Company: DGLY
Filing Date: 2025-10-21
Form Type: DRS
Source: 0001493152-25-018831
Chunk: 10

Company: DIGITAL ALLY, INC.
Filing Date: 2025-10-21
Form: DRS
Chunk 10
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 Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with all the Subsidiaries of the Company (such subsidiaries, the “ Guarantors” and together with the Company, the “ Debtors”), the holders of the Company’s Senior Secured Convertible Notes due twelve (12) months following their dates of issuance, in the original aggregate principal amount of $750,000 (collectively, the “ Notes”) signatory hereto, their endorsees, transferees and assigns (collectively, the “ Secured Parties”) and Yield Point NY LLC, in its capacity as agent for the Secured Parties (“ Agent”).

Pursuant to the Purchase Agreement, the Secured Parties have severally agreed to extend the loans to the Company evidenced by the Notes.

Pursuant to a certain Subsidiary Guarantee, dated as of the date hereof (the “Guarantee”), the Guarantors have jointly and severally agreed to guarantee and act as surety for payment of such Notes.

In order to induce the Secured Parties to extend the loans evidenced by the Notes under the Purchase Agreement, each Debtor has agreed to execute and deliver to the Secured Parties this Agreement and to grant the Secured Parties, pari passu with each other Secured Party and through the Agent, a security interest in certain property of such Debtor to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under the Notes and the Guarantors’ obligations under the Guarantee.

Grant of Security Interest in Collateral

As an inducement for the Secured Parties to extend the loans as evidenced by the Notes and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations, each Debtor, other than TicketSmarter, Inc., which grants a second priority security interest, hereby unconditionally and irrevocably pledges, grants and hypothecates to the Secured Parties a first priority security interest in and to, a lien upon and a right of set-off against all of their respective right, title and interest of whatsoever kind and nature in and to, the Collateral (a “ Security Interest” and, collectively, the “ Security Interests”).

Delivery of Certain Collateral

Contemporaneously or prior to the execution of this Agreement, each Debtor shall deliver or cause to be delivered to the Agent (a) any and all certificates and other instruments representing or evidencing the Pledged Securities,