Company: SNBH
Filing Date: 2025-03-31
Form Type: 8-K/A
Source: 0001731122-25-000490
Chunk: 4

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-03-31
Form: 8-K/A
Chunk 4
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affiliates and any other persons whose beneficial ownership of the common stock would be aggregated with the Shareholder’s for purposes
of Section 13(d) of the Securities Exchange Act of 1934 (“1934 Act”), does not exceed 9.999% of the total number of issued
and outstanding shares of common stock (including for such purpose the shares of common stock issuable upon such earnout) (a “Maximum
Issuance”). For such purposes, beneficial ownership will be determined in accordance with Section 13(d) of the 1934 Act and the
rules and regulations promulgated thereunder. In the case where the amount of Acquisition Credits to be issued to a Shareholder, and then
converted into common stock by that Interestholder, would exceed the Maximum Issuance, then the Company will reserve that number of shares
in excess of the Maximum Issuance with its Transfer Agent (the “Reserve Shares”) and such Reserve Shares will be issued to
the Shareholder at such time that the issuance would not cause such Shareholder to exceed to the 9.999% ownership limit.

Concurrently with the Closing, Dante Jones will resign as an executive
officer and director of the Company; George Furlan will be appointed as interim chief executive officer, president and chief financial
officer of the Company, and as a non-independent director of the company. Eric Bruns and Dionne Pendelton will be appointed as independent
directors of the Company. The parties have agreed to indemnify each other for any losses that may be incurred by them as a result of their
breach of any of their representations, warranties and covenants contained in the Exchange Agreement. The Exchange Agreement contains
customary representations, warranties, covenants and conditions for a transaction of this type for the benefit of the parties. Prior to
the Closing, certain parties to the Exchange Agreement (collectively, the “Lockup Parties”) will be subject to the terms of
a lock-up leak-out agreement, which will provide the manner in which such Lockup Parties may sell, transfer or dispose of their shares
of common stock during the 12-month period following the Closing.

The foregoing information is a summary of each of the agreements involved
in the transactions described above, is not complete, and is qualified in its entirety by reference to the full text of those agreements,
each of which is attached an exhibit to this Current Report on Form 8-K. Readers should review those agreements for a