Company: SNBH
Filing Date: 2025-03-31
Form Type: 8-K/A
Source: 0001731122-25-000490
Chunk: 3

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-03-31
Form: 8-K/A
Chunk 3
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600,000 of Acquisition
Credits would be issued.

Issuances of the Acquisition Credits to the Shareholders will generally
commence after the initial two (2) quarters of the Company’s revenue are disclosed in the SNBH periodic reports filed with the Securities
and Exchange Commission (“SEC”) on Form 10-Q and 10-K, as applicable, following the Closing, although any asset purchases
will be compensated by Acquisition Credits immediately upon acquisition.

The number of Acquisition Credits to be issued to the Shareholders each
quarter will be determined by calculating the three (3) above earnout criteria methods. The method which yields the largest number of
Acquisition Credits will be utilized for the issuance of the Acquisition Credits to the Shareholders within the applicable quarterly period.
The Shareholders must designate any designees or assignees prior to the end of the quarter and must provide documentation sufficient to
determine whether or not the designee’s or assignee’s credits are to be aggregated with any other recipient of credits for
the purpose of determining the Maximum Issuance (as defined below).

The Acquisition Credits earnout period will last for up to five (5) years,
provided, that, in order for Acquisition Credits to be issued to the Shareholders in a given year, the Company’s revenue, with a
minimum of 5% EBITDA in such year, must increase over the previous year, and the number of Acquisition Credits to be issued will be based
upon such increase. At the end of each fiscal quarter of the Company, the Company will calculate the Acquisition Credits to be issued
to the Shareholders using the three above earnout criteria methods. The method resulting in the largest number of Acquisition Credits
will be selected for each quarter’s issuance of the Acquisition Credits to the Shareholders. The applicable number of Acquisition
Credits shall be transferred to the Shareholders accordingly, subject to the Maximum Issuance.

Acquisition credits may be converted into shares of common stock of the
Company only after a six-month holding period. The conversion price for the credits will be the average of the 30-day closing price of
the Company’s shares for the 30-day period immediately preceding any notice of conversion.

The number of shares issued by the conversion of Acquisition Credits that
may be acquired by the Shareholders pursuant to the Earnout Schedule will be limited to the extent necessary to ensure that, following
such earnout and subsequent conversion, the total number of shares of common stock then beneficially owned by such Shareholder and their