Document:

dgly_ex1022.htm

EXHIBIT 10.22

 

 

Prepared as of                                                                                                           

February 28, 2011

LOAN MODIFICATION OR RENEWAL AGREEMENT

Note No 8126863

Date of this Modification/ Renewal: March 2, 2011   Original Note Date: _February 13, 2009

Original Note Amount: $2,500,000.00    Principal Balance as of this Date: $1,500,000.00

Name (s) of Borrower (s): DIGITAL ALLY, INC.

Address of Borrower (s): 8000 W. 110th, Suite 200

                                        Overland Park, KS 66210

The foregoing Note, which is payable by the Borrower (s) to ENTERPRISE BANK & TRUST (the "Bank") is hereby modified or renewed effective as of the date of this Agreement on the following terms:

The amount of this revolving line of credit is hereby DECREASED to $1,711,348.00

This Note shall mature, and all outstanding and unpaid principal and accrued interest shall be due and payable without further notice or demand on June 12, 2011.

Except as specifically modified hereby, all of the terms of the Note shall remain in full force and effect. Borrower confirms, ratifies and reaffirms all obligations of any nature whatsoever to Bank arising under or evidenced by the Note and all obligations and agreements set forth in all credit agreements, loan agreements, guaranties, security agreements, mortgages, deeds of trust, and all other instruments, agreements and documents executed in connection with the Note (collectively, the "Related Documents"), as such obligations are renewed and modified hereby. Borrower further represents and warrants to Bank that the obligation of Borrower to repay the Note, together with all interest thereon, and to perform the obligations and agreements set forth in the Related Documents is absolute and unconditional, and there exists no right of set off or recoupment, counterclaim or defense of any nature whatsoever to the payment, performance or enforceability of the Note and the Related Documents. This is a renewal and / or modification of the Note and not a replacement or novation of the Note. If for any reason this Agreement is invalid, the Note shall be enforceable according to the original terms as heretofore amended. Any term of the Note that is inconsistent with any modification contained herein shall be deemed to be modified to be consistent with the modifications contained in this Agreement. If there is any loan agreement, security agreement, pledge agreement or any other document or collateral instrument that applies to the Note, all such documents are amended hereby to conform to the terms of this Agreement.

 

	ENTERPRISE BANK & TRUST 	 	Digital Ally, Inc.	 
	 	 	 	 	 	 
	By:	
 /s/ Mark McCaskill  

	 	By:	
/s/ Stanton E. Ross

	 
	 	
Mark McCaskill 

	 	 	
Stanton E. Ross

	 
	 	
Senior Vice President 

	 	 	
Chairman and CEO

	 

 

  

1

  

SECOND AMENDMENT TO LOAN AGREEMENT

This Second Amendment to Loan Agreement ("Second Amendment") dated March 2, 2011, references and amends a certain Loan Agreement dated as of February 13, 2008 ("Loan Agreement") between Enterprise Bank & Trust ("Lender") and Digital Ally, Inc. ("Borrower'').

RECITALS

	
A.  

	
Lender and Borrower have previously entered into the above referenced Loan Agreement together with a First Amendment thereto.

	
B.  

	
Lender and Borrower wish to modify and amend the terms and conditions of the Loan Agreement as hereinafter provided.

NOW THEREFORE, in consideration of the covenants and mutual agreements of the parties contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

	
1.  

	
The following is hereby deleted in its entirety:

	
  

	
Other Requirements. Tangible Net Worth

	
  

	
Borrower shall maintain a minimum Tangible Net Worth of not less than

	
  

	
 $15,000,000.00. This covenant will be tested on a quarterly basis.

	
  

	
The following is hereby substituted for the above deletion:

	
  

	
Other Requirements. Tangible Net Worth

	
  

	
Borrower shall maintain a minimum Tangible Net Worth of not less than

	
  

	
 $10,000,000.00. This covenant will be tested on a quarterly basis.

	
2.  

	
The following is hereby deleted in its entirety:

	
  

	
Borrowing Base. The words "Borrowing Base" mean as determined by Lender from time to time, the lesser of (1) $2,500,000.00 or (2) the sum of (a) 75.000% of the aggregate amount of Eligible Accounts, plus (b) 50.000% of the aggregate amount of Eligible Inventory.

 

  

2

  

 

	
  

	
The following is hereby substituted for the above deletion:

	
  

	
Borrowing Base.  The words “Borrowing Base” mean as determined by Lender from time to time, the lesser of (1) $1,711,348.00 or (2) the sum of

	
  

	
(a) 75.000% of the aggregate amount of Eligible Accounts, plus (b) 50.000% of the aggregate amount of Eligible Inventory.

	
3.  

	
The Loan Agreement as amended hereby shall continue in full force and effect until such time as all of Borrower's obligations and indebtedness to Bank have been paid in full, including principal, interest. costs and expenses.

	
4.  

	
Borrower confirms and acknowledges to Bank that (i) all of the representations, warranties and covenants contained in the Loan Agreement as of the date of this Second Amendment are true and correct in all material respects and (ii) there now exists no event of default under the Loan Agreement or any event or omission that with the giving of notice or the passage of time would constitute an event of default under the Loan Agreement.

	
5.  

	
 Except as expressly set forth in this Second Amendment, all terms and conditions of the Loan Agreement and all other instruments, agreements and documents executed in connection with the Loan Agreement and the Notes shall remain unmodified and in full force and effect.

 

  

3

  

 

IN WITNESS WHEREOF, the undersigned have executed this Second Amendment as of the date and year first above written.

 

	ENTERPRISE BANK & TRUST 	 	 Digital Ally, Inc.	 
	 	 	 	 	 	 
	By:	
 /s/ Mark McCaskill  

	 	By:	
/s/ Stanton E. Ross

	 
	 	
Mark McCaskill 

	 	 	
Stanton E. Ross

	 
	 	
Senior Vice President 

	 	 	
Chairman and CEO

	 

 

 

4hplf_ex1015.htm

Exhibit 10.15

 

Harborview Capital Management, LLC

850 Third Ave, Suite 1801

New York, NY 10022

Telephone: 646.218.1400

Facsimile: 646.218.1401

November 1, 2010

HepaLife Technologies, Inc.

850 Third Avenue, Suite 1801

New York, NY 10022

Attention:  Steven C. Berger

Re:           Executive Office License Agreement

Dear Mr. Berger:

This will confirm our agreement with you regarding the use of the office space of Harborview Capital Management, LLC (“Haborview”) in Suite 1801 on the 18th Floor of 850 Third Avenue, New York, New York 10022 (the “Premises”), by HepaLife Technologies, Inc. (the “Company”) and its subsidiaries noted on Exhibit A hereto as the same may from time to time be amended (the “HepaLife Subsidiaries”), including but not limited to AquaMed Technologies, Inc. on the following terms and conditions.  The Company together with the HepaLife Subsidiaries are herein collectively referred to as “HepaLife.”

 

1.           The effective date of this Agreement is November 1, 2010 (the “Effective Date”).  This Agreement may be terminated at any time by either Harborview or HepaLife on 30 days prior written notice to the other.  Notice hereunder to the Company shall constitute notice to any HepaLife Subsidiaries then using the Office.  Upon termination of this Agreement HepaLife shall remove any of its property from and surrender the Licensed Offices, as defined below, to Harborview in good order and condition, ordinary wear and tear and damage by any cause beyond HepaLife’s control excepted.  Notwithstanding the termination of this Agreement, HepaLife shall remain liable for all amounts payable by it hereunder, through the date of such termination.

 

2.           Harborview will have the right, from time to time, in its discretion, to designate the offices and secretarial stations (collectively, the “Licensed Offices”) to be used by HepaLife.

 

3.           On the first day of each and every calendar month during the term of this Agreement, commencing on November 1, 2010, HepaLife will pay Harborview an initial office license fee of $14,000.00 (such initial amount, as same may increase from time to time pursuant to the terms hereinafter set forth, the “License Fee”).  During the term of this Agreement, such amount shall increase annually on each succeeding anniversary of the Effective Date by an escalation amount equal to 3% of the then applicable License Fees.

 

In the event that Harborview is obligated to pay New York City commercial rent tax in respect of the License Fees under Agreement as a result of it not being able to deduct same on its commercial rent tax filings, you agree to reimburse Harborview for the amount of such tax.

 

 

  

  

  

 

 

4.           During the term of this Agreement Harborview will supply HepaLife with normal use of Harborview’s reception, kitchen, conference room facilities, Internet connectivity, telephone and will make available to you reasonable file and storage space.  Reasonable copy, telecopy and mailroom facilities will be available on an additional, reasonable charge basis, as mutually agreed upon by you and Harborview.  From time to time provided that copier and printer services for less than 1,000 pages per month shall be complimentary and amounts in excess thereof shall be billed at an amount sufficient to recover costs for paper and/or toner (in the event of exceptionally heavy use).

 

Hepalife will be responsible for coordinating and paying for the installation and set up for its computer, peripheral equipment, proprietary telephone line(s) and integration of such line(s) with Harborview’s system and for its personal office expenses, including, but not limited to line and toll charges, secretarial and messenger services and the costs of stationery and office supplies.

 

HepaLife agrees to coordinate its use of the conference facilities with Harborview’s needs and ensure that the conference room remains free of its papers, files and books at such times it is not actually using the room for conferences.

 

5.           This Agreement is subordinate to Harborview’s lease with its landlord with respect to the Premises and does not create a tenancy or any other interest in the Licensed Office or any other portion of the Premises.  Hepalife and the Hepalife Subsidiaries will (i) comply with all rules and regulations applicable to Harborview’s leasehold and (ii) indemnify Harborview against all risks involving the exercise of license hereunder.

 

 

  

  

  

 

Kindly confirm the foregoing arrangements by signing and returning the enclosed copy of this letter.

 

Very truly yours,

Harborview Capital Management, LLC

 

	 	 	 	 	 	 
	 By:	
 

	 	 	
 

	 
	 	 	 	 	 
	Name:	 	 	 	 
	 	 	 	 	 
	Title: 	 	 	 	 

 

So confirmed as of the date first above written:

 

	HepaLife Technologies, Inc.	 	
Each HepaLife Subsidiary

Listed on Exhibit A

 

By:  HepaLife Technologies, Inc.

 

	 
	 By:	
 

	 	By:	
 

	 
	 	 	 	 	 
	Name:	 	Name:	 
	 	 	 	 	 
	Title:	 	Title:

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