Document:

Exhibit 10.1

               AMENDMENT NUMBER TWO TO LOAN AND SECURITY AGREEMENT

     This Amendment Number Two to Loan and Security  Agreement  ("Amendment") is
effective  as of February  28,  2005,  by and among,  on the one hand,  ADVANCED
MARKETING  SERVICES,  INC.,  a  Delaware  corporation,   PUBLISHERS  GROUP  WEST
INCORPORATED,  a California  corporation,  and PUBLISHERS GROUP INCORPORATED,  a
California corporation (collectively,  "Borrowers"), and, on the other hand, the
lenders  identified on the signature  pages to the Agreement (as defined  below)
("Lenders"), and WELLS FARGO FOOTHILL, INC., a California corporation ("Agent"),
as the  arranger  and  administrative  agent  for the  Lenders,  in light of the
following:

     A.  Borrowers,  on the one hand,  and Lender and Agent,  on the other hand,
have previously entered into that certain Loan and Security Agreement,  dated as
of April 27, 2004 (the "Agreement").

     B.  Borrowers,  Lenders and Agent desire to, among other things,  amend the
Agreement,  and  provide  for  certain  waivers  and  extensions  in  connection
therewith, as provided for below and on the conditions herein.

     NOW,  THEREFORE,  Borrowers,  Lenders and Agent hereby amend and supplement
the Agreement as follows:

     1. DEFINITIONS.  All initially capitalized terms used herein shall have the
meanings given to them in the Agreement unless specifically defined herein.

     2. OCCURRENCE OF TRIGGERING EVENT.  Borrowers  acknowledge that a Financial
Covenant  Triggering Event occurred on February 3, 2005 due to the fact that the
sum of  Borrowers'  Excess  Availability  plus  Qualified  Cash on such date was
$19,501,897.41, which sum was less than the required amount of $20,000,000. Such
Financial  Covenant  Triggering Event shall be rescinded  immediately  following
Agent's receipt of a Compliance  Certificate for the period ending September 30,
2005, provided that such Compliance  Certificate evidences Borrowers' compliance
with all requirements set forth therein and, provided,  further, that no Default
or Event of Default has occurred prior to such rescission date.

     3. WAIVER. Borrowers have requested that Lenders and Agent waive Borrowers'
violation of Section 7.18(a) of the Agreement, namely, pursuant to such Section,
Borrowers  were required to attain EBITDA in a minimum  amount of $4,172,000 for
the 9 month period ending  December 31, 2004,  with Borrowers  failing to attain
such amount due to the fact that their EBITDA for such 9 month period was a loss
of $3,266,000.

     Lenders and Agent hereby grant such request and waive such violation.  Such
waiver  is  limited  precisely  as  written  and shall not be deemed to be (a) a
waiver or  modification  of any other term or condition of the  Agreement or (b)
prejudice any other rights or remedies  which Lenders or Agent may now or in the
future have under or in connection with the Agreement.
<PAGE>
     4. EXTENSIONS.

          (a)  Pursuant  to  Section  6.3(b) of the  Agreement,  Borrowers  were
required to deliver to Agent (with  copies to each  Lender),  by June 30,  2004,
certain financial  statements and compliance  certificates for Borrowers' fiscal
year ending  March 31,  2004.  At  Borrower's  request,  such  deadline has been
previously   extended  by  Agent  and  Lenders   through   February   28,  2005.
Contemporaneously  herewith,  Borrowers  have requested  additional  time beyond
February 28, 2005 in which to satisfy the  requirements  of such  Section.  With
respect to same, Agent and Lenders hereby agree that Borrowers will have through
June 30,  2005 in which to  satisfy  all of the  requirements  of such  Section.
Borrowers  acknowledge  and agree  that their  failure  to  satisfy  all of such
requirements  prior to or on June 30, 2005 shall  constitute an Event of Default
under the Agreement.

          (b) In connection with Borrowers' fiscal year commencing April 1, 2005
and ending March 31, 2006, Borrowers are required, pursuant to Section 6.3(c) of
the  Agreement,  to deliver to Agent (with  copies to each  Lender),  as soon as
available,  but in any event  within 30 days  prior to the start of such  fiscal
year,  copies  of  certain  Projections  of  Borrowers.  As of the  date of this
Amendment,  Borrowers have requested  additional  time through April 30, 2005 in
which to deliver  such  Projections.  With respect to same and as of the date of
this Amendment,  Agent and Lenders hereby agree that Borrowers will have through
April 30,  2005 in which to satisfy  all of the  requirements  of such  Section.
Borrowers  acknowledge  and agree  that their  failure  to  satisfy  all of such
requirements  prior to or on April 30, 2005 shall constitute an Event of Default
under the Agreement.

     The extensions  set forth herein shall be limited  precisely as written and
shall  not be deemed to be (a) a waiver  or  modification  of any other  term or
condition of the Agreement or (b)  prejudice any other rights or remedies  which
Agent or Lenders may now or in the future have under or in  connection  with the
Agreement.

     5. AMENDMENT.

     Section  7.18(a) of the  Agreement  is hereby  amended and  restated in its
entirety to read as follows:

          (a) Following the  occurrence  of the  Financial  Covenant  Triggering
Event, fail to maintain or achieve:

               (i) Minimum EBITDA. EBITDA,  measured on a quarterly basis, of at
least the required  amount set forth in the following  table for the  applicable
period set forth opposite thereto:
<PAGE>
              Applicable Period               Applicable Amount
      -------------------------------- --------------------------------
           For the 3 month period               ($12,839,000)
            ending March 31, 2005
      -------------------------------- --------------------------------
              To be determined.*              To be determined.*

      -------------------------------- --------------------------------

*    Beyond  March  31,  2005,   Borrowers  and  Agent  agree  that  "Applicable
Period(s)" and "Applicable  Amount(s)"  shall be determined by Agent in its sole
discretion  based upon,  among other things,  the Projections to be delivered to
Agent  (pursuant to Section 6.3 of the Agreement)  prior to the  commencement of
Parent's fiscal year ending March 31, 2006,  with  Borrowers,  Lenders and Agent
agreeing that Borrowers  shall deliver such  Projections no later than April 30,
2005  notwithstanding  any  contrary  deadline  set forth in Section  6.3 of the
Agreement.  Within 14 days of Agent's receipt of such  Projections,  Agent shall
advise Borrowers in writing of such future  Applicable  Period(s) and Applicable
Amount(s).  Borrowers  agree that their failure to deliver such  Projections  by
such deadline shall constitute and Event of Default under the Agreement.

     6.  REPRESENTATIONS  AND WARRANTIES.  Borrowers hereby affirm to Lender and
Agent that all of Borrowers'  representations  and  warranties  set forth in the
Agreement are true, complete and accurate in all respects as of the date hereof.

     7. NO DEFAULTS.  Borrowers  hereby affirm to Lenders and Agent that,  other
than  those  matters  described  in  Section 3 above,  no Event of  Default  has
occurred and is continuing as of the date hereof.

     8. CONDITION  PRECEDENT.  The  effectiveness of this Amendment is expressly
conditioned upon receipt by Agent of a fully executed copy of this Amendment.

     9. COSTS AND EXPENSES. Borrowers shall pay to Agent all of the Lenders' and
Agents'  out-of-pocket costs and expenses  (including,  without limitation,  the
fees and expenses of its counsel,  which  counsel may include any local  counsel
deemed necessary,  search fees, filing and recording fees,  documentation  fees,
appraisal fees, travel expenses,  and other fees) arising in connection with the
preparation,   execution,  and  delivery  of  this  Amendment  and  all  related
documents.

     10.  LIMITED  EFFECT.  In the  event of a  conflict  between  the terms and
provisions of this Amendment and the terms and provisions of the Agreement,  the
terms and provisions of this Amendment shall govern. In all other respects,  the
Agreement,  as amended and supplemented  hereby,  shall remain in full force and
effect.

     11.  COUNTERPARTS;  EFFECTIVENESS.  This  Amendment  may be executed in any
number of counterparts and by different parties on separate  counterparts,  each
of which when so executed and delivered  shall be deemed to be an original.  All
such  counterparts,  taken  together,  shall  constitute  but one  and the  same
<PAGE>
Amendment.  This  Amendment  shall  become  effective  upon the  execution  of a
counterpart of this Amendment by each of the parties hereto.

     IN WITNESS  WHEREOF,  the parties  hereto have executed  this  Amendment on
March 4, 2005.

                                        WELLS FARGO FOOTHILL, INC.,
                                        a California corporation, as Agent and a
                                        Lender

                                        By:     /s/ Daniel Whitwer
                                           -------------------------------------
                                        Title: Vice President

                                        ADVANCED MARKETING SERVICES, INC., a
                                        Delaware corporation

                                        By:     /s/ Curtis R. Smith
                                           -------------------------------------
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                        PUBLISHERS GROUP WEST INCORPORATED, a
                                        California corporation

                                        By:     /s/ Curtis R. Smith
                                           -------------------------------------
                                        Title: Chief Financial Officer

                                        PUBLISHERS GROUP INCORPORATED, a
                                        California corporation

                                        By:     /s/ Curtis R. Smith
                                           -------------------------------------
                                        Title: Chief Financial OfficerExhibit 10.2

               AMENDMENT NUMBER ONE TO LOAN AND SECURITY AGREEMENT

     This Amendment Number One to Loan and Security  Agreement  ("Amendment") is
entered  into as of  October 8, 2004,  by and among,  on the one hand,  ADVANCED
MARKETING  SERVICES,  INC.,  a  Delaware  corporation,   PUBLISHERS  GROUP  WEST
INCORPORATED,  a California  corporation,  and PUBLISHERS GROUP INCORPORATED,  a
California corporation (collectively,  "Borrowers"), and, on the other hand, the
lenders  identified on the signature  pages to the Agreement (as defined  below)
("Lenders"), and WELLS FARGO FOOTHILL, INC., a California corporation ("Agent"),
as the  arranger  and  administrative  agent  for the  Lenders,  in light of the
following:

     A. Borrowers and the Lender Group have previously entered into that certain
Loan and Security Agreement, dated as of April 27, 2004 (the "Agreement").

     B. Borrowers and the Lender Group desire to amend the Agreement as provided
for and on the conditions herein.

     NOW, THEREFORE,  Borrowers and the Lender Group hereby amend and supplement
the Agreement as follows:

     1.  DEFINITIONS.  All initially  capitalized  terms used in this  Amendment
shall  have the  meanings  given to them in the  Agreement  unless  specifically
defined herein.

     2. AMENDMENTS.

          (a)  Section  6.3(a)(i)  of the  Agreement  is hereby  amended  in its
entirety to read as follows:

               (i) an unaudited consolidated and consolidating balance sheet and
income statement covering Parent's and its Subsidiaries'  operations during such
period,  together with a statement of all Intercompany  Advances for such fiscal
month, and

          (b) A new Section 6.3(i) is added to the Agreement as follows:

               (i) as soon as  available,  but in any event within 45 days after
the end of each of Parent's fiscal  quarters,  a statement of cash flow covering
Parent's and its Subsidiaries' operations during such period.

          (c) Section 7.18(a) of the Agreement is hereby amended in its entirety
to read as follows:

               (a) Following the occurrence of the Financial Covenant Triggering
Event, fail to maintain or achieve:
<PAGE>
               (i) Minimum EBITDA. EBITDA,  measured on a quarterly basis, of at
least the required  amount set forth in the following  table for the  applicable
period set forth opposite thereto:

---------------------------------------  ---------------------------------------
          Applicable Period                        Applicable Amount
---------------------------------------  ---------------------------------------
       For the 3 month period                         ($3,700,000)
        ending June 30, 2004
---------------------------------------   --------------------------------------
       For the 6 month period                        $(13,800,000)
     ending September 30, 2004
---------------------------------------  ---------------------------------------
       For the 9 month period                          $4,172,000
      ending December 31, 2005
---------------------------------------  ---------------------------------------
       For the 12 month period                         $3,967,000
        ending March 31, 2005
---------------------------------------  ---------------------------------------

For the trailing 12 month period ending  The "Applicable Amount(s)" for such
on the last day of each fiscal  quarter  future periods shall be determined by
of Administrative Borrower thereafter    Agent in its sole discretion based
                                         upon, among other things, the
                                         Projections to be delivered to Agent
                                         (pursuant to Section 6.3(c) of the
                                         Agreement) prior to the commencement
                                         of Parent's 2006 fiscal year. Within
                                         30 days of Agent's receipt of such
                                         Projections, Agent shall advise
                                         Borrowers in writing of such future
                                         Applicable Amount(s).
---------------------------------------  ---------------------------------------

     3.  REPRESENTATIONS  AND WARRANTIES.  Borrowers hereby affirm to the Lender
Group  all  of  Borrowers'  representations  and  warranties  set  forth  in the
Agreement are true, complete and accurate in all respects as of the date hereof.

     4. NO DEFAULTS.  Borrowers  hereby affirm to the Lender Group that no Event
of Default has occurred and is continuing as of the date hereof.

     5. CONDITION  PRECEDENT.  The  effectiveness of this Amendment is expressly
conditioned  upon:  (i) the  receipt by Agent of a fully  executed  copy of this
Amendment;  and (ii)  payment to Agent,  for the benefit of the  Lenders,  of an
amendment fee of $10,000,  which fee will be charged to Borrowers'  Loan Account
pursuant to Section 2.6(d) of the Agreement.

     6.  COSTS AND  EXPENSES.  Borrowers  shall  pay to Agent all of the  Lender
Group's  out-of-pocket costs and expenses  (including,  without limitation,  the
fees and expenses of its counsel,  which  counsel may include any local  counsel
deemed necessary,  search fees, filing and recording fees,  documentation  fees,
appraisal fees, travel expenses,  and other fees) arising in connection with the
<PAGE>
preparation,   execution,  and  delivery  of  this  Amendment  and  all  related
documents.

     7.  LIMITED  EFFECT.  In the  event of a  conflict  between  the  terms and
provisions of this Amendment and the terms and provisions of the Agreement,  the
terms and provisions of this Amendment shall govern. In all other respects,  the
Agreement,  as amended and supplemented  hereby,  shall remain in full force and
effect.

     8.  COUNTERPARTS;  EFFECTIVENESS.  This  Amendment  may be  executed in any
number of counterparts and by different parties on separate  counterparts,  each
of which when so executed and delivered  shall be deemed to be an original.  All
such  counterparts,  taken  together,  shall  constitute  but one  and the  same
Amendment.  This  Amendment  shall  become  effective  upon the  execution  of a
counterpart of this Amendment by each of the parties hereto.

     IN WITNESS  WHEREOF,  the parties hereto have executed this Amendment as of
the date first set forth above.

                                       WELLS FARGO FOOTHILL, INC.,
                                       a California corporation, as Agent and a
                                       Lender

                                       By: /s/ Daniel Whitwer
                                           -------------------------------------
                                       Title: Vice President

                                       ADVANCED MARKETING SERVICES, INC., a
                                       Delaware corporation

                                       By: /s/ Bruce C. Myers
                                           -------------------------------------
                                       Title: Executive Vice President and
                                              Chief Financial Officer

                                       PUBLISHERS GROUP WEST INCORPORATED, a
                                       California corporation

                                       By: /s/ Bruce C. Myers
                                           -------------------------------------
                                       Title: Chief Financial Officer

                                       PUBLISHERS GROUP INCORPORATED, a
                                       California corporation

                                       By: /s/ Bruce C. Myers
                                           -------------------------------------
                                       Title: Chief Financial Officer

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