Company: KAVL
Filing Date: 2025-06-16
Form Type: S-3
Source: 0001731122-25-000885
Chunk: 46

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-16
Form: S-3
Chunk 46
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 income, gain, or loss for U.S. federal income tax purposes as a result of covenant defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner, and at the same times as would have been the case if covenant defeasance had not occurred; and |

| ● | certain other conditions described in the indenture are satisfied. |

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If we fail to comply with our remaining obligations
under the indenture and applicable supplemental indenture after a covenant defeasance of the indenture and applicable supplemental indenture,
and the debt securities are declared due and payable because of the occurrence of any undefeased event of default, the amount of money
and/or U.S. Government Obligations and/or Foreign Government Obligations on deposit with the trustee could be insufficient to pay amounts
due under the debt securities of the affected series at the time of acceleration. We will, however, remain liable in respect of these
payments.

The term “U.S. Government Obligations”
as used in the above discussion means securities that are direct obligations of or non-callable obligations guaranteed by the United States
of America for the payment of which obligation or guarantee the full faith and credit of the United States of America is pledged.

The term “Foreign Government Obligations”
as used in the above discussion means, with respect to debt securities of any series that are denominated in a currency other than U.S.
dollars (1) direct obligations of the government that issued or caused to be issued such currency for the payment of which obligations
its full faith and credit is pledged or (2) obligations of a person controlled or supervised by or acting as an agent or instrumentality
of such government the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by that government,
which in either case under clauses (1) or (2), are not callable or redeemable at the option of the issuer.

Regarding the Trustee

We will identify the trustee with respect to any series
of debt securities in the prospectus supplement relating to the applicable debt securities. You should note that if the trustee becomes
a creditor of our company, the indenture and the Trust Indenture Act of 1939 limit the rights of the trustee to obtain payment of claims
in certain cases, or to realize on certain property received in respect of any such claim, as security or otherwise. The trustee and its
affiliates may engage