Document:

Exhibit 10.39

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of August 20, 2021 by and between KONA
GOLD BEVERAGE, INC., a Delaware corporation (the “Company”), and YA II PN, Ltd.,
a Cayman Islands exempt limited partnership (the “Investor”).

 

WHEREAS:

 

A.    In connection with
the Securities Purchase Agreement by and between the parties hereto of even date herewith (the “Securities Purchase
Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase Agreement,
to issue and sell to the Investor up to $3,000,000 of secured convertible debentures (the “Convertible Debentures”),
which shall be convertible into shares of the Company’s common stock, par value $0.0001 (the “Common Stock”)
(as converted, the “Conversion Shares”) and to grant to the Investor warrants (the “Warrants”)
to purchase up to 100,000,000 shares of Common Stock (as exercised, the “Warrant Shares”). Capitalized terms
not defined herein shall have the meaning ascribed to them in the Securities Purchase Agreement.

 

B.     To induce the Investors
to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, or any similar successor statute (collectively,
the “Securities Act”), and applicable state securities laws and other rights as provided for herein.

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Investors hereby agree as follows:

 

1.                 
DEFINITIONS.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

(a)               
“Effectiveness Deadline” means, with respect to a Registration Statement filed hereunder, in the event
the Company is notified by the U.S. Securities and Exchange Commission (the “SEC”) that one of the Registration
Statements, as defined below, will not be reviewed or is no longer subject to further review and comments, the Effectiveness Deadline
as to such Registration Statement shall be the 5th calendar day following the date on which the Company is so notified.

 

(b)              
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder, or any similar successor statute.

 

(c)               
“Filing Deadline” means, with respect to a Registration Statement required hereunder, the 30th calendar
day following the date hereof.

 

    	 

    	 

    

 

(d)              
“Person” means a corporation, a limited liability company, an association, a partnership, an organization,
a business, an individual, a governmental or political subdivision thereof, or a governmental agency.

 

(e)               
“Prospectus” means the prospectus included in a Registration Statement (including, without limitation,
a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement
in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all
other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

 

(f)               
“Registrable Securities” means all of (i) the shares of Common Stock issuable upon conversion of the
Convertible Debentures, (ii) the shares of Common Stock issued and held by the Investor from conversions of the Convertible Debentures,
(iii) the shares of Common Stock issuable upon exercise of the Warrants, (iv) the shares of Common Stock issued and held by the
Investor from exercise of the Warrants, (v) the additional shares issuable in connection with any anti-dilution provisions of the
Convertible Debentures or the Warrants (without giving effect to any limitations on exercise set forth in the Convertible Debentures
or the Warrants, as applicable), and (vi) any shares of Common Stock issued or issuable with respect to any shares described in
subsections (i) and (ii) above by way of any stock split, stock dividend, or other distribution, recapitalization, or similar event
or otherwise (in each case without giving effect to any limitations on exercise set forth in the Convertible Debentures or the
Warrants, as applicable).

 

(g)              
“Registration Statement” means any registration statement of the Company, including the Prospectus, amendments,
and supplements to such registration statement or Prospectus, including post-effective amendments, all exhibits thereto, and all
material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

(h)              
“Required Registration Amount” means (i) with respect to the initial Registration Statement at
least 240,677,266 shares of Common Stock issued or to be issued upon conversion of the Convertible Debentures and 100,000,000 shares
of Common Stock issued or to be issued upon exercise of the Warrants and (ii) with respect to subsequent Registration Statements,
such number of shares of Common Stock as requested by the Investor not to exceed 500% of
the maximum number of shares of
Common Stock issuable upon conversion of
all Convertible Debentures then outstanding
(assuming for purposes
hereof that (x) such Convertible
Debentures are convertible at the Conversion
Price (as defined therein) in effect as of the date of determination and (y) any such conversion shall not
take into account
any limitations on the conversion
of the Convertible Debentures set forth
therein), in each case subject to any cutback set forth in Section 2(d).

 

(i)                
“Rule 144” means Rule 144 under the Securities Act or any successor rule thereto.

 

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(j)                
“Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose
and effect as such Rule.

 

(k)              
“SEC” means the Securities and Exchange Commission or any other federal agency administering the Securities
Act and the Exchange Act at the time.

 

(l)                
“Securities Act” shall have the meaning set forth in the Recitals above.

 

2.                 
REGISTRATION.

 

(a)               
The Company’s registration obligations set forth in this Section 2 including its obligations to file Registration
Statements, obtain effectiveness of Registration Statements, and maintain the continuous effectiveness of Registration Statement
that have been declared effective shall begin on the date hereof and continue until all the Registrable Securities have been sold
or may permanently be sold without any restrictions pursuant to Rule 144, as determined by the counsel to the Company pursuant
to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the Investor (the
“Registration Period”).

 

(b)              
Subject to the terms and conditions of this Agreement, the Company shall (i) on or prior to the Filing Deadline, prepare
and file with the SEC an initial Registration Statement on Form S-3 (or, if the Company is not then eligible, on Form S-1) or any
successor form thereto covering the resale by the Investor of Registrable Securities and (ii) within 20 days of written notice
by the Investor, which may be provided anytime, and from time to time, after the resale of substantially all of the Registrable
Securities contained on a prior Registration Statement, or anytime when no effective Registration Statement is available for the
resale of Registrable Securities, prepare and file an additional Registration Statement covering the resale by the Investor of
Registrable Securities. Each Registration Statement prepared pursuant hereto shall register for resale at least the number of shares
of Common Stock equal to the Required Registration Amount as of date the Registration Statement is initially filed with the SEC.
Each Registration Statement shall contain the “Selling Stockholders” and “Plan of Distribution”
sections in substantially the form attached hereto as Exhibit A and contain all the required disclosures set forth on Exhibit
B. The Company shall use its best efforts to have each Registration Statement declared effective by the SEC as soon as practicable,
but in no event later than the Effectiveness Deadline. By 9:30 am on the business day following the date of effectiveness, the
Company shall file with the SEC, in accordance with Rule 424 under the Securities Act, the final Prospectus to be used in connection
with sales pursuant to such Registration Statement. Prior to the filing of the Registration Statement with the SEC, the Company
shall furnish a draft of the Registration Statement to the Investor for its review and comment. The Investor shall furnish comments
on the Registration Statement to the Company within twenty-four (24) hours of the receipt thereof from the Company.

 

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(c)               
During the Registration Period, the Company shall (i) promptly prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to a Registration Statement and the Prospectus used in connection with a Registration
Statement, which Prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep
such Registration Statement effective at all times during the Registration Period; (ii) prepare and file with the SEC additional
Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (iii) cause
the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement),
and as so supplemented or amended to be filed pursuant to Rule 424; (iv) respond as promptly as reasonably possible to any comments
received from the SEC with respect to a Registration Statement or any amendment thereto and as promptly as reasonably possible
provide the Investors true and complete copies of all correspondence from and to the SEC relating to a Registration Statement (provided
that the Company may excise any information contained therein that would constitute material non-public information as to any Investor
which has not executed a confidentiality agreement with the Company); and (v) comply with the provisions of the Securities Act
with respect to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such
time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by
the seller or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration
Statement that are required to be filed pursuant to this Agreement (including pursuant to this Section 2(c)) by reason of the Company’s
filing a report on Form 10-K, Form 10-Q, or Form 8-K or any analogous report under the Securities Exchange Act, the Company shall
incorporate such report by reference into the Registration Statement, if applicable, or shall file such amendments or supplements
with the SEC not later than five (4) days after the Exchange Act report is filed that created the requirement for the Company to
amend or supplement the Registration Statement.

 

(d)              
Reduction of Registrable Securities Included in a Registration Statement. Notwithstanding anything contained herein,
in the event that the SEC requires the Company to reduce the number of Registrable Securities to be included in a Registration
Statement in order to allow the Company to rely on Rule 415 with respect to a Registration Statement, then the Company shall be
obligated to include in such Registration Statement (which may be a subsequent Registration Statement if the Company needs to withdraw
a Registration Statement and refile a new Registration Statement in order to rely on Rule 415) only such limited portion of the
Registrable Securities as the SEC shall permit. Any Registrable Securities that are excluded in accordance with the foregoing terms
are hereinafter referred to as the “Cut Back Securities.” If Cut Back Securities exist, as soon as may be permitted
by the SEC, the Company shall file a Registration Statement covering the resale of the Cut Back Securities (subject also to the
terms of this Section) and shall use best efforts to cause such Registration Statement to be declared effective as promptly as
practicable thereafter.

 

(e)               
Failure to File or Obtain Effectiveness of the Registration Statement or Remain Current. If: (i) a Registration Statement
is not filed on or prior to its Filing Date, (ii) a Registration Statement is not declared effective on or prior to Effectiveness
Deadline or the Company fails to file with the SEC a request for acceleration in accordance with Rule 461 promulgated under the
Securities Act within five (5) Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier)
by the SEC that a Registration Statement will not be “reviewed,” or not subject to further review, (iii) after the
effectiveness, a Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities,
except for Cut Back Securities, for which it is required to be effective, or the Investors are otherwise not permitted to utilize
the Prospectus therein to resell such Registrable Securities for more than 30 consecutive calendar days or more than an aggregate
of 40 calendar days during any 12-month period (which need not be consecutive calendar days), or (iv) if after the six-month anniversary
of the date hereof, the Company does not have available adequate current public information as set forth in Rule 144(c) (any such
failure or breach being referred to as an “Event”), then, in addition to any other rights the holders of the
Convertible Debentures may have hereunder or under applicable law, the Company shall be in breach of the term and conditions of
this Agreement and such Event shall be deemed an event of default under the Convertible Debentures.

 

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(f)               
Piggy-Back Registrations. If at any time there is not an effective Registration Statement covering all of the Registrable
Securities and the Company proposes to register the offer and sale of any shares of its Common Stock under the Securities Act (other
than a registration (i) pursuant to a Registration Statement on Form S-8 (or other registration solely
relating to an offering or sale to employees or directors of the Company pursuant to any employee stock plan or other employee
benefit arrangement), (ii) pursuant to a Registration Statement on Form S-4 (or similar form that relates to a transaction subject
to Rule 145 under the Securities Act or any successor rule thereto), or (iii) in connection with any dividend or distribution reinvestment
or similar plan), whether for its own account or for the account of one or more stockholders of the Company and the form of Registration
Statement to be used may be used for any registration of Registrable Securities, the Company
shall give prompt written notice (in any event no later than five (5) days prior to the filing of such Registration Statement)
to the holders of Registrable Securities of its intention to effect such a registration and shall include in such registration
all Registrable Securities with respect to which the Company has received written requests for inclusion from the holders of Registrable
Securities; provided, however, that, the Company shall not be required to register any Registrable Securities
pursuant to this Section 2(f) that have been sold or may permanently be sold without any restrictions pursuant to Rule 144, as
determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s
transfer agent and the affected Holders.

 

3.                 
RELATED OBLIGATIONS.

 

(a)               
The Company shall, not less than three (3) Trading Days prior to the filing of each Registration Statement and not less
than one (1) Trading Day prior to the filing of any related amendments and supplements to all Registration Statements (except for
Annual Reports on Form 10-K), furnish to each Investor copies of all such documents proposed to be filed, which documents (other
than those incorporated or deemed to be incorporated by reference) will be subject to the reasonable and prompt review of such
Investors. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto
to which the Investors shall reasonably object in good faith; provided, that, the Company is notified of such objection
in writing no later than two (2) Trading Days after the Investors have been so furnished copies of a Registration Statement.

 

(b)              
The Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without
charge, (i) at least one (1) copy of such Registration Statement, as declared effective by the SEC and any amendment(s) thereto,
including financial statements and schedules, all documents incorporated therein by reference, all exhibits, and each preliminary
prospectus, (ii) ten (10) copies of the final prospectus included in such Registration Statement and all amendments and supplements
thereto (or such other number of copies as such Investor may reasonably request), and (iii) such other documents, which are not
publicly available through EDGAR, as such Investor may reasonably request from time to time in order to facilitate the disposition
of the Registrable Securities owned by such Investor.

 

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(c)               
The Company shall use its best efforts to (i) register and qualify the Registrable Securities covered by a Registration
Statement under such other securities or “blue sky” laws of such jurisdictions in the United States as any Investor
reasonably requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration
Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times
during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith
or as a condition thereto to (w) make any change to its Certificate of Incorporation or By-laws, (x) qualify to do business in
any jurisdiction where it would not otherwise be required to qualify but for this Section 3(c), (y) subject itself to general
taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall
promptly notify each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to
the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or “blue
sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threat of any proceeding
for such purpose.

 

(d)              
As promptly as practicable after becoming aware of such event or development, the Company shall notify each Investor in
writing of the happening of any event as a result of which the Prospectus included in a Registration Statement, as then in effect,
includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading (provided that in no event
shall such notice contain any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration
Statement to correct such untrue statement or omission, and deliver ten (10) copies of such supplement or amendment to each Investor.
The Company shall also promptly notify each Investor in writing (i) when a Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification
of such effectiveness shall be delivered to each Investor by facsimile on the same day of such effectiveness), (ii) of any request
by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information, and (iii) of
the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 

(e)               
The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of
a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
within the United States of America and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension
at the earliest possible moment and to notify each Investor who holds Registrable Securities being sold of the issuance of such
order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

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(f)               
If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could
reasonably be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall furnish
to such Investor, on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates
as an Investor may reasonably request, (i) a letter, dated such date, from the Company’s independent certified public accountants
in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public
offering and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement,
in form, scope, and substance as is customarily given in an underwritten public offering, addressed to the Investors. Upon the
request of the documents discussed above pursuant to this Section 3(f), the Investor shall provide documents to the Company typically
provided by an underwriter of its securities in form, scope, and substance as is customarily given in an underwritten public offering,
including an opinion of counsel representing the Investor for purposes of such Registration Statement, addressed to the Company.

 

(g)              
If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could
reasonably be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall make available
for inspection by (i) any Investor and (ii) one (1) firm of accountants or other agents retained by the Investors (collectively,
the “Inspectors”) all pertinent financial and other records, and pertinent corporate documents and properties
of the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each Inspector, and
cause the Company’s officers, directors, and employees to supply all information that any Inspector may reasonably request;
provided, however, that each Inspector shall agree, and each Investor hereby agrees, to hold in strict confidence
and shall not make any disclosure (except to an Investor) or use any Record or other information that the Company determines in
good faith to be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records
is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the Securities
Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government
body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than
by disclosure in violation of this or any other agreement of which the Inspector and the Investor has knowledge. Each Investor
agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.

 

(h)              
The Company shall hold in confidence and not make any disclosure of information concerning the Investor provided to the
Company unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure
of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release
of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of
competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation
of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning
an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written
notice to such Investor and allow such Investor, at the Investor’s expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, such information.

 

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(i)                
The Company shall use its best efforts to cause all the Registrable Securities to be listed on each securities exchange
on which the Common Stock is then listed. The Company shall pay all fees and expenses in connection with satisfying its obligation
under this Section 3(i).

 

(j)                
The Company shall cooperate with the holders of the Registrable Securities to facilitate the
timely preparation and delivery of certificates representing the Registrable Securities to be sold pursuant to such Registration
Statement or Rule 144 free of any restrictive legends and representing such number of shares of Common Stock and registered in
such names as the holders of the Registrable Securities may reasonably request a reasonable period of time prior to sales of Registrable
Securities pursuant to such Registration Statement or Rule; provided, that the Company may satisfy its obligations hereunder
without issuing physical stock certificates through the use of The Depository Trust Company’s Direct Registration System.

 

(k)              
The Company shall use its best efforts to cause the Registrable Securities to be registered with or approved by such other
governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable Securities.

 

(l)                
The Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection
with any registration hereunder.

 

(m)            
Within two (2) business days after a Registration Statement that covers Registrable Securities is declared effective by
the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investor whose Registrable Securities are included in such Registration Statement) confirmation
that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit C.

 

(n)              
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investor of
Registrable Securities pursuant to a Registration Statement.

 

4.                 
OBLIGATIONS OF THE INVESTORS.

 

(a)               
The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described
in Section 3(d), such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration
Statement covering such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended
prospectus contemplated by Section 3(d) or receipt of notice that no supplement or amendment is required. Notwithstanding anything
to the contrary, the Company shall cause its transfer agent to deliver unlegended certificates for shares of Common Stock to a
transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale of Registrable
Securities with respect to which an Investor has entered into a contract for sale prior to the Investor’s receipt of a notice
from the Company of the happening of any event of the kind described in Section 3(d) and for which the Investor has not yet settled.

 

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(b)              
Registrable

 

5.                 
EXPENSES OF REGISTRATION.

 

All expenses incurred
by the Company in complying with its obligations pursuant to this Agreement and in connection with the registration and disposition
of Registrable Securities shall be paid by the Company, including, without limitation, all registration, listing and qualifications
fees, printers, fees, and expenses of the Company’s counsel and accountants (except legal
fees of Investor’s counsel associated with the review of the Registration Statement).

 

6.                 
INDEMNIFICATION.

 

With respect to Registrable
Securities that are included in a Registration Statement under this Agreement:

 

(a)               
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor,
the directors, officers, partners, employees, agents, representatives of, and each Person, if any, who controls any Investor within
the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement,
or expenses, joint or several (collectively, “Claims”) incurred in investigating, preparing, or defending any
action, claim, suit, inquiry, proceeding, investigation, or appeal taken from the foregoing by or before any court or governmental,
administrative, or other regulatory agency, body, or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which Registrable Securities are offered (a “Blue Sky Filing”), or the omission
or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading;
(ii) any untrue statement or alleged untrue statement of a material fact contained in any final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act,
any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through (iii)
being, collectively, “Violations”). The Company shall reimburse the Investors and each such controlling person
promptly as such expenses are incurred and are due and payable for any legal fees, or disbursements or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (x) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation that occurs in reliance upon and in conformity with information furnished in writing to the Company
by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment
thereof or supplement thereto; (y) shall not be available to the extent such Claim is based on a failure of the Investor to deliver
or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company
pursuant to Section 3(c); and (z) shall not apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be unreasonably withheld, delayed, denied, or conditioned.
Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person.

 

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(b)              
In connection with a Registration Statement, the Investor, severally and not jointly, agrees to indemnify, hold harmless,
and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each
of its officers, employees, representatives, or agents and each Person, if any, who controls the Company within the meaning of
the Securities Act or the Exchange Act (each, an “Indemnified Party”), against any Claim or Indemnified Damages
to which any of them may become subject, under the Securities Act, the Exchange Act, or otherwise, insofar as such Claim or Indemnified
Damages arise out of or is based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs
in reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection
with such Registration Statement; and, subject to Section 6(d), such Investor will reimburse any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity
agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply
to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which
consent shall not be unreasonably withheld, delayed, denied, or conditioned; provided, further, however, that
the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed
the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party.
Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(b) with respect
to any prospectus shall not inure to the benefit of any Indemnified Party if the untrue statement or omission of material fact
contained in the prospectus was corrected and such new prospectus was delivered to each Investor prior to such Investor’s
use of the prospectus to which the Claim relates.

 

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(c)               
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement
of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right
to retain its own counsel with the fees and expenses of not more than one (1) counsel for such Indemnified Person or Indemnified
Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel
in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The
indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense
or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim
or proceeding effected without its prior written consent; provided, however, that the indemnifying party shall not
unreasonably withhold, delay, deny, or condition its consent. No indemnifying party shall, without the prior written consent of
the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise
that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified
Person of a release from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder,
the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third
parties, firms, or corporations relating to the matter for which indemnification has been made. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying
party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying
party is prejudiced in its ability to defend such action.

 

(d)              
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)               
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

    	-11-

    	 

    

 

7.                 
CONTRIBUTION.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided,
however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of
fraudulent misrepresentation and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net
amount of proceeds received by such seller from the sale of such Registrable Securities.

 

8.                 
REPORTS UNDER THE EXCHANGE ACT.

 

With a view to making available
to the Investors the benefits of Rule 144 promulgated under the Securities Act or any similar rule or regulation of the SEC that
may at any time permit the Investors to sell securities of the Company to the public without registration and, as a material inducement
to the Investor’s purchase of the Convertible Debentures, the Company represents, warrants, and covenants to the following:

 

(a)               
The Company is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required
reports under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period
that the issuer was required to file such reports), other than Form 8-K reports.

 

(b)              
During the Registration Period, the Company shall file with the SEC in a timely manner all required reports under section
13 or 15(d) of the Exchange Act (it being understood that nothing herein shall limit the Company’s obligations under the
Securities Purchase Agreement) and such reports shall conform to the requirement of the Exchange Act and the SEC for filing thereunder.

 

(c)               
The Company shall furnish to the Investor so long as such Investor owns Registrable Securities, promptly upon request, (i)
a written statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent
Annual Report on From 10-K or Quarterly Report on Form 10-Q of the Company and such other reports and documents so filed by the
Company, and (iii) such other information as may be reasonably requested to permit the Investors to sell such securities pursuant
to Rule 144 without registration.

 

9.                 
AMENDMENT OF REGISTRATION RIGHTS.

 

Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and Investors who then hold at least two-thirds (2/3) of the Registrable
Securities. Any amendment or waiver effected in accordance with this Section 9 shall be binding upon each Investor and the Company.
No such amendment shall be effective if it applies to fewer than all of the holders of the Registrable Securities. No consideration
shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of this Agreement
unless the same consideration also is offered to all of the parties to this Agreement.

 

    	-12-

    	 

    

 

10.             
MISCELLANEOUS.

 

(a)               
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such
Registrable Securities or owns the right to receive the Registrable Securities. If the Company receives conflicting instructions,
notices, or elections from two (2) or more Persons with respect to the same Registrable Securities, the Company shall act upon
the basis of instructions, notice, or election received from the registered owner of such Registrable Securities.

 

(b)              
No Piggyback on Registrations. The Company shall not file any other registration statements on Form S-3, Form S-1,
or otherwise until the initial Registration Statement required hereunder is declared effective by the SEC; provided, that
this Section 10(b) shall not prohibit the Company from filing amendments to registration statements already filed. The Company
shall not include any other securities on a Registration Statement unless otherwise agreed by the Investor.

 

(c)               
Any notices, consents, waivers, or other communications required or permitted to be given under the terms of this Agreement
must be in writing and will be deemed to have been delivered pursuant to the notice provisions of the Securities Purchase Agreement
or to such other address and/or e-mail address and/or to the attention of such other person as the recipient party has specified
by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt
(i) given by the recipient of such notice, consent, waiver, or other communication, (ii) electronically generated by the sender’s
e-mail service provider containing the time, date, and recipient e-mail, or (iii) provided by a courier or overnight courier service
shall be rebuttable evidence of personal service, receipt by facsimile, or receipt from a nationally recognized overnight delivery
service in accordance with this section.

 

(d)              
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising
such right or remedy, shall not operate as a waiver thereof.

 

(e)               
The laws of the State of New York shall govern all issues concerning the relative rights of the Company and the Investors
as its stockholders. All other questions concerning the construction, validity, enforcement, and interpretation of this Agreement
shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of
any jurisdiction other than the State of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the
Supreme Court of the State of New York, sitting in New York County, New York and federal courts for the Southern District of New
York sitting New York, New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action, or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action, or proceeding is brought
in an inconvenient forum or that the venue of such suit, action, or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof
(by certified mail, return receipt requested, postage prepaid) to such party at the address for such notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. If any provision of this Agreement
shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability
of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in
any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR
THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

    	-13-

    	 

    

 

(f)               
This Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties
hereto.

 

(g)              
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning
hereof.

 

(h)              
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto as
an attachment to an e-mail of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(i)                
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments, and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(j)                
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent
and no rules of strict construction will be applied against any party.

 

(k)              
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns,
and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

    	-14-

    	 

    

 

IN WITNESS WHEREOF,
the Investor and the Company have caused their signature page to this Registration Rights Agreement to be duly executed as of the
date first above written.

 

	 	COMPANY:
	 	KONA
GOLD BEVERAGE, INC.
	 	 	 
	 	By:	 
	 	Name:
Robert Clark
	 	Title:	CEO
	 	 	 
	 	INVESTOR:
	 	YA II PN,
LTD.
	 	 	 
	 	By:	Yorkville Advisors
Global, LP
	 	Its:	Investment Manager

 

	 	By:	Yorkville Advisors Global
    II, LLC
	 	Its:	General Partner
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	-15-

    	 

    

 

EXHIBIT A

 

SELLING STOCKHOLDERS AND PLAN OF DISTRIBUTION

 

YORKVILLE TO PROVIDE

 

    	16

    	 

    

 

EXHIBIT B

 

OTHER DISCLOSURES 

 

[See attachment provided]

 

YORKVILLE TO PROVIDE

 

    	17

    	 

    

 

EXHIBIT C

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Attention:

 

	 	Re:	KONA GOLD BEVERAGE, INC.

 

Ladies and Gentlemen:

 

We are counsel to KONA
GOLD BEVERAGE, INC., a Delaware corporation (the “Company”), and have represented the Company in connection
with that certain Securities Purchase Agreement (the “Securities Purchase Agreement”) entered into by and among
the Company and the Investors named therein (collectively, the “Investors”), pursuant to which the Company issued
to the Investors up to $3,000,000 of convertible debentures (the “Convertible Debentures”), which are convertible
into its Common Stock, par value $0.00001 per share (the “Common Stock”). Pursuant to the Securities Purchase
Agreement, the Company also has entered into a Registration Rights Agreement with the Investors (the “Registration Rights
Agreement”), pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined
in the Registration Rights Agreement) under the Securities Act of 1933, as amended (the “Securities Act”). In
connection with the Company’s obligations under the Registration Rights Agreement, on ____________ 2021, the Company filed
a Registration Statement on Form S-1 (File No. 333-_____________) (the “Registration Statement”) with the
Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities, which names each
of the Investors as a selling stockholder thereunder.

 

In connection with the
foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the Securities Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS]
and we have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order suspending its effectiveness
has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable Securities
are available for resale under the Securities Act pursuant to the Registration Statement.

 

	 	Very
truly yours,
	 	 
	 	Clark
Hill PLC
	 	 
	 	By:	 

 

cc:[LIST NAMES OF
Investors]

 

18Exhibit 10.40

 

SECOND AMENDED AND RESTATED

SECURITY AGREEMENT

 

THIS SECOND AMENDED
AND RESTATED SECURITY AGREEMENT (the “Agreement”) is entered into as of August 20, 2021, by and among KONA
GOLD BEVERAGE, INC. (formerly known as Kona Gold Solutions, Inc.) (the “Company”), a Delaware corporation,
KONA GOLD, LLC (“KG”), a Delaware limited liability company, GOLD LEAF DISTRIBUTION LLC (“GL”),
a Florida limited liability company, HIGHDRATE, LLC (“HD”), Florida limited liability company, S AND
S BEVERAGE, INC. (“S&S”), a Wisconsin corporation (KG, GL, HD and S&S are collectively referred
to as the “Guarantors,” and together with the Company, the “Grantors”) in favor of YA
II PN, LTD. (the “Secured Party”), a Cayman Island exempted company.

 

WHEREAS, in connection
with the Securities Purchase Agreement by and between the Company and the Secured Party dated May 14, 2020 (the “May
2020 Securities Purchase Agreement”), the Company agreed, upon the terms and subject to the conditions of the
May 2020 Securities Purchase Agreement, and (i) issued to the Secured Party an aggregate original principal amount of $1,000,000
of senior secured convertible debentures (the “May 2020 Convertible Debentures”), which shall be convertible
into shares of the Company’s common stock, par value $0.00001 (the “Common Stock”); and (ii) granted to
the Secured Party a warrant (the “May 2020 Warrant”) to be exercisable to acquire additional shares of Common
Stock initially in that number of shares of Common Stock set forth in the May 2020 Securities Purchase Agreement;

 

WHEREAS, the Company,
the Secured Party and each of KG, GL and HD executed and delivered a Security Agreement dated May 14, 2020 (the “May 2020
Security Agreement”) in favor of the Secured Party, providing for the grant to the Secured Party of a security interest
in all tangible and intangible personal property of the Company and each of the Grantors to secure all of the Company’s obligations
under the “Transaction Documents” (as that term is defined in the May 2020 Securities Purchase Agreement, and hereinafter
referred to as the “May 2020 Transaction Documents”), which is now hereby amended and restated;

 

WHEREAS, each of
KG, GL, and HD executed and delivered a Global Guaranty dated May 14, 2020 (the “May 2020 Guaranty”) in favor
of the Secured Party, with respect to the Company’s obligations under the May 2020 Securities Purchase Agreement, the May
2020 Convertible Debentures, and the May 2020 Transaction Documents;

 

WHEREAS, each of
KG, GL, and HD received a direct benefit from the Secured Party entering into the May 2020 Securities Purchase Agreement, the May
2020 Convertible Debentures, and the May 2020 Transaction Documents;

 

WHEREAS, the Company
acquired all of the stock and assets of S&S on or about February 1, 2021;

 

WHEREAS, in connection
with the Securities Purchase Agreement by and between the Company and the Secured Party dated February 10, 2021 (the “February
2021 Securities Purchase Agreement”), the Company agreed, upon the terms and subject to the conditions thereof, (i) to
issue to the Secured Party an aggregate original principal amount of $1,500,000 of senior secured convertible debentures (the “February
2021 Convertible Debentures”), which shall be convertible into shares of the Company’s Common Stock; and (ii) to
grant to the Secured Party a warrant (the “February 2021 Warrant”) to be exercisable to acquire additional shares
of Common Stock initially in that number of shares of Common Stock set forth in the February 2021 Securities Purchase Agreement
and the February 2021 Warrant;

 

    	1

    	 

    

 

WHEREAS, as a condition
precedent to the Secured Party purchasing the February 2021 Convertible Debentures and being granted the February 2021 Warrant
pursuant to the February 2021 Securities Purchase Agreement, each of the Grantors executed and delivered to the Secured Party an
amended and restated Security Agreement (the “February 2021 Security Agreement”), providing for the grant to
the Secured Party of a security interest in all tangible and intangible personal property of each of the Grantors to secure all
of the Company’s obligations under the “Transaction Documents” (as defined in the February 2021 Securities Purchase
Agreement) (the “February 2021 Transaction Documents”); 

 

WHEREAS, each of
KG, GL, and HD executed and delivered an and amended and restated Global Guaranty dated February 10, 2021 (the “February
2021 Guaranty”) in favor of the Secured Party, with respect to the Company’s obligations under the February 2021
Securities Purchase Agreement, the February 2021 Convertible Debentures, and the February 2021 Transaction Documents;

 

WHEREAS, each of
KG, GL, and HD received a direct benefit from the Secured Party entering into the February 2021 Securities Purchase Agreement,
the February 2021 Convertible Debentures, and the February 2021 Transaction Documents;

 

WHEREAS, in connection
with the Securities Purchase Agreement by and between the Company and the Secured Party dated the date hereof (the “August
2021 Securities Purchase Agreement”), the Company agreed, upon the terms and subject to the conditions of the August
2021 Securities Purchase Agreement, (i) to issue to the Secured Party an aggregate original principal amount of $3,000,000 of senior
secured convertible debentures (the “August 2021 Convertible Debentures”), which shall be convertible into shares
of the Company’s Common Stock; and (ii) to grant to the Secured Party a warrant (the “August 2021 Warrant”)
to be exercisable to acquire additional shares of Common Stock initially in that number of shares of Common Stock set forth in
the August 2021 Securities Purchase Agreement and the August 2021 Warrant;

 

WHEREAS, it is a
condition precedent to the Secured Party purchasing the August 2021 Convertible Debentures and being granted the August 2021 Warrant
pursuant to the August 2021 Securities Purchase Agreement that each of the Grantors shall have executed and delivered to the Secured
Party this Second Amended and Restated Security Agreement providing for the grant to the Secured Party of a security interest in
all tangible and intangible personal property of each of the Grantors to secure all of the Company’s obligations under the
“Transaction Documents” (as defined in the August 2021 Securities Purchase Agreement), the May 2020 Transaction Documents,
and the February 2021 Transaction Documents (collectively referred to as the “Transaction Documents”); 

 

    	2

    	 

    

 

NOW, THEREFORE, in
consideration of the promises and the mutual covenants herein contained, and for other good and valuable consideration, the adequacy
and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE
1.

 

DEFINITIONS AND INTERPRETATIONS

 

1.1   
Recitals.

 

The above recitals are
true and correct and are incorporated herein, in their entirety, by this reference.

 

1.2   
Interpretations.

 

Nothing herein expressed
or implied is intended or shall be construed to confer upon any person other than the Secured Party any right, remedy or claim
under or by reason hereof.

 

1.3   
Definitions.

 

(a)                
To the extent used in this Agreement and not defined herein, terms defined in the UCC shall
have the meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined) ascribed
to such terms in the UCC. To the extent the definition of any category or type of Collateral is expanded by any amendment, modification,
or revision to the UCC, such expanded definition will apply automatically as of the date of such amendment, modification, or revision.

 

(b)                
As used in this Agreement, the following terms shall have the meanings indicated below (such
meanings to be equally applicable to both the singular and plural forms of such terms):

 

“Collateral”
has the meaning set forth in Section 2.1.

 

“Event
of Default” shall mean (i) any Grantor defaulting in any of its obligations under this Agreement; or (ii) the occurrence
of a default or event of default under the May 2020 Securities Purchase Agreement, the February 2021 Securities Purchase Agreement,
the August 2021 Securities Purchase Agreement, the May 2020 Convertible
Debentures, the February 2021 Convertible Debentures, the August 2021 Convertible
Debentures, the May 2020 Global Guaranty Agreement, the February 2021 Global
Guaranty Agreement and the August 2021 Global Guaranty Agreement or any other Transaction
Documents.

 

“GAAP”
shall mean generally accepted accounting principles in the United States of America.

 

“Indemnified
Person” shall have the meaning given in Section 8.8.

 

    	3

    	 

    

 

“Intellectual
Property” shall mean all present and future trade secrets, know-how and other proprietary information; trademarks,
trademark applications, internet domain names, service marks, trade dress, trade names, business names, designs, logos, slogans
(and all translations, adaptations, derivations and combinations of the foregoing) indicia and other source and/or business identifiers,
along with all goodwill associated with each of the foregoing, and all registrations or applications for registrations which have
heretofore been or may hereafter be issued thereon throughout the world; copyrights and copyright applications; (including copyrights
for computer programs) and all tangible and intangible property embodying the copyrights, unpatented inventions (whether or not
patentable); patents and patent applications; industrial design applications and registered industrial designs; license agreements
related to any of the foregoing and income therefrom; books, records, writings, computer tapes or disks, flow diagrams, specification
sheets, computer software, source codes, object codes, executable code, data, databases and other physical manifestations, embodiments
or incorporations of any of the foregoing; all other intellectual property; and all common law and other rights throughout the
world in and to all of the foregoing. Schedule 4 attached hereto sets forth all Intellectual Property of any Grantor (as
such Schedule may be amended, modified, or supplemented from time to time).

 

“Lien”
has the meaning set forth in Section 4.2.

 

(c)                
“Material Adverse Effect” shall mean any material and adverse effect
as determined by the Secured Party in its reasonable discretion upon (a) any Grantor’s assets, business, operations, properties,
or condition, financial or otherwise; (b) any Grantor’s ability to make payment as and when due of all or any part of the
Obligations; or (c) the Collateral.

 

“Obligations”
shall mean and include any and all debts, liabilities, obligations, covenants and duties owing by any Grantor to the Secured Party,
now existing or hereafter arising of every nature, type, and description, whether liquidated, unliquidated, primary, secondary,
secured, unsecured, direct, indirect, absolute, or contingent, and whether or not evidenced by a note, guaranty or other instrument,
and any amendments, extensions, renewals or increases thereof, including, without limitation, all those under (i) the May 2020
Securities Purchase Agreement, (ii) the May 2020 Convertible Debentures; (iii) the May 2020 Global Guaranty Agreement, (iv) any
agreement or document related to the May 2020 Securities Purchase Agreement, the May 2020 Convertible Debentures, the May 2020
Global Guaranty Agreement, or any other Transaction Documents, (v) the February 2021 Securities Purchase Agreement, (vi) the February
2021 Convertible Debentures; (vii) the February 2021 Global Guaranty Agreement, (viii) any agreement or document related to the
February 2021 Securities Purchase Agreement, the February 2021 Convertible Debentures, the February 2021 Global Guaranty Agreement,
or any other Transaction Documents, (ix) the August 2021 Securities Purchase Agreement, (x) the August 2021 Convertible Debentures;
(xi) the August 2021 Global Guaranty Agreement, (xii) any agreement or document related to the August 2021 Securities Purchase
Agreement, the August 2021 Convertible Debentures, the August 2021 Global Guaranty Agreement, or any other Transaction Document;
or (xiii) any other or related documents, and including any interest accruing thereon after insolvency, reorganization or like
proceeding relating to any Grantor, whether or not a claim for post-petition interest is allowed in such proceeding, and all costs
and expenses of the Secured Party incurred in the enforcement, collection or otherwise in connection with any of the foregoing,
including, but not limited to, reasonable attorneys’ fees and expenses and all obligations of any Grantor to the Secured
Party to perform acts or refrain from taking any action.

 

    	4

    	 

    

 

(d)                
“Real Estate” means all leases and all land, together with the buildings,
structures, parking areas, and other improvements thereon, now or hereafter owned by any Grantor, including all easements, rights-of-way,
and similar rights relating thereto and all leases, tenancies, and occupancies thereof. 

 

(e)                
“UCC” or “Uniform Commercial Code” means
the Uniform Commercial Code as in effect from time to time in the State of Washington; provided,
however, that if a term is defined in Article 9 of the Uniform Commercial Code differently than in another Article thereof,
the term shall have the meaning set forth in Article 9 of the UCC; provided, however, further, that, if by
reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of a security interest in any
Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction
other than State of Washington, “Uniform Commercial Code” means the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability
of such remedy, as the case may be. 

 

ARTICLE
2.

 

SECURITY INTEREST

 

2.1   
Grant of Security Interest.

 

(a)                
As security for the payment or performance in full of the Obligations, each Grantor hereby
pledges to the Secured Party, its successors and assigns, and hereby grants to the Secured Party, its successors and assigns, a
security interest in and to all assets and personal property of each Grantor, wherever located and whether now or hereinafter existing
and whether now owned or hereafter acquired, of every kind and description, tangible or intangible, including without limitation,
all Goods, Inventory, Equipment, Fixtures, Instruments, Documents, Accounts, Contracts and Contract Rights, Chattel Paper, Money,
Letters of Credit and Letter-of-Credit Rights, Commercial Tort Claims, Securities and all other Investment Property, General Intangibles
(including, but not limited to, Intellectual Property), Farm Products, all books and records and information relating to any of
the foregoing, all supporting obligations, and any and all Proceeds and products of any and all of the foregoing, and as more particularly
described on Exhibit A attached hereto (collectively, the “Collateral”)

 

(b)                
Simultaneously with the execution and delivery of this Agreement, each Grantor shall make,
execute, acknowledge, file, record and deliver to the Secured Party such documents, instruments, and agreements, including, without
limitation, financing statements, mortgages, certificates, affidavits, and forms as may, in the Secured Party’s reasonable
judgment, be necessary to effectuate, complete or perfect, or to continue and preserve, the security interest of the Secured Party
in the Collateral.

 

(c)                
In the event that any Grantor obtains title to any Real Estate, each Grantor shall promptly
execute and deliver an original mortgage, deed of trust, or other instrument in a form and substance acceptable to the Secured
Party in all respects sufficient to provide the Secured party with a perfected first priority lien on such Real Estate. 

 

    	5

    	 

    

 

2.2   
No Assumption of Liability.

 

(a)                
The security interest in the Collateral is granted as security only and shall not subject
the Secured Party to, or in any way alter or modify any obligation or liability of any Grantor with respect to or arising out of
the Collateral.

 

ARTICLE
3.

 

ATTORNEY-IN-FACT; PERFORMANCE

 

3.1   
Secured Party Appointed Attorney-In-Fact.

 

Each Grantor hereby appoints
the Secured Party as its attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor
or otherwise, from time to time in the Secured Party’s discretion to take any action and to execute any instrument which
the Secured Party may reasonably deem necessary to accomplish the purposes of this Agreement or for the purpose of perfecting,
confirming, continuing, enforcing or protecting the security interest in the Collateral, including, without limitation, to (a)
file one or more financing statements, continuation statements, filings with the United States Patent and Trademark Office or United
States Copyright Office (or any successor office) or other documents; (b) receive and collect all instruments made payable to any
Grantor representing any payments in respect of the Collateral or any part thereof and to give full discharge for the same; (c)
demand, collect, receipt for, settle, compromise, adjust, sue for, foreclose, or realize on the Collateral as and when the Secured
Party may determine; and (d) to execute and complete in the name of one or more Grantor such documents and forms as may be necessary
to transfer any domain names and related content to the Secured Party or its designee, including without limitation, completing
and submitting online forms in the name of each Grantor and taking all actions necessary in connection therewith. To facilitate
collection, the Secured Party may notify account debtors and obligors on any Collateral to make payments directly to the Secured
Party. The foregoing power of attorney is a power coupled with an interest and shall be irrevocable until all Obligations are paid
and performed in full. Each Grantor agrees that the powers conferred on the Secured Party hereunder are solely to protect the Secured
Party’s interests in the Collateral and shall not impose any duty upon the Secured Party to exercise any such powers.

 

3.2   
Secured Party May Perform.

 

If any Grantor fails to
perform any agreement contained herein, the Secured Party, at its option, may itself perform, or cause performance of, such agreement,
and the expenses of the Secured Party incurred in connection therewith shall be included in the Obligations secured hereby and
payable by any Grantor under Section 8.4.

 

    	6

    	 

    

 

ARTICLE
4.

 

REPRESENTATIONS AND WARRANTIES

 

4.1   
Authorization: Enforceability.

 

Each of the parties hereto
represents and warrants that it has taken all action necessary to authorize the execution, delivery and performance of this Agreement
and the transactions contemplated hereby; and upon execution and delivery, this Agreement shall constitute a valid and binding
obligation of the respective party, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
creditors’ rights or by the principles governing the availability of equitable remedies.

 

4.2   
Ownership of Collateral; Priority of Security Interest.

 

Each Grantor represents
and warrants that it is the legal and beneficial owner of the Collateral free and clear of any lien, security interest, option
or other charge or encumbrance (each, a “Lien”) except for the Permitted Liens. Except for the Permitted
Liens, (i) the security interest granted to the Secured Party hereunder shall be a first priority security interest subject to
no other Liens, and (ii) no financing statement covering any of the Collateral or any proceeds thereof is on file in any public
office.

 

4.3   
Location of Collateral. 

 

The Collateral is or will
be kept at the address(es) of each Grantor or other third party set forth on Schedule 4.3 attached hereto. S&S represents
and warrants that third parties RJM Enterprises of Ramsey, Minnesota and City Brewing Co., LLC of LaCrosse, Wisconsin have possession
of S&S Collateral, including, but not limited to, Inventory. Unless otherwise provided herein, no Grantor will remove any Collateral
from such locations without the prior written consent of the Secured Party.

 

4.4   
Location, State of Incorporation and Name of Grantor.

 

Each Grantor’s principal
place of business; state of incorporation, organization, or formation; organization id; and exact legal name is set forth on Schedule
4.4 attached hereto.

 

4.5   
Solvency. 

 

Each Grantor is able to
pay its debts as they mature, has capital sufficient to carry on its business, and the fair present saleable value of its assets,
calculated on a going concern basis, is in excess of the amount of its liabilities.

 

ARTICLE
5.

 

DEFAULT; REMEDIES; SUBSTITUTE COLLATERAL

 

5.1   
Method of Realizing Upon the Collateral: Other Remedies.

 

If any Event of Default
shall have occurred and be continuing:

 

    	7

    	 

    

 

(a)                
The Secured Party may exercise in respect of the Collateral, in addition to any other rights
and remedies provided for herein or otherwise available to it, all of the rights and remedies of a secured party upon default under
the UCC (whether or not the UCC applies to the affected Collateral), and also may (i) take absolute control of the Collateral,
including, without limitation, transfer into the Secured Party’s name or into the name of its nominee or nominees (to the
extent the Secured Party has not theretofore done so) and thereafter receive, for the benefit of the Secured Party, all payments
made thereon, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto as though
it were the outright owner thereof, (ii) require each Grantor to assemble all or part of the Collateral as directed by the Secured
Party and make it available to the Secured Party at a place or places to be designated by the Secured Party that is reasonably
convenient to both parties, and the Secured Party may enter into and occupy any premises owned or leased by any Grantor where the
Collateral or any part thereof is located or assembled for a reasonable period in order to effectuate the Secured Party’s
rights and remedies hereunder or under law, without obligation to any Grantor in respect of such occupation, and (iii) without
notice except as specified below and without any obligation to prepare or process the Collateral for sale, (A) sell the Collateral
or any part thereof in one or more parcels at public or private sale, at any of the Secured Party’s offices or elsewhere,
for cash, on credit or for future delivery, and at such price or prices and upon such other terms as the Secured Party may deem
commercially reasonable and/or (B) lease, license or dispose of the Collateral or any part thereof upon such terms as the Secured
Party may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale or any other disposition of the
Collateral shall be required by law, at least ten (10) days’ notice to each Grantor of the time and place of any public sale
or the time after which any private sale or other disposition of the Collateral is to be made shall constitute reasonable notification.
The Secured Party shall not be obligated to make any sale or other disposition of any Collateral regardless of notice of sale having
been given. The Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. Each Grantor hereby
waives any claims against the Secured Party arising by reason of the fact that the price at which the Collateral may have been
sold at a private sale was less than the price which might have been obtained at a public sale or was less than the aggregate amount
of the Obligations, even if the Secured Party accepts the first offer received and does not offer such Collateral to more than
one offeree, and waives all rights that each Grantor may have to require that all or any part of such Collateral be marshaled upon
any sale (public or private) thereof. Each Grantor hereby acknowledges that (i) any such sale of the Collateral by the Secured
Party may be made without warranty, (ii) the Secured Party may specifically disclaim any warranties of title, possession, quiet
enjoyment, or the like, and (iii) such actions set forth in clauses (i) and (ii) above shall not adversely affect the commercial
reasonableness of any such sale of Collateral. In connection with such exercise of rights, the Secured Party shall have an irrevocable
non-exclusive, royalty free license to use the Intellectual Property, which shall include a right for the Secured Party to grant
one or more non-exclusive sublicenses to use the Intellectual Property.

 

(b)                
Any cash held by the Secured Party as Collateral and all cash proceeds received by the Secured
Party in respect of any sale of or collection from, or other realization upon, all or any part of the Collateral may be applied
(after payment of any amounts payable to the Secured Party pursuant to Section 8.4 hereof) by the Secured Party against, all or
any part of the Obligations in such order as the Secured Party shall elect. Any surplus of such cash or cash proceeds held by the
Secured Party and remaining after the indefeasible payment in full in cash of all of the Obligations shall be paid over to whomsoever
shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct.

 

    	8

    	 

    

 

(c)                
In the event that the proceeds of any such sale, collection or realization are insufficient
to pay all amounts to which the Secured Party is legally entitled, each Grantor shall be liable for the deficiency, together with
interest thereon at the rate specified in the February 2021 Convertible Debentures and/or the August 2021 Convertible Debentures
for interest on overdue principal thereof or such other rate as shall be fixed by applicable law, together with the costs of collection
and the reasonable fees, costs, expenses and other client charges of any attorneys employed by the Secured Party to collect such
deficiency.

 

(d)                
Each Grantor hereby acknowledges that if the Secured Party complies with any applicable state,
provincial, or federal law requirements in connection with a disposition of the Collateral, such compliance will not adversely
affect the commercial reasonableness of any sale or other disposition of the Collateral.

 

(e)                
The Secured Party shall not be required to marshal any present or future collateral security
(including, but not limited to, this Agreement and the Collateral) for, or other assurances of payment of, the Obligations or any
of them or to resort to such collateral security or other assurances of payment in any particular order, and all of the Secured
Party’s rights hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and
in addition to all other rights, however existing or arising. To the extent permitted by applicable law, each Grantor hereby agrees
that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of
the Secured Party’s rights under this Agreement or under any other instrument creating or evidencing any of the Obligations
or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise
assured, and, to the extent permitted by applicable law, each Grantor hereby irrevocably waives the benefits of all such laws.

 

5.2   
Duties Regarding Collateral.

 

The Secured Party shall
have no duty as to the collection or protection of the Collateral or any income thereon or as to the preservation of any rights
pertaining thereto, beyond the safe custody and reasonable care of any of the Collateral actually in the Secured Party’s
possession.

 

ARTICLE
6.

 

AFFIRMATIVE COVENANTS

 

So long as any of the Obligations
shall remain outstanding, unless the Secured Party shall otherwise consent in writing:

 

6.1   
Existence, Properties, Etc.

 

(a)                
Each Grantor (a) shall do, or cause to be done, all things, or proceed with due diligence
with any actions or courses of action, that may be reasonably necessary (i) to maintain each Grantor’s due organization,
valid existence and good standing under the laws of its state of incorporation, and (ii) to preserve and keep in full force and
effect all qualifications, licenses and registrations in those jurisdictions in which the failure to do so could have a Material
Adverse Effect; and (b) shall not do, or cause to be done, any act impairing each Grantor’s corporate power or authority
(i) to carry on each Grantor’s business as now conducted, and (ii) to execute or deliver this Agreement or any other agreement
or document delivered in connection herewith, including, without limitation, the February 2021 Convertible Debentures and/or the
August 2021 Convertible Debentures to which it is or will be a party, or perform any of its obligations hereunder or thereunder.

 

    	9

    	 

    

 

6.2   
Maintenance of Books and Records: Inspection.

 

Each Grantor shall maintain
its books, accounts and records in accordance with GAAP, and permit the Secured Party, its officers and employees and any professionals
designated by the Secured Party in writing, at any time during normal business hours and upon reasonable notice to visit and inspect
any of its properties, corporate books and financial records, and to discuss its accounts, affairs and finances with any employee,
officer or director thereof (it being agreed that, unless an Event of Default shall have occurred and be continuing, there shall
be no more than two (2) such visits and inspections in any fiscal year).

 

6.3   
Maintenance and Insurance.

 

(a)                
Each Grantor shall maintain or cause to be maintained, at its own respective expense, all
of its material assets and properties in good working order and condition, ordinary wear and tear excepted, making all necessary
repairs thereto and renewals and replacements thereof.

 

(b)                
Each Grantor shall maintain or cause to be maintained, at its own respective expense, insurance
in form, substance and amounts (including deductibles), which each Grantor deems reasonably necessary to each Grantor’s business,
(i) adequate to insure all assets and properties of each Grantor of a character usually insured by persons engaged in the same
or similar business against loss or damage resulting from fire or other risks included in an extended coverage policy; (ii) against
public liability and other tort claims that may be incurred by each Grantor; (iii) as may be required by the February 2021 Convertible
Debentures and/or the August 2021 Convertible Debentures and/or applicable law and (iv) as may be reasonably requested by Secured
Party, all with financially sound and reputable insurers.

 

6.4   
Contracts and Other Collateral.

 

Each Grantor shall perform all of its
obligations under or with respect to each instrument, receivable, contract, and other intangible included in the Collateral to
which any Grantor is now or hereafter will be party on a timely basis and in the manner therein required, including, without limitation,
this Agreement, except to the extent the failure to so perform such obligations would not reasonably be expected to have a Material
Adverse Effect.

 

6.5   
Defense of Collateral, Etc.

 

Each Grantor shall defend
and enforce (a) its right, title and interest in and to any part of the Collateral; and (b) if not included within the Collateral,
those assets and properties whose loss would reasonably be expected to have a Material Adverse Effect, each against all manner
of claims and demands on a timely basis to the full extent permitted by applicable law (other than any such claims and demands
by holders of Permitted Liens).

 

    	10

    	 

    

 

6.6   
Taxes and Assessments.

 

Each Grantor shall (a)
file all material tax returns and appropriate schedules thereto that are required to be filed under applicable law, prior to the
date of delinquency (taking into account any extensions of the original due date), (b) pay and discharge all material taxes, assessments
and governmental charges or levies imposed upon any Grantor, upon its income and profits or upon any properties belonging to it,
prior to the date on which penalties attach thereto, and (c) pay all material taxes, assessments and governmental charges or levies
that, if unpaid, might become a lien or charge upon any of its properties; provided, however, that any Grantor
in good faith may contest any such tax, assessment, governmental charge or levy described in the foregoing clauses (b) and (c)
so long as appropriate reserves are maintained with respect thereto if and to the extent required by GAAP.

 

6.7   
Compliance with Law and Other Agreements.

 

Each Grantor shall maintain
its business operations and property owned or used in connection therewith in compliance with (a) all applicable federal, state
and local laws, regulations and ordinances governing such business operations and the use and ownership of such property, and (b)
all agreements, licenses, franchises, indentures and mortgages to which any Grantor is a party or by which any Grantor or any of
its properties is bound, except where the failure to so comply would not reasonably be expected to have a Material Adverse Effect.

 

6.8   
Notice of Default.

 

Each Grantor will immediately
notify the Secured Party of any event causing a substantial loss or diminution in the value of all or any material part of the
Collateral and the amount or an estimate of the amount of such loss or diminution. Each Grantor shall promptly notify the Secured
Party of any condition or event which constitutes, or would constitute with the passage of time or giving of notice or both, an
Event of Default, and promptly inform the Secured Party of any events or changes in the financial condition of any Grantor occurring
since the date of the last financial statement of each Grantor delivered to the Secured Party, which individually or cumulatively
when viewed in light of prior financial statements, which might reasonably be expected to have a Material Adverse Effect on the
business operations or financial condition of any Grantor.

 

6.9   
Notice of Litigation.

 

Each Grantor shall give
notice, in writing, to the Secured Party of (a) any actions, suits or proceedings wherein the amount at issue is in excess of $50,000,
instituted by any person against any Grantor, or affecting any of the assets of any Grantor, and (b) any dispute, not resolved
within fifteen (15) days of the commencement thereof, between any Grantor on the one hand and any governmental or regulatory
body on the other hand, which might reasonably be expected to have a Material Adverse Effect on the business operations or financial
condition of any Grantor.

 

6.10  Changes to Identity.

 

Each Grantor will (a) give
the Secured Party at least 30 days’ prior written notice of any change in any Grantor’s name, identity, or organizational
structure, (b) maintain its jurisdiction of incorporation, organization or formation as set forth on Schedule 4.4 attached
hereto, (c) immediately notify the Secured Party upon obtaining an organizational identification number, if on the date hereof
any Grantor did not have such identification number.

 

    	11

    	 

    

 

6.11  Perfection of Security Interests.

 

(a)                
Financing Statements. Each Grantor hereby irrevocably authorizes the Secured Party,
at the sole cost and expense of each Grantor, at any time and from time to time to file in any filing office in any jurisdiction
any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as all assets of each Grantor or words
of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of
the UCC of such jurisdiction, or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain any other information
required by Part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or amendment,
including (i) whether each Grantor is an organization, the type of organization and any organization identification number issued
to any Grantor, and (ii) in the case of a financing statement filed as a fixture filing, a sufficient description of real property
to which the Collateral relates. Each Grantor agrees to furnish any such information to the Secured Party promptly upon request.
Each Grantor also ratifies its authorization for the Secured Party to have filed in any jurisdiction any initial financing statements
or amendments thereto if filed prior to the date hereof. Each Grantor acknowledges that it is not authorized to file any financing
statement or amendment or termination statement with respect to any financing statement without the prior written consent of the
Secured Party (which shall not be unreasonably withheld, delayed, denied, or conditioned) and agrees that it will not do so without
the prior written consent of the Secured Party (which shall not be unreasonably withheld, delayed, denied, or conditioned). Each
Grantor acknowledges and agrees that this Agreement constitutes an authenticated record.

 

(b)                
Possession. Each Grantor (i) shall have possession of the Collateral, except where
expressly otherwise provided in this Agreement or where the Secured Party chooses to perfect its security interest by possession
in addition to the filing of a financing statement; and (ii) will, where the Collateral is in the possession of a third party,
join with the Secured Party in notifying the third party of the Secured Party’s security interest and obtaining an acknowledgment
from the third party that it is holding the Collateral for the benefit of the Secured Party.

 

(c)                
Control. Each Grantor will cooperate with the Secured Party in obtaining control with
respect to the Collateral consisting of (i) Investment Property, (ii) Letters of Credit and Letter-of-Credit Rights and (iii) electronic
Chattel Paper.

 

(d)                
Marking of Chattel Paper. Each Grantor will not create any Chattel Paper without placing
a legend on the Chattel Paper acceptable to the Secured Party indicating that the Secured Party has a security interest in the
Chattel Paper.

 

6.12  Notice of Commercial Tort Claims.
If any Grantor shall at any time acquire a Commercial Tort Claim, each Grantor shall immediately notify the Secured Party in a
writing signed by such Grantor which shall (a) provide brief details of said claim and (b) grant to the Secured Party a security
interest in said claim and in the proceeds thereof, all upon the terms of this Agreement, in such form and substance satisfactory
to the Secured Party.

 

    	12

    	 

    

 

6.13  Licenses.

 

(a)                
Each Grantor shall (i) promptly and faithfully observe and perform all of the material terms,
covenants, conditions and provisions of the material License Agreements to be observed and performed by it, at the times set forth
therein, if any, (ii) not do, permit, suffer or refrain from doing anything that could reasonably be expected to result in a default
under or breach of any of the terms of any material License Agreement, (iii) not cancel, surrender, modify, amend, waive or release
any material License Agreement in any material respect or any term, provision or right of the licensee thereunder in any material
respect, or consent to or permit to occur any of the foregoing; except, that Grantor may cancel, surrender or release any material
License Agreement in the ordinary course of the respective businesses of Grantor; provided, that, Grantor shall give
Secured Party not less than thirty (30) days prior written notice of their intention to so cancel, surrender and release any such
material License Agreement, (iv) give Secured Party prompt written notice of any material License Agreement entered into by any
Grantor after the date hereof, together with a true, correct and complete copy thereof and such other information with respect
thereto as Secured Party may request, (v) give Secured Party prompt written notice of any material breach of any obligation, or
any default, by any party under any material License Agreement, and deliver to Secured Party (promptly upon the receipt thereof
by any Grantor in the case of a notice to any Grantor, and concurrently with the sending thereof in the case of a notice from each
Grantor) a copy of each notice of default and every other notice and other communication received or delivered by each Grantor
in connection with any material License Agreement which relates to the right of any Grantor to continue to use the property subject
to such License Agreement, and (vi) furnish to Secured Party, promptly upon the request of Secured Party, such information and
evidence as Secured Party may require from time to time concerning the observance, performance and compliance by each Grantor or
the other party or parties thereto with the terms, covenants or provisions of any material License Agreement.

 

(b)                
Each Grantor will exercise any option to renew or extend the term of each material License
Agreement in such manner as will cause the term of such material License Agreement to be effectively renewed or extended for the
period provided by such option and give prompt written notice thereof to Secured Party or give Secured Party prior written notice
that any Grantor does not intend to renew or extend the term of any such material License Agreement or that the term thereof shall
otherwise be expiring, not less than sixty (60) days prior to the date of any such non-renewal or expiration. In the event of the
failure of any Grantor to extend or renew any material License Agreement, Secured Party shall have, and is hereby granted, the
irrevocable right and authority, at its option, to renew or extend the term of such material License Agreement, whether in its
own name and behalf, or in the name and behalf of a designee or nominee of Secured Party or in the name and behalf of Grantor,
as Secured Party shall determine at any time that an Event of Default shall exist or have occurred and be continuing. Secured Party
may, but shall not be required to, perform any or all of such obligations of any Grantor under any of the License Agreements, including,
but not limited to, the payment of any or all sums due from any Grantor thereunder. Any sums so paid by Secured Party shall constitute
part of the Obligations.

 

    	13

    	 

    

 

ARTICLE
7.

 

NEGATIVE COVENANTS

 

So long as any of the Obligations
shall remain outstanding, unless the Secured Party shall otherwise consent in writing, each Grantor covenants and agrees that it
shall not:

 

7.1   
Transfers; Liens and Encumbrances.

 

(a)                
Sell, assign (by operation of law or otherwise), lease, license, exchange or otherwise transfer
or dispose of any of the Collateral, except each Grantor may (i) sell or dispose of Inventory in the ordinary course of business,
and (ii) sell or dispose of assets such Grantor has determined, in good faith, not to be useful in the conduct of its business,
and (iii) sell or dispose of accounts in the course of collection in the ordinary course of business consistent with past practice.

 

(b)                
Directly or indirectly make, create, incur, assume, or permit to exist any Lien in, to or
against any part of the Collateral other than Permitted Liens.

 

(c)                
Each Grantor covenants and agrees that they will not, without the express written consent
of the Secured Party, grant any license (whether exclusive or non-exclusive) to use the Intellectual Property to any party other
than another Grantor, except that prior to the occurrence of an Event of Default, each Grantor may, in the ordinary course of business,
grant non-exclusive licenses to use the Intellectual Property to unrelated third parties which are customers of any Grantor in
connection with arms-length transactions, provided that such non-exclusive licenses do not impair the value of the Intellectual
Property. To the extent that any Grantor wishes to seek the Secured Party’s consent to the granting of a license to use Intellectual
Property other than as expressly permitted above, then such Grantor shall provide the Secured Party with a written request for
such consent, which request shall be accompanied by a copy of the proposed license and any documents, instruments, and agreements
related thereto or to be entered into in connection with such license, and such other information regarding the proposed license
as the Secured Party may require. The Secured Party shall endeavor to respond to such request within ten (10) days of its receipt
of such request, provided, however, that if the Secured Party does not reply within such ten (10) day period, then
such request shall be deemed to have been denied by the Secured Party. Further, the Secured Party shall not have been deemed to
have consented to any proposed license unless the Secured Party has provided such consent in a writing executed by a duly authorized
representative of the Secured Party and delivered to such Grantor. The decision by the Secured Party on whether to grant or withhold
its consent to a proposed license shall be made by the Secured Party in its sole and exclusive discretion, and the Secured Party
shall have no obligation whatsoever to consent to any proposed license.

 

7.2   
Restriction on Redemption and Cash Dividends.

 

Directly or indirectly,
redeem, repurchase, or declare or pay any cash dividend or distribution on its capital stock without the prior express written
consent of the Secured Party.

 

7.3   
Places of Business.

 

Change its state of organization or
its principal place of business without the written consent of the Secured Party.

 

    	14

    	 

    

 

ARTICLE
8.

 

MISCELLANEOUS

 

8.1   
Notices.

 

Any notices, consents,
waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will
be deemed to have been delivered upon: (i) receipt, when delivered personally, (ii) 1
Business Day after deposit with an overnight courier service with
next day delivery specified, in each case, properly addressed to the party to
receive the same, or (iii) receipt, when sent by electronic mail (provided that the
electronic mail transmission is not returned in error or the sender is not otherwise notified of any error in transmission. The
addresses and email addresses for such communications shall be:

 

	If
    to the Company or any Guarantor, to:	 Kona Gold Beverage, Inc.
	 	746
    North Drive STE A
	 	Melbourne,
    FL 32934
	 	Attention: Robert
    Clark   Telephone: 844-714-2224
	 	E-mail:
    robert@konagoldhemp.com
	 	 
	With a mandatory copy to:	Clark Hill LLP
	(which shall
    not constitute notice)	1055 West
    Seventh Street – 24th Floor   

    Los Angeles, CA 90017   

    Attention: Randolf Katz   

    Telephone: 213-417-5310   

    E-mail: rkatz@clarkhill.com

 

	If to the Secured
    Party:	YA II PN, Ltd.
	 	1012 Springfield Avenue
	 	Mountainside, NJ 07092
	 	Attention: Mark Angelo
	 	Telephone: 201-536-5114  
    

    Email: mangelo@yorkvilleadvisors.com
	 	 
	With a
    mandatory copy to:	David
    Gonzalez, Esq.
	(which shall not
    constitutenotice)	1012 Springfield Avenue
		Mountainside, NJ 07092
	 	Telephone:
    201-536-5109
	 	E-mail:
    dgonzalez@yorkvilleadvisors.com

 

or at such other address
and/or electronic email address and/or to the attention of such other person as the recipient party has specified by written notice
given to each other party three Business Days prior to the effectiveness of such change. Written confirmation of receipt (i) given
by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender’s
computer containing the time, date, recipient’s electronic mail address and the text of such electronic mail or (iii) provided
by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by electronic
mail or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

    	15

    	 

    

 

8.2   
Security Interest Absolute. All rights of the Secured Party hereunder, the security
interest in the Collateral and all obligations of each Grantor hereunder shall be absolute and unconditional irrespective of (a)
any lack of validity or enforceability of the February 2021 Convertible Debentures and/or the August 2021 Convertible Debentures,
any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b)
any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment
or waiver of or any consent to any departure from the February 2021 Convertible Debentures and/or the August 2021 Convertible Debentures,
or any other agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other collateral, or any release
or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of the Obligations,
(d) the existence of any claim, set-off or other right which any Grantor may have at any time against
any other Grantor or the Secured Party, whether in connection herewith or any unrelated transaction.

 

8.3   
Severability.

 

If any provision of this
Agreement shall be held invalid or unenforceable, such invalidity or unenforceability shall attach only to such provision and shall
not in any manner affect or render invalid or unenforceable any other severable provision of this Agreement, and this Agreement
shall be carried out as if any such invalid or unenforceable provision were not contained herein.

 

8.4   
Expenses.

 

In the event of an Event of Default,
each Grantor will jointly and severally pay to the Secured Party the amount of any and all reasonable out-of-pocket expenses, including
the reasonable fees and expenses of its counsel, which the Secured Party may incur in connection with: (i) the custody or preservation
of, or the sale, collection from, or other realization upon, any of the Collateral; (ii) the exercise or enforcement of any of
the rights of the Secured Party hereunder or, (iii) the failure by any Grantor to perform or observe any of the provisions hereof.

 

8.5   
Waivers, Amendments, Etc.

 

The Secured Party’s
delay or failure at any time or times hereafter to require strict performance by each Grantor of any undertakings, agreements or
covenants shall not waive, affect, or diminish any right of the Secured Party under this Agreement to demand strict compliance
and performance herewith. Any waiver by the Secured Party of any Event of Default shall not waive or affect any other Event of
Default, whether such Event of Default is prior or subsequent thereto and whether of the same or a different type. None of the
undertakings, agreements and covenants of each Grantor contained in this Agreement, and no Event of Default, shall be deemed to
have been waived by the Secured Party, nor may this Agreement be amended, changed or modified, unless such waiver, amendment, change
or modification is evidenced by an instrument in writing specifying such waiver, amendment, change or modification and signed by
the Secured Party in the case of any such waiver, and signed by the Secured Party and each Grantor in the case of any such amendment,
change or modification.

 

    	16

    	 

    

 

8.6   
Continuing Security Interest. This Agreement shall create a continuing security interest
in the Collateral and shall: (i) remain in full force and effect so long as any of the Obligations shall remain outstanding; (ii)
be binding upon each Grantor and its successors and assigns; and (iii) inure to the benefit of the Secured Party and its successors
and assigns. Upon the payment or satisfaction in full of the Obligations, this Agreement and the security interest created hereby
shall terminate, and, in connection therewith, each Grantor shall be entitled to the return, at its expense, of such of the Collateral
as shall not have been sold in accordance with this Agreement or otherwise applied pursuant to the terms hereof and the Secured
Party shall deliver to each Grantor such documents as such Grantor shall reasonably request to evidence such termination.

 

8.7   
Independent Representation.

 

Each party hereto acknowledges and agrees
that it has received or has had the opportunity to receive independent legal counsel of its own choice and that it has been sufficiently
apprised of its rights and responsibilities with regard to the substance of this Agreement.

 

8.8   
Indemnification.

 

Each Grantor jointly and severally hereby
covenants and agrees to indemnify, defend and hold harmless the Secured Party and its investment manager, and each of the foregoing
parties’ respective agents, servants, attorneys, advisors, officers, directors, employees, affiliates, partners, members,
managers, predecessors, successors, and assigns (each an “Indemnified Person”) of, to, and from any loss, judgment,
liability, claim, cause of action, or demand, and all costs and expenses (including reasonable attorneys’ fees) which may
be incurred, suffered, made, brought, threatened, or instituted by or against any person indemnified hereby for any reason whatsoever
on account of, arising out of, or in any way relating to the actions or inactions of any Grantor, including, without limitation
(i) any matter, fact, event, or act or omission relating to the Collateral, and/or any Grantor’s maintenance and management
of the Collateral, including any damage to the Collateral or claims threatened or brought against the Secured Party with respect
to the Collateral and/or any of any Grantor’s acts and/or omissions in connection with the same, (ii) any claims threatened
or brought by one or more third parties against any Grantor, or any of its affiliates or subsidiaries, (iii) any claims threatened
or brought by any party against the Secured Party, or any of its affiliates concerning or arising from the actions or inactions
of any of any Grantor, the Collateral, and the May 2020 Convertible Debentures, the February 2021 Convertible Debentures, and the
August 2021 Convertible Debentures, or otherwise; and/or (iv) this Agreement. The Secured Party may defend any such claim, cause
of action, or demand at the sole cost and expense of any Grantor, with counsel designated by the Secured Party and to the exclusion
of any Grantor, or the Secured Party may call upon each Grantor to defend such action at each Grantor’s sole cost and expense.
the Secured Party may, in the Secured Party’s sole and exclusive discretion, adjust, settle, or compromise any such claim,
cause of action, or demand made upon the Secured Party, and each Grantor shall jointly and severally indemnify the Secured Party
for any such amount so adjusted, settled, or compromised, as well as all costs and expenses (including attorneys’ fees) incurred
in connection therewith.

 

    	17

    	 

    

 

8.9   
Applicable Law: Jurisdiction.

 

This Agreement shall be governed by
and interpreted in accordance with the laws of the State of New Jersey without regard to the principles of conflict of laws. The
parties further agree that any action between them shall be heard in the State of New York, and expressly consent to the jurisdiction
and venue of the Supreme Court for the State of New York sitting in the Borough of Manhattan, New York and federal courts for the
Southern District of New York sitting in Borough of Manhattan, New York for the adjudication of any civil action asserted pursuant
to this Paragraph, provided, however, that nothing herein shall prevent the Secured Party from enforcing its rights
and remedies (including, without limitation, by filing a civil action) with respect to the Collateral and/or any Grantor in any
other jurisdiction in which the Collateral and/or any Grantor may be located.

 

8.10  Non-Interference.

 

From and after the occurrence of an
Event of Default, each Grantor agrees:

 

(a)                
Not to interfere with the exercise by the Secured Party of any of its rights and remedies
under this Agreement, the August 2021 Convertible Debentures, and/or applicable law; 

              
 

(b)                
They shall not seek to distrain or otherwise hinder, delay, or impair the Secured Party’s
efforts to realize upon any Collateral or otherwise to enforce its rights and remedies pursuant to this Agreement, the February
2021 Convertible Debentures and/or the August 2021 Convertible Debentures, and/or applicable law, and shall at all times cooperate
with the Secured Party’s exercise of its rights and remedies under this Agreement, the February 2021 Convertible Debentures
and/or the August 2021 Convertible Debentures, and/or applicable law; and

            
 

(c)                
The provisions of this Section shall be specifically enforceable by the Secured Party.

            
 

8.11  Automatic Stay.

 

Each Grantor agrees that upon the filing of any
Petition for Relief by or against any Grantor under the United States Bankruptcy Code, the Secured Party shall be entitled to immediate
and complete relief from the automatic stay with respect to any Grantor, and Secured Party shall be permitted to proceed to protect
and enforce its rights and remedies under applicable law. Each Grantor hereby expressly assents to, and covenants and agrees not
to oppose, any motion filed by the Secured Party seeking relief from the automatic stay. Each Grantor further hereby expressly
WAIVES the protections afforded under Section 362 of the United States Bankruptcy Code with respect to the Secured Party.

 

8.12  Credit Bidding.

 

Each Grantor hereby expressly acknowledges
and agrees, in further consideration for the Secured Party entering into this Agreement, that the Secured Party shall be permitted
to credit bid the Obligations at any auction and/or sale, including without limitation, at any auction and/or other sale conducted
under or in connection with any of the sections or chapters of the United States Bankruptcy Code. Each Grantor hereby further acknowledges
and agrees that this provision is a material inducement to the Secured Party entering into this Agreement, and each Grantor has
been represented by experienced counsel in connection with entering into this Agreement. The Secured Party, in turn, acknowledges
that this paragraph shall not be construed as a restriction or prohibition on Grantor’s respective rights to file any voluntary
petition or make application for or seek relief or protection under the United States Bankruptcy Code.

 

8.13  Waiver of Jury Trial.

 

AS A FURTHER INDUCEMENT
FOR THE SECURED PARTY TO MAKE FINANCIAL ACCOMMODATIONS TO THE COMPANIES OR ANY GRANTOR, EACH GRANTOR HEREBY WAIVES, TO THE FULLEST
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS AGREEMENT
AND/OR ANY AND ALL OTHER DOCUMENTS RELATED TO THIS TRANSACTION.

 

8.14 Right of Set Off.

 

Each Grantor hereby grants
to the Secured Party, a lien, security interest and right of setoff as security for all liabilities and obligations to the Secured
Party, whether now existing or hereafter arising, upon and against all deposits, credits, collateral, and property, now or hereafter
in the possession, custody, safekeeping, or control of the Secured Party or any of its affiliates, or any entity under the control
of the Secured Party, or in transit to any of them. At any time, without demand or notice, the Secured Party may set off the same
or any part thereof and apply the same to any liability or obligation of each Grantor even though unmatured and regardless of the
adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE THE SECURED PARTY TO EXERCISE ITS RIGHTS
OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT
TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF EACH GRANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY, AND IRREVOCABLY WAIVED.

 

    	18

    	 

    

 

8.15  Liability of Grantor.

 

Notwithstanding any provision herein
or in any other Loan Instrument, each Grantor is and shall be liable for any and all Obligations (whether any such Obligation is
specified as an obligation of any Grantor).

 

8.16  Waiver of
Claims. 

 

Each Grantor
acknowledges and agrees that they have no offsets, defenses, claims, or counterclaims against the Secured Party or its officers,
directors, employees, attorneys, representatives, parents, affiliates, predecessors, successors, or assigns with respect to the
Collateral, the February 2021 Convertible Debentures and/or the August 2021 Convertible Debentures,
the Obligations, or otherwise, and that if any Grantor now has, or ever did have, any offsets, defenses, claims, or counterclaims
against the Secured Party or its officers, directors, employees, attorneys, representatives, affiliates, predecessors, successors,
or assigns, whether known or unknown, at law or in equity, from the beginning of the world through this date and through the time
of execution of this Agreement, all of them are hereby expressly WAIVED, and each Grantor hereby RELEASES the Secured
Party and its officers, directors, employees, attorneys, representatives, affiliates, predecessors, successors, and assigns from
any liability therefor.

 

8.17  Counterparts; Facsimile Signatures.

 

This Agreement may be executed and delivered
by exchange of facsimile signatures of the Secured Party and each Grantor, and those signatures need not be affixed to the same
copy. This Agreement may be executed in any number of counterparts.

 

8.18  Entire Agreement.

 

This Agreement and the
other documents or agreements delivered in connection herewith contain the entire understanding among the parties and supersede
any prior agreement or understanding among them with respect to the subject matter hereof.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	19

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Security Agreement as of the date first above written.

 

	 	COMPANY:
	 	 
	 	KONA
GOLD BEVERAGE, INC., a Delaware
	 	corporation
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	GUARANTORS:
	 	 
	 	KONA
GOLD, LLC, a Delaware limited liability
	 	company
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	GOLD
LEAF DISTRIBUTION LLC, a Florida
	 	limited
liability company
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	HIGHDRATE,
LLC, a Florida limited liability
	 	company
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

	 	S AND S BEVERAGE, INC., a Wisconsin
	 	Corporation
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

	SECURED
PARTY:	 
	 	 	 
	YA II PN, LTD.	 
	 	 	 
	By:	Yorkville Advisors Global, LP	 
	Its:	Investment Manager	 
	 	 	 
	By:	Yorkville Advisors Global II, LLC	 
	Its:	General Partner	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	 

    	 

    

 

exhibit A

(Definition of Collateral)

 

For the purpose of securing
prompt and complete payment and performance by each Grantor of all of the Obligations, each Grantor unconditionally and irrevocably
hereby grants to the Secured Party a continuing security interest in and to, and lien upon, the following “Collateral”
of each Grantor (all capitalized terms used herein and not defined in the Agreement shall have the respective meanings ascribed
thereto in the UCC):

 

All personal property of
each Grantor, wherever located and whether now or hereinafter existing and whether now owned or hereafter acquired, of every kind
and description, tangible, or intangible, including without limitation, all:

 

1.   Goods;

 

2.   Inventory, including,
without limitation, all goods, merchandise, and other personal property which are held for sale or lease, or are furnished or to
be furnished under any contract of service or are raw materials, work-in-process, supplies, or materials used or consumed in each
Grantor’s business, and all products thereof, and all substitutions, replacements, additions, or accessions therefor and
thereto; and any cash or non-cash Proceeds of all of the foregoing;

 

3.   Equipment, including,
without limitation, all machinery, equipment, furniture, parts, tools, and dies, of every kind and description, of each Grantor
(including automotive equipment and motor vehicles), now owned or hereafter acquired by each Grantor, and used or acquired for
use in the business of each Grantor, together with all accessions thereto and all substitutions and replacements thereof and parts
therefor and all cash or non-cash Proceeds of the foregoing;

 

4.   Fixtures, including,
without limitation, all goods which are so related to particular real estate that an interest in them arises under real estate
law and all accessions thereto, replacements thereof and substitutions therefor, including, but not limited to, plumbing, heating
and lighting apparatus, mantels, floor coverings, furniture, furnishings, draperies, screens, storm windows and doors, awnings,
shrubbery, plants, boilers, tanks, machinery, stoves, gas and electric ranges, wall cabinets, appliances, furnaces, dynamos, motors,
elevators and elevator machinery, radiators, blinds and all laundry, refrigerating, gas, electric, ventilating, air-refrigerating,
air-conditioning, incinerating and sprinkling and other fire prevention or extinguishing equipment of whatsoever kind and nature
and any replacements, accessions and additions thereto, Proceeds thereof and substitutions therefor;

 

5.   Instruments (including
promissory notes);

 

6.   Documents;

 

7.   Accounts, including,
without limitation, all Contract Rights and accounts receivable, health-care-insurance receivables, and license fees; any other
obligations or indebtedness owed to each Grantor from whatever source arising; all rights of each Grantor to receive any payments
in money or kind; all guarantees of Accounts and security therefor; all cash or non-cash Proceeds of all of the foregoing; all
of the right, title and interest of each Grantor in and with respect to the goods, services or other property which gave rise to
or which secure any of the accounts and insurance policies and proceeds relating thereto, and all of the rights of each Grantor
as an unpaid seller of goods or services, including, without limitation the rights of stoppage in transit, replevin, reclamation
and resale and all of the foregoing, whether now existing or hereafter created or acquired;

 

    	 

    	 

    

 

8.  Contracts and Contract
Rights, including, to the extent not included in the definition of Accounts, all rights to payment or performance under a contract
not yet earned by performance and not evidenced by an Instrument or Chattel Paper;

 

9.  Chattel Paper (whether
tangible or electronic);

 

10. Money, cash, and
cash equivalents;

 

11. Letters of Credit
and Letter-of-Credit Rights (whether or not the Letter of Credit is evidenced by a writing);

 

12. Commercial Tort
Claims;

 

13. Securities Accounts,
Security Entitlements, Securities, Financial Assets, and all other Investment Property, including, without limitation, all ownership
or membership interests in any subsidiaries or affiliates (whether or not controlled by any Grantor);

 

14. General Intangibles,
including, without limitation, all Payment Intangibles and Intellectual Property, tax refunds and other claims of any Grantor against
any governmental authority, and all choses in action, insurance proceeds, goodwill customer lists, formulae, permits, research
and literary rights, and franchises;

 

15. Farm Products;

 

16. All books and records
and information (including all ledger sheets, files, computer programs, tapes, and related data processing software) evidencing
an interest in or relating to any of the foregoing and/or to the operation of each Grantor’s business, and all rights of
access to such books and records, and information, and all property in which such books and records, and information are stored,
recorded, and maintained;

 

17. To the extent not
already included above, all supporting obligations, and any and all cash and non-cash Proceeds, products, accessions, and/or replacements
of any of the foregoing, including proceeds of insurance covering any or all of the foregoing.

 

    	 

    	 

    

 

SCHEDULE 4

 

(Intellectual Property)

 

PATENTS, TRADEMARKS AND COPYRIGHTS

 

1. Patents

	Title	App. No.	
        Filing

         

        Date
	Patent No.	Issue Date
	---	 	 	 	 

 

2. Trademarks

	Mark	Serial No.	Filing Date	Registration No.	Registration Date
	KONA GOLD HEMP ENERGY DRINK	87/310,479	01/23/2017	5,597,686	10/30/2018
	HIGHDRATE	87/196,854	10/07/2016	5,351,770	12/05/2017
	
        KONA GOLD HEMP ENERGY DRINKS (And Design)

         

        

         

         
	90/667,851	04/23/2021	Pending	Pending
	
        OOH LA LEMIN (And Design)

         

        
	90/542,298	02/23/2021	Pending	Pending
	 	 	 	 	 
	LEMIN	88/462468	06/06/2019	Abandoned	Abandoned
	LEMI	88/394871	04/20/2019	Abandoned	Abandoned
	 	 	 	 	 
	LEMIN1	Common Law	 	 	 
	OOH
    LA LEMIN2	Common Law	 	 	 

 

1 As used in connection with “Non-alcoholic beverages,
namely, lemonades”.

2 As used in connection with “Non-alcoholic beverages,
namely, lemonades”.

 

    	 

    	 

    

 

 

	3. Copyrights and Copyright Applications
	Title	App. No.	Filing Date	Copyright No.	Issue Date
	---	 	 	 	 

 

4. Domain Names

 

https://konagoldhemp.com/

https://www.drinklemin.com/

https://goldleafdist.com/

https://www.drinklemin.com

 

    	 

    	 

    

 

SCHEDULE 4.3

(Addresses)

 

Kona Gold Beverage,
Inc. 

746 North Drive STE A

Melbourne, FL 32934

 

Kona Gold, LLC 

746 North Drive STE A

Melbourne, FL 32934

 

Gold Leaf Distribution
LLC 

746 North Drive STE A

Melbourne, FL 32934

 

HighDrate, LLC 

746 North Drive STE A

Melbourne, FL 32934

 

S and S Beverage, Inc.

700 W. Virginia Street, Suite 200 

Milwaukee, WI 53204-1549

 

RJM Enterprises

6650 143rd. Ave NW 

Ramsey, MN 55303

 

City Brewing Co., LLC

925 South Third Street 

LaCrosse, WI 54601

 

    	 

    	 

    

  

SCHEDULE 4.4

(Location, State of Incorporation, Name)

 

Kona Gold Beverage,
Inc., a Delaware corporation

746 North Drive STE A 

Melbourne, FL 32934

 

Kona Gold, LLC,
a Delaware limited liability company

746 North Drive STE A 

Melbourne, FL 32934

 

Gold Leaf Distribution
LLC, a Florida limited liability company

746 North Drive STE A 

Melbourne, FL 32934

 

HighDrate, LLC,
a Florida limited liability company

746 North Drive STE A 

Melbourne, FL 32934

 

S and S Beverage, Inc., a Wisconsin corporation

700 W. Virginia Street, Suite 200

Milwaukee, WI 53204-1549

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