Exhibit 10.2

# SECOND AMENDMENT TO
TERM LOAN CREDIT AGREEMENT

This
Second Amendment to Term Loan Credit Agreement, dated as of April 27, 2006 (this
Amendment), is executed and delivered by D 56, INC., a Minnesota
corporation (D 56), DEPARTMENT 56 RETAIL, INC., a Minnesota corporation
(D 56 Retail), TIME TO CELEBRATE, INC., a Minnesota corporation
(TTC), LENOX, INCORPORATED, a New Jersey corporation
(Lenox and, together with D 56, D 56 Retail and TTC,
Borrowers and each individually, a Borrower), the
Term Loan Lenders party hereto and UBS AG, Stamford Branch, as administrative agent (in
such capacity, the Administrative Agent).

RECITALS

WHEREAS,
Borrowers, the financial institutions party thereto as lenders (the Term Loan
Lenders) and the Administrative Agent are parties to that certain Credit
Agreement, dated as of September 1, 2005, as amended by that certain First Amendment
thereto, dated as of January 23, 2006 (as such agreement may be further amended, modified
or supplemented from time to time, the Credit Agreement);

WHEREAS,
Borrowers have informed Administrative Agent and Term Loan Lenders that Borrowers desire
to sell: (i) that certain manufacturing facility located in Pomona, New Jersey (the
Pomona Facility Sale); and (ii) that certain distribution facility
located in Langhorne, Pennsylvania (the Langhorne Facility Sale, and
together with the Pomona Facility Sale, the Facilities Sales);

WHEREAS,
Administrative Agent and Term Loan Lenders are each willing to consent to the Facilities
Sales as and to the extent set forth in this Amendment and subject to the terms and
conditions set forth herein;

WHEREAS,
Borrowers, Administrative Agent and Term Loan Lenders are each desirous of entering into
an amendment to the Credit Agreement as and to the extent set forth in this Amendment and
subject to the terms and conditions set forth herein; and

WHEREAS,
this document shall constitute a Loan Document and these Recitals shall be construed as
part of this Amendment;

NOW
THEREFORE, in consideration of the premises and the mutual covenants hereinafter
contained, and for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

1.    
          Definitions. Except to the extent otherwise specified herein, capitalized
          terms used in this Amendment shall have the same meanings ascribed to them in
          the Credit Agreement.

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2.    
          Consent. Notwithstanding any provision of the Credit Agreement to the
          contrary, Administrative Agent and Term Loan Lenders hereby consent to permit
          the Borrowers to undertake the Facilities Sales, provided that 100% of the Net
          Cash Proceeds of the Facilities Sales shall be used to repay a portion of the
          Term Loan in accordance with the terms of Section 2.10(g) of the Credit
          Agreement.

3.    
          Amendments.

3.1.              Section
6.08(a) of the Credit Agreement is amended by deleting the second, third, fourth
and fifth rows of the Maximum Leverage Ratio table and replacing them with the
following:

|Test Period                                    | Leverage Ratio
|---------------------------------------------- | --------------
|Four fiscal quarters ending March 31, 2006     | 4.25 to 1.0   
|Four fiscal quarters ending June 30, 2006      | 5.50 to 1.0   
|Four fiscal quarters ending September 30, 2006 | 5.75 to 1.0   
|Four fiscal quarters ending December 31, 2006  | 2.35 to 1.0   

3.2.              Section
6.08(b) of the Credit Agreement is amended by deleting the third, fourth and
fifth rows of the Minimum Interest Coverage Ratio table and replacing them with
the following:

|Test Period                                    | Interest CoverageRatio
|---------------------------------------------- | ----------------------
|Four fiscal quarters ending June 30, 2006      | 2.60 to 1.0           
|Four fiscal quarters ending September 30, 2006 | 2.40 to 1.0           
|Four fiscal quarters ending December 31, 2006  | 2.70 to 1.0           

3.3.              Section
1.01 of the Credit Agreement is amended by deleting the definition of the term
Applicable Margin and replacing it with the following:

| | Applicable
Margin shall mean, for any day, with respect to any ABR Term Loan, 2.75%, and
with respect to any Eurodollar Term Loan, 3.75%.
| | --------------------------------------------------------------------------------------------------------------------------------------------

4.    
          Conditions Precedent to Effectiveness. The effectiveness of this
          Amendment is subject to the satisfaction of each of the following conditions
          precedent in a manner acceptable to Administrative Agent:

4.1.              Administrative
Agents receipt of counterparts of this Amendment, duly executed by
Borrowers, each of the other Loan Parties, the Administrative Agent and Required
Lenders.

4.2.              Borrowers
shall have paid to the Administrative Agent, a nonrefundable amendment fee for
the ratable account of those Lenders who consent to this Amendment, evidenced by
their timely delivery to the Administrative Agent of an executed counterpart
signature page hereto, in an amount equal to 0.15% (i.e., 15 basis points) of
the aggregate Term Loans outstanding of such consenting Lenders.

2

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4.3.              No
Default or Event of Default shall have occurred and be continuing or would
result from the effectiveness of this Amendment.

5.    
          Reference to and Effect Upon the Credit Agreement and other Loan Documents.

5.1.              The
Credit Agreement and each other Loan Document shall remain in full force and
          effect and each is hereby ratified and confirmed by Borrowers and each other
          Loan Party. Without limiting the foregoing, the Liens granted pursuant to the
          Security Documents shall continue in full force and effect and the guaranties
of           each of the Guarantors shall continue in full force and effect.

5.2.              The
effect of this Amendment shall be limited precisely as written and, except           as
set forth herein, shall not be deemed to be a consent to any waiver of any           term
or condition or to any amendment or modification of any term or condition           of
the Credit Agreement or any other Loan Document.

5.3.              Each
reference in the Credit Agreement to this Agreement,           hereunder,
hereof, herein or any other word           or words of similar
import shall mean and be a reference to the Credit Agreement           as amended hereby,
and each reference in any other Loan Document to the Credit           Agreement or any
word or words of similar import shall be and mean a reference           to the Credit
Agreement as amended hereby.

6.    
          Counterparts. This Amendment may be executed in any number of
          counterparts, each of which when so executed shall be deemed an original but all
          such counterparts shall constitute one and the same instrument. Delivery of an
          executed counterpart of a signature page to this Amendment by telecopier shall
          be as effective as delivery of a manually executed counterpart signature page to
          this Amendment.

7.    
          Costs and Expenses. As provided in Section 11.03 of the Credit Agreement,
          Borrowers shall pay the fees, costs and expenses incurred by Administrative
          Agent in connection with the preparation, execution and delivery of this
          Amendment (including, without limitation, reasonable attorneys fees).

8.    
          Governing Law. This Amendment shall be construed in accordance with and
          governed by the law of the State of New York, without regard to conflicts of law
          principles that would require the application of the laws of another
          jurisdiction.

9.    
          Headings. Section headings in this Amendment are included herein for
          convenience of reference only and shall not constitute a part of this Amendment
          for any other purpose.

[Signature Pages Follow]

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

BORROWERS:

D 56, INC.
DEPARTMENT 56 RETAIL, INC.TIME TO CELEBRATE, INC.LENOX, INCORPORATED

By: /s/ Timothy J. SchugelName:
Timothy J. SchugelTitle: Chief Operating & Financial Officer

GUARANTORS:

LENOX GROUP INC. (formerly
Department 56, Inc.)DEPARTMENT 56 SALES, INC.CAN 56, INC.FL 56 INTERMEDIATE CORP.DID,
INCORPORATED

By: /s/ Timothy J. SchugelName:
Timothy J. SchugelTitle: Chief Operating & Financial Officer

LENOX/D 56 SECOND
AMENDMENT TO TERM LOAN CREDIT AGREEMENT

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UBS AG, STAMFORD BRANCH,as
Administrative Agent

By: /s/ Irja R. OtsaName: Irja R.
OtsaTitle: Associate Director, Banking ProductsServices, U.S.

By: /s/ Pamela OhName: Pamela Oh
Title: Associate Director, Banking ProductsServices, U.S.

UBS LOAN FINANCE LLC,as a Term Loan
Lender

By: /s/ Irja R. OtsaName: Irja
R. OtsaTitle: Associate Director, Banking ProductsServices, U.S.

By: /s/ Pamela OhName: Pamela
OhTitle: Associate Director, Banking ProductsServices, U.S.

LENOX/D 56 SECOND AMENDMENT
TO TERM LOAN CREDIT AGREEMENT

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