Company: KAVL
Filing Date: 2025-06-16
Form Type: S-3
Source: 0001731122-25-000885
Chunk: 42

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-06-16
Form: S-3
Chunk 42
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 | we fail to pay any interest within 30 days after it becomes due; |

| ● | we fail to comply with any other covenant in the debt securities or the indenture for 60 days after written notice specifying the failure from the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding debt securities of that series; and |

| ● | certain events involving bankruptcy, insolvency, or reorganization of our company or any of our significant subsidiaries. |

The trustee may withhold notice to the holders of
the debt securities of any series of any default, except in payment of principal of, or premium, if any, or interest on the debt securities
of a series, if the trustee considers it to be in the best interest of the holders of the debt securities of that series to do so.

If an event of default (other than an event of default
resulting from certain events of bankruptcy, insolvency or reorganization) occurs, and is continuing, then the trustee or the holders
of not less than 25% in aggregate principal amount of the outstanding debt securities of any series may accelerate the maturity of the
debt securities. If this happens, the entire principal amount, plus the premium, if any, of all the outstanding debt securities of the
affected series plus accrued interest to the date of acceleration will be immediately due and payable. At any time after the acceleration,
but before a judgment or decree based on such acceleration is obtained by the trustee, the holders of a majority in aggregate principal
amount of outstanding debt securities of such series may rescind and annul such acceleration if:

| ● | all                                                                                                                
 events of default (other than nonpayment of accelerated principal, premium or interest) have been cured or waived; |

| ● | all                                                                          
 lawful interest on overdue interest and overdue principal has been paid; and |

| ● | the                                                        
 rescission would not conflict with any judgment or decree. |

In addition, if the acceleration occurs at any time
when we have outstanding indebtedness which is senior to the debt securities, the payment of the principal amount of outstanding debt
securities may be subordinated in right of payment to the prior payment of any amounts due under the senior indebtedness, in which case
the holders of debt securities will be entitled to payment under the terms prescribed in the instruments evidencing the senior indebtedness
and the indenture.

If an event of default resulting from certain events
of bankruptcy, insolvency or reorganization occurs, the principal,