Company: DGLY
Filing Date: 2025-12-12
Form Type: 424B3
Source: 0001493152-25-027378
Chunk: 9

Company: DIGITAL ALLY, INC.
Filing Date: 2025-12-12
Form: 424B3
Chunk 9
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 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 evidencing the Pledged Securities, and (b) any and all certificates and other instruments or documents representing any of the other Collateral, in each case, together with all Necessary Endorsements. The Debtors are, contemporaneously with the execution thereof, delivering to Agent, or have previously delivered to Agent, a true and correct copy of each Organizational Document governing any of the Pledged Securities.

Termination Rights

The PurchaseAgreement and the Security Interests shall terminate on the date on which all payments under the Notes have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however, that all indemnities of the Debtors contained in the Purchase Agreement shall survive and remain operative and in full force and effect regardless of the termination of the Purchase Agreement.

Registration Rights Agreement

Concurrently with entering into the Purchase Agreement, we also entered into the Registration Rights Agreement, in which we agreed to file one or more registration statements, as necessary, to register under the Securities Act the resale of the shares of all of the Registrable Securities, including (a) all the shares of Common Stock then issued and issuable upon conversion in full of the Notes, (b) all the shares of Common Stock then issued and issuable upon exercise in full of the Warrants, (c) all shares of Common Stock issued and issuable as interest or principal on the Notes assuming all permissible interest and principal payments are made in shares of Common Stock and the Notes are held until maturity, (d) any additional shares of Common Stock issued and issuable in connection with any anti-dilution provisions in the Notes or Warrants and (e) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar