Document:

EX-10.1

[Logo]

June 8, 2006

Enesco Group, Inc.

and each of the borrowing

Subsidiaries under the

Credit Agreement referenced

below

	 	 	 	Re: Second Amended and Restated Senior Revolving Credit Agreement dated as of
June 16, 2003, among Enesco Group, Inc., the Borrowing Subsidiaries parties thereto,
the lenders party thereto, and Bank of America, N.A. (the “Agent”), as Agent for the
Lenders, as amended (the “Credit Agreement”).

Ladies and Gentlemen:

Reference is made to the Credit Agreement. Capitalized terms used herein that are not defined
herein have the meanings given to such terms in the Credit Agreement.

Section 2.1 of the Credit Agreement provides, among other things, that, (a) if the aggregate amount
of the Loans, Letters of Credit and/or Bankers Acceptances exceed the maximum under clause (y) of
the definition of Borrowing Capacity, the Borrower shall immediately repay the Loans in an amount
sufficient for the Loans, Letters of Credit and Bankers Acceptances not to exceed the maximum under
clause (y) of the definition of Borrowing Capacity, and (b) no Loan may be requested if, after
giving effect to the making of such Loan, the aggregate amount of Loans, Letters of Credit and
Bankers Acceptances, would exceed the Borrowing Capacity. As you know, the aggregate amount of
Loans, Letters of Credit and Bankers Acceptances currently exceeds the maximum under clause (y) of
the definition of Borrowing Capacity and, accordingly, the Borrower does not have the right to
request any additional Loans at this time and the Borrower is required to immediately repay the
Loans in an amount sufficient for the Loans, Letter of Credit and Bankers Acceptances not to exceed
the maximum under clause (y) of the definition of Borrowing Capacity.

By virtue of the Borrower’s failure to immediately make such payment, a Default exists and the
Agent and the Lenders have the right to exercise all of their rights and remedies under the Credit
Agreement, the other Loan Documents, and applicable law, including without limitation, the right to
accelerate and demand payment in full at any time of the Obligations. You have requested,
notwithstanding Section 2.1 of the Credit Agreement and such Default, that the Lenders consider
making certain additional Loans to the Borrower and that the Agent and the Lenders consider waiving
such Default or forbearing, on terms and conditions to be determined, from exercising such rights
and remedies for a period of time.

The Agent and Lenders have advised you that, although we may consider making certain additional
Loans to the Borrower, on terms and conditions which must be acceptable to the Agent and the
Lenders in our sole and absolute discretion, we are not committing to do so and, if we do consider
such request, we are nevertheless not committing to continue to consider it and we are not
committing to waive the Default or to forbear from exercising any or all of our rights and remedies
at any time, even during any time when we may be discussing making additional Loans to you.

By your acceptance of this letter, you will be acknowledging and agreeing that (a) such Default
exists, (b) you have no defense, counterclaim, or right of offset or recoupment against or with
respect to your Obligations under the Credit Agreement and other Loan Documents, (c)  the Agent and
Lenders are under no obligation to consider or continue to consider Borrower’s request that
additional Loans be made or to waive any Default or to forbear from exercising at any time, without
notice to you (other than any notice required by law which the law does not permit to be waived by
you), any or all of their rights and remedies under the Credit Agreement, the other Loan Documents
and applicable law, and that the Agent and Lenders shall therefore have the right to exercise any
or all of their rights and remedies at any time, and (d) no commitment or agreement has been made
by the Agent or any Lender that is not set forth in writing in the Credit Agreement or the other
Loan Documents.

If the foregoing acknowledgements by you are correct and if all the foregoing is acceptable to
you, please sign below and promptly return this letter to the Agent.

	 	 	 
	
 
	 	Very truly yours,

Bank of America, N.A.,

as Agent and Lender

By: /s/ C. Christopher Smith
	
 
	 	 
	
 
	 	Name: C. Christopher Smith

Title: Senior Vice President
	 
	 	 
	Acknowledged and agreed to:

	 	

	Enesco Group, Inc.

By: /s/ Charles E. Sanders

	 	

	 

	 	

	Name: Charles E. Sanders

Title: Treasurer

	 	

	 	 	 
	

Acknowledged and agreed to:
N.C. Cameron & Sons Limited
By:  /s/ Charles E. Sanders

Name:  Charles E. Sanders }
Title:  Treasurer         }
Enesco International (H.K.) Limited
By:  /s/ Charles E. Sanders

Name:  Charles E. Sanders }
Title:  Director          }
Gregg Manufacturing, Inc. }
By:  /s/ Charles E. Sanders

Name:  Charles E. Sanders }
Title:  Director          }
Enesco International Ltd. }
By:  /s/ Charles E. Sanders

Name:  Charles E. Sanders }
Title:  Director          }
Enesco Limited            }
By:  /s/ Charles E. Sanders

Name:  Charles E. Sanders }
Title:  Director          }
Enesco Holdings Limited   }
By:  /s/ Charles E. Sanders

Name:  Charles E. Sanders
Title:  Director        }
Acknowledged and agreed to:
Bilston and Battersea Enamels Limited
By /s/ Charles E. Sanders

Name: Charles E. Sanders
Title:  Director
Acknowledged and agreed to:
	N.C. Cameron & Sons Limited
	By: /s/ Charles E. Sanders
	Name:	 	Charles E. Sanders
	Title:	 	Treasurer
	Enesco International (H.K.) Limited
	By: /s/ Charles E. Sanders
	Name:	 	Charles E. Sanders
	Title:	 	Director
	Gregg Manufacturing, Inc.
	By: /s/ Charles E. Sanders
	Name:	 	Charles E. Sanders
	Title:	 	Director
	Enesco International Ltd.
	By: /s/ Charles E. Sanders
	Name:	 	Charles E. Sanders
	Title:	 	Director
	Enesco Limited
	By: /s/ Charles E. Sanders
	Name:	 	Charles E. Sanders
	Title:	 	Director
	Enesco Holdings Limited
	By: /s/ Charles E. Sanders
	Name:	 	Charles E. Sanders
	Title:	 	Director
	Acknowledged and agreed to:
	Bilston and Battersea Enamels Limited
	By /s/ Charles E. Sanders
	Name: Charles E. Sanders
	Title:	 	DirectorCERTIFICATE OF DESIGNATION

CERTIFICATE OF DESIGNATION

of

SERIES C CONVERTIBLE PREFERRED STOCK

for

PROBE MANUFACTURING, INC.

PROBE MANUFACTURING, INC., a Nevada corporation (the “Company”), pursuant to the appropriate provisions of Nevada Revised Statutes, does hereby make this Certificate of Designation and does hereby state and certify that pursuant to the authority expressly vested in the Board of Directors of the Company by the Articles of Incorporation of the Company, the Board of Directors, without any shareholder action, which action was not required to be taken, duly adopted the following resolutions, which resolutions remain in full force and effect as of the date hereof:

RESOLVED, that, pursuant to Article Three, Section 2 of the Articles of Incorporation of the Company, the Board of Directors hereby authorizes the issuance of, and fixes the designation and preferences and relative, participating, optional, and other special rights, and qualifications, limitations and restrictions, of a series of Preferred Stock consisting of Fifteen Thousand (15,000) shares, no par value, to be designated “Series C Convertible Preferred Stock” (the “Series C Stock”).

RESOLVED, that each share of the Series C Stock shall rank equally in all aspects and shall be subject to the following terms and provisions:

1.

Preference on Liquidation.   In the event of any voluntary or involuntary liquidation, distribution of assets (other than the payment of dividends), dissolution or winding-up of the Company, Series C Stock shall have preferential rights to the Company’s common stock (the “Common Stock”) whereby Series C Stock shall get two times (2x) return on its capital.  Once Series C Stock has recouped its two times (2x) return on capital then Series C Stock shall participate, on a pro rata basis, based on the number of shares of the Company’s common stock (the “Common Stock”) into which the Series C Stock are convertible at the time of the liquidation, distribution of assets, dissolution or winding-up.

2.

Voting Rights.  The Series C Stock shall have voting rights and voting will be on an as converted basis, with class votes for the election of directors, any transaction in which control of the Company is transferred in which the per share price consideration received by Purchaser is less than three (3) times the Purchase Price, the sale of the Company of all or substantially all of its assets, liquidation or winding up of the Company and any amendment to the Company’s by-laws or Articles of Incorporation in a manner adverse to Series C Stock.

3.

Conversion.  The holders of the Series C Stock shall have the following rights with respect to the conversion of the Series C Stock into shares of Common Stock (the “Conversion Rights”):

(a)

Conversion.  Subject to and in compliance with the provisions of this Section 3, any shares of Series C Stock may, at any time, at the option of the holder, be converted into fully paid and non-assessable shares of Common Stock (a “Conversion”).  Each share of Series C Stock shall be converted into a number of shares of Common Stock that is equal to each share being divided by the average of the 3 lowest intraday bids in the twenty (20) days prior to conversion or $0.10, which ever is greater, multiplied by 100 (1 divided by x, multiplied by 100), or 125 shares per Series C, whichever is greater. 

(b) Mechanics of the Conversion.  Upon a Conversion, the holder of Series C Stock shall surrender the applicable certificate or certificates therefore, duly endorsed, at the office of the Company or any transfer agent for the Series C Stock, and shall give written notice to the Company, of the Conversion and the number of shares of Series C Stock being converted.  Thereupon, the Company shall promptly issue and deliver to such holder a certificate or certificates for the number of shares of Common Stock to which such holder is entitled.  A Conversion shall be deemed to have been made at the close of the first business day after the date both notice has been given and the applicable share certificate or certificates have been delivered to the Company, provided, however, if the foregoing occurs on a business day, before the close of business, the Conversion shall be deemed to have occurred at the close of business on that day (the “Conversion Date”).  The person entitled to receive the shares of Common Stock issuable upon a Conversion shall be treated for all purposes as the record holder of such shares of Common Stock on such date.

(c)

Adjustment for Reclassification, Exchange and Substitution.  If at any time or from time to time after the Common Stock issuable upon the conversion of the Series C Stock is changed into the same or a different number of shares of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a transaction provided for elsewhere in this Section 2), in any such event each holder of Series C Stock shall have the right thereafter to convert such stock into the kind and amount of stock and other securities and property receivable upon such recapitalization, reclassification or other change by holders of the maximum number of shares of Common Stock into which such shares of Series C Stock could have been converted immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein or with respect to such other securities or property by the terms thereof.

(d)

Reorganizations, Mergers, Consolidations or Sales of Assets.  If at any time or from time to time after the date of issuance of the Series C Stock, there is a capital reorganization of the Common Stock (other than a transaction provided for elsewhere in this Section 2), as a part of such capital reorganization, provision shall be made so that the holders of the Series C Stock shall thereafter be entitled to receive upon conversion of the Series C Stock the number of shares of stock or other securities or property of the Company to which a holder of the number of shares of Common Stock deliverable upon conversion would have been entitled on such capital reorganization, subject to adjustment in respect of such stock or securities by the terms thereof.  

(e)  

Notices of Record Date.  Upon (i) any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, or (ii) any sale of the Company, capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company, or any voluntary or involuntary dissolution, liquidation or winding up of the Company, the Company shall mail to each holder of Series C Stock at least twenty (20) days prior to the record date specified therein a notice specifying (A) the date on which any such record is to be taken for the purpose of such dividend or distribution and a description of such dividend or distribution, (A) the date on which any such sale of the Company, reorganization, reclassification, recapitalization, dissolution, liquidation or winding up is expected to become effective, and (C) the date, if any, that is to be fixed as to when the holders of record of Common Stock (or other securities) shall be entitled to exchange their shares of Common Stock (or other securities) for securities or other property deliverable upon such sale of the Company, reorganization, reclassification, recapitalization, dissolution, liquidation or winding up.

(f)

Fractional Shares.  Any fractional share of Common Stock resulting from the conversion of the Series C Stock shall be rounded up to the nearest whole share.  

(g)

Reservation of Stock Issuable Upon Conversion.  The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the shares of the Series C Stock, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of the Series C Stock.  If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the Series C Stock, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.

(h)

Notices.  Any notice required by the provisions of this Section 2 shall be in writing and shall be deemed effectively given:  (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient; if not, then on the next business day, (iii) three (3) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All notices shall be addressed to each holder of record at the address of such holder appearing on the books of the Company.

(i)

No Impairment.  The Company will not, by amendment of its Articles of Incorporation or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company but will at all times in good faith assist in the carrying out of all the provisions of this Section 2 and in the taking of all such action as may be necessary or appropriate in order to protect the Conversion Rights of the holder of the Series C Stock against impairment.

4.

Redemption.

(a)

At any time, the Company may, in its sole discretion, redeem some or all of the outstanding shares of Series C Stock at a “Redemption Price” equal to the greater $120.00 per share for the first year from the date of this Certificate and after which the Redemption Price shall increase by twelve percent (12%) per year until all outstanding shares of Series C have been redeemed.  

(b)

To redeem Series C Stock, the Company, at least five (5) days prior to the date on which it desires to redeem such stock (the “Redemption Date”), shall send the applicable holder of Series C Stock a notice of the redemption, provided, however, that failure to give such notice or any defect therein or in the mailing thereof shall not affect the validity of the proceedings for the redemption of any shares of Series C Stock.  Such notice shall state:  (i) the Redemption Date; (ii) the Redemption Price; and (iii) the number of shares of Series C Stock to be redeemed.  

(c)

Upon surrender, in accordance with said notice, of the certificates for any shares so redeemed (properly endorsed or assigned for transfer, if the Company shall so require), such shares shall be redeemed by the Company at the Redemption Price.  In case fewer than all the shares represented by any such certificate are redeemed, a new certificate or certificates shall be issued representing the unredeemed shares without cost to the holder thereof.

(d)

All shares of Series C Stock redeemed pursuant to this Section 4 shall be restored to the status of authorized and unissued shares of Series C Stock, without designation as to Series and may thereafter be reissued as shares of any series of preferred stock other than shares of Series C Stock.

[Signatures on following page]

1 of 5

PROBECertificate of Designation for Series C Preferred Stock, v. 1

This Certificate of Designation has been executed and adopted on behalf of the Company as of May 25, 2006

PROBE MANUFACTURING, INC.

By:  /s/ Reza Zarif

        Reza Zarif, Chief Executive Officer

2 of 5

PROBE Certificate of Designation for Series C Preferred Stock, v. 1

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