Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 5

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 5
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 for any of its equity securities or other security interests of any class and
any other equity-based awards; (iii) taking corporate actions such as stock splits, combinations, recapitalizations, subdivisions or pay
any dividends or make any other distributions on its equity or redeem, purchase or otherwise acquire any of its securities; (iv) incurring
or guaranteeing any indebtedness not made in the ordinary course of business in excess of specified thresholds; (v) terminating, waiving
or assigning any material right under any material agreement to which the Company is a party or entering into any material contract (other
than certain exceptions set forth in the Merger Agreement); (vi) establishing a new subsidiary or new line of business; (vii) failing
to keep in force insurance policies or coverage; (viii) waiving, releasing, assigning, settling or compromising litigation in excess of
specified thresholds; (ix) mergers and acquisitions activity; (x) adopting a plan of liquidation, dissolution, merger, consolidation,
restructuring, recapitalization or other reorganization; (xi) entering into any agreement, understanding or arrangement with respect to
the voting or transfer of its equity; (xii) hiring employees and adopting benefit plans; entering into, amending waiving or terminating
(other than terminations in accordance with their terms) any transaction with any related party to the Company (other than compensation
and benefits and advancement of expenses, in each case, provided in the ordinary course of business; and (xiii) authorizing or agreeing
to taking any of the foregoing actions.

The Parties covenants during the Interim Period also
contain a customary no shop, subject to a customary fiduciary out, requirements regarding the registration statement to be filed by Pubco
with the SEC with respect to the Business Combination, and the related stockholder meeting to be held by us to approve the Merger Agreement
and the Business Combination, and certain provisions regarding any financing that may be sought by the parties in connection with the
Transactions.

Indemnification
of Directors and Officers

The parties agreed in the Merger Agreement to customary
exculpation, indemnification and advancement of expenses existing in favor of our specified current or former directors and officers as
provided therein.

3

Post-Closing Board of Directors
and Officers of Pubco

The board of directors of Pubco upon the Closing shall be comprised of one
individual designated by us as described above and up to six (6) individuals