Company: DGLY
Filing Date: 2025-11-12
Form Type: PRER14A
Source: 0001493152-25-021783
Chunk: 30

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: PRER14A
Chunk 30
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 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.

| 18 |

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 of Directors is replaced and/or dismissed by the stockholders of the Company without the recommendation of or nomination by the Company’s current Board of Directors; (iv) the Company’s Chief Executive Officer the CEO is replaced and/or dismissed by stockholders without the approval of the Board of Directors; or (v) the Company sells, transfers or otherwise disposes of all or substantially all of the consolidated assets of the Company and the Company does not own stock in the purchaser or purchasers having more than 50% of the voting power of the entity owning all or substantially all of the consolidated assets of the Company after such purchase.

“Good Reason” means either (i) a material