Document:

EXECUTION VERSION

 

ROLLOVER AGREEMENT

 

This Rollover Agreement
(this “Agreement”) is made and entered into as of December 18, 2013, by and among, FOHG Holdings,
LLC, a Delaware limited liability company (“Parent”) and the shareholders (the “Rollover Shareholders”)
of Frederick’s of Hollywood Group Inc. (the “Company”) listed on Annex A attached hereto.

 

WHEREAS, concurrently
with the execution and delivery of this Agreement, Parent, FOHG Acquisition Corp., a New York corporation and a wholly-owned subsidiary
of Parent (“Merger Sub”), and the Company are entering into an Agreement and Plan of Merger (the “Merger
Agreement”), which provides, among other things, for the merger of Merger Sub with and into the Company, with the Company
surviving as a wholly-owned subsidiary of Parent (the “Merger”);

 

WHEREAS, concurrent
with the execution and delivery of this Agreement, each Rollover Shareholder has entered into the Parent LLC Agreement (as defined
in Section 7(l) of this Agreement);

 

WHEREAS, TTG Apparel,
LLC, a Delaware limited liability company (“TTG”) and HGI Funding, LLC, a Delaware limited liability company
(“HGI Funding”) are party to that certain Purchase and Sale Agreement (the “Series A SPA”),
dated December 18, 2013, pursuant to which TTG has agreed to sell, and HGI Funding has agreed to purchase, certain shares
of the Series A Convertible Preferred Stock of the Company;

 

WHEREAS, as of the
date hereof, each Rollover Shareholder is the beneficial owner of, and has the sole or shared right to vote and dispose of, (i) that
number of shares of common stock, par value $0.01 per share, of the Company (the “Common Shares”), (ii)
that number of shares of Series A Convertible Preferred Stock, par value $0.01 per share, of the Company, after giving effect to
the transactions contemplated by the Series A SPA (the “Series A Preferred Shares”), and (iii) that number of
shares of Series B Convertible Preferred Stock, par value $0.01 per share, of the Company (the “Series B Preferred
Shares”, and together with the Common Shares and the Series A Preferred Shares, the “Rollover Shares”),
set forth opposite such Rollover Shareholder’s name on Annex A hereto; and

 

WHEREAS, subject to
the conditions set forth herein, immediately prior to the Effective Time, (i) each Rollover Shareholder desires to assign,
transfer, convey and deliver (“Contribute”) that number of Rollover Shares set forth opposite such Rollover
Shareholder’s name on Annex A hereto, and (ii) Parent desires, in exchange for such Contribution of Rollover
Shares, to increase the Capital Value of the Series A Units of Parent (the “Series A Units”) set forth opposite
such Rollover Shareholder’s name on Annex A hereto.

 

NOW, THEREFORE, in
consideration of the mutual promises, covenants, representations and warranties contained herein, the parties hereto agree as follows:

 

1.            Issuance
of Series A Units; Rollover; Cancellation of Securities.

 

(a)          Simultaneously
with the execution of this Agreement, (i) Parent shall issue to each Rollover Shareholder that number of Series A Units set forth
opposite such Rollover Shareholder’s name on Annex A hereto and (ii) any and all membership interests of
Parent previously issued shall automatically be cancelled, cease to exist and no longer be issued and outstanding.

 

    	 

    	 

    

 

(b)          Subject
to the consummation of the transactions contemplated by the Series A SPA, immediately prior to the Effective Time: (i) each
Rollover Shareholder shall Contribute all Rollover Shares held by such Rollover Shareholder to Parent free and clear of any and
all security interests, liens, charges, encumbrances, equities, claims, options, restrictions or any other limitations of whatever
nature, including any restriction on the right to vote, sell or otherwise dispose of such Contribution of Rollover Shares (collectively,
“Liens”), and (ii) subject to Section 1(c) below, in exchange for such Rollover Shares, the Capital
Value (as defined in the Parent LLC Agreement) of the Series A Units set forth opposite such Rollover Shareholder’s name
on Annex A hereto shall be increased as provided in the Parent LLC Agreement (the “Rollover”).

 

(c)          In
the event that any Rollover Shareholder cannot Contribute to Parent all or any portion of the Rollover Shares held by such Rollover
Shareholder free and clear of all Liens in accordance with Section 1(b) above (such shares being referred to herein as “Disqualified
Shares”), a proportionate number of Series A Units previously issued by Parent to such Rollover Shareholder in accordance
with Section 1(a) above shall automatically and without the taking of any further action on the part of the Company or any
Rollover Shareholder be cancelled, cease to exist and no longer be issued and outstanding.  For the avoidance of doubt, no
Disqualified Shares shall be Contributed (or deemed Contributed) to Parent, but shall remain classified, for the purposes of the
Merger Agreement, as Excluded Shares.

 

(d)          Subject
to the terms and conditions set forth herein, each Affiliate Stock Option, Affiliate Company Award or Affiliate Warrant held by
any Rollover Shareholder shall, immediately following the Effective Time, automatically and without the taking of any further action
on the part of the Company or any Rollover Shareholder, be cancelled (and to the extent formerly exercisable shall no longer be
exercisable) and shall no longer represent the right to (i) receive or acquire Common Shares or (ii) any other consideration therefor.

 

(e)          In
the event that the Rollover is consummated but the Merger Agreement is terminated in accordance with its terms, then the Rollover
will be void ab initio and deemed not to have occurred, the Capital Value of the Series A Units shall not be increased pursuant
to Section 1(b) and Parent will return to each Rollover Shareholder the Rollover Shares previously delivered by such
Rollover Shareholder to Parent. For the avoidance of doubt, unless and until the Merger has been consummated and the Effective
Time has occurred, the cancellation of Affiliate Stock Options, Affiliate Company Awards and Affiliate Warrants contemplated by
Section 1(d) shall not occur (and shall not be deemed to have occurred).

 

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2.            Closing.

 

(a)          The
closing of the transactions contemplated by this Agreement (the “Rollover Closing”) will take place at the offices
of Milbank, Tweed, Hadley, & McCloy LLP, One Chase Manhattan Plaza, New York, New York, immediately prior to the Effective
Time.

 

(b)          At
the Rollover Closing, each Rollover Shareholder will deliver to Parent stock certificates duly endorsed for transfer to Parent,
or accompanied by stock powers duly endorsed in blank, representing each such Rollover Shareholder’s Rollover Shares, free
and clear of any and all Liens, and upon receipt of such Rollover Shares in the form and manner described in this Section 2(b)
(but subject to Section 1(c)), the Capital Value of the then issued and outstanding Series A Units shall be increased as
provided in this Agreement and the Parent LLC Agreement.

 

3.           Representations
and Warranties of the Rollover Shareholders. Each Rollover Shareholder represents and warrants, severally but not jointly,
as follows:

 

(a)          Binding
Agreement. Such Rollover Shareholder has the capacity to execute and deliver this Agreement and to consummate the transactions
contemplated hereby, and (i) in the case of each Rollover Shareholder that is an individual, the execution and delivery of
this Agreement does not require any consent from such Rollover Shareholder’s spouse or any other person and (ii) if
such Rollover Shareholder is a corporation or an unincorporated business entity, such Rollover Shareholder has the requisite corporate
or organizational power and authority to execute, deliver and perform this Agreement and to consummate the transactions contemplated
hereby. Such Rollover Shareholder has duly and validly executed and delivered this Agreement and this Agreement constitutes a legal,
valid and binding obligation of such Rollover Shareholder, enforceable against such Rollover Shareholder in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws
affecting creditors’ rights generally and by general equitable principles (regardless of whether enforceability is considered
in a proceeding in equity or at law).

 

(b)          Ownership
of Shares. Such Rollover Shareholder is the “beneficial owner” (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended, which meaning will apply for all purposes of this Agreement) of, and has the sole (or shared
with one or more Rollover Shareholders) power to vote and dispose of the number of Rollover Shares set forth opposite such Rollover
Shareholder’s name in Annex A hereto free and clear of any and all Liens, except as may exist by reason of this
Agreement, the Voting Agreement, the Series A SPA or pursuant to applicable law. Except as provided for in this Agreement and the
Series A SPA, there are no outstanding options or other rights to acquire from such Rollover Shareholder, or obligations of such
Rollover Shareholder to sell or to dispose of, any of such Rollover Shares.

 

(c)          No
Conflict. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby,
nor the performance of such Rollover Shareholder’s obligations hereunder will (a) result in a violation or breach of,
or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation,
or acceleration) under any contract, agreement, instrument, commitment, arrangement or understanding to which such Rollover Shareholder
is a party, or result in the creation of a security interest, lien, charge, encumbrance, equity or claim with respect to such Rollover
Shareholder’s Rollover Shares, (b) require any material consent, authorization or approval of any Person, entity or
Governmental Entity, or (c) violate or conflict with any writ, injunction or decree applicable to such Rollover Shareholder
or such Rollover Shareholder’s Rollover Shares.

 

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(d)          Accredited
Investor. Such Rollover Shareholder is an “accredited investor” as such term is defined in Rule 501(a) promulgated
under the Securities Act of 1933, as amended (the “Securities Act”).

 

(e)          Investor’s
Experience. Such Rollover Shareholder’s financial situation is such that the Rollover Shareholder can afford to bear
the economic risk of holding the Series A Units to be received by such Rollover Shareholder, and such Rollover Shareholder can
afford to suffer complete loss of its investment in such Series A Units. Such Rollover Shareholder’s knowledge and experience
in financial and business matters are such that the Rollover Shareholder is capable of evaluating the merits and risks of the Rollover
Shareholder’s investment in such Series A Units.

 

(f)          Investment
Intent. Such Rollover Shareholder is acquiring Series A Units solely for the Rollover Shareholder’s own account for investment
and not with a view to or for sale in connection with any distribution thereof. Such Rollover Shareholder agrees that the Rollover
Shareholder will not, directly or indirectly, offer, transfer, sell, pledge, hypothecate or otherwise dispose of any Series A Units
(or solicit any offers to buy, purchase or otherwise acquire or take a pledge of any of the Series A Units), except in compliance
with (i) the Securities Act and the rules and regulations of the Securities and Exchange Commission thereunder, (ii) applicable
state and non-U.S. securities or “blue sky” laws and (iii) the provisions of this Agreement and any other
agreement among Parent and the Rollover Shareholders.

 

4.            Conditions
Precedent. The obligations of each Rollover Shareholder to consummate the transactions contemplated hereby are subject to the
conditions set forth in Sections 6.01 and 6.02 of the Merger Agreement being satisfied or waived by Parent (other than
any conditions that by their nature are to be satisfied at the Closing, but subject to the prior or substantially concurrent satisfaction
of such conditions).

 

5.            Tax
Matters.

 

The parties hereto
(i) shall treat the Rollover as a tax-free partnership contribution under Section 721 of the Internal Revenue Code of 1986,
as amended, for all federal, state and local income tax purposes, and (ii) will not take any position on any return that is
inconsistent with such treatment.

 

6.            Transfer
and Other Restrictions

 

Until the termination
of this Agreement pursuant to Section 7(i), and except as provided in the Series A SPA, each Rollover Shareholder agrees
not to sell, sell short, transfer (including by gift), pledge, encumber, assign, deposit or otherwise dispose of, or enter into
any contract, option or other arrangement or understanding with respect to the sale, transfer, pledge, encumbrance, assignment
or other disposition of, any of its Rollover Shares or any interest therein (a “Transfer”), other than in the
case of a Rollover Shareholder who is a natural person, a Transfer of the Rollover Shares held by such Rollover Shareholder to
any member of such Rollover Shareholder’s immediate family, or upon the death of such Rollover Shareholder, to such Rollover
Shareholder’s estate, provided that, as a condition to such Transfer, the transferee agrees to be bound as a Rollover Shareholder
by the terms and conditions of this Agreement.

 

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7.            Miscellaneous.

 

(a)          Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally
or sent by electronic mail, overnight courier service or by registered or certified mail (postage prepaid, return receipt requested),
to any Rollover Shareholder at the address of such Rollover Shareholder set forth on Annex A (or at such other address
as shall be specified by such Rollover Shareholder by like notice) and to Parent, at the following address or at such other address
as shall be specified by Parent by like notice:

 

to:

 

FOHG Holdings, LLC

c/o Harbinger Group Inc.

450 Park Avenue, 30th
Floor

New York, NY 10019

Email: GCheliotis@Harbingergroupinc.com 

Attention: Gus Cheliotis

 

with a copy to (which shall not
constitute notice):

 

Milbank, Tweed, Hadley, &
McCloy LLP

One Chase Manhattan Plaza

New York, New York 10005

Email: AKaye@milbank.com and
RHlawaty@milbank.com

Telecopier: (212) 822-5171

Attention: Alexander M. Kaye

  Roland Hlawaty

 

(b)          Binding
Effect; Benefits. This Agreement will be binding upon the successors, heirs, executors and administrators of the parties hereto.
Nothing in this Agreement, express or implied, is intended or will be construed to give any person other than the parties to this
Agreement and their respective successors or permitted assigns any legal or equitable right, remedy or claim under or in respect
of any agreement or any provision contained herein.

 

(c)          Amendments.
This Agreement may not be modified, amended, altered or supplemented except upon the execution and delivery of a written agreement
executed by all of the parties hereto.

 

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(d)          Assignability.
Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof will be assignable
by any Rollover Shareholder without the prior written consent of Parent.

 

(e)          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, regardless of
the laws that might otherwise govern under applicable principles of conflicts of laws thereof, except to the extent that mandatory
provisions of federal law apply. Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the exclusive jurisdiction of the courts of the State of New York and any appellate court thereof and the United States
District Court for the Southern District of New York and any appellate court thereof, in any action or proceeding arising out of
or relating to this Agreement or the agreements delivered in connection herewith or the transactions contemplated hereby or thereby
or for recognition or enforcement of any judgment relating thereto, and each of the parties hereby irrevocably and unconditionally
(i) agrees not to commence any such action except in such courts, (ii) agrees that any claim in respect of any such action
or proceeding may be heard and determined in such courts, (iii) waives, to the fullest extent it may legally and effectively
do so any objection which it may now or hereafter have to venue of any such action or proceeding in any such courts, and (iv) waives,
to the fullest extent permitted by law, the defense of any inconvenient forum to the maintenance of such action or proceeding in
any such courts. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Each of the parties to this
Agreement irrevocably consents to service of process in any such action or proceeding in the manner provided for notices in Section 7(a)
of this Agreement; provided, however, that nothing in this Agreement shall affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

 

(f)          Counterparts.
This Agreement may be executed by facsimile and in two or more counterparts, each of which will be deemed to be an original, but
all of which together will constitute one and the same instrument.

 

(g)          Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public
policy, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated herein are not affected in any manner materially adverse to any party
hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties
hereto will 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.

 

(h)          Waiver.
Any party to this Agreement may waive any condition to their obligations contained herein.

 

(i)          Termination.
This Agreement will terminate on the termination of the Merger Agreement in accordance with its terms. Termination will not relieve
any party from liability for any breach of its obligations hereunder committed prior to such termination.

 

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(j)          Further
Assurances. Each party to this Agreement shall execute such documents and other papers and take such further actions as may
be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby.

 

(k)          Effectiveness.
The obligations of the Rollover Shareholders under this Agreement shall not be effective or binding upon the Rollover Shareholders
until such time as the Merger Agreement is executed and delivered by the parties thereto.

 

(l)          Interpretation.
The subject headings of the Sections and subsections of this Agreement are included for the purposes of convenience only, and shall
not affect the construction or interpretation of any of the provisions of this Agreement. References in this Agreement to Sections
and Annexes are to the Sections and Annexes to this Agreement, unless the context requires otherwise. Unless the context of this
Agreement otherwise requires, (i) words of any gender include each other gender; (ii) words using the singular or plural number
also include the plural or singular number, respectively and (iii) the terms “hereof,” “herein,” “hereby”
and derivative or similar words refer to this entire Agreement. The term “Parent LLC Agreement” shall mean the
Amended and Restated Limited Liability Company Agreement of Parent, dated as of December 18, 2013. Capitalized terms not
otherwise defined herein have the meanings ascribed to such terms in the Merger Agreement.

 

[Signatures on the Following Page]

 

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IN WITNESS WHEREOF, each of the parties
has executed this Agreement, or caused this Agreement to be executed by their respective officers thereunto duly authorized, as
of the date first written above.

 

	 	FOHG HOLDINGS, LLC
	 	 	 
	 	By:	/s/ Thomas A. Williams
	 	 	Name: Thomas A. Williams
	 	 	Title: Manager
	 	 	 
	 	HGI FUNDING, LLC
	 	 	 
	 	By:	/s/ Thomas A. Williams
	 	 	Name: Thomas A. Williams
	 	 	Title: Executive Vice President and Chief Financial Officer
	 	 	 
	 	TTG APPAREL, LLC
	 	 	 
	 	By:	/s/ Michael T. Tokarz
	 	 	Name: Michael T. Tokarz
	 	 	Title: Manager
	 	 	 
	 	TOKARZ INVESTMENTS, LLC
	 	 	 
	 	By:	/s/ Michael T. Tokarz
	 	 	Name: Michael T. Tokarz
	 	 	Title: Manager
	 	 	 
	 	FURSA ALTERNATIVE STRATEGIES LLC, on behalf of itself and certain funds and accounts affiliated with, or managed by, it or its Affiliates
	 	 	 
	 	By: 	/s/ William F. Harley
	 	 	Name: William F. Harley
	 	 	Title: Chief Investment Officer
	 	 	 
	 	ARSENAL GROUP, LLC
	 	 	 
	 	By:	/s/ William F. Harley
	 	 	Name: William F. Harley
	 	 	Title: Chief Investment Officer
	 	 	 
	 	WILLIAM F. HARLEY
	 	 	 
	 	By: 	/s/ William F. Harley
	 	 	Name: William F. Harley 

 

[Signature
Page to Rollover Agreement]

 

    	 

    	 

    

 

Annex A

 

	Name of Rollover

Shareholder	 	Address	 	Series A

Units1	 	Rollover
    Shares2
	 	 	 	 	 	 	 
	HGI Funding, LLC	 	
        HGI Funding, LLC

        450 Park Avenue, 30th Floor

        New York, NY 10019

         
	 	620.00	 	14,900 shares of 

Series A Convertible Preferred Stock 

and 

107,576 shares of 

Series B Convertible Preferred Stock
	 	 	 	 	 	 	 
	Tokarz Investments, LLC	 	
        Tokarz Investments, LLC

        287 Bowman Avenue

        Purchase, New York 10577
	 	121.39	 	8,386,977 shares of Common Stock
	 	 	 	 	 	 	 
	TTG Apparel, LLC	 	
        TTG Apparel, LLC

        287 Bowman Avenue

        Purchase, New York 10577
	 	108.61	 	1,766,322 shares of Common Stock 

and 

41,878 shares of 

Series A Convertible Preferred Stock
	 	 	 	 	 	 	 
	Arsenal Group, LLC	 	
        Arsenal Group, LLC

        21 Greene Avenue

        Amityville, New York 11701
	 	97.44	 	11,359,292 shares of Common Stock
	 	 	 	 	 	 	 
	Fursa Alternative Strategies LLC	 	
        Fursa Alternative Strategies LLC, on behalf
        of certain funds and accounts affiliated with or managed by it or its affiliates

        21 Greene Avenue

        Amityville, New York 11701
	 	48.83	 	5,692,041 shares of Common Stock
	 	 	 	 	 	 	 
	William F. Harley	 	
        William F. Harley

        Fursa Alternative Strategies LLC

        21 Greene Avenue

        Amityville, New York 11701
	 	3.73	 	474,047 shares of 

Common Stock

 

 

1 To be issued as of the date of this Agreement pursuant
to Section 1(a). Subject to adjustment pursuant to Section 1(c).

2 To be Contributed to Parent at the Rollover Closing
in accordance with Sections 1(b) and 2(b).EXECUTION VERSION

 

VOTING AGREEMENT

 

This VOTING AGREEMENT
(this “Agreement”), dated as of December 18, 2013, is entered into by and among FOHG Holdings,
LLC, a Delaware limited liability company (“Parent”), Frederick’s of Hollywood Group Inc., a New York
corporation (the “Company”), HGI Funding, LLC, a Delaware limited liability company (“HGI Funding”)
and each of the shareholders of the Company listed on Annex A hereto (each, a “Shareholder” and
collectively, the “Shareholders”).

 

WHEREAS, concurrently
with the execution and delivery of this Agreement, Parent, FOHG Acquisition Corp., a New York corporation and wholly-owned subsidiary
of Parent (“Merger Sub”), and the Company are entering into an Agreement and Plan of Merger (as amended from
time to time in accordance with the terms thereof, the “Merger Agreement”; capitalized terms used and not otherwise
defined herein have the meanings assigned to them in the Merger Agreement), which provides, among other things, for the merger
of Merger Sub with and into the Company, with the Company surviving as a wholly-owned subsidiary of Parent (the “Merger”);

 

WHEREAS, as of the date
hereof, each Shareholder is the beneficial owner of, and has the right to vote and dispose of, that number of shares of common
stock, par value $0.01 per share, of the Company (“Common Shares”), set forth opposite such Shareholder’s
name on Annex B hereto (such shares, the “Subject Shares”); and

 

WHEREAS, as a condition
to its willingness to enter into the Merger Agreement, the Company has required that each of the Shareholders agree, and each
of the Shareholders is willing to agree, to the matters set forth herein.

 

NOW, THEREFORE, in consideration
of the foregoing and the agreements set forth below, the parties hereto agree as follows:

 

1.             Voting
of Securities.

 

1.1           Voting
Agreement. From the date hereof, and until the termination of this Agreement pursuant to Section 8, each Shareholder
hereby agrees to vote (or cause to be voted) all of its Subject Shares: (i) in favor of the approval and adoption of the Merger
and the Merger Agreement, at any annual, special or other meeting of the shareholders of the Company, and at any adjournment or
adjournments or postponement thereof, or pursuant to any consent in lieu of a meeting or otherwise, which such Shareholder has
the right to so vote, and (ii) against (1) any Takeover Proposal or Superior Proposal, (2) any action, proposal, transaction or
agreement which could reasonably be expected to result in a breach of any covenant, representation or warranty or any other obligation
or agreement of the Company under the Merger Agreement or of such Shareholder under this Agreement, and (3) any action, proposal,
transaction or agreement that could reasonably be expected to impede, interfere with, delay, discourage, adversely affect or inhibit
the timely consummation of the Merger or the fulfillment of Parent’s, the Company’s or Merger Sub’s conditions
under the Merger Agreement or change in any manner the voting rights of any class of shares of the Company (including any amendments
to the Company’s Constituent Documents).

 

    	 

    	 

    

 

1.2           Irrevocable
Proxy. Solely with respect to the matters described in Section 1.1, each Shareholder constitutes and appoints
HGI Funding, from and after the date hereof until the earlier to occur of the Effective Time and the termination of this Agreement
pursuant to Section 8 (at which point such constitution and appointment shall automatically be revoked), as such Shareholder’s
attorney, agent and proxy (each such constitution and appointment, an “Irrevocable Proxy”), with full power
of substitution, for and in the name, place and stead of such Shareholder, to vote and otherwise act with respect to all of such
Shareholder’s Subject Shares at any annual, special or other meeting of the shareholders of the Company, and at any adjournment
or adjournments or postponement thereof, and in any action by written consent of the shareholders of the Company, on the matters
and in the manner specified in Section 1.1. Each such proxy and power of attorney is irrevocable and coupled with
an interest and, to the extent permitted under applicable Law, shall be valid and binding on any Person to whom such Shareholder
may transfer any of its Subject Shares in breach of this Agreement. Each Shareholder hereby revokes all other proxies and powers
of attorney with respect to all of such Shareholder’s Subject Shares that may have heretofore been appointed or granted
with respect to the matters covered by Section 1.1, and no subsequent proxy or power of attorney shall be given (and
if given, shall not be effective) by such Shareholder with respect thereto on the matters covered by Section 1.1.
All authority herein conferred or agreed to be conferred by any Shareholder shall survive the death or incapacity of such Shareholder
and any obligation of any Shareholder under this Agreement shall be binding upon the heirs, personal representatives, successors
and assigns of such Shareholder. It is agreed that HGI Funding will not use the Irrevocable Proxy granted by any Shareholder unless
such Shareholder fails to comply with Section 1.1 and that, to the extent HGI Funding uses any such Irrevocable Proxy,
it will only vote the Subject Shares subject to such Irrevocable Proxy with respect to the matters specified in, and in accordance
with the provisions of, Section 1.1.

 

1.3           Waiver
of Charter Amendment. Reference is hereby made to that certain Series B Preferred Stock Purchase Agreement, dated as of March
15, 2013, by and between the Company and Five Island Asset Management LLC, a Delaware limited liability company and predecessor
in interest to HGI Funding in and to the Series B Convertible Preferred Stock of the Company (the “Series B Preferred
SPA”). From the date hereof until the termination of this Agreement pursuant to Section 8, and solely with
respect to the Company Shareholders Meeting, HGI Funding hereby waives the Company’s obligation to submit the Proposed Certificate
Amendment (as such term is defined in the Series B Preferred SPA) to its shareholders at such Company Shareholders Meeting (as
defined in, and contemplated by, the Merger Agreement). For the avoidance of doubt, if such Company Shareholders Meeting does
not occur, or this Agreement is terminated in accordance with its terms, the waiver set forth in this Section 1.3 shall
be null and void, and the obligations of the Company set forth in Section 6.4 of the Series B Preferred SPA shall remain in full
force and effect, unless and until HGI Funding determines, in its sole discretion, to affirmatively waive such obligations in
writing.

 

1.4           Certain
Written Consents and Waivers With Respect to the Merger.

 

(a)          TTG
Apparel, LLC as holder of all of the issued and outstanding shares of Series A Convertible Preferred Stock of the Company, in
accordance with Article 3(c), Section 3(b) of the Restated Certificate of Incorporation of the Company, as amended, and Section
903(a)(2) of the New York Business Corporation Law (the “NYBCL”) does hereby irrevocably consent to, and does
hereby waive any and all rights to receive payment under Article 3(c), Section 4 of the Restated Certificate of Incorporation
of the Company, as amended, in connection with, the Merger Agreement, and the transactions contemplated thereby, including the
Merger.

 

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(b)          HGI
Funding as holder of all of the issued and outstanding shares of Series B Convertible Preferred Stock of the Company, in accordance
with Article 3(d), Section 3(b) of the Restated Certificate of Incorporation of the Company, as amended, and Section 903(a)(2)
of the NYBCL does hereby irrevocably consent to, and does hereby waive any and all rights to receive payment under Article 3(d),
Section 4 of the Restated Certificate of Incorporation of the Company, as amended, in connection with, the Merger Agreement, and
the transactions contemplated thereby, including the Merger.

 

2.             Representations
and Warranties of Each Shareholder.

 

Each Shareholder, severally,
as to itself, represents and warrants to the Company as follows:

 

2.1           Binding
Agreement. Such Shareholder has the legal capacity to execute, deliver and perform this Agreement and to consummate the transactions
contemplated hereby and (i) if such Shareholder is a natural person, the execution, delivery and performance of this Agreement
by such Shareholder and the consummation by such Shareholder of the transactions contemplated by this Agreement do not require
any consent from such Shareholder’s spouse or any other person, and (ii) if such Shareholder is corporation or unincorporated
business entity, such Shareholder has the requisite corporate or organizational power and authority to execute, deliver and perform
this Agreement and to consummate the transactions contemplated hereby. Such Shareholder has duly and validly executed and delivered
this Agreement and this Agreement constitutes a legal, valid and binding obligation of such Shareholder, enforceable against such
Shareholder in accordance with its terms.

 

2.2           No
Conflict. Neither the execution, delivery and performance by such Shareholder of this Agreement, nor the consummation by such
Shareholder of the transactions contemplated hereby, nor the compliance by such Shareholder with any of the provisions hereof,
will (a) if such Shareholder is not a natural person, conflict with or result in a breach of any provision of its organizational
documents, (b) result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a
default (or give rise to any right of termination, cancellation, or acceleration) under any contract, agreement, instrument, commitment,
arrangement or understanding to which such Shareholder is a party, (c) result in the creation of a security interest, lien,
charge, encumbrance, or other similar claim on such Shareholder’s Subject Shares, or (d) violate or conflict with any
Law, writ, injunction or decree applicable to such Shareholder or such Shareholder’s Subject Shares.

 

2.3           Ownership
of Subject Shares. Such Shareholder is the “beneficial owner” (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) of, and has the sole (or shared with one or more
Shareholders) power to vote and dispose of, the Common Shares set forth opposite such Shareholder’s name on Annex B
hereto, free and clear of any security interests, liens, charges, encumbrances, or other similar claims (including any voting
agreement or other restriction on the right to vote, sell or otherwise dispose of such securities), other than pursuant to this
Agreement, the Rollover Agreement, federal securities Laws and Company trading policies.

 

    	3

    	 

    

 

3.             Representations
and Warranties of the Company.

 

The Company represents
and warrants to the Shareholders as follows:

 

3.1           Binding
Agreement. The Company is a corporation duly incorporated, validly existing and in good standing under the Laws of the State
of New York and has full corporate power and authority to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby have been duly and validly authorized by the board of directors of the Company, and no
other corporate proceedings on the part of the Company are necessary to authorize the execution, delivery, and performance of
this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby. The Company has duly
and validly executed this Agreement and this Agreement constitutes a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms.

 

3.2           No
Conflict. Neither the execution, delivery and performance by the Company of this Agreement, the consummation by the Company
of the transactions contemplated hereby, nor the compliance by the Company with any of the provisions hereof, will (a) conflict
with or result in a breach of any provision of its certificate of incorporation or by-laws, (b) result in a violation or
breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination,
cancellation, or acceleration) under any contract, agreement, instrument, commitment, arrangement or understanding to which it
is a party, (c) require any consent, authorization or approval of any Person or (d) violate or conflict with any Law,
writ, injunction or decree applicable to the Company.

 

4.             Transfer
and Other Restrictions.

 

Until the earlier of
(i) the termination of this Agreement pursuant to Section 8 and (ii) the date on which the Company Shareholder
Approval is obtained:

 

4.1           Certain
Prohibited Transfers. Each Shareholder agrees not to:

 

(a)           sell,
sell short, transfer (including by gift), pledge, encumber, assign, deposit or otherwise dispose of, or enter into any contract,
option or other arrangement or understanding with respect to the sale, transfer, pledge, encumbrance, assignment or other disposition
of, any of its Subject Shares or any interest therein (a “Transfer”), other than in the case of a Shareholder
who is a natural person, a Transfer of the Subject Shares held by such Shareholder to any member of such Shareholder’s immediate
family, or upon the death of such Shareholder, to such Shareholder’s estate (a “Permitted Transfer”),
provided that, as a condition to such Permitted Transfer, the transferee agrees to be bound as a Shareholder by the terms
and conditions of this Agreement;

 

    	4

    	 

    

 

(b)           with
respect to any of its Subject Shares, grant any proxy or power of attorney or enter into any voting agreement or other arrangement
relating to the matters covered by Section 1.1, other than this Agreement; or

 

(c)           Transfer
any of its Common Shares into a voting trust.

 

4.2           Additional
Securities. Without limiting any provisions of the Merger Agreement, in the event that a Shareholder purchases, acquires the
right to vote or otherwise acquires beneficial ownership of any Common Shares or other securities of the Company after the execution
of this Agreement, such Common Shares or other securities shall be subject to the terms, and shall constitute Subject Shares for
all purposes, of this Agreement. In addition, in the event of any stock dividend, stock split, recapitalization, reclassification,
combination or exchange of Common Shares on, of or affecting any Shareholder’s Subject Shares, then the terms of this Agreement
shall apply to the Common Shares or other such securities of the Company held by such Shareholder immediately following the effectiveness
of such event.

 

5.             Publication. Each Shareholder hereby permits the Company to publish and disclose such Shareholder’s identity and ownership of the
Subject Shares, the nature of the such Shareholder’s commitments, arrangements and understandings pursuant to this Agreement,
the text of this Agreement and/or any other information relating to the Shareholder required to be disclosed by applicable Law,
in (a) press releases relating to the Merger Agreement, (b) the Schedule 13E-3 and the Proxy Statement, (c) any
document required to be filed with the U.S. Securities and Exchange Commission or other regulatory agencies or required to
be mailed by the Company to its shareholders relating to the Merger Agreement and (d) any other disclosures or filings required
under the Merger Agreement or applicable Law relating to the Merger Agreement.

 

6.             Waiver
of Appraisal and Dissenters' Rights. Each Shareholder hereby waives, and agrees not to assert or perfect, any rights of appraisal
or rights to dissent from the Merger that such Shareholder may have by virtue of ownership of the Subject Shares.

 

7.             Specific
Performance. Each party hereto acknowledges that it will be impossible to measure in money the damage to the other party if
a party hereto fails to comply with any of the obligations imposed by this Agreement, that every such obligation is material and
that, in the event of any such failure, the other party will not have an adequate remedy at law or damages. Accordingly, each
party hereto agrees that injunctive relief or other equitable remedy, in addition to remedies at law or damages, is the appropriate
remedy for any such failure and will not oppose the seeking of such relief on the basis that the other party has an adequate remedy
at law. Each party hereto agrees that it will not seek, and agrees to waive any requirement for, the securing or posting of a
bond in connection with the other party’s seeking or obtaining such equitable relief.

 

8.             Termination.
This Agreement shall terminate upon the first to occur of (a) the Effective Time, (b) the effectiveness of a notice of termination
of the Merger Agreement in accordance with Article VII thereof and (c) the date that is one (1) year from the date of this Agreement.
The termination of this Agreement in accordance with this Section 8 shall not relieve any party from liability for any
breach of its obligations hereunder committed prior to such termination.

 

    	5

    	 

    

 

9.             Survival. The representations, warranties and agreements of the parties contained in this Agreement shall not survive any termination
of this Agreement, provided, however, that no such termination shall relieve any party hereto from any liability
for any breach of this Agreement committed prior to such termination.

 

10.           Notices. All
notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally
or sent by email, overnight courier service or by registered or certified mail (postage prepaid, return receipt requested), to
the respective parties at the following addresses or at such addresses as shall be specified by the parties by like notice:

 

If to Parent or HGI
Funding:

 

Harbinger Group Inc.

450 Park Avenue, 30th
Floor

New York, NY 10019

Email: GCheliotis@Harbingergroupinc.com

Attention: Gus Cheliotis

 

with a copy to (which
shall not constitute notice):

 

Milbank, Tweed, Hadley
& McCloy LLP

One Chase Manhattan
Plaza

New York, New York 10005

Email: AKaye@milbank.com
and RHlawaty@milbank.com

Attention: Alexander
M. Kaye and Roland Hlawaty

 

If to the Company:

 

Frederick’s of
Hollywood Group Inc.

6255 Sunset Boulevard,
6th Floor

Hollywood, CA 90028

Email: marci.frankenthaler@fredericks.com

Attention: Legal Department

 

with a copy to (which
shall not constitute notice):

Graubard Miller

The Chrysler Building

405 Lexington Avenue

New York, NY 10174-1901

Email: dmiller@graubard.com
and plucido@graubard.com

Attention: David Alan
Miller, Esq. and Paul Lucido, Esq.

 

    	6

    	 

    

 

If to any Shareholder,
to the address for such Shareholder set forth on Annex A hereto.

 

11.           Entire
Agreement. This Agreement (including the documents and instruments referred to herein) constitutes the entire agreement and
supersedes all other prior agreements and understandings, both written and oral, among the parties, or any of them, with respect
to the subject matter hereof.

 

12.           Amendment;
Release. This Agreement may not be modified, amended, altered or supplemented except by a written agreement between the Company,
Parent, HGI Funding and any Shareholder, provided that any such modification, amendment, alteration or supplement shall
be effective only with respect to such Shareholder.

 

13.           Successors
and Assigns. This Agreement shall not be assigned by operation of law or otherwise by any Shareholder without the prior written
consent of the Company and each of the Shareholders, except to another Person in connection with a Permitted Transfer. This Agreement
will be binding upon, inure to the benefit of and be enforceable by each party and such party’s respective heirs, beneficiaries,
executors, representatives and permitted assigns.

 

14.           Rights
and Remedies. The Company’s rights and remedies in respect of a breach or threatened breach of this Agreement shall
be as set forth in the Merger Agreement.

 

15.           Counterparts. This Agreement may be executed by facsimile and in two or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same instrument.

 

16.           Governing
Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York,
regardless of the Laws that might otherwise govern under applicable principles of conflicts of laws thereof, except to the extent
that mandatory provisions of federal Law apply. Each of the parties hereto hereby irrevocably and unconditionally submits, for
itself and its property, to the exclusive jurisdiction of the courts of the State of New York and any appellate court thereof
and the United States District Court for the Southern District of New York and any appellate court thereof, in any action or proceeding
arising out of or relating to this Agreement or the agreements delivered in connection herewith or the transactions contemplated
hereby or thereby or for recognition or enforcement of any judgment relating thereto, and each of the parties hereby irrevocably
and unconditionally (i) agrees not to commence any such action except in such courts, (ii) agrees that any claim in
respect of any such action or proceeding may be heard and determined in such courts, (ii) waives, to the fullest extent it
may legally and effectively do so any objection which it may now or hereafter have to venue of any such action or proceeding in
any such courts, and (iv) waives, to the fullest extent permitted by Law, the defense of any inconvenient forum to the maintenance
of such action or proceeding in any such courts. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by Law. To the extent permitted by Law, the Company hereby irrevocably agrees that any suit, action or other proceeding brought
by it or its Affiliates against any Parent-Related Party or its Affiliates or its or their respective Representatives (including
any lender agent or lender) shall be brought, heard and determined solely in such courts. Each of the parties to this Agreement
irrevocably consents to service of process in any such action or proceeding in the manner provided for notices in Section 10
of this Agreement; provided, however, that nothing in this Agreement shall affect the right of any party to
this Agreement to serve process in any other manner permitted by Law.

 

    	7

    	 

    

 

17.           Waiver
of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS
DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT
(A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE SUCH WAIVER, (B) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS
OF SUCH WAIVER, (C) IT MAKES SUCH WAIVER VOLUNTARILY, AND (D) IT HAS BEEN INDUCED TO ENTER THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS CONTAINED IN THIS SECTION 17.

 

18.           Severability. Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction,
be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of any terms or provisions of this Agreement in any
other jurisdiction so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner
adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced,
the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

 

19.           Capacity. Each Shareholder is entering into this Agreement solely in his or her capacity as the legal or beneficial owner of his or
her Subject Shares (if any) and nothing herein shall limit or affect any actions taken by, or omissions of, any Shareholder or
any of its Affiliates or Associates in the capacity of director or officer of the Company (including exercising rights under the
Merger Agreement), and no such person who is or becomes during the term hereof a director or officer of the Company shall be deemed
to make any agreement or understanding in this Agreement in such person’s capacity as a director or officer. Nothing in
this Agreement shall be construed to prohibit, limit or restrict any Shareholder from exercising such Shareholder’s fiduciary
duties as an officer or director to the Company or its shareholders.

 

20.           Parties
in Interest. This Agreement shall be binding upon and inure solely to the benefit of each party hereto, and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

 

    	8

    	 

    

 

21.           Interpretation. The
subject headings of the Articles and Sections of this Agreement are included for the purposes of convenience only, and shall not
affect the construction or interpretation of any of the provisions of this Agreement. References in this Agreement to Sections
and Annexes are to the Sections and Annexes to this Agreement, unless the context requires otherwise. Unless the context of this
Agreement otherwise requires, (i) words of any gender include each other gender; (ii) words using the singular or plural
number also include the plural or singular number, respectively; (iii) the terms “hereof,” “herein,”
“hereby” and derivative or similar words refer to this entire Agreement; and (iv) the word “or” shall
be disjunctive but not exclusive unless the context clearly prohibits that construction.

 

22.           Effectiveness.
The obligations of the Shareholders under this Agreement shall not be effective or binding upon the Shareholders until such
time as the Merger Agreement is executed and delivered by all of the parties thereto.

 

[Signatures on the following page]

 

    	9

    	 

    

 

IN WITNESS WHEREOF,
each of the parties has executed this Agreement, or caused this Voting Agreement to be executed by their respective officers thereunto
duly authorized, as of the date first written above.

 

	 	FOHG HOLDINGS, LLC
	 	 	 
	 	By:	 /s/ Thomas A. Williams
	 	 	Name:	Thomas A. Williams
	 	 	Title:	Manager
	 	 	 
	 	HGI FUNDING, LLC
	 	 	 
	 	By:	/s/ Thomas A. Williams
	 	 	Name:	Thomas A. Williams
	 	 	Title:	Executive Vice President and Chief Financial Officer
	 	 	 
	 	FREDERICK’S OF HOLLYWOOD GROUP INC. 
	 	 	 
	 	By:	/s/ Thomas J. Lynch 
	 	 	Name:	Thomas J. Lynch 
	 	 	Title:	Chief Executive Officer
	 	 	 
	 	TTG APPAREL, LLC
	 	 	 
	 	By:	/s/  Michael T. Tokarz
	 	 	Name: Michael T. Tokarz
	 	 	Title: Manager
	 	 	 
	 	TOKARZ INVESTMENTS, LLC
	 	 
	 	By:	/s/  Michael T. Tokarz
	 	 	Name: Michael T. Tokarz
	 	 	Title: Manager
	 	 	 
	 	FURSA ALTERNATIVE STRATEGIES LLC, on behalf of itself and certain
    funds and accounts affiliated with, or managed by, it or its Affiliates
	 	 	 
	 	By:	/s/  William F. Harley
	 	 	Name: William F. Harley
	 	 	Title: Chief Investment Officer
	 	 	 
	 	ARSENAL GROUP, LLC 
	 	 
	 	By:	/s/  William F. Harley
	 	 	Name: William F. Harley
	 	 	Title: Chief Investment Officer
	 	 	 
	 	WILLIAM F. HARLEY
	 	 
	 	By:	/s/  William F. Harley
	 	 	Name: William F. Harley

 

[Signature Page to Voting Agreement]

 

    	 

    	 

    

 

Annex A

 

Shareholders Party to this Agreement:

 

	Shareholder	 	Address
	 	 	 
	Arsenal Group, LLC	 	Arsenal Group, LLC
	 	 	21 Greene Avenue
	 	 	Amityville, New York 11701
	 	 	 
	Fursa Alternative Strategies LLC, on behalf of certain funds and accounts affiliated with or managed by it or its affiliates	 	Fursa Alternative Strategies LLC, on behalf of certain funds and accounts affiliated with or managed by it or its affiliates
	 	 	21 Greene Avenue
	 	 	Amityville, New York 11701
	 	 	 
	Tokarz Investments, LLC	 	Tokarz Investments, LLC
	 	 	287 Bowman Avenue
	 	 	Purchase, New York 10577
	 	 	 
	TTG Apparel, LLC	 	TTG Apparel, LLC
	 	 	287 Bowman Avenue
	 	 	Purchase, New York 10577
	 	 	 
	William F. Harley	 	William F. Harley
	 	 	Fursa Alternative Strategies LLC
	 	 	21 Greene Avenue
	 	 	Amityville, New York 11701

 

    	 

    	 

    

 

Annex B

 

	Shareholder	 	Common 
Shares	 
	 	 	 	 
	Arsenal Group, LLC	 	 	11,359,292	 
	 	 	 	 	 
	Fursa Alternative Strategies LLC, on behalf of certain funds and accounts affiliated with or
    managed by it or its affiliates	 	 	5,692,041	 
	 	 	 	 	 
	Tokarz Investments, LLC	 	 	8,386,977	 
	 	 	 	 	 
	TTG Apparel, LLC	 	 	1,766,322	 
	 	 	 	 	 
	William F. Harley	 	 	474,047

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