Company: DGLY
Filing Date: 2025-01-16
Form Type: S-1/A
Source: 0001493152-25-002490
Chunk: 41

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-16
Form: S-1/A
Chunk 41
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 awards and the underlying assumptions utilized to determine the amount of grant date fair value related to such grants.

| 24 |

Employment Contracts; Termination of Employment and Change-in-Control Arrangements

We do not have any employment agreements with any of our executive officers. However, on December 23, 2008, we entered into retention agreements with the following executive officers: Stanton E. Ross and Thomas J. Heckman. In April 2018 we amended these agreements.

Retention Agreements - Potential Payments upon Termination or Change of Control

The following table sets forth for each named executive officer potential post-employment payments and payments on a change in control and assumes that the triggering event took place on January 1, 2024 and that the amendments to the retention agreements of each person were in effect.

<div align='center'>Retention Agreement Compensation</div>

| Name              |     | Change                               
 in control                           
 payment due based   upon             
 successful completion of transaction |         |     | Severance           
 payment   due       
 based on            
 termination after   
 Change of   Control 
 occurs              |         |     | Total |           |
|:------------------|:----|:-------------------------------------|--------:|:----|:--------------------|--------:|:----|:------|----------:|
| Stanton E. Ross   |     | $                                    | 125,000 |     | $                   | 500,000 |     | $     |   625,000 |
| Thomas J. Heckman |     | $                                    | 115,000 |     | $                   | 460,000 |     | $     |   575,000 |
| Total             |     | $                                    | 240,000 |     | $                   | 960,000 |     | $     | 1,200,000 |

The retention agreements guarantee the executive officers’ specific payments and benefits upon a Change in Control of the Company. The retention agreements also provide for specified severance benefits if, after a Change in Control of the Company occurs, the executive officer voluntarily terminates employment for “Good Reason” or is involuntarily terminated without “Cause.”

Under the retention agreements, a “Change in Control” means (i) one party alone, or acting with others, has acquired or gained control over more than 50% of the voting shares of the Company; (ii) the Company merges or consolidates with or into another entity or completes any other corporate reorganization, if more than 50% of the