Document:

Exhibit 10.29

 

EXECUTION VERSION

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of February 10, 2021, by and between KONA GOLD BEVERAGE,
INC., a Delaware corporation (the “Company”), and YA II PN, LTD., a Cayman Islands exempt company (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 (i) secured convertible debentures (the “Convertible Debentures”)
which shall be convertible into shares of the Company’s common stock, par value $0.00001 per share (the “Common
Stock,”; and, as converted, the “Conversion Shares”) in accordance with the terms of the Convertible
Debentures and (ii) to grant to the Investor, a warrant to purchase up to 50,000,000 shares of Common Stock (the “Warrant”;
and, 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 Investor 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 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 Investor 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 with the U.S. Securities and Exchange Commission
(“SEC”), in the event the Company is notified by the SEC that one of the above Registration Statements will
not be reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such Registration Statement
shall be the 5th Trading Day following the date on which the Company is so notified if such date precedes the dates required above.

 

(b)       “Filing
Deadline” means, with respect to the initial Registration Statement filed with the SEC as required hereunder, the 30th
calendar day following the date hereof.

 

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(c)       “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.

 

(d)       “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.

 

(e)       “Registrable
Securities” means all of (i) the Conversion Shares issuable upon conversion of the Convertible Debenture or Conversion
Shares issued and held by the Investor, (ii) the Warrant Shares issuable upon exercise of the Warrant or issued and held by the
Investor, (iii) any additional shares issuable in connection with any anti-dilution provisions in the Convertible Debenture (without
giving effect to any limitations on exercise set forth in the Convertible Debenture) and (v) any shares of Common Stock issued
or issuable with respect to the Conversion Shares, the Convertible Debentures, the Warrant Shares and the Warrant as a result of
any stock split, dividend or other distribution, recapitalization or similar event or otherwise, without regard to any limitations
on the conversion of the Convertible Debenture or exercise of the Warrant.

 

(f)       “Registration
Statement” means the registration statements required to be filed hereunder (including any additional registration statements
contemplated by Section 3(c)), including (in each case) the Prospectus, amendments and supplements to such registration statement
or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.

 

(g)       “Required
Registration Amount” means (i) with respect to the initial Registration Statement at least 232,762,262 Conversion Shares
and all of the Warrant Shares issuable pursuant to the Warrant and (ii) with respect to subsequent Registration Statements at least
such number of shares of Common Stock as shall equal up to 300% of the maximum number of shares of Common Stock issuable upon conversion
of all Convertible Debenture then outstanding (assuming for purposes hereof that (x) such Convertible Debenture 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 Debenture set forth in the Statement of Designations), in each
case subject to any cutback set forth in Section 2(d) and all of the Warrant Shares issuable upon exercise of the Warrant.

 

(h)       
“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.

 

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2.       REGISTRATION.

 

(a)       The
Company’s registration obligations set forth in this Section 2, 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 or the Investor’s Counsel pursuant to a written opinion letter to such effect, addressed
and acceptable to the Company’s transfer agent and the affected Holders (the “Registration Period”).

 

(b)       On
or prior to the Filing Deadline, prepare and file with the SEC a Registration Statement on Form S-1 (or, if the Company is then
eligible, on Form S-3) covering the resale by the Investor of all of the 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 Initial Registration Statement is initially filed with the SEC and each subsequent registration statement thereafter.
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 (New York) on the date 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 their review and comment. The Investor shall furnish comments
on the Registration Statement to the Company within 24 hours of the receipt thereof from the Company.

 

(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; (ii) 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; (iii) 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 Investor
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 which would constitute material non-public information as to any Investor which has
not executed a confidentiality agreement with the Company); and (iv) 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
which are required to be filed pursuant to this Agreement (including pursuant to this Section 2(d)) 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 of 1934, as amended
(the “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 on the same day on which the Exchange Act report is filed
which created the requirement for the Company to amend or supplement the Registration Statement.

 

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(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 “Cut Back Securities.” To the extent Cut Back Securities exist, as soon as may be permitted by the SEC,
the Company shall be required to 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 (if the Company files a Registration Statement without affording the Investor the opportunity to
review and comment on the same as required by Section 2(c), the Company shall not be deemed to have satisfied this clause (i)),
or (ii) the Company fails to file with the SEC a request for acceleration in accordance with Rule 461 promulgated under the Securities
Act, within 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, or (iii) a Registration Statement
filed or required to be filed hereunder is not declared effective by the SEC by its Effectiveness Deadline, or (iv) after the effectiveness,
a Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities for which it is
required to be effective, or the Holders 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 (v) 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, on each such Event date and on each monthly anniversary of each such Event date (if the applicable Event
shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each holder of Convertible
Debenture an amount in cash, as partial liquidated damages (“Liquidated Damages”) and not as a penalty, equal
to 2.0% of the aggregate purchase price paid by such holder pursuant to the Securities Purchase Agreement for any Convertible Debentures
then held by such holder. The parties agree that the maximum aggregate Liquidated Damages payable to a holder of Convertible Debentures
under this Agreement shall be 24% of the aggregate Purchase Price paid by such holder pursuant to the Securities Purchase Agreement.
The partial Liquidated Damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior
to the cure of an Event.

 

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(f)       Liquidated
Damages. The Company and the Investor hereto acknowledge and agree that the sums payable under subsection 2(f) above shall
constitute liquidated damages and not penalties and are in addition to all other rights of the Investor, including the right to
call a default. The parties further acknowledge that (i) the amount of loss or damages likely to be incurred is incapable or is
difficult to precisely estimate, (ii) the amounts specified in such subsections bear a reasonable relationship to, and are not
plainly or grossly disproportionate to, the probable loss likely to be incurred in connection with any failure by the Company to
obtain or maintain the effectiveness of a Registration Statement, (iii) one of the reasons for the Company and the Investor reaching
an agreement as to such amounts was the uncertainty and cost of litigation regarding the question of actual damages, and (iv) the
Company and the Investor are sophisticated business parties and have been represented by sophisticated and able legal counsel and
negotiated this Agreement at arm’s length.

 

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 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 electronic 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 Investor,
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 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, which obligation
may be met by directing the Investor to www.sec.gov, (i) an electronic 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) an electronic copy 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 as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by such Investor.

 

(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 articles 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.

 

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(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 an electronic copy of such supplement or amendment to each Investor,
which delivery obligation may be fulfilled by directing the Investor to www.sec.gov. 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.

 

(f)       If,
after the execution of this Agreement, a 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 a 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.

 

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(g)       If,
after the execution of this Agreement, a 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 which 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 a Investor) or use any Record or other information which 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 a 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 a 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.

 

(i)       The
Company shall use its best efforts either to cause all the Registrable Securities covered by a Registration Statement (i) to be
listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any,
if the listing of such Registrable Securities is then permitted under the rules of such exchange or (ii) the inclusion for
quotation on the OTC Bulletin Board for such Registrable Securities. The Company shall pay all fees and expenses in connection
with satisfying its obligation under this Section 3(i).

 

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(j)       The
Company shall cooperate with each Investor who holds Registrable Securities being offered and, to the extent applicable, to facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

 

(k)       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.

 

(l)       Within
2 business days after a Registration Statement which 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 in such form
customary for such notices of effectiveness, that such Registration Statement has been declared effective by the SEC.

 

(m)       The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the 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 such 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 a Investor
in accordance with the terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect
to which a 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.

 

(b)       Registrable

 

5.       EXPENSES
OF REGISTRATION.

 

All expenses incurred
in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration,
listing and qualifications fees, printers, legal and accounting fees shall be paid by the Company.

 

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6.       INDEMNIFICATION.

 

With respect to Registrable
Securities which 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 (“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 there under 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 Investor 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 which 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. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer
of the Registrable Securities by the Investors pursuant to Section 9 hereof.

 

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(b)       In
connection with a Registration Statement, the Investor agrees to severally and not jointly 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; 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 and shall survive the transfer of the Registrable Securities by the Investors pursuant
to Section 9. 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.

 

(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
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 which 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.

 

    	 	 10	 

     

    

 

(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.

 

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 Investor 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 (“Rule
144”), 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

 

    	 	 11	 

     

    

 

(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
or quarterly report 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 Investor 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 the Investor 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 to the extent that 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.

 

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. Except as set forth on Schedule 10(b) attached hereto, neither the Company nor any of its
security holders (other than the Investor in such capacity pursuant hereto) may include securities of the Company in the initial
Registration Statement other than the Registrable Securities. The Company shall not file any other registration statements 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.

 

(c)       Piggy-Back
Registrations. If at any time there is not an effective Registration Statement covering all of the Registrable Securities and
the Company shall determine to prepare and file with the SEC a registration statement relating to an offering for its own account
or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as
promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection
with any acquisition of any entity or business or equity securities issuable in connection with the stock option or other employee
benefit plans, then the Company shall send to the Investor a written notice of such determination and, if within fifteen (15) days
after the date of such notice, any such Investor shall so request in writing, the Company shall include in such registration statement
all or any part of such Registrable Securities such Investor requests to be registered; provided, however, that,
the Company shall not be required to register any Registrable Securities pursuant to this Section 10(c) that are eligible for resale
pursuant to Rule 144(k) promulgated under the Securities Act or that are the subject of a then effective Registration Statement.

 

    	 	 12	 

     

    

 

(d)       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, to:	Kona Gold Beverage, Inc.
	 	746 North Drive, STE A
	 	Melbourne,  FL 32934
	 	
        Attention: Robert Clark 

        Telephone: 844-714-2224

	 	Email:    robert@konagoldhemp.com  
	 	 
	With Copy to:	
        Clark Hill LLP 

        1055 West Seventh Street, 24th Floor 

        Los Angeles, CA 90017

	 	Attention:  Randolf Katz
	 	Telephone: 213-417-5310
	 	Email: rkatz@clarkhill.com
	 	 
	If to the Investor:	
        YA II PN, Ltd. 

        c/o Yorkville Advisors Global, LP

	 	1012 Springfield Avenue
	 	Mountainside, NJ 07092
	 	
        Attention:Mark Angelo 

        Telephone: (201) 536-5115 

         

	With a copy to:	David Gonzalez, Esq. 
	 	1012 Springfield Avenue
	 	Mountainside, NJ 07092
	 	Telephone:(201) 536-5109
	 	Email:dgonzalez@yorkvilleadvisors.com 

 

    	 	 13	 

     

    

 

(e)       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.

 

(f)       The
laws of the State of New York shall govern all issues concerning the relative rights of the Company and the Investor 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 the Borough of Manhattan, New York and the federal courts for the Southern District of New York sitting
in the Borough of Manhattan, 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
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.

 

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

 

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

 

(i)       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 by facsimile transmission
of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(j)       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.

 

    	 	 14	 

     

    

 

(k)       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.

 

(l)       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.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

    	 	 15	 

     

    

 

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

 

    	 	 16	 

     

    

 

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.

 

	 	
        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:

 

    	 	 17	 

     

    

 

EXHIBIT A

 

SELLING STOCKHOLDERS

 

AND PLAN OF DISTRIBUTION

 

Selling Stockholders

 

The shares of Common
Stock being offered by the selling stockholders are issuable upon conversion of the convertible debenture. For additional information
regarding the issuance of the convertible debenture, see “Private Placement of Convertible Debentures above. We are registering
the shares of Common Stock in order to permit the selling stockholders to offer the shares for resale from time to time. Except
as otherwise noted and except for the ownership of the convertible debenture issued pursuant to the Securities Purchase Agreement,
the selling stockholders have not had any material relationship with us within the past three years.

 

The table below lists
the selling stockholders and other information regarding the beneficial ownership of the shares of Common Stock by each of the
selling stockholders. The second column lists the number of shares of Common Stock beneficially owned by each selling stockholder,
based on its ownership of the convertible debentures, as of ________, 200_, assuming conversion of all the convertible debenture
held by the selling stockholders on that date, without regard to any limitations on conversions or exercise.

 

The third column lists
the shares of Common Stock being offered by this prospectus by the selling stockholders.

 

In accordance with
the terms of a registration rights agreement with the selling stockholders, this prospectus generally covers the resale of at least
___________ shares of common stock issued or issuable to the selling stockholders pursuant to the Securities Purchase Agreement.
Because the conversion price of the convertible debenture may be adjusted, the number of shares that will actually be issued
may be more or less than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the
shares offered by the selling stockholders pursuant to this prospectus.

 

Under the terms of
the convertible debenture, a selling stockholder may not convert the convertible debenture to the extent such conversion or exercise
would cause such selling stockholder, together with its affiliates, to beneficially own a number of shares of Common Stock which
would exceed 4.99% of our then outstanding shares of Common Stock following such conversion or exercise, excluding for purposes
of such determination shares of Common Stock issuable upon conversion of the convertible debentures which have not been converted.
The number of shares in the second column does not reflect this limitation. The selling stockholders may sell all, some or none
of their shares in this offering. See "Plan of Distribution."

 

    	 	 18	 

     

    

 

	

Name of Selling Stockholder	

Number of Shares Owned Prior to Offering	Maximum Number of Shares to be Sold Pursuant to this Prospectus	

Number of Shares Owned After Offering
	YAII PN, Ltd. (1)	
         

         

         
		

  

(1)       YAII
PN, Ltd. is a Cayman Island exempt company. YAII PN, Ltd. is managed by Yorkville Advisors Global, LP. Investment decisions for
Yorkville Advisors Global, LP are made by Mark Angelo, its portfolio manager.

 

    	 	 19	 

     

    

 

Plan of Distribution

 

Each Selling Stockholder
(the “Selling Stockholders”) of the common stock and any of their pledgees, assignees and successors-in-interest
may, from time to time, sell any or all of their shares of common stock on the __________ or any other stock exchange, market or
trading facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. A
Selling Stockholder may use any one or more of the following methods when selling shares:

 

		●	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		●	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the
block as principal to facilitate the transaction;

 

		●	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		●	an exchange distribution in accordance with the rules of the applicable exchange;

 

		●	privately negotiated transactions;

 

		●	broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per
share;

 

		●	through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 

		●	a combination of any such methods of sale; or

 

		●	any other method permitted pursuant to applicable law.

 

The Selling Stockholders
may also sell shares under Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”), if
available, rather than under this prospectus.

 

Broker-dealers engaged
by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser)
in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction
not in excess of a customary brokerage commission in compliance with NASDR Rule 2440; and in the case of a principal transaction
a markup or markdown in compliance with NASDR IM-2440.

 

    	 	 20	 

     

    

 

In connection with
the sale of the common stock or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the Common Stock in the course of hedging the positions
they assume. The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions
or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution
of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

 

The Selling Stockholders
and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters” within
the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the Common Stock. In no event shall any broker-dealer receive
fees, commissions and markups which, in the aggregate, would exceed eight percent (8%).

 

The Company is required
to pay certain fees and expenses incurred by the Company incident to the registration of the shares. The Company has agreed to
indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities
Act.

 

Because Selling Stockholders
may be deemed to be “underwriters” within the meaning of the Securities Act, they will be subject to the prospectus
delivery requirements of the Securities Act including Rule 172 thereunder. In addition, any securities covered by this prospectus
which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus.
There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the Selling
Stockholders.

 

We agreed to keep this
prospectus effective until the earlier of (i) the date on which the shares may be resold by the Selling Stockholders without registration
and without regard to any volume limitations by reason of Rule 144(k) under the Securities Act or any other rule of similar effect
or (ii) all of the shares have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of
similar effect. The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable
state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified
for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied
with.

 

Under applicable rules
and regulations under the Exchange Act, any person engaged in the distribution of the resale shares may not simultaneously engage
in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of
the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and
sales of shares of the common stock by the Selling Stockholders or any other person. We will make copies of this prospectus available
to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior
to the time of the sale (including by compliance with Rule 172 under the Securities Act).

 

    	 	 21	 

     

    

 

EXHIBIT B

 

OTHER DISCLOSURES

 

See attachment provided separately.

    	 	 22Exhibit 10.30

 

AMENDED AND RESTATED

 

SECURITY AGREEMENT

 

THIS AMENDED AND
RESTATED SECURITY AGREEMENT (the “Agreement”) is entered into as of February 10, 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 issued to the Secured Party (i) 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 (the “May 2020 Conversion Shares”); and (ii) a warrant (the “May
2020 Warrant”) to be exercisable to acquire additional shares of Common Stock (the “2020 Warrant Shares”)
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; and

 

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;

 

    	 	 1	 

     

    

 

WHEREAS, the
Company acquired all of the stock and assets of S&S on or about January 28, 2021;

 

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

 

WHEREAS, it
is a condition precedent to the Secured Party purchasing the Convertible Debentures and Warrant pursuant to the Securities Purchase
Agreement that each of the Grantors shall have executed and delivered to the Secured Party this 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 Securities Purchase Agreement)
and the May 2020 Transaction Documents (collectively referred to as the “Transaction Documents”);

 

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.

 

    	 	 2	 

     

    

 

(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 Securities Purchase Agreement, the Convertible Debenture, the Global Guaranty Agreement
or any other Transaction Document.

 

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

 

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

 

“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.

 

“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 Securities
Purchase Agreement, (ii) the Convertible Debentures; (iii) the Global Guaranty Agreement, (iv) any agreement or document related
to the Securities Purchase Agreement, the Convertible Debentures, the Global Guaranty Agreement, or any other Transaction Document;
or (v) 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.

 

    	 	 3	 

     

    

 

“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.

 

“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 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.

 

    	 	 4	 

     

    

 

(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.

 

2.2       No
Assumption of Liability.

 

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.

 

    	 	 5	 

     

    

 

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.

 

    	 	 6	 

     

    

 

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:

 

(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.

 

    	 	 7	 

     

    

 

(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.

 

(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 Convertible Debenture 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.

 

    	 	 8	 

     

    

 

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.

 

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 Convertible Debenture to which it is or will be a party, or perform any of its obligations hereunder or thereunder.

 

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 Convertible Debenture and/or applicable law and (iv)
as may be reasonably requested by Secured Party, all with financially sound and reputable insurers.

 

    	 	 9	 

     

    

 

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).

 

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.

 

    	 	 10	 

     

    

 

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.

 

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.

 

    	 	 11	 

     

    

 

(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.

 

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.

 

    	 	 12	 

     

    

 

(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.

 

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.

 

    	 	 13	 

     

    

 

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.

 

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

	 	Email: robert@konagoldhemp.com
	
         

        

        With a 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 

        Email: rkatz@clarkhill.com

 

    	 	 14	 

     

    

 

	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 copy to:	David Gonzalez, Esq.
	(which shall not constitute	1012 Springfield Avenue
	notice)	Mountainside, NJ  07092
	 	Telephone:(201) 536-5109
	 	Email:  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 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) 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.

 

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 Convertible
Debenture, 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 Convertible Debenture, 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.

 

    	 	 15	 

     

    

 

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.

 

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.

 

    	 	 16	 

     

    

 

8.8Indemnification.

 

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) claims
threatened or brought by one or more third parties against any Grantor, or any of its affiliates or subsidiaries, (iii) 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 Convertible Debenture, this Agreement, 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.

 

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 Convertible Debenture,
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 Convertible Debenture, 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 Convertible
Debenture, and/or applicable law; and

 

    	 	 17	 

     

    

 

(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 Convertible Debenture, 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:	 

 

    	 	 20	 

     

    

 

	 	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: ____________________________

 

    	 	 21	 

     

    

 

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;

 

    	 	 22	 

     

    

 

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.

 

    	 	 23	 

     

    

 

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
	 	 	 	 	 
	LEMIN	88/462468	06/06/2019	Abandoned	Abandoned
	LEMI	88/394871	04/20/2019	Abandoned	Abandoned
	 	 	 	 	 
	LEMIN1	Common Law	 	 	 
	 	 	 	 	 
	OOH LA
LEMIN2	Common Law	 	 	 
	

                                                                                 

                                                                                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/

 

 

 

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

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

 

    	 	 24	 

     

    

 

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

 

    	 	 25	 

     

    

 

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

 

    	 	 26

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