Document:

TMUS 10/25/2013 EX 10.1

T-MOBILE US, INC.

EXECUTIVE CONTINUITY PLAN

(As Amended and Restated Effective as of January 1, 2014)

TABLE OF CONTENTS

	
		
	 
	Page

	Article 1. Purpose
	1

	Article 2. Definitions
	1

	Article 3. Eligibility for Executive Continuity Benefits
	3

	Article 4. Change in Control Benefits
	3

	Article 5. Conditions and Limitations on Payment of Benefits
	3

	Article 6. Tax Cap/Golden Parachute
	3

	Article 7. Funding Policy and Method
	4

	Article 8. Employment Status; Withholding
	4

	Article 9. Successors to Company
	4

	Article 10. Duration, Amendment and Termination
	4

	Article 11. Notice and Claims
	4

	Article 12. Administration of Plan
	5

	Article 13. ERISA Rights
	6

	Article 14. Miscellaneous Provisions
	7

	APPENDIX A- Agreement Regarding Executive Continuity Benefits
	 

	APPENDIX B- General Release
	 

T-MOBILE US, INC.
EXECUTIVE CONTINUITY PLAN
As Amended and Restated Effective as of January 1, 2014  

 Article 1.   Purpose

The Compensation Committee of T-Mobile US, Inc. has approved this amended and restated  Executive Continuity Plan effective as of January 1, 2014 for certain employees of the Company and Affiliates with whom T-Mobile US, Inc. enters into Agreements Regarding Executive Continuity Benefits.  The Executive Continuity Benefits are intended as a vehicle to help retain, incent and focus highly qualified executives.  

  Article 2.  Definitions
Whenever used in connection with this Plan, the following terms shall have the meanings set forth below.
2.1      Affiliate  means any company or other trade or business that “controls,” is “controlled by” or is “under common control” with the Company within the meaning of Rule 405 of Regulation C under the Securities Act of 1933, including, without limitation, any Subsidiary.  
2.3     Agreement Regarding Executive Continuity Benefits means an agreement between a Participant and T-Mobile US, Inc., substantially in the form attached as APPENDIX A, which provides for benefits under this Plan.
2.4     Annual Plan means the Company’s Annual Short-Term Incentive Plan for any calendar year (specifically excluding any other incentive plans, including but not limited to the 2011 Long-Term Incentive Plan, and any other bonus plan established by T-Mobile US, Inc. under which Participant is eligible for bonuses).  
2.5     Base Salary means the greater of (1) Participant’s annual base salary immediately prior to the termination of Participant by the Company and Affiliates, or their respective Successors or (2) Participant’s annual base salary immediately prior to a Change in Control.
2.6     Board means the Board of Directors of T-Mobile US, Inc.
2.7     Cause means any one or more of the following:  (i) Participant’s gross neglect or willful material breach of Participant’s principal employment responsibilities or duties, (ii) a final judicial adjudication that Participant is guilty of any felony (other than a law, rule or regulation relating to a traffic violation or other similar offense that has no material adverse affect on the Company or any of its Affiliates), (iii) Participant’s breach of any non-competition or confidentiality covenant between Participant and the Company or any Affiliate of the Company, (iv) fraudulent conduct as determined by a court of competent jurisdiction in the course of Participant’s employment with the Company or any of its Affiliates, (v) the material breach by Participant of any other obligation which continues uncured for a period of thirty (30) days after notice thereof by the Company or any of its Affiliates and which is demonstrably injurious to the Company or Affiliate.
2.8     Change in Control is defined as that term is defined in the Omnibus Incentive Plan.
2.9     Code means the Internal Revenue Code of 1986, as amended.
2.10    Company means T-Mobile US, Inc.
2.11    Compensation Committee means the compensation committee of the Board, as appointed by the Board.
2.12     Constructive Termination or Good Reason means the occurrence, after a Change in Control, of a “Constructive Termination” or “Good Reason” condition as defined in the Participant’s offer letter or other applicable employment agreement; or, if there is no such definition, “Constructive Termination” or “Good Reason” means the occurrence, after a Change in Control, of any of the following conditions about which the Participant notifies the Company within not more than 90 days after initial existence and which the Company does not cure within 30 days of such notice:  (i) a material diminution in the Participant’s duties,  authority or responsibilities; (ii) a material reduction in the Participant’s Base Salary, target short-term incentive, or target long-term incentive opportunity as in effect immediately prior to the Change in Control, except for across-

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the-board salary reductions based on the Company and Subsidiaries’ financial performance similarly affecting all or substantially all management employees of the Company and its Subsidiaries; (iii) a material reduction in the kind or level of qualified retirement and welfare employee benefits from the like kind benefits to which the Participant was entitled immediately prior to a Change in Control with the result that the Participant’s overall benefits package is materially reduced without similar action occurring to other eligible comparably situated employees; (iv) the relocation of the office at which the Participant was principally employed immediately prior to a Change in Control to a location more than fifty (50) miles from the location of such office, or the Participant being required to be based anywhere other than such office, except to the extent the Participant was not previously assigned to a principal location and except for required travel on business to an extent substantially consistent with the Participant’s business travel obligations at the time of the Change in Control; or (v) such other event, if any, as is set forth in a Participant’s Agreement Regarding Executive Continuity Benefits.  
2.13     ERISA means the Employee Retirement Income Security Act of 1974, as amended.
2.14     Executive Continuity Benefits mean the benefits under Sections 4.1 of the Plan. 
2.15     Omnibus Incentive Plan means the T-Mobile US, Inc. 2013 Omnibus Incentive Plan as may be amended or any successor plan.
2.16     Participant means an employee of the Company or Affiliate who (1) is eligible under Article 3, (2) has entered into an Agreement Regarding Executive Continuity Benefits with the Company and (3) is employed as a Vice President or above with the Company or Affiliate within 120 days before a Change in Control.
2.17     Plan means this T-Mobile US, Inc. Executive Continuity Plan, as amended and restated effective January 1, 2014, and subsequently amended from time to time.
2.18     Plan Administrator means the Board or the Compensation Committee or their designee, as the Board shall determine.
2.19     Protection Period means (i) the twenty-four (24) month period after a Change in Control in the case of a Participant who is an Executive Vice President or above (i.e., Level 1 or Level 2 employee) as of the Change in Control or (ii) the twelve (12) month period after a Change in Control in the case of a Participant who is a Vice President or Senior Vice President (i.e., Level 3 or Level 4 employee) as of the Change in Control.  Notwithstanding the foregoing to the contrary, in no event will the Protection Period for a Participant be less than 12 months.
2.20     Release Agreement means a general waiver, release and agreement substantially in the form of the General Release attached hereto as APPENDIX B. 
2.21     Severance Payment Multiplier means the factor that will be used to determine a Participant’s Executive Continuity Benefits under Section 4.1, which is based on the title held by the Participant as of the date of the Change in Control.  The multiplier for Participants under this Plan who are Executive Vice Presidents or above (i.e., Level 1 and Level 2 employees) is 2.  The multiplier for Vice Presidents and Senior Vice Presidents (i.e., Level 3 and Level 4 employees) is 1.  Notwithstanding any of the forgoing to contrary, in no event will the multiplier for a Participant be less than 1.
2.22     Subsidiary means as defined in the Omnibus Incentive Plan.  
2.23     Successor means the entity that is the survivor upon a Change in Control or otherwise becomes bound to the obligations of the Company or Affiliate by operation of law.
2.24     Target Percentage means the percentage of Base Salary used to establish the Participant’s total award potential under the Annual Plan, as though the Company (or Affiliate) and the Participant achieve their respective target performance objectives established under the applicable Annual Plan.
2.25     Termination Date means the date on which the Participant’s employment with the Company and its Affiliates ceases. 
2.26     Transaction Agreement means a definitive written agreement that commits the signatories to a Change in Control involving the Company, pursuant to which the Change in Control contemplated in the Transaction Agreement actually occurs (including such agreements that contain conditions precedent to closing, but not including non-binding letters of intent or other similar non-binding expressions of interest).  

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  Article 3.  Eligibility for Executive Continuity Benefits
Only those employees of the Company and Affiliates selected by the Plan Administrator, in its sole and absolute discretion, shall be Participants in this Plan.  An Agreement Regarding Executive Continuity Benefits must be executed by an authorized signatory of T-Mobile US, Inc. and duly delivered to and executed by the Participant prior to the Company entering into the Transaction Agreement relating to the Change in Control or on such later date as is approved by the Plan Administrator.  A Participant in this Plan may become entitled to Executive Continuity Benefits hereunder only in accordance with Article 4 of this Plan.  Participants who move to a position below the Vice President level more than 120 days before a Change in Control will no longer be eligible under this Plan. 
Article 4.  Change in Control Benefits
4.1     Involuntary Termination Without Cause and Constructive Termination. If the Participant’s employment with the Company and Affiliates is terminated within the applicable Protection Period, and such termination is (i) by the Company and Affiliates without Cause, or (ii) by the Participant as a result of a Constructive Termination, the Participant shall be entitled to receive a severance payment equal to the sum of:
(a)     The Participant’s Severance Payment Multiplier multiplied by the Participant’s Base Salary; plus
(b)     The Participant’s Severance Payment Multiplier multiplied by the greater of: (1) Participant’s Target Percentage under the applicable Annual Plan at the time of termination of such Participant or (2) Participant’s Target Percentage under the applicable Annual Plan immediately prior to the Change in Control. 
If the Participant delivers a signed Release Agreement and the revocation period has lapsed, the severance payment shall be paid to the Participant in a single lump sum cash payment within sixty (60) calendar days after the Participant’s Termination Date; provided however, if the 60-day period covers two taxable years, it will be paid in the later taxable year.

  Article 5.     Conditions and Limitations on Payment of Benefits
5.1     Release Agreement.  In order for the Participant to receive Executive Continuity Benefits under Section 4.1, the Participant (or, if the Participant is disabled or deceased, its estate, guardian or representative) must execute and deliver a Release Agreement to Successor prior to and as a condition to receiving payments pursuant to this Plan. 
5.2    Other Benefits.  The Company may maintain other severance plans or may have entered into or enter into in the future other agreements with certain employees which contain severance provisions or other rights (collectively “Other Severance Arrangements”).  The Severance Payments pursuant to Section 4.1 hereof shall be reduced by any cash severance payments otherwise required to be provided to the Participant in connection with Participant’s termination of employment pursuant to such Other Severance Arrangements, provided however, that for purposes of this Section 5.2, any severance provisions or other rights or payments to which Participant may be eligible under the Omnibus Incentive Plan and 2011 Long-Term Incentive Plan, as amended, shall not be interpreted as Other Severance Arrangements and any Severance Payments made pursuant to Section 4.1 shall not be reduced by any  cash severance payments under the Omnibus Incentive Plan and 2011 Long-Term Incentive Plan.  Furthermore, the Severance Payments pursuant to Section 4.1 shall not be reduced by payments under any other long term incentive plan or bonus plan.  
5.3     No Benefits on Other Termination. If (a) the Participant voluntarily terminates employment with the Company and Affiliates (other than in a Constructive Termination), (b) the Company and Affiliates terminate the Participant’s employment for Cause, or (c) the Participant’s employment with the Company and Affiliates terminates by reason of his or her disability or death, then the Participant shall not be entitled to receive Executive Continuity Benefits pursuant to this Plan; provided, however that in the event that the Participant’s employment terminates by reason of his or her disability or death which occurs after (i) the Change in Control occurs and (ii) the Participant has been informed in writing that he or she will be terminated (other than for Cause), such Participant or the Participant’s estate shall be entitled to the benefits set forth in Section 4.1 above.

  Article 6.     Tax Cap/Golden Parachute
In the event any Executive Continuity Benefit payable to a Participant hereunder constitutes a “parachute payment” under Section 280G of the Code, the Participant’s benefits under Article 4 shall be either:

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	(i)
	delivered in full, or

		
	(ii)
	delivered to such lesser extent as would result in no portion of such benefits being subject to the excise tax under Section 4999 of the Code, 

whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax under Section 4999 of the Code, results in the receipt by Participant on an after-tax basis, of the greater net value, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.  Unless the Company and the Participant otherwise agree in writing, all determinations required to be made under this Article 6, including the manner and amount of any reduction in the Participant’s benefits under Article 4, and the assumptions to be utilized in arriving at such determinations, shall be made in writing in good faith by the accounting firm serving as the Company’s independent public accounting firm immediately prior to the event giving rise to such payment (the “Accounting Firm”).  
For purposes of making the calculations required by this Article 6, the Accounting Firm may make reasonable assumptions and approximations concerning the application of Sections 280G and 4999 of the Code.  The Company and the Participant shall furnish to the Accounting Firm such information and documents as the Accounting Firm may reasonably request to make a determination under this Article.  The Accounting Firm shall provide its written report to the Company and the Participant and shall include information regarding methodology.  The Company shall bear all costs the Accounting Firm may reasonably incur in connection with any calculations contemplated by this Article 6.  
Article 7.  Funding Policy and Method
Benefits and any administrative expenses arising in connection with this Plan shall be paid as needed solely from the general assets of the Company.  No contributions are required from any Participant.  This Plan shall not be construed to require the Company to fund any of the benefits provided hereunder nor to establish a trust for such purpose.  Participants’ rights against the Company with respect to severance and other benefits provided under this Plan shall be those of general unsecured creditors.
  Article 8.  Employment Status; Withholding
8.1     Employment Status.  This Plan and the Agreement Regarding Executive Continuity Benefits do not constitute a contract of employment or impose on the Company and Affiliates any obligation to retain the Participant as an employee, to change the status of the Participant’s employment, or to change the Company or Affiliate’s policies regarding termination of employment.  Unless the Participant has a written and duly executed employment agreement with the Company or Affiliate that indicates otherwise, the Participant’s employment is and shall continue to be “at-will,” as defined under applicable law.  
8.2     Withholding Taxes.  Payments hereunder are subject to all applicable taxes and withholding.
 Article 9.   Successors to Company
As part of any Change in Control, Successor shall be obligated and, as a condition of closing, caused to assume the obligations under this Plan and to perform the obligations hereunder which assumption shall be evidenced by an agreement in writing.
  Article 10.    Duration, Amendment and Termination
The Plan Administrator has the discretionary authority to terminate this Plan or to amend this Plan in any respect (subject to the limitations set forth below), in which event the Company shall give written notice to the Participant within forty-five (45) days after the Plan Administrator’s action; provided, however, that, within the applicable Protection Period, no termination or amendment of the Plan that negatively affects the rights or benefits of such Participant shall be effective, and the Participant may not be disqualified, without such Participant’s consent thereto.  Notwithstanding the foregoing, no addition, amendment, modification, repeal, termination, or suspension of this Plan shall adversely affect, in any way, the rights or benefits of any employee who has become a Participant under the Plan prior to the date such addition, amendment, modification, repeal, termination or suspension occurs. 
  Article 11.   Notice and Claims    
11.1     General.  Notices and all other communications contemplated under this Plan shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid.  In the case of the Participant, mailed notices shall be addressed to him or her at the home address that he or she most recently communicated to the Company in writing.  In the case of the Company, mailed notices 

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shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Executive Vice President & General Counsel.  The address of the Company is currently as follows:
T-Mobile US, Inc.
Attn:  Executive Vice President & General Counsel 
12920 SE 38th St.
Bellevue, WA  98006

11.2     Claims.  All claims for benefits by the Participant must be made by notice in writing to the Company’s Successor.  In the event any claim for benefits by the Participant is denied, in whole or in part, the Company shall notify the Participant of such denial in writing.  Such written notice shall set forth the specific reasons for the denial and shall be given to the claimant within forty-five (45) days after the Company’s Successor  receives his or her written claim for Executive Continuity Benefits.
11.3     Notice by the Participant of Constructive Termination by the Company’s Successor.  In the event that a Participant believes he or she has suffered Constructive Termination after a Change of Control, the Participant shall give written notice to the Successor that such Constructive Termination has occurred.  The Participant shall give such notice no later than sixty (60) days following the date on which Participant has actual knowledge that such Constructive Termination occurred (i.e., within 60 days that the Company fails to cure the Constructive Termination condition the Participant asserted).  The notice shall provide the specific provision or provisions in this Plan upon which the Participant relied in making his or her claim; and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for such claim.  The failure by the Participant to include in the notice any fact or circumstance that contributes to a showing of Constructive Termination shall not waive any right of the Participant hereunder or preclude the Participant from asserting such fact or circumstance in enforcing his or her rights hereunder.  The Successor must respond in writing within forty-five (45) days after the Participant’s notice is given, either (i) agreeing with Participant’s claim of Constructive Termination, or (ii) indicating the specific reason or reasons for its denial of Participant’s claim under this Plan.  In the event the Successor denies the Participant's claim under the Plan, the Participant shall have the right to either (i) continue his or her employment and pursue his or her claim for benefits under the Plan by reason of Constructive Termination pursuant to appeal rights under Section 12.3 and arbitration conducted in accordance with Section 11.4 (i), provided that such arbitration shall be commenced by the Participant within fifteen (15) days of the Successor’s denial of the final appeal pursuant to Section 12.3 below and must be completed within sixty (60) days of its commencement or (ii) terminate his or her employment and pursue Participant's claim for benefits under the Plan by reason of Constructive Termination pursuant to appeal rights under Section 12.3, and then either to arbitration conducted in accordance with Section 11.4 (i) or in a court of competent jurisdiction pursuant to Section 11.4 (ii). 
11.4     Participant’s Remedies; Venue.  In the event of any dispute or controversy between the Participant and the Company with respect to Executive Continuity Benefits, the Participant may elect (i) by written notice to the Company to have such dispute or controversy submitted to final and binding arbitration in King County, Seattle, Washington; or (ii) to pursue his or her remedies at law or in equity in an action or proceeding in a court of competent jurisdiction.  If the Participant elects arbitration, such arbitration shall be conducted in accordance with the commercial arbitration rules of the American Arbitration Association (the "AAA") then in effect; provided arbitration shall commence within fifteen (15) days after Participant's written notice of election and shall be completed within sixty (60) days after its commencement.  Venue for action in court shall be exclusively in King County, Washington.  The election made by the Participant under this Section 11.4 shall be the sole and exclusive remedy of the parties for any dispute or controversy arising under this Plan.  
11.5     Attorneys' Fees and Costs.  In the event that a dispute regarding benefits arises between the Company or Plan Administrator and the Participant or, in the case of the Participant's death, his or her beneficiary or estate, and such dispute is resolved through arbitration or litigation in court, the Arbitrator or court shall have the right to direct that all or a portion of the prevailing party’s reasonable attorneys' fees and costs incurred in such action be paid by the other party.
  Article 12.  Administration of Plan
12. 1     Administrative Procedures.  The Plan Administrator, in accordance with the terms and intent of the Plan, shall administer the Plan and shall have full discretionary authority to interpret, construe and apply its provision and to make determinations as to the Participant's rights to participate in the Plan and the timing and amount of benefits, if any, owed to the Participant (or, in the case of the Participant's death, his or her beneficiary or estate).  The Plan Administrator, in accordance with the terms and intent of the Plan, shall further adopt such rules and regulations, as it may deem necessary or advisable for the administration of the Plan.    

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12. 2     Benefit Determinations.  Within forty-five (45) days following the Participant's termination from the Company, the Plan Administrator or its designee shall notify Participant of his or her eligibility or non-eligibility for benefits under the Plan.  If the Plan Administrator determines that the Participant is not eligible for benefits, the notice shall set forth:  (i) the specific reasons for such denial; (ii) a specific reference to the provisions of the Plan on which the denial is based; (iii) a description of any additional information or material necessary for the Participant to perfect his or her claim, and a description of why it is needed; and (iv) an explanation of the Plan's claims review procedure and other appropriate information as to the steps to be taken if the Participant wishes to have the claim reviewed.      
12.3    Appeal.  If the Plan Administrator determines that the Participant is not eligible for benefits, or if the Participant believes that he or she is entitled to greater or different benefits, the Participant shall have the opportunity to have such claim reviewed by the Plan Administrator by filing a petition for review with the Plan Administrator within sixty (60) days after receipt of the benefit determination notice issued by the Plan Administrator.  Participant's petition shall state the specific reasons that the Participant believes entitle him or her to benefits or to greater or different benefits.  The Plan Administrator shall promptly, but not later than forty-five (45) days after receipt of the petition, notify the Participant in writing of its decision on the appeal. Such notice shall be written in a manner calculated to be understood by the Participant, and shall state specifically the basis of the Plan Administrator's decision and the specific provisions of the Plan on which the decision is based.  The Plan Administrator's decision on appeal shall be a final administrative determination on the claim.  Should the Participant remain dissatisfied with the Plan Administrator's determination, Participant shall have the right to seek resolution of the dispute pursuant to the provisions of Section 11.4 hereof.
Article 13.  ERISA Rights
Participants in the Plan are entitled to certain rights and protections under ERISA.  ERISA provides that all Participants shall be entitled to:
13.1     Receive Information About Your Plan and Benefits.  Examine, without charge, at the Plan Administrator's office and at other specified locations, such as worksites, all documents governing the Plan, including insurance contracts, and copies of all documents filed by the Plan with the U.S. Department of Labor, such as detailed annual reports and plan descriptions.  Obtain copies of all documents governing the operation of the Plan and other Plan information upon written request to the Plan Administrator.  The Plan Administrator may make a reasonable charge for the copies.
13. 2    Prudent Action by Plan Fiduciaries.  In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan.  The people who operate the Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of Participants and their beneficiaries.  No one, including the Company, may fire or otherwise discriminate against a Participant in any way to prevent him or her from obtaining a benefit under this Plan or exercising his or her rights under ERISA.  
13.3     Enforce Participant Rights.  Under ERISA, there are steps a Participant can take to enforce his or her rights under the Plan.  For instance, if a Participant requests materials from the Plan and does not receive them within 30 days, the Participant may file suit in a federal court.  In such a case, the court may require the Plan Administrator to provide the materials and pay the Participant up to $110 a day until the Participant receives the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.  If a Participant has a claim for benefits that is denied or ignored, in whole or in part, the Participant has a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.  In addition, the Participant may file suit in a state or federal court.  If a Participant is discriminated against for asserting his or her rights under the Plan, Participant may seek assistance from the U.S. Department of Labor, or may file suit in a federal court.  The court will decide who should pay court costs and legal fees.  If the Participant loses, the court may order the Participant to pay these costs and fees, for example, if it finds that the claim was frivolous.
13.4    Assistance With Questions About Plan Benefits.  If Participants have any questions about this Plan, they should contact the Plan Administrator. If Participants have any questions about this statement or about their rights under ERISA, or they need assistance in obtaining documents from the Plan Administrator, they should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in the telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.  A Participant may also obtain certain publications about his or her rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.  

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  Article 14.    Miscellaneous Provisions
14.1     Severability.  The invalidity or unenforceability of any provision or provisions of this Plan shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.
14.2    No Assignment of Benefits.  The rights of any person to payments or benefits under this Plan shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law (except as set forth in Section 14.3), including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this Section 14.2 shall be void.
14.3    Payment to Estate, Guardian or Fiduciary.  The Executive Continuity Benefits payable to a Participant pursuant to this Plan, if the Participant subsequently dies or becomes disabled before payment is completed shall be payable to the Participant’s estate or to his or her guardian or other fiduciary, respectively.  If the Participant’s death or disability occurs after he or she is or becomes entitled to any benefits hereunder then the Participant’s estate, guardian or fiduciary shall have the right to accept and obtain all of the Participants rights hereunder.  If the Participant has filed the notice of Constructive Termination pursuant to Section 11.3, then the Company must respond to the Participant’s estate, guardian or other fiduciary, as the case may be, in lieu of the Participant, within forty-five (45) days after receipt of the Participant’s claim.  If the Participant’s death or disability occurs (i) within the sixty (60) day period for the Participant to give notice of Constructive Termination under Section 11.3, or (ii) after the Participant’s termination for other than Cause or voluntary termination of employment by Participant (other than a Constructive Termination), then the Participant’s estate, guardian or other fiduciary shall have ninety (90) days after the Participant’s death or disability, as the case may be, to give any written notice to the Company required hereunder.  In either case of Constructive Termination, the procedures of Section 11.3 shall apply with the estate, guardian or other fiduciary acting for the Participant with respect to the claim of Constructive Termination.
14.4    Participant's Cooperation.  The Participant shall cooperate with the Company by furnishing any and all information requested by the Plan Administrator in order to facilitate the payment of benefits hereunder and taking such other actions as may be requested by the Plan Administrator.  
14.5    Confidentiality.  Participant shall keep the terms of the Plan and the Agreement Regarding Executive Continuity Benefits confidential and shall not disclose or characterize any of the terms to anyone (except as may be required by law) other than to members of his or her immediate family, his or her attorney, and persons assisting him or her in financial planning or income tax preparation, provided that Participant shall require these people to keep such information confidential.
14.6    ERISA Plan.  The Plan is intended to be an unfunded program maintained primarily to provide deferred compensation benefits for "a select group of management or highly compensated employees" within the meaning of Sections 201, 301 and 401 of ERISA and therefore to be exempt from Parts 2, 3, and 4 of Title I of ERISA.
14.7    Captions.  The captions of the sections and subsections of the Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.
14.8    Governing Law.  This Plan shall be administered in the United States of America, and its validity, construction, and all rights hereunder shall be governed by the laws of the State of Washington, except to the extent preempted by ERISA, without regard to its choice of law provisions.
14.9    Section 409A of the Code.  To the extent applicable, it is intended that this Plan comply with the provisions of Section 409A of the Code or an exemption thereunder.  This Plan shall be administered in a manner consistent with this intent, and any provision that would cause the Plan to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Company without the consent of any Participant).  Notwithstanding any other provision of this Plan, payments provided under this Plan may only be made upon an event and in a manner that complies with Code Section 409A or an applicable exemption. Any payments to be made under this Plan upon a termination of employment shall only be made if such termination of employment constitutes a “separation from service” under Section 409A of the Code.  Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Participant’s termination of employment shall instead be paid on the first payroll date after the six-month anniversary of the Participant’s termination of employment (or the Participant’s death, if earlier).

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IN WITNESS WHEREOF, the Company has executed this amended and restated Plan on this ___ day of ____________, 2013.
T-MOBILE US, INC.

By:  _______________________________________________

Its:   _______________________________________________

8EX-4.1

CASTLE BRANDS INC.

5% Subordinated Convertible Notes Due 2018

PURCHASE AGREEMENT

This 5% Subordinated Convertible Note Purchase Agreement (the “Agreement”) is made as
of October 21, 2013 by and among Castle Brands Inc., a Florida corporation (the “Issuer”),
and each person or entity named on the Schedule of Purchasers hereto (individually, a
“Purchaser” and collectively, the “Purchasers”).

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
Issuer and each Purchaser agree as follows:

1. Issuance of Notes. Subject to the terms and conditions set forth in this
Agreement, the Issuer agrees to issue and sell to each Purchaser its 5% Subordinated Convertible
Notes due 2018, substantially in the form attached hereto as Exhibit A, in a principal
amount set forth below such Purchaser’s name on the Schedule of Purchasers hereto (such notes, and
all notes from time to time replacing such notes from time to time outstanding, in an aggregate
outstanding principal amount not to exceed at any time $2,125,000 (the “Initial Aggregate
Principal Amount”), being the “Notes”; and this Agreement and the Notes, being
collectively, the “Operative Documents”). The Notes will be convertible into shares of the
Issuer’s common stock, par value $0.01 per share (the “Common Stock”; the Common Stock into
which the Notes may be so converted, the “Conversion Stock”; and the Conversion Stock and
the Notes being, collectively, the “Securities”), in accordance with the terms of the
Notes. Upon each such conversion, the Initial Aggregate Principal Amount shall be automatically
reduced by the principal amount of the Notes subject to such conversion. Capitalized terms used
but not defined herein shall have the meanings ascribed thereto in the Notes.

The Notes will be offered and sold to the Purchasers pursuant to an exemption from the
registration requirements under the Securities Act of 1933, as amended (the “Act”). Upon
original issuance thereof, and so long as required under applicable requirements of the Act, the
Notes shall bear the legend regarding transfer restrictions under the Act set forth in Section 6(i)
hereof.

2. Agreement to Sell and Purchase. On the basis of the representations, warranties
and covenants contained in this Agreement, and subject to its terms and conditions, the Issuer
agrees to issue and sell to the Purchasers, and each Purchaser agrees to purchase from the Issuer,
the Notes in the principal amount set forth below such Purchaser’s name on the Schedule of
Purchasers hereto (the “Purchase Price”).

3. Delivery and Payment.

(a) Delivery of, and payment of the Purchase Price for, the Notes (the “Closing”),
shall be made at 10:00 a.m., Eastern Time, on such other date as may be agreed upon by the
Purchasers and the Issuer (the “Closing Date”) in accordance with Section 3(b) hereof.

(b) At the Closing, the Issuer shall deliver to each Purchaser (or to such other designee(s)
as each Purchaser shall direct at least one business day prior to the Closing) one or more original
Notes against payment by such Purchaser of the Purchase Price by wire transfer in same day funds to
the order of the Issuer.

4. Agreements of the Issuer. The Issuer hereby agrees with the Purchasers as follows:

(a) So long as the Notes remain outstanding, to reserve and keep available at all times, free
of preemptive rights, a sufficient number of authorized shares of its Common Stock for the purpose
of enabling the Issuer to satisfy its obligations to issue such Common Stock as Conversion Stock
upon conversion of the Notes.

(b) To use commercially reasonable efforts to cause all shares of Conversion Stock issuable
upon conversion of the Notes to be listed on the NYSE MKT LLC (“NYSE MKT Approval”) or on
such other national securities exchange or automated quotation system on which the Issuer’s Common
Stock may then be traded or listed so long as such Conversion Stock remains registered under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).

(c) To the extent permitted by applicable law, not to voluntarily claim, and to actively
resist any attempts to claim, the benefit of any usury laws against the holders of any Notes.

(d) To pay all stamp, documentary and transfer taxes and other duties, if any, which may be
imposed by the United States or any political subdivision thereof or taxing authority thereof or
therein with respect to the issuance of the Notes or the sale thereof to the Purchasers.

5. Representations and Warranties of the Issuer. As of the date hereof and as of the
Closing Date, the Issuer represents and warrants to each Purchaser that:

(a) Organization and Qualification. The Issuer and its “Subsidiaries” (which
for purposes of this Agreement means any entity in which the Issuer, directly or indirectly, owns
capital stock or holds an equity or similar interest that exceeds 50% of the aggregate outstanding
equity or similar interests of such entity) are entities duly organized and validly existing in
good standing under the laws of the jurisdiction in which they are formed, and have the requisite
power and authority to own their material properties and to carry on their business as now being
conducted in all material respects.

(b) Authorization; Enforcement; Validity. The Issuer has the requisite corporate
power and authority to enter into and perform its obligations under each of the Operative Documents
and to issue the Notes in accordance with the terms hereof. The execution and delivery of this
Agreement and the other Operative Documents by the Issuer and the consummation by the Issuer of the
transactions contemplated hereby and thereby, including, without limitation, the issuance of the
Notes, the reservation for issuance, and the issuance of the Conversion Stock issuable upon
conversion of any Notes, have been duly authorized by the Issuer’s board of directors or a duly
authorized committee thereof (the “Board”) and (other than such filings as may be required
by and with the NYSE MKT LLC with respect to the transactions contemplated hereby), no further
consent or authorization by the Issuer, its Board, or its shareholders is required. This Agreement
has been duly executed and delivered by the Issuer and is, and upon execution and delivery of the
other Operative Documents by the Issuer, each of the Operative Documents will be, the legal, valid
and binding obligations of the Issuer, enforceable against the Issuer in accordance with their
respective terms, except as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting creditors’ rights and remedies generally.

(c) Issuance of Notes. The Notes are duly authorized and upon issuance, shall be free
from all taxes, liens and charges with respect to the issue thereof. As of the Closing Date, a
number of shares of Common Stock shall have been duly authorized and reserved for issuance, free of
pre-emptive rights, and sufficient for the purpose of enabling the Issuer to satisfy all
obligations to issue the Conversion Stock upon conversion of all of the Notes. Upon conversion of
Notes into Conversion Stock in accordance with their terms, the Conversion Stock will be validly
issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens
and charges with respect to the issue thereof, with the holders thereof being entitled to all
rights accorded to a holder of Common Stock.

(d) No Broker’s Fees. The Issuer has not engaged any broker, finder, commission agent
or other person in connection with the transactions contemplated in the Operative Documents, and
the Issuer is not under any obligation to pay any broker’s fee or commission in connection with
such transactions.

(e) SEC Reports. Each report, registration statement and definitive proxy statement
(the “SEC Reports”) filed by Issuer with the Securities and Exchange Commission (the
“SEC”) during the last two fiscal years and the interim period prior to the date of this
Agreement, which are all the forms, reports and documents required to be filed by the Issuer with
the SEC during such time period, are publicly available to the Purchasers on the SEC’s website. As
of their respective dates the SEC Reports: (i) were prepared in accordance, and complied in all
material respects, with the requirements of the Act or the Exchange Act, as the case may be, and
the rules and regulations of the SEC thereunder applicable to such SEC Reports, and (ii) did not at
the time they were filed (and if amended or superseded by a filing prior to the date of this
Agreement then on the date of such filing and as so amended or superseded) contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. Except to the extent set forth herein, the Issuer makes no
representation or warranty whatsoever concerning any SEC Report as of any time other than the date
or period with respect to which it was filed.

(f) Financial Statements. Each set of financial statements (including, in each case,
any related notes thereto) contained in the SEC Reports complied as to form in all material
respects with the published rules and regulations of the SEC with respect thereto, was prepared in
accordance with U.S. generally accepted accounting principles applied on a consistent basis
throughout the periods involved (except as may be indicated in the notes thereto or, in the case of
unaudited statements, do not contain footnotes as permitted by Form 10-Q under the Exchange Act)
and each fairly presents in all material respects the financial position of Issuer at the
respective dates thereof and the results of its operations and cash flows for the periods
indicated, except that the unaudited interim financial statements were subject to normal
adjustments.

The Issuer acknowledges that each Purchaser will rely upon the accuracy and truth of the
foregoing representations and hereby consents to such reliance.

6. Representations, Warranties and Agreements of the Purchasers. Each Purchaser, for
itself and for no other Purchaser, represents and warrants to, and agrees with, the Issuer that:

(a) Authorization; Enforcement; Validity. Such Purchaser has the requisite power and
authority to enter into and perform its obligations under each of the Operative Documents to which
it is a party. The execution and delivery by such Purchaser of this Agreement and the other
Operative Documents to which it is a party, and the consummation by such Purchaser of the
transactions contemplated hereby and thereby, have been duly authorized by such Purchaser and no
further consent or authorization is required by such Purchaser or its beneficiary or beneficiaries,
as the case may be. This Agreement has been duly executed and delivered by such Purchaser and is,
and upon execution and delivery by such Purchaser of the other Operative Documents to which it is a
party, such Operative Documents will be, the legal, valid and binding obligations of such
Purchaser, enforceable against such Purchaser in accordance with their respective terms, except as
such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
creditors’ rights and remedies generally.

(b) Consents. Except for (i) compliance with any filings and notifications under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) which may
be required in the future in connection with conversion of the Notes and (ii) any filings required
under the Exchange Act, such Purchaser is not required to obtain any consent, authorization or
order of, or make any filing or registration with, any court, governmental agency or any regulatory
or self-regulatory agency or any other person in order for it to execute, deliver or perform any of
its obligations under or contemplated by this Agreement or the other Operative Documents to which
it is a party, in each case in accordance with the terms hereof or thereof. All consents,
authorizations, orders, filings and registrations which such Purchaser is required to obtain or
make pursuant to the preceding sentence have been (or will be) obtained or made on or prior to the
Closing Date.

(c) Sufficiency of Funds. Such Purchaser has, and will have at the Closing,
sufficient funds available to pay the Purchase Price for such Purchaser’s Notes.

(d) No Broker’s Fees. Such Purchaser has not engaged any broker, finder, commission
agent or other person in connection with the transactions contemplated in the Operative Documents,
and such Purchaser is not under any obligation to pay any broker’s fee or commission in connection
with such transactions.

(e) Investor Status. Such Purchaser is an “accredited investor” within the meaning of
Rule 501 of Regulation D under the Act with such knowledge and experience in financial and business
matters as are necessary in order to evaluate the merits and risks of an investment in the
Securities. Such Purchaser is acquiring the Securities for its own account and is not acquiring
the Securities with a view to any distribution thereof or with any present intention of offering or
selling any of the Securities in a transaction that would violate the Act or the securities laws of
any state of the United States or any other applicable jurisdiction.

(f) Reliance on Exemptions. Such Purchaser understands that the Securities are being
offered and issued in reliance on specific exemptions from the registration requirements of the
United States federal and state securities laws and the Issuer is relying in part upon the truth
and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Purchaser set forth herein in order to determine the
availability of such exemptions and the eligibility of such Purchaser to acquire the Securities.
Such Purchaser also understands that the Securities may not be offered or sold except pursuant to
an effective registration statement under the Act or pursuant to an applicable exemption from
registration under the Act. Such Purchaser further understands that the exemption from
registration afforded by Rule 144 promulgated under the Act depends on the satisfaction of various
conditions, and that, if applicable, Rule 144 may afford the basis for sales only in limited
amounts.

(g) Information. Such Purchaser and its advisors, if any, have had access to and
reviewed the Issuer’s reports under the Exchange Act filed with the U.S. Securities and Exchange
Commission (collectively, the “Public Reports”) and such Purchaser acknowledges that the
information contained in the Public Reports is sufficient to allow such Purchaser to make an
investment decision with respect to its acquisition of the Securities. Such Purchaser understands
that its investment in the Securities involves a high degree of risk. Such Purchaser has sought
such accounting, legal and tax advice as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Securities.

(h) Transfer or Resale. Such Purchaser understands that the Securities have not been
and are not being registered under the Act or any state securities laws (except as provided in the
Notes), and may not be offered for sale, sold, assigned or transferred unless (a) (i) subsequently
registered thereunder, (ii) such Purchaser shall have delivered to the Issuer an opinion of
counsel, in a generally acceptable form, to the effect that such Securities to be sold, assigned or
transferred may be sold, assigned or transferred pursuant to an exemption from such registration,
or (iii) such Purchaser provides the Issuer with reasonable assurance that such Securities can be
sold, assigned or transferred pursuant to Rule 144 promulgated under the Act (or, in each case, a
successor rule thereto) and (b) such Purchaser otherwise complies with the restrictions on transfer
set forth in the Notes.

(i) Legends. Such Purchaser understands that the certificates or other instruments
representing the Securities shall bear any legend as required by the “blue sky” laws of any state
and a restrictive legend in substantially the following form (and a stop-transfer order may be
placed against transfer of such stock certificates):

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR (B) AN
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS.

Such Purchaser acknowledges that the Issuer will rely upon the accuracy and truth of the
foregoing representations and such Purchaser hereby consents to such reliance.

7. Conditions of Obligations.

(a) The obligations of each Purchaser to purchase the Notes under this Agreement on the
Closing Date are subject to the satisfaction of each of the following conditions:

(i) All the representations and warranties of the Issuer contained in this Agreement that are
not modified by materiality shall be true and correct in all material respects, and all of the
representations and warranties of the Issuer contained in this Agreement that are modified by
materiality shall be true and correct, in each case, as of the date hereof and on the Closing Date
with the same force and effect as if made on and as of the Closing Date. The Issuer shall have
performed all covenants and agreements, in all material respects, and satisfied all conditions, in
all material respects, on its part to be performed or satisfied at or prior to the Closing Date.

(ii) The Issuer shall have executed and delivered the Operative Documents, and the Purchasers
shall have received fully executed copies thereof. The Operative Documents shall be in full force
and effect as of the Closing Date. The Issuer shall have received the requisite governmental and
regulatory approval in connection with each of the Operative Documents to be completed on or before
the Closing Date.

(iii) No action shall have been taken and no statute, rule, regulation or order shall have
been enacted, adopted or issued by any federal, state or local or any foreign government, or
political subdivision thereof, or any authority, agency or commission entitled to exercise any
administrative, executive, judicial, legislative or regulatory authority (a “Governmental
Authority”) which would, as of the Closing Date, prevent the issuance of the Notes or the
consummation of any of the other transactions contemplated by the Operative Documents; no action,
suit or proceeding shall have been commenced and be pending against or affecting or, to the
knowledge of the Issuer, threatened against, the Issuer before any court or arbitrator or any
Governmental Authority or an official thereof that, if adversely determined, would be expected to
result in a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect”
means any material adverse effect on the business, assets, results of operations, or condition
(financial or otherwise) of the Issuer and its Subsidiaries, taken as a whole, or on the
transactions contemplated hereby and by the other Operative Documents taken as a whole or by the
agreements and instruments to be entered into in connection herewith or therewith, or on the
authority or ability of the Issuer to perform its obligations under the Operative Documents.

(b) The obligations of the Issuer to sell and deliver the Notes to the Purchasers under this
Agreement on the Closing Date are subject to the satisfaction of each of the following conditions:

(i) All the representations and warranties of the Purchasers contained in this Agreement that
are not modified by materiality shall be true and correct in all material respects, and all of the
representations and warranties of the Purchasers contained in this Agreement that are modified by
materiality shall be true and correct, in each case, as of the date hereof and on the Closing Date
with the same force and effect as if made on and as of the Closing Date. The Purchasers shall have
performed all covenants and agreements, in all material respects, and satisfied all conditions, in
all material respects, on its part to be performed or satisfied at or prior to the Closing Date.

(ii) Each Purchaser shall have executed and delivered (a) the Operative Documents to which it
is a party and (b) a joinder to that certain Subordination Agreement, dated as of August 7, 2013,
between Keltic Financial Partners II, LP, a Delaware limited partnership, and certain junior
lenders to the Issuer, and the Issuer shall have received fully executed copies thereof. The
Operative Documents shall be in full force and effect as of the Closing Date. Each Purchaser shall
have received the requisite governmental and regulatory approval in connection with each of the
Operative Documents to be completed on or before the Closing Date.

(iii) No action shall have been taken and no statute, rule, regulation or order shall have
been enacted, adopted or issued by any Governmental Authority which would, as of the Closing Date,
prevent the issuance of the Notes or the consummation of any of the other transactions contemplated
by the Operative Documents; no action, suit or proceeding shall have been commenced and be pending
against or affecting or, to the knowledge of such Purchaser, threatened against, such Purchaser
before any court or arbitrator or any Governmental Authority or an official thereof that, if
adversely determined, would be expected to result in a material adverse effect on the authority or
ability of such Purchaser to perform its obligations under the Operative Documents.

(iv) The Issuer shall have received the Purchase Price, in accordance with Section 3(b)
hereof.

(v) NYSE MKT Approval shall have been obtained.

8. Notices. All statements, requests, notices and agreements (each, a
“Notice”) hereunder shall be in writing, and:

(a) If to the Purchasers, Notices shall be delivered or sent by mail, facsimile transmission
or overnight courier to a Purchaser as set forth on the Schedule of Purchasers or to such other
address as such Purchaser may designate in writing:

(b) If to the Issuer, Notices shall be delivered or sent by mail, facsimile transmission or
overnight courier to the address of the Issuer as follows:

Castle Brands Inc.

122 East 42nd Street, Suite 4700

New York, NY 10168

Attention: Alfred J. Small

Facsimile: (646) 356.0222

or to such other address as the Issuer may designate in writing,

Any such statements, requests, notices or agreements shall take effect upon receipt thereof.

9. Applicable Law. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS
AND CONDITIONS SET FORTH HEREIN, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE
THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

10. Submission to Jurisdiction. EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY (I)
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE FEDERAL, TO THE EXTENT PERMITTED BY APPLICABLE
LAW, AND STATE COURTS SITTING IN NEW YORK COUNTY, NEW YORK IN ANY SUIT OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY; AND (II) WAIVES (A) ITS
RIGHT TO A TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, THE
TRANSACTIONS CONTEMPLATED HEREBY, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PURCHASER AND FOR ANY COUNTERCLAIM RELATED TO ANY OF THE
FOREGOING AND (B) ANY OBLIGATION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF
ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

11. Counterparts. This Agreement may be signed in various counterparts, and by each
party in several counterparts, all of which together shall constitute one and the same instrument.
Delivery of an executed signature page of this Agreement by electronic or facsimile transmission
shall be as effective as delivery of a manually executed counterpart hereof.

12. Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

13. Third Parties. This Agreement shall inure to the benefit of and be binding upon
the Purchasers and the Issuer and their respective successors, permitted assigns and legal
representatives, and nothing expressed or mentioned in this Agreement is intended or shall be
construed to give any other person any legal or equitable right, remedy or claim under or in
respect of this Agreement, or any provisions herein contained; this Agreement and all conditions
and provisions hereof being intended to be and being for the sole and exclusive benefit of such
persons and for the benefit of no other person. No purchaser of the Notes from any Purchaser will
be deemed a successor because of such purchase.

14. Invalidity. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties
that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

15. Amendments, Modifications, Waivers, etc. This Agreement may be amended, modified
or supplemented, and waivers or consents to departures from the provisions hereof may be given,
provided that the same are in writing and signed by all of the signatories hereto.

16. HSR Fees and Expenses. The Issuer agrees to reimburse the Purchasers for any fees
in connection with filings and notifications required under the HSR Act in order to permit the
Purchasers to convert any or all of the Notes.

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties have executed this Purchase Agreement as of the date
first written above.

CASTLE BRANDS INC.

	 	 	 
	By: /s/ Alfred J. Small

	Name:

	 	Alfred J. Small

	 	 	Title: Senior Vice President and Chief Financial

Officer

[Signatures continue on following pages]

SCHEDULE OF PURCHASERS

IN WITNESS WHEREOF, the parties have executed this Purchase Agreement as of the date first
written above.

Name of Purchaser:

Signature of Authorized Signatory of Purchaser:

Name of Authorized Signatory:

Title of Authorized Signatory:

Email Address of Authorized Signatory:

Facsimile Number of Authorized Signatory:

Address for Notice of Purchaser:

Address for Delivery of Notes for Purchaser (if not same as address for notice):

Principal Amount: $     

EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE PAGES CONTINUE]

EXHIBIT A

FORM OF NOTE

(see attached)

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