EXHIBIT 99 FOOTHILL CAPITAL CORPORATION October 24, 1996 Town & Country Corporation Town & Country Fine Jewelry Group, Inc. Gold Lance, Inc. L.G. Balfour Company, Inc. 25 Union Street Chelsea, Massachusetts 02150 Re: Waivers of Events of Default with respect to the "Non-Compliance Items" as defined below Gentlemen: Reference is made to the Loan Agreement dated as of July 3, 1996 (as the same heretofore may have been amended or modified, the "Agreement") between Foothill Capital Corporation ("Lender") and Town & Country Corporation, Town & Country Fine Jewelry Group, Inc., Gold Lance, Inc., and L.G. Balfour Company, Inc. (collectively, "Borrower"). Terms used herein and not otherwise defined herein shall have the meaning ascribed thereto in the Agreement. Borrower has advised Lender that: 1. Borrower is not in compliance with Section 6.13(a) of the Agreement on August 25, 1996, because Borrower failed to maintain the minimum ratio of Consolidated Current Assets divided by Consolidated Current Liabilities required therein at all times; 2. Borrower is not in compliance with Section 6.13(b) of the Agreement on August 25, 1996, because Borrower failed to maintain the minimum Consolidated Tangible Net Worth required therein at all times; 3. Borrower is not in compliance with Section 6.13(c) of the Agreement on August 25, 1996, because Borrower failed to maintain the minimum Working Capital amount required therein at all times; 4. Borrower is not in compliance with Section 6.13(d) of the Agreement on August 25, 1996, because Borrower failed to maintain the minimum Consolidated Interest Coverage Ratio required therein for the twelve (12) month period ended August 25, 1996; and 5. Borrower is not in compliance with Section 6.13(f) of the Agreement on August 25, 1996, because Borrower failed to maintain a ratio of Consolidated Total Senior Liabilities divided by Consolidated Tangible Capital Base not more than the ratio required therein at all times; (the foregoing items 1, 2, 3, 4, and 5 are referred to herein, collectively, as the "Non-Compliance Items"). Borrower has asked Lender to waive any Event of Default that may have been occasioned by any of the Non-Compliance Items. Lender hereby waives any Event of Default that may have been occasioned solely by any of the Non-Compliance Items. The waiver of the Non-Compliance Items is limited to the specifics hereof, shall not apply with respect to any facts or occurrences other than those on which the applicable Non-Compliance Item is based, shall not excuse future non-compliance with the Agreement (as it may from time to time be amended), including Section 6.13 thereof, and except as expressly set forth herein, shall not operate as a waiver or an amendment of any right, power or remedy of Lender, nor as a consent to any further or other matter, under the Loan Documents. This waiver shall not be effective until Lender advises Borrower in writing that Lender has obtained any consents that Lender may need or require from participants of Lender. Cordially, Foothill Capital Corporation By: /s/Anthony Aloi Name: Anthony Aloi Title: Senior Vice President FOOTHILL October 24, 1996 Mr. Robert Hannon Town & Country Corporation 25 Union Street Chelsea, MA 02150 Dear Bob: This letter should serve as notice that Foothill Capital has received proper consent from our participants and the "Waiver of Event of Default with respect to the Non-Compliance Items" dated October 24, 1996, is now effective. Sincerely /S/ Anthony Aloi Anthony Aloi Assistant Vice President CC: Bruce Hilowitz, CIT Alan Ghole, FINOVA Capital Corporation Kevin Vaughan, Textron Financial Corporation Britt Terrell, Coast Business Credit Foothill Capital Corporation 617-624-4400 / Fax 617-722-9493 60 State Street, Suite 1150, Boston, MA 02109