Document:

Exhibit 10.4

 

EXECUTION
VERSION

 

	DATED	2015

 

INTER-CREDITOR
DEED

 

Between

 

Electronic
Cigarettes International Group, Ltd 

(as Borrower)

 

and

 

The
persons named in Schedule 1 

(as Guarantors)

 

and

 

The
persons named in Schedule 2 

(as Senior Creditors)

 

and

 

The
persons named in Schedule 3 

(as Subordinated Creditors)

 

and

 

Miguel
Carlos Corral

(as
Junior Security Trustee)

 

	RPC	 
	Tower Bridge House	 
	St Katharine’s Way 

London	 
	E1W 1AA	Ref: SA01/GOD10.6

 

    	 

    	 

    

 

TABLE
OF CONTENTS

	 	 	 	 
	1.	DEFINITIONS
    AND INTERPRETATION	 	1
	2.	PRIORITIES	 	6
	3.	BORROWER
    AND GUARANTOR COVENANTS	 	8
	4.	SUBORDINATED
    CREDITORS AND JUNIOR SECURITY TRUSTEE COVENANTS	 	9
	5.	PERMITTED
    PAYMENTS	 	10
	6.	WAIVER
    AND AMENDMENTS OF DEBT DOCUMENTS	 	10
	7.	SUBORDINATION
    ON INSOLVENCY	 	11
	8.	TREATMENT
    OF DISTRIBUTIONS	 	12
	9.	PRESERVATION
    OF RIGHTS	 	13
	10.	CO-OPERATION
    BY BORROWER, THE GUARANTORS, THE SUBORDINATED CREDITORS AND THE JUNIOR SECURITY TRUSTEE	 	13
	11.	PRESERVATION
    OF SUBORDINATION	 	13
	12.	BOOK
    DEBTS, INSURANCE AND CUSTODY OF DOCUMENTS	 	15
	13.	SENIOR
    DEBT ENFORCEMENT	 	16
	14.	ENFORCEMENT
    BY THE SUBORDINATED CREDITORS AND/OR THE JUNIOR SECURITY TRUSTEE	 	16
	15.	INFORMATION
    BY SUBORDINATED CREDITOR	 	17
	16.	APPLICATION
    OF PROCEEDS	 	17
	17.	REFINANCING
    OF SENIOR DEBT	 	17
	18.	POWER
    OF ATTORNEY	 	18
	19.	EXPENSES	 	18
	20.	DURATION	 	20
	21.	RESTRICTIONS
    ON ASSIGNMENTS	 	20
	22.	BORROWER’S
    AND GUARANTOR’S ACKNOWLEDGEMENTS	 	21
	23.	ENDORSEMENT
    ON DEBT DOCUMENTS	 	21
	24.	REMEDIES,
    WAIVERS, AMENDMENTS AND CONSENTS	 	21
	25.	SEVERANCE	 	22
	26.	COUNTERPARTS	 	22
	27.	THIRD
    PARTY RIGHTS	 	23
	28.	PERPETUITY
    PERIOD	 	23
	29.	NOTICES	 	23
	30.	GOVERNING
    LAW AND JURISDICTION	 	24
	SCHEDULE
    1 - GUARANTORS	 	26
	SCHEDULE
    2 - SENIOR CREDITORS	 	27
	SCHEDULE
    3 - SUBORDINATED CREDITORS	 	28
	SCHEDULE
    4 - SENIOR DEBT DOCUMENTS	 	29
	SCHEDULE
    5 - JUNIOR DEBT DOCUMENTS	 	30

 

    	 

    	 

    

 

	THIS AGREEMENT is made on	2015

 

Between:

 

		(1)	ELECTRONIC
                                         CIGARETTES INTERNATIONAL GROUP, LTD., registered in the State of Nevada, USA under
                                         number C13461-2004 whose registered office is at 14200 Ironwood Drive, Grand Rapids,
                                         Michigan 49448, USA (Borrower).

 

		(2)	THE
                                         PERSONS whose details are set out at Schedule 1 (each a Guarantor and together
                                         the Guarantors).

 

		(3)	THE
                                         PERSONS whose details are set out at Schedule 2 (each a Senior Creditor and
                                         together the Senior Creditors).

 

		(4)	THE
                                         PERSONS whose details are set out at Schedule 3 (each a Subordinated Creditor
                                         and together the Subordinated Creditors).

 

		(5)	MIGUEL
                                         CARLOS CORRAL of 1 Sergeants Lane, Whitefield, M45 7TR as security agent and trustee
                                         for the Subordinated Creditors (Junior Security Trustee).

 

Background:

 

		(A)	The
                                         Senior Creditors have agreed to provide the Senior Debt, and the Subordinated Creditors
                                         have agreed to provide the Junior Debt, to the Borrower and/or the Guarantors (as applicable).
                                         The Junior Security Trustee acts as security agent and trustee for the Subordinated Creditors
                                         in respect of the Junior Security. The parties have agreed that the priority of their
                                         debts of the Creditors shall be as set out in this deed.

 

		(B)	The
                                         Borrower and the Guarantors have agreed to enter this deed to acknowledge its terms and
                                         to give certain covenants to the Creditors.

 

IT
IS AGREED as follows:

 

		1.	DEFINITIONS
                                         AND INTERPRETATION

 

		1.1	Definitions

 

The
following definitions apply in this deed.

 

Ancillary
Liabilities: in relation to the Senior Debt or the Junior Debt means:

 

		(a)	any
                                         refinancing, novation, refunding, restructuring, deferral or extension of any of those
                                         liabilities;

 

		(b)	any
                                         further advance which may be made under any agreement supplemental to the relevant facilities
                                         or credit agreement plus all interest, indemnities, fees and costs in connection therewith;

 

		(c)	any
                                         claim for damages or restitution in the event of rescission of any such liabilities or
                                         otherwise in connection with any relevant facilities or credit agreement;

 

		(d)	any
                                         claim against the Borrower and/or a Guarantor (and in relation to the Senior Debt, the
                                         Subordinated Creditors) flowing from any recovery by the Borrower and/or a Guarantor
                                         (and in relation to the Senior Debt, the Subordinated Creditor) of a payment or discharge
                                         in respect of those liabilities on the grounds of preference or otherwise; and

 

    	 	- 1 -	

    	 

    

 

		(e)	any
                                         amounts (including post-insolvency interest) which would be included in any of the above
                                         but for any discharge, non-provability, unenforceability or non-allowability of the same
                                         in any insolvency or other proceedings.

 

Business
Day: a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business.

 

Calm
Waters Credit Agreement: the credit agreement between (1) the Borrower and (2) Calm Waters Partnership dated on or about the
date of this deed.

 

Co-Investor
Credit Agreement: the credit agreement between (1) the Borrower, (2) Tiburon Opportunity Fund, L.P. as agent and (3) certain
other lenders signatory thereto dated on or about the date of this deed.

 

Creditors:
the Senior Creditors and the Subordinated Creditors (and the Junior Security Trustee acting as security agent and trustee
for the Subordinated Creditors) together, and Creditor means any of the Creditors.

 

Debt
Document: each of the Junior Debt Documents and the Senior Debt Documents.

 

Distressed
Disposal: a disposal of an asset of the Borrower or a Guarantor which is being effected as result of the enforcement of the
Senior Security and/or the Junior Security.

 

Enforcement
Date: the Business Day following the date on which a Creditor receives written notice from a Senior Creditor that a Senior
Creditor has taken action to:

 

		(a)	demand
                                         repayment, or payment, of any of the Liabilities secured by the Security constituted
                                         by any of its Security Documents;

 

		(b)	enforce
                                         any of the Security constituted by any of its Security Documents; or

 

		(c)	take
                                         possession of any asset subject to any of the Security constituted by any of its Security
                                         Documents.

 

FINBG:
FIN Branding Group, LLC, an Illinois corporation with number 03606309.

 

First
Variation Deed: the variation deed, dated 3 October 2014, between the parties to, and for the purpose of amending, the Share
Purchase Agreement.

 

HIAC:
Hardwire Interactive Acquisition Company, a Delaware corporation with number 5543781.

 

Insolvency:
in respect of any person means:

 

		(a)	that
                                         person’s bankruptcy, dissolution, liquidation, winding-up or administration, an
                                         application is made/or an interim order in respect of that person or that person entering, into
                                         any voluntary arrangement or composition with creditors;

 

		(b)	the
                                         appointment of a receiver or administrative receiver in respect of all or part of the
                                         person’s asset; and

 

		(c)	any
                                         event having a similar effect under the laws of any relevant jurisdiction, and the term
                                         Insolvent shall be interpreted accordingly.

 

    	 	- 2 -	

    	 

    

 

Junior
Debt: all Liabilities which are or may become payable or owing by the Borrower and/or the Guarantors to any of the Subordinated
Parties under the Junior Debt Documents, or otherwise, together with all Ancillary Liabilities relating thereto.

 

Junior
Debt Document: any document referred to in Schedule 5.

 

Junior
Loan Notes: Secured Loan Notes 2014, in the aggregate principal amount of US$11,000,000, issued by the Borrower to the Subordinated
Creditors on 22 April 2014.

 

Junior
Loan Note Instrument: the instrument dated 22 April 2014 (as amended by the First Variation Deed and the Second Variation
Deed) pursuant to which the Junior Loan Notes are, or are to be, constituted.

 

Junior
Security Document: any document referred to in Part 2 of Schedule 5 and any document under which Security is taken pursuant
thereto and any other document under which Security is created, whether at the date of this deed or at any later date, which secures
any of the Junior Debt and is permitted to be taken pursuant to this deed.

 

Junior
Security: any Security in favour of any or all of the Subordinated Parties created by a Junior Security
Document.

 

Liabilities:
all present or future monies, obligations or liabilities, whether actual or contingent and whether owed jointly or severally,
as principal or surety and/or in any other capacity.

 

Losses:
all losses (including loss, of profit), claims, demands, actions, proceedings, damages and other payments, costs, charges,
expenses and other liabilities of any kind.

 

Permitted
Payment: any payment of amounts owing to the Subordinated Parties permitted under clause 5.1 of this deed.

 

Potential
Event of Default: in respect of a Debt Document, any event or circumstance which would (with the expiry of a grace period,
the giving of notice, the making of any determination under the Debt Document, the fulfilment of any other condition or any combination
of any of the foregoing) be an Event of Default (as that term is defined under the relevant Debt Document).

 

Receiver:
a receiver, receiver and manager or administrative receiver appointed by the Senior Creditor pursuant to the provisions of
its Security Documents.

 

Registration
Rights Agreement: the registration rights agreement dated 22 April 2014 between the Borrower and each of the Subordinated
Creditors.

 

Right:
any Security or other right or benefit whether arising by set-off, counterclaim, subrogation, indemnity, proof in liquidation
or otherwise and whether from contribution or otherwise.

 

Second
Variation Deed: the variation deed, dated on or about the date of this deed, between the parties to, and for the purpose of
varying, the Junior Loan Note Instrument and the Share Purchase Agreement.

 

Security
Document: any Senior Security Document and any Junior Security Document.

 

Security:
any mortgage, charge (whether fixed or floating, legal or equitable), pledge, lien, assignment by way of security or other
security interest securing any obligation of any person, or any other agreement or arrangement having a similar effect.

 

    	 	- 3 -	

    	 

    

 

Senior
Credit Agreements: the Calm Waters Credit Agreement and the Co-Investor Credit Agreement.

 

Senior
Debt: all Liabilities which are or may become payable or owing by the Borrower and/or a Guarantor to any Senior Creditor under
the Senior Debt Documents together with all Ancillary Liabilities relating thereto.

 

Senior
Debt Document: any document referred to in Schedule 2.

 

Senior
Discharge Date: the date, as determined by the Senior Creditors, on which all Senior Debt has been unconditionally and irrevocably
paid and discharged in full to the satisfaction of the Senior Creditors, whether or not by enforcement and on which no commitment
is in force under the Senior Debt Documents.

 

Senior
Security Document: any document referred to in Part 2 of Schedule 4 and any document under which Security is taken pursuant
thereto and any other document under which Security is created, whether at the date of this deed or at any later date, which secures
any of the Senior Debt.

 

Senior
Security: any Security in favour of the Senior Creditors created by a Senior Security Document.

 

Share
Purchase Agreement: the share purchase agreement dated 22 April 2014 (as varied by the First Variation Deed and the Second
Variation Deed) between the Borrower and the Subordinated Creditors, pursuant to which, inter alia, the Borrower acquired the
entire issued share capital of Must Have Limited from the Subordinated Creditors.

 

Subordinated
Parties: the Subordinated Creditors and the Junior Security Trustee and a Subordinated Party means any of the Subordinated
Parties.

 

Subsidiary:
a subsidiary undertaking within the meaning of section 1162 of the Companies act 2006.

 

VCIG:
VCIG LLC, a Delaware corporation with number 5477751.

 

VEC:
Victory Electronic Cigarettes, Inc., a Nevada corporation with number E0117932013-0.

 

		1.2	Interpretation

 

In
this deed:

 

		1.2.1	clause,
                                         Schedule and paragraph headings shall not affect the interpretation of this deed;

 

		1.2.2	a
                                         reference to a person shall include a reference to an individual, firm,
                                         company, corporation, partnership, unincorporated body of persons, government, state
                                         or agency of a state or any association, trust, joint venture or consortium (whether
                                         or not having separate legal personality) and that person’s personal representatives,
                                         successors, permitted assigns and permitted transferees;

 

		1.2.3	unless
                                         the context otherwise requires, words in the singular shall

 

		1.2.4	include
                                         the plural and in the plural shall include the singular;

 

    	 	- 4 -	

    	 

    

 

		1.2.5	unless
                                         the context otherwise requires, a reference to one gender shall include a reference to
                                         the other genders;

 

		1.2.6	a
                                         reference to a party shall include that party’s successors, permitted assigns and
                                         permitted transferees;

 

		1.2.7	a
                                         reference to a statute or statutory provision is a reference to it as amended, extended
                                         or re-enacted from time to time;

 

		1.2.8	a
                                         reference to a statute or statutory provision shall include all subordinate legislation
                                         made from time to time under that statute or statutory provision;

 

		1.2.9	a
                                         reference to writing or written includes fax and e-mail;

 

		1.2.10	an
                                         obligation on a party not to do something includes an obligation not to allow that thing
                                         to be done;

 

		1.2.11	a
reference to this deed (or any provision of it) or to any other agreement or document referred to in this deed is a
reference to this deed, that provision or such other agreement or document as amended (in each case, other than in breach of the
provisions of this deed) from time to time;

 

		1.2.12	unless
                                         the context otherwise requires, a reference to a clause or Schedule is to a clause of,
                                         or Schedule to, this deed and a reference to a paragraph is to a paragraph of the relevant
                                         Schedule;

 

		1.2.13	any
                                         words following the terms including, include, in particular, for example or any
                                         similar expression shall be construed as illustrative and shall not limit the sense of
                                         the words, description, definition, phrase or term preceding those terms;

 

		1.2.14	a
                                         reference to an amendment includes a novation, re-enactment, supplement or variation
                                         (and amended shall be construed accordingly);

 

		1.2.15	a
                                         reference to assets includes present and future properties, undertakings, revenues,
                                         rights and benefits of every description; and

 

		1.2.16	a
                                         reference to determines or determined means, unless the contrary is indicated,
                                         a determination made at the absolute discretion of the person making it.

 

		1.3	Schedules

 

The
Schedules form part of this deed and shall have effect as if set out in full in the body of this deed. Any reference to this deed
includes the Schedules.

 

		1.4	Clawback

 

If
a Senior Creditor considers that an amount paid in respect of the Senior Debt is capable of being avoided or otherwise set aside
on the liquidation or administration of the Borrower, a Guarantor or otherwise, then that amount shall not be considered to have
been irrevocably paid for the purposes of this deed.

 

    	 	- 5 -	

    	 

    

 

		2.	PRIORITIES

 

		2.1	Senior
                                         Creditor consent to Junior Security

 

Each
Senior Creditor:

 

		2.1.1	consents
                                         to the creation or subsistence (as appropriate) of the Junior Security and the Junior
                                         Debt under the Junior Debt Documents; and

 

		2.1.2	confirms
                                         that the creation or subsistence of the Junior Security and/or the Junior Debt under
                                         the Junior Debt Documents do not constitute a default by the Borrower or Guarantors under
                                         any of the Senior Debt Documents.

 

		2.2	Subordinated
                                         Parties consent to Senior Security

 

Each
of the Subordinated Parties;

 

		2.2.1	consents
                                         to the creation of the Senior Security; and

 

		2.2.2	confirms
                                         that the creation or subsistence of the Senior Security does not constitute a default
                                         by the Borrower or Guarantors under any of the Junior Debt Documents.

 

		2.3	Ranking
                                         and subordination of debt

 

Each
of the parties agree that:

 

		2.3.1	each
                                         liability comprising the Senior Debt shall rank pari passu with each other liability
                                         comprising the Senior Debt without any preference between such liabilities.

 

		2.3.2	the
                                         Senior Debt ranks and shall rank in priority to the Junior Debt in all respects;

 

		2.3.3	the
                                         Junior Debt is and shall be subordinated to, the Senior Debt; and

 

		2.3.4	no
payments shall(except as otherwise provided in this deed) be made by any person in respect of the Junior Debt while the Senior
Debt is outstanding.

 

		2.4	Ranking
                                         and subordination of security

 

Each
of the parties agree that:

 

		2.4.1	all
                                         Senior Security shall be available in support of all Senior Debt.

 

		2.4.2	the
                                         Senior Security shall rank in priority to the Junior Security; and

 

		2.4.3	the
                                         Junior Security is and shall be subordinated to, and rank after, the Senior Security.

 

		2.5	Monies
                                         received by Subordinated Party

 

If
before the Senior Discharge Date:

 

		2.5.1	any
                                         Subordinated Party receives a payment or distribution in cash or in any other form in
                                         respect of, or on account of the Junior Debt from the Borrower or a Guarantor or any
                                         other source;

 

		2.5.2	any
                                         Subordinated Party receives the proceeds of any enforcement of any security, or payment
                                         under any guarantee, for any Junior Debt; or

 

    	 	- 6 -	

    	 

    

 

		2.5.3	the
                                         Borrower or a Guarantor makes any payment or distribution in cash or in any other form
                                         on account of the purchase or other acquisition of any of the Junior Debt, in each case
                                         in contravention of this deed (and, for the avoidance of doubt, this clause shall not
                                         apply to any Permitted Payment), the relevant Subordinated Party shall forthwith pay
                                         any and all such amounts to the Senior Creditors for application against the Senior Debt
                                         and until it does so shall hold all such amounts on trust for the Senior Creditors.

 

		2.6	Non-permitted
                                         set-off

 

If,
for any reason, the Junior Debt is discharged in whole or in part by set-off in contravention of this deed, the Subordinated Creditors
will forthwith pay an amount equal to the amount of the Junior Debt discharged by the set-off to the Senior Creditors for application
against the Senior Debt.

 

		2.7	Failure
                                         of trust

 

If
for any reason, a trust in favour of, or a holding of property for, the Senior Creditors under this deed is invalid or unenforceable,
the Subordinated Creditors shall pay and deliver to the Senior Creditors in cash or in kind an amount (or, if in kind, a value)
equal to the payment, receipt or recovery which it would otherwise have been bound to hold in trust for, or as property of, the
Senior Creditors.

 

		2.8	Continuing
                                         status of security

 

Nothing
in this deed shall affect the status of the Security Documents as continuing security, nor shall the ranking of the Security in
clause 2.4 be affected by any act, omission, transaction, limitation, matter, thing or circumstance whatsoever which but for this
provision might operate to affect the relative priorities of the Security constituted by the Security Documents, including, but
not limited to:

 

		2.8.1	the
                                         nature of the Security constituted by the Security Documents and the order of their execution
                                         or registration;

 

		2.8.2	any
                                         provision contained in any of the Security Documents;

 

		2.8.3	the,
                                         respective date (or dates) on which any person received notice of the existence or creation
                                         of any Security constituted by any Security Document;

 

		2.8.4	the
                                         respective date (or dates) on which monies may be, or have been, advanced or become owing
                                         or payable under a Debt Document or secured under a Security Document;

 

		2.8.5	any
                                         fluctuation from time to time in the amount of Liabilities secured by a Security Document
                                         and in particular, without limitation, any reduction to nil of the Liabilities so secured;

 

		2.8.6	the
                                         existence at any time of a credit balance on any current or other account of the Borrower
                                         or a Guarantor;

 

		2.8.7	the
                                         appointment of any liquidator, Receiver, administrator or other similar officer either
                                         in respect of the Borrower or a Guarantor or over all or any part of the Borrower’s
                                         or a Guarantor’s assets (as applicable); and/or

 

		2.8.8	any
                                         amendment or supplement to, or variation of, any Debt Document.

 

    	 	- 7 -	

    	 

    

 

		2.9	Invalidity
                                         of security

 

If
all or any of the Senior Security or Junior Security:

 

		2.9.1	is
                                         released; or

 

		2.9.2	is
                                         or becomes wholly or partly invalid or unenforceable,

 

the
Senior Creditors or Subordinated Creditors (respectively) shall bear the resulting loss and shall not be entitled to share in
monies derived from assets over which it has no effective security.

 

		2.10	No
                                         challenge to security

 

No
Creditor shall challenge or question:

 

		2.10.1	the
                                         validity or enforceability of any Security constituted by a Security Document;

 

		2.10.2	the
                                         nature of any Security constituted by a Security Document; or

 

		2.10.3	without
                                         prejudice to the generality of the foregoing, whether any Security constituted by a Security
                                         Document is fixed or floating.

 

		2.11	Conflict
                                         with provision in Debt Documents

 

The
parties agree that if there is an inconsistency between any of the provisions of this deed and the provisions of a Debt Document,
the provisions of this deed shall prevail.

 

		3.	BORROWER
                                         AND GUARANTOR COVENANTS

 

		3.1	Borrower
                                         and Guarantor covenants

 

So
long as the Senior Debt is outstanding, neither the Borrower nor a Guarantor shall, and each shall procure that none of its Subsidiaries
shall (in each case, except as the Senior Creditors have previously consented to in writing):

 

		3.1.1	make
                                         a loan or provide credit to the Subordinated Creditors;

 

		3.1.2	pay
                                         or repay, or make any distribution in respect of, or purchase or acquire, any of the
                                         Junior Debt in cash or kind;

 

		3.1.3	purchase
                                         or acquire, or permit any Subsidiary to purchase or acquire, any of the Junior Debt;

 

		3.1.4	permit
                                         any Subsidiary to purchase or acquire any of the Junior Debt;

 

		3.1.5	exercise
                                         any right of set-off against the Junior Debt;

 

		3.1.6	create,
                                         subsist, or allow to exist, any Security (other than Junior Security) over any of its
                                         assets for, or any guarantee for or in respect of, any of the Junior Debt or in respect
                                         of a loan or credit provided to the Subordinated Creditors by another person;

 

		3.1.7	amend,
                                         waive or release any term of the Junior Debt Documents;

 

		3.1.8	vary
                                         the Junior Debt Documents; or

 

		3.1.9	take,
                                         or omit to take, any action which may impair the ranking or the subordination set out
                                         in this deed.

 

Provided
that the provisions of this clause 3.1 shall not apply to any Permitted Payment.

 

    	 	- 8 -	

    	 

    

	 	 	 
	4.	SUBORDINATED CREDITORS
    AND JUNIOR SECURITY TRUSTEE COVENANTS
	 	 
	4.1	No payment, Security
    or guarantee 
	 	 
	 	Each Subordinated Creditor
    and the Junior Security Trustee covenants with the Senior Creditors that, so long as the Senior Debt is outstanding, it shall
    not (except with the prior consent of the Senior Creditors):
	 	 
	 	4.1.1	demand payment, prepayment or repayment
    of, or any distribution in respect of (or  on account of) any of the Junior Debt in cash or in kind from the Borrower
    or a Guarantor or any other source or apply any money or property in discharge of any Junior Debt;
	 	 	 
	 	4.1.2	receive payment of, or any distribution
    in respect of (or an account of) any of the Junior Debt in cash or in kind from the Borrower or a Guarantor or any other source
    or apply any money or property in discharge of any Junior Debt;
	 	 	 
	 	4.1.3	discharge any of the Junior Debt by
    set-off;
	 	 	 
	 	4.1.4	allow to exist or subsist or receive
    the benefit of any Security, guarantee, indemnity or other assurance against financial loss for, or in respect of, or receive
    the benefit of any guarantee, from any person in respect of the Junior Debt (other than Junior Security);
	 	 	 
	 	4.1.5	take, or omit to take, any action which
    may impair the ranking or the subordination set out in this deed;
	 	 	 
	 	4.1.6	modify, amend, waive or release any
    term of the Junior Debt Documents, except for an amendment which does not prejudice any Senior Debt, the Senior Creditors
    or impair the subordination contemplated by this deed;
	 	 	 
	 	4.1.7	accelerate any of the Junior Debt or
    otherwise declare any of the Junior Debt prematurely payable (other than in accordance with clause 14 of this deed);
	 	 	 
	 	4.1.8	either alone or in conjunction with
    any other person, commence or take any action against the Borrower or a Guarantor for the enforcement of, or in connection
    with, any Junior Debt Document (including for the payment of any amount thereunder) or for the termination thereof (other
    than in accordance with clause 14 of this deed);
	 	 	 
	 	4.1.9	take any step, or support any step,
    which may lead to the Insolvency of the Borrower or a Guarantor (other than in accordance with clause 14 of this deed); and/or
	 	 	 
	 	4.1.10	otherwise exercise any remedy for the
recovery or enforcement of the Junior Debt.
	 	 	 
	 	Provided that the provisions of this clause 4.1 shall not apply to any Permitted
    Payment,
	 	 	 
	4.2	No set-off 
	 	 
	 	Each of the Subordinated
    Parties shall not claim any right of set-off, abatement or any other extinction or reduction in respect of any liability which
    it has to the Borrower or any Guarantor.

 

    	- 9 -

    	 

    

 

	 	 
	4.3	No other arrangements
    
	 	 
	 	Each of the Subordinated
    Parties shall not make any arrangement which would place, or which aims to place, the Subordinated Creditors in a position
    similar to that in which it would be if:
	 	 
	 	4.3.1	it had received a payment
    in respect of the Junior Debt (other than a Permitted Payment); or
	 	 	 
	 	4.3.2	the Junior Debt had been secured by
    Security (other than the Junior Security).
	 	 	 
	4.4	No Security
	 	 
	 	Nothing in clause 2 or
    this clause 4 shall create, or be deemed to create, Security.
	 	 
	5.	PERMITTED PAYMENTS
	 	 
	5.1	The Borrower (or a Guarantor,
    in discharge of the obligations of the Borrower) may, subject to clause 5.2:
	 	 	 
	 	5.1.1	make each payment of interest, and
    all amounts relating to interest, on the Junior Loan Notes on the relevant due date; and/or
	 	 	 
	 	5.1.2	make each scheduled repayment of principal
    of the Junior Loan Notes (excluding, for avoidance of doubt, any voluntary early repayment) in accordance with the Junior
    Loan Note Instrument; and/or
	 	 	 
	 	5.1.3	make any payments in respect of the
    Initial Consideration and Earn-out Consideration (in each case, as defined in the Share Purchase Agreement) due to the Subordinated
    Creditors pursuant to the Share Purchase Agreement.
	 	 	 
	5.2	The payments permitted
    by clause 5.1 may only be made if;
	 	 	 
	 	5.2.1	no step has been taken to enforce any
    Senior Security or Junior Security;
	 	 	 
	 	5.2.2	no event of default, other termination
    event or Potential Event of Default has occurred, is continuing and has not been remedied or waived in respect of any Senior
    Debt Document or would occur as result of the making of the relevant payments; and
	 	 	 
	 	5.2.3	no step has been taken for the winding
    up, dissolution, administration or reorganisation of the Borrower and/or a Guarantor or the appointment of a liquidator, Receiver,
    administrator or other similar officer of the Borrower and/or a Guarantor or any of the assets of the Borrower and/or a Guarantor.
	 	 	 
	6.	WAIVER AND AMENDMENTS
    OF DEBT DOCUMENTS
	 	 
	6.1	No waiver or amendments
    of Junior Debt Documents 
	 	 
	 	Without prejudice to the
    generality of the provisions of clauses 3 and 4, neither the Borrower, any Guarantor nor any Subordinated Party shall agree
    any modification, waiver or amendment to, or make any other agreement affecting, any Junior Debt Document which would:
	 	 
	 	6.1.1	increase the margin or change the basis
    on which the interest payable is calculated under a Junior Debt Document;

 

    	- 10 -

    	 

    

 

	 	 	 	 
	 	6.1.2	increase the commitments
    of the Subordinated Creditors under any Junior Debt Document; or
	 	 	 
	 	6.1.3	amend or vary the gross-up
    or substitute basis provisions in a Junior Debt Document,
	 	 	 
	6.2	No waiver or amendments
    of Senior Debt Documents 
	 	 
	 	Without prejudice to the
    generality of the provisions of clauses 3 and 4, neither the Borrower, any Guarantor nor any Senior Creditor shall agree any
    modification, waiver or amendment to, or make any other agreement affecting, any Senior Debt Document which would:
	 	 
	 	6.2.1	increase the amount of
    interest payable under a Senior Debt Document in excess of  the amount payable under the Senior Credit Agreement
    on the occurrence and continuance of an Event of Default (as defined in the Senior Credit Agreement); or
	 	 	 
	 	6.2.2	extend the Maturity Date
    (as defined in the Senior Credit Agreement) by more than six months or increase the principal amount of the Senior Debt payable
    to the Senior Creditors under the Senior Credit Agreement.
	 	 	 
	7.	SUBORDINATION ON INSOLVENCY
	 	 
	 	Until the Senior Discharge
    Date, if the Borrower and/or a Guarantor becomes Insolvent, the following provisions shall apply:
	 	 
	 	7.1.1	the Junior Debt shall be
    postponed and subordinated in right of payment to the Senior Debt
	 	 	 
	 	7.1.2	no Subordinated Party shall
    take any action in respect of the Junior Debt except with the consent and on the direction of the Senior Creditors (other
    than in accordance with clause 14 of this deed);
	 	 	 
	 	7.1.3	the Senior Creditors may,
    and are irrevocably authorised on behalf of the Subordinated Parties to:
	 	 	 
	 	 	(a)	claim, enforce and prove for the Junior
    Debt;
	 	 	 	 
	 	 	(b)	file claims and proofs, give receipts
    and take all such proceedings and do all such things as the Senior Creditors see fit to recover the Junior Debt;
	 	 	 	 
	 	 	(c)	receive all distributions on the Junior
    Debt for application towards the Senior Debt; and/or
	 	 	 	 
	 	 	(d)	hold all monies received by them under
    clause 7 in a suspense account and shall, as soon as it is reasonably apparent to them that the Senior Debt will not be fully
    discharged, apply them in reduction of the Senior Debt or otherwise.
	 	 	 
	 	7.1.4	if and to the extent that
    the Senior Creditors are not entitled to, or do not wish to, claim, enforce, prove, file claims or proofs, or take proceedings
    for the Junior Debt, the Subordinated Parties shall do so in good time as requested by the Senior Creditors acting in accordance
    with the instructions of the Senior Creditors;

 

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	 	7.1.5	the Subordinated Parties
    shall:
	 	 	 	 
	 	 	(a)	hold any payment or distribution in
    cash or in kind received or receivable by it in respect of the Junior Debt (other than any Permitted Payment received) from
    the Borrower and/or a Guarantor or its estate or from any other source on trust for the Senior Creditors; and
	 	 	 	 
	 	 	(b)	upon demand promptly pay and transfer
    any such payment to the Senior Creditors for application against the Senior Debt;
	 	 	 	 
	 	7.1.6	the trustee in bankruptcy,
    liquidator, Receiver, assignee or other person distributing the, assets of the Borrower and/or a Guarantor or their proceeds
    is directed to pay distributions on the Junior Debt direct to the Senior Creditors until the Senior Debt is irrevocably paid
    in full and each Subordinated Party shall give all such directions and/or instructions as the Senior Creditors may reasonably
    require to give effect to this sub-clause;
	 	 	 	 
	 	7.1.7	the Senior Creditors may
    (and are hereby irrevocably authorised to) exercise all powers of convening meetings, voting and representation in respect
    of the Junior Debt and the Subordinated Parties shall provide the Senior Creditors with all necessary forms of proxy and of
    representation; and
	 	 	 	 
	 	7.1.8	if and to the extent that
    the Senior Creditors are not entitled to exercise a power conferred by this clause 7, the Subordinated Parties:
	 	 	 	 
	 	 	(a)	shall exercise the power as the Senior
    Creditors direct; and
	 	 	 	 
	 	 	(b)	shall not exercise any power so, as
    to impair this subordination.
	 	 	 	 
	8.	TREATMENT OF DISTRIBUTIONS
	 	 	 	 
	8.1	Realisation of distribution
	 	 	 	 
	 	8.1.1	If any Senior Creditor receives any distribution otherwise than in cash in respect of the Junior Debt from the Borrower, a Guarantor or any other source, such Senior Creditor may realise the distribution as it sees fit and the Senior Debt shall not be deemed reduced by the distribution until and except to the extent that the realisation proceeds are applied towards the Senior Debt.
	 	 	 	 
	 	8.1.2	Each Subordinated Party will at its own expense do all such things as the Senior Creditors may require as being necessary or desirable to transfer to the Senior Creditors all payments and distributions which must be turned over or held in trust for the Senior Creditors, including endorsements and execution of formal transfers, and will pay all costs and stamp duties in connection therewith,
	 	 	 	 
	8.2	Currency exchange 
	 	 	 	 
	 	If the Senior Creditors
    receive any payment required to be paid by a Subordinated Creditor under this deed or paid in respect of the Junior Debt in
    a currency other than the currency of the Senior Debt, such Senior Creditors may convert the currency received into the currency
    of the Senior Debt at a prevailing market rate of exchange and the Senior Debt shall not be deemed reduced by the payment
    until and except to the extent that the proceeds of conversion are applied toward the Senior Debt.

 

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	9.	PRESERVATION OF RIGHTS
	 	 	 
	9.1	No waiver of rights
	 	 	 
	 	No delay in exercising
    rights and remedies in respect of the Senior Debt or the Junior Debt, or the Senior Security or the Junior Security, because
    of any term of this deed postponing, restricting or preventing such exercise shall operate as a waiver of any of those rights
    and remedies.
	 	 	 
	9.2	Junior Debt remains
    due and payable 
	 	 
	 	The Junior Debt shall remain
    owing, or due and payable, from the Borrower and/or a Guarantor, and interest and default interest will accrue on missed payments
    in accordance with the terms of the Junior Debt Documents, despite any term of this deed that might postpone, subordinate
    or prevent payment of the Junior Debt.
	 	 
	10.	CO-OPERATION BY BORROWER,
    THE GUARANTORS, THE SUBORDINATED CREDITORS AND THE JUNIOR SECURITY TRUSTEE 
	 	 
	10.1	Co-operation by Borrower,
    the Guarantors, the Subordinated Creditors and the Junior Security Trustee
	 	 
	 	The Senior Creditors may
    require the Borrower, a Guarantor, the Subordinated Creditors and/or the Junior Security Trustee, either jointly or severally,
    to sign any document and take any steps to protect or give effect to any of the Senior Creditors’ rights under this
    deed, or any similar or related purpose.
	 	 
	11.	PRESERVATION OF SUBORDINATION
	 	 
	11.1	Continuing subordination
	 	 
	 	The subordination and priority
    provisions in this deed constitute continuing subordination and priority arrangements and benefit the ultimate balance of
    the Senior Debt, regardless of any intermediate payment or discharge of the Senior Debt in whole or in part.
	 	 
	11.2	Waiver of defences
	 	 
	 	The subordination and priority
    arrangements in this deed and the obligations of the Subordinated Creditors and the Junior Security Trustee under this deed
    will not be affected by any act, omission, matter or thing which but for this provision, might operate to reduce, release
    or prejudice the subordination or any of those obligations in whole or in part, including (without limitation and whether
    or not known to any party):
	 	 
	 	11.2.1	any variation, extension, discharge,
    compromise, dealing with, exchange or renewal of any right or remedy which a Creditor and/or the Junior Security Trustee may
    now, or after the date of this deed, have from or against the Borrower, a Guarantor or any other person;
	 	 	 
	 	11.2.2	any grant of time, waiver or indulgence
    granted to or composition with the Borrower, a Guarantor or any other person;
	 	 	 
	 	11.2.3	any act or omission by a Creditor and/or
    the Junior Security Trustee or any other person in varying, compromising, exchanging, renewing, releasing, taking up, perfecting
    or enforcing or any right, any Security, indemnity, or guarantee or any other security interest from or against the Borrower,
    a Guarantor or any other person or any non-presentation or non-observance of any formality or other requirement in respect
    of any instruments or any failure to realise the full value of any security;

 

    	- 13 -

    	 

    

 

	 	 	 
	 	11.2.4	any termination, amendment, variation, novation or supplement of or to any Debt Document;
	 	 	 
	 	11.2.5	any Insolvency, bankruptcy, liquidation, administration, winding up, incapacity, limitation, disability, discharge by operation of law, or similar proceedings or any change in the constitution, name or style of or in relation to the Borrower, a Guarantor or any other person;
	 	 	 
	 	11.2.6	the release of the Borrower, a Guarantor or any other, person under the terms of any composition or arrangement;
	 	 	 
	 	11.2.7	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of the Borrower, a Guarantor or any other person;
	 	 	 
	 	11.2.8	any amendment (however fundamental) or replacement of a Debt Document or any other document or security;
	 	 	 
	 	11.2.9	any invalidity, illegality, unenforceability, irregularity or frustration of any actual or purported obligation of, or Security held from, the Borrower, a Guarantor or any other person under any Debt Document or any other document or security; and/or
	 	 	 
	 	11.2.10	any claim or enforcement of payment from the Borrower, a Guarantor or any other person. 
	 	 	 
	11.3	Immediate recourse
	 	 
	 	Each of the Subordinated Creditors and the Junior Security Trustee waives any right it may have to require the Senior Creditors (or any trustee or agent on its behalf) to:
	 	 	 
	 	11.3.1	take any action or obtain judgment in any court against the Borrower, a Guarantor or any other person;
	 	 	 
	 	11.3.2	make or file any claim in a bankruptcy, liquidation, administration or Insolvency of the Borrower, a Guarantor or any other person; or
	 	 	 
	 	11.3.3	proceed against, make, demand, enforce or seek to enforce any claim, security, right or remedy against the Borrower, a Guarantor or any other person,
	 	 	 
	 	11.3.4	to proceed against or enforce any other rights or security or claim payment from any person before claiming the benefit of this subordination, of the security conferred by the Security Documents or of the obligations of the Subordinated Creditors or the Junior Security Trustee under this deed. The Senior Creditors (or any trustee or agent on their behalf) may refrain from applying or enforcing any money, rights or security.

   

    	- 14 -

    	 

    

	 	 	 
	11.4	Non-competition
	 	 
	 	Each of the Subordinated Creditor and the Junior Security Trustee warrants to the Senior Creditors that it has not taken or received, and shall not take, exercise or receive the benefit of any Right from or against the Borrower, a Guarantor or a liquidator or administrator of the Borrower or a Guarantor or any other person in connection with any liability of, or payment by, the Subordinated Creditors or the Junior Security Trustee under this deed but:

	 	 	 	 
	 	11.4.1	if any such Right is taken,
    exercised or received by the Subordinated Creditors or the Junior Security Trustee, that Right and all monies at any time
    received or held in respect of that Right shall be held by the Subordinated Creditors and/or the Junior Security Trustee on
    trust for the Senior Creditors for application in or towards the discharge of the Senior Debt; and
	 	 	 
	 	11.4.2	on demand by the Senior
    Creditors, each of the Subordinated Creditors and the Junior Security Trustee shall promptly transfer, assign or pay to the
    Senior Creditors all Rights and all monies from time to time held on trust by the Subordinated Creditors and/or the Junior
    Security Trustee under this clause 11.4.
	 	 	 
	12.	BOOK DEBTS, INSURANCE
    AND CUSTODY OF DOCUMENTS
	 	 
	12.1	Book debts
	 	 
	 	Notwithstanding the terms
    of any charge over book or other debts contained in any Security Document, and any covenant by the Borrower or a Guarantor
    to pay those debts into any particular account, the parties agree that:
	 	 
	 	12.1.1	the Borrower and/or a Guarantor
    (as applicable) shall not be deemed to be in breach of any such covenant so long as it complies with any such covenant in
    the Senior Debt Documents;
	 	 	 
	 	12.1.2	the Senior Creditors may
    credit any payments received by a Senior Creditor in respect of book and other debts to any account of the Borrower or a Guarantor
    with the Senior Creditors; and
	 	 	 
	 	12.1.3	the Senior Creditors may,
    in respect of any credit balances on any of the Borrower’s or a Guarantor’s accounts, notwithstanding any charge
    over those credit balances created by any Junior Security Document:
	 	 	 
	 	 	(a)	permit the Borrower and/or a Guarantor
    to draw on any credit balance and otherwise permit any such account to continue to be operated as a current account; and
	 	 	 	 
	 	 	(b)	to the extent permitted by the relevant
    Senior Debt Document, exercise any right of set-off or combination it may have against any account of the Borrower and/or
    a Guarantor without regard to the other provisions of this deed or any Junior Debt Document.
	 	 	 	 
	12.2	Insurance
	 	 
	 	The Senior Creditors may
    require the Borrower and/or a Guarantor to insure its assets and, prior to the Enforcement Date, apply any monies received
    or recovered in respect of any claim under any relevant insurance policy in accordance with the terms of the Senior Debt Documents
    or such other insurance provisions in the Debt Documents as the Senior Creditors may select. The Creditors acknowledge that
    the Borrower’s or the Guarantor’s (as applicable) compliance with the insurance obligations so selected shall
    be a full discharge by the Borrower or such Guarantor (as applicable) of its insurance obligations under the Debt Documents.
	 	 
	12.3	Title documents
	 	 
	 	The Senior Creditors
    shall     be entitled, but not obliged, to hold each title or other document relating to any asset subject to Senior
    Security. The Subordinated     Parties may inspect any such documents provided it gives reasonable prior written notice to
    the Senior Creditors.

 

    	- 15 -

    	 

    

 

	 	 	 
	13.	SENIOR DEBT ENFORCEMENT
	 	 
	13.1	Co-operation by Subordinated
    Creditors and Junior Security Trustee
	 	 
	 	The Subordinated Creditors
    and Junior Security Trustee will, at the request of the Senior Creditors or any Receiver appointed by the Senior Creditors,
    join in such documents or otherwise take such action as may be reasonably required by the Senior Creditors or such Receiver
    to facilitate the disposal of any asset subject to Senior Security whether or not there will be any balance of proceeds available
    for the Subordinated Creditors and/or Junior Security Trustee arising from that disposal.
	 	 
	13.2	Distressed Disposal
	 	 
	 	If a Distressed Disposal is being effected, the Senior Creditors are irrevocably authorised by the parties
hereto to release the Senior Security and/or the Junior Security over the asset and/or to execute and deliver or enter into any
release of that Security that may, in the discretion of the Senior Creditors, be considered necessary or desirable in order to
effect the Distressed Disposal.
	 	 
	14.	ENFORCEMENT BY THE SUBORDINATED
    CREDITORS AND/OR THE JUNIOR SECURITY TRUSTEE
	 	 
	14.1	Subject to clause 14.2
    below, until the Senior Discharge Date, unless the Senior Creditors have previously consented in writing, none of the Subordinated
    Creditors or the Junior Security Trustee shall:
	 	 
	 	14.1.1	accelerate any of the Junior Debt or
    otherwise declare any of the Junior Debt prematurely payable on an event of default or otherwise;
	 	 	 
	 	14.1.2	enforce the Junior Debt by execution
    or otherwise; or
	 	 	 
	 	14.1.3	initiate or support or take any steps
    with a view to any Insolvency, liquidation, reorganisation, administration or dissolution proceedings or any voluntary arrangement
    or assignment for the benefit of creditors or any similar proceedings involving the Borrower, whether by petition, filing
    or service of a notice, convening a meeting, voting for a resolution or otherwise.
	 	 	 
	14.2	The restrictions in
    clause     14.1 will not apply to the Subordinated Creditor or the Junior Security Trustee if an Event of Default as defined
    in the Junior     Document has occurred (a Junior Default) and:
	 	 
	 	14.2.1	the Senior Creditors have received
    notice of the Junior Default from the Subordinated Parties (or any of them); and
	 	 	 
	 	14.2.2	a period of not less than 180 days
    has passed from the date of the notice of the relevant Junior Default (Junior Standstill Period); and
	 	 	 
	 	14.2.3	at the end of the relevant Junior Standstill
    Period, the relevant Junior Default is continuing and has not been waived by the Subordinated Parties; and
	 	 	 
	 	14.2.4	the Senior Creditors have not taken
    any steps to enforce the security conferred by the Senior Security Documents (or any of them).

 

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	15.	INFORMATION BY SUBORDINATED CREDITOR
	 	 	 
	15.1	Defaults
	 	 	 
	 	Each Subordinated Party
    will, promptly upon becoming aware of the same, notify the Senior Creditors of the occurrence of any event of default or potential
    event of default (howsoever described) or mandatory prepayment event or other event entitling that Subordinated Party to demand
    prepayment or repayment of any Junior Debt prior to its specified maturity under the Junior Debt Documents.
	 	 
	15.2	Amounts of debt
	 	 	 
	 	Each Subordinated Party
    will on the written request by the Senior Creditors notify the Senior Creditors in writing of details of the amount of the
    Junior Debt.
	 	 
	16.	APPLICATION OF PROCEEDS
	 	 	 
	16.1	Priorities
	 	 	 
	 	The priority of the Creditors
    shall stand (regardless of the order of execution, registration or notice or otherwise) so that all amounts from time to time
    received or recovered by a Creditor pursuant to the terms of any Debt Document or in connection with the realisation or enforcement
    of all or any part of the Security constituted by any of the Security Documents shall, after providing for all reasonable
    outgoings, costs, charges, expenses and liabilities of enforcement, exercising rights on winding up and payments ranking in
    priority as a matter of law, be applied in the following order of priority:
	 	 
	 	16.1.1	first, in or towards discharge of the
    Senior Debt;
	 	 	 
	 	16.1.2	second, once the Senior Debt has been
    fully discharged, in or towards discharge of the Junior Debt; and
	 	 	 
	 	16.1.3	third, after the Junior Debt has been
    fully discharged, to the Borrower, the Guarantors or any other person entitled to it.
	 	 	 
	16.2	Preferential payments
	 	 
	 	Each Subordinated Party
    shall bring into account any preferential payments received by it under section 175 of the insolvency Act 1986.
	 	 
	16.3	Purchaser protection
	 	 
	 	No purchaser dealing with
    a Creditor or any Receiver shall be concerned in any way with the provisions of this deed, but shall assume that the Creditor
    or Receiver, as the case may be, is acting in accordance with the provisions of this deed.
	 	 
	17.	REFINANCING OF SENIOR
    DEBT
	 	 
	17.1	Refinancing of Senior
    Debt
	 	 
	 	Each of the Subordinated
    Parties agrees that, subject to clause 17.2:
	 	 
	 	17.1.1	the Senior Debt may be refinanced at
    any time by any person whether or not that person is a Senior Creditor (provided that if that person is not a Senior Creditor,
    it is a bank or banks of international repute and creditworthiness); and
	 	 	 
	 	17.1.2	the new debt shall rank with the priority
    specified in this deed.

 

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	17.2	Conditions of new Senior Debt
	 	 	 
	 	17.2.1	The terms of any refinancing of the
    Senior Debt shall not be more onerous for the Borrower and/or the Guarantors than the terms of the Senior Debt as at the date
    of this deed and the principal amount of the Senior Debt shall not be increased as a result of any such refinancing.
	 	 	 
	 	17.2.2	Any new lender of the refinanced Senior
    Debt shall, before, or at the same time as, it becomes a lender of the refinanced Senior Debt, execute and deliver to the
    Subordinated Parties (in a form acceptable to the Subordinated Parties) in which that new lender undertakes to be bound by
    the terms of this deed.
	 	 	 
	18.	POWER OF ATTORNEY
	 	 
	18.1	Appointment of attorney
	 	 
	 	By way of security, each
    of the Borrower, each Guarantor, the Subordinated Creditors and the Junior Security Trustee irrevocably appoints the Senior
    Creditors to be its attorney and, in its name, on its behalf and as its act and deed, to execute any documents and do any
    acts and things which the Borrower, the Guarantors, the Subordinated Creditors and/or the Junior Security Trustee are required
    to execute and do under this deed.
	 	 
	18.2	Ratification of acts
    of attorney 
	 	 
	 	Each of the Borrower, a
    Guarantor, the Subordinated Creditors and the Junior Security Trustee ratifies and confirms, and agrees to ratify and confirm,
    anything which any of its attorneys may do in the proper and lawful exercise or purported exercise of all or any of the powers,
    authorities and discretions referred to in clause 18.1.
	 	 
	19.	EXPENSES
	 	 
	19.1	Negotiation and amendment
    costs and expenses
	 	 
	 	The Borrower and each Guarantor
    shall, within five Business Days of demand, pay to, or reimburse, a Senior Creditor, on a full indemnity basis, all costs,
    charges, expenses, taxes and liabilities of any kind (including, without limitation, legal, printing and out-of-pocket expenses)
    properly incurred by that Senior Creditor in connection with:
	 	 
	 	19.1.1	the negotiation, preparation and execution
    of this deed; or
	 	 	 
	 	19.1.2	any amendment, extension, waiver, consent
    or suspension of rights (or any proposal for any of these) relating to this deed,
	 	 	 
	 	together with interest,
    which shall accrue and be payable (without the need for any demand for payment being made) from the date on which the relevant
    cost or expense arose until full discharge of that cost or expense (whether before or after judgment, liquidation, winding
    up or administration of the Borrower) at the rate (the Default Rate) and in the manner provided for in the Senior Credit
    Agreement in respect of interest applying on the occurrence and continuance of an Event of Default (as defined in the Senior
    Credit Agreement).
	 	 
	19.2	Enforcement costs, expenses
    and Losses
	 	 
	 	19.2.1	The Borrower and the Guarantors shall,
    on demand, pay to each Creditor the amount of all costs and expenses (including legal, printing and out-of-pocket expenses)
    properly incurred by the relevant Creditor in connection with enforcing, preserving any rights under, or monitoring the provisions
    of this deed.

 

    	- 18 -

    	 

    

 

	 	 	 	 
	 	19.2.2	The Subordinated Parties shall on demand indemnify and keep indemnified the Senior Creditors against all Losses suffered or incurred by any of them in respect of any breach of any of the Subordinated Parties’ covenants or other obligations under this deed.
	 	 	 	 
	19.3	Legal expenses and taxes 
	 	 	 
	 	The costs and expenses referred to in clause 19.2 above include, without limitation, the fees and expenses of legal advisers and any value added tax or similar tax, and are payable in the currency in which they are incurred.
	 	 
	19.4	Default interest
	 	 	 
	 	19.4.1	If the Borrower, a Guarantor or any Subordinated Party fails to pay any amount payable by it under this deed to a Senior Creditor, it must, on demand by the Senior Creditor, pay interest on the overdue amount from the due date up to the date of actual payment (both before and after judgment).
	 	 	 	 
	 	19.4.2	Interest on an overdue amount is payable at a rate equal to the Default Rate.
	 	 	 	 
	 	19.4.3	For the purpose of determining the relevant rate under clause 19.4 above, the
    Senior Creditors may:
	 	 	 	 
	 	 	(a)	select successive periods of any duration up to three months; and
	 	 	 	 
	 	 	(b)	determine the appropriate rate fixing day for that period.
	 	 	 	 
	 	19.4.4	Interest (if unpaid) on an overdue amount will be compounded at the end of the
    period selected by the Senior Creditors under clause 19.4.3 above but will remain immediately due and payable.
	 	 	 	 
	 	19.4.5	Any interest accruing under this clause 19.4 accrues from day to day and is
    calculated on the basis of the actual number of days elapsed and a year of 360 days.
	 	 	 	 
	19.5	Certificates and Determinations
	 	 	 	 
	 	Any certification or determination by the Senior Creditors of a rate or amount under this deed is, in the absence of manifest error, conclusive evidence of the matters to which it relates.
	 	 	 	 
	19.6	No Deduction
	 	 	 	 
	 	All payments to be made by the Borrower, a Guarantor or any Creditor under this deed shall be made without any set-off, counterclaim or equity and (subject to the following sentence) free from, clear of and without deduction for any taxes, duties, levies, imposts or charges whatsoever, present or future, If the Borrower, a Guarantor or any Creditor is compelled by the law of any applicable jurisdiction (or by an order of any regulatory authority in such jurisdiction) to withhold or deduct any sums in respect of taxes, duties, levies, imposts or charges from any amount payable to a Creditor under this deed or, if any such withholding or deduction is made in respect of any recovery from the Borrower, a Guarantor or any Creditor under this deed, the relevant party shall pay such additional amount so as to ensure that the net amount received by the relevant Creditor shall equal the full amount due to it under the provisions of this deed (had no such withholding or deduction been made).
	 	 	 	 

  

    - 19
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	19.7	Currency of Payment
	 	 	 	 
	 	The obligation of the Borrower, a Guarantor or any Creditor under this deed to make payments in any currency shall not be discharged or satisfied by any tender, or recovery pursuant to any judgment or otherwise, expressed in or converted into any other currency, except to the extent that tender or recovery results in the effective receipt by the Senior Creditors of the full amount of the currency expressed to be payable under this deed.
	 	 	 	 
	19.8	Currency Indemnity
	 	 	 	 
	 	19.8.1	If any sum due from the Borrower, a Guarantor or any Creditor under this deed
    (a Sum), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency
    (the First Currency) in which that Sum is payable into another currency (the Second Currency) for the purpose
    of:
	 	 	 	 
	 	 	(a)	making or filing a claim or proof against the party;
	 	 	 	 
	 	 	(b)	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings; or 
	 	 	 	 
	 	 	(c)	applying the Sum in satisfaction of any amount due under this deed, 
	 	 	 	 
	 	 	the relevant party shall, as an independent obligation, within three Business Days of demand, indemnify the relevant Creditor against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to the relevant Creditor at the time of its receipt of that Sum.
	 	 	 	 
	 	19.8.2	Each of the Borrower, each Guarantor and each Creditor waives any right it may have in any jurisdiction to pay, any amount under this deed in a currency or currency unit other than that in which it is expressed to be payable. 
	 	 	 	 
	20.	DURATION
	 	 	 	 
	20.1	Duration
	 	 	 	 
	 	This deed shall cease to have effect when the Senior Debt has, to the satisfaction of the Senior Creditors, been irrevocably and unconditionally paid and discharged in full.
	 	 	 	 
	21.	RESTRICTIONS ON ASSIGNMENTS
	 	 	 	 
	21.1	Successors and assigns
	 	 	 	 
	 	This Deed is binding on the successors and assigns of the parties hereto.
	 	 	 	 
	21.2	Borrower and Guarantors
	 	 	 	 
	 	The Borrower and Guarantors may not assign or transfer any of their rights (if any) or obligations under this deed.
	 	 	 	 
	21.3	Subordinated Creditors and Junior Security Trustee
	 	 	 	 
	 	The Subordinated Creditors or the Junior Security Trustee may assign or otherwise
    dispose of all or any of its rights under this deed provided that: (i) the relevant assignee or transferee executes and
    delivers to the Senior Creditors a deed (in a form acceptable to the Senior Creditors) pursuant to which the assignee or
    transferee agrees to be bound by the terms of this deed; and (ii) there is no event of default under any Debt Document
    subsisting as at the date of the proposed assignment and/or transfer. 
	 	 	 	 

  

    - 20
                                                                    -

     

    

 

	 	 	 	 
	21.4	The Senior Creditors 
	 	 	 	 
	 	The Senior Creditors may, at any time, assign or otherwise dispose of all or any of their rights under this deed in accordance with the Debt Documents to which they are a party provided that the relevant assignee or transferee executes and delivers to the Subordinated Parties a deed (in a form acceptable to the Subordinated Parties) pursuant to which the assignee or transferee agrees to be bound by the terms of this deed.
	 	 	 	 
	22.	BORROWER’S AND GUARANTOR’S ACKNOWLEDGEMENTS
	 	 	 	 
	22.1	Borrower’s and Guarantors’ acknowledgement and consent 
	 	 	 	 
	 	Each of the Borrower and each Guarantor acknowledges the terms of this deed and consents to the Creditors communicating with each other about the Borrower’s and/or each Guarantors’ affairs for the purposes of this deed.
	 	 	 	 
	22.2	No reliance by Borrower or Guarantor
	 	 	 	 
	 	Each of the Borrower and each Guarantor further acknowledges that none of the provisions entered into by the Creditors are for the benefit of the Borrower and/or the Guarantors, nor may they be enforced or relied on by the Borrower and/or the Guarantors.
	 	 	 	 
	23.	ENDORSEMENT ON DEBT DOCUMENTS
	 	 	 	 
	23.1	Endorsement on Debt Documents
	 	 	 	 
	 	Each of the Creditors agrees to endorse a memorandum of this deed on each Debt Document entered into, or to be entered into, in its favour, and acknowledges the right of the other Creditors to the, production and delivery of a copy of any such Debt Document as soon as reasonably practicable.
	 	 	 	 
	24.	REMEDIES, WAIVERS, AMENDMENTS AND CONSENTS
	 	 	 	 
	24.1	Amendments
	 	 	 	 
	 	Any amendment to this deed shall be in writing and signed by, or on behalf of, each party, except that:
	 	 	 	 
	 	24.1.1	the Senior Creditors do not need the consent of any party other than the Borrower (and no other party, other than the Borrower, need be party to any amendment document) to an amendment to this deed that only alters the Borrower’s obligations to the Senior Creditors and the, corresponding rights of the Senior Creditors; 
	 	 	 	 
	 	24.1.2	the Senior Creditors do not need the consent of any party other than a Guarantor (and no other party, other than such Guarantor, need be party to any amendment document) to an amendment to this deed that only alters such Guarantor’s obligations to the Senior Creditors and the corresponding rights of the Senior Creditors; 
	 	 	 	 
	 	24.1.3	the Senior Creditors do not need the consent of any party other than the Borrower and the Guarantors (and no other party,  other than the Borrower and the Guarantors, need be party to any amendment document) to an amendment to this deed that only alters the Borrowers and Guarantors’ obligations to the Senior Creditors and the corresponding rights of the Senior Creditors; and 
	 	 	 	 

 

    - 21
                                                                    -

     

    

 

	 	 	 	 
	 	24.1.4	the Creditors do not need the consent of the Borrower or the Guarantors (and no party, other than the Creditors, need to be party to any amendment document) to an amendment to this deed that only alters the obligations of the Creditors to each other and the corresponding rights of the Creditors. 
	 	 	 	 
	24.2	Waivers and consents 
	 	 	 	 
	 	24.2.1	A waiver of any right or remedy under this deed or by law, or any consent given under this deed, is only effective if given in writing by the waiving or consenting party and shall not be deemed a waiver of any other breach or default.  It only applies in the circumstances for which it is given and shall not prevent the party giving it from subsequently relying on the relevant provision. 
	 	 	 	 
	 	24.2.2	A failure or delay by a party to exercise any right or remedy provided under this deed or by law shall not constitute a waiver of that or any other right or remedy, prevent or restrict any further exercise of that or any other right or remedy or constitute an election to affirm this deed. No single or partial exercise of any right or remedy provided under this deed or by law shall prevent or restrict the further exercise of that or any other right or remedy.  No election to affirm this deed by a Creditor shall be effective unless it is in writing. 
	 	 	 	 
	24.3	Rights and remedies
	 	 	 	 
	 	The rights and remedies provided under this deed are cumulative and are in
    addition to, and not exclusive of, any rights and remedies provided by law.
	 	 	 	 
	25.	SEVERANCE
	 	 	 	 
	25.1	Severance
	 	 	 	 
	 	If any provision (or part of a provision) of this deed is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable.  If such modification is not possible, the relevant provision (or part of a provision) shall be deemed deleted. Any modification to or deletion of a provision (or part of a provision) under this clause shall not affect the legality, validity and enforceability of the rest of this deed.
	 	 	 	 
	26.	COUNTERPARTS
	 	 	 	 
	26.1	Counterparts
	 	 	 	 
	 	26.1.1	This deed may be executed in any number of counterparts, each of which when executed and delivered shall constitute a duplicate original, but all the counterparts shall together constitute one deed. 
	 	 	 	 
	 	26.1.2	Transmission of the executed signature page of a counterpart of this deed by fax or e-mail (in PDF, JPEG or other agreed format) shall take effect as delivery of an executed counterpart of this deed. If either method of delivery is adopted, without prejudice to the validity of the deed thus made, each party shall provide the others with the original of such counterpart as soon as reasonably possible thereafter. 
	 	 	 	 
	 	26.1.3	No counterpart shall be effective until each party has executed and delivered at least one counterpart.
	 	 	 	 

  

    - 22
                                                                    -

     

    

 

 

	 	 	 	 
	27.	THIRD PARTY RIGHTS
	 	 	 	 
	27.1	Third party rights
	 	 	 	 
	 	27.1.1	Except as expressly provided in this deed, a person who is not a party to this deed shall not have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce, or enjoy the benefit of, any term of this deed. This does not affect any right or remedy of a third party which exists, or is available, apart from that Act.
	 	 	 	 
	 	27.1.2	The rights of the parties to rescind or agree any amendment or waiver under this deed are not subject to the consent of any other person.
	 	 	 	 
	28.	PERPETUITY PERIOD
	 	 	 	 
	28.1	Perpetuity period
	 	 	 	 
	 	If the rule against perpetuities applies to any trust created by this deed, the
    perpetuity period  shall  be 125 years (as  specified  by section 5(1) of the
    Perpetuities and Accumulations Act 2009).
	 	 	 	 
	29.	NOTICES
	 	 	 	 
	29.1	Delivery
	 	 	 	 
	 	Each notice or other communication required to be given under or in connection with this deed shall be:
	 	 	 	 
	 	29.1.1	in writing;
	 	 	 	 
	 	29.1.2	delivered by hand, by pre-paid first-class post or other next working day delivery service or sent, by fax or e-mail; and
	 	 	 	 
	 	29.1.3	sent to:
	 	 	 	 
	 	 	(a)	the Senior Creditors at the addresses set out in Schedule 2 of this deed..
	 	 	 	 
	 	 	(b)	the Subordinated Creditors at the addresses set out in Schedule 3 of this deed, with a copy by e-mail to dlevhome@btinternet.com; miguelcorral@live.co.uk and ian.riggs@hilldickinson.com.
	 	 	 	 
	 	 	(c)	the Junior Security Trustee at:
	 	 	 	 
	 	 	 	1 Sergeants Lane, Whitefield, M45 7TR.

                                    Attention: Miguel Carlos Corral

                                    Email: miguelcorral@live.co.uk

                                    Copy by email to ian.riggs@hilldickinson.com

	 	 	 	 
	 	 	(d)	the Borrower at:
	 	 	 	 
	 	 	 	14200 Ironwood Drive, Grand Rapids, Michigan 49534, USA

                                    E-mail: phil.anderson@ecigcorporate.com, Darren@fieldstx.com

                                    Copy by e-mail to: apanjwani@pryorcashman.com. jes@robinsonbrog.com

                                    Attention: Phil Anderson and Darren Stanwood

	 	 	 	 

 

    - 23 -

     

    

  

	 	 	 	 	 
	 	 	(e)	the Guarantors at:
	 	 	 	 	 
	 	 	 	Units 3-8 Bury South Business Park,  Riverview Close,  Dumers Lane, Manchester M26 2AD
	 	 	 	 	 
	 	 	 	For the attention of: Phil Anderson and Darren Stanwood

                                                Copy by e-mail to jes@robinsonbrog.com, Isteele@pryorcashman.com

                                                and to kevin.mccarthy@mishcon.com

                                                Attention: Phil Anderson and Darren Stanwood

	 	 	 	 	 
	 	 	or to such other address or fax number as is notified in writing by one party to the others from time to time. 
	 	 	 	 	 
	29.2	Receipt
	 	 	 	 	 
	 	Any notice or other communication given under or in connection with this deed shall be deemed to be received:
	 	 	 	 	 
	 	29.2.1	if delivered by hand, at the time it is left at the relevant address;
	 	 	 	 	 
	 	29.2.2	if posted by pre-paid first-class post or other next working day delivery service, on the second Business Day after posting: and
	 	 	 	 	 
	 	29.2.3	if sent by fax, when received in legible form.
	 	 	 	 	 
	 	A notice or other communication given as described in clause 29.1.1 or clause 29.1.3 on a day which is not a Business Day, or after normal business hours, in the place it is received, shall be deemed to have been received on the next Business Day.
	 	 	 	 	 
	29.3	Service of proceedings
	 	 	 	 	 
	 	This clause 29 does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution.
	 	 	 	 	 
	30.	GOVERNING LAW AND JURISDICTION
	 	 	 	 	 
	30.1	Governing law
	 	 	 	 	 
	 	This deed and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by, and construed in accordance with, the law of England and Wales, 
	 	 	 	 	 
	30.2	Jurisdiction
	 	 	 	 	 
	 	30.2.1	The courts of England have exclusive jurisdiction to settle any dispute, controversy, proceedings, claim or obligation of whatever nature arising out of or in connection with this Agreement (whether contractual or non-contractual) including a dispute regarding the existence, validity or termination of this Agreement (a Dispute). 
	 	 	 	 	 
	 	30.2.2	The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no party will argue to the contrary. 
	 	 	 	 	 
	 	30.2.3	This clause 30.2 is for the benefit of the Senior Creditor only. As a result, the Senior Creditor shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Senior Creditor may take concurrent proceedings in any number of jurisdictions. 

 

    - 24 -

     

    

 

	 	 
	30.3	Other service
	 	 
	 	Each of the Borrower, each Guarantor, the Junior Security Trustee and each Subordinated Creditor irrevocably consents to any process in any legal action or proceedings under clause 30.2 being served on it in accordance with the provisions of this deed relating to service of notices.  Nothing contained in this deed shall affect the right to serve process in any other manner permitted by law. 
	 	 
	30.4	Agent for service
	 	 
	 	Each of the Borrower, VEC, VCIG, FINBG and HIAC irrevocably appoints Vapestick Holdings Limited for service at 25 Harley Street, London, WIG 9BR (for the attention of Michael Clepper) as its agent to receive on its behalf in England or Wales service of any proceedings under clause 30. Such service shall be deemed completed on delivery to such agent (whether or not it is forwarded to and received by the Borrower, VEC, VCIG, HIAC and/or FINBG as applicable) and shall, be valid until such time as the Creditors have received prior written notice from the Borrower, VEC, VCIG, HIAC and/or FINBG (as applicable) that such agent has ceased to act as agent. If for any reason such agent ceases to be able to act as agent or no longer has an address in England or Wales, the Borrower, VEC, VCIG, HIAC and/or FINBG (as applicable) shall forthwith appoint a substitute acceptable to the Creditors and deliver to the Creditors the new agent’s name and address within England and Wales.
	 	 
	This document has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it. 

 

    - 25 -

     

    

 

SCHEDULE
1 - GUARANTORS

 

	Name	Company
    Number	Registered
    Office
	MUST
    HAVE LIMITED	05101019	Units
    3-8
		 	Bury
    South Business Park
	 	 	Riverview
    Close
	 	 	Dumers
    Lane
	 	 	Manchester
	 	 	M26
    2AD
	E-CIGS
    UK HOLDING COMPANY LIMITED	09031860	25
    Harley Street
		 	London
		 	W1G
    9BR
		 	 
	 	 	 
	VAPESTICK
    HOLDINGS LIMITED	07777233	73
    Cornhill
		 	London
		 	EC3V
    3QQ
	 	 	 
	HARDWIRE
    INTERACTIVE ACQUISITION COMPANY	Delaware
    5543781	Corporations
    USA, LLC
		 	341
    Raven Circle
		 	Wyoming,
    DE
		 	County
    of Kent, 19934
	 	 	USA
	VICTORY
    ELECTRONIC CIGARETTES,
    INC.	Nevada
    E0117932013-0	Nevada
    Agency and Transfer Company
		 	50 Wes
    t Liberty Street
		 	Suite
    880
	 	 	Reno
    Nevada
	 	 	County
    of Washoe, 89501
	 	 	USA
	VCIG
    LLC	Delaware
    5477751	Corporations
    USA, LLC
	 	 	341
    Raven Circle
	 	 	Wyoming,
    DE
	 	 	County
    of Kent, 19934
	 	 	USA
	FIN
    BRANDING GROUP, LLC	Illinois
    03606309	National
    Registered Agents Inc.
		 	208
    South LaSalle Street
	 	 	Suite
    814
	 	 	Chicago
	 	 	Illinois,
    60604
	 	 	USA

 

    	- 26
                                                                                                                                                                                               -

    	 

    
     

SCHEDULE
2 - SENIOR CREDITORS

 

	Name	Address
	CALM
    WATERS PARTNERSHIP	115S.
    84th Street

    Milwaukee

    Wisconsin 53214

    USA
	TIBURON
    OPPORTUNITY FUND, L.P. acting in its capacity as agent for itself and each of the lenders signatory to the Co-Investor Credit
    Agreement.	13313
Point Richmond Beach Road NW

Gig Harbor

WA 98332

USA

	 	 

 

    	- 27
                                                                                                                                                                                               -

    	 

    

 

SCHEDULE
3 - SUBORDINATED CREDITORS

 

	Name	Address
	DAVID
    STEVEN LEVIN	7
    Ringley Chase
	 	Whitefield
	 	Manchester
	 	M45
    7UA
	 	 
	MELANIE
    LEVIN	7
    Ringley Chase
	 	Whitefield
	 	Manchester
	 	M45
    7UA
	 	 
	MIGUEL
    CARLOS CORRAL	1
    Sergeants Lane
	 	Whitefield
	 	M45
    7TR
	 	 
	DAVID
    RYDER	6
    Greenock Close
	 	Ladybridge
	 	Bolton
	 	BL3
    4UD

 

    	- 28
                                                                                                                                                                                               -

    	 

    

 

SCHEDULE
4 - SENIOR DEBT DOCUMENTS

 

Part
1: Senior lending documents

 

Senior
Credit Agreements.

 

Part
2: Senior Security Documents

 

Share
charge between the Borrower and Calm Waters Partnership in respect of the Borrower’s shares in Must Have Limited, dated
on or about the date of this deed. 

 

Share
charge between the Borrower and Calm Waters Partnership in respect of the Borrower’s shares in Vapestick Holdings Limited,
dated on or about the date of this deed. 

 

Share
charge between the Borrower and Calm Waters Partnership in respect of the Borrower’s shares in E-Cigs UK Holding Company
Limited, dated on or about the date of this deed. 

 

Guarantee
between each Guarantor and Calm Waters Partnership, dated on or about the date of this deed.

 

Debenture
between Must Have Limited and Calm Waters Partnership, dated on or about the date of this deed.

 

Debenture
between Vapestick Holdings Limited and Calm Waters Partnership, dated on or about the date of this deed.

 

Debenture
between E-Cigs UK Holding Company Limited and Calm Waters Partnership, dated on or about the date of this deed.

 

    	- 29
                                                                                                                                                                                               -

    	 

    

 

SCHEDULE
5 - JUNIOR DEBT DOCUMENTS

 

Part
1: Junior lending documents

 

Junior
Loan Notes. 

 

Junior
Loan Note instrument. 

 

Registration
Rights Agreement. 

 

Share
Purchase Agreement.

 

Part
2: Junior Security Documents

 

Guarantee
between Must Have Limited and the Subordinated Creditors, dated 22 April 2014.

 

Debenture
between Must Have Limited and the Junior Security Trustee, dated 22 April 2014. 

 

Share
charge between the Borrower and the Junior Security Trustee in respect of the Borrower’s shares in Must Have Limited, dated
on or about the date of this deed.

 

    	- 30
                                                                                                                                                                                               -

    	 

    

 

	 	 	 	 
	Borrower	 	 	 
	 	 	 	 
	EXECUTED as a deed on behalf of ELECTRONIC CIGARETTES INTERNATIONAL GROUP, LTD., a Nevada corporation by	)	 	 
	)	 	 
	)	 	 
	)	 
	Philip Anderson	)	 
	 	)	 	Authorised Signatory 
	 	)	 	 
	 	)	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR
    are] acting under the authority of the corporation	)	 	 Witness
	)	 	 
	)	 	 
	 	 	 
	 	 	 	 
	Guarantors	 	 	 
	 	 	 	 
	EXECUTED as a deed on behalf of VICTORY ELECTRONIC CIGARETTES, INC., a Nevada corporation by	)	 	 
	)	 	 
	)	 	 
	)	 
	Philip Anderson	)	 
	 	)	 	Authorised Signatory 
	 	)	 	 
	 	)	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR
    are] acting under the authority of the corporation	)	 	Witness
	)	 	 
	)	 	 
	 	 	 
	 	 	 	 
	EXECUTED as a deed on behalf of VCIG LLC, a Delaware corporation by	)	 	 
	)	 	 
	 	)	 
	Philip Anderson	)	 
	 	)	 	Authorised Signatory
	 	)	 	 
	 	)	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR
    are] acting under the authority of the corporation	)	 	Witness
	)	 	 
	 	 	 
	 	 	 

 

    	- 31 -

    	 

    

	 	 	 	 
	EXECUTED as a deed on behalf of FIN BRANDING GROUP, LLC, an Illinois corporation by	)	 	 
	)	 	 
	)	 
	Philip Anderson	)	 
	 	)	 	Authorised Signatory 
	 	)	 	 
	 	)	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR
    are] acting under the authority of the corporation	)	 	Witness
	)	 	 
	)	 	 
	 	 	 
	 	 	 	 
	EXECUTED as a deed on behalf of HARDWIRE INTERACTIVE ACQUISITION COMPANY, a Delaware corporation by	)	 	 
	)	 	 
	)	 	 
	)	 
	Philip Anderson	)	 
	 	)	 	Authorised Signatory 
	 	)	 	 
	 	)	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR
    are] acting under the authority of the  corporation	)	 	Witness
	)	 	 
	)	 	 
	 	 	 
	 	 	 	 
	EXECUTED as a deed by MUST HAVE LIMITED acting by	)	 	 
	)	 
	Philip Anderson	)	 
	a director

 in the presence of	)	 	Director
	)	 	 

	 	 	 
	Witness:	 	 
	 	 	 
	Signature:	 

 

	Name:	Ali Panjwani	 

 

	Address:	c/o PRYOR CASHMAN LLP	 
	7 Times Square, New York, NY 10036	 

 

	Occupation:	Attorney	 

 

    	- 32 -

    	 

    

 

	 	 	 	 
	EXECUTED as a deed by VAPESTICK HOLDINGS LIMITED acting by	)	 	 
	)	 
	Philip Anderson	)	 
	a director	)	 	Director
	in the presence of	)	 	 

	 	 	 
	Witness:	 	 
	 	 	 
	Signature:	 

 

	Name:	Ali Panjwani	 

 

	Address:	c/o PRYOR CASHMAN LLP	 
	7 Times Square, New York, NY 10036	 

 

	Occupation:	Attorney	 

 

	 	 	 	 
	
        EXECUTED as a deed by E-CIGS UK HOLDING
        COMPANY LIMITED acting

        

        by 
	)	 	 
	)	 	 
	)	 
	Philip Anderson	)	 
	a director	)	 	Director
	in the presence of	)	 	 

 

	 	 	 
	Witness:	 	 
	 	 	 
	Signature:	 

 

	Name:	Ali Panjwani	 

 

	Address:	c/o PRYOR CASHMAN LLP	 
	7 Times Square, New York, NY 10036	 

 

	Occupation:	Attorney	 

 

    	- 33 -

    	 

    

 

	 	 	 	 
	Senior Creditors	 	 	 
	 	 	 	 
	EXECUTED as a deed on behalf of CALM  WATERS PARTNERSHIP., a Wisconsin general partnership, acting by Susan A. Hollister 

As power of attorney for	)	 	 
	)	 
	)	 
	)	 
	)	 
	 	)	 	Authorised Signatory
	Richard S. Strong	)	 	 
	Managing Partner	)	 	 
	Calm
    Waters Partnership	)	 	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR are] acting  under  the  authority  of  the partnership	)	 	Authorised Signatory
	)	 	 
	)	 	 
	 	 	 
	 	 	 	 
	EXECUTED as a deed on behalf of TIBURON OPPORTUNITY FUND, L.P., a Delaware limited partnership, acting by	 	 	 
	)	 	 
	)	 	 
	)	 	 
	 	)	 	 
	 	)	 	Authorised Signatory
	 	)	 	 
	 	)	 	 
	 	)	 	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR are] acting  under  the  authority  of  the partnership	)	 	Authorised Signatory
	)	 	 
	)	 	 
	)	 	 
	 	 	 	 
	Subordinated Creditors	 	 	 
	 	 	 	 
	EXECUTED as a deed by MELANIE LEVIN 

in the presence of	 	 	 
	)	 	 
	)	 	Melanie Levin

	 	 	 	 	 	 	 	 
	Witness:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Signature:	 	 	 	 
	 	 	 	 	 	 	 	 
	Name:	 	 	 	 
	 	 	 	 	 	 	 	 
	Address:	 	 	 	 
	 	 	 	 	 	 	 	 
	Occupation:	 	 	 	 

 

    	- 34 -

    	 

    

 

	 	 	 	 
	Senior Creditors	 	 	 
	 	 	 	 
	EXECUTED as a deed on behalf of CALM  WATERS  PARTNERSHIP.,  a Wisconsin general partnership, acting by 	)	 	 
	)	 
	)	 
	)	 
	)	 
	 	)	 	Authorised Signatory
	 	)	 	 
	 	)	 	 
	 	)	 	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR are] acting  under  the  authority  of  the partnership	)	 	Authorised Signatory
	)	 	 
	)	 	 
	 	 	 
	 	 	 	 
	
        EXECUTED
        as a deed on behalf of TIBURON OPPORTUNITY FUND, L.P., a Delaware limited partnership, acting by

        

        Peter Batel
	 	 	 
	)	 
	)	 
	)	 
	)	 
	 	)	 	Authorised Signatory
	 	)	 	 
	 	)	 	 
	 	)	 
	 	)	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR are] acting  under  the  authority  of  the partnership	)	 	Witness
	)	 	 
	)	 
	)	 
	 	 	 
	Subordinated Creditors	 	 	 
	 	 	 	 
	EXECUTED as a deed by MELANIE LEVIN 

in the presence of	 	 	 
	)	 	 
	)	 	Melanie Levin

	 	 	 	 	 	 	 	 
	Witness:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Signature:	 	 	 	 
	 	 	 	 	 	 	 	 
	Name:	 	 	 	 
	 	 	 	 	 	 	 	 
	Address:	 	 	 	 
	 	 	 	 	 	 	 	 
	Occupation:	 	 	 	 

 

    	- 35 -

    	 

    

 

	 	 	 	 
	Senior Creditors	 	 	 
	 	 	 	 
	EXECUTED as a deed on behalf of CALM  WATERS  PARTNERSHIP.,  a Wisconsin general partnership, acting by 	)	 	 
	)	 
	)	 
	)	 
	)	 
	 	)	 	Authorised Signatory
	 	)	 	 
	 	)	 	 
	 	)	 	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR are] acting  under  the  authority  of  the partnership	)	 	Authorised Signatory
	)	 	 
	)	 	 
	 	 	 
	 	 	 	 
	EXECUTED as a deed on behalf of TIBURON OPPORTUNITY FUND, L.P., a Delaware limited partnership, acting by	 	 	 
	)	 	 
	)	 	 
	)	 	 
	 	)	 	 
	 	)	 	Authorised Signatory
	 	)	 	 
	 	)	 	 
	 	)	 	 
	being [a] person[s] who, in accordance with the laws of that territory, [is OR are] acting  under  the  authority  of  the partnership	)	 	Authorised Signatory
	)	 	 
	)	 	

Duly Authorised Attorney
	)	 
	 	 	 
	Subordinated Creditors	 	 
	 	 	 
	EXECUTED as a deed by MELANIE LEVIN 

in the presence of	 	 
	)	 
	)	 	Melanie Levin

	 	 	 	 	 	 	 	 
	Witness:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Signature:	 		 	 	 
	 	 	 	 	 	 	 	 
	Name:	 	 	 	Ian Riggs	 	 	 
	 	 	 	 	 	 	 	 
	Address:	 	 	50 Fountain St, Manchester	 	 	 
	 	 	 	 	 	 	 	 
	Occupation:	Solicitor	 	 	 

 

    	- 36 -

    	 

    

 

 

 

	 	 	 	 	 	 	 	 
	EXECUTED as a deed by DAVID	)	 	
	STEVEN LEVIN	)	 	David Steven Levin
	in the presence of	 	 	 
	 	 	 	 	 	 	 	 
	Witness:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Signature:		 	 	 
	 	 	 	 	 	 	 	 
	Name:	 	 	Ian Riggs	 	 	 
	 	 	 	 	 	 	 	 
	Address:	 	50 Fountain St, Manchester	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Occupation:	Solicitor	 	 	 
	 	 	 	 	 	 	 	 
	EXECUTED as a deed by DAVID	)	 	
	RYDER	)	 	David Ryder
	in the presence of		 	Duly Authorised Attorney
	 	 	 	 	 	 	 	 
	Witness:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Signature:		 	 	 
	 	 	 	 	 	 	 	 
	Name:	 	 	Ian Riggs	 	 	 
	 	 	 	 	 	 	 	 
	Address:	 	50 Fountain St, Manchester	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Occupation:	Solicitor	 	 	 
	 	 	 	 	 	 	 	 
	EXECUTED as a deed by MIGUEL	)	 	
	CARLOS CORRAL	)	 	Miguel Carlos Corral
	in the presence of	 	 	 
	 	 	 	 	 	 	 	 
	Witness:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Signature: 		 	 	 
	 	 	 	 	 	 	 	 
	Name: 	 	 	Ian Riggs	 	 	 
	 	 	 	 	 	 	 	 
	Address: 	 	50 Fountain St, Manchester	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Occupation: 	Solicitor	 	 	 

 

    	- 37 -

    	 

    

 

	 	 	 	 	 	 	 	 
	Junior Security Trustee	 	 
	 	 	 	 	 	 	 	 
	EXECUTED as a deed by MIGUEL	)	 	
	CARLOS CORRAL	)	 	Miguel Carlos Corral
	in the presence of	 	 	 
	 	 	 	 	 	 	 	 
	Witness:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Signature: 		 	 	 
	 	 	 	 	 	 	 	 
	Name: 	 	Ian Riggs	 	 	 
	 	 	 	 	 	 	 	 
	Address: 	50 Fountain St	 	 	 
	 	 	 	 	 	 	 
	 	 Manchester	 	 	 
	 	 	 	 	 	 	 	 
	Occupation: 	Solicitor	 	 	 

 

 

 

-38-Exhibit 10.5

 

Electronic
Cigarettes International Group, Ltd.

 

SECURITIES
PURCHASE AGREEMENT 

 

April
27, 2015

 

    	 

    	 

    

 

SECURITIES
PURCHASE AGREEMENT

 

Electronic
Cigarettes International Group, Ltd. 

 

This
Securities Purchase Agreement (this “Agreement”) is made by and between Electronic Cigarettes International
Group, Ltd., a Nevada corporation (the “Company”) and Man FinCo Limited,
a company incorporated as an offshore company under the regulations of the Jebel Ali Free Zone Authority with registered number
163050 and having its registered office at PO Box 9275, c/o Al Tamimi & Company, Advocates and Legal Consultants, 9th Floor,
Dubai World Trade Centre, Dubai, United Arab Emirates (“Man FinCo” or the “undersigned”). 

 

W
I T N E S S E T H:

 

Whereas,
the Company, Man FinCo, and certain other lenders are entering
into that certain Credit Agreement, dated as of April 27, 2015 (the “Credit Agreement”);

 

Whereas,
in order to induce Man FinCo to enter into the Credit Agreement
and to agree to amend the provisions of the Securities Purchase Agreement dated as of July 3, 2014 (the “2014 SPA”)
as described in Section E(3) below, subject to the terms and conditions set forth herein (this Agreement and the other agreements
executed and delivered by the parties at the Closing (as defined below), the “Transaction Documents”), and
pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the
“1933 Act”) and Regulation S promulgated thereunder, the Company desires to issue to ManFinCo, and ManFinCo
desires to receive from the Company, shares of the Company’s common stock, par value $0.001 (“Common Stock”);

 

Now,
Therefore, in consideration of the foregoing premises and the
covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

A.          General. 

 

(1)          The
undersigned hereby agrees to receive from the Company, and the Company agrees to issue to the undersigned, 19,666,667 shares of
Common Stock (the “Shares”). 

 

(2)          Subject
to the terms and conditions of this Agreement, the closing of the issuance of the Shares (the “Closing”) shall
take place remotely via the exchange of documents and signatures on the date hereof, or such earlier date as may be mutually agreed
to by the Company and Man FinCo (the “Closing Date”). At the Closing:

 

    	 

    	 

    

 

(a)          the
Company shall deliver to Man FinCo a certificate, as of the most recent practicable date, as to the corporate good standing of
the Company issued by the Secretary of State of the State of Nevada;

 

(b)          the
Company shall deliver to Man FinCo a copy of the Articles of Incorporation of the Company, as amended and in effect as of the
Closing Date, certified by the Secretary of State of the State of Nevada, which have been filed by the Company with the Securities
and Exchange Commission’s (“SEC”) EDGAR system;

 

(c)          the
Company shall deliver to Man FinCo a Certificate of the Secretary of the Company attesting as to (i) the By-laws of the Company;
(ii) the signatures and titles of the officers of the Company executing this Agreement or any of the other Transaction Documents;
and (iii) resolutions of the Board of Directors of the Company, authorizing and approving all matters in connection with this
Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby;

 

(d)          Pryor
Cashman LLP and Fennemore Craig, P.C., counsel for the Company, shall deliver to Man FinCo opinions, dated the Closing Date, in
substantially the forms attached hereto as Exhibit C-1 and C-2, respectively; and

 

(e)          the
Company shall deliver to the Purchaser a copy of a certificate for the Shares, registered in the name of Man FinCo, or irrevocable
instructions from the Company to the Company’s transfer agent instructing the transfer agent to issue such certificate upon
the Closing.

 

B.          The
Common Stock offered will not be registered under the 1933 Act 

 

The
undersigned acknowledges that (i) the Common Stock will not be registered under the 1933 Act, or the securities laws of any state
in the United States of America or any state, municipality, or country outside of the United States of America; (ii) absent an
exemption, any transfer of the Common Stock would require registration; (iii) the shares of Common Stock are being offered and
sold in reliance upon exemptions from registration contained in the 1933 Act and applicable state laws; and (iv) the Company’s
reliance upon such exemption is based in part upon the undersigned’s representations, warranties and agreements contained
in this Agreement. 

 

C.          Representations,
Warranties, Acknowledgements and Agreements of Man FinCo 

 

The
undersigned represents, warrants, acknowledges and covenants to the Company as follows: 

 

(1)          The
undersigned has received and carefully read the Transaction Documents. In making the decision to invest in the Common Stock, the
undersigned has relied solely upon the information provided by the Company in the Transaction Documents. To the extent necessary,
the undersigned has discussed with its counsel the representations, warranties and agreements which the undersigned makes by signing
this Agreement, the applicable limitations upon the undersigned’s resale of the Common Stock, and the risks inherent in
the investment made in the Common Stock, including, without limitation, the suitability thereof, and the tax and legal consequences
of this Agreement. The undersigned has made an independent evaluation of the merits of the investment and acknowledges the high
risk nature of the investment. The undersigned disclaims reliance on any statements made or information provided by any person
or entity in the course of the undersigned’s consideration of an investment in the Common Stock other than the Transaction
Documents. 

 

    	- 2 -

    	 

    

 

(2)          The
undersigned is acquiring the Common Stock for the undersigned’s own account, with the intention of holding the Common Stock
for investment purposes, with no present intention of dividing or allowing others to participate in this investment or of reselling
or otherwise participating, directly or indirectly, in a distribution of the Common Stock; and shall not make any sale, transfer
or other disposition of the Common Stock without registration under the 1933 Act and applicable state securities laws unless an
exemption from registration is available under those laws. The undersigned is not acquiring any portion of the Common Stock, or
any interest therein, on behalf of another person. No person other than the undersigned has any direct or indirect beneficial
interest in the Common Stock subscribed for hereunder by the undersigned. The undersigned is not an underwriter or dealer of the
Common Stock; and is not a distributor or participating, pursuant to contractual agreement, in the distribution of the Common
Stock.

  

(3)          The
undersigned’s overall commitment to investments which are not readily marketable is not disproportionate to the undersigned’s
net worth, and the undersigned’s investment in the Common Stock will not cause such overall commitment to become excessive.

  

(4)          The
undersigned is not a “U.S. Person” as that term is defined in Rule 902(k)(1) of Regulation S, promulgated under
the 1933 Act, and was not formed by a U.S. Person principally for the purpose of investing in securities not registered under
the Securities Act. Man FinCo is not required to be registered as a broker-dealer under Section 15 of the Securities Exchange
Act of 1934 as amended (the “Exchange Act”) and is not a broker-dealer. The undersigned is acquiring the Common
Stock for investment purposes and has no present intention to sell the Common Stock in the United States or to a U.S. Person or
for the account or benefit of a U.S. Person either now or promptly after the expiration of the “distribution compliance
period.” as that term is defined in Rule 903 of Regulation S. 

 

(5)          On
the date this Agreement was executed and delivered, the undersigned was outside the United States; to the knowledge of Man FinCo,
no offer to purchase the Common Stock was made in the United States; and the transactions contemplated hereby have not been and
will not be pre-arranged by the undersigned with a purchaser located in the United States or who is a U.S. Person. 

 

(6)          The
undersigned will resell the Common Stock only in accordance with the provisions of Regulation S, pursuant to registration under
the 1933 Act, or pursuant to an available exemption from registration, and the undersigned shall not engage in hedging transactions
with regard to the Common Stock unless in compliance with the 1933 Act. 

 

    	- 3 -

    	 

    

 

(7)          The
undersigned has been informed and understands that the Common Stock is subject to certain restrictions on transfer, which include
the following: (A) the Common Stock is deemed to be “restricted securities” within the meaning of Rule 144
under the Act; and (B) that the Common Stock will bear a restrictive legend. 

 

(8)          The
undersigned understands that the Common Stock is being offered and sold in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and that the Company is relying on the truth and accuracy of the
representations, warranties, and agreements of the undersigned set forth herein in order to determine the applicability of such
exemptions and the suitability of the undersigned to acquire the Common Stock. 

 

(9)          The
undersigned is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of
receiving the Common Stock, and to make an informed decision relating thereto. At the time the undersigned was offered the Shares,
it was, and at the date hereof it is, an “accredited investor” as defined in Rule 501(a) under the 1933 Act.

 

(10)        The
undersigned understands that in the SEC’s view, the statutory basis for the exemption claimed for this transaction would
not be available if the issuance of the Shares, though in technical compliance with Regulation S, is part of a plan or scheme
to evade the registration provisions of the Act; and the undersigned confirms that its purchase is not part of any such plan or
scheme. 

 

(11)        The
undersigned has not, and will not, engage in any activity for the purpose of, or that could reasonably be expected to have the
effect of, conditioning the market in the United States for any of the securities sold hereunder.

  

(12)        The
undersigned, in electing to subscribe for the Common Stock hereunder, has relied solely upon the representations and warranties
of the Company set forth in this Agreement and on independent investigation made by him and his representatives, if any. The undersigned
has been given no oral or written representation or assurance from the Company or any representative of the Company other than
as set forth in this Agreement or in a document executed by a duly authorized representative of the Company making reference to
this Agreement. The undersigned has received answers and information in response to its investigation that it deems to be complete
and satisfactory. The undersigned shall keep confidential and not disclose to any third party any and all confidential information
and documents received from or on behalf of the Company.

 

(13)        The
address shown under the undersigned’s signature at the end of this Agreement is the undersigned’s principal business
address.

 

    	- 4 -

    	 

    

 

(14)        The
undersigned acknowledges that Regulation S restricts the offer or sale of the Common Stock to a U.S. Person or for the account
or benefit of a U.S. Person for a period of one year commencing on the Closing Date. Rule 902(f) and Rule 903 govern the forty
day distribution compliance period. In the event that multiple purchasers are accepted by the Company, the distribution compliance
period shall begin only after the Closing Date. The undersigned understands that the Company will refuse to register any transfer
of the Common Stock not made in accordance with the provisions of Regulation S, pursuant to registration under the Act, or pursuant
to an available exemption from registration, and it will instruct its transfer agent to place a stop transfer order on any certificates
representing such Common Stock, which are attempted to be transferred contrary to the above conditions.

 

(15)        The
certificates representing the Common Stock that the undersigned will receive will contain a legend substantially as follows:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO SECTION 4(A)(2) OF THE SECURITIES ACT OF 1933, AS AMENDED
(“ACT”) AND REGULATION S PROMULGATED THEREUNDER AND HAVE NOT BEEN REGISTERED UNDER THE ACT. TRANSFER OF THESE SECURITIES
IS PROHIBITED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM REGISTRATION, AND HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.
THESE SECURITIES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OF, A “U.S. PERSON”
(AS THAT TERM IS DEFINED IN REGULATION S) EXCEPT IN ACCORDANCE WITH REGULATION S OR ANY OTHER APPLICABLE LAW, REGULATION OR RULE
GOVERNING SUCH RESALE.”

 

(16)        The
undersigned has been given the opportunity to ask questions of and receive answers from the Company and its executive officers
concerning the business and operations of the Company and the terms, provisions, and conditions of the issuance of the Shares,
including, without limitation, the suitability of this investment and to obtain any such additional information and engage in
such due diligence that the undersigned deems necessary or advisable, or such other information as the undersigned desired in
order to evaluate an investment in the Company; and the undersigned availed itself of such opportunity to the extent considered
appropriate in order to evaluate the merits and risks of the proposed investment. 

 

(17)        The
undersigned is not subscribing for the Common Stock as a result of or subsequent to any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast over television or radio, any seminar or meeting. 

 

(18)        Unless
otherwise indicated on a separate sheet of paper that details any such affiliation submitted by the undersigned to the Company
along with this completed Agreement, the undersigned is not affiliated directly or indirectly with a member broker-dealer firm
of the Financial Industry Regulatory Authority (“FINRA”) as an employee, officer, director, partner or shareholder
or as a relative or member of the same household of an employee, director, partner or shareholder of a FINRA member broker-dealer
firm. 

 

    	- 5 -

    	 

    

 

D.          Representations
Warranties, Acknowledgements and Agreements of the Company 

 

In
order to induce the undersigned to execute and deliver this Agreement, the Company represents, warrants, and covenants to the
undersigned as follows: 

 

(1)          The
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada. The Company
has full power and authority to own its properties and to carry on its business as currently conducted. The Company is duly qualified
as a foreign corporation to do business and is in good standing in every jurisdiction in which such qualification is required,
whether by the nature of the business conducted, property owned or otherwise, other than those jurisdictions in which the failure
so to qualify or be in good standing would not, individually or in the aggregate, have a Material Adverse Effect. “Material
Adverse Effect” means any material adverse effect on the business, operations, properties, assets, condition (financial
or otherwise), prospects or results of operations of the Company, taken as a whole.

 

(2)          The
execution, delivery and performance by the Company of this Agreement and the other Transaction Documents and the offer and sale
of Common Stock contemplated hereby shall, assuming the representations and warranties of the undersigned are correct, be in compliance
with the exemptions from registration set forth in Regulation S and/or Section 4(a)(2) of the 1933 Act and applicable state securities
“blue sky” laws, and the Company, in reliance on the representations and warranties of the undersigned, shall make
all filings required to qualify for such exemptions. No additional permit, license, exemption, consent, authorization or approval
of, or the giving of any notice by the Company to, any governmental or regulatory body, agency or authority is required in order
for the Company to execute, deliver and perform its obligations hereunder, which has not been made, or will not when required
be made, by the Company. No notice by the Company to any third party, and no consent or approval of any third party, of the Company’s
execution, delivery and performance of this Agreement and the other Transaction Documents is required which has not been given
or obtained. 

 

(3)          The
Company has the requisite power and authority to execute and deliver this Agreement and the other Transaction Documents, and perform
its obligations herein and therein, and consummate the transactions contemplated hereby and thereby. This Agreement is and each
other Transaction Document will be a valid, legal and binding obligation of the Company enforceable against the Company in accordance
with their respective terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity (regardless of
whether such enforcement is considered in a proceeding at law or at equity).

 

    	- 6 -

    	 

    

 

(4)          The
consummation by the Company of the transactions contemplated hereby and by the other Transaction Documents and issuance of the
Common Stock will not result in any conflict with, or result in a violation or breach of any of the terms, conditions or provisions
of, or constitute (with or without due notice, lapse of time or both) a default under, or give rise to a right of termination,
cancellation or acceleration of any obligation under, or result in the creation of any lien upon any of the properties or assets
of the Company under, (i) its Articles of Incorporation; (ii) any indenture, mortgage, loan or credit agreement, note, contract,
franchise, lease or other agreement or instrument to which the Company is a party or by which it or any of them may be bound,
or to which any of the property or assets of the Company is subject; or (iii) to its knowledge, any law, rule, regulation, order,
judgment or decree (including United States federal and state securities laws and regulations and the rules and regulations of
FINRA or by which any property or asset of the Company is bound).

 

(5)          The
authorized capital stock of the Company is as set forth in the Company SEC Documents (as defined below). As of the date hereof,
the outstanding capital stock of the Company is as set forth on Schedule D(5) to this Agreement. Except as set forth in
Schedule D(5), (i) no subscription, warrant, option, convertible security or other right (contingent or otherwise) to purchase
or acquire any shares of capital stock of the Company is authorized or outstanding, (ii) the Company has no obligation (contingent
or otherwise) to issue any subscription, warrant, option, convertible security or other such right, or to issue or distribute
to holders of any shares of its capital stock any evidences of indebtedness or assets of the Company, (iii) the Company has no
obligation (contingent or otherwise) to purchase, redeem or otherwise acquire any shares of its capital stock or any interest
therein or to pay any dividend or to make any other distribution in respect thereof, and (iv) there are no outstanding or authorized
stock appreciation, phantom stock or similar rights with respect to the Company. The Shares represent 4.98% of the Company’s
total issued and outstanding Common Stock on a fully diluted and as-converted basis, after giving effect to the closings of all
of the transactions contemplated by this Agreement, the Credit Agreement and all other agreements referenced or in connection
with the Credit Agreement and taking into account any options, warrants or other convertible securities as though fully exercised
or converted.

 

(6)          There
is no action, suit, proceeding, inquiry, notice of violation or investigation before or by any court, arbitrator, public board,
government agency, regulatory authority, self-regulatory organization or body pending or, to the knowledge of the Company, threatened
against the Company, any officers or managers of the Company in their capacities as such, or any of their respective assets or
properties.

 

    	- 7 -

    	 

    

 

(7)          The
Company has made or filed all United States federal, state and local income and all other tax returns, reports and declarations
required by any jurisdiction to which it is subject and all such returns, reports and declarations are true, correct and accurate
in all material respects. The Company has paid all taxes and other governmental assessments and charges, shown or determined to
be due on such returns, reports and declarations, except those being contested in good faith, for which adequate reserves have
been established, in accordance with GAAP. No taxing authority has given notice of an assertion, or is threatening to assert,
against the Company any deficiency or claim for additional taxes or interest thereon or penalties in connection therewith. 

 

(8)          The
Company is not in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained
in any of its Material Contracts, and no condition exists which, with the giving of notice or the lapse of time or both, could
constitute such a default, except where the consequences, direct or indirect, of such default or defaults, or condition or conditions,
if any, could not reasonably be expected to have a Material Adverse Effect. “Material Contracts” means any
and all contracts or agreements to which the Company is a party and which the Company has entered into since June 25, 2013 and
which are filed as exhibits to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. 

 

(9)          The
Common Stock to be issued to the undersigned pursuant to this Agreement, when issued and delivered in accordance with the terms
of this Agreement, shall be duly authorized, validly issued, fully paid and non-assessable. 

 

(10)        The
Common Stock offered hereby is being offered and sold pursuant to an exemption from the registration requirements of the 1933
Act and applicable state securities laws for nonpublic offerings. To this end, the Company has not offered or sold the Common
Stock to any person in the United States, or, to the best knowledge of the Company, to any identifiable groups of U.S. citizens
abroad, or to any U.S. Person as that term is defined in Regulation S, nor has the Company offered or sold the Common Stock for
the account or benefit of any U.S. Person. At the time of the execution and delivery of this Agreement, the Company and/or its
agents reasonably believed that the undersigned was outside the United States and was not a U.S. Person. 

 

(11)        The
Company and/or its agents believe that the transaction contemplated hereby has not been pre-arranged with a buyer in the United
States. 

 

(12)        The
Company has not conducted any “directed selling efforts” as that term is defined in Rule 902 of Regulation
S nor has Company conducted any general solicitation relating to the offer and sale of the Common Stock to persons resident within
the United States or any other U.S. Person as that term is defined in Rule 902 of Regulation S.

 

    	- 8 -

    	 

    

 

(13)        As
required by Regulation S, the Company must agree, and does hereby agree, that it will refuse to register any transfer of the Common
Stock not made in accordance with the provisions of Regulation S, pursuant to registration under the 1933 Act, or pursuant to
an available exemption from registration; provided, however, that if the securities are in bearer form or foreign law prevents
the Company from refusing to register securities transfers, other reasonable procedures (such as the legend described above) are
implemented to prevent any transfer of the securities not made in accordance with the provisions of Regulation S.

 

(14)        Since
June 25, 2013, the Company has filed all forms, reports, certifications and other documents required to be filed by the Company
with the SEC since it became an SEC reporting company. All such registration statements, forms, reports, certifications and other
documents (including those that the Company may file after the date hereof until the Closing), as the same may be amended from
time to time, are referred to herein as the “Company SEC Documents.” All of the Company SEC Documents are publicly
available on the SEC’s EDGAR system. Except as disclosed on the SEC’s EDGAR system, the Company SEC Documents (x)
were filed on a timely basis, (y) at the time filed, were prepared in compliance with the applicable requirements of the 1933
Act and the Exchange Act, as the case may be, and the rules and regulations of the SEC thereunder applicable to such Company SEC
Documents, and (z) did not at the time they were filed contain any untrue statement of a material fact or omit to state a material
fact required to be stated in such Company SEC Documents or necessary in order to make the statements in such Company SEC Documents,
in the light of the circumstances under which they were made, not misleading.

 

(15)        Each
of the consolidated financial statements (including, in each case, any related notes and schedules) contained or to be contained
in the Company SEC Documents at the time filed (i) complied as to form with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto (including, without limitation, Regulations S-X), (ii) were prepared in
accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis
throughout the periods involved and at the dates involved (except as may be indicated in the notes to such financial statements
or, in the case of unaudited statements, as permitted by the SEC on Form 10-Q under the Exchange Act), and (iii) fairly presented
the consolidated financial position of the Company as of the dates thereof and the consolidated results of its operations and
cash flows for the periods indicated, consistent with the books and records of the Company, except that the unaudited interim
financial statements were or are subject to normal and recurring year-end adjustments which were not or will not be material in
amount or effect.

 

(16)        Except
as disclosed in the Company SEC Documents filed prior to the date of this Agreement, and except for normal and recurring liabilities
incurred since the latest balance sheet included in the Company SEC Documents in the ordinary course of business, the Company
does not have any liabilities, either accrued, contingent or otherwise (whether or not required to be reflected in financial statements
in accordance with GAAP), and whether due or to become due that, individually or in the aggregate, are reasonably likely to have
a Company Material Adverse Effect.

 

    	- 9 -

    	 

    

 

(17)        Except
as set forth in the Company SEC Documents, there is no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company, any subsidiary thereof or any of their
respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal,
state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the
legality, validity or enforceability of any of the Transaction Documents or the Common Stock or (ii) could, if there were an unfavorable
decision, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any subsidiary thereof, nor any
director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal
or state securities laws or a claim of breach of fiduciary duty which could, if there were an unfavorable decision, reasonably
be expected to result in a Material Adverse Effect.

 

(18)        The
Company and its subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications,
service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar
rights as described in the Company SEC Documents, as necessary or required for use in connection with their respective businesses
and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
Neither the Company nor any subsidiary thereof has received a notice (written or otherwise) that any of, the Intellectual Property
Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years
from the date of this Agreement. Except as set forth in the Company SEC Documents, neither the Company nor any subsidiary thereof
has received, since the date of the latest audited financial statements included within the Company SEC Documents, a written notice
of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any person,
except as could not have or reasonably be expected to not have a Material Adverse Effect. Except as set forth in the Company SEC
Documents, to the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement
by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do
so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(19)        There
is no transaction, arrangement, or other relationship between the Company and an unconsolidated or other off balance sheet entity
that is required to be disclosed by the Company in its Exchange Act filings and is not so disclosed and could be reasonably likely
to have a Material Adverse Effect.

 

    	- 10 -

    	 

    

 

E.          Other
Agreements

 

(1)          Until
such time as Man FinCo owns no shares of Common Stock, the Company shall timely file with the SEC all Company SEC Documents as
are specified in the 1933 Act or the Exchange Act and the Company shall not terminate its status as an issuer required to file
reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would no longer require or otherwise
permit such termination. Each Company SEC Document to be filed by the Company, when filed with the SEC, will comply with all applicable
requirements of the 1933 Act or the Exchange Act and will not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. The financial statements of the Company to be included in each Company SEC Document
to be filed by the Company will comply as to form, as of the date of its filing with the SEC, with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto, will be prepared in accordance with GAAP (except, in
the case of unaudited statements, as permitted by the SEC) and will fairly present in all material respects the consolidated financial
position of the Company as of the dates thereof and the consolidated results of its operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal year-end audit adjustments, which will not be material, consistent
with past practices and consistently applied.

 

(2)          In
the event that Man FinCo shall beneficially own 5% or more of the Company’s Common Stock, Man FinCo shall agree to execute
a customary lock up agreement as requested by the underwriters in connection with any underwritten public offering for the 180-day,
or such shorter period as the underwriter may consent to, period following the date of the final prospectus in connection therewith.

 

(3)          Man
FinCo and the Company agree to amend the 2014 SPA to delete Sections A(2) and A(3) thereof.

 

F.          Miscellaneous 

 

(1)          
Notwithstanding the place where this Agreement may be executed by any of the parties hereto, all of the terms, provisions, and
conditions hereof 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. Any dispute that may arise out of or in connection with this Agreement shall be adjudicated
before a court located in New York City and the parties hereto submit to the exclusive jurisdiction and venue of the state and
local courts of the State of New York located in New York City and of the federal courts in the Southern District of New York
with respect to any action or legal proceeding commenced by any party, and irrevocably waive any objection they now or hereafter
may have respecting the venue of any action or proceeding brought in such a court or respecting the fact that such court is an
inconvenient forum, relating to or arising out of this Agreement or any acts or omissions relating to the sale of the Common Stock,
and the undersigned consents to the service of process in any such action or legal proceeding by means of registered or certified
mail, return receipt requested, in care of the address set forth below or such other address as the undersigned shall furnish
in writing to the Company.

 

    	- 11 -

    	 

    

 

(2)          THE
UNDERSIGNED HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING
IN TORT, CONTRACT, FRAUD OR OTHERWISE) IN ANY WAY ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE UNDERSIGNED’S
PURCHASE OF THE COMMON STOCK. 

 

(3)          This
Agreement may be executed by facsimile and in any number of counterparts, and each such counterpart hereof shall be deemed to
be an original instrument, but all such counterparts together shall constitute one agreement. Execution and delivery of this Agreement
by facsimile transmission (including delivery of documents in Adobe PDF format) shall constitute execution and delivery of this
Agreement for all purposes, with the same force and effect as execution and delivery of an original manually signed copy hereof. 

 

(4)          The
headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

(5)          If
any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

(6)          Each
Party shall be responsible for all of its out-of-pocket costs and expenses incurred with respect to this Agreement and the transactions
contemplated by this Agreement. Nevertheless, in the event that any dispute between the Parties should result in litigation or
arbitration, the prevailing party in such dispute shall be entitled to seek to recover from the non-prevailing party in such dispute
all reasonable fees, costs and expenses of enforcing any right of the prevailing party, including without limitation, reasonable
attorney’s fees and expenses, all of which shall be deemed to have accrued upon the commencement of such action and shall
be paid whether or not such action is prosecuted to judgment.

 

(7)          
This Agreement supersedes all other prior oral or written agreements among Man FinCo, the Company, their affiliates and persons
acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments and agreements referenced
herein contain the entire understanding of the Parties with respect to the matters covered herein and therein and, except as specifically
set forth herein or therein, neither the Company nor Man FinCo makes any representation, warranty, covenant or undertaking with
respect to such matters. No provision of this Agreement may be amended other than by an instrument signed by the Company and Man
FinCo, and no provision hereof may be waived other than by an instrument signed by the Party against whom enforcement is sought. 

 

    	- 12 -

    	 

    

 

(8)          All
share and per share numbers set forth herein shall be subject to appropriate adjustment for stock splits, stock dividends, recapitalizations
and similar events occurring after the date of this Agreement.

 

G.          Notice
Provisions 

 

Any
and all notices, demands or requests required or permitted to be given under this Agreement shall be given in writing and sent,
by registered or certified U.S. mail, return receipt requested, by hand, or by overnight courier, addressed to the parties hereto
at their addresses set forth herein or such other addresses as they may from time-to-time designate by written notice, given in
accordance with the terms of this Section G, together with copies thereof as follows: 

 

In
the case of the Company to: 

 

Electronic
Cigarettes International Group, Ltd.

14200
Ironwood Drive

Grand Rapids, MI 49534

 

with
a copy to:

 

Pryor
Cashman LLP

7
Times Square

New
York, New York 10036

Attention:
M. Ali Panjwani, Esq.

Fax:
(212) 798-6319

 

In
the case of Man FinCo, to:

 

Man
FinCo Limited

PO
Box 9275

c/o
Al Tamimi & Company,

Advocates
and Legal Consultants

9th
Floor, Dubai World Trade Centre

Dubai,
United Arab Emirates

 

    	- 13 -

    	 

    

 

With
a copy to:

 

MAN
CAPITAL LLP

4
Grosvenor Place

London
SW1X 7HJ

Telephone:
+44 (0) 207 838 7311

Fax:
+44 (0) 207 838 7339

Email:
Nmalik@mancapllp.com

 

With
a copy to:

 

WilmerHale

10
Noble Street

London
EC2V 7QJ

United
Kingdom

Attention:
Michael Holter

Email:
michael.holter@wilmerhale.com

Tel: +44-20-7645-2509

 

Notice
given as provided in this Section shall be deemed effective: (i) on the business day hand delivered (or, if it is not a business
day, then the next succeeding business day thereafter), (ii) on the first business day following the sending thereof by overnight
courier, receipt acknowledged, and (iii) on the seventh calendar day (or, if it is not a business day, then the next succeeding
business day thereafter) after the depositing thereof into the exclusive custody of the U.S. Postal Service. As used herein, the
term business day (other than Saturday or Sunday) shall mean any day when commercial banks are open in the State of New York to
accept deposits.

 

    	- 14 -

    	 

    

 

IN
WITNESS WHEREOF, the Parties have executed this Securities Purchase Agreement on this ___ day of April 2015.

	 	 	 	 	 
	MAN FINCO LIMITED	 
	 	 
	BY:	 	 	 
	NAME:	 
	TITLE:	 
	 	 
	ELECTRONIC CIGARETTES INTERNATIONAL
    GROUP, LTD.	 
	 	 
	By:	 	 	 
	 	Name:	 	 
	 	Title:

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