EXHIBIT 10.47

FIRST AMENDMENT

     THIS FIRST AMENDMENT dated as of January 29, 2004 (this “Amendment”) is to
the Second Amended and Restated Credit Agreement (the “Credit Agreement”) dated
as of October 22, 2002 among WILLIAMS-SONOMA, INC., a California corporation
(the “Borrower”), various financial institutions (the “Lenders”) and BANK OF
AMERICA, N.A., as agent for the Lenders (the “Agent”). Unless otherwise defined
herein, terms defined in the Credit Agreement are used herein as defined in the
Credit Agreement.

     WHEREAS, the parties hereto desire to amend the Credit Agreement in certain
respects;

     NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration (the receipt and sufficiency of which are hereby
acknowledged), the parties hereto agree as follows:

     SECTION 1. Amendments. Effective on, and subject to the occurrence of, the
Amendment Effective Date (as defined below):

     1.1 Section 1.1 of the Credit Agreement shall be amended by adding the
following definition thereto in its appropriate alphabetical position:

     “First Amendment Effective Date” means the “Amendment Effective Date” under
and as defined in the First Amendment to this Agreement dated as of January 29,
2004.

     1.2 The definition of “Letter of Credit Sublimit” in Section 1.1 of the
Credit Agreement shall be amended by deleting the figure “$50,000,000” where it
appears in such definition and inserting the figure “$100,000,000” in lieu
thereof.

     1.3 Section 11.4 of the Credit Agreement shall be amended by deleting
clause (x) of such Section and inserting the following in lieu thereof:

          (x) the Borrower may repurchase its Capital Stock, provided that (A)
(1) the aggregate amount of all such repurchases during the period from the
Closing Date to the First Amendment Effective Date shall not exceed an amount
equal to the sum of $100,000,000, plus an amount equal to ten percent (10.0%) of
the Borrower’s Net Income during the period from the Closing Date through the
end of the Fiscal Quarter ending immediately prior to the date of such
repurchase and (2) the aggregate amount of all such repurchases during any
Fiscal Year (commencing with the Borrower’s Fiscal Year beginning February 2,
2004) shall not exceed $100,000,000 (it being understood that all repurchases of
Capital Stock by the Borrower during the period from the First Amendment
Effective Date through January 30, 2004 shall be counted against the limitation
in this clause (A)(2) with respect to the Borrower’s Fiscal Year beginning
February 2, 2004) and (B) no Default shall be in existence at the time of such
repurchase.

     SECTION 2. Representations and Warranties. The Borrower represents and
warrants to the Agent and the Lenders that: (a) the representations and
warranties made in the Credit Agreement and in the other Loan Documents are true
and correct in all material respects on the date of the execution and delivery
hereof by the Borrower with the same effect as if made on

 

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such date (except to the extent relating solely to a specific earlier date, in
which case they were true and correct as of such earlier date); (b) no Default
exists or will result from the effectiveness of this Amendment; (c) no material
adverse change has occurred with respect to the business, assets, liabilities
(actual or contingent), operations, condition (financial or otherwise) or
prospects of the Borrower (individually) or the Borrower and its Subsidiaries
(taken as a whole) since February 3, 2002; (d) the execution and delivery by the
Borrower of this Amendment and the performance by the Borrower of its
obligations under the Credit Agreement, as amended hereby (the “Amended Credit
Agreement”), (i) are within the corporate powers of the Borrower, (ii) have been
duly authorized by all necessary corporate action, (iii) have received all
necessary approval from any Governmental Authority and (iv) do not and will not
contravene or conflict with any provision of any law, rule or regulation or any
order, decree, judgment or award which is binding on the Borrower or any of its
Subsidiaries or of any provision of the certificate of incorporation or bylaws
or other organizational documents of the Borrower or any of its Subsidiaries or
any agreement, indenture, instrument or other document which is binding on the
Borrower or any of its Subsidiaries; and (e) the Amended Credit Agreement is the
legal, valid and binding obligation of the Borrower, enforceable against the
Borrower in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency or similar laws affecting the enforcement
of creditors’ rights generally or by equitable principles relating to
enforceability.

     SECTION 3. Effectiveness.

     3.1 Effectiveness. The amendments to the Credit Agreement set forth in
Section 1 above shall become effective on the date (the “Amendment Effective
Date”) on which the Agent shall have received (a) counterparts of this Amendment
executed by the Borrower and the Required Lenders, (b) for each Lender that has
executed and delivered to the Agent a counterpart of this Amendment prior to
5:00 p.m. (Chicago time) on January 29, 2004, an amendment fee equal to $2,500
and (c) each of the following documents, each in form and substance satisfactory
to the Agent:

          (i) Confirmation. Counterparts of the Confirmation, substantially in
the form of Exhibit A, executed by each Guarantor.

          (ii) Other Documents. Such other documents as the Agent or any Lender
may reasonably request.

     SECTION 4. Miscellaneous.

     4.1 Continuing Effectiveness, etc. As herein amended, the Credit Agreement
shall remain in full force and effect and is hereby ratified and confirmed in
all respects. After the effectiveness of any amendment set forth herein, all
references in the Credit Agreement, the Notes, each other Loan Document and any
similar document to the “Credit Agreement” or any similar term shall refer to
the Credit Agreement as amended hereby.

     4.2 Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original but all such counterparts
shall together constitute one and the same Amendment.

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     4.3 Expenses. The Borrower agrees to pay the reasonable costs and expenses
of the Agent (including reasonable fees and disbursements of counsel, including
the allocable costs of internal legal services and all disbursements of internal
legal counsel) in connection with the preparation, execution and delivery of
this Amendment.

     4.4 Governing Law. This Amendment shall be a contract made under and
governed by the laws of the State of California applicable to contracts made and
to be wholly performed within the State of California.

     4.5 Successors and Assigns. This Amendment shall be binding upon the
Borrower, the Lenders and the Agent and their respective successors and assigns,
and shall inure to the benefit of the Borrower, the Lenders and the Agent and
the successors and assigns of the Lenders and the Agent.

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Delivered as of the day and year first above written.

              WILLIAMS-SONOMA, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Title: EVP & CFO
 
            BANK OF AMERICA, N.A., as Agent
 
       

  By:   /s/ Tiffany Shin

     

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    Title: AVP
 
            BANK OF AMERICA, N.A., as a Lender and as
L/C Issuer
 
       

  By:   /s/ Lisa M. Thomas

     

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    Title: Senior Vice President
 
            FLEET NATIONAL BANK, as a Lender
 
       

  By:   /s/ Stephen Garvin

     

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    Title: Managing Director
 
            THE BANK OF NEW YORK, as a Lender
 
       

  By:   /s/ Randolph E.J. Medrano

     

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    Title: Vice President

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              WELLS FARGO BANK, N.A., as a Lender
 
       

  By:   /s/ Jeff Bailard

     

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    Title: Vice President
 
            JPMORGAN CHASE BANK, as a Lender
 
       

  By:   /s/ James A. Knight

     

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    Title: Vice President
 
            UNION BANK OF CALIFORNIA, N.A., as a Lender
 
       

  By:   /s/ Theresa L. Rocha

     

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    Title: Vice President
 
            U.S. BANK NATIONAL ASSOCIATION, as a Lender
 
       

  By:   /s/ Gregory Dryden

     

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    Title: Vice President
 
            NATIONAL CITY BANK, as a Lender
 
       

  By:   /s/ Joe Kwasny

     

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    Title: Vice President

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Exhibit A

CONFIRMATION

Dated as of January 29, 2004

    To: Bank of America, N.A., individually and as Agent, and the other
financial institutions party to the Credit Agreement referred to below

     Please refer to: (a) the Second Amended and Restated Credit Agreement dated
as of October 22, 2002 (the “Credit Agreement”) among Williams-Sonoma, Inc., a
California corporation (the “Borrower”), various financial institutions (the
“Lenders”) and Bank of America, N.A., as Agent (the “Agent”); (b) the Subsidiary
Guaranty dated as of August 23, 2000 made by the subsidiaries of the Borrower in
favor of the Agent (the “Guaranty”); and (c) the First Amendment dated as of
January 29, 2004 to the Credit Agreement (the “First Amendment”).

     Each of the undersigned hereby confirms to the Agent and the Lenders that,
after giving effect to the First Amendment and the transactions contemplated
thereby, the Guaranty continues in full force and effect and is the legal, valid
and binding obligation of such undersigned, enforceable against such undersigned
in accordance with its terms.

     This Confirmation shall be governed by the internal laws of the State of
California.

              WILLIAMS-SONOMA STORES, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO
 
            WILLIAMS-SONOMA STORES, LLC
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO
 
            HOLD EVERYTHING, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO

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              POTTERY BARN, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO
 
            POTTERY BARN KIDS, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam,
Title: EVP & CFO
 
            CHAMBERS CATALOG COMPANY, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO
 
            WILLIAMS-SONOMA RETAIL SERVICES, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO
 
            WILLIAMS-SONOMA DIRECT, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO
 
            WEST ELM, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO

A-2

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              WILLIAMS-SONOMA PUBLISHING, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO
 
            POTTERY BARN TEEN, INC.
 
       

  By:   /s/ Sharon L. McCollam

     

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    Name: Sharon L. McCollam
Title: EVP & CFO

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