Document:

EX-10.2

Exhibit 10.2

DEBTOR-IN-POSSESSION CREDIT AGREEMENT

by and among

ENESCO GROUP, INC.,

ENESCO INTERNATIONAL LTD.,

and

GREGG MANUFACTURING, INC.,

as Debtors and Debtors-in-Possession

as Borrowers,

THE LENDERS THAT ARE SIGNATORIES HERETO

as the Lenders,

and

WELLS FARGO FOOTHILL, INC.

as the Arranger and Administrative Agent

Dated as of January 23, 2007

1

TABLE OF CONTENTS

2

EXHIBITS AND SCHEDULES

	 	 	 
	Exhibit B-1

Exhibit C-1

Exhibit I-1

Exhibit L-1

	 	Form of Budget

Form of Compliance Certificate

Form of Interim Financing Order

Form of LIBOR Notice
	 
	 	 
	Schedule A-1

Schedule C-1

Schedule D-1

Schedule P-1

Schedule R-1

Schedule 1.1

Schedule 2.7(a)

Schedule 3.1

Schedule 4.5

Schedule 4.7(a)

Schedule 4.7(b)

Schedule 4.7(c)

Schedule 4.7(d)

Schedule 4.8(b)

Schedule 4.8(c)

Schedule 4.10

Schedule 4.13

Schedule 4.14

Schedule 4.15

Schedule 4.17

Schedule 4.19

Schedule 5.2

Schedule 5.3

Schedule 6.6

	 	Agent’s Account

Commitments

Designated Account

Permitted Liens

Real Property Collateral

Definitions

Cash Management Banks

Conditions Precedent

Locations of Inventory and Equipment

States of Organization

Chief Executive Offices

Organizational Identification Numbers

Commercial Tort Claims

Capitalization of Borrowers

Capitalization of Borrowers’ Subsidiaries

Litigation

Benefit Plans

Environmental Matters

Intellectual Property

Deposit Accounts and Securities Accounts

Permitted Indebtedness

Collateral Reporting

Financial Statements, Reports, Certificates

Nature of Business

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DEBTOR-IN-POSSESSION CREDIT AGREEMENT

THIS DEBTOR-IN-POSSESSION CREDIT AGREEMENT (this “Agreement”), is entered into as of
January 23, 2007 by and among the lenders identified on the signature pages hereof (such lenders,
together with their respective successors and permitted assigns, are referred to hereinafter each
individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO
FOOTHILL, INC., a California corporation, as the arranger and administrative agent for the Lenders
(“Agent”), ENESCO GROUP, INC., an Illinois corporation, as debtor and debtor-in-possession
(“Parent”), ENESCO INTERNATIONAL LTD., a Delaware corporation, as debtor and
debtor-in-possession (“EI Borrower”), and GREGG MANUFACTURING, INC., a California
corporation, as debtor and debtor-in-possession (“Gregg Borrower”, and together with Parent
and EI Borrower, collectively, the “Borrowers” and each, individually, a
"Borrower”).

BACKGROUND

WHEREAS, on January 12, 2007 (the “Filing Date”), Borrowers filed voluntary petitions
for relief under chapter 11 of the Bankruptcy Code (as hereinafter defined) in the United States
Bankruptcy Court for the Northern District of Illinois (Eastern Division) (the “Bankruptcy
Court”);

WHEREAS, Borrowers are continuing to operate their respective businesses and manage their
respective properties as debtors-in-possession under Sections 1107 and 1108 of the Bankruptcy Code;

WHEREAS, Borrowers have requested that the Lenders provide a secured revolving credit facility
to Borrowers in order to (i) fund the continued operation of each Borrower’s business as debtor and
debtor-in-possession under the Bankruptcy Code and (ii) satisfy and extinguish in full the Existing
Secured Obligations (as hereinafter defined); and

WHEREAS, the Lenders are willing to make available to Borrowers such post-petition loans and
other extensions of credit upon the terms and subject to the conditions set forth herein.

The parties agree as follows:

	1.	 	DEFINITIONS AND CONSTRUCTION.

1.1. Definitions. Capitalized terms used in this Agreement shall have the meanings
specified therefor on Schedule 1.1.

1.2. Accounting Terms. All accounting terms not specifically defined herein shall be
construed in accordance with GAAP. When used herein, the term “financial statements” shall include
the notes and schedules thereto.

1.3. Code. Any terms used in this Agreement that are defined in the Code shall be
construed and defined as set forth in the Code unless otherwise defined herein; provided,
however, that to the extent that the Code is used to define any term herein and such term
is defined differently in different Articles of the Code, the definition of such term contained in
Article 9 of the Code shall govern.

1.4. Construction. Unless the context of this Agreement or any other Loan Document
clearly requires otherwise, references to the plural include the singular, references to the
singular include the plural, the terms “includes” and “including” are not limiting, and the term
“or” has, except where otherwise indicated, the inclusive meaning represented by the phrase
“and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement
or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be,
as a whole and not to any particular provision of this Agreement or such other Loan Document, as
the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this
Agreement unless otherwise specified. Any reference in this Agreement or in any other Loan
Document to any agreement, instrument, or document shall include all alterations, amendments,
changes, extensions, modifications, renewals, replacements, substitutions, joinders, and
supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations,
amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders,
and supplements set forth herein). Any reference herein or in any other Loan Document to the
satisfaction or repayment in full of the Obligations shall mean the repayment in full in cash (or
cash collateralization in accordance with the terms hereof) of all Obligations other than
unasserted contingent indemnification Obligations and other than any Bank Product Obligations that,
at such time, are allowed by the applicable Bank Product Provider to remain outstanding and that
are not required by the provisions of this Agreement to be repaid or cash collateralized. Any
reference herein to any Person shall be construed to include such Person’s successors and assigns.
Any requirement of a writing contained herein or in any other Loan Document shall be satisfied by
the transmission of a Record and any Record so transmitted shall constitute a representation and
warranty as to the accuracy and completeness of the information contained therein.

1.5. Schedules and Exhibits. All of the schedules and exhibits attached to this
Agreement shall be deemed incorporated herein by reference.

	2.	 	LOAN AND TERMS OF PAYMENT.

2.1. Revolver Advances.

(a) Subject to the terms and conditions of this Agreement, and during the term of this
Agreement, each Lender agrees (severally, not jointly or jointly and severally) to make advances
(“Advances”) to Borrowers in an amount at any one time outstanding not to exceed such
Lender’s Pro Rata Share of an amount equal to the Maximum Revolver Amount less the Letter of Credit
Usage at such time less the Bank Product Reserve. Notwithstanding the foregoing, (i) the aggregate
Advances made during any week, together with all Advances made in prior weeks, shall not exceed the
aggregate disbursements of cash set forth for such week, together with aggregate disbursements of
cash set forth for all prior weeks, in each case as set forth in the Budget and (ii) Advances shall
be used by Borrowers solely as set forth in Section 6.14.

(b) Anything to the contrary in this Section 2.1 notwithstanding, Agent shall have the
right to establish reserves against the Maximum Revolver Amount in such amounts, and with respect
to such matters, as Agent in its Permitted Discretion shall deem necessary or appropriate,
including reserves (i) with respect to sums that Borrowers or their Subsidiaries are required to
pay under any Section of this Agreement or any other Loan Document (such as taxes, assessments,
insurance premiums, or, in the case of leased assets, rents or other amounts payable under such
leases) and have failed to pay, (ii) with respect to amounts owing by Borrowers or their
Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the Collateral
(other than a Permitted Lien), which Lien or trust, in the Permitted Discretion of Agent could have
a priority superior to the Agent’s Liens (such as Liens or trusts in favor of landlords,
warehousemen, carriers, mechanics, materialmen, laborers, or suppliers, Liens pertaining to
employee wages or Liens or trusts for ad valorem, excise, sales, or other taxes where given
priority under applicable law) in and to such item of the Collateral, (iii) to address the results
of any audit or appraisal performed by or on behalf of Agent from time to time after the Closing
Date, including audits and appraisals of any Equipment, Inventory or Real Property, (iv) the
Retained Professionals Carveout and UST Fees, and (v) other potential costs expenses pertaining to
the Bankruptcy Case. Promptly after establishing any individual reserve for an amount in excess of
$500,000, Agent will notify Borrowers thereof.

(c) Amounts borrowed pursuant to this Section 2.1 may be repaid and, subject to the
terms and conditions of this Agreement, reborrowed at any time during the term of this Agreement.
The outstanding principal amount of the Advances, together with interest accrued thereon, shall be
due and payable on the Maturity Date or, if earlier, on the date on which they are declared due and
payable pursuant to the terms of this Agreement.

2.2. [Intentionally Reserved].

2.3. Borrowing Procedures and Settlements.

(a) Procedure for Borrowing. Each Borrowing shall be made by an irrevocable written request
by a Responsible Officer delivered to Agent. Such notice must be received by Agent no later than
9:00 a.m. (California time) on the requested Funding Date specifying (i) the amount of such
Borrowing and (ii) the requested Funding Date, which shall be a Business Day. At Agent’s election,
in lieu of delivering the above-described written request, any Responsible Officer may give Agent
telephonic notice of such request by the required time. In such circumstances, Borrowers agree
that any such telephonic notice will be confirmed in writing within 24 hours of the giving of such
telephonic notice, but the failure to provide such written confirmation shall not affect the
validity of the request.

(b) Making of Loans.

(i) Promptly after receipt of a request for a Borrowing pursuant to Section 2.3(a),
Agent shall notify the Lenders, not later than 11:00 a.m. (California time) on the Funding Date
applicable thereto, by telecopy, telephone, or other similar form of transmission, of the requested
Borrowing. Each Lender shall make the amount of such Lender’s Pro Rata Share of the requested
Borrowing available to Agent in immediately available funds, to Agent’s Account, not later than
1:00 p.m. (California time) on the Funding Date applicable thereto. After Agent’s receipt of the
proceeds of such Advances, Agent shall make the proceeds thereof available to Administrative
Borrower on the applicable Funding Date by transferring immediately available funds equal to such
proceeds received by Agent to Administrative Borrower’s Designated Account; provided,
however, that, Agent shall not request any Lender to make, and no Lender shall have the
obligation to make, any Advance if Agent shall have actual knowledge that (1) one or more of the
applicable conditions precedent set forth in Section 3 will not be satisfied on the
requested Funding Date for the applicable Borrowing unless such condition has been waived, or
(2) the requested Borrowing would exceed the Availability on such Funding Date.

(ii) Unless Agent receives notice from a Lender prior to 9:00 a.m. (California time) on the
date of a Borrowing, that such Lender will not make available as and when required hereunder to
Agent for the account of Borrowers the amount of that Lender’s Pro Rata Share of the Borrowing,
Agent may assume that each Lender has made or will make such amount available to Agent in
immediately available funds on the Funding Date and Agent may (but shall not be so required), in
reliance upon such assumption, make available to Borrowers on such date a corresponding amount. If
and to the extent any Lender shall not have made its full amount available to Agent in immediately
available funds and Agent in such circumstances has made available to Borrowers such amount, that
Lender shall on the Business Day following such Funding Date make such amount available to Agent,
together with interest at the Defaulting Lender Rate for each day during such period. A notice
submitted by Agent to any Lender with respect to amounts owing under this subsection shall be
conclusive, absent manifest error. If such amount is so made available, such payment to Agent
shall constitute such Lender’s Advance on the date of Borrowing for all purposes of this Agreement.
If such amount is not made available to Agent on the Business Day following the Funding Date,
Agent will notify Administrative Borrower of such failure to fund and, upon demand by Agent,
Borrowers shall pay such amount to Agent for Agent’s account, together with interest thereon for
each day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate
applicable at the time to the Advances composing such Borrowing. The failure of any Lender to make
any Advance on any Funding Date shall not relieve any other Lender of any obligation hereunder to
make an Advance on such Funding Date, but no Lender shall be responsible for the failure of any
other Lender to make the Advance to be made by such other Lender on any Funding Date.

(iii) Agent shall not be obligated to transfer to a Defaulting Lender any payments made by
Borrowers to Agent for the Defaulting Lender’s benefit, and, in the absence of such transfer to the
Defaulting Lender, Agent shall transfer any such payments to each other non-Defaulting Lender
member of the Lender Group ratably in accordance with their Commitments (but only to the extent
that such Defaulting Lender’s Advance was funded by the other members of the Lender Group) or, if
so directed by Administrative Borrower and if no Default or Event of Default had occurred and is
continuing (and to the extent such Defaulting Lender’s Advance was not funded by the Lender Group),
retain same to be re-advanced to Borrowers as if such Defaulting Lender had made Advances to
Borrowers. Subject to the foregoing, Agent may hold and, in its Permitted Discretion, re-lend to
Borrowers for the account of such Defaulting Lender the amount of all such payments received and
retained by Agent for the account of such Defaulting Lender. Solely for the purposes of voting or
consenting to matters with respect to the Loan Documents, such Defaulting Lender shall be deemed
not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero. This Section shall
remain effective with respect to such Lender until (x) the Obligations under this Agreement shall
have been declared or shall have become immediately due and payable, (y) the non-Defaulting
Lenders, Agent, and Administrative Borrower shall have waived such Defaulting Lender’s default in
writing, or (z) the Defaulting Lender makes its Pro Rata Share of the applicable Advance and pays
to Agent all amounts owing by Defaulting Lender in respect thereof. The operation of this Section
shall not be construed to increase or otherwise affect the Commitment of any Lender, to relieve or
excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations
hereunder, or to relieve or excuse the performance by Borrowers of their duties and obligations
hereunder to Agent or to the Lenders other than such Defaulting Lender. Any such failure to fund
by any Defaulting Lender shall constitute a material breach by such Defaulting Lender of this
Agreement and shall entitle Administrative Borrower at its option, upon written notice to Agent, to
arrange for a substitute Lender to assume the Commitment of such Defaulting Lender, such substitute
Lender to be reasonably acceptable to Agent. In connection with the arrangement of such a
substitute Lender, the Defaulting Lender shall have no right to refuse to be replaced hereunder,
and agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the
substitute Lender (and agrees that it shall be deemed to have executed and delivered such document
if it fails to do so) subject only to being repaid its share of the outstanding Obligations (other
than Bank Product Obligations, but including an assumption of its Pro Rata Share of the Risk
Participation Liability) without any premium or penalty of any kind whatsoever; provided however,
that any such assumption of the Commitment of such Defaulting Lender shall not be deemed to
constitute a waiver of any of the Lender Groups’ or Borrowers’ rights or remedies against any such
Defaulting Lender arising out of or in relation to such failure to fund.

(c) Protective Advances.

(i) Agent hereby is authorized by Borrowers and the Lenders, from time to time in Agent’s sole
discretion, (A) after the occurrence and during the continuance of a Default or an Event of
Default, or (B) at any time that any of the other applicable conditions precedent set forth in
Section 3 are not satisfied, to make Advances to Borrowers on behalf of the Lenders that
Agent, in its Permitted Discretion deems necessary or desirable (1) to preserve or protect the
Collateral, or any portion thereof, (2) to enhance the likelihood of repayment of the Obligations
(other than the Bank Product Obligations), or (3) to pay any other amount chargeable to Borrowers
pursuant to the terms of this Agreement, including Lender Group Expenses and the costs, fees, and
expenses described in Section 9 (any of the Advances described in this Section
2.3(c)(i) shall be referred to as “Protective Advances”).

(ii) Each Protective Advance shall be deemed to be an Advance hereunder, except that no
Protective Advance shall be eligible to be a LIBOR Rate Loan and all payments on the Protective
Advances shall be payable to Agent solely for its own account. The Protective Advances shall be
repayable on demand, secured by the Agent’s Liens, constitute Obligations hereunder, and bear
interest at the rate applicable from time to time to Advances that are Base Rate Loans. The
provisions of this Section 2.3(c) are for the exclusive benefit of Agent and the Lenders
and are not intended to benefit any Borrower in any way.

(d) Settlement. It is agreed that each Lender’s funded portion of the Advances is intended by
the Lenders to equal, at all times, such Lender’s Pro Rata Share of the outstanding Advances. Such
agreement notwithstanding, Agent and the other Lenders agree (which agreement shall not be for the
benefit of any Borrower) that in order to facilitate the administration of this Agreement and the
other Loan Documents, settlement among the Lenders as to the Advances and the Protective Advances
shall take place on a periodic basis in accordance with the following provisions:

(i) Agent shall request settlement (“Settlement”) with the Lenders on a weekly basis,
or on a more frequent basis if so determined by Agent (1) for itself, with respect to the
outstanding Protective Advances, and (2) with respect to Borrowers’ or their Subsidiaries’
Collections received, as to each by notifying the Lenders by telecopy, telephone, or other similar
form of transmission, of such requested Settlement, no later than 2:00 p.m. (California time) on
the Business Day immediately prior to the date of such requested Settlement (the date of such
requested Settlement being the “Settlement Date”). Such notice of a Settlement Date shall
include a summary statement of the amount of outstanding Advances and Protective Advances for the
period since the prior Settlement Date. Subject to the terms and conditions contained herein
(including Section 2.3(b)(iii)): (y) if a Lender’s balance of the Advances (including
Protective Advances) exceeds such Lender’s Pro Rata Share of the Advances (including Protective
Advances) as of a Settlement Date, then Agent shall, by no later than 12:00 p.m. (California time)
on the Settlement Date, transfer in immediately available funds to a Deposit Account of such Lender
(as such Lender may designate), an amount such that each such Lender shall, upon receipt of such
amount, have as of the Settlement Date, its Pro Rata Share of the Advances (including Protective
Advances), and (z) if a Lender’s balance of the Advances (including Protective Advances) is less
than such Lender’s Pro Rata Share of the Advances (including Protective Advances) as of a
Settlement Date, such Lender shall no later than 12:00 p.m. (California time) on the Settlement
Date transfer in immediately available funds to the Agent’s Account, an amount such that each such
Lender shall, upon transfer of such amount, have as of the Settlement Date, its Pro Rata Share of
the Advances (including Protective Advances). Such amounts made available to Agent under clause
(z) of the immediately preceding sentence shall be applied against the amounts of the applicable
Protective Advances and shall constitute Advances of such Lenders. If any such amount is not made
available to Agent by any Lender on the Settlement Date applicable thereto to the extent required
by the terms hereof, Agent shall be entitled to recover for its account such amount on demand from
such Lender together with interest thereon at the Defaulting Lender Rate.

(ii) In determining whether a Lender’s balance of the Advances and Protective Advances is less
than, equal to, or greater than such Lender’s Pro Rata Share of the Advances and Protective
Advances as of a Settlement Date, Agent shall, as part of the relevant Settlement, apply to such
balance the portion of payments actually received in good funds by Agent with respect to principal,
interest, fees payable by Borrowers and allocable to the Lenders hereunder, and proceeds of
Collateral. To the extent that a net amount is owed to any such Lender after such application,
such net amount shall be distributed by Agent to that Lender as part of such next Settlement.

(e) Notation; Register. Agent shall record on its books the principal amount of the Advances
owing to each Lender, Protective Advances owing to Agent, and the interests therein of each Lender,
from time to time and such records shall, absent manifest error, conclusively be presumed to be
correct and accurate. Agent, acting solely for this purpose as a non-fiduciary agent of each
Borrower (but without creating any duties except those set forth in this paragraph), shall maintain
at its office a register for the recordation of the name and address of each Lender, and the
Revolver Commitment of each Lender, and outstanding principal amount of the Advances owing to each
Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and each of the Borrowers and each member of the Lender Group shall
treat the Person(s) whose name(s) are recorded in the Register pursuant to the terms hereof as
Lender(s) hereunder for all purposes of this Agreement, any note and any other Loan Document,
notwithstanding notice to the contrary. The Register shall be available for inspection by any
Borrower at any reasonable time and from time to time upon reasonable prior notice.

(f) Lenders’ Failure to Perform. All Advances (other than Protective Advances) shall be made
by the Lenders contemporaneously and in accordance with their Pro Rata Shares. It is understood
that (i) no Lender shall be responsible for any failure by any other Lender to perform its
obligation to make any Advance (or other extension of credit) hereunder, nor shall any Commitment
of any Lender be increased or decreased as a result of any failure by any other Lender to perform
its obligations hereunder, and (ii) no failure by any Lender to perform its obligations hereunder
shall excuse any other Lender from its obligations hereunder.

2.4. Payments.

(a) Payments by Borrowers.

(i) Except as otherwise expressly provided herein, all payments by Borrowers shall be made to
Agent’s Account for the account of the Lender Group and shall be made in immediately available
funds, no later than 11:00 a.m. (California time) on the date specified herein. Any payment
received by Agent later than 11:00 a.m. (California time), shall be deemed solely for the purpose
of calculating interest and fees to have been received on the following Business Day and any
applicable interest or fee shall continue to accrue until such following Business Day.

(ii) Unless Agent receives notice from Administrative Borrower prior to the date on which any
payment is due to the Lenders that Borrowers will not make such payment in full as and when
required, Agent may assume that Borrowers have made (or will make) such payment in full to Agent on
such date in immediately available funds and Agent may (but shall not be so required), in reliance
upon such assumption, distribute to each Lender on such due date an amount equal to the amount then
due such Lender. If and to the extent Borrowers do not make such payment in full to Agent on the
date when due, each Lender severally shall repay to Agent on demand such amount distributed to such
Lender, together with interest thereon at the Defaulting Lender Rate for each day from the date
such amount is distributed to such Lender until the date repaid.

(b) Apportionment and Application.

(i) So long as no Event of Default has occurred and is continuing and except as otherwise
provided with respect to Defaulting Lenders, all principal and interest payments shall be
apportioned ratably among the Lenders (according to the unpaid principal balance of the Obligations
to which such payments relate held by each Lender) and all payments of fees and expenses (other
than fees or expenses that are for Agent’s separate account) shall be apportioned ratably among the
Lenders having a Pro Rata Share of the Revolver Commitment or Obligation to which a particular fee
or expense relates. All payments to be made hereunder by Borrowers shall be remitted to Agent and
all (subject to Section 2.4(b)(iv) hereof) such payments, and all proceeds of Collateral
received by Agent, shall be applied, so long as no Event of Default has occurred and is continuing,
to reduce the balance of the Advances outstanding and, thereafter, to Borrowers (to be wired to the
Designated Account) or such other Person entitled thereto under applicable law.

(ii) At any time that an Event of Default has occurred and is continuing and the Agent has
declared all or any portion of the Obligations immediately due and payable in accordance with
Section 8.1, and except as otherwise provided with respect to Defaulting Lenders, all
payments remitted to Agent and all proceeds of Collateral received by Agent shall be applied as
follows:

(A) first, to pay any Lender Group Expenses (including cost or expense reimbursements)
or indemnities then due to Agent under the Loan Documents, until paid in full,

(B) second, to pay any fees or premiums then due to Agent under the Loan Documents
until paid in full,

(C) third, to pay interest due in respect of all Protective Advances until paid in
full,

(D) fourth, to pay the principal of all Protective Advances until paid in full,

(E) fifth, ratably to pay any Lender Group Expenses (including cost or expense
reimbursements) or indemnities then due to any of the Lenders under the Loan Documents, until paid
in full,

(F) sixth, ratably to pay any fees or premiums then due to any of the Lenders under
the Loan Documents until paid in full,

(G) seventh, ratably to pay interest due in respect of the Advances (other than
Protective Advances) until paid in full,

(H) eighth, ratably (i) to pay the principal of all Advances until paid in full,
(ii) to Agent, to be held by Agent, for the ratable benefit of Issuing Lender and those Lenders
having a Revolver Commitment, as cash collateral in an amount up to 105% of the Letter of Credit
Usage, and (iii) to Agent, to be held by Agent, for the benefit of the Bank Product Providers, as
cash collateral in an amount up to the amount of the Bank Product Reserve established prior to the
occurrence of, and not in contemplation of, the subject Event of Default,

(I) ninth, to pay any other Obligations (including the provision of amounts to Agent,
to be held by Agent, for the benefit of the Bank Product Providers, as cash collateral in an amount
up to the amount determined by Agent in its Permitted Discretion as the amount necessary to secure
Borrowers’ and their Subsidiaries’ obligations in respect of Bank Products), and

(J) tenth, to Borrowers (to be wired to the Designated Account) or such other Person
entitled thereto under applicable law.

(iii) Agent promptly shall distribute to each Lender, pursuant to the applicable wire
instructions received from each Lender in writing, such funds as it may be entitled to receive,
subject to a Settlement delay as provided in Section 2.3(d).

(iv) In each instance, so long as no Event of Default has occurred and is continuing,
Section 2.4(b)(i) shall not apply to any payment made by Borrowers to Agent and specified
by Borrowers to be for the payment of specific Obligations then due and payable (or prepayable)
under any provision of this Agreement.

(v) For purposes of Section 2.4(b)(ii), “paid in full” means payment of all amounts
owing under the Loan Documents according to the terms thereof, including loan fees, service fees,
professional fees, interest (and specifically including interest accrued after the commencement of
any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements,
whether or not any of the foregoing would be or is allowed or disallowed in whole or in part in any
Insolvency Proceeding.

(vi) In the event of a direct conflict between the priority provisions of this Section
2.4 and any other provision contained in any other Loan Document, it is the intention of the
parties hereto that such provisions be read together and construed, to the fullest extent possible,
to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot
be resolved as aforesaid, the terms and provisions of this Section 2.4 shall control and
govern.

(c) Mandatory Prepayments.

(i) [Intentionally Reserved]

(ii) Immediately upon the receipt by Borrowers or any of their Subsidiaries of the proceeds of
any voluntary or involuntary sale or disposition by Borrowers or any of their Subsidiaries of
property or assets (including casualty losses or condemnations but excluding sales or dispositions
which qualify as Permitted Dispositions), Borrowers shall prepay the outstanding principal amount
of the Obligations in accordance with Section 2.4(d) in an amount equal to 100% of the Net
Cash Proceeds (including condemnation awards and payments in lieu thereof) received by such Person
in connection with such sales or dispositions. Nothing contained in this Section
2.4(c)(ii) shall permit Borrowers or any of their Subsidiaries to sell or otherwise dispose of
any property or assets other than in accordance with Section 6.4.

(iii) Immediately upon the receipt by Borrowers or any of their Subsidiaries of any
Extraordinary Receipts, Borrowers shall prepay the outstanding principal amount of the Obligations
in accordance with Section 2.4(d) in an amount equal to 100% of such Extraordinary
Receipts, net of any reasonable expenses incurred in collecting such Extraordinary Receipts.

(iv) Immediately upon the issuance or incurrence by Borrowers or any of their Subsidiaries of
any Indebtedness (other than Indebtedness permitted under Section 6.1(a), (b),
(c), (d), (e) or (f)) or the issuance by Borrowers or any of their
Subsidiaries of any shares of Borrowers’ Stock or their Subsidiaries’ Stock (other than in the
event that Borrowers or any of Subsidiary of a Borrower forms a Subsidiary in accordance with the
terms hereof, the issuance by such Subsidiary of Stock to a Borrower or such Subsidiary, as
applicable), Borrowers shall prepay the outstanding principal amount of the Obligations in
accordance with Section 2.4(d) in an amount equal to 100% of the Net Cash Proceeds received
by such Person in connection with such issuance or incurrence. The provisions of this Section
2.4(c)(iv) shall not be deemed to be implied consent to any such issuance or incurrence
otherwise prohibited by the terms and conditions of this Agreement.

(d) Application of Payments. Each prepayment pursuant to Section 2.4(c)(ii),
2.4(c)(iii) or 2.4(c)(iv) above shall be applied in the manner set forth in
Section 2.4(b)(ii) (with, solely in the case of prepayments pursuant to Section
2.4(c)(ii) or 2.4(c)(iv), a corresponding permanent reduction of the Maximum Revolver
Amount).

2.5. Intentionally Reserved.

2.6. Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations.

(a) Interest Rates. Except as provided in Section 2.6(c), all Obligations (except for
undrawn Letters of Credit and except for Bank Product Obligations) that have been charged to the
Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof as
follows (i) if the relevant Obligation is an Advance that is a LIBOR Rate Loan, at a per annum rate
equal to the LIBOR Rate plus the LIBOR Rate Margin, and (ii) otherwise, at a per annum rate equal
to the Base Rate plus the Base Rate Margin.

The foregoing notwithstanding, at no time shall any portion of the Obligations (other than
Bank Product Obligations) bear interest on the Daily Balance thereof at a per annum rate less than
5%. To the extent that interest accrued hereunder at the rate set forth herein would be less than
the foregoing minimum daily rate, the interest rate chargeable hereunder for such day automatically
shall be deemed increased to the minimum rate.

(b) Letter of Credit Fee. Borrowers shall pay Agent (for the ratable benefit of the Lenders
with a Revolver Commitment, subject to any agreements between Agent and individual Lenders), a
Letter of Credit fee (in addition to the charges, commissions, fees, and costs set forth in
Section 2.12(e)) which shall accrue at a rate equal to 5.5% per annum times the Daily
Balance of the undrawn amount of all outstanding Letters of Credit.

(c) Default Rate. Upon the occurrence and during the continuation of an Event of Default, at
the election of the Required Lenders,

(i) all Obligations (except for undrawn Letters of Credit and except for Bank Product
Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear
interest on the Daily Balance thereof at a per annum rate equal to 2 percentage points above the
per annum rate otherwise applicable hereunder, and

(ii) the Letter of Credit fee provided for in Section 2.6(b) shall be increased to 2
percentage points above the per annum rate otherwise applicable hereunder.

(d) Payment. Except as provided to the contrary in Section 2.11 or Section
2.13(a), interest, Letter of Credit fees, and all other fees payable hereunder shall be due and
payable, in arrears, on the first day of each month at any time that Obligations or Revolver
Commitments are outstanding. Borrowers hereby authorize Agent, from time to time, without prior
notice to Borrowers, to charge all interest and fees (when due and payable), all Lender Group
Expenses (as and when incurred), all charges, commissions, fees, and costs provided for in
Section 2.12(e) (as and when accrued or incurred), all fees and costs provided for in
Section 2.11 (as and when accrued or incurred), and all other payments as and when due and
payable under any Loan Document (including any amounts due and payable to the Bank Product
Providers in respect of Bank Products up to the amount of the Bank Product Reserve) to Borrowers’
Loan Account, which amounts thereafter shall constitute Advances hereunder and shall accrue
interest at the rate then applicable to Advances that are Base Rate Loans. Any interest not paid
when due shall be compounded by being charged to the Loan Account and shall thereafter constitute
Advances hereunder and shall accrue interest at the rate then applicable to Advances that are Base
Rate Loans.

(e) Computation. All interest and fees chargeable under the Loan Documents shall be computed
on the basis of a 360 day year for the actual number of days elapsed. In the event the Base Rate
is changed from time to time hereafter, the rates of interest hereunder based upon the Base Rate
automatically and immediately shall be increased or decreased by an amount equal to such change in
the Base Rate.

(f) Intent to Limit Charges to Maximum Lawful Rate. In no event shall the interest rate or
rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the
highest rate permissible under any law that a court of competent jurisdiction shall, in a final
determination, deem applicable. Borrowers and the Lender Group, in executing and delivering this
Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated
within it; provided, however, that, anything contained herein to the contrary
notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum
allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrowers are
and shall be liable only for the payment of such maximum as allowed by law, and payment received
from Borrowers in excess of such legal maximum, whenever received, shall be applied to reduce the
principal balance of the Obligations to the extent of such excess.

2.7. Cash Management.

(a) Borrowers shall and shall cause each of their U.S. Subsidiaries to (i) establish and
maintain cash management services of a type and on terms satisfactory to Agent at one or more of
the banks set forth on Schedule 2.7(a) (each a “Cash Management Bank”), and shall
request in writing and otherwise take such reasonable steps to ensure that all of their and their
U.S. Subsidiaries’ Account Debtors forward payment of the amounts owed by them directly to such
Cash Management Bank, and (ii) deposit or cause to be deposited promptly, and in any event no later
than the first Business Day after the date of receipt thereof, all of their Collections (including
those sent directly by their Account Debtors to Borrowers or their Subsidiaries, but excluding
disputed checks) into a bank account in Agent’s name (a “Cash Management Account”) at one
of the Cash Management Banks.

(b) Each Cash Management Bank shall establish and maintain Cash Management Agreements with
Agent and Borrowers. Each such Cash Management Agreement shall provide, among other things, that
(i) the Cash Management Bank will comply with any instructions originated by Agent directing the
disposition of the funds in such Cash Management Account without further consent by Borrowers or
their Subsidiaries, as applicable, (ii) the Cash Management Bank has no rights of setoff or
recoupment or any other claim against the applicable Cash Management Account, other than for
payment of its service fees and other charges directly related to the administration of such Cash
Management Account and for returned checks or other items of payment, and (iii) it will forward, by
daily sweep, all amounts in the applicable Cash Management Account to the Agent’s Account.

(c) So long as no Default or Event of Default has occurred and is continuing, Administrative
Borrower may amend Schedule 2.7(a) to add or replace a Cash Management Bank or Cash
Management Account; provided, however, that (i) such prospective Cash Management
Bank shall be reasonably satisfactory to Agent, and (ii) prior to the time of the opening of such
Cash Management Account, a Borrower (or its U.S. Subsidiary, as applicable) and such prospective
Cash Management Bank shall have executed and delivered to Agent a Cash Management Agreement.
Borrowers (or their U.S. Subsidiaries, as applicable) shall close any of their Cash Management
Accounts (and establish replacement cash management accounts in accordance with the foregoing
sentence) promptly and in any event within 30 days of notice from Agent that the creditworthiness
of any Cash Management Bank is no longer acceptable in Agent’s reasonable judgment, or as promptly
as practicable and in any event within 60 days of notice from Agent that the operating performance,
funds transfer, or availability procedures or performance of the Cash Management Bank with respect
to Cash Management Accounts or Agent’s liability under any Cash Management Agreement with such Cash
Management Bank is no longer acceptable in Agent’s reasonable judgment.

(d) Each Cash Management Account shall be a cash collateral account subject to a Control
Agreement.

(e) Although the prior provisions of this Section 2.7 pertain solely to Borrowers and
each of their U.S. Subsidiaries, on the 15th day after the Closing Date, such provisions shall
pertain to all Subsidiaries (other than Dormant Subsidiaries and Enesco France S.A. (if in the case
of Enesco France S.A., providing Cash Management Agreements would conflict with any provision of
the credit facility of Enesco France S.A. as it exists on the date hereof)). The requirement of
this paragraph (e) to obtain Cash Management Agreements will be on a best efforts basis and such
Cash Management Agreements need not require daily cash sweeps in the absence of an Event of
Default.

(f) Within 15 days after the Closing Date, Borrowers will either (i) close their account(s) at
Wilmington Trust and cause all funds that would otherwise have been deposited in such account(s)
consistent with past practice, to be deposited in an account subject to a Cash Management
Agreement, (ii) cause such accounts to be subject to a Cash Management Agreement, or (iii) open a
replacement account in Delaware that is subject to a Cash Management Agreement.

2.8. Crediting Payments; Clearance Charge. The receipt of any payment item by Agent
(whether from transfers to Agent by the Cash Management Banks pursuant to the Cash Management
Agreements or otherwise) shall not be considered a payment on account unless such payment item is a
wire transfer of immediately available federal funds made to the Agent’s Account or unless and
until such payment item is honored when presented for payment. Should any payment item not be
honored when presented for payment, then Borrowers shall be deemed not to have made such payment
and interest shall be calculated accordingly. Anything to the contrary contained herein
notwithstanding, any payment item shall be deemed received by Agent only if it is received into the
Agent’s Account on a Business Day on or before 11:00 a.m. (California time). If any payment item
is received into the Agent’s Account on a non-Business Day or after 11:00 a.m. (California time) on
a Business Day, it shall be deemed solely for the purpose of calculating interest and fees to have
been received by Agent as of the opening of business on the immediately following Business Day.
From and after the Closing Date, Agent shall be entitled to charge Borrowers for one Business Days
of ‘clearance’ at the rate then applicable under Section 2.6 to Advances that are Base Rate
Loans on all Collections that are received by Borrowers and their Subsidiaries (regardless of
whether forwarded by the Cash Management Banks to Agent). This across-the-board one Business Day
clearance charge on all Collections of Borrowers and their Subsidiaries is acknowledged by the
parties to constitute an integral aspect of the pricing of the financing of Borrowers and shall
apply irrespective of whether or not there are any outstanding monetary Obligations; the effect of
such clearance charge being the equivalent of charging interest on such Collections through the
completion of a period ending one Business Days after the receipt thereof. The parties acknowledge
and agree that the economic benefit of the foregoing provisions of this Section 2.8 shall
be for the exclusive benefit of Agent.

2.9. Designated Account. Agent is authorized to make the Advances, and Issuing Lender
is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or other
instructions received from anyone purporting to be a Responsible Officer or, without instructions,
if pursuant to Section 2.6(d). Administrative Borrower agrees to establish and maintain
the Designated Account with the Designated Account Bank for the purpose of receiving the proceeds
of the Advances requested by Borrowers and made by Agent or the Lenders hereunder. Unless
otherwise agreed by Agent and Administrative Borrower, any Advance or Protective Advance shall be
made to the Designated Account.

2.10. Maintenance of Loan Account; Statements of Obligations. Agent shall maintain an
account on its books in the name of Borrowers (the “Loan Account”) on which Borrowers will
be charged with all Advances (including Protective Advances) made by Agent or the Lenders to
Borrowers or for Borrowers’ account, the Letters of Credit issued by Issuing Lender for Borrowers’
account, and with all other payment Obligations hereunder or under the other Loan Documents (except
for Bank Product Obligations), including, accrued interest, fees and expenses, and Lender Group
Expenses. In accordance with Section 2.8, the Loan Account will be credited with all
payments received by Agent from Borrowers or for Borrowers’ account, including all amounts received
in the Agent’s Account from any Cash Management Bank. Agent shall render statements regarding the
Loan Account to Administrative Borrower, including principal, interest, fees, and including an
itemization of all charges and expenses constituting Lender Group Expenses owing, and such
statements, absent manifest error, shall be conclusively presumed to be correct and accurate and
constitute an account stated between Borrowers and the Lender Group unless, within 30 days after
receipt thereof by Administrative Borrower, Administrative Borrower shall deliver to Agent written
objection thereto describing the error or errors contained in any such statements.

2.11. Fees. Borrowers shall pay to Agent, as and when due and payable under the terms
of the Fee Letter, the fees set forth in the Fee Letter.

2.12. Letters of Credit.

(a) Subject to the terms and conditions of this Agreement, the Issuing Lender agrees to issue
letters of credit for the account of Borrowers (each, an “L/C”) or to purchase
participations or execute indemnities or reimbursement obligations (each such undertaking, an
"L/C Undertaking”) with respect to letters of credit issued by an Underlying Issuer (as of
the Closing Date, the prospective Underlying Issuer is to be Wells Fargo) for the account of
Borrowers. Each request for the issuance of a Letter of Credit or the amendment, renewal, or
extension of any outstanding Letter of Credit, shall be made in writing by a Responsible Officer
and delivered to the Issuing Lender and Agent via hand delivery, telefacsimile, or other electronic
method of transmission reasonably in advance of the requested date of issuance, amendment, renewal,
or extension. Each such request shall be in form and substance satisfactory to the Issuing Lender
in its Permitted Discretion and shall specify (i) the amount of such Letter of Credit, (ii) the
date of issuance, amendment, renewal, or extension of such Letter of Credit, (iii) the expiration
date of such Letter of Credit, (iv) the name and address of the beneficiary thereof (or the
beneficiary of the Underlying Letter of Credit, as applicable), and (v) such other information
(including, in the case of an amendment, renewal, or extension, identification of the outstanding
Letter of Credit to be so amended, renewed, or extended) as shall be necessary to prepare, amend,
renew, or extend such Letter of Credit. If requested by the Issuing Lender, Borrowers also shall
be an applicant under the application with respect to any Underlying Letter of Credit that is to be
the subject of an L/C Undertaking. The Issuing Lender shall have no obligation to issue a Letter
of Credit if any of the following would result after giving effect to the issuance of such
requested Letter of Credit:

(i) the Letter of Credit Usage would exceed $3,000,000, or

(ii) the Letter of Credit Usage would exceed the Maximum Revolver Amount less the outstanding
amount of Advances less the Bank Product Reserve.

Borrowers and the Lender Group acknowledge and agree that certain Underlying Letters of Credit
may be issued to support letters of credit that already are outstanding as of the Closing Date.
Each Letter of Credit (and corresponding Underlying Letter of Credit) shall be in form and
substance acceptable to the Issuing Lender (in the exercise of its Permitted Discretion), including
the requirement that the amounts payable thereunder must be payable in Dollars. If Issuing Lender
is obligated to advance funds under a Letter of Credit, Borrowers immediately shall reimburse such
L/C Disbursement to Issuing Lender by paying to Agent an amount equal to such L/C Disbursement not
later than 11:00 a.m., California time, on the date that such L/C Disbursement is made, if
Administrative Borrower shall have received written or telephonic notice of such L/C Disbursement
prior to 10:00 a.m., California time, on such date, or, if such notice has not been received by
Administrative Borrower prior to such time on such date, then not later than 11:00 a.m., California
time, on the Business Day that Administrative Borrower receives such notice, if such notice is
received prior to 10:00 a.m., California time, on the date of receipt, and, in the absence of such
reimbursement, the L/C Disbursement immediately and automatically shall be deemed to be an Advance
hereunder and, initially, shall bear interest at the rate then applicable to Advances that are Base
Rate Loans. To the extent an L/C Disbursement is deemed to be an Advance hereunder, Borrowers’
obligation to reimburse such L/C Disbursement shall be discharged and replaced by the resulting
Advance. Promptly following receipt by Agent of any payment from Borrowers pursuant to this
paragraph, Agent shall distribute such payment to the Issuing Lender or, to the extent that Lenders
have made payments pursuant to Section 2.12(b) to reimburse the Issuing Lender, then to
such Lenders and the Issuing Lender as their interests may appear.

(b) Promptly following receipt of a notice of L/C Disbursement pursuant to Section
2.12(a), each Lender with a Revolver Commitment agrees to fund its Pro Rata Share of any
Advance deemed made pursuant to the foregoing subsection on the same terms and conditions as if
Borrowers had requested such Advance and Agent shall promptly pay to Issuing Lender the amounts so
received by it from the Lenders. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Lender or the Lenders with Revolver Commitments, the Issuing Lender shall be deemed to have
granted to each Lender with a Revolver Commitment, and each Lender with a Revolver Commitment shall
be deemed to have purchased, a participation in each Letter of Credit, in an amount equal to its
Pro Rata Share of the Risk Participation Liability of such Letter of Credit, and each such Lender
agrees to pay to Agent, for the account of the Issuing Lender, such Lender’s Pro Rata Share of any
payments made by the Issuing Lender under such Letter of Credit. In consideration and in
furtherance of the foregoing, each Lender with a Revolver Commitment hereby absolutely and
unconditionally agrees to pay to Agent, for the account of the Issuing Lender, such Lender’s Pro
Rata Share of each L/C Disbursement made by the Issuing Lender and not reimbursed by Borrowers on
the date due as provided in Section 2.12(a), or of any reimbursement payment required to be
refunded to Borrowers for any reason. Each Lender with a Revolver Commitment acknowledges and
agrees that its obligation to deliver to Agent, for the account of the Issuing Lender, an amount
equal to its respective Pro Rata Share of each L/C Disbursement made by the Issuing Lender pursuant
to this Section 2.12(b) shall be absolute and unconditional and such remittance shall be
made notwithstanding the occurrence or continuation of an Event of Default or Default or the
failure to satisfy any condition set forth in Section 3. If any such Lender fails to make
available to Agent the amount of such Lender’s Pro Rata Share of each L/C Disbursement made by the
Issuing Lender in respect of such Letter of Credit as provided in this Section, such Lender shall
be deemed to be a Defaulting Lender and Agent (for the account of the Issuing Lender) shall be
entitled to recover such amount on demand from such Lender together with interest thereon at the
Defaulting Lender Rate until paid in full.

(c) Each Borrower hereby agrees to indemnify, save, defend, and hold the Lender Group harmless
from any loss, cost, expense, or liability, and reasonable attorneys fees incurred by the Lender
Group arising out of or in connection with any Letter of Credit; provided, however,
that no Borrower shall be obligated hereunder to indemnify for any loss, cost, expense, or
liability to the extent that it is caused by the gross negligence or willful misconduct of the
Issuing Lender or any other member of the Lender Group. Each Borrower agrees to be bound by the
Underlying Issuer’s regulations and interpretations of any Underlying Letter of Credit or by
Issuing Lender’s interpretations of any L/C issued by Issuing Lender to or for such Borrower’s
account, even though this interpretation may be different from such Borrower’s own, and each
Borrower understands and agrees that the Lender Group shall not be liable for any error,
negligence, or mistake, whether of omission or commission, in following Borrowers’ instructions or
those contained in the Letter of Credit or any modifications, amendments, or supplements thereto.
Each Borrower understands that the L/C Undertakings may require Issuing Lender to indemnify the
Underlying Issuer for certain costs or liabilities arising out of claims by Borrowers against such
Underlying Issuer. Each Borrower hereby agrees to indemnify, save, defend, and hold the Lender
Group harmless with respect to any loss, cost, expense (including reasonable attorneys fees), or
liability incurred by the Lender Group under any L/C Undertaking as a result of the Lender Group’s
indemnification of any Underlying Issuer; provided, however, that no Borrower shall
be obligated hereunder to indemnify for any loss, cost, expense, or liability to the extent that it
is caused by the gross negligence or willful misconduct of the Issuing Lender or any other member
of the Lender Group. Each Borrower hereby acknowledges and agrees that neither the Lender Group
nor the Issuing Lender shall be responsible for delays, errors, or omissions resulting from the
malfunction of equipment in connection with any Letter of Credit.

(d) Each Borrower hereby authorizes and directs any Underlying Issuer to deliver to the
Issuing Lender all instruments, documents, and other writings and property received by such
Underlying Issuer pursuant to such Underlying Letter of Credit and to accept and rely upon the
Issuing Lender’s instructions with respect to all matters arising in connection with such
Underlying Letter of Credit and the related application.

(e) Any and all issuance charges, commissions, fees, and costs incurred by the Issuing Lender
relating to Underlying Letters of Credit shall be Lender Group Expenses for purposes of this
Agreement and immediately shall be reimbursable by Borrowers to Agent for the account of the
Issuing Lender; it being acknowledged and agreed by each Borrower that, as of the Closing Date, the
issuance charge imposed by the prospective Underlying Issuer is .875% per annum times the undrawn
amount of each Underlying Letter of Credit, that such issuance charge may be changed from time to
time, and that the Underlying Issuer also imposes a schedule of charges for amendments, extensions,
drawings, and renewals.

(f) If by reason of (i) any change after the Closing Date in any applicable law, treaty, rule,
or regulation or any change in the interpretation or application thereof by any Governmental
Authority, or (ii) compliance by the Underlying Issuer or the Lender Group with any direction,
request, or requirement (irrespective of whether having the force of law) of any Governmental
Authority or monetary authority including, Regulation D of the Federal Reserve Board as from time
to time in effect (and any successor thereto):

(i) any reserve, deposit, or similar requirement is or shall be imposed or modified in respect
of any Letter of Credit issued hereunder, or

(ii) there shall be imposed on the Underlying Issuer or the Lender Group any other condition
regarding any Underlying Letter of Credit or any Letter of Credit issued pursuant hereto;

and the result of the foregoing is to increase, directly or indirectly, the cost to the Lender
Group of issuing, making, guaranteeing, or maintaining any Letter of Credit or to reduce the amount
receivable in respect thereof by the Lender Group, then, and in any such case, Agent may, at any
time within a reasonable period after the additional cost is incurred or the amount received is
reduced, notify Administrative Borrower, and Borrowers shall pay on demand such amounts as Agent
may specify to be necessary to compensate the Lender Group for such additional cost or reduced
receipt, together with interest on such amount from the date of such demand until payment in full
thereof at the rate then applicable to Base Rate Loans hereunder. The determination by Agent of
any amount due pursuant to this Section, as set forth in a certificate setting forth the
calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error,
be final and conclusive and binding on all of the parties hereto. Notwithstanding the provisions
of this paragraph, the Borrowers shall not be obligated to pay any amounts pursuant to this
paragraph for periods occurring prior to the 180th day before the giving of written demand
hereunder.

2.13. LIBOR Option.

(a) Interest and Interest Payment Dates. In lieu of having interest charged at the rate based
upon the Base Rate, Borrowers shall have the option (the “LIBOR Option”) to have interest
on all or a portion of the Advances be charged (whether at the time when made (unless otherwise
provided herein), upon conversion from a Base Rate Loan to a LIBOR Rate Loan, or upon continuation
of a LIBOR Rate Loan as a LIBOR Rate Loan) at a rate of interest based upon the LIBOR Rate.
Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the Interest
Period applicable thereto, (ii) the date on which all of the Obligations are accelerated pursuant
to the terms hereof, or (iii) the date on which this Agreement is terminated pursuant to the terms
hereof. On the last day of each applicable Interest Period, unless Administrative Borrower
properly has exercised the LIBOR Option with respect thereto, the interest rate applicable to such
LIBOR Rate Loan automatically shall convert to the rate of interest then applicable to Base Rate
Loans of the same type hereunder. At any time that an Event of Default has occurred and is
continuing, Borrowers no longer shall have the option to request that Advances bear interest at a
rate based upon the LIBOR Rate.

(b) LIBOR Election.

(i) Administrative Borrower may, at any time and from time to time, so long as no Event of
Default has occurred and is continuing, elect to exercise the LIBOR Option by notifying Agent prior
to 11:00 a.m. (California time) at least 3 Business Days prior to the commencement of the proposed
Interest Period (the “LIBOR Deadline”). Notice of Administrative Borrower’s election of
the LIBOR Option for a portion of the Advances shall be made by delivery to Agent of a LIBOR Notice
received by Agent before the LIBOR Deadline, or by telephonic notice received by Agent before the
LIBOR Deadline (to be confirmed by delivery to Agent of a LIBOR Notice received by Agent prior to
5:00 p.m. (California time) on the same day). Promptly upon its receipt of each such LIBOR Notice,
Agent shall provide a copy thereof to each of the affected Lenders.

(ii) Each LIBOR Notice shall be irrevocable and binding on Borrowers. In connection with each
LIBOR Rate Loan, each Borrower shall indemnify, defend, and hold Agent and the Lenders harmless
against any loss, cost, or expense incurred by Agent or any Lender as a result of (A) the payment
of any principal of any LIBOR Rate Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (B) the conversion of any LIBOR Rate Loan
other than on the last day of the Interest Period applicable thereto, or (C) the failure to borrow,
convert, continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR Notice delivered
pursuant hereto (such losses, costs, or expenses, “Funding Losses”). Funding Losses shall,
with respect to Agent or any Lender, be deemed to equal the amount determined by Agent or such
Lender to be the excess, if any, of (1) the amount of interest that would have accrued on the
principal amount of such LIBOR Rate Loan had such event not occurred, at the LIBOR Rate that would
have been applicable thereto, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow, convert, or
continue, for the period that would have been the Interest Period therefor), minus (2) the amount
of interest that would accrue on such principal amount for such period at the interest rate which
Agent or such Lender would be offered were it to be offered, at the commencement of such period,
Dollar deposits of a comparable amount and period in the London interbank market. A certificate of
Agent or a Lender delivered to Administrative Borrower setting forth any amount or amounts that
Agent or such Lender is entitled to receive pursuant to this Section 2.13 shall be
conclusive absent manifest error.

(iii) Borrowers shall have not more than 4 LIBOR Rate Loans in effect at any given time.
Borrowers only may exercise the LIBOR Option for LIBOR Rate Loans of at least $1,000,000 and
integral multiples of $500,000 in excess thereof.

(c) Prepayments. Borrowers may prepay LIBOR Rate Loans at any time; provided,
however, that in the event that LIBOR Rate Loans are prepaid on any date that is not the
last day of the Interest Period applicable thereto, including as a result of any automatic
prepayment through the required application by Agent of proceeds of Borrowers’ and their
Subsidiaries’ Collections in accordance with Section 2.4(b) or for any other reason,
including early termination of the term of this Agreement or acceleration of all or any portion of
the Obligations pursuant to the terms hereof, each Borrower shall indemnify, defend, and hold Agent
and the Lenders and their Participants harmless against any and all Funding Losses in accordance
with Section 2.13 (b)(ii) above.

(d) Special Provisions Applicable to LIBOR Rate.

(i) The LIBOR Rate may be adjusted by Agent with respect to any Lender on a prospective basis
to take into account any additional or increased costs to such Lender of maintaining or obtaining
any eurodollar deposits or increased costs, in each case, due to changes in applicable law
occurring subsequent to the commencement of the then applicable Interest Period, including changes
in tax laws (except changes of general applicability in corporate income tax laws) and changes in
the reserve requirements imposed by the Board of Governors of the Federal Reserve System (or any
successor), excluding the Reserve Percentage, which additional or increased costs would increase
the cost of funding or maintaining loans bearing interest at the LIBOR Rate. In any such event,
the affected Lender shall give Administrative Borrower and Agent notice of such a determination and
adjustment and Agent promptly shall transmit the notice to each other Lender and, upon its receipt
of the notice from the affected Lender, Administrative Borrower may, by notice to such affected
Lender (y) require such Lender to furnish to Administrative Borrower a statement setting forth the
basis for adjusting such LIBOR Rate and the method for determining the amount of such adjustment,
or (z) repay the LIBOR Rate Loans with respect to which such adjustment is made (together with any
amounts due under Section 2.13(b)(ii)).

(ii) In the event that any change in market conditions or any law, regulation, treaty, or
directive, or any change therein or in the interpretation of application thereof, shall at any time
after the date hereof, in the reasonable opinion of any Lender, make it unlawful or impractical for
such Lender to fund or maintain LIBOR Rate Loans or to continue such funding or maintaining, or to
determine or charge interest rates at the LIBOR Rate, such Lender shall give notice of such changed
circumstances to Agent and Administrative Borrower and Agent promptly shall transmit the notice to
each other Lender and (y) in the case of any LIBOR Rate Loans of such Lender that are outstanding,
the date specified in such Lender’s notice shall be deemed to be the last day of the Interest
Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of such Lender thereafter
shall accrue interest at the rate then applicable to Base Rate Loans, and (z) Borrowers shall not
be entitled to elect the LIBOR Option until such Lender determines that it would no longer be
unlawful or impractical to do so.

(e) No Requirement of Matched Funding. Anything to the contrary contained herein
notwithstanding, neither Agent, nor any Lender, nor any of their Participants, is required actually
to acquire eurodollar deposits to fund or otherwise match fund any Obligation as to which interest
accrues at the LIBOR Rate. The provisions of this Section shall apply as if each Lender or its
Participants had match funded any Obligation as to which interest is accruing at the LIBOR Rate by
acquiring eurodollar deposits for each Interest Period in the amount of the LIBOR Rate Loans.

2.14. Capital Requirements. If, after the date hereof, any Lender determines that
(i) the adoption of or change in any law, rule, regulation or guideline regarding capital
requirements for banks or bank holding companies, or any change in the interpretation or
application thereof by any Governmental Authority charged with the administration thereof, or
(ii) compliance by such Lender or its parent bank holding company with any guideline, request or
directive of any such entity regarding capital adequacy (whether or not having the force of law),
has the effect of reducing the return on such Lender’s or such holding company’s capital as a
consequence of such Lender’s Revolver Commitments hereunder to a level below that which such Lender
or such holding company could have achieved but for such adoption, change, or compliance (taking
into consideration such Lender’s or such holding company’s then existing policies with respect to
capital adequacy and assuming the full utilization of such entity’s capital) by any amount deemed
by such Lender to be material, then such Lender may notify Administrative Borrower and Agent
thereof. Following receipt of such notice, Borrowers agree to pay such Lender on demand the amount
of such reduction of return of capital as and when such reduction is determined, payable within 90
days after presentation by such Lender of a statement in the amount and setting forth in reasonable
detail such Lender’s calculation thereof and the assumptions upon which such calculation was based
(which statement shall be deemed true and correct absent manifest error). In determining such
amount, such Lender may use any reasonable averaging and attribution methods. Notwithstanding the
provisions of this paragraph, (a) the Borrowers shall not be obligated to pay any amounts pursuant
to this paragraph for periods occurring prior to the 180th day before the giving of written demand
hereunder and (b) the Borrowers shall not be obligated to pay any amounts to any Lender pursuant to
this paragraph unless such Lender is generally demanding payment under comparable provisions of its
agreements with similarly situated borrowers.

2.15. Joint and Several Liability of Borrowers.

(a) Each Borrower is accepting joint and several liability hereunder and under the other Loan
Documents in consideration of the financial accommodations to be provided by the Lender Group under
this Agreement, for the mutual benefit, directly and indirectly, of each Borrower and in
consideration of the undertakings of the other Borrowers to accept joint and several liability for
the Obligations.

(b) Each Borrower, jointly and severally, hereby irrevocably and unconditionally accepts, not
merely as a surety but also as a co-debtor, joint and several liability with the other Borrowers,
with respect to the payment and performance of all of the Obligations (including, without
limitation, any Obligations arising under this Section 2.15), it being the intention of the
parties hereto that all the Obligations shall be the joint and several obligations of each Borrower
without preferences or distinction among them.

(c) If and to the extent that any Borrower shall fail to make any payment with respect to any
of the Obligations as and when due or to perform any of the Obligations in accordance with the
terms thereof, then in each such event the other Borrowers will make such payment with respect to,
or perform, such Obligation.

(d) The Obligations of each Borrower under the provisions of this Section 2.15
constitute the absolute and unconditional, full recourse Obligations of each Borrower enforceable
against each Borrower to the full extent of its properties and assets, irrespective of the
validity, regularity or enforceability of this Agreement or any other circumstances whatsoever.

(e) Except as otherwise expressly provided in this Agreement, each Borrower hereby waives
notice of acceptance of its joint and several liability, notice of any Advances or Letters of
Credit issued under or pursuant to this Agreement, notice of the occurrence of any Default, Event
of Default, or of any demand for any payment under this Agreement, notice of any action at any time
taken or omitted by Agent or Lenders under or in respect of any of the Obligations and, generally,
to the extent permitted by applicable law, all demands, notices and other formalities of every kind
in connection with this Agreement (except as otherwise provided in this Agreement). Each Borrower
hereby assents to, and waives notice of, any extension or postponement of the time for the payment
of any of the Obligations, the acceptance of any payment of any of the Obligations, the acceptance
of any partial payment thereon, any waiver, consent or other action or acquiescence by Agent or
Lenders at any time or times in respect of any default by any other Borrower in the performance or
satisfaction of any term, covenant, condition or provision of this Agreement, any and all other
indulgences whatsoever by Agent or Lenders in respect of any of the Obligations, and the taking,
addition, substitution or release, in whole or in part, at any time or times, of any security for
any of the Obligations or the addition, substitution or release, in whole or in part, of any other
Borrower. Without limiting the generality of the foregoing, each Borrower assents to any other
action or delay in acting or failure to act on the part of any Agent or Lender with respect to the
failure by any other Borrower to comply with any of its respective Obligations, including, without
limitation, any failure strictly or diligently to assert any right or to pursue any remedy or to
comply fully with applicable laws or regulations thereunder, which might, but for the provisions of
this Section 2.15 afford grounds for terminating, discharging or relieving any other
Borrower, in whole or in part, from any of its Obligations under this Section 2.15, it
being the intention of each Borrower that, so long as any of the Obligations hereunder remain
unsatisfied, the Obligations of each Borrower under this Section 2.15 shall not be
discharged except by performance and then only to the extent of such performance. The Obligations
of each Borrower under this Section 2.15 shall not be diminished or rendered unenforceable
by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding
with respect to any other Borrower or any Agent or Lender.

(f) Each Borrower represents and warrants to Agent and Lenders that such Borrower is currently
informed of the financial condition of Borrowers and of all other circumstances which a diligent
inquiry would reveal and which bear upon the risk of nonpayment of the Obligations. Each Borrower
further represents and warrants to Agent and Lenders that such Borrower has read and understands
the terms and conditions of the Loan Documents. Each Borrower hereby covenants that such Borrower
will continue to keep informed of Borrowers’ financial condition, the financial condition of other
guarantors, if any, and of all other circumstances which bear upon the risk of nonpayment or
nonperformance of the Obligations.

(g) Each Borrower waives all rights and defenses arising out of an election of remedies by
Agent or any Lender, even though that election of remedies, such as a non-judicial foreclosure with
respect to security for a guaranteed obligation, has destroyed Agent’s or such Lender’s rights of
subrogation and reimbursement against such Borrower by the operation of Section 580(d) of the
California Code of Civil Procedure or otherwise.

(h) Each Borrower waives all rights and defenses that such Borrower may have because the
Obligations are secured by Real Property. This means, among other things:

(i) Agent and Lenders may collect from such Borrower without first foreclosing on any
Collateral pledged by Borrowers or any other Person;

(ii) If Agent or any Lender forecloses on any Real Property Collateral pledged by any
Borrower or any other Person:

(A) The amount of the Obligations may be reduced only by the price for which
that collateral is sold at the foreclosure sale, even if the collateral is worth
more than the sale price;

(B) Agent and Lenders may collect from such Borrower even if Agent or Lenders,
by foreclosing on the Real Property Collateral, has destroyed any right such
Borrower may have to collect from the other Borrowers.

(i) The provisions of this Section 2.15 are made for the benefit of Agent, Lenders and
their respective successors and assigns, and may be enforced by it or them from time to time
against any or all Borrowers as often as occasion therefor may arise and without requirement on the
part of any such Agent, Lender, successor or assign first to marshal any of its or their claims or
to exercise any of its or their rights against any Borrower or to exhaust any remedies available to
it or them against any Borrower or to resort to any other source or means of obtaining payment of
any of the Obligations hereunder or to elect any other remedy. The provisions of this Section
2.15 shall remain in effect until all of the Obligations shall have been paid in full or
otherwise fully satisfied. If at any time, any payment, or any part thereof, made in respect of
any of the Obligations, is rescinded or must otherwise be restored or returned by any Agent or
Lender upon the insolvency, bankruptcy or reorganization of any Borrower, or otherwise, the
provisions of this Section 2.15 will forthwith be reinstated in effect, as though such
payment had not been made.

(j) Each Borrower hereby agrees that it will not enforce any of its rights of contribution or
subrogation against any other Borrower with respect to any liability incurred by it hereunder or
under any of the other Loan Documents, any payments made by it to Agent or Lenders with respect to
any of the Obligations or any collateral security therefor until such time as all of the
Obligations have been paid in full in cash. Any claim which any Borrower may have against any
other Borrower with respect to any payments to any Agent or Lender hereunder or under any other
Loan Documents are hereby expressly made subordinate and junior in right of payment, without
limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior
payment in full in cash of the Obligations and, in the event of any insolvency, bankruptcy,
receivership, liquidation, reorganization or other similar proceeding under the laws of any
jurisdiction relating to any Borrower, its debts or its assets, whether voluntary or involuntary,
all such Obligations shall be paid in full in cash before any payment or distribution of any
character, whether in cash, securities or other property, shall be made to any other Borrower
therefor.

(k) Each Borrower hereby agrees that, after the occurrence and during the continuance of any
Default or Event of Default, the payment of any amounts due with respect to the indebtedness owing
by any Borrower to any other Borrower is hereby subordinated to the prior payment in full in cash
of the Obligations. Each Borrower hereby agrees that after the occurrence and during the
continuance of any Default or Event of Default, upon request of Agent, such Borrower will not
demand, sue for or otherwise attempt to collect any indebtedness of any other Borrower owing to
such Borrower until the Obligations shall have been paid in full in cash. If, notwithstanding the
foregoing sentence, such Borrower shall collect, enforce or receive any amounts in respect of such
indebtedness, such amounts shall be collected, enforced and received by such Borrower as trustee
for Agent, and such Borrower shall deliver any such amounts to Agent for application to the
Obligations in accordance with Section 2.4(b).

	3.	 	CONDITIONS; TERM OF AGREEMENT.

3.1. Conditions Precedent to the Initial Extension of Credit. The obligation of each
Lender to make its initial extension of credit provided for hereunder, is subject to the
fulfillment, to the satisfaction of Agent and each Lender of each of the conditions precedent set
forth on Schedule 3.1 in accordance with such Schedule 3.1.

3.2. Conditions Precedent to all Extensions of Credit. The obligation of the Lender
Group (or any member thereof) to make any Advances hereunder (or to extend any other credit
hereunder) at any time shall be subject to the following conditions precedent:

(a) the representations and warranties contained in this Agreement or in the other Loan
Documents shall be true and correct in all material respects (except that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified
or modified by materiality in the text thereof) on and as of the date of such extension of credit,
as though made on and as of such date (except to the extent that such representations and
warranties relate solely to an earlier date);

(b) no Default or Event of Default shall have occurred and be continuing on the date of such
extension of credit, nor shall either result from the making thereof;

(c) no injunction, writ, restraining order, or other order of any nature restricting or
prohibiting, directly or indirectly, the extending of such credit shall have been issued and remain
in force by any Governmental Authority against any Borrower, Agent, or any Lender; and

(d) no Material Adverse Change shall have occurred since the Closing Date.

3.3. Term. This Agreement shall continue in full force and effect for a term ending
on that date (the “Maturity Date”) that is the earliest to occur of: (a) the date on which
Agent provides written notice pursuant to the Financing Order to counsel to the Administrative
Borrower and counsel for any creditors committee of the occurrence and continuance of an Event of
Default and Agent’s election to cease funding and accelerate the Obligations and terminate the
Revolver Commitments pursuant to the terms of this Agreement; (b) the entry of an order converting
the Bankruptcy Case to a case under chapter 7 of the Code or dismissing the Bankruptcy Case; (c)
the effective date of any plan of reorganization or liquidation confirmed in the Bankruptcy Case;
(d) 90 calendar days after the date on which the interim Financing Order is entered by the
Bankruptcy Court, unless extended in writing by Agent; (e) the closing date of a sale of all or
substantially all of the Collateral pursuant to Bankruptcy Code § 363; (f) if the final Financing
Order authorizing the Borrowers to incur the Indebtedness hereunder on a final basis is not entered
on or before February 21, 2007; or (g) the date of the Final Hearing, if a final Financing Order
acceptable to Agent is not entered in connection therewith.

3.4. Effect of Termination. On the date of termination of this Agreement, all
Obligations (including contingent reimbursement obligations of Borrowers with respect to
outstanding Letters of Credit and including all Bank Product Obligations) immediately shall become
due and payable without notice or demand (including (a) either (i) providing cash collateral to be
held by Agent for the benefit of those Lenders with a Revolver Commitment in an amount equal to
105% of the Letter of Credit Usage, or (ii) causing the original Letters of Credit to be returned
to the Issuing Lender, and (b) providing cash collateral (in an amount determined by Agent as
sufficient to satisfy the reasonably estimated credit exposure) to be held by Agent for the benefit
of the Bank Product Providers with respect to the Bank Product Obligations). No termination of
this Agreement, however, shall relieve or discharge Borrowers or their Subsidiaries of their
duties, Obligations, or covenants hereunder or under any other Loan Document and the Agent’s Liens
in the Collateral shall remain in effect until all Obligations have been paid in full and the
Lender Group’s obligations to provide additional credit hereunder have been terminated. When this
Agreement has been terminated and all of the Obligations have been paid in full and the Lender
Group’s obligations to provide additional credit under the Loan Documents have been terminated
irrevocably, Agent will, at Borrowers’ sole expense, execute and deliver any termination
statements, lien releases, mortgage releases, re-assignments of trademarks, discharges of security
interests, and other similar discharge or release documents (and, if applicable, in recordable
form) as are reasonably requested by a Borrower to release, as of record, the Agent’s Liens and all
notices of security interests and liens previously filed by Agent with respect to the Obligations.

3.5. Early Termination by Borrowers. Borrowers have the option, at any time upon 5
days prior written notice by Administrative Borrower to Agent, to terminate this Agreement and
terminate the Revolver Commitments hereunder without premium or penalty by paying to Agent, in
cash, the Obligations (including (a) either (i) providing cash collateral to be held by Agent for
the benefit of those Lenders with a Revolver Commitment in an amount equal to 105% of the Letter of
Credit Usage, or (ii) causing the original Letters of Credit to be returned to the Issuing Lender,
and (b) providing cash collateral (in an amount determined by Agent as sufficient to satisfy the
reasonably estimated credit exposure) to be held by Agent for the benefit of the Bank Product
Providers with respect to the Bank Product Obligations), in full. If Administrative Borrower has
sent a notice of termination pursuant to the provisions of this Section, then the Revolver
Commitments shall terminate and Borrowers shall be obligated to repay the Obligations (including
(a) either (i) providing cash collateral to be held by Agent for the benefit of those Lenders with
a Revolver Commitment in an amount equal to 105% of the Letter of Credit Usage, or (ii) causing the
original Letters of Credit to be returned to the Issuing Lender, and (b) providing cash collateral
(in an amount determined by Agent as sufficient to satisfy the reasonably estimated credit
exposure) to be held by Agent for the benefit of the Bank Product Providers with respect to the
Bank Product Obligations), in full, on the date set forth as the date of termination of this
Agreement in such notice.

	4.	 	REPRESENTATIONS AND WARRANTIES.

In order to induce the Lender Group to enter into this Agreement, each Borrower makes the
following representations and warranties to the Lender Group which shall be true, correct, and
complete, in all material respects, as of the date hereof, and shall be true, correct, and
complete, in all material respects, as of the Closing Date, and at and as of the date of the making
of each Advance (or other extension of credit) made thereafter, as though made on and as of the
date of such Advance (or other extension of credit) (except to the extent that such representations
and warranties relate solely to an earlier date) and such representations and warranties shall
survive the execution and delivery of this Agreement:

4.1. No Encumbrances. Each Borrower and its Subsidiaries has good and indefeasible
title to, or a valid leasehold interest in, their personal property assets and good and marketable
title to, or a valid leasehold interest in, their Real Property, in each case, free and clear of
Liens except for Permitted Liens.

4.2. [Intentionally Reserved].

4.3. [Intentionally Reserved].

4.4. Equipment. Each material item of Equipment of Borrowers and their Subsidiaries
is used or held for use in their business and is in good working order, ordinary wear and tear and
damage by casualty excepted.

4.5. Location of Inventory and Equipment. The Inventory and Equipment (other than
vehicles or Equipment out for repair and Inventory and Equipment with an aggregate value at any one
U.S. domestic location of $50,000 or less ($300,000 or less in the case of any foreign location))
of Borrowers and their Subsidiaries are located only at, or in-transit between, to, or from, the
locations identified on Schedule 4.5 (as such Schedule may be updated pursuant to
Section 5.9).

4.6. Inventory Records. Each Borrower keeps correct and accurate records itemizing
and describing the type, quality, and quantity of its and its Subsidiaries’ Inventory and the book
value thereof.

4.7. Jurisdiction of Organization; Location of Chief Executive Office; Organizational
Identification Number; Commercial Tort Claims.

(a) The name of (within the meaning of Section 9-503 of the Code) and jurisdiction of
organization of each Borrower and each of its Subsidiaries is set forth on Schedule 4.7(a)
(as such Schedule may be updated from time to time to reflect changes permitted to be made under
Section 6.5).

(b) The chief executive office of each Borrower and each of its Subsidiaries is located at the
address indicated on Schedule 4.7(b) (as such Schedule may be updated from time to time to
reflect changes permitted to be made under Section 5.9).

(c) Each Borrower’s and each of its Subsidiaries’ tax identification numbers and
organizational identification numbers, if any, are identified on Schedule 4.7(c) (as such
Schedule may be updated from time to time to reflect changes permitted to be made under Section
6.5).

(d) As of the Closing Date, Borrowers and their U.S. Subsidiaries do not hold any commercial
tort claims in excess of $50,000 individually, except as set forth on Schedule 4.7(d).

4.8. Due Organization and Qualification; Subsidiaries.

(a) Each Borrower and each of its Subsidiaries is duly organized and existing and in good
standing (or the foreign equivalent thereof) under the laws of the jurisdiction of its organization
and qualified to do business in any state where the failure to be so qualified reasonably could be
expected to result in a Material Adverse Change.

(b) Set forth on Schedule 4.8(b) (as such Schedule may be updated from time to time to
reflect changes permitted to be made under Section 5.16), is a complete and accurate
description of the authorized capital Stock of each Borrower, by class, and, as of the Closing
Date, a description of the number of shares of each such class that are issued and outstanding.
Other than as described on Schedule 4.8(b), there are no subscriptions, options, warrants,
or calls relating to any shares of each Borrower’s capital Stock, including any right of conversion
or exchange under any outstanding security or other instrument. No Borrower is subject to any
obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its
capital Stock or any security convertible into or exchangeable for any of its capital Stock.

(c) Set forth on Schedule 4.8(c) (as such Schedule may be updated from time to time to
reflect changes permitted to be made under Section 5.16), is a complete and accurate list
of each Borrower’s direct and indirect Subsidiaries, showing: (i) the jurisdiction of their
organization, (ii) the number of shares of each class of common and preferred Stock authorized for
each of such Subsidiaries, and (iii) the number and the percentage of the outstanding shares of
each such class owned directly or indirectly by the applicable Borrower. All of the outstanding
capital Stock of each such Subsidiary has been validly issued and is fully paid and non-assessable.

(d) Except as set forth on Schedule 4.8(c), there are no subscriptions, options,
warrants, or calls relating to any shares of any Borrower’s Subsidiaries’ capital Stock, including
any right of conversion or exchange under any outstanding security or other instrument. No
Borrower or any of its respective Subsidiaries is subject to any obligation (contingent or
otherwise) to repurchase or otherwise acquire or retire any shares of any Borrower’s Subsidiaries’
capital Stock or any security convertible into or exchangeable for any such capital Stock.

4.9. Due Authorization; No Conflict.

(a) Subject to the approval of the Bankruptcy Court pursuant to the Financing Order, as to
each Borrower, the execution, delivery, and performance by such Borrower of this Agreement and the
Loan Documents to which it is a party have been duly authorized by all necessary action on the part
of such Borrower.

(b) Subject to the approval of the Bankruptcy Court pursuant to the Financing Order, as to
each Borrower, the execution, delivery, and performance by such Borrower of this Agreement and the
other Loan Documents to which it is a party do not and will not (i) violate any provision of
federal, state, or local law or regulation applicable to any Borrower, the Governing Documents of
any Borrower, or any order, judgment, or decree of any court or other Governmental Authority
binding on any Borrower, (ii) conflict with, result in a breach of, or constitute (with due notice
or lapse of time or both) a default under any material contractual obligation of any Borrower,
(iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any
properties or assets of Borrower, other than Permitted Liens, or (iv) require any approval of any
Borrower’s stockholders or any approval or consent of any Person under any material contractual
obligation of any Borrower, other than consents or approvals that have been obtained and that are
still in force and effect.

(c) Subject to the approval of the Bankruptcy Court pursuant to the Financing Order, the
execution, delivery, and performance by each Borrower of this Agreement and the other Loan
Documents to which such Borrower is a party do not and will not require any registration with,
consent, or approval of, or notice to, or other action with or by, any Governmental Authority,
other than consents or approvals that have been obtained and that are still in force and effect.

(d) Subject to the approval of the Bankruptcy Court pursuant to the Financing Order, as to
each Borrower, this Agreement and the other Loan Documents to which such Borrower is a party, and
all other documents contemplated hereby and thereby, when executed and delivered by such Borrower
will be the legally valid and binding obligations of such Borrower, enforceable against such
Borrower in accordance with their respective terms.

(e) Subject to the approval of the Bankruptcy Court pursuant to the Financing Order, the
Agent’s Liens are validly created, perfected, and first priority Liens (other than with respect to
the Retained Professionals Carveout and UST Fees) and there are no other Liens on any of the
Collateral other than Permitted Liens.

(f) The execution, delivery, and performance by each Guarantor of the Loan Documents to which
it is a party have been duly authorized by all necessary action on the part of such Guarantor.

(g) The execution, delivery, and performance by each Guarantor of the Loan Documents to which
it is a party do not and will not (i) violate any provision of federal, state, or local law or
regulation applicable to such Guarantor, the Governing Documents of such Guarantor, or any order,
judgment, or decree of any court or other Governmental Authority binding on such Guarantor,
(ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both)
a default under any material contractual obligation of such Guarantor, (iii) result in or require
the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of
such Guarantor, other than Permitted Liens, or (iv) require any approval of such Guarantor’s
interestholders or any approval or consent of any Person under any material contractual obligation
of such Guarantor, other than consents or approvals that have been obtained and that are still in
force and effect.

(h) The execution, delivery, and performance by each Guarantor of the Loan Documents to which
such Guarantor is a party do not and will not require any registration with, consent, or approval
of, or notice to, or other action with or by, any Governmental Authority, other than (i) consents
or approvals that have been obtained and that are still in force and effect and (ii) registration
of each of the UK Security Documents with (a) the United Kingdom Registrar of Companies and (b)
Registers of Scotland (as applicable) (together the “UK Registrations”).

(i) The Loan Documents to which each Guarantor is a party, and all other documents
contemplated hereby and thereby, when executed and delivered by such Guarantor will be the legally
valid and binding obligations of such Guarantor, enforceable against such Guarantor in accordance
with their respective terms, except as enforcement may be limited by equitable principles or by
bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting
creditors’ rights generally.

4.10. Litigation. Other than the Bankruptcy Case and other than those matters
disclosed on Schedule 4.10 and other than matters arising after the Closing Date that
reasonably could not be expected to result in a Material Adverse Change, there are no actions,
suits, or proceedings pending or, to the best knowledge of each Borrower, threatened against any
Borrower or any of its Subsidiaries.

4.11. Financial Statements. All financial statements relating to Borrowers and their
Subsidiaries that have been delivered by Borrowers to the Lender Group have been prepared in
accordance with GAAP (except, in the case of unaudited financial statements, for the lack of
footnotes and being subject to year-end audit adjustments) and present fairly in all material
respects, Borrowers’ and their Subsidiaries’ financial condition as of the date thereof and results
of operations for the period then ended.

4.12. Dormant Subsidiaries . Each of Lilliput Lane Limited, Border Fine Arts Company
Limited, Fine Ceramic Transfer Limited, Bilston & Battersea Enamels Limited, Enesco (2004) Ltd.,
Enesco (2005) Ltd., Enesco (2006) Ltd. and Stanley Home Produtos de Limpeza Ltda. is a Dormant
Subsidiary.

4.13. Employee Benefits. Except as set forth on Schedule 4.13, none of
Borrowers, any of their Subsidiaries, or any of their ERISA Affiliates maintains or contributes to
any Benefit Plan.

4.14. Environmental Condition. Except as set forth on Schedule 4.14, (a) to
Borrowers’ knowledge, none of Borrowers’ or their Subsidiaries’ properties or assets has ever been
used by Borrowers, their Subsidiaries, or by previous owners or operators in the disposal of, or to
produce, store, handle, treat, release, or transport, any Hazardous Materials, where such use,
production, storage, handling, treatment, release or transport was in violation, in any material
respect, of any applicable Environmental Law, (b) to Borrowers’ knowledge, none of Borrowers’ nor
their Subsidiaries’ properties or assets has ever been designated or identified in any manner
pursuant to any environmental protection statute as a Hazardous Materials disposal site, (c) none
of Borrowers nor any of their Subsidiaries have received notice that a Lien arising under any
Environmental Law has attached to any revenues or to any Real Property owned or operated by
Borrowers or their Subsidiaries, and (d) none of Borrowers nor any of their Subsidiaries have
received a material summons, citation, notice, or directive from the United States Environmental
Protection Agency or any other federal or state governmental agency concerning any action or
omission by any Borrower or any Subsidiary of a Borrower resulting in the releasing or disposing of
Hazardous Materials into the environment which could reasonably be expected to result in a Material
Adverse Change.

4.15. Intellectual Property. Each Borrower and each Subsidiary of a Borrower owns, or
holds licenses in, all trademarks, trade names, copyrights, patents, patent rights, and licenses
that are necessary to the conduct of its business as currently conducted, and attached hereto as
Schedule 4.15 (as updated from time to time) is a true, correct, and complete listing of
all material patents, patent applications, trademarks, trademark applications, copyrights, and
copyright registrations as to which each Borrower or one of its Subsidiaries is the owner or is an
exclusive licensee; provided, however, that Borrowers may amend Schedule
4.15 to add additional property so long as such amendment occurs by written notice to Agent not
less than 2 days before the date on which a Borrower or any Subsidiary of Borrower acquires any
such property after the Closing Date and Schedule 4.15 will automatically be deemed amended
without any further consent of the Agent or any Lender.

4.16. Leases. Borrowers and their Subsidiaries enjoy peaceful and undisturbed
possession under all leases material to their business and to which they are parties or under which
they are operating and all of such material leases are valid and subsisting. 

4.17. Deposit Accounts and Securities Accounts. Set forth on Schedule 4.17 is
a listing of all of Borrowers’ and their Subsidiaries’ Deposit Accounts and Securities Accounts as
of the date hereof, including, with respect to each bank or securities intermediary (a) the name
and address of such Person, and (b) the account numbers of the Deposit Accounts or Securities
Accounts maintained with such Person.

4.18. Complete Disclosure. All factual information (taken as a whole) furnished by or
on behalf of Borrowers or their Subsidiaries in writing to Agent or any Lender (including all
information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in
connection with this Agreement, the other Loan Documents, or any transaction contemplated herein or
therein is, and all other such factual information (taken as a whole) hereafter furnished by or on
behalf of Borrowers or their Subsidiaries in writing to Agent or any Lender will be, true and
accurate in all material respects on the date as of which such information is dated or certified
and not incomplete by omitting to state any material fact necessary to make such information (taken
as a whole) not misleading in any material respect at such time in light of the circumstances under
which such information was provided. Any Projections that are delivered to Agent will represent,
Borrowers’ good faith estimate of their and their Subsidiaries’ future performance for the periods
covered thereby based upon assumptions believed by Borrowers to be reasonable at the time of the
delivery thereof to Agent (it being understood that such projections and forecasts are subject to
uncertainties and contingencies, many of which are beyond the control of Borrowers and their
Subsidiaries and no assurances can be given that such projections or forecasts will be realized).

4.19. Indebtedness. Set forth on Schedule 4.19 is a true and complete list of
all Indebtedness of each Borrower and each Subsidiary of a Borrower outstanding immediately prior
to the Closing Date that is to remain outstanding after the Closing Date and such Schedule
accurately sets forth the aggregate principal amount of such Indebtedness as of the Closing Date.

4.20. Matters Relating to Liens and Property Rights. The entry of the Financing Order
is effective to create in favor of Agent, for the benefit of Lenders, as security for the
Obligations, (i) a valid first priority (other than with respect to the Retained Professionals
Carveout and UST Fees) Lien on all of the Collateral, and (ii) an allowed administrative expense in
the Bankruptcy Case having priority under Section 364(c)(1) of the Bankruptcy Code over all other
administrative expenses, subject only to the Retained Professionals Carveout and UST Fees. Except
for the Financing Order and the UK Registrations, no authorization, approval or other action by,
and no notice to or filing with, any Governmental Authority is required for either (i) the pledge
or grant by any Borrower or any or its Subsidiaries of the Liens purported to be created in favor
of Agent pursuant to this Agreement or any of the Loan Documents or (ii) the exercise by Agent of
any rights or remedies in respect of any Collateral (whether specifically granted or created
pursuant to this Agreement, any of the Loan Documents or created or provided for by applicable
law), except as may be required, in connection with the disposition of any pledged Collateral, by
laws generally affecting the offering and sale of securities.

4.21. Budget. The Budget was prepared by Borrowers’ financial personnel and
represents the good faith belief of such Persons at such time as to the probable course of
Borrowers’ business and financial affairs, over the periods shown therein, subject to the
assumptions stated therein.

	5.	 	AFFIRMATIVE COVENANTS.

Each Borrower covenants and agrees that, until termination of all of the Revolver Commitments
and payment in full of the Obligations (other than Bank Product Obligations and unasserted
contingent obligations that survive the termination of this Agreement), Borrowers shall and shall
cause each of their respective Subsidiaries to do all of the following (provided that Borrowers
shall not be required to cause Enesco France S.A. to do any of the following if doing so would
cause such Subsidiary to violate any provision of its credit facility as such credit facility
exists as of the date hereof):

5.1. Accounting System. Maintain a system of accounting that enables Borrowers to
produce financial statements in accordance with GAAP and maintain records pertaining to the
Collateral that contain information as from time to time reasonably may be requested by Agent.
Borrowers also shall keep a reporting system that shows all additions, sales, claims, returns, and
allowances with respect to their and their Subsidiaries’ sales.

5.2. Collateral Reporting. Provide Agent (and if so requested by Agent, with copies
for each Lender) with each of the reports and documents set forth on Schedule 5.2 at the
times specified therein.

5.3. Financial Statements, Reports, Certificates. Deliver to Agent, with copies to
each Lender, each of the financial statements, reports, or other items set forth on
Schedule 5.3 at the times specified therein. In addition, Parent agrees that no Subsidiary
of Parent will have a fiscal year different from that of Parent.

5.4. Guarantor Reports Cause each Guarantor to deliver its annual financial
statements at the time when Parent provides its audited financial statements to Agent, but only to
the extent such Guarantor’s financial statements are not consolidated with Parent’s financial
statements.

5.5. Inspection. Permit Agent, each Lender, and each of their duly authorized
representatives or agents to visit any of its properties and inspect any of its assets or books and
records, to examine and make copies of its books and records, and to discuss its affairs, finances,
and accounts with, and to be advised as to the same by, its officers and employees at such
reasonable times and intervals as Agent or any such Lender may designate and, so long as no Default
or Event of Default exists, with reasonable prior notice to Administrative Borrower. Without
limiting the foregoing, Agent may engage appraisers to conduct appraisals of the Collateral from
time to time.

5.6. Maintenance of Properties. Within the restrictions set forth in the Budget,
maintain and preserve all of their properties which are necessary or useful in the proper conduct
of their business in good working order and condition, ordinary wear, tear, and casualty excepted
(except where the failure to do so could not reasonably be expected to result in a Material Adverse
Change) , and comply at all times with the provisions of all material leases to which it is a party
as lessee, so as to prevent any loss or forfeiture thereof or thereunder.

5.7. Taxes. Cause all material assessments and income, franchise, and other material
taxes with respect to periods after the Filing Date, whether real, personal, or otherwise, due or
payable by, or imposed, levied, or assessed against Borrowers, their Subsidiaries, or any of their
respective assets to be paid in full, before delinquency or before the expiration of any extension
period (including any extension by virtue of the Bankruptcy Case), except to the extent that the
validity of such assessment or tax shall be the subject of a Permitted Protest. Borrowers will and
will cause their Subsidiaries to make timely payment or deposit of all tax payments and withholding
taxes required of them by applicable laws, including those laws concerning F.I.C.A., F.U.T.A.,
state disability, and local, state, and federal income taxes, and will, upon reasonable request,
furnish Agent with proof reasonably satisfactory to Agent indicating that the applicable Borrower
or Subsidiary of a Borrower has made such payments or deposits.

5.8. Insurance.

(a) At Borrowers’ expense, maintain insurance respecting their and their Subsidiaries’ assets
wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and
risks as ordinarily are insured against by other Persons engaged in the same or similar businesses.
Borrowers also shall maintain business interruption, public liability, and product liability
insurance, as well as insurance against larceny, embezzlement, and criminal misappropriation. All
such policies of insurance shall be in such amounts and with such insurance companies as are
reasonably satisfactory to Agent. Borrowers shall deliver copies of all such policies to Agent
with an endorsement naming Agent as the sole loss payee (under a satisfactory lender’s loss payable
endorsement) or additional insured, as appropriate. Each policy of insurance or endorsement shall
contain a clause requiring the insurer to endeavor to give not less than 30 days prior written
notice to Agent in the event of cancellation of the policy for any reason whatsoever (except 10
days prior written notice shall be sufficient for cancellation of the policy for non-payment of
premium).

(b) Administrative Borrower shall give Agent prompt notice of any loss exceeding $100,000
covered by such insurance. So long as no Event of Default has occurred and is continuing,
Borrowers shall have the exclusive right to adjust any losses payable under any such insurance
policies which are less than $100,000. Following the occurrence and during the continuation of an
Event of Default, or in the case of any losses payable under such insurance exceeding $100,000,
Agent shall have the exclusive right to adjust any losses payable under any such insurance
policies, without any liability to Borrowers whatsoever in respect of such adjustments (it being
agreed that this Section 5.8 does not apply to any executive risk, director’s and officer’s
liability or other similar insurance).

5.9. Location of Inventory and Equipment. Keep Borrowers’ and their Subsidiaries’
Inventory and Equipment (other than vehicles and Equipment out for repair) with an aggregate value
in excess of $50,000 at any location ($300,000 in the case of any foreign location) only at the
locations identified on Schedule 4.5 and their chief executive offices only at the
locations identified on Schedule 4.7(b); provided, however, that
Administrative Borrower may amend Schedule 4.5 or Schedule 4.7(b) so long as such
amendment occurs by written notice to Agent prior to the date on which such Inventory or Equipment
is moved to such new location or such chief executive office is relocated (and Schedules
4.5 and 4.7(b) will automatically be deemed so amended without any further consent of
the Agent or any Lender), and so long as the applicable Borrower uses commercially reasonable
efforts to provide Agent a Collateral Access Agreement with respect thereto.

5.10. Compliance with Laws. Comply with the requirements of all applicable laws,
rules, regulations, and orders of any Governmental Authority, other than laws, rules, regulations,
and orders the non-compliance with which, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Change.

5.11. Leases. Pay when due all rents and other amounts accruing or becoming due after
the Filing Date and payable under any material leases to which any Borrower or any Subsidiary of a
Borrower is a party or by which any Borrower’s or any of its Subsidiaries’ properties and assets
are bound with respect to periods after the Filing Date, unless such payments are the subject of a
Permitted Protest.

5.12. Existence. At all times preserve and keep in full force and effect each
Borrower’s and each of its Subsidiaries’, valid existence and good standing in its jurisdiction of
organization and, except as could not reasonably be expected to result in a Material Adverse
Change, any rights, franchises, permits, licenses, accreditations, authorizations, or other
approvals material to their businesses.

5.13. Environmental. (a) Keep any property either owned or operated by any Borrower
or any Subsidiary of a Borrower free of any Environmental Liens or post bonds or other financial
assurances sufficient to satisfy the obligations or liability evidenced by such Environmental
Liens, (b) comply, in all material respects, with Environmental Laws and provide to Agent
documentation of such compliance which Agent reasonably requests, (c) promptly notify Agent of any
release of a Hazardous Material in any reportable quantity from or onto property owned or operated
by any Borrower or any Subsidiary of a Borrower and take any Remedial Actions required to abate
said release or otherwise to come into compliance with applicable Environmental Law, and
(d) promptly, but in any event within 5 days of its receipt thereof, provide Agent with written
notice of any of the following: (i) notice that an Environmental Lien has been filed against any
of the real or personal property of any Borrower or any Subsidiary of a Borrower, (ii) commencement
of any Environmental Action or notice that an Environmental Action will be filed against any
Borrower or any Subsidiary of a Borrower, and (iii) notice of a violation, citation, or other
administrative order which reasonably could be expected to result in a Material Adverse Change.

5.14. Disclosure Updates. Promptly and in no event later than 5 Business Days after
obtaining knowledge thereof, notify Agent if any written information, exhibit, or report furnished
to the Lender Group contained, at the time it was furnished, any untrue statement of a material
fact or omitted to state any material fact necessary to make the statements contained therein not
misleading in light of the circumstances in which made. The foregoing to the contrary
notwithstanding, any notification pursuant to the foregoing provision will not cure or remedy the
effect of the prior untrue statement of a material fact or omission of any material fact nor shall
any such notification have the effect of amending or modifying this Agreement or any of the
Schedules hereto.

5.15. Control Agreements. Notify Agent in writing prior to opening any new Securities
Account or Deposit Account and take all steps reasonably required by Agent in order for Agent to
obtain control in accordance with Sections 8-106, 9-104, 9-105, 9-106, and 9-107 of the Code with
respect to (subject to the proviso contained in Section 6.12) all of its Securities
Accounts, Deposit Accounts, electronic chattel paper, investment property, and letter-of-credit
rights.

5.16. Formation of Subsidiaries. At the time that any Borrower or any Subsidiary
forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the
Closing Date, such Borrower or such Subsidiary shall (a) cause such new Subsidiary to provide to
Agent a joinder to the Guaranty and the Security Agreement, together with such other security
documents (including Mortgages with respect to any Real Property of such new Subsidiary), as well
as appropriate financing statements (and with respect to all property subject to a Mortgage,
fixture filings), all in form and substance reasonably satisfactory to Agent (including being
sufficient to grant Agent a first priority Lien (subject only to Permitted Liens) in and to the
assets of such newly formed or acquired Subsidiary), (b) provide to Agent a pledge agreement and
appropriate certificates and powers or financing statements, hypothecating all of the direct or
beneficial ownership interest in such new Subsidiary, in form and substance reasonably satisfactory
to Agent, and (c) provide to Agent all other documentation, including one or more opinions of
counsel reasonably satisfactory to Agent, which in its opinion is appropriate with respect to the
execution and delivery of the applicable documentation referred to above (including policies of
title insurance or other documentation with respect to all property subject to a Mortgage). Any
document, agreement, or instrument executed or issued pursuant to this Section 5.16 shall
be a Loan Document. Upon complying with this Section, Administrative Borrower may amend
Schedule 4.8(b) or Schedule 4.8(c) by sending updated schedules to the Agent and
such schedules shall be deemed to be automatically amended without further consent from the Agent
or any Lender.

5.17. Further Assurances. At any time upon the request of Agent, Borrowers shall
execute or deliver to Agent, and shall cause their Subsidiaries to execute or deliver to Agent, any
and all financing statements, fixture filings, security agreements, pledges, assignments,
endorsements of certificates of title, mortgages, deeds of trust, opinions of counsel, and all
other documents (collectively, the “Additional Documents”) that Agent may reasonably
request in form and substance reasonably satisfactory to Agent, to create, perfect, and continue
perfected or to better perfect the Agent’s Liens in all of the properties and assets of Borrowers
and their Subsidiaries (whether now owned or hereafter arising or acquired, tangible or intangible,
real or personal), to create and perfect Liens in favor of Agent in any Real Property acquired by
Borrowers or their Subsidiaries after the Closing Date, and in order to fully consummate all of the
transactions contemplated hereby and under the other Loan Documents. To the maximum extent
permitted by applicable law, Borrowers authorize Agent to execute any such Additional Documents in
Borrowers’ or their Subsidiaries’ names, as applicable, and authorizes Agent to file such executed
Additional Documents in any appropriate filing office.

5.18. Consultants/Financial Advisor. Upon the request of Agent, retain a consultant,
or such other management consulting firm acceptable to Agent, or such other financial
advisory/investment banking firm acceptable to Agent, which shall assist Borrowers in the
management of their businesses, including assisting Borrowers in the preparation of forecasts and
projections and the development and implementation of strategies with respect to the marketing for
sale of their businesses and properties and in connection with maximizing the value of the
Collateral. Borrowers hereby irrevocably authorize and instruct each such Person to share with
Agent and Lenders all budgets, records, projections, financial information, reports and other
information relating to the Collateral, the financial condition, operations and the sale/marketing
process of the Borrowers’ businesses, except to the extent access to such information would
compromise the Borrowers’ attorney-client privilege. Borrowers agree to provide each such Person,
Agent and each Lender with complete access to all of the Borrowers’ books and records, all of
Borrowers’ premises and to Borrowers’ management as and when deemed necessary by any such Person,
the Agent or such Lender. It is the understanding of the parties, that as of the Closing Date, the
Agent has no intention to require the retention of a consultant or any other firm described above,
and that the basis for doing so would likely be limited to a concern over deteriorating collateral
values or the belief that a Default or Event of Default has or will occur.

	6.	 	NEGATIVE COVENANTS.

Each Borrower covenants and agrees that, until termination of all of the Commitments and
payment in full of the Obligations (other than Bank Product Obligations and unasserted contingent
obligations that survive the termination of this Agreement), Borrowers will not and will not permit
any of their respective Subsidiaries to do any of the following (provided that Borrowers may permit
Enesco France S.A. to do any of the following to the extent that such Subsidiary is required to do
so pursuant to any provision of its credit facility as such credit facility exists as of the date
hereof)::

6.1. Indebtedness. Create, incur, assume, suffer to exist, guarantee, or otherwise
become or remain, directly or indirectly, liable with respect to any Indebtedness, except:

(a) Indebtedness evidenced by this Agreement and the other Loan Documents, together with
Indebtedness owed to Underlying Issuers with respect to Underlying Letters of Credit,

(b) Indebtedness set forth on Schedule 4.19 and any refinancings, renewals or
replacements thereof provided the principal amount of such Indebtedness shall not be increased
(other than by accrued interest),

(c) Permitted Purchase Money Indebtedness,

(d) endorsement of instruments or other payment items for deposit,

(e) Indebtedness permitted to be incurred in accordance with the Financing Order, and

(f) Indebtedness consisting of Permitted Investments.

6.2. Liens. Create, incur, assume, or suffer to exist, directly or indirectly, any
Lien on or with respect to any of its assets, of any kind, whether now owned or hereafter acquired,
or any income or profits therefrom, except for Permitted Liens. Notwithstanding anything to the
contrary in this Agreement or other Loan Documents, Borrowers shall not, and shall not permit any
of their respective Subsidiaries to, directly or indirectly, create, assume or suffer to exist any
Lien with priority over the Liens created by the Loan Documents, except the Permitted Liens
securing the Retained Professionals Carveout and UST Fees.

6.3. Restrictions on Fundamental Changes.

(a) Enter into any merger, consolidation, reorganization, or recapitalization, or reclassify
its Stock,

(b) Except for Dormant Subsidiaries, liquidate, wind up, or dissolve itself (or suffer any
liquidation or dissolution),

(c) Suspend or go out of a substantial portion of its or their business.

6.4. Disposal of Assets. Other than Permitted Dispositions, convey, sell, lease,
license, assign, transfer, or otherwise dispose of (or enter into an agreement (other than an
agreement with Voting Participant) to convey, sell, lease, license, assign, transfer, or otherwise
dispose of) any of the assets of any Borrowers or any Subsidiary of a Borrower.

6.5. Change Name. Change any Borrower’s or any of its Subsidiaries’ name,
organizational identification number, state of organization or organizational identity, in each
case, if applicable; provided, however, that a Borrower or a Subsidiary of a
Borrower may change its name upon at least 10 days prior written notice by Administrative Borrower
to Agent of such change and so long as, at the time of such written notification, such Borrower or
such Subsidiary provides any financing statements necessary to perfect and continue perfected the
Agent’s Liens.

6.6. Nature of Business. Make any change in the nature of their business as described
in Schedule 6.6 or acquire any properties or assets that are not reasonably related to the
conduct of such business activities.

6.7. Prepayments and Amendments.

(a) Optionally prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of any
Borrower or any Subsidiary of a Borrower, other than the Obligations in accordance with this
Agreement or pursuant to the Financing Order and other than Indebtedness of non-U.S. Subsidiaries
evidenced by Hedge Agreements which are terminated in the ordinary course of business consistent
with past practices,

(b) make any payment on account of Indebtedness that has been contractually subordinated in
right of payment if such payment is not permitted at such time under the subordination terms and
conditions, or

(c) directly or indirectly, amend, modify, alter, increase, or change any of the terms or
conditions of any agreement, instrument, document, indenture, or other writing evidencing or
concerning Indebtedness permitted under Section 6.1(b) to be less favorable to any Borrower
or any Subsidiary.

6.8. Change of Control. Cause, permit, or suffer, directly or indirectly, any Change
of Control.

6.9. Consignments. Consign Inventory or sell any of their Inventory in an aggregate
amount greater than $60,000 on bill and hold, sale or return, sale on approval, or other
conditional terms of sale.

6.10. Distributions. Make any distribution or declare or pay any dividends (in cash
or other property, other than common Stock) on, or purchase, acquire, redeem, or retire any of
Parent’s Stock, of any class, whether now or hereafter outstanding.

6.11. Accounting Methods. Modify or change their fiscal year or their method of
accounting (other than as may be required to conform to GAAP) or enter into, modify, or terminate
any agreement currently existing, or at any time hereafter entered into with any third party
accounting firm or service bureau for the preparation or storage of Borrowers’ or their
Subsidiaries’ accounting records without said accounting firm or service bureau agreeing to provide
Agent information regarding Borrowers’ and their Subsidiaries’ financial condition.

6.12. Investments. Except for Permitted Investments, directly or indirectly, make or
acquire any Investment or incur any liabilities (including contingent obligations) for or in
connection with any Investment.

6.13. Transactions with Affiliates. Directly or indirectly enter into or permit to
exist any transaction with any Affiliate of any Borrower or any Subsidiary of a Borrower except
for:

(a) transactions solely among Borrowers or their Subsidiaries or any combination of the
foregoing in the ordinary course of business and consistent with the Budget and past practices;

(b) transactions (other the payment of management, consulting, monitoring, or advisory fees)
between Borrowers or their Subsidiaries, on the one hand, and any Affiliate of Borrowers or their
Subsidiaries, on the other hand, so long as such transactions (i) are upon fair and reasonable
terms, (ii) are fully disclosed to Agent if they involve one or more payments by any Borrower or
any of Subsidiary of a Borrower in excess of $25,000 for any single transaction or series of
transactions, and (iii) are no less favorable to Borrowers or their Subsidiaries, as applicable,
than would be obtained in an arm’s length transaction with a non-Affiliate; and

(c) the payment of reasonable fees, compensation, severance (to the extent included in the
Budget) or employee benefit arrangements to, and any indemnity provided for the benefit of,
officers and directors of Parent in the ordinary course of business and consistent with past
practice.

6.14. Use of Proceeds. Use the proceeds of the Advances for any purpose other than
(a) on the Closing Date, (i) to satisfy and extinguish the outstanding principal, accrued interest,
and accrued fees and expenses and any other indebtedness owing to Existing Lender, and (ii) to pay
transactional fees, costs, and expenses incurred in connection with this Agreement, the other Loan
Documents, and the transactions contemplated hereby and thereby, and (b) thereafter, consistent
with the terms and conditions hereof, for its lawful and permitted purposes as permitted by, and
consistent in all respects with, the Budget and the Financing Order.

6.15. Inventory and Equipment with Bailees. Store the Inventory or Equipment of
Borrowers or their Subsidiaries with an aggregate value in excess of $100,000 at any time now or
hereafter with a bailee, warehouseman, or similar party unless the applicable Borrower or
Subsidiary shall have used commercially reasonable efforts to have the applicable bailee,
warehouseman, or similar party execute and deliver to Agent a Collateral Access Agreement.

6.16. Budget. (a) As of any Friday after the Closing Date, have total cash receipts
of less than 90% of the “Total Cash Receipts” set forth in the Budget, measured cumulatively, for
the week(s) ended on such Friday, or (b) have made, as of any week set forth in the Budget, cash
disbursements for post-petition payables in an amount that exceeds 110% of the applicable budgeted
amount of “Post-Petition Cash Disbursements” set forth in the Budget, measured cumulatively for
such week(s), as set forth in the Budget, or (c) have made, as of any week set forth in the Budget,
cash disbursements for pre-petition payables in an amount that exceeds 110% of the applicable
budgeted amount of “Pre-Petition Cash Disbursements” set forth in the Budget, measured cumulatively
for such week(s), as set forth in the Budget, or (d) as of any Friday after the Closing Date, have
net cash flow (defined as total cash receipts less total cash disbursements for post-petition
payables) set forth in the Budget, measured cumulatively, of less than 90% of the “Net Cash Flow”
set forth in the Budget for the week(s) ended on such Friday.

6.17. Financing Order; Administrative Expense Priority; Lien Priority; Payments.

(i) Seek, consent to or suffer to exist at any time any modification, stay, vacation or
amendment of the Financing Order, except for modifications and amendments joined in or agreed to in
writing by Agent.

(ii) Suffer to exist at any time a priority for any administrative expense or unsecured claim
against any Borrower (now existing or hereafter arising of any kind or nature whatsoever,
including, without limitation, any administrative expenses of the kind specified in Sections 503(b)
and 507(b) of the Bankruptcy Code) equal or superior to the priority of the Lender Group in respect
of the Obligations, except for the Retained Professionals Carveout and UST Fees having a priority
over the Obligations to the extent set forth in the definition of Agreed Administrative Expense
Priorities.

(iii) Suffer to exist at any time any Lien on any properties, assets or rights (including,
without limitation, Accounts, Inventory and all other Collateral) except for Permitted Liens.

(iv) Prior to the date on which the Obligations have been paid in full in cash, all Letters of
Credit have been cash collateralized or returned for cancellation pursuant to this Agreement, and
this Agreement has been terminated, pay any administrative expenses, except administrative expenses
incurred in the ordinary course of the business of Borrowers, in each case subject to the extent
and having the order of priority set forth in the definition of Agreed Administrative Expense
Priorities.

(v) Notwithstanding the foregoing, the Borrowers shall be permitted to pay as the same may
become due and payable (i) administrative expenses of the kind specified in Section 503(b) of the
Bankruptcy Code incurred in the ordinary course of business and to the extent otherwise authorized
under the Financing Order and this Agreement and (ii) compensation and reimbursement of expenses to
professionals allowed and payable under Sections 330 and 331 of the Bankruptcy Code to the extent
permitted by the Financing Order.

	7.	 	EVENTS OF DEFAULT.

Any one or more of the following events shall constitute an event of default (each, an
"Event of Default”) under this Agreement:

7.1. If Borrowers fail to pay when due and payable, or when declared due and payable, (a) all
or any portion of the Obligations consisting of interest, fees, or charges due the Lender Group,
reimbursement of Lender Group Expenses, or other amounts (other than any portion thereof
constituting principal) constituting Obligations (including any portion thereof that accrues after
the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole
or in part as a claim in any such Insolvency Proceeding), and such failure continues for a period
of 3 Business Days, or (b) all or any portion of the principal of the Obligations;

7.2. If Borrowers or any Subsidiary of any Borrower

(a) fails to perform or observe any covenant or other agreement contained in any of
Sections 2.7, 5.5, 5.8, 5.12, 5.14, 5.16,
5.17, 5.18, and any provision of Section 6 of this Agreement;

(b) fails to perform or observe any covenant or other agreement contained in any of
Sections 5.2, 5.3, and 5.4 of this Agreement and such failure continues for
a period of 5 days after the earlier of (i) the date on which such failure shall first become known
to any Responsible Officer of any Borrower and (ii) written notice thereof is given to
Administrative Borrower by Agent;

(c) fails to perform or observe any covenant or other agreement contained in any of
Sections 5.6, 5.7, 5.9, 5.10, 5.11 and 5.15 of this
Agreement and such failure continues for a period of 10 days after the earlier of (i) the date on
which such failure shall first become known to any Responsible Officer of any Borrower and
(ii) written notice thereof is given to Administrative Borrower by Agent;

(d) fails to perform or observe any covenant or other agreement contained in this Agreement,
or in any of the other Loan Documents, in each case, other than any such covenant or agreement that
is the subject of another provision of this Section 7 (in which event such other provision
of this Section 7 shall govern), and such failure continues for a period of 20 days after
the earlier of (i) the date on which such failure shall first become known to any Responsible
Officer of any Borrower and (ii) written notice thereof is given to Administrative Borrower by
Agent;

7.3. If any material portion of any Borrower’s or any of its Subsidiaries’ assets is attached,
seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of
any third Person and the same is not discharged before the earlier of 30 days after the date it
first arises or 5 days prior to the date on which such property or asset is subject to forfeiture
by such Borrower or the applicable Subsidiary;

7.4. If any Borrower or any Subsidiary of a Borrower is enjoined, restrained, or in any way
prevented by court order from continuing to conduct all or any material part (a part involving more
than 10% of its revenue-producing activities) of its business affairs;

7.5. If, after the Filing Date, one or more judgments, orders, or awards involving an
aggregate amount of $100,000, or more (except to the extent fully covered by insurance pursuant to
which the insurer has accepted liability therefor in writing) shall be entered or filed against any
Borrower or any Subsidiary of any Borrower or with respect to any of their respective assets, and
the same is not released, discharged, bonded against, or stayed pending appeal before the earlier
of 30 days after the date it first arises or 5 days prior to the date on which such asset is
subject to being forfeited by the applicable Borrower or the applicable Subsidiary;

7.6. If, after the Filing Date, a default occurs with respect to one or more agreements to
which any Borrower or any Subsidiary of a Borrower is a party with one or more third Persons
relative to Indebtedness of any Borrower or any Subsidiary of any Borrower involving an aggregate
amount of $100,000 or more, and such default (i) occurs at the final maturity of the obligations
thereunder, or (ii) results in a right by such third Person(s), irrespective of whether exercised,
to accelerate the maturity of the applicable Borrower’s or Subsidiary’s obligations thereunder,
other than: any default arising (x) prior to Borrowers’ filing of the Bankruptcy Case; (y) due to
Borrowers’ filing of the Bankruptcy Case; or (z) due to restrictions on payment arising thereby;

7.7. If any warranty, representation, statement, or Record made herein or in any other Loan
Document or delivered to Agent or any Lender in connection with this Agreement or any other Loan
Document proves to be untrue in any material respect (except that such materiality qualifier shall
not be applicable to any representations and warranties that already are qualified or modified by
materiality in the text thereof) as of the date of issuance or making or deemed making thereof;

7.8. If the obligation of any Guarantor under any Guaranty is materially limited or terminated
by operation of law or by such Guarantor, or any such Guarantor becomes the subject of an
Insolvency Proceeding;

7.9. If the Security Agreement or any other Loan Document that purports to create a Lien,
shall, for any reason, fail or cease to create a valid and, except to the extent permitted by the
terms hereof or thereof, perfected and first priority Lien on or security interest in the
Collateral covered hereby or thereby, except as a result of a disposition of the applicable
Collateral in a transaction permitted under this Agreement;

7.10. Any material provision of any Loan Document shall at any time for any reason be declared
to be null and void, or the validity or enforceability thereof shall be contested by any Borrower
or any Subsidiary of a Borrower, or a proceeding shall be commenced by any Borrower or any
Subsidiary of a Borrower, or by any Governmental Authority having jurisdiction over any Borrower or
any Subsidiary of a Borrower, seeking to establish the invalidity or unenforceability thereof, or
any Borrower or any Subsidiary of a Borrower shall deny that it has any liability or obligation
purported to be created under any Loan Document;

7.11. If Borrower or any Subsidiary makes any payment on account of any Indebtedness existing
as of the Filing Date or described in Section 6.1(b), except for any payments expressly
authorized by the Financing Order or this Agreement;

7.12. If the Financing Order is stayed, revised, revoked, remanded, rescinded, amended,
reversed, vacated, or modified in any manner not acceptable to the Agent;

7.13. If an order with respect to the Bankruptcy Case shall be entered by the Bankruptcy Court
appointing (i) a trustee under Section 1104, or (ii) an examiner with enlarged powers (powers
beyond those set forth in Section 1106(a)(3) and (4) of the Bankruptcy Code) under Section 1106(b)
of the Bankruptcy Code;

7.14. If any Person other than Borrowers shall assert any claim in the Bankruptcy Case arising
under Section 506(c) of the Bankruptcy Code against Agent, any Lender or the Collateral, and either
(a) the same shall remain unopposed by the Borrowers for more than 5 Business Days, or (b) in any
event, any such claim shall not be dismissed or withdrawn, with prejudice, within 60 days after the
assertion thereof;

7.15. If (a) any Person other than the Borrowers shall commence any action in any Bankruptcy
Case which challenges or objects to the existence, extent, validity or priority of any portion of
the Obligations, the Liens therefor or any rights and remedies of the Lender Group under the Loan
Documents, the Financing Order or any other order of the Bankruptcy Court and (b) either (i) the
same shall remain unopposed by the Borrowers for more than 5 Business Days, or (ii) in any event,
any such claim shall not be dismissed or withdrawn, with prejudice, within 60 days after the
assertion thereof;

7.16. If (a) any Borrowers or any of their Subsidiaries shall attempt to invalidate, reduce or
otherwise impair the Liens or security interests of Agent and the Lenders, claims or rights against
any Borrower or any of their Subsidiaries or to subject any Collateral to assessment pursuant to
Section 506(c) of the Bankruptcy Code, (b) any Lien or security interest created by this Agreement
or the Financing Order shall, for any reason, ceases to be valid or (c) any action is commenced by
any Borrower or any of their Subsidiaries which contests the validity, perfection or enforceability
of any of the Liens and security interests of Agent and the Lenders created by this Agreement or
the Financing Order;

7.17. If an order with respect to the Bankruptcy Case shall be entered by the Bankruptcy Court
converting the Bankruptcy Case (or any case comprising part of the Bankruptcy Case) to a case under
chapter 7 of the Bankruptcy Code;

7.18. If an order shall be entered by the Bankruptcy Court confirming a reorganization plan in
the Bankruptcy Case which does not (a) contain a provision for termination of this Agreement, the
cash collateralization in accordance with the provisions of Section 3.4 or return for
cancellation of all Letters of Credit and the indefeasible payment in full in cash of all
Obligations in a manner satisfactory to the Agent on or before the effective date, or substantial
consummation, of such plan and (b) provide for the continuation of the Liens and security interests
granted to Agent and priorities until such plan effective date;

7.19. If an order shall be entered by the Bankruptcy Court dismissing the Bankruptcy Case
which does not contain a provision for termination of this Agreement, the cash collateralization in
accordance with the provisions of Section 3.4 or return for cancellation of all Letters of
Credit and the indefeasible and final payment in full in cash of all Obligations in a manner
satisfactory to Agent upon such dismissal;

7.20. If an order with respect to the Bankruptcy Case shall be entered without the express
prior written consent of Agent, (i) to revoke, vacate, reverse, stay, modify, supplement or amend
this Agreement and the transactions contemplated hereby, any Loan Document or the Financing Order,
or (ii) to permit any administrative expense or any claim (now existing or hereafter arising, of
any kind or nature whatsoever) to have administrative priority as to Borrowers equal or superior to
the priority of the Lender Group in respect of the Obligations, except for the Retained
Professionals Carveout and UST Fees having a priority over the Obligations to the extent set forth
in the definition of Agreed Administrative Expense Priorities;

7.21. If an order shall be entered by the Bankruptcy Court granting relief from the automatic
stay to any creditor(s) of any Borrower or any Subsidiary of any Borrower with respect to any claim
in an amount equal to or exceeding $50,000 in the aggregate; provided, however, that it shall not
be an Event of Default if relief from the automatic stay is granted (i) solely for the purpose of
allowing such creditor to determine the liquidated amount of its claim against any such Person or
(ii) to permit the commencement of or prosecution of a proceeding to collect solely against an
insurance company;

7.22. If an order shall be entered in any Bankruptcy Case that (a) permits any Borrower or any
Subsidiary of any Borrower to incur Indebtedness secured by any claim under Bankruptcy Code Section
364(c)(1) or by a Lien pari passu with or superior to the Lien granted to the Agent under the Loan
Documents and Bankruptcy Code Sections 364(c)(2) or (d), unless (i) all of the Obligations have
been indefeasibly and finally paid in cash at the time of the entry of any such order, or (ii) such
debt is used immediately to indefeasibly and finally pay all of the Obligations in cash, or
(b) permits any Borrower or any Subsidiary of any Borrower the right to use Collateral other than
in accordance with the terms of the Financing Order, unless all of the Obligations shall have been
indefeasibly and finally in paid in cash;

7.23. If an application for any of the orders described in Sections 7.14 and
7.16 or 7.21 herein shall be made by Borrower or any Subsidiary of any Borrower or
any other Person and such application (if made by any Person other than a Borrower or any
Subsidiary of a Borrower) is not contested by the Borrowers in good faith or the relief requested
is granted in an order that is not stayed pending appeal;

7.24. If the Board of Directors of any Borrower or any Subsidiary of any Borrower authorizes
the liquidation of all or substantially all of any such Person’s assets pursuant to sales to be
conducted under Section 363 of the Bankruptcy Code or otherwise, other than as consented to by
Agent or as allowed to pursuant to Section 6.4 herein;

7.25. If the Bankruptcy Court shall approve the termination of a Material License under
Section 365 of the Bankruptcy Code or if any licensee shall suspend or fail to renew any Material
License;

7.26. Any Dormant Subsidiary existing as of the Closing Date conducts any business or owns any
assets, other than assets having an aggregate value not to exceed the applicable amount set forth
in the definition of the term “Dormant Subsidiary”.

	8.	 	THE LENDER GROUP’S RIGHTS AND REMEDIES.

8.1. Rights and Remedies. Notwithstanding the provisions of Section 362 of the
Bankruptcy Code, upon the occurrence, and during the continuation, of an Event of Default, the
Required Lenders (at their election but without notice of their election and without demand) may
authorize and instruct Agent to do any one or more of the following on behalf of the Lender Group
(and Agent, acting upon the instructions of the Required Lenders, shall do the same on behalf of
the Lender Group), all of which are authorized by Borrowers:

(a) Declare all or any portion of the Obligations, whether evidenced by this Agreement, by any
of the other Loan Documents, or otherwise, immediately due and payable;

(b) Cease advancing money or extending credit to or for the benefit of Borrowers under this
Agreement, under any of the Loan Documents, or under any other agreement between Borrowers and the
Lender Group;

(c) Subject to the applicable terms, if any, of the Financing Order, terminate this Agreement
and any of the other Loan Documents as to any future liability or obligation of the Lender Group,
but without affecting any of the Agent’s Liens in the Collateral and without affecting the
Obligations; and

(d) Subject to the applicable terms, if any, of the Financing Order, the Lender Group shall
have all other rights and remedies available at law or in equity or pursuant to any other Loan
Document.

8.2. Remedies Cumulative. The rights and remedies of the Lender Group under this
Agreement, the other Loan Documents, and all other agreements shall be cumulative. The Lender
Group shall have all other rights and remedies not inconsistent herewith as provided under the
Code, by law, or in equity. No exercise by the Lender Group of one right or remedy shall be deemed
an election, and no waiver by the Lender Group of any Event of Default shall be deemed a continuing
waiver. No delay by the Lender Group shall constitute a waiver, election, or acquiescence by it.

	9.	 	TAXES AND EXPENSES.

If, with respect to any period after the Filing Date, any Borrower fails to pay any monies
(whether taxes, assessments, insurance premiums, or, in the case of leased properties or assets,
rents or other amounts payable under such leases) due to third Persons, or fails to make any
deposits or furnish any required proof of payment or deposit, all as required under the terms of
this Agreement, then, Agent, in its sole discretion and without prior notice to any Borrower, may
do any or all of the following: (a) make payment of the same or any part thereof, (b) set up such
reserves against the Maximum Revolver Amount as Agent deems necessary to protect the Lender Group
from the exposure created by such failure, or (c) in the case of the failure to comply with
Section 5.8 hereof, obtain and maintain insurance policies of the type described in
Section 5.8 and take any action with respect to such policies as Agent deems prudent. Any
such amounts paid by Agent shall constitute Lender Group Expenses and any such payments shall not
constitute an agreement by the Lender Group to make similar payments in the future or a waiver by
the Lender Group of any Event of Default under this Agreement. Agent need not inquire as to, or
contest the validity of, any such expense, tax, or Lien and the receipt of the usual official
notice for the payment thereof shall be conclusive evidence that the same was validly due and
owing.

	10.	 	WAIVERS; INDEMNIFICATION.

10.1. Demand; Protest; etc. Each Borrower waives demand, protest, notice of protest,
notice of default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release,
compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and
guarantees at any time held by the Lender Group on which any such Borrower may in any way be
liable.

10.2. The Lender Group’s Liability for Borrower Collateral. Each Borrower hereby
agrees that: (a) so long as Agent complies with its obligations, if any, under the Code, the
Lender Group shall not in any way or manner be liable or responsible for: (i) the safekeeping of
the Collateral, (ii) any loss or damage thereto occurring or arising in any manner or fashion from
any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier,
warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or
destruction of the Collateral shall be borne by Borrowers.

10.3. Indemnification. Each Borrower shall pay, indemnify, defend, and hold the
Agent-Related Persons, the Lender-Related Persons, and each Voting Participant (each, an
"Indemnified Person”) harmless (to the fullest extent permitted by law) from and against
any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines,
costs, penalties, and damages, and all reasonable fees and disbursements of attorneys, experts, or
consultants and all other costs and expenses actually incurred in connection therewith or in
connection with the enforcement of this indemnification (as and when they are incurred and
irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred
by any of them (a) in connection with or as a result of or related to the execution, delivery,
enforcement, performance, or administration (including any restructuring or workout with respect
hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby
or thereby or the monitoring of Borrowers’ and their Subsidiaries’ compliance with the terms of the
Loan Documents, (b) with respect to any investigation, litigation, or proceeding related to this
Agreement, any other Loan Document, or the use of the proceeds of the credit provided hereunder
(irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event,
or circumstance in any manner related thereto, and (c) in connection with or arising out of any
presence or release of Hazardous Materials at, on, under, to or from any assets or properties
owned, leased or operated by Parent or any of its Subsidiaries or any Environmental Actions,
Environmental Liabilities and Costs or Remedial Actions related in any way to any such assets or
properties of Parent or any of its Subsidiaries (each and all of the foregoing, the
"Indemnified Liabilities”). Any provision of any Loan Document to the contrary
notwithstanding, Borrowers shall have no obligation to any Indemnified Person under this
Section 10.3 with respect to any Indemnified Liability that a court of competent
jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of
such Indemnified Person. This provision shall survive the termination of this Agreement and the
repayment of the Obligations. If any Indemnified Person makes any payment to any other Indemnified
Person with respect to an Indemnified Liability as to which Borrowers were required to indemnify
the Indemnified Person receiving such payment, the Indemnified Person making such payment is
entitled to be indemnified and reimbursed by Borrowers with respect thereto. WITHOUT LIMITATION,
THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED
LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT (BUT NOT GROSSLY
NEGLIGENT) ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON.

	11.	 	NOTICES.

Unless otherwise provided in this Agreement, all notices or demands by Borrowers or Agent to
the other relating to this Agreement or any other Loan Document shall be in writing and (except for
financial statements and other informational documents which may be sent by first-class mail,
postage prepaid) shall be personally delivered or sent by registered or certified mail (postage
prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as
Administrative Borrower or Agent, as applicable, may designate to each other in accordance
herewith), or telefacsimile to Borrowers in care of Administrative Borrower or to Agent, as the
case may be, at its address set forth below:

	 	 	 	 	 
	 
	 	ENESCO GROUP, INC.

	 
	 	225 Windsor Drive
	 
	 	Itasca, Illinois  60143

	If to Administrative
	 	Attn:  Treasurer

	Borrower:
	 	Fax No.:  (630) 875-5692

	with copies to:
	 	VEDDER, PRICE, KAUFMAN & KAMMHOLZ,

	 
	 	P	.C.	 
	 
	 	222 North LaSalle Street
	 
	 	Chicago, Illinois  60601

	 
	 	Attn:  John T. McEnroe

	 
	 	Fax No.:  (312) 609-5005

	If to Agent:
	 	WELLS FARGO FOOTHILL, INC.

	 
	 	One Boston Place

	 
	 	Suite 1800

	 
	 	Boston, Massachusetts  02108

	 
	 	Attn:  Enesco-Account Manager

	 
	 	Fax No.:  (617) 722-9485

	with copies to:
	 	GOLDBERG, KOHN, BELL, BLACK,

	 
	 	ROSENBLOOM AND MORITZ, LTD.

	 
	 	55 East Monroe Street
	 
	 	Chicago, Illinois  60603

	 
	 	Attn:  Randall L. Klein

	 
	 	Fax No.:  (312) 332-2196

Agent and Borrowers may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other party. All notices or demands sent in
accordance with this Section 11, other than notices by Agent in connection with enforcement
rights against the Collateral under the provisions of the Code, shall be deemed received on the
earlier of the date of actual receipt or 3 Business Days after the deposit thereof in the mail.
Each Borrower acknowledges and agrees that notices sent by the Lender Group in connection with the
exercise of enforcement rights against Collateral under the provisions of the Code 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.

	12.	 	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

(a) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO
THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION,
INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND
THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO
SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ILLINOIS AND, TO THE EXTENT APPLICABLE, THE BANKRUPTCY CODE

(b) IF THE BANKRUPTCY COURT ABSTAINS FROM HEARING OR REFUSES TO EXERCISE JURISDICTION OVER ANY
OF THE FOLLOWING, THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND TO THE
EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF COOK, STATE OF
ILLINOIS; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION
WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
BORROWERS AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW,
ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR
TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION
12(b).

(c) BORROWERS AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS
OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF
DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWERS AND EACH MEMBER OF THE LENDER
GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

	13.	 	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.

13.1. Assignments and Participations.

(a) Any Lender may assign and delegate to one or more assignees (each an “Assignee”)
that are Eligible Transferees all or any portion, of the Obligations, the Revolver Commitments and
the other rights and obligations of such Lender hereunder and under the other Loan Documents, in a
minimum amount (unless waived by the Agent) of $7,500,000 (except such minimum amount shall not
apply to (x) an assignment or delegation by any Lender to any other Lender or an Affiliate of any
Lender or (y) a group of new Lenders, each of whom is an Affiliate of each other or a fund or
account managed by any such new Lender or an Affiliate of such new Lender to the extent that the
aggregate amount to be assigned to all such new Lenders is at least $7,500,000); provided,
however, that Borrowers and Agent may continue to deal solely and directly with such Lender
in connection with the interest so assigned to an Assignee until (i) written notice of such
assignment, together with payment instructions, addresses, and related information with respect to
the Assignee, have been given to Administrative Borrower and Agent by such Lender and the Assignee,
(ii) except in the case of an assignment to EGI Acquisition, LLC or any Affiliate thereof (other
than individuals), such Lender and its Assignee have delivered to Administrative Borrower and Agent
an Assignment and Acceptance and Agent has notified the assigning Lender of its receipt thereof in
accordance with Section 13.1(b), and (iii) unless waived by the Agent, the assigning Lender
or Assignee has paid to Agent for Agent’s separate account a processing fee in the amount of
$3,500. Anything contained herein to the contrary notwithstanding, the payment of any fees shall
not be required and the Assignee need not be an Eligible Transferee if such assignment is in
connection with any merger, consolidation, sale, transfer, or other disposition of all or any
substantial portion of the business or loan portfolio of the assigning Lender.

(b) From and after the date that Agent notifies the assigning Lender (with a copy to
Administrative Borrower) that it has received an executed Assignment and Acceptance (or in the case
of an assignment to EGI Acquisition, LLC or any Affiliate thereof (other than individuals) written
notice of such assignment) and, if applicable, payment of the required processing fee, (i) the
Assignee thereunder shall be a party hereto and, to the extent that rights and obligations
hereunder have been assigned to it pursuant to such Assignment and Acceptance (or otherwise), shall
have the rights and obligations of a Lender under this Agreement and the other Loan Documents, and
(ii) the assigning Lender shall, to the extent that rights and obligations hereunder and under the
other Loan Documents have been assigned by it pursuant to such Assignment and Acceptance (or
otherwise), relinquish its rights (except with respect to Section 10.3 hereof) and be
released from any future obligations under this Agreement (and in the case of an Assignment and
Acceptance or other document covering all or the remaining portion of an assigning Lender’s rights
and obligations under this Agreement and the other Loan Documents, such Lender shall cease to be a
party hereto and thereto), and such assignment shall effect a novation among Borrowers, the
assigning Lender, and the Assignee; provided, however, that nothing contained
herein shall release any assigning Lender from obligations that survive the termination of this
Agreement, including such assigning Lender’s obligations under Section 15 and Section
16.7(a) of this Agreement.

(c) By executing and delivering an Assignment and Acceptance (or a comparable document in the
case of EGI Acquisition, LLC or any Affiliate thereof (other than individuals)), the assigning
Lender thereunder and the Assignee thereunder confirm to and agree with each other and the other
parties hereto as follows: (i) other than as provided in such Assignment and Acceptance or other
document, such assigning Lender makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value
of this Agreement or any other Loan Document furnished pursuant hereto, (ii) such assigning Lender
makes no representation or warranty and assumes no responsibility with respect to the financial
condition of Borrowers or the performance or observance by Borrowers of any of their obligations
under this Agreement or any other Loan Document furnished pursuant hereto, (iii) such Assignee
confirms that it has received a copy of this Agreement, together with such other documents and
information as it has deemed appropriate to make its own credit analysis and decision to enter into
such Assignment and Acceptance or other document, (iv) such Assignee will, independently and
without reliance upon Agent, such assigning Lender or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under this Agreement, (v) such Assignee appoints and authorizes
Agent to take such actions and to exercise such powers under this Agreement as are delegated to
Agent, by the terms hereof, together with such powers as are reasonably incidental thereto, and
(vi) such Assignee agrees that it will perform all of the obligations which by the terms of this
Agreement are required to be performed by it as a Lender.

(d) Immediately upon Agent’s receipt of the required processing fee, if applicable, and
delivery of notice to the assigning Lender pursuant to Section 13.1(b), this Agreement
shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the
addition of the Assignee and the resulting adjustment of the Revolver Commitments arising
therefrom. The Revolver Commitment allocated to each Assignee shall reduce such Revolver
Commitments of the assigning Lender pro tanto.

(e) Any Lender may at any time sell to one or more commercial banks, financial institutions,
or other Persons (a “Participant”) participating interests in all or any portion of its
Obligations, its Revolver Commitment, and the other rights and interests of that Lender (the
"Originating Lender”) hereunder and under the other Loan Documents; provided,
however, that (i) the Originating Lender shall remain a “Lender” for all purposes of this
Agreement and the other Loan Documents and the Participant receiving the participating interest in
the Obligations, the Revolver Commitments, and the other rights and interests of the Originating
Lender hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and
the Originating Lender’s obligations under this Agreement shall remain unchanged, (ii) the
Originating Lender shall remain solely responsible for the performance of such obligations,
(iii) Borrowers, Agent, and the Lenders shall continue to deal solely and directly with the
Originating Lender in connection with the Originating Lender’s rights and obligations under this
Agreement and the other Loan Documents, and (iv) all amounts payable by Borrowers hereunder shall
be determined as if such Lender had not sold such participation, except that, if amounts
outstanding under this Agreement are due and unpaid, or shall have been declared or shall have
become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed
to have the right of set off in respect of its participating interest in amounts owing under this
Agreement to the same extent as if the amount of its participating interest were owing directly to
it as a Lender under this Agreement. No Participant shall have the right to participate directly
in the making of decisions by the Lenders among themselves or shall have any voting rights other
than any Voting Participant.

(f) In connection with any such assignment or participation or proposed assignment or
participation, a Lender may, subject to the provisions of Section 16.7, disclose all
documents and information which it now or hereafter may have relating to Borrowers and their
Subsidiaries and their respective businesses.

(g) Any other provision in this Agreement notwithstanding, any Lender may at any time create a
security interest in, or pledge, all or any portion of its rights under and interest in this
Agreement in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal
Reserve Bank or U.S. Treasury Regulation 31 CFR § 203.24, and such Federal Reserve Bank may enforce
such pledge or security interest in any manner permitted under applicable law.

13.2. Successors. This Agreement shall bind and inure to the benefit of the
respective successors and assigns of each of the parties; provided, however, that
Borrowers may not assign this Agreement or any rights or duties hereunder without the Lenders’
prior written consent and any prohibited assignment shall be absolutely void ab initio. No consent
to assignment by the Lenders shall release any Borrower from its Obligations. A Lender may not
assign this Agreement and the other Loan Documents and its rights and duties hereunder and
thereunder except pursuant to Section 13.1 hereof and, except as expressly required
pursuant to Section 13.1 hereof, no consent or approval by any Borrower is required in
connection with any such assignment.

	14.	 	AMENDMENTS; WAIVERS.

14.1. Amendments and Waivers. No amendment or waiver of any provision of this
Agreement or any other Loan Document (other than Bank Product Agreements or the Fee Letter), and no
consent with respect to any departure by Borrowers therefrom, shall be effective unless the same
shall be in writing and signed by the Required Lenders (or by Agent at the written request of the
Required Lenders) and Administrative Borrower (on behalf of all Borrowers) and then any such waiver
or consent shall be effective, but only in the specific instance and for the specific purpose for
which given; provided, however, that no such waiver, amendment, or consent shall,
unless in writing and signed by all of the Lenders directly affected thereby and Administrative
Borrower (on behalf of all Borrowers), do any of the following:

(a) increase or extend any Revolver Commitment of any Lender,

(b) postpone or delay any date fixed by this Agreement or any other Loan Document for any
payment of principal, interest, fees, or other amounts due hereunder or under any other Loan
Document,

(c) reduce the principal of, or the rate of interest on, any loan or other extension of credit
hereunder, or reduce any fees or other amounts payable hereunder or under any other Loan Document,

(d) change the Pro Rata Share that is required to take any action hereunder,

(e) amend or modify this Section or any provision of this Agreement providing for consent or
other action by all Lenders,

(f) other than as permitted by Section 15.12, release Agent’s Lien in and to any of
the Collateral,

(g) change the definition of “Required Lenders” or “Pro Rata Share”,

(h) contractually subordinate any of the Agent’s Liens,

(i) other than in connection with a merger, liquidation, dissolution or sale of such Person
expressly permitted by the terms hereof or the other Loan Documents, release any Borrower or any
Guarantor from any obligation for the payment of money,

(j) amend any of the provisions of Section 2.4(b)(i) or (ii),

(k) change the definition of Maximum Revolver Amount or change Section 2.1(b), or

(l) amend any of the provisions of Section 15.

and, provided further, however, that no amendment, waiver or consent shall,
unless in writing and signed by Agent or Issuing Lender, as applicable, affect the rights or duties
of Agent or Issuing Lender, as applicable, under this Agreement or any other Loan Document. The
foregoing notwithstanding, any amendment, modification, waiver, consent, termination, or release
of, or with respect to, any provision of this Agreement or any other Loan Document that relates
only to the relationship of the Lender Group among themselves (and shall not include voting
rights), and that does not affect the rights or obligations of Borrowers, shall not require consent
by or the agreement of Borrowers.

14.2. Replacement of Holdout Lender.

(a) If any action to be taken by the Lender Group or Agent hereunder requires the unanimous
consent, authorization, or agreement of all Lenders, and a Lender (“Holdout Lender”) fails
to give its consent, authorization, or agreement, then Agent, upon at least 5 Business Days prior
irrevocable notice to the Holdout Lender, may permanently replace the Holdout Lender with one or
more substitute Lenders (each, a “Replacement Lender”), and the Holdout Lender shall have
no right to refuse to be replaced hereunder. Such notice to replace the Holdout Lender shall
specify an effective date for such replacement, which date shall not be later than 15 Business Days
after the date such notice is given.

(b) Prior to the effective date of such replacement, the Holdout Lender and each Replacement
Lender shall execute and deliver an Assignment and Acceptance, subject only to the Holdout Lender
being repaid its share of the outstanding Obligations (including an assumption of its Pro Rata
Share of the Risk Participation Liability) without any premium or penalty of any kind whatsoever.
If the Holdout Lender shall refuse or fail to execute and deliver any such Assignment and
Acceptance prior to the effective date of such replacement, the Holdout Lender shall be deemed to
have executed and delivered such Assignment and Acceptance. The replacement of any Holdout Lender
shall be made in accordance with the terms of Section 13.1. Until such time as the
Replacement Lenders shall have acquired all of the Obligations, the Revolver Commitments, and the
other rights and obligations of the Holdout Lender hereunder and under the other Loan Documents,
the Holdout Lender shall remain obligated to make the Holdout Lender’s Pro Rata Share of Advances
and to purchase a participation in each Letter of Credit, in an amount equal to its Pro Rata Share
of the Risk Participation Liability of such Letter of Credit.

14.3. No Waivers; Cumulative Remedies. No failure by Agent or any Lender to exercise
any right, remedy, or option under this Agreement or any other Loan Document, or delay by Agent or
any Lender in exercising the same, will operate as a waiver thereof. No waiver by Agent or any
Lender will be effective unless it is in writing, and then only to the extent specifically stated.
No waiver by Agent or any Lender on any occasion shall affect or diminish Agent’s and each Lender’s
rights thereafter to require strict performance by Borrowers of any provision of this Agreement.
Agent’s and each Lender’s rights under this Agreement and the other Loan Documents will be
cumulative and not exclusive of any other right or remedy that Agent or any Lender may have.

	15.	 	AGENT; THE LENDER GROUP.

15.1. Appointment and Authorization of Agent. Each Lender hereby designates and
appoints WFF as its representative under this Agreement and the other Loan Documents and each
Lender hereby irrevocably authorizes Agent to execute and deliver each of the other Loan Documents
on its behalf and to take such other action on its behalf under the provisions of this Agreement
and each other Loan Document and to exercise such powers and perform such duties as are expressly
delegated to Agent by the terms of this Agreement or any other Loan Document, together with such
powers as are reasonably incidental thereto. Agent agrees to act as such on the express conditions
contained in this Section 15. The provisions of this Section 15 (other than
Section 15.11) are solely for the benefit of Agent, and the Lenders, and Borrowers and
their Subsidiaries shall have no rights as a third party beneficiary of any of the provisions
contained herein. Any provision to the contrary contained elsewhere in this Agreement or in any
other Loan Document notwithstanding, Agent shall not have any duties or responsibilities, except
those expressly set forth herein, nor shall Agent have or be deemed to have any fiduciary
relationship with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against Agent; it being expressly understood and agreed that the use of the word
“Agent” is for convenience only, that WFF is merely the representative of the Lenders, and only has
the contractual duties set forth herein. Except as expressly otherwise provided in this Agreement,
Agent shall have and may use its sole discretion with respect to exercising or refraining from
exercising any discretionary rights or taking or refraining from taking any actions that Agent
expressly is entitled to take or assert under or pursuant to this Agreement and the other Loan
Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan
Documents that provides rights or powers to Agent, Lenders agree that Agent shall have the right to
exercise the following powers as long as this Agreement remains in effect: (a) maintain, in
accordance with its customary business practices, ledgers and records reflecting the status of the
Obligations, the Collateral, the Collections of Borrowers and their Subsidiaries, and related
matters, (b) execute or file any and all financing or similar statements or notices, amendments,
renewals, supplements, documents, instruments, proofs of claim, notices and other written
agreements with respect to the Loan Documents, (c) make Advances, for itself or on behalf of
Lenders as provided in the Loan Documents, (d) exclusively receive, apply, and distribute the
Collections of Borrowers and their Subsidiaries as provided in the Loan Documents, (e) open and
maintain such bank accounts and cash management arrangements as Agent deems necessary and
appropriate in accordance with the Loan Documents for the foregoing purposes with respect to the
Collateral and the Collections of Borrowers and their Subsidiaries, (f) perform, exercise, and
enforce any and all other rights and remedies of the Lender Group with respect to Borrowers, the
Obligations, the Collateral, the Collections of Borrowers and their Subsidiaries, or otherwise
related to any of same as provided in the Loan Documents, and (g) incur and pay such Lender Group
Expenses as Agent may deem necessary or appropriate for the performance and fulfillment of its
functions and powers pursuant to the Loan Documents.

15.2. Delegation of Duties. Agent may execute any of its duties under this Agreement
or any other Loan Document by or through agents, employees or attorneys in fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties. Agent shall not be
responsible for the negligence or misconduct of any agent or attorney in fact that it selects as
long as such selection was made without gross negligence or willful misconduct.

15.3. Liability of Agent. None of the Agent Related Persons shall (a) be liable for
any action taken or omitted to be taken by any of them under or in connection with this Agreement
or any other Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct), or (b) be responsible in any manner to any of the Lenders for
any recital, statement, representation or warranty made by any Borrower or any Subsidiary or
Affiliate of any Borrower, or any officer or director thereof, contained in this Agreement or in
any other Loan Document, or in any certificate, report, statement or other document referred to or
provided for in, or received by Agent under or in connection with, this Agreement or any other Loan
Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document, or for any failure of any Borrower or any other party to any
Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be
under any obligation to any Lender to ascertain or to inquire as to the observance or performance
of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document,
or to inspect the books and records or properties of Borrowers or the books or records or
properties of any of Borrowers’ Subsidiaries or Affiliates.

15.4. Reliance by Agent. Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit,
letter, telegram, telefacsimile or other electronic method of transmission, telex or telephone
message, statement or other document or conversation believed by it to be genuine and correct and
to have been signed, sent, or made by the proper Person or Persons, and upon advice and statements
of legal counsel (including counsel to Borrowers or counsel to any Lender), independent accountants
and other experts selected by Agent. Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless Agent shall first receive such
advice or concurrence of the Lenders as it deems appropriate and until such instructions are
received, Agent shall act, or refrain from acting, as it deems advisable. If Agent so requests, it
shall first be indemnified to its reasonable satisfaction by the Lenders against any and all
liability and expense that may be incurred by it by reason of taking or continuing to take any such
action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request or consent of the requisite
Lenders and such request and any action taken or failure to act pursuant thereto shall be binding
upon all of the Lenders.

15.5. Notice of Default or Event of Default. Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default, except with respect to
defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent for
the account of the Lenders and, except with respect to Events of Default of which Agent has actual
knowledge, unless Agent shall have received written notice from a Lender or Administrative Borrower
referring to this Agreement, describing such Default or Event of Default, and stating that such
notice is a “notice of default.” Agent promptly will notify the Lenders of its receipt of any such
notice or of any Event of Default of which Agent has actual knowledge. If any Lender obtains
actual knowledge of any Event of Default, such Lender promptly shall notify the other Lenders and
Agent of such Event of Default. Each Lender shall be solely responsible for giving any notices to
its Participants, if any. Subject to Section 15.4, Agent shall take such action with
respect to such Default or Event of Default as may be requested by the Required Lenders in
accordance with Section 8; provided, however, that unless and until Agent
has received any such request, Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of Default as it shall deem
advisable.

15.6. Credit Decision. Each Lender acknowledges that none of the Agent Related
Persons has made any representation or warranty to it, and that no act by Agent hereinafter taken,
including any review of the affairs of Borrowers and their Subsidiaries or Affiliates, shall be
deemed to constitute any representation or warranty by any Agent-Related Person to any Lender.
Each Lender represents to Agent that it has, independently and without reliance upon any
Agent-Related Person and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, prospects, operations, property,
financial and other condition and creditworthiness of Borrowers and any other Person party to a
Loan Document, and all applicable bank regulatory laws relating to the transactions contemplated
hereby, and made its own decision to enter into this Agreement and to extend credit to Borrowers.
Each Lender also represents that it will, independently and without reliance upon any Agent-Related
Person and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such investigations as it deems
necessary to inform itself as to the business, prospects, operations, property, financial and other
condition and creditworthiness of Borrowers and any other Person party to a Loan Document. Except
for notices, reports, and other documents expressly herein required to be furnished to the Lenders
by Agent, Agent shall not have any duty or responsibility to provide any Lender with any credit or
other information concerning the business, prospects, operations, property, financial and other
condition or creditworthiness of Borrowers and any other Person party to a Loan Document that may
come into the possession of any of the Agent Related Persons.

15.7. Costs and Expenses; Indemnification. Agent may incur and pay Lender Group
Expenses to the extent Agent reasonably deems necessary or appropriate for the performance and
fulfillment of its functions, powers, and obligations pursuant to the Loan Documents, including
court costs, attorneys fees and expenses, fees and expenses of financial accountants, advisors,
consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees
and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral,
whether or not Borrowers are obligated to reimburse Agent or Lenders for such expenses pursuant to
this Agreement or otherwise. Agent is authorized and directed to deduct and retain sufficient
amounts from the Collections of Borrowers and their Subsidiaries received by Agent to reimburse
Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to
Lenders. In the event Agent is not reimbursed for such costs and expenses by Borrowers or their
Subsidiaries, each Lender hereby agrees that it is and shall be obligated to pay to Agent such
Lender’s Pro Rata Share thereof. Whether or not the transactions contemplated hereby are
consummated, the Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not
reimbursed by or on behalf of Borrowers and without limiting the obligation of Borrowers to do so),
according to their Pro Rata Shares, from and against any and all Indemnified Liabilities;
provided, however, that no Lender shall be liable for the payment to any
Agent-Related Person of any portion of such Indemnified Liabilities resulting solely from such
Person’s gross negligence or willful misconduct nor shall any Lender be liable for the obligations
of any Defaulting Lender in failing to make an Advance or other extension of credit hereunder.
Without limitation of the foregoing, each Lender shall reimburse Agent upon demand for such
Lender’s Pro Rata Share of any costs or out of pocket expenses (including attorneys, accountants,
advisors, and consultants fees and expenses) incurred by Agent in connection with the preparation,
execution, delivery, administration, modification, amendment, or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or
referred to herein, to the extent that Agent is not reimbursed for such expenses by or on behalf of
Borrowers. The undertaking in this Section shall survive the payment of all Obligations hereunder
and the resignation or replacement of Agent.

15.8. Agent in Individual Capacity. WFF and its Affiliates may make loans to, issue
letters of credit for the account of, accept deposits from, acquire equity interests in, and
generally engage in any kind of banking, trust, financial advisory, underwriting, or other business
with Borrowers and their Subsidiaries and Affiliates and any other Person party to any Loan
Documents as though WFF were not Agent hereunder, and, in each case, without notice to or consent
of the other members of the Lender Group. The other members of the Lender Group acknowledge that,
pursuant to such activities, WFF or its Affiliates may receive information regarding Borrowers or
their Affiliates and any other Person party to any Loan Documents that is subject to
confidentiality obligations in favor of Borrowers or such other Person and that prohibit the
disclosure of such information to the Lenders, and the Lenders acknowledge that, in such
circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver
Agent will use its reasonable best efforts to obtain), Agent shall not be under any obligation to
provide such information to them. The terms “Lender” and “Lenders” include WFF in its individual
capacity.

15.9. Successor Agent. Agent may resign as Agent upon 45 days notice to the Lenders
(unless such notice is waived by the Required Lenders). If Agent resigns under this Agreement, the
Required Lenders shall appoint a successor Agent for the Lenders. If no successor Agent is
appointed prior to the effective date of the resignation of Agent, Agent may appoint, after
consulting with the Lenders, a successor Agent. If Agent has materially breached or failed to
perform any material provision of this Agreement or of applicable law, the Required Lenders may
agree in writing to remove and replace Agent with a successor Agent from among the Lenders. In any
such event, upon the acceptance of its appointment as successor Agent hereunder, such successor
Agent shall succeed to all the rights, powers, and duties of the retiring Agent and the term
“Agent” shall mean such successor Agent and the retiring Agent’s appointment, powers, and duties as
Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the
provisions of this Section 15 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Agent under this Agreement. If no successor Agent has accepted
appointment as Agent by the date which is 45 days following a retiring Agent’s notice of
resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and the
Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Lenders
appoint a successor Agent as provided for above.

15.10. Lender in Individual Capacity. Any Lender and its respective Affiliates may
make loans to, issue letters of credit for the account of, accept deposits from, acquire equity
interests in and generally engage in any kind of banking, trust, financial advisory, underwriting,
or other business with Borrowers and their Subsidiaries and Affiliates and any other Person party
to any Loan Documents as though such Lender were not a Lender hereunder without notice to or
consent of the other members of the Lender Group. The other members of the Lender Group
acknowledge that, pursuant to such activities, such Lender and its respective Affiliates may
receive information regarding Borrowers or their Affiliates and any other Person party to any Loan
Documents that is subject to confidentiality obligations in favor of Borrowers or such other Person
and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge
that, in such circumstances (and in the absence of a waiver of such confidentiality obligations,
which waiver such Lender will use its reasonable best efforts to obtain), such Lender shall not be
under any obligation to provide such information to them.

15.11. Withholding Taxes.

(a) All payments made by any Borrower hereunder or under any note or other Loan Document will
be made without setoff, counterclaim, or other defense. In addition, except as otherwise provided
in this Section 15.11, all such payments will be made free and clear of, and without
deduction or withholding for, any present or future Taxes, and in the event any deduction or
withholding of Taxes is required, each Borrower shall comply with the penultimate sentence of this
Section 15.11(a). If any Taxes are so levied or imposed, each Borrower agrees to pay the
full amount of such Taxes and, if such Taxes are Indemnified Taxes, such additional amounts as may
be necessary so that every payment of all amounts due under this Agreement, any note, or Loan
Document, including any amount paid pursuant to this Section 15.11(a) after withholding or
deduction for or on account of any Indemnified Taxes, will not be less than the amount provided for
herein; provided, however, that no Borrower shall be required to pay any such
additional amounts if such additional amounts payable result from Agent’s or such Lender’s own
willful misconduct or gross negligence (as finally determined by a court of competent
jurisdiction). Each Borrower will furnish to Agent as promptly as possible after the date the
payment of any Tax is due pursuant to applicable law certified copies of tax receipts evidencing
such payment by such Borrower or such other evidence of payment as is reasonably acceptable to
Agent.

(b) If Agent or a Lender claims an exemption from or reduction of United States withholding
Tax, such Person agrees with and in favor of Agent and each Borrower, to deliver to Agent and each
Borrower, and Agent agrees to deliver to each Borrower:

(i) if such Person claims an exemption from United States withholding Tax pursuant to the
portfolio interest exception, (A) a statement of such Person, signed under penalty of perjury, that
it is not a (I) a “bank” as described in Section 881(c)(3)(A) of the IRC, (II) a 10% shareholder of
any Borrower (within the meaning of Section 871(h)(3)(B) of the IRC), or (III) a controlled foreign
corporation related to any Borrower within the meaning of Section 864(d)(4) of the IRC, and (B) a
properly completed and executed IRS Form W-8BEN, before receiving its first payment under this
Agreement, any note or any other Loan Document, and at any other time reasonably requested by Agent
or any Borrower, as applicable;

(ii) if such Person claims an exemption from, or a reduction of, withholding Tax under a
United States tax treaty, a properly completed and executed IRS Form W-8BEN before receiving its
first payment under this Agreement, any note or any other Loan Document, and at any other time
reasonably requested by Agent or any Borrower, as applicable;

(iii) if such Person claims that interest or any other amount paid under this Agreement, any
note or any other Loan Document is exempt from United States withholding Tax because it is
effectively connected with a United States trade or business of such Person, two properly completed
and executed copies of IRS Form W-8ECI before receiving its first payment under this Agreement, any
note or any other Loan Document, and at any other time reasonably requested by Agent or any
Borrower, as applicable; or

(iv) such other form or forms, including IRS Form W-9 and IRS Form W-8 IMY (including
supporting documentation), as may be required under the IRC or other laws of the United States as a
condition to exemption from, or reduction of, United States withholding or backup withholding Tax
before receiving its first payment under this Agreement, as applicable, any note or any other Loan
Document, as applicable and at any other time reasonably requested by Agent or any Borrower, as
applicable.

Each Lender agrees promptly to notify Agent and Administrative Borrower of any change in its
circumstances which would modify or render invalid any claimed exemption or reduction form.

(c) If Agent or a Lender claims an exemption from or reduction of withholding Tax in a
jurisdiction other than the United States, such Lender agrees with and in favor of Agent and
Borrowers, to deliver to Agent and each Borrower, and Agent agrees to deliver to each Borrower, any
such form or forms, as may be required under the laws of such jurisdiction as a condition to
exemption from, or reduction of, foreign withholding or backup withholding Tax before receiving its
first payment under this Agreement, any note or any other Loan Document and at any other time
reasonably requested in writing by Agent or any Borrower as applicable.

Each Lender agrees promptly to notify Agent and Administrative Borrower of any change in its
circumstances which would modify or render invalid any claimed exemption or reduction form.

(d) If any Lender claims exemption from, or reduction of, withholding Tax and such Lender
sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of
Borrowers to such Lender, such Lender shall promptly notify Agent and Administrative Borrower of
the percentage amount as to which it is no longer the beneficial owner of Obligations of Borrowers
to such Lender. To the extent of such percentage amount, Agent and Borrowers will treat such
Lender’s documentation provided pursuant to Sections 15.11(b) or 15.11(c) as no
longer valid. With respect to such percentage amount, Lender shall provide new documentation,
pursuant to Sections 15.11(b) or 15.11(c), as applicable.

(e) If Agent or any Lender is entitled to a reduction in the applicable withholding Tax, and
has timely delivered to Agent and each Borrower the form or forms required pursuant to Section
15.11(b), 15.11(c) or 15.11(d), as applicable, Agent or the relevant Borrower
may withhold from any interest or other payment to such Person an amount equal to the applicable
withholding Tax after taking into account such reduction. If the forms or other documentation
required by Section 15.11(b), 15.11(c) or 15.11(d), as applicable, are not
delivered or timely delivered to Agent or such Borrower, then Agent or such Borrower may withhold
from any interest or other payment to such Person not providing such forms or other documentation
an amount equal to the applicable withholding Tax required by applicable law as the result of not
providing such form or documentation and Agent or such Lender, as applicable, shall not be entitled
to receive any additional amount on account of such withholding Tax from any Borrower pursuant to
the penultimate sentence of Section 15.11(a). The preceding sentence shall not apply to
any additional amounts required to be paid pursuant to the penultimate sentence of Section
15.11(a) on account of withholding Taxes that would have been imposed regardless of the failure
to deliver (or timely deliver) the applicable form or documentation.

(f) If the IRS or any other Governmental Authority of the United States or any other
jurisdiction asserts a claim that Agent or any Borrower did not properly withhold Tax from amounts
paid to or for the account of any Lender due to a failure on the part of the Lender (because the
appropriate form was not timely delivered, was not properly completed or executed, or because such
Lender failed to notify Agent or such Borrower of a change in circumstances which rendered the
exemption from, or reduction of, withholding Tax ineffective, or for any other reason) such Lender
shall indemnify and hold Agent or such Borrower harmless for all amounts paid, directly or
indirectly, by Agent or such Borrower, as Tax or otherwise, including penalties and interest, and
including any Taxes imposed by any jurisdiction on the amounts payable to Agent under this
Section 15.11, together with all costs and expenses (including attorneys fees and
expenses). The obligation of the Lenders under this subsection shall survive the payment of all
Obligations and the resignation or replacement of Agent.

(g) So long as no Default or Event of Default is continuing, if Agent or any Lender shall
become aware that it is entitled to receive a refund in respect of Indemnified Taxes as to which it
has received additional amounts from any Borrower pursuant to the penultimate sentence of
Section 15.11(a), it shall promptly notify such Borrower of the availability of such refund
and shall, within 30 days after receipt of a request by such Borrower, apply for such refund at
such Borrower’s sole cost and expense. If Agent or any Lender receives a refund in respect of any
Indemnified Taxes as to which it has received additional amounts from any Borrower pursuant to the
penultimate sentence of Section 15.11(a), it shall promptly notify such Borrower of its
receipt of such refund and shall, within 30 days after receipt of a request by such Borrower (or
promptly upon receipt of the refund, if such Borrower has requested application for such refund
pursuant hereto), pay the amount of such refund to such Borrower, net of Agent’s or such Lender’s,
as applicable, costs and expenses, and without interest thereon; provided, however,
that such Borrower, upon request by Agent or such Lender, shall return such refund to Agent or such
Lender, as applicable, in the event that Agent or such Lender is required to repay such refund to
the relevant Governmental Authority. Nothing contained in this Section 15.11(g) shall
require Agent or any Lender to (i) make available to any Borrower any of such Person’s tax returns
or any other information relating to its taxes that it deems to be confidential; (ii) pursue any
claim for refund without adequate assurance and indemnity from Borrower that the Lender’s or
Agent’s costs and expenses for pursuing such refund will be paid by Borrower or (iii) pursue any
claim for refund that would subject Lender to additional Taxes or penalties.

15.12. Collateral Matters.

(a) The Lenders hereby irrevocably authorize Agent, at its option and in its sole discretion,
to release any Lien on any Collateral (i) upon the termination of the Revolver Commitments and
payment and satisfaction in full by Borrowers of all Obligations, (ii) constituting property being
sold or disposed of if a release is required or desirable in connection therewith and if
Administrative Borrower certifies to Agent that the sale or disposition is permitted under
Section 6.4 of this Agreement or the other Loan Documents (and Agent may rely conclusively
on any such certificate, without further inquiry), (iii) constituting property in which no Borrower
or its Subsidiaries owned any interest at the time the Agent’s Lien was granted nor at any time
thereafter, or (iv) constituting property leased to a Borrower or its Subsidiaries under a lease
that has expired or is terminated in a transaction permitted under this Agreement. Except as
provided above, Agent will not execute and deliver a release of any Lien on any Collateral without
the prior written authorization of (y) if the release is of all or substantially all of the
Collateral, all of the Lenders, or (z) otherwise, the Required Lenders. Upon request by Agent or
Administrative Borrower at any time, the Lenders will confirm in writing Agent’s authority to
release any such Liens on particular types or items of Collateral pursuant to this
Section 15.12; provided, however, that (1) Agent shall not be required to
execute any document necessary to evidence such release on terms that, in Agent’s opinion, would
expose Agent to liability or create any obligation or entail any consequence other than the release
of such Lien without recourse, representation, or warranty, and (2) such release shall not in any
manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being
released) upon (or obligations of Borrowers in respect of) all interests retained by Borrowers,
including, the proceeds of any sale, all of which shall continue to constitute part of the
Collateral.

(b) Agent shall have no obligation whatsoever to any of the Lenders to assure that the
Collateral exists or is owned by Borrowers or is cared for, protected, or insured or has been
encumbered, or that the Agent’s Liens have been properly or sufficiently or lawfully created,
perfected, protected, or enforced or are entitled to any particular priority, or to exercise at all
or in any particular manner or under any duty of care, disclosure or fidelity, or to continue
exercising, any of the rights, authorities and powers granted or available to Agent pursuant to any
of the Loan Documents, it being understood and agreed that in respect of the Collateral, or any
act, omission, or event related thereto, subject to the terms and conditions contained herein,
Agent may act in any manner it may deem appropriate, in its sole discretion given Agent’s own
interest in the Collateral in its capacity as one of the Lenders and that Agent shall have no other
duty or liability whatsoever to any Lender as to any of the foregoing, except as otherwise provided
herein.

15.13. Restrictions on Actions by Lenders; Sharing of Payments.

(a) Each of the Lenders agrees that it shall not, without the express written consent of
Agent, and that it shall, to the extent it is lawfully entitled to do so, upon the written request
of Agent, set off against the Obligations, any amounts owing by such Lender to Borrowers or any
deposit accounts of Borrowers now or hereafter maintained with such Lender. Each of the Lenders
further agrees that it shall not, unless specifically requested to do so in writing by Agent, take
or cause to be taken any action, including, the commencement of any legal or equitable proceedings,
to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral.

(b) If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or
otherwise, any proceeds of Collateral or any payments with respect to the Obligations, except for
any such proceeds or payments received by such Lender from Agent pursuant to the terms of this
Agreement, or (ii) payments from Agent in excess of such Lender’s Pro Rata Share of all such
distributions by Agent, such Lender promptly shall (A) turn the same over to Agent, in kind, and
with such endorsements as may be required to negotiate the same to Agent, or in immediately
available funds, as applicable, for the account of all of the Lenders and for application to the
Obligations in accordance with the applicable provisions of this Agreement, or (B) purchase,
without recourse or warranty, an undivided interest and participation in the Obligations owed to
the other Lenders so that such excess payment received shall be applied ratably as among the
Lenders in accordance with their Pro Rata Shares; provided, however, that to the extent that such
excess payment received by the purchasing party is thereafter recovered from it, those purchases of
participations shall be rescinded in whole or in part, as applicable, and the applicable portion of
the purchase price paid therefor shall be returned to such purchasing party, but without interest
except to the extent that such purchasing party is required to pay interest in connection with the
recovery of the excess payment.

15.14. Agency for Perfection. Agent hereby appoints each other Lender as its agent
(and each Lender hereby accepts such appointment) for the purpose of perfecting the Agent’s Liens
in assets which, in accordance with Article 8 or Article 9, as applicable, of the Code can be
perfected only by possession or control. Should any Lender obtain possession or control of any
such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request
therefor shall deliver possession or control of such Collateral to Agent or in accordance with
Agent’s instructions.

15.15. Payments by Agent to the Lenders. All payments to be made by Agent to the
Lenders shall be made by bank wire transfer of immediately available funds pursuant to such wire
transfer instructions as each party may designate for itself by written notice to Agent.
Concurrently with each such payment, Agent shall identify whether such payment (or any portion
thereof) represents principal, premium, fees, or interest of the Obligations.

15.16. Concerning the Collateral and Related Loan Documents. Each member of the
Lender Group authorizes and directs Agent to enter into this Agreement and the other Loan
Documents. Each member of the Lender Group agrees that any action taken by Agent in accordance
with the terms of this Agreement or the other Loan Documents relating to the Collateral and the
exercise by Agent of its powers set forth therein or herein, together with such other powers that
are reasonably incidental thereto, shall be binding upon all of the Lenders.

15.17. Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders;
Other Reports and Information. By becoming a party to this Agreement, each Lender:

(a) is deemed to have requested that Agent furnish such Lender, promptly after it becomes
available, a copy of each field audit or examination report (each a “Report” and
collectively, “Reports”) prepared by or at the request of Agent, and Agent shall so furnish
each Lender with such Reports,

(b) expressly agrees and acknowledges that Agent does not (i) make any representation or
warranty as to the accuracy of any Report, and (ii) shall not be liable for any information
contained in any Report,

(c) expressly agrees and acknowledges that the Reports are not comprehensive audits or
examinations, that Agent or other party performing any audit or examination will inspect only
specific information regarding Borrowers and will rely significantly upon Borrowers’ and their
Subsidiaries’ books and records, as well as on representations of Borrowers’ personnel,

(d) agrees to keep all Reports and other material, non-public information regarding Borrowers
and their Subsidiaries and their operations, assets, and existing and contemplated business plans
in a confidential manner in accordance with Section 16.7, and

(e) without limiting the generality of any other indemnification provision contained in this
Agreement, agrees: (i) to hold Agent and any such other Lender preparing a Report harmless from
any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying
Lender may reach or draw from any Report in connection with any loans or other credit
accommodations that the indemnifying Lender has made or may make to Borrowers, or the indemnifying
Lender’s participation in, or the indemnifying Lender’s purchase of, a loan or loans of Borrowers;
and (ii) to pay and protect, and indemnify, defend and hold Agent, and any such other Lender
preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs,
expenses, and other amounts (including, attorneys fees and costs) incurred by Agent and any such
other Lender preparing a Report as the direct or indirect result of any third parties who might
obtain all or part of any Report through the indemnifying Lender.

In addition to the foregoing: (x) any Lender may from time to time request of Agent in writing
that Agent provide to such Lender a copy of any report or document provided by Borrowers to Agent
that has not been contemporaneously provided by Borrowers to such Lender, and, upon receipt of such
request, Agent promptly shall provide a copy of same to such Lender, (y) to the extent that Agent
is entitled, under any provision of the Loan Documents, to request additional reports or
information from Borrowers, any Lender may, from time to time, reasonably request Agent to exercise
such right as specified in such Lender’s notice to Agent, whereupon Agent promptly shall request of
Administrative Borrower the additional reports or information reasonably specified by such Lender,
and, upon receipt thereof from Administrative Borrower, Agent promptly shall provide a copy of same
to such Lender, and (z) any time that Agent renders to Administrative Borrower a statement
regarding the Loan Account, Agent shall send a copy of such statement to each Lender.

15.18. Several Obligations; No Liability. Notwithstanding that certain of the Loan
Documents now or hereafter may have been or will be executed only by or in favor of Agent in its
capacity as such, and not by or in favor of the Lenders, any and all obligations on the part of
Agent (if any) to make any credit available hereunder shall constitute the several (and not joint)
obligations of the respective Lenders on a ratable basis, according to their respective Revolver
Commitments, to make an amount of such credit not to exceed, in principal amount, at any one time
outstanding, the amount of their respective Revolver Commitments. Nothing contained herein shall
confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect
of, the business, assets, profits, losses, or liabilities of any other Lender. Each Lender shall
be solely responsible for notifying its Participants of any matters relating to the Loan Documents
to the extent any such notice may be required, and no Lender shall have any obligation, duty, or
liability to any Participant of any other Lender. Except as provided in Section 15.7, no
member of the Lender Group shall have any liability for the acts of any other member of the Lender
Group. No Lender shall be responsible to any Borrower or any other Person for any failure by any
other Lender to fulfill its obligations to make credit available hereunder, nor to advance for it
or on its behalf in connection with its Revolver Commitment, nor to take any other action on its
behalf hereunder or in connection with the financing contemplated herein.

15.19. Bank Product Providers. Each Bank Product Provider shall be deemed a party
hereto for purposes of any reference in a Loan Document to the parties for whom Agent is acting; it
being understood and agreed that the rights and benefits of such Bank Product Provider under the
Loan Documents consist exclusively of such Bank Product Provider’s right to share in payments and
collections out of the Collateral as more fully set forth herein. In connection with any such
distribution of payments and collections, Agent shall be entitled to assume no amounts are due to
any Bank Product Provider unless such Bank Product Provider has notified Agent in writing of the
amount of any such liability owed to it prior to such distribution.

	16.	 	GENERAL PROVISIONS.

16.1. Effectiveness. This Agreement shall be binding and deemed effective when
executed by Borrowers, Agent, and each Lender whose signature is provided for on the signature
pages hereof.

16.2. Section Headings. Headings and numbers have been set forth herein for
convenience only. Unless the contrary is compelled by the context, everything contained in each
Section applies equally to this entire Agreement.

16.3. Interpretation. Neither this Agreement nor any uncertainty or ambiguity herein
shall be construed against the Lender Group or Borrowers, whether under any rule of construction or
otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed
and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the
purposes and intentions of all parties hereto.

16.4. Severability of Provisions. Each provision of this Agreement shall be severable
from every other provision of this Agreement for the purpose of determining the legal
enforceability of any specific provision.

16.5. Counterparts; Electronic Execution. This Agreement may be executed in any
number of counterparts and by different parties on separate counterparts, each of which, when
executed and delivered, shall be deemed to be an original, and all of which, when taken together,
shall constitute but one and the same Agreement. Delivery of an executed counterpart of this
Agreement by telefacsimile or other electronic method of transmission shall be equally as effective
as delivery of an original executed counterpart of this Agreement. Any party delivering an
executed counterpart of this Agreement by telefacsimile or other electronic method of transmission
also shall deliver an original executed counterpart of this Agreement but the failure to deliver an
original executed counterpart shall not affect the validity, enforceability, and binding effect of
this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis.

16.6. Revival and Reinstatement of Obligations. If the incurrence or payment of the
Obligations by any Borrower or Guarantor or the transfer to the Lender Group of any property should
for any reason subsequently be declared to be void or voidable under any state or federal law
relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent
conveyances, preferences, or other voidable or recoverable payments of money or transfers of
property (each, a “Voidable Transfer”), and if the Lender Group is required to repay or
restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable
advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the
Lender Group is required or elects to repay or restore, and as to all reasonable costs, expenses,
and attorneys fees of the Lender Group related thereto, the liability of Borrowers or Guarantor, if
any, automatically shall be revived, reinstated, and restored and shall exist as though such
Voidable Transfer had never been made.

16.7. Confidentiality.

(a) Agent and Lenders each individually (and not jointly or jointly and severally) agree that
information regarding Borrowers and their Subsidiaries, their operations, assets, and existing and
contemplated business plans shall be treated by Agent and the Lenders in a confidential manner, and
shall not be disclosed by Agent and the Lenders to Persons who are not parties to this Agreement,
except: (i) to attorneys for and other advisors, accountants, auditors, and consultants to any
member of the Lender Group, (ii) to Subsidiaries and Affiliates of any member of the Lender Group
(including the Bank Product Providers), provided that any such Subsidiary or Affiliate shall have
agreed to receive such information hereunder subject to the terms of this Section 16.7,
(iii) as may be required by statute, decision, or judicial or administrative order, rule, or
regulation, (iv) as may be agreed to in advance by Administrative Borrower or its Subsidiaries or
as requested or required by any Governmental Authority pursuant to any subpoena or other legal
process, (v) as to any such information that is or becomes generally available to the public (other
than as a result of prohibited disclosure by Agent or the Lenders), (vi) in connection with any
assignment, participation or pledge of any Lender’s interest under this Agreement, provided that
any such assignee, participant, or pledgee shall have agreed in writing to receive such information
hereunder subject to the terms of this Section, and (vii) in connection with any litigation or
other adversary proceeding involving parties hereto which such litigation or adversary proceeding
involves claims related to the rights or duties of such parties under this Agreement or the other
Loan Documents. The provisions of this Section 16.7(a) shall survive for 2 years after the
payment in full of the Obligations.

(b) Anything in this Agreement to the contrary notwithstanding, Agent may provide information
concerning the terms and conditions of this Agreement and the other Loan Documents to loan
syndication and pricing reporting services.

16.8. Lender Group Expenses. Borrowers agree to pay any and all Lender Group Expenses
within 5 days after demand therefor by Agent. If Borrowers do not object to any Lender Group
Expenses within 5 days of the date so demanded, then the demanded Lender Group Expenses shall be
conclusive (this sentence shall not limit any Borrower’s obligations to pay any Lender Group
Expenses pursuant to the terms of this Agreement or any other Loan Document). Borrowers agree that
their obligations contained in this Section 16.8 shall survive payment or satisfaction in
full of all other Obligations.

16.9. Integration. This Agreement, together with the other Loan Documents, reflects
the entire understanding of the parties with respect to the transactions contemplated hereby and
shall not be contradicted or qualified by any other agreement, oral or written, before the date
hereof.

16.10. Parent as Agent for Borrowers. Each Borrower hereby irrevocably appoints
Parent as the borrowing agent and attorney-in-fact for all Borrowers (the “Administrative
Borrower”) which appointment shall remain in full force and effect unless and until Agent shall
have received prior written notice signed by each Borrower that such appointment has been revoked
and that another Borrower has been appointed Administrative Borrower. Each Borrower hereby
irrevocably appoints and authorizes the Administrative Borrower (i) to provide Agent with all
notices with respect to Advances and Letters of Credit obtained for the benefit of any Borrower and
all other notices and instructions under this Agreement and (ii) to take such action as the
Administrative Borrower deems appropriate on its behalf to obtain Advances and Letters of Credit
and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of
this Agreement. It is understood that the handling of the Loan Account and Collateral of Borrowers
in a combined fashion, as more fully set forth herein, is done solely as an accommodation to
Borrowers in order to utilize the collective borrowing powers of Borrowers in the most efficient
and economical manner and at their request, and that Lender Group shall not incur liability to any
Borrower as a result hereof. Each Borrower expects to derive benefit, directly or indirectly, from
the handling of the Loan Account and the Collateral in a combined fashion since the successful
operation of each Borrower is dependent on the continued successful performance of the integrated
group. To induce the Lender Group to do so, and in consideration thereof, each Borrower hereby
jointly and severally agrees to indemnify each member of the Lender Group and hold each member of
the Lender Group harmless against any and all liability, expense, loss or claim of damage or
injury, made against the Lender Group by any Borrower or by any third party whosoever, arising from
or incurred by reason of (a) the handling of the Loan Account and Collateral of Borrowers as herein
provided, (b) the Lender Group’s relying on any instructions of the Administrative Borrower, or
(c) any other action taken by the Lender Group hereunder or under the other Loan Documents, except
that Borrowers will have no liability to the relevant Agent-Related Person or Lender-Related Person
under this Section 16.10 with respect to any liability that has been finally determined by
a court of competent jurisdiction to have resulted solely from the gross negligence or willful
misconduct of such Agent-Related Person or Lender-Related Person, as the case may be.

16.11. USA Patriot Act Each Lender that is subject to the requirements of the USA
Patriot Act (Title 111 of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”)
hereby notifies Borrowers that pursuant to the requirements of the Act, it is required to obtain,
verify and record information that identifies Borrowers, which information includes the name and
address of Borrowers and other information that will allow such Lender to identify Borrowers in
accordance with the Act.

[Signature pages to follow.]

4

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and
delivered as of the date first above written.

	 
	 

	ENESCO GROUP, INC.,

an Illinois corporation, as debtor and debtor-in-possession

By: /s/ Marie Meisenbach Graul

Title: Chief Financial Officer / Executive Vice President

	 
	ENESCO INTERNATIONAL LTD.,
	a Delaware corporation, as debtor and debtor-in-possession
	By: /s/ Charles E. Sanders
	Title: Treasurer

	 
	GREGG MANUFACTURING, INC.,
	a California corporation, as debtor and debtor-in-possession
	By: /s/ Charles E. Sanders
	Title: Chief Financial Officer, Treasurer, and Secretary

	 
	

WELLS FARGO FOOTHILL, INC.,
a California corporation, as Agent and as a Lender
By: /s/ Katherine McDonald
Title: Vice President, Underwriter
WELLS FARGO FOOTHILL, INC.,
	a California corporation, as Agent and as a Lender
	By: /s/ Katherine McDonald
	Title: Vice President, Underwriter

5EX-10.1

MEMBERSHIP INTEREST PURCHASE AND SALE AGREEMENT

THIS MEMBERSHIP INTEREST PURCHASE AND SALE AGREEMENT (this “Agreement”), is made as of this
22nd day of January, 2007 (the “Effective Date”), by and between NNN SOUTH CRAWFORD
MEMBER, LLC, a Delaware limited liability company (“Seller”); NNN SOUTHPOINTE, LLC, a Delaware
limited liability company (the “Company”); and NNN HEALTHCARE/OFFICE REIT HOLDINGS, L.P., a
Delaware limited partnership (“Buyer”).

Recitals

A. The Company is a Delaware limited liability company.

B. The Company owns that certain real property commonly known as Southpointe Office Park,
Epler Park and 1030 Professional Building in Indianapolis, Indiana and more particularly described
on Exhibit A  attached hereto (the “Property”).

C. The Company also owns certain personal property in conjunction with its ownership of the
Property.

D. All of the Company’s liabilities are listed on Exhibit C attached hereto and made a
part hereof, and such liabilities are being transferred to and assumed by the Buyer (the
“Liabilities”).

E. Seller is the owner and holder of one hundred percent (100%) of the membership interests in
the Company.

F. Buyer desires to purchase and Seller desires to sell all of the membership interests in the
Company which owns or will own the Property upon the terms and conditions hereinafter set forth.

Agreement

NOW, THEREFORE, in consideration of the mutual promises herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

Recitals. The Recitals are made an integral part of this Agreement.

2. Sale and Purchase. Subject to the terms and conditions set forth herein, Seller
hereby agrees to sell and Buyer hereby agrees to purchase all of Seller’s membership interests in
the Company (the “Membership Interests”), being one hundred Percent (100%) of the issued and
outstanding Membership Interests in the Company at the time of Closing (defined below).

3. Purchase Price / Closing. The purchase price (the “Purchase Price”) for the
Membership Interests is Fourteen Million Eight Hundred Thousand Dollars ($14,800,000), reduced by
the Liabilities. The Purchase Price shall be due and payable at Closing. The closing for the sale
of Membership Interests in the Company (the “Closing”) shall occur on a day which is mutually
agreeable to Seller and Buyer no later than ten (10) days following the Effective Date, provided
that all conditions to Closing set forth in this Agreement have been satisfied, including but not
limited to the terms of Section 14 hereof.

4. Delivery of Certain Materials to Buyer. Buyer acknowledges that Seller has
delivered or made available to Buyer the following:

(a) A copy of Company’s Articles of Organization, Operating Agreement and all of Company’s
books and records including books of account;

(b) The financial reports, unaudited financial statements, and the Company’s tax returns from
Company’s inception and un-audited financial records (including balance sheets and results of
operation), including a current list of Company accounts payable and receivable;

(c) All Company contracts currently in effect, and the terms of any contracts currently
pending;

(d) A copy of all pending litigation, governmental investigations or actions or other
proceedings affecting the Company, the Property and/or Seller and a description of any threatened
claims, litigation or governmental investigations or actions or other proceedings affecting the
Company, the Property and/or Seller;

(e) A list of all employees of the Company, dates of employment, current salaries and a copy
of all employment contracts, if any;

(f) A list of all existing insurance policies for the Company;

(g) Copies of the most current title reports and all owner’s policies of title insurance, if
any, with respect to the Property or any portion thereof previously obtained by or in the
possession or control of Seller, the Company, or the Company’s agents. In addition, a copy of all
title-objection letters or notices with respect to the Property or any portion thereof, and any
response thereto;

(h) Copies of all existing leases on the Property or any portion thereof and a schedule of
security deposits and accrued interest, if any;

(i) Copies of the most current survey of the Property or any portion thereof and all other
surveys with respect to the Property or any portion thereof in the possession or control of the
Seller, the Company or the Company’s agents or the engineer or surveyor that prepared the same;

(j) Copies of all real property tax assessments or bills for the Property in Seller’s
possession or control;

(k) Copies of all improvement plans and specifications and any and all contracts affecting the
Property or any portion thereof;

(l) Copies of all environmental reports, surveys, all engineering investigations and studies,
including but not limited to archeological studies, grading studies, development layouts and plats,
zoning and community comments, letters, and any other proposals, investigations, studies, documents
or information in the possession of Seller and/or Company with respect to the Property or any
portion thereof (If such reports, surveys, proposals, investigations, studies, comments, letters,
documents or information are not in the possession of Seller or Company, Seller or Company shall
authorize the individual or organization in possession of these items to release them to Buyer.);

(m) Copies of all cross-easement agreements, master association declarations, homeowners
association documents, covenants, conditions, and restrictions and other agreements relating to the
development of the Property or any portion thereof in the possession or control of the Seller, the
Company, or the Company’s agents or the engineer, surveyor, or attorney that prepared the same;

(n) Copies of all licenses, permits, service contracts, warranties and guaranties related to
the Property or any portion thereof or to the Company; and

(o) Copies of all bonds, letters of credit or other financial instruments securing development
work related to the Property or any portion thereof.

5. Inspections and Due Diligence Period. Buyer hereby acknowledges that Buyer has
reviewed (i) the materials listed in Section 4 above and (ii) the Property, and that Buyer is
satisfied with its review of said materials and the Property.

6. Title Insurance. The Company, Seller and Buyer shall cooperate as is reasonably
necessary for the title company currently insuring the Property to issue such endorsements as may
be necessary or desirable, in Buyer’s reasonable discretion.

7. Covenants, Representations and Warranties of Seller. In addition to the
representations and warranties contained elsewhere in this Agreement, Seller makes the following
representations, warranties and covenants as of the Effective Date and as of the date of Closing,
each of which is material, is relied upon by Buyer, and shall be true and correct as of the
Effective Date and as of the date of Closing:

(a) The Company is a Delaware limited liability company, duly organized, validly existing, and
in good standing under the laws of the State of Delaware. The Company has all requisite power to
conduct its business and to own and develop the Property.

(b) Seller owns all of the Membership Interests of the Company and none of the Membership
Interests are subject to any security interests, liens, pledges, charging orders, encumbrances or
other claims, except the Mezzanine Documents (hereafter defined). The Membership Interests have
been duly and validly issued and are fully-paid and non-assessable. Seller is the record and
beneficial owner of all of the Membership Interests, the Membership Interests constitute 100% of
all of the issued and outstanding Membership Interests of Company, and there are no options,
warrants, convertible securities, subscriptions or other agreements under which Company may be
obligated to issue membership interests or any other equity securities. Seller owns and at Closing
will have the absolute right to sell, assign and transfer the Membership Interests to Buyer, free
and clear of any security interests, liens, pledges, charging orders, encumbrances, other claims,
buy-sell agreements, rights-of-first refusal, or rights of others whatsoever. The Membership
Interests are owned as set forth in Exhibit D.

(c) As of the Closing, there will be no outstanding debts, liabilities, undertakings,
performances, commitments or other obligations of the Company of any nature, whether absolute,
accrued, contingent, or otherwise, and whether known or unknown, and whether due or to become due,
and whether in contract, tort or otherwise, except for the Liabilities set forth on Exhibit
C.

(d) The financial reports and financial statements, the Company tax returns and all other
Company financial information previously delivered to Buyer under Section 4, if any, are
complete and accurate in all material aspects, are in accordance with the books and records of the
Company, represent fairly the financial condition and result of operation of the Company for the
periods covered thereby, are prepared in accordance with generally accepted accounting principles
consistently applied. The Company has no liabilities or other obligations which are not fully
shown or provided in the financial records of Company furnished to or made available to Buyer, and
represent all such reports, statements and tax returns for the Company.

(e) Except with regard to a mezzanine loan (the “Mezzanine Loan”) evidenced by a Promissory
Note in the amount of $6,706,000 in favor of LaSalle Bank National Association and the documents
associated with the Mezzanine Loan, including a Pledge Agreement, dated August 18, 2006
(collectively, the “Mezzanine Documents”), since the inception of the Company, neither Seller nor
the Company has:

(i) sold, encumbered, assigned or transferred any of the Company assets, except in the
ordinary course of business, except any assets which shall be transferred according to Section
13 below prior to Closing;

(ii) created, incurred, assumed or guaranteed any indebtedness for money borrowed or
mortgaged, pledged or subjected any of the Company assets to any mortgage, lien, pledge, security
interest, conditional sales contract or other encumbrance of any nature whatsoever, except any
debts or liens which shall be transferred in accordance with Section 13 below prior to
Closing or which are permitted pursuant to Section 6 that will be discharged or become
Retained Liabilities in connection with the Closing;

(iii) made or suffered any amendment or termination of any material agreement, contract,
commitment, lease or plan of the Company to which it is a party or by which it is bound, or
cancelled, modified or waived any debts or claims held by it or waived any rights or substantial
value, whether or not in the ordinary course of business; or

(iv) encumbered, granted a security interest or caused or permitted any lien, charging order
or other claim to attach against any of the Membership Interests.

Seller covenants to satisfy the Mezzanine Loan and take such actions as may be necessary to secure
release of all Mezzanine Documents at or prior to Closing.

(f) The Company has accurately prepared and timely filed all income, gross receipts, franchise
or other tax returns that it was or is required to file. Such tax returns are accurate, complete
and correct in all material respects. Either the Company or the Seller has timely paid all tax
liabilities (including any interest and penalties) due and owing in connection with the Company’s
operations. No claim has been made by any taxing authority that there is any deficiency in the
payment of taxes arising from the Company’s operations.

(g) At Closing the Company will hold fee simple title to the Property and all of the
improvements, fixtures and equipment situated thereon, free and clear of liens, encumbrances,
restrictions and easements, which would affect the marketability of the title, except liens set
forth in the title policy currently insuring the Property and current mortgages of record that are
set forth as Liabilities on Exhibit C.

(h) The only assets of the Company as of the date of Closing shall be the Property and the
following assets (together with the Property and the Property Purchase Contracts sometimes referred
to as the “Project Assets”): all contracts, leases, surveys, plans, title policies and
commitments, and other rights and agreements relating to the Property, all structures, improvements
and fixtures on the Property, all insurance policies of the Company, all rights to the names
associated with the Property as set forth in the Recitals, and all books, records and documents of
the Company, and all other assets of the Company existing as of the Effective Date. The Company
has good and marketable title to all the Project Assets other than the Property, free and clear of
all security interests, liens, pledges, encumbrances or other claims.

(i) The Property is not subject to any unrecorded covenants or equitable servitudes of any
kind.

(j) There is no litigation, actions, suits, investigations, or other proceedings pending or,
to the best of Company’s or Seller’s knowledge, threatened against or affecting the Property, the
Company, its other assets or the Membership Interests, whether at law or in equity or before any
federal, state or municipal or local government authority, department, commission, board, bureau,
agency or instrumentality thereof. Neither Seller nor Company has received notice of, or has
knowledge of, any violation or alleged violation of any law, statute, ordinance, regulation or
order with respect to the Property, the Company, its other assets or the Membership Interests.
Seller and Company are in compliance with all laws, statutes, ordinances, regulations and orders
which relate to the Company’s operations or the ownership of the Property.

(k) Company has all required licenses and permits necessary in the operation of its business
or for the ownership of the Property, and none of such licenses or permits are conditional or
restricted in any material respect. All returns, reports, plans and filings of any kind or nature
(other than tax returns) required to be filed prior to the Closing date by the Company with any
governmental authorities have been properly completed and filed in material compliance with all
applicable statutory or regulatory requirements.

(l) Seller and Company have each duly and validly executed this Agreement, each has full power
to enter into and perform this Agreement, each has obtained all necessary consents and approvals,
and the parties executing this Agreement on behalf of Seller and Company have been duly authorized.
Seller and the Company shall give such further assurances as Buyer may reasonably request. This
Agreement is enforceable against Seller and Company in accordance with its terms, subject to
creditors’ rights laws and general equitable principles of enforcement.

(m) Neither Seller nor Company has received notice of, or has knowledge of, any assessments
for public improvements against the Property or any portion thereof which now, or at the time of
Closing will, remain unpaid, including, without limitation, those assessments for construction of
sewer and water lines and mains, streets, sidewalks and curbs. To the best of Seller’s and
Company’s knowledge, no public improvements have been ordered or threatened to be made which have
not heretofore been completed, assessed and paid for. Neither Seller nor Company has received
notice of, or knowledge of, a proposed increase in assessments for real property taxes with respect
to the Property or any portion thereof. There is no unpaid property tax, levy or assessment
against the Property owned by Company at Closing, nor is there any pending or, to the best
knowledge of the Seller and Company, threatened condemnation proceeding against the Property or any
portion thereof.

(n) No work has been done or will be done and no materials have been or will be supplied to
the Property or any portion thereof by or for the benefit of Company that will enable or permit the
filing of a mechanic’s lien or any other lien against the Property or any portion thereof. In the
event any claim is made by any party for the payment of sums due for the furnishing of labor and/or
materials for the Property or any portion thereof subsequent to the date of this Agreement but
prior to the date of Closing, or in the event any lien is filed against the Property or any portion
thereof subsequent to Closing as a result of the furnishing of such materials and/or labor, then
Seller shall expeditiously pay said claim or discharge said lien or obtain a full and complete
release thereof, or provide a sufficient surety bond or other security to fully protect Buyer while
any such claim is being defended or challenged by Company. Seller will execute the necessary
affidavits and indemnification agreements required by Buyer’s title insurance company to eliminate
from its owner’s title policy any exception to claims which could be the basis for mechanics liens.

(o) The Property has free access to and from validly dedicated public highways, streets and
roads and neither Seller nor Company has knowledge of any pending or threatened governmental
investigation or other proceeding or any other fact or condition which would limit or result in the
termination of such access.

(p) Neither the Property nor any portion thereof is subject to any moratoria or other
restriction on the issuance of grading, development, or building permits or the construction of
residential and commercial improvements on the Property in accordance with the Plans.

(q) Neither Seller nor the Company has received notice of, or has knowledge of, any pending
property rezoning or reclassification with respect to the Property or any portion thereof.

(r) Neither the Company, Seller, nor, to the best of Seller’s and Company’s knowledge, any
prior owner, has placed on the Property or any portion thereof or allowed the Property or any
portion thereof to be used for the generating, storage, transporting, treating, maintenance,
emission, or discharge or disposal of, and to the best of Seller’s knowledge the Property and each
portion thereof (including the land, surface water, and any improvements) is free of, any material
amounts of waste or debris and is free of all contamination including: (i) any “hazardous waste”
as defined by the Resource Conservation and Recovery Act of 1976, as amended from time to time, and
regulations promulgated thereunder; (ii) any “hazardous substance” as defined by the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, and
regulations promulgated thereunder; (iii) any hazardous waste, toxic substance or hazardous
substance as defined and/or referenced in the Code of Virginia, Section 10.1-1400 et seq. and
related statutes thereunder; (iv) any substance the presence of which on the Property or any
portion thereof is prohibited by any other federal, state, or local law; and (v) underground
storage tanks or surface impoundments, asbestos containing materials, or any spills of
polychlorinated biphenyls, including those used in hydraulic oils, electric transformers or other
equipment (“Hazardous Materials”). To the best of the Company’s and Seller’s knowledge, the
Company and Seller have disclosed to Buyer the existence of any of the foregoing Hazardous
Materials or environmental conditions affecting the Property or any portion thereof. No person,
private agency or entity has given any notice of or asserted any claim, cause of action, penalty,
cost or demand for payment or compensation, whether or not involving any injury or threatened
injury to human health, the environment or natural resources, resulting or allegedly resulting from
any activity or event described in this paragraph.

(s) Neither the execution of this Agreement nor the consummation of the transactions
contemplated hereby will: (i) conflict with, or result in a breach of, the terms, conditions or
provisions of, or constitute a default under, or accelerate any indebtedness or other payment, or
result in the forfeiture or termination of rights under any agreement or instrument to which Seller
or Company is a party, including but not limited to Company’s organizational documents; (ii)
violate any restriction to which Seller or Company is subject; or (iii) violate or conflict with
any law, statute, regulation, ordinance or order.

(t) Neither the Property nor any portion thereof is subject to any leases, contracts or other
agreements which give any person or entity an interest in the Property, except the leases and other
contracts previously delivered or made available to Buyer, which are in full force and effect and
neither the Company nor any other party thereto is in default under such contracts.

(u) Seller is not contemplating either (i) the filing of a petition by it under any bankruptcy
or insolvency laws (and Seller has no knowledge of any person contemplating the filing of any such
petition against it), or (ii) the liquidation of all or a major portion of the assets of Seller
except the sale of the Property hereunder.

(v) Seller Indemnitors (as defined below) shall indemnify, defend and save Buyer and all other
parties indemnified by Buyer under Section 19 hereof harmless from and against all
liabilities, fees, costs, and expenses, including, but not limited to, costs of litigation and
reasonable attorneys’ fees, arising out of (i) any breach of the representations and warranties of
Seller and/or Company set forth in this Agreement and (ii) any and all acts and omissions of Seller
and Company, their respective agents, servants, employees, contractors, successors and assigns
prior to Closing;

(w) Seller and the Company have delivered or made available to Buyer all documents and
materials set forth in Section 4 hereof.

(x) Section 1445 of the Internal Revenue Code provides that a purchaser of a U.S. real
property interest must withhold tax if seller is a foreign person. In connection therewith,
Seller warrants that withholding of tax is not required upon disposition of the Membership
Interests being sold pursuant to this Agreement, and also represent the following:

(i) Company is not a foreign company, foreign partnership, foreign trust, or foreign estate,
and none of the individuals included in the definition of Seller are foreign persons (as those
terms are defined in the Internal Revenue Code and the regulations promulgated thereunder);

(ii) Intentionally deleted;

(iii) Company’s principal office address is 1551 N. Tustin Avenue, Suite 300, Santa Ana, CA
92705.

(iv) Company will provide on or before the Closing date a certification of nonforeign status
as provided by Treas. Reg. Section 1.1445-5T(b)(2)(iii)(B); and

(v) Seller and Company agree that the information contained in this Section 7(x) may
be disclosed to the Internal Revenue Service by Buyer.

(vi) No taxes, withholding or other liability will be assessed against Company or Buyer under
the Foreign Investment in Real Property Act of 1980, as amended, in connection with the
transactions contemplated by this Agreement.

(y) Intentionally Omitted.

(z) No representation or warranty by Seller or Company in this Agreement, the attached
Exhibits, or any statement, certificate, schedule or document furnished or to be furnished to Buyer
pursuant hereto, or in connection with the transactions contemplated hereby, including but not
limited to those specified in Section 4 hereof, contains or will contain any untrue
statement of material fact, or omits or will omit to state a material fact necessary to make the
statements contained herein or therein not misleading. Seller and Company have disclosed to Buyer
or have identified and made available to Buyer all material information of which they know relating
to the Property, the other Project Assets, the Liabilities and the business, properties, affairs
and financial condition of Company.

(aa) Seller or Company shall immediately notify Buyer, in writing, of any event or condition
known to the parties which occurs prior to Closing hereunder which causes a change in the facts
relating to, or the truth of, any of the above representations or warranties.

(bb) In addition to, but not in limitation of, other default remedies herein elsewhere stated
or provided at law or in equity, in the event that any of the aforesaid representations and/or
warranties is not true, shall not have been complied with, or shall not have transpired as of the
Effective Date or at the time of Closing, notwithstanding any other provision to the contrary
contained in this Agreement or provided at law or in equity, Buyer, at any time prior to or at
Closing, shall provide written notice to Seller of such default and if Seller does not cure such
default within fifteen (15) days after receipt of such notice, Buyer may declare this Agreement
null, void, terminated and of no further effect, in which event, and notwithstanding any other
provision to the contrary contained in this Agreement, except for the representations, warranties
and indemnities provided herein, no party shall have any further obligations or liability to the
other. All covenants, representations and warranties contained in this Agreement shall survive
Closing and shall be for the benefit of Buyer and its successors and assigns.

8. Covenants, Representations and Warranties of Buyer. Buyer makes the following
representations and warranties as of the Effective Date, each of which is material and is relied
upon by Seller and shall be repeated and true at the time of Closing:

(a) Buyer represents and warrants that: (i) Buyer is a Delaware limited partnership, validly
existing, and in good standing under the laws of the State of Delaware; (ii) Buyer has duly and
validly executed this Agreement, and has full power to enter into and perform this Agreement, (iii)
Buyer has obtained all necessary authorizations; and (iv) the parties executing this Agreement and
the documents referred to hereunder on behalf of Buyer have been duly authorized, and the Agreement
and such documents have been duly executed;

(b) Buyer is not contemplating either (i) the filing of a petition by it under any bankruptcy
or insolvency laws (and Buyer has no knowledge of any person contemplating the filing of any such
petition against it), or (ii) the liquidation of all or a major portion of the assets of Buyer;

(c) Buyer shall indemnify and save Seller and the Company and its members harmless for all
acts of Buyer, its agents, servants, employees, contractors, successors and assigns subsequent to
Closing, provided, however, that the foregoing indemnification shall not apply to any acts for
which Buyer is indemnified in connection with breaches of Seller’s representations and warranties
herein or otherwise under this Agreement; and

(d) Buyer acknowledges that the Company will, subsequent to Closing, have continuing
obligations pursuant to agreements entered in by Company prior to Closing, including but not
limited to obligations, if any, arising from the Property Purchase Contracts to the extent that
such obligations survive the closing of such acquisitions.

(e) The covenants, representations and warranties provided in this Agreement shall survive
Closing.

9. Use of Property Until the Closing. Seller and Company, jointly and severally,
agree that, from the Effective Date to the Closing date, Company will: (i) not enter into any
contract or agreement relating to the Property or otherwise without the prior written consent of
Buyer; (ii) not become a party to any service contract that cannot be paid at or by Closing with
respect to or affecting the Property without the prior written consent of Buyer except for
contracts which can be terminated on thirty (30) days’ or less notice; (iii) keep the Property and
any other Project Assets in as good of a condition as exists as of the date hereof, ordinary wear
and tear, casualty and condemnation excepted; (iv) correct all building code or other violations
relating to the Property of which Company or Seller has knowledge as of the Effective Date or any
time thereafter up to the Closing date; and (v) not enter into any amendment, modification,
addendum or supplement of any of the Property Purchase Contacts without the prior written consent
of Buyer.

10. Possession; Risk of Loss; Insurance; Condemnation; Confidentiality.

(a) Possession of the Membership Interests shall be given to Buyer as of the date of Closing
and the Property and the other Project Assets will be in the possession of Company at such time.

(b) The Property and the other Project Assets are to be held at the risk of the Seller until
the Membership Interests have been transferred to Buyer.

(c) During the term of this Agreement, Company shall keep Buyer advised of the nature and
amount of any insurance in effect, and upon request therefor, shall provide Buyer with copies of
such insurance policies. In the event it shall be determined by Buyer that the Property or any
other Project Assets are inadequately insured by Company, Buyer shall have the right, at Buyer’s
option and expense, to obtain such insurance, or additional insurance as shall be satisfactory to
Buyer.

(d) In the event of the condemnation or taking by eminent domain, or sale in lieu thereof, of
all or any substantial part of the Property (substantial shall be defined as any portion of the
Property which reduces the land available for development by more than ten percent (10%)) prior to
the transfer of Membership Interests by Seller hereunder and while this Agreement is in full force
and effect, Buyer shall have the right, by written notice to Seller within five (5) days after
notice by Seller to Buyer of such condemnation, taking or sale, with respect to the Property to
either:

(i) notwithstanding any other provision to the contrary contained in this Agreement, terminate
this Agreement; or

(ii) notify Seller that Buyer intends to proceed forward with the Closing hereunder, with no
reduction in the Purchase Price, notwithstanding such condemnation, in which event the amount of
any such condemnation award with respect to the Property purchased, shall be held by the Company
and shall become subject to Buyer’s control, if, as and when Buyer completes the Closing pursuant
to this Agreement (the proceeds standing in lieu of the condemned Property held by the Company).
If this Agreement is fully terminated as to the purchase of Membership Interests prior to the
Closing, said proceeds shall belong to the Company.

11. Default.

(a) Default by Buyer. In the event that all conditions precedent to Buyer’s
obligation to consummate the transactions contemplated by this Agreement have been satisfied or
waived and Buyer is not entitled to terminate this Agreement under any provisions hereof, then in
the event of default by Buyer under this Agreement, Seller shall have the right to terminate this
Agreement and neither party to this Agreement shall have any further liability to the other for any
damages of any kind whatsoever, whether compensatory, consequential, punitive, or otherwise (except
as to the indemnities contained in Sections 5(d), 7(v), 8(e), 19 and 20 hereof) or be
subject to the remedy of specific performance, and this Agreement shall be and become null and void
and of no further force and effect either at law or in equity.

(b) Default by Seller. In the event Seller shall fail to effectuate the Closing
hereunder for any reason whatsoever, other than by reason of a breach of covenant of Buyer
hereunder, or in the event Seller shall otherwise default under this Agreement, Buyer shall have
the right to terminate this Agreement and shall have the right to pursue all remedies under this
Agreement or at law or in equity, including the remedy of specific performance.

12. Covenant Not to Encumber. Seller represents, warrants and covenants to Buyer that
from the Effective Date until the date of Closing for the Membership Interests or the date of
termination of this Agreement, whichever occurs first, neither Company or Seller will (i) enter
into or execute any contract, covenant, deed, restriction, right-of-way, easement, mortgage, deed
of trust, or other agreement, encumbering, transferring or otherwise affecting the Property, any
other Project Assets or the Membership Interests, (ii) on the Company’s behalf, incur any debts,
liabilities, undertakings, performances, commitments or other obligations or (iii) permit any of
the above to occur.

13. Seller’s Deliveries at Closing and Conditions Precedent to Buyer’s Obligations.

(a) All costs of the transactions set forth in this Section 13 (a) shall be borne by
Buyer. All documents accomplishing the transactions in this Section 13 (a) shall be
mutually acceptable to Seller and Buyer.

(b) Seller shall deliver to Buyer, and/or Buyer’s designee, at the Closing:

(i) Assignment of Membership Interests. The Assignment of Membership Interests
representing legal and beneficial ownership of one hundred percent (100%) of all the outstanding
membership interests of the Company, free and clear of all security interests, liens, pledges,
charging orders, encumbrances, or other claims in substantially the form attached hereto as
Exhibit F.

(ii) Original Company Records and Documents. All original Company records and
documents, including books of account and minute books.

(ii) Certification of Representations and Warranties. A certification that all of the
representations and warranties contained herein are true and correct as of the date of Closing.

(iii) Possession. Possession of the Property.

(iv) Resignations. Resignations of all current managers, officers and other agents of
the Company, effective as of the date of Closing.

(v) Miscellaneous. Such other instruments as may reasonably be required to consummate
the transactions contemplated by this Agreement.

14. Conditions to Closing. Buyer’s obligation to purchase the Membership Interests at
Closing, as defined below, shall be contingent upon Seller’s performance of all obligations and
commitments required to be satisfied prior to or at Closing, and the satisfaction of the following
condition: All covenants, representations, and warranties of Seller and the Company contained
herein shall be true and correct as if made on the Closing date. If the condition set forth at
subsections above is not satisfied at Closing, Buyer shall have the right to extend, waive or
terminate this Agreement and if terminated and no party shall have any further obligation to the
other except as otherwise specifically set forth in this Agreement.

15. Buyer’s Obligation at Closing. Buyer shall pay the Purchase Price in accordance
with Section 3 at Closing.

16. Mechanics of Closing. Seller and Buyer shall deliver to the other at Closing:

(a) evidence that Seller has satisfied Section 13(a) above;

(b) all documents set forth Section 13(b) above; and

(c) the Purchase Price as set forth at Section 15.

17. Closing. Notwithstanding any other provision in this Agreement, including but not
limited to the running of any inspection or due diligence periods, whether or not extended, unless
specifically extended by written agreement of Buyer and Seller, Closing shall be on or before ten
(10) days following the Effective Date. If the date of the Closing is a Saturday, Sunday or legal
holiday, the Closing shall be held on the next business day. Upon payment of the Purchase Price as
provided for in Section 3, on the date of Closing, Seller shall convey good, marketable and
merchantable title to the Membership Interests to Buyer, free and clear of all security interests,
liens, pledges, charging orders, encumbrances or other claims, and Company shall have good,
marketable and merchantable title to the Property as provided for in Section 6, as well as
to the other Project Assets.

18. Intentionally Omitted.

19. Indemnification.

(a) Indemnification by Seller. Seller, for itself and its successors, assigns and
heirs, (collectively, the “Seller Indemnitors”), agrees to reimburse, indemnify and hold Buyer and
its members, managers, employees, agents, attorneys and their respective successors and assigns
harmless from and against:

(i) any and all actions, suits claims proceedings, investigations, demands, assessments,
audits, fines, judgments, losses, deficiencies, liabilities, costs and other expenses (including,
without limitation, reasonable attorneys’ fees and costs) (“Adverse Consequences”) resulting from,
relating to or arising out of (A) any breach of representation or warranty of Seller or Company
under this Agreement; (B) any default in the performance of any agreement or covenant on the part
of Seller or Company under this Agreement; (C) the operation or management of the Company by Seller
or the ownership of any of the Property, or the other Project Assets by Company prior to the date
of Closing; (D) any claim asserted against Seller or the Company to the extent that such claim
relates to an actual or alleged act or omission of Seller, the Company or their respective agents
prior to the date of Closing or an actual or alleged state of facts existing with respect to the
Property or the other Project Assets or the Company prior to the date of Closing; and (E) any
indebtedness, liability, undertaking, performance, commitment or other obligation of Company
arising prior to Closing, except for Liabilities.

(ii) Other than indemnity obligations with respect to tax and environmental matters and
matters covered in Section 7(b), the indemnity obligations of the Seller Indemnitors under
Section 19(a)(i) above shall survive for a period of the later to occur of the applicable
respective period of limitations and thirty-six (36) months following the Closing. The indemnity
obligations of the Seller Indemnitors under Section 19(a)(i) with respect to tax and
environmental matters shall survive until the expiration of the respective statutes of limitations
applicable to such matters. The indemnity obligations of Seller Indemnitors with respect to breach
of Section 7(b) shall be perpetual. Notwithstanding the foregoing, any matters covered by
a Claim Notice (as defined below) delivered within the applicable survival period as specified
above shall survive until all indemnification obligations of the Seller Indemnitors relating to the
Claim Notice shall have been fully paid.

(iii) Assuming the Closing occurs, none of the Seller Indemnitors shall have any right of
contribution from Company with respect to any of their indemnification obligations arising under or
in connection with this Agreement, because Company will then be owned by Buyer, which will be a
beneficiary of any such indemnification obligations.

(b) Indemnification by Buyer. After the date of Closing, Buyer, on behalf of itself
and its successors and assigns, agrees to reimburse, indemnify and hold Seller and their respective
agents, attorneys, successors and assigns harmless from and against any and all Adverse
Consequences incurred in connection with, resulting from, relating to, or arising out of:

(i) the breach of a representation or warranty of Buyer under this Agreement;

(ii) the operation or management of the Company after the date of Closing; and

(iii) any claim asserted against Seller by a third party to the extent that such claim related
to an actual or alleged act or omission of Buyer subsequent to the date of Closing or an actual or
alleged state of facts existing with respect to the Property or the Company.

(c) Survival of Representations and Warranties. Except as otherwise limited herein,
the representations and warranties, obligations, covenants and agreements of Seller, Buyer or the
Company contained herein or in any exhibit or certificate delivered pursuant hereto shall survive
the Closing and continue in full force and effect, regardless of any knowledge or reason to know
which any parties may have had with respect to any breach of representation, warranty, obligation
or covenant or agreement.

(d) Exclusive Remedy. Except as otherwise provided in Sections 5(d) and 20
hereunder and subject to the next succeeding sentence, all claims made by virtue of the
representations, warranties, obligations, covenants and agreements contained in, or otherwise made
in connection with this Agreement shall be made under and subject to the limitations set forth in
this Section 19 which, from and after the Closing, shall be the exclusive remedy for Buyer
or Seller for any breach of this Agreement or other claim arising hereunder. The immediately
preceding sentence shall not limit any right of Buyer or Seller to seek any legal or equitable
relief (including, without limitation, specific performance) as specified in Section 11 in
respect to any breach of any covenant or other agreement herein, or any action or other proceeding
for fraud, intentional misrepresentation or concealment.

20. Brokerage Fees. Seller, Buyer and the Company each represent and warrant to the
other that none of them has used the services of any real estate broker, agent or finder in
connection with this Agreement. In reliance on these representations and warranties, each party
agrees to indemnify and hold the other harmless against any claim by any real estate broker, agent
or finder for a commission or fee arising by reason of the indemnifying party’s breach of its
representation and warranty. The provisions of this Section 20 shall survive the Closing
and the transfer of the Membership Interests.

21. Intentionally Omitted.

22. Intentionally Omitted.

23. Notices. Any notice or demand under this Agreement shall be in writing and sent
by hand-delivery, commercial overnight delivery or facsimile, as follows:

If to Seller or Company:

Triple Net Properties, LLC

1551 N. Tustin Avenue, Suite 200

Santa Ana, CA 92705

Attn: Francene LaPointe

Fax: (714) 667-6860

With a copy to:

Hirschler Fleischer, P.C.

2100 East Cary Street

Richmond, Virginia 23223-7078

Attn: Joseph J. McQuade, Esq.

Fax: (804) 644-0957

If to Buyer:

NNN Healthcare/Office REIT, Inc.

1551 N. Tustin Avenue, Suite 200

Santa Ana, CA 92705

Attn: Scott Peters

Fax: (714) 667-6860

With a copy to:

Hirschler Fleischer, P.C.

2100 East Cary Street

Richmond, Virginia 23223-7078

Attn: Joseph J. McQuade, Esq.

Fax: (804) 644-0957

Any such notice or demand shall be deemed given (i) upon delivery if hand-delivered, (ii) upon
deposit, prepaid, for next business day delivery, if sent by commercial overnight delivery service
or (iii) transmission confirmation if sent by facsimile. Either party by notice to the other in
accordance with the above, may designate a substitute address for such notice or demand and
thereafter such substitute address shall be used for the giving of notice or demand.

24. Miscellaneous.

(a) Intentionally Omitted.

(b) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon Seller, the Company, Buyer and their respective heirs, personal representatives,
successors and permitted assigns. Buyer specifically reserves the right at any time prior to or at
the Closing to assign this Agreement to an entity in which Buyer or its principals have a
controlling interest, in which event such assignee shall be entitled to all benefits of and be
subject to obligations of Buyer hereunder, provided that any such assignment shall not release
Buyer from liability under this Agreement. Seller specifically reserves the right at any time
prior to or at the Closing to assign this Agreement to an entity in which the principals of Seller
have a controlling interest, provided that any such assignment shall not release Seller from
liability under this Agreement. The provisions hereof shall survive the transfer of the Membership
Interests and shall not be merged therein.

(c) Entire Agreement; Amendment. This Agreement (including the Exhibits hereto)
contains the final and entire agreement between the parties hereto and supersedes all prior oral
representations, negotiations and agreements, and neither the parties, nor their agents, shall be
bound by any terms, conditions and representations not herein written or incorporated herein by
reference. This Agreement may not be modified or changed orally, but only by agreement in writing
signed by the party against whom enforcement of any such change is sought.

(d) Governing Law. The interpretation, construction and performance of this Agreement
shall be governed by Indiana law without regard to principles of conflicts of law.

(e) Intentionally Omitted.

(f) Headings. The headings and titles of the sections are inserted as a matter of
convenience and for reference and in no way define, limit or describe the scope of this Agreement
or the intent of any provision thereof.

(g) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

(h) No Waiver. No party hereto shall be deemed to have waived the exercise of any
right which it holds hereunder unless such waiver is made expressly and in writing (and no delay or
omission by any party hereto in exercising any such right shall be deemed a waiver of its future
exercise). No such waiver made as to any instance involving the exercise of any such right shall
be deemed a waiver as to any other such instance, or any other such right.

(i) Severability. No determination by any court, governmental, administrative or
other entity that any provision of this Agreement or any amendment hereof is invalid or
unenforceable in any instance shall affect the validity or enforceability of (i) any other such
provision, or (ii) such provision in any circumstance not controlled by such determination. Each
such provision shall be valid and enforceable to the fullest extent allowed by, and shall be
construed wherever possible as being consistent with, applicable law.

(j) No Partnership. Nothing in the provisions of this Agreement shall be deemed in
any way to create between the parties hereto any relationship of partnership, joint venture or
association, and the parties hereto hereby disclaim the existence of any such relationship.

(k) Rule Against Perpetuities. For the purposes of satisfying the Rule against
Perpetuities, the “Term of this Agreement,” and the last date for completing the Closing shall be
December 31, 2015.

(l) Drafted Jointly. This Agreement was prepared for the benefit of each of the
parties and the language in this Agreement shall not be construed in any way against the drafting
party.

(m) Time Periods. Any and all references in this Agreement to time periods which are
specified by reference to a certain number of days refer to calendar days, unless “business days”
is otherwise expressly provided. Therefore, if (a), the last date by which a Closing is permitted
to occur hereunder, or (b) any date by which a party is required to provide the other party with
notice hereunder, occurs on a Saturday or Sunday or a banking holiday in the jurisdiction where the
Property is located, then and in any of such events, such applicable dates shall be deemed to
occur, for all purposes of this Agreement, on that calendar day which is the next, succeeding day,
which is not a Saturday, Sunday or banking holiday.

(n) No Third-Party Beneficiaries. No person who is not a party to this Agreement (or
a permitted assignee hereunder) shall have any benefit hereunder nor have any third party
beneficiary rights as a result of this Agreement, nor shall any party be entitled to rely on any
actions or inactions to the parties hereof or their agents, all of which are done for the sole
benefit of the parties hereto.

(o) Consent to Venue and Jurisdiction. The parties consent to the jurisdiction and
venue of the courts of any county in the State of Indiana or to the jurisdiction and venue of the
United States District Court for the jurisdiction in which the Property is located in any action or
judicial proceeding brought to enforce, construe or interpret this Agreement.

(p) Force Majeure. In the event that the parties shall be delayed, hindered in or
prevented from the performance of any act or obligation required under this Agreement by reason of
acts of God, vandalism, accident, flood, severe weather, other casualty, riot, insurrection, civil
commotion, sabotage, explosion, war, natural or local emergency, acts or omissions of others or
other reasons of a similar or dissimilar nature not solely the fault of, or under the exclusive
control of, the parties, then performance of such act or obligation shall be excused for the period
of the delay and the period for the performance of any such act or obligation shall be extended for
the period equivalent to the period of such delay.

(q) Waiver of Jury Trial. EACH OF THE PARTIES HEREBY WAIVES ANY RIGHT TO TRIAL BY
JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT,
TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY
COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES
IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY SHALL INSTEAD BE TRIED IN A COURT OF
COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

25. Intentionally Omitted.

26. Tax Reporting and Allocations.

(a) Preparation and Filing of Pre-Closing and Post-Closing Period Tax Returns.

(i) Seller shall prepare or cause to be prepared and file or cause to be filed all tax returns
of the Company for all periods ending on or prior to the Closing date which are filed after the
Closing date. Seller shall permit Buyer to review and comment on each such tax return described in
the preceding sentence prior to filing. The amount of any such pre-Closing taxes shall be
conclusively deemed to be the responsibility of and an indemnification obligation of Seller
Indemnitors hereunder.

(ii) Buyer shall prepare or cause to be prepared and file or cause to be filed all tax returns
of the Company for tax periods which begin after the Closing date, or that begin before the Closing
date and end after the Closing date. The amount of any pre-Closing taxes with respect to such tax
returns shall be conclusively deemed to be the responsibility of and an indemnification obligation
of Seller Indemnitors hereunder.

(b) Cooperation in Filing Tax Returns. Seller and Buyer shall provide one another
such cooperation and information, as and to the extent reasonably requested, in connection with the
filing of any tax return, amended tax return or claim for refund, determining liability for taxes
or a right to refund of taxes, or in conducting any audit, litigation or other proceeding with
respect to taxes. Such cooperation and information shall include providing copies of all relevant
portions of relevant tax returns, together with relevant accompanying schedules and relevant work
papers, relevant documents relating to rulings and other determinations by taxing authorities, and
relevant records concerning the ownership and tax basis of property, which any such party may
possess. Each party will retain all tax returns, schedules, work papers, and all material records
and other documents relating to tax matters, of the Company for the tax period first ending after
the Closing date and for all prior tax periods until the later of either (a) the expiration of the
applicable statute of limitations (and, to the extent notice in provided with respect thereto, any
extensions thereof) for the tax periods to which the tax returns and other documents relate or (b)
eight years following the due date (without extension) for such tax returns.

(c) Allocation of Certain Taxes.

(i) If the Company is permitted but not required under applicable income tax laws to treat the
Closing date as the last day of a taxable period, then the parties shall treat that day as the last
day of a taxable period.

(ii) In the case of taxes arising in a taxable period of the Company that includes, but does
not end on, the Closing date, except as provided in Section 26(c)(iii), the allocation of
such taxes between the pre-Closing period and the post-Closing period shall be made on the basis of
an interim closing of the books as of the end of the Closing date. For the avoidance of doubt, for
purposes of this Section 26, any tax resulting from the transactions contemplated by this
Agreement and any tax resulting from sale by Seller of the Membership Interests is attributable to
the pre-Closing period and therefore to Seller.

(iii) In the case of any taxes that are imposed on a periodic basis and are payable for a
taxable period that includes, but does not end on, the Closing date, the portion of such tax which
relates to the portion of such taxable period ending on the Closing date shall (A) in the case of
any taxes, other than taxes based upon or related to income or receipts, or franchise taxes, be
deemed to be the amount of such tax for the entire taxable period multiplied by a fraction, the
numerator of which is the number of days in the taxable period ending on the Closing date and the
denominator of which is the number of days in the entire taxable period, and (B) in the case of any
tax based upon or related to income or receipts, or franchise taxes, be deemed equal to the amount
which would be payable if the relevant taxable period ended as of the end of the Closing date. All
determinations necessary to give effect to the foregoing allocations shall be made in a manner
consistent with the prior practice of the Company.

(d) Tax Characterization of Payments. Except as otherwise required by applicable law,
the parties shall treat any indemnification payment by the Seller Indemnitors made pursuant to
Section 19 hereof or otherwise hereunder as an adjustment to the Purchase Price for tax purposes.

[SIGNATURE PAGE FOLLOWS]

1

IN WITNESS WHEREOF, the parties have respectively signed and sealed this Agreement as of the
day and year first written above.

	 	 	 	 	 
	SELLER:	 	NNN South Crawford Member, LLC,

	 
	 	 	 	 
	 	 	a Delaware limited liability company

	 
	 	 	 	 
	
 
	 	By:

Its:
	 	Triple Net Properties, LLC,

a Virginia limited liability company

Sole Member and Manager

By: NNN Realty Advisors, Inc., a Delaware corporation

	 	 	 	 	 	 	 
	
 
	 	 	 	Its:
	 	Sole Member
	 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	By:/s/ Andrea R. Biller
	
 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	Name:Andrea R. Biller
	
 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	Title:Executive Vice President
	
 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	COMPANY:

	 	NNN Southpointe, LLC,
	 	

	 	

	 
	 	 	 	 	 	 
	 	 	a Delaware limited liability company
	 	 
	 
	 	 	 	 	 	 
	
 
	 	By:
	 	NNN South Crawford Member, LLC,
	 	

	 
	 	 	 	 	 	 
	 	 	 	 	a Delaware limited liability company

	 
	 	 	 	 	 	 
	
 
	 	Its:
	 	Sole Member
	 	

	 
	 	 	 	 	 	 
	
 
	 	 	 	By:

Its:
	 	Triple Net Properties, LLC,

a Virginia limited liability company

Sole Member and Manager
	 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	By:NNN Realty Advisors, Inc.,

a Delaware corporation

Its:Sole Member
	 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	By:/s/ Andrea R. Biller
	
 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	Name:Andrea R. Biller
	
 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	Title:Executive Vice President
	
 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	BUYER:	 	 	 	NNN Healthcare/Office REIT Holdings, L.P.,

	 
	 	 	 	 	 	 
	
 
	 	 	 	a Delaware limited partnership
	 	

	 
	 	 	 	 	 	 
	
 
	 	 	 	By:

Its:
	 	NNN Healthcare/Office REIT, Inc.,

a Maryland corporation

General Partner

	 	 	 	 	 	 	 
	 	 	

                   By:               /s/ Scott D. Peters   }

                   Name:             Scott D. Peters       }

                   Title:            Chief Executive Officer

By:	 	 	/s/ Scott D. Peters
	 	 	Name:	 	 	Scott D. Peters
	 	 	Title:	 	 	Chief Executive Officer

2

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