Document:

Exhibit
10.100

 

 

February
12, 2020

 

VIA
ELECTRONIC MAIL

 

To
________________, a Holder of Warrants and the 8% Senior Secured Convertible Promissory Notes due August 4, 2020

 

	 	Re:	Warrants
    (the “Warrants”) and 8% Senior Secured Convertible Promissory Notes, due August 4, 2020 (the “Notes”)

 

Dear
Investor:

 

Reference
is made to the Company’s Warrants and the Notes between Digital Ally, Inc. (the “Company”) and the investors
who purchased Notes and Warrants pursuant to that certain Securities Purchase Agreement dated August 5, 2019 (the “Purchase
Agreement”). All capitalized terms not defined herein shall have the meanings ascribed in the Notes or the related Transaction
Documents.

 

This
letter is intended to constitute notice of the Company’s intention to (a) engage in a lower priced transaction as defined
in Section 5(i) of the Notes, substantially on the terms and subject to the conditions set forth in Amendment No. 1 to the Registration
Statement No. 333-235998 (as amended, supplemented, or otherwise modified from time-to time, the “Registration Statement”)
filed with the Commission on February 7, 2020 (the “Lower Priced Transaction”) and (b) engage in a subsequent financing
as defined in Section 4.13 of the Purchase Agreement, substantially on the terms and subject to the conditions set forth in the
Registration Statement (the “Subsequent Financing”), which transaction would trigger your right to participate in
such Subsequent Financing in an amount up to your Participation Maximum.

 

In
consideration for your (a) consent to the Company consummating the Lower Priced Transaction; (b) waiver of your right to participate
in the Subsequent Financing; and (c) agreement to the modifications of the Warrant as herein provided, the Company hereby agrees
effective February 12, 2020, to:

 

	 	a)	adjust
    the Exercise Price per share set forth in Section 2(b) of the Warrant to the price per Class A Unit contained in the Registration
    Statement and as set forth on Schedule 1 attached hereto, subject to adjustment thereunder as set forth in the Amended
    and Restated Warrant substantially in the form attached hereto as Exhibit A;
	 	 	 
	 	b)	add
    subsequent transaction participation rights to the Warrant as set forth in the Amended and Restated Warrant substantially
    in the form attached hereto as Exhibit A; and 
	 	 	 
	   	 c) 	 acknowledge that, in accordance with Rule 144
    under the Securities Act of 1933, as amended, the holding period of the Amended and Restated Warrant began on the Original
    Issuance Date and not to take any position contrary. 

 

    	 	1 of 5	 

    	 

    

 

 Your agreements in
this letter only apply to the extent that the Lower Priced Transaction is consummated on or before February 19, 2020. This letter
constitutes a limited one-time waiver of your rights with respect to the Lower Priced Transaction, and all of your rights otherwise
remain in full force and effect. 

   

 As of the filing of
the next amendment to the Registration Statement after February 7, 2020 with the Commission (the “Next Registration Statement
Amendment”), you shall not be in possession of any material, nonpublic information received from the Company, any of its
Subsidiaries or any of their respective officers, directors, employees, affiliates or agents, that is not disclosed in the Next
Registration Statement Amendment or in prior filings with the Commission. In addition, effective upon the filing of the Next Registration
Statement Amendment, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement,
whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, employees,
affiliates or agents, on the one hand, and you or any of your affiliates, on the other hand, shall terminate and be of no further
force or effect. The Company understands and confirms that you will rely on the foregoing in effecting transactions in securities
of the Company. The Company shall not, and shall cause its officers, directors, employees, affiliates and agents, not to, provide
you with any material, nonpublic information regarding the Company or any of its Subsidiaries from and after the date hereof without
your express prior written consent. To the extent that the Company, its Subsidiaries or any of its or their respective officers,
directors, employees, affiliates or agents delivers any material, non-public information to you without your prior written consent,
the Company hereby covenants and agrees that you shall not have any duty of confidentiality to the Company, any of its Subsidiaries
or any of their respective officers, directors, employees, affiliates or agents with respect to, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agents not to trade on the basis
of, such material, non-public information. 

 

Kindly
confirm your agreement with the terms of this letter agreement by completing and signing the consent and waiver set forth on the
page following the undersigned’s signature block.

 

Should
you have any questions, please feel free to contact the undersigned at (913) 232-5314 or stan.ross@digitalallyinc.com.

 

Thank
you.

 

	 	Very
    truly yours,
	 	 
	 	DIGITAL
    ALLY, INC.
	 	 	 
	 	By:
    	             
	 	Name:	 
	 	Title:	 

 

[Balance
of page intentionally left blank; the consent and waiver agreement follows on next page]

 

    	 	2 of 5	 

    	 

    

 

_______________________,
as an authorized signatory of the undersigned, hereby (a) consents to the Company consummating the Lower Priced Transaction; (b)
waives his right to participate in the Subsequent Financing; and (c) consents to the amendment of the Warrant as provided in this
letter agreement.

 

	 	Very
    truly yours,
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	3 of 5	 

    	 

    

 

Schedule
1

 

Price
Per Class A Unit

 

The
price per Class A Unit is $____________

 

    	 	4 of 5	 

    	 

    

 

Exhibit
A

 

Form
of Amended and Restated Warrant

 

    	 	5 of 5Exhibit

EXHIBIT 4.2

DESCRIPTION OF REGISTRANT’S 
COMMON STOCK REGISTERED 
PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2019, Pegasystems Inc. (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): shares of Common Stock, $0.01 par value per share (the “Common Stock”).
Description of Common Stock
The following summary description sets forth some of the general terms and provisions of the Common Stock. Because this is a summary description, it does not contain all of the information that may be important to you. It is subject to and qualified in its entirety by reference to the Company’s Restated Articles of Organization and Amendments thereto (the “Restated Articles of Organization”) and the Company’s Amended and Restated Bylaws (the “Bylaws”), each of which is an exhibit to the Annual Report on Form 10-K of which this description is a part. 
Authorized Capital Shares
The authorized capital stock of the Company consists of 200 million shares of Common Stock, and 1 million shares of Preferred Stock, $0.01 per share (the “Preferred Stock”), which may be issued in one or more series. The outstanding shares of our Common Stock are fully paid and nonassessable. The rights, privileges and preferences of holders of Common Stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of Preferred Stock which the Company may designate and issue in the future. There are no shares of Preferred Stock currently outstanding. 
Voting Rights
Holders of Common Stock are entitled to one vote per share on all matters voted on by shareholders of the Company, including the election of directors. Holders of Common Stock do not have cumulative voting rights. The Company has a declassified Board of Directors and the Bylaws provide for one-year terms for each director. All nominees will stand for election or re-election at each annual meeting of shareholders of the Company. Accordingly, a majority of the shares of Common Stock entitled to vote in any election of directors may elect all of the directors standing for election. Holders of Common Stock may act by unanimous written consent.
Dividend Rights
Subject to the preferential rights of holders of Preferred Stock outstanding, if any, the holders of Common Stock are entitled to receive dividends, if any, when and as declared from time to time by the Board of Directors of the Company in its discretion, out of assets legally available for the payment of dividends.
Liquidation Rights
Upon the liquidation, dissolution or winding up of the Company, the holders of Common Stock are entitled to receive ratably the net assets of the Company available after the payment of all debts and other liabilities and subject to the prior rights of any outstanding Preferred Stock.
Other Rights and Preferences
The Common Stock is not redeemable or exchangeable, is not subject to sinking fund provisions, does not have any conversion rights and is not subject to call. Holders of Common Stock have no preemptive rights to maintain their percentage of ownership in future offerings or sales of stock of the Company. 
Forum Selection Clause
Under the Bylaws, unless the Company consents in writing to the selection of an alternative forum, the sole and exclusive forum for making certain types of claims enumerated in the bylaws is the Business Litigation Section of the Superior Court of Suffolk County, Massachusetts (the “BLS”) irrespective of any waivable claims challenging jurisdiction or venue of the BLS (except that, in the event the BLS lacks jurisdiction over any such action or proceeding, then the sole and exclusive forum for such action or 

EXHIBIT 4.2

proceeding is the federal district court for the District of Massachusetts, Eastern Division). This provision applies to (a) any derivative action or proceeding brought on behalf of the Company, (b) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other employee of the Company to the Company or the Company’s shareholders, (c) any action asserting a claim arising pursuant to any provision of the Massachusetts Business Corporation Act, as in effect from time to time or the Restated Articles of Organization or the Bylaws, including, without limitation, any action to interpret, apply, enforce or determine the validity of the Restated Articles of Organization or the Bylaws, or (d) any action asserting a claim governed by the internal affairs doctrine.
Listing
The Common Stock is traded on The Nasdaq Stock Market LLC under the trading symbol “PEGA.”
Preferred Stock
The Board of Directors of the Company is authorized, subject to certain limitations prescribed by law, without further approval of the holders of Common Stock, to issue from time to time up to an aggregate of 1 million shares of Preferred Stock in one or more series and to fix or alter the designations, preferences, rights and any qualifications, limitations or restrictions of the shares of each such series thereof, including the dividend rights, dividend rates, conversion rights, voting rights, terms of redemption (including sinking fund provisions), redemption price or prices, liquidation preferences and the number of shares constituting any series or designations of such series. The issuance of Preferred Stock may have the effect of delaying, deferring or preventing a change of control of the Company and may adversely affect the market price of the Common Stock and the voting and other rights of the holders of Common Stock. 
Massachusetts Law 
The Company is subject to the provisions of Chapter 110F of the Massachusetts General Laws, the so-called Business Combination Statute. Under Chapter 110F, a Massachusetts corporation with at least 200 stockholders, such as the Company, may not engage in a "business combination" with an "interested stockholder" for a period of three years after the date of the transaction in which the person becomes an interested stockholder, unless (i) the interested stockholder obtains the approval of the Board of Directors of the Company prior to becoming an interested stockholder, (ii) the interested stockholder acquires 90% of the outstanding voting stock of the Company (excluding shares held by certain affiliates of the Company) at the time it becomes an interested stockholder, or (iii) the business combination is approved by both the Board of Directors of the Company and the holders of at least two-thirds of the outstanding voting stock of the Company (excluding shares held by the interested stockholder), which in the case of the stockholder approval is authorized at an annual or special meeting of stockholders, and not by written consent. 

An "interested stockholder" is a person who, together with affiliates and associates, owns (or at any time within the prior three years did own) 5% or more of the outstanding voting stock of the Company. A "business combination" includes a merger, a stock or assets sale, and other transactions resulting in a financial benefit to the stockholder.

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