Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 137

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 137
---
, for a further description of the awards and the underlying assumptions utilized to determine the amount of grant date fair value related to such grants.

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.

| 86 |

<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