Company: KAVL
Filing Date: 2025-06-16
Form Type: S-3
Source: 0001731122-25-000885
Chunk: 14

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-16
Form: S-3
Chunk 14
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 would likely not turn profitable. They confirmed that this decision would not affect the commercialization activities
under the licensing agreement of the 5ml and 18ml vaping products.

KBI License Agreements

On June 10, 2022, Bidi entered into a License Agreement
(the “License Agreement:) with KBI, pursuant to which KBI has the exclusive irrevocable license to use Bidi’s licensed intellectual
property to the extent necessary for KBI to fulfill its obligations set forth in the PMI License Agreement. Such irrevocable license includes:
(i) the right of KBI to grant sub-licenses to PMPSA under the PMI License Agreement for the express purposes set forth in the PMI License
Agreement, but for no other purpose; (ii) the right of KBI to grant to PMPSA the right to grant sub-sub-licenses in the manner set forth
in the PMI License Agreement, but for no other purpose; and (iii) certain branding rights to the extent (but only to the extent) necessary
to permit KBI to perform its obligations to PMPSA as set forth in the PMI License Agreement.

<div align='center'>5</div>

Pursuant to the License Agreement, if at any time,
KBI receives any license of PMPSA intellectual property from PMPSA or any of its affiliates in the manner contemplated by the PMI License
Agreement, KBI will grant Bidi an irrevocable sub-license of all right, title, and interest of KBI in and to that PMPSA intellectual property.
In addition, Bidi and KBI agree that any amount payable and all net royalties payable to KBI under the PMI License Agreement will be apportioned
equally between Bidi and KBI in a manner such that each will ultimately receive fifty percent (50%) thereof.

The License Agreement contains customary representations,
warranties, covenants, and indemnification provisions.

Bidi Vapor, LLC Distribution Agreement

On March 9, 2020, we entered into an exclusive distribution agreement (the “Distribution Agreement”) with our affiliate Bidi, which Distribution Agreement was amended and restated on May 21, 2020, April 20, 2021,June 10, 2022, andNovember 17, 2022 (collectively, the “A&R Distribution Agreement”). Pursuant to the A&R Distribution Agreement, Bidi granted us an exclusive worldwide