Document:

exv4w7

 

Exhibit 4.7

NEITHER THESE WARRANTS NOR THE COMMON STOCK ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE
SECURITIES LAWS AND MAY NOT BE SOLD, PLEDGED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE ACT OR UNLESS AN EXEMPTION FROM SUCH
REGISTRATION IS AVAILABLE.

	  
 	 	 
	1,200,000 Warrants
	 	January 18, 2006

THE FASHION HOUSE HOLDINGS, INC.

WARRANTS

     The Fashion House Holdings, Inc., Colorado corporation (“FHHI”), certifies that, for
value received, Trilogy Capital Partners, Inc. (“Trilogy”), or registered assigns (the “Holder”),
is the owner of One Million Two Hundred Thousand (1,200,000) Warrants of FHHI (the “Warrants”).
Each Warrant entitles the Holder to purchase from FHHI at any time prior to the Expiration Date (as
defined below) one share of the common stock of FHHI (the “Common Stock”) for $1.00 per share (the
“Exercise Price”), on the terms and conditions hereinafter provided. The Exercise Price and the
number of shares of Common Stock purchasable upon exercise of each Warrant are subject to
adjustment as provided in this Certificate.

1. Vesting; Expiration Date; Exercise

     1.1 Vesting. The Warrants shall vest and become exercisable as of the date of this
Certificate.

     1.2  Expiration Date. The Warrants shall expire on January 17, 2009 (the “Expiration
Date”).

     1.3 Manner of Exercise. The Warrants are exercisable by delivery to FHHI of the
following (the “Exercise Documents”): (a) this Certificate (b) a written notice of election to
exercise the Warrants; and (c) payment of the Exercise Price in cash, by check or by “net” exercise
as contemplated by Section 1.4 of this Certificate. Within three business days following receipt
of the foregoing, FHHI shall execute and deliver to the Holder: (a) a certificate or certificates
representing the aggregate number of shares of Common Stock purchased by the Holder, and (b) if
less than all of the Warrants evidenced by this Certificate are exercised, a new certificate
evidencing the Warrants not so exercised.

 

 

     1.4 Net Exercise. In lieu of the payment methods set forth in Section 1.3 above, the
Holder may elect to exchange all or some of the Warrant for the number of shares of Common Stock
computed using the following formula:

X = Y (A-B)

            A

Where X = the number of shares of Common Stock to be issued to Holder.

Y = the number of shares of Common Stock purchasable under the Warrants being
exchanged (as adjusted to the date of such calculation).

A = the Market Price on the date of receipt by FHHI of the exercise documents.

B = the Exercise Price of the Warrants being exchanged (as adjusted in accordance
with the terms of Section 2 hereof).

     The “Market Price” on any trading day shall be deemed to be the last reported sale
price of the Common Stock on such day, or, in the case no such reported sales take place on
such day, the last reported sale price on the preceding trading day on which there was a
last reported sales price, as officially reported by the principal securities exchange in
which the shares of Common Stock are listed or admitted to trading or by the Nasdaq Stock
Market, or if the Common Stock is not listed or admitted to trading on any national
securities exchange or the Nasdaq Stock Market, the last sale price, or if there is no last
sale price, the closing bid price, as furnished by the National Association of Securities
Dealers, Inc. (such as through the OTC Bulletin Board) or a similar organization or if
Nasdaq is no longer reporting such information. If the Market Price cannot be determined
pursuant to the sentence above, the Market Price shall be determined in good faith (using
customary valuation methods) by the Board of Directors of FHHI based on the information best
available to it, including recent arms-length sales of Common Stock to unaffiliated persons.

     1.5 Warrant Exercise Limitation. Notwithstanding any other provision of this
Agreement, if as of the date of exercise FHHI has a class of securities registered under Section 12
of the Securities Exchange Act of 1934, as amended, Holder may not exercise Warrants under this
Section 1 to the extent that immediately following such exercise Holder would beneficially own 5%
or more of the outstanding Common Stock of FHHI. For this purpose, a representation of the Holder
that following such exercise it would not beneficially own 5% or more of the outstanding Common
Stock of FHHI shall be conclusive and binding upon FHHI.

     1.6 Restriction on “Net” Exercise. Notwithstanding any other provision of this
Certificate, Holder shall not be permitted to effect a “net” exercise of the Warrants: (a) prior to
one year from the date hereof and (b) after one year from the date hereof if on the date of
exercise the resale of the underlying shares by Holder has been registered under the Securities Act
of 1933, as amended, pursuant to a registration statement which is then in effect, and on such date
the Holder shall be permitted to resell such shares pursuant to such registration statement, and
the Common Stock shall be listed or quoted for trading on the OTC Bulletin Board, the Nasdaq Stock
Market or an exchange or quotation system.

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2. Adjustments of Exercise Price and Number and Kind of Conversion Shares

     2.1 In the event that FHHI shall at any time hereafter (a) pay a dividend in Common Stock or
securities convertible into Common Stock; (b) subdivide or split its outstanding Common Stock; (c)
combine its outstanding Common Stock into a smaller number of shares; then the number of shares to
be issued immediately after the occurrence of any such event shall be adjusted so that the Holder
thereafter may receive the number of shares of Common Stock it would have owned immediately
following such action if it had exercised the Warrants immediately prior to such action and the
Exercise Price shall be adjusted to reflect such proportionate increases or decreases in the number
of shares.

     2.2 In case of any reclassification of the outstanding shares of Common Stock (other than a
change covered by Section 2.1 hereof or a change which solely affects the par value of such shares)
or in the case of any merger or consolidation or merger in which FHHI is not the continuing
corporation and which results in any reclassification or capital reorganization of the outstanding
shares), the Holder shall have the right thereafter (until the Expiration Date) to receive upon the
exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such
event, the kind and amount of shares of stock or other securities or property receivable upon such
reclassification, capital reorganization, merger or consolidation, by a Holder of the number of
shares of Common Stock obtainable upon the exercise of the Warrants immediately prior to such
event; and if any reclassification also results in a change in shares covered by Section 2.1, then
such adjustment shall be made pursuant to both this Section 2.2 and Section 2.1 (without
duplication). The provisions of this Section 2.2 shall similarly apply to successive
reclassifications, capital reorganizations and mergers or consolidations, sales or other transfers.

3. Reservation of Shares. FHHI shall at all times reserve and keep available out of its authorized
but unissued shares of Common Stock, such number of shares of Common Stock as shall from time to
time be issuable upon exercise of the Warrants. If at any time the number of authorized but
unissued shares of Common Stock shall not be sufficient to permit the exercise of the Warrants,
FHHI shall promptly seek such corporate action as may necessary to increase its authorized but
unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.

4. Certificate as to Adjustments. In each case of any adjustment in the Exercise Price, or number
or type of shares issuable upon exercise of these Warrants, the Chief Financial Officer of FHHI
shall compute such adjustment in accordance with the terms of these Warrants and prepare a
certificate setting forth such adjustment and showing in detail the facts upon which such
adjustment is based, including a statement of the adjusted Exercise Price. FHHI shall promptly
send (by facsimile and by either first class mail, postage prepaid or overnight delivery) a copy of
each such certificate to the Holder.

5. Loss or Mutilation. Upon receipt of evidence reasonably satisfactory to FHHI of the ownership
of and the loss, theft, destruction or mutilation of this Certificate, and of indemnity reasonably
satisfactory to it, and (in the case of mutilation) upon surrender and cancellation of these
Warrants, FHHI will execute and deliver in lieu thereof a new Certificate of like tenor as the
lost, stolen, destroyed or mutilated Certificate.

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6. Representations and Warranties of FHHI. FHHI hereby represents and warrants to Holder that:

     6.1 Due Authorization. All corporate action on the part of FHHI, its officers,
directors and shareholders necessary for (a) the authorization, execution and delivery of, and the
performance of all obligations of FHHI under, these Warrants, and (b) the authorization, issuance,
reservation for issuance and delivery of all of the Common Stock issuable upon exercise of these
Warrants, has been duly taken. These Warrants constitute a valid and binding obligation of FHHI
enforceable in accordance with their terms, subject, as to enforcement of remedies, to applicable
bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditors’ rights
generally and to general equitable principles.

     6.2 Organization. FHHI is a corporation duly organized, validly existing and in good
standing under the laws of the State referenced in the first paragraph of this Certificate and has
all requisite corporate power to own, lease and operate its property and to carry on its business
as now being conducted and as currently proposed to be conducted.

     6.3 Valid Issuance of Stock. Any shares of Common Stock issued upon exercise of these
Warrants will be duly and validly issued, fully paid and non-assessable.

     6.4 Governmental Consents. All consents, approvals, orders, authorizations or
registrations, qualifications, declarations or filings with any federal or state governmental
authority on the part of FHHI required in connection with the consummation of the transactions
contemplated herein have been obtained.

7. Representations and Warranties of Trilogy. Trilogy hereby represents and warrants to FHHI that:

     7.1 Trilogy is acquiring the Warrants for its own account, for investment purposes only.

     7.2 Trilogy understands that an investment in the Warrants involves a high degree of risk, and
Trilogy has the financial ability to bear the economic risk of this investment in the Warrants,
including a complete loss of such investment. Trilogy has adequate means for providing for its
current financial needs and has no need for liquidity with respect to this investment.

     7.3 Trilogy has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of an investment in the Warrants and in protecting its
own interest in connection with this transaction.

     7.4 Trilogy understands that the Warrants have not been registered under the Securities Act of
1933, as amended (the “Securities Act”) or under any state securities laws. Trilogy is familiar
with the provisions of the Securities Act and Rule 144 thereunder and understands that the
restrictions on transfer on the Warrants may result in Trilogy being required to hold the Warrants
for an indefinite period of time.

     7.5 Trilogy agrees not to sell, transfer, assign, gift, create a security interest in, or
otherwise dispose of, with or without consideration (collectively, “Transfer”) any of the Warrants
except pursuant to an effective registration statement under the Securities Act or an exemption
from registration. As a further condition to any such Transfer, except in the event that such
Transfer is made pursuant to an

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effective registration statement under the Securities Act, if in the reasonable opinion of
counsel to FHHI any Transfer of the Warrants by the contemplated transferee thereof would not be
exempt from the registration and prospectus delivery requirements of the Securities Act, FHHI may
require the contemplated transferee to furnish FHHI with an investment letter setting forth such
information and agreements as may be reasonably requested by FHHI to ensure compliance by such
transferee with the Securities Act.

8. Notices of Record Date

     In the event:

     8.1 FHHI shall take a record of the holders of its Common Stock (or other stock or securities
at the time receivable upon the exercise of these Warrants), for the purpose of entitling them to
receive any dividend or other distribution, or any right to subscribe for or purchase any shares of
stock of any class or any other securities or to receive any other right; or

     8.2 of any consolidation or merger of FHHI with or into another corporation, any capital
reorganization of FHHI, any reclassification of the capital stock of FHHI, or any conveyance of all
or substantially all of the assets of FHHI to another corporation in which holders of FHHI’s stock
are to receive stock, securities or property of another corporation; or

     8.3 of any voluntary dissolution, liquidation or winding-up of FHHI; or

     8.4 of any redemption or conversion of all outstanding Common Stock;

then, and in each such case, FHHI will mail or cause to be mailed to the Holder a notice
specifying, as the case may be, (a) the date on which a record is to be taken for the purpose of
such dividend, distribution or right, or (b) the date on which such reorganization,
reclassification, consolidation, merger, conveyance, dissolution, liquidation, winding-up,
redemption or conversion is to take place, and the time, if any is to be fixed, as of which the
holders of record of Common Stock (or such stock or securities as at the time are receivable upon
the exercise of these Warrants), shall be entitled to exchange their shares of Common Stock (or
such other stock or securities), for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or
winding-up. FHHI shall use all reasonable efforts to ensure such notice shall be delivered at
least 15 days prior to the date therein specified.

9. Registration Rights.

     9.1 Definitions. For purposes of this Section 9, the following terms shall have the
meanings set forth below:

          9.1.1 A “Blackout Event” means any of the following: (a) the possession by FHHI of material
information that is not ripe for disclosure in a registration statement or prospectus, as
determined reasonably and in good faith by the Chief Executive Officer or the Board of Directors of
FHHI or that disclosure of such information in the Registration Statement or the prospectus
constituting a part thereof would be materially detrimental to the business and affairs of FHHI; or
(b) any material engagement or activity by FHHI which would, in the reasonable and good faith

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determination of the Chief Executive Officer or the Board of Directors of FHHI, be materially
adversely affected by disclosure in a registration statement or prospectus at such time.

          9.1.2 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          9.1.3 “Included Shares” shall mean any Registrable Shares included in a Registration.

          9.1.4 “Registrable Shares” shall mean the shares of Common Stock (or such stock or securities
as at the time are receivable upon the exercise of these Warrants) issuable upon exercise of the
Warrants and any other warrants and or other securities issued to Trilogy in connection with
performing investor relations services for FHHI, and shares or securities issued as a result of
stock split, stock dividend or reclassification of such shares.

          9.1.5 “Registration” shall mean a registration of securities under the Securities Act pursuant
to Section 9.2 or 9.3 of this Agreement.

          9.1.6 “Registration Period” with respect to any Registration Statement the period commencing
the effective date of the Registration Statement and ending upon withdrawal or termination of the
Registration Statement.

          9.1.7 “Registration Statement” shall mean the registration statement, as amended from time to
time, filed with the SEC in connection with a Registration.

          9.1.8 “SEC” shall mean the Securities and Exchange Commission.

     9.2 Demand Registration. At the time FHHI completes the financing, but no later than
April 18, 2006, FHHI shall prepare and file with the SEC a Registration Statement for the purpose
of registering the sale of the Registrable Shares under the Securities Act, and shall use its
commercially reasonable efforts to cause the Registration Statement to become effective within 60
days of the date of filing. Once effective, FHHI shall prepare and file with the SEC such
amendments and supplements to the Registration Statement and the prospectus forming a part thereof
as may be necessary to keep the Registration Statement effective until the earliest date on which
(a) all the Included Shares have been disposed of pursuant to the Registration Statement, or (b)
all of the Included Shares then held by Holder may be sold under the provisions of Rule 144 without
limitation as to volume, whether pursuant to Rule 144(k) or otherwise.

     9.3 Piggyback Registration. Unless the Registrable Shares are then included in a
Registration Statement or can be sold under the provisions of Rule 144 without limitation as to
volume, whether pursuant to Rule 144(k) or otherwise, if FHHI shall determine to register any
Common Stock under the Securities Act for sale in connection with a public offering of Common Stock
(other than pursuant to an employee benefit plan or a merger, acquisition or similar transaction),
FHHI will give written notice thereof to Holder and will include in such Registration Statement any
of the Registrable Shares which Holder may request be included (“Included Shares”) by a writing
delivered to FHHI within 15 days after the notice given by FHHI to Holder; provided, however, that
if the offering is to be firmly underwritten, and the representative of the underwriters of the
offering refuse in writing to include in the offering all of the shares of Common Stock requested
by FHHI and others, the shares to be included shall be allocated first to FHHI and any shareholder
who initiated such Registration and then among the others based on the respective number of shares
of Common Stock held by such persons. If

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FHHI decides not to, and does not, file a Registration Statement with respect to such
Registration, or after filing determines to withdraw the same before the effective date thereof,
FHHI will promptly so inform Holder, and FHHI will not be obligated to complete the registration of
the Included Shares included therein.

     9.4 Certain Covenants. In connection with any Registration:

          9.4.1 FHHI shall take all lawful action such that the Registration Statement, any amendment
thereto and the prospectus forming a part thereof does not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they are made, not misleading.
Upon becoming aware of the occurrence of any event or the discovery of any facts during the
Registration Period that make any statement of a material fact made in the Registration Statement
or the related prospectus untrue in any material respect or which material fact is omitted from the
Registration Statement or related prospectus that requires the making of any changes in the
Registration Statement or related prospectus so that it will not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein, in light
of the circumstances under which they are made, not misleading (taking into account any prior
amendments or supplements), FHHI shall promptly notify Holder, and, subject to the provisions of
Section 9.5, as soon as reasonably practicable prepare (but, subject to Section 9.5, in no event
more than five business days in the case of a supplement or seven business days in the case of a
post-effective amendment) and file with the SEC a supplement or post-effective amendment to the
Registration Statement or the related prospectus or file any other required document so that, as
thereafter delivered to a purchaser of Shares from Holder, such prospectus will not contain any
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading.

          9.4.2 At least three business days prior to the filing with the SEC of the Registration
Statement (or any amendment thereto) or the prospectus forming a part thereof (or any supplement
thereto), FHHI shall provide draft copies thereof to Holder and shall consider incorporating into
such documents such comments as Holder (and its counsel) may propose to be incorporated therein.
Notwithstanding the foregoing, no prospectus supplement, the form of which has previously been
provided to Holder, need be delivered in draft form to Holder.

          9.4.3 FHHI shall promptly notify Holder upon the occurrence of any of the following events in
respect of the Registration Statement or the prospectus forming a part thereof: (a) the receipt of
any request for additional information from the SEC or any other federal or state governmental
authority, the response to which would require any amendments or supplements to the Registration
Statement or related prospectus; (b) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of the Registration Statement
or the initiation of any proceedings for that purpose; or (c) the receipt of any notification with
respect to the suspension of the qualification or exemption from qualification of any of the Shares
for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose.

          9.4.4 FHHI shall furnish to Holder with respect to the Included Shares registered under the
Registration Statement (and to each underwriter, if any, of such Shares) such number of copies of
prospectuses and such other documents as Holder may reasonably request, in order to

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facilitate the public sale or other disposition of all or any of the Included Shares by Holder
pursuant to the Registration Statement.

          9.4.5 In connection with any registration pursuant to Section 9.2, FHHI shall file or cause to
be filed such documents as are required to be filed by FHHI for normal Blue Sky clearance in states
specified in writing by Holder; provided, however, that FHHI shall not be required
to qualify to do business or consent to service of process in any jurisdiction in which it is not
now so qualified or has not so consented.

          9.4.6 FHHI shall bear and pay all expenses incurred by it and Holder (other than underwriting
discounts, brokerage fees and commissions and fees and expenses of more than one law firm) in
connection with the registration of the Shares pursuant to the Registration Statement.

          9.4.7 FHHI shall require each legal opinion and accountant’s “cold comfort” letter in
connection with the Registration, if any, to be rendered to Holder as well as FHHI and/or its Board
of Directors.

          9.4.8 As a condition to including Registrable Shares in a Registration Statement, Holder must
provide to FHHI such information regarding itself, the Registrable Shares held by it and the
intended method of distribution of such Shares as shall be required to effect the registration of
the Registrable Shares and, if the offering is being underwritten, Holder must provide such powers
of attorney, indemnities and other documents as may be reasonably requested by the managing
underwriter.

          9.4.9 Following the effectiveness of the Registration Statement, upon receipt from FHHI of a
notice that the Registration Statement contains an untrue statement of material fact or omits to
state any material fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances under which they were made, Holder will immediately
discontinue disposition of Included Shares pursuant to the Registration Statement until FHHI
notifies Holder that it may resume sales of Included Shares and, if necessary, provides to Holder
copies of the supplemental or amended prospectus.

     9.5 Blackout Event. FHHI shall not be obligated to file a post-effective amendment or
supplement to the Registration Statement or the prospectus constituting a part thereof during the
continuance of a Blackout Event; provided, however, that no Blackout Event may be deemed to exist
for more than 60 days. Without the express written consent of Holder, if required to permit the
continued sale of Shares by Holder, a post-effective amendment or supplement to Registration
Statement or the prospectus constituting a part thereof must be filed no later than the
61st day following commencement of a Blackout Event.

     9.6 Rule 144. With a view to making available to Holder the benefits of Rule 144, FHHI
agrees, until such time as Holder can sell all remaining Registrable Shares under the provisions
Rule 144(k), to:

          9.6.1.1 comply with the provisions of paragraph (c)(1) of Rule 144; and

          9.6.1.2 file with the SEC in a timely manner all reports and other documents required to be
filed by FHHI pursuant to Section 13 or 15(d) under the Exchange Act; and, if at any time it is not
required to file such reports but in the past had been required to or did file such reports, it

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will, upon the request of a Purchaser, make available other information as required by, and so
long as necessary to permit sales of its Shares pursuant to, Rule 144.

     9.7 FHHI Indemnification. FHHI agrees to indemnify and hold harmless Holder, and its
officers, directors and agents (including broker or underwriter selling Included Shares for
Holder), and each person, if any, who controls Holder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims,
damages and liabilities caused by (a) any violation or alleged violation by FHHI of the Securities
Act, Exchange Act, any state securities laws or any rule or regulation promulgated under the
Securities Act, Exchange Act or any state securities laws, (b) any untrue statement or alleged
untrue statement of a material fact contained in any registration statement or prospectus relating
to the Included Shares (as amended or supplemented if FHHI shall have furnished any amendments or
supplements thereto) or any preliminary prospectus, or (c) caused by any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances under which they were made, except
insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or
omission or alleged untrue statement or omission based upon information furnished in writing to
FHHI by Holder or on Holder’s behalf expressly for use therein.

     9.8 Holder Indemnification. Holder agrees to indemnify and hold harmless FHHI, its
officers, directors and agents and each person, if any, who controls FHHI within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the
foregoing indemnity from FHHI to Holder, but only with respect to information furnished in writing
by Holder or on Holder’s behalf expressly for use in any registration statement or prospectus
relating to the Registrable Shares, or any amendment or supplement thereto, or any preliminary
prospectus. 

     9.9 Indemnification Procedures. In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which indemnity may be sought
pursuant to this Section 9, such person (an “Indemnified Party”) shall promptly notify the person
against whom such indemnity may be sought (the “Indemnifying Party”) in writing and the
Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably
satisfactory to such Indemnified Party, and shall assume the payment of all fees and expenses;
provided that the failure of any Indemnified Party so to notify the Indemnifying Party shall not
relieve the Indemnifying Party of its obligations hereunder except to the extent (and only to the
extent that) that the Indemnifying Party is materially prejudiced by such failure to notify. In
any such proceeding, any Indemnified Party shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (a) the
Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such
counsel or (b) in the reasonable judgment of such Indemnified Party representation of both parties
by the same counsel would be inappropriate due to actual or potential differing interests between
them. It is understood that the Indemnifying Party shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) at any time for all
such Indemnified Parties (including in the case of Holder, all of its officers, directors and
controlling persons) and that all such fees and expenses shall be reimbursed as they are incurred.
In the case of any such separate firm for the Indemnified Parties, the Indemnified Parties shall
designate such firm in writing to the Indemnifying Party. The Indemnifying Party shall not be
liable for any settlement of any proceeding effected without its written consent (which consent
shall not be unreasonably withheld or delayed), but if settled with such consent, or if there be a
final judgment for the plaintiff, the Indemnifying Party shall indemnify and hold harmless such

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Indemnified Parties from and against any loss or liability (to the extent stated above) by
reason of such settlement or judgment. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any pending or threatened proceeding in
respect of which any Indemnified Party is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Party, unless such settlement includes an unconditional
release of such Indemnified Party from all liability arising out of such proceeding.

     9.10 Contribution. To the extent any indemnification by an Indemnifying Party is
prohibited or limited by law, the Indemnifying Party agrees to make the maximum contribution with
respect to any amounts for which, he, she or it would otherwise be liable under this Section 9 to
the fullest extent permitted by law; provided, however, that (a) no contribution shall be made
under circumstances where a party would not have been liable for indemnification under this Section
9 and (b) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the
meaning used in the Securities Act) shall be entitled to contribution from any party who was not
guilty of such fraudulent misrepresentation.

10. Nontransferability. Trilogy may not sell or transfer any Warrants to any person other than a
director, officer, employee, manager or affiliate of Trilogy (or a person controlled by one or more
directors, officers, employees, managers or affiliates of Trilogy) or to a person or entity that
assists Trilogy in providing services to FHHI pursuant to the Letter of Engagement dated January
18, 2006 as the same may be amended from time to time, without the consent of FHHI.

11. Severability. If any term, provision, covenant or restriction of these Warrants is held by a
court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of these Warrants shall remain in full force and effect and
shall in no way be affected, impaired or invalidated.

12. Notices. All notices, requests, consents and other communications required hereunder shall be
in writing and shall be effective when delivered or, if delivered by registered or certified mail,
postage prepaid, return receipt requested, shall be effective on the third day following deposit in
United States mail: to the Holder, at Trilogy Capital Partners, Inc., 11726 San Vicente Boulevard,
Suite 235, Los Angeles, CA 90049; and if addressed to FHHI, at The Fashion House Holdings, Inc.,
6310 San Vicente Boulevard, Suite 330, Los Angeles, CA 90048 or such other address as Holder or
FHHI may designate in writing.

13. No Rights as Shareholder. The Holder shall have no rights as a shareholder of FHHI with
respect to the shares issuable upon exercise of the Warrants until the receipt by FHHI of all of
the Exercise Documents.

	 	 	 	 	 
	 	The Fashion House Holdings, Inc.

 
 	 
	 	By:  	 	 
	 	 	John Hanna, Chief Executive Officer 	 
	 	 	 	 

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EXHIBIT “A”

NOTICE OF EXERCISE

(To be signed only upon exercise of the Warrants)

To: The Fashion House Holdings, Inc.

     The undersigned hereby elects to purchase shares of Common Stock (the “Warrant Shares”) of The
Fashion House Holdings, Inc. (“FHHI”), pursuant to the terms of the enclosed warrant certificate
(the “Certificate”). The undersigned tenders herewith payment of the exercise price pursuant to
the terms of the Certificate.

     The undersigned hereby represents and warrants to, and agrees with, FHHI as follows:

     1. Holder is acquiring the Warrant Shares for its own account, for investment purposes only.

     2. Holder understands that an investment in the Warrant Shares involves a high degree of risk,
and Holder has the financial ability to bear the economic risk of this investment in the Warrant
Shares, including a complete loss of such investment. Holder has adequate means for providing for
its current financial needs and has no need for liquidity with respect to this investment.

     3. Holder has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of an investment in the Warrant Shares and in protecting
its own interest in connection with this transaction.

     4. Holder understands that the Warrant Shares have not been registered under the Securities
Act or under any state securities laws. Holder is familiar with the provisions of the Securities
Act and Rule 144 thereunder and understands that the restrictions on transfer on the Warrant Shares
may result in Holder being required to hold the Warrant Shares for an indefinite period of time.

     5. Holder agrees not to sell, transfer, assign, gift, create a security interest in, or
otherwise dispose of, with or without consideration (collectively, “Transfer”) any of the Warrant
Shares except pursuant to an effective registration statement under the Securities Act or an
exemption from registration. As a further condition to any such Transfer, except in the event that
such Transfer is made pursuant to an effective registration statement under the Securities Act, if
in the reasonable opinion of counsel to FHHI any Transfer of the Warrant Shares by the contemplated
transferee thereof would not be exempt from the registration and prospectus delivery requirements
of the Securities Act, FHHI may require the contemplated transferee to furnish FHHI with an
investment letter setting forth such information and agreements as may be reasonably requested by
FHHI to ensure compliance by such transferee with the Securities Act.

 

 

     Each certificate evidencing the Warrant Shares will bear the following legend:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933 (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE EXERCISED, SOLD, PLEDGED
OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
ACT OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

     6. Immediately following this exercise of Warrants, if as of the date of exercise FHHI has a
class of securities registered under Section 12 of the Securities Exchange Act of 1934, as
amended, the undersigned will not beneficially own five percent (5%) or more of the then
outstanding Common Stock of FHHI (based on the number of shares outstanding set forth in the most
recent periodic report filed by FHHI with the Securities and Exchange Commission and any additional
shares which have been issued since that date of which Holder is aware have been issued).

Number of Warrants Exercised: ______________

Net Exercise ____ Yes ____ No

Dated: ____________________

 

 

- 2 -exv4w8

 

Exhibit 4.8

The securities represented by this Warrant and issuable upon exercise hereof have not been
registered under the Securities Act of 1933, as amended (the “Act”), or under the provisions of any
applicable state securities laws, but have been acquired by the registered holder hereof for
purposes of investment and in reliance on statutory exemptions under the Act, and under any
applicable state securities laws. These securities and the securities issued upon exercise hereof
may not be sold, pledged, transferred or assigned, nor may this Warrant be exercised, except in a
transaction which is exempt under the provisions of the Act and any applicable state securities
laws or pursuant to an effective registration statement.

COMMON STOCK PURCHASE WARRANT

	 	 	 
	Date of Issuance:                     , 2006

	 	Certificate No.                    

     For value received, The Fashion House Holdings, Inc., a Colorado corporation (the
“Company”), hereby grants to                                         , or its permitted transferees and assigns
(“Holder”), the right to purchase from the Company a total
of                      shares of the Company’s common
stock (“Common Stock”), at a price per share of equal to $1.00 (the “Initial Exercise
Price”). The exercise price and number of Warrant Shares (and the amount and kind of other
securities) for which this Warrant is exercisable shall be subject to adjustment as provided in
Section 2 hereof. This Warrant is being issued in connection with the Loan Agreement between
Holder and the Company of even date herewith (the “Loan Agreement”). Certain capitalized
terms used herein are defined in Section 4 hereof.

     This Warrant is subject to the following provisions:

     SECTION 1. Exercise of Warrant.

          (a) Terms of Warrants; Exercise Period. Subject to the terms of this Agreement, the
Registered Holder shall have the right, commencing on the date hereof and expiring on the 10 year
anniversary hereof (the “Expiration Date”), to exercise this Warrant, in whole or in part,
and receive from the Company the number of Warrant Shares which the Registered Holder may at the
time be entitled to receive on exercise of this Warrant and payment of the Exercise Price then in
effect for the Warrant Shares. To the extent not exercised prior to the Expiration Date, this
Warrant shall become void and all rights thereunder and all rights in respect thereof under this Agreement
shall cease as of such time.

          (b) Exercise Procedure.

               (i) This Warrant shall be deemed to have been exercised on the date specified in a written
notice from the Registered Holder to the Company (the “Exercise Time”) and

 

 

within three business days following the Exercise Time, the Registered Holder shall deliver the following to the
Company:

               (A) a completed Exercise Agreement, as described in Section 1(c) below;

               (B) this Warrant;

               (C) if this Warrant is not registered in the name of the Registered Holder, an Assignment or
Assignments in the form set forth in Exhibit II hereto evidencing the assignment of this
Warrant to the Registered Holder, in which case the Registered Holder shall have complied with the
provisions set forth in Section 6 hereof; and

               (D) either (x) a check payable to the Company in an amount equal to the product of the
Exercise Price (as such term is defined in Section 2) multiplied by the number of Warrant Shares
being purchased upon such exercise (the “Aggregate Exercise Price”), (y) the surrender to
the Company of shares of Common Stock of the Company having a Fair Market Value equal to the
Aggregate Exercise Price, or (z) the delivery of a notice to the Company that the Registered Holder
is exercising the Warrant by authorizing the Company to reduce the number of Warrant Shares subject
to the Warrant by that number of shares having an aggregate Fair Market Value in excess of the
total Exercise Price for such shares equal to the Aggregate Exercise Price.

               (ii) Certificates for Warrant Shares purchased upon exercise of this Warrant shall be
delivered by the Company to the Registered Holder within five business days after the date of the
Exercise Time. Unless this Warrant has expired or all of the purchase rights represented hereby
have been exercised, the Company shall prepare a new Warrant, substantially identical hereto,
representing the rights formerly represented by this Warrant that have not expired or been
exercised and shall, within such five day period, deliver such new Warrant to the Person designated
for delivery in the Exercise Agreement.

               (iii) The Warrant Shares issuable upon the exercise of this Warrant shall be deemed to have
been issued to the Registered Holder at the Exercise Time, and the Registered Holder shall be
deemed for all purposes to have become the record holder of such Warrant Shares at the Exercise
Time.

               (iv) The Company shall not close its books against the transfer of this Warrant or of any
Warrant Shares issued or issuable upon the exercise of this Warrant in any manner which interferes
with the timely exercise of this Warrant.

               (v) The Company shall assist and cooperate with the Registered Holder or any Registered Holder
required to make any governmental filings or obtain any governmental approvals prior to or in
connection with any exercise of this Warrant.

2

 

               (vi) The Company shall at all times reserve and keep available out of its authorized but
unissued capital stock, solely for the purpose of issuance upon the exercise of this Warrant, the
maximum number of Warrant Shares issuable upon the exercise of this Warrant. All Warrant Shares
which are so issuable shall, when issued and upon the payment of the Exercise Price therefor, be
duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges.
The Company shall take all such actions as may be necessary to assure that all such Warrant Shares
may be so issued without violation by the Company of any applicable law or governmental regulation
or any requirements of any domestic securities exchange upon which securities of the Company may be
listed (except for official notice of issuance which shall be immediately delivered by the Company
upon each such issuance).

          (c) Exercise Agreement. Upon any exercise of this Warrant, the Registered Holder
shall deliver an Exercise Agreement in the form set forth in Exhibit I hereto, except that
if the Warrant Shares are not to be issued in the name of the Person in whose name this Warrant is
registered, the Exercise Agreement shall also state the name of the Person to whom the certificates
for the Warrant Shares are to be issued, and if the number of Warrant Shares to be issued does not
include all the Warrant Shares purchasable hereunder, it shall also state the name of the Person to
whom a new Warrant for the unexercised portion of the rights hereunder is to be issued. Such
Exercise Agreement shall be dated the actual date of execution thereof.

     SECTION 2. Adjustment of Exercise Price and Number of Shares. In order to prevent
dilution of the rights granted under this Warrant, the Initial Exercise Price shall be subject to
adjustment from time to time as provided in this Section 2 (such price or such price as last
adjusted pursuant to the terms hereof, as the case may be, is herein called the “Exercise
Price”), and the number of Warrant Shares obtainable upon exercise of this Warrant shall be
subject to adjustment from time to time as provided in this Section 2.

          (a) Reorganization, Reclassification, Consolidation, Merger or Sale. In case of any
reclassification, capital reorganization, consolidation, merger, sale of all or substantially all
of the Company’s assets to another Person or any other change in the Common Stock of the Company,
other than as a result of a subdivision, combination, or stock dividend provided for in Section
2(b) below (any of which, a “Change Event”), then, as a condition of such Change Event,
lawful provision shall be made, and duly executed documents evidencing the same from the Company or
its successor shall be delivered to the Registered Holder, so that the Registered Holder shall have
the right at any time prior to the expiration of this Warrant to purchase, at a total price equal
to that payable upon the exercise of this Warrant (subject to adjustment of the Exercise Price as provided in Section
2), the kind and amount of shares of stock and other securities and property receivable in
connection with such Change Event by a holder of the same number of shares of Common Stock as were
purchasable by the Registered Holder immediately prior to such Change Event. In any such case
appropriate provisions shall be made with respect to the rights and interest of the Registered
Holder so that the provisions hereof shall thereafter be applicable with respect to any shares of
stock or other securities and property deliverable upon exercise hereof, and appropriate
adjustments shall be made to the

3

 

purchase price per share payable hereunder, provided the aggregate
purchase price shall remain the same.

          (b) Subdivisions, Combinations and Other Issuances. If the Company shall at any time
prior to the expiration of this Warrant (i) subdivide its Common Stock, by split-up or otherwise,
or combine its Common Stock, or (ii) issue additional shares of its Common Stock or other equity
securities as a dividend with respect to any shares of its Common Stock, the number of shares of
Common Stock issuable on the exercise of this Warrant shall forthwith be proportionately increased
in the case of a subdivision or stock, or proportionately decreased in the case of a combination.
Appropriate adjustments shall also be made to the purchase price payable per share, but the
aggregate purchase price payable for the total number of Warrant Shares purchasable under this
Warrant (as adjusted) shall remain the same. Any adjustment under this Section 2(b) shall become
effective at the close of business on the date the subdivision or combination becomes effective, or
as of the record date of such dividend, or in the event that no record date is fixed, upon the
making of such dividend.

          (c) Issuance of New Warrant. Upon the occurrence of any of the events listed in this
Section 2 that results in an adjustment of the type, number or exercise price of the securities
underlying this Warrant, the Registered Holder shall have the right to receive a new warrant
reflecting such adjustment upon the Registered Holder tendering this Warrant in exchange. The new
warrant shall otherwise have terms identical to this Warrant.

          (d) Notices.

               (i) The Company shall give written notice to the Registered Holder of this Warrant at least 10
days prior to the date on which the Company closes its books or takes a record for determining
rights to vote with respect to any event described in this Section 2 or any dissolution or
liquidation.

               (ii) The Company shall also give written notice to the Registered Holder of this Warrant at
least 10 days prior to the date on which any event described in this Section 2 or any dissolution
or liquidation shall take place.

     SECTION 3. Registration Rights.

          (a) Piggyback Registration.

               (i) If, at any time commencing on the date hereof and expiring on the Expiration Date, the
Company prepares and files a Registration Statement under the Act or otherwise registers securities
under the Act as to any of its securities (other than under a Registration Statement pursuant to
Form S-8 or Form S-4) (each such filing, a “Registration Document”), it will give written
notice by registered mail, at least 20 days prior to the filing of such Registration Document to
the Registered Holders of the Registrable Securities of its intention to do so. The Company shall
include

4

 

all Registrable Securities in such Registration Documents with respect to which the Company
has received written requests for inclusion therein within 15 days of actual receipt of the
Company’s notice.

               (ii) Subject to the Loan Agreement, the Company shall have the right at any time after it
shall have given written notice pursuant to this Section 3(a) (irrespective of whether a written
request for inclusion of any Registration Securities shall have been made) to elect not to file any
such Registration Document, or to withdraw the same after the filing but prior to the effective
date thereof.

          (b) Covenants of the Company with Respect to Registration. In connection with the
filing of any Registration Document by the Company, the Company covenants and agrees as follows:

               (i) The Company shall use its best efforts to have any registration statement declared
effective at the earliest practicable time. The Company will promptly notify each Registered
Holder of such Registrable Securities and confirm such advice in writing, (i) when such
registration statement becomes effective, (ii) when any post-effective amendment to such
registration statement becomes effective and (iii) of any request by the SEC for any amendment or
supplement to such registration statement or any prospectus relating thereto or for additional
information.

               (ii) The Company shall furnish to each Registered Holder of such Registrable Securities such
number of copies of such registration statement and of each such amendment and supplement thereto
(in each case including each preliminary prospectus and summary prospectus) in conformity with the
requirements of the Act, and such other documents as the Registered Holders may reasonably request
in order to facilitate the disposition of the Registrable Securities by such Registered Holders.

               (iii) If the Company shall fail to comply with the provisions of Sections 3(a) and 3(b), the
Company shall, in addition to any other equitable or other relief available to the Registered
Holder(s), be liable for any or all special and consequential damages sustained by the Registered
Holder(s) requesting registration of their Registrable Securities.

               (iv) The Company shall prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be reasonably
necessary to keep such registration statement effective for at least 12 months (or such longer
period as permitted by the Act), and to comply with the provisions of the Act with respect to the disposition of all securities covered by such registration statement during
such period in accordance with the intended methods of disposition by the Registered Holder or
Registered Holders of Registrable Securities set forth in such registration statement. If at any
time the SEC should institute or threaten to institute any proceedings for the purpose of issuing a
stop order suspending the effectiveness of any such registration statement, the Company will
promptly notify each Registered Holder of Registrable Securities and will use all reasonable
efforts to prevent the

5

 

issuance of any such stop order or to obtain the withdrawal thereof as soon
as possible. The Company will use its good faith reasonable efforts and take all reasonably
necessary action which may be required in qualifying or registering the Registrable Securities
included in a registration statement for offering and sale under the securities or blue sky laws of
such states as reasonably are required by the Registered Holder(s), provided that the Company shall
not be obligated to execute or file any general consent to service of process or to qualify as a
foreign corporation to do business under the laws of any such jurisdiction. The Company shall use
its good faith reasonable efforts to cause such Registrable Securities covered by such registration
statement to be registered with or approved by such other governmental agencies or authorities of
the United States or any State thereof as may be reasonably necessary to enable the Registered
Holder(s) thereof to consummate the disposition of such Registrable Securities.

               (v) The Company shall indemnify the Registered Holder(s) of the Registrable Securities to be
sold pursuant to any registration statement and each person, if any, who controls such Registered
Holders within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act against
all loss, claim, damage, expense or liability (including all expenses reasonably incurred in
investigating, preparing or defending against any claim whatsoever) to which any of them may become
subject under the Act, the Exchange Act or otherwise, arising from such registration statement.

               (vi) If requested by the Company prior to the filing of any registration statement covering
the Registrable Securities, each of the Registered Holder(s) of the Registrable Securities to be
sold pursuant to a registration statement, and their successors and assigns, shall severally, and
not jointly, indemnify the Company, its officers and directors and each person, if any, who
controls the Company within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
Act, against all loss, claim, damage or expense or liability (including all expenses reasonably
incurred in investigating, preparing or defending against any claim whatsoever) to which they may
become subject under the Act, the Exchange Act or otherwise, arising from written information
furnished by such Registered Holder, or their successors or assigns, for specific inclusion in such
registration statement, except that the maximum amount which may be recovered from each Registered
Holder pursuant to this paragraph or otherwise shall be limited to the amount of net proceeds
received by the Registered Holder from the sale of the Registrable Securities.

               (vii) Nothing contained in this Agreement shall be construed as requiring the Registered
Holder(s) to exercise their Warrants prior to the filing of any registration statement or the
effectiveness thereof.

               (viii) The Company shall furnish to each Registered Holder participating in an offering and to
the managing underwriter, if any, a signed counterpart, addressed to such Registered Holder or
underwriter, of (i) an opinion of counsel to the Company, dated the effective date of such
registration statement (and, if such registration includes an underwritten public offering, an
opinion dated the date of the closing under the underwriting agreement), and (ii) a “Cold Comfort”
letter dated the effective date of such registration statement (and, if such registration

6

 

includes an underwritten public offering, a letter dated the date of the closing under the underwriting
agreement) signed by the independent public accountants who have issued a report on the Company’s
financial statements included in such registration statement, in each case covering substantially
the same matters with respect to such registration statement (and the prospectus included therein)
and, in the case of such accountants’ letter, with respect to events subsequent to the date of such
financial statements, as are customarily covered in opinions of issuer’s counsel and in
accountants’ letters delivered to underwriters in underwritten public offerings of securities.

               (ix) The Company shall deliver promptly to each Registered Holder participating in an offering
and to the managing underwriter, if any, copies of all correspondence between the SEC and the
Company, its counsel or auditors and all non-privileged memoranda relating to discussions with the
SEC or its staff with respect to the registration statement and permit each Registered Holder and
underwriter to do such investigation, upon reasonable advance notice, with respect to information
contained in or omitted from the registration statement as it deems reasonably necessary to comply
with applicable securities laws or rules of the NASD. Such investigation shall include access to
books, records and properties and opportunities to discuss the business of the Company with its
officers and independent auditors, all to such reasonable extent and at such reasonable times and
as often as any such Registered Holder shall reasonably request.

               (x) The Company shall not, directly or indirectly, enter into any merger, business combination
or consolidation in which (i) the Company shall not be the surviving corporation and (ii) the
shareholders of the Company are to receive, in whole or in part, capital stock or other securities
of the surviving corporation, unless the surviving corporation shall, prior to such merger,
business combination or consolidation, agree in writing to assume the obligations of the Company
under this Agreement, and for that purpose references hereunder to “Registrable Securities”
shall be deemed to include the securities which the Registered Holders would be entitled to receive
in exchange for Registrable Securities under any such merger, business combination or
consolidation, provided that to the extent such securities to be received are convertible into
shares of Common Stock of the issuer thereof, then any such shares of Common Stock as are issued or
issuable upon conversion of said convertible securities shall also be included within the
definition of “Registrable Securities.”

               (xi) In the event of an underwritten registered offering the managing underwriter(s) advise
the Company in writing that in their opinion the number of Registrable Securities exceeds the
number of Registrable Securities which can be sold therein without adversely affecting the
marketability of the offering, the Company will include in such registration the number of
Registrable Securities requested to be included which in the opinion of such underwriter(s)
can be sold without adversely affecting the marketability of the offering, pro rata among the
respective holders thereof on the basis of the amount of Registrable Securities owned by each such
holder. In the event the number of shares available under a registration statement filed pursuant
to Section 3(a) is insufficient to cover 100% of the Registrable Securities required to be covered
by such Registration Statement, the Company shall amend the registration statement, or file a new

7

 

registration statement (on the short form available therefor, if applicable), or both, so as to
cover 100% of the number of such Registrable Securities as of the trading day immediately preceding
the date of the filing of such amendment or new registration statement, in each case, as soon as
practicable, but in any event not later than 45 days after the necessity therefor arises. The
Company shall use it reasonable best efforts to cause such amendment or new registration statement
to become effective as soon as practicable following the filing thereof.

               (xii) All expenses incident to the Company’s performance of or compliance with this Agreement,
including without limitation all registration and filing fees, fees and expenses of compliance with
securities or blue sky laws, printing expenses, messenger and delivery expenses, and fees and
disbursements of counsel for the Company and all independent certified public accountants,
underwriters (excluding discounts and commissions) and other Persons retained by the Company will
be borne by the Company. In no event shall the Company be obligated to be pay any discounts or
commissions with respect to the shares sold by any holder of Registrable Securities. In connection
with each Registration Document, the Company will reimburse the holders of Registrable Securities
covered by such registration for the reasonable fees and disbursements of one counsel chosen by the
holders of a majority of the Registrable Securities initially requesting such registration.

     SECTION 4. Definitions. The following terms have the meanings set forth below:

     “Act” means the Securities Act of 1933, as amended.

     “Convertible Securities” means any evidence of indebtedness, shares or other
securities convertible into or exchangeable for Common Stock.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” shall be determined on a per Share basis as of the close of the
business day preceding the date of exercise, which determination shall be made as follows: (a) if
the Common Stock is listed on a national securities exchange or admitted to unlisted trading
privileges on such an exchange or quoted on either the National Market System or the Small Cap
Market of the automated quotation service operated by The Nasdaq Stock Market, Inc., the Fair
Market Value shall be the last reported sale price of that security on such exchange or system on
the day for which the current market price is to be determined or, if no such sale is made on such
day, the average of the highest closing bid and lowest asked price for such day on such exchange or
system; (b) if the Common Stock is not so listed or quoted or admitted to unlisted trading
privileges, the Fair Market Value shall be the average of the last reported highest bid and lowest
asked prices quoted on the Nasdaq Electronic Bulletin Board, or, if not so quoted, then by the National Quotation Bureau, Inc. on the last
business day prior to the day for which the Fair Market Value is to be determined; or (c) if the
Common Stock is not so listed or quoted or admitted to unlisted trading privileges and bid and
asked prices are not reported, the Fair Market Value shall be determined by the Company’s Board of
Directors in its reasonable, good faith judgment.

8

 

     “Options” means rights, options, or warrants to subscribe for, purchase or otherwise
acquire either Common Stock or Convertible Securities.

     “Person” means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization and a government or any department
or agency thereof.

     “Registered Holders” means, collectively, Elevation and each other holder of a Warrant
or Warrant Shares, if any, reflected as such on the books of the Company.

     “Registrable Securities” means the Warrant Shares.

     “Warrant” means the right to purchase one or more Warrant Shares pursuant to the terms
of this Warrant, as the same may be transferred, divided or exchanged pursuant to the terms hereof.

     “Warrant Shares” means shares of the Common Stock issuable upon exercise of the
Warrant; provided, however, that if there is a change such that the securities issuable upon
exercise of the Warrant are issued by an entity other than the Company or there is a change in the
class of securities so issuable, then the term “Warrant Shares” shall mean shares of the security
issuable upon exercise of the Warrant if such security is issuable in shares, or shall mean the
equivalent units in which such security is issuable if such security is not issuable in shares.

     SECTION 5. No Voting Rights; Limitations of Liability. This Warrant shall not entitle
the holder hereof to any voting rights or other rights as a stockholder of the Company. No
provision hereof, in the absence of affirmative action by the Registered Holder to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of the Registered Holder shall give
rise to any liability of such holder for the Exercise Price of Warrant Shares acquirable by
exercise hereof or as a stockholder of the Company.

     SECTION 6. Warrant Transferable. Subject to compliance with applicable securities
laws and the terms of this Section 6, this Warrant and all rights hereunder are transferable, in
whole or in part, without charge to the Registered Holder upon surrender of this Warrant with a
properly executed Assignment (in the form of Exhibit II hereto) at the principal office of
the Company.

     SECTION 7. Warrant Exchangeable for Different Denominations. This Warrant is
exchangeable, upon the surrender hereof by the Registered Holder at the principal office of the
Company, for new Warrants of like tenor representing in the aggregate the purchase rights
hereunder, and each of such new Warrants shall represent such portion of such rights as is designated by
the Registered Holder at the time of such surrender. The date the Company initially issues this
Warrant shall be deemed to be the “Date of Issuance” hereof regardless of the number of times new
certificates representing the unexpired and unexercised rights formerly represented by this Warrant

9

 

shall be issued. All Warrants representing portions of the rights hereunder are referred to herein
as the “Warrants.”

     SECTION 8. Replacement. Upon receipt of evidence reasonably satisfactory to the
Company of the ownership and the loss, theft, destruction or mutilation of any certificate
evidencing this Warrant, and in the case of any such loss, theft or destruction, upon receipt of
indemnity reasonably satisfactory to the Company, or, in the case of any such mutilation upon
surrender of such certificate, the Company shall (at the expense of the Registered Holder) execute
and deliver in lieu of such certificate a new certificate of like kind representing the same rights
represented by such lost, stolen, destroyed or mutilated certificate and dated the date of such
lost, stolen, destroyed or mutilated certificate.

     SECTION 9. Notices. All notices, requests, deliveries, consents and other
communications provided for herein shall be in writing and shall be effective upon delivery in
person, faxed, or mailed by certified or registered mail, return receipt requested, postage
pre-paid, addressed as follows:

     If to the Company, to:

The Fashion House Holdings, Inc.

6310 San Vicente Blvd.

Suite 330

Los Angeles, CA 90048

Attn: John Hanna

     If to Holder, to:

10

 

or, in any case, at such other address or addresses as shall have been furnished in writing to the
Company (in the case of a Registered Holder of Warrants) or to the Registered Holders of Warrants
(in the case of the Company) in accordance with the provisions of this paragraph.

     SECTION 10. Amendment and Waiver. Except as otherwise provided herein, the provisions
of the Warrants may be amended and the Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company has obtained the written
consent of the Registered Holders of Warrants representing a majority of the Warrant Shares
obtainable upon exercise of the then-outstanding Warrants; provided, however, that no such action
may change the Exercise Price of the Warrants or the number of shares or class of capital stock
obtainable upon exercise of each Warrant without the written consent of all Registered Holders.

     SECTION 11.  Descriptive Headings; Governing Law. 

          (a) The descriptive headings of the several Sections of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant.

          (b) All issues and questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by, and construed in accordance with, the laws
of the State of California, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of California or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of California.

     SECTION 12. Warrant Register. The Company shall maintain at its principal executive
office books for the registration and the registration of transfer of this Warrant. The Company
may deem and treat the Registered Holder as the absolute owner hereof (notwithstanding any notation
of ownership or other writing thereon made by anyone) for all purposes and shall not be affected by
any notice to the contrary.

     SECTION 13. Fractions of Shares. The Company may, but shall not be required, to issue
a fraction of a Warrant Share upon the exercise of this Warrant in whole or in part. As to any
fraction of a share which the Company elects not to issue, the Company shall make a cash payment in
respect of such fraction in an amount equal to the same fraction of the market price of a Warrant
Share on the date of such exercise (as determined by the board of directors in its reasonable
discretion).

* * * * *

11

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed and attested by its duly
authorized officers and to be dated as of the Date of Issuance hereof.

	 	 	 	 	 
	 	 	THE FASHION HOUSE HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: John Hanna
	 

	 	 	 	Title: CEO

12

 

EXHIBIT I

EXERCISE AGREEMENT

	 	 	 
	To:

	 	Dated:

     The undersigned, pursuant to the provisions set forth in the attached Warrant (Certificate No.
W-          ), hereby agrees to subscribe for the purchase of                      Warrant Shares covered by such
Warrant and makes payment herewith in full therefor at the price per share provided by such
Warrant. Please issue the Warrant Shares in the following names and amounts:

	 	 	 
	Name

	 	Number of Warrant Shares

	 	 	 	 	 
	 

	 	Signature	 	 
	 

	 	 	 	 
	 

	 	Address	 	 
	 

	 	 	 	 

13

 

EXHIBIT II

ASSIGNMENT

     FOR VALUE RECEIVED,                                                              hereby sells, assigns and transfers all of
the rights of the undersigned under the attached Warrant (Certificate No. W-                    ) with respect to
the number of the Warrant Shares covered thereby set forth below, unto:

	 	 	 	 	 
	Names of Assignee

	 	Address
	 	No. of Shares

	 	 	 	 	 
	Dated:

	 	Signature	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Witness	 	 
	 

	 	 	 	 

The Assignee agrees to be bound by the terms of the Warrant.

	 	 	 	 	 
	 

	 	Signature	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Witness	 	 
	 

	 	 	 	 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]