Document:

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                                                                   EXHIBIT 10.62

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of the 31st
day of December, 2001, by and between INTERVISUAL BOOKS, INC., a California
corporation (the "Company"), and Larry Nusbaum (the "Executive").

     NOW, THEREFORE, in consideration of the promises and the mutual covenants
herein contained, the parties, intending to be legally bound hereby, agree as
follows:

     1.   Employment. The Company hereby agrees to employ Executive, and
Executive hereby agrees to accept such employment with the Company, on the terms
and conditions set forth herein.

     2.   Term. The employment of Executive by the Company as provided in this
Agreement shall commence on January 1, 2002 (the "Start Date"), and end on
December 31, 2003. As a condition precedent to the effectiveness of this
Agreement, Executive shall report for work at the principal executive offices of
the Company on the Start Date and, if requested by the Company, Executive shall
affirm in writing on the Start Date that he has ceased employment with his
current employer.

     3.   Position and Duties. Executive shall serve as Chief Executive Officer
of the Company, or such other position or positions as may be agreed to by the
Executive and the Board of Directors ("Board") and upon execution of this
Agreement, shall be appointed to the Company's Board. Executive shall at all
times perform his duties and obligations faithfully and diligently and shall
devote all his business time and best efforts exclusively to the business of the
Company. Executive shall at all times industriously perform his duties under the
supervision of and report to the Board and shall accept and comply with all
directions from and all policies established from time to time by the Board.
Executive's primary duties shall include, without limitation, responsibility for
the day-to-day management of the Company and such other duties as may from time
to time be prescribed by the Board. Executive shall promote the trade and
business of the Company to the best of his ability and shall not willingly do
anything to the prejudice of the Company's trade or business. Executive shall
not at any time intentionally make any untrue statement regarding the Company
and shall not after the termination of employment by the Company represent
himself as being employed or connected with the Company. Executive shall not
directly or indirectly render any services of a business, commercial or
professional nature to any other person, entity or organization, whether for
compensation or otherwise, without the prior written consent of the Company's
Board of Directors. Executive shall adhere to all of the Company's policies and
procedures applicable to Company's employees generally.

     4.   Place of Performance. In connection with Executive's employment by the
Company and except for required travel on Company business, Executive shall be
based at the principal executive offices of the Company.

<PAGE>
     5.   Compensation and Related Matters.

          (a)  Salary. During the initial term of Executive's employment
hereunder, the Company shall pay to Executive a salary of $150,000.00 per year
from the Start Date through December 31, 2002, unless otherwise increased by the
Board based on performance, as well as additional compensation as provided in
Section 5(b). Thereafter, Executive's salary shall be adjusted annually by the
Board based on performance. Such salary shall be paid in equal semi-monthly
installments (or such shorter intervals as the Company may elect) and shall
accrue from day to day. Such salary shall be subject to any withholding or taxes
the Company is required by law to make or pay.

          (b)  Additional Compensation. In addition to the salary set forth in
section 5(a) hereof, Executive shall receive the additional compensation as set
forth in the table below, based upon the Company's earnings before interest,
taxes, depreciation and amortization ("EBITDA") for the 12 month periods ending
December 31, 2002 and 2003, respectively:

<TABLE>
<CAPTION>

       Calendar Year        EBITDA                         Bonus
       -------------        ------                         -----
       <S>                  <C>                            <C>
       2002                 Less than $1,250,000           None
                            $1,250,000 -- $1,499,999       $62,500
                            $1,500,000 -- $1,749,999       $90,000
                            $1,750,000 -- $1,999,999       $122,500
                            $2,000,000 or more             $160,000

       2003                 Less than $1,750,000           None
                            $1,750,000 -- $1,999,999       $ 87,500
                            $2,000,000 -- $2,249,999       $120,000
                            $2,250,000 -- $2,499,999       $157,500
                            $2,500,000 or more             $200,000
</TABLE>

For purposes of this Agreement, EBITDA shall mean consolidated earnings of the
Company, excluding any cancellation of indebtedness income as it relates to the
compromise of payables owed to the Company's printers, before extraordinary
items, and before interest income or expense, income taxes, depreciation and
amortization as determined under generally accepted accounting principles
consistently applied. The determination of the Company's EBITDA shall be made by
the Company's Board of Directors (excluding the Executive) within 90 days after
December 31, 2002 and December 31, 2003, respectively. Such determination shall
be based on the Company's audited financial statements as presented in its
Annual Report on Form 10-K for the applicable periods. If during the calendar
year as listed above the Executive achieves the levels of profitability, then
the Executive shall receive such remuneration within one-hundred twenty (120)
days of said calendar year for the period listed above.

<PAGE>
          (c)  Vacations. During the term of Executive's employment hereunder,
Executive shall be entitled to four (4) weeks of vacation in each calendar year,
and to compensation with respect to earned but unused vacation days determined
in accordance with the Company's vacation policy in the event of termination.
Executive's vacation shall be scheduled by mutual agreement between the
Executive and the Board. All accrued but unused vacation days shall be carried
over to the following year by the Company.

          (d)  Expenses. During the term of Executive's employment hereunder,
Executive shall be entitled to receive reimbursement for all reasonable
out-of-pocket travel and other expenses (excluding ordinary commuting expenses)
incurred by Executive in performing Executive's services hereunder, provided
that:

               (i)  Each such expenditure is of a nature qualifying it as a
proper business expenditure of the Company and is approved by the Company; and

               (ii) Executive furnishes to the Company adequate records and
other documentary evidence required by the Company for the substantiation of
such expenditures as proper business expenditures of the Company, and Executive
otherwise complies with general Company policies with respect to expense
reimbursement.

Such expenses shall include, but not be limited to, a cellular phone, a beeper
and all related charges.

          (e)  Stock Options. Executive acknowledges that, as additional
compensation for Executive's employment hereunder, Executive shall be granted
non-statutory stock options in accordance with the Stock Option Agreement
attached hereto or Exhibit "A." The terms of such stock options shall be
governed by the provisions of the Stock Option Agreement.

          (f)  Medical and Dental Insurance. During the term of Executive's
employment hereunder, Executive and Executive's family shall be entitled to
participate at the Company's sole expense in any medical and dental insurance
plans from time to time generally applicable to full-time employees of the
Company during the term of Executive's employment hereunder. In the event that
Executive elects not to participate in the Company's insurance plans as
described above, Executive shall receive additional monthly compensation equal
in amount to the monthly insurance premium that would have been paid by the
Company on his behalf.

          (g)  401(k) Plan. During the term of Executive's employment hereunder,
Executive shall be entitled to participate in the Company's 401(k) Plan, or
other similar plans established by the Company, applicable to full-time
employees of the Company. To the extent permissible under the Plan documents,
the Company shall waive the applicable waiting period for purposes of
Executive's immediate eligibility to participate in the Plan.

<PAGE>

          (h)  Moving Expenses. Executive shall be entitled to reimbursement by
the Company, in accordance with the Company's policies, for reasonable and
customary moving expenses actually and reasonably incurred by Executive, but not
to exceed $35,000.00 [OPEN], in connection with moving the Executive and, at the
discretion of the Executive, during his employ, his immediate family, together
with the personal belongings of Executive and Executive's immediate family, from
New York to the Southern California area. Executive also shall be entitled to
reimbursement for any taxes incurred by Executive by reason of the Company's
payment of moving expenses hereunder.

          (i)  Automobile Allowance. During Executive's employment hereunder,
the Company shall pay Executive an automobile allowance in an amount equal to
Executive's monthly automobile lease payment, but not to exceed $600.00 per
month, on or about the last day of each month, provided that Executive maintains
all necessary records as required by the Company and the Internal Revenue
Service.

          (j)  Interim Living Expenses. From the Start Date until the earlier to
occur of: (A) the securing of permanent housing in the Southern California area
for Executive and Executive's immediately family, or (B) June 30, 2002,
Executive shall be entitled to reimbursement by the Company, in accordance with
the Company's policies, for the following expenses actually and reasonably
incurred by Executive:

               (i)  Apartment or housing rental expenses, but not to exceed
$1,800 per month;

               (ii) Furniture rental expenses, but not to exceed $250 per month;

               (iii)Reasonable expenses for family travel between Southern
California and New York; and

               (iv) Reasonable living expenses for which receipts are furnished
by Executive, as agreed to by the Executive and the Company's Board of
Directors.

In addition, the Company shall advance any deposits required by the lessor in
connection with the rental of an apartment, house or furniture under subsections
(i) and (ii) above.

     6.   Termination.

          (a)  Cause. The Company may at any time upon written notice to
Executive terminate this Agreement and Executive's employment hereunder for
Cause pursuant to the provisions of this Section 6(a). Executive shall be given
written notice by the Board of its intention to terminate Executive for Cause,
which notice shall state the acts or omissions that constitute grounds on which
the proposed termination for Cause is

<PAGE>

based. The Board shall permit Executive an opportunity to address the Board or a
committee of three (3) or more directors regarding the grounds on which the
proposed termination for Cause is based. In every case, the good faith judgment
of the Board shall be conclusive as to whether Cause for termination exists.

For purposes of this Agreement, the Company shall have "Cause" to terminate
Executive's employment hereunder upon:

               (i)  The breach by Executive of any material provision or
covenant of this Agreement, and if such breach is susceptible to cure by
Executive, the failure to effect such cure within twenty (20) days after written
notice of such breach is given to the Executive;

               (ii) The willful failure or neglect of Executive to perform
Executive's duties hereunder or the gross negligence of Executive in the
performance of such duties, and if such failure or gross negligence is
susceptible to cure by Executive, the failure to effect such cure by Executive
within twenty (20) days after written notice of such failure or gross negligence
is given to Executive;

               (iii) Except as permitted hereunder, Executive's unexplained and
regular absences from the Company;

               (iv) Executive's use of alcohol or illegal drugs, which use
interferes with the performance of Executive's duties hereunder;

               (v)  Executive's conviction for a crime or for theft,
embezzlement, fraud, misappropriation of funds or any other alleged act of
dishonesty by Executive or Executive's indictment for any other felony or other
crime involving moral turpitude; or

               (vi) Executive's violation of any law or ethical rule relating to
Executive's employment by the Company, including, but not limited to a violation
by Executive of Executive's fiduciary duty of loyalty to the Company which
Executive owes to the Company as an officer and/or director.

In no event shall a "Change in Control" as that term is defined in the Company's
Nonstatutory Stock Option Plan in and of itself constitute Cause for the
termination of Executive's employment under the terms of this Agreement.

          (b)  Death. This Agreement shall terminate automatically upon
Executive's death.

          (c)  Incapacity. If Executive becomes incapacitated during Executive's
employment hereunder, this Agreement shall terminate on the date of
determination by the Board of such incapacity. As used herein, "incapacity"
shall mean any physical or

<PAGE>
mental illness or disability, or both, which renders Executive incapable of
performing substantially all of his services hereunder for a period of sixty
(60) days or more in the aggregate during any calendar year, and which at any
time after such sixty (60) days the Company's Board shall determine continues to
render Executive incapable of performing substantially all of the services
hereunder. Any reasonable determination made in good faith by the Board shall be
conclusive and binding upon Executive.

          (d)  Without Cause. The Company may terminate this Agreement at any
time without Cause, upon sixty (60) days written notification subject to the
conditions stated in Section 7(b) herein.

          (e)  Resignation. Executive may terminate this Agreement at any time
upon one hundred and twenty (120) days written notification delivered by
Executive to the Company. Notwithstanding the above, Executive may immediately
terminate this Agreement at any time upon the occurrence of any of the following
events: (i) the Company shall become insolvent or shall make an assignment for
the benefit of creditors, or if any petition is filed by or against the Company
under any provision of any state or federal law or statute alleging that the
Company is insolvent or unable to pay debts as they mature; (ii) if an
involuntary petition shall be filed against the Company seeking bankruptcy or
reorganization, and such petition or complaint shall not have been dismissed
within sixty (60) days of the filing thereof; (iii) the Company fails to pay
compensation or any other amount due to Executive hereunder within ten (10)
business days of the date the amount is due and payable; or (iv) the Company
breaches any material term, covenant, or condition of this Agreement.

          (f)  Notice of Termination. Any termination of Executive's employment
by the Company or by Executive (other than termination pursuant to Subsection
6(b) above) shall be communicated by a written Notice of Termination to the
other party hereto. For purposes of this Agreement, a "Notice of Termination"
means a notice which: (i) indicates the specific termination provision in this
Agreement relied upon; (ii) sets forth the circumstances which provide a basis
for termination of Executive's employment under the provisions so indicated; and
(iii) if the termination date is other than the date of receipt of such notice,
specifies the termination date of this Agreement (which date shall not be more
than thirty (30) days after the giving of such notice except as otherwise set
forth herein).

          (g)  Date of Termination. "Date of Termination" shall mean the date of
death, the date of receipt of the Notice of Termination or the date specified
therein, as the case may be.

          (h)  Arbitration Rights. Nothing contained in this Section 6 shall
affect the Company and Executive's right and obligation to arbitrate disputes as
provided in Section 11 of this Agreement.

<PAGE>

     7.   Obligations of the Company Upon Termination.

          (a)  Termination. Upon termination of this Agreement pursuant to
Sections 6(a), (b), (c) or (e), the Company shall have no further obligation to
Executive, except that Executive shall receive the following within thirty (30)
days of Executive's Date of Termination: (i) the portion of Executive's salary
as set forth in Section 5(a)(hereinafter referred to as "Minimum Payments")
which has been earned up to the Date of Termination; (ii) compensation for any
accrued and unused vacation up to the Date of Termination; (iii) the right to
participate in the Company's health insurance program under COBRA as of the Date
of Termination; (iv) all additional compensation as defined in Section 5(b)
earned for either or both calendar years (2002 or 2003) prior to the Date of
Termination; (v) reimbursement of all business expenses incurred up to the Date
of Termination subject to the requirements set forth in Section 5(d); (vi) all
stock options earned, accrued and/or vested pursuant to Section 5(e) up to the
Date of Termination; and (vii) any outstanding matching contributions earned by
Executive under the Company's 401(k) Plan as of the Date of Termination.

          (b)  Termination Without Cause. Upon termination of this Agreement
pursuant to Section 6(d), the Executive shall be entitled to all benefits
described in Section 7(a) above in addition to the following: (i) if the Date of
Termination is between January 1, 2002 and December 31, 2002, an amount equal to
the remainder of Executive's salary for that period, plus an additional calendar
year of salary calculated at Executive's then current salary rate; and (ii) if
the date of termination is between January 1, 2003 and December 31, 2003, a sum
equal to the remainder of Executive's then current salary for the year.

     8.   Proprietary Information.

          (a)  Definition. Executive hereby acknowledges that Executive
possesses and may make use of, acquire, create, develop or add to certain
confidential and/or proprietary information regarding the Company and its
business (whether in existence prior to, as of or after the date hereof,
collectively, "Proprietary Information"), which Proprietary Information shall
include, without limitation, all of the following materials and information
(whether or not reduced to writing and whether or not protected by patent or
copyright): trade secrets, inventions, processes, formulae, programs, technical
data, "know-how," procedures, manuals, confidential reports and communications,
marketing methods, product sales or cost information, new product ideas or
improvements, new packaging ideas or improvements, research and development
programs, identities or lists of suppliers, vendors or customers, financial
information and financial projections of the Company of any nature whatsoever,
or any other confidential or proprietary information relating to the Company
and/or its business. The term "Proprietary Information" shall not include any
information that: (i) at the time of disclosure is generally available to and
known by the public (other than as a result of its disclosure by Executive);
(ii) was available to Executive prior to disclosure by the

<PAGE>

Company, provided that the person who was the source of such information was not
known by Executive to be subject to an obligation of confidentiality to the
Company; or (iii) becomes available to Executive on a non-confidential basis
from a person other than the Company or its representatives, provided that the
source of such information was not known by Executive to be subject to an
obligation of confidentiality to the Company.

          (b)  Nondisclosure. During the term of this Agreement and thereafter,
Executive shall not, without the prior express written consent of the Board,
disclose or make any use of any Proprietary Information except as may be
required in the course of the performance of Executive's services under this
Agreement.

          (c)  Ownership. Executive acknowledges and agrees that all right,
title and interest in and to any Proprietary Information shall be and shall
remain the exclusive property of the Company. Without limiting the foregoing,
Executive shall assign to the Company any and all right, title or interest which
Executive may have in all Proprietary Information made, developed or conceived
of in whole or in part by Executive during his employment hereunder.

          [(d) Agreement Not to Solicit Customers. To protect the Proprietary
Information and trade secrets of the Company, Executive agrees, during the term
of this Agreement and for a period of one year after termination of this
Agreement, not to, directly or indirectly, either on Executive's own behalf or
on behalf of any other person or entity, attempt to intentionally persuade any
customer of the Company to cease to do business or to reduce the amount of
business which any customer of the Company has customarily done or contemplates
doing with the Company. Executive agrees that the covenants contained in this
paragraph are reasonable and desirable. [OPEN]]

          [(e) Agreement Not to Solicit Employees. To protect the Proprietary
Information and trade secrets of the Company, Executive agrees, during the term
of this Agreement and for a period of one year after termination of this
Agreement, not to, directly or indirectly, either on Executive's own behalf or
on behalf of any other person or entity, solicit or employ any person who is an
employee of the Company. Executive agrees that the covenants contained in this
paragraph are reasonable and desirable. [OPEN]]

     9.   Protection of Property. All records, files, manuals, documents,
specifications, lists of customers, banks, forms, materials, supplies, computer
programs and other materials furnished to the Executive by the Company, used on
its behalf or generated or obtained during the course of the performance of the
Executive's services hereunder, shall be and remain the property of the Company.
Executive shall be a holder thereof for the sole use and benefit of the Company,
and shall safely keep and preserve such property, except as consumed in the
normal business operations of the Company. Executive acknowledges that this
property is not readily accessible to the Company's competitors. Upon
termination of Executive's employment with the Company for any reason, Executive
shall immediately deliver to the Company, or its authorized

<PAGE>
representative, all such property, including all copies, remaining in
Executive's possession or control.

     10.  Specific Performance. In the event of a breach by Executive of any of
the provisions of Sections 8 or 9, the Company, in addition to all other rights
and remedies and notwithstanding the provisions of Section 11 hereof, may apply
to any court of law or equity of competent jurisdiction for specific performance
and/or injunctive or other relief in order to enforce or prevent any violations
of the provisions thereof.

     11.  Arbitration. If any legally actionable dispute arises which cannot be
resolved by mutual discussion between the parties, the parties hereto agree to
resolve that dispute by binding arbitration before an arbitrator experienced in
employment law. Such arbitration shall be conducted in accordance with the rules
applicable to employment disputes under the American Arbitration Association and
the law of the State of California. Costs for the arbitration shall be shared
equally between the parties unless otherwise required by law. The parties hereto
agree that this agreement to arbitrate includes any disputes that the Company
may have against Executive or that Executive may have against the Company and/or
its related entities and/or employees arising out of or relating to Executive's
employment with the Company, this Agreement, or Executive's termination of
employment, including any claims of discrimination or harassment in violation of
any federal or state law and any other aspect of Executive's compensation,
training, employment or termination. The parties further agree that arbitration
in accordance with this Section 11 shall be the exclusive and binding remedy for
any such disputes and will be used instead of any court action, which is hereby
expressly waived, except for requests by either party for temporary or
preliminary injunctive relief pending arbitration in accordance with applicable
law or an administrative claim with an administrative agency. The parties agree
that the arbitration provided for in this Section 11 shall be conducted in Santa
Monica, California, unless otherwise mutually agreed to the contrary. The
conduct and results of the arbitration will be kept confidential by all parties.
This Section 11 shall survive the termination of this Agreement and cannot be
terminated or amended unless expressly changed in a writing signed by each party
hereto.

     12.  Additional Covenants.

          (a)  Executive hereby represents and warrants that the execution,
delivery and performance of this Agreement by Executive does not (i) breach, or
result in a default under, any agreement to which Executive is a party or by
which Executive is bound, (ii) breach or otherwise violate any order, writ,
judgment, order or decree binding upon Executive, or (iii) violate any
applicable law or regulation.

          (b)  Upon Executive's cessation of employment with the Company for any
reason whatsoever, Executive shall thereupon be deemed to have resigned from the
Board of Directors of the Company, every parent or subsidiary of the Company on
which he is then serving as a director, and any other company on which Executive
is then

<PAGE>

serving as a director at the request of the Company, in each case effective as
of the date of cessation of employment.

     13.  Representation by Counsel. Executive acknowledges that he has been
represented by legal counsel in connection with this Agreement and has consulted
with such legal counsel. The Company shall reimburse Executive for all
reasonable attorneys' fees and expenses actually incurred by Executive, but not
to exceed $2,500.00, in connection with the negotiation and preparation of this
Agreement.

     14.  Reimbursement of Expenses. Executive shall furnish to the Company
adequate records and other documentary evidence as requested by the Company to
substantiate any costs or expenses for which reimbursement is sought hereunder.

     15.  Assignment; Successors-in-Interest. This Agreement is personal to the
Executive and is not assignable by the Executive otherwise than by will or the
laws of descent and distribution without the prior written consent of the
Company's Board of Directors. This Agreement shall inure to the benefit of and
be binding upon the Company and its successors and assigns.

     16.  Notice. Any notice, request and other communication between the
parties with respect to this Agreement shall be in writing, shall be addressed
to the receiving party's address set forth below or to such other address as a
party may designate by notice thereunder, and shall be (i) delivered by hand;
(ii) telexed, telecopied or made by facsimile transmission; (iii) sent by
overnight courier; or (iv) sent by certified or registered mail, return receipt
requested, postage prepaid:

        If to Executive:     Executive's home address on file with the Company
        If to Company:       Intervisual Books, Inc.
                             2716 Ocean Park Boulevard, #2020
                             Santa Monica, California 90405
                             Attention: Chairman of the Board

     17.  Entire Agreement. This Agreement contains the entire agreement of the
parties hereto with respect to the subject matter hereof and supersedes any and
all other agreements, either oral or in writing, between the parties hereto with
respect to the employment of Executive by the Company. Each party to this
Agreement acknowledges that no representations, inducements, promises or
agreements, written, oral or otherwise, have been made by any party, or anyone
acting on behalf of any party, which are not embodied herein, and that no other
agreement, statement or promise not contained in this Agreement shall be valid
or binding.

     18.  Amendment; Waiver; Governing Law. No provisions of this Agreement may
be modified, waived or discharged unless such waiver, modification or discharge
is agreed to in a writing signed by Executive and by such officer of the Company
as may be specifically designated by the Board. No waiver by either party hereto
at any time of any

<PAGE>
breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
California.

     19.  Validity. If any provision of this Agreement is rendered invalid or
unenforceable by the enactment of any applicable statute or ordinance or by any
regulations duly promulgated or is made or declared unenforceable by any court
of competent jurisdiction, the remainder of this Agreement shall remain in full
force and effect.

     20.  Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same instrument.

     21.  Attorneys' Fees. In the event of any dispute arising out of the
subject matter of this Agreement, the prevailing party shall be entitled to
recover its costs and expenses (including reasonable attorneys' fees) incurred
in arbitrating or otherwise resolving such dispute.

     22.  Withholding of Taxes; Tax Reporting. The Company may withhold from any
amounts payable under this Agreement all such Federal, state, city and other
taxes, and may file with appropriate governmental authorities all such
information, returns or other reports with respect to the tax consequences of
any amounts payable under this Agreement, as may, in its reasonable judgment, be
required by law.

     23.  Termination. This Agreement shall terminate in the event $1,600,000 is
not released to the Company at the Second Closing (as defined in Series A
Preferred Stock Purchase Agreement between Intervisual Partners, LLC and the
Company dated December 31, 2001 (the "Purchase Agreement")) as provided for in
the Purchase Agreement. The parties acknowledge that unless such sum is released
from escrow to the Company at the Second Closing, this Agreement shall be null
and void and of no further effect.

                            [signature page follows]

<PAGE>
                     SIGNATURE PAGE TO EMPLOYMENT AGREEMENT

               IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first above written.

                                            INTERVISUAL BOOKS, INC.

                                            By:      /s/ Waldo H. Hunt
                                               --------------------------------
                                            Name: Waldo H. Hunt
                                            Title:    Chairman

                                            EXECUTIVE

                                            /s/ Larry Nusbaum
                                            -----------------------------------
                                            Larry Nusbaum<PAGE>
                                                                   EXHIBIT 10.63

                                  AMENDMENT TO

                       ZINDART LOAN AND SECURITY AGREEMENT

                                  AND AGREEMENT

     THIS AMENDMENT TO ZINDART LOAN AND SECURITY AGREEMENT AND AGREEMENT (this
"December 2001 Amendment"), dated as of December 31, 2001, is entered into
between ZINDART LIMITED ("Zindart"), 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
13, 1999, between Zindart and Borrower (as previously amended, the "Agreement")
and contains certain other agreements. 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 December 2001 Amendment, in which
case, the definition contained herein shall govern. This December 2001 Amendment
is entered into in light of the following facts:

                                    RECITALS

     WHEREAS, the current outstanding principal balance of the Obligations under
the Agreement is $2,050,000 (the "Principal Balance");

     WHEREAS, Borrower and Zindart have agreed that (a) $400,000 of the
Principal Balance be converted to common stock of IBI, with voting rights to be
subject to the terms and provisions of the Voting Agreement, if any, to be
executed between Zindart and Intervisual Partners LLC (the "Investor") (the
"Voting Agreement"), (b) $400,000 of the Principal Balance be cancelled in the
quarter ending September 30, 2002, contingent upon satisfactory payment
performance by the Company of certain obligations, and (c) the remaining
$1,250,000 of the Principal Balance be payable in twenty-four equal monthly
installments beginning August 31, 2002;

     WHEREAS, the current outstanding balance of past due trade payables owing
by Borrower to Lender is approximately $1,250,000 (the "Past Due Payables");

     WHEREAS, Borrower and Zindart have agreed that (a) $400,000 of the Past Due
Payables (the "Converted Payables") be converted to common stock of IBI, with
voting rights subject to the terms and provisions of the Voting Agreement, if
any, (b) $400,000 of the Past Due Payables be cancelled upon the closing of the
sale of approximately $2,000,000, in the aggregate in one or more closings, of
IBI's Series A Preferred Stock (the "Preferred Stock") to the Investor (the
"Equity Financing"), and (c) the remaining $400,000 of the Past Due Payables be
payable in seven equal monthly installments beginning January 31, 2002; and

     WHEREAS, the parties desire to execute this December 2001 Amendment in
order to memorialize the above understandings and to facilitate the Equity
Financing.

     NOW, THEREFORE, the parties agree as follows:

                                      -1-
<PAGE>

     1.   The Agreement is hereby amended as follows:

          A.   Amended Definitions. The definitions of "Maturity Date" and
"Obligations" in the Agreement are hereby deleted and the following definitions
are inserted into Section 1.1 of the Agreement in the appropriate alphabetical
order:

               "Base Obligations" shall have the meaning ascribed thereto in the
definition of Obligations.

               "Converted Obligations" shall mean $400,000, which is a portion
of the Principal Balance of the Obligations owed by Borrower to Lender pursuant
to this Agreement and which is to be converted into common stock of IBI.

               "December 2001 Amendment" means the Amendment to Zindart Loan and
Security Agreement and Agreement dated December 31, 2001 among Borrower and
Lender.

               "Maturity Date" means July 31, 2004.

               "Obligations" means, after the conversion of the Converted
Obligations into common stock of IBI pursuant to the December 2001 Amendment,
(a) $1,200,000 (the "Base Obligations") plus (b) $400,000, if Borrower has not
paid $400,000 of the Past Due Payables as provided for in Section 3.C of the
December 2001 Amendment (the "Past Due Contingent Obligations") plus (c) all
interest, Lender Expenses and other amounts owed to Lender by Borrower pursuant
to the Agreement, whether absolute or contingent, due or to become due, now
existing or hereafter arising, including any interest that accrues after the
commencement of an Insolvency Proceeding.

               "Past Due Contingent Obligations" shall have the meaning ascribed
thereto in the definition of Obligations.

          B.   Amendment to Section 2.1(e). Section 2.1(e) of the Agreement is
hereby amended by deleting from Schedule A thereto the reference to the payment
of $250,000 due on or before March 15, 2002.

          C.   Amendment to Section 2.3(a). Section 2.3(a) of the Agreement is
hereby deleted and the following substituted in lieu thereof:

               "(a) INTEREST RATE. Except as set forth in Section 2.3(b), the
Obligations shall bear interest at a per annum rate equal to five percent
(5.00%) above the LIBOR Rate."

          D.   Amendment to Section 2.3(c). Section 2.3(c) of the Agreement is
hereby deleted and the following substituted in lieu thereof:

     "(c) PAYMENTS. Interest on the Base Obligations (including the Converted
     Obligations to the extent provided in the December 2001 Amendment) shall be
     due and payable on each Payment Date beginning December 31, 2001 and on the
     Maturity Date. Interest on the Past Due Contingent Obligations shall be due

                                      -2-
<PAGE>

     and payable on each Payment Date beginning December 31, 2002 if any Past
     Due Contingent Obligations are outstanding on such date. The principal
     amount of the Base Obligations shall be due and payable in twenty-four
     equal monthly installments beginning August 31, 2002. If any Past Due
     Contingent Obligations are outstanding on December 31, 2002, then the
     principal amount of the Past Due Contingent Obligations shall be due and
     payable in nineteen equal monthly installments beginning January 31, 2003.
     All outstanding principal and accrued interest on the Obligations shall be
     due and payable on the Maturity Date. All payments of principal, interest
     and fees shall be made by Borrower to Lender in immediately available
     funds. Any interest not so paid when due shall be compounded by becoming a
     part of the Obligations, and such interest shall thereafter accrue interest
     at the rate then applicable hereunder."

          E.   Amendment to Section 7.4. Section 7.4 of the Agreement is hereby
amended by adding the following before the period at the end of the first
sentence: "and other Indebtedness to Lender".

          F.   Conversion of Converted Obligations. Lender and Borrower hereby
agree to exchange the Converted Obligations for 634,921 shares of IBI's common
stock (the "Converted Obligations Common Stock") at a price of $0.63 per share.
The Converted Obligations Common Stock shall be subject to the Voting Agreement,
if any. IBI shall issue and deliver to Lender stock certificates evidencing the
Converted Obligations Common Stock within five business days of IBI amending its
Articles of Incorporation in order to increase its authorized capital stock to a
sufficient number of shares of common stock in order to issue the Converted
Obligations Common Stock. IBI agrees to use its best efforts to cause such
amendment to its Articles of Incorporation to occur as soon as practicable after
the effectiveness of this December 2001 Amendment.

          G.   Cancellation of Portion of Obligations under Agreement. Lender
and Borrower hereby agree to cancel the Past Due Contingent Obligations (as
defined in the Agreement, as amended by this December 2001 Amendment) upon IBI
making the seven monthly payments as provided for in Section 3.C below (the
"Cancellation Condition"). The parties agree that if the Cancellation Condition
has occurred, Lender shall cancel the Past Due Contingent Obligations effective
in the quarter ending September 30, 2002.

          H.   Amendment to Section 7.2. The first sentence of Section 7.2 of
the Agreement is hereby deleted and the following substituted in lieu thereof:

     "Engage in any business or permit any of its Subsidiaries to engage in any
     business, other than the business currently engaged in by Borrower and any
     business substantially similar or related thereto (or incidental thereto)."

          I.   Amendment to Section 8.6. A reference in Section 8.6 to "One
Hundred Thousand Dollars ($200,000)" is hereby amended to be "Two Hundred
Thousand Dollars ($200,000)".

                                      -3-
<PAGE>

     2.   Waiver of Defaults under Agreement. Lender hereby waives all (a)
existing defaults or Events of Default under the Agreement, including, without
limitation, all defaults caused by Borrower's failure to be in compliance prior
to the date hereof with the Loan and Security Agreement among Borrower and U.S.
Bank National Association, formerly known as Santa Monica Bank, dated March 12,
1999 (as the same has been or hereafter may be amended, the "Senior Loan
Agreement"), and (b) any defaults or Events of Default under the Agreement
caused by the failure of Borrower to comply with the financial covenants
contained in the Senior Loan Agreement with respect to periods on and prior to
June 30, 2002. Zindart specifically consents to the Equity Financing.

     3.   Conversion of Payables; Cancellation of Payables; Payment of Payables.

          With regard to the Past Due Payables, the parties hereto agree as
follows:

          A.   Conversion of Converted Payables. Lender and Borrower hereby
agree to exchange the Converted Payables for 634,921 shares of IBI's common
stock (the "Converted Payables Common Stock") at a price of $0.63 per share. The
Converted Payables Common Stock shall be subject to the Voting Agreement, if
any. IBI shall issue and deliver to Lender stock certificates evidencing the
Converted Payables Common Stock within five business days of IBI amending its
Articles of Incorporation in order to increase its authorized capital stock to a
sufficient number of shares of common stock in order to issue the Converted
Obligations Common Stock. IBI agrees to use its best efforts to cause such
amendment to its Articles of Incorporation to occur as soon as practicable after
the effectiveness of this December 2001 Amendment.

          B.   Cancellation of Portion of Past Due Payables. Lender and Borrower
hereby agree to cancel $400,000 of the Past Due Payables upon the closing of the
Equity Financing.

          C.   Payment Schedule for Past Due Payables. $400,000 of the Past Due
Payables shall be payable by IBI to Lender in seven equal monthly installments
of $57,143 on the last day of each month, beginning January 31, 2002.

     4.   Representations and Warranties.

          A.   Representations and Warranties by the Company. The Company hereby
represents and warrants to Zindart as follows:

               (i)  The execution and delivery by IBI of this December 2001
Amendment and the issuance and delivery of the Converted Payables Common Stock
and the Converted Obligations Common Stock have been duly authorized by all
requisite corporate action, except that the amendment to IBI's articles
necessary to authorize the increase in its common stock has not been approved by
all necessary corporate action and such amendment has not been filed with the
Secretary of State of the State of California. This December 2001 Amendment has
been duly executed and delivered by IBI and constitutes the legal, valid and
binding obligation of IBI, enforceable in accordance with its terms.

               (ii) The Converted Payables Common Stock and the Converted
Obligations Common Stock, when issued in accordance with the terms of this
Agreement, will be free and clear of all liens, charges, restrictions, claims
and encumbrances imposed by or

                                      -4-
<PAGE>
through IBI and when so issued, will be duly authorized, validly issued,
fully-paid and non-assessable shares of IBI common stock.

               (iii) Just prior to the "First Closing" as contemplated under the
Equity Financing, IBI will have no more than 8,475,000 shares of Common Stock
calculated on a fully diluted basis, assuming the exercise of all options,
warrants and other rights exercisable to purchase shares of Common Stock, not
counting options to purchase an aggregate of 600,000 shares which are to be
issued in connection with the Equity Financing to a director and an officer and
the shares to be issued to Zindart hereunder. At the "First Closing" of the
Equity Financing, Investor is to acquire 396,825 shares of IBI's Preferred Stock
and at the "Second Closing," Investor is to acquire 1,269.841 shares of
Preferred Stock, in each case each share of Preferred Stock is convertible into
two (2) share of Common Stock. As part of the Equity Financing, Investor also
has options to acquire up to 2,049,804 shares of Preferred Stock.

               (iv) The Company represents and warrants that a majority of its
issued and outstanding shares of Common Stock and the issued and outstanding
shares of Preferred Stock have all agreed to vote in favor of the Company's
Amended and Restated Articles of Incorporation which is necessary in order to
increase its authorized shares of Common Stock to permit the conversions
contemplated in the Agreement.

          B.   Representations and Warranties of Zindart. Zindart hereby
represents and warrants to IBI as follows:

               (i)  The execution and delivery by Zindart of this December 2001
Amendment has been duly authorized by all requisite corporate action. This
December 2001 Amendment has been duly executed and delivered by Zindart and
constitutes the legal, valid and binding obligation of Zindart, enforceable in
accordance with its terms.

               (ii) Zindart is an "accredited investor" within the meaning of
Rule 501 under the Securities Act of 1933, as amended (the "Securities Act") and
Zindart has sufficient knowledge and experience in investing in companies
similar to IBI so as to be able to evaluate the risks and merits of its
investment in IBI and is able financially to bear the risks thereof.

               (iii) Zindart has had the opportunity to discuss IBI's business,
management and affairs with IBI's management and is acquiring the Converted
Payables Common Stock and the Converted Obligations Common Stock for its own
account for the purpose of investment and not with a view to or in connection
with any distribution thereof.

               (iv) Zindart understands that (a) the Converted Obligations
Common Stock and the Converted Payables Common Stock have not been registered
under the Securities Act pursuant to Section 4(2) thereof, (b) the Converted
Payables Common Stock and the Converted Obligations Common Stock must be held
indefinitely unless a subsequent disposition thereof is registered under the
Securities Act or is exempt from such registration, (c) the stock certificates
evidencing such shares will bear a Securities Act restrictive legend to that
effect and (iv) IBI will make a notation on its transfer books to such effect.

                                      -5-
<PAGE>

     5.   Miscellaneous.

          A.   This December 2001 Amendment shall be deemed effective as of the
date first hereinabove written; provided, however, that a condition precedent to
the effectiveness of the obligations of the parties hereto shall be the closing
of the Equity Financing on or before January 31, 2002 and the execution by the
Company and USBank of an extension and modification agreement whereby the due
date of USBank's note is extended to December 31, 2002.

          B.   This December 2001 Amendment shall be governed by and construed
in accordance with the laws of the State of California (without regard to its
conflict of laws principles) as applied to agreements among California
residents, made and to be performed entirely within the State of California. The
parties hereto irrevocably consent to the exclusive personal jurisdiction of the
Federal and State courts located in Los Angeles County, as applicable, for any
matter arising out of or relating to this December 2001 Amendment.

          C.   The Agreement, as amended by this December 2001 Amendment, and
the other documents referenced herein and delivered pursuant to this December
2001 Amendment embody the entire agreement and understanding between the parties
hereto with respect to the subject matter hereof and supersede all prior
agreements and understandings relating to such subject matter. Without limiting
the foregoing, this December 2001 Amendment replaces and supersedes in its
entirety the letter dated November 20, 2001 between Intervisual Partners, LLC
and Zindart. Except as specifically amended herein, the Agreement shall remain
in full force and effect without any other changes, amendments or modifications.

          D.   This December 2001 Amendment may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one in the same instrument.

                            [signature page follows]

                                      -6-
<PAGE>

        IN WITNESS WHEREOF, Zindart and Borrower have executed this December
2001 Amendment.

                                            INTERVISUAL BOOKS, INC.,
                                            a California corporation

                                            By:    /s/ Waldo H. Hunt
                                               --------------------------------
                                            Title: Chairman of the Board

                                            FAST FORWARD MARKETING, INC.,
                                            a California corporation

                                            By:   /s/ Dan P. Reavis
                                               --------------------------------
                                            Title: President

                                            ZINDART LIMITED

                                            By:   /s/ Peter J. Gardiner
                                               --------------------------------
                                            Title: Chairman

The undersigned hereby executes this December 2001 Amendment for the purposes of
confirming that this December 2001 Amendment replaces and supersedes in its
entirety the letter dated November 20, 2001 between the undersigned and Zindart
Limited.

INTERVISUAL PARTNERS, LLC

By:     /s/ Louis Perlman
   ----------------------------
Name:  Louis Perlman
Title: Managing Member

                                      -7-

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