our shares of common stock.

 

Liquidation. In the event we are liquidated, dissolved
or our affairs are wound up, after we pay or make adequate provision for all of our known debts and liabilities, each holder of
common stock will receive distributions pro rata out of assets that we can legally use to pay distributions, subject to any rights
that are granted to the holders of any class or series of preferred stock.

 

Preemptive, subscription and conversion rights. Our common
stock is not redeemable and has no preemptive, subscription or conversion rights.

 

Transfer agent. The transfer agent and registrar for
our common stock is Computershare Trust Company, N.A. Its address is P.O. Box 30170, College Station, Texas 77842 and its phone
number is (866) 282-9695

 

Our common stock is subject and subordinate to any rights and
preferences granted under our certificate and any rights and preferences which may be granted to any series of preferred stock
by our board pursuant to the authority conferred upon our board under our certificate.

 

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Anti-Takeover Provisions

 

Some provisions of our certificate, bylaws and Delaware law
may have the effect of delaying, discouraging or preventing a change in control of us or changes in our management. Pursuant to
our certificate and bylaws:

 

		·	the board of directors is authorized to issue preferred stock without
stockholder approval;

		·	the board of directors is expressly authorized to make, alter or repeal
any provision of our bylaws

		·	stockholders may only alter, amend, rescind or adopt the bylaws with
the affirmative vote of two-thirds of the voting power of all outstanding stock of the Corporation, voting together as a single
class;

		·	the board of directors is classified, with members serving staggered
three-year terms

		·	stockholders may not cumulate votes in the election of directors;

		·	stockholders may take action only at a duly called meeting of the
stockholders, and stockholders are not permitted to act by written consent or cause the Corporation to call a special meeting;

		·	special meetings of the stockholders may only be called by the Chairman
of the Board (if any) or the Chief Executive Officer and shall be called by the Secretary at the written request, or by resolution
adopted by the affirmative vote of a majority of the Corporation’s directors;

		·	a director may be removed from office only for “cause”
at a special meeting of stockholders called for that purpose, by the affirmative vote of the holders of not less than two-thirds
of the shares entitled to elect the Director or Directors whose removal is being sought;

		·	stockholders must satisfy advance notice procedures to submit proposals
or nominate directors for consideration at a stockholders meeting; and

		·	we will indemnify officers and directors against losses that they
may incur as a result of investigations and legal proceedings resulting from their services to us, which may include services in
connection with takeover defense measures.

 

In addition, we are subject to the provisions of Section 203
of the Delaware General Corporation Law (“DGCL”). In general, the statute prohibits a publicly held Delaware corporation
from engaging in a “business combination” with an “interested stockholder” for a period of three years
after the date that the person became an interested stockholder unless, with some exceptions, the business combination or the transaction
in which the person became an interested stockholder is approved in a prescribed manner. Generally, a “business combination”
includes a merger, asset or stock sale or other transaction resulting in a financial benefit to the stockholder, and an “interested
stockholder” is a person who, together with affiliates and associates, owns (or within three years prior, did own) 15% or
more of the corporation’s outstanding voting stock. This provision may have the effect of delaying, deferring or preventing
a change in control without further action by the stockholders.

 

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Description of Our Securities

Registered Pursuant to Section 12

of the Securities Exchange Act of 1934

 

(a)Common Stock, par value $0.001 per share

Our common stock is traded on The NASDAQ Global Select Market under the ticker symbol “GARS”. There are no outstanding options or warrants to purchase our common stock. No common stock has been authorized for issuance under any equity compensation plans. Under Delaware law, our stockholders generally are not personally liable for our debts or obligations.

All shares of our common stock have equal rights as to earnings, assets, dividends and other distributions and voting and, when they are issued, will be duly authorized, validly issued, fully paid and nonassessable. Distributions may be paid to the holders of our common stock if, as and when declared by our board of directors out of funds legally available therefrom. Shares of our common stock have no preemptive, exchange, conversion or redemption rights and are freely transferable, except when their transfer is restricted by U.S. federal and state securities laws or by contract. In the event of our liquidation, dissolution or winding up, each share of our common stock would be entitled to share ratably in all of our assets that are legally available for distribution after we pay all debts and other liabilities and subject to any preferential rights of holders of our preferred stock, if any preferred stock is outstanding at such time. 

Each share of our common stock is entitled to one vote on all matters submitted to a vote of stockholders, including the election of directors. Except as provided with respect to any other class or series of stock, the holders of our common stock will possess exclusive voting power. Unless otherwise required by law, our certificate of incorporation or our second amended and restated bylaws, or our bylaws, any matter voted on by stockholders is decided by the affirmative vote of the holders of a majority of the votes cast by stockholders present in person or by proxy at an annual or special meeting. There is no cumulative voting in the election of directors, which means that holders of a majority of the outstanding shares of common stock can elect all of our directors, and holders of less than a majority of such shares will not be able to elect any directors.

(b)Provisions of our Certificate of Incorporation or Bylaws that may have the effect of delaying, deferring or preventing a change of control

The General Corporation Law of the State of Delaware, or the DGCL, and our certificate of incorporation and bylaws contain provisions that could make it more difficult for a potential acquirer to acquire us by means of a tender offer, proxy contest or otherwise. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to negotiate first with our board of directors. These measures may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders. These provisions could have the effect of depriving stockholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control over us. Such attempts could have the effect of increasing our expenses and disrupting our normal operations. We believe, however, that the benefits of these provisions outweigh the potential disadvantages of discouraging any such acquisition proposals because the negotiation of such proposals may improve their terms.

 

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, these provisions prohibit a Delaware corporation from engaging in any business combination 

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with any interested stockholder for a period of three years following the date that the stockholder became an interested stockholder, unless:

 

			
	
 
	
•
	
prior to such time, the board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

	
 
	
•
	
upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced; or

	
 
	
•
	
on or after the date the business combination is approved by the board of directors and authorized at a meeting of stockholders, by at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder.

Section 203 defines “business combination” to include the following:

			
	
 
	
•
	
any merger or consolidation involving the corporation and the interested stockholder;

	
 
	
•
	
any sale, transfer, pledge or other disposition (in one transaction or a series of transactions) of 10% or more of either the aggregate market value of all the assets of the corporation or the aggregate market value of all the outstanding stock of the corporation involving the interested stockholder;

	
 
	
•
	
subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

	
 
	
•
	
any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation owned by the interested stockholder; or

	
 
	
•
	
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

 

In general, Section 203 defines an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by any of these entities or persons.

 

The statute could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may discourage attempts to acquire us.

 

Election of Directors

 

Our certificate of incorporation and bylaws provide that the affirmative vote of the holders of a majority of the votes cast by stockholders present in person or by proxy at an annual or special meeting of stockholders and entitled to vote thereat will be required to elect a director. For purposes of the election of a director, our bylaws define “a majority of votes cast” to mean that the number of votes cast “for” a nominee’s election exceeds the number of votes cast “against” that nominee’s election (with “abstentions” and “broker non-votes” not counted as a vote cast either “for” or “against” a nominee’s election). Under our certificate of incorporation, our board of directors may amend the bylaws to alter the vote required to elect directors.

 

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Classified Board of Directors

 

Our board of directors is divided into three classes of directors serving staggered three-year terms, with the term of office of only one of the three classes expiring each year. A classified board of directors may render a change in control of us or removal of our incumbent management more difficult. This provision could delay for up to two years the replacement of a majority of our board of directors. We believe, however, that the longer time required to elect a majority of a classified board of directors helps to ensure the continuity and stability of our management and policies.

 

Number of Directors; Removal; Vacancies

 

Our certificate of incorporation provides that the number of directors will be set only by the board of directors in accordance with our bylaws. Our bylaws provide that a majority of our entire board of directors may at any time increase or decrease the number of directors. However, unless our bylaws are amended, the number of directors may never be less than four nor more than ten. Under the DGCL, unless the certificate of incorporation provides otherwise (which our certificate of incorporation does not), directors on a classified board of directors such as our board of directors may be removed only for cause by a majority vote of our stockholders. Under our certificate of incorporation and bylaws, any vacancy on the board of directors, including a vacancy resulting from an enlargement of the board of directors, may be filled only by vote of a majority of the directors then in office. The limitations on the ability of our stockholders to remove directors and fill vacancies could make it more difficult for a third-party to acquire, or discourage a third-party from seeking to acquire, control of us.

 

Action by Stockholders

 

Under our certificate of incorporation, stockholder action can be taken only at an annual or special meeting of stockholders or by unanimous written consent in lieu of a meeting. This may have the effect of delaying consideration of a stockholder proposal until the next annual meeting.

 

Advance Notice Provisions for Stockholder Nominations and Stockholder Proposals

 

Our bylaws provide that with respect to an annual meeting of stockholders, nominations of persons for election to the board of directors and the proposal of business to be considered by stockholders may be made only (1) by or at the direction of the board of directors, (2) pursuant to our notice of meeting or (3) by a stockholder who is entitled to vote at the meeting and who has complied with the advance notice procedures of the bylaws. Nominations of persons for election to the board of directors at a special meeting may be made only by or at the direction of the board of directors, and provided that the board of directors has determined that directors will be elected at the meeting, by a stockholder who is entitled to vote at the meeting and who has complied with the advance notice provisions of the bylaws.

 

The purpose of requiring stockholders to give us advance notice of nominations and other business is to afford our board of directors a meaningful opportunity to consider the qualifications of the proposed nominees and the advisability of any other proposed business and, to the extent deemed necessary or desirable by our board of directors, to inform stockholders and make recommendations about such qualifications or business, as well as to provide a more orderly procedure for conducting meetings of stockholders. Although our bylaws do not give our board of directors any power to disapprove stockholder nominations for the election of directors or proposals recommending certain action, they may have the effect of precluding a contest for the election of directors or the consideration of stockholder proposals if proper procedures are not followed and of discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal 

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without regard to whether consideration of such nominees or proposals might be harmful or beneficial to us and our stockholders.

 

Stockholder Meetings

 

Our certificate of incorporation and bylaws provide that any action required or permitted to be taken by stockholders at an annual meeting or special meeting of stockholders may only be taken if it is properly brought before such meeting. In addition, in lieu of such a meeting, any such action may be taken by the unanimous written consent of our stockholders. Our certificate of incorporation and bylaws also provide that, except as otherwise required by law, special meetings of the stockholders can only be called by the chairman of the board of directors, the chief executive officer or the board of directors. In addition, our bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of stockholders, including proposed nominations of candidates for election to the board of directors. Stockholders at an annual meeting may only consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the board of directors, or by a stockholder of record on the record date for the meeting who is entitled to vote at the meeting and who has delivered timely written notice in proper form to the secretary of the stockholder’s intention to bring such business before the meeting. These provisions could have the effect of delaying until the next stockholder meeting stockholder actions that are favored by the holders of a majority of our outstanding voting securities. 

 

Calling of Special Meetings of Stockholders

 

Our certificate of incorporation and bylaws provide that special meetings of stockholders may be called by our board of directors, the chairman of the board of directors and our chief executive officer.

 

Conflict with 1940 Act

 

Our bylaws provide that, if and to the extent that any provision of the DGCL or any provision of our certificate of incorporation or bylaws conflicts with any provision of the Investment Company Act of 1940, as amended, or the 1940 Act, the applicable provision of the 1940 Act will control.

 

 

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