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                                                                   EXHIBIT 10.58

                              PRIORITIES AGREEMENT

THIS AGREEMENT dated as of the 14th day of December, 2001.

B E T W E E N:

                                            BANK OF NOVA SCOTTIA, a Canadian
                                            chartered bank, having a branch at
                                            40 King Street West, Toronto,
                                            Ontario

                                            (hereinafter referred to as the
                                            "Bank")

                                                              OF THE FIRST PART;

                                            -and-

                                            ROYNAT CAPITAL INC., a corporation
                                            incorporated under the laws of
                                            Canada and having a place of
                                            business in the Province of Ontario
                                            at 40 King Street West, 26th Floor,
                                            Toronto, Ontario, M5H 1H1

                                            (hereinafter referred to as
                                            "RoyNat")

                                                             OF THE SECOND PART;

                                            -and-

                                            REGAL GREETINGS & GIFTS COMPANY, a
                                            corporation Incorporated under the
                                            laws of the Province of Ontario,
                                            having its chief executive office in
                                            Toronto, Ontario

                                            (hereinafter referred to as the
                                            "Company")

                                                              OF THE THIRD PART;

              WHEREAS the Company has executed various security agreements
including a general security agreement (the "General Security Agreement") dated
as of December 14, 2001 in favour of the Bank, a Financing Statement for which
was registered under the PPSA as No. granting the Bank a security interest in
the undertaking of the Company and all of the Company's assets, including Goods,
Chattel Paper, Documents of Title, Instruments, Intangibles, Securities,
Inventory, Equipment and Debts, both present and future, as more particularly
therein described; and

              WHEREAS the General Security Agreement and any other security
which may be held by the Bank now or hereafter on the property and assets of the
Company for its existing indebtedness and any future indebtedness of the Company
to the Bank are sometimes herein collectively referred to as the "Bank
Security"; and

              WHEREAS RoyNat has agreed, subject to certain conditions, to
provide financing to the Company, such financing to be secured by a debenture
(the "RoyNat Debenture") constituting:

       (a)    a fixed and specific mortgage and charge of and on all real and
              immoveable property and all furniture, machinery, equipment,
              vehicles, accessories and tangible personal property other than
              Inventory and Equipment now owned or hereafter acquired by the
              Company, together with any proceeds of sale or disposition
              thereof; and

       (b)    a floating charge over its undertaking and all its other property
              and assets, both present and future; and

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                                      -2-

              WHEREAS the RoyNat Debenture and any other security which may be
held by RoyNat now or hereafter on the property and assets of the Company for
this or any future financing provided by the RoyNat are sometimes herein
collectively referred to as the "RoyNat Security"; and

              WHEREAS the parties hereto have agreed to enter into this
Agreement in order to set out the respective priorities of the Bank Securities
and the RoyNat Security.

              NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of
the premises and other good and valuable consideration, the parties hereto
hereby covenant, undertake, declare and agree as follows:

ARTICLE I. - CONSENT

1.1    The Bank hereby acknowledges its consent to the creation and issue by the
Company to RoyNat of the RoyNat Security and to the incurring by the Company of
the indebtedness evidenced thereby and that the creation, issue, existence and
incurring of the same does not constitute a default or event of default under
the Bank Security.

1.2    RoyNat hereby acknowledges its consent to the creation and issue by the
Company to the Bank of the Bank Security and to the incurring by the Company of
the indebtedness evidenced thereby and that the creation, issue, existence and
incurring of the same does not constitute a default or event of default under
the RoyNat Security.

ARTICLE 2. - SUBORDINATION

2.1.   The Bank and RoyNat agree the RoyNat Security is hereby postponed and
subordinated in all respects to the security constituted by the Bank Security to
the extent of the Borrower's indebtedness to the Bank from time to time to a
maximum principal amount of twenty-three million ($23,000,000) dollars plus all
accrued interest thereon and all costs, charges and expenses incurred by the
Bank in connection therewith (the "BANK DEBT"), such that all payments,
recoveries and proceeds of the assets of the Company shall be firstly secured in
favour of the Bank, save as to any policy of life insurance which shall be
specifically assigned to RoyNat, which RoyNat shall hold under the RoyNat
security in first priority.

2.2.   The subordinations and postponements contained herein shall apply in all
events and circumstances regardless of:

       (a)    the date of execution, attachment, registration or perfection of
              any security interest held by the Bank or RoyNat; or

       (b)    the date of any advance or advances made to the Company by the
              Bank or RoyNat; or

       (c)    the date of default by the Company under any of the Bank Security
              or the RoyNat Security or the dates of crystallization of any
              floating charges held by the Bank or RoyNat; or

       (d)    any priority granted by any principle of law or any statute.

2.3.   Any insurance proceeds, and any proceeds of any nature or kind, arising
for any reason, received by the Company or by the Bank or RoyNat in respect of
the collateral charged by the Bank Security or the RoyNat Security shall be
dealt with according to the preceding provisions hereof as though such insurance
proceeds or proceeds were paid or payable as proceeds of realization of the
collateral for which they compensate; save and except that the interest of
RoyNat held under any specifically assigned policy of life insurance shall be
held by RoyNat under the RoyNat Security as to first and prior security interest
and the proceeds and payments thereof shall be firstly paid to RoyNat.

2.4.   If any of collateral which is subject to the Bank Security or the RoyNat
Security is validly claimed in priority by a trustee in bankruptcy, or the Bank
Security or the RoyNat Security otherwise is found by a court of competent
jurisdiction, to be unenforceable, invalid, unregistered or unperfected, then
the foregoing provisions of

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                                      -3-

this Article 2 shall not apply to such security to the extent that such security
is so claimed or found to be unenforceable, invalid, unregistered or unperfected
as against a third party unless the secured party shall be diligently contesting
such claim or appealing such decision and has provided the other secured party
with a satisfactory indemnity as to any loss of priority that may be caused by
the priorities herein.

2.5.   Each of the parties hereto shall permit any of the other parties hereto
and their employees, agents and contractors, access at all reasonable times to
any property and assets of the Company upon which it has a prior charge or
security interest in accordance with the terms hereof and to permit such other
party to remove such property and assets from the premises of the Company at all
reasonable times without interference, provided that such other party shall
promptly repair any damage caused to the premises by the removal of any such
property or assets.

2.6    Each of the Bank and RoyNat agree that they will use their best efforts
to give prompt written notice to the other secured party of any action taken by
them against the Company to enforce their security, and will provide a copy of
any notice or demand provided to the Company to the other of them. Such notice
may be given prior to or forthwith after taking such action, but failure to give
such notice will not give the Bank of RoyNat any cause of action or right to
damages or other remedy against one another.

2.7    Each of the Bank and RoyNat agree that if the Bank provides written
notice to RoyNat of a material default by the Company under the Bank Security,
which default the Bank shall advise RoyNat is such that the Bank intends to
provide notice of default to the Company ("Bank Default Notice"), RoyNat shall
cease to receive and will postpone all payments due on the indebtedness to
RoyNat on the RoyNat Debt until the earliest of (i) the Bank advising that the
default has been cured; or (ii) the Bank Debt is repaid in full; or (iii) 90
days after the giving of the notice by the Bank to RoyNat. Each of the Bank and
RoyNat agree that if the Bank causes acceleration of the Bank Debt and starts
realization against the assets of the Company after default by the Company under
the Bank Security, subject to RoyNat's rights under Section 2.8 hereof and to
RoyNat's rights, as provided for in Sections 2.1 and 2.3 hereof, in any policy
of life insurance which is specifically assigned to RoyNat and which RoyNat
holds under the RoyNat Security in first priority, RoyNat shall cease to receive
and will postpone all payments due on the indebtedness to RoyNat on the RoyNat
debt until the earliest of (i) the Bank advising that the default has been
cured; or (ii) the Bank Debt is repaid in full. Prior to the provision of a Bank
Default Notice by the Bank to RoyNat, the Company may pay to RoyNat the
regularly scheduled payments under the RoyNat Debenture, without amendment and
without acceleration. Any funds received by RoyNat contrary to the terms and
priorities of this agreement shall be received and held in trust for the Bank,
and promptly remitted to the Bank.

2.8    Neither RoyNat nor any person on its behalf shall deliver any enforcement
notice or make any demand under, accelerate, sue in respect of, or realize,
exercise or enforce any right, entitlement, power or remedy under or in respect
of or otherwise take any action with respect to any RoyNat Security unless and
until either (a) the Bank Debt has been paid in full in cash and all agreements
or obligations on the part of the Bank to make further financial accommodation
available to the Company shall have been terminated or (b) a standstill period
of ninety (90) days from the date of a notice provided by RoyNat to the Bank
that there is a material default under the RoyNat Security and RoyNat intends to
exercise its rights in relation thereto (the "STANDSTILL PERIOD") has expired.
Notwithstanding the foregoing and Section 2.7 hereof, the provisions of this
section prohibiting acceleration, demand and the delivery of a notice of
intention to enforce security under the BANKRUPTCY AND INSOLVENCY ACT (Canada)
shall not apply at any time after any portion of the Bank Debt has been
accelerated or the applicable Standstill Period has expired, whereupon RoyNat
may exercise its rights as secured lender but subject to the priority of the
security interest of the Bank Security, including, but not limited to, delivery
of any enforcement notice or making any demand under, accelerating, suing in
respect of, or realizing, exercising or enforcing any right, entitlement, power
or remedy under or in respect of or otherwise taking any action with respect to
any RoyNat Security.

ARTICLE 3. - COVENANTS OF COMPANY

3.1    The Company hereby confirms to and agrees with the Bank and RoyNat that:

       (a)    so long as any of the indebtedness of the Company herein referred
              to remains outstanding, it shall stand possessed of its assets so
              charged for the Bank and for RoyNat in accordance with their
              respective interests and priorities as herein set out;

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                                      -4-

       (b)    none of the provisions of this Agreement create any rights in
              favour of the Company or affect the manner in which the Bank or
              RoyNat or any receiver and manager appointed by them over the
              property, assets and undertaking of the Company exercises its
              rights under the Bank Security and the RoyNat Security; and

       (c)    the Company shall promptly provide the Bank or RoyNat upon request
              with any information which either reasonably requests about the
              business and affairs of the Company.

ARTICLE 4. - GENERAL

4.1    From time to time upon request therefore the Bank and RoyNat may advise
each other of any information which it may have relating to the affairs of the
Company, including its business and financial affairs and the particulars of the
indebtedness and liability of the Company to each other and all security held by
each therefor. The Company hereby consents to any such exchange of information.

4.2    Neither the Bank nor RoyNat shall take any action to defeat the
priorities set forth in this Agreement including taking any steps or actions to
challenge or question the security of the other. Each of the Bank and RoyNat
hereby waives any right the other may have to require the other to marshall in
its favour.

4.3    Each of the Bank, RoyNat and the Company shall do, perform, execute and
deliver all acts, deeds and documents as may be necessary from time to time to
give full force and effect to the intent of this Agreement; provided, however,
that no consent of the Company shall be necessary to any amendment of the terms
hereof by the Bank and RoyNat unless the interests of the Company are directly
affected thereby.

4.4.   This Agreement may be executed in several counterparts, each of which
when so executed shall be deemed to be an original and such counterparts
together shall constitute one and the same instrument and shall be effective as
of the formal date hereof.

4.5.   This Agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective successors and assigns.

4.6.   Where there is any conflict between the provisions in this Agreement
regarding the priority of the security of the parties hereto and similar
provisions in the RoyNat Security, including section 6 of the RoyNat Debenture,
the provisions of this Agreement will prevail.

4.7.   Neither the Bank nor RoyNat shall assign all or part of any of its Bank
Security or RoyNat Security, as the case may be, without first obtaining a
written agreement from the assignee under which the assignee agrees to be bound
by the terms of this Agreement.

4.8.   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.

4.9.   The Agreement applies to all present and future property of the Company.

4.10.  The Bank and RoyNat, with the consent of the Company hereby given, shall
provide to the other, upon request of the other, information as to the
collateral, security and indebtedness of the Customer.

                        THE NEXT PAGE IS THE SIGNING PAGE

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              IN WITNESS WHEREOF the parties hereto have executed this Agreement
under the hands of their duly authorized officers.

                                           BANK OF NOVA SCOTIA

                                           By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                           -------------------------------------
                                           Name:
                                           Title:
                                           I/We have authority to bind the Bank.

                                           ROYNAT CAPITAL INC.

                                           By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                           By:
                                           -------------------------------------
                                           Name:
                                           Title:
                                           I/We have authority to bin the
                                           Corporation.

                                           REGAL GREETINGS AND GIFTS CORPORATION
                                           By:
                                           -------------------------------------
                                           Name:
                                           Title:
                                           I have authority to bind the
                                           Corporation.<Page>

                                                                   EXHIBIT 10.59

                             GENERAL SECURITY AGREEMENT

1.     REGAL GREETINGS & GIFTS CORPORATION,  of   7035 ORDAN DRIVE, MISSISSAUGA,
                                                  ONTARIO, L5T 1T1
       -----------------------------------        ------------------------------
         (NAME OF CUSTOMER)                          (ADDRESS OF CUSTOMER)

--------------------------------------------------------------------------------
(the "CUSTOMER") for valuable consideration grants, assigns, transfers, sets
over, mortgages and charges to THE BANK OF NOVA SCOTIA, at its branch located at

44 King Street West, Toronto, Ontario, M5H 1H1
--------------------------------------------------------------------------------

                               (ADDRESS OF BRANCH)

(the "Bank") as and by way of a fixed and specific mortgage and charge, and
grants to the Bank, a security interest in the present and after acquired
undertaking and property (other than consumer goods) of the Customer including
all the right, title, interest and benefit which the Customer now has or may
hereafter have in all property of the kinds hereinafter described (the
"Collateral"):

(a)    all goods comprising the inventory of the Customer including but not
       limited to goods held for sale or lease or that have been leased or
       consigned to or by the Customer or furnished or to be furnished under a
       contract of service or that are raw materials, work in process or
       materials used or consumed in a business or profession or finished goods
       and timber cut or to be cut, oil, gas, hydrocarbons, and minerals
       extracted or to be extracted, all livestock and the young and unborn
       young thereof and all crops;

(b)    all goods which are not inventory or consumer goods, including but not
       limited to furniture, fixtures, equipment, machinery, plant, tools,
       vehicles and other tangible personal property, whether described in
       Schedule `A' hereto or not;

(c)    all accounts, including deposit accounts in banks, credit unions, trust
       companies and similar institutions, debts, demands and choses in action
       which are now due, owing or accruing due or which may hereafter become
       due, owing or accruing due to the Customer, and all claims of any kind
       which the Customer now has or may hereafter have including but not
       limited to claims against the Crown and claims under insurance policies;

(d)    all chattel paper;

(e)    all warehouse receipts, bills of lading and other documents of title,
       whether negotiable or not;

(f)    all instruments, shares, stock, warrants, bonds, debentures, debenture
       stock or other securities, money, letters of credit, advices of credit
       and cheques;

(g)    all intangibles including but not limited to contracts, agreements,
       options, permits, licenses, consents, approvals, authorizations, orders,
       judgments, certificates, rulings, insurance policies, agricultural and
       other quotas, subsidies, franchises, immunities, privileges, and benefits
       and all goodwill, patents, trade marks, trade names, trade secrets,
       inventions, processes, copyrights and other industrial or intellectual
       property;

(h)    with respect to the personal property described in subparagraphs (a) to
       (g) inclusive, all books, accounts, invoices, letters, papers, documents,
       disks, and other records in any form, electronic or otherwise, evidencing
       or relating thereto; and all contracts, securities, instruments and other
       rights and benefits in respect thereof;

(i)    with respect to the personal property described in subparagraphs (a) to
       (h) inclusive, all parts, components, renewals, substitutions and
       replacements thereof and all attachments, accessories and increases,
       additions and accessions thereto; and

(j)    with respect to the personal property described in subparagraphs (a) to
       (l) inclusive, all proceeds therefrom (other than consumer goods),
       including personal property in any form of fixtures derived directly or
       indirectly from any dealing with such property or proceeds therefrom, and
       any insurance or other payment as indemnity or compensation for loss of
       or damage to such property or any right to such payment, and any payment
       made in total or partial discharge or redemption of an intangible,
       chattel paper, instrument or security; and

In this Agreement, the words, "goods", "consumer goods", "account", "account
debtor", "inventory", "groups", "equipment", "fixtures", "chattel paper",
"document of title", "instrument", "money", "security", or "securities",
"intangible", "receiver", "proceeds" and "accessions" shall have the same
meanings as their defined meanings where such words are defined in the Personal
Property Security Act of the province or territory in which the Branch of the
Bank mentioned in paragraph 1 is located, such Act, including any amendments
thereto, being referred to in this Agreement as "the PPSA". In this Agreement,
"Collateral" shall refer to "Collateral or any item thereof".

2.     The fixed and specific mortgages and charges and the security interest
granted under this Agreement secure payment and performance of all obligations
of the Customer to the Bank, including but not limited to all debts and
liabilities, present or future, direct or indirect, absolute or contingent,
matured or not, at any time owning by the Customer to the Bank in any currency
or remaining unpaid by the Customer to the Bank in any currency, whether arising
from dealings between the Bank and the Customer or from other dealings or
proceedings by which the Bank may be or become in any manner whatever a creditor
of the Customer and wherever incurred, and whether incurred by the Customer
alone or with another or others and whether as principal or surety, including
all interest, commissions, legal and other costs, charges and expenses (the
"Obligations").

3.     The Customer hereby represents and warrants to the Bank that:

(a)    all of the Collateral is, or when the Customer acquires any right, title
       or interest therein, will be the sole property of the Customer free and
       clear of all security interests, mortgages, charges, hypothecs, liens or
       other encumbrances except as disclosed by the Customer to the Bank in
       writing;

(b)    the Collateral insofar as it consists of goods (other than inventory
       enroute from suppliers or enroute to customers or on lease or
       consignment) will be kept at the locations specified in Schedule "B"
       hereto or at such other locations as the Customer shall specify in
       writing to the Bank and subject to the provisions of paragraph 4(j) none
       of the Collateral shall be moved therefrom without the written consent of
       the Bank;

(c)    the Customer's chief executive address is located at the address
       specified in paragraph 1;

(d)    none of the Collateral consists of consumer goods; and

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                                       2

(e)    this Agreement has been properly authorized and constitutes a legally
       valid and binding obligation of the Customer in accordance with its
       terms.

4.     The Customer hereby agrees that:

(a)    the Customer shall diligently maintain, use and operate the Collateral
       and shall carry on and conduct its business in a proper and efficient
       manner so as to preserve and protect the Collateral and the earnings,
       incomes, rents, issues and profits thereof;

(b)    the Customer shall cause the Collateral to be insured and kept insured to
       the full insurable value thereof with reputable insurers against loss or
       damage by fire and such other as the Bank may reasonably require and
       shall maintain such insurance with loss if any payable to the Bank and
       shall lodge such policies with the Bank;

(c)    the Customer shall pay all rents, taxes, levels, assessments and
       government fees or dues lawfully levied, assessed or imposed in respect
       of the Collateral or any part thereof as and when the same shall become
       due and payable, and shall exhibit to the Bank, when required, the
       receipts and vouchers establishing such payment;

(d)    the Customer shall duly observe and conform to all valid requirements of
       any governmental authority relative to any of the Collateral and all
       covenants, terms and conditions upon or under which the Collateral is
       held;

(e)    the Customer shall keep proper books of account in accordance with sound
       accounting practice, shall furnish to the Bank such financial information
       and statements and such information and statements relating to the
       Collateral as the Bank may from time to time require, and the Customer
       shall permit the Bank or its authorized agents at any time at the expense
       of the Customer to examine all books of account and other financial
       records and reports relating to the Collateral and to make copies thereof
       and take extracts therefrom;

(f)    the Customer shall furnish to the Bank such information with respect to
       the Collateral and the insurance thereon as the Bank may from time to
       time require and shall give written notice to the Bank of all litigation
       before any court, administrative board or other tribunal affecting the
       Customer or the Collateral;

(g)    the Customer shall defend the title to the Collateral against all persons
       and shall keep the Collateral free and clear of all security interests,
       mortgages, charges, liens and other encumbrances except for those
       disclosed to the Bank in writing prior to the execution of this Agreement
       or hereafter approved in writing by the Bank prior to their creation or
       assumption;

(h)    the Customer shall, upon request by the Bank, execute and deliver all
       such financing statements, certificates, further assignments and
       documents and do all such further acts and things as may be considered by
       the Bank to be necessary or desirable to give effect to the intent of
       this Agreement and the Customer hereby irrevocably constitutes and
       appoints the Manager or Acting Manager for the time being of the Branch
       of the Bank mentioned in paragraph 1, the true and lawful attorney of the
       Customer, with full power of substitution, to do any of the foregoing in
       the name of Customer whenever and wherever the Bank may consider it to be
       necessary or desirable;

(i)    the Customer shall promptly notify the Bank in writing of any event which
       occurs that would have a material adverse effect upon the Collateral or
       upon the financial condition of the Customer and immediately upon the
       Customer's acquisition of rights in any vehicle, mobile home, trailer,
       boat, aircraft or aircraft engine, shall promptly provide the Bank with
       full particulars of such collateral; and

(j)    the Customer will not change its name or the location of its chief
       executive office or place of business or sell, exchange, transfer, assign
       or lease or otherwise dispose of or change the use of the Collateral or
       any interest therein or modify, amend or terminate any chattel paper,
       document of title, instrument, security or intangible, without the prior
       written consent of the Bank, except that the Customer may, until an event
       of default set out in paragraph 9 occurs, sell or lease inventory in the
       ordinary course of the Customer's business.

5.     Until an event of default occurs, the Customer may use the Collateral in
       any lawful manner not inconsistent with this Agreement, but the Bank
       shall have the right at any time and from time to time to verify the
       existence and state of the Collateral in any manner the Bank may consider
       appropriate and the Customer agrees to furnish all assistance and
       information and to perform all such acts as the Bank may reasonably
       request in connection therewith, and for such purpose shall permit the
       Bank or its agents access to all places where Collateral may be located
       and to all premises occupied by the Customer to examine and inspect the
       Collateral and related records and documents.

6.     Before or after an event of default occurs, the Bank may give notice to
       any or all account debtors of the Customer and to any or all persons
       liable to the Customer under an instrument to make all further payments
       to the Bank and any payments or other proceeds of Collateral received by
       the Customer from account debtors or from any persons liable to the
       Customer under an instrument, whether before or after such notice is
       given by the Bank, shall be held by the Customer in trust for the Bank
       and paid over to the Bank upon request. The Bank may take control of all
       proceeds of Collateral and may apply any money taken as Collateral to the
       satisfaction of the Obligations secured hereby. The Bank may hold as
       additional security any increase or profits, except money, received from
       any Collateral in the Bank's possession, and may apply any money received
       from such Collateral to reduce the Obligations secured hereby and may
       hold any balance as additional security for such part of the Obligations
       as may not yet be due, whether absolute or contingent. The Bank will not
       be obligated to keep any Collateral separate or identifiable. In the case
       of any instrument, security or chattel paper comprising part of the
       Collateral, the Bank will not be obligated to take any necessary or other
       steps to preserve rights against other persons.

7.     The Bank may have any Collateral comprising instruments, shares, stocks,
       warrants, bonds, debentures, debenture stock or other securities,
       registered in its name or in the name of its nominee and shall be
       entitled but not bound or required to vote in respect of such Collateral
       at any meeting at which the holder thereof is entitled to vote and,
       generally, to exercise any of the rights which the holder of such
       Collateral may at any time have; but the Bank shall not be responsible
       for any loss occasioned by the executive of any of such rights or by
       failure to exercise the same within the time limited for the exercise
       thereof.

8.     Upon the Customer's failure to perform any of its duties hereunder, the
       Bank may, but shall not be obligated to, to perform any or all of such
       duties, without waiving any rights to enforce this Agreement, and the
       Customer shall pay to the Bank, forthwith upon written demand therefor,
       an amount equal to the costs, fees and expenses, incurred by the Bank in
       so doing plus interest thereon from the date such costs, fees and
       expenses are incurred until paid at the rate of 3% per annum over the
       Prime Lending Rate of the Bank in effect from time to time. The "Prime
       Lending Rate of the Bank" means the variable per annum, reference rate of
       interest as announced and adjusted by the Bank from time to time for
       loans made by the Bank of Canada in Canadian dollars.

9.     The happening of any one or more of the following events shall constitute
       an event of default under this Agreement:

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                                       3

(a)    if the Customer does not pay when due any of the Obligations;

(b)    if the Customer does not perform any provisions of this Agreement or of
       any other agreement to which the Customer and the Bank are parties;

(c)    if the Customer ceases or threatens to cease to carry on its business,
       commits an act of bankruptcy, becomes insolvent, makes an assignment or
       proposal under the Bankruptcy Act, takes advantage of provisions for
       relief under the Companies Creditors Arrangement Act or any other
       legislation for the benefit of insolvent debtors, transfers all or
       substantially all of its assets, or proposes a compromise or arrangement
       to its creditors;

(d)    if the Customer enters into any reconstruction, reorganization,
       amalgamation, merger or other similar arrangement;

(e)    if any proceeding is taken with respect to a compromise or arrangement,
       or to have the Customer declared bankrupt or wound up, or if any
       proceeding is taken, whether in court or under the terms of any agreement
       or appointment in writing, to have a receiver appointed of any Collateral
       or if any encumbrance becomes enforceable against any Collateral;

(f)    if any execution, sequestration or extent or any other process of any
       court becomes enforceable against the Customer if any distress or
       analogous process is levied upon any Collateral;

(g)    if the Bank in good faith believes and has commercially reasonable
       grounds for believing that the prospect of payment or performance of any
       Obligation is or is about to be impaired or that any Collateral is or is
       about to be in danger of being lost, damaged, confiscated or placed in
       jeopardy.

10.    If an event of default occurs, the Bank may withhold any future advances
and may declare that the Obligations shall immediately become due and payable in
full, and the Bank may proceed to enforce payment of the Obligations and the
Customer and the Bank shall have, in addition to any other rights and remedies
provided by law, the rights and remedies of a debtor and a secured party
respectively under the PPSA and other applicable legislation and those provided
by this Agreement. The Bank may take possession of the Collateral, enter upon
any premises of the Customer, otherwise enforce this Agreement and enforce any
rights of the Customer in respect of the Collateral by any manner permitted by
law and may use the Collateral in the manner and to the extent that the Bank may
consider appropriate and may hold, insure, repair, process, maintain, protect,
preserve, prepare for disposition and dispose of the same and may require the
Customer to assemble the Collateral and deliver or make the Collateral available
to the Bank at a reasonably convenient place designated by the Bank.

11.    Where required to do so by the PPSA, the Bank shall give to the Customer
the written notice required by the PPSA of any intended disposition of the
Collateral by serving such notice personally on the Customer or by mailing such
notice by registered mail to the last known post office address of the Customer
or by any other method authorized or permitted by the PPSA.

12.    If an event of default occurs, the Bank may take proceedings in any court
of competent jurisdiction for the appointment of a receiver (which term shall
include a receiver and manager) of the Collateral or may by appointment in
writing appoint any person to be a receiver of the Collateral and may remove any
receiver so appointed by the Bank and appoint another in his stead; and any such
receiver appointed by instrument in writing shall, to the extent permitted by
applicable law or to such lesser extent permitted, have all of the rights,
benefits and powers of the Bank hereunder or under the PPSA or otherwise and
without limitation have power (a) to take possession of the Collateral, (b) to
carry on all or any part or parts of the business of the Customer, (c) to borrow
money required for the seizure, retaking, repossession, holding, insurance,
repairing, processing, maintaining, protecting, preserving, preparing for
disposition, disposition of the Collateral and for any other enforcement of this
Agreement or for the carrying on of the business of the Customer on the security
of the Collateral in priority to the security interest created under this
Agreement, and (d) to sell, lease or otherwise dispose of the whole or any part
of the Collateral at public auction, by public tender or by private sale, lease
or other disposition either for cash or upon credit, at such time and upon such
terms and conditions as the receiver may determine provided that if any such
disposition involves deferred payment the Bank will not be accountable for and
the Customer will not be entitled to be credited with the proceeds of any such
disposition until the monies therefore are actually received; and further
provided that any such receiver shall be deemed the agent of the Customer and
the Bank shall not be in any way responsible for any misconduct or negligence of
any such receiver.

13.    Any proceeds of any disposition of any Collateral may be applied by the
Bank to the payment of expenses incurred or paid in connection with seizing,
repossessing, retaking, holding, repairing, processing, insuring, preserving,
preparing for disposition and disposing of the Collateral (including reasonable
solicitor's fees and legal expenses and any other reasonable expenses), and any
balance of such proceeds may be applied by the Bank towards the payment of the
Obligations in such order of application as the Bank may from time to time
effect. All such expenses and all amounts borrowed on the security of the
Collateral under paragraph 12 shall bear interest at the rate of 3% per annum
over the Prime Lending Rate of the Bank in effect from time to time, shall be
payable by the Customer upon demand and shall be Obligations under this
Agreement, if the disposition of the Collateral fails to satisfy the Obligations
secured by this Agreement and the expenses incurred by the Bank, the Customer
shall be liable to pay any deficiency to the Bank on demand.

14.    The Customer and the Bank further agree that:

(a)    the Bank may grant extensions of time and other indulgences, take and
       give up security, accept compositions, grant releases and discharges and
       otherwise deal with the Customer, debtors of the Customer, sureties and
       others and with the Collateral or other security as the Bank may see fit
       without prejudice to the liability of the Customer and the Bank's rights
       under this Agreement;

(b)    this Agreement shall not be considered as satisfied or discharged by any
       intermediate payment of all or any part of the Obligations but shall
       constitute and be a continuing security to the Bank for a current or
       running account and shall be in addition to and not in substitution for
       any other security now or hereafter held by the Bank;

(c)    nothing in this Agreement shall obligate the Bank to make any loan or
       accommodation to the Customer or extend the time for payment or
       satisfaction of the Obligations;

(d)    any failure by the Bank to exercise any right set out in this Agreement
       shall not constitute a waiver thereof; nothing in this Agreement or in
       the Obligations secured by this Agreement shall preclude any other remedy
       by action or otherwise for the enforcement of this Agreement or the
       payment in full of the Obligations secured by this Agreement;

(e)    all rights of the Bank under this Agreement shall be assignable and in
       any action brought by an assignee to enforce such rights, the Customer
       shall not asset against the assignee any claim or defence which the
       Customer now has or many hereafter have against the Bank;

(f)    all rights of the Bank under the Agreement shall enure to the benefit of
       its successors and assigns and all obligations of the Customer under this
       Agreement shall bind the Customer, his heirs, executors, administrators,
       successors and assigns;

<Page>

                                       4

(g)    if more than one Customer executes this Agreement, their obligations
       under this Agreement shall be joint and several, and the Obligations
       shall include those of all or any one or more of them;

(h)    if the Customer is a corporation, the Limitation of Civil Rights Act of
       the province of Saskatchewan shall have no application to this Agreement,
       or to any agreement or instrument renewing or extending or collateral to
       this Agreement or to the rights, powers or remedies of the Bank under
       this Agreement;

(i)    this Agreement shall be governed in all respects by the laws of the
       jurisdiction in which the Branch of the Bank mentioned in paragraph 1 is
       located;

(j)    the time for attachment of the security interest created hereby has not
       been postponed and is intended to attach when this Agreement is signed by
       the Customer and attaches at that time to Collateral in which the
       Customer then has any right, title or interest and attaches to Collateral
       in which the Customer subsequently acquires any right, title or interest
       at the time when the Customer first acquires such right, title or
       interest.

The Customer acknowledges receiving a copy of this Agreement.

The Customer expressly waives the right to receive a copy of any financing
statement or financing change statement which may be registered by the Bank in
connection with this Agreement or any verification statement issued with respect
thereto where such waiver is not otherwise prohibited by law.

Signed this 14th day of December, 2001

                                  Customer:  REGAL GREETINGS & GIFTS CORPORATION

                                   by:
                                        ---------------------------------------
                                        Authorized Signing Officer

                                   by:
                                        ---------------------------------------
                                        Authorized Signing Officer

<Table>
<S>                                                                            <C>                            <C>
  FULL NAME AND ADDRESS OF THE CUSTOMER (FOR INDIVIDUAL(S), INSERT FIRST       IF GIVEN BY INDIVIDUAL(S)
GIVEN NAME, INITIAL OF SECOND GIVEN NAME, (FULL SECOND NAME IN ALBERTA AND     RECORDDATE OF BIRTH DAY,       SEX
                  BRITISH COLUMBIA) IF ANY, THEN SURNAME)                             MONTH, YEAR             M F
</Table>

                                  SCHEDULE "A"

                           (Description of Collateral)

If space is insufficient attach additional page headed Page 2 of Schedule "A".

                                  SCHEDULE "B"

                                 (see attached)

If space is insufficient attach additional page headed Page 2 of Schedule "B".

       DATE RECEIVED
   ....................
RECORDED...............
APPROVED...............
E.O. AUDITOR............

<Page>

                                  SCHEDULE "B"

Customer will ensure Collateral is located at is locations in the following
provinces:

1.       Ontario
2.       Alberta
3.       British Columbia
4.       Manitoba
5.       New Brunswick
6.       Nova Scotia
7.       Saskatchewan

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}]]