Document:

Exhibit 4.6

HOUSE
OF BRUSSELS CHOCOLATES INC. AND CERTAIN OF ITS
SUBSIDIARIES

MASTER
SECURITY AGREEMENT

	
      To:
	
      Laurus
      Master Fund, Ltd.

	 	
      c/o
      M&C Corporate Services Limited

	 	
      P.O.
      Box 309 GT

	 	
      Ugland
      House

	 	
      South
      Church Street

	 	
      George
      Town

	 	
      Grand
      Cayman, Cayman Islands

Date:
March 29, 2005

To Whom
It May Concern:

1.  Defined
Terms:

 Any
reference herein to “Collateral” shall, unless the context otherwise requires,
be deemed a reference to “Collateral or any part thereof”. The term “Proceeds”,
whenever used herein shall, by way of example, include trade-ins, equipment,
money, bank accounts, notes, chattel paper, goods, contracts rights, accounts
and any other personal property or obligation received when such Collateral or
Proceeds are sold, exchanged, collected or otherwise disposed of or dealt
with.

2.  To secure
the payment of all Obligations (as hereafter defined), House of Brussels
Chocolates Inc., a Nevada corporation (the “Company”), each of the other
undersigned parties (other than Laurus Master Fund, Ltd., “Laurus”) and each
other entity that is required to enter into this Master Security Agreement (each
an “Assignor” and, collectively, the “Assignors”) hereby assigns and grants to
Laurus a continuing security interest in all of the following property now owned
or at any time hereafter acquired by such Assignor, or in which such Assignor
now has or at any time in the future may acquire any right, title or interest
(the “Collateral”): all cash, cash equivalents, accounts, accounts receivable,
deposit accounts, inventory, equipment, goods, documents of title, instruments
(including, without limitation, promissory notes), contract rights, general
intangibles (including, without limitation, payment intangibles and an absolute
right to license on terms no less favorable than those current in effect among
such Assignor’s affiliates), chattel paper, supporting obligations, investment
property (including, without limitation, all equity interests owned by any
Assignor), letter-of-credit rights, trademarks, trademark applications,
tradestyles, patents, patent applications, copyrights, copyright applications
and other intellectual property in which such Assignor now has or hereafter may
acquire any right, title or interest, all Proceeds and products thereof
(including, without limitation, proceeds of insurance) and all additions,
accessions and substitutions thereto or therefore. In the event any Assignor
wishes to finance an acquisition in the ordinary course of business of any
hereafter acquired equipment and has obtained a written commitment from an
unrelated third party financing source to finance such equipment, Laurus shall
release its security interest on such hereafter acquired equipment so financed
by such third party financing source. Except as otherwise defined herein, all
capitalized terms used herein shall have the meanings provided such terms in the
Securities Purchase Agreement referred to below and the Security Agreement
referred to below, as applicable.

 

3.  The term
“Obligations” as used herein shall mean and include all debts, liabilities and
obligations owing by each Assignor to Laurus arising under, out of, or in
connection with: (i) that certain Securities Purchase Agreement dated as of the
date hereof by and between the Company and Laurus (the “Securities Purchase
Agreement”) and (ii) the Related Agreements referred to in the Securities
Purchase Agreement, (iii) that certain Security Agreement dated as of the date
hereof by and among the Company, certain Subsidiaries of the Company and Laurus
(the “Security Agreement”) and (iv) the Ancillary Agreements referred to in the
Security Agreement (the Securities Purchase Agreement and each Related Agreement
and the Security Agreement and each Ancillary Agreement, as each may be amended,
modified, restated or supplemented from time to time, collectively, the
“Documents”), and in connection with any documents, instruments or agreements
relating to or executed in connection with the Documents or any documents,
instruments or agreements referred to therein or otherwise, and in connection
with any other indebtedness, obligations or liabilities of each such Assignor to
Laurus, whether now existing or hereafter arising, direct or indirect,
liquidated or unliquidated, absolute or contingent, due or not due and whether
under, pursuant to or evidenced by a note, agreement, guaranty, instrument or
otherwise, including, without limitation, obligations and indebtedness of each
Assignor for post-petition interest, fees, costs and charges that accrue after
the commencement of any case by or against such Assignor under any bankruptcy,
insolvency, reorganization or like proceeding (collectively, the “Debtor Relief
Laws”) in each case, irrespective of the genuineness, validity, regularity or
enforceability of such Obligations, or of any instrument evidencing any of the
Obligations or of any collateral therefor or of the existence or extent of such
collateral, and irrespective of the allowability, allowance or disallowance of
any or all of the Obligations in any case commenced by or against any Assignor
under any Debtor Relief Law.

4.  The
Assignors acknowledge and agree that: (i) value has been given, or will be given
upon the making of payment under the Documents by Laurus; (ii) the Assignors
have rights in Collateral; and (iii) the Assignors and Laurus have not agreed to
postpone the time for attachment of the security interest granted hereunder
which shall attach upon the execution of this Master Security Agreement and, in
the case of Collateral acquired after the date hereof, when such Assignor has
rights therein.

5.  Each
Assignor hereby jointly and severally represents, warrants and covenants to
Laurus that:

		(a)	
      Except
      as set forth on Schedule 5(a) it is a corporation, partnership or limited
      liability company, as the case may be, validly existing, in good standing
      and formed under the respective laws of its jurisdiction of formation set
      forth on Schedule A, and each Assignor will provide Laurus thirty (30)
      days’ prior written notice of any change in any of its respective
      jurisdiction of formation;

		(b)	
      its
      legal name is as set forth in its respective Certificate of Incorporation
      or other organizational document (as applicable) as amended through the
      date hereof and as set forth on Schedule A, and it will provide Laurus
      thirty (30) days’ prior written notice of any change in its legal
      name;

 

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	(c)	
      its
      organizational corporate identification number (if applicable) is as set
      forth on Schedule A hereto, and it will provide Laurus thirty (30) days’
      prior written notice of any change in its organizational identification
      number;

		(d)	
      it
      is the lawful owner of its respective Collateral and it has the sole right
      to grant a security interest therein and will defend the Collateral
      against all claims and demands of all persons and
  entities;

		(e)	
      it
      will keep its respective Collateral free and clear of all attachments,
      levies, taxes, liens, security interests and encumbrances of every kind
      and nature (“Encumbrances”), except (i) Encumbrances securing the
      Obligations and (ii) Encumbrances securing indebtedness of each such
      Assignor not to exceed $100,000 in the aggregate for all such Assignors so
      long as all such Encumbrances are removed or otherwise released to Laurus’
      satisfaction within ten (10) days of the creation thereof and (iii)
      Encumbrances set forth on each of Schedule 4.9 of the Securities Purchase
      Agreement and Schedule __ of the Security
Agreement;

		(f)	
      it
      will, at its and the other Assignors’ joint and several cost and expense
      keep the Collateral in good state of repair (ordinary wear and tear
      excepted) and will not waste or destroy the same or any part thereof other
      than ordinary course discarding of items no longer used or useful in its
      or such other Assignors’ business;

		(g)	
      it
      will not, without Laurus’ prior written consent, sell, exchange, lease or
      otherwise dispose of any Collateral, whether by sale, lease or otherwise,
      except for the sale of inventory in the ordinary course of business and
      for the disposition or transfer in the ordinary course of business during
      any fiscal year of obsolete and worn-out equipment or equipment no longer
      necessary for its ongoing needs, having an aggregate fair market value of
      not more than $50,000 and only to the extent
that:

		(i)	
      the
      Proceeds of any such disposition are used to acquire replacement
      Collateral which is subject to Laurus’ first priority perfected security
      interest, or are used to repay the Obligations or to pay general corporate
      expenses; or

		(ii)	
      following
      the occurrence of an Event of Default which continues to exist the
      proceeds of which are remitted to Laurus to be held as cash collateral for
      the Obligations;

		(h)	
      it
      will insure or cause the Collateral to be insured against loss or damage
      by fire, theft, burglary, pilferage, loss in transit and such other
      hazards as Laurus shall specify in amounts and under policies by insurers
      acceptable to Laurus. Laurus shall, as applicable, be named as loss payee
      and/or additional insured as its interest may appear in all of the
      Assignors’ policies or insurance. Each insurance policy shall include an
      endorsement whereby the insurers agree to give Laurus not less than thirty
      (30) days notice of the cancellation of the policy of insurance and permit
      Laurus to cure any default which may exist under the policy. All premiums
      on each Assignor’s insurance policies shall be paid by such Assignor and
      the policies shall be delivered to Laurus. If any such Assignor fails to
      do so, Laurus may procure such insurance and the cost thereof shall be
      promptly reimbursed by the Assignors, jointly and severally, and shall
      constitute Obligations;

 

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		(i)	
      it
      will at all reasonable times allow Laurus or Laurus’ representatives free
      access to and the right of inspection of the Collateral;
    and

		(j)	
      such
      Assignor (jointly and severally with each other Assignor) hereby
      indemnifies and saves Laurus harmless from all loss, costs, damage,
      liability and/or expense, including reasonable legal fees, that Laurus may
      sustain or incur to enforce payment, performance or fulfillment of any of
      the Obligations and/or in the enforcement of this Master Security
      Agreement or in the prosecution or defense of any action or proceeding
      either against Laurus or any Assignor concerning any matter growing out of
      or in connection with this Master Security Agreement, and/or any of the
      Obligations and/or any of the Collateral except to the extent caused by
      Laurus’ own gross negligence or willful misconduct (as determined by a
      court of competent jurisdiction in a final and nonappealable
      decision).

6.  The
occurrence of any of the following events or conditions shall constitute an
“Event of Default” under this Master Security Agreement:

		(a)	
      any
      covenant or any other term or condition of this Master Security Agreement
      is breached in any material respect and such breach, if subject to cure,
      shall continues for a period of fifteen (15) days after the occurrence
      thereof;

		(b)	
      any
      representation or warranty, or statement made or furnished to Laurus under
      this Master Security Agreement by any Assignor or on any Assignor’s behalf
      should at any time be false or misleading in any material
      respect;

		(c)	
      the
      loss, theft, substantial damage, destruction, sale or encumbrance to or of
      any of the Collateral or the making of any levy, seizure or attachment
      thereof or thereon except to the extent:

		(i)	
      such
      loss is covered by insurance proceeds which are used to replace the item
      or repay Laurus; or

		(ii)	
      said
      levy, seizure or attachment does not secure indebtedness in excess of
      $100,000 in the aggregate for all Assignors and such levy, seizure or
      attachment has been removed or otherwise released within ten (10) days of
      the creation or the assertion thereof;

		(d)	
      any
      Assignor shall become insolvent, cease operations, dissolve, terminate its
      business existence, make an assignment for the benefit of creditors,
      suffer the appointment of an interim receiver, receiver, receiver and
      manager, trustee, liquidator or custodian of all or any part of Assignors’
      property’;

 

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		(e)	
      any
      proceedings under any bankruptcy or insolvency law shall be commenced by
      or against any Assignor;

		(f)	
      any
      Assignor shall repudiate, purport to revoke or fail to perform any or all
      of its obligations under any Document (after passage of applicable cure
      period, if any); or

		(g)	
      an
      Event of Default shall have occurred under and as defined in any
      Document.

7.  Upon the
occurrence of any Event of Default and at any time thereafter, Laurus may
declare all Obligations immediately due and payable . Both before and after the
occurrence of an Event of Default, Laurus shall have all rights and remedies of
a secured party under the Personal Property Security Act (Ontario) (as amended
from time to time, which Act, including amendments thereto and any Act
substituted therefore and amendment thereto, is herein referred to as the
“PPSA”), the Uniform Commercial Code as in effect in the State of New York, this
Agreement and other applicable law. Upon the occurrence of any Event of Default
and at any time thereafter, Laurus will have the right to take possession of,
collect, demand, sue on, enforce, recover and receive the Collateral and give
valid and binding receipts and discharges therefore and in respect thereof.
Laurus will also have the right to maintain possession of the Collateral on any
Assignor’s premises or to remove the Collateral or any part thereof to such
other premises as Laurus may desire. Upon Laurus’ request, each of the Assignors
shall assemble or cause the Collateral to be assembled and make it available to
Laurus at a place designated by Laurus. If any notification of intended
disposition of any Collateral is required by law, such notification, if mailed,
shall be deemed commercially reasonable if mailed at least ten (10) days before
such disposition, by certified or registered mail, postage prepaid, addressed to
any Assignor either at such Assignor’s address shown herein or at any address
appearing on Laurus’ records for such Assignor. Any proceeds of any disposition
of any of the Collateral shall be applied by Laurus to the payment of all
expenses in connection with the sale of the Collateral, including operating any
Assignor’s accounts, preparing and enforcing this Agreement, taking and
maintaining custody of, preserving, repairing, possessing, preparing for
disposition and disposing of Collateral and in enforcing or collecting
indebtedness and all such costs, charges and expenses, including reasonable
legal fees, expenses and disbursements and any balance of such proceeds may be
applied by Laurus toward the payment of the Obligations in such order of
application as Laurus may elect, and each Assignor shall be liable for any
deficiency. For the avoidance of doubt, following the occurrence and during the
continuance of an Event of Default, Laurus shall have the immediate right to
withdraw any and all monies contained in any deposit accounts in the name of any
Assignor and controlled by Laurus and apply same to the repayment of the
Obligations (in such order of application as Laurus may elect).

8.  Upon the
occurrence of and during the continuance of any Event of Default, Laurus may
appoint or reappoint by instrument in writing, any person or persons, whether an
officer or officers or an employee or employees of Laurus or not, to be an
interim receiver, receiver or receivers (hereinafter called a “Receiver”, which
term when used herein shall include a receiver and manager) of any Collateral of
House of Brussels Holdings Ltd., Brussels Chocolates Ltd. and any other Assignor
that is organized under a province of Canada and becomes an Assignor pursuant to
Section 19 (collectively, the “Canadian Companies”) (including any interest,
income or profits therefrom) and may remove any Receiver so appointed and
appoint another in his/her/its stead. Any such Receiver shall, so far as
concerns responsibility for his/her/its acts, be deemed the agent of each
Canadian Company and not Laurus, and Laurus shall not be in any way responsible
for any misconduct, negligence or non-feasance on the part of any such Receiver
or his/her/its servants, agents or employees. Subject to the provisions of the
instrument appointing him/her/it, any such Receiver shall have power to take
possession of Collateral, to preserve Collateral or its value, to carry on or
concur in carrying on all or any part of the business of each Canadian Company
and to sell, lease, license or otherwise dispose of or concur in selling,
leasing, licensing or otherwise disposing of Collateral. To facilitate the
foregoing powers, any such Receiver may, to the exclusion of all others,
including any Canadian Company, enter upon, use and occupy all premises owned or
occupied by each Canadian Company wherein Collateral may be situate, maintain
Collateral upon such premises, borrow money on a secured or unsecured basis and
use Collateral directly in carrying on each Canadian Company’s business or as
security for loans or advances to enable the Receiver to carry on each Canadian
Company’s business or otherwise, as such Receiver shall, in its discretion,
determine. Except as may be otherwise directed by Laurus, all money received
from time to time by such Receiver in carrying out his/her/its appointment shall
be received in trust for and be paid over to Laurus. Every such Receiver may, in
the discretion of Laurus, be vested with all or any of the rights and powers of
Laurus. 

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	9.	
      Upon
      and during the continuance of any Event of Default, Laurus may, either
      directly or through its agents or nominees, exercise any or all of the
      powers and rights given to a Receiver by virtue of Section
    8.

10.  Laurus
shall use reasonable care with respect to the Collateral in its possession or
under its control. Laurus shall not have any other duty as to any collateral in
its possession or control or in the possession or control of any agent or
nominee of Laurus, or any income thereon or as to the preservation of rights
against prior parties or any other rights pertaining thereto.

11.  If, for
the purpose of obtaining or enforcing judgment against any Company in any court
in any jurisdiction, it becomes necessary to convert into any other currency
(such other currency being hereinafter in this section referred to as the
“Judgment Currency”) an amount due under any Document in any currency (the
“Obligation Currency”) other than the Judgment Currency, the conversion shall be
made at the rate of exchange prevailing on the business day immediately
preceding (a) the date of actual payment of the amount due, in the case of any
proceeding in the courts of New York or in the courts of any other jurisdiction
that will give effect to such conversion being made on such date, or (b) the
date on which the foreign court determines, in the case of any proceeding in the
courts of any other jurisdiction (the applicable date as of which such
conversion is made pursuant to this section being hereinafter in this section
referred to as the “Judgment Conversion Date”).

If, in
the case of any proceeding in the court of any jurisdiction referred to in the
preceding paragraph, there is a change in the rate of exchange prevailing
between the Judgment Conversion Date and the date of actual receipt of the
amount due in immediately available funds, such Company shall pay such
additional amount (if any, but in any event not a lesser amount) as may be
necessary to ensure that the amount actually received in the Judgment Currency,
when converted at the rate of exchange prevailing on the date of payment, will
produce the amount of the Obligation Currency which could have been purchased
with the amount of the Judgment Currency stipulated in the judgment or judicial
order at the rate of exchange prevailing on the Judgment Conversion Date. Any
amount due from any such Company under this section shall be due as a separate
debt and shall not be affected by judgment being obtained for any other amounts
due under or in respect of any Document.

 

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12.  If any
Assignor defaults in the performance or fulfillment of any of the terms,
conditions, promises, covenants, provisions or warranties on such Assignor’s
part to be performed or fulfilled under or pursuant to this Master Security
Agreement, Laurus may, at its option without waiving its right to enforce this
Master Security Agreement according to its terms, immediately or at any time
thereafter and without notice to any Assignor, perform or fulfill the same or
cause the performance or fulfillment of the same for each Assignor’s joint and
several account and at each Assignor’s joint and several cost and expense, and
the cost and expense thereof (including reasonable legal fees) shall be added to
the Obligations and shall be payable on demand with interest thereon at the
highest rate permitted by law, or, at Laurus’ option, debited by Laurus from any
deposit account in the name of any Assignor and controlled by
Laurus.

13.  Each
Assignor appoints Laurus, any of Laurus’ officers, employees or any other person
or entity whom Laurus may designate as such Assignor’s attorney, with power to
execute such documents in each such Assignor’s behalf and to supply any omitted
information and correct patent errors in any documents executed by any Assignor
or on any Assignor’s behalf; to file financing statements against such Assignor
covering the Collateral (and, in connection with the filing of any such
financing statements, describe the Collateral as “all assets and all personal
property, whether now owned and/or hereafter acquired” (or any substantially
similar variation thereof)); to sign such Assignor’s name on public records; and
to do all other things Laurus deem necessary to carry out this Master Security
Agreement. Each Assignor hereby ratifies and approves all acts of the attorney
and neither Laurus nor the attorney will be liable for any acts of commission or
omission, nor for any error of judgment or mistake of fact or law other than
gross negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision). This power being coupled
with an interest, is irrevocable so long as any Obligations remains unpaid.

14.  No delay
or failure on Laurus’ part in exercising any right, privilege or option
hereunder shall operate as a waiver of such or of any other right, privilege,
remedy or option, and no waiver whatever shall be valid unless in writing,
signed by Laurus and then only to the extent therein set forth, and no waiver by
Laurus of any default shall operate as a waiver of any other default or of the
same default on a future occasion. Laurus’ books and records containing entries
with respect to the Obligations shall be admissible in evidence in any action or
proceeding shall be binding upon each Asignor for the purpose of establishing
the items therein set forth. Laurus shall have the right to enforce any one or
more of the remedies available to Laurus, successively, alternately or
concurrently. However, Laurus shall not be liable or accountable for any failure
to exercise its remedies, take possession of, collect, enforce, realize, sell,
lease, license or otherwise dispose of Collateral or to institute any proceeding
for such purposes. Each Assignor agrees to join with Laurus in executing
financing statements or other instruments to the extent required by the Uniform
Commercial Code or the PPSA in form satisfactory to Laurus and in executing such
other documents or instruments as may be required or deemed necessary by Laurus
for purposes of affecting or continuing Laurus’ security interest in the
Collateral.

15.  This
Master Security Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of New York applicable to contracts made
and performed in such state and cannot be terminated orally. All of the rights,
remedies, options, privileges and elections given to Laurus hereunder shall
inure to the benefit of Laurus’ successors and assigns. The term “Laurus” as
herein used shall include Laurus, any parent of Laurus’, any of Laurus’
subsidiaries and any co-subsidiaries of Laurus’ parent, whether now existing or
hereafter created or acquired, and all of the terms, conditions, promises,
covenants, provisions and warranties of this Agreement shall inure to the
benefit of each of the foregoing, and shall bind the representatives, successors
and assigns of each Assignor.

 

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16.  Each
Assignor hereby consents and agrees that the state of federal courts located in
the County of New York, State of New York shall have exclusive jurisdiction to
hear and determine any claims or disputes between Assignor, on the one hand, and
Laurus, on the other hand, pertaining to this Master Security Agreement or to
any matter arising out of or related to this Master Security Agreement,
provided, that Laurus and each Assignor acknowledges that any appeals from those
courts may have to be heard by a court located outside of the County of New
York, State of New York, and further provided, that nothing in this Master
Security Agreement shall be deemed or operate to preclude Laurus from bringing
suit or taking other legal action in any other jurisdiction to collect, the
Obligations, to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Laurus.
Each Assignor expressly submits and consents in advance to such jurisdiction in
any action or suit commenced in any such court, and each Assignor hereby waives
any objection which it may have based upon lack of personal jurisdiction,
improper venue or forum non conveniens. Each
Assignor hereby waives personal service of the summons, complaint and other
process issues in any such action or suit and agrees that service of such
summons, complaint and other process may be made by registered or certified mail
addressed to such assignor at the address set forth on the signature lines
hereto and that service so made shall be deemed completed upon the earlier of
such Assignor’s actual receipt thereof or three (3) days after deposit in the
U.S. mails, proper postage prepaid.

The
parties desire that their disputes be resolved by a judge applying such
applicable laws. Therefore, to achieve the best combination of the benefits of
the judicial system and of arbitration, the parties hereto waive all rights to
trial by jury in any action, suite, or proceeding brought to resolve any
dispute, whether arising in contract, tort, or otherwise between Laurus, and/or
any Assignor arising out of, connected with, related or incidental to the
relationship established between them in connection with this Master Security
Agreement or the transactions related hereto.

17.  Each
Assignor hereby acknowledges receipt of a copy of this Master Security
Agreement.

18.  This
Master Security Agreement may be executed in any number of counterparts which
shall, collectively and separately constitute one agreement. Any signature
delivered by a party by facsimile transmission or by sending a scanned copy by
electronic mail shall be deemed an original signature hereto.

19.  It is
understood and agreed that any person or entity that desires to become an
Assignor hereunder, or is required to execute a counterpart of this Master
Security Agreement after the date hereof pursuant to the requirements of any
Document, shall become an Assignor hereunder by (x) executing a Joinder
Agreement in form and substance satisfactory to Laurus, (y) delivering
supplements to such exhibits and annexes to such Documents as Laurus shall
reasonably request and (z) taking all actions as specified in this Master
Security Agreement as would have been taken by such Assignor had it been an
original party to this Master Security Agreement, in each case with all
documents required above to be delivered to Laurus and with all documents and
actions required above to be taken to the reasonable satisfaction of
Laurus.

 

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20.  All
notices from Laurus to any Assignor shall be sufficiently given if mailed or
delivered to such Assignor’s address set forth below.

Very
truly yours,

	 	
      House
      of Brussels Chocolates Inc.

	 	 
	 	
      By:

	 	
      Name:

	 	
      Title:

	 	
      Address:

	 	 
	 	
      House
      of Brussels Chocolates (USA) Ltd.

	 	 
	 	
      By:

	 	
      Name:

	 	
      Title:

	 	
      Address:

	 	 
	 	
      DeBas
      Chocolate Inc.

	 	 
	 	
      By:

	 	
      Name:

	 	
      Title:

	 	
      Address:

	 	 
	 	
      ChocoMed
      Inc.

	 	 
	 	
      By:

	 	
      Name:

	 	
      Title:

	 	
      Address:

	 	 
	 	
      House
      of Brussels Holdings Ltd.

	 	 
	 	
      By:

	 	
      Name:

	 	
      Title:

	 	
      Address:

 

9

 

	 	
      Brussels
      Chocolates Ltd.

	 	 
	 	
      By:

	 	
      Name:

	 	
      Title:

	 	
      Address:

	 	 
	 	
      ACKNOWLEDGED:

	 	 
	 	LAURUS MASTER
      FUND, LTD.
	 	 
	 	By:
	 	 Name:
	 	 Title:

 

10Exhibit 4.7

 

SHARE
PLEDGE AGREEMENT

 

This
Share Pledge Agreement (this “Agreement”), dated
as of March 29, 2005, among Laurus Master Fund, Ltd. (the “Pledgee”), House
of Brussels Chocolates Inc., a Nevada corporation (the “Company”), and
each of the other undersigned parties (other than the Pledgee) (the Company and
each such other undersigned party, a “Pledgor” and
collectively, the “Pledgors”).

 

BACKGROUND

 

The
Company has entered into a Securities Purchase Agreement, dated as of March 29,
2005 (as amended, modified, restated or supplemented from time to time, the
“Securities
Purchase Agreement”), and a
Security Agreement dated as of March 29. 2005 (as amended, modified, restated or
supplemented from time to time, the “Security
Agreement”),
pursuant to which the Pledgee provides or will provide certain financial
accommodations to the Company and certain subsidiaries of the
Company.

 

In order
to induce the Pledgee to provide or continue to provide the financial
accommodations described in the Securities Purchase Agreement and the Security
Agreement, each Pledgor has agreed to pledge and grant a security interest in
the collateral described herein to the Pledgee on the terms and conditions set
forth herein.

 

NOW,
THEREFORE, in consideration of the premises and for other good and valuable
consideration the receipt of which is hereby acknowledged, the parties hereto
agree as follows:

 

1.    Defined
Terms. All
capitalized terms used herein which are not defined shall have the meanings
given to them in the Securities Purchase Agreement and the Security Agreement,
as applicable.

 

2.    Pledge
and Grant of Security Interest. To
secure the full and punctual payment and performance of (the following clauses
(a) and (b), collectively, the “Indebtedness”) (a)
the obligations under the Securities Purchase Agreement and the Related
Agreements referred to in the Securities Purchase Agreement and the Security
Agreement and the Ancillary Agreements referred to in the Security Agreement
(the Securities Purchase Agreement and such Related Agreements and the Security
Agreement and such Ancillary Agreements, as each may be amended, restated,
modified and/or supplemented from time to time, collectively, the “Documents”) and
(b) all other indebtedness, obligations and liabilities of each Pledgor to the
Pledgee whether now existing or hereafter arising, direct or indirect,
liquidated or unliquidated, absolute or contingent, due or not due and whether
under, pursuant to or evidenced by a note, agreement, guaranty, instrument or
otherwise (in each case, irrespective of the genuineness, validity, regularity
or enforceability of such Indebtedness, or of any instrument evidencing any of
the Indebtedness or of any collateral therefor or of the existence or extent of
such collateral, and irrespective of the allowability, allowance or disallowance
of any or all of such in any case commenced by or against any Pledgor under
Title 11, United States Code, the Bankruptcy and Insolvency Act (Canada) (the
“BIA”) and the Companies’ Creditors Arrangement Act (the “CCAA”) including,
without limitation, obligations or indebtedness of each Pledgor for
post-petition interest, fees, costs and charges that would have accrued or been
added to the Indebtedness but for the commencement of such case), each Pledgor
hereby pledges, assigns, hypothecates, transfers and grants a security interest
to Pledgee in all of the following (the “Collateral”):

 

 

(a)    the
shares set forth on Schedule
“A annexed
hereto and expressly made a part hereof (together with any additional shares or
other equity interests acquired by any Pledgor, the “Pledged
Shares”), the
certificates representing the Pledged Shares and all dividends, cash,
instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of the Pledged Shares;

 

(b)    all
additional shares of any issuer (each, an “Issuer”) of the
Pledged Shares from time to time acquired by any Pledgor in any manner,
including, without limitation, dividends or a distribution in connection with
any increase or reduction of capital, reclassification, merger, amalgamation,
consolidation, sale of assets, combination of shares, stock split, spin-off or
split-off (which shares shall be deemed to be part of the Collateral), and the
certificates representing such additional shares, and all dividends, cash,
instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such shares; and

 

(c)    all
options and rights, whether as an addition to, in substitution of or in exchange
for any Pledged Shares and all dividends, cash, instruments and other property
or proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all such options and rights.

 

3.    Delivery
of Collateral. All
certificates representing or evidencing the Pledged Shares shall be delivered to
and held by or on behalf of Pledgee pursuant hereto and shall be accompanied by
duly executed instruments of transfer or assignment in blank, all in form and
substance satisfactory to Pledgee. Each Pledgor hereby authorizes the Issuer
upon demand by the Pledgee to deliver any certificates, instruments or other
distributions issued in connection with the Collateral directly to the Pledgee,
in each case to be held by the Pledgee, subject to the terms hereof. Upon the
occurrence and during the continuance of an Event of Default (as defined below),
the Pledgee shall have the right, during such time in its discretion and without
notice to the Pledgor, to transfer to or to register in the name of the Pledgee
or any of its nominees any or all of the PledgedShares. In addition, the Pledgee
shall have the right at such time to exchange certificates or instruments
representing or evidencing Pledged Shares for certificates or instruments of
smaller or larger denominations.

 

4.    Representations
and Warranties of each Pledgor. Each
Pledgor jointly and severally represents and warrants to the Pledgee (which
representations and warranties shall be deemed to continue to be made until all
of the Indebtedness has been paid in full and each Document and each agreement
and instrument entered into in connection therewith has been irrevocably
terminated) that:

 

(a)    the
execution, delivery and performance by each Pledgor of this Agreement and the
pledge of the Collateral hereunder do not and will not result in any violation
of any agreement, indenture, instrument, license, judgment, decree, order, law,
statute, ordinance or other governmental rule or regulation applicable to any
Pledgor;

 

-2-

 

(b)    this
Agreement constitutes the legal, valid, and binding obligation of each Pledgor
enforceable against each Pledgor in accordance with its terms except as limited
by applicable bankruptcy, insolvency, reorganization, moratorium or other laws
of general application affecting enforcement of creditor’s rights and general
principals of equity that restrict the availability of equitable or legal
remedies;

 

(c)    (i) all
Pledged Shares owned by each Pledgor is set forth on Schedule
“A hereto
and (ii) each Pledgor is the direct and beneficial owner of all of the Pledged
Shares;

 

(d)    all of
the Pledged Shares have been duly authorized, validly issued and are fully paid
and nonassessable;

 

(e)    no
consent or approval of any person (including any Issuer), corporation,
governmental body, regulatory authority or other entity, is or will be necessary
for (i) the execution, delivery and performance of this Agreement, (ii) the
exercise by the Pledgee of any rights with respect to the Collateral or (iii)
the pledge and assignment of, and the grant of a security interest in, the
Collateral hereunder;

 

(f)    there are
no pending or, to the best of Pledgor’s knowledge, threatened actions or
proceedings before any court, judicial body, administrative agency or arbitrator
which may materially adversely affect the Collateral;

 

(g)    each
Pledgor has the requisite power and authority to enter into this Agreement and
to pledge and assign the Collateral to the Pledgee in accordance with the terms
of this Agreement;

 

(h)    each
Pledgor owns each item of the Collateral and, except for the pledge and security
interest granted to Pledgee hereunder, the Collateral shall be, immediately
following the closing of the transactions contemplated by the Documents, free
and clear of any other security interest, pledge, claim, lien, charge,
hypothecation, assignment, offset or encumbrance whatsoever (collectively,
“Liens”);

 

(i)    there are
no restrictions on transfer of the Pledged Shares contained in the certificate
of incorporation or by-laws (or equivalent organizational documents) of the
Issuer or otherwise which have not otherwise been enforceably and legally waived
by the necessary parties;

 

(j)    none of
the Pledged Shares have been issued or transferred in violation of the
securities registration, securities disclosure or similar laws of any
jurisdiction to which such issuance or transfer may be subject;

 

(k)    the
pledge and assignment of the Collateral and the grant of a security interest
under this Agreement vest in the Pledgee all rights of each Pledgor in the
Collateral as contemplated by this Agreement; and

 

(l)    The
Pledged Shares constitute one hundred percent (100%) of the issued and
outstanding shares of each Issuer.

 

5.    Covenants. Each
Pledgor jointly and severally covenants that, until the Indebtedness shall be
indefeasibly satisfied in full and each Document and each agreement and
instrument entered into in connection therewith is irrevocably
terminated:

 

-3-

 

(a)    No
Pledgor will sell, assign, transfer, convey, or otherwise dispose of its rights
in or to the Collateral or any interest therein; nor will any Pledgor create,
incur or permit to exist any Lien whatsoever with respect to any of the
Collateral or the proceeds thereof other than that created hereby. 

 

(b)    Each
Pledgor will, at its expense, defend Pledgee’s right, title and security
interest in and to the Collateral against the claims of any other
party.

 

(c)    Each
Pledgor shall at any time, and from time to time, upon the written request of
Pledgee, execute and deliver such further documents and do such further acts and
things as Pledgee may reasonably request in order to effectuate the purposes of
this Agreement including, but without limitation, delivering to Pledgee, upon
the occurrence of an Event of Default, irrevocable proxies in respect of the
Collateral in form satisfactory to Pledgee. Until receipt thereof, upon an Event
of Default that has occurred and is continuing beyond any applicable grace
period, this Agreement shall constitute Pledgor’s proxy to Pledgee or its
nominee to vote all shares of Collateral then registered in each Pledgor’s
name.

 

(d)    No
Pledgor will consent to or approve the issuance of (i) any additional shares of
any class of shares or other equity interests of the Issuer; or (ii) any
securities convertible either voluntarily by the holder thereof or automatically
upon the occurrence or nonoccurrence of any event or condition into, or any
securities exchangeable for, any such shares, unless, in either case, such
shares are pledged as Collateral pursuant to this Agreement.

 

6.    Voting
Rights and Dividends. In
addition to the Pledgee’s rights and remedies set forth in Section 9 hereof,
in case an Event of Default shall have occurred and be continuing, beyond any
applicable cure period, the Pledgee shall (i) be entitled to vote the
Collateral, (ii) be entitled to give consents, waivers and ratifications in
respect of the Collateral (each Pledgor hereby irrevocably constituting and
appointing the Pledgee, with full power of substitution, the proxy and
attorney-in-fact of each Pledgor for such purposes) and (iii) be entitled to
collect and receive for its own use cash dividends paid on the Collateral. No
Pledgor shall be permitted to exercise or refrain from exercising any voting
rights or other powers if, in the reasonable judgment of the Pledgee, such
action would have a material adverse effect on the value of the Collateral or
any part thereof; and, provided,
further, that
each Pledgor shall give at least five (5) days’ written notice of the manner in
which such Pledgor intends to exercise, or the reasons for refraining from
exercising, any voting rights or other powers other than with respect to any
election of directors and voting with respect to any incidental matters.
Following the occurrence of an Event of Default, all dividends and all other
distributions in respect of any of the Collateral, shall be delivered to the
Pledgee to hold as Collateral and shall, if received by any Pledgor, be received
in trust for the benefit of the Pledgee, be segregated from the other property
or funds of any other Pledgor, and be forthwith delivered to the Pledgee as
Collateral in the same form as so received (with any necessary
endorsement).

 

7.    Attachment.
Each Pledgor acknowledges and agrees that: (i) value has been given or will be
given upon the making of payment under the Securities Purchase Agreement by
Laurus; (ii) each Pledgor has rights in the Collateral; and (iii) each Pledgor
and Laurus have not agreed to postpone the time for attachment of the security
interest granted hereunder which shall attach upon the execution of this
Agreement and, in the case of Collateral acquired after the date hereof when
such Pledgor has rights therein.

 

-4-

 

8.    Event
of Default. An
Event of Default shall be deemed to have occurred and may be declared by the
Pledgee upon the happening of any of the following events:

 

(a)    An “Event
of Default” under any Document or any agreement or note related to any Document
shall have occurred and be continuing beyond any applicable cure
period;

 

(b)    Any
Pledgor shall default in the performance of any of its obligations under any
agreement between any Pledgor and Pledgee, including, without limitation, this
Agreement, and such default shall not be cured during any applicable cure
period;

 

(c)    Any
representation or warranty of any Pledgor made herein, in any Document or in any
agreement, statement or certificate given in writing pursuant hereto or thereto
or in connection herewith or therewith shall be false or misleading in any
material respect; 

 

(d)    Any
portion of the Collateral is subjected to a levy of execution, attachment,
distraint or other judicial process or any portion of the Collateral is the
subject of a claim (other than by the Pledgee) of a Lien or other right or
interest in or to the Collateral and such levy or claim shall not be cured,
disputed or stayed within a period of fifteen (15) business days after the
occurrence thereof; or

 

(e)    Any
Pledgor shall (i) apply for, consent to, or suffer to exist the appointment of,
or the taking of possession by, a receiver, interim receiver, receiver and
manager, custodian, trustee, liquidator or other fiduciary of itself or of all
or a substantial part of its property, (ii) make a general assignment for the
benefit of creditors, (iii) commence a voluntary case under any state or federal
bankruptcy laws (as now or hereafter in effect), (iv) be adjudicated a bankrupt
or insolvent, (v) file a petition seeking to take advantage of any other law
providing for the relief of debtors, (vi) acquiesce to, or fail to have
dismissed, within sixty (60) days, any petition filed against it in any
involuntary case under such bankruptcy laws, or (vii) take any action for the
purpose of effecting any of the foregoing.

 

9.    Remedies. In case
an Event of Default shall have occurred and been declared by the Pledgee, the
Pledgee may: 

 

(a)    Transfer
any or all of the Collateral into its name, or into the name of its nominee or
nominees;

 

(b)    Exercise
all corporate rights with respect to the Collateral including, without
limitation, all rights of conversion, exchange, subscription or any other
rights, privileges or options pertaining to any shares of the Collateral as if
it were the absolute owner thereof, including, but without limitation, the right
to exchange, at its discretion, any or all of the Collateral upon the merger,
consolidation, amalgamation, reorganization, recapitalization or other
readjustment of the Issuer thereof, or upon the exercise by the Issuer of any
right, privilege or option pertaining to any of the Collateral, and, in
connection therewith, to deposit and deliver any and all of the Collateral with
any committee, depository, transfer agent, registrar or other designated agent
upon such terms and conditions as it may determine, all without liability except
to account for property actually received by it; and

 

-5-

 

(c)    Subject
to any requirement of applicable law, sell, assign and deliver the whole or,
from time to time, any part of the Collateral at the time held by the Pledgee,
at any private sale or at public auction, with or without demand, advertisement
or notice of the time or place of sale or adjournment thereof or otherwise (all
of which are hereby waived, except such notice as is required by applicable law
and cannot be waived), for cash or credit or for other property for immediate or
future delivery, and for such price or prices and on such terms as the Pledgee
in its sole discretion may determine, or as may be required by applicable
law.

 

Each
Pledgor hereby waives and releases any and all right or equity of redemption,
whether before or after sale hereunder. At any such sale, unless prohibited by
applicable law, the Pledgee may bid for and purchase the whole or any part of
the Collateral so sold free from any such right or equity of redemption. All
moneys received by the Pledgee hereunder, whether upon sale of the Collateral or
any part thereof or otherwise, shall be held by the Pledgee and applied by it as
provided in Section 11 hereof.
No failure or delay on the part of the Pledgee in exercising any rights
hereunder shall operate as a waiver of any such rights nor shall any single or
partial exercise of any such rights preclude any other or future exercise
thereof or the exercise of any other rights hereunder. The Pledgee shall have no
duty as to the collection or protection of the Collateral or any income thereon
nor any duty as to preservation of any rights pertaining thereto, except to
apply the funds in accordance with the requirements of Section 11 hereof.
The Pledgee may exercise its rights with respect to property held hereunder
without resort to other security for or sources of reimbursement for the
Indebtedness. In addition to the foregoing, Pledgee shall have all of the
rights, remedies and privileges of a secured party under the Uniform Commercial
Code of New York (the “UCC”) and the Personal Property Secutiy Act (Ontario)(as
amended from time to time, which Act, including amendments thereto and any Act
substituted therefore and amendments thereto is herein referred to as the
“PPSA”), regardless of the jurisdiction in which enforcement hereof is
sought.

 

10.    Private
Sale. Each
Pledgor recognizes that the Pledgee may be unable to effect (or to do so only
after delay which would adversely affect the value that might be realized from
the Collateral) a public sale of all or part of the Collateral by reason of
certain prohibitions contained in the Securities Act of 1933 (the “US Securities
Act”), or the Securities Act (Ontario), and may be compelled to resort to one or
more private sales to a restricted group of purchasers who will be obliged to
agree, among other things, to acquire such Collateral for their own account, for
investment and not with a view to the distribution or resale thereof. Each
Pledgor agrees that any such private sale may be at prices and on terms less
favorable to the seller than if sold at public sales and that such private sales
shall be deemed to have been made in a commercially reasonable manner. Each
Pledgor agrees that the Pledgee has no obligation to delay sale of any
Collateral for the period of time necessary to permit the Issuer to register the
Collateral for public sale under the US Securities Act or the Securities Act
(Ontario).

 

11.    Proceeds
of Sale. The
proceeds of any collection, recovery, receipt, appropriation, realization or
sale of the Collateral shall be applied by the Pledgee as follows:

 

(a) First, to
the payment of all costs, reasonable expenses and charges of the Pledgee and to
the reimbursement of the Pledgee for the prior payment of such costs, reasonable
expenses and charges incurred in connection with the care and safekeeping of the
Collateral (including, without limitation, the reasonable expenses of any sale
or any other disposition of any of the Collateral), attorneys’ fees and
reasonable expenses, court costs, any other fees or expenses incurred or
expenditures or advances made by Pledgee in the protection, enforcement or
exercise of its rights, powers or remedies hereunder;

 

-6-

 

(b)    Second,
to the payment of the Indebtedness, in whole or in part, in such order as the
Pledgee may elect, whether or not such Indebtedness is then due;

 

(c)    Third, to
such persons, firms, corporations or other entities as required by applicable
law including, without limitation, Section 9-615(a)(3) of the
UCC and 64(1) of the PPSA; and

 

(d)    Fourth,
to the extent of any surplus to the Pledgors or as a court of competent
jurisdiction may direct.

 

In the
event that the proceeds of any collection, recovery, receipt, appropriation,
realization or sale are insufficient to satisfy the Indebtedness, each Pledgor
shall be jointly and severally liable for the deficiency plus the costs and fees
of any lawyers employed by Pledgee to collect such deficiency.

 

12.    Waiver
of Marshaling. Each
Pledgor hereby waives any right to compel any marshaling of any of the
Collateral.

 

13.    No
Waiver. Any and
all of the Pledgee’s rights with respect to the Liens granted under this
Agreement shall continue unimpaired, and Pledgor shall be and remain obligated
in accordance with the terms hereof, notwithstanding (a) the bankruptcy,
insolvency or reorganization of any Pledgor, (b) the release or substitution of
any item of the Collateral at any time, or of any rights or interests therein,
or (c) any delay, extension of time, renewal, compromise or other indulgence
granted by the Pledgee in reference to any of the Indebtedness. Each Pledgor
hereby waives all notice of any such delay, extension, release, substitution,
renewal, compromise or other indulgence, and hereby consents to be bound hereby
as fully and effectively as if such Pledgor had expressly agreed thereto in
advance. No delay or extension of time by the Pledgee in exercising any power of
sale, option or other right or remedy hereunder, and no failure by the Pledgee
to give notice or make demand, shall constitute a waiver thereof, or limit,
impair or prejudice the Pledgee’s right to take any action against any Pledgor
or to exercise any other power of sale, option or any other right or
remedy.

 

14.    Expenses. The
Collateral shall secure, and each Pledgor shall pay to Pledgee on demand, from
time to time, all reasonable costs and expenses, (including but not limited to,
reasonable legal fees and costs, taxes, and all transfer, recording, filing and
other charges) of, or incidental to, the custody, care, transfer, administration
of the Collateral or any other collateral, or in any way relating to the
enforcement, protection or preservation of the rights or remedies of the Pledgee
under this Agreement or with respect to any of the Indebtedness.

 

15.    The
Pledgee Appointed Attorney-In-Fact and Performance by the
Pledgee. Upon
the occurrence of an Event of Default, each Pledgor hereby irrevocably
constitutes and appoints the Pledgee as such Pledgor’s true and lawful
attorney-in-fact, with full power of substitution, to execute, acknowledge and
deliver any instruments and to do in such Pledgor’s name, place and stead, all
such acts, things and deeds for and on behalf of and in the name of such
Pledgor, which such Pledgor could or might do or which the Pledgee may deem
necessary, desirable or convenient to accomplish the purposes of this Agreement,
including, without limitation, to execute such instruments of assignment or
transfer or orders and to register, convey or otherwise transfer title to the
Collateral into the Pledgee’s name. Each Pledgor hereby ratifies and confirms
all that said attorney-in-fact may so do and hereby declares this power of
attorney to be coupled with an interest and irrevocable. If any Pledgor fails to
perform any agreement herein contained, the Pledgee may itself perform or cause
performance thereof, and any costs and expenses of the Pledgee incurred in
connection therewith shall be paid by the Pledgors as provided in Section
11
hereof.

 

-7-

 

16.    Waivers. THE
PARTIES HERETO DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF
THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHTS TO
TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN LAURUS, AND/OR ANY
COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED BETWEEN THEN IN CONNECTION WITH THIS AGREEMENT, ANY
OTHER DOCUMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO. 

 

17.    Recapture.
Notwithstanding anything to the contrary in this Agreement, if the Pledgee
receives any payment or payments on account of the Indebtedness, which payment
or payments or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside and/or required to be repaid to a trustee,
receiver, interim receiver, receiver and manager or any other party under the
United States Bankruptcy Code, as amended, the BIA, the CCAA, or any other
federal, provincial or state bankruptcy, reorganization, moratorium or
insolvency law relating to or affecting the enforcement of creditors’ rights
generally, common law or equitable doctrine, then to the extent of any sum not
finally retained by the Pledgee, each Pledgor’s obligations to the Pledgee shall
be reinstated and this Agreement shall remain in full force and effect (or be
reinstated) until payment shall have been made to Pledgee, which payment shall
be due on demand.

 

18.    Captions. All
captions in this Agreement are included herein for convenience of reference only
and shall not constitute part of this Agreement for any other
purpose.

 

19.    Miscellaneous.

 

(a)    This
Agreement constitutes the entire and final agreement among the parties with
respect to the subject matter hereof and may not be changed, terminated or
otherwise varied except by a writing duly executed by the parties
hereto.

 

(b)    No waiver
of any term or condition of this Agreement, whether by delay, omission or
otherwise, shall be effective unless in writing and signed by the party sought
to be charged, and then such waiver shall be effective only in the specific
instance and for the purpose for which given.

 

-8-

 

(c)    In the
event that any provision of this Agreement or the application thereof to any
Pledgor or any circumstance in any jurisdiction governing this Agreement shall,
to any extent, be invalid or unenforceable under any applicable statute,
regulation, or rule of law, such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform to
such statute, regulation or rule of law, and the remainder of this Agreement and
the application of any such invalid or unenforceable provision to parties,
jurisdictions, or circumstances other than to whom or to which it is held
invalid or unenforceable shall not be affected thereby, nor shall same affect
the validity or enforceability of any other provision of this
Agreement.

 

(d)    This
Agreement shall be binding upon each Pledgor, and each Pledgor’s successors and
assigns, and shall inure to the benefit of the Pledgee and its successors and
assigns.

 

(e)    Any
notice or other communication required or permitted pursuant to this Agreement
shall be given in accordance with the Securities Purchase Agreement and/or the
Security Agreement, as applicable. 

 

(f)    This
Agreement and the other Documents shall be governed by and construed and
enforced in accordance with the laws of the State of New York applicable to
contracts made and performed in such State, without regard to principles of
conflicts of law.

 

(g)    EACH
PLEDGOR HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN
THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO
HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY PLEDGOR, ON THE ONE HAND,
AND THE PLEDGEE, ON THE OTHER HAND, PERTAINING TO THIS AGREEMENT OR ANY OF THE
OTHER DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR
ANY OF THE OTHER DOCUMENTS, PROVIDED, THAT EACH PLEDGOR ACKNOWLEDGES THAT ANY
APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE
COUNTY OF NEW YORK, STATE OF NEW YORK; AND FURTHER PROVIDED, THAT NOTHING IN
THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE PLEDGEE FROM BRINGING
SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE
INDEBTEDNESS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
INDEBTEDNESS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
PLEDGEE. EACH PLEDGOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH PLEDGOR
HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL
JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS. EACH PLEDGOR HEREBY WAIVES
PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH
ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER
PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PLEDGOR AT
THE ADDRESS SET FORTH IN THE [THE SECURITIES PURCHASE AGREEMENT] [THE SECURITY
AGREEMENT] AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER
OF THE SUCH PLEDGOR’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN
THE U.S. MAILS, PROPER POSTAGE PREPAID.

 

-9-

 

(h)    It is
understood and agreed that any person or entity that desires to become a Pledgor
hereunder, or is required to execute a counterpart of this Share Pledge
Agreement after the date hereof pursuant to the requirements of any Document,
shall become a Pledgor hereunder by (x) executing a Joinder Agreement in form
and substance satisfactory to the Pledgee, (y) delivering supplements to such
exhibits and annexes to such Documents as the Pledgee shall reasonably request
and (z) taking all actions as specified in this Agreement as would have been
taken by such Pledgor had it been an original party to this Agreement, in each
case with all documents required above to be delivered to the Pledgee and with
all documents and actions required above to be taken to the reasonable
satisfaction of the Pledgee.

 

(i)    This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which when taken together shall constitute one and
the same agreement. Any signature delivered by a party by facsimile transmission
or by sending a scanned copy by electronic mail shall be deemed an original
signature hereto.

 

[Remainder
of Page Intentionally Left Blank]

 

 

-10-

IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and
year first written above.

 

	 	
      HOUSE
      OF BRUSSELS CHOCOLATES INC.

	 	 
	 	
      By:____________________________________

	 	
      Name:

	 	
      Title

	 	 
	 	
      HOUSE
      OF BRUSSELS CHOCOLATES (USA) LTD.

	 	 
	 	
      By:____________________________________

	 	
      Name:

	 	
      Title

	 	 
	 	
      DEBAS
      CHOCOLATE INC.

	 	 
	 	
      By:____________________________________

	 	
      Name:

	 	
      Title

	 	 
	 	
      CHOCOMED,
      INC.

	 	 
	 	
      By:____________________________________

	 	
      Name:

	 	
      Title
      

	 	 
	 	
      HOUSE
      OF BRUSSELS HOLDINGS LTD.

	 	 
	 	
      By:____________________________________

	 	
      Name:

	 	
      Title

	 	 
	 	
      BRUSSELS
      CHOCOLATES LTD.

	 	 
	 	
      By:____________________________________

	 	
      Name:

	 	
      Title

	 	 
	 	
      LAURUS
      MASTER FUND, LTD.

	 	 
	 	
      By:
      :____________________________________

	 	
      Name:

	 	
      Title

 

-11-

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