Material Agreement Form 8 K

Item 1.01 Entry into a Material Definitive Agreement.

On June 24, 2024 (the "Effective Date"), Ammo, Inc. ("AMMO") entered into a Confidential Settlement Agreement and Mutual General Release (the "Settlement Agreement") with Triton Value Partners, LLC, Donald Gasgarth, Paul Freischlag, Jr., Jeff Zwitter (the "Plaintiffs," and together with the Defendants and AMMO, the "Parties" or, individually, "Party"), and Steven Urvan and TVP Investments LLC (the "Urvan Defendants") and Gunbroker.com, LLC, IA TECH, LLC, and GB Investments, Inc. (the "Gunbroker Defendants," and collectively with the Urvan Defendants, the "Defendants") to fully resolve and settle all disputes and claims related to the litigation between the Defendants and Plaintiffs captioned Triton Value Partners, LLC et al. v. TVP Investments, LLC et al., Cobb County Superior Court, CAFN 18104869 (the "Action").

Pursuant to the Settlement Agreement, the GunBroker Defendants agreed to pay the Plaintiffs $8,000,000 (the "Settlement Amount") in a single lump sum payment. AMMO agreed to tender the Settlement Amount to an escrow agent on behalf of the GunBroker Defendants within 45 days of the Settlement Agreement's execution. Within five business days of the receipt of the Settlement Amount from the escrow agent, the Plaintiffs agreed to dismiss the Action with prejudice, and the Urvan Defendants agreed to dismiss all counterclaims against the Plaintiffs with prejudice.

As previously disclosed, on April 30, 2021, AMMO, Speedlight Group I, LLC, a wholly owned subsidiary of AMMO, Gemini Direct Investments, LLC, and Steven Urvan ("Urvan") entered into an Agreement and Plan of Merger (the "Merger Agreement"). Pursuant to the Merger Agreement, Urvan has the exclusive right to settle the Action on behalf of all Defendants and Urvan is obligated to indemnify AMMO for certain liabilities, including certain liabilities incurred in connection with the Action.

In connection with the Merger Agreement, on April 30, 2021, AMMO and Urvan entered into a Pledge and Escrow Agreement (the "Pledge and Escrow Agreement"), pursuant to which ten stock certificates in the name of Urvan, with each certificate representing $2.8 million worth of AMMO shares of common stock as of the date of the Pledge and Escrow Agreement (the "Pledged Securities") were placed in escrow pending resolution of the Action. Pursuant to the Settlement Agreement, a portion of the Pledged Securities in the form of a stock certificate for 2,857,143 shares ("Stock Certificate") shall be sent to AMMO's transfer agent for cancellation on the date and at the time the escrow agent releases the Settlement Amount to the Plaintiffs.

Pursuant to the Settlement Agreement, at Urvan's sole and absolute discretion, he may elect to make the Settlement Payment instead of surrendering the Stock Certificate for cancelation. If Urvan elects to make the Settlement Payment, AMMO agrees to release the Stock Certificate to Urvan, subject to certain conditions and limitations.

Pursuant to the Settlement Agreement, each of the Plaintiffs and the Defendants provides mutual releases of all claims as of the Effective Date, arising from any allegations set forth in the Action. Notwithstanding the foregoing, AMMO and the Gunbroker Defendants do not release any claims asserted against Urvan, and Urvan does not release any claims asserted against AMMO, the Gunbroker Defendants or any individual or entity related to or affiliated with AMMO.

The foregoing summary is qualified in its entirety by reference to the Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by this reference.