Exhibit 10.55(a)

 

LEVI STRAUSS & CO.

LEVI STRAUSS FINANCE CENTER CORPORATION

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

This FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of
August 13, 2004 and entered into by and among Levi Strauss & Co., a Delaware
corporation ( “LS&Co”), Levi Strauss Financial Center Corporation, a Delaware
corporation (“LSFCC” and, together with LS&Co, the “Borrowers”), the financial
institutions listed on the signature pages hereof (the “Lenders”), and Bank of
America, N.A., as agent for the Lenders (the “Agent”), and, for purposes of
Section 5 hereof, the Loan Parties other than the Borrowers listed on the
signature pages hereof (the “Subsidiary Parties”), and is made with reference to
that certain Credit Agreement dated as of September 29, 2003, as amended by that
First Amendment to Credit Agreement dated as of September 30, 2003, that Second
Amendment to Credit Agreement dated as of October 14, 2003 and that Third
Amendment to Credit Agreement and Limited Waiver dated as of March 18, 2004 (the
“Credit Agreement”), by and among the parties thereto. Capitalized terms used
herein without definition shall have the same meanings herein as set forth in
the Credit Agreement.

 

RECITALS

 

WHEREAS, LS&Co has proposed to sell its Dockers® and Slates® business worldwide
(including, without limitation, all Dockers® and Slates® receivables, inventory
and intangible assets (including Dockers® IP Rights and Slates® IP Rights)) (the
“Transaction”) and has requested that the Majority Lenders agree to amend
certain covenants contained in Article 7 of the Credit Agreement to permit the
Transaction and to amend certain other provisions of the Credit Agreement, in
each case as provided herein.

 

WHEREAS, the Majority Lenders are, on the terms and conditions stated below,
willing to grant the request of LS&Co and LS&Co and the Majority Lenders have
agreed to amend the Credit Agreement as hereinafter set forth.

 

NOW, THEREFORE, in consideration of the premises and the agreements, provisions
and covenants herein contained, the parties hereto agree as follows:

 

Section 1. AMENDMENTS TO THE CREDIT AGREEMENT

 

1.1 The Credit Agreement is, effective as of the date hereof and subject to the
satisfaction of the conditions precedent set forth in Section 3.1 of this
Amendment, hereby amended as follows:

 

(a) Section 1.3(a) of the Credit Agreement is amended by inserting immediately
after the term “Existing Letter of Credit” the following:

 

“and any Cash Collateralized Letter of Credit”

 

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(b) Section 1.3(b) of the Credit Agreement is amended by (i) deleting the word
“or” at the end of Section 1.3(b)(ii) and (ii) adding the following immediately
before the period at the end of Section 1.3(b)(iii):

 

“; or (iv) in the case of any Cash Collateralized Letter of Credit (A) the sum
of the maximum face amount of the requested Cash Collateralized Letter of Credit
plus the aggregate undrawn amount of all outstanding Cash Collateralized Letters
of Credit plus, without duplication, the aggregate unpaid reimbursement
obligations with respect to all Cash Collateralized Letters of Credit, is
greater than (B) the aggregate amount of cash and Cash Equivalents held at such
time in the Cash Collateralized Letter of Credit Account”

 

(c) Section 1.3(c)(1) of the Credit Agreement is amended by (i) deleting the
word “and” in the parenthetical in such Section and (ii) adding the following
immediately before the end of such parenthetical:

 

“and whether the Letter of Credit to be issued is a Cash Collateralized Letter
of Credit”

 

(d) Section 1.3(g)(1) of the Credit Agreement is amended by inserting
immediately before the period at the end of the first sentence thereof the
following:

 

“, less the aggregate amount of cash and Cash Equivalents held on such date in
the Cash Collateralized Letter of Credit Account”

 

(e) Section 1.3 of the Credit Agreement is further amended by inserting the
following as new Section 1.3(h):

 

“(h) Authorization to Apply Proceeds from Cash Collateralized Letter of Credit
Account to Obligations Relating to Cash Collateralized Letters of Credit. The
Borrowers hereby authorize the Agent (without obligation) to apply any amount in
the Cash Collateralized Letter of Credit Account to pay (or reimburse any
payment of) any drawing on a Cash Collateralized Letter of Credit.”

 

(f) Section 2.6 of the Credit Agreement is amended to read in full as follows:

 

“2.6 Letter of Credit Fee. The Borrowers agree to pay:

 

(a) to the Agent, for the account of the Lenders, in accordance with their
respective Pro Rata Shares (i) for each Letter of Credit (excluding Cash
Collateralized Letters of Credit), a fee (the “Letter of Credit Fee”) equal to
two and three quarters percent (2.75%) per annum and (ii) for each Cash
Collateralized Letter of Credit, a fee (the “Cash Collateralized Letter of
Credit Fee”) equal to one and one quarter percent (1.25%) per annum;

 

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(b) to the Agent for the benefit of the Letter of Credit Issuer a fronting fee
of one-eighth of one percent (0.125%) per annum of the undrawn face amount of
each Letter of Credit; and

 

(c) to the Letter of Credit Issuer, all out-of-pocket costs, fees and expenses
incurred by the Letter of Credit Issuer in connection with the application for,
processing of, issuance of, or amendment to any Letter of Credit, which costs,
fees and expenses shall include a “fronting fee” payable to the Letter of Credit
Issuer.

 

The Letter of Credit Fee and the Cash Collateralized Letter of Credit Fee, as
applicable, shall be payable monthly in arrears on the first day of each month
following any month in which a Letter of Credit is outstanding and on the
Termination Date. The Letter of Credit Fee and the Cash Collateralized Letter of
Credit Fee each shall be computed on the basis of a 360-day year for the actual
number of days elapsed.”

 

(g) Section 3.7 of the Credit Agreement is amended by amending clause “sixth” in
the second sentence thereof to read in full as follows:

 

“sixth, to pay an amount to the Agent equal to one hundred and five percent
(105%) of the greatest amount for which all outstanding Letters of Credit and
Credit Supports may be drawn plus any fees and expenses associated with such
Letters of Credit and Credit Supports, to be held as cash collateral for such
Obligations, less the aggregate amount of cash and Cash Equivalents held on such
date in the Cash Collateralized Letter of Credit Account”

 

(h) Section 7.33(b) of the Credit Agreement is amended by inserting before the
period at the end of the last sentence thereof the following:

 

“; provided, further, that LS&Co may once, in its sole discretion at any time
prior to March 31, 2005, by notice to the Agent reduce the required amount of
Availability referenced in the foregoing proviso to $100,000,000, and such
required amount of Availability automatically shall be so reduced effective from
and after the Notice Date, provided, however, that if following the Notice Date
and before the date that is 90 days after the Notice Date LS&Co has not
voluntarily reduced the Commitments in accordance with Section 3.2(b) by at
least $200,000,000, then such required amount of Availability automatically
shall increase to $150,000,000 effective as of the date that is 90 days after
the Notice Date”

 

(i) Article 7 of the Credit Agreement is further amended by inserting the
following as new Section 7.35:

 

“7.35 Borrowing Base Cash Collateral Account; Cash Collateralized Letter of
Credit Account.

 

(a) On each Business Day that any cash or Cash Equivalents in the Borrowing Base
Cash Collateral Account is included in the Borrowing Base, LS&Co shall

 

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deliver to the Agent, in such detail as the Agent shall request, information
identifying the amounts of cash and Cash Equivalents held as of the end of the
immediately preceding Business Day in each account included in the Borrowing
Base Cash Collateral Account.

 

(b) No Borrower shall, nor shall any Borrower permit any of its Subsidiaries or
the LS&Co Trust to, withdraw any cash or Cash Equivalents from the Borrowing
Base Cash Collateral Account unless:

 

(i) Subject to Section 7.35(d), LS&Co has provided the Agent with at least one
Business Day prior notice of such withdrawal; and

 

(ii) after giving effect to such withdrawal, the Aggregate Revolver Outstandings
do not exceed Availability.

 

(c) No Borrower shall, nor shall any Borrower permit any of its Subsidiaries or
the LS&Co Trust to, withdraw any cash or Cash Equivalents from the Cash
Collateralized Letter of Credit Account unless:

 

(i) LS&Co has provided the Agent with at least one Business Day prior notice of
such withdrawal;

 

(ii) after giving effect to such withdrawal (i) the sum of the aggregate undrawn
amount of all outstanding Cash Collateralized Letters of Credit plus, without
duplication, the aggregate unpaid reimbursement obligations with respect to all
Cash Collateralized Letters of Credit, does not exceed (ii) the aggregate amount
of cash and Cash Equivalents held in the Cash Collateralized Letter of Credit
Account; and

 

(iii) after giving effect to such withdrawal, the Aggregate Revolver
Outstandings do not exceed Availability.

 

(d) If on any date Availability is less than $100,000,000, then on such date the
Borrowers shall deposit, or shall cause to be deposited, in the Cash
Collateralized Letter of Credit Account all amounts of cash and Cash Equivalents
in the Borrowing Base Cash Collateral Account that are included in the Borrowing
Base, and for the period beginning on such date and ending on the next Business
Day that Availability is greater than $100,000,000 the Borrowers shall maintain
all such amounts (but only to the extent such amounts are included in the
Borrowing Base) in the Cash Collateralized Letter of Credit Account.”

 

(j) Section 9.1(c) of the Credit Agreement is amended by amending clause (i)
thereof to read in full as follows:

 

“(i) any default shall occur in the observance or performance of any of the
covenants and agreements contained in Sections 5.2(h), 5.3, 7.2, 7.5, 7.12
through 7.33, or 7.35 or Section 11 of the Pledge and Security Agreement,”

 

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(k) Section 9.2(a) of the Credit Agreement is amended by amending clause (C)
thereof to read in full as follows:

 

“(C) require the Borrowers to cash collateralize all obligations under all
outstanding Letters of Credit and Credit Supports by paying an amount to the
Agent equal to one hundred and five percent (105%) of the greatest amount for
which such Letters of Credit and Credit Supports may be drawn plus any fees and
expenses associated with such Letters of Credit and Credit Supports, less the
aggregate amount of cash and Cash Equivalents held on such date in the Cash
Collateralized Letter of Credit Account”

 

(l) Annex A to the Credit Agreement is amended:

 

    (i) by amending the definitions of “Borrowing Base” and “Default Rate” to
read in full as follows, respectively:

 

“‘Borrowing Base’ means, at any time, an amount equal to (a) the sum of (i)
eighty five percent (85%) of the Net Amount of Eligible Accounts; plus (ii)
fifty percent (50%) of the value of Eligible Inventory that is in the form of
raw materials; plus (iii) the lesser of (A) (1) ninety percent (90%) of the
lower of cost or current market value of Eligible Inventory that is in the form
of finished goods (excluding Genco Goods) plus (2) fifty percent (50%) of the
lower of cost or current market value of Eligible Inventory that is in the form
of Genco Goods and (B) eighty percent (80%) of the appraised net liquidation
value of Eligible Inventory that is in the form of finished goods (including
Genco Goods); plus (iv) one hundred percent (100%) of the value of cash and Cash
Equivalents collectively held in the Borrowing Base Cash Collateral Account and
the Cash Collateralized Letter of Credit Account; minus (b) Reserves from time
to time established by the Agent in its reasonable credit judgment; provided
that the aggregate Revolving Loans advanced against Eligible Inventory shall not
exceed the Maximum Inventory Loan Amount.”

 

“‘Default Rate’ means a fluctuating per annum interest rate at all times equal
to the sum of (a) the otherwise applicable Interest Rate plus (b) two percent
(2%) per annum. Each Default Rate shall be adjusted simultaneously with any
change in the applicable Interest Rate. In addition, the Default Rate shall
result in an increase in each of the Letter of Credit Fee and the Cash
Collateralized Letter of Credit Fee by two percentage points per annum.”

 

    (ii) by amending clause (c)(ii) of the definition of “Minimum Condition” by
inserting at the end thereof the following:

 

“ provided, further, that LS&Co may once, in its sole discretion at any time
prior to March 31, 2005, by notice to the Agent reduce the required amounts of
average daily Availability and current Availability referenced in this clause
(ii) to $100,000,000, and upon the Agent’s receipt of such notice such required
amounts of average daily Availability and current Availability automatically
shall be deemed so reduced through and including the Stated Termination Date,
provided, however, that if following the Notice Date and before the date 90 days
after the Notice Date LS&Co has not voluntarily reduced the Commitments in
accordance

 

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with Section 3.2(b) by at least $200,000,000, then such required amounts of
average daily Availability and current Availability automatically shall increase
to $150,000,000 with effect as of the date 90 days after the Notice Date;”, and

 

    (iii) by adding the following definitions, which shall be inserted in the
correct alphabetical order:

 

“‘Borrowing Base Cash Collateral Account’ means, collectively, one or more
accounts of LS&Co, as designated from time to time by written notice from LS&Co
to the Agent, held with financial institutions and subject to control agreements
that (a) grant the Agent the right to assert control over such account or
accounts at any time during which Availability is less than $100,000,000 and (b)
are otherwise satisfactory in form and substance to the Agent.”

 

“‘Cash Collateralized Letter of Credit’ means a Letter of Credit requested to be
issued as a Cash Collateralized Letter of Credit in accordance with Section
1.3(c)(1) and otherwise issued in accordance with the conditions hereunder
applicable to a Cash Collateralized Letter of Credit.”

 

“‘Cash Collateralized Letter of Credit Account’ means, collectively, one or more
accounts of LS&Co held with the Bank and subject to blocked account agreements
satisfactory in form and substance to the Agent.”

 

“‘Cash Collateralized Letter of Credit Fee’ has the meaning specified in Section
2.6.”

 

“‘Notice Date’ means the date of receipt by the Agent of the notice from LS&Co
contemplated pursuant to Section 7.33(b) and clause (c)(ii) of the definition of
‘Minimum Condition’.”

 

1.2 The Credit Agreement is, effective as of the date of satisfaction of the
conditions precedent set forth in Section 3.2 of this Amendment, hereby amended
as follows:

 

(a) Section 7.17 of the Credit Agreement is amended by (i) deleting the word
“and” at the end of Section 7.17(o) and (ii) adding the following as new
Sections 7.17(q) and (r):

 

“(q) extensions of credit to the purchaser or purchasers of the Dockers® and
Slates® business in connection with the Dockers® Transaction (i) that remain
outstanding for a period not to exceed 60 days from the closing date of the
Dockers® Transaction or (ii) relating to the performance of any transition
services agreement or similar agreement entered into with such purchaser or
purchasers; and

 

(r) Investments by LS&Co in any of its Subsidiaries and Investments by any of
its Subsidiaries in LS&Co or any of its other Subsidiaries resulting from a
Disposition permitted under Section 7.20(r);”

 

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(b) Section 7.18(c) of the Credit Agreement is amended by (i) deleting the word
“and” at the end of Section 7.18(c)(xvii), (ii) adding the word “and” at the end
of Section 7.18(c)(xviii) and (iii) adding the following as new Section
7.18(c)(xix):

 

“(xix) Debt of LS&Co to any of its Subsidiaries or Debt of any of its
Subsidiaries to LS&Co or any of its other Subsidiaries resulting from a
Disposition permitted under Section 7.20(r);”

 

(c) Section 7.19(f) of the Credit Agreement is amended by deleting the words “or
7.20(m)” at the end thereof and replacing those words with the following:

 

“, 7.20(m) or 7.20(r).”

 

(d) Section 7.20 of the Credit Agreement is amended by (i) deleting the word
“and” at the end of Section 7.20(o), (ii) adding the word “and” at the end of
Section 7.20(q) and (iii) adding the following as new Section 7.20(r):

 

“(r) the Dockers® Transaction; provided that (i) at the time of any such
Disposition, no Default or Event of Default shall exist or shall result from
such Disposition; (ii) the consideration received for such Disposition shall be
in an amount at least equal to the fair market value of the assets sold,
transferred, licensed or otherwise disposed of; (iii) at least seventy five
percent (75%) of the consideration received for such Disposition shall be cash;
and (iv) the fair market value of the Collateral (excluding pledged equity of
Subsidiaries of LS&Co) immediately after giving pro forma effect to the Dockers®
Transaction and any intercompany Investments and intercompany Debt resulting
from the Dockers® Transaction shall be no less than the fair market value of the
Collateral (excluding pledged equity of Subsidiaries of LS&Co) immediately
before giving effect to the Dockers® Transaction and any intercompany
Investments and intercompany Debt resulting from the Dockers® Transaction;”

 

(e) Section 7.27 of the Credit Agreement is amended by (i) deleting the word
“and” immediately after Section 7.27(h), (ii) deleting the period at the end of
Section 7.27(i) and substituting “; and” therefor, and adding the following as
new Section 7.27(j):

 

“(j) the prepayment or other satisfaction of Debt prior to the scheduled
maturity thereof with all or any part of the Dockers® Proceeds.”

 

(f) Section 7.27 of the Credit Agreement is further amended by adding the
following sentence at the end thereof:

 

“Notwithstanding and in addition to the foregoing provisions of this Section
7.27 (but subject to Section 3.3), LS&Co and any of its Subsidiaries may apply
the Net Proceeds of Dispositions permitted pursuant to Section 7.20 to prepay,
redeem, purchase, repurchase, defease or otherwise satisfy prior to the
scheduled maturity thereof any Debt, provided that the aggregate amount of such
Net Proceeds so applied shall not exceed $50,000,000 in any Fiscal Year.”

 

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(g) Annex A to the Credit Agreement is amended by adding the following
definitions, which shall be inserted in the correct alphabetical order:

 

“‘Dockers® Proceeds’ means cash payments (including any cash received by way of
deferred payment pursuant to, or by monetization of, a note receivable or
otherwise, but only as and when so received) received by LS&Co or any of its
Subsidiaries from the Dockers® Transaction, less (a) transaction costs, fees and
expenses payable in connection with the Dockers® Transaction (including any fees
paid in connection with any amendments to financing arrangements to give effect
thereto) and (b) income taxes reasonably estimated to be paid in cash as a
result of any gain recognized in connection with the Dockers® Transaction.”

 

“‘Dockers® Transaction’ means the Disposition by LS&Co or any of its
Subsidiaries in one or more transactions of all or any part of the Dockers® and
Slates® business worldwide (including, without limitation, the Disposition of
all Dockers® and Slates® receivables, inventory and intangible assets (including
Dockers® IP Rights and Slates® IP Rights) and the entry into and performance of
related transition services agreements or similar agreements).”

 

(h) Exhibit A (Borrowing Base Certificate) is amended in full to read as set
forth on Exhibit A to this Amendment.

 

Section 2. LIMITED WAIVER

 

At the request of the Borrowers the undersigned Lenders, constituting Majority
Lenders under the Credit Agreement, hereby waive compliance with the provisions
of Section 7.30 of the Credit Agreement to the extent, and only to the extent,
necessary to permit LS&Co to amend Section 2.06 of the Term Loan Facility to
read in full as set forth on Annex A hereto.

 

Without limiting the generality of the provisions of Section 11.1 of the Credit
Agreement, the waiver set forth herein shall be limited precisely as written and
relates solely to the noncompliance by LS&Co with the provisions of Section 7.30
of the Credit Agreement in the manner and to the extent described above, and
nothing in this Amendment shall be deemed to (a) constitute a waiver of
compliance by any Borrower with respect to (i) Section 7.30 of the Credit
Agreement in any other instance or (ii) any other term, provision or condition
of the Credit Agreement or any other instrument or agreement referred to therein
or (b) prejudice any right or remedy that the Agent or any Lender may now have
or may have in the future under or in connection with the Credit Agreement or
any other instrument or agreement referred to therein.

 

Section 3. CONDITIONS OF EFFECTIVENESS

 

3.1 Section 1.1 of this Amendment shall be effective as of the date hereof upon
(a) receipt by the Agent of counterparts of this Amendment executed by the
Borrowers and the Majority Lenders or, as to any of the Lenders, advice
satisfactory to the Agent that such Lender has executed this Amendment and (b)
receipt by the Agent of a fee of $975,000, to be distributed by

 

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the Agent ratably to each Lender that executes and delivers this Amendment no
later than 5:00 p.m. New York time on August 13, 2004.

 

3.2 Section 1.2 of this Amendment shall be effective as of the date of
satisfaction of the conditions set forth under Section 3.1 hereof in addition to
the following conditions:

 

(a) receipt by the Agent of a certificate from LS&Co that all material
conditions to the consummation of the Dockers® Transaction (other than this
Amendment and an amendment to the Term Loan Facility to, among other things,
consent to the Dockers® Transaction (the “Term Loan Facility Amendment”)) have
been satisfied or waived and that the Dockers® Transaction will be consummated
promptly after the effectiveness of this Amendment; and

 

(b) receipt by the Agent of a fully executed copy of the Term Loan Facility
Amendment.

 

Section 4. COMPANY’S REPRESENTATIONS AND WARRANTIES

 

In order to induce the Lenders to enter into this Amendment and to amend the
Credit Agreement in the manner provided herein, each Borrower represents and
warrants to each Lender that the following statements are true, correct and
complete:

 

A. Due Incorporation, Valid Existence and Good Standing; Corporate Power and
Authority. Each Borrower is a corporation duly incorporated, validly existing
and in good standing under the laws of the State of Delaware. Each Borrower has
all requisite corporate power and authority to enter into this Amendment and to
carry out the transactions contemplated by, and perform its obligations under,
the Credit Agreement as amended by this Amendment (the “Amended Agreement”).

 

B. Authorization of Agreements. The execution and delivery of this Amendment and
the performance of the Amended Agreement have been duly authorized by all
necessary corporate action on the part of each Borrower.

 

C. No Conflict. The execution and delivery by each Borrower of this Amendment
and the performance by each Borrower of the Amended Agreement do not and will
not conflict with, or constitute a violation or breach of, or result in the
imposition of any Lien upon the property of such Borrower, by reason of the
terms of (a) any contract, mortgage, lease, agreement, indenture, or instrument
to which such Borrower is a party or which is binding upon it, (b) any
Requirement of Law applicable to such Borrower, or (c) the certificate or
articles of incorporation or by-laws of such Borrower.

 

D. Governmental Consents. No approval, consent, exemption, authorization, or
other action by, or notice to, or filing with, any Governmental Authority is
necessary or required in connection with the execution and delivery by, or
enforcement against, any Borrower of this Amendment, or the performance by, or
enforcement against, any Borrower of the Amended Agreement.

 

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E. Binding Obligation. This Amendment has been duly executed and delivered by
each Borrower and this Amendment and the Amended Agreement constitute the legal,
valid and binding obligations of each Borrower, enforceable against each
Borrower in accordance with their respective terms, except as may be limited by
applicable bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to
enforceability.

 

F. Absence of Default. No event has occurred and is continuing or will result
from the consummation of the transactions contemplated by this Amendment that
would constitute an Event of Default or a Default.

 

Section 5. ACKNOWLEDGEMENT AND CONSENT

 

Each Subsidiary Party hereby acknowledges and agrees that the Subsidiary
Guaranty and each of the Collateral Documents (collectively, the “Credit Support
Documents”) to which it is a party or otherwise bound shall continue in full
force and effect and that all of its obligations thereunder shall be valid and
enforceable and shall not be impaired or limited by the execution or
effectiveness of this Amendment. Each Subsidiary Party represents and warrants
that all representations and warranties contained in the Amended Agreement and
the Credit Support Documents to which it is a party or otherwise bound are true,
correct and complete in all material respects on and as of the Fourth Amendment
Effective Date to the same extent as though made on and as of that date, except
to the extent such representations and warranties specifically relate to an
earlier date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

 

Each Subsidiary Party acknowledges and agrees that (i) notwithstanding the
conditions to effectiveness set forth in this Amendment, such Subsidiary Party
is not required by the terms of the Credit Agreement or any other Loan Document
to consent to the amendments to the Credit Agreement effected pursuant to this
Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other
Loan Document shall be deemed to require the consent of such Subsidiary Party to
any future amendments to the Credit Agreement.

 

Section 6. MISCELLANEOUS

 

A. Reference to and Effect on the Credit Agreement and the Other Loan Documents.

 

(i) On and after the Fourth Amendment Effective Date, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words
of like import referring to the Credit Agreement, 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 Amended Agreement.

 

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    (ii) Except as specifically amended by this Amendment, the Credit Agreement
and the other Loan Documents shall remain in full force and effect and are
hereby ratified and confirmed.

 

    (iii) The execution, delivery and performance of this Amendment shall not,
except as expressly provided herein, constitute a waiver of any provision of, or
operate as a waiver of any right, power or remedy of the Agent or any Lender
under, the Credit Agreement or any of the other Loan Documents.

 

B. Fees and Expenses. Each Borrower acknowledges that all costs, fees and
expenses as described in Section 13.7 of the Credit Agreement incurred by the
Agent and its counsel with respect to this Amendment and the documents and
transactions contemplated hereby shall be for the account of the Borrowers.

 

C. Headings. Section and subsection headings in this Amendment are included
herein for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose or be given any substantive effect.

 

D. Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA APPLICABLE TO AGREEMENTS
MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE AGENT AND
EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

 

E. Counterparts. This Amendment may be executed in any number of counterparts,
and by each party hereto in separate counterparts, each of which shall be an
original, but all of which shall together constitute one and the same agreement;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document. This Amendment may be transmitted and/or signed by
telefacsimile. The effectiveness of any such signatures shall, subject to
applicable law, have the same force and effect as an original copy with manual
signatures and shall be binding on the Borrowers, the Agent and all Lenders. The
Agent may also require that any such signature be confirmed by a manually-signed
copy thereof; provided, however, that the failure to request or deliver any such
manually-signed copy shall not affect the effectiveness of any facsimile
signature.

 

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

 

BORROWERS: LEVI STRAUSS & CO.

By:

 

/s/ Joseph M.Maurer

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Name:

  Joseph M. Maurer

Title:

  Vice President and Treasurer LEVI STRAUSS FINANCIAL CENTER CORPORATION

By:

 

/s/ Joseph M.Maurer

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Name:

  Joseph M. Maurer

Title:

  Treasurer

 

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SUBSIDIARY PARTIES: BATTERY STREET ENTERPRISES, INC. By:  

/s/ Joseph M. Maurer

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Name:   Joseph M. Maurer Title:   Treasurer LEVI STRAUSS GLOBAL FULFILLMENT
SERVICES, INC. By:  

/s/ Joseph M. Maurer

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Name:   Joseph M. Maurer Title:   Treasurer LEVI STRAUSS GLOBAL OPERATIONS, INC.
By:  

/s/ Joseph M. Maurer

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Name:   Joseph M. Maurer Title:   Treasurer LEVI STRAUSS INTERNATIONAL By:  

/s/ Joseph M. Maurer

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

Name:   Joseph M. Maurer Title:   Treasurer LEVI STRAUSS INTERNATIONAL, INC. By:
 

/s/ Joseph M. Maurer

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

Name:   Joseph M. Maurer Title:   Treasurer

 

S-2   (Fourth Amendment to Credit Agreement)

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LEVI’S ONLY STORES, INC. By:  

/s/ Joseph M. Maurer

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Name:   Joseph M. Maurer Title:   Treasurer NF INDUSTRIES, INC. By:  

/s/ Joseph M. Maurer

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

Name:   Joseph M. Maurer Title:   Treasurer HARTWELL COMMODITIES GROUP By:  

/s/ Eileen VanEss

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

Name:   Eileen VanEss Title:   Treasurer LEVI STRAUSS-ARGENTINA, LLC By:  

/s/ Joseph M. Maurer

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

Name:   Joseph M. Maurer Title:   Treasurer
LEVI STRAUSS RECEIVABLES FUNDING, LLC By:  

/s/ Joseph M. Maurer

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

Name:   Joseph M. Maurer Title:   Treasurer LEVI STRAUSS SECURITIZATION CORP.
By:  

/s/ Joseph M. Maurer

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

Name:   Joseph M. Maurer Title:   Treasurer

 

S-3   (Fourth Amendment to Credit Agreement)

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

LEVI STRAUSS SERVICES INC. By:  

/s/ Joseph M. Maurer

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

Name:   Joseph M. Maurer Title:   Treasurer LEVI STRAUSS, U.S.A., LLC By:  

/s/ Joseph M. Maurer

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

Name:   Joseph M. Maurer Title:   Treasurer

 

S-4   (Fourth Amendment to Credit Agreement)

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LENDERS: BANK OF AMERICA, N.A., as Agent

By:

 

/s/ Michael R. Williamson

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

Name:

 

Michael R. Williamson

Title:

 

Senior Vice President

BANK OF AMERICA, N.A., as a Lender and as

Letter of Credit Issuer

By:

 

/s/ Michael R. Williamson

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

Name:

 

Michael R. Williamson

Title:

 

Senior Vice President

 

S-5   (Fourth Amendment to Credit Agreement)

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

 

[Other Lender Signature Pages to Be Provided Separately]

 

S-6   (Fourth Amendment to Credit Agreement)

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EXHIBIT A

 

BORROWING BASE CERTIFICATE

 

    Exhibit A-1         (Fourth Amendment to Credit Agreement)

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ANNEX A

 

SECTION 2.06 OF THE TERM LOAN FACILITY

 

Annex A-1   (Fourth Amendment to Credit Agreement)