EXHIBIT 10.2
FIRST LETTER AMENDMENT
June 30, 1998
To the Financial Institutions
parties as A Lenders
to the Credit Agreement
referred to below
Gentlemen:
We refer to the U.S. $800,000,000 Credit Agreement dated as of July 1,
1997 (the "Credit Agreement") among the undersigned, certain of our subsidiaries
parties thereto as LC Subsidiaries, you, Citibank, N.A., as Issuing Bank and
Citicorp USA Inc., as Agent. Unless otherwise defined herein, the terms defined
in the Credit Agreement shall be used herein as therein defined.
It is hereby agreed by you and us that the Credit Agreement is,
effective as of the date first above written, hereby amended as follows:
(a) The definition of "A Commitment" in Section 1.01 is amended in
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full to read as follows:
"`A Commitment' means, as to each A Lender, the amount set forth
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opposite such A Lender's name on Schedule I to the First Letter
Amendment under the caption A Commitment or, if such A Lender has
------------
entered into one or more Assignment and Acceptances, the amount
set forth for such A Lender with respect thereto in the Register
maintained by the Agent pursuant to Section 10.07 hereof, in each
case as such amount may be reduced or increased pursuant to
Section 2.05."
(b) The definition of "Eurodollar Rate Margin" in Section 1.01 is
----------------------
amended by deleting the number "0.165%" therein and substituting for such
number the number "0.175%".
(c) The definition of "LC Commitment" in Section 1.01 is amended in
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full to read as follows:
"`LC Commitment' means, as to any LC Lender, the amount set forth
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opposite such LC Lender's name on Schedule I to the First Letter
Amendment under the caption LC Commitment or, if such LC Lender
-------------
has entered into one or more Assignment and Acceptances, the
amount set forth for such LC Lender with respect thereto in the
Register maintained by the Agent pursuant to Section 10.07
hereof, in each case
2
as such amount may be reduced or increased from time to time
pursuant to Section 3.09."
(d) The definition of "LC Termination Date" in Section 1.01 is amended
-------------------
by deleting the date "June 30, 1998" therein and substituting for such date
the date "June 29, 1999"
(e) The definition of "Revolver Termination Date" in Section 1.01 is
-------------------------
amended by deleting the date "June 30, 1998" therein and substituting for
such date the date "June 29, 1999."
(f) A definition of First Letter Amendment is added in Section 1.01 in
----------------------
the appropriate alphabetical order to read as follows:
"`First Letter Amendment' means the First Letter Amendment dated
----------------------
June 30, 1998 to this Agreement."
(g) Section 2.04(a) is amended by deleting the number "0.06%" therein
and substituting for such number the number "0.05%".
By executing this Amendment, each of the undersigned and each of you
agree that ABN AMRO Bank N.V. is a Lender for all purposes of the Credit
Agreement and its A Commitment and LC Commitment are the respective amounts set
forth opposite its name on Schedule I hereto.
On and after the effective date of this letter amendment, each
reference in the Credit Agreement to "this Agreement", "hereunder", "hereof" or
words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement as amended by this letter amendment. The
Credit Agreement, as amended by this letter amendment, is and shall continue to
be in full force and effect and is hereby in all respects ratified and
confirmed.
If you agree to the terms and provisions hereof, please evidence such
agreement by executing and returning five signature pages of this letter
amendment to Shearman & Sterling, 555 California Street, San Francisco,
California 94104, Attention: Steven Sherman. This letter amendment shall become
effective as of the date first above written when and if on or before June 30,
1998 counterparts of this letter amendment shall have been executed by us and
all of the A Lenders. This letter amendment is subject to the provisions of
Section 10.01 covering amendments, etc. of the Credit Agreement.
3
This letter amendment may be executed in any number of counterparts
and by any combination of the parties hereto in separate counterparts, each of
which counterparts shall be an original and all of which taken together shall
constitute one and the same letter amendment.
Very truly yours,
THE BORROWER
THE GAP, INC.
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
THE LC SUBSIDIARIES
BANANA REPUBLIC, INC.
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
GPS (U.S.A.) LIMITED
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
GAP (CANADA) INC.
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
GAP INTERNATIONAL SOURCING LIMITED
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
4
GAP INTERNATIONAL SOURCING
PTE. LTD.
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
GAP (JAPAN) K.K.
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
GAP INTERNATIONAL SOURCING (HOLDING) LIMITED
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
GAP (NETHERLANDS) B.V.
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
OLD NAVY INC.
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
GPS CATALOG, INC.
By /s/ Warren R. Hashagen
-----------------------------
Name:
Title:
5
Agreed as of the date first above written:
CITICORP USA INC., as a Bank
and as Agent
By /s/ Carolyn A. Wendler
---------------------------
Name: Carolyn A. Wendler
Title: Managing Director
CITIBANK N.A., as Issuing Bank
By
---------------------------
Name: Marjorie Futornick
Title: Vice President
6
BANK OF AMERICA NATIONAL
TRUST & SAVINGS ASSOCIATION, as
a Bank and as Senior Managing Agent
By /s/ Maria Vickroy-Peralta
----------------------------
Name: Maria Vickroy-Peralta
Title: Vice President
7
THE HONGKONG AND SHANGHAI
BANK CORPORATION LIMITED, as
a Bank and as Senior Managing Agent
By /s/ Douglas F. Stolberg
----------------------------
Name: Douglas F. Stolberg
Title: Senior Vice President
8
NATIONSBANK OF TEXAS, N.A., as
a Bank
By /s/ Michael Shea
---------------------
Name: Michael Shea
Title: S.V.P.
9
THE ROYAL BANK OF CANADA, as
a Bank
By /s/ Molly Drennan
--------------------
Name: Molly Drennan
Title: Senior Manager Corporate Banking
10
BANK OF MONTREAL, as
a Bank
By /s/ Richard W. Camm
----------------------
Name: Richard W. Camm
Title: Managing Director
11
SOCIETE GENERALE, as
a Bank
By /s/ J. Blaine Shaum
-----------------------
Name: J. Blaine Shaum
Title: Managing Director
12
THE FUJI BANK, LIMITED, as
a Bank
By /s/ Keiichi Ozawa
---------------------
Name: Keiichi Ozawa
Title: Joint General Manager
13
MORGAN GUARANTY TRUST
COMPANY OF NEW YORK, as a Bank
and as a Senior Managing Agent
By /s/ Robert Bottamedi
-----------------------
Name: Robert Bottamedi
Title: Vice President
14
THE SUMITOMO BANK LIMITED, as
a Bank
By /s/ Kozo Masaki
------------------
Name: Kozo Masaki
Title: General Manager
15
DEUTSCHE BANK AG NEW YORK
BRANCH AND/OR CAYMAN ISLANDS
BRANCH, as a Bank
By /s/ Hans-Josef Thiele
-------------------------
Name: Hans-Josef Thiele
Title: Director
By /s/ Joel Makowsky
--------------------
Name: Joel Makowsky
Title: Vice President
16
UNION BANK OF SWITZERLAND,
NEW YORK BRANCH, as a Bank
By /s/ Paula Mueller
--------------------
Name: Paula Mueller
Title: Vice President Structured Finance
By /s/ Philippe R. Sandmeier
----------------------------
Name: Philippe R. Sandmeier
Title: Director
17
U.S. NATIONAL BANK OF OREGON, as
a Bank
By /s/ Brennan K. Church
------------------------
Name: Brennan K. Church
Title: Assistant Vice President
18
ABN AMRO BANK N.V., as a Bank
By /s/ Jeffrey A. French
------------------------
Name: Jeffrey A. French
Title: Group Vice President & Director
By /s/ Ian S. Hisert
--------------------
Name: Ian S. Hisert
Title: Corporate Banking Officer
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SCHEDULE I
Lender A Commitment LC Commitment
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Citicorp USA Inc. 38,684,210.53 49,736,842.11
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Bank of America National Trust & Savings 33,157,894.74 42,631,578.95
Association
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The Hongkong and Shanghai 33,157,894.74 42,631,578.95
Bank Corporation Limited
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NationsBank of Texas, N.A. 23,947,368.42 30,789,473.68
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The Royal Bank of Canada 18,421,052.63 23,684,210.53
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Bank of Montreal 18,421,052.63 23,684,210.53
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Societe Generale 23,947,368.42 30,789,473.68
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The Fuji Bank, Limited 18,421,052.63 23,684,210.53
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Morgan Guaranty Trust Company of New York 33,157,894.74 42,631,578.95
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The Sumitomo Bank Limited 23,947,368.42 30,789,473.68
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Deutsche Bank AG New York Branch and/or 23,947,368.42 30,789,473.68
Cayman Islands Branch
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Union Bank of Switzerland, New York Branch 18,421,052.63 23,684,210.53
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U.S. National Bank of Oregon 18,421,052.63 23,684,210.53
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ABN AMRO Bank N.V. 23,947,368.42 30,789,473.68
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