Document:

Description of Duos Technologies Group, Inc.

’s Securities

 

EXHIBIT 4.5

Description of Duos Technologies Group, Inc.’s Securities

The following is a summary of the terms of each class of securities of Duos Technologies Group, Inc. (the “Company”) that is registered under Section 12 of the Securities Exchange Act of 1934, as amended.

Common Stock

The following summary of the terms of the Company’s common stock, par value $0.001 per share (the “Common Stock”), is not complete and is subject to and qualified in its entirety by reference to the relevant provisions of the laws of the State of Florida, the Company’s Amended and Restated Articles of Incorporation, as amended (the “Articles of Incorporation”), and its Amended and Restated Bylaws (the “Bylaws”).  Copies of the Articles of Incorporation and Bylaws have been filed as exhibits with the Securities and Exchange Commission.

General

The total number of shares which the Company is authorized to issue is 510,000,000 shares, consisting of 500,00,000 shares of Common Stock and 10,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”).  As of March 23, 2021, we had 3,534,869 shares of Common Stock issued and outstanding and an aggregate of 6,205 shares of Preferred Stock of various series issued and outstanding.

The Common Stock is traded on the NASDAQ Capital Market under the symbol “DUOT.” The transfer agent for the Common Stock is Continental Stock Transfer & Trust.

Voting and Other Rights

Each holder of Common Stock shall be entitled to one vote for each share of Common Stock held of record by such holder on all matters on which shareholders generally are entitled to vote, except as may be otherwise provided in the Articles of Incorporation (including any Certificate filed with the Secretary of State of the State of Florida establishing the terms of a series of Preferred Stock) or by the Florida Business Corporation Act (the “Act”).  The holders of Common Stock do not have any cumulative voting rights.  Subject to the Act and the rights (if any) of the holders of any outstanding series of Preferred Stock, dividends may be declared and paid on the Common Stock at such time and in such manner as the Board of Directors, in its discretion, shall determine.  The Common Stock has no preemptive rights, conversion rights or other subscription rights, or redemption or sinking fund provisions.  Upon the dissolution, liquidation or winding up of the Company, subject to the rights (if any) of the holders of any outstanding shares of Preferred Stock, the holders of Common Stock shall be entitled to receive the assets of the Company available for distribution to shareholders ratably in proportion to the number of shares held by them.

 

Anti-Takeover Effects of Florida Law and our Articles of Incorporation and Bylaws

Certain provisions of Florida law, our Articles of Incorporation and our Bylaws contain provisions that could have the effect of delaying, deferring, or discouraging another party from acquiring control of us.  These provisions, which are summarized below, may have the effect of discouraging coercive takeover practices and inadequate takeover bids.  The provisions are also designed, in part, to encourage persons seeking to acquire control of us to first negotiate with our Board of Directors.  We believe that the benefits of increased protection of our potential ability to negotiate with any unfriendly or unsolicited acquiror outweighs the disadvantage of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

Board Composition and Filling Vacancies

Our Bylaws provide that, at a meeting of the shareholders called expressly for that purpose, any director or the entire Board of Directors may be removed, with or without cause, by a vote of the holders of a majority of the shares of each class or series of voting stock present in person or by proxy then entitled to vote at an election of directors.  Board vacancies and newly-created directorships resulting from (i) an increase in the authorized number of directors, (ii) death, (iii) resignation, (iv) retirement, (v) disqualification, or (vi) removal from office, may be filled by a majority vote of the remaining directors then in office, although less than a quorum, or by the sole remaining director, and each director so chosen shall hold office until the next annual meeting of shareholders and until such director’s successor shall have been duly elected and qualified.

Shareholder Meetings and Advance Notice Requirements

Our Bylaws establish advance notice procedures with regard to a shareholder’s ability to call a special meeting as well to shareholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of our shareholders.  These procedures provide that notice of shareholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken.  Generally, for a shareholder proposal to be timely, notice must be received at our principal executive offices not less than 120 days nor more than 150 days prior to the first anniversary of the date the Company released its proxy materials to its shareholders for the prior year’s annual meeting of shareholders or any longer period provided by applicable law.  Our Bylaws specify the requirements as to form and content of all shareholders’ notices.  These requirements may preclude shareholders from bringing matters before the shareholders at an annual or special meeting.

 

Sections 607.0901 and 607.0902 of the Act

As a Florida corporation, we are subject to certain anti-takeover provisions that apply to public corporations under Florida law. Pursuant to Section 607.0901 of the Act, a publicly held Florida corporation, under certain circumstances, may not engage in a broad range of business combinations or other extraordinary corporate transactions with an interested shareholder without the approval of the holders of two-thirds of the voting shares of the corporation (excluding shares held by the interested shareholder).

 

An interested shareholder is defined as a person who together with affiliates and associates beneficially owns more than 15% of a corporation’s outstanding voting shares. We have not made an election in our Articles of Incorporation to opt out of Section 607.0901.

 

In addition, we are subject to Section 607.0902 of the Act which prohibits the voting of shares in a publicly-held Florida corporation that are acquired in a control-share acquisition unless (i) our board of directors approved such acquisition prior to its consummation or (ii) after such acquisition, in lieu of prior approval by our board of directors, the holders of a majority of the corporation’s voting shares, exclusive of shares owned by officers of the corporation, employee directors or the acquiring party, approve the granting of voting rights as to the shares acquired in the control-share acquisition. A control-share acquisition is defined as an acquisition that immediately thereafter entitles the acquiring party to 20% or more of the total voting power in an election of directors.

Authorized Blank Check Preferred

The Board of Directors is authorized to provide, out of the unissued shares of Preferred Stock, a series of Preferred Stock and, with respect to each such series, to fix the number of shares constituting such series, and the designation of such series, the voting and other powers (if any) of the shares of such series, and the preferences and any relative, participating, optional or other special rights and any qualifications, limitations or restrictions thereof, of the shares of such series.  The powers, preferences and relative, participating, optional and other special rights of such series of Preferred Stock, and the qualifications, limitations or restrictions thereof, may differ from those of any and all other series of preferred Stock at any time outstanding.  The powers and rights of any series of Preferred Stock may be superior to, or otherwise limit, the rights and powers of the Common Stock.Exhibit 4.1

     

    

    DESCRIPTION OF SECURITIES

     

    
      Title of Class of Security:  Blended Strategies Portfolio - Class 0 Units and Class 2 Units

       

      Dividend Rights

      

      

    

    
      The Manager has sole discretion in determining what distributions of profits and income, if any, are made to investors.  Due to the capital appreciation investment objective of the
        Fund and the fact that Units may be redeemed monthly, the Manager does not anticipate paying dividends or making distributions to investors.

       

    

    
      Redemption Provisions

       

    

    
      The Units are not subject to any minimum holding period.  Members may redeem Units at their Net Asset Value as of each Valuation Day upon not less than three business days’ prior
        written notice to the Administrator, or upon such other notice and on such other dates as the Manager may permit in its sole and absolute discretion.  The Manager may reject a partial redemption request for an amount less than $10,000 or that would
        result in an investor owning Class 0 Units with a total Net Asset Value of less than $25,000 or Class 2 Units with a total Net Asset Value of less than $25,000.  The redemption proceeds normally will be remitted within 15 business days after the
        Valuation Day, without interest for the period from the Valuation Day to the payment date.  Redemption payments will ordinarily be made in U.S. dollars, and will be remitted either by wire transfer to an account designated by the investor or by
        check posted at the investor’s risk (as specified by the investor in his written redemption notice).  The Administrator will process redemption requests which are initially received by facsimile, but no part of the redemption proceeds will be paid
        to redeeming members until the Administrator has received the original redemption request signed by the redeeming member or by an authorized signatory of the redeeming member.  Neither the Fund nor the Administrator shall be responsible for any
        mis-delivery or non-receipt of any facsimile.  Facsimiles sent to the Administrator shall only be effective when actually received by the Administrator.

       

      The Manager has the right to require the compulsory redemption of all Units held by a member for any reason in its discretion.  Compulsory redemptions will be made at the Net Asset
        Value as of the Valuation Day next following the issuance of a notice of redemption to the member.  The Manager may suspend the right of any member to redeem Units, as well as the issuance of additional Units, upon the occurrence of any of the
        following circumstances:

       
        	

              	(1)	
                when any exchange, board of trade or organized inter-dealer market on which a significant portion of the assets of the Fund is regularly quoted or traded is closed (other than for holidays) or trading thereon
                  has been restricted or suspended;

              

         

        

        	

              	(2)	
                whenever, as a result of events, conditions or circumstances beyond the control or responsibility of the Fund, disposal of the assets of the Fund or other transactions in the ordinary course of the Fund’s
                  business involving the sale, transfer, delivery or withdrawal of securities or Funds is not reasonably practicable without being detrimental to the interests of the Fund or the investors;

              

         

        

        	

              	(3)	
                if it is not reasonably practicable to determine the Net Asset Value of the Units on an accurate and timely basis; or

              

         

        

        	

              	(4)	
                if the Manager has adopted a resolution calling for the liquidation and dissolution of the Fund.

              

      

    

    
       

      

      
        
          

      

      The Manager may withhold payment to any person whose Units have been tendered for redemption until after any suspension has been lifted.  Notice of any suspension will be given to
        any investor who has tendered his Units for redemption and to whom full payment of the redemption proceeds has not yet been remitted.  If a redemption request is not withdrawn by an investor following notification of a suspension, the redemption
        will be completed as of the next Valuation Day following the end of the suspension on the basis of the Net Asset Value as of such Valuation Day.

      

      

    

    
      Voting Rights

       

    

    
      Members have no voting rights with respect to any matters pertaining to the Fund, other than the right to vote on amendments to the Company Agreement approved by the Manager when
        such a vote is required by the Company Agreement or as otherwise provided under the terms of the Company Agreement or by law.

       

    

    
      Liquidation Rights

       

    

    
      The Company Agreement provides that the Fund shall remain in existence until the year 2050, except upon prior dissolution.  Dissolution of the Fund may occur at the end of its term
        or earlier upon the election of the Manager to dissolve the Fund or the occurrence of the bankruptcy of the Manager or any event which results in the Manager (or a successor to its business) ceasing to be the Manager of the Fund or the date on
        which the Fund ceases to have more than one member.  Upon the occurrence of any such event, the Manager (or a liquidator elected by a majority in interest of the members, if the Manager is unable to perform this function) is charged with winding up
        the affairs of the Fund and liquidating its assets.  Upon the liquidation of the Fund, its assets are to be distributed:  (i) first to satisfy the debts, liabilities and obligations of the entity (other than debts to members), including liquidation
        expenses, actual or anticipated; (ii) next to repay debts owing to the members; and (iii) finally to the members proportionately in accordance with the balances in their respective Capital Accounts.  Assets may be distributed in kind on a pro rata
        basis if the Manager or liquidator determines that such a distribution would be in the interests of the members in facilitating an orderly liquidation.

       

    

    
      Restrictions on Alienability

       

    

    
      The Units are subject to restrictions on alienability.  A member may not assign or pledge its Units in whole or in part, except by operation of law, nor substitute for itself as a
        member any other person, without the prior written consent of the Manager, which may be withheld in its sole and absolute discretion.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}]]