Document:

Exhibit 10.6

Exhibit 10.6

SUBSIDIARY GUARANTY

	
    New York, New York
	
    April 28, 2004

          FOR VALUE RECEIVED, and in
consideration of note purchases from, loans made or to be made or credit
otherwise extended or to be extended by Laurus Master Fund, Ltd. ("Laurus") to
or for the account of Magic Lantern Group, Inc. ("Debtor") from time to time and
at any time and for other good and valuable consideration and to induce Laurus,
in its discretion, to purchase such notes, make such loans or extensions of
credit and to make or grant such renewals, extensions, releases of collateral or
relinquishments of legal rights as Laurus may deem advisable, each of the
undersigned (and each of them if more than one, the liability under this
Guaranty being joint and several) (jointly and severally referred to as
"Guarantors " or "the undersigned") unconditionally guaranties to Laurus, its
successors, endorsees and assigns the prompt payment when due (whether by
acceleration or otherwise) of all present and future obligations and liabilities
of any and all kinds of Debtor to Laurus and of all instruments of any nature
evidencing or relating to any such obligations and liabilities upon which Debtor
or one or more parties and Debtor is or may become liable to Laurus, whether
incurred by Debtor as maker, endorser, drawer, acceptor, guarantors ,
accommodation party or otherwise, and whether due or to become due, secured or
unsecured, absolute or contingent, joint or several, and however or whenever
acquired by Laurus, whether arising under, out of, or in connection with (i)
that certain Securities Purchase Agreement dated as of the date hereof by and
between the Debtor and Laurus (the "Securities Purchase Agreement") and (ii)
each Related Agreement referred to in the Securities Purchase Agreement,
including, without limitation that certain Master Security Agreement dated as of
the date hereof by and between the Debtor, each of the undersigned and Laurus
(the "Security Agreement") and (iii) each Ancillary Agreement referred to in the
Security Agreement (the Securities Purchase Agreement and each Related
Agreement, the Security Agreement and each Ancillary Agreement, as each may be
amended, modified, restated or supplemented from time to time, are collectively
referred to herein as the "Documents"), or 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, or any
other indebtedness, obligations or liabilities of the Debtor 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 (all of
which are herein collectively referred to as the "Obligations"), and
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 Debtor under Title 11, United
States Code, the Bankruptcy and Insolvency Act (Canada), the Companies'
Creditors Arrangement Act (Canada) (or any similar statute), including, without
limitation, obligations or indebtedness of Debtor for post-petition interest,
fees, costs and charges that would have accrued or been added to the Obligations
but for the commencement of such case whether or not such amounts are allowed or
allowable in whole or in part in any such case. Terms not otherwise defined
herein shall have the meaning assigned such terms in the Securities Purchase
Agreement and the Security Agreement, as applicable. In furtherance of the
foregoing, the undersigned hereby agrees as follows:

          1. No Impairment. Laurus may
at any time and from time to time, either before or after the maturity thereof,
without notice to or further consent of the undersigned, extend the time of
payment of, exchange or surrender any collateral for, renew or extend any of the
Obligations or increase or decrease the interest rate thereon, or any other
agreement with Debtor or with any other party to or person liable on any of the
Obligations, or interested therein, for the extension, renewal, payment,
compromise, discharge or release thereof, in whole or in part, or for any
modification of the terms thereof or of any agreement between Laurus and Debtor
or any such other party or person, or make any election of rights Laurus may
deem desirable under the United States Bankruptcy Code, as amended the
Bankruptcy and Insolvency Act (Canada), as amended, the Companies' Creditors
Arrangement Act (Canada), as amended, or any other similar American or Canadian
federal, state or or provincial bankruptcy, reorganization, moratorium or
insolvency law relating to or affecting the enforcement of creditors' rights
generally (any of the foregoing, an "Insolvency Law") without in any way
impairing or affecting this Guaranty. This instrument shall be effective
regardless of the subsequent incorporation, merger or consolidation of Debtor,
or any change in the composition, nature, personnel or location of Debtor and
shall extend to any successor entity to Debtor, including a debtor in possession
or the like under any Insolvency Law.

          2. Guaranty Absolute.
Subject to Section 6(c), each of the undersigned jointly and severally
guarantees that the Obligations will be paid strictly in accordance with the
terms of the Documents and/or any other document, instrument or agreement
creating or evidencing the Obligations, regardless of any law, regulation or
order now or hereafter in effect in any jurisdiction affecting any of such terms
or the rights of Debtor with respect thereto. Guarantors hereby knowingly accept
the full range of risk encompassed within a contract of "continuing guaranty"
which risk includes the possibility that Debtor will contract additional
indebtedness for which Guarantors may be liable hereunder after Debtor's
financial condition or ability to pay its lawful debts when they fall due has
deteriorated, whether or not Debtor has properly authorized incurring such
additional indebtedness. The undersigned acknowledge that (i) no oral
representations, including any representations to extend credit or provide other
financial accommodations to Debtor, have been made by Laurus to induce the
undersigned to enter into this Guaranty and (ii) any extension of credit to the
Debtor shall be governed solely by the provisions of the Documents. The
liability of each of the undersigned under this Guaranty shall be absolute and
unconditional, in accordance with its terms, and shall remain in full force and
effect without regard to, and shall not be released, suspended, discharged,
terminated or otherwise affected by, any circumstance or occurrence whatsoever,
including, without limitation: (a) any waiver, indulgence, renewal, extension,
amendment or modification of or addition, consent or supplement to or deletion
from or any other action or inaction under or in respect of the Documents or any
other instruments or agreements relating to the Obligations or any assignment or
transfer of any thereof, (b) any lack of validity or enforceability of any
Document or other documents, instruments or agreements relating to the
Obligations or any assignment or transfer of any thereof, (c) any furnishing of
any additional security to Laurus or its assignees or any acceptance thereof or
any release of any security by Laurus or its assignees, (d) any limitation on
any party's liability or obligation under the Documents or any other documents,
instruments or agreements relating to the Obligations or any assignment or
transfer of any thereof or any invalidity or unenforceability, in whole or in
part, of any such document, instrument or agreement or any term thereof, (e) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to Debtor, or any action taken
with respect to this Guaranty by any trustee or receiver, or by any court, in
any such proceeding, whether or not the undersigned shall have notice or
knowledge of any of the  

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foregoing, (f) any exchange, release or nonperfection of
any collateral, or any release, or amendment or waiver of or consent to
departure from any guaranty or security, for all or any of the Obligations or
(g) any other circumstance which might otherwise constitute a defense available
to, or a discharge of, the undersigned. Any amounts due from the undersigned to
Laurus shall bear interest until such amounts are paid in full at the highest
rate permitted by applicable law then applicable to the Obligations. Obligations
include post-petition interest whether or not allowed or allowable.

          3. Payment. 

(a) Payment shall be made to Laurus
at the office of Laurus from time to time on demand as Obligations hereunder
become due. Each of the Guarantors shall make all payments to Laurus on the
Obligations without setoff, counterclaim, restrictions or conditions of any kind
and free and clear of, and without deduction or withholdings for or on account
of, (i) any present or future duties, taxes, levies, imposts, fees, deductions,
assessments, withholdings or other charges of any nature whatsoever or interest,
penalties or other amounts in respect thereof imposed or levied by or on behalf
of the Canadian Government or of any province or territory thereof or any
authority or agency therein or thereof having power to tax (collectively,
"Taxes"); or (ii) any present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies which arise from any payment
made hereunder or from the execution, delivery or registration of, or otherwise
with respect to, this Guaranty or any of the other Documents (collectively,
"Other Taxes") unless such deduction or withholding is required by law or the
administrative practice of any taxation authority.
(b) If any of the Guarantors shall
be required by law to deduct or withhold in respect of any Taxes or Other Taxes
from or in respect of any sum payable hereunder to Laurus, then: 

(i) the sum payable shall be
increased as necessary so that after making all required deductions and
withholdings (including deductions and withholdings applicable to additional
sums payable under this Section) Laurus receives an amount equal to the sum it
would have received had no such deductions or withholdings been made;
(ii) each of the Guarantors shall
make such deductions and withholdings;

(iii) each of the Guarantors shall
pay the full amount deducted or withheld to the relevant taxing authority or
other authority in accordance with applicable law; and

(iv) to the extent not paid to
Laurus pursuant to clause (i) above, Guarantors shall also pay to Laurus, at the
time interest is paid, all additional amounts which Laurus specifies as
necessary to preserve the after-tax yield Laurus would have received if such
Taxes or Other Taxes had not been imposed. 

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(c)  Within thirty (30) days after the
date of any payment by any of the Guarantors of Taxes or Other Taxes, upon
Laurus' request, such guarantor shall furnish to Laurus the original or a
certified copy of a receipt evidencing payment thereof, or other evidence of
payment reasonably satisfactory to Laurus.

(d)  Each of the
Guarantors will indemnify Laurus for the full amount of Taxes and Other Taxes
paid by Laurus. If Laurus receives a refund in respect of any Taxes or Other
Taxes for which Laurus has received payment from any of the Guarantors
hereunder, so long as no Event of Default, or act, condition or event which with
notice or passage of time or both would constitute an Event of Default, shall
exist or have occurred and be continuing, Laurus shall hold for the account of
such Guarantors, as applicable the amount of such refund plus any interest
received (but only to the extent of indemnity payments made, or additional
amounts paid, by any of the Guarantors under this Section with respect to the
Taxes or Other Taxes giving rise to such refund). If Taxes or Other Taxes
were not correctly or legally asserted, Laurus shall, upon request of such
Guarantor, and at its expense, provide such documents to such Guarantor in form
and substance satisfactory to Laurus, as such Guarantor may reasonably request,
to enable the undersigned to contest such Taxes or Other Taxes pursuant to
appropriate proceedings then available to the undersigned (so long as providing
such documents shall not, in good faith determination of Laurus, have a
reasonable likelihood of resulting in any liability of Laurus). The obligations
of the undersigned under this Section shall survive the termination or
revocation of this Guaranty and the Documents and the payment of all amounts
payable under this Guaranty and the Documents.

  

          4. 

Intentionally Omitted.
         
5. 

Waivers.

(a)  This Guaranty is a guaranty of
payment and not of collection. Laurus shall be under no obligation to institute
suit, exercise rights or remedies or take any other action against Debtor or any
other person liable with respect to any of the Obligations or resort to any
collateral security held by it to secure any of the Obligations as a condition
precedent to the undersigned being obligated to perform as agreed herein and
each of the Guarantors hereby waives any and all rights which it may have by
statute or otherwise which would require Laurus to do any of the foregoing. Each
of the Guarantors further consents and agrees that Laurus shall be under no
obligation to marshal any assets in favor of Guarantors, or against or in
payment of any or all of the Obligations. The undersigned hereby waives all
suretyship defenses and any rights to interpose any defense, counterclaim or
offset of any nature and description which the undersigned may have or which may
exist between and among Laurus, Debtor and/or the undersigned with respect to
the undersigned's obligations under this Guaranty, or which Debtor may assert on
the underlying debt, including but not limited to failure of consideration,
breach of warranty, fraud, payment (other than cash payment in full of the
Obligations), statute of frauds, bankruptcy, infancy, statute of limitations,
accord and satisfaction, and usury.
  4

(b)  Each of the undersigned further
waives (i) notice of the acceptance of this Guaranty, of the making of any such
loans or extensions of credit, and of all notices and demands of any kind to
which the undersigned may be entitled, including, without limitation, notice of
adverse change in Debtor's financial condition or of any other fact which might
materially increase the risk of the undersigned and (ii) presentment to or
demand of payment from anyone whomsoever liable upon any of the Obligations,
protest, notices of presentment, non-payment or protest and notice of any sale
of collateral security or any default of any sort.

(c)  Notwithstanding any payment or
payments made by the undersigned hereunder, or any setoff or application of
funds of the undersigned by Laurus, the undersigned shall not be entitled to be
subrogated to any of the rights of Laurus against Debtor or against any
collateral or guarantee or right of offset held by Laurus for the payment of the
Obligations, nor shall the undersigned seek or be entitled to seek any
contribution or reimbursement from Debtor in respect of payments made by the
undersigned hereunder, until all amounts owing to Laurus by Debtor on account of
the Obligations are paid in full and Laurus' obligation to extend credit
pursuant to the Documents have been terminated. If, notwithstanding the
foregoing, any amount shall be paid to the undersigned on account of such
subrogation rights at any time when all of the Obligations shall not have been
paid in full and Laurus' obligation to extend credit pursuant to the Documents
shall not have been terminated, such amount shall be held by the undersigned in
trust for Laurus, segregated from other funds of the undersigned, and shall
forthwith upon, and in any event within two (2) business days of, receipt by the
undersigned, be turned over to Laurus in the exact form received by the
undersigned (duly endorsed by the undersigned to Laurus, if required), to be
applied against the Obligations, whether matured or unmatured, in such order as
Laurus may determine, subject to the provisions of the Documents. Any and all
present and future debts and obligations of Debtor to any of the undersigned are
hereby waived and postponed in favor of, and subordinated to the full payment
and performance of, all present and future debts and Obligations of Debtor to
Laurus, provided, however, that intercompany loans among the Guarantors and the
Debtor in the ordinary course of business and in amounts consistent with past
practice shall be permitted hereunder.

         
6. 

Security.
All sums at any time to the credit of the undersigned and any property of the
undersigned in Laurus' possession or in the possession of any bank, financial
institution or other entity that directly or indirectly, through one or more
intermediaries, controls or is controlled by, or is under common control with,
Laurus (each such entity, an "Affiliate") shall be deemed held by Laurus or such
Affiliate, as the case may be, as security for any and all of the undersigned's
obligations to Laurus and to any Affiliate of Laurus, no matter how or when
arising and whether under this or any other instrument, agreement or otherwise. 

         
7. 

Representations and Warranties.
Each of the undersigned respectively, hereby jointly and severally represents
and warrants (all of which representations and warranties shall survive until
all Obligations are indefeasibly satisfied in full and the Documents have been
irrevocably terminated), that:

(a) 

  Corporate Status. It is a corporation, partnership or limited liability
  company, as the case may be, duly organized, validly existing and in good
  standing under the laws of its jurisdiction of organization indicated on the
  signature page hereof and has 
  5

  full power, authority and legal right to own
  its property and assets and to transact the business in which it is engaged.

(b) 

Authority and Execution.
It has full power, authority and legal right to execute and deliver, and to
perform its obligations under, this Guaranty and has taken all necessary
corporate, partnership or limited liability company, as the case may be, action
to authorize the execution, delivery and performance of this Guaranty.

(c) 

Legal, Valid and Binding Character.
This Guaranty constitutes its legal, valid and binding obligation enforceable in
accordance with its terms, except as enforceability may be limited by any
applicable Insolvency Law or other laws of general application affecting the
enforcement of creditor's rights and general principles of equity that restrict
the availability of equitable or legal remedies. 

(d) 

Violations.
The execution, delivery and performance of this Guaranty will not violate any
requirement of law applicable to it or any contract, agreement or instrument to
it is a party or by which it or any of its property is bound or result in the
creation or imposition of any mortgage, lien or other encumbrance other than to
Laurus on any of its property or assets pursuant to the provisions of any of the
foregoing, which, in any of the foregoing cases, could reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect.

(e) 

Consents or Approvals.
No consent of any other person or entity (including, without limitation, any
creditor of the undersigned) and no consent, license, permit, approval or
authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority is required in connection with the
execution, delivery, performance, validity or enforceability of this Guaranty by
it, except to the extent that the failure to obtain any of the foregoing could
not reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect.

(f) 

Litigation.
No litigation, arbitration, investigation or administrative proceeding of or
before any court, tribunal, arbitrator or governmental authority, bureau or
agency is currently pending or, to the best of its knowledge, threatened (i)
with respect to this Guaranty or any of the transactions contemplated by this
Guaranty or (ii) against or affecting it, or any of its property or assets,
which, in each of the foregoing cases, if adversely determined, could reasonably
be expected to have a Material Adverse Effect.

(g) 

Financial Benefit.
It has derived or expects to derive a financial or other advantage from each and
every loan, advance or extension of credit made under the Documents or other
Obligation incurred by the Debtor to Laurus.

  
          8. 

Acceleration.

(a)  If any breach of any covenant or
condition or other event of default shall occur and be continuing under any
agreement made by Debtor or any of the undersigned to Laurus, or either Debtor
or any of the undersigned should at any time become insolvent, an "insolvent
person" (as such term is defined in the Bankruptcy and Insolvency Act (Canada)
or make a general assignment, or if a proceeding in or under any Insolvency Law
shall be filed or commenced by, or in respect of, any of the undersigned, or if
a notice of any lien, levy, or assessment is filed of record with respect
  6

  to any
assets of any of the undersigned by the United States of America or any
department, agency, or instrumentality thereof, or Canada or any department,
agency or instrumentality thereof, or if any taxes or debts owing at any time or
times hereafter to any one of them becomes a lien or encumbrance upon any assets
of the undersigned in Laurus' possession, or otherwise, any and all Obligations
shall for purposes hereof, at Laurus' option, be deemed due and payable without
notice notwithstanding that any such Obligation is not then due and payable by
Debtor.

  
(b)  Each of the undersigned will
promptly notify Laurus of any default by such undersigned in its respective
performance or observance of any term or condition of any agreement to which the
undersigned is a party involving a principal sum of more than USD$2,000 if the
effect of such default is to cause, or permit the holder of any obligation under
such agreement to cause, such obligation to become due prior to its stated
maturity and, if such an event occurs, Laurus shall have the right to accelerate
such undersigned's obligations hereunder.

           
9. 

Computation of Interest.
The Guarantors acknowledge that certain of the rates of interest applicable to
the Obligations may be computed on the basis of a year of 360 days or 365 days,
as the case may be and paid for the actual number of days elapsed. For purposes
of the Interest Act (Canada), whenever any interest is calculated using a rate
based on a year of 360 days or 365 days, as the case may be, such rate
determined pursuant to such calculation, when expressed as an annual rate is
equivalent to (i) the applicable rate based on a year of 360 days or 365 days,
as the case may be, (ii) multiplied by the actual number of days in the calendar
year in which the period for such interest is payable (or compounded) ends, and
(iii) divided by 360 or 365, as the case may be.
         
10. 

Currency of Payment.
All payments under this Guaranty shall be made in US Dollars. To the fullest
extent permitted by applicable law, the obligation of the Guarantors in respect
of any amount due under or in respect of this Guaranty, notwithstanding any
payment in any currency other than US Dollars, whether as a result of (i) any
judgment or order or the enforcement thereof, (ii) the realization on any
security, (iii) the liquidation of the Guarantors, (iv) any voluntary payment by
the Guarantors or (v) any other reason, shall be discharged only to the extent
of the amount in US Dollars that Laurus entitled to receive such payment may, in
accordance with normal banking procedures, purchase in the foreign exchange
markets in New York, New York with the sum paid in such other currency (after
any premium and costs of exchange) on the business day immediately following the
day on which Laurus receives such payment and if the amount in US Dollars that
may be so purchased for any reason is less than the amount originally due, the
Guarantors shall indemnify and save harmless Laurus from and against all loss or
damage arising out of or as a result of such deficiency. This indemnity shall
constitute an obligation separate and independent from the other obligations
contained in this Guaranty, shall give rise to a separate and independent cause
of action, shall apply irrespective of any indulgence granted by Laurus from
time to time and shall continue in full force and effect notwithstanding any
judgment or order for a liquidated sum in respect of an amount due under this
Guaranty; the Securities Purchase Agreement or any judgment or order.

         
11. 

Payments from Guarantors.
Laurus, with or without notice to the undersigned, shall apply on account of the
Obligations any payment from the undersigned or any other guarantors, or amounts
realized from any security for the Obligations.

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12. 

Costs.
The undersigned shall pay on demand, all costs, fees and expenses (including
expenses for legal services of every kind) relating or incidental to the
enforcement or protection of the rights of Laurus hereunder or under any of the
Obligations.

         
13. 

No Termination.
This is a continuing irrevocable guaranty and shall remain in full force and
effect and be binding upon the undersigned, and each of the undersigned's
successors and assigns, until all of the Obligations have been paid in full and
Laurus' obligation to extend credit pursuant to the Documents has been
irrevocably terminated. If any of the present or future Obligations are
guarantied by persons, partnerships or corporations in addition to the
undersigned, the death, release or discharge in whole or in part or the
bankruptcy, merger, consolidation, incorporation, liquidation or dissolution of
one or more of them shall not discharge or affect the liabilities of any
undersigned under this Guaranty.

         
14. 

Recapture.
Anything in this Guaranty to the contrary notwithstanding, if Laurus receives
any payment or payments on account of the liabilities guaranteed hereby, 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, or any other party under any Insolvency Law, common law or
equitable doctrine, then to the extent of any sum not finally retained by Laurus,
the undersigned's obligations to Laurus shall be reinstated and this Guaranty
shall remain in full force and effect (or be reinstated) until payment shall
have been made to Laurus, which payment shall be due on demand.

         
15. 

Books and Records.
The books and records of Laurus showing the account between Laurus and Debtor
shall be admissible in evidence in any action or proceeding, shall be binding
upon the undersigned for the purpose of establishing the items therein set forth
and shall constitute prima facie proof thereof.

         
16. 

No Waiver.
No failure on the part of Laurus to exercise, and no delay in exercising, any
right, remedy or power hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise by Laurus of any right, remedy or power hereunder
preclude any other or future exercise of any other legal right, remedy or power.
Each and every right, remedy and power hereby granted to Laurus or allowed it by
law or other agreement shall be cumulative and not exclusive of any other, and
may be exercised by Laurus at any time and from time to time.

         
17. 

Waiver of Jury Trial.
EACH OF THE UNDERSIGNED DOES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR WITH
RESPECT TO THIS GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR
RELATING OR INCIDENTAL HERETO. THE UNDERSIGNED DOES HEREBY CERTIFY THAT NO
REPRESENTATIVE OR AGENT OF LAURUS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
LAURUS WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS WAIVER OF
RIGHT TO JURY TRIAL PROVISION. 

         
18. 

Governing Law; Jurisdiction;
Amendments. THIS INSTRUMENT CANNOT BE
CHANGED OR TERMINATED ORALLY, AND SHALL BE GOVERNED, CONSTRUED AND INTERPRETED
AS TO VALIDITY, ENFORCEMENT AND IN ALL OTHER RESPECTS IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT HAVING EFFECT TO PRINCIPLES OF CONFLICTS
OF LAWS. EACH OF THE UNDERSIGNED EXPRESSLY CONSENTS TO THE JURISDICTION AND
VENUE OF 

8

THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, AND OF
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND THE
ONTARIO SUPERIOR COURT OF JUSTICE, IN EACH CASE, WHICHEVER LAURUS IN ITS SOLE
DISCRETION MAY ELECT, FOR ALL PURPOSES IN CONNECTION HEREWITH. ANY JUDICIAL
PROCEEDING BY THE UNDERSIGNED AGAINST LAURUS INVOLVING, DIRECTLY OR INDIRECTLY
ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED HEREWITH
SHALL BE BROUGHT ONLY IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF
NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK OR THE ONTARIO SUPERIOR COURT OF JUSTICE, IN EACH CASE, WHICHEVER LAURUS IN
ITS SOLE DISCRETION MAY ELECT. THE UNDERSIGNED FURTHER CONSENTS THAT ANY
SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT LIMITATION, ANY
NOTICE OR MOTION OR OTHER APPLICATION TO ANY OF THE AFOREMENTIONED COURTS OR A
JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER, MAY
BE SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT OF
NEW YORK OR THE PROVINCE OF ONTARIO, BY REGISTERED OR CERTIFIED MAIL, RETURN
RECEIPT REQUESTED (AS PERMITTED BY APPLICABLE LAW), OR BY PERSONAL SERVICE
PROVIDED A REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER MANNER
AS MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS. EACH OF THE UNDERSIGNED
WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREON
AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE OR BASED
UPON FORUM NON CONVENIENS.

         
19. 

Severability.
To the extent permitted by applicable law, any provision of this Guaranty which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

         
20. 

Amendments, Waivers.
No amendment or waiver of any provision of this Guaranty nor consent to any
departure by the undersigned therefrom shall in any event be effective unless
the same shall be in writing executed by each of the undersigned directly
affected by such amendment and/or waiver and Laurus.

         
21. 

Notice.
All notices, requests and demands to or upon the undersigned, shall be in
writing and shall be deemed to have been duly given or made (a) when delivered,
if by hand, (b) five (5) days after being sent, postage prepaid, if by
registered or certified mail, (c) when confirmed electronically, if by
facsimile, or (d) when delivered, if by a recognized overnight delivery service
in each event, to the numbers and/or address set forth beneath the signature of
the undersigned.

         
22. 

Successors.
Laurus may, from time to time, without notice to the undersigned, sell, assign,
transfer or otherwise dispose of all or any part of the Obligations and/or
rights under this Guaranty. Without limiting the generality of the foregoing,
Laurus may assign, or grant participations to, one or more banks, financial
institutions or other entities all or any part of any of the Obligations. In
each such event, Laurus, its Affiliates and each and every immediate and
successive purchaser, assignee, transferee or holder of all or any part of the
Obligations shall 

9

have the right to enforce this Guaranty, by legal action or
otherwise, for its own benefit as fully as if such purchaser, assignee,
transferee or holder were herein by name specifically given such right. Laurus
shall have an unimpaired right to enforce this Guaranty for its benefit with
respect to that portion of the Obligations which Laurus has not disposed of,
sold, assigned, or otherwise transferred.

         
23. 

Release.
Nothing except cash payment in full of the Obligations shall release any of the
undersigned from liability under this Guaranty.

[Remainder of this page is blank.

Signature page immediately follows] 

10

          IN WITNESS WHEREOF, this Guaranty
has been executed by the undersigned this 28th day of April, 2004.

	
     
	
    TUTORBUDDY INC.

	
     
	
     

	
     
	
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    SONOPTIC TECHNOLOGIES INC.

	
     
	
     

	
     
	
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    MAGICVISION MEDIA INC.

	
     
	
     

	
     
	
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11

	
     
	
    MAGIC LANTERN COMMUNICATIONS
    LTD.

	
     
	
     

	
     
	
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12EXHIBIT 10.7

STOCK PLEDGE AGREEMENT

 

           This Stock Pledge Agreement (this "Agreement"),
dated as of April 28, 2004, among Laurus Master Fund, Ltd. (the "Pledgee"), Magic Lantern
Group, Inc., a New York corporation (the "Company"), Magicvision Media Inc., an Ontario
Corporation, and Magic Lantern Communications Ltd., a Canadian Corporation, and each of
the other undersigned pledgors (the Company and each such other undersigned pledgor, a "Pledgor"
and collectively, the "Pledgors").

BACKGROUND

           The Company has entered into a Securities
Purchase Agreement dated as of April 28, 2004 (as amended, modified, restated or
supplemented from time to time, the "Purchase Agreement"), pursuant to which the Pledgee
provides or will provide certain financial accommodations to the Company.

           In order to induce the Pledgee to provide or
continue to provide the financial accommodations described in the Purchase 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 Purchase Agreement.

           
2     Pledge and Grant of Security Interest. To secure the full and punctual
payment and performance of (the following clauses (a) and (b), the "Indebtedness") (a) the
obligations under the Purchase Agreement 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, 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 of
stock set forth on Schedule A annexed hereto and expressly made a part hereof
(together with any additional shares of stock or other equity interests acquired by any
Pledgor, the "Pledged Stock"), the certificates representing the Pledged Stock 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 Stock;

                    (b)     all additional
shares of stock of any issuer (each, an "Issuer") of the Pledged Stock from time to time
acquired by any Pledgor in any manner, including, without limitation, stock dividends or a
distribution in connection with any increase or reduction of capital, reclassification,
merger, 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 shares of
any Pledged Stock 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 Stock 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 an Event of Default (as
defined below) under the Note that has occurred and is continuing beyond any applicable
grace period, 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 Pledged Stock. In addition, the Pledgee shall have
the right at such time to exchange certificates or instruments representing or evidencing
Pledged Stock 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 the Purchase Agreement 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;

                    (b)     this Agreement
constitutes the legal, valid, and binding obligation of each Pledgor enforceable against
each Pledgor in accordance with its terms;

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

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

                    (e)     no consent or
approval of any person, 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 Purchase Agreement, 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 Stock 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 Stock has 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.

                    (l)     The Pledged
Stock constitutes one hundred percent (100%) of the issued and outstanding shares of
capital stock of each Issuer.

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

                    (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 effect 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
capital stock 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 8
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.     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 the Purchase Agreement or any agreement or note related to the Purchase
Agreement 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 for a period of fifteen (15) business days after the occurrence thereof;

                    (c)     Any
representation or warranty of any Pledgor made herein, in the Purchase Agreement 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 and
shall not be cured for a period of fifteen (15) business days after the occurrence
thereof; 

                    (d)     Any portion of
the Collateral is subjected to 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, 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.

           8.     Remedies. In case
an Event of Default shall have occurred and be 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, 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

                    (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 10 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 10 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 regardless of the jurisdiction in which enforcement hereof is sought.

           9.     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, 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 Securities Act.

           
10.     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), the expenses of any taking, 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;

                    (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 9-504(1)(c) of the UCC; 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 attorneys employed by Pledgee to
collect such deficiency.

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

           12.     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.

           13.     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
attorneys' 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.

           14.     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 10 hereof.

           15.     Waivers.

                    (a)     EACH PARTY
HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR
AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OTHER AGREEMENT
EXECUTED OR DELIVERED BY THEM IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO
OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING
IN CONTRACT OR TORT OR OTHERWISE AND EACH PARTY HERETO HEREBY AGREES AND CONSENTS THAT ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY,
AND THAT ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL
BY JURY. 

           16.     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, or any other party under the United
States Bankruptcy Code, as amended, or any other federal 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.

           17.     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.

           18.     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.

                    (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 Purchase Agreement. 

                    (f)     This Agreement
shall be governed by and construed and enforced in all respects in accordance with the
laws of the State of New York applied to contracts to be performed wholly within the State
of New York.

                    (g)     EACH PLEDGOR
EXPRESSLY CONSENTS TO THE JURISDICTION AND VENUE OF EACH COURT OF COMPETENT JURISDICTION
LOCATED IN THE STATE OF NEW YORK FOR ALL PURPOSES IN CONNECTION WITH THIS AGREEMENT. ANY
JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY ANY MATTER OR CLAIM IN ANY WAY
ARISING OUT OF, RELATED TO OR CONNECTED WITH THIS AGREEMENT SHALL BE BROUGHT ONLY IN A
STATE COURT LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK. EACH PLEDGOR FURTHER
CONSENTS THAT ANY SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT
LIMITATION, ANY NOTICE OR MOTION OR OTHER APPLICATION TO EITHER OF THE AFOREMENTIONED
COURTS OR A JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER, MAY
BE SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT OF NEW YORK
BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY PERSONAL SERVICE PROVIDED
A REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER MANNER AS MAY BE
PERMISSIBLE UNDER THE RULES OF SAID COURTS. EACH PLEDGOR WAIVES ANY OBJECTION TO
JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREON AND SHALL NOT ASSERT ANY DEFENSE
BASED ON LACK OF JURISDICTION OR VENUE OR BASED UPON FORUM NON CONVENIENS.

                    (h)     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 shall be deemed an original
signature hereto.

[Remainder of Page Intentionally Left
Blank]

 

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

	
     	
    MAGIC LANTERN GROUP, INC. 

    
	 	 	 
	 	 	 
	
     	
    By:	
     
	
     	
    Name:	
     
	
     	
    Title:	
     
	 	 	 

	
     	
    MAGICVISION MEDIA INC. 

    
	 	 	 
	 	 	 
	
     	
    By:	
     
	
     	
    Name:	
     
	
     	
    Title:	
     
	 	 	 

 

	
     	
    MAGIC LANTERN COMMUNICATIONS
                            LTD. 

    
	 	 	 
	 	 	 
	
     	
    By:	
     
	
     	
    Name:	
     
	
     	
    Title:	
     
	 	 	 

	
     	
    LAURUS MASTER FUND, LTD. 

    
	 	 	 
	 	 	 
	
     	
    By:	
     
	
     	
    Name:	
     
	
     	
    Title:	
     
	 	 	 

 

                      
                    
                  
                
              
            
          
        
      
    
  

SCHEDULE A to the Stock Pledge Agreement

 

Pledged Stock

	
    Pledgor
	
    Issuer
	
    Class of Stock
	
    Stock Certificate Number
	
    Par Value
	
    Number of Shares

	
    Magic Lantern Group, Inc.

    
	
    Magicvision Media Inc.
	
    Common (Voting)
	
    C10
	No
    par
	
    7,411

	
    Magicvision Media Inc.
	
    Magic Lantern Communications Ltd.

    
	
    Common

    (Voting)
	
    C1
	No
    par
	
    33,464

	
    Magicvision Media Inc.
	
    Magic Lantern Communications Ltd.

    
	
    Class A 

    (Non-Voting)
	
    SA-3
	No
    par
	
    1,000

	
    Magic Lantern Communications Ltd.

    
	
    Tutorbuddy Inc.
	
    Common (Voting)
	
    C1
	No
    par
	
    120

	
    Magic Lantern Communications Ltd.

    
	
    Synoptic Technologies Inc.
	
    Common (Voting)
	
    10
	No
    par
	
    75

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]