Document:

Exhibit 10.3

 

EXECUTION VERSION

 

AMENDMENT NO. 1 TO

FORBEARANCE AGREEMENT

 

This AMENDMENT NO.
1 TO FORBEARANCE AGREEMENT (this “Amendment”) dated as of July 8, 2016 (the “Effective Date”)
is entered into by Electronic Cigarettes International Group, Ltd. (the “Borrower”), and Calm Waters Partnership
(the “Lender”).

 

Recitals

 

WHEREAS, on September
30, 2015 the Borrower and Lender entered into that certain Forbearance Agreement (the “Forbearance Agreement”);

 

WHEREAS, the Borrower
and Lender desire that the Forbearance Agreement be amended to reflect changes in certain provisions as specified below; and

 

NOW, THEREFORE, in
consideration of the foregoing, and of the mutual representations, warranties, covenants, and agreements herein contained, the
parties hereto agree as follows:

 

Agreement

 

Section
1.          Defined Terms. Unless otherwise indicated herein, all
terms which are capitalized but are not otherwise defined herein shall have the meaning ascribed to them in the Forbearance
Agreement.

 

Section
2.          Amendments to Forbearance Agreement.

 

a. Section 4(a)(a) is hereby
amended by deleting “March 31, 2017” and inserting “June 30, 2020” in place thereof.

 

b. Section 4(b) is hereby deleted
in its entirety and replaced with the following:

 

“(b)          During
the Forbearance Period, interest shall continue to accrue on the Obligations as set forth in the Credit Agreement and Notes, provided
that interest shall accrue on the September 2015 Interest Payment at a rate equal to 14% per annum until June 30, 2016. Beginning
July 1, 2016, interest shall accrue on the September 2015 Interest Payment at a rate equal to 4% per annum; provided, however,
that all amounts not paid when due hereunder shall bear interest (after as well as before judgment), payable on demand, at 6% per
annum. The September 2015 Interest Payment and interest accrued hereunder shall be paid to the Lender in cash on June 30, 2020.”

 

c. Section 8 is hereby amended
by deleting “780 North Water Street” and inserting “833 East Michigan Street, Suite 1800” in place thereof.

 

     

     

    

 

Section 3.          Conditions
Precedent. Lender shall not be obligated under this Amendment, and the terms of this Amendment shall not be binding on Lender,
unless and until: (i) Borrower has duly executed and delivered to Lender this Agreement, together with a copy of a resolution of
its board of directors approving the terms and execution and delivery of this Amendment; (ii) Lender has duly executed and delivered
to Borrower this Amendment; (c) Borrower has duly executed and delivered to Lender the amended and restated Forbearance Warrant,
substantially in the form attached hereto as Exhibit A; (d) the representations and warranties set forth in Section 5 of the Agreement
shall be true and correct on and as of the date hereof, with the same effect as though made on and as of such date, and Lender
shall have received a certificate, dated the Fifth Closing Date (as defined in the Credit Agreement), and signed by the chief financial
officer of the Borrower, confirming compliance with the conditions precedent set forth in this clause; and (e) all of the conditions
set forth in Section 4.05 to the Credit Agreement (as added by Amendment No. 5 thereto) have been satisfied.

 

Section 4.          Release.
Borrower forever releases and discharges Lender and its affiliates, officers, directors, shareholders, agents, representatives,
attorneys and employees (collectively, the “Released Parties”), and each of them, past and present, from any and all
actions, obligations, costs, damages, losses, claims, liabilities and demands of whatever kind and nature which Borrower has had,
now has or hereafter may have, arising from or by reason of or in any way connected with any transaction, matter, event or circumstances
which occurred or existed prior to the date hereof. It is understood and agreed that this release is not to be construed as an
admission of liability on the part of Lender or the Released Parties.

 

Section
5.          Ratifications; Inconsistent Provisions. Except as otherwise
expressly provided

herein, the Forbearance Agreement, is,
and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after
the Effective Date, all references in the Forbearance Agreement to “this Forbearance Agreement”, “hereto”,
“hereof”, “hereunder” or words of like import referring to the Forbearance Agreement shall mean the Forbearance
Agreement as amended by this Amendment. Notwithstanding the foregoing to the contrary, to the extent that there is any inconsistency
between the provisions of the Forbearance Agreement and this Amendment, the provisions of this Amendment shall control and be binding.

 

Section 6.          Counterparts.
This Amendment may be executed in any number of counterparts, all of which will constitute one and the same instruments and shall
become effective when one or more counterparts have been signed by each of the parties and delivered to the other party. Facsimile
or other electronic transmission of any signed original document shall be deemed the same as delivery of an original.

 

[The Remainder of this Page is Blank]

 

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IN WITNESS WHEREOF, the Company has caused
this Amendment to be executed as of the date first written above by its respective officers thereunto duly authorized.

 

	 	ELECTRONIC CIGARETTES
	 	INTERNATIONAL GROUP, LTD.
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	CALM WATERS PARTNERSHIP
	 	 	 
	 	By:	 
	 	Name:
	 	Title:Exhibit 10.4

 

EXECUTION VERSION

 

AMENDMENT No. 3

 

TO

 

REGISTRATION RIGHTS AGREEMENT

 

This AMENDMENT No.
3 TO REGISTRATION RIGHTS AGREEMENT (this “Amendment”), is made and entered into as of July 8, 2016, by and
among Electronic Cigarettes International Group, Ltd., a Nevada corporation, (the “Company”) and the holders
of registration rights under the Registration Rights Agreement (defined below) signatory hereto (each, a “Holder”
and collectively, the “Holders”).

 

RECITALS:

 

WHEREAS, on April 27,
2015, the Company entered into a Credit Agreement (as amended, the “Lead Lender Credit Agreement”), by and between
the Company and Calm Waters Partnership, a Wisconsin general partnership (the “Lead Lender”), pursuant to which
the Lead Lender provided the Company with a term loan upon the terms and conditions set forth in the Lead Lender Credit Agreement;

 

WHEREAS, on April 27,
2015, the Company entered into a Credit Agreement (as amended, the “Additional Lender Credit Agreement” and
together with the Lead Lender Credit Agreement, the “Credit Agreements”), by and among the Company and various
additional lenders party thereto (the “Additional Lenders” and together with the Lead Lender, the “Lenders”),
pursuant to which the Additional Lenders provided the Company with a term loan upon the terms and conditions set forth in the Additional
Lender Credit Agreement;

 

WHEREAS, as a condition
to extending the financing under the Credit Agreements, the Company granted the registration rights pursuant to that certain Registration
Rights Agreement, dated as of April 27, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Registration
Rights Agreement”);

 

WHEREAS, on June 26,
2015, pursuant to that certain Amendment to Registration Rights Agreement between the Company and certain holders of registration
rights signatory thereto, dated June 26, 2015, the parties amended the Registration Rights Agreement to clarify that the registration
rights granted pursuant to the Registration Rights Agreement apply to securities issued pursuant to the Credit Agreements as amended
or modified from time to time;

 

WHEREAS, on September
30, 2015, pursuant to that certain Amendment No. 2 to Registration Rights Agreement between the Company and certain holders of
registration rights signatory thereto, dated September 30, 2015, the parties further amended the Registration Rights Agreement
to provide that the Common Stock then issued and issuable upon exercise of those certain warrants to purchase shares of common
stock, par value $0.001 per share (the “Common Stock”), of the Company granted to the Lead Lender pursuant to
that certain Forbearance Agreement between the Company and the Lead Lender, dated September 30, 2015, shall be included within
the definition of Registrable Securities under the Registration Rights Agreement;

 

     

     

    

  

WHEREAS, the parties
hereto desire to further amend the Registration Rights Agreement to provide that the shares of Common Stock issuable to the Holders
in lieu of cash interest due to such Holders pursuant to the Credit Agreements shall be included within the definition of Registrable
Securities under the Registration Rights Agreement;

 

WHEREAS, Section 6(e)
of Registration Rights Agreement provides that the provisions of the Registration Rights Agreement may only be amended by a writing
signed by the Company and the Holders of 50% or more of the then outstanding Registrable Securities; and

 

WHEREAS, the Company
and the Holders party hereto, constituting Holders of 50% or more of the outstanding Registrable Securities, desire to amend the
Registration Rights Agreement on the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the foregoing premises, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties to this Amendment, each intending to be legally bound, hereby agree as follows:

 

1.          Definitions.
Capitalized terms used but not defined in this Amendment shall have the respective meanings ascribed to such terms in the Registration
Rights Agreement.

 

2.          Amendments
to the Registration Rights Agreement.

 

A. Section 1 of the
Registration Rights Agreement is hereby amended by adding the following definition:

 

“Interest Shares”
means shares of Common Stock issued to a Holder in lieu of cash interest due pursuant to the Credit Agreements.”

 

B. Section 1 of the
Registration Rights Agreement is hereby amended by deleting the definition of “Registrable Securities” in its entirety
and replacing it with the following:

 

“Registrable
Securities” means, as of any date of determination, (a) all Warrant Shares then issued and issuable upon exercise of
the Warrants, (b) all shares of Common Stock then issued and issuable upon exercise of the Forbearance Warrants, (c) all Interest
Shares issued to Holder(s) and (d) any securities issued or then issuable upon any stock split, dividend or other distribution,
recapitalization or similar event with respect to the foregoing; provided, however, that any such Registrable Securities
shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another
Registration Statement hereunder with respect thereto for so long as (a) a Registration Statement with respect to the sale of such
Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable Securities have been
disposed of by the Holder in accordance with such effective Registration Statement, (b) such Registrable Securities have been previously
sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or manner-of-sale restrictions
and without current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed,
delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and any securities issuable
upon exercise of which, or as a dividend upon which, such securities were issued or are issuable, were at no time held by any Affiliate
of the Company, and all Warrants are exercised by “cashless exercise” as provided in the Warrants), as reasonably determined
by the Company, upon the advice of counsel to the Company.”

 

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C. Section 6(g) of
the Registration Rights Agreement is hereby amended by deleting the last sentence thereof in its entirety and replacing it with
the following:

 

“Each Holder may assign
their respective rights hereunder in part or in whole to any person to whom the Warrant or Warrant Shares or Forbearance Warrants
or shares of Common Stock issuable upon exercise of Forbearance Warrants or Interest Shares are transferred.”

 

3.          Full
Force and Effect. Except as expressly modified by this Amendment, all of the terms, covenants, agreements, conditions and other
provisions of the Registration Rights Agreement shall remain in full force and effect in accordance with their respective terms.
As used in the Registration Rights Agreement, the terms “this Agreement”, herein, hereinafter, hereunder, hereto and
words of similar import shall mean and refer to, from and after the date hereof, unless the context otherwise requires, the Registration
Rights Agreement as amended by this Amendment.

 

4.          Governing
Law. This Amendment shall be construed in accordance with and governed by the laws of the State of New York, without giving
effect to its conflict of laws principles.

 

5.          Counterparts.
This Amendment may be executed in a number of counterparts, by facsimile, each of which shall be deemed to be an original as of
those whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Amendment shall
become binding when one or more of the counterparts hereof, individually or taken together, are signed by all the parties.

 

[Remainder of page
intentionally left blank; signature page follows]

 

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

 

	 	ELECTRONIC CIGARETTES 

INTERNATIONAL GROUP, LTD.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

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

 

	 	Name of Holder:	 	 
	 	 	 	 
	 	Signature of Authorized Signatory of Holder:	 	 
	 	 	 	 
	 	Name of Authorized Signatory:

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