SEC Contract Filing

Filing Date: 2024-12-23

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>6
<FILENAME>ea022576501ex10-3_firefly.htm
<DESCRIPTION>SECURITY AGREEMENT, DATED DECEMBER 20, 2024, AMONG FIREFLY NEUROSCIENCE, INC., FIREFLY NEUROSCIENCE LTD., FIREFLY NEUROSCIENCE CANADA, ELMINDA 2022 INC., ELMINDA CANADA INC., AND HELENA SPECIAL OPPORTUNITIES LLC
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<P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit 10.3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This SECURITY AGREEMENT, dated
as of December 20, 2024 (this &ldquo;<U>Agreement</U>&rdquo;), is among FIREFLY NEUROSCIENCE, INC., a Delaware corporation (the &ldquo;<U>Company</U>&rdquo;),
those Subsidiaries of the Company signatory hereto (such subsidiaries, the &ldquo;<U>Guarantors</U>&rdquo; and together with the Company,
the &ldquo;<U>Debtors</U>&rdquo;) and the holders of the Company&rsquo;s convertible promissory notes (collectively, the &ldquo;<U>Notes</U>&rdquo;)
signatory hereto, their endorsees, transferees and assigns (collectively, the &ldquo;<U>Secured Parties</U>&rdquo;).</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: center"><B>W I T N E S S E T H:</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, pursuant to the Purchase
Agreement, the Secured Parties have severally agreed to purchase Notes from the Company;</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">WHEREAS, pursuant to a certain
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</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">WHEREAS, in order to induce
the Secured Parties to purchase 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 the assets 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.</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 agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto hereby agree 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.&nbsp;<B>Certain
Definitions</B>. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used but not
otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as &ldquo;account&rdquo;, &ldquo;chattel paper&rdquo;,
&ldquo;commercial tort claim&rdquo;, &ldquo;deposit account&rdquo;, &ldquo;document&rdquo;, &ldquo;equipment&rdquo;, &ldquo;fixtures&rdquo;,
&ldquo;general intangibles&rdquo;, &ldquo;goods&rdquo;, &ldquo;instruments&rdquo;, &ldquo;inventory&rdquo;, &ldquo;investment property&rdquo;,
&ldquo;letter-of-credit rights&rdquo;, &ldquo;proceeds&rdquo; and &ldquo;supporting obligations&rdquo;) shall have the respective meanings
given such terms in Article 9 of the UCC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&ldquo;<U>Collateral</U>&rdquo;
means the collateral in which the Secured Parties are granted a security interest by this Agreement and which shall include the
following personal property of the Debtors, whether presently owned or existing or hereafter acquired or coming into existence,
wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds,
products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of
insurance covering the same and of any tort claims in connection therewith, and all dividends, interest, cash, notes, securities,
equity interest or other property at any time and from time to time acquired, receivable or otherwise distributed in respect of, or
in exchange for, any or all of the Pledged Securities (as defined below):</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; mar