Document:

Exhibit 10.1

                           Duckwall-ALCO Stores, Inc.

                           MEMORANDUM OF UNDERSTANDING
                          (Stock Purchase Transaction)

      THIS  MEMORANDUM  OF  UNDERSTANDING  (Stock  Purchase  Transaction)  (the
"Agreement") is made as of April 19, 2005, by and among  Duckwall-ALCO  Stores,
Inc., a Kansas  corporation  ("Buyer"),  and Kathleen O. Macke,  trustee of the
Kenneth A. Macke Revocable Trust ("Seller").

                                    RECITAL

      WHEREAS, Seller owns 399,362 shares of common stock, $.0001 par value, of
the Company (the "Shares"); and

      WHEREAS, in accordance with the terms of this Agreement Seller desire to
sell, and Buyer desires to purchase, the Shares for the consideration and on the
terms and conditions set forth in this Agreement.

     1. Purchase of Shares. Buyer hereby agrees to pay to Seller on or before
April 22, 2005 in cash $7.2 million pursuant to the wire transfer instructions
attached hereto on Exhibit A in exchange for transfer on or before April 22,
2005 by Seller to Buyer of the Shares free and clear of all liabilities, liens
or encumbrances.

     2. Closing Procedures

      On or before April 22, 2005, Seller shall send by fax or email a letter of
instruction substantially in the form attached hereto as Exhibit B instructing
Fidelity Investments to mark the Shares "DWAC withdrawal from Broker."

      On or before April 22, 2005, Buyer shall send by fax or email a letter of
instruction substantially in the form attached hereto as Exhibit C instructing
and authorizing UMB Bank, n.a., Securities Transfer Division ("UMB"), to:

          a. immediately upon receipt of the notice of the DWAC, accept the DWAC
of the Shares and to retire the Shares; and

          b. inform Buyer once UMB has accepted the DWAC of the Shares and
retired the Shares by sending an email to Dick Mansfield, the Chief Financial
Officer of the Company at dmansfield@duckwall.com.

     3. Seller's Representations and Warranties

                                       4
<PAGE>

      Seller represents and warrants to Buyer that the matters set forth in this
Article 3.

          a. Organization and Good Standing. Seller is a trust duly organized,
validly existing, and in good standing under the laws of California, with full
power and authority to conduct the transactions contemplated hereby.

          b. Authority. Seller has full power and authority to execute and
deliver this Agreement and to perform Seller's obligations under this Agreement
and to consummate the transactions contemplated hereby. The execution and
delivery by Seller of this Agreement and the performance by Seller of Seller's
obligations under this Agreement and the consummation of the transactions
contemplated hereby by Seller have been duly and validly authorized by any and
all necessary action on Seller's part. This Agreement has been duly executed and
delivered by Seller and constitutes the legal, valid and binding obligation of
Seller, enforceable against Seller in accordance with its terms.

          c. Consents and Approvals. Except for filing promptly after closing
filing an amended Schedule 13D with the Securities and Exchange Commission
("SEC"), there is no requirement applicable to Seller to make any filing with,
or to obtain any permit, authorization, consent or approval of, any governmental
authority as a condition to the lawful consummation of the transactions
contemplated hereby.

          d. Shares. Seller owns the Shares free and clear of any and all
liabilities, liens or encumbrances.

     4. Buyer's Representations and Warranties

      Buyer represents and warrants to Seller the matters set forth in this
Article 4.

          a. Organization and Good Standing. Buyer is a corporation duly
organized, validly existing, and in good standing under the laws of Kansas, with
full corporate power and authority to conduct the transactions contemplated
hereby.

          b. Authority. Buyer has full power and authority to execute and
deliver this Agreement and to perform Buyer's obligations under this Agreement
and to consummate the transactions contemplated hereby. The execution and
delivery by Buyer of this Agreement and the performance by Buyer of Buyer's
obligations under this Agreement and the consummation of the transactions
contemplated hereby by Buyer have been duly and validly authorized by any and
all necessary action on Buyer's part. This Agreement has been duly executed and
delivered by Buyer and constitutes the legal, valid and binding obligation of
Buyer, enforceable against Buyer in accordance with its terms.

          c. Consents and Approvals. Other than filing with the SEC a Current
Report on Form 8-K and reporting this transaction publicly and to the SEC, there
is no requirement applicable to Buyer to make any filing with, or to obtain any
permit, authorization, consent or approval of, any governmental authority as a
condition to the lawful consummation of the transactions contemplated hereby.

     5. Conditions to Obligation of Seller. Seller's obligation to consummate
the transactions contemplated by this Agreement is subject to the following
conditions:

          a. The representations and warranties set forth in Section 4 shall be
true and correct in all material respects at and as of the Closing Date.

                                       5
<PAGE>

          b. Buyer shall have performed all obligations and complied with all
covenants hereunder required to be performed or complied with by Buyer at or
prior to the Closing.

          c. There shall not be any injunction, judgment, order, decree, ruling
or change in effect preventing or prohibiting consummation of any of the
transactions contemplated by this Agreement.

      Sellers may waive by notice to Buyer any condition specified in this
Section 5 at or prior to the Closing.

     6. Conditions to Obligation of Buyer. Buyer's obligation to consummate the
transactions contemplated by this Agreement is subject to the following
conditions:

          a. The representations and warranties set forth in Section 3 shall be
true and correct in all material respects at and as of the Closing Date.

          b. Seller shall have performed all obligations and complied with all
covenants hereunder required to be performed or complied with by Seller at or
prior to the Closing.

          c. There shall not be any injunction, judgment, order, decree, ruling
or change in effect preventing or prohibiting consummation of any of the
transactions contemplated by this Agreement.

      Buyer may waive by notice to Seller any condition specified in this
Section 5 at or prior to the Closing.

     7. Governing Law. This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of Kansas without giving effect
to any choice or conflict of law provision or rule (whether of the State of
Kansas or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Kansas.

     8. Entire Agreement And Modification. This Agreement supersedes all prior
agreements between the parties with respect to its subject matter and
constitutes along with the documents referred to in this Agreement a complete
and exclusive statement of the terms and conditions of the agreement between the
parties with respect to its subject matter. This Agreement may not be amended
except by a written agreement executed by all parties.

     9. Assignment, Successors, and No Third-Party Rights. No party may assign
any of its rights under this Agreement without the prior consent of the other
parties. Subject to the preceding sentence, this Agreement will apply to, be
binding in all respects upon, and inure to the benefit of the successors and
permitted assigns of Buyer and the respective legal representatives, successors,
executors, administrators, heirs and assigns of Seller. Nothing expressed or
referred to in this Agreement will be construed to give any person other than
the parties to this Agreement any legal or equitable right, remedy or claim
under or with respect to this Agreement or any provision of this Agreement. This
Agreement and all of its provisions and conditions are for the sole and
exclusive benefit of the parties and their respective legal representatives,
executors, administrators, heirs, successors and assigns.

                                       6
<PAGE>

     10. Severability. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of
this Agreement will remain in full force and effect. Any provision of this
Agreement held invalid or unenforceable only in part or degree will remain in
full force and effect to the extent not held invalid or unenforceable.

     11. Section Headings, Construction.

          a. The section headings in this Agreement are provided for convenience
only and will not affect the construction or interpretation of this Agreement.

          b. Unless the context of this Agreement otherwise requires, (a) words
of any gender include each other gender; (b) words using the singular or plural
number also include the plural or singular number, respectively; (c) the terms
"hereof," "herein," "hereby" and derivative or similar words refer to this
entire Agreement and not to any particular provision of this Agreement; (d) the
terms "Section," "Schedules" and "Exhibit" without reference to any document
refer to the specified Section, Schedule and Exhibit, respectively, of this
Agreement; and (e) any reference to a Section herein shall be a reference to the
entire section, (e.g., a reference to Section 7 shall include all parts thereof,
and a reference to Section 7.1 shall include all parts thereof).

          c. The words "including," "include" and "includes" are not exclusive
and shall be deemed to be followed by the words "without limitation"; if
exclusion is intended, the word "comprising" is used instead.

          d. The word "or" shall be construed to mean "and/or" unless the
context clearly prohibits that construction.

          e. Any reference to any federal, state, local or foreign statute or
law shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise.

          f. The parties have participated jointly in the negotiation and
drafting of this Agreement. If an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any of the provisions of
this Agreement.

     12. Counterparts/Facsimile. This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement. The Agreement may be executed by facsimile or
electronic signature, each of which shall be lawful and binding

                                       7
<PAGE>

      IN WITNESS WHEREOF, the parties have executed and delivered this Agreement
as of the date first written above.

                        Kenneth A. Macke Revocable Trust
                        dated as of December 16, 1986

                    By: /s/Kathleen O. Macke
                        -------------------------------------------------------
                           Kathleen O. Macke, Trustee

                           Duckwall-ALCO Stores, Inc.

                    By: /s/Richard A. Mansfield
                        -------------------------------------------------------
                           Name: Richard A. Mansfield
                           Title:  Vice President - Finance
                                   Chief Financial Officer

                                       8
<PAGE>

                                    Exhibit A
                                    ---------

                      Wire Transfer Instructions for Seller

Fidelity wire instructions                                          Page 1 of 1

Nancy Widener
-------------------------------------------------------------------------------

From:   Bleuel, John [John.Bleuel@FRM.COM]

Sent:   Tuesday, February 03, 2004 12:28 PM

To:     nancy@kaassets.com

Cc:     Joe Flaherty - Compliance

Subject:Fidelity wire instructions

        Wire to:  J.P. Morgan Chase Bank
        ABA number: 021000021
        For credit to: National Financial Services
        Account number: 066196-221
        For benefit of:  KATHLEEN MACKE Trust Under Agreement
        Account number: 613-515183
        Address:  One Chase Manhattan Plaza, New York City, NY 10004

Thanks,
John
John Bleuel
Senior Client Service Manager
Operations & Services Group - Advisor Client Service
Fidelity Investments

Clearing, custody or other brokerage services may be provided by Fidelity
Brokerage Services LLC or National Financial Services LLC, members NYSE, SIPC

                                       9
<PAGE>

                                    Exhibit B
                                    ---------

              Seller's Letter of Instruction to Fidelity Investment

To:      Fidelity Investments

                Re: 613-515183
                KATHLEEN MACKE Trust Under Agreement

          Consider this my letter of instructions to DWAC all shares (399,362)
          of DUCKWALL ALCO STORES INC. (DUCK) directly to transfer agent of
          record, UMB Bank.

          Sincerely,

          Kathleen O. Macke
          Trustee

                                       10
<PAGE>

                                   Exhibit C
                                   ----------

                  Buyer's Letter of Instructions to UMB Bank

                           Duckwall-ALCO Stores, Inc.

                              Letter of Instruction

                                 April 22, 2005

Ms. Nancy Hoffman
UMB Bank, n.a.
Securities Transfer Division
928 Grand Blvd. 5th Floor
Kansas City, MO 64106

      In accordance with a Memorandum of Understanding dated as of April 19,
2005 between Duckwall-ALCO Stores, Inc. (the "Company") and K&A Asset Management
LLC ("K&A"), on behalf of Kathleen O. Macke, trustee of the Kenneth A. Macke
Revocable Trust, K&A has instructed Fidelity Investments to initiate a DWAC
withdrawal for 399,362 shares of Common Stock, $.0001 par value, of the Company
(the "Shares").

      Pursuant to this Letter of Instruction, I, on behalf of the Company,
hereby authorize UMB Bank, n.a., Securities Transfer Division ("UMB"), to
(immediately upon receipt of the DWAC) accept the DWAC of the Shares and to
retire the Shares.

      Once UMB has accepted the DWAC of the Shares and retired the Shares, you
are further instructed to email me at dmansfield@duckwall.com to inform me of
same.

                                          Duckwall-ALCO Stores, Inc.

                                       By:
                                          -------------------------------------
                                          Name:  Richard A. Mansfield
                                          Title:  Vice President - Finance
                                                  Chief Financial Officer

                                       11Exhibit 10.3

AGREEMENT

 

This
Agreement is effective as of this 10th day of May, 2004 (the "Effective
Date"), by and between House of Brussels Chocolates, Inc. ("HOBC") of 750
Terminal Ave., Suite 208, Vancouver, British Columbia V6A 2M5, Canada and
Walgreen Co., ("Walgreens") of 200 Wilmot Road, Deerfield, Illinois
60015.

 

1.   
Assignment and Transfer of TRUFFELINOS and TRUFFELINOS LITE Trademarks and
Registrations. In consideration for the private label product
production commitments as described herein, HOBC agrees to assign to Walgreens,
and Walgreens agrees to receive from HOBC, any and all HOBC right, title and
interest in and to the TRUFFELINOS and TRUFFELINOS LITE trademarks and
corresponding applications described on Exhibit A hereto (incorporated herein by
reference) which HOBC may have, any and all trade dress rights in and to the
current TRUFFELINOS and TRUFFELINOS LITE products (individually and
collectively, the "Trademarks"), and any and all goodwill associated therewith
as of the Effective Date, and further, HOBC agrees to produce the TRUFFELINOS
and TRUFELLINOS LITE products as more fully described in this Agreement. In
connection with this Trademark transfer, concurrent with the execution of this
Agreement, HOBC will execute the Trademark Assignment attached hereto as Exhibit
B, and any such additional assignment documentation as Walgreens may require,
such documents to be effective as of the Effective Date or as of the earliest
date thereafter as may be legally required in connection with the trademark
assignment process. Any and all costs associated with preparing, recording,
registering and/or otherwise affecting the trademark assignment documents shall
be borne by Walgreens.

 

2.   
Production Terms/Pricing. Subject to the terms of this Agreement, HOBC
will be the sole and exclusive producer of Walgreens' TRUFFELINOS and
TRUFFELINOS LITE products (collectively referred to herein as the "Products") as
follows:

 

	
      (i)
	TRUFFELINOS
      shall be produced in 8, 12 and 16 oz. sized boxes and a 1 oz. sampler
      size,; and 

 

	
      (ii)
	TRUFFELINOS
      LITE, containing low-carbohydrate/no-sugar-added chocolates, shall be
      produced in 7, 10.5 and 14 oz. boxes and a 1 oz, sampler size
      (the "Products")

 

with each
box containing (A) six flavors of chocolate-coated candies consisting of
Caramel, Coffee Crisp, Chocolate Truffle, Peanut Butter, Orange and Lemon, and
(B) half milk chocolate and half dark chocolate-coated candies.

 

Production
shall commence as of the Effective Date of this Agreement and continue for two
(2) years, ending on the second anniversary of the Effective Date, with
guaranteed annual purchases by Walgreens of no less than $3 million worth of
Products from HOBC. The packaging, branding and labeling of the Products shall
be produced by HOBC in the manner described in Exhibit C, attached hereto and
made a part hereof by reference.

 

HOBC
shall supply Walgreens with such inventory/production of the Products and other
private label products as Walgreens may reasonably require from time to time
during the term hereof, with HOBC at all times maintaining a 30-day supply of
such respective Products based on Walgreens' average monthly purchases from HOBC
over the previous six-month period; provided, however, that during the- first
six months of the term, H0BC shall maintain such inventory levels as set forth
in Walgreens projected sales report delivered to HOBC.

 

The
pricing for the Products shall be that which is outlined on Exhibit D, attached
hereto and made a part hereof by reference, and shall remain fixed for the term
of this Agreement; provided, however, that in the event at any time during the
term of this Agreement, Walgreens is offered a lower price to produce the
Products by another vendor, such production to commence no earlier than the
first anniversary of the Effective Date, Walgreens shall present such offer to
HOBC and HOBC shall have a period of thirty (30) days to match such offer. In
the event HOBC refuses to match such offer, Walgreens shall have the right to
terminate this Agreement, such termination to be effective no earlier than the
first anniversary of the Effective Date, and in such case, all right, title and
interest in and to the TRUFFELINOS and TRUFFELINOS LITE trademarks shall remain
with Walgreens. HOBC shall deliver the Products to Walgreens' designated
distribution centers by the dates set forth in Walgreens' respective purchase
orders, which shall contemplate a minimum order lead-time of at least 10 days.
HOBC represents and warrants that the price and terms offered to Walgreens for
the Products shall be at least as favorable as those offered by HOBC to any
other third party private label customer of HOBC purchasing chocolates and
low-carbohydrate/ no-sugar-added chocolates. Further, every six (6) months
during the term of this Agreement, the parties agree to review the pricing for
the Products, and in the event that HOBC's cost to produce the Products has
decreased, the price to Walgreens for the Products shall be lowered by the same
percentage, effective as of such review date,

 

Walgreens,
as owner of the TRUFFELINOS and TRUFFELINOS LITE trademarks, shall be free to
use these marks on any other products Walgreens may produce or have produced for
it at any time during the term of this Agreement or thereafter. Provided,
however, that during the term hereof, HOBC shall have a right of first refusal
to match or better the terms and conditions offered to Walgreens by any other
potential supplier of any new TRUFFELINOS or TRUFFELINOS LITE chocolates and/or
low-carbohydrate/no-sugar-added chocolate candies. This right of first refusal
shall apply to any decision by Walgreens to replace the TRUFFELINOS or
TRUFFELINOS LITE Products that are the subject of this Agreement, with a
different sized TRUFFELINOS or TRUFFELINOS LITE Product. HOBC shall have a
period of fifteen (15) days in each instance to determine whether or not to
exercise this right of first refusal on the terms and conditions presented by
Walgreens, and in the event HOBC elects to accept such terms, any such new or
additional purchase arrangement shall be pursuant to the terms of this Agreement
as amended to reflect the new terms applicable to the production and sale of the
new or additional TRUFFELINOS or TRUFFELINOS LITE Products. Further, such new or
additional chocolates and/or low-carbohydrate/no-sugar-added chocolates shall be
included in the definition of Products for purposes of this Agreement, including
but not limited to the minimum purchase requirements set forth in Paragraph 2.
In the event that HOBC elects not to exercise its right of first refusal,
Walgreens shall be free to pursue production of such chocolates and/or
low-carbohydrate/no-sugar-added chocolates on the same or more favorable terms
as those offered to HOBC. HOBC refusal to exercise its right of first refusal in
connection with an offer to replace the TRUFFELINOS or TRUFFELINOS LITE Products
or add any new TRUFFELINOS or TRUFFELINOS LITE chocolates and/or
low-carbohydrate/no-sugar-added chocolates shall not in any way effect
Walgreens' ownership of the TRUFFELINOS and TRUFFELINOS LITE
trademarks.

 

3. 
Applicable HOBC Trademark Representations and Warranties. HOBC represents
and warrants to Walgreens that, to the best of its knowledge, as of the
Effective Date: (i) HOBC is the sole owner of all right, title and interest in
and to the Trademarks, and that it has made no other use of the TRUFFELINOS name
other than in connection with Trademarks that are assigned to Walgreens pursuant
to this Agreement; (ii) such Trademarks are free and clear of any legitimate
liens or encumbrances; (iii) HOBC is not aware of any claim alleging that the
Trademarks infringe or otherwise violate the rights of any other party; (iv)
HOBC has the legal right, authority and ability to transfer the Trademarks to
Walgreens as described in this Agreement; and (v) the Trademark transfer and
assignment transactions contemplated herein will effectively transfer all right,
title and interest in the Trademarks, and any goodwill associated therewith, to
Walgreens.

 

4. 
Term and Termination.

 

(a) This
Agreement shall commence as of the Effective Date and shall end on the second
anniversary of the Effective Date.

 

(b) This
Agreement may be earlier terminated as follows:

 

(i) By
either party, upon not less that 30 days prior written notice if the other party
materially breaches any non-payment obligation under this Agreement and fails to
cure such breach within said thirty day period; provided, however, that in the
event HOBC fails to have sufficient production to fill Walgreens' purchase
orders on three (3) or more occasions during any given 12-month period during
the term hereof, HOBC shall forfeit its right to cure, as provided
above;

 

(ii) By
Walgreens, upon 30 days prior written notice to HOBC, in the event that HOBC
files, or has filed against it (and not dismissed within 30 days) a petition in
bankruptcy, makes a general assignment for the benefit of creditors, or files a
petition or an answer with a court of law seeking or consenting to any
reorganization, arrangement, adjustment, composition, liquidation, dissolution
or similar relief under any law or regulation, or files an answer admitting or
not contesting the material allegations of a petition or other pleading filed
against it for or proposing any such relief.

 

Upon
expiration or termination of this Agreement for any reason, other than a breach
by Walgreens, which is not cured as provided herein, all right, title and
interest in and to the Trademarks shall be permanently vested in Walgreens and
no action shall be taken by HOBC adverse to such ownership
interest.

 

(d) In
the event this Agreement is terminated due to the breach hereof by Walgreens,
which is not cured as provided in subparagraph 4(b)(i) above, all right, tide
and interest in and to the Trademarks shall immediately revert to HOBC, and any
costs associated with the transfer of the Trademarks back to HOBC shall be paid
by Walgreens.

1

 

5. 
Product Representations, Indemnification and Insurance.

 

(a)  HOBC
represent; and warrants to Walgreens that (i) all Products sold to Walgreens
pursuant to this Agreement and the Product containers and packaging therefor
shall be free from defects in design and/or manufacture, and shall comply with
any and all applicable federal, state and local laws; and (ii) the Trademarks,
Product containers and Product packaging or any portions thereof do not infringe
or otherwise violate the rights of any other party, and that it is not aware of
any claim that the Trademarks, Product containers or Product packaging or any
portion thereof infringe or otherwise violate the rights of any other
party.

 

(b)  HOBC
shall indemnify and hold Walgreens harmless from any and all claims, causes of
action and other proceedings, including but not limited to any and all loss,
cost, damage and expense, including but not limited to reasonable attorneys'
fees, incurred in connection therewith ("Claims"), which result from (i) the
acts or omissions of H0BC, its employees, agents and subcontractors, and (ii)
any breach of this Agreement by HOBC, its employees, agents or subcontractors,
including but not limited to any Claim that death personal injury or property
damage was caused by the condition of the Products, Product containers and/or
Product packaging, or that any of the materials provided by HOBC infringe or
otherwise violate the rights of another party.

 

(c)  During
the term of this Agreement, HOBC shall maintain a comprehensive,
occurrence-based general liability policy from an insurance company reasonably
acceptable to Walgreens, with limits of liability equal to or greater than Ten
Million U.S. Dollars (SUS10,000,000). Walgreens shall be named as an additional
insured on such policy and HOBC shall deliver to Walgreens, concurrent with the
execution of this Agreement, a certificate of insurance in compliance herewith.
Said policy shall not contain any provision that restricts or otherwise limits
Walgreens' recovery thereunder, nor shall it be canceled or otherwise modified
without prior notice to and the written consent of Walgreens. HOBC duty to
defend and/or indemnify Walgreens shall not be limited by the terms of any such
insurance policy.

 

(d)   
HOBC shall reimburse Walgreens for any and all attorneys' fees and litigation
expenses it incurs in defending itself against any Claim, or if Walgreens so
requests, HOBC, shall, at its sole expense, retain legal counsel reasonably
acceptable to Walgreens to defend Walgreens, its directors, officers, employees
and agents against any such Claims; provided, however, that in the event HOBC
and/or its retained counsel fail to promptly provide such defense, or, having
commenced such defense, fail to diligently proceed with such defense in a manner
that is reasonably satisfactory to Walgreens, Walgreens shall have the right to
assume the defense of any such matter through legal counsel of its own choosing.
In such case, HOBC shall remain liable for Walgreens' reasonable attorneys' fees
and litigation expenses, as provided herein. Further, in the event HOBC does
provide Walgreens' defense, neither HOBC nor its retained counsel shall enter
into any settlement agreement or agree to the entry of any judgment or decree
that requires Walgreens to take or refrain from taking any specific action,
admit liability or pay any amount of money out of its own resources without
Walgreens' prior written consent.

 

(e)   
Walgreens shall indemnify and hold HOBC harmless from any and all Claims, which
result solely from (i) the acts or omissions of Walgreens, its employees and
agents, including but not limited to any Claim that any trademarks (other than
the TRUFFELINO and TRUFFELINO LITE trademarks), trade dress, or other artwork or
designs created by Walgreens for the Products and/or Product packaging infringe
or otherwise violate the rights of another party, or (ii) any breach of this
Agreement by Walgreens, its employees, agents or subcontractors. Walgreens shall
reimburse HOBC for any and all reasonable attorneys' fees and litigation
expenses it incurs in defending itself against any Claim, or if HOBC so
requests, Walgreens, shall, at its sole expense, retain legal counsel reasonably
acceptable to HOBC to defend HOBC, its directors, officers, employees and agents
against any such Claims; provided, however, that in the event Walgreens and/or
its retained counsel fail to promptly provide such defense, or. having commenced
such defense, fail to diligently proceed with such defense in a manner that is
reasonably satisfactory to HOBC, HOBC shall have the right to assume the defense
of any such matter through legal counsel of its own choosing. In such case,
Walgreens shall remain liable for HOBC's reasonable attorneys' fees and
litigation expenses, as provided herein. Further, in the event Walgreens does
provide HOBC's defense, neither Walgreens nor its retained counsel shall enter
into any settlement agreement or agree to the entry of any judgment or decree
that requires HOBC to take or refrain from taking any specific action, admit
liability or pay any amount of money out of its own resources without HOBC's
prior written consent.

 

6.
Entire Agreement and Modification. This Agreement constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior and/or contemporaneous communications or agreements
with regard to the subject matter hereof, including without limitation any terms
and conditions which may be contained on Walgreens' standard purchase order or
other documentation. This Agreement may not be modified except in a writing
executed by the parties hereto.

 

7.
Assignment. Neither parry shall assign or transfer the whole or any part of
this Agreement to any other person, firm, company or entity without obtaining
the prior written consent of the other party hereto. Notwithstanding the
assignment restriction referenced herein, Walgreens may assign this Agreement to
one of its wholly owned subsidiaries, or to a sister company or affiliate
without obtaining HOBC prior consent.

 

8. No
Implied Waivers. The failure of one party hereto at any time to require
performance by the other of any provision hereof shall, in no way, affect such
party's right to require full performance thereof at any time thereafter; nor
shall the waiver by one party hereto of a breach of any provision hereof, be
taken or held to be a waiver by such party of any succeeding breach of such
provision or as a waiver of the provision itself. To be effective, any waiver of
rights, remedies or obligations hereunder must be in writing, singed by the
waiving party.

	
      House
      of Brussels Chocolates
	
      Walgreen
      Co.

	
      750
      Terminal Ave.
	
      200
      Wilmot Road

	
      Suite
      208
	
      Deerfield,
      IL 60015

	
      Vancouver,
      British Columbia
	
      Attn:
      Vice President - Purchasing

	
      Canada
      V6A 2M5
	 
	 	 
	
      Facsimile:
	
      Facsimile:

	 	 
	
      e-mail:
	
      e-mail;

	 	 
	
      With
      a copy to:
	
      With
      a copy to:

	 	 
	 	 
	 	Divisional
      Vice President - Law 
	 	Walgreen
      Co.
	 	(same
      address)

 

or to
other such recipients, addresses or numbers as either party shall direct by
written notice to the other party in the manner provided above. The date of
giving any notice shall be the date of delivery, if by hand, telex or facsimile,
the date following mailing, if sent by recognized overnight courier service, or
if sent by regular U.S. mail, on the third business day after deposited in the
mail.

 

10.   
Governing Law. This agreement shall be construed in accordance with and
governed by, the laws of the state of Illinois (excluding the principles of
conflicts of laws). Any action to interpret or enforce the provisions of this
Agreement shall only be brought in state or federal court located in Cook or
Lake Counties in Illinois, and the parties hereby consent to the jurisdiction of
said courts and agree not to raise any objection to such jurisdiction or
venue.

 

11.   
The Headings. The headings appearing in this Agreement are inserted for
convenience of reference only and shall not form a part hereof.

 

12.   
Force Majeure. Neither party shall be liable or responsible for any delays,
damages or failure to perform any of the terms or provisions of this Agreement
arising from causes reasonably beyond its control, including but not limited to,
unforeseen unpreventable acts of God or public enemies, acts of civil or
military authority, labor disputes, fires, riots, wars or conditions or war,
acts of terrorists, embargoes, accidents, epidemics, floods or other unusually
severe weather, closing or obstructing of highways, bridges or ferries, shortage
of raw materials or power, or breakdown or other failure of equipment which have
a material, substantial and adverse effect on such party's ability to perform
pursuant to the terms of this Agreement; provided, however, that if such event
of force majeure prevents a party from performing nay of its obligations
hereunder for a period exceeding thirty (30) days, the other parry shall have
the right to terminate this Agreement, effective upon the provision of notice to
the non-performing party.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their duly authorized representatives in duplicate, each duplicate to be
considered an original and each party to retain one duplicate, as of the day and
year first above written.

 

	
      House
      of Brussels Chocolate, Inc
	
      Walgreen
      Co.
	 
	 	 	 
	 	 	 
	
       

      By:
      /s/ Grant Peterson
	
       

      By:
      /s/ Robert Kral
	 
	
      

    	
      

    	 
	
       

      Name:
      Grant Peterson
	
       

      Name:
      Robert Kral
	 
	
      

    	
      

    	 
	
       

      Title:
      CEO, President
	
       

      Title:
      VP Purchasing
	 
	
      

    	
      

    	 

   

2

 

EXHIBIT A

	
      Mark
	
      Registration
      No,
	 	
      Registration
      Date 

	 	 	 	 
	
      TRUFFELINOS
	
      1,499,825
	 	
      August
      9, 1988

	 	 	 	 
	
      Mark
	
      Serial
      Number
	 	
      Application
      Date

	 	 	 	 
	
      TRUFFELINOS
      LITE
	
      78/355,115
	 	
      January
      21,2004

3

 

EXHIBIT B

 

ASSIGNMENT OF TRADEMARKS

 

WHEREAS, House of Brussels Chocolates, Inc., a Nevada corporation,
having a place of business at 750 Terminal Avenue, Suite 208, Vancouver, British
Columbia, Canada V6A 2M5 ("Assignor"), is the sole and exclusive owner of the
trademarks TRUFFELINOS and TRUFFELINOS LITE, as described on Schedule I attached
hereto and made a part hereof; and

 

WHEREAS, WALGREEN CO., an Illinois Corporation, having a place of
business at 200 Wilmot Road, Deerfield, Illinois 60015 ("Assignee"), desires to
acquire the entire right, title and interest in, to and under the said marks and
the registrations and applications thereof:

 

NOW, THEREFORE, for and in consideration of the sum of Ten Dollars
($10.00), to it in hand paid by said Assignee, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
said Assignor sells, assigns, transfers and sets over to said Assignee, all its
right, title and interest in, to and under the said marks, together with the
goodwill of the business symbolized by the marks, and the registrations and
applications thereof, subject to the terms and conditions of the parties
agreement dated 2004.

IN TESTIMONY WHEREOF, Assignor has executed this assignment by
its

 

duly authorized officer this 10th day of May, 2004.

 

	 	
      Assignor:

	 	 
	 	
      House
      of Brussels Chocolates, Inc.

	 	 
	 	 
	 	
      By:
      /s/ Grant Petterson

	 	
      Name:
      Grant Peterson

	 	
      Title:
      President, CEO

4

 

CERTIFICATE OF ACKNOWLEDGEMENT

 

On this 10th day of May, 2004, before me appeared Grant Peterson, the
person who signed the foregoing instrument, who acknowledged that he executed
the above assignment as a free act on behalf of the Assignor identified therein,
with authority to do so.

 

	
      /s/
      Ted Hified
	 	 
	
      Notary
      Public
	 	 

 

	
       

      Subscribed
      and sworn to 
	 
	
      before
      me this 10th day of

	
      May,
      2004.

	
       

      My
      commission expires: Non Expiring

5

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