Document:

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                                                                     EXHIBIT 4.1

                              LEVI STRAUSS & CO.

                                    ISSUER

                                      AND

                                CITIBANK, N.A.

                                    TRUSTEE

                             _____________________

                                   INDENTURE

                         Dated as of November 6, 1996

                             _____________________

                               U.S. $350,000,000

                                  6.80% NOTES
                             DUE NOVEMBER 1, 2003

                                      and

                               U.S. $450,000,000

                                  7.00% NOTES
                             DUE NOVEMBER 1, 2006
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                               TABLE OF CONTENTS

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                                             ARTICLE I

                                  DEFINITIONS AND OTHER PROVISIONS
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Section 1.1   Definitions..........................................................................        1
Section 1.2   Compliance Certificates and Opinions; Form of Documents Delivered to Trustee.........        9
Section 1.3   Acts of Holders of Securities........................................................       10
Section 1.4   Notices, Etc.........................................................................       12
Section 1.5   Notice to Holders of Securities; Waiver..............................................       13
Section 1.6   Effect of Headings and Table of Contents.............................................       13
Section 1.7   Successors and Assigns...............................................................       13
Section 1.8   Separability Clause..................................................................       13
Section 1.9   Benefits of Indenture................................................................       13
Section 1.10  Governing Law........................................................................       14
Section 1.11  Legal Holidays.......................................................................       14
Section 1.12  Conflict with Trust Indenture Act....................................................       14

                                           ARTICLE II

                                         SECURITY FORMS

Section 2.1   Forms of Securities Generally........................................................       14
Section 2.2   Form of Face of 6.80% Notes..........................................................       16
Section 2.3   Form of Reverse of 6.80% Notes.......................................................       20
Section 2.4   Form of Trustee's Certificate of Authentication of 6.80% Notes.......................       22
Section 2.5   Form of Face of 7.00% Notes..........................................................       22
Section 2.6   Form of Reverse of 7.00% Notes.......................................................       26
Section 2.7   Form of Trustee's Certificate of Authentication of 7.00% Notes.......................       28

                                          ARTICLE III

                                        THE SECURITIES

Section 3.1   Title and Terms......................................................................       29
Section 3.2   Denominations........................................................................       30
Section 3.3   Execution, Authentication, Delivery and Dating.......................................       30
Section 3.4   Temporary Securities.................................................................       31
Section 3.5   Registration, Registration of Transfer and Exchange: Restrictions on Transfer........       31
Section 3.6   Mutilated, Destroyed, Lost or Stolen Securities......................................       37
Section 3.7   Payment of Principal and Interest, Interest Rights Preserved.........................       38
Section 3.8   Persons Deemed Owners................................................................       39
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Section 3.9   Cancellation.........................................................................     39
Section 3.10  Computation of Interest..............................................................     40
Section 3.11  CUSIP Numbers........................................................................     40

                                           ARTICLE IV

                                     SATISFACTION AND DISCHARGE

Section 4.1   Satisfaction and Discharge of Indenture..............................................     40
Section 4.2   Application of Trust Money...........................................................     41

                                            ARTICLE V

                                            REMEDIES

Section 5.1   Events of Default....................................................................     41
Section 5.2   Acceleration of Maturity, Rescission and Annulment...................................     43
Section 5.3   Collection of Indebtedness and Suits for Enforcement by Trustee......................     44
Section 5.4   Trustee May File Proofs of Claim.....................................................     44
Section 5.5   Trustee May Enforce Claims Without Possession of Securities..........................     45
Section 5.6   Application of Money Collected.......................................................     45
Section 5.7   Limitation on Suits..................................................................     46
Section 5.8   Unconditional Right of Holders to Receive Principal and Interest.....................     46
Section 5.9   Restoration of Rights and Remedies...................................................     47
Section 5.10  Rights and Remedies Cumulative.......................................................     47
Section 5.11  Delay or Omission Not Waiver.........................................................     47
Section 5.12  Control by Holders of Securities.....................................................     47
Section 5.13  Waiver of Past Defaults..............................................................     48
Section 5.14  Undertaking for Costs................................................................     48
Section 5.15  Waiver of Stay or Extension Laws.....................................................     48

                                         ARTICLE VI

                                        THE TRUSTEE

Section 6.1   Certain Duties and Responsibilities..................................................     49
Section 6.2   Notice of Defaults...................................................................     50
Section 6.3   Certain Rights of Trustee............................................................     50
Section 6.4   Not Responsible for Recitals or Issuance of Securities...............................     51
Section 6.5   May Hold Securities, Act as Trustee Under Other Indentures...........................     51
Section 6.6   Money Held in Trust..................................................................     51
Section 6.7   Compensation and Indemnification of Trustee and Its Prior Claims.....................     51
Section 6.8   Corporate Trustee Required; Eligibility..............................................     52
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Section 6.9   Resignation and Removal; Appointment of Successor....................................     53
Section 6.10  Acceptance of Appointment by Successor...............................................     54
Section 6.11  Appointment of Co-Trustee or Separate Trustee........................................     54
Section 6.12  Merger, Conversion, Consolidation or Succession to Business..........................     55
Section 6.13  Authenticating Agent.................................................................     56
Section 6.14  Disqualification; Conflicting Interests..............................................     57

                                            ARTICLE VII

                              HOLDER'S LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 7.1   Company to Furnish Trustee Names and Addresses of Holders............................     57
Section 7.2   Preservation of Information; Communications to Holders...............................     57
Section 7.3   Reports by the Company...............................................................     58

                                            ARTICLE VIII

                             CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 8.1   Company May Consolidate, Etc., Only on Certain Terms.................................     58
Section 8.2   Successor Substituted................................................................     59

                                            ARTICLE IX

                                     SUPPLEMENTAL INDENTURES

Section 9.1   Supplemental Indentures Without Consent of Holders of Securities.....................     59
Section 9.2   Supplemental Indentures With Consent of Holders of Securities........................     60
Section 9.3   Trustee Protected....................................................................     61
Section 9.4   Execution of Supplemental Indentures.................................................     61
Section 9.5   Effect of Supplemental Indentures....................................................     61
Section 9.6   Reference in Securities to Supplemental Indentures...................................     61
Section 9.7   Notice of Supplemental Indentures....................................................     62

                                            ARTICLE X

                                  MEETINGS OF HOLDERS OF SECURITIES

Section 10.1  Purposes for Which Meetings May Be Called............................................     62
Section 10.2  Call, Notice and Place of Meetings...................................................     62
Section 10.3  Persons Entitled to Vote at Meetings.................................................     63
Section 10.4  Quorum; Action.......................................................................     63
Section 10.5  Determination of Voting Rights; Conduct and Adjournment of Meetings..................     63
Section 10.6  Counting Votes and Recording Action of Meetings......................................     64
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                                       ARTICLE XI

                                       COVENANTS
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Section 11.1   Payment of Principal and Interest....................................................       65
Section 11.2   Maintenance of Offices or Agencies...................................................       65
Section 11.3   Money for Security Payments To Be Held in Trust......................................       65
Section 11.4   Corporate Existence..................................................................       67
Section 11.5   Maintenance of Properties............................................................       67
Section 11.6   Maintenance of Insurance.............................................................       67
Section 11.7   Compliance with Laws.................................................................       67
Section 11.8   Payment of Taxes and Claims..........................................................       67
Section 11.9   Delivery of Certain Information......................................................       68
Section 11.10  Limitation on Liens..................................................................       68
Section 11.11  Limitation on Sale and Leaseback Transactions........................................       69
Section 11.12  Statement by Officers as to Default..................................................       70
Section 11.13  Resale of Certain Securities.........................................................       70
Section 11.14  Waiver of Certain Covenants..........................................................       71
Section 11.15  Book-Entry System....................................................................       71

ANNEX A-1      FORM OF TRANSFER CERTIFICATE -- RESTRICTED GLOBAL SECURITY TO TEMPORARY REGULATION S
               GLOBAL SECURITY......................................................................    A-1-1

ANNEX A-2      FORM OF TRANSFER CERTIFICATE -- RESTRICTED GLOBAL SECURITY TO REGULATION S GLOBAL
               SECURITY.............................................................................    A-2-1

ANNEX B        FORM OF TRANSFER CERTIFICATE -- TEMPORARY REGULATION S GLOBAL SECURITY OR REGULATION S
               GLOBAL SECURITY RESTRICTED GLOBAL SECURITY...........................................      B-1

ANNEX C-1      FORM OF CERTIFICATION TO BE GIVEN BY HOLDERS OF BENEFICIAL INTEREST IN A TEMPORARY
               REGULATION S GLOBAL SECURITY TO EUROCLEAR OR CEDEL...................................    C-1-1

ANNEX C-2      FORM OF CERTIFICATION TO BE GIVEN BY THE EUROCLEAR OPERATOR OR CEDEL BANK, SOCIETE
               ANONYME..............................................................................    C-2-1
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ANNEX C-3      FORM OF CERTIFICATION TO BE GIVEN BY TRANSFEREE OF BENEFICIAL INTEREST IN A TEMPORARY
               REGULATION S GLOBAL SECURITY AFTER THE RESTRICTED PERIOD.............................    C-3-1

ANNEX D-1      FORM OF TRANSFER CERTIFICATE -- NON-GLOBAL RESTRICTED SECURITY TO RESTRICTED GLOBAL
               SECURITY.............................................................................    D-1-1

ANNEX D-2      FORM OF CERTIFICATE -- NON-GLOBAL RESTRICTED SECURITY TO REGULATION S GLOBAL SECURITY
               OR TEMPORARY REGULATION S GLOBAL SECURITY.............................................   D-2-1
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                                      -v-
<PAGE>

               INDENTURE, dated as of November 6, 1996, between LEVI STRAUSS &
CO., a Delaware corporation (herein called the "Company"), and CITIBANK, N.A., a
national banking association, as Trustee hereunder (herein called the
"Trustee").

                                   RECITALS

               The Company has duly authorized the creation of an issue of its
6.80% Notes due November 1, 2003 (herein called the "6.80% Notes") and an issue
of its 7.00% Notes due November 1, 2006 (herein called the "7.00% Notes" and,
together with the 6.80% Notes, the "Securities") of substantially the tenor and
amount hereinafter set forth, and to provide therefor the Company has duly
authorized the execution and delivery of this Indenture.

               All things necessary to make the Securities, when executed by the
Company and authenticated and delivered hereunder and duly issued by the
Company, the valid obligations of the Company, and to make this Indenture a
valid agreement of the Company in accordance with their and its terms, have been
done.

               NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                   ARTICLE I

                       DEFINITIONS AND OTHER PROVISIONS
                            OF GENERAL APPLICATION

Section 1.1    Definitions.
               -----------

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

               (1)   the terms defined in this Article have the meanings
          assigned to them in this Article and include the plural as well as the
          singular;

               (2)   Unless the context otherwise requires, any reference to an
          "Article" or a "Section," or to an "Annex," refers to an Article or
          Section of, or an Annex attached to, this Indenture, as the case may
          be;

               (3)   all accounting terms not otherwise defined herein have the
          meanings assigned to them in accordance with generally accepted
          accounting principles in the United States prevailing at the time of
          any relevant computation hereunder; and

               (4)   the words "herein", "hereof" and "hereunder" and other
          words of similar import refer to this Indenture as a whole and not
          to any particular Article, Section or other subdivision; provided,
                                                                   --------
          however that where such words are used in any form of Security, form
          -------
          of notice or form of certificate, such words shall refer only to the
<PAGE>

          particular form of Security, form of notice or form of certificate, as
          the case may be, in which such words are contained.

               "Act," when used with respect to any Holder of a Security, has
the meaning specified in Section 1.3.

               "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition,
"control," when used with respect to any specified Person, means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

               "Agent Members" has the meaning specified in Section 3.5.

               "Applicable Procedures" has the meaning specified in Section 3.5.

               "Attributable Indebtedness," in respect of any sale and leaseback
transaction, means, as of the time of determination, the total obligation
(discounted to present value at the rate per annum equal to the discount rate
which would be applicable to a capital lease obligation with like term in
accordance with generally accepted accounting principles) of the lessee for
rental payments (other than amounts required to be paid on account of property
taxes, maintenance, repairs, insurance, water rates and other items which do not
constitute payments for property rights) during the remaining portion of the
initial term of the lease included in such sale and leaseback transaction.

               "Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 6.13 to act on behalf of the Trustee to authenticate
Securities.

               "Authorized Newspaper" means a newspaper, in an official language
of the country of publication or in the English language, customarily published
on each Business Day, whether or not published on Saturdays, Sundays or
holidays, and of general circulation in the place in connection with which the
term is used or in the financial community of such place. Where successive
publications are required to be made in Authorized Newspapers, the successive
publications may be made in the same or in different newspapers in the same city
meeting the foregoing requirements and in each case on any Business Day.

               "Board of Directors," when used with reference to the Company,
means the board of directors of the Company, or any committee of the board of
directors of the Company, empowered to act for the Company, as the case may be,
with respect to this Indenture.

               "Board Resolution" means a resolution duly adopted by the Board
of Directors, a copy of which, certified by the Secretary or an Assistant
Secretary of the Company, as the case may be, to have been duly adopted by the
Board of Directors and to be in full force and effect on the date of such
certification, shall have been delivered to the Trustee.

               "Business Day" means, with respect to any particular place of
payment or any other place, as the case may be, each Monday, Tuesday, Wednesday,
Thursday and Friday, other

                                      -2-
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than any such day on which banking institutions in The City of New York, New
York or in such particular place are authorized or obligated by law or executive
order to close. If any day on which any delivery, request, surrender, payment or
other action is required or permitted hereunder to be taken by or on behalf of a
Holder is not a Business Day in any place where such action is permitted
hereunder to be taken, then such actions may be taken at such or any other
permitted place on the next succeeding Business Day at such place with the same
force and effect as if taken at the same time on such day that is not a business
day at such place.

               "CEDEL" means Cedel Bank Societe Anonyme.

               "Code" has the meaning specified in Section 2.1.

               "Commission" means the U.S. Securities and Exchange Commission,
as from time to time constituted, created under the Securities Exchange Act of
1934, or, if at any time after the execution of this instrument such Commission
is not existing and performing the duties now assigned to it under applicable
law, then the body performing such duties at such time.

               "Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor corporation shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor corporation.

               "Company Request" or "Company Order" means a written request or
order signed in the name of the Company by any one of its Chairman of the Board,
its Chief Executive Officer, its President, or any Vice President, and by any
one of its Chief Financial Officer, Treasurer, any Assistant Treasurer, its
Secretary or any Assistant Secretary, and delivered to the Trustee.

               "Consolidated Net Tangible Assets" means the aggregate amount
of assets (less applicable reserves and other properly deductible items) after
deducting therefrom (i) all current liabilities (excluding any indebtedness for
money borrowed having a maturity of less than 12 months from the date of the
most recent consolidated balance sheet of the Company but which by its terms is
renewable or extendable beyond 12 months from such date at the option of the
borrower) and (ii) all goodwill, trade names, patents, unamortized debt discount
and expense and any other like intangibles, all as set forth on the most recent
consolidated balance sheet of the Company and computed in accordance with
generally accepted accounting principles.

               "Corporate Trust Office" means the office of the Trustee at which
at any particular time its corporate trust business shall be principally
administered (which at the date of this Indenture is located at 120 Wall Street,
13th Floor, New York, New York 10043), Attention: Corporate Trust
Administration.

               "Defaulted Interest" has the meaning specified in Section 3.7.

               "Depository" means, with respect to the Securities issued in
whole or in part in the form of one or more Global Securities, the clearing
agency registered under the Exchange Act, specified for that purpose as
contemplated by Section 2.1 or any successor clearing agency registered under
the Exchange Act as contemplated by Section 2.1.

                                      -3-
<PAGE>

               "Depository Securities Certification" has the meaning specified
in Section 2.1.

               "Dollar" or "U.S.$" means a dollar or other equivalent unit in
such coin or currency of the United States as at the time shall be legal tender
for the payment of public and private debts.

               "DTC" means The Depository Trust Company.

               "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, including any successor or amendatory statutes.

               "Euroclear" means the Euroclear System.

               "Event of Default" has the meaning specified in Section 5.1.

               "Exchange Act" means the U.S. Securities Exchange Act of 1934
(including any successor act thereto), as it may be amended from time to time,
and (unless the context otherwise requires) includes the rules and regulations
of the Commission promulgated thereunder.

               "Expiration Date" has the meaning specified in Section 1.3(g).

               "Funded Indebtedness" means (i) all Indebtedness having a
maturity of more than 12 months from the date as of which the determination is
made or having a maturity of 12 months or less but by its terms being renewable
or extendible beyond 12 months from such date at the option of the borrower and
(ii) rental obligations payable more than 12 months from such date under leases
which are capitalized in accordance with generally accepted accounting
principles (such rental obligations to be included as Funded Indebtedness at the
amount so capitalized as of such date of determination).

               "GAAP" means generally accepted accounting principles set forth
from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board (or
agencies with similar functions of comparable stature and authority within the
accounting profession), or in such other statements by such other entity as may
be in general use by significant segments of the U.S. accounting profession,
which are applicable to the circumstances as of the date of determination.

               "Global Security" means any of the Restricted Global Security of
either series, the Temporary Regulation S Global Security of either series and
the Regulation S Global Security of either series.

               "Governmental Authority" means any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory
authority) thereof, any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, and any
corporation or other entity owned or controlled, through stock or capital
ownership or otherwise, by any of the foregoing.

                                      -4-
<PAGE>

               "Holder" means, with respect to any Security, a Person in whose
name such Security is registered in the Security Register.

               "Indebtedness" means obligations (other than nonrecourse
obligations) of, or guaranteed or assumed by, the Company for borrowed money,
including obligations evidenced by bonds, debentures, notes or other similar
instruments and reimbursement and cash collateralization of letters of credit,
bankers' acceptances, interest rate hedge and currency hedge agreements.

               "Indenture" means this instrument as originally executed or as it
may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
including, for all purposes of this instrument and any such supplemental
indenture, the Annexes attached to this instrument.

               "Interest Payment Date" means the Stated Maturity of an
installment of interest on the Securities.

               "Institutional Accredited Investor" means an institutional
accredited investor within the meaning of Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities Act.

               "Material Adverse Effect" means (i) a material adverse change in,
or a material adverse effect upon, the operations, business, properties,
condition (financial or otherwise) of the Company and its Subsidiaries taken as
a whole; (ii) a material impairment of the ability of the Company to perform
under any Loan Document and to avoid any Event of Default, or (iii) a material
adverse effect upon the legality, validity, binding effect or enforceability
against the Company of any Loan Document.

               "Maturity," when used with respect to any Security, means the
date on which the principal of such Security becomes due and payable as therein
or herein provided, whether at the Stated Maturity or by declaration of
acceleration or otherwise.

               "6.80% Notes" has the meaning ascribed to it in the first
paragraph under the caption "Recitals."

               "7.00% Notes" has the meaning ascribed to it in the first
paragraph under the caption "Recitals."

               "Lien" means, with respect to any property or assets, any
mortgage or deed of trust, pledge, hypothecation, assignment, security interest,
lien, encumbrance, or other security arrangement of any kind or nature
whatsoever on or with respect to such property or assets (including any
conditional sale or other title retention agreement having substantially the
same economic effect as any of the foregoing).

               "Loan Documents" means any of this Indenture or the Securities.

               "Officer," when used with reference to the Company, means the
Chairman of the Board, the Chief Executive Officer, the President, the Chief
Financial Officer, the Treasurer, the

                                      -5-
<PAGE>

Controller, an Assistant Treasurer, an Assistant Controller, the Secretary, an
Assistant Secretary or any Vice President of the Company.

          "Officers' Certificate," when used with reference to the Company,
means a written certificate signed by any one of the Chairman of the Board, the
Chief Executive Officer, the President, the Chief Financial Officer or any Vice
President of the Company and by any one of the Treasurer, the Controller, an
Assistant Treasurer, an Assistant Controller, the Secretary or an Assistant
Secretary of the Company, and delivered to the Trustee; provided, however, that,
                                                        --------
for purposes of Section 11.12, an "Officers" Certificate" means a written
certificate signed by the principal executive, financial or accounting officer
of the Company and any one of the other Officers referred to above and delivered
to the Trustee.

          "Opinion of Counsel" means a written opinion of counsel selected by
the Company, which counsel shall be reasonably acceptable to the Trustee.

          "Outstanding," when used with respect to Securities, means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture or, if the context requires, all Securities of a particular
series therefore authenticated and delivered under this Indenture, except:
                                                                   ------

          (i)   Securities theretofore canceled by the Trustee or delivered to
     the Trustee for cancellation;

          (ii)  Securities for the payment of which money in the necessary
     amount has been theretofore deposited with the Trustee or any Paying Agent
     (other than the Company) in trust or set aside and segregated in trust by
     the Company (if the Company shall act as its own Paying Agent) for the
     Holders of such Securities; and

          (iii) Securities which have been paid pursuant to Section 3.6 or in
     exchange for or in lieu of which other Securities have been authenticated
     and delivered pursuant to this Indenture, other than any such Securities in
     respect of which there shall have been presented to the Trustee proof
     satisfactory to it that such Securities are held by a bona fide purchaser
     in whose hands such Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
--------  -------
principal amount of Outstanding Securities of either series are present at a
meeting of Holders of Securities for quorum purposes or have given any request,
demand, authorization, direction, notice, consent or waiver hereunder,
Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or such other obligor shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee shall be
protected in conclusively relying upon any such determination as to the presence
of a quorum or upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded. Securities so owned which
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor.

                                      -6-
<PAGE>

          "Owner Securities Certification" has the meaning specified in Section
2.1.

          "Paying Agent" means any Person authorized by the Company to pay the
principal of or interest on any Securities on behalf of the Company.

          "Person" means any individual, corporation, company, partnership,
joint venture, association, joint-stock company, trust, estate, unincorporated
organization or other legal entity or government or any agency or political
subdivision thereof.

          "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.6 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

          "Principal Property" means any contiguous or proximate parcel of real
property owned by, or leased to, the Company or any of its Restricted
Subsidiaries, and any equipment located at or comprising a part of any such
property, having a gross book value (without deduction of any depreciation
reserves), as of the date of determination, in excess of 1.0% of Consolidated
Net Tangible Assets.

          "Qualified Institutional Buyer" has the meaning specified in Rule
144A.

          "Record Date" means any Regular Record Date or Special Record Date.

          "Regular Record Date" for interest payable in respect of any Security
on any Interest Payment Date means the April 15 or October 15 (whether or not a
Business Day) next preceding the relevant Interest Payment Date.

          "Regulation S" means Regulation S under the Securities Act (including
any successor regulation thereto), as it may be amended from time to time.

          "Regulation S Global Security" has the meaning specified in Section
2.1.

          "Requirement of Law" means, as to any Person, any law (statutory or
common), treaty, rule or regulation or determination of an arbitrator or of a
Governmental Authority, in each case applicable to or binding upon the Person or
any of its property or to which the Person or any of its property is subject.

          "Responsible Officer," when used with respect to the Trustee, shall
mean any officer of the Trustee within the Corporate Trust Office including any
Vice President, Managing Director, Assistant Vice President, Secretary,
Assistant Secretary or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge and familiarity with the
particular subject.

          "Restricted Global Security" has the meaning specified in Section 2.1.

                                      -7-
<PAGE>

          "Restricted Period" has the meaning specified in Section 2.1.

          "Restricted Securities" has the meaning specified in Section 2.1.

          "Restricted Subsidiary" means any Subsidiary of the Company which owns
or leases a Principal Property.

          "Rule 144" means Rule 144 under the Securities Act (including any
successor rule thereto), as the same may be amended from time to time.

          "Rule 144A" means Rule 144A under the Securities Act (including any
successor rule thereto), as the same may be amended from time to time.

          "Rule 144A Information" has the meaning specified in Section 11.9.

          "Securities" has the meaning ascribed to it in the first paragraph
under the caption "Recitals."

          "Securities Act" means the Securities Act of 1933 (including any
successor act thereto), as it may be amended from time to time, and (unless the
context otherwise requires) includes the rules and regulations of the Commission
promulgated thereunder.

          "Security Register" and "Security Registrar" have the respective
meanings specified in Section 3.5.

          "series" has the meaning specified in Section 3.1.

          "Special Record Date" for the payment of any Defaulted Interest means
a date fixed by the Trustee pursuant to Section 3.7.

          "Stated Maturity," when used with respect to any Security or any
installment of interest thereon, means the date specified in such Security as
the fixed date on which the principal of such Security or such installment of
interest is due and payable.

          "Subsidiary" means any corporation of which at least a majority of the
outstanding stock having by the terms thereof ordinary voting power for the
election of directors of such corporation (irrespective of whether or not at the
time stock of any other class or classes of such corporation shall have or might
have voting power by reason of the happening of any contingency) is at the time
directly or indirectly owned by the Company, or by one or more other
Subsidiaries, or by the Company and one or more other Subsidiaries.

          "Temporary Regulation S Global Security" has the meaning specified in
Section 2.1.

            "Transferee Securities Certification" has the meaning specified in
Section 3.5.

                                      -8-
<PAGE>

            "Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean such successor Trustee.

            "Trust Indenture Act" means the United States Trust Indenture Act of
1939 (including any successor act thereto), as it may be amended from time to
time, and (unless the context otherwise requires) includes the rules and
regulations of the Commission thereunder.

            "U.S. Depository" means DTC until a successor U.S. Depository shall
have become such pursuant to the applicable provisions of this Indenture, and
thereafter "U.S. Depository" shall mean such successor U.S. Depository.

            "Unrestricted Securities" has the meaning specified in Section 2.1.

            "Vice President," when used with respect to the Company, means any
Vice President, whether or not designated by a number or a word or words added
before or after the title "Vice President."

Section 1.2 Compliance Certificates and Opinions; Form of Documents Delivered
            -----------------------------------------------------------------
to Trustee.
----------

            (a)  Upon any application or request by the Company to the Trustee
to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee an Officers' Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this Indenture relating to such particular application or request, no
additional certificate or opinion need be furnished.

            Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

            (1)   a statement that each individual signing such certificate or
         opinion has read such covenant or condition and the definitions herein
         relating thereto;

            (2)   a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

            (3)   a statement that, in the opinion of such individual, he has
         made such examination or investigation as is necessary to enable him to
         express an informed opinion as to whether or not such covenant or
         condition has been complied with; and

            (4)   a statement as to whether, in the opinion of each such
         individual, such condition or covenant has been complied with.

            (b)   In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary that
all such matters be

                                      -9-
<PAGE>

certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

            Any certificate or opinion of an Officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such Officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which such certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an Officer or Officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

            Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

Section 1.3 Acts of Holders of Securities.
            -----------------------------

            (a)  Any request, demand, authorization, direction, notice, consent,
waiver or other action provided or permitted by this Indenture to be given or
taken by Holders of Securities of either series may be embodied in and evidenced
by (1) one or more instruments of substantially similar tenor signed by such
Holders in person or by agent or proxy duly appointed in writing, (2) the record
of Holders of Securities of such series voting in favor thereof, either in
person or by proxies duly appointed in writing, at any meeting of Holders of
Securities of such series duly called and held in accordance with the provisions
of Article X or (3) a combination of such instruments and any such record.
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments and record (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the Holders
of Securities signing such instrument or instruments and so voting at such
meeting. Proof of execution of any such instrument or of a writing appointing
any such agent or proxy, or of the holding by any Person of a Security, shall be
sufficient for any purpose of this Indenture and (subject to Section 6.1)
conclusive in favor of the Trustee and the Company if made in the manner
provided in this Section. The record of any meeting of Holders of Securities
shall be proved in the manner provided in Section 10.6.

            (b)  The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgements of deeds, certifies that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority.

                                     -10-
<PAGE>

            (c)  The principal amount, serial number and ownership of
Securities shall be proven by the Security Register.

            (d)  Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the Holder of any Security shall bind every future Holder
of the same Security and the Holder of every Security issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done, omitted or suffered to be done by the Trustee or the
Company in reliance thereon, whether or not notation of such action is made upon
such Security.

            (e)  The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of either series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities, provided that the Company may not
                                               --------
set a record date for, and the provisions of this paragraph shall not apply with
respect to, the giving or making of any notice, declaration, request or
direction referred to in the next paragraph. If any record date is set pursuant
to this paragraph, the Holders of Outstanding Securities of the applicable
series on such record date, and no other Holders, shall be entitled to take the
relevant action, whether or not such Holders remain Holders after such record
date; provided that no such action shall be effective hereunder unless taken on
      --------
or prior to the applicable Expiration Date by Holders of the requisite principal
amount of Outstanding Securities of the applicable series on such record date.
Nothing in this paragraph shall be construed to prevent the Company from setting
a new record date for any action for which a record date has previously been set
pursuant to this paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be canceled and of no effect),
and nothing in this paragraph shall be construed to render ineffective any
action taken by Holders of the requisite principal amount of Outstanding
Securities of the applicable series on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Company, at its own
expense, shall cause notice of such record date, the proposed action by Holders
and the applicable Expiration Date to be given to the Trustee in writing and to
each Holder of Securities of the applicable series in the manner set forth in
Section 1.5.

            (f)  The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of either series entitled to
join in the giving or making of (i) any Notice of Default, (ii) any declaration
of acceleration referred to in Section 5.2, (iii) any request to institute
proceedings referred to in Section 5.7(2) or (iv) any direction referred to in
Section 5.12. If any record date is set pursuant to this paragraph, the Holders
of Outstanding Securities of the applicable series on such record date, and no
other Holders, shall be entitled to join in such notice, declaration, request or
direction, whether or not such Holders remain Holders after such record date;
provided that no such action shall be effective hereunder unless taken on or
--------
prior to the applicable Expiration Date by Holders of the requisite principal
amount of Outstanding Securities of the applicable series on such record date.
Nothing in this paragraph shall be construed to prevent the Trustee from setting
a new record date for any action (whereupon the record date previously set shall
automatically and without any action by any Person be canceled and of no
effect), nor shall anything in this paragraph be construed to render ineffective
any action taken by Holders of the requisite principal amount of Outstanding
Securities of the applicable series on the date such action is taken. Promptly
after any record

                                     -11-
<PAGE>

date is set pursuant to this paragraph, the Trustee, at the Company's expense,
shall cause notice of such record date, the proposed action by Holders and the
applicable Expiration Date to be given to the Company in writing and to each
Holder of Securities of the applicable series in the manner set forth in Section
1.5.

            (g)  With respect to any record date set pursuant to this Section,
the party hereto that sets such record date may designate any day as the
"Expiration Date" and from time to time may change the Expiration Date to any
earlier or later day, provided that no such change shall be effective unless
                      --------
notice of the proposed new Expiration Date is given to the other party hereto in
writing, and to each Holder of Securities of the applicable series in the manner
set forth in Section 1.5, on or prior to the existing Expiration Date. If an
Expiration Date is not designated with respect to any record date set pursuant
to this Section, the party hereto that set such record date shall be deemed to
have initially designated the 180th day after such record date as the Expiration
Date with respect thereto, subject to its right to change the Expiration Date as
provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
shall be later than the 180th day after the applicable record date.

            Without limiting the foregoing, a Holder entitled hereunder to take
any action hereunder with regard to any particular Security may do so with
regard to all or any part of the principal amount of such Security or by one or
more duly appointed agents each of which may do so pursuant to such appointment
with regard to all or any part of such principal amount.

Section 1.4 Notices, Etc.
            ------------

            Any request, demand, authorization, direction, notice, consent,
election, waiver or other Act of Holders of Securities or other document
provided or permitted by this Indenture to be made upon, given or furnished to,
or filed with,

            (1)  the Trustee by any Holder of Securities or by the Company shall
     be sufficient for every purpose hereunder if made, given, furnished or
     filed in writing to or with the Trustee and received at its Corporate Trust
     Office, Attention: Corporate Trust Administration, or

            (2)  the Company by the Trustee or by any Holder of Securities shall
     be sufficient for every purpose hereunder (unless otherwise herein
     expressly provided) if in writing, mailed, first-class postage prepaid, or
     telexed or telecopied and confirmed by mail, first-class postage prepaid,
     or delivered by hand or overnight courier, addressed to the Company at
     Levi's Plaza, 1155 Battery Street, IH1/5, San Francisco, California 94111,
     telephone no.: (415) 544-6955; telecopy no.: (415) 544-1342, Attention:
     Treasurer, or at any other address previously furnished in writing to the
     Trustee by the Company.

            Except for a notice to the Trustee, which is deemed given only when
received, if a notice or communication is mailed in the manner provided above,
it is duly given, whether or not the addressee receives it.

                                     -12-
<PAGE>

            Any request, demand, authorization, direction, notice, consent,
election or waiver required or permitted under this Indenture shall be in the
English language, except that any published notice may be in an official
language of the country of publication.

Section 1.5 Notice to Holders of Securities; Waiver.
            ---------------------------------------

            Where this Indenture provides for notice to Holders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each Holder
affected by such event, at his registered address as recorded in the Security
Register. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Holder entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

            In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

Section 1.6 Effect of Headines and Table of Contents.
            ----------------------------------------

            The Article and Section headings herein and the Table of Contents
are for convenience only and shall not affect the construction hereof.

Section 1.7 Successors and Assigns.
            ----------------------

            All covenants and agreements in this Indenture by the Company shall
bind its respective successors and assigns, whether so expressed or not.

Section 1.8 Separability Clause.
            -------------------

            In case any provision in this Indenture or the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

Section 1.9 Benefits of Indenture.
            ---------------------

            Nothing in this Indenture or in the Securities, express or implied,
shall give to any Person, other than the parties hereto and their successors and
assigns hereunder and the Holders of Securities, any benefit or legal or
equitable right, remedy or claim under this Indenture.

                                     -13-
<PAGE>

Section 1.10   Governing Law.
               -------------

               THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, THE UNITED
STATES OF AMERICA.

Section 1.11   Legal Holidays.
               --------------

               In any case where any Interest Payment Date or Stated Maturity of
any Security shall not be a Business Day, then (notwithstanding any other
provision of this Indenture or of the Securities) payment of interest or
principal need not be made on or by such day, but may be made on or by the next
succeeding Business Day with the same force and effect as if made on the
Interest Payment Date or at the Stated Maturity, as the case may be; provided,
                                                                     --------
however, that in the case that payment is made on such succeeding Business Day,
-------
no interest shall accrue on the amount so payable for the period from and after
such Interest Payment Date or Stated Maturity, as the case may be.

Section 1.12   Conflict with Trust Indenture Act.
               ---------------------------------

               If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required under such Act to be a
part of and govern this Indenture (or would be required to be a part of and
govern this Indenture if this Indenture were required to be qualified under the
Trust Indenture Act), the latter provision shall control. If any provision of
this Indenture modifies or excludes any provision of the Trust Indenture Act
that may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.

                                  ARTICLE II

                                SECURITY FORMS

Section 2.1    Forms of Securities Generally.
               -----------------------------

               The Securities shall be in substantially the forms set forth in
this Article, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or Depository thereof, the Internal Revenue Code of 1986, as
amended (the "Code"), and regulations thereunder, or as may, consistently
herewith, be determined by the Officers executing such Securities, as evidenced
by their execution thereof. The Company shall approve the form of the Securities
and any notation, legend or endorsement on the Securities.

               The definitive Securities shall be printed, lithographed or
engraved or produced by any combination of these methods on steel engraved
borders or may be produced in any other manner permitted by the rules of any
securities exchange on which the Securities may be listed, all as determined by
the Officers executing such Securities as evidenced by their execution thereof.

                                     -14-
<PAGE>

          In certain cases described elsewhere herein, the legends set forth in
the first four paragraphs of Section 2.2 may be omitted from Securities issued
hereunder.

          Securities offered and sold in their initial distribution in reliance
on Regulation S shall be initially issued in the form of temporary Global
Securities, one or more for each series, in fully registered form without
interest coupons, substantially in the form of Security set forth in Sections
2.2 and 2.3 or Sections 2.5 and 2.6, as the case may be, with such applicable
legends as are provided for in Section 2.2 or Section 2.5, as the case may be.
Such Global Securities shall be registered in the name of the U.S. Depository or
its nominee and deposited with the Trustee, at its New York office, as custodian
for the U.S. Depository, duly executed by the Company and authenticated by the
Trustee as hereinafter provided, for credit to the respective accounts at the
U.S. Depository of the depositories for Morgan Guaranty Trust Company of New
York, Brussels office, as operator of Euroclear, or CEDEL. Until such time as
the Restricted Period (as defined below) shall have terminated, such temporary
Global Securities shall be referred to herein as "Temporary Regulation S Global
Securities." Until such time as the Restricted Period shall have terminated,
investors may hold beneficial interests in such Global Securities only through
Euroclear and CEDEL, unless delivery of such beneficial interest shall be made
through a Restricted Global Security in accordance with the certification
requirements discussed below in Section 3.5(b)(5). After such time as the
Restricted Period shall have terminated, such certification requirements shall
no longer be required for such transfers. After such time as the Restricted
Period shall have terminated and the certifications referred to below in the
next succeeding paragraph shall have been provided, such temporary Global
Securities shall be exchanged for interests in like Global Securities, referred
to herein collectively as the "Regulation S Global Securities," substantially in
the form of Security set forth in Section 2.2 and 2.3 or Sections 2.5 and 2.6,
as the case may be, with such applicable legends as are provided for in Section
2.2 or Section 2.5, as the case may be. As used herein, the term "Restricted
Period" means the period up to (but not including) the 40th day following the
later of (i) the day that Goldman, Sachs & Co., as representative of the several
initial purchasers of the Securities, advises the Company and the Trustee of the
day on which the Securities are first offered to persons other than distributors
(as defined in Regulation S) in reliance on Regulation S and (ii) November 6,
1996. The Temporary Regulation S Global Securities, Regulation S Global
Securities following the Restricted Period and all other Securities that are not
Restricted Securities shall collectively be referred to herein as the
"Unrestricted Securities."

          Interests in a Temporary Regulation S Global Security may be exchanged
for interests in a Regulation S Global Security of the same series only on or
after the termination of the Restricted Period after delivery by a beneficial
owner of an interest therein to Euroclear or CEDEL of a written certification
(an "Owner Securities Certification") substantially in the form of Annex C-1
hereto, and upon delivery by Euroclear or CEDEL to the Trustee of a written
certification (a "Depository Securities Certification") substantially in the
form attached hereto as Annex C-2. Upon receipt of such certification, the
Trustee will exchange the portion of the Temporary Regulation S Global Security
covered by such certification for interests in a Regulation S Global Security of
the same series.

          Securities offered and sold in their initial distribution in reliance
on Rule 144A shall be issued in the form of Global Securities, one or more for
each series (collectively, as to each series, the "Restricted Global Security"),
in fully registered form without interest coupons,

                                     -15-
<PAGE>

substantially in the form of Security set forth in Sections 2.2 and 2.3 or
Sections 2.5 and 2.6, as the case may be, with such applicable legends as are
provided for in Section 2.2 or Section 2.5, as the case may be, except as
otherwise permitted herein. Such Global Securities shall be registered in the
name of the U.S. Depository or its nominee and deposited with the Trustee, at
its New York office, as custodian for the U.S. Depository, duly executed by the
Company and authenticated by the Trustee as hereinafter provided. The aggregate
principal amount of a Restricted Global Security may be increased or decreased
from time to time by adjustments made on the records of the Trustee, as
custodian for the U.S. Depository, in connection with a corresponding decrease
or increase in the aggregate principal amount of the Temporary Regulation S
Global Security or Regulation S Global Security each of the same series, as the
case may be, as hereinafter provided. The Restricted Global Securities and all
other Securities evidencing the debt, or any portion of the debt, initially
evidenced by such Global Securities, other than Securities transferred or
exchanged upon certification as provided in Section 3.5(b)(3), (4) or (7), shall
collectively be referred to herein as the "Restricted Securities."

               The Securities will be issued only in registered form. The
Securities will be issued in minimum denominations of $1,000, as provided in
Section 3.2, except that Securities offered other than in reliance on Regulation
S or to Qualified Institutional Buyers will be issued only in definitive
certificated form and will be issued initially in minimum denominations of
$100,000 and integral multiples of $1,000 in excess thereof. Such Securities
(i.e., Securities sold to Institutional Accredited Investors) will also be
considered to be Restricted Securities hereunder.

Section 2.2    Form of Face of 6.80% Notes.
               ---------------------------

               [INCLUDE IF SECURITY IS A TEMPORARY REGULATION S GLOBAL
SECURITY - THIS SECURITY IS A TEMPORARY REGULATION S GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. EXCEPT IN THE CIRCUMSTANCES
DESCRIBED IN SECTION 3.5(b) OF THE INDENTURE, NO TRANSFER OR EXCHANGE OF AN
INTEREST IN THIS TEMPORARY GLOBAL SECURITY MAY BE MADE FOR AN INTEREST IN THE
RESTRICTED GLOBAL SECURITY. NO EXCHANGE OF AN INTEREST IN THIS TEMPORARY GLOBAL
SECURITY MAY BE MADE FOR AN INTEREST IN THE REGULATION S GLOBAL SECURITY EXCEPT
ON OR AFTER THE TERMINATION OF THE RESTRICTED PERIOD AND UPON DELIVERY OF THE
OWNER SECURITIES CERTIFICATION AND THE DEPOSITORY SECURITIES CERTIFICATION
RELATING TO SUCH INTEREST IN ACCORDANCE WITH THE TERMS OF THE INDENTURE.]

               [INCLUDE IF SECURITY IS A RESTRICTED SECURITY - THIS SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) BY THE INITIAL INVESTOR (I) TO A
PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (II) IN AN OFFSHORE TRANSACTION COMPLYING
WITH RULE 903 OR RULE 904 OF

                                     -16-
<PAGE>

REGULATION S UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE) AND (B) BY SUBSEQUENT INVESTORS, AS SET FORTH IN (A) ABOVE AND, IN
ADDITION, TO AN INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES.]

          [INCLUDE IF SECURITY IS A GLOBAL SECURITY - THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS SECURITY MAY
NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER
OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITORY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]

          [INCLUDE IF SECURITY IS A GLOBAL SECURITY AND THE DEPOSITORY TRUST
COMPANY IS THE U.S. DEPOSITORY - UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY ("DTC"), A NEW YORK
CORPORATION, TO THE COMPANY 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 CEDE &
CO. (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE THEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

                                     -17-
<PAGE>

                              LEVI STRAUSS & CO.

                                  6.80% NOTES
                             DUE NOVEMBER 1, 2003

No.                                                            U.S.$
CUSIP No.:

            LEVI STRAUSS & CO., a Delaware corporation (herein called the
"Company," which term includes any successor Person under the Indenture referred
to on the reverse hereof), for value received, hereby promises to pay to
_______, or registered assigns, the principal sum of _______ U.S. Dollars, [or
such other amount (not to exceed three hundred fifty million dollars
($350,000,000) when taken together with all of the Company's 6.80% Notes due
November 1, 2003 issued and outstanding in definitive certificated form or in
the form of another Global Security) as may from time to time represent the
principal amount of the Company's 6.80% Notes due November 1, 2003 in respect of
which beneficial interests are held through the U.S. Depository in the form of a
[Restricted] [Temporary Regulation S Global Security or a Regulation S] Global
Security,] -[omit from Non-Global Securities] on November 1, 2003, and to pay
interest thereon from November 1, 1996 or from the most recent Interest Payment
Date (as defined below) to which interest has been paid or duly provided for,
semi-annually in arrears on May 1 and November 1 in each year, commencing on May
1, 1997, and at Maturity at the rate of 6.80% per annum, until the principal
hereof is paid or made available for payment, provided that any amount of such
                                              --------
principal or interest that is overdue shall bear interest at the rate of 6.80%
per annum (to the extent that payment of such interest shall be legally
enforceable), from the date such amount is due until it is paid or made
available for payment, and such interest on any overdue amount shall be payable
on demand. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the April 15 or October 15 (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 Security (or one or more Predecessor Securities) 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 thereof shall be
given to Holders of Securities 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 Securities may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in said Indenture.

            Payment of the principal of and interest on this Security will be
made in immediately available funds, and in the case of payment of principal
against presentation and surrender of this Security by the Holder thereof, and
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, at the office
or agency of the Company maintained for that purpose in the Borough of
Manhattan, The City of New York, which the Company has initially designated as
the office of the Trustee, 111 Wall Street, 5th Floor, New York, New York 10043,
or, at the option of the Holder and subject to any fiscal or other laws and
regulations, at any other office or agency maintained by

                                     -18-
<PAGE>

the Company for such purpose; provided, however, that upon written application
                              --------  -------
(including wire payment instructions) by the Holder to the Security Registrar
not later than the 10th day immediately preceding the relevant Regular Record
Date, such Holder may receive payment by wire transfer to a U.S. Dollar account
(such transfers to be made only to Holders of an aggregate principal amount in
excess of U.S.$1,000,000) maintained by the payee with a bank in The City of New
York; and, provided, further, that, subject to the preceding proviso, payment of
           --------  -------
interest may, at the option of the Company, be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register. Unless such designation is revoked, any such designation made
by the Holder with respect to this Security will remain in effect with respect
to future payments with respect to this Security payable to the Holder. The
Company will pay any administrative costs imposed by banks in connection with
making any such payments upon application of such Holder for reimbursement. If
this Security is a Global Security, then, notwithstanding the second sentence of
this paragraph, each such payment will be made in accordance with the procedures
of the U.S. Depository as then in effect.

          Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by the manual signature of one of
its authorized signatories, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this Security to be duly
executed under its corporate seal.

                                            LEVI STRAUSS & CO.

[Corporate Seal]                            By_______________________________
                                              Title:

                                            By_______________________________
                                              Title:

Attest:

____________________________
Title:

                                     -19-
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

             This is one of the Securities referred to in the within-mentioned
Indenture.

Dated:                                     CITIBANK, N.A., as Trustee

                                           By:___________________________
                                              Authorized Signatory

Section 2.3  Form of Reverse of 6.80% Notes.
             ------------------------------

             This Security is one of a duly authorized issue of securities of
the Company designated as its "6.80% Notes due November 1, 2003" (herein called
the "6.80% Notes"), limited in aggregate principal amount to U.S.$350,000,000,
issued and to be issued under an Indenture, dated as of November 6, 1996 (herein
called the "Indenture") between the Company and Citibank, N.A., as Trustee
(herein called the "Trustee," which term includes any successor trustee under
the Indenture), to which the Indenture and all indentures supplemental thereto
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 6.80% Notes and of the terms upon which the 6.80% Notes are, and
are to be, authenticated and delivered.

             No sinking fund is provided for in the 6.80% Notes. The 6.80% Notes
may not be redeemed at the option of the Company.

             In any case where the due date for the payment of the principal of,
or interest on, any 6.80% Note shall be, at any place of payment, a day on which
banking institutions at such place of payment are authorized or obligated by law
or executive order to close, then payment of principal or interest need not be
made on or by such date at such place but may be made on or by the next
succeeding day at such place which is not a day on which banking institutions
are authorized or obligated by law or executive order to close, with the same
force and effect as if made on the date for such payment or the date fixed for
redemption or repurchase, or at the Stated Maturity, and no interest shall
accrue for the period after such date.

             Subject to certain limitations in the Indenture, at any time when
the Company is not subject to Section 13 or 15(d) of the United States
Securities Exchange Act of 1934, as amended, upon the request of a Holder of a
Restricted Security, the Company will promptly furnish or cause to be furnished
Rule 144A Information (as defined below) to such Holder of Restricted
Securities, or to a prospective purchaser of any such security designated by any
such Holder or holder, as the case may be, to the extent required to permit
compliance by any such holder with Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"). "Rule 144A Information" shall be such
information as is specified pursuant to Rule 144A(d)(4) under the Securities Act
(or any successor provision thereto).

             If an Event of Default shall occur and be continuing, the principal
of all the 6.80% Notes may be declared due and payable to the extent, in the
manner and with the effect provided in the Indenture. Upon payment (i) of the
amount of principal so declared due and payable and

                                     -20-
<PAGE>

(ii) of interest on any overdue principal and overdue interest, all of the
Company's obligations in respect of the payment of the principal of and interest
on the 6.80% Notes shall terminate.

          The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the 6.80% Notes under the Indenture at
any time by the Company and the Trustee with either (a) the written consent of
the Holders of a majority in principal amount of the 6.80% Notes at the time
Outstanding, or (b) by the adoption of a resolution, at a meeting of Holders of
the Outstanding 6.80% Notes at which a quorum is present, by the Holders of 66-
2/3% in aggregate principal amount of the Outstanding 6.80% Notes represented at
such meeting. The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the 6.80% Notes at the time
Outstanding, on behalf of the Holders of all the 6.80% Notes, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this 6.80% Note shall be conclusive and binding upon
such Holder and upon all future Holders of this 6.80% Note and of any 6.80% Note
issued in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this 6.80% Note or such other 6.80% Note.

          As provided in and subject to the provisions of the Indenture, the
Holder of this 6.80% Note shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default, the Holders of not
less than 25% in aggregate principal amount of the Outstanding 6.80% Notes shall
have made written request to the Trustee to institute proceedings in respect of
such Event of Default and offered the Trustee indemnity satisfactory to it and
the Trustee shall not have received from the Holders of a majority in principal
amount of the 6.80% Notes Outstanding a direction inconsistent with such request
and shall have failed to institute any such proceedings for 60 days after
receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this 6.80% Note for the
enforcement of any payment of principal hereof or interest hereon on or after
the respective due dates expressed herein.

          No reference herein to the Indenture and no provision of this 6.80%
Note or of the Indenture shall alter or impair the obligations of the Company,
which are absolute and unconditional, to pay the principal of and interest on
this 6.80% Note at the times, places and rate, and in the coin or currency,
herein prescribed.

          The 6.80% Notes are issuable only in fully registered form, without
exception, and, except as provided in Section 2.1 of the Indenture, in
denominations of $1,000 and any integral multiples of $1,000 in excess thereof.
As provided in the Indenture and subject to certain limitations and satisfaction
of certain requirements therein set forth, 6.80% Notes are exchangeable for a
like aggregate principal amount of securities of the same or a different
authorized denomination, as requested by the Holder surrendering the same.

          As provided in the Indenture and subject to certain limitations and
satisfaction of certain requirements therein set forth, the transfer of this
6.80% Note is registrable on the Security Register upon surrender of this 6.80%
Note for registration of transfer at the office or

                                     -21-
<PAGE>

agency of the Company as may be designated by it for such purpose in the Borough
of Manhattan, The City of New York, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Security Note Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new 6.80% Notes, of authorized
denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.

               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
recover any tax or other governmental charge payable in connection therewith.

               Prior to due presentation of this 6.80% 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 such 6.80% Note is registered, as the owner
thereof for all purposes, whether or not such 6.80% Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

               THE INDENTURE AND THE 6.80% NOTES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, THE UNITED
STATES OF AMERICA.

               All terms used in this 6.80% Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

Section 2.4    Form of Trustee's Certificate of Authentication of 6.80% Notes.
               --------------------------------------------------------------

               This is one of the Securities referred to in the within-mentioned
Indenture.

Dated:                                   CITIBANK, N.A., as Trustee

                                         By:______________________________
                                            Authorized Signatory

Section 2.5    Form of Face of 7.00% Notes.
               ---------------------------

               [INCLUDE IF SECURITY IS A TEMPORARY REGULATION S GLOBAL
SECURITY - THIS SECURITY IS A TEMPORARY REGULATION S GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. EXCEPT IN THE CIRCUMSTANCES
DESCRIBED IN SECTION 3.5(b) OF THE INDENTURE, NO TRANSFER OR EXCHANGE OF AN
INTEREST IN THIS TEMPORARY GLOBAL SECURITY MAY BE MADE FOR AN INTEREST IN THE
RESTRICTED GLOBAL SECURITY. NO EXCHANGE OF AN INTEREST IN THIS TEMPORARY GLOBAL
SECURITY MAY BE MADE FOR AN INTEREST IN THE REGULATION S GLOBAL SECURITY EXCEPT
ON OR AFTER THE TERMINATION OF THE RESTRICTED PERIOD AND UPON DELIVERY OF THE
OWNER SECURITIES CERTIFICATION AND THE DEPOSITORY SECURITIES CERTIFICATION
RELATING TO SUCH INTEREST IN ACCORDANCE WITH THE TERMS OF THE INDENTURE.

                                     -22-
<PAGE>

          [INCLUDE IF SECURITY IS A RESTRICTED SECURITY - THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED EXCEPT (A) BY THE INITIAL INVESTOR (I) TO A PERSON WHO
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (II) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE
903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (III) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE) AND (B) BY SUBSEQUENT INVESTORS, AS SET FORTH IN (A)
ABOVE AND, IN ADDITION, TO AN INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED
STATES.

          [INCLUDE IF SECURITY IS A GLOBAL SECURITY - THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS SECURITY MAY
NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER
OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITORY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]

          [INCLUDE IF SECURITY IS A GLOBAL SECURITY AND THE DEPOSITORY TRUST
COMEPANY IS THE U.S. DEPOSITORY - UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY ("DTC"), A NEW YORK
CORPORATION, TO THE COMPANY 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 CEDE &
CO. (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE THEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

                                     -23-
<PAGE>

                              LEVI STRAUSS & CO.

                                  7.00% NOTES
                             DUE NOVEMBER 1, 2006

No.                                                          U.S.$
CUSIP No.:

            LEVI STRAUSS & CO., a Delaware corporation (herein called the
"Company," which term includes any successor Person under the Indenture referred
to on the reverse hereof), for value received, hereby promises to pay to
________, or registered assigns, the principal sum of ________ U.S. Dollars, [or
such other amount (not to exceed four hundred fifty million dollars
($450,000,000) when taken together with all of the Company's 7.00% Notes due
November 1, 2006 issued and outstanding in definitive certificated form or in
the form of another Global Security) as may from time to time represent the
principal amount of the Company's 7.00% Notes due November 1, 2006 in respect of
which beneficial interests are held through the U.S. Depository in the form of a
[Restricted] [Temporary Regulation S Global Security or a Regulation S] Global
Security,] -[omit from Non-Global Securities] on November 1, 2006, and to pay
interest thereon from November 1, 1996 or from the most recent Interest Payment
Date (as defined below) to which interest has been paid or duly provided for,
semi-annually in arrears on May 1 and November 1 in each year, commencing on May
1, 1997, and at Maturity at the rate of 7.00% per annum, until the principal
hereof is paid or made available for payment, provided that any amount of such
                                       --------
principal or interest that is overdue shall bear interest at the rate of 7.00%
per annum (to the extent that payment of such interest shall be legally
enforceable), from the date such amount is due until it is paid or made
available for payment, and such interest on any overdue amount shall be payable
on demand. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the April 15 or October 15 (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 Security (or one or more Predecessor Securities) 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 thereof shall be
given to Holders of Securities 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 Securities may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in said Indenture.

            Payment of the principal of and interest on this Security will be
made in immediately available funds, and in the case of payment of principal
against presentation and surrender of this Security by the Holder thereof, and
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, at the office
or agency of the Company maintained for that purpose in the Borough of
Manhattan, The City of New York, which the Company has initially designated as
the office of the Trustee, 111 Wall Street, 5th Floor, New York, New York 10043,
or, at the option of the Holder and subject to any fiscal or other laws and
regulations, at any other office or agency maintained by

                                     -24-
<PAGE>

the Company for such purpose; provided, however, that upon written application
                              --------  -------
(including wire payment instructions) by the Holder to the Security Registrar
not later than the 10th day immediately preceding the relevant Regular Record
Date, such Holder may receive payment by wire transfer to a U.S. Dollar account
(such transfers to be made only to Holders of an aggregate principal amount in
excess of U.S.$1,000,000) maintained by the payee with a bank in The City of New
York; and, provided, further, that, subject to the preceding proviso, payment of
           --------  -------
interest may, at the option of the Company, be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register. Unless such designation is revoked, any such designation made
by the Holder with respect to this Security will remain in effect with respect
to future payments with respect to this Security payable to the Holder. The
Company will pay any administrative costs imposed by banks in connection with
making any such payments upon application of such Holder for reimbursement. If
this Security is a Global Security, then, notwithstanding the second sentence of
this paragraph, each such payment will be made in accordance with the procedures
of the U.S. Depository as then in effect.

          Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by the manual signature of one of
its authorized signatories, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this Security to be duly
executed under its corporate seal.

                                             LEVI STRAUSS & CO.

[Corporate Seal]                             By___________________________
                                               Title:

                                             By___________________________
                                               Title:

Attest:

____________________________
Title:

                                     -25-
<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

               This is one of the Securities referred to in the within-mentioned
Indenture.

Dated:                                      CITIBANK, N.A., as Trustee

                                            By:____________________________
                                               Authorized Signatory

Section 2.6    Form of Reverse of 7.00% Notes.
               ------------------------------

               This Security is one of a duly authorized issue of securities of
the Company designated as its "7.00% Notes due November 1, 2006" (herein called
the "7.00% Notes"), limited in aggregate principal amount to U.S.$450,000,000,
issued and to be issued under an Indenture, dated as of November 6, 1996 (herein
called the "Indenture") between the Company and Citibank, N.A., as Trustee
(herein called the "Trustee," which term includes any successor trustee under
the Indenture), to which the Indenture and all indentures supplemental thereto
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 7.00% Notes and of the terms upon which the 7.00% Notes are, and
are to be, authenticated and delivered.

               No sinking fund is provided for in the 7.00% Notes. The 7.00%
Notes may not be redeemed at the option of the Company.

               In any case where the due date for the payment of the principal
of, or interest on, any 7.00% Note shall be, at any place of payment, a day on
which banking institutions at such place of payment are authorized or obligated
by law or executive order to close, then payment of principal or interest need
not be made on or by such date at such place but may be made on or by the next
succeeding day at such place which is not a day on which banking institutions
are authorized or obligated by law or executive order to close, with the same
force and effect as if made on the date for such payment or the date fixed for
redemption or repurchase, or at the Stated Maturity, and no interest shall
accrue for the period after such date.

               Subject to certain limitations in the Indenture, at any time when
the Company is not subject to Section 13 or 15(d) of the United States
Securities Exchange Act of 1934, as amended, upon the request of a Holder of a
Restricted Security, the Company will promptly furnish or cause to be furnished
Rule 144A Information (as defined below) to such Holder of Restricted
Securities, or to a prospective purchaser of any such security designated by any
such Holder or holder, as the case may be, to the extent required to permit
compliance by any such holder with Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"). "Rule 144A Information" shall be such
information as is specified pursuant to Rule 144A(d)(4) under the Securities Act
(or any successor provision thereto).

               If an Event of Default shall occur and be continuing, the
principal of all the 7.00% Notes may be declared due and payable to the extent,
in the manner and with the effect provided in the Indenture. Upon payment (i) of
the amount of principal so declared due and payable and

                                     -26-
<PAGE>

(ii) of interest on any overdue principal and overdue interest, all of the
Company's obligations in respect of the payment of the principal of and interest
on the 7.00% Notes shall terminate.

               The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the 7.00% Notes
under the Indenture at any time by the Company and the Trustee with either (a)
the written consent of the Holders of a majority in principal amount of the
7.00% Notes at the time Outstanding, or (b) by the adoption of a resolution, at
a meeting of Holders of the Outstanding 7.00% Notes at which a quorum is
present, by the Holders of 66-2/3% in aggregate principal amount of the
Outstanding 7.00% Notes represented at such meeting. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the 7.00% Notes at the time Outstanding, on behalf of the Holders of all the
7.00% Notes, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this 7.00% Note shall be conclusive
and binding upon such Holder and upon all future Holders of this 7.00% Note and
of any 7.00% Note issued in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this 7.00% Note or such other
7.00% Note.

               As provided in and subject to the provisions of the Indenture,
the Holder of this 7.00% Note shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver or
trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default,
the Holders of not less than 25% in aggregate principal amount of the
Outstanding 7.00% Notes shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default and offered the
Trustee indemnity satisfactory to it and the Trustee shall not have received
from the Holders of a majority in principal amount of the 7.00% Notes
Outstanding a direction inconsistent with such request and shall have failed to
institute any such proceedings for 60 days after receipt of such notice, request
and offer of indemnity. The foregoing shall not apply to any suit instituted by
the Holder of this 7.00% Note for the enforcement of any payment of principal
hereof or interest hereon on or after the respective due dates expressed herein.

               No reference herein to the Indenture and no provision of this
7.00% Note or of the Indenture shall alter or impair the obligations of the
Company, which are absolute and unconditional, to pay the principal of and
interest on this 7.00% Note at the times, places and rate, and in the coin or
currency, herein prescribed.

               The 7.00% Notes are issuable only in fully registered form,
without exception, and, except as provided in Section 2.1 of the Indenture, in
denominations of $1,000 and any integral multiples of $1,000 in excess thereof.
As provided in the Indenture and subject to certain limitations and satisfaction
of certain requirements therein set forth, 7.00% Notes are exchangeable for a
like aggregate principal amount of securities of the same or a different
authorized denomination, as requested by the Holder surrendering the same.

               As provided in the Indenture and subject to certain limitations
and satisfaction of certain requirements therein set forth, the transfer of this
7.00% Note is registrable on the Security Register upon surrender of this 7.00%
Note for registration of transfer at the office or

                                     -27-
<PAGE>

agency of the Company as may be designated by it for such purpose in the Borough
of Manhattan, The City of New York, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Security Note Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new 7.00% Notes, of authorized
denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.

               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
recover any tax or other governmental charge payable in connection therewith.

               Prior to due presentation of this 7.00% 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 such 7.00% Note is registered, as the owner
thereof for all purposes, whether or not such 7.00% Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

               THE INDENTURE AND THE 7.00% NOTES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, THE UNITED
STATES OF AMERICA.

               All terms used in this 7.00% Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

Section 2.7    Form of Trustee's Certificate of Authentication of 7.00% Notes.
               --------------------------------------------------------------

               This is one of the Securities referred to in the within-mentioned
Indenture.

Dated:                                CITIBANK, N.A., as Trustee

                                      By:_______________________________

                                         Authorized Signatory

                                     -28-
<PAGE>

                                  ARTICLE III

                               THE SECURITIES

Section 3.1   Title and Terms.
              ---------------

              The Securities shall be issued in two series and shall be known
and designated as the "6.80% Notes due November 1, 2003" and the "7.00% Notes
due November 1, 2006" of the Company. The aggregate principal amount of 6.80%
Notes which may be authenticated and delivered under this Indenture is limited
to U.S.$350,000,000 and the aggregate principal amount of 7.00% Notes which may
be authenticated and delivered under the Indenture is limited to
U.S.$450,000,000, except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Securities
pursuant to Sections 3.4, 3.5, 3.6 or 9.6. Each of the two series (each, a
"series") of the Securities issued hereunder shall be treated separately for
purposes of the acts of Holders permitted or required hereunder, the giving of
waivers or consents by Holders, Events of Default and accelerations of the
respective series, registrations of transfer and exchange of Securities,
replacement of Securities, and all other events and actions hereunder as to
which the interests of the Holders of the separate series of the Securities may
differ or it is otherwise appropriate to treat such series separately, whether
or not express mention is made of such separate treatment in a particular
context.

              The Stated Maturity of the 6.80% Notes shall be November 1, 2003
and they shall bear interest at the rate of 6.80% per annum from November 1,
1996 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, as the case may be, payable semiannually in arrears
on May 1 and November 1 of each year, commencing May 1, 1997, and at Maturity,
until the principal thereof is paid or made available for payment, provided
                                                                   --------
that any amount of such principal or interest that is overdue shall bear
interest at the rate of 6.80% per annum (to the extent that payment of such
interest shall be legally enforceable), from the date such amount is due until
it is paid or made available for payment, and such interest on any overdue
amount shall be payable on demand. The Stated Maturity of the 7.00% Notes shall
be November 1, 2006 and they shall bear interest at the rate of 7.00% per annum
from November 1 or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, as the case may be, payable semi-annually in
                      --------
arrears on May 1 and November 1 of each year, commencing May 1, 1997, and at
Maturity, until the principal thereof is paid or made available for payment,
provided that any amount of such principal or interest that is overdue shall
bear interest at the rate of 7.00% per annum (to the extent that payment of such
interest shall be legally enforceable), from the date such amount is due until
it is paid or made available for payment, and such interest on any overdue
amount shall be payable on demand.

              The principal of and interest on the Securities shall be payable
in immediately available funds and 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, at the Corporate Trust Office of the Trustee in the Borough of
Manhattan, The City of New York or, at the option of the Holder and subject to
any fiscal or other laws and regulations applicable thereto, at any other office
of the Trustee or any Paying Agent outside The City of New York; provided,
                                                                 --------
however, that upon application (including wire payment instructions) by the
-------
Holder to the Trustee not later than the

                                     -29-
<PAGE>

relevant Regular Record Date, such Holder may receive payment by wire transfer
to a U.S. Dollar account (such transfers to be made only to Holders of an
aggregate principal amount in excess of U.S.$1,000,000) maintained by the payee
with a bank in The City of New York, New York; and provided, further, that,
                                                   --------  -------
subject to the preceding proviso, payment of interest may, at the option of the
Company, be made by check mailed to the address of the Person entitled thereto
as such address shall appear in the Security Register. Unless such designation
is revoked, any such designation made by such Holder with respect to such
Security will remain in effect with respect to any future payments with respect
to such Security payable to such Holder. The Company will pay any administrative
costs imposed by banks in connection with making such payments, upon application
by the relevant Holder. Notwithstanding the second sentence of this paragraph,
each payment of principal and interest in respect of a Global Security will be
made in accordance with the procedures of the U.S. Depository as then in effect.

Section 3.2   Denominations.
              -------------

              The Securities shall be issuable only in registered form without
coupons and, except as provided in Section 2.1, only in denominations of $1,000
and any integral multiple of $1,000 in excess thereof.

Section 3.3   Execution, Authentication, Delivery and Dating.
              ----------------------------------------------

              The Securities shall be executed on behalf of the Company by any
two of the following persons: its Chairman of the Board, its Chief Executive
Officer, its President, or any of its Vice Presidents, under a facsimile of its
corporate seal reproduced thereon attested by its Secretary or one of its
Assistant Secretaries. Any such signature may be manual or facsimile.

              Securities bearing the manual or facsimile signature of
individuals who were at any time the proper Officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Securities or
did not hold such offices at the date of such Securities.

              At any time and from time to time after the execution and delivery
of this Indenture, the Company may deliver Securities executed by the Company to
the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with such Company Order shall authenticate and make available for delivery such
Securities as in this Indenture provided and not otherwise. In connection with
any Company Order for authentication, a compliance certificate and Opinion of
Counsel pursuant to Section 1.2 shall not be required.

              Each Security shall be dated the date of its authentication.

              No Security shall be entitled to any benefit under this Indenture
or be valid or obligatory for any purpose unless there appears on such Security
a certificate of authentication substantially in the form provided for herein
executed by the Trustee or the Authenticating Agent by manual signature of an
authorized signatory, and such certificate upon such Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder.

                                     -30-
<PAGE>

Section 3.4   Temporary Securities.
              --------------------

              Pending the preparation of definitive Securities, the Company may
execute, and upon Company Order the Trustee shall authenticate and make
available for delivery, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the Officers executing such Securities may determine, as
evidenced by their execution of such Securities.

              If temporary Securities are issued, the Company will cause
definitive Securities to be prepared without unreasonable delay. After the
preparation of definitive Securities, the temporary Securities shall be
exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to Section
11.2, without charge to the Holder. Upon surrender for cancellation of any one
or more temporary Securities the Company shall execute and the Trustee shall
authenticate and make available for delivery in exchange therefor a like
principal amount of definitive Securities of the same series of those
surrendered of authorized denominations. Until so exchanged, the temporary
Securities shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities.

Section 3.5   Registration, Registration of Transfer and Exchange; Restrictions
              -----------------------------------------------------------------
              on Transfer.
              -----------

              (a)   The Company shall cause to be kept at the Corporate Trust
Office of the Trustee a register (the register maintained in such office and in
any other office or agency designated pursuant to Section 11.2 being herein
sometimes collectively referred to as the "Security Register") in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide
for the registration of Securities and of transfers of Securities. The Trustee
is hereby appointed "Security Registrar" for the purpose of registering
Securities and transfers of Securities as herein provided. Upon surrender for
registration of transfer of any Security at an office or agency of the Company
designated pursuant to Section 11.2 for such purpose, and subject to the other
provisions of this Section 3.5, the Company shall execute, and the Trustee shall
authenticate and make available for delivery, in the name of the designated
transferee or transferees, one or more new Securities of the same series of
those surrendered of any authorized denominations and of a like aggregate
principal amount.

              At the option of the Holder, and subject to the other provisions
of this Section 3.5, Securities may be exchanged for other Securities of the
same series of those surrendered of any authorized denominations and of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
such office or agency. Whenever any Securities are so surrendered for exchange,
and subject to the other provisions of this Section 3.5, the Company shall
execute, and the Trustee shall authenticate and make available for delivery, the
Securities which the Holder making the exchange is entitled to receive.

              All Securities issued upon any registration of transfer or
exchange of Securities shall be the valid obligations of the Company, evidencing
the same debt, and subject to the other

                                     -31-
<PAGE>

provisions of this Section 3.5, entitled to the same benefits under this
Indenture, as the Securities surrendered upon such registration of transfer or
exchange.

              Every Security presented or surrendered for registration of
transfer or for exchange shall (if so required by the Company or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed, by the
Holder thereof or his attorney duly authorized in writing.

              No service charge shall be made for any registration of transfer
or exchange of securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 3.4.

              (b) Notwithstanding any other provisions of this Indenture or the
Securities (but subject to Section 2.1), transfers of a Global Security, in
whole or in part, transfers and exchanges of interests therein of the kinds
described in clauses (3), (4), (5), (6), (7) and (8) below and exchanges of
interests in Global Securities shall be made only in accordance with this
Section 3.5(b). Transfers and exchanges subject to this Section 3.5 shall also
be subject to the other provisions of this Indenture that are not inconsistent
with this Section 3.5.

              (1)   Limitation on Transfers of a Global Security. A Global
                    --------------------------------------------
         Security may not be transferred, in whole or in part, to any Person
         other than the U.S. Depository or a nominee thereof, and no such
         transfer to any such other Person may be registered; provided that this
                                                              --------
         clause (1) shall not prohibit any transfer of a Security that is issued
         in exchange for a Global Security but is not itself a Global Security.
         No transfer of a Security to any Person shall be effective under this
         Indenture or the Securities unless and until such Security has been
         registered in the name of such Person. Nothing in this Section
         3.5(b)(1) shall prohibit or render ineffective any transfer of a
         beneficial interest in a Global Security effected in accordance with
         the other provisions of this Section 3.5(b).

              (2)   Temporary Regulation S Global Security. After the Restricted
                    --------------------------------------
         Period, if the holder of a beneficial interest in a Temporary
         Regulation S Global Security wishes to transfer such interest to a
         Person who wishes to take delivery thereof in the form of a beneficial
         interest in such Temporary Regulation S Global Security, such transfer
         may be effected, subject to the rules and procedures of the Depository,
         Euroclear and CEDEL, in each case to the extent applicable and as in
         effect from time to time (the "Applicable Procedures"), only in
         accordance with this Section 3.5(b)(2). Upon delivery (a) by a
         beneficial owner of an interest in a Temporary Regulation S Global
         Security to Euroclear or CEDEL, as the case may be, of an Owner
         Securities Certification, (b) by the transferee of such beneficial
         interest in the Temporary Regulation S Global Security to Euroclear or
         CEDEL, as the case may be, of a written certification (a `Transferee
         Securities Certification") substantially in the form of Annex C-3
         hereto and (c) by Euroclear or CEDEL, as the case may be, to the
         Trustee, as Security Registrar, of a Depository Securities
         Certification, the Trustee may direct either Euroclear or CEDEL, as the
         case may be, to reflect on its records the transfer of a beneficial
         interest in the Temporary

                                     -32-
<PAGE>

         Regulation S Global Security from the beneficial owner providing the
         Owner Securities Certification to the Person providing the Transferee
         Securities Certification.

              (3)   Restricted Global Security to Temporary Regulation S Global
                    -----------------------------------------------------------
         Security. If the holder of a beneficial interest in the Restricted
         --------
         Global Security wishes at any time to transfer such interest to a
         Person who wishes to take delivery thereof in the form of a beneficial
         interest in the Temporary Regulation S Global Security of the same
         series, such transfer may be effected, subject to the Applicable
         Procedures, only in accordance with the provisions of this Section
         3.5(b)(3). Upon receipt by the Trustee, as Security Registrar, at its
         office in The City of New York of (A) written instructions given in
         accordance with the Applicable Procedures from a member of, or
         participant in, the U.S. Depository ("Agent Members") directing the
         Trustee to credit or cause to be credited to a specified Agent Member's
         account a beneficial interest in the Temporary Regulation S Global
         Security in a principal amount equal to that of the beneficial interest
         in the Restricted Global Security of the Same series to be so
         transferred, (B) a written order given in accordance with the
         Applicable Procedures containing information regarding the account of
         the Agent Member (and the Euroclear or CEDEL account, as the case may
         be) to be credited with, and the account of the Agent Member to be
         debited for, such beneficial interest and (C) a certificate in
         substantially the form set forth in Annex A-1 given by the holder of
         such beneficial interest, the Trustee, as Security Registrar, shall
         instruct the U.S. Depository to reduce the principal amount of the
         applicable Restricted Global Security, and to increase the principal
         amount of the Temporary Regulation S Global Security of the same
         series, by the principal amount of the beneficial interest in the
         Restricted Global Security to be so transferred, and to credit or cause
         to be credited to the account of the Person specified in such
         instructions (which shall be the Agent Member for Euroclear or CEDEL or
         both, as the case may be) a beneficial interest in the Temporary
         Regulation S Global Security of the same series having a principal
         amount equal to the amount by which the principal amount of the
         Restricted Global Security was reduced upon such transfer.

              (4)   Restricted Global Security to Regulation S Global Security.
                    ----------------------------------------------------------
         If the holder of a beneficial interest in a Restricted Global Security
         wishes at any time to transfer such interest to a Person who wishes to
         take delivery thereof in the form of a beneficial interest in the
         Regulation S Global Security of the same series, such transfer may be
         effected, subject to the Applicable Procedures, only in accordance with
         this Section 3.5(b)(4). Upon receipt by the Trustee, as Security
         Registrar, at its office in The City of New York of (A) written
         instructions given in accordance with the Applicable Procedures from an
         Agent Member directing the Trustee to credit or cause to be credited to
         a specified Agent Member's account a beneficial interest in a
         Regulation S Global Security in a principal amount equal to that of the
         beneficial interest in the Restricted Global Security of the same
         series to be so transferred, (B) a written order given in accordance
         with the Applicable Procedures containing information regarding the
         account of the Agent Member (and, if applicable, the Euroclear or CEDEL
         account, as the case may be) to be credited with, and the account of
         the Agent Member to be debited for, such beneficial interest and (C) a
         certificate in substantially the form set forth in Annex A-2 given by
         the holder of such beneficial interest, the Trustee, as Security
         Registrar, shall instruct the U.S. Depository to reduce the principal
         amount of the applicable Restricted Global

                                     -33-
<PAGE>

         Security, and to increase the principal amount of the Regulation S
         Global Security of the same series, by the principal amount of the
         beneficial interest in the Restricted Global Security to be so
         transferred, and to credit or cause to be credited to the account of
         the Person specified in such instructions (which during the Restricted
         Period shall be the Agent Member for Euroclear or CEDEL or both, as the
         case may be) a beneficial interest in the Regulation S Global Security
         of the same series having a principal amount equal to the amount by
         which the principal amount of the Restricted Global Security was
         reduced upon such transfer.

               (5)  Temporary Regulation S Global Security or Regulation S
                    ------------------------------------------------------
         Global Security to Restricted Global Security. If the holder of a
         ---------------------------------------------
         beneficial interest in a Temporary Regulation S Global Security or a
         Regulation S Global Security wishes at any time to transfer such
         interest to a Person who wishes to take delivery thereof in the form of
         a beneficial interest in the Restricted Global Security of the same
         series, such transfer may be effected, subject to the Applicable
         Procedures, only in accordance with this Section 3.5(b)(5). Upon
         receipt by the Trustee, as Security Registrar, at its office in The
         City of New York of (A) written instructions given in accordance with
         the Applicable Procedures from an Agent Member directing the Trustee to
         credit or cause to be credited to a specified Agent Member's account a
         beneficial interest in a Restricted Global Security in a principal
         amount equal to that of the beneficial interest in the Temporary
         Regulation S Global Security or the Regulation S Global Security of the
         same series to be so transferred, (B) a written order given in
         accordance with the Applicable Procedures containing information
         regarding the account of the Agent Member to be credited with, and the
         account of the Agent Member (and, if applicable, the Euroclear or CEDEL
         account, as the case may be) to be debited for, such beneficial
         interest and (C) a certificate in substantially the form set forth in
         Annex B given by the holder of such beneficial interest, the Trustee,
         as Security Registrar, shall instruct the U.S. Depository to reduce the
         principal amount of the applicable Temporary Regulation S Global
         Security or the Regulation S Global Security, as the case may be, and
         to increase the principal amount of the Restricted Global Security of
         the same series, by the principal amount of the beneficial interest in
         the Temporary Regulation S Global Security or the Regulation S Global
         Security to be so transferred, and to credit or cause to be credited to
         the account of the Person specified in such instructions a beneficial
         interest in the Restricted Global Security of the same series having a
         principal amount equal to the amount by which the principal amount of
         the Temporary Regulation S Global Security or the Regulation S Global
         Security, as the case may be, was reduced upon such transfer.

               (6)  Non-Global Restricted Security to Global Security. If the
                    -------------------------------------------------
         holder of a Restricted Security (other than a Global Security) wishes
         at any time to transfer all or a portion of such Security to a Person
         who wishes to take delivery thereof in the form of a beneficial
         interest in the Restricted Global Security, the Temporary Regulation S
         Global Security or the Regulation S Global Security, in each case of
         the same series, such transfer may be effected, subject to the
         Applicable Procedures, only in accordance with this Section 3.5(b)(6).
         Upon receipt by the Trustee, as Security Registrar, at its office in
         The City of New York of (A) such Security and written instructions
         given in accordance with the Applicable Procedures from an Agent Member
         directing the Trustee to credit or cause to be credited to a specified
         Agent Member's account a beneficial interest in the

                                     -34-
<PAGE>

         Restricted Global Security, the Temporary Regulation S Global Security
         or the Regulation S Global Security, as the case may be, in a specified
         principal amount equal to the principal amount of the Restricted
         Security (or portion thereof) of the same series to be so transferred,
         and (B) an appropriately completed certificate substantially in the
         form set forth in Annex D-1 hereto, if the specified account is to be
         credited with a beneficial interest in a Restricted Global Security, or
         Annex D-2 hereto, if the specified account is to be credited with a
         beneficial interest in the Temporary Regulation S Global Security or
         the Regulation S Global Security, given by the holder of such
         beneficial interest, the Trustee, as Security Registrar, shall cancel
         such Restricted Security (and issue a new Security in respect of any
         untransferred portion thereof) as provided in Section 3.5(a) and
         increase the principal amount of the Restricted Global Security,
         Temporary Regulation S Global Security or Regulation S Global Security,
         as the case may be, in each case of the same series, by the specified
         principal amount as provided in Section 3.5(d)(3).

               (7)  Exchanges. In the event that a Restricted Global Security or
                    ---------
         any portion thereof is exchanged for a Regulation S Global Security or
         Securities of the same series other than Global Securities, such other
         Securities may in turn be exchanged (on transfer or otherwise) for
         Securities of the same series that are not Global Securities or for
         beneficial interests in a Global Security of the same series (if any is
         then outstanding) only in accordance with such procedures, which shall
         be substantially consistent with the provisions of clauses (1) through
         (6) above and (8) below (including the certification requirements
         intended to insure that transfers and exchanges of beneficial interests
         in a Global Security comply with Rule 144A, Rule 144 or Regulation S,
         as the case may be) and any Applicable Procedures, as may be from time
         to time adopted by the Company and the Trustee.

               (8)  Interests in Temporary Regulation S Global Through Euroclear
                    ------------------------------------------------------------
         or CEDEL. Until the termination of the Restricted Period, interests in
         --------
         the Temporary Regulation S Global Securities may be held only through
         Agent Members acting for and on behalf of Euroclear and CEDEL, provided
                                                                        --------
         that this Clause (8) shall not prohibit any transfer in accordance with
         Section 3.5(b)(5) hereof.

               (9)  Certain Initial Transfers of Non-Global Securities. In the
                    --------------------------------------------------
         case of Securities initially issued other than in global form, an
         initial transfer or exchange of such Securities that does not involve
         any change in beneficial ownership may be made to an Institutional
         Accredited Investor or Investors as if such transfer or exchange were
         not an initial transfer or exchange.

               (c)  Each Restricted Security and Global Security issued
hereunder shall, upon issuance, bear the legends required by Section 2.2 or
Section 2.5, as the case may be, to be applied to such a Security and such
required legends shall not be removed from such Security except as provided in
the next sentence or paragraph (d) of this Section 3.5. The legend required for
a Restricted Security may be removed from a Security if there is delivered to
the Company such satisfactory evidence, which may include an opinion of
independent counsel licensed to practice law in the State of New York, as may be
reasonably required by the Company that neither such legend nor the restrictions
on transfer set forth therein are required to ensure that

                                     -35-
<PAGE>

transfers of such Security will not violate the registration requirements of the
Securities Act. Upon provision of such satisfactory evidence, the Trustee, at
the written direction of the Company, shall authenticate and deliver in exchange
for such Security another Security or Securities of the same series having an
equal aggregate principal amount that does not bear such legend. If such a
legend required for a Restricted Security has been removed from a Security as
provided above, no other Security issued in exchange for all or any part of such
Security shall bear such legend, unless the Company has reasonable cause to
believe that such other Security is a "restricted security" within the meaning
of Rule 144 and instructs the Trustee in writing to cause a legend to appear
thereon.

               (d)  The provisions of clauses (1), (2), (3) and (4) below shall
apply only to Global Securities:

               (1)  Each Global Security authenticated under this Indenture
         shall be registered in the name of the U.S. Depository or a nominee
         thereof and delivered to such U.S. Depository or a nominee thereof or
         custodian therefor, and each such Global Security shall constitute a
         single Security for all purposes of this Indenture.

               (2)  Notwithstanding any other provision in this Indenture or the
         Securities, no Global Security may be exchanged in whole or in part for
         Securities registered, and no transfer of a Global Security in whole or
         in part may be registered, in the name of any Person other than the
         U.S. Depository or a nominee thereof unless (A) the U.S. Depository (i)
         has notified the Company that it is unwilling or unable to continue as
         U.S. Depository for such Global Security or (ii) has ceased to be a
         clearing agency registered under the Exchange Act, (B) in the case of a
         Global Security held for an account of Euroclear or CEDEL, Euroclear or
         CEDEL, as the case may be, (i) is closed for business for a continuous
         period of 14 days (other than by reason of statutory or other holidays)
         or (ii) announces an intention permanently to cease business or does in
         fact do so, (C) there shall have occurred and be continuing an Event of
         Default with respect to such Global Security or (D) a request for
         certificates has been made upon 60 days' prior written notice given to
         the Trustee in accordance with the U.S. Depository's customary
         procedures and a copy of such notice has been received by the Company
         from the Trustee. Any Global Security exchanged pursuant to clause (A)
         or (B) above shall be so exchanged in whole and not in part and any
         Global Security exchanged pursuant to clause (C) or (D) above may be
         exchanged in whole or from time to time in part as directed by the U.S.
         Depository. Any Security issued in exchange for a Global Security or
         any portion thereof shall be a Global Security, provided that any such
                                                         --------
         Security so issued that is registered in the name of a Person other
         than the U.S. Depository or a nominee thereof shall not be a Global
         Security.

               (3)  Securities issued in exchange for a Global Security or any
         portion thereof pursuant to clause (2) above shall be of the same
         series as the Global Security to be exchanged, shall be issued in
         definitive, fully registered form, without interest coupons, shall have
         an aggregate principal amount equal to that of such Global Security or
         portion thereof to be so exchanged, shall be registered in such names
         and be in such authorized denominations as the U.S. Depository shall
         designate and shall bear any legends required hereunder. Any Global
         Security to be exchanged in whole shall be surrendered by the

                                     -36-
<PAGE>

         U.S. Depository to the Trustee, as Security Registrar. With regard to
         any Global Security to be exchanged in part, either such Global
         Security shall be so surrendered for exchange or, if the Trustee is
         acting as custodian for the U.S. Depository or its nominee with respect
         to such Global Security, the principal amount thereof shall be reduced,
         by an amount equal to the portion thereof to be so exchanged, by means
         of an appropriate adjustment made on the records of the Trustee. Upon
         any such surrender or adjustment, the Trustee shall authenticate and
         make available for delivery the Security issuable on such exchange to
         or upon the written order of the U.S. Depository or an authorized
         representative thereof.

               (4)  In the event of the occurrence of any of the events
         specified in clause (2) above, the Company will promptly make available
         to the Trustee a reasonable supply of certificated Securities in
         definitive, fully registered form, without interest coupons.

               (5)  No Agent Members nor any other Persons on whose behalf Agent
         Members may act (including Euroclear and CEDEL and account holders and
         participants therein) shall have any rights under this Indenture with
         respect to any Global Security, or under any Global Security, and the
         U.S. Depository or such nominee, as the case may be, may be treated by
         the Company, the Trustee and any agent of the Company or the Trustee as
         the absolute owner and holder of such Global Security for all purposes
         whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
         the Conmpany, the Trustee or any agent of the Company or the Trustee
         from giving effect to any written certification, proxy or other
         authorization furnished by the U.S. Depository or such nominee, as the
         case may be, or impair, as between the U.S. Depository, its Agent
         Members and any other person on whose behalf an Agent Member may act,
         the operation of customary practices of such Persons governing the
         exercise of the rights of a holder of any Security.

Section 3.6    Mutilated, Destroyed, Lost or Stolen Securities.
               -----------------------------------------------

               If any mutilated Security is surrendered to the Trustee, the
Company shall execute and the Trustee shall authenticate and make available for
delivery in exchange therefor a new Security of the same series of like tenor
and principal amount and bearing a number not contemporaneously outstanding.

               If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
and (ii) such security or indemnity as may be required by them to save each of
them and any agent of either of them harmless, then, in the absence of notice to
the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and make
available for delivery, in lieu of any such destroyed, lost or stolen Security,
a new Security of the same series as the Security destroyed, lost or stolen, of
like tenor and principal amount and bearing a number not contemporaneously
outstanding.

               In case any such mutilated, destroyed, lost or stolen Security
has become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security, pay such Security.

                                     -37-
<PAGE>

                  A Holder shall bear the cost to the Company of replacing a
mutilated, destroyed, stolen or lost Security. Upon the issuance of any new
Security under this Section, the Company also may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith.

                  Every new Security issued pursuant to this Section in lieu of
any destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities duly issued hereunder.

                  The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies. with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.

Section 3.7       Payment of Principal and Interest, Interest Rights Preserved.
                  ------------------------------------------------------------

                  Payment of the principal of the Securities will be made in
immediately available funds, against presentation and surrender of the
Securities by the Holders thereof, and 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, at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, The City of New York, which the
Company has initially designated as the office of the Trustee, 111 Wall Street,
5th Floor, New York, New York 10043, or, at the option of the Holder and subject
to any fiscal or other laws and regulations, at any other office or agency
maintained by the Company for such purpose.

                  Interest on any Security which is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the
Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest.

                  Any interest on any Security which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein
called "Defaulted Interest") shall forthwith cease to be payable to the Holder
on the relevant Regular Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

                  (1)   The Company may elect to make payment of any Defaulted
         Interest to the Persons in whose names the Securities (or their
         respective Predecessor Securities) are registered at the close of
         business on a Special Record Date for the payment of such Defaulted
         Interest, which shall be fixed in the following manner. The Company
         shall notify the Trustee in writing of the amount of Defaulted Interest
         proposed to be paid on each Security and the date of the proposed
         payment, and at the same time the Company shall deposit with the
         Trustee an amount of money equal to the aggregate amount proposed to be
         paid in respect of such Defaulted Interest or shall make arrangements
         satisfactory to the Trustee for such deposit prior to the date of the
         proposed payment,

                                     -38-
<PAGE>

         such money when deposited to be held in trust for the benefit of the
         Persons entitled to such Defaulted Interest as in this Clause provided.
         Thereupon the Trustee shall fix a Special Record Date for the payment
         of such Defaulted Interest which shall be not more than 15 days and not
         less than 10 days prior to the date of the proposed payment and not
         less than 10 days after the receipt by the Trustee of the notice of the
         proposed payment. The Trustee shall promptly notify the Company of such
         Special Record Date and, in the name and at the expense of the Company,
         shall cause notice of the proposed payment of such Defaulted Interest
         and the Special Record Date therefor to be mailed, first-class postage
         prepaid, to each Holder of Securities at such Holder's address as it
         appears in the Security Register, not less than 10 days prior to such
         Special Record Date. Notice of the proposed payment of such Defaulted
         Interest and the Special Record Date therefor having been so mailed,
         such Defaulted Interest shall be paid to the Persons in whose names the
         Securities (or their respective Predecessor Securities) are registered
         at the close of business on such Special Record Date and shall no
         longer be payable pursuant to the following Clause (2).

               (2)  The Company may make payment of any Defaulted Interest in
         any other lawful manner not inconsistent with the requirements of any
         securities exchange on which the Securities may be listed, and upon
         such notice as may be required by such exchange, if, after notice given
         by the Company to the Trustee of the proposed payment pursuant to this
         Clause, such manner of payment shall be deemed practicable by the
         Trustee.

               Subject to the foregoing provisions of this Section and Section
3.5, each Security delivered under this Indenture upon registration of transfer
of or in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

Section 3.8    Persons Deemed Owners.
               ---------------------

               Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
shall treat the Person in whose name such Security is registered as the owner of
such Security for the purpose of receiving payment of principal of and (subject
to Sections 3.5 and 3.7) interest on such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the Company,
the Trustee nor any agent of the Company or the Trustee shall be affected by
notice to the contrary.

Section 3.9    Cancellation.
               ------------

               All Securities surrendered for payment or registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee. All Securities so delivered shall be canceled
promptly by the Trustee. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and all Securities
so delivered shall be promptly canceled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section 3.9 except as expressly permitted by this Indenture. All
canceled Securities and any certificates in connection

                                     -39-
<PAGE>

therewith shall be held by the Trustee in accordance with its customary
practices until destroyed by the Trustee; provided, however, that the Trustee
                                          --------  -------
shall not be required to destroy such Securities. The Company may not issue new
Securities to replace Securities it has paid in full or delivered to the Trustee
for cancellation.

Section 3.10   Computation of Interest.
               -----------------------

               Interest on the Securities shall be computed on the basis of a
360-day year of twelve 30-day months.

Section 3.11   CUSIP Numbers.
               -------------

               The Company in issuing the Securities may use "CUSIP" and "CINS"
numbers (if then generally in use), and the Trustee shall use CUSIP numbers or
CINS numbers, as the case may be, in notices of exchange as a convenience to the
Holders; provided that any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Securities or as
contained in any notice of exchange and that reliance may be placed only on the
other identification numbers printed on the Securities.

                                  ARTICLE IV

                          SATISFACTION AND DISCHARGE

Section 4.1    Satisfaction and Discharge of Indenture.
               ---------------------------------------

               This Indenture shall upon Company Request cease to be of further
effect (except as to any surviving rights of replacement of Securities herein
expressly provided for and any right to receive the payment of principal of, or
interest on, such Securities), and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture, when

               (1)  either

                    (A)  all Securities theretofore authenticated and delivered
(other than (i) Securities which have been destroyed, lost or stolen and which
have been replaced or paid as provided in Section 3.6 and (ii) Securities for
whose payment money has theretofore been deposited in trust or segregated and
held in trust by the Company and thereafter repaid to the Company or discharged
from such trust, as provided in Section 11.3) have been delivered to the Trustee
for cancellation; or

                    (B)  all such Securities not theretofore delivered to the
Trustee for cancellation (other than Securities referred to in clauses (i) and
(ii) of clause (1)(A) above)

                         (i)  have become due and payable, or

                         (ii) will have become due and payable at their Stated
Maturity within one year,

                                     -40-
<PAGE>

and the Company, in the case of clause (i) or (ii) above, has deposited or
caused to be deposited with the Trustee as trust funds (immediately available to
the Holders in the case of clause (i)) in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal and
interest to the date of such deposit (in the case of Securities which have
become due and payable) or to the Stated Maturity, as the case may be;

               (2)  the Company has paid or caused to be paid all other sums
payable hereunder by the Company; and

               (3)  the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with.

               Notwithstanding the satisfaction and discharge of this Indenture,
the obligations of the Company to the Trustee under Section 6.7 and, if money
shall have been deposited with the Trustee pursuant to clause (1)(B) of this
Section 4.1, the obligations of the Trustee under Section 4.2 and the last
paragraph of Section 11.3 shall survive.

Section 4.2    Application of Trust Money.
               --------------------------

               Subject to the provisions of the last paragraph of Section 11.3,
all money deposited with the Trustee pursuant to Section 4.1 shall be held in
trust and applied by it, in accordance with the provisions of the Securities and
this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and interest for
whose payment such money has been deposited with the Trustee.

                                   ARTICLE V

                                   REMEDIES

Section 5.1    Events of Default.
               -----------------

               "Event of Default," whenever used herein with respect to
Securities of either series, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

               (1)  default in the payment of any interest upon any Security of
that series when it becomes due and payable and continuance of such default for
a period of 30 days; or

               (2)  default in the payment of the principal of any Security of
that series at its Maturity; or

               (3)  default in the performance, or breach, of any covenant or
warranty of the Company in this Indenture (other than a covenant or warranty a
default in whose performance or

                                     -41-
<PAGE>

whose breach is elsewhere in this Section specifically dealt with), and
continuance of such default or breach for a period of 60 days after there has
been given, by registered or certified mail, to the Company by the Trustee or to
the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of that series a written notice
specifying such default or breach and requiring it to be remedied and stating
that such notice is a "Notice of Default" hereunder; or

               (4)  Indebtedness of the Company for borrowed money in an
outstanding principal amount in excess of $25,000,000 in the aggregate, whether
such Indebtedness now exists or shall hereafter be created, is not paid at
maturity (either upon its stated maturity or upon acceleration thereof) and such
default in payment or acceleration has not been cured or rescinded within a
period of 30 days after there shall have been given, by registered or certified
mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities of
that series a written notice specifying such default and requiring the Company
to cause such indebtedness to be discharged or cause such acceleration to be
rescinded or annulled and stating that such notice is a "Notice of Default"
hereunder; provided, however, that the Trustee shall have no obligation, either
           --------  -------
express or implied, to give any notice, make any demand, make any collection,
initiate any judicial proceeding, file any proofs of claim or take any action as
a result of an Event of Default described in this clause (4), unless and until
the Trustee has received written notice of such Event of Default from the
Company, a Holder of a Security or a holder of Indebtedness of the Company;

               (5)  the entry by a court having jurisdiction in the premises of
(A) a decree or order for relief in respect of the Company in an involuntary
case or proceeding under the Bankruptcy Code or any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or (B) a decree or
order adjudging the Company a bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization, arrangement, adjustment or composition
of or in respect of the Company under any applicable Federal or State law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or
other similar official of the Company or of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such other decree or
order unstayed and in effect for a period of 60 consecutive days; or

               (6)  the commencement by the Company of a voluntary case or
proceeding under the Bankruptcy Code or any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to
the entry of a decree or order for relief in respect of the Company in an
involuntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it of a
petition or answer or consent seeking reorganization or relief under any
applicable Federal or State law, or the consent by it to the filing of such
petition or to the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other singular official of the
Company or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the admission by it in writing of
its inability to pay its debts generally as they become due.

                                     -42-
<PAGE>

Section 5.2    Acceleration of Maturity; Rescission and Annulment.
               --------------------------------------------------

               If an Event of Default with respect to Securities of either
series at any time Outstanding (other than an Event of Default specified in
Sections 5.1(5) or (6)) occurs and is continuing, then and in every such case
the Trustee shall, at the written request of the Holders of not less than 25% in
aggregate principal amount of the Outstanding Securities of that series, or the
Holders of not less than 25% in aggregate principal amount of the Outstanding
Securities of that series shall directly, by notice in writing to the Company,
declare the principal of all the Securities of such series to be due and payable
immediately, and upon any such declaration such principal and any accrued
interest shall become immediately due and payable. If an Event of Default
specified in Sections 5.1(5) or (6) occurs and is continuing, the principal and
any accrued interest on all of the Securities then Outstanding shall ipso facto
                                                                     ---- ------
become due and payable immediately without any declaration or other Act on the
part of the Trustee or any Holder.

               At any time after such declaration of acceleration with respect
to Securities of either series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article V provided, the Holders of a majority in principal amount of the
Outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if

               (1)  the Company has paid or deposited with the Trustee a sum
sufficient to pay

                    (A)  all overdue interest thereon on all Securities of that
series,

                    (B)  the principal of any Securities of that series which
have become due otherwise than by such declaration of acceleration and any
interest thereon at the rate borne by the Securities of that series,

                    (C)  to the extent that payment of such interest is lawful,
interest upon overdue interest at a rate of 6.80% per annum on the 6.80% Notes
and 7.00% on the 7.00% Notes, and

                    (D)  all sums paid or advanced by the Trustee hereunder and
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel;

               and

               (2)  all Events of Default with respect to Securities of that
series, other than the nonpayment of the principal of, and any interest on,
Securities of that series which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 5.13.

No such rescission or annulment shall affect any subsequent default or impair
any right consequent thereon.

                                     -43-
<PAGE>

Section 5.3    Collection of Indebtedness and Suits for Enforcement by Trustee.
               ---------------------------------------------------------------

               The Company covenants that if

               (1)  default is made in the payment of any interest on any
Security when such interest becomes due and payable and such default continues
for a period of 30 days,

               or

               (2)  default is made in the payment of the principal of any
Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal and interest and, to the extent the payment of such
interest shall be legally enforceable, interest on any overdue principal and on
any overdue interest, at a rate of 6.80% per annum on the 6.80% Notes and at a
rate of 7.00% per annum on the 7.00% Notes, and in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

               If the Company fails to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and
unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon the Securities
and collect the moneys adjudged or decreed to be payable in the manner provided
by law out of the property of the Company or any other obligor upon the
Securities, wherever situated.

               If an Event of Default occurs and is continuing, the Trustee may
in its discretion proceed to protect and enforce its rights and the rights of
the Holders of Securities by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.

Section 5.4    Trustee May File Proofs of Claim.
               --------------------------------

               In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or either of
their creditors, the Trustee (irrespective of whether the principal of, and any
interest on, the Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall
have made any demand on the Company for the payment of overdue principal or
interest) shall be entitled and empowered, by intervention in such proceeding or
otherwise,

                                     -44-
<PAGE>

               (1)  to file and prove a claim for the whole amount of principal
and interest owing and unpaid in respect of the Securities and to file such
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee and each predecessor
Trustee, its agents and counsel) and of the Holders of Securities allowed in
such judicial proceeding, and

               (2)  to collect and receive any moneys or other property payable
or deliverable on any such claim and to distribute the same,

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder of Securities by his acceptance thereof to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders of Securities, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, disbursements and advances
of the Trustee, and each predecessor Trustee, its agents and counsel and any
other amounts due the Trustee under Section 6.7.

               Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder of a
Security any plan of reorganization, arrangement, adjustment, or composition
affecting the Securities or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder of a Security in any such
proceeding; provided, however, that the Trustee may, on behalf of such Holders,
            --------  -------
vote for the election of a trustee in bankruptcy or similar official and be a
member of a creditors' or other similar committee.

Section 5.5    Trustee May Enforce Claims Without Possession of Securities.
               -----------------------------------------------------------

               All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, and each predecessor Trustee, its
agents and counsel, and other amounts due to the Trustee or such predecessor,
agent or counsel under Section 6.7, be for the ratable benefit of the Holders of
the Securities in respect of which judgment has been recovered.

Section 5.6    Application of Money Collected.
               ------------------------------

               Any money collected by the Trustee pursuant to this Article V
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal
or interest, upon presentation of the Securities and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

               FIRST:   To the payment of all amounts due the Trustee under
Section 6.7;

                                     -45-
<PAGE>

               SECOND:  To the payment of the amounts then due and unpaid for
               principal of and interest on the Securities in respect of which
               or for the benefit of which such money has been collected,
               ratably, without preference or priority of any kind, according to
               the amounts due and payable on such Securities for principal and
               interest, respectively; and

               THIRD:  Any remaining amounts shall be repaid to the Company.

Section 5.7    Limitation on Suits.
               -------------------

               No Holder of any Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

               (1)  such Holder has previously given written notice to the
Trustee of a continuing Event of Default with respect to the Securities of that
series;

               (2)  the Holders of not less than 25% in aggregate principal
amount of the Outstanding Securities of that series shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default in its own name as Trustee hereunder;

               (3)  such Holder or Holders have offered to the Trustee indemnity
satisfactory to it against the costs, expenses and liabilities to be incurred in
compliance with such request;

               (4)  the Trustee for 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute any such proceeding; and

               (5)  no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a majority in
aggregate principal amount of the Outstanding Securities of that series;

it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such
Holders.

               In the event the Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of the Holders, each
representing less than a majority in aggregate principal amount of the
Outstanding Securities of either series, the Trustee in its sole discretion may
determine what action, if any, shall be taken, notwithstanding any other
provisions of this Indenture, and shall have no liability to any person for such
action or inaction.

Section 5.8    Unconditional Right of Holders to Receive Principal and Interest.
               ----------------------------------------------------------------

               Notwithstanding any other provision in this Indenture, the Holder
of any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and (subject to Section 3.7) interest on
such Security on the respective Stated Maturities

                                     -46-
<PAGE>

expressed in such Security and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired without the consent of such
Holder.

Section 5.9    Restoration of Rights and Remedies.
               ----------------------------------

               If the Trustee or any Holder of a Security has instituted any
proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such
case, subject to any determination in such proceeding, the Company, the Trustee
and the Holders of Securities shall be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the
Trustee and such Holders shall continue as though no such proceeding had been
instituted.

Section 5.10   Rights and Remedies Cumulative.
               ------------------------------

               Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in the last paragraph
of Section 3.6, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders of Securities is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by
law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

Section 5.11   Delay or Omission Not Waiver.
               ----------------------------

               No delay or omission of the Trustee or of any Holder of any
Security to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or any acquiescence therein. Every right and remedy given by this
Article V or by law to the Trustee or to the Holders of Securities may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders of Securities, as the case my be.

Section 5.12   Control by Holders of Securities.
               --------------------------------

               The Holders of a majority in principal amount of the Outstanding
Securities of either series shall, subject to Section 6.3(e), have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee with respect to such series, provided that

               (1)  such direction shall not be in conflict with any rule of law
or with this Indenture, and

               (2)  the Trustee shall not be obligated to follow any direction
which may involve it in personal liability or which may be unduly prejudicial to
Holders not joining therein, and

                                     -47-
<PAGE>

               (3)  the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction or this Indenture.

Section 5.13   Waiver of Past Defaults.
               -----------------------

               The Holders, either (a) through the written consent of not less
than a majority in principal amount of the Outstanding Securities of either
series, or (b) by the adoption of a resolution, at a meeting of Holders of the
Outstanding Securities of either series at which a quorum is present, by the
Holders of at least 66-2/3% in aggregate principal amount of the Outstanding
Securities of such series represented at such meeting, may on behalf of the
Holders of all the Securities of such series waive any past default hereunder
and its consequences with respect to such series, except a default (1) in the
payment of the principal of or interest on any Security, or (2) in respect of a
covenant or provision hereof which under Article IX cannot be modified or
amended without the consent of the Holders of each Outstanding Security
affected.

               Upon any such waiver, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture with respect to such series; but no such waiver shall
extend to any subsequent or other default or impair any right consequent
thereon.

Section 5.14   Undertaking for Costs.
               ---------------------

               All parties to this Indenture agree, and each Holder of any
Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys' fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section 5.14 shall not apply to any
suit instituted by the Company, to any suit instituted by the Trustee, to any
suit instituted by any Holder, or group of Holders, holding in the aggregate
more than 10% in aggregate principal amount of the Outstanding Securities of
either series, or to any suit instituted by any Holder of any Security for the
enforcement of the payment of the principal of or interest on any Security on or
after the respective Stated Maturity or Maturities expressed in such Security.

Section 5.15   Waiver of Stay or Extension Laws.
               --------------------------------

               The Company covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

                                     -48-
<PAGE>

                                  ARTICLE VI

                                  THE TRUSTEE

Section 6.1    Certain Duties and Responsibilities.
               -----------------------------------

               (a)  If an Event of Default has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Indenture and
use the same degree of care and skill in their exercise as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

               (b)  Except during the continuance of an Event of Default,

               (1)  the Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture, and no implied covenants
or obligations shall be read into this Indenture against the Trustee; and

               (2)  in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case of
any such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to
examine the same to determine whether or not they conform to the requirements of
this Indenture.

               (c)  No provision of this Indenture shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act, or its own wilful misconduct, except that

               (1)  this paragraph (c) shall not be construed to limit the
effect of paragraph (b) of this Section;

               (2)  the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be proved that the
Trustee was negligent in ascertaining the pertinent facts;

               (3)  the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of a majority in principal amount of the Outstanding
Securities of either series relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee, with respect to such series under this
Indenture; and

               (4)  no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or indemnity satisfactory to it against such risk or
liability is not assured to it.

                                     -49-
<PAGE>

               (d)  Whether or not therein expressly so provided, every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Section.

Section 6.2    Notice of Defaults.
               ------------------

               Within 90 days of the occurrence of any default hereunder, the
Trustee shall give to all Holders of Securities, in the manner provided in
Section 1.5, notice of such default hereunder actually known to a Responsible
Officer of the Trustee, unless such default shall have been cured or waived;
provided, however, that in the case of any default of the character specified in
--------  -------
Section 5.1(3), no such notice to Holders of Securities shall be given until at
least 30 days after the occurrence of such default. For the purpose of this
Section, the term "default" means any event which is, or after notice or lapse
of time or both would become, an Event of Default.

Section 6.3    Certain Rights of Trustee.
               -------------------------

               Subject to the provisions of Section 6. 1:

               (a)  the Trustee may conclusively rely and shall be protected in
acting or refraining from acting upon any resolution, Officers' Certificate,
other certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document believed by it to be genuine and to have been signed
or presented by the proper party or parties;

               (b)  any request or direction of the Company mentioned herein
shall be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors of the Company shall be sufficiently
evidenced by a Board Resolution;

               (c)  whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part,
conclusively rely upon an Officers' Certificate or an Opinion of Counsel;

               (d)  the Trustee may consult with counsel (at the expense of the
Company) and the advice of such counsel or any Opinion of Counsel shall be full
and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

               (e)  the Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders of Securities pursuant to this Indenture, unless such
Holders shall have offered to the Trustee security or indemnity satisfactory to
it against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;

               (f)  the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice,

                                     -50-
<PAGE>

request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may
see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney;

               (g)  the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents, attorneys, custodians or nominees and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent, attorney,
custodian or nominee appointed with due care by it hereunder;

               (h)  the Trustee shall not be deemed to have notice of any Event
of Default under Section 5.1 unless a Responsible Officer of the Trustee shall
have actual knowledge thereof, and

               (i)  in the event that the Trustee is also acting as
authenticating agent, payment agent or securities registrar hereunder, the
rights and protections afforded to the Trustee pursuant to this Article VI shall
also be afforded to the Trustee in such capacities.

Section 6.4    Not Responsible for Recitals or Issuance of Securities.
               ------------------------------------------------------

               The recitals contained herein and in the Securities (except the
Trustee's certificates of authentication) shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. The Trustee shall not be accountable for the use
or application by the Company of Securities or the proceeds thereof.

Section 6.5    May Hold Securities, Act as Trustee Under Other Indentures.
               ----------------------------------------------------------

               The Trustee, any Authenticating Agent, any Paying Agent or any
other agent of the Company or the Trustee, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal
with the Company with the same rights it would have if it were not Trustee,
Authenticating Agent, Paying Agent or such other agent.

               The Trustee may become and act as trustee under other indentures
under which other securities, or certificates of interest or participation in
other Securities, of the Company are outstanding in the same manner as if it
were not Trustee hereunder.

Section 6.6    Money Held in Trust.
               -------------------

               Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed with the Company in writing.

Section 6.7    Compensation and Indemnification of Trustee and Its Prior Claims.
               ----------------------------------------------------------------

               The Company covenants and agrees to pay to the Trustee from time
to time, and the Trustee shall be entitled to, reasonable condensation (which
shall not be limited by any

                                     -51-
<PAGE>

provision of law in regard to the compensation of a trustee of an express trust)
and the Company covenants and agrees to pay or reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made
by or on behalf of it in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its
counsel and of all agents and other Persons not regularly in its employ), except
to the extent that any such expense, disbursement or advance is due to its
negligence or bad faith. The Company also covenants to indemnify the Trustee and
its directors, officers, employees and agents for, and to hold the Trustee and
its directors, officers, employees and agents harmless against, any loss,
liability or expense incurred by the Trustee or its directors, officers,
employees and agents, arising out of or in connection with the acceptance or
administration of this Indenture or the trusts hereunder or the performance of
the Trustee's duties hereunder, including the costs and expenses of defending
the Trustee or its directors, officers, employees and agents against or
investigating any claim or liability in the premises, except to the extent that
any such loss, liability or expense was due to the Trustee's negligence or bad
faith. The obligations of the Company under this Section 6.7 to compensate and
indemnify the Trustee and its directors, officers, employees and agents and to
pay or reimburse the Trustee and its directors, officers, employees and agents
for expenses, disbursements and advances shall constitute additional
indebtedness hereunder and shall survive the satisfaction and discharge of this
Indenture or the earlier resignation and removal of the Trustee. The Trustee
shall have a lien prior to the Securities on all money or property held or
collected by the Trustee including, without limitation, all money or property
held or collected by the Trustee in trust to pay the principal of, or interest
on, or any other amounts on any Securities, and such lien shall survive the
satisfaction and discharge of the Indenture and any other termination of the
Indenture including any termination under any bankruptcy law. When the Trustee
incurs expenses or renders services in connection with an Event of Default
specified in Sections 5.1(5) or (6), the Holders by their acceptance of the
Securities hereby agree that such expenses and the compensation for such
services are intended to constitute expenses of administration under Title 11 of
the United States Code or any other applicable Federal or state bankruptcy,
insolvency or similar law. "Trustee" for purposes of this Section 6.7 shall
include any predecessor Trustee, but the negligence or bad faith of any Trustee
shall not affect the indemnification of any other Trustee.

Section 6.8    Corporate Trustee Required; Eligibility.
               ---------------------------------------

               There shall at all times be a Trustee hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America, any State thereof, or the District of Columbia, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least U.S.$100,000,000, subject to supervision or examination by Federal
or State authority, in good standing and having an established place of business
in The City of New York. If such corporation publishes reports of condition at
least annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.

                                     -52-
<PAGE>

Section 6.9    Resignation and Removal; Appointment of Successor.
               -------------------------------------------------

               (a)  No resignation or removal of the Trustee and no appointment
of a successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 6.10.

               (b)  The Trustee may resign at any time by giving written notice
thereof to the Company. If the instrument of acceptance by a successor Trustee
required by this Section 6.9 shall not have been delivered to the Trustee within
30 days after the giving of such notice of resignation, the resigning Trustee
may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

               (c)  The Trustee may be removed at any time by an Act of the
Holders of a majority in principal amount of the Outstanding Securities,
delivered to the Trustee and the Company.

               (d)  If at any time:

                    1.   the Trustee shall cease to be eligible under Section
6.8 and shall fail to resign after written request therefor by the Company or by
any Holder of a Security who has been a bona fide Holder of a Security for at
least six months, or

                    2.   the Trustee shall become incapable of acting or shall
be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its
property shall be appointed or any public officer shall take charge or control
of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation,

then, in any such case (i) the Company by a Board Resolution may remove the
Trustee, or (ii) subject to Section 5.14, any Holder of a Security who has been
a bona fide Holder of a Security for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

               (e)  If the Trustee shall resign, be removed or become incapable
of acting, or if a vacancy shall occur in the office of Trustee for any cause,
the Company, by a Board Resolution, shall promptly appoint a successor Trustee
and shall comply with the applicable requirements of this Section 6.9. If,
within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities
delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of this Section 6.9, become the successor
Trustee and supersede the successor Trustee appointed by the Company. If no
successor Trustee shall have been so appointed by the Company or the Holders of
Securities and accepted appointment in the manner required by this Section 6.9,
any Holder of a Security who has been a bona fide Holder of a Security for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

                                     -53-
<PAGE>

               (f)  The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee to all
Holders of Securities in the manner provided in Section 1.5. Each notice shall
include the name of the successor Trustee and the address of its Corporate Trust
Office.

               Notwithstanding the replacement of the Trustee pursuant to this
Section 6.9, the Company's obligations under Section 6.7 shall continue for the
benefit of the retiring Trustee.

               The retiring Trustee shall not be liable for the acts or
omissions of any successor Trustee hereunder.

Section 6.10   Acceptance of Appointment by Successor.
               --------------------------------------

               Every successor Trustee appointed hereunder shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on the request of the
Company or the Successor Trustee, such retiring Trustee shall, upon payment of
its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall duly
assign, transfer and deliver to such successor Trustee all property and money
held by such retiring Trustee hereunder. Upon request of any such successor
Trustee, the Company shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts.

               No successor Trustee shall accept its appointment unless at the
time of such acceptance such successor Trustee shall be eligible under this
Article.

               Upon the acceptance of appointment by any successor Trustee, all
fees, charges and expenses of the retiring Trustee shall become immediately due
and payable upon the rendering of a statement thereof.

Section 6.11   Appointment of Co-Trustee or Separate Trustee.
               ---------------------------------------------

               (a)  Notwithstanding any other provisions of this Indenture, at
any time, for the purpose of meeting any legal requirement of any jurisdiction
in which any part of the trust may at the time be located, the Trustee shall
have the power and may execute and deliver all instruments to appoint one or
more Persons reasonably acceptable to the Company to act as a co-trustee or co-
trustees, or separate trustee or separate trustees, and to vest in such Person
or Persons, in such capacity and for the benefit of the Security Holders, such
title to the Securities, or any part hereof, and, subject to the other
provisions of this Section, such powers, duties, obligations, rights and trusts
as the Trustee may consider necessary or desirable. No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 6.9 and no notice to Security Holders of the
appointment of any co-trustee or separate trustee shall be required under
Section 6.9 hereof. All fees, charges and expenses of any co-trustee or separate
trustee appointed pursuant to this Section 6.11 shall be paid by the Company.

                                     -54-
<PAGE>

               (b)  Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                    (i)   all rights, powers, duties and obligations conferred
               or imposed upon the Trustee shall be conferred or imposed upon
               and exercised or performed by the Trustee and such separate
               trustee or co-trustee jointly (it being understood that such
               separate trustee or co-trustee is not authorized to act
               separately without the Trustee joining in such act), except to
               the extent that under any law of any jurisdiction in which any
               particular act or acts are to be performed, the Trustee shall be
               incompetent or unqualified to perform such act or acts, in which
               event such rights, powers, duties and obligations, (including the
               holding of title to the trust or any portion thereof in any such
               jurisdiction) shall be exercised and performed singly by such
               separate trust or co-trustee, but solely at the direction of the
               Trustee;

                    (ii)  the Trustee shall not be personally liable by reason
               of any act or omission of any separate trustee or co-trustee
               (subject to the provisions of Section 6.1 hereof);

                    (iii) the Trustee may at any time accept the resignation of
               or remove any separate trustee or co-trustee.

               (c)  Any notice, request or other writing given to the Trustee
shall be deemed to have been given to each of the separate trustees and co-
trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Trustee or separately, as may be provided therein, subject to all the provisions
of this Indenture, specifically including every provision of this Indenture
relating to the conduct of, affecting the liability of, or affording protection
to, the Trustee. Every such instrument shall be filed with the Trustee.

Section 6.12   Merger, Conversion, Consolidation or Succession to Business.
               -----------------------------------------------------------

               Any corporation into which the Trustee may be merged or converted
or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise eligible under this Article,
--------
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.

                                     -55-
<PAGE>

Section 6.13   Authenticating Agent.
               --------------------

               The Trustee may appoint an Authenticating Agent or Agents
acceptable to the Company with respect to the Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities issued
upon exchange or substitution pursuant to this Indenture. Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder, and every reference in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee's certificate of
authentication shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall at all times be a corporation organized and doing
business under the laws of the United States of America or any State thereof and
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than U.S.$100,000,000 or its equivalent in
another currency or composite currencies and subject to supervision or
examination by government authority. If such Authenticating Agent publishes
reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this
Section 6.13, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section
6.13, such Authenticating Agent shall resign immediately in the manner and with
the effect specified in this Section 6.13.

               Any corporation into which an Authenticating Agent may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
                      --------
under this Section 6.13, without the execution or filing of any paper or any
further act on the part of the Trustee or the Authenticating Agent.

               An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to such Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 6.13, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder, with
like effect as if originally named as an Authenticating Agent. No successor
Authenticating Agent shall be appointed unless eligible under the provisions of
this Section 6.13.

               If an Authenticating Agent is appointed with respect to the
Securities pursuant to this Section 6.13, the Securities may have endorsed
thereon, in addition to or in lieu of the Trustee's certification of
authentication, an alternative certificate of authentication in the following
form:

                                     -56-
<PAGE>

               This is one of the Securities (as the case may be) referred to in
the within-mentioned Indenture.

Dated:                                 Citibank, N.A., as Trustee

                                       By [Authenticating Agent or authorized
                                       representative], as Authenticating Agent

                                        By:_____________________________________
                                                 Authorized Signatory

Section 6.14   Disqualification; Conflicting Interests.
               ---------------------------------------

               If the Trustee has or shall acquire a conflicting interest within
the meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture.

                                  ARTICLE VII

               HOLDER'S LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 7.1    Company to Furnish Trustee Names and Addresses of Holders.
               ---------------------------------------------------------

               The Company will furnish or cause to be furnished to the Trustee

               (a)   semi-annually, not more than 15 days after the Regular
Record Date, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders of Securities as of such Regular Record Date,
and

               (b)   at such other times as the Trustee may reasonably
request in writing, within 30 days after the receipt by the Company of any such
request, a list of singular form and content as of a date not more than 15 days
prior to the time such list is furnished;

except that for so long as the Trustee is the Security Registrar, the Company
shall not be required to furnish to the Trustee the information required by this
Section 7. 1.

Section 7.2    Preservation of Information; Communications to Holders.
               ------------------------------------------------------

               (a)   The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders contained in the most
recent list furnished to the Trustee as provided in Section 7.1 and the names
and addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it pursuant to Section
7.1 upon receipt of a new list so furnished.

               (b)   The rights of Holders to communicate with other Holders
with respect to their rights under this Indenture or under the Securities, and
the corresponding rights and duties

                                     -57-
<PAGE>

of the Trustee, shall be as provided by the Trust Indenture Act for holders of
securities issued under an indenture qualified pursuant to the Trust Indenture
Act.

               (c)   Every Holder of Securities, by receiving and holding the
same, agrees with the Company and the Trustee that neither the Company nor the
Trustee nor any agent of either of them shall be held accountable by reason of
any disclosure of information as to names and addresses of Holders made pursuant
to the Trust Indenture Act or the Code.

Section 7.3    Reports by the Company.
               ----------------------

               (a)   The Company shall file with the Trustee, within 15 days
after the Company is required to file the same with the Commission, copies of
any annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the Commission may by rules
and regulations prescribe) which the Company may be required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act. In the event the
Company is not subject to Section 13 or 15(d) of the Exchange Act, it shall file
with the Trustee upon request the information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act.

               (b)   The Company shall file with the Trustee such additional
information, documents and reports with respect to compliance by the Company
with the conditions and covenants provided for in this Indenture as may be
reasonably requested from time to time by the Trustee.

                                 ARTICLE VIII

             CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 8.1    Company May Consolidate, Etc., Only on Certain Terms.
               ----------------------------------------------------

               The Company shall not consolidate with or merge into any other
Person or convey, transfer or lease all or substantially all of the Company's
properties and assets to any Person, and the Company shall not permit any Person
to consolidate with or merge into the Company or convey, transfer or lease its
properties and assets substantially as an entirety to the Company, unless:

               (1)   in case the Company shall consolidate with or merge into
         another Person or convey, transfer or lease all or substantially all of
         the Company's properties and assets to any Person, the Person formed by
         such consolidation or into which the Company is merged or the Person
         which acquires by conveyance or transfer, or which leases, all or
         substantially all of the Company's properties and assets shall be a
         corporation, partnership, trust or other entity, shall be organized and
         validly existing under the laws of the United States of America, any
         State thereof or the District of Columbia and shall expressly assume,
         by an indenture supplemental hereto, executed and delivered to the
         Trustee, in form satisfactory to the Trustee, the due and punctual
         payment of the principal of and any premium and interest on all the
         Securities and the performance or observance of every covenant of this
         Indenture on the part of the Company to be performed or observed;

                                     -58-
<PAGE>

               (2)   immediately after giving effect to such transaction and
         treating any indebtedness which becomes an obligation of the Company or
         any Subsidiary as a result of such transaction as having been incurred
         by the Company or such Subsidiary at the time of such transaction, no
         Event of Default, and no event which, after notice or lapse of time or
         both, would become an Event of Default, shall have happened and be
         continuing;

               (3)   if, as a result of any such consolidation or merger or such
         conveyance, transfer or lease, properties or assets of the Company
         would become subject to a Lien which would not be permitted by this
         Indenture, the Company or such successor Person, as the case may be,
         shall take such steps as shall be necessary effectively to secure the
         Securities equally and ratably with (or prior to) all indebtedness
         secured thereby; and

               (4)   the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger, conveyance, transfer or lease and, if a
         supplemental indenture is required in connection with such transaction,
         such supplemental indenture comply with this Article and that all
         conditions precedent herein provided for relating to such transaction
         have been complied with.

Section 8.2    Successor Substituted.
               ---------------------

               Upon any consolidation of the Company with, or merger of the
Company into, any other Person or any conveyance, transfer, sale or lease of all
or substantially all the properties and assets of the Company in accordance with
Section 8.1, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein, and thereafter the predecessor
Person shall be relieved of all obligations and covenants under this Indenture
and the Securities.

                                  ARTICLE IX

                            SUPPLEMENTAL INDENTURES

Section 9.1    Supplemental Indentures Without Consent of Holders of Securities.
               ----------------------------------------------------------------

               Without the consent of any Holders of Securities, the Company,
when authorized by a Board Resolution, and the Trustee, at any time and from
time to time, may enter into one or more indentures supplemental hereto, for any
of the following purposes:

               (1)   to evidence the succession of another Person to the Company
and the assumption by any such successor of the covenants and obligations of the
Company herein and in the Securities as permitted by this Indenture; or

               (2)   to add to the covenants of the Company for the benefit of
the Holders of Securities, or to surrender any right or power herein conferred
upon the Company; or

               (3)   to secure the Securities; or

                                     -59-
<PAGE>

               (4)   to modify the restrictions on, and procedures for, resale
and other transfers of the Securities to the extent required by any change in
applicable law or regulation (or the interpretation thereof) or in practice
relating to the resale or transfer of restricted securities generally; or

               (5)   to accommodate the issuance, if any, of Securities in book-
entry or definitive form and matters related thereto which do not adversely
affect the interest of the Holders of Securities; or

               (6)   to comply with any requirements of the Commission in order
to effect and maintain, to the extent required, the qualification of this
Indenture under the Trust Indenture Act; or

               (7)   to cure any ambiguity, to correct or supplement any
provision herein, which may be inconsistent with any other provision herein or
which is otherwise defective, or to make any other provisions with respect to
matters or questions arising under this Indenture as the Company and the Trustee
may deem necessary or desirable, provided, such action pursuant to this clause
                                 --------
(7) shall not adversely affect the interests of the Holders of Securities in any
material respect.

               Upon Company Request, accompanied by a Board Resolution
authorizing the execution of any such supplemental indenture, and subject to and
upon receipt by the Trustee of the documents described in Section 9.4 hereof,
the Trustee shall join with the Company in the execution of any supplemental
indenture authorized or permitted by the term of this Indenture and any further
appropriate agreements and stipulations which may be therein contained.

Section 9.2    Supplemental Indentures With Consent of Holders of Securities.
               -------------------------------------------------------------

               With either (a) the written consent of the Holders of not less
than a majority in aggregate principal amount of the Outstanding Securities of
each series affected by such supplemental indenture, by the Act of said Holders
delivered to the Company and the Trustee, or (b) by the adoption of a
resolution, at a meeting of Holders of the Outstanding Securities at which a
quorum is present, by the Holders of 66-2/3% in aggregate principal amount of
the Outstanding Securities of each series affected by such supplemental
indenture represented at such meeting (subject to Section 9.4), the Company,
when authorized by a Board Resolution, and the Trustee may enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the Holders of
Securities under this Indenture; provided, however, that no such supplemental
                                 --------  -------
indenture shall, without the consent or affirmative vote of the Holder of each
Outstanding Security affected thereby,

               (1)   change the Stated Maturity of the principal of, or any
installment of interest on, any Security, or reduce the principal amount thereof
or the rate of interest payable thereon, or change the coin or currency in which
any Security or the interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the Stated
Maturity thereof, or

                                     -60-
<PAGE>

               (2)   reduce the requirements of Section 10.4 for quorum or
voting, or reduce the percentage in aggregate principal amount of the
Outstanding Securities of either series the consent of whose Holders is required
for any such supplemental indenture or the consent of whose Holders is required
for any waiver provided for in this Indenture, or

               (3)   modify the obligation of the Company to maintain an office
or agency in The City of New York pursuant to Section 11.2, or

               (4)   modify any of the provisions of this Section, Section 5.13
or Section 11.14, except to increase any percentage contained herein or therein
or to provide that certain other provisions of this Indenture cannot be modified
or waived without the consent of the Holder of each Outstanding Security
affected thereby, or

               (5)   modify any of the provisions of Section 11.9 or 11.13.

               It shall not be necessary for any Act of Holders of Securities
under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof.

Section 9.3    Trustee Protected.
               -----------------

               If, in the opinion of the Trustee hereunder, any document
required to be executed pursuant to the term of Section 9.2 hereof adversely
affects any right, duty, immunity or indemnity with respect to it under this
Indenture, the Trustee in its discretion may decline to execute such document.

Section 9.4    Execution of Supplemental Indentures.
               ------------------------------------

               In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 6.1) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture and an Officers' Certificate to the
effect that all conditions precedent have been satisfied. The Trustee may, but
shall not be obligated to, enter into any such supplemental indenture which
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise.

Section 9.5    Effect of Supplemental Indentures.
               ---------------------------------

               Upon the execution of any supplemental indenture under this
Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and
every Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

Section 9.6    Reference in Securities to Supplemental Indentures.
               --------------------------------------------------

               Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in

                                     -61-
<PAGE>

form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities so modified as to
conform, in the opinion of the Company and the Trustee, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Securities.

Section 9.7    Notice of Supplemental Indentures.
               ---------------------------------

               Promptly after the execution by the Company and the Trustee of
any supplemental indenture pursuant to the provisions of Section 9.2, the
Company shall give notice to all Holders of Securities, in the manner provided
in Section 1.5, of such fact, setting forth in general terms the substance of
such supplemental indenture. Any failure of the Company to give such notice, or
any defect therein, shall not in any way impair or affect the validity of any
such supplemental indenture.

                                   ARTICLE X

                       MEETINGS OF HOLDERS OF SECURITIES

Section 10.1   Purposes for Which Meetings May Be Called.
               -----------------------------------------

               A meeting of Holders of Securities of either or both series may
be called at any time and from time to time pursuant to this Article to make,
give or take any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be made, given or taken by
Holders of Securities of such series.

Section 10.2   Call, Notice and Place of Meetings.
               ----------------------------------

               (a)   The Trustee may at any time call a meeting of Holders of
Securities of either series for any purpose specified in Section 10.1, to be
held at such time and at such place in The City of New York as the Trustee shall
determine. Notice of every meeting of Holders of Securities, setting forth the
time and the place of such meeting and in general terms the action proposed to
be taken at such meeting, shall be given, in the manner provided in Section 1.5,
not less than 21 nor more than 180 days prior to the date fixed for the meeting.

               (b)   In case at any time the Company, pursuant to a Board
Resolution, or the Holders of at least 25% in aggregate principal amount of the
Outstanding Securities of either series shall have requested the Trustee to call
a meeting of the Holders of Securities of such series for any purpose specified
in Section 10.1, by written request setting forth in reasonable detail the
action proposed to be taken at the meeting, and the Trustee shall not have made
the first publication of the notice of such meeting within 21 days after receipt
of such request or shall not thereafter proceed to cause the meeting to be held
as provided herein, then the Company or the Holders of Securities of such series
in the amount specified, as the case may be, may determine the time and the
place in The City of New York for such meeting and may call such meeting for
such purposes by giving notice thereof as provided in paragraph (a) of this
Section.

                                     -62-
<PAGE>

Section 10.3   Persons Entitled to Vote at Meetings.
               ------------------------------------

               To be entitled to vote at any meeting of Holders of Securities of
either series, a Person shall be (a) a Holder of one or more Outstanding
Securities of the applicable series, or (b) a Person appointed by an instrument
in writing as proxy for a Holder or Holders of one or more Outstanding
Securities of the applicable series by such Holder or Holders. The only Persons
who shall be entitled to be present or to speak at any meeting of Holders shall
be the Persons entitled to vote at such meeting and their counsel, any
representatives of the Trustee and its counsel and any representatives of the
Company and its counsel.

Section 10.4   Quorum; Action.
               --------------

               The Persons entitled to vote a majority in principal amount of
the Outstanding Securities of the series as to which a meeting has been called
shall constitute a quorum. In the absence of a quorum within 30 minutes of the
time appointed for any such meeting, the meeting shall, if convened at the
request of Holders of Securities, be dissolved. In any other case, the meeting
may be adjourned for a period of not less than 10 days as determined by the
chairman of the meeting prior to the adjournment of such meeting. In the absence
of a quorum at any such adjourned meeting, such adjourned meeting may be further
adjourned for a period not less than 10 days as determined by the chairman of
the meeting prior to the adjournment of such adjourned meeting (subject to
repeated applications of this sentence). Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 10.2(a), except that
such notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly the percentage of the principal amount
of the Outstanding Securities which shall constitute a quorum.

               Subject to the foregoing, at the reconvening of any meeting
adjourned for a lack of a quorum, the persons entitled to vote 25% in aggregate
principal amount of the Outstanding Securities of the applicable series (or of
both series, as the case may be) at the time shall constitute a quorum for the
taking of any action set forth in the notice of the original meeting.

               At a meeting or an adjourned meeting duly reconvened and at
which a quorum is present as aforesaid, any resolution and all matters (except
as limited by the proviso to Section 9.2) shall be effectively passed and
decided if passed or decided by the Persons entitled to vote not less than 66
2/3% in aggregate principal amount of Outstanding Securities of the applicable
series represented and voting at such meeting.

               Any resolution passed or decisions taken at any meeting of
Holders of Securities of either series duly held in accordance with this Section
shall be binding on all the Holders of Securities of the applicable series,
whether or not present or represented at the meeting.

Section 10.5   Determination of Voting Rights; Conduct and Adjournment of
               ----------------------------------------------------------
Meetings.
--------

               (a)   Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any
meeting of Holders of Securities in regard to proof of the holding of Securities
and of the appointment of proxies and in regard to the appointment and duties of
inspectors of votes, the submission and examination of

                                     -63-
<PAGE>

proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall deem appropriate.
Except as otherwise permitted or required by any such regulations, the holding
of Securities shall be proved in the manner specified in Section 1.3 and the
appointment of any proxy shall be proved in the manner specified in Section 1.3.
Such regulations may provide that written instruments appointing proxies,
regular on their face, may be presumed valid and genuine without the proof
specified in Section 10.3 or other proof.

               (b)   The Trustee shall, by an instrument in writing, appoint a
temporary chairman (which may be the Trustee) of the meeting, unless the meeting
shall have been called by the Company or by Holders of Securities as provided in
Section 10.2(b), in which case the Company or the Holders of Securities calling
the meeting, as the case may be, shall in like manner appoint a temporary
chairman. A permanent chairman and a permanent secretary of the meeting shall be
elected by vote of the Persons entitled to vote a majority in principal amount
of the Outstanding Securities of the applicable series represented at the
meeting.

               (c)   At any meeting, each Holder of a Security of the applicable
series or proxy shall be entitled to one vote for each U.S. $1,000 principal
amount of Securities of such series held or represented by him; provided,
                                                                --------
however, that no vote shall be cast or counted at any meeting in respect of any
-------
Security challenged as not Outstanding and ruled by the chairman of the meeting
to be not Outstanding. The chairman of the meeting shall have no right to vote,
except as a Holder of a Security or proxy.

               (d)   Any meeting of Holders of Securities duly called pursuant
to Section 10.2 at which a quorum is present may be adjourned from time to time
by Persons entitled to vote a majority in principal amount of the Outstanding
Securities of the applicable series represented at the meeting, and the meeting
may be held as so adjourned without further notice.

Section 10.6   Counting Votes and Recording Action of Meetings.
               -----------------------------------------------

               The vote upon any resolution submitted to any meeting of Holders
of Securities shall be by written ballots on which shall be subscribed the
signatures of the Holders of Securities or of their representatives by proxy and
the principal amounts and serial numbers of the Outstanding Securities held or
represented by them. The permanent chairman of the meeting shall appoint two
inspectors of votes who shall count all votes cast at the meeting for or against
any resolution and who shall make and file with the secretary of the meeting
their verified written reports in duplicate of all votes cast at the meeting. A
record, at least in duplicate, of the proceedings of each meeting of Holders of
Securities shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more Persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 10.2 and, if
applicable, Section 10.4. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

                                     -64-
<PAGE>

                                  ARTICLE XI

                                   COVENANTS

Section 11.1   Payment of Principal and Interest.
               ---------------------------------

               The Company will duly and punctually pay the principal of and
interest on the Securities in accordance with the term of the Securities and
this Indenture.

Section 11.2   Maintenance of Offices or Agencies.
               ----------------------------------

               The Company hereby appoints the Corporate Trust Office of the
Trustee as its agent in The City of New York where Securities may be presented
or surrendered for payment, where Securities may be surrendered for registration
of transfer or exchange and where notices and demands to or upon the Company in
respect of the Securities and this Indenture may be served.

               The Company hereby appoints the principal corporate trust office
of the Trustee as Paying Agent for the payment of principal of and interest on
the Securities, and appoints the office of the Trustee as transfer agent where
Securities may be surrendered for registration of transfer or exchange.

               The Company may at any time and from time to time vary or
terminate the appointment of any such agent or appoint any additional agents
with or without cause for any or all of such purposes; provided, however, that
                                                       --------  -------
until all of the Securities have been delivered to the Trustee for cancellation,
or moneys sufficient to pay the principal of and interest on the Securities have
been made available for payment and either paid or returned to the Company
pursuant to the provisions of Section 11.3, the Company will maintain in the
Borough of Manhattan, The City of New York, an office or agency where Securities
may be presented or surrendered for payment, where Securities may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company, in respect of the Securities and this Indenture, may be
served. The Company will give prompt written notice to the Trustee, and will
give notice to Holders of Securities in the manner specified in Section 1.5, of
the appointment or termination of any such agents and of the location and any
change in the location of any such office or agency.

               If at any time the Company shall fail to maintain any such
required office or agency, or shall fail to furnish the Trustee with the address
thereof, presentations and surrenders may be made and notices and demands may be
served on the Corporate Trust Office of the Trustee, and the Company hereby
appoints the same as its agent to receive such respective presentations, notices
and demands.

Section 11.3   Money for Security Payments To Be Held in Trust.
               -----------------------------------------------

               If the Company at any time shall act as its own Paying Agent,
it will, on or before each due date of the principal of or interest on any of
the Securities, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal or interest so

                                     -65-
<PAGE>

becoming due until such sums shall be paid to such Persons or otherwise disposed
of as herein provided and the Company will promptly notify the Trustee of its
action or failure so to act.

               Whenever the Company shall have one or more Paying Agents, it
will, prior to or on each due date of the principal of or interest on any
Securities, deposit with a Paying Agent a sum sufficient to pay the principal or
interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal or interest, and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee of any failure so to
act.

               The Company will cause each Paying Agent other than the Trustee
or affiliate of the Trustee to execute and deliver to the Trustee an instrument
in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section, that such Paying Agent will:

               (1)   hold all sums held by it for the payment of the principal
         of or interest on Securities in trust for the benefit of the Persons
         entitled thereto until such sums shall be paid to such persons or
         otherwise disposed of as herein provided;

               (2)   give the Trustee written notice of any default by the
         Company (or any other obligor upon the securities) in the making of any
         payment of principal or interest; and

               (3)   at any time during the continuance of any such default,
         upon the written request of the Trustee, forthwith pay to the Trustee
         all sums so held in trust by such Paying Agent.

               The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.

               Any money deposited with the Trustee or any Paying Agent, or then
held by the Company, in trust for the payment of the principal of or interest on
any Security and remaining unclaimed for two years after such principal or
interest has become due and payable shall be paid to the Company on Company
Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as a general unsecured
creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided, however,
                                                          --------  -------
that the Trustee or such Paying Agent, before making any such repayment, may at
the expense of the Company cause to be published once, in an Authorized
Newspaper in the Borough of Manhattan, The City of New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company, and
provided, further, that any such publication shall not relieve
--------  -------

                                     -66-
<PAGE>

the Trustee or any Paying Agent of their obligation to pay any amounts to the
Company in the manner provided in this Section 11.3.

Section 11.4   Corporate Existence.
               -------------------

               Subject to Article VIII, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate
existence, rights (charter and statutory) and franchises; provided, however,
                                                          --------  -------
that the Company shall not be required to preserve any such right or franchise
if the Board of Directors of the Company shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and
that the loss thereof is not disadvantageous in any material respect to the
Holders.

Section 11.5   Maintenance of Properties.
               -------------------------

               The Company shall maintain or cause to be maintained in good
repair, working order and condition all properties used or useful in the
business of the Company and its Subsidiaries and from time to time will make or
cause to be made all appropriate repairs, renewals and replacements thereof, if
the failure to perform such actions would in the aggregate have a Material
Adverse Effect.

Section 11.6   Maintenance of Insurance.
               ------------------------

               The Company shall maintain or cause to be maintained, through
self-insurance or with financially sound and reputable insurers, insurance with
respect to their properties and business and the properties and business of
their Subsidiaries against loss or damage of the kinds customarily insured
against by corporations of established reputation engaged in the same or similar
businesses and similarly situated, of such types and in such amounts as are
customarily carried under similar circumstances by such other corporations, if
the failure to do so would (as to all such failures in the aggregate) have a
Material Adverse Effect.

Section 11.7   Compliance with Laws.
               --------------------

               The Company shall comply with the requirements of each applicable
Requirement of Law, except where the failure to do so would not in the aggregate
have a Material Adverse Effect.

Section 11.8   Payment of Taxes and Claims.
               ---------------------------

               The Company shall pay, and cause each of its Subsidiaries to pay,
all taxes, assessments and other charges (other than taxes, assessments and
other governmental charges not exceeding $5,000,000 in the aggregate) imposed
upon them or any of their properties or assets or in respect of any of their
franchises, business, income or property before any penalty or interest accrues
thereon, and all claims (including, without limitation, claims for labor,
services, materials and supplies) for sums (other than claims not exceeding
$5,000,000 in the aggregate) which have become due and payable and which by law
have or may become a Lien upon any of their properties or assets, prior to the
time when any penalty or fine shall be incurred with respect thereto; provided
that no such governmental charge or claim need be paid if it is being contested

                                     -67-
<PAGE>

in good faith by appropriate proceedings and if such reserve or other
appropriate provision, if any, as shall be required in conformity with GAAP
shall have been made therefor.

Section 11.9   Delivery of Certain Information.
               -------------------------------

               At any time when the Company is not subject to Section 13 or
15(d) of the Exchange Act or is exempt therefrom, upon the request of a Holder
of a Restricted Security, the Company will as promptly as reasonably practicable
furnish or cause to be furnished Rule 144A Information (as defined below) to
such Holder of Restricted Securities, or to a prospective purchaser of such
security designated by any such Holder or holder, as the case may be, to the
extent required to permit compliance by such holder with Rule 144A under the
Securities Act (or any successor provision thereto) in connection with the
resale of such Security by such Holder; provided, however, that the Company
                                        --------  -------
shall not be required to furnish such information in connection with any request
made on or after the date which is three years from the later of (i) the date
such a security (or any predecessor security) was acquired from the Company and
(ii) the date such a security (or any predecessor security) was last acquired
from the Company or an "affiliate" of the Company within the meaning of Rule 144
under the Securities Act (or any successor provision thereto); and provided,
                                                                   --------
further, that the Company shall not be required to furnish such information at
-------
any time to a prospective purchaser located outside the United States who is not
a "U.S. Person" within the meaning of Regulation S under the Securities Act if
such Security may then be sold to such prospective purchaser in accordance with
Rule 904 under the Securities Act (or any successor provision thereto). "Rule
144A Information" shall be such information as is specified pursuant to Rule
144A(d)(4) under the Securities Act (or any successor provision thereto).

          At any time when the Company is not subject to Section 13 or 15(d) of
the Exchange Act and therefore is not a reporting company pursuant thereto, the
Company will make available to each Holder of any Security (in reasonable
quantities for redistribution to beneficial owners), annual audited consolidated
financial statements of the Company, with the notes thereto and with a report
thereon by independent accountants of established national reputation (to be
available within 90 days after the end of each fiscal year), and unaudited
quarterly consolidated financial statements of the Company, without notes or
with abbreviated notes and without any such report thereon (to be available
within 60 days after the end of each of the first three quarters of each fiscal
year). Such financial statements shall be prepared in accordance with generally
accepted accounting principles (except for such omitted or abbreviated notes in
the case of the quarterly financial statements). Such financial statements shall
be mailed or otherwise distributed to Holders by such method as the Company may
reasonably determine.

Section 11.10  Limitation on Liens.
               -------------------

               The Company will not, and will not permit any Restricted
Subsidiary to, create, incur, issue, assume or guarantee any Indebtedness
secured by a Lien upon any Principal Property, or upon shares of capital stock
or Indebtedness issued by any Restricted Subsidiary and owned by the Company or
any Restricted Subsidiary, now or hereafter acquired, without effectively
providing concurrently that the Securities of each series then outstanding are
secured equally and ratably with or, at the option of the Company, prior to such
Indebtedness so long as such Indebtedness shall be so secured.

                                     -68-
<PAGE>

               The foregoing restriction shall not apply to, and there shall be
excluded from Indebtedness in any computation under such restriction,
Indebtedness secured by (i) Liens on any property existing at the time of the
acquisition thereof; (ii) Liens on property of a corporation existing at the
time such corporation is merged into or consolidated with the Company or a
Restricted Subsidiary or at the time of a sale, lease or other disposition all
or substantially all of the properties of such corporation (or a division
thereof) to the Company or a Restricted Subsidiary, provided that any such Lien
                                                    --------
does not extend to any property owned by the Company or any Restricted
Subsidiary immediately prior to such merger, consolidation, sale, lease or
disposition; (iii) Liens on property of a corporation existing at the time such
corporation becomes a Restricted Subsidiary; (iv) Liens in favor of the Company
or a Restricted Subsidiary; (v) Liens to secure all or part of the cost of
acquisition, construction, development or improvement of the underlying
property, or to secure Indebtedness incurred to provide funds for any such
purpose, provided that the commitment of the creditor to extend the credit
         --------
secured by any such Lien shall have been obtained not later than 180 days after
the later of (A) the completion of the acquisition, construction, development or
improvement of such property and (B) the placing in operation of such property
or of such property as so constructed, developed or improved; (vi) Liens in
favor of the United States of America or any State thereof, or any department,
agency or instrumentality or political subdivision thereof, to secure partial,
progress, advance or other payments; (vii) Liens securing industrial revenue or
pollution control bonds; and (viii) Liens existing on the date of the Indenture
or any extension, renewal or replacement or refunding of any Indebtedness
secured by a Lien existing on the date of the Indenture or referred to in clause
(i), (ii), (iii) or (v); provided, however, that the principal amount of
                         --------  -------
Indebtedness secured thereby and not otherwise authorized by clauses (i) through
(vii) shall not exceed the principal amount of Indebtedness, plus any premium or
fee payable in connection with any such extension, renewal, replacement, or
refunding, so secured at the time of such extension, renewal, replacement or
refunding.

               Notwithstanding the restrictions described above, the Company and
its Restricted Subsidiaries may create, incur, issue, assume or guarantee
Indebtedness secured by Liens without equally and ratably securing the
Securities of each series then outstanding if, at the time of such creation,
incurrence, issuance, assumption or guarantee, after giving effect thereto and
to the retirement of any Indebtedness which is concurrently being retired, the
aggregate amount of all outstanding Indebtedness secured by Liens which would
otherwise be subject to such restrictions (other than any Indebtedness secured
by Liens permitted as described in clauses (i) through (viii) of the immediately
preceding paragraph) plus all Attributable Indebtedness in respect of sale and
leaseback transactions with respect to Principal Properties (with the exception
of such transactions which are permitted under clauses (i) through (v) of the
first sentence of the first paragraph of Section l1.11) does not exceed 10% of
Consolidated Net Tangible Assets.

Section 11.11  Limitation on Sale and Leaseback Transactions.
               ---------------------------------------------

               The Company will not, and will not permit any Restricted
Subsidiary to, enter into any sale and leaseback transaction with respect to any
Principal Property unless: (i) the sale and leaseback transaction is solely with
the Company or another Restricted Subsidiary; (ii) the lease is for a period not
in excess of three years, including renewal rights; (iii) the lease secures or
relates to industrial revenue or pollution control bonds; (iv) the Company or
such Restricted Subsidiary would (at the time of entering into such arrangement)
be entitled as described in

                                     -69-
<PAGE>

clauses (i) through (viii) of the second paragraph of Section 11.10, without
equally and ratably securing the Securities of each series then outstanding, to
create, incur, issue, assume or guarantee Indebtedness secured by a Lien on such
Principal Property in the amount of the Attributable Indebtedness arising from
such sale and leaseback transaction; (v) the Company or such Restricted
Subsidiary, within 180 days after the sale of such Principal Property in
connection with such sale and leaseback transaction is completed, applies an
amount equal to the greater of (A) the net proceeds of the sale of the Principal
Property leased and (B) the fair market value of the Principal Property leased
to (1) the retirement of Securities, other Funded Indebtedness of the Company
ranking on a parity with the Securities, or Funded Indebtedness of a Restricted
Subsidiary or (2) the purchase of other property which will constitute a
Principal Property having a value at least equal to the value of the Principal
Property leased; or (vi) the Attributable Indebtedness of the Company and its
Restricted Subsidiaries in respect of such sale and leaseback transaction and
all other sale and leaseback transactions entered into after the date of this
Indenture (other than any such sale and leaseback transactions as would be
permitted as described in clauses (i) through (v) of this sentence), plus the
aggregate principal amount of Indebtedness secured by Liens on Principal
Properties then outstanding (not including any such Indebtedness secured by
Liens described in clauses (i) through (viii) of the second paragraph of Section
11.10) which do not equally and ratably secure such outstanding Securities (or
secure such outstanding Securities on a basis that is prior to other
Indebtedness secured thereby), would not exceed 10% of Consolidated Net Tangible
Assets.

Section 11.12  Statement by Officers as to Default.
               -----------------------------------

               The Company shall deliver to the Trustee within 120 days after
the end of each fiscal year of the Company an Officers' Certificate stating that
a review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the Officers
signing such certificate, with a view to determining whether any default exists
in the performance and observance of any of the terms, provisions and conditions
of this Indenture and whether the Company has observed, performed and fulfilled
its obligations under this Indenture. If the Officers signing the Certificate
know of such a default, the Officers' Certificate shall describe such default
and its status with particularity. The Company shall also promptly notify the
Trustee if the Company's fiscal year is changed so that the end thereof is on
any date other than the then current fiscal year end date.

               The Company will also deliver to the Trustee, forthwith upon any
Officer becoming aware of any Event of Default, an Officers' Certificate
specifying with particularity such default or Event of Default and further
stating what action the Company has taken, is taking or proposes to take with
respect thereto.

Section 11.13   Resale of Certain Securities.
                ----------------------------

                During the period beginning on November 6, 1996 and ending on
November 6, 1999, the Company will not, and will not permit any of its
"affiliates" (as defined under Rule 144 under the Securities Act or any
successor provision thereto) to, resell any Securities which constitute
"restricted securities" under Rule 144 that have been reacquired by any of them.
The Trustee shall have no responsibility in respect of the Company's performance
of its agreement in the preceding sentence.

                                     -70-
<PAGE>

Section 11.14  Waiver of Certain Covenants.
               ---------------------------

               The Company may, with respect to the Securities of either series,
omit in any particular instance to comply with any covenant or condition set
forth in any covenant provided pursuant to Sections 11.5 to 11.11, inclusive,
for the benefit of Holders of such series if before the time for such compliance
the Holders of at least a majority in principal amount of the Outstanding
Securities of such series (or such lesser amount as shall have acted at a
meeting pursuant to the provisions of this Indenture) shall either waive such
compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company and the duties of the Trustee
in respect of any such covenant or condition shall remain in full force and
effect.

Section 11.15  Book-Entry System.
               -----------------

               If the Securities cease to trade in the U.S. Depository's book-
entry settlement system, the Company covenants and agrees that it shall use
reasonable efforts to make such other book-entry arrangements that it determines
are reasonable for the Securities.

                                     -71-
<PAGE>

                              __________________

               This instrument may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

               IN WITNESS WHEREOF, the parties hereto have caused this Indenture
to be duly executed, and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.

                                 LEVI STRAUSS & CO.

                                 By /s/ Joseph M. Maurer
                                    ------------------------------------------
                                    Name: Joseph M. Maurer
                                    Title: Vice President & Treasurer

                                 By /s/ Maeve L.J. Richard
                                    ------------------------------------------
                                    Name: Maeve L.J. Richard
                                    Title: Assistant Treasurer

[SEAL]

     Attest:

  /s/ Nenita T. Sobejana
------------------------------
Name:  Nenita T. Sobejana
Title:  Secretary

                                 CITIBANK, N.A., not in its individual capacity
                                 but solely as Trustee

                                 By___________________________________________
                                   Name:
                                   Title:

[SEAL]

                                     -72-
<PAGE>

     Attest:

__________________________
Name:_____________________
Title:____________________
      _______________

                                     -73-
<PAGE>

State of          California
        ----------------------------

County of         San Francisco
         ---------------------------

On November 5, 1996                  before me, ANITA L. DRENNAN, NOTARY PUBLIC,
   ---------------------------------            -------------------------------
              DATE                   NAME, TITLE OF OFFICER - E.G., "JANE DOE,
                                     NOTARY PUBLIC"

personally appeared        JOSEPH M. MAURER, VICE-PRESIDENT & TREASURER,
                   ------------------------------------------------------------
                                        NAME(S) OF SIGNER(S)

[X] personally known to me - OR - [_] proved to me on the basis of satisfactory
                                        evidence to be the person(s) whose
                                        name(s) is/are subscribed to the within
                                        instrument and acknowledged to me that
           [SEAL]                       he/she/they executed the same in
                                        his/her/their authorized capacity(ies),
                                        and that by his/her/their signature(s)
                                        on the instrument the person(s), or the
                                        entity upon behalf of which the
                                        person(s) acted, executed the
                                        instrument.

                                          WITNESS my hand and official seal.

                                          /s/ Anita L. Drennan
                                          --------------------------------------
                                             SIGNATURE OF NOTARY

================================== OPTIONAL ====================================

Though the data below is not required by law, it may prove valuable to persons
relying on the document and could prevent fraudulent reattachment of this form.

   CAPACITY CLAIMED BY SIGNER                DESCRIPTION OF ATTACHED DOCUMENT

[_] INDIVIDUAL
[X] CORPORATE OFFICER
                                             ___________________________________
                                                  TITLE OR TYPE OF DOCUMENT
__________________________________
                     TITLE(S)
[_] PARTNER(S)       [_] LIMITED
                     [_] GENERAL             ___________________________________
[_] ATTORNEY-IN-FACT                                  NUMBER OF PAGES
[_] TRUSTEE(S)
[_] GUARDIAN/CONSERVATOR
[_] OTHER:________________________           ___________________________________
    ______________________________                    DATE OF DOCUMENT
    ______________________________

SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)             ___________________________________
__________________________________            SIGNER(S) OTHER THAN NAMED ABOVE
__________________________________
<PAGE>

State of        California
        ----------------------------

County of       San Francisco
         ---------------------------

On November 5, 1996                  before me, ANITA L. DRENNAN, NOTARY PUBLIC,
   ---------------------------------            -------------------------------
                DATE                 NAME, TITLE OF OFFICER - E.G., "JANE DOE,
                                     NOTARY PUBLIC"

personally appeared         MAEVE L. J. RICHARD, ASSISTANT TREASURER,
                    -----------------------------------------------------------
                                          NAME(S) OF SIGNER(S)

[X] personally known to me - OR - [_] proved to me on the basis of satisfactory
                                          evidence to be the person(s) whose
                                          name(s) is/are subscribed to the
                                          within instrument and acknowledged to
           [SEAL]                         me that he/she/they executed the same
                                          in his/her/their authorized
                                          capacity(ies), and that by
                                          his/her/their signature(s) on the
                                          instrument the person(s), or the
                                          entity upon behalf of which the
                                          person(s) acted, executed the
                                          instrument.

                                            WITNESS my hand and official seal.

                                            /s/ Anita L. Drennan
                                            ------------------------------------
                                                     SIGNATURE OF NOTARY

================================== OPTIONAL ====================================

Though the data below is not required by law, it may prove valuable to persons
relying on the document and could prevent fraudulent reattachment of this form.

    CAPACITY CLAIMED BY SIGNER                 DESCRIPTION OF ATTACHED DOCUMENT

[_] INDIVIDUAL
[X] CORPORATE OFFICER
                                               _________________________________
_____________________________________              TITLE OR TYPE OF DOCUMENT
                         TITLE(S)
[_] PARTNER(S)           [_] LIMITED
                         [_] GENERAL           _________________________________
[_] ATTORNEY-IN-FACT                                   NUMBER OF PAGES
[_] TRUSTEE(S)
[_] GUARDIAN/CONSERVATOR                       _________________________________
[_] OTHER:___________________________                  DATE OF DOCUMENT
    _________________________________
    _________________________________

SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)               _________________________________
_____________________________________          SIGNER(S) OTHER THAN NAMED ABOVE
_____________________________________

<PAGE>

                             ____________________

     This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

                                                     LEVI STRAUSS & CO.

                                                     By________________________
                                                       Name:
                                                       Title:

                                                     By________________________
                                                       Name:
                                                       Title:

[SEAL]

     Attest:

________________________
Name:___________________
Title:__________________
      __________

                                                     CITIBANK, N.A., not in its
                                                     individual capacity but
                                                     solely as Trustee

                                                     By /s/ Robert T. Kirchner
                                                       ------------------------
                                                       Name: Robert T. Kirchner
                                                       Title: Vice President

[SEAL]

     Attest:

                                     -76-
<PAGE>

__________________________________
Name:    /s/ Wafaa Orfy
     -----------------------------
Title:   Senior Trust Officer
      ----------------------------
      _________________

                                     -77-
<PAGE>

STATE OF CALIFORNIA                         )
                                                     :ss.:
COUNTY OF SAN FRANCISCO                     )

                  On the 6th day of November 1996, before me personally
came_______________ , to me known, who, being by me duly sworn, did depose and
say that he is ______________ of Levi Strauss & Co., one of the corporations
described in and which executed the foregoing installment; that he/she knows the
seal of said corporation; that the seal affixed to said instrument is such
corporate seal; that it was so affixed by authority of the Board of Directors of
said corporation; and that he/she signed his name thereto by like authority.

                                              _______________________________
                                                       Notary Public

STATE OF NEW YORK            )
                                 :ss.:
COUNTY OF NEW YORK           )

                  On the 6th day of November 1996, before me personally came
Robert Kirchner, to me known, who, being by me duly sworn, did depose and say
that he is Vice President of Citibank, N.A., one of the corporations described
in and which executed the foregoing instrument; that he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation; and that he signed his name thereto by like authority.

                                               /s/ Jeffry Borgen
                                               -------------------------------
                                                         Notary Public

                                     -78-
<PAGE>

                                                                       ANNEX A-1

                        FORM OF TRANSFER CERTIFICATE--
                         RESTRICTED GLOBAL SECURITY TO
                    TEMPORARY REGULATION S GLOBAL SECURITY

                     REGULATION S GLOBAL NOTE CERTIFICATE
                 (for transfers pursuant to Section 3.5(b)(3)
                               of the Indenture)

Citibank, N.A., as Trustee
111 Wall Street, 5th Floor
New York, New York  10043

                       Re:      Levi Strauss & Co.
                                [6.80%] [or] [7.00%] Notes
                                due November 1, 200[3] [or] [6] (the "Notes")
                                ---------------------------------------------

                  Reference is hereby made to the Indenture, dated as of
November 6, 1996 (the "Indenture"), between Levi Strauss & Co., as Issuer, and
Citibank, N.A., as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

                  This certificate relates to U.S.$____ aggregate principal
amount of Notes which are evidenced by the Restricted Global Security (CUSIP
No.____) and held with the U.S. Depository in the name of [insert name of
transferor] (the "Transferor"). The Transferor has requested a transfer of such
beneficial interest in the Notes to a Person who will take delivery thereof in
the form of an equal aggregate principal amount of Securities evidenced by the
Temporary Regulation S Global Security (CUSIP No.____), which amount,
immediately after such transfer, is to be held with the U.S. Depository through
Euroclear or CEDEL or both.

                  In connection with such request and in respect of such
Securities, the Transferor does hereby certify that such transfer has been
effected pursuant to and in accordance with Rule 903 or Rule 904 under the
United States Securities Act of 1933, as amended (the "Securities Act"), and
accordingly the Transferor does hereby further certify that:

                  (1)   the offer of the Securities was not made to a person in
                        the United States;

                  (2)   either:

                        (A)   at the time the buy order was originated, the
                              transferee was outside the United States or the
                              Transferor and any person acting on its behalf
                              reasonably believed that the transferee was
                              outside the United States, or

                        (B)   the transaction was executed in, on or through the
                              facilities of a designated offshore securities
                              market and neither the Transferor nor any person
                              acting on its behalf knows that the transaction
                              was prearranged with a buyer in the United States;

                                     A-1-1
<PAGE>

                  (3)      no directed selling efforts have been made in
                           contravention of the requirements of Rule 903(b) or
                           904(b) of Regulation S, as applicable;

                  (4)      the transaction is not part of a plan or scheme to
                           evade the registration requirements of the Securities
                           Act; and

                  (5)      upon completion of the transaction, the beneficial
                           interest being transferred as described above was
                           held with the U.S. Depository through Euroclear or
                           CEDEL or both.

                  We understand that this certificate is required in connection
with certain securities laws of the United States. In connection therewith, if
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate to any interested party in such proceeding. This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuer and Goldman, Sachs & Co., Lehman Brothers Inc., J.P.
Morgan Securities Inc., Morgan, Stanley & Co. Incorporated, BA Securities, Inc.
and Dillon, Read & Co. Inc. as initial purchasers of the Notes. Term used in
this certificate and not otherwise defined in the Indenture have the meanings
set forth in Regulation S under the Securities Act.

Dated:                                       [Insert Name of Transferor]

                                             By:________________________________
                                                Name:
                                                Title:

                                                (If the registered owner is a
                                                corporation, partnership or
                                                fiduciary, the title of the
                                                Person signing on behalf of such
                                                registered owner must be
                                                stated.)

                                     A-1-2
<PAGE>

                                                                       ANNEX A-2

                        FORM OF TRANSFER CERTIFICATE--
                         RESTRICTED GLOBAL SECURITY TO
                         REGULATION S GLOBAL SECURITY

                     REGULATION S GLOBAL NOTE CERTIFICATE
                 (for transfers pursuant to Section 3.5(b)(4)
                               of the Indenture)

Citibank, N.A., as Trustee
111 Wall Street, 5th Floor
New York, New York 10043

                       Re:      Levi Strauss & Co.
                                [6.80%] [or] [7.00%] Notes
                                due November 1, 200[3] [or] [6] (the "Notes")
                                ---------------------------------------------

                  Reference is hereby made to the Indenture, dated as of
November 6, 1996 (the "Indenture"), between Levi Strauss & Co., as Issuer, and
Citibank, N.A., as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

                  This certificate relates to U.S.$____ aggregate principal
amount of Notes which are evidenced by the Restricted Global Security (CUSIP
No.____) and held with the U.S. Depository in the name of [insert name of
transferor] (the "Transferor"). The Transferor has requested a transfer of such
beneficial interest in the Notes to a Person who will take delivery thereof in
the form of an equal aggregate principal amount of Notes evidenced by the
Regulation S Global Security (CUSIP No.____).

                  In connection with such request and in respect of such Notes,
the Transferor does hereby certify that:

                  (1)   with respect to transfers made in reliance on Regulation
                        S under the Securities Act of 1933, as amended (the
                        "Securities Act"):

                        (A)   the offer of the Notes was not made to a person in
                              the United States;

                        (B)   either:

                              (i)  at the time the buy order was originated, the
                                   transferee was outside the United States or
                                   the Transferor and any person acting on its
                                   behalf reasonably believed that the
                                   transferee was outside the United States, or

                              (ii) the transaction was executed in, on or
                                   through the facilities of a designated
                                   offshore securities market and neither the
                                   Transferor nor any person acting on its
                                   behalf knows that

                                     A-2-1
<PAGE>

                                   the transaction was prearranged with a
                                   buyer in the United States;

                        (C)   no directed selling efforts have been made in
                              contravention of the requirements of Rule 903(b)
                              or 904(b) of Regulation S, as applicable; and

                        (D)   the transaction is not part of a plan or scheme to
                              evade the registration requirements of the
                              Securities Act; or

                  (2)   with respect to transfers made in reliance on Rule 144
                        under the Securities Act, the Notes are being
                        transferred in a transaction permitted by Rule 144 under
                        the Securities Act.

                  We understand that this certificate is required in connection
with certain securities laws of the United States. In connection therewith, if
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate to any interested party in such proceeding. This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuer and Goldman, Sachs & Co., Lehman Brothers Inc., J.P.
Morgan Securities Inc., Morgan, Stanley & Co. Incorporated, BA Securities, Inc.
and Dillon, Read & Co. Inc. as initial purchasers of the Notes. Terms used in
this certificate and not otherwise defined in the Indenture have the meanings
set forth in Regulation S under the Securities Act.

Dated:                                        [Insert Name of Transferor]

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                                 (If the registered owner is a
                                                 corporation, partnership or
                                                 fiduciary, the title of the
                                                 Person signing on behalf of
                                                 such registered owner must be
                                                 stated.)

                                     A-2-2
<PAGE>

                                                                         ANNEX B

                        FORM OF TRANSFER CERTIFICATE--
                   TEMPORARY REGULATION S GLOBAL SECURITY OR
                    REGULATION S GLOBAL SECURITY RESTRICTED
                                GLOBAL SECURITY

                      RESTRICTED GLOBAL NOTE CERTIFICATE
                 (for transfers pursuant to Section 3.5(b)(5)
                               of the Indenture)

Citibank, N.A., as Trustee
111 Wall Street, 5th Floor
New York, New York 10043

                       Re:      Levi Strauss & Co.
                                [6.80%] [or] [7.00%] Notes
                                due November 1, 200[3] [or] [6] (the "Notes")
                                ---------------------------------------------

                  Reference is hereby made to the Indenture, dated as of
November 6, 1996 (the "Indenture"), between Levi Strauss & Co., as Issuer, and
Citibank, N.A., as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

                  This certificate relates to U.S.$ _____________ aggregate
principal amount of Notes which are evidenced by the Temporary Regulation S
Global Security or the Regulation S Global Security (CUSIP No._______) and held
with the U.S. Depository through Euroclear or CEDEL or both in the name of
[insert name of transferor] (the "Transferor") during the Restricted Period. The
Transferor has requested a transfer of such beneficial interest in the Notes to
a Person that will take delivery thereof in the form of an equal principal
amount of Notes evidenced by the Restricted Global Security (CUSIP
No.___________).

                  In connection with such request and in respect of such Notes,
the Transferor does hereby certify that such transfer has been effected pursuant
to and in accordance with Rule 144A under the United States Securities Act of
1933, as amended, and accordingly the Transferor does hereby further certify
that the Notes are being transferred to a person that the Transferor reasonably
believes is purchasing the Notes for its own account, or for one or more
accounts with respect to which such Person exercises sole investment discretion,
and such Person and each such account is a "qualified institutional buyer"
within the meaning of Rule 144A and the Notes have been transferred in a
transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States.

                  We understand that this certificate is required in connection
with certain securities laws of the United States. In connection therewith, if
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate to any interested party in such proceeding. This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuer and Goldman, Sachs & Co., Lehman Brothers Inc., J.P.
Morgan Securities Inc., Morgan, Stanley & Co. Incorporated, BA Securities, Inc.
and Dillon, Read & Co. Inc. as initial purchasers of the Notes.

                                      B-1
<PAGE>

Dated:                                            [Insert Name of Transferor]

                                                  By:___________________________
                                                     Name:
                                                     Title:

                                                     (If the registered owner is
                                                     a corporation, partnership
                                                     or fiduciary, the title of
                                                     the Person signing on
                                                     behalf of such registered
                                                     owner must be stated.)
                                      B-2
<PAGE>

                                                                       ANNEX C-1

                FORM OF CERTIFICATION TO BE GIVEN BY HOLDERS OF
                BENEFICIAL INTEREST IN A TEMPORARY REGULATION S
                     GLOBAL SECURITY TO EUROCLEAR OR CEDEL

                        OWNER SECURITIES CERTIFICATION

[MORGAN GUARANTY TRUST COMPANY
   OF NEW YORK, BRUSSELS OFFICE,
   as Operator of the Euroclear
   Clearance System] [or] [CEDEL BANK,
   SOCIETE ANONYME]

                       Re:      Levi Strauss & Co.
                                [6.80%] [or] [7.00%] Notes
                                due November 1, 200[3] [or]  [6] (the "Notes")
                                ----------------------------------------------

                  Reference is hereby made to the Indenture, dated as of
November 6, 1996 (the "Indenture"), between Levi Strauss & Co., as Issuer, and
Citibank, N.A., as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

                  This certificate relates to U.S.$______ aggregate principal
amount of Notes which are evidenced by the Temporary Regulation S Global
Security (CUSIP No.___) and held with the U.S. Depository through Euroclear or
CEDEL or both in the name of [insert name of holder] (the "Holder").

                  In respect of such Notes, the Holder does hereby certify that
as of the date hereof, the above-captioned Notes are beneficially owned by
non-U.S. Persons and are not held for purposes of resale directly or indirectly
to a U.S. Person or to a person within the United States or its possessions.

                  As used herein, "United States" means the United States of
America, its territories and possessions, any state of the United States, and
the District of Columbia. As used herein, U.S. Person has the meaning assigned
to it in Rule 902 under the Securities Act of 1933, as amended.

                  We undertake to advise you immediately by tested telex on or
prior to the date on which you intend to submit your certification relating to
the Notes held by you for our account in accordance with your operating
procedures if any applicable statement herein is not correct on such date, and
in the absence of any such notification it may be assumed that this
certification applies as of such date.

                  We understand that this certification is required in
connection with certain securities laws in the United States. If administrative
or legal proceedings are commenced or threatened in connection with which this
certification is or would be relevant, we irrevocably authorize you to produce
this certification or a copy thereof to any interested party in such
proceedings.

                                     C-1-1
<PAGE>

This certificate and the statements contained herein are made for your benefit
and the benefit of the Issuer and Goldman, Sachs & Co., Lehman Brothers Inc.,
J.P. Morgan Securities Inc., Morgan, Stanley & Co. Incorporated, BA Securities,
Inc. and Dillon, Read & Co. Inc. as the initial purchasers of the Notes.

Date: __________________, 199_*

                                        _______________________________________
                                        [Name of Person Making Certification]

___________________
*    To be dated no earlier than 15 days prior to the transfer or exchange date
     to which the certification relates.

                                     C-1-2
<PAGE>

                                                                       ANNEX C-2

                       FORM OF CERTIFICATION TO BE GIVEN
                   BY THE EUROCLEAR OPERATOR OR CEDEL BANK,
                                SOCIETE ANONYME

                      DEPOSITORY SECURITIES CERTIFICATION

Citibank, N.A., as Trustee
111 Wall Street, 5th Floor
New York, New York 10043

                       Re:      Levi Strauss & Co.
                                [6.80%] [or] [7.00%] Notes
                                due November 1, 200[3] [or] [6] (the "Notes")
                                ---------------------------------------------

                  Reference is hereby made to the Indenture, dated as of
November 6, 1996 (the "Indenture"), between Levi Strauss & Co., as Issuer, and
Citibank, N.A., as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

                  This is to certify that, based solely on certifications we
have received in writing, by tested telex or by electronic transmission from
member organizations appearing in our records as persons being entitled to a
portion of the principal amount set forth below (our "Member Organizations")
substantially to the effect set forth in the Indenture, as of the date hereof,
$__________ aggregate principal amount of the above-captioned Notes is
beneficially owned by non-U.S. Persons and are not held for purposes of resale
directly or indirectly to a U.S. Person or to a person within the United States
or its possessions.

                  As used herein, "United States" means the United States of
America, its territories and possessions, any state of the United States, and
the District of Columbia. As used herein, U.S. Person has the meaning assigned
to it in Rule 902 under the Securities Act of 1933, as amended.

                  We further certify (i) that we are not making available
herewith for exchange any portion of the Temporary Regulation S Global Security
excepted in such certifications and (ii) that as of the date hereof we have not
received any notification from any of our Member Organizations to the effect
that the statements made by such Member Organizations with respect to any
portion of the part submitted herewith for exchange are no longer true and
cannot be relied upon as of the date hereof.

                  We understand that this certification is required in
connection with certain securities laws of the United States. If administrative
or legal proceedings are commenced or threatened in connection with which this
certification is or would be relevant, we irrevocably authorize you to produce
this certification or a copy thereof to any interested party in such
proceedings. This certificate and the statements contained herein are made for
your benefit and the benefit of the Issuer and Goldman, Sachs & Co., Lehman
Brothers Inc., J.P. Morgan Securities Inc., Morgan, Stanley & Co. Incorporated,
BA Securities, Inc. and Dillon, Read & Co. Inc. as the initial purchasers of the
Notes.

                                     C-2-1
<PAGE>

Date: _____________, 199_

                                         By:___________________________________
                                            [MORGAN GUARANTY TRUST COMPANY OF
                                            NEW YORK, BRUSSELS OFFICE, as
                                            Operator of the Euroclear Clearance
                                            System] [or] [CEDEL BANK, SOCIETE
                                            ANONYME]

                                     C-2-2
<PAGE>

                                                                       ANNEX C-3

                     FORM OF CERTIFICATION TO BE GIVEN BY
                    TRANSFEREE OF BENEFICIAL INTEREST IN A
                    TEMPORARY REGULATION S GLOBAL SECURITY
                          AFTER THE RESTRICTED PERIOD

                      TRANSFEREE SECURITIES CERTIFICATION

[MORGAN GUARANTY TRUST COMPANY
   OF NEW YORK, BRUSSELS OFFICE,
   as Operator of the Euroclear
   Clearance system] [or] [CEDEL BANK,
   SOCIETE ANONYME]

                       Re:      Levi Strauss & Co.
                                [6.80%] [or] [7.00%] Notes
                                due November 1, 200[3] [or] [6] (the "Notes")
                                ---------------------------------------------

                  Reference is hereby made to the Indenture, dated as of
November 6, 1996 (the "Indenture"), between Levi Strauss & Co., as Issuer, and
Citibank, N.A., as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

                  For purposes of acquiring a beneficial interest in the
Temporary Regulation S Global Security, the undersigned certifies that it is not
a U.S. Person as defined by Regulation S under the Securities Act of 1933, as
amended.

                  We undertake to advise you promptly by tested telex on or
prior to the date on which you intend to submit your certification relating to
the Notes held by you in which we intend to acquire a beneficial interest in
accordance with your operating procedures if any applicable statement herein is
not correct on such date, and in the absence of any such notification it may be
assumed that this certification applies as of such date.

                  We understand that this certificate is required in connection
with certain securities laws of the United States. In connection therewith, if
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate to any interested party in such proceeding. This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuer and Goldman, Sachs & Co., Lehman Brothers Inc., J.P.
Morgan Securities Inc., Morgan, Stanley & Co. Incorporated, BA Securities, Inc.
and Dillon, Read & Co. Inc. as initial purchasers of the Notes.

Dated: __________, ____

                                            By:_______________________________
                                               As, or as agent for, the
                                               beneficial acquiror of the Notes
                                               to which this certificate
                                               relates.

                                     C-3-1
<PAGE>

                                                                       ANNEX D-1

                        FORM OF TRANSFER CERTIFICATE--
                       NON-GLOBAL RESTRICTED SECURITY TO
                          RESTRICTED GLOBAL SECURITY

                      RESTRICTED GLOBAL NOTE CERTIFICATE
                 (for transfers pursuant to Section 3.5(b)(6)
                               of the Indenture)

Citibank, N.A., as Trustee
111 Wall Street, 5th Floor
New York, New York 10043

                       Re:      Levi Strauss& Co.
                                [6.80%] [or] [7.00%] Notes
                                due November 1. 200[3] [or] 200[6] (the "Notes")
                                ------------------------------------------------

                  Reference is hereby made to the Indenture, dated as of
November 6, 1996 (the "Indenture"), between Levi Strauss & Co., as Issuer, and
Citibank, N.A., as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

                  This certificate relates to $__________ aggregate principal
amount of Notes held in definitive form (CUSIP No._____) by [insert name of
transferor] (the "Transferor"). The Transferor has requested a transfer of such
Notes to a Person that will take delivery in the form of an equal principal
amount of Notes evidenced by the Restricted Global Security (CUSIP No. _______).

                  In connection with such request and in respect of such Notes,
the Transferor does hereby certify that such transfer has been effected pursuant
to and in accordance with Rule 144A under the United States Securities Act of
1933, as amended, and accordingly the Transferor does hereby further certify
that the Notes are being transferred to a Person that the Transferor reasonably
believes is purchasing the Notes for its own account, or for one or more
accounts with respect to which such Person exercises sole investment discretion,
and such Person and each such account is a "qualified institutional buyer"
within the meaning of Rule 144A and the Notes have been transferred in a
transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States.

                  We understand that this certificate is required in connection
with certain securities laws of the United States. In connection therewith, if
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate to any interested party in such proceedings.
This certificate and the statements contained herein are made for your benefit
and the benefit of the Issuer and Goldman, Sachs & Co., Lehman Brothers Inc.,
J.P. Morgan Securities Inc., Morgan, Stanley & Co. Incorporated, BA Securities,
Inc. and Dillon, Read & Co. Inc. as the initial purchasers of the Notes.

                                     D-1-1
<PAGE>

Dated:                                     [Insert Name of Transferor]

                                           By:_______________________________
                                              Name:
                                              Title:

                                     D-2-2
<PAGE>

                                                                       ANNEX D-2

                       FORM OF CERTIFICATE -- NON-GLOBAL
                  RESTRICTED SECURITY TO REGULATION S GLOBAL
                      SECURITY OR TEMPORARY REGULATION S
                                GLOBAL SECURITY

                     REGULATION S GLOBAL NOTE CERTIFICATE
                 (for transfers pursuant to Section 3.5(b)(6)
                               of the Indenture)

Citibank, N.A., as Trustee
III Wall Street, 5th Floor
New York, New York 10043

                       Re:      Levi Strauss & Co.
                                [6.80%1[or][7.00%] Notes
                                due November 1, 200[3] [or] 200[6] (the "Notes")
                                ------------------------------------------------

                  Reference is hereby made to the Indenture, dated as of
November 6, 1996 (the "Indenture"), between Levi Strauss & Co., as Issuer, and
Citibank, N.A., as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.

                  This certificate relates to $_______ aggregate principal
amount of Notes held in definitive form (CUSIP No.____) by [insert name of
transferor] (the "Transferor"). The Transferor has requested an exchange or
transfer of such Notes to a Person that will take delivery in the form of an
equal principal amount of Notes evidenced by the Regulation S Global Security or
the Temporary Regulation S Global Security (CUSIP No.____).

                  In connection with such request and in respect of such Notes,
the Transferor does hereby certify that such transfer has been effected pursuant
to and in accordance with (a) Rule 903 or Rule 904 under the Securities Act of
1933, as amended (the "Act"), or (b) Rule 144 under the Act, and accordingly the
Transferor does hereby further certify that:

                  (1)  if the transfer has been effected pursuant to Rule 903 or
                       Rule 904:

                       (A)   the offer of the Notes was not made to a person in
                             the United States;

                       (B)   either:

                             (i)   at the time the buy order was originated, the
                                   transferee was outside the United States or
                                   the Transferor and any person acting on its
                                   behalf reasonably believed that the
                                   transferee was outside the United States, or

                             (ii)  the transaction was executed in, on or
                                   through the facilities of a designated
                                   offshore securities market and neither the
                                   Transferor nor any person acting on its
                                   behalf knows that

                                     D-2-1
<PAGE>

                                   the transaction was pre-arranged with a buyer
                                   in the United States;

                       (C)   no directed selling efforts have been made in
                             contravention of the requirements of Rule 903(b) or
                             904(b) of Regulation S, as applicable;

                       (D)   the transaction is not part of a plan or scheme to
                             evade the registration requirements of the Act; and

                       (E)   if such transfer is to occur during the Restricted
                             Period, upon completion of the transaction, the
                             beneficial interest being transferred as described
                             above was held with the Depository through
                             [Euroclear] [CEDEL]; or

                  (2)  if the transfer has been effected pursuant to Rule 144:

                       (A)   more than two years has elapsed since the date of
                             the closing of the initial placement of the Notes
                             pursuant to the Purchase Agreement, dated October
                             31, 1996, between the Issuer and the
                             representatives of the several purchasers named
                             therein; and

                       (B)   the Notes have been transferred in a transaction
                             permitted by Rule 144 and made in accordance with
                             any applicable securities laws of any state of the
                             United States.

                  We understand that this certificate is required in connection
with certain securities laws of the United States. In connection therewith, if
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate to any interested party in such proceedings This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuer and Goldman, Sachs & Co., Lehman Brothers Inc., J.P.
Morgan Securities Inc., Morgan, Stanley & Co. Incorporated, BA Securities, Inc.
and Dillon, Read & Co. Inc. as initial purchasers of the Notes.

Dated: __________, ____                           [Insert Name of Transferor]

                                                  By:___________________________
                                                     Name:
                                                     Title:

                                     D-2-2<PAGE>

                                                                     EXHIBIT 4.2

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

                            FISCAL AGENCY AGREEMENT

                                    Between

                              LEVI STRAUSS & CO.
                                    Issuer

                                      and

                                CITIBANK, N.A.
                                 Fiscal Agent

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

                         Dated as of November 22, 1996

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

        (Y)20,000,000,000 4.25 per cent. Bonds due November 22, 2016

--------------------------------------------------------------------------------
<PAGE>

                              TABLE OF CONTENTS
                              -----------------

<TABLE>
<CAPTION>
                                                                                                            Page
                                                                                                            ----
<S>                                                                                                         <C>
Parties........................................................................................................1
1.       Securities............................................................................................3
2.       Fiscal Agent; Other Agents............................................................................4
3.       Authorization and Authentication......................................................................4
4.       Payment and Cancellation..............................................................................6
            (a)       Payment..................................................................................6
            (b)       Certification............................................................................7
            (c)       Withholding..............................................................................8
            (d)       Cancellation.............................................................................8
5.       Exchange of Securities................................................................................8
6.       Redemption............................................................................................9
7.       Delivery of Certain Information.......................................................................9
8.       Conditions of Fiscal Agent's Obligations.............................................................10
            (a)       Compensation and Indemnity..............................................................11
            (b)       Agency..................................................................................11
            (c)       Advice of Counsel.......................................................................11
            (d)       Reliance................................................................................11
            (e)       Interest in Securities, etc.............................................................11
            (f)       Non-Liability for Interest..............................................................12
            (g)       Certifications..........................................................................12
            (h)       No Implied Obligations..................................................................12
9.       Resignation and Appointment of Successor.............................................................12
            (a)       Fiscal Agent and Paying Agent...........................................................12
            (b)       Resignation.............................................................................12
            (c)       Successors..............................................................................13
            (d)       Acknowledgement.........................................................................13
            (e)       Merger, Consolidation, etc..............................................................14
10.      Payment of Taxes.....................................................................................14
11.      Meetings and Amendments..............................................................................14
            (a)       Calling of Meeting, Notice and Quorum...................................................14
            (b)       Approval................................................................................15
            (c)       Binding Nature of Amendments, Notices, Notations, etc...................................16
</TABLE>

<PAGE>

<TABLE>

<S>                                                                                                          <C>
            (d)       "Outstanding" Defined...................................................................16
12.      Governing Law........................................................................................17
13.      Notices..............................................................................................17
14.      Consent to Service; Jurisdiction.....................................................................17
15.      Headings.............................................................................................18
16.      Currency Rate Indemnity..............................................................................18
17.      Terms and Conditions.................................................................................18
18.      Counterparts.........................................................................................18
</TABLE>

EXHIBIT A             Form of Temporary Global Security
EXHIBIT B             Form of Permanent Global Security
EXHIBIT C             Form of Definitive Security
EXHIBIT D             Terms and Conditions
EXHIBIT E             Form of Certificate to be Given by Euroclear or Cedel
EXHIBIT F             Form of Certificate to be Given by Beneficial Owners

                                     -ii-
<PAGE>

          FISCAL AGENCY AGREEMENT, dated as of November 22, 1996, between LEVI
STRAUSS & CO., a corporation duly organized under the laws of Delaware (the
"Issuer"), and CITIBANK, N.A. (London Branch), as Fiscal Agent.

          1.   Securities.
               ----------

          The Issuer has, by a Purchase Agreement, dated November 21, 1996,
between the Issuer and Goldman Sachs International (the "Purchase Agreement"),
agreed to issue (Yen)20,000,000,000 aggregate principal amount of its 4.25 per
cent.  Bonds due November 22, 2016 (the "Securities").

          The Securities offered shall be initially represented by a single
temporary global security (the "Temporary Global Security") issued in fully
registered form without interest coupons, substantially in the form set forth in
Exhibit A hereto.  The Temporary Global Security shall be executed by the Issuer
and delivered to the Fiscal Agent, and the Fiscal Agent shall, upon order of the
Issuer, authenticate such Temporary Global Security.  Such Temporary Global
Security shall be registered in the name of National City Nominees Limited or
its nominee and deposited with Citibank, N.A. (London Branch), as common
depositary (the "Common Depositary") on behalf of Morgan Guaranty Trust Company
of New York (Brussels office) as operator of the Euroclear System ("Euroclear")
and Cedel Bank, societe anonyme ("Cedel") for credit to the respective accounts
of Euroclear or Cedel.  The beneficial interests in the Temporary Global Note
will be exchangeable for beneficial interests in a permanent global Security
(the "Permanent Global Security"), in denominations of (Yen)l,000,000,000 and
integral multiples thereof, substantially in the form set forth in Exhibit B
hereto, on or after the Exchange Date upon and to the extent that the
certification requirements set forth below have been complied with.  As used
herein, the term "Exchange Date" means the date that is 40 days after the later
of (i) the day that Goldman Sachs International, as initial purchaser of the
Securities, advises the Issuer and the Fiscal Agent is the day on which the
Securities are first offered to persons other than distributors (as defined in
Regulation S under the Securities Act of 1933, as amended (the "Securities
Act")) in reliance on Regulation S and (ii) the closing of the offering of the
Securities under the Purchase Agreement, as notified to the Fiscal Agent and the
Issuer in writing by Goldman Sachs International.  The Permanent Global Security
shall be executed by the Issuer and delivered to the Fiscal Agent, and the
Fiscal Agent shall, upon order of the Issuer, authenticate such Permanent Global
Security.  The Permanent Global Security shall be registered in the name of
National City Nominees Limited and shall be deposited with the Common Depositary
for the benefit of the operator of Euroclear and Cedel to be held for the
account of the Issuer until the Temporary Global Security shall be exchanged for
the Permanent Global Security in the manner set forth below.  The Permanent
Global Security will be exchangeable, in whole but not in part, but only as
provided in Section 3(g) below, for definitive Securities in minimum
denominations of (Yen)1,000,000,000 (the "Definitive Securities") issuable in
registered form, without coupons, in such name or names as Euroclear or Cedel
shall direct, all substantially in the form set forth in Exhibit C hereto.  The
term "Securities" as used herein includes the Temporary Global Security, the
Permanent Global Security and the Definitive Securities.
<PAGE>

          2.   Fiscal Agent; Other Agents.
               --------------------------

          The Issuer hereby appoints Citibank, N.A. (London Branch) having a
corporate trust office ("Principal Office") at 336 Strand, London WC2R IHB, in
England, as fiscal agent and principal paying agent of the Issuer in respect of
the Securities upon the terms and subject to the conditions herein set forth,
and Citibank, N.A. (London Branch) hereby accepts such appointment.  Citibank,
N.A. (London Branch), and any successor or successors as such fiscal agent
qualified and appointed in accordance with Section 9 hereof, are herein called
the "Fiscal Agent".  The Fiscal Agent shall have the powers and authority
granted to and conferred upon it in the Securities and hereby and such further
powers and authority to act on behalf of the Issuer as may be mutually agreed
upon by the Issuer and the Fiscal Agent.  All of the terms and provisions with
respect to such powers and authority contained in the Securities are subject to
and governed by the terms and provisions hereof.

          The Issuer may, at its discretion, appoint one or more other or
additional agents (each of the principal paying agent, each paying agent
appointed herein and each such other or additional paying agent, (a "Paying
Agent" or "Paying Agents") for the payment (subject to applicable laws and
regulations) of the principal of (and premium, if any) and any interest on the
Securities, and in addition to the appointment contemplated by Section 3(i), one
or more agents (each transfer agent appointed herein and each such other or
additional transfer agent, a "Transfer Agent" or "Transfer Agents") for the
exchange of Securities, at such place or places as the Issuer may determine.
The Issuer shall promptly notify the Fiscal Agent of the name and address of
each Paying Agent and Transfer Agent appointed by it and of the country or
countries in which a Paying Agent or Transfer Agent may act in that capacity,
and will notify the Fiscal Agent of the resignation or termination of any Paying
Agent or Transfer Agent.  Subject to the provisions of Section 9(c) hereof, the
Issuer may vary or terminate the appointment of any such Paying Agent or
Transfer Agent at any time and from time to time upon giving not less than
ninety days' notice to such Paying Agent or Transfer Agent, as the case may be,
and to the Fiscal Agent.

          The Issuer shall cause notice of any resignation, termination or
appointment of any Paying Agent or Transfer Agent or of the Fiscal Agent and of
any change in the office through which any such Agent will act to be given to
the holders at their addresses as they appear in the Security Register.

          3.   Authorization and Authentication.
               --------------------------------

          (a)  The Securities shall be executed on behalf of the Issuer by any
two of the following persons: its Chairman of the Board, its Chief Executive
Officer, its President or any of its Vice Presidents, its Treasurer or an
Assistant Treasurer (the "Authorized Officers"), under a facsimile of its
corporate seal reproduced thereon attested by its Secretary or one of its
Assistant Secretaries.  Any such signature may be manual or facsimile.
Securities bearing the manual or facsimile signature of individuals who were at
any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such officers, or any one of them, shall have ceased, for
any reason, to hold such offices prior to the authentication and delivery of the
Securities or did not hold such offices at the date of the Securities.

                                      -4-
<PAGE>

          (b)  The Issuer shall execute and deliver, on or prior to November 22,
1996 (the "Closing Date") the Temporary Global Security and the Permanent Global
Security to the Fiscal Agent, and the Fiscal Agent shall, upon the order of the
Issuer signed by an executive officer of the Issuer, authenticate the Temporary
Global Security and the Permanent Global Security.  The Temporary Global
Security and the Permanent Global Security will be deposited with the Common
Depositary, to be held for credit to the respective accounts of Euroclear or
Cedel (or to such accounts as they may direct), except as otherwise provided in
Section 1 hereof in the case of the Permanent Global Security being held for the
account of the Issuer until the exchange of the Temporary Global Security.

          (c)  On or after the Exchange Date pursuant to instructions delivered
by the Issuer to the Common Depositary on the date hereof, the Temporary Global
Security may be exchanged as a whole or in part for the Permanent Global
Security without charge, but only upon presentation to the Common Depositary of
a certificate or certificates in  substantially the form set forth in Exhibit E
hereto in writing, by tested telex or electronic transmission, from Euroclear or
Cedel and upon presentation to Euroclear or Cedel of a certificate or
certificates in substantially the form set forth in Exhibit F hereto in writing,
by tested telex or electronic transmission, from the beneficial owners of the
Temporary Global Security or portions thereof being exchanged.

          (d)  [Reserved]

          (e)  Upon any such exchange of a portion of the Temporary Global
Security for the Permanent Global Security, the Temporary Global Security shall
be endorsed by the Fiscal Agent to reflect the reduction of the principal amount
evidenced thereby, whereupon its remaining principal amount shall be reduced for
all purposes by the amount so exchanged, and the Permanent Global Security shall
be endorsed to reflect the increase of the principal amount evidenced thereby,
whereupon its principal amount shall be increased for all purposes by the amount
so exchanged.  Until so exchanged in full, the Temporary Global Security shall
in all respects be entitled to the same benefits under this Agreement as the
Permanent Global Security authenticated and delivered hereunder.

          (f)  Promptly after the Temporary Global Security has been fully
exchanged, it shall be surrendered by the Common Depositary to the Fiscal Agent,
as the Issuer's agent, for cancellation.

          (g)  The Permanent Global Security is exchangeable, in whole but not
in part, for a Definitive Security or Securities without charge if the Permanent
Global Security is held on behalf of Euroclear or Cedel or an alternative
clearing system and Euroclear or Cedel or such clearing system is closed for
business for a continuous period of 14 days (other than by reason of holidays,
statutory or otherwise) or announces an intention permanently to cease business
or does in fact do so. Thereupon the holder of a beneficial interest in the
Permanent Global Security may give notice to the Fiscal Agent of its intention
to exchange the Permanent Global Security for Definitive Securities on a day
falling not less than 60 days after the day on which the notice requiring an
exchange is given and on which banks are open for business in the city of
London.

                                      -5-
<PAGE>

          (h)  Upon the exchange of a Permanent Global Security for Definitive
Securities as contemplated by clause (g) of this Section 3, the Permanent Global
Security shall be surrendered promptly by the Common Depositary to the Fiscal
Agent for cancellation.  Any exchange of an interest in a Permanent Global
Security for Definitive Securities pursuant to this Section 3 shall be made free
of charge to the beneficial owners of the Permanent Global Security.

          (i)  The Issuer shall cause to be kept at the Principal Office of the
Fiscal Agent a register (the register maintained in such office and in any other
office or agency for such purpose being herein sometimes referred to as the
"Security Register") in which, subject to such reasonable regulations as it may
prescribe, the Issuer shall provide for the registration and transfer of
Securities.  The Fiscal Agent is hereby appointed "Security Registrar" for the
purpose of registering and transferring Securities as herein provided.  Any
reference herein to the Transfer Agent or Agents shall include the Security
Registrar.

          (j)  The Fiscal Agent may, with the consent of the Issuer, appoint by
an instrument or instruments in writing one or more agents (which may include
itself) for the authentication of the Securities and, with such consent, vary or
terminate any such appointment upon written notice and approve any change in the
office through which any authentication agent acts.  The Issuer (by written
notice to the Fiscal Agent and the authentication agent whose appointment is to
be terminated) may also terminate any such appointment at any time.  The Fiscal
Agent hereby agrees to solicit written acceptances from the entities concerned
(in form and substance satisfactory to the Issuer) of any such appointments.  In
its acceptance of such appointment, each such authentication agent shall agree
to act as an authentication agent pursuant to the terms and conditions of this
Agreement.

          4.   Payment and Cancellation.
               ------------------------

          (a)  Payment.  Subject to the following provisions, the Issuer shall
               -------
provide to the Fiscal Agent at its head office in Tokyo, Japan on or prior to
the applicable due date for payment of the Securities, funds required to make
payment of the principal of and interest on the Securities, at the times, in the
amounts, in such coin or currency and for the purposes set forth herein and in
the text of the Securities; and the Issuer hereby authorizes and directs the
Fiscal Agent from funds so paid to it to make or cause to be made payment of the
principal of (and premium, if any) and interest on the Securities as set forth
herein and in the text of the Securities.  The Fiscal Agent will arrange
directly with the Paying Agents (if applicable) for the payment, and the Fiscal
Agent will make payment, in the manner provided herein and in the Securities,
from funds furnished by the Issuer, of the principal of (and premium, if any)
and interest on the Securities.  Any such Paying Agent shall provide to the
Fiscal Agent, as promptly as practicable after the Interest Payment Date (as
defined in the text of the Securities) or maturity date or redemption date a
certificate as to the Securities so paid by the Paying Agent.  Notwithstanding
the foregoing, the Issuer may provide directly to a Paying Agent funds for the
payment of the principal thereof (and premium, if any) and interest, payable
thereon under an agreement with respect to such funds containing substantially
the same terms and conditions set forth in this Section 4(a) and in Section 8(b)
hereof; and the Fiscal Agent shall have no responsibility with respect to any
funds so provided by the Issuer to any such Paying

                                      -6-
<PAGE>

Agent. The Issuer irrevocably confirms that funds will be deposited with an
account specified by the Fiscal Agent in such a manner so that the Fiscal Agent
will be able to make timely payments in accordance with the provisions of this
Agreement. If the Fiscal Agent or any Paying Agent has not for any reason
received on the relevant payment date sufficient amounts to satisfy all claims
in respect of payments then due on the Securities, the Fiscal Agent and any
Paying Agent shall not be required to make payment of any amount due on any
Security until the Fiscal Agent or such Paying Agent has received or has had
made available to it the full amount of the monies then due and payable in
respect of such Securities. Nevertheless, subject to the foregoing, if the
Fiscal Agent or any Paying Agent is satisfied that it will receive such full
amount later, it shall be entitled to pay principal of or interest on the
Securities due in accordance with their terms.

          The principal of (and premium, if any) and interest on the Securities
shall be payable in Japanese Yen.  Payment of principal shall be made to the
registered owner against surrender of Securities, subject to any applicable laws
and regulations, at the office of any Paying Agent.  Payment of any installment
of interest on a Security shall be made to the person in whose name such
Security is registered at the close of business on April 15 and October 15
(whether or not such days are business days) in the year of the relevant
interest payment date (the "Record Date"), in accordance with such information
furnished to the Fiscal Agent by the Registrar promptly after each Record Date.
Payments of principal (and premium, if any) and interest will be made, subject
to any applicable laws and regulations, by transfer to a Japanese Yen account
maintained by the payee with a bank in Tokyo.  Each registered owner shall give
notice of such Japanese Yen account, in the case of principal payments, to the
relevant Paying Agent not less than 15 days prior to the date of the payment to
be received, or, in the case of interest payments, to the Registrar not later
than the Record Date relating to the payment to be received, provided that if
such notice has been given to the Registrar and the applicable Paying Agent,
such registered owner shall give further notice to the Registrar and Paying
Agent only upon a change of any details as to such account.  If a registered
owner fails to give such notice prior to the time limit specified above,
payments of principal (and premium, if any) and interest will be made, subject
to any applicable laws and regulations, by a Japanese Yen check drawn on a bank
in Tokyo unless the relevant Paying Agent or (as the case may be) the Registrar
at its discretion accepts such notice given after the time limit specified
above.  Payments to non-residents of Japan shall be made to a non-resident
Japanese Yen account maintained by the payee with an authorized foreign exchange
bank in Tokyo or (as the case may be) by a Japanese Yen check drawn on an
authorized foreign exchange bank in Tokyo, subject to each case to any
applicable laws and regulations.

          (b)  Certification.  The Issuer shall have the right reasonably to
               -------------
require a holder of a Security, as a condition of payment of the principal of
(and premium, if any) or any interest on such Security, to present at such place
as the Issuer shall designate a certificate in such form as the Issuer may from
time to time prescribe to enable the Issuer to determine its duties and
liabilities with respect to (i) any taxes, assessments or governmental charges
which the Issuer, the Fiscal Agent or any withholding agent may be required to
deduct or withhold from payments in respect of such Security under any present
or future law of any jurisdiction or any regulation of any taxing authority
thereof and (ii) any reporting or other requirements under such laws or
regulations.  To the extent not otherwise prohibited by applicable laws and

                                      -7-
<PAGE>

regulations, the Issuer shall be entitled to determine its duties and
liabilities with respect to such deduction, withholding, reporting or other
requirements on the basis of information contained in such certificate, or, if
no certificate shall be presented, on the basis of any presumption created by
any such law or regulation, and shall be entitled to act in accordance with such
determination.

          The Fiscal Agent and each such withholding agent shall retain each
certificate received by it and relating to the Securities for so long as any of
the Securities are outstanding and in no event for less than four calendar years
after its receipt, and for such additional period thereafter as such certificate
may become material in the administration of applicable tax laws.

          (c) Withholding.  At least 10 days prior to the first date of payment
              -----------
of interest on the Securities and at least 10 days prior to each date, if any,
of payment of principal (and premium, if any) or interest thereafter if there
has been any change with respect to the matters set forth in the below-mentioned
certificate, the Issuer will furnish the Fiscal Agent and each other Paying
Agent with a certificate of Authorized Officers instructing the Fiscal Agent and
each other Paying Agent whether such payment of principal of (and premium, if
any) or any interest on such Securities shall be made without deduction or
withholding for or on account of any tax, assessment or other governmental
charge.  If any such deduction or withholding shall be required, then such
certificate shall specify, by country, the amount, if any, required to be
withheld on such payment to holders of such Securities, and the Issuer shall
provide to the Fiscal Agent on the applicable payment date the funds required to
make such payment net of any amounts required to be withheld or deducted as set
forth in such certificate.  The Issuer agrees to indemnify the Fiscal Agent and
each other Paying Agent for, and to hold them harmless against, any loss,
liability or expense reasonably incurred without negligence or bad faith on
their part arising out of or in connection with actions taken or omitted by them
in reliance on any certificate furnished pursuant hereto.

          (d) Cancellation.  All Securities delivered to the Fiscal Agent (or
              ------------
any other Agent appointed by the Issuer pursuant to Section 2 hereof) by a
holder for payment, redemption or exchange, or by the Issuer for cancellation,
or by the Common Depositary in accordance with Section 3 hereof, shall be
canceled and destroyed by the Fiscal Agent (or, if delivered to another Agent
appointed by the Issuer pursuant to Section 2 hereof, by such other Agent, which
shall thereupon furnish certificates of such destruction to the Fiscal Agent).
Upon such cancellation and destruction (or upon receipt of such certificates
from such other Agent), the Fiscal Agent shall furnish certificates of such
destruction to the Issuer.

          5.  Exchange of Securities.
              ----------------------

          The Fiscal Agent, or its agent duly authorized by the Fiscal Agent, is
hereby authorized from time to time in accordance with the provisions of the
Securities and of this Section to authenticate and deliver:

          (i) Securities in exchange for or in lieu of Securities of like tenor
     and of like form which become mutilated, destroyed, stolen or lost; and

                                      -8-
<PAGE>

          (ii) Upon partial redemption, Securities of authorized denominations
     of a like tenor and form as the Securities so surrendered in exchange for
     the unredeemed portion of any Securities repaid in part only.

          Securities shall be dated the date from which interest on the
Securities first begins to accrue.  Each Security authenticated and delivered
upon any exchange for or in lieu of the whole or any part of any Security shall
carry all the rights, if any, to interest accrued and unpaid and to accrue which
were carried by the whole or such part of such Security.

          6.   Redemption.
               ----------

          All notices of redemption of the Securities shall be made in the name
and at the expense of the Issuer and shall be given in accordance with the
provisions applicable thereto set forth in the text of the Securities.

          Whenever less than all the Securities at any time Outstanding are to
be redeemed at the option of the Issuer, the particular Securities to be
redeemed shall be selected not more than 60 days prior to the redemption date by
the Fiscal Agent from the Outstanding Securities not previously called for
redemption, by prorating, as nearly as may be practicable, the principal amount
of Securities to be redeemed.  In any proration pursuant to this Section, the
Fiscal Agent shall make such adjustments, reallocations and eliminations as it
shall deem proper to the end that the principal amount of Securities so prorated
shall be (Yen)1,000,000,000 or a multiple thereof, by increasing or decreasing
or eliminating the amount which would be allocable to any holder on the basis of
exact proportion by an amount not exceeding (Yen)1,000,000,000.  The Fiscal
Agent in its discretion may determine the particular Securities (if there are
more than one) registered in the name of any holder which are to be redeemed, in
whole or in part.  Upon any partial redemption of a Security, the Issuer will
issue and the Fiscal Agent shall authenticate and deliver in exchange therefor
one or more Securities, of any authorized denomination as requested by the
holder, in aggregate principal amount equal to the unredeemed portion of the
principal of such Security.

          7.   Delivery of Certain Information.
               -------------------------------

          (a)  The Issuer shall maintain a system of accounting established and
administered in accordance with sound business practices to permit preparation
of financial statements in conformity with GAAP (as defined in Condition 7 of
the Terms and Conditions of the Securities).  So long as any Securities are
Outstanding (as defined in Section 11(d) hereof) and subject to the second
sentence of subsection (b) below, the Issuer will furnish or cause to be
furnished to the Fiscal Agent and, upon request of a holder of Securities, the
Fiscal Agent shall furnish to such holder, as soon as available, a copy (in
English):

          (i)  as soon as practicable and in any event within 60 days after the
     end of each of the first three fiscal quarters of the fiscal year of the
     Issuer, a copy of the consolidated balance sheet of the Issuer and its
     Subsidiaries (as defined in Condition 7 of the Terms and Conditions of the
     Securities), as at the end of the period, and the related consolidated
     statements of income and cash flows of the Issuer and its

                                      -9-
<PAGE>

     Subsidiaries for such fiscal quarter and for the fiscal year to date,
     certified by the chief financial officer, treasurer or controller of the
     Issuer as fairly presenting the financial condition of the Issuer and its
     Subsidiaries in all material respects as at the dates indicated and the
     results of their operations and changes in cash flows for the periods
     indicated in accordance with GAAP, except for the absence of footnotes and
     subject to changes resulting from audit and normal year-end adjustment;

          (ii) as soon as practicable and in any event within 90 days after the
     end of each fiscal year of the Issuer, commencing with fiscal year 1996, a
     copy of the consolidated balance sheet of the Issuer and its Subsidiaries
     as at the end of such year and the related consolidated statement of
     income, stockholders' equity and cash flows of the Issuer and its
     Subsidiaries for such fiscal year, accompanied by a report thereon of and a
     letter from Arthur Andersen LLP or other independent public accountants of
     recognized international standing; which report shall be unqualified as to
     going concern and scope of audit and shall state that such consolidated
     financial statements present fairly in all material respects the financial
     position of the Issuer and its Subsidiaries as at the dates indicated and
     the results of operations and cash flows for the periods indicated in
     conformity with GAAP (except as otherwise stated therein) and that the
     examination by such accountants in connection with such consolidated
     financial statements has been made in accordance with generally accepting
     auditing standards;

          (b)  As soon as practicable after the same are available to the
Issuer, the Issuer will deliver to the Fiscal Agent and, upon request of a
holder of Securities, the Fiscal Agent shall furnish to such holder as soon as
available, a copy (in English), of all material financial statements, reports,
notices and proxy statements, if any, sent or made available by the Issuer to
its bondholders generally, of all material regular and periodic reports and
other filings, if any, made by the Issuer with any securities exchange or the
Securities and Exchange Commission, and of all press releases and other
statements made available generally by the Issuer to the public concerning
material developments in the business of the Issuer and its Subsidiaries taken
as a whole. Notwithstanding the foregoing, the Issuer shall have no obligation
under this subsection to deliver to the Fiscal Agent copies of (i) court filings
and related documents, (ii) state securities or "blue sky" filings, (iii)
filings relating to routine business matters such as permits, etc. and (iv)
filings pursuant to the consent decree between the Issuer and the U.S. Federal
Trade Commission dates July 12, 1978. As to any information contained in
materials furnished pursuant to this subsection, the Issuer shall not be
separately required to furnish such information under subsection (a) above, but
the foregoing shall not derogate the obligation of the Issuer to furnish the
information and material described in subsection (a) above at the times
specified therein.

          8.   Conditions of Fiscal Agent's Obligations.
               ----------------------------------------

          The Fiscal Agent accepts it obligations herein set forth upon the
terms and conditions hereof, including the following, to all of which the Issuer
agrees and to all of which the rights of holders from time to time of Securities
are subject:

                                     -10-
<PAGE>

          (a) Compensation and Indemnity.  The Fiscal Agent shall be entitled to
              --------------------------
reasonable compensation as agreed with the Issuer for all services rendered by
it, and the Issuer agrees promptly to pay such compensation and to reimburse the
Fiscal Agent for the reasonable out-of-pocket expenses (including counsel fees)
incurred by it in connection with its services hereunder.  The Issuer also
agrees to indemnify the Fiscal Agent for, and to hold it harmless against, any
loss, liability or expense, incurred without negligence or bad faith, arising
out of or in connection with its acting as Fiscal Agent hereunder, as well as
the reasonable costs and expenses of defending against any claim of liability in
the premises.  The obligations of the Issuer under this Section 8(a) shall
survive payment of all the Securities or the resignation or removal of the
Fiscal Agent.

          (b) Agency. In acting under this Agreement and in connection with the
              ------
Securities, the Fiscal Agent is acting solely as agent of the Issuer and does
not assume any responsibility for the correctness of the recitals in the
Securities (except for the correctness of the statement in its certificate of
authentication thereon) or any obligation or relationship of agency or trust,
for or with any of the owners or holders of the Securities, except that all
funds held by the Fiscal Agent for the payment of principal of (and premium, if
any) and any interest on the Securities shall be held in a segregated account
for such owners or holders, as the case may be, as set forth herein and in the
Securities, and the Fiscal Agent shall have no claim or right of set-off against
funds so held in such segregated account on account of amounts owing to the
Fiscal Agent from the Company; provided, however, that monies held in respect of
                               --------  -------
the Securities remaining unclaimed at the end of two years after the principal
of all the Securities shall have become due and payable (whether at maturity or
otherwise) and monies sufficient therefor shall have been duly made available
for payment shall, together with any interest made available for payment
thereon, be repaid to the Issuer, as provided and in the manner set forth in the
Securities.  Upon such repayment, the aforesaid obligation to maintain a
segregated account shall terminate and all liability of the Fiscal Agent and
Paying Agents with respect to such funds shall thereupon cease.

          (c) Advice of Counsel.  The Fiscal Agent and any Paying Agent or
              -----------------
Transfer Agent appointed by the Issuer pursuant to Section 2 hereof may consult
with their respective counsel or other counsel or professional advisors
satisfactory to them, and the opinion of such counsel or advisors shall be full
and complete authorization and protection in respect of any action taken or
suffered by them hereunder in good faith and without negligence and in
accordance with such opinion.

          (d) Reliance.  The Fiscal Agent and any Paying Agent or Transfer Agent
              --------
appointed by the Issuer shall be protected and shall incur no liability for or
in respect of any action taken or thing suffered by it in reliance upon any
Security, notice, direction, consent, certificate, affidavit, statement, or
other paper or document believed by it, in good faith and without negligence, to
be genuine and to have been passed or signed by the proper parties.

          (e) Interest in Securities, etc.  The Fiscal Agent, any Paying Agent
              ----------------------------
or Transfer Agent appointed by the Issuer pursuant to Section 2 hereof and their
respective officers, directors and employees may become the owners of, or
acquire any interest in, any Securities, with the same rights that they would
have if they were not the Fiscal Agent, such

                                     -11-
<PAGE>

other Paying Agent or Transfer Agent or such person, and may engage or be
interested in any financial or other transaction with the Issuer, and may act
on, or as depository, trustee or agent for, any committee or body of holders of
Securities or other obligations of the Issuer, as freely as if they were not the
Fiscal Agent, such other Paying Agent or Transfer Agent or such person.

          (f) Non-Liability for Interest.  Subject to any agreement between the
              --------------------------
Issuer and the Fiscal Agent to the contrary, the Fiscal Agent shall not be under
any liability for interest on monies at any time received by it pursuant to any
of the provisions of this Agreement or of the Securities.

          (g) Certifications.  Whenever in the administration of this Agreement
              --------------
the Fiscal Agent shall deem it desirable that a matter be proved or established
prior to taking, suffering or omitting any action hereunder, the Fiscal Agent
(unless other evidence be herein specifically prescribed) may, in the absence of
bad faith or negligence on its part, rely upon a certificate signed by any
person authorized by or pursuant to a resolution of the boards of directors of
the Issuer and delivered to the Fiscal Agent.

          (h) No Implied Obligations.  The duties and obligations of the Fiscal
              ----------------------
Agent shall be determined solely by the express provisions of this Agreement,
and the Fiscal Agent shall not be liable except for the performance of such
duties and obligations as are specifically set forth in this Agreement, and no
implied covenants or obligations shall be read into this Agreement against the
Fiscal Agent.

          9.  Resignation and Appointment of Successor.
              ----------------------------------------

          (a) Fiscal Agent and Paying Agent.  The Issuer agrees, for the benefit
              -----------------------------
of the holders from time to time of the Securities, that there shall at all
times be a Fiscal Agent hereunder which shall be a bank or trust company in good
standing and having an established place of business in London, and authorized
under such laws to exercise corporate trust powers, and, to the extent required
by the provisions of the Securities, if any, a Paying Agent outside the United
States for payment of principal of (and premium, if any) and any interest on
such Securities, until all the Securities authenticated and delivered hereunder
(i) shall have been delivered to the Fiscal Agent for cancellation or (ii)
become due and payable and monies sufficient to pay the principal of (and
premium, if any) and any interest on the Securities shall have been made
available for payment and either paid or returned to the Issuer as provided
herein and in such Securities.

          (b) Resignation.  The Fiscal Agent may at any time resign by giving
              -----------
written notice to the Issuer of such intention on its part, specifying the date
on which its desired resignation shall become effective, provided that such date
shall not be less than two (2) months from the date on which such notice is
given, unless the Issuer agrees to accept shorter notice.  The Fiscal Agent
hereunder may be removed at any time by the filing with it of an instrument in
writing signed on behalf of the Issuer and specifying such removal and the date
when it shall become effective.  Notwithstanding the dates of effectiveness of
resignation or removal, as the case may be, to be specified in accordance with
the preceding sentences, such resignation or removal shall take effect only upon
the appointment by the Issuer, as hereinafter provided, of a

                                 -12-

<PAGE>

successor Fiscal Agent (which, to qualify as such, shall be a bank or trust
company in good standing and having and acting through an established place of
business in London, authorized under such laws to exercise corporate trust
powers and having a combined capital and surplus in excess of U.S. $50,000,000)
and the acceptance of such appointment by such successor Fiscal Agent. Upon its
resignation or removal, the Fiscal Agent shall be entitled to payment by the
Issuer pursuant to Section 8 hereof of compensation for services rendered and to
reimbursement of out-of-pocket expenses incurred hereunder. If, by the day which
is 10 days before the expiration of any notice under this Section 9(b), the
Issuer has not appointed a successor Fiscal Agent, the Fiscal Agent shall be
entitled, on behalf of the Issuer, to appoint a Fiscal Agent in its place
meeting the requirements set out above (which successor Fiscal Agent must be
approved by the Issuer, provided that such approval shall not be unreasonably
withheld or delayed).

          (c) Successors.  In case at any time the Fiscal Agent or any Paying
              ----------
Agent (if such Paying Agent is the only Paying Agent located in a place where,
by the terms of the Securities or this Agreement, the Issuer is required to
maintain a Paying Agent) shall resign, or shall be removed, or shall become
incapable of acting, or shall be adjudged bankrupt or insolvent, or shall file a
voluntary petition in bankruptcy or make an assignment for the benefit of its
creditors or consent to the appointment of a receiver of all or any substantial
part of its property, or shall admit in writing its inability to pay or meet its
debts as they severally mature, or if a receiver of it or of all or any
substantial part of its property shall be appointed, or if an order of any court
shall be entered approving any petition filed by or against it under the
provisions of applicable receivership, bankruptcy, insolvency, reorganization or
other similar legislation, or if a receiver of it or its property shall be
appointed, or if any public officer shall take charge or control of it or of its
property or affairs, for the purpose of rehabilitation, conservation or
liquidation, a successor Fiscal Agent or Paying Agent, as the case may be,
qualified as aforesaid, shall be appointed by the Issuer by an instrument in
writing, filed with the successor Fiscal Agent or Paying Agent, as the case may
be, and the predecessor Fiscal Agent or Paying Agent, as the case may be.  Upon
the appointment as aforesaid of a successor Fiscal Agent or Paying Agent, as the
case may be, and acceptance by such successor of such appointment, the Fiscal
Agent or Paying Agent, as the case may be, so succeeded shall cease to be Fiscal
Agent or Paying Agent, as the case may be, hereunder.  If no successor Fiscal
Agent or other Paying Agent, as the case may be, shall have been so appointed by
the Issuer and shall have accepted appointment as hereinafter provided, and, in
the case of such other Paying Agent, if such other Paying Agent is the only
Paying Agent located in a place where, by the terms of the Securities or this
Agreement, the Issuer is required to maintain a Paying Agent, then any holder of
a Security who has been a bona fide holder of a Security for at least six
months, on behalf of himself and all others similarly situated, or the Fiscal
Agent may petition any court of competent jurisdiction for the appointment of a
successor agent.  The Issuer shall give prompt written notice to each other
Paying Agent of the appointment of a successor Fiscal Agent and shall give
prompt written notice to the Fiscal Agent of the appointment of a successor
Paying Agent.

          (d) Acknowledgement.  Any successor Fiscal Agent appointed hereunder
              ---------------
shall execute, acknowledge and deliver to its predecessor and to the Issuer an
instrument accepting such appointment hereunder, and thereupon such successor
Fiscal Agent, without any

                                     -13-
<PAGE>

further act, deed or conveyance, shall become vested with all the authority,
rights, powers, trusts, immunities, duties and obligations of such predecessor
with like effect as if originally named as Fiscal Agent hereunder, and such
predecessor, upon payment of its compensation and reimbursement of its
disbursements then unpaid, shall thereupon become obligated to transfer, deliver
and pay over, and such successor Fiscal Agent shall be entitled to receive, all
monies, securities, books, records or other property on deposit with or held by
such predecessor as Fiscal Agent hereunder.

          (e) Merger, Consolidation, etc.  Any corporation into which the Fiscal
              ---------------------------
Agent hereunder may be merged, or any corporation resulting from any merger or
consolidation to which the Fiscal Agent shall be a party, or any corporation to
which the Fiscal Agent shall sell or otherwise transfer all or substantially all
the assets and business of the Fiscal Agent, provided that it shall be qualified
as aforesaid, shall be the successor Fiscal Agent under this Agreement without
the execution or filing of any paper or any further act on the part of any of
the parties hereto.

          10. Payment of Taxes.
              ----------------

          The Issuer will pay all stamp and other duties, if any, which may be
imposed by the State of Delaware, the United States of America or any political
subdivision thereof or taxing authority of or in the foregoing with respect to
this Agreement or the issuance of the Securities.

          11. Meetings and Amendments.
              -----------------------

          (a) Calling of Meeting, Notice and Quorum.  A meeting of holders of
              -------------------------------------
Securities may be called at any time and from time to time to make, give or take
any request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Agreement or the Securities to be made, given or taken
by holders of Securities or to modify, amend or supplement the terms of the
Securities or this Agreement as hereinafter provided.  The Fiscal Agent may at
any time call a meeting of holders of Securities for any such purpose to be held
at such time and at such place in London as the Fiscal Agent shall determine.
Notice of every meeting of holders of Securities, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at
such meeting, shall be given as provided in the terms of the Securities, not
less than 30 nor more than 60 days prior to the date fixed for the meeting.  In
case at any time the Issuer or the holders of at least 25% in aggregate
principal amount of the Outstanding Securities (as defined in subsection (d) of
this Section) shall have requested the Fiscal Agent to call a meeting of the
holders of Securities for any such purpose, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, the Fiscal
Agent shall call such meeting for such purposes by giving notice thereof.

          To be entitled to vote at any meeting of holders of Securities, a
person shall be a holder of Outstanding Securities.  The persons entitled to
vote a majority in principal amount of the Outstanding Securities shall
constitute a quorum.  At the reconvening of any meeting adjourned for a lack of
a quorum, the persons entitled to vote 25% in principal amount the Outstanding
Securities shall constitute a quorum for the taking of an action set forth in
the

                                     -14-
<PAGE>

notice of the original meeting.  The Fiscal Agent may make such reasonable
and customary regulations as it shall deem advisable for any meeting of holders
of Securities with respect to the proof of the holdings of Securities, the
adjournment and chairmanship of such meeting, the appointment and duties of
inspectors of votes, the submission and examination of certificates and other
evidence of the right to vote, and such other matters concerning the conduct of
the meeting as it shall deem appropriate.

          (b) Approval. (i) At any meeting of holders of Securities duly called
              --------
and held as specified above, upon the affirmative vote of the holders of not
less than a majority in aggregate principal amount of the Securities then
Outstanding represented at such meeting (or of such other percentage as may be
set forth in the text of the Securities with respect to the action being taken),
or (ii) with the written consent of the owners of not less than a majority in
aggregate principal amount of the Securities then Outstanding (or of such other
percentage as may be set forth in the text of the Securities with respect to the
action being taken), the Issuer and the Fiscal Agent may, but shall not be
obligated to, modify, amend or supplement the terms of the Securities or this
Agreement, in any way, and the holders of Securities may make, take or give any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Agreement or the Securities to be made, given or taken
by holders of Securities; provided, however, that any resolution referred to in
                          --------  -------
clause (i) above shall be approved by the holders of not less than 25% in
aggregate principal amount of the Securities then Outstanding, and; provided,
                                                                    --------
further, that no such action may, without the consent of the holder of each
-------
Security affected thereby, (A) change the due date for the payment of the
principal of (or premium, if any) or any installment of interest on any
Security, (B) reduce the principal amount of any Security (or premium, if any,
thereon), the portion of such principal amount which is payable upon
acceleration of the maturity of such Security or the interest rate thereon, (C)
change the coin or currency in which or the required places at which payment
with respect to interest, premium or principal in respect of Securities is
payable, (D) permit the Issuer to redeem the Securities if, prior to such
action, the Issuer is not permitted so to do, or (E) reduce the proportion of
the principal amount of Securities required to constitute a quorum at any
meeting of holders of Securities for the adoption of any resolution or the vote
or consent of the holders of which is necessary to modify, amend or supplement
this Agreement or the terms and conditions of the Securities or to make, take or
give any request, demand, authorization, direction, notice, consent, waiver or
other action provided hereby or thereby to be made, taken or given.  The Issuer
and the Fiscal Agent may, without the vote or consent of any holder of
Securities, amend this Agreement or the Securities for the purpose of curing any
ambiguity, or of curing, correcting or, supplementing any defective provision
thereof, or in any manner which the Issuer and the Fiscal Agent may deem
necessary or desirable and which they determine shall not be inconsistent with
the Securities and shall not materially adversely affect the interest of any
holder of Securities or in any manner permitted as set forth in the text of the
Securities.

          It shall not be necessary for the vote or consent of the holders of
Securities to approve the particular form of any proposed modification,
amendment, supplement, request, demand, authorization, direction, notice,
consent, waiver or other action, but it shall be sufficient if such vote or
consent shall approve the substance thereof.

                                     -15-
<PAGE>

          (c)   Binding Nature of Amendments, Notices, Notations, etc.  Any
                ------------------------------------------------------
instrument given by or on behalf of any holder of a Security in connection with
any consent to or vote for any such modification, amendment, supplement,
request, demand, authorization, direction, notice, consent, waiver or other
action will be irrevocable once given and will be conclusive and binding on all
subsequent holders of such Security or any Security issued directly or
indirectly in exchange or substitution therefor or in lieu thereof.  Any such
modification, amendment, supplement, request, demand, authorization, direction,
notice, consent, waiver or other action will be conclusive and binding on all
holders of Securities, whether or not they have given such consent or cast such
vote or were present at any meeting, and whether or not notation of such
modification, amendment, supplement, request, demand, authorization, direction,
notice, consent, waiver or other action is made upon the Securities.  Notice of
any modification or amendment of, supplement to, or request, demand,
authorization, direction, notice, consent, waiver or other action with respect
to the Securities or this Agreement (other than for purposes of curing any
ambiguity or of curing, correcting or supplementing any defective provision
hereof or thereof) shall be given to each holder of Securities affected thereby,
in all cases as provided in such Securities.

          Securities authenticated and delivered after the effectiveness of any
such modification, amendment, supplement, request, demand, authorization,
direction, notice, consent, waiver or other action may bear a notation in the
form approved by the Fiscal Agent and the Issuer as to any matter provided for
in such modification, amendment, supplement, request, demand, authorization,
direction, notice, consent, waiver or other action.  New Securities modified to
conform, in the opinion of the Fiscal Agent and the Issuer, to any such
modification, amendment, supplement, request, demand, authorization, direction,
notice, consent, waiver or other action may be prepared by the Issuer,
authenticated by the Fiscal Agent (or any authentication agent appointed
pursuant to Section 3 hereof) and delivered in exchange for Outstanding
Securities.

          (d)   "Outstanding" Defined.  For purposes of the provisions of this
                ---------------------
Agreement and the Securities, any Security authenticated and delivered pursuant
to this Agreement shall, as of any date of determination, be deemed to be
"Outstanding", except:
               ------

          (i)   Securities theretofore canceled by the Fiscal Agent or delivered
     to the Fiscal Agent for cancellation or held by the Fiscal Agent for
     reissuance but not reissued by the Fiscal Agent;

          (ii)  Securities which have been called for redemption in accordance
     with their terms or which have become due and payable at maturity or
     otherwise and with respect to which monies sufficient to pay the principal
     thereof (and premium, if any) and any interest thereon shall have been made
     available to the Fiscal Agent; or

          (iii) Securities in lieu of or in substitution for which other
     Securities shall have been authenticated and delivered pursuant to this
     Agreement;

provided, however, that in determining whether the holders of the requisite
--------  -------
principal amount of Outstanding Securities are present at a meeting of holders
of Securities for quorum purposes or

                                     -16-
<PAGE>

have consented to or voted in favor of any request, demand, authorization,
direction, notice, consent, waiver, amendment, modification or supplement
hereunder, (i) the principal amount of a Security which by its terms provides
for an amount less than the principal amount to be due and payable upon a
declaration of acceleration of the maturity thereof that shall be deemed to be
Outstanding shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon acceleration of the maturity
thereof, and (ii) Securities owned directly or indirectly by the Issuer shall be
disregarded and deemed not to be Outstanding.

          12. Governing Law.
              -------------

          Except as otherwise provided by applicable mandatory provisions of
law, this Agreement shall be governed by, and interpreted in accordance with,
the laws of the State of New York, United States of America.

          13. Notices.
              -------

          All notices or communications hereunder, except as herein otherwise
specifically provided, shall be in writing and if sent to the Fiscal Agent shall
be delivered, transmitted by facsimile, telexed or telegraphed to it at 336
Strand, London WC2R 1HB, Attention: Bond Agency Department, facsimile
transmission no. 44171-500-0483 or if sent to the Issuer shall be delivered or
transmitted by facsimile to it at Levi Strauss & Co., Levi's Plaza, 1155 Battery
Street, IH1/5, San Francisco, California 94111, facsimile transmission no. (415)
501-1342, Attention: Treasurer.  The foregoing addresses for notices or
communications may be changed by written notice given by the addressee to each
party hereto, and the addressee's address shall be deemed changed for all
purposes from and after the giving of such notice.

          If the Fiscal Agent shall receive any notice or demand addressed to
the Issuer by the holder of a Security, the Fiscal Agent shall promptly forward
such notice or demand to the Issuer.

          14. Consent to Service; Jurisdiction.
              --------------------------------

          The Issuer hereby appoints Citibank, N.A., 120 Wall Street in the
Borough of Manhattan, The City of New York (attention: Corporate Trust
Administration) and its successors as its authorized agent (the "Authorized
Agent") upon which process may be served in any action arising out of or based
on the Securities or this Agreement which may be instituted in any State or
Federal court in the City of New York by the holder of any Security and
expressly accepts the jurisdiction of any such court in respect of such action.
Such appointment, which the Fiscal Agent hereby accepts, shall be irrevocable
until all amounts in respect of the principal of (and premium, if any) and any
interest due and to become due on or in respect of all the Securities have been
either paid or discharged in full, unless and until a successor Fiscal Agent
shall have been appointed as such Authorized Agent and shall have accepted such
appointment.  The Issuer shall take any and all action, including the filing of
any and all documents and instruments, that may be necessary to continue such
appointment or appointments in full force and effect as aforesaid.  Service of
process upon the Authorized

                                     -17-
<PAGE>

Agent at the address indicated above, as such address may be changed within the
Borough of Manhattan, The City of New York by notice given by the Authorized
Agent to the holders of the Securities, shall be deemed, in every respect,
effective service of process upon the Issuer. Notwithstanding the foregoing, any
action arising out of or based on the Securities may be instituted by the holder
of any Security in any other court of competent jurisdiction.

          15.  Headings.
               --------

          The section headings herein are for convenience only and shall not
affect the construction hereof.

          16.  Currency Rate Indemnity.
               -----------------------

          If a judgment or order is given by a court or tribunal of any
particular jurisdiction for the payment of any amounts owing under any of the
Securities to the holders thereof, such judgment or order is expressed in a
currency other than Yen, and the amount which is received (or could have been
received) by converting such other currency to Yen promptly following receipt at
the prevailing rate of exchange in a foreign exchange market reasonably selected
by such holder of Securities is less than the amount owed by the Issuer in Yen,
then the Issuer shall indemnify and hold each affected holder of Securities
harmless against the deficiency and any direct loss sustained as a result
thereof.  The Issuer shall also pay the reasonable cost of the conversion but
shall not be obligated to pay any special or consequential damages.

          17.  Terms and Conditions.
               --------------------

          The Terms and Conditions of the Securities attached hereto as Exhibit
D shall be part of the terms of all the Securities and applicable thereto for
all purposes.  However, the Issuer may prepare the Securities in a form that
includes Terms and Conditions numbered 1 through 6, inclusive, and 12 through
15, inclusive, only.  The omission of such other Terms and Conditions from the
forms of Securities is for convenience only and shall not affect the Terms and
Conditions applicable to the Securities that shall include all of the Terms and
Conditions.

          18.  Counterparts.
               ------------

          This Agreement may be executed in one or more counterparts, and by
each party separately on a separate counterpart, and each such counterpart when
executed and delivered shall be deemed to be an original.  Such counterparts
shall together constitute one and the same instrument.

                                     -18-
<PAGE>

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

                              LEVI STRAUSS & CO.

                              By ________________________
                                 Title:

                              By ________________________
                                 Title:

Attest:

_________________________

                              CITIBANK, N.A. (LONDON BRANCH),
                                 as Fiscal Agent

                              By ________________________
                                 Title:

Attest:

_________________________

                                     -19-
<PAGE>

                                   EXHIBIT A

                       FORM OF TEMPORARY GLOBAL SECURITY

        THIS SECURITY IS A TEMPORARY GLOBAL SECURITY WITHIN THE MEANING
        OF THE FISCAL AGENCY AGREEMENT REFERRED TO HEREINAFTER.  NO EX-
          CHANGE OF AN INTEREST IN THIS TEMPORARY GLOBAL SECURITY MAY
           BE MADE FOR AN INTEREST IN THE PERMANENT GLOBAL SECURITY
            EXCEPT ON OR AFTER THE EXCHANGE DATE AND UPON DELIVERY
              OF CERTIFICATIONS RELATING TO SUCH INTEREST IN THE
                FORMS REQUIRED BY THE FISCAL AGENCY AGREEMENT.

        THIS OBLIGATION HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
              SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
                 OFFERED OR SOLD IN CONTRAVENTION OF THAT ACT.

                              LEVI STRAUSS & CO.

                              (Yen)20,000,000,000

                  4.25 per cent.  Bonds due November 22, 2016

No. TG-1                                                      ISIN: XS0071465586

                           TEMPORARY GLOBAL SECURITY

          LEVI STRAUSS & CO., a corporation duly organized and existing under
the laws of the State of Delaware (the "Issuer"), for value received, hereby
promises to pay to National City Nominees Limited, or registered assigns, the
principal sum of Twenty Billion Japanese Yen ((Yen)20,000,000,000) on November
22, 2016 (or on such earlier date as such principal may become payable in
accordance with the Terms and Conditions (the "Conditions") of the Securities
designated above (the "Securities") which are attached hereto) and to pay
interest thereon from November 22, 1996 or from the most recent Interest Payment
Date (as defined in the Conditions) to which interest has been paid or duly
provided for, semi-annually in arrears on May 1 and November 1 in each year,
commencing May 1, 1997 (each an "Interest Payment Date"), and on the date of
maturity, at the rate of 4.25 per cent. per annum (calculated on the basis of a
year of twelve 30-day months), until the principal hereof is paid or made
available for payment, and, to the fullest extent permitted by applicable law,
at the rate of 4.25 per cent. per annum on any overdue principal and premium and
on any overdue instalment of interest.

                                      A-1
<PAGE>

          This Temporary Global Security is one of a duly authorized issue of
Securities of the Issuer designated as specified in the title hereof, issued and
to be issued under the Fiscal Agency Agreement, dated as of November 22, 1996
("Fiscal Agency Agreement"), between the Issuer and Citibank, N.A. (London
Branch), as Fiscal Agent ("Fiscal Agent").  On or after January 4, 1997 (the
"Exchange Date"), this temporary security is exchangeable in whole or from time
to time in part without charge upon request of the Holder hereof for a
beneficial interest in a duly executed and authenticated Permanent Global
Security in registered form, without coupons, of authorized denominations as
promptly as practicable following presentation of certification, in the form
required by the Fiscal Agency Agreement for such purpose, from Euroclear or
Cedel Bank, and upon presentation of certification to Euroclear or Cedel,
substantially in the form of certificate attached as Exhibit F to the Fiscal
Agency Agreement, from the beneficial owners of the Temporary Global Security or
portions thereof being exchanged.  Upon any exchange of a part of this Temporary
Global Security for a beneficial interest in the Permanent Global Security, the
portion of the principal amount hereof so exchanged shall be endorsed by or on
behalf of the Fiscal Agent on the Schedule hereto, and the principal amount
hereof shall be reduced for all purposes by the amount so exchanged in order
that the Permanent Global Security represents an aggregate principal amount of
securities equal to the aggregate principal amount of beneficial interests in
this Temporary Global Security submitted for exchange.

          Until exchanged in full for the Permanent Global Security, this
Temporary Global Security shall in all respects be entitled to the same benefits
and subject to the same terms and conditions of, and the Issuer shall be subject
to the same restrictions as those to be endorsed on, the Permanent Global
Security and those contained in the Fiscal Agency Agreement.

          This Temporary Global Security shall be governed by and construed in
accordance with the laws of the State of New York.

          Reference is hereby made to the provisions of the Conditions of this
Temporary Global Security attached hereto, which further provisions shall for
all purposes have the same effect as if set forth at this place.

          All terms used in this Temporary Global Security which are defined in
the Fiscal Agency Agreement or the definitive Securities shall have the meanings
assigned to them therein.

          Unless the certificate of authentication hereon has been executed by
or on behalf of the Fiscal Agent by the manual signature of one of its duly
authorized officers, this Temporary Global Security shall not be valid or
obligatory for any purpose.

                                      A-2
<PAGE>

          IN WITNESS WHEREOF, the Issuer has caused this Temporary Global
Security to be duly executed and its corporate seal to be hereunto affixed and
attested.

Dated: November 22, 1996

                              LEVI STRAUSS & CO.

                              By _________________________
                                 Title:

                              By _________________________
                                 Title:

[Corporate Seal]

Attest:

________________________
Title:

          This is the Temporary Global Security referred to in the within-
mentioned Fiscal Agency Agreement and is authenticated by or on behalf of the
Fiscal Agent.

                              CITIBANK, N.A. (LONDON BRANCH),
                                 as Fiscal Agent

                              By _________________________

                                    Authorized Officer

                                      A-3
<PAGE>

                                  SCHEDULE OF
               PRINCIPAL AMOUNT OF THE TEMPORARY GLOBAL SECURITY

          The following subtractions of parts of the principal amount of this
Temporary Global Security have been made:

<TABLE>
<CAPTION>

                            Portion of the aggregate
                            principal amount of this
                              Temporary Global Security      Remaining principal
                            exchanged for interests in         amount of this              Notation made on
  Date of exchange or          the Permanent Global           Temporary Global           behalf of the Fiscal
   cancellation                    Security                      Security                      Agent
 --------------------     ------------------------------  -----------------------      ------------------------
 <S>                      <C>                             <C>                          <C>
                          (Yen)                           (Yen)
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
--------------------     ------------------------------  -----------------------      ------------------------
</TABLE>

                                      A-4
<PAGE>

                                   EXHIBIT B

                       FORM OF PERMANENT GLOBAL SECURITY

           THIS OBLIGATION HAS NOT BEEN REGISTERED UNDER THE UNITED
            STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT
               BE OFFERED OR SOLD IN CONTRAVENTION OF THAT ACT.

                              LEVI STRAUSS & CO.

                                    (Yen)0

                  4.25 per cent.  Bonds due November 22, 2016

No. PG-1                                                      ISIN: XS0071465586

                           PERMANENT GLOBAL SECURITY

          LEVI STRAUSS & CO., a corporation duly organized under the laws of
Delaware (herein called the "Issuer"), for value received, hereby promises to
pay to National City Nominees Limited, or registered assigns, the principal sum
of Zero Japanese Yen ((Yen)0) (or such other amount as is shown in column four
on the Schedule attached hereto, but in no event to exceed (Yen)20,000,000,000)
on November 22, 2016 (or on such earlier date as such principal amount may
become payable in accordance with the Terms and Conditions (the "Conditions") of
the Securities designated above (the "Securities") which are attached hereto)
and to pay interest thereon from November 22, 1996 or from the most recent
Interest Payment Date (as defined in the Conditions) to which interest has been
paid or duly provided for, semi-annually in arrears on May 1 and November 1 in
each year, commencing May 1, 1997 (each an "Interest Payment Date"), and on the
date of maturity, at the rate of 4.25 per cent. per annum (calculated on the
basis of a year of twelve 30-day months), until the principal hereof is paid or
made available for payment, and, to the fullest extent permitted by applicable
law, at the rate of 4.25 per cent. per annum on any overdue principal and
premium and on any overdue instalment of interest.  The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will be paid
to the person in whose name this Permanent Global Security is registered at the
close of business on the April 15 or October 15 next preceding such Interest
Payment Date ("Record Date").  Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the person in whose name this
Permanent Global Security is registered on such Record Date and may be paid to
the person in whose name this Permanent Global Security is registered at the
close of business on a special record date for the payment of such defaulted
interest to be fixed by the Issuer or be paid at any time in any other lawful
manner not inconsistent with the requirement of any securities exchange on which
this Permanent Global Security may be listed.  Such payments (including premium,
if any) shall be

                                      B-1
<PAGE>

made by Japanese Yen check drawn on, or transfer to a Japanese Yen account
maintained by the payee with, a bank in the City of Tokyo. Payment of interest
on this Permanent Global Security will be made by Japanese Yen check drawn on a
bank in The City of Tokyo mailed to the address of the person entitled thereto
as such address shall appear in the Security Register (as defined in Condition 3
of the Conditions hereof) or, upon application by the Holder to the Fiscal Agent
not later than the Record Date in respect of such payment, by transfer to a
Japanese Yen account maintained by the Holder with a bank in the City of Tokyo.

          Upon any exchange of a part of the Temporary Global Security for a
beneficial interest in this Permanent Global Security, the portion of the
principal amount hereof so exchanged shall be endorsed by or on behalf of the
Fiscal Agent on the Schedule hereto, and the principal amount hereof shall be
increased for all purposes by the amount so exchanged.

          This Permanent Global Security is one of a duly authorized issue of
Securities of the Issuer designated as specified in the title hereof, issued and
to be issued under the Fiscal Agency Agreement, dated as of November 22, 1996
("Fiscal Agency Agreement"), between the Issuer and Citibank, N.A. (London
Branch), as Fiscal Agent ("Fiscal Agent").  This Permanent Global Security is
exchangeable, in whole but not in part, for a Definitive Security or Securities
without charge if (i) there occurs and is continuing any Event of Default under
Condition 6 or (ii) this Permanent Global Security is held on behalf of
Euroclear or Cedel or an alternative clearing system and Euroclear or Cedel or
such clearing system is closed for business for a continuous period of 14 days
(other than by reason of holidays, statutory or otherwise) or announces an
intention permanently to cease business or does in fact do so. Thereupon the
holder of a beneficial interest in this Permanent Global Security may give
notice to the Fiscal Agent of its intention to exchange the Permanent Global
Security for Definitive Securities on a day falling not less than 60 days after
the day on which the notice requiring an exchange is given and on which banks
are open for business in the city of London.

          Reference is hereby made to the provisions of the Conditions of this
Permanent Global Security attached hereto, which further provisions shall for
all purposes have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
or on behalf of the Fiscal Agent by the manual signature of one of its duly
authorized officers, this Permanent Global Security shall not be valid or
obligatory for any purpose.

                                      B-2
<PAGE>

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed and its corporate seal to be affixed hereto and attested.

Dated:  November 22, 1996

                              LEVI STRAUSS & CO.

                              By ________________________
                                 Title:

                              By ________________________
                                 Title:

[Corporate Seal]

Attest:

_________________________
Title:

          This is the Permanent Global Security referred to in the within-
mentioned Fiscal Agency Agreement and is authenticated by or on behalf of the
Fiscal Agent.

                              CITIBANK, N.A. (LONDON BRANCH),
                                 as Fiscal Agent

                              By ________________________
                                    Authorized Officer

                                      B-3
<PAGE>

                                  SCHEDULE OF
               PRINCIPAL AMOUNT OF THE PERMANENT GLOBAL SECURITY

          The following increases to and subtractions from the principal amount
of this Permanent Global Security have been made:

<TABLE>
<CAPTION>

            Reason for change in     Increase to or
             principal amount of    subtraction from       Aggregate principal      Notation made on
               this Permanent          aggregate          amount following such       behalf of the
 Date        Global Security/*/     principal amount     increase or subtraction      Fiscal Agent
------    -----------------------  ------------------   -------------------------  ------------------
<S>       <C>                      <C>                  <C>                        <C>
                                   (Yen)                (Yen)
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
------    -----------------------  ------------------   -------------------------  ------------------
</TABLE>
____________________
   /*/   State whether increase/subtraction follows (1) exchange of all or a
         portion of the Temporary Global Note, (2) redemption of all or a
         portion of this Permanent Global Security, (3) payment and cancellation
         of Permanent Global Security or (4) exchange of this Permanent Global
         Security for Definitive Securities.

                                      B-4
<PAGE>

                                   EXHIBIT C

                          FORM OF DEFINITIVE SECURITY

           THIS OBLIGATION HAS NOT BEEN REGISTERED UNDER THE UNITED
                STATES SECURITIES ACT OF 1933, AS AMENDED, AND
                         MAY NOT BE OFFERED OR SOLD IN
                          CONTRAVENTION OF THAT ACT.

                              LEVI STRAUSS & CO.

                                 (Yen)________

                  4.25 per cent.  Bonds due November 22, 2016

No. D-______________                                          ISIN: XS0071465586

          LEVI STRAUSS & CO., a corporation duly organized under the laws of
Delaware (herein called the "Issuer"), for value received, hereby promises to
pay to __________, or registered assigns, the principal sum of _______________
Japanese Yen ((Yen)__________) on November 22, 2016 (or on such earlier date as
such principal amount may become payable in accordance with the Terms and
Conditions (the "Conditions") of the Securities designated above (the
"Securities") which are attached hereto) and to pay interest thereon from
November 22, 1996 or from the most recent Interest Payment Date (as defined in
the Conditions) to which interest has been paid or duly provided for, semi-
annually in arrears on May 1 and November 1 in each year, commencing May 1, 1997
(each an "Interest Payment Date"), and on the date of maturity, at the rate of
4.25 per cent. per annum (calculated on the basis of a year of twelve 30-day
months), until the principal hereof is paid or made available for payment, and,
to the fullest extent permitted by applicable law, at the rate of 4.25 per cent.
per annum on any overdue principal and premium and on any overdue instalment of
interest.  The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will be paid to the person in whose name this Security
is registered at the close of business on the April 15 or October 15 next
preceding such Interest Payment Date ("Record Date").  Any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the
person in whose name this Security is registered on such Record Date and may be
paid to the person in whose name this Security is registered at the close of
business on a special record date for the payment of such defaulted interest to
be fixed by the Issuer or be paid at any time in any other lawful manner not
inconsistent with the requirement of any securities exchange on which this
Security may be listed.  Such payments (including premium, if any) shall be made
by Japanese Yen check drawn on, or transfer to a Japanese Yen account maintained
by the payee with, a bank in the City of Tokyo.  Payment of interest on this
Security will be made by Japanese Yen check drawn on a bank in The City of Tokyo
mailed to the address of the person

                                      C-1
<PAGE>

entitled thereto as such address shall appear in the Security Register (as
defined in Condition 3 of the Terms and Conditions hereof) or, upon application
by the Holder to the Fiscal Agent not later than the Record Date in respect of
such payment, by transfer to a Japanese Yen account maintained by the Holder
with a bank in the City of Tokyo. The Issuer covenants that until this Security
has been delivered to the Fiscal Agent for cancellation, or monies sufficient to
pay the principal of and premium, if any, and interest on this Security has been
made available for payment and either paid or returned to the Issuer, it will at
all times maintain an office or agency outside the United States for the payment
of the principal of and premium, if any, and interest on the Securities as
herein provided.

          This Security is one of a duly authorized issue of Securities of the
Issuer designated as specified in the title hereof, issued and to be issued
under the Fiscal Agency Agreement, dated as of November 22, 1996 ("Fiscal Agency
Agreement"), between the Issuer and Citibank, N.A. (London Branch), as Fiscal
Agent ("Fiscal Agent").  Reference is hereby made to the provisions of the
Conditions of this Security attached hereto, which further provisions shall for
all purposes have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
or on behalf of the Fiscal Agent by the manual signature of one of its duly
authorized officers, this Security shall not be valid or obligatory for any
purpose.

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed and its corporate seal to be affixed hereto and attested.

Dated:  November 22, 1996

                              LEVI STRAUSS & CO.

                              By __________________________
                                 Title:

                              By __________________________
                                 Title:

[Corporate Seal]

Attest:

_________________________
Title:

          This is one of the Securities referred to in the within-mentioned
Fiscal Agency Agreement and is authenticated by or on behalf of the Fiscal
Agent.

                                      C-2
<PAGE>

                              CITIBANK, N.A. (LONDON BRANCH),
                                as Fiscal Agent

                              By _______________________
                                    Authorized Officer

                                      C-3
<PAGE>

                                   EXHIBIT D

                     TERMS AND CONDITIONS OF THE SECURITIES

          1.   This Security is one of a duly authorized issue of securities of
the Issuer in the aggregate principal amount of 20,000,000,000 Japanese Yen
((Yen)20,000,000,000), designated as its 4.25 per cent. Bonds due November 22,
2016 (herein called the "Securities"). The Issuer, for the benefit of the
Holders (as defined in Condition 2 herein) from time to time of the Securities,
has entered into a Fiscal Agency Agreement, dated as of November 22, 1996
(herein called the "Fiscal Agency Agreement"), between the Issuer and Citibank,
N.A. (London Branch), as Fiscal Agent (herein called the "Fiscal Agent", which
term includes any successor fiscal agent under the Fiscal Agency Agreement),
copies of which Fiscal Agency Agreement are on file and available for inspection
at the corporate trust office of the Fiscal Agent in London. Upon the written
request of any Holder, the Fiscal Agent will provide a copy of the Fiscal Agency
Agreement to such Holder.

          The Securities are unsecured direct, unconditional and general
obligations of the Issuer and will rank pari passu, without any preference or
                                        ---- -----
priority of payment, among themselves and with all other evidences of
indebtedness issued in accordance with the Fiscal Agency Agreement and with all
other unsecured and unsubordinated indebtedness of the Issuer.

          2.   The Securities are issuable as registered Securities.  The
Securities are issuable in authorized denominations of ((Yen)1,000,000,000 and
integral multiples thereof.  As used herein, the term "Holder", when used with
respect to any Security, means the person in whose name such Security is
registered in the Security Register.

          3.   The Issuer shall maintain in London an office or agency where
Securities may be surrendered for registration of transfer or exchange. The
Issuer has initially appointed the corporate trust office (the "Principal
Office") of the Fiscal Agent as its agent in London for such purpose and has
agreed to cause to be kept at such office a register (the register maintained in
such office and in any other office or agency for such purpose being herein
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Issuer will provide for the
registration and transfers of Securities. The Issuer reserves the right to vary
or terminate the appointment of the Fiscal Agent as security registrar or any
transfer agent or to appoint additional or other registrars or transfer agents
or to approve any change in the office through which any security registrar or
transfer agent acts, provided that there will at all times be a security
registrar in London.

          The transfer of a Security is registrable on the Security Register
upon surrender of such Security at the Principal Office of the Fiscal Agent duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Issuer and the Fiscal Agent duly executed by, the Holder
thereof or his attorney duly authorized in writing.  Upon such surrender of this
Security for registration of transfer, the Issuer shall execute, and the Fiscal
Agent shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more

                                      D-1
<PAGE>

new Securities, dated the date of authentication thereof, of any authorized
denominations and of a like aggregate principal amount.

          At the option of the Holder upon request confirmed in writing,
Securities may be exchanged for Securities of any authorized denominations and
of a like aggregate principal amount, upon surrender of the Securities to be
exchanged at the office of any transfer agent or at the Principal Office of the
Fiscal Agent.  Any registration of transfer or exchange will be effected upon
the transfer agent or the Fiscal Agent, as the case may be, being satisfied with
the documents of title and identity of the person making the request and subject
to such reasonable regulations as the Issuer may from time to time agree with
the transfer agents and the Fiscal Agent.  Whenever any Securities are so
surrendered for exchange, the Issuer shall execute, and the Fiscal Agent shall
authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

          In the event of a redemption in part, the Issuer shall not be required
(i) to register the transfer of or exchange any Security during a period
beginning at the opening of business 15 days before the date notice is given
identifying the Securities to be redeemed or (ii) to register the transfer of or
exchange any registered Security, or portion thereof, called for redemption.

          All Securities issued upon any registration of transfer or exchange of
Securities shall be valid obligations of the Issuer, evidencing the same debt,
and entitled to the same benefits, as the Securities surrendered upon such
registration of transfer or exchange.  No service charge shall be made for any
registration of transfer or exchange, but the Issuer may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith, other than an exchange in connection with a partial
redemption of a Security not involving any registration of a transfer.

          The Issuer and the Fiscal Agent and any other paying agency of the
Issuer may deem and treat the person in whose name a Security is registered the
owner thereof for all purposes whether or not such Security be overdue, and
neither the Issuer, the Fiscal Agent nor any such agent shall be affected by
notice to the contrary.

          4.   (a)  Subject to the following provisions, the Issuer shall
provide to the Fiscal Agent at its head office in the City of Tokyo, on or prior
to the applicable due date for the payment of Securities, funds required to make
payment of the principal of and interest on the Securities, at the times, in the
amounts, in such coin or currency and for the purposes set forth herein and in
the text of the Securities; and the Issuer hereby authorizes and directs the
Fiscal Agent from funds so paid to it to make or cause to be made payment of the
principal of (and premium, if any) and interest on the Securities as set forth
herein and in the text of the Securities.  The Fiscal Agent will arrange
directly with the Paying Agents (if applicable) for the payment, and the Fiscal
Agent will make payment, in the manner provided herein and in the Securities,
from funds furnished by the Issuer, of the principal of (and premium, if any)
and interest on the Securities.

          The principal of (and premium, if any) and interest on the Securities
shall be payable in Japanese Yen.  Payment of principal shall be made to the
registered owner against

                                      D-2
<PAGE>

surrender of Securities, subject to any applicable laws and regulations, at the
office of any Paying Agent. Payment of any installment of interest on a Security
shall be made to the person in whose name such Security is registered at the
close of business on April 15 and October 15 (whether or not such days are
business days) in the year of the relevant interest payment date (the "Record
Date"), in accordance with such information furnished to the Fiscal Agent by the
Registrar promptly after each Record Date. Payments of principal (and premium,
if any) and interest will be made, subject to any applicable laws and
regulations, by transfer to a Japanese Yen account maintained by the payee with
a bank in Tokyo. Each registered owner shall give notice of such Japanese Yen
account, in the case of principal payments, to the relevant Paying Agent not
less than 15 days prior to the date of the payment to be received, or, in the
case of interest payments, to the Registrar not later than the Record Date
relating to the payment to be received. If a registered owner fails to give such
notice prior to the time limit specified above, payments of principal (and
premium, if any) and interest will be made, subject to any applicable laws and
regulations, by a Japanese Yen check drawn on a bank in Tokyo unless the
relevant Paying Agent or (as the case may be) the Registrar at its discretion
accepts such notice given after the time limit specified above. Payments to non-
residents of Japan shall be made to a non-resident Japanese Yen account
maintained by the payee with an authorized foreign exchange bank in Tokyo or (as
the case may be) by a Japanese Yen check drawn on an authorized foreign exchange
bank in Tokyo, subject to each case to any applicable laws and regulations. Any
monies paid by the Issuer to the Fiscal Agent for the payment of the principal
of or premium, if any, or interest on any Securities and remaining unclaimed at
the end of two years after such principal, premium or interest shall have become
due and payable (whether at maturity, upon call for redemption or otherwise) and
monies sufficient therefor shall have been duly made available for payment shall
then be repaid to the Issuer upon its written request, and upon such repayment
all liability of the Fiscal Agent and the Paying Agents with respect thereto
shall cease, without, however, limiting in any way any obligation the Issuer may
have to pay the principal of or premium, if any, and interest on this Security
as the same shall become due.

          (b) In any case where the due date for the payment of the principal of
and premium, if any, or interest on any Security or the date fixed for
redemption of any Security shall be at any place of payment a day on which
banking institutions in such place or in Tokyo or London are authorized or
obligated by law to close, then payment of principal, premium or interest need
not be made on such date at such place but may be made on the next succeeding
day at such place which is not a day on which banking institutions in such place
or in Tokyo or London are authorized or obligated by law to close, with the same
force and effect as if made on the date for such payment or the date fixed for
redemption, and no interest shall accrue for the period after such date.

          5.   (a)  On November 1, 2006 and on any Interest Payment Date
thereafter, the Securities are subject to redemption, at the option of the
Issuer in whole or in part, upon not less than 30 nor more than 60 days' prior
written notice given as hereinafter provided, at a redemption price equal to the
Make Whole Redemption Amount.

          (b) In the case of any partial redemption of Securities, the
Securities to be redeemed shall be selected by the Fiscal Agent not more than 60
days prior to the redemption date, from the Outstanding Securities not
previously called for redemption, by prorating, as

                                      D-3
<PAGE>

nearly as may be practicable, the principal amount of Securities to be redeemed.
In any proration pursuant to this Condition 5, the Fiscal Agent shall make such
adjustments, reallocations and eliminations as it shall deem proper to the end
that the principal amount of Securities so prorated shall be (Yen)l,000,000,000
or a multiple thereof, by increasing or decreasing or eliminating the amount
which would be allocable to any Holder on the basis of exact proportion by an
amount not to exceed (Yen)1,000,000,000.

          (c) Notices to redeem Securities shall be given in writing mailed,
first-class postage prepaid, to each Holder of Securities, or portions thereof,
so to be redeemed, at his address as it appears in the Security Register.
Neither the failure to give notice nor any defect in any notice given to any
particular Holder of a Security shall affect the sufficiency of any notice with
respect to other Securities.  Notices to redeem Securities shall specify the
date fixed for redemption, the redemption price, the place or places of payment,
that payment will be made upon presentation and surrender of the Securities to
be redeemed (or portion thereof in the case of a partial redemption of a
Security), that interest accrued to the date fixed for redemption (unless the
redemption date is an Interest Payment Date) will be paid as specified in said
notice, and that on and after said date interest thereon will cease to accrue.

          (d) If notice of redemption has been given in the manner set forth in
clause (c) of this Condition 5 the Securities so to be redeemed shall become due
and payable on the redemption date specified in such notice and upon
presentation and surrender of the Securities at the place or places specified in
such notice the Securities shall be paid and redeemed by the Issuer at the
places and in the manner herein specified and at the redemption price herein
specified together with accrued interest (unless the redemption date is an
Interest Payment Date) to the redemption date.  From and after the redemption
date, if monies for the redemption of Securities called for redemption shall
have been made available at the corporate trust office of the Fiscal Agent for
redemption on the redemption date, the Securities called for redemption shall
cease to bear interest and the only right of the holders of such Securities
shall be to receive payment of the redemption price together with accrued
interest (unless the redemption date is an Interest Payment Date) to the
redemption date as aforesaid.  If monies for the redemption of the Securities
are not made available for payment until after the redemption date, the
Securities called for redemption shall not cease to bear interest until such
monies have been so made available.

          (e) Any Security which is to be redeemed only in part shall be
surrendered with, if the Issuer or the Fiscal Agent so requires, due endorsement
by, or a written instrument of transfer in form satisfactory to the Issuer and
the Fiscal Agent duly executed by, the Holder thereof or his attorney duly
authorized in writing, and the Issuer shall execute, and the Fiscal Agent shall
authenticate and deliver to the Holder of such Security without service charge,
a new Security or Securities of any authorized denomination as requested by such
Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

          (f) Securities redeemed or otherwise acquired by the Issuer or their
subsidiaries will forthwith be delivered to the Fiscal Agent for cancellation
and may not be reissued or resold.

                                      D-4
<PAGE>

          The following terms used in this Condition 5 shall have the following
meanings:

          "Adjusted JGB Rate" means a rate of interest per annum calculated by
the Calculation Agent corresponding to the calculated yield per annum of a
Japanese Government Bond ("JGB") bearing a maturity equal to the Remaining Term,
such yield to be interpolated between the yields on (i) the JGB with a constant
maturity closest to and greater than the Remaining Term and (ii) the JGB with a
constant maturity closest to and less than the Remaining Term, plus the Credit
Spread.

          "Calculation Agent" means Goldman Sachs International or, if it is
unavailable or unwilling to serve, any other banking or investment banking firm
of recognized international standing appointed from time to time by the Issuer
to act as Calculation Agent hereunder.

          "Credit Spread" means .45 per cent. from November 1, 2006 to and
including November 1, 2011, and .25 per cent. thereafter.

          "Make Whole Redemption Amount" in respect of any Security means the
aggregate present value as of such date of each yen of principal being redeemed
or paid and the amount of interest (exclusive of interest accrued to such date)
that would have been payable in respect of each such yen if such redemption or
payment had not been made, determined by discounting, on a semi-annual basis,
such principal and interest at the Adjusted JGB Rate from the respective dates
on which principal and interest would have been payable if such redemption or
payment had not been made; provided, however, that beginning November 1, 2006 to
                           --------  -------
and including November 1, 2011, such amount shall not be less than 100 per cent.
of the aggregate principal amount of the Securities being so redeemed.

          "Remaining Term" means the remaining term of the Securities from the
redemption date.

          6.   In the event of the occurrence of any of the following
events (each, an "Event of Default")

          (a)  default in the payment of the principal of or premium, if any, of
any Security when due (whether at maturity, upon redemption or otherwise); or

          (b)  default in the payment of any interest on any Security for a
period of more than 30 days after the date when due; or

          (c)  default in the performance or breach of any other covenant,
warranty or agreement contained in the Securities or, if applicable to the
Securities, in the Fiscal Agency Agreement for a period of 60 days after the
date on which written notice of such default requiring the Issuer to remedy the
same and stating that such notice is a "Notice of Default" shall first have been
given to the Issuer by the Fiscal Agent or to the Issuer and the Fiscal Agent by
the holders of at least 25% in aggregate principal amount of the Outstanding
Securities; or

          (d)  default under any bond, debenture, note or other evidence of
indebtedness for money borrowed of the Issuer or under any mortgage, indenture
or instrument

                                      D-5
<PAGE>

under which there may be issued or by which there may be secured or evidenced
any indebtedness for money borrowed of the Issuer with a principal amount then
outstanding, individually or in the aggregate, in excess of $25,000,000, whether
such indebtedness now exists or shall hereafter be created, which default shall
constitute a failure to pay any portion of the principal of such indebtedness
when due and payable after the expiration of any applicable grace period with
respect thereto or shall have resulted in such indebtedness becoming or being
declared due and payable prior to the date on which it would otherwise have
become due and payable, without such indebtedness having been discharged or such
failure to pay or such acceleration having been rescinded or annulled, within a
period of 30 days after the date on which written notice of such failure to pay
or such acceleration, requiring the Issuer to remedy the same and stating that
such notice is a "Notice of Default", shall first have been given to the Issuer
by the Fiscal Agent or to the Issuer and the Fiscal Agent by the holders of at
least 25% in aggregate principal amount of the Outstanding Securities; or

          (e) the entry by a court having jurisdiction in the premises of (i) a
decree or order for relief in respect of the Issuer in an involuntary case or
proceeding under any applicable bankruptcy, insolvency, reorganization or other
similar law or (ii) a decree or order adjudging the Issuer a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Issuer under any
applicable law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Issuer or of any
substantial part of the property of the Issuer, or ordering the winding up or
liquidation of the affairs of the Issuer, and any such decree or order for
relief or any such other decree or order shall continue unstayed and in effect
for a period of 60 consecutive days; or

          (f) commencement by the Issuer of a voluntary case or proceeding under
any applicable bankruptcy, insolvency, reorganization or other similar law or of
any other case or proceeding to be adjudicated a bankrupt or insolvent, or the
consent by the Issuer to the entry of a decree or order for relief in respect of
the Issuer in an involuntary case or proceeding under any applicable bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against the Issuer, or the filing by
the Issuer of a petition or answer or consent seeking reorganization or relief
under any such applicable law, or the consent by the Issuer to the filing of
such petition or to the appointment of or the taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Issuer or of any substantial part of its property, or the making by the
Issuer of an assignment for the benefit of creditors, or the taking of action by
the Issuer in furtherance of any such action;

then, in the case of any Event of Default specified in clause (e) or (f) above,
the principal of, any accrued interest on and any unpaid additional amounts in
respect of the Securities then Outstanding (as such term is defined in the
Fiscal Agency Agreement) shall ipso facto become immediately due and payable
                               ---- -----
without any declaration or other act on the part of the Fiscal Agent or the
holder of any Security.  If any Event of Default specified in clause (a) or (b)
above occurs and is continuing, the holder of any Security may, by notice in
writing to the Issuer, declare the principal of such Security to be immediately
due and payable, and upon such declaration the principal of and any accrued
interest on such Security shall become immediately

                                      D-6
<PAGE>
due and payable. If any other Event of Default shall have occurred and be
continuing, the Fiscal Agent shall, at the request of the holders of not less
than 25% in principal amount of the Outstanding Securities, by written notice to
the Issuer, declare the principal of all the Securities to be due and payable
immediately, and upon such declaration the principal of and any accrued interest
on shall become immediately due and payable. The right of the Fiscal Agent to
give any such notice shall terminate if the Event of Default giving rise to such
right shall have been cured before such right is exercised.

          At any time after such a declaration of acceleration has been made and
before a judgment or decree for payment of the money due has been obtained, the
holders of a majority in principal amount of the Outstanding Securities, by
written notice to the Issuer and the Fiscal Agent, may rescind and annul such
declaration and its consequences if

          (1) the Issuer has paid or deposited with the Fiscal Agent, a sum
     sufficient to pay

               (A) all overdue interest on all Securities,

               (B) the principal of any Securities which have become due
          otherwise than by such declaration of acceleration and, to the extent
          that payment of such interest is lawful, interest thereon at the rate
          provided herein, and

               (C) to the extent that payment of such interest is lawful,
          interest upon overdue interest at the rate provided herein,

          and

          (2) all Events of Default, other than the nonpayment of the principal
     of Securities which have become due solely by such declaration of
     acceleration, have been cured or waived.

No such rescission shall affect any subsequent default or impair any right
consequent thereon.

          As provided in Section 17 of the Fiscal Agency Agreement, Terms and
Conditions 7 through 11, inclusive, may be omitted from the "Terms and
Conditions" of the Securities, but shall remain applicable to the Securities.

          7.   For so long as any of the Securities remain Outstanding or
any amount remains unpaid on any of the Securities, the Issuer will comply with
the terms of the covenants set forth below:

          (a)  The Issuer shall at all times preserve and keep in full force and
effect its corporate existence and rights and franchises material to its
business and its goodwill and the business and the goodwill of each of its
Subsidiaries, except where the failure to do so would not in the aggregate have
a Material Adverse Effect (as defined below).

                                      D-7
<PAGE>

          (b) The Issuer shall comply with the requirements of each applicable
Requirement of Law (as defined below), except where the failure to do so would
not in the aggregate have a Material Adverse Effect.

          (c) The Issuer shall pay, and cause each of its Subsidiaries (as
defined below) to pay, all taxes, assessments and other governmental charges
(other than taxes, assessments and other governmental charges not exceeding
$5,000,000 in the aggregate) imposed upon them or any of their properties or
assets or in respect of any of their franchises, business, income or property
before any penalty or interest accrues thereon, and all claims (including,
without limitation, claims for labor, services, materials and supplies) for sums
(other than claims not exceeding $5,000,000 in the aggregate) which have become
due and payable and which by law have or may become a Lien (as defined below)
upon any of their properties or assets, prior to the time when any penalty or
fine shall be incurred with respect thereto; provided that no such governmental
charge or claim need be paid if it is being contested in good faith by
appropriate proceedings and if such reserve or other appropriate provision, if
any, as shall be required in conformity with GAAP shall have been made therefor.

          (d) The Issuer shall maintain or cause to be maintained in good
repair, working order and condition all properties used or useful in the
business of the Issuer and its Subsidiaries and from time to time will make or
cause to be made all appropriate repairs, renewals and replacements thereof, if
the failure to perform such actions would in the aggregate have a Material
Adverse Effect.  The Issuer shall maintain or cause to be maintained, through
self-insurance or with financially sound and reputable insurers, insurance with
respect to its properties and business and the properties and business of its
Subsidiaries against loss or damage of the kinds customarily insured against by
corporations of established reputation engaged in the same or similar businesses
and similarly situated, of such types and in such amounts as are customarily
carried under similar circumstances by such other corporations, if the failure
to do so would (as to all such failures in the aggregate) have a Material
Adverse Effect.

          (e) The following terms used in this Condition 7 and/or, as
applicable, in Conditions 8 or 9, shall have the following meanings:

          "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person.  For the purposes of this definition,
"control," when used with respect to any specified Person, means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

          "Attributable Indebtedness," in respect of any sale and leaseback
transaction, means, as of the time of determination, the total obligation
(discounted to present value at the rate per annum equal to the discount rate
which would be applicable to a capital lease obligation with like term in
accordance with generally accepted accounting principles) of the lessee for
rental payments (other than amounts required to be paid on account of property
taxes, maintenance, repairs, insurance, water rates and other items which do not
constitute payments

                                      D-8
<PAGE>

for property rights) during the remaining portion of the initial term of the
lease included in such sale and leaseback transaction.

          "Consolidated Net Tangible Assets" means the aggregate amount of
assets (less applicable reserves and other properly deductible items) after
deducting therefrom (i) all current liabilities (excluding any indebtedness for
money borrowed having a maturity of less than 12 months from the date of the
most recent consolidated balance sheet of the Issuer but which by its terms is
renewable or extendable beyond 12 months from such date at the option of the
borrower) and (ii) all goodwill, trade names, patents, unamortized debt discount
and expense and any other like intangibles, all as set forth on the most recent
consolidated balance sheet of the Issuer and computed in accordance with
generally accepted accounting principles.

          "Funded Indebtedness" means (i) all Indebtedness having a maturity of
more than 12 months from the date as of which the determination is made or
having a maturity of 12 months or less but by its terms being renewable or
extendible beyond 12 months from such date at the option of the borrower and
(ii) rental obligations payable more than 12 months from such date under leases
which are capitalized in accordance with generally accepted accounting
principles (such rental obligations to be included as Funded Indebtedness at the
amount so capitalized as of such date of determination).

          "GAAP" means generally accepted accounting principles set forth from
time to time in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and authority within the accounting
profession), or in such other statements by such other entity as may be in
general use by significant segments of the U.S. accounting profession, which are
applicable to the circumstances as of the date of determination.

          "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government,
and any corporation or other entity owned or controlled, through stock or
capital ownership or otherwise, by any of the foregoing.

          "Indebtedness" means obligations (other than nonrecourse obligations)
of, or guaranteed or assumed by, the Issuer for borrowed money, including
obligations evidenced by bonds, debentures, notes or other similar instruments
and reimbursement and cash collateralization of letters of credit, bankers'
acceptances, interest rate hedge and currency hedge agreements.

          "Lien" means, with respect to any property or assets, any mortgage or
deed of trust, pledge, hypothecation, assignment, security interest, lien,
encumbrance, or other security arrangement of any kind or nature whatsoever on
or with respect to such property or assets (including any conditional sale or
other title retention agreement having substantially the same economic effect as
any of the foregoing).

                                      D-9
<PAGE>

          "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, condition
(financial or otherwise) of the Issuer and its Subsidiaries taken as a whole;
(b) a material impairment of the ability of the Issuer to perform under the
Fiscal Agency Agreement or the Securities, and to avoid any Event of Default; or
(c) a material adverse effect upon the legality, validity, binding effect or
enforceability against the Issuer of the Fiscal Agency Agreement or the
Securities.

          "Officers' Certificate," when used with reference to the Issuer, means
a written certificate signed by any one of the Chairman of the Board, the Chief
Executive Officer, the President, the Chief Financial Officer or any Vice
President of the Issuer and by any one of the Treasurer, the Controller, an
Assistant Treasurer, an Assistant Controller, the Secretary or an Assistant
Secretary of the Issuer, and delivered to the Fiscal Agent.

          "Opinion of Counsel" means a written opinion of counsel selected by
the Issuer, which counsel shall be reasonably acceptable to the Fiscal Agent.

          "Person" means an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture or Governmental Authority.

          "Principal Property" means any contiguous or proximate parcel of real
property owned by, or leased to, the Issuer or any of its Restricted
Subsidiaries, and any equipment located at or comprising a part of any such
property, having a gross book value (without deduction of any depreciation
reserves), as of the date of determination, in excess of 1.0% of Consolidated
Net Tangible Assets.

          "Requirement of Law" means, as to any Person, any law (statutory or
common), treaty, rule or regulation or determination of an arbitrator or of a
Governmental Authority, in each case applicable to or binding upon the Person or
any of its property or to which the Person or any of its property is subject.

          "Restricted Subsidiary" means any Subsidiary of the Issuer which owns
or leases a Principal Property.

          "Subsidiary" of the Issuer means any corporation, association,
partnership, joint venture or other business entity of which more than 50% of
the voting stock or other equity interests (in the case of Persons other than
corporations), is owned or controlled directly or indirectly by the Issuer, or
one or more of the Subsidiaries of the Issuer, or a combination thereof.

          8.   (a)  The Issuer will not, and will not permit any Restricted
Subsidiary to, enter into any sale and leaseback transaction with respect to any
Principal Property unless: (i) the sale and leaseback transaction is solely with
the Issuer or another Restricted Subsidiary; (ii) the lease is for a period not
in excess of three years, including renewal rights; (iii) the lease secures or
relates to industrial revenue or pollution control bonds; (iv) the Issuer or
such Restricted Subsidiary would (at the time of entering into such arrangement)
be entitled as

                                     D-10
<PAGE>

described in clauses (i) through (viii) of the second paragraph of subparagraph
(b), without equally and ratably securing this Security, to create, incur,
issue, assume or guarantee Indebtedness secured by a Lien on such Principal
Property in the amount of the Attributable Indebtedness arising from such sale
and leaseback transaction; (v) the Issuer or such Restricted Subsidiary, within
180 days after the sale of such Principal Property in connection with such sale
and leaseback transaction is completed, applies an amount equal to the greater
of (A) the net proceeds of the sale of the Principal Property leased or (B) the
fair market value of the Principal Property leased to (1) the retirement of
Securities, other Funded Indebtedness of the Issuer ranking on a parity with the
Securities, or Funded Indebtedness of a Restricted Subsidiary or (2) the
purchase of other property which will constitute a Principal Property having a
value at least equal to the value of the Principal Property leased; or (vi) the
Attributable Indebtedness of the Issuer and its Restricted Subsidiaries in
respect of such sale and leaseback transaction and all other sale and leaseback
transactions entered into after the date of the Fiscal Agency Agreement (other
than any such sale and leaseback transactions as would be permitted as described
in clauses (i) through (v) of this sentence), plus the aggregate principal
amount of Indebtedness secured by Liens on Principal Properties then outstanding
(not including any such Indebtedness secured by Liens described in clauses (i)
through (viii) of the second paragraph of subparagraph (b) below) which do not
equally and ratably secure such outstanding Securities (or secure such
outstanding Securities on a basis that is prior to other Indebtedness secured
thereby), would not exceed 10% of Consolidated Net Tangible Assets.

          (b) The Issuer will not, and will not permit any Restricted Subsidiary
to, create, incur, issue, assume or guarantee any Indebtedness secured by a Lien
upon any Principal Property, or upon shares of capital stock or Indebtedness
issued by any Restricted Subsidiary and owned by the Issuer or any Restricted
Subsidiary, now or hereafter acquired, without effectively providing
concurrently that this Security is secured equally and ratably with or, at the
option of the Issuer, prior to such Indebtedness so long as such Indebtedness
shall be so secured.

          The foregoing restriction shall not apply to, and there shall be
excluded from Indebtedness in any computation under such restriction,
Indebtedness secured by (i) Liens on any property existing at the time of the
acquisition thereof; (ii) Liens on property of a corporation existing at the
time such corporation is merged into or consolidated with the Issuer or a
Restricted Subsidiary or at the time of a sale, lease or other disposition all
or substantially all of the properties of such corporation (or a division
thereof) to the Issuer or a Restricted Subsidiary, provided that any such Lien
                                                   --------
does not extend to any property owned by the Issuer or any Restricted Subsidiary
immediately prior to such merger, consolidation, sale, lease or disposition;
(iii) Liens on property of a corporation existing at the time such corporation
becomes a Restricted Subsidiary; (iv) Liens in favor of the Issuer or a
Restricted Subsidiary; (v) Liens to secure all or part of the cost of
acquisition, construction, development or improvement of the underlying
property, or to secure Indebtedness incurred to provide funds for any such
purpose, provided that the commitment of the creditor to extend the credit
         --------
secured by any such Lien shall have been obtained not later than 180 days after
the later of (A) the completion of the acquisition, construction, development or
improvement of such property or (B) the placing in operation of such property or
of such property as so constructed, developed or improved; (vi) Liens in favor
of the United States of America or any State thereof, or any department, agency

                                     D-11
<PAGE>

or instrumentality or political subdivision thereof, to secure partial,
progress, advance or other payments; (vii) Liens securing industrial revenue or
pollution control bonds; and (viii) Liens existing on the date of the Fiscal
Agency Agreement or any extension, renewal or replacement or refunding of any
Indebtedness secured by a Lien existing on the date of the Fiscal Agency
Agreement or referred to in clause (i), (ii), (iii) or (v); provided, however,
                                                            --------  -------
that the principal amount of Indebtedness secured thereby and not otherwise
authorized by clauses (i) through (vii) shall not exceed the principal amount of
Indebtedness, plus any premium or fee payable in connection with any such
extension, renewal, replacement, or refunding, so secured at the time of such
extension, renewal, replacement or refunding.

          Notwithstanding the restrictions described above, the Issuer and its
Restricted Subsidiaries may create, incur, issue, assume or guarantee
Indebtedness secured by Liens without equally and ratably securing this Security
if, at the time of such creation, incurrence, issuance, assumption or guarantee,
after giving effect thereto and to the retirement of any Indebtedness which is
concurrently being retired, the aggregate amount of all outstanding Indebtedness
secured by Liens which would otherwise be subject to such restrictions (other
than any Indebtedness secured by Liens permitted as described in clauses (i)
through (viii) of the immediately preceding paragraph) plus all Attributable
Indebtedness in respect of sale and leaseback transactions with respect to
Principal Properties (with the exception of such transactions which are
permitted under clauses (i) through (v) of the first sentence of the first
paragraph of subparagraph (a) above) does not exceed 10% of Consolidated Net
Tangible Assets.

          9.   (a)  The Issuer shall not consolidate with or merge into any
other Person or convey, transfer or lease all or substantially all of the
Issuer's properties and assets to any Person, and the Issuer shall not permit
any Person to consolidate with or merge into the Issuer or convey, transfer or
lease its properties and assets substantially as an entirety to the Issuer,
unless:

          (i)  in case the Issuer shall consolidate with or merge into another
     Person or convey, transfer or lease all or substantially all of the
     Issuer's properties and assets to any Person, the Person formed by such
     consolidation or into which the Issuer is merged or the Person which
     acquires by conveyance or transfer, or which leases, all or substantially
     all of the Issuer's properties and assets shall be a corporation,
     partnership, trust or other entity, shall be organized and validly existing
     under the laws of the United States of America, any State thereof or the
     District of Columbia and shall expressly assume, by an amendment to the
     Fiscal Agency Agreement, executed and delivered to the Fiscal Agent, in
     form satisfactory to the Fiscal Agent, the due and punctual payment of the
     principal of and any premium and interest on all the Securities and the
     performance or observance of every covenant of the Fiscal Agency Agreement
     on the part of the Issuer to be performed or observed;

          (ii) immediately after giving effect to such transaction and treating
     any indebtedness which becomes an obligation of the Issuer or any
     Subsidiary as a result of such transaction as having been incurred by the
     Issuer or such Subsidiary at the time of

                                     D-12
<PAGE>

     such transaction, no Event of Default, and no event which, after notice or
     lapse of time or both, would become an Event of Default, shall have
     happened and be continuing;

          (iii)  if, as a result of any such consolidation or merger or such
     conveyance, transfer or lease, properties or assets of the Issuer would
     become subject to a Lien which would not be permitted by the Fiscal Agency
     Agreement, the Issuer or such successor Person, as the case may be, shall
     take such steps as shall be necessary effectively to secure this Security
     equally and ratably with (or prior to) all indebtedness secured thereby;
     and

          (iv)   the Issuer has delivered to the Fiscal Agent an Officers'
     Certificate and an Opinion of Counsel, each stating that such
     consolidation, merger, conveyance, transfer or lease and, if an amendment
     to the Fiscal Agency Agreement is required in connection with such
     transaction, such amendment comply with this Article and that all
     conditions precedent herein provided for relating to such transaction have
     been complied with.

          (b)    Upon any consolidation of the Issuer with, or merger of the
Issuer into, any other Person or any conveyance, transfer, sale or lease of all
or substantially all the properties and assets of the Issuer in accordance with
subparagraph (a) above, the successor Person formed by such consolidation or
into which the Issuer is merged or to which such conveyance, transfer or lease
is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Issuer under the Fiscal Agency Agreement with the same effect
as if such successor Person had been named as the Issuer herein, and thereafter
the predecessor Person shall be relieved of all obligations and covenants under
the Fiscal Agency Agreement and this Security.

          10.    Section 7 of the Fiscal Agency Agreement, which requires the
Issuer to provide the Fiscal Agent with certain information is hereby
incorporated mutatis mutandis by reference herein.
             ------- --------

          11.    If any mutilated Security is surrendered to the Fiscal Agent
or a Paying Agent, the Issuer shall execute, and the Fiscal Agent or such Paying
Agent, as the case may be, shall authenticate and deliver in exchange therefor,
a new Security of like tenor and principal amount, bearing a number not
contemporaneously outstanding.

          If there shall be delivered to (x) the Issuer and (y) the Fiscal Agent
or a Paying Agent (i) evidence to their satisfaction of the destruction, loss or
theft of any Security and (ii) such security or indemnity as may be required by
them to save each of them and any agent of each of them harmless, then, in the
absence of notice to the Issuer or the Fiscal Agent or any such Paying Agent
that such Security has been acquired by a bona fide purchaser, the Issuer shall
execute, and upon their request the Fiscal Agent or such Paying Agent shall
authenticate and deliver in lieu of any such destroyed, lost or stolen Security,
a new Security of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

                                     D-13
<PAGE>

          Upon the issuance of any new Security under this Condition, the Issuer
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and the expenses of the Fiscal Agent or such Paying
Agent) connected therewith.

          Every new Security issued pursuant to this Condition in lieu of any
destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Issuer, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone.

          Any new Security delivered pursuant to this Condition shall be so
dated that neither gain nor loss in interest shall result from such exchange.

          The provisions of this Condition 11 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities.

          12.  Section 11 of the Fiscal Agency Agreement, which Section is
hereby incorporated mutates mutandis by reference herein, provides that, with
                    ------- --------
certain exceptions as therein provided and with the consent of the holders of a
majority in aggregate principal amount of the Outstanding Securities present at
a meeting duly called pursuant thereto or by written consent of a majority in
aggregate principal amount of all Outstanding Securities, the Issuer and the
Fiscal Agent may, but shall not be obligated to, modify, amend or supplement the
Fiscal Agency Agreement or the terms of the Securities or may give consents or
waivers or take other actions with respect thereto.  Any such modification,
amendment, supplement, consent, waiver or other action shall be conclusive and
binding on the Holder of this Security and on all future holders of this
Security and of any Security issued in exchange therefor or in lieu thereof,
whether or not notation thereof is made upon this Security.  The Fiscal Agency
Agreement and the terms of the Securities may be modified or amended by the
Issuer and the Fiscal Agent, without the consent of any holders of Securities
for the purpose of (i) adding to the covenants of the Issuer for the benefit of
the holders of Securities or (ii) surrendering any right or power conferred upon
the Issuer, or (iii) securing the Securities pursuant to the requirements of the
Securities or otherwise, or (iv) relaxing or eliminating the restrictions on
payment of principal or interest in respect of Securities in the United States
to the extent then permitted under applicable regulations of the United States
Department of the Treasury, and provided no adverse tax consequences would
result to the Holders of the Securities or (v) evidencing the succession of a
Successor Person to the Issuer and the assumption by any such Successor Person
of the covenants and obligations of the Issuer in the Securities or in the
Fiscal Agency Agreement pursuant to Condition 9 thereof or (vi) correcting or
supplementing any defective provision contained in the Securities or in the
Fiscal Agency Agreement, to all of which each holder of any Security, by
acceptance thereof, consents.

          13.  No reference herein to the Fiscal Agency Agreement and no
provision of this Security or of the Fiscal Agency Agreement shall alter or
impair the obligation of the Issuer, which is absolute and unconditional to pay
the principal of and interest on this Security at the times, place and rate, and
in the coin or currency, herein prescribed.

                                     D-14
<PAGE>

          14.  If a judgment or order is given by a court or tribunal of any
particular jurisdiction for the payment of any amounts owing under any of the
Securities to the holders thereof, such judgment or order is expressed in a
currency other than Yen, and the amount which is received (or could have been
received) by converting such other currency to Yen promptly following receipt at
the prevailing rate of exchange in a foreign exchange market reasonably selected
by such holder of Securities is less than the amount owed by the Issuer in Yen,
then the Issuer shall indemnify and hold each affected holder of Securities
harmless against the deficiency and any direct loss sustained as a result
thereof. The Issuer shall also pay the reasonable cost of the conversion but
shall not be obligated to pay any special or consequential damages.

          15.  (a)  This Security shall be governed by and construed in
accordance with the laws of the State of New York.

          (b)  The Issuer has appointed Citibank, N.A., 120 Wall Street in the
Borough of Manhattan, The City of New York (attention: Corporate Trust
Administration) and its successors as its Authorized Agent upon which process
may be served in any action arising out of or based on the Securities or this
Agreement which may be instituted in any State or Federal court in the City of
New York by the holder of any Security and expressly accepts the jurisdiction of
any such court in respect of such action.  Such appointment, which the Fiscal
Agent hereby accepts, shall be irrevocable until all amounts in respect of the
principal of (and premium, if any) and any interest due and to become due on or
in respect of all the Securities have been either paid or discharged in full,
unless and until a successor Fiscal Agent shall have been appointed as such
Authorized Agent and shall have accepted such appointment.  The Issuer shall
take any and all action, including the filing of any and all documents and
instruments, that may be necessary to continue such appointment or appointments
in full force and effect as aforesaid.  Service of process upon the Authorized
Agent at the address indicated above, as such address may be changed within the
Borough of Manhattan, The City of New York by notice given by the Authorized
Agent to the holders hereof, shall be deemed, in every respect, effective
service of process upon the Issuer.

          (c)  Notwithstanding the foregoing, any action arising out of or based
on the Securities may be instituted by the holder of any Security in any other
court of competent jurisdiction.

                                     D-15
<PAGE>

                                   EXHIBIT E

             FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR OR CEDEL

                                  CERTIFICATE

                               LEVI STRAUSS & CO.

         (Yen)20,000,000,000 4.25 percent.  Bonds due November 22, 2016

          Reference is hereby made to the Fiscal Agency Agreement, dated as of
November 22, 1996 (the "Fiscal Agency Agreement"), between Levi Strauss & Co.,
as Issuer, and Citibank, N.A. (London Branch), as Fiscal Agent.  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Fiscal Agency Agreement.

          This is to certify that, based solely on certifications we have
received in writing, by tested telex or by electronic transmission from member
organizations appearing in our records as persons being entitled to a portion of
the principal amount set forth below (our "Member Organizations") substantially
to the effect set forth in the Fiscal Agency Agreement, as of the date hereof,
(Yen)_______ aggregate principal amount of the above-captioned Securities are
beneficially owned by non-U.S. Persons and are not held for purposes of resale
directly or indirectly to a U.S. Person or to a person within the United States
or its possessions.

          As used herein, "United States" means the United States of America,
its territories and possessions, any state of the United States, and the
District of Columbia.  As used herein, U.S. Person has the meaning assigned to
it in Rule 902 under the Securities Act of 1933, as amended.

          We further certify that as of the date hereof we have not received any
notification from any of our Member Organizations to the effect that the
statements made by such Member Organizations with respect to any portion of the
part submitted herewith for exchange are no longer true and cannot be relied
upon as of the date hereof.

                                      E-1
<PAGE>

          We understand that this certification is required in connection with
certain securities laws of the United States.  If administrative or legal
proceedings are commenced or threatened in connection with which this
certification is or would be relevant, we irrevocably authorize you to produce
this certification or a copy thereof to any interested party in such
proceedings.  This certificate and the statements contained herein are made for
your benefit and the benefit of the Issuer and Goldman Sachs International as
the initial purchasers of the Securities.

Dated: ____________, 199_

                                         By:_________________________
                                            [MORGAN GUARANTY TRUST
                                            COMPANY OF NEW YORK, BRUSSELS
                                            OFFICE, as
                                            Operator of the Euroclear Clearance
                                            System][or]
                                            [CEDEL BANK, SOCIETE ANONYME]

                                      E-2
<PAGE>

                                   EXHIBIT F

              FORM OF CERTIFICATE TO BE GIVEN BY BENEFICIAL OWNERS

                                  CERTIFICATE

                               LEVI STRAUSS & CO.

         (Yen)20,000,000,000 4.25 percent.  Bonds due November 22, 2016

          Reference is hereby made to the Fiscal Agency Agreement, dated as of
November 22, 1996 (the "Fiscal Agency Agreement"), between Levi Strauss & Co.,
as Issuer, and Citibank, N.A. (London Branch), as Fiscal Agent.  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Fiscal Agency Agreement.

          This certificate relates to (Yen)_______________ aggregate principal
amount of Securities which are evidenced by the Temporary Global Security and
held with the Common Depositary through Euroclear or CEDEL or both in the name
of _______________ [insert name of holder] (the "Holder").

          In respect of such Securities, the Holder does hereby certify that as
of the date hereof, the above-captioned Securities are beneficially owned by
non-U.S. Persons and are not held for purposes of resale directly or indirectly
to a U.S. Person or to a person within the United States or its possessions.

          As used herein, "United States" means the United States of America,
its territories and possessions, any state of the United States, and the
District of Columbia.  As used herein, U.S. Person has the meaning assigned to
it in Rule 902 under the Securities Act of 1933, as amended.

          We undertake to advise you immediately by tested telex on or prior to
the date on which you intend to submit your certification relating to the
Securities held by you for our account in accordance with your operating
procedures if any applicable statement herein is not correct on such date, and
in the absence of any such notification it may be assumed that this
certification applies as of such date.

                                      F-1
<PAGE>

          We understand that this certification is required in connection with
certain securities laws in the United States.  If administrative or legal
proceedings are commenced or threatened in connection with which this
certification is or would be relevant, we irrevocably authorize you to produce
this certification or a copy thereof to any interested party in such
proceedings.  This certificate and the statements contained herein are made for
your benefit and the benefit of the Issuer and Goldman Sachs International as
the initial purchaser of the Securities.

Dated: ____________, 199_*

                                                   __________________________
                                                   Account Holder

______________________________
*     To be dated no earlier than 15 days prior to the exchange date to which
      the certification relates.

                                      F-2

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