Document:

Naked Brand Group, Inc.: Exhibit 10.3 - Filed by newsfilecorp.com

  
    
      
        THE SECURITIES OFFERED HEREBY HAVE NOT BEEN AND WILL NOT BE
          REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE
          SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION
          PROVIDED BY SECTION 3(b) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND THE
          RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT) 

      

    

  

US $25,000.00 

NAKED BRAND GROUP, INC. 
8% CONVERTIBLE REDEEMABLE NOTE

DUE SEPTEMBER 23, 2014 

          FOR
VALUE RECEIVED, Naked Brand Group, Inc, (the “Company”) promises to pay to the
order of ___________________ and its authorized successors and permitted assigns
("Holder"), the aggregate principal face amount of Twenty Five Thousand
dollars exactly (U.S. $25,000.00) on September 23, 2014 ("Maturity Date")
and to pay interest on the principal amount outstanding hereunder at the rate of
8% per annum commencing on December 23, 2013. The interest will be paid to the
Holder in whose name this Note is registered on the records of the Company
regarding registration and transfers of this Note. The principal of, and
interest on, this Note are payable at 16192 Coastal Highway, Lewes, DE 19958,
initially, and if changed, last appearing on the records of the Company as
designated in writing by the Holder hereof from time to time. The Company will
pay each interest payment and the outstanding principal due upon this Note
before or on the Maturity Date, less any amounts required by law to be deducted
or withheld, to the Holder of this Note by check or wire transfer addressed to
such Holder at the last address appearing on the records of the Company. The
forwarding of such check or wire transfer shall constitute a payment of
outstanding principal hereunder and shall satisfy and discharge the liability
for principal on this Note to the extent of the sum represented by such check or
wire transfer. Interest shall be payable in Common Stock (as defined below)
pursuant to paragraph 4(b) herein. 

                   
This Note is subject to the following additional provisions: 

         
1.           This Note is
exchangeable for an equal aggregate principal amount of Notes of different
authorized denominations, as requested by the Holder surrendering the same. No
service charge will be made for such registration or transfer or exchange,
except that Holder shall pay any tax or other governmental charges payable in
connection therewith. 

____ 
Initials 

                   
2.           The Company shall
be entitled to withhold from all payments any amounts required to be withheld
under applicable laws. 

                   
3.           This Note may be
transferred or exchanged only in compliance with the Securities Act of 1933, as
amended ("Act") and applicable state securities laws. Any attempted
transfer to a non-qualifying party shall be treated by the Company as void.
Prior to due presentment for transfer of this Note, the Company and any agent of
the Company may treat the person in whose name this Note is duly registered on
the Company's records as the owner hereof for all other purposes, whether or not
this Note be overdue, and neither the Company nor any such agent shall be
affected or bound by notice to the contrary. Any Holder of this Note electing to
exercise the right of conversion set forth in Section 4(a) hereof, in addition
to the requirements set forth in Section 4(a), and any prospective transferee of
this Note, also is required to give the Company written confirmation that this
Note is being converted ("Notice of Conversion") in the form annexed
hereto as Exhibit A. The date of receipt (including receipt by telecopy)
of such Notice of Conversion shall be the Conversion Date.

                   
4.          
(a)           The Holder of
this Note is entitled, at its option, at any time after 180 days, and after full
cash payment for the shares convertible hereunder, to convert all or any
amount of the principal face amount of this Note then outstanding into shares of
the Company's common stock (the "Common Stock") without restrictive
legend of any nature, at a price ("Conversion Price") for each share of
Common Stock equal to 55% of the average of the two lowest
closing bid prices of the Common Stock as reported on
the National Quotations Bureau OTCQB exchange which the Company’s shares are
traded or any exchange upon which the Common Stock may be traded in the future
("Exchange"), for the ten prior
trading days including the day upon which a Notice of Conversion is received
by the Company (provided such Notice of Conversion is delivered by fax or other
electronic method of communication to the Company after 4 P.M. Eastern Standard
or Daylight Savings Time if the Holder wishes to included the same day closing
price). If the shares have not been delivered within 3 business days, the Notice
of Conversion may be rescinded. Such conversion shall be effectuated by the
Company delivering the shares of Common Stock to the Holder within 3 business
days of receipt by the Company of the Notice of Conversion. Once the Holder has
received such shares of Common Stock, the Holder shall surrender this Note to
the Company, executed by the Holder evidencing such Holder's intention to
convert this Note or a specified portion hereof, and accompanied by proper
assignment hereof in blank. Accrued but unpaid interest shall be subject to
conversion. No fractional shares or scrip representing fractions of shares will
be issued on conversion, but the number of shares issuable shall be rounded to
the nearest whole share. 

                                    
(b)           Interest on any
unpaid principal balance of this Note shall be paid at the rate of 8% per annum.
Interest shall be paid by the Company in Common Stock ("Interest Shares"). The
entire 9 months Interest on this Note shall be prepaid by the Company. The
Holder may, at any time, send in a Notice of Conversion to the Company for
Interest Shares based on the formula provided in Section 4(a) above. The dollar
amount converted into Interest Shares shall be all or a portion of the accrued
interest calculated on the unpaid principal balance of this Note to the date of
such notice. Notwithstanding the foregoing, the Holder may not send in a Notice
of Conversion covering any interest that has been prepaid but has not yet been
earned (for example, a Notice of Conversion send in on day 181 may not
include Interest for any period of time after day 181. Any prepaid but unearned
interest shall be waived. 

2 

____ 
Initials 

                            (c)          
During the first six months this Note is in effect, the Company may redeem this
Note by paying to the Holder an amount as follows: (i) if the redemption is
within the first 60 days this Note is in effect, then for an amount equal to
120% of the unpaid principal amount of this Note along with any prepaid and
earned interest, (ii) if the redemption is after the 61st day this Note is in
effect but less than the 120th day this Note is in effect, then for
an amount equal to 130% of the unpaid principal amount of this Note along with
any prepaid and earned interest, (iii) if the redemption is after the 121st day
this Note is in effect but less than the 180th day this Note is in
effect, then for an amount equal to 140% of the unpaid principal amount of this
Note along with any prepaid and earned interest. This Note may not be redeemed
after 180 days. The redemption must be closed and paid for within 3 business
days of the Company sending the redemption demand or the redemption will be
invalid and the Company may not redeem this Note. 

                            (d)          
Upon (i) a transfer of all or substantially all of the assets of the Company to
any person in a single transaction or series of related transactions, (ii) a
reclassification, capital reorganization or other change or exchange of
outstanding shares of the Common Stock, or (iii) any consolidation or merger of
the Company with or into another person or entity in which the Company is not
the surviving entity (other than a merger which is effected solely to change the
jurisdiction of incorporation of the Company and results in a reclassification,
conversion or exchange of outstanding shares of Common Stock solely into shares
of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale
Event"), then, in each case, the Company shall, upon request of the Holder,
redeem this Note in cash for 150% of the principal amount, plus accrued but
unpaid interest through the date of redemption, or at the election of the
Holder, such Holder may convert the unpaid principal amount of this Note
(together with the amount of accrued but unpaid interest) into shares of Common
Stock immediately prior to such Sale Event at the Conversion Price. 

                            (e)          
In case of any Sale Event in connection with which this Note is not redeemed or
converted, the Company shall cause effective provision to be made so that the
Holder of this Note shall have the right thereafter, by converting this Note, to
purchase or convert this Note into the kind and number of shares of stock or
other securities or property (including cash) receivable upon such
reclassification, capital reorganization or other change, consolidation or
merger by a holder of the number of shares of Common Stock that could have been
purchased upon exercise of the Note and at the same Conversion Price, as defined
in this Note, immediately prior to such Sale Event. The foregoing provisions
shall similarly apply to successive Sale Events. If the consideration received
by the holders of Common Stock is other than cash, the value shall be as
determined by the Board of Directors of the Company or successor person or
entity acting in good faith. 

                            5.          
No provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, and interest on,
this Note at the time, place, and rate, and in the form, herein prescribed. 

3 

_____
Initials 

                            6.          
The Company hereby expressly waives demand and presentment for payment, notice
of non-payment, protest, notice of protest, notice of dishonor, notice of
acceleration or intent to accelerate, and diligence in taking any action to
collect amounts called for hereunder and shall be directly and primarily liable
for the payment of all sums owing and to be owing hereto. 

                           
7.           The Company
agrees to pay all costs and expenses, including reasonable attorneys' fees and
expenses, which may be incurred by the Holder in collecting any amount due under
this Note. 

                           
8.           If one or more of
the following described "Events of Default" shall occur: 

                            (a)        
The Company shall default in the payment of principal or interest on this Note
or any other note issued to the Holder by the Company; or 

                            (b)         Any
of the representations or warranties made by the Company herein or in any
certificate or financial or other written statements heretofore or hereafter
furnished by or on behalf of the Company in connection with the execution and
delivery of this Note, or the Securities Purchase Agreement under which this
note was issued shall be false or misleading in any respect; or 

                            (c)         The
Company shall fail to perform or observe, in any respect, any covenant, term,
provision, condition, agreement or obligation of the Company under this Note or
any other note issued to the Holder, and not cure such failure within 10 days of
such event; or 

                            (d)         The
Company shall (1) become insolvent; (2) admit in writing its inability to pay
its debts generally as they mature; (3) make an assignment for the benefit of
creditors or commence proceedings for its dissolution; (4) apply for or consent
to the appointment of a trustee, liquidator or receiver for its or for a
substantial part of its property or business; (5) file a petition for bankruptcy
relief, consent to the filing of such petition or have filed against it an
involuntary petition for bankruptcy relief, all under federal or state laws as
applicable; or 

                            (e)         A
trustee, liquidator or receiver shall be appointed for the Company or for a
substantial part of its property or business without its consent and shall not
be discharged within thirty (30) days after such appointment; or 

                            (f)         Any
governmental agency or any court of competent jurisdiction at the instance of
any governmental agency shall assume custody or control of the whole or any
substantial portion of the properties or assets of the Company; or 

                            (g)         One
or more money judgments, writs or warrants of attachment, or similar process, in
excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or
filed against the Company or any of its properties or other assets and shall
remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) days
or in any event later than five (5) days prior to the date of any proposed sale
thereunder; or 

4 

______
Initials 

                            (h)          
After January 6, 2013, defaulted on or breached any term of any other note of
similar debt instrument into which the Company has entered and failed to cure
such default within the appropriate grace period; or 

                           
(i)           The Company
shall have its Common Stock delisted from an exchange (including the OTCBB
exchange) or, if the Common Stock trades on an exchange, then trading in the
Common Stock shall be suspended for more than 10 consecutive days;

                           
(j)           Intentionally
Deleted;

                           
(k)           The Company
shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein
without restrictive legend within 3 business days of its receipt of a Notice of
Conversion; or 

                           
(l)           The Company
shall not replenish the reserve set forth in Section 12, within 3 business days
of the request of the Holder. 

Then, or at any time thereafter, unless cured, and in each and
every such case, unless such Event of Default shall have been waived in writing
by the Holder (which waiver shall not be deemed to be a waiver of any subsequent
default) at the option of the Holder and in the Holder's sole discretion, the
Holder may consider this Note immediately due and payable, without presentment,
demand, protest or (further) notice of any kind (other than notice of
acceleration), all of which are hereby expressly waived, anything herein or in
any note or other instruments contained to the contrary notwithstanding, and the
Holder may immediately, and without expiration of any period of grace, enforce
any and all of the Holder's rights and remedies provided herein or any other
rights or remedies afforded by law. Upon an Event of Default, interest shall be
accrue at a default interest rate of 24% per annum or, if such rate is usurious
or not permitted by current law, then at the highest rate of interest permitted
by law. In the event of a breach of 8(k) the penalty shall be $250 per day the
shares are not issued beginning on the 4th day after the conversion
notice was delivered to the Company. This penalty shall increase to $500 per day
beginning on the 10th day. 

If the Holder shall commence an action or proceeding to enforce
any provisions of this Note, including without limitation engaging an attorney,
then the Holder shall be reimbursed by the Company for its attorneys’ fees and
other costs and expenses incurred in the investigation, preparation and
prosecution of such action or proceeding.

                             
9.           In case any
provision of this Note is held by a court of competent jurisdiction to be
excessive in scope or otherwise invalid or unenforceable, such provision shall
be adjusted rather than voided, if possible, so that it is enforceable to the
maximum extent possible, and the validity and enforceability of the remaining
provisions of this Note will not in any way be affected or impaired thereby.

                             
10.         Neither this Note nor
any term hereof may be amended, waived, discharged or terminated other than by a
written instrument signed by the Company and the Holder. 

5 

_____
Initials 

                           
11.         The Company represents that
it is not a “shell” issuer and has never been a “shell” issuer or that if it
previously has been a “shell” issuer that at least 12 months have passed since
the Company has reported form 10 type information indicating it is no longer a
“shell issuer. Further. The Company will instruct its counsel to either (i)
write a 144- 3(a)(9) opinion to allow for salability of the conversion shares or
(ii) accept such opinion from Holder’s counsel. 

                           
12.          The Company will
issue irrevocable transfer agent instructions reserving 1,000,000 shares of
Common Stock for conversion under this Note. The reserve shall be replenished as
needed to allow for conversions of this Note. Upon full conversion of this Note,
the reserve representing this Note shall be cancelled.

                           
13.          The Company will
give the Holder direct notice of any corporate actions including but not limited
to name changes, stock splits, recapitalizations etc. This notice shall be given
to the Holder as soon as possible under law.

                            14.          This
Note shall be governed by and construed in accordance with the laws of New York
applicable to contracts made and wholly to be performed within the State of New
York and shall be binding upon the successors and assigns of each party hereto.
The Holder and the Company hereby mutually waive trial by jury and consent to
exclusive jurisdiction and venue in the courts of the State of New York. This
Agreement may be executed in counterparts, and the facsimile transmission of an
executed counterpart to this Agreement shall be effective as an original. 

                           
IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by an
officer thereunto duly authorized. 

Dated: December 23, 2013 

NAKED BRAND GROUP, INC. 

   By:
__________________________________

Title:
__________________________________ 

6

_____
Initials 

EXHIBIT A 

NOTICE OF CONVERSION 

(To be Executed by the Registered Holder in order to Convert the
Note) 

                               
The undersigned hereby irrevocably elects to convert $___________ of the above
Note into _________ Shares of Common Stock of Naked Brand Group, Inc, (“Shares”)
according to the conditions set forth in such Note, as of the date written
below. 

                               
If Shares are to be issued in the name of a person other than the undersigned,
the undersigned will pay all transfer and other taxes and charges payable with
respect thereto. 

Date of Conversion:
__________________________________________________________________________________________
Applicable
Conversion Price:
___________________________________________________________________________________
Signature:
__________________________________________________________________________________________________
                                                 
[Print Name of Holder and Title of Signer] 
Address:
__________________________________________________________________________________________________

SSN or EIN:
__________________________________________________________
Shares are to be
registered in the following name:
____________________________________________________________________

Name:
______________________________________________________________
Address:
____________________________________________________________
Tel:
________________________________________________________________
Fax:
________________________________________________________________
SSN or EIN:
__________________________________________________________

Shares are to be sent or delivered to the following account:

Account Name:
_____________________________________________________________________________________________
Address:
__________________________________________________________________________________________________

7

____ 
InitialsNaked Brand Group, Inc.: Exhibit 10.4 - Filed by newsfilecorp.com

  
    
      
        THE SECURITIES OFFERED HEREBY HAVE NOT BEEN AND WILL NOT BE
          REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE
          SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION
          PROVIDED BY SECTION 3(b) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND THE
          RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT) 

      

    

  

US $25,000.00 

NAKED BRAND GROUP, INC. 
8% CONVERTIBLE REDEEMABLE NOTE

DUE NOVEMBER 23, 2014 
BACK END NOTE

          FOR
VALUE RECEIVED, Naked Brand Group, Inc., (the “Company”) promises to pay to the
order of ___________________ and its authorized successors and permitted assigns
("Holder"), the aggregate principal face amount of Twenty Five Thousand
dollars exactly (U.S. $25,000.00) on November 23, 2014 ("Maturity Date")
and to pay interest on the principal amount outstanding hereunder at the rate of
8% per annum commencing on December 23, 2013. The Company agrees that upon the
date of cash funding of this note it will receive the sum of Twenty Five
Thousand Dollars. The interest will be paid to the Holder in whose name this
Note is registered on the records of the Company regarding registration and
transfers of this Note. The principal of, and interest on, this Note are payable
at 16192 Coastal Highway, Lewes, DE 19958, initially, and if changed, last
appearing on the records of the Company as designated in writing by the Holder
hereof from time to time. The Company will pay each interest payment and the
outstanding principal due upon this Note before or on the Maturity Date, less
any amounts required by law to be deducted or withheld, to the Holder of this
Note by check or wire transfer addressed to such Holder at the last address
appearing on the records of the Company. The forwarding of such check or wire
transfer shall constitute a payment of outstanding principal hereunder and shall
satisfy and discharge the liability for principal on this Note to the extent of
the sum represented by such check or wire transfer. Interest shall be payable in
Common Stock (as defined below) pursuant to paragraph 4(b) herein. 

                            This
Note is subject to the following additional provisions: 

                            1.          
This Note is exchangeable for an equal aggregate principal amount of Notes of
different authorized denominations, as requested by the Holder surrendering the
same. No service charge will be made for such registration or
transfer or exchange, except that Holder shall pay any tax or other governmental
charges payable in connection therewith. 

_____
Initials 

                            2.          
The Company shall be entitled to withhold from all payments any amounts required
to be withheld under applicable laws. 

                           
3.           This Note may be
transferred or exchanged only in compliance with the Securities Act of 1933, as
amended ("Act") and applicable state securities laws. Any attempted
transfer to a non-qualifying party shall be treated by the Company as void.
Prior to due presentment for transfer of this Note, the Company and any agent of
the Company may treat the person in whose name this Note is duly registered on
the Company's records as the owner hereof for all other purposes, whether or not
this Note be overdue, and neither the Company nor any such agent shall be
affected or bound by notice to the contrary. Any Holder of this Note electing to
exercise the right of conversion set forth in Section 4(a) hereof, in addition
to the requirements set forth in Section 4(a), and any prospective transferee of
this Note, also is required to give the Company written confirmation that this
Note is being converted ("Notice of Conversion") in the form annexed
hereto as Exhibit A. The date of receipt (including receipt by telecopy)
of such Notice of Conversion shall be the Conversion Date.

                             
4.           (a) The Holder of
this Note is entitled, at its option, at any time after 180 days, and after full
cash payment for the shares convertible hereunder, to convert all or any
amount of the principal face amount of this Note then outstanding into shares of
the Company's common stock (the "Common Stock") without restrictive
legend of any nature, at a price ("Conversion Price") for each share of
Common Stock equal to 55% of the average of the two lowest
closing bid prices of the Common Stock as reported on
the National Quotations Bureau OTCQB exchange which the Company’s shares are
traded or any exchange upon which the Common Stock may be traded in the future
("Exchange"), for the ten prior
trading days including the day upon which a Notice of Conversion is received
by the Company (provided such Notice of Conversion is delivered by fax or other
electronic method of communication to the Company after 4 P.M. Eastern Standard
or Daylight Savings Time if the Holder wishes to included the same day closing
price). If the shares have not been delivered within 3 business days, the Notice
of Conversion may be rescinded. Such conversion shall be effectuated by the
Company delivering the shares of Common Stock to the Holder within 3 business
days of receipt by the Company of the Notice of Conversion. Once the Holder has
received such shares of Common Stock, the Holder shall surrender this Note to
the Company, executed by the Holder evidencing such Holder's intention to
convert this Note or a specified portion hereof, and accompanied by proper
assignment hereof in blank. Accrued but unpaid interest shall be subject to
conversion. No fractional shares or scrip representing fractions of shares will
be issued on conversion, but the number of shares issuable shall be rounded to
the nearest whole share. 

                            
(b)           Interest on any
unpaid principal balance of this Note shall be paid at the rate of 8% per annum.
Interest shall be paid by the Company in Common Stock ("Interest Shares"). The
Holder may, at any time, send in a Notice of Conversion to the Company for
Interest Shares based on the formula provided in Section 4(a) above. The dollar
amount converted into Interest Shares shall be all or a portion of the accrued
interest calculated on the unpaid principal balance of this Note to the date of
such notice.

2 

_____
Initials 

                            (c)          
This Note may not be prepaid, except that if the $25,000 Rule 144 convertible
redeemable note issued by the Company of even date herewith is redeemed by the
Company within 6 months of the issuance date of such Note, this Note will
automatically terminate, as will he offsetting Holder issued $25,000 note. 

                           
(d)           Upon (i) a
transfer of all or substantially all of the assets of the Company to any person
in a single transaction or series of related transactions, (ii) a
reclassification, capital reorganization or other change or exchange of
outstanding shares of the Common Stock, or (iii) any consolidation or merger of
the Company with or into another person or entity in which the Company is not
the surviving entity (other than a merger which is effected solely to change the
jurisdiction of incorporation of the Company and results in a reclassification,
conversion or exchange of outstanding shares of Common Stock solely into shares
of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale
Event"), then, in each case, the Company shall, upon request of the Holder,
redeem this Note in cash for 150% of the principal amount, plus accrued but
unpaid interest through the date of redemption, or at the election of the
Holder, such Holder may convert the unpaid principal amount of this Note
(together with the amount of accrued but unpaid interest) into shares of Common
Stock immediately prior to such Sale Event at the Conversion Price. 

                           
(e)           In case of any
Sale Event in connection with which this Note is not redeemed or converted, the
Company shall cause effective provision to be made so that the Holder of this
Note shall have the right thereafter, by converting this Note, to purchase or
convert this Note into the kind and number of shares of stock or other
securities or property (including cash) receivable upon such reclassification,
capital reorganization or other change, consolidation or merger by a holder of
the number of shares of Common Stock that could have been purchased upon
exercise of the Note and at the same Conversion Price, as defined in this Note,
immediately prior to such Sale Event. The foregoing provisions shall similarly
apply to successive Sale Events. If the consideration received by the holders of
Common Stock is other than cash, the value shall be as determined by the Board
of Directors of the Company or successor person or entity acting in good faith.

                           
5.           No provision of
this Note shall alter or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of, and interest on, this Note at the
time, place, and rate, and in the form, herein prescribed. 

                           
6.           The Company
hereby expressly waives demand and presentment for payment, notice of
non-payment, protest, notice of protest, notice of dishonor, notice of
acceleration or intent to accelerate, and diligence in taking any action to
collect amounts called for hereunder and shall be directly and primarily liable
for the payment of all sums owing and to be owing hereto. 

                           
7.           The Company
agrees to pay all costs and expenses, including reasonable attorneys' fees and
expenses, which may be incurred by the Holder in collecting any amount due under
this Note. 

3 

_____
Initials 

                           
8.           If one or more of
the following described "Events of Default" shall occur: 

                           
(a)           The Company
shall default in the payment of principal or interest on this Note or any other
note issued to the Holder by the Company; or 

                           
(b)           Any of the
representations or warranties made by the Company herein or in any certificate
or financial or other written statements heretofore or hereafter furnished by or
on behalf of the Company in connection with the execution and delivery of this
Note shall be false or misleading in any respect; or 

                           
(c)           The Company
shall fail to perform or observe, in any respect, any covenant, term, provision,
condition, agreement or obligation of the Company under this Note or any other
note issued to the Holder and not cure such breach within 10 days; or 

                           
(d)           The Company
shall (1) become insolvent; (2) admit in writing its inability to pay its debts
generally as they mature; (3) make an assignment for the benefit of creditors or
commence proceedings for its dissolution; (4) apply for or consent to the
appointment of a trustee, liquidator or receiver for its or for a substantial
part of its property or business; (5) file a petition for bankruptcy relief,
consent to the filing of such petition or have filed against it an involuntary
petition for bankruptcy relief, all under federal or state laws as applicable;
or 

                           
(e)           A trustee,
liquidator or receiver shall be appointed for the Company or for a substantial
part of its property or business without its consent and shall not be discharged
within thirty (30) days after such appointment; or 

                           
(f)           Any governmental
agency or any court of competent jurisdiction at the instance of any
governmental agency shall assume custody or control of the whole or any
substantial portion of the properties or assets of the Company; or 

                           
(g)           One or more
money judgments, writs or warrants of attachment, or similar process, in excess
of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed
against the Company or any of its properties or other assets and shall remain
unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) days or in
any event later than five (5) days prior to the date of any proposed sale
thereunder; or 

                           
(h)           After January 6,
2014, defaulted on or breached any term of any other note of similar debt
instrument into which the Company has entered and failed to cure such default
within the appropriate grace period; or 

                           
(i)           The Company
shall have its Common Stock delisted from an exchange (including the OTCBB
exchange) or, if the Common Stock trades on an exchange, then trading in the
Common Stock shall be suspended for more than 10 consecutive days;

                           
(j)           Intentionally
Deleted;

                           
(k)           The Company
shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3
business days of its receipt of a Notice of Conversion; or 

4 

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Initials 

                            (l)          
The Company shall not replenish the reserve set forth in Section 12, within 3
business days of the request of the Holder ; or 

                           
(m)           The Company’s
Common Stock has a closing bid price of less than $0.06 per share for at least 5
consecutive trading days; or 

                           
(n)           The aggregate
dollar trading volume of the Company’s Common Stock is less than twenty five
thousand dollars ($25,000.00) in any 5 consecutive trading days; or 

                           
(o)           The Company
shall cease to be “current” in its filings with the Securities and Exchange
Commission. 

Then, or at any time thereafter, unless cured (except for 8(m)
and 8(n) which are incurable defaults the sole remedy of which is to allow the
Holder to cancel offsetting back end notes issued to the Company), and in each
and every such case, unless such Event of Default shall have been waived in
writing by the Holder (which waiver shall not be deemed to be a waiver of any
subsequent default) at the option of the Holder and in the Holder's sole
discretion, the Holder may consider this Note immediately due and payable,
without presentment, demand, protest or (further) notice of any kind (other than
notice of acceleration), all of which are hereby expressly waived, anything
herein or in any note or other instruments contained to the contrary
notwithstanding, and the Holder may immediately, and without expiration of any
period of grace, enforce any and all of the Holder's rights and remedies
provided herein or any other rights or remedies afforded by law. Upon an Event
of Default, interest shall be accrue at a default interest rate of 24% per annum
or, if such rate is usurious or not permitted by current law, then at the
highest rate of interest permitted by law. Further, if the Note becomes due and
payable, the Holder may use the outstanding principal and interest due under the
Note to offset any payment obligations it may have to the Company. In the event
of a breach of 8(k) the penalty shall be $250 per day the shares are not issued
beginning on the 4th day after the conversion notice was delivered to
the Company. This penalty shall increase to $500 per day beginning on the
10th day. 

If the Holder shall commence an action or proceeding to enforce
any provisions of this Note, including without limitation engaging an attorney,
then the Holder shall be reimbursed by the Company for its attorneys’ fees and
other costs and expenses incurred in the investigation, preparation and
prosecution of such action or proceeding.

                            9.          
In case any provision of this Note is held by a court of competent jurisdiction
to be excessive in scope or otherwise invalid or unenforceable, such provision
shall be adjusted rather than voided, if possible, so that it is enforceable to
the maximum extent possible, and the validity and enforceability of the
remaining provisions of this Note will not in any way be affected or impaired
thereby. 

                           
10.         Neither this Note nor
any term hereof may be amended, waived, discharged or terminated other than by a
written instrument signed by the Company and the Holder. 

5 

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                            11.        
The Company represents that it is not a “shell” issuer and has never been a
“shell” issuer or that if it previously has been a “shell” issuer that at least
12 months have passed since the Company has reported form 10 type information
indicating it is no longer a “shell issuer. Further. The Company will instruct
its counsel to either (i) write a 144- 3(a)(9) opinion to allow for salability
of the conversion shares or (ii) accept such opinion from Holder’s counsel. 

                           
12.         Prior to cash funding of
this Note, The Company will issue irrevocable transfer agent instructions
reserving 4x the number of shares of Common Stock necessary to allow the holder
to convert this note based on the discounted conversion price set forth in
Section 4(a). The reserve shall be replenished as needed to allow for
conversions of this Note. Upon full conversion of this Note, the reserve
representing this Note shall be cancelled.

                           
13.         The Company will give the
Holder direct notice of any corporate actions including but not limited to name
changes, stock splits, recapitalizations etc. This notice shall be given to the
Holder as soon as possible under law.

                           
14.         This Note shall be governed
by and construed in accordance with the laws of New York applicable to contracts
made and wholly to be performed within the State of New York and shall be
binding upon the successors and assigns of each party hereto. The Holder and the
Company hereby mutually waive trial by jury and consent to exclusive
jurisdiction and venue in the courts of the State of New York. This Agreement
may be executed in counterparts, and the facsimile transmission of an executed
counterpart to this Agreement shall be effective as an original. 

6

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                            IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed by an
officer thereunto duly authorized. 

Dated: December 23, 2013 

NAKED BRAND GROUP, INC. 

    By:
__________________________________

Title:
__________________________________

7

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EXHIBIT A 

NOTICE OF CONVERSION 

(To be Executed by the Registered Holder in order to Convert the
Note) 

                             
The undersigned hereby irrevocably elects to convert $___________ of the above
Note into _________ Shares of Common Stock of Naked Brand Group, Inc. (“Shares”)
according to the conditions set forth in such Note, as of the date written
below. 

                              
If Shares are to be issued in the name of a person other than the undersigned,
the undersigned will pay all transfer and other taxes and charges payable with
respect thereto. 

Date of Conversion:
  __________________________________________________________________________________________

  Applicable
  Conversion Price:
  ___________________________________________________________________________________

  Signature:
  __________________________________________________________________________________________________

                                                   
  [Print Name of Holder and Title of Signer] 

  Address:
  __________________________________________________________________________________________________

SSN or EIN:
  __________________________________________________________

  Shares are to be
  registered in the following name:
  ____________________________________________________________________

Name:
  ______________________________________________________________

  Address:
  ____________________________________________________________

  Tel:
  ________________________________________________________________

  Fax:
  ________________________________________________________________

  SSN or EIN:
  __________________________________________________________

Shares are to be sent or delivered to the following account: 

Account Name:
  _____________________________________________________________________________________________

  Address:
  __________________________________________________________________________________________________

8

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