Document:

Exhibit
4.6

 

DESCRIPTION
OF SECURITIES

REGISTERED
PURSUANT TO SECTION 12 OF THE

SECURITIES
EXCHANGE ACT OF 1934

 

As
of December 31, 2020, Digital Ally, Inc. (the “Company,” “we,” “us” or “our”)
has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock,
$0.001 par value per share (the “Common Stock).

 

General

 

The
following description of our Common Stock and certain provisions of our articles of incorporation, as amended (“Articles
of Incorporation”), and our Bylaws are summaries and are qualified by reference to our Articles of Incorporation and Bylaws.
Such summaries do not purport to be complete and are qualified in their entirety by reference to Nevada law, including the NRS,
as well as copies of our Articles of Incorporation and Bylaws, which have been filed as exhibits to prior reports filed by us
with the SEC and are incorporated by reference as exhibits to the registration statement of which this prospectus forms a part.
See “Where You Can Find More Information.”

 

Common
Stock

 

Our
authorized Common Stock consists of 50,000,000 shares of Common Stock, $0.001 par value per share. As of June 23, 2020, we had
26,581,600 shares of our Common Stock issued and outstanding, which excludes 63,518 shares held in treasury.

 

Voting
Rights

 

Each
share of our Common Stock entitles the owner to one vote. There is no cumulative voting. A simple majority can elect all of the
directors at a given meeting, and the minority would not be able to elect any director at that meeting.

 

Dividends

 

Each
share of our Common Stock is entitled to receive an equal dividend, if one is declared. We cannot provide any assurance that we
will declare or pay cash dividends on our Common Stock in the future. Any future determination to declare cash dividends will
be made at the discretion of our board of directors, subject to applicable laws, and will depend on our financial condition, results
of operations, capital requirements, general business conditions and other factors that our board of directors may deem relevant.
Our board of directors may determine it to be necessary to retain future earnings (if any) to finance our growth. See “Risk
Factors” and “Dividend Policy.”

 

Liquidation

 

If
the Company is liquidated, then assets that remain (if any) after the creditors are paid and the owners of any securities with
liquidation preferences senior to the Common Stock are paid will be distributed to the owners of our Common Stock pro rata.

 

Preemptive
Rights

 

Owners
of our Common Stock have no preemptive rights. We may sell shares of our Common Stock to third parties without first offering
such shares to current stockholders.

 

Redemption
Rights

 

We
do not have the right to buy back shares of our Common Stock except in extraordinary transactions, such as mergers and court approved
bankruptcy reorganizations. Owners of our Common Stock do not ordinarily have the right to require us to buy their Common Stock.
We do not have a sinking fund to provide assets for any buy back.

 

    	 

    	 

    

 

Conversion
Rights

 

Shares
of our Common Stock cannot be converted into any other kind of stock except in extraordinary transactions, such as mergers and
court approved bankruptcy reorganizations.

 

Nonassessability

 

All
outstanding shares of our Common Stock are fully paid and nonassessable.

 

Listing

 

Our
Common Stock trades on Nasdaq under the symbol “DGLY.”

 

Transfer
Agent and Registrar

 

Our
transfer agent and registrar for our Common Stock in the United States is Action Stock Transfer Corporation, located at 2469 E.
Fort Union Blvd., Salt Lake City, UT 84122. Its telephone number is (801) 274-1088.

 

    	2acu-ex4vi_9.htm

Exhibit 4(vi)

 

DESCRIPTION OF COMMON STOCK

 

The authorized capital stock of the Company consists solely of the Company’s common stock. Set forth below is a description of the common stock of the Company.  The description is intended to be a summary and is subject to, and is qualified in its entirety by reference to, the provisions of the Company’s Certificate of Incorporation, as amended (“Restated Certificate of Incorporation”), and Amended and Restated Bylaws (“By-laws”), and Title 33 “Corporations,” of the Connecticut General Statutes. Copies of our Restated Certificate of Incorporation and By-laws appear as exhibits to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

 

Authorized Capital Stock

 

The Company’s Restated Certificate of Incorporation provides that the Company has authority to issue 8,000,000 shares of common stock, par value $2.50 per share.  Each share of common stock has the same rights as, and is identical in all respects to, each other share of common stock. On March 6, 2020, there were 3,352,130 shares of common stock issued and outstanding.

 

Voting Rights

 

Holders of Company’s common stock are entitled to one vote per share held of record on all matters submitted to a vote of shareholders.  Our shareholders do not have cumulative voting rights in the election of directors.

 

Dividend Rights

 

Subject to certain limitations set forth in the Connecticut General Statutes, the holders of common stock are entitled to such dividends and distributions, whether payable in cash or property, as may be declared from time to time by our Board of Directors from legally available funds.

 

Liquidation Rights

 

Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, holders of common stock will be entitled to share ratably in any of the Company’s assets available for distribution after the payment in full of all debts and liabilities of the Company.

 

 

 

Preemptive and Other Rights

 

The holders of common stock are not entitled to preemptive, subscription, redemption or sinking fund rights.  Shares of common stock are not convertible into shares of any other class of capital stock.

 

Fully Paid Shares

 

All of the outstanding shares of common stock are fully paid and nonassessable.

 

Transfer Agent

 

The transfer agent and registrar for the Company’s common stock is American Stock Transfer & Trust Company.

 

Listing

 

The common stock is traded on the NYSE American under the trading symbol “ACU.”Document

Verint Systems Inc.
Stock Bonus Program
Originally Adopted: September 1, 2011
Revised: March 19, 2021

This document outlines the Verint Systems Inc. Stock Bonus Program (the “Stock Bonus Program”), under which participating employees are eligible to receive a portion of their earned bonus otherwise payable in cash in shares of Verint common stock.

Eligibility:  The Stock Bonus Program is only being offered to selected employees at the discretion of management, and may include employees on pre-established bonus plans and/or employees eligible to receive discretionary cash bonuses (discretionary bonus plans).  For the avoidance of doubt, in the case of discretionary cash bonuses, it is solely in management’s discretion whether or not such bonuses are eligible to be included in the Stock Bonus Program.  

Executive officers may participate in the program, subject to the approval of the Company’s Board of Directors (the “Board”), and subject to a one year vesting period (measured from the Value Date), solely with respect to the shares issued over and above the number that would have been issued if the officer had purchased the shares at market price on the Value Date (the “Incentive Shares”). 

Summary:  The program will allow eligible employees to make an election to receive a specified portion of their earned annual bonus payout (otherwise payable in cash) in the form of shares of Verint common stock.  

Management will have discretion as to whether or not eligible employees on discretionary bonus plans will be required to make an election.  In the event an election is not made, management will have discretion to pay up to 75% of an employee’s earned discretionary bonus (otherwise payable in cash) in shares of Verint common stock.  

The percentage elected by an employee (or designated by management, in the case of employees on discretionary plans) is referred to herein as the “Election Percentage”.  

If a participating employee changes to a non-bonus role after enrolling (or being enrolled) in the program for a given program year, the Election Percentage will apply to any bonus earned by the employee prior to such change in role, with the timing of the share delivery to be in accordance with the other terms and conditions of this document. 

Incentive: As an incentive to participate in the program (including for eligible employees who do not make an election), the stock price at which an employee’s bonus payout will be converted into shares of Verint common stock will be at a discount to market price (as described below).  The discount will be established by the Board on a year by year basis in conjunction with its annual funding decision (as described below).  The discount may fluctuate from year to year (the discount for a given year, expressed as a percentage, the “Program Year Discount”) and will be reflected on the enrollment forms for each program year and also communicated to participating employees who do not make an election.  For the avoidance of doubt, in the event that the threshold for employee bonuses to be earned is not met under the Company’s employee bonus plans in a given year, any employee bonuses paid on a discretionary basis will not participate in the Stock Bonus Program.

Funding:  Each year, the Board will consider an allocation of shares of Verint common stock to fund the Stock Bonus Program.  This allocation may fluctuate from year to year and in some years may be zero.  As a result, the availability of the program in any given year is subject to the Board’s decision to fund the program.

Maximum Number of Shares:  In addition to (and subject to) the Board’s decision to fund the program in a given year, the Board will also establish a maximum number of shares that are permitted to be delivered to participants in the program for that year (the “Share Cap”).  As a result, the Company reserves the right to reduce the number of shares delivered to each participant in order to remain under the Share Cap, notwithstanding a participant’s Election Percentage.  The Company will determine the manner in which the Share Cap is applied, if needed.

Any amounts due to a participant that are not paid in shares due to the Board’s decision not to fund the program or due to the Share Cap will instead be paid in cash at the original cash amount.1

__________________________________
1    This provision is not applicable to UK and Hong Kong employees.  Please see the Country-Specific Addenda below.

Process:  Prior to the scheduled delivery date of the shares, the HR and/or Finance departments will determine the amount of earned bonus available to be converted into shares for each participant based on the participant’s Election Percentage.  The number of shares to be delivered to the participant will be calculated on the “Value Date” using the Company’s discounted stock price as of the Value Date (rounded down to the nearest whole share).

•The scheduled delivery date will be specified on the enrollment form for the program year and is subject to change by the Company.  Please note that the scheduled delivery date may be different from (earlier or later than) the date that cash bonuses are paid in such year.  The scheduled delivery date will also be communicated to participating employees who do not make an election.

•The Value Date will be the 5th trading day prior to the scheduled delivery date and will be specified on the enrollment form for the program year (subject to change).  The Value Date will also be communicated to participating employees who do not make an election.

•The discounted stock price to be used for the conversion described above on the Value Date will be the average of the closing prices of Verint’s common stock over the five trading days preceding the Value Date, minus the Program Year Discount.

•Subject to the requirements of local law and any other written agreement that may exist between the participant and Verint:2 (1) the participant must be employed by Verint Systems Inc. or a subsidiary thereof on the Value Date to be eligible to receive the shares scheduled to be delivered on the delivery date and (2) executive officers must be employed by Verint Systems Inc. or a subsidiary thereof on the vesting date to be eligible to receive the Incentive Shares.  Notwithstanding the foregoing, if a participant is terminated without cause between the date the participant receives his or her cash bonus for the program year (generally in April or May) and the Value Date (generally in June or July), the Company will pay the participant the unpaid portion of his or her bonus in cash at the original cash amount.3     

Enrollment and Elections:    Eligible employees (other than eligible employees on discretionary bonus plans who do not make an election) wishing to participate in the Stock Bonus Program must complete and return the enrollment form for the program year (which will be provided to eligible employees) to the Equity Administration team by the deadline specified in the enrollment form, pursuant to the instructions on the enrollment form.  Eligible employees (other than eligible employees on discretionary bonus plans who do not make an election) who do not return the enrollment form by the specified deadline will not be enrolled for that program year.  Enrollment in the program will be done on a year by year basis and each year will require the completion of a separate enrollment form.  Employees may not enroll in the program while subject to a trading blackout.  Please note that once enrolled in the program for a particular year, participants may not cancel their enrollment or change their Election Percentage for that year (unless the Company elects to re-open the enrollment window to permit changes to the Election Percentages).

The Company may, at its option, choose to provide for multiple enrollment windows during the course of the year based on the number of shares available, however, employees who submit their enrollment forms during the first enrollment window of the year will generally be given priority with respect to the Share Cap in the event the Company chooses to offer subsequent enrollment windows.

In some countries, participants other than executive officers will be required as part of the enrollment form to make an irrevocable election about whether they prefer, in the event they are subject to a trading blackout on the Value Date, to receive the shares as scheduled or to revert to their original cash payment.  If the enrollment form does not provide for such an election, or for executive officers, subject to the other terms and conditions of the program, the participant will receive the shares as scheduled irrespective of any trading blackout.  

Eligible employees on discretionary bonus plans who do not make an election will not receive an enrollment form.  Other than for any such employees in the UK or Hong Kong (who will, subject to the other terms and conditions of the program, continue to receive shares as scheduled), such employees will automatically revert to their original cash payment in the event they are subject to a trading blackout on the Value Date. 

__________________________________
2    The preceding clause is not applicable to UK and Hong Kong employees.  Please see the Country-Specific Addenda below.
3    This provision is not applicable to UK and Hong Kong employees.  Please see the Country-Specific Addenda below.

Delivery and Taxes: Shares will be delivered to participants’ E*TRADE accounts on or about the scheduled delivery date (or following the applicable vesting date, in the case of Incentive Shares for executive officers), subject to satisfaction of applicable withholding taxes, if any.  An account will be established at E*TRADE for participants who do not already have an account.

For employees subject to withholding taxes upon delivery of stock, the Company will automatically issue a net number of shares to participants following (i) the sale of the required number of shares on the participants’ behalf for employees who are not in blackout at such time or (ii) the withholding of the required number of shares from employees who are in blackout at such time.  There is no other option for paying withholding taxes under this program in connection with the delivery of shares.  Withholding taxes, if any, will be calculated based on the closing price of the Company’s common stock on the Value Date.

All shares will be issued under the Company’s 2019 Long-Term Stock Incentive Plan (the “2019 Plan”), or a successor plan if applicable, and will be subject to the terms and conditions thereof, including the administrative provisions thereunder, as applicable.  A copy of the 2019 Plan and related S-8 prospectus is available in the library on E*trade.com or upon request from the Equity Administration team.  Consistent with the Company’s Insider Trading Policy, participants who are subject to a trading blackout at the time the shares are delivered will not be able to sell such shares until the blackout has been lifted.

Other Terms and Conditions:  Enrollment in the Stock Bonus Program is not a guaranty of eligibility for the program in a subsequent year or a guaranty of future employment.  A participant’s right to receive a payment in shares under this program is subject to the terms and conditions of the participant’s bonus plan and/or employment agreement, if any, and the requirement that the participant be employed by Verint Systems Inc. or a subsidiary thereof on the Value Date and/or vesting date (as applicable).  Subject to the requirements of local law and any other written agreement that may exist between the participant and Verint,4 participants who terminate their employment prior to the Value Date (or vesting date, if applicable) for any reason will forfeit any shares or cash payment otherwise payable hereunder on the corresponding delivery date or vesting date (if applicable).  Notwithstanding the foregoing, as noted above, if a participant is terminated without cause between the date the participant receives his or her cash bonus for the program year (generally in April or May) and the Value Date (generally in June or July), the Company will pay the participant the unpaid portion of his or her bonus in cash at the original cash amount.5

Notwithstanding any other provision of this document, in the event of a corporate transaction impacting Verint’s common stock, the shares to be awarded under this program may be adjusted, converted, replaced, or otherwise modified in accordance with the terms of the 2019 Plan.

The Company and employee hereby acknowledge that each has requested that the present document be drafted in the English language.  Les parties reconnaissent avoir requis que le présent document soit rédigé en anglais.

Country-Specific Addenda – applicable to UK and Hong Kong employees only 

In order to enroll in the Stock Bonus Program, employees in the UK and Hong Kong will be required to waive their right to receive the portion of their bonus that they wish to receive in stock.  This waiver is included in the UK and Hong Kong enrollment form.

It will be solely at the Board or Company’s discretion whether or not to (1) accept an employee’s application to waive the applicable portion of his or her bonus and pay it in stock and (2) pay any portion of the waived amount in cash if there is an insufficient share pool available due to the Board’s decision not to fund the program or due to the Share Cap.

WA R N I N G

The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.
 

__________________________________
4       The preceding clause is not applicable to UK and Hong Kong employees.  Please see the Country-Specific Addenda below. 
5    This provision is not applicable to UK and Hong Kong employees.  Please see the Country-Specific Addenda below.

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