Document:

Exhibit 4.7

 

WARRANT

 

THE SECURITIES REPRESENTED BY THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE
BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF
COUNSEL IN GENERALLY ACCEPTABLE FORM THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS
SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

KONA GOLD BEVERAGE, INC.

 

Warrant To Purchase Common Stock

 

	Warrant No.: KGKG 4-1	Number of Shares:	100,000,000
	 	Warrant Exercise Price:	$0.03
	 	Expiration Date:	August 20, 2024

 

Date of Issuance: August 20, 2021

 

Kona Gold Beverage, Inc., a Delaware corporation
(the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, YAII, PN, Ltd. (the “Holder”), the registered holder hereof or its permitted
assigns, is entitled, subject to the terms set forth below, to purchase from the Company upon surrender of this Warrant, at any
time or times on or after the date hereof, but not after 5:00 P.M. Eastern Time on the Expiration Date (as defined herein) up to
100,000,000 fully paid and nonassessable shares of Common Stock (as defined herein) of the Company (the “Warrant Shares”)
at the exercise price per share provided in Section 1(b) below or as subsequently adjusted; provided, however,
that in no event shall the holder be entitled to exercise this Warrant for a number of Warrant Shares in excess of that number
of Warrant Shares that, upon giving effect to such exercise, would cause the aggregate number of shares of Common Stock beneficially
owned by the Holder and its affiliates to exceed 4.99% of the outstanding shares of the Common Stock following such exercise, except
within 60 days of the Expiration Date (however, such restriction may be waived by Holder (but only as to itself and not to any
other holder) upon not less than 65 days’ prior written notice to the Company). For purposes of the foregoing proviso, the
aggregate number of shares of Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares
of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such proviso is being made, but
shall exclude shares of Common Stock that would be issuable upon (i) exercise of the remaining, unexercised Warrants beneficially
owned by the Holder and its affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other
securities of the Company beneficially owned by the Holder and its affiliates (including, without limitation, any convertible notes
or preferred stock) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set
forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended. For purposes of this Warrant, in determining the number of outstanding
shares of Common Stock a holder may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s
then-most recent Form 10-Q or Form 10-K, as the case may be, (2) a more recent public announcement by the Company, or (3) any other
notice by the Company or its transfer agent setting forth the number of shares of Common Stock then outstanding. Upon the written
request of any holder, the Company shall promptly, but in no event later than one Business Day following the receipt of such notice,
confirm in writing to any such holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the exercise of Warrants (as defined below) by such holder and
its affiliates since the date as of which such number of outstanding shares of Common Stock was reported.

 

    	 

    	 

    

 

Section 1.

 

(a)    
This Warrant is issued pursuant to the Securities Purchase Agreement (“Securities
Purchase Agreement”) dated the date hereof between the Company and the Holder or issued in exchange or substitution thereafter
or replacement thereof. Each capitalized term used, and not otherwise defined herein, shall have the meaning ascribed thereto in
the Securities Purchase Agreement.

 

(b)    
Definitions. The following words and terms as used in this Warrant shall have the following
meanings:

 

(i)                  
“Business Day” means any day other than Saturday, Sunday, or other day
on which commercial banks in the City of New York are authorized or required by law to remain closed.

 

(ii)                
“Closing Bid Price” means the closing bid price (or closing trade if there
is no closing bid price) of Common Stock as quoted on the Principal Market (as reported by Bloomberg, LP (“Bloomberg”)
through its “Volume at Price” function).

 

(iii)               
“Common Stock” means (i) the Company’s common stock, par value
$0.00001 per share, and (ii) any capital stock into which such Common Stock shall have been changed or any capital stock resulting
from a reclassification of such Common Stock.

 

(iv)              
“Event of Default” means an event of default under the Securities Purchase
Agreement or the Convertible Debenture issued in connection therewith.

 

(v)                
“Expiration Date” means the date set forth on the first page of this Warrant.

 

(vi)              
“February Securities Purchase Agreement” means that Certain Securities
Purchase Agreement between the Company and the Holder, dated February 11, 2021.

 

(vii)             
“Issuance Date” means the date hereof.

 

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(viii)           
“May Securities Purchase Agreement” means that Certain Securities Purchase
Agreement between the Company and the Holder, dated May 14, 2020.

 

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

 

(x)                
“Person” means an individual, a limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization, and a government or any department or agency thereof.

 

(xi)              
“Primary Market” means the OTC Market Group Inc.’s OTCQB®
Venture Market.

 

(xii)             
“Securities Act” means the Securities Act of 1933, as amended. 

 

(xiii)           
“Warrant” means this Warrant and all Warrants issued in exchange, transfer,
or replacement thereof. 

 

(xiv)           
“Warrant Exercise Price” shall be $0.03 per share or as subsequently adjusted
as provided in Section 8 hereof. 

 

(c)    
Other Definitional Provisions. 

 

(i)                  
Except as otherwise specified herein, all references herein (A) to the Company shall
be deemed to include the Company’s successors and (B) to any applicable law defined or referred to herein shall be deemed
references to such applicable law as the same may have been or may be amended or supplemented from time to time. 

 

(ii)                
When used in this Warrant, the words “herein”, “hereof”,
and “hereunder” and words of similar import shall refer to this Warrant as a whole and not to any provision
of this Warrant, and the words “Section”, “Schedule”, and “Exhibit” shall
refer to Sections of, and Schedules and Exhibits to, this Warrant, unless otherwise specified. 

 

(iii)               
Whenever the context so requires, the neuter gender includes the masculine or feminine, and
the singular number includes the plural, and vice versa. 

 

Section 2.      Exercise
of Warrant.

 

(a)    
Subject to the terms and conditions hereof, this Warrant may be exercised by the holder hereof
then registered on the books of the Company, pro rata as hereinafter provided, at any time on any Business Day on or after the
opening of business on such Business Day, commencing with the first day after the date hereof, and prior to 5:00 P.M. Eastern Time
on the Expiration Date (i) by delivery of a written notice, in the form of the subscription notice attached as Exhibit A
hereto (the “Exercise Notice”), of such holder’s election to exercise this Warrant, which notice shall
specify the number of Warrant Shares to be purchased, payment to the Company of an amount equal to the Warrant Exercise Price(s)
applicable to the Warrant Shares being purchased, multiplied by the number of Warrant Shares (at the applicable Warrant Exercise
Price) as to which this Warrant is being exercised (plus any applicable issue or transfer taxes) (the “Aggregate
Exercise Price”) in cash or wire transfer of immediately available funds and the surrender of this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or destruction) to a common carrier for overnight delivery
to the Company or (ii) if at the time of exercise, the Warrant Shares are not subject to an effective registration statement or,
if an Event of Default has occurred and is continuing, by delivering an Exercise Notice and in lieu of making payment of the Aggregate
Exercise Price in cash or wire transfer, elect instead to receive upon such exercise the “Net Number” of shares of
Common Stock determined according to the following formula (the “Cashless Exercise”): 

 

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	Net
    Number = 	(A
    x B)   (A x C)	 
		B	 

 

For purposes of the foregoing formula:

 

A = the total number of Warrant Shares
with respect to which this Warrant is then being exercised.

 

B = the Closing Bid Price of the Common
Stock on the date of exercise of the Warrant.

 

C = the Warrant Exercise Price then
in effect for the applicable Warrant Shares at the time of such exercise.

 

In the event of any exercise
of the rights represented by this Warrant in compliance with this Section 2, the Company shall on or before the 3rd
Business Day following the date of receipt of the Exercise Notice, the Aggregate Exercise Price and this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or destruction) and the receipt of the representations
of the holder specified in Section 6 hereof, if requested by the Company (the “Exercise Delivery Documents”),
and if the Warrant Shares are subject to an effective and current Registration Statement and the Common Stock is DTC eligible,
credit such aggregate number of shares of Common Stock to which the holder shall be entitled to the holder’s or its designee’s
balance account with The Depository Trust Company; provided, however, if the holder who submitted the Exercise Notice
requested physical delivery of any or all of the Warrant Shares, or, if the Warrant Shares are not subject to an effective and
current Registration Statement and the Common Stock is not DTC eligible, then the Company shall, on or before the 3rd
Business Day following receipt of the Exercise Delivery Documents, issue and surrender to a common carrier for overnight delivery
to the address specified in the Exercise Notice, a certificate, registered in the name of the holder, for the number of shares
of Common Stock to which the holder shall be entitled pursuant to such request. The Warrant Shares shall be issued with a legend
unless they are subject to an effective and current Registration Statement or they are being transferred pursuant to an exemption
from such registration requirements, the availability of which is confirmed in an opinion of counsel acceptable to the Company’s
transfer agent. Upon delivery of the Exercise Notice and Aggregate Exercise Price referred to in clause (i) or (ii), above,
the holder of this Warrant shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised. In the case of a dispute as to the determination of the Warrant Exercise
Price, the Closing Bid Price, or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the holder
the number of Warrant Shares that is not disputed and shall submit the disputed determinations or arithmetic calculations to the
holder via facsimile within 1 Business Day of receipt of the holder’s Exercise Notice.

 

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(b)    
If the holder and the Company are unable to agree upon the determination of the Warrant Exercise
Price or arithmetic calculation of the Warrant Shares within one day of such disputed determination or arithmetic calculation being
submitted to the holder, then the Company shall immediately submit via e-mail (i) the disputed determination of the Warrant Exercise
Price or the Closing Bid Price to an independent, reputable investment banking firm or (ii) the disputed arithmetic calculation
of the Warrant Shares to its independent, outside accountant. The Company shall cause the investment banking firm or the accountant,
as the case may be, to perform the determinations or calculations and notify the Company and the holder of the results no later
than 72 hours from the time it receives the disputed determinations or calculations. Such investment banking firm’s or accountant’s
determination or calculation, as the case may be, shall be deemed conclusive absent manifest error.

 

(c)    
Unless the rights represented by this Warrant shall have expired or shall have been fully
exercised, the Company shall, as soon as practicable and in no event later than five Business Days after any exercise and at its
own expense, issue a new Warrant identical in all respects to this Warrant exercised, except it shall represent rights to purchase
the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant exercised, less the number of Warrant
Shares with respect to which such Warrant is exercised.

 

(d)    
No fractional Warrant Shares are to be issued upon any pro rata exercise of this Warrant,
but rather the number of Warrant Shares issued upon such exercise of this Warrant shall be rounded up or down to the nearest whole
number.

 

(e)    
If the Company or its Transfer Agent shall fail for any reason or for no reason to issue to
the holder within five days of receipt of the Exercise Delivery Documents, a certificate for the number of Warrant Shares to which
the holder is entitled or to credit the holder’s balance account with The Depository Trust Company for such number of Warrant
Shares to which the holder is entitled upon the holder’s exercise of this Warrant, unless such failure results from a failure
of the Company’s Transfer Agent to issue such shares as a result of an act of terrorism, war, natural disaster, act of God,
or other force majeure event, the Company shall, in addition to any other remedies under this Warrant or otherwise available to
such holder, pay as additional damages in cash to such holder on each day the issuance of such certificate for Warrant Shares is
not timely effected an amount equal to 0.025% of the product of (A) the sum of the number of Warrant Shares not issued to the holder
on a timely basis and to which the holder is entitled and (B) the Closing Bid Price of the Common Stock for the trading day immediately
preceding the last possible date which the Company could have issued such Common Stock to the holder without violating this Section 2.

 

(f)     
If within five days after the Company’s receipt of the Exercise Delivery Documents and
the written request of the Holder that a new Warrant be issued, the Company fails to deliver a new Warrant to the holder for the
number of Warrant Shares to which such holder is entitled pursuant to Section 2 hereof, then, in addition to any other available
remedies under this Warrant, or otherwise available to such holder, the holder shall be entitled to exercise or transfer its rights
under such new Warrant as if it had received such new Warrant and the Company shall be obligated to honor such exercises or transfers
as if the holder had submitted the new Warrant without violating this Section 2.

 

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Section 3.      Covenants
as to Common Stock. The Company hereby covenants and agrees as follows:

 

(a)    
This Warrant is, and any Warrants issued in substitution for or replacement of this Warrant
will, upon issuance be, duly authorized and validly issued.

 

(b)    
All Warrant Shares that may be issued upon the exercise of the rights represented by this
Warrant will, upon issuance, be validly issued, fully paid, and nonassessable and free from all taxes, liens, and charges with
respect to the issue thereof.

 

(c)    
During the period within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized and reserved at least 100% of the number of shares of Common Stock needed to provide
for the exercise of the rights then represented by this Warrant and the par value of said shares will at all times be less than
or equal to the applicable Warrant Exercise Price. If at any time the Company does not have a sufficient number of shares of Common
Stock authorized and available, then the Company shall call and hold a special meeting of its stockholders within 60 days of that
time, one of the purposes of which is to increase the number of authorized shares of Common Stock.

 

(d)    
If at any time after the date hereof the Company shall file a Registration Statement, the
Company shall include the Warrant Shares issuable to the holder, pursuant to the terms of this Warrant and shall maintain, so long
as any other shares of Common Stock shall be so listed, such listing of all Warrant Shares from time to time issuable upon the
exercise of this Warrant on the Primary Market or such national securities exchange or automated quotation system on which the
Common Stock of the Company is then listed or quoted; and the Company shall so list on the Primary Market or such national securities
exchange or automated quotation system on which the Common Stock of the Company is then listed, as the case may be, and shall maintain
such listing of, any other shares of capital stock of the Company issuable upon the exercise of this Warrant Shares if and so long
as any shares of the same class shall be listed on the Primary Market or such national securities exchange or automated quotation
system on which the Common Stock of the Company is then listed.

 

(e)     
The Company will not, by amendment of its Certificate of Incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek
to avoid the observance or performance of any of the terms to be observed or performed by it hereunder, but will at all times in
good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may reasonably
be requested by the holder of this Warrant in order to protect the exercise privilege of the holder of this Warrant against dilution
or other impairment, consistent with the tenor and purpose of this Warrant. The Company will not increase the par value of the
Common Stock above the Warrant Exercise Price then in effect, and (ii) will take all such actions as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of
this Warrant.

 

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(f)    
This Warrant will be binding upon any entity succeeding to the Company by merger, consolidation,
or acquisition of all or substantially all of the Company’s assets.

 

Section 4.     Taxes.
The Company shall pay any and all taxes, except any applicable withholding, which may be payable with respect to the issuance and
delivery of Warrant Shares upon exercise of this Warrant.

 

Section 5.     Holder
Not Deemed a Stockholder. Except as otherwise specifically provided herein, no holder, as such, of this Warrant shall be entitled
to vote or receive dividends or be deemed the holder of shares of capital stock of the Company for any purpose, nor shall anything
contained in this Warrant be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company
or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, conveyance, or otherwise), receive notice of meetings, receive dividends or subscription rights,
or otherwise, prior to the issuance to the holder of this Warrant of the Warrant Shares to which the holder is then entitled to
receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any
liabilities on such holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company,
whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 5, the Company
will provide the holder of this Warrant with copies of the same notices and other information given to the stockholders of the
Company generally, contemporaneously with the giving thereof to the stockholders.

 

Section 6.     Representations
of Holder. The holder of this Warrant, by the acceptance hereof, represents that it is acquiring this Warrant and the Warrant
Shares for its own account for investment only and not with a view towards, or for resale in connection with, the public sale or
distribution of this Warrant or the Warrant Shares, except pursuant to sales registered or exempted under the Securities Act; provided,
however, that, by making the representations herein, the holder does not agree to hold this Warrant or any of the Warrant
Shares for any minimum or other specific term and reserves the right to dispose of this Warrant and the Warrant Shares at any time
in accordance with or pursuant to a registration statement or an exemption under the Securities Act. The holder of this Warrant
further represents, by acceptance hereof, that, as of this date, such holder is an “accredited investor” as such term
is defined in Rule 501(a)(1) of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act
(an “Accredited Investor”). Upon exercise of this Warrant, the holder shall, if requested by the Company, confirm
in writing, in a form satisfactory to the Company, that the Warrant Shares so purchased are being acquired solely for the holder’s
own account and not as a nominee for any other party, for investment, and not with a view toward distribution or resale and that
such holder is an Accredited Investor. If such holder cannot make such representations because they would be factually incorrect,
it shall be a condition to such holder’s exercise of this Warrant that the Company receive such other representations as
the Company considers reasonably necessary to assure the Company that the issuance of its securities upon exercise of this Warrant
shall not violate any United States or state securities laws.

 

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Section 7.      Ownership
and Transfer.

 

(a)    
The Company shall maintain at its principal executive offices (or such other office or agency
of the Company as it may designate by notice to the holder hereof), a register for this Warrant, in which the Company shall record
the name and address of the person in whose name this Warrant has been issued, as well as the name and address of each transferee.
The Company may treat the person in whose name any Warrant is registered on the register as the owner and holder thereof for all
purposes, notwithstanding any notice to the contrary, but in all events recognizing any transfers made in accordance with the terms
of this Warrant.

 

Section 8.     Adjustment
of Warrant Exercise Price and Number of Shares. The Warrant Exercise Price and the number of shares of Common Stock issuable
upon exercise of this Warrant shall be adjusted from time to time as follows:

 

(a)    
Adjustment of Warrant Exercise Price upon Issuance of Common Stock. If and whenever
on or after the Issuance Date, the Company issues or sells, or is deemed to have issued or sold, any shares of Common Stock, excluding
shares of Common Stock underlying (i) the Convertible Debentures sold pursuant to the Securities Purchase Agreement, (ii)
the convertible debentures and warrant sold pursuant to the May Securities Purchase Agreement, or (iii) the convertible debentures
and warrant sold pursuant to the February Securities Purchase Agreement, for a consideration per share (the “New Issuance
Price”) less than the Warrant Exercise Price in effect immediately prior to such issuance or sale (the “Applicable
Price” ), then immediately after such issue or sale the Warrant Exercise Price then in effect shall be reduced to an
amount equal to the New Issuance Price.

 

(b)    
Effect on Warrant Exercise Price of Certain Events. For purposes of determining the
adjusted Warrant Exercise Price under Section 8(a), above, the following shall be applicable:

 

(i)                  
Issuance of Options. If after the date hereof, the Company in any manner grants any
Options and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or
upon conversion or exchange of any convertible securities issuable upon exercise of any such Option is less than the Applicable
Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the
time of the granting or sale of such Option for such price per share. For purposes of this Section 8(b)(i), the lowest price per
share for which one share of Common Stock is issuable upon exercise of such Options or upon conversion or exchange of such Convertible
Securities shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with
respect to any one share of Common Stock upon the granting or sale of the Option, upon exercise of the Option or upon conversion
or exchange of any convertible security issuable upon exercise of such Option. No further adjustment of the Warrant Exercise Price
shall be made upon the actual issuance of such Common Stock or of such convertible securities upon the exercise of such Options
or upon the actual issuance of such Common Stock upon conversion or exchange of such convertible securities.

 

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(ii)                
Issuance of Convertible Securities. If the Company in any manner issues or sells any
convertible securities and the lowest price per share for which one share of Common Stock is issuable upon the conversion or exchange
thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued
and sold by the Company at the time of the issuance or sale of such convertible securities for such price per share. For the purposes
of this Section 8(b)(ii), the lowest price per share for which one share of Common Stock is issuable upon such conversion
or exchange shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with
respect to one share of Common Stock upon the issuance or sale of the convertible security and upon conversion or exchange of such
convertible security. No further adjustment of the Warrant Exercise Price shall be made upon the actual issuance of such Common
Stock upon conversion or exchange of such convertible securities, and if any such issue or sale of such convertible securities
is made upon exercise of any Options for which adjustment of the Warrant Exercise Price had been or are to be made pursuant to
other provisions of this Section 8(b), no further adjustment of the Warrant Exercise Price shall be made by reason of such issue
or sale. 

 

(iii)               
Change in Option Price or Rate of Conversion. If the purchase price provided for in
any Options, the additional consideration, if any, payable upon the issue, conversion or exchange of any convertible securities,
or the rate at which any convertible securities are convertible into or exchangeable for Common Stock changes at any time, the
Warrant Exercise Price in effect at the time of such change shall be adjusted to the Warrant Exercise Price which would have been
in effect at such time had such Options or convertible securities provided for such changed purchase price, additional consideration
or changed conversion rate, as the case may be, at the time initially granted, issued or sold and the number of Warrant Shares
issuable upon exercise of this Warrant shall be correspondingly readjusted. For purposes of this Section 8(b)(iii), if the terms
of any Option or convertible security that was outstanding as of the Issuance Date of this Warrant are changed in the manner described
in the immediately preceding sentence, then such Option or convertible security and the Common Stock deemed issuable upon exercise,
conversion or exchange thereof shall be deemed to have been issued as of the date of such change. No adjustment pursuant to this
Section 8(b) shall be made if such adjustment would result in an increase of the Warrant Exercise Price then in effect.

 

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

 

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(v)                
Integrated Transactions. In case any Option is issued in connection with the issue
or sale of other securities of the Company, together comprising one integrated transaction in which any specific consideration
or no consideration is allocated to such Option by the parties thereto, (1) the per-share value of the shares of Common Stock included
in such integrated transaction shall be the sole determinate as to whether the Warrant Exercise Price is to be adjusted in accordance
with the provisions of Section 8(a), above, (2) if no shares of Common Stock are included in such integrated transaction, but shares
of the Company’s preferred stock are included in such integrated transaction, then the per-share conversion price of shares
of that preferred stock shall be the sole determinate as to whether the Warrant Exercise Price is to be adjusted in accordance
with the provisions of Section 8(a), above, and (3) if no shares of Common Stock and no shares of the Company’s preferred
stock are included in such integrated transaction, but debt convertible into shares of Common Stock (whether directly or through
an intermediate step, e.g., an initial conversion of that debt into shares of the Company’s preferred stock
that, thereafter, could be converted into shares of Common Stock), then the per-share conversion price of shares of such debt shall
be the sole determinate as to whether the Warrant Exercise Price is to be adjusted in accordance with the provisions of Section
8(a), above; provided, however, that, if the exercise price of the Option is less than the Warrant Exercise Price
(after having taken into account any adjustments thereto in accordance with the provisions of (1), (2), or (3), immediately above),
then the Option exercise price shall be utilized in connection with the Warrant Exercise Price adjustment provisions of Section
8(a), above.

 

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

 

(vii)             
Record Date. If the Company takes a record of the holders of Common Stock for the purpose
of entitling them (1) to receive a dividend or other distribution payable in Common Stock, Options, or in convertible securities
or (2) to subscribe for or purchase Common Stock, Options, or convertible securities, then such record date will be deemed to be
the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend
or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may
be.

 

(c)    
Adjustment of Warrant Exercise Price upon Subdivision or Combination of Common Stock.
If the Company at any time after the date of issuance of this Warrant subdivides (by any stock split, stock dividend, recapitalization,
or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, any Warrant Exercise
Price in effect immediately prior to such subdivision will be proportionately reduced and the number of shares of Common Stock
obtainable upon exercise of this Warrant will be proportionately increased. If the Company at any time after the date of issuance
of this Warrant combines (by combination, reverse stock split, or otherwise) one or more series of its then-outstanding shares
of Common Stock into a smaller number of shares, any Warrant Exercise Price in effect immediately prior to such combination will
be proportionately increased and the number of Warrant Shares issuable upon exercise of this Warrant will be proportionately decreased.
Any adjustment under this Section 8(c) shall become effective at the close of business on the date the subdivision or combination
becomes effective.

 

    	10

    	 

    

 

(d)    
Distribution of Assets. If the Company shall declare or make any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other securities, property, or options by way of a dividend,
spin off, reclassification, corporate rearrangement, or other similar transaction) (a “Distribution”), at any
time after the issuance of this Warrant, then, in each such case:

 

(i)                  
any Warrant Exercise Price in effect immediately prior to the close of business on the record
date fixed for the determination of holders of Common Stock entitled to receive the Distribution shall be reduced, effective
as of the close of business on such record date, to a price determined by multiplying such Warrant Exercise Price by a fraction
of which (A) the numerator shall be the Closing Sale Price of the Common Stock on the trading day immediately preceding such record
date minus the value of the Distribution (as determined in good faith by the Company’s Board of Directors) applicable to
one share of Common Stock, and (B) the denominator shall be the Closing Sale Price of the Common Stock on the trading day immediately
preceding such record date; and

 

(ii)                
either (A) the number of Warrant Shares obtainable upon exercise of this Warrant shall be
increased to a number of shares equal to the number of shares of Common Stock obtainable immediately prior to the close of business
on the record date fixed for the determination of holders of Common Stock entitled to receive the Distribution multiplied by the
reciprocal of the fraction set forth in the immediately preceding clause (i) or (B) in the event that the Distribution is of common
stock of a company whose common stock is traded on a national securities exchange or a national automated quotation system, then
the holder of this Warrant shall receive an additional warrant to purchase Common Stock, the terms of which shall be identical
to those of this Warrant, except that such warrant shall be exercisable into the amount of the assets that would have been payable
to the holder of this Warrant pursuant to the Distribution had the holder exercised this Warrant immediately prior to such record
date and with an exercise price equal to the amount by which the exercise price of this Warrant was decreased with respect to the
Distribution pursuant to the terms of the immediately preceding clause (i).

 

(e)    
Certain Events. If any event occurs of the type contemplated by the provisions of this
Section 8 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights, or other rights with equity features), then the Company’s Board of Directors will make an appropriate
adjustment in the Warrant Exercise Price and the number of shares of Common Stock obtainable upon exercise of this Warrant so as
to protect the rights of the holders of the Warrants; provided, that, except as set forth in section 8(c), no such adjustment
pursuant to this Section 8(e) will increase the Warrant Exercise Price or decrease the number of shares of Common Stock obtainable
as otherwise determined pursuant to this Section 8.

 

    	11

    	 

    

 

(f)     
Voluntary Adjustments By Company. The Company may at any time during the term of this
Warrant reduce the then-current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors
of the Company.

 

(g)    
Notices.

 

(i)                  
Immediately upon any adjustment of the Warrant Exercise Price, the Company will give written
notice thereof to the holder of this Warrant, setting forth in reasonable detail, and certifying, the calculation of such adjustment.

 

(ii)                
The Company will give written notice to the holder of this Warrant at least ten (10) days
prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution
upon the Common Stock, (B) with respect to any pro rata subscription offer to holders of Common Stock, or (C) for determining
rights to vote with respect to any Organic Change (as defined below), dissolution, or liquidation; provided, that, such
information shall be made known to the public prior to or in conjunction with such notice being provided to such holder.

 

(iii)               
The Company will also give written notice to the holder of this Warrant at least ten (10)
days prior to the date on which any Organic Change, dissolution, or liquidation will take place; provided, that, such information
shall be made known to the public prior to or in conjunction with such notice being provided to such holder.

 

Section 9.      Purchase
Rights; Recapitalization, Reorganization, Reclassification, Consolidation, Merger, or Sale.

 

(a)    
In addition to any adjustments pursuant to Section 8, above, if at any time the Company grants,
issues, or sells any Options, convertible securities, or rights to purchase shares of capital stock, warrants, securities, or other
property pro rata to the record holders of Common Stock (the “Purchase Rights”), then the holder of this Warrant
will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights that such holder
could have acquired if such holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant
immediately before the date on which a record is taken for the grant, issuance, or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue, or sale of
such Purchase Rights.

 

    	12

    	 

    

 

(b)    
Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all
or substantially all of the Company’s assets to another Person, or other transaction in each case that is effected in such
a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation) shares of capital stock,
securities, or assets with respect to or in exchange for Common Stock is referred to herein as an “Organic Change.”
Prior to the consummation of any (i) sale of all or substantially all of the Company’s assets to an acquiring Person or (ii)
other Organic Change, following which event the Company is not a surviving entity, the Company will secure from the Person purchasing
such assets or the successor resulting from such Organic Change (in each case, the “Acquiring Entity”) a written
agreement (in form and substance reasonably satisfactory to the Holder) to deliver to each holder of Warrants in exchange for such
Warrants, a security of the Acquiring Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant and satisfactory to the holders of the Warrants (including an adjusted warrant exercise price equal to the value for the
Common Stock reflected by the terms of such consolidation, merger, or sale, and exercisable for a corresponding number of shares
of Common Stock acquirable and receivable upon exercise of the Warrants without regard to any limitations on exercise, if the value
so reflected is less than any Applicable Warrant Exercise Price immediately prior to such consolidation, merger, or sale). Prior
to the consummation of any other Organic Change, the Company shall make appropriate provision (in form and substance satisfactory
to the holders of Warrants representing a majority of the Warrant Shares issuable upon exercise of the Warrants then outstanding)
to ensure that each of the holders of the Warrants will thereafter have the right to acquire and receive in lieu of or in addition
to (as the case may be) the Warrant Shares immediately theretofore issuable and receivable upon the exercise of such holder’s
Warrants (without regard to any limitations on exercise), such shares of capital stock, securities, or assets that would have been
issued or payable in such Organic Change with respect to or in exchange for the number of Warrant Shares that would have been issuable
and receivable upon the exercise of such holder’s Warrant as of the date of such Organic Change (without taking into account
any limitations or restrictions on the exercisability of this Warrant).

 

Section 10.   Lost,
Stolen, Mutilated, or Destroyed Warrant. If this Warrant is lost, stolen, mutilated, or destroyed, the Company shall promptly,
on receipt of an indemnification undertaking (or, in the case of a mutilated Warrant, the Warrant), issue a new Warrant of like
denomination and tenor as this Warrant so lost, stolen, mutilated, or destroyed.

 

Section 11.   Notice.
Any notices, consents, waivers, or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered pursuant to the notice provisions of the Securities Purchase Agreement
or to such other address and/or e-mail address and/or to the attention of such other person as the recipient party has specified
by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt
(i) given by the recipient of such notice, consent, waiver, or other communication, (ii) electronically generated by the sender’s
e-mail service provider containing the time, date, and recipient email, or (iii) provided by a courier or overnight courier
service shall be rebuttable evidence of personal service, receipt by facsimile, or receipt from a nationally recognized overnight
delivery service in accordance with this section.

 

Section 12.    Date.
The date of this Warrant is set forth on page 1 hereof. This Warrant, in all events, shall be wholly void and of no effect after
5:00 P.M. Eastern Time on the Expiration Date, except that, notwithstanding any other provisions hereof, the provisions of Section 3(d)
shall continue in full force and effect after such date as to any Warrant Shares or other securities issued upon the exercise of
this Warrant prior to such time on the Expiration Date.

 

    	13

    	 

    

 

Section 13.    Amendment
and Waiver. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any
action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the
written consent of the holders of Warrants representing at least 2/3rds of the Warrant Shares then-issuable upon exercise of the
Warrants then outstanding; provided, that, except for Section 8(c), no such action may increase the Warrant Exercise Price
or decrease the number of shares or class of capital stock obtainable upon exercise of this Warrant without the written consent
of the holder thereof.

 

Section 14.   Assignment.
This Warrant may be assigned by the Holder only if such assignment is made in compliance with all applicable laws, including federal
and state securities laws. In connection with any permitted assignment and prior to the effective date thereof, the prospective
assignee shall make such representations and warranties to the Company, consistent with Section 6 hereof, as the Company may reasonably
request.

 

Section 15.Descriptive
Headings; Governing Law. The descriptive headings of the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. The corporate laws of the State of New York shall govern all issues concerning
the relative rights of the Company and the Holder. All other questions concerning the construction, validity, enforcement, and
interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the
exclusive jurisdiction of the Supreme Court of the State of New York sitting in the Borough of Manhattan, New York, and the Federal
District Court for the Southern District of New York sitting in the Borough of Manhattan, New York, for the adjudication of any
dispute hereunder or in connection herewith or therewith, or with any transaction contemplated hereby or discussed herein, and
hereby irrevocably waives, and agrees not to assert in any suit, action, or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action, or proceeding is brought in an inconvenient forum or that the venue
of such suit, action, or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action, or proceeding by mailing a copy thereof (by certified mail, return receipt requested,
postage prepaid) to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law.

 

Section 16.   Remedies;
Other Obligations; Breaches; and Injunctive Relief. The remedies provided in this Warrant shall be cumulative and in addition
to all other remedies available under this Warrant, in any other agreement between the Company and the Holder, at law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder
to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach
may be inadequate. The Company, therefore, agrees that, in the event of any such breach or threatened breach, the holder of this
Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity
of showing economic loss and without any bond or other security being required.

 

Section 17.   Waiver
of Jury Trial. AS A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE PARTIES HERETO HEREBY WAIVE
ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE TRANSACTION DOCUMENTS
ASSOCIATED WITH THIS TRANSACTION.

Section 18. 

[REMAINDER
PAGE INTENTIONALLY LEFT BLANK]

 

    	14

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be signed as of the date first set forth above.

 

 

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

 

    	15

    	 

    

 

EXHIBIT A TO WARRANT

 

EXERCISE NOTICE

 

TO BE EXECUTED

BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

 

KONA GOLD BEVERAGE, INC.

 

The undersigned holder
hereby exercises the right to purchase ______________ of the shares of Common Stock (“Warrant Shares”) of KONA
GOLD BEVERAGE, INC. (the “Company”), evidenced by the attached Warrant (the “Warrant”). Capitalized
terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

Specify Method of exercise
by check mark:

 

1. ___Cash Exercise

 

(a) Payment
of Warrant Exercise Price. The holder shall pay the Aggregate Exercise Price of $______________ to the Company in accordance
with the terms of the Warrant.

 

(b) Delivery
of Warrant Shares. The Company shall deliver to the holder _________ Warrant Shares in accordance with the terms of
the Warrant.

 

2. ___Cashless Exercise

 

(a) Payment
of Warrant Exercise Price. In lieu of making payment of the Aggregate Exercise Price, if permitted by the terms of the Warrant,
the holder elects to receive upon such exercise the Net Number of shares of Common Stock determined in accordance with the terms
of the Warrant.

 

(b) Delivery
of Warrant Shares. The Company shall deliver to the holder _________ Warrant Shares in accordance with the terms of
the Warrant.

 

Date: _______________ __, ______

 

	Name of Registered Holder
	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

Address:

Taxpayer ID No.:

 

    	 

    	 

    

 

EXHIBIT B TO WARRANT

 

FORM OF WARRANT POWER

 

FOR VALUE RECEIVED,
the undersigned does hereby assign and transfer to ________________, Federal Identification No. __________, a warrant to purchase
____________ shares of the capital stock of KONA GOLD BEVERAGE, INC., represented by warrant certificate no. _____, standing
in the name of the undersigned on the books of said corporation. The undersigned does hereby irrevocably constitute and appoint
______________, attorney-in-fact to transfer the warrant of said corporation, with full power of substitution in the premises.

 

	Dated:________________________________________	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

B-1SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of August 20, 2021, is between KONA GOLD BEVERAGE, INC.,
a company incorporated under the laws of the State of Delaware, with principal executive offices located at 746 North Drive –
Suite A, Melbourne, Florida 32934 (the “Company”), and each of the investors listed on the Schedule of Buyers
attached hereto (individually, a “Buyer”; and, collectively, the “Buyers”).

 

WITNESSETH

 

WHEREAS, the Company
and each Buyer desire to enter into this transaction for the Company to sell and the Buyers to purchase the Convertible Debentures
(as defined below) pursuant to an exemption from registration pursuant to Section 4(a)(2) and/or Rule 506 of Regulation D
(“Regulation D”) as promulgated by the U.S. Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “Securities Act”);

 

WHEREAS, the parties
desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Buyer(s), as
provided herein, and the Buyer(s) shall purchase convertible debentures in the form attached hereto as “Exhibit A”
(collectively, the “Convertible Debentures”) in the aggregate principal amount of up to $3,000,000 (the “Subscription
Amount”), which shall be convertible into shares of the Company’s common stock, par value $0.00001 (the “Common
Stock”) (as converted, the “Conversion Shares”), of which $1,500,000 shall be purchased upon the signing
this Agreement (the “First Closing”) and $1,500,000 shall be purchased upon the later of (i) the date that the
Registration Statement that the Company is to file pursuant to the terms and conditions of the Registration Rights Agreement (as
defined below) has first been declared effective by the SEC or (ii) November 1, 2021 (the “Second Closing”)
(individually referred to as a “Closing”; collectively referred to as the “Closings”), at
a purchase price equal to 96% of the Subscription Amount (the “Purchase Price”) in the respective amounts set
forth opposite each Buyer(s) name on Schedule I;

 

WHEREAS, the Convertible
Debentures shall be secured, “on an equal footing” basis by all assets of the Company that are subject to (i) that
certain Security Agreement by and among the Investor (as this term is defined in such agreement), the Company and the Company’s
subsidiaries dated May 14, 2020 which was amended and restated as of February 10, 2021 and now as of the date hereof (all of such
security agreements shall be referred to as the “Security Agreement”), pursuant to which the Company and its
wholly owned subsidiaries agreed to provide the Investor with a security interest in Pledged Property (as this term is defined
in the Security Agreement), (ii) the Intellectual Property Security Agreement by and among the Investor, the Company and the Company’s
subsidiaries referenced therein dated May 14, 2020 and the Intellectual Property Security Agreement by and among the Investor,
the Company and the Company’s subsidiaries dated February 10, 2021 (all of such intellectual property security agreements
shall be referred to as the “IP Security Agreement”), pursuant to which the Company and its wholly owned subsidiaries
agreed to provide the Investor with a security interest in the intellectual property collateral (as this term is defined in the
IP Security Agreement), and (iii) the global guaranty the Company’s subsidiaries in favor or the Investor dated May 14, 2020
that was amended and restated as of February 10, 2021 and now as of the date hereof (the “Guaranty”; and, collectively
with the Security Agreement and the IP Security Agreement, the “Security Documents”) in favor of the Investor;

 

    	 

    	 

    

 

WHEREAS, contemporaneously
with the First Closing, the Company shall issue to the Investor a warrant to purchase up to 100,000,000 shares of the Company’s
Common Stock (the “Warrant Shares”) in the form attached hereto as Exhibit B (the “Warrant”);

 

WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement
(the “Registration Rights Agreement”), pursuant to which the Company has agreed to provide certain registration
rights under the Securities Act and the rules and regulations promulgated there under, and applicable state securities laws;

 

WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the Company is delivering Irrevocable Transfer Agent Instructions (the “Irrevocable
Transfer Agent Instructions”) to its transfer agent; and

 

WHEREAS, the Convertible
Debentures and the Conversion Shares and the Warrants and the Warrant Shares are collectively referred to herein as the “Securities.”

 

AGREEMENT

 

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

 

	1.	PURCHASE AND SALE OF CONVERTIBLE DEBENTURES AND WARRANTS.

 

(a)                   
Purchase of Convertible Debentures. Subject to the satisfaction (or waiver) of the conditions
set forth in Sections 6 and 7, below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly,
shall purchase from the Company at each Closing Convertible Debentures with principal amount corresponding with the Subscription
Amount set forth opposite each Buyer’s name on Schedule of Buyers attached as Schedule I hereto. 

 

(b)                   
Closing Dates. Each Closing of the purchase of Convertible Debentures by the Buyers shall
occur at the offices Yorkville Advisors Global, LP, 1012 Springfield Avenue, Mountainside, NJ 07092. The date and time of each
Closing shall be as follows: (i) the First Closing shall be 10:00 a.m., New York time, on the first Business Day on which the conditions
to the Closing set forth in Sections 6 and 7, below, are satisfied or waived (or such other date as is mutually agreed to by the
Company and each Buyer) (the “First Closing Date”) and (ii) the Second Closing shall be 10:00 a.m., New York time,
by the later of (A) the third Business Day after the Registration Statement is first declared effective by the SEC or (B) November
1, 2021, provided the conditions to the Closing set forth in Sections 6 and 7, below, are satisfied or waived (or such other date
as is mutually agreed to by the Company and each Buyer) (the “Second Closing Date”‘ and collectively referred
to as the “Closing Dates”). As used herein “Business Day” means any day other than a Saturday, Sunday,
or other day on which commercial banks in New York, New York are authorized or required by law to remain closed. 

 

    	2

    	 

    

 

(c)                    
Form of Payment; Deliveries. Subject to the satisfaction of the terms and conditions
of this Agreement, on each Closing Date, (i) the Buyers shall deliver to the Company the Purchase Price for the Convertible Debentures
to be issued and sold to such Buyer at such Closing, minus any fees or expenses to be paid directly from the proceeds of such Closing
as set forth herein and (ii) the Company shall deliver to each Buyer, the Convertible Debentures that such Buyer is purchasing
at such Closing with a principal amount corresponding with the Subscription Amount set forth opposite each Buyer’s name on
Schedule of Buyers attached as Schedule I hereto, duly executed on behalf of the Company.

 

	2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each Buyer, severally and
not jointly, represents and warrants to the Company with respect to only itself that, as of the date hereof and as of each Closing
Date:

 

(a)                   
Investment Purpose. The Buyer is acquiring the Securities for its own account for investment
purposes and not with a view toward, or for resale in connection with, the public sale or distribution thereof, except pursuant
to sales registered under or exempt from the registration requirements of the Securities Act; provided, however, that, by making
the representations herein, such Buyer does not agree, or make any representation or warranty, to hold any of the Securities for
any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with, or pursuant
to, a registration statement covering such Securities or an available exemption under the Securities Act. Such Buyer does not presently
have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities. 

 

(b)                   
Accredited Investor Status. The Buyer is an “Accredited Investor” as that term
is defined in Rule 501(a)(3) of Regulation D.

 

(c)                    
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold
to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws
and that the Company is relying in part upon the truth and accuracy of, and such Buyer’s compliance with, the representations,
warranties, agreements, acknowledgments, and understandings of such Buyer set forth herein in order to determine the availability
of such exemptions and the eligibility of such Buyer to acquire the Securities.

 

(d)                   
Information. The Buyer and its advisors (and his, her, or its counsel), if any, have been
furnished with all materials relating to the business, finances, and operations of the Company and information the Buyer or such
individual deemed material to making an informed investment decision regarding the Buyer’s purchase of the Securities that
have been requested by such Buyer. The Buyer and such individuals have been afforded the opportunity to ask questions of the Company
and its management. The Buyer understands that its investment in the Securities involves a high degree of risk. The Buyer has sought
such accounting, legal, and tax advice as it has considered necessary to make an informed investment decision with respect to its
acquisition of the Securities.

 

    	3

    	 

    

 

(e)                    
Transfer or Resale. The Buyer understands that: (i) the Securities have not been registered
under the Securities Act or qualified under any state securities laws, and may not be offered for sale, sold, assigned, or transferred
unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the Company an opinion of counsel, in a generally
acceptable form, to the effect that such Securities to be sold, assigned, or transferred may be sold, assigned, or transferred
pursuant to an exemption from such registration requirements, or (C) such Buyer provides the Company with reasonable assurances
(in the form of seller and broker representation letters) that such Securities can be sold, assigned, or transferred pursuant to
Rule 144 promulgated under the Securities Act, as amended (or a successor rule thereto) (collectively, “Rule 144”),
in each case following the applicable holding period set forth therein and (ii) any sale of the Securities made in reliance on
Rule 144 may be made only in accordance with the terms of Rule 144 and, further, if Rule 144 is not applicable, any resale of the
Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter
(as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the
rules and regulations of the SEC thereunder. 

 

(f)                    
Legends. The Buyer agrees to the imprinting, so long as its required by this Section 
2 (f), of a restrictive legend on the Securities in substantially
the following form:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
[AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS. THE SECURITIES [AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE BEEN
ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

 

Certificates evidencing the Conversion Shares
and/or the Warrant Shares shall not contain any legend (including the legend set forth above) (i) while a registration statement
covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Conversion Shares and/or
Warrant Shares] pursuant to Rule 144, (iii) if such Conversion Shares and/or Warrant Shares are eligible for sale under Rule 144,
or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the SEC). The Buyer agrees that the removal of restrictive legend from certificates representing
Securities as set forth in this Section 3(f) is predicated upon the Company’s reliance that the Buyer will sell any Securities
pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements,
or an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold in compliance
with the plan of distribution set forth therein.

 

    	4

    	 

    

 

(g)                    
Organization; Authority. Such Buyer is an entity duly organized, validly existing, and
in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into and
to consummate the transactions contemplated by the Transaction Documents (as defined below) to which it is a party and otherwise
to carry out its obligations hereunder and thereunder. 

 

(h)                   
Authorization, Enforcement. This Agreement has been duly and validly authorized, executed,
and delivered on behalf of such Buyer and shall constitute the legal, valid, and binding obligations of such Buyer enforceable
against such Buyer in accordance with its terms, except as such enforceability may be limited by general principles of equity or
to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, and other similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies.

 

(i)                     
No Conflicts. The execution, delivery, and performance by such Buyer of this Agreement and
the consummation by such Buyer of the transactions contemplated hereby will not (i) result in a violation of the organizational
documents of such Buyer, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would
become a default) under, or give to others any rights of termination, amendment, acceleration, or cancellation of, any agreement,
indenture, or instrument to which such Buyer is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment,
or decree (including federal and state securities laws) applicable to such Buyer, except, in the case of clauses (ii) and (iii),
above, for such conflicts, defaults, rights, or violations which could not, individually or in the aggregate, reasonably be expected
to have a material adverse effect on the ability of such Buyer to perform its obligations hereunder. 

 

(j)                     
Certain Trading Activities. The Buyer has not directly or indirectly, nor has any Person acting
on behalf of or pursuant to any understanding with the Buyer, engaged in any transactions in the securities of the Company (including,
without limitation, any Short Sales (as defined below) involving the Company’s securities) during the period commencing as
of the time that the Buyer first contacted the Company or the Company’s agents regarding the specific investment in the Company
contemplated by this Agreement and ending immediately prior to the execution of this Agreement by such Buyer. The Buyer hereby
agrees that it shall not, directly or indirectly, engage in any Short Sales involving the Company’s securities during the
period commencing on the date hereof and ending when no Convertible Debentures remain outstanding. “Short Sales” means
all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the 1934 Act (as defined below). The
Buyer is aware that Short Sales and other hedging activities may be subject to applicable federal and state securities laws, rules,
and regulations and the Buyer acknowledges that the responsibility of compliance with any such federal or state securities laws,
rules, and regulations is solely the responsibility of the Buyer. 

 

    	5

    	 

    

 

	3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

Except as set forth under
the corresponding section of the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and qualify any
representation or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations
and warranties set forth below to each Buyer:

 

(a)            
Organization and Qualification. The Company and each of its Subsidiaries are entities
duly formed, validly existing, and in good standing under the laws of the jurisdiction in which they are formed and have the requisite
power and authority to own their properties and to carry on their business as now being conducted and as presently proposed to
be conducted. The Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing
in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to
have a Material Adverse Effect (as defined below). As used in this Agreement, “Material Adverse Effect” means any material
adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial
or otherwise), or prospects of the Company and its Subsidiaries, taken as a whole, (ii) the transactions contemplated hereby or
in any of the other Transaction Documents or any other agreements or instruments to be entered into by the Company in connection
herewith or therewith, or (iii) the authority or ability of the Company to perform any of its obligations under any of the
Transaction Documents (as defined below). “Subsidiaries” means any Person in which the Company, directly or indirectly,
owns a majority of the outstanding capital stock having voting power or holds a majority of the equity or similar interest of such
Person, and each of the foregoing, is individually referred to herein as a “Subsidiary”.

 

(b)           
Authorization; Enforcement; Validity. The Company has the requisite power
and authority to enter into and perform its obligations under this Agreement and the other Transaction Documents and to issue the
Securities in accordance with the terms hereof and thereof. The execution and delivery of this Agreement and the other Transaction
Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without
limitation, the issuance of the Convertible Debentures and the reservation for issuance and issuance of the Conversion Shares issuable
upon conversion of the Convertible Debentures), have been duly authorized by the Company’s board of directors and no further
filing, consent, or authorization is required by the Company, its board of directors, or its stockholders or other governmental
body. This Agreement has been, and the other Transaction Documents to which the Company is a party will be, prior to the Closing,
duly executed and delivered by the Company, and each constitutes the legal, valid, and binding obligations of the Company, enforceable
against the Company in accordance with its respective terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, or similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution
may be limited by federal or state securities law. “Transaction Documents” means, collectively, this Agreement, the
Registration Rights Agreement, the Convertible Debentures, the Warrant, the Security Documents, the Irrevocable Transfer Agent
Instructions, and each of the other agreements and instruments entered into by the Company or delivered by the Company in connection
with the transactions contemplated hereby and thereby, as may be amended from time to time. 

 

    	6

    	 

    

 

(c)            
Issuance of Securities. The issuance of the Securities is duly authorized and, upon
issuance and payment in accordance with the terms of the Transaction Documents, the Securities shall be validly issued, fully paid,
and nonassessable and free from all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights
of first refusal, encumbrances, security interests, and other encumbrances (collectively, the “Liens”) with respect
to the issuance thereof. As of each Closing Date, the Company shall have reserved from its duly authorized capital stock (i) that
number of shares of Common Stock issuable upon the exercise of the Warrant in full, i.e., all of the Warrant Shares and (ii) not
less than 500% of the maximum number of shares of Common Stock issuable upon conversion of all Convertible Debentures (assuming
for purposes hereof that (A) such Convertible Debentures are convertible at the Conversion Price (as defined therein) as of the
date of determination and (B) any such conversion shall not take into account any limitations on the conversion of the Convertible
Debentures set forth therein). Upon issuance or conversion in accordance with the Convertible Debentures, and the exercise of the
Warrants, the Conversion Shares and Warrant Shares, when issued, will be validly issued, fully paid, and nonassessable and free
from all preemptive or similar rights or Liens with respect to the issuance thereof, with the holders being entitled to all rights
accorded to a holder of Common Stock. 

 

(d)           
No Conflicts. The execution, delivery, and performance of the Transaction Documents
by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation,
the issuance of the Convertible Debentures, the Conversion Shares, the Warrant, and the Warrant Shares and the reservation for
issuance of the Conversion Shares and Warrant Shares) will not (i) result in a violation of the Certificate of Incorporation (as
defined below), By-laws (as defined below), certificate of formation, memorandum of association, articles of association, bylaws
or other organizational documents of the Company or any of its Subsidiaries, or any capital stock or other securities of the Company
or any of its Subsidiaries, (ii) conflict with, or constitute a default under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party,
or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including, without limitation, U.S. federal
and state securities laws and regulations, the securities laws of the jurisdictions of the Company’s incorporation or in
which it or its subsidiaries operate and the rules and regulations of the OTC Markets Group Inc.’s (“OTC Markets”)
OTCQB® Venture Market (the “Principal Market”) and including all applicable laws, rules and regulations
of the State of Delaware) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company
or any of its Subsidiaries is bound or affected, except in the case of (ii) and (iii) for any conflict, default, right or violation
that would not reasonably be expected to result in a Material Adverse Effect. 

 

    	7

    	 

    

 

(e)            
Consents. The Company is not required to obtain any material consent from, authorization
or order of, or make any filing or registration with (other than any filings as may be required by any federal or state securities
agencies and any filings as may be required by the Principal Market), any Governmental Entity (as defined below) or any regulatory
or selfregulatory agency or any other Person in order for it to execute, deliver or perform any of its obligations under or contemplated
by the Transaction Documents, in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders,
filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been
or will be obtained or effected on or prior to each Closing Date, and neither the Company nor any of its Subsidiaries are aware
of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the
registration, application or filings contemplated by the Transaction Documents. The Company is not in violation of the requirements
of the Principal Market and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension
of the Common Stock in the foreseeable future. The Company has notified the Principal Market of the issuance of all of the Securities
hereunder, which does not require obtaining the approval of the stockholders of the Company or any other Person or Governmental
Entity, and the Principal Market has completed its review of the related Listing of Additional Share form. “Governmental
Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal,
state, local, municipal, foreign, or other government, governmental or quasigovernmental authority of any nature (including any
governmental agency, branch, department, official, or entity and any court or other tribunal), multinational organization or body;
or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing
authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled
by a government or a public international organization or any of the foregoing. 

 

(f)            
Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges
and agrees that each Buyer is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction
Documents and the transactions contemplated hereby and thereby and that no Buyer is (i) an officer or director of the Company or
any of its Subsidiaries, (ii) to its knowledge, an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act
(or a successor rule thereto) (collectively, “Rule 144”)) of the Company or any of its Subsidiaries or (iii) to its
knowledge, a “beneficial owner” of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d3
of the 1934 Act). The Company further acknowledges that no Buyer (nor any affiliate of any Buyer) is acting as a financial advisor
or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and
the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in connection
with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Buyer’s
purchase of the Securities. The Company further represents to each Buyer that the Company’s decision to enter into the Transaction
Documents to which it is a party has been based solely on the independent evaluation by the Company and its representatives. 

 

(g)           
No Integrated Offering. None of the Company, its Subsidiaries, or any of their affiliates,
nor any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers
to buy any security, under circumstances that would cause this offering of the Securities to require approval of stockholders of
the Company under any applicable stockholder approval provisions, including, without limitation, under the rules and regulations
of any exchange or automated quotation system on which any of the securities of the Company are listed or designated for quotation.
None of the Company, its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action or steps that
would cause the offering of any of the Securities to be integrated with other offerings of securities of the Company. 

 

    	8

    	 

    

 

(h)           
Dilutive Effect. The Company understands and acknowledges that the number of Conversion
Shares and Warrant Shares may increase in certain circumstances. The Company further acknowledges its obligation to issue the Conversion
Shares upon conversion of the Convertible Debentures and the Warrant Shares upon exercise of the Warrant in accordance with this
Agreement, the Convertible Debentures, and the Warrants is, absolute and unconditional regardless of the dilutive effect that such
issuance may have on the ownership interests of other stockholders of the Company. 

 

(i)             
Application of Takeover Protections; Rights Agreement. The Company and its board
of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, interested
stockholder, business combination, poison pill (including, without limitation, any distribution under a rights agreement), stockholder
rights plan, or other similar antitakeover provision under the Certificate of Incorporation, By-laws, or other organizational documents
or the laws of the jurisdiction of its incorporation or otherwise that is or could become applicable to any Buyer as a result of
the transactions contemplated by this Agreement, including, without limitation, the Company’s issuance of the Securities
and any Buyer’s ownership of the Securities. 

 

    	9

    	 

    

 

(j)             
SEC Documents; OTC Markets Documents; Financial Statements. The Company has filed
all reports, schedules, forms, statements, and other documents required to be filed by it with the OTC Markets in connection with
the quoting of its Common Stock on the Pink® Open Market during the two (2) years preceding the date of listing
of its Common Stock on the Principal Market and, from and after the date of listing of its Common Stock on the Principal Market,
has filed all reports, schedules, forms, statements, and other documents required to be filed by it with the OTC Markets in connection
therewith (all of the foregoing filings preceding the date thereof, as amended after the date thereof and all exhibits included
therein and financial statements and schedules thereto and documents incorporated by reference therein, being hereinafter referred
to as the “OTC Markets Documents”) on a timely basis or has received a valid extension of such time of filing. Since
the Company’s filing of its Registration Statement on Form S-1 on July 16, 2020 with the SEC (which filing was the Company’s
first filing with the SEC), the Company has timely filed all reports, schedules, forms, proxy statements, statements, and other
documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934,
as amended (the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits and appendices included
therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter
referred to as the “SEC Documents”). The Company has delivered or has made available to the Buyers or their respective
representatives true, correct, and complete copies of each of the SEC Documents not available on the EDGAR system. As of their
respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations
of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with
the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
As of their respective dates, the financial statements of the Company included in the SEC Documents complied in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as
of the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting principles
(“GAAP”), consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or
may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of
the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal yearend audit adjustments that will not be material, either individually or in the aggregate). The reserves,
if any, established by the Company or the lack of reserves, if applicable, are reasonable based upon facts and circumstances known
by the Company on the date hereof and there are no loss contingencies that are required to be accrued by the Statement of Financial
Accounting Standard No. 5 of the Financial Accounting Standards Board that are not provided for by the Company in its financial
statements or otherwise. No other information provided by or on behalf of the Company to any of the Buyers that is not included
in the SEC Documents (including, without limitation, information in the disclosure schedules to this Agreement) contains any untrue
statement of a material fact or omits to state any material fact necessary in order to make the statements therein not misleading,
in the light of the circumstance under which they are or were made. The Company is not currently contemplating to amend or restate
any of the financial statements (including, without limitation, any notes or any letter of the independent accountants of the Company
with respect thereto) included in the SEC Documents (the “Financial Statements”), nor is the Company currently aware
of facts or circumstances that would require the Company to amend or restate any of the Financial Statements, in each case, in
order for any of the Financial Statements to be in compliance with GAAP and the rules and regulations of the SEC. The Company has
not been informed by its independent accountants that they recommend that the Company amend or restate any of the Financial Statements
or that there is any need for the Company to amend or restate any of the Financial Statements. 

 

(k)           
Absence of Certain Changes. Since the date of the Company’s most recent audited
financial statements contained in a Form 10-K, there has been no Material Adverse Effect, nor any event or occurrence specifically
affecting the Company or its Subsidiaries that would be reasonably expected to result in a Material Adverse Effect. Since the date
of the Company’s most recent audited financial statements contained in a Form 10-K, neither the Company nor any of its Subsidiaries
has (i) declared or paid any dividends, (ii) sold any material assets, individually or in the aggregate, outside of the ordinary
course of business, or (iii) made any material capital expenditures, individually or in the aggregate, outside of the ordinary
course of business. Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law
or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation, or winding up, nor does the Company or
any Subsidiary have any knowledge or reason to believe that any of their respective creditors intends to initiate involuntary bankruptcy
proceedings or any actual knowledge of any fact that would reasonably lead a creditor to do so.

 

    	10

    	 

    

 

(l)             
No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability,
development, or circumstance has occurred or exists, or is reasonably expected to exist or occur specific to the Company, any of
its Subsidiaries or any of their respective businesses, properties, liabilities, prospects, operations (including results thereof)
or condition (financial or otherwise), that has not been publicly disclosed and would reasonably be expected to have a Material
Adverse Effect. 

 

(m)         
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries
is in violation of any term under its respective Certificate of Incorporation, any certificate of designation, preferences, or
rights of any other outstanding series of preferred stock of the Company or any of its Subsidiaries or By-laws or their organizational
charter, certificate of formation, memorandum of association, articles of association, Certificate of Incorporation or articles
of incorporation or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree,
or order or any statute, ordinance, rule, or regulation applicable to the Company or any of its Subsidiaries, and neither the Company
nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for violations
that would not reasonably be expected to have a Material Adverse Effect. Without limiting the generality of the foregoing, the
Company is not in violation of any of the rules, regulations, or requirements of the Principal Market and has no knowledge of any
facts or circumstances that could reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the
foreseeable future. During the one year prior to the date hereof, (i) the Common Stock has been listed or designated for quotation
on the Principal Market (actually, since January 2021), (ii) trading in the Common Stock has not been suspended by the SEC or the
Principal Market, and (iii) the Company has received no communication, written or oral, from the SEC or the Principal Market regarding
the suspension or delisting of the Common Stock from the Principal Market, that has not been publicly disclosed. The Company and
each of its Subsidiaries possess all certificates, authorizations, and permits issued by the appropriate regulatory authorities
necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits
would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and neither the Company
nor any of its Subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate,
authorization, or permit. There is no agreement, commitment, judgment, injunction, order, or decree binding upon the Company or
any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party that has or would reasonably be expected
to have the effect of prohibiting or materially impairing any business practice of the Company or any of its Subsidiaries, any
acquisition of property by the Company, or any of its Subsidiaries or the conduct of business by the Company or any of its Subsidiaries
as currently conducted other than such effects, individually or in the aggregate, that have not had and would not reasonably be
expected to have a Material Adverse Effect on the Company or any of its Subsidiaries. 

 

    	11

    	 

    

 

(n)           
Compliance with Laws. Definitions:

 

(a)          
“Anti-Bribery Laws” shall mean of any provision of any applicable law or
regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
or any applicable provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), or any
other similar law of any other jurisdiction in which the Company operates its business, including, in each case, the rules and
regulations thereunder.

 

(b)          
“Applicable Laws” shall mean applicable laws, statutes, rules, regulations,
orders, executive orders, directives, policies, guidelines, ordinance, or regulation of any governmental entity and codes having
the force of law, whether local, national, or international, as amended from time to time, including without limitation (i) all
applicable laws that relate to money laundering, terrorist financing, financial record keeping and reporting, (ii) all applicable
laws that relate to anti-bribery, anti-corruption, books and records, and internal controls, including the Anti-Bribery Laws, (iii)
Sanctions Laws and Anti-Money Laundering Laws. 

 

(c)             
“Anti-Money Laundering Laws” shall mean applicable financial recordkeeping
and reporting requirements and all other applicable U.S. and non-U.S. anti-money laundering laws, rules and regulations, including,
but not limited to, those of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the United States Bank Secrecy
Act, as amended by the USA PATRIOT Act of 2001, and the United States Money Laundering Control Act of 1986 (18 U.S.C. §§1956
and 1957), as amended, as well as the implementing rules and regulations promulgated thereunder, and the applicable money laundering
statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency or self-regulatory. 

 

(d)                
“Sanctions Laws” shall mean any and all applicable U.S. and nonU.S. laws
and regulations, including, but not limited to, the laws, regulations, and Executive Orders and sanctions programs (“Sanctions
Programs”) enforced or administered by the U.S. Office of Foreign Assets Control (“OFAC”) or the U.S. Departments
of State or Commerce, including, without limitation, (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg. 49079
(2001)); and any regulations contained in 31 CFR, Subtitle B, Chapter V.

 

(o)               
Compliance with Applicable Laws. The operations of the Company and its Subsidiaries
are and have been conducted at all times in compliance with and have not previously violated Applicable Laws and no action, suit,
or proceeding by or before any court or governmental agency, authority, or body or any arbitrator involving the Company or any
of its Subsidiaries with respect to Applicable Laws is pending or, to the knowledge of the Company, threatened. 

 

    	12

    	 

    

 

(p)               
Anti/Bribery/Foreign Corrupt Practices. Neither the Company nor any of its Subsidiaries
nor any director, officer, agent, or employee, nor any other person acting for or on behalf of the Company or any of its Subsidiaries
(individually and collectively, a “Company Affiliate”) has violated the U.S. Foreign Corrupt Practices Act (the “FCPA)
or any other applicable antibribery or anticorruption laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized
the payment of any money, or offered, given, promised to give, or authorized the giving of anything of value, to any officer, employee,
or any other person acting in an official capacity for any Governmental Entity to any political party or official thereof or to
any candidate for political office (individually and collectively, a “Government Official”) or to any person under
circumstances where such Company Affiliate knew or was aware of a high probability that all or a portion of such money or thing
of value would be offered, given, or promised, directly or indirectly, to any Government Official, for the purpose, in violation
of applicable law, of: (i) (A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing
such Government Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage,
or (D) inducing such Government Official to influence or affect any act or decision of any Governmental Entity or (ii) assisting
the Company or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company or its Subsidiaries.

 

(q)               
Equity Capitalization.

 

  (i)                     
Definitions:

 

(a)                
“Common Stock” means (x) the shares of the Company’s common stock, par value
$0.00001 per share, and (y) any capital stock into which such common stock shall have been changed or any share capital resulting
from a reclassification of such common stock.

 

(b)                
“Preferred Stock” means (x) the Company’s blank check preferred stock, par
value $0.00001 per share, the terms of which may be designated by the board of directors of the Company in a statement of designations,
(y) the series of designated preferred stock, par value $0.00001 per share, and (z) any capital stock into which such preferred
stock shall have been changed or any share capital resulting from a reclassification of such preferred stock (other than a conversion
of such preferred stock into Common Stock in accordance with the terms of the respective Certificates of Designation of Preferences,
Rights, and Limitations of the Series B Preferred Stock, the Series C Preferred Stock, and the Series D Preferred Stock).

 

(ii)           
Authorized and Outstanding Capital Stock. As of the date hereof, the authorized capital
stock of the Company consists of (A) 2,500,000,000 shares of Common Stock, of which 863,488,732 are issued and outstanding and
(B) 10,000,000 shares of Preferred Stock, allocated into three different series: 1,200,000 shares of Series B Preferred Stock (par
value $0.00001), 250 shares of Series C Preferred Stock (par value $0.00001), and 500,000 shares of Series D Preferred Stock (par
value $0.00001) (collectively, the “Preferred Stock”) of which 488,000 shares of Series B Preferred Stock, 140 shares
of Series C Preferred Stock, and 500,000 shares of Series D Preferred Stock are issued and outstanding.

 

(iii)         
Valid Issuance; Available Shares. All of such outstanding shares are duly authorized
and have been validly issued and are fully paid and nonassessable. 

 

    	13

    	 

    

 

(iv)                
Existing Securities; Obligations. Except as disclosed in the SEC Documents: (A)
none of the Company’s or any Subsidiary’s shares, interests, or capital stock is subject to preemptive rights or any
other similar rights or Liens suffered or permitted by the Company or any Subsidiary; (B) there are no outstanding options,
warrants, scrip, rights to subscribe to, calls, or commitments of any character whatsoever relating to, or securities or rights
convertible into, or exercisable or exchangeable for, any shares, interests, or capital stock of the Company or any of its Subsidiaries,
or contracts, commitments, understandings, or arrangements by which the Company or any of its Subsidiaries is or may become bound
to issue additional shares, interests, or capital stock of the Company or any of its Subsidiaries or options, warrants, scrip,
rights to subscribe to, calls, or commitments of any character whatsoever relating to, or securities or rights convertible into,
or exercisable or exchangeable for, any shares, interests, or capital stock of the Company or any of its Subsidiaries; (C)
there are no agreements or arrangements under which the Company or any of its Subsidiaries are obligated to register the sale of
any of their securities under the 1933 Act (except pursuant to this Agreement and in connection with the transactions contemplated
by the Securities Purchase Agreement by the parties hereto (and thereto), dated February 11, 2021 (the “February 2021 SPA”));
(D) there are no outstanding securities or instruments of the Company or any of its Subsidiaries that contain any redemption or
similar provisions, and there are no contracts, commitments, understandings, or arrangements by which the Company or any of its
Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (E) there are no securities
or instruments containing antidilution or similar provisions that will be triggered by the issuance of the Securities; and
(G) neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements
or any similar plan or agreement.

 

(v)                  
Organizational Documents. The Company has furnished to the Buyers or filed on EDGAR
true, correct, and complete copies of the Company’s Certificate of Incorporation, as amended and as in effect on the date
hereof (the “Certificate of Incorporation”), and the Company’s By-laws, as amended and as in effect on the date
hereof (the “By-laws”), and the terms of all convertible securities and the material rights of the holders thereof
in respect thereto.

 

(r)                
Litigation. Except as disclosed in the SEC Documents, there is no action, suit, arbitration,
proceeding, inquiry, or investigation before or by the Principal Market, any court, public board, other Governmental Entity, selfregulatory
organization, or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries,
the Common Stock, or any of the Company’s or its Subsidiaries’ officers or directors, whether of a civil or criminal
nature or otherwise, in their capacities as such, that would reasonably be expected to result in a Material Adverse Effect. After
reasonable inquiry of its employees, the Company is not aware of any event that might result in or form the basis for any such
action, suit, arbitration, investigation, inquiry, or other proceeding. Without limitation of the foregoing, there has not been,
and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company,
any of its Subsidiaries or any current or former director or officer of the Company or any of its Subsidiaries. Neither the Company
nor any of its Subsidiaries is the subject of any order, writ, judgment, injunction, decree, determination, or award of any Governmental
Entity that would reasonably be expected to result in a Material Adverse Effect. 

 

    	14

    	 

    

 

(s)                
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent
and customary in the businesses in which the Company and its Subsidiaries are engaged. In accordance with the previous sentence,
the Company currently maintains no insurance policies. Neither the Company nor any such Subsidiary has been refused any insurance
coverage sought or applied for, and neither the Company nor any such Subsidiary has any reason to believe that it will be unable
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 

 

(t)                
Manipulation of Price. Neither the Company nor any of its Subsidiaries has, and, to
the knowledge of the Company, no Person acting on their behalf has, directly or indirectly, (i) taken any action designed to cause
or to result in the stabilization or manipulation of the price of any security of the Company or any of its Subsidiaries to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of,
any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other
securities of the Company or any of its Subsidiaries. 

 

(u)               
Registration. Except as set forth in the SEC Documents, no Person has any right to
cause the Company to affect the registration under the Securities Act of any securities of the Company. The Company is eligible
to register the Securities to be issued hereunder on the Registration Statement. The Securities issued hereunder are exempt from
the qualification provisions of the Trust Indenture Act of 1939 (the “TIA”) and this Agreement and the transactions
contemplated herein comply in all respects with the TIA.

 

(v)               
Registration Eligibility. The Company is eligible to register the resale of the Conversion
Shares and the Warrant Shares by the Buyers using Form S1 promulgated under the 1933 Act. 

 

(w)             
Shell Company Status. In the reasoned opinion of McMurdo
Law Group, LLC, co-counsel to the Company, which opinion is dated April 2, 2019, and has been provided to, and accepted by, the
Investor, the Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i). 

 

    	15

    	 

    

 

(x)               
Disclosure. The Company confirms that neither it nor any other Person acting on its
behalf has provided any of the Buyers or their agents or counsel with any information that constitutes or could reasonably be expected
to constitute material, nonpublic information concerning the Company or any of its Subsidiaries, other than the existence of the
transactions contemplated by this Agreement and the other Transaction Documents. The Company understands and confirms that each
of the Buyers will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosures
provided to the Buyers regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, including
the schedules to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries, taken as a whole, are true
and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein, in the light of the circumstances under which they were made, not misleading. All of the written
information furnished after the date hereof by or on behalf of the Company or any of its Subsidiaries to each Buyer pursuant to
or in connection with this Agreement and the other Transaction Documents, taken as a whole, will be true and correct in all material
respects as of the date on which such information is so provided and will not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under
which they were made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or
any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including results thereof), or
conditions (financial or otherwise), which, under applicable law, rule, or regulation, requires public disclosure at or before
the date hereof or announcement by the Company but which has not been so publicly disclosed. All financial projections and forecasts
that have been prepared by or on behalf of the Company or any of its Subsidiaries and made available to the Buyers have been prepared
in good faith based upon reasonable assumptions and represented, at the time each such financial projection or forecast was delivered
to each Buyer, the Company’s best estimate of future financial performance (it being recognized that such financial projections
or forecasts are not to be viewed as facts and that the actual results during the period or periods covered by any such financial
projections or forecasts may differ materially from the projected or forecasted results). The Company acknowledges and agrees that
no Buyer makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 2. 

 

(y)               
No General Solicitation. Neither the Company, nor any of its affiliates, nor any Person
acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation
D under the Securities Act) in connection with the offer or sale of the Securities.

 

(z)               
Private Placement. Assuming the accuracy of the Buyers’ representations and warranties
set forth in Section 2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company
to the Buyers as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations
of the Primary Market. 

 

	4.	COVENANTS.

 

(a)                
Reporting Status. For the period beginning on the date hereof, and ending six months
after the date on which all of the Convertible Debentures and Warrants are no longer outstanding (the “Reporting Period”),
the Company shall file on a timely basis all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company
shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations
thereunder would no longer require the continued filing of such reports or would otherwise permit such termination. 

 

(b)                
Use of Proceeds. The Company shall use the proceeds from the issuance of the Convertible
Debentures hereunder for operating capital and other general corporate purposes. Neither the Company nor any Subsidiary will,
directly or indirectly, use the proceeds of the transactions contemplated herein to repay any loans to any executives or employees
of the Company or to make any payments in respect of any related party debt, all of which related party obligations shall be subordinated
to the obligations owed to the Buyer.1 Neither the Company nor any Subsidiary
will, directly or indirectly, use the proceeds of the transactions contemplated herein, or lend, contribute, facilitate or otherwise
make available such proceeds to any Person (i) to fund, either directly or indirectly, any activities or business of or with any
Person that is identified on the list of Specially Designated Nationals and Blocked Persons maintained by OFAC, or in any country
or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions Programs or (ii) in any
other manner that will result in a violation of Sanctions Programs. 

 

    	16

    	 

    

 

(c)                
Listing. To the extent applicable, the Company shall promptly secure the listing or
designation for quotation (as the case may be) of all of the Underlying Securities (as defined below) upon each national securities
exchange and automated quotation system, if any, upon which the Common Stock is then listed or designated for quotation (as the
case may be, each an “Eligible Market”), subject to official notice of issuance, and shall use reasonable efforts
to maintain such listing or designation for quotation (as the case may be) of all Underlying Securities from time to time issuable
under the terms of the Transaction Documents on such Eligible Market for the Reporting Period. Neither the Company nor any of its
Subsidiaries shall take any action that could be reasonably expected to result in the delisting or suspension of the Common Stock
on an Eligible Market during the Reporting Period. The Company 

 

(d)                
shall pay all fees and expenses in connection with satisfying its obligations under this Section
4(c). “Underlying Securities” means the (i) the Conversion Shares and the Warrant Shares and (ii) any Common
Stock of the Company issued or issuable with respect to the Conversion Shares or the Warrant Shares, including, without limitation,
(1) as a result of any stock split, stock dividend, recapitalization, exchange, or similar event or otherwise and (2) shares of
capital stock of the Company into which the shares of Common Stock are converted or exchanged without regard to any limitations
on conversion of the Convertible Debentures or the exercise of the Warrants. 

 

 1Notwithstanding
anything potentially to the contrary contained in this Section 4(a), and for clarity but not for limitation, upon the Company
s receipt of payment from a third party of its promissory obligation to the Company in the amount of approximately $1.5 million
(as of the date of this Agreement), the Company may cause (i) one or more of its subsidiaries to repay $100,000 of their respective
obligations (in the aggregate) to Robert Clark, as initially memorialized in that certain Line of Credit Agreement of Mr. Clark
in favor of Kona Gold, LLC, dated April 4, 2019 or in that certain Line of Credit Agreement of Mr. Clark in favor of Gold Leaf
Distribution, LLC, initially dated August 29, 2019 and (ii) Kona Gold, LLC, to repay in full (approximately $400,000 as of the
date of this Agreement) of its obligations to Matthew Nicoletti, as initially memorialized in that certain Line of Credit Agreement
of Mr. Nicoletti in favor of Kona Gold, LLC, dated May 5, 2018. Further, the Company and the Buyer agree that Mr. Nicoletti, although
a major creditor of the Company as of the date of this Agreement, was not, and is not deemed to be, a Related Party.

 

    	17

    	 

    

 

(e)                
Fees. The Company shall pay to YA Global II SPV, LLC, an affiliate of the lead Buyer
(the “Subsidiary Fund”) a one-time due diligence and structuring fee of $10,000, which shall be paid directly
from the gross proceeds of the First Closing. The Company authorizes each Buyer to deduct any fees due hereunder from the gross
process of the purchase of any Convertible Debentures. 

 

(f)                 
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement,
the Company acknowledges and agrees that, subject to compliance with applicable federal and state securities laws, the Securities
may be pledged by an Investor in connection with a bona fide margin agreement or other loan or financing arrangement that is secured
by the Securities. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably
request in connection with a pledge of the Securities to such pledgee by a Buyer. 

 

(g)                
Disclosure of Transactions and Other Material Information. On or before 9:30 a.m.,
New York time, on the first Business Day after the date of this Agreement, the Company shall file a Current Report on Form 8K describing
all the material terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching
all the material Transaction Documents (including, without limitation, this Agreement and all schedules to this Agreement) (including
all attachments, the “Current Report”). From and after the filing of the Current Report, the Company shall have
disclosed all material, nonpublic information (if any) provided to any of the Buyers by the Company or any of its Subsidiaries
or any of their respective officers, directors, employees, or agents in connection with the transactions contemplated by the Transaction
Documents. In addition, effective upon the filing of the Current Report, the Company acknowledges and agrees that any and all confidentiality
or similar obligations with respect to the transactions contemplated by the Transaction Documents under any agreement, whether
written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees,
or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand, shall terminate. The Company shall
not, and the Company shall cause each of its Subsidiaries and each of its and their respective officers, directors, employees,
and agents not to, provide any Buyer with any material, nonpublic information regarding the Company or any of its Subsidiaries
from and after the date hereof without first obtaining the express prior written consent of such Buyer (which may be granted or
withheld in such Buyer’s sole discretion).

 

    	18

    	 

    

 

(h)                
Reservation of Shares. So long as any of the Convertible Debentures remain outstanding,
the Company shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance, no less
than 500% of the maximum number of shares of Common Stock issuable upon conversion of all the Convertible Debentures then outstanding
(assuming for purposes hereof that (x) the Convertible Debentures are convertible at the Conversion Price then in effect and (y)
any such conversion shall not take into account any limitations on the conversion of the Convertible Debentures) (the “Required
Reserve Amount”); provided, that, at no time shall the number of shares of Common Stock reserved pursuant
to this Section 4(g) be reduced other than proportionally in connection with any conversion and/or redemption, or reverse stock
split. If at any time the number of shares of Common Stock authorized and reserved for issuance is not sufficient to meet the Required
Reserved Amount, the Company shall within thirty (30) calendar days commence the taking of all corporate action necessary to authorize
and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders to authorize
an increase the number of authorized shares to meet the Company’s obligations pursuant to the Transaction Documents, in the
case of an insufficient number of authorized shares, recommending that stockholders vote in favor of an increase in such authorized
number of shares sufficient to meet the Required Reserved Amount; provided that such authorized increase in reserve of a sufficient
number of shares and increase in the number of authorized shares shall occur no later than 90 calendar days from the commencement
of such corporate action. 

 

(i)                  
Additional Registration Statements. So long as the Convertible Debentures and/or Warrant
are outstanding and/or the Investor holds Conversion Shares and/or Warrant Shares and such Conversion Shares and/or Warrant Shares
are either not registered for resale pursuant to an effective registration statement or eligible for resale pursuant to an exemption
of the registration requirements of the Securities Act, except pursuant to the requirements set forth in the February 2021 SPA,
the Company will not file a registration statement under the Securities Act relating to securities that are not the Securities
without including the Conversion Shares and/or Warrant Shares issuable upon conversion of the Convertible Debentures and/or exercise
of the Warrant and/or such Conversion Shares and/or Warrant Shares issued and held by the Investor.

 

(j)                 
Registration Rights. As may otherwise be required by section 2(c) of the Registration
Rights Agreement and in addition to the requirements therein, so long as the Convertible Debentures and/or Warrant are outstanding
and/or the Investor holds Conversion Shares and/or Warrant Shares and such Conversion Shares and/or Warrant Shares issuable upon
conversion of the Convertible Debentures and/or exercise of the Warrant and/or are issued and held by the Investor are either not
registered for resale pursuant to an effective registration statement or eligible for resale pursuant to an exemption of the registration
requirements of the Securities Act, the Company shall file a registration statement or an amendment to the then-existing Registration
Statement (as this term is defined in the Registration Rights Agreement) under the Securities Act relating to the Conversion Shares
and/or Warrant Shares issuable upon conversion of the Convertible Debentures and/or exercise of the Warrant and/or issued and held
by the Investor. 

 

(k)                
Conduct of Business. The business of the Company and its Subsidiaries shall not be
conducted in violation of Applicable Laws or any law, ordinance, or regulation of any Governmental Entity, except where such violations
would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. The covenant
set forth above shall be ongoing while the Investor owns any Securities. The Company shall promptly notify the Investor in writing
should it become aware of (a) any changes to this covenant, or (b) if it cannot comply with the covenant set forth above. The Company
shall also promptly notify the Investor in writing should it become aware of an investigation, litigation, or regulatory action
relating to an alleged or potential violation of Applicable Laws.

 

    	19

    	 

    

 

(l)                  
From the date hereof until all the Convertible Debentures have been repaid, unless the holders
of at least 75% in principal amount of the then-outstanding Convertible Debentures shall have given prior written consent (which
consent shall not be unreasonably withheld, delayed, denied, or conditioned), the Company shall not, and shall not permit any of
its subsidiaries (whether or not a subsidiary on the date hereof) to, directly or indirectly (i) other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee, or suffer to exist any indebtedness for borrowed money
of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom, (ii) other than Permitted Liens, enter into, create, incur,
assume, or suffer to exist any lien, security interest, option, or other charge or
encumbrance (each, a “Lien”) of any kind, on or with
respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom,
(iii) amend its charter documents, including, without limitation, its Certificate of Incorporation and By-laws, in any manner
that materially and adversely affects any rights of the holders of the Convertible Debentures, (iv) make any payments in respect
of any related party debt, (v) enter into or agree to enter into any debenture, note, instrument, contract, financing arrangements,
or other transaction that allows the holder of such instrument or counterparty to such transaction to receive payments in or acquire
shares of Common Stock, for no consideration or consideration less than the volume weighted average price or closing bid price
of the Common Stock, or that varies or may vary with the volume weighted average price or closing bid price of the Common Stock,
as quoted by Bloomberg, LP, immediately prior to its issuance, (vi) enter into any
security instrument granting the holder a security interest in any and all assets of the Company, or (vii) other than for bona-fide
employee stock option plans, file any registration statement on Form S-8.

 

(m)              
“Permitted Indebtedness” shall mean: (i) the indebtedness evidenced by
the Convertible Debentures; (ii) any indebtedness described on a Disclosure Schedule attached hereto; (iii) any indebtedness incurred
solely for the purpose of financing the acquisition or lease of any equipment, including capital lease obligations with no recourse
other than to such equipment; (iv) any indebtedness, (A) the repayment of which has been subordinated to the payment of the Convertible
Debentures on terms and conditions reasonably acceptable to the Buyers, including with regard to interest payments and repayment
of principal, (B) that does not mature or otherwise require or permit redemption or repayment prior to or on the 91st day after
the maturity date of any Convertible Debentures then outstanding; and (C) that is not secured by any assets of the Company or its
subsidiaries; (v) indebtedness associated with acquiring new intellectual property assets and licenses, so long as the proceeds
are going to the party(ies) from whom the Company is acquiring the assets, licenses, and other properties; and (vi) any indebtedness
(other than the indebtedness set out in clauses (i) through (v), above) incurred after the date hereof, provided that such indebtedness
does not exceed $50,000 at any given time. 

 

(n)                
“Permitted Liens” shall mean: (i) any security interest granted to the
Buyers to secure the obligations under the Convertible Debentures; (ii) any prior security interest granted to the Buyers; (iii)
existing Liens disclosed by the Company on a Disclosure Schedule attached hereto; (iv) inchoate Liens for taxes, assessments, or
governmental charges or levies not yet due, as to which the grace period, if any, related thereto has not yet expired, or is being
contested in good faith and by appropriate proceedings for which adequate reserves have been established in accordance with GAAP;
(v) Liens of carriers, materialmen, warehousemen, mechanics, and landlords and other similar Liens that secure amounts that are
not yet overdue by more than 60 days or which are being contested in good faith by appropriate proceedings for which adequate reserves
have been established in accordance with GAAP; (vi) licenses, sublicenses, leases or subleases granted to other persons not materially
interfering with the conduct of the business of the Company; (vii) Liens securing capitalized lease obligations and purchase money
indebtedness incurred solely for the purpose of financing an acquisition or lease; (viii) easements, rights-of-way, restrictions,
encroachments, municipal zoning ordinances, and other similar charges or encumbrances, and minor title deficiencies, in each case
not securing debt and not materially interfering with the conduct of the business of the Company and not materially detracting
from the value of the property subject thereto; (ix) Liens arising out of the existence of judgments or awards, which judgments
or awards do not constitute an Event of Default; (x) Liens incurred in the ordinary course of business in connection with workers
compensation claims, unemployment insurance, pension liabilities, and social security benefits and Liens securing the performance
of bids, tenders, leases and contracts in the ordinary course of business, statutory obligations, surety bonds, performance bonds,
and other obligations of a like nature (other than appeal bonds) incurred in the ordinary course of business (exclusive of obligations
in respect of the payment for borrowed money); (xi) Liens in favor of a banking institution arising by operation of law encumbering
deposits (including the right of set-off) and contractual set-off rights held by such banking institution and that are within the
general parameters customary in the banking industry and only burdening deposit accounts or other funds maintained with a creditor
depository institution; (xii) usual and customary set-off rights in leases and other contracts; (xiii) escrows in connection with
acquisitions and dispositions; and (xiv) royalties and other rights to revenue derived from the sale of the Company’s products
that are granted in the ordinary course of business.

 

    	20

    	 

    

 

	5.	REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)                
Register. The Company shall maintain at its principal executive offices or with the
Transfer Agent (or at such other office or agency of the Company as it may designate by notice to each holder of Securities), a
register for the Convertible Debentures and Warrant in which the Company shall record the name and address of the Person in whose
name the Convertible Debentures and/or Warrant have been issued and granted, respectively (including the name and address of each
transferee), the amount of Convertible Debentures and Warrant held by such Person, and the number of Conversion Shares and Warrant
Shares issuable upon conversion of the Convertible Debentures or exercise of the Warrant held by such Person. The Company shall
keep the register open and available at all times during business hours for inspection of any Buyer or its legal representatives.

 

(b)                
Transfer Restrictions. The Securities may only be disposed of in compliance with state
and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement
or Rule 144, to the Company or to an Affiliate of a Buyer or in connection with a pledge as contemplated herein, the Company may
require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable
to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any
such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of
a Buyer under this Agreement. 

 

	6.	CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

The obligation of the
Company hereunder to issue and sell the Convertible Debentures to each Buyer at each Closing is subject to the satisfaction, at
or before each Closing Date, of each of the following conditions; provided, that these conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice
thereof:

 

    	21

    	 

    

 

(a)                
Such Buyer shall have executed each of the Transaction Documents to which it is a party and
delivered the same to the Company.

 

(b)                
Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less,
in the case of any Buyer, the amounts withheld pursuant to Section 4(d)) for the Convertible Debentures being purchased by such
Buyer at the Closing by wire transfer of immediately available funds in accordance with the Closing Statement. 

 

(c)                
The representations and warranties of such Buyer shall be true and correct in all material
respects as of the date when made and as of each Closing Date as though originally made at that time (except for representations
and warranties that speak as of a specific date, which shall be true and correct as of such specific date), and such Buyer shall
have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by such Buyer at or prior to such Closing Date. 

 

	7.	CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE.

 

The obligation of each Buyer hereunder to purchase
its Convertible Debentures at each Closing is subject to the satisfaction, at or before each Closing Date, of each of the following
conditions; provided, that these conditions are for each Buyer’s sole benefit and may be waived by such Buyer at any
time in its sole discretion by providing the Company with prior written notice thereof:

 

(a)                
The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents
to which it is a party and the Company shall have duly executed and delivered to such Buyer a Convertible Debenture with a principal
amount corresponding to the Subscription Amount set forth opposite such Buyer’s name on Schedule of Buyers attached as Schedule
I for the Closing. 

 

(b)                
Such Buyer shall have received the opinion of counsel to the Company, dated as of the First
Closing Date, in the form reasonably acceptable to such Buyer which shall include but not be limited to whether the Company is
an issuer defined as a “Shell Company,” as defined in paragraph (i)(1)(i) of Rule 144 or has been at any time previously
an issuer defined as a “Shell Company.”

 

(c)                
The Company shall have provided to the Investor an executed Officer’s Certificate in
a form satisfactory to the Investor and dated as of the Closing Date, as to (i) the Company’s Certificate of Incorporation,
(ii) the By-laws of the Company, (iii) the resolutions as adopted by the Company’s Board of Directors in a form reasonably
acceptable to the Investor, and (iv) the Company’s Certificate of Good Standing, each as in effect at the Closing.

 

(d)                
The Company’s controlling stockholder shall have provided the Investor a written agreement
acknowledging his agreement to not sell, transfer, or otherwise dispose of his controlling block of shares including but not limited
to preferred shares, or issue, assign, grant, or otherwise transfer such voting rights associated with such block of shares.

 

    	22

    	 

    

 

(e)                
The Company’s controlling stockholder shall have provided the Investor a written agreement
to vote in favor of any reverse stock splits that may be triggered under the Transaction Documents.

 

(f)                 
The Company’s controlling stockholder shall have provided the Investor a written agreement
acknowledging his agreement to not accept any payments in cash, shares of Common Stock, securities or otherwise of any debts or
obligations of any kind owed to him by the Company.

 

(g)                
The Company shall have delivered to each Buyer copies of its and each Subsidiaries certified
copies of its charter, as well as any stockholder or operating agreements by or among the stockholders, shareholders, or members
of any of the Company’s Subsidiaries.

 

(h)                
The Company shall have delivered to such Buyer a certificate evidencing the incorporation
and good standing of the Company as of a date within ten (10) days of the Closing Date. 

 

(i)                  
Each and every representation and warranty of the Company shall be true and correct in all
material respects (other than representations and warranties qualified by materiality, which shall be true and correct in all respects)
as of the date when made and as of each Closing Date as though originally made at that time (except for representations and warranties
that speak as of a specific date, which shall be true and correct as of such specific date) and the Company shall have performed,
satisfied and complied in all respects with the covenants, agreements and conditions set forth in each Transaction Document required
to be performed, satisfied or complied with by the Company at or prior to each Closing Date.

 

(j)                 
The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Principal
Market and (B) shall not have been suspended, as of each Closing Date, by the SEC or the Principal Market from trading on the Principal
Market nor shall suspension by the SEC or the Principal Market have been threatened, as of each Closing Date, either (I) in writing
by the SEC or the Principal Market or (II) by falling below the minimum maintenance requirements of the Principal Market. 

 

(k)                
The Company shall have obtained all governmental, regulatory, or third-party consents and
approvals, if any, necessary for the sale of the Securities, including, without limitation, those required by the Principal Market,
if any.

 

(l)                  
No statute, rule, regulation, executive order, decree, ruling, or injunction shall have been
enacted, entered, promulgated, or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation
of any of the transactions contemplated by the Transaction Documents. 

 

(m)              
Since the date of execution of this Agreement, no event or series of events shall have occurred
that has resulted in or would reasonably be expected to result in a Material Adverse Effect, or an Event of Default (as defined
in the Convertible Debentures). 

 

    	23

    	 

    

 

(n)                
The Company shall have obtained approval of the Principal Market to list or designate for
quotation (as the case may be) the maximum number of Conversion Shares issuable pursuant to the Convertible Debentures to be issued
at the Closing.

 

(o)                
Such Buyer shall have received a letter, duly executed by an officer of the Company, setting
forth the wire amounts of each Buyer and the wire transfer instructions of the Company (the “Closing Statement”).

 

(p)                
From the date hereof to the applicable Closing Date, trading in the Common Stock shall not
have been suspended by the SEC or the Principal Market (except for any suspension of trading of limited duration agreed to by the
Company, which suspension shall be terminated prior to the Closing) and (ii) at any time from the date hereof to the applicable
Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum
prices shall not have been established on securities whose trades are reported by such service, or on the Principal Market, nor
shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred
any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect
on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of each Buyer, makes
it impracticable or inadvisable to purchase the Securities at the Closing.

 

(q)                
The Company and its Subsidiaries shall have delivered to such Buyer such other documents,
instruments or certificates relating to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably
request. 

 

(r)                 
Solely with respect to the Second Closing, the later of (i) the Registration Statement shall
be effective in accordance with the provisions set forth in the Registration Rights Agreement, including the effectiveness deadline
set froth therein and (ii) November 1, 2021. 

 

	8.	TERMINATION.

 

In the event that the First
Closing shall not have occurred with respect to a Buyer within five (5) days of the date hereof, then such Buyer shall have the
right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business on
such date without liability of such Buyer to any other party; provided, however, (i) the right to terminate
this Agreement under this Section 8 shall not be available to such Buyer if the failure of the transactions contemplated by this
Agreement to have been consummated by such date is the result of such Buyer’s breach of this Agreement and (ii) the abandonment
of the sale and purchase of the Convertible Debentures shall be applicable only to such Buyer providing such written notice; provided,
further, however, that no such termination shall affect any obligation of the Company under this Agreement to reimburse
such Buyer for the expenses described herein. Nothing contained in this Section 8 shall be deemed to release any party from any
liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair
the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction
Documents.

 

    	24

    	 

    

 

	9.	MISCELLANEOUS.

 

(a)                
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction,
validity, enforcement, and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for
the adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any
transaction contemplated hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action, or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action, or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action, or proceeding by mailing a copy thereof
(by certified mail, return receipt requested, postage prepaid) to such party at the address for such notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be
deemed or operate to preclude any Buyer from bringing suit or taking other legal action against the Company in any other jurisdiction
to collect on the Company’s obligations to such Buyer or to enforce a judgment or other court ruling in favor of such Buyer.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER
TRANSACTION DOCUMENT, OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. 

 

(b)                
Counterparts. This Agreement may be executed in two or more identical counterparts,
all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party. In the event that any signature is delivered by an email which contains a portable document
format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original
thereof. 

 

(c)                
Headings; Gender. The headings of this Agreement are for convenience of reference
and shall not form part of, or affect the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each
pronoun herein shall be deemed to include the masculine, feminine, neuter, singular, and plural forms thereof. The terms “including,”
“includes,” “include” and words of like import shall be construed broadly as if followed by the words “without
limitation.” The terms “herein,” “hereunder,” “hereof” and words of like import refer
to this entire Agreement instead of just the provision in which they are found.

 

    	25

    	 

    

 

(d)                
Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written
agreements among the Buyer, the Company, their affiliates, and persons acting on their behalf with respect to the matters discussed
herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to
the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor any Buyer
makes any representation, warranty, covenant, or undertaking with respect to such matters. No provision of this Agreement may be
waived or amended other than by an instrument in writing signed by the party to be charged with enforcement. 

 

(e)                
Notices. Any notices, consents, waivers or other communications required or permitted
to be given under the terms of this Agreement must be in writing by letter and e-mail and will be deemed to have been delivered:
upon the later of (A) either (i) receipt, when delivered personally, or (ii) one (1) Business Day after deposit with an overnight
courier service with next day delivery specified, in each case, properly addressed to the party to receive the same and (B) receipt,
when sent by e-mail. The addresses and email addresses for such communications to the Company shall be:

 

 

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

Melbourne, FL 32934   

Attention: Robert Clark   

E-Mail: robert@konagoldbeverage.com    
	 	 
	With
a mandatory copy to (which shall not constitute notice):	Clark Hill LLP   

1055 West Seventh Street – 24th Floor   

Los Angeles, CA 90017   

Attention: Randolf Katz   

E-Mail: rkatz@clarkhill.com

 

The
addresses and email addresses for such communications to the Buyers shall be as set forth on the Schedule of Buyers, with copies
to such Buyer’s representatives as set forth on the Schedule of Buyers.

 

	With a mandatory copy to (which shall not constitute notice):	David Gonzalez, Esq.   

c/o Yorkville Advisors Global, LP   

1012 Springfield Avenue   

Mountainside, NJ 07092   

E-mail: legal@yorkvilleadvisors.com

 

Otherwise, communications
shall be to such other address, email address, and/or to the attention of such other Person as the recipient party has specified
by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt
(A) given by the recipient of such notice, consent, waiver, or other communication, (B) electronically generated by the
sender’s e-mail service provider containing the time, date, recipient e-mail address, or (C) provided by an overnight courier
service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in
accordance with clause (i), (ii) or (iii) above, respectively

 

    	26

    	 

    

 

(f)                 
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective successors and assigns, including any purchasers of any of the Convertible Debentures (but
excluding any purchasers of Underlying Securities, unless pursuant to a written assignment by such Buyer). The Company shall not
assign this Agreement or any rights or obligations hereunder without the prior written consent of the Buyers, which consent shall
not be unreasonably withheld, delayed, denied, or conditioned. In connection with any transfer of any or all of its Securities,
a Buyer may assign all, or a portion, of its rights and obligations hereunder in connection with such Securities with five (5)
day’s written notice to, but without the consent of, the Company, in which event such assignee shall be deemed to be a Buyer
hereunder with respect to such transferred Securities.

 

(g)                
Indemnification.

 

(i)                  
In consideration of each Buyer’s execution and delivery of the Transaction Documents
and acquiring the Securities thereunder and in addition to all of the Company’s other obligations under the Transaction Documents,
the Company shall defend, protect, indemnify, and hold harmless each Buyer and each holder of any Securities and all of their stockholders,
partners, members, officers, directors, employees, and direct or indirect investors and any of the foregoing Persons’ agents
or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this
Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities, and damages, and expenses in connection therewith (irrespective of whether
any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’
fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising
out of, or relating to (i) any misrepresentation or breach of any representation or warranty made by the Company in any of the
Transaction Documents, (ii) any breach of any covenant, agreement, or obligation of the Company or any Subsidiary contained in
any of the Transaction Documents, or (iii) any cause of action, suit, proceeding, or claim brought or made against such Indemnitee
by a third party (including for these purposes a derivative action brought on behalf of the Company or any Subsidiary) or that
otherwise involves such Indemnitee that arises out of or results from (A) the execution, delivery, performance, or enforcement
of any of the Transaction Documents, (B) any transaction financed or to be financed in whole or in part, directly or indirectly,
with the proceeds of the issuance of the Securities, or (C) any disclosure properly made by such Buyer pursuant to Section 4(f),
or (D) the status of such Buyer or holder of the Securities either as an investor in the Company pursuant to the transactions contemplated
by the Transaction Documents or as a party to this Agreement (including, without limitation, as a party in interest or otherwise
in any action or proceeding for injunctive or other equitable relief). To the extent that the foregoing undertaking by the Company
may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of
the Indemnified Liabilities that is permissible under applicable law.

 

    	27

    	 

    

 

(ii)                
Promptly after receipt by an Indemnitee under this Section 9(g) of notice of the commencement
of any action or proceeding (including any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee
shall, if a claim in respect thereof is to be made against the Company under this Section 9(g), deliver to the Company a written
notice of the commencement thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires,
to assume control of the defense thereof with counsel mutually reasonably satisfactory to the Company and the Indemnitee;
provided, however, that an Indemnitee shall have the right to retain its own counsel with the fees and expenses of
such counsel to be paid by the Company if: (A) the Company has agreed in writing to pay such fees and expenses; (B) the Company
shall have failed promptly to assume the defense of such Indemnified Liability and to employ counsel reasonably satisfactory to
such Indemnitee in any such Indemnified Liability; or (C) the named parties to any such Indemnified Liability (including any
impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by counsel that a
conflict of interest is likely to exist if the same counsel were to represent such Indemnitee and the Company (in which case, if
such Indemnitee notifies the Company in writing that it elects to employ separate counsel at the expense of the Company, then the
Company shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Company); provided,
further, that in the case of clause (C) above the Company shall not be responsible for the reasonable fees and expenses
of more than one (1) separate legal counsel for the Indemnitees. The Indemnitee shall reasonably cooperate with the Company in
connection with any negotiation or defense of any such action or Indemnified Liability by the Company and shall furnish to the
Company all information reasonably available to the Indemnitee which relates to such action or Indemnified Liability. The Company
shall keep the Indemnitee reasonably apprised at all times as to the status of the defense or any settlement negotiations with
respect thereto. The Company shall not be liable for any settlement of any action, claim or proceeding effected without its prior
written consent; provided, however, that the Company shall not unreasonably withhold, delay, deny, or condition its
consent. The Company shall not, without the prior written consent of the Indemnitee (which consent shall not be unreasonably withheld,
delayed, denied, or conditioned), consent to entry of any judgment or enter into any settlement or other compromise that does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability
in respect to such Indemnified Liability or litigation, and such settlement shall not include any admission as to fault on the
part of the Indemnitee. Following indemnification as provided for hereunder, the Company shall be subrogated to all rights of the
Indemnitee with respect to all third parties, firms, or corporations relating to the matter for which indemnification has been
made. The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall
not relieve the Company of any liability to the Indemnitee under this Section 9(g), except to the extent that the Company is materially
and adversely prejudiced in its ability to defend such action.

 

(iii)               
The indemnification required by this Section 9(g) shall be made by periodic payments of the
amount thereof during the course of the investigation or defense, within ten (10) days after bills supporting the Indemnified Liabilities
are received by the Company.

 

(iv)              
The indemnity agreement contained herein shall be in addition to (A) any cause of action or
similar right of the Indemnitee against the Company or others and (B) any liabilities the Company may be subject to pursuant to
the law. 

 

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

 

    	28

    	 

    

 

[REMAINDER
PAGE INTENTIONALLY LEFT BLANK]

 

    	29

    	 

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed
as of the date first written above.

 

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

 

    	30

    	 

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed
as of the date first written above.

 

 

	 	BUYER:
   
	 	 
	 	YA II PN, LTD.

	 	 
	 	By:	 Yorkville Advisors Global, LP 
	 	Its:	Investment Manager

 

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

 

    	31

    	 

    

 

LIST OF EXHIBITS:

 

    	32

    	 

    

 

EXHIBIT A

 

FORM OF CONVERTIBLE DEBENTURES

 

    	33

    	 

    

 

EXHIBIT B

 

FORM OF WARRANT

 

    	 

    	 

    

 

SCHEDULE OF BUYERS

 

	(a)	 	 	 	(b)	 	(c)
	 	 	 	 	Subscription	 	Purchase Price
	 	 	 	 	Amount of	 	(96% of
	 	 	 	 	Convertible	 	Subscription
	Buyer	 	 	 	Debentures	 	Amount)
	 	 	 	 	 	 	 
	YA II PN, Ltd.	 	 	 	 	 	 
	1012 Springfield Avenue	 	First Closing:	 	$	1,500,000.00	 	 	$	1,440,000.00	 
	Mountainside, NJ 07092	 	Second Closing	 	$	1,500,000.00	 	 	$	1,440,000.00	 
	E-mail: Legal@yorkvilleadvisors.com	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate:	 	$	3,000,000.00	 	 	$	2,880,000.00	 

 

Legal Representative’s Address and E-Mail Address

David Gonzalez, Esq.

1012 Springfield Avenue

Mountainside, NJ 07092E-mail:

Legal@yorkvilleadvisors.com

 

2

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