Document:

Exhibit 4.1
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DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934
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The following description sets forth certain material terms and provisions of CytoSorbents’ (“CytoSorbents,” “we,” “us,” and “our”) securities that are registered under Section 12 of the Securities Exchange Act of 1934, as amended.
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DESCRIPTION OF CAPITAL STOCK
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The following description of our common stock, $0.001 par value per share (“Common Stock”), together with the additional information we include herein, summarizes the material terms and provisions of our Common Stock. The following description of our Common Stock is a summary and does not purport to be complete. For the complete terms of our Common Stock please refer to our Second Amended and Restated Certificate of Incorporation (“Certificate of Incorporation”) and Amended and Restated Bylaws (“Bylaws”), each of which are incorporated by reference as exhibits to our Annual Report on Form 10-K of which this Exhibit 4.1 is a part. The Delaware General Corporation Law, or the DGCL, may also affect the terms of our Common Stock.
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General
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The total number of shares of capital stock that we have authority to issue is 105,000,000, consisting of (i) 100,000,000 shares of Common Stock and (iii) 5,000,000 shares of preferred stock, par value per share $0.001 (“Preferred Stock”). The outstanding shares of our Common Stock are fully paid and nonassessable.
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Common Stock
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Voting. For all matters submitted to a vote of stockholders, each holder of our Common Stock is entitled to one vote for each share registered in such holder’s name. Except as may be required by law and in connection with some significant actions, such as mergers, consolidations, or amendments to our Certificate of Incorporation that affect the rights of stockholders, holders of our Common Stock vote together as a single class. Generally, the election of members of our Board of Directors (the “Board”) is determined by the vote of the majority of the votes cast by stockholders with respect to that director’s election. However, in a Contested Election (as defined in our Bylaws), directors of the Board are elected by a plurality of the votes cast by the stockholders entitled to vote (and not by majority vote).
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Dividends. Subject to preferential dividend rights of any then outstanding Preferred Stock, the holders of Common Stock are entitled to receive dividends, as and when declared by our Board.
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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 our Common Stock will be entitled to receive all of our assets available for distribution to our stockholders, subject to any preferential or other rights of any then outstanding Preferred Stock.
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Other Rights and Restrictions. Subject to the preferential rights of any other class or series of stock, all shares of our Common Stock have equal dividend, distribution, liquidation and other rights, and have no preference, appraisal or exchange rights, except for any appraisal rights provided by Delaware law. Furthermore, holders of our Common Stock have no conversion, sinking fund or redemption rights, or preemptive rights to subscribe for any of our securities. Our Certificate of Incorporation and Bylaws do not restrict the ability of a holder of our Common Stock to transfer such holder’s shares of our Common Stock.
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The rights, powers, preferences and privileges of holders of our Common Stock are subject to, and may be adversely affected by, the rights of holders of shares of any series of Preferred Stock which we may designate and issue in the future.
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Listing. Our Common Stock is listed on the Nasdaq Capital Market under the symbol “CTSO.”
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Transfer Agent and Registrar. The transfer agent for our Common Stock is American Stock Transfer & Trust Company, LLC.
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Certain Effects of Authorized but Unissued Stock
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We have shares of Common Stock and Preferred Stock available for future issuance without stockholder approval. We may issue these additional shares for a variety of corporate purposes, including future public offerings to raise additional capital or facilitate corporate acquisitions or for payment as a dividend on our capital stock. The existence of unissued and unreserved Common Stock and Preferred Stock may enable our Board to issue shares to persons friendly to current management or to issue Preferred Stock with terms that could render more difficult or discourage a third-party attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the continuity of our management. In addition, if we issue Preferred Stock, the issuance could adversely affect the voting power of holders of Common Stock and the likelihood that such holders will receive dividend payments and payments upon liquidation.
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Delaware Law and Certificate of Incorporation and Bylaws Provisions
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Board of Directors. Our Bylaws provide that:
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		·
	subject to the rights of the holders of any series of preferred stock then outstanding, any directors, or the entire Board of Directors, may be removed from office at any time, with or without cause, by the affirmative vote of the holders of the majority of the voting power of all of the outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class; and

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		·
	vacancies in the Board resulting from such removal may be filled by a majority of the directors then in office, though less than a quorum, or by the sole remaining director. Directors so chosen shall hold office until the next annual meeting of stockholders at which the term of office of the class to which they have been elected expires.

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These provisions could discourage, delay or prevent a change in control of our company or an acquisition of our company at a price which many stockholders may find attractive. The existence of these provisions could limit the price that investors might be willing to pay in the future for shares of our Common Stock. These provisions may also have the effect of discouraging a third party from initiating a proxy contest, making a tender offer or attempting to change the composition or policies of our Board.
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Stockholder Action; Special Meeting of Stockholders. Our Certificate of Incorporation and Bylaws also provide that:
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	stockholder action may be taken only at a duly called and convened annual or special meeting of stockholders and then only if properly brought before the meeting

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	stockholder action may not be taken by written action in lieu of a meeting;

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	special meetings of stockholders may be called only by our Board, the Chairman of the Board or our Chief Executive Officer; and

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	in order for any matter to be considered “properly brought” before a meeting, a stockholder must comply with requirements regarding specified information and advance notice to us.

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These provisions could delay, until the next stockholders’ meeting, actions which are favored by the holders of a majority of our outstanding voting securities. These provisions may also discourage another person or entity from making a tender offer for our Common Stock, because a person or entity, even if it acquired a majority of our outstanding voting securities, would be able to take action as a stockholder only at a duly called stockholders’ meeting, and not by written consent.
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Indemnification. Our Certificate of Incorporation provides that we shall, to the fullest extent permitted by, and in accordance with the provisions of, the DGCL, indemnify each of our directors or officers or employees against expenses (including attorneys’ fees), judgments, taxes, fines and amounts paid in settlement, incurred by him in connection with, and shall advance expenses (including attorneys’ fees) incurred by him in defending, any threatened, pending or completed action, suit or proceeding (whether civil, criminal, administrative or investigative) to which such director, officer or employee is, or is threatened to be made, a party by reason of the fact that such director, officer or employee is or was a director or officer or employee of ours, or is or was serving at the request of us as a director, officer, partner, employee or agent of another domestic or foreign corporation, partnership, joint venture, trust or other enterprise. Advancement of expenses shall be made upon receipt of an undertaking, with such security, if any, as the Board or stockholders may reasonably require, by or on behalf of the person seeking indemnification to repay amounts advanced if it shall ultimately be determined that he or she is not entitled to be indemnified by us as authorized therein.
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Delaware Anti-Takeover Law
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We are subject to the provisions of Section 203 of the DGCL. Section 203 prohibits publicly held Delaware corporations from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder, unless the business combination is approved in a prescribed manner.  A “business combination” includes mergers, asset sales and other transactions resulting in a financial benefit to the interested stockholder.  Subject to certain exceptions, an “interested stockholder” is a person who, together with affiliates and associates, owns, or within three years did own, 15% or more of the corporation’s voting stock.  These provisions could have the effect of delaying, deferring or preventing a change of control of our company or reducing the price that certain investors might be willing to pay in the future for shares of our stock.Document

Exhibit 10.1
ELASTIC OFFER LETTER
(Date: January 11, 2022)

Ashutosh Kulkarni

Dear Ashutosh, 

Elasticsearch, Inc. (the “Company”), is pleased to offer you continued employment with the Company on the terms described below. 

1.Position. Following the Effective Date, your position will be acting Chief Executive Officer of Parent, reporting to the board of directors (the “Board”) of Elastic N.V. (the “Parent”). The Company anticipates that at the next Extraordinary General Meeting of the shareholders of Parent, to be held on or about March 9, 2022 (the “EGM”), you will be appointed as a member of the Board of Parent and become the Chief Executive Officer of Parent.  As this offer is for a position that will be an “executive officer” position (as such term is defined in Rule 3b-7 under the Securities and Exchange Act of 1934 (the “’34 Act”)) and an “officer” position (as such term is defined in Section 16 of the ’34 Act), the terms of this offer letter and your appointment to the position contemplated hereby are subject to the approval of the Board and the Compensation Committee of the Board (the “Compensation Committee”).  Your position, as applicable, shall be subject to the Articles of Association of the Parent, the Board Rules of the Parent and any required Board and shareholder approvals.

2.Compensation.  

a.Base Salary. Following the Effective Date, you will be paid a salary at the rate of $600,000 per year, which will be paid in accordance with the Company’s standard payroll policies and subject to applicable withholdings and other required deductions. 

b.Annual Incentive Compensation. Your annual target incentive compensation for fiscal year 2022 will be equal to the sum of (i) 60% of your base salary for the period between the commencement of fiscal year 2022 and the Effective Date, and (ii) 100% of your base salary for the period between the Effective Date and the end of fiscal year 2022, less applicable withholding, and will be subject to the terms and conditions of the Company’s Executive Incentive Compensation Plan or any successor plan or arrangement adopted and implemented by the Company. 

You should note that the Company reserves the right to modify salaries and/or incentive compensation opportunities from time to time as it deems necessary. 

3.Equity Award.  Subject to the approval of the Board or the Compensation Committee, you will be granted awards covering ordinary shares of Elastic N.V. with an aggregate approximate value of $12,000,000 (each an “Equity Award”, and together, the “Equity Awards”). 1/3 of the value of the Equity Awards will be in the form of a restricted stock unit award, and 2/3 of the value of the Equity Awards will be in the form of a nonstatutory stock option grant to purchase shares of Elastic N.V.  The dollar value of each Equity Award will be converted into a number of shares subject to the Equity Award at the time the award is granted in accordance with our equity grant practices in effect at that time. Subject to approval of your appointment as Chief Executive Officer of the Parent at the EGM, each Equity Award will vest over a 4-year period ratably on designated vesting dates following the applicable vesting commencement date in accordance with our equity grant practices, subject to your continuous service with the Company or its affiliates through each vesting date.  The vesting commencement date of your restricted stock unit award under this letter will be March 8, 2022, and the vesting commencement date of your stock option under this letter will be January 11, 2022.  Each Equity Award will be subject to the terms and conditions set forth in the Elastic N.V. Amended and Restated 2012 Stock Option Plan or a future equity plan, a standard form of either a restricted stock 

unit award agreement or an option award agreement adopted under such plan, as applicable, and our equity grant practices in effect from time to time.

4.Vacation and Holidays.  During your employment with the Company, you will be entitled to 4 weeks of paid vacation during each calendar year, which shall accrue ratably over the calendar year and be pro-rated for the remainder of this calendar year.  Such vacation shall be subject to and taken in accordance with the vacation policies of the Company.  We strongly encourage you to take the vacation that you accrue in a calendar year in the same calendar year.  Vacation must be taken by you at such time or times as mutually agreed between you and the Company.  You will also be entitled to the paid holidays as set forth in the Company’s policies.  Upon termination of your employment with the Company, you will be paid for any unused vacation accrued by you as of the termination date.

5.Employee Benefits.  As a regular employee of the Company, you will continue to be eligible to participate in the employee benefit plans, if any, currently and hereafter maintained by the Company, subject in each case to the terms and conditions of the plan in question, including any eligibility requirements set forth therein, and the determination of any person or committee administering the plan.  You should note that the Company may modify or terminate benefits from time to time as it deems necessary or appropriate.

6.Severance & Change of Control Benefits. As an executive of the Company, you will continue to be eligible to receive severance and change of control benefits under certain circumstances pursuant to the Change in Control and Severance Agreement between you and the Company dated December 2, 2020 (the “Severance Agreement”).  Accordingly, your potential severance and change of control benefits and the terms and conditions thereof are set forth in the Severance Agreement.

7.Confidential Information and Invention Assignment Agreement.  You will continue to be required as a condition of your employment with the Company to comply with the Company’s standard Confidential Information and Invention Assignment Agreement executed by you on January 3, 2021 (the “Confidentiality Agreement”). 

8.Employment Relationship.  Employment with the Company is for no specific period of time. Your employment with the Company will continue to be “at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause or notice. Any contrary representations which may have been made to you are superseded by this letter. This is the full and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and an authorized officer of the Company.

9.Location: You will continue to work from the Company’s Mountain View, CA Office. 

10.Outside Activities.  Except for pre-existing engagements previously disclosed to the Company in writing, following the Effective Date, while you render services to the Company, you agree that you will not engage in any other employment, consulting, or other business activity without the written consent of the Company. In addition, while you render services to the Company, you will not assist any person or entity in competing with the Company, in preparing to compete with the Company, or in hiring any employees or consultants of the Company.

11.Withholding and Required Deductions.  All forms of compensation referred to in this letter are subject to all withholding and any other deductions required by applicable law.

12.Entire Agreement and Governing Law.  This letter, together with the Severance Agreement and the  Confidentiality Agreement, supersedes and replaces any prior or contemporaneous understandings or agreements, whether oral, written or implied, between you and the Company regarding the matters described in this letter, including (but not limited to) the letter agreement between you and the 

Company dated December 2, 2020. This letter will be interpreted in accordance with the laws of the State of California without giving effect to provisions governing the choice of law.

13.Counterparts.  This letter may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Execution of a facsimile, electronic, or scanned image will have the same force and effect as execution of an original, and a facsimile signature, electronic, or scanned image will be deemed an original and valid signature.  If you wish to accept the terms of this letter, please sign electronically as presented. 

[Signature page follows.]

This offer, if not accepted, will expire at the close of business on January 18, 2022.

We look forward to your favorable reply and to working with you at Elastic.

Very truly yours,
ELASTICSEARCH, Inc 

/s/ Leah Sutton    
Leah Sutton, SVP Global HR
1/12/2022                
                                                                                            Date
ACCEPTED AND AGREED: 
                                                                                                
/s/ Ashutosh Kulkarni                
Ashutosh Kulkarni

1/12/2022
Date
Effective Date: January 11, 2022

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