Document:

Registration Rights Agreement

 Exhibit 4.2 
  
 LEVI STRAUSS & CO. 
  
 $450,000,000 
  
 9 3/4% Senior Notes Due 2015 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 December 22, 2004 
  
 Citigroup Global Markets Inc. 
 Banc of America
Securities LLC 
  
 As Representatives of the Initial Purchasers 
 c/o Citigroup Global Markets Inc. 
 388 Greenwich Street 
 New York, New York 10013 
  
 Ladies and Gentlemen: 
  
 Levi
Strauss & Co., a corporation organized under the laws of Delaware (the “Company”), proposes to issue and sell to certain purchasers (the “Initial Purchasers”), upon the terms set forth in a purchase agreement of even date
herewith (the “Purchase Agreement”), its $450,000,000 of 9 3/4% Senior Notes Due 2015 ( the
“Securities”) relating to the initial placement of the Securities (the “Initial Placement”). To induce the Initial Purchasers to enter into the Purchase Agreement and to satisfy a condition of your obligations thereunder, the
Company agrees with you for your benefit and the benefit of the holders from time to time of the Securities (including the Initial Purchasers) (each a “Holder” and, together, the “Holders”), as follows: 
  
 1. Definitions. Capitalized terms used herein without definition
shall have the respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following capitalized defined terms shall have the following meanings: 
  
 “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission
promulgated thereunder. 
  
 “Affiliate” of any specified
person shall mean any other person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such specified person. For purposes of this definition, control of a person shall mean the power, direct or
indirect, to direct or cause the direction of the management and policies of such person whether by contract or otherwise; and the terms “controlling” and “controlled” shall have meanings correlative to the foregoing. 

 
 “Broker-Dealer” shall mean any broker or dealer registered as
such under the Exchange Act. 

 “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by law to close in New York City. 
  
 “Commission” shall mean the Securities and Exchange Commission. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the
Commission promulgated thereunder. 
  
 “Exchange Offer
Prospectus” shall mean the prospectus included in the Exchange Offer Registration Statement, as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the New Securities covered by such
Exchange Offer Registration Statement, and all amendments and supplements thereto and all material incorporated by reference therein. 
  
 “Exchange Offer Registration Period” shall mean the 180-day period following the consummation of the Registered Exchange Offer, exclusive of any
period during which any stop order shall be in effect suspending the effectiveness of the Exchange Offer Registration Statement. 
  
 “Exchange Offer Registration Statement” shall mean a registration statement of the Company on an appropriate form under the Act with respect to
the Registered Exchange Offer, all amendments and supplements to such registration statement, including post-effective amendments thereto, in each case including the Exchange Offer Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein. 
  
 “Exchanging
Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for its own account as a result of market-making activities or other
trading activities (but not directly from the Company or any Affiliate of the Company). 
  
 “Holder” shall have the meaning set forth in the preamble hereto. 
  
 “Indenture” shall mean the indenture relating to the Securities, dated as of December 22, 2004, between the Company and Wilmington Trust Company
as trustee, as the same may be amended from time to time in accordance with the terms thereof. 
  
 “Initial Placement” shall have the meaning set forth in the preamble hereto. 
  
 “Initial Purchaser” shall have the meaning set forth in the preamble hereto. 
  
 “Losses” shall have the meaning set forth in Section 6(d) hereof. 
  
 “Majority Holders” shall mean the Holders of a majority of the
aggregate principal amount of Securities registered under a Registration Statement. 
  
 “Managing Underwriters” shall mean the investment banker or investment bankers and manager or managers that shall administer an underwritten offering. 
  

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 “New Securities” shall mean debt securities of the Company identical in all material respects
to the Securities (except that the interest rate step-up provisions and the transfer restrictions shall be modified or eliminated, as appropriate) and to be issued under the Indenture or the New Securities Indenture. 
  
 “New Securities Indenture” shall mean an indenture between the
Company and the New Securities Trustee, identical in all material respects to the Indenture (except that the interest rate step-up provisions will be modified or eliminated, as appropriate). 
  
 “New Securities Trustee” shall mean the Trustee or a bank or trust
company reasonably satisfactory to the Initial Purchasers, as trustee with respect to the New Securities under the New Securities Indenture. 
  
 “Prospectus” shall mean the prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Securities or the New Securities covered by such Registration Statement, and all amendments and supplements thereto and all material incorporated by reference therein. 
  
 “Purchase Agreement” shall have the meaning set forth in the preamble hereto. 
  
 “Registered Exchange Offer” shall mean the proposed offer of the
Company to issue and deliver to the Holders of the Securities that are not prohibited by any law or policy of the Commission from participating in such offer, in exchange for the Securities, a like aggregate principal amount of the New Securities.

  
 “Registration Statement” shall mean any Exchange
Offer Registration Statement or Shelf Registration Statement that covers any of the Securities or the New Securities pursuant to the provisions of this Agreement, any amendments and supplements to such registration statement, including
post-effective amendments (in each case including the Prospectus contained therein), all exhibits thereto and all material incorporated by reference therein. 
  
 “Securities” shall have the meaning set forth in the preamble hereto. 
  
 “Shelf Registration” shall mean a registration effected pursuant to Section 3 hereof. 
  
 “Shelf Registration Period” has the meaning set forth in Section
3(b) hereof. 
  
 “Shelf Registration Statement” shall
mean a “shelf” registration statement of the Company pursuant to the provisions of Section 3 hereof which covers some or all of the Securities or New Securities, as applicable, on an appropriate form under Rule 415 under the Act, or any
similar rule that may be adopted by the Commission, amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein. 
  

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 “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

  
 “underwriter” shall mean any underwriter of
Securities in connection with an offering thereof under a Shelf Registration Statement. 
  
 2. Registered Exchange Offer. (a) The Company shall prepare and, not later than 90 days following the date of the original issuance of the Securities, shall file with the Commission the Exchange Offer
Registration Statement with respect to the Registered Exchange Offer. The Company shall use its reasonable best efforts to cause the Exchange Offer Registration Statement to become effective under the Act within 180 days of the date of the original
issuance of the Securities. 
  
 (b) Upon the effectiveness of the
Exchange Offer Registration Statement, the Company shall promptly commence the Registered Exchange Offer, it being the objective of such Registered Exchange Offer to enable each Holder electing to exchange Securities for New Securities (assuming
that such Holder is not an Affiliate of the Company, acquires the New Securities in the ordinary course of such Holder’s business, has no arrangements with any person to participate in the distribution of the New Securities and is not
prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer) to trade such New Securities from and after their receipt without any limitations or restrictions under the Act and without material restrictions
under the securities laws of a substantial proportion of the several states of the United States. 
  
 (c) In connection with the Registered Exchange Offer, the Company shall: 
  
 (i) mail to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement,
together with an appropriate letter of transmittal and related documents; 
  
 (ii) keep the Registered Exchange Offer open for not less than 30 days and not more than 45 days after the date notice thereof is mailed to the Holders (or, in each case, longer if required by applicable law);

  
 (iii) use its reasonable best efforts to keep
the Exchange Offer Registration Statement continuously effective, supplemented and amended as required, under the Act to ensure that it is available for sales of New Securities by Exchanging Dealers during the Exchange Offer Registration Period;
provided that if any Initial Purchaser holds Securities that it acquired for its own account as a result of market-making activities or other trading activities (but not directly from the Company or any Affiliate of the Company) after the
expiration of the Exchange Offer Registration Period, that Initial Purchaser shall have the right, for 90 days immediately following the expiration of the Exchange Offer Registration Period, to request the Company to prepare a prospectus for use by
that Initial Purchaser for sales of New Securities, and the Company shall use its reasonable best efforts to prepare that prospectus for such use; 
  

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 (iv) utilize the services of a depositary for the Registered Exchange Offer with an
address in the Borough of Manhattan in New York City, which may be the Trustee, the New Securities Trustee or an Affiliate of either of them; 
  
 (v) permit Holders to withdraw tendered Securities at any time prior to the close of business, New York time, on the last Business Day on
which the Registered Exchange Offer is open; 
  
 (vi) prior to effectiveness of the Exchange Offer Registration Statement, if requested or required by the Commission, provide a supplemental letter to the Commission (A) stating that the Company is conducting the Registered Exchange Offer
in reliance on the position of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991); and (B) including a representation that the Company has not
entered into any arrangement or understanding with any person to distribute the New Securities to be received in the Registered Exchange Offer and that, to the best of the Company’s information and belief, each Holder participating in the
Registered Exchange Offer is acquiring the New Securities in the ordinary course of business and has no arrangement or understanding with any person to participate in the distribution of the New Securities; and 
  
 (vii) comply in all respects with all applicable laws.

  
 (d) As soon as practicable after the close of the Registered
Exchange Offer, the Company shall: 
  
 (i) accept
for exchange all Securities tendered and not validly withdrawn pursuant to the Registered Exchange Offer; 
  
 (ii) deliver to the Trustee for cancelation in accordance with Section 4(s) all Securities so accepted for exchange; and 
  
 (iii) cause the New Securities Trustee promptly to
authenticate and deliver to each Holder of Securities a principal amount of New Securities equal to the principal amount of the Securities of such Holder so accepted for exchange. 
  
 (e) Each Holder hereby acknowledges and agrees that any such Holder using the Registered Exchange Offer to participate in a
distribution of the New Securities (x) could not under Commission policy as in effect on the date of this Agreement rely on the position of the Commission in Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991) and Exxon Capital
Holdings Corporation (pub. avail. May 13, 1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply with the registration and prospectus delivery
requirements of the Act in connection with any secondary resale transaction which must be covered by an effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K
under the Act if the resales are of New Securities obtained by such Holder in exchange for Securities acquired by such Holder directly from the Company or one of its 
  

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 Affiliates. Accordingly, each Holder participating in the Registered Exchange Offer shall be required to represent to the
Company that, at the time of the consummation of the Registered Exchange Offer: 
  
 (i) any New Securities received by such Holder will be acquired in the ordinary course of business; 
  
 (ii) such Holder will have no arrangement or understanding
with any person to participate in the distribution of the Securities or the New Securities within the meaning of the Act; and 
  
 (iii) such Holder is not an Affiliate of the Company. 
  
 (f) If any Initial Purchaser determines that it is not eligible to participate in the Registered Exchange Offer with respect
to the exchange of Securities constituting any portion of an unsold allotment, at the request of such Initial Purchaser, the Company shall issue and deliver to such Initial Purchaser or the person purchasing New Securities registered under a Shelf
Registration Statement as contemplated by Section 3 hereof from such Initial Purchaser, in exchange for such Securities, a like principal amount of New Securities. The Company shall use its reasonable best efforts to cause the CUSIP Service Bureau
to issue the same CUSIP numbers for such New Securities as for New Securities issued pursuant to the Registered Exchange Offer. 
  
 3. Shelf Registration. (a) If (i) due to any change in law or applicable interpretations thereof by the Commission’s staff, the Company
determines upon advice of its outside counsel that it is not permitted to effect the Registered Exchange Offer as contemplated by Section 2 hereof; (ii) for any other reason the Exchange Offer Registration Statement is not declared effective within
180 days of the date of original issuance of the Securities or the Registered Exchange Offer is not consummated within 210 days of the date of original issuance of the Securities; (iii) any Initial Purchaser so requests within 45 days of
consummation of the Registered Exchange Offer with respect to Securities that are not eligible to be exchanged for New Securities in the Registered Exchange Offer and that are held by it following consummation of the Registered Exchange Offer; (iv)
any Holder (other than an Initial Purchaser) so requests within 45 days of consummation of the Registered Exchange Offer on the basis that such Holder was not eligible to participate in the Registered Exchange Offer or does not receive freely
tradeable New Securities in the Registered Exchange Offer other than by reason of such Holder being an Affiliate of the Company (it being understood that a requirement to deliver a Prospectus in connection with market-making activities or other
trading shall not result in the applicable securities not being “freely tradeable”); or (v) in the case of any Initial Purchaser that participates in the Registered Exchange Offer or acquires New Securities pursuant to Section 2(f) hereof,
such Initial Purchaser does not receive freely tradeable New Securities in exchange for Securities constituting any portion of an unsold allotment (it being understood that (x) the requirement that an Initial Purchaser deliver a Prospectus
containing the information required by Item 507 or 508 of Regulation S-K under the Act in connection with sales of New Securities acquired in exchange for such Securities shall result in such New Securities being not “freely tradeable”;
and (y) the requirement that an Exchanging Dealer deliver an Exchange Offer Prospectus in connection with sales of New Securities acquired in the Registered Exchange Offer in exchange for Securities acquired as a result of market-making activities
or other trading activities shall not result in such New Securities being not “freely tradeable”), the Company shall effect a Shelf Registration Statement in accordance with subsection (b) below. 
  

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 (b) (i) The Company shall as promptly as practicable (but in no event more than 60 days after so required
or requested pursuant to this Section 3), file with the Commission and thereafter shall cause to be declared effective under the Act a Shelf Registration Statement relating to the offer and sale of the Securities or the New Securities, as
applicable, by the Holders thereof from time to time in accordance with the methods of distribution elected by such Holders and set forth in such Shelf Registration Statement; provided, however, that no Holder (other than an Initial
Purchaser) shall be entitled to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all of the provisions of this Agreement applicable to such Holder; and provided
further, that with respect to New Securities received by an Initial Purchaser in exchange for Securities constituting any portion of an unsold allotment, the Company may, if permitted by current interpretations by the Commission’s staff,
file a post-effective amendment to the Exchange Offer Registration Statement containing the information required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of its obligations under this subsection with respect thereto, and
any such Exchange Offer Registration Statement, as so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a Shelf Registration Statement. 
  
 (ii) The Company shall use its reasonable best efforts to keep the Shelf Registration Statement continuously effective,
supplemented and amended as required by the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for a period of two years from the Closing Date or such shorter period that will terminate when all the Securities or New
Securities, as applicable, covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement (in any such case, such period being called the “Shelf Registration Period”). The Company shall be deemed
not to have used its reasonable best efforts to keep the Shelf Registration Statement effective during the requisite period if it voluntarily takes any action that would result in Holders of Securities covered thereby not being able to offer and
sell such Securities during that period, unless (A) such action is required by applicable law; or (B) such action is taken by the Company in good faith and for valid business reasons (not including avoidance of the Company’s obligations
hereunder), including the acquisition or divestiture of assets, so long as the Company promptly thereafter complies with the requirements of Section 4(k) hereof, if applicable. The Company is expressly permitted to suspend the effectiveness of the
Shelf Registration Statement in good faith in connection with the acquisition or divestiture of assets, so long as the Company promptly thereafter complies with the requirements of Section 4(k) hereof, if applicable. 
  
 4. Additional Registration Procedures. In connection with any Shelf
Registration Statement and, to the extent applicable, any Exchange Offer Registration Statement, the following provisions shall apply. 
  
 (a) The Company shall: 
  
 (i) furnish to you, not less than five Business Days prior to the filing thereof with the Commission, a copy of any Exchange Offer
Registration Statement and any Shelf Registration Statement, and each amendment thereof and each amendment or 
  

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 supplement, if any, to the Prospectus included therein (including all documents incorporated by reference
therein after the initial filing) and shall use its reasonable best efforts to reflect in each such document, when so filed with the Commission, such comments as you reasonably propose; 
  
 (ii) include the information set forth in Annex A hereto on the facing page of the Exchange Offer
Registration Statement, in Annex B hereto in the forepart of the Exchange Offer Registration Statement in a section setting forth details of the Exchange Offer, in Annex C hereto in the underwriting or plan of distribution section of the Prospectus
contained in the Exchange Offer Registration Statement, and in Annex D hereto in the letter of transmittal delivered pursuant to the Registered Exchange Offer; 
  

(iii) if requested by an Initial Purchaser, include the information required by Item 507 or 508 of Regulation S-K, as applicable, in
the Prospectus contained in the Exchange Offer Registration Statement; and 
  
 (iv) in the case of a Shelf Registration Statement, include the names of the Holders that propose to sell Securities pursuant to the Shelf Registration Statement as selling security holders. 
  
 (b) The Company shall ensure that: 
  
 (i) any Registration Statement and any amendment thereto and
any Prospectus forming part thereof and any amendment or supplement thereto complies in all material respects with the Act and the rules and regulations thereunder; 
  
 (ii) any Registration Statement and any amendment thereto does not, when it becomes effective, contain an
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that the Holders shall ensure that written information
furnished to the Company by or on behalf of any Holder specifically for inclusion in such Registration Statement and any amendment thereto, shall not contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; and 
  
 (iii) any Prospectus forming part of any Registration Statement, and any amendment or supplement to such Prospectus, does not include an
untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Holders
shall ensure that written information furnished to the Company by or on behalf of any Holder specifically for inclusion in such Registration Statement and any amendment thereto, shall not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not misleading. 
  
 (c) The Company shall advise you, the Holders of Securities covered by any Shelf Registration Statement and any Exchanging Dealer under any Exchange Offer
Registration 
  

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 Statement that has provided in writing to the Company a telephone or facsimile number and address for notices, and, if
requested by you or any such Holder or Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses (ii) through (v) hereof shall be accompanied by an instruction to suspend the use of the Prospectus until the Company
shall have remedied the basis for such suspension): 
  
 (i) when a Registration Statement and any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective amendment thereto has become effective; 
  
 (ii) of any request by the Commission for any amendment or
supplement to the Registration Statement or the Prospectus or for additional information; 
  
 (iii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of
any proceedings for that purpose; 
  
 (iv) of the
receipt by the Company of any notification with respect to the suspension of the qualification of the securities included therein for sale in any jurisdiction or the initiation of any proceeding for such purpose; and 
  
 (v) of the happening of any event that requires any change
in the Registration Statement or the Prospectus so that, as of such date, the statements therein are not misleading and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of
the Prospectus, in the light of the circumstances under which they were made) not misleading. 
  
 (d) The Company shall use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration Statement or the qualification of the securities therein for sale in any
jurisdiction at the earliest possible time. 
  
 (e) The Company
shall furnish to each Holder of Securities covered by any Shelf Registration Statement, without charge, at least one copy of such Shelf Registration Statement and any post-effective amendment thereto, including all material incorporated therein by
reference, and, if the Holder so requests in writing, all exhibits thereto (including exhibits incorporated by reference therein). 
  
 (f) The Company shall, during the Shelf Registration Period, deliver to each Holder of Securities covered by any Shelf Registration Statement, without
charge, as many copies of the Prospectus (including each preliminary Prospectus) included in such Shelf Registration Statement and any amendment or supplement thereto as such Holder may reasonably request. The Company consents to the use of the
Prospectus or any amendment or supplement thereto by each of the selling Holders of Securities in connection with the offering and sale of the Securities covered by the Prospectus, or any amendment or supplement thereto, included in the Shelf
Registration Statement. 
  

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 (g) The Company shall furnish to each Exchanging Dealer which so requests, without charge, at least one
copy of the Exchange Offer Registration Statement and any post-effective amendment thereto, including all material incorporated by reference therein, and, if the Exchanging Dealer so requests in writing, all exhibits thereto (including exhibits
incorporated by reference therein). 
  
 (h) The Company shall
promptly deliver to each Initial Purchaser, each Exchanging Dealer and each other person required to deliver a Prospectus during the Exchange Offer Registration Period, without charge, as many copies of the Prospectus included in such Exchange Offer
Registration Statement and any amendment or supplement thereto as any such person may reasonably request. The Company consents to the use of the Prospectus or any amendment or supplement thereto by any Initial Purchaser, any Exchanging Dealer and
any such other person that may be required to deliver a Prospectus following the Registered Exchange Offer in connection with the offering and sale of the New Securities covered by the Prospectus, or any amendment or supplement thereto, included in
the Exchange Offer Registration Statement. 
  
 (i) Prior to the
Registered Exchange Offer or any other offering of Securities pursuant to any Registration Statement, the Company shall arrange, if necessary, for the qualification of the Securities or the New Securities for sale under the laws of such United
States and European Union jurisdictions as any Holder shall reasonably request and will maintain such qualification in effect so long as required; provided that in no event shall the Company be obligated to qualify to do business in any
jurisdiction where it is not then so qualified or to take any action that would subject it to service of process in suits in any such jurisdiction where it is not then so subject. 
  
 (j) The Company shall cooperate with the Holders of Securities to facilitate the timely preparation and delivery of
certificates representing New Securities or Securities to be issued or sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as Holders may request. 
  
 (k) Upon the occurrence of any event contemplated by subsections (c)(ii)
through (v) above, the Company shall promptly prepare a post-effective amendment to the applicable Registration Statement or an amendment or supplement to the related Prospectus or file any other required document so that, as thereafter delivered to
Initial Purchasers of the securities included therein, the Prospectus will not include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading. In such circumstances, the period of effectiveness of the Exchange Offer Registration Statement provided for in Section 2 and the Shelf Registration Statement provided for in Section 3(b) shall each be extended by the
number of days from and including the date of the giving of a notice of suspension pursuant to Section 4(c) to and including the date when the Initial Purchasers, the Holders of the Securities and any known Exchanging Dealer shall have received such
amended or supplemented Prospectus pursuant to this Section. 
  
 (l) Not later than the effective date of any Registration Statement, the Company shall provide a CUSIP number for the Securities or the New Securities, as the case may be, 
  

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 registered under such Registration Statement and provide the Trustee with printed certificates for such Securities or New
Securities, in a form eligible for deposit with The Depository Trust Company. 
  
 (m) The Company shall comply with all applicable rules and regulations of the Commission and shall make generally available to its security holders as soon as practicable after the effective date of the applicable
Registration Statement an earnings statement satisfying the provisions of Section 11(a) of the Act. 
  
 (n) The Company shall cause the Indenture or the New Securities Indenture, as the case may be, to be qualified under the Trust Indenture Act in a timely
manner. 
  
 (o) The Company may require each Holder of Securities
to be sold pursuant to any Shelf Registration Statement to (i) furnish to the Company such information regarding the Holder and the distribution of such Securities as the Company may from time to time reasonably require for inclusion in such
Registration Statement and (ii) provide the indemnity contemplated by Section 6(b). The Company may exclude from such Shelf Registration Statement the Securities of any Holder that fails to furnish such information or fails to provide the indemnity
within a reasonable time after receiving such request. 
  
 (p) In
the case of any Shelf Registration Statement, the Company shall enter into such agreements (including if requested an underwriting agreement in customary form) and take all other reasonable, appropriate actions in order to expedite or facilitate the
registration or the disposition of the Securities, and in connection therewith, if an underwriting agreement is entered into, cause the same to contain indemnification provisions and procedures no less favorable than those set forth in Section 6 (or
such other provisions and procedures acceptable to the Majority Holders and the Managing Underwriters, if any) with respect to all parties to be indemnified pursuant to Section 6. 
  
 (q) In the case of any Shelf Registration Statement, the Company shall: 
  
 (i) make reasonably available for inspection by the Holders
of Securities to be registered thereunder, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney, accountant or other agent retained by the Holders or any such underwriter all relevant financial
and other records, pertinent corporate documents and properties of the Company and its subsidiaries; provided, however, that any information that is designated in writing by the Company, in good faith, as confidential at the time of
delivery of such information shall be kept confidential by the Holders or any such underwriter, attorney, accountant or agent, unless such disclosure is made in connection with a court proceeding or required by law, or such information becomes
available to the public generally or through a third party without an accompanying obligation of confidentiality; and provided further that the Company shall be entitled to coordinate such access to its financial and other records,
corporate documents and properties in a manner that does not unreasonably interfere with the business operations of the Company or its subsidiaries; 
  

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 (ii) cause the Company’s officers, directors and employees to supply all relevant
information reasonably requested by the Holders or any such underwriter, attorney, accountant or agent in connection with any such Registration Statement as is customary for similar due diligence examinations; provided, however, that
any information that is designated in writing by the Company, in good faith, as confidential at the time of delivery of such information shall be kept confidential by the Holders or any such underwriter, attorney, accountant or agent, unless such
disclosure is made in connection with a court proceeding or required by law, or such information becomes available to the public generally or through a third party without an accompanying obligation of confidentiality; and provided further that the
Company shall be entitled to respond to such information requests in a coordinated fashion such that such requests do not unreasonably interfere with the business operations of the Company or its subsidiaries; 
  
 (iii) make such representations and warranties to the
Holders of Securities registered thereunder and the underwriters, if any, in form, substance and scope as are customarily made by issuers to underwriters in primary underwritten offerings and covering matters including, but not limited to, those set
forth in the Purchase Agreement; 
  
 (iv) obtain
opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the Managing Underwriters, if any) addressed to each selling Holder and the underwriters, if any,
covering such matters as are customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such Holders and underwriters; 
  
 (v) obtain “cold comfort” letters and updates thereof from the independent certified public
accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to
be, included in the Registration Statement), addressed to each selling Holder of Securities registered thereunder and the underwriters, if any, in customary form and covering matters of the type customarily covered in “cold comfort”
letters in connection with primary underwritten offerings; and 
  
 (vi) deliver such documents and certificates as may be reasonably requested by the Majority Holders and the Managing Underwriters, if any, including those to evidence compliance with Section 4(k) and with any
customary conditions contained in the underwriting agreement or other agreement entered into by the Company. 
  
 The actions set forth in clauses (iii), (iv), (v) and (vi) of this subsection shall be performed at (A) the effectiveness of such Registration Statement and each post-effective amendment thereto; and (B) each closing
under any underwriting or similar agreement as and to the extent required thereunder. 
  
 (r) If a Registered Exchange Offer is to be consummated, upon delivery of the Securities by Holders to the Company (or to such other person as directed by the Company) in exchange for the New Securities, the Company
shall mark, or cause to be marked, on the Securities so exchanged that such Securities are being canceled in exchange for the New Securities. In no event shall the Securities be marked as paid or otherwise satisfied. 
  

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 (s) The Company will use its reasonable best efforts (i) if the Securities have been rated prior to the
initial sale of such Securities, to confirm such ratings will apply to the Securities or the New Securities, as the case may be, covered by a Registration Statement; or (ii) if the Securities were not previously rated, to cause the Securities
covered by a Registration Statement to be rated with at least one nationally recognized statistical rating agency, if so requested by Majority Holders with respect to the related Registration Statement or by any Managing Underwriters. 
  
 (t) In the event that any Broker-Dealer shall underwrite any Securities or
participate as a member of an underwriting syndicate or selling group or “assist in the distribution” (within the meaning of the Rules of Fair Practice and the By-Laws of the National Association of Securities Dealers, Inc.) thereof,
whether as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, assist such Broker-Dealer in complying with the requirements of such Rules and By-Laws, including,
without limitation, by: 
  
 (i) if such Rules or
By-Laws shall so require, engaging a “qualified independent underwriter” (as defined in such Rules) to participate in the preparation of the Registration Statement, to exercise usual standards of due diligence with respect thereto and, if
any portion of the offering contemplated by such Registration Statement is an underwritten offering or is made through a placement or sales agent, to recommend the yield of such Securities; 
  
 (ii) indemnifying any such qualified independent underwriter
to the extent of the indemnification of underwriters provided in Section 6 hereof; and 
  
 (iii) providing such information to such Broker-Dealer as may be required in order for such Broker-Dealer to comply with the requirements
of such Rules. 
  
 (u) The Company shall use its reasonable best
efforts to take all other steps necessary to effect the registration of the Securities or the New Securities, as the case may be, covered by a Registration Statement. 
  
 5. Registration Expenses. The Company shall bear all expenses incurred in connection with the performance of its
obligations under Sections 2, 3 and 4 hereof and, in the event of any Shelf Registration Statement, will reimburse the Holders for the reasonable fees and disbursements of one firm or counsel designated by the Majority Holders to act as counsel for
the Holders in connection therewith, and, in the case of any Exchange Offer Registration Statement, will reimburse the Initial Purchasers for the reasonable fees and disbursements of counsel acting in connection therewith. 
  
 6. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless each Holder of Securities or New Securities, as the case may be, covered by any Registration Statement (including each Initial Purchaser and, with respect to any Prospectus 
  

 13 

 delivery as contemplated in Section 4(h) hereof, each Exchanging Dealer), the directors, officers, employees and agents
of each such Holder and each person who controls any such Holder within the meaning of either the Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject
under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto,
or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and agrees to reimburse each such indemnified party, as
incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any case
to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any such Holder specifically for inclusion therein; and provided further, however, that with respect to any untrue statement or omission of a material fact made in a preliminary
Prospectus, the indemnity agreement contained in this Section 6(a) shall not inure to the benefit of any person to the extent that any such loss, claim, damage or liability of such person occurs under the circumstance where it shall have been
determined by a court of competent jurisdiction by final and nonappealable judgment that (i) the untrue statement or omission of a material fact contained in the preliminary Prospectus was corrected in the final Prospectus or in an amendment or
supplement thereto, (ii) the Company had previously furnished copies of the final Prospectus, amendment or supplement to such person and (iii) such loss, claim, damage or liability results from the fact that there was not sent or given by such
person at or prior to the written confirmation of the sale of such Securities, a copy of the final Prospectus, amendment or supplement. This indemnity agreement will be in addition to any liability which the Company may otherwise have. 

 
 The Company also agrees to indemnify or contribute as provided in Section
6(d) to Losses of each underwriter of Securities or New Securities, as the case may be, registered under a Shelf Registration Statement, their directors, officers, employees or agents and each person who controls such underwriter on substantially
the same basis as that of the indemnification of the Initial Purchasers and the selling Holders provided in this Section 6(a) and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as provided in
Section 4(p) hereof. 
  
 (b) Each Holder of securities covered by
a Registration Statement (including each Initial Purchaser and, with respect to any Prospectus delivery as contemplated in Section 4(h) hereof, each Exchanging Dealer) severally and not jointly agrees to indemnify and hold harmless the Company, each
of its directors, each of its officers who signs such Registration Statement and each person who controls the Company within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company to each
such Holder, but only with reference to written information relating to such Holder furnished to the Company by 
  

 14 

 or on behalf of such Holder specifically for inclusion in the documents referred to in the foregoing indemnity. This
indemnity agreement will be in addition to any liability which any such Holder may otherwise have. 
  
 (c) Promptly after receipt by an indemnified party under this Section of notice of the commencement of any action, such indemnified party will, if a claim
in respect thereof is to be made against the indemnifying party under this Section, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability
under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses; and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at
the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel
retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint
counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate
counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the
indemnifying party; (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the
indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or
consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding. The indemnifying party
shall not, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for fees and expenses of more than one separate
law firm of attorneys (in addition to any local counsel) for all indemnified parties and all such fees and expenses shall be reimbursed as incurred. Such firm shall be designated by Citigroup Global Markets Inc. in the case of the parties
indemnified pursuant to Section 6(a) and by the Company in the case of parties indemnified pursuant to Section 6(b). Each indemnified party shall use all reasonable efforts to cooperate with the indemnifying party in the defense of any such action
or claim. 
  

 15 

 (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section is unavailable to or
insufficient to hold harmless an indemnified party for any reason, then each applicable indemnifying party shall have a joint and several obligation to contribute to the aggregate losses, claims, damages and liabilities (including legal or other
expenses reasonably incurred in connection with investigating or defending same) (collectively “Losses”) to which such indemnified party may be subject in such proportion as is appropriate to reflect the relative benefits received by such
indemnifying party, on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the Registration Statement which resulted in such Losses; provided, however, that in no case shall any Initial Purchaser
or any subsequent Holder of any Security or New Security be responsible, in the aggregate, for any amount in excess of the purchase discount or commission applicable to such Security, or in the case of a New Security, applicable to the Security that
was exchangeable into such New Security, as set forth on the cover page of the Final Memorandum, nor shall any underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the securities purchased by
such underwriter under the Registration Statement which resulted in such Losses. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the indemnifying party and the indemnified party shall contribute in
such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of such indemnifying party, on the one hand, and such indemnified party, on the other hand, in connection with the statements or omissions which
resulted in such Losses as well as any other relevant equitable considerations. Benefits received by the Company shall be deemed to be equal to the total net proceeds from the Initial Placement (before deducting expenses) as set forth on the cover
page of the Final Memorandum. Benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as set forth on the cover page of the Final Memorandum, and benefits received by any other Holders
shall be deemed to be equal to the value of receiving Securities or New Securities, as applicable, registered under the Act or selling Securities or New Securities, as applicable, under a Shelf Registration Statement. Benefits received by any
underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set forth on the cover page of the Prospectus forming a part of the Registration Statement which resulted in such Losses. Relative fault shall be
determined by reference to, among other things, whether any alleged untrue statement or omission relates to information provided by the indemnifying party, on the one hand, or by the indemnified party, on the other hand, the intent of the parties
and their relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The parties agree that it would not be just and equitable if contribution were determined by pro rata allocation (even if
the Holders were treated as one entity for such purpose) or any other method of allocation which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d), no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section, each person who controls a Holder
within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of such Holder shall have the same rights to contribution as such Holder, and each person who controls the Company within the meaning of either
the Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and
conditions of this paragraph (d). 
  

 16 

 (e) The provisions of this Section will remain in full force and effect, regardless of any investigation
made by or on behalf of any Holder or the Company or any of the directors, officers, employees, agents or controlling persons referred to in this Section hereof, and will survive the sale by a Holder of securities covered by a Registration
Statement. 
  
 7. Underwritten Registrations. (a) If any of
the Securities or New Securities, as the case may be, covered by any Shelf Registration Statement are to be sold in an underwritten offering, the Managing Underwriters shall be selected by the Majority Holders, provided, however, that
such Managing Underwriters must be reasonably satisfactory to the Company. 
  
 (b) No person may participate in any underwritten offering pursuant to any Shelf Registration Statement, unless such person (i) agrees to sell such person’s Securities or New Securities, as the case may be, on
the basis reasonably provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements; (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting arrangements; and (iii) agrees to be bound by Section 6(b) hereof. 
  
 8. No Inconsistent Agreements. The Company has not, as of the date hereof, entered into, nor shall it, on or after the date hereof, enter into, any
agreement with respect to its securities that is inconsistent with the rights granted to the Holders herein or otherwise conflicts with the provisions hereof. 
  

9. Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, qualified, modified
or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of the Holders of at least a majority of the then outstanding aggregate principal amount of
Securities (or, after the consummation of any Registered Exchange Offer in accordance with Section 2 hereof, of New Securities); provided that, with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser
hereunder, the Company shall obtain the written consent of each such Initial Purchaser against which such amendment, qualification, supplement, waiver or consent is to be effective. Notwithstanding the foregoing (except the foregoing proviso), a
waiver or consent to departure from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant to a Registration Statement and that
does not directly or indirectly affect the rights of other Holders may be given by the Majority Holders, determined on the basis of Securities or New Securities, as the case may be, being sold rather than registered under such Registration
Statement. 
  
 10. Notices. All notices and other
communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail, telex, telecopier or air courier guaranteeing overnight delivery: 
  
 (a) if to a Holder, at the most current address given by such Holder to the Company in accordance with the provisions of
this Section, which address initially is, with respect to each Holder, the address of such Holder maintained by the Registrar under the Indenture, with a copy in like manner to Citigroup Global Markets Inc. 
  

 17 

 (b) if to you, initially at the respective addresses set forth in the Purchase Agreement; and 

 
 (c) if to the Company, initially at its address set forth in the Purchase
Agreement. 
  
 All such notices and communications shall be deemed
to have been duly given when received. 
  
 The Initial Purchasers
or the Company by notice to the other parties may designate additional or different addresses for subsequent notices or communications. 
  
 11. Successors. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including,
without the need for an express assignment or any consent by the Company thereto, subsequent Holders of Securities and the New Securities. The Company hereby agrees to extend the benefits of this Agreement to any Holder of Securities and the New
Securities, and any such Holder who receives and accepts any benefits of this Agreement and who is thereafter bound by the obligations of this Agreement may specifically enforce the provisions of this Agreement as if an original party hereto.
Notwithstanding the foregoing, nothing herein shall be deemed to permit any assignment, transfer or other disposition of Securities or New Securities in violation of the terms of the Purchase Agreement or the Indenture. Each Holder who receives and
accepts any benefits of this Agreement will be deemed to agree to be bound by and comply with the terms and provisions of this Agreement. 
  
 12. Counterparts. This Agreement may be in signed counterparts, each of which shall an original and all of which together shall constitute one and
the same agreement. 
  
 13. Headings. The headings used
herein are for convenience only and shall not affect the construction hereof. 
  
 14. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed in the State of New York. 

 
 15. Severability. In the event that any one of more of the
provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
  

 18 

 16. Securities Held by the Company, etc. Whenever the consent or approval of Holders of a
specified percentage of principal amount of Securities or New Securities is required hereunder, Securities or New Securities, as applicable, held by the Company or its Affiliates shall be disregarded and deemed not to be outstanding in determining
whether such consent or approval was given by the Holders of such required percentage. 
  
 If the foregoing is in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent a binding agreement
among the Company and the several Initial Purchasers. 
  
  

			
	Very truly yours,
	
	LEVI STRAUSS & CO.,
		
	 by
  
	 	

	Name:	 	 
	Title:	 	 

  

 19 

 The foregoing Agreement is hereby confirmed and accepted as of the date first above written. 
  
 Citigroup Global Markets Inc. 
 Banc of America Securities LLC 
  
 By: Citigroup
Global Markets Inc., 
  

			
	 By:
  
	 	

	Name:	 	 
	Title:	 	 

  
 For themselves and the other several
Initial Purchasers named in Schedule I to the Purchase Agreement. 
  

 20 

 ANNEX A 
  
 Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such New Securities. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the
Securities Act. This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of New Securities received in exchange for Securities where such Securities were acquired by such
Broker-Dealer as a result of market-making activities or other trading activities. The Company has agreed that, starting on the Expiration Date (as defined herein) and ending on the close of business 180 days after the Expiration Date, it will make
this Prospectus available to any Broker-Dealer for use in connection with any such resale. See “Plan of Distribution”. 

 ANNEXB 
  
 Each Broker-Dealer that receives New Securities for its own account in exchange for Securities, where such Securities were acquired by such Broker-Dealer
as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such New Securities. See “Plan of Distribution”. 

 ANNEX C 
  
 PLAN OF DISTRIBUTION 
  
 Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such New Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of New Securities received in exchange for Securities where such
Securities were acquired as a result of market-making activities or other trading activities. The Company has agreed that, starting on the Expiration Date and ending on the close of business 180 days after the Expiration Date, it will make this
Prospectus, as amended or supplemented, available to any Broker-Dealer for use in connection with any such resale. In addition, until
                    , 2005, all dealers effecting transactions in the New Securities may be required to deliver a prospectus. 
  
 The Company will not receive any proceeds from any sale of New Securities by
brokers-dealers. New Securities received by Broker-Dealers for their own account pursuant to the Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing
of options on the New Securities or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such resale may be made directly to
purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such Broker-Dealer and/or the purchasers of any such New Securities. Any Broker-Dealer that resells New Securities that
were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such New Securities may be deemed to be an “underwriter” within the meaning of the Securities Act and
any profit resulting from any such resale of New Securities and any commissions or concessions received by any such persons may be deemed to be underwriting compensation under the Securities Act. The Letter of Transmittal states that by
acknowledging that it will deliver and by delivering a prospectus, a Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act. 
  
 For a period of 180 days after the Expiration Date, the Company will promptly
send additional copies of this Prospectus and any amendment or supplement to this Prospectus to any Broker-Dealer that requests such documents in the Letter of Transmittal. The Company has agreed to pay all expenses incident to the Exchange Offer
(including the expenses of one counsel for the Holders of the Securities) other than commissions or concessions of any brokers or dealers and will indemnify the holders of the Securities (including any Broker-Dealers) against certain liabilities,
including liabilities under the Securities Act. 

 ANNEX D 
  
 Rider A 
  

			
	 ̈	  	CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.
	 	  	Name:                                     
                               
	 	  	Address:                                     
                            

  
 Rider B 
  
 If the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the
New Securities in the ordinary course of its business, it is not engaged in, and does not intend to engage in, a distribution of New Securities and it has no arrangements or understandings with any person to participate in a distribution of the New
Securities. If the undersigned is a Broker-Dealer that will receive New Securities for its own account in exchange for Securities, it represents that the Securities to be exchanged for New Securities were acquired by it as a result of market-making
activities or other trading activities and acknowledges that it will deliver a prospectus in connection with any resale of such New Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not be deemed to admit
that it is an “underwriter” within the meaning of the Securities Act.<PAGE>

                                                                   Exhibit 10.36

                          VELOCITY EXPRESS CORPORATION
                       CODE OF BUSINESS CONDUCT AND ETHICS

        Velocity Express Corporation (the "Company") is committed to the highest
standards of legal and ethical business conduct. The Company's employees should
always act lawfully, ethically, and in the best interests of the Company and its
shareholders. This Code of Business Conduct and Ethics (the "Code of Conduct")
summarizes the legal, ethical and regulatory standards that Velocity Express
Corporation must follow and is a reminder to our directors, officers and
employees, of the seriousness of that commitment. Compliance with this Code of
Conduct is mandatory for every director, officer and employee of the Company.

                                  INTRODUCTION

        Our business is becoming increasingly complex, both in terms of the
geographies in which we function and the laws with which we must comply. To help
our directors, officers and employees understand what is expected of them and to
carry out their responsibilities, we have created this Code of Business Conduct
and Ethics. Additionally, our General Counsel will have the responsibility of
overseeing our adherence to the Code of Conduct.

        This Code of Conduct is not intended to be a comprehensive guide to all
of our policies or to all your responsibilities under law or regulation. It
provides general parameters to help you resolve the ethical and legal issues you
encounter in conducting our business. Think of this Code of Conduct as a
guideline, or a minimum requirement, that must always be followed. If you have
any questions about anything in the Code of Conduct or appropriate actions in
light of the Code of Conduct, you may contact the General Counsel or the Chair
of the Audit Committee.

        We expect each of our directors, officers and employees to read and
become familiar with the ethical standards described in this Code of Conduct and
to affirm your agreement to adhere to these standards by signing the Compliance
Certificate that appears at the end of this Code of Conduct. Violations of the
law, our corporate policies, or this Code of Conduct may lead to disciplinary
action, including dismissal.

I.      We Comply With all Laws, Rules and Regulations

        We will comply with all laws and governmental regulations that are
applicable to our activities, and expect all our directors, officers and
employees to obey the law. Specifically, we are committed to:

        .       maintaining a safe and healthy work environment;

        .       promoting a workplace that is free from discrimination or
                harassment based on race, color, religion, sex, age, national
                origin, disability or other factors that are unrelated to the
                Company's business interests. For more information, see the
                Company's policies on Equal Employment Opportunity and Workplace
                Harassment in the Company's Employment Policies Handbook;

<PAGE>

        .       supporting fair competition and laws prohibiting restraints of
                trade and other unfair trade practices, including price fixing;

        .       conducting our activities in full compliance with all applicable
                environmental laws;

        .       keeping the political activities of our directors, officers and
                employees separate from our business;

        .       prohibiting any illegal payments, gifts, or gratuities to any
                government officials or political party;

        .       prohibiting the unauthorized use, reproduction, or distribution
                of any third party's trade secrets, copyrighted information or
                confidential information; and

        .       complying with all applicable state and federal securities laws.

Insider Trading Policy

        Federal and state laws prohibit trading in securities by persons who
have material information that is not generally known or available to the
public. Employees of the Company may not (a) trade in stock or other securities
while in possession of material nonpublic information or (b) pass on material
nonpublic information to others without express authorization by the Company or
recommend to others that they trade in stock or other securities based on
material nonpublic information.

        The Company has adopted guidelines designed to implement this policy.
All directors, officers and employees are expected to review and follow the
Velocity Insider Trading Guidelines. Certain employees must comply with trading
windows and/or pre-clearance requirements when they trade Velocity securities.

II.     We Insist on Honest and Ethical Conduct By All of Our Directors,
Officers, Employees and Other Representatives

        We have built our business based on excellence in services: not only
quality logistics services that improve the reliability and quality of
operations for multi-location blue chip customers, but quality employees and
representatives who adhere to the very highest standards of honesty, ethics and
fairness in our dealings with all of our business contacts. We place the highest
value on the integrity of our directors, our officers and our employees and
demand this level of integrity in all our dealings. We insist on not only
ethical dealings with others, but on the ethical handling of actual or apparent
conflicts of interest between personal and professional relationships.

Fair Dealing

        Directors, officers and employees are required to deal honestly and
fairly with our customers, suppliers, competitors and other third parties.

                                        2

<PAGE>

        Between you and our customers and suppliers. We market our technologies
and services fairly and vigorously based on our honesty, creativity and
ingenuity and the proven quality and reliability of our logistics services. In
our dealings with customers and suppliers, we:

        .       prohibit bribes, kickbacks or any other form of improper
                payment, direct or indirect, to any representative of
                government, labor union, customer or supplier in order to obtain
                a contract, some other commercial benefit or government action;

        .       prohibit our directors, officers and employees from accepting
                any bribe, kickback or improper payment from anyone;

        .       prohibit gifts or favors of more than nominal value to or from
                our customers or suppliers;

        .       limit marketing and client entertainment expenditures to those
                that are necessary, prudent, job-related and consistent with our
                policies;

        .       require clear and precise communication in our contracts, our
                advertising, our literature, and our other public statements and
                seek to eliminate misstatement of fact or misleading
                impressions;

        .       reflect accurately on all invoices to customers the sale price
                and terms of sales for products sold or services rendered;

        .       protect all proprietary data our customers or suppliers provide
                to us as reflected in our agreements with them; and

        .       prohibit our representatives from otherwise taking unfair
                advantage of our customers or suppliers, or other third parties,
                through manipulation, concealment, abuse of privileged
                information or any other unfair-dealing practice.

Conflicts of Interest; Corporate Opportunities

        Our directors, officers and employees should not be involved in any
activity that creates or gives the appearance of a conflict of interest between
their personal interests and the interests of the Company. A "conflict of
interest" exists when a director, officer or employee's personal interest
interferes with the best interests of the Company. In particular, without the
specific permission of our Audit Committee (which can delegate such authority to
our General Counsel), no director, officer or employee shall:

        .       be a consultant to, or a director, officer or employee of, or
                otherwise operate an outside business that:

                .       markets products or services in competition with our
                        current or potential products and services;

                .       supplies products or services to the Company; or

                                        3

<PAGE>

                .       purchases products or services from the Company;

                .       have any financial interest, including significant stock
                        ownership, in any entity with which we do business that
                        might create or give the appearance of a conflict of
                        interest;

        .       seek or accept any personal loan or services from any entity
                with which we do business, except from financial institutions or
                service providers offering similar loans or services to third
                parties under similar terms in the ordinary course of their
                respective businesses;

        .       be a consultant to, or a director, officer or employee of, or
                otherwise operate an outside business if the demands of the
                outside business would interfere with the director's, officer's
                or employee's responsibilities to us, (if in doubt, consult your
                supervisor or the General Counsel);

        .       accept any personal loan or guarantee of obligations from the
                Company, except to the extent such arrangements are legally
                permissible; or

        .       conduct business on behalf of the Company with immediate family
                members, which include spouses, children, parents, siblings and
                persons sharing the same home whether or not legal relatives.

        Directors, officers and employees should attempt to avoid conflicts of
interest. Directors, officers, and employees must notify the General Counsel or
the Chair of our Audit Committee of the existence of any actual or potential
conflict of interest. The General Counsel or our Audit Committee will consider
the facts and circumstances of the situation to decide whether corrective or
mitigating action is appropriate.

Confidentiality and Corporate Assets

        Our directors, officers and employees are entrusted with our
confidential information and with the confidential information of our suppliers,
customers or other business partners. This information may include (1) technical
or scientific information about current and future products, services or
research, (2) business or marketing plans or projections, (3) earnings and other
internal financial data, (4) personnel information, (5) supply and customer
lists and (6) other non-public information that, if disclosed, might be of use
to our competitors, or harmful to our suppliers, customers or other business
partners. This information is our property, or the property of our suppliers,
customers or business partners and in many cases was developed at great expense.
Our directors, officers and employees shall:

        .       not discuss confidential information with or in the presence of
                any unauthorized persons, including family members and friends;

        .       use confidential information only for our legitimate business
                purposes and not for personal gain;

        .       not disclose confidential information to third parties; and

                                        4

<PAGE>

        .       not use Company property or resources for any personal benefit
                or the personal benefit of anyone else. Company property
                includes the Company internet, email, and voicemail services,
                which should be used only for business related activities, and
                which may be monitored by the Company at any time without
                notice.

III.    We Provide Full, Fair, Accurate, Timely and Understandable Disclosure

        We are committed to providing our shareholders and investors with full,
fair, accurate, timely and understandable disclosure in the reports that we file
with the Securities and Exchange Commission. To this end, our directors,
officers and employees shall:

        .       not make false or misleading entries in our books and records
                for any reason;

        .       not condone any undisclosed or unrecorded bank accounts or
                assets established for any purpose;

        .       comply with generally accepted accounting principles at all
                times;

        .       notify our Chief Financial Officer if there is an unreported
                transaction;

        .       maintain a system of internal accounting controls that will
                provide reasonable assurances to management that all financial
                transactions are properly recorded;

        .       maintain books and records that accurately and fairly reflect
                our transactions;

        .       prohibit the establishment of any undisclosed or unrecorded
                funds or assets;

        .       maintain a system of internal controls that will provide
                reasonable assurances to our management that material
                information about the Company is made known to management,
                particularly during the periods in which our periodic reports
                are being prepared;

        .       present information in a clear and orderly manner and avoid the
                use of unnecessary legal and financial language in our periodic
                reports; and

        .       not communicate to the public any nonpublic information except
                through our Chief Financial Officer or Chief Executive Officer.

                       REPORTING AND EFFECT OF VIOLATIONS

        Compliance with this Code of Conduct is, first and foremost, the
individual responsibility of every director, officer and employee. We attempt to
foster a work environment in which ethical issues and concerns may be raised and
discussed with supervisors or with others without the fear of retribution. It is
our responsibility to provide a system of reporting and access when you wish to
report a suspected violation, or to seek counseling, and the normal chain of
command cannot, for whatever reason, be used.

                                        5

<PAGE>

Administration

        Our Board of Directors and Audit Committee have established the
standards of business conduct contained in this Code of Conduct and oversees
compliance with this Code of Conduct. They have also charged our General Counsel
with ensuring adherence to the Code of Conduct. While serving in this capacity,
our General Counsel reports directly to the Audit Committee.

        Training on this Code of Conduct will be included in the orientation of
new employees and provided to existing directors, officers, and employees on an
on-going basis. To ensure familiarity with the Code of Conduct, directors,
officers, and employees will be asked to read the Code of Conduct and sign a
Compliance Certificate annually.

Reporting Violations and Questions

        Directors, officers, and employees must report, in person or in writing,
any known or suspected violations of laws, governmental regulations or this Code
of Conduct to Wesley Fredenburg, our General Counsel. Additionally, directors,
officers, and employees may contact our General Counsel with a question or
concern about this Code of Conduct or a business practice. Any questions or
violation reports will be addressed immediately and seriously, and can be made
anonymously. The address and telephone number of these individuals are listed in
the attachment to this Code of Conduct.

        We will not allow any retaliation against a director, officer or
employee who acts in good faith in reporting any violation.

        Our General Counsel will investigate any reported violations and will
determine an appropriate response, including corrective action and preventative
measures, involving the Chair of the Audit Committee or Chief Executive Officer
when required. Directors, officers and employees must cooperate in internal
investigations of potential or alleged misconduct. All reports will be treated
confidentially to every extent possible.

Consequences of a Violation.

        Directors, officers and employees that violate any laws, governmental
regulations or this Code of Conduct will face appropriate, case specific
disciplinary action, which may include demotion or immediate discharge.

Waivers

        Waivers of this Code of Conduct may be made only in a manner permitted
by law.

                                        6

<PAGE>

Reporting Contacts:
General Counsel:
Name: Wesley Fredenburg
Address: 7803 Glenroy Road
Suite 200
Minneapolis, MN 55439
Phone: (612) 492-2405

                                        7

<PAGE>

                             COMPLIANCE CERTIFICATE

        I have read and understand the Velocity Express Corporation Code of
Business Conduct and Ethics (the "Code of Conduct"). I will adhere in all
respects to the ethical standards and rules of conduct described in the Code of
Conduct. I further confirm my understanding that any violation of the Code of
Conduct will subject me to appropriate disciplinary action, which may include
demotion or discharge.

        I certify to Velocity Express Corporation that I am not in violation of
the Code of Conduct, unless I have noted such violation in a signed Statement of
Exceptions attached to this Compliance Certificate.

Date: _____________________________          ___________________________________
                                             Name: _____________________________
                                             Title/Position: ___________________

Check one of the following:

[ ]     A Statement of Exceptions is attached.

[ ]     No Statement of Exceptions is attached.

                                        8

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