Document:

Exhibit 10.1

 

VOTING
AND SUPPORT AGREEMENT

 

THIS
AGREEMENT is made as of the ____ day of ________________, 20__.

 

BETWEEN:

 

THE
PERSONS LISTED ON APPENDIX “A” HERETO, (collectively, the “Shareholders” and each individually
a “Shareholder”)

 

-
and -

 

TORCHLIGHT
ENERGY RESOURCES, INC., a corporation existing
under the laws of Nevada (“Torchlight”)

 

WHEREAS
each Shareholder is the registered and/or direct or indirect beneficial owner of the common shares (“META Shares”),
stock options, deferred share units and/or common share purchase warrants (“META Convertible Securities”) in
the capital of Metamaterial Inc., a corporation existing under the laws of Ontario (“META”) set forth opposite
such Shareholder’s name in Appendix “A” hereto (collectively, the “Subject Securities”);

 

AND
WHEREAS each Shareholder understands that, concurrently with the execution and delivery of this Agreement, META and Torchlight
are entering into the Arrangement Agreement (as defined herein) providing for the Arrangement (as defined herein) whereby Torchlight
proposes to indirectly acquire all of the issued and outstanding voting and equity securities of META;

 

AND
WHEREAS in order for each Shareholder to realize the benefits that will accrue to such Shareholder in connection with the
consummation of the Arrangement, each Shareholder desires to enter into this Agreement to provide his or her support for completion
of the Arrangement on the terms and conditions set forth herein;

 

AND
WHEREAS each Shareholder acknowledges that Torchlight would not enter into the Arrangement Agreement but for the execution
and delivery of this Agreement by such Shareholder;

 

AND
WHEREAS this Agreement sets out the terms and conditions of the agreement of each Shareholder to abide by the covenants in
respect of the Subject Securities and the other restrictions and covenants set forth herein;

 

AND
WHEREAS the foregoing recitals, and the representations, warranties and covenants provided herein, are made or provided by
each Shareholder only with respect to such Shareholder and such Subject Securities and, for greater certainty, are not made or
provided in relation to any other Shareholder or such Shareholder’s Subject Securities;

 

NOW
THEREFORE this Agreement witnesses that, in consideration of the premises and the covenants and agreements herein contained,
the parties hereto agree as follows:

     

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ARTICLE 1

INTERPRETATION

 

		1.1	Definitions

 

In
this Agreement:

 

“Affiliate”
has the meaning ascribed thereto in the Securities Act (Ontario) and the rules, regulations, instruments (including national
and multilateral instruments) and published policies made thereunder, as now in effect and as they may be promulgated or amended
from time to time;

 

“Arrangement”
means the arrangement of META and Torchlight under Section 182 of the OBCA on the terms and subject to the conditions set out
in the Plan of Arrangement, subject to any amendments or variations to the Plan of Arrangement made in accordance with the terms
of the Arrangement Agreement or the Plan of Arrangement or made at the direction of the Court in the Final Order with the consent
of the parties to the Arrangement Agreement, each acting reasonably;

 

“Arrangement
Agreement” means the arrangement agreement, including the schedules thereto, of even date herewith, between Torchlight
and META, a copy of which is attached hereto as Appendix “B”, as it may be amended, supplemented or modified from
time to time in accordance with its terms; and

 

“Transaction
Shareholder Approval” has the meaning ascribed thereto in Section 2.1.

 

		1.2	Definitions
in Arrangement Agreement

 

All
terms used in this Agreement that are not defined in Section 1.1 or elsewhere in this Agreement and that are defined in the Arrangement
Agreement shall have the respective meanings ascribed to them in the Arrangement Agreement.

 

		1.3	Appendices

 

The
following Appendices attached hereto constitute an integral part of this Agreement:

 

	Appendix
    “A”	-	Subject
    Securities
	 	 	 
	Appendix
    “B”	-	Arrangement
    Agreement
	 	 	 

ARTICLE 2

COVENANTS OF THE SHAREHOLDERS

 

		2.1	Shareholder
Support

 

In
connection with the Arrangement (and any transactions contemplated in connection with the Arrangement Agreement), if and only
if, any approval of securityholders of META is required under applicable Securities Laws (including the Canadian Securities Exchange
and, for greater certainty, any “minority approval” as such term is defined in Multilateral Instrument 61-101 –
Protection of Minority Securityholders in Special Transactions) (“Transaction Shareholder Approval”),
each of the Shareholders severally, and not jointly or jointly and severally, hereby covenants, undertakes and agrees from time
to time, until such time as this Agreement is terminated in accordance with Article 4, to cause to be counted as present
for purposes of establishing quorum and to vote (or cause to be voted) all of the Subject Securities (to the extent they carry
a right to vote): (i) at any meeting of any of the securityholders of META at which the Shareholder or any registered or beneficial
owner of the Subject Securities are entitled to vote to obtain the Transaction Shareholder Approval; or (ii) in any action by
written consent of the securityholders of META, in favour of the approval, consent, ratification and adoption of any resolution
approving the Arrangement (and any transactions contemplated in connection with the Arrangement Agreement).

     

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		2.2	Restrictions
with Respect to Subject Securities

 

Each
Shareholder hereby severally, and not jointly or jointly and severally, covenants and agrees that, from the date hereof until
the earlier of (i) the Effective Time, (ii) the termination of this Agreement in accordance with Article 4, or (iii) it being
determined (by mutual agreement of Torchlight and META) that the Transaction Shareholder Approval is not required, except as permitted
by this Agreement, such Shareholder will:

 

		(a)	not,
                                         directly or indirectly, option, sell, assign, transfer, pledge, encumber, grant a participation
                                         or security interest in or power of attorney over, hypothecate or otherwise convey or
                                         dispose of any Subject Securities, or any right or interest therein (legal or equitable),
                                         to any Person or group or Persons acting jointly or in concert or enter into any agreement,
                                         option or other arrangement to do any of the foregoing (each of the foregoing, a “Transfer”),
                                         other than to one or more of a parent, spouse, child or grandchild of, or a corporation,
                                         partnership, limited liability company or other entity controlled solely by, the Shareholder
                                         or a trust or account (including a Registered Retirement Savings Plan, Registered Education
                                         Savings Plan, Registered Retirement Income Fund or similar account) existing for the
                                         benefit of such Person or entity; provided, that a Transfer referred to in this sentence
                                         shall only be permitted if, as a precondition to such Transfer, the transferee agrees
                                         in writing, in form and substance reasonably acceptable to Torchlight, to be bound by
                                         all of the terms of this Agreement with respect to the Subject Securities; and provided
                                         further, that in the case of a Transfer to a corporation, partnership, limited liability
                                         company or other entity solely controlled by, the Shareholder, such entity shall remain
                                         solely controlled by the Shareholder until the earlier of: (i) the Effective Time; and
                                         (ii) the termination of this Agreement in accordance with Article 4. Any purported
                                         transfer of any Subject Securities or interest therein in violation of this Section 2.2(a)
                                         shall be null and void;

 

		(b)	not,
                                         directly or indirectly, grant or agree to grant any proxy or other right to vote any
                                         Subject Securities, except for any proxies granted to vote in favour of any Transaction
                                         Shareholder Approval in accordance with Section 2.1, or enter into any voting trust,
                                         vote pooling or other agreement with respect to the right to vote, call meetings of any
                                         of the shareholders of META or give consents or approval of any kind as to any Subject
                                         Securities;

 

		(c)	not
                                         vote or cause to be voted any Subject Securities in favor of, and vote or cause to be
                                         voted all Subject Securities against, any proposed action, transaction or agreement by
                                         or involving META or any of its Affiliates or the Shareholder or any other Person in
                                         a manner which could reasonably be expected to (i) prevent, hinder or delay the successful
                                         completion of the Arrangement or the transactions contemplated by the Arrangement Agreement;
                                         or (ii) change in any manner the voting rights of any class of shares of META;

     

    - 4 - 

    

		(d)	other
                                         than set forth herein, take all such steps as are necessary or advisable to ensure that
                                         at all relevant times his, her or its Subject Securities will not be subject to any shareholders’
                                         agreements, voting trust or similar agreements or any option, right or privilege (whether
                                         by law, pre-emptive or contractual) capable of becoming a shareholders’ agreement,
                                         voting trust or other agreement affecting or restricting the ability of him or her to
                                         exercise all voting rights attaching to such Subject Securities;

 

		(e)	not
                                         withdraw, amend, modify or qualify, or publicly propose or state an intention to withdraw,
                                         amend, modify or qualify, support for the transactions contemplated by the Arrangement
                                         Agreement; and

 

		(f)	irrevocably
                                         waives to the fullest extent permitted by Law any and all rights of the Shareholder to
                                         dissent with respect to the Arrangement, and will not exercise any such rights with respect
                                         to the Arrangement or the transactions contemplated by the Arrangement Agreement.

 

		2.3	Voting
of the Subject Securityholders

 

Each
Shareholder hereby agrees with Torchlight that it will, on or before the fifth Business Day prior to any meeting of any of the
securityholders of META in respect of any Transaction Shareholder Approval, duly complete forms of proxy in respect of all of
his, her or its Subject Securities, and any other required documents in connection therewith , and cause same to be validly delivered
in support of (and indicating that all Subject Securities are voted in favour of approving) the Arrangement (and any transactions
contemplated in connection with the Arrangement Agreement) and will not withdraw the forms of proxy except as expressly otherwise
provided in this Agreement. Each Shareholder further agrees that it will, on or before the fifth Business Day prior to any meeting
of any of the securityholders of META in respect of any Transaction Shareholder Approval to be called to approve the Arrangement
(and any transactions contemplated in connection with the Arrangement Agreement), deliver or cause to be delivered to Torchlight
in accordance with Section 5.10 of this Agreement, a copy or screenshot of the duly completed and signed forms of proxy described
in the preceding sentence.

 

		2.4	Meaning
of Subject Securities.

 

The
term “Subject Securities” means that number of META Shares and META Convertible Securities set forth opposite
a Shareholder’s name in Appendix “A” hereto, being all of the securities of META owned legally or beneficially,
either directly or indirectly, by such Shareholder or over which the Shareholder exercises direct or indirect control or discretion,
and will be deemed to also include (a) any META Shares and META Convertible Securities issued to the Shareholder pursuant to any
stock dividend, stock split, recapitalization, reclassification, combination or exchange of META Shares or META Convertible Securities
on, of, or affecting the Subject Securities on or after the date of this Agreement and (b) any META Shares and META Convertible
Securities acquired by the Shareholder on or after the date of this Agreement, or issued to the Shareholder, on or after the date
of this Agreement (including pursuant to the exercise, conversion or vesting of any securities of META that are exercisable for,
convertible into or vest as META Shares (including all Subject Securities)), and all such acquired META Shares and META Convertible
Securities shall be deemed Subject Securities and subject to the terms of this Agreement as though owned by the Shareholder as
of the date hereof.

     

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ARTICLE
3
 REPRESENTATIONS AND WARRANTIES

 

		3.1	Representations
and Warranties of the Shareholder

 

Each
Shareholder hereby severally, and not jointly or jointly and severally, represents and warrants to and covenants with Torchlight
as follows, and acknowledges that Torchlight is relying upon such representations, warranties and covenants in entering into this
Agreement:

 

		(a)	Incorporation;
                                         Authorization. If the Shareholder is a corporation or other legal entity, such Shareholder
                                         is a subsisting corporation or other entity under the laws of its incorporating or organizational
                                         jurisdiction. The Shareholder has all necessary power, authority, capacity and right
                                         to enter into this Agreement and to carry out each of its obligations under this Agreement.
                                         This Agreement has been duly executed and delivered by the Shareholder and, assuming
                                         due authorization, execution and delivery by Torchlight, constitutes a legal, valid and
                                         binding agreement enforceable by Torchlight against the Shareholder in accordance with
                                         its terms, subject, however, to limitations with respect to enforcement imposed by law
                                         in connection with bankruptcy, insolvency, reorganization or other laws affecting creditors’
                                         rights generally and to the extent that equitable remedies such as specific performance
                                         and injunctions are only available in the discretion of the court from which they are
                                         sought.

 

		(b)	Ownership
                                         of Subject Securities. The Shareholder is, and, subject to any Transfer permitted
                                         pursuant to Section 2.2(a), will be continuously up until the Effective Time, the direct
                                         or indirect beneficial owner of the Subject Securities set out opposite such Shareholder’s
                                         name at Appendix “A”, with good and marketable title thereto, free and clear
                                         of any and all mortgages, liens, charges, restrictions, security interests, adverse claims,
                                         pledges, encumbrances and demands or rights of others of any nature or kind whatsoever.
                                         The Shareholder does not own or have any interest in any securities of META other than
                                         the Subject Securities. The Shareholder is not a party to, bound or affected by or subject
                                         to, any charter or by-law, contract, agreement provision, statute, regulation, judgment,
                                         order, decree or law which would be violated, contravened, breached by, or under which
                                         any default would occur as a result of, the execution and delivery of this Agreement
                                         or the consummation of any of the transactions provided for in this Agreement.

 

		(c)	No
                                         Agreements. No Person has any agreement or option, or any right or privilege (whether
                                         by law, pre-emptive or contractual) capable of becoming an agreement or option, for the
                                         purchase, acquisition or transfer of any of the Subject Securities, or any interest therein
                                         or right thereto, except pursuant to this Agreement.

 

		(d)	Voting.
                                         None of such Subject Securities is subject to any proxy, power of attorney, voting trust,
                                         vote pooling or other agreement with respect to the right to vote, call meetings of any
                                         of the shareholders of META or give consents or approvals of any kind, except pursuant
                                         to this Agreement.

 

		(e)	Consents.
                                         No consent, waiver, approval, authorization, exemption, registration, licence or declaration
                                         of or by, or filing with, or notification to any Governmental Entity which has not been
                                         made or obtained is required to be made or obtained by the Shareholder in connection
                                         with (i) the execution and delivery by the Shareholder and enforcement against the Shareholder
                                         of this Agreement, or (ii) the consummation of any transactions by the Shareholder provided
                                         for herein.

     

    - 6 - 

    

		(f)	Legal
                                         Proceedings. There are no legal proceedings in progress or pending before any Governmental
                                         Entity or, to the knowledge of the Shareholder, threatened against the Shareholder or
                                         any of its Affiliates, or any of the Subject Securities or other property of the Shareholder
                                         or any of its Affiliates, and there is no judgment, decree or order against the Shareholder
                                         or its Affiliates, or any of the Subject Securities or other property of the Shareholder
                                         or any of its Affiliates, that would adversely affect in any manner the ability of the
                                         Shareholder to enter into this Agreement or adversely affect the Shareholder’s
                                         ability to perform its obligations hereunder or the title of the Shareholder to any of
                                         its Subject Securities.

 

		(g)	No
                                         Commitment. None of the Subject Securities held by the Shareholder is the subject
                                         of any commitment, undertaking or agreement, the terms of which would affect in any way
                                         the ability of the Shareholder to perform the Shareholder’s obligations with respect
                                         to such Subject Securities as set out in this Agreement.

 

		3.2	Representations
and Warranties of Torchlight

 

Torchlight
hereby represents and warrants to each Shareholder as follows, and acknowledges that the Shareholder is relying upon such representations,
warranties and covenants in entering into this Agreement:

 

		(a)	Torchlight
                                         is a corporation duly incorporated and validly existing under the laws of Nevada and
                                         it has the requisite corporate power, authority and capacity to enter into this Agreement
                                         and to perform its obligations hereunder;

 

		(b)	this
                                         Agreement has been duly executed and delivered by Torchlight and constitutes a legal,
                                         valid and binding agreement enforceable by the Shareholder against Torchlight in accordance
                                         with its terms, subject, however, to limitations with respect to enforcement imposed
                                         by law in connection with bankruptcy, insolvency, reorganization or other laws affecting
                                         creditors’ rights generally and to the extent that equitable remedies such as specific
                                         performance and injunctions are only available in the discretion of the court from which
                                         they are sought;

 

		(c)	none
                                         of the execution and delivery by Torchlight of this Agreement or the compliance by Torchlight
                                         with its obligations hereunder will violate, contravene, result in any breach of, or
                                         be in conflict with, or constitute a default under, or create a state of facts which
                                         after notice or lapse of time or both would constitute a default under, any term or provision
                                         of: (i) any organizational documents of Torchlight; (ii) any contract to which Torchlight
                                         is a party or by which Torchlight is bound; (iii) any judgment, decree, order or award
                                         of any Governmental Entity; or (iv) any applicable law, except in each case as would
                                         not reasonably be expected, either individually or in the aggregate, to materially impair
                                         the ability of Torchlight to perform its obligations hereunder or that would reasonably
                                         be expected to prevent or materially delay the completion of the Arrangement; and

 

		(d)	there
                                         are no legal proceedings in progress or pending against or, to the knowledge of Torchlight,
                                         threatened against Torchlight or any of its Affiliates that would adversely affect in
                                         any manner the ability of Torchlight to enter into this Agreement and to perform its
                                         obligations hereunder or that would reasonably be expected to prevent or materially delay
                                         the completion of the Arrangement.

     

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ARTICLE
4
 TERMINATION

 

		4.1	Termination

 

This
Agreement shall terminate: (i) by a written instrument executed by each of the parties; (ii) in the event that the Arrangement
Agreement is terminated in accordance with its terms; (iii) on the Effective Time, or (iv) it being determined (by mutual agreement
of Torchlight and META) that the Transaction Shareholder Approval is not required.

 

		4.2	Effect
of Termination

 

If
this Agreement is terminated in accordance with this Article 4, the provisions of this Agreement will become void in relation
to such Shareholder and Torchlight and no such party shall have liability to such other party in respect of whom this Agreement
has been terminated, except in respect of a wilful, intentional or material breach of the representations, warranties, obligations,
terms or conditions of this Agreement which occurred prior to such termination in which case the non-breaching party to this Agreement
shall be entitled to pursue any and all remedies at law or equity which may be available to it.

 

ARTICLE
5
 GENERAL

 

		5.1	Fiduciary
Obligations

 

Torchlight
agrees and acknowledges that each Shareholder is bound hereunder solely in his, her or its capacity as a securityholder of META
and that the provisions of this Agreement shall not be deemed or interpreted to bind the Shareholder or any of its directors,
officers or principal shareholders in his or her capacity as a director or officer of META or any of META’s subsidiaries.
For the avoidance of doubt, nothing in this Agreement shall limit or restrict any party from properly fulfilling his or her fiduciary
duties as a director or officer of META.

 

		5.2	Further
Assurances

 

Each
Shareholder will, from time to time, execute and deliver all such further documents and instruments and do all such acts and things
as Torchlight may reasonably require to effectively carry out or better evidence or perfect the full intent of the parties and
meaning of this Agreement.

 

		5.3	Survival
of Representations and Warranties

 

No
investigations made by or on behalf any party or any of its authorized agents at any time shall have the effect of waiving, diminishing
the scope of or otherwise affecting any representation, warranty or covenant made by any other party herein or pursuant hereto.

     

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		5.4	Disclosure

 

No
press release or other disclosure (public or otherwise) with respect to the existence or details of this Agreement or the Arrangement
shall be made by a Shareholder without the prior written consent of Torchlight, except to the extent required by applicable law.
Each Shareholder hereby consents to the disclosure of the substance of this Agreement in any press release by Torchlight and to
the filing of this Agreement as an exhibit to any filing by Torchlight with the United States Securities and Exchange Commission.

 

		5.5	Assignment

 

Subject
to prior written notice to the Shareholders, Torchlight may assign all or part of its rights under this Agreement to an Affiliate
of Torchlight. Other then as expressly contemplated by Section 2.2(a), this Agreement shall not be otherwise assignable by a Shareholder
without the prior written consent of Torchlight, which consent may not be unreasonably withheld.

 

		5.6	Time

 

Time
shall be of the essence of this Agreement.

 

		5.7	Governing
Law

 

This
Agreement will be governed by, and interpreted and enforced in accordance with, the laws in force in the Province of Ontario (excluding
any rule or principle of the conflict of laws which might refer such interpretation to the laws of another jurisdiction) and the
federal laws of Canada applicable therein. Each party hereto irrevocably submits to the non-exclusive jurisdiction of the courts
of Ontario with respect to any matter arising hereunder or related hereto. The parties to this Agreement hereby irrevocably and
unconditionally waive any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or
the matters contemplated hereby in the courts of the Province of Ontario and hereby further irrevocably and unconditionally waive
and agree not to plead or claim in any such court that any such action, suit or proceeding so brought has been brought in an inconvenient
forum. This Section 5.8 shall survive the termination of this Agreement.

 

		5.8	Entire
Agreement

 

This
Agreement, including the appendices hereto constitutes the entire agreement between the parties pertaining to the subject matter
hereof. There are no representations, warranties, conditions, undertakings, commitments, other agreements or acknowledgements,
whether direct or collateral, express or implied, that form part of or affect this Agreement, or which induced any party hereto
to enter into this Agreement or on which reliance is placed by any party hereto, except as specifically set forth in this Agreement
..

 

		5.9	Amendments

 

This
Agreement may be amended, modified or supplemented only by a written agreement signed by all of the parties hereto.

     

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		5.10	Severability

 

If
any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable
manner in order that the terms of this Agreement remain as originally contemplated to the fullest extent possible.

 

		5.11	Notices

 

		(a)	Method
                                         of Delivery. Any notice, demand or other communication (in this Section, a “notice”)
                                         required or permitted to be given or made hereunder shall be in writing and shall be
                                         sufficiently given or made if:

 

		(i)	sent
                                         by electronic means of sending messages (in this Section, “Electronic Transmission”),
                                         by either facsimile transmission (if specified below) or e-mail, during normal business
                                         hours on a Business Day, but notice by Electronic Transmission shall only be sufficient
                                         if the notice includes or is accompanied by the sender’s name and facsimile number
                                         or e-mail address as applicable, the date and time of transmission, and if sent by facsimile
                                         transmission the name and telephone number of a Person to contact in the event of facsimile
                                         transmission problems or if sent by e-mail acknowledgement that the transmission is transmitted
                                         to the sender by the recipient or the recipient’s electronic system; or

 

		(ii)	delivered
                                         in person in a sealed package entitled Personal and Confidential addressed to the recipient
                                         during normal business hours on a Business Day and left with a receptionist or other
                                         responsible employee of the recipient, who is required to provide written acknowledgement
                                         of receipt, at the applicable address set forth below;

 

		a.	in
                                         the case of a notice to any Shareholder, to such Shareholder at the address indicated
                                         opposite to the name of the Shareholder in Appendix “A”; and

 

		b.	in
                                         the case of a notice to Torchlight, addressed to it at:

 

Torchlight
Energy Resources, Inc.

5700
W. Plano Parkway, Suite 3600

Plano TX 75093

 

With
a copy (which shall not constitute notice) to:

 

Stikeman
Elliott LLP

Suite
1700, 666 Burrard Street

Vancouver,
British Columbia V6C 2X8

 

and

 

K&L
Gates LLP

1
Park Plaza, Twelfth Floor

Irvine,
CA 92679

     

    - 10 - 

    

		(a)	Deemed
                                         Delivery. Each notice sent in accordance with this Section shall be deemed to have
                                         been received:

 

		(i)	in
                                         the case of personal delivery, if delivered before 5:00 p.m., on the day it was
                                         delivered; otherwise, on the first Business Day thereafter; or

 

		(ii)	in
                                         the case of Electronic Transmission, on the same day that it was sent if sent on a Business
                                         Day and the electronic acknowledgement of delivery is received by the sender before 5:00 p.m.
                                         (recipient’s time) on such day, and otherwise on the first Business Day thereafter.

 

Any
party hereto may change its address for notice by written notice delivered to the other parties hereto.

 

		5.12	Specific
Performance and other Equitable Rights

 

It
is recognized and acknowledged that a breach by any party of any material obligations contained in this Agreement will cause the
other party to sustain injury for which it would not have an adequate remedy at law for money damages. Accordingly, in the event
of any such breach, any aggrieved party shall be entitled to the remedy of specific performance of such obligations and interlocutory,
preliminary and permanent injunctive and other equitable relief in addition to any other remedy to which it may be entitled, at
law or in equity, and each Shareholder will waive, in any action for specific performance, interlocutory, preliminary and permanent
injunctive relief and/or any other equitable relief, the defence of adequacy of a remedy at law and any requirement for the securing
or posting of any bond in connection with the obtaining of any such relief.

 

		5.13	Expenses

 

Each
of the parties shall pay its respective legal, financial advisory and accounting costs and expenses incurred in connection with
the preparation, execution and delivery of this Agreement and all documents and instruments executed or prepared pursuant hereto
and any other related costs and expenses whatsoever and howsoever incurred.

 

		5.14	Counterparts

 

This
Agreement may be executed in any number of counterparts. Each executed counterpart will be deemed to be an original. All executed
counterparts taken together will constitute one agreement.

 

To
evidence the fact that a party hereto has executed this Agreement, such party may send a copy of its executed counterpart to the
other parties hereto by Electronic Transmission and if sent by email, in Portable Document File (PDF) format. That party will
be deemed to have executed this Agreement on the date it sent such Electronic Transmission.

     

    - 11 - 

    

		5.15	Independent
Legal Advice

 

Each
Shareholder acknowledges that:

 

		(a)	the
                                         Shareholder has read this Agreement in its entirety, understands this Agreement and agrees
                                         to be bound by its terms and conditions;

 

		(b)	the
                                         Shareholder has been advised to seek independent legal advice with respect to the Shareholder
                                         executing and delivering this Agreement and has received such advice or has, without
                                         undue influence, elected to waive the benefit of any such advice; and

 

		(c)	the
                                         Shareholder is entering into this Agreement voluntarily.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK.

SIGNATURE PAGES FOLLOW.]

     

     

    

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

 

	 	Per:	 
	 	Name:  	 
	 	Title:	 

 

Signature
Page to Voting Support Agreement – Project Vision

     

     

    

	 	TORCHLIGHT ENERGY RESOURCES, INC.

 

	 	Per:	 
	 	Name:  	 
	 	Title:	 

 

Signature
Page to Voting Support Agreement – Project Vision

     

     

    

APPENDIX “A”

 

Subject
Securities

     

     

    

APPENDIX
“B”

 

Arrangement
Agreement

 

See
attached.Exhibit 4.3

 

EXECUTION
VERSION

 

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

 

KONA
GOLD BEVERAGE, INC. 

 

Secured
Convertible Debenture

 

	Issuance
    Date:  November 30, 2020	Original
    Principal Amount: $100,000
	No.
    KGKG – 2 1-1	 

 

FOR
VALUE RECEIVED, KONA GOLD BEVERAGE, INC., a Delaware corporation (formerly known as Kona Gold Solutions, Inc.) (the “Company”),
hereby promises to pay to the order of YAII PN, LTD. or registered assigns (the “Holder”) the amount set out
above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise,
the “Principal”) when due, on the Maturity Date (as defined below), acceleration, redemption or otherwise (in
each case in accordance with the terms hereof) and to pay interest (“Interest”) on any outstanding Principal
at the applicable Interest Rate from the date set out above as the Issuance Date (the “Issuance Date”) until
the same becomes due and payable, whether upon the Maturity Date, acceleration, conversion, redemption or otherwise (in each case
in accordance with the terms hereof). This Convertible Debenture (including all Convertible Debentures issued in exchange, transfer
or replacement hereof, this “Debenture”) is issued pursuant to the Securities Purchase Agreement. Certain capitalized
terms used herein are defined in Section 17.

 

(1)
GENERAL TERMS

 

(a)
Payment of Principal. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding
Principal and accrued and unpaid Interest. The “Maturity Date” shall be May 30, 2021, as may be extended at
the option of the Holder (i) in the event that, and for so long as, an Event of Default (as defined below) shall have occurred
and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) or any event shall have occurred and be
continuing on the Maturity Date (as may be extended pursuant to this Section 1) that with the passage of time and the failure
to cure would result in an Event of Default. Other than as specifically permitted by this Debenture, the Company may not prepay
or redeem any portion of the outstanding Principal without the prior written consent of the Holder.

 

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(b)
Interest. Interest shall accrue on the outstanding principal balance hereof at a flat rate equal to 10% per 182.5 calendar
day period (“Interest Rate”). Interest hereunder shall be paid on the Maturity Date (or sooner if upon conversion
or acceleration by the Holder as provided herein) to the Holder or its assignee in whose name this Debenture is registered on
the records of the Company regarding registration and transfers of Debentures at the option of the Company in cash, or, provided
that the Equity Conditions are then satisfied converted into Common Stock at the Market Conversion Price on the Trading Day immediately
prior to the date paid.

 

(c)
Security and Guaranty. This Debenture is secured by (i) a security interest in all of the assets of the Company and of
each of the Company’s subsidiaries pursuant to the Security Agreement by and among the Company, its wholly owned subsidiaries
and the Investor dated May 14, 2020 (all such security agreements shall be referred to as the “Security Agreement”)
and (ii) subject to a global guarantee pursuant to the Global Guaranty by and among each of the Company’s wholly owned subsidiaries
and the Investor dated May 14, 2020 (the “Guaranty” and collectively with the Security Agreement, the “Security
Documents”).

 

(2)
EVENTS OF DEFAULT. 

 

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

 

(i)
the Company’s failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this
Debenture (including, without limitation, the Company’s failure to pay any redemption payments or amounts hereunder) or
any other Transaction Document;

 

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

 

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(iii)
The Company or any subsidiary of the Company shall default in any of its obligations under any other debenture or any mortgage,
credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued,
or by which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or
factoring arrangement of the Company or any subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness
now exists or shall hereafter be created and such default shall result in such indebtedness becoming or being declared due and
payable prior to the date on which it would otherwise become due and payable;

 

(iv)
If the Common Stock is quoted or listed for trading on the following and it ceases to be so quoted or listed for trading and shall
not again be quoted or listed for trading on the OTC Markets’ OTCQB® Venture Market (the “Primary
Market”) within 5 Trading Days of such delisting;

 

(v)
The Company or any subsidiary of the Company shall be a party to any Change of Control Transaction (as defined in Section 17)
unless in connection with such Change of Control Transaction this Debenture is retired;

 

(vi)
the Company’s (A) failure to cure a Conversion Failure by delivery of the required number of shares of Common Stock within
3 Business Days after the applicable Conversion Failure or (B) notice, written or oral, to any holder of the Debenture, including
by way of public announcement, at any time, of its intention not to comply with a request for conversion of the Debenture into
shares of Common Stock that is tendered in accordance with the provisions of the Debentures, other than pursuant to Section 4(e);

 

(vii)
The Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined herein) within 3 Business
Days after such payment is due;

 

(viii)
The Company shall fail to observe or perform any other covenant, agreement or warranty contained in, or otherwise commit any breach
or default of any provision of this Debenture (except as may be covered by Section 2(a)(i) through 2(a)(vii) hereof) or any Transaction
Documents (as defined in Section 17) which is not cured within the time prescribed.

 

(ix)
any Event of Default occurs with respect to any Transaction Document.

 

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(b)
During the time that any portion of this Debenture is outstanding, if any Event of Default has occurred, the full unpaid Principal
amount of this Debenture, together with interest and other amounts owing in respect thereof, to the date of acceleration shall
become at the Holder’s election, immediately due and payable in cash; provided, however, the Holder may request
(but shall have no obligation to request) payment of such amounts in Common Stock of the Company. If an Event of Default occurs
and for so long as such Event of Default remains uncured, the Interest Rate on this Debenture shall immediately become 15% per
annum and shall remain at such increased interest rate until the applicable Event of Default is cured. Furthermore, in addition
to any other remedies, the Holder shall have the right (but not the obligation) to convert this Debenture at any time after (x)
an Event of Default at the Market Conversion Price or (y) the Maturity Date at the Market Conversion Price. The Holder need not
provide and the Company hereby waives any presentment, demand, protest or other notice of any kind, (other than required notice
of conversion) and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and
remedies hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled
by Holder at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default
or impair any right consequent thereon.

 

(3)
COMPANY REDEMPTION.

 

(a)
Company’s Cash Redemption. The Company at its option shall have the right to redeem (a “Redemption”),
in part or in whole, outstanding Principal and Interest under this Debenture prior to the Maturity Date provided that as of the
date of the Holder’s receipt of a Redemption Notice (as defined herein) (i) the VWAP of the Company’s Common Stock
is less than the Fixed Conversion Price and (ii) there is no Equity Conditions Failure. The Company shall pay an amount equal
to the principal amount being redeemed plus a redemption premium (“Redemption Premium”) equal to 5% of the
outstanding Principal Amount being redeemed plus outstanding and accrued Interest thereon if such Redemption occurs within 30
calendar days from the date hereof, thereafter the Redemption Premium shall be 10%. In order to make a Redemption pursuant to
this Section, the Company shall first provide 15 business days advanced written notice to the Holder of its intention to make
a redemption (the “Redemption Notice”) setting forth the amount of Principal and Interest it desires to redeem
plus the applicable Redemption Premium (the “Redemption Amount”). After receipt of the Redemption Notice the
Holder shall have 15 Business Days to elect to convert all or any portion of this Debenture, subject to the limitations set forth
in Section 4(e). On the 16th Business Day after the Redemption Notice, the Company shall deliver to the Holder via
wire transfer of immediately available funds the Redemption Amount with respect to the Principal Amount and Interest redeemed
after giving effect to conversions by the Holder effected during the 15 Business Day period.

 

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

 

(a)
Conversion Right. Subject to the provisions of Section 4(f), at any time or times on or after the Maturity Date and notwithstanding
any pending Company Redemption, the Holder shall be entitled to convert at its option any portion of the outstanding and unpaid
Conversion Amount (as defined below) into fully paid and nonassessable shares of Common Stock in accordance with Section 4(e),
at the lower of the Fixed Conversion Price then in effect or the Market Conversion Price except as provided for in Section 2(b).
The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this Section 4(a) shall be
determined by dividing (x) such Conversion Amount by (y) the Fixed Conversion Price or (z) the Market Conversion Price, as applicable
(the “Conversion Rate”). The Company shall not issue any fraction of a share of Common Stock upon any conversion.
If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of
a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp and similar taxes that
may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount.

 

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

 

(c)
“Fixed Conversion Price” means, as of any Conversion Date (as defined below) or other date of determination,
$0.05, subject to adjustment as provided herein. All such determinations to be appropriately adjusted for any stock split,
stock dividend, stock combination or other similar transaction.

 

(d)
“Market Conversion Price” means, as of any Conversion Date (as defined below) or other date of determination,
80% of the lowest daily VWAP of the Company’s Common Stock during the 15 Trading Days immediately preceding the Conversion
Date. All such determinations to be appropriately adjusted for any stock split, stock dividend, stock combination or other similar
transaction.

 

(e)
Mechanics of Conversion.

 

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

 

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

 

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

 

(f)
Limitations on Conversions.

 

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

 

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(g)
Other Provisions.

 

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

 

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

 

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

 

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

 

(5)
Adjustments to the Fixed Conversion Price.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(vii)
Record Date. If the Company takes a record of the holders of Common Stock for the purpose of entitling them (A) to receive
a dividend or other distribution payable in Common Stock, Options or in Convertible Securities or (B) to subscribe for or purchase
Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the
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.

 

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

 

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

 

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

 

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

 

    11

     

    

 

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

 

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

 

    12

     

    

 

(6)
REISSUANCE OF THIS DEBENTURE.

 

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

 

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

 

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

 

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

 

    13

     

    

 

(7)
NOTICES. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered upon: (i) receipt, when delivered personally, (ii) 1 Business
Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the
party to receive the same, or (iii) receipt, when sent by electronic mail (provided that the electronic mail transmission is not
returned in error or the sender is not otherwise notified of any error in transmission. The addresses and email addresses for
such communications shall be:

 

	If
    to the Company, to:	Kona
    Gold Beverage, Inc.
	 	746
    North Drive STE A
	 	Melbourne,
    FL 32934
	 	Attention:
Robert Clark 

        Telephone:
        844-714-2224

	 	Email:
         robert@konagoldhemp.com
	 	 
	With
a copy to: 

        (which
shall not constitute Notice)
	Clark
Hill LLP 

        1055
West Seventh Street – 24th Floor 

        Los
        Angeles, CA 90017

	 	Attention:
     Randolf Katz
	 	Telephone:
    213-714-5310
	 	Email:
    rkatz@clarkhill.com

 

	If
    to the Holder:	YAII
PN, Ltd. 

        c/o
        Yorkville Advisors Global, LP

	 	1012
    Springfield Avenue
	 	Mountainside,
    NJ 07092
	 	Attention:
Mark Angelo 

        Telephone:
        (201) 536-5114

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

or
at such other address and/or electronic email address and/or to the attention of such other person as the recipient party has
specified by written notice given to each other party 3 Business Days prior to the effectiveness of such change. Written confirmation
of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically
generated by the sender’s computer containing the time, date, recipient’s electronic mail address and the text of
such electronic mail or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of
personal service, receipt by electronic mail or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

    14

     

    

 

(8)
Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligations of the Company, which
are absolute and unconditional, to pay the principal of, interest and other charges (if any) on, this Debenture at the time, place,
and rate, and in the coin or currency, herein prescribed. This Debenture is a direct obligation of the Company. As long as this
Debenture is outstanding, the Company shall not and shall cause their subsidiaries not to, without the consent of the Holder,
(i) amend its certificate of incorporation, bylaws or other charter documents so as to adversely affect any rights of the Holder
(which shall include combining (by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares);
(ii) repay, repurchase or offer to repay, repurchase or otherwise acquire shares of its Common Stock or other equity securities
other than as to the Underlying Shares to the extent permitted or required under the Transaction Documents; or (iii) enter into
any agreement with respect to any of the foregoing.

 

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

 

(10)
No indebtedness of the Company is senior to this Debenture in right of payment, whether with respect to interest, damages or upon
liquidation or dissolution or otherwise. Without the Holder’s consent, the Company will not and will not permit any of their
subsidiaries to, directly or indirectly, enter into, create, incur, assume or suffer to exist any indebtedness 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
there from that is senior in any respect to the obligations of the Company under this Debenture.

 

(11)
This Debenture shall be governed by and construed in accordance with the laws of the State of New York, without giving effect
to conflicts of laws thereof. Each of the parties consents to the jurisdiction of the Supreme Court of the State of New York sitting
in the Borough of Manhattan, New York and the U.S. District Court for the Southern District of New York sitting in the Borough
of Manhattan, New York in connection with any dispute arising under this Debenture and hereby waives, to the maximum extent permitted
by law, any objection, including any objection based on forum non conveniens to the bringing of any such proceeding in such jurisdictions.

 

(12)
If the Company fails to strictly comply with the terms of this Debenture, then the Company shall reimburse the Holder promptly
for all fees, costs and expenses, including, without limitation, attorneys’ fees and expenses incurred by the Holder in
any action in connection with this Debenture, including, without limitation, those incurred: (i) during any workout, attempted
workout, and/or in connection with the rendering of legal advice as to the Holder’s rights, remedies and obligations, (ii)
collecting any sums which become due to the Holder, (iii) defending or prosecuting any proceeding or any counterclaim to any proceeding
or appeal; or (iv) the protection, preservation or enforcement of any rights or remedies of the Holder.

 

(13)
Any waiver by the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Holder to insist
upon strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver or deprive that
party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture. Any waiver must
be in writing.

 

    15

     

    

 

(14)
If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect,
and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons
and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable
laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted
rate of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Debenture as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this
indenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted
to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

(15)
Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day.

 

(16)
THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

 

(17)
CERTAIN DEFINITIONS For purposes of this Debenture, the following terms shall have the following meanings:

 

(a)
“Approved Stock Plan” means a stock option plan that has been approved by the Board of Directors of the Company,
pursuant to which the Company’s securities may be issued only to any employee, officer, or director or third party service
providers in the normal course of business, for services provided to the Company.

 

(b)
“Bloomberg” means Bloomberg Financial Markets.

 

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

 

(d)
“Change of Control Transaction” means the occurrence of (a) an acquisition after the date hereof by an individual
or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control
(whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 50%
of the voting securities of the Company (except that the acquisition of voting securities by the Holder or any other current holder
of convertible securities of the Company shall not constitute a Change of Control Transaction for purposes hereof), (b) a replacement
at one time or over time of more than one-half of the members of the board of directors of the Company which is not approved by
a majority of those individuals who are members of the board of directors on the date hereof (or by those individuals who are
serving as members of the board of directors on any date whose nomination to the board of directors was approved by a majority
of the members of the board of directors who are members on the date hereof), (c) the merger, consolidation or sale of 50% or
more of the assets of the Company or any subsidiary of the Company in one or a series of related transactions with or into another
entity, or (d) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing
for any of the events set forth above in (a), (b) or (c).

 

    16

     

    

 

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

 

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

 

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

 

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

 

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

 

(j)
“Equity Conditions Failure” means that on any applicable date the Equity Conditions have not been satisfied
(or waived in writing by the Holder).

 

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

 

    17

     

    

 

(l)
“Excluded Securities” means, (a) shares issued or deemed to have been issued by the Company pursuant to an
Approved Stock Plan and (b) the shares of Common Stock issued or deemed to be issued by the Company upon conversion of this
Debenture.

 

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

 

(n)
“Original Issue Date” means the date of the first issuance of this Debenture regardless of the number of transfers
and regardless of the number of instruments, which may be issued to evidence such Debenture.

 

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

 

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

 

(q)
“Securities Purchase Agreement” means the Securities Purchase Agreement dated the date hereof by and among
the Company and the Holder.

 

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

 

(s)
“Transaction Documents” means the Securities Purchase Agreement or any other agreement delivered in connection
with the Securities Purchase Agreement, including, without limitation, the Security Documents and the Irrevocable Transfer Agent
Instructions.

 

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

 

(u)
“VWAP” means, for any security as of any date, the daily dollar volume-weighted average price for such security
as reported by Bloomberg, LP through its “Historical Price Table Screen (HP)” with Market: Weighted Avg function selected,
or, if no dollar volume-weighted average price is reported for such security by Bloomberg, the average of the highest closing
bid price and the lowest closing ask price of any of the market makers for such security as reported in the "pink sheets"
by OTC Markets Group Inc.

 

 

[Signature
Page Follows]

 

    18

     

    

 

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

 

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

 

    19

     

    

 

EXHIBIT
I

CONVERSION NOTICE

 

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

 

	TO:
    

 

The
undersigned hereby irrevocably elects to convert $ of the principal amount of Debenture No. KGKG-2 1-1 into Shares of Common Stock
of KONA GOLD BEVERAGE, INC., according to the conditions stated therein, as of the Conversion Date written below.

 

	Conversion
    Date:	                                                                                 
	Conversion
    Amount to be converted:	$                                                                               
	Conversion
    Price:	$                                                                               
	Number
    of shares of Common Stock to be issued:	                                                                                 
	Amount
    of Debenture Unconverted:	$          
	 	
	 	 
	Please
    issue the shares of Common Stock in the following name and to the following address:
	Issue
    to:	 

         

         

         

         

         

         

         

         

	 	 
	Authorized
    Signature:	                                                                               
	Name:	                                                                               
	Title:	                                                                               
	Broker
    DTC Participant Code:	 
	Account
    Number:	 

 

    20

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