Document:

Exhibit
4.1

 

THIS
NOTE AND THE ORDINARY SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE
AND THE ORDINARY SHARES ISSUABLE HEREUNDER MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS NOTE OR ANY SHARES ISSUABLE HEREUNDER UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAW
OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO BORROWER (AS DEFINED BELOW) OR ITS TRANSFER AGENT THAT SUCH REGISTRATION IS
NOT REQUIRED.

 

CONVERTIBLE
PROMISSORY NOTE

 

	Effective
    Date: October 4, 2019	U.S.
    $2,120,000.00

 

FOR
VALUE RECEIVED, Naked Brand Group Limited, an Australia corporation (“Borrower”),
promises to pay to Iliad Research and Trading, L.P., a Utah limited partnership,
or its successors or assigns (“Lender”), $2,120,000.00 and any interest, fees, charges, and late fees accrued
hereunder on the date (the “Maturity Date”) that is twenty-four (24) months after the date first written above
(the “Effective Date”) in accordance with the terms set forth herein and to pay interest on the Outstanding
Balance at the rate of twenty percent (20%) per annum from the Effective Date until the same is paid in full. All interest calculations
hereunder shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day months, shall compound daily
and shall be payable in accordance with the terms of this Note. This Note is issued pursuant to that certain Securities Purchase
Agreement dated October 4, 2019, as the same may be amended from time to time, by and between Borrower and Lender (the “Purchase
Agreement”). Certain capitalized terms used herein are defined in Attachment 1 attached hereto and incorporated
herein by this reference.

 

This
Note carries an OID of $100,000.00. In addition, Borrower agrees to pay $20,000.00 to Lender to cover Lender’s legal fees,
accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and sale of this
Note (the “Transaction Expense Amount”), all of which amount is fully earned and included in the initial principal
balance of this Note. The purchase price for this Note and the Warrant (as defined in the Purchase Agreement) shall be $2,000,000.00
(the “Purchase Price”), computed as follows: $2,120,000.00 original principal balance, less the OID, less the
Transaction Expense Amount. The Purchase Price shall be payable by Lender by wire transfer of immediately available funds.

 

1.
Payment; Prepayment; Financing Completion Failure.

 

1.1.
Payment. All payments owing hereunder shall be in lawful money of the United States of America or Conversion Shares (as
defined below), as provided for herein, and delivered to Lender at the address or bank account furnished to Borrower for that
purpose. All payments shall be applied first to (a) costs of collection, if any, then to (b) fees and charges, if any, then to
(c) accrued and unpaid interest, and thereafter, to (d) principal.

 

1.2.
Prepayment. Notwithstanding the foregoing, Borrower shall have the right to prepay all or any portion of the Outstanding
Balance (less such portion of the Outstanding Balance for which Borrower has received a Conversion Notice (as defined below) from
Lender where the applicable Conversion Shares have not yet been delivered). If Borrower exercises its right to prepay this Note,
Borrower shall make payment to Lender of an amount in cash equal to 125% multiplied by the portion of the Outstanding Balance
Borrower elects to prepay.

 

    	 

    	 

    

 

1.3.
Financing Completion Failure. Upon the occurrence of a Financing Completion Failure, the Outstanding Balance shall automatically
be increased by ten percent (10%) of the then-current Outstanding Balance. For the avoidance of doubt, a Financing Completion
Failure shall not be considered an Event of Default (as defined below) hereunder.

 

2.
Security; Subordination. This Note is unsecured. This Note is subject in all respects to the Subordination Deed (as defined
in the Purchase Agreement).

 

3.
Lender Optional Conversion.

 

3.1.
Conversions. Lender has the right at any time after the earlier of (a) the date that is six (6) months from the Purchase
Price Date, and (b) the date the Registration Statement (as defined in the Purchase Agreement) becomes effective until the Outstanding
Balance has been paid in full, at its election, to convert (“Conversion”) all or any portion of the Outstanding
Balance into shares (“Conversion Shares”) of fully paid and non-assessable ordinary shares, no par value per
share (“Ordinary Shares”), of Borrower as per the following conversion formula: the number of Conversion Shares
equals the amount being converted (the “Conversion Amount”) divided by the Conversion Price (as defined below).
Conversion notices in the form attached hereto as Exhibit A (each, a “Conversion Notice”) may be effectively
delivered to Borrower by any method set forth in the “Notices” Section of the Purchase Agreement, and all Conversions
shall be cashless and not require further payment from Lender. Borrower shall deliver the Conversion Shares from any Conversion
to Lender in accordance with Section 9 below.

 

3.2.
Conversion Price. Subject to adjustment as set forth in this Note, the price at which Lender has the right to convert all
or any portion of the Outstanding Balance into Ordinary Shares is $0.05 per Ordinary Share (the “Conversion Price”).

 

4.
Defaults and Remedies.

 

4.1.
Defaults. The following are events of default under this Note (each, an “Event of Default”): (a) Borrower
fails to pay (i) the Outstanding Balance at the Maturity Date, (ii) any Redemption Amount when due and payable, or (iii) any other
principal, interest, fees, charges, or any other amount within five (5) days of when due and payable hereunder (for the avoidance
of doubt, the foregoing five (5) day cure period only applies to clause (iii)); (b) Borrower fails to deliver any Conversion Shares
within three (3) Trading Days of when due hereunder or otherwise fails to deliver any Conversion Shares in accordance with the
terms hereof; (c) a receiver, trustee or other similar official shall be appointed over Borrower or a material part of its assets
and such appointment shall remain uncontested for twenty (20) days or shall not be dismissed or discharged within sixty (60) days;
(d) Borrower becomes insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become
due, subject to applicable grace periods, if any; (e) Borrower makes a general assignment for the benefit of creditors; (f) Borrower
files a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); (g) an involuntary bankruptcy
proceeding is commenced or filed against Borrower and such proceeding shall remain uncontested for twenty (20) days or shall not
be dismissed or discharged within sixty (60) days; (h) Borrower or any pledgor, trustor, or guarantor of this Note defaults or
otherwise fails to observe or perform any material covenant, obligation, condition or agreement of Borrower or such pledgor, trustor,
or guarantor contained herein or in any other Transaction Document (as defined in the Purchase Agreement), other than those specifically
set forth in this Section 4.1 and Section 4 of the Purchase Agreement; (i) any representation, warranty or other statement made
or furnished by or on behalf of Borrower or any pledgor, trustor, or guarantor of this Note to Lender herein, in any Transaction
Document, or otherwise in connection with the issuance of this Note is false, incorrect, incomplete or misleading in any material
respect when made or furnished; (j) the occurrence of a Fundamental Transaction without Lender’s prior written consent;
(k) Borrower effectuates a reverse split of its Ordinary Shares without ten (10) Trading Days prior written notice to Lender;
(l) any money judgment, writ or similar process is entered or filed against Borrower or any subsidiary of Borrower or any of its
property or other assets for more than $1,000,000.00, and shall remain unvacated, unbonded or unstayed for a period of twenty
(20) calendar days unless otherwise consented to by Lender; (m) Borrower fails to be DWAC Eligible; (n) Borrower fails to observe
or perform any covenant set forth in Section 4(i) – (iv) of the Purchase Agreement; (o) Borrower fails to observe or perform
any covenant set forth in Section 4(v) or (vi) of the Purchase Agreement; or (p) Borrower, any affiliate of Borrower, or any pledgor,
trustor, or guarantor of this Note breaches any covenant or other term or condition contained in any Other Agreements. Notwithstanding
the foregoing, the occurrence of any of the events specified in Section 4.1(h) – (p) above shall not be considered an Event
of Default if cured within thirty (30) days of the occurrence of such event.

 

    	 	2	 

    	 

    

 

4.2.
Remedies. At any time and from time to time after Lender becomes aware of the occurrence of any Event of Default, Lender
may accelerate this Note by written notice to Borrower, with the Outstanding Balance becoming immediately due and payable in cash
at the Mandatory Default Amount. Notwithstanding the foregoing, at any time following the occurrence of any Event of Default,
Lender may, at its option, elect to increase the Outstanding Balance by applying the Default Effect (subject to the limitation
set forth below) via written notice to Borrower without accelerating the Outstanding Balance, in which event the Outstanding Balance
shall be increased as of the date of the occurrence of the applicable Event of Default pursuant to the Default Effect, but the
Outstanding Balance shall not be immediately due and payable unless so declared by Lender (for the avoidance of doubt, if Lender
elects to apply the Default Effect pursuant to this sentence, it shall reserve the right to declare the Outstanding Balance immediately
due and payable at any time while such Event of Default is continuing and no such election by Lender shall be deemed to be a waiver
of its right to declare the Outstanding Balance immediately due and payable as set forth herein while such Event of Default is
continuing unless otherwise agreed to by Lender in writing). Notwithstanding the foregoing, upon the occurrence of any Event of
Default described in clauses (c), (d), (e), (f) or (g) of Section 4.1, the Outstanding Balance as of the date of acceleration
shall become immediately and automatically due and payable in cash at the Mandatory Default Amount, without any written notice
required by Lender. At any time following the occurrence of any Event of Default, upon written notice given by Lender to Borrower,
interest shall accrue on the Outstanding Balance beginning on the date the applicable Event of Default occurred at an interest
rate equal to the lesser of twenty-two percent (22%) per annum or the maximum rate permitted under applicable law (“Default
Interest”). For the avoidance of doubt, Lender may continue making Conversions at any time following an Event of Default
until such time as the Outstanding Balance is paid in full. In connection with acceleration described herein, except as described
herein, Lender need not provide, and Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and
Lender may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and
all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Lender at any time
prior to payment hereunder and Lender shall have all rights as a holder of the Note until such time, if any, as Lender receives
full payment pursuant to this Section 4.2 or this note is converted in full pursuant to Section 3. No such rescission or annulment
shall affect any subsequent Event of Default or impair any right consequent thereon. Nothing herein shall limit Lender’s
right to pursue any other remedies available to it at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to Borrower’s failure to timely deliver Conversion Shares upon Conversion of the Note
as required pursuant to the terms hereof.

 

5.
Unconditional Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid, binding and enforceable
obligation of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any rights of offset
it now has or may have hereafter against Lender, its successors and assigns, and agrees to make the payments or Conversions called
for herein in accordance with the terms of this Note.

 

    	 	3	 

    	 

    

 

6.
Waiver. No waiver of any provision of this Note shall be effective unless it is in the form of a writing signed by the
party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other
provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing
waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in
writing.

 

7.
Adjustments.

 

7.1.
Adjustment of Conversion Price upon Subdivision or Combination of Ordinary Shares. Without limiting any provision hereof,
if Borrower at any time on or after the Effective Date subdivides (by any stock split, stock dividend, recapitalization or otherwise)
one or more classes of its outstanding Ordinary Shares into a greater number of shares, the Conversion Price in effect immediately
prior to such subdivision will be proportionately reduced. Without limiting any provision hereof, if Borrower at any time on or
after the Effective Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding Ordinary
Shares into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately
increased. Any adjustment pursuant to this Section 7 shall become effective immediately after the effective date of such subdivision
or combination.

 

7.2.
Reclassification, Reorganization and Consolidation; Fundamental Transaction. In case of any reclassification, capital reorganization,
or change in the capital stock of Borrower (other than as a result of a subdivision, combination, or stock dividend provided for
in Section 7.1 above), or in case a Fundamental Transaction is consummated, then Company shall make appropriate provision so that
Lender shall receive upon Conversion of this Note the kind and amount of shares of stock and/or other securities or property receivable
in connection with such reclassification, reorganization, or change, or Fundamental Transaction, by a holder of the same number
of Ordinary Shares as were receivable by Lender upon Conversion of this Note immediately prior to such reclassification, reorganization,
or change, or Fundamental Transaction. In any such case appropriate provisions shall be made with respect to the rights and interest
of Lender so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities
and property deliverable upon Conversion hereof.

 

8.
Borrower Redemptions. Beginning on the date that is six (6) months from the Purchase Price Date and at any time thereafter
until this Note is paid in full, Lender shall have the right to cause the Borrower to redeem any portion of the Note (the amount
of each exercise, the “Redemption Amount”) up the Maximum Monthly Redemption Amount in any given calendar month
by providing written notice (each, a “Redemption Notice”) delivered to Borrower by facsimile, email, mail,
overnight courier, or personal delivery. Upon receipt of any Redemption Notice, Borrower shall pay the applicable Redemption Amount
in cash to Lender within three (3) Trading Days of Borrower’s receipt of such Redemption Notice (the “Redemption
Amount Payment Date”). For the avoidance of doubt, in the event Borrower fails to pay any Redemption Amount to Lender
by the applicable Redemption Amount Payment Date for any reason, including, but not limited to, Borrower’s inability to
make such payment in cash as a result of its payment restrictions or other obligations under the Subordination Deed, such failure
to pay the Redemption Amount shall still be considered an Event of Default hereunder.

 

9.
Method of Conversion Share Delivery.

 

9.1.
On or before the close of business on the third (3rd) Trading Day following the date of delivery of a Conversion Notice
(the “Delivery Date”), Borrower shall, provided it is DWAC Eligible at such time, deliver or cause its transfer
agent to deliver the applicable Conversion Shares electronically via DWAC to the account designated by Lender in the applicable
Conversion Notice. If Borrower is not DWAC Eligible, it shall deliver to Lender or its broker (as designated in the Conversion
Notice), via reputable overnight courier, a certificate representing the number of Ordinary Shares equal to the number of Conversion
Shares to which Lender shall be entitled, registered in the name of Lender or its designee. For the avoidance of doubt, Borrower
has not met its obligation to deliver Conversion Shares by the Delivery Date unless Lender or its broker, as applicable, has actually
received the certificate representing the applicable Conversion Shares no later than the close of business on the relevant Delivery
Date pursuant to the terms set forth above.

 

    	 	4	 

    	 

    

 

9.2.
Notwithstanding anything to the contrary herein or in any other Transaction Document, in the event Borrower or its transfer agent
refuses to deliver any Conversion Shares without a restrictive securities legend to Lender on grounds that such issuance is in
violation of Rule 144 under the Securities Act of 1933, as amended (“Rule 144”), Borrower shall deliver or
cause its transfer agent to deliver the applicable Conversion Shares to Lender in certificated form with a restricted securities
legend, but otherwise in accordance with the provisions of this Section 9. In conjunction therewith, Borrower will also deliver
to Lender a written explanation from its counsel or its transfer agent’s counsel explaining why the issuance of the applicable
Conversion Shares via DWAC or otherwise without a restricted securities legend violates Rule 144. The Lender acknowledges that
the Conversion Shares shall bear a legend so long as the applicable holding period under Rule 144 has not been met or any other
conditions of Rule 144, including the requirement for current public information to be available, would apply to sale of the Conversion
Shares. For the avoidance of doubt, it shall not constitute an Event of Default to deliver Conversion Shares in accordance with
this Section 9.2.

 

10.
Conversion Delays. If Borrower fails to deliver Conversion Shares in accordance with the timeframe stated in Section 9,
Lender may at any time prior to receiving the applicable Conversion Shares rescind in whole or in part such Conversion, with a
corresponding increase to the Outstanding Balance (any returned amount will tack back to the Purchase Price Date for purposes
of determining the holding period under Rule 144). In addition, for each Conversion, in the event that Conversion Shares are not
delivered by the third (3rd) Trading Day (inclusive of the day of the Conversion), a late fee equal to 2% of the applicable
Conversion Share Value rounded to the nearest multiple of $100.00 but with a floor of $500.00 per day (but in any event the cumulative
amount of such late fees for each Conversion shall not exceed 100% of the applicable Conversion Share Value) will be assessed
for each day after the fifth (5th) Trading Day (inclusive of the day of the Conversion) until Conversion Share delivery
is made; and such late fee will be added to the Outstanding Balance (such fees, the “Conversion Delay Late Fees”)

 

11.
Restriction on Equity Sales. If at any time after the date that is six (6) months from the Purchase Price Date, Borrower
is unable to issue Ordinary Shares to Lender as result of any lock-up or other agreement or restriction prohibiting the issuance
of Ordinary Shares for a certain period of time (the “Lock-Up”), then, at Lender’s option, the Outstanding
Balance will be increased by three percent (3%) for each thirty (30) day period that Borrower is prohibited from issuing Ordinary
Shares (which increase shall be pro-rated for any partial period). For the avoidance of doubt, if Lender elects to increase the
Outstanding Balance as set forth in the previous sentence, Lender shall be deemed to have waived its right to call an Event of
Default for failure to deliver Conversion Shares as a result of the Lock-Up.

 

12.
Ownership Limitation. Notwithstanding anything to the contrary contained in this Note or the other Transaction Documents,
Borrower shall not effect any conversion of this Note to the extent that after giving effect to such conversion would cause Lender
(together with its affiliates) to beneficially own a number of shares exceeding 4.99% of the number of Ordinary Shares outstanding
on such date (including for such purpose the Ordinary Shares issuable upon such issuance) (the “Maximum Percentage”).
For purposes of this section, beneficial ownership and the percentage of beneficial ownership of Ordinary Shares will be determined
pursuant to Section 13(d) of the 1934 Act. Notwithstanding the forgoing, the term “4.99%” above shall be replaced
with “9.99%” at such time as the Market Capitalization is less than $10,000,000.00. Notwithstanding any other provision
contained herein, if the term “4.99%” is replaced with “9.99%” pursuant to the preceding sentence, such
increase to “9.99%” shall remain at 9.99% until increased or decreased by Lender as set forth below. By written notice
to Borrower, Lender may increase or decrease the Maximum Percentage, up to a maximum of 9.99%, but any such increase will not
be effective until the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable, unconditional
and non-waivable and shall apply to all affiliates and assigns of Lender.

 

    	 	5	 

    	 

    

 

13.
Transfer to Comply with the Securities Act. This Note and the Conversion Shares have not been registered under the Securities
Act of 1933, as amended (the “1933 Act”). Neither this Note nor the Conversion Shares may be sold, transferred,
pledged or hypothecated without (a) an effective registration statement under the 1933 Act relating to such security or (b) an
opinion of counsel reasonably satisfactory to Borrower that registration is not required under the 1933 Act; provided, however,
that the foregoing restrictions on transfer shall not apply to the transfer of the Note to an affiliate of Lender. Until such
time as registration has occurred under the 1933 Act, each certificate for this Note and any Conversion Shares shall contain a
legend, in form and substance satisfactory to counsel for Borrower, setting forth the restrictions on transfer contained in this
Section 13; provided, however, that Borrower acknowledges and agrees that any such legend shall be removed from all certificates
for DTC Eligible Ordinary Shares delivered hereunder, provided that the applicable holding period under Rule 144 has been met
and no other conditions of Rule 144, including the requirement for current public information to be available, would apply to
sale of the Conversion Shares. Subject to the foregoing, upon receipt of a duly executed assignment of this Note, Borrower shall
register the transferee thereon as the new holder on the books and records of Borrower and such transferee shall be deemed a “registered
holder” or “registered assign” for all purposes hereunder, and shall have all the rights of Lender under this
Note. Until this Note is transferred on the books of Borrower, Borrower may treat Lender as the absolute owner hereof for all
purposes, notwithstanding any notice to the contrary.

 

14.
Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to this Note, Lender has the
right to have any such opinion provided by its counsel, provided such counsel is reasonably acceptable to Borrower.

 

15.
Governing Law; Venue. This Note shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of Utah, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the Purchase
Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

16.
Arbitration of Disputes. By its issuance or acceptance of this Note, each party agrees to be bound by the Arbitration Provisions
(as defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement.

 

17.
Cancellation. After repayment or conversion of the entire Outstanding Balance, this Note shall be deemed paid in full,
shall automatically be deemed canceled, and shall not be reissued.

 

18.
Amendments. The prior written consent of both parties hereto shall be required for any change or amendment to this Note.

 

19.
Assignments. Borrower may not assign this Note without the prior written consent of Lender. This Note and any Ordinary
Shares issued upon conversion of this Note may be offered, sold, assigned or transferred by Lender without the consent of Borrower.

 

    	 	6	 

    	 

    

 

20.
Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be
given in accordance with the subsection of the Purchase Agreement titled “Notices.”

 

21.
Liquidated Damages. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or provisions
of this Note, Lender’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the
parties’ inability to predict future interest rates, future share prices, future trading volumes and other relevant factors.
Accordingly, Lender and Borrower agree that any fees, balance adjustments, Default Interest or other charges assessed under this
Note are not penalties but instead are intended by the parties to be, and shall be deemed, liquidated damages (under Lender’s
and Borrower’s expectations that any such liquidated damages will tack back to the Purchase Price Date for purposes of determining
the holding period under Rule 144).

 

22.
Severability. If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve
the objective of Borrower and Lender to the fullest extent permitted by law and the balance of this Note shall remain in full
force and effect.

 

[Remainder
of page intentionally left blank; signature page follows]

 

    	 	7	 

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be duly executed as of the Effective Date.

 

	 	BORROWER:
	 	 
	 	Naked
    Brand Group Limited
	 	 	 
	 	By:
    	/s/
    Justin Davis-Rice
	 	Name:
    	Justin
    Davis-Rice
	 	Title:
    	Director

 

	ACKNOWLEDGED,
    ACCEPTED AND AGREED:	 
	 	 
	LENDER:	 
	 	 
	Iliad
    Research and Trading, L.P.	 
	 	 	 
	By:
    	Iliad
    Management, LLC, its General Partner	 
	 	 	 
	By:
    	Fife
    Trading, Inc., its Manager	 
	 	 	 
	By:
    	/s/
    John M. Fife	 
	 	John
M. Fife, President	 

 

[Signature
Page to Convertible Promissory Note]

 

    	 

    	 

    

 

ATTACHMENT
1

DEFINITIONS

 

For
purposes of this Note, the following terms shall have the following meanings:

 

A1.
“Closing Trade Price” means the last closing trade price for the Ordinary Shares on its principal market, as
reported by Bloomberg, or, if its principal market begins to operate on an extended hours basis and does not designate the closing
bid price or the closing trade price (as the case may be) then the last trade price, respectively, of the Ordinary Shares prior
to 4:00:00 p.m., New York time, as reported by Bloomberg, or if the foregoing does not apply, the last closing trade price of
the Ordinary Shares in the over-the-counter market on the electronic bulletin board for the Ordinary Shares as reported by Bloomberg,
or, if no closing trade price is reported for the Ordinary Shares by Bloomberg, the average of the bid and ask prices of any market
makers for the Ordinary Shares as reported by OTC Markets Group, Inc., and any successor thereto. If the Closing Trade Price cannot
be calculated for the Ordinary Shares on a particular date on any of the foregoing bases, the Closing Trade Price of the Ordinary
Shares on such date shall be the fair market value as mutually determined by Lender and Borrower. All such determinations shall
be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

A2.
“Conversion Share Value” means the product of the number of Conversion Shares deliverable pursuant to any Conversion
Notice multiplied by the Closing Trade Price of the Ordinary Shares on the Delivery Date for such Conversion.

 

A3.
“Default Effect” means multiplying the Outstanding Balance as of the date the applicable Event of Default occurred
by (a) fifteen percent (15%) for each occurrence of any Major Default, or (b) five percent (5%) for each occurrence of any Minor
Default, and then adding the resulting product to the Outstanding Balance as of the date the applicable Event of Default occurred,
with the sum of the foregoing then becoming the Outstanding Balance under this Note as of the date the applicable Event of Default
occurred; provided that the Default Effect may only be applied two (2) times hereunder with respect to Major Defaults and three
(3) times hereunder with respect to Minor Defaults; provided, however, that the percentage increases to the Outstanding Balance
from applying the Default Effect shall not in any event exceed twenty-five percent (25%) in the aggregate; provided further that
the Default Effect shall not apply to any Event of Default pursuant to Section 4.1(b) hereof.

 

A4.
“DTC” means the Depository Trust Company or any successor thereto.

 

A5.
“DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer program.

 

A6.
“DWAC” means the DTC’s Deposit/Withdrawal at Custodian system.

 

A7.
“DWAC Eligible” means that (a) Borrower’s Ordinary Shares is eligible at DTC for full services pursuant
to DTC’s operational arrangements, including without limitation transfer through DTC’s DWAC system; (b) Borrower has
been approved (without revocation) by DTC’s underwriting department; (c) Borrower’s transfer agent is approved as
an agent in the DTC/FAST Program; (d) the Conversion Shares are otherwise eligible for delivery via DWAC; and (e) Borrower’s
transfer agent does not have a policy prohibiting or limiting delivery of the Conversion Shares via DWAC.

 

A8.
“Financing Completion Failure” means the failure to timely comply with the covenant found in Section 4(vii)
of the Purchase Agreement.

 

    	Attachment 1 to Convertible Promissory Note, Page 1

    	 

    

 

A9.
“Fundamental Transaction” means that (a) (i) Borrower or any of its subsidiaries shall, directly or indirectly,
in one or more related transactions, consolidate or merge with or into (whether or not Borrower or any of its subsidiaries is
the surviving corporation) any other person or entity, unless the holders of the voting securities of Borrower prior to such transaction
own 50% or more of the outstanding voting securities of the surviving person or entity, or (ii) Borrower or any of its subsidiaries
shall, directly or indirectly, in one or more related transactions, sell, lease, license, assign, transfer, convey or otherwise
dispose of all or substantially all of its respective properties or assets to any other person or entity, or (iii) Borrower or
any of its subsidiaries shall, directly or indirectly, in one or more related transactions, allow any other person or entity to
make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of voting
stock of Borrower (not including any shares of voting stock of Borrower held by the person or persons making or party to, or associated
or affiliated with the persons or entities making or party to, such purchase, tender or exchange offer), or (iv) Borrower or any
of its subsidiaries shall, directly or indirectly, in one or more related transactions, consummate a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with any other person or entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting
stock of Borrower (not including any shares of voting stock of Borrower held by the other persons or entities making or party
to, or associated or affiliated with the other persons or entities making or party to, such stock or share purchase agreement
or other business combination), or (v) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related
transactions, reorganize, recapitalize or reclassify the Ordinary Shares (which, for the avoidance of doubt, shall not include
a stock dividend, stock split, stock combination or similar transaction), or (b) any “person” or “group”
(as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder)
is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of
50% of the aggregate ordinary voting power represented by issued and outstanding voting stock of Borrower.

 

A10.
“Major Default” means any Event of Default occurring under Sections 4.1(a) or 4.1(n).

 

A11.
“Mandatory Default Amount” means the Outstanding Balance following the application of the Default Effect.

 

A12.
“Market Capitalization” means a number equal to (a) the average VWAP of the Ordinary Shares for the immediately
preceding fifteen (15) Trading Days, multiplied by (b) the aggregate number of outstanding Ordinary Shares as reported on Borrower’s
most recently filed Form 10-Q or Form 10-K.

 

A13.
“Maximum Monthly Redemption Amount” means $400,000.00.

 

A14.
“Minor Default” means any Event of Default that is not a Major Default.

 

A15.
“OID” means an original issue discount.

 

A16.
“Other Agreements” means, collectively, (a) all existing and future agreements and instruments between, among
or by Borrower (or an affiliate), on the one hand, and Lender (or an affiliate), on the other hand, and (b) any financing agreement
or a material agreement that affects Borrower’s ongoing business operations.

 

A17.
“Outstanding Balance” means as of any date of determination, the Purchase Price, as reduced or increased, as
the case may be, pursuant to the terms hereof for payment, Conversion, offset, or otherwise, plus the OID, the Transaction Expense
Amount, accrued but unpaid interest, collection and enforcements costs (including attorneys’ fees) incurred by Lender, transfer,
stamp, issuance and similar taxes and fees related to Conversions, and any other fees or charges (including without limitation
Conversion Delay Late Fees) incurred under this Note.

 

A18.
“Purchase Price Date” means the date the Purchase Price is delivered by Lender to Borrower.

 

A19.
“Trading Day” means any day on which the Capital Market of the Nasdaq Stock Market (or such other principal
market for the Ordinary Shares) is open for trading.

 

A20.
“VWAP” means the volume weighted average price of the Ordinary Shares on the principal market for a particular
Trading Day or set of Trading Days, as the case may be, as reported by Bloomberg.

 

[Remainder
of page intentionally left blank]

 

    	Attachment 1 to Convertible Promissory Note, Page 2

    	 

    

 

EXHIBIT
A

 

Iliad
Research and Trading, L.P.

303
East Wacker Drive, Suite 1040

Chicago,
Illinois 60601

 

	Naked
    Brand Group Limited	Date:
    __________________
	Attn:
        Anna Johnson

        c/o
        Bendon Limited

        Building
        7C, Huntley Street

        Alexandria

        NSW
        2015, Australia
	 

 

CONVERSION
NOTICE

 

The
above-captioned Lender hereby gives notice to Naked Brand Group Limited, an Australia corporation (the “Borrower”),
pursuant to that certain Convertible Promissory Note made by Borrower in favor of Lender on October 4, 2019 (the “Note”),
that Lender elects to convert the portion of the Note balance set forth below into fully paid and non-assessable Ordinary Shares
of Borrower as of the date of conversion specified below. Said conversion shall be based on the Conversion Price set forth below.
In the event of a conflict between this Conversion Notice and the Note, the Note shall govern, or, in the alternative, at the
election of Lender in its sole discretion, Lender may provide a new form of Conversion Notice to conform to the Note. Capitalized
terms used in this notice without definition shall have the meanings given to them in the Note.

 

A.
   Date of Conversion: ____________

B.
   Conversion #: ____________

C.
   Conversion Amount: ____________

D.
   Conversion Price: _______________

E.
   Conversion Shares: _______________ (C divided by D)

F.
   Remaining Outstanding Balance of Note: ____________*

 

*
Subject to adjustments for corrections, defaults, interest and other adjustments permitted by the Transaction Documents (as defined
in the Purchase Agreement), the terms of which shall control in the event of any dispute between the terms of this Conversion
Notice and such Transaction Documents.

 

Please
transfer the Conversion Shares electronically (via DWAC) to the following account:

 

	Broker:
    __________________________________	 	Address:
    	_____________________________________
	DTC#:
    __________________________________	 	 	_____________________________________
	Account
    #: ______________________________	 	 	_____________________________________
	Account
    Name: __________________________	 	 	 

 

To
the extent the Conversion Shares are not able to be delivered to Lender electronically via the DWAC system, deliver all such certificated
shares to Lender via reputable overnight courier after receipt of this Conversion Notice (by facsimile transmission or otherwise)
to:

 

_____________________________________

_____________________________________

_____________________________________

 

[Signature
Page Follows]

 

    	Exhibit A to Convertible Promissory Note, Page 1

    	 

    

 

Sincerely,

 

Lender:

 

	Iliad
    Research and Trading, L.P.	 
	 	 
	By:
    	Iliad
    Management, LLC, its General Partner	 
	 	 	 
	By:
    	Fife
    Trading, Inc., its Manager	 
	 	 	 
	By:	 	 
	 	John
    M. Fife, President	 

 

	Affirmed:	 
	 	 
	Naked
    Brand Group Limited	 
	 	 	 
	By:
    	     	 
	Name:	 	 
	Title:
    	 	 

 

    	Exhibit A to Convertible Promissory Note, Page 2Exhibit
4.2

 

THIS
WARRANT AND THE ORDINARY SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS
WARRANT AND THE ORDINARY SHARES ISSUABLE HEREUNDER MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT OR ANY SHARES ISSUABLE HEREUNDER UNDER SUCH ACT AND ANY APPLICABLE STATE
SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO COMPANY (AS DEFINED BELOW) OR ITS TRANSFER AGENT THAT SUCH
REGISTRATION IS NOT REQUIRED.

 

Naked
Brand Group Limited

 

WARRANT
TO PURCHASE ORDINARY SHARES

 

1.
Issuance. For good and valuable consideration as set forth in the Purchase Agreement (as defined below), including without
limitation the Purchase Price (as defined in the Purchase Agreement), the receipt and sufficiency of which are hereby acknowledged
by Naked Brand Group Limited, an Australia corporation (“Company”);
Iliad Research and Trading, L.P., a Utah limited partnership, its successors and/or
registered assigns (“Investor”), is hereby granted the right to purchase at any time on or after the Issue
Date (as defined below) until the date which is the last calendar day of the month in which the second anniversary of the Purchase
Price Date (as defined in the Note (as defined in Attachment 1)) occurs (the “Expiration Date”), a number
of fully paid and non-assessable ordinary shares, no par value per share (the “Ordinary Shares”), equal to
the number of Conversion Shares (as defined in the Note) issued to Investor under the Note (as defined in the Note) as such number
may be adjusted from time to time pursuant to the terms and conditions of this Warrant to Purchase Ordinary Shares (this “Warrant”).

 

This
Warrant is being issued pursuant to the terms of that certain Securities Purchase Agreement dated October 4, 2019, to which Company
and Investor are parties (as the same may be amended from time to time, the “Purchase Agreement”). Certain
capitalized terms used herein are defined in Attachment 1 attached hereto and incorporated herein by this reference. Moreover,
to the extent any defined terms herein are defined in any other Transaction Document (as so noted herein), such defined term shall
remain applicable in this Warrant even if the other Transaction Document has been released, satisfied, or is otherwise cancelled.
This Warrant was issued to Investor on October 4, 2019 (the “Issue Date”).

 

2.
Exercise of Warrant.

 

2.1.
General.

 

(a)
This Warrant is exercisable in whole or in part at any time and from time to time commencing on the Purchase Price Date and ending
on the Expiration Date. Such exercise shall be effectuated by submitting to Company (either by delivery to Company or by email
or facsimile transmission) a completed and signed Notice of Exercise substantially in the form attached to this Warrant as Exhibit
A (the “Notice of Exercise”). The date a Notice of Exercise is either faxed, emailed or delivered to Company
shall be the “Exercise Date,” provided that, if such exercise represents the full exercise of the outstanding
balance of this Warrant, Investor shall tender this Warrant to Company within five (5) Trading Days thereafter, but only if the
Warrant Shares to be delivered pursuant to the Notice of Exercise have been delivered to Investor as of such date. The Notice
of Exercise shall be executed by Investor and shall indicate (i) the number of Warrant Shares to be issued pursuant to such exercise,
and (ii) if applicable (as provided below), whether the exercise is a cashless exercise.

 

    	 	1	 

    	 

    

 

2.2.
Exercise Price.

 

(a)
Notwithstanding any other provision contained herein or in any other Transaction Document to the contrary, if at any time after
the six month anniversary of the Issue Date and prior to the Expiration Date there is no current and effective registration statement
available for the resale by Investor of the Warrant Shares, Investor may elect a “cashless” exercise of this Warrant
for any Warrant Shares, in which event the Company shall issue to Investor a number of Warrant Shares computed using the following
formula:

 

X
= Y (A-B)

A

 

	 	Where	X
    =	the
    number of Warrant Shares to be issued to Investor.
	 	 	 	 
	 	 	Y
    = 	the
    number of Warrant Shares that the Investor elects to purchase under this Warrant (at the date of such calculation).
	 	 	 	 
	 	 	A
    =	the
    Closing Trade Price (on the date two Trading Days prior to the Exercise Date).
	 	 	 	 
	 	 	B
    =	Exercise
    Price (as adjusted to the date of such calculation).

 

(b)
If the Notice of Exercise form elects a “cash” exercise, the Exercise Price per Ordinary Shares for the Warrant Shares
shall be payable, at the election of Investor, in cash or by certified or official bank check or by wire transfer in accordance
with instructions provided by Company at the request of Investor.

 

(c)
Upon the appropriate payment to Company, if any, of the Exercise Price for the Warrant Shares, Company shall promptly, but in
no case later than the date that is three (3) Trading Days following the date the Exercise Price is paid to Company (or with respect
to a “cashless exercise,” the date that is five (5) Trading Days following the Exercise Date) (the “Delivery
Date”), deliver or cause Company’s Transfer Agent to deliver the applicable Warrant Shares electronically via
the DWAC system to the account designated by Investor on the Notice of Exercise. If for any reason Company is not able to so deliver
the Warrant Shares via the DWAC system, notwithstanding its best efforts to do so, such shall constitute a breach of this Warrant,
and Company shall instead, on or before the applicable date set forth above in this subsection, issue and deliver to Investor
or its broker (as designated in the Notice of Exercise), via reputable overnight courier, a certificate, registered in the name
of Investor or its designee, representing the applicable number of Warrant Shares; provided that, for the avoidance of doubt,
it shall not constitute a breach to deliver Warrant Shares in accordance with Section 2.2(d). For the avoidance of doubt, Company
has not met its obligation to deliver Warrant Shares within the required timeframe set forth above unless Investor or its broker,
as applicable, has actually received the Warrant Shares (whether electronically or in certificated form) no later than the close
of business on the latest possible delivery date pursuant to the terms set forth above.

 

    	 	2	 

    	 

    

 

(d)
Notwithstanding anything to the contrary herein or in any other Transaction Document, in the event Company or its Transfer Agent
refuses to deliver any Warrant Shares to Investor on grounds that such issuance is in violation of Rule 144 under the 1933 Act
(as defined below) (“Rule 144”), Company shall deliver or cause its Transfer Agent to deliver the applicable
Warrant Shares to Investor in certificated form with a restricted securities legend, but otherwise in accordance with the provisions
of Section 2.2(c). In conjunction therewith, Company will also deliver to Investor a written opinion from its counsel or its Transfer
Agent’s counsel opining as to why the issuance of the applicable Warrant Shares via DWAC or otherwise without a restricted
securities legend violates Rule 144. Investor acknowledges that the Warrant Shares shall bear a legend so long as the applicable
holding period under Rule 144 has not been met or any other conditions of Rule 144, including the requirement for current public
information to be available, would apply to sale of the Warrant Shares.

 

(e)
If Warrant Shares are delivered later than as required under subsection (d) immediately above, Company agrees to pay, in addition
to all other remedies available to Investor in the Transaction Documents, a late charge equal to the greater of (i) $500.00 and
(ii) 1% of the product of the number of shares of Ordinary Shares not issued to Investor on a timely basis and to which Investor
is entitled multiplied by the Closing Trade Price of the Ordinary Shares on the Trading Day immediately preceding the last possible
date which Company could have issued such Ordinary Shares to Investor without violating this Warrant, rounded to the nearest multiple
of $100.00 (such resulting amount, the “Warrant Share Value”) (but in any event the cumulative amount of such
late fees for each exercise shall not exceed 50% of the Warrant Share Value), per Trading Day until such Warrant Shares are delivered
(the “Late Fees”). Company acknowledges and agrees that the failure to timely deliver Warrant Shares hereunder
is a material breach of this Warrant and that the Late Fees are properly charged as liquidated damages to compensate Investor
for such breach. Company shall pay any Late Fees incurred under this subsection in immediately available funds upon demand; provided,
however, that, so long as the Note is outstanding, at the option of Investor, such amount owed may be added to the principal
amount of the Note. Furthermore, in the event that Company fails for any reason to effect delivery of the Warrant Shares as required
under subsection (d) immediately above, Investor may revoke all or part of the relevant Warrant exercise by delivery of a notice
to such effect to Company, whereupon Company and Investor shall each be restored to their respective positions immediately prior
to the exercise of the relevant portion of this Warrant, except that the Late Fees described above shall be payable through the
date notice of revocation or rescission is given to Company.

 

(f)
Investor shall be deemed to be the holder of the Warrant Shares issuable to it in accordance with the provisions of this Section
2.1 on the Exercise Date.

 

2.3.
Ownership Limitation. Notwithstanding anything to the contrary contained in this Warrant or the other Transaction Documents,
Investor shall not effect any exercise of this Warrant to the extent that giving effect to such exercise would cause Investor
(together with its affiliates) to own a number of shares exceeding 4.99% of the number of Ordinary Shares outstanding on such
date (including for such purpose the Ordinary Shares issuable upon such issuance) (the “Maximum Percentage”).
Notwithstanding the foregoing, the term “4.99%” above shall be replaced with “9.99%” at such time as the
Market Capitalization is less than $10,000,000.00. Notwithstanding any other provision contained herein, if the term “4.99%”
is replaced with “9.99%” pursuant to the preceding sentence, such change to “9.99%” shall be permanent.
By written notice to Company, Investor may increase or decrease the Maximum Percentage, up to a maximum of 9.99%, but any such
waiver will not be effective until the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable,
unconditional and non-waivable and shall apply to all affiliates and assigns of Investor.

 

    	 	3	 

    	 

    

 

3.
Exchange Option. Within in thirty (30) days of the Purchase Price Date, Investor may return this Warrant to Company for
cancellation in exchange for a five percent (5%) increase to the Outstanding Balance of the Note.

 

4.
Mutilation or Loss of Warrant. Upon receipt by Company of evidence satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and (in the case of loss, theft or destruction) receipt of reasonably satisfactory indemnification,
and (in the case of mutilation) upon surrender and cancellation of this Warrant, Company will execute and deliver to Investor
a new Warrant of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall thereupon become void.

 

5.
Rights of Investor. Investor shall not, by virtue of this Warrant alone, be entitled to any rights of a stockholder in
Company, either at law or in equity, and the rights of Investor with respect to or arising under this Warrant are limited to those
expressed in this Warrant and are not enforceable against Company except to the extent set forth herein.

 

6.
Adjustments.

 

6.1.
Capital Adjustments. If Company shall at any time prior to the expiration of this Warrant subdivide the Ordinary Shares,
by split-up or stock split, or otherwise, or combine its Ordinary Shares, or issue additional shares of its Ordinary Shares as
a dividend, the number of Warrant Shares issuable upon the exercise of this Warrant shall forthwith be automatically increased
proportionately in the case of a subdivision, split or stock dividend, or proportionately decreased in the case of a combination.
Appropriate adjustments shall also be made to the Exercise Price and other applicable amounts, but the aggregate purchase price
payable for the total number of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment
under this Section 6.1 shall become effective automatically at the close of business on the date the subdivision or combination
becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of
such dividend.

 

6.2.
Reclassification, Reorganization and Consolidation; Fundamental Transaction. In case of any reclassification, capital reorganization,
or change in the capital stock of Company (other than as a result of a subdivision, combination, or stock dividend provided for
in Section 6.1 above), or in case a Fundamental Transaction (as defined in the Note) is consummated, then Company shall make appropriate
provision so that Investor shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price
equal to that payable upon the exercise of this Warrant, the kind and amount of shares of stock and/or other securities or property
receivable in connection with such reclassification, reorganization, or change, or Fundamental Transaction, by a holder of the
same number of Ordinary Shares as were purchasable by Investor immediately prior to such reclassification, reorganization, or
change, or Fundamental Transaction. In any such case appropriate provisions shall be made with respect to the rights and interest
of Investor so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities
and property deliverable upon exercise hereof, and appropriate adjustments shall be made to the purchase price per Warrant Share
payable hereunder, provided the aggregate purchase price shall remain the same.

 

    	 	4	 

    	 

    

 

7.
Certificate as to Adjustments. In each case of any adjustment or readjustment in the number or kind of shares issuable
on the exercise of this Warrant, or in the Exercise Price, pursuant to the terms hereof, Company at its expense will promptly
cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance with
the terms of this Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based, including a statement of (a) the number of Ordinary Shares outstanding or
deemed to be outstanding, and (b) the Exercise Price and the number of Ordinary Shares or other shares of stock or other securities
or property to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. Nothing in this Section 7 shall be deemed to limit any other provision contained
herein.

 

8.
Transfer to Comply with the Securities Act. This Warrant and the Warrant Shares have not been registered under the Securities
Act of 1933, as amended (the “1933 Act”). Neither this Warrant nor the Warrant Shares may be sold, transferred,
pledged or hypothecated without (a) an effective registration statement under the 1933 Act relating to such security or (b) an
opinion of counsel reasonably satisfactory to Company that registration is not required under the 1933 Act; provided, however,
that the foregoing restrictions on transfer shall not apply to the transfer of the Warrant to an affiliate of Investor. Until
such time as registration has occurred under the 1933 Act, each certificate for this Warrant and any Warrant Shares shall contain
a legend, in form and substance satisfactory to counsel for Company, setting forth the restrictions on transfer contained in this
Section 8; provided, however, that Company acknowledges and agrees that any such legend shall be removed from all certificates
for DTC Eligible Ordinary Shares delivered hereunder, provided that the applicable holding period under Rule 144 has been met
and no other conditions of Rule 144, including the requirement for current public information to be available, would apply to
sale of the Warrant Shares. Subject to the foregoing, upon receipt of a duly executed assignment of this Warrant, Company shall
register the transferee thereon as the new holder on the books and records of Company and such transferee shall be deemed a “registered
holder” or “registered assign” for all purposes hereunder, and shall have all the rights of Investor under this
Warrant. Until this Warrant is transferred on the books of Company, Company may treat Investor as the absolute owner hereof for
all purposes, notwithstanding any notice to the contrary.

 

9.
Notices. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled “Notices”
in the Purchase Agreement, the terms of which are incorporated herein by reference.

 

10.
Supplements and Amendments; Whole Agreement. This Warrant may be amended or supplemented only by an instrument in writing
signed by the parties hereto. This Warrant, together with the Purchase Agreement, contains the full understanding of the parties
hereto with respect to the subject matter hereof and thereof and there are no representations, warranties, agreements or understandings
with respect to the subject matter hereof and thereof other than as expressly contained herein and therein.

 

11.
Purchase Agreement; Arbitration of Disputes; Calculation Disputes. This Warrant is subject to the terms, conditions and
general provisions of the Purchase Agreement, including without limitation the Arbitration Provisions (as defined in the Purchase
Agreement) set forth as an exhibit to the Purchase Agreement. In addition, notwithstanding the Arbitration Provisions, in the
case of a dispute as to any Calculation (as defined in the Purchase Agreement), such dispute will be resolved in the manner set
forth in the Purchase Agreement.

 

12.
Governing Law; Venue. This Warrant shall be construed and enforced in accordance with, and all questions concerning the
construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of
Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set
forth in the Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

    	 	5	 

    	 

    

 

13.
Waiver of Jury Trial. COMPANY IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS WARRANT OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY.
THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE
OR REGULATION. FURTHER, COMPANY ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING ITS RIGHT TO DEMAND TRIAL BY JURY.

 

14.
Remedies. The remedies at law of Investor under this Warrant in the event of any default or threatened default by Company
in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and, without limiting
any other remedies available to Investor in the Transaction Documents, at law or equity, to the fullest extent permitted by law,
such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction
against a violation of any of the terms hereof or otherwise without the obligation to post a bond.

 

15.
Liquidated Damages. Company and Investor agree that in the event Company fails to comply with any of the terms or provisions
of this Warrant, Investor’s damages would be uncertain and difficult (if not impossible) to accurately estimate because
of the parties’ inability to predict future interest rates, future share prices, future trading volumes and other relevant
factors. Accordingly, Investor and Company agree that any fees or other charges assessed under this Warrant are not penalties
but instead are intended by the parties to be, and shall be deemed, liquidated damages (under Investor’s and Company’s
expectations that any such liquidated damages will tack back to the Issue Date for purposes of determining the holding period
under Rule 144.

 

16.
Counterparts. This Warrant may be executed in any number of counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. Signatures delivered
via facsimile or email shall be considered original signatures for all purposes hereof.

 

17.
Attorneys’ Fees. In the event of any arbitration, litigation or dispute arising from this Warrant, the parties agree
that the party who is awarded the most money (which, for the avoidance of doubt, shall be determined without regard to any statutory
fines, penalties, fees, or other charges awarded to any party) shall be deemed the prevailing party for all purposes and shall
therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid by said prevailing
party in connection with arbitration or litigation without reduction or apportionment based upon the individual claims or defenses
giving rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to
award fees and expenses for frivolous or bad faith pleading.

 

18.
Severability. Whenever possible, each provision of this Warrant shall be interpreted in such a manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be invalid or unenforceable in any jurisdiction, such
provision shall be modified to achieve the objective of the parties to the fullest extent permitted and such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Warrant or the validity or enforceability of this Warrant
in any other jurisdiction.

 

19.
Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Warrant.

 

20.
Descriptive Headings. Descriptive headings of the sections of this Warrant are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions hereof.

 

[Remainder
of page intentionally left blank; signature page follows]

 

    	 	6	 

    	 

    

 

IN
WITNESS WHEREOF, Company has caused this Warrant to be duly executed by an officer thereunto duly authorized as of the Issue Date.

 

	 	COMPANY:
	 	 	 
	 	Naked
    Brand Group Limited
	 	 	 
	 	By:	/s/
    Justin Davis-Rice 
	 	Printed
    Name:	Justin
    Davis-Rice 
	 	Title:	Director
    

 

[Signature Page to Warrant]

 

    	 

    	 

    

 

ATTACHMENT
1

DEFINITIONS

 

For
purposes of this Warrant, the following terms shall have the following meanings:

 

A1.
“Bloomberg” means Bloomberg L.P. (or if that service is not then reporting the relevant information regarding
the Ordinary Shares, a comparable reporting service of national reputation selected by Investor and reasonably satisfactory to
Company).

 

A2.
“Closing Trade Price” means the last closing trade price for the Ordinary Shares on its principal market, as
reported by Bloomberg, or, if its principal market begins to operate on an extended hours basis and does not designate the closing
bid price or the closing trade price (as the case may be) then the last trade price, respectively, of the Ordinary Shares prior
to 4:00:00 p.m., New York time, as reported by Bloomberg, or if the foregoing does not apply, the last closing trade price of
the Ordinary Shares in the over-the-counter market on the electronic bulletin board for the Ordinary Shares as reported by Bloomberg,
or, if no closing trade price is reported for the Ordinary Shares by Bloomberg, the average of the bid and ask prices of any market
makers for the Ordinary Shares as reported by OTC Markets Group, Inc., and any successor thereto. If the Closing Trade Price cannot
be calculated for the Ordinary Shares on a particular date on any of the foregoing bases, the Closing Trade Price of the Ordinary
Shares on such date shall be the fair market value as mutually determined by Investor and Company. All such determinations shall
be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

A3.
“DTC” means the Depository Trust Company or any successor thereto.

 

A4.
“DTC Eligible” means, with respect to the Ordinary Shares, that such Ordinary Shares is eligible to be deposited
in certificate form at the DTC, cleared and converted into electronic shares by the DTC and held in the name of the clearing firm
servicing Investor’s brokerage firm for the benefit of Investor.

 

A5.
“DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer program.

 

A6.
“DWAC” means the DTC’s Deposit/Withdrawal at Custodian system.

 

A7.
“DWAC Eligible” means that (a) Company’s Ordinary Shares is eligible at DTC for full services pursuant
to DTC’s operational arrangements, including without limitation transfer through DTC’s DWAC system, (b) Company has
been approved (without revocation) by the DTC’s underwriting department, (c) Company’s transfer agent is approved
as an agent in the DTC/FAST Program, (d) the Warrant Shares are otherwise eligible for delivery via DWAC; (e) Company has previously
delivered all Warrant Shares to Investor via DWAC; and (f) Company’s transfer agent does not have a policy prohibiting or
limiting delivery of the Warrant Shares via DWAC.

 

A8.
“Exercise Price” means $0.05 per Ordinary Share, as the same may be adjusted from time to time pursuant to
the terms and conditions of this Warrant.

 

A9.
“Market Capitalization” means the product equal to (a) the average VWAP of the Ordinary Shares for the immediately
preceding fifteen (15) Trading Days, multiplied by (b) the aggregate number of outstanding Ordinary Shares as reported on Company’s
most recently filed Form 10-Q or Form 10-K.

 

A10.
“Note” means that certain Convertible Promissory Note issued by Company to Investor pursuant to the Purchase
Agreement, as the same may be amended from time to time, and including any promissory note(s) that replace or are exchanged for
such referenced promissory note.

 

A11.
“Trading Day” means any day the New York Stock Exchange is open for trading.

 

A12.
“Transaction Documents” means the Purchase Agreement, the Note, this Warrant, and all other documents, certificates,
instruments and agreements entered into or delivered in conjunction therewith, as the same may be amended from time to time.

 

A13.
“VWAP” means the volume-weighted average price of the Ordinary Shares on the principal market for a particular
Trading Day or set of Trading Days, as the case may be, as reported by Bloomberg.

 

    	[Attachment 1 to Warrant, Page 1]

    	 

    

 

EXHIBIT
A

 

NOTICE
OF EXERCISE OF WARRANT

 

	TO:	Naked
    Brand Group Limited
	 	ATTN:
    _______________
	 	VIA
    FAX TO: ( )______________ EMAIL: ______________

 

The
undersigned hereby irrevocably elects to exercise the right, represented by Warrant to Purchase Ordinary Shares dated as of November
__, 2017 (the “Warrant”), to purchase shares of the ordinary shares, no par value (“Ordinary Shares”),
of Naked Brand Group Limited, and tenders herewith payment in accordance with Section 2 of the Warrant, as follows:

 

 

	_______	 	CASH: $__________________________ = (Exercise
    Price x Warrant Shares)
	 	 	 
	_______	 	Payment is being made by:
	 	 	__________ enclosed
    check
	 	 	__________ wire
    transfer
	 	 	__________ other
	 	 	 
	_______	 	CASHLESS EXERCISE:
	 	 	 
	 	 	Net number of Warrant
    Shares to be issued to Investor: ______*

 

*
X = Y (A-B)

A

 

	 	Where	X
    =	the
    number of Warrant Shares to be issued to Investor.
	 	 	 	 
	 	 	Y
    =	the
    number of Warrant Shares that the Investor elects to purchase under this Warrant (at the date of such calculation).
	 	 	 	 
	 	 	A
    =	the
    Closing Price (on the date two Trading Days prior to the Exercise Date).
	 	 	 	 
	 	 	B
    =	Exercise
    Price (as adjusted to the date of such calculation).

 

The
Lender hereby certifies that the representations and warranties set forth in Section 2 of the Purchase Agreement are true and
correct as of the date hereof. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them
in the Warrant.

 

It
is the intention of Investor to comply with the provisions of Section 2.2 of the Warrant regarding certain limits on Investor’s
right to receive shares thereunder. Investor believes this exercise complies with the provisions of such Section 2.2. Nonetheless,
to the extent that, pursuant to the exercise effected hereby, Investor would receive more Ordinary Shares than permitted under
Section 2.2, Company shall not be obligated and shall not issue to Investor such excess shares until such time, if ever, that
Investor could receive such excess shares without violating, and in full compliance with, Section 2.2 of the Warrant.

 

As
contemplated by the Warrant, this Notice of Exercise is being sent by email or by facsimile to the fax number and officer indicated
above.

 

    	Exhibit A to Warrant, Page 1

    	 

    

 

If
this Notice of Exercise represents the full exercise of the outstanding balance of the Warrant, Investor will surrender (or cause
to be surrendered) the Warrant to Company at the address indicated above by express courier within five (5) Trading Days after
the Warrant Shares to be delivered pursuant to this Notice of Exercise have been delivered to Investor.

 

To
the extent the Warrant Shares are not able to be delivered to Investor via the DWAC system, please deliver certificates representing
the Warrant Shares to Investor via reputable overnight courier after receipt of this Notice of Exercise (by facsimile transmission
or otherwise) to:

 

_____________________________________

_____________________________________

_____________________________________

 

Dated:
_____________________

 

___________________________

[Name
of Investor]

 

By:________________________

 

Affirmed:

 

Naked
Brand Group Limited

 

By:
_____________________________

Name:
___________________________

Title:
____________________________

 

    	Exhibit A to Warrant, Page 2

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