SEC Contract Filing

Filing Date: 2021-08-27

Document Content:
<DOCUMENT>
<TYPE>EX-10.39
<SEQUENCE>5
<FILENAME>e3063_ex10-39.htm
<DESCRIPTION>EXHIBIT 10.39
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 10.39</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>REGISTRATION RIGHTS AGREEMENT</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>THIS REGISTRATION RIGHTS
AGREEMENT</B> (this &ldquo;<U>Agreement</U>&rdquo;), dated as of August 20, 2021 by and between <FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>KONA
GOLD BEVERAGE</B></FONT><B>, INC.,</B> a Delaware corporation&nbsp;(the &ldquo;<U>Company</U>&rdquo;), and <B>YA II PN, Ltd.</B>,<B>
</B>a Cayman Islands exempt limited partnership (the &ldquo;<U>Investor</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS:</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A.&#9;&nbsp;&nbsp;&nbsp;&nbsp;In connection with
the Securities Purchase Agreement by and between the parties hereto of even date herewith (the <B>&ldquo;</B><U>Securities Purchase
Agreement</U>&rdquo;), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase Agreement,
to issue and sell to the Investor up to $3,000,000 of secured convertible debentures (the &ldquo;<U>Convertible Debentures</U>&rdquo;),
which shall be convertible into shares of the Company&rsquo;s common stock, par value $0.0001 (the &ldquo;<U>Common Stock</U>&rdquo;)
(as converted, the &ldquo;<U>Conversion Shares</U>&rdquo;) and to grant to the Investor warrants (the &ldquo;<U>Warrants</U>&rdquo;)
to purchase up to 100,000,000 shares of Common Stock (as exercised, the &ldquo;<U>Warrant Shares</U>&rdquo;). Capitalized terms
not defined herein shall have the meaning ascribed to them in the Securities Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">B.&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To induce the Investors
to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, or any similar successor statute (collectively,
the &ldquo;<U>Securities Act</U>&rdquo;), and applicable state securities laws and other rights as provided for herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE,</B>
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Investors hereby agree as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>DEFINITIONS</U>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As used in this Agreement,
the following terms shall have the following meanings:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&ldquo;<U>Effectiveness Deadline</U>&rdquo; means, with respect to a Registration Statement filed hereunder, in the event
the Company is notified by the U.S. Securities and Exchange Commission (the &ldquo;<U>SEC</U>&rdquo;) that one of the Registration
Statements, as defined below, will not be reviewed or is no longer subject to further review and comments, the Effectiveness Deadline
as to such Registration Statement shall be the 5th calendar day following the date on which the Company is so notified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)<FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&ldquo;<U>Exch