Exhibit 10.4


 





WARRANT PURCHASE AGREEMENT


 


THIS WARRANT PURCHASE
AGREEMENT (this “Agreement”) is made as of May 10, 2016, by and between Turning Point Brands,
Inc., a Delaware corporation (“TPB”), and each holder of Warrants (as defined below) listed on the signature
pages hereto (each, a “Holder” and collectively, the “Holders”).


 


W I T N E S S E T H:


 


WHEREAS, the Holders
collectively own warrants (the “Warrants”) to purchase in the aggregate 11,000,000 common units (the “Common
Units”) of Intrepid Brands, LLC, a Delaware limited liability company and indirect subsidiary of TPB (“Intrepid”)
pursuant to that certain Warrant Agreement, dated as of January 21, 2014, by and among Intrepid and the holders of warrants thereunder
(the “Warrant Agreement”); and


 


WHEREAS, TPB proposes
to effect an initial public offering of its common stock (the “IPO”) pursuant to a registration statement on Form S-1
filed with the U.S. Securities and Exchange Commission (the “S-1”); and


 


WHEREAS, substantially
simultaneously with, but immediately following, the IPO, TPB wishes to purchase the Warrants from the Holders and the Holders wish
to sell the Warrants to TPB, for the consideration and upon the terms and conditions set forth herein (the “Warrant
Purchase”); and


 


WHEREAS, in accordance
with Section 7.1 of the Warrant Agreement, the board of managers of Intrepid has granted its prior written approval to the transfer
of Warrants contemplated hereby.


 


NOW THEREFORE, in consideration
of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties intending to be legally bound, do hereby agree as follows:


 


1.                 
Warrant Purchase. Substantially simultaneously with, but immediately following the IPO, each Holder shall
irrevocably sell, transfer, convey, assign and deliver to TPB, and TPB shall purchase and accept from such Holder, all of such
Holder’s right, title and interest in and to the Warrant set forth opposite such Holder’s name on Schedule 1
for the aggregate cash purchase price set forth opposite such Holder’s name on Schedule 1 (such purchase price being
equal to $0.40 per Common Unit subject to such Warrant and the amount payable pursuant to Schedule 1 to any Holder in respect
of such Holder’s Warrant is referred to herein as such Holder’s “Purchase Price”).


 


2.                 
Closing. The closing of the Warrant Purchase shall occur contemporaneously with the closing of the IPO (the
“Closing”) at the offices of Milbank, Tweed, Hadley & McCloy LLP, 28 Liberty Street, New York, New York
10005. At the Closing, TPB shall pay to each Holder such Holder’s Purchase Price by wire transfer of immediately available
funds to the account designated in writing by such Holder to TPB at least three business days prior to the date of such Closing,
and such Holder shall deliver to TPB at the Closing the certificate or certificates representing such Warrants together with an
instrument of transfer (substantially in the form attached to the Warrant Agreement) duly endorsed in blank.


 






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3.                 
Representations and Warranties.


 


3.1             
Representations and Warranties of Each Party. Each of TPB, on the one hand, and each of the Holders, on the
other hand, hereby represents and warrants to the other party that:


 


(i)                
such party has all necessary power and authority to execute and deliver this Agreement and to perform its obligations
hereunder and to consummate the transaction contemplated hereby;


 


(ii)              
this Agreement has been duly and validly executed and delivered by such party and constitutes a legal, valid and
binding obligation of such party enforceable against such party in accordance with its terms;


 


(iii)            
the execution, delivery and performance by such party of this Agreement and the consummation by such party of the
transactions contemplated hereby do not and will not (A) conflict with or violate any United States or non-United States statute,
law, ordinance, regulation, rule, code, executive order, injunction, judgment, decree or other order applicable to such party,
(B) other than the prior written consent of the board of managers of Intrepid to the transactions contemplated hereby, require
any consent, approval or authorization of, declaration, filing or registration with, or notice to, any person or entity, (C) result
in the creation of any encumbrance on any Warrants or (D) if such party is not a natural person, conflict with or result in a breach
of or constitute a default under any provision of such party’s governing documents; and


 


(iv)            
as of the date hereof, no material litigation, action or proceeding by or against such party is pending, or to the
knowledge of such party threatened in writing, which would affect the legality, validity or enforceability of this Agreement or
the consummation of the transactions contemplated hereby.


 


3.2             
Representations and Warranties of each Holder. Each Holder hereby represents and warrants to TPB that it owns
exclusively, beneficially and of record and has good, valid and marketable title to the Warrant set forth opposite such Holder’s
name on Schedule 1 free and clear of any security interest, lien, claim, pledge, proxy, option, right of first refusal,
agreement, voting restriction, limitation on disposition, charge, adverse claim of ownership or use or other encumbrance of any
kind and has the full right, power and authority to sell, transfer and deliver such Warrant, and such Holder does not own, directly
or indirectly, any warrants to purchase common units of Intrepid other than such Warrant.


 






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4.                 
Additional Agreements.


 


4.1             
No Sale or Transfer of Warrants. Each Holder covenants and agrees that, between the date hereof and the Closing,
such Holder shall not (a) exercise any Warrants or (b) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant
any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of
1934, as amended, and the rules and regulations of the Securities and Exchange Commission promulgated thereunder (each, a “Transfer”),
with respect to any Warrants or any securities convertible into, or exercisable, or exchangeable for, Warrants owned by him, her
or it; provided, however, that the such Holder may Transfer any Warrants to any of its affiliates that agrees in writing prior
to such Transfer to be bound by the obligations of the Holders under this Agreement.


 


4.2             
General Release. In consideration of such Holder’s Purchase Price, each Holder, on behalf of himself
or herself and each of his or her successors, executors, representatives, agents, estate, heirs, legatees, devisees, beneficiaries
and assigns, hereby forever releases, remises, acquits, satisfies, and discharges TPB (and any successor thereto) and its affiliates,
and the respective directors, officers, employees, partners, agents, advisors and representatives thereof, and the respective successors
and assigns of the foregoing (each, a “Releasee”), from any and all manner of actions, claims, causes of action,
suits, debts, dues, sums of money, accounts, reckonings, covenants, contracts, controversies, agreements, promises, damages, judgments,
executions, and demands whatsoever, in law or in equity (collectively, “Claims”), which the undersigned ever
had, now has, or which any successor or assign of the undersigned hereafter can, shall or may have, against any Releasee, for,
upon or by reason of any matter, cause or thing whatsoever, known or unknown, directly or indirectly, from the beginning of the
world to the closing of the IPO including, without limitation, Claims arising out of or related to any (i) breach or alleged breach
of fiduciary duty and claims in tort, and (ii) the Warrants and the Warrant Agreement; except for (x) the right to receive such
Holder’s Purchase Price under this Agreement, (y) the right of employees to receive accrued compensation and benefits to
which they are entitled from TPB, whether by written employment or bonus agreement or otherwise, and (z) any Claims arising out
of or relating to any actual fraud of a Releasee.


 


5.                 
Termination. In the event the S-1 is withdrawn by TPB for any reason, this Agreement shall automatically terminate
and become null and void without any further action by the parties.


 


6.                 
Miscellaneous.


 


6.1             
Further Assurances. TPB and each Holder will take such actions as may be reasonably required or desirable
to carry out the provisions of this Agreement.


 


6.2             
Successors and Assigns. This Agreement and the rights evidenced hereby shall be binding upon and shall inure
to the benefit of the parties hereto and the successors of TPB and the successors and permitted assigns of each Holder. Such successors
and/or permitted assigns of each Holder shall be deemed to be a Holder for all purposes hereunder.


 






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6.3             
Governing Law; Jurisdiction; No Trial by Jury. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without giving effect to the State of New York’s conflict of law principles to the
extent such principles are not mandatorily applicable by statute and would require or permit the application of the laws of another
jurisdiction. Each of the parties hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive
jurisdiction of any New York State court or Federal court of the United States sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this Agreement and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims or causes of action (whether in contract, tort or otherwise) in respect
of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in
such Federal court. EACH PARTY HERETO HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY SUCH ACTION OR PROCEEDING. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT,
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH
PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.3.


 


6.4             
Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and
shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by telecopy or e-mail or by registered
or certified mail (postage prepaid, return receipt requested) to the respective parties at their addresses as specified on the
signature pages of this Agreement.


 


6.5             
Amendments and Waivers. Except as otherwise provided herein, this Agreement may only be amended, modified
or supplemented by an agreement in writing signed by each party hereto. No waiver by TPB or any Holder of any of the provisions
hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall
operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver,
whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay
in exercising, any rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.


 


6.6             
No Third-Party Beneficiaries. This Agreement is for the sole benefit of TPB and the Holders and their respective
successors and, in the case of each Holder, permitted assigns and nothing herein, express or implied, is intended to or shall confer
upon any other natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,
governmental authority or other entity any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason
of this Agreement.


 






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6.7             
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law,
such provision shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision
were so excluded and shall be enforceable in accordance with its terms.


 


6.8             
Headings. The headings contained in this Agreement are for purposes of convenience only and shall not affect
the meaning or interpretation of this Agreement.


 


6.9             
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but
all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile,
e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed
copy of this Agreement.


 


6.10         
Entire Agreement. This Agreement and the documents referred to herein constitute the entire agreement among
the parties with respect to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral,
among the parties with respect to the subject matter hereof.


 


[Signature page follows]


 






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


 





	 	TURNING POINT BRANDS, INC. 
	 	 	 
	 	By: 	James Dobbins	 
	 	Name:	James Dobbins
	 	Title:	Senior Vice President, General Counsel and Secretary
	 	 	 
	 	Address for notice:
	 	 	 
	 	Turning Point Brands, Inc.
 5201 Interchange Way
 Louisville, Kentucky 40229
 Attention: James Dobbins
 Telephone: (502) 778-4421
 Email: jdobbins@natcinc.net 
	 	 	 









 


 


[Signature Page to Warrant Purchase Agreement]


 











    	 



    	 



    

 





	 	Helms Management
Corp.
	 	 	 
	 	By:	/s/ Thomas F. Helms, Jr.	 
	 	Name:	Thomas F. Helms, Jr.
	 	Title:	President
	 	 	 
	 	Address for notice:
	 	 	 
	 	                                                  





                                                  


                                                  

Attention:                                                   


Telephone:                                                   


Facsimile:                                                   


Email:                                                   

	 	 	 



 


 






    	 



    	 



    

 


	 	Lawrence Wexler
	 	 	 
	 	/s/ Lawrence Wexler	 
	 	(Signature)	 
	 	 	 
	 	Address for notice:
	 	 	 
	 	393 Carter St

                    New Canaan CT 06840

                    Attention: L. Wexler

                    Telephone: 502-439-1516

                    Facsimile: _____________________

                    Email: lwexler@tpbi.com

	 	 	 



 





 





    	 



    	 



    

 





	 	Michael
G. Terry
	 	 	 
	 	/s/ Michael G. Terry	 
	 	(Signature)	 
	 	 	 
	 	Address for notice:
	 	 	 
	 	9501 Gerdardia Lane

                    Prospect, KY 40059

                    Attention:
                    Michael Terry





Telephone:
502-681-2043


Facsimile:                                                   





Email: mterry522@aol.com

	 	 	 



  






    	 



    	 



    

 





	 	Graham A.
Purdy
	 	 	 
	 	/s/ Graham A. Purdy	 
	 	(Signature)	 
	 	 	 
	 	Address for notice:
	 	 	 
	 	


5201 Interchange Way

Louisville, KY 40229


Attention: Graham Purdy





Telephone:
913-485-6393


Facsimile:                                                   





Email: gpurdy@nationaltobacco.com

	 	 	 



 


 






    	 



    	 



    

 





	 	James Dobbins
	 	 	 
	 	/s/ James Dobbins	 
	 	(Signature)	 
	 	 	 
	 	Address for notice:
	 	 	 
	 	


1006 Monmouth Avenue

Durham, NC 27701


Attention: James Dobbins





Telephone:
502-774-9270


Facsimile: 502-774-9223





Email: jdobbins@natcinc.net


	 	 	 



 





 






    	 



    	 



    

 





	 	FORT GEORGE INVESTMENTS, LLC
	 	 
	 	By: Corbin Capital Partners Management, LLC
	 	 	 
	 	By:	/s/ Steven Carlino	 
	 	Name:	Steven Carlino

	 	Title:	CFO
	 	 	

         

	 	Address for notice:
	 	 	

         

	 	


590 Madison Avenue

31st Floor

New York, NY 10022


Attention:                                                   





Telephone:                                                   





Facsimile:                                                   





Email:                                                   



	 	 	 



 





 




 



    	 



    	 



    

 








	 	Standard
General Focus Fund L.P.
	 	 	 
	 	By:	/s/ Soohyung Kim	 
	 	Name:	Soohyung Kim
	 	Title:	Managing Partner
	 	 	 
	 	Address for notice:
	 	 	 
	 	Standard General

                    767 5th Ave, 12th Fl

                    New York, NY 10153


Attention:                                                   





Telephone: 212-257-4701





Facsimile:                                                   





Email:                                                   



	 	 	 



  






    	 



    	 



    

 


	 	Standard
General Master Fund L.P.
	 	 	 
	 	By:	/s/ Soohyung Kim	 
	 	Name:	Soohyung Kim
	 	Title:	Managing Partner
	 	 	 
	 	Address for notice:
	 	 	 
	 	Standard General

                    767 5th Ave, 12th Fl

                    New York, NY 10153


Attention:                                                   





Telephone: 212-257-4701





Facsimile:                                                   





Email:                                                   









 



 






    	 



    	 



    

 


Schedule 1


 


	Holder	Number of Common Units subject to Warrant	Holder’s Purchase Price ($.040 per Common Unit subject to Warrant)
	Helms Management Corp.	              1,984,598	$793,839.21
	Lawrence Wexler	                  180,000	$72,000.00
	Michael G. Terry	                    10,000	$4,000.00
	Graham A. Purdy	                    10,000	$4,000.00
	James Dobbins	                      5,000	$2,000.00
	Fort George Investments, LLC 	              2,836,125.56	$1,134,450.22
	Standard General Focus Fund L.P.	                    90,511.06	$36,204.42
	Standard General Master Fund L.P.	              4,491,290.89	$1,796,516.36