Exhibit 10.2

 

AMENDMENT NO. 1 TO CREDIT AGREEMENT

 

This Amendment, dated as of January 3, 2003 (this “Amendment”), is by and among
Footstar, Inc. (the “Lead Borrower”) and Footstar Corporation (collectively,
with the Lead Borrower, the “Borrowers”), the financial institutions named as
parties hereto as lenders (the “Lenders”), Fleet National Bank, as swingline
lender and as administrative agent (in such capacity, the “Administrative
Agent”), Fleet Retail Finance Inc., as collateral agent (in such capacity, the
“Collateral Agent”), Congress Financial Corporation and Wells Fargo Retail
Finance, LLC, as syndication agents (in such capacity, the “Syndication Agents”)
and JPMorgan Chase Bank, as documentation agent (in such capacity, the
“Documentation Agent”).

 

WHEREAS, the Borrowers have requested a further extension of time by which they
will be required to deliver to the Administrative Agent and the Lenders their
quarterly financial statements and Compliance Certificate pursuant to Section
6.1(b) and (c) of the Credit Agreement for the fiscal quarter ending September
28, 2002.

 

NOW, THEREFORE, in consideration of the premises set forth above, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrowers, the Lenders and the Administrative Agent agree as
follows:

 

1. Extension under Credit Agreement. The Administrative Agent and each of the
Lenders hereby agree that the time by which the Borrowers shall be required to
deliver their quarterly financial statements under Section 6.1(b) and their
quarterly Compliance Certificate under Section 6.1(c) of the Credit Agreement,
in each case for the fiscal quarter ended September 28, 2002, is hereby extended
to the earlier of: (i) the date by which the Lead Borrower files with the
Securities and Exchange Commission its Form 10Q report for the fiscal quarter
ended September 28, 2002, or (ii) March 29, 2003.

 

2. Conditions to Effectiveness. The extension contemplated by this Amendment
shall become effective upon the satisfaction of the following conditions:

 

(a) the Administrative Agent shall have received counterparts hereof executed by
each of the Required Lenders, the Administrative Agent and the Borrowers;

 

(b) all representations and warranties contained in this Amendment shall be true
and correct in all material respects;

 

(c) no event shall have occurred and be continuing which constitutes an Event of
Default or a Default; and

 

(d) the Borrowers shall have paid a fee equal to 0.07% on the Commitment amount
of each Lender who returns its executed signature page to the attention of Susan
E. Siebert, Esq., Edwards & Angell, LLP, 101 Federal Street, Boston, MA 02110,
fax: (617) 439-4170, e-mail: ssiebert@ealaw.com, by 5:00 p.m. (EST) on Friday,
January 3, 2003.

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3. Reference to and Effect on the Loan Documents. On and after the effective
date of this 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
modified by this Amendment, and each reference in the other Loan Documents to
“the Credit Agreement”, “thereunder”, “thereof” or words of like import
referring to the Credit Agreement shall mean and be a reference to the Credit
Agreement, as modified by this Amendment. The Credit Agreement and all other
Loan Documents are and shall continue to be in full force and effect and are
hereby in all respects ratified and confirmed.

 

4. Miscellaneous.

 

(a) Representations and Warranties. Each of the Borrowers represents and
warrants that:

 

(i) it is duly organized, validly existing corporation in good standing under
the laws of the jurisdiction of its organization and has the corporate power and
authority to execute, deliver and carry out the terms and provisions of this
Amendment and has taken or caused to be taken all necessary corporate action to
authorize the execution, delivery and performance of this Amendment;

 

(ii) no consent of any other person, including, without limitation,
shareholders, creditors or Subsidiaries of either of the Borrowers, and no
action of, or filing with, any governmental or public body or authority, is
required to authorize, or is otherwise required in connection with the
execution, delivery and performance of, this Amendment;

 

(iii) this Amendment has been duly executed and delivered by a duly authorized
officer on behalf of each of the Borrowers, and constitutes its legal, valid and
binding obligations, enforceable in accordance with its terms, except as
enforcement thereof may be subject to the effect of any applicable (A)
bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors’ rights generally and (B) general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law); and

 

(iv) the execution, delivery and performance of this Amendment will not violate
any law, statute or regulation applicable to either of the Borrowers or any
order or decree of any court or governmental instrumentality applicable to it,
or conflict with, or result in the breach of, or constitute a default under, any
of its contractual obligations.

 

(b) No Waiver. Nothing herein contained shall constitute a waiver or be deemed
to be a waiver, of any existing Default or Event of Default, and the Lenders and
the Administrative Agent are entering into this Amendment without prejudice and
hereby reserve all rights and remedies granted to them by the Credit Agreement,
by the other Loan Documents, by law and otherwise.

 

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(c) Counterparts. This Amendment may be executed in any number of separate
counterparts, each of which shall collectively and separately constitute one
agreement. Delivery of an executed counterpart of a signature page to this
Amendment by facsimile shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

(d) GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAWS OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES).

 

[Signature pages to follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective duly authorized officers, as of the date first above
written.

 

FOOTSTAR, INC., as a Borrower

By:

 

/s/ Kathy Guinnessey

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Name:

 

Kathy Guinnessey

   

Title:

 

Vice President & Treasurer

FOOTSTAR CORPORATION, as a Borrower

By:

 

/s/ Kathy Guinnessey

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Name:

 

Kathy Guinnessey

   

Title:

 

Vice President & Treasurer

 

Signature Page to Amendment No. 1 to Credit Agreement

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FLEET NATIONAL BANK, as Administrative

Agent and as Lender

By:

 

/s/ SUZANNE CHOMICZEWSKI

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Name:

 

SUZANNE CHOMICZEWSKI

   

Title:

 

V.P.

FLEET RETAIL FINANCE INC. as Collateral

Agent

By:

 

/s/ Elizabeth A. Ratto

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Name:

 

Elizabeth A. Ratto

   

Title:

 

Managing Director

 

Signature Page to Amendment No. 1 to Credit Agreement

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BACK BAY CAPITAL FUNDING LLC

By:

 

/s/ Kristan M. O’Connor

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Name:

 

Kristan M. O’Connor

   

Title:

 

Director

 

Signature Page to Amendment No. 1 to Credit Agreement

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CONGRESS FINANCIAL CORPORATION

By:

 

/s/ THOMAS GRABOSKY

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Name:

 

THOMAS GRABOSKY

   

Title:

 

VICE PRESIDENT

 

Signature Page to Amendment No. 1 to Credit Agreement

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WELLS FARGO RETAIL FINANCE, LLC

By:

 

/s/ EUNNIE KIM

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Name:

 

EUNNIE KIM

   

Title:

 

ASST. VICE PRESIDENT

 

Signature Page to Amendment No. 1 to Credit Agreement

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JPMORGAN CHASE BANK

By:

 

/s/ CHRISTINE M. FERRISE

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Name:

 

CHRISTINE M. FERRISE

   

Title:

 

VICE PRESIDENT

 

Signature Page to Amendment No. 1 to Credit Agreement

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THE CIT GROUP/BUSINESS CREDIT, INC.

By:

 

/s/    Authorized Signatory

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Name:

   

Title:

 

Signature Page to Amendment No. 1 to Credit Agreement

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UPS CAPITAL CORPORATION

By:

 

/s/ Charles Johnson

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Name:

 

Charles Johnson

   

Title:

 

Managing Director, DFD

 

Signature Page to Amendment No. 1 to Credit Agreement

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AMSOUTH BANK

By:

 

/s/ Kathleen F. D’Angelo

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Name:

 

Kathleen F. D’Angelo

   

Title:

 

Attorney-In-Fact

 

Signature Page to Amendment No. 1 to Credit Agreement

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NATIONAL CITY BANK

By:

 

/s/ Thomas J. McDonnell

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Name:

 

Thomas J. McDonnell

   

Title:

 

Senior Vice President

 

Signature Page to Amendment No. 1 to Credit Agreement

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ORIX FINANCIAL SERVICES, INC.

By:

 

/s/ Andrew Kosowsky

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Name:

 

Andrew Kosowsky

   

Title:

 

Vice President

 

Signature Page to Amendment No. 1 to Credit Agreement

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SIEMENS FINANCIAL SERVICES, INC.

By:

 

/s/ Frank Amodio

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Name:

 

Frank Amodio

   

Title:

 

Vice President - Credit

 

Signature Page to Amendment No. 1 to Credit Agreement

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ACKNOWLEDGEMENT AND CONSENT BY GUARANTORS

 

Each of the undersigned Guarantors does hereby acknowledge and consent to the
execution, delivery and performance of the within foregoing Amendment, confirms
the continuing effect of such Guarantor’s guarantee of the Obligations after
giving effect to the foregoing Amendment, and agrees to the provisions of the
within and foregoing Amendment.

 

Accepted and agreed to as of January 3, 2003 by the Facility Guarantors:

 

FOOTSTAR CENTER, INC.

FOOTACTION CENTER, INC.

ATHLETIC CENTER, INC.

FA HC, INC.

FEET HC, INC.

FWS I, INC.

FWS II, INC.

STELLAR WHOLESALING, INC.

FEET CENTER, INC.

MELDISCO H.C., INC.

APACHE-MINNESOTA THOM MCAN, INC.

MILES SHOES MELDISCO LAKEWOOD, COLORADO, INC.

MALL OF AMERICA FAN CLUB, INC.

NEVADA FEET, INC.

FEET OF COLORADO, INC.

LFD I, INC.

LFD II, INC.

LFD OPERATING, INC.

FOOTSTAR HQ, LLC

SHOE ZONE CENTER, INC.

LFD TODAY, INC.

ATHLETIC ATTIC OF TEXAS, INC.
and each of their Subsidiaries, including all other Facility Guarantors

 

By:

 

/s/    Authorized Signatory

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Duly Authorized Signatory as to all