Document:

EXHIBIT 10.7

 

THE SECURITIES REPRESENTED BY THIS WARRANT
HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT (THE “WARRANT SHARES”)
MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT OR UNDER
STATE SECURITIES LAWS. THIS WARRANT AND THE WARRANT SHARES MAY NOT BE PLEDGED, SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED
OF EXCEPT PURSUANT TO THE EXPRESS PROVISIONS OF THIS WARRANT, AND NO SALE, ASSIGNMENT, TRANSFER, OR OTHER DISPOSITION OF THIS WARRANT
SHALL BE VALID OR EFFECTIVE UNLESS AND UNTIL SUCH PROVISIONS SHALL HAVE BEEN COMPLIED WITH.

 

Date of Issuance: March 15, 2013

 

FREDERICK’S OF HOLLYWOOD GROUP INC.

 

Common Stock Purchase Warrant

 

Frederick’s of
Hollywood Group Inc., a New York corporation (the “Company”), for value received, hereby certifies and
agrees that Five Island Asset Management LLC or its registered assigns (the “Registered Holder”), is
entitled, subject to the terms set forth below, to purchase from the Company, on or after the date hereof (the “Date
of Issuance”) for thirty days following the date on which no shares of Series A Preferred Stock remain issued
and outstanding, five million four hundred and sixty eight thousand one hundred twenty seven (5,468,127) duly authorized, validly
issued, fully paid and nonassessable shares of the Company’s common stock, $0.01 par value per share (the “Common
Stock”) at an initial exercise price equal to $0.01 per share, in each case, subject to adjustment in certain cases
as described herein. The shares purchasable upon exercise of this Warrant, and the purchase price per share, are hereinafter referred
to as the “Warrant Shares” and the “Exercise Price,” respectively. The term
“Warrant” as used herein shall include this Warrant and any other warrants delivered in substitution
or exchange therefor, as provided herein.

 

This Warrant is issued
pursuant to that certain Series B Preferred Stock Purchase Agreement of even date herewith between the Company and the Registered
Holder (the “Purchase Agreement”). The Warrant Shares are entitled to the benefits of the registration
rights set forth in the Purchase Agreement and the annexes and exhibits thereto.

 

    	 

    	 

    

  

1.                 
Exercise.

 

1.1             
Method of Exercise.

 

(a)               
Reference is hereby made to those certain shares of Series A Convertible Preferred Stock issued by the Company on May 23,
2012 with an initial conversion price of $1.05 (with any “paid in kind” dividends being convertible at $0.45) (the
“Corresponding Security”). This Warrant may only be exercised by the Registered Holder, in whole or in
part, (x) upon the conversion of the Corresponding Security by the holder thereof and (y) by surrendering this Warrant, with a
Notice of Exercise in the form of Annex A hereto duly executed by such Registered Holder or by such Registered Holder’s
duly authorized attorney, at the principal office of the Company set forth in Section 10 hereof, or at such other office or agency
as the Company may designate in writing pursuant to Section 10 hereof, accompanied by payment in full with good, cleared funds,
in lawful money of the United States, of the Exercise Price payable in respect of the number of shares of Warrant Shares purchased
upon such exercise or by a cashless exercise pursuant to Section 1.2 below.

 

(b)              
The Company shall provide written notice to the Registered Holder of this Warrant immediately upon the receipt of any notice
of conversion of a Corresponding Security.

 

(c)               
Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the date
of its surrender as provided in Section 1.1(a) hereof. At such time, the person or persons in whose name or names any certificates
for Warrant Shares shall be issuable upon such exercise as provided in Section 1.1(d) hereof shall be deemed to have become the
holder or holders of record of the Warrant Shares represented by such certificates.

 

(d)              
As soon as practicable after the exercise of this Warrant, in full or in part, and in any event within ten (10) days thereafter,
the Company, at its expense, will cause to be issued in the name of, and delivered to, the Registered Holder, or as such Registered
Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct.

 

(i)                
a certificate or certificates for the number of full Warrant Shares to which such Registered Holder shall be entitled upon
such exercise (or evidence that such Warrant Shares have been issued in the name of the Registered Holder in book entry form) plus,
in lieu of any fractional share to which such Registered Holder would otherwise be entitled, cash in an amount determined pursuant
to Section 3 hereof; and

 

(ii)              
in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, representing in
the aggregate on the face or faces thereof the number of Warrant Shares equal (without giving effect to any adjustment therein)
to the number of such shares called for on the face of this Warrant minus the number of such shares purchased by the Registered
Holder upon such exercise as provided herein.

 

1.2             
Cashless Exercise of Warrant. In addition to the method of payment set forth in Section 1.1 and in lieu of
any cash payment required thereunder, the Registered Holder may elect to receive the number of shares of Common Stock equal to
the product of (x) the number of Warrant Shares multiplied by (y) a fraction, the numerator of which is the Market Value (as defined
below) of the Common Stock less the Exercise Price and the denominator of which is such Market Value. As used herein, the phrase
“Market Value” at any date shall be deemed to be the volume weighted average of the last reported sale
prices of the Common Stock for the last ten (10) Trading Days prior to the date of exercise, as officially reported by the principal
securities exchange on which the Common Stock is listed or admitted to trading, or, if the Common Stock is traded “over
the counter”, by a quotation system (including the pink sheets or Nasdaq OTC Electronic Bulletin Board) covering such trades
or if the Common Stock is not listed or admitted to trading on any national securities exchange or sold “over the counter,”
the average closing bid price as furnished by the Financial Industry Regulatory Authority through Nasdaq or similar organization
if Nasdaq is no longer reporting such information, or if the Common Stock is not quoted on Nasdaq or traded “over the counter,”
as determined in good faith by resolution of the Board of Directors of the Company (the “Board of Directors”),
based on the best information available to it. “Trading Day” shall mean a day during which trading in
securities generally occurs in the applicable securities market or on the principal securities exchange or bulletin board on which
the Common Stock is then traded, listed or quoted.

 

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2.                 
Shares to be Fully Paid; Reservation of Shares. The Company covenants that all shares of Common Stock which
may be issued upon the exercise of the rights represented by this Warrant will, upon issuance by the Company, be duly and validly
issued, fully paid and nonassessable, and free from preemptive rights and free from all taxes, liens, duties and charges with
respect thereto and, in addition, the Company covenants that it will from time to time take all such action as may be requisite
to assure that the par value per share of the Common Stock is at all times equal to or less than the effective Exercise Price.
The Company further covenants that, from and after the Date of Issuance and during the period within which the rights represented
by this Warrant may be exercised, the Company will at all times have authorized and reserved, free from preemptive rights, out
of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant, a sufficient
number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant. If at any time the number
of authorized but unissued shares of Common Stock shall not be sufficient to effect the exercise of this Warrant, the Company
shall take any and all corporate action as is necessary to increase its authorized but unissued shares of Common Stock to such
number of shares as shall be sufficient for such purpose. The Company will take all such action within its control as may be necessary
on its part to assure that all such shares of Common Stock may be so issued without violation of any applicable law or regulation,
or of any requirements of any national securities exchange upon which the Common Stock of the Company may be listed.

 

3.                 
Fractional Shares. The Company shall not be required upon the exercise of this Warrant to issue any fractional
shares, but shall make an adjustment therefor in cash on the basis of the Market Value for each fractional share of the Company’s
Common Stock which would be issuable upon exercise of this Warrant.

 

4.                 
Requirements for Transfer.

 

(a)               
Warrant Register. The Company will maintain a register (the “Warrant Register”) containing
the names and addresses of the Registered Holder or Registered Holders. Any Registered Holder of this Warrant or any portion thereof
may change its address as shown on the Warrant Register by written notice to the Company requesting such change, and the Company
shall promptly make such change. Until this Warrant is transferred on the Warrant Register of the Company, the Company may treat
the Registered Holder as shown on the Warrant Register as the absolute owner of this Warrant for all purposes, notwithstanding
any notice to the contrary, provided, however, that if and when this Warrant is properly assigned in blank, the Company may, but
shall not be obligated to, treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to
the contrary.

 

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(b)              
Warrant Agent. The Company may, by written notice to the Registered Holder, appoint an agent for the purpose of maintaining
the Warrant Register referred to in Section 4(a) hereof, issuing the Common Stock issuable upon the exercise of this Warrant, exchanging
this Warrant, replacing this Warrant or any or all of the foregoing. Thereafter, any such registration, issuance, exchange, or
replacement, as the case may be, may be made at the office of such agent.

 

(c)               
Transfer. Subject to the provisions of applicable securities laws and this Section 4, this Warrant and all rights
hereunder are transferable, in whole or in part, upon the surrender of this Warrant with a properly executed Assignment Form in
substantially the form attached hereto as Annex B (the “Assignment”) at the principal office of
the Company.

 

(d)              
Exchange of Warrant Upon a Transfer. On surrender of this Warrant for exchange, properly endorsed on the Assignment
and subject to the provisions of this Warrant and limitations on assignments and transfers as contained in this Section 4, the
Company at its expense shall issue to or on the order of the Registered Holder a new warrant or warrants of like tenor, in the
name of the Registered Holder or as the Registered Holder (on payment by the Registered Holder of any applicable transfer taxes)
may direct, for the number of shares issuable upon exercise hereof.

 

5.                 
Adjustments and Other Rights. The Exercise Price and the number of Warrant Shares issuable upon exercise
of this Warrant shall be subject to adjustment from time to time as follows; provided,
that if more than one subsection of this Section 5 is applicable to a single event, the subsection shall be applied that
produces the largest adjustment and no single event shall cause an adjustment under more than one subsection of this Section 5
so as to result in duplication.

 

5.1             
Stock Dividends – Split-Ups. If after the Date of Issuance, and subject to the provisions of Section
5.9 below, the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock,
or by a split-up of shares of Common Stock, or other similar event, then, on the effective date of such stock dividend, split-up
or similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be increased in proportion to
such increase in outstanding shares of Common Stock.

 

5.2             
Aggregation of Shares. If after the Date of Issuance, and subject to the provisions of Section 5.9, the number
of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification of
shares of Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split,
reclassification or similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be decreased
in proportion to such decrease in outstanding shares of Common Stock.

 

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5.3             
Adjustments in Exercise Price. Whenever the number of shares of Common Stock purchasable upon the exercise
of the Warrants is adjusted, as provided in Sections 5.1 and 5.2 above, the Exercise Price shall be adjusted (to the nearest
cent) by multiplying such Exercise Price immediately prior to such adjustment by a fraction (x) the numerator of which shall be
the number of shares of Common Stock purchasable upon the exercise of the Warrants immediately prior to such adjustment, and (y)
the denominator of which shall be the number of shares of Common Stock so purchasable immediately thereafter.

 

5.4             
Replacement of Securities upon Reorganization, Etc. In case of any reclassification or reorganization of
the outstanding shares of Common Stock (other than a change covered by Section 5.1 or 5.2 hereof or that solely affects the par
value of such shares of Common Stock), or in the case of any merger or consolidation of the Company with or into another corporation
(other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification
or reorganization of the outstanding shares of Common Stock), or in the case of any sale or conveyance to another corporation
or entity of all or substantially all of the assets or all or substantially all other property of the Company, as an entirety
or substantially as an entirety, in connection with which the Company is dissolved, the Registered Holder shall thereafter have
the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the
shares of Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented
thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification,
reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the Registered Holder
would have received if such Registered Holder had exercised his, her or its Warrant(s) immediately prior to such event; and if
any reclassification also results in a change in the number of shares of Common Stock covered by Section 5.1 or 5.2, then such
adjustment shall be made pursuant to Sections 5.1, 5.2, 5.3 and this Section 5.4. The provisions of this Section 5.4 shall similarly
apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers.

 

5.5             
Sale of Shares Below Conversion Price of Corresponding Security.

 

(a)               
If at any time, or from time to time, there occurs any event or circumstance that results in a change in the conversion
price of the Corresponding Security, then and in each such case, as of the opening of business on the date of such issue or sale
(any such issuance or sale, a “Qualifying Dilutive Issuance”), the number of Warrant Shares issuable
upon the exercise of this Warrant immediately prior to the issuance or sale of Additional Shares of Common Stock (the “Initial
Number”) shall be increased to the number obtained by multiplying the Initial Number by a fraction (A) the numerator
of which shall be the conversion price of the Corresponding Security in effect immediately prior to the issuance or sale of Additional
Shares of Common Stock and (B) the denominator of which shall be the new conversion price of the Corresponding Security immediately
after the issuance or sale of Additional Shares of Common Stock.

 

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5.6             
Dividends on Series A Convertible Preferred Stock of the Company.
If, after the date hereof, the Company issues shares of Series A Convertible Preferred Stock of the Company (“Series
A Preferred”) as a dividend on any shares of any then outstanding Series A Preferred, including shares of Series
A Preferred previously issued in payment of a dividend on any shares of Series A Preferred (the “Series A PIK Dividend
Shares”), and does not contemporaneously issue shares of Series B Convertible Preferred Stock of the Company (“Series
B Preferred”) as a dividend on any shares of any then outstanding Series B Preferred, including shares of Series
B Preferred previously issued in payment of a dividend on any shares of Series B Preferred if a dividend on any such shares is
then required to be made, then the number of Warrant Shares issuable upon exercise of this Warrant shall be increased by the number
of shares of Common Stock into which such Series A PIK Dividend Shares are convertible; provided, however, that in the event the
Series B Preferred is converted pursuant to its terms or otherwise redeemed, the number of additional Warrant Shares issuable upon
exercise of this Warrant pursuant to this Section 5.6 shall be proportionately reduced in relation to the number of Series B Preferred
so converted or redeemed. 

5.7             
Other Events. For so long as the Registered Holder holds this Warrant
or any portion thereof, if any event occurs as to which the provisions of this Section 5 are not strictly applicable or, if
strictly applicable, would not, in the good faith judgment of the Board of Directors, fairly and adequately protect the purchase
rights of the Warrants in accordance with the essential intent and principles of such provisions, then the Board of Directors shall
make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall
be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such purchase rights as aforesaid. The
Exercise Price or the number of Warrant Shares into which this Warrant is exercisable shall not be adjusted in the event of a change
in the par value of the Common Stock or a change in the jurisdiction of incorporation of the Company.

5.8             
Adjustment Rules. Any adjustments pursuant to this Section 5
shall be made successively whenever an event referred to herein shall occur.

 

5.9             
Form of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section
5, and Warrants issued after such adjustment may state the same Exercise Price and the same number of shares as is stated in the
Warrants initially issued pursuant to the Purchase Agreement. However, the Company may at any time in its sole discretion make
any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any
Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, shall
be in the form as so changed.

5.10         
Payment of Taxes. The Company will pay all taxes (other than taxes
based upon income) and other governmental charges that may be imposed with respect to the issue or delivery of shares of Common
Stock upon exercise of the Warrant, excluding any tax or other charge imposed in connection with any transfer involved in the issue
and delivery of shares of Common Stock in a name other than that in which the Warrants so exercised were registered.

6.                 
No Impairment. The Company will not, by amendment of its Certificate of Incorporation, as amended (the “Certificate
of Incorporation”), or through any reorganization, recapitalization, sale or transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant but will at all times in good faith carry out all such terms and take all such actions as
may be reasonably necessary or appropriate in order to protect the rights herein of the holder of this Warrant against dilution
or other impairment.

 

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7.                 
Notices of Record Date, Etc. In case the Company shall take a record of the holders of its Common Stock (or
other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling
them to receive any dividend or other distribution, or to receive 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 of any capital reorganization of the Company, any reclassification
of the capital stock of the Company, any consolidation or merger of the Company with or into another corporation (other than a
consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially all of the assets
of the Company; or of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, then, and in each such
case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may
be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount
and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification,
consolidation, merger, transfer, dissolution, liquidation or winding-up 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 other stock or securities at the time deliverable upon the exercise
of this Warrant) 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, transfer, dissolution, liquidation
or winding-up. The Company will use commercially reasonable efforts to cause such notice to be mailed promptly, and in any event,
at least ten (10) business days prior to the record date or effective date for the event specified in such notice unless such
prior notice is waived by the Registered Holder in writing.

 

8.                 
No Rights of Shareholders

 

. Subject to other
Sections of this Warrant and the provisions of the Purchase Agreement and the Certificate of Incorporation, the Registered Holder
shall not be entitled to vote, to receive dividends or subscription rights, nor shall anything contained herein be construed to
confer upon the Registered Holder, as such, any of the rights of a shareholder of the Company, including without limitation any
right to vote for the election of directors or upon any matter submitted to shareholders, to give or withhold consent to any corporate
action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value or change of stock
to no par value, consolidation, merger, conveyance, or otherwise), to receive notices, or otherwise, until the Warrant shall have
been exercised as provided herein.

 

9.                 
Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement
reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company
will issue, in lieu thereof, a new Warrant of like tenor.

 

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10.             
Mailing of Notices, Etc. All notices, requests, consents, and other communications in connection with this
Warrant shall be in writing and shall be deemed delivered (i) three (3) business days after being sent by registered or certified
mail, return receipt requested, postage prepaid, (ii) one (1) business day after being sent via a reputable overnight courier
service guaranteeing next business day delivery in the Registered Holder’s country or region, or (iii) on actual receipt
if delivered by facsimile or by hand, in each case delivery shall be made to the intended recipient as set forth below:

 

If to the Company:

 

Frederick’s of Hollywood Group Inc.

6255 Sunset Blvd., 6th Floor

Hollywood, CA 90028

Facsimile No.: (323) 464−4219

Attention: Thomas J. Lynch, Chief Executive Officer

 

With a copy to:

 

Graubard Miller

405 Lexington Avenue

New York, New York 10174

Facsimile No.: (212) 818−8881

Attention: David Alan Miller, Esq.

 

If to the Registered Holder:

 

To the address set
forth in the Warrant Register as described in Section 4 hereof.

 

11.             
Change or Waiver. Any term of this Warrant may be changed or waived only by an instrument in writing signed
by the party against which enforcement of the change or waiver is sought.

 

12.             
Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise
affect the meaning of any provision of this Warrant.

 

13.             
Severability. If any provision of this Warrant shall be held to be invalid and unenforceable, such invalidity
or unenforceability shall not affect any other provision of this Warrant.

 

14.             
Governing Law and Submission to Jurisdiction. This Warrant will be governed by and construed in accordance
with the laws of the State of New York without regard to principles of conflict or choice of laws of any jurisdiction (other than
§ 5-1401 of the New York General Obligations Law). The parties hereby agree that any action, proceeding or claim against
it arising out of, or relating in any way to this Warrant shall be brought and enforced in the courts of the State of New York,
and irrevocably submit to such jurisdiction, which jurisdiction shall be exclusive.

 

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15.             
Supplements and Amendments. The Company and the Registered Holder may from time to time supplement or amend
this Warrant in order to cure any ambiguity, to correct or supplement any provision contained herein which may be defective or
inconsistent with any provision herein, or to make any other provisions in regard to matters or questions arising hereunder which
the Company and the Registered Holder may deem necessary or desirable.

 

16.             
Successors. All the covenants and provisions of this Warrant shall be binding upon and inure to the benefit
of the Company and the Registered Holder and their respective successors and assigns hereunder.

 

17.             
Benefits of this Warrant. Nothing in this Warrant shall be construed to give to any person, entity or corporation
other than the Company and the Registered Holder of the Warrant any legal or equitable right, remedy or claim under this Warrant;
and this Warrant shall be for the sole and exclusive benefit of the Company and the Registered Holder of the Warrant.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, FREDERICK’S
OF HOLLYWOOD GROUP INC. has caused this Warrant to be signed by its duly authorized officers under its corporate seal and to be
dated on the day and year first written above.

 

 

	 	FREDERICK’S OF HOLLYWOOD GROUP INC.
	 	 
	 	By: 	/s/ Thomas J. Lynch
	 	Name:	Thomas J. Lynch
	 	Title:	Chief Executive Officer

 

    	 

    	 

    

ANNEX A

 

NOTICE OF EXERCISE FORM

 

	To: 	Dated:

 

In accordance with
the Warrant enclosed with this Form of Election to Purchase, the undersigned hereby irrevocably elects to purchase _____________
shares of common stock (“Common Stock”), $.01 par value per share, of Frederick’s of Hollywood
Group Inc. (“Company”) and encloses herewith $________ in cash, certified or official bank check or checks
or other immediately available funds, which sum represents the aggregate Exercise Price (as defined in the Warrant) for the number
of shares of Common Stock to which this Form of Election to Purchase relates, together with any applicable taxes payable by the
undersigned pursuant to the Warrant.

 

or

 

In accordance with
the Warrant enclosed with this Form of Election to Purchase, the undersigned hereby irrevocably elects to purchase ____________
shares of common stock (“Common Stock”), $.01 par value per share, of Frederick’s of Hollywood
Group Inc. (“Company”) by surrender of the unexercised portion of the attached Warrant (with a “Market
Value” of $____).

 

The undersigned hereby
represents, warrants to, and agrees with, the Company that:

 

(i) He/She/It is acquiring
the Warrant Shares for his/her/its own account and not with a view towards the distribution thereof;

 

(ii) He/She/It has
received a copy of all reports and documents required to be filed by the Company with the United States Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as amended, within the last 12 months and all reports issued by the
Company to its shareholders;

 

(iii) He/She/It understands
that he/she/it must bear the economic risk of the investment in the Warrant Shares, which cannot be sold unless they are registered
under the Securities Act of 1933 (the “Securities Act”) or an exemption therefrom is available thereunder
and that the Company is under no obligation to register the Warrant Shares for sale under the Securities Act;

 

(iv) He/She/It is aware
that the Company shall place stop transfer orders with its transfer agent against the transfer of the Warrant Shares in the absence
of registration under the Securities Act or an exemption therefrom as provided herein;

 

	Signature: 	 
	 	 
	Address: 	 

 

 

    	 

    	 

    

 

ANNEX B

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED,
_________________________________ hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant
with respect to the number of shares of Common Stock covered thereby set forth below, unto:

 

	
        Name
of Assignee
	
        Address
	
        No.
of Shares 

	 	 	 
	 	 	 
	 	 	 

 

 

	Dated:	 
	 	 
	Signature:	 
	 	 
	Dated:	 
	 	 
	Witness:EXHIBIT 10.8

 

 

INDEMNIFICATION
AGREEMENT

 

THIS INDEMNIFICATION
AGREEMENT (this "Agreement") made as of March [__], 2013 by and between Frederick's of Hollywood
Group Inc., a New York corporation with its principal office 6255 Sunset Blvd., 6th Floor, Hollywood, CA 90028 (the "Corporation"),
and __________________, a Director of the Corporation residing at _________________ ("Indemnitee").

 

W I T
N E S S E T H :

 

WHEREAS, the Corporation
seeks to attract and retain the most capable persons available to serve as its directors and officers;

 

WHEREAS, such persons
require substantial protection against personal liability arising out of their faithful service to the Corporation;

 

WHEREAS, in recognition
of the Corporation's desire to have the Indemnitee serve on its Board of Directors (the "Board"), and as
a material inducement to Indemnitee's willingness to serve on the Board, the Corporation desires to provide Indemnitee with the
right to indemnification and advancement of expenses and Indemnitee desires to receive such right, all upon the terms and subject
to the conditions contained herein; and

 

WHEREAS, the Corporation
and Indemnitee believe it desirable to enter into agreements to reflect indemnification and advancement of expenses arrangements.

 

NOW, THEREFORE, in
consideration of the foregoing premises, Indemnitee's continued service to the Corporation and the mutual covenants contained herein,
the parties hereby agree as follows:

 

1.                 
Certain Terms Defined. As used in this Agreement, the following terms shall have the following meanings:

 

(a)               
The term "Action" shall mean any action or proceeding, whether civil, criminal, administrative,
investigative or otherwise, and including one by or in the right of the Corporation or by or in the right of any other Covered
Entity which Indemnitee served in any capacity at the request of the Corporation.

 

(b)              
The term "Covered Entity" shall mean the Corporation and any other corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other entity or enterprise (as well as any domestic or foreign
predecessor entity of each such entity in a merger, consolidation or other transaction) of which Indemnitee is, was or may be deemed
to be serving at the request of the Corporation as director, officer, employee, partner (limited or general), trustee, agent or
fiduciary.

 

(c)               
The term "Expenses" shall include all attorneys' fees, retainers, court and arbitration costs, transcript
costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, scanning and data processing
charges, electronic legal research and other database charges, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or
defend, investigating, being or preparing to be a witness in, or otherwise participating in, an Action.  Expenses also shall
include (i) expenses incurred in connection with any appeal resulting from any Action, including the premium, security for,
and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) expenses incurred
by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, by litigation
or otherwise. 

 

    	 

    	 

    

  

 

(d)              
The term "Losses" shall mean Expenses, judgments, costs, fines (including any excise tax assessed
with respect to any employee benefit plan) and amounts paid in settlement actually incurred by Indemnitee.

 

2.                 
Right to Indemnification. The Corporation hereby irrevocably agrees to indemnify Indemnitee to the fullest
extent permitted by New York law, as in effect on the date hereof. Subject to the terms set forth in this Agreement, the Corporation
shall indemnify Indemnitee if Indemnitee is made, or is threatened to be made, a party to any Action by reason of the fact that
Indemnitee is or was a director of the Corporation, or served another Covered Entity in any capacity, against Losses incurred as
a result of such Action or any appeal thereof.

 

3.                 
Limitation on Indemnification. Indemnitee shall not be entitled to indemnification under Section 2 if
a judgment or other final adjudication adverse to Indemnitee establishes that (i) Indemnitee's acts were committed in bad
faith or were the result of active and deliberate dishonesty and, in either case, were material to the cause of action so adjudicated,
or (ii) Indemnitee personally gained in fact a financial profit or other advantage to which Indemnitee was not legally entitled.

 

4.                 
Indemnification for Expenses of an Indemnitee Upon Whole or Partial Success.  To the fullest extent permitted
by New York law and to the extent that Indemnitee is a party to (or a participant in) any Action and is successful, on the merits
or otherwise, such that Indemnitee would be entitled to indemnification under this Agreement or New York law in such Action, or
in the defense of any claim, issue or matter therein, in whole or in part, the Corporation shall indemnify Indemnitee against all
Expenses actually incurred by him in connection therewith.  If Indemnitee is not wholly successful, on the merits or otherwise,
such that Indemnitee would be entitled to indemnification under this Agreement or New York law in such Action, the Corporation
also shall indemnify Indemnitee against all Expenses incurred in connection with such successfully resolved claim(s), issue(s)
or matter(s) and each claim, issue, or matter related to each successfully resolved claim(s), issue(s) or matter(s).  For
purposes of this Section 4, the termination of any claim, issue or matter in such an Action prior to final adjudication on
the merits, including, without limitation, by settlement or dismissal, with or without prejudice, without any express finding of
liability or guilt against Indemnitee such that Indemnitee would not be entitled to indemnification under this Agreement or New
York law, shall be deemed to be a successful result as to such claim, issue or matter.

 

5.                 
Indemnification For Expenses of a Witness.  To the fullest extent permitted by New York law, Indemnitee
shall be indemnified against any and all Expenses actually incurred by Indemnitee to the extent that Indemnitee is a witness in
any Action to which Indemnitee is not a party.

 

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6.                 
Advances of Expenses.

 

(a) At the
written request of Indemnitee, the Corporation shall advance to Indemnitee any and all Expenses incurred or to be incurred by Indemnitee
in defending any Action in advance of the final disposition of such Action.

 

(b)Indemnitee hereby
agrees and undertakes to repay such advanced amounts (or appropriate portions thereof) as to which it is finally determined by
a court of competent jurisdiction after exhaustion of all appeals that Indemnitee was not entitled to such advanced amounts from
the Corporation; provided that this undertaking shall be effective only if and to the extent that, by law, it must be enforced
as a condition to the receipt by Indemnitee of advanced Expenses under this Section 6.

 

7.                 
Payment by Corporation. The Corporation shall pay the indemnification requested under Section 2 and advance
the Expenses requested under Section 6 promptly following receipt by the Corporation of Indemnitee's written request therefor
and, in any event, no later than twenty (20) days after such receipt (in the case of requested indemnification) or seven (7) days
after such receipt (in the case of requested advanced Expenses).

 

8.                 
Indemnification for Additional Expenses. The Corporation shall indemnify Indemnitee against any and all Expenses
and, if requested by Indemnitee, shall (within two (2) business days of such request) advance such Expenses to Indemnitee, which
are incurred or to be incurred by Indemnitee in connection with any action brought by Indemnitee for (i) indemnification or
advanced Expenses by the Corporation under this Agreement or any other agreement or the Corporation's Certificate of Incorporation
or By-laws now or hereafter in effect relating to claims made against Indemnitee for which indemnification or advanced Expenses
will or could be sought under this Agreement and/or (ii) recovery under any directors' and officers' liability insurance policies
maintained by the Corporation, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification,
advanced Expenses or insurance recovery, as the case may be.

 

9.                 
Burden of Proof. In connection with any determination as to whether Indemnitee is entitled to be indemnified
hereunder the burden of proof by clear and convincing evidence shall be on the Corporation to establish that Indemnitee is not
so entitled.

 

10.             
Presumptions.

 

(a)               
For purposes of any determination as to whether Indemnitee acted in bad faith, Indemnitee shall be deemed to have acted
in good faith if Indemnitee acted in reliance on the records or books of account of a Covered Entity, including its financial statements,
or on information supplied to Indemnitee by the officers of a Covered Entity in the course of their duties, or on the advice of
legal counsel for the Covered Entity or on information or records given or reports made to the Covered Entity by an independent
certified public accountant or by an appraiser or other expert of the Covered Entity selected with reasonable care. The provisions
of this Section 10 shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be
deemed to be entitled to indemnification.

 

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(b)              
If Indemnitee has acted in good faith and in a manner he reasonably believed to be in the best interests of the participants
and beneficiaries of an employee benefit plan, Indemnitee shall be conclusively deemed not to have acted in "bad faith"
as referred to in this Agreement.

 

(c)               
For purpose of determining whether Indemnitee personally gained in fact a financial profit or other advantage to which he
was not legally entitled, to the fullest extent permitted by law, the Corporation's determination shall be based upon whether Indemnitee
actually received an improper personal benefit in money, property or services.

 

(d)              
The knowledge or actions, or failure to act, of any director, officer, agent or employee of the Covered Entity shall not
be imputed upon Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

11.             
Enforcement.

 

(a)               
 The right of Indemnitee to indemnification and advancement of Expenses provided by this Agreement shall be enforceable
by Indemnitee in any court of competent jurisdiction. In such an enforcement action, the burden by clear and convincing evidence
shall be on the Corporation to prove that the indemnification and advancement of Expenses being sought are not appropriate. Neither
the failure of the Corporation to determine whether indemnification or the advancement of Expenses is proper in the circumstances
nor an actual determination by the Corporation thereon adverse to Indemnitee shall constitute a defense to the action or create
a presumption that Indemnitee is not so entitled.

 

(b)              
Without limiting the scope of indemnification to which Indemnitee is entitled under this Agreement, (i) if Indemnitee
has been successful on the merits or otherwise in the defense of an Action, Indemnitee shall be entitled to indemnification forthwith
as authorized in Section 2 and (ii) the termination of any Action by judgment, settlement, conviction or plea of nolo
contendere or its equivalent shall not in itself create a presumption that Indemnitee has not met the standard of conduct required
for indemnification under this Agreement.

 

12.             
Non-Exclusivity. Nothing contained in this Agreement shall limit the right to indemnification and advancement
of Expenses to which Indemnitee would be entitled by law in the absence of this Agreement, or shall be deemed exclusive of any
other rights to which Indemnitee in seeking indemnification or advancement of Expenses may have or hereafter be entitled under
any law, provision of the Certificate of Incorporation, By-Laws, agreement approved by or resolution of the Board, or resolution
of shareholders of the Corporation.

 

13.             
Liability Insurance. The Corporation shall use reasonable best efforts to at all times maintain an insurance
policy or policies providing directors' and officers' liability insurance, and Indemnitee shall be added as a named insured on
all such policies in effect as of the date of this Agreement and, thereafter, from time to time, and the Corporation shall use
reasonable best efforts to take all steps necessary from time to time to ensure that Indemnitee remains covered by such policy
or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any director or officer
of the Corporation. If at any time the Corporation receives a demand for indemnification or advanced Expenses, the Corporation
shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in
such insurance policies. The Corporation shall thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

    	4

    	 

    

  

14.             
Other Indemnitors.

 

(a)               
The Corporation hereby acknowledges that Indemnitee may have other rights to indemnification for Losses ("Other
Indemnitor(s)"). The Corporation agrees that the Corporation is the indemnitor of first resort of Indemnitee with
respect to matters for which indemnification is provided under this Agreement and that the Corporation will be obligated to make
all payments due to or for the benefit of Indemnitee under this Agreement without regard to any rights that Indemnitee may have
against the Other Indemnitor(s). The Corporation hereby waives any equitable rights to contribution or indemnification from the
Other Indemnitor(s) in respect of any amounts paid to Indemnitee hereunder. The Corporation further agrees that no payment of Expenses
or Losses by the Other Indemnitor to or for the benefit of Indemnitee shall affect the obligations of the Corporation hereunder,
and that the Corporation shall be obligated to repay the Other Indemnitor(s) for all amounts so paid or reimbursed to the extent
that the Corporation has an obligation to indemnify Indemnitee for such Expenses or Losses hereunder.

 

(b)              
In the event that any Other Indemnitor makes any payment of Expenses or Losses to or for the benefit of Indemnitee for which
Indemnitee has sought indemnification from the Corporation, the Other Indemnitor making such payment shall have a right of contribution
and/or be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee against the Corporation, and
Indemnitee shall execute all papers reasonably required and take all action reasonably necessary to secure such rights, including,
without limitation, execution of such documents as are necessary to enable such other person or entity to bring suit to enforce
such rights. The Corporation and Indemnitee agree that each Other Indemnitor is an express third party beneficiary of the terms
of this Section 14, entitled to enforce this Section 14 as though each such Other Indemnitor was a party to this Agreement.

 

15.             
Period of Limitations. No legal action shall be brought and no cause of action shall be asserted by or in
the right of the Corporation against Indemnitee, Indemnitee's spouse, heirs, executors or personal or legal representatives after
the expiration of one (1) year from the date of accrual of such cause of action, and any claim or cause of action of the Corporation
shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such one-year period; provided,
however, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period
shall govern.

 

    	5

    	 

    

 

 

16.             
Notice of Claim. As a condition precedent to the right to be indemnified under this Agreement, Indemnitee
shall give the Corporation written notice as soon as practicable of any claim made against Indemnitee for which indemnification
or advancement of Expenses will or could be sought under this Agreement; provided, however, that the failure by Indemnitee
to notify the Corporation of such claim will not relieve the Corporation from any obligation or liability under this Agreement
unless and only to the extent that such failure to provide such notice is irreparably prejudicial to the Corporation. In addition,
Indemnitee shall give the Corporation such information and cooperation as the Corporation reasonably may require in connection
with a Claim; provided, that, Indemnitee shall not be required to provide any documentation or information to the
extent that the provision thereof would undermine or prejudice Indemnitee's position in, rights under, or defense of such Claim,
or undermine or jeopardize the attorney-client privilege. With respect to any Action or Claim, the Corporation will have the opportunity
to consult with Indemnitee as to the procedure to be followed in defending, settling, or compromising the Action or Claim and,
except as provided herein, Indemnitee may not consent to any settlement or compromise of the Action or Claim without the written
consent of the Corporation, which may (a) be given by electronic mail and (b) not be unreasonably withheld, conditioned or delayed;
provided, however, that if Indemnitee reasonably believes that time would be of the essence in settling or compromising
such Action or Claim, Indemnitee may so settle or compromise such Action or Claim without first consulting with, or receiving the
consent of, the Corporation. Notwithstanding the foregoing, in no event shall consent of the Corporation be required with respect
to any settlement or compromise (or portion thereof) that would not result in the Corporation being liable to indemnify Indemnitee
hereunder.

 

17.             
Severability and Validity

 

. Each of the provisions of this Agreement
is a separate and distinct agreement and independent of the others, so that if any provision of this Agreement is held to be invalid,
unenforceable or otherwise illegal for any reason, such invalidity or unenforceability shall not affect the other provisions of
this Agreement and any provision so held to be invalid or unenforceable or otherwise illegal will be reformed to the extent, and
only to the extent, necessary to make it enforceable, valid or legal. Upon such determination that any term or other provision
is invalid, unenforceable or otherwise illegal, the parties hereto shall negotiate in good faith to modify this Agreement 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 greatest extent possible.

 

18.             
Continuity of Rights.

 

(a)The right of
Indemnitee to indemnification and advancement of Expenses under this Agreement shall (i) continue after Indemnitee has ceased
to serve in any capacity which would entitle Indemnitee to indemnification or advancement of Expenses pursuant to this Agreement
with respect to acts or omissions occurring prior to such cessation, (ii) inure to the benefit of the heirs, executors and
administrators of Indemnitee, (iii) apply with respect to acts or omissions occurring prior to the execution and delivery
of this Agreement to the fullest extent permitted by law and (iv) survive any restrictive amendment or termination of this
Agreement with respect to events occurring prior thereto.

 

    	6

    	 

    

  

19.             
Actions Initiated by Indemnitee. Other than to the extent provided in Section 8, Indemnitee shall not
be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Action initiated by Indemnitee,
but shall be entitled to indemnification and advancement of Expenses with respect to any counterclaim or third-party claim in any
such Action.

 

20.             
Fees and Expenses of Enforcement. It is the intent of the Corporation that Indemnitee not be required to incur
legal fees and/or other Expenses associated with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement
by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended
to Indemnitee hereunder. Accordingly, without limiting the generality or effect of any other provision hereof, if it should appear
to Indemnitee that the Corporation has failed to comply with any of its obligations under this Agreement or in the event that the
Corporation or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes
any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended
to be provided to Indemnitee hereunder, the Corporation irrevocably authorizes Indemnitee from time to time to retain counsel of
Indemnitee's choice, at the expense of the Corporation, to advise and represent Indemnitee in connection with any such interpretation,
enforcement or defense, including without limitation the initiation or defense of any litigation or other legal action, whether
by or against the Corporation or any director, officer, shareholder or other person affiliated with the Corporation. Without respect
to whether Indemnitee prevails, in whole or in part, in connection with any of the foregoing, the Corporation will pay and be solely
financially responsible for any and all attorneys' and related fees and expenses incurred by Indemnitee in connection with any
of the foregoing.

 

21.             
Specific Performance. The parties recognize that if any provision of this Agreement is violated by the Corporation,
Indemnitee may be without an adequate remedy at law. Accordingly, in the event of any such violation, Indemnitee shall be entitled,
if Indemnitee so elects, to institute proceedings, either in law or at equity, to obtain damages, to enforce specific performance,
to enjoin such violation, or to obtain any other relief or any combination of the foregoing as Indemnitee may elect to pursue.

 

22.             
Binding Effect. This Agreement shall be binding upon all successors and assigns of the Corporation (including
any transferee of all or substantially all of its assets and any successor by merger or operation of law) and shall inure to the
benefit of the heirs, personal representatives, successors, representatives and estate of Indemnitee.

 

23.             
Governing Law. This Agreement shall be governed by, and be construed and enforced in accordance with, the
laws of the State of New York applicable to contracts made and to be performed in such state, without giving effect to the principles
of conflicts of laws (other than § 5-1401 of the New York General Obligations Law).

 

24.             
Effect of Headings. The section headings herein are for convenience only and shall not affect the construction
hereof.

 

    	7

    	 

    

  

25.             
Notices.

 

(a)Any notice,
request or other communication hereunder to or on behalf of the Corporation or Indemnitee shall be in writing and shall be delivered
to the other party hereto at the address shown on the first page hereof (in the case of the Corporation, addressed to the attention
of the Board). Any such notice, request or other communication shall be deemed delivered one business day after sent by Federal
Express, Express Mail or similar overnight delivery service or, if sent otherwise, then upon the receipt thereof at that address.

 

(b)              
Either address referred to in the preceding subsection may be changed from time to time in the manner specified in the preceding
subsection, and thereafter notices, requests and other communications shall be delivered to the most recent address so furnished.

 

26.             
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 Agreement. Counterparts may be delivered via facsimile, electronic
mail (including pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly
delivered and be valid and effective for all purposes.

 

27.             
Effective Date. This Agreement shall become effective on the first day on which Indemnitee commences service
as a director of the Corporation.

 

[SIGNATURE PAGE FOLLOWS]

 

    	8

    	 

    

  

IN WITNESS WHEREOF,
the parties have duly executed this Agreement, or caused this Agreement to be duly executed, as of the date first written above.

 

 

	FREDERICK'S OF HOLLYWOOD GROUP INC.
	 
	By: 	
	Name:	 
	Title:	 
	 	 
	INDEMNITEE:	 
	 	 
	 
	Name:

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