Fleet Retail Finance Inc., Administrative Agent 40 Broad Street - 10th Floor Boston, Massachusetts 02109 Attention: Ms. Sally Sheehan Re: August 24, 2000 Loan and Security Agreement As amended (The “Loan Agreement”) Dear Ms. Sheehan: Reference is made...

Exhibit 10.48

The Gymboree Corporation

March 31, 2002                             

Fleet Retail Finance Inc., Administrative Agent
00 Xxxxx Xxxxxx - 00xx Xxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xx. Xxxxx Xxxxxxx

Re: August 24, 2000 Loan and Security Agreement
As amended (The “Loan Agreement”)

Dear Xx. Xxxxxxx:

     Reference is made to the Loan Agreement in which you are the Administrative Agent and the Collateral Agent for a syndicate of revolving credit lenders and a term Lender and The Gymboree Corporation is the “Lead Borrower” for itself and its operating subsidiaries. (Terms used herein which are defined in the Loan Agreement are used as so defined).

     This letter constitutes a request by and on behalf of the Borrowers for the Lenders to Consent to the Borrowers’ having incurred Consolidated Capital Expenditures in excess of $15 Million for the Borrowers’ Fiscal year ending on or about February 2, 2002.

This letter further confirms the following:

     (a) Such Consolidated Capital Expenditures for the Borrowers’ Fiscal year ending on or about February 2, 2002 did not exceed $19 Million.

     (b) Following the Lenders’ providing of the Consent requested by this letter, no Borrower will be InDefault.

     (c) There is no basis nor set of facts on which any amount (or any portion thereof) owed by any Borrower under the Loan Agreement could be reduced, offset, waived, or forgiven, by rescission or otherwise; nor is there any claim, counterclaim, off set, or defense (or other right, remedy, or basis having a similar effect) available to any Borrower with regard to thereto; nor is there any basis on which the terms and conditions of any of the Liabilities could be claimed to be other than as stated on the written instruments which evidence such Liabilities. To the extent that any Borrower or any such guarantor has (or ever had) any such claims against the Agent or any Lender, each hereby affirmatively WAIVES and RELEASES the same.

     (d) Your consent may be provided by multiple counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument.

Very truly yours,
THE GYMBOREE CORPORATION
(“LEAD BORROWER”)


By /s/ Xxxxx XxXxxxxxx
——————————————
Print Name: Xxxxx XxXxxxxxx
——————————————
Title: CFO
——————————————

“BORROWERS”:
GYMBOREE MANUFACTURING, INC.


By /s/ Xxxxx XxXxxxxxx
——————————————
Print Name: Xxxxx XxXxxxxxx
——————————————
Title: CFO
——————————————

GYMBOREE OPERATIONS, INC.


By /s/ Xxxxx XxXxxxxxx
——————————————
Print Name: Xxxxx XxXxxxxxx
——————————————
Title: CFO
——————————————

GYMBOREE PLAY PROGRAMS, INC.


By /s/ Xxxxx XxXxxxxxx
——————————————
Print Name: Xxxxx XxXxxxxxx
——————————————
Title: CFO
——————————————

GYMBOREE RETAIL STORES, INC.


By /s/ Xxxxx XxXxxxxxx
——————————————
Print Name: Xxxxx XxXxxxxxx
——————————————
Title: CFO
——————————————

THE GYMBOREE STORES, INC.


By /s/ Xxxxx XxXxxxxxx
——————————————
Print Name: Xxxxx XxXxxxxxx
——————————————
Title: CFO
——————————————

GYM-XXXX, INC.


By /s/ Xxxxx XxXxxxxxx
——————————————
Print Name: Xxxxx XxXxxxxxx
——————————————
Title: CFO
——————————————

The foregoing requested Consent is hereby given in reliance upon the representations included therein.

THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT:
FLEET RETAIL FINANCE INC.


By /s/ Xxxxx X. Xxxxxxx
——————————————
Name Xxxxx X. Xxxxxxx
——————————————
Title Director
——————————————

THE REVOLVING CREDIT LENDERS:
FLEET RETAIL FINANCE INC.


By /s/ Xxxxx X. Xxxxxxx
——————————————
Name Xxxxx X. Xxxxxxx
——————————————
Title Director
——————————————

THE CIT GROUP / BUSINESS CREDIT, INC.


By /s/ Xxxxxxx Xxxxxxx
——————————————
Name Xxxxxxx Xxxxxxx
——————————————
Title Vice President
——————————————

FOOTHILL CAPITAL CORPORATION


By /s/ Xxxxxx Xxxxx
——————————————
Name Xxxxxx Xxxxx
——————————————
Title Vice President
——————————————