Document:

Exhibit 10.58

 

 

 

VOTING
AGREEMENT

 

VOTING
AGREEMENT, dated as of August 25, 2014 (this “Agreement”), by and among Digital Ally, Inc., a Nevada corporation
(the “Company”), and the shareholders listed on the signature pages hereto under the heading “Shareholders”
(each, a “Shareholder” and collectively, the “Shareholders”).

 

WHEREAS,
the Company and certain investors (each, an “Investor”, and collectively, the “Investors”)
have entered into a Securities Purchase Agreement, dated as August 25, 2014 (the “Securities Purchase Agreement”),
pursuant to which, among other things, the Company has agreed to issue and sell to the Investors and the Investors have agreed
to purchase, (i) senior secured convertible notes of the Company (the “Notes”) pursuant to which the shares
of the Company’s common stock, par value $0.001 per share (the “Common Stock”) may be issued and (ii)
warrants which will be exercisable to purchase shares of Common Stock.

 

WHEREAS,
as of the date hereof, the Shareholders own collectively 294,396 shares of Common Stock, which represent in the aggregate approximately
10.9% of the total issued and outstanding capital stock of the Company; and

 

WHEREAS,
as a condition to the willingness of the Investors to enter into the Securities Purchase Agreement and to consummate the transactions
contemplated thereby (collectively, the “Transaction”), the Investors have required that each Shareholder agrees,
and in order to induce the Investors to enter into the Securities Purchase Agreement, each Shareholder has agreed, to enter into
this Agreement with respect to all the Common Stock now owned and which may hereafter be acquired by the Shareholders and any
other securities, if any, which such Shareholder is currently entitled to vote, or after the date hererof, becomes entitled to
vote, at any meeting of shareholders of the Company (the “Other Securities”).

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, and intending to be legally
bound hereby, the parties hereto hereby agree as follows:

 

Article
I

VOTING AGREEMENT OF THE SHAREHOLDER

 

SECTION
1.01.Voting Agreement. Subject to the last sentence of this Section 1.01, each Shareholder hereby agrees that at any
meeting of the shareholders of the Company, however called, and in any action by written consent of the Company’s shareholders,
each of the Shareholders shall vote the Common Stock and the Other Securities: (a) in favor of the Stockholder Approval (as defined
in the Securities Purchase Agreement) as described in Section 4(p) of the Securities Purchase Agreement; and (b) against any proposal
or any other corporate action or agreement that would result in a breach of any covenant, representation or warranty or any other
obligation or agreement of the Company under the Securities Purchase Agreement or which could result in any of the conditions
to the Company’s obligations under the Securities Purchase Agreement not being fulfilled. Each Shareholder acknowledges
receipt and review of a copy of the Securities Purchase Agreement and the other Transaction Documents (as defined in the Securities
Purchase Agreement). The obligations of the Shareholders under this Section 1.01 shall terminate immediately following the occurrence
of the Stockholder Approval. 

 

    	 

    	 

    

 

Article
II

REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDER

 

Each
Shareholder hereby represents and warrants, severally but not jointly, to each of the Investors as follows:

 

SECTION
2.01.Authority Relative to This Agreement. Each Shareholder has all necessary legal capacity, power and authority to
execute and deliver this Agreement, to perform his or its obligations hereunder and to consummate the transactions contemplated
hereby. This Agreement has been duly executed and delivered by such Shareholder and constitutes a legal, valid and binding obligation
of such Shareholder, enforceable against such Shareholder in accordance with its terms, except (a) as such enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or similar laws now or hereafter
in effect relating to, or affecting generally the enforcement of creditors’ and other obligees’ rights, (b) where
the remedy of specific performance or other forms of equitable relief may be subject to certain equitable defenses and principles
and to the discretion of the court before which the proceeding may be brought, and (c) where rights to indemnity and contribution
thereunder may be limited by applicable law and public policy.

 

SECTION
2.02.No Conflict. (a) The execution and delivery of this Agreement by such Shareholder does not, and the performance
of this Agreement by such Shareholder shall not, (i) conflict with or violate any federal, state or local law, statute, ordinance,
rule, regulation, order, judgment or decree applicable to such Shareholder or by which the Common Stock or the Other Securities
owned by such Shareholder are bound or affected or (ii) result in any breach of or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, or result in the creation of a lien or encumbrance on any of the Common Stock or the Other Securities owned
by such Shareholder pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or
other instrument or obligation to which such Shareholder is a party or by which such Shareholder or the Common Stock or Other
Securities owned by such Shareholder are bound.

 

(b)The
execution and delivery of this Agreement by such Shareholder does not, and the performance of this Agreement by such Shareholder
shall not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental entity
by such Shareholder.

 

SECTION
2.03.Title to the Stock. As of the date hereof, each Shareholder is the owner of the number of shares of Common Stock
set forth opposite its name on Appendix A attached hereto, entitled to vote, without restriction, on all matters brought
before holders of capital stock of the Company, which Common Stock represent on the date hereof the percentage of the outstanding
stock and voting power of the Company set forth on such Appendix. Such Common Stock are all the securities of the Company owned,
either of record or beneficially, by such Shareholder. Such Common Stock are owned free and clear of all security interests, liens,
claims, pledges, options, rights of first refusal, agreements, limitations on such Shareholder’s voting rights, charges
and other encumbrances of any nature whatsoever. No Shareholder has appointed or granted any proxy, which appointment or grant
is still effective, with respect to the Common Stock or Other Securities owned by such shareholder.

 

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Article
III

COVENANTS

 

SECTION
3.01.No Disposition or Encumbrance of Stock. Each Shareholder hereby covenants and agrees that, until the Stockholder
Approval has been obtained, except as contemplated by this Agreement, such Shareholder shall not offer or agree to sell, transfer,
tender, assign, hypothecate or otherwise dispose of, grant a proxy or power of attorney with respect to, or create or permit to
exist any security interest, lien, claim, pledge, option, right of first refusal, agreement, limitation on such Shareholder’s
voting rights, charge or other encumbrance of any nature whatsoever (“Encumbrance”) with respect to the Common
Stock or Other Securities, directly or indirectly, initiate, solicit or encourage any person to take actions which could reasonably
be expected to lead to the occurrence of any of the foregoing; provided, however, that any such Shareholder may
assign, sell or transfer any Common Stock or Other Securities provided that any such recipient of the Common Stock or Other Securities
has delivered to the Company and each Investor a written agreement in a form reasonably satisfactory to the Investors that the
recipient shall be bound by, and the Common Stock and/or Other Securities so transferred, assigned or sold shall remain subject
to this Agreement.

 

SECTION
3.02.Company Cooperation. The Company hereby covenants and agrees that it will not, and such Shareholder irrevocably
and unconditionally acknowledges and agrees that the Company will not (and waives any rights against the Company in relation thereto),
recognize any Encumbrance or agreement on any of the Common Stock or Other Securities subject to this Agreement unless the provisions
of Section 3.01 have been complied with. The Company agrees to use its reasonable best efforts to ensure that at any time in which
any Stockholder Approval is required pursuant to Section 4(p) of the Securities Purchase Agreement, it will cause holders of Common
Stock or Other Securities representing the percentage of outstanding capital stock required to vote in favor of the Transaction
in order for the Company to comply with its obligations under Section 4(p) of the Securities Purchase Agreement to become party
to and bound by the terms and conditions of this Agreement and the Common Stock and Other Securities held by such holders to be
subject to the terms and conditions of this Agreement. 

 

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Article
IV

MISCELLANEOUS

 

SECTION
4.01.Further Assurances. Each Shareholder will execute and deliver such further documents and instruments and take
all further action as may be reasonably necessary in order to consummate the transactions contemplated hereby.

 

SECTION
4.02.Specific Performance. The parties hereto agree that irreparable damage would occur in the event any provision
of this Agreement was not performed in accordance with the terms hereof and that any Investor (without being joined by any other
Investor) shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or in equity.
Any Investor shall be entitled to its reasonable attorneys’ fees in any action brought to enforce this Agreement in which
it is the prevailing party.

 

SECTION
4.03.Entire Agreement. This Agreement constitutes the entire agreement among the Company and the Shareholders with
respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and oral, among the
Company and the Shareholders with respect to the subject matter hereof.

 

SECTION
4.04.Amendment. The provisions of this Agreement may not be amended or waived, nor may this Agreement be terminated
by the Company other than pursuant to the provisions of Section 4.07.

 

SECTION
4.05.Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or
unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable
shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability
of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so
modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof
and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

SECTION
4.06.Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of New York. The parties hereby agree that all actions or proceedings arising directly
or indirectly from or in connection with this Agreement shall be litigated only in the Supreme Court of the State of New York
or the United States District Court for the Southern District of New York located in New York County, New York. The parties consent
to the jurisdiction and venue of the foregoing courts and consent that any process or notice of motion or other application to
any of said courts or a judge thereof may be served inside or outside the State of New York or the Southern District of New York
by registered mail, return receipt requested, directed to the party being served at its address set forth on the signature ages
to this Agreement (and service so made shall be deemed complete three (3) days after the same has been posted as aforesaid) or
by personal service or in such other manner as may be permissible under the rules of said courts. Each of the Company and each
Shareholder irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the
laying of the venue of any such suit, action, or proceeding brought in such a court and any claim that suit, action, or proceeding
has been brought in an inconvenient forum. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

SECTION
4.07.Termination. This Agreement shall terminate immediately following the occurrence of the Stockholder Approval.

 

[Signature
Page Follows]

 

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IN
WITNESS WHEREOF, each Shareholder and the Company has duly executed this Agreement.

 

	 	THE
    COMPANY:
	 	 
	 	DIGITAL
    ALLY, INC.

 

	 	By:	 
	 	Name:	Stanton E. Ross
	 	Title:	Chairman, CEO & President
	Dated: August 25, 2014	 	 

 

	 	Address:	Digital Ally, Inc.
	 	 	9705 Loiret Blvd.
	 	 	Lenexa, KS 66219

 

    	 

    	 

    

 

	Dated:
    August 25, 2014	SHAREHOLDERS:
	 	 
	 	 
	 	Stanton
    E. Ross
	 	 
	 	 
	 	Thomas
    J. Heckman
	 	 
	 	 
	 	Leroy C.
    Richie
	 	 
	 	 
	 	Elliot M.
    Kaplan
	 	 
	 	 
	 	Daniel
    F. Hutchins

 

    	 

    	 

    

 

APPENDIX
A

 

	Shareholder	 	Common Stock 
 Owned	 	 	Percentage of Stock Outstanding	 	 	Voting Percentage 
 of Stock
 Outstanding	 
	Stanton E. Ross	 	 	85,145	 	 	 	3.1	%	 	 	3.1	%
	Thomas J. Heckman	 	 	85,395	 	 	 	3.1	%	 	 	3.1	%
	Leroy C. Richie	 	 	49,594	 	 	 	1.8	%	 	 	1.8	%
	Elliot M. Kaplan	 	 	44,312	 	 	 	1.8	%	 	 	1.8	%
	Daniel F. Hutchins	 	 	29,950	 	 	 	1.1	%	 	 	1.1	%Exhibit 10.59

 

DIGITAL ALLY, INC.

 

August [__], 2014

 

First American Stock Transfer

4747 North 7th St., Suite 170

Phoenix, AZ 85014

 

  Re:   Digital Ally, Inc. - Lock-Up Agreement

 

Dear Sirs:

 

This Lock-Up Agreement
is being delivered to you in connection with the Securities Purchase Agreement (the “Purchase Agreement”), dated
as of August 25, 2014 by and among Digital Ally, Inc. (the “Company”) and the investors party thereto (the “Buyers”),
with respect to the issuance of (i) senior secured convertible notes of the Company (the “Notes”) pursuant to
which shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) may be issued
and (ii) warrants (the “Warrants”) which Warrants will be exercisable to purchase Common Stock.
Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase
Agreement.

 

In order to induce the
Buyers to enter into the Purchase Agreement, the undersigned agrees that, commencing on the date hereof and ending on the date
the Notes are no longer outstanding (the “Lock-Up
Period”), the undersigned will not, and will cause all affiliates (as defined in Rule 144 promulgated under the
Securities Act of 1933, as amended) of the undersigned or any person in privity with the undersigned or any affiliate of the undersigned
not to, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase,
make any short sale or otherwise dispose of or agree to dispose of, directly or indirectly, any
shares of Common Stock or Common Stock
Equivalents, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the
meaning of Section 16 of the Securities and Exchange Act of 1934, as amended and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder with respect to any shares of Common Stock
or Common Stock Equivalents owned directly by the undersigned (including holding as
a custodian) or with respect to which the undersigned has beneficial ownership within the rules and regulations of the Securities
and Exchange Commission (collectively, the “Undersigned’s Shares”), or (ii) enter into any swap
or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any
of the Undersigned’s Shares, whether any such transaction described in clause (i) or (ii) above is to be settled by
delivery of shares of Common Stock or other securities, in cash or otherwise, (iii) make any demand for or exercise any right or
cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of
Common Stock or Common Stock Equivalents
or (iv) publicly disclose the intention to do any of the foregoing.

 

The
foregoing restriction is expressly agreed to preclude the undersigned, and any affiliate of the undersigned and any person
in privity with the undersigned or any affiliate of the undersigned, from engaging in any
hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition
of the Undersigned’s Shares even if the Undersigned’s Shares would be disposed of by someone other than the undersigned.
Such prohibited hedging or other transactions would include, without limitation, any short sale or any purchase, sale or grant
of any right (including, without limitation, any put or call option) with respect to any of the Undersigned’s Shares or with
respect to any security that includes, relates to, or derives any significant part of its value from the Undersigned’s Shares.

 

    	 

    	 

    

 

Notwithstanding
the foregoing, the undersigned may transfer the Undersigned’s Shares (i) as a bona fide gift or gifts, provided that
the donee or donees thereof agree to be bound in writing by the restrictions set forth herein, (ii) to any trust for the direct
or indirect benefit of the undersigned or the immediate family of the undersigned, provided that the trustee of the trust agrees
to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition
for value or (iii) up to the Release Percentage per month of the Undersigned’s Shares as of the Closing Date to any third
party. For purposes of this Lock-Up Agreement, (x) “immediate family” shall mean any relationship by blood,
marriage or adoption, not more remote than first cousin and (y) “Release Percentage” means, initially, zero
percent (0%), and after the date that is six (6) months immediately following the Closing Date, ten percent (10%). The undersigned
now has, and, except as contemplated by the immediately preceding sentence, for the duration of this Lock-Up Agreement will have,
good and marketable title to the Undersigned’s Shares, free and clear of all liens, encumbrances, and claims whatsoever.
The undersigned also agrees and consents to the entry of stop transfer instructions with the Company’s transfer agent (the
“Transfer Agent”) and registrar against the transfer of the Undersigned’s Shares except in compliance
with the foregoing restrictions.

 

In order to enforce this
covenant, the Company shall impose irrevocable stop-transfer instructions preventing the Transfer Agent from effecting any actions
in violation of this Lock-Up Agreement.

 

The undersigned acknowledges
that the execution, delivery and performance of this Lock-Up Agreement is a material inducement to each Buyer to complete the transactions
contemplated by the Purchase Agreement and that the Company shall be entitled to specific performance of the undersigned’s
obligations hereunder. The undersigned hereby represents that the undersigned has the power and authority to execute, deliver and
perform this Lock-Up Agreement, that the undersigned has received adequate consideration therefor and that the undersigned will
indirectly benefit from the closing of the transactions contemplated by the Purchase Agreement.

 

The
undersigned understands and agrees that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned’s
heirs, legal representatives, successors, and assigns.

 

This
Lock-Up Agreement may be executed in two counterparts, each of which shall be deemed an original but both of which shall be considered
one and the same instrument.

 

This
Lock-Up Agreement will be governed by and construed in accordance with the laws of the State of New York, without giving effect
to any choice of law or conflicting provision or rule (whether of the State of New York, or any other jurisdiction) that would
cause the laws of any jurisdiction other than the State of New York to be applied. In furtherance of the foregoing, the internal
laws of the State of New York will control the interpretation and construction of this Lock-Up Agreement, even if under such jurisdiction’s
choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

 

[Remainder of page intentionally left blank]

 

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	 	Very truly yours,
	 	 
	 	 
	 	Exact Name of Shareholder
	 	 
	 	 
	 	Authorized Signature
	 	 
	 	 
	 	Title

 

	Agreed to and Acknowledged:	 
	 	 
	DIGITAL ALLY, INC.	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

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