U-Haul Leasing & Sales Co., U-Haul Co. Of Arizona,


 
EXECUTION COPY
 












                                                                                                                   AMENDED AND RESTATED CREDIT AGREEMENT
 
dated as of
 
March 12, 2007
 
among
 
 
U-HAUL LEASING & SALES CO., U-HAUL CO. OF ARIZONA,
and
U-HAUL INTERNATIONAL, INC.,
as Borrowers


U-HAUL INTERNATIONAL, INC.,
as Servicer/Manager and Guarantor


and


MERRILL LYNCH COMMERCIAL FINANCE CORP.,
as Lender
 







(Aged Truck Revolving Loan Facility)












 




 
TABLE OF CONTENTS

 

ARTICLE I
Definitions
 


                                                Page



Section 1.01. Defined Terms ................................................................................................. 1

Section 1.02. Terms Generally............................................................................................. 11

Section 1.03. Accounting Terms; GAAP.............................................................................11

ARTICLE II
The Loans
 

Section 2.01. Commitments ................................................................................................. 12

Section 2.02. The Note......................................................................................................... 12

Section 2.03. Making the Loans .......................................................................................... 12

Section 2.04. Repayment of Loans; Evidence of Debt ........................................................ 13

ARTICLE III
SECURITY

Section 3.01. Security Interest ............................................................................................. 13

Section 3.02. Release of Collateral ...................................................................................... 14

                                
                                ARTICLE IV
SERVICING AND MAINTENANCE

Section 4.01. Servicer/Manager ........................................................................................... 14

Section 4.02. Custody of Vehicle Files................................................................................ 15

Section 4.03. Maintenance ................................................................................................... 17
 
                    ARTICLE V
FEES, INTEREST, ACCOUNTS, PAYMENTS, ETC.

Section 5.01. Fees and Expenses ......................................................................................... 17

Section 5.02. Interest on the Loans ...................................................................................... 17

Section 5.03. [Reserved.] ..................................................................................................... 18

Section 5.04. Payments to be Made ..................................................................................... 18

Section 5.05. Optional Prepayments .................................................................................... 18

Section 5.06. [Reserved] ...................................................................................................... 19

Section 5.07. Illegality; Substituted Interest Rate, etc ......................................................... 19

Section 5.08. Payments of Principal and Interest; Mandatory Prepayments ....................... 19

Section 5.09. Increased Costs .............................................................................................. 20

Section 5.10. Taxes .............................................................................................................. 21


 

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TABLE OF CONTENTS
(continued)

                                            font>     Page

ARTICLE VI
REPRESENTATIONS AND WARRANTIES

Section 6.01. Organization; Powers..................................................................................... 22

Section 6.02. Authorization; Enforceability ........................................................................ 22

Section 6.03. Governmental Approvals; No Conflicts ........................................................ 22

Section 6.04. Financial Condition; No Material Adverse Change....................................... 22
 
Section 6.05. Properties; Liens and Licenses....................................................................... 23

Section 6.06. Litigation Matters........................................................................................... 23

Section 6.07. Compliance with Laws and Agreements ....................................................... 23

Section 6.08. Investment and Holding Company Status...................................................... 23

Section 6.09. Taxes .............................................................................................................. 24

Section 6.10. ERISA ............................................................................................................ 24

Section 6.11. Disclosure ...................................................................................................... 24

Section 6.12. The Collateral................................................................................................. 24

Section 6.13. Liens on the Collateral ................................................................................... 25

Section 6.14. Eligible Vehicle Collateral............................................................................. 25

Section 6.15. Insurance ........................................................................................................ 25

Section 6.16. Labor Matters................................................................................................. 25

Section 6.17. Security Documents ....................................................................................... 25

Section 6.18. Margin Regulations........................................................................................ 25

ARTICLE VII
CONDITIONS

Section 7.01. Effective Date ................................................................................................ 26

Section 7.02. Each Loan ...................................................................................................... 26

ARTICLE VIII
AFFIRMATIVE COVENANTS

Section 8.01. Financial Statements and Other Information ................................................. 27

Section 8.02. Notices of Material Events............................................................................. 28

Section 8.03. Information Regarding Collateral .................................................................. 29

Section 8.04. Existence; Conduct of Business..................................................................... 29

Section 8.05. Payment of Obligations.................................................................................. 29

Section 8.06. Maintenance of Properties ............................................................................. 29

Section 8.07. Insurance ........................................................................................................ 30
 

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TABLE OF CONTENTS
(continued)


 

                                                Page


 

Section 8.08. Books and Records; Inspection Rights .......................................................... 30

Section 8.09. Compliance with Laws and Agreements ....................................................... 30

Section 8.10. Use of Proceeds.............................................................................................. 30

Section 8.11. Further Assurances......................................................................................... 30

Section 8.12. Casualty.......................................................................................................... 31

Section 8.13. Interest Rate Protection.................................................................................. 31
 

ARTICLE IX
NEGATIVE COVENANTS

Section 9.01. Change in Control .......................................................................................... 31

Section 9.02. Use of Collateral ............................................................................................ 31

Section 9.03. Negative Pledge ............................................................................................. 32

Section 9.04. Limitations on Fundamental Changes ........................................................... 32

ARTICLE X
EVENTS OF DEFAULT

Section 10.01. Events of Default ........................................................................................... 32

Section 10.02. Consequences of an Event of Default ............................................................ 34

ARTICLE XI
RESERVED

Section 11.01. Reserved......................................................................................................... 34
 
                                ARTICLE XII
                    MISCELLANEOUS

Section 12.01. Notices ........................................................................................................... 34

Section 12.02. Waivers; Amendments................................................................................... 35

Section 12.03. Expenses; Indemnity; Damage Waiver.......................................................... 35

Section 12.04. Successors and Assigns.................................................................................. 36

Section 12.05. Survival .......................................................................................................... 38

Section 12.06. Counterparts; Integration; Effectiveness........................................................ 38

Section 12.07. Severability .................................................................................................... 38

Section 12.08. Right of Setoff................................................................................................ 38

Section 12.09. Governing Law; Jurisdiction; Consent to Service of Process........................ 39

Section 12.10. WAIVER OF JURY TRIAL.......................................................................... 39

Section 12.11. Headings ........................................................................................................ 40

Section 12.12. Confidentiality ............................................................................................... 40
 


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TABLE OF CONTENTS
(continued)


 

                                                    Page


 

Section 12.13. Joint and Several Liability of Borrowers. ...................................................... 40
 


SCHEDULES:
 

Schedule 6.04 - Liabilities
Schedule 6.15 - Insurance
 

EXHIBITS:

Exhibit A Form of Assignment and Acceptance
Exhibit B Form of Guarantee Agreement
Exhibit C Form of Borrowing Request
Exhibit D Form of Borrowing Base Certificate
Exhibit E  Form of Monthly Settlement Report
Exhibit F Form of Note
Exhibit G Market Value
Exhibit H [Reserved]
Exhibit I [Reserved]
Exhibit J [Reserved]
Exhibit K Wire Instructions
 



ANNEXES
 

Annex I Eligibility Requirements



 
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AMENDED AND RESTATED CREDIT AGREEMENT, dated as 60;of March 12,
2007, (the Agreement ”) among U-HAUL LEASING & SALES CO., a Nevada corporation, as a
Borrower,  U-HAUL  CO.  OF  ARIZONA,  an  Arizona  corporation,  as  a  Borrower,  U-HAUL
INTERNATIONAL,  INC.,  a  Nevada  corporation,  as  a  Borrower,  as  Servicer/Manager  and  as
Guarantor, and MERRILL LYNCH COMMERCIAL FINANCE CORP., as Lender.
 

Recitals
 

WHEREAS, the parties hereto are party to a certain Credit Agreement, dated as of
June 28, 2005 (the “Original Credit Agreement”); and

WHEREAS,  the  parties  to  the  Original  Credit  Agreement  desire  to  amend  and
restate the Original Credit Agreement to effect certain amendments thereto;

NOW, THEREFORE, the parties hereto agree as follows:
 
                                        ARTICLE I
 
Definitions
 

Section 1.01. Defined  Terms.  As  used  in  this  Agreement,  the  following  terms
have the meanings specified below:

Adjusted  LIBO  Rate means, with respect to any Loan for any Interest Period,
an  interest  rate  per  annum  (rounded  upwards,  if  necessary,  to  the  next  1/100  of  1%)  equal  to
(a) LIBOR for such Interest Period multiplied by (b) the Statutory Reserve Rate.

Advance Rate means 65%; provided, however, that if EBIDTA for UHI falls 
below $300,000,000 for any fiscal year as reported on AMERCO’s annual report on Form 10-K,
then the “Advance Rate” will be 50%.

Affiliate means, with  respect to a specified Person, another Person that directly,
or  indirectly  through  one  or  more  intermediaries,  Controls  or  is  Controlled  by  or  is  under
common Control with the Person specified.

AMERCOmeans AMERCO, a Nevada corporation.
 
Assignment  and  Acceptance means an assignment and acceptance entered into 
by the Lender and an assignee (with the consent of the Borrowers and the Lender if required by
           Section 12.04), and accepted by the Lender, in the form of Exhibit A or any other form approved 
           by the Lender.

Black Bookmeans the National Auto Research Black Book Guide published by
Hearst Corporation from time to time.

Board means  the  Board  of  Governors  of  the  Federal  Reserve  System  of  the
United States of America.




 
Borrowers means, collectively, jointly and severally, U-Haul Leasing & Sales
Co.,  a  Nevada  corporation,  U-Haul  Co.  of  Arizona,  an  Arizona  corporation  and  U-Haul
International, Inc., a Nevada corporation.

Borrowing  Base means, as of any date, the lesser of (i) the product of (a) the
Advance Rate and (b) the Market Value of the Eligible  Vehicle  Collateral,  in  each case  as  of
such date, or (ii) the Facility Commitment Amount as of such date.

Borrowing  Base  Certificate means  an  Officer’s  Certificate  of  the  Borrowers    
containing a calculation of the Borrowing Base, including a Vehicle Schedule, and substantially
in the form of Exhibit D or such other form as shall be approved by the Lender.

Borrowing Base Deficiency means, as of any date, the amount, if any, by which
the Outstanding Loans exceed the Borrowing Base.

Borrowing Request means a request by the Borrowers for a Loan in 
accordance with  Section 2.03  and  substantially  in  the  form  of  Exhibit  C  or  such  other  form  
as  shall  be approved by the Lender.

Business  Day means  any  day  that  is  not  a  Saturday,  Sunday  or  other  day  on
which  commercial  banks  in  New  York,  New  York,  Reno,  Nevada  or  Phoenix,  Arizona  are
authorized or required by law to remain closed.

Certificate of Title means a certificate of title of a Vehicle issued in paper form
by the relevant governmental department or agency in the jurisdiction in which the Vehicle is
registered,  or  a  record  maintained  by  such  governmental  department  or  agency  in  the  form of information stored in electronic media; provided, that to the extent th at a certificate of title in
paper  form  or  such  record  stored  on  electronic  media  has  not  been  issued  or  is  not  being
maintained, the application (or copy thereof) for the foregoing.

Change in Control means (a) any “person” or “gro up” (within the meaning of
Section 13(d) and 14(d) of the Exchange Act), other than Permitted Holders, that becomes the
 beneficial owner (as defined in  Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, of 50%, or more, of the Capital Stock of any of the Borrowers having the right to vote
for the election of members of the Board of Directors or (b majority of the members of the
Board of Directors do not constitute Continuing Directors.

Change in Law means (a) the adoption of any law, rule or reg ulation after the
date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application  thereof  by  any  Governmental  Authority  after  the  date  of  this  Agreement  or  (c)
compliance  by  the  Lender  (or,  for  purposes  of  Section  5.09(b),  by  any  lending  office  of  the
 Lender or by the Lender’s  ;holding company) with any request, guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after the date of this
 Agreement.

Closing Datemeans March 12, 2007.

Codemeans the Internal Revenue Code of 1986, as amended from time to time.
 



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Collateral” has the meaning set forth in the Security Agreement.

Commitment means, the commitment, of the Lender to make Loans hereunder
up to the Facility Commitment Amount.

Commonly  Controlled  Entity means  an  entity,  whether  or  not  incorporated,
which is under common control with a Loan Party within the meaning of Section 4001 of ERISA
or is a part of a group which includes a Loan Party and which is treated as a single employer
under Section 414(b) or (c) of the Code or, for the purposes of the Code, Section 414(m) or (o)
of the Code.

Concentration  Account means  the  account  established  with  the  Concentration
Account Bank in the name of UHI bearing account No. 42-4903.

Concentration  Account  Bank means  JPMorgan  Chase  Bank,  N.A.,  and  its
successors,  or  another  depositary  institution  mutually  acceptable  to  the  Lender  and  the
Servicer/Manager.


            “Continuing Directorsmeans the directors of AMERCO on the Original Closing
            Date and each other director of AMERCO, if such othe r directors nomination for 
            election to the Board  of  Directors  of  AMERCO  is  recommended  by  a  majority  of  the  
            then  Continuing Directors.

Control means the possession,  directly or indirectly, of the power to direct or
cause  the  direction  of  the  management  or  policies  of  a  Person,  whether  through  the  ability  to
exercise voting power, by contract or otherwise.  “Controlling” and Controlled h ave meanings
correlative thereto.

 
Custodian means the Servic font>er/Manager in its capacity as custodian pursuant to
Section 4.02.

 
Dealership  Contract means a U-Haul dealership contract between a subsidiary
of UHI, on one hand, and a named U-Haul dealer, on the other.


Default means any event or condition which constitutes an Event of Default or
which upon notice, lapse of time or  both would, unless cured or waived, become an Event  of
Default.

Deposit Datemeans, with respect to each Payment Date, the 11th calendar 160;day
of the preceding month, or if such day is not a Business Day, the next Business Day immediately
following such calendar day.

Dollars” or “$means the lawful money of the United States of America.

Effective Date means the date on which the conditions specified in Section 7.01
are satisfied (or waived in accordance with Section 12.02).
 

 

3



 
Eligible  Vehicle  Collateral means,  as  of  any  date,  a  Vehicle  pledged  to  the
Lender  under  the  Security  Agreement  as  to  which  the  conditions  set  forth  on  Annex  I  are
satisfied as of such date.

ERISA means  the  Employee  Retirement  Income  Security  Act  of  1974,  as
amended from time to time.

ERISA Affiliatemeans any trade or business (whether or not incorporated) that,
together with any Borrower, is treated as a single employer under Section 414(b) or (c) of the
Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as
a single employer under Section 414 of the Code.

ERISA  Event means (a) any “reportable event, as defined in Section 4043 of
ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which
the  30-day  notice  period  is  waived);  (b)  the  existence  with  respect  to  any  Plan  of  an
“accumulated  funding  deficiency”  (as  defined  in  Section 412  of  the  Code  or  Section 302  of
ERISA),  whether  or  not  waived;  (c)  the  filing  pursuant  to  Section 412(d)  of  the  Code  or
Section 303(d) of ERISA of an application for a waiver of the 60;minimum funding standard with respect to any Plan; (d) the incurrence by any Loan Party or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by
any  Loan  Party  or  any  ERISA  Affiliate  from the  PBGC  or  a  plan  administrator  of any  notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by any Loan Party or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the
receipt  by  any  Loan  Party  or  any  ERISA  Affiliate  of  any  notice,  or  the  receipt  by  any
Multiemployer  Plan  of  any  Loan  Party  or  any  ERISA  Affiliate  of  any  notice,  concerning  the
imposition  of  Withdrawal  Liability  or  a  determination  that  a  Multiemployer  Plan  is,  or  is
expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

“Event of Default” has the meaning assigned to such term in Section 10.01.
 

Facility means  the  committed  loan  facility  offered  by  the  Lender  to  the
Borrowers pursuant to this Agreement.

Facility Commitment Amount” means $100,000,000.

Fee  Letter means  the  letter  agreement,  dated  as  of  the  Closing  Date,  by  the
Lender and the Borrowers.

Financial Officer means, with respect to any Person, the chief executive officer,
the chief financial officer, principal accounting officer, treasurer, assistant treasurer or controller
of such Person.

GAAP means, subject to Section 1.03, generally accepted accounting principles
in the United States of America.

Governmental  Authority means  the  government  of  the  United  States of America, any other nation or any political subdivision thereof, whether state or local, and any
 



4



 
agency, authority, instrumentality, regulatory 160;body, court, central bank or other entity exercising
executive,  legislative,  judicial,  taxing,  regulatory  or  administrative  powers  or  functions  of  
or pertaining to government.

Guarantee of  or  by  any  Person  (the  “guarantor”)  means  any  obligation,
contingent  or  otherwise,  of  the  guarantor  guaranteeing  or  having  the  economic effect of
guaranteeing any Indebtedness or other  ;obligation of any other Person (the primary bligor”)
in any manner, whether directly or indirectly, and including any obligation of the guarantor, 
direct
or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of)
 such  Indebtedness  or  other  obligation  or  to  purchase  (or  to  advance  or  supply  funds for the
urchase of) any security for the payment thereof, (b) to purchase or lease property, securities or
services for the purpose of assuring the owner of such Indebtedness or other obligation of the
payment thereof, (c) to maintain working capital, equity capital or any other financial statement
condition  or  liquidity  of  the  primary  obligor  so  as  to  enable  the  primary  obligor  to  pay  such
 Indebtedness or other obligation or 160;(d) as an account party in respect of any letter of credit or
letter  of  guaranty  issued  to  support  such  Indebtedness  or  obligation;  provided,  that  the  term
Guarantee  shall  not  include  endorsements  for  collection  or  deposit  in  the  ordinary  course  of
business.

Guarantee  Agreement means  the  Guarantee  made  by  UHI  in  favor  of  the
Lender, in the form of Exhibit B.

Indebtedness means,  with  respect  to  any  Person,  without  duplication,  (i)  all
 obligations of such Person for  borrowed money, (ii) all obligations of such Person evidenced by
bonds, debentures, notes or similar instruments, (iii) all indebtedness of others secured by (or for
which  the  holder  of  such  Indebtedness  has  an  existing  right,  contingent  or  otherwise,  to  be
secured  by)  any  Lien  on  property  owned  or  acquired  by  such  Person,  whether  or  not  the
 obligations secured thereby have been assumed (only to the extent of the fair market value of
such  asset  if  such  Indebtedness  has  not  been  assumed  by  such  Person),  (iv)  all  Guarantees  of
 such Person, (v) all capitalized lease obligations of such Person and (vi) all obligations of such
Person as an account party in respect of letters of credit and similar instruments issued for the
account of such Person.

Indemnitee” has the meaning set forth in Section 12.03(b).

Interest  Period means with respect to any Loan and Payment Date, in the case
of (i) the first Payment Date for such  Loan, the period from and including the related Loan Date
to but excluding such first Payment Date and (ii) any other Payment Date, the period from and
including  each  Payment  Date  to  but  excluding  the  next  ensuing  Payment  Date;  provided,
however,  that  the  initial  Interest  Period  shall  be  the  period  from  and  including  the  Original
Closing Date to but excluding the first Payment Date.

Interest  Rate means,  with  respect  to  any  Loan  and  Interest  Period,  subject  to
Section 5.07,  a  percentage  (in  each  case  computed  on  the  basis  of  the  actual  number  of  days
elapsed, but assuming a 360-day year) equal to:

 

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(i) provided that no Event of Default has occurred and is continuing,
the sum of (A) the Adjusted LIBO Rate for such Interest Period and (B) the Margin; and

(ii) upon  the  occurrence  and  during  the  continuation  of  an  Event  of
Default, the sum of (A) the Adjusted LIBO Rate for such Interest Period, (B) the Margin
and (C) an additional 2.00% per annum.

Lendermeans MLCFC, together with its successor and any assigns.
 

LIBOR means,  with  respect  to  each  Interest  Period,  the  rate  of  interest  per
annum  (rounded  upwards,  if  necessary,  to  the  nearest  1/100th  of  1%)  for  Dollar deposits in
 London with a duration of one month, at or about 8:00 a.m. on the related LIBOR Determination
Date as such rate is specified on Bloomberg Money Markets Page 28, or, if such page ceases to
display such information, then such other page as may replace it on that service for the purpose
of display of such information, or, if such service ceases to display such information, then on
Telerate Page 3750. If such rate cannot be determined, then LIBOR means, with respect to such
Rate Period, the arithmetic mean of the ra tes of interest (rounded upwards, if necessary, to the
nearest 1/100th of 1%) offered to two prime banks in the London interbank market (selected by
the Lender) of Dollar deposits with a duration of one month at or about 8:00 a.m. on the related
LIBOR Determination Date.

LIBOR  Business  Day means  a  Business  Day  on  which  trading  in  Dollars  is
conducted by and between banks in the London interbank market.

LIBOR  Determination  Date means,  with  respect  to  any  Interest  Period,  the
second LIBOR Business Day prior to the first day of such Interest Period.

Lien means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge  or security interest in, on or of such asset, (b) the
interest  of  a  vendor  or  a  lessor  under  any  conditional  sale  agreement,  capital  lease  or  title
 retention agreement (or any financing lease having substantially the same economic effect as any
of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

Loan  Date means any date on which a Loan is made to the Borrowers by the
Lender pursuant to this Agreement.

Loan  Documents means  this  Agreement,  the  Note,  the  Guarantee  Agreement,
the Fee Letter and the Security Documents.

Loan Partiesmeans the Guarantor, the Servicer/Manager and the Borrowers.
 
            “Loans means an advance made to the Borrowers by the Lender pursuant to this
         Agreement.
 
Margin” has the meaning specified in the Fee Letter.

Margin Stock” has the meaning set forth in Regulation U of the Board.


 

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Market  Value means,  on  any  date  of  determination,  for  any  Eligible  Vehicle
Collateral  or  the  pool  of  Eligible  Vehicle  Collateral,  the  value  specified  in  Exhibit  G  for  the
applicable  vehicle  model,  as  amended  from  time  to  time  in  writing  in  the  Lender’s  sole
discretion.

Material  Adverse  Change means  a  material  adverse  change  in  the  business,
operations or condition, financial or otherwise, taken as a whole, of the Borrowers or AMERCO.

Material Adverse Effect means a material adverse effect on (a) the business,
condition (financial or otherwise), operations or performance of the Borrowers, (b) the ability of
any  Borrower  or  any  other  Loan  Party  to  perform  any  of  its  obligations  under  any Loan
 Document,  (c)  the  legality,  validity,  binding  effect  or  enforceability  of  this  Agreement  or  any
 other Loan Document or (d) the Collateral or the first priority perfected security interest of the
Lender in the Collateral.
 
MLCFC means  Merrill  Lynch  Commercial  Finance  Corp.,  a  Delaware corporation.
Monthly Settlement Reportmeans a report substantially in the form set forth on Exhibit E.

Multiemployer  Plan means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

Net  Proceeds means,  with  respect  to  any  casualty  or  condemnation  event,
(a) the cash proceeds received in respect  of  such  event  including (i) in the case of a casualty,
insurance proceeds, and (ii) in the case of a condemnation or similar event, condemnation awards and similar payments, net of (b) the sum of all reasonable fees and out-of-pocket expenses paid
by the Borrowers to third parties (other than Affiliates) in connection with such event.

Non-Use Fee” has the meaning set forth in Section 5.01(b).

Note means  the  Note,  dated  the  Closing  Date,  executed  by  the  Borrowers,
payable  to  the  order  of  the  Lender,  in  the  maximum  principal  amount  of  the  Facility
Commitment Amount, in substantially the form of Exhibit F.

Obligationsmeans all obligations secured under the Loan Documents.

Original Closing Datemeans June 28, 2005.

Outstanding  Loans means,  as  of  any  date,  the  unpaid  principal  amount  of  all
 Loans outstanding hereunder on such& #160;date, after giving effect to all repayments of Loans and the
making of new Loans on such date.

Participant” has the meaning set forth in Section 12.04(e).

 
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Payment Datemeans the 10th calendar day of each month, or if such day is not
a Business Day, the next Business Day immediately following such calendar day, commencing
with the first such date to occur in July 2005.

PBGC means the Pension Benefit Guaranty Corporation referred to and defined
in ERISA and any successor entity performing similar functions.

Permitted Encumbrancesmeans:

(a) Liens  imposed  by  law  for  taxes,  assessments,  governmental  charges  or
similar claims that are not yet due or are being contested in compliance with Section 8.05;

(b) statutory or common law Liens of landlords and carriers, warehousemen,
mechanics,  suppliers,  materialmen,  repairmen  and  other  similar  Liens,  arising  in  the  ordinary
 course of business and securing  obligations that are not yet delinquent or are being contested in
compliance with Section 8.05;

(c) Liens  incurred  or  deposits  made  in  the  ordinary  course  of  business  in
connection  with  workers’  compensation,  unemployment  insurance  and  other  types  of  social
security;

(d) Liens  incurred  or  deposits  made  to  secure  the  performance  of  tenders,
 bids, leases, statutory or regulatory obligations, surety and appeal bonds, government contracts,
 performance and return-of-money bonds and other obligations of a like nature, in each case in
the ordinary course of business, and a bank’s unexercised right of set-off with respect to deposits
made in the ordinary course;

(e) judgment liens in respect of judgments that do not constitute an Event of
Default under clause (j) of Section 10.01;

(f) interests of lessees under leases or subleases granted by the Borrowers as
lessor that do not materially interfere with the ordinary course of business of the Borrowers;

(g) interests  of  licensees  under  licenses  or  sublicenses  granted  by  the
 Borrowers as licensor that do not materially interfere with the ordinary course of business of the
Borrower;

(h) any  interest  or  title  of  a  lessor  in  any  property  subject  to  any  capital  or
operating lease otherwise not entered  ;into in violation of the Loan Documents or in any property
not constituting Collateral; and

(i) any  interest  or  title  of  a  licensor  in  any  property  subject  to  any  license
otherwise not entered into in violation of the Loan Documents.

Permitted Holdermeans Edward J. Shoen, Mark V. Shoen, James P. Shoen and
 their Family Members, and their Family Trusts.  As used in this definition, “Family Member”
 means, with respect to any individual, the spouse and lineal descendants (including 
children and grandchildren by adoption) of such individual, the spouses of each such lineal 
descendants, and


 
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the  lineal  descendants  of  such  Persons;  and  Family  Trusts”  means,  with  respect  to  any individual, any trusts, limited partnerships or other entities established for the primary benefit of,
the executor or administrator of the estate of, or other legal representative of, such individual.

Person means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

Plan means at a particular time, any employee benefit plan which is covered by
Title IV of ERISA and in respect of which a Loan Party or a Commonly Controlled Entity is (or,
if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be)
an “employer” as defined in Section 3(5) of ERISA.

Prime Ratemeans the rate of interest per annum published from time to time font> in
the “Money Rates” column (or any successor column) of The Wall Street em> Journal as the prime rate or, if such rate shall cease to be so published or is not available for any reason, the rate of interest publicly announced from time to time by any money center” bank based in New York City selected by the Administrative Agent for the purpose of quoting such rate, provided such
commercial  bank  has  a  combined  capital  and  surplus  and  undivided  profits  of  not  less  than
$500,000,000.  Each  change  in  the  Prime  Rate  shall  be  effective  from  and  including  the  date
such change is published.

Records Location List” has the meaning set forth in Section 4.02(c).

Requirement of Law means, as to any Person, any law, statute, rule, treaty,
regulation or determination of an arbitrator, court or other Governmental Authority, in each case
applicable to or binding upon  such Person or any of its properties or to which such Person or any
of its properties may be bound or affected.

Security Agreementmeans the Security Agreement, dated as of June 28, 2005,
by  and  between  the  Borrowers  and  the  Lender,  as  amended  by  the  Amended  and  Restated
Security Agreement, dated as of March 12, 2007.

Security Documents means the Security Agreement, and each financing
statement, Certificate of Title, pledge, endorsement or other document or instrument delivered in
connection therewith.

Servicer/Manager” shall mean UHI.

Statutory  Reserve  Rate means  a  fraction  (expressed  as  a  decimal),  the
numerator of which is the number one and the denominator of which is the number one minus
the aggregate of the maximum reserve percentages font> (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board to which the Lender
(if subject to regulation by the Board) is subject with respect to the Adjusted LIBO Rate, for
eurocurrency funding (currently referred to 160;as “Eurocurrency Liabilities” in Regulation D of the
Board). Such reserve percentages shall include those imposed pursuant to such Regulation D.
Loans  shall  be  deemed  to  constitute  eurocurrency  funding  and  to  be  subject  to  such reserve
requirements without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to the Lender under such Regulation D or any comparable regulation.
 



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            The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any
            change in any reserve percentage.

Subsidiary means,& #160;as to any Person, a corporation, partnership or other entity of
which  shares  of  stock  or  other  ownership  interests  having  ordinary  voting power (other than
 stock or such other ownership interests having such power only by reason of the happening of  a
contingency) to elect a majority of the board of directors or other managers of such corporation,
partnership  or  other  entity  are  at  the  time  owned,  or  the  management  of  which  is  otherwise
controlled, directly or indirectly through one or more intermediaries, or both, by such Person.

Targeted Principalmeans, with respect to any Deposit Date, an amount equal to
the difference, if any, between the Outstanding Loans on such Deposit Date and the Borrowing Base as of the related Payment Date; provided, however, that upon the occurrence of an Event of
Default, the Targeted Principal shall equal the principal balance of the Outstanding Loans.

Taxes means  with  respect  to  any  Person  any  and  all  present  or  future  taxes,
levies,  imposts,  duties,  deductions,  charges  or  withholdings  imposed  by  any  Governmental
Authority  excluding,  such  taxes  (including  income  or  franchise  taxes)  as  are  imposed  on  or
measured by such Person’s net income.

Termination Datemeans the Payment Date in March 2011.

Transactionsmeans  the  execution,  delivery  and  performance  by  each  Loan
Party of the Loan Documents to which it is to be a party, the borrowing of Loans and the use of
the proceeds thereof.

Truck  Age means,  for  any  Vehicle  on  any  date  of  determination,  (i)  if  such
determination is made at any time during the period from January through June, inclusive, of any
 year then the difference between the current year and the model year of such Vehicle and (ii) if
such determination is made at any time during the period from July through December, inclusive,
of any year then the difference between the current year and the model year of such Vehicle plus
0,5.
 
UCC means  the  Uniform  Commercial  Code  as  in  effect  in  the  State  of  New
York as of the date hereof.

Unused Fee Rate” has the meaning specified in the Fee Letter.

UHImeans U-Haul International, Inc., a Nevada corporation.

Vehicle means a m otor vehicle owned by one of the Borrowers and constituting
part of the Borrowers’ fleet of rental assets.

VehicleFilesmeans, with r espect to each Vehicle, (i) the original Certificate 
ofTitle (or an original or certified copy of the application for a Certificate of Title) and all related
documents retained on file by the Servicer/Manag er, in accordance with its usual and customary
business practices, evidencing the ownership of the Vehicle and, from and after the date required
pursuant  to  clause  (vi)  of  Annex  I  hereto,  the  Lien  of  the  Lender;  and  (ii)  any  and  all  other


 

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            docum