Electronic Cigarettes International Group, Ltd. and institutional investor (Lead Lender) entered into Amendment No. 5 to the Lead Lender Credit Agreement pursuant to which the company and the Lead Lender amended the Lead Lender Credit Agreement to provide for a fifth closing under the Lead Lender Credit Agreement and for an additional term loan (collectively with all term loans under the Lead Lender Credit Agreement, the "Term Loans") to the company in the principal amount of $4,000,000, resulting in an aggregate outstanding principal balance under the Lead Lender Credit Agreement of $72,042,955. In addition, the Lead Lender Amendment amends the Lead Lender Credit Agreement to extend the maturity date of the term loans from April 27, 2018 to June 30, 2020; eliminate amortization payments on the Term Loans until June 30, 2020; reduce the interest rate payable on the term loans thereunder from 12.0% to 4.0%; and provide for the payment of interest by the company using shares of common stock, par value $0.001 per share of the company. The term loan made pursuant to the Lead Lender Amendment shall mature on June 30, 2020 and shall bear interest on the outstanding principal balance at the rate of 4.0% per annum, payable on a quarterly basis and is evidenced by a Term Note in substantially the same form as issued to the Lead Lender at the first, second, third, and fourth closings.