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Exhibit 4.12    
  

 
 

GUARANTEE AND INDEMNITY    
  

        THIS GUARANTEE AND INDEMNITY is made as of the 1st day of November, 2002, 

	

BY:	
 	

ARCHIBALD CANDY (CANADA) CORPORATION, a corporation incorporated under the laws of Canada

(the "Guarantor")
	

 	
 	

 
	
IN FAVOUR OF:	
 	
BNY MIDWEST TRUST COMPANY, as trustee on behalf of the Holders under the Indenture

(the "Trustee")
	

 	
 	

 
	RECITALS:	 	 

	A.
	Archibald
Candy Corporation has entered into the Indenture.

	B.
	It
is required under the Indenture that the Guarantor enter into this Agreement to guarantee the Guaranteed Obligations. 

        NOW THEREFORE in consideration of the sum of $1.00, the Holders' loans to Archibald Candy Corporation as reflected by the Notes and for
other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Guarantor agrees with the Trustee as follows: 

 
 

ARTICLE 1.
  INTERPRETATION    
  

1.1.    Definitions    

        In
this Agreement, in addition to the definitions set out in the recitals hereto, if any: 

        1.1.1.    "this Agreement", "hereto", "herein", "hereof", "hereby", "hereunder" and any similar expressions refer
to this Guarantee and Indemnity as it may be supplemented, amended or restated from time to time, and not to any particular Article, section or other portion hereof; 

        1.1.2.    "Base Rate" means, the rate of interest announced within Wells Fargo Bank, National Association at its
principal office in San Francisco as its "prime rate", with the understanding that the "prime rate" is one of Wells Fargo Bank, National Association's base rates (not necessarily the lowest of such
rates) and serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such
internal publication or publications as Wells Fargo Bank, National Association may designate; 

        1.1.3.    "Business Day" means any day, other than Saturday, Sunday or any other day on which banks in the United
States or Toronto, Canada are authorized or required to close; 

        1.1.4.    "Canadian Taxes" means all Taxes imposed, levied, collected, withheld or assessed by any Governmental
Body of or within Canada or any political subdivision thereof (excluding, any Taxes imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein
(i) measured by or based on the net income or net profits of the Trustee or the Holders, or (ii) to the extent that such Tax results from a change in the circumstances of the Trustee or
the Holders); 

        1.1.5.    "Company" means Archibald Candy Corporation; 

        1.1.6.    "Conversion Rate" means, in relation to the conversion of one currency to another on a particular day,
the rate of exchange quoted by Wells Fargo Bank, National Association as its spot rate of exchange for the conversion of one currency to the other at approximately noon (Toronto time) on such day; 

        1.1.7.    "Event of Default" has the meaning attributed to such term in the Indenture; 

        1.1.8.    "Governmental Body" means any government, parliament or legislature, or any regulatory authority,
agency, commission or board of any government, parliament or legislature or any court or (without limitation to the foregoing) any other law-, regulation- or rule-making
entity, having or purporting to have jurisdiction in the relevant circumstances, or any Person acting or purporting to act under the authority of any of the foregoing (including, without limitation,
any arbitrator); 

 

        1.1.9.    "Guaranteed Obligations" means all present and future liabilities, obligations and Indebtedness (as
defined in the Indenture) of the Company or any Guarantor owing to any Holder or the Trustee under or in connection with any Note Document (all whether accruing before or after a Bankruptcy Default
(as defined in the Parent Security Agreement) and regardless of whether allowed as a claim in bankruptcy or similar proceedings); 

        1.1.10.    "Holders" has the meaning attributed to such term in the Indenture; 

        1.1.11.    "Hypothec" means the deed of movable hypothec dated November 1, 2002 made by the Guarantor in
favour of the Trustee for the benefit of the Holders; 

        1.1.12.    "Indemnifiable Circumstance" has the meaning attributed to such term in section 2.2; 

        1.1.13.    "Indemnified Amounts" means the amounts to be paid by the Guarantor under section 2.2; 

        1.1.14.    "Indenture" means the indenture dated as of November 1, 2002 among the Company, Laura Secord
Holdings Corp., the Guarantor and the Trustee; 

        1.1.15.    "Note Documents" has the meaning attributed to such term in the Indenture; 

        1.1.16.    "Notes" has the meaning attributed to such term in the Indenture; 

        1.1.17.    "Parent Security Agreement" means the security agreement dated as of November 1, 2002 by and
among the Company, Laura Secord Holdings Corp., the Guarantor and the Trustee; 

        1.1.18.    "Person" means any individual, partnership, limited partnership, joint venture, syndicate, sole
proprietorship, company or corporation with or without share capital, unincorporated association, trust, government, parliament or legislature, or any regulatory authority, agency, commission, board
or other entity however designated or constituted of any government, parliament or legislature, including without limitation any trustee, executor, administrator or other legal personal
representative, liquidator, trustee in bankruptcy, receiver, receiver and manager, and agent; 

        1.1.19.    "Proceedings" means any receivership, insolvency, proposal, bankruptcy, compromise, arrangement,
reorganization, winding-up, dissolution or other similar proceedings, whether or not any of the foregoing is judicial in nature; 

        1.1.20.    "Required Holders" means Holders holding at least 662/3% of the then outstanding
principal amount of the Notes; 

        1.1.21.    "Security" means: 

        1.1.21.1.    any
mortgage, charge, assignment, lien, security interest or other encumbrance; 

        1.1.21.2.    any
guarantee; and 

        1.1.21.3.    any
other arrangement designed to secure the payment or performance of any obligation, liability or indebtedness; 

whether
obtained from the Company, the Guarantor or any other Person and whether obtained before, at the time of or after the execution and delivery of this Agreement; 

        1.1.22.    "Security Agreement" means the general security agreement dated as of November 1, 2002 made by
the Guarantor in favour of the Trustee, on behalf of the Holders; and 

        1.1.23.    "Taxes" means all taxes of any kind or nature whatsoever including, without limitation, income taxes,
sales or value-added taxes, levies, stamp taxes, royalties, duties, and all fees, deductions, compulsory loans and withholdings imposed, levied, collected, withheld or assessed as of the date hereof
or at any time in the future, by any Governmental Body of or within Canada or any other jurisdiction whatsoever having power to tax, together with penalties, fines, additions to tax and interest
thereon. 

1.2.    Headings    

        The
inclusion of headings in this Agreement is for convenience of reference only and shall not affect the construction or interpretation hereof. 

1.3.    References to Articles and Sections    

        Whenever
in this Agreement a particular Article, section or other portion thereof is referred to, such reference pertains to the Article, section or portion thereof contained herein
unless otherwise indicated. 

2

 

1.4.    References to Agreements and Enactments    

        Except
as otherwise specifically provided: 

        1.4.1.    reference
in this Agreement to any contract, agreement or any other document shall be deemed to include (i) reference to the same as
supplemented, amended or restated from time to time and (ii) reference to any contract, agreement or any other document which substitutes, in whole or in part, for the same from time to time;
and 

        1.4.2.    reference
in this Agreement to any enactment, including, without limitation, any statute, law, by-law, regulation, rule, ordinance or order,
shall be deemed to include reference to such enactment as re-enacted or amended from time to time and to any enactment in substitution therefor. 

1.5.    Currency    

        All
amounts in this Agreement are stated and shall be paid in Canadian currency, provided that if Guaranteed Obligations are outstanding in a currency other than Canadian currency, the
Trustee, at its option, may require that such amounts be paid in such other currency, to the extent that the Guaranteed Obligations are outstanding in such other currency. 

1.6.    Gender and Number    

        In
this Agreement, unless the context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all genders. 

1.7.    Invalidity of Provisions    

        Each
of the provisions contained in this Agreement is distinct and severable and a declaration of invalidity or unenforceability of any such provision or part thereof by a court of
competent jurisdiction shall not affect the validity or enforceability of any other provision hereof. To the extent permitted by applicable law, the parties waive any provision of law which renders
any provision of this Agreement invalid or unenforceable in any respect. The parties shall engage in good faith negotiations to replace any provision which is declared invalid or unenforceable with a
valid and enforceable provision, the economic effect of which comes as close as possible to that of the invalid or unenforceable provision which it replaces. 

1.8.    No Conditions Precedent    

        This
Agreement is effective upon execution and delivery of this Agreement by the Guarantor. Such execution and delivery constitutes conclusive evidence that this Agreement was not
delivered in escrow and that any conditions precedent to the effectiveness of this Agreement have been satisfied or waived by the Guarantor. 

1.9.    Entire Agreement    

        This
Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement. There are no warranties, conditions, or representations (including
any that may be implied by statute) and there are no agreements in connection with such subject matter except as specifically set forth or referred to in this Agreement and the Indenture. No reliance
is placed on any warranty, representation, opinion, advice or assertion of fact made either prior to, contemporaneous with, or after entering into this Agreement, the Indenture or any amendment or
supplement thereof, by any party to this Agreement or the Indenture or its directors, officers, employees or agents, to any other party to this Agreement or the Indenture or its directors, officers,
employees or agents, except to the extent that the same has been reduced to writing and included as a term of this Agreement or the Indenture, and none of the parties to this Agreement or the
Indenture has been induced to enter into this Agreement or any amendment or supplement by reason of any such warranty, representation, opinion, advice or assertion of fact. Accordingly, there shall be
no liability, either in tort or in contract, assessed in relation to any such warranty, representation, opinion, advice or assertion of fact, except to the extent contemplated above. 

1.10.    Waiver, Amendment    

        Except
as expressly provided in this Agreement, no amendment or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby. No waiver of any
provision of this Agreement shall constitute a waiver of any other provision nor shall any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise expressly provided. 

3

 

1.11.    Governing Law, Attornment    

        This
Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein. 

1.12.    Indenture to Govern    

        If
there is any inconsistency between the terms of this Agreement and the terms of the Indenture, the terms of the Indenture will prevail to the extent of the inconsistency. 

 
 

ARTICLE 2.
  GUARANTEE AND INDEMNITY    
  

2.1.    Guarantee    

        The
Guarantor unconditionally and irrevocably guarantees the due and punctual payment and performance of all Guaranteed Obligations (whether or not involving parties other than the
Company, the Trustee and the Holders). 

2.2.    Indemnity    

        The
Guarantor shall indemnify and save the Trustee and the Holders harmless from and against any losses which may arise by virtue of any of the Guaranteed Obligations, the Note Documents
or any other agreement relating to any of the foregoing being or becoming for any reason whatsoever in whole or in part: 

        2.2.1.    void,
voidable, ultra vires, illegal, invalid, ineffective or otherwise unenforceable by the Trustee or
the Holders in accordance with its terms, or 

        2.2.2.    released
or discharged by operation of law (other than as a result of irrevocable payment in full of the Guaranteed Obligations), 

(all
of the foregoing collectively, an "Indemnifiable Circumstance"). For greater certainty, these losses shall include without limitation the amount of all Guaranteed Obligations which would have
been payable by the Company but for the existence of an Indemnifiable Circumstance. 

2.3.    Guarantor Liable as Principal    

        The
Guarantor shall be liable to the Trustee and the Holders as principal debtor and not as surety only, and will not plead or assert to the contrary in any action taken by the Trustee
or the Holders in enforcing this Agreement. 

2.4.    Continuing Guarantee and Indemnity    

        The
guarantee and indemnity herein shall be a continuing guarantee of the payment and performance of all the Guaranteed Obligations and a continuing indemnity for the payment of all
Indemnified Amounts and shall apply to and secure any ultimate balance thereof due or remaining unpaid to the Trustee or the Holders. The guarantee and indemnity herein shall not be considered as
wholly or partially satisfied by the intermediate payment or satisfaction at any time of all or any part of the Guaranteed Obligations or Indemnified Amounts. All dividends, compositions and payments
received by the Trustee or the Holders from the Company or any other Person shall be applied as payments in gross without any right on the part of the Guarantor to claim the benefit of any such
dividends, compositions or payments or any Security held by the Trustee or the Holders until payment in full of all Guaranteed Obligations and Indemnified Amounts. 

2.5.    Reinstatement    

        The
guarantee and indemnity herein shall be reinstated if at any time any payment of any Guaranteed Obligations or Indemnified Amounts is rescinded or must otherwise be returned by the
Trustee or the Holders upon any Proceedings of or affecting the Company or any other Person or for any other reason whatsoever, all as though such payment had not been made. The Trustee or the Holders
may concede or compromise any claim that such payment ought to be rescinded or otherwise returned, without discharging, diminishing or in any way affecting the liability of the Guarantor hereunder or
the effect of this section 2.5. 

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ARTICLE 3.
  ENFORCEMENT    
  

3.1.    Demand    

        Upon
the occurrence of an Event of Default, the Guarantor shall, on demand by the Trustee, on behalf of the Holders, forthwith pay to the Trustee, or perform or cause the performance of,
all Guaranteed Obligations for
which such demand was made. All Indemnified Amounts shall be payable by the Guarantor to the Trustee forthwith upon demand by the Trustee, on behalf of the Holders. 

3.2.    Right to Immediate Payment or Performance    

        The
Trustee shall not be bound to make any demand on or to seek or exhaust its recourse against the Company or any other Person or to realize on any Security held by it in respect of the
Guaranteed Obligations before being entitled to demand payment from or performance by the Guarantor and enforce its rights under this Agreement, and the Guarantor hereby renounces all benefits of
discussion and division. 

3.3.    Interest    

        All
amounts payable by the Guarantor under this Agreement shall bear interest payable by the Guarantor from the date of demand for payment both before and after default and judgment at
the Base Rate plus 3.0%. 

3.4.    Trustee's Statement    

        The
statement in writing of the Trustee or the Required Holders as to the amount of the Guaranteed Obligations, the Indemnified Amounts and all other amounts payable hereunder shall be
binding upon the Guarantor and conclusive against it in the absence of manifest error. 

 
 

ARTICLE 4.
  LIABILITY FOR TAXES    
  

4.1.    Gross-Up    

        All
payments made by the Guarantor to the Trustee or the Holders under this Agreement shall be made in full, without set-off or counterclaim, and free of and without
deduction or withholding for or on account of any present or future Canadian Taxes provided that, if the Guarantor shall be required by law to deduct or withhold any Canadian Taxes from or in respect
of any payment or sum payable to the Trustee or the Holders, the payment or sum payable shall be increased as may be necessary so that after making all required deductions or withholdings (including
deductions or withholdings applicable to additional amounts paid under this Article 4) the Trustee or the Holders receives an amount equal to the sum it would have received if no deduction or
withholding had been made, and the Guarantor shall pay the full amount deducted or withheld to the relevant taxation or other authority in accordance with applicable law; provided, however, that
Guarantor is not required to increase any such amounts payable to the Trustee or the Holders if the increase in such amount payable results from the Trustee's or the Holders' own wilful misconduct or
gross negligence. Guarantor will furnish to the Trustee as
promptly as possible after the date of payment of any Canadian Taxes is due pursuant to applicable law certified copies of tax receipts evidencing such payment by Guarantor. 

4.2.    Indemnity for Taxes    

        The
Guarantor shall indemnify the Trustee and the Holders in respect of: 

        4.2.1.    the
full amount of Canadian Taxes imposed or levied upon the Trustee or the Holders in respect of any payment received or receivable by it hereunder
from or on behalf of the Guarantor, whether or not such Canadian Taxes were correctly or legally asserted; and 

        4.2.2.    any
net Canadian Taxes imposed by any jurisdiction on any increased amounts payable under section 4.1 after taking into account any refund,
credit, allowance, remission or deduction from income otherwise determined or tax otherwise payable available to the Trustee or the Holders in respect of the Canadian Taxes deducted or withheld as
contemplated by section 4.1 (whether or not claimed by the Trustee). 

Payment
under this indemnification shall be made within ten days from the date the Trustee or the Required Holders make written demand therefor accompanied by a certificate of the Trustee or the
Required Holders stating the amount of the relevant Taxes and the calculation thereof. 

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4.3.    Trustee's Discretion Preserved    Nothing contained in this Article 4 shall interfere with
the right of the Trustee or any Holder to arrange its tax affairs in whatever manner it may think fit and, in particular, it shall not be under any obligation to claim relief from its tax liability in
respect of its payments, deductions or withholdings in priority to any other claims, reliefs, credits or deductions available to it. 

 
 

ARTICLE 5.
  GUARANTOR NOT TO COMPETE    
  

5.1.    Guarantor Not to Compete    

        The
Guarantor shall not: 

        5.1.1.    except
as authorized under the Indenture, take any Security or dividend from the Company or any other guarantor or Person liable directly or as surety
for all or any part of the Guaranteed Obligations; 

        5.1.2.    claim,
rank, prove or vote as a creditor in any Proceedings of or affecting the Company or any other guarantor or Person liable directly or as surety
for all or any part of the Guaranteed Obligations; 

        5.1.3.    assert
any right (including without limitation any right of set-off, right of indemnity or reimbursement or right of contribution, and any
right whether or not the right arises under any Security) against the Company or any other guarantor or Person liable directly or as surety for all or any part of the Guaranteed Obligations; or 

        5.1.4.    have
any right of subrogation to the Trustee or the Holders or be otherwise entitled to claim the benefit of any Security now or hereafter held by the
Trustee, on behalf of the Holders, in respect of the Guaranteed Obligations; 

until
the Trustee and the Holders have received payment and performance in full of all Guaranteed Obligations, all Indemnified Amounts and all other amounts payable hereunder. Any money, Security, or
other personal or real property taken or received by the Guarantor in contravention of this section 5.2 shall be held by the Guarantor in trust for the Trustee, on behalf of the Holders, or, in
the Province of Québec, as agent or mandatary for the Trustee, on behalf of the Holders, and shall be delivered or transferred to the Trustee, on behalf of the Holders, on demand. 

 
 

ARTICLE 6.
  PROTECTION OF TRUSTEE AND THE HOLDERS    
  

6.1.    Defects in Creation of Guaranteed Obligations    

        Neither
the Trustee nor the Holders shall be concerned to see or enquire into the capacity and powers of the Company or its directors, officers, employees or agents acting or purporting
to act on its behalf. All obligations, liabilities and indebtedness purporting to be incurred by the Company in favour of the Trustee or the Holders shall be deemed to form part of the Guaranteed
Obligations even though the Company may not be a legal entity or the incurring of such obligations, liabilities or indebtedness was irregularly, fraudulently, defectively or informally effected or in
excess of the capacity or powers of the Company or its directors, officers, employees or agents and notwithstanding that the Trustee or the Holders have specific notice of the capacity and powers of
the Company or its directors, officers, employees or agents. 

6.2.    Liability Absolute    

        The
liability of the Guarantor hereunder shall be absolute and unconditional and shall not be discharged, diminished or in any way affected by: 

        6.2.1.    any
amalgamation, merger, consolidation or reorganization of the Company, the Guarantor, the Trustee or any Holder or any continuation of the Company,
the Guarantor, the Trustee or any Holder from the statute under which it now or hereafter exists to another statute whether under the laws of the same jurisdiction or another jurisdiction; 

        6.2.2.    any
change in the name, business, objects, capital structure, ownership, constating documents, by-laws or resolutions of the Company, the
Guarantor, the Trustee or any Holder, including without limitation any transaction (whether by way of transfer, sale or otherwise) whereby all or any part of the undertaking, property and assets of
the Company, the Guarantor, the Trustee or any Holder becomes the property of any other Person; 

6

 

        6.2.3.    any
Proceedings of or affecting the Company, the Guarantor, the Trustee, any Holder or any other Person and any court orders made or action taken by the
Company, the Guarantor, the Trustee, any Holder or any other Person under or in connection with those Proceedings, whether or not those Proceedings or orders or that action results in any of the
matters described in sections 6.3.1.1 to 6.3.1.8 occurring with or without the consent of the Trustee; 

        6.2.4.    the
current existence or subsequent occurrence of an Indemnifiable Circumstance; 

        6.2.5.    any
defence, counterclaim or right of set-off available to the Company; 

        6.2.6.    the
fact that the Company ceases to be liable for any reason whatsoever to the Trustee or the Holders in respect of all or any part of the Guaranteed
Obligations (otherwise than by reason of the payment of those Guaranteed Obligations to the Trustee or the Holders) or the fact that a court determines that the liability of the Company to the Trustee
or the Holders in respect of all or any part of the Guaranteed Obligations has been satisfied or is deemed to have been satisfied (except in circumstances where payment of those Guaranteed Obligations
has been received by the Trustee or the Holders); and 

        6.2.7.    any
other circumstance which might otherwise constitute in whole or in part a defence available to, or a discharge of, the Guarantor, the Company
or any other Person in respect of the Guaranteed Obligations or the liability of the Guarantor (otherwise than by reason of the payment of those Guaranteed Obligations to the Trustee or the Holders). 

6.3.    Dealings by Trustee    

        6.3.1.    The
Trustee, on behalf of the Holders, may from time to time, upon direction of the Required Holders and in accordance with the terms of the Indenture,
without discharging, diminishing or in any way affecting the liability of the Guarantor hereunder: 

        6.3.1.1.    permit
any increase or decrease, however significant, of the Guaranteed Obligations or otherwise supplement, amend, restate or substitute, in whole or
in part, however significant, the Guaranteed Obligations, the Indenture or any other agreement relating to any of the foregoing or, in whole or in part, or demand repayment of any Guaranteed
Obligations; 

        6.3.1.2.    enforce
or take action under or abstain from enforcing or taking action under the Indenture or any other agreement; 

        6.3.1.3.    receive,
give up, subordinate, release or discharge any Security; supplement, amend, restate, substitute, renew, abstain from renewing, perfect or
abstain from perfecting or maintaining the perfection of any Security; enforce, take action under or realize in any manner or abstain from enforcing, taking action under or realizing any Security;
deal with or abstain from dealing with all or any part of the undertaking, property and assets covered by any Security or allow or abstain from allowing the Company or other Persons to deal with all
or any part of such undertaking, property and assets; 

        6.3.1.4.    renew
all or any part of the Guaranteed Obligations or grant extensions of time or any other indulgences to the Company or to any other guarantor or
other Person liable directly or as surety for all or any part of the Guaranteed Obligations; 

        6.3.1.5.    accept
or make any compositions or arrangements with or release, discharge or otherwise deal with or abstain from dealing with the Company or any
other guarantor or other Person liable directly or as surety for all or any part of the Guaranteed Obligations; 

        6.3.1.6.    in
whole or in part prove or abstain from proving a claim of the Trustee in any Proceedings of or affecting the Company or any other Person; and 

        6.3.1.7.    agree
with the Company, any other guarantor or any other Person to do anything described in sections 6.3.1.1 to 6.3.1.7; 

whether
or not any of the matters described in sections 6.3.1.1 to 6.3.1.8 above occur alone or in connection with one or more other such matters. 

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        6.3.2.    In
no case will the liability of the Guarantor hereunder be discharged, diminished or in any way affected as a result of: 

        6.3.2.1.    any
default under, or breach by the Trustee, the Holders or their respective agents of, (i) the Indenture or any other agreement including
without limitation any Security, (ii) any applicable law, or (iii) any other obligation or duty binding the Trustee, the Holders or their agents. 

No
loss of or in respect of any Security for the Guaranteed Obligations or any part thereof, whether occasioned through the fault of the Trustee, the Holders or otherwise, shall discharge, diminish or
in any way affect the liability of the Guarantor hereunder. Neither the Trustee, the Holders nor any of their directors, officers, employees or agents or any receiver or receiver-manager appointed by
them or by a court shall have any liability, whether in tort, contract or otherwise, for any act taken or omitted to be taken by the Trustee, the Holders or by any of such other Persons in connection
with the Guaranteed Obligations or any part thereof or any Security for the Guaranteed Obligations or any part thereof including without limitation any of the matters described above in this
section 6.3, unless and until the Guaranteed Obligations are fully satisfied. The Guarantor waives all rights it may have as surety, whether at law, in equity or otherwise, that are
inconsistent with the provisions of this Agreement. 

6.4.    Waiver of Notice    

        The
Guarantor expressly waives any right to receive notice of the existence or creation of all or any of the Guaranteed Obligations and presentment, demand, notice of dishonour, protest,
notice of any of the events or circumstances described in sections 6.1, 6.2 or 6.3 and all other notices whatsoever in respect of the Guaranteed Obligations except to the extent, if at all, that the  Personal Property Security
Act (Ontario) or other applicable law requires notice to be given to the Guarantor in connection with any disposition of
collateral by or on behalf of the Holders. The Guarantor hereby acknowledges communication to it of the terms of the Indenture and all agreements and other documents referred to in the Indenture and
of all the provisions therein contained and consents to and approves the same. 

6.5.    Expanded Interpretation    

        Notwithstanding
anything else in this Agreement, where the Trustee or the Holders allow the Company or any other Person to deal with any property and assets covered by any Security on
terms which stipulate that the Security continues to cover such property and assets after such dealing, each reference to the Company in Article 7 shall be deemed to include the Person
acquiring an interest in such property and assets. 

 
 

ARTICLE 7.
  MISCELLANEOUS    
  

7.1.    Payment of Costs and Expenses    

        Unless
otherwise paid by and agreed to be paid by the Company pursuant to the Indenture, the Guarantor shall pay to the Trustee and the Holders on demand all costs and expenses of the
Trustee and the Holders and their officers, employees and agents and any receiver or receiver-manager appointed by them or by a court in connection with this Agreement, the Hypothec and the Security
Agreement, including, without limitation: 

        7.1.1.    any
actual or proposed amendment or modification hereof or any waiver hereunder and all instruments supplemental or ancillary thereto; 

        7.1.2.    obtaining
advice as to the Trustee's and/or the Holders' rights and responsibilities under this Agreement; and 

        7.1.3.    the
defence, establishment, protection or enforcement of any of the rights or remedies of the Trustee or the Holders under this Agreement including,
without limitation, all costs and expenses of establishing the validity and enforceability of, or of collection of amounts owing under, this Agreement; 

and
further including, without limitation, all of the fees, expenses and disbursements of the Trustee's legal counsel and one legal counsel for all Holders (except if in the judgment of counsel to any
Holder or Holders there is a conflict between such Holder's or Holders' position and the position of the other Holders, then such Holder or Holders shall be entitled to its or their own counsel, as
the case may be, at the Guarantor's expense), on a solicitor and his own client basis, incurred in connection therewith and all sales or value-added taxes payable by the Trustee or the Holders
(whether refundable or not) on all such costs and expenses. 

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7.2.    Currency Conversion and Indemnity    

        If,
in connection with any claim or proof made or filed against the Guarantor, any action brought in connection with this Agreement or any judgment or order obtained as a result thereof,
it becomes necessary to convert any amount due hereunder in one currency (the "first Currency") into another currency (the "second Currency"), then the conversion shall be made at the Conversion Rate
on the first Business Day prior to the day on which payment is received. 

        If
the conversion in connection with any action is not able to be made in the manner contemplated by the preceding paragraph in the jurisdiction in which the action is brought, then the
conversion shall be made at the Conversion Rate on the day on which the judgment is given. 

        If
the Conversion Rate on the date of payment is different from the Conversion Rate on such first Business Day or on the date of judgment or such other date upon which a court may order
the conversion made, as the case may be, the Guarantor shall pay such additional amount (if any) in the second Currency as may be necessary to
ensure that the amount paid on such payment date is the aggregate amount in the second Currency which, when converted at the Conversion Rate on the date of payment, is the amount due in the first
Currency, together with all costs and expenses of conversion. Any additional amount owing by the Guarantor to the Trustee or the Holders pursuant to the provisions of this section shall be due as a
separate debt and shall give rise to a separate cause of action and shall not be affected by or merged into any judgment obtained for any other amounts due under or in respect of this Agreement. 

7.3.    No Set-off By Guarantor    

        All
amounts payable by the Guarantor under this Agreement shall be paid without set-off or counterclaim and without any deduction or withholding whatsoever unless and to the
extent that the Guarantor shall be prohibited by law from doing so, in which case the Guarantor shall pay to the Trustee or the Holders such additional amount as shall be necessary to ensure that the
Trustee or the Holders, as the case may be, receive the full amount it would have received if no such deduction or withholding had been made. 

7.4.    No Waiver    

        No
delay on the part of the Trustee or the Holders in the exercise of any right, power or remedy hereunder or otherwise shall operate as a waiver thereof, and no single or partial
exercise by the Trustee or the Holders of any right, power or remedy shall preclude other or further exercise thereof or the exercise of any other right, power or remedy. No action of the Trustee or
the Holders permitted hereunder shall in any way impair or affect its rights, powers or remedies under this Agreement. 

7.5.    Additional Security    

        This
Agreement shall be in addition to, and shall not be in any way prejudiced by nor shall this Agreement prejudice: 

        7.5.1.    any
other Security now or hereafter held by the Holders or by the Trustee, on behalf of the Holders, and 

        7.5.2.    the
endorsement by the Guarantor of any notes or other documents, 

and
the Trustee's and the Holders' rights under this Agreement shall not be merged in any such other Security or endorsement. 

7.6.    Assignment and Transfer by Holders    

        The
Holders may sell, assign or transfer all or any of the Guaranteed Obligations in accordance with the procedures set forth in the Indenture, and in such event each and every immediate
and successive assignee, transferee or holder of all or any of the Guaranteed Obligations, shall have, in respect of the rights or obligations sold, assigned or transferred to it, the full benefit
hereof to the same extent as if it were an original party hereto and to the Guaranteed Obligations or the part thereof so sold, assigned or transferred, without regard to any set-off,
counterclaim or equities between the Company, the Trustee and the Holders or the Guarantor, the Trustee and the Holders. 

7.7.    Communication    

        Any
notice or other communication, including a demand or a direction, required or permitted to be given hereunder shall be in writing and shall be personally delivered or sent by
registered or certified mail (postage 

9

 

prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as the Guarantor or the Trustee, as applicable, may designate to each other in accordance herewith), or
telefacsimile, as the case may be, at its address set forth below: 

	 	 	(a)        if to the Trustee:
	

 	
 	

 	
 	

 
	 	 	BNY Midwest Trust Company

2 North LaSalle Street, Suite 1020

Chicago, IL 60602
	

 	
 	

 	
 	

 
	 	 	Attention:	 	Corporate Trust Administration
	 	 	Telecopier number:	 	312.827.8542
	

 	
 	

 	
 	

 
	 	 	(b)        if to the Guarantor:
	

 	
 	

 	
 	

 
	 	 	Archibald Candy (Canada) Corporation

c/o Archibald Candy Corporation

1137 West Jackson Boulevard

Chicago, Illinois

60607
	

 	
 	

 	
 	

 
	 	 	Attention:	 	President and Chief Operating Officer
	 	 	Telecopier number:	 	312.243.3992

        All
notices or demands sent in accordance with this Section 7.7, other than notices by Trustee in connection with enforcement rights against the Collateral under the provisions of
the New York Uniform Commercial Code or other applicable personal property security legislation, shall be deemed received on the earlier of the date of actual receipt or three Business Days after the
deposit thereof in the mail. The Guarantor acknowledges and agrees that notices sent by the Trustee in connection with the exercise of enforcement rights against Collateral under the provisions of the
New York Uniform Commercial Code or other applicable personal property security legislation shall be deemed sent when deposited in the mail or personally delivered, or, where permitted by law,
transmitted by telefacsimile or any other method set forth above. 

        Notwithstanding
the foregoing, if applicable personal property security legislation requires that a notice or other communication be given in a specified manner, then any such notice or
communication shall be given in such manner. 

7.8.    Successors and Assigns    

        This
Agreement shall be binding upon the Guarantor and its successors and enure to the benefit of the Trustee, the Holders and their respective successors and assigns. 

7.9.    Copy Received    

        The
Guarantor acknowledges receipt of a copy of this Agreement. 

7.10.    Subordination to Rights of Holders of Senior Debt    

        Notwithstanding
anything to the contrary in this Agreement: (a) all rights granted by the Guarantor to the Trustee for the benefit of the Holders pursuant to this Agreement shall
be subject and subordinate to the rights granted by the Guarantor to the Agent (as defined in the Parent Security Agreement) for the benefit of the holders of the Senior Debt (as defined in the
Indenture), on the terms set forth in article 11 of the Indenture; (b) all obligations of and covenants made by the Guarantor to the Trustee pursuant to this Agreement shall be subject
and subordinate to the obligations of and covenants made by the Guarantor to the Agent and the holders of the Senior Debt pursuant to the Senior Credit Facility (the "Senior Debt Obligations"), on the
terms set forth in article 11 of the Indenture; and (c) to the extent that the Guarantor takes any action required by the Senior Credit Facility that would, if taken on behalf of the
Trustee, satisfy any obligation under this Agreement, then such obligation under this Agreement shall be deemed satisfied so long as any Senior Debt Obligations remain outstanding and the Senior
Credit Facility remains in effect. 

7.11.    Trustee    

        In
addition to all benefits provided herein, the Trustee is entitled to all rights, privileges, protections, immunities and indemnities provided to it under the Indenture. 

10

 

(Remainder
of this page intentionally left blank) 

11

 

        IN WITNESS WHEREOF the Guarantor has executed this Agreement as of the date first above written. 

	 	 	ARCHIBALD CANDY (CANADA) CORPORATION
	

 	
 	

 	
 	

 
	 	 	by:	 	/s/ TED A. SHEPHERD
 Name: Ted A. Shepherd

Title: President and Chief Executive Officer
	

 	
 	

 	
 	

 
	 	 	by:	 	/s/ RICHARD J. ANGLIN
 Name: Richard J. Anglin

Title: Vice President and Chief Financial Officer

12

QuickLinks

Exhibit 4.12

GUARANTEE AND INDEMNITY

ARTICLE 1. INTERPRETATION

ARTICLE 2. GUARANTEE AND INDEMNITY

ARTICLE 3. ENFORCEMENT

ARTICLE 4. LIABILITY FOR TAXES

ARTICLE 5. GUARANTOR NOT TO COMPETE

ARTICLE 6. PROTECTION OF TRUSTEE AND THE HOLDERS

ARTICLE 7. MISCELLANEOUSQuickLinks
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Exhibit 4.13    
  

 
 

DEED OF MOVABLE HYPOTHEC    
  

        ON
THE FIRST (1st) DAY OF NOVEMBER TWO THOUSAND AND TWO (2002). 

        B
E F O R E Mtre Laurent Roy, the undersigned Notary for the Province of Québec, practicing at Montréal. 

        APPEARED:        ARCHIBALD CANDY (CANADA) CORPORATION, a corporation duly constituted pursuant to the Canada
Business Corporations Act, having its head office at 1 Valleybrook Drive, Don Mills, Ontario M3B 2S7, herein acting and represented by Richard Anglin, Vice President,
hereunto duly authorized pursuant to a resolution adopted by its sole shareholder on November 1, 2002, himself represented by Virginie Arbour-Maynard, authorized representative, in virtue of a
power of attorney dated October 31, 2002, a copy of both the certified copy of the resolution and of the power of attorney is annexed hereto after having been acknowledged as true and signed
for the purposes of identification by said representative in the presence of the undersigned Notary. 

        (hereinafter
the "Grantor") 

        AND:        BNY MIDWEST TRUST COMPANY, an Illinois trust company, having its head office at 2 North LaSalle Street, Suite 1020,
Chicago, Illinois 60602, as Fondé de pouvoir for the Holders of the Notes. BNY Midwest Trust Company acts herein and is represented by
Brigitte Gauthier, duly authorized as she so declares. Notice of its address will be registered at the Register of Personal and Movable Real Rights concurrently with the registration of this hypothec. 

        (the
"Grantee") 

        WHEREAS, pursuant to the terms of an indenture dated as of November 1, 2002 entered into by and among Archibald Candy Corporation,
as an obligor (the "Obligor"), Laura Secord Holdings Corp., as a guarantor, the Grantor, as a guarantor, and BNY Midwest Trust Company, as trustee (as
such indenture may be amended, restated or replaced, from time to time, the "Indenture"), the Grantor has agreed to guarantee the obligations of the Obligor under the terms of a guarantee and
indemnity agreement governed by the laws of the Province of Ontario, dated as of November 1, 2002 and entered into between BNY Midwest Trust Company, as trustee, and the Grantor (as such
agreement may be amended, restated or replaced, from time to time, the "Guarantee Agreement"). 

        WHEREAS under the Indenture the Grantor is required to enter into this Deed to secure its obligations under the Guarantee Agreement. 

        NOW
THEREFORE, THE PARTIES HERETO HAVE AGREED AS FOLLOWS: 

1.    INTERPRETATION  

        1.1    Definitions    

        The
following terms, wherever used in this Deed, shall, unless there be something in the context inconsistent therewith, have the following meanings: 

	 	1.1.1	 	"Agent" shall have the meaning ascribed to it in Section 11 hereof;
	

 	

1.1.2	
 	

"Business Day" means any day that is not a Saturday, a Sunday or any other day on which banks in the United States or Toronto, Canada are authorized or required to close;
	

 	

1.1.3	
 	

"Canadian Dollars" or "CDN$" means the currency having legal tender in Canada;
	

 	

1.1.4	
 	

"Charged Property" shall have the meaning ascribed to it in Section 3 hereof;
	

 	

1.1.5	
 	

"Event of Default" shall have the meaning ascribed to it in the Indenture;
	

 	

1.1.6	
 	

"Grantee" means the Person appointed as Fondé de pouvoir for the Holders of the Notes pursuant to Section 2 hereof and shall include its successors or assigns appointed pursuant to the
provision of the Indenture;
	

 	

1.1.7	
 	

"Holder" means a Person in whose name a Note is registered;
	

 	

1.1.8	
 	

"Hypothec" means the hypothec created pursuant to Section 3 hereof;
	

 	

1.1.9	
 	

"Notes" means the Obligor's 10% Secured Subordinated Notes due 2007, as authenticated under the Indenture;
	
 	

 	
 	

 

 

	

 	

1.1.10	
 	

"Person" means any individual, corporation, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated organization, government or any agency or political subdivision thereof, or any other
entity;
	

 	

1.1.11	
 	

"Property in Stock" shall have the meaning ascribed to it in paragraph 3.1 hereof;
	

 	

1.1.12	
 	

"Secured Obligations" means all of the obligations which are to be secured by the Hypothec pursuant to Section 5 hereof;
	

 	

1.1.13	
 	

"Senior Debt Obligations" shall have the meaning ascribed to it in Section 11 hereof;
	

 	

1.1.14	
 	

"this Deed" "these presents", "herein", "hereby", "hereunder", "hereof" and similar expressions refer to this Deed, and to any agreement or document supplemental or complementary hereto or restating this Deed.

        1.2    Capitalized terms    

        Capitalized
terms used herein and not otherwise defined shall have the meaning given to them in the Indenture. 

        1.3    Gender    

        Unless
there be something in the context inconsistent therewith, words importing the masculine gender shall include the feminine gender and vice versa. 

        1.4    Headings    

        The
division of this Deed into sections, subsections and paragraphs and the insertion of titles are for convenience of reference only and do not affect the meaning or the interpretation
of the present Deed. Unless otherwise indicated, a reference to a particular section, subsection or paragraph is a reference to the particular section, subsection or paragraph in this Deed. 

2.    APPOINTMENT OF THE GRANTEE AS FONDÉ DE POUVOIR  

        The Grantor hereby irrevocably appoints BNY MIDWEST TRUST COMPANY and BNY MIDWEST TRUST COMPANY accepts, to act as Fondé de
pouvoir ("person holding the power of attorney") as contemplated in Article 2692 of the Civil Code of Quebec on behalf of
the present and future Holders of the Notes, in order to receive and hold any right, hypothec and security interest created hereby and hereafter created or constituted, including as continuing
security for the payment of the Notes, and that notwithstanding Section 32 of the Act respecting the special powers of legal persons (Quebec),
the Grantee may, as the person holding the power of attorney of the Holders of the Notes, acquire any Notes or other title of indebtedness secured by any hypothec granted by the Grantor to the Grantee
pursuant to the laws of the Province of Quebec. 

3.    HYPOTHEC: DESCRIPTION OF CHARGED PROPERTY  

        The Grantor hereby hypothecates in favour of the Grantee the universality of its movable property, corporeal and incorporeal, present and future, of any nature
whatsoever and wheresoever situated (hereinafter the "Charged Property"), the whole including without limitation the following universalities of present and future movable properties: 

        3.1    Property in Stock    

        All
property in stock or inventory of any nature and kind of the Grantor whether in its possession, in transit or held on its behalf, including raw materials or other materials, goods
manufactured or transformed, or in the process of being so, by the Grantor or by others, packaging materials, property evidenced by bill of lading, animals, mineral substances, hydrocarbons and other
products of the soil as well as all fruits thereof, from the time of their extraction (hereinafter the "Property in Stock"). 

        The
Property in Stock held by third parties pursuant to a lease agreement, a leasing contract, a franchise or license agreement, or any other agreement entered into with the Grantor or
on its behalf, is also subject to this Hypothec. 

        Property
having formed part of the Property in Stock which has been alienated by the Grantor in favour of a third person but in respect of which the Grantor has retained title pursuant
to a reservation of ownership provision, shall remain charged by the Hypothec until title is transferred; any Property in Stock the ownership of 

2

 

which reverts to the Grantor pursuant to the resolution or resiliation of any agreement is also subject to the Hypothec. 

        3.2    Claims, Book Debts and Other Movable Property    

            3.2.1    Claims, Receivables and Book Debts 

        All
of the Grantor's claims, debts, demands and choses in action, whatever their cause or nature, whether or not they are certain, liquid or exigible; whether or not evidenced by any
title (and whether or not such title is negotiable), bill of exchange or draft; whether litigious or not; whether or not they have been previously or are to be invoiced; whether or not they constitute
book debts. Hypothecated claims shall include: (i) indemnities payable to the Grantor under any contract of liability insurance, insurance of persons or subject to the rights of creditors
holding hypothecs on the insured property, (ii) the sums owing to the Grantor in connection with interest or currency exchange contracts and other treasury or hedging instruments, management of
risks instruments or derivative products existing in favour of the Grantor, and (iii) the Grantor's rights in the credit balance of accounts held for its benefit by the Grantee (subject to the
Grantee's compensation rights) or by any financial institution or any other person. 

            3.2.2    Rights of Action 

        The
Grantor's rights under contract with third parties as well as the Grantor's rights of action and claims against third persons. 

            3.2.3    Accessories 

        All
the securities, security agreements, guarantees, suretyships, notes and accessories to the claims and rights mentioned above and other rights relating thereto (including, without
limitation, the rights of the Grantor in its capacity as seller under an installment sale or a conditional sale, where the claims are the result of such sale). 

            3.2.4    Movable Property 

        All
movable property owned by the Grantor and covered by the installment or conditional sales mentioned in paragraph 3.2.3 hereof. 

        A
right or a claim shall not be excluded from the Charged Property by reason of the fact that: (i) the debtor thereof is domiciled outside the Province of Québec or
(ii) the debtor thereof is an affiliate (as such term is defined in the Canada Business Corporations Act) of the Grantor (regardless of the law
of the jurisdiction of its
incorporation) or (iii) such right or claim is not related to the operation of the Grantor or (iv) such right or claim is not related to the ordinary course of business of the Grantor. 

        3.3    Securities    

        All
securities (including shares, debentures, units, bonds, obligations, rights, options, warrants, debt securities, investment certificates, units in mutual funds) held by the Grantor
or on its behalf, as well as all those which are delivered by the Grantor to the Grantee or to a third party on its behalf from time to time. 

        3.4    Equipment and Road Vehicles    

        All
the equipment, office furniture, tools, machinery, rolling stock (including road vehicles), spare parts and additions. 

        3.5    Trade Marks and Other Intellectual Property Rights    

        All
of the Grantor's rights in any trade mark, copyright, industrial design, patent, invention, trade secret, know-how, plant breeders' right, topography of integrated
circuits and in any other intellectual property right (registered or not) including, if any, improvements and modifications thereto as well as rights in any action pertaining to the protection, in
Canada or abroad, of any such intellectual property rights. 

        3.6    Fruits and Revenues    

        All
fruits and revenues emanating from the above Charged Property, including without limitation equipment, negotiable instruments, bills, commercial paper, securities, monies,
compensation for expropriation given or paid 

3

 

following a sale, repurchase, distribution or any other operation concerning any property hereby charged in favour of the Grantee or which has been charged under any other agreement. 

        3.7    Records and Others    

        All
records, data, vouchers, invoices and other documents related to the Charged Property described above, including without limitation computer programs, disks, tapes and other means of
electronic communications as well as the rights of the Grantor to recover such property from third parties, receipts, client lists, directories and other similar property. 

        Where,
under the terms of any of the above paragraphs, the Hypothec charges a universality of movable property, all movable property which is acquired, transformed or manufactured after
the date of this Deed shall be charged by the Hypothec, whether or not such property has been acquired in replacement of other Charged Property which may have been alienated by the Grantor in the
ordinary course of business, whether or not such property results from a transformation, mixture or combination of any Charged Property, and in the case of securities, whether or not they have been
issued pursuant to the purchase, redemption, conversion or cancellation or any other transformation of the charged securities and without the Grantee being required to register or
re-register any notice whatsoever, the object of the Hypothec being a universality of present and future movable property. 

4.    AMOUNT OF THE HYPOTHEC  

        The amount for which the Hypothec is granted is a principal amount of ONE HUNDRED THIRTY MILLION CANADIAN DOLLARS (CDN$130,000,000) with interest thereon from the
date of this Deed at the rate of twenty-five percent (25%) per annum. 

5.    SECURED OBLIGATIONS

        The
Hypothec shall secure payment and performance of all of the Guaranteed Obligations (as such term is defined in the Guarantee Agreement) and all of the Grantor's other obligations,
direct or indirect, at any time owing to the Grantee and resulting from or contemplated by the Guarantee Agreement. 

        The
Hypothec further secures the payment of all sums due or to become due pursuant to the present Deed and the performance of all obligations provided for under the present Deed. 

        Any
future obligation hereby secured shall be deemed to be one in respect of which the Grantor has once again obligated itself hereunder according to the provisions of
section 2797 of the Civil Code of Québec.  

6.    ADDITIONAL PROVISIONS TO THE HYPOTHEC ON CLAIMS  

        6.1    Recovery    

        The
Grantee may recover all claims and other Charged Property referred to in paragraph 3.2, in accordance with what is provided for by law; it may further exercise any rights
regarding such property and more particularly, it may grant or refuse any consent which may be required from the Grantor in its capacity as owner of such property, and shall not, in the exercise of
such right, be required to obtain the consent of the Grantor or serve the Grantor any notice thereof, nor shall it be under any obligation to establish that the Grantor has refused or neglected to
exercise such rights, grant delays, take or abandon any security, transact with debtors of the hypothecated claims, make compromises, grant releases and generally deal at its discretion with matters
concerning all Charged Property referred to in paragraph 3.2 without the intervention or consent of the Grantor. 

        6.2    Authorization to Recover    

        Save
and except for claims resulting from an expropriation and save for any other claims whose collection is otherwise dealt with pursuant to the Indenture or any other agreement entered
into between the Grantor and BNY Midwest Trust Company, the Grantee hereby authorizes the Grantor to recover the claims and other Charged Property referred to in paragraph 3.2. Such
authorization may be revoked at any time by the Grantee after the occurrence and during the continuation of an Event of Default, with respect to all or any part of the hypothecated claims, and the
Grantee may effect such recovery and shall then be entitled to any of the rights referred to in paragraph 6.1 above; the Grantor shall then remit to the Grantee all records, books, invoices,
bills, contracts, titles, papers and other documents related to the claims. If, after such authorization is revoked (and even if such revocation is not yet registered or delivered to the holders of
such claims), sums payable under such 

4

 

claims and property are paid to the Grantor, it shall receive same as mandatary of the Grantee and shall remit same to the Grantee promptly without the necessity of any demand to this effect. 

7.    ADDITIONAL PROVISIONS TO THE HYPOTHEC ON SECURITIES  

        The Grantee may, if it deems it useful to protect its rights in and to the hypothecated securities, transfer any securities or any part thereof into its own name
or that of a third party so that the Grantee or its nominee(s) may appear as the sole registered holder in which case: 

        7.1    Voting rights    

        All
voting rights and any other right attached to such securities shall be exercised by the Grantee or on its behalf. 

        7.2    Revenues, dividends and others    

        The
Grantee shall collect revenues, dividends and capital distributions and may either hold them as Charged Property or apply them in reduction of the Secured Obligations. 

        7.3    Proxy    

        The
Grantee may give the Grantor a proxy, revocable at any time, authorizing it to exercise, in whole or in part, all voting rights and any other rights attached to such securities. 

        For
the purpose of this Section 7, the Grantor hereby irrevocably appoints any officer or employee of the Grantee as its attorney with full power of substitution and authority to
execute such documents necessary to render effective the rights granted to the Grantee pursuant to the present Section 7. 

8.    ASSIGNMENT OF CLAIMS SUBJECT TO THE FINANCIAL ADMINISTRATION ACT  

        The Grantor hereby assigns to the Grantee by way of absolute assignment all its present and future claims which are subject to Sections 67 and 68 of the  Financial
Administration Act, as collateral and continuing guarantee of all Secured Obligations referred to in paragraph 5 hereof. The Grantee
may, at any time, fulfill any of the formalities required by law to make such transfer enforceable. 

9.    COVENANTS  

        The Grantor hereby covenants not to, directly or indirectly, create, incur, assume or suffer to exist any Lien on any asset (including, without limitation, all
real, tangible or intangible property) of the Grantor, whether now owned or hereafter acquired, or on any income or profits therefrom, or assign or convey any right to receive income therefrom, except
(i) Purchase Money Liens securing Indebtedness permitted to be incurred pursuant to clause (iv) of Section 4.9(b) of the Indenture, and (ii) Permitted Liens. 

10.    GRANTEE'S RECOURSES IN CASE OF DEFAULT  

        10.1    Grantee's rights    

        Upon
the occurrence of any Event of Default, the Grantee may, in connection with all or part of the Secured Obligations, declare that the Grantor has lost the benefit of the term which
may have benefited it. The Grantee, for the benefit of the Holders, may request immediate payment of all obligations, and may exercise all its recourses against the Grantor to which it may be entitled
in case of default under law or hereunder. 

5

 

        10.2    Exercise of recourses    

        In
case of an Event of Default, whichever hypothecary rights the Grantee may decide to exercise or whichever other rights or recourses the Grantee may wish to exercise either pursuant to
the law of any other jurisdiction or in equity, the following provisions shall apply: 

	 	10.2.1	 	In order to protect or to realize the value of the Charged Property, the Grantee, for the benefit of the Holders, may, at its entire discretion, at the Grantor's expense:

	

 	

10.2.1.1	
 	

pursue the transformation of the Charged Property or any work in process or unfinished goods comprised in the Charged Property and complete the manufacture or processing thereof or proceed with any operations to which such property is submitted by
the Grantor in the ordinary course of its business and acquire property for such purposes;
	

 	

10.2.1.2	
 	

alienate or dispose of any Charged Property which may be obsolete, may perish or is likely to depreciate rapidly;
	

 	

10.2.1.3	
 	

use for its benefit all information obtained while exercising its rights;
	

 	

10.2.1.4	
 	

perform any of the Grantor's obligations;
	

 	

10.2.1.5	
 	

exercise any right attached to the Charged Property;
	

 	

10.2.1.6	
 	

for the exercise any of its rights, use the premises in which the Grantor's property is located or the equipment, machinery, process, information, records, computer programs and intellectual property of the Grantor;
	

 	

10.2.1.7	
 	

borrow monies or lend monies and, in such cases the monies borrowed or lent by the Grantee shall bear interest at the rate then obtained by the Grantee or its affiliates in the case of monies borrowed or determined reasonably by the Grantee in the
case of monies lent by it; these monies shall be reimbursed by the Grantor on demand and, until it has been repaid in full, such monies and interest thereon shall be secured by the present Hypothec and be paid in priority of any other sums secured
hereby;
	

 	

10.2.1.8	
 	

ensure the maintenance or repair, restore or renovate, begin or terminate any construction work related to the Charged Property, the whole at the Grantor's costs;
	

 	

10.2.2	
 	

The Grantee shall exercise its rights in good faith, in order that, following the exercise thereof, the obligations secured by the Hypothec be reduced, in a reasonable manner, taking into account all circumstances;
	

 	

10.2.3	
 	

The Grantee may, directly or indirectly, purchase or otherwise acquire the Charged Property;
	

 	

10.2.4	
 	

The Grantee, when exercising its rights, may waive any right of the Grantor, with or without consideration therefor;
	

 	

10.2.5	
 	

The Grantee shall not be bound to make an inventory, to take out insurance or to grant any other security;
	

 	

10.2.6	
 	

The Grantee shall not be bound to continue to carry on the Grantor's enterprise or to make the Charged Property productive, or to maintain such property in operating condition;
	

 	

10.2.7	
 	

The Grantor shall, upon request of the Grantee, move the Charged Property and render it available to the Grantee unto premises designated by the Grantee and which, in its opinion, shall be more suitable in the circumstances.

            10.3    If the Grantor exercises its right, if any, to remedy to the Event of Default mentioned in the prior notice of default,
the Grantor shall, as the law requires it, pay all reasonable fees incurred by the Grantee by reason of the default; these fees shall include without limitation the administrative fees of the Grantee,
the legal fees of its legal advisers and fees paid to experts. 

            10.4    If the Grantee, for the benefit of the Holders, elects to exercise its hypothecary right of taking in payment the
Charged Property and the Grantor requires instead that the Grantee sell itself or under judicial 

6

 

authority the Charged Property on which such right is exercised, the Grantor hereby acknowledges that the Grantee shall not be bound to abandon its recourse of taking in payment unless, prior to the
expiry of the time period allotted for surrender, the Grantee (i) has been granted with a security which it considers satisfactory, guaranteeing that said Charged Property will be sold at a
sufficiently high price to enable its claim to be paid in full; (ii) has been reimbursed of all reasonable costs and reasonable expenses incurred, including all fees of consultants and legal
counsel, (iii) has been advanced the necessary sums for the sale of said Charged Property; the Grantor further acknowledges that the Grantee shall have the right to choose the type of sale it
may carry out. 

            10.5    The Grantor will be deemed to have surrendered the Charged Property held by the Grantee or on its behalf if the Grantee
has not, within the delays determined by law or by a tribunal to surrender, received written notice from the Grantor to the effect that it is opposed to the exercise of the hypothecary recourse set
forth in the prior notice. 

            10.6    Where the Grantee sells the Charged Property itself, it shall not be required to obtain any prior assessment by a third
party. 

            10.7    The Grantee may choose to sell the Charged Property with legal warranty given by the Grantor or with complete or
partial exclusion of such warranty; the sale may also be made cash or with a term or under such conditions determined by the Grantee; it can be cancelled in case of non-payment of the
purchase price and such Charged Property may then be resold. 

            10.8    In order to exercise any of its rights, the Grantee may use the premises in which the Grantor's property is located. 

            10.9    Where more than one creditor is involved, the parties hereto waive the application of sections 1332 to 1338 inclusively
of the Civil Code of Québec. 

11.    SUBORDINATION TO RIGHTS OF HOLDERS OF SENIOR DEBT

        Notwithstanding
anything to the contrary in this Deed: (a) all liens, rights and actions in respect of the Charged Property granted by the Grantor to the Grantee pursuant to this
Deed (including any rights to take possession of or dispose of the Charged Property) shall be subject and subordinate to all liens, rights and actions in respect of the Charged Property granted by the
Grantor to Foothill Capital Corporation (and its successors and assigns) (the "Agent"), as agent for the holders of the Senior Debt (see Section 1.2 hereof), on the terms set forth in
article 11 of the Indenture; (b) all obligations of and covenants by the Grantor to the Grantee in respect of the Charged Property pursuant to this Deed shall be subject and subordinate
to the obligations of and covenants by the Grantor to the Agent and the holders of the Senior Debt in respect of the Charged Property pursuant to the Senior Credit Facility (the "Senior Debt
Obligations"), on the terms set forth in article 11 of the Indenture; and (c) to the extent that the Grantor takes any action required by the Senior Credit Facility that would, if taken
on behalf of the Grantee, satisfy any obligation under this Deed, then such obligation under this Deed shall be deemed satisfied so long as any Senior Debt Obligations remain outstanding and the
Senior Credit Facility remains in effect. 

12.    GENERAL PROVISIONS  

        12.1    Additional Security    

        The
Hypothec is hereby created in addition to and not in substitution of or in replacement for any other hypothec or security held by the Grantee or for the benefit of the Holders, and
does not affect the Grantee's rights of compensation and set-off. 

        12.2    Investments    

        The
Grantee may, at its entire discretion, invest any monies or instruments received or held by it in pursuance of this Deed or deposit them in a non-interest bearing account
without having to comply with any legal provisions concerning the investment of property of others. 

        12.3    Imputation of Payments    

        The
Grantee shall impute and apply any amounts collected in the exercise of its rights or received by it prior to or after any Event of Default in accordance with the Indenture. 

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        12.4    Delays    

        The
Grantee may grant delays, take or abandon any security, make compromises, grant acquittances and releases and generally deal, at its entire discretion, with any matters related to
the Charged Property, the whole without limiting the rights of the Grantee and without limiting the liability of the Grantor. 

        12.5    Continuing Security    

        The
Hypothec shall be a continuing security and shall remain in full force and effect despite the repayment from time to time, of the whole or of any part of the obligations secured
hereunder; it shall remain in full force until the execution of a final release by the Grantee. 

        12.6    Notice of Default    

        The
mere lapse of time provided for the Grantor to perform its obligations or the arrival of the term shall automatically create a default, without any obligation for the Grantee to
serve any notice or prior notice to the Grantor. 

        12.7    Cumulative Rights    

        The
exercise by the Grantee of any of its rights shall not preclude it from exercising any other right under this Deed or the law; the rights of the Grantee shall be cumulative and not
alternative. The non-exercise by the Grantee of one of its rights shall not constitute a waiver of any subsequent exercise of such right. The Grantee may exercise its rights under this
Deed without any obligation to exercise any right against any other person liable for payment of the obligations secured hereunder and without having to realize any other security which secures such
obligations. 

        12.8    Irrevocable power of attorney    

        The
Grantee is hereby appointed as the irrevocable attorney of the Grantor with full powers of substitution for the purpose of paragraph 11.9 or for the purpose of carrying out
any and all acts and execute any and all
agreements, proxies or other documents which it may deem useful in order to exercise its rights or any rights which the Grantor neglects or refuses to execute or to carry out. 

        12.9    Performance    

        The
Grantee may, at its entire discretion, perform any of the Grantor's liabilities under this Deed. It may then immediately request payment of any expense incurred in doing so,
including interest at the rate at which interest accrues on the Notes, and such repayment is secured by the Hypothec. 

        12.10    Delegation    

        The
Grantee may, at its entire discretion, appoint any person or persons for the purpose of exercising any of its rights or actions or for the performance of any of its obligations
resulting from this Deed or under the law or in equity; in such case, the Grantee may provide such person with any information relating to the Grantor or the Charged property. 

        12.11    Liability    

        The
Grantee shall not be liable for material injuries or damages resulting from its fault, unless such fault is gross or intentional. 

        12.12    Successors    

        The
rights hereby conferred upon the Grantee shall benefit all its successors, including any entity resulting from the merger of the Grantee with any other person or persons. 

        12.13    Notices    

        Except
as otherwise provided in the Guarantee Agreement or the Indenture, any notice to the Grantor shall be delivered to its address mentioned hereunder or to any other address of which
the Grantee has been given written notice; any notice to the Grantee shall be delivered to the addresses set out hereunder, or to any other address of which the Grantor has been given written notice. 

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        12.14    Receipt of Notice    

        A
notice given under the present Deed is deemed to have been received by the other party at the time of its delivery, when delivered on a Business Day, or on the third
(3rd) Business Day after it has been mailed, if mailed recommended, or the day of its transmission, if transmitted by telecopy on or before 3:00 p.m. on a Business Day or on the
next Business Day if transmitted by telecopy otherwise. 

        12.15    Governing Law    

        This
Deed shall be governed by and construed in accordance with the laws of the Province of Québec, including the rules related to conflicts of laws provided for
thereunder. 

        The
rights, duties, privileges, protections, immunities and indemnities of the Grantee which are not already provided hereunder shall be those of the Trustee under the Indenture. 

        The
parties hereto refer to the provisions of the Note Documents for all other matters not already covered herein. 

        12.16    Paramountcy Clause    

        Should
there be a conflict between the provisions of this Deed and the provisions of the Indenture, the provisions of this Deed shall be interpreted and construed, if possible, so as to
avoid or minimize such conflict, but, to the extent (and only to the extent) of such conflict, this Deed shall prevail. 

13.    ENGLISH LANGUAGE  

        The parties hereto confirm that the present Deed has been drawn up in the English language at their express request. Les parties aux présentes
confirment que la présente convention a été rédigée en langue anglaise à leur demande expresse. 

[The remainder of this page is intentionally left blank]  

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        WHEREOF ACT: 

        DONE
AND PASSED in the City of Montreal, Province of Québec, on the date hereinabove set forth, under number    •    
(    •    ) of the original of the minutes of the undersigned notary. 

        AND
after the parties had declared to have taken cognizance of these presents and to have exempted the said Notary from reading them or causing them to be read, the said duly authorized
officers of the Grantor and the Grantee respectively have signed these presents, all in the presence of the said Notary who has also signed. 

        EXECUTED
THIS 1st day of November, 2002. 

	

 	
 	
ARCHIBALD CANDY (CANADA) CORPORATION
	

 	
 	
per:	
 	

/s/  VIRIGINIE ARBOUR-MAYNARD      

	

 	
 	
BNY MIDWEST TRUST COMPANY, as
 Fondé de pouvoir for the Holders of the Notes
	

 	
 	

per:	
 	

/s/  BRIGITTE GAUTHIER      

	

 	
 	

 	
 	

/s/  CATHERINE BOLDUC      
Catherine Bolduc, Notary

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QuickLinks

Exhibit 4.13

DEED OF MOVABLE HYPOTHEC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]