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EXHIBIT 10.1
[CITY NATIONAL BANK LETTERHEAD]
WAIVER OF DEFAULT UNDER CREDIT AGREEMENT
May 13, 1997
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Intervisual Books, Inc.
0000 Xxxxx Xxxx Xxxx. #0000
Xxxxx Xxxxxx, XX 00000
Attention: Xxxx X. Xxxxxxxxx, Controller
RE: WAIVER OF DEFAULT UNDER CREDIT AGREEMENT DATED AS OF MAY 31, 1994,
AS AMENDED ("CREDIT AGREEMENT") EXECUTED BETWEEN INTERVISUAL BOOKS,
INC., A CALIFORNIA CORPORATION ("BORROWER") AND CITY NATIONAL BANK,
A NATIONAL BANKING ASSOCIATION ("CNB")
Dear Xx. Xxxxxxxxx:
Section 5.5.5 of the Credit Agreement requires that Borrower maintain
cash and marketable securities held at CNB of not less than $2,000,000.00 at
all times. Based on Xxxxxxxx's financial statement for the period ending March
31, 1997, Xxxxxxxx has not met this covenant.
Under the terms of the Credit Agreement, Xxxxxxxx's failure to comply
with or observe the provisions of the foregoing Section constitute an Event of
Default. You have requested that CNB waive the provisions of such Section in
connection with such Event of Default.
Subject to the terms and conditions hereof, CNB hereby waives the
specific Events of Default set forth in the above paragraph only for the quarter
ending March 31, 1997. This waiver shall be effective solely with respect to
the matters described above and shall not be deemed or construed to be a waiver
of any other term or condition of the Credit Agreement or any other term or
condition of any of the instruments or agreements referred to therein or
executed in connection therewith, or to prejudice any right or rights that CNB
may now have or may have in the future under or in connection with the Credit
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Xxxx X. Xxxxxxxxx, Controller
Intervisual Books, Inc.
May 13, 1997
Page 2
Agreement or the instruments or agreements referred to therein or otherwise
executed in connection therewith with respect to any other Potential Events of
Default and Events of Default that may exist or arise. Except as expressly
waived herein, all of the terms and conditions of the Credit Agreement shall
remain unchanged and in full force and effect. Capitalized terms not defined
herein shall have the respective meanings given them in the Credit Agreement.
This waiver shall become effective only upon receipt of CNB of
counterparts hereof acknowledged by you.
Very truly yours,
CITY NATIONAL BANK, a
national banking association
By: /s/ XXXXXXX XXXXXXX
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Xxxxxxx Xxxxxxx,
Senior Vice President/Manager
By: /s/ XXXX XXXXX
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Xxxx Xxxxx, Vice President
ACKNOWLEDGED BY BORROWER:
INTERVISUAL BOOKS, INC., a
California corporation
By: /s/ XXXX X. XXXXXXXXX
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Xxxx X. Xxxxxxxxx, Controller
Date: May 13, 1997
RECEIVED BY CITY NATIONAL BANK:
Date:
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By:
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Xxxx Xxxxx, Vice President
