Document:

EX-4.1

 Exhibit 4.1 

FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AGREEMENT 

This FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AGREEMENT (the “Fifth Amendment”), is dated and effective as of
December 29, 2017 (the “Effective Date”), and is by and among Whitney Bank, a Mississippi state chartered bank, (hereinafter “Bank”), PHI, Inc., (hereinafter referred to as “PHI”), PHI Air Medical, L.L.C. and, PHI
Tech Services, Inc., (individually, collectively and interchangeably, the “Subsidiary Guarantors”, with PHI and the Subsidiary Guarantors individually, collectively and interchangeably referred to as the “Obligor”). 

Recitals 
 WHEREAS,
PHI, Subsidiary Guarantors and Bank entered into a Second Amended and Restated Loan Agreement dated as of September 18, 2013 (as amended, the “Agreement”), pursuant to which Bank issued a Revolving Line of Credit (as defined therein)
in the amount of $130,000,000.00 to PHI with a sublimit of $20,000,000.00 to be used to establish standby letters of credit but when issued reduces the amount available under the Revolving Line of Credit; 

WHEREAS, PHI, Subsidiary Guarantors and Bank entered into a First Amendment to the Second Amended and Restated Loan Agreement dated as
of March 5, 2014 (the “First Amendment”) in order to amend the Agreement to allow for, among other things, the execution of the 2014 Bond Indenture, dated as of March 17, 2014, executed by and among PHI, as issuer, the guarantors
named therein, and U.S. Bank National Association, as trustee, which provided for the issuance and sale of up to a maximum of $500 million in aggregate principal amount of new senior unsecured notes (the “Indenture”); 

WHEREAS, PHI, Subsidiary Guarantors and Bank entered into a Second Amendment to the Second Amended and Restated Loan Agreement dated as
of September 26, 2014 (the “Second Amendment”) in order to amend the Agreement to (i) extend the maturity date of the Revolving Line of Credit and (ii) provide that PHI may redeem, repurchase or retire any shares of its
capital stock from its employees not to exceed $25,000,000.00 in the aggregate. 
 WHEREAS, PHI, Subsidiary Guarantors and Bank
entered into a Third Amendment to the Second Amended and Restated Loan Agreement dated as of September 25, 2015 (the “Third Amendment”) in order to amend the Agreement to extend the maturity date of the Revolving Line of Credit; 

WHEREAS, PHI, Subsidiary Guarantors and Bank entered into a Fourth Amendment to the Second Amended and Restated Loan Agreement dated as
of September 25, 2016 (the “Fourth Amendment”) in order to amend the Agreement to extend the maturity date of the Revolving Line of Credit, to modify some of the financial covenants, and to make certain other changes further described
therein; and 
 WHEREAS, PHI, Subsidiary Guarantors and Bank now desire to again extend the maturity date of the Revolving Line of
Credit and make certain other changes further described herein; 
 NOW THEREFOR, for good and adequate consideration, the receipt of
which is hereby acknowledged, PHI, the Subsidiary Guarantors and Bank do hereby amend the Loan Agreement as follows: 

1.    As used herein, capitalized terms not defined herein shall have the meanings attributed to them in the Agreement.

 2.    Section A(1) of the Agreement is hereby amended and restated as follows: 

 

	A.	THE LOAN OR LOANS. Provided all obligations of Obligor are timely performed in favor of Bank contained in this Agreement and in any other agreement, whether now existing or hereafter arising: 

  
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 (1)    Bank shall make available to PHI a secured revolving line of credit
(the “Revolving Line of Credit” or the “Loan”) in the principal amount of ONE HUNDRED THIRTY MILLION AND NO/100 ($130,000,000.00) DOLLARS, that may be drawn upon by PHI on any business day of Bank during the period hereof until
and including March 7, 2019, on at least one day’s telephonic notice to Bank. The Revolving Line of Credit shall be evidenced by a commercial note, payable to Bank (the “Note”) and shall contain additional terms and conditions
and be identified with this Agreement. 
 3.    Section C (1) of the Agreement is hereby amended and restated as
follows: 
  

	C.	REPRESENTATIONS, WARRANTIES AND COVENANTS. PHI and the Subsidiary Guarantors, as applicable, represent, warrant and covenant to Bank that as of the date hereof and so long as the Loan shall be outstanding, except for
matters that could not reasonably be expected to have a material adverse effect on PHI and its subsidiaries, taken as a whole: 

  

	 	(1)	Organization and Authorization. (i) PHI is a validly organized corporation duly existing and in good standing under the laws of the State of Louisiana and is duly qualified as a foreign corporation in all
jurisdictions wherein the property owned or the business transacted by it make such qualifications necessary, except where the failure to be so qualified would not have a material and adverse effect on the business or property of PHI. Within the
last ten (10) years, PHI has not done business under any other name. PHI’s tax identification number is 72-0395707 and its domicile is 2001 SE Evangeline THWY, Lafayette, Louisiana 70508. PHI’s
corporate charter number with the Secretary of State of Louisiana is 34472577D. 

 (ii) PHI Tech Services, Inc. is a validly
organized corporation duly existing and in good standing under the laws of the State of Louisiana and is duly qualified as a foreign corporation in all jurisdictions wherein the property owned or the business transacted by it make such
qualifications necessary, except where the failure to be so qualified would not have a material and adverse effect on the business or property of PHI Tech Services, Inc. Within the last ten (10) years, PHI Tech Services, Inc. has not done
business under any other name. PHI Tech Services, Inc.’s tax identification number is 72-0835089 and its domicile is 2001 SE Evangeline THWY, Lafayette, Louisiana 70508. PHI Tech Services, Inc.’s
corporate charter number with the Secretary of State of Louisiana is 3236190D. 
 (iii) PHI Air Medical, L.L.C. is a validly organized
limited liability company duly existing and in good standing under the laws of the State of Louisiana and is duly qualified as a foreign limited liability company in all jurisdictions wherein the property owned or the business transacted by it make
such qualifications necessary, except where the failure to be so qualified would not have a material and adverse effect on the business or property of PHI Air Medical, L.L.C. Within the last ten (10) years, PHI Air Medical, L.L.C. has not done
business under any other name except PHI Air Medical, Inc. and Air Evac Services, Inc. PHI Air Medical, L.L.C.’s tax identification number is 72-1404705 and its domicile is 2001 SE Evangeline THWY,
Lafayette, Louisiana 70508. PHI Air Medical, L.L.C.’s corporate charter number with the Secretary of State of Louisiana is 34601740K. 

(iv) The execution, delivery and performance of this Agreement and all other documents delivered to Bank by PHI and the Subsidiary Guarantors,
as applicable, have been duly authorized and do not violate their respective articles of incorporation, bylaws, articles of organization, operating agreements (or other governing documents), material contracts or any applicable law or regulations.
PHI and PHI Air Medical, L.L.C. are each an air carrier certificated under 49 U.S.C. 44705 and shall comply with all rules and regulations of the Federal Aviation Administration. If PHI Tech Services, Inc. becomes an air carrier certificated under
49 U.S.C. 44705 or if any other subsidiary of PHI becomes an air carrier certificated under 49 U.S.C. 44705, PHI shall promptly notify Bank and cause such subsidiary to execute a new security agreement encumbering its Parts (as such term is
hereinafter defined) listing the location of the Parts in a format sufficient for filing with the Federal Aviation Administration. 

  
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 4.    Section C (3) (i) of the Agreement is hereby amended and restated in
full as follows: 
  

	 	(i)	2014 Indenture. PHI represents, warrants and covenants to the Bank that the terms and conditions of this Agreement do not violate the Indenture, or any other document executed or to be executed in connection therewith,
as all of the foregoing may be amended from time to time. 

 5.    Section C (6) of the Agreement is
hereby amended to (i) delete “and” at the end of subsection (f), (ii) amend and restate subsection (g) in its entirety, and (iii) add new subsections (h) and (i) as follows: 

(6)    Financial Information. 

**** 

(g)    as soon as available, but in any event within twenty-five (25) days after the end of each calendar month, PHI
will provide to Bank a Borrowing Base Certificate. The term “Borrowing Base” shall mean, as of the date of determination thereof, (i) the amount equal to the sum of eighty (80%) percent of the principal amounts owed on all Eligible
Accounts as of such date, plus (ii) the amount equal to the sum of fifty (50%) percent of the value of all Eligible Inventory as of such date, plus (iii) the market value of all Short Term Investments. The
Borrowing Base Certificate shall be in a form and content acceptable to Bank (“Borrowing Base Certificate”), prepared by PHI and certified as correct by the Chief Financial Officer or other person acceptable to Bank, identifying the
calculation of the Borrowing Base including balance and eligibility information current as of the date the Borrowing Base Certificate is furnished to Bank. The form attached as Exhibit A is acceptable to Bank. With the Borrowing Base Certificate,
PHI shall furnish reports showing (i) aging, name of the account debtor, and other information as reasonably requested by Bank to justify that the accounts used in the Borrowing Base Certificate are Eligible Accounts and (ii) the costs and
fair market value of the inventory and other information as reasonably requested by Bank to justify that the inventory used in the Borrowing Base Certificate are Eligible Inventory. 

“Eligible Accounts” shall mean accounts denominated in US dollars (as that term is defined in the Louisiana Uniform Commercial Code)
owned by Obligor and subject to a first perfected security interest in favor of Bank and otherwise eligible to be used as a basis for an advance to PHI under the Revolving Line of Credit. The following shall not be an Eligible Receivables:
(i) any account which has remained unpaid for more than 90 days from the date of invoice or an account which is subject to an offset or is disputed by an account debtor, (ii) any account owed by an account debtor which does not maintain
its principal office in the United States or which is not organized under the laws of any state in the United States, unless secured by an acceptable letter of credit subject to a first priority perfected security interest in favor of Bank;
(iii) any account which is owed by any parent, subsidiary, affiliate, related company or shareholder of PHI; and (iv) any account owed by an account debtor or its parent that has filed a proceeding for bankruptcy, reorganization,
arrangement, or any other relief afforded under the laws of any state or country or under the United States Bankruptcy Code. 

“Eligible Inventory” shall mean (i) “inventory” (as that term is defined in the Louisiana Uniform Commercial Code), which
term shall include all Parts, owned by Obligor and which are located in the United States and are subject to a first perfected security interest in favor of Bank. The following shall not be Eligible Inventory: (i) inventory which is not located
upon premises owned or leased by Obligor, (ii) inventory stored with a bailee, warehouseman, or similar party without Bank’s prior written consent, (iii) inventory located outside of the United States of America, and
(iv) inventory which Bank deems to be ineligible for any reason using reasonable credit judgment. 
 (h)    from
time to time, such other information as Bank may reasonably request. 

  
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 (i)    All references to financial statements of PHI shall mean the
consolidated financial statements of PHI, which shall include PHI and all of its Subsidiaries, prepared in conformity with GAAP applied on a basis consistent with that of the preceding fiscal year, and annually audited and certified by a public
accountant acceptable to the Bank and shall consist of balance sheets, statements of earnings and shareholders’ equities, and statements of cash flow. As used herein, the term “GAAP” shall mean generally accepted accounting principles
applied on a consistent basis as set forth in the FASB Accounting Standards Codification as established and published by the Financial Accounting Standards Board in the United States of America in effect from time to time. 

6.    Section C (8) of the Agreement is hereby amended to amend and restate subsection (c) and (d) and to add
subsections (e) and (f) as follows: 
  

	 	(8)	Financial Covenants and Ratios. 

 **** 

 

	 	(c)	Consolidated Net Worth. PHI shall not at any time permit its consolidated net worth to be less than FIVE HUNDRED MILLION and NO/100 ($500,000,000.00) DOLLARS. 

 

	 	(d)	Fixed Charge Coverage Ratio. PHI shall not at any time permit the ratio, calculated quarterly on a quarter by quarter basis over the life of the Revolving Line of Credit, of Cash Flow divided by Fixed Charges to be less
than 1.00 to 1.00. This covenant shall only be tested when the total of all Short Term Investments are less than $150,000,000.00 at the end of any fiscal quarter of PHI. 

Cash Flow shall mean the consolidated net income of PHI and its subsidiaries during such period plus to the extent deducted in determining net income,
all provisions for any federal, state, local and/or international income taxes plus all interest, depreciation, amortization and rental or lease expenses (including any rent or other payments for capital leases and other leases (in the event
such capital leases or other leases are treated differently than operating leases by GAAP)) and all other non-cash items of expense of PHI and its subsidiaries during such period. 

Fixed Charges shall mean during such period the sum of (i) the aggregate amount of all principal payments contractually due during such period, including
any due during such period on any long term debt of PHI and its subsidiaries, (ii) all interest contractually due during such period on any obligation of PHI and its subsidiaries, (iii) all expenses and rent owed during such period under
any lease entered into by PHI and its subsidiaries (including but not limited to capital leases in the event such capital leases are treated differently than operating leases by GAAP), (iv) all capital expenditures incurred by PHI and its
subsidiaries during such period to maintain its assets, including all of its aircrafts (excluding all capital expenditures to acquire new aircrafts and those which are acquired as a result of the exercise of a lease purchase option of aircraft
contained in any lease by PHI and its subsidiaries), provided however such capital expenditures shall be deemed to be not less than fifty (50%) percent of the consolidated depreciation expenses of PHI and its subsidiaries; and (v) all federal,
state, local, municipal and international charges or assessments incurred against the consolidated income, revenue, or assets of PHI and its subsidiaries and shall include all cash income taxes and franchise taxes. 

 

	 	(e)	Borrowing Base. At no time shall the total aggregate principal amount due on the Revolving Line of Credit Loan exceed the Borrowing Base. 

 

	 	(f)	Waivers. The Fixed Charge Coverage Ratio will be waived for the fiscal quarters ending on December 31, 2017 and March 31, 2018. 

7.    Section C (11) is hereby amended and restated as follows: 

(11)    Indebtedness and Liens. Except (i) as contemplated in this Agreement or as otherwise permitted by the Bank in
writing, (ii) in connection with credit card agreements with Bank which 

  
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shall not have outstanding balances in excess of $3,000,000.00, (iii) with respect to the pledge of cash or other liquid assets as security for letters of credits issued by PHI or any of its
subsidiaries in an aggregate amount not to exceed $25,000,000.00, as contemplated in Section A(2), (iv) as permitted in the Indenture, and (v) debt in an aggregate principal amount denominated in US dollars not to exceed $5,000,000.00 for a
working capital line of credit for an international subsidiary of PHI (one whose principal office is outside of the United States and who is chartered in a country other than the United States) in connection with the acquisition of HNZ Group, Inc.,
neither PHI nor any of its subsidiaries (i) shall create any additional obligations for borrowed money, or (ii) mortgage, encumber, or grant a security interest in any of their assets or suffer any liens or indebtedness to exist on any of
their assets. 
 8.    Section G of the Agreement is hereby amended and restated as follows: 

 

	G.	RATE OF INTEREST AND APPLICABLE FEES. All borrowings made under the Revolving Line of Credit shall accrue interest at LIBOR plus two and 75/100 (2.75%) percent. All borrowings under the Revolving Line of Credit may be
advanced or repaid at any time upon one day’s notice. All advances under the Revolving Line of Credit shall bear interest at the same interest rate and only one interest rate tranche shall be permitted. 

“LIBOR” shall mean the One Month London InterBank Offered Rate in U.S. Dollars as calculated and published by the Intercontinental
Exchange Benchmark Administration Ltd. (“ICE,” or the successor thereto if ICE is no longer making a London Interbank Offered Rate available) and in effect on the first day of each calendar month. The One Month ICE LIBOR shall be obtained
by Bank from an intermediary rate reporting source such as Bloomberg, L.P. or other authoritative rate reporting source as selected by Bank, and is based on an average of interbank offered rates for one month deposits in U.S. Dollars based on quotes
from designated banks in the London market. Notwithstanding anything in this Agreement to the contrary, if the One Month ICE LIBOR as reported by Bloomberg, L.P or other rate reporting source is less than zero, then it shall be deemed to be zero
percent (0.0%). The initial interest rate based on the One Month ICE LIBOR shall be determined as of September 1, 2016. LIBOR shall be adjusted on the first day of each calendar month. LIBOR is not necessarily the lowest rate charged by
Bank for any particular class of borrowers or credit extensions. PHI understands that Bank may make loans based on other rates as well. PHI may obtain the current LIBOR from Bank upon PHI’s request. Bank’s determination of LIBOR shall be
conclusive absent demonstrable error. 
 “Effective Federal Funds Rate” shall mean, the rate per annum (rounded upwards, if
necessary to the nearest 1/100th of 1%) equal to the effective federal funds rate (EFFR) calculated as a volume-weighted median of overnight federal funds transactions reported in FR 2420 Report of Selected Money Market Rates, as published by the
Federal Reserve Bank of New York and in effect as of the first calendar day of each month, plus a margin to be determined by Bank which reasonably correlates to LIBOR plus 2.75% percent. The EFFR on November 1, 2017 was 1.16%. The Effective
Federal Funds Rate will be adjusted as of the first day of each calendar month. 
 Interest on the outstanding principal owed on the
Revolving Line of Credit shall be computed and assessed on the basis of the actual number of days elapsed over a year composed of 360 days at the per annum rate of interest equal to LIBOR plus 2.75% percent. If LIBOR becomes unavailable during this
Agreement, Bank will use the Effective Federal Funds Rate and if it is not available, Bank may designate a substantially similar substitute index by notice to PHI. All interest accruing under the Revolving Line of Credit shall be payable monthly in
arrears on the first day of each month. 
 9.    COMMITMENT, UNUSED AND LOC FEES. PHI agrees to pay a commitment
fee of $325,000.00 to Bank on the Effective Date. PHI shall pay to Bank an annual fee, payable quarterly, equal to 1  1⁄2% (150 basis points) multiplied
by the face amount of any outstanding letters of credit issued pursuant to this Agreement payable on the first day of the following calendar quarter. PHI shall pay to Bank an unused fee equal to the daily principal amount undrawn under the Revolving
Line of Credit for 

  
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each calendar quarter multiplied by a rate equal to  1⁄4 of 1.00% (25 basis points) payable quarterly on
the first day of the following calendar quarter. 
 10.    In connection with the foregoing and only in connection with
the foregoing, the Agreement is hereby amended, but in all other respects all of the terms and conditions of the Agreement and all collateral documents, security agreements and guaranties (the “Collateral Documents”) remain unaffected.
Obligor agrees that this Fifth Amendment amends, modifies and confirms the Agreement but is not a novation of any of its terms. 

11.    PHI and the Subsidiary Guarantors acknowledge and agree that unless expressly stated herein, this Fifth Amendment
shall not constitute a waiver of any existing default(s) under the Agreement, the Collateral Documents or any documents executed in connection therewith, all of Bank’s rights and remedies being preserved and maintained. As of the Effective
Date, PHI and the Subsidiary Guarantors hereby represent and warrant to Bank that (i) no default has occurred under the Agreement and there has not occurred any condition, event or act which constitutes, or with notice or lapse of time (or
both) would constitute, a Default under the Agreement, (ii) all representations and warranties contained in the Agreement remain true and correct in all material respects, and (iii) all covenants contained in the Agreement have been timely
and completely performed, except as same may have been waived in writing by Bank. PHI and the Subsidiary Guarantors further acknowledge that the Collateral Documents, including but not limited to the Subsidiary Guaranties, remain in full force and
effect and continue to secure the payment and performance of all obligations of PHI to Bank, including but not limited to the Revolving Line of Credit, whether presenting existing or in the future, in accordance with their terms. 

12.    This Fifth Amendment may be executed in two or more counterparts, and it shall not be necessary that the signatures
of all parties hereto be contained on any one counterpart hereof; each counterpart shall be deemed an original, but all of which together shall constitute one and the same instrument. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
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 IN WITNESS WHEREOF, this Fifth Amendment is executed as of the Effective Date. 

 

											
	PHI, INC.	  	WHITNEY BANK	  	
						
	By:	  	 /s/ Al A. Gonsoulin
	 		  	By:	  	 /s/ H. Elder Gwin
	  	
		  	     Al A. Gonsoulin	 		  		  	     H. Elder Gwin	  	
		  	     Title: Chief Executive Officer	 		  		  	     Title: Senior Vice President	  	

  

			
	SUBSIDIARY GUARANTORS:
	
	PHI AIR MEDICAL, L.L.C.

			
		
	By:	 	 /s/ Trudy P. McConnaughhay

		 	     Trudy P. McConnaughhay
		 	     Title: Manager

			
	
	PHI TECH SERVICES, INC.

			
		
	By:	 	 /s/ Trudy P. McConnaughhay

		 	     Trudy P. McConnaughhay
		 	     Title: Vice President

  
 Page 7 of 7EXHIBIT
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

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