Document:

EX-4.1

EXHIBIT 4.1

SECURED NON-NEGOTIABLE

PROMISSORY NOTE

$1,084,816.98

New York, NY

September 21, 2009

FOR VALUE RECEIVED, Castle Brands Inc., and its successors and assigns (hereinafter called
the “Maker”), unconditionally promise(s) to pay to Betts & Scholl, LLC (hereinafter the “Holder”),
the principal sum of ONE MILLION, EIGHTY-FOUR THOUSAND, EIGHT HUNDRED SIXTEEN and 98/100 DOLLARS
($1,084,816.98), together with interest on the principal balance hereof from time to time
outstanding, when and as set forth below:

1. Until the Maturity Date (as defined below)(unless the maturity is accelerated prior thereto
pursuant to the terms of this Note), the principal amount outstanding under this Note shall bear
interest at the rate per annum equal to 0.84%, compounded quarterly.

2. Interest shall be charged on the principal balance hereof from time to time outstanding and
shall be calculated on the basis of the actual number of days elapsed over a 365 day year.

3. Except as provided in Section 7.5 of the Asset Purchase Agreement (as defined in the
Security Agreement referred to below), principal and interest shall be payable in lawful money of
the United States, by wire transfer, to the account of the Holder which Holder shall designate in
writing to the Maker from time to time. Until the Maturity Date, or earlier if the maturity is
accelerated prior thereto, principal and interest shall be due and payable in an initial
installment of $250,000 due and payable on the date hereof and eight (8) equal quarterly
installments with each such installment in the combined amount of $106,118.18. If not accelerated
prior thereto in accordance with the terms hereof, seven (7) quarterly installments of principal
and accrued interest shall be due and payable beginning on December 21, 2009 and the eighth
(8th) installment, together with all then accrued and unpaid interest hereon, shall be
due and payable on the Maturity Date. If the date upon which any payment hereunder is due is not a
business day, such payment shall be made on the next succeeding business day. Notwithstanding
anything contained herein to the contrary, the obligation of Maker to make any payments under this
Note shall be subject to the off-set rights set forth in Section 7.5 of the Asset Purchase
Agreement (as defined below) and no such exercise of these rights by Maker shall be deemed an Event
of Default (as defined below).

4. If not accelerated or prepaid prior thereto in accordance with the terms hereof, the full
principal balance of this Note shall be due and payable on September 21, 2011 (the “Maturity
Date”).

5. The Maker waives presentment, demand, protest and notice of protest and all requirements
necessary to hold it liable as Maker. Any failure of the Holder to exercise any right hereunder
shall not be construed as a waiver of the right to exercise the same or any other right at any time
and from time to time thereafter.

6. This Note may be prepaid in full or in part at any time without premium or penalty;
provided, however, that any and all prepayments shall be applied first to any costs
and expenses then due to the Holder, then to accrued and unpaid interest, and then to outstanding
principal payments due, in the order of maturity.

7. As used in this Note, the term “Obligations” shall mean (i) the principal balance of and
accrued interest on this Note; and (ii) all other obligations and liabilities arising under this
Note or under the Security Agreement (referred to hereinbelow).

8. The following shall constitute an event of default (each an “Event of Default”):

(a) Any failure to make payment of principal or interest under this Note when due for more
than five (5) business days after the due date of such amount; or

(b) The Maker or any subsidiary of Maker shall: (i) make an assignment for the benefit of
creditors, file a petition in bankruptcy, petition or apply to any tribunal for the appointment of
a custodian, receiver or any trustee, or a substantial part of any of its properties or assets, or
shall commence any proceeding under any bankruptcy, reorganization, arrangement, readjustment of
debt, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in
effect; or if there shall have been filed any such petition or application, or any such proceeding
shall have been commenced against the Maker in which an order for relief is entered or which
remains undismissed for a period of ninety (90) days or more; or the Maker by any act or omission
shall indicate its consent to, approval of or fail to timely object to any such petition,
application or proceeding or order for relief or the appointment of a custodian, receiver, or any
trustee for the Maker or any substantial part of any of its properties or assets, or shall suffer
any such custodianship, receivership or trusteeship to continue undischarged for a period of ninety
(90) days or more; (ii) generally not pay its debts as such debts become due or admit in writing
its inability to pay its debts as they mature; or (iii) be “insolvent”, as such term is defined in
the Bankruptcy Code, § 11 U.S.C. § 101(31).

Upon the occurrence of an Event of Default which shall be continuing, the Holder may take any
or all of the following actions: (i) declare the Obligations to be due and payable and (ii) take
any and all actions and pursue any and all remedies when and as may be permitted by this Note or
the Security Agreement or by applicable law.

9. EACH OF THE MAKER AND THE HOLDER HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES
ANY RIGHT IT OR THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION (INCLUDING BUT NOT
LIMITED TO ANY CLAIMS, CROSS-CLAIMS, OR THIRD PARTY CLAIMS) ARISING OUT OF, UNDER, OR IN CONNECTION
WITH THIS NOTE, OR THE TRANSACTIONS CONTEMPLATED HEREIN.

The Maker hereby specifically authorizes any action brought upon the enforcement of this Note
by the Holder to be instituted and prosecuted in the State or Federal courts located in Miami-Dade
County, Florida. The Maker hereby consents and submits to the personal jurisdiction of the State
and Federal courts located in Miami-Dade County, Florida in any action instituted by the Holder
arising under or related to this Note.

10. This is the “Note” referred to in (i) that certain Security Agreement dated the date of
this Note, by and among the Maker and the Holder (the “Security Agreement”) and (ii) the Asset
Purchase Agreement as defined in the Security Agreement. This Note is secured by the Collateral
referred to in the Security Agreement, reference to which is hereby made for a description of the
Collateral and the rights of the Holder in respect of such Collateral.

11. This Note is to be construed and enforced according to the internal laws of the State of
Florida, without giving effect to principles of conflict of laws.

12. Each provision of this Note is intended to be severable and the invalidity or illegality
of any portion of this Note shall not affect the validity or legality of the remainder hereof.

13. This Note is not assignable or otherwise transferable by the Maker nor are its obligations
hereunder assumable without the prior consent of the Holder, unless the Maker agrees to remain
liable for all the Obligations. This Note is non-negotiable and may not be assigned or otherwise
transferred by the Holder without the prior consent of the Maker.

MAKER:

Castle Brands Inc.

	 	 	 
	By:

Name:

	 	/s/ Alfred J. Small

Alfred J. Small
	
 
	 	 
	Title:

	 	Senior Vice President, Chief Financial Officer, Treasurer and SecretaryEX-4.2

EXHIBIT 4.2

SECURITY AGREEMENT

THIS SECURITY AGREEMENT (this “Agreement”) is made and entered into as of the 21st day
of September, 2009 by and between Castle Brands Inc., a Delaware corporation (the “Maker”),
and Betts & Scholl, LLC, a Florida limited liability company (the “Holder”).

W I T N E S S E T H:

WHEREAS, the Maker and the Holder are parties to that certain Asset Purchase Agreement, dated
September 21, 2009 (the “Asset Purchase Agreement”), pursuant to which the Maker’s
subsidiary, Castle Brands (USA) Corp., will concurrently herewith purchase from the Holder certain
assets; and

WHEREAS, also concurrently herewith, the Maker will become indebted to the Holder in the
amount of $1,084,816.98 (the “Indebtedness”), which Indebtedness is represented by that
certain Secured Non-Negotiable Promissory Note, dated of even date herewith (the “Note”);
and

WHEREAS, the Maker has agreed to grant to the Holder a security interest in certain assets of
the Maker to secure the Indebtedness.

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Maker and the
Holder hereby agree as follows:

1. Creation of Security Interest in Collateral. The Maker hereby grants a continuing
security interest to the Holder in and to the Inventory (as defined in the Asset Purchase
Agreement), which is referred to herein collectively as the “Collateral” from the date
hereof through the Termination Date. The Collateral is pledged, assigned and transferred, and a
first priority lien security interest therein is granted to the Holder as security for the payment
and performance by the Maker as and when due and payable (by scheduled maturity, acceleration or
otherwise) of all amounts owing by Maker pursuant the Note.

2. Financing Statements. The Maker will join with the Holder in the execution and
filing of appropriate financing statements or other documents under the Uniform Commercial Code of
the State of California (the “UCC”) and/or the laws of the Commonwealth of Australia, and
at all times the Maker will do, execute, acknowledge and deliver, and will cause to be done,
executed, acknowledged and delivered, itself and by any corporation or person obligated to the
Maker so to do, all and every such further acts, deeds, and assurances as the Holder shall
reasonably require for the better assuring, perfecting and confirming unto the Holder, the security
interest in the Collateral.

3. Use of Collateral. In the absence of an Event of Default (as hereinafter defined),
the Maker shall have all rights to retain possession of and use the Collateral and the proceeds
thereof and to sell or otherwise dispose of the Inventory in the ordinary course of business.

4. Maintenance of Books and Records. During the term of this Agreement, the Maker
shall maintain its books, accounts and records related to the Collateral in accordance with GAAP
and permit the Holder, its officers and its designated professionals, at any time during normal
business hours and upon reasonable notice to visit and inspect the Collateral, books, accounts and
records and to discuss its accounts, books and records with the Holder, it being agreed that unless
an Event of Default shall have occurred and be continuing, there shall be no more than two (2) such
visits in any twelve month period. Maker shall not remove its books and records from its current
principal executive offices, 122 East 42nd Street, Suite 4700, New York, New York 10168, without
prior notification to the Holder; provided, however, that the filing by the Maker
of any publicly-available report with the United States Securities and Exchange Commission
designating new principal executive offices of the Maker shall constitute notice for purposes of
this Section 4.

5. Holder Appointed Attorney-in-Fact. Upon the occurrence and during the continuance
of an Event of Default, with notice to the Maker, the Maker hereby irrevocably constitutes and
appoints the Holder as the Maker’s true and lawful attorney-in-fact, with full power of
substitution, to execute, acknowledge and deliver any instruments and to exercise and enforce every
right, power, remedy, option and privilege of the Maker with respect to the Collateral, including
the right to demand, collect, receive, settle, compromise, sue for, foreclose or realize the
Collateral as and when the Holder may determine, and do in the name, place and stead of the Maker,
all such acts, things and deeds for and on behalf of and in the name of the Maker which the Maker
could or might do or which the Holder may deem necessary or desirable to more fully vest in the
Holder the rights and remedies provided for herein and to accomplish the purposes of this
Agreement, including the right to notify account debtors and obligors on any of the Collateral to
make payments directly to Holder. The foregoing power of attorney is irrevocable and coupled with
an interest.

6. Reasonable Care. The Holder shall be deemed to have exercised reasonable care in
the custody and retention of the Collateral in its possession if the Collateral is accorded
treatment substantially equal to that which the Holder accorded the Collateral immediately prior to
the date hereof, including maintaining, at Maker’s cost and expense, insurance in reasonable form,
substance and amounts.

7. Representations and Warranties, Covenants and Agreements.

(a) The Maker represents and warrants that:

(i) The Maker has not made or filed any other lien, encumbrance, security agreement or
financing statement, other than those herein created, covering the Collateral or any part thereof
in which the Maker purports to grant a security interest hereunder, and the Maker has not created,
attached or perfected any security interest, other than the one herein created, in the Collateral
or any part thereof.

(ii) The Maker is the sole legal, registered, record and beneficial owner of the Collateral in
which the Maker purports to grant a security interest hereunder, having good title thereto free and
clear of any and all liens and encumbrances, subject to the Holder’s proper conveyance of the
Collateral to the Maker; and

(iii) The Maker has the full power, right and authority to enter into this Agreement, to grant
the security interest granted herein to the Holder and to carry out the transactions contemplated
by this Agreement.

(b) The Maker shall:

(i) promptly furnish the Holder with any information or documents which the Holder may
reasonably request concerning the Collateral;

(ii) promptly notify the Holder of any material claim, action or proceeding affecting title,
or any other matter relating to the Collateral, or any part thereof, or the security interest
created herein, and at the Holder’s request, appear in and defend, at the Maker’s expense, any such
claim, action or proceeding, provided that such claim, action or proceeding is not caused by or the
fault of the Holder or in existence prior to date hereof;

(iii) promptly make such further assurances and take such further actions as may be reasonably
necessary to establish proof of the Maker’s title to the Collateral and/or to protect the Holder’s
interest in the Collateral, provided that such actions or assurances are not necessitated or caused
by or the fault of the Holder or in existence prior to date hereof; and

(iv) not, without the Holder’s prior written consent, (A) create any other security interest
in, assign, pledge or otherwise encumber the Collateral or any part thereof, or (B) permit any part
of the Collateral to be or become subject to any lien, attachment, execution, sequestration, other
legal or equitable process, or encumbrance of any kind or character other than the security
interests created by this Agreement and the rights of the Maker pursuant to Section 3 hereof.

8. Event of Default. The following shall constitute an “Event of Default”
hereunder:

(a) If an “Event of Default” occurs under the terms of the Note and the Maker shall have
failed to cure such Event of Default within any applicable cure period; or

(b) If the Maker shall fail to perform any material covenant or agreement set forth herein and
the Maker shall not have cured such failure within ten days after receipt of written notice thereof
from the Holder.

9. Remedies. If any Event of Default shall have occurred and be continuing:

(a) In addition to all other rights and remedies granted to it under this Agreement, the Note
or other applicable law, if any Event of Default shall have occurred and be continuing, the Holder
may exercise all rights and remedies of a secured party under the UCC.

(b) Any surplus of such cash or cash proceeds held by the Holder and remaining after payment
in full of the Indebtedness shall be paid over to the Maker.

10. Termination. This Agreement shall terminate automatically upon the complete and
final satisfaction in full of all Indebtedness under the Note (the “Termination Date”).

11. Expenses. The Maker will pay to the Holder the amount of any reasonable expenses,
including the reasonable fees and expenses of its counsel, which the Holder may incur in connection
with the exercise or enforcement of any of the rights of the Holder hereunder upon an Event of
Default.

12. Amendments, Etc. No amendment or waiver of any provision of this Agreement nor
consent to any departure by the Maker herefrom shall in any event be effective unless the same
shall be in writing and signed by the Holder and then such waiver or consent shall be effective
only in the specific instances and for the specific purpose for which given.

13. No Waiver; Cumulative Remedies. No failure on the part of the Holder to exercise,
and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right, power or remedy by the Holder preclude
any other or further exercise thereof or the exercise of any other right, power or remedy. All
remedies hereunder are cumulative and are not exclusive of any other remedies provided by law.

14. Severability. If any provision of this Agreement or the application thereof to
any party hereto or circumstances shall be invalid or unenforceable to any extent, the remainder of
this Agreement and the application of such provisions to any other party thereto or circumstances
shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

15. Notices. All notices, requests, demands and other communications required or
permitted to be given hereunder shall be made in accordance with the terms of Section 8.3 of the
Asset Purchase Agreement.

16. Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered will be an original, but all such
counterparts will together constitute one and the same instrument. Each counterpart may consist of
a number of copies, facsimiles or facsimiles of copies hereof each signed by less than all, but
together signed by all of the parties hereto.

17. Governing Law and Jurisdiction. This Agreement shall be governed by and construed
in accordance with the internal laws of the State of Florida, without giving effect to principles
of conflict of laws, and shall inure to the benefit of and be binding upon the successors and
assigns of the parties hereto. Each of the Maker and the Holder hereby specifically authorize any
action brought upon the enforcement of this Agreement by the other to be instituted and prosecuted
in the State or Federal courts located in Miami-Dade County, Florida. Each of the Maker and the
Holder hereby specifically consents and submits to the personal jurisdiction of the State and
Federal courts located in Miami-Dade County, Florida in any action instituted by the other arising
under or related to this Agreement.

EACH OF THE MAKER AND THE HOLDER HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY
RIGHT IT OR THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION (INCLUDING BUT NOT
LIMITED TO ANY CLAIMS, CROSS CLAIMS, OR THIRD PARTY CLAIMS) ARISING OUT OF, UNDER, OR IN CONNECTION
WITH THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREIN.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first written above.

MAKER

CASTLE BRANDS INC.

By: /s/ Alfred J. Small

Name: Alfred J. Small

Title: Senior Vice President and CFO

HOLDER

BETTS & SCHOLL, LLC

By: /s/ Dennis Scholl

Name: Dennis Scholl

Title: Member

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