Company: KAVL
Filing Date: 2025-08-04
Form Type: S-3/A
Source: 0001731122-25-001067
Chunk: 16

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-04
Form: S-3/A
Chunk 16
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 in the current year.

On October 25, 2024, we entered into a letter agreement
with Bidi, pursuant to which we (i) agreed with Bidi that “Products” as defined in the A&R Distribution Agreement means
and includes (and has always meant and included) only the following items, to the exclusion of all other items and products (including,
without limitation, the Excluded Products): (a) the “Bidi Stick”, which is an electronic nicotine delivery system, or “e-cigarette”,
at 6% nicotine (including all available flavors) in the versions previously sold by Manufacturer to Distributor; and (b) acrylic displays
preloaded with one hundred (100) such “Bidi Sticks;” (ii) waived and fully relinquished: (a) our Right of First Offer, Right
of First Refusal, and all other rights (if any) with respect to all Future Products (whether previously introduced, or introduced hereafter,
by Manufacturer) pursuant to the Distribution Agreement; and (b) all of its rights with respect to a Bona Fide Offer pursuant to Section
4.F of the A&R Distribution Agreement; (iii) released Bidi from all claims arising out of events that occurred prior to the Effective
Date of the A&R Distribution Agreement and (iv) acknowledged the existence of that certain matter styled In the Matter of Certain
Disposable Vaporizer Devices and Components Thereof, Inv. No. 337-TA-1410 before the United States International Trade Commission, and
agreed that neither said matter not any outcome thereof or resolution resulting therefrom that affects Bidi shall constitute a breach
or other default by Bidi under the A&R Distribution Agreement.

<div align='center'>6</div>

A key third party collaborator of ours was QuikfillRx,
a Florida limited liability company which did business as “Kaival Marketing Services” to reflect its contributions to our
company. QuikfillRx provided us with certain services and support relating to sales management, website development and design, graphics,
content, social media, management and analytics, and market and other research. QuikfillRx provided these services to us pursuant to a
Services Agreement, most recently amended on November 9, 2022, which had a term ending on October 31, 2025 (subject to potential one-year
extensions) and pursuant to which QuikfillRx received monthly cash compensation and was granted certain equity compensation in the form
of