Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 137

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 137
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 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.

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<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 combined voting power of the surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization; (iii) a majority of the Board is replaced and/or dismissed by the stockholders of the Company without the recommendation of or nomination by the Company’s current Board; (iv) the Company’s Chief Executive Officer (the “CEO”) is replaced and/or dismissed by stockholders without the approval of the Board; or (v) the Company sells, transfers or otherwise disposes of all or substantially all of the