Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 51

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 51
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 limit the price that investors might be willing to pay in the future for shares of Common Stock. They could also deter
potential acquirers of our company, thereby reducing the likelihood that our stockholders could receive a premium for their Common Stock
in an acquisition.

For so long as any shares of Series B Preferred
Stock remain outstanding, the majority holders of the Series B Preferred Stock are entitled to designate one individual to be nominated
to serve as a director on our board of directors.

For so long as any shares of Series B Preferred Stock
remain outstanding, the majority holders of the Series B Preferred Stock (or the Majority Holders) will be entitled to designate one (1)
individual to be nominated to serve as a director (who we refer to as the Series B Preferred Director) on our board of directors (or the
Board). At each annual meeting of the stockholders of our company, or at any special meeting called for the purpose of electing directors,
the Board shall nominate such designee for election. Unless the Board shall have received from the Majority Holders a written designation
by March 1 of each calendar year of an individual other than the then-sitting Series B Preferred Director, the Board shall nominate the
then-sitting Series B Preferred Director for re-election to the Board. The Series B Preferred Director is subject to any board of directors-related
provisions that may be contained in our Certificate of Incorporation or Bylaws. The Majority Holders, voting as a single class at a meeting
called for such purpose (or by written consent signed by the Majority Holders in lieu of such a meeting), have the sole right to remove
the Series B Preferred Director from the Board. Any vacancy created by the removal, resignation or death of a Series B Preferred Director
may solely be filled by the Majority Holders, voting as a single class, at a meeting called for such purpose (or by written consent signed
by the Majority Holders in lieu of such a meeting). The Series B Preferred Director shall be entitled to receive similar compensation,
benefits, reimbursement (including of reasonable travel expenses), indemnification and insurance coverage for his or her service as a
director of our company as the other non-employee directors of on the Board. As of the date of this Report, the seat on our Board designated
for the Series B Preferred Director is vacant due to Mr. Cassidy’s resignation from the Board on January 25, 2024. As a result of
their Board appointment right, the Majority Hold