Document:

EXHIBIT
10.2

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

	 

                                                         

AMENDED
AND RESTATED

NATIONAL
DISTRIBUTION AGREEMENT

 

This
Amended and Restated National Distribution Agreement (this “Agreement”) is made as of March 29, 2017 by and between
Gosling-Castle Partners Inc. (f/k/a Gosling Partners Inc.), a Delaware corporation (“Supplier”), and Castle Brands
(USA) Corp., a Delaware corporation (“Importer”).

 

WHEREAS,
Gosling’s Export (Bermuda) Limited (“GXB”) and Importer entered in to that certain National Distribution Agreement,
dated as of September 3, 2004 (the “National Distribution Agreement”);

 

WHEREAS,
pursuant to the Export Agreement (as defined below), GXB, among other things, assigned its rights, title and interest in and to
the National Distribution Agreement to Supplier;

 

WHEREAS,
Supplier (as successor-in-interest to GXB) and Importer entered in to Amendment No. 2 to the National Distribution Agreement,
dated as of April 1, 2014, as further amended by that letter agreement to the National Distribution Agreement, dated as of June
9, 2015 (collectively, the “Prior Agreement”), it being understood that no Amendment No. 1 to the National Distribution
Agreement has ever been executed; and

 

WHEREAS,
the parties hereto have agreed to amend and restate in its entirety the Prior Agreement as set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

1.
Definitions.

 

(a)
“Products” shall mean all products listed in Schedule A.

 

(b)
“Territory” shall mean the domestic market of the 50 states of the United States of America, and such other markets
as may be added by mutual consent.

 

(c)
“Trademarks” shall mean the trademarks Gosling’s Black Seal Rum, Gosling’s Gold Bermuda Rum, Gosling’s
Family Reserve Old Rum, Dark ‘n Stormy and all other trademarks, brand names and logo designs used on or in connection with
the Products.

 

    	 	 	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

(d)
“Initial Term” shall mean the period commencing January 1, 2005 (or such earlier date that the Producer has completed
the termination of its pre-existing Import Agreement) and continuing through March 31, 2030.

 

(e)
“Renewal Term” shall mean the period commencing the first day following the end of the Initial Term or any prior Renewal
Term and continuing for ten (10) years thereafter.

 

(f)
“Contract Year” shall mean the twelve (12) month period commencing January 1 and ending December 31 of that calendar
year.

 

(g)
“Case” shall mean (i) for rums, twelve (12) bottles of 750 ml. each or an equivalent nine (9) liter volume, (ii) for
Goslings Dark n’ Stormy RTD, four (4) cases of six four-packs of one liter each, or an equivalent twenty four (24) liter
volume, and (iii) for Goslings Rum Swizzle RTD, two (2) cases of six bottles of 1.75 liter each, or an equivalent twenty one (21)
liter volume.

 

(h)
“Export Agreement” means that certain Export Agreement originally dated as of February 14, 2005, by and between Supplier
and GXB, as amended by Amendment No. 1 to Export Agreement on February 18, 2005, Amendment No. 2 to Export Agreement on July 25,
2012, Amendment No. 3 to the Export Agreement on June 9, 2015, Amendment No. 4 to Export Agreement of even-date herewith, and
as further amended from time-to-time.

 

2.
Appointment.

 

(a)
Subject to Supplier’s rights and obligations under the Export Agreement, Supplier hereby appoints Importer as the sole and
exclusive importer and distributor of the Products for the Territory, except as provided under the Export Agreement and Polar
Agreement (defined therein).

 

(b)
Importer hereby accepts appointment as the sole and exclusive importer of the Products for the Territory and shall, during the
term of this Agreement, use all reasonable efforts to distribute the Products throughout the Territory. Importer hereby acknowledges
the limitations of its rights, including limitations on its exclusivity, as provided in the Export Agreement and Polar Agreement.

 

3.
Duration.

 

The
Initial Term of this Agreement shall continue for a period through March 31, 2030, unless sooner terminated in accordance with
Section 11. Upon expiration of the Initial Term, this Agreement will automatically renew for additional Renewal Terms, unless
sooner terminated in accordance with Section 11.

 

    	 	2	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

4.
Terms of Sale and Payment.

 

(a)
All sales of the rum Products by Supplier to Importer shall be on an FOB Sazerac Company, Inc., or such other bottler as GXB may
select (the “Rum Bottler”) basis, and all sales of the ginger beer Products by Supplier to Importer shall be on an
FOB Polar Corp. (the “GSGB Bottler”) basis, in either event, at the prices set in accordance with Schedule A,
and as amended hereafter from time to time pursuant to Section 4(b) below. Payment shall be made to a bank designated by Supplier
and shall be due sixty (60) days from the date of the bill of lading. Because Supplier will be funding marketing programs in the
Territory with the aforementioned receivables, time shall be of the essence for receipt of payments sixty (60) days from the date
of bills of lading.

 

(b)
All carriers engaged to ship the Products within the Territory for Importer (or any distributor designated by Importer in the
Territory) shall be the agents of Importer. The risk of loss thereon shall pass immediately to Importer upon delivery of the rum
Products from the Rum Bottler and upon delivery of the ginger beer Products from the GSGB Bottler, in either event, to such carrier
for shipment within the Territory. Importer shall have the right to determine the point of destination in the Territory and the
method of shipment of the Products.

 

(c)
It is the intention of this Agreement that Importer will receive a net margin amount as set forth in the following table (the
“Net Margin”). Importer will also be entitled to reimbursement for Control State (17 states plus Montgomery County)
brokers’ commissions as approved by Supplier, any mutually agreed salaries, warehousing, insurance, and other costs of distribution,
such that Importer is able to net the agreed Net Margin, but not amounts above or below the agreed Net Margin. The reimbursements
shall not include the normal salaries, travel and entertainment and other overhead costs of the Importer, except with respect
to certain mutually agreed personnel that will be hired and directed by Importer but will follow the strategic marketing plan
prepared by the Supplier (“Supplier Sales Personnel”). The costs of Supplier Sales Personnel, including normal health
or other benefits, will be reimbursed by Supplier.

 

    	 	3	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

	Year	 	Volume
    Range	 	Net
    Margin to Importer
	2004
    (if applicable)	 	All
    Sales	 	[
    * ] per case
	2005	 	Up
                                         to [ * ] cases

        Over
        [ * ] cases
	 	[
                                         * ] per case

        [
        * ] per case

	2006
    and later	 	Up
                                         to [ * ] cases

        Over
        [ * ] cases
	 	[
                                         * ] per case

        [
        * ] per case

	For
                                         Dark ‘n Stormy RTD

        2012
        and later
	 	[
    * ]	 	[
    * ] per 1⁄2 case
	For
                                         Ginger Beer

        After
        April 1, 2014
	 	[
    * ]	 	[
                                         * ] per case

        (See
        Schedule A)

 

(d)
Supplier will pay to Importer a fee of $[ * ] per spirit case to help defray the normal overhead costs of the Importer.

 

(e)
Importer may bill Supplier monthly for reimbursements, and should be reimbursed by Supplier within 15 days by wire transfer to
Importer’s designated account. Importer and Supplier will work together to coordinate mutual payments and reimbursements,
to minimize the levels of net funding required by either party.

 

(f)
Any excess funds received by Importer, net of agreed Net Margins, reimbursements or payments to the Affiliate, shall be promptly
forwarded to Supplier. It is the intention of this payments section to assure Importer that it receive its agreed Net Margin,
but not amounts above or below the agreed Net Margin, except as related to agreed reimbursements.

 

5.
Marketing and Advertising.

 

(a)
Supplier shall be responsible for the creation, development and implementation of all marketing, advertising and promotional efforts
of the products. At least four times per Contract Year, Supplier shall review with Importer the Supplier’s plans for the
current and following Contract Year. Importer will be responsible for sales efforts in the field, and will coordinate with the
Supplier with respect to field-based marketing programs, including local promotions, product tastings, discounts, etc., with the
cost of such programs borne entirely by the Supplier.

 

(b)
The costs of marketing and advertising will be borne by Supplier. To the extent that the Importer pays for any billings relative
to marketing or advertising, Supplier agrees to promptly reimburse Importer, unless there is a legitimate dispute relative to
any such invoice.

 

    	 	4	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

6.
Representations and Warranties of Importer. Importer represents, warrants and covenants to Supplier as follows:

 

(a)
Importer holds in full force and effect the federal, state and local licenses or permits that are necessary to conduct its business
as an importer of the Products and to engage in the transactions intended by this Agreement.

 

(b)
Importer shall maintain a distributor network of adequate size to represent and promote the sales of the Products throughout the
Territory. Such sales force shall be kept properly informed as to all advertising, marketing and promotional programs and policies
regarding the Products.

 

(c)
Importer shall conduct its activities under this Agreement in accordance with local, state and federal laws and regulations regarding
the sale of the Products.

 

(d)
Importer shall monitor its customers’ inventories of the Products to ensure that quantities are adequate to service the
requirements of the markets in the Territory. Importer shall promptly deliver, or arrange for direct import shipments of the Products,
to its customers in the Territory in accordance with good business practice and local custom.

 

(e)
Importer shall timely file all price schedules and reports as may be required by applicable laws and regulations.

 

(f)
Importer shall not terminate any existing wholesaler, or appoint any new wholesaler, in the Territory without the prior written
consent of Supplier; which consent shall not be unreasonably withheld.

 

(g)
Importer is aware of the terms of the Export Agreement and the obligations and restrictions of the Supplier (as “Company”)
set forth therein.

 

7.
Representations and Warranties of Supplier. Supplier represents, warrants and covenants to Importer as follows:

 

(a)
Supplier has the authority to enter into and carry out its obligations under this Agreement.

 

(b)
The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not act as a breach
of any agreement or understanding to which Supplier is a party.

 

(c)
Supplier has the right to designate and appoint the Importer as the distributor of the Products in the Territory pursuant to this
Agreement.

 

    	 	5	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

(d)
The Products sold to Importer under this Agreement shall be merchantable and fit for human consumption. The Products shall be
manufactured, packaged and labeled in conformity with applicable U.S. federal, state and local laws, rules and regulations and,
specifically, the rules and regulations of the Federal Alcohol Tax and Trade Bureau and the Food and Drug Administration. Samples
of the Product have been provided to Importer. All shipments of the Products shall conform to any samples provided.

 

(e)
The Products sold to Importer shall be free and clear of any liens or encumbrances. Neither the execution of this Agreement, nor
compliance with its terms, will result in the creation or imposition of any lien, charge, encumbrance or restriction of any nature
by any third party upon the Products sold to Importer.

 

(f)
Supplier shall maintain an adequate inventory of the Products with which to supply Importer. Supplier shall accept all orders
reasonably submitted by Importer, with shipment to follow not later than thirty (30) days from receipt of an order, unless excused
by Section 15 below, or as otherwise agreed upon by the parties.

 

(g)
Supplier shall use commercially reasonable efforts to prevent the sale of unauthorized shipments of the Products in the Territory
by entities or persons other than Importer, except as contemplated in the Export Agreement and Polar Agreement (as defined in
the Export Agreement). In this regard, Supplier shall not sell or otherwise transfer any of the Products to any distributor whom
Supplier knows, or has reason to believe, will, either directly or indirectly, sell or otherwise transfer the Products in the
Territory, except as contemplated in the Export Agreement and Polar Agreement.

 

(h)
Subject to the provisions of Sections 8 and 10 below and in all events, with the full right to select counsel and supervise the
legal and any settlement processes, Supplier shall defend, indemnify and hold harmless Importer from and against any and all damages
and liability, costs or expenses, including attorneys’ fees, it may incur as a result of product liability, trademark infringement,
product recall, breach of contract or other action relating to breach of warranty or representation by Supplier.

 

(i)
Supplier warrants that the shelf life of all Products sold to Importer shall be not less than twelve (12) months provided all
such Products are properly handled, stored and shelved by Importer and its customers.

 

8.
Product Liability and Returns.

 

(a)
During the term of this Agreement, each party shall maintain, in full force and effect, general liability insurance with product
hazard coverage regarding the sale of the Products in the Territory in an amount of not less than five million dollars ($5,000,000)
in the aggregate and one million dollars ($1,000,000) for single accident occurrence. Such insurance shall contain a broad form
vendor’s endorsement inuring to the benefit of the other party. Each party shall, on an annual basis, furnish to the other
party a certificate confirming such coverage.

 

    	 	6	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

(b)
Subject to the provisions of Section 7(i) above, any Products not merchantable due to quality deficiencies, packaging problems
or errors committed by Supplier or its suppliers, may be returned to Supplier at Supplier’s cost, for full credit or replacement,
provided that notice of such defect, if patent, is given to Supplier within six (6) months of receipt of shipment of the Products
and, if latent, within six (6) months after Importer’s knowledge of the defect. Supplier shall not be obliged to issue a
credit for any Products that have been rendered unmerchantable by inordinate delays in shipping, improper handling or other negligent
acts on the part of Importer or its customers. Notice of unmerchantable Products shall be given to all parties upon receipt of
such information.

 

9.
Rights of First Refusal. During the term of this Agreement, Importer shall have the right of first refusal regarding:

 

(a)
any other current or future rum or ginger beer products Supplier currently maintains in, or adds to, its product line for sale
in the Territory.

 

(b)
If Importer exercises its option pursuant to paragraph 9(a) above, paragraph 1(a) shall be automatically amended and the term
“Products” as used in this Agreement shall be deemed to include such additional product. In the event that Importer
declines to exercise such option, Supplier shall be free to negotiate with other Importers for such products, but Supplier shall
not thereafter enter into an importation agreement with any other importer upon terms more favorable than those offered to Importer.

 

10.
Intellectual Property.

 

(a)
Supplier represents and warrants that it has entered into the Export Agreement and pursuant to its rights thereunder, it has the
authority to market and sell the Products into the Territory for resale; it has a license to use all common law or statutory rights
in all symbols, designs, words and other trade dress features used upon or associated with the Products, whether registered as
trademarks, service marks or copyrights, or not (the “Intellectual Property”); and it is authorized to grant rights
or sublicenses to Importer for non-exclusive and limited use of the Intellectual Property in connection with the sale and distribution
of the Products within the Territory.

 

(b)
Supplier hereby grants to Importer a non-exclusive license to use the Intellectual Property in the Territory for the Term of this
Agreement for the limited purposes of the sale, promotion and distribution of the Products, subject to the following, to which
the Importer hereby agrees:

 

(i)
Importer shall use the Intellectual Property only in connection with the sale, promotion and distribution of the Products.

 

    	 	7	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

(ii)
All uses of the Intellectual Property shall reproduce faithfully the design and appearance of the Intellectual Property as represented
in or on the labels and packaging or as is otherwise provided by Supplier, including claims of copyright or trademark protection
and/or registration.

 

(iii)
Any uses of the Intellectual Property by Importer, shall first be approved by Supplier. E-mail approval shall be sufficient for
this purpose.

 

(iv)
The Intellectual Property shall not be used in juxtaposition or conjunction with intellectual property associated with any product
or service other than the Products and shall always be used in good taste and in a manner which is not in any way denigrating
to the Supplier or the Intellectual Property.

 

(v)
Importer shall have no right to sublicense to any third party the right to reproduce the Intellectual Property for any purpose,
except in connection with media advertising, which shall first be reviewed and approved in writing or provided (e.g., advertising
mats) by the Supplier.

 

(c)
Notwithstanding any rights granted in any provision of this Agreement, Importer expressly acknowledges and agrees that the Intellectual
Property is the property of the Supplier’s licensor(s) and Importer neither shall make claim nor assert any right to, or
interest in, the Intellectual Property during or after the expiration or termination of this Agreement, except the right to limited
non-exclusive use during the Term hereof in accordance with the foregoing provisions.

 

11.
Termination.

 

(a)
Supplier may terminate this Agreement prior to its expiration by giving notice to the Importer for any of the following reasons:

 

(i)
Importer, through failure to renew, or because of cancellation, suspension or revocation continuing for a period in excess of
sixty (60) days, has suffered the loss of any material license or permit required by law and necessary to carry out the provisions
of this Agreement;

 

(ii)
Importer has failed to make payment of any invoice in accordance with Supplier’s credit terms and has not remedied the failure
after thirty (30) days’ written notice of such failure and no bona fide dispute regarding said invoice(s) exists between
the parties;

 

    	 	8	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

(iii)
Importer has breached or failed to fulfill any other material term or condition of this Agreement and has not remedied the breach
or failure after thirty (30) days’ written notice of said breach or failure to perform and there is no bona fide dispute
that a material breach has occurred.

 

(iv)
Importer has changed ownership through a sale, merger, acquisition or other major change in equity control without the prior written
approval of Importer, with such approval not to be unreasonably withheld. For purposes of this provision, a major change shall
be defined as a change affecting more than twenty five percent (25%) of control at any one time or a cumulative series of changes
affecting fifty one percent (51%) of control.

 

(b)
Importer may terminate this Agreement prior to its expiration by giving notice to Supplier for either of the following reasons:

 

(i)
Supplier has failed to honor any commitment regarding sales, delivery, credits, allowances, returns, packaging quality or product
quality, and that such failure has continued for a period of thirty (30) days after written notice to Supplier.

 

(ii)
Supplier has failed to fulfill any other material term or condition of this Agreement and has not remedied this failure after
thirty (30) days’ notice thereof and there is no bona fide dispute that a material breach has occurred.

 

(c)
This Agreement shall terminate automatically and without notice for any of the following reasons:

 

(i)
Either party has filed a voluntary petition in bankruptcy or entered into an arrangement under a national or federal bankruptcy
statute or other voluntary proceeding under any federal, state, or local law for the settlement or extension of payment of its
obligations to general creditors; or

 

(ii)
An involuntary lien or petition in bankruptcy has been filed against either party and such involuntary lien or petition has not
been dismissed within thirty (30) days; or

 

(iii)
Either party ceases to do business; or

 

(iv)
The Export Agreement has terminated.

 

    	 	9	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

12.
Events Upon Expiration or Termination.

 

(a)
Upon the expiration of the final Term or upon the effective date of any termination of this Agreement, the following shall occur:

 

(i)
Subject to the provisions of Section 12(b) below, all outstanding, but unshipped orders for Product by the Importer shall be deemed
cancelled, whether previously accepted by Supplier or not.

 

(ii)
All outstanding invoices of Supplier to Importer for Product sold and delivered to carriers, whether due in accordance with their
terms or not, shall become due and payable immediately.

 

(iii)
Importer promptly shall release and deliver to Supplier (FOB Importer’s facility loading dock) all point-of-sale or other
materials in its possession that Supplier furnished to it without charge and any items in its possession (other than Product)
that bear Intellectual Property (as described in Section 10, above).

 

(iv)
Importer and its employees immediately shall cease all use of the Intellectual Property referred to in Section 10 above, except
as required to sell any remaining inventory held by Importer.

 

(v)
Supplier or its designee, shall have the option, for thirty (30) days after the effective date of expiration or termination, to
repurchase, at Importer’s laid-in-cost, its inventory of factory sealed cases of the Product and/or point-of sale material
for the Product purchased by Importer, less any sums for payments Importer owes to Supplier. Importer hereby agrees to sell said
inventory to Supplier, or Supplier’s designee, provided said Designee is a licensed vendor of alcoholic beverages, on said
terms, in the event Supplier provides timely written notice of the exercise of the aforementioned option.

 

(vi)
Both parties warrant and covenant that, upon expiration or termination, neither party will take any action to impair or diminish
the goodwill or business of the other party and neither party will disclose any confidential information about the other party.

 

(b)
Upon the occurrence of a termination event or following notice of termination to Importer, but prior to the effective date thereof,
Supplier shall honor Importer’s outstanding and unshipped orders or orders submitted prior to the effective date of termination
only on a payment-before-shipment basis, provided the following conditions are met:

 

(i)
All outstanding invoices due and owing to Supplier have been paid in full;

 

(ii)
Such orders are in accord with past purchasing practices;

 

(iii)
Such orders are scheduled for delivery prior to the effective date of Termination; and

 

(iv)
Such orders for the Product shall be sufficient to satisfy only Importer’s demand for the Product in the Territory prior
to the date of termination and not thereafter.

 

    	 	10	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

13.
Choice of Law and Disputes.

 

The
rights and obligations of the parties under this agreement shall not be governed by the provisions of the United Nations Convention
on Contracts for the International Sale of Goods but instead shall be construed and enforced in accordance with the laws of the
State of New York in the United States of America without giving effect to principles of conflict of laws. In the event any disagreement
or dispute between the parties arises under or out of this Agreement, such disagreement or dispute shall initially be submitted
to Judicial Mediation Services, Inc., a professional mediating service consisting of retired Federal and State judges (“JAMS”)
or a mutually agreed upon dispute resolution service. The mediation shall be conducted in accordance with the rules of JAMS or
such other dispute resolution service as might be agreed upon and shall be held in New York, New York. Any award made by JAMS
or such other dispute resolution service as might be agreed upon shall be binding upon the parties. Mediation shall be the preferred
remedy for breach of this Agreement by either party. The parties shall share equally all costs of mediation other than representation
by counsel which shall be at each party’s own expense.

 

14.
Miscellaneous.

 

(a)
All notices or consents provided for by this Agreement shall be in writing and shall be delivered by hand or registered or certified
mail to the party to whom notice or consent is to be given at the address set forth above. Such notice may be given by facsimile
but a confirming copy must be delivered by hand or registered or certified mail. The date of delivery of the written confirmation
will be considered the effective date of delivery of notice. For required Marketing and Intellectual Property approval, e-mail
notification shall be acceptable when confirmed by the receiving party.

 

(b)
This agreement represents the entire agreement between the parties, supersedes all their prior oral or written agreements or understandings,
including without limitation, the Prior Agreement, and shall not be changed except by a further written agreement or a written
amendment to this Agreement executed by both parties.

 

(c)
The failure by either party to exercise any of its rights under this Agreement shall not be construed as a waiver of such rights.
Any such failure shall not preclude the exercise of such rights at any later time.

 

    	 	11	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

15.
Force Majeure. If any party is prevented from performing any of its obligations hereunder by an occurrence beyond its reasonable
control such as, but not limited to, acts of God, fire, flood, war, insurrection, government regulations, raw material shortage,
strikes, or lack of common carrier facilities, then the affected party shall be excused from performance for so long as such occurrence
exists.

 

16.
Severability. If any term of this Agreement is in violation of, or prohibited by, any applicable law or regulation, such
term shall be deemed as amended or deleted to conform to such law or regulation without invalidating or amending or deleting any
other term of this Agreement.

 

17.
Assignment. Neither party may assign this Agreement without the prior written consent of the other party. Any purported
assignment without such consent shall be null and void.

 

18.
Notice. Any required notices pursuant to this Agreement shall be sent to:

 

For
Importer:

Castle
Brands (USA) Corp. 

122
East 42nd Street, Suite 5000,

New
York, New York 10168

Attn:
John S. Glover, President and CEO

 

with
a copy (which shall not itself constitute notice) to:

Holland
& Knight LLP

701
Brickell Avenue, Suite 3300

Miami,
Florida 33131

Attention:
Bradley D. Houser

 

For
Supplier:

Gosling-Castle
Partners Inc.

122
East 42nd Street, Suite 5000,

New
York, New York 10168

Attn:
E. Malcolm B. Gosling, President and CEO

 

with
a copy (which shall not itself constitute notice) to:

Gosling’s
Export (Bermuda) Ltd.

P.O.
Box HM 827

Hamilton,
HM CX

Bermuda

 

19.
Relationship of the Parties. The parties acknowledge that no joint venture has been created by this Agreement and that
neither party can take any action that is legally binding on the other party without the prior consent of the party to be charged.

 

[Signature
Page Follows]

 

    	 	12	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

IN
WITNESS WHEREOF, the parties have caused this agreement to be executed on the day and year first above written.

 

	CASTLE
    BRANDS (USA) CORP.	 
	 	 	 
	By:
    	/s/
    Alfred J. Small 	 
	 	Alfred
    J. Small	 
	 	Chief
    Financial Officer	 

 

	GOSLING-CASTLE
    PARTNERS INC.	 
	 	 	 
	By:	/s/
    Richard Lampen 	 
	 	Richard
    Lampen	 
	 	Director	 

 

[Signature
Page to Amended and Restated National Distribution Agreement]

 

    	 	13	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

EXHIBIT
1

 

SCHEDULE
A

 

GOSLINGS
GINGER BEER

 

	Item
    #	 	Description	 	US
                   Cost	 	Tax-Duty	 	 	Freight
    Cost	 	 	Total
    Cost
	GS0STD0008-24	 	8oz/24 Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	[
                                         * ]	 	 	$	[
                                         * ]
	GS0STD08-24X	 	8oz/24 Gingerbeer	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0DIET0008-24	 	8oz/24 Diet Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GS0DIET08-24X	 	8oz/24 Diet Gingerbeer	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS001ALC08-24	 	8.4oz/25 Gingerbeer 1% alc	 	$	[ * ]	 	$	[
                                       * ]	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GSWSTD12-24X	 	12oz/24 Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0FPST012-24X	 	12oz/24 Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0STD12-24DI	 	12oz/24 Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0DIET12-24DI	 	12oz/24 Diet Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0STD12-24CTL	 	12oz/24 Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GS0STD0012-24	 	12oz/24 Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GSWDIET12-24X	 	12oz/24 Diet Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0FPDT012-24X	 	12oz/24 Diet Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0DIET0012-24	 	12oz/24 Diet Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GS0STD0010-24	 	10oz/24 Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GS0DIET0010-24	 	10oz/24 Diet Gingerbeer 6 packs	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GS0STD1000-12X	 	1000/12 Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0STD1000-12	 	1000/12 Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GS0DIET1000-12X	 	1000/12 Diet Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0DIET1000-12	 	1000/12 Diet Gingerbeer [ * ]	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GS0BIBSTD-15X	 	1.5 gal Gingerbeer bag in box	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GS0BIBSTD-30X	 	3.0 gal Gingerbeer bag in box	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]

 

    	 	14	 

    	 

    

 

NOTE:
PORTIONS OF THIS EXHIBIT MARKED WITH A “[ * ]” ARE THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST BY THE COMPANY
TO THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT
HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THE COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

 

GOSLINGS
RUM

 

	Item
    #	 	Description	 	US
                                         Cost	 	Tax-Duty	 	 	Freight
    Cost	 	 	Total
    Cost
	GR1OLD0750-06	 	750/6 Old Family Rum 80
    proof	 	$	[* ]	 	$	[
                                         * ] 	 	 	$	[
                                         * ]	 	 	$	[
                                         * ]
	GR0OLD0700-06X	 	750/6 Goslings Old Family Rum 80 proof
    Export	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR0BLKGIF3-06	 	750/6 Dark N Stormy VAP w/ 2 cans	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR2BLKGIF1-06	 	750/6 Black Seal Rum 80 proof Winter
    VAP w/ 2 GB cans	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1BLKGIF1-06	 	750/6 Black Seal Rum 80 proof Summer
    VAP w/ 2 GB cans	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1BLK0750-06	 	750/6 Black Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR11510750-06	 	750/6 Black Seal Rum 151 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1GOL0750-12	 	750/12 Gold Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR0BLK0750-TRL	 	750/12 Black Seal Rum 80 proof Traveler
    (old label)	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1BLK0750-TRL	 	750/12 Black Seal Rum 80 proof Traveler	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1BLK0750-12X	 	750/12 Black Seal Rum 80 proof Export	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GR1BLK0750-12	 	750/12 Black Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR11510750-12	 	750/12 Black Seal Rum 151 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR0GOL0700-12X	 	700/12 Gold Seal Rum 80 proof	 	$	[ * ]	 	$	-	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1GOL0050-120	 	50/120 Gold Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1BLK0050-120	 	50/120 Black Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1GOL0375-24	 	375/24 Gold Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1BLK0375-24	 	375/24 Black Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1GOL1750-06	 	1750/6 Gold Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1BLK1750-06	 	1750/6 Black Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1GOL1000-12	 	1000/12 Gold Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR1BLK1000-12	 	1000/12 Black Seal Rum 80 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR11511000-12	 	1000/12 Black Seal Rum 151 proof	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR2DNS0008-24	 	8.45oz/24 cans RTD 7%	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]
	GR2DNS0008-24x	 	8.45oz/24 cans RTD 7% Export	 	$	[ * ]	 	$	-	 	 	$	-	 	 	$	[
                                         * ]
	GR0DNS0008-24	 	8.45oz/24 cans RTD 9%	 	$	[ * ]	 	$	[
                                       * ] 	 	 	$	[
                                       * ]	 	 	$	[
                                         * ]

 

    	 	15EXHIBIT
10.18

 

RESTRICTED
STOCK AWARD AGREEMENT

 

PURSUANT
TO THE

 

CASTLE
BRANDS INC.

 

2013
INCENTIVE COMPENSATION PLAN

 

THIS
AGREEMENT (the “Agreement”), made as of [●], by and between Castle Brands Inc., with its principal office
at 122 East 42nd Street, Suite 5000, New York, New York 10168 (the “Company”), and [●] (the “Participant”).

 

WHEREAS,
the Board of Directors of the Company (the “Board”) adopted the Castle Brands Inc. 2013 Incentive Compensation
Plan on August 24, 2012 (approved by the shareholders of the Company on October 15, 2012) (as such plan may be amended from time
to time, the “Plan”);

 

WHEREAS,
the Plan provides that the Company, through the Compensation Committee of the Board (the “Committee”), has
the ability to grant awards of restricted stock to officers, directors, employees, consultants and other persons who provide services
to the Company or any Related Entities; and

 

WHEREAS, subject to the
terms and conditions of this Agreement and the Plan, the Committee has determined that Participant, a [●], shall be awarded
shares of Restricted Stock in the amount set forth below and subject to the terms, conditions and restrictions set forth herein.

 

NOW,
THEREFORE, the Company and the Participant each agree as follows:

 

1.
Grant of Restricted Stock. Subject to the terms, conditions and restrictions of the Plan and this Agreement, the
Company hereby grants to the Participant [●] shares of Restricted Stock of the Company (the “Restricted Shares”)
effective as of the date hereof (the “Grant Date”). For the avoidance of doubt, the Participant is receiving
the Restricted Shares at the five-day volume weighted average price as of [●] of $[●] and on the same terms as were
approved by the Committee on such date, and, accordingly, the Participant shall be entitled to all rights of a holder of shares
of common stock, par value $.01 per share, of the Company (“Common Stock”) set forth in Section 4 hereof
as of the Grant Date. To the extent required by applicable law, the Participant shall pay to the Company the par value ($.01)
for each Restricted Share awarded to the Participant simultaneously with the execution of this Agreement in cash or cash equivalents
payable to the order of the Company. Pursuant to the Plan and Section 2 of this Agreement, the Restricted Shares are subject
to certain restrictions, some of which shall expire in accordance with the provisions of the Plan and Section 2 hereof.
Unless otherwise provided herein, terms used herein that are defined in the Plan and not defined herein shall have the meanings
attributable thereto in the Plan.

 

    	 	 	 

     

    

 

2.
Vesting. (a) Except as otherwise provided in Sections 2(b) and 3 hereof, the Restricted Shares shall
become vested in the following percentages and at the following times, provided that the Continuous Service of the Participant
continues through and on the applicable Vesting Date:

 

	Percentage of Restricted Shares	 	Vesting Date
	[●]%

	 	[●]

 

There
shall be no proportionate or partial vesting of the Restricted Shares in or during the months, days or periods prior to each Vesting
Date, and all vesting of the Restricted Shares shall occur only on the applicable Vesting Date. Upon the termination or cessation
of the Participant’s Continuous Service, other than a Without Cause Termination or a Good Reason Termination, any portion
of the Restricted Shares which is not yet then vested shall automatically and without notice terminate, be forfeited and be and
become null and void except as otherwise provided herein.

 

(b)
Notwithstanding any other term or provision of this Agreement, in the event that an Acceleration Event (as defined below) occurs,
the Restricted Shares subject to this Agreement shall become immediately fully vested as of the date of the Acceleration Event.
For purposes of this Agreement, an “Acceleration Event” shall mean the first to occur of any of the following: (i)
a Change in Control (as defined below) provided that the Participant’s Continuous Service with the Company and its Related
Entities continues through and on the date of such Change in Control; (ii) the Participant’s Continuous Service with the
Company and its Related Entities terminates through either a Without Cause Termination or a Good Reason Termination (as such quoted
terms are defined below); or (iii) the Participant’s Continuous Service with the Company and its Related Entities terminates
as a result of the Participant’s death or disability.

 

(c)
For purposes of this Agreement, “Change in Control” means the occurrence of one of the following events: (i)
consummation of a reorganization, merger or consolidation, sale, disposition of all or substantially all of the assets or stock
of the Company or any other similar corporate event (a “Business Combination”), in each case, unless, following such
Business Combination, all or substantially all of the individuals or entities who were the beneficial owners, respectively, of
the voting securities of the Company entitled to vote generally in the election of directors immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding voting securities entitled
to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination
(including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all
of the Company’s assets either directly or through one or more subsidiaries); or (ii) Board approval of a complete dissolution
or liquidation of the Company; or (iii) any “person” (as such term is defined in Section 3(a)(9) of the Securities
Exchange Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), other
than Dr. Phillip Frost, any member of his immediate family, and any “person” or “group” (as used in Section
13(d)(3) of the Exchange Act) that is controlled by Dr. Frost or any member of his immediate family, any beneficiary of the estate
of Dr. Frost, or any trust, partnership, corporation or other entity controlled by any of the foregoing, is or becomes, after
the date hereof, a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 35% or more of the combined voting power of the Company’s then outstanding securities
eligible to vote for the election of the board of directors of the Company.

 

    	 	 2	 

     

    

 

(d)
For purposes of this Agreement, (i) a “Without Cause Termination” shall mean a termination of the Participant’s
employment by the Company or a subsidiary thereof other than for Cause (as defined below) or as a result of the Participant’s
death or disability, (ii) a “Good Reason Termination” shall mean a termination of the Participant’s employment
by the Participant for “good reason” pursuant to and in accordance with the Participant’s written employment
agreement with the Company or a subsidiary thereof (if any) on the date hereof, and (iii) “Cause” shall mean
the Participant’s (i) having committed in the performance of his or her duties, one or more acts or omissions constituting
fraud, dishonesty, or willful injury to the Company which results in a material adverse effect on the business, financial condition
or results of operations of the Company, (ii) having committed one or more acts constituting gross neglect or willful misconduct
which results in a material adverse effect on the business, financial condition or results of operations of the Company, (iii)
breach of fiduciary duty, (iv) failure to substantially perform assigned duties relating to such Participant’s performance
under the terms of his or her employment agreement, if any (other than any such failure owing to Participant becoming disabled),
as reasonably determined by a majority of the entire Compensation Committee of the Board of Directors of the Company, after consultation
with the Chief Executive Officer of the Company, (v) conviction of, or the entry by the Participant of any plea of guilty or nolo
contendere to, any felony, or (vi) material breach of any provision of the Participant’s employment agreement, if any, as
reasonably determined by the Compensation Committee of the Board of Directors of the Company, after consultation with the Chief
Executive Officer; provided, however, that in any of the foregoing circumstances, Participant has failed to cure such Cause, to
the extent curable, within a thirty (30) day notice period.

 

3.
Forfeiture. If the Participant’s Continuous Service with the Company and the Related Entities is terminated
for any reason other than a Without Cause Termination or a Good Reason Termination, the Participant shall automatically forfeit
any unvested Restricted Shares and the Company shall acquire such unvested Restricted Shares for the amount paid by the Participant
for such Restricted Shares (or, if no amount was paid by the Participant for such Restricted Shares, then the Company shall acquire
such Restricted Shares for no consideration). The Committee shall have the power and authority to enforce on behalf of the Company
any rights of the Company under this Agreement in the event of the Participant’s forfeiture of the Restricted Shares pursuant
to this Section 3.

 

4.
Rights as a Holder of Restricted Shares. From and after the Grant Date, the Participant shall have, with respect
to the Restricted Shares (whether vested or unvested), all of the rights of a holder of shares of Common Stock of the Company,
including, without limitation, the right to vote the shares, to receive and retain all regular cash dividends payable to holders
of shares of record on and after the Grant Date (although such dividends will be treated, to the extent required by applicable
law, as additional compensation for tax purposes), and to exercise all other rights, powers and privileges of a holder of shares
with respect to the Restricted Shares; provided, that, to the extent the Company issues a dividend in the form of shares
or other property, such shares or other property shall be subject to the same restrictions that are then applicable to the Restricted
Shares under the Plan and this Agreement and such restrictions shall expire at the same time as the restrictions on the Restricted
Shares expire. Participant shall not be required to repay any dividends received with respect to Restricted Shares that are subsequently
forfeited prior to vesting.

 

    	 	 3	 

     

    

 

5.
Taxes; Section 83(b) Election. The Participant acknowledges that (i) no later than the earlier of (x) the date on
which any Restricted Shares shall have become vested or (y) the date on which the Participant makes a Section 83(b) election (if
he or she so chooses to make such an election), the Participant shall pay to the Company, or make arrangements satisfactory to
the Company regarding payment of, any Federal, state or local or other taxes of any kind required by law to be withheld with respect
to any Restricted Shares which shall have become so vested; (ii) the Company shall, to the extent permitted by law, have the right
to deduct from any payment of any kind otherwise due to the Participant any Federal, state or local or other taxes of any kind
required by law to be withheld with respect to any Restricted Shares which shall have become so vested, including that the Company
may, but shall not be required to, sell a number of Restricted Shares sufficient to cover applicable withholding taxes; and (iii)
in the event that the Participant does not satisfy (i) above on a timely basis, the Company may, but shall not be required to,
pay such required withholding and, to the extent permitted by applicable law, treat such amount as a demand loan to the Participant
at the maximum rate permitted by law, with such loan, at the Company’s sole discretion and provided the Company so notifies
the Participant within thirty (30) days of the making of the loan, secured by the Restricted Shares and any failure by the Participant
to pay the loan upon demand shall entitle the Company to all of the rights at law of a creditor secured by the Restricted Shares.
The Company may hold as security any certificates representing any Restricted Shares and, upon demand of the Company, the Participant
shall deliver to the Company any certificates in his or her possession representing the Restricted Shares together with a stock
power duly endorsed in blank. The Participant also acknowledges that it is his or her sole responsibility, and not the Company’s,
to file timely and properly any election under Section 83(b) of the Code, and any corresponding provisions of state tax laws,
if the Participant wishes to utilize such election.

 

6.
No Obligation to Continue Employment. This Agreement is not an agreement of employment. Neither the execution of
this Agreement nor the issuance of the Restricted Shares hereunder constitute an agreement by the Company or any Related Entity
thereof to employ or to continue to employ the Participant during the entire, or any portion of, the term of this Agreement, including
but not limited to any period during which any Restricted Shares are outstanding.

 

    	 	 4	 

     

    

 

7.
Legend. In the event that a certificate evidencing the Restricted Shares is issued, the certificate representing
the Restricted Shares shall have endorsed thereon the following legends:

 

(a)
“THE ANTICIPATION, ALIENATION, ATTACHMENT, SALE, TRANSFER, ASSIGNMENT, PLEDGE, ENCUMBRANCE OR CHARGE OF THE SHARES OF STOCK
REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE CASTLE BRANDS INC. (THE “COMPANY”)
2013 INCENTIVE COMPENSATION PLAN ADOPTED BY THE COMPANY’S BOARD OF DIRECTORS ON AUGUST 24, 2012 (APPROVED BY THE SHAREHOLDERS
OF THE COMPANY ON OCTOBER 15, 2012) (AS SUCH PLAN MAY BE AMENDED FROM TIME TO TIME, THE “PLAN”) AND AN AGREEMENT ENTERED
INTO BETWEEN THE REGISTERED OWNER AND THE COMPANY DATED AS OF [●]. COPIES OF SUCH PLAN AND AGREEMENT ARE ON FILE AT THE PRINCIPAL
OFFICE OF THE COMPANY.”

 

(b)
Any legend required to be placed thereon by applicable blue sky laws of any state. Notwithstanding the foregoing, in no event
shall the Company be obligated to issue a certificate representing the Restricted Shares prior to vesting as set forth in Section
2 hereof.

 

8.
Power of Attorney. The Company, its successors and assigns, is hereby appointed the attorney-in-fact, with full
power of substitution, of the Participant for the purpose of carrying out the provisions of this Agreement and taking any action
and executing any instruments which such attorney-in-fact may deem necessary or advisable to accomplish the purposes hereof, which
appointment as attorney-in-fact is irrevocable and coupled with an interest. The Company, as attorney-in-fact for the Participant,
may in the name and stead of the Participant, make and execute all conveyances, assignments and transfers of the Restricted Shares
provided for herein, and the Participant hereby ratifies and confirms that which the Company, as said attorney-in-fact, shall
do by virtue hereof. Nevertheless, the Participant shall, if so requested by the Company, execute and deliver to the Company all
such instruments as may, in the judgment of the Company, be advisable for this purpose.

 

9.
Transferability. Unless otherwise determined by the Committee, the Restricted Shares shall not be subject to a Transfer
(as defined below), otherwise than by will or under the applicable laws of descent and distribution, unless and until the shares
become vested under Section 2 hereof. The terms of this Agreement shall be binding upon the executors, administrators,
heirs, successors and assigns of the Participant. Except as otherwise permitted pursuant to the first sentence of this Section
9, any attempt to effect a Transfer of any Restricted Shares shall be void ab initio. For purposes of this Agreement,
“Transfer” shall mean any sale, transfer, encumbrance, gift, donation, assignment, pledge, hypothecation, or
other disposition, whether similar or dissimilar to those previously enumerated, whether voluntary or involuntary, and including,
but not limited to, any disposition by operation of law, by court order, by judicial process, or by foreclosure, levy or attachment.

 

10.
Miscellaneous.

 

(a)
This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, personal legal
representatives, successors, trustees, administrators, distributes, devisees and legatees. The Company may assign to, and require,
any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to expressly assume and agree in writing to perform this Agreement. Notwithstanding the
foregoing, the Participant may not assign this Agreement or any of the Participant’s rights, interest or obligations hereunder.

 

    	 	 5	 

     

    

 

(b)
This award of Restricted Shares shall not affect in any way the right or power of the Board or stockholders of the Company to
make or authorize an adjustment, recapitalization or other change in the capital structure or the business of the Company, any
merger or consolidation of the Company or subsidiaries, any issue of bonds, debentures, preferred or prior preference stock ahead
of or affecting the Restricted Shares, the dissolution or liquidation of the Company, any sale or transfer of all or part of its
assets or business or any other corporate act or proceeding.

 

(c)
The Participant agrees that the award of the Restricted Shares hereunder is special incentive compensation and that it and any
dividends paid thereon (even if treated as compensation for tax purposes) will not be taken into account as “salary”
or “compensation” or “bonus” in determining the amount of any payment under any pension, retirement or
profit-sharing plan of the Company or any subsidiary thereof or any life insurance, disability or other benefit plan of the Company
or any subsidiary thereof.

 

(d)
No modification or waiver of any of the provisions of this Agreement shall be effective unless in writing and signed by the party
against whom it is sought to be enforced.

 

(e)
This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one contract.

 

(f)
The failure of any party hereto at any time to require performance by another party of any provision of this Agreement shall not
affect the right of such party to require performance of that provision, and any waiver by any party of any breach of any provision
of this Agreement shall not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the
provision itself, or a waiver of any right under this Agreement.

 

(g)
The headings of the sections of this Agreement have been inserted for convenience of reference only and shall in no way restrict
or modify any of the terms or provisions hereof.

 

(h)
All notices, consents, requests, approvals, instructions and other communications provided for herein shall be in writing and
validly given or made when delivered, or on the second succeeding business day after being mailed by registered or certified mail,
whichever is earlier, to the persons entitled or required to receive the same, at the addresses set forth at the heading of this
Agreement or to such other address as either party may designate by like notice. Notices to the Company shall be addressed to
Castle Brands Inc. at 122 East 42nd Street, Suite 5000, New York, New York, 10168, Attn: Chief Financial Officer.

 

    	 	 6	 

     

    

 

(i)
This Agreement shall be construed, interpreted and governed and the legal relationships of the parties determined in accordance
with the internal laws of the State of New York without reference to rules relating to conflicts of law.

 

(j)
Notwithstanding anything to the contrary herein, in the event of any conflict between the terms hereof and the Participant’s
employment agreement, if any, the terms of the Participant’s employment agreement shall govern.

 

11.
Provisions of Plan Control. This Agreement is subject to all the terms, conditions and provisions of the Plan, including,
without limitation, the amendment provisions thereof, and to such rules, regulations and interpretations relating to the Plan
as may be adopted thereunder and as may be in effect from time to time. The Plan is incorporated herein by reference. A copy of
the Plan has been delivered to the Participant. If and to the extent that this Agreement conflicts or is inconsistent with the
terms, conditions and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly.
This Agreement contains the entire understanding of the parties with respect to the subject matter hereof (other than any other
documents expressly contemplated herein or in the Plan) and supersedes any prior agreements between the Company and the Participant.

 

[signature
page(s) follow]

 

    	 	 7	 

     

    

 

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

 

	 	CASTLE
    BRANDS INC.
	 	 
	 	By:	
	 	Name:	
	 	Title:	

 

Participant:

 

	 	 
	 	 
	Address
    of Participant:	 

 

    	 	 8

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