Company: DGLY
Filing Date: 2025-11-26
Form Type: S-1
Source: 0001493152-25-025056
Chunk: 9

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-26
Form: S-1
Chunk 9
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 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 thereof (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 the Purchase 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.

At no point may the Selling
Stockholder convert any portion of the Note or exercise any Warrants, if such conversion or exercise, as applicable, would make the Selling
Stockholder beneficially own greater than 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to
such issuance of shares of Common Stock.

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 the Purchase Agreement, each Debtor shall deliver or cause to be delivered to the Agent (a) any and all certificates and other instruments representing or