Document:

EXHIBIT
4.1

 

 

 

FIFTH
AMENDMENT 

 

TO
THE

 

AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT

 

BETWEEN

 

CASTLE
BRANDS INC.,

CASTLE
BRANDS (USA) CORP.

 

AND

 

ACF
FINCO I LP

 

DATED
AS OF SEPTEMBER 22, 2014

 

 

 

    	 

    	 

    

 

FIFTH
AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

This
Fifth Amendment to Amended and Restated Loan and Security Agreement (this “Amendment”) is dated as of
the date of execution of this Amendment by “Lender” (as defined below) (the “Effective Date”)
and is by and among CASTLE BRANDS INC., a corporation organized under the laws of the State of Florida (“CBI”),
and CASTLE BRANDS (USA) CORP. a corporation organized under the laws of the State of Delaware (“CBUSA”)
(individually and collectively, “Borrower”), and ACF FINCO I LP, a Delaware limited partnership
and successor-in-interest to Keltic Financial Partners II, LP (“Lender”).

 

RECITALS:

 

Borrower
and Lender are parties to an Amended and Restated Loan and Security Agreement dated as of September 22, 2014, as amended by a
First Amendment dated as of August 7, 2015, by a Second Amendment dated as of August 17, 2015, by a Third Amendment dated as of
October 18, 2017, and by a Fourth Amendment dated as of May 15, 2018 (as so amended, the “Loan Agreement”),
in connection with which Borrower delivered an Amended and Restated Revolving Credit Note dated May 15, 2018 in a maximum principal
amount of $23,000,000 (the “Revolving Credit Note”), 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 “Loan Documents”).

 

Borrower
has requested that Lender increase the “Revolving Credit Limit” (as described in the Loan Agreement) by $2,000,000,
and increase the maximum amount of Inventory to be considered under the “Borrowing Base” (as described in the Loan
Agreement) by $2,000,000. Upon the terms and conditions contained in this Amendment, Lender has agreed to amend the Loan Agreement
as provided below.

 

AGREEMENT:

 

1.
Defined Terms. 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.

 

2.
Borrower Representations. Borrower hereby represents to Lender, that:

 

(a)
All Loan Documents executed by Borrower, including without limitation the Loan Agreement, constitute valid and legally binding
obligations of Borrower, enforceable against Borrower in accordance with the terms thereof;

 

(b)
Borrower has no claims, offsets, counterclaims, or defenses with respect to the payment or performance of any Obligations owing
to Lender under any of the Loan Documents;

 

(c)
After giving effect to this Amendment, no Default or Event of Default has occurred and is continuing under the terms of the Loan
Documents; and

 

    	 

    	 

    

 

(d)
As a material inducement to Lender entering into this Amendment, Borrower acknowledges and agrees that Lender is relying on the
accuracy and veracity of each of the above representations.

 

3.
Loan Agreement Amendments. The Loan Agreement is hereby amended as follows:

 

	 	(a)	Revolving
    Credit Limit. The reference to “TWENTY THREE MILLION AND 00/100 DOLLARS ($23,000,000.00)” contained in clause
    (a) of Section 2.1 of the Loan Agreement is hereby deleted in its entirety and replaced with “TWENTY FIVE MILLION
    AND 00/100 DOLLARS ($25,000,000.00)”.
	 	 	 
	 	(b)	Borrowing
    Base. Clause (ii) of paragraph (b) of the definition of “Borrowing Base” contained in the Definitions Schedule
    of the Loan Agreement is hereby amended by deleting the reference to “Ten Million and 00/100 Dollars ($10,000,000.00)”
    contained therein, and by substituting therefor “Eleven Million and 00/100 Dollars ($11,000,000.00)”.

 

4.
Amended and Restated Revolving Credit Note. As a condition precedent to the effectiveness of this Amendment and specifically
Lender’s increase of the Revolving Credit Limit, on or before the date of this Amendment Borrower shall execute and deliver
to Lender an Amended and Restated Revolving Credit Note in form and content acceptable to Lender in Lender’s sole discretion.

 

5.
Reimbursement of Lender. As consideration for Lender’s increase of the Revolving Credit and amendment of the Loan
Agreement described above, and pursuant to Sections 3.4 and 10.10 of the Loan Agreement, Borrower shall (a) pay to Lender on the
date hereof a commitment fee for the increase of the Revolving Credit in the amount of Fifty Thousand and 00/100 Dollars ($50,000.00),
and (b) 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 Amendment. With respect
to any amount required to be paid or reimbursed by Borrower pursuant to the foregoing provisions of this paragraph 5, 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.

 

6.
Refinancing Closing Fee. In the event Borrower refinances the Revolving Credit with Lender prior to July 31, 2019 to extend
the Revolving Credit Termination Date beyond July 31, 2019, the Closing and Commitment Fee chargeable to Borrower and calculated
based on the Revolving Credit Limit in connection with such refinancing shall disregard the increase in the Revolving Credit Limit
effectuated by this Amendment (i.e., $2,000,000.00). Notwithstanding anything to the contrary contained herein, Lender is not
hereby agreeing to, or otherwise committing to, any refinancing or extension of the Revolving Credit beyond July 31, 2019, and
any further amendment, restatement, extension or other modification of the Credit Agreement or any other Loan Document, including
but not limited to a refinancing of the Revolving Credit as described above, shall be in Lender’s sole discretion.

 

7.
Effective Date. This Amendment shall be effective as the Effective Date.

 

8.
Specificity of Provisions. The amendments set forth herein are limited precisely as written and shall not be deemed to
(a) be a consent to or a waiver of any other term or condition of the Loan Agreement or any other Loan Document, or (b) prejudice
any right or rights which Lender may now have or may have in the future under or in connection with the Loan Agreement or any
other Loan Document. From and after the Effective Date of this Amendment, whenever the Loan Agreement is referred to in the Loan
Agreement or in any other Loan Document, it shall be deemed to mean the Loan Agreement as modified by this Amendment.

 

    	 

    	 

    

 

9.
Binding Effect of Loan Documents. Borrower hereby acknowledges and agrees that upon giving effect to this Amendment, the
Loan Agreement, the Revolving Credit Note and each other Loan Document shall continue to be binding upon such Borrower and shall
continue in full force and effect.

 

10.
Choice of Law. 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.

 

11.
Counterparts. 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.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

[SIGNATURE
PAGE IMMEDIATELY FOLLOWS]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective duly authorized
officers.

 

	LENDER:	 
	 	 	 
	ACF
    FINCO I LP	 
	 	 	 
	By:	/s/
    Oleh Szczupak	 
	Name:	Oleh
    Szczupak	 
	Its:	Vice
    President	 

	Effective
    Date:	10/4/2018	 

	 	 	 
	BORROWER:	 
	 	 	 
	CASTLE
    BRANDS INC.	 
	 	 	 
	By:	/s/
    Alfred J. Small	 
	Name:	Alfred
    J. Small	 
	Its:	CFO	 
	Date:	10/4/2018	 
	 	 	 
	CASTLE
    BRANDS (USA) CORP.	 
	 	 	 
	By:	/s/
    Alfred J. Small	 
	Name:	Alfred
    J. Small	 
	Its:	CFO	 
	Date:	10/4/2018EXHIBIT
4.2

 

AMENDED
AND RESTATED REVOLVING CREDIT NOTE

 

	 	 	October
    4, 2018
	$25,000,000.00	 	Tarrytown,
    New York

 

FOR
VALUE RECEIVED, CASTLE BRANDS INC., a corporation organized under the laws of the State of Florida (“CBI”),
and CASTLE BRANDS (USA) CORP., a corporation organized under the laws of the State of Delaware (“CBUSA”)
(collectively, “Borrower”), jointly and severally promise to pay to the order of ACF FINCO I LP,
a Delaware limited partnership (“Lender”), at 560 White Plains Road, Suite 400, 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 Amended and Restated Loan and Security Agreement dated as of September 22, 2014 between Borrower
and Lender, as amended by a First Amendment dated on or about August 7, 2015, by a Second Amendment dated on or about August 17,
2015, by a Third Amendment dated as of October 18, 2017, by a Fourth Amendment dated on or about May 15, 2018, and by a Fifth
Amendment dated on or about the date of this Note (as so amended, together with all Exhibits and Schedules thereto, as the same
may be subsequently amended, extended, restated or otherwise modified, the “Loan Agreement”). The aggregate
unpaid principal balance hereof shall not exceed at any time the sum of TWENTY FIVE MILLION AND 00/100 DOLLARS ($25,000,000.00).
Unless defined herein, capitalized terms shall have the meanings given such terms in the Loan Agreement.

 

The
entire unpaid principal balance of this Note, all accrued and unpaid interest thereon, all fees, costs and expenses payable in
connection with the Revolving Credit, and all other sums due hereunder and under the Loan Documents in connection with the Revolving
Credit, shall be due and payable in cash IN FULL on the Termination Date.

 

Borrower
shall pay interest on the outstanding principal amount of this Note to Lender until all Obligations with respect to this Note
and the Revolving Credit 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 principal balance of this Note shall bear interest at the rate set forth in Section 3.1 of the Loan
Agreement, unless otherwise provided for by the terms of the Loan Agreement.

 

All
repayments or prepayments of principal, all payments of interest and all payments of fees, costs and expenses payable in connection
with the Revolving Credit 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.

 

This
is the “Revolving Credit Note” 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, liens and encumbrances granted by Borrower or any other person
to Lender pursuant to the Loan Agreement, all collateral security agreements executed and/or delivered by Borrower or any other
person to Lender, and all of the other Loan Documents, 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, extinguishment, satisfaction, discharge, termination or novation of, the Amended
and Restated Revolving Credit Note executed and delivered by Borrower to Lender dated on or about May 15, 2018.

 

    	 

    	 

    

 

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 Revolving Credit.

 

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 Revolving Credit 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.

 

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.

 

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.

 

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.

 

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’s interest in this Note to other financial institutions of Lender’s choice and on such terms
as are acceptable to Lender in Lender’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.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

[SIGNATURE
PAGE IMMEDIATELY FOLLOWS]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Note on the day and year first above written.

 

	 	CASTLE
    BRANDS INC.
	 	 
	 	By:	/s/
    Alfred J. Small
	 	Name:
    	Alfred
    J. Small
	 	Title:
    	CFO

 

	STATE
    OF 	New
    York 	)	 	 
	 	 	)	SS.:	 
	COUNTY
    OF	New
    York 	)	 	 

 

On
the _4th__ day of _October_________ in the year _2018___________, 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.

 

	 	/s/
    Donna Hibbert
	 	Notary
    Public

 

	 	CASTLE BRANDS (USA) CORP.
	 	 
	 	By:	/s/
    Alfred J. Small
	 	Name:
    	Alfred
    J. Small
	 	Title:
    	CFO

 

	STATE
    OF 	New
    York 	)	 	 
	 	 	)	SS.:	 
	COUNTY
    OF	New
    York 	)	 	 

 

 

On
the _4th__ day of __October______ in the year __2018__________, 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.

 

	 	/s/
    Donna Hibbert
	 	Notary
    Public

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