Document:

Exhibit 10.1

 

 

 

May 20, 2020

 

Valued Shareholders,

 

The quarter ended March 31, 2020 was our highest-volume quarter
to date. We sold more pints of ice cream than any other quarter in our history...Gross Sales were over $280,000. Nightfood
is now available in almost four times as many supermarkets as it was at this time last year. Most importantly, consumers bought
more pints this past quarter than ever before.

 

We’re readying to launch into our next two supermarket chains,
adding supermarket coverage in additional major metropolitan areas, and have set our sights on the New York market through a broker
relationship with Omni Food Sales

 

In this letter, I’ll discuss potential impacts from COVID-19,
changes to how net revenues are calculated, and our vision for the near-term future and beyond.

 

COVID-19

 

As our country begins to reopen, we hope that most of the fear and
uncertainty brought about by the Coronavirus is behind us. Ahead, there is again optimism and hope. We hope that more people will
be going back to work, kids will be going back to school after the summer, and our lives will more and more return to normal. Or,
as it is now being described, “a new normal”.

 

There are certainly some new variables. Supermarket sales volume
is up sharply, while supermarket foot traffic is down. Newer brands have seen their share of growth decrease, as the incumbents
have grown faster than challenger brands during this surge. Ice cream is one of the categories that has seen the most significant
dollar volume increase according to IRI industry sales reports, while the economy generally has been generally weakened.

 

As a new brand, it is unknown how much these macro trends will impact
us positively or negatively in the immediate term, or which will have the bigger impact. Zooming out a bit, we know that people
are spending more time at home, and snacking is up. And the biological and psychological factors that drive nighttime cravings,
the engine of our business, have strengthened.

 

Our present and immediate future revolves around the growth of Nightfood
ice cream, sold primarily in-store and through delivery by major supermarkets, for people to eat at home while relaxing in the
evening...that does not seem to be immediately threatened by any fallout from the virus.

 

Nightfood Operations and Rollout

 

We have confirmed no expected interruption with the manufacturing
of our product or packaging in this anticipated “new normal”.

 

Certain supermarket chains that began stocking Nightfood in March
had to temporarily pause the rollout because of current events. Those stores have now completed their rollouts.

 

The outbreak did delay the introduction of Nightfood into our two
newest supermarket chains, Albertsons Divisions Jewel-Osco and Shaw’s and Star Market. As of the time of this filing, we
have been notified that Nightfood has now been introduced in all 343 of those stores. Initial timing called for introduction in
all locations in late March and early April. While a significant portion of the introductions occurred on time, management estimates
25-50% of the locations were delayed by several weeks.

 

The Company also pushed back by 8 weeks a major in-store marketing
initiative in partnership with News America Corp. It was announced in February that Nightfood coupon machines would be installed
in approximately 700 major supermarket locations. That initiative was originally scheduled to begin in mid March. In fact, Nightfood
coupon machines were installed in a number of supermarkets in mid-March before News America informed Management that the rollout
would have to be delayed. At the time of this filing, the installation of coupon machines had begun again (on May 16, 2020).

 

New chains that earlier in the year had expressed interest and/or
commitment to adding our products have begun moving forward. Orders have been placed, and product has been shipped.

 

We’ve confirmed with several of the major chains on our target
list that they will be conducting upcoming reviews on or close to schedule. Of course, those meetings may involve zoom calls and
samples sent by FedEx rather than face-to-face meetings.

 

We have experienced no issues with supply chain or logistics. Order
processing function has been perfectly normal to date, and our manufacturers have assured us that their operations are “business
as usual” as of the time of this filing.

 

We had previously been working on initiatives relating to distribution
and partnerships in the hotel and hospitality vertical. With COVID-19 and its impact on the travel habits of consumers, these initiatives
and certain related investments have been put on hold at this time.

 

Slotting Fees

 

Going forward, revenues will be reported on our income statements
as net of Slotting Fees. As many of you know, slotting fees are fees paid to supermarkets and distributors when new items are introduced
on their shelves or in their warehouse (a slot).

 

We had previously been reporting Gross Sales on our income statement,
and amortizing slotting fees as an expense against those sales. On our most current and future filings, the top-line number on
the income statement will be the Net Revenue number, and the slotting fees we had previously shown as an expense will not appear
on the income statement (as they’ll have already been accounted for in the reduction of Gross Sales to Net Revenue).

 

To illustrate, if a company had $1,000,000 in Gross Sales and $220,000
in slotting expenses, you would not see either the $1,000,000 in sales or the $220,000 in slotting expenses on the income statement.
Rather, their reported “top-line” would show as $780,000. To some, this may seem counter-intuitive and may not seem
like the most complete and accurate reflection of what is happening in the business, but this is the way the formal guidance indicates
these situations are to be accounted for.

 

Because of this, we have made some adjusting entries in our quarterly
filings, and all future financial statements will contain a section that breaks out the Gross Sales numbers, and then shows the
reduction in revenue related to slotting fees that bring us to “Net Revenue”. This will allow interested parties to
see the Gross Sales number along with the Net Revenue number for each quarter.

 

It is normal and customary in the consumer goods industry to pay
slotting fees as distribution expands. In some cases, slotting fees, also called “new item placement fees” or “new
item placement allowances” can be nominal. In other situations, slotting fees for certain retail and distribution partners
could run hundreds of thousands of dollars. Those investments have the potential to provide tremendous value to a Company over
time as they open the door to the possibility of much greater revenues for a growing brand.

 

Slotting fees are not an auction for shelf (or freezer) space. One
brand does not outbid others to get on shelf. Different retailers have established different standard slotting, and that is simply
the cost of doing business with those specific partners.

 

Many retailers do not charge slotting fees, but most of the larger
ones do. The Management of an emerging brand could choose not to do business with retailers or distributors who charge slotting
fees. Such a strategy, while possible, would greatly limit the distribution footprint a brand could establish. Investors should
have the expectation that slotting fees will continue to be a significant factor over the next one to three fiscal years as Nightfood
continues to progress towards its goal of national distribution.

 

Looking Forward

 

Every day, new consumers are discovering Nightfood for the first
time. The reviews are strong, and unit volume for the quarter ending March 31 was undeniably our best ever. We were on track for
a record quarter even before the rapid virus-related changes (and corresponding buying surges) hit in early March.

 

While velocities have slowed since that time, with the virus likely
playing a role, activity is starting to pick up again. We’re starting to see support, consumption, and peer-to-peer referral
activity from within the pregnancy community. This is something that I expect to gain significant additional momentum through the
coming months, and will help develop the kind of velocity that can allow us to rapidly expand distribution.

 

While being ever aware of the changing economy around us, my focus
remains on the growth of our company and our brand. In the short term, that means more consumers buying more pints through more
outlets. And that means Nightfood helping more people address their cravings in a better, healthier, more sleep-friendly way.

 

As we begin to discover what our new normal looks like, snacking
may remain elevated, or it may revert to pre-virus levels...supermarket foot traffic may return to the normal, or more consumers
may continue ordering via delivery or online...there may or may not be a new baby boom from the quarantine...

 

While those things are difficult to predict, there is one thing
we can feel certain about: Nighttime cravings will remain because humans are biologically programmed to crave junk when it gets
late.

 

Over 80% of Americans snack regularly at night.  Every week,
over 700 million nighttime snacks are consumed and over $1B is spent.  The most popular choices are known to be both unhealthy
and disruptive to sleep quality:  ice cream, chips, cookies, and candy top the list. 

 

We believe this outdated human survival mechanism presents a multi-billion
dollar opportunity.

 

Sincerely,

 

Sean Folkson

Founder and Chief Executive Officer

NightFood Holdings, Inc.

 

This letter may contain forward-looking statements, which
are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “will,”
“may,” ‘‘expects,’’ ‘‘anticipates,’’ ‘‘approximates,’’
‘‘believes,’’ ‘‘estimates,’’ ‘‘intends’’ and ‘‘hopes’’
and variations of such words and similar expressions are intended to identify such forward-looking statements. We have based these
statements on our current expectations and projections about future events. These forward-looking statements are not guarantees
of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those
projected in these statements. Such forward-looking statements involve risk and uncertainties, including, but not limited to, the
acceptance of our products by retailers and end-users, commercialization risks, availability of financing and results of financing
efforts, and general economic conditions. Further information regarding these and other risks, as well as other information about
the Company, is described from time to time in the Company’s filings with the SEC, which can be accessed at www.sec.gov.

This letter should be read in conjunction with the Company’s
annual, quarterly and other reports and schedules filed with the Securities and Exchange Commission from time to time, including
the Company’s most recent Annual Report on Form 10-K for the fiscal year ended June 30, 2019.Document

Exhibit 4.1

DESCRIPTION OF CAPITAL STOCK
The following description of the common shares of Hawkins, Inc. (the “Company”) does not purport to be complete and is subject to and qualified by reference to the Company’s Amended and Restated Articles of Incorporation (the “Articles”) and Amended and Restated By‐Laws (the “Bylaws”) and applicable law.
Authorized Capital
The Company is authorized to issue up to 30,000,000 shares, with a par value of $.05 per share (the “common shares”). The common shares may be allotted as and when the Company’s Board of Directors (the “Board”) shall determine, and, under and pursuant to the laws of the State of Minnesota, the Board has the power to fix or alter, from time to time, in respect to shares then unallotted, any or all of the following: the dividend rate; the redemption price; the liquidation price; the conversion rights and the sinking or purchase fund rights of shares of any class, or of any series of any class.
Voting Rights
Each common share entitles the holder to one vote for all purposes and cumulative voting is not permitted in the election of directors. Significant corporate transactions, such as amendments to the Articles, mergers, sales of assets and dissolution or liquidation, require approval by the affirmative vote of the majority of the outstanding common shares. Other matters to be voted upon by the holders of common shares normally require the affirmative vote of a majority of the shares present at the particular shareholders meeting.
Dividends and Other Distributions
Holders of the common shares are entitled to receive dividends in the form of cash, property or shares of capital stock of the Company, when and as declared by the Board, provided there are sufficient earnings or surplus legally available for that purpose. All of the issued and outstanding common shares are nonassessable.
No Preemptive Rights
There are no preemptive, subscription, conversion, redemption or sinking fund rights pertaining to the common shares. The absence of preemptive rights could result in a dilution of the interest of investors should additional common shares be issued.
Liquidation Rights
Common shares are entitled to share ratably in all of the Company’s assets available for distribution upon liquidation, dissolution or winding up of the affairs of the Company.
Anti-Takeover Provisions
Certain provisions of Minnesota law described below could have anti-takeover effects. These provisions are intended to provide management flexibility and to enhance the likelihood of continuity and stability in the composition of the Board and in the policies formulated by the Board and to discourage an unsolicited takeover of the Company, if the Board determines that such a takeover is not in the best interests of the Company and its shareholders. However, these provisions could have the effect of discouraging certain attempts to acquire the Company that could deprive shareholders of opportunities to sell their common shares at prices higher than prevailing market prices.
Section 302A.671 of the Minnesota Business Corporation Act applies, with certain exceptions, to any acquisition of the Company’s voting stock (from a person other than the Company and other than in connection with certain mergers and exchanges to which the Company is a party) resulting in the acquiring person owning 20% or more of its voting stock then outstanding. Section 302A.671 requires approval of any such acquisitions by a majority vote of the Company’s shareholders prior to consummation. In general, shares acquired in the absence of such approval are denied voting rights and are redeemable at their then fair market value by the Company within thirty days after the acquiring person has failed to give a timely information statement to the Company or the date the shareholders voted not to grant voting rights to the acquiring person’s shares.

Section 302A.673 of the Minnesota Business Corporation Act generally prohibits the Company or any of its subsidiaries from entering into any transaction with a shareholder under which the shareholder purchases 10% or more of the Company’s voting shares (an “interested shareholder”) within four years following the date the person became an interested shareholder, unless the transaction is approved by a committee of all of the disinterested members of the Board serving before the interested shareholder acquires the shares.
In addition to the various Minnesota statutory provisions described above, certain provisions in the Articles and Bylaws could have an anti-takeover effect. The Articles provide that the holders of the common shares do not have cumulative voting rights. For the shareholders to call a special meeting, the Bylaws require that at least 10% of the voting power of the shareholders must join in the request and at least 25% of the voting power of the shareholders must join in the request for a special meeting in the case of a special meeting called for the purpose of considering any action to directly or indirectly effect a business combination, including any action to change or otherwise affect the composition of the Board for that purpose. Furthermore, the Board has the power to issue any or all of the shares of undesignated common shares, including the authority to establish one or more series and to fix the powers, preferences, rights and limitations of such class or series, without seeking shareholder approval, and the right to fill vacancies of the Board (including a vacancy created by an increase in the Board).
The Company’s Bylaws include an advance notice procedure for shareholder proposals to be brought before an annual meeting of shareholders, including proposed nominations of candidates for election to the Board. Shareholders at an annual meeting will only be able to consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the Board, or by a shareholder that has delivered timely written notice in proper form to the Company’s secretary of the business to be brought before the meeting. These provisions could have the effect of delaying shareholder actions that may be favored by the holders of a majority of the Company’s outstanding voting securities until the next shareholder meeting, or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempt to obtain control of the Company.

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