Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 80

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 80
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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 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 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 adverse change in the executive’s status as an executive or other key employee of the Company, including without limitation, a material adverse change in the executive’s position, authority, or aggregate duties or responsibilities; (ii) any adverse change in the executive’s base salary, target bonus or benefits; or (iii) a request by the Company to materially change the executive’s geographic work location.

“Cause” means (i) the executive has acted in bad faith and to the detriment of the Company; (ii) the executive has refused or failed to act in accordance with any specific lawful and material direction or order of his or her supervisor; (iii) the executive