SEC Contract Filing

Filing Date: 2024-11-18

Document Content:
<DOCUMENT>
<TYPE>EX-10.12
<SEQUENCE>19
<FILENAME>ea022140801ex10-12_damon.htm
<DESCRIPTION>SECURITY AGREEMENT, DATED AS OF NOVEMBER 13, 2024, BY AND BETWEEN THE COMPANY AND BRAEBEACON HOLDINGS INC
<TEXT>
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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.12</B></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Security Agreement<BR>
<BR>
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-variant: small-caps">This
Security Agreement</FONT> (this &#8220;<B>Agreement</B>&#8221;), dated as of November 13, 2024, is executed by <FONT STYLE="font-variant: small-caps">Grafiti
Holding, Inc.</FONT>, a British Columbia corporation (&#8220;<B>Debtor</B>&#8221;), in favor of Braebeacon Holdings Inc., a corporation
incorporated pursuant to the laws of the Province of Ontario (&#8220;<B>Secured Party</B>&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A.&nbsp;Debtor
has issued to Secured Party a certain Secured Promissory Note of even date herewith, as may be amended from time to time, in the original
face amount of $8,385,000.00 (the &#8220;<B>Note</B>&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">B.&nbsp;In
order to induce Secured Party to extend the credit evidenced by the Note, Debtor has agreed to enter into this Agreement and to grant
Secured Party a security interest in the Collateral (as defined below).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in consideration
of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Debtor
hereby agrees with Secured Party as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;
</FONT><U>Definitions and Interpretation</U>. When used in this Agreement, the following terms have the following respective meanings:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#8220;<B>Collateral</B>&#8221;
has the meaning given to that term in Section 2 hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#8220;<B>Lien</B>&#8221; shall
mean, with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or other encumbrance in, of, or on such
property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional sale agreement,
capital lease or other title retention agreement, or any agreement to provide any of the foregoing, and the filing of any financing statement
or similar instrument under the PPSA or comparable law of any jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#8220;<B>Obligations</B>&#8221;
means (a) all loans, advances, future advances, debts, liabilities and obligations, howsoever arising, owed by Debtor to Secured Party
or any affiliate of Secured Party of every kind and description, now existing or hereafter arising, whether created by the Note, this
Agreement, the Purchase Agreement, any other Transaction Documents (as defined in the Purchase Agreement), any other promissory note issued
by Debtor in favor of Secured Party (or any affiliate of Secured Party), any modification or amendment to any of the foregoing, guaranty
of payment or other contract or by a quasi-contract, tort, statute or other operation of law, whether incurred or owed directly to Secured
Party or as an affiliate of Secured Party or acquired by Secured Party or an affiliate of Secured Party by purchase, pledge or otherwise,
(b) all costs and expenses, including attorneys&#8217; fees, incurred by Secured Party or any affiliate of Secured Party in connection
with the Note or in connection with the collection or enforcement of any portion of the indebtedness, liabilities or obligations described
in the foregoing clause (a), (c) the payment of all other sums, with interest thereon, advanced in accordance herewith to protect the
security of this Agreement, and (d) the performance of the covenants and agreements of Debtor contained in this Agreement and all other
Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#8220;<B>Permitted Liens</B>&#8221;
means (a) Liens for taxes not yet delinquent or Liens for ta