Document:

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

SECURITY AGREEMENT 

     This Security Agreement dated as
of April ___, 2014 (the “Agreement”) by and among Naked Brand Group,
Inc., a Nevada corporation (“Borrower”), with its primary place of
business at 2-34346 Manufacturer’s Way, Abbotsford, BC VU2S7MI, and the parties
listed on Schedule A hereto, which parties are also holders of a 6%
Senior Secured Convertible Promissory Notes (the “Notes”) issued by
Borrower (collectively, “Secured Parties”): 

     Borrower and Secured Parties
hereby agree as follows: 

     1. Certain
Definitions. Unless otherwise defined herein or in the Notes,
capitalized terms used herein that are defined in the Code shall have the
meanings assigned to them in the Code. The following terms shall have the
following meanings: 

          (a)
“Code” means the Uniform Commercial Code (or any similar or equivalent
legislation) as in effect in any applicable jurisdiction. 

          (b)
“Collateral” shall mean the property described on Exhibit A
hereto. 

          (c)
“Lien” means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, security interest, charge, claim
or other encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof, and any agreement to give
any security interest) and any agreement to give or refrain from giving a lien,
mortgage, pledge, hypothecation, assignment, deposit arrangement, security
interest, charge, claim or other encumbrance of any kind. 

          (d)
“Obligations” shall have the meaning set forth in Section 3 below.

          (e)
“Permitted Liens” means: such liens as are defined in the Notes. 

          (f)
“Required Note Holders” shall mean the holders of a majority of the
aggregate principal amount of the Notes. 

     2. Security
Agreement. 

          (a)
Grant. As collateral security for the payment and performance in full in
cash of the Obligations, Borrower, for valuable consideration, the receipt of
which is acknowledged, hereby grants to Secured Parties a security interest in
and Lien on all of the Collateral now owned or at any time hereafter acquired by
Borrower and wherever located or in which Borrower now has or at any time in the
future may acquire any right, title or interest. 

          (b)
Borrower Remains Liable. Anything herein to the contrary notwithstanding,
(i) Borrower shall remain liable under any contracts, agreements and other documents included in the Collateral, to the extent set
forth therein, to perform all of its duties and obligations thereunder to the
same extent as if this Agreement had not been executed, (ii) the exercise by any
Secured Party of any of the rights hereunder shall not release Borrower from any
of its duties or obligations under such contracts, agreements and other
documents included in the Collateral and (iii) no Secured Party shall have any
obligation or liability under any contracts, agreements and other documents
included in the Collateral by reason of this Agreement, nor shall any Secured
Party be obligated to perform any of the obligations or duties of Borrower
thereunder or to take any action to collect or enforce any such contract,
agreement or other document included in the Collateral hereunder. 

1 

          (c)
Continuing Security Interest. Borrower agrees that this Agreement shall
create a continuing security interest in the Collateral which shall remain in
effect until indefeasible payment and performance in full of all of the
Obligations. 

     3. Obligations
Secured. The security interest granted hereby secures payment of all
amounts owed pursuant to the Notes and all other obligations of Borrower to
Secured Parties under the Notes including, without limitation, all principal,
interest (including any interest that accrues after the commencement of a
proceeding by or against Borrower under the federal bankruptcy laws or any other
applicable federal, state or foreign bankruptcy, insolvency or other similar
law, regardless of whether allowed or allowable in whole or in part as a claim
in any such proceeding), obligations (including indemnification obligations),
fees, charges, costs, expenses, guaranties, covenants, and duties of any kind
and description owing by Borrower to Secured Parties pursuant to or evidenced by
the Notes and irrespective of whether for the payment of money, whether direct
or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, and including all interest not paid when due and all expenses
that Borrower is required to pay or reimburse under the Notes, by law, or
otherwise (collectively, the “Obligations”). 

     4. Borrower’s
Representations, Warranties And Covenants. Borrower hereby represents,
warrants and covenants to Secured Parties that: 

          (a)
Borrower’s principal place of business is the address set forth above and
Borrower keeps its records concerning accounts, contract rights and other
property at that location. Borrower is a corporation duly organized, validly
existing and in good standing under the laws of the State of Nevada and has all
requisite power and authority to execute, deliver and perform its obligations
under this Agreement. 

          (b)
Except for the security interest granted to Secured Parties pursuant to this
Agreement and the Permitted Liens, Borrower owns and has rights in, and, as to
Collateral acquired by it from time to time after the date hereof, will own and
have rights in each item of Collateral pledged by it hereunder, free and clear
of any and all Liens or claims of others. 

          (c)
The security interest in and Lien on the Collateral granted to Secured Parties
hereunder constitutes (a) a legal and valid first priority security interest in
all the Collateral securing the payment and performance of the
Obligations except for Permitted Liens and (b) a perfected security interest in
all the Collateral to the extent perfection may be achieved by the filings,
possession or Control required hereunder. The security interest and Lien granted
to Secured Parties pursuant to this Agreement in and on the Collateral will at
all times constitute a perfected (to the extent perfection may be achieved by
the filings, possession or Control required hereunder), continuing security
interest therein, prior to all other Liens on the Collateral except for
Permitted Liens. 

2 

          (d)
Borrower shall, at its own cost and expense, defend title to the Collateral
pledged by it hereunder and the security interest therein and Lien thereon
granted to Secured Parties and the priority thereof against all claims and
demands of all persons, at any time claiming any interest therein adverse to
Secured Parties, other than Permitted Liens. There is no agreement, order,
judgment or decree, and Borrower shall not enter into any agreement or take any
other action, that would restrict the transferability of any of the Collateral
or otherwise impair or conflict with Borrower’s obligations or the rights of
Secured Parties hereunder. 

          (e)
Borrower will at all times keep in a manner reasonably satisfactory to Secured
Parties accurate and complete records of the Collateral and will keep such
Collateral insured to the extent similarly situated companies insure their
assets. Secured Parties shall be entitled, at reasonable times during regular
business hours and intervals after reasonable notice to Borrower, to enter
Borrower’s premises for purposes of inspecting the Collateral and Borrower’s
books and records relating thereto. 

          (f)
Borrower will not create or permit to be created or suffer to exist any Lien,
except Permitted Liens, or permitted Indebtedness as set forth on Schedule 4(f)
of any kind on any of the Collateral. 

          (g)
Borrower shall not use the Collateral in violation of any applicable statute,
ordinance, law or regulation or in violation of any insurance policy maintained
by Borrower with respect to the Collateral. 

          (h)
Location of Inventory and Equipment. Borrower shall not move any
Equipment or Inventory to any location unless it shall have given Secured
Parties not less than thirty (30) days’ prior written notice of its intention so
to do, clearly describing such new location and providing such other information
in connection therewith as Secured Parties may request in the exercise of their
good faith credit judgment. 

          (i)
Other Financing Statements. Other than financing statements, security
agreements, chattel mortgages, assignments, copyright security agreements or
collateral assignments, patent or trademark security agreements or collateral
assignments, fixture filings and other agreements or instruments executed,
delivered, filed or recorded for the purpose of granting or perfecting any Lien
(collectively, “Financing Statements”) existing as of the date hereof and
disclosed to Secured Parties or arising after the date hereof in connection with
any Permitted Lien and Financing Statements in favor of Secured Parties, no
effective Financing Statement naming Borrower as debtor, assignor, grantor, mortgagor, pledgor or the like and covering
all or any part of the Collateral is on file in any filing or recording office
in any jurisdiction. 

3 

          (j)
Notices, Reports and Information. Borrower will (i) notify Secured
Parties of any material claim made or asserted against the Collateral by any
person or entity and of any change in the composition of the Collateral or other
event which could materially adversely affect the value of the Collateral or any
Secured Party’s Lien thereon; (ii) furnish to Secured Parties such statements
and schedules further identifying and describing the Collateral and such other
reports and other information in connection with the Collateral as Secured
Parties may reasonably request, all in reasonable detail; and (iii) upon the
reasonable request of Secured Parties make such demands and requests for
information and reports as Borrower is entitled to make in respect of the
Collateral. 

          (k)
Insurance. In the event that the proceeds of any insurance claim with
respect to any Collateral are paid to Borrower, such proceeds shall be held in
trust for the benefit of Secured Parties and shall be paid to Secured Parties
upon the occurrence of an Event of Default under Section 7. 

          (l)
Chief Executive Office; Change of Name; Jurisdiction of
Organization. Borrower shall not effect any change (i) to its legal name,
(ii) in the location of its chief executive office, (iii) in its identity or
organizational structure, (iv) in its organizational identification number, if
any, or (v) in its jurisdiction of organization (in each case, including by
merging with or into any other entity, reorganizing, dissolving, liquidating,
reorganizing or organizing in any other jurisdiction), unless (A) it shall have
given Secured Parties not less than thirty (30) days’ prior written notice of
its intention to do so and clearly describing such change and providing such
other information in connection therewith as Secured Parties may reasonably
request and (B) it shall have taken all action reasonably necessary to maintain
the perfection and priority of the security interest of Secured Parties in the
Collateral. Borrower agrees to promptly provide Secured Parties with certified
organization documents reflecting any of the changes described in clauses (i),
(iii), (iv) or (v) in the preceding sentence. Borrower also agrees to promptly
notify Secured Parties of any change in the location of any office in which it
maintains books or records relating to Collateral owned by it or any office or
facility at which Collateral is located (including the establishment of any such
new office or facility). 

          (m)
Disposition of Collateral. Borrower will not (i) surrender or lose
possession of (other than to Secured Parties), sell, assign (by operation of law
or otherwise), lease, rent, or otherwise dispose of or transfer any of the
Collateral or any right or interest therein, except (A) in the ordinary course
of its business, (B) to another wholly-owned subsidiary of Borrower or (C) as
otherwise as permitted in this Agreement, or (ii) to the extent in physical
form, remove any of the Collateral from its present location (other than
disposals of Collateral permitted by subsection (i)) except upon at least thirty
(30) days’ prior written notice to Secured Parties. 

          (n)
Separate Obligations and Liens. Borrower acknowledges and agrees that (i)
the Obligations represent separate and distinct indebtedness, obligations and liabilities of Borrower to each of Secured Parties, which
Borrower is separately obligated to each Secured Party to pay and perform, in
each case regardless of whether or not any indebtedness, obligation or liability
to any other Secured Party or any other person or entity, or any agreement,
instrument or guaranty that evidences any such other indebtedness, liability or
obligation, or any provision thereof, shall for any reason be or become void,
voidable, unenforceable or discharged, whether by payment, performance,
avoidance or otherwise; (ii) the Lien that secures each of Secured Parties’
respective Obligations (A) is separate and distinct from any and all other Liens
on the Collateral, (B) is enforceable (subject to applicable bankruptcy and
similar laws) without regard to whether or not any other Lien shall be or become
void, voidable or unenforceable or the indebtedness, obligations or liabilities
secured by any such other Lien shall be discharged, whether by payment,
performance, avoidance or otherwise, and (C) shall not merge with or be impaired
by any other Lien (subject to applicable bankruptcy and similar laws). 

4 

     5. Financing Statements.
Borrower shall at its cost execute any Financing Statement (including without
limitation the filing of notices with the United States Copyright Office and the
United States Patent and Trademark Office), in respect of any security interest
created pursuant to this Agreement which may at any time be required or which,
in the opinion of Secured Parties, may at any time be desirable. If any
recording or filing thereof (or the filing of any statements of continuation or
assignment of any financing statement) is required to protect and preserve such
lien or security interest, Borrower shall at its cost execute the same at the
time and in the manner requested by Secured Parties. To the fullest extent
permitted by applicable law, Borrower authorizes each Secured Party, and any
agent acting on behalf of any Secured Party, to file any such Financing
Statements without the signature of Borrower. 

     6. Borrower’s Rights Until
Default. So long as an Event of Default, as defined in Section 7
below, has not occurred, Borrower shall have the right to possess the
Collateral, manage its property and sell, lease, rent, or license its inventory
and/or intellectual property in the ordinary course of business. 

     7. Event of Default. As
used in this Agreement “Event of Default” shall have the meaning set
forth in the Notes. 

     8. Rights and Remedies on
Event of Default. 

          (a)
Upon the occurrence of an Event of Default, Secured Parties, upon the election
of the Note Holders, shall have the right, themselves or through any of their
agents, with or without notice to Borrower (as provided below), as to any or all
of the Collateral, by any available judicial procedure, or without judicial
process (provided, however, that it is in compliance with the UCC), to exercise
any and all rights afforded to a secured party under the UCC or other applicable
law. Without limiting the generality of the foregoing, Secured Parties, upon the
election of the Required Note Holders, shall have the right upon the occurrence
of an Event of Default to sell or otherwise dispose of all or any part of the
Collateral, either at public or private sale, in lots or in bulk, for cash or
for credit, with or without warranties or representations, and upon such terms
and conditions, all as the Required Note Holders, in their sole
discretion, may deem advisable, and Secured Parties shall have the right to
purchase at any such sale. Borrower agrees that a notice sent in accordance with
  Section 11 at least ten (10) days before the time of any intended public
sale or of the time after which any private sale or other disposition of the
Collateral in accordance with this Section 8 is to be made shall be
reasonable notice of such sale or other disposition. The proceeds of any such
sale, or other Collateral disposition shall be applied, first to the expenses of
retaking, holding, storing, processing and preparing for sale, selling, and the
like, and to Secured Parties’ reasonable attorneys’ fees and legal expenses, and
then to the Obligations and to the payment of any other amounts required by
applicable law, after which Secured Parties shall account to Borrower for any
surplus proceeds. If, upon the sale or other disposition of the Collateral, the
proceeds thereof are insufficient to pay all amounts to which Secured Parties
are legally entitled, Borrower shall be liable for the deficiency, together with
interest thereon at the rate of 10% per annum, and the reasonable fees of any
attorneys Secured Parties employ to collect such deficiency; provided, however, that the foregoing shall not be deemed to require Secured
Parties to resort to or initiate proceedings against the Collateral prior to the
collection of any such deficiency from Borrower. To the extent permitted by
applicable law, Borrower waives all claims, damages and demands against Secured
Parties arising out of the retention or sale or lease of the Collateral or other
exercise of Secured Parties’ rights and remedies with respect thereto in
accordance with applicable law. 

5 

          (b) To the extent permitted by
applicable law, any sale upon the occurrence of an Event of Default, whether
under any power of sale hereby given or by virtue of judicial proceedings, shall
operate to divest all Borrower’s right, title, interest, claim and demand
whatsoever, either at law or in equity, in and to the Collateral sold, and shall
be a perpetual bar, both at law and in equity, against Borrower, its successors
and assigns, and against all persons and entities claiming the Collateral sold
or any part thereof under, by or through Borrower, its successors or assigns.

          (c)
Borrower appoints each Secured Party, and any officer, employee or agent of such
Secured Party, with full power of substitution, as Borrower’s true and lawful
attorney-in-fact, effective as of the date hereof, with power, upon the Required
Note Holders’ election, in its own name or in the name of Borrower, upon the
occurence of an Event of Default: (i) to receive, collect and endorse any notes,
checks, drafts, money orders, or other instruments of payment in respect of the
Collateral that may come into Secured Parties’ possession, (ii) to sign and
endorse any drafts against Borrower, assignments, verifications and notices in
connection with accounts, and other documents relating to Collateral; (iii) to
pay or discharge taxes or Liens at any time levied or placed on or threatened
against the Collateral; (iv) to demand, collect, issue receipt for, compromise,
settle, sue for and recover monies due in respect of the Collateral; (v) to
notify persons and entities obligated with respect to the Collateral to make
payments directly to Secured Parties; (vi) to receive and open all mail
addressed to Borrower and to notify postal authorities to change the address for
the delivery of mail to Borrower to that of a Secured Party designated by the
Required Note Holders; (vii) to file any claims or take any action or institute
any proceedings which Secured Parties may deem necessary or desirable for the
collection of any of the Collateral of Borrower or otherwise to enforce the rights of Secured Parties with respect to any of the
Collateral; and (viii) generally, to do, at Secured Parties’ option and at
Borrower’s expense, at any time, or from time to time, all acts and things and
to execute any instrument which Secured Parties deems necessary or advisable to
protect, preserve and realize upon the Collateral and Secured Parties’ security
interest therein to effect the intent of this Agreement, all as fully and
effectually as Borrower might or could do; and Borrower hereby ratifies all that
said attorney shall lawfully do or cause to be done by virtue hereof. This power
of attorney shall be irrevocable as long as any of the Obligations are
outstanding. 

6 

          (d)
All of Secured Parties’ rights and remedies with respect to the Collateral,
whether established hereby or by any other agreements, instruments or documents
or by law shall be cumulative and may be exercised singly or concurrently. 

     9. Secured Parties’ Rights;
Borrower Waivers. 

          (a)
Secured Parties’ acceptance of partial or delinquent payment from Borrower under
any Note or hereunder, or Secured Parties’ failure to exercise any right
hereunder, shall not constitute a waiver of any obligation of Borrower
hereunder, or any right of Secured Parties hereunder, and shall not affect in
any way the right to require full performance at any time thereafter. 

          (b)
Borrower waives, to the fullest extent permitted by law, (i) any right of
redemption with respect to the Collateral, whether before or after sale
hereunder, and all rights, if any, of marshaling of the Collateral or other
collateral or security for the Obligations; (ii) any right to require any
Secured Party (A) to proceed against any person or entity, (B) to exhaust any
other collateral or security for any of the Obligations, (C) to pursue any
remedy in Secured Party’s power, or (D) to make or give any presentments,
demands for performance, notices of nonperformance, protests, notices of
protests or notices of dishonor in connection with any of the Collateral; and
(iii) all claims, damages, and demands against any Secured Party arising out of
the repossession, retention, sale or application of the proceeds of any sale of
the Collateral. 

     10. Collateral Agent. At
any time or times, in order to comply with any legal requirement in any
jurisdiction or in order to effectuate any provision of this Agreement as
determined in the discretion of the Required Note Holders, the Required Note
Holders may, without the consent of or notice to Borrower, appoint any Secured
Party, or any bank or trust company or any other person or entity to act as
collateral agent (the “Collateral Agent”), either jointly with any
Secured Party or separately, on behalf of Secured Parties with such power and
authority as may be necessary for the effectual operation of the provisions
hereof and specified in the instrument of appointment. Borrower acknowledges
that: (i) the rights and responsibilities of the Collateral Agent under this
Agreement or arising out of this Agreement shall, as between the Collateral
Agent and Secured Parties, be governed by the matters as among Secured Parties
and the Collateral Agent to which Borrower shall not be a third party or other
beneficiary; and (ii) as between the Collateral Agent and Borrower, the
Collateral Agent shall be conclusively presumed to be acting as agent for itself
and Secured Parties with full and valid authority so to act or refrain from
acting. 

7 

     11. Miscellaneous. 

          (a)
Expenses. Borrower agrees to promptly pay all fees, costs and expenses
incurred in connection with any matters contemplated by or arising out of this
Agreement, the Notes or any other document related thereto, and all such fees,
costs and expenses shall be part of the Obligations, payable on demand,
including, but not limited to: (a) fees, costs and expenses incurred by Secured
Parties (including reasonable attorneys’ fees) in connection with the
examination, negotiation, review, and documentation of this Agreement, the Notes
and any other document related thereto, and any amendments, waivers, consents,
forbearances and other modifications relating hereto, including in connection
with any workout or restructuring involving Borrower or thereto; and (b) fees,
costs, expenses (including attorneys’ fees) of Secured Parties and costs of
settlement incurred in any action to enforce this Agreement, or any other
document related thereto or to collect any payments due from Borrower under this
Agreement, or any other document related thereto. 

          (b)
Indemnity. In addition to the payment of expenses pursuant to Section
11(a), Borrower agrees to indemnify, pay and hold each Secured Party, and
the officers, directors, employees, agents, consultants, partners, auditors,
accountants, affiliates and attorneys of each Secured Party (collectively called
the “Indemnitees”) harmless from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, claims,
costs, expenses and disbursements of any kind or nature whatsoever (including
the reasonable and documented fees and disbursements of counsel for such
Indemnitees in connection with any investigative, administrative or judicial
proceeding commenced or threatened, whether or not such Indemnitee shall be
designated a party thereto) that may be imposed on, incurred by, or asserted
against that Indemnitee, in any manner relating to or arising out of this
Agreement, or any other document related thereto, the consummation of the
transactions contemplated by this Agreement, the use or intended use of the
proceeds of any of the Notes, the existence or perfection of any Liens, or
realization upon any Collateral, or the exercise of any right or remedy under
this Agreement, or any other document related thereto (the “Indemnified
Liabilities”); provided, that (i) Borrower shall have no obligation to an
Indemnitee hereunder with respect to Indemnified Liabilities arising from the
gross negligence or willful misconduct of that Indemnitee as determined by a
final non-appealable judgment by a court of competent jurisdiction; and (ii) the
Indemnitee shall give Borrower prompt written notice of any claims, actions or
suits asserted against the Indemnitee relating to the Indemnified Liabilities,
provided, however, that failure to provide such notice shall not
impair the rights and remedies of the parties hereunder unless Borrower is
materially prejudiced by such failure to provide prompt written notice. 

          (c)
Amendment and Waiver. Neither this Agreement nor any part hereof may be
changed, waived, or amended except by an instrument in writing signed by the
Required Note Holders and by Borrower; and waiver on one occasion shall not
operate as a waiver on any other occasion. 

          (d)
Notices. Unless otherwise provided, any notice required or permitted
under this Agreement shall be given pursuant to the terms of the Notes. 

8 

          (e)
Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of, the successors and assigns of the parties hereto, including,
without limitation, all future holders of the Notes. 

          (f)
Governing Law. This Agreement and any controversy arising out of or
relating to this Agreement shall be governed by, and construed in accordance
with, the Uniform Commercial Code of the State of Nevada as to matters within
the scope thereof, and as to all other matters (including contract law, tort law
and matters of fraud) shall be governed by, and construed in accordance with,
the internal laws of the State of Florida, without regard to conflict of law
principles that would result in the application of any law other than the law of
the State of Nevada. 

          (g)
Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Execution and delivery of this Agreement
by facsimile or electronic exchange bearing the copies of a party’s signature
shall constitute a valid and binding execution and delivery of this Agreement by
such party. Such facsimile or electronic copies shall constitute enforceable
original documents. 

          (h)
Titles and Subtitles. The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement. 

          (i)
Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this
Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms. 

          (j)
Venue. Borrower and Secured Parties agree that all actions or proceedings
arising in connection with this Agreement shall be tried and litigated only in
the courts of the State of New York located in the City of New York, and the
United States District Court for the Southern District of New York or, at the
Required Note Holders’ option, any court in which the Required Note Holders
determine it is necessary or appropriate to initiate legal or equitable
proceedings in order to exercise, preserve, protect or defend any of Secured
Parties’ rights and remedies hereunder or otherwise or to exercise, preserve,
protect or defend Secured Parties’ Lien, and the priority thereof, against the
Collateral, and which has subject matter jurisdiction over the matter in
controversy. Borrower waives any right it may have to assert the doctrine of
forum non conveniens or to object to such venue, and consents to any court
ordered relief. Borrower waives personal service of process and agrees that a
summons and complaint commencing an action or proceeding in any such court shall
be promptly served and shall confer personal jurisdiction if served by
registered or certified mail to Borrower. If Borrower fails to appear or answer
any summons, complaint, process or papers so served within thirty (30) days
after the mailing or other service thereof, it shall be deemed in default and an
order of judgment may be entered against it as demanded or prayed for in such
summons, complaint, process or papers. The choice of forum set forth herein
shall not be deemed to preclude the enforcement of any judgment
obtained in such forum, or the taking of any action hereunder to enforce the
same, in any appropriate jurisdiction. 

9 

          (k)
Waiver of Jury Trial. TO THE EXTENT EACH MAY LEGALLY DO SO, EACH PARTY
HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION, CAUSE OF ACTION, OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS
AGREEMENT, OR IN ANY WAY CONNECTED WITH, OR RELATED TO, OR INCIDENTAL TO, THE
DEALING OF THE PARTIES HERETO WITH RESPECT TO THIS AGREEMENT, OR THE
TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND IRRESPECTIVE OF WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE.
TO THE EXTENT EACH MAY LEGALLY DO SO, EACH PARTY HERETO HEREBY AGREES THAT ANY
SUCH CLAIM, DEMAND, ACTION, OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL
WITHOUT A JURY AND THAT EITHER PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
ANY OTHER PARTY HERETO TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 

          (l)
Termination of Security Interest. 

               (i)
The security interest granted herein shall terminate immediately and
automatically upon the payment in full of the Obligations. 

               (ii)
Upon termination of the security interest, Secured Parties shall promptly
execute and deliver to Borrower such documents and instruments reasonably
requested by Borrower, and shall take all actions necessary or appropriate to
effect the release of such security interest. 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

10 

     IN WITNESS WHEREOF, this
Agreement has been executed by the parties hereto as of the date first above
written. 

	 	BORROWER 
	 	 	  
	 	NAKED BRAND GROUP, INC.
    
	 	 	  
	 	 	  
	 	 	  
	 	By: 	
	 	 	Name: 
	 	 	Title: 

11 

Secured Party Signature Page 

	Signatures 	 	Purchaser Name (Print) 
	 	 	 
	 	 	 
	 	 	 

Dated: _____________, 2014 

(Each co-owner or joint owner must sign) 

12 

SCHEDULE A 

SECURED PARTIES

 

 

13 

EXHIBIT A 

DESCRIPTION OF COLLATERAL 

A. Collateral. All personal property of Borrower
(“Borrower” or “Debtor”) whether presently existing or hereafter
created, written, produced or acquired, including, but not limited to: 

     (i) all accounts receivable,
Accounts, Chattel Paper (including, without limitation, tangible Chattel Paper
and electronic Chattel Paper), contract rights (including, without limitation,
royalty agreements, license agreements and distribution agreements), documents,
instruments, money, deposit accounts and general intangibles, including, without
limitation, payment intangibles, returns, repossessions, books and records
(including, without limitation, all records indicating, summarizing or
evidencing its assets or liabilities, or its business operations or financial
condition), and equipment containing said books and records, all financial
assets, all investment property, including securities and securities
entitlements; 

     (ii) all software, computer
source codes and other computer programs and supporting information
(collectively, the “Software Products”), and all common law
and statutory copyrights and copyright registrations, applications for
registration, now existing or hereafter arising, United States of America and
foreign, obtained or to be obtained on or in connection with the Software
Products, or any parts thereof or any underlying or component elements of the
Software Products together with the right to copyright and all rights to renew
or extend such copyrights and the right (but not the obligation) of any Secured
Party to sue in its own name and/or the name of the Debtor for past, present and
future infringements of copyright; 

     (iii) all goods, including,
without limitation, equipment, fixtures and inventory (including, without
limitation, all export inventory) and all computer programs embedded in goods
and any supporting information; 

     (iv) all guarantees and other
security therefor; 

     (v) all trademarks, service
marks, trade names and service names and the goodwill associated therewith; 

     (vi) (a) all patents and patent
applications filed in the United States Patent and Trademark Office or any
similar office of any foreign jurisdiction, and interests under patent license
agreements, including, without limitation, the inventions and improvements
described and claimed therein, (b) licenses pertaining to any patent whether
Debtor is licensor or licensee, (c) all income, royalties, damages, payments,
accounts and accounts receivable now or hereafter due and/or payable under and
with respect thereto, including, without limitation, damages and payments for
past, present or future infringements thereof, (d) the right (but not the
obligation) to sue for past, present and future infringements thereof, (e) all
rights corresponding thereto throughout the world in all jurisdictions in which
such patents have been issued or applied for, and (f) the reissues, divisions, continuations, renewals,
extensions and continuations-in-part with any of the foregoing (all of the
foregoing patents and applications and interests under patent license
agreements, together with the items described in clauses (a) through (f) in this
paragraph are sometimes herein individually and collectively (“Patents”); 

14 

     (vii) all letter-of-credit
rights, letters of credit, instruments, promissory notes, drafts and Documents;

     (viii) all rights in respect of
Obligations; 

     (ix) all interest with respect to
any Commercial Tort Claims; 

     (x) all money, cash equivalents
or other assets that now or hereafter come into the possession, custody or
control of any Secured Party; and 

     (xi) all products and proceeds,
including, without limitation, insurance proceeds, of any of the foregoing. 

15 

SCHEDULE 4(f) 

PERMITTED LIENS 

A. Those certain secured convertible promissory notes (as such
notes may be amended, amended and restated, supplemented or otherwise modified
from time to time) issued by the Borrower to certain lenders for whom Kalamalka
Partners Ltd. (“Kalamalka”) is acting as agent pursuant to (i) that
certain Agency and Interlender Agreement dated August 10, 2012 (as may be
amended, amended and restated, supplemented or otherwise modified from time to
time), and (ii) that certain Agency and Interlender Agreement dated November 14,
2013 (as may be amended, amended and restated, supplemented or otherwise
modified from time to time), in each case of (i) and (ii), between Kalamalka and
the lenders set forth therein. 

B. Discounted bills of exchange, discounting or factoring of
receivables or other similar arrangements, in each case incurred in the ordinary
course of business. 

16Naked Brand Group Inc. Exhibit10.4 - Filed by newsfilecorp.com

NAKED BRAND GROUP,
INC. 

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED UNLESS
(1) THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH
SECURITIES, (2) THE SALE IS MADE IN ACCORDANCE WITH RULE 144 OR A BONA FIDE
PLEDGE OR CUSTODIAL ARRANGEMENT WITH RESPECT TO SUCH SECURITIES OR (3) AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY IS DELIVERED STATING
THAT SUCH REGISTRATION IS NOT REQUIRED. 

♦[IF WARRANT HOLDER IS CANADIAN, INCLUDE THE
FOLLOWING LEGEND: THE HOLDER OF THE SECURITIES REPRESENTED HEREBY
MUST NOT TRADE THE SECURITIES IN OR FROM A JURISDICTION OF CANADA UNLESS THE
CONDITIONS IN SECTION 13 OF MULTILATERAL INSTRUMENT
51-105 ISSUERS QUOTED IN THE U.S. OVER
THE COUNTER MARKETS ARE MET.] 

NAKED BRAND GROUP, INC.

WARRANTS TO PURCHASE
COMMON STOCK 

	WARRANT
      NO.                                          
    	 Warrants to Purchase up
      to                                    
      Shares of Common Stock, subject to adjustment 

     NAKED BRAND GROUP, INC. (THE
"COMPANY" OR THE "ISSUER"), A NEVADA CORPORATION, FOR VALUE RECEIVED, HEREBY
CERTIFIES THAT _____, OR ITS PERMITTED ASSIGNS, IS THE REGISTERED HOLDER (THE
"HOLDER") OF WARRANTS TO PURCHASE FROM THE ISSUER UP TO ____ SHARES (THE
"WARRANT SHARES") OF DULY AUTHORIZED, VALIDLY ISSUED, FULLY PAID AND
NON-ASSESSABLE SHARES OF COMMON STOCK, PAR VALUE $0.001 PER SHARE (THE "COMMON
STOCK"), OF THE ISSUER AT A PRICE PER SHARE EQUAL TO THE WARRANT EXERCISE PRICE
(AS DEFINED HEREIN), SUBJECT TO THE TERMS, CONDITIONS AND ADJUSTMENTS SET FORTH
BELOW IN THIS WARRANT (THIS "WARRANT"). 

Exhibit C - Form of Warrant to Purchase Common Stock

Page 1 

NAKED BRAND GROUP,
INC. 

TABLE OF CONTENTS 

	1.
      	Warrant
      	3
      
	2.
      	Reservation
      of Shares 	5
      
	3.
      	Transfer
      and Assignment 	5
      
	4.
      	Call
      Provision 	5
      
	5.
      	Taxes
      	6
      
	6.
      	Certain
      Adjustments 	6
      
	7.
      	Business
      Combinations 	6
      
	8.
      	Lost
      or Stolen Warrant 	7
      
	9.
      	Agent
      	7
      
	10.
      	Notice
      	7
      
	11.
      	Miscellaneous
      	7
      

Exhibit C - Form of Warrant to Purchase Common Stock

Page 2 

NAKED BRAND GROUP,
INC. 

    
1.      Warrant 

This Warrant has been issued pursuant to the subscription
agreement between the Company and the Holder (the “Subscription
Agreement”) and the Company’s Confidential Private Placement Memorandum
dated May 2, 2014 as amended and supplemented (the “Memorandum”) relating
to the Company’s offering (the “Offering”) of units (“Units”),
with each Unit consisting of a $25,000 convertible senior secured debenture (the
“Convertible Debenture”) and common stock purchase warrants to purchase
up to an aggregate of 166,667 shares of the Company’s Common Stock
(collectively, the “Warrant Shares”), and is subject to the terms and
conditions thereof. Unless otherwise defined herein, capitalized terms used
herein shall have the meanings set forth in the Subscription Agreement. This
Warrant is one of a number of Warrants issued by the Company to the Holder and
to the other purchasers of Units in the Offering (the “Other
Purchasers”). 

         
1.1      Subject to the provisions of this
Warrant: 

                   
(a)      This Warrant
entitles the Holder to purchase at any time during the Warrant Term for the
Warrant Exercise Price the Warrant Shares, subject to adjustment as set forth
herein. 

                   
(b)      The "Warrant
Exercise Price" shall be $0.15 per Warrant Share. 

                   
(c)      The "Warrant
Term" shall mean from and after the date this Warrant is originally issued
until 5:00 p.m., Eastern time, five years thereafter. 

         
1.2      Exercise: 

(a)      Exercise of
Warrant. Exercise of the purchase rights represented by this Warrant may be
made, in whole or in part, at any time or times on or after the initial issuance
date and on or before the Warrant Term by delivery to the Company (or such other
office or agency of the Company as it may designate by notice in writing to the
registered Holder at the address of the Holder appearing on the books of the
Company) of a duly executed electronic mail of a notice of exercise form annexed
hereto as Exhibit 1 (“Warrant Notice”) and within three (3) Trading Days of the
date said Warrant Notice is delivered to the Company, the Company shall have
received payment of the aggregate Warrant Exercise Price of the Warrant Shares
thereby purchased by wire transfer or cashier’s check drawn on a United States
bank or, if available, pursuant to the cashless exercise procedure specified in
Section 1.2(b) below. Notwithstanding anything herein to the contrary, the
Holder shall not be required to physically surrender this Warrant to the Company
until the Holder has purchased all of the Warrant Shares available hereunder and
the Warrant has been exercised in full, in which case, the Holder shall
surrender this Warrant to the Company for cancellation within three (3) Trading
Days of the date the final Warrant Notice is delivered to the Company. Partial
exercises of this Warrant resulting in purchases of a portion of the total
number of Warrant Shares available hereunder shall have the effect of lowering
the outstanding number of Warrant Shares purchasable hereunder in an amount
equal to the applicable number of Warrant Shares purchased. The Holder and the
Company shall maintain records showing the number of Warrant Shares purchased
and the date of such purchases. The Holder and any assignee, by acceptance of
this Warrant, acknowledge and agree that, by reason of the provisions of this
paragraph, following the purchase of a portion of the Warrant Shares hereunder,
the number of Warrant Shares available for purchase hereunder at any given time
may be less than the amount stated on the face hereof. 

(b)      Cashless
Exercise. If at any time after the six month anniversary of the date of the
final closing date of the offering, there is no effective registration statement
registering, or no current prospectus available for, the resale of the Warrant
Shares by the Holder, then this Warrant may also be exercised, in whole or in
part, at such time by means of a “cashless exercise” in which the Holder shall
be entitled to receive a number of Warrant Shares equal to the quotient obtained
by dividing [(A-B) (X)] by (A), where: 

(A) = the VWAP on the Trading Day
immediately preceding the date on which Holder elects to exercise this Warrant
by means of a “cashless exercise,” as set forth in the applicable Warrant
Notice; 

(B) = the Exercise Price of this
Warrant, as adjusted hereunder; and 

(X) = the number of Warrant Shares
that would be issuable upon exercise of this Warrant in accordance with the
terms of this Warrant if such exercise were by means of a cash exercise rather
than a cashless exercise. 

Exhibit C - Form of Warrant to Purchase Common Stock

Page 3 

NAKED BRAND GROUP,
INC. 

(c)      Mechanics of
Exercise.

          (i)      Delivery
of Warrant Shares Upon Exercise. Warrant Shares purchased hereunder shall be
transmitted by the transfer agent to the Holder by crediting the account of the
Holder’s prime broker with The Depository Trust Company through its Deposit or
Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in
such system and either (A) there is an effective registration statement
permitting the issuance of the Warrant Shares to or resale of the Warrant Shares
by the Holder or (B) the shares are eligible for resale by the Holder pursuant
to Rule 144, and otherwise by physical delivery to the address specified by the
Holder in the Warrant Notice by the date that is three (3) Trading Days after
the latest of (A) the delivery to the Company of the Warrant Notice and (B)
surrender of this Warrant (if required) (such date, the “Warrant Share Delivery
Date”). 

          (ii)      Compensation
for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise.
In addition to any other rights available to the Holder, if after actual receipt
of an effective Warrant Notice the Company fails to cause the transfer agent to
transmit to the Holder the Warrant Shares pursuant to an exercise on or before
the Warrant Share Delivery Date, and if after such date the Holder is required
by its broker to purchase (in an open market transaction or otherwise) or the
Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver
in satisfaction of a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “Buy-In”), then the Company
shall (A) pay in cash to the Holder the amount, if any, by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (1) the number of Warrant Shares that the Company was required to
deliver to the Holder in connection with the exercise at issue times (2) the
price at which the sell order giving rise to such purchase obligation was
executed, and (B) at the option of the Holder, either reinstate the portion of
the Warrant and equivalent number of Warrant Shares for which such exercise was
not honored (in which case such exercise shall be deemed rescinded) or deliver
to the Holder the number of shares of Common Stock that would have been issued
had the Company timely complied with its exercise and delivery obligations
hereunder. For example, if the Holder purchases Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. 

Exhibit C - Form of Warrant to Purchase Common Stock

Page 4 

NAKED BRAND GROUP,
INC. 

2.      Reservation
of Shares 

For so long as this Warrant has not been exercised in full, the
Issuer shall, at all times prior to the end of the Warrant Term, reserve and
keep available free from any pre-emptive rights that would reduce the number of
shares issuable to the Holder under this Warrant, out of its authorized but
unissued capital stock, the number of shares of Common Stock available for
exercise hereunder. In the event the number of issued shares of Common Stock
plus all other shares of Common Stock outstanding and otherwise reserved for
issuance exceeds the total authorized number of shares of Common Stock, the
Issuer shall promptly take all actions necessary to increase the authorized
number of shares of Common Stock, including causing its board of directors to
call a special meeting of stockholders and recommend such increase. 

3.      Transfer
and Assignment 

By accepting delivery of this Warrant, the Holder covenants and
agrees with the Issuer that the Warrant will not be sold or assigned, in whole
or in part, unless such sale or assignment complies with applicable federal,
state and foreign securities laws and the terms of this Warrant. Subject to
compliance with any applicable securities laws and the conditions set forth
hereof, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant duly executed by the Holder
or its agent or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees, as applicable, and in the denomination or
denominations specified in such instrument of assignment, and shall issue to the
assignor a new Warrant evidencing the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled. Notwithstanding anything herein to
the contrary, the Holder shall not be required to physically surrender this
Warrant to the Company unless the Holder has assigned this Warrant in full, in
which case, the Holder shall surrender this Warrant to the Company within three
(3) Trading Days of the date the Holder delivers an assignment form to the
Company assigning this Warrant full. The Warrant, if properly assigned in
accordance herewith, may be exercised by a new holder for the purchase of
Warrant Shares without having a new Warrant issued.

4.      Call
Provision 

The Company has the right, beginning May __, 2014 (two years
from the initial closing), on thirty (30) days’ written notice (the “Call
Notice”), to require the Holder to exercise the Warrants (the “Right of
Call”), so long as the Closing Price (described below) exceeds $0.40 per
share subject to adjustment for at least twenty (20) consecutive trading days,
such Call Notice is issued within forty-five (45) Trading Days thereafter and
through such Call Notice period a registration statement is in effect and a
current prospectus is available covering the Warrant Shares . The Warrants will
terminate on the date that is thirty (30) days from the date of the Call Notice
in the event that the Holder has not exercised the Warrants in accordance with
the terms of the Call Notice by such date and the provision of this Section 4
have been complied with in all respects.

The Closing Price of the common stock of any date of
determination means: (a) the Closing Price for the regular trading session
(without considering after hours or trading outside regular trading session
hours) of the common stock (regular way) as reported in the composite
transactions for the principal United States securities exchange in which the
common stock is so listed on that date (or, if no Closing Price is reported),
(a) the last reported sale price during that trading session or, (b) if the
common stock is not so listed, the last reported sale price for the common stock
on the over the counter market and reported by the OTC Markets, or similar
organization, or (c) if the common stock is not so quoted the average midpoint
of the last bid and asking price for the common stock of at least three (3)
nationally recognized investment banking firms of the Company selects for that
purpose. 

5.      Taxes

The Issuer will pay all documentary stamp taxes (if any)
attributable to the issuance of the Warrant Shares; provided, however, that the
Issuer shall not be required to pay any tax or taxes which may be payable in
respect of any transfer involved in the registration of the Warrant or any
certificates for the Warrant Shares in a name other than that of the Holder of
the Warrant surrendered upon the exercise of the Warrant, and the Issuer shall
not be required to issue or deliver a Warrant evidencing rights thereunder or
certificates for the Warrant Shares unless or until the person or persons
requesting the issuance thereof shall have paid to the Issuer the amount of such
tax or shall have established to the reasonable satisfaction of the Issuer that
such tax has been paid. 

Exhibit C - Form of Warrant to Purchase Common Stock

Page 5 

NAKED BRAND GROUP,
INC. 

6.     
Certain Adjustments 

6.1      In the event that the Company
shall (a) issue additional shares of Common Stock as a dividend or other
distribution on outstanding Common Stock, (b) subdivide its outstanding Common
Stock, or (c) combine its outstanding Common Stock into a smaller number of
shares, then, in each such event, the Warrant Exercise Price shall,
simultaneously with the happening of such event, be adjusted by multiplying the
then Warrant Exercise Price by a fraction, (i) the numerator of which shall be
the number of shares outstanding immediately prior to such event and (ii)the
denominator of which shall be the number of shares outstanding immediately after
such event, and the product so obtained shall thereafter be the Warrant Exercise
Price then in effect. The Warrant Exercise Price, as so adjusted, shall be
readjusted in the same manner upon the happening of any successive event or
events described herein in this section 6.1. The number of Warrant Shares that
the Holder of this Warrant shall thereafter, on the exercise hereof be entitled
to receive shall be adjusted to a number determined by multiplying the number of
shares of Common Stock that would otherwise (but for the provisions of this
section) be issuable on such exercise by a fraction of which (a) the numerator
is the Warrant Exercise Price that would otherwise (but for the provisions of
this Section) be in effect, and (b) the denominator is the Warrant Exercise
Price in effect on the date of such exercise. 

6.2      No adjustment shall be made
under this Warrant in the event the Issuer issues Common Stock or securities
convertible into Common Stock at a purchase price, exercise price or conversion
price that is less than the Warrant Exercise Price. 

7.     
Business Combinations 

In case the Issuer on or after the date hereof is party to any
(a) acquisition of the Issuer by means of merger or other form of corporate
reorganization in which outstanding shares of the Issuer are exchanged for
securities or other consideration issued, or caused to be issued, by the
Acquiring Person, ( as defined herein), or its Parent, (as defined herein),
Subsidiary, (as defined herein) , or affiliate, (b) a sale of all or
substantially all of the assets of the Issuer (on a consolidated basis) in a
single transaction or series of related transactions, (c) any other transaction
or series of related transactions by the Issuer or relating to the Common Stock
(including without limitation, any stock purchase or tender or exchange offer)
in which the power to cast the majority of the eligible votes at a meeting of
the Issuer's stockholders at which directors are elected is transferred to a
single entity or group acting in concert, or (d) a capital reorganization or
reclassification of the Common Stock or other securities (other than a
reorganization or reclassification in which the Common Stock or other securities
are not converted into or exchanged for cash or other property, and, immediately
after consummation of such transaction, the stockholders of the Issuer
immediately prior to such transaction own the Common Stock, other securities or
other voting stock of the Issuer in substantially the same proportions relative
to each other as such stockholders owned immediately prior to such transaction),
then, and in the case of each such transaction (each of which is referred to
herein as "Change in Control"), proper provision shall be made so that,
at the option of the Acquiring Person and upon fifteen (15) days’ prior written
notice to the Issuer and the Holder prior to the consummation of the Change of
Control, either (i) the Acquiring Person expressly agrees to assume all of the
Issuer’s obligations under the Warrant or (ii) the Holder has fifteen (15) days
in which to exercise its rights under the Warrant. If Holder does not exercise
its rights during such fifteen (15) day period, all rights under the Warrant
shall terminate and the Warrant shall be of no further force and effect. The
Issuer, to the extent feasible, shall provide the Holder with thirty (30) days’
prior written notice of the consummation of any Change of Control. Subject to
the foregoing, on or before the closing date under the agreement entered into
with an Acquiring Person resulting in a Change in Control, the Issuer, if
applicable, shall deliver to the Holder written notice that the Acquiring Person
has assumed such obligations. "Acquiring Person" means, in connection
with any Change in Control, (i) the continuing or surviving corporation of a
consolidation or merger with the Issuer (if other than the Issuer), (ii) the
transferee of all or substantially all of the properties or assets of the
Issuer, (iii) the corporation consolidating with or merging into the Issuer in a
consolidation or merger in connection with which the Common Stock is changed
into or exchanged for stock or other securities of any other Person or cash or
any other property, (iv) the entity or group (other than Holder or any of its
affiliates) acting in concert acquiring or possessing the power to cast the
majority of the eligible votes at a meeting of the Issuer 's stockholders at
which directors are elected, or, (v) in the case of a capital reorganization or
reclassification, the Issuer, or (vi) at the Holder's election, any Person that
(A) controls the Acquiring Person directly or indirectly through one or more
intermediaries, (B) is required to include the Acquiring Person in the
consolidated financial statements contained in such Parent's Annual Report on
Form 10-K (if such Person is required to file such a report) or would be
required to so include the Acquiring Person in such Person's consolidated
financial statements if they were prepared in accordance with U.S. GAAP and (C)
is not itself included in the consolidated financial statements of any other
Person (other than its consolidated subsidiaries). "Parent" shall mean
any corporation (other than the Acquiring Person) in an unbroken chain of
corporations ending with the Acquiring Person, provided each corporation in the
unbroken chain (other than the Acquiring Person) owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain. "Subsidiary" shall mean any corporation at least 50% of whose
outstanding voting stock shall at the time be owned directly or indirectly by
the Acquiring Person or by one or more Subsidiaries. 

Exhibit C - Form of Warrant to Purchase Common Stock

Page 6 

NAKED BRAND GROUP,
INC. 

8.      Lost or
Stolen Warrant 

In case this Warrant shall be mutilated, lost, stolen or
destroyed, the Issuer may in its discretion issue in exchange and substitution
for and upon cancellation of the mutilated Warrant, or in lieu of and
substitution for the Warrant lost, stolen or destroyed, a new Warrant of like
tenor, but only upon receipt of evidence reasonably satisfactory to the Issuer
of such loss, theft or destruction of such Warrant. Applicants for a substitute
Warrant shall also comply with such other reasonable regulations and pay such
other reasonable charges as the Issuer may prescribe. 

9.      Agent

The Issuer (and any successor) shall at all times maintain a
register of the holders of the Warrants. 

10.     Notice

Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earliest of: (a) the date of transmission, if
such notice or communication is delivered via electronic mail set forth on the
signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on
a Business Day, (b) the next Business Day after the date of transmission, if
such notice or communication is delivered via electronic mail at the address set
forth on the signature pages attached hereto on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second
(2nd) Business Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service or (d) upon actual receipt by the party to
whom such notice is required to be given. The address for such notices and
communications shall be as set forth on the signature pages attached to the
Subscription Agreement. 

11.     
Miscellaneous. 

11.1      By its acceptance
of this Warrant, the Holder agrees that all of the terms, provisions, and
conditions hereof shall be construed in accordance with and governed by the laws
of the State of New York, without giving effect to its conflict of laws
principles. Any dispute arising out of or in connection with this Warrant shall
be exclusively adjudicated before a court located in the County of New York and
the parties hereto exclusively submit to the exclusive jurisdiction and venue of
the federal and state courts of the State of New York located in the County of
New York with respect to any action or legal proceeding commenced by any party,
and irrevocably waive any objection they now or hereafter may have respecting
the venue of any action or proceeding brought in such a court or respecting the
fact that such court is an inconvenient forum and the Holder consents to the
service of process in any such action or legal proceeding by means of registered
or certified mail, return receipt requested, in care of the address set forth
below or such other address as the Holder shall furnish in writing to the
Company. 

Exhibit C - Form of Warrant to Purchase Common Stock

Page 7 

NAKED BRAND GROUP,
INC. 

11.2      Any and all
remedies set forth in this Warrant: (i) shall be in addition to any and all
other remedies the Holder or the Issuer may have at law or in equity, (ii) shall
be cumulative, and (iii) may be pursued successively or concurrently as each of
Holder and the Issuer may elect. The exercise of any remedy by the Holder or the
Issuer shall not be deemed an election of remedies or preclude the Holder or the
Issuer, respectively, from exercising any other remedies in the future.

11.3      For purposes of
this Warrant, except as otherwise expressly provided or unless the context
otherwise requires: (i) the terms defined in this Warrant have the meanings
assigned to them in this Warrant and include the plural as well as the singular,
and the use of any gender herein shall be deemed to include the other gender and
neuter gender of such term; (ii) accounting terms not otherwise defined herein
have the meanings assigned to them in accordance with U.S. GAAP; (iii)
references herein to "Articles", "Sections", "Subsections", "Paragraphs" and
other subdivisions without reference to a document are to designated Articles,
Sections, Subsections, Paragraphs and other subdivisions of this Warrant, unless
the context shall otherwise require; (iv) a reference to a Subsection without
further reference to a Section is a reference to such Subsection as contained in
the same Section in which the reference appears, and this rule shall also apply
to Paragraphs and other subdivisions; (v) the words "herein", "hereof",
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular provision; (vi) the term "include" or "including"
shall mean without limitation; (vii) any agreement, instrument or statute
defined or referred to herein means such agreement, instrument or statute as
from time to time amended, modified or supplemented, including (in the case of
agreements or instruments) by waiver or consent and (in the case of statutes) by
succession of comparable successor statues and references to all attachments
thereto and instruments incorporated therein; and (viii) references to a Person
are also to its permitted successors and assigns and, in the case of an
individual, to his or her heirs and estate, as applicable. 

11.4      If any term or
other provision of this Warrant is invalid, illegal or incapable of being
enforced by any rule of law or public policy all other conditions and provisions
of this Warrant shall nevertheless remain in full force and effect. If the final
judgment of a court of competent jurisdiction or other authority declares that
any term or provision hereof is invalid, void or unenforceable, the undersigned
agrees that the court making such determination shall have the power to reduce
the scope, duration, area or applicability of the term or provision, to delete
specific words or phrases, or to replace any invalid, void or unenforceable term
or provision with a term or provision that is valid and enforceable and that
comes closest to expressing the intention of the invalid or unenforceable term
or provision. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the Issuer shall negotiate in
good faith to modify this Warrant so as to effect the original intent of the
parties as closely as possible in a mutually acceptable manner in order that the
transactions contemplated hereby be consummated as originally contemplated to
the fullest extent possible. 

11.5      All dollar ($)
amounts set forth herein refer to United States dollars. All payments hereunder
and there under will be made in lawful currency of the United States of America.

11.6      The Issuer may
not assign its obligations under this Warrant other than by operation of law or
in connection with a merger or sale of all or substantially all of the Issuer's
assets or stock or a Change in Control of the Issuer. Subject to the terms
hereof and any limitations imposed under applicable law, Holder may assign,
pledge, hypothecate or transfer any of the rights and associated obligations
contemplated by this Warrant, in whole or in part, at its sole discretion
(including, but not limited to, assignments, pledges, hypothecations and
transfers in connection with hedging transactions with respect to this Warrant).

11.7      The Warrant
Shares issuable upon exercise of this Warrant have not been registered under the
Securities Act and, except to the extent provided in the Registration Rights
Agreement of even date herewith by and between the Issuer, the Holder and the
Other Purchasers, the Issuer has not undertaken to so register the Warrant
Shares. Unless so registered, the certificates evidencing the Warrant Shares
will bear a legend restricting their transferability absent registration under
the Securities Act or the availability of an applicable exemption from such
registration.

Exhibit C - Form of Warrant to Purchase Common Stock

Page 8 

NAKED BRAND GROUP,
INC. 

     This Warrant shall not be valid unless
signed by the Issuer. 

Exhibit C - Form of Warrant to Purchase Common Stock

Page 9 

NAKED BRAND GROUP, INC. 

IN WITNESS WHEREOF, the Issuer has caused this Warrant to
Purchase Common Stock to be signed by its duly authorized officer. 

DATED: _________________________

NAKED BRAND GROUP, INC. 

	BY: _____________________________________
	 
	__________________________, 
	AS 
	_________________________________ 
	FACSIMILE NO:
      ___________________________

Exhibit C - Form of Warrant to Purchase Common Stock

Page 10 

NAKED BRAND GROUP, INC. 

EXHIBIT 1 

FORM OF WARRANT NOTICE 
To Be Completed and
Executed Upon Exercise of Warrant 

DATED: _________________

NAKED BRAND GROUP, INC. 
2-34346 MANUFACTURER’S WAY, #2

ABBOTSFORD, B.C. U237MI 

ATTENTION: PRESIDENT 

RE:
EXERCISE OF WARRANT 

Ladies and Gentlemen: 

The undersigned, pursuant to the provisions set forth in the
attached Warrant, hereby irrevocably elects to purchase _____________Warrant
Shares (as defined in the Warrant), and the undersigned herewith makes payment
of the full purchase price for such Warrant Shares at the price per share
provided for in such Warrant, (a) which is a total amount of $___________or (b)
if permitted, the cancellation of such number of Warrant Shares as is necessary,
in accordance with the formula set forth in Section 1.2(b), to exercise this
Warrant with respect to the maximum number of Warrant Shares purchasable
pursuant to the cashless exercise procedure set forth in Section 1.2(b) . Such
cash payment is being made via wire transfer or certified check in lawful money
of the United States. 

The undersigned requests that the certificates for such shares
be issued in the name of, and delivered to 
____________________________________________________________________________________________________
whose address is 
___________________________________________________________________________________________________________________________________________________________________________________.

The undersigned represents and warrants that the
representations and warranties of the undersigned in Section D of the
Subscription Agreement executed by the undersigned are true and accurate with
respect to the undersigned on the date hereof. 

The undersigned represents and warrants that all offers and
sales by the undersigned of the Warrant Shares issuable upon exercise of the
within Warrant shall be made pursuant to registration under the Securities Act,
or pursuant to an exemption from registration under the Securities Act. 

	Dated:
      _________________________________________________________	
	 	 
	 	 
	
	(Signature(s) must conform to name(s)
      of the Holder(s) as specified on the face of the Warrant.) 

	 	 
	 	 
	 	 
	 	 
	 	(Complete Address of Holder(s) of the Warrant)

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