Document:

Exhibit 10.23

 

CERTAIN
CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH “[***]”. SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THIS EXHIBIT BECAUSE IT IS (1) NOT MATERIAL AND (2) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED.

  

THIRD
AMENDED AND RESTATED

EXCLUSIVE DISTRIBUTION AGREEMENT

 

THIS
THIRD AMENDED AND RESTATED EXCLUSIVE DISTRIBUTION AGREEMENT (this “Agreement”) is entered into as of June 10,
2022 (the “Effective Date”), by and between BIDI VAPOR, LLC,
a Florida limited liability company (“Manufacturer”), and KAIVAL BRANDS INNOVATIONS GROUP, INC., a Delaware
corporation (“Distributor”). Manufacturer and Distributor are each referred to herein as a “Party”
and collectively, the “Parties.”

 

RECITALS

 

WHEREAS,
Manufacturer is in the business of developing electronic and non-electronic nicotine delivery systems and related components (all such
products whether now or hereafter made available for sale by Manufacturer, other than Excluded Products, being hereinafter referred to
as the “Products”). A list of the currently available products is listed on Exhibit A.

 

WHEREAS,
Distributor wishes to obtain, and Manufacturer is willing to grant Distributor, an exclusive worldwide right to distribute the Products
for sale and resale to both retail level customers (“Retail Customers”) and non-retail level customers, including
without limitation, to wholesale customers and sub-distributors (“Non-Retail Customers”).

 

WHEREAS,
Manufacturer and Distributor previously entered into that certain Exclusive Distribution Agreement, effective as of March 9, 2020 (the
“Original Agreement”).

 

WHEREAS,
Manufacturer and Distributor amended and restated the Original Agreement in its entirety on May 21, 2020 (the “First Restated
Agreement”), which superseded the Original Agreement, and then subsequently amended and restated the First Restated Agreement
in its entirety pursuant to that certain Second Amended and Restated Exclusive Distribution Agreement, dated effective as of April 20,
2021 (the “Second Restated Agreement”), which superseded the First Restated Agreement.

 

WHEREAS,
the Parties wish to amend and restate the Second Restated Agreement in its entirety for purposes of modifying various terms and provisions
thereof.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual representations and agreements set forth herein, and other good
and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Manufacturer and Distributor, intending to be
legally bound, hereby agree as follows:

 

1.       APPOINTMENT;
EXCLUSIVITY; MARKETING AND SUPPORT.

 

A.       Appointment
and Exclusivity. Subject to the terms and conditions set forth in this Agreement and the carve-out for, and exclusion of, the PMI
Markets as set forth in Section 1.A.i. below (the “PMI Exclusion”), Manufacturer hereby appoints Distributor as its
exclusive worldwide distributor of the Products, and Manufacturer cannot sell to anyone except Distributor or its designated parties
(i.e., KBI (as defined below)) (“Designees”) any Products covered by this Agreement. Distributor accepts the appointment
as Manufacturer’s exclusive worldwide distributor of the Products (subject only to the PMI Exclusion) and agrees to buy for resale,
upon the terms and conditions set forth herein, the Products in such quantities as Distributor shall need to properly service the market.
Manufacturer represents and warrants that the appointment of and sale of the Products to Distributor under this Agreement does not violate
any obligations or contracts of Manufacturer. As a condition of exclusivity, Distributor agrees not to represent or sell other products,
which Manufacturer may reasonably determine to be competitive with the Products, without written approval from Manufacturer. For purposes
of clarification, during the term of this Agreement, Manufacturer will not directly or indirectly sell any Products to any person (Retail
Customer or Non-Retail Customer) other than to Distributor and its Designees. Notwithstanding anything to the contrary set forth in this
Agreement, “Products” does not include the Excluded Products.

 

     

     

    

  

		i.	Distribution
                                            of Certain Products in the PMI Markets. The Parties acknowledge and agree: (a) Kaival
                                            Brands International, LLC, a Delaware limited liability company (“KBI”)
                                            is a wholly owned subsidiary of Distributor; (b) KBI, on the Effective Date, will be entering
                                            into the Deed of Licensing Agreement (the “PMI Licensing Agreement”) with
                                            Philip Morris Products, S.A. (“PMI”) whereby PMI will be granted a sub-license
                                            for certain intellectual property more specifically set forth in the PMI Licensing Agreement
                                            in the Markets; (c) in order to fulfill the terms of the PMI Licensing Agreement, KBI and
                                            the Manufacturer will be entering into a License Agreement on the Effective Date whereby
                                            Manufacturer shall license to KBI all the intellectual property rights that are necessary
                                            for KBI to sub-license the intellectual property rights to PMI that are forth in the PMI
                                            Licensing Agreement; and (d) in order to fulfill the terms of the PMI Licensing Agreement,
                                            Distributor shall contribute its exclusive distribution rights to the Markets (the “PMI
                                            Distribution Rights”) to KBI in the form of a Capital Contribution Agreement for
                                            the duration of the Term (including any Extension Period and Sell-Out Period) to ensure this
                                            Agreement does not conflict with or otherwise include the rights sub-licensed by KBI to PMI
                                            pursuant to the PMI Licensing Agreement, including, without limitation, PMI’s right
                                            to distribute Products, as well as any New Property included under the scope of the PMI Licensing
                                            Agreement, in the Markets. The Parties agree that upon termination of the PMI Licensing Agreement
                                            and the completion of any Sell-Out Period, KBI shall contribute the PMI Distribution Rights
                                            back to Distributor so that all worldwide distribution rights revert back to Distributor
                                            for the duration of the term of this Agreement in the manner prescribed herein and that the
                                            PMI Exclusion no longer applies in interpreting this Agreement. Capitalized terms that are
                                            used, but not defined, in this Agreement shall have the meanings set forth in the PMI Licensing
                                            Agreement. The Parties further agree that Distributor shall grant the PMI Distribution Rights
                                            directly to PMI as required by the Deed of Letter dated even date herewith (the “Deed
                                            Letter”) for the duration of the Term including any Extension Period and Sell-Out
                                            Period.

 

		ii.	Before
                                            Distributor sells or permits any Products to be sold outside of the United States in a country
                                            that is not a Market (or in any Market after the Term concludes): (a) a Freedom to Operate
                                            and compliance review with respect to that country shall be conducted by Distributor and
                                            shared with Manufacturer; and (ii) both Parties shall agree upon all relevant commercial
                                            terms with respect to the sale of Products by Manufacturer to Distributor for that purpose.
                                            Manufacturer must agree that the Freedom to Operate and compliance review is sufficient and
                                            satisfactory before Distributor can sell Products or permit Products to be sold in the associated
                                            country, but such approval shall not be unreasonably withheld. The costs of such Freedom
                                            to Operate and compliance review shall be split evenly between the Manufacturer and the Distributor;
                                            provided however, that if Distributor does not launch a Product into the country within
                                            one year after the Freedom to Operate and compliance review is initiated with respect to
                                            that country, then Distributor will reimburse Manufacturer for Manufacturer’s share
                                            of the costs of such related Freedom to Operate and compliance review within thirty (30)
                                            days after such first (1st) anniversary. Additionally, the price that Distributor
                                            pays to Manufacturer for Products to be sold outside of the United States will be agreed
                                            upon by the Parties independently of the price Distributor pays to Manufacturer for Products
                                            to be sold inside of the United States, and will be agreed upon on a market by market (or
                                            territory by territory) basis. These price changes and determinations will follow the same
                                            process outlined in Section 2.D.

 

    2 

     

    

 

B.       Marketing
and Support. Manufacturer will be solely responsible to provide Distributor with all branding, logos, and marketing materials to
be utilized by Distributor in connection with Distributor’s marketing and promotion of the Products; provided, however,
Distributor shall bear all expenses related to reproduction and distribution of the same. Distributor agrees to use its best efforts
to promote, develop a market, sell, and distribute the Products worldwide. Among such other actions as may be necessary to generate sales
of the Products, Distributor will perform at its expense and to the reasonable satisfaction of Manufacturer the following duties:

 

		i.	Distributor
                                            will engage in sales promotion activities in which the Products shall be designated by their
                                            correct names and identified as the Products of Manufacturer being marketed by Distributor
                                            as an independent distributor.

 

		ii.	Distributor
                                            will provide all customer service and support (both to its Retail Customers and Non-Retail
                                            Customers and to all end consumers of the Products), and will maintain adequate quality control
                                            staffing at all times to perform the required quality control processes and procedures relating
                                            to the Products.

 

		iii.	Distributor
                                            may use internet domains and subdomains that include Manufacturer trademarks to effectuate
                                            marketing and sales permitted under this Agreement, subject to the terms and provisions of
                                            Section 5.

 

		iv.	Distributor
                                            shall maintain adequate warehousing and inventory levels of the Products on-hand to meet
                                            demand. Distributor understands that Manufacturer will only produce Products for accepted
                                            orders from Distributor, and Manufacturer is not obligated to hold any inventory (except
                                            as designated for shipment pursuant to an accepted order). Distributor’s warehouse
                                            must meet Manufacturer’s reasonable product and storage specifications communicated
                                            in advance to Distributor, as well as all applicable laws, regulations, and government orders,
                                            and all industry regulations, and shall be able to hold enough inventory to allow it to meet
                                            anticipated customer demand. Distributor’s warehouse must be adequately climate controlled
                                            for any portion that stores the Products, and must be operated, in a manner consistent with
                                            Manufacturer’s reasonable storage and handling instructions for the Products.

 

    3 

     

    

 

		v.	Distributor
                                            shall at all times conduct its business in a manner that will reflect favorably on Manufacturer
                                            and the Products and will not engage in any deceptive, misleading, illegal, or unethical
                                            business practice. In performing its obligations hereunder, Distributor agrees not to make
                                            any representations or give any warranties or guarantees to any person with respect to the
                                            Products, other than in compliance with Section 7.A. hereof or otherwise expressly authorized
                                            in writing by Manufacturer.

 

		vi.	Distributor
                                            shall provide to Manufacturer prior to the time of first use all website content and five
                                            (5) copies of all of Distributor’s industry advertising communications, advertising,
                                            and sales promotion materials in which any Products are mentioned and five (5) copies of
                                            any translations of any manuals or other materials provided or sold to Distributor by Manufacturer.
                                            Manufacturer shall have the right (but not the obligation) to promptly comment on such materials
                                            for legal and factual compliance related issues (and Distributor shall reasonably consider,
                                            and not unreasonably reject, such comments for inclusion in such final copies). Notwithstanding
                                            the foregoing, nothing herein shall prohibit Distributor from making disclosures required
                                            by law or order of a tribunal of competent jurisdiction (provided, however,
                                            that except to the extent prohibited by law or order of a tribunal of competent jurisdiction,
                                            Distributor shall provide prior written notice of such disclosures to Manufacturer).

 

		vii.	At
                                            Distributor’s own cost and not more often than every three (3) months, Distributor
                                            shall make reports to Manufacturer, as reasonably requested by Manufacturer, (a) with respect
                                            to sales and potential sales of the Products, and (b) regarding information as is reasonably
                                            necessary to enable Manufacturer to complete Manufacturer’s post-PMTA survey and other
                                            legal obligations. Distributor also shall report to Manufacturer such information as is reasonably
                                            necessary to enable Manufacturer to manufacture or supply the Products in compliance with
                                            applicable laws and regulations in jurisdictions in which Distributor sells, or has authorized
                                            others to sell, the Products.

 

		viii.	Distributor
                                            will prepare and deliver to Manufacturer three-year rolling forecasts of Distributor’s
                                            anticipated sales by Product and SKU category, updated and delivered annually on or before
                                            October 1 of each calendar year commencing with the year during which a marketing grant order
                                            (an “MGO”) is issued by the U.S. Food and Drug Administration for any
                                            one of the stock keeping units (i.e., one of the flavors identified on Exhibit A) (“SKUs”);
                                            provided, however, that such forecasts shall only include SKUs that have received
                                            an MGO. The parties shall discuss such forecasts concurrently with their meeting on pricing
                                            described in Section 2.D. If an MGO is granted with respect to a SKU after the Minimum Purchase
                                            Threshold is finally determined pursuant to Section 2.D for a given year, that Minimum Purchase
                                            Threshold shall not include such SKU for that year, but such SKU shall be incorporated when
                                            the parties meet again beginning the next October 1 pursuant to the normal process prescribed
                                            by Section 2.D.

 

    4 

     

    

 

		ix.	Distributor
                                            will comply with all applicable laws and regulations and will not assist or participate in
                                            any violation of laws or regulations applicable to Manufacturer or Distributor. Notwithstanding
                                            anything to the contrary in this Agreement, at Distributor’s own cost, Distributor
                                            shall: (a) use commercially reasonable youth purchase prevention measures; (b) comply with
                                            all of youth-prevention measures necessitated by the results of Manufacturer’s PMTA
                                            surveys; and (c) take any other corrective steps required for Distributor (as opposed to
                                            Manufacturer) as a result of the PMTA surveys.

 

		x.	Distributor
                                            shall be responsible for all expenses incurred by it in connection with the implementation
                                            and performance of its duties and obligations under this Agreement, including, without limitation:
                                            (i) salaries or compensation for its personnel; (ii) costs and expenses associated with establishing
                                            and maintaining its sales organization and offices; and (iii) marketing, advertising, and
                                            promotion expenses.

 

		xi.	On
                                            an on-going basis, Distributor must notify Manufacturer within three (3) business days after
                                            its receipt of any written notice that Manufacturer’s sale of Products to Distributor,
                                            or Distributor’s subsequent marketing, distribution, or resale of those Products, is
                                            illegal (a “Notice of Illegality”), provided, that if Distributor fails
                                            to do so but an officer of Manufacturer separately has knowledge of some or all of the information
                                            contained in that Notice of Illegality, Manufacturer shall be responsible for the portion
                                            of those losses that a court, tribunal, or arbitrator with jurisdiction over the Parties
                                            finds could have been avoided as a result of that officer’s knowledge, and Distributor
                                            shall be responsible for the remainder of those losses that could have been avoided by providing
                                            the Notice of Illegality to Manufacturer.

 

2.       PURCHASE
ORDERS; PRICING.

 

A.       Purchase
Orders. Distributor shall order the Products in accordance with the terms and conditions of this Agreement. Each order for the purchase
of the Products (a “Purchase Order”) must be submitted to Manufacturer by Distributor by email or Manufacturer’s
electronic data interchange (EDI) system. Each Purchase Order shall specify: (i) whether the order is being made in connection with the
sale by Distributor to Retail Customers or to Non-Retail Customers, (ii) the quantity of the Products being ordered, (iii) the price
to be paid by Distributor to Manufacturer for the Products ordered, (iv) payment terms granted by Manufacturer (not to be inconsistent
with the requirements of this Agreement), (v) the requested receipt date and delivery instructions for the applicable Products ordered,
and (vi) that the quantity of Products includes at least one (1) full container of Products (i.e., at least 504,000 units of Products,
as 70 pallets of 7,200 units each pallet can be contained in a container), with any orders for any one flavor of Product being in one
pallet quantity denominations (7,200 units per pallet). Receipt dates must be during the term of this Agreement, except Distributor may
request, subject to Manufacturer’s acceptance in Manufacturer’s sole and absolute discretion, a Purchase Order with a requested
receipt date after the expiration or termination of this Agreement, in which case, if accepted by Manufacturer, the terms and conditions
of this Agreement shall apply to such purchase, but under no circumstances should such purchase be deemed to be or construed as being
a renewal or extension of this Agreement or the exclusivity rights granted to Distributor herein. The Parties agree that to the extent
that any of the terms and conditions of this Agreement conflict or are inconsistent with the terms or conditions of any Purchase Order
submitted by Distributor, the terms and conditions of this Agreement shall prevail and control to the extent of any such conflict or
inconsistency, unless the Purchase Order containing such conflicting or inconsistent terms and conditions is countersigned by Manufacturer,
in which case the terms and conditions set forth in such Purchase Order shall prevail and control to the extent of any such conflict
or inconsistency (but with respect to that order only).

 

    5 

     

    

 

B.       Acceptance
of Purchase Order. A Purchase Order submitted by Distributor shall be deemed to have been accepted by, and shall be binding upon,
Manufacturer when it is countersigned by Manufacturer (which Manufacturer will not unreasonably withhold, condition, or delay) or if
it is not rejected by Manufacturer, in whole or in part, by written notice to Distributor that is received by Distributor within ten
(10) business days after the receipt of the Purchase Order by Manufacturer (the “Consideration Period”). Notwithstanding
anything contained herein to the contrary, Manufacturer may take the following actions with respect to an applicable Purchase Order placed
by Distributor:

 

		i.	Rejection,
                                            Cancellation, or Delay After the Consideration Period. After the Consideration Period,
                                            Manufacturer may reject, cancel, or delay any Purchased Order: (a) pursuant to Section 4.B.
                                            below; or (b) if the Purchase Order contains terms inconsistent with the terms and provisions
                                            of this Agreement.

 

		ii.	Rejection
                                            During the Consideration Period. During the Consideration Period, Manufacturer may reject
                                            any Purchase Order: (a) pursuant to Section 4.B. below; (b) if the Purchase Order contains
                                            terms inconsistent with the terms and provisions of this Agreement; or (c) if Manufacturer
                                            possesses insufficient production capacity to fulfill the order in the time period required
                                            by the Purchase Order.

 

		iii.	Special
                                            Provisions Non-Exclusivity. During any time when the rights granted to Distributor in
                                            this Agreement are non-exclusive, Manufacturer may modify a Purchase Order (the “Modified
                                            Purchase Order”) as commercially necessary in light of Manufacturer’s production
                                            capacity or any other commercial constraint; provided however, that: (a) Manufacturer may
                                            not reject, cancel, or delay a Purchase Order for any other reason; and (b) Manufacturer’s
                                            stipulation of a reasonable Carrier Possession Date in light of its current production capacity
                                            prior to acceptance (or deemed acceptance) shall not constitute a prohibited cancellation,
                                            or delay. Manufacturer shall be required to deliver written notice of the Modified Purchase
                                            Order to Distributor who shall have five (5) business days after receipt to cancel the Modified
                                            Purchase Order at the discretion of Distributor.

 

In
the event Manufacturer is unable to fill all of a Purchase Order for any reason, it shall promptly notify Distributor in writing and
Distributor shall have the right, in its discretion to cancel the subject Purchase Order within five (5) business after its receipt of
such written notice. Moreover, if Manufacturer delivers to Distributor updated Written Specifications with respect to Products that are
the subject to a Purchase Order at any time at or prior to Manufacturer’s acceptance of that Purchase Order, Distributor shall
have the right, in its discretion to cancel the subject Purchase Order within five (5) business after its receipt of such written update.

 

    6 

     

    

 

C.       Invoices
and Payment Terms. Manufacturer shall send Distributor invoices via email for each whole or partial Purchase Order shipped. Manufacturer
shall send such invoices to Distributor once the Products are in the possession of the shipping carrier, if shipped by sea, or if shipped
by air, then once the Products are delivered to the Destination (as defined in Section 4.A. below). Distributor shall notify Manufacturer
in writing if Distributor disputes any charges set forth on an invoice within five (5) calendar days after receipt of such invoice, specifying
in reasonable detail the items disputed and basis for the dispute. Thereafter, the Parties will work in good faith to resolve such dispute
as quickly as is reasonably possible. If any such dispute is not resolved within thirty (30) calendar days after Distributor’s
receipt of the applicable invoice, then Manufacturer may suspend any further shipments of the Products under this Agreement until such
time as the dispute is resolved and all amounts agreed upon by the Parties to be due are paid in full. All undisputed amounts on each
invoice are due and payable within either fourteen (14) calendar days from the date the Product is received at the Destination (as defined
in Section 4.A. below) if the Product was shipped by air, or thirty (30) calendar days from the date the shipping carrier has taken possession
of the Product if shipped by sea. Payments due hereunder must be made, at Distributor’s option, by ACH, wire transfer, certified
check, or such other method as may be agreed to by the Parties. Manufacturer reserves the right to change or modify payment terms upon
sixty (60) calendar days’ written notice to Distributor at any time following a default by Distributor of its payment obligations
under this Agreement with such changes or modifications to be effective for Purchase Orders submitted after such sixty (60) calendar
day period.

 

D.       Prices;
Price Reductions; Minimum Purchase Thresholds.

 

		i.	The
                                            price that Distributor shall pay to Manufacturer for each Product order placed by Distributor
                                            and accepted by Manufacturer on or before December 31, 2022 for Products distributed and
                                            sold in the United States shall be as listed on Exhibit A attached hereto. Distributor
                                            agrees to pay Manufacturer the established fixed price per Product identified in Exhibit
                                            A attached hereto, or the price per unit of Product established pursuant to the process
                                            in Section 2.C or in this Section 2.D (as noted), for all Products purchased from Manufacturer.

 

		ii.	Each
                                            calendar year (a “Review Year”), the Parties shall meet in the first half
                                            of the fourth calendar quarter (i.e., October 1 – November 15), but as promptly as
                                            possible on or after October 1st of that Review Year, to negotiate in good faith
                                            to both set such prices for the subsequent calendar year, and to set the minimum quantities
                                            that must be purchased for a Product for such calendar year with respect to all SKUs subject
                                            to an MGO (a “Minimum Purchase Threshold”). Once agreed to and set, the
                                            price and Minimum Purchase Threshold shall not change during such subsequent calendar year.
                                            In such meetings in the fourth quarter of each Review Year, the Parties have no obligation
                                            to share cost or other internal data. For example: (a) if no SKUs were subject to a MGO in
                                            the first calendar year, and if two SKUs become subject to an MGO within the second calendar
                                            year, then the Minimum Purchase Threshold would not be instituted until the third calendar
                                            year and would relate to those two (2) SKUs for that third calendar year; and (b) if in the
                                            third calendar year, one additional SKU becomes subject to an MGO within the third calendar
                                            year, then the Minimum Purchase Threshold would not change during that third calendar year,
                                            and the fourth calendar year Minimum Purchase Threshold would be determined by adding in
                                            the effect of such additional SKU that was subject to an MGO in the third year such that
                                            the Minimum Purchase Threshold would relate to those three SKUs for that fourth calendar
                                            year.

 

    7 

     

    

 

		iii.	If
                                            the Parties cannot agree on a price and/or Minimum Purchase Thresholds for the subsequent
                                            calendar year pursuant to this section by November 15th of a Review Year, then
                                            the price and/or Minimum Purchase Threshold, as applicable, shall not change for the coming
                                            year, unless either Party provides written notice to the other of its election to invoke
                                            the following impasse resolution procedure (“IRP”) on or prior to December
                                            31st of that Review Year. In the event of such a notice, within fifteen (15) calendar
                                            days of the delivery of such notice to the notified Party, each Party shall provide to the
                                            other Party its preferred third-party (each, a “Consultant”) to resolve
                                            the dispute by: (a) with respect to pricing, conducting a transfer pricing, market pricing,
                                            or any other type of suitable study to determine average market pricing for similarly situated
                                            distributors; and (b) with respect to Minimum Purchase Thresholds, conducting a market study
                                            of the total market for the SKUs in question and Distributor’s anticipated market share
                                            thereof, and in each case the types of requested studies must be included in the notice,
                                            along with the estimated fees for the Consultants, the fees for and types of studies to be
                                            conducted, and the estimated timeline for the delivery of the completed price recommendation
                                            from the Consultants. The Consultants to perform each of these two (2) types of studies may
                                            be different persons. Any Consultant must be reputable, independent, and have commercially
                                            reasonable credentials, experience, and qualifications to conduct the required analysis for
                                            the study in question. The Parties shall have fifteen (15) calendar days to reach a good
                                            faith agreement on the Consultants and the types of studies to use. If the Parties cannot
                                            reach an agreement within this fifteen (15) day period, the two Consultants appointed by
                                            the Parties with respect to the study in dispute shall themselves appoint another third-party
                                            to serve as a Consultant. Each such Consultant must be engaged by Distributor, with all fees
                                            to be evenly split between the Parties for such Consultants and studies (i.e., Kaival will
                                            pay the Consultants’ fees, but invoice Manufacturer for half the cost of the Consultants,
                                            which invoices shall be promptly paid). Every Consultant shall be subject to duties of confidentiality,
                                            objectivity, and neutrality in such engagement (which duties shall also be to and for the
                                            benefit of both Manufacturer and Distributor, which shall be specified in such third-party’s
                                            engagement letter in a manner reasonably satisfactory to the Parties), and their findings
                                            shall be binding upon the Parties absent manifest error or mistake of fact. Until any such
                                            Consultant completes its work, the then-current price that Manufacturer charged to Distributor
                                            for the Review Year, and the Minimum Purchase Threshold (if any) for the Review Year, shall
                                            remain in effect; provided, however, that upon receipt by both Parties of the
                                            determination of the IRP, if the price has changed from that price that was charged in the
                                            disputed year, the Party who benefited from the previously-charged price will have sixty
                                            (60) calendar days to provide payment to the other Party for the difference in price (up
                                            or down) for orders accepted in the disputed year and actually paid for at such previous
                                            price (with all unpaid orders being automatically adjusted to the modified price); and provided
                                            further, however, that if this IRP reconciliation results in a refund due to Distributor,
                                            then Manufacturer may elect such payment to take the form of credits against future orders;
                                            provided that such credits must fully compensate Distributor, even if such credits must extend
                                            into future years. Distributor shall use commercially reasonable efforts to cause a Consultant
                                            to complete its report within thirty (30) calendar days after that report’s commission.

 

    8 

     

    

 

		iv.	Notwithstanding
                                            the foregoing provisions of this Section 2.D to the contrary, if this Agreement becomes non-exclusive,
                                            then the IRP process shall not apply, and further, Manufacturer may change the price of the
                                            Products to Distributor in its discretion, so long as, to the extent permitted by law, such
                                            price is generally consistent with, but in no case less favorable than, Manufacturer’s
                                            prevailing price to other similarly situated distributors (e.g., distributors purchasing
                                            a similar volume) at the time.

 

		v.	For
                                            the avoidance of doubt, nothing herein shall restrict Distributor from setting or changing
                                            (i) its own price for the Products to the entities to which Distributor sells the Products,
                                            or (ii) its own list, suggested, minimum advertised or similar prices.

 

E.       Past
Due Amounts. If any undisputed amount due Manufacturer by Distributor, for any reason, becomes past due, Manufacturer shall provide
written notice to Distributor and, if such amounts remain outstanding for fifteen (15) calendar days following receipt of such notice,
Manufacturer may at its option and without further notice withhold further shipments or deliveries of the Products under this Agreement
until such past due invoices are paid in full.

 

3.       Taxes.
Unless otherwise expressly stated in this Section 3: (a) Distributor shall be responsible for any national, state, or local sales, use,
value added, or other tax, tariff or duty (a “Tax”) (except as set forth below as being Manufacturer’s responsibility),
or assessment levied or imposed by the United States or any foreign governmental authority arising out of or related to any of the transactions
contemplated by this Agreement, including sales of the Products to Distributor (a “Tax”), other than taxes based upon
Manufacturer’s income or to the extent resulting from Manufacturer’s failure to establish applicable tax exemptions within
its control; and (b) Distributor must pay directly, or reimburse Manufacturer for, the amount of any Tax that Manufacturer is at any
time obligated to pay or collect with respect to or arising out of the sale of the Products under this Agreement, excluding taxes based
upon Manufacturer’s income or to the extent resulting from Manufacturer’s failure to establish applicable tax exemptions
within its control. Notwithstanding the provisions of the immediately preceding sentence to the contrary, Manufacturer shall be responsible
for all Taxes that are import tariffs and duties resulting from Manufacturer’s sale of the Products to Distributor. For the avoidance
of doubt, each Party is responsible for its own income tax; and Manufacturer (and not Distributor) shall be responsible for and pay any
and all import duties (and other taxes and fees relating to importation) and any cargo insurance costs.

 

		4.	SHIPMENTS;
                                            PRODUCTS; RIGHT OF FIRST REFUSAL ON CHANGE OF CONTROL TRANSACTIONS.

 

A.       Shipment
Terms; Title and Risk of Loss. All of the Products purchased by Distributor under this Agreement will be packaged for shipment in
Manufacturer’s standard containers, marked for shipment or delivery to Distributor at the address specified by Distributor in the
Purchase Order (the applicable destination being hereinafter referred to as the “Destination”).

 

		i.	When
                                            Manufacturer confirms the Purchase Order, it will provide to Distributor the estimated date
                                            (or dates, if the order is broken into batches) when such Purchase Order or portions of such
                                            Purchase Order will be ready for shipment (such date or dates are the “Carrier Possession
                                            Date”). For the avoidance of doubt, Distributor may cancel, in whole or part or
                                            modify, the Purchase Order within ten (10) business days after Manufacturer’s confirmation
                                            or deemed acceptance of the Purchase Order if the Carrier Possession Date is, in Distributor’s
                                            discretion, too far into the future for its business needs.

 

    9 

     

    

 

		ii.	Upon
                                            receipt of the confirmation and information described above, Distributor will promptly inform
                                            Manufacturer of its preferred method of shipping (e.g., shipping carrier and method (e.g.,
                                            air or sea)).

 

		iii.	Upon
                                            receipt of such shipping method preference from Distributor, Manufacturer shall provide Distributor
                                            with shipping quotes, including carrier name, cost, confirming the anticipated Carrier Possession
                                            Date, and expected transit time, for the elected shipping methods.

 

		iv.	Distributor
                                            shall review the shipping quotes provided by Manufacturer and then promptly communicate its
                                            approved shipping method and costs to Manufacturer (“Final Approval Notice”).
                                            Manufacturer shall then ship the Products accordingly.

 

		v.	Manufacturer
                                            shall promptly forward via email to Distributor copies of the original shipping invoices,
                                            and Distributor shall pay such shipping carrier invoices directly to Manufacturer promptly
                                            at least two (2) banking days before the due date on each carrier invoice. Manufacturer shall
                                            manage all other aspects of shipment. Manufacturer (and not Distributor) shall be responsible
                                            for and pay any and all import duties (and other taxes and fees relating to importation),
                                            and cargo insurance costs if Manufacturer elects to carry such coverage, and if these costs
                                            are listed as part of the carrier invoice, then Manufacturer shall pay to the carrier (and
                                            Distributor shall not be responsible for) the portion of the shipping carrier invoice related
                                            thereto. Manufacturer shall have no obligation to release the Products to a shipping carrier
                                            unless and until the Distributor has made the payments required by this Section 4.A.v with
                                            respect to those Products (and shall suffer no penalties or damages to Distributor directly
                                            relating to Distributor’s failure to do so).

 

		vi.	Title
                                            and risk of loss will pass to Distributor upon the delivery of the Products at the Destination.

 

		vii.	Distributor
                                            shall be solely responsible for all costs of shipment for the subsequent sale by Distributor
                                            to Retail Customers and Non-Retail Customers.

 

		viii.	Manufacturer
                                            shall use commercially reasonable efforts to ensure that all Products in a Purchase Order
                                            placed by Distributor are ready for shipment at Manufacturer’s (or its designee’s)
                                            production facility on or before the later to occur of the following (the “Delivery
                                            Target Date”): (a) the relevant Carrier Possession Date; or (b) sixty (60) calendar
                                            days after the date Manufacturer confirms a Purchase Order to Distributor or the Purchase
                                            Order is deemed confirmed as set forth in Section 2.B. Manufacturer shall, as promptly as
                                            practicable, notify Distributor when Manufacturer knows that the Carrier Possession Date
                                            is, or could reasonably be considered to be, no longer accurate in whole or part for the
                                            Products subject to the Purchase Order. When Manufacturer fails to so make Products ready
                                            for shipment by a Delivery Target Date, Manufacturer shall have an automatic extension of
                                            thirty (30) calendar days plus an additional five (5) business days after the Delivery Target
                                            Date to make those Products ready for shipment (the last day of the period of thirty (30)
                                            calendar days plus an additional five (5) business days, the “Extension Deadline
                                            Date”). A late fee of one percent (1.0%) of the total purchase price of Products
                                            that are not ready for shipment by the Extension Deadline Date shall be assessed to Manufacturer
                                            for every complete fifteen (15) calendar day period after the Extension Deadline Date that
                                            elapses until those Products are made ready for shipment by Manufacturer (each, a “Penalty
                                            Period”). For the avoidance of doubt, Manufacturer: (a) is not responsible for
                                            (and will not pay any late fees resulting from) any delays caused by shipping carriers, force
                                            majeure, or changes to the Purchase Order made by Distributor; (b) shall not be charged a
                                            late fee for any partial Penalty Period of less than fifteen (15) days (i.e., if Products
                                            are ready for shipment fourteen (14) days or less into a Penalty Period, no late fee (whether
                                            pro-rated or otherwise) shall be charged with respect to that Penalty Period, but shall be
                                            payable with respect to all previously-completed Penalty Periods relating to those Products,
                                            if any).

 

    10 

     

    

 

		ix.	Any
                                            expense for any special packaging (other than that that relates to compliance with laws for
                                            any particular permitted Market or territory) or any special delivery requested by Distributor
                                            shall be borne by Distributor.

 

B.       Manufacturer’s
Right to Delay or Cancel. Notwithstanding Manufacturer’s obligations in this Agreement, Manufacturer may refuse, cancel, or
delay any shipment of the Products when Distributor is delinquent in any payment for more than (30) calendar days, or when Distributor
is in material breach of its obligations under this Agreement, which has not been cured pursuant to Section 11.A.

 

C.       Acceptance
of Shipments or Deliveries. Distributor shall have ten (10) business days from the date of arrival of the shipment or delivery of
the Products at the applicable Destination or other shipping or delivery location agreed upon by the Parties to inspect the Products
and notify Manufacturer in writing of any discrepancies with respect to such Products, including but not limited to any discrepancies
in the quantity or quality of the Products. The Products with respect to which Distributor does not notify Manufacturer of any discrepancies
in writing shall be deemed accepted by Distributor. Manufacturer shall provide Distributor with proposed inspection procedures for quality
checking the Products upon receipt of the Product, and shall keep such proposed procedures up to date. Distributor shall maintain the
necessary resources (including qualified personnel available) to conduct such inspections within the time allowed. Manufacturer shall
compensate Distributor for any manufacturing and design defects according to the following process: (i) if less than three percent (3.0%)
of the items in a “production batch” are so defective, then notwithstanding anything to the contrary set forth in this Agreement,
Manufacturer shall not be obligated to provide any reimbursement or replacement of those Products to Distributor or its customers; (ii)
if at least three percent (3.0%), but less than ten percent (10.0%), of the items in a production batch are so defective, Manufacturer
shall replace the specific defective items; and (iii) if ten percent (10.0%) or more of the items in a production batch are so defective,
Manufacturer shall replace the entire production batch. With respect to each Product that is replaced by Manufacturer pursuant to the
immediately foregoing sentence, at Manufacturer’s request Distributor shall use commercially reasonable efforts to obtain all replaced
Products and destroy them. Notwithstanding anything to the contrary set forth in this Agreement, Manufacturer shall not be responsible
for any damage to Products caused: (a) by Distributor or any subsequent person in possession of Products failing to store them in accordance
with Manufacturer’s written specifications provided to Distributor in advance; and (b) while they are in a shipping carrier’s
custody or control, but only where (i) the shipping carrier has rejected Manufacturer’s claim for damage against the shipping carrier
and (ii) Manufacturer’s claim against the shipping carrier was materially prejudiced because Distributor did not perform a brief
(but reasonable) visible inspection of the outside of the cargo containers holding the Products at the time after delivery to Distributor
at the Destination and report such claimed damage on the bill of lading, shipment invoice, or similar instrument delivered with the cargo.
For purposes of this Section 4(C), a production batch is the sum total of the Products bearing the same unique production batch number,
which inventory, tracking, and other information shall be maintained by Manufacturer in its ordinary course and which can be reviewed
by Distributor if Distributor reasonably believes there may be defects in a production batch.

 

    11 

     

    

 

D.
       Adding or Deleting the Products; Manufacturing Changes to the Products. Manufacturer shall
have the right at any time upon ninety (90) calendar days’ prior written notice to Distributor to add or delete the Products. Should
Manufacturer want to make any changes to the Products, it shall first notify the Distributor at least ninety (90) calendar days before
the change is implemented, and such changes shall be agreed to by the Parties in writing before shipment or delivery of any Products
that include any such changes. Notwithstanding the foregoing, for changes required by regulatory or certification authorities or otherwise
deemed necessary by Manufacturer for any reason, including health, safety, welfare, technology, intellectual property, trade secret,
competitive, materials sourcing, or other matters, Manufacturer will notify Distributor at least thirty (30) calendar days before the
change is implemented, but Distributor’s approval of such changes shall not be required.

 

E.       Right
of First Refusal for Future Products. The Manufacturer shall offer to the Distributor the right to be the exclusive distributor of
any and all future products that: (a) arise out of or relate to electronic nicotine delivery systems and related components to electronic
nicotine delivery systems (including any variations thereto (e.g., pods)); or (b) arise out of or relate to the nicotine industry (including
but not limited to pouches and other accessories) (collectively, the “Future Products”). For the avoidance of doubt,
Future Products shall include all flavors and variants of a product, but only such products as are, or are to be, distributed for commercial
sale. Notwithstanding the foregoing provisions of this Section 4.E to the contrary, the products or product types listed at Exhibit
C as attached hereto are excluded from the definition of Future Products and this right of first refusal for all purposes (the “Excluded
Products”). At such time when the Manufacturer wishes to distribute any Future Products, it will offer the opportunity to the
Distributor and the parties must engage in good faith negotiations regarding the terms and conditions, including but not limited to pricing
and Minimum Purchase Thresholds, pursuant to which the Distributor will have the exclusive right to distribute Future Products (the “Right
of First Offer”). If after ninety (90) days the parties have been unable to reach an agreement and have acted in good faith,
the Manufacturer may enter negotiations with third parties. If the Manufacturer intends to enter into an agreement with a third party
with respect to distribution of the Future Products, it shall first offer to the Distributor a right of first refusal with respect to
such agreement (each, a “Right of First Refusal”). Distributor must exercise any such Right of First Refusal within
twenty (20) days after the Manufacturer conveys the terms and conditions of such agreement. Exhibit A shall be amended to include
any Future Products to be sold by the Distributor. Notwithstanding anything to the contrary in this Section 4.E., (i) to the extent that,
and only to the extent that, PMI is granted a right of first offer or refusal with respect to Future Products in the Markets for which
Distributor would otherwise have a Right of First Offer or Right of First Refusal under this Section 4.E., then Distributor’s right
shall be a right of second offer/refusal, subordinate only to PMI’s right in the PMI Licensing Agreement (as defined above) and/or
as set forth in the Deed Letter in the Markets which shall not arise or accrue unless and until PMI no longer has a right to such New
Property under the PMI License Agreement; (ii) any Rights of First Refusal may be exercised on a country by country basis; . For the
avoidance of doubt, Distributor’s Right of First Offer and Rights of First Refusal shall not be subordinate to PMI for any country
that is not identified as a “Market” in the PMI Licensing Agreement.

 

    12 

     

    

 

F.       Right
of First Refusal on Manufacturer Change of Control. If the Manufacturer receives an offer that would constitute a Change of Control
Transaction (the “Bona Fide Offer”) and the Manufacturer wishes to accept such Bona Fide Offer, then the Manufacturer
shall give written notice (the “Seller’s Notice”) to the Distributor, which Seller’s Notice must contain
all the terms, conditions, and obligations of the Bona Fide Offer and the identification of the purchaser (the “Buyer”).
The Distributor shall have the irrevocable first right to accept such Bona Fide Offer in place of the Buyer on the same terms and conditions
set forth in the Seller’s Notice. The Distributor’s Right of First Refusal shall extend for a period of ninety (90) days
after delivery of the Seller’s Notice (the “Exercise Period”) to the Distributor. If the Distributor exercises
its rights hereunder and elects to accept the Bona Fide Offer in place of the Buyer, then: (a) the Distributor must send written notice
during the Exercise Period to the Manufacturer indicating the Distributor is accepting the Bona Fide Offer in place of the Buyer on the
terms and conditions set forth in the Seller’s Notice; and (b) the closing for the Distributor’s acceptance of the Bona Fide
Offer in place of the Buyer shall occur at the same time on the same terms and conditions set forth in the Seller’s Notice. For
purposes of this Agreement, the term “Change of Control Transaction” means any of the following: (w) any person, entity,
or “group” (within the meaning of Rules 13(d) and 14(d) under the Securities Exchange Act of 1934) become the beneficial
owner (as defined in Rules 13(d)-3 and 13(d)-5 under the Securities Exchange Act of 1934), directly or indirectly, of more than 50% of
any class of equity interests or ownership interests of Manufacturer; (x) the existing members of the Manufacturer at the time of the
execution of this Agreement (the “Existing Members of the Manufacturer”), its affiliates and/or any trust established
by the Existing Members of the Manufacturer solely for their own benefit and the benefit of their respective spouses and/or issue cease
to own in the aggregate more than 50% of any class of outstanding equity interests or ownership interests in Manufacturer; (y) a sale,
lease, or other disposition of all or substantially all the Manufacturer’s assets; or (z) any consolidation or merger of Manufacturer
with or into any other person, entity, or any other corporate reorganization, in which the Existing Members of the Manufacturer own less
than 50% of any class of equity interests or ownership interests of the surviving entity.

 

		5.	INTELLECTUAL
                                            PROPERTY RIGHTS.

 

A.       Manufacturer’s
Marks. Subject to the terms and conditions of this Agreement, during the term of this Agreement, Manufacturer hereby grants to Distributor
a revocable, sublicensable, non-transferable, non-exclusive, limited license to use Manufacturer’s logos, trademarks, and trade
names, together with all branding and marketing materials created by or on behalf of Manufacturer in connection with the Products, and
the domain www.bidivapor.com (collectively the “Manufacturer IP”), solely in connection with the marketing, advertisement,
and sale of the Products. Such license shall immediately terminate upon the expiration or termination of this Agreement. Distributor
shall strictly comply with all standards of use for the Manufacturer IP and must at all times display appropriate trademark and copyright
notices as instructed by Manufacturer. Distributor acknowledges and agrees that the Manufacturer IP and other intellectual property provided
to Distributor by Manufacturer, if any, are the sole and exclusive property of Manufacturer. Distributor shall not acquire any right,
title, or interest under this Agreement in any patent, copyright, Manufacturer IP, or other intellectual property right of any kind of
Manufacturer. No implied license, patent, copyright, or other intellectual property right of Manufacturer is granted under this Agreement
or otherwise. During the term of this Agreement and thereafter, Distributor shall not do anything that will in any manner infringe, impeach,
dilute, or lessen the value of the Manufacturer IP, patents, copyrights, or other intellectual property of Manufacturer or the goodwill
associated therewith or that will tend to prejudice the reputation of the Manufacturer or the sale of any Products. Without limiting
the generality of the foregoing provisions of this Section 5.A, any domain name created by Distributor that incorporates any Manufacturer
IP shall be the sole and exclusive property of Manufacturer, and Distributor hereby assigns, transfers, and conveys such domain name
to Manufacturer, free and clear of any lien, claim, or encumbrance, subject only to the license set forth above in this Section 5.A.

 

    13 

     

    

 

B.       Distributor
Marks. Subject to the terms and conditions of this Agreement, during the term of this Agreement, Distributor hereby grants Manufacturer
a non-exclusive, royalty free license to use Distributor’s logos, trademarks, and trade names (the “Distributor Marks”)
on Manufacturer’s web sites and marketing materials. Such license shall immediately terminate upon the expiration or termination
of this Agreement. Manufacturer shall strictly comply with all standards of use for the Distributor Marks and must at all times display
appropriate trademark and copyright notices as instructed by Distributor. Manufacturer acknowledges and agrees that the Distributor Marks
and other intellectual property provided to Manufacturer by Distributor, if any, are the sole and exclusive property of Distributor.
Manufacturer shall not acquire any right, title, or interest under this Agreement in any patent, copyright, Distributor Marks, or other
intellectual property right of any kind of Distributor. No implied license, patent, copyright, or other intellectual property right of
Distributor is granted under this Agreement or otherwise. During the term of this Agreement and thereafter, Manufacturer shall not do
anything that will in any manner infringe, impeach, dilute, or lessen the value of the Distributor Marks, patents, copyrights, or other
intellectual property of Distributor or the goodwill associated therewith or that will tend to prejudice the reputation of the Distributor.

 

		6.	CONFIDENTIAL
                                            INFORMATION.

 

A.       Confidential
Information. The Parties acknowledge and agree that during the term of this Agreement, each may receive confidential information
from the other Party. “Confidential Information” shall mean (i) information relating to a Party’s and its affiliates’
products or business including, but not limited to, the business plans, financial records, customers, suppliers, products, product samples,
strategies, inventions, procedures, sales aids or literature, technical data, advice or knowledge, contractual agreements, pricing, price
lists, product white papers, plans, designs, specifications, and know-how or other intellectual property, that may be at any time furnished,
communicated, or delivered by either Party to the other Party whether in oral, tangible, electronic, or other form and (ii) all other
non-public information provided by one Party to the other including, but not limited to, financial, technical, and business information,
and all non-promotional materials furnished by one Party to another.

 

    14 

     

    

 

B.       Exceptions.
The “Receiving Party” shall not have any obligations to preserve the confidential nature of any Confidential Information
that: (i) Receiving Party can demonstrate by competent evidence was rightfully in the Receiving Party’s possession before receipt
from the “Disclosing Party”; (ii) is or becomes a matter of public knowledge through no fault of the Receiving Party;
(iii) is rightfully received by Receiving Party from a third party without, to the best of Receiving Party’s knowledge, a duty
of confidentiality; (iv) is independently developed by Receiving Party without use of the Confidential Information; or (v) is disclosed
by Receiving Party with Disclosing Party’s prior written approval.

 

C.       Use
of Confidential Information; Standard of Care. The Receiving Party shall maintain the Confidential Information in confidence and
disclose the Confidential Information only to its employees, subcontractors, and consultants who have a need to know such Confidential
Information in order to fulfill the business affairs and transactions between the Parties contemplated by this Agreement and who are
under confidentiality obligations no less restrictive as, or who have been advised of the confidentiality obligations set forth in this
Agreement. The Receiving Party shall remain responsible for breaches of this Agreement arising from the acts of its employees, subcontractors,
and consultants to whom it provides the Disclosing Party’s Confidential Information. The Receiving Party shall protect Confidential
Information by using the same degree of care as Receiving Party uses to protect its own information of a like nature, but no less than
a reasonable degree of care, to prevent the unauthorized use, disclosure, dissemination, or publication of the Confidential Information.
The Receiving Party agrees not to use the Disclosing Party’s Confidential Information for its own purpose other than in connection
with the transactions contemplated by this Agreement or for the benefit of any third party, without the prior written approval of the
Disclosing Party. The Receiving Party shall promptly return or certify destruction of all copies of Confidential Information upon request
by the Disclosing Party or upon the expiration or earlier termination of this Agreement.

 

D.       Equitable
Relief. The Receiving Party hereby agrees and acknowledges that any breach or threatened breach of this Agreement regarding the treatment
of the Confidential Information may result in irreparable harm to the Disclosing Party for which there may be no adequate remedy at law.
In addition to other remedies provided by law or at equity, in such event the Disclosing Party shall be entitled to seek an injunction,
without bond, preventing any further breach of this Agreement by the Receiving Party.

 

7.       INSURANCE.
Manufacturer shall maintain, during the term of this Agreement, Commercial General Liability Insurance and Product Liability Policy with
minimum limits, including under any General Liability Umbrella Policies, of not less than $2,000,000 per occurrence limit for bodily
injury and property damage, on the Products purchased by Distributor for resale. Manufacturer shall use commercially reasonable efforts
to provide Distributor with thirty (30) calendar days’ prior written notice of any change or cancellation in any applicable insurance
policies. Manufacturer shall make Distributor an additional insured under each policy.

 

Distributor
shall maintain, during the term of this Agreement, Commercial General Liability Insurance and Products Liability Policy with minimum
limits, including under any General Liability Umbrella Policies, of not less than $2,000,000 per occurrence limit for bodily injury and
property damage. Distributor shall use commercially reasonable efforts to provide Manufacturer with thirty (30) calendar days’
prior written notice of any change or cancellation in any applicable insurance policies. Distributor shall make Manufacturer an additional
insured under each policy.

 

    15 

     

    

 

8.       WARRANTY;
RECALL.

 

A.       Warranty.
  Manufacturer warrants to Distributor, for a period of one (1) year from the date of delivery by Manufacturer to the intended recipient
thereof, that any Products delivered by Manufacturer pursuant to this Agreement shall conform in all material respects to Manufacturer’s
most recent written specifications for such Products that were delivered prior to Manufacturer’s acceptance of a Purchase Order
(“Written Specifications”), and shall be free of defects in materials and workmanship. Manufacturer further warrants
to Distributor that (i) it has title to the Products to be conveyed hereunder and has the right to sell the same and that at the time
of delivery, (ii) such Products shall be free of any security interest or other lien or any other encumbrances whatsoever, (iii) Manufacturer
has the appropriate legal approvals and/or legal authority (including but not limited to any regulatory approvals or licensures that
may be required) at the time of the sale of Products to sell those Products to Distributor; and (iv) on an on-going basis, Manufacturer
must notify Distributor within three (3) business days after its receipt of any Notice of Illegality, provided, that if Manufacturer
fails to do so but an officer of Distributor (other than Nirajjkumar Patel) separately has knowledge of some or all of the information
contained in that Notice of Illegality, Distributor shall be responsible for the portion of those losses that a court, tribunal, or arbitrator
with jurisdiction over the Parties finds could have been avoided as a result of that officer’s knowledge, and Manufacturer shall
be responsible for the remainder of those losses that could have been avoided by providing the Notice of Illegality to Distributor (the
warranties provided in (i), (ii), (iii), and (iv) being hereinafter referred to as the “Limited Warranty”). Except
for the Limited Warranty, Manufacturer makes no warranties or representations to Distributor or any other person with respect to the
Products or any services provided to Distributor or any other person. Manufacturer may not change any of the terms of the Limited Warranty
at any time, without written consent from Distributor. Distributor will not alter the Limited Warranty, warranty disclaimers, and limitation
of liability without the prior written authorization of Manufacturer, nor extend or make any additional warranty or representation regarding
the Products unless expressly authorized by Manufacturer. Manufacturer covenants to use commercially reasonable efforts to limit changes
to Written Specifications to those that are necessary or otherwise consistent with its ordinary course of business.

 

THE
LIMITED WARRANTY REFERRED TO IN THIS SECTION IS THE ONLY WARRANTY, EXPRESS OR IMPLIED, THAT MANUFACTURER MAKES WITH RESPECT TO THE PRODUCTS.
MANUFACTURER SPECIFICALLY DISCLAIMS ALL OTHER IMPLIED WARRANTIES INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

 

B.       Warranty
Claims.  The Limited Warranty is effective only if Distributor gives prompt written notice to Manufacturer of any alleged breach of
the Limited Warranty, which notice shall specifically describe the problem and shall state the date of sale and name and location of
the recipient of the Product originally shipped by Manufacturer. Notwithstanding anything to the contrary contained herein, Manufacturer
shall have no obligation under the Limited Warranty unless it receives such notice within thirty (30) calendar days following the expiration
of the warranty period. In the event of any breach of the Limited Warranty, Manufacturer’s sole obligation is to replace each non-conforming
Product within a reasonable period of time and to pay for the costs of shipment to the original recipient of the Product or as otherwise
specified by Distributor.

 

    16 

     

    

 

C.       Recall.
 In the event that: (i) any applicable federal, state or foreign regulatory authority should issue a request, directive or order that
a Product be recalled; (ii) a court of competent jurisdiction orders such a recall; or (iii) Manufacturer determines that the Product
represents a risk of injury or customer deception or is otherwise defective and that the recall of a Product is appropriate (“Recall”),
Manufacturer shall have the sole right and responsibility for implementing the Recall. Distributor will provide cooperation and assistance
to Manufacturer in connection therewith, as may be reasonably requested by Manufacturer. Manufacturer shall be solely responsible for
all expenses affecting such Recall (including any reasonable out-of-pocket expenses incurred by Distributor in connection with such cooperation,
as directed in writing by Manufacturer), in the event that the Recall is necessitated by a design, manufacturing, or marketing defect
caused by Manufacturer, in which case Manufacturer will compensate Distributor for all Product stock held by Distributor subject to the
Recall at the price paid by Distributor for those Products, with the compensation being paid one-half (1/2) in cash within sixty (60)
days after the Recall and the remaining one-half (1/2) as a credit on future orders. With respect to each Product that is the subject
of a Recall, at Manufacturer’s request Distributor shall use commercially reasonable efforts to obtain all recalled Products and
destroy them, at Manufacturer’s expense unless resulting from a manufacturing, design, or marketing defect caused by Distributor,
in which case the same shall be at Distributor’s expense.

 

D.       Marketing
Denial Orders.  If a Marketing Denial Order or equivalent restriction is declared enforceable or is enforced by the U.S. Food and
Drug Administration or any other U.S. governmental agency, court, or tribunal with jurisdiction (collectively, an “Enforcement
Action”) with respect to any of the Products (the “Affected Products”), and Manufacturer has exhausted all
available legal remedies to reverse the Enforcement Action, then Manufacturer shall repurchase the Affected Products held by, or returned
to, Distributor at the price paid by Distributor to Manufacturer therefor within sixty (60) days after the exhaustion of all legal remedies
(and Distributor shall, at Manufacturer’s direction, either return (at Manufacturer’s expense) the Products repurchased or
destroy them). The foregoing repurchase obligation shall be: (a) subject to a cap of Two Million Dollars ($2,000,000.00) (the “Repurchase
Cap”); and (b) such Repurchase Cap shall be reduced by fifty percent (50%) of Manufacturer’s attorneys’ fees, and
other relevant out of pocket costs and expenses (including, without limitation, expert fees), in challenging the Enforcement Action up
to One Million Dollars ($1,000,000.00).

 

		9.	INDEMNIFICATION.

 

A.       Indemnity
Obligations for Intellectual Property Infringement. Manufacturer agrees to defend, indemnify, and hold harmless Distributor from
and against any and all claims, losses, damages, suits, expenses (including reasonable attorneys’ fees), and costs (collectively
“Claims”) brought or alleged by a third party that the Manufacturer IP or any Products sold to Distributor infringe
any worldwide patent, trademark, or copyright. Notwithstanding any provisions of this Section 9(A) to the contrary, Manufacturer shall
have no indemnity, defense, hold harmless, or other obligation for any Claims under this Section 9(A) if: (i) Manufacturer concludes
that Manufacturer’s IP may infringe another party’s intellectual property as the result of the Freedom to Operate analysis
rendered before selling Products in another country; and (ii) Manufacturer notifies Distributor in writing of the potential infringement,
and Distributor proceeds to sell Products in the country after receiving such written notice. Distributor shall reasonably cooperate
with Manufacturer, its insurance company, and its legal counsel in its defense of such Claims. If the use or sale of any Products furnished
under this Agreement is enjoined as a result of a Claim, Manufacturer shall either obtain on behalf of the Distributor the right to continue
to use or sell such Products, substitute an equivalent product reasonably acceptable to Distributor in its place, or reimburse Distributor
the purchase price of the Products, costs incurred by Distributor as a result of such cancellation, and any and all losses or costs incurred
as a result of Distributor’s breach of any purchaser order or other agreement with its customers. Notwithstanding the foregoing,
this indemnity shall not apply or cover any Claims based upon any infringement or alleged infringement of any patent, trademark, or copyright
resulting from the alteration or unauthorized (by Manufacturer) use of any Manufacturer IP or the Products by Distributor or a Distributor
representative or the combination of any Products with any other products or the combination of any Manufacturer IP with any other mark,
if such infringement claim would have been avoided but for such alteration, combination, or unauthorized use by Distributor or any Distributor
representative. Distributor shall also have the right to participate in the defense of any such action and have the right to hire its
own legal counsel at Distributor’s expense. This indemnity shall not cover any Claims in which Distributor fails to provide Manufacturer
with prompt written notice of the Claim that lack of notice materially prejudices the defense of the Claim.

 

    17 

     

    

 

B.       Distributor
agrees to defend, indemnify, and hold harmless Manufacturer from and against any and all Claims brought or alleged by a third party based
upon any infringement or alleged infringement of any patent, trademark, or copyright resulting from the alteration or unauthorized (by
Manufacturer) use of any Manufacturer IP or the Products by Distributor or a Distributor representative or the combination of any Products
with any other products or the combination of any Manufacturer IP with any other mark, if such infringement claim would have been avoided
but for such alteration, combination, or unauthorized use by Distributor or any Distributor representative. Manufacturer shall reasonably
cooperate with Distributor, its insurance company, and its legal counsel in its defense of such Claims. Manufacturer shall also have
the right to participate in the defense of any such action and have the right to hire its own legal counsel at Distributor’s expense.
This indemnity shall not cover any Claims in which Manufacturer fails to provide Distributor with prompt written notice of the Claim
which lack of notice materially prejudices the defense of the Claim.

 

C.       Manufacturer’s
Additional Indemnity Obligations. Notwithstanding anything herein to the contrary, in addition to all other rights and remedies available
at law or in equity, Manufacturer hereby agrees to defend, indemnify, and hold harmless Distributor from and against any and all third
party Claims (i) arising out of or relating to any manufacturing defects and/or design defects in any Products sold by Manufacturer to
Distributor that are caused by Manufacturer; (ii) arising out of or relating to any marketing defects in any Products sold by Manufacturer
to Distributor where Manufacturer produced, made, wrote, or instituted such marketing material giving rise to the marketing defect; (iii)
arising out of or relating to the negligent acts or omissions or willful misconduct of Manufacturer, its employees, agents, or representatives
with respect to the Products or its performance of this Agreement; (iv) arising out of or relating to the breach of the Limited Warranty
set forth in Section 8(A)(iii). Distributor shall reasonably cooperate with Manufacturer, its insurance company, and its legal counsel
in its defense of such Claims. Distributor shall also have the right to participate in the defense of any such action and have the right
to hire its own legal counsel at Distributor’s expense. This indemnity shall not cover any Claims in which Distributor fails to
provide Manufacturer with prompt written notice of the Claim which lack of notice materially prejudices the defense of the Claim.

 

    18 

     

    

 

D.       Distributor’s
Indemnity Obligations to Manufacturer. Distributor hereby agrees to defend, indemnify, and hold harmless Manufacturer, its affiliates,
and their respective officers directors, employees, and agents from and against any and all Claims: (i) arising out of or relating to
the negligent acts or omissions or willful misconduct of Distributor, its employees, agents, or representatives with respect to its performance
of this Agreement, sale of the Products, or otherwise; (ii) arising out of or relating to the alteration or modification of the Products
or Manufacturer IP by Distributor or its employees, agents, or representatives, or their failure to transport, store, or use the Products
in conformance with Manufacturer’s commercially reasonable written specifications provided to Distributor; (iii) arising out of
or relating to any marketing defects in any Products sold by Manufacturer to Distributor where Distributor produced, made, wrote, or
instituted such marketing material giving rise to the marketing defect; or (iv) alleging that the Distributor Marks infringe or otherwise
violate the intellectual property rights of a third party. This indemnity shall not cover any Claims in which Manufacturer fails to provide
Distributor with prompt written notice which lack of notice prejudices the defense of the Claim. Manufacturer shall also have the right
to participate in the defense of any such action and have the right to hire its own legal counsel at Manufacturer’s expense.

 

E.       Settlement
of Claims. In no event shall a party seeking or entitled to indemnification from a Party hereunder settle, compromise, agree to a
judgment, or take any similar action with respect to any Claim without the written consent of the Party from whom indemnification is
sought.

 

10.       LIMITATION
OF LIABILITY.

 

EXCEPT
FOR THE PARTIES’ INDEMNIFICATION OBLIGATIONS UNDER SECTION 8 OF THIS AGREEMENT AND CONFIDENTIALITY OBLIGATIONS UNDER SECTION 5
OF THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE UNDER THIS AGREEMENT TO THE OTHER PARTY FOR ANY INCIDENTAL, CONSEQUENTIAL,
INDIRECT, STATUTORY, SPECIAL, OR PUNITIVE DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF USE, LOSS OF TIME, INCONVENIENCE,
LOSS OF BUSINESS OPPORTUNITIES, DAMAGE TO GOODWILL OR REPUTATION, OR LOSS OF DATA, REGARDLESS OF WHETHER SUCH LIABILITY IS BASED ON BREACH
OF CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, AND EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR SUCH DAMAGES COULD HAVE
BEEN REASONABLY FORESEEN.

 

11.       TERM.
This Agreement shall commence on the Effective Date and shall end on the tenth annual (10th) anniversary of the Effective
Date (the “Initial Term”) unless earlier terminated pursuant to Section 11 hereof. The Initial Term shall automatically
renew for another ten (10) years (the “Renewal Term”) unless earlier terminated pursuant to Section 11 hereof.

 

    19 

     

    

  

		12.	TERMINATION.

 

A.       Termination
for Breach. Either Party may terminate this Agreement at any time in the event of a material breach by the other Party that remains
uncured after thirty (30) calendar days following written notice thereof. Such termination shall be effective immediately and automatically
upon the expiration of the applicable notice period, without further notice or action by either Party. Termination shall be in addition
to any other remedies that may be available to the non-breaching Party.

 

B.       Termination
for Financial Insecurity. Either Party may terminate this Agreement and any outstanding Purchase Orders (to the extent the Products
have not already been delivered to the carrier for shipment) immediately at its option upon written notice if the other Party: (i) becomes
or is declared insolvent or bankrupt; (ii) is the subject of a voluntary or involuntary bankruptcy or other proceeding related to its
liquidation or solvency, which proceeding is not dismissed within sixty (60) calendar days after its filing; (iii) ceases to do business
in the normal course; or (iv) makes an assignment for the benefit of creditors. This Agreement shall terminate immediately and automatically
upon any determination by a court of competent jurisdiction that either Party is excused or prohibited from performing in full all obligations
hereunder, including, without limitation, rejection of this Agreement pursuant to 11 U.S.C. §365.

 

C.       Termination
for Failure to Meet Minimum Purchase Commitments. A Minimum Purchase Threshold for a given year shall not include any SKUs for which
an MGO has not been granted. If any required Minimum Purchase Thresholds are not met, and such failure to meet the Minimum Purchase Thresholds,
after a commercially reasonable effort by Distributor, is due to factors reasonably beyond Distributor’s control (including, but
not limited to, shipping delays, force majeure, Enforcement Actions, Manufacturer’s refusal or inability to accept Purchase Orders,
or Product defects), then the Minimum Purchase Threshold for the year(s) in which such factors exist shall be reduced to the extent that
Distributor’s sale of Products are directly affected by such factors. If after taking into account such reduction in a given year,
the required Minimum Purchase Threshold is not met for that year, then Manufacturer may provide notice to Distributor that the Agreement’s
exclusivity provisions are no longer applicable, and such provisions shall thereafter no longer be applicable and the rights granted
to Distributor in this Agreement shall become non-exclusive for all purposes; provided, however, that if Distributor’s
first missed Minimum Purchase Threshold is missed by less than fifty percent (50.0%), the Agreement’s exclusivity provisions shall
remain applicable unless and until such deficiency remains uncured within 12 months following written notice thereof. For clarity, Distributor
shall only have one (1) opportunity to cure any failure to meet a Minimum Purchase Threshold, and any subsequent failure with respect
to any Minimum Purchase Threshold shall not be subject to a cure right. If there is a failure to cure such deficiency within such 12
months, then on the day after the cure period has expired, the rights granted to Distributor in this Agreement shall become non-exclusive
for all purposes. Notwithstanding the foregoing, at Manufacturer’s option in its sole discretion, Manufacturer may elect to suspend
the conversion of certain of Distributor’s exclusive rights where permitted under this Section 12.C. upon written notice to Distributor.

 

    20 

     

    

 

D.       Obligations
Upon Termination. Upon termination of this Agreement, Distributor shall cease to be an authorized reseller of the Products and (i)
all unaccepted Purchase Orders may be cancelled by Distributor or Manufacturer without liability, and (ii) Distributor may, at its option,
resell, and deliver to Manufacturer, free and clear of all liens and encumbrances, any or all of the Products that (A) are subject to
Purchase Orders accepted by Manufacturer whether or not the applicable Products have been shipped as of the date of termination and (B)
were manufactured, shipped, or received as of the date of termination, in each case that are in new condition and in the original factory
packaging at the original purchase price of any such Products that Distributor elects to resell to Manufacturer less a restocking charge
of 50% of such amount payable by Manufacturer upon receipt of such Products. Restocking is waived in the event the Manufacturer terminates
Distributor, other than if termination is a “Termination for Breach” as outlined in 11.A. Within ninety (90) calendar days
of termination of this Agreement, Distributor shall remove and not thereafter use any sign, display, or other advertising or marketing
means containing Manufacturer Marks, except as provided in this section. Distributor may continue to use in-store materials containing
the Manufacturer IP as reasonably required for the resale of the Products that may be remaining in Distributor’s possession after
termination, which materials Distributor may continue to utilize until all remaining Products have been sold or one hundred eighty (180)
calendar days after termination, whichever comes first, after which Distributor shall cease the use of any such Manufacturer IP. Notwithstanding
anything herein to the contrary, the Parties agree that the PMI Distribution Rights contributed to KBI as set forth in Section 1(A) or
the Distributor’s requirement to grant the PMI Distribution Rights directly to PMI as required by Deed Letter shall survive the
termination of this Agreement for the duration of the Term including any Extension Period and Sell-Out Period.

 

13.       COMPLIANCE
WITH LAWS. Distributor acknowledges and understands that the Products may be subject to restrictions upon export from the United
States and upon resale after export. Distributor therefore represents and warrants that it shall comply fully with all relevant regulations
of the U.S. Department of Commerce, with the U.S. Export Administration Act, and with any other import and/or export control laws or
regulations of the United States or any other jurisdiction.

 

14.       GENERAL
TERMS.

 

A.       Independent
Contractors. Nothing in this Agreement, and no course of dealing between the Parties, shall be construed to create or imply an employment
or agency relationship or a partnership or joint venture relationship between the Parties or between one Party and the other Party’s
employees or agents. Neither Manufacturer nor Distributor has the authority to bind the other, to incur any liability, or otherwise act
on behalf of the other. Each Party shall be solely responsible for payment of its employees’ salaries (including withholding of
income taxes and social security), workers’ compensation, and all other employment benefits.

 

B.       Assignment.
Except for: (a) the contribution of the PMI Distribution Rights by Distributor to KBI and/or the transfer of the PMI Distribution Rights
from KBI to Distributor; and (b) Distributor providing the PMI Distribution Rights directly to PMI as may be required pursuant to the
Deed of Letter dated even date herewith, neither this Agreement, nor any right or interest herein, may be assigned, in whole or in part,
without the express written consent of the other Party. Any assignment without such consent shall be null and void. Notwithstanding the
foregoing, the Distributor may assign its subcontract its rights or obligations under this Agreement with the prior written consent of
Manufacturer, provided however, that the foregoing does not prohibit the sales and distribution of the Product as contemplated in this
Agreement. Either party may assign this Agreement if the assignment is carried out as part of a merger, restructuring, or reorganization,
or sale or transfer of all or substantially all of a Party’s assets. This Agreement shall be binding upon and inure to the benefit
of the Parties hereto, their successors and legal representatives. Except as set forth in Section 8, there are no third-party beneficiaries
to this Agreement.

 

    21 

     

    

 

C.       Notices.
Unless otherwise agreed to by the Parties, all notices shall be deemed effective when received and made in writing by either (i) certified
mail, return receipt requested, (ii) nationally recognized overnight courier, or (iii) fax with confirmation, addressed to the party
to be notified at the following address or to such other address as such Party shall specify by like notice hereunder:

  

If
to Manufacturer:

 

BIDI
VAPOR, LLC

401
N. WICKHAM RD.

MELBOURNE,
FL 32935 

		Attn:	BIDI
                                            VAPOR - CORPORATE

		Email:	ADMIN@BIDIVAPOR.COM

		Fax:	833-367-2434

 

(with
a copy to, which does not serve as notice):

 

Nelson
Mullins Riley & Scarborough LLP

390
N. Orange Ave., Suite 1400

Orlando,
FL 32801

Attention:
Matt Armstrong

E-Mail:
matt.armstrong@nelsonmullins.com

Fax:
407-425-8377

 

If
to Distributor:

 

Kaival
Brands Innovations Group, Inc.

4460
OLD DIXIE HWY

GRANT-VALKARIE,
FL 32949

		Attn:	KAVL
                                            - CORPORATE

		Email:	ADMIN@KAIVALBRANDS.COM

		Fax:	833-452-4825

 

(with
a copy to, which does not serve as notice):

 

Baker
& Hostetler LLP

200
S. ORANGE AVE., STE 2300

ORLANDO,
FL 32801

Attn:
KEITH DURKIN

		Email:	kdurkin@bakerlaw.com

Fax:
407-841-0168

 

Either
Party, by written notice to the other pursuant to this section, may change its address or designees for receiving such notices.

 

    22 

     

    

 

D.       Force
Majeure. Neither Party shall be liable hereunder for any failure or delay in the performance of its obligations under this Agreement
if such failure or delay is on account of causes beyond its control, including labor disputes, civil commotion, war, fires, floods, inclement
weather, governmental regulations or controls, casualty, government authority, strikes, endemic, pandemic, or acts of God, in which event
the non-performing Party shall be excused from its obligations for the period of the delay and for a reasonable time thereafter. Each
Party shall use reasonable efforts to notify the other Party of the occurrence of such an event within three (3) business days of its
occurrence. Notwithstanding anything to the contrary contained herein, in no event shall the COVID-19 pandemic or government actions
taken in connection with the same (or any future pandemic or government actions taken in connection with the same) constitute an event
of force majeure under this Section 14.D. or otherwise prohibit or restrict Manufacturer’s rights to terminate this Agreement for
failure of Distribute to meet the Minimum Purchase Threshold set forth under Section 12.C. hereof.

 

E.       Governing
Law; Venue; Jury Waiver. This Agreement shall be governed by the laws of the State of Florida, without giving effect to the principles
of conflicts of law of such state and shall be binding upon the Parties hereto in the United States and worldwide. Any claims or legal
actions by one Party against the other arising under this Agreement or concerning any rights under this Agreement shall be commenced
and maintained in any state or federal court located in Orange County, Florida. Both Parties hereby submit to the jurisdiction and venue
of any such court. THE PARTIES FURTHER AGREE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TO WAIVE ANY RIGHT TO TRIAL BY JURY WITH RESPECT
TO ANY CLAIM, COUNTERCLAIM, OR ACTION ARISING FROM THE TERMS OF THIS AGREEMENT.

 

F.       Attorney’s
Fees. If either Party incurs any legal fees associated with the enforcement of this Agreement or any rights under this Agreement,
the prevailing Party shall be entitled to recover its reasonable attorney’s fees and any court, arbitration, mediation, or other
litigation expenses from the other Party.

 

G.       Survival.
The provisions of this Agreement, which by their sense and context should survive any termination of expiration of this Agreement, including
without limitation Sections 6 (confidentiality), 8 (warranty), 9 (indemnification), 10 (limitation of liability), 13 (compliance with
laws), and 14 (general terms) shall so survive.

 

H.       Authorized
Signatories. It is agreed and warranted by the Parties that the individuals signing this Agreement on behalf of the respective Parties
are authorized to execute such an agreement. No further proof of authorization shall be required.

 

I.       Severability.
If any provision or portion of this Agreement shall be held by a court of competent jurisdiction to be illegal, invalid, or unenforceable,
the remaining provisions or portions shall remain in full force and effect.

 

    23 

     

    

 

J.       No
Strict Construction. This Agreement shall not be construed more strongly against either Party regardless of which Party is more responsible
for its preparation.

 

K.       Counterparts.
This Agreement may be executed by facsimile and electronically by DocuSign or digital signature and in one or more counterparts, each
of which will be deemed to be an original, but all of which together will constitute one and the same instrument, without necessity of
production of the others.

 

L.       Entire
Agreement; Modification; Waiver. This Agreement is the entire agreement between the Parties with respect to the subject matter and
supersedes any prior agreement or communications between the Parties hereto, whether written or oral. This Agreement may be modified
only by a written amendment signed by authorized representatives of both Parties. No waiver of any term or right in this Agreement shall
be effective unless in writing, signed by an authorized representative of the waiving Party. The failure of either Party to enforce any
provision of this Agreement shall not be construed as a waiver or modification of such provision, or impairment of its right to enforce
such provision thereafter.

 

[SIGNATURES
ON FOLLOWING PAGE]

 

    24 

     

    

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their duly authorized representatives as of the
last date written below, to be effective on the Effective Date.

 

	 	MANUFACTURER
	 	 
	 	BIDI VAPOR, LLC
	 	 
	 	By:	/s/ Nirajkumar Patel
	 	Name: Nirajkumar Patel
	 	Title: Manager

 

	 	DISTRIBUTOR
	 	 
	 	KAIVAL BRANDS INNOVATIONS GROUP, INC.
	 	 
	 	 
	 	By:	/s/ Eric Mosser
	 	Name: Eric Mosser
	 	Title: Chief Operating Officer

  

    25 

     

    

 

EXHIBIT
A

Exclusive
Distributor Price

 

The
following prices will be valid for all orders placed by Kaival and accepted by Bidi on or before December 31, 2022. Thereafter, the pricing
shall change in the manner set forth in the Agreement.

  

	Product	Exclusive Distributor Price (i.e., price to be paid by Kaival to Bidi)
	BIDI Stick – per Unit  

                                                                                 [***]
	[***]
	Product	Exclusive Distributor Price (i.e., price to be paid by Kaival to Bidi)
	BIDI Acrylic Display  

                                                                                  [***]
	[***]

  

 

As
of the Effective Date of this Agreement, the current flavors are the following (each at 1.4 mL and 6% Nicotine):

 

	 	1.	Arctic
	 	2.	Classic
	 	3.	Dawn
	 	4.	Gold
	 	5.	Marigold
	 	6.	Regal
	 	7.	Solar
	 	8.	Summer
	 	9.	Tropic
	 	10.	Winter
	 	11.	Zest

 

    26 

     

    

 

EXHIBIT
B 

Specifications

 

[***]

 

    27 

     

    

 

EXHIBIT
C 

Excluded
Products from Future Products

 

[***]

 28EXHIBITS 10.24

 

OFFICE / WAREHOUSE / EQUIPMENT LEASE

(NNN)

 

THIS OFFICE / WAREHOUSE
/ EQUIPMENT LEASE (the “Lease”) is made and entered into as of June 10, 2022 (the “Effective Date”),
by and between JUST PICK, LLC, a Florida limited liability company (“Landlord”), as landlord, and KAIVAL
BRANDS INNOVATIONS GROUP, INC., a Delaware corporation (“Tenant”), as tenant.

 

WHEREAS, Landlord
owns the premises located on the property legally described on Exhibit A hereto and by this reference incorporated herein
with an address of 4460 Old Dixie Highway, Grant Valkaria, FL 32949 (the “Land”) and certain furniture, fixtures,
and equipment located therein; and

 

WHEREAS, Landlord
desire to lease to Tenant, and Tenant desires to lease from Landlord, the Land and all improvements thereon, and certain furniture,
fixtures, and equipment located thereat, pursuant to the terms and conditions set forth herein;

 

NOW THEREFORE, in
consideration of the mutual covenants and conditions contained in this Lease, the Parties agree as follows:

 

Article
1. 

LEASE OF PROPERTY

 

1.1
         Lease
of Premises. Landlord leases to Tenant, and Tenant leases from
Landlord, on the terms and conditions set forth in this Lease, the Land and all improvements located thereon (collectively, the
“Premises”), such improvements including, without limitation, the following: (a) an office building containing
approximately one thousand five hundred ninety-five (1,595) square feet, the location of which is generally depicted on Exhibit
B attached hereto and by this reference incorporated herein as the “Office” (the “Office Building”);
and (b) a warehouse building consisting of approximately nineteen thousand seven hundred thirty-seven (19,737) square feet, the
location of which is generally depicted on Exhibit B as the “Warehouse” (the“Warehouse Building”,
and together with the Office Building, each a “Building”, and collectively the “Buildings”).

 

1.2               
Lease of Personal Property. Landlord leases
to Tenant, and Tenant leases from Landlord, on the terms and conditions set forth in this Lease, the furniture, fixtures, and equipment
specifically listed on Exhibit C attached hereto and by this reference incorporated
herein (the “Personal Property”, and together with the Premises, collectively the “Property”).
Tenant acknowledges and agrees that the Personal Property shall be located at all times during the Term at the Premises, and shall
not be moved without Landlord’s prior written consent in each instance, in its sole discretion. Notwithstanding anything
to the contrary set forth in this Lease, Landlord shall not be obligated to replace any Personal Property, whether due to permanent
damaged, obsolescence, or otherwise, and Tenant shall be solely responsible for obtaining and maintaining its own replacement personal
property to satisfy its needs at the Premises, which replacement personal property shall be and remain the property of Tenant if
obtained by Tenant.

 

    	 

    	 

    

  

Article
2. 

TERM

 

2.1               
Initial Term. The Property are leased to Tenant for an initial term (the “Initial
Term”) of one (1) year, commencing at 12:01 A.M. on the Effective Date and ending at 11:59 PM on the day immediately
prior to the first (1st) anniversary of the Effective Date (the “Initial Expiration Date”), unless
sooner terminated in accordance with the provisions of this Lease.

 

2.2               
Renewal. This Lease shall automatically renew
beyond the Initial Term as follows:

 

(a)                
Unless Tenant delivers a written notice of termination to Landlord at least thirty (30) days
prior to the Initial Expiration Date, then subject only to Section 2.2(c), this Lease shall automatically extend for a period
of five (5) additional years (the “First Renewal Term”), commencing at 12:01 A.M. on the first (1st)
anniversary of the Effective Date and ending at 11:59 PM on the day immediately prior to the sixth (6th) anniversary
of the Effective Date (the “First Renewal Expiration Date”), subject to under the terms and conditions contained
in this Lease.

 

(b)                
Tenant, in its sole and absolute discretion, shall have one (1) option to extend the Term
for a period of five (5) years immediately following the First Renewal Term (the “Second Renewal Term”, and
together with the First Renewal Term, each a “Renewal Term”) for a period of five (5) additional years commencing
at 12:01 AM on the sixth (6th) anniversary of the Effective Date and ending at 11:59 PM on the date immediately prior
to the eleventh (11th) anniversary of the Effective Date, subject to under the terms and conditions contained in this
Lease. Tenant’s option to renew this Lease for the Second Renewal Term must be exercised by Tenant delivering written notice
of its election to Landlord at least four (4) months prior to the First Renewal Expiration Date. Base Rent for the Second Renewal
Term shall be adjusted to an amount equal to the current fair market rental rate for reasonably-comparable premises in similarly
situated rental areas in the rental market of Brevard County, Florida, at the time that the Second Renewal Term is to commence,
together with reasonably forecasted annual adjustments (“Market Annual Rent”). With reasonable promptness following
Tenant’s timely delivery of a written notice to extend the Term for the Second Renewal Term, Landlord and Tenant shall cooperate
in good-faith to determine the Market Annual Rent, and if Landlord and Tenant cannot agree on Annual Market Rent during the thirty
(30) day period after delivery of that notice to Landlord, then a qualified independent certified appraiser shall be promptly employed
to determine the Market Annual Rent (the “Appraiser”). If Landlord and Tenant do not promptly agree on the identity
of the Appraiser, both Landlord and Tenant shall each appoint a qualified independent certified appraiser, and the two appointed
appraisers shall select a third qualified independent certified appraiser to serve as the Appraiser. An appraisal made by the Appraiser
pursuant to this Section 2.2(b) shall be final and binding on both Landlord and Tenant, absent manifest error or mistake
of fact. The cost of the Appraiser shall be borne equally by Landlord and Tenant. Once Landlord and Tenant agree on Market Annual
Rent, or Market Annual Rent is determined by the Appraiser, Landlord and Tenant agree to promptly execute an amendment to this
Lease in reasonable form and substance to reflect the amount of Market Rent for the applicable portion of the Additional Term if
one party requests such an amendment.

 

    	2

    	 

    

 

(c)                
Notwithstanding the foregoing provisions of this Section 2.2 to the contrary:

 

(i)                  
If any Event of Default exists and is continuing at any time within the thirty (30) day period
immediately prior to the commencement of the applicable Renewal Term, Landlord may (but is not required to) reject a Renewal Term
by delivering written notice thereof to Tenant, in which case the Lease shall not be renewed for such Renewal Term and shall terminate
upon the conclusion of the then-current Term.

(ii)                
If at any time during the Term, the U.S. Food and Drug Administration issues one or more non-appealable
and binding enforcement orders mandating that all eleven (11) current stock keeping units (or “SKUs”) for the “Bidi
Stick” manufactured by Bidi Vapor, LLC (i.e., all eleven (11) current flavors) must be removed from the U.S. market, then
Tenant may terminate this Lease by delivering a written notice of termination to Landlord at least thirty (30) days prior to the
desired date of termination.

 

(d)                
References in this Lease to the “Term” shall mean the Initial Term and,
to the extent exercised, each Renewal Term, and references in this Lease to the “Expiration Date” shall mean
the last day of the Term.

 

2.3               
Lease Year. As used herein, the term “Lease
Year” shall mean a period of one (1) year. Each Lease Year shall commence on the Effective Date (in the case of the first
(1st) Lease Year) or an anniversary of the Effective Date (in the case of all subsequent Lease Years), and end on the
date immediately prior to the next anniversary of the Effective Date.

 

Article
3. 

RENT

 

3.1               
Base Rent. Tenant shall pay base rent for
the Property (“Base Rent”) during the Term as follows, without demand, deduction, or offset, plus all sales,
use, transaction privilege, or other excise tax that may at any time be levied or imposed upon, or measured by, any amount payable
by Tenant under this Lease:

 

	Term:	Lease Year:	Annual Base Rent:	Monthly Base Rent:
	Initial
Term	Year
1	$213,320.001	$17,776.67
	First
Renewal Term   (if
applicable)	Year
2	$223,986.00	$18,665.50
	Year
3	$234,652.00	$19,554.33
	Year
4	$245,318.00	$20,443.17
	Year
5	$266,650.00	$22,220.83
	Year
6	$287,982.00	$23,998.50
	Second
Renewal Term   (if
applicable)	Years
7-11	Market Annual Rent	One twelfth (1/12) of Market Annual Rent

 

    	3

    	 

    

 

3.1               
Payment of Base Rent. Base Rent shall be payable
in equal monthly installments in advance, commencing on the first full calendar month of the Term, and continuing on the first
(1st) day of each subsequent calendar month until the Expiration Date; provided,
however, that in the event that: (a) the Effective Date falls on any date
other than the first day of a calendar month, the Base Rent will be prorated for that month and shall be due and payable on the
Effective Date; and (b) the Expiration Date falls on any date other than the last day of a calendar month, the Base Rent will be
prorated for that month and shall be due and payable on the first day of that month. 

 

3.2               
Operating Expenses. 

 

(a)                
Tenant shall pay one hundred percent (100%) of all costs, fees, charges, and expenses incurred
by, or charged to, Landlord in connection with the ownership, operation, maintenance and repair of, and services provided to, the
Property, except for the costs, fees, charges, expenses, and obligations assumed by Landlord pursuant to this Lease or set forth
in Section 3.3(b) (collectively, “Operating Expenses”), which shall constitute additional rent hereunder.
Operating Expenses include, without limitation, all of the fees, charges, and expenses incurred by, or charged to, Landlord in
connection with the following: (i) the Insurance Premiums, together with the cost of any deductible paid by Landlord in connection
with an insured loss (provided, that any such deductible shall be amortized over the entire period of the estimated economic useful
life of any improvement replaced by the insurance proceeds associated with that deductible, determined in accordance with generally
accepted accounting principles); (ii) Taxes; (iii) Landlord’s cost to maintain the Property, except as otherwise expressly
set forth in this Lease; (iv) the annual amortization (over their estimated economic useful life determined pursuant to generally
accepted accounting principles) of the costs (including reasonable financing charges) of capital improvements or replacements to
the Premises on a straight-line basis pursuant to generally accepted accounting principles: (v) a management and administrative
fee not to exceed three percent (3%) of annual Base Rent for the Lease Year in question; and (vi) exterior painting of the Buildings.

 

(b)                
Notwithstanding the foregoing provisions of this Section 3.2 to the contrary, Operating
Expenses will not include the following: (i) depreciation on the Buildings or the Property; (ii) financing and refinancing costs
(except as provided above), interest on debt or amortization payments on any mortgage, or rental under any ground or underlying
lease; (iii) leasing commissions, advertising expenses, tenant improvements or other costs directly related to the leasing of the
Property; (iv) income, excess profits or corporate capital stock tax imposed or assessed upon Landlord, unless such tax or any
similar tax is levied or assessed in lieu of all or any part of any taxes includable in Operating Expenses above; (v) salaries
and overhead of personnel employed by Landlord; (vi) expenses for repair or replacement covered by warranties, and any costs due
to casualty that are covered by insurance carried by Landlord or that would have been covered by insurance that Landlord is required
to carry under this Lease; (vii) repairs or replacements caused by Landlord’s negligence or willful misconduct, or the negligence
or willful misconduct of Landlord’s servants, agents, or employees; (viii) rent and other payments by Landlord under any
ground lease or other lease underlying this Lease; (ix) payments to servants, agents, or employees of Landlord for services to
the Property for supplies or other materials to the extent that the cost of such services, supplies, or materials exceed the cost
which would have been paid had the services, supplies or materials been provided by unaffiliated parties on a competitive basis;
(x) expense reserves; and (xi) tax or assessment expenses in excess of the amount which would be payable if such tax or assessment
expense were paid in installments over the longest possible term. To the extent it is property qualified, licensed, and insured,
as applicable, Landlord shall have the right to directly perform (by itself or through an affiliate) any services provided under
this Lease provided that the Landlord’s charges included in Operating Expenses for any such services shall not exceed competitive
market rates for comparable services. 

 

    	4

    	 

    

 

3.3               
Payment of Operating Expenses; Reconciliation.
Operating Expenses shall be payable in equal monthly installments, commencing on the first (1st) full month of the Term,
and continuing on the first day of each subsequent month until the Expiration Date. In the event that the Effective Date falls
on any date other than the first (1st) day of a calendar month, Operating Expenses will be prorated for that month and
shall be due and payable on the Effective Date, and Operating Expenses will be prorated for the last month of the Term if the Expiration
Date falls on any date other than the last day of a calendar month. In Landlord’s discretion, it may elect to charge Operating
Expenses once per Lease Year, in arrears, when Landlord delivers the statement set forth in Section 3.2(c) (in which case the reconciliation
set forth in that section shall not be necessary except to the extent necessary as a result of a permissible audit). 

 

(a)                
By April 30th of each Lease Year (and as soon as practical after the expiration or termination
of this Lease), Landlord shall provide Tenant with a statement of the Operating Expenses for the preceding Lease Year or part thereof.
Within thirty (30) days after delivery of the statement to Tenant, Landlord or Tenant shall pay to the other the amount of any
overpayment or deficiency then due from one to the other. Landlord’s and Tenant’s obligation to pay any overpayment
or deficiency due the other pursuant to this Section shall survive the expiration or termination of this Lease. In the event that
all Operating Expenses for any Lease Year are more than five percent (5%) greater than the actual Operating Expenses for the immediately
preceding Lease Year, then within thirty (30) days after Tenant’s receipt of Landlord’s statement setting forth actual
Operating Expenses for the Lease Year in question, Tenant shall have the right to review and inspect, at Landlord’s local
offices and at Tenant’s expense, Landlord’s accounts and records relating to those Operating Expenses; provided, however,
that for this purpose a partial Lease Year’s Operating Costs shall be considered to be the total Operating Costs that would
have been charged for an entire calendar year based on the actual Operating Costs for such partial Lease Year).

 

3.4               
Late Payment; Interest. In the event that
any payment of Base Rent, Operating Expenses, or any other sum due hereunder is not paid within ten (10) days after the date that
such payment is due, Tenant shall be responsible for, and shall pay: (a) a late payment fee equal to five percent (5%) of the amount
due (except when Tenant pays the administrative charge set forth in Section 15.2(a));
and (b) interest on such unpaid portion at a rate equal to the lesser of the highest rate permitted by applicable law or ten (10.0%)
(the “Interest Rate”) with interest commencing on the date that the payment was due (provided,
however, that no interest is due and payable if the amount is paid within
ten (10) days after the date it is due).

 

    	5

    	 

    

 

Article
4. 

INSURANCE

 

4.1               
Liability Insurance. Tenant agrees to procure and maintain a policy or policies of
liability insurance, at its own cost and expense, insuring Landlord and Tenant from all claims, demands, or actions for injury,
death, or damage to property sustained by one or more persons as a result of any one occurrence in the amount of One Million Dollars
($1,000,000.00) combined single limit per occurrence and Two Million Dollars ($2,000,000.00) in the aggregate arising from, related
to, or connected with the conduct and operation of Tenant’s business at the Premises. The policy limits requirement may
be satisfied by primary general liability insurance or a combination of primary general and excess umbrella liability insurance.
Such insurance shall: (a) be endorsed to name Landlord as named insured and this status shall be reflected on the Tenant’s
certificate of insurance delivered to the Landlord; (b) not be subject to cancellation except after at least ten (10) days’
prior written notice to Landlord; and (c) be written on an “occurrence” basis and not on a “claims made”
basis and shall be endorsed to provide that it is primary to and not contributory to any policies carried by Landlord. The policy
or policies, or duly executed certificate or certificates for the same, together with satisfactory evidence of the payment of
premium thereon, shall be deposited with Landlord both before Tenant takes possession of the Premises, as well as upon any renewal
of said insurance, not less than thirty (30) days prior to the expiration of the term of such insurance.

 

4.2               Property
Insurance. Landlord shall maintain a policy or policies of insurance, in the amount of the full replacement value of the Buildings
and the other improvements on the Land, and insuring the Buildings and the other improvements on the Land against loss or damage
by fire, wind and storm damage, explosion or other such hazards or risks in a standard extended coverage policy. In Landlord’s
discretion, Landlord may include the Property in such policy or policies as covered property. Landlord shall provide to Tenant
a detailed accounting of the cost of all premiums with respect to such policy or policies (each, an “Insurance Premium”).
The cost of each Insurance Premium for such policy or policies that is attributable to the Term shall be payable by Tenant to
Landlord as an Operating Expense. 

 

4.3               
Tenant’s Personal Property Insurance; Other Insurance. Tenant shall be solely
liable hereunder for insuring Tenant’s personal property. Tenant shall also maintain a policy of business interruption insurance
so as to cover Tenant’s obligations hereunder. 

 

    	6

    	 

    

 

4.4               
Subrogation. Landlord and Tenant hereby waive
any rights each may have against the other on account of any loss or damage occasioned by either Landlord or Tenant, as the case
may be, their respective property, the Premises, or its contents or to other portions of the Buildings or the Land, or to the
Property, arising from any risk actually covered or to be covered by the insurance policies required hereunder. Landlord and Tenant
hereby release each other from any and all liability or responsibility to the other or anyone claiming through or under them by
way of subrogation or otherwise for any loss or damage to property caused by fire or any of the extended coverage or supplementary
contract casualties, even if such fire or other casualty shall have been caused by the fault or negligence of the other party,
or anyone for whom such party may be responsible. If required by either party, Landlord or Tenant shall use commercially reasonable
efforts to have all such property insurance policies which may be carried by it endorsed with a clause providing that any release
from liability of, or waiver of claim for recovery from, the other party entered into in writing by the insured thereunder prior
to any loss or damage shall not affect the validity of said policy or the right of the insured to recover thereunder, and providing,
further that the insurer waives all rights of subrogation which such insured may have against the other party.

 

Article
5. 

UTILITIES, AND TAXES AND ASSESSMENTS

 

5.1               
Utilities. Landlord at its expense agrees to make available to Tenant water, sewer,
phone and electrical services to the Premises as of the Effective Date. Tenant shall be liable and agrees to pay the charges for
all public utility services rendered or furnished to the Premises, including, but not limited to heat, water, electricity, sewer,
and sewage treatment facilities, and shall obtain all such service in its own name and timely pay all charges directly to the
provider. Landlord shall not be responsible or liable for any interruption in such services except to the extent caused by the
negligence or willful misconduct of Landlord, nor shall such interruption affect the continuation or validity of this Lease. Any
wiring, cabling or other equipment necessary to connect Tenant’s telecommunications equipment shall be Tenant’s responsibility
and shall be installed in a manner approved by Landlord, such approval not to be unreasonably withheld, conditioned, or delayed.

 

5.2               
Taxes and Assessments. For purposes hereof, “Taxes” shall mean
all real estate and/or property taxes, rates, levies, charges and assessments, general and special, ordinary and extraordinary,
of every kind and nature whatsoever, whether now known to law or hereafter created, which are levied, assessed, imposed or become
due and payable during the Term (and, if attributable to a period of time, to the extent attributed to the Term) upon: (a) the
Land; (b) the Buildings and the other improvements located on the Land; (c) the Property; (d) the leasehold estate hereby created;
and/or (e) or arising with respect to the occupancy, use, or possession of the Premises, and/or the use and possession of the
Personal Property, by Tenant. Landlord shall use commercially reasonable efforts to minimize, reduce, protest, negotiate or otherwise
adjust Taxes. Any cost incurred by Landlord in an effort to minimize, reduce, protest, negotiate or otherwise adjust any real
estate tax bill, tax assessment or assessed valuation, including the cost of appraisals, witness fees and attorneys’ fees
related thereto, shall be included in the definition of Taxes (provided, however, that such costs shall not result in a net overall
increase to the amount of Taxes). If a special assessment is payable in installments, Taxes for any year shall include the installment
of such assessment for that year to the extent of the length of the Term that occurs during such year. If at any time during the
Term, the methods of taxation prevailing at the commencement of the Term shall be changed or altered so that in lieu of, in addition
to, or as a substitute for the whole or any part of the taxes now levied, assessed or imposed on real estate, there shall be levied,
assessed or imposed a different method of taxation, then the same shall be included in the definition and computation of
Taxes hereunder. Anything contained in this Lease to the contrary notwithstanding, Tenant shall not be obligated to pay, and Operating
Expenses shall not include, any succession, transfer, gift, franchise, income, estate, or inheritance taxes or impositions which
may be levied upon, required to be collected by, or assessed against Landlord. Expiration of the Term shall not affect Tenant’s
obligation to pay Taxes with respect to any deficiency in Tenant’s payment thereof for the final Lease Year.

 

    	7

    	 

    

 

Article
6. 

SUBLEASING OR ASSIGNMENT

 

6.1               
Assignment With Consent. Tenant shall not assign, sell, transfer, sublease, or mortgage
its interest in this Lease without the prior written consent of the Landlord, which consent shall not be unreasonably withheld,
conditioned, or delayed so long as both: (a) the transferee has a net worth at least equal to or greater than Tenant at the Effective
Date hereof, calculated in accordance with generally accepted accounting principles as applied in the United States; and (b) no
Event of Default has occurred and is continuing.

 

6.2
       Requirements. If Tenant requests Landlord’s consent to assign, sell, transfer, or sublease its interest in the Lease,
Tenant shall provide Landlord, at least fifteen (15) days prior to the proposed transaction, current financial statements of the
transferee certified by an executive officer of the transferee, a complete copy of the proposed transfer or sublease documents,
and any other information Landlord reasonably requests. Immediately following any approved sale, assignment, transfer, or sublease,
Tenant shall deliver to Landlord an assumption or sublease agreement (as applicable) reasonably acceptable to Landlord executed
by Tenant and the transferee, together with a certificate of insurance evidencing the transferee’s compliance with the insurance
requirements of Tenant under this Lease. Tenant agrees to reimburse Landlord for reasonable administrative and attorneys’
fees in connection with the processing and documentation of any sale, transfer, assignment, or sublease for which Landlord’s
consent is requested.

 

Article
7. 

ALTERATIONS, REPAIRS AND MAINTENANCE

 

7.1               
Alterations and Improvements. 

 

(a)                
Tenant shall not make any structural or exterior changes in, or additions or alterations to
the exterior of, the Premises, or any additions or alterations to the Personal Property, without Landlord’s prior written
consent, which consent shall not be unreasonably withheld, conditioned, or delayed. 

 

(b)                
Tenant shall not make any material interior change in, or addition or alteration to the interior
of, the Premises that either: (i) costs in excess of Twenty-Five Thousand Dollars ($25,000); (ii) either cannot be removed by Tenant
at the end of the Term such that the Premises cannot be restored by Tenant to the same condition as it exists on the Effective
Date; or (iii) requires work within the walls, below the floor or above the ceiling, in each case without Landlord’s prior
written consent, which consent shall not be unreasonably withheld, conditioned, or delayed. 

 

    	8

    	 

    

 

(c)                
If Landlord consents to any changes, additions, or alterations, or such changes, additions,
or alterations are otherwise permitted, they shall be made at Tenant’s sole cost and expense and shall be performed in a
first-class and workmanlike manner on a level consistent with the age and condition of the Buildings and other improvements comprising
the Premises on the Effective Date, or of the Personal Property, as applicable, and in accordance with all applicable legal and
insurance requirements and the terms and provisions of this Lease. Upon completion of changes, additions, or alterations to the
Premises, Tenant shall deliver to Landlord: (i) a sworn affidavit from Tenant and its general contractor (if Tenant is not acting
as its own general contractor) in form and substance reasonably acceptable to Landlord stating – (A) in reasonable detail
the actual costs paid by Tenant for construction and completion of the alterations, (B) the names and addresses of all architects,
contractors, subcontractors or suppliers in respect of the alterations, and (C) that all of the persons identified in the sworn
affidavit required pursuant to clause (i)(B) have been paid in full; and (ii) full and final mechanic’s lien waivers, in
form and substance reasonably acceptable to Landlord, from each person identified in the sworn affidavit required pursuant to clause
(i)(B). 

 

(d)                
Changes, alterations, additions, and improvements to the Property made by Tenant shall become
the property of the Landlord upon the Expiration Date unless Tenant, prior to the Expiration Date, removes such improvements and
restores the Property to the same condition as existed on the Effective Date.

 

7.2               
Tenant’s Duty to Repair, Maintain and Replace. Except for Landlord’s responsibilities
set forth in Section 7.3, Tenant covenants and agrees to keep and maintain the Property in good order, condition and repair
including, without limitation, such maintenance and repair as may be needed to keep the Buildings, the exterior areas of the Premises
(which shall include any landscaped areas as well as the parking lot, walkways, and sidewalks, if any), and automatic gates at
the access point of the Premises in good order, condition, and repair and in substantially the same order, condition, and repair
as they were as of the Effective Date, reasonable wear and tear and damage from fire and other casualty for which insurance has
been procured (or is required to be procured pursuant to this Lease) excepted. Tenant shall not overload the electrical, water
and/or plumbing facilities serving the Premises. Tenant, at its cost, shall purchase and maintain throughout the Term a maintenance
contract for a reputable company or companies providing maintenance of the plumbing, heating, ventilation, air-conditioning, and
fire sprinkler and suppression systems or equipment serving the Premises (collectively, the “Equipment”), in
accordance with the manufacturer’s suggested service and maintenance requirements and all requirements of applicable laws,
and shall be responsible for the costs of any required repairs, maintenance, and replacement of the Equipment (but, in any event,
no less than quarterly service).

 

    	9

    	 

    

 

7.3               
Landlord’s Duty to Repair and Replace Interior and Exterior Structural Issues
and Other Items. Landlord covenants and agrees to: (a) keep and maintain the
Buildings’ foundations, outer walls, footings, structural steel columns, and girders, and roof at Landlord’s sole
expense and not as an expense of Tenant or as an Operating Expense; and (b) make any necessary replacements to the Equipment,
the cost of which shall be considered an Operating Expense in the manner set forth in Section 3.2(a)(iv).
Landlord, at its sole expense and not as an expense of Tenant, shall perform or cause to be performed any and all repairs and
replacements which are the responsibility of Landlord necessary to restore the Premises and other areas for which Landlord is
responsible to a state of good condition and repair. Landlord shall complete such repairs within sixty (60) days after Landlord
has received written notice from Tenant of such state of disrepair, or if such repairs cannot reasonably be completed within such
sixty (60) day period, Landlord shall commence such repairs within sixty (60) days after notice and proceed diligently thereafter.
Landlord agrees to use commercially reasonable efforts to minimize disruption to or interference with Tenant’s use and enjoyment
of the Premises in making repairs or replacements or in maintenance. In the event of an emergency, Tenant shall have the right
to prosecute immediately any and all necessary repairs and shall deliver contemporaneous notification to Landlord of the emergency
and related repairs and offset the reasonable cost of such repairs against the next monthly installment or installments of Base
Rent due hereunder; provided, however,
that if contemporaneous notice is not practicable, as determined by Tenant in its reasonable judgment, then Tenant shall provide
such notice as soon thereafter as reasonably practicable. Notwithstanding the foregoing provisions of this Section 7.3
to the contrary, Landlord shall not be obligated to make any repairs or replacements
referenced in this Section 7.3 to the extent that those repairs to these
components are caused by Tenant, any subtenant, or its or their respective agents, contractors, servants, employees, subtenants,
concessionaires or licensees, in which case Landlord shall make repairs and Tenant shall be reimburse Landlord within ten (10)
days of receipt of Landlord’s invoice therefor.

 

7.4               
Tenant’s Failure to Maintain, Repair or Replace.
If Tenant shall refuse or neglect to commence or complete any item of maintenance, repair or replacement necessary to keep the
Property in good condition and repair during the Term hereof as required by Section 7.2
(including, without limitation, a suitable contract for maintenance of the Equipment), Landlord may, but shall not be required
to, arrange for such maintenance, repair or replacement to be performed, and present an invoice or invoices evidencing the cost
thereof to Tenant for immediate payment as additional rent hereunder. For non-emergency repairs, Landlord shall provide Tenant
with a ten (10) business day prior written notice of Landlord’s intent to repair, should Landlord decide to repair pursuant
to this section. 

 

Article
8. 

LIENS

 

8.1               
Liens not Permitted. Tenant shall not do anything or cause anything to be done whereby
the Property or any portion thereof may be encumbered by any mechanic’s or other material liens. If a lien is filed against
any Property purporting to be for labor or materials furnished or to be furnished to the Tenant, the Tenant shall remove the lien
of record by the payment or by bonding with a surety company authorized to do business in the State of Florida, within thirty
(30) days from the date of the filing of said mechanic’s or other lien. Should the Tenant fail to take the foregoing steps
within said thirty (30) day period, then the Landlord shall have the right, among other things, to pay said lien without inquiring
into the validity thereof, and the Tenant shall immediately reimburse the Landlord for the total expense incurred by it in discharging
said lien including (without limitation) any reasonable attorneys’ fees and costs incurred by the Landlord in doing so.

 

    	10

    	 

    

 

Article
9. 

USE

 

9.1               
Permitted Use. Tenant may use the Property for warehousing, storage, and general office
uses, and all other related or ancillary purposes (the “Permitted Use”), and for no other use. Tenant shall
not use the Property for the purposes of storing, manufacturing or selling any explosives, flammables, or other inherently dangerous
substance, chemical, thing or device, except for items used in Tenant’s ordinary course of business on the Effective Date.
Tenant shall, at its expense, promptly comply with all applicable laws now or subsequently pertaining to Tenant’s use of
the Property or occupancy of the Premises. Neither Tenant nor its servants, employees, or agents shall use the Premises in any
manner that under any applicable law would require Landlord to make any alteration to or in the Building (without limiting the
foregoing, Tenant shall not use the Premises in any manner that would cause the Premises or any Building to be deemed a “place
of public accommodation” under the Americans with Disabilities Act of 1990 (42 U.S.C. § 1201 et seq.), as amended
and supplemented from time to time, if such use would require any such alteration).

 

9.2               
Hazardous Substances. Tenant, its servants, agents or employees, shall not treat,
store, or dispose of any hazardous, special, or medical wastes on the Premises except in compliance in all material respects with
applicable local, state or federal laws or regulations relating to protection of the environment or pollution (the “Environmental
Laws”). For the purposes of this Lease, the term “store” shall be defined in the same manner as that used
in the Resource Conservation and Recovery Act, as amended and the applicable regulations under that act. Tenant shall promptly
notify Landlord of any notice, claim, report of violation, or other matter of similar import received by Tenant from the U.S.
EPA, the Florida Department of Environmental Protection, or any other governmental body having jurisdiction, which relates to
or arises from any actual or alleged pollution, spill, discharge or other release of hazardous materials on the Premises. Tenant
shall indemnify Landlord and its successors and assigns against and hold them harmless from any liabilities, claims, demands,
and out-of-pocket costs, response costs, and expenses (including reasonable attorney’s fees, site remedial investigation
or feasibility studies, site clean-up, or defense costs) which relate to the Premises and arise by reason of any act or omission
of Tenant or its employees, agents, contractors, vendors, or customers in breach of Tenant’s obligations under this Section,
or by reason of the breach of Tenant’s obligations under any Environmental Law. Landlord shall indemnify Tenant and its
successors and assigns and hold them harmless from any liabilities, claims, demands, and out-of-pocket costs, response costs,
and expenses (including reasonable attorney’s fees, site remedial investigation or feasibility studies, site clean-up, or
defense costs) to the extent they relate to the Premises and arise by reason other than a breach of Tenant’s obligations
under this Section or any Environmental Law, including with respect to any hazardous materials existing on, under, in or about
the Premises on or before the Effective Date.

 

    	11

    	 

    

 

Article
10. 

SIGNS

 

10.1           
Signage. All Tenant signage shall be subject to the approval of Landlord (not to be
unreasonably withheld, conditioned, or delayed by Landlord) and the applicable governmental authorities. Tenant shall have the
right to install signage on the Premises, at its expense, at a location and of a design as shall be approved by Landlord (such
approval not to be unreasonably withheld, conditioned, or delayed). Signage must always be in good operating condition. Tenant
shall be obligated, at its expense, to obtain any governmental permit required with respect to any sign to be placed by Tenant
on the Premises on or after the Effective Date, and such sign shall comply with all applicable governmental or quasi-governmental
ordinances, rules and regulations.

 

Article
11. 

SUBORDINATION; ESTOPPEL CERTIFICATE AND QUIET ENJOYMENT

 

11.1           
Subordination. Landlord reserves the right
and privilege to subject and subordinate this Lease at all times to the lien of any mortgage or mortgages now or hereafter placed
upon the Landlord’s interest on any Property, provided that such subordination does not disturb the possession or other rights
of Tenant under this Lease so long as no Event of Default has occurred and is continuing. Tenant agrees to execute and deliver,
within ten (10) business days after written request from Landlord, such further instrument or instruments as may be required by
Landlord’s lender to subordinate this Lease to the lien of any such mortgage as shall be desired by Landlord, so long as
such subordination agreement conforms with the requirements of this section; provided,
however, that the ground lessor or the mortgagee or trustee named in said
mortgage or trust deed shall deliver to Tenant a subordination and non-disturbance agreement in form and substance reasonably agreeable
to both parties.

 

11.2           
Estoppel Certificates. Either party to this
Lease will, at any time from time to time, within ten (10) business days after written request from the other party, execute, acknowledge
and deliver to the requesting party a statement in writing certifying that this Lease is unmodified (or, if modified then disclosure
of such modification shall be made) and in full force and effect on the date to which the rents and other charges have been paid,
and stating whether or not said party has knowledge of any default hereunder on the part of the other party in the performance
of any covenant, agreement or condition contained herein, and if so, specifying each such default in reasonable detail, it being
intended that any such statement delivered pursuant to this Section may be relied upon by any prospective purchaser, mortgagee
or holder of a deed of trust of the Property or any portion thereof, or any assignee of any such party.

 

11.3           
Quiet Enjoyment. If and so long as Tenant
shall timely pay Base Rent and all additional rent required by this Lease (including, without limitation, Operating Expenses) and
shall perform and observe all the covenants and conditions contained in this Lease, Tenant’s possession of the Property will
not be disturbed by Landlord, or anyone claiming by, through or under Landlord, or any mortgagee thereof.

 

    	12

    	 

    

 

Article
12. 

CONDEMNATION OR EMINENT DOMAIN

 

12.1           
Total Condemnation. If all of the Premises shall be taken (“Total Taking”)
for any public or quasi-public use under any statute, or by right of eminent domain, or by way of purchase in lieu of eminent
domain, this Lease shall automatically terminate upon the date possession is surrendered and Base Rent and Operating Expenses
shall be prorated to the date of termination.

 

12.2           
Partial Condemnation. If a part of the Premises shall be so taken (“Partial
Taking”) so that Tenant, in its reasonable discretion, determines that the Premises are no longer fit for its use, Tenant
may terminate the Lease upon thirty (30) days’ written notice to Landlord, so long as such notice is received within one
hundred eighty (180) days after the date of the Partial Taking.

 

12.3           
Base Rent Adjustment. In the event of a Partial Taking which results in the size of
the Premises being reduced, the annual Base Rent payable by Tenant hereunder shall, from and after the date on which the condemning
authority takes possession, be reduced in the same proportion as the rentable square foot area of that portion of the Premises
so taken bears to the total rentable square foot area of the Premises on the Effective Date.

 

12.4           
Temporary Taking. If the Premises shall be so taken for temporary use or occupancy
(a “Temporary Taking”), the foregoing provisions of this Article shall not apply, and Tenant shall continue
to pay the full amounts of the Base Rent and Operating Expenses due hereunder. Only to the extent that Tenant may be prevented
from so doing pursuant to the terms of the order of the condemning authority, Tenant shall perform and observe all of the other
terms, covenants, conditions and obligations of this Lease as though the Temporary Taking had not occurred. In the event of a
Temporary Taking, Tenant shall be entitled to receive the entire amount of the condemnation award made for such taking (the “Temporary
Taking Award”), whether paid by the way of damages, rent or otherwise, unless the period of temporary use of occupancy
shall extend beyond the Expiration Date, in which case the Temporary Taking Award shall be apportioned between Landlord and Tenant
as of the Expiration Date. Upon the expiration of the term of any Temporary Taking, Landlord shall, at its sole cost and expense,
restore the Premises, as nearly as possible, to the condition in which they existed prior to the Temporary Taking.

 

12.5           
Prosecution of Condemnation Claim. Landlord shall be entitled to prosecute any action
or proceeding relating to any taking and, except as specifically provided in Section 12.4, shall be entitled to all awards, damages,
consequential damages and compensation for such taking, and Tenant shall not be entitled to share in any such award or have any
claim against Landlord for any part of such award; provided, however, that Tenant may make a separate claim against the condemning
authority for its trade fixtures, personal property, moving expenses and consequential damages.

 

    	13

    	 

    

 

Article
13. 

RIGHT TO INSPECT

 

13.1           
Landlord’s Access. The Landlord reserves the right to enter upon the Premises
and inspect and examine the Property during business hours, provided that Landlord has given Tenant forty-eight (48) hours written
notice of Landlord’s intent to do so. Notwithstanding the foregoing, however, such advance written notice shall not be required
in the event of an emergency requiring access to the Premises.

 

13.2           
“For Rent” Signage and Premises Access. Within one hundred eighty (180)
days prior to the Expiration Date, Tenant agrees to allow Landlord reasonable access to the Premises to show the premises, and
to place “for rent” signs on the Premises.

 

Article
14. 

DESTRUCTION OF THE PREMISES

 

14.1           
Complete Casualty. In the event the Premises shall be destroyed or so damaged by fire,
explosion, windstorm or other casualty as to be entirely untenantable, Landlord may either:

 

(a)                
terminate this Lease by providing written notice to Tenant within ninety (90) days of such
damage or destruction; or

 

(b)                
notify Tenant of Landlord’s intent to restore the Premises within a reasonable period
of time, at Landlord’s sole cost and expense, by providing written notice of such intent within ninety (90) days of such
damage or destruction; provided, however, that (i) Landlord shall not be obligated to expend for such restoration
an amount in excess of the insurance proceeds actually received by Landlord as a result of such damage or destruction, and (ii)
Tenant shall be solely responsible for the repair and replacement of any of Tenant’s furnishings, fixtures or equipment,
as well as all items of Tenant’s personal property. Landlord shall provide Tenant with an estimate of the time that will
be needed to repair the Premises.

 

14.2           
Tenant’s Right to Terminate. In the event that the Premises cannot be repaired
within one hundred eighty (180) days after the date of the damage or destruction, or with an amount that is equal to or less than
the amount of the insurance proceeds actually received by Landlord as a result of such damage or destruction, then Tenant shall
have the right to terminate this Lease by providing Landlord written notice of its intent to terminate within sixty (60) days
following Tenant’s receipt of written notice pursuant to Section 14.1(b). In the event that the Premises is not actually
repaired within one hundred eighty (180) days after the date of the damage or destruction, Tenant shall also have the right to
terminate this Lease by providing Landlord written notice of its intent to terminate within sixty (60) days after the one hundred
eightieth (180th) day following the date of the damage or destruction.

 

14.3           
Partial Casualty. If the Premises shall be damaged but not unfit for occupancy, then
the Landlord shall repair and restore the same with reasonable promptness to as near as practicable its preexisting condition.

 

    	14

    	 

    

 

14.4           
Rent Abatement. During any period of time that the Premises, or any portion thereof,
is not useable by Tenant as a result of a complete casualty described in Section 14.1, or a partial casualty as described
in Section 14.3, Base Rent shall be abated on a pro rata basis.

 

Article
15. 

TENANT’S DEFAULT

 

15.1           
Tenant’s Default. The following shall be considered “Events of Default”
by the Tenant under this Lease:

 

(a)                
Failure to pay Base Rent or Operating Expenses after the date that such Base Rent or Operating
Expenses are due, which failure continues for a period of five (5) days after Tenant receives written notice of such failure from
Landlord;

 

(b)                
Failure to pay any other amount due under this Lease within thirty (30) days after Tenant
receives written notice of such failure from Landlord;

 

(c)                
Failure to do, observe, keep and perform any of the terms, covenants, conditions, agreements
and/or provisions of this Lease where such failure continues for thirty (30) days after written notice of such failure by Landlord
to Tenant, except that this thirty (30) day period shall be extended for a reasonable period of time if the alleged default is
not reasonably capable of cure within said thirty (30) day period and Tenant proceeds to diligently cure the default;

 

(d)                
The adjudication of the Tenant as bankrupt or the appointment of a permanent receiver or trustee
in bankruptcy for the Tenant’s property, or the appointment of a temporary receiver which is not vacated or set aside within
ninety (90) days from the date of such appointment.

 

15.2           
Landlord’s Remedies. In the event of any such uncured Events of Default by Tenant,
after notice, if so required, and at any time thereafter, Landlord may, at its option, exercise of any other right or remedy it
may have on account of such default, and without any further demand notice:

 

(a)                
Landlord, without any obligation to do so, may elect to cure the Event of Default on behalf
of Tenant, in which event Tenant shall reimburse Landlord upon demand for any reasonable sums paid or costs incurred by Landlord
(together with an administrative fee of ten percent (10.0%) thereof) in curing the Event of Default, plus interest at the Interest
Rate, from the respective dates of Landlord’s incurring such costs until they are repaid by Tenant, which sums and costs
together with interest at the Interest Rate shall be deemed additional rent;

 

(b)                
Subject to Landlord’s compliance with all applicable Laws, to enter the Premises and
repossess the Property, by breaking open locked doors if necessary, and remove all persons and all or any property, by action at
law or otherwise, without being liable for prosecution or damages. Landlord may, at Landlord’s option, make alterations and
repairs in order to relet the Property and relet all or any part(s) of the Property for Tenant’s account. Tenant agrees to
pay to Landlord on demand any deficiency (taking into account all costs incurred by Landlord, except any costs and expenses that
Tenant reasonably establishes could have been avoided) that may arise by reason of such reletting, provided that Landlord uses
commercially reasonable efforts to mitigate its damages. In the event of reletting without termination of this Lease, Landlord
may at any time thereafter elect to terminate this Lease for such previous breach.

 

    	15

    	 

    

 

(c)                
To accelerate the whole or any part of the Base Rent for the balance of the Term, and declare
the same to be immediately due and payable, subject to reduction by rent and additional rent received by a replacement tenant the
during the period of the Term and provided that Landlord uses commercially reasonable efforts to mitigate its damages. 

 

(d)           To terminate
this Lease and the Term without any right on the part of Tenant to save the forfeiture by payment of any sum due or by other performance
of any condition, term or covenant broken.

 

Article
16. 

LANDLORD’S DEFAULT

 

16.1           
Landlord’s Default. Landlord shall be deemed to be in default under this Lease
if Landlord fails to comply with any condition of this Lease within thirty (30) days after Tenant provides written notice of such
failed condition to Landlord; provided, however, that Landlord shall have such longer period of time as may be reasonably necessary
to cure the default so long as Landlord proceeds promptly to commence the cure within the said thirty (30) days and then diligently
proceeds to cure.

 

16.2           
Tenant’s Remedies. In the event of an uncured default by Landlord, after notice,
if so required, Tenant may, at its option:

 

(a)                
Terminate this Lease by providing written notice to Landlord within sixty (60) days following
notice to Landlord of such default; or

 

(b)                
Exercise any other right or remedy available at law or in equity.

 

Article
17. 

INDEMNIFICATION

 

17.1           
Tenant agrees to indemnify, defend, and hold harmless Landlord from and against any and all
claims and out-of-pocket damages and expenses, including reasonable attorneys’ fees for the defense thereof (collectively,
“Losses”), arising from Tenant’s use or occupancy of the Property or from any default on the part of Tenant
under the terms of this Lease, or from any act or negligence of Tenant, its agents, contractors, servants, employees, subtenants,
concessionaires or licensees, or others for whose acts Tenant is responsible. Landlord shall not be liable, and Tenant waives all
claims, for damage to person or property sustained by Tenant or Tenant’s employees, agents, servants, invitees and customers
resulting from Tenant’s use or occupancy of the Property, or by reason of the Property or any appurtenances thereof becoming
out of repair, or resulting from any accident in or about the Premises or the Land or use of the Property, in all cases except
due to Landlord’s negligence or willful misconduct. All property belonging to Tenant or any occupant of the Premises shall
be there at the risk of Tenant or such other person only, and Landlord shall not be liable for damage thereto or theft or misappropriation
thereof, unless due to the negligence or willful misconduct of Landlord or its agents, contractors, servants, employees, subtenants,
concessionaires or licensees, or others for whose acts Landlord is responsible.

 

    	16

    	 

    

 

17.2           
Landlord agrees to indemnify, defend, and hold harmless Tenant from and against any and all
Losses arising from any default on the part of Landlord under the terms of this Lease, or from the negligence or willful misconduct
of Landlord, its agents, contractors, servants, employees, subtenants, concessionaires or licensees, or others for whose acts Landlord
is responsible. 

 

17.3           
In connection with any indemnification or defense obligation by
one party (the “Indemnifying Party”) to the other party (the “Indemnified Party”) under this
Lease that results from, or arises out of, any claim or legal proceeding by a person who is not a party to this Agreement (a “Third
Party Claim”), the Indemnified Party shall give the Indemnifying Party written notice as promptly as reasonably practicable
after it becomes aware of such Third Party Claim, which notice shall specify in reasonably sufficient detail (to the extent known)
the facts alleged to give rise to a claim and, if applicable, the amount the Indemnified Party is seeking from the Indemnifying
Party. The Indemnifying Party may, at its sole cost and expense and promptly and timely upon receiving written notice of the Third
Party Claim from the Indemnified Party, assume the defense of the Third Party Claim on behalf of the Indemnified Party; provided,
however, that the Indemnifying Party shall not settle any Third Party Claim
without the prior written consent of the Indemnified Party unless such settlement both: (a) contains no admission of wrongdoing,
culpability, or other liability of the Indemnified Party; and (b) contains a complete, total, and unconditional release of the
Indemnified Party with respect to the Third Party Claim. The Indemnified Party shall be entitled to participate in (but not control)
the defense of any Third Party Claim, with its counsel and at its own expense. If the Indemnifying Party does not assume the defense
of a Third Party Claim, the Indemnified Party may defend against the Third Party Claim in such manner as the Indemnified Party
may deem appropriate, including, but not limited to, settling such Third Party Claim on such terms as the Indemnifying Party may
deem appropriate after giving notice thereof to the Indemnifying Party, and the Indemnified Party shall be entitled to prompt indemnification
from the Indemnifying Party for all of the Losses incurred in connection with the Indemnified Party’s defense and resolution
of such Third-Party Claim. Failure or delay by the Indemnified Party to give prompt notice of any Third Party Claim shall not release,
waive or otherwise affect an Indemnifying Party’s obligations with respect to the Third Party Claim, except to the extent
that the Indemnifying Party can demonstrate actual loss or prejudice as a result of such failure or delay.

 

Article
18. 

NOTICES

 

18.1           
Form of Notice. Except as otherwise expressly provided in this Lease, any bills, statements,
notices, demands, requests, consents or other communications given or required to be given under this Lease shall be effective
only if given in writing signed by the party giving the same, or its attorney, and sent by (a) certified or registered U.S. mail,
postage prepaid, return receipt requested, (b) personal delivery, or (c) a nationally recognized overnight courier service, addressed
as follows:

 

    	17

    	 

    

 

If to Landlord:

 

Just Pick, LLC

401 N. Wickham
Road

Melbourne, FL
32835

Attention: Niraj Patel

 

With a copy
to (which shall 

not constitute
notice):

 

Nelson Mullins
Riley & Scarborough, LLP

390 N. Orange
Ave.

Suite 1400

Orlando, FL 32801

Attention: Matt
Armstrong

Phone: (407) 839-4200

 

If to Tenant:

 

Kaival Brands
Innovations Group, Inc.

401 N. Wickham
Road

Melbourne, FL
32835

Attention: KAVL-Corporate

 

with a copy to (which shall

not constitute notice):

 

Baker & Hostetler
LLP

200 S. Orange
Ave., Suite 2300

Orlando, FL 32801

Attention: Keith
Durkin

 

18.2            Timing
of Notice.  Any such bill, statement, notice, demand, request, consent or other communication shall be deemed to have
been rendered or given on the date which is: (a) three business (3) days after the date mailed; (b) one (1) business day
after deposit with a nationally recognized overnight courier service for overnight delivery; or (c) on the date of personal
delivery, as the case may be. Either party may change its address for delivery by giving notice to the other party as
provided in this Article 18.

 

    	18

    	 

    

 

Article
19. 

MISCELLANEOUS

 

19.1           
No Waiver. The receipt of Base Rent or additional rent by Landlord with knowledge
of any breach of this Lease by Tenant or of any default on the part of Tenant in the observance or performance of any of the conditions
or covenants of this Lease, shall not be deemed to be a waiver of any of the terms, covenants or conditions of this Lease. No
failure on the part of either the Landlord or the Tenant to enforce any term, covenant or condition of this Lease, nor any waiver
of any right by Landlord or Tenant shall discharge or invalidate such term, covenant or condition, or affect the right of Landlord
or Tenant to enforce the same in the event of any subsequent breach or default. Efforts by Landlord to mitigate the damages caused
by Tenant’s default shall not constitute a waiver of Landlord’s right to recover damages hereunder. No right or remedy
herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy provided herein or by law,
but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or
in equity. No payment by Tenant or receipt or acceptance by Landlord of a lesser amount than the total amount due Landlord under
this Lease shall be deemed to be other than on account, nor shall any endorsement or statement on any check or payment be deemed
an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover
the balance of Rent due, or Landlord’s right to pursue any other available remedy.

 

19.2           
Captions. The Article and Section headings in this Lease are inserted only as a matter
of convenience in reference and are not to be given any effect in construing any provision of this Lease. All references in this
Lease to Article and Section numbers shall be deemed to refer to Articles and Sections and of this Lease unless otherwise stated.

 

19.3           
Successors and Assigns. The covenants and agreements contained in this Lease shall
apply to, inure to the benefit of, and be binding upon Landlord and Tenant and upon their respective successors and permitted
assigns, except as otherwise stated to the contrary in this Lease.

 

19.4           
Amendments; Modifications. This Lease may not be changed, cancelled or discharged
orally, but only by an agreement in writing and signed by the party against whom enforcement of any waiver, change, modification
or discharge is sought. All understandings and agreements between Landlord and Tenant are merged in this Lease which represents
the entire agreement between the parties and which fully and completely sets forth all terms and conditions of the transactions
embodied in this Lease.

 

19.5           
Severability.If any term or provision of this Lease or any portion of a term or
provision of this Lease or the application of any such term or condition to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances
other than those as to which it is held invalid or unenforceable, shall not be affected, and each term and provision of this Lease
shall be valid and be enforced to the fullest extent permitted by law.

 

19.6           
Integration; Modification. This Lease, and any rider or Exhibit thereto, constitutes
the entire agreement among the parties, and contains all of the agreements among the parties with respect to the subject matter
hereof. This Lease supersedes any and all agreements, either oral or in writing, among the parties hereto with respect to the
subject hereof, all of which shall be of no further force or effect for any purpose and in connection with which Landlord and
Tenant shall have no further rights, obligations, liabilities, or responsibilities from and after the Effective Date, all of which
are hereby expressly waived and released by the parties. This Lease replaces any other lease between the parties with respect
to the Property and supersedes any prior terms or agreements of the parties with respect thereto. Furthermore, the amounts owed
under this Lease supersede and replace any prior amounts, fees or credits owed to or by any party hereto with respect to the Property,
except for all unpaid monthly rent of $1,000.00 per month for space within the Office Building that has been occupied by Tenant
prior to the Effective Date, which shall be paid in full by Tenant to Landlord within thirty (30) days after the Effective Date.

 

    	19

    	 

    

 

19.7           
Construction. The language in all parts of this Lease shall in all cases be construed
as a whole according to its fair meaning, and without implying a presumption that the terms in the Lease shall be more strictly
construed against one party by reason the rule of construction that a document is to be construed more strictly against the person
who himself or through his agent prepared the Lease, it being agreed that representatives of both parties have reviewed and participated
in the preparation of the Lease.

 

19.8           
Computation of Time. All periods of time referred to in this Lease shall include all
Saturdays, Sundays and state or federal holidays; provided, however, that if the date or last day to perform any act or give any
notice with respect to this Lease shall fall on a Saturday, Sunday, or state or federal holiday, such act or notice shall be timely
performed if given on the next succeeding day which is not a Saturday, Sunday, state or federal holiday. Time is of the essence
for all rights and obligations under this Lease.

 

19.9            No
Agency. The parties agree that the business relationship created under this Lease is solely that of Landlord and Tenant.
Nothing contained in the Lease shall constitute Tenant as an agent, legal representative, partner, subsidiary, joint venturer
or other business relationship between Landlord and Tenant. Tenant shall have no right or power to and shall not bind or
obligate Landlord in any way, manner or thing whatsoever, nor represent that it has the right to do so.

 

19.10        
Authority. The persons signing this Lease on behalf of Landlord and Tenant each represent
and warrant that they have the legal right and authority to sign the Lease on behalf of the party he is signing for, and that
no other signature or action is required in order to bind such party to the terms of this Lease.

 

19.11        
Brokers. Landlord and Tenant each represent and warrant to the other that it has not
engaged the services of any real estate broker or agent in any way connected with this transaction. Each party agrees to indemnify
and hold the other party harmless from Losses resulting from a commission or other fee due as a result of this transaction due
to the act(s) or omissions of one party. This provision shall survive expiration or termination of this Lease.

 

19.12        
Other Representations, Warranties, and Covenants
of Landlord. Landlord represents and warrants
to Tenant that: (a) the Premises are separately taxed and assessed with all utilities available and separately metered; (b) the
Premises are not subject to any cost-sharing, contribution or any other financial arrangement or agreement involving any other
property with respect to common area maintenance costs, insurance costs, taxes, utilities and/or any other costs or fees; and
(c) there are no declarations, covenants, conditions, and restrictions, or similar instruments that are recorded on the Effective
Date in the public records of any jurisdiction in which the Premises are located that would materially impair or affect Tenant’s
occupancy of the Premises or the Permitted Use at the Premise during the Term. 

 

    	20

    	 

    

 

19.13        
Counterparts. This Lease may be signed in any number of counterparts, each of which
when taken together shall be deemed to be a complete document.

 

19.14        
Governing Law. This Lease shall be governed by the internal laws of the State in of
Florida, without regard to principles of conflicts of law. Each of the parties hereby irrevocably and unconditionally submits,
for itself or himself and its or his property, to the exclusive jurisdiction of the state and federal courts in Brevard County,
Florida (the “Chosen Courts”), in any action or proceeding arising out of or relating to this Agreement or for recognition
or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding shall be heard and determined in any such Chosen Court. Each of the parties irrevocably
and unconditionally waives, to the fullest extent the party may legally and effectively do so, any objection (whether as a matter
of state or federal Law) that the party may now or hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement in any Chosen Court. Without limiting the foregoing, each Party agrees that service of process
on such Party as provided for notice in Section 18.1 shall be deemed effective service of process on such Party.

 

19.15        
Radon Gas. As required by Florida statute,
the following notification is provided: “RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated
in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that
exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing
may be obtained from your county health department.” 

 

[Remainder of page left intentionally
blank. Signature page follows.]

 

    	21

    	 

    

 

IN WITNESS WHEREOF,
the Landlord and Tenant have respectively signed this Lease as of the Effective Date.

 

	 	 	LANDLORD:
	 	 	 
	Date Signed: June 10, 2022	 	JUST PICK, LLC, a
    Florida limited liability
	 	 	company
	Attest/Witness:	 	 
	 	 	 
	 	 	By: /s/
    Nirajkumar Patel
	 	[signature]	 
	 	 	Print Name: Nirajkumar Patel,
    Manager
	Print Name:_____________________	 	 
	 	 	 
	 	[signature]	 
	Print Name:________________________	 	 
	 	 	 
	 		TENANT:
	 	 	 
	Date Signed: June 10, 2022	 	KAIVAL	BRANDS	INNOVATIONS
	 	 	GROUP, INC., a Delaware
    corporation
	Attest/Witness:	 	 
	 	 	 
	 	 	By: /s/
    Eric Mosser
	 	[signature]	 
	 	 	Print Name:
    Eric Mosser
	Print Name:_____________________	 	 
	 	 	Its: Chief Operating Officer
	 	 	 
	 	[signature]	 
	Print Name:________________________	 	 

 

[Remainder of Page Intentionally Blank. Exhibit
A Follows.]

 

SIGNATURE PAGE TO LEASE

 

    	 

    	 

    

 

EXHIBIT A

 

Legal
Description of THE LAND

 

 

 

[Remainder of Page Intentionally Blank. Exhibit
B Follows.]

 

EXHIBITS
TO LEASE

 

    	 

    	 

    

 

EXHIBIT
B

 

PREMESIS
LAYOUT

 

 

[Remainder of Page Intentionally Blank. Exhibit
C Follows.]

 

EXHIBITS
TO LEASE

 

    	 

    	 

    

 

EXHIBIT C

 

Personal
Property

 

[To be
provided.]

 

[End of Lease.]

 

EXHIBITS
TO LEASE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}]]