Document:

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                                                                   Exhibit 10.16

                                                                  EXECUTION COPY

NEITHER THIS NOTE NOR THE EQUITY SECURITIES FOR WHICH THIS NOTE IS CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR
QUALIFIED UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTION. NONE OF SUCH
SECURITIES MAY BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

                           CONVERTIBLE PROMISSORY NOTE

$5,000,000                                                 Date: August 16, 2005

FOR VALUE RECEIVED, the undersigned Castle Brands Inc., a Delaware corporation
(the "COMPANY"), promises to pay to the order of Black River Global Credit Fund
Ltd. ("HOLDER") the principal amount of Five Million US DOLLARS (US $5,000,000)
(the "PRINCIPAL AMOUNT"), together, with interest on the unpaid balance of the
Principal Amount, on the Maturity Date, and subject to the following provisions.

The following is a statement of the rights of Holder and the conditions to which
this Note is subject, and to which Holder, by the acceptance of this Note,
agrees:

      1.    DEFINITIONS.

      The capitalized terms in this Note shall have the meanings ascribed to
such terms in the Convertible Note Purchase Agreement unless otherwise defined
herein:

      "40% CONVERSION" has the meaning set forth in Section 7.2(i) below;

      "ADDITIONAL STOCK" means any Equity Securities of the Company issued by
the Company after the applicable Closing Date but prior to the second
anniversary of the applicable Closing Date other than (i) the Notes (as defined
in the Convertible Note Purchase Agreement) and the Conversion Shares; (ii)
Common Stock issued or issuable as a dividend or distribution on or upon
conversion of the Preferred Stock of the Company; (iii) Common Stock issued or
issuable by reason of a dividend, stock split, split-up or other distribution on
Common Stock, (iv) any Common Stock issued or issuable (including pursuant to
options or warrants) to financial institutions in connection with commercial
credit arrangements approved by the Board of Directors of the Company, (v) any
Common Stock issued or issuable to employees, officers, or directors of the
Company or their respective immediate family members pursuant to currently
outstanding or newly created options or warrants that are approved by the Board
of Directors of the Company or a committee thereof, (vi) Common Stock issued
upon conversion of the Company's 5% Convertible Subordinated Notes due on or
about the third anniversary of the Series C Closing Date as defined in the
Restated Charter in the aggregate principal amount of E1,374,750, (vii) shares
or interests

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issued or issuable pursuant to any rights or agreements, options, warrants or
convertible securities outstanding as of the date of this Note or the issuance
of any of the warrants listed on Section 5.3(a) of the Schedule of Exceptions to
the Convertible Note Purchase Agreement or the issuance of any shares of Common
Stock upon exercise thereof, (viii) any Equity Securities issued for
consideration other than cash pursuant to a merger, consolidation, strategic
alliance, acquisition or similar business combination approved by the Board of
Directors of the Company, (ix) any Equity Securities issued in connection with
any recapitalization or similar event by the Company, (x) any Equity Securities
that are issued by the Company pursuant to an IPO, and (xi) any Equity
Securities issued in connection with strategic transactions involving the
Company and other entities, including joint ventures, manufacturing, marketing
or distribution arrangements provided that the issuance of shares therein has
been approved by the Board of Directors of the Company;

      "CERTIFICATE OF DESIGNATIONS" has the meaning set forth in Section 7.2
below;

      "CONVERSION NOTICE" has the meaning set forth in Section 7.3 below;

      "CONVERSION PRICE" means a price equal to, in the case of conversion of
this Note into Conversion Shares, $8.00 per share; provided, however, that (i)
in the event that the Company issues or is deemed to issue Additional Stock at a
per share purchase price of less than the then in effect Conversion Price, the
Conversion Price shall be subject to the following adjustment upon the issuance
of any Additional Stock: the new Conversion Price shall be determined by
multiplying the Conversion Price then in effect by a fraction, (x) the numerator
of which shall be the number of shares of Common Stock deemed outstanding
immediately prior to such issuance ("OUTSTANDING COMMON") plus the number of
shares of Common Stock that the aggregate consideration received by the Company
for such issuance would purchase at the Conversion Price then in effect; and (y)
the denominator of which shall be the number of shares of Outstanding Common
plus the number of shares of such Additional Stock, and (ii) the Conversion
Price shall be proportionately adjusted in the case of any stock dividend, stock
split, split-up or other distribution on Common Stock; for purposes of clarity,
"Outstanding Common" shall include all outstanding shares of Common Stock and
all shares of Common Stock issuable upon conversion of outstanding shares of
Preferred Stock or other convertible instruments of the Company or issuable upon
exercise of options, warrants or other rights to acquire Common Stock;

      "CONVERSION SHARES" means Common Stock to which Holder shall be entitled
under the terms of this Note;

      "CONVERTIBLE NOTE PURCHASE AGREEMENT" means that certain Amended and
Restated Convertible Note Purchase Agreement dated as of August 16, 2005, by and
among the Company and the Purchasers, and/or their affiliates and assigns, set
forth on Exhibit A thereto;

      "DEFAULT RATE" shall have the meaning set forth in Section 6.1 below;

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      "DISCOUNTED CONVERSION PRICE" has the meaning set forth in Section 7.2(i)
below;

      "EQUITY SECURITIES" means (i) any share or interest in the Company, (ii)
any security convertible into or exercisable or exchangeable for, with or
without consideration, any share or interest (including any option to purchase
such convertible security) in the Company, (iii) any security carrying any
warrant or right to subscribe to purchase any share, interest or other security
in the Company or (iv) any such warrant or right;

      "FINAL CONVERSION" has the meaning set forth in Section 7.2 below;

      "HOLDER" has the meaning set forth in the introductory paragraph to this
Note;

      "INTEREST RATE" means the rate of 6% calculated on the basis of a 360 day
year based on the number of days elapsed including the first day, but excluding
the day on which such calculation is being made; provided that in the absence of
an Event of Default and in the event the Company does not complete an IPO by
September 30, 2006, the Interest Rate applicable to this Note will increase by
100 basis points as of September 30, 2006; provided further that upon the
occurrence of an Event of Default, the Interest Rate will increase to the
Default Rate;

      "INTEREST NOTE RATE" means the rate of 7.5% calculated on the basis of a
360 day year based on the number of days actually elapsed including the first
day but excluding the day on which such calculation is being made; provided that
in the absence of an Event of Default and in the event the Company does not
complete an IPO by September 30, 2006, the Interest Note Rate will increase by
100 basis points as of September 30, 2006; provided further that upon the
occurrence of an Event of Default, the Interest Note Rate will increase to the
Default Rate;

      "MATURITY DATE" means March 1, 2010 or such earlier date as this Note
shall become due and payable in accordance with Section 2.4 or Section 6 below;

      "NOTE" means this Convertible Promissory Note due March 1, 2010;

      "PRINCIPAL AMOUNT" has the meaning set forth in the introductory paragraph
to this Note; and

      "SERIES C PREFERRED CONVERSION" has the meaning set forth in Section 7.2
below.

      2.    TIME OF PAYMENT.

            2.1   PAYMENT AT MATURITY DATE.

            The Principal Amount together with all accrued but unpaid interest
shall be due and payable on the Maturity Date, in accordance with the terms of
this Note. If the payment of the Principal Amount and interest on this Note
becomes due on a day

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which is not a Business Day, such payment shall be made on the next succeeding
Business Day, and any such extension of time shall be included in computing
interest in connection with such payment.

            2.2   INTEREST PAYMENT.

            Interest shall accrue on the Principal Amount at the Interest Rate.
Interest accrued but unpaid on the Principal Amount as of the end of each
quarter of each calendar year that this Note remains outstanding shall be
payable within 30 days after the end of each calendar quarter in accordance with
the terms of this Note; provided that for the period beginning on the date of
this Note and terminating two years from the date of this Note, at the Company's
election, the Company may pay interest on this Note by issuing Interest Notes on
the same terms as the Initial Note except that interest payable on any Interest
Note (i) shall accrue at the Interest Note Rate and (ii) may not be paid in
kind.

            2.3   NO PREPAYMENT.

            Except as set forth in this Note, the Company may not prepay the
Principal Amount and/or the accrued but unpaid interest or any part thereof
without the prior written consent of the Super Majority Interest.

            2.4   MATURITY DATE ACCELERATION.

            In the event that any of the holders of Series A Preferred, Series B
Preferred or Series C Preferred have the right to require the Company to redeem
any of their shares of preferred stock, at least forty-five (45) days before the
date the Company is required to redeem such stock, the Company shall provide
written notice to each Holder describing the number of shares of stock the
Company is required to redeem, the redemption price, the date of redemption (the
"REDEMPTION DATE") and any other material terms and conditions relating to such
redemption. Within fifteen (15) days after receipt of such written notice,
holders of at least a majority in interest of the principal amount outstanding
on the Notes may notify the Company in writing of their election to accelerate
the Maturity Date to the date ten (10) Business Days prior to the Redemption
Date. Upon the written election to accelerate the Maturity Date in accordance
with the preceding sentence, the Company agrees that it shall pay the then
outstanding Principal Amount, all accrued but unpaid interest and other amounts
due under this Note prior to the payment of any amount to redeem the Company's
preferred stock.

      3.    APPLICATION OF PAYMENTS.

      All payments of the indebtedness evidenced by this Note shall be applied
first to any accrued but unpaid interest on this Note then due and payable
hereunder, and then to the Principal Amount of this Note then outstanding.

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      4.    CURRENCY.

      All payments of Principal Amount or of interest on this Note shall be made
in US dollars at the address of Holder indicated on the signature page hereof,
or such other place as Holder shall designate in writing to Company.

      5.    EVENTS OF DEFAULT.

      The occurrence of any of the following shall constitute an Event of
Default under this Note: (a) The Company's failure to pay the outstanding
Principal Amount and accrued interest on this Note on the Maturity Date; (b) the
Company's failure to pay any fees related to this Note when due and any such
failure to pay shall remain unremedied for five (5) Business Days or (c) an
Event of Default under, and as defined in, the Convertible Note Purchase
Agreement.

      6.    REMEDIES.

            6.1   REMEDY UPON AN EVENT OF DEFAULT.

            Upon the occurrence of an Event of Default, (i) this Note shall
become due and payable upon the demand of the Super Majority Interest, and upon
such demand shall thereafter become automatically due and payable, without
presentment, demand, protest, or further notice of any kind, all of which are
hereby expressly waived by the Company, and (ii) the Interest Rate shall
increase by 400 basis points above the then applicable Interest Rate (the
"DEFAULT RATE").

      7.    CONVERSION.

      Subject to the provisions hereof, this Note, unless otherwise provided
hereinafter, will be converted into shares of Conversion Shares at any time, and
from time to time, in whole, as follows:

            7.1   VOLUNTARY CONVERSION.

            Any Note may be converted into Conversion Shares, at any time or
from time to time, at the option of the holder of such Note. The number of
shares of Conversion Shares into which such Note may be converted shall be
determined by dividing the principal amount of such Note then outstanding by the
Conversion Price, as adjusted and then in effect.

            7.2   AUTOMATIC CONVERSION.

            (i) Forty percent (40%) of the principal under the Notes shall be
converted automatically into Conversion Shares at a 12.5% discount to the then
applicable Conversion Price (the "DISCOUNTED CONVERSION PRICE") upon the
completion of a Qualified IPO (the "40% CONVERSION"); and

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            (ii) The remaining principal under the Notes shall be converted
automatically into Conversion Shares at the then applicable Conversion Price
(the "FINAL CONVERSION") on the first date that is both (A) after the third
anniversary of the date of the Initial Closing and (B) the 30th consecutive
trading day on a nationally recognized securities exchange or dealer quotation
system from and after the consummation of an IPO by the Company on which the
closing price of the Company's Common Stock is no less than $20.00 per share
(subject to proportionate adjustments for dividends, stock splits, split-ups or
other distributions on Common Stock).

            Notwithstanding anything to the contrary in this Note, if (i) the
40% Conversion constitutes an issuance of "Additional Common Stock" under the
Company's Certificate of Designations of the Series A Convertible Preferred
Stock, Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock , as amended from time to time, (the "CERTIFICATE OF DESIGNATIONS")
requiring an adjustment to the Conversion Price (as defined in the Certificate
of Designations) applicable to the Company's Series C Preferred Stock, and (ii)
such adjustment to the Series C Preferred Stock Conversion Price has not been
waived by the requisite majority of holders of Series C Preferred Stock, then,
upon conversion of Series C Preferred Stock into Common Stock (the "SERIES C
PREFERRED CONVERSION"), the Conversion Price applicable to the outstanding
principal under this Note that was not subject to the 40% Conversion shall be
adjusted pursuant to the formula set forth in the definition of Conversion Price
in this Note as if the Common Stock being issued upon the 40% Conversion were
issued immediately prior to the Series C Preferred Conversion as shares of
Additional Stock at the Discounted Conversion Price.

            Upon the Final Conversion, this Note, without any further action of
the parties, shall cease to be a payment obligation and shall represent only the
right to represent the Conversion Shares.

            7.3   CONVERSION; SURRENDER OF NOTE.

            Any voluntary conversion of this Note shall be by presentation and
surrender of this Note to the Company at the principal office of the Company,
accompanied by a written notice of conversion (the "CONVERSION NOTICE"). The
Conversion Notice shall become effective when received by the Company.

            7.4   CONVERSION CLOSING.

            Upon presentation and surrender of this Note and the Conversion
Notice, the Company shall promptly conduct a Closing to effect the issuance of
the Conversion Shares to Holder. At such Closing, the Company shall deliver to
Holder validly executed share certificates representing such Conversion Shares.

            7.5   DEEMED STOCKHOLDER.

            Holder shall not, by virtue hereof, be entitled to any rights of a
stockholder in the Company, but will have the rights of a debt holder set forth
in the

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Convertible Note Purchase Agreement and/or this Note. Upon receipt by the
Company of the Conversion Notice, Holder shall be deemed to be holder of the
shares issuable upon such conversion notwithstanding that the share transfer
books of the Company shall then be closed and that certificates representing
such shares shall not then be actually delivered to Holder. The Company shall
pay all taxes and other charges that may be payable in connection with the
issuance of the shares and the preparation and delivery of stock certificates
pursuant to this Section 7 in the name of Holder, but shall not pay any taxes
payable by Holder by virtue of the holding, issuance, exercise or sale of this
Note or the shares by Holder.

            7.6   NO FRACTIONAL SHARES.

            No fractional Conversion Shares shall be issued in connection with
the conversion of this Note, and the number of shares issued shall be rounded to
the nearest whole number (with one-half being rounded downward) and the amount
of principal constituting such fraction shall be paid in cash.

      8.    WAIVER.

      The Company waives presentment for payment, notice of nonpayment, protest,
demand, notice of protest, notice of intent to accelerate, notice of
acceleration and dishonor, diligence in enforcement and indulgences of every
kind.

      9.    NO WAIVER.

      The acceptance by Holder of any payment under this Note which is less than
the payment in full of all amounts due and payable at the time of such payment
shall not (i) constitute a waiver of or impair, reduce, release or extinguish
any right, remedy or recourse of Holder, or nullify any prior exercise of any
such right, remedy or recourse, or (ii) impair, reduce, release or extinguish
the obligations of any party as originally provided herein.

      10.   SENIOR SUBORDINATED NOTE.

      This Note and the principal and interest payable hereunder shall be wholly
subordinate in right of payment to all obligations of the Company under the
senior secured notes issued pursuant to that certain Trust Indenture Agreement
dated as of June 1, 2004, between the Company and JPMorgan Chase Bank, and
joined by MHW, Ltd., as collateral agent, and other senior debt subsequently
incurred, subject to the limitations on Company indebtedness set forth in
Section 10.5 of the Convertible Note Purchase Agreement.

      11.   CUMULATIVE REMEDIES.

      The rights, remedies and recourses of Holder, as provided in this Note,
shall be cumulative and concurrent and may be pursued separately, successively
or together as often as occasion therefore shall arise, at the sole discretion
of Holder.

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      12.   GOVERNING LAW.

      This Note shall be governed by, and interpreted in accordance with, the
laws of the State of New York, without giving effect to the rules respecting
conflicts of law.

      13.   SEVERABILITY.

      If any provision hereof or the application thereof to any Person or
circumstance shall, for any reason and to any extent, be invalid or
unenforceable, neither the application of such provision to any other Person or
circumstance nor the remainder of the instrument in which such provision is
contained shall be affected thereby and shall be enforced to the greatest extent
permitted by law.

      14.   INTERPRETATION.

      The headings in this Note are included only for convenience and shall not
affect the meaning or interpretation of this Note. The words "herein" and
"hereof" and other words of similar import refer to this Note as a whole and not
to any particular part of this Note.

      15.   NOTICES.

      All notices, demands, and other communications hereunder shall be in
writing and shall be deemed given if delivered personally or by commercial
delivery service, or mailed by registered or certified mail (return receipt
requested) or sent via facsimile (with acknowledgment of complete transmission),
to Holder at its address set forth below, or to the Company at its principal
executive office (or at such other address for a party as shall be specified by
like notice).

      16.   EXCHANGE OR LOSS OF NOTE.

      Upon receipt by the Company of evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Note, and (in the case of
loss, theft or destruction) of reasonably satisfactory indemnification, and upon
surrender and cancellation of this Note, if mutilated, the Company will execute
and deliver a new Note of like tenor and date.

      17.   SPECIFIC PERFORMANCE.

      Without limiting the foregoing or any remedies available to the parties,
the parties will be entitled to specific performance of the obligations
hereunder and injunctive relief against actual or threatened violations of the
obligations of any person subject to this Note.

      18.   TRANSFER AND ASSIGNMENT.

      This Note and the rights conferred hereby shall be transferable by Holder
to eligible financial institutions, subject, in whole or in part, to the
limitations set forth in

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the Convertible Note Purchase Agreement with the written consent of the Company,
which consent shall not be unreasonably withheld or delayed. If this Note should
be transferred in part only, the Company shall, upon surrender of this Note for
cancellation, execute and deliver new Notes evidencing, separately, the rights
and obligations of Holder and the rights and obligations of the transferee to
payment and conversion of their respective portions of the principal and
interest hereunder into Conversion Shares.

      19.   ENFORCEABILITY.

      This Note shall be binding upon and inure to the benefit of both parties
hereto and their respective successors and assigns. If any provision of this
Note shall be held to be invalid or unenforceable, in whole or in part, neither
the validity nor the enforceability of the remainder hereof shall in any way be
affected.

      20.   AMENDMENTS AND WAIVERS.

      Any term of this Note may be amended or waived only with the written
consent of the Company and the holders of a majority in interest of the
principal amount of the Notes outstanding under the Convertible Note Purchase
Agreement; provided however that if the amendment or waiver will materially
adversely affect any holder(s) of the Notes, then such amendment or waiver will
require the consent of the Company and the Super Majority Interest. Any
amendment or waiver effected in accordance with this Section 20 shall be binding
upon each Holder and each transferee of this Note, the Conversion Shares, each
future holder of all such Conversion Shares, and the Company.

      21.   LIMITATION ON INTEREST.

      Nothing contained in this Note shall be deemed to require the payment of
interest or other charges by the Company or any other Person in excess of the
amount which Holder may lawfully charge under the applicable usury laws. In the
event that Holder shall collect moneys which are deemed to constitute interest
which would increase the effective Interest Rate to a rate in excess of that
permitted to be charged by applicable law, all such sums deemed to constitute
interest in excess of the legal rate shall be credited against the Principal
Amount then outstanding and the excess shall be returned to the Company.

                  [Remainder of Page Intentionally Left Blank]

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            IN WITNESS WHEREOF, the undersigned has executed this Convertible
Promissory Note as of the date first written above.

CASTLE BRANDS INC.                    ACKNOWLEDGED AND AGREED TO BY:

                                      BLACK RIVER GLOBAL
                                      CREDIT FUND LTD.

By:   /s/ Mark Andrews                By:  /s/ Paula M. Weis
      ------------------------             ------------------------
      Mark Andrews, Chairman &             Paula M. Weis
      CEO                                  Authorized Signer

Castle Brands Inc.
29th Floor
570 Lexington Avenue
New York, NY  10022

                                       10<PAGE>
                                                                   Exhibit 10.17

                                DATED DEC 01 2003

                                     BETWEEN

                       THE ROARING WATER BAY (RESEARCH AND
                          DEVELOPMENT) COMPANY LIMITED

                                       AND

                                   GSRWB, INC.

                                   ----------

                                LICENCE AGREEMENT

                                   ----------

                            MATHESON ORMSBY PRENTICE
                                30 Herbert Street
                                    Dublin 2
                                     Ireland

                              TEL + 353 1 619 9000
                              FAX + 353 1 619 9010
                              \MOP_DUBLIN\869259.4
<PAGE>
THIS LICENCE AGREEMENT BETWEEN THE ROARING WATER BAY (RESEARCH AND DEVELOPMENT)
COMPANY LIMITED, an Irish company of Roaring Water Bay House, 4 Herbert Place,
Dublin 2, Ireland (hereinafter called "RWBRDCL") of the One Part; and

GSRWB, Inc., a Delaware corporation whose principal place of business is 85 - 47
Eliot Avenue, Suite G, Rego Park, New York, 11374 (hereinafter called "GSRW") of
the Other Part.

WHEREAS RWBRDCL is in possession of an invention for which certain Patents (as
defined below) have been obtained.

WHEREAS RWBRDCL has agreed to grant GSRW an exclusive license to use the said
invention for which the said Patents have been obtained.

IT IS HEREBY AGREED AS FOLLOWS:-

1    DEFINITIONS

In this Licence Agreement the following words and expressions shall have the
following meanings:-

<TABLE>
<S>                          <C>
"APPLICATION(S)"             means any Application for Letters Patent filed in
                             respect of the Invention, including any renewals,
                             extensions or improvement. "Applications" shall be
                             construed accordingly.

"ARBITRATOR"                 has the meaning set out in Clause 21 hereof.

"CALL OPTION"                means the option granted by RWBRDCL to GSRW in clause 3 hereof.

"CALL OPTION PERIOD"         means the duration of this Licence Agreement

"CONFIDENTIAL INFORMATION"   has the meaning set out in Clause 8 hereof.

"INVENTION(S)"               means the claimed subject matter of any of the
                             Patents listed in Schedule One, including without
                             limit all improvements thereon. "Inventions" shall
                             be construed accordingly.

"NET INVOICE PRICE"          means the sales price at the time of the subject
                             sale of the Product, excluding all taxes.

"NOTICE"                     has the meaning set out in Clause 3.2 hereof.
</TABLE>
<PAGE>
<TABLE>
<S>                          <C>
"OPERATIVE DATE"             means the 1st day of December 2003.

"PARTIES"                    means the parties to this Licence Agreement.

"PATENT(S)"                  Patents shall be construed accordingly.
                             "Patents" means the Patents referred to in Schedule
                             One.

"PRODUCT(S)"                 means goods manufactured incorporating and/or using
                             the Invention. "Products" shall be construed
                             accordingly.

"TERRITORY"                  means the territory as defined in Schedule Two
                             hereto.

"YEAR OF THIS LICENCE        means the period of twelve (12) months first
AGREEMENT"                   commencing on the Operative Date or any anniversary
                             of the Operative Date.
</TABLE>

2    GRANT OF LICENCE

2.1  RWBRDCL agrees subject to the terms and conditions of this Licence
     Agreement to grant to GSRW an exclusive licence to manufacture and sell, as
     well as the right to sub-licence pursuant to Section 4 hereof, the
     Invention in the Territory under each and every Patent as may be granted
     for the term of this Licence Agreement.

     BY THIS LICENCE The Roaring Water Bay (Research and Development) Company
     Limited, an Irish company of Roaring Water Bay House, 4 Herbert Place,
     Dublin 2, Ireland HEREBY GRANTS to GSRWB, Inc., a Delaware corporation
     having a principal place of business at 85 - 47 Eliot Avenue, Suite G, Rego
     Park, New York 11374 of the following Letters Patent of which it is the
     proprietor that is to say, Nos. IE990967, 990969 and GB2344095 (hereinafter
     called the "Patent") full and exclusive Licence and authority to make use
     of the Invention claimed in the specification of the Patent to the intent
     that such Licence shall endure from the date hereof SUCH LICENCE being
     SUBJECT TO and with the benefit of this Licence Agreement.

3    CALL OPTION

3.1  Grant of Call Option and all rights, title and interest in the Invention

     In consideration of the payment by GSRW of EUR 1 (receipt of which RWBRDCL
     hereby acknowledges) RWBRDCL hereby grants to GSRW an option to require
     RWBRDCL to sell during, the Call Option Period, to GSRW all of the
     outstanding Applications and Patent(s) and the right, title and interest
     thereon for the aggregate sum of EUR90,000.

3.2  Exercise of Call Option

     The Call Option may be exercised at any time during the Call Option Period
     by notice in writing (the "Notice") served by GSRW on RWBRDCL. RWBRDCL
     shall sell or

                                        2
<PAGE>
     procure the sale of the Applications and Patent(s) and all rights, title
     and interest in the Invention to GSRW within a period of 30 days from the
     receipt of the Notice by GSRW.

4    SUB-CONTRACTING

     Nothing in this Licence Agreement shall restrict the right of GSRW to enter
     into any sub contract which permits any sub-contractor to manufacture and
     sell the Invention provided that if any Confidential Information as defined
     in Clause 8 hereof is disclosed GSRW shall take all reasonable steps to
     safeguard the confidential nature of such Confidential Information.

5    ROYALTY

     In the period from the _____________ day of __________ to the date of
     termination of this Licence Agreement, The Roaring Water Bay Spirits
     Company Limited ("RWBSCL"), as GSRW's subsidiary, shall pay to RWBRDCL as a
     royalty a sum equal to EIGHT PER CENT (8%) of the Net Invoice Price of all
     Products sold, or otherwise disposed of by RWBSCL subject to a maximum in
     each year of EUR30,000 in accordance with the terms of Section 7 hereof.

6    ACCOUNTS

     To enable the determination of the sum due as royalties, GSRW shall during
     the life of this Licence Agreement cause RWBSCL to keep at its principal
     place of business, true, clear particular and separate accounts and records
     and permit and in every way facilitate inspection and copies to be taken of
     them by a representative or representatives of RWBRDCL at reasonable times
     on giving reasonable notice. Payments shall be transferred and credited to
     an account of RWBRDCL, at such bank as RWBRDCL may from time to time
     nominate for the purpose, of the amount due or paid in any manner as may be
     determined by RWBRDCL from time to time.

7    DUE DATES FOR PAYMENTS

     GSRW shall cause RWBSCL on the _____________ day of _____________ and every
     three (3) months thereafter or such other dates as agreed by the parties
     from time to time while this Licence Agreement is in force, to render to
     RWBRDCL a statement showing details of the sum due as royalties and GSRW
     shall cause RWBSCL to pay the sum due, within thirty (30) days of the date
     on which each and every such statement is due to be rendered.

8    CONFIDENTIAL TREATMENT OF INFORMATION

     Save as provided at Clause 4 hereof GSRW agrees to keep strictly secret and
     confidential during the term of any Patent and for two (2) years
     thereafter, all and any information, acquired from RWBRDCL pursuant to this
     Licence Agreement (herein referred to as "Confidential Information"),
     except where disclosure or use of such information is expressly permitted
     by RWBRDCL, or where such Confidential Information has come into the public
     domain other than due to an unauthorised act of GSRW.

                                        3
<PAGE>
9    ASSIGNMENT

     GSRW shall not grant, assign, sub-licence, mortgage or otherwise charge or
     convey, voluntarily or involuntarily any rights accruing to GSRW under this
     Licence Agreement except to its affiliates, without the prior written
     consent of RWBRDCL. Such consent may be withheld without reason being
     given.

10   REPRESENTATIONS AND WARRANTIES

10.1 RWBRDCL represents that, the rights licensed hereunder do not infringe the
     rights of any third party.

10.2 RWBRDCL warrants that it owns, and throughout the term of this Agreement
     will own, all right, title and interest to the Invention and the Patents,
     free and clear of any lien or encumbrance and the use of the Invention by
     RWBSCL will not infringe any rights of third parties in any country of the
     Territory.

11   IMPROVEMENTS

11.1 Where either party makes any improvement on the Invention, that Party shall
     own all legal and beneficial rights and interests in any said improvements
     on the Invention.

11.2 The Parties shall jointly and severally own all legal and beneficial rights
     and interests in any improvements on the Invention made jointly by the
     Parties.

11.3 Where either Party makes any improvement on the Invention, that Party shall
     on reasonable terms offer to disclose said improvement on the Invention to,
     and permit the use of said improvement on the Invention by the other Party.

12   TERMINATION

     If the royalties due hereunder have not been paid within the time allowed
     by this Licence Agreement or if either party shall breach of any of the
     representations, warranties, covenants, promises or undertakings herein
     contained and on its part to be performed or observed and shall not have
     remedied such breach within thirty (30) days after notice is given to the
     breaching party by the non-breaching party requiring such remedy or if
     either party shall have an Examiner appointed over the whole or any part of
     its assets or an order is made or a resolution passed for winding up of
     such party unless such order is part of a scheme for reconstruction or
     amalgamation of such party then the other party may forthwith terminate
     this Licence Agreement without being required to give any or any further
     notice in advance of such termination but such termination shall be without
     prejudice to the remedy of such party to sue for and recover any royalties
     then due and to pursue any remedy in respect of any previous breach of any
     of the covenants or agreements contained in this Licence Agreement.

                                        4
<PAGE>
13   DURATION

13.1 Subject to the provisions for termination hereinbefore contained, this
     Licence Agreement shall operate from the Operative Date and shall continue
     in force for a period of five (5) years.

13.2 On expiration of this Licence Agreement RWBRDCL may on request enter into a
     further licence agreement on terms and for a period to be agreed, provided
     that no such further Licence Agreement shall continue for any period which
     shall expire later than [one (1) day] prior to the date on which any Patent
     shall expire.

13.3 RWBRDCL shall notify GSRW in writing of any expiry of this Licence
     Agreement no later than thirty (30) day prior to any expiry. If RWBRDCL
     fails to so notify GSRW, the Parties shall at the election of GSRW be
     deemed to have entered into a further licence agreement for a period of one
     (1) year commencing next after any such expiry. The terms of this Licence
     Agreement including the provisions of this sub-clause shall apply mutatis
     mutandis to any such further licence agreement, provided that no such
     further licence agreement shall expire later than one day (1) prior to the
     date on which any Patent shall expire. The provisions of this sub-clause
     shall not apply where this Licence Agreement or any such further licence
     agreement is terminated under Clause 12 hereof or any corresponding term
     deemed to be in any such further licence agreement.

13.4 This Licence Agreement shall not be modified, amended or supplemented in
     any way unless such modification, amendment or supplement is agreed to in
     writing by each of the Parties hereto.

14   PATENTS AND APPLICATIONS

     RWBRDCL shall during the life of this Licence Agreement pay all costs and
     fees payable in respect of the Applications and do all such acts and things
     as may be necessary to maintain and keep on foot the Patents including any
     additional Applications and improvements requested by GSRW and RWBRDCL
     shall apply for or continue to prosecute any application for any extension
     of the term of any Patent if so requested by GSRW.

15   INFRINGEMENT

     If any infringement action, proceedings or claim of any kind is threatened
     or instituted against GSRW resulting from the exercise of any rights
     granted under the Licence Agreement RWBRDCL shall take timely steps to
     defend such action, proceeding or claims and shall promptly notify GSRW.
     GSRW shall not be obliged to defend RWBRDCL against any such action
     proceeding or claim. RWBRDCL shall defend such actions at its own expense.
     At the request of RWBRDCL GSRW shall permit RWBRDCL to intervene or appear
     in connection with any action proceeding or claim at the sole expense of
     RWBRDCL. The rights of RWBRDCL under this Licence Agreement shall in no way
     be affected by any adverse decision in or with respect to any such action,
     proceeding or claim.

                                        5
<PAGE>
16   COUNTRIES IN WHICH PATENT APPLICATIONS ARE FILED

     RWBRDCL and GSRW shall decide in which countries, if any, any further
     Applications are to be filed. Each and every further Application for a
     Patent for the Invention so filed shall be notified to GSRW by RWBRDCL and
     each such further Application for a Patent for the Invention shall be
     deemed to be included in Schedule One on the date on which it is filed.

17   FORCE MAJEURE

     In the event that either Party is delayed or hindered in the performance of
     its obligations hereunder by force majeure this Licence Agreement shall
     remain in suspense until the cause thereof has ceased to delay or hinder.
     For the purpose of this Licence Agreement, but not by way of limitation,
     force majeure shall mean any cause beyond the reasonable control of the
     Party liable to perform unless conclusive evidence to the contrary is
     provided and shall include strikes, riots and sabotage, acts of war or
     terrorism, acts of piracy, destruction of essential equipment by fire,
     explosion, storm, flood, earthquake or other natural disaster, compliance
     with economic, trade or political sanctions, failure of power supplies or
     transport facilities.

18   SEVERABILITY

     In the event any provision of this Licence Agreement is declared invalid or
     unenforceable or becomes unlawful in its operation or any part thereof,
     such provision shall not affect the rights and duties of the Parties with
     regard to the remaining provisions of this Licence Agreement which shall
     continue as binding.

19   OUTSTANDING ROYALTY ON TERMINATION

     On the expiration or sooner termination of this Licence Agreement, GSRW
     shall pay to RWBRDCL within thirty days (30) following the date of such
     expiration or sooner termination all royalties outstanding on the date of
     such expiration or sooner termination.

20   COSTS OF LICENCE AGREEMENT

     RWBRDCL agrees to be responsible for the costs incurred in respect of the
     preparation and recording of this Licence Agreement.

21   ARBITRATION

     If any dispute or difference of any kind whatsoever arises or occurs
     between the Parties in relation to any thing or matter arising under or out
     of or in connection with this Licence Agreement the Parties shall appoint
     an arbitrator (the "Arbitrator") and submit such dispute or difference to
     such arbitrator whose award shall be binding. If the Parties fail to agree
     on the appointment of an arbitrator within one (1) calendar month of the
     date on which such dispute or difference arises or occurs either Party may,
     on giving one (1) calendar months notice to the other Party, refer such
     dispute or difference to arbitration under the Arbitration Rules of the
     Chartered Institute of Arbitrators - Irish Branch.

                                       6
<PAGE>
22   GOVERNING LAW

     This Licence Agreement shall be governed by and construed in accordance
     with Irish law. The Parties hereby agree that the Courts of Law in Ireland
     shall have exclusive jurisdiction in any action in respect hereof, and that
     in the event of such proceeding being commenced service of documents at
     such address as is the address for the time being of the addressee by
     prepaid registered post, shall be deemed good service.

23   The Parties hereto agree that (i) this Licence Agreement supersedes, in all
     respects, the terms and provisions of that certain Licence Agreement, dated
     November 19, 1999 (the "Original Licence Agreement") by and between RWBRDCL
     (formerly Roaring Water Bay Vodka Company Limited) and RWBSCL, and (ii) the
     Original Licence Agreement shall no longer have any force or effect as of
     the date hereof.

                                       7
<PAGE>
IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed,
intending that it shall be legally binding upon them their executors,
administrators, heirs, estates, successors and assigns.

PRESENT WHEN THE COMMON SEAL of
THE ROARING WATER BAY (RESEARCH AND
DEVELOPMENT) COMPANY LIMITED
was affixed hereto.

                                        /s/ David Phelan
                                        ----------------------------------------
                                        Director

                                        /s/ Patrick Rigney
                                        ----------------------------------------
                                        Director/Secretary

EXECUTED AS A DEED BY:

FOR AND ON BEHALF OF GSRWB, INC.

/s/ Mark Andrews
-------------------------------------

                                       8
<PAGE>
                                  SCHEDULE ONE

                               PATENT PUBLICATIONS

<TABLE>
<S>                <C>
Irish Patent No:   IE990967
Date Filed:        July 12, 2000
Entitled:          "Packaging for a bottle assembly"

Irish Patent No:   990969
Date Filed:        July 12, 2000
Entitled:          "Packaging for a bottle assembly"

UK Patent NO:      GB2344095
Date Filed:        May 31, 2000
Entitled:          "Stackable bottles":
</TABLE>

                                       9
<PAGE>
                                  SCHEDULE TWO

For the purposes of this Licence Agreement the Territory is each and every
country in the World.

                                       10

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