SEC Contract Filing

Filing Date: 2019-08-05

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>6
<FILENAME>ex10-2.htm
<TEXT>
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<P STYLE="margin-top: 0; margin-bottom: 0; margin-left: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin-top: 0; margin-bottom: 0; margin-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
10.2</B></FONT></P>

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<P STYLE="margin-top: 0; margin-bottom: 0; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SECURITY
AGREEMENT</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
SECURITY AGREEMENT, dated as of August 5, 2019 (this &ldquo;<U>Agreement</U>&rdquo;), is among Digital Ally, Inc., a Nevada
corporation (the &ldquo;<U>Company</U>&rdquo;), any subsidiary and affiliate of the Company that is a signatory hereto either
now or joined in the future (such subsidiaries, the &ldquo;<U>Guarantors</U>&rdquo; and, together with the Company, the &ldquo;<U>Debtors</U>&rdquo;)
and &hellip;&hellip;&hellip;..&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , as a secured party and Agent, and the other secured
parties signatory hereto their endorsees, transferees and assigns (collectively, the &ldquo;<U>Secured Parties</U>&rdquo;).</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>W
I T N E S S E T H:</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHEREAS,
pursuant to that certain Securities Purchase Agreement, dated as of even date herewith (the &ldquo;<U>Purchase Agreement</U>&rdquo;),
the Secured Parties has agreed to fund the Company with respect to the issuance of that certain Senior Secured Convertible Note,
<FONT STYLE="background-color: white">subject to the terms therein, Twelve (12) months from its date of issuance, issued by the
Company to the Secured Parties (the &ldquo;<U>Note</U>&rdquo;); and together with the Note, any other securities that may be issued
from time-to-time (the &ldquo;<U>Securities</U>&rdquo;).</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHEREAS,
pursuant to a certain Subsidiary Guarantee, dated as of the date hereof (the &ldquo;<U>Guarantee</U>&rdquo;), the Guarantors have
jointly and severally agreed to guarantee and act as surety for payment of such Notes; and</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHEREAS,
in order to induce the Secured Parties to extend the loans evidenced by the Notes, each Debtor has agreed to execute and deliver
to the Secured Parties this Agreement and to grant the Secured Parties, <U>pari passu</U> with each other Secured Party and through
the Agent (as defined in Section 18 hereof), a security interest in certain property of such Debtor to secure the prompt payment,
performance and discharge in full of all of the Company&rsquo;s obligations under the Notes and the Guarantors&rsquo; obligations
under the Guarantee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHEREAS,
each of the parties hereto acknowledges and agrees that the rights granted hereunder by the Company with respect to certain collateral
are (a) second and subordinate to the security interest in the assets of the Company granted by the Company to Brickell Key Investments
LP