<SUBMISSION>
<ACCESSION-NUMBER>0001299933-13-000499
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>7
<PERIOD>20130311
<ITEMS>1.01
<ITEMS>2.03
<ITEMS>9.01
<FILING-DATE>20130314
<DATE-OF-FILING-DATE-CHANGE>20130314
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>Castle Brands Inc
<CIK>0001311538
<ASSIGNED-SIC>2080
<IRS-NUMBER>000000000
<STATE-OF-INCORPORATION>FL
<FISCAL-YEAR-END>0331
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-32849
<FILM-NUMBER>13690865
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>122 EAST 42ND STREET
<STREET2>SUITE 4700
<CITY>NEW YORK
<STATE>NY
<ZIP>10168
<PHONE>646-356-0200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>122 EAST 42ND STREET
<STREET2>SUITE 4700
<CITY>NEW YORK
<STATE>NY
<ZIP>10168
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>htm_47295.htm
<DESCRIPTION>LIVE FILING
<TEXT>
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<TITLE> Castle Brands Inc. (Form: 8-K) </TITLE>
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		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
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	WASHINGTON, D.C. 20549
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	FORM 8-K
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	CURRENT REPORT
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	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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	Date of Report (Date of Earliest Event Reported):
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	&nbsp;
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	March 11, 2013
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	Castle Brands Inc.
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<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
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	Florida
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	001-32849
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	41-2103550
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_____________________<BR>
	(State or other jurisdiction
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_____________<BR>
	(Commission
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______________<BR>
	(I.R.S. Employer
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	of incorporation)
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	File Number)
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	Identification No.)
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	122 East 42nd Street, Suite 4700, New York, New York
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	10168
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_________________________________<BR>
	(Address of principal executive offices)
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	&nbsp;
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___________<BR>
	(Zip Code)
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	Registrant&#146;s telephone number, including area code:
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	(646) 356-0200
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	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
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	&nbsp;
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:</FONT>
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[&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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	Item 1.01 Entry into a Material Definitive Agreement.
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On March 11, 2013, Castle Brands Inc., a Florida corporation (the "Company"), and its wholly-owned subsidiary, Castle Brands (USA) Corp., a Delaware corporation ("CB-USA"), entered into a Second Amendment (the "Loan Amendment") to that certain Loan and Security Agreement (as amended, the "Loan Agreement""), dated August 19, 2011, with Keltic Financial Partners II, LP, a Delaware limited partnership ("Keltic").The Loan Amendment provided for an increase in  available borrowings (subject to certain terms and conditions) under the  revolving facility for working capital purposes from $7,000,000 to $8,000,000 (the "Facility").  The Loan Amendment also provided for a term loan of $2,500,000 (the "Term Loan") that was used for the purchase of bourbon inventory on March 11, 2013. The Company and CB-USA are referred to individually and collectively as the Borrower.  Unless sooner terminated in accordance with their respective terms, the Facility and Term Loan expire on December 31, 2016 (the "Maturity Date").<br><br>The Borrower may borrow up to the maximum amount of the Facility, provided that the Borrower has a sufficient borrowing base. The borrowing base equals (a) up to 85% of the aggregate amount of the Borrower&#x2019;s "Eligible Receivables" (as defined in the Loan Agreement), plus (b) the least of (i) 50% of the "Value" (as defined in the Loan Agreement) of the Borrower&#x2019;s "Eligible Inventory" (as defined in the Loan Agreement), (ii) $3,500,000 and (iii) 60% of the Borrowing Capacity (as defined in the Loan Agreement) at such time, less (c) the aggregate amount of all Reserves (as defined in the Loan Agreement) in effect at such time.<br><br>The Facility interest rate is the rate that, when annualized, is the greatest of (a) the Prime Rate plus 3.25%, (b) the LIBOR Rate plus 5.75% and (c) 6.50%.  The Term Loan interest rate is the rate that, when annualized, is the greatest of (a) the Prime Rate plus 4.25%, (b) the LIBOR Rate plus 6.75% and (c) 7.50%.  Interest is payable monthly in arrears, on the first day of every month on the average daily unpaid principal amount of the Facility. After the occurrence and during the continuance of any "Default" or "Event of Default" (as defined under the Loan Agreement) the Borrower is required to pay interest at a rate that is 3.25% per annum above the then applicable Facility or Term Loan, as applicable, interest rate. The Facility currently bears interest at 6.50% and the Term Loan currently bears interest at 7.50%.  The Borrower is required to pay down the principal balance of the Term Loan within 15 banking days from the completion of a bottling run of bourbon from the Borrower&#x2019;s bourbon inventory stock purchased on or about the date of the Term Loan in an amount equal to the purchase price of such bourbon.  The unpaid principal balance of the Term Note, all accrued and unpaid interest thereon, all fees, costs and expenses payable in connection with the Term Note are due and payable in full on the Maturity Date.  Upon execution of the Loan Amendment, the Borrower paid Keltic a $70,000 closing and commitment fee, and Keltic will also continue to receive an annual facility fee and a collateral management fee (each as set forth in the Loan Agreement).<br><br>The Loan Agreement contains standard borrower representations and warranties for asset-based borrowing and a number of reporting obligations and affirmative and negative covenants. The Borrower is required, among other things, to provide Keltic with weekly borrowing base certificates, monthly reports, annual financial statements and other current and periodic financial, operating and business records and reports, as well as tax returns and such other information as Keltic may from time to time request.<br><br>The Loan Agreement includes negative covenants that, among other things, restrict the Borrower&#x2019;s ability to create additional indebtedness, dispose of properties, incur liens, and make distributions or cash dividends.<br><br>The Loan Agreement specifies certain Events of Default that include, among others, payment defaults, violations of affirmative and negative covenants in the Loan Agreement, imposition of certain liens, and events of insolvency and bankruptcy. Upon a Default or Event of Default, Keltic may terminate or suspend its obligation to make further advances and upon an Event of Default Keltic may, among other things, accelerate the Facility and Term Loan repayment and declare all obligations under the Loan Agreement to be immediately due and payable.<br><br>In connection with the Loan Agreement, the Company and CB-USA have entered into the following ancillary agreements with Keltic: (i) an Amended and Restated Revolving Credit Note ("Note"); (ii) a Reaffirmation Agreement ("Reaffirmation Agreement") with certain officers of the Company and CB-USA, including John Glover, the Company&#x2019;s Chief Operating Officer, T. Kelley Spillane, the Company&#x2019;s Senior Vice President - Global Sales, and Alfred Small, the Company&#x2019;s Senior Vice President, Chief Financial Officer, Secretary & Treasurer, which reaffirms the existing Validity and Support Agreements by and among each officer, each Borrower and Keltic; and (iii) in connection with the Term Loan, a Term Note ("Term Note").<br> <br>Keltic required as a condition to funding the Term Loan that Keltic had entered into a participation agreement (the "Participation Agreement") providing for an aggregate of $750,000 of the Term Loan to be purchased by junior participants.  Certain related parties of the Company purchased a portion of these junior participations in the Term Loan, including Frost Gamma Investments Trust ($500,000), an entity affiliated with Phillip Frost, M.D., a director and principal shareholder of the Company, Mark E. Andrews, III ($50,000), a director of the Company and the Company&#x2019;s Chairman, and an affiliate of Richard J. Lampen ($50,000), a director of the Company and the Company&#x2019;s President and Chief Executive Officer.  Under the terms of the Participation Agreement, the junior participants will receive interest at the rate of 11% per annum.  Neither the Company nor CB-USA is a party to the Participation Agreement.  However, the Borrower is party to a fee letter (the "Fee Letter") with the junior participants (including the related party junior participants) pursuant to which the Borrower will pay the junior participants an aggregate commitment fee of $45,000 paid in three equal annual installments of $15,000. <br><br>The obligations of the Borrower under the Loan Agreement are secured by the grant of a pledge and security interest over all of the assets of the Borrower.<br><br>The foregoing summary is qualified in its entirety by reference to the text of the Loan Agreement, Note, Reaffirmation Agreement, Fee Letter, Participation Agreement and Term Note attached hereto as exhibits and incorporated by reference herein.<br>
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	Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
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The information in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein.
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	Item 9.01 Financial Statements and Exhibits.
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(d) Exhibits.<br><br>4.1 Second Amendment to Loan and Security Agreement, dated as of March 11, 2013, among Keltic Financial Partners II, LP, the Company and Castle Brands (USA) Corp.   <br><br>4.2 Amended and Restated Revolving Credit Note, dated as of March 11, 2013, in favor of Keltic Financial Partners II, LP.<br><br>4.3 Term Note, dated as of March 11, 2013, in favor of Keltic Financial Partners II, LP.<br><br>10.1 Reaffirmation Agreement, dated as of March 11, 2013, among Keltic Financial Partners II, LP, the Company, Castle Brands (USA) Corp. and the officers signatory thereto.<br><br>10.2 Fee Letter, dated as of March 11, 2013, among the Company, Castle Brands (USA) Corp. and the junior participants party thereto.<br><br>99.1 Participation Agreement, dated as of March 11, 2013, among Keltic Financial Partners II, LP and the junior participants party thereto.<br><br><br><br>
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	SIGNATURES
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	Pursuant to the requirements of the Securities Exchange Act of 1934, the
	registrant has duly caused this report to be signed on its behalf by the
	undersigned hereunto duly authorized.
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	Castle Brands Inc.
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	&nbsp;&nbsp;
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<I>
	March 14, 2013
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<I>
	By:
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	/s/ Alfred J. Small
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<I>
	Name: Alfred J. Small
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<I>
	Title: SVP, CFO, Treasurer & Secretary
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	Exhibit&nbsp;Index
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	Exhibit No.
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	Description
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	4.1
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Second Amendment to Loan and Security Agreement, dated as of March 11, 2013, among Keltic Financial Partners II, LP, the Company and Castle Brands (USA) Corp.
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	4.2
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Amended and Restated Revolving Credit Note, dated as of March 11, 2013, in favor of Keltic Financial Partners II, LP.
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	4.3
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Term Note, dated as of March 11, 2013, in favor of Keltic Financial Partners II, LP.
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	10.1
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Reaffirmation Agreement, dated as of March 11, 2013, among Keltic Financial Partners II, LP, the Company, Castle Brands (USA) Corp. and the officers signatory thereto.
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	10.2
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	&nbsp;
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Fee Letter, dated as of March 11, 2013, among the Company, Castle Brands (USA) Corp. and the junior participants party thereto.
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	99.1
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Participation Agreement, dated as of March 11, 2013, among Keltic Financial Partners II, LP and the junior participants party thereto.
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<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>exhibit1.htm
<DESCRIPTION>EX-4.1
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<TITLE> EX-4.1 </TITLE>
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<P align="center" style="font-size: 10pt"><FONT style="font-size: 11pt">_________________________________________________________________</FONT>



<P align="center" style="font-size: 11pt"><B>SECOND AMENDMENT</B>



<P align="center" style="font-size: 11pt"><B>TO THE</B>



<P align="center" style="font-size: 11pt"><B>LOAN AND SECURITY AGREEMENT</B>



<P align="center" style="font-size: 11pt"><B>BETWEEN</B>



<P align="center" style="font-size: 11pt"><B>CASTLE BRANDS INC.,<BR>
CASTLE BRANDS (USA)&nbsp;CORP.</B>



<P align="center" style="font-size: 11pt"><B>AND</B>



<P align="center" style="font-size: 11pt"><B>KELTIC FINANCIAL PARTNERS II, LP</B>



<P align="center" style="font-size: 11pt"><B>DATED AS OF AUGUST 19, 2011</B>



<P>
<HR noshade width="26%" align="center" size="1" color="#000000">
<P>




<P align="center" style="font-size: 11pt">Effective Date: March&nbsp;11, 2013



<P align="center" style="font-size: 11pt"><B>SECOND AMENDMENT LOAN AND SECURITY AGREEMENT</B>



<P align="left" style="font-size: 11pt"><B>RECITALS</B>:


<P align="left" style="font-size: 11pt"><B>CASTLE BRANDS INC.</B>, a corporation organized under the laws of the State of Florida (&#147;<B><I>CBI</I></B>&#148;) and
<B>CASTLE BRANDS (USA)&nbsp;CORP. </B>a corporation organized under the laws of the State of Delaware (&#147;<B><I>CBUSA</I></B>&#148;)
(individually and collectively, &#147;<B><I>Borrower</I></B>&#148;) and <B>KELTIC FINANCIAL PARTNERS II, LP</B>, a Delaware
limited partnership (&#147;<B><I>Lender</I></B>&#148;), are parties to a Loan and Security Agreement dated as of August&nbsp;19,
2011, as amended by a First Amendment dated as of July&nbsp;23, 2012 (together, the &#147;<B><I>Credit Agreement</I></B>&#148;),
in connection with which Borrower delivered an Amended and Restated Revolving Credit Note dated
July&nbsp;23, 2012 in a maximum principal amount of <B>$7,000,000 </B>(the &#147;<B><I>Revolving Credit Note</I></B>&#148;), and other
agreements, documents and instruments in connection therewith (all of the foregoing, as the same
may be amended, restated, or otherwise modified from time to time to be collectively referred to as
the &#147;<B><I>Loan Documents</I></B>&#148;).


<P align="left" style="font-size: 11pt">Pursuant to the terms of the Loan Documents, Lender has extended a &#147;Revolving Credit&#148; to Borrower
in a maximum principal amount of <B>$7,000,000</B>. Borrower has requested that Lender increase the
principal amount of the Revolving Credit by <B>$1,000,000</B>, with a resulting maximum principal amount
of <B>$8,000,000</B>, and provide a Term Loan in the amount of <B>$2,500,000 </B>in connection with the
acquisition of specified inventory by Borrower. Upon the terms and conditions contained in this
Amendment Lender has agreed to consent to amend the Credit Agreement as provided below.


<P align="left" style="font-size: 11pt"><B>AGREEMENT</B>:


<P align="left" style="font-size: 11pt">1.&nbsp;<U>Defined Terms</U>. Unless otherwise defined in the Recitals or in the body of this
Amendment, all capitalized terms shall have the meanings ascribed to such terms in the Loan
Documents.


<P align="left" style="font-size: 11pt">2.&nbsp;<U>Recitals</U>. The Recitals in Credit Agreement are hereby amended by adding the phrase &#147;and
a term loan&#148; immediately following the phrase &#147;revolving credit facility&#148; contained therein.


<P align="left" style="font-size: 11pt">3.&nbsp;<U>Revolving Credit; Revolving Credit Note</U>. The Section&nbsp;2.1 of the Credit Agreement is
hereby deleted in its entirety and replaced with the following:



<P align="left" style="margin-left:3%; font-size: 11pt">&#147;<B>2.1. Revolving Credit; Revolving Credit Note</B>. Subject to the terms and conditions of this
Agreement and as long as no Default or Event of Default then exists, on Borrower&#146;s request
prior to the Revolving Credit Termination Date Lender shall lend to Borrower under a revolving
credit facility (the &#147;<B><I>Revolving Credit</I></B>&#148;) a principal sum (the &#147;<B><I>Borrowing Capacity</I></B>&#148;) equal to
the lesser of (a) <B>EIGHT MILLION AND 00/100 DOLLARS ($8,000,000.00) </B>(the &#147;<B><I>Revolving Credit
Limit</I></B>&#148;), or (b)&nbsp;the Borrowing Base. The maximum principal amount of any Advance shall not
exceed an amount equal to the amount of the Borrowing Capacity <B><I>less </I></B>the aggregate amount of
all Obligations relating to the Revolving Credit then outstanding. Within the limits of the
Borrowing Capacity, and subject to terms and conditions of this Agreement, Borrower may
borrow, repay and reborrow the principal amount of the Revolving Credit. Borrower&#146;s
obligation to pay the principal of, and interest on, Advances made to Borrower and the
Revolving Credit shall be evidenced by an Authenticated promissory note in the form of <B>Exhibit
E </B>(the &#147;<B><I>Revolving Credit Note</I></B>&#148;).


<P align="left" style="font-size: 11pt">4.&nbsp;<U>Exhibit&nbsp;E; Form of Revolving Credit Note</U>. Exhibit&nbsp;E to the Credit Agreement shall be
deleted in its entirety are replaced with <B>Exhibit&nbsp;E </B>attached hereto.


<P align="left" style="font-size: 11pt">5.&nbsp;<U>Term Loan</U>. A new Section&nbsp;2.1.A is hereby added to the Credit Agreement to read as
follows:



<P align="left" style="margin-left:3%; font-size: 11pt">&#147;<B>2.1.A. Term Loan</B>. Subject to the terms and conditions of this Agreement Lender shall extend
to Borrower a term loan in an original principal amount equal to <B>TWO MILLION FIVE HUNDRED
THOUSAND AND 00/100 DOLLARS </B>($<B>2,500,000.00</B>) (the &#147;<B><I>Term Loan</I></B>&#148;). The Term Loan shall be subject
to the terms and conditions of this Agreement and shall be subject to such additional terms
and conditions contained in an Authenticated promissory note in form and content acceptable to
Lender delivered by Borrower to Lender evidencing Borrower&#146;s obligation to pay the principal
of, and interest on, the Term Loan (the &#147;<B><I>Term Note</I></B>&#148;). Prior to the Maturity Date of the Term
Loan Borrower may prepay the outstanding principal amount of the Term Loan, in whole or in
part. Each prepayment of the principal amount of the Term Loan shall be in a minimum
aggregate principal amount of Ten Thousand and 00/100 Dollars ($10,000.00) or in a larger
multiple of Five Thousand and 00/100 Dollars ($5,000.00). Each prepayment of principal of the
Term Loan shall also be subject to the requirements of <B>Section&nbsp;3.7</B>.&#148;


<P align="left" style="font-size: 11pt">6.&nbsp;<U>Crediting of Funds</U>. Subparagraphs (a)&nbsp;through (d)&nbsp;of Section&nbsp;2.7 of the Credit
Agreement are hereby deleted in their entirety and replaced with the following:



<P align="left" style="margin-left:3%; font-size: 11pt">&#147;(a) to unpaid fees and expenses;



<P align="left" style="margin-left:3%; font-size: 11pt; text-indent: 1%">(b)&nbsp;to unpaid interest;



<P align="left" style="margin-left:3%; font-size: 11pt; text-indent: 1%">(c)&nbsp;if then due and payable, to the outstanding and unpaid principal balance of the Term
Loan;



<P align="left" style="margin-left:3%; font-size: 11pt; text-indent: 1%">(d)&nbsp;the outstanding principal balance of the Revolving Credit; and



<P align="left" style="margin-left:3%; font-size: 11pt; text-indent: 1%">(e)&nbsp;to all other Obligations in such order as Lender shall elect.&#148;


<P align="left" style="font-size: 11pt">7.&nbsp;<U>Payment on Termination Date</U>. Section&nbsp;2.9 of the Credit Agreement is hereby deleted in
its entirety and replaced with the following:



<P align="left" style="margin-left:3%; font-size: 11pt">&#147;<B>2.9. Payment on Termination Date; Termination of Advances</B>. On the Termination Date of a Loan
Borrower shall pay to Lender in cash the entire outstanding principal balance of such Loan,
plus all accrued and unpaid interest thereon, plus all fees, costs, expenses and other amounts
payable to Lender under this Agreement and the other Loan Documents, plus all other
Obligations payable in connection with such Loan pursuant to the terms of this Agreement and
the other Loan Documents. Lender shall not be obligated to make or continue to extend any
Advance to Borrower under the Revolving Credit after the Revolving Credit Termination Date.&#148;


<P align="left" style="font-size: 11pt">8.&nbsp;<U>Term Loan Interest</U>. A new paragraph is hereby added to Section&nbsp;3.1 of the Credit
Agreement immediately following paragraph (b)&nbsp;thereof and prior to the current final paragraph
thereof to read as follows:



<P align="left" style="margin-left:3%; font-size: 11pt">&#147;Borrower shall pay to Lender interest on the outstanding principal amount of the Term Loan at
such rates and at such times as provided in the Term Note until all Obligations with respect
to the Term Loan have been finally and indefeasibly paid to Lender in cash and performed in
full.&#148;


<P align="left" style="font-size: 11pt">9.&nbsp;<U>Facility Fee</U>. Section&nbsp;3.2 of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:



<P align="left" style="margin-left:3%; font-size: 11pt">&#147;<B>3.2. Facility Fee</B>. Borrower shall pay to Lender a fee (the &#147;<B><I>Facility Fee</I></B>&#148;) (a)&nbsp;annually with
respect to the Revolving Credit, that shall be earned in full on March&nbsp;8, 2013 and on January
1 of each subsequent calendar year in an amount equal to one percent (1.0%) (the &#147;<B><I>Facility Fee
Percentage</I></B>&#148;) of the maximum principal amount of the Revolving Credit until all Obligations
with respect to the Revolving Credit are finally and indefeasibly paid in cash to Lender and
performed in full, <B><I>plus </I></B>(b)&nbsp;monthly with respect to the Term Loan, that shall be earned on the
first day of each calendar month an amount equal to Two Thousand and 00/100 Dollars
($2,000.00) until all Obligations with respect to the Term Loan are finally and indefeasibly
paid in cash to Lender and performed in full. In the absence of the occurrence and
continuation of an Event of Default, the Facility Fee with respect to the Revolving Credit
shall be paid in twelve (12)&nbsp;equal monthly installments, in arrears, on the first day of each
calendar month. Upon the occurrence of any Event of Default and written notice by Lender,
Borrower shall immediately pay to Lender the portion of the Facility Fee with respect to the
Revolving Credit remaining unpaid for the then-current Contract Year. The Facility Fee shall
be appropriately adjusted during any Contract Year in which the maximum principal amount of
any Loan is increased.&#148;


<P align="left" style="font-size: 11pt">10.&nbsp;<U>Liquidated Damages</U>. Section&nbsp;3.7 of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:



<P align="left" style="margin-left:3%; font-size: 11pt">&#147;<B>3.7. Liquidated Damages</B>. Subject to the terms and conditions of this Agreement, Borrower
shall have the right (a)&nbsp;prior to December&nbsp;31, 2016 to prepay the outstanding principal amount
of the Term Loan in whole or in part, or (b)&nbsp;prior to December&nbsp;31, 2016 to prepay in full the
entire outstanding principal balances of the Revolving Credit and the Term Loan, all accrued
and unpaid interest thereon, all fees, costs, expenses and other amounts payable to Lender in
connection with the Revolving Credit and the Term Loan, and all other Obligations payable to
Lender under this Agreement and the other Loan Documents. Borrower&#146;s election to prepay the
Term Loan in whole or in part, or election to prepay the Obligations relating to the Revolving
Credit and the Term Loan in full shall be delivered to Lender in writing (a &#147;<B><I>Principal
Reduction Notice</I></B>&#148;) at least sixty (60)&nbsp;calendar days&#146; prior to the date of such prepayment. A
Principal Reduction Notice shall be irrevocable when delivered to Lender, and if all
Obligations relating to the Revolving Credit are finally and indefeasibly paid to Lender in
connection with such Principal Reduction Notice, the Revolving Credit and the Term Loan shall
be terminated and all obligations of Lender to extend credit to Borrower under the Revolving
Credit shall terminate.



<P align="left" style="margin-left:3%; font-size: 11pt">If (w)&nbsp;prior to December&nbsp;31, 2016 Borrower prepays the principal amount of the Term Loan in
whole or in part pursuant to the foregoing paragraph, <B><I>or </I></B>(x)&nbsp;prior to December&nbsp;31, 2016
Borrower prepays in full the entire outstanding principal balances of the Revolving Credit and
the Term Loan, all accrued and unpaid interest thereon, all fees, costs, expenses and other
amounts payable to Lender in connection with the Revolving Credit and the Term Loan, and all
other Obligations payable to Lender under this Agreement and the other Loan Documents pursuant
to the foregoing paragraph, <B><I>or </I></B>(y)&nbsp;pursuant to the terms of this Agreement or any other Loan
Document, and prior to December&nbsp;31, 2016, either (I)&nbsp;Lender demands repayment of the
outstanding Obligations in whole or in part, or (II)&nbsp;repayment of the outstanding Obligations
are otherwise accelerated in whole or in part, <B><I>then </I></B>(z)&nbsp;at the time of such repayment,
prepayment, demand or acceleration Borrower shall pay liquidated damages to Lender in an
amount equal to:



<P align="left" style="margin-left:6%; font-size: 11pt; text-indent: 2%">(i) (A)&nbsp;if prepayment, repayment, demand or acceleration of the Revolving Credit,
the Revolving Credit Limit, and/or (B)&nbsp;if prepayment, repayment, demand or acceleration
of the Term Loan in whole or in part, the outstanding principal amount of the Term Loan
being prepaid, <U>multiplied by</U>



<P align="left" style="margin-left:6%; font-size: 11pt; text-indent: 2%">(ii) (A)&nbsp;five percent (5.00%) if such prepayment, repayment, demand or acceleration
occurs prior to January&nbsp;1, 2014, (B)&nbsp;two percent (2.00%) if such prepayment, repayment,
demand or acceleration occurs on or after January&nbsp;1, 2014 but prior to January&nbsp;1, 2015,
and (C)&nbsp;one percent (1.00%) if such prepayment, repayment, demand or acceleration occurs
on or after January&nbsp;1, 2015 but prior to December&nbsp;31, 2016.&#148;



<P align="left" style="margin-left:3%; font-size: 11pt">Borrower acknowledges and agrees that (I)&nbsp;it would be difficult or impractical to calculate
Lender&#146;s actual damages from early termination of the Revolving Credit and the Term Loan and
Lender&#146;s compensation from Loans hereunder following such early termination, (II)&nbsp;the
liquidated damages provided above are intended to be fair and reasonable approximations of
such damages, and (III)&nbsp;the liquidated damages are not intended to be penalties.&#148;


<P align="left" style="font-size: 11pt">11.&nbsp;<U>Definitions</U>. The Definitions Schedule is hereby amended as follows:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Borrowing Base</U>. Clause (ii)&nbsp;of paragraph (b)&nbsp;of the definition of &#147;Borrowing
Base&#148; contained in the Definition Schedule is hereby deleted in its entirety and replaced
with &#147;(ii) Three Million Five Hundred Thousand and 00/100 Dollars ($3,500,000.00);&#148;.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Default Rate</U>. The definition of &#147;Default Rate&#148; contained in the Definition
Schedule is hereby deleted in its entirety and replaced with the following:</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 11pt; text-indent: 2%">&#145;&#147;<B><I>Default Rate</I></B>&#148; means, with respect to a Loan, an annualized rate of interest that is
equal to three and one quarter percent (3.25%) more than the rate of interest applicable to
such Loan.&#146;


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Maturity Date</U>. A new definition is hereby added to the Definition Schedule to
read as follows:</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 11pt; text-indent: 2%">&#145;&#147;<B><I>Maturity Date</I></B>&#148; means with respect to the Term Loan the earliest to occur of (a)&nbsp;the
maturity date of the Term Loan as provided in the Term Note, (b)&nbsp;the date Lender terminates
the Term Loan pursuant to <B>Section&nbsp;9.2(a)</B>, (c)&nbsp;the date on which repayment of the Term Loan,
or any portion thereof, becomes immediately due and payable pursuant to <B>Section&nbsp;9.2(b)</B>, and
(d)&nbsp;the Revolving Credit Termination Date.&#146;


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Revolving Credit Termination Date</U>. The definition of &#147;Revolving Credit
Termination Date&#148; is hereby deleted in its entirety and replaced with the following:</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 11pt; text-indent: 2%">&#145;&#147;<B><I>Revolving Credit Termination Date</I></B>&#148; means the earliest to occur of (a)&nbsp;December&nbsp;31,
2016, (b)&nbsp;the date Lender terminates the Revolving Credit pursuant to <B>Section&nbsp;9.2(a)</B>, and
(c)&nbsp;the date on which repayment of the Revolving Credit, or any portion thereof, becomes
immediately due and payable pursuant to <B>Section&nbsp;9.2(b)</B>.&#146;


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Termination Date</U>. A new definition is hereby added to the Definition Schedule
to read as follows:</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 11pt; text-indent: 2%">&#145;&#147;<B><I>Termination Date</I></B>&#148; means with respect to the Revolving Credit the Revolving Credit
Termination Date, and with respect to the Term Loan the Maturity Date.&#146;


<P align="left" style="font-size: 11pt">12.&nbsp;<U>Reimbursement of Lender</U>. As consideration for Lender&#146;s increase of the Revolving
Credit and amendment of the Credit Agreement described above, and pursuant to Sections&nbsp;3.4 and 10.9
of the Credit Agreement, Borrower shall (a)&nbsp;pay to Lender on the date hereof a commitment fee for
the increase of the Revolving Credit Limit and for the extension of the Term Loan in the amount of
Seventy Thousand and 00/100 Dollars ($70,000.00), and (b)&nbsp;reimburse, indemnify and hold Lender
harmless for the reasonable fees and costs and expenses incurred by Lender for the services of
legal professionals engaged by Lender in connection with the negotiation and preparation of this
Agreement. With respect to any amount required to be paid or reimbursed by Borrower pursuant to
the foregoing provisions of this paragraph 12, it is hereby agreed that Lender may charge any such
amount to the Revolving Credit on the dates such payment is due or such reimbursement is made.
Borrower acknowledges and agrees that on and after the Effective Date of this Amendment the
Facility Fee shall be calculated based on the Revolving Credit Limit as amended by the terms
hereof.


<P align="left" style="font-size: 11pt">13.&nbsp;<U>Effective Date</U>. This Amendment shall be effective as of March&nbsp;8, 2013.


<P align="left" style="font-size: 11pt">14.&nbsp;<U>Specificity of Provisions</U>. The amendments set forth herein are limited precisely as
written and shall not be deemed to (a)&nbsp;be a consent to or a waiver of any other term or condition
of the Credit Agreement or any of the documents referred to therein, or (b)&nbsp;prejudice any right or
rights which Lender may now have or may have in the future under or in connection with the Credit
Agreement or any or any other Loan Document. From and after the effective date of this Amendment,
whenever the Credit Agreement is referred to in the Credit Agreement or in any of the other Loan
Documents, it shall be deemed to mean the Credit Agreement as modified by this Amendment.


<P align="left" style="font-size: 11pt">15.&nbsp;<U>Binding Effect of Loan Documents</U>. Borrower hereby acknowledges and agrees that upon
giving effect to this Amendment, the Credit Agreement, the Revolving Credit Note and each Loan
Document shall continue to be binding upon such Borrower and shall continue in full force and
effect.


<P align="left" style="font-size: 11pt">16.&nbsp;<U>No Other Events of Default</U>. Borrower hereby represents and warrants that upon giving
effect to the terms and provisions of this Amendment no default or Event of Default shall have
occurred and be continuing under the terms of the Credit Agreement.


<P align="left" style="font-size: 11pt">17.&nbsp;<U>Choice of Law</U>. This Amendment and the legal relations among the parties hereto shall
be governed by and construed in accordance with the internal laws of the State of New York without
regard to conflicts of law principles.


<P align="left" style="font-size: 11pt">18.&nbsp;<U>Counterparts</U>. This Amendment may be executed by one or more the parties to this
Amendment on any number of separate counterparts and all of said counterparts taken together shall
be deemed to constitute one and the same instrument.


<P align="center" style="font-size: 11pt"><B><I>&#091;REMAINDER OF PAGE INTENTIONALLY LEFT BLANK&#093;<BR>
&#091;SIGNATURE PAGE IMMEDIATELY FOLLOWS&#093;</I></B>




<P align="center" style="font-size: 10pt; display: none">1
<!-- PAGEBREAK -->




<P align="left" style="font-size: 11pt">IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered
by their respective duly authorized officers.

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="24%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="71%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>LENDER:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD colspan="3" valign="top" align="left">KELTIC FINANCIAL PARTNERS II, LP<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD colspan="3" valign="top" align="left">By: Keltic Financial Services, LLC, its general partner<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Oleh Szcaupak</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oleh Szcaupak</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">March&nbsp;11, 2013</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 11pt"><B>BORROWER</B>:


<P align="left" style="font-size: 11pt">CASTLE BRANDS INC.

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">March&nbsp;11, 2013</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 11pt">CASTLE BRANDS (USA)&nbsp;CORP.

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">March&nbsp;11, 2013</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt; display: none">2




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<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>3
<FILENAME>exhibit2.htm
<DESCRIPTION>EX-4.2
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<TITLE> EX-4.2 </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><FONT style="font-size: 11pt"><B>AMENDED AND RESTATED<BR>
REVOLVING CREDIT NOTE</B></FONT>



<P align="right" style="font-size: 11pt">March&nbsp;11, 2013<BR>
<B>$8,0000,000.00 </B>Tarrytown, New York



<P align="left" style="font-size: 11pt; text-indent: 8%">FOR VALUE RECEIVED, <B>CASTLE BRANDS INC</B>., a corporation organized under the laws of the State of
Florida (&#147;<B><I>CBI</I></B>&#148;) and <B>CASTLE BRANDS (USA)&nbsp;CORP. </B>a corporation organized under the laws of the State
of Delaware (&#147;<B><I>CBUSA</I></B>&#148;) (individually and collectively, &#147;<B><I>Borrower</I></B>&#148;) promises, jointly and severally,
to pay to the order of <B>KELTIC FINANCIAL PARTNERS II, LP </B>(&#147;<B><I>Lender</I></B>&#148;), at 580 White Plains Road, Suite
610, Tarrytown, New York 10591 or at such other place as Lender may from time to time in writing
designate, the principal sum of each Advance made by Lender to Borrower under that certain Loan and
Security Agreement dated as of August&nbsp;19, 2011, as amended by a First Amendment dated July&nbsp;23,
2012, and by a Second Amendment dated on or about the date of this Amended and Restated Note and as
it may be subsequently amended and/or modified (collectively, the &#147;<B><I>Loan Agreement</I></B>&#148;) (the Loan
Agreement together with all of the other documents, instruments or agreements executed and/or
delivered to Lender in connection therewith, as the same may be modified, amended, restated or
replaced from time to time, are hereinafter collectively referred to as, the &#147;<B><I>Loan Documents</I></B>&#148;).
The aggregate unpaid principal balance hereof shall not exceed at any time the sum of <B>EIGHT MILLION
AND 00/100 DOLLARS ($8,000,000.00). </B>Capitalized terms used herein and not otherwise defined shall
have the meaning given such terms in the Loan Documents.


<P align="left" style="font-size: 11pt; text-indent: 8%">The entire unpaid principal balance hereof, together with the accrued interest thereon and
accrued late charges, if any, and all other sums due hereunder and under the Loan Documents shall
be due and payable <B>IN FULL </B>on the Termination Date.


<P align="left" style="font-size: 11pt; text-indent: 8%">Borrower also promises to pay interest to Lender monthly, in arrears, on the first
(1<sup>st</sup>) day of each month commencing on February&nbsp;1, 2013 on the average daily unpaid
principal balance of this Note until all amounts due and payable to the Lender in connection
herewith are irrevocably paid in full. For purposes of this Note, interest on the principal amount
of this Note shall be at the rate set forth in <B>Section&nbsp;3.1 </B>of the Loan Agreement, unless otherwise
provided for by the terms of the Loan Agreement.


<P align="left" style="font-size: 11pt; text-indent: 8%">All repayments or prepayments of principal and payments of interest shall be made by Borrower,
or credited to the account of Borrower by Lender, pursuant to the terms of the Loan Agreement.
Borrower may prepay the indebtedness evidenced by this Note in whole or in part pursuant to, and
subject to, <B>Article&nbsp;2 </B>of the Loan Agreement and all other applicable provisions of the Loan
Agreement. Any partial prepayments made by the undersigned will be applied against the remaining
unpaid payments due hereunder as provided in the Loan Agreement.


<P align="left" style="font-size: 11pt; text-indent: 8%">This is the &#147;Revolving Credit Note&#148; referred to in the Loan Agreement and is entitled to the
benefit of all of the terms and conditions and the security of all of the security interests and
liens granted by Borrower or any other person to Lender pursuant to the Loan Agreement or any other
Loan Document including, without limitation, supplemental provisions regarding mandatory and/or
optional prepayment rights and premiums. This Note amends and restates in its entirety, and is
given in replacement of and in substitution for, but not in payment of, an Amended and Restated
Revolving Credit Note dated July&nbsp;23, 2012 and executed and delivered by Borrower to Lender, as such
Note may have been amended from time to time prior to the date hereof.


<P align="left" style="font-size: 11pt; text-indent: 8%">The entire unpaid indebtedness evidenced hereby shall become immediately due and payable,
without further notice or demand upon the happening of any Event of Default. After an Event of
Default, Lender shall have all of the rights and remedies set forth in the Security Agreement, the
other Loan Documents and at law.


<P align="left" style="font-size: 11pt; text-indent: 8%">Whenever any payment to be made under this Note shall be stated to be due on a day other than
a Banking Day, such payment shall be made on the next succeeding Banking Day and such extension of
time shall be included in the computation of any interest then due and payable hereunder.


<P align="left" style="font-size: 11pt; text-indent: 8%">The undersigned and all other parties who, at any time, may be liable hereon in any capacity
waive presentment, demand for payment, protest and notice of dishonor of this Note. This Note and
any provision hereof may not be waived, modified, amended or discharged orally, but only by an
agreement in writing which is signed by the holder and the party or parties against whom
enforcement of any waiver, change, modification, amendment or discharge is sought.


<P align="left" style="font-size: 11pt; text-indent: 8%">This Note shall be governed by and construed under the internal laws of the State of New York,
as the same may from time to time be in effect, without regard to principles of conflicts of laws
thereof. This Note shall be binding upon and shall inure to the benefit of the parties, their
successors and assigns. Lender shall have the right, without the necessity of any further consent
or authorization by Borrower, to sell, assign, securitize or grant participations in all, or a
portion of, Lender&#146;s interest in this Note, to other financial institutions of Lender&#146;s choice and
on such terms as are acceptable to Lender in its sole discretion. Borrower shall not assign,
exchange or otherwise hypothecate any rights or obligations under this Note, in whole or in part,
without the prior written consent of the Lender, and any attempted assignment, exchange or
hypothecation without such written consent shall be void and be of no effect.


<P align="left" style="font-size: 11pt; text-indent: 8%">IN WITNESS WHEREOF, the undersigned has executed this Note the day and year first above
written.


<P align="left" style="font-size: 11pt"><B>CASTLE BRANDS INC.</B>

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="83%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">By:/s/ Alfred J. Small</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Name:Alfred J. Small</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Its:Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Date:March&nbsp;11, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">STATE OF NEW YORK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">) SS.:</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">COUNTY OF NEW YORK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 11pt">On the 11&nbsp;day of March in the year 2013, before me, the undersigned, a notary public in and for
said state, personally appeared Alfred J. Small, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to the within
instrument and acknowledged to me that he/she executed the same in his/her capacity, and that by
his/her signature on the instrument, the individual, or the person upon behalf of which the
individual acted, executed the instrument.


<P align="left" style="font-size: 11pt; text-indent: 27%"><U>/s/ Donna M. Hibbert</U>


<P align="left" style="font-size: 11pt">Notary Public, State of New York


<P align="left" style="font-size: 11pt; text-indent: 27%">Donna M. Hibbert


<P align="left" style="font-size: 11pt; text-indent: 27%">Qualified in Queens County


<P align="left" style="font-size: 11pt; text-indent: 27%">Certificate filed in NY County


<P align="left" style="font-size: 11pt; text-indent: 27%">Expires: Feb. 21, 2014


<P align="center" style="font-size: 10pt; display: none; text-indent: 27%">1
<!-- PAGEBREAK -->

<P align="left" style="font-size: 11pt"><B>CASTLE BRANDS (USA)&nbsp;CORP.</B>

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="83%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">By:/s/ Alfred J. Small</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Name:Alfred J. Small</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Its:Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Date:March&nbsp;11, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">STATE OF NEW YORK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">) SS.:</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">COUNTY OF NEW YORK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 11pt">On the 11&nbsp;day of March in the year 2013, before me, the undersigned, a notary public in and for
said state, personally appeared Alfred J. Small, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to the within
instrument and acknowledged to me that he/she executed the same in his/her capacity, and that by
his/her signature on the instrument, the individual, or the person upon behalf of which the
individual acted, executed the instrument.


<P align="left" style="font-size: 11pt; text-indent: 27%"><U>/s/ Donna M. Hibbert</U>


<P align="left" style="font-size: 11pt">Notary Public, State of New York


<P align="left" style="font-size: 11pt; text-indent: 27%">Qualified in Queens County


<P align="left" style="font-size: 11pt; text-indent: 27%">Certificate filed in NY County


<P align="left" style="font-size: 11pt; text-indent: 27%">Expires: Feb. 21, 2014



<P align="center" style="font-size: 10pt; display: none">2




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<DOCUMENT>
<TYPE>EX-4.3
<SEQUENCE>4
<FILENAME>exhibit3.htm
<DESCRIPTION>EX-4.3
<TEXT>
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<HEAD>
<TITLE> EX-4.3 </TITLE>
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<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><FONT style="font-size: 11pt"><B>TERM NOTE</B></FONT>



<P align="right" style="font-size: 11pt">March&nbsp;11, 2013



<P align="left" style="font-size: 11pt"><B>$2,500,000.00 </B>Tarrytown, New York


<P align="left" style="font-size: 11pt; text-indent: 4%">FOR VALUE RECEIVED, <B>CASTLE BRANDS INC</B>., a corporation organized under the laws of the State of
Florida (&#147;<B><I>CBI</I></B>&#148;) and <B>CASTLE BRANDS (USA)&nbsp;CORP</B>. a corporation organized under the laws of the State
of Delaware (&#147;<B><I>CBUSA</I></B>&#148;) (individually and collectively, &#147;<B><I>Borrower</I></B>&#148;), jointly and severally promise to
pay to the order of <B>KELTIC FINANCIAL PARTNERS II, LP</B>, a Delaware limited partnership (&#147;<B><I>Lender</I></B>&#148;), at
580 White Plains Road, Suite&nbsp;610, Tarrytown, New York 10591 or at such other place as Lender may
from time to time in writing designate, the principal sum of <B>TWO MILLION FIVE HUNDRED THOUSAND AND
00/100 DOLLARS ($2,500,000.00) </B>as provided below. Unless defined herein, capitalized terms shall
have the meanings given such terms in the Loan and Security Agreement between Borrower and Lender
dated as of August&nbsp;19, 2011, as amended by a First Amendment dated as of July&nbsp;23, 2012 and by a
Second Amendment dated on or about the date hereof (together with all Exhibits and Schedules
thereto, as the same may be subsequently amended, extended, restated or otherwise modified, the
&#147;<B><I>Loan Agreement</I></B>&#148;).


<P align="left" style="font-size: 11pt; text-indent: 4%">Borrower agrees to repay the principal amount of this Note to Lender from the proceeds of
Receivables in an amount equal to the &#147;Run Value&#148; of each &#147;Bourbon Inventory Release&#148; (as such
terms are defined below) within fifteen (15)&nbsp;Banking Days from the date of such Bourbon Inventory
Release, and in one (1)&nbsp;installment equal to the then-outstanding and unpaid principal amount of
the Term Loan on December&nbsp;31, 2016 (the <B><I>&#147;Maturity Date&#148;</I></B>). Notwithstanding the foregoing, the
entire unpaid principal balance of this Note, all accrued and unpaid interest thereon, all fees,
costs and expenses payable in connection with the Term Note, and all other sums due hereunder and
under the Loan Documents in connection with the Term Loan, shall be due and payable <B>IN FULL </B>on the
Maturity Date.


<P align="left" style="font-size: 11pt; text-indent: 4%">For purposes of this Note, the term &#147;<B><I>Bourbon Inventory Release</I></B>&#148; means the completion of a
bottling run of bourbon from Borrower&#146;s bourbon inventory stock purchased on or about the date of
this Note (the &#147;<B><I>Purchased Bourbon Inventory</I></B>&#148;). The term &#147;<B><I>Run Value</I></B>&#148; of a Bourbon Inventory Release
means the purchase price of the Bourbon Inventory Release. Borrower shall provide Lender with at
least thirty (30)&nbsp;calendar days&#146; prior written notice of each Bourbon Inventory Release, the Run
Value of such Bourbon Inventory Release, and the number of units to be produced in such Bourbon
Inventory Release.


<P align="left" style="font-size: 11pt; text-indent: 4%">Borrower shall pay interest on the outstanding principal amount of this Note to Lender until
all Obligations with respect to this Note and the Term Loan have been finally and indefeasibly paid
to Lender in cash and performed in full. Interest shall accrue daily on the daily unpaid principal
amount of this Note, and Borrower shall pay interest to Lender monthly in arrears commencing on the
first Banking Day of the calendar month immediately following the Effective Date and on the first
Banking Day of each calendar month thereafter. The outstanding principal balance of this Note
shall bear interest at a fluctuating rate which, when annualized, is equal to the greatest of (A)
the Prime Rate plus four and one quarter percent (4.25%), (B)&nbsp;the LIBOR Rate plus six and three
quarters percent (6.75%), and (C)&nbsp;seven and one half percent (7.50%). If a Default or Event of
Default has occurred and is continuing the outstanding principal balance of this Note shall bear
interest at the Default Rate.


<P align="left" style="font-size: 11pt; text-indent: 4%">Notwithstanding anything to the contrary in this Agreement or any other Loan Document, in no
event shall any interest paid to Lender on the Term Loan exceed an amount that would cause the
interest rate on the Term Loan to exceed the maximum rate permitted by applicable law. Any amount
of interest paid to Lender that is finally and irrevocably determined by a court of competent
jurisdiction to exceed the maximum interest payable on the Term Loan under applicable law shall be
returned by Lender to Borrower promptly thereafter.


<P align="left" style="font-size: 11pt; text-indent: 4%">All repayments or prepayments of principal, all payments of interest and all payments of fees,
costs and expenses payable in connection with the Term Loan shall be made by Borrower, or credited
to the account of Borrower by Lender, pursuant to the terms of the Loan Agreement. Borrower may
prepay the indebtedness evidenced by this Note in whole or in part pursuant to, and subject to, the
applicable provisions of the Loan Agreement and Loan Documents. Any partial prepayment of the
principal of this Note will be applied against the remaining unpaid principal payments due
hereunder in the inverse order in which such payments are due.


<P align="left" style="font-size: 11pt; text-indent: 4%">This is the Note evidencing the &#147;Term Loan&#148; referred to in the Loan Agreement and is entitled
to the benefit of all of the terms and conditions and the security of all of the security interests
and liens granted by Borrower or any other person to Lender pursuant to the Loan Agreement, all
collateral security agreements executed and/or delivered by Borrower, and all of the other Loan
Documents including, without limitation, supplemental provisions regarding mandatory and/or
optional prepayment rights and premiums.


<P align="left" style="font-size: 11pt; text-indent: 4%">The entire unpaid Obligations and Indebtedness evidenced by this Note shall become immediately
due and payable, without further notice to or demand of Borrower upon the happening of any Event of
Default. After an Event of Default, Lender shall have all of the rights and remedies available to
Lender as set forth in the Loan Documents, including but not limited to those relating to the
enforcement of this Note and the collection of the Obligations owing in connection with this Note
and the Term Loan.


<P align="left" style="font-size: 11pt; text-indent: 4%">The agreements, covenants, Indebtedness, liabilities and Obligations of Borrower set forth in
this Note shall continue to be effective, or be reinstated, as the case may be, if at any time any
payment in respect of the Term Loan is rescinded or must otherwise be restored or returned by
Lender by reason of any bankruptcy, reorganization, arrangement, composition or similar proceeding
or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or
similar officer for, Borrower or any other Person, or any Property of Borrower or any other Person,
or otherwise, all as though such payment had not been made.


<P align="left" style="font-size: 11pt; text-indent: 4%">Whenever any payment to be made under this Note shall be stated to be due on a day other than
a Banking Day, such payment shall be made on the next succeeding Banking Day and such extension of
time shall be included in the computation of any interest then due and payable hereunder.


<P align="left" style="font-size: 11pt; text-indent: 4%">The undersigned and all other parties who, at any time, may be liable hereon in any capacity
waive presentment, demand for payment, protest and notice of dishonor of this Note. This Note and
any provision hereof may not be waived, modified, amended or discharged orally, but only by an
agreement in writing which is signed by the holder and the party or parties against whom
enforcement of any waiver, change, modification, amendment or discharge is sought.


<P align="left" style="font-size: 11pt; text-indent: 4%">The agreements, covenants, Indebtedness, liabilities and Obligations of Borrower under this
Note are joint and several obligations of each of the undersigned. Each of undersigned expressly
represents that it is part of a common enterprise and that any financial accommodations by Lender
under this Note and under the other Loan Documents are and will be of direct and indirect interest,
benefit and advantage to the undersigned.


<P align="left" style="font-size: 11pt; text-indent: 4%">This Note shall be governed by and construed in accordance with the internal laws of the State
of New York, as the same may from time to time be in effect, without regard to principles of
conflicts of laws thereof. This Note shall be binding upon Borrower, its successors and assigns,
and shall inure to the benefit of Lender, its successors and assigns. Lender shall have the right,
without the necessity of any further consent of or other action by Borrower, to sell, assign,
securitize or grant participations in all or a portion of Lender&#146;s interest in this Note to other
financial institutions of Lender&#146;s choice and on such terms as are acceptable to Lender in Lender&#146;s
sole discretion. Borrower shall not assign, exchange or otherwise hypothecate any Obligations under
this Note or any other rights, liabilities or obligations of Borrower in connection with this Note,
in whole or in part, without the prior written consent of the Lender, and any attempted assignment,
exchange or hypothecation without such written consent shall be void and be of no effect.


<P align="center" style="font-size: 11pt"><B><I>&#091;REMAINDER OF PAGE INTENTIONALLY LEFT BLANK&#093;</I></B>



<P align="center" style="font-size: 11pt"><B><I>&#091;SIGNATURE PAGE IMMEDIATELY FOLLOWS&#093;</I></B>




<P align="center" style="font-size: 10pt; display: none">1
<!-- PAGEBREAK -->




<P align="left" style="font-size: 11pt; text-indent: 4%"><B>IN WITNESS WHEREOF</B>, the undersigned has executed this Note on the day and year first above
written.

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>CASTLE BRANDS INC.</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="-5%">&nbsp;</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Name: Alfred J. Small</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Chief Financial Officer</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">STATE OF NEW YORK )</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">) SS.:</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">COUNTY OF NEW YORK )</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"></TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5">On the 11 day of March in the year 2013, before me, the undersigned, a notary public in and</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5">for said state, personally appeared Alfred J. Small, personally known to me or proved to me on the</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5">basis of satisfactory evidence to be the individual whose name is subscribed to the within</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5">instrument and acknowledged to me that he/she executed the same in his/her capacity, and that by</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5" style="border-bottom: 1px solid #000000">his/her signature on the instrument, the individual, or the person upon behalf of which the</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">individual acted, executed the instrument.</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<!-- End Table Body -->
</TABLE>
</CENTER>


<P align="left" style="font-size: 11pt; text-indent: 27%"><U>/s/ Donna M. Hibbert</U>


<P align="left" style="font-size: 11pt">Notary Public, State of New York


<P align="left" style="font-size: 11pt; text-indent: 27%">Qualified in Queens County


<P align="left" style="font-size: 11pt; text-indent: 27%">Certificate filed in NY County


<P align="left" style="font-size: 11pt; text-indent: 27%">Expires: Feb. 21, 2014

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>CASTLE BRANDS (USA) CORP.</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="-5%">&nbsp;</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Name: Alfred J. Small</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Chief Financial Officer</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">STATE OF NEW YORK )</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">) SS.:</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">COUNTY OF NEW YORK )</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"></TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5">On the 11 day of March in the year 2013, before me, the undersigned, a notary public in and</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5">for said state, personally appeared Alfred J. Small, personally known to me or proved to me on the</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5">basis of satisfactory evidence to be the individual whose name is subscribed to the within</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5">instrument and acknowledged to me that he/she executed the same in his/her capacity, and that by</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="5" style="border-bottom: 1px solid #000000">his/her signature on the instrument, the individual, or the person upon behalf of which the</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">individual acted, executed the instrument.</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<!-- End Table Body -->
</TABLE>
</CENTER>


<P align="left" style="font-size: 11pt; text-indent: 27%"><U>/s/ Donna M. Hibbert</U>


<P align="left" style="font-size: 11pt">Notary Public, State of New York


<P align="left" style="font-size: 11pt; text-indent: 27%">Qualified in Queens County


<P align="left" style="font-size: 11pt; text-indent: 27%">Certificate filed in NY County


<P align="left" style="font-size: 11pt; text-indent: 27%">Expires: Feb. 21, 2014



<P align="center" style="font-size: 10pt; display: none">2




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<TYPE>EX-10.1
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<FILENAME>exhibit4.htm
<DESCRIPTION>EX-10.1
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<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
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<HEAD>
<TITLE> EX-10.1 </TITLE>
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<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><FONT style="font-size: 12pt"><U><B>REAFFIRMATION AGREEMENT</B></U></FONT>



<P align="left" style="font-size: 12pt; text-indent: 4%"><B>THIS REAFFIRMATION AGREEMENT </B>(this &#147;<B><I>Agreement</I></B>&#148;) is made as of March&nbsp;11, 2013, by the
undersigned in favor of <B>KELTIC FINANCIAL PARTNERS II, LP </B>(&#147;<B><I>Lender</I></B>&#148;).


<P align="left" style="font-size: 12pt"><B>RECITALS:</B>


<P align="left" style="font-size: 12pt"><B>CASTLE BRANDS INC</B>., a corporation organized under the laws of the State of Florida (&#147;<B><I>CBI</I></B>&#148;) and
<B>CASTLE BRANDS (USA)&nbsp;CORP</B>. a corporation organized under the laws of the State of Delaware (&#147;<B><I>CBUSA</I></B>&#148;)
(individually and collectively, &#147;<B><I>Borrower</I></B>&#148;) and <B>KELTIC FINANCIAL PARTNERS II, LP</B>, a Delaware
limited partnership (&#147;<B><I>Lender</I></B>&#148;), are parties to a Loan and Security Agreement dated as of August&nbsp;19,
2011, as amended by a First Amendment dated as of July&nbsp;23, 2012 (together, the &#147;<B><I>Credit Agreement</I></B>&#148;),
in connection with which Borrower delivered an Amended and Restated Revolving Credit Note dated
July&nbsp;23, 2012 in a maximum principal amount of $7,000,000 (the &#147;<B><I>Revolving Credit Note</I></B>&#148;), and other
agreements, documents and instruments in connection therewith.


<P align="left" style="font-size: 12pt">Pursuant to the terms of the Loan Documents, Lender has extended a &#147;Revolving Credit&#148; to Borrower
in a maximum principal amount of $7,000,000. Borrower has requested that Lender increase the
principal amount of the Revolving Credit by $1,000,000, with a resulting maximum principal amount
of $8,000,000, and provide a Term Loan in the amount of $2,500,000 in connection with the
acquisition of specified inventory by Borrower. The Credit Agreement, the Revolving Credit Note,
the &#147;Second Amendment Documents&#148; (defined below), and all other agreements, documents and
instruments executed and/or delivered in connection therewith, as the same may be amended,
restated, or otherwise modified from time to time, shall be collectively referred to as the &#147;<B><I>Loan
Documents</I></B>&#148;.


<P align="left" style="font-size: 12pt">Each of the undersigned indicated as a &#147;<B>Validity Party</B>&#148; has executed and delivered a Validity and
Support Agreement dated on or about August&nbsp;19, 2011 in favor of Lender (each, a &#147;<B><I>Validity
Agreement</I></B>&#148;) pursuant to which such Validity Party has agreed to validate certain information
provided by Borrower to Lender and provide support in connection with Lender&#146;s efforts to collect
collateral to secure Borrower&#146;s payment and performance of all obligations and to Lender and such
other matters as described in such Validity Agreement.


<P align="left" style="font-size: 12pt">Lender has agreed to increase the principal amount of the Revolving Credit by $1,000,000, with a
resulting maximum principal amount of $8,000,000, and provide a Term Loan in the amount of
$2,500,000 in connection with the acquisition of specified inventory by Borrower, pursuant to a
Second Amendment to the Credit Agreement and the other agreements, documents and instruments
relating thereto (collectively, the &#147;<B><I>Second Amendment Documents</I></B>&#148;), subject to and conditioned on
the execution and delivery of this Agreement by the undersigned to Lender.


<P align="center" style="font-size: 10pt; display: none">1
<!-- PAGEBREAK -->

<P align="left" style="font-size: 12pt"><B>AGREEMENT:</B>


<P align="left" style="font-size: 12pt; text-indent: 2%">1.&nbsp;Notwithstanding the occurrence of any of the events described in the recitals hereto or
anything to the contrary contained in any of the Loan Documents, the Borrower hereby reaffirms to
the Lender and ratifies its obligations under the Loan Documents (collectively, the &#147;<B><I>Keltic
Obligations</I></B>&#148;), including, specifically, Second Amendment Documents, and as the Loan Documents may
have been amended, modified and/or restated from time to time and including the amendment,
modification or restatement thereof in connection with the matters described in the recitals
hereto, and each other agreement, document and instrument executed and/or delivered by the Borrower
in connection therewith as the same may have been amended, modified and/or restated from time to
time and including the amendment, modification or restatement thereof in connection with the
matters described in the recitals hereto (collectively, the &#147;<B><I>Borrower Documents</I></B>&#148;), and hereby
further ratifies and confirms that each of the Borrower Documents shall remain in full force and
effect.


<P align="left" style="font-size: 12pt; text-indent: 2%">2.&nbsp;Notwithstanding the occurrence of any of the events described in the recitals hereto or
anything to the contrary contained in such party&#146;s Validity Agreement, each Validity Party hereby
reaffirms to the Lender and ratifies its obligations under such Validity Agreement, and each other
agreement, document and instrument executed and/or delivered by such Validity Party in connection
therewith (collectively, the &#147;<B><I>Validity Documents</I></B>&#148;), and hereby further ratifies and confirms that
each of the Validity Documents executed and/or delivered to Lender shall remain in full force and
effect.


<P align="left" style="font-size: 12pt; text-indent: 2%">3.&nbsp;No change, amendment or modification of this Agreement shall be valid or binding unless
such change, amendment or modification shall be in writing and duly executed by all parties hereto
and consented to by the Lender in writing.


<P align="left" style="font-size: 12pt; text-indent: 2%">4.&nbsp;This Agreement shall be governed by and interpreted and construed in accordance with the
internal laws of the State of New York, without regard to its principles of conflicts of laws, and
any dispute hereunder shall be brought in the appropriate court located in Westchester County, New
York or Erie County, New York.


<P align="left" style="font-size: 12pt; text-indent: 2%">5.&nbsp;This Agreement may not be assigned by any party hereto without the prior written consent of
the other parties hereto and the Lender, and no party hereto shall be relieved of its duties,
obligations or liabilities under this Agreement without the express written consent of the other
parties hereto and the Lender, regardless of assignments, delegations or other agreements with
third parties which may provide otherwise.


<P align="left" style="font-size: 12pt; text-indent: 2%">6.&nbsp;This Agreement shall be binding upon the parties hereto, their successors, permitted
assigns, heirs and legal representatives.


<P align="left" style="font-size: 12pt; text-indent: 2%">7.&nbsp;The invalidity of one or more phrases, sentences, clauses or paragraphs contained in this
Agreement shall not affect the validity of the remainder of this Agreement.


<P align="left" style="font-size: 12pt; text-indent: 2%">8.&nbsp;This Agreement contains the entire understanding of the parties and the Lender with respect
to the subject matter hereof and there are no other oral understandings, terms or conditions except
as expressly stated herein and none of the parties have relied upon any representation, express or
implied, not contained in this Agreement.


<P align="left" style="font-size: 12pt; text-indent: 2%">9.&nbsp;This Agreement may be executed in two (2)&nbsp;or more counterparts, each of which shall be
considered an original, and all of which shall be considered one and the same instrument.


<P align="left" style="font-size: 12pt; text-indent: 5%"><B>IN WITNESS WHEREOF</B>, the undersigned have duly executed this Agreement as of the date first
written above.


<P align="left" style="font-size: 12pt"><B>BORROWER:</B>


<P align="left" style="font-size: 12pt"><B>CASTLE BRANDS INC.</B>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">March&nbsp;11, 2013</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 12pt"><B>CASTLE BRANDS (USA)&nbsp;CORP.</B>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="57%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:/s/ Alfred J. Small
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:Alfred J. Small
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Its:Chief Financial Officer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:March&nbsp;11, 2013
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>VALIDITY PARTIES:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Alfred J. Small
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ John Glover</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>ALFRED SMALL</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>JOHN GLOVER</B></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Michael Becker
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ T. Kelley Spillane</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>MICHAEL BECKER</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>T. KELLEY SPILLANE</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt; display: none">2




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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>6
<FILENAME>exhibit5.htm
<DESCRIPTION>EX-10.2
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
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<HEAD>
<TITLE> EX-10.2 </TITLE>
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<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>CONFIDENTIAL</B></FONT>



<P align="left" style="font-size: 12pt">March&nbsp;11, 2013


<P align="left" style="font-size: 12pt">Castle Brands Inc.
<BR>
Castle Brands (USA)&nbsp;Corp.
<BR>
122 East 42<sup>nd</sup> Street, Suite&nbsp;4700
<BR>
New York, New York 10168
<BR>
Attention: Chief Financial Officer


<P align="left" style="font-size: 12pt; text-indent: 8%">Re: <U>Fee Letter</U>


<P align="left" style="font-size: 12pt">This Fee Letter (&#147;Fee Letter&#148;) sets forth the arrangement relating to compensation for certain
services rendered by the undersigned (the &#147;Participants&#148;).


<P align="left" style="font-size: 12pt">Pursuant to the terms of the Summary of Terms for Secured Inventory Financing Castle Brands &#150;
Jefferson&#146;s Bourbon (the &#147;Term Sheet&#148;), Castle Brands Inc. and Castle Brands (USA)&nbsp;Corp.
(collectively, the &#147;Borrower&#148;) agree to pay to the Participants the following fees and expenses:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the Effective Date (the &#147;Effective Date&#148;) of that certain Participation
Agreement by and among the Participants and Keltic Financial Partners II, LP, an
aggregate Closing and Commitment Fee of $15,000 (the &#147;Closing Fee&#148;).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On each of the second and third anniversaries of the Effective Date until the
Participants&#146; obligations under the Participation Agreement are terminated pursuant to
the terms of the Participation Agreement, an annual aggregate Commitment Fee of $15,000
(the &#147;Commitment Fee&#148;), payable annually in advance.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt">All of the foregoing fees are deemed fully earned when required to be paid and shall be
nonrefundable when paid. Your obligation to pay the foregoing fees will not be subject to
counterclaim or setoff for, or be otherwise affected by, any claim or dispute you may have.


<P align="left" style="font-size: 12pt">You agree to pay each Participant directly its percentage of the Closing Fee and the Commitment Fee
based on its Participation Percentage (as defined in the Participation Agreement) by wire transfer
in immediately available funds in accordance with the instructions provided below each
Participant&#146;s signature on the signature pages hereto.


<P align="left" style="font-size: 12pt">It is understood that this Fee Letter shall not constitute or give rise to any obligation on the
part of the Participants to provide any financing; such an obligation will arise only in accordance
with the terms set forth in the Term Sheet. In addition, it is understood that the Borrower shall
not have any obligation to the Participants other than the obligation to pay the Closing Fee and
the Commitment Fee in the manner specified herein. This Fee Letter may not be amended or any
provision hereof waived or modified except by an instrument in writing signed by each of the
parties hereto. This Fee Letter shall be governed by, and construed in accordance with, the laws
of the State of New York without reference to principles of conflicts of law. This Fee Letter may
be executed in any number of counterparts, each of which shall be an original and all of which,
when taken together, shall constitute one agreement. Delivery of an executed counterpart of a
signature page of this Fee Letter by facsimile or electronic transmission shall be effective as
delivery of a manually executed counterpart of this Fee Letter.

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sincerely,</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 12pt"><FONT style="font-size: 11pt"><U><B>PARTICIPANTS:</B></U>
</FONT>

<P align="left" style="font-size: 11pt; text-indent: 14%"><B>FROST GAMMA INVESTMENTS TRUST</B>

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="18%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:<BR>
Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Dr.&nbsp;Phillip Frost<BR>
Trustee</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 11pt"><B>MARIN BLEU INC.</B>

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="18%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:<BR>
Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Momoko Matsumura<BR>
President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 11pt">/s/ Mark E. Andrews
<BR>
<B>MARK E. ANDREWS, III</B>


<P align="left" style="font-size: 11pt; text-indent: 14%">/s/ Susan M. Lampen


<P align="left" style="font-size: 11pt"><B>SUSAN M. LAMPEN</B>


<P align="left" style="font-size: 11pt; text-indent: 14%">/s/ Michael S. Liebowitz


<P align="left" style="font-size: 11pt"><B>MICHAEL S. LIEBOWITZ</B>


<P align="left" style="font-size: 11pt; text-indent: 14%">/s/ Chester Franklin Zoeller


<P align="left" style="font-size: 11pt"><B>CHESTER FRANKLIN ZOELLER III</B>


<P align="left" style="font-size: 11pt"><FONT style="font-size: 12pt"><B><I>ACKNOWLEDGED AND AGREED, as of the</I></B>
<BR>
<B><I>date first written above:</I></B>
</FONT>

<P align="left" style="font-size: 12pt"><B>CASTLE BRANDS INC.</B>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 12pt"><B>CASTLE BRANDS (USA)&nbsp;CORP.</B>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Alfred J. Small</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt; display: none">




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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>7
<FILENAME>exhibit6.htm
<DESCRIPTION>EX-99.1
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
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<HEAD>
<TITLE> EX-99.1 </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><FONT style="font-size: 14pt"><B>PARTICIPATION AGREEMENT</B></FONT>



<P align="center" style="font-size: 14pt"><B>between</B>



<P align="center" style="font-size: 14pt"><B>KELTIC FINANCIAL PARTNERS II, LP</B><BR>
(&#147;<I>Lead Lender</I>&#148;)



<P align="center" style="font-size: 14pt"><B>and</B>



<P align="center" style="font-size: 14pt"><B>FROST GAMMA INVESTMENTS TRUST,<BR>
MARK E. ANDREWS, III,<BR>
SUSAN M. LAMPEN,<BR>
MICHAEL S. LIEBOWITZ,<BR>
MARIN BLEU INC.</B>



<P align="center" style="font-size: 14pt"><B>and</B>



<P align="center" style="font-size: 14pt"><B>CHESTER FRANKLIN ZOELLER III</B><BR>
(&#147;<I>Participants</I>&#148;)



<P align="center" style="font-size: 14pt"><FONT style="font-size: 11pt">Dated March&nbsp;11, 2013</FONT>







<P align="center" style="font-size: 10pt; display: none">1
<!-- PAGEBREAK -->




<P align="center" style="font-size: 11pt"><U><B>PARTICIPATION AGREEMENT</B></U>



<P align="left" style="font-size: 11pt">This Participation Agreement (&#147;<B><I>Agreement</I></B>&#148;) is made and entered into </FONT><FONT style="font-size: 12pt">this 11th day of March,
2013 (the &#147;<B><I>Effective Date</I></B>&#148;) </FONT><FONT style="font-size: 11pt">between <B>KELTIC FINANCIAL PARTNERS II, LP</B>, Delaware limited
partnership (&#147;<B><I>Lead Lender</I></B>&#148;), <B>FROST GAMMA INVESTMENTS TRUST</B>, a trust (&#147;<B><I>Frost Gamma</I></B>&#148;), <B>MARK E.
ANDREWS, III</B>, an individual (&#147;<B><I>Andrews</I></B>&#148;), <B>SUSAN M. LAMPEN</B>, an individual (&#147;<B><I>Lampen</I></B>&#148;), <B>MICHAEL S.
LIEBOWITZ</B>, an individual (&#147;<B><I>Liebowitz</I></B>&#148;), <B>MARIN BLEU INC.</B>, a Florida corporation (&#147;<B><I>Marin</I></B>&#148;) and
<B>CHESTER FRANKLIN ZOELLER III</B>, an individual (&#147;<B><I>Zoeller</I></B>&#148;) (Frost Gamma, Andrews, Lampen, Liebowitz,
Marin and Zoeller to be individually be referred to as a &#147;<B><I>Participant</I></B>&#148;, and collectively as the
&#147;<B><I>Participants</I></B></FONT><FONT style="font-size: 12pt">&#148;).
</FONT>

<P align="left" style="font-size: 12pt"><FONT style="font-size: 11pt"><U><B>RECITALS</B></U>:
</FONT>

<P align="left" style="font-size: 11pt"><B>CASTLE BRANDS INC.</B>, a corporation organized under the laws of the State of Florida (&#147;<B><I>CBI</I></B>&#148;) and
<B>CASTLE BRANDS (USA)&nbsp;CORP</B>., a corporation organized under the laws of the State of Delaware
(&#147;<B><I>CBUSA</I></B>&#148;) (individually and collectively, &#147;<B><I>Borrower</I></B>&#148;) and Lead Lender are parties to a Loan and
Security Agreement dated as of August&nbsp;19, 2011, as amended by a First Amendment dated as of July
23, 2012 (together, the &#147;<B><I>Credit Agreement</I></B>&#148;), in connection with which Borrower delivered an Amended
and Restated Revolving Credit Note dated July&nbsp;23, 2012 in a maximum principal amount of $7,000,000
(the &#147;<B><I>Revolving Credit Note</I></B>&#148;), and other agreements, documents and instruments in connection
therewith (all of the foregoing, as the same may be amended, restated, or otherwise modified from
time to time to be collectively referred to as the &#147;<B><I>Loan Documents</I></B>&#148;).


<P align="left" style="font-size: 11pt">Pursuant to the terms of the Loan Documents, Lender has extended a &#147;Revolving Credit&#148; to Borrower
in a maximum principal amount of $7,000,000. Repayment of Borrower&#146;s obligations to Lender under
the Loan Documents is secured by (among other things) the grant by Borrower to Lender of a security
interest in and to all of Borrower&#146;s right, title and interest in and to all of Borrower&#146;s personal
property as provided in the Loan Documents (the &#147;<B><I>Collateral</I></B>&#148;).


<P align="left" style="font-size: 11pt">Borrower has requested that Lender increase the principal amount of the Revolving Credit by
$1,000,000, with a resulting maximum principal amount of $8,000,000, and provide a Term Loan in the
amount of $2,500,000 in connection with the acquisition of specified inventory by Borrower.


<P align="left" style="font-size: 11pt">Lead Lender desires to sell to each of the Participants, and each of the Participants desire to
purchase from Lead Lender, an undivided participation interest in and to the Term Loan and the
inventory purchased with the proceeds thereof, upon the terms and conditions set forth herein.


<P align="left" style="font-size: 11pt"><U><B>AGREEMENT:</B></U>


<P align="left" style="font-size: 11pt">1.&nbsp;<U><B>DEFINITIONS</B></U><B>. </B>In addition to the terms defined in the Recitals, above (a)&nbsp;capitalized
terms used in this Agreement which are not defined herein have the meanings ascribed to such terms
in the Loan Agreement, (b)&nbsp;terms defined in the singular have the same meaning when used in the
plural and <I>vice versa</I>, and (c)&nbsp;the following terms shall have the following meanings when used
herein:


<P align="left" style="font-size: 11pt"><B><I>&#147;Andrews Commitment&#148; </I></B>means an amount equal to Fifty Thousand and 00/100 Dollars ($50,000.00), which
is the maximum dollar amount of Andrews&#146; participation in the Term Loan.


<P align="left" style="font-size: 11pt"><B><I>&#147;Bourbon Collateral</I></B>&#148; means the Borrower&#146;s raw material, work in progress and finished goods
inventory of Borrower&#146;s bourbon inventory stock purchased with the proceeds of the Term Loan on or
about the date of this Agreement.


<P align="left" style="font-size: 11pt">&#147;<B><I>Bourbon Inventory Release</I></B>&#148; means the completion of a bottling run of bourbon from the Bourbon
Collateral.


<P align="left" style="font-size: 11pt"><B><I>&#147;Frost Gamma Commitment&#148; </I></B>means an amount equal to Five Hundred Thousand and 00/100 Dollars
($500,000.00), which is the maximum dollar amount of Frost Gamma&#146;s participation in the Term Loan.


<P align="left" style="font-size: 11pt"><B><I>&#147;Loan Documents&#148; </I></B></FONT><FONT style="font-size: 12pt">means</FONT><FONT style="font-size: 11pt">, individually and collectively, the Borrower Documents, the Senior
Guarantor Documents, and all other agreements, documents and instruments executed and/or delivered
to Lead Lender in connection therewith, as the same may be amended, restated, extended or otherwise
modified from time to time.
</FONT>

<P align="left" style="font-size: 11pt">&#147;<B><I>Majority-in-Interest&#148; </I></B>means one or more Participants holding one or more Participation Percentages
exceeding fifty percent (50.0%).


<P align="left" style="font-size: 11pt"><B><I>&#147;Material Default&#148; </I></B>means (i)&nbsp;a default by Borrower in the payment of any sum due Lead Lender under
the Loan Agreement with respect to the Term Loan which remains unpaid for ten (10)&nbsp;days following
the date such payment is due or declared due, (ii)&nbsp;a &#147;Default&#148; or &#147;Event of Default&#148; (as such terms
are defined in the Loan Agreement) caused by Borrower&#146;s failure to comply with any financial
covenant under the Loan Agreement, or (iii)&nbsp;the filing by or against Borrower of a proceeding under
any state or federal bankruptcy or insolvency law.


<P align="left" style="font-size: 11pt"><B><I>&#147;Lampen Commitment&#148; </I></B>means an amount equal to Fifty Thousand and 00/100 Dollars ($50,000.00), which
is the maximum dollar amount of Andrews&#146; participation in the Term Loan.


<P align="left" style="font-size: 11pt"><B><I>&#147;Liebowitz Commitment&#148; </I></B>means an amount equal to Fifty Thousand and 00/100 Dollars ($50,000.00),
which is the maximum dollar amount of Andrews&#146; participation in the Term Loan.


<P align="left" style="font-size: 11pt"><B><I>&#147;Marin Commitment&#148; </I></B>means an amount equal to Seventy Five Thousand and 00/100 Dollars ($75,000.00),
which is the maximum dollar amount of Andrews&#146; participation in the Term Loan.


<P align="left" style="font-size: 11pt"><B><I>&#147;Participant&#146;s Commitment&#148; </I></B>and <B><I>&#147;Participants&#146; Commitments&#148; </I></B>means, individually and collectively,
the Andrews, Frost Gamma, Lampen, Liebowitz, Marin and Zoeller Commitments.


<P align="left" style="font-size: 11pt">&#147;<B><I>Participation Interest Rate</I></B>&#148; means eleven percent (11.00%) <I>per annum</I>.


<P align="left" style="font-size: 11pt"><B><I>&#147;Participation Percentage&#148; </I></B>means, with respect to each Participant, the percentage obtained by
dividing (x)&nbsp;the Participant&#146;s Commitment, by (y)&nbsp;the Total Commitments.


<P align="left" style="font-size: 11pt"><B><I>&#147;Payment Percentage&#148; </I></B>means, with respect to each Participant, the percentage obtained by dividing
the (x)&nbsp;Participant&#146;s Commitment, by (y)&nbsp;the original principal amount of the Term Loan.


<P align="left" style="font-size: 11pt"><B><I>&#147;Reimbursable Expenses&#148; </I></B>means all reasonable out-of-pocket costs and expenses incurred by Lead
Lender in connection with the administration of the Loan Documents and/or enforcement of its rights
and remedies against Borrower, including without limitation all court costs, collection charges and
attorneys&#146; fees and disbursements.


<P align="left" style="font-size: 11pt">&#147;<B><I>Run Value</I></B>&#148; of a Bourbon Inventory Release means the purchase price of the Bourbon Inventory
Release, based on the Borrower&#146;s acquisition cost of such Bourbon Collateral.


<P align="left" style="font-size: 11pt"><B><I>&#147;Total Commitments&#148; </I></B>means the sum of the Participants&#146; Commitments.


<P align="left" style="font-size: 11pt"><B><I>&#147;Zoeller Commitment&#148; </I></B>means an amount equal to Twenty Five Thousand and 00/100 Dollars ($25,000.00),
which is the maximum dollar amount of Zoeller&#146;s participation in the Revolving Credit.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>PURCHASE AND SALE OF PARTICIPATION: CLOSING.</B></U></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 11pt"><B>2.1. Purchase and Sale of Participations. </B>Subject to the terms and conditions of this Agreement,
Lead Lender hereby transfers and sells to each Participant an undivided interest in the Term Loan
and the Bourbon Collateral in an amount equal to such Participant&#146;s Commitment (a Participant&#146;s
<B><I>&#147;Participation Interest&#148;</I></B>). A Participation Interest shall include participation, to the extent and
with the priority provided in <B>Section&nbsp;5.1 </B>below, in Lender&#146;s security interests in and to the
Bourbon Collateral. This sale of Participation Interests is made by Lead Lender absolutely without
recourse and without representation or warranty on Lead Lender&#146;s part except as expressly provided
herein and each Participant shall be fully and irrevocably at risk to the extent of a Participation
Interest in the Term Loan. Pursuant to the terms of this Agreement each Participant agrees to fund
(i)&nbsp;a portion of the total outstanding Term Loan up to such Participant&#146;s Commitment at the closing
hereof, and (ii)&nbsp;such Participant&#146;s Participation Percentage of all Reimbursable Expenses.


<P align="left" style="font-size: 11pt"><B>2.2. Closing. </B>The purchase and sale of the Participation Interests contemplated hereby shall be
consummated on the date of execution of this Agreement (the &#147;<B><I>Closing Date</I></B>&#148;). On the Closing Date,
each Participant shall pay to Lead Lender by wire transfer of immediately available funds (in
accordance with the wire transfer instructions set forth below Lead Lender&#146;s signature) an amount
equal to such Participant&#146;s Commitment.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>LEAD LENDER&#146;S REPRESENTATIONS AND WARRANTIES; ACKNOWLEDGMENTS.</B></U></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 11pt"><B>3.1. Existence, Power and Authority. </B>Each party to this Agreement hereby represents and warrants
to the other parties that (i)&nbsp;if not a natural person, such party is duly organized, validly
existing and in good standing under the laws of the state of its formation, and the execution and
delivery and performance hereof have been fully authorized by all necessary organizational action
of such party, and (ii)&nbsp;such party has full power, right and authority to enter into and perform
its obligations under and in connection with this Agreement,.


<P align="left" style="font-size: 11pt"><B>3.2. Approval, </B><B><I>etc</I></B><B>. </B>Each party to this Agreement hereby represents and warrants to the other
parties that no approval, authorization, order, notice to or consent of, or registration or filing
with, any government authority or any other Person, is required in connection with the execution,
delivery or performance by such party of this Agreement.


<P align="left" style="font-size: 11pt"><B>3.3. Legal Investment; Authority. </B>Each Participant hereby represents and warrants to Lead Lender
that such Participant has full right, power and authority to purchase such Participant&#146;s
Participation Interest as provided in this Agreement, such purchase constitutes a legal investment
of such Participant, and such Participant has no obligation to sell, pledge, transfer, assign,
encumber or otherwise dispose of all or any portion of such Participant&#146;s Participation Interest to
any other Person.


<P align="left" style="font-size: 11pt"><B>3.4. Participant Credit Decisions. </B>Each Participant has been given adequate opportunity to review
and has, independently and without reliance on Lead Lender, investigated, appraised and evaluated
the transactions contemplated by this Agreement and the Loan Documents, including but not limited
to financial information and other data relating to Borrower and has made its own analysis of
Borrower, the Collateral, the Bourbon Collateral, Borrower&#146;s business, financial condition and
general credit worthiness, the Term Loan and the Revolving Credit, or the enforceability, legality,
validity, accuracy or completeness of any of the Loan Documents, or any other matter having any
relation to the Loan Documents, the Collateral, the Bourbon Collateral, the Term Loan, the
Revolving Credit, or the granting of a participation therein, all as such Participant has deemed
necessary, prudent or advisable in order to enable it to make its own determination and decision to
enter into this Agreement and to participate in the Term Loan in accordance with the terms hereof.
Such Participant is entering into this Agreement relying entirely upon such independent evaluation
and without reliance upon any oral or written representations of any kind or nature by Lead Lender
or its officers, agents or employees with respect to Borrower, the Collateral, the Bourbon
Collateral, Borrower&#146;s business, financial condition and general credit worthiness, the Revolving
Credit, or the enforceability, legality, validity, accuracy or completeness of any of the Loan
Documents, or the current or projected financial condition of Borrower or any other matter having
any relation to the Loan Documents, the Bourbon Collateral, the Collateral, the Term Loan, the
Revolving Credit or the granting of a participation therein, Participant acknowledges and agrees
that it shall look only to the Bourbon Collateral and proceeds of the Bourbon Collateral received
and collected by Lead Lender from Borrower, and that Lead Lender is not liable out of its own funds
for payment or repayment of any portion of principal, interest, fees, charges, or any other
payments under the Loan Documents or hereunder.


<P align="left" style="font-size: 11pt"><B>3.5. No Tax Withholding. </B>Each Participant hereby represents and warrants to Lead Lender that such
Participant is entitled to receive all payments hereunder without the withholding of any tax and
will furnish to Lead Lender such forms, certifications, statements and other documents as Lead
Lender may request from time to time to evidence such Participant&#146;s exemption from the withholding
of any tax imposed by any jurisdiction or to enable Lead Lender to comply with any applicable laws
or regulations relating thereto. Such Participant shall reimburse and indemnify Lead Lender for any
and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed upon, incurred by
or asserted against Lead Lender due to its reliance upon the representations made hereunder that
such Participant is exempt from the withholding of tax.


<P align="left" style="font-size: 11pt"><B>3.6. Participant Acknowledgments. </B>Each Participant acknowledges and agrees that Lead Lender makes
no representation or warranty except to the extent expressly contained herein. Without limiting
the generality of the foregoing, Lead Lender assumes no liability and makes no representation,
warranty or guarantee, express or implied, with respect to Borrower, the Collateral, the Bourbon
Collateral, Borrower&#146;s business, financial condition and general credit worthiness, and the
Revolving Credit, or the enforceability, legality, validity, accuracy or completeness of any of the
Loan Documents, or any other matter having any relation to the Loan Documents, the Collateral, the
Bourbon Collateral, the Revolving Credit, the Term Loan or the granting of a participation therein,
except as expressly provided herein.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>LOAN ADMINISTRATION.</B></U></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 11pt"><B>4.1. Loan Administration. </B>Lead Lender agrees to act as servicer with respect to the Term Loan for
the benefit of the Participants and Lead Lender as set forth in this Agreement, using Lead Lender&#146;s
own facilities, employees and agents. Lead Lender shall administer and service the Term Loan
consistent with its usual and customary servicing practices for similar financing arrangements and
with the same degree of care that it would exercise in making and administering similar financing
arrangements exclusively for its own account. Lead Lender shall not be in breach hereof or liable
for any action or failure to act or any error of judgment, mistake or oversight on Lead Lender&#146;s
part or on the part of any of Lead Lender&#146;s agents, officers, employees or attorneys with respect
to the Participants, Borrower, the Loan Documents, the Term Loan or this Agreement, except for Lead
Lender&#146;s gross negligence or willful misconduct and, in such event, Lead Lender shall only be
liable to each Participant for the actual losses, if any, suffered by such Participant which are
directly caused by Lead Lender&#146;s gross negligence or willful misconduct. Notwithstanding anything
to the contrary contained herein, in no event shall Lender be liable to any Participant for any
indirect, punitive, exemplary or consequential damages.


<P align="left" style="font-size: 11pt">Lead Lender shall have the sole and exclusive right in its sole discretion to manage and administer
the Term Loan and Collections, to make decisions vested in Lead Lender under the Loan Documents,
and to perform the day to day administration of the Term Loan, collection of the Accounts and
application of Proceeds of Collateral in accordance with and as set forth in the Loan Documents,
subject only to the restrictions set forth in <B>Sections&nbsp;4.3 a</B>nd <B>4.5 </B>hereof. Without limiting the
above rights, until the principal amount of the Term Loan and all interest due thereon is paid in
full, Lead Lender shall have full and exclusive right and authority to:



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(a)&nbsp;collect all payments due under the terms of the Loan Documents as they become due;



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(b)&nbsp;receive and hold all Loan Documents and receipts thereunder for the benefit of each
Participant and Lead Lender as their respective interests may appear in accordance with the
terms and provisions of this Agreement and the Loan Documents; and



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(c)&nbsp;receive all notices and information from Borrower under the Loan Documents.


<P align="left" style="font-size: 11pt">Subject to the provisions of <B>Section&nbsp;4.5 </B>hereof, each Participant irrevocably authorizes Lead
Lender to take action on such Participant&#146;s behalf and to exercise such powers as are specifically
or generally or by implication delegated to Lead Lender by the terms of this Agreement together
with all rights, powers and directions as are reasonably incidental thereto. Participant
acknowledges and agrees that Lead Lender&#146;s duties as servicer of the Term Loan are administrative
in nature and nothing contained herein shall impose upon Lead Lender and Lead Lender shall not be
deemed to have assumed any fiduciary obligation toward or relationship of agency or trust with or
for Participant.


<P align="left" style="font-size: 11pt">Lead Lender shall further be entitled to assume and rely on the authenticity of all instruments and
documents and copies thereof delivered to or received by it from any Participant and the
genuineness of all signatures thereon. Lead Lender may consult with legal counsel, accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts. No
Participant shall contact any Account Debtor for any purpose without the prior written consent of
Lead Lender. No Participant shall initiate any judicial action or other proceeding to enforce its
rights pursuant to this Agreement against Borrower or any Account Debtor with respect to the Term
Loan, any Bourbon Collateral, or any other Collateral, or take any equivalent action against
Borrower or an Account Debtor, unless, after a Material Default which has not been waived by a
Majority-in-Interest (as applicable in accordance with <B>Section&nbsp;4.5 </B>below), Lead Lender has failed
or refused to do so after being directed in writing by the Majority-in-Interest.


<P align="left" style="font-size: 11pt"><B>4.2. Reliance. </B>Lead Lender shall be entitled to rely on all instructions and notices provided by a
Participant to Lead Lender.


<P align="left" style="font-size: 11pt"><B>4.3. Remittances; Reimbursable Expenses; Application of Collections. </B>Prior to the time the Credit
Facilities are deemed to be <B><I>&#147;in liquidation&#148;</I></B>, as defined in <B>Section&nbsp;5.2 </B>below, and subject to
<B>Articles 5, 7, 8 </B>and <B>9 </B>hereof, any Proceeds of Collateral received by Lead Lender and applied to
the payment of principal or interest on the Term Loan shall be applied as set forth in this <B>Section
4.3</B>.



<P align="left" style="margin-left:2%; font-size: 11pt">(a) <U>Principal Payments</U>. On the date of a Bourbon Inventory Release, and subject to the
amount of Proceeds of Receivables then available to Lead Lender for application to the
repayment of principal of the Term Loan pursuant to the Loan Documents (&#147;<B><I>Term Loan Available
Proceeds</I></B>&#148;), Lead Lender shall apply Term Loan Available Proceeds to the repayment of the
principal amount of the Term Loan (i)&nbsp;in an amount equal to the Run Value of such Bourbon
Inventory Release, or (ii)&nbsp;if the Run Value of such Bourbon Inventory Release exceeds the Term
Loan Available Proceeds, in an amount equal to the Term Loan Available Proceeds. If any
repayment to the principal amount of the Term Loan is less than the Run Value of the related
Bourbon Inventory Release, Lead Lender shall apply Term Loan Available Proceeds as promptly as
possible to the repayment of the principal amount of the Term Loan to address such deficiency.
Lead Lender shall pay to each Participant its Payment Percentage of Term Loan Available
Proceeds applied to the repayment of the principal amount of the Term Loan within two (2)
Banking Days of the date of application.



<P align="left" style="margin-left:2%; font-size: 11pt">(b) <U>Interest Payments</U>. On the first Banking Day of each month Lead Lender will pay to
each Participant out of Proceeds of Receivables such Participant&#146;s Payment Percentage of
interest accrued on the Term Loan at the Participation Interest Rate during the preceding
month.



<P align="left" style="margin-left:2%; font-size: 11pt">(c) <U>Payments to Participants</U>. Lead Lender will provide each Participant with a monthly
accounting of (i)&nbsp;all interest accrued and payable on the Term Loan for the preceding month,
(ii)&nbsp;all Bourbon Inventory Releases during the preceding month, (iii)&nbsp;the Run Value of each
Bourbon Inventory Release during the preceding month, (iv)&nbsp;the amount of all Term Loan
Available Proceeds applied to the repayment of the principal of the Term Loan during the
preceding month, and (v)&nbsp;all Reimbursable Expenses incurred by Lead Lender during the preceding
month. All payments by Lead Lender to Participants shall be made by wire transfer of
immediately available funds in accordance with the wire transfer instructions set forth below
each Participant&#146;s signatures hereto, and as such instructions may be changed by each
Participant from time to time upon written notice to Lead Lender.



<P align="left" style="margin-left:2%; font-size: 11pt">(d) <U>Reimbursable Expenses</U>. Each Participant hereby authorizes Lead Lender to retain
such attorneys, accountants and other experts as Lead Lender in its judgment may deem
appropriate for the administration of the Loan Documents and the enforcement of remedies
contained therein. Upon five (5)&nbsp;days&#146; notice from Lead Lender, each Participant shall pay such
Participant&#146;s Participation Percentage of all Reimbursable Expenses allocated to the Term Loan
incurred by Lead Lender to the extent not paid by or on behalf of Borrower or recovered by
Lender from Collections. Unless Lead Lender provides the Participants with information
reasonably satisfactory to Participants that any Reimbursable Expense is to be allocated solely
to the Term Loan, Reimbursable Expenses shall be allocated between the Revolving Credit and the
Term Loan in proportion to the then-outstanding principal balance of each such Loan.



<P align="left" style="margin-left:2%; font-size: 11pt">(e) (f) <U>Collections by a Participant</U>. Any Receivables, Collateral, Proceeds of
Collateral, sums or assets received by a Participant from or for the account of Borrower or any
Senior Guarantor with respect to the Credit Facilities, Receivables, Collateral or the Loan
Documents, whether before or after the time the transaction with Borrower is deemed to be &#147;in
liquidation&#148;, whether through payment, set-off, or otherwise, shall be held in trust for the
benefit of Lead Lender and the Participants and shall be promptly delivered to Lead Lender for
application as provided herein.



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(g) <U>Invalidated Payments</U>. To the extent that any amounts received by a
Participant with respect to the Term Loan, whether by payment or otherwise, are subsequently
invalidated, declared to be fraudulent or preferential, set aside, or required to be repaid to,
Borrower, a trustee, receiver or any other Person for any reason (including without limitation
as a result of any bankruptcy, insolvency, reorganization, moratorium or similar law, statute,
act or code of any jurisdiction), then such Participant shall immediately repay all such
amounts to Lead Lender.



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(h) <U>Compensation of Lead Lender</U>. In consideration of its servicing and
administration of the Credit Facilities, Receivables, Collateral and Loan Documents, Lead
Lender shall be entitled to all fees, commissions and other compensation payable by Borrower
under the Loan Agreement (&#147;<B><I>Servicing Fees</I></B>&#148;). The sole compensation to the Participants under
the Loan Documents shall be the payment of interest with respect to such Participant&#146;s
Commitment as provided in <B>Section&nbsp;4.</B><B>3(a)</B> above.


<P align="left" style="font-size: 11pt"><B>4.4. Loan Documents; Loan Information. </B>Lead Lender shall retain physical possession of each Loan
Document and shall deliver to each Participant a true and complete copy of the Loan Documents.
Lead Lender shall maintain books and records as to the Term Loan and Collections, including, but
not limited to, a record of amounts of Collections applied to repayment of the principal amount of,
and applied to payment of interest on, the Term Loan. Lead Lender shall furnish to the
Participants any information reasonably requested by the Participants relating to the Term Loan,
Collateral and Bourbon Collateral. All reports and other information furnished by Lead Lender to
any Participant, whether in writing or orally, from any third party shall be without representation
or warranty by Lead Lender with respect to their truth or accuracy, and except as set forth above,
Lead Lender shall have no responsibility with respect to any such reports or information or for
verifying such information. All reports and information shall be furnished to, and received by,
each Participant on a strictly confidential basis for the exclusive use of such Participant. A
Participant shall have the right at any reasonable time during the normal business hours of Lead
Lender, upon not less than five (5)&nbsp;Business Days&#146; written notice, to have access to and, at such
Participant&#146;s expense, examine and copy, any and all books, records and documents of Lead Lender
relating to the Term Loan, Collateral and Bourbon Collateral.


<P align="left" style="font-size: 11pt"><B>4.5. Waivers and Amendments of Loan Documents; Releases of Collateral. </B>Without the prior written
consent of the Majority-in-Interest, Lead Lender will not waive any Material Default, increase the
principal amount of the Term Loan, decrease the interest rate applicable to the Term Loan, release
or terminate any security interests in any Collateral, release any Senior Guarantor or any other
Person providing collateral support for the Term Loan, or extend the maturity date of the Term
Loan. Except as provided as provided above, Lead Lender may in its discretion and without the
consent of any Participant amend, modify or supplement any of the Loan Documents, or waive its
rights thereunder, so long as any such amendment, modification or supplement does not materially
and adversely affect a Participant.


<P align="left" style="font-size: 11pt">If Lead Lender desires to make any amendment, provide any waiver, or release any Collateral or
Person for which the consent of the Majority-in-Interest is required pursuant to the foregoing
paragraph, Lead Lender will furnish to each Participant a written notice specifying the term to be
amended or modified or the default to be waived, the Collateral or Person to be released, and the
terms and conditions of the proposed amendment, modification, waiver or release. If the
Majority-in-Interest declines to give its consent to any such amendment, modification, waiver or
release, it must notify Lead Lender in writing of such fact within five (5)&nbsp;Business Days
thereafter. If the Majority-in-Interest fails to give such notice, its consent to such amendment,
modification, waiver or release shall be deemed to have been given. If the Majority-in-Interest
delivers notice of its refusal to consent where required for an amendment, modification, waiver or
release requested by Lead Lender, Lead Lender may at its sole option, exercisable within thirty
(30)&nbsp;days after Agent&#146;s response and upon two (2)&nbsp;Business Days&#146; written notice to each
Participant&#146;s repurchase each Participant&#146;s Participation Interest hereunder, in whole and not in
part, by paying each Participant an amount equal to the principal amount of such Participant&#146;s
Participation Interest outstanding on the date of purchase, together with interest accrued thereon
at the Participation Interest Rate, less its applicable Participation Percentage of all
Reimbursable Expenses then outstanding.


<P align="left" style="font-size: 11pt"><B>4.6. Bankruptcy Proceedings. </B>Lead Lender shall, after giving prior written notice to the
Participants of any proceeding instituted by or against Borrower, any Senior Guarantor or any other
Person providing collateral support of the Term Loan under any federal or state law, now existing
or hereafter enacted or amended, relating to bankruptcy, insolvency, reorganization or other form
of debtor relief, have the right and authority to file any claims necessary to protect the
interests of Lead Lender and Participants and vote for or against any plan, or otherwise take any
action in connection therewith. All recoveries by Lead Lender in any such proceedings (except to
the extent applicable to post-petition financing provided solely by Lead Lender) shall be received
by Lead Lender for the benefit of Participants and Lead Lender, and shall be promptly divided
between the Participants and Lead Lender in accordance with this Agreement. Following Borrower&#146;s
bankruptcy (a)&nbsp;no Participant shall unilaterally provide post-petition financing or financing
without Lead Lender&#146;s prior written consent, and (b)&nbsp;Lead Lender, in its discretion, may
unilaterally provide post-petition financing or financing without any Participant&#146;s consent.


<P align="left" style="font-size: 11pt"><B>4.7. Absence of Recourse. </B>Each Participant acknowledges and agrees that there is limited recourse
for the Term Loan granted by Lead Lender to Borrower under the Loan Agreement, and that repayment
of the Term Loan is expected only from the receipt of Proceeds of Collateral under the Loan
Documents.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>LIQUIDATION PROCEDURE.</B></U></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 11pt"><B>5.1. Priorities in Collateral. </B>Lead Lender, Agent and each Participant acknowledges and agrees
that the Collateral secures repayment of Borrower&#146;s Obligations with respect to the Term Loan in
the following order of priority:



<P align="left" style="margin-left:4%; font-size: 11pt">(a) <U>Bourbon Collateral.</U> Prior to the final and indefeasible payment in full of
Borrower&#146;s Obligations with respect to the Term Loan, the Bourbon Collateral shall first
secure payment of Borrower&#146;s Obligations with respect to the Term Loan, and then the
Revolving Credit.



<P align="left" style="margin-left:4%; font-size: 11pt">(b) <U>Collateral other than Term Loan Collateral.</U> Prior to the final and indefeasible
payment in full of Borrower&#146;s Obligations with respect to the Revolving Credit, all
Collateral other than the Term Loan Collateral shall first secure payment of Borrower&#146;s
Obligations with respect to the Revolving Credit, and then the Term Loan.


<P align="left" style="font-size: 11pt"><B>5.2. Application of Proceeds of Collateral During Liquidation. </B>If there is a &#147;Default&#148; or &#147;Event
of Default&#148; under the Loan Documents and Lead Lender takes action to enforce Lead Lender&#146;s rights
against Borrower, or if Lead Lender makes demand for payment under the Loan Agreement, or if Lead
Lender or Borrower terminates the Loan Agreement, then the Credit Facilities shall immediately be
deemed to be &#147;<B><I>in liquidation</I></B>&#148; and each Participant will, if necessary, promptly thereafter by wire
transfer of immediately available funds make such payments as may be required so that each
Participant&#146;s Participation Interest in Reimbursable Expenses allocated to the Term Loan pursuant
to the terms hereof and remaining unpaid shall equal its applicable Participation Percentage
thereof. After the Credit Facilities are deemed to be in liquidation and subject to the provisions
of <B>Section&nbsp;5.1</B>, all Collateral received or held by Lead Lender to then be applied to the payment of
Borrower&#146;s Obligations with respect to the Term Loan (taking into account the priorities in
Collateral described in <B>Section&nbsp;5.1) </B>shall be applied to the Term Loan as follows:



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(a) <U>First</U>, to the expenses, including attorneys&#146; fees, incurred in effecting such
recovery and in enforcing any right or remedy under the Loan Documents in proportion to the
then-outstanding principal balance of each of the Term Loan and the Revolving Credit;



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(b) <U>Second</U>, to any Servicing Fees due to Lead Lender;



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(c) <U>Third</U>, <I>pro rata </I>to Lead Lender and each Participant for all accrued interest
payable with respect to the Term Loan to Lead Lender and the Participants; and



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(d) <U>Fourth</U>, <I>pro rata </I>to Lead Lender and each Participant for the unpaid principal
amount of their respective interests in the Term Loan.


<P align="left" style="font-size: 11pt">6.&nbsp;<U><B>RELATIONSHIP OF THE PARTIES.</B></U> This Agreement is not intended to constitute, and shall
not be construed to establish, a partnership or joint venture between Lead Lender or any
Participant or by or among any Participants. Lead Lender and each Participant will have no
obligation or responsibility to any other Participant except as specifically stated herein. The
execution of this Agreement, the performance of the terms or provisions hereof, and the performance
or exercise of any obligations or rights pursuant hereto (including a Participant&#146;s purchase of
interests in the Term Loan) shall not constitute Participant as owner, holder, purchaser or seller
of any security (as that term is defined in the Securities Act of 1933 or the Security Exchange Act
of 1934) issued, owned, purchased or sold by Lead Lender, either as principal or as agent for the
Borrower. Each Participant is purchasing and acquiring legal and equitable ownership of its
Participation Interest and not making a loan to Lead Lender, and no debtor-creditor or agency
relationship exists between any Participant and Lead Lender as a result of this Agreement.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>DEFAULT OF PARTICIPANT.</B></U></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 11pt"><B>7.1. Participant Payment Default. </B>Upon failure of any Participant to make any payment of its
applicable Participation Percentage of any Reimbursable Expenses or other payment required to be
made under the terms of this Agreement which continues unremedied for a period of five (5)&nbsp;Banking
Days after the date on which such payment was due and payable under this Agreement (a &#147;<B><I>Participant
Payment Default</I></B>&#148;), Lead Lender shall have the right (but not the obligation) to terminate this
Agreement with respect to such Participant without, however, relieving such Participant from any
liability hereunder for loss, cost, damage and expense suffered by Lead Lender as result of the
Participant Payment Default, and thereafter, at Lead Lender&#146;s option, Lead Lender may, at its
option (i)&nbsp;place all or any part of such Participant&#146;s Participation Interest with one or more
entities, (ii)&nbsp;purchase such Participant&#146;s Participation Interest for a purchase price equal to the
then outstanding principal balance of such Participant&#146;s Participation Interest, plus interest and
other amounts payable to such Participant hereunder with respect thereto, minus any amount which
such Participant has failed to pay as required by this Agreement and Participant&#146;s applicable
Participation Percentage of any Reimbursable Expenses, or (iii)&nbsp;repay Participant&#146;s Participation
Interest from Collections as provided in <B>Section&nbsp;4.3 </B>of this Agreement. In addition, accrued
interest to the date of such default shall be paid to a defaulting Participant when and if such
amounts are actually received from Collections. In the event that Lead Lender exercises any of the
foregoing remedies, Lead Lender&#146;s obligations to a defaulting Participant under this Agreement
shall terminate.


<P align="left" style="font-size: 11pt">Lead Lender may, in its discretion, seek injunctive relief in accordance with <B>Section&nbsp;7.3 </B>hereof as
a result of a Participant Payment Default, or, pursue legal action against the Participant for
damages suffered by Lead Lender, including all amounts funded by Lead Lender on Participant&#146;s
behalf following a Participant Payment Default.


<P align="left" style="font-size: 11pt"><B>7.2. Assigned Payments; Excess Contributions. </B>Upon the occurrence of a Participant Payment
Default, the defaulting Participant shall be deemed to have assigned any and all payments due to
it, whether with respect to principal, interest, fees or otherwise (the &#147;<B><I>Assigned Payments</I></B>&#148;), to
Lead Lender until amounts owed by the Participant to Lead Lender have been repaid in full. Such
Assigned Payments may be held by Lead Lender to reimburse Lead Lender for Reimbursable Expenses and
other amounts owed by the defaulting Participant to Lead Lender. Lead Lender shall apply the
Assigned Payments to reduction and payment of any amount payable by the defaulting Participant to
Lead Lender until all such amounts have been repaid in full. In such event, each Participant
hereby authorizes Lead Lender to distribute the Assigned Payments to Lead Lender as provided
herein, and this assignments and authorization shall be absolute and irrevocable. Notwithstanding
anything contained in this Agreement to the contrary, upon the occurrence of a Participant Payment
Default, repayment to Lead Lender of any amount owing by a defaulting Participant to Lender shall
have priority over all other payments to such Participant until all such amounts have been paid in
full. During the time that a Participant Payment Default exists, the defaulting Participant shall
not be entitled to vote or consent or have any approval rights with respect to any action or matter
required, contemplated or permitted hereunder or under applicable law and, during such period of
time, all determinations shall be made by Lead Lender, or with the consent of Agent, as provided
for herein.


<P align="left" style="font-size: 11pt"><B>7.3. Injunctive Relief. </B>In addition to the above, if any failure of a Participant to comply with
the terms of this Agreement is continuing, Lead Lender may seek injunctive relief, and each
Participant hereby waives its right to assert that Lead Lender has an adequate remedy at law. Each
Participant shall indemnify and hold harmless Lead Lender, its affiliates, each other Participant,
such other Participant&#146;s affiliates and their respective directors, officers and employees, from
and against any and all loss, cost, damage and expense (including reasonable attorneys&#146; fees)
resulting from or in connection with any failure by such Participant to perform its obligations as
provided and contained in this Agreement.


<P align="left" style="font-size: 11pt">8.&nbsp;<U><B>DURATION, BUYOUT.</B></U> Except as otherwise provided in this Agreement, this Agreement shall
remain in full force and effect until the final and indefeasible repayment in full of all
Obligations payable with respect to the Term Loan. No Participant shall be relieved of its
indemnification obligations or its obligation to pay Reimbursable Expenses hereunder until all
Obligations payable with respect to the Term Loan have been finally and indefeasibly paid in full.
The termination of this Agreement shall not affect the respective rights, duties or obligations of
any party incurred prior to the effective date of such termination.


<P align="left" style="font-size: 11pt">9.&nbsp;<U><B>INDEMNIFICATION.</B></U> With respect to any losses, costs, liabilities, damages, penalties,
actions, suits and expenses, including, but not limited to, reasonable attorneys&#146; fees and other
legal expenses (collectively &#147;<B><I>Losses</I></B>&#148;) which may be imposed upon, asserted against, paid or
incurred by Lead Lender and/or any Participant by or to any third party, as applicable, at any time
or from time to time in connection with the Term Loan, including the prosecution or defense of any
suit relating to or arising out of the Loan Documents, Lead Lender and the Participants shall bear
such Losses on a <I>pro rata </I>basis in proportion to their respective interests in the Term Loan, and
each party hereby indemnifies the other and holds the other harmless from and against such
indemnified party&#146;s Losses on a <I>pro rata </I>basis in proportion to their respective interests in the
Term Loan. Notwithstanding anything herein to the contrary neither Lead Lender nor any Participant
shall have any obligation to indemnify or hold the other harmless from and against any Losses (or
portions thereof) incurred by a party that result from the gross negligence or willful misconduct
of such party. All indemnification obligations set forth in this <B>Section&nbsp;9 </B>shall survive the
termination or expiration of this Agreement.


<P align="center" style="font-size: 10pt; display: none">2
<!-- PAGEBREAK -->

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>MISCELLANEOUS.</B></U></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 11pt"><B>10.1. Entire Agreement. </B>This Agreement embodies the entire agreement and understanding between
Lead Lender, Agent and the Participants and supersedes any and all prior agreements and
understandings with respect to the subject matter hereof. This Agreement may not be amended or in
any manner modified unless such amendment or modification is in writing and signed by all parties
hereto.


<P align="left" style="font-size: 11pt"><B>10.2. Confidential Information. </B>Agent and each Participant will maintain any information received
from Lead Lender on a confidential basis and not disclose it to any person who is not an officer,
employee, legal counsel, authorized agent, or other person necessary to the operation of the
business of Agent or such Participant and the provisions of all confidentiality letters and
agreements previously executed by a Participant are hereby incorporated herein by reference with
respect to such Participant (to the extent not inconsistent with this Section) and shall survive
the execution, delivery and termination of this Agreement. Notwithstanding the foregoing, neither
Agent nor any Participant need maintain the confidentiality of, and may disclose, any information
obtained pursuant hereto (i)&nbsp;which has become or hereafter becomes generally available to the
public other than as a result of Agent&#146;s or such Participant&#146;s disclosure; (ii)&nbsp;which becomes
available on a non-confidential basis from a source other than Lead Lender; (iii)&nbsp;to any regulatory
body having jurisdiction over Agent or such Participant or otherwise as required by law; (iv)&nbsp;in
any litigation or other legal proceeding at law, equity or in bankruptcy to which Lead Lender,
Agent or Participant is a party, provided that Agent or such Participant gives Lead Lender not less
than ten (10)&nbsp;Business Days&#146; prior written notice of its intention to disclose such confidential
information in order to allow Lead Lender to seek an appropriate protective order; and (v)&nbsp;the
disclosure of which is consented to in writing in advance by Lead Lender. Agent and each
Participant shall hold Lead Lender harmless from any claims or expenses resulting from a breach of
such party&#146;s obligations pursuant to this <B>Section&nbsp;10.2</B>.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>10.3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Waiver of Jury Trial.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(a)&nbsp;The parties hereto recognize that in matters related to the Term Loan and/or this
Agreement, and as it may be subsequently modified and/or amended, any such party may be
entitled to a trial in which matters of fact are determined by a jury (as opposed to a trial in
which such matters are determined by a federal or state judge). By execution of this
Agreement, each party hereto will give up their respective right to a trial by jury. Each party
hereto hereby expressly acknowledges that this waiver is entered into to avoid delays, minimize
trial expenses, and streamline the legal proceedings in order to accomplish a quick resolution
of claims arising under or in connection with the Term Loan and this Agreement.



<P align="left" style="margin-left:2%; font-size: 11pt; text-indent: 2%">(b) <U>WAIVER OF JURY TRIAL</U>. TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, EACH PARTY
HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT THAT SUCH PARTY MAY
HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION, DIRECTLY OR INDIRECTLY, AT ANY TIME
ARISING OUT OF, UNDER, OR IN CONNECTION WITH THE TERM LOAN, THE COLLATERAL, THIS AGREEMENT, OR
ANY TRANSACTION CONTEMPLATED THEREBY OR HEREBY, BEFORE OR AFTER MATURITY.


<P align="left" style="font-size: 11pt"><B>10.4. Governing Law. </B>IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING
CONFLICT OF LAWS, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. LEAD LENDER, AGENT AND
EACH PARTICIPANT AGREE TO SUBMIT TO PERSONAL JURISDICTION AND TO WAIVE ANY OBJECTION AS TO VENUE IN
THE COUNTY OF WESTCHESTER, STATE OF NEW YORK.


<P align="left" style="font-size: 11pt"><B>10.5. Notices. </B>Whenever it is provided herein that any notice, demand, request, consent, approval,
declaration or other communication shall or may be given to or served upon one party by the other,
or whenever either of the parties desires to give or serve upon the other any communication with
respect to this Agreement, each such notice, demand, request, consent, approval, declaration or
other communications shall be in writing and shall be delivered in person with receipt
acknowledged, or mailed by registered or certified mail, return receipt requested, postage prepaid,
or telecopied and confirmed by telecopy answerback, addressed as indicated below the signature
lines hereto, or at such other address as may be substituted by notice given as herein provided.
The giving of any notice required hereunder maybe waived in writing by the party entitled to
receive such notice. Every notice, demand, request, consent, approval, declaration or other
communication hereunder shall be deemed to have been duly given or served on the date on which
personally delivered, with receipt acknowledged, telecopied and confirmed by telecopy answerback,
or three (3)&nbsp;Banking Days after the same shall have been deposited in the United States mail.


<P align="left" style="font-size: 11pt"><B>10.6. Titles. </B>The Article and Section titles contained in this Agreement are and shall be without
substantive meaning or content of any kind whatsoever and are not a part of the agreement between
the parties hereto.


<P align="left" style="font-size: 11pt"><B>10.7. Assignment. </B>Participant shall not sell, assign or transfer any of its rights under this
Agreement without the prior written consent of Lead Lender, which consent shall not be unreasonably
withheld, conditioned or delayed.


<P align="left" style="font-size: 11pt"><B>10.8. Severability. </B>Wherever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any provisions should become
invalid, illegal or unenforceable in any respect, the remainder of such provision or the remaining
provisions of this Agreement shall not in any way be affected or impaired thereby.


<P align="left" style="font-size: 11pt"><B>10.9. Counterparts. </B>This Agreement may be executed in two (2)&nbsp;or more counterparts, each of which
shall constitute an original, and which collectively shall constitute a single document.


<P align="center" style="font-size: 11pt"><B><I>&#091;REMAINDER OF PAGE INTENTIONALLY LEFT BLANK&#093;</I></B>



<P align="center" style="font-size: 11pt"><B><I>&#091;SIGNATURE PAGES IMMEDIATELY FOLLOW&#093;</I></B>




<P align="center" style="font-size: 10pt; display: none">3
<!-- PAGEBREAK -->




<P align="left" style="font-size: 11pt; text-indent: 4%">IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement by their duly
authorized representatives.

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>LEAD LENDER:</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>KELTIC FINANCIAL PARTNERS II, LP</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">By Keltic Financial Services, LLC, its general partner</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:<BR>
Its:<BR>
Address:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Oleh Szczupak<BR>
Executive Vice President<BR>
580 White Plains Road<BR>
Suite&nbsp;610<BR>
Tarrytown, NY 10591<BR>
Attn: Oleh Szczupak, Chief Credit Officer</DIV></TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD align="left" valign="top"><B>PARTICIPANTS:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 11pt"><B>FROST GAMMA INVESTMENTS TRUST</B>


<P align="left" style="font-size: 11pt">By: /s/ Dr.&nbsp;Phillip Frost
<BR>
Its: Trustee


<P align="left" style="font-size: 11pt"><B>MARIN BLEU INC.</B>


<P align="left" style="font-size: 11pt">By: /s/ Momoko Matsumura<BR>
Its: President<BR>


<P align="left" style="font-size: 11pt">/s/ Mark E. Andrews
<BR>
<B>MARK E. ANDREWS, III</B>


<P align="left" style="font-size: 11pt">/s/ Susan M. Lampen
<BR>
<B>SUSAN M. LAMPEN</B>


<P align="left" style="font-size: 11pt">/s/ Michael S. Liebowitz
<BR>
<B>MICHAEL S. LIEBOWITZ</B>


<P align="left" style="font-size: 11pt">/s/ Chester Franklin Zoeller
<BR>
<B>CHESTER FRANKLIN ZOELLER III</B>



<P align="center" style="font-size: 10pt; display: none">4




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