Document:

<PAGE>   1
                                  EXHIBIT 10(a)

                               EXCHANGE AGREEMENT

THIS AGREEMENT (this "Agreement") is entered into as of October 29, 1999 between
Parker-Hannifin Corporation (the "Employer") and Michael J. Hiemstra (the
"Participant").

                                    RECITALS

A.       The Employer has offered the Participant certain benefits under an
         Executive Estate Protection Plan in exchange for a portion of the
         Participant's future compensation.

B.       The Participant desires to surrender a portion of his future
         compensation in order to participate in the Executive Estate Protection
         Plan.

                                    AGREEMENT

         NOW THEREFORE, it is mutually agreed that:

1.       REDUCTION IN FUTURE COMPENSATION.

         a.       SURRENDER. In consideration of the Employer's agreement to be
                  bound by the terms of the Executive Estate Protection Plan
                  Document (defined below), the Participant agrees to the
                  irrevocable surrender of future base pay (the "Surrendered
                  Compensation") in the amount of $4,166.67 per month (the
                  "Monthly Surrenders") beginning with the month of November,
                  1999 and ending with the month of October, 2006 (the
                  "Surrender Term"). The Participant acknowledges that he shall
                  have no further rights or claims of any sort whatsoever to the
                  Surrendered Compensation.

         b.       SHORTFALL. In the event the employment of the Participant is
                  terminated prior to October 31, 2006 for any reason other than
                  Termination for Cause or the death of the Participant (but
                  only if the Participant is the Decedent), the Corporation
                  shall be entitled to reduce any cash compensation or other
                  non-qualified benefits payable to the Participant, or his
                  representatives, heirs or beneficiaries (including without
                  limitation benefits payable under the Employer's Supplemental
                  Executive Retirement Program, Savings Restoration Plan or
                  Executive Deferral Plan) by an amount equal to the sum of the
                  Monthly Surrenders remaining in the Surrender Term (the
                  "Mandatory Benefit Reduction"); provided, however, to the
                  extent any Mandatory Benefit Reduction is imposed by the
                  Employer on any payment earlier than the corresponding Monthly
                  Surrender would have been made by the Participant, the amount
                  of the Mandatory Benefit Reduction shall be reduced to the
                  present value of such Monthly Surrender calculated by using a
                  4.52% discount rate.

2.       EXECUTIVE ESTATE PROTECTION. The Employer has provided the Participant
         with an Executive Estate Protection Plan, comprised of that certain
         Executive Estate Protection Plan Agreement by and between the Employer,
         the Participant and the Irrevocable Trust Creating Vested Trusts for
         Children of M. J. Hiemstra dated August 16, 1999, attached hereto as
         Exhibit A, and the "as sold" illustration of an Executive Estate
         Protection Plan Insurance Policy as issued by John Hancock Life
         Insurance Company, dated October 20, 1999 (together, the

                                      1
<PAGE>   2

         "Executive Estate Protection Plan Document"). By his signature below,
         the Participant acknowledges that he has received a copy of the
         Executive Estate Protection Plan Document. The parties to this
         Agreement agree to and shall be bound by, and have the benefit of, each
         and every provision of the Executive Estate Protection Plan Document as
         set forth in the Executive Estate Protection Plan Agreement. This
         Agreement and the Executive Estate Protection Plan Document,
         collectively, shall be considered one complete contract between the
         parties.

3.       EFFECT ON EXECUTIVE DEFERRAL PLAN. The Participant hereby agrees that
         the amount of any Surrendered Compensation hereunder shall reduce the
         maximum amount which the Participant is entitled to elect to defer
         under the Employer's Executive Deferral Plan.

4.       EFFECT ON BONUS AND OTHER BENEFITS. The Employer hereby agrees that the
         amount of any Surrendered Compensation hereunder shall be included in
         Participant's base pay for the purpose of determining the amount of
         bonus payable to the Participant under the Employer's RONA plan and for
         the purpose of determining the Participant's benefits under the
         Employer's Executive Life Insurance Plan and Supplemental Executive
         Retirement Program. The Participant hereby agrees that the amount of
         any Surrendered Compensation hereunder shall not be included in base
         pay for the purpose of determining allowable deferrals under the
         Employer's Retirement Savings Plan, Savings Restoration Plan and
         Executive Deferral Plan nor for the purpose of determining benefits
         payable under the Employer's Retirement Plan.

5.       CHANGE IN CONTROL. Employer intends to seek the approval of its Board
         of Directors to fund all payments required by the Employer under the
         Executive Estate Protection Plan in an irrevocable grantor trust in the
         event of a Change in Control of the Employer (as such term is defined
         in the Change in Control Severance Agreement between the Employer and
         the Participant dated August 16, 1996).

6.       RATING. Employer acknowledges that Participant has entered into an
         Underwriting Agreement with the Insurer which requires a rating
         analysis to be performed on the Participant and his wife on the second
         anniversary of the Policy, if requested by the Participant. In the
         event such rating analysis by the Insurer results in the willingness of
         the Insurer to increase the Owner's Death Benefit under the Policy, the
         Employer agrees, at the election of the Participant, to meet in good
         faith with Participant to re-negotiate the terms of the Executive
         Estate Protection Plan, provided said renegotiation shall not result in
         an increase of the after-tax present value cost to the Employer of the
         Executive Estate Protection Plan.

7.       ACKNOWLEDGMENT. The Participant hereby acknowledges that he has read
         and understands this Agreement and the Executive Estate Protection Plan
         Document.

8.       SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of,
         and be binding upon, the Employer and its successors and assigns, and
         the Participant and his assignees, devisees and heirs.

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<PAGE>   3

9.       GOVERNING LAW. This Agreement shall be governed by and construed under
         the laws of the State of Ohio, as in effect at the time of the
         execution of this Agreement.

10.      DEFINED TERMS. Initially capitalized terms used but not defined herein
         shall have the meaning ascribed to them in the Executive Estate
         Protection Plan Document.

         IN WITNESS WHEREOF, the Participant has signed and the Employer has
accepted this Agreement as of the date first written above.

                                   /s/ Michael J. Hiemstra
                                       Michael J. Hiemstra

                                   PARKER-HANNIFIN CORPORATION

                                   By: /s/ Duane E. Collins
                                           Duane E. Collins
                                           President and Chief Executive Officer

                                       3
<PAGE>   4

                      EXECUTIVE ESTATE PROTECTION AGREEMENT

         This Executive Estate Protection Agreement ("Agreement") is made as of
October 29, 1999, among Parker-Hannifin Corporation, an Ohio corporation, (the
"Corporation"), Michael J. Hiemstra (the "Participant") and the Irrevocable
Trust Creating Vested Trusts for Children of M. J. Hiemstra dated August 16,
1999 ( the "Owner").

                                    RECITALS

A.       The Participant desires to insure his life and his wife's life for the
         benefit and protection of the Participant's family or other beneficiary
         under the Policy (as defined below);

B.       The Corporation desires to help the Participant provide life insurance
         for the benefit and protection of his family or beneficiary by
         providing funds from time to time to pay the premiums due on the Policy
         in accordance with this Agreement; and

C.       The Owner desires to assign certain rights and interests in the Policy
         to the Corporation, to the extent provided herein, as security for
         repayment of certain funds provided by the Corporation for the
         acquisition and/or maintenance of the Policy.

                                    AGREEMENT

NOW, THEREFORE, in consideration of the foregoing, and the mutual agreements and
covenants set forth below, the parties to this Agreement agree as follows:

1.       DEFINITIONS. For purposes of this Agreement, unless otherwise clearly
         apparent from the context, the following phrases or terms shall have
         the following indicated meanings:

         (a)      "Aggregate Premiums Paid" shall mean, at any time, an amount
                  equal to the cumulative premiums paid by the Corporation on
                  the Policy.

         (b)      "Cash Surrender Value" shall mean an amount that equals, at
                  any specified time, the cash surrender value as determined
                  under the terms of the Policy.

         (c)      "Code" shall mean the Internal Revenue Code of 1986, as
                  amended.

         (d)      "Collateral Assignment" shall mean an assignment made by the
                  Owner in favor of the Corporation in a form attached to this
                  Agreement as Exhibit 1.

         (e)      "Collateral Interest" shall mean the Corporation's interest in
                  the Policy, which shall equal, at any time, the lesser of
                  Aggregate Premiums Paid or Cash Surrender Value, and which
                  shall be repaid to the Corporation in accordance with Section
                  6 below.

         (f)      "Corporation's Death Benefit" shall mean the portion of the
                  Policy's death benefit equal to Aggregate Premiums Paid plus
                  an amount equal to the cumulative premiums paid by the Owner
                  on the policy pursuant to Section 3(b) hereof.

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<PAGE>   5

         (g)      "Decedent" shall mean the second to die of the Participant and
                  his wife.

         (h)      "Designated Beneficiary" shall mean the beneficiary designated
                  under the Policy.

         (i)      "Economic Income" shall mean an amount equal to the value of
                  the "economic benefit" derived by the Participant from the
                  Policy's life insurance protection, as determined for Federal
                  income tax purposes under the Code. Economic Income shall
                  include any increase in economic benefit attributable to the
                  death of the first to die under the Policy.

         (j)      "Insurer(s)" shall mean John Hancock Life Insurance Company.

         (k)      "Investment Elections" shall mean any elections which the
                  Owner has under the Policy to invest the Cash Surrender Value.

         (l)      "Owner" shall mean the Irrevocable Trust Creating Vested
                  Trusts for Children of M. J. Hiemstra dated August 16, 1999.

         (m)      "Owner's Death Benefit" shall mean the portion of the Policy's
                  death benefit, if any, that exceeds the Corporation's Death
                  Benefit. The ultimate amount of death benefit payable under
                  the Policy is dependent upon the financial performance of the
                  Policy.

         (n)      "Participant" shall mean Michael J. Hiemstra.

         (o)      "Policy" shall mean the following joint life policy on the
                  life of the Participant and his wife that is issued by the
                  Insurer:

<TABLE>
<CAPTION>

                                  INSURER                       POLICY NUMBER             TYPE OF POLICY
                  --------------------------------------      ----------------------   -------------------------
<S>                                                           <C>                      <C>
                  John Hancock Life Insurance Company              20039806            Estate Protection Life
                                                                                       Insurance
                  --------------------------------------      ----------------------   -------------------------
</TABLE>

         (p)      "Split Dollar Maturity Date" shall mean the date on which the
                  first of any of the following events occurs:

                  (i)      the fifteenth (15th) anniversary of the issuance of
                           the Policy;
                  (ii)     the death of the Decedent; or
                  (iii)    Termination for Cause.

         (q)      "Termination for Cause" shall mean termination of the
                  Participant's employment by the Corporation as a result of
                  activity by the Participant detrimental to the interest of the
                  Corporation, including without limitation:

                  (i)      the rendering of services for an organization, or
                           engaging in a business, that is in competition with
                           the Corporation;

                                       2
<PAGE>   6

                  (ii)     the disclosure to anyone outside of the Corporation,
                           or the use for any purpose other than the
                           Corporation's business, of confidential information
                           or material related to the Corporation;

                  (iii)    fraud, embezzlement, theft-in-office or other illegal
                           activity; or

                  (iv)     violation of the Corporation's Code of Ethics.

2.       ACQUISITION OF POLICY; OWNERSHIP OF INSURANCE. The parties to this
         Agreement shall cooperate in applying for and obtaining the Policy. The
         Policy shall be issued to the Owner as the sole and exclusive owner of
         the Policy, subject to the rights and interests granted to the
         Corporation as provided in this Agreement and the Collateral
         Assignment. Concurrent with the signing of this Agreement, the Owner
         will collaterally assign the Policy to the Corporation, in the form of
         the Collateral Assignment, as security for the payment of the
         Collateral Interest, which assignment shall not be altered or changed
         without the mutual consent of the Corporation and the Owner.

3.       PREMIUM PAYMENTS ON POLICY.
         --------------------------

         (a)      PAYMENTS AND REIMBURSEMENTS. Prior to the occurrence of the
                  Split Dollar Maturity Date, the Corporation shall pay to the
                  Insurer, on or before each applicable premium due date, all
                  applicable premiums for the Policy, less the amount payable by
                  the Owner as described in subsection (b) below. The
                  Corporation shall promptly notify Owner in writing of the
                  amount and date of such premium payments. In the event that
                  the Corporation fails to make any such payment, the Owner or
                  the Participant may make (but is not required to make) any
                  such payment, and the Corporation shall immediately reimburse
                  the Owner or the Participant, as the case may be, for any
                  amount so paid.

         (b)      PREMIUM PAYMENT BY OWNER. Prior to the occurrence of the Split
                  Dollar Maturity Date, Owner shall pay to the Insurer, on or
                  before each applicable premium due date, a premium payment
                  equal to the Economic Income for such calendar year, as
                  mutually determined by the Corporation and the Participant.

         (c)      PREMIUM REIMBURSEMENT. At least sixty (60) days prior to each
                  applicable premium due date, the Corporation shall make a
                  payment to the Participant equal to the premium payable by the
                  Owner pursuant to subsection (b) above.

         (d)      TAX REIMBURSEMENT. On or before March 15 following each
                  calendar year until the Split Dollar Maturity  Date, the
                  Corporation shall reimburse the Participant for the
                  Participant's state, local and federal income tax liability
                  attributable to (i) the Participant's Economic Income for such
                  calendar year, if any; (ii) the payment by the Corporation to
                  the Participant pursuant to subsection (c) above; and (iii)
                  payments made pursuant to this subsection (d).  The tax rates
                  used by the Corporation in calculating the reimbursement under
                  this Section 3(d) shall be the appropriate federal, state and
                  local income tax rates in effect for the Participant at the
                  time of payment, as determined by the Corporation.

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<PAGE>   7
4.       Corporation's Rights.  The Corporation's rights and interests in and
         to the Policy shall be specifically limited to (i) the right to be
         paid its Collateral Interest and the Corporation's Death
         Benefit, if any, in accordance with Section 6 below, and (ii) the
         rights specified in the Collateral Assignment.

5.       Owner's Rights.  Subject to the terms of this Agreement and the
         Collateral Assignment, the Owner of the Policy shall be entitled to
         exercise all rights in the Policy; provided, however, that  while the
         Collateral Assignment is in effect, the following rights may be
         exercised only with the consent of the Corporation, which consent may
         be withheld at the sole discretion of the Corporation:

         (a)      To borrow against or pledge the Policy;
         (b)      To surrender or cancel the Policy;
         (c)      To take a distribution or withdrawal from the Policy; or
         (d)      To make Investment Elections.

         In particular, subject to the terms and conditions of the Policy, and
         the provisions of Section 6 below, the Owner may assign its rights
         under this Agreement and the Collateral Agreement, including but not
         limited to an assignment to an insurance trust of which the
         Participant is a settlor. In the event of an assignment of its rights,
         the Owner shall promptly notify the Corporation of the name and
         address of the new Owner or assignee, including the name and address
         of any trustee.

6.       COLLATERAL INTEREST. On the Split Dollar Maturity Date, the Collateral
         Interest (or, if applicable under Section 6(a) below, the Corporation's
         Death Benefit) shall be paid or repaid to the Corporation in the
         following manner:

         (a)      Notwithstanding any provision of this Agreement or the Policy
                  that may be construed to the contrary, if the Split Dollar
                  Maturity Date occurs due to the death of the Decedent, (i) the
                  Corporation shall be entitled to that portion of the Policy's
                  death proceeds that equals the Corporation's Death Benefit, if
                  any, and (ii) the Owner or the Designated Beneficiary, as the
                  case may be, shall be entitled to the Owner's Death Benefit;
                  provided, however, if the Split Dollar Maturity Date occurs
                  due to the suicide of the Decedent, and the proceeds from the
                  Policy are limited by either a suicide or contestability
                  provision under the Policy, the Corporation shall be entitled
                  to that portion of the higher of the Policy's Cash Surrender
                  Value or death proceeds that does not exceed the Aggregate
                  Premiums Paid. In either event, promptly following the
                  Decedent's death, the Corporation and the Owner or the
                  Designated Beneficiary shall take all steps necessary to
                  collect the death proceeds of the Policy by submitting the
                  proper claims forms to the Insurer. The Corporation shall
                  notify the Insurer of the amount of the Owner's Death Benefit
                  (except when the Policy's proceeds are limited because of the
                  Decedent's death by suicide) and the Corporation's Death
                  Benefit. Such amounts shall be paid, respectively, by the
                  Insurer to the Owner or to the Designated Beneficiary, as the
                  case may be, and the Corporation.

                                       4
<PAGE>   8

         (b)      If the Split Dollar Maturity Date is other than the date of
                  the Decedent's death, the Corporation's Collateral Interest in
                  the Policy shall be paid to the Corporation in one of the
                  following ways, as elected by the Owner in writing within
                  thirty (30) days after the date the Corporation first notifies
                  the Participant and Owner in writing of the occurrence of the
                  Split Dollar Maturity Date:

                  (i)      By the Owner authorizing the Insurer to make a loan
                           against the Policy in an amount equal to the
                           Corporation's Collateral Interest and to pay the
                           proceeds to the Corporation, in which case the Owner
                           shall be considered the borrower for all purposes
                           under the loan;

                  (ii)     By the Owner authorizing the Insurer to withdraw from
                           the Cash Surrender Value of the Policy an amount
                           equal to the Corporation's Collateral Interest and to
                           pay the proceeds to the Corporation; or

                  (iii)    By the Owner paying to the Corporation, from the
                           Owner's separate funds, an amount equal to the
                           Corporation's Collateral Interest.

         (c)      If the Owner fails to timely exercise any of the options under
                  Section 6(b) above, the Corporation shall be entitled to
                  instruct the Insurer to pay to the Corporation from the Cash
                  Surrender Value of the Policy an amount equal to the
                  Corporation's Collateral Interest.

         (d)      The Corporation agrees to keep records of its premium payments
                  and to furnish the Owner and the Insurer with a statement of
                  its Collateral Interest whenever either party requires such
                  statement.

         (e)      Upon and after the Corporation's Collateral Interest in the
                  Policy has been repaid pursuant to Section 6(b) above, the
                  Corporation shall execute and file with the Insurer an
                  appropriate release of the Corporation's interest in the
                  Policy and shall have no further interest in the Policy.
                  Further, the Participant and/or Owner hereby acknowledge,
                  understand and agree that, upon the release of the
                  Corporation's Collateral Interest, the Corporation shall
                  continue not to have any responsibility for the future
                  performance of the Policy and shall have no obligation to make
                  any additional premium payments.

         (f)      Upon payment to the Corporation of its Collateral Interest or
                  the Corporation's Death Benefit in accordance with this
                  Section 6, this Agreement shall terminate and no party shall
                  have any further rights or obligations under the Agreement
                  with respect to any other party provided that the Corporation
                  has complied with all provisions of this Agreement.

7.       INSURER

                                       5

<PAGE>   9

         (a)      The Insurer is not a party to this Agreement, shall in no way
                  be bound by or charged with notice of its terms, and is
                  expressly authorized to act only in accordance with the terms
                  of the Policy. The Insurer shall be fully discharged from any
                  and all liability under the Policy upon payment or other
                  performance of its obligations in accordance with the terms of
                  the Policy.

         (b)      The signature(s) required for the Insurer to recognize the
                  exercise of a right under the Policy shall be specified in the
                  Collateral Assignment.

8.       CLAIMS PROCEDURE.

         The following claims procedure shall be followed in handling any
         benefit claim under this Agreement:

         (a)      The Owner, Participant, or the Designated Beneficiary, as the
                  case may be, (the "Claimant"), shall file a claim for benefits
                  by notifying the Corporation in writing. If the claim is
                  wholly or partially denied, the Corporation shall provide a
                  written notice within ninety (90) days (unless special
                  circumstances require an extension of time for processing the
                  claim, in which case an extension not to exceed ninety (90)
                  days shall be allowed) specifying the reasons for the denial,
                  the provisions of this Agreement on which the denial is based,
                  and additional material or information, if any, that is
                  necessary for the Claimant to receive benefits. Such written
                  notice shall also indicate the steps to be taken by the
                  Claimant if a review of the denial is desired.

         (b)      If a claim is denied, and a review is desired, the Claimant
                  shall notify the Corporation in writing within sixty (60) days
                  after receipt of written notice of a denial of a claim. In
                  requesting a review, the Claimant may submit any written
                  issues and comments the Claimant feels are appropriate. The
                  Corporation shall then review the claim and provide a written
                  decision within sixty (60) days of receipt of a request for a
                  review (unless special circumstances require an extension of
                  time for processing the claim, in which case an extension not
                  to exceed ninety (60) days shall be allowed). This decision
                  shall state the specific reasons for the decision and shall
                  include references to specific provisions of this Agreement,
                  if any, upon which the decision is based.

         (c)      If no event shall the Corporation's liability under this
                  Agreement exceed the amount of proceeds from the Policy.

9.       AMENDMENT OF AGREEMENT. This Agreement shall not be modified or amended
         except by a writing signed by all the parties hereto.

10.      BINDING AGREEMENT. This Agreement shall be binding upon the heirs,
         administrators, executors, successors and assigns of each party to this
         Agreement.

11.      STATE LAW. This Agreement shall be subject to and construed under the
         internal laws of the State of Ohio, without regard to its conflicts of
         laws principles.

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<PAGE>   10

12.      VALIDITY. In case any provision of this Agreement shall be illegal or
         invalid for any reason, said illegality or invalidity shall not affect
         the remaining parts of this Agreement, but this Agreement shall be
         construed and enforced as if such illegal or invalid provision had
         never been inserted in this Agreement.

13.      NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of this
         Agreement shall not be deemed to constitute a contract of employment
         between the Corporation and the Participant. Nothing in this Agreement
         shall be deemed to give the Participant the right to be retained in the
         service of the Corporation or to interfere with the right of the
         Corporation to discipline or discharge the Participant at any time.

14.      NOTICE. Any notice or filing required or permitted to be given under
         this Agreement to the Owner, Participant or the Corporation shall be
         sufficient if in writing and hand-delivered, or sent by registered or
         certified mail, to the address below:

           To the Owner:        The Irrevocable Trust Creating Vested Trusts
                                for Children of  M. J. Hiemstra dated
                                August 16, 1999
                                c/o David J. Hiemstra, Trustee
                                21006 Bayside
                                St. Clair Shores, MI  48081

           To the Participant:  Michael J. Hiemstra
                                55 Winding River Trail
                                Chagrin Falls, OH  44022

           To the Corporation:  Parker Hannifin Corporation
                                6035 Parkland Boulevard
                                Cleveland, OH  44124
                                Attn:  General Counsel

         or to such other address as may be furnished to the Owner, Participant
         or the Corporation in writing in accordance with this notice provision.
         Such notice shall be deemed given as of the date of delivery or, if
         delivery is made by mail, as of the date shown on the postmark on the
         receipt for registration or certification. Any notice or filing
         required or permitted to be given to the Owner and/or the Participant
         or the Designated Beneficiary under this Agreement shall be sufficient
         if in writing and hand-delivered, or sent by mail, to the last known
         address of the Owner and/or the Participant, as the case may be.

15.      CREDITWORTHINESS OF INSURER; TAX CONSEQUENCES. The Participant and
         Owner assume all risk of the creditworthiness of the Insurer and
         acknowledge that the Corporation makes no representation or guarantee
         of the creditworthiness of any Insurer. The Participant and Owner
         acknowledge responsibility for all federal, state and local income,
         estate or gift tax consequences imposed on the Participant and Owner as
         a result of this Agreement and further acknowledge that the Corporation
         has not made any representations or guarantees of present or future tax
         consequences.

                                       7
<PAGE>   11

16.      ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
         between the parties hereto with regard to the subject matter of this
         Agreement and supersedes all previous negotiations, agreements and
         commitments in respect thereto. No oral explanation or oral information
         by the parties to this Agreement shall alter the meaning or
         interpretation of this Agreement.

         IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of
the date first written above.

                              PARKER-HANNIFIN CORORATION

                              By: /s/ Duane E. Collins
                                      Duane E. Collins
                                      President and Chief Executive Officer

                                    /s/ Michael J. Hiemstra
                                        Michael J. Hiemstra

                              THE IRREVOCABLE TRUST CREATING
                              VESTED TRUSTS FOR CHILDREN OF
                              M. J. HIEMSTRA DATED AUGUST 16, 1999

                              By: /s/ David J. Hiemstra
                                      David J. Hiemstra, Trustee

                                       8
<PAGE>   12

                                    EXHIBIT 1

                              COLLATERAL ASSIGNMENT

         This Collateral Assignment (this "Assignment") is made and entered into
as of October 29, 1999, by and between the Irrevocable Trust Creating Vested
Trusts for Children of M. J. Hiemstra dated August 16, 1999 (the "Owner"), as
the owner of a life insurance policy, No. 20039806 (the "Policy"), issued by
John Hancock Life Insurance Company (the "Insurer"), on the lives of Michael J.
Hiemstra (the "Participant") and Kathleen M. Hiemstra, Participant's wife (the
"Wife"), and Parker-Hannifin Corporation, an Ohio corporation (the
"Corporation").

                                    RECITALS

A.       The Corporation desires to help the Owner provide life insurance for
         the benefit and protection of the Participant's family or beneficiary
         by providing funds from time to time to pay the premiums due on the
         Policy as more specifically provided in the Executive Estate Protection
         Agreement entered into between the Participant, the Owner and the
         Corporation as of the date hereof (the "Agreement"); and

B.       In consideration of the Corporation agreeing to provide such funds in
         accordance with the terms and conditions of the Agreement, the Owner
         agrees to grant to the Corporation, as a security interest in the
         Policy, a collateral security interest for the payment of the
         Corporation's Collateral Interest (as defined in the Agreement).

                                    AGREEMENT

NOW, THEREFORE, in consideration of the foregoing, and the mutual agreements and
covenants set forth below, the parties to this Assignment agree as follows:

1.       ASSIGNMENT. The Owner hereby assigns, transfers and sets over to the
         Corporation, and its successors and assigns, those certain rights and
         interests described in the Agreement that are to be assigned to the
         Corporation in accordance with the Agreement. Furthermore, this
         Assignment is made, and the Policy is to be held as collateral security
         for, any and all liabilities of the Owner to the Corporation, either
         now existing, or that may hereafter arise, pursuant to the terms of the
         Agreement.

2.       SIGNATURES.

         (a)      To facilitate the operation of this Assignment, the parties
                  agree that the Insurer is hereby notified that the following
                  rights under the Policy may be exercised while the Assignment
                  is in effect without the signature or consent of any other
                  party:

                  (i)      The Owner may sign a request to change the
                           beneficiary under the Policy without the signature or
                           consent of the Corporation.

                                       1
<PAGE>   13

                  (ii)     The Corporation may sign an instruction to the
                           Insurer to pay an amount equal to the Corporation's
                           Collateral Interest from the Policy's Cash Surrender
                           Value to the Corporation without the Participant's or
                           the Owner's signature or consent; provided that the
                           Corporation simultaneously delivers to the Insurer a
                           notarized statement that the Corporation is
                           exercising its rights in accordance with Section 6(c)
                           of the Agreement.

         (b)      The exercise of any other right under the Policy not
                  specifically set forth above shall be exercised with the
                  signature of both the Corporation and the Owner.

3.       POLICY PROCEEDS. Any amount payable from the Policy during the
         Participant's or the Wife's lives or at the Decedent's (as defined in
         the Agreement) death shall first be paid to the Corporation to the
         extent of its Collateral Interest or the Corporation's Death Benefit
         (as defined in the Agreement), respectively. Any balance will be paid
         to the Owner during the Participant's or the Wife's lifetime or to the
         Designated Beneficiary (as defined in the Agreement) upon or after the
         Decedent's death. A settlement option may be elected by the recipient
         of the proceeds. For purposes of this Section, the amount of the
         Collateral Interest or Corporation's Death Benefit shall be determined
         for purposes of the Insurer by a written statement delivered to the
         Insurer and signed by the Corporation.

4.       ENDORSEMENT. The Corporation shall hold the Policy while this
         Assignment is operative and, upon request, forward the Policy to the
         Insurer, without unreasonable delay, for endorsement of any designation
         or change of beneficiary, any election of optional mode of settlement,
         or the exercise of any other right reserved by the Owner in this
         Assignment.

5.       INSURER. The Insurer is hereby authorized to recognize the
         Corporation's claims to rights hereunder without investigating the
         reason for any action taken by the Corporation, the validity or amount
         of any of the liabilities of the Owner to the Corporation under the
         Agreement, the existence of any default therein, the giving of any
         notice required herein, or the application to be made by the
         Corporation of any amounts to be paid to the Corporation. The Insurer
         shall not be responsible for the sufficiency or validity of this
         Assignment and is not a party to the Agreement (or any other similar
         executive life insurance agreement) between the Corporation and the
         Owner or the Participant.

6.       RELEASE OF ASSIGNMENT. Upon the full payment of the Corporation's
         Collateral Interest in accordance with the terms and conditions of this
         Assignment and the Agreement, the Corporation shall release to the
         Owner, if the Owner retains the Policy in accordance with the
         Agreement, the Policy and all specific rights included in this
         Assignment.

7.       AMENDMENT OF ASSIGNMENT. This Assignment shall not be modified, amended
         or terminated, except by a writing signed by all the parties hereto.

8.       NO RESTRICTION ON ASSIGNMENT. This Assignment does not limit the
         rights of the Owner to assign the rights it has retained under the
         Policy which rights may be assigned in accordance with Section 5 of the
         Agreement.

                                       2
<PAGE>   14

9.       BINDING AGREEMENT. This Assignment shall be binding upon the heirs,
         administrators, executors and permitted successors and assigns of each
         party to this Assignment.

10.      STATE LAW. This Assignment shall be subject to and be construed under
         the internal laws of the State of Ohio, without regard to its conflicts
         of law principles.

11.      VALIDITY. In case any provision of this Assignment shall be illegal or
         invalid for any reason, said illegality or invalidity shall not affect
         the remaining parts of this Assignment, but this Assignment shall be
         construed and enforced as if such illegal or invalid provision had
         never been inserted in this Assignment.

         IN WITNESS WHEREOF, the Owner and the Corporation have signed this
Assignment as of the date first written above.

THE IRREVOCABLE TRUST CREATING              PARKER-HANNIFIN CORPORATION
VESTED TRUSTS FOR CHILDREN OF
M. J. HIEMSTRA DATED AUGUST 16, 1999

By: /s/ David J. Hiemstra                   By: /s/ Duane E. Collins
        David J. Hiemstra, Trustee                  Duane E. Collins
                                                    President and
                                                    Chief  Executive Officer

FILED WITH THE INSURER:

/s/ Charles Defilippo                       Date: 12/23/99
Insurer

The John Hancock Mutual Life Insurance Company without assuming any
responsibility for the validity or the sufficiency of this instrument, has on
this date, filed a duplicate thereof at it's Home Office.

                                Date 12/23/99

                  JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY

                    By  /s/ Bruce Skrine - Attorney at Law
                                  Secretary

                                       3<PAGE>   1
                                                                     Exhibit 4.3

                                                                  Execution Copy

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

                                     AMERCO

                                       TO

                          THE BANK OF NEW YORK, TRUSTEE

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

                          SECOND SUPPLEMENTAL INDENTURE
                          DATED AS OF FEBRUARY 4, 2000

                                       TO

                                SENIOR INDENTURE
                            DATED AS OF APRIL 1, 1999

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

                           8.80% SENIOR NOTES DUE 2005

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

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page(s)
                                                                            -------
<S>                                                                         <C>
RECITALS OF THE COMPANY..................................................      1

ARTICLE ONE   DEFINITIONS AND OTHER PROVISIONS OF SPECIAL APPLICATION....      1

      SECTION 101.  Definitions..........................................      1
      SECTION 102.  Senior Indenture.....................................      7
      SECTION 103.  Counterparts.........................................      7

ARTICLE TWO   FORM OF THE NOTES..........................................      7

      SECTION 201.  Form of the Face of the Notes........................      7
      SECTION 202.  Form of the Reverse of the Notes.....................      9
      SECTION 203.  Form of the Certificate of Authentication............     14

ARTICLE THREE   GENERAL TERMS AND CONDITIONS OF THE NOTES................     15

      SECTION 301.  Designation of Securities and Amounts Thereof........     15
      SECTION 302.  Payment of Principal and Interest....................     15
      SECTION 303.  Ranking..............................................     16
      SECTION 304.  Book-Entry System....................................     16

ARTICLE FOUR   SATISFACTION AND DISCHARGE................................     17

      SECTION 401.  Defeasance of the Notes..............................     17

ARTICLE FIVE   REMEDIES..................................................     18

      SECTION 501.  Events of Default....................................     18

ARTICLE SIX   COVENANTS..................................................     18

      SECTION 601.  Limitation on Liens Securing Indebtedness............     18
      SECTION 602.  Limitation on Sale and Leaseback.....................     20
      SECTION 603.  Restrictive Agreements...............................     20
      SECTION 604.  Defeasance of Certain Obligations....................     21

ARTICLE SEVEN   PURCHASE OF SECURITIES...................................     21

      SECTION 701.  Purchase of Securities at the Option of Holders Upon
                    a Change in Control..................................     21

ARTICLE EIGHT   MODIFICATIONS............................................     23

      SECTION 801.  Modification or Amendment............................     23
</TABLE>

                                       i
<PAGE>   3

            SECOND SUPPLEMENTAL INDENTURE, dated as of the 4th day of February,
2000 (this "Supplemental Indenture"), between AMERCO, a corporation duly
organized and existing under the laws of the State of Nevada (herein called the
"Company"), having its principal office at 1325 Airmotive Way, Suite 100, Reno,
Nevada 89502-3239, and The Bank of New York, a New York banking corporation,
having its principal corporate trust office in New York, New York, as Trustee
(herein called the "Trustee") under the Senior Indenture dated as of April 1,
1999 between the Company and the Trustee (the "Senior Indenture").

                             RECITALS OF THE COMPANY

            The Company has executed and delivered the Senior Indenture to the
Trustee to provide for the issuance of its senior unsecured debentures, notes or
other evidences of indebtedness, to be issued from time to time in one or more
series as determined by the Company in accordance with the terms of the Senior
Indenture, in an unlimited aggregate principal amount which may be authenticated
and delivered thereunder as provided in the Senior Indenture.

            Pursuant to the terms of the Senior Indenture, the Company desires
to provide for the establishment of a new series of notes to be known as its
8.80% Senior Notes Due 2005 (said series being hereinafter referred to as the
"Notes"), the form and substance of such Notes and the terms, provisions and
conditions thereof to be set forth as provided in the Senior Indenture and this
Supplemental Indenture.

            All things necessary to make this Supplemental Indenture a valid
agreement of the Company, in accordance with its terms, have been done.

            NOW THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

            For and in consideration of the premises and the purchase of the
Notes by the Holders thereof (as defined below), it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the Notes as
follows:

                                   ARTICLE ONE

                        DEFINITIONS AND OTHER PROVISIONS
                             OF SPECIAL APPLICATION

SECTION 101.  Definitions.

            For all purposes of this Supplemental Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

<PAGE>   4

                  (1) terms used herein and not otherwise defined herein shall
      have the respective meanings assigned thereto in the Senior Indenture,
      whether by cross-reference or otherwise;

                  (2) the words "herein," "hereof" and "hereunder" and other
      words of similar import, when used in this Supplemental Indenture, refer
      to this Supplemental Indenture as a whole and not to any particular
      Article, Section or other subdivision thereof; and

                  (3) the terms defined in this Article have the meanings
      assigned to them in this Article and include the plural as well as the
      singular, as follows:

            "Adjusted Treasury Rate" means, with respect to any redemption date,
the rate per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price of the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for that redemption date.

            "Attributable Debt" means indebtedness for money borrowed deemed to
be incurred in respect of a Sale and Leaseback Transaction and shall be, at the
date of determination, the present value (discounted at the actual rate of
interest implicit in such transaction, compounded annually), of the total
obligations of the lessee for rental payments during the remaining term of the
lease included in such Sale and Leaseback Transaction, after excluding all
amounts required to be paid on account of maintenance and repairs, insurance,
taxes, assessments, water and utility rates and similar charges.

            "Capital Stock" means, with respect to any Person, any and all
shares or other equivalents (however designated) of corporate stock, partnership
interests, or any other participation, right, warrant, option or other interest
in the nature of an equity interest in such Person, but excluding debt
securities convertible or exchangeable into such equity interest.

            "Capitalized Lease" means any lease the obligation for Rentals with
respect to which is required to be capitalized on a consolidated balance sheet
of the lessee and its Subsidiaries in accordance with GAAP.

            "Change in Control" means the occurrence of (i) any consolidation,
share exchange or merger regarding the Company in which the Company is not the
continuing or surviving corporation or where the Company's Voting Stock would be
converted into cash, securities or other property, other than a merger in which
the Holders of the Company's Voting Stock immediately prior to the merger have
the same or greater direct or indirect proportionate ownership of the surviving
corporation's Voting Stock immediately after the merger as they had of the
Company's Voting Stock immediately before the merger, or (ii) any person or
group (as either such term is used in Section 13(d) and 14(d) of the Exchange
Act), including Affiliates of the Company (but not including the Company, the
Company's Subsidiaries, employee stock ownership plans or employee benefit plans
of the Company or the Company's Subsidiaries or Permitted Persons), filing a
Schedule 13D or 14D-1 (or any successor schedule, form or report under the
Exchange Act) disclosing that such a person has become the beneficial owner (as

                                       2
<PAGE>   5

defined in Rule 13d-2 and 13d-5 under the Exchange Act), directly or indirectly,
of 50% or more of the Company's Voting Stock.

            "Change in Control Notice" has the meaning specified in Section 701
hereof.

            "Change in Control Payment Date" has the meaning specified in
Section 701 hereof.

            "Change in Control Purchase" has the meaning specified in Section
701 hereof.

            "Change in Control Triggering Event" means the occurrence of both a
Change in Control and a Rating Decline with respect to the Notes.

            "Comparable Treasury Issue" means the United States Treasury
security selected by the Quotation Agent as having a maturity comparable to the
remaining term of the Notes to be redeemed that would be utilized, at the time
of a selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of comparable maturity to the remaining
term of the Notes.

            "Comparable Treasury Price" means, with respect to any redemption
date, (i) the average of the Reference Treasury Dealer Quotations for such
redemption date, after excluding the highest and lowest Reference Treasury
Dealer Quotation, or (ii) if the Trustee obtains fewer than three Reference
Treasury Dealer Quotations, the average of the quotations.

            "Consolidated Net Tangible Assets" means, as of the date of any
determination thereof, the total amount of all assets of the Company and its
Consolidated Subsidiaries (less depreciation, depletion and other properly
deductible valuation reserves) after deducting Intangibles.

            "Consolidated Subsidiary" means any Subsidiary of the Company or of
any Consolidated Subsidiary which is consolidated with the Company for financial
reporting purposes in accordance with GAAP.

            "Default" means an event which, with the giving of notice or the
lapse of time, or both, would constitute an Event of Default.

            "Dollars" means the lawful currency of the United States of America.

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            "GAAP" means United States generally accepted accounting principles
as in effect as of the date of determination, unless otherwise stated.

            "Global Security" has the meaning specified in Section 304 hereof.

            "Good Faith Contest" means, with respect to any tax, assessment,
Lien, obligation, claim, liability, judgment, injunction, award, decree, order,
law, regulation, statute or similar item, any challenge or contest thereof by
appropriate proceedings timely initiated in good faith by the

                                       3
<PAGE>   6

Person subject thereto for which adequate reserves therefor have been taken in
accordance with GAAP.

            "indebtedness for money borrowed," when used with respect to the
Company or any Subsidiary, means any obligation of, or any obligation guaranteed
by, the Company or any Subsidiary for the repayment of borrowed money, whether
or not evidenced by bonds, debentures, notes or other written instruments, and
any deferred obligation of, or any such obligation guaranteed by, the Company
for the payment of the purchase price of Property or assets.

            "Intangibles" means all Intellectual Properties and all goodwill,
patents, trade names, trademarks, copyrights, franchises, experimental expense,
organization expense, unamortized debt discount and expense, deferred assets
(other than prepaid insurance, prepaid taxes, prepaid advertising, prepaid
licensing and other similar expenses prepaid in the ordinary course of
business), amounts invested in or advanced to or equity in the Company's
Subsidiaries other than Consolidated Subsidiaries less any writedowns thereof,
the excess of cost of shares acquired over book value of related assets, any
increase in the value of a fixed asset arising from a reappraisal, revaluation
or write-up thereof, and such other assets as are properly classified as
"intangible assets" in accordance with GAAP.

            "Intellectual Properties" means all material patents, patent
applications, copyrights, copyright applications, trade secrets, trade names and
trademarks, technologies, methods, processes or other proprietary properties or
information which are used by the Company and its Consolidated Subsidiaries in
the conduct of their business and are either owned by them or are used, employed
or practiced by them under valid and existing licenses, grants, "shop rights" or
other rights.

            "Investment Grade Rating" means a rating equal to or higher than
BBB- (or the equivalent) by Standard & Poor's Rating Group (or any successor to
the rating agency business thereof), BBB- (or the equivalent) by Fitch IBCA,
Inc. (or any successor to the rating agency business thereof) and BBB- (or the
equivalent) by Duff & Phelps Credit Rating Co. (or any successor to the rating
agency business thereof).

            "Issue Date" means the date of initial issuance of the Notes under
this Supplemental Indenture and the Senior Indenture.

            "Lien" means any interest in Property securing an obligation owed
to, or a claim by, a Person other than the owner of the Property, whether such
interest is based on the common law, statute or contract, and including but not
limited to the security interest or lien arising from a mortgage, encumbrance,
pledge, conditional sale or trust receipt or a lease, consignment or bailment
for security purposes. The term "Lien" shall include reservations, exceptions,
encroachments, easements, rights-of-way, covenants, conditions, restrictions,
bankers' liens, setoffs and similar arrangements, leases and other title
exceptions and encumbrances (including, with respect to stock, stockholder
agreements, voting trust agreements, buy-back agreements and all similar
arrangements) affecting Property. For the purposes hereunder, the Company or a
Consolidated Subsidiary shall be deemed to be the owner of any Property which it
has acquired or holds subject to a conditional sale agreement, Capitalized Lease
or other arrangement pursuant to which title to

                                       4
<PAGE>   7

the Property has been retained by or vested in some other Person for security
purposes and such retention or vesting shall constitute a Lien.

            "Permitted Persons" means (i) Edward J. Shoen, Mark V. Shoen,
James P. Shoen, Paul F. Shoen, Sophia M. Shoen and the spouse and lineal
descendants of each such individual, the spouses of each such lineal
descendants and the lineal descendants of such spouses, (ii) any trusts for
the primary benefit of, the executor or administrator of the estate of, or
other legal representative of, any of the individuals referred to in the
foregoing clause (i), and (iii) any corporation with respect to which all the
Voting Stock thereof is, directly or indirectly, owned by any of the
individuals referred to in the preceding clause (i).

            "Priority Debt" means (i) indebtedness for money borrowed of any
Consolidated Subsidiary, except indebtedness for money borrowed issued to and
held by the Company or a Wholly Owned Consolidated Subsidiary, and (but without
duplication) (ii) Secured Indebtedness.

            "Property" means any kind of property or asset, whether real,
personal or mixed, and whether tangible or intangible.

            "Purchase Date" has the meaning specified in Section 701 hereof.

            "Purchase Notice" has the meaning specified in Section 701 hereof.

            "Purchase Price" has the meaning specified in Section 701 hereof.

            "Quotation Agent" means the Reference Treasury Dealer appointed by
the Company.

            "Rating Agencies" means Standard & Poor's Rating Group, Fitch
IBCA, Inc. and Duff & Phelps Credit Rating Co. or any successor to the
respective rating agency businesses thereof.

            "Rating Date" means the date which is 90 days prior to the earlier
of (i) a Change in Control and (ii) public notice of the occurrence of a Change
in Control or of the intention of the Company to effect a Change in Control.

            "Rating Decline" means, with the respect to the Notes, the
occurrence of the following on, or within 90 days after, the date of public
notice of the occurrence of a Change in Control or of the intention by the
Company to effect a Change in Control (which period shall be extended so long as
the rating of such Notes is under publicly announced consideration for possible
downgrade by any of the Rating Agencies): (a) in the event the Notes were
assigned an Investment Grade Rating by at least two of the three Rating Agencies
on the Rating Date, the rating of the Notes by both Standard & Poor's Rating
Group and Fitch IBCA, Inc. shall decrease below an Investment Grade Rating; or
(b) in the event the Notes were rated below an Investment Grade Rating by at
least two of the three Rating Agencies on the Rating Date, the rating of the
Notes by either Standard & Poor's Rating Group or Fitch IBCA, Inc. shall
decrease by one or more gradations (including gradations within rating
categories as well as between rating categories).

                                       5
<PAGE>   8

            "Reference Treasury Dealer" means (i) each of Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Chase Securities Inc. and their respective
successors; however, if any of the foregoing shall cease to be a primary U.S.
Government securities dealer in New York City (a "Primary Treasury Dealer"), the
Company will substitute another Primary Treasury Dealer; and (ii) any other
Primary Treasury Dealer selected by the Company.

            "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Company, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding the redemption date.

            "Rentals" means and includes, as of the date of any determination
thereof, all fixed payments (including as such all payments which the lessee is
obligated to make to the lessor on termination of the lease or surrender of the
Property) payable by the Company or a Consolidated Subsidiary, as lessee or
sublessee under a lease of real or personal Property, but shall be exclusive of
any amounts required to be paid by the Company or a Consolidated Subsidiary
(whether or not designated as rents or additional rents) on account of
maintenance, repairs, insurance, taxes and similar charges. Fixed rents under
any so-called "percentage leases" shall be computed solely on the basis of the
minimum rents, if any, required to be paid by the lessee regardless of sales
volume or gross revenues.

            "Sale and Leaseback Transaction" has the meaning specified in
Section 602 hereof.

            "Secured Indebtedness" means any indebtedness for money borrowed,
whether of the Company or any Consolidated Subsidiary, secured by any Lien on
any Property of the Company or any Consolidated Subsidiary.

            "Subsidiary" means a Person more than 50% of the outstanding Voting
Stock of which is owned, directly or indirectly, by the Company or by one or
more other Subsidiaries, or by the Company and one or more other Subsidiaries.

            "Voting Stock" of a Person means all classes of Capital Stock of
such Person then outstanding and normally entitled to vote in the election of
directors (or Persons performing similar functions) or to direct the business
and affairs of the issuer of such Capital Stock in the absence of contingencies.

            "Wholly Owned Consolidated Subsidiary" means any Consolidated
Subsidiary all of the outstanding Capital Stock of which (except for directors'
qualifying shares to the extent required by applicable law) is owned by the
Company and/or its Wholly Owned Consolidated Subsidiaries.

                                       6
<PAGE>   9

SECTION 102.  Senior Indenture.

            The Senior Indenture, as supplemented by this Supplemental
Indenture, is in all respects ratified and confirmed, and this Supplemental
Indenture shall be deemed part of the Indenture in the manner and to the extent
herein and therein provided.

SECTION 103.  Counterparts.

            This Supplemental Indenture may be executed in any number of
counterparts each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

                                   ARTICLE TWO

                                FORM OF THE NOTES

SECTION 201.  Form of the Face of the Notes.

            The face of the Notes is to be substantially in the following form:

      [To be included on the face of any Note that is a Global Security:

                  This Note is a Global Security within the meaning of the
      Supplemental Indenture hereinafter referred to and is registered in the
      name of a Depository or a nominee of a Depository or a successor
      depository. This Note is not exchangeable for Notes registered in the name
      of a Person other than the Depository or its nominee except in the limited
      circumstances described in the Senior Indenture, and no transfer of this
      Note (other than a transfer of this Note as a whole by the Depository to a
      nominee of the Depository or by a nominee of the Depository to the
      Depository or another nominee of the Depository) may be registered except
      in the limited circumstances described in the Supplemental Indenture.]

      [To be included on the face of any Note that is a Global Security where
      DTC is the Depository:

                  Unless this Note is presented by an authorized representative
      of The Depository Trust Company, a New York corporation ("DTC"), to the
      Company (as defined below) or its agent for registration of transfer,
      exchange or payment, and any certificate issued is registered in the name
      of Cede & Co. or in such other name as is requested by an authorized
      representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
      OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
      owner hereof, Cede & Co., has an interest herein.]

                                       7
<PAGE>   10

                                        AMERCO

                             8.80% Senior Notes Due 2005

      No.__________                                                $__________
      CUSIP No. 023586AF7

                  AMERCO, a corporation duly organized and existing under the
      laws of Nevada (herein called the "Company," which terms includes any
      successor Person under the Senior Indenture hereinafter referred to), for
      value received, hereby promises to pay to ________________ or registered
      assigns, the principal sum of _______________________ on February 4, 2005
      and to pay interest thereon from February 4, 2000 or from the most recent
      Interest Payment Date on which interest has been paid or duly provided
      for, semi-annually on February 4th and August 4th of each year (each an
      "Interest Payment Date") commencing August 4, 2000, at the rate of 8.80%
      per annum (subject to an increase due to the occurrence of certain rating
      events, as set forth in more detail on the reverse hereof), until the
      principal hereof is paid or made available for payment, and (to the extent
      that the payment of such interest shall be legally enforceable) at the
      rate of 8.80% per annum on any overdue principal (and premium, if any) and
      on any overdue installment of interest.

                  All capitalized terms used herein shall have the respective
      meanings assigned thereto in the Second Supplemental Indenture dated as of
      February 4, 2000 (the "Supplemental Indenture") between the Company and
      The Bank of New York, as Trustee (the "Trustee," which term includes any
      successor trustee under the Senior Indenture referred to below), whether
      by cross-reference or otherwise and in the Senior Indenture. The
      Supplemental Indenture is one of the supplemental indentures referred to
      in and executed in accordance with the terms of the Senior Indenture dated
      as of April 1, 1999 between the Company and the Trustee. The interest so
      payable, and punctually paid or duly provided for, on any Interest Payment
      Date will, as provided in the Senior Indenture and the Supplemental
      Indenture hereinafter referred to, be paid to the Person in whose name
      this Note (or one or more Predecessor Note) is registered at the close of
      business on the Regular Record Date for such interest, which shall be
      January 20th or July 20th (whether or not a Business Day), as the case may
      be, next preceding such Interest Payment Date. Any such interest not so
      punctually paid or duly provided for will forthwith cease to be payable to
      the Holder on such Regular Record Date and may either be paid to the
      Person in whose name this Note (or one or more Predecessor Notes) is
      registered at the close of business on a Special Record Date for the
      payment of such Defaulted Interest to be fixed by the Trustee, notice
      whereof shall be given to Holders of Notes not less than 10 days prior to
      such Special Record Date, or be paid at any time in any other lawful
      manner not inconsistent with the requirements of any securities exchange
      on which the Notes may be listed, and upon such notice as may be required
      by such exchange, all as more fully provided in said Senior Indenture and
      Supplemental Indenture.

                  Payment of the principal of (and premium, if any) and any such
      interest on this Note will be made in the manner set forth in the Senior
      Indenture and the Supplemental

                                       8
<PAGE>   11

      Indenture, in immediately available funds in such coin or currency of the
      United States of America as at the time of payment is legal tender for
      payment of public and private debts; provided, however, that at the option
      of the Company payment of interest may be made by: (1) wire transfer on
      the date of payment in immediately available federal funds or next day
      funds to an account specified by written notice to the Trustee from any
      Holder of Notes; (2) any similar manner that such Holder may designate in
      writing to the Trustee; or (3) by check mailed to the address of the
      Holder in the case of a Note that is not a Global Security. In the event
      that the Maturity or Interest Payment Date is not a Business Day, then
      payment of interest payable on such Maturity or Interest Payment Date, as
      the case may be, shall be made on the next succeeding Business Day (and
      without any interest or other payment in respect of any such delay), in
      each case with the same force and effect as if made on such Maturity or
      Interest Payment Date.

                  Reference is hereby made to the further provisions of this
      Note set forth on the reverse hereof and of the Supplemental Indenture and
      the Senior Indenture, which further provisions shall for all purposes have
      the same effect as if set forth at this place. In the event of any
      conflict between this Note on one hand and the Supplemental Indenture and
      the Senior Indenture, on the other, the terms of the Supplemental
      Indenture and the Senior Indenture shall govern.

                  Unless the certificate of authentication hereon has been
      executed by the Trustee by manual signature, this Note shall not be
      entitled to any benefit under the Senior Indenture or the Supplemental
      Indenture or be valid or obligatory for any purpose.

                  IN WITNESS WHEREOF, the Company has caused this instrument to
      be duly executed.

      Dated:  _______________
                                          AMERCO

                                          By:________________________
                                             Name:
                                             Title:

                                          Attest:______________________
                                             Name:
                                             Title:

SECTION 202.  Form of the Reverse of the Notes.

            The Reverse of the Notes is to be substantially in the following
form:

                  This Note is one of a duly authorized issue of securities of
      the Company (the "Notes) issued under the Senior Indenture and the
      Supplemental Indenture, to which Senior

                                       9
<PAGE>   12

      Indenture and Supplemental Indenture reference is hereby made for a
      statement of the respective rights, limitations of rights, duties and
      immunities thereunder of the Company, the Trustee and the Holders of the
      Notes and of the terms upon which the Notes are, and are to be,
      authenticated and delivered. This Note is one of the series designated on
      the face hereof, limited in aggregate principal amount to $200,000,000.

                  Pursuant to Section 701 of the Supplemental Indenture, upon
      the occurrence of a Change in Control Triggering Event with respect to the
      Notes, each Holder of such Notes shall have the right to require the
      Company to purchase such Holder's Notes, in whole or in part, in a
      principal amount that is an integral multiple of $1,000, at a purchase
      price equal to 101% of the principal amount thereof on any Change in
      Control Payment Date plus accrued and unpaid interest, if any, to the
      Change in Control Payment Date. The Holder of this Note may elect to have
      this Note or a portion thereof, in an authorized denomination purchased by
      completing the form entitled "Option of Holder to Elect Purchase"
      appearing below and tendering this Note pursuant to the Change in Control
      Notice.

                  In the event that a Note is purchased in part only, a new Note
      or Notes of like tenor for the unpurchased portion hereof will be issued
      in the name of the Holder hereof upon the cancellation hereof, provided
      that each new Note issued shall be in a principal amount in denominations
      of $1,000 and integral multiples thereof.

                  The Notes will be redeemable, in whole or in part, at the
      Company's option at any time at a Redemption Price equal to the greater of
      (i) 100% of the principal amount of the Notes, and (ii) as determined by
      the Quotation Agent, the sum of the present values of the remaining
      scheduled payments of principal and interest on the Notes (not including
      any portion of those payments of interest accrued as of the Redemption
      Date) discounted to the Redemption Date on a semi-annual basis assuming a
      360 day year consisting of twelve 30 day months at the Adjusted Treasury
      Rate plus 35 basis points plus, in each case, accrued and unpaid interest
      on the Notes to the Redemption Date. In the case of a partial redemption,
      pursuant to Section 1103 of the Senior Indenture, selection of the Notes
      for redemption will be made pro rata, by lot or such other method as the
      Trustee in its sole discretion deems appropriate and fair. No Notes of a
      principal amount of $1,000 or less will be redeemed in part. The Notes
      shall not be subject to any sinking fund.

                  The Notes shall be general unsecured obligations of the
      Company. The Notes shall rank pari passu in right of payment with all
      senior indebtedness of the Company and senior in right of payment to all
      future subordinated indebtedness of the Company.

                  If an Event of Default with respect to the Notes shall occur
      and be continuing, the principal of the Notes may be declared due and
      payable in the manner and with the effect provided in the Senior Indenture
      and the Supplemental Indenture.

                  The Senior Indenture and the Supplemental Indenture permit,
      with certain exceptions as therein provided, the amendment thereof and the
      modification of the rights

                                       10
<PAGE>   13

      and obligations of the Company and the rights of the Holders of the Notes
      to be affected at any time by the Company and the Trustee with the consent
      of the Holders of a majority of aggregate principal amount or at least
      two-thirds of the aggregate principal amount, as applicable, of the Notes
      at the time Outstanding. The Senior Indenture and the Supplemental
      Indenture also contain provisions permitting the Holders of specified
      percentages in principal amount of the Notes at the time Outstanding, on
      behalf of the Holders of all Notes, to waive compliance by the Company
      with certain provisions of the Senior Indenture and the Supplemental
      Indenture and certain past defaults under the Senior Indenture and the
      Supplemental Indenture and their consequences. Any such consent or waiver
      by the Holder of this Note shall be conclusive and binding upon such
      Holder and upon all future Holders of this Note and of any Note issued
      upon the registration of transfer hereof or in exchange herefor or in lieu
      hereof, whether or not notation of such consent or waiver is made upon
      this Note.

                  No reference herein to the Senior Indenture and the
      Supplemental Indenture and no provision of this Note or of the Senior
      Indenture or the Supplemental Indenture shall alter or impair the
      obligation of the Company, which is absolute and unconditional, to pay the
      principal of and any premium and interest on this Note at the times, place
      and rate, and in the coin or currency, herein prescribed.

                  As provided in the Senior Indenture and the Supplemental
      Indenture, and subject to certain limitations therein set forth, the
      transfer of this Note is registrable in the Security Register, upon
      surrender of this Note for registration of transfer at the office or
      agency of the Company in any place where the principal of and any premium
      and interest on this Note are payable, duly endorsed by, or accompanied by
      a written instrument of transfer in form satisfactory to the Company and
      the Security Registrar duly executed by, the Holder hereof or his attorney
      duly authorized in writing, and thereupon one or more new Notes of like
      tenor, of authorized denominations and for the same aggregate principal
      amount, will be issued to the designated transferee or transferees.

                  The Senior Indenture and the Supplemental Indenture contain
      provisions for defeasance at any time of (a) the entire amount of the
      Notes and (b) certain restrictive covenants and related Events of Default,
      in each case, upon compliance with certain conditions set forth therein.

                  The Notes are issuable only in registered form without coupons
      in denominations of $1,000 and any integral multiple thereof. As provided
      in the Senior Indenture and the Supplemental Indenture and subject to
      certain limitations therein set forth, Notes are exchangeable for a like
      aggregate principal amount of Notes of like tenor of a different
      authorized denomination, as requested by the Holder surrendering the same.

                  No service charge shall be made for any such registration of
      transfer or exchange, but the Company may require payment of a sum
      sufficient to cover any tax or other governmental charge payable in
      connection therewith.

                                       11
<PAGE>   14

                  Prior to due presentment of this Note for registration of
      transfer, the Company, the Trustee and any agent of the Company or the
      Trustee may treat the Person in whose name this Note is registered as the
      owner hereof for all purposes, whether or not this Note be overdue, and
      neither the Company, the Trustee nor any such agent shall be affected by
      notice to the contrary.

                  This Note shall be governed by and construed in accordance
      with the laws of the State of New York without giving effect to principles
      of conflicts of law.

                                       12
<PAGE>   15

                       OPTION OF HOLDER TO ELECT PURCHASE
                             (check as appropriate)

            In connection with the Change in Control Notice made pursuant to
            Section 701 of the Supplemental Indenture, the undersigned
            registered Holder hereby elects to have

            [  ]  the entire principal amount

            [  ]  $________ ($1,000 in principal amount or an integral
                  multiple thereof) of this Note

            repurchased by the Company. The undersigned hereby directs the
            Trustee or Paying Agent to pay it or __________________ an amount in
            cash equal to 101% of the principal amount indicated in the
            preceding sentences plus accrued and unpaid interest thereon, if
            any, to the Change in Control Payment Date.

      Dated:__________________

      ______________________________      ______________________________
      Signature of Registered Holder      Signature Guaranteed

      NOTICE:     The signature to the foregoing must correspond to the Name
                  as written upon the face of this Note in every particular,
                  without alteration or any change whatsoever.

                                       13
<PAGE>   16

                                 TRANSFER NOTICE

                  FOR VALUE RECEIVED, the undersigned registered Holder hereby
      sell(s), assign(s) and transfer(s) unto

            Insert Taxpayer Identification Number:

            ____________________________________________

            Please print or type name and address, including the zip code of the
            assignee:

            ____________________________________________

      the attached Note and all rights thereunder, hereby irrevocably
      constituting and appointing

            ____________________________________________

      as attorney to transfer said Note on the books of the Company with full
      power and substitution in the premises.

      Date:_____________________

                             ___________________________________________________
                             NOTE:  The signature to this assignment must
                                    correspond with the name as written upon the
                                    face of the attached Note in every
                                    particular, without alteration or change
                                    whatsoever.

SECTION 203.  Form of the Certificate of Authentication.

            The Trustee's Certificate of Authentication to be endorsed on the
Notes is to be substantially in the following form:

                                       14
<PAGE>   17

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Securities of the series designated therein
      referred to in the within-mentioned Senior Indenture.

                                          THE BANK OF NEW YORK,
                                            as Trustee

                                          By:__________________________
                                                Authorized Signatory

                                  ARTICLE THREE

                    GENERAL TERMS AND CONDITIONS OF THE NOTES

SECTION 301.  Designation of Securities and Amounts Thereof.

            There shall be and is hereby authorized a single series of
Securities designated the "8.80% Senior Notes Due 2005" (herein called the
"Notes"), limited in aggregate principal amount to $200,000,000.

SECTION 302.  Payment of Principal and Interest.

            The Notes shall mature and the principal shall be due and payable in
Dollars to the Holders thereof (subject to Section 304 hereof), together with
all accrued and unpaid interest thereon, on February 4, 2005 (the "Maturity" for
the purposes of the Notes under this Supplemental Indenture).

            The Notes shall bear interest at 8.80% per annum, subject to the
provisions of the following paragraph, from and including February 4, 2000 or
from the most recent Interest Payment Date (defined below) on which interest has
been paid or provided for until the principal thereof becomes due and payable,
and on any overdue principal and (to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at the
same rate per annum. Interest on the Notes shall be payable semiannually in
arrears in Dollars on February 4th and August 4th of each year, commencing on
August 4, 2000 (each such date, an "Interest Payment Date" for the purposes of
the Notes under this Supplemental Indenture). Payments of interest shall be made
to the Person in whose name a Note (or predecessor Note) is registered (which
shall initially be the Depository, as set forth in Section 304 hereof) at the
close of business on the January 20th or July 20th, as the case may be, next
preceding such Interest Payment Date (each such date, a "Regular Record Date"
for the purposes of the Notes under this Supplemental Indenture).

            For so long as the Notes are represented by one or more Global
Securities, all payments of principal and interest shall be made by the Company
in immediately available funds in

                                       15
<PAGE>   18

such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts, provided that the
Company may at its option pay interest by check in the case of a Note that is
not a Global Security.

            In the event that the Maturity or any Interest Payment Date is not a
Business Day, then payment of interest payable on such Maturity or Interest
Payment Date, as the case may be, shall be made on the next succeeding Business
Day (and without any interest or other payment in respect of any such delay), in
each case with the same force and effect as if made on such Maturity or Interest
Payment Date.

            For so long as and to the extent that the Notes are represented by
one or more Global Securities pursuant to Section 304 hereof, payments of
principal and interest shall be made in accordance with said Section 304. All
other payments of principal and interest shall be made to the registered Holders
thereof by a Paying Agent that the Company shall maintain, in the event that
definitive Notes shall have been issued, in The City of New York.

            The Notes are subject to redemption by the Company in whole or in
part in the manner described therein and shall not be subject to any sinking
fund.

SECTION 303.  Ranking.

            The Notes shall be general unsecured obligations of the Company. The
Notes shall rank pari passu in right of payment with all senior indebtedness of
the Company and senior in right of payment to all subordinated indebtedness of
the Company.

SECTION 304.  Book-Entry System.

            The Notes shall be represented by one or more permanent global notes
(each, a "Global Security") deposited with, or on behalf of, The Depositary
Trust Company, as Depository under the Senior Indenture and this Supplemental
Indenture (the "Depository"), and registered in the name of the Depository's
nominee. Except as set forth in the following paragraph, (1) owners of
beneficial interests in a Global Security shall not be entitled to have Notes
represented by such Global Security registered in their names, will not receive
or be entitled to receive physical delivery of Notes in definitive form and
shall not be considered the owners or Holders thereof under the Senior Indenture
and this Supplemental Indenture and (2) each Global Security may be transferred,
in whole and not in part, only to another nominee of the Depository or to a
successor of the Depository or its nominee. Accordingly, beneficial interests in
the Notes shall be shown on, and transfers thereof shall be effected only
through, records maintained by the Depository and its participants.

            Notwithstanding any provisions of Section 305 of the Senior
Indenture, no Note that is a Global Security shall be registered for transfer or
exchange, or be authenticated and delivered, and owners of beneficial interests
in any Global Security will not be entitled to receive Notes in definitive form
and will not be considered Holders of Notes unless (1) the Depository notifies
the Company that it is unwilling or unable to continue as Depository for such
Global Security or if at any time the Depository ceases to be a clearing agency
registered under the Exchange Act, (2) the

                                       16
<PAGE>   19

Company executes and delivers to the Trustee a Company Order that such Global
Security shall be so exchangeable or (3) there shall have occurred and be
continuing a Default or an Event of Default. In such circumstances, upon
surrender by the Depository or a successor depository of any Global Security,
Notes in definitive form will be issued to each Person that the Depository or
successor depository identifies as the beneficial owner of the related Notes.
Upon such issuance, the Trustee is required to register such Notes in the name
of, and cause such Notes to be delivered to, such Person or Persons (or nominees
thereof). Such Notes would be issued in fully registered form without coupons,
in denominations of $1,000 and integral multiples thereof.

            The Depository shall be permitted to take any action permitted to be
taken by an owner or Holder of Notes only at the direction of one or more
participants in the Depository, as it may from time to time determine.

            Principal and interest payments on Notes registered in the name of
or held by the Depository or its nominee shall be made to the Depository or its
nominee, as the case may be, as the registered owner of the Global Security
representing such Notes. The Company and the Trustee shall treat the Persons in
whose names the Notes are registered as the Holders of such Notes for the
purpose of receiving payment of principal and interest on such Notes and for all
other purposes whatsoever. Therefore, none of the Company, the Trustee or any
Paying Agent has direct responsibility or liability for the payment of principal
and interest on the Notes to owners of beneficial interests in any Global
Security. Payments by direct and indirect participants in the Depository shall
be the responsibility of such participants.

            The Notes shall trade in the Depository's Same-Day Funds Settlement
System until Maturity (or until they are subject to repurchase pursuant to
Section 701 hereof or acceleration pursuant to Article Five of the Senior
Indenture), and secondary market trading activity in the Notes may be required
by the Depository to settle in immediately available funds.

SECTION 305.  Execution, Authentication, Delivery and Dating.

            The Notes shall be executed on behalf of the Company by its Chairman
of the Board, its Vice Chairman of the Board, its President, one of its Vice
Presidents or its Treasurer, under its corporate seal (whether in its original
or facsimile form) reproduced thereon and attested by its Treasurer, one of its
Assistant Treasurers, its Secretary or one of its Assistant Secretaries. The
signature of these officers on the Notes may be manual or facsimile.

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

SECTION 401.  Defeasance of the Notes.

            The Notes shall be subject to defeasance in accordance with the
provisions of Section 403 of the Senior Indenture.

                                       17
<PAGE>   20

                                  ARTICLE FIVE

                                    REMEDIES

SECTION 501.  Events of Default.

            For all purposes of the Senior Indenture and this Supplemental
Indenture relating to the Notes, the following shall be an Event of Default in
addition to the Events of Default enumerated in Section 501 of the Senior
Indenture:

      the failure to perform the obligations of the Company set forth in Section
      701 of the Supplemental Indenture (including the obligation to purchase
      the Notes required to be purchased following a Change in Control Purchase
      in accordance with the terms of the Change in Control Notice and the
      Supplemental Indenture).

                                   ARTICLE SIX

                                    COVENANTS

            The Company covenants and agrees for the benefit of the Holders of
the Notes that it will comply with all covenants contained in the Senior
Indenture and with such further covenants that are contained in this Article Six
and in any other provisions of this Supplemental Indenture.

SECTION 601.  Limitation on Liens Securing Indebtedness.

            The Company shall not, and shall not permit any Consolidated
Subsidiary to, create or incur, or suffer to be incurred or to exist, at any
time, any Lien on its or their Property, whether now owned or hereafter
acquired, or upon any income or profits therefrom, to secure the payment of any
indebtedness for money borrowed of the Company or of any Consolidated Subsidiary
or of any other Person, unless all obligations of the Company on or in respect
of the Notes are equally and ratably and validly secured by such Lien by
proceedings and documents reasonably satisfactory to the Trustee, except that
the provisions of this Section 601 shall not prohibit the following:

                  (a) Liens existing as of the Issue Date securing indebtedness
      for money borrowed of the Company and its Consolidated Subsidiaries
      outstanding on such date;

                  (b) Liens (i) incurred after the Issue Date given (on or
      within 120 days of the date of acquisition, construction or improvement)
      to secure the payment of the purchase price or construction costs incurred
      by the Company or a Consolidated Subsidiary in connection with the
      acquisition, construction or improvement of real and personal Property
      useful and intended to be used in carrying on the business of the Company
      or such Consolidated Subsidiary, or (ii) on fixed assets useful and
      intended to be used in carrying on the business of the Company or a
      Consolidated Subsidiary existing at the time of acquisition or
      construction thereof by the Company or such Consolidated Subsidiary or at
      the time of

                                       18
<PAGE>   21

      acquisition by the Company or a Consolidated Subsidiary of any business
      entity then owning such fixed assets, whether or not such existing Liens
      were given to secure the payment of the purchase price or construction
      costs of the fixed assets to which they attach, so long as Liens permitted
      by this subclause (ii) were not incurred, extended or renewed in
      contemplation of such acquisition or construction, provided that any such
      Liens permitted by this clause (b) shall attach solely to the Property
      acquired, constructed, improved or purchased.

                  (c)  Liens for taxes, assessments or other governmental
      levies or charges not yet due or which are subject to a Good Faith
      Contest;

                  (d) Liens incidental to the conduct of the Company's and its
      Subsidiaries' businesses or their ownership of Property and other assets
      not securing any indebtedness for money borrowed and not otherwise
      incurred in connection with the borrowing of money or obtaining of credit,
      and which do not in the aggregate materially diminish the value of the
      Company's or Subsidiaries' Property or assets when taken as a whole, or
      materially impair the use thereof in the operation of their businesses;

                  (e) Liens in respect of any interest or title of a lessor in
      any Property subject to a Capitalized Lease permitted under Section 602
      hereof;

                  (f) Liens arising in respect of judgments against the Company,
      except for any judgment in an amount in excess of $1,000,000 which is not
      discharged or execution thereof stayed pending appeal within 45 days after
      entry thereof;

                  (g)  Liens in favor of the Company or any Consolidated
      Subsidiary of the Company;

                  (h) Liens consisting of minor survey exceptions or minor
      encumbrances, easements or reservations, or rights of others for
      rights-of-way, utilities and other similar purposes, or zoning or other
      restrictions as to use of real Property, that are necessary for the
      conduct of the operations of the Company and its Subsidiaries or that
      customarily exist on properties of corporations engaged in similar
      businesses and are similarly situated and that do not in any event
      materially impair their use in the operations of the Company and its
      Subsidiaries; and

                  (i) Liens renewing, extending or refunding any Lien permitted
      by the preceding clauses of this Section 601; provided, however, that the
      principal amount of indebtedness for money borrowed secured by such Lien
      immediately prior thereto is not increased and such Lien is not extended
      to any other assets or Property.

            Notwithstanding the foregoing, the Company or any Consolidated
Subsidiary may create or assume Liens, in addition to those otherwise permitted
by the preceding clauses of this Section 601, securing indebtedness for money
borrowed of the Company or any Consolidated Subsidiary issued or incurred after
the Issue Date, provided that at the time of such issuance or

                                       19
<PAGE>   22

incurrence, the aggregate amount of all Secured Indebtedness and Attributable
Debt would not exceed 15% of Consolidated Net Tangible Assets.

            In the event that any Property of the Company or any Consolidated
Subsidiary is subjected to a Lien not otherwise permitted by this Section 601,
the Company shall make or cause to be made a provision whereby the Notes shall
be secured (together with other indebtedness for money borrowed then entitled
thereto and equal in rank to the Notes), to the full extent permitted under
applicable law, equally and ratably with all other obligations secured thereby,
and in any case the Notes shall (but only in such event) have the benefit, to
the full extent that the Holders of the Notes may be entitled thereto under
applicable law, of an equitable Lien on such Property equally and ratably
securing the Notes and such other obligations.

SECTION 602.  Limitation on Sale and Leaseback.

            The Company shall not enter, and shall not permit any Consolidated
Subsidiary to, enter into any arrangement, directly or indirectly, whereby the
Company or such Consolidated Subsidiary shall, in one transaction or a series of
related transactions, (x) sell, transfer or otherwise dispose of any Property
owned by the Company or any Consolidated Subsidiary and (y) more than 120 days
after the later of the date of initial acquisition of such Property or
completion or occupancy thereof, as the case may be, by the Company or such
Consolidated Subsidiary, rent or lease, as lessee, such Property or
substantially identical Property or any material part thereof (a "Sale and
Leaseback Transaction"), provided that the foregoing restriction shall not apply
to any Sale and Leaseback Transaction if (a) immediately after the consummation
of such Sale and Leaseback Transaction and after giving effect thereto, no
Default or Event of Default shall exist and (b) any one of the following
conditions is satisfied:

                 (i) the lease concerned constitutes a Capitalized Lease and at
      the time of entering into such Sale and Leaseback Transaction and after
      giving effect thereto and to any Liens incurred pursuant to Section 601
      hereof, the aggregate amount of all Secured Indebtedness and Attributable
      Debt would not exceed 15% of Consolidated Net Tangible Assets; or

               (ii) the lease has a term which in the aggregate would not exceed
      36 months (including any extensions or renewals thereof at the option of
      the lessee); or

               (iii) the sale of such Property is for cash consideration which
      equals or exceeds the fair market value thereof (as determined in good
      faith by the Company) and the net proceeds from such sale are applied,
      within 180 days of the date of the sale thereof, to either (a) redemption
      or retirement of the Notes or (b) the payment (other than payments due at
      maturity or in satisfaction of, or applied to, any mandatory or scheduled
      payment or prepayment obligation) of indebtedness for money borrowed of
      the Company which ranks, in right of payment, on a parity with or senior
      to the Notes.

SECTION 603.  Restrictive Agreements.

            The Company shall not enter, and shall not permit any of its
Consolidated Subsidiaries to enter, into any indenture, agreement, instrument or
other arrangement which,

                                       20
<PAGE>   23

directly or indirectly, prohibits or restrains, or has the effect of prohibiting
or restraining, or imposes materially adverse conditions upon, the ability of
any Consolidated Subsidiary to make loans or advances to the Company or to
declare and pay dividends or make distribution on shares of such Consolidated
Subsidiary's Capital Stock (whether now or hereafter outstanding); provided,
however, that any agreement to subordinate indebtedness for money borrowed,
owing from any Consolidated Subsidiary to the Company or owing between
Consolidated Subsidiaries pursuant to any Priority Debt or to any guarantee of
such indebtedness for money borrowed, shall not be deemed to violate this
Section 603 so long as any such agreement to subordinate does not directly or
indirectly prohibit or restrain the ability of any such Consolidated Subsidiary
to make loans or advances to the Company or to declare and pay dividends or make
distributions on shares of such Consolidated Subsidiary's Capital Stock (whether
now or hereafter outstanding).

SECTION 604.  Defeasance of Certain Obligations.

            The Company may omit to comply with the covenants contained in
Sections 601, 602, 603 and 701 hereof, and violations of such covenants shall
not be deemed to be an Event of Default hereunder, under the Senior Indenture
and under the Notes, to the extent that all of the conditions set forth in
Section 403 of the Senior Indenture have been met.

                                  ARTICLE SEVEN

                             PURCHASE OF SECURITIES

SECTION 701.  Purchase of Securities at the Option of Holders Upon a Change in
Control.

            (a) If any Change in Control Triggering Event regarding the Company
occurs on or prior to maturity of the Notes, each Holder of Notes will have the
right, at the Holder's option, subject to the terms and conditions of the Senior
Indenture, to require the Company to purchase (the "Change in Control Purchase")
all or any part of the Holder's Notes (so long as the principal amount is $1,000
or an integral multiple of $1,000) on the date that is 60 Business Days after
the occurrence of the Change in Control Triggering Event (the "Purchase Date").
If a Holder exercises this option, the Company will purchase that Holder's Notes
for cash equal to 101% of the principal amount of the Notes plus any interest
accrued and unpaid on the Notes through the Purchase Date (the "Purchase Price")
in accordance with the procedures set forth in this Section 701.

            (b) Within 30 Business Days after a Change in Control Triggering
Event, the Company is obligated to mail to the Trustee and to all Holders of the
Notes at their addresses shown in the Security Register (and to beneficial
owners as required by applicable law) a notice (the "Change in Control Notice")
regarding the Change in Control Triggering Event. The Change in Control Notice
shall state, among other things:

      (1)   the date by which the Holder must give the Purchase Notice;

      (2)   the Purchase Price;

                                       21
<PAGE>   24

      (3)   the Purchase Date;

      (4)   the name and address of the Trustee and of any other office or
            agency maintained for the purpose of the surrender of the Notes
            for purchase;

      (5)   the procedures for withdrawing a Purchase Notice; and

      (6)   the procedures that a Holder must follow to exercise these rights.

The Company will have the Change in Control Notice published in a daily
newspaper of national circulation.

            (c) To exercise the right to have the Company purchase the Notes, a
Holder must deliver written notice (a "Purchase Notice") to the Trustee or to
any other office or agency maintained for that purpose of the Holder's exercise
of that right before the close of business on the Business Day immediately prior
to the Purchase Date. The Purchase Notice must state:

      (1)   the certificate number of the Note or Notes to be delivered by the
            Holder for purchase by the Company;

      (2)   the portion of the principal amount of the Notes to be purchased
            (which must be $1,000 or an integral multiple of $1,000); and

      (3)   that the Notes will be submitted to the Company accompanied by a
            duly completed form of "Option of Holder to Elect Purchase"
            contained on the reverse of such Notes, to the Company to be given
            to the Trustee as Security Registrar at a Place of Payment specified
            in the notice (or otherwise make effective delivery of the Note and
            form of "Option of Holder to Elect Purchase" pursuant to book-entry
            procedures and the related rules of the Depository) prior to the
            close of business on the Business Day preceding the Purchase Date
            for purchase on the Purchase Date pursuant to the applicable
            provisions of the Notes.

            A Holder may withdraw any Purchase Notice by written notice of
withdrawal delivered to the Trustee or to any other office or agency maintained
for such purpose no later than the Business Day immediately prior to the
Purchase Date. The notice of withdrawal must state the principal amount and the
certificate numbers of the Notes as to which the withdrawal notice relates and
the principal amount, if any, of the Holder's Notes which remains subject to the
original Purchase Notice.

            (d) On the Purchase Date, the Company shall (i) accept for payment
the Notes or portions thereof tendered pursuant to the Change in Control Notice,
(ii) deposit with the Trustee money sufficient to pay the aggregate Purchase
Price and (iii) deliver or cause to be delivered to the Trustee the Notes so
accepted together with an Officers' Certificate indicating the Notes or portions
thereof tendered to the Company. The Trustee shall promptly mail to each Holder
of Notes so accepted payment in an amount equal to the Purchase Price for such
Notes, and the Trustee shall promptly authenticate and mail to such Holder a new
Note equal in principal amount to any unpurchased portion of the Notes
surrendered, provided that each such new Note shall be issued in an original
principal amount in denominations of $1,000 and integral multiples thereof.

                                       22
<PAGE>   25

            (e) The Company shall comply, to the extent then applicable and
required by law, with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder in connection with the
purchase of Notes pursuant to the Change in Control Notice. To the extent that
the provisions of any securities laws or regulations conflict with the
provisions relating to the Change in Control Notice, the Company shall comply
with the applicable securities laws and regulations and shall not be deemed to
have breached its obligations described above by virtue thereof.

                                  ARTICLE EIGHT

                                  MODIFICATIONS

SECTION 801.  Modification or Amendment.

            Modifications and amendments to this Supplemental Indenture shall be
made in accordance with Article Nine and the other provisions of the Senior
Indenture. Notwithstanding anything in Article Nine of the Senior Indenture to
the contrary, modification or amendment to this Supplemental Indenture or the
Senior Indenture may not waive the Company's obligation to make a Change in
Control Purchase without the written consent of the Holders of a least
two-thirds in aggregate principal amount of the then Outstanding Notes.

                                       23
<PAGE>   26

            IN WITNESS WHEREOF, the parties hereto have caused this Second
Supplemental Indenture to be duly executed, all as of the day and year first
above written.

                              AMERCO

                              By: /s/ Gary Horton
                                 __________________________________
                                  Name: Gary Horton
                                  Title: Treasurer

                              THE BANK OF NEW YORK,
                              as Trustee

                                 /s/ JoAnn Manieri
                              By:__________________________________
                                  Name:JoAnn Manieri
                                  Title:Assistant Vice-President

                                       24

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