Exhibit 10.2

 

AMENDMENT LETTER

 

December 21, 2001

 

Saks Incorporated

750 Lakeshore Parkway

Birmingham, Alabama 35211

 

Each of the Lenders Party

to the Credit Agreement

Referenced Below

 

  Re:   Amendment No. 1 to Credit Agreement

 

Reference is hereby made to that certain Credit Agreement dated as of November
20, 2001 among Saks Incorporated, a Tennessee corporation (the “Borrower”), Bank
of America, N.A., as Agent (the “Agent”), and the Lenders party thereto (the
“Lenders”). Capitalized terms not defined herein shall have the meanings given
such terms in the Credit Agreement.

 

The Agent, the Borrower, and the Lenders party hereto have determined that the
terms of the Credit Agreement set forth in certain negative covenants do not
reflect the full understanding of the parties thereto and have agreed to amend
the Credit Agreement to reflect the correct terms thereof.

 

The Agent, the Borrower, and the Lenders party hereto hereby agree that (a)
Section 7.8(a) the Credit Agreement is hereby amended by inserting a new
sentence at the end thereof which shall read as follows:

 

Notwithstanding the foregoing, for the purposes of Section 7.8(a)(v) and (vi),
the term “Fiscal Year” shall mean, with respect to Fiscal Year 2001, only the
fourth fiscal quarter of Fiscal Year 2001 and there shall not be carried forward
from such Fiscal Year any amounts not realized and otherwise permitted to be
carried forward pursuant to the terms of this section.

 

and (b) Section 7.18 the Credit Agreement is hereby amended by inserting a new
sentence at the end thereof which shall read as follows:

 

Notwithstanding the foregoing, for Fiscal Year 2001 only, the Borrower may make
or incur Capital Expenditures in an amount not to exceed $275,000,000, however,
none of the amounts otherwise permitted to be carried forward from such Fiscal
Year pursuant to the terms of this section shall be carried forward to any
Fiscal Year after Fiscal Year 2001.

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Each of the Guarantors joins in the execution of this Letter for the purposes of
consenting to the amendments to the Credit Agreement contained herein.

 

Each of the Lenders party hereto acknowledges and agrees that the changes to the
Credit Agreement set forth herein will be reflected in each certificate
delivered pursuant to the terms of Section 5.2(d) of the Credit Agreement and
any deviation from the form of Exhibit J to the Credit Agreement as a
consequence thereof shall not be deemed substantial.

 

This letter may be executed in any number of counterparts and all the
counterparts taken together shall be deemed to constitute one and the same
instrument.

 

BANK OF AMERICA, N.A., as Agent

 

By:    

    

/s/    Patrick Wilson

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Name:

    

Patrick Wilson

Title:

    

Senior Vice President

 

This Letter is hereby agreed to by the parties signatory below:

 

SAKS INCORPORATED

By:

    

/s/    Charles J. Hansen

--------------------------------------------------------------------------------

Name:

    

Charles J. Hansen

--------------------------------------------------------------------------------

Title:

    

Senior Vice President

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GUARANTORS:

 

CARSON PIRIE HOLDINGS, INC.

MCRAE’S, INC.

MCRAE’S OF ALABAMA, INC.

PARISIAN, INC.

SAKS & COMPANY

SAKS DIRECT, INC.

SAKS DISTRIBUTION CENTERS, INC.

SAKS FIFTH AVENUE DISTRIBUTION COMPANY

SAKS FIFTH AVENUE, INC.

SAKS WHOLESALERS, INC.

SAKSFIFTHAVENUE.COM, INC.

SAKS FIFTH AVENUE OF TEXAS, INC.

SAKS HOLDINGS, INC.

TEX SFA, INC.

SCCA STORE HOLDINGS, INC.

HERBERGER’S DEPARTMENT STORES, LLC

JACKSON LEASING, LLC

MCRIL, LLC

NEW YORK CITY SAKS, LLC

SCCA, LLC

SCIL, LLC

SFAILA, LLC

SAKS FIFTH AVENUE TEXAS, L.P.

 

PMIN GENERAL PARTNERSHIP

    BY: Parisian, Inc., a General Partner

 

MCRAE’S STORES PARTNERSHIP

    BY: McRae’s, Inc., a General Partner

 

By:

    

/s/    Charles J. Hansen

--------------------------------------------------------------------------------

Name:

    

Charles J. Hansen

Title:

    

Senior Vice President

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LENDERS:

BANK OF AMERICA, N.A., as Lender

 

By:

    

/s/    Patrick Wilson

--------------------------------------------------------------------------------

Name:

    

Patrick Wilson

Title:

    

Senior Vice President

 

CITIBANK, N.A.

 

By:

    

/s/    Jim Williams

--------------------------------------------------------------------------------

Name:

    

Jim Williams

Title:

    

Vice President

 

LASALLE BUSINESS CREDIT, INC.

 

By:

    

/s/    Lawrence P. Garni

--------------------------------------------------------------------------------

Name:

    

Lawrence P. Garni

Title:

    

Senior Vice President

 

IBJ WHITEHALL BUSINESS CREDIT

CORPORATION

 

By:

    

/s/    Christopher Hill

--------------------------------------------------------------------------------

Name:

    

Christopher Hill

Title:

    

Vice President

 

THE PROVIDENT BANK

 

By:

    

/s/    Cary Sierzputowski

--------------------------------------------------------------------------------

Name:

    

Cary Sierzputowski

Title:

    

Vice President

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FLEET NATIONAL BANK

 

By:

    

/s/    Bethann Halligan

--------------------------------------------------------------------------------

Name:

    

Bethann Halligan

Title:

    

Managing Director

 

AMSOUTH BANK

 

By:

    

/s/    Stephen V. Mangiante

--------------------------------------------------------------------------------

Name:

    

Stephen V. Mangiante

Title:

    

Attorney-in-Fact

 

SIEMENS FINANCIAL SERVICES, INC.

 

By:

    

/s/    Frank Amodio

--------------------------------------------------------------------------------

Name:

    

Frank Amodio

Title:

    

Vice President

 

THE BANK OF NEW YORK

 

By:

    

/s/    Howard F. Bascom, Jr.

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Name:

    

Howard F. Bascom, Jr.

Title:

    

Vice President

 

TRANSAMERICA BUSINESS CAPITAL

CORPORATION

 

      

By:

    

/s/    Deborah A. Ramsey

--------------------------------------------------------------------------------

Name:

    

Deborah A. Ramsey

Title:

    

Vice President

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FOOTHILL CAPITAL CORPORATION

 

By:

    

/s/    Juan Barrera

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Name:

    

Juan Barrera

Title:

    

Assistant Vice President

 

FIRST TENNESSEE BANK NATIONAL

ASSOCIATION

 

      

By:

    

/s/    Todd Brown

--------------------------------------------------------------------------------

Name:

    

Todd Brown

Title:

    

Vice President

 

BANK ONE, N.A.

 

By:

    

/s/    Debora K. Oberling

--------------------------------------------------------------------------------

Name:

    

Debora K. Oberling

Title:

    

First Vice President

 

FIRST UNION NATIONAL BANK

 

By:

    

/s/    Richard J. Preskenis

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Name:

    

Richard J. Preskenis

Title:

    

Vice President

 

THE CIT GROUP/BUSINESS

CREDIT, INC.

 

By:

    

/s/    Arthur R. Cordwell, Jr.

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Name:

    

Arthur R. Cordwell, Jr.

Title:

    

Vice President

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GENERAL ELECTRIC CAPITAL

CORPORATION

      

By:

    

/s/    Ronald J. Banks

--------------------------------------------------------------------------------

Name:

    

Ronald J. Banks

Title:

    

Duly Authorized Signatory

 

PNC BUSINESS CREDIT

 

By:

    

/s/    Manuel R. Borges

--------------------------------------------------------------------------------

Name:

    

Manuel R. Borges

Title:

    

Assistant Vice President

 

UPS CAPITAL CORPORATION

 

By:

    

/s/    Scott Mower

--------------------------------------------------------------------------------

Name:

    

Scott Mower

Title:

    

Managing Director, ABL