Exhibit 10.1

AMENDMENT NO. 1 TO THE

CREDIT AGREEMENT

AMENDMENT NO. 1 TO THE CREDIT AGREEMENT (this “Amendment”), dated as of May 18,
2007, among The Gap, Inc., a Delaware corporation (the “Borrower”), the
Subsidiaries of the Borrower parties to the Credit Agreement (defined below) as
the LC Subsidiaries (the “LC Subsidiaries”), the Subsidiaries of the Borrower
parties to the Credit Agreement as the Subsidiary Borrowers (the “Subsidiary
Borrowers”), the banks, financial institutions and other institutional lenders
parties as lenders and swingline lenders to the Credit Agreement referred to
below (collectively, the “Lenders”), the Issuing Banks (as hereinafter defined)
and Citicorp USA, Inc., as agent (the “Agent”) for the Lenders.

PRELIMINARY STATEMENTS:

(1) The Borrower, the LC Subsidiaries, the Subsidiary Borrowers, the banks party
thereto as issuing banks (the “Issuing Banks”), Citigroup Global Markets Inc.
and Banc of America Securities LLC, as Joint Lead Arrangers, Bank of America,
N.A., HSBC Bank USA, National Association and JPMorgan Chase Bank, as
Co-Syndication Agents, the Lenders and the Agent have entered into a Credit
Agreement dated as of August 30, 2004, (the “Credit Agreement”). Capitalized
terms not otherwise defined in this Amendment have the same meanings as
specified in the Credit Agreement.

(2) The Borrower, the LC Subsidiaries, the Subsidiary Borrowers, the Issuing
Banks, the Lenders and the Agent have agreed to amend the Credit Agreement as
hereinafter set forth.

(3) The Lenders, the Issuing Banks and the Agent are, on the terms and
conditions stated below, willing to grant the request of the Borrower, the LC
Subsidiaries and the Subsidiary Borrowers, and the Borrower, the LC Subsidiaries
and the Subsidiary Borrowers, the Lenders, the Issuing Banks and the Agent have
agreed to amend the Credit Agreement as hereinafter set forth.

SECTION 1. Amendments to Credit Agreement. The Credit Agreement is, effective as
of the date hereof and subject to the satisfaction of the conditions precedent
set forth in Section 2, hereby amended as follows:

(a) The definition of “Applicable Letter of Credit Fee” in Section 1.01 is
amended in full to read as follows:

“ ‘Applicable Letter of Credit Fee’ means as of any date, a percentage per annum
determined by reference to the applicable Performance Level in effect on such
date as set forth below:

 

PERFORMANCE LEVEL

   LEVEL 1     LEVEL 2     LEVEL 3     LEVEL 4     LEVEL 5     LEVEL 6  

Applicable Letter of Credit Fee

   .125 %   .150 %   .200 %   .250 %   .300 %   .350 %

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(b) The definition of “Termination Date” in Section 1.01 is amended by deleting
the date “August 30, 2009” therein and replacing it with the date “August 30,
2012”.

(c) Section 3.06(a) is amended by deleting the words “on the last day” therein
and replacing them with the words “no later than 30 days after the last day”.

(d) Section 7.02(a)(vi) is amended by deleting the number “$1,600,000,000”
therein and replacing it with the number “$750,000,000”.

(e) Section 7.04(c) is amended by deleting the words “or treasurer” therein and
substituting therefor the words “, treasurer or assistant treasurer”.

(f) Schedule I-A is replaced by Annex 1 hereto.

SECTION 2. Conditions of Effectiveness. This Amendment shall become effective as
of the date first above written when, and only when, the Agent shall have
received (a) counterparts of this Amendment executed by the Borrower, each LC
Subsidiary, each Subsidiary Borrower, each Issuing Bank and all of the Lenders
or, as to any of the Lenders or Issuing Banks, advice satisfactory to the Agent
that such Lender or Issuing Bank has executed this Amendment;

(b) all of the following documents, each such document (unless otherwise
specified) dated the date of receipt thereof by the Agent (unless otherwise
specified) and in sufficient copies for each Lender, in form and substance
satisfactory to the Agent (unless otherwise specified) and in sufficient copies
for each Lender:

(i) to the extent needed, an updated certificate of the Secretary or an
Assistant Secretary of each domestic Loan Party certifying the names and true
signatures of the officers authorized to sign this Amendment and the other
documents to be delivered hereunder,

(ii) certified copies of the resolutions of the board of directors (or persons
performing similar functions) of each domestic Loan Party authorizing the
transactions contemplated by this Amendment,

(iii) a favorable opinion of General Counsel or Associate General Counsel to the
Loan Parties, in substantially the form of the respective opinion delivered in
connection with the Credit Agreement, and as to such other matters as any Lender
through the Agent may reasonably request,

(iv) a favorable opinion of Orrick, Herrington & Sutcliffe LLP, special New York
counsel to the Loan Parties, in substantially the form of the respective opinion
delivered in connection with the Credit Agreement and as to such other matters
as any Lender through the Agent may reasonably request, and

(v) a favorable opinion of Shearman & Sterling LLP, counsel for the Agent, in
form and substance satisfactory to the Agent; and

 

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(c) on behalf of each Lender that has delivered an executed copy of this
Amendment to the Agent no later than 5:00 p.m. (New York City time) on May 18,
2007, a fee from the Borrower equal to 0.025% of the Commitment of such Lender
as set forth on Annex I hereto; and

(d) no later than 120 days following the satisfaction of the conditions in
subclauses (a), (b) and (c) above, certified copies of the resolutions of the
board of directors (or persons performing similar functions) of each Loan Party
which is a Foreign Subsidiary authorizing the transactions contemplated by this
Amendment; provided, however, the compliance with the conditions in this clause
(d) shall constitute a condition subsequent, but not a condition precedent, to
this Amendment which is subject to the satisfaction of clauses (a), (b) and
(c) above.

SECTION 3. Representations and Warranties of the Borrower. The Borrower
represents and warrants as follows:

(a) Corporate Status. Each Loan Party is duly organized or formed, validly
existing and in good standing under the laws of its jurisdiction of
incorporation or organization and possesses all powers (corporate or otherwise)
and all other authorizations and licenses necessary to carry on its business,
except where the failure to so possess would not have a Material Adverse Effect.

(b) Corporate Authority; Non-Contravention. The execution, delivery and
performance by each Loan Party of this Amendment and the consummation of the
transactions contemplated hereby are within such Loan Party’s respective powers
(corporate or otherwise), have been duly authorized by all necessary action
(corporate or otherwise), and do not (i) contravene such Loan Party’s
Constitutive Documents, (ii) violate any Requirements of Law, (iii) conflict
with or result in the breach of, or constitute a default or require any payment
to be made under, any material contract, loan agreement, indenture, mortgage,
deed of trust, lease or other material instrument binding on or affecting any
Loan Party or any of its properties or (iv) result in or require the creation or
imposition of any Lien upon or with respect to any of the properties of any Loan
Party. No Loan Party is in violation of any such Requirements of Law or in
breach of any such contract, loan agreement, indenture, mortgage, deed of trust,
lease or other instrument, the violation or breach of which would be reasonably
likely to have a Material Adverse Effect.

(c) Authorization. No authorization or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body is
required for the due execution, delivery and performance by any Loan Party of
this Amendment.

(d) Binding Effect. Each of this Amendment and the Credit Agreement, as amended
by this Amendment, is the legal, valid and binding obligation of each Loan Party
enforceable against such Loan Party in accordance with its terms, except as
limited by bankruptcy, insolvency or other laws of general application relating
to or affecting the enforcement of creditors’ rights generally and general
principles of equity (regardless of whether considered in a proceeding in equity
or at law).

 

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(e) Litigation. There is no pending or, to the Borrower’s knowledge, threatened
action or proceeding affecting the Borrower or any of its Subsidiaries before
any court, governmental agency or arbitrator, (i) which has a reasonable
probability (taking into account the exhaustion of all appeals and the assertion
of all defenses) of having a Material Adverse Effect or (ii) which purports to
affect the legality, validity or enforceability of this Amendment.

(f) Financial Statements. The Consolidated balance sheets of the Borrower and
its Subsidiaries as of February 3, 2007, and the related Consolidated statements
of income and retained earnings of the Borrower and its Subsidiaries for the
Fiscal Year then ended, certified by Deloitte & Touche LLP, copies of which have
been furnished to each Lender Party, fairly present the Consolidated financial
condition of the Borrower and its Subsidiaries as at such date and the results
of the operations of the Borrower and its Subsidiaries for the period ended on
such date, all in accordance with GAAP consistently applied.

(g) Material Adverse Change. Since February 3, 2007, there has been no Material
Adverse Change.

SECTION 4. Reference to and Effect on the Credit Agreement and the Loan
Documents. (a) On and after the effectiveness of this Amendment, each reference
in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of
like import referring to the Credit Agreement, and each reference in the Notes
and each of 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 amended by this Amendment.

(b) The Credit Agreement, as specifically amended by this Amendment, is and
shall continue to be in full force and effect and is hereby in all respects
ratified and confirmed.

(c) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of any Lender or the Agent under the Credit Agreement, nor constitute a
waiver of any provision of the Credit Agreement.

SECTION 5. Costs and Expenses. The Borrower agrees to pay on demand all
reasonable and documented costs and expenses of the Agent in connection with the
preparation, execution, delivery and administration, modification and amendment
of this Amendment and the other documents to be delivered hereunder (including,
without limitation, the reasonable fees and expenses of counsel for the Agent).

SECTION 6. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute but one and the same agreement. Delivery
of an executed counterpart of a signature page to this Amendment by telecopier
shall be effective as delivery of a manually executed counterpart of this
Amendment.

 

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SECTION 7. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

 

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

 

THE BORROWER

THE GAP, INC.

By

 

/s/ Sabrina Simmons

Name:

  Sabrina Simmons

Title:

  Senior Vice President – Finance and Treasurer THE LC SUBSIDIARIES

BANANA REPUBLIC, LLC

By

 

/s/ Sabrina Simmons

Name:

  Sabrina Simmons

Title:

  Senior Vice President – Finance and Treasurer

GPS CONSUMER DIRECT, INC.

By

 

/s/ Sabrina Simmons

Name:

  Sabrina Simmons

Title:

  Senior Vice President – Finance and Treasurer

GAP (CANADA) INC.

By

 

/s/ Sabrina Simmons

Name:

  Sabrina Simmons

Title:

  Senior Vice President – Finance and Treasurer

 

Signature Page Amendment No. 1 to the Credit Agreement

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GAP (FRANCE) S.A.S.

By

 

/s/ Lisa D. Mertens

Name:

  Lisa D. Mertens

Title:

  President

GAP (JAPAN) K.K.

By

 

/s/ Thomas J. Lima

Name:

  Thomas J. Lima

Title:

  Director

GAP (NETHERLANDS) B.V.

By

 

/s/ Lisa D. Mertens

Name:

  Lisa D. Mertens

Title:

  Director

GPS (GREAT BRITAIN) LIMITED

By

 

/s/ Byron H. Pollitt, Jr.

Name:

  Byron H. Pollitt, Jr.

Title:

  Director

OLD NAVY (CANADA) INC.

By

 

/s/ Sabrina Simmons

Name:

  Sabrina Simmons

Title:

  Senior Vice President – Finance and Treasurer

 

Signature Page Amendment No. 1 to the Credit Agreement

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SUBSIDIARY BORROWERS

GAP (CANADA) INC.

By

 

/s/ Sabrina Simmons

Name:

  Sabrina Simmons

Title:

  Senior Vice President – Finance and Treasurer

GAP (FRANCE) S.A.S.

By

 

/s/ Lisa D. Mertens

Name:

  Lisa D. Mertens

Title:

  President

GAP (JAPAN) K.K.

By

 

/s/ Thomas J. Lima

Name:

  Thomas J. Lima

Title:

  Director

GAP (NETHERLANDS) B.V.

By

 

/s/ Lisa D. Mertens

Name:

  Lisa D. Mertens

Title:

  Director

GPS (GREAT BRITAIN) LIMITED

By

 

/s/ Byron H. Pollitt, Jr.

Name:

  Byron H. Pollitt, Jr.

Title:

  Director

 

Signature Page Amendment No. 1 to the Credit Agreement

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OLD NAVY (CANADA) INC.

By

 

/s/ Sabrina Simmons

Name:

  Sabrina Simmons

Title:

  Senior Vice President – Finance and Treasurer

 

Signature Page Amendment No. 1 to the Credit Agreement

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THE AGENT:

CITICORP USA, INC.

By  

/s/ Marc Merlino

Name:   Marc Merlino Title:   Managing Director and V.P.

 

Signature Page Amendment No. 1 to the Credit Agreement

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THE LENDERS

CITICORP USA, INC.

By  

/s/ Marc Merlino

Name:   Marc Merlino Title:   Managing Director and V.P. BANK OF AMERICA, N.A.
By  

/s/ Thomas J. Kane

Name:   Thomas J. Kane Title:   Senior Vice President HSBC BANK USA, NATIONAL
ASSOCIATION By  

/s/ Jeremy Bollington

Name:   Jeremy Bollington Title:   Managing Director THE BANK OF NOVA SCOTIA By
 

/s/ Mark Sparrow

Name:   Mark Sparrow Title:   Director GOLDMAN SACHS CREDIT PARTNERS L.P. By  

/s/ Mark Walton

Name:   Mark Walton Title:   Authorized Signatory

 

Signature Page Amendment No. 1 to the Credit Agreement

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U.S. BANK NATIONAL ASSOCIATION

By

 

/s/ Conan Schleicher

Name:

  Conan Schleicher

Title:

  Vice President

WELLS FARGO BANK, N.A.

By

 

/s/ Gavin S. Holles

Name:

  Gavin S. Holles

Title:

  Vice President

WACHOVIA NATIONAL ASSOCIATION

By

 

/s/ Susan T. Gallagher

Name:

  Susan T. Gallagher

Title:

  Vice President

THE FIFTH THIRD BANK

By

 

/s/ Gary S. Losey

Name:

  Gary S. Losey

Title:

  Vice President

 

Signature Page Amendment No. 1 to the Credit Agreement

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THE ISSUING BANKS:

CITIBANK, N.A.

By  

/s/ Marc Merlino

Name:   Marc Merlino Title:   Managing Director and V.P. BANK OF AMERICA, N.A.
By  

/s/ Thomas J. Kane

Name:   Thomas J. Kane Title:   Senior Vice President HSBC BANK USA, NATIONAL
ASSOCIATION By  

/s/ Jeremy Bollington

Name:   Jeremy Bollington Title:   Managing Director JPMORGAN CHASE BANK By  

/s/ Barry Bergman

Name:   Barry Bergman Title:   Managing Director

 

Signature Page Amendment No. 1 to the Credit Agreement

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SWING LINE LENDERS:

CITIBANK, N.A.

By  

/s/ Marc Merlino

Name:   Marc Merlino Title:   Managing Director and V.P. BANK OF AMERICA, N.A.
By  

/s/ Thomas J. Kane

Name:   Thomas J. Kane Title:   Senior Vice President HSBC BANK USA, NATIONAL
ASSOCIATION By  

/s/ Jeremy Bollington

Name:   Jeremy Bollington Title:   Managing Director JPMORGAN CHASE BANK By  

/s/ Barry Bergman

Name:   Barry Bergman Title:   Managing Director

BANK OF NOVA SCOTIA

By

 

/s/ Mark Sparrow

Name:

  Mark Sparrow

Title:

  Director

 

Signature Page Amendment No. 1 to the Credit Agreement

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ANNEX I

SCHEDULE I-A

COMMITMENT AMOUNTS

 

Entity

   Commitment    Issuing Commitment

Citicorp USA, Inc.

   $ 75,000,000.00      N/A

Bank of America, N.A.

   $ 75,000,000.00    $ 125,000,000.00

HSBC Bank USA, National Association

   $ 75,000,000.00    $ 125,000,000.00

JPMorgan Chase Bank

   $ 75,000,000.00    $ 125,000,000.00

The Bank of Nova Scotia

   $ 40,000,000.00      N/A

William Street Commitment Corporation

   $ 40,000,000.00      N/A

U.S. Bank National Association

   $ 40,000,000.00      N/A

Wells Fargo Bank, N.A.

   $ 40,000,000.00      N/A

Wachovia Bank, National Association

   $ 20,000,000.00      N/A

Fifth Third Bank

   $ 20,000,000.00      N/A

Citibank, N.A.

     N/A    $ 125,000,000.00              

Total

   $ 500,000,000.00    $ 500,000,000.00

 

Signature Page Amendment No. 1 to the Credit Agreement