Consent and Waiver to Exceed Capital Expenditure Limit under Loan and Security Agreement – The Gymboree Corporation and Fleet Retail Finance Inc.

Exhibit 10.48

The Gymboree Corporation

March 31, 2002                             

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 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.