EXHIBIT 99 FOOTHILL CAPITAL CORPORATION December 30, 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: Waiver of Event 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 Borrower is not in compliance with Section 6.13(b) of the Agreement on November 24, 1996, because Borrower failed to maintain the minimum Consolidated Tangible Net Worth required therein at all times (the "Non-Compliance Items"). Borrower has asked Lender to waive any Event of Default that may have been occasioned by the Non-Compliance Item. Lender hereby waives any Event of Default that may have been occasioned solely by the Non-Compliance Item. The waiver of the Non-Compliance Item is limited to the specifics hereof, shall not apply with respect to any facts or occurrences other than those on which the 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: Assistant Vice President December 30, 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 December 30, 1996, is now effective. Sincerely /s/ Anthony Aloi Anthony Aloi Assistant Vice President CC: Donna Compagna, CIT Alan Ghole, FINOVA Capital Corporation Kevin Vaughan, Textron Financial Corporation Britt Terrell, Coast Business Credit