Material Agreement Form 8 K

Item 1.01. Entry into a Material Definitive Agreement.

On August 2, 2024, Digital Ally, Inc. (the "Company") entered into a purchase and sale agreement (the "Agreement") with Serenity Now, LLC, a Kansas limited liability company (the "Buyer") to sell a commercial office building and associated property located at 14001 Marshall Drive, Lenexa, KS (the "Office Building"). The Buyer has no prior material relationship with the Company beyond the Agreement.

Pursuant to the Agreement, the Buyer has agreed to acquire the Property (as defined in the Agreement) for five million nine hundred thousand and 00/100 dollars ($5,900,000.00), exclusive of closing costs.

The Agreement includes customary representations and warranties, covenants and closing conditions, including, without limitation, assignment and assumption of existing leases and performance of all the covenants. Pursuant to the terms of the Agreement, during the Inspection Period (as defined in the Agreement), the Buyer is entitled to conduct inspections and review title and survey matters. The Company will lease its premises in the Office Building from the Buyer for six months after the closing of the Agreement for $240,000.

The foregoing summary of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of each such document, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.