Company: DGLY
Filing Date: 2025-09-17
Form Type: 8-K
Source: 0001493152-25-013877
Chunk: 6

Company: DIGITAL ALLY, INC.
Filing Date: 2025-09-17
Form: 8-K
Item: Item 1.01
Chunk 6
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 in the Purchase Agreement, including a commitment fee equaling to 3.0% of the Total Commitment, which will
be paid (i) in shares of Common Stock equal to 19.99% of the shares of Common Stock outstanding on the date of execution of the ELOC,
with the value per share to be based on the 5-day VWAP beginning on the date the resale registration statement is declared effective,
subject to certain ownership limitations, and (ii) the balance, in cash using the 30% of the proceeds from any subsequent financings,
including the ELOC. In addition, as required under the ELOC Purchase Agreement, the Company has reimbursed the ELOC Investor for the
reasonable legal fees and disbursements of the ELOC Investor’s legal counsel in the amount of $30,000.

   6  

The
ELOC Purchase Agreement will automatically terminate upon the earliest of (i) the first day of the month next following the 36-month
anniversary of the Closing Date, (ii) the ELOC Investor’s purchase of Purchase Shares having an aggregate purchase price equal
to Total Commitment under the ELOC Purchase Agreement, or (iii) the occurrence of certain other events set forth in the ELOC Purchase
Agreement. The Company has the right to terminate the ELOC Purchase Agreement at any time after Commencement, at no cost or penalty,
upon five (5) trading days’ prior written notice to the ELOC Investor, subject to certain conditions and the survival of
certain provisions of the ELOC Purchase Agreement and the ELOC Registration Rights Agreement. The ELOC Investor may terminate the ELOC
Purchase Agreement upon five (5) trading days’ prior written notice after the occurrence of certain events, including the
occurrence of a Material Adverse Effect or a Fundamental Transaction (as such terms are defined in the ELOC Purchase Agreement) or upon
the occurrence of certain other events as set forth in the ELOC Purchase Agreement. Neither the Company nor the ELOC Investor may assign
or transfer their respective rights and obligations under the ELOC Purchase Agreement, and no provision of the ELOC Purchase Agreement
or the ELOC Registration Rights Agreement may be modified or waived by the Company or the ELOC Investor.

The
ELOC Purchase Agreement and the ELOC Registration Rights Agreement contain customary representations, warranties, conditions and indemnification
obligations of the parties. The representations, warranties and covenants contained in such agreements were made only for purposes of