Document:

EX-4.2

   Exhibit 4.2

 
 LEVI STRAUSS & CO.
$500,000,000 5.00% Senior Notes due 2025
 
REGISTRATION RIGHTS AGREEMENT

April 17, 2020
  
 BofA Securities, Inc.
as Representative of the Several Initial Purchasers
c/o BofA
Securities, Inc.
One Bryant Park
New York, New York 10036
  
 Ladies and Gentlemen:

 
 Levi Strauss & Co., a corporation organized under the laws of Delaware (the “Company”), proposes to issue
and sell to certain purchasers as set forth in Schedule I to the Purchase Agreement (as defined below) (the “Initial Purchasers”) $500,000,000 principal amount of its 5.00% Senior Notes due 2025 (the “Securities”), in each
case pursuant to, and upon the terms set forth in, the purchase agreement dated April 14, 2020 (the “Purchase Agreement”) relating to the initial placement of the Securities (the “Initial Placement”).  The Company
previously issued and sold $500,000,000 aggregate principal amount of 5.00% Senior Notes due 2025 on April 27, 2015 (the “Existing Securities”). 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 and the New Securities, dated as of April 27,
2015, as supplemented by the Supplemental Indenture, between the Company and Wells Fargo Bank, National Association, 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.

 
 “Issue Date” shall have the meaning set forth in Section 2(a) hereof.

 
 “Issuer Free Writing Prospectus” shall mean any issuer free writing prospectus, as such term is defined in Rule
433 under the Act, relating to any portion of the Securities or the New Securities.
  
 “Losses” shall have the
meaning set forth in Section 7(d) hereof.
  
 “Majority Holders” shall mean the Holders of a majority of the
aggregate principal amount of Securities registered under a Registration Statement.
  
	 
	-2-
	  

	 

  
 “Managing Underwriters” shall mean the
investment banker or investment bankers and manager or managers that shall administer an underwritten offering.
  

“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.
  

“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.

 
 “Supplemental Indenture” shall mean the supplemental indenture relating to the Securities, dated as of April 17,
2020, by and between the Company and the Trustee.
  
 “Trustee” shall mean the trustee with respect to the
Securities or the New Securities, as applicable, under the Indenture.
  
	 
	-3-
	  

	 

  
 “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 (the “Issue Date”) (or if such 90th day is not a Business Day, the next succeeding Business Day), 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 Issue Date (or if such 180th day is not a Business Day, the next
succeeding Business Day).
  
 (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 registered 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 registered 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;
  
 (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 or an Affiliate of the Trustee;
  
	 
	-4-
	  

	 

  
 (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 cancellation in accordance with Section 5(r) all Securities so accepted for exchange; and

 
 (iii)       cause the 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 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:
  
	 
	-5-
	  

	 

  
 (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, or if it is an Affiliate, it will comply with the registration and prospectus delivery requirements of the Act to the extent applicable.
  

(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 and cause such CUSIP numbers to be the same as the CUSIP numbers applicable to the Existing Securities.

 
 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 Issue Date (or if such 180th day is not a Business Day, the next succeeding Business Day) or the Registered Exchange Offer is not consummated within
210 days of the Issue Date (or if such 210th day is not a Business Day, the next succeeding Business Day); (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.
  
	 
	-6-
	  

	 

  
 (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 use its reasonable best efforts to cause to become effective under
the Act a Shelf Registration Statement, or shall, if permitted by Rule 430B under the Act, otherwise designate an existing effective filing with the Commission for use by the Holders as 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 Issue 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 5(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 5(k) hereof, if applicable.
  
	 
	-7-
	  

	 

  
 4.        
Additional Interest.  If (i) on or prior to the 90th day following the Issue Date, neither the Exchange Offer Registration Statement nor the Shelf Registration Statement has been filed with the Commission, (ii) on or prior to the 180th
day following the Issue Date, neither the Exchange Offer Registration Statement nor the Shelf Registration Statement has been declared effective by the Commission, (iii) on or prior to the 210th day following the Issue Date, neither the Registered
Exchange Offer has been consummated nor the Shelf Registration Statement has been declared effective or (iv) after either the Exchange Offer Registration Statement or the Shelf Registration Statement is filed and declared effective the Registration
Statement thereafter ceases to be effective or fails to be usable for its intended purpose without being succeeded immediately by a post-effective amendment to such Registration Statement that cures such failure and that is itself immediately
declared effective (each such event referred to in clauses (i) through (iv), a “Registration Default”), the Company hereby agrees that the interest rate borne by the Securities shall be increased by 0.25% per annum during the 90-day
period immediately following the occurrence of any Registration Default and shall increase by 0.25% per annum at the end of each subsequent 90-day period, but in no event shall such increase exceed 1.00% per annum.  Following the cure of all
Registration Defaults relating to any particular Securities, the interest rate borne by the relevant Securities will be reduced to the original interest rate borne by such Securities; provided, however, that, if after any such
reduction in interest rate, a different Registration Default occurs, the interest rate borne by the relevant Securities shall again be increased pursuant to the foregoing provisions.
  

All obligations of the Company set forth in the preceding paragraph that are outstanding with respect to the Securities shall accrue to the New Securities until such time as
all such obligations with respect to such security shall have been satisfied in full.
  

5.         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 or designation 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 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;
  
	 
	-8-
	  

	 

  
 (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 in such a manner as to permit such Holders to deliver the Prospectus contained
therein to purchasers of Securities or New Securities, as applicable, in accordance with applicable law; and
  

(v)        unless the Shelf Registration Statement is an automatic shelf registration statement, the Company shall include the information
required by Rule 430B(b)(2)(iii) under the Act.
  
 (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 or is designated, 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 does 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
any such Prospectus, and any amendment or supplement thereto, 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.
  
 (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 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 or any Registration Statement has been designated for use by the Holders and when the Registration Statement or any post-effective amendment thereto has become
effective;
  
	 
	-9-
	  

	 

  
 (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
or New Securities, as applicable, in connection with the offering and sale of the Securities or New Securities, as applicable, covered by the Prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement.

 
 (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.
  
	 
	-10-
	  

	 

  
 (i)         Prior
to the Registered Exchange Offer or any other offering of Securities or New Securities, as applicable, pursuant to any Registration Statement, the Company shall arrange, if necessary, for the qualification of the Securities or the New Securities, as
applicable, 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 5(c) to and including the date when the Initial Purchasers, the Holders of the Securities or New Securities, as
applicable, 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, 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 to be qualified under the Trust
Indenture Act in a timely manner.
  
	 
	-11-
	  

	 

  
 (o)        The Company
may require each Holder of Securities or New Securities, as applicable, to be sold pursuant to any Shelf Registration Statement to furnish to the Company such information regarding the Holder and the distribution of such Securities or New
Securities, as applicable, as the Company may from time to time reasonably require for inclusion in such Registration Statement and (ii) provide the indemnity contemplated by Section 7(b).  The Company may exclude from such Shelf Registration
Statement the Securities or New Securities, as applicable, 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 or New Securities, as
applicable, 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 7 (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 7.
  

(q)        In the case of any Shelf Registration Statement, the Company shall:
  

(i)         make reasonably available for inspection by the Holders of Securities or New Securities, as applicable, 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;
  

(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;
  
	 
	-12-
	  

	 

  
 (iii)       make such
representations and warranties to the Holders of Securities or New Securities, as applicable, 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 registered public accounting firm of the Company (and, if necessary, any other independent registered public accounting firm 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 or New Securities, as applicable, 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 5(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 or designation 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.
  
 (s)        In the event that
any Broker-Dealer shall underwrite any Securities or New Securities, as applicable, 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 Financial Industry Regulatory Authority, Inc.) thereof, whether as a Holder of such Securities or New Securities, as applicable, 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:
  
	 
	-13-
	  

	 

  
 (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 or New Securities, as applicable;

 
 (ii)        indemnifying any such qualified independent underwriter to the extent of
the indemnification of underwriters provided in Section 7 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.
  

(t)        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.
  

6.         Registration Expenses.  The Company shall bear all expenses incurred in connection with the performance of its
obligations under Sections 2, 3 and 5 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.

 
 7.         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 delivery as contemplated in Section 5(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 (i) the Registration Statement as originally filed or in any amendment thereof, (ii) any preliminary
Prospectus or the Prospectus, or any amendment thereof or supplement thereto, or (iii) any Issuer Free Writing Prospectus approved for use by the Company, 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.  This indemnity agreement will be in addition to any liability which the Company may otherwise have.
  
	 
	-14-
	  

	 

  
 The Company also agrees to indemnify or contribute as
provided in Section 7(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 7(a) and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as
provided in Section 5(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 5(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 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 BofA Securities, Inc. in the case of the parties indemnified pursuant to Section 7(a) and by the Company in the case of parties indemnified pursuant to Section 7(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 in the Purchase Agreement, 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 in the Purchase Agreement.  Benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as set
forth in the Purchase Agreement, 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.
  

8.         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 7(b) hereof.
  
 9.         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.
  
 10.       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.
  
	 
	-17-
	  

	 

  
 11.      
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 BofA Securities, Inc.

 
 (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.
  
 12.       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.
  
	 
	-18-
	  

	 

  
 13.      
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.
  

14.       Headings.  The headings used herein are for convenience only and shall not affect the construction hereof.

 
 15.       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.
  

16.       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.
  

17.       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.
  
 [Signature pages follow]

 
	 
	-19-
	 
 
	 

  
 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:     	/s/ Lauren Dudley	
	  
	  
	Name: Lauren Dudley	 
	 	 	Title: Vice President and Treasurer	 
	 	 	 	 

  
 
	 
	-20-
	 
 
	 

  
  
 The foregoing Agreement is hereby
confirmed and accepted as of
the
date first above written.
  

	BOFA SECURITIES, INC.	
	 	 	 
	By:      	/s/ Alexander Bavifard	
	  
	Name: Alexander Bavifard	 
	 	Title:   Director	 
	 	 	 

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

 
	 
	
	 
 
	 

  
 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 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”.
  
  
	 
	
	 
 
	 

  
 ANNEX B
  

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 ___________, 20 ̈, 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.
  

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.
  
  
	 
	
	 
 
	 

  
 ANNEX D
 Rider A
  

	 o           
	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 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.ex_181784.htm

Exhibit 10.1

 

AMENDMENT NO. 2 TO SECURITIES PURCHASE AGREEMENT

 

This Amendment No. 2 dated as of April 13, 2020 (this “Amendment”) by and between Yunhong CTI Ltd., a corporation incorporated under the laws of the State of Illinois (the “Company” or “CTI”), and LF International Pte. Ltd., a Singapore company (“Buyer”), amends that certain Stock Purchase Agreement dated as of January 3, 2020 between the Company and the Buyer (the “Securities Purchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Securities Purchase Agreement.

 

WHEREAS, on February 24, 2020, the parties entered into Amendment No. 1 of the Securities Purchase Agreement to permit an interim closing on $700,000 of the Second Tranche Purchase Price, prior to the satisfaction of the relevant closing conditions to, and the consummation of the Second Closing.

 

WHEREAS, the parties wish to further amend the Securities Purchase Agreement to permit an interim closing to occur prior to the satisfaction of the relevant closing conditions to, and the consummation of, the Second Closing, whereby an additional $1,300,000 of the Second Tranche Purchase Price (the “Additional Second Tranche Advance”) shall be released from the Escrow Account to purchase the Additional Interim Shares (as defined below).

 

WHEREAS, in order to induce the Buyer to enter into this Amendment and to provide the Additional Second Tranche Advance, the Company wishes to extend to the Buyer, and Buyer wishes to secure, the Board Appointment Right to appoint one additional Buyer Director Nominee (the “Third Buyer Director Nominee”), for which Buyer shall be entitled to all of the rights and privileges set forth in Section 5.05 of the Securities Purchase Agreement.

 

WHEREAS, as additional consideration to induce the Buyer to enter into this Amendment, the Company desires to issue to the Buyer an aggregate of 260,000 shares of Common Stock, valued at $1.00 per share (the “Additional Inducement Shares”).

 

NOW THEREFORE, in consideration of the premises, the mutual agreements contained herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned agree as follows:

 

1.      Interim Purchase and Sale. Upon satisfaction of the applicable closing conditions set forth herein, the Additional Second Tranche Advance will be released from the Escrow Account in accordance with the Escrow Agreement, and the Company shall issue and sell to Buyer, and Buyer shall purchase from the Company (such purchase to be effected through release of the Additional Second Tranche Advance) 130,000 Second Tranche Shares, at a purchase price of $10.00 per Share (the “Additional Interim Shares”).

 

	 	
			2.

				
			Transactions to be Effected at the Interim Closing. 

			

 

	 	
			a.

				
			At or prior to the closing of the Additional Second Tranche Advance (the “Additional Interim Closing”):

			

 

 

 

 

	 	
			i.

				
			The Additional Second Tranche Advance will be released from the Escrow Account to the Company in accordance with the Escrow Agreement; and

			

 

	 	
			ii.

				
			Buyer shall deliver to the Company all other agreements, documents, instruments or certificates that each is required to deliver, and take all actions Buyer is required to take, as may be reasonably required by the Company (without limiting the generality of the foregoing, Buyer shall execute any escrow release notice required for the release of the Additional Second Tranche Advance under the Escrow Agreement).

			

 

	 	
			b.

				
			At or prior to the Additional Interim Closing, the Company shall:

			

 

	 	
			i.

				
			deliver to Buyer stock certificates evidencing the Additional Interim Shares, free and clear of all Encumbrances;

			

 

	 	
			ii.

				
			deliver to Buyer stock certificates evidencing the Additional Inducement Shares, free and clear of all Encumbrances; and

			

 

	 	
			iii.

				
			deliver to Buyer all other agreements, documents, instruments or certificates that the Company is required to deliver, cause to be delivered all documents required to be delivered by advisors to the Company and take all actions the Company is required to take, as may be reasonably required by the Buyer and its counsel in their sole discretion.

			

	 	 	 
	 	
			3.

				
			Third Buyer Director Nominee.

			

 

	 	
			a.

				
			At the earlier of (i) the Company’s upcoming 2020 annual meeting of stockholders (the “Annual Meeting”) and (ii) May 15, 2020, the Company shall cause the Third Buyer Director Nominee (the individual whose name Buyer has submitted to the Company prior to the filing of the proxy statement for the Annual Meeting) to be elected to the Company Board, such that upon such election, the Company Board shall be comprised of seven directors, of which three shall be Buyer Director Nominees.

			

 

	 	
			b.

				
			Buyer shall be entitled to all of the rights and privileges set forth in Section 5.05 of the Securities Purchase Agreement as to the Third Buyer Director Nominee, subject to any pro rata adjustment, as applicable.

			

 

	 	
			c.

				
			For the avoidance of doubt, Section 5.05(iv) is hereby replaced in its entirety with the following:

			

 

	 	
			(iv)

				
			For so long as Buyer owns at least 9.9% of the voting power or equity interest in the Company’s then-outstanding capital stock, in the event there are more than seven members of the Board, Buyer shall be entitled to designate one or more additional directors (who shall be reasonably acceptable to the Company), if necessary, to ensure that the percentage of Buyer nominees serving on the Board most closely approximates the initial ratio of 3:7 board nominees designated by the Buyer relative to the total ownership percentage of the Company’s voting power then-held by the Buyer at any such time following the First Closing. For the avoidance of doubt, if at the time the Company increases the size of the Board to ten directors, Buyer holds 56% of the Company’s voting power, then Buyer will be entitled to a total of four Buyer Director Nominees.

			

 

 

 

 

4.     Use of Proceeds. For the avoidance of doubt, the net proceeds from the transactions contemplated herein shall be used in strict accordance with Section 5.12 of the Securities Purchase Agreement.

 

5.     To the extent any other provisions of the Securities Purchase Agreement need to be amended to properly reflect the revisions set forth above, such provisions are hereby so amended.     

6.     Except as modified and amended herein, all of the terms and conditions of the Securities Purchase Agreement shall remain in full force and effect.

 

7.     This Amendment may be executed in one or more counterparts (including facsimile counterparts), each of which shall, for all purposes, be deemed an original and all of such counterparts, taken together, shall constitute one and the same Amendment.

 

8.     This Amendment and the rights of the parties hereto shall be interpreted in accordance with the laws of the State of New York, without giving effect to principles of conflict of laws.

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

 

 

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

	 	 
	 	
			YUNHONG CTI LTD.

			 

			 

			By                                                                                

			Name: Frank J. Cesario

			Title: Chief Financial Officer and Chief Executive Officer

			 

			 

			LF INTERNATIONAL PTE. LTD.

			 

			 

			By                                                                                

			Name: Yubao Li

			Title: Authorized Representative

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00307-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00307-of-00352.parquet"}]]