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                                                                   EXHIBIT 10.37

                         AMENDMENT AGREEMENT NUMBER TWO
                         TO LOAN AND SECURITY AGREEMENT

        THIS AMENDMENT AGREEMENT NUMBER TWO TO LOAN AND SECURITY AGREEMENT (this
"Amendment"), dated as of November 17, 1999, is entered into between U.S. BANK
NATIONAL ASSOCIATION, FORMERLY KNOWN AS SANTA MONICA BANK ("Bank"), on the one
hand, and INTERVISUAL BOOKS, INC., a California corporation ("IBI"), and FAST
FORWARD MARKETING, INC., a California corporation formerly known as FFM
ACQUISITION CORP. ("FFM"), on the other hand, and amends that certain Loan and
Security Agreement, dated as of May 12, 1999, between Bank and Borrower, as
amended by that certain Amendment Agreement Number One, dated as of September
30, 1999 (collectively, the "Agreement"). IBI and FFM are sometimes individually
and collectively referred to as "Borrower." All terms which are defined in the
Agreement shall have the same definition when used herein unless a different
definition is ascribed to such term under this Amendment, in which case, the
definition contained herein shall govern. This Amendment is entered into in
light of the following facts:

                                    RECITALS

        WHEREAS, Borrower has requested that Bank increase the maximum credit
line under the Agreement from $2,000,000 to $2,500,000;

        WHEREAS, Bank has agreed to honor Borrower's request as set forth in
this Amendment.

        NOW, THEREFORE, the parties agree as follows:

        1. The Agreement shall be amended by deleting Section 1.23 and replacing
it with a new Section 1.23 as follows:

               1.23 "Maximum Credit Line" means Two Million Five Hundred
               Thousand and 00/100 Dollars ($2,500,000.00).

        2. The Agreement shall be amended by deleting Section 1.27 and replacing
it with a new Section 1.27 as follows:

               1.27 "Note" means that certain Amended and Restated Secured
               Promissory Note, dated as of November 17, 1999, in the original
               principal amount of Two Million Five Hundred Thousand and 00/100
               Dollars ($2,500,000.00) executed by Borrower to the order of
               Bank, and any renewals, amendments, restatements or extensions of
               such Secured Promissory Note.

        3. The following are conditions precedent to the effectiveness of this
Amendment:

               3.1 Borrower shall pay to Bank a loan origination fee in the
amount of Five Thousand Dollars ($5,000). The loan origination fee may be paid
by charging Borrower's account with the amount of such fee. The loan origination
fee shall represent an unconditional payment to

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Bank in consideration of Bank's agreement to increase the Maximum Credit Line
pursuant to this Amendment and shall not reduce or be a deposit on account of
the Obligations.

               3.2 Borrower shall execute and deliver to Bank the Amended and
Restated Secured Promissory Note, dated November 17, 1999, in the original
principal amount of $2,500,000, and in the form of Exhibit A attached hereto
(the "New Note"). Upon the Bank's receipt of the New Note, properly executed by
Borrower, Bank shall deliver to Borrower the original Secured Promissory Note,
in the amount of $2,000,000, executed by Borrower to Bank in accordance with the
Agreement, marked "paid by substitution."

        4. This Amendment shall be deemed effective as of the date first
hereinabove written. Except as specifically amended herein, the Agreement shall
remain in full force and effect without any other changes, amendments or
modifications.

               IN WITNESS WHEREOF, Bank and Borrower have executed this
Amendment.

                                    INTERVISUAL BOOKS, INC.,
                                    a California corporation

                                    By     /s/ WALDO H. HUNT
                                       -------------------------------
                                    Title: CEO
                                          ----------------------------

                                    FAST FORWARD MARKETING, INC.,
                                    a California corporation

                                    By     /s/ DAN P. REAVIS
                                       -------------------------------
                                    Title: President
                                          ----------------------------

                                    U.S. BANK NATIONAL ASSOCIATION,
                                    formerly know as SANTA MONICA BANK

                                    By     /s/ MARK MITCHELL
                                       -------------------------------
                                    Title: Vice President
                                          ----------------------------

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                          ACKNOWLEDGMENT BY GUARANTORS

        The undersigned acknowledge that Borrower and Bank are currently
entering into that certain Amendment Agreement Number Two to Loan and Security
Agreement (the "Amendment"). The undersigned hereby consent to the terms of the
Amendment and agree and acknowledge that their respective Continuing Guaranties,
dated as of May 12, 1999, executed by the undersigned in favor of Bank
(collectively, the "Guaranties"), are currently in full force and effect and
that they shall continue to guaranty the Obligations of Borrower owing to Bank
in accordance with the terms of the Guaranties.

                                        /s/ WALDO H. HUNT
                                        ----------------------------------------
                                        Waldo H. Hunt, an individual

                                        /s/ WALDO H. HUNT
                                        ----------------------------------------
                                        Waldo H. Hunt, an individual, as trustee
                                        of the Hunt Family Trust

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                                                                   EXHIBIT 10.38

                              AMENDED AND RESTATED
                             SECURED PROMISSORY NOTE

$2,500,000.00                                                        Dated as of
                                                               November 17, 1999

               1. INDEBTEDNESS. FOR VALUE RECEIVED, the undersigned, INTERVISUAL
BOOKS, INC., a California corporation ("IBI"), and FFM ACQUISITION CORP., a
California corporation ("FFM") (hereinafter IBI and FFM are collectively
referred to as "Maker"), jointly and severally promise to pay to U.S. BANK
NATIONAL ASSOCIATION, FORMERLY KNOWN AS SANTA MONICA BANK (hereinafter referred
to as "Bank"), or order, at 1324 Fifth Street, Santa Monica, California
90406-1075 or at such other place as may be designated in writing by the holder
of this Amended and Restated Secured Promissory Note (hereinafter referred to as
this "Note"), the principal sum of Two Million Five Hundred Thousand and 00/100
Dollars ($2,500,000.00), or such lesser amount as may be outstanding from time
to time, together with interest accrued thereon. This Note evidences revolving
advances made by Bank to Maker pursuant to Sections 2.1 of that certain Loan and
Security Agreement, of even date herewith, between Bank and Maker, as amended
from time to time (the "Loan Agreement").

               2. INTEREST. Commencing on the date hereof, the unpaid principal
balance of this Note shall bear interest at a rate two and one half (2.50)
percentage points in excess of the prime rate of interest (the highest variable
rate of interest, per annum, published daily as the "prime rate" in the Money
Rates Section of the Western Edition of the Wall Street Journal -- hereinafter
referred to as the "Prime Rate"). In the event that such a rate is no longer
published, then the "Prime Rate" shall mean the variable rate of interest, per
annum, most recently announced by Bank at its office in Santa Monica, as its
"prime rate", with the understanding that Bank's "prime rate" is one of its base
rates and serves as a basis upon which effective rates of interest are
calculated for loans making reference thereto and may not be the lowest of
Bank's base rates). In the event that any installment required pursuant to
Section 3 of this Note is not paid when due, or any other default occurs under
the terms of this Note, and without affecting any of Bank's rights and remedies
provided herein, the unpaid principal balance of this Note shall thereafter bear
interest at a rate seven and one half (7.50) percentage points above the Prime
Rate. In the event that the Prime Rate is, from time to time hereafter, changed,
adjustments in the rate of interest payable hereunder shall be made as of 12:01
A.M. on the effective date of the change in the Prime Rate. Interest chargeable
hereunder shall be calculated on the basis of a three hundred sixty (360) day
year for actual days elapsed.

               3. PAYMENT. Principal and interest shall be due and payable on
the dates and in the manner as follows:

                      a. Commencing on the first (1st) day of December, 1999,
and continuing on the same day of each and every calendar month thereafter,
Maker shall make monthly payments of interest accrued on the unpaid principal
balance hereof;

                      b. On the first (1st) day of May, 2000, Maker shall make
payment in full of the unpaid principal balance hereof remaining unpaid on such
date, together with any and all accrued and unpaid interest hereunder.

               4. PREPAYMENT. Maker may prepay all or part of the principal
balance due under this Note, without premium or penalty. With each prepayment
Maker shall also pay the

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interest accrued on the principal amount being prepaid to the date of such
prepayment. So long as not event of default shall have occurred under the Loan
Agreement, Maker may request advances from Bank following the prepayment of any
amounts hereunder.

               5. COMPOUND INTEREST. Interest not paid when due may be added to
the unpaid principal balance hereof and shall thereafter bear interest at the
same rate as principal. All payments hereunder are to be applied first to the
payment of accrued interest and the balance remaining applied to the payment of
principal. All principal and interest due hereunder is payable in lawful money
of the United States of America.

               6. LATE CHARGE. If a payment of principal or interest is ten (10)
days or more late, Maker will be charged five percent (5.00%) of the amount of
such payment. The late charge payable by Maker hereunder is in addition to, and
not in lieu of, all other rights and remedies of Bank.

               7. WAIVERS. Maker, for itself, its legal representatives,
successors and assigns, expressly waives presentment, protest, demand, notice of
dishonor, notice of nonpayment, notice of maturity, notice of protest,
presentment for the purpose of accelerating maturity, and diligence in
collection, and consents that Bank may extend the time for payment or otherwise
modify the terms of payment of any part or the whole of the debt evidenced
hereby. To the fullest extent permitted by law, Maker waives the statute of
limitations in any action brought by Bank in connection with this Note.

               8. ACCELERATION. IT IS EXPRESSLY AGREED THAT UPON THE OCCURRENCE
OF ANY EVENT OF DEFAULT UNDER THE TERMS OR CONDITIONS OF THE LOAN AGREEMENT,
THEN THE UNPAID PRINCIPAL BALANCE OF THIS NOTE, TOGETHER WITH INTEREST ACCRUED
THEREON, SHALL THEREUPON BE IMMEDIATELY DUE AND PAYABLE AT THE OPTION OF THE
HOLDER HEREOF, WITHOUT PRESENTMENT, DEMAND, PROTEST OR NOTICE OF PROTEST OF ANY
KIND, ALL OF WHICH ARE HEREBY EXPRESSLY WAIVED.

               9. ATTORNEYS' FEES AND CHOICE OF LAW. In the event it should
become necessary to employ counsel to collect this Note, Maker agrees to pay the
reasonable attorneys' fees and paralegals' fees (including allocated costs for
in-house legal services provided and attorneys' and paralegals' fees in all
bankruptcy proceedings) and costs of the holder hereof, whether or not suit is
brought. This Note and all transactions hereunder and/or evidenced hereby shall
be governed by, construed under and enforced in accordance with the laws of the
State of California.

               10. PARTICIPATION. Bank reserves the right to sell, assign,
transfer, negotiate, or grant participation interests in all or any part of, or
any interest in Bank's rights and benefits hereunder. In connection therewith,
Bank may disclose all documents and information which Bank now or hereafter may
have relating to Maker.

               11. MODIFICATION. This Note may not be changed, modified, amended
or terminated orally.

               12. RESTATEMENT OF ORIGINAL NOTE. This Note has been issued in
order to amend and restate, and in substitution for, that certain Secured
Promissory Note (the "Original Note"), dated as of May 12, 1999, in the original
principal amount of Two Million and 00/100

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Dollars ($2,000,000.00), executed by Maker to the order of Bank. Such
substitution was made at the request of Maker in order to increase the maximum
credit line evidenced by the Original Note. Upon the execution and delivery by
Maker to Bank of this Note, which replaces and supersedes the Original Note,
Bank shall deliver to Maker the Original Note marked paid by substitution.

               13. WAIVER OF JURY TRIAL. MAKER AND BANK HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION
WITH THIS AGREEMENT OR ANY DEALINGS BETWEEN MAKER AND BANK RELATING TO THIS
AGREEMENT, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. MAKER AND BANK EACH
ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP, THAT EACH OF MAKER AND BANK HAS ALREADY RELIED ON THIS WAIVER IN
ENTERING INTO THIS AGREEMENT AND THAT EACH OF MAKER AND BANK WILL CONTINUE TO
RELY ON THIS WAIVER IN ANY RELATED FUTURE DEALINGS BETWEEN MAKER AND BANK. MAKER
AND BANK FURTHER WARRANT AND REPRESENT THAT THEY EACH KNOWINGLY AND VOLUNTARILY
WAIVE THEIR RESPECTIVE JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL.

                                    INTERVISUAL BOOKS, INC.,
                                    a California corporation

                                    By     /s/ WALDO H. HUNT
                                       -------------------------------
                                    Title: CEO
                                          ----------------------------

                                    FFM ACQUISITION CORP.,
                                    a California corporation

                                    By     /s/ DAN P. REAVIS
                                       -------------------------------
                                    Title: President
                                          ----------------------------

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               U.S. BANK NATIONAL ASSOCIATION, formerly know as SANTA MONICA
BANK, hereby accepts this Note and agrees to the provisions contained in Section
13 of the Note.

                                    U.S. BANK NATIONAL ASSOCIATION,
                                    formerly know as SANTA MONICA BANK

                                    By     /s/ MARK MITCHELL
                                       -------------------------------
                                    Title: Vice President
                                          ----------------------------

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