Document:

Exhibit 10.1

 

DATED THIS 20th DAY OF JUNE         2021

 

 

 

BETWEEN

 

 

 

WECONNECT TECH INTERNATIONAL
INC.

(COMPANY NO.: E0292012007-4)

 

 

 

AND

 

 

 

NG CHEE CHUN

(NRIC NO.: 650921-06-5285)

 

______________________________________

 

 

SHARE SALE AGREEMENT

in respect of

the sale and purchase of
all its shareholding in

MIG MOBILE TECH BERHAD

 

______________________________________

 

 

 

 

 

    	 	 	 

     

    

 

SHARE SALE AGREEMENT

 

 

This Share Sale Agreement (“Agreement”)
is made on the 20 day of JUNE 2021.

 

 

BETWEEN:

 

		(1)	WECONNECT TECH INTERNATIONAL INC. (Company No.: E0292012007-4)
a company incorporated in the state of Nevada, United States of America with its business address at 1st
Floor Block A, Axis Business Campus, No.13A & 13B, Jalan 225, Section 51A, 46100 Petaling Jaya, Selangor, Malaysia (“Vendor”);

 

AND

 

		(2)	NG CHEE CHUN (NRIC NO: 650921-06-5285), a Malaysian individual
having his address at No 6, Jalan Budiman 6, Taman Mulia, Kuala Lumpur (“Purchaser”).

 

(Vendor and Purchaser are collectively referred to as “Parties”
and individually as a “Party”).

 

WHEREAS

 

		(A)	MIG MOBILE TECH BERHAD (Registration No.: 201501035448 (1160768-U))
(the “Company”) is a public limited company incorporated in Malaysia with an issued share capital, as at the date
of this Agreement, of Ringgit Malaysia Fifty Million (RM50,000,000.00) comprising Fifty Million (50,000,000) Ordinary Shares credited
as fully paid. Further information relating to the Company is set out in Schedule 1.

 

		(B)	As at the date of this Agreement, the Vendor is the legal and
beneficial owner of the Sale Shares (as hereinafter defined), of which the Vendor desires to sell and the Purchaser desires to purchase
the Sale Shares.

 

		(C)	The Parties have now entered into this Agreement to document the
terms and conditions governing the sale or transfer (as the case may be) of Sale Shares.

 

IT IS HEREBY AGREED:

 

		1.	DEFINITIONS AND INTERPRETATION

 

		1.1	In this Agreement, the following words and expressions will (except
where the context otherwise requires) have the following meanings:

 

	 	“Agreement”	means this agreement, together with any amendments
hereto that may be agreed in writing between the Parties after the date hereof;

 

	 	“Applicable Laws”	means, with respect to any person, any and all
applicable constitutions, treaties, statutes, laws, by-laws, regulations, ordinances, codes, rules, rulings, judgments, rules of common
law, orders, decrees, awards, injunctions or any form of decisions, determinations or requirements of or made or issued by, governmental,
statutory, regulatory, administrative, supervisory or judicial authorities or bodies (including without limitation, any relevant stock
exchange or securities council) or any court, arbitrator or tribunal with competent jurisdiction to which such person is subject;

 

 

 

 

    	 	2	 

     

    

 

	 	“Business Day”	means a day other than a Saturday or Sunday
on which banks are open for commercial business in Selangor;

 

	 	“Completion” 	means the performance of all the obligations
of the Parties set out in Clause 4 of this Agreement;

 

	 	“Completion Date” 	means the date of this Agreement;

 

	 	“Encumbrances” 	means a mortgage, charge, pledge, lien, option,
restriction, equity, right to acquire, right of pre-emption, third party right or interest, other encumbrance or security interest of
any kind or any other type of preferential arrangement (including, without limitation, a title transfer and retention arrangement) having
similar effect and “Encumbrance” shall be construed accordingly;

 

	 	“Intellectual Property” 	includes patents, inventions, know-how, trade
secrets and other confidential information, registered designs, copyrights, data, database rights, design rights, rights affording equivalent
protection to copyright, database rights and design rights, semiconductor topography rights, trade marks, service marks, logos, domain
names, e-mail address names, business names, trade names, moral rights, and all registrations or applications to register any of the
aforesaid items, rights under licences, consents, orders, statutes or otherwise in relation to any of the aforesaid items, rights in
the nature of any of the aforesaid items, in any country or jurisdiction, rights in the nature of unfair competition rights and rights
to sue for passing-off;

 

	 	“RM”
or “Ringgit Malaysia” 	means the legal currency of Malaysia;

 

 

	 	“Ordinary Shares” 	means the fully paid-up ordinary shares each
in the paid-up share capital of the Company, and “Ordinary Share” shall be construed accordingly;

 

	 	“Purchaser’s Warranties” 	means the representations and warranties given
by the Purchaser, as set out in Clause 5.2 of this Agreement and “Purchaser Warranty” shall be construed accordingly;

 

	 	“Sale Shares” 	means Forty-Nine Million Eight Hundred Twenty
Thousand Eight Hundred Sixty-One (49,820,861) Ordinary Shares held by the Vendor immediately prior to the Completion, equivalent to approximately
99.64% of the Company's issued and paid-up share capital as of the date of this Agreement; and

 

	 	“Vendor’s Warranties” 	means the representations and warranties given
by the Vendor, as set out in Clause 5.1 and Schedule 3 of this Agreement and “Vendor Warranty” shall
be construed accordingly.

  

 

 

 

    	 	3	 

     

    

 

		1.2	Interpretation

 

In this Agreement, unless the context otherwise requires:

 

		1.2.1	words and phrases which are defined or referred to in or for the
purposes of the Companies Act 2016 have the same meanings in this Agreement (unless otherwise expressly defined in this Agreement);

 

		1.2.2	reference to a statutory provision includes reference to:

 

		(a)	any order, regulation, statutory instrument or other subsidiary
legislation at any time made under it for the time being in force (whenever made);

 

		(b)	any modification, amendment, consolidation, re-enactment or replacement
of it or provision of which it is a modification, amendment, consolidation, re-enactment or replacement except to the extent that any
modification, amendment, consolidation, re-enactment or replacement made after the date of this Agreement would increase the liability
of any of the Parties hereto;

 

		1.2.3	reference to a Clause, Schedule or Paragraph is to a clause, schedule or a paragraph
of a schedule of or to this Agreement respectively;

 

		1.2.4	reference to the Parties to this Agreement includes their respective successors,
heirs, permitted assigns and personal representatives;

 

		1.2.5	reference to any gender includes the other genders;

 

		1.2.6	reference to persons includes bodies corporate or unincorporated;

 

		1.2.7	the index, headings and any descriptive notes are for ease of reference only and
will not affect the construction or interpretation of this Agreement;

 

		1.2.8	this Agreement incorporates the Schedules and Annexures to it;

 

		1.2.9	any reference to "pay", or cognate expressions, includes payments made
in cash or effected through inter-bank transfer to the account of the payee, giving the payee access to immediate available, freely transferable,
cleared funds; and

 

		1.2.10	No provision of this Agreement will be construed adversely to a Party solely on
the ground that the Party was responsible for the preparation of this Agreement or that provision.

 

		2.	AGREEMENT FOR SALE AND PURCHASE OF SALE SHARES

 

		2.1	Subject to the terms and conditions of this Agreement:

 

		(a)	the Vendor shall sell and transfer to the Purchaser the Sale Shares with full title
guarantee and free from all Encumbrances and together with all rights and benefits attaching thereto; and

 

 

 

 

    	 	4	 

     

    

 

		(b)	Purchaser shall purchase and accept the transfer of the Sale Shares from Vendor free
from all Encumbrances and together with all rights and benefits attaching thereto;

 

on the Completion Date.

 

		3.	CONSIDERATION

 

		3.1	The purchase consideration for the sale, purchase and transfer of the Sale Shares
shall be an aggregate sum of Ringgit Malaysia Once Thousand (RM1,000-00) only (“Purchase Consideration”) payable
by the Purchaser to the Vendor on Completion Date. The payment of Purchase Consideration shall be paid in cash by the Purchaser by way
of cheque or electronic transfer of immediately available funds to the Vendor or such other mode of payment as may be agreed by the Parties,
on the Completion Date.

 

		4.	COMPLETION

 

		4.1	Completion will take place on the Completion Date wherein the Vendor shall comply
with the provisions in Schedule 2 of this Agreement.

 

		4.2	Upon Completion, the Vendor shall cause all of the Sale Shares to be registered
in the name of the Purchaser as soon as reasonably possible in accordance with Applicable Laws. The Vendor shall do such acts, deeds and
things as may be reasonably requested by the Purchaser to cause the Sale Shares to be registered as aforesaid.

 

		4.3	In the event the Purchaser does not comply with Clause 3.1, the Vendor may
without prejudice to any other rights it has:

 

		(a)	defer Completion to a date no more than thirty (30) days after the date on which Completion
would otherwise have taken place; or

 

		(b)	terminate this Agreement by notice in writing to the Purchaser.

 

		4.4	Notwithstanding the foregoing provisions of this Clause 4, the Vendor shall
be entitled to take such action in law as may be necessary to compel the Purchaser by way of specific performance to complete the transaction
contemplated in this Agreement, in which respect the alternative remedy of monetary compensation shall not be regarded as compensation
or sufficient compensation for any default in the performance of the terms and conditions herein.

 

		5.	WARRANTIES

 

		5.1	Vendor’s Warranties

 

		5.1.1	The Vendor warrants and undertakes to the Purchaser that, as at the Completion Date,
each of the statements set out in Schedule 3 will be true, fair, accurate and complete in all respects and, to the best of their knowledge,
information and belief, not misleading.

 

 

 

 

    	 	5	 

     

    

 

		5.1.2	In the event the Vendor become aware of any event which occurs or matter which arises
which results or may result in any of the Vendor’s Warranties being untrue or incorrect, the Vendor shall immediately notify the
Purchaser in writing fully thereof.

 

		5.1.3	The Vendor acknowledges and agrees that the Purchaser has entered into this Agreement
in full reliance upon and on the basis of each of the Vendor’s Warranties contained herein. Each of the Vendor’s Warranties
is to be construed as a separate and independent warranty and (except where this Agreement provides otherwise) will not be limited or
restricted by reference to or inference from any other term of this Agreement or any other Warranty.

 

		5.1.4	The rights and remedies of the Purchaser in respect of any breach of any of the

Vendor’s Warranties will survive Completion of this
Agreement.

 

		5.1.5	The Vendor waives and may not enforce any right which it may have in respect of
any misrepresentation, inaccuracy or omission in or from any information or advice supplied or given by the Company or its officers or
employees in enabling the Vendor to give the Vendor’s Warranties.

 

		5.2	Purchaser’s Warranties

 

		5.2.1	The Purchaser hereby warrants and undertakes to the Vendor the following are true,
fair and accurate in all respects at the Completion Date, to the best of his knowledge, information and belief, not misleading:

 

		(a)	he is not a bankrupt;

 

		(b)	he has full power and authority enter into this Agreement and perform his obligations
herein;

 

		(c)	the execution and delivery of this Agreement and performance of the obligations
contained herein by the Purchaser will not violate any applicable laws or documents to which the Purchaser is a party or by which it is
bound; and

 

		(d)	the Purchaser is in compliance with all anti-money laundering laws and regulations
that are in force and has not violated any anti-money laundering laws and regulations and no action, suit or proceeding by or before any
court, governmental authority, body or otherwise involving the Purchaser with respect to anti-money laundering laws and regulations is
pending or threatened.

 

		5.2.2	The Purchaser acknowledges and agrees that the Vendor has entered into this Agreement
in reliance on the Purchaser’s Warranties. Each of the Purchaser’s Warranties is separate and is to be construed independently
of the others.

 

		5.2.3	Notwithstanding Completion, the Purchaser’s Warranties, indemnities and undertakings given by the Purchaser shall continue thereafter
to subsist for so long as may be necessary for the purpose of giving effect to
each and every clause in accordance with the terms thereof.

 

 

 

 

    	 	6	 

     

    

 

		5.2.4	In the event the Purchaser become aware of any event which occurs or matter which
arises which results or may result in any of the Purchaser’s Warranties being untrue or incorrect, the Purchaser shall immediately
notify the Vendor in writing fully thereof.

 

		5.3	Breach of Warranties

 

Notwithstanding
any provisions to the contrary in this Agreement, each Party shall indemnify the other Party (“Non-Defaulting Party”)
from and against any and all losses, liabilities, costs or expenses suffered or incurred by the Non-Defaulting Party directly or indirectly
as a result of a breach of any of the warranties by the defaulting Party and which, if capable of rectification, has not been rectified
by the defaulting Party within thirty (30) days, or such longer period as may be mutually agreed between the Parties. For the avoidance
of any doubt, this rights to indemnification herein shall survive the Completion.

 

		6.	COVENANTS & UNDERTAKINGS

 

		6.1	The Vendor undertakes to and covenants with the Purchaser that the Vendor will not
at any time after the date of this Agreement do, permit or say anything which is likely or intended to damage the goodwill or reputation
of the Company or of any business carried on by the Company or which may lead any person to cease to do business with the Company on substantially
equivalent terms to those previously offered or not to engage in business with the Company.

 

		6.2	Each Party agrees and acknowledges that the undertakings contained in Clause
6 are fair and reasonable and necessary but, in the event that any such provision is found to be void or unenforceable but would be
valid and effective if some part or parts of the provision were deleted, such provision will apply with such deletion as may be necessary
to make it valid and effective.

 

		7.	TERMINATION

 

		7.1	If a Party (“Defaulting Party”) commits or is made to be bound by any of the following
(each referred to as “Event of Default”):
-

 

		(a)	in default or commits any breach of its obligations under this Agreement and, if
remediable, fails to take all necessary action to remedy such breach within thirty (30) days after the service of notice by the non-defaulting
Party complaining of such breach;

 

		(b)	goes into liquidation or shall have a judicial manager receiver or similar officer
appointed in respect of or any encumbrance taking possession of any material part of its assets and/or undertaking;

 

		(c)	becomes insolvent or bankrupt; or

 

		(d)	have a distress or execution levied or enforced upon or taken out against any material
part of its property and the same shall not be discharged within fourteen (14) days thereof,

 

 

 

 

    	 	7	 

     

    

 

in any such event the non-defaulting
Party may, without prejudice to such other rights and remedies as it may have against the other which are subsisting at the time of the
Event of Default, forthwith terminate this Agreement or seek specific performance of the provisions herein and claim damages.

 

		7.2	For the avoidance of doubt, if the non-defaulting Party elect to terminate this
Agreement, this Agreement shall be deemed null and void and of no effect whereupon the Parties shall do all things necessary to restore
each other to their original position as if they had not entered into this Agreement and the transactions contemplated hereunder, save
and except for any antecedent breach by the Party and any clauses intended to survive termination which shall continue to have full force
and effect notwithstanding the termination of this Agreement.

 

		8.	NOTICES

 

		8.1	A notice, request, demand, consent or approval (each a notice) required
to be given under this Agreement:

 

		8.1.1	must be in writing and in English;

 

		8.1.2	may be signed for the Party giving it by the Party’s authorised officer, attorney or

solicitor; and

 

		8.1.3	may be delivered personally to the person to whom it is addressed, or left at or
sent by prepaid registered post to the person’s address or emailed in accordance with the addressee’s email details, given
below:

 

If to the Vendor:

 

		Address:	1st Floor Block A, Axis Business
Campus, No.13A & 13B, Jalan 225, Section 51A, 46100 Petaling Jaya, Selangor, Malaysia

 

If to the Purchaser:

 

		Address:	No 14, Jalan BK4/3E, Bandar Kinrara 4, 47100 Puchong, Selangor

 

		8.2	The notice is deemed to be served by the sender and received by the addressee if:

 

		8.2.1	by delivery in person, when delivered to the addressee;

 

		8.2.2	by prepaid registered post, five (5) Business Days from the date of postage;

 

		8.2.3	by courier service, at the time of the addressee’s receipt; or

 

but if delivery or receipt is on a day which is not a Business
Day or is after 5.00 pm at the place of delivery or receipt, it is deemed received at 9.00 am on the next Business Day.

 

		8.3	The Parties hereto shall promptly notify each other of any changes in the above
details which shall be substituted for the above from the date of such notification.

 

		8.4	In proving the giving of a notice or any other document under or in respect of
this Agreement it is sufficient to show:

 

 

 

    	 	8	 

     

    

 

		8.4.1	in the case of prepaid registered post, that the notice or other document was duly
addressed and posted, postage prepaid; and

 

		8.4.2	in the case of hand delivery, that the notice or other document was duly acknowledged
receipt by the intended recipient.

 

		9.	CONFIDENTIALITY

 

		9.1	The Parties agree that the contents of this Agreement and all information provided
by one Party to the other Party in connection with this Agreement or in the course of the negotiations of this Agreement and all information
concerning the matters contemplated in this Agreement (“Confidential Information”) shall, unless such information is
required for the purpose of performing the Parties’ obligations contemplated in this Agreement or if disclosure is required by law,
be held in strict confidence by each Party and its respective officers, employees, agents, advisers and servants and shall not be made
known to any other party without prior written consent of the Parties.

 

		9.2	Nothing in this Agreement shall restrict the Parties’ right to use, disclose or otherwise deal

with any of the Confidential Information
in any of the following circumstances:

 

		(a)	if and to the extent that such Confidential Information was in the public domain
at the time that it was made known to a Party or subsequently becomes so otherwise than as a result of a breach of the provisions of this
Agreement by the Party; or

 

		(b)	if such disclosure is required by law or by an order of a court of competent jurisdiction.

 

		9.3	This restriction shall continue to apply after Completion or sooner termination
of this Agreement without limit in point of time but shall cease to apply to information or knowledge which may properly come into the
public domain through no fault of the Parties so restricted.

 

		10.	FURTHER ASSURANCE

 

On and after the Completion Date,
each Party shall do and execute or procure to be done and executed all such acts, deeds, documents and things as may be necessary to give
effect to this Agreement.

 

		11.	COSTS

 

Unless otherwise provided, each
Party shall bear its own costs and expenses in connection with the negotiation, preparation, execution and performance of this Agreement.
All costs and stamp duty payable in respect of the transfer of the Sale Shares to the Purchaser shall be borne by the Purchaser, including
the stamp duty payable on this Agreement.

 

		12.	SUCCESSORS AND ASSIGNMENT

 

		12.1	This Agreement will be binding on and enure for the benefit of each Party’s successors and personal representatives.

 

		12.2	Except as otherwise expressly provided, all rights and benefits under this Agreement
are personal to the Parties and may not be assigned at law or in equity without the prior written consent of the other Party.

 

 

 

 

    	 	9	 

     

    

 

		13.	TIME OF ESSENCE

 

Except as otherwise expressly provided,
time is of the essence of this Agreement.

 

		14.	VARIATIONS

 

No variation of this Agreement or
any of the documents in the agreed form will be valid unless it is in writing and signed by or on behalf of each of the Parties to this
Agreement.

 

		15.	WAIVER

 

No waiver by any Party of any breach
or non-fulfilment of any provisions of this Agreement will be deemed to be a waiver of any subsequent or other breach of that or any other
provision and no failure to exercise or delay in exercising any right or remedy under this Agreement will constitute a waiver of the relevant
provision or provisions of this Agreement. No single or partial exercise of any right or remedy under this Agreement will preclude or
restrict the further exercise of any such right or remedy. The rights and remedies of the Parties provided in this Agreement are cumulative
and not exclusive of any rights and remedies provided by law.

 

		16.	AGREEMENT CONTINUES IN FORCE

 

This Agreement will remain in full
force and effect so far as concerns any matter remaining to be performed at Completion even though Completion will have taken place.

 

		17.	SEVERABILITY

 

The invalidity, illegality or unenforceability
of any provisions of this Agreement will not affect the continuation in force of the remainder of this Agreement.

 

		18.	COUNTERPARTS

 

This Agreement may be executed in
any number of counterparts each of which when executed by one or more of the Parties to this Agreement will constitute an original but
all of which will constitute one and the same instrument.

 

		19.	GOVERNING LAW AND JURISDICTION

 

		19.1	This Agreement is governed by and construed in accordance with the laws of Malaysia.

 

		19.2	Any dispute arising out of or in connection with this Agreement, including any question
regarding its existence, validity or termination, shall be referred to the exclusive jurisdiction of the Courts of Malaysia.

 

		20.	ENTIRE AGREEMENT

 

This Agreement constitutes the entire
agreement between the Parties in respect of the subject matter and transaction contemplated therein and supersedes all previous agreements,
arrangements and undertakings (if any) between the Parties.

 

[The remainder of this page is intentionally left blank]

 

 

 

    	 	10	 

     

    

 

SCHEDULE 1

 

Particulars of the Company

 

 

	1	Company: 	MIG MOBILE TECH BERHAD

                            

	2	Company number:  	201501035448 (1160768-U)

         

	3.	Date of incorporation: 	1 October 2015

         

	4.	Registered address: 	2-25, The Cube, Jalan Puteri 7/15, Bandar Puteri, 47100 Puchong, Selangor

         

	5.	Issued and paid-up share capital: 	RM50,000,000.00 consisting of 50,000,000 Ordinary Shares

         

	6.	Nature of business: 	Retail sale of any kind of product and accessories

         

	7.	Auditors: 	Total Asia Associates PLT

 

 

 

[The remainder of this page is intentionally left blank]

 

 

 

 

 

    	 	11	 

     

    

 

SCHEDULE 2

 

Completion

 

		1.	The Vendor shall deliver or procure to be delivered the following to the Purchaser:

 

		(a)	duly executed, valid and registrable share transfer form in respect of the transfer
of Sale Shares in favour of the Purchaser;

 

		(b)	the original share certificates in respect of the Sale Shares; and

 

		(c)	such other documents and things as the Purchaser may properly and reasonably request
to implement the transactions as contemplated herein.

 

 

 

[The remainder of this page is intentionally left blank]

 

 

 

 

    	 	12	 

     

    

 

SCHEDULE 3

 

Vendor’s Warranties

 

The Vendor warrants and undertakes to the Purchaser that:

 

		1.1	The information as contained in the Recital are true and accurate.

 

		1.2	It is the registered and beneficial holder of their respective Sale Shares.

 

		1.3	It has full power and authority and have taken all action necessary to execute and
deliver and to exercise their rights and perform their obligations under this Agreement.

 

		1.4	The Sale Shares constitute part of the issue and paid-up share capital of the Company
and have been properly issued and registered.

 

		1.5	There is no Encumbrance on, over or affecting the Sale Shares or any registered
shares in the capital of the Company and there is no agreement or commitment to give or create any such Encumbrance or negotiations which
may lead to such an agreement or commitment and no claim has been made by any person to be entitled to such an Encumbrance.

 

		1.6	It is entitled to sell and transfer the full legal and beneficial ownership in the
Sale Shares to the Purchaser and such sale will not result in any breach of or default under any agreement or other obligation binding
upon the Vendor or any of their property.

 

 

[The remainder of this page is intentionally left blank]

 

 

 

    	 	13	 

     

    

 

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

 

	VENDOR	 	 
	 	 	 
	Signed by	)	 
	WEE SHIONG HAN	)	 
	(NRIC No. 770909-04-5421)	)	/s/ Wee Shiong Han
	For and on behalf of	)	 
	WECONNECT TECH INTERNATIONAL INC	)	 
	(Company No.: E0292012007-4)	(	 
	 	 	 
	In the presence of:	 	 
	 	 	 
	 	 	 
	PURCHASER	 	 
	 	 	 
	Signed by	 	 
	NG CHEE CHUN	 	/s/ Ng Chee Chun
	(NRIC No.: 650921-06-5285)	 	 
	 	 	 
	In the presence of:	 	 
	 	 	 

 

 

 

    	 	14EXHIBIT 4.6

 

NEITHER THIS DEBENTURE NOR THE SECURITIES
INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

KONA GOLD BEVERAGE, INC.

 

Secured Convertible Debenture

 

Principal Amount:$1,500,000.00

Original Issue Discount: 4%

Debenture Issuance Date: August 20, 2021

Debenture Number: KGKG 4 1-2

 

FOR VALUE RECEIVED,
KONA GOLD BEVERAGE, INC., a Delaware corporation (the “Company”), hereby promises to pay to the order of YA
II PN, Ltd., or its registered assigns (the “Holder”), the amount set out above as the Principal Amount (as
reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”) when
due, whether upon the Maturity Date (as defined below), acceleration, redemption, or otherwise (in each case in accordance with
the terms hereof) and to pay interest (“Interest”) on any outstanding Principal at the applicable Interest Rate
from the date set out above as the Debenture Issuance Date (the “Issuance Date”) until the same becomes due
and payable, whether upon the Maturity Date or acceleration, conversion, redemption or otherwise (in each case in accordance with
the terms hereof). This Convertible Debenture (including all debentures issued in exchange, transfer, or replacement hereof; this
“Debenture”) was originally issued pursuant to the Securities Purchase Agreement dated August 20, 2021, as amended
(the “Securities Purchase Agreement”) between the Company and the Buyers listed on the Schedule of Buyers attached
thereto. Certain capitalized terms used herein are defined in Section (14).

 

(1)              
GENERAL TERMS

 

(a)               
Maturity Date. On the Maturity Date, the Company shall pay
to the Holder an amount in cash representing all outstanding Principal, accrued and unpaid Interest, and any other amounts outstanding
pursuant to the terms of this Debenture. The “Maturity Date” shall be August 20, 2022, as may be extended
at the option of the Holder. Other than as specifically permitted by this Debenture, the Company may not prepay or redeem any portion
of the outstanding Principal and accrued and unpaid Interest. 

 

    	 

    	 

    

 

(b)              
Interest Rate and Payment of Interest. Interest shall accrue on the outstanding Principal
balance hereof at an annual rate equal to 8% (the “Interest Rate”), which Interest Rate shall increase to an
annual rate equal to 15% for so long as any Event of Default remains uncured. Interest shall be calculated on the basis of a 365-day
year and the actual number of days elapsed, to the extent permitted by applicable law.

 

(c)               
Original Issue Discount. The Original Principal Amount of this Debenture shall have
an original issue discount of 4% (the “OID”) that the Holder shall be entitled to deduct from the gross proceeds
of the original Principal Amount when this Debenture was issued.

 

(d)              
Security and Guaranty. This Debenture is secured by (i)
a security interest in all of the assets of the Company and of each of the Company’s subsidiaries pursuant to the
Security Agreement by and among the Company, its wholly owned subsidiaries and the Investor, dated May 14, 2020 that was amended
and restated as of February 10, 2021 and now as of the date hereof (all of such security agreements shall be referred to collectively
as the “Security Agreement”) and (ii) the Intellectual Property Security Agreement by and among the Investor,
the Company, and the Company’s subsidiaries referenced therein, dated May 14, 2020, the Intellectual Property Security Agreement
by and among the Investor, the Company, and the Company’s subsidiaries, dated February 10, 2021 and the Intellectual Property
Security Agreement by and among the Investor, the Company, and the Company’s subsidiaries, the date hereof (all of such intellectual
property security agreements shall be referred to collectively as the “IP Security Agreement”), and is subject
to a global guarantee pursuant to the Global Guaranty Agreement by and among the Investor and each of the Company’s wholly
owned subsidiaries, dated May 14, 2020 that was amended and restated as of February 10, 2021 and now as of the date hereof, (the
“Guaranty”; and, collectively, with the Security Agreement and the IP Security Agreement shall be collectively
referred to as the “Security Documents”).

 

(2)              
Optional Redemption. The Company has the right, but not the obligation, to redeem (an
“Optional Redemption”) any or all amounts outstanding under this Debenture at any time or from time to time,
as described in this Section; provided, that (i) the VWAP of the Common Stock, is less than the Fixed Conversion Price and
(ii) the Company provides the Holder with at least 15 Business Days’ prior written notice (each, a “Redemption Notice”)
of its desire to exercise an Optional Redemption. Each Redemption Notice shall be irrevocable and shall specify the outstanding
balance of the Debenture to be redeemed and the applicable Redemption Premium. The “Redemption Amount” shall
be equal to the outstanding Principal balance being redeemed by the Company, plus the applicable Redemption Premium, plus all accrued
and unpaid interest. After receipt of the Redemption Notice, the Holder shall have 15 Business Days to elect to convert all or
any portion of this Debenture. On the 16th Business Day after the Redemption Notice, the Company shall deliver to the Holder the
Redemption Amount with respect to the Principal amount redeemed after giving effect to conversions effected during the 15 Business
Day period. 

 

(3)              
EVENTS OF DEFAULT. 

 

(a)               
An “Event of Default” means any one of the following events (whatever the
reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree, or
order of any court, or any order, rule, or regulation of any administrative or governmental body):

 

    	2

    	 

    

 

(i)                
the Company’s failure to pay to the Holder any amount of Principal, Interest, or other
amounts when and as due under this Debenture or any other Transaction Document within five (5) Business Days after such payment
is due;

 

(ii)              
The Company or any subsidiary of the Company shall commence, or there shall be commenced against
the Company or any subsidiary of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or
any successor thereto, or the Company or any subsidiary of the Company shall commence any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency, or liquidation or similar law of any jurisdiction
whether now or hereafter in effect relating to the Company or any subsidiary of the Company or there shall be commenced against
the Company or any subsidiary of the Company any such bankruptcy, insolvency or other proceeding that remains undismissed for a
period of sixty-one (61) days; or the Company or any subsidiary of the Company shall be adjudicated insolvent or bankrupt; or any
order of relief or other order approving any such case or proceeding is entered; or the Company or any subsidiary of the Company
shall suffer any appointment of any custodian, private or court appointed receiver, or the like for it or any substantial part
of its property, that continues undischarged or unstayed for a period of sixty-one (61) days; or the Company or any subsidiary
of the Company shall make a general assignment for the benefit of creditors; or the Company or any subsidiary of the Company shall
fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the
Company or any subsidiary of the Company shall call a meeting of its creditors with a view to arranging a composition, adjustment,
or restructuring of its debts; or the Company or any subsidiary of the Company shall by any act or failure to act expressly indicate
its consent to, approval of, or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company
or any subsidiary of the Company for the purpose of effecting any of the foregoing;

 

(iii)            
The Company or any subsidiary of the Company shall default in any of its obligations under
any other debenture or any mortgage, credit agreement, or other facility, indenture agreement, factoring agreement, or other instrument
under which there may be issued, or by which there may be secured or evidenced, any indebtedness for borrowed money or money due
under any long-term leasing or factoring arrangement of the Company or any subsidiary of the Company in an amount exceeding $100,000,
whether such indebtedness now exists or shall hereafter be created and such default is not cured within five (5) Business Days;

 

(iv)            
The Common Stock shall cease to be quoted or listed for trading, as applicable, on any Primary
Market for a period of 10 consecutive Trading Days;

 

(v)              
The Company or any subsidiary of the Company shall be a party to any Change of Control Transaction
(as defined in Section (14)) unless, in connection with such Change of Control Transaction, this Debenture is retired; 

 

    	3

    	 

    

 

(vi)            
the Company’s (A) failure to deliver the required number of shares of Common Stock to
the Holder within two (2) Trading Days after the applicable Delivery Date or (B) notice, written or oral, to any holder of the
Debenture, including by way of public announcement, at any time, of its intention not to comply with a request for conversion of
any Debenture into shares of Common Stock that is tendered in accordance with the provisions of this Debenture, other than pursuant
to Section 5(c);

 

(vii)          
The Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In
(as defined in Section (4)(b)(ii)) within five (5) Business Days after such payment is due; 

 

(viii)        
The Company shall fail to observe or perform any other material covenant, agreement, or warranty
contained in, or otherwise commits any material breach or default of any provision of this Debenture (except as may be covered
by Section (3)(a)(i) through (3)(a)(ix) hereof) or any Transaction Document (as defined in Section (14)) that is not cured within
the time prescribed.

 

(ix)            
any Event of Default (as defined in the Other Debentures) occurs with respect to any of the
Other Debentures.

 

(b)              
During the time that any portion of this Debenture is outstanding, if any Event of Default
has occurred and is continuing, the full unpaid Principal amount of this Debenture, together with Interest and other amounts owing
in respect thereof, to the date of acceleration shall become at the Holder’s election, immediately due and payable in cash.
Furthermore, in addition to any other remedies, the Holder shall have the right (but not the obligation) to convert this Debenture
(subject to the beneficial ownership limitations set out in Section  (4)(c)) at any time (x)
after an Event of Default (provided that such Event of Default has not been cured, during the applicable cure period, if any, and
is continuing) at the Conversion Price or (y) on the Maturity Date at the Conversion Price. The Holder need not provide, and the
Company hereby waives, any presentment, demand, protest, or other notice of any kind (other than required notice of conversion)
and the Holder may immediately enforce any and all of its rights and remedies hereunder and all other remedies available to it
under applicable law. Such declaration may be rescinded and annulled by Holder at any time prior to payment hereunder. No such
rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon. 

 

(4)              
CONVERSION OF DEBENTURE.This Debenture shall be convertible into shares of the
Company’s Common Stock, on the terms and conditions set forth in this Section  (4).

 

(a)               
Conversion Right. Subject to the limitations of Section  (4)(c),
at any time or times on or after the Issuance Date, the Holder shall be entitled to convert any portion of the outstanding and
unpaid Conversion Amount (as defined below) into fully paid and nonassessable shares of Common Stock in accordance with Section
 (4)(b), at the Conversion Rate (as defined below). The number of shares of Common Stock issuable
upon conversion of any Conversion Amount pursuant to this Section  (4)(a) shall be determined
by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”). The Company shall
not issue any fraction of a share of Common Stock upon any conversion. All calculations under this Section  (4)
shall be rounded to the nearest $0.0001. If the issuance would result in the issuance of a fractional share of Common Stock, the
Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer,
stamp, and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion
Amount. 

 

    	4

    	 

    

 

(i)                
“Conversion Amount” means the portion of the Principal and accrued Interest
to be converted, redeemed or otherwise with respect to which this determination is being made.

 

(ii)              
“Conversion Price” means, as of any Conversion Date (as defined below)
or other date of determination the lower of (i) $0.03 (the “Fixed Conversion Price”) or (ii) 75% of the lowest
daily VWAP during the 15 consecutive Trading Days immediately preceding the Conversion Date or other date of determination (the
“Variable Conversion Price”). The Conversion Price shall be adjusted from time to time pursuant to the other
terms and conditions of this Debenture. 

 

(b)              
Mechanics of Conversion.

 

(i)                
Optional Conversion. To convert any Conversion Amount into shares of Common Stock on
any date (a “Conversion Date”), the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt
on or prior to 11:59 p.m., New York Time, on such date, a copy of an executed notice of conversion in the form attached hereto
as Exhibit I (the “Conversion Notice”) to the Company and (B) if required by Section (4)(b)(iii), surrender
this Debenture to a nationally recognized overnight delivery service for delivery to the Company (or an indemnification undertaking
reasonably satisfactory to the Company with respect to this Debenture in the case of its loss, theft or destruction). On or before
the third (3rd) Trading Day following the date of receipt of a Conversion Notice (the “Share Delivery Date”),
the Company shall (X) if legends are not required to be placed on certificates of Common Stock and provided that the Transfer Agent
is participating in the Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer Program,
credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s
balance account with DTC through its Deposit Withdrawal Agent Commission system or (Y) if the Transfer Agent is not participating
in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the Conversion Notice,
a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder
shall be entitled, which certificates shall not bear any restrictive legends unless required pursuant to rules and regulations
of the Commission. If this Debenture is physically surrendered for conversion and the outstanding Principal of this Debenture is
greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and
in no event later than three (3) Business Days after receipt of this Debenture and at its own expense, issue and deliver to the
holder a new Debenture representing the outstanding Principal not converted. The Person or Persons entitled to receive the shares
of Common Stock issuable upon a conversion of this Debenture shall be treated for all purposes as the record holder or holders
of such shares of Common Stock upon the transmission of a Conversion Notice.

 

    	5

    	 

    

 

(ii)              
Company’s Failure to Timely Convert. If within three (3) Trading Days after the
Company’s receipt of an e-mail copy of a Conversion Notice, the Company shall have failed to issue and deliver a certificate
to the Holder or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder
is entitled upon such holder’s conversion of any Conversion Amount (a “Conversion Failure”), and, if on
or after such Trading Day the Holder shall have purchased (in an open market transaction or otherwise) Common Stock to deliver
in satisfaction of a sale by the Holder of Common Stock issuable upon such conversion that the Holder anticipated receiving from
the Company (a “Buy-In”), then the Company shall, within three (3) Business Days after the Holder’s request
and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase
price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (the
“Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and
to issue such Common Stock) shall terminate or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates
representing such Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the
product of (A) such number of shares of Common Stock, multiplied by (B) the Closing Bid Price on the Conversion Date.

 

(iii)            
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion
of any portion of this Debenture in accordance with the terms hereof, the Holder shall not be required to physically surrender
this Debenture to the Company unless (A) the full Conversion Amount represented by this Debenture is being converted or (B)
the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting
reissuance of this Debenture upon physical surrender of this Debenture. The Holder and the Company shall maintain records showing
the Principal and Interest converted and the dates of such conversions or shall use such other method, reasonably satisfactory
to the Holder and the Company, so as not to require physical surrender of this Debenture upon conversion.

 

(c)               
Limitations on Conversions.

 

(i)                
Beneficial Ownership. The Holder shall not have the right to convert any portion of
this Debenture or receive shares of Common Stock hereunder if, after giving effect to such conversion or receipt of such Shares,
the Holder, together with any affiliate thereof, would beneficially own (as determined in accordance with Section 13(d) of the
Exchange Act and the rules promulgated thereunder) in excess of 4.99% of the number of shares of Common Stock outstanding immediately
after having giving effect to such conversion or receipt of shares as payment of interest. Since the Holder will not be obligated
to report to the Company the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion
at issue would result in the issuance of shares of Common Stock in excess of 4.99% of the then-outstanding shares of Common Stock
without regard to any other shares that may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have
the authority and obligation to determine whether the restriction contained in this Section will limit any particular conversion
hereunder and, if the Holder determines that the limitation contained in this Section applies, the determination of which portion
of the Principal amount of this Debenture is convertible shall be the responsibility and obligation of the Holder. If the Holder
has delivered a Conversion Notice for a Principal amount that, without regard to any other shares that the Holder or its affiliates
may beneficially own, would result in the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder
of this fact and shall honor the conversion for the maximum Principal amount permitted to be converted on such Conversion Date
in accordance with Section (4)(a) and, any Principal amount tendered for conversion in excess of the permitted amount hereunder
shall remain outstanding under this Debenture. The provisions of this Section may be waived by a Holder (but only as to itself
and not to any other Holder) upon not less than 65 days’ prior written notice to the Company. Other Holders shall be unaffected
by any such waiver.

 

    	6

    	 

    

 

(d)              
Other Provisions.

 

(i)                
The Company shall at all times reserve and keep available out of its authorized Common Stock
the full number of shares of Common Stock issuable upon conversion of all outstanding amounts under this Debenture; and within
three (3) Business Days following the receipt by the Company of a Holder’s written notice that such minimum number of Underlying
Shares is not so reserved, the Company shall promptly reserve a sufficient number of shares of Common Stock to comply with such
requirement.

 

(ii)              
All calculations under this Section (4) shall be rounded to the nearest $0.0001 or whole share.

 

(iii)            
The Company covenants that it will at all times reserve and keep available out of its authorized
and unissued shares of Common Stock solely for the purpose of issuance upon conversion of this Debenture and payment of interest
on this Debenture, each as herein provided, free from preemptive rights or any other actual, contingent purchase rights of persons
other than the Holder, not less than such number of shares of the Common Stock as shall be issuable (taking into account the adjustments
and restrictions set forth herein) upon the conversion of the outstanding Principal and payment of Interest hereunder. The Company
covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued,
and fully paid, nonassessable, and, if the Underlying Shares Registration Statement has been declared effective under the Securities
Act, registered for public sale in accordance with such Underlying Shares Registration Statement.

 

(iv)            
Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event
of Default pursuant to Section (3) herein for the Company’s failure to deliver certificates representing shares of Common
Stock upon conversion within the period specified herein and such Holder shall have the right to pursue all remedies available
to it at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief, in each case
without the need to post a bond or provide other security. The exercise of any such rights shall not prohibit the Holder from seeking
to enforce damages pursuant to any other Section hereof or under applicable law. 

 

(5)  
ADJUSTMENTS TO THE FIXED CONVERSION PRICE.

 

(a)               
Adjustment of Fixed Conversion Price upon Issuance of Common Stock. If the Company,
at any time while this Debenture is outstanding, issues or sells, or in accordance with this Section 5(a) is deemed to have issued
or sold, any shares of Common Stock, excluding shares of Common Stock deemed to have been issued or sold by the Company in connection
with an issuance of Excluded Securities, for a consideration per share (the “New Issuance Price”) less than
a price equal to the Fixed Conversion Price in effect immediately prior to such issue or sale (such price the “Applicable
Price”) (the foregoing, a “Dilutive Issuance”), then immediately after such Dilutive Issuance the
Fixed Conversion Price then in effect shall be reduced (and in no event increased) to a Fixed Conversion Price equal to the quotient
obtained by dividing:

 

    	7

    	 

    

 

		(X)	the sum of (A) the product obtained by multiplying the number
of shares of Common Stock issued and outstanding immediately prior to such issuance or sale (or deemed issuance or sale) by the
Fixed Conversion Price then in effect plus (B) the aggregate consideration, if any, received by the Company upon such
issuance or sale (or deemed issuance or sale); by

 

		(Y)	the sum of (A) the number of shares of Common Stock outstanding immediately prior to such issuance
or sale (or deemed issuance or sale) plus (B) the aggregate number of shares of Common Stock issued or sold (or deemed issued
or sold) by the Company in such issuance or sale (or deemed issuance or sale).

 

For purposes of determining
the adjusted Fixed Conversion Price under this Section 5(a), the following shall be applicable:

 

(i)                
Issuance of Options. If the Company in any manner grants or sells any Options and the
lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion
or exchange or exercise of any Convertible Securities issuable upon exercise of such Option is less than the Applicable Price,
then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of
the granting or sale of such Option for such price per share. For purposes of this Section, the “lowest price per share for
which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion or exchange or exercise of
any Convertible Securities issuable upon exercise of such Option” shall be equal to the sum of the lowest amounts of consideration
(if any) received or receivable by the Company with respect to any one share of Common Stock upon the grant or sale of the Option,
upon exercise of the Option and upon conversion or exchange or exercise of any Convertible Securities issuable upon exercise of
such Option. No further adjustment of the Conversion Price shall be made upon the actual issuance of such share of Common Stock
or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such Common Stock upon conversion
or exchange or exercise of such Convertible Securities.

 

(ii)              
Issuance of Convertible Securities. If the Company in any manner issues or sells any
Convertible Securities and the lowest price per share for which one share of Common Stock is issuable upon such conversion or exchange
or exercise thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to
have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per
share. For the purposes of this Section, the “lowest price per share for which one share of Common Stock is issuable upon
such conversion or exchange or exercise” shall be equal to the sum of the lowest amounts of consideration (if any) received
or receivable by the Company with respect to any one share of Common Stock upon the issuance or sale of the Convertible Security
and upon the conversion or exchange or exercise of such Convertible Security. No further adjustment of the Fixed Conversion Price
shall be made upon the actual issuance of such share of Common Stock upon conversion or exchange or exercise of such Convertible
Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment
of the Fixed Conversion Price had been or are to be made pursuant to other provisions of this Section, no further adjustment of
the Fixed Conversion Price shall be made by reason of such issue or sale.

 

    	8

    	 

    

 

(iii)            
Change in Option Price or Rate of Conversion. If the purchase price provided for in
any Options, the additional consideration, if any, payable upon the issue, conversion, exchange or exercise of any Convertible
Securities, or the rate at which any Convertible Securities are convertible into or exchangeable or exercisable for Common Stock
changes at any time, the Fixed Conversion Price in effect at the time of such change shall be adjusted to the Conversion Price
that would have been in effect at such time had such Options or Convertible Securities provided for such changed purchase price,
additional consideration or changed conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes
of this Section, if the terms of any Option or Convertible Security that was outstanding as of the Issuance Date are changed in
the manner described in the immediately preceding sentence, then such Option or Convertible Security and the Common Stock deemed
issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such change. No adjustment
shall be made if such adjustment would result in an increase of the Conversion Price then in effect.

 

(iv)            
Calculation of Consideration Received. If any Common Stock, Options, or convertible
securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed
to be the gross amount received by the Company therefor, less placement agent fees, brokerage commissions, finder’s fees,
or the like. If any Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the
amount of the consideration other than cash received by the Company will be the fair value of such consideration, except where
such consideration consists of securities, in which case the amount of consideration received by the Company will be the Closing
Bid Price of such securities on the date of receipt thereof. If any Common Stock, Options or Convertible Securities are issued
to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount
of consideration therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving
entity as is attributable to such Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration
other than cash or securities will be determined jointly by the Company and the Holder. If such parties are unable to reach agreement
within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair
value of such consideration will be determined within five (5) Business Days after the 10th day following the Valuation
Event by an independent, reputable appraiser jointly selected by the Company and the Holder. The determination of such appraiser
shall be deemed binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne jointly
by the Company and the Holder.

 

    	9

    	 

    

 

(v)              
Integrated Transactions. In case any Option is issued in connection with the issue
or sale of other securities of the Company, together comprising one integrated transaction in which any specific consideration
or no specific consideration is allocated to such Options by the parties thereto, (1) the per-share value of the shares of Common
Stock included in such integrated transaction shall be the sole determinate as to whether the Fixed Conversion Price is to be adjusted
in accordance with the provisions of Section 5(a), above, (2) if no shares of Common Stock are included in such integrated transaction,
but shares of the Company’s preferred stock are included in such integrated transaction, then the per-share conversion price
of shares of that preferred stock shall be the sole determinate as to whether the Fixed Conversion Price is to be adjusted in accordance
with the provisions of Section 5(a), above, and (3) if no shares of Common Stock and no shares of the Company’s preferred
stock are included in such integrated transaction, but debt convertible into shares of Common Stock (whether directly or through
an intermediate step, e.g., an initial conversion of that debt into shares of the Company’s preferred stock
that, thereafter, could be converted into shares of Common Stock), then the per-share conversion price of shares of such debt shall
be the sole determinate as to whether the Fixed Conversion Price is to be adjusted in accordance with the provisions of Section
5(a), above; provided, however, that, if the exercise price of the Option is less than the Fixed Conversion Price
(after having taken into account any adjustments thereto in accordance with the provisions of (1), (2), or (3), immediately above),
then the Option exercise price shall be utilized in connection with the Fixed Conversion Price adjustment provisions of Section
5(a), above.

 

(vi)            
Treasury Shares. The number of shares of Common Stock outstanding at any given time
does not include shares owned or held by or for the account of the Company, and the disposition of any shares so owned or held
will be considered an issue or sale of Common Stock.

 

(vii)          
Record Date. If the Company takes a record of the holders of Common Stock for the purpose
of entitling them (A) to receive a dividend or other distribution payable in Common Stock, Options, or Convertible Securities or
(B) to subscribe for or purchase Common Stock, Options, or Convertible Securities, then such record date will be deemed to be the
record date as set forth in notice to stockholders for the issuance or sale of the Common Stock deemed to be issued or sold upon
the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription
or purchase, as the case may be.

 

(b)              
Adjustment of the Fixed Conversion Price upon Subdivision or Combination of Common Stock.
If the Company, at any time while this Debenture is outstanding, shall (a) pay a stock dividend or otherwise make a distribution
or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common
Stock, (b) subdivide outstanding shares of Common Stock into a larger number of shares (c) combine (including by way of reverse
stock split) outstanding shares of Common Stock into a smaller number of shares, or (d) issue by reclassification of shares of
the Common Stock any shares of capital stock of the Company, then the Fixed Conversion Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such
event and of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made
pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision,
combination, or re-classification.

 

    	10

    	 

    

 

(c)               
Purchase Rights. If at any time the Company grants, issues, or sells any Options, Convertible
Securities, or rights to purchase stock, warrants, securities, or other property pro rata to the record holders of any class of
Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights that the Holder could have acquired if the Holder had held the number of
shares of Common Stock acquirable upon complete conversion of this Debenture (without taking into account any limitations or restrictions
on the convertibility of this Debenture) immediately before the date on which a record is taken for the grant, issuance, or sale
of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined
for the grant, issue, or sale of such Purchase Rights.

 

(d)              
Other Events. If any event occurs of the type contemplated by the provisions of this
Section 5 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights, or other rights with equity features), then the Company’s Board of Directors will make an appropriate
adjustment in the Conversion Price so as to protect the rights of the Holder under this Debenture; provided, that no such
adjustment will increase the Conversion Price as otherwise determined pursuant to this Section 5.

 

(e)               
Other Corporate Events. In addition to and not in substitution for any other rights
hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled
to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”),
the Company shall make appropriate provision to ensure that the Holder will thereafter have the right to receive upon a conversion
of this Debenture, at the Holder’s option, (i) in addition to the shares of Common Stock receivable upon such conversion,
such securities or other assets to which the Holder would have been entitled with respect to such shares of Common Stock had such
shares of Common Stock been held by the Holder upon the consummation of such Corporate Event (without taking into account any limitations
or restrictions on the convertibility of this Debenture) or (ii) in lieu of the shares of Common Stock otherwise receivable upon
such conversion, such securities or other assets received by the holders of shares of Common Stock in connection with the consummation
of such Corporate Event in such amounts as the Holder would have been entitled to receive had this Debenture initially been issued
with conversion rights for the form of such consideration (as opposed to shares of Common Stock) at a conversion rate for such
consideration commensurate with the Conversion Rate. Provision made pursuant to the preceding sentence shall be in a form and substance
satisfactory to the Required Holders. The provisions of this Section shall apply similarly and equally to successive Corporate
Events and shall be applied without regard to any limitations on the conversion or redemption of this Debenture.

 

(f)               
Whenever the Fixed Conversion Price is adjusted pursuant to Section 5 hereof, the Company
shall promptly mail to the Holder a notice setting forth the Fixed Conversion Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.

 

    	11

    	 

    

 

(g)              
In case of any (1) merger or consolidation of the Company or any subsidiary of the Company
with or into another Person or (2) sale by the Company or any subsidiary of the Company of more than one-half of the assets of
the Company in one or a series of related transactions, a Holder shall have the right to (A) exercise any rights under Section
2(b), (B) convert the aggregate amount of this Debenture then-outstanding into the shares of stock and other securities, cash,
and property receivable upon or deemed to be held by holders of Common Stock following such merger, consolidation, or sale, and
such Holder shall be entitled upon such event or series of related events to receive such amount of securities, cash, and property
as the shares of Common Stock into which such aggregate principal amount of this Debenture could have been converted immediately
prior to such merger, consolidation, or sales would have been entitled, or (C) in the case of a merger or consolidation, require
the surviving entity to issue to the Holder a convertible debenture with a principal amount equal to the aggregate principal amount
of this Debenture then held by such Holder, plus all accrued and unpaid interest and other amounts owing thereon, such newly issued
convertible debenture shall have terms identical (including with respect to conversion) to the terms of this Debenture, and shall
be entitled to all of the rights and privileges of the Holder of this Debenture set forth herein and the agreements pursuant to
which this Debenture was issued. In the case of clause (C), the conversion price applicable for the newly issued shares of convertible
preferred stock or convertible debentures shall be based upon the amount of securities, cash, and property that each share of Common
Stock would receive in such transaction and the Fixed Conversion Price in effect immediately prior to the effectiveness or closing
date for such transaction. The terms of any such merger, sale, or consolidation shall include such terms so as to continue to give
the Holder the right to receive the securities, cash, and property set forth in this Section upon any conversion or redemption
following such event. This provision shall similarly apply to successive such events.

 

(6)              
REISSUANCE OF THIS DEBENTURE.

 

(a)               
Transfer. If this Debenture is to be transferred, the Holder shall surrender this Debenture
to the Company, whereupon the Company shall forthwith prepare and deliver upon the order of the Holder a new Debenture (in accordance
with Section  (6)(d)), registered in the name of the registered transferee or assignee, representing
the outstanding Principal being transferred by the Holder (along with any accrued and unpaid interest thereof) and, if less than
the entire outstanding Principal is being transferred, a new Debenture (in accordance with Section  (6)(d))
to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of this
Debenture, acknowledge and agree that, by reason of the provisions of Section  (4)(b)(iii)
following conversion or redemption of any portion of this Debenture, the outstanding Principal represented by this Debenture may
be less than the Principal stated on the face of this Debenture.

 

(b)              
Lost, Stolen, or Mutilated Debenture. Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction, or mutilation of this Debenture, and, in the case of loss, theft,
or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation,
upon surrender and cancellation of this Debenture, the Company shall execute and deliver to the Holder a new Debenture (in accordance
with Section (6)(d)) representing the outstanding Principal.

 

    	12

    	 

    

 

(c)               
Debenture Exchangeable for Different Denominations. This Debenture is exchangeable,
upon the surrender hereof by the Holder at the principal office of the Company, for a new Debenture or Debentures (in accordance
with Section  (6)(d)) representing in the aggregate the outstanding Principal of this Debenture,
and each such new Debenture will represent such portion of such outstanding Principal as is designated by the Holder at the time
of such surrender.

 

(d)              
Issuance of New Debentures. Whenever the Company is required to issue a new Debenture
pursuant to the terms of this Debenture, such new Debenture (i) shall be of like tenor with this Debenture, (ii) shall represent,
as indicated on the face of such new Debenture, the Principal remaining outstanding (or in the case of a new Debenture being issued
pursuant to Section 5 (6)(a) or Section 5 (6)(c), the
Principal designated by the Holder that, when added to the Principal represented by the other new Debentures issued in connection
with such issuance, does not exceed the Principal remaining outstanding under this Debenture immediately prior to such issuance
of new Debentures), (iii) shall have an issuance date, as indicated on the face of such new Debenture, which is the same as the
Issuance Date of this Debenture, (iv) shall have the same rights and conditions as this Debenture, and (v) shall represent accrued
and unpaid Interest from the Issuance Date.

 

(7)              
NOTICES.Any notices, consents, waivers, or other communications required or permitted
to be given under the terms hereof must be in writing by letter and e-mail and will be deemed to have been delivered: upon the
later of (A) either (i) receipt, when delivered personally or (ii) one (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 and (B) receipt, when sent by electronic mail. The addresses
and email addresses for such communications shall be:

 

	If
    to the Company, to:	Kona
    Gold Beverage, Inc.
	 	746
                                           North Drive STE A 

        Melbourne,
        FL 32934 

        Attn:
        Robert Clark

	 	Telephone:
    844-714-2224
	 	E-mail:
    robert@konagoldhemp.com
	 	 
	With
                                           a mandatory copy to: 

        (which
        shall not constitute 

        Notice)

         

         
	Clark
                                           Hill LLP 

        1055
        West Seventh Street – 24th Floor 

        Los
        Angeles, CA 90017 

        Attention:
        Randolf Katz 

        Telephone:
        213-714-5310 

        E-mail:
        rkatz@clarkhill.com

	 	 

 

    	13

    	 

    

 

	If
    to the Holder:	YA
    II PN, Ltd
	 	c/o
                                           Yorkville Advisors Global, LLC 

        1012
        Springfield Avenue

	 	Mountainside,
    NJ 07092
	 	Attention:
    Mark Angelo
	 	Telephone:
    201-985-8300
	 	E-mail:
                                                                   Legal@yorkvilleadvisors.com

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

 

or at such other address
and/or e-mail and/or to the attention of such other person as the recipient party has specified by written notice given to each
other party three (3) 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) electronically generated by the sender’s e-mail service-provider
containing the time, date, and recipient e-mail address, or (iii) provided by a nationally recognized overnight delivery service,
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii), or (iii) above, respectively.

 

(8)              
Except as expressly provided herein, no provision of this Debenture shall alter or impair
the obligations of the Company, which are absolute and unconditional, to pay the Principal of, interest and other charges (if any)
on, this Debenture at the time, place, and rate, and in the coin or currency herein prescribed. This Debenture is a direct obligation
of the Company. As long as this Debenture is outstanding, the Company shall not and shall cause its subsidiaries not to, without
the consent of the Holder (which consent shall not be unreasonably withheld, delayed, denied, or conditioned), (i) amend its Certificate
of Incorporation, Bylaws, or other charter documents so as to adversely affect any rights of the Holder; (ii) repay, repurchase,
or offer to repay, repurchase, or otherwise acquire shares of its Common Stock or other equity securities; or (iii) enter into
any agreement with respect to any of the foregoing. 

 

(9)              
This Debenture shall not entitle the Holder to any of the rights of a stockholder of the Company,
including without limitation, the right to vote, to receive dividends and other distributions, or to receive any notice of, or
to attend, meetings of stockholders or any other proceedings of the Company, unless and to the extent converted into shares of
Common Stock in accordance with the terms hereof.

 

(10)          
This Debenture shall be governed by and construed in accordance with the laws of the State
of New York, without giving effect to conflicts of laws thereof. Each of the parties consents to the jurisdiction of the Supreme
Court of the State of New York located in the City of New York, Borough of Manhattan,
and the U.S. District Court for the Southern District of New York in connection with any dispute arising under this Debenture
and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens,
to the bringing of any such proceeding in such jurisdictions. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE
THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN)
OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

 

    	14

    	 

    

 

(11)          
If the Company fails to strictly comply with the terms of this Debenture, then the Company
shall reimburse the Holder promptly for all fees, costs, and expenses, including, without limitation, attorneys’ fees and
expenses incurred by the Holder in any action in connection with this Debenture, including, without limitation, those incurred:
(i) during any workout, attempted workout, and/or in connection with the rendering of legal advice as to the Holder’s rights,
remedies and obligations, (ii) collecting any sums that become due to the Holder, (iii) defending or prosecuting any proceeding
or any counterclaim to any proceeding or appeal, or (iv) the protection, preservation or enforcement of any rights or remedies
of the Holder.

 

(12)          
Any waiver by the Holder of a breach of any provision of this Debenture shall not operate
as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture.
The failure of the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture.
Any waiver must be in writing.

 

(13)          
If any provision of this Debenture is invalid, illegal, or unenforceable, the balance of this
Debenture shall remain in effect and, if any provision is inapplicable to any person or circumstance, it shall nevertheless remain
applicable to all other persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder
shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to
equal the maximum permitted rate of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not
at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension, or
usury law or other law that would prohibit or forgive the Company from paying all or any portion of the Principal of or Interest
on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or that may affect the covenants
or the performance of this Debenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits
or advantages of any such law, and covenants that it will not, by resort to any such law, hinder, delay, or impede the execution
of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been
enacted.

 

(14)          
CERTAIN DEFINITIONS. For purposes of this Debenture, the following terms shall have
the following meanings:

 

(a)               
“Bloomberg” means Bloomberg Financial Markets.

 

    	15

    	 

    

 

(b)              
“Business Day” means any day except Saturday, Sunday and any day which
shall be a federal legal holiday in the United States or a day on which banking institutions are authorized or required by law
or other government action to close.

 

(c)               
“Change of Control Transaction” means the occurrence of (a) an acquisition
after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under
the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract
or otherwise) of in excess of fifty percent (50%) of the voting power of the Company (except that the acquisition of voting securities
by the Holder or any other current holder of Convertible Securities of the Company shall not constitute a Change of Control Transaction
for purposes hereof), (b) a replacement at one time or over time of more than one-half of the members of the board of directors
of the Company (other than as due to the death or disability of a member of the board of directors) that has not been approved
by a majority of those individuals who are members of the board of directors on the date hereof (or by those individuals who are
serving as members of the board of directors on any date whose nomination to the board of directors was approved by a majority
of the members of the board of directors who are members on the date hereof), (c) the merger, consolidation, or sale of fifty percent
(50%) or more of the assets of the Company on a consolidated basis in one or a series of related transactions with or into another
entity, or (d) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing
for any of the events set forth above in (a), (b), or (c). No transfer to a wholly-owned subsidiary shall be deemed a Change of
Control Transaction under this provision.

 

(d)              
“Closing Bid Price” means the price per share in the last reported trade
of the Common Stock on a Primary Market or on the exchange on which the Common Stock is then listed as quoted by Bloomberg.

 

(e)               
“Commission” means the Securities and Exchange Commission.

 

(f)               
“Convertible Securities” means any stock or
securities directly or indirectly convertible into or exercisable or exchangeable for Common Stock.

 

(g)              
“Common Stock” means the common stock, par value $0.00001, of the Company
and stock of any other class into which such shares may hereafter be changed or reclassified.

 

(h)              
“Equity Conditions” means that each of the following conditions is satisfied:
(i) on each day during the period beginning two (2) weeks prior to the applicable date of determination and ending on and including
the applicable date of determination (the “Equity Conditions Measuring Period”), either (A) the Underlying Shares
Registration Statement filed pursuant to the Registration Rights Agreement shall be effective and available for the resale of all
applicable shares of Common Stock to be issued in connection with the event requiring determination or (B) all applicable shares
of Common Stock to be issued in connection with the event requiring determination shall be eligible for sale without restriction
and without the need for registration under any applicable federal or state securities laws; (ii) on each day during the Equity
Conditions Measuring Period, the Common Stock is designated for quotation on the Principal Market and shall not have been suspended
from trading on such exchange or market nor shall delisting or suspension by such exchange or market been threatened or pending
either (A) in writing by such exchange or market or (B) by falling below the then-effective minimum listing maintenance requirements
of such exchange or market; (iii) during the Equity Conditions Measuring Period, the Company shall have delivered Conversion Shares
upon conversion of the Debentures to the Holder on a timely basis as set forth in Section (4)(b) hereof; (iv) any applicable shares
of Common Stock to be issued in connection with the event requiring determination may be issued in full without violating Section
(4)(c) hereof and the rules or regulations of the Primary Market; (v) during the Equity Conditions Measuring Period, there shall
not have occurred either (A) an Event of Default or (B) an event that with the passage of time or giving of notice would constitute
an Event of Default; and (vi) the Company shall have no knowledge of any fact that would cause (A) the Registration Statements
required pursuant to the Registration Rights Agreement not to be effective and available for the resale of all applicable shares
of Common Stock to be issued in connection with the event requiring determination or (B) any applicable shares of Common Stock
to be issued in connection with the event requiring determination not to be eligible for sale without restriction and without the
need for registration under any applicable federal or state securities laws. 

 

    	16

    	 

    

 

(i)                
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(j)                
“Excluded Securities” means, (a) shares issued or deemed to have been issued
by the Company pursuant to an Approved Stock Plan, (b) the shares of Common Stock issued or deemed to be issued by the Company
upon conversion of this Debenture or other Debentures issued by the Company to the Holder, and (c) the shares of Common Stock
issued or deemed to be issued by the Company upon exercise of warrants initially granted by the Company to the Holder;

 

(k)              
“Fundamental Transaction” means any of the following: (1) the Company
effects any merger or consolidation of the Company with or into another Person and the Company is the non-surviving company (other
than a merger or consolidation with a wholly owned subsidiary of the Company for the purpose of redomiciling the Company), (2)
the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any tender
offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted
to tender or exchange their shares for other securities, cash, or property, or (4) the Company effects any reclassification of
the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash, or property. 

 

(l)                
“Options” means any rights, warrants, or options
to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(m)            
“Other Debentures” means any other debentures issued pursuant to the Securities
Purchase Agreement and any other debentures, notes, or other instruments issued in exchange, replacement, or modification of the
foregoing. 

 

    	17

    	 

    

 

(n)              
“Person” means a corporation, an association, a partnership, organization,
a business, an individual, a government or political subdivision thereof, or a governmental agency.

 

(o)              
“Primary Market” means any of the New York
Stock Exchange, the NYSE MKT, the
Nasdaq Global Market, the Nasdaq
Global Select Market, the Nasdaq Capital Market, or the OTC Markets Group Inc.’
OTCQB® Venture Market or OTCQX® Best Market, and any successor to any of the foregoing markets or
exchanges.

 

(p)              
“Redemption Premium” means, 15% of the Principal amount being redeemed.

 

(q)              
“Securities Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

 

(r)                
“Trading Day” means a day on which the shares of Common Stock are quoted
or traded on a Primary Market on which the shares of Common Stock are then quoted or listed; provided, that, in the event
that the shares of Common Stock are not so listed or quoted, then Trading Day shall mean a Business Day.

 

(s)               
“Transaction Document(s)” means this Debenture, along with the Securities
Purchase Agreement, the Security Documents, and any other documents or agreements entered into in connection with the foregoing.

 

(t)                
“Underlying Shares” means the shares of Common Stock issuable upon conversion
of this Debenture or as payment of interest in accordance with the terms hereof.

 

(u)              
“Underlying Shares Registration Statement” means a registration statement
meeting the requirements set forth in the Registration Rights Agreement, covering, among other items, the resale of the Underlying
Shares and the naming the Holder as a “selling stockholder” thereunder. 

 

(v)              
“VWAP” means, for any security as of any date, the daily dollar volume-weighted
average price for such security on the Primary Market as reported by Bloomberg, LP through its “Historical Prices –
Px Table with Average Daily Volume” functions, or, if no dollar volume-weighted average price is reported for such security
by Bloomberg, LP, the average of the highest closing Bid Price and the lowest Closing Ask price of any of the market makers for
such security as reported in the “pink sheets” by Pink® Open Market by OTC Markets Group Inc . 

 

[Signature Page Follows]

 

    	18

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Debenture to be duly executed by a duly authorized officer as of the date set forth above.

 

	 	COMPANY:
	 	KONA GOLD BEVERAGE, INC.
	 	     
	 	By:	 
	 	Name: 	Robert Clark
	 	Title:	CEO

 

    	 

    	 

    

  

EXHIBIT I

CONVERSION NOTICE

 

(To be executed by the Holder in order
to Convert the Debenture)

 

TO: KONA GOLD BEVERAGE, INC.

 

Via E-mail: 

 

The undersigned hereby irrevocably
elects to convert that portion of the outstanding and unpaid Conversion Amount of Debenture No. KGKG 4 1-2 into Shares of
Common Stock of KONA GOLD BEVERAGE, INC., according to the conditions stated therein, as of the Conversion Date written
below.

 

	Conversion Date:	 
	Principal Amount to be Converted:	 
	Accrued Interest to be Converted:	 
	Total Conversion Amount to be converted:	 
	Fixed Conversion Price: 	 
	Variable Conversion Price:	 
	Applicable Conversion Price:	 
	Number of shares of Common Stock to be issued:	 

 

	Please issue the shares of Common Stock in the following name and deliver them to the following account:
	Issue to:	
	Broker DTC Participant Code:	
	Account Number:	
	 	 
	Authorized Signature:	
	 	 
	Name:	
	 	 
	Title:

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