Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 780

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 7
Chunk 780
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 31, 2023, other than the below:

QuikfillRx Service Agreement

On March 31, 2020, the Company entered into a service
agreement (the “Service Agreement”) with QuikfillRx LLC, a Florida limited liability company (“QuikfillRx”),
whereby QuikfillRx provides the Company with certain services and support relating to sales management, website development and design,
graphics, content, public communication, social media, management and analytics, and market and other research (collectively, the “Services”). 

Effective as of November 9, 2022, the Company entered
into its latest amendment to the Service Agreement with QuikfillRx (collectively with prior amendments, the “Amended Service Agreement”).
The November 9, 2022 amendment to the Service Agreement was captioned as the “Fourth Amendment” although it was the fifth
amendment to the Service Agreement. Pursuant to the Amended Service Agreement:

(a) the term of the Amended Service Agreement was
extended (unless earlier terminated pursuant to the terms of the Amended Service Agreement) from November 1, 2022 (the “Effective
Date”) until October 31, 2025, following which the term shall automatically renew for successive one (1) year period beginning November
1, 2025;

(b) QuikfillRx agreed to change its “doing business
as” name to “Kaival Marketing Services” within thirty (30) days following the Effective Date;

(c) it was provided that either party may terminate
the Amended Service Agreement without cause upon not less than ninety (90) days prior written notice to the other party;

    F-26

(d) QuikfillRx was granted a one-time, fully vested,
ten-year non-qualified option award to purchase up to 11,905 shares of Company common stock with an exercise price of $20.72 per share
(the closing price of the Company’s common stock on November 9, 2022). The option grant was memorialized pursuant to a Nonqualified
Option Agreement, dated November 9, 2022, between the Company and QuikfillRx; and

(e) the parties agreed to revise the compensation
for services as follows: (i) payment of $125,000 per month; (ii) bonus equivalent to 0.27% of the applicable gross quarterly sales and
(iii) a grant of 3,000,000 non