Document:

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                                                                  Execution Copy

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                           LOAN AND SECURITY AGREEMENT

                                  BY AND AMONG

                                     AMERCO,
                              A NEVADA CORPORATION
                                       AND

              EACH OF ITS SUBSIDIARIES THAT ARE SIGNATORIES HERETO,
                                  AS BORROWERS,

                    THE LENDERS THAT ARE SIGNATORIES HERETO,
                                 AS THE LENDERS,

                                       AND

                           WELLS FARGO FOOTHILL, INC.
                              AS THE LEAD ARRANGER,
          ADMINISTRATIVE AGENT, SYNDICATION AGENT AND COLLATERAL AGENT

                            DATED AS OF MARCH 1, 2004

================================================================================

<PAGE>

                           LOAN AND SECURITY AGREEMENT

                  THIS LOAN AND SECURITY AGREEMENT (this "Agreement"), is
entered into as of March 1, 2004, between and among, on the one hand, the
lenders identified on the signature pages hereof (such lenders, together with
their respective successors and assigns, are referred to hereinafter each
individually as a "Lender" and collectively as the "Lenders"), WELLS FARGO
FOOTHILL, INC., a California corporation, as the lead arranger, administrative
agent, syndication agent and collateral agent for the Lenders ("Agent") and, on
the other hand, AMERCO, a Nevada corporation ("Parent"), and each of Parent's
Subsidiaries identified on the signature pages hereof (such Subsidiaries,
together with Parent, are referred to hereinafter each individually as a
"Borrower," and individually and collectively, jointly and severally, as
"Borrowers").

                                    RECITALS

                  WHEREAS, Parent and its wholly-owned subsidiary Amerco Real
Estate Company, a Nevada corporation ("AREC") (together with Parent,
collectively the "Debtors", and each individually a "Debtor"), are reorganized
debtors in jointly administered Case No. BK-03-52103-GWZ (the "Chapter 11 Case")
in the United States Bankruptcy Court for the District of Nevada (the "Court");
and

                  WHEREAS, the Debtors are parties to that certain Senior
Secured, Super-Priority Debtor-in-Possession Loan and Security Agreement dated
as of August 15, 2003 among the Debtors, Wells Fargo Foothill, Inc., as agent,
and the various lenders party thereto (the "DIP Lenders") (as amended, restated,
supplemented or otherwise modified from time to time prior to the date hereof,
the "DIP Loan Agreement") and pursuant to which the DIP Lenders provided the
Debtors with financing for the Chapter 11 Case; and

                  WHEREAS, the Debtors have filed that certain Joint Plan of
Reorganization and that certain Disclosure Statement Concerning the Debtors'
First Amended Joint Plan of Reorganization under Chapter 11 of the United States
Bankruptcy Code, each dated as of November 26, 2003 (together with any amendment
or modifications thereto consented to by the Required Lenders as defined herein,
collectively, the "Reorganization Plan"); and

                  WHEREAS, the Reorganization Plan was confirmed pursuant to
that certain Order Confirming First Amended Joint Plan of Reorganization entered
by the Court in the Chapter 11 Case on February 20, 2004 (the "Confirmation
Order"), after a final hearing under Bankruptcy Rule 3020, which Confirmation
Order is reasonably satisfactory in form and substance to Agent and the Required
Lenders (as defined herein), and

                  WHEREAS, as set forth in the Reorganization Plan and
Confirmation Order, the Debtors have requested that Agent and the Lenders
provide the Debtors and the other Borrowers with financing for the
implementation of the Reorganization Plan and other general corporate purposes;
and

<PAGE>

                  WHEREAS, Agent and the Lenders are willing to provide such
financing to Borrowers in accordance with and subject to the terms and
conditions set forth in this Agreement:

                                    AGREEMENT

                  NOW, THEREFORE, in consideration of the agreements, provisions
and covenants set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Borrowers, Agent and
the Lenders do hereby agree as follows:

1.       DEFINITIONS AND CONSTRUCTION.

         1.1      DEFINITIONS. As used in this Agreement, the following terms
shall have the following definitions:

                  "Account Debtor" means any Person who is or who may become
obligated under, with respect to, or on account of, an Account, Chattel Paper,
or a General Intangible.

                  "Accounts" means any Person's now owned or hereafter acquired
right, title, and interest with respect to "accounts" as such term is defined in
the Code, and any and all Supporting Obligations in respect thereof.

                  "ACH Transactions" means any cash management or related
services (including the Automated Clearing House processing of electronic funds
transfers through the direct Federal Reserve Fedline system) provided by a Bank
Product Provider for the account of Administrative Borrower or its Subsidiaries.

                  "Additional Documents" has the meaning set forth in Section
4.4.

                  "Administrative Borrower" has the meaning set forth in Section
17.9.

                  "Advances" has the meaning set forth in Section 2.1.

                  "Affiliate" means, as applied to any Person, any other Person
who, directly or indirectly, controls, is controlled by, or is under common
control with, such Person. For purposes of this definition, "control" means the
possession, directly or indirectly, of the power to direct the management and
policies of a Person, whether through the ownership of Stock, by contract, or
otherwise; provided, however, that, for purposes of Section 7.14 hereof: (a) any
Person which owns directly or indirectly 10% or more of the securities having
ordinary voting power for the election of directors or other members of the
governing body of a Person or 10% or more of the partnership or other ownership
interests of a Person (other than as a limited partner of such Person) shall be
deemed to control such Person, (b) each director (or comparable manager) of a
Person shall be deemed to be an Affiliate of such Person, and (c) each
partnership or joint venture in which a Person is a partner or joint venturer
shall be deemed to be an Affiliate of such Person. For the avoidance of doubt,
SAC Holding shall not be deemed to be an Affiliate of Borrowers for purposes of
this Agreement.

                                       2
<PAGE>

                  "Affiliate Contracts" means each of the agreements set forth
on Schedule A-1 which shall include any agreement to which any Loan Party is a
party, on the one hand, and any Affiliate of such Loan Party is a party, on the
other hand, as such agreements are in place as of the Closing Date.

                  "Agency Letter" means that certain letter agreement executed
and delivered by Roberta Holmes, Joan Gibson (or any other person acceptable to
Agent from time to time having similar employee responsibilities) and Agent, as
amended, modified or replaced from time to time, the form and substance of which
are reasonably satisfactory to Agent.

                  "Agent" means Foothill, solely in its capacity as
administrative agent and collateral agent for the Lenders hereunder, and any
successor thereto.

                  "Agent Advances" has the meaning set forth in Section
2.3(e)(i).

                  "Agent's Account" means the account identified on Schedule
A-2.

                  "Agent's Liens" means the Liens granted by Borrowers and
Guarantors to Agent under this Agreement or the other Loan Documents.

                  "Agent-Related Persons" means Agent, together with its
Affiliates, officers, directors, employees, and agents.

                  "Agreement" has the meaning set forth in the preamble hereto.

                  "Agreement to Indemnify" means that certain agreement to
indemnify entered into by Parent in connection with the execution of the SAC
Participation and Subordination Agreement.

                  "Anti-Terrorism Laws" means any laws relating to terrorism or
money laundering, including Executive Order No. 13224 and the USA Patriot Act.

                  "Applicable Laws" means, with respect to any Person, those
laws, rules, regulations, statutes and ordinances that apply to that Person or
its business, undertaking, property or securities.

                  "Applicable Margin" means, as of any date of determination,
(a) if the relevant Obligation is a Term Loan that is a Base Rate Loan, 1.50%,
(b) if the relevant Obligation is a Term Loan that is a LIBOR Rate Loan, 4.00%,
or (c) for all other relevant Obligations, the applicable percentage indicated
below that corresponds to the Consolidated EBITDA for the 12-month period ended
immediately prior to the date of determination:

<TABLE>
<CAPTION>
                                              Applicable      Applicable Margin    Applicable
                  Consolidated EBITDA          Margin for     for Advances that     Margin for
                 as of the end of each     Advances that are   are LIBOR Rate    Letter of Credit
Pricing Level        fiscal quarter         Base Rate Loans        Loans              Fee
-------------  --------------------------  -----------------  -----------------  ----------------
<S>            <C>                         <C>                <C>                <C>
Level I        Less than or equal to             1.50%              4.00%            4.00%
</TABLE>

                                       3
<PAGE>

<TABLE>
<CAPTION>
                                              Applicable      Applicable Margin    Applicable
                  Consolidated EBITDA          Margin for     for Advances that     Margin for
                 as of the end of each     Advances that are   are LIBOR Rate    Letter of Credit
Pricing Level        fiscal quarter         Base Rate Loans        Loans              Fee
-------------  --------------------------  -----------------  -----------------  ----------------
<S>            <C>                         <C>                <C>                <C>
               $275,000,000

Level II       Greater than $275,000,000,        1.25%              3.75%            3.75%
               but less than or equal to
               $300,000,000

Level III      Greater than $300,000,000         1.00%              3.50%            3.50%
</TABLE>

The Applicable Margin for each Advance and the Letter of Credit Fee shall be
determined as of the end of each fiscal quarter by reference to the Consolidated
EBITDA for the 12-month period then ending; provided, however, that (a) no
change in the Applicable Margin shall be effective until 3 Business Days after
the date on which Agent receives financial statements pursuant to Section
6.3(a), and a certificate of the chief financial officer of Parent demonstrating
such amount, attaching thereto a schedule in form reasonably satisfactory to
Agent of the computations used by Parent in determining such Consolidated EBITDA
for such preceding 12 month period ending as of the end of the most recently
ended fiscal quarter, and (b) the Applicable Margin shall be the interest rate
margin set forth for Level I above with respect to the applicable Advances and
Letter of Credit Fee, respectively, (i) from the Closing Date through and
including the second Business Day after Agent receives the information required
by clause (a) of this proviso for the fiscal quarter ending September 30, 2004,
(ii) if Parent has not submitted to Agent the information described in clause
(a) of this proviso as and when required under Section 6.3(a), for so long as
such information has not been received by Agent, and (iii) at the election of
Agent or the Required Lenders, upon the occurrence and during the continuation
of any Event of Default (whether or not the Default Rate of interest shall then
be in effect).

                  "Applicable Prepayment Premium" means, as of any date of
determination, an amount equal to (a) during the period of time from and after
the date of the execution and delivery of this Agreement up to (but excluding)
the date that is the first anniversary of the Closing Date, 2.00% times the sum
of (i) the Maximum Revolver Amount, plus (ii) the outstanding principal balance
of the Term Loan on the date immediately prior to the date of determination, (b)
during the period of time from and including the date that is the first
anniversary of the Closing Date up to (but excluding) the date that is the
second anniversary of the Closing Date, 1.50% times the sum of (i) the Maximum
Revolver Amount, plus (ii) the outstanding principal balance of the Term Loan on
the date immediately prior to the date of determination, and (c) during the
period of time from and including the date that is the second anniversary of the
Closing Date up to (and including) the date that is the third anniversary of the
Closing Date, 1.00% times the sum of (i) the Maximum Revolver Amount, plus (ii)
the outstanding principal balance of the Term Loan on the date immediately prior
to the date of determination. For the avoidance of doubt, the Applicable
Prepayment Premium shall be 0% after the date that is the third anniversary of
the Closing Date.

                                       4
<PAGE>

                  "AREC" has the meaning set forth in the recitals of this
Agreement.

                  "Assignee" has the meaning set forth in Section 14.1.

                  "Assignment and Acceptance" means an Assignment and Acceptance
Agreement in the form of Exhibit A-1, or otherwise acceptable to Agent in its
Permitted Discretion.

                  "Authorized Person" means any officer or employee of
Administrative Borrower.

                  "Availability" means, as of any date of determination, if such
date is a Business Day, and determined at the close of business on the
immediately preceding Business Day, if such date of determination is not a
Business Day, the amount that Borrowers are entitled to borrow as Advances under
Section 2.1 (after giving effect to all then outstanding Obligations (other than
Bank Product Obligations) and all sublimits and reserves applicable under this
Agreement).

                  "Bank Product" means any financial accommodation extended to
Administrative Borrower or its Subsidiaries by a Bank Product Provider (other
than pursuant to this Agreement) including: (a) credit cards, (b) credit card
processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions,
(f) cash management, including controlled disbursement, accounts or services, or
(g) transactions under Hedge Agreements.

                  "Bank Product Agreements" means those agreements entered into
from time to time by Administrative Borrower or its Subsidiaries with a Bank
Product Provider in connection with the obtaining of any of the Bank Products.

                  "Bank Product Obligations" means all obligations, liabilities,
contingent reimbursement obligations, fees, and expenses owing by Administrative
Borrower or its Subsidiaries to any Bank Product Provider pursuant to or
evidenced by the Bank Product Agreements and irrespective of whether for the
payment of money, whether direct or indirect, absolute or contingent, due or to
become due, now existing or hereafter arising, and including all such amounts
that Administrative Borrower or its Subsidiaries are obligated to reimburse to
Agent or any member of the Lender Group as a result of Agent or such member of
the Lender Group purchasing participations from, or executing indemnities or
reimbursement obligations to, a Bank Product Provider with respect to the Bank
Products provided by such Bank Product Provider to Administrative Borrower or
its Subsidiaries.

                  "Bank Product Provider" means Wells Fargo or any of its
Affiliates.

                  "Bank Product Reserves" means, as of any date of
determination, the amount of reserves that Agent has established (based upon the
Bank Product Providers' reasonable determination of the credit exposure in
respect of then extant Bank Products) for Bank Products then provided or
outstanding.

                  "Bankruptcy Code" means Title 11 of the United States Code,
provided that when the context so requires, with respect to the Canadian
Subsidiaries, "Bankruptcy Code" shall mean the Bankruptcy and Insolvency Act
(Canada) or the Companies' Creditors Arrangement Act (Canada), in any case, as
in effect from time to time.

                                       5
<PAGE>

                  "Base LIBOR Rate" means the rate per annum, determined by
Agent in accordance with its customary procedures, and utilizing such electronic
or other quotation sources as it considers appropriate (rounded upwards, if
necessary, to the next 1/100%), to be the rate at which Dollar deposits (for
delivery on the first day of the requested Interest Period) are offered to major
banks in the London interbank market on or about 11:00 a.m. (California time) 2
Business Days prior to the commencement of the applicable Interest Period, for a
term and in an amount comparable to the Interest Period and amount of the LIBOR
Rate Loan requested (whether as an initial LIBOR Rate Loan or as a conversion of
a Base Rate Loan to a LIBOR Rate Loan) by Administrative Borrower in accordance
with this Agreement, which determination shall be conclusive in the absence of
manifest error.

                  "Base Rate" means, the rate of interest announced within Wells
Fargo at its principal office in San Francisco as its "prime rate", with the
understanding that the "prime rate" is one of Wells Fargo's base rates (not
necessarily the lowest of such rates) and serves as the basis upon which
effective rates of interest are calculated for those loans making reference
thereto and is evidenced by the recording thereof after its announcement in such
internal publications as Wells Fargo may designate.

                  "Base Rate Loan" means each portion of an Advance or the Term
Loan that bears interest at a rate determined by reference to the Base Rate.

                  "Benefit Plan" means a "defined benefit plan" (as defined in
Section 3(35) of ERISA) for which any Borrower or any Subsidiary or ERISA
Affiliate of any Borrower has been an "employer" (as defined in Section 3(5) of
ERISA) within the past 6 years.

                  "Blocked Person" has the meaning set forth in Section 5.26(b).

                  "Board of Directors" means the board of directors (or
comparable managers) of Parent or any committee thereof duly authorized to act
on behalf thereof.

                  "Books" means any Person's now owned or hereafter acquired
books and records (including all of its Records indicating, summarizing, or
evidencing its assets (including the Collateral) or liabilities, all of any
Person's Records relating to its or their business operations or financial
condition, and all of its goods or General Intangibles related to such
information).

                  "Borrower" and "Borrowers" have the respective meanings set
forth in the preamble to this Agreement.

                  "Borrowing" means a borrowing hereunder consisting of Advances
(or term loans, in the case of the Term Loan) made on the same day by the
Lenders (or Agent on behalf thereof), or by Swing Lender in the case of a Swing
Loan, or by Agent in the case of an Agent Advance, in each case, to
Administrative Borrower.

                  "Borrowing Base" means, as of any date of determination, the
result of:

                  (a)      60.0% of the Fair Market Valuation, minus

                                       6
<PAGE>

                  (b)      the sum of (i) the Bank Product Reserves, (ii) the
                           Environmental Remediation Reserve, (iii) the Title
                           Reserve and (iv) the aggregate amount of other
                           reserves, if any, established by Agent under Section
                           2.1(b).

                  "Borrowing Base Certificate" means a certificate in the form
of Exhibit B-1 delivered by the chief financial officer of Parent to Agent.

                  "Business Day" means any day that is not a Saturday, Sunday,
or other day on which banks are authorized or required to close in the State of
California, except that, if a determination of a Business Day shall relate to a
LIBOR Rate Loan, the term "Business Day" also shall exclude any day on which
banks are closed for dealings in Dollar deposits in the London interbank market.

                  "Canadian Income Tax Act" means the Income Tax Act (Canada),
R.S.C. 1985 C.1 (5th Supp.), as amended from time to time.

                  "Canadian Subsidiaries" means, collectively, U-Haul (Canada)
and U-Haul Inspections Ltd., a British Columbia corporation.

                  "Capital Expenditures" means, with respect to any Person for
any period, gross expenditures that are capital expenditures as determined in
accordance with GAAP for such period, whether such expenditures are paid in cash
or financed; minus lease funding received pursuant to operating and Capital
Lease commitments for such period; minus Net Dispositions for such period;
provided, however, Net Dispositions from the WP Carey Transaction received after
the Closing Date but on or prior to March 31, 2004 shall be deemed received
during fiscal year 2005.

                  "Capital Lease" means a lease that is required to be
capitalized for financial reporting purposes in accordance with GAAP.

                  "Capitalized Lease Obligation" means that portion of the
obligations under a Capital Lease that is required to be capitalized in
accordance with GAAP.

                  "Cash Equivalents" means (a) marketable direct obligations
issued or unconditionally guaranteed by the United States or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within 1 year from the date of acquisition thereof, (b)
marketable direct obligations issued by any state of the United States or any
political subdivision of any such state or any public instrumentality thereof
maturing within 1 year from the date of acquisition thereof and, at the time of
acquisition, having one of the two highest ratings obtainable from either
Standard & Poor's Rating Group ("S&P") or Moody's Investors Service, Inc.
("Moody's"), (c) commercial paper maturing no more than 270 days from the date
of creation thereof and, at the time of acquisition, having a rating of at least
A-1 from S&P or at least P-1 from Moody's, (d) certificates of deposit or
bankers' acceptances maturing within 1 year from the date of acquisition thereof
issued by any bank organized under the laws of the United States or any state
thereof having at the date of acquisition thereof combined capital and surplus
of not less than $250,000,000, (e) demand Deposit Accounts maintained with any
bank organized under the laws of the United States or any state thereof so long
as the amount maintained with any individual bank is less than or equal to
$100,000 and is insured by the

                                       7
<PAGE>

Federal Deposit Insurance Corporation, and (f) Investments in money market funds
substantially all of whose assets are invested in the types of assets described
in clauses (a) through (e) above.

                  "Cash Management Account" has the meaning set forth in Section
2.7(a).

                  "Cash Management Agreements" means those certain cash
management agreements, in form and substance satisfactory to Agent, including
without limitation the cash management agreement with respect to the
Concentration Account, each of which is among Administrative Borrower or one of
its Subsidiaries, Agent, and one of the Cash Management Banks.

                  "Cash Management Bank" has the meaning set forth in Section
2.7(a).

                  "Certificate(s) of Title" has the meaning set forth in Section
5.25(a).

                  "Change of Control" means (a) any "person" or "group" (within
the meaning of Sections 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 30%, or more, of
the Stock of Parent having the right to vote for the election of members of the
Board of Directors, or (b) a majority of the members of the Board of Directors
do not constitute Continuing Directors, or (c) any Borrower ceases to own,
directly or indirectly, and control 100% of the outstanding capital Stock of any
of its Subsidiaries extant as of the Closing Date unless the disposition,
liquidation or merger of such Subsidiary was permitted by Section 7.3 hereof; or
(d) (i) all or substantially all of the assets of Parent and its Restricted
Subsidiaries (as defined in the New AMERCO Note Indenture) are sold or otherwise
transferred to any Person other than a Wholly-Owned Restricted Subsidiary (as
defined in the New AMERCO Note Indenture) that is a Loan Party or (ii) Parent
consolidates or merges with or into another Person or any Person consolidates or
merges with or into Parent, in either case under this clause (d), in one
transaction or a series of related transactions in which immediately after the
consummation thereof Persons owning voting stock representing in the aggregate a
majority of the total voting power of the voting stock of Parent immediately
prior to such consummation do not own voting stock representing a majority of
the total voting power of the voting stock of Parent or the surviving or
transferee Person; or (e) Parent shall adopt a plan of liquidation or plan of
dissolution or any such plan shall be approved by the stockholders of Parent.

                  "Chapter 11 Case" has the meaning set forth in the preamble of
this Agreement.

                  "Chattel Paper" means any Person's now owned or hereafter
acquired right, title and interest in respect of "chattel paper" as such term is
defined in the Code, including, without limitation, any tangible or electronic
chattel paper.

                  "Closing Date" means the date of the making of the initial
Advance and Term Loan (or other extension of credit) hereunder.

                  "Closing Date Business Plan" means the set of Projections of
Borrowers for the 3-year period following the Closing Date (on a year-by-year
basis, and for the 1-year period following the Closing Date, on a month-by-month
basis), in form and substance (including as to scope and underlying assumptions)
reasonably satisfactory to Agent in its Permitted Discretion.

                                       8
<PAGE>

                  "Code" means the New York Uniform Commercial Code, as in
effect from time to time.

                  "Collateral" means all of each Borrower's and each Guarantor's
now owned or hereafter acquired right, title, and interest in and to each of the
following:

                  (a)      Accounts,

                  (b)      Books,

                  (c)      Chattel Paper,

                  (d)      Commercial Tort Claims,

                  (e)      Deposit Accounts,

                  (f)      Equipment,

                  (g)      General Intangibles,

                  (h)      Inventory,

                  (i)      Investment Property,

                  (j)      Negotiable Collateral,

                  (k)      Real Property Collateral,

                  (l)      Supporting Obligations,

                  (m)      money, cash, Cash Equivalents, or other assets of
each such Borrower or such Guarantor that now or hereafter come into the
possession, custody, or control of any member of the Lender Group,

                  (n)      the proceeds and products, whether tangible or
intangible, of any of the foregoing, including proceeds of insurance covering
any or all of the foregoing, and any and all Accounts, Books, Chattel Paper,
Deposit Accounts, Equipment, General Intangibles, Inventory, Investment
Property, Negotiable Collateral, Real Property, Supporting Obligations, money,
deposit accounts, or other tangible or intangible property resulting from the
sale, exchange, collection, or other disposition of any of the foregoing, or any
portion thereof or interest therein, and the proceeds thereof; and

                  (o)      to the extent not included in the foregoing, all
other personal property of Borrowers or Guarantors of any kind or description
(including, without limitation, with respect to either Canadian Guarantor, all
"personal property" (as defined in the PPSA) of such party and all "proceeds"
(as defined in the PPSA) thereof);

provided, however, that the Excluded Assets shall not be included in the
Collateral.

                                       9
<PAGE>

                  "Collateral Access Agreement" means a landlord waiver, bailee
waiver, mortgagee waiver, or acknowledgement of any lessor, warehouseman,
processor, mortgagee, assignee, or other Person in possession of, having a Lien
upon, or having rights or interests in, the Equipment or Inventory, in each case
in form and substance reasonably satisfactory to Agent.

                  "Collections" means all cash, checks, notes, instruments, and
other items of payment (including insurance proceeds, proceeds of cash sales,
rental proceeds, and tax refunds) of Borrowers.

                  "Commercial Tort Claims" means any Person's now owned or
hereafter acquired right, title and interest with respect to any "commercial
tort claim" as such term is defined in the Code, including, without limitation,
the PWC Litigation and other commercial tort claims listed on Schedule C-1.

                  "Commitment" means, with respect to each Lender, its Revolver
Commitment, its Term Loan Commitment or its Total Commitment, as the context
requires, and, with respect to all Lenders, their Revolver Commitments, their
Term Loan Commitments, or their Total Commitments, as the context requires, in
each case as such Dollar amounts are set forth beside such Lender's name under
the applicable heading on Schedule C-2 or on the signature page of the
Assignment and Acceptance pursuant to which such Lender became a Lender
hereunder in accordance with the provisions of Section 14.1.

                  "Compliance Certificate" means a certificate substantially in
the form of Exhibit C-1 delivered by the chief financial officer of Parent to
Agent.

                  "Concentration Account" means account number 42-4903 of U-Haul
maintained at Bank One, Arizona or such other deposit account (located in the
United States) established by Borrower with the consent of Agent.

                  "Confirmation Date" means the date on which the Court entered
the Confirmation Order.

                  "Confirmation Order" has the meaning set forth in the recitals
of this Agreement.

                  "Consents" means, collectively, the written approval or
consent to the transactions contemplated by this Agreement and the Loan
Documents duly executed and delivered by each Person party to a Material
Contract whose consent to the transactions contemplated by this Agreement is
required by the terms of such agreement (other than such consents otherwise
provided for in the Reorganization Plan).

                  "Consolidated" means, with respect to Parent, the
consolidation of the income statement accounts of Parent's Subsidiaries with
those of Parent, all in accordance with GAAP, provided, that "consolidated" will
not include (a) the consolidation of the accounts of SAC Holding with the
accounts of Parent but for the inclusion of interest income earned on the Junior
Notes and management fees earned by U-Haul related to properties it manages that
are owned by SAC Holding; and (b) the consolidation of the accounts of the
Insurance Subsidiaries with the accounts of Parent but for the inclusion of
pre-tax net income earned by (or losses of) the Insurance Subsidiaries.

                                       10
<PAGE>

                  "Consolidated Cash Interest Expense" means, for any period,
the Consolidated Interest Expense of Parent paid in cash for such period
(including, without limitation, the Unused Line Fees, the interest component of
any deferred payment obligations, the interest component of all payments
associated with Capitalized Lease Obligations, commissions, discounts and other
fees and charges incurred in respect of a Letter of Credit or bankers'
acceptance financing and net payment pursuant to Hedge Agreements), provided
that Consolidated Cash Interest Expense shall exclude interest expense accrued
or capitalized during such period.

                  "Consolidated Charges" means, for any period, any
extraordinary and/or non-recurring Consolidated charges of Parent, representing
restructuring charges, payments to restructuring financial advisors and legal
counsel, non-cash impairment of asset charges and other non-cash write-offs that
were deducted in arriving at Consolidated Net Income; provided, however, (a) the
aggregate amount of Consolidated Charges calculated for the 3-month period
ending March 31, 2004 shall not exceed $75,000,000, (b) the aggregate amount of
Consolidated Charges calculated for the 3-month period ending June 30, 2004
shall not exceed $3,800,000, (c) the aggregate amount of Consolidated Charges
calculated for the 6-month period ending September 30, 2004 shall not exceed
$7,500,000, (d) the aggregate amount of Consolidated Charges calculated for the
9-month period ending December 31, 2004 shall not exceed $11,300,000, and (e)
the aggregate amount of Consolidated Charges calculated for the 12-month period
ending March 31, 2005 and as of the end of each fiscal quarter thereafter shall
not exceed $15,000,000.

                  "Consolidated EBITDA" means, for any period, the sum, without
duplication, of (i) Consolidated Net Income for such period; plus (ii)
Consolidated Interest Expense for such period; plus (iii) provision for
Consolidated taxes of Parent based on income or profits for such period (to the
extent such income or profits were included in computing the Consolidated Net
Income for such period); plus (iv) Consolidated depreciation, amortization and
other non-cash expense of Parent; plus (v) Consolidated Charges in each case
that were deducted in determining the Consolidated Net Income for such period;
minus (vi) pre-tax net income of the Insurance Subsidiaries; plus (vii) losses
of the Insurance Subsidiaries; minus (viii) gains from sales of any Real
Property; plus (ix) losses from sales of any Real Property minus (x) to the
extent the Synthetic Leases (including any refinancings, in whole or in part,
thereof), or any of them, are treated as Capital Leases in accordance with the
requirements of GAAP, the amounts of principal and interest due and paid under
such Synthetic Leases for such period, as such principal amounts are set forth
on Schedule 7.8(a).

                  "Consolidated Interest Expense" means, for any period, the
Consolidated interest expense of Parent for such period, whether paid, accrued
or capitalized (including, without limitation, amortization of original issue
discount, non-cash interest payments, Unused Line Fees, the interest component
of any deferred payment obligations, the interest component of all payments
associated with Capitalized Lease Obligations, commissions, discounts and other
fees and charges incurred in respect of a Letter of Credit or bankers'
acceptance financing and net payments pursuant to Hedge Agreements).

                  "Consolidated Net Income" means, for any period, the net
income of Parent for such period, determined in accordance with GAAP, provided
that such net income is calculated pursuant to the income statement presentation
set forth in the definition of "Consolidated".

                                       11
<PAGE>

                  "Continuing Director" means (a) any member of the Board of
Directors who was a director (or comparable manager) of Parent on the Closing
Date, and (b) any individual who becomes a member of the Board of Directors
after the Closing Date if such individual was appointed or nominated for
election to the Board of Directors by a majority of the Continuing Directors,
but excluding any such individual originally proposed for election in opposition
to the Board of Directors in office at the Closing Date in an actual or
threatened election contest relating to the election of the directors (or
comparable managers) of Parent (as such terms are used in Rule 14a-11 under the
Exchange Act) and whose initial assumption of office resulted from such contest
or the settlement thereof.

                  "Control Agreement" means a control agreement, in form and
substance reasonably satisfactory to Agent, executed and delivered from time to
time by Administrative Borrower or one of its Subsidiaries, Agent, and the
applicable securities intermediary with respect to a Securities Account or a
bank with respect to a Deposit Account.

                  "Copyright Security Agreement" means that certain copyright
security agreement executed and delivered by all Borrowers and Guarantors that
own copyrights as of the Closing Date, and Agent, the form and substance of
which are reasonably satisfactory to Agent.

                  "Court" has the meaning set forth in the recitals of this
Agreement.

                  "Credit Card Agreements" means those certain agreements
between Agent and the credit card processors of Borrowers or Guarantors
delivered from time to time pursuant to which such credit card processors agree
to transfer on a daily basis all credit card receipts of Borrowers or
Guarantors, as applicable, into the Concentration Account or other Cash
Management Account acceptable to Agent.

                  "Daily Balance" means, with respect to any Obligation and each
day during the term of this Agreement, the amount of such Obligation owed at the
end of such day.

                  "DDA" means any checking or other demand deposit account
maintained by any Borrower.

                  "Dealer List" has the meaning set forth in Section 6.2(d).

                  "Dealership Contract" means a U-Haul dealership contract
between a Subsidiary of U-Haul, on the one hand, and a U-Haul Dealer, on the
other hand.

                  "Debtors" has the meaning set forth in the recitals of this
Agreement.

                  "Default" means an event, condition, or default that, with the
giving of notice, the passage of time, or both, would be an Event of Default.

                  "Default Rate" has the meaning set forth in Section 2.6(c)(i).

                  "Defaulting Lender" means any Lender that fails to make any
Advance (or other extension of credit) that it is required to make hereunder on
the date that it is required to do so hereunder.

                                       12
<PAGE>

                  "Defaulting Lender Rate" means (a) the Base Rate for the first
3 days from and after the date the relevant payment is due, and (b) thereafter,
at the interest rate then applicable to Advances that are Base Rate Loans
(inclusive of the Applicable Margin) applicable thereto.

                  "Deposit Accounts" means any Person's now owned or hereafter
acquired right, title and interest with respect to any "deposit account" as such
term is defined in the Code, including, without limitation, any DDAs.

                  "Designated Account" means that certain DDA of Administrative
Borrower identified on Schedule D-1.

                  "Designated Account Bank" means the designated institution
that has been designated as such on Schedule D-1 or has otherwise been
designated as such, in writing, by Administrative Borrower to Agent.

                  "DIP Lender" has the meaning set forth in the recitals of this
Agreement.

                  "DIP Loan Agreement" has the meaning set forth in the recitals
of this Agreement.

                  "DIP Obligations" means, as of any date of determination, all
Obligations (as defined in the DIP Loan Agreement) outstanding under the DIP
Loan Agreement, including any Advances (as defined in the DIP Loan Agreement)
outstanding (including, without limitation, the face amount of any outstanding
Letter of Credit issued pursuant to the DIP Loan Agreement), the Term Loan (as
defined in the DIP Loan Agreement), and accrued interest, fees and other charges
payable thereunder.

                  "Disbursement Letter" means an instructional letter executed
and delivered by Administrative Borrower to Agent regarding the initial
extensions of credit to be made on the Closing Date, the form and substance of
which are reasonably satisfactory to Agent.

                  "Dollars" or "$" means United States dollars.

                  "Dormant Subsidiaries" means, collectively, EJOS, Inc., an
Arizona corporation, Japal, Inc., a Nevada corporation, M.V.S., Inc., a Nevada
corporation, Pafran, Inc., a Nevada corporation, Sophmar, Inc., a Nevada
corporation, and Picacho Peak Investments Co., a Nevada corporation.

                  "Due Diligence Letter" means the due diligence letter sent by
Agent's counsel to Administrative Borrower, together with Administrative
Borrower's completed responses to the inquiries set forth therein, the form and
substance of such responses to be reasonably satisfactory to Agent.

                  "ECF Carry Forward Amount" means, at any time of
determination, (a)(i) as of the Closing Date through September 30, 2004,
$3,335,000, (ii) as of October 1, 2004 through March 30, 2005, 50% of Borrowers'
Excess Cash Flow (whether positive or negative) for the period commencing on
April 1, 2004 and ending on September 30, 2004, based on unaudited financial
statements provided to Agent pursuant to Section 6.3(a), or (iii) as of March
31, 2005

                                       13
<PAGE>

and at all times thereafter, 50% of Borrowers' Excess Cash Flow for the fiscal
year ending March 31, 2005 (whether positive or negative), based on the audited
financial statements provided to Agent pursuant to Section 6.3(b), plus
Borrowers' Excess Cash Flow for each fiscal year thereafter (to the extent
positive) for which audited financial statements have been provided to Agent
pursuant to Section 6.3(b), minus (b) the sum of (i) the aggregate amount of
dividends paid in arrears on account of the preferred stock of Parent on or
after January 1, 2004 made from Borrowers' Excess Cash Flow pursuant to clause
(c) of Section 7.11, (ii) the aggregate amount of prepayments of the principal
amount of the Indebtedness under the New AMERCO Notes, the Term B Notes made
from Borrowers' Excess Cash Flow after the Closing Date pursuant to clause (2)
of Section 7.8(a)(v), and (iii) the aggregate amount of prepayments of the
principal amount of the Indebtedness under the Synthetic Leases made from
Borrowers' Excess Cash Flow after the Closing Date pursuant to clause (3) of
Section 7.8(a)(vi), in each case on a cumulative basis.

                  "Effective Date" has the meaning set forth in the
Reorganization Plan.

                  "Eligible Transferee" means (a) a commercial bank organized
under the laws of the United States, or any state thereof, and having total
assets in excess of $250,000,000, (b) a commercial bank organized under the laws
of any other country which is a member of the Organization for Economic
Cooperation and Development or a political subdivision of any such country and
which has total assets in excess of $250,000,000, provided that such bank is
acting through a branch or agency located in the United States, (c) a finance
company, insurance company, or other financial institution or fund that is
engaged in making, purchasing, or otherwise investing in commercial loans in the
ordinary course of its business and having (together with its Affiliates) total
assets in excess of $250,000,000, (d) any Affiliate (other than individuals) of
a Lender that was party hereto as of the Closing Date, including, without
limitation, a fund or account managed or administered by such Lender or an
Affiliate of such Lender or its investment manager or administrator (a "Related
Fund"), (e) the Persons required to become Lenders hereunder by the terms of the
Reorganization Plan, (f) so long as no Event of Default has occurred and is
continuing, any other Person approved by Agent and Administrative Borrower
(which approval of Administrative Borrower shall not be unreasonably withheld,
delayed or conditioned), and (g) during the continuation of an Event of Default,
any other Person approved by Agent.

                  "Enforcement Event" means the exercise by Agent of any
remedies under Section 9.1 hereof during the continuation of any Event of
Default.

                  "Environmental Actions" means any complaint, summons,
citation, notice, directive, order, claim, litigation, investigation, judicial
or administrative proceeding, judgment, letter, or other communication from any
Governmental Authority, or any third party involving violations of Environmental
Laws or releases of Hazardous Materials from (a) any assets, properties, or
businesses of any Borrower or any predecessor in interest, (b) from adjoining
properties or businesses, or (c) from or onto any facilities which received
Hazardous Materials generated by any Borrower or any predecessor in interest.

                                       14
<PAGE>

                  "Environmental Indemnity Agreements" means, collectively,
those certain environmental indemnity agreements executed and delivered by
Borrowers and Guarantors in favor of Agent, in form and substance reasonably
satisfactory to Agent.

                  "Environmental Law" means any applicable federal, state,
provincial, foreign or local statute, law, rule, regulation, ordinance, code,
binding and enforceable guideline, binding and enforceable written policy, or
rule of common law now or hereafter in effect and in each case as amended, or
any judicial or administrative interpretation thereof, including any judicial or
administrative order, consent decree or judgment, to the extent binding on
Borrowers, relating to the environment, employee health and safety, or Hazardous
Materials, including CERCLA; RCRA; the Federal Water Pollution Control Act, 33
U.S.C. Section 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C. Section
2601 et seq.; the Clean Air Act, 42 U.S.C. Section 7401 et seq.; the Safe
Drinking Water Act, 42 U.S.C. Section 3803 et seq.; the Oil Pollution Act of
1990, 33 U.S.C. Section 2701 et seq.; the Emergency Planning and the Community
Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Hazardous
Material Transportation Act, 49 U.S.C. Section 1801 et seq.; and the
Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq. (to the extent
it regulates occupational exposure to Hazardous Materials); any state and local
or foreign counterparts or equivalents, in each case as amended from time to
time.

                  "Environmental Liabilities and Costs" means all liabilities,
monetary obligations, Remedial Actions, losses, damages, punitive damages,
consequential damages, treble damages, costs and expenses (including all
reasonable fees, disbursements and expenses of counsel, experts, or consultants
and costs of investigation and feasibility studies), fines, penalties,
sanctions, and interest incurred as a result of any claim or demand by any
Governmental Authority or any third party, and which relate to any Environmental
Action.

                  "Environmental Lien" means any Lien in favor of any
Governmental Authority for Environmental Liabilities and Costs.

                  "Environmental Remediation Reserve" means a reserve against
Availability, in an amount determined by Agent upon consultation with its
environmental experts, with respect to environmental remediation costs for
certain of the Real Property Collateral, as the amount of such reserve may
increase or decrease from time to time in Agent's Permitted Discretion;
provided, however, the amount of such reserve established by Agent as of the
Closing Date may only (a) increase (i) upon the discovery of any fact or the
change of any circumstances after the Closing Date that Agent determines in its
Permitted Discretion may result in a material increase in Borrowers'
environmental liability and (ii) upon prior consultation with Borrowers, or (b)
decrease (i) if, in Agent's Permitted Discretion, Borrowers present substantive
evidence indicating a reduction in Borrowers' environmental liability and (ii)
upon the consent of the Required Lenders.

                  "Equipment" means any Person's now owned or hereafter acquired
right, title, and interest with respect to equipment, machinery, machine tools,
motors, furniture, furnishings, fixtures, Vehicles, tools, parts, goods (other
than consumer goods, farm products, or Inventory), wherever located, including
all attachments, accessories, accessions, replacements, substitutions,
additions, and improvements to any of the foregoing.

                                       15
<PAGE>

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, and any successor statute thereto.

                  "ERISA Affiliate" means (a) any Person subject to ERISA whose
employees are treated as employed by the same employer as the employees of a
Borrower or a Subsidiary of a Borrower under IRC Section 414(b), (b) any trade
or business subject to ERISA whose employees are treated as employed by the same
employer as the employees of a Borrower or a Subsidiary of a Borrower under IRC
Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412
of the IRC, any organization subject to ERISA that is a member of an affiliated
service group of which a Borrower or a Subsidiary of a Borrower is a member
under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and
Section 412 of the IRC, any Person subject to ERISA that is a party to an
arrangement with a Borrower or a Subsidiary of a Borrower and whose employees
are aggregated with the employees of a Borrower or a Subsidiary of a Borrower
under IRC Section 414(o).

                  "ERISA Event" means (a) a Reportable Event with respect to any
Benefit Plan or Multiemployer Plan, (b) the withdrawal of any Borrower, any of
any Borrower's Subsidiaries or ERISA Affiliates from a Benefit Plan during a
plan year in which it was a "substantial employer" (as defined in Section
4001(a)(2) of ERISA), (c) with respect to any Benefit Plan, the providing of
notice of intent to terminate a Benefit Plan in a distress termination (as
described in Section 4041(c) of ERISA), (d) the institution by the PBGC of
proceedings to terminate a Benefit Plan or Multiemployer Plan, (e) any event or
condition (i) that provides a basis under Section 4042(a)(1), (2) or (3) of
ERISA for the termination of, or the appointment of a trustee to administer, any
Benefit Plan or Multiemployer Plan, or (ii) that may result in termination of a
Multiemployer Plan pursuant to Section 4041A of ERISA, (f) the partial or
complete withdrawal within the meaning of Sections 4203 and 4205 of ERISA, of
Borrower, any of Borrower's Subsidiaries or ERISA Affiliates from a
Multiemployer Plan, or (g) providing any security to any plan under Section
401(a)(29) of the IRC by any Borrower or any of its Subsidiaries or any of their
ERISA Affiliates.

                  "Event of Default" has the meaning set forth in Section 8.

                  "Excess Availability" means the amount, as of the date any
determination thereof is to be made, equal to the difference between (a) the
lesser of (i) the Borrowing Base or (ii) the sum of (1) the Maximum Revolver
Amount plus (2) the Term Loan Amount, and (b) the Obligations then outstanding.

                  "Excess Availability Test" means, at the time of payment of
any Indebtedness under the New AMERCO Notes or the Term B Notes pursuant to
Section 7.8(a)(v)(2) or at the time of declaration or payment of any dividend or
dividend in arrears pursuant to Section 7.11(b) or Section 7.11(c),
respectively, (a) Borrowers' Excess Availability plus Qualified Cash (as
reported by Borrowers pursuant to Section 6.2(a)) exceeds (i) $35,000,000 plus
(ii) the amount of such dividend or debt payment as of the date of such payment
and as of the month end for each of the preceding consecutive 12 fiscal months
immediately preceding such payment date, and (b) after giving effect to such
payment, Borrowers' Excess Availability plus Qualified Cash, as reflected in the
Projections most recently delivered to Agent pursuant to Section 6.3(c), is

                                       16
<PAGE>

projected to exceed $35,000,000 for the month end of each of the 12 fiscal
months immediately succeeding such payment date.

                  "Excess Cash Flow" means, for the fiscal year most recently
ended prior to any determination date and based upon the audited financial
statements delivered by Borrowers pursuant to Section 6.3(b), (a) Consolidated
EBITDA, minus (b) the sum of (i) Consolidated Cash Interest Expense, plus (ii)
Capital Expenditures permitted hereunder, plus (iii) payments of the principal
amount of Funded Debt (other than Advances and prepayments of the Term Loan B
Notes and the New AMERCO Notes paid from Borrowers' Excess Cash Flow pursuant to
clause (2) of Section 7.8(a)(v) hereof) paid during such period and other
permitted debt service payments made, plus (v) federal, state and local income
taxes paid in cash, minus (c) the aggregate amount of dividends paid on account
of the Stock of Parent during such fiscal year pursuant to clause (b) of Section
7.11.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
in effect from time to time.

                  "Excluded Assets" means (a) the Synthetic Leases, and the
Synthetic Lease Collateral, (b) the Junior Notes and the interest accrued
thereon, and proceeds received from the monetization of Junior Notes, (c) all
Real Property set forth on Schedule E-1 under contract of sale as of the Closing
Date and proceeds received from any such sale, (d) all Real Property subject to
a first priority Lien of Oxford as of the Closing Date, as set forth on Schedule
E-1, (e) all Real Property designated as "Surplus Real Property" as of the
Closing Date, as set forth on Schedule E-1 and any proceeds received from any
sale of such Real Property, (f) Parent's Stock of the Insurance Subsidiaries and
the proceeds received from the monetization of such Stock, (g) proceeds in
excess of $50,000,000 from any settlement, judgment or other recovery from the
PWC Litigation, (h) Vehicles (including any tow dolly or auto transport) that,
as of the Closing Date are or thereafter become, and remain subject to, a TRAC
Lease Transaction and proceeds from the sale of such Vehicles to the extent no
Loan Party has any rights to or interest in such proceeds, except to the extent
such Vehicles become subject to the Agent's Liens pursuant to Section 7.4
hereof, (i) Vehicles (including any tow dolly or auto transport) that become and
remain subject to the PMCC Leveraged Lease and proceeds from the sale of such
Vehicles to the extent no Loan Party has any rights to or interest in such
proceeds, and (j) the cash collateral accounts set forth on Schedule 2.7(e).
With respect to the Excluded Assets set forth in clause (g) above, it is hereby
acknowledged and agreed that attorneys' fees and costs, court costs, expert
witness fees and expenses and other similar costs and expenses paid or payable
by Parent with respect to the PWC Litigation or any current or future taxes paid
or payable by Parent with respect to settlement payments or damage awards (after
taking into account any available tax credits or deductions and any tax sharing
arrangements) with respect to the PWC Litigation shall not be deducted from or
otherwise offset against Agent's Collateral.

                  "Executive Order No. 13224" means Executive Order No. 13224 on
Terrorist Financing, effective September 24, 2001, as the same has been, or
shall hereafter be, renewed, extended, amended or replaced.

                  "Fair Market Valuation" means the most recent fair market
valuation acceptable to the Lender Group (and determined at the direction or
request of Agent or the Lender Group by

                                       17
<PAGE>

a third party appraiser acceptable to the Lender Group) of the Real Property
Collateral acceptable to Agent which is subject to a valid and perfected first
priority Agent's Lien, subject only to Permitted Liens of the type described in
clauses (b), (f), (j), (k), (l) and (n) of the definition thereof.

                  "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 the lineal
descendants of such Persons.

                  "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.

                  "Fee Letter" means that certain fee letter, dated as of even
date herewith, between Borrowers and Agent, in form and substance reasonably
satisfactory to Agent.

                  "FEIN" means Federal Employer Identification Number.

                  "FIRREA" means Financial Institutions Reform, Recovery and
Enforcement Act, as in effect from time to time.

                  "Fonde de pouvoir" has the meaning set forth in Section 16.21.

                  "Foothill" means Wells Fargo Foothill, Inc., a California
corporation.

                  "Funded Debt" means without double-counting, with respect to
Parent on a Consolidated basis, as of any date of determination, all obligations
of the type described in clauses (a) through (c) and clause (e) of the
definition of "Indebtedness" set forth in Section 1.1 hereof and clause (f) of
such definition with respect to any guaranty of any of the foregoing, and
specifically including, without limitation, the amount of outstanding
Obligations hereunder.

                  "Funding Date" means the date on which a Borrowing occurs.

                  "Funding Losses" has the meaning set forth in Section
2.13(b)(ii).

                  "GAAP" means generally accepted accounting principles as in
effect from time to time in the United States, consistently applied.

                  "General Intangibles" means any Person's now owned or
hereafter acquired right, title, and interest with respect to general
intangibles (as that term is defined in the Code), including payment
intangibles, contract rights, rights to payment, rights arising under common
law, statutes, or regulations, choses or things in action, goodwill, patents,
trade names, trademarks, servicemarks, copyrights, blueprints, drawings,
purchase orders, customer lists, monies due or recoverable from pension funds,
route lists, rights to payment and other rights under any royalty or licensing
agreements, infringement claims, computer programs, information contained on
computer disks or tapes, software, literature, reports, catalogs, pension plan
refunds, pension plan refund claims, insurance premium rebates, tax refunds, and
tax refund claims, and any and all Supporting Obligations in respect thereof,
and any other personal

                                       18
<PAGE>

property other than goods, money, Accounts, Chattel Paper, Commercial Tort
Claims, Deposit Accounts, Investment Property, and Negotiable Collateral.

                  "Governing Documents" means, with respect to any Person, the
certificate or articles of incorporation, bylaws, or other organizational
documents of such Person.

                  "Governmental Authority" means any federal (including the
federal government of Canada), state, provincial, local, or other governmental
or administrative body, instrumentality, department, or agency or any court,
tribunal, administrative hearing body, arbitration panel, commission, or other
similar dispute-resolving panel or body.

                  "Guarantor" and "Guarantors" means all direct and indirect
Subsidiaries of Parent that are not a party to this Agreement, except for the
Insurance Subsidiaries, any Subsidiary formed under the laws of a jurisdiction
outside of the United States and Canada, Storage Realty, L.L.C., a Texas limited
liability company, INW, and the Dormant Subsidiaries. For the avoidance of
doubt, SAC Holding shall not be a Guarantor under this Agreement. As of the
Closing Date, all Guarantors are listed on Schedule G-1.

                  "Guarantor Security Agreement" means, collectively, one or
more security agreements, hypothecs or other similar agreements executed and
delivered by Guarantors and Agent, the form and substance of which are
reasonably satisfactory to Agent.

                  "Guaranty" means, collectively, one or more general continuing
guaranty agreements executed and delivered by Guarantors in favor of Agent, in
form and substance reasonably satisfactory to Agent.

                  "Hazardous Materials" means (a) substances that are defined or
listed in, or otherwise classified pursuant to, any Applicable Laws or
regulations as "hazardous substances," "hazardous materials," "hazardous
wastes," "toxic substances," or any other formulation intended to define, list,
or classify substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, reproductive toxicity, or "EP
toxicity", (b) oil, petroleum, or petroleum derived substances, natural gas,
natural gas liquids, synthetic gas, drilling fluids, produced waters, and other
wastes associated with the exploration, development, or production of crude oil,
natural gas, or geothermal resources, (c) any flammable substances or explosives
or any radioactive materials, and (d) asbestos in any form or electrical
equipment that contains any oil or dielectric fluid containing levels of
polychlorinated biphenyls in excess of 50 parts per million.

                  "Hedge Agreement" means any and all agreements or documents
now existing or hereafter entered into by Administrative Borrower or its
Subsidiaries that provide for an interest rate, credit, commodity or equity
swap, cap, floor, collar, forward foreign exchange transaction, currency swap,
cross currency rate swap, currency option, or any combination of, or option with
respect to, these or similar transactions, for the purpose of hedging
Administrative Borrower's or its Subsidiaries' exposure to fluctuations in
interest or exchange rates, loan, credit exchange, security or currency
valuations or commodity prices.

                  "Holdout Lender" has the meaning set forth in Section 15.2.

                                       19
<PAGE>

                  "Indebtedness" means (a) all obligations for borrowed money,
(b) all obligations evidenced by bonds, debentures, notes, or other similar
instruments and all reimbursement or other obligations in respect of letters of
credit, bankers acceptances, interest rate swaps, or other financial products,
(c) all obligations as a lessee under Capital Leases, (d) all obligations or
liabilities of others secured by a Lien on any asset of a Person or its
Subsidiaries, irrespective of whether such obligation or liability is assumed,
(e) all obligations to pay the deferred purchase price of assets (other than
trade payables incurred in the ordinary course of business and repayable in
accordance with customary trade practices), and (f) any obligation guaranteeing
or intended to guarantee (whether directly or indirectly guaranteed, endorsed,
co-made, discounted, or sold with recourse) any obligation of any other Person
that constitutes Indebtedness under any of clauses (a) through (e) above.

                  "Indemnified Liabilities" has the meaning set forth in Section
11.3.

                  "Indemnified Person" has the meaning set forth in Section
11.3.

                  "Insolvency Proceeding" means any proceeding commenced by or
against any Person under any provision of the Bankruptcy Code or under any other
state, provincial or federal (including the federal laws of Canada) bankruptcy
or insolvency law, assignments for the benefit of creditors, formal or informal
moratoria, compositions, extensions generally with creditors, or proceedings
seeking reorganization, arrangement, or other similar relief.

                  "Insurance Subsidiaries" means, collectively, Oxford and
RepWest.

                  "Intangible Assets" means, with respect to any Person, that
portion of the book value of all of such Person's assets that would be treated
as intangibles under GAAP.

                  "Interest Period" means, with respect to each LIBOR Rate Loan,
a period commencing on the date of the making of such LIBOR Rate Loan (or the
continuation of a LIBOR Rate Loan or the conversion of a Base Rate Loan to a
LIBOR Rate Loan) and ending 1, 2, 3, or 6 months thereafter; provided, however,
that (a) if any Interest Period would end on a day that is not a Business Day,
such Interest Period shall be extended (subject to clauses (c) through (e)
below) to the next succeeding Business Day, (b) interest shall accrue at the
applicable rate based upon the LIBOR Rate from and including the first day of
each Interest Period to, but excluding, the day on which any Interest Period
expires, (c) any Interest Period that would end on a day that is not a Business
Day shall be extended to the next succeeding Business Day unless such Business
Day falls in another calendar month, in which case such Interest Period shall
end on the next preceding Business Day, (d) with respect to an Interest Period
that begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of
such Interest Period), the Interest Period shall end on the last Business Day of
the calendar month that is 1, 2, 3, or 6 months after the date on which the
Interest Period began, as applicable, and (e) Borrowers (or Administrative
Borrower on behalf thereof) may not elect an Interest Period which will end
after the Maturity Date.

                  "IntraLinks" means IntraLinks, Inc. or any other digital
workspace provider selected by Agent from time to time after notice to
Administrative Borrower.

                                       20
<PAGE>

                  "Inventory" means any Person's now owned or hereafter acquired
right, title, and interest with respect to inventory, including goods held for
sale or lease or to be furnished under a contract of service, goods that are
leased by such Person as lessor, goods that are furnished by such Person under a
contract of service, and raw materials, work in process, or materials used or
consumed in such Person's business, including, without limitation, supplies and
embedded software.

                  "Investment" means, with respect to any Person, any investment
by such Person in any other Person (including Affiliates) in the form of loans,
guarantees, advances, or capital contributions (excluding (a) commission,
travel, and similar advances to officers and employees of such Person made in
the ordinary course of business, and (b) bona fide Accounts arising in the
ordinary course of business consistent with past practices), purchases or other
acquisitions for consideration of Indebtedness or Stock, and any other items
that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP.

                  "Investment Property" means any Person's now owned or
hereafter acquired right, title, and interest with respect to "investment
property" as that term is defined in the Code, and any and all Supporting
Obligations in respect thereof.

                  "INW" means INW Company, a Washington corporation.

                  "IRC" means the Internal Revenue Code of 1986, as in effect
from time to time.

                  "IRS" means the Internal Revenue Service of the United States
and any successor thereto.

                  "Issuing Lender" means Foothill or any other Lender that, at
the request of Administrative Borrower and with the consent of Agent agrees, in
such Lender's sole discretion, to become an Issuing Lender for the purpose of
issuing L/Cs or L/C Undertakings pursuant to Section 2.12.

                  "JPMorgan" means JPMorganChase Bank, as Administrative Agent
for the Lenders under that certain 3-Year Credit Agreement dated as of June 28,
2002.

                  "Junior Notes" means those promissory notes issued by SAC
Holding to Nationwide Commercial Co., an Arizona corporation, U-Haul and Oxford
prior to Parent Relief Date, as amended and restated as of the Closing Date.

                  "L/C" has the meaning set forth in Section 2.12(a).

                  "L/C Disbursement" means a payment made by the Issuing Lender
pursuant to a Letter of Credit.

                  "L/C Undertaking" has the meaning set forth in Section
2.12(a).

                  "Lender" and "Lenders" have the respective meanings set forth
in the preamble to this Agreement, and shall include any other Person made a
party to this Agreement in accordance with the provisions of Section 14.1.

                                       21
<PAGE>

                  "Lender Group" means, individually and collectively, each of
the Lenders (including the Issuing Lender) and Agent.

                  "Lender Group Expenses" means all (a) costs or expenses
(including taxes, mortgage recording taxes, and insurance premiums) required to
be paid by a Borrower or its Subsidiaries under any of the Loan Documents that
are paid or incurred by the Lender Group, (b) out of pocket fees or charges
paid, advanced or incurred by Agent in connection with the Lender Group's
transactions with Borrowers or their Subsidiaries, including, fees or charges
for photocopying, notarization, couriers and messengers, telecommunication,
public record searches (including tax lien, litigation, and Uniform Commercial
Code searches and including searches with the patent and trademark office, the
copyright office, or the department of motor vehicles), filing, recording,
publication, IntraLinks, appraisal (including periodic Collateral appraisals and
business valuations) to the extent of the fees and charges (and up to the amount
of any limitation) contained in this Agreement, real estate surveys, real estate
title policies and endorsements, environmental audits, and other amounts payable
in connection with any Mortgage, (c) costs and expenses in the disbursement of
funds to or for the account of Borrowers or other members of the Lender Group
(by wire transfer or otherwise), (d) charges paid or incurred by Agent resulting
from the dishonor of checks, (e) reasonable costs and expenses paid or incurred
by the Lender Group to correct any default or enforce any provision of the Loan
Documents, or in gaining possession of, maintaining, handling, preserving,
storing, shipping, selling, preparing for sale, or advertising to sell the
Collateral, or any portion thereof, irrespective of whether a sale is
consummated, (f) audit fees and expenses of Agent related to audit examinations
of the Loan Parties' Books to the extent of the fees and charges (and up to the
amount of any limitation) contained in this Agreement, (g) reasonable costs and
expenses of third party claims or any other suit paid or incurred by the Lender
Group, in either case in connection with enforcing or defending the Loan
Documents or in connection with the transactions contemplated by the Loan
Documents or the Lender Group's relationship with any Borrower or any Subsidiary
of a Borrower, (h) Agent's and, during the occurrence of an Event of Default,
each Lender's reasonable fees and expenses (including attorneys' fees) incurred
in advising, structuring, drafting, reviewing, administering, syndicating or
amending the Loan Documents, and (i) Agent's and each Lender's reasonable fees
and expenses (including attorneys', accountants', consultants', and other
advisors' fees and expenses) incurred in terminating, enforcing (including
attorneys' accountants', consultants', and other advisors' fees and expenses
incurred in connection with any "workout," "restructuring," or any other
Insolvency Proceeding concerning any Borrower or any Subsidiary or in exercising
rights or remedies under the Loan Documents), or defending the Loan Documents,
irrespective of whether suit is brought, or in taking any Remedial Action
concerning the Collateral.

                  "Lender-Related Person" means, with respect to any Lender,
such Lender, together with such Lender's Affiliates, and the officers,
directors, employees, attorneys and agents of such Lender.

                  "Letter of Credit" means an L/C or an L/C Undertaking, as the
context requires.

                  "Letter of Credit Fee" has the meaning set forth in Section
2.6(b).

                                       22
<PAGE>

                  "Letter of Credit Usage" means, as of any date of
determination, the aggregate undrawn amount of all outstanding Letters of Credit
plus 100% of the amount of outstanding time drafts accepted by an Underlying
Issuer as a result of drawings under Underlying Letters of Credit.

                  "LIBOR Deadline" has the meaning set forth in Section
2.13(b)(i).

                  "LIBOR Notice" means a written notice in the form of Exhibit
L-1.

                  "LIBOR Option" has the meaning set forth in Section 2.13(a).

                  "LIBOR Rate" means, for each Interest Period for each LIBOR
Rate Loan, the rate per annum determined by Agent (rounded upwards, if
necessary, to the next 1/16%) by dividing (a) the Base LIBOR Rate for such
Interest Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate shall
be adjusted on and as of the effective day of any change in the Reserve
Percentage, but in any event the LIBOR Rate shall not be less than 1.00% per
annum.

                  "LIBOR Rate Loan" means each portion of an Advance or the Term
Loan that bears interest at a rate determined by reference to the LIBOR Rate.

                  "Lien" means any interest in an asset securing an obligation
owed to, or a claim by, any Person other than the owner of the asset,
irrespective of whether (a) such interest shall be based on the common law,
statute, or contract, (b) such interest shall be recorded or perfected, and (c)
such interest shall be contingent upon the occurrence of some future event or
events or the existence of some future circumstance or circumstances. Without
limiting the generality of the foregoing, the term "Lien" includes the lien,
security interest or hypothec arising from a mortgage, deed of trust,
encumbrance, pledge, hypothecation, assignment, deposit arrangement, security
agreement, conditional sale or trust receipt, or from a lease, consignment, or
bailment for security purposes and also including reservations, exceptions,
encroachments, easements, rights-of-way, covenants, conditions, restrictions,
leases, and other title exceptions and encumbrances affecting Real Property.

                  "Loan Account" has the meaning set forth in Section 2.10.

                  "Loan Documents" means this Agreement (together with all
exhibits and schedules hereto), the Agency Letter, the Cash Management
Agreements, the Collateral Access Agreements, the Confirmation Order, the
Consents, the Control Agreements, the Copyright Security Agreement, the Credit
Card Agreements, the Disbursement Letter, the Due Diligence Letter, the
Environmental Indemnity Agreements, the Fee Letter, the Guarantor Security
Agreement, the Guaranty, the Letters of Credit, the Mortgages, the Officers'
Certificate, the Patent and Trademark Security Agreement, the Quebec Security
Documents, the Release of Claims, the Stock Pledge Agreement, the Term Loan B
Intercreditor Agreement, any note or notes executed by a Borrower in connection
with this Agreement and payable to a member of the Lender Group, and any other
agreement entered into, now or in the future, by any Borrower or any Guarantor
in connection with this Agreement.

                                       23
<PAGE>

                  "Loan Party" means any Borrower or any Guarantor, and "Loan
Parties" means all Borrowers and all Guarantors.

                  "Loan Pledgee" has the meaning set forth in Section 14.1(j).

                  "Loan Pledgor" has the meaning set forth in Section 14.1(j).

                  "Major Space Leases" means lease agreements, other than lease
agreements covering all or a portion of Real Property subject to the Synthetic
Leases, pursuant to which the proposed demised premises exceeds 5,000 square
feet and the proposed term thereof, inclusive of all extensions and renewals,
exceeds 10 years.

                  "Management Agreements" means, collectively, those certain
property management agreements between Subsidiaries of U-Haul, on the one hand,
and any of SAC Holding or SSI, on the other hand.

                  "Material Adverse Change" means (a) a material adverse change
in the business, prospects, operations, results of operations, assets,
liabilities or condition (financial or otherwise) of Borrowers and their
Subsidiaries (other than the Insurance Subsidiaries) taken as a whole, (b) a
material impairment of a Borrower's or Subsidiary of a Borrower's ability to
perform its obligations under the Loan Documents to which it is a party or of
the Lender Group's ability to enforce the Obligations or realize upon the
Collateral, or (c) a material impairment of the enforceability or priority of
the Agent's Liens with respect to the Collateral as a result of an action or
failure to act on the part of a Borrower or a Subsidiary of a Borrower (other
than the Insurance Subsidiaries). For the avoidance of doubt, changes solely
affecting SAC Holding shall not constitute a Material Adverse Change.

                  "Material Contracts" means the agreements set forth on
Schedule M-1, which include each of the agreements (a) filed in connection with
any Loan Party's SEC Filings and in existence as of the Closing Date, (b)
executed in connection with the Reorganization Plan, and (c) those agreements to
which any Loan Party is a party and the loss or breach of which by such Loan
Party would result in a Material Adverse Change, as such agreements are in
existence on the Closing Date or as amended to the extent permitted hereunder.

                  "Maturity Date" has the meaning set forth in Section 3.4.

                  "Maximum Revolver Amount" means $200,000,000 (less the amount
of any reductions established by Agent pursuant to clause (h) of the definition
of Permitted Dispositions set forth herein).

                  "Mortgage Policy" has the meaning set forth in Section 3.1(s).

                  "Mortgages" means, individually and collectively, one or more
mortgages, hypothecs, deeds of trust, or deeds to secure debt, executed and
delivered by a Borrower or a Guarantor in favor of Agent or the Fonde de
pouvoir, in form and substance reasonably satisfactory to Agent, that encumber
the Real Property Collateral and the related improvements thereto.

                                       24
<PAGE>

                  "Multiemployer Plan" means a "multiemployer plan" (as defined
in Section 4001(a)(3) of ERISA) to which Parent, any of its Subsidiaries, or any
ERISA Affiliate has contributed, or was obligated to contribute, within the past
six (6) years.

                  "Negotiable Collateral" means any Person's now owned and
hereafter acquired right, title, and interest with respect to letters of credit,
letter of credit rights, instruments, promissory notes, drafts, and documents,
and any and all Supporting Obligations in respect thereof.

                  "Net Disposition" means the aggregate amount of Net Proceeds
received by a Loan Party from the disposition of any Equipment that is a capital
asset and any Real Property that constitutes an Excluded Asset during any
period.

                  "Net Proceeds" means, with respect to any asset disposition by
Parent or any Subsidiary of Parent or any proceeds from casualty insurance
received by Parent or any Subsidiary, the aggregate amount of cash or Cash
Equivalents received for such assets, net of (a) reasonable and customary
transaction costs and expenses, (b) transfer taxes (including sales and use
taxes), (c) amounts payable to holders of applicable Permitted Liens hereunder
to the extent that such Permitted Liens (other than the Synthetic Leases), if
any, are senior in priority to the Agent's Liens, (d) an appropriate reserve for
income taxes in accordance with GAAP, and (e) appropriate amounts to be provided
as a reserve against liabilities or otherwise held in escrow in association with
any such disposition, in each case clauses (a) through (e) to the extent the
amounts so deducted are properly attributable to such transaction and payable
(or reserved) by Parent or any Subsidiary of Parent in connection with such
disposition or loss, including without limitation reasonable and customary
commissions and underwriting discounts, to a Person that is not an Affiliate of
Parent or such Subsidiary.

                  "New AMERCO Note Accounts" means, collectively, the Restated
SAC Notes Escrow Account, the 3.08(b) Account and any other Deposit Account that
holds or otherwise constitutes the collateral securing the obligations under the
New AMERCO Note Documents.

                  "New AMERCO Note Documents" means, collectively, the New
AMERCO Note Indenture, the New AMERCO Notes and such other documents (in form
and substance acceptable to Agent) executed by Parent in connection therewith.

                  "New AMERCO Note Indenture" means that certain Indenture with
respect to the issuance of the New AMERCO Notes, dated as of March 15, 2004,
among Parent, the guarantors listed on the signature pages thereto, and The Bank
of New York, as trustee, in form and substance acceptable to Agent (including,
without limitation, containing subordination provisions acceptable to Agent).

                  "New AMERCO Note Lenders" means those Persons that are
"Holders" under the New AMERCO Note Indenture.

                  "New AMERCO Notes" means the 12% Senior Secured Subordinated
Notes Due 2011 in the principal amount of $148,646,137 issued pursuant to the
New AMERCO Note Indenture.

                                       25
<PAGE>

                  "Obligations" means (a) all loans (including the Term Loan),
Advances, debts, principal, interest (including any interest that, but for the
provisions of the Bankruptcy Code, would have accrued), contingent reimbursement
obligations with respect to outstanding Letters of Credit, premiums, liabilities
(including all amounts charged to Borrowers' Loan Account pursuant hereto),
obligations (including indemnification obligations), fees (including the fees
provided for in the Fee Letter), charges, costs, Lender Group Expenses
(including any fees or expenses that, but for the provisions of the Bankruptcy
Code, would have accrued), lease payments, guaranties, covenants, and duties of
any kind and description owing by Borrowers to the Lender Group pursuant to or
evidenced by the Loan Documents and irrespective of whether for the payment of
money, whether direct or indirect, absolute or contingent, due or to become due,
now existing or hereafter arising, and including all interest not paid when due
and all Lender Group Expenses that Borrowers are required to pay or reimburse by
the Loan Documents, by law, or otherwise, and (b) all Bank Product Obligations.
Any reference in this Agreement or in the Loan Documents to the Obligations
shall include all amendments, changes, extensions, modifications, renewals
replacements, substitutions, and supplements, thereto and thereof, as
applicable, both prior and subsequent to any Insolvency Proceeding.

                  "OFAC" means the Office of Foreign Assets Control of the
United States Department of the Treasury.

                  "Officers' Certificate" means the representations and
warranties of officers form submitted by Agent to Administrative Borrower,
together with Administrative Borrower's completed responses to the inquiries set
forth therein, the form and substance of such responses to be reasonably
satisfactory to Agent.

                  "Organizational ID Number" means, with respect to any Person,
the organizational identification number assigned to such Person by the
applicable governmental unit or agency of the jurisdiction of organization or
formation of such Person.

                  "Originating Lender" has the meaning set forth in Section
14.1(e).

                  "Overadvance" has the meaning set forth in Section 2.5.

                  "Oxford" means Oxford Life Insurance Company, an Arizona
corporation, and its Subsidiaries, whether now existing or hereafter formed.

                  "Parent" has the meaning set forth in the preamble to this
Agreement.

                  "Parent Relief Date" means June 20, 2003.

                  "Participant" has the meaning set forth in Section 14.1(e).

                  "Participant Register" has the meaning set forth in Section
14.1(i).

                  "Patent and Trademark Security Agreement" means that certain
patent and trademark security agreement executed and delivered by all Borrowers
and Guarantors that own patent or trademarks as of the Closing Date, and Agent,
the form and substance of which are reasonably satisfactory to Agent.

                                       26
<PAGE>

                  "PBGC" means the Pension Benefit Guaranty Corporation as
defined in Title IV of ERISA, or any successor thereto.

                  "Permitted Discretion" means a determination made in good
faith and in the exercise of reasonable (from the perspective of a secured
asset-based lender) business judgment.

                  "Permitted Dispositions" means (a) sales or other dispositions
by Borrowers or their Subsidiaries of Equipment that is substantially worn,
damaged, or obsolete in the ordinary course of business, as determined by
Borrowers or their Subsidiaries, as the case may be, (b) the use or transfer of
money or Cash Equivalents by Borrowers or their Subsidiaries in a manner that is
not prohibited by the terms of this Agreement or the other Loan Documents, (c)
the licensing by Borrowers or their Subsidiaries, on a non-exclusive basis, of
patents, trademarks, copyrights, and other intellectual property rights in the
ordinary course of business, (d) conveyances, sales, assignments, leases,
transfers or dispositions of any Excluded Asset, (e) leases and licenses of
self-storage units to customers in the ordinary course of business, (f) the
granting of billboard and cell tower leases on any Real Property, (g) the
granting of space leases in the ordinary course of business that do not
constitute Major Space Leases, unless otherwise consented to by the Agent, (h)
dispositions of Real Property or any part thereof required in connection with
condemnations or takings, or dispositions in lieu thereof, where the
compensation paid on account thereof is immediately remitted by Borrowers to
Agent; provided Agent may, in its Permitted Discretion, on a pro rata basis,
reduce the Maximum Revolver Amount and require the repayment of the Term Loan by
an amount up to the fair market value of the Real Property subject to such
condemnation or taking, (i) so long as no Event of Default has occurred and is
continuing, dispositions of box-trucks, cargo vans and pickup trucks in the
ordinary course of Administrative Borrower's and U-Haul's fleet rotation
program, so long as the aggregate net book value of box-trucks, cargo vans and
pickup trucks subject to Agent's Liens does not decrease by more than (i)
$40,000,000 in any of (A) the first fiscal quarter after the Closing Date (to be
tested as of the end of such period), (B) the first two fiscal quarters after
the Closing Date (to be tested as of the end of such period), (C) the first
three fiscal quarters after the Closing Date (to be tested as of the end of such
period), or (D) each 12-month period thereafter (to be tested as of the end of
each fiscal quarter), or (ii) $160,000,000 in the aggregate after the Closing
Date, (j) the granting of Permitted Easements, (k) so long as no Event of
Default has occurred and is then continuing, the sale in the ordinary course of
business of Vehicles acquired within the previous 130 days in connection with a
TRAC Lease Transaction to the extent the obligations thereunder are permitted by
this Agreement, (l) the sale, disposition or replacement of Vehicles exchanged
in connection with the PMCC Like Kind Exchange Lease, (m) sales or other
dispositions set forth in the Reorganization Plan and approved in the
Confirmation Order, (n) the sale of that certain portion of the parcel of Real
Property Collateral located at 471 South Road, Poughkeepsie, New York that is
subject to the lease purchase option exercised prior to the Closing Date, (o) so
long as no Event of Default shall be caused thereby, other dispositions of Real
Property Collateral with a Fair Market Valuation in an aggregate amount not to
exceed either (i) $10,000,000 during any fiscal year or (ii) $35,000,000 in
total after the Closing Date, unless otherwise consented to by the Required
Lenders; provided, however, the sale or other disposition of any parcel of Real
Property Collateral (x) shall result in a Loan Party receiving proceeds in an
amount of not less than 80% of the Fair Market Valuation of such Real Property
Collateral, and (y) with an appraised Fair Market Valuation exceeding $7,000,000
shall not constitute a Permitted Disposition, unless consented to by the
Required Lenders, and (p) leases

                                       27
<PAGE>

and licenses of any portion of the Real Property subject to the Synthetic Leases
to tenants in the ordinary course of business.

                  "Permitted Easements" means (a) easements, licenses,
rights-of-way and other rights and privileges in the nature of easements
reasonably necessary or desirable for the use, repair, or maintenance of any
Real Property as herein provided and (b) if required by applicable Governmental
Authority, the dedication or transfer of unimproved portions of any Real
Property for road, highway or other public purposes; so long as, in each case
(other than with respect to Real Property subject to the Synthetic Leases) (i)
such grant, dedication or transfer does not materially impair the value or
remaining useful life of the applicable Real Property or the fair market value
of such Real Property or materially impair or interfere with the use or
operations thereof, (ii) such grant, dedication or transfer, in Administrative
Borrower's business judgment, is reasonably necessary in connection with the
use, maintenance, alteration or improvement of the applicable Real Property and
(iii) such grant, dedication or transfer will not cause the applicable Real
Property or any portion thereof to fail to comply with the provisions of the
Loan Documents and all Applicable Law.

                  "Permitted Holder" means Edward J. Shoen, Mark V. Shoen, James
P. Shoen, and their Family Members, and their Family Trusts.

                  "Permitted Investments" means (a) Investments in cash and Cash
Equivalents, (b) Investments in negotiable instruments for collection, (c)
advances made in connection with purchases of goods or services in the ordinary
course of business, (d) Investments by any Loan Party in any other Loan Party;
provided, to the extent such Investment is in the form of Indebtedness, such
Indebtedness shall be unsecured and contractually subordinated to the
Obligations and, upon any such Loan Party ceasing to be a wholly-owned
Subsidiary of Parent or such Indebtedness being owed to any Person other than a
Loan Party, such Loan Party shall be deemed to have incurred Indebtedness not
permitted by this clause (d), (e) Investments by U-Haul and Nationwide
Commercial Co. evidenced by the Junior Notes not to exceed the principal amount
outstanding thereunder as of the Closing Date (except for increases in principal
resulting solely from the accrual of interest thereon), (f) payments by U-Haul
and its Subsidiaries of expenses on behalf of SAC Holdings pursuant to the
Management Agreements provided that all such expenses are promptly reimbursed by
the appropriate other parties to the Management Agreements, (g) Investments in
PMSR, PM Preferred or any of its or their Affiliates owned by Parent or any of
its Subsidiaries or SAC Holding solely to the extent required pursuant to
Parent's obligations under the Support Party Agreements, so long as (i) on the
date of such Investment, Borrowers' Excess Availability plus Qualified Cash (as
reported by Borrowers pursuant to Section 6.2(a)) exceeds (A) $35,000,000 plus
(B) the amount of such Investment, as of the date of such payment and as of the
end of the month for each of the preceding consecutive 12 fiscal months
immediately preceding such payment date, (ii) after giving effect to such
Investment, Borrowers' Excess Availability plus Qualified Cash, as reflected in
the Projections most recently delivered to Agent pursuant to Section 6.3(c) is
projected to exceed $35,000,000 as of the month end for each of the 12 fiscal
months immediately succeeding the date of such Investment for each of the 12
fiscal months, and (iii) no Event of Default has occurred and is continuing or
would result therefrom, (h) guarantees by Parent of the obligations of its
Subsidiaries that are Loan Parties to the extent such obligations are otherwise
permitted hereunder and are consistent with past practices, (i) payments by
U-Haul and its Subsidiaries in

                                       28
<PAGE>

the ordinary course of business and consistent with past practices of certain
ordinary course operating expenses on behalf of any U-Haul Dealer pursuant to a
Dealership Contract, provided that the applicable U-Haul Dealer reimburses
U-Haul and its Subsidiaries for all such expenses in accordance with the
provisions of the Dealership Contract, (j) Hedge Agreements, as permitted
hereunder, (k) Investments pursuant to that certain promissory note dated
February 12, 1997 from PMSR in favor of U-Haul in the original principal amount
of $10,000,000, with such Indebtedness of PMSR thereunder assumed by PMSI
Investors, LLC on or about November 30, 1999, and (l) other Investments in an
aggregate amount not to exceed $5,000,000 per year, unless otherwise consented
to by the Required Lenders.

                  "Permitted Liens" means (a) Liens held by Agent to secure the
Obligations, (b) Liens for unpaid taxes that (i) are not yet delinquent, or (ii)
are the subject of a Permitted Protest, (c) Liens set forth on Schedule P-1, (d)
(i) Liens on the Synthetic Lease Collateral arising under the Synthetic Leases
and the interests of lessors under operating leases, and (ii) the interests of
the lessor and indenture trustee under the PMCC Leveraged Lease, (e) purchase
money Liens or the interests of lessors in leased assets under Capital Leases to
the extent that such Liens or interests secure Purchase Money Indebtedness
permitted hereunder and so long as such Lien attaches only to the asset
purchased or acquired and the proceeds thereof, (f) Liens arising by operation
of law in favor of warehousemen, landlords, carriers, mechanics, materialmen,
laborers, or suppliers, incurred in the ordinary course of business and not in
connection with the borrowing of money, and which Liens either (i) are for sums
not yet delinquent or (ii) are the subject of Permitted Protests, (g) Liens
arising from deposits made in connection with obtaining worker's compensation or
other unemployment insurance, (h) Liens or deposits to secure performance of
bids, tenders, or leases incurred in the ordinary course of business and not in
connection with the borrowing of money, (i) Liens granted as security for surety
or appeal bonds in connection with obtaining such bonds in the ordinary course
of business, (j) Liens with respect to the Real Property Collateral that are
exceptions to the commitments for title insurance issued in connection with the
Mortgages, as accepted by Agent, (k) with respect to any Real Property,
Permitted Easements, (l) Liens arising from judgments and attachments in
connection with court proceedings provided that the attachment or enforcement of
such Liens would not result in an Event of Default hereunder and such Liens are
subject to a Permitted Protest and no material Collateral is subject to a
material risk of loss or forfeiture and the claims in respect of such Liens are
fully covered by insurance (subject to ordinary and customary deductibles) and a
stay of execution pending appeal or proceeding for review is in effect, (m)
Liens granted to the New AMERCO Note Lenders pursuant to the New AMERCO Note
Documents on the property described in clauses (b), (c), (e), (f) and (g) of the
definition of Excluded Assets set forth in Article 1 hereof, (n) Liens granted
to the Term Loan B Note Lenders pursuant to the Term Loan B Note Documents,
subject to the Term Loan B Intercreditor Agreement, (o) Liens on Real Property
in favor of Oxford as of the Closing Date, as set forth on Schedule E-1, and (p)
subject to the provisions of Section 2.7(e), Liens on the cash collateral
accounts set forth on Schedule 2.7(e).

                  "Permitted Protest" means the right of Administrative Borrower
or any of its Subsidiaries, as applicable, to protest any Lien (other than any
such Lien that secures the Obligations), taxes (other than payroll taxes or
taxes that are the subject of a United States federal tax lien), or rental
payment, provided that (a) a reserve with respect to such obligation is
established on such Person's Books in such amount as is required under GAAP, (b)
any such

                                       29
<PAGE>

protest is instituted promptly and prosecuted diligently by Administrative
Borrower or any of its Subsidiaries, as applicable, in good faith, and (c) Agent
is satisfied that, while any such protest is pending, there will be no
impairment of the enforceability, validity, or priority of any of the Agent's
Liens.

                  "Person" means any natural person, corporation, limited
liability company, limited partnership, general partnership, limited liability
partnership, joint venture, trust, land trust, business trust, or other
organization, irrespective of whether it is a legal entity, and any government
and agency or political subdivision thereof.

                  "Personal Property Collateral" means all Collateral other than
Real Property.

                  "Pledge" has the meaning set forth in Section 14.(j).

                  "PMCC Like Kind Exchange Lease" means that certain Master
Equipment Lease Agreement dated as of June 30, 2000, between Norwest Bank
Minnesota, National Association, as lessor, and U-Haul Leasing & Sales Co., as
lessee, and all ancillary agreements referenced therein, as all of the foregoing
exist on the Closing Date, and as amended to the extent permitted herein.

                  "PMCC Leveraged Lease" means that certain Equipment Lease
Agreement (U-Haul Trust No. 96-1) dated as of June 28, 1996 between Fleet
National Bank, as lessor, and U-Haul Leasing & Sales Co., as lessee, and all
ancillary agreements referenced therein, as all of the foregoing exist on the
Closing Date, and as amended to the extent permitted herein.

                  "PM Preferred" means PM Preferred Properties, L.P., a Texas
limited partnership.

                  "PMSR" means Private Mini Storage Realty, L.P., a Texas
limited partnership.

                  "PMSR Agreement" means that certain PMSR Agreement dated as of
the Effective Date among Parent, PMSR, JPMorgan Chase Bank, as agent, and the
Lenders party thereto.

                  "PPSA" means the Personal Property Security Act, as in effect
from time to time in any applicable Canadian province or territory.

                  "Projections" means Parent's forecasted (a) balance sheets,
(b) profit and loss statements, and (c) cash flow statements together with
appropriate supporting details and a statement of underlying assumptions, all
prepared on a basis consistent with the presentation set forth in the definition
of "Consolidated" and on a basis consistent with Parent's financial statements
delivered to Lenders prior to the Closing Date.

                  "Pro Rata Share" means, as of any date of determination:

                  (a)      with respect to a Lender's obligation to make
Advances and receive payments of principal, interest, fees, costs, and expenses
with respect thereto, (i) prior to the Revolver Commitments being terminated or
reduced to zero, the percentage obtained by dividing (y) such Lender's Revolver
Commitment, by (z) the aggregate Revolver Commitments of all

                                       30
<PAGE>

Lenders, and (ii) from and after the time that the Revolver Commitments have
been terminated or reduced to zero, the percentage obtained by dividing (y) the
aggregate outstanding principal amount of such Lender's Advances by (z) the
aggregate outstanding principal amount of all Advances,

                  (b)      with respect to a Lender's obligation to participate
in Letters of Credit, to reimburse the Issuing Lender, and to receive payments
of fees with respect thereto, (i) prior to the Revolver Commitments being
terminated or reduced to zero, the percentage obtained by dividing (y) such
Lender's Revolver Commitment, by (z) the aggregate Revolver Commitments of all
Lenders, and (ii) from and after the time that the Revolver Commitments have
been terminated or reduced to zero, the percentage obtained by dividing (y) the
aggregate outstanding principal amount of such Lender's Advances by (z) the
aggregate outstanding principal amount of all Advances,

                  (c)      with respect to a Lender's obligation to make the
Term Loan and receive payments of interest, fees, and principal with respect
thereto, (i) prior to the making of the Term Loan, the percentage obtained by
dividing (y) such Lender's Term Loan Commitment, by (z) the aggregate amount of
all Lenders' Term Loan Commitments, and (ii) from and after the making of the
Term Loan, the percentage obtained by dividing (y) the principal amount of such
Lender's portion of the Term Loan by (z) the principal amount of the Term Loan,
and

                  (d)      with respect to all other matters as to a particular
Lender (including the indemnification obligations arising under Section 16.7),
the percentage obtained by dividing (i) such Lender's Revolver Commitment plus
the outstanding principal amount of such Lender's portion of the Term Loan, by
(ii) the aggregate amount of Revolver Commitments of all Lenders plus the
outstanding principal amount of the Term Loan; provided, however, that in the
event the Revolver Commitments have been terminated or reduced to zero, Pro Rata
Share under this clause shall be the percentage obtained by dividing (A) the
outstanding principal amount of such Lender's Advances plus such Lender's
ratable portion of the Risk Participation Liability with respect to outstanding
Letters of Credit plus the outstanding principal amount of such Lender's portion
of the Term Loan, by (B) the outstanding principal amount of all Advances plus
the aggregate amount of the Risk Participation Liability with respect to
outstanding Letters of Credit plus the outstanding principal amount of the Term
Loan.

                  "Purchase Money Indebtedness" means Indebtedness (other than
the Obligations, but including Capitalized Lease Obligations), incurred at the
time of, or within 20 days after, the acquisition of any fixed assets for the
purpose of financing all or any part of the acquisition cost thereof.

                  "PWC Litigation" means that certain claim filed by
Administrative Borrower against PricewaterhouseCoopers on or about June 5, 2003
in the Superior Court of Arizona, Maricopa County, No. CV2003-011032, and all
related disputes between Administrative Borrower and PricewaterhouseCoopers.

                  "Qualified Cash" means, as of any date of determination, the
amount of unrestricted cash and Cash Equivalents of the Loan Parties that is in
Deposit Accounts or in Securities Accounts, or any combination thereof, and
after August 15, 2003, which such Deposit

                                       31
<PAGE>

Account or Securities Account is the subject of a Control Agreement and is
maintained by a branch office of the bank or securities intermediary located
within the United States.

                  "Quebec Security Documents" means, collectively, (a) the deed
of hypothec and issue of bonds by each Canadian Subsidiary in favor of the Fonde
de pouvoir creating a hypothec in the principal amount of Cdn$1,320,000,000 in
all the Canadian Subsidiaries' personal (movable) and real (immovable) property,
(b) the delivery order by each Canadian Subsidiary to the Fonde de pouvoir, (c)
the 25% demand bond issued by each Canadian Subsidiary to the Agent and
certified by the Fonde de pouvoir, and (d) the pledge agreement by each Canadian
Subsidiary pledging the 25% demand bond in favor of the Agent, the form and
substance of which are reasonably satisfactory to Agent.

                  "Real Property" means any estates or interests in real
property now owned or hereafter acquired by any Loan Party and the improvements
thereto.

                  "Real Property Collateral" means the parcel or parcels of Real
Property identified on Schedule R-1 and any Real Property hereafter acquired by
a Loan Party on which Agent has or is required (in accordance with this
Agreement or any other Loan Document) to have a Lien.

                  "Record" means information that is inscribed on a tangible
medium or which is stored in an electronic or other medium and is retrievable in
perceivable form.

                  "Redirection Notice" has the meaning set forth in Section
14.1(j).

                  "Register" has the meaning set forth in Section 14.1(h).

                  "Registered Loan" has the meaning set forth in Section 2.16.

                  "Registered Note" has the meaning set forth in Section 2.16.

                  "Related Fund" has the meaning set forth in clause (d) of the
definition of Eligible Transferee.

                  "Release of Claims" means that certain release of claims dated
of even date herewith executed by Borrowers and Guarantors (each as defined
therein) under the DIP Loan Agreement in favor of Foothill and the DIP Lenders,
in form and substance reasonably satisfactory to Foothill.

                  "Remedial Action" means all actions taken to (a) clean up,
remove, remediate, contain, treat, monitor, assess, evaluate, or in any way
address Hazardous Materials in the indoor or outdoor environment, (b) prevent or
minimize a release or threatened release of Hazardous Materials so they do not
migrate or endanger or threaten to endanger public health or welfare or the
indoor or outdoor environment, (c) perform any pre-remedial studies,
investigations, or post-remedial operation and maintenance activities, or (d)
conduct any other actions authorized by 42 U.S.C. Section 9601.

                  "Reorganization Plan" has the meaning set forth in the
recitals of this Agreement.

                                       32
<PAGE>

                  "Report" has the meaning set forth in Section 16.17.

                  "Reportable Event" means any of the events described in
Section 4043(c) of ERISA or the regulations thereunder other than a Reportable
Event as to which the provision of 30 days' notice to the PBGC is waived under
applicable regulations.

                  "Replacement Lender" has the meaning set forth in Section
15.2.

                  "RepWest" means Republic Western Insurance Company, an Arizona
corporation, and its Subsidiaries, whether now existing or hereafter formed.

                  "Required Availability" means that the sum of (a) Excess
Availability plus (b) Qualified Cash exceeds $25,000,000.

                  "Required Lenders" means, at any time, Lenders whose Pro Rata
Shares aggregate 51% of the Total Commitments, or if the Commitments have been
terminated irrevocably, 51% of the Obligations (other than Bank Product
Obligations) then outstanding.

                  "Reservation Management System" means the software system
known as "Microres," which is used in connection with customer reservations of
U-Haul products and services.

                  "Reserve Percentage" means, on any day, for any Lender, the
maximum percentage prescribed by the Board of Governors of the Federal Reserve
System (or any successor Governmental Authority) for determining the reserve
requirements (including any basic, supplemental, marginal, or emergency
reserves) that are in effect on such date with respect to eurocurrency funding
(currently referred to as "eurocurrency liabilities") of that Lender, but so
long as such Lender is not required or directed under applicable regulations to
maintain such reserves, the Reserve Percentage shall be zero.

                  "Restated SAC Notes Escrow Account" means that certain
segregated Deposit Account or investment account maintained by Parent pursuant
to Section 11.05 of the New AMERCO Notes Indenture.

                  "Retiree Health Plan" means an "employee welfare benefit plan"
within the meaning of Section 3(1) of ERISA that provides benefits to
individuals after termination of their employment, other than as required by
Section 601 of ERISA.

                  "Revolver Commitment" means, with respect to each Lender, its
Revolver Commitment, and, with respect to all Lenders, their Revolver
Commitments, in each case as such Dollar amounts are set forth beside such
Lender's name under the applicable heading on Schedule C-2 or on the signature
page of the Assignment and Acceptance pursuant to which such Lender became a
Lender hereunder in accordance with the provisions of Section 14.1.

                  "Revolver Usage" means, as of any date of determination, the
sum of (a) the then extant amount of outstanding Advances, plus (b) the then
extant amount of the Letter of Credit Usage.

                                       33
<PAGE>

                  "Risk Participation Liability" means, as to each Letter of
Credit, all reimbursement obligations of Borrowers to the Issuing Lender with
respect to an L/C Undertaking, consisting of (a) the amount available to be
drawn or which may become available to be drawn, (b) all amounts that have been
paid by the Issuing Lender to the Underlying Issuer to the extent not reimbursed
by Borrowers, whether by the making of an Advance or otherwise, and (c) all
accrued and unpaid interest, fees, and expenses payable with respect thereto.

                  "SAC Holding" means, collectively, SAC Holding Corporation, a
Nevada corporation, SAC Holding II Corporation, a Nevada corporation, Montreal
Holding Corporation, a Nevada corporation, and each of their respective
Subsidiaries, whether now existing or hereafter formed.

                  "SAC Holding Senior Bond" means the 8.5% senior notes due 2014
in the principal amount of $200,000,000 issued pursuant to the SAC Notes
Indenture.

                  "SAC Notes Indenture" means that certain Indenture with
respect to the issuance of the SAC Holding Senior Bond, dated as of March 15,
2004, among SAC Holding Corporation, SAC Holding II Corporation and Law
Debenture Trust Company of New York.

                  "SAC Participation and Subordination Agreement" means that
certain participation and subordination agreement dated as of March 15, 2004, by
and among SAC Holding, Parent, U-Haul, and Law Debenture Trust Company of New
York, as Trustee under the SAC Notes Indenture.

                  "Sale Date" has the meaning set forth in Section 7.4.

                  "SEC" means the United States Securities and Exchange
Commission and any successor thereto.

                  "SEC Filings" means, with respect to any Person, all reports,
documents and other information filed by such Person pursuant to the Securities
Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended,
and all other rules and regulations promulgated by the SEC, including such
Person's filed Form 10-K and subsequently filed quarterly reports on Form 10-Q
and current reports on Form 8-K.

                  "Securities Account" means a "securities account" as that term
is defined in the Code.

                  "Settlement" has the meaning set forth in Section 2.3(f)(i).

                  "Settlement Date" has the meaning set forth in Section
2.3(f)(i).

                  "Solvent" means, with respect to any Person on a particular
date, that such Person is not insolvent (as defined in the Uniform Fraudulent
Transfer Act) or is not an "insolvent person" (as defined in the Bankruptcy and
Insolvency Act (Canada)) or is not a "debtor company" (as defined in the
Companies' Creditors Arrangement Act (Canada)).

                                       34
<PAGE>

                  "SSI" means Self-Storage International Holding Corporation, a
Nevada corporation, and any Subsidiary thereof, whether now existing or
hereafter formed.

                  "Statutory Lien Payments" has the meaning set forth in Section
5.23.

                  "Stock" means all shares, options, warrants, interests,
participations, or other equivalents (regardless of how designated) of or in a
Person, whether voting or nonvoting, including common stock, preferred stock, or
any other "equity security" (as such term is defined in Rule 3a11-1 of the
General Rules and Regulations promulgated by the SEC under the Exchange Act).

                  "Stock Pledge Agreement" means, collectively, one or more
stock pledge agreements, the form and substance of which are reasonably
satisfactory to Agent, executed and delivered by each Borrower or Guarantor that
owns Stock of a Subsidiary of Parent; provided a Stock Pledge Agreement shall
not be required in connection with the Stock of the Insurance Subsidiaries, the
Dormant Subsidiaries, INW, or Storage Realty, L.L.C.

                  "Subsidiary" of a Person means a corporation, partnership,
limited liability company, or other entity in which that Person directly or
indirectly owns or controls the shares of Stock having ordinary voting power to
elect a majority of the board of directors (or appoint other comparable
managers) of such corporation, partnership, limited liability company, or other
entity; provided, however, PMSR, PM Preferred, SAC Holding and SSI shall not be
deemed to be Subsidiaries of any Borrower herein.

                  "Support Party Agreement" means, collectively, (a) that
certain Support Party Agreement dated as of February 28, 2003 by and among
Parent and PM Preferred in favor of GMAC Commercial Holding Corp., as
administrative agent, as amended by the First Amendment to Support Party
Agreement dated as of June 13, 2003, and (b) that certain PMSR Agreement to be
dated as of the Effective Date, by and among Parent, PMSR, JP Morgan Chase Bank,
as administrative agent, and the lenders signatory thereto, in each case as
amended prior to the Closing Date and after the Closing Date as permitted herein
(provided, in each case, such amendment does not increase the obligations of any
Loan Party thereunder).

                  "Supporting Obligation" means any Person's now owned or
hereafter acquired right, title and interest with respect to any "supporting
obligation" as that term is defined in the Code.

                  "Swing Lender" means Foothill or any other Lender that, at the
request of Administrative Borrower and with the consent of Agent agrees, in such
Lender's sole discretion, to become the Swing Lender hereunder.

                  "Swing Loan" has the meaning set forth in Section 2.3(d)(i).

                  "Synthetic Lease Collateral" means (i) the Real Property and
Real Property interests leased under the Synthetic Leases and all structures,
buildings, and other immovable improvements located on such Real Property (the
"Synthetic Lease Properties"); (ii) all equipment, machinery, apparatus,
fittings, furniture, fixtures and other property of every kind and nature
whatsoever now or hereafter affixed to any portion of the Synthetic Lease
Properties

                                       35
<PAGE>

or which is used for the storage of property of storage customers of any
Synthetic Lessee under any Assigned Storage Agreements (defined below)
(excluding Vehicles), and which are now owned or hereafter acquired by any
lessor under any Synthetic Lease or in which any such lessor has or shall have
an interest, and all appurtenances and additions thereto and substitutions
therefor; (iii) all storage rental agreements, leases and licenses with respect
to the Synthetic Lease Properties now or hereinafter entered into and all
amendments, supplements and modifications thereto (collectively, the "Assigned
Storage Agreements"); (iv) all rents, maintenance fees, advance fees and
deposits, security deposits and prepaid amounts, income, receipts, issues,
profits and revenues arising from the Synthetic Lease Properties; (v) to the
extent arising from Assigned Storage Agreements or other rights to payment for
storage space at the Synthetic Lease Properties by storage customers, "general
intangibles" (including "payment intangibles") and "accounts" (as such terms are
defined in the Code), and other rights to payment for storage space at the
Synthetic Lease Properties by storage customers; (vi) license and concession
fees, proceeds and other benefits to which any Synthetic Lessee or any agent of
a Synthetic Lessee may now or hereafter be entitled with respect to the Assigned
Storage Agreements; (vii) all books, records, writings, data bases, and
information relating to, used or useful in connection with, evidencing,
embodying, incorporating or referring to, any of the foregoing; (viii) any award
or compensation or insurance payment or other proceeds to which any Synthetic
Lessee may become entitled by reason of its interest in the Synthetic Lease
Properties; and (ix) all products, offspring, rents, issues, profits, returns,
income and Proceeds (as defined in the Code) of and from any and all of the
foregoing.

                  "Synthetic Lease Properties" has the meaning set forth in the
definition of "Synthetic Lease Collateral".

                  "Synthetic Leases" means, collectively, (i) the Amended and
Restated Master Lease dated as of March 15, 2004 between AREC, as lessee, and
BMO Global Capital Solutions, Inc., as lessor, and any other documents,
agreements, mortgages, deeds of trust and other instruments executed in
connection therewith, (ii) that certain Second Amended and Restated Master Lease
and Open-End Mortgage dated as of March 15, 2004 among U-Haul and AREC, as
lessees, the various Lessors identified therein, as lessor, and BMO Global
Capital Solutions, Inc. as Agent Lessor for the Lessors, and any documents,
agreements, mortgages, deeds of trust, and other instruments executed in
connection therewith, and (iii) that certain Canadian U-Haul Master Lease dated
as of April 5, 2001 between Computershare Trust Company of Canada, as successor
to Montreal Trust Company of Canada, and U-Haul (Canada), and any documents,
agreements, mortgages, deeds of trust, and other instruments executed in
connection therewith, each as may be subsequently amended, restated or
refinanced to the extent permitted hereunder.

                  "Synthetic Lessee" means any of AREC, U-Haul and U-Haul
(Canada) and any of their respective successors in interest as lessees under the
Synthetic Leases that may succeed to such interests in accordance with this
Agreement and the applicable Synthetic Leases.

                  "Taxes" has the meaning set forth in Section 16.11(e).

                  "Term Loan" has the meaning set forth in Section 2.2(a).

                  "Term Loan Amount" means $350,000,000.

                                       36
<PAGE>

                  "Term Loan Commitment" means, with respect to each Lender, its
Term Loan Commitment and, with respect to all Lenders, their Term Loan
Commitments, in each case as such Dollar amounts are set forth beside such
Lender's name under the applicable heading on Schedule C-2 or on the signature
page of the Assignment and Acceptance pursuant to which such Lender became a
Lender hereunder in accordance with the provisions of Section 14.1.

                  "Term Loan B Intercreditor Agreement" means that certain
Intercreditor Agreement entered into and delivered by and among Agent and Wells
Fargo Bank, N.A., as trustee, in form and substance reasonably satisfactory to
Agent.

                  "Term Loan B Note Documents" means, collectively, the Term
Loan B Note Indenture, the Term Loan B Notes and such other documents (in form
and substance acceptable to Agent) executed by Parent in connection therewith.

                  "Term Loan B Note Indenture" means that certain Indenture with
respect to the issuance of the Term Loan B Notes, dated as of March 1, 2004,
among Parent, the guarantors listed on the signature pages thereto and Wells
Fargo Bank, National Association, as trustee, in form and substance acceptable
to Agent.

                  "Term Loan B Note Lenders" means those Persons that are
"Holders" under the Term Loan B Note Indenture.

                  "Term Loan B Notes" means the 9% Senior Secured Notes in the
principal amount of $200,000,000 due 2009 issued pursuant to the Term Loan B
Note Indenture.

                  "3.08(b) Account" means that certain segregated Deposit
Account or investment account maintained by Parent at The Bank of New York
pursuant to Section 3.08(b) of the New AMERCO Notes Indenture.

                  "Title Reserve" means a reserve against Availability in an
amount determined by Agent upon consultation with its counsel with respect to
title defects and exceptions for certain of the Real Property Collateral.

                  "Total Commitment" means, with respect to each Lender, its
Total Commitment, and, with respect to all Lenders, their Total Commitments, in
each case as such Dollar amounts are set forth beside such Lender's name under
the applicable heading on Schedule C-2 attached hereto or on the signature page
of the Assignment and Acceptance pursuant to which such Lender became a Lender
hereunder in accordance with the provisions of Section 14.1.

                  "TRAC Lease Transaction" means any operating or capital lease
(as determined in accordance with GAAP) entered into by any Loan Party pursuant
to a "Terminal Rental Adjustment Clause" lease (including, without limitation,
the PMCC Like Kind Exchange Lease) whereby (a) (i) the ownership of a Vehicle
that is owned by such Loan Party is transferred to a lessor within 130 days of
the acquisition of such Vehicle or (ii) the ownership of a Vehicle is
transferred to a lessor by someone other than a Loan Party, and (b) the Vehicle
so transferred is leased back to the Loan Party by such lessor.

                  "U-Haul" means U-Haul International, Inc., a Nevada
corporation.

                                       37
<PAGE>

                  "U-Haul (Canada)" means U-Haul Co. (Canada) Ltd. U-Haul Co.
(Canada) Ltee, an Ontario corporation.

                  "U-Haul Dealer" means any Person that leases Vehicles on
behalf of U-Haul in the ordinary course of business pursuant to a Dealership
Contract, as identified on the Dealer List.

                  "Underlying Issuer" means a third Person which is the
beneficiary of an L/C Undertaking and which has issued a letter of credit at the
request of the Issuing Lender for the benefit of Borrowers.

                  "Underlying Letter of Credit" means a letter of credit that
has been issued by an Underlying Issuer.

                  "Unused Line Fee" has the meaning set forth in Section
2.11(a).

                  "USA Patriot Act" means the Uniting and Strengthening America
by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001), as the same has been, or
shall hereafter be, renewed, extended, amended or replaced.

                  "Vehicle" or "Vehicles" means any vehicle (including any motor
vehicle), trailer or other asset of any Loan Party represented by a certificate
of title.

                  "Voidable Transfer" has the meaning set forth in Section 17.7.

                  "Wells Fargo" means Wells Fargo Bank, National Association, a
national banking association.

                  "WP Carey Transaction" means the transaction, in form and
substance reasonably satisfactory to Required Lenders, whereby UH Storage (DE)
Limited Partnership, a Delaware limited partnership, or other Affiliate of W.P.
Carey & Co., LLC, will acquire the Real Property that is subject to the
Synthetic Leases (excluding Real Property located in Canada) and such Synthetic
Leases shall be paid in full and terminated, all as more fully set forth on
Schedule W-1.

         1.2      ACCOUNTING TERMS; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided that for purposes
of determining compliance with any covenant set forth in Section 7, such terms
shall be construed in accordance with GAAP as in effect on the date of this
Agreement applied on a basis consistent with the application used in preparing
Borrowers' audited financial statements referred to in Section 6.3. If any
change in accounting principles from those used in the preparation of the
audited financial statements referred to in Section 6.3 hereafter occasioned by
the promulgation of any rule, regulation, pronouncement or opinion by or
required by the Financial Accounting Standards Board (or successors thereto or
agencies with similar functions) would result in a change in the method of
calculation of financial covenants, standards or terms found in Section 1 or
Section 7, the parties hereto agree to enter into negotiations in order to amend
such provisions so as to equitably reflect such changes with the desired result
that the criteria for evaluating Parent's financial condition

                                       38
<PAGE>

shall be the same after such change as if such change had not been made;
provided, however, the parties hereto agree to construe all terms of an
accounting or financial nature in accordance with GAAP as in effect prior to any
such change in accounting principles until the parties hereto have amended the
applicable provisions of this Agreement.

         1.3      CODE. Any terms used in this Agreement that are defined in the
Code shall be construed and defined as set forth in the Code unless otherwise
defined herein.

         1.4      CONSTRUCTION. Unless the context of this Agreement or any
other Loan Document clearly requires otherwise, references to the plural include
the singular, references to the singular include the plural, the term
"including" is not limiting, and the term "or" has, except where otherwise
indicated, the inclusive meaning represented by the phrase "and/or." The words
"hereof," "herein," "hereby," "hereunder," and similar terms in this Agreement
or any other Loan Document refer to this Agreement or such other Loan Document,
as the case may be, as a whole and not to any particular provision of this
Agreement or such other Loan Document, as the case may be. Section, subsection,
clause, schedule, and exhibit references herein are to this Agreement unless
otherwise specified. Any reference in this Agreement or in the other Loan
Documents to any agreement, instrument, or document shall include all
alterations, amendments, changes, extensions, modifications, renewals,
replacements, substitutions, joinders, and supplements, thereto and thereof, as
applicable (subject to any restrictions on such alterations, amendments,
changes, extensions, modifications, renewals, replacements, substitutions,
joinders, and supplements set forth herein). Any reference herein to the
repayment in full of the Obligations shall mean the repayment in full in cash of
all Obligations other than contingent indemnification Obligations and any other
Bank Product Obligations that at such time are allowed by the applicable Bank
Product Provider to remain outstanding and are not required to be repaid or cash
collateralized pursuant to the provisions of this Agreement. Any reference
herein to any Person shall be construed to include such Person's successors and
assigns. Any requirement of a writing contained herein or in the other Loan
Documents shall be satisfied by the transmission of a Record and any Record
transmitted shall constitute a representation and warranty as to the accuracy
and completeness of the information contained therein.

         1.5      SCHEDULES AND EXHIBITS. All of the schedules and exhibits
attached to this Agreement, together with any amendments, restatements,
supplements, or other modifications to such schedules and exhibits permitted
hereunder shall be deemed incorporated herein by reference.

2.       LOAN AND TERMS OF PAYMENT.

         2.1      REVOLVER ADVANCES.

                  (a)      Subject to the terms and conditions of this Agreement
and relying upon the representations and warranties set forth herein, and during
the term of this Agreement, each Lender with a Revolver Commitment agrees
(severally, not jointly or jointly and severally) to make advances ("Advances")
to Borrowers in an amount at any one time outstanding not to exceed such
Lender's Pro Rata Share of an amount equal to the lesser of (i) the Maximum
Revolver Amount less the Letter of Credit Usage, or (ii) the Borrowing Base less
the Letter of Credit Usage less the outstanding balance of the Term Loan.

                                       39
<PAGE>

                  (b)      Anything to the contrary in this Section 2.1
notwithstanding, Agent shall have the right to establish reserves in such
amounts, and with respect to such matters, as Agent in its Permitted Discretion
shall deem necessary or appropriate, against the Borrowing Base, including
reserves with respect to (i) sums that Borrowers are required to pay (such as
taxes, assessments, insurance premiums, or, in the case of leased assets, rents
or other amounts payable under such leases) and have failed to pay in accordance
with the terms of any Section of this Agreement or any other Loan Document, (ii)
amounts required to be paid to any Governmental Authority for mortgage, stamp or
other documentary taxes with respect to any Mortgage delivered pursuant to this
Agreement, and (iii) amounts owing by Borrowers or their Subsidiaries to any
Person to the extent secured by a Lien on, or trust over, any of the Collateral,
which Lien or trust, in the Permitted Discretion of Agent likely would have a
priority superior to the Agent's Liens (such as Liens or trusts in favor of
landlords, warehousemen, carriers, mechanics, materialmen, laborers, or
suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes
where given priority under Applicable Laws) in and to such item of the
Collateral; provided, however, the amount of any such reserve established by
Agent in its Permitted Discretion after the Closing Date shall only be reduced
with the consent of the Required Lenders.

                  (c)      The Lenders with Revolver Commitments shall have no
obligation to make additional Advances hereunder to the extent such additional
Advances would cause the Revolver Usage to exceed the Maximum Revolver Amount.

                  (d)      Amounts borrowed pursuant to this Section may be
repaid and, subject to the terms and conditions of this Agreement, reborrowed at
any time during the term of this Agreement.

         2.2      TERM LOAN.

                  (a)      Subject to the terms and conditions of this
Agreement, on the Closing Date each Lender with a Term Loan Commitment agrees
(severally, not jointly or jointly and severally) to make term loans
(collectively, the "Term Loan") to Borrowers in an amount equal to such Lender's
Pro Rata Share of an amount equal to the lesser of (i) the Term Loan Amount, or
(ii) the Borrowing Base less the Revolver Usage as of such date. The Term Loan
shall be repaid in equal monthly principal payments in the amount of $291,667,
commencing on April 1, 2004 and continuing on the first Business Day of each
month thereafter. Amounts borrowed and repaid pursuant to this Section may not
be reborrowed.

                  (b)      The outstanding unpaid principal balance and all
accrued and unpaid interest under the Term Loan shall be due and payable on the
date of termination of this Agreement, whether by its terms, by prepayment, or
by acceleration. All amounts outstanding under the Term Loan shall constitute
Obligations.

         2.3      BORROWING PROCEDURES AND SETTLEMENTS.

                  (a)      PROCEDURE FOR BORROWING. Each Borrowing shall be made
by an irrevocable written request by an Authorized Person delivered to Agent
(which notice must be received by Agent no later than 10:00 a.m. (California
time) on the Business Day prior to the date that is the requested Funding Date
specifying (i) the amount of such Borrowing, and (ii)

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<PAGE>

the requested Funding Date, which shall be a Business Day; provided, however,
that in the case of a request for Swing Loan in an amount of $1,000,000, or
less, such notice will be timely received if it is received by Agent no later
than 10:00 a.m. (California time) on the Business Day that is the requested
Funding Date. At Agent's election, in lieu of delivering the above-described
written request, any Authorized Person may give Agent telephonic notice of such
request by the required time, with such telephonic notice to be confirmed in
writing within 24 hours of the giving of such notice and the failure to provide
such written confirmation shall not affect the validity of the request. Upon the
making of any request for a Borrowing hereunder, Borrowers shall be deemed to
have certified that all conditions set forth in Section 3.3 hereof have been
satisfied.

                  (b)      AGENT'S ELECTION. Promptly after receipt of a request
for a Borrowing pursuant to Section 2.3(a), Agent shall elect, in its
discretion, (i) to have the terms of Section 2.3(c) apply to such requested
Borrowing, or (ii) if the Borrowing is for an Advance, to request Swing Lender
to make a Swing Loan pursuant to the terms of Section 2.3(d) in the amount of
the requested Borrowing; provided, however, that if Swing Lender declines in its
sole discretion to make a Swing Loan pursuant to Section 2.3(d), Agent shall
elect to have the terms of Section 2.3(c) apply to such requested Borrowing.

                  (c)      MAKING OF ADVANCES.

                           (i)      In the event that Agent shall elect to have
                  the terms of this Section 2.3(c) apply to a requested
                  Borrowing as described in Section 2.3(b), then promptly after
                  receipt of a request for a Borrowing pursuant to Section
                  2.3(a), Agent shall notify the Lenders, not later than 1:00
                  p.m. (California time) on the Business Day immediately
                  preceding the Funding Date applicable thereto by telecopy,
                  telephone, or other similar form of transmission, of the
                  requested Borrowing. Each Lender shall make the amount of such
                  Lender's Pro Rata Share of the requested Borrowing available
                  to Agent in immediately available funds, to Agent's Account,
                  not later than 10:00 a.m. (California time) on the Funding
                  Date applicable thereto. After Agent's receipt of the proceeds
                  of such Advances (or the Term Loan, as applicable), upon
                  satisfaction of the applicable conditions precedent set forth
                  in Section 3 hereof, Agent shall make the proceeds thereof
                  available to Administrative Borrower on the applicable Funding
                  Date by transferring immediately available funds equal to such
                  proceeds received by Agent to Administrative Borrower's
                  Designated Account; provided, however, that, subject to the
                  provisions of Section 2.3(i), Agent shall not request any
                  Lender to make, and no Lender shall have the obligation to
                  make, any Advance (or its portion of the Term Loan) if Agent
                  shall have actual knowledge that (1) one or more of the
                  applicable conditions precedent set forth in Section 3 will
                  not be satisfied on the requested Funding Date for the
                  applicable Borrowing unless such condition has been waived, or
                  (2) the requested Borrowing would exceed the Availability on
                  such Funding Date.

                           (ii)     Unless Agent receives notice from a Lender
                  on or prior to the Closing Date or, with respect to any
                  Borrowing after the Closing Date, prior to 9:00 a.m.
                  (California time) on the date of such Borrowing, that such
                  Lender will not make available as and when required hereunder
                  to Agent for the account of

                                       41
<PAGE>

                  Borrowers the amount of that Lender's Pro Rata Share of the
                  Borrowing, Agent may assume that each Lender has made or will
                  make such amount available to Agent in immediately available
                  funds on the Funding Date and Agent may (but shall not be so
                  required), in reliance upon such assumption, make available to
                  Borrowers on such date a corresponding amount. If and to the
                  extent any Lender shall not have made its full amount
                  available to Agent in immediately available funds and Agent in
                  such circumstances has made available to Borrowers such
                  amount, that Defaulting Lender shall on the Business Day
                  following such Funding Date make such amount available to
                  Agent, together with interest at the Defaulting Lender Rate
                  for each day during such period. A notice submitted by Agent
                  to any Lender with respect to amounts owing under this
                  subsection shall be conclusive, absent manifest error. If such
                  amount is so made available, such payment to Agent shall
                  constitute such Lender's Advance (or portion of the Term Loan,
                  as applicable) on the date of Borrowing for all purposes of
                  this Agreement. If such amount is not made available to Agent
                  on the Business Day following the Funding Date, Agent will
                  notify Administrative Borrower of such failure to fund and,
                  upon demand by Agent, Borrowers shall pay such amount to Agent
                  for Agent's account, together with interest thereon for each
                  day elapsed since the date of such Borrowing, at a rate per
                  annum equal to the interest rate applicable at the time to the
                  Advances (or portion of the Term Loan, as applicable)
                  composing such Borrowing. The failure of any Lender to make
                  any Advance (or portion of the Term Loan, as applicable) on
                  any Funding Date shall not relieve any other Lender of any
                  obligation hereunder to make an Advance (or portion of the
                  Term Loan, as applicable) on such Funding Date, but no Lender
                  shall be responsible for the failure of any other Lender to
                  make the Advance to be made by such other Lender on any
                  Funding Date.

                           (iii)    Agent shall not be obligated to transfer to
                  a Defaulting Lender any payments made by Borrowers to Agent
                  for the Defaulting Lender's benefit, and, in the absence of
                  such transfer to the Defaulting Lender, Agent shall transfer
                  any such payments to each other non-Defaulting Lender member
                  of the Lender Group ratably in accordance with their
                  Commitments (but only to the extent that such Defaulting
                  Lender's Advance was funded by the other members of the Lender
                  Group) or, if so directed by Administrative Borrower and if no
                  Default or Event of Default shall have occurred and be
                  continuing (and to the extent such Defaulting Lender's Advance
                  was not funded by the Lender Group), retain the same to be
                  re-advanced to Borrowers as if such Defaulting Lender had made
                  Advances to Borrowers. Subject to the foregoing, Agent may
                  hold and, in its Permitted Discretion, re-lend to Borrowers
                  for the account of such Defaulting Lender the amount of all
                  such payments received and retained by Agent for the account
                  of such Defaulting Lender. Solely for the purposes of voting
                  or consenting to matters with respect to the Loan Documents,
                  such Defaulting Lender shall be deemed not to be a "Lender"
                  and such Lender's Commitment shall be deemed to be zero. This
                  Section shall remain effective with respect to such Lender
                  until (x) the Obligations under this Agreement shall have been
                  declared or shall have become immediately due and payable, (y)
                  the non-Defaulting Lenders, Agent, and Administrative Borrower
                  shall have waived such

                                       42
<PAGE>

                  Defaulting Lender's default in writing, or (z) the Defaulting
                  Lender makes its Pro Rata Share of the applicable Advance and
                  pays to Agent all amounts owing by Defaulting Lender in
                  respect thereof. The operation of this Section shall not be
                  construed to increase or otherwise affect the Commitment of
                  any Lender, to relieve or excuse the performance by such
                  Defaulting Lender or any other Lender of its duties and
                  obligations hereunder, or to relieve or excuse the performance
                  by Borrowers of their duties and obligations hereunder to
                  Agent or to the Lenders other than such Defaulting Lender. Any
                  such failure to fund by any Defaulting Lender shall constitute
                  a material breach by such Defaulting Lender of this Agreement
                  and shall entitle Administrative Borrower at its option, upon
                  written notice to Agent, to arrange for a substitute Lender to
                  assume the Commitment of such Defaulting Lender, such
                  substitute Lender to be acceptable to Agent. In connection
                  with the arrangement of such a substitute Lender, the
                  Defaulting Lender shall have no right to refuse to be replaced
                  hereunder, and agrees to execute and deliver a completed form
                  of Assignment and Acceptance in favor of the substitute Lender
                  (and agrees that it shall be deemed to have executed and
                  delivered such document if it fails to do so) subject only to
                  being repaid its share of the outstanding Obligations (other
                  than Bank Product Obligations) (including an assumption of its
                  Pro Rata Share of the Risk Participation Liability) without
                  any premium or penalty of any kind whatsoever; provided
                  further, however, that any such assumption of the Commitment
                  of such Defaulting Lender shall not be deemed to constitute a
                  waiver of any of the Lender Groups' or Borrowers' rights or
                  remedies against any such Defaulting Lender arising out of or
                  in relation to such failure to fund.

                  (d)      MAKING OF SWING LOANS.

                           (i)      In the event Agent shall elect, with the
                  consent of Swing Lender, as a Lender, to have the terms of
                  this Section 2.3(d) apply to a requested Borrowing as
                  described in Section 2.3(b), Swing Lender as a Lender shall
                  make such Advance in the amount of such Borrowing (any such
                  Advance made solely by Swing Lender as a Lender pursuant to
                  this Section 2.3(d) being referred to as a "Swing Loan" and
                  such Advances being referred to collectively as "Swing Loans")
                  available to Borrowers on the Funding Date applicable thereto
                  by transferring immediately available funds to Administrative
                  Borrower's Designated Account. Each Swing Loan shall be deemed
                  to be an Advance hereunder and shall be subject to all the
                  terms and conditions applicable to other Advances, except that
                  no such Swing Loan shall be eligible for the LIBOR Option and
                  all payments on any Swing Loan shall be payable to Swing
                  Lender as a Lender solely for its own account (and for the
                  account of the holder of any participation interest with
                  respect to such Swing Loan). Subject to the provisions of
                  Section 2.3(i), Agent shall not request Swing Lender, as a
                  Lender, to make, and Swing Lender as a Lender shall not make,
                  any Swing Loan if Agent has actual knowledge that (i) one or
                  more of the applicable conditions precedent set forth in
                  Section 3 will not be satisfied on the requested Funding Date
                  for the applicable Borrowing unless such condition has been
                  waived, or (ii) the requested Borrowing would exceed the
                  Availability on such Funding Date. Swing Lender as a Lender

                                       43
<PAGE>

                  shall not otherwise be required to determine whether the
                  applicable conditions precedent set forth in Section 3 have
                  been satisfied on the Funding Date applicable thereto prior to
                  making, in its sole discretion, any Swing Loan.

                           (ii)     The Swing Loans shall be secured by the
                  Agent's Liens, shall constitute Obligations hereunder, and
                  shall bear interest at the rate applicable from time to time
                  to Advances that are Base Rate Loans.

                  (e)      AGENT ADVANCES.

                           (i)      Agent is hereby authorized by Borrowers and
                  the Lenders, from time to time in Agent's sole discretion, (1)
                  after the occurrence and during the continuance of a Default
                  or an Event of Default, or (2) at any time that any of the
                  other applicable conditions precedent set forth in Section 3
                  have not been satisfied, to make Advances to Borrowers on
                  behalf of the Lenders that Agent, in its Permitted Discretion
                  deems necessary or desirable (A) to preserve or protect the
                  Collateral, or any portion thereof, (B) to enhance the
                  likelihood of repayment of the Obligations (other than the
                  Bank Product Obligations), or (C) to pay any other amount
                  chargeable to Borrowers pursuant to the terms of this
                  Agreement, including Lender Group Expenses and the costs,
                  fees, and expenses described in Section 10 (any of the
                  Advances described in this Section 2.3(e) shall be referred to
                  as "Agent Advances"), provided, that notwithstanding anything
                  to the contrary contained in this Section 2.3(e), the
                  aggregate principal amount of Agent Advances outstanding at
                  any one time, when taken together with the aggregate principal
                  amount of Overadvances made in accordance with Section 2.3(i)
                  outstanding at any time, shall not exceed an amount equal to
                  the lesser of (x) 5.0% of the Borrowing Base then in effect
                  and (y) $10,000,000. Each Agent Advance shall be deemed to be
                  an Advance hereunder and shall be subject to all the terms and
                  conditions applicable to other Advances, except that no such
                  Agent Advance shall be eligible for the LIBOR Option and all
                  payments thereon shall be payable to Agent solely for its own
                  account (and for the account of the holder of any
                  participation interest with respect to such Agent Advances).

                           (ii)     The Agent Advances shall be repayable on
                  demand and secured by the Agent's Liens granted to Agent under
                  the Loan Documents, shall constitute Advances and Obligations
                  hereunder, and shall bear interest at the rate applicable from
                  time to time to Advances that are Base Rate Loans.

                  (f)      SETTLEMENT. It is agreed that each Lender's funded
portion of the Advances is intended by the Lenders to equal, at all times, such
Lender's Pro Rata Share of the outstanding Advances. Such agreement
notwithstanding, Agent, Swing Lender, and the other Lenders agree (which
agreement shall not be for the benefit of or enforceable by Borrowers) that in
order to facilitate the administration of this Agreement and the other Loan
Documents, settlement among them as to the Advances, the Swing Loans, and the
Agent Advances shall take place on a periodic basis in accordance with the
following provisions:

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<PAGE>

                           (i)      Agent shall request settlement
                  ("Settlement") with the Lenders on a weekly basis, or on a
                  more frequent basis if so determined by Agent, (1) on behalf
                  of Swing Lender, with respect to each outstanding Swing Loan,
                  (2) for itself, with respect to each Agent Advance, and (3)
                  with respect to Borrowers' or their Subsidiaries' Collections
                  received, as to each by notifying the Lenders by telecopy,
                  telephone, or other similar form of transmission, of such
                  requested Settlement, no later than 2:00 p.m. (California
                  time) on the Business Day immediately prior to the date of
                  such requested Settlement (the date of such requested
                  Settlement being the "Settlement Date"). Such notice of a
                  Settlement Date shall include a summary statement of the
                  amount of outstanding Advances (including Swing Loans and
                  Agent Advances) for the period since the prior Settlement
                  Date. Subject to the terms and conditions contained herein
                  (including Section 2.3(c)(iii)): (y) if a Lender's balance of
                  the Advances (including Swing Loans and Agent Advances)
                  exceeds such Lender's Pro Rata Share of the Advances
                  (including Swing Loans and Agent Advances) as of a Settlement
                  Date, then Agent shall, by no later than 12:00 p.m.
                  (California time) on the Settlement Date, transfer in
                  immediately available funds to a Deposit Account of such
                  Lender (as such Lender may designate) an amount such that each
                  such Lender shall, upon receipt of such amount, have as of the
                  Settlement Date, its Pro Rata Share of the Advances (including
                  Swing Loans and Agent Advances), and (z) if a Lender's balance
                  of the Advances, Swing Loans, and Agent Advances is less than
                  such Lender's Pro Rata Share of the Advances (including Swing
                  Loans and Agent Advances) as of a Settlement Date, such Lender
                  shall no later than 12:00 p.m. (California time) on the
                  Settlement Date transfer in immediately available funds to the
                  Agent's Account, an amount such that each such Lender shall,
                  upon transfer of such amount, have as of the Settlement Date,
                  its Pro Rata Share of the Advances (including Swing Loans and
                  Agent Advances). Such amounts made available to Agent under
                  clause (z) of the immediately preceding sentence shall be
                  applied against the amounts of the applicable Swing Loan or
                  Agent Advance and, together with the portion of such Swing
                  Loan or Agent Advance representing Swing Lender's Pro Rata
                  Share thereof, shall constitute Advances of such Lenders. If
                  any such amount is not made available to Agent by any Lender
                  on the Settlement Date applicable thereto to the extent
                  required by the terms hereof, Agent shall be entitled to
                  recover for its account such amount on demand from such Lender
                  together with interest thereon at the Defaulting Lender Rate.

                           (ii)     In determining whether a Lender's balance of
                  the Advances, Swing Loans, and Agent Advances is less than,
                  equal to, or greater than such Lender's Pro Rata Share of the
                  Advances, Swing Loans, and Agent Advances as of a Settlement
                  Date, Agent shall, as part of the relevant Settlement, apply
                  to such balance the portion of payments actually received in
                  good funds by Agent with respect to principal, interest, and
                  fees payable by Borrowers and allocable to the Lenders
                  hereunder, and proceeds of Collateral. To the extent that a
                  net amount is owed to any such Lender after such application,
                  such net amount shall be distributed by Agent to that Lender
                  as part of such next Settlement.

                                       45
<PAGE>

                           (iii)    Between Settlement Dates, Agent, to the
                  extent no Agent Advances or Swing Loans are outstanding, may
                  pay over to Swing Lender any payments received by Agent, that
                  in accordance with the terms of this Agreement would be
                  applied to the reduction of the Advances, for application to
                  Swing Lender's Pro Rata Share of the Advances. If, as of any
                  Settlement Date, Collections of Borrowers or their
                  Subsidiaries received since the then immediately preceding
                  Settlement Date have been applied to Swing Lender's Pro Rata
                  Share of the Advances other than to Swing Loans, as provided
                  for in the previous sentence, Swing Lender shall pay to Agent
                  for the accounts of the Lenders, and Agent shall pay to the
                  Lenders, to be applied to the outstanding Advances of such
                  Lenders, an amount such that each Lender shall, upon receipt
                  of such amount, have, as of such Settlement Date, its Pro Rata
                  Share of the Advances. During the period between Settlement
                  Dates, Swing Lender with respect to Swing Loans, Agent with
                  respect to Agent Advances, and each Lender (subject to the
                  effect of letter agreements between Agent and individual
                  Lenders) with respect to the Advances other than Swing Loans
                  and Agent Advances, shall be entitled to interest at the
                  applicable rate or rates payable under this Agreement on the
                  daily amount of funds employed by Swing Lender, Agent, or the
                  Lenders, as applicable.

                  (g)      NOTATION. As more fully set forth in Section 2.16 and
Section 14.1(h) Agent shall record on its books the principal amount of the
Advances (or portion of the Term Loan, as applicable) owing to each Lender,
including the Swing Loans owing to Swing Lender, and Agent Advances owing to
Agent, and the interests therein of each Lender, from time to time and such
records shall, absent manifest error, conclusively be presumed to be correct and
accurate. In addition, each Lender is authorized, at such Lender's option, to
note the date and amount of each payment or prepayment of principal of such
Lender's Advances (or portion of Term Loan, as applicable) in its books and
records, including computer records and such records shall, absent manifest
error, conclusively be presumed to be correct and accurate.

                  (h)      LENDERS' FAILURE TO PERFORM. All Advances (other than
Swing Loans and Agent Advances) shall be made by the Lenders contemporaneously
and in accordance with their Pro Rata Shares. It is understood that (i) no
Lender shall be responsible for any failure by any other Lender to perform its
obligation to make any Advance (or other extension of credit) hereunder, nor
shall any Commitment of any Lender be increased or decreased as a result of any
failure by any other Lender to perform its obligations hereunder, and (ii) no
failure by any Lender to perform its obligations hereunder shall excuse any
other Lender from its obligations hereunder.

                  (i)      OPTIONAL OVERADVANCES. Any contrary provision of this
Agreement notwithstanding, the Lenders hereby authorize Agent or Swing Lender,
as applicable, and Agent or Swing Lender, as applicable, may, but is not
obligated to, knowingly and intentionally, continue to make Advances to
Borrowers notwithstanding that an Overadvance exists or thereby would be
created, so long as (i) after giving effect to such Advances, the sum of the
outstanding Revolver Usage and the outstanding principal amount of the Term Loan
does not exceed the Borrowing Base by an amount equal to the lesser of (x) 5.0%
of the Borrowing Base and (y) $10,000,000, (ii) after giving effect to such
Advances the outstanding Revolver Usage (except

                                       46
<PAGE>

for and excluding amounts charged to the Loan Account for interest, fees, or
Lender Group Expenses) does not exceed the Maximum Revolver Amount, (iii) the
aggregate principal amount of Overadvances made pursuant to this Section 2.3(i)
when taken together with the aggregate principal amount of Agent Advances made
pursuant to Section 2.3(e) does not exceed at any time an amount equal to the
lesser of (x) 5.0% of the Borrowing Base then in effect and (y) $10,000,000, and
(iv) at the time of the making of any such Advance (including a Swing Loan),
Agent does not believe, in good faith, that the Overadvance created by such
Advance will be outstanding for more than 90 days. The foregoing provisions are
for the exclusive benefit of Agent, Swing Lender, and the Lenders and are not
intended to benefit Borrowers in any way. The Advances and Swing Loans, as
applicable, that are made pursuant to this Section 2.3(i) shall be subject to
the same terms and conditions as any other Advance or Swing Loan, as applicable,
except that they shall not be eligible for the LIBOR Option and the rate of
interest applicable thereto shall be the rate applicable to Advances that are
Base Rate Loans under Section 2.6(c) hereof without regard to the presence or
absence of a Default or Event of Default.

                           (i)      In the event Agent obtains actual knowledge
                  that the Revolver Usage exceeds the amounts permitted by the
                  preceding paragraph, regardless of the amount of, or reason
                  for, such excess, Agent shall notify Lenders as soon as
                  practicable (and prior to making any (or any additional)
                  intentional Overadvances (except for and excluding amounts
                  charged to the Loan Account for interest, fees, or Lender
                  Group Expenses) unless Agent determines that prior notice
                  would result in imminent harm to the Collateral or its value),
                  and the Lenders with Revolver Commitments thereupon shall,
                  together with Agent, jointly determine the terms of
                  arrangements that shall be implemented with Borrowers and
                  intended to reduce, within a reasonable time, the outstanding
                  principal amount of the Advances to Borrowers to an amount
                  permitted by the preceding paragraph. In the event Agent or
                  any Lender disagrees over the terms of reduction or repayment
                  of any Overadvance, the terms of reduction or repayment
                  thereof shall be implemented according to the determination of
                  the Required Lenders.

                           (ii)     Each Lender with a Revolver Commitment shall
                  be obligated to settle with Agent as provided in Section
                  2.3(f) for the amount of such Lender's Pro Rata Share of any
                  unintentional Overadvances by Agent reported to such Lender,
                  any intentional Overadvances made as permitted under this
                  Section 2.3(i), and any Overadvances resulting from the
                  charging to the Loan Account of interest, fees, or Lender
                  Group Expenses.

         2.4      PAYMENTS.

                  (a)      PAYMENTS BY BORROWERS.

                           (i)      Except as otherwise expressly provided
                  herein, all payments by Borrowers shall be made to Agent's
                  Account for the account of the Lender Group and shall be made
                  in immediately available funds, no later than 11:00 a.m.
                  (California time) on the date specified herein. Except as
                  otherwise provided in paragraph (b)(iii) below, any payment
                  received by Agent later than 11:00 a.m. (California time),
                  shall be deemed to have been received on the following

                                       47
<PAGE>

                  Business Day and any applicable interest or fee shall continue
                  to accrue until such following Business Day.

                           (ii)     Unless Agent receives notice from
                  Administrative Borrower prior to the date on which any payment
                  is due to the Lenders that Borrowers will not make such
                  payment in full as and when required, Agent may assume that
                  Borrowers have made (or will make) such payment in full to
                  Agent on such date in immediately available funds and Agent
                  may (but shall not be so required), in reliance upon such
                  assumption, distribute to each Lender on such due date an
                  amount equal to the amount then due such Lender. If and to the
                  extent Borrowers do not make such payment in full to Agent on
                  the date when due, each Lender severally shall repay to Agent
                  on demand such amount distributed to such Lender, together
                  with interest thereon at the Defaulting Lender Rate for each
                  day from the date such amount is distributed to such Lender
                  until the date repaid.

                  (b)      APPORTIONMENT AND APPLICATION OF PAYMENTS.

                           (i)      Except as otherwise provided with respect to
                  Defaulting Lenders and except as otherwise provided in the
                  Loan Documents (including any letter agreements between Agent
                  and individual Lenders), aggregate principal and interest
                  payments shall be apportioned ratably among the Lenders
                  (according to the unpaid principal balance of the Obligations
                  to which such payments relate held by each Lender) and
                  payments of fees and expenses (other than fees or expenses
                  that are for Agent's separate account, after giving effect to
                  any letter agreements between Agent and individual Lenders)
                  shall be apportioned ratably among the Lenders having a Pro
                  Rata Share of the type of Commitment or Obligation to which a
                  particular fee relates. All payments shall be remitted to
                  Agent and all such payments, and all proceeds of any Loan
                  Party's Accounts, or Collateral received by Agent, shall be
                  applied as follows:

                                    (A)     first, to pay any Lender Group
                           Expenses then due to Agent under the Loan Documents,
                           until paid in full,

                                    (B)     second, to pay any Lender Group
                           Expenses then due to the Lenders under the Loan
                           Documents, on a ratable basis, until paid in full,

                                    (C)     third, to pay any fees then due to
                           Agent (for its separate accounts, after giving effect
                           to any letter agreements between Agent and the
                           individual Lenders) under the Loan Documents until
                           paid in full,

                                    (D)     fourth, to pay any fees then due to
                           any or all of the Lenders (after giving effect to any
                           letter agreements between Agent and individual
                           Lenders) under the Loan Documents, on a ratable
                           basis, until paid in full,

                                    (E)     fifth, to pay interest due in
                           respect of all Agent Advances, until paid in full,

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<PAGE>

                                    (F)     sixth, ratably to pay interest due
                           in respect of the Advances (other than Agent
                           Advances), the Swing Loans, and the Term Loan until
                           paid in full,

                                    (G)     seventh, to pay the principal of all
                           Agent Advances until paid in full,

                                    (H)     eighth, so long as no Enforcement
                           Event exists, ratably to pay all principal amounts
                           then due and payable (other than as a result of an
                           acceleration thereof) with respect to the Term Loan
                           until paid in full,

                                    (I)     ninth, to pay the principal of all
                           Swing Loans until paid in full,

                                    (J)     tenth, so long as no Enforcement
                           Event exists, and at Agent's election (which election
                           Agent agrees will not be made if an Overadvance would
                           be created thereby), to pay amounts then due and
                           owing by Administrative Borrower or its Subsidiaries
                           in respect of Bank Products in an amount up to the
                           amount of the Bank Product Reserves, until paid in
                           full,

                                    (K)     eleventh, so long as no Enforcement
                           Event exists, to pay the principal of all Advances
                           until paid in full,

                                    (L)     twelfth, if an Enforcement Event
                           exists, ratably (i) to pay the principal amount of
                           all Advances until paid in full, (ii) to Agent, to be
                           held by Agent, for the ratable benefit of Issuing
                           Lender and those Lenders having a Revolver
                           Commitment, as cash collateral in an amount up to
                           105% of the then extant Letter of Credit Usage until
                           paid in full, and (iii) to pay the outstanding
                           principal balance of the Term Loan until the Term
                           Loan is paid in full,

                                    (M)     thirteenth, if an Enforcement Event
                           exists, to Agent, to be held by Agent for the benefit
                           of the Bank Product Providers, as cash collateral in
                           an amount up to the amount of the Bank Product
                           Reserve established prior to the occurrence of, and
                           not in contemplation of, the subject Event of Default
                           until Administrative Borrower's and its Subsidiaries'
                           obligations in respect of the then extant Bank
                           Products have been paid in full or the cash
                           collateral amount has been exhausted,

                                    (N)     fourteenth, if an Enforcement Event
                           exists, to pay any other Obligations (including Bank
                           Product Obligations) until paid in full, and

                                    (O)     fifteenth, to Borrowers (to be wired
                           to the Designated Account) or such other Person
                           entitled thereto under the Term Loan B Intercreditor
                           Agreement or Applicable Laws.

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<PAGE>

                           (ii)     Agent promptly shall distribute to each
                  Lender, pursuant to the applicable wire instructions received
                  from each Lender in writing, such funds as it may be entitled
                  to receive, subject to a Settlement delay as provided in
                  Section 2.3(h).

                           (iii)    In each instance, so long as no Event of
                  Default has occurred and is continuing, Section 2.4(b) shall
                  not be deemed to apply to any payment by Borrowers specified
                  by Borrowers to be for the payment of specific Obligations
                  then due and payable (or prepayable) under any provision of
                  this Agreement.

                           (iv)     For purposes of the foregoing, "paid in
                  full" means payment in cash of all amounts owing under the
                  Loan Documents according to the terms thereof, including loan
                  fees, service fees, professional fees, interest (and
                  specifically including interest accrued after the commencement
                  of any Insolvency Proceeding), default interest, interest on
                  interest, and expense reimbursements, whether or not the same
                  would be or is allowed or disallowed in whole or in part in
                  any Insolvency Proceeding.

                           (v)      In the event of a direct conflict between
                  the priority provisions of this Section 2.4 and other
                  provisions contained in any other Loan Document, it is the
                  intention of the parties hereto that such priority provisions
                  in such documents shall be read together and construed, to the
                  fullest extent possible, to be in concert with each other. In
                  the event of any actual, irreconcilable conflict that cannot
                  be resolved as aforesaid, the terms and provisions of this
                  Section 2.4 shall control and govern.

         2.5      OVERADVANCES. If, at any time or for any reason, the amount of
Obligations (other than Bank Product Obligations) owed by Borrowers to the
Lender Group pursuant to Sections 2.1 and 2.12 is greater than either the Dollar
or percentage limitations set forth in Sections 2.1 or 2.12 (an "Overadvance"),
Borrowers immediately shall pay to Agent, in cash, the amount of such excess,
which amount shall be used by Agent to reduce the Obligations in accordance with
the priorities set forth in Section 2.4(b). In addition, Borrowers hereby
promise to pay the Obligations (including principal, interest, fees, costs, and
expenses) in Dollars in full to the Lender Group as and when due and payable
under the terms of this Agreement and the other Loan Documents.

         2.6      INTEREST RATES AND LETTER OF CREDIT FEE: RATES, PAYMENTS, AND
CALCULATIONS.

                  (a)      INTEREST RATES. Except as provided in clause (c)
below, all Obligations (except for undrawn Letters of Credit and except for Bank
Product Obligations) that have been charged to the Loan Account pursuant to the
terms hereof shall bear interest on the Daily Balance thereof as follows (i) if
the relevant Obligation is an Advance that is a LIBOR Rate Loan, at a per annum
rate equal to the LIBOR Rate plus the Applicable Margin, (ii) if the relevant
Obligation is a portion of the Term Loan that is a LIBOR Rate Loan, at a per
annum rate equal to the LIBOR Rate plus the Applicable Margin, (iii) if the
relevant Obligation is a portion of the Term Loan that is a Base Rate Loan, at a
per annum rate equal to the Base Rate plus the Applicable Margin, and (iv)
otherwise, at a per annum rate equal to the Base Rate plus the

                                       50
<PAGE>

Application Margin. Notwithstanding any provision in this Agreement to the
contrary, (x) for the period of 3 Business Days immediately following the
Closing Date, all Advances shall be Base Rate Loans, and (y) the Term Loan shall
be a LIBOR Rate Loan at all times after the Closing Date until such time as
Agent may convert the Term Loan to a Base Rate Loan pursuant to Section 2.13(a)
upon the occurrence and during the continuation of an Event of Default.

                  (b)      LETTER OF CREDIT FEE. Borrowers shall pay Agent (for
the ratable benefit of the Lenders with a Revolver Commitment, subject to any
letter agreement between Agent and individual Lenders), a Letter of Credit fee
(the "Letter of Credit Fee") (in addition to the charges, commissions, fees, and
costs set forth in Section 2.12(f)) which shall accrue at a rate equal to the
Applicable Margin for the Letter of Credit Fees times the Daily Balance of the
undrawn amount of all outstanding Letters of Credit as of the date of
determination.

                  (c)      DEFAULT RATE. Upon the occurrence and during the
continuation of an Event of Default (and at the election of Agent or the
Required Lenders),

                           (i)      all Obligations (except for undrawn Letters
                  of Credit and except for Bank Product Obligations) that have
                  been charged to the Loan Account pursuant to the terms hereof
                  shall bear interest on the Daily Balance thereof at a per
                  annum rate equal to 2.00 percentage points above the per annum
                  rate otherwise applicable hereunder (the "Default Rate"), and

                           (ii)     the Letter of Credit fee provided for above
                  shall be increased to 2.00 percentage points above the per
                  annum rate otherwise applicable hereunder.

                  (d)      PAYMENT. Interest (other than interest on LIBOR Rate
Loans), Letter of Credit fees, and all other fees payable hereunder shall be due
and payable, in arrears, on the first Business Day of each month at any time
that Obligations or Commitments are outstanding. Borrowers hereby authorize
Agent, from time to time, without prior notice to Borrowers, to charge all
interest and fees, all Lender Group Expenses (as and when incurred), the
charges, commissions, fees, and costs provided for in Section 2.12(f) (as and
when accrued or incurred), the fees and costs provided for in Section 2.11 (as
and when accrued or incurred), and all other payments as and when due and
payable under any Loan Document (including the installments due and payable with
respect to the Term Loan and including any amounts due and payable to Bank
Product Providers in respect of Bank Products up to the amount of the then
extant Bank Product Reserve) to Borrowers' Loan Account, which amounts
thereafter shall constitute Advances hereunder and shall accrue interest at the
rate then applicable to Advances hereunder. Any interest not paid when due shall
be compounded by being charged to Borrowers' Loan Account and shall thereafter
constitute Advances hereunder and shall accrue interest at the rate then
applicable to Advances that are Base Rate Loans hereunder.

                  (e)      COMPUTATION. All interest and fees chargeable under
the Loan Documents shall be computed on the basis of a 360 day year for the
actual number of days elapsed. In the event the Base Rate is changed from time
to time hereafter, the rates of interest hereunder based upon the Base Rate
automatically and immediately shall be increased or decreased by an amount equal
to such change in the Base Rate.

                                       51
<PAGE>

                  (f)      INTENT TO LIMIT CHARGES TO MAXIMUM LAWFUL RATE. In no
event shall the interest rate or rates payable under this Agreement, plus any
other amounts paid in connection herewith, exceed the highest rate permissible
under any law that a court of competent jurisdiction shall, in a final
determination, deem applicable. Borrowers and the Lender Group, in executing and
delivering this Agreement, intend legally to agree upon the rate or rates of
interest and manner of payment stated within it; provided, however, that,
anything contained herein to the contrary notwithstanding, if said rate or rates
of interest or manner of payment exceeds the maximum allowable under Applicable
Laws, then, ipso facto, as of the date of this Agreement, Borrowers are and
shall be liable only for the payment of such maximum as allowed by law, and
payment received from Borrowers in excess of such legal maximum, whenever
received, shall be applied to reduce the principal balance of the Obligations to
the extent of such excess.

         2.7      CASH MANAGEMENT.

                  (a)      Borrowers shall, and shall cause each of the
Guarantors to, (i) establish and maintain cash management services of a type and
on terms satisfactory to Agent at one or more of the banks set forth on Schedule
2.7(a) (each, a "Cash Management Bank"), and shall immediately after the Closing
Date request in writing and otherwise take such reasonable steps to ensure that
all of their Account Debtors forward payment of the amounts owed by them
directly to such Cash Management Bank, and (ii) deposit or cause to be deposited
promptly, and in any event no later than the first Business Day after the date
of receipt thereof, all Collections (including those sent directly by their
Account Debtors to a Cash Management Bank or Collections received at a retail
location of any Borrower or any Guarantor) into a bank account in Agent's name
(a "Cash Management Account") at one of the Cash Management Banks.
Notwithstanding any other provision to the contrary, the New AMERCO Notes
Accounts shall not be deemed to be Cash Management Accounts.

                  (b)      The Cash Management Bank maintaining the
Concentration Account and such other Cash Management Banks as may be required by
Agent shall establish and maintain Cash Management Agreements with Agent and
Borrowers, in form and substance acceptable to Agent. Each such Cash Management
Agreement shall provide, among other things, that (i) all items of payment
deposited in such Cash Management Account and proceeds thereof are held by such
Cash Management Bank as agent or bailee-in-possession for Agent, (ii) the Cash
Management Bank has no rights of setoff or recoupment or any other claim against
the applicable Cash Management Account, other than for payment of its service
fees and other charges directly related to the administration of such Cash
Management Account and for returned checks or other items of payment, and (iii)
it immediately will forward by daily sweep all amounts in the applicable Cash
Management Account to the Concentration Account. Upon the occurrence of an Event
of Default and in accordance with the terms of and subject to the conditions set
forth in the Cash Management Agreement applicable to the Concentration Account,
all amounts received in the Concentration Account shall be swept into the
Agent's Account.

                  (c)      So long as no Default or Event of Default has
occurred and is continuing, Administrative Borrower may amend Schedule 2.7(a) to
add or replace a Cash Management Account Bank or Cash Management Account;
provided, however, that (i) such prospective Cash Management Bank shall be
reasonably satisfactory to Agent and Agent shall have consented in

                                       52
<PAGE>

writing in advance to the opening of such Cash Management Account with the
prospective Cash Management Bank, and (ii) prior to the time of the opening of
such Cash Management Account, Borrowers or Guarantors, as applicable, and such
prospective Cash Management Bank shall have executed and delivered to Agent a
Cash Management Agreement. Borrowers or Guarantor, as applicable, shall close
any of their Cash Management Accounts (and establish replacement cash management
accounts in accordance with the foregoing sentence) promptly and in any event
within 30 days of notice from Agent that the creditworthiness of any Cash
Management Bank is no longer acceptable in Agent's reasonable judgment, or as
promptly as practicable and in any event within 60 days of notice from Agent
that the operating performance, funds transfer, or availability procedures or
performance of the Cash Management Bank with respect to Cash Management Accounts
or Agent's liability under any Cash Management Agreement with such Cash
Management Bank is no longer acceptable in Agent's reasonable judgment.

                  (d)      The Cash Management Accounts shall be cash collateral
accounts, with all cash, checks and similar items of payment in such accounts
securing payment of the Obligations, and in which Borrowers are hereby deemed to
have granted a Lien to Agent.

                  (e)      The parties hereby stipulate and agree that the Loan
Parties shall be allowed to maintain those certain cash collateral accounts for
the benefit of third parties, and in the amounts, set forth on Schedule 2.7(e);
provided, however no Loan Party shall increase the amount held in any such cash
collateral account without the prior written consent of Agent.

                  (f)      In no event shall any Loan Party deposit the proceeds
of any Collateral into any New AMERCO Note Account.

         2.8      CREDITING PAYMENTS. The receipt of any payment item by Agent
(whether from transfers to Agent by the Cash Management Banks pursuant to the
Cash Management Agreements or otherwise) shall not be considered a payment on
account unless such payment item is a wire transfer of immediately available
federal funds made to the Agent's Account or unless and until such payment item
is honored when presented for payment. Should any payment item not be honored
when presented for payment, then Borrowers shall be deemed not to have made such
payment and interest shall be calculated accordingly. Anything to the contrary
contained herein notwithstanding, any payment item shall be deemed received by
Agent only if it is received into the Agent's Account on a Business Day on or
before 11:00 a.m. (California time). If any item is received into the Agent's
Account on a non-Business Day or after 11:00 a.m. (California time) on a
Business Day, it shall be deemed to have been received by Agent as of the
opening of business on the immediately following Business Day.

         2.9      DESIGNATED ACCOUNT. Agent is authorized to make the Advances
and the Term Loan, and Issuing Lender is authorized to issue the Letters of
Credit, under this Agreement based upon telephonic or other instructions
received from anyone purporting to be an Authorized Person, or without
instructions if pursuant to Section 2.6(d). Administrative Borrower agrees to
establish and maintain the Designated Account with the Designated Account Bank
for the purpose of receiving the proceeds of the Advances requested by Borrowers
and made by Agent or the Lenders hereunder. Unless otherwise agreed by Agent and
Administrative Borrower, any Advance, Agent Advance, or Swing Loan requested by
Borrowers and made by Agent or the Lenders hereunder shall be made to the
Designated Account.

                                       53
<PAGE>

         2.10     MAINTENANCE OF LOAN ACCOUNT; STATEMENTS OF OBLIGATIONS. Agent
shall maintain an account on its books in the name of Borrowers (the "Loan
Account") on which Borrowers will be charged with the Term Loan, all Advances
(including Agent Advances and Swing Loans) made by Agent, Swing Lender, or the
Lenders to Borrowers or for Borrowers' account, the Letters of Credit issued by
Issuing Lender for Borrowers' account, and with all other payment Obligations
hereunder or under the other Loan Documents (except for Bank Product
Obligations), including, accrued interest, fees and expenses, and Lender Group
Expenses. In accordance with Section 2.8, the Loan Account will be credited with
all payments received by Agent from Borrowers or for Borrowers' account,
including all amounts received in the Agent's Account from any Cash Management
Bank. Agent shall render statements regarding the Loan Account to Administrative
Borrower, including principal, interest, fees, and including an itemization of
all charges and expenses constituting Lender Group Expenses owing, and such
statements, absent manifest error, shall be conclusively presumed to be correct
and accurate and constitute an account stated between Borrowers and the Lender
Group unless, within 30 days after receipt thereof by Administrative Borrower,
Administrative Borrower shall deliver to Agent written objection thereto
describing the error or errors contained in any such statements.

         2.11     FEES. Borrowers shall pay to Agent the following fees and
charges, which fees and charges shall be fully earned and due and non-refundable
when paid (irrespective of whether this Agreement is terminated thereafter):

                  (a)      UNUSED LINE FEE. On the first day of each fiscal
quarter during the term of this Agreement, an unused line fee (the "Unused Line
Fee"), for the benefit of the Lenders with a Revolver Commitment in accordance
with their Pro Rata Shares, in the amount equal to 0.50% per annum times the
result of (a) the Maximum Revolver Amount, less (b) the sum of (i) the average
Daily Balance of Advances that were outstanding during the immediately preceding
fiscal quarter, plus (ii) the average Daily Balance of the Letter of Credit
Usage during the immediately preceding fiscal quarter; provided, however, the
Unused Line Fee shall not begin to accrue until the earlier of the Closing Date
and March 15, 2004,

                  (b)      FEE LETTER FEES. As and when due and payable under
the terms of the Fee Letter, the fees set forth in the Fee Letter, and

                  (c)      AUDIT, APPRAISAL, AND VALUATION CHARGES. Audit,
appraisal, and valuation fees and charges as follows, (i) a fee of $850 per day,
per auditor, plus out-of-pocket expenses for each financial audit of a Borrower
performed by personnel employed by Agent, and (ii) the actual charges paid or
incurred by Agent if it elects to employ the services of one or more third
Persons to perform financial audits of Borrowers, to appraise the Collateral, or
any portion thereof, or to assess a Borrower's business valuation.

         2.12     LETTERS OF CREDIT.

                  (a)      Subject to the terms and conditions of this
Agreement, the Issuing Lender agrees to issue letters of credit for the account
of Borrowers (each, an "L/C") or to purchase participations or execute
indemnities or reimbursement obligations (each such undertaking, an "L/C
Undertaking") with respect to letters of credit issued by an Underlying Issuer
(as of the Closing Date, the prospective Underlying Issuer is to be Wells Fargo)
for the account of

                                       54
<PAGE>

Borrowers, including, without limitation, all Letters of Credit outstanding on
the Closing Date and issued by Wells Fargo pursuant to the DIP Loan Agreement.
As of the Closing Date, all Letters of Credit (as defined therein) under the DIP
Loan Agreement are listed on Schedule 2.12 hereof, and such Letters of Credit
shall be deemed to be Letters of Credit issued and outstanding pursuant to the
terms of this Agreement. To request the issuance of an L/C or an L/C Undertaking
(or the amendment, renewal, or extension of an outstanding L/C or L/C
Undertaking), Administrative Borrower shall hand deliver or telecopy (or
transmit by electronic communication, if arrangements for doing so have been
approved by the Issuing Lender) to the Issuing Lender and Agent (reasonably in
advance of the requested date of issuance, amendment, renewal, or extension) a
notice requesting the issuance of an L/C or L/C Undertaking, or identifying the
L/C or L/C Undertaking to be amended, renewed, or extended, the date of
issuance, amendment, renewal, or extension, the date on which such L/C or L/C
Undertaking is to expire, the amount of such L/C or L/C Undertaking, the name
and address of the beneficiary thereof (or of the Underlying Letter of Credit,
as applicable), and such other information as shall be necessary to prepare,
amend, renew, or extend such L/C or L/C Undertaking. If requested by the Issuing
Lender, Borrowers also shall be an applicant under the application with respect
to any Underlying Letter of Credit that is to be the subject of an L/C
Undertaking. The Issuing Lender shall have no obligation to issue a Letter of
Credit if any of the following would result after giving effect to the requested
Letter of Credit:

                           (i)      the Letter of Credit Usage would exceed the
                  Borrowing Base less the amount of outstanding Advances less
                  the outstanding balance of the Term Loan, or

                           (ii)     the Letter of Credit Usage would exceed
                  $50,000,000, or

                           (iii)    the Letter of Credit Usage would exceed the
                  Maximum Revolver Amount less the then extant amount of
                  outstanding Advances.

                  (b)      Borrowers and the Lender Group acknowledge and agree
that certain Underlying Letters of Credit may be issued to support letters of
credit that already are outstanding as of the Closing Date. Each Letter of
Credit (and corresponding Underlying Letter of Credit) shall be in form and
substance acceptable to the Issuing Lender (in the exercise of its Permitted
Discretion), including the requirement that the amounts payable thereunder must
be payable in Dollars. If Issuing Lender is obligated to advance funds under a
Letter of Credit, Borrowers immediately shall reimburse such L/C Disbursement to
Issuing Lender by paying to Agent an amount equal to such L/C Disbursement not
later than 11:00 a.m. (California time), on the date that such L/C Disbursement
is made, if Administrative Borrower shall have received written or telephonic
notice of such L/C Disbursement prior to 10:00 a.m. (California time), on such
date, or, if such notice has not been received by Administrative Borrower prior
to such time on such date, then not later than 11:00 a.m. (California time), on
(i) the Business Day that Administrative Borrower receives such notice, if such
notice is received prior to 10:00 a.m. (California time), on the date of
receipt, and, in the absence of reimbursement within such time frame, the L/C
Disbursement immediately and automatically shall be deemed to be an Advance
hereunder and, thereafter, shall bear interest at the rate then applicable to
Advances that are Base Rate Loans under Section 2.6. To the extent an L/C
Disbursement is deemed to be an Advance hereunder, Borrowers' obligation to
reimburse such L/C Disbursement shall be discharged and

                                       55
<PAGE>

replaced by the resulting Advance. Promptly following receipt by Agent of any
payment from Borrowers pursuant to this paragraph, Agent shall distribute such
payment to the Issuing Lender or, to the extent that Lenders have made payments
pursuant to Section 2.12(c) to reimburse the Issuing Lender, then to such
Lenders and the Issuing Lender as their interest may appear.

                  (c)      Promptly following receipt of a notice of L/C
Disbursement pursuant to Section 2.12(a), each Lender with a Revolver Commitment
agrees to fund its Pro Rata Share of any Advance deemed made pursuant to the
foregoing subsection on the same terms and conditions as if Borrowers had
requested such Advance and Agent shall promptly pay to Issuing Lender the
amounts so received by it from the Lenders. By the issuance of a Letter of
Credit (or an amendment to a Letter of Credit increasing the amount thereof) and
without any further action on the part of the Issuing Lender or the Lenders with
a Revolver Commitment, the Issuing Lender shall be deemed to have granted to
each Lender with a Revolver Commitment, and each Lender with a Revolver
Commitment shall be deemed to have purchased, a participation in each Letter of
Credit, in an amount equal to its Pro Rata Share of the Risk Participation
Liability of such Letter of Credit, and each such Lender agrees to pay to Agent,
for the account of the Issuing Lender, such Lender's Pro Rata Share of any
payments made by the Issuing Lender under such Letter of Credit. In
consideration and in furtherance of the foregoing, each Lender with a Revolver
Commitment hereby absolutely and unconditionally agrees to pay to Agent, for the
account of the Issuing Lender, such Lender's Pro Rata Share of each L/C
Disbursement made by the Issuing Lender and not reimbursed by Borrowers on the
date due as provided in clause (a) of this Section, or of any reimbursement
payment required to be refunded to Borrowers for any reason. Each Lender with a
Revolver Commitment acknowledges and agrees that its obligation to deliver to
Agent, for the account of the Issuing Lender, an amount equal to its respective
Pro Rata Share of each L/C Disbursement made by the Issuing Lender pursuant to
this Section 2.12(c) shall be absolute and unconditional and such remittance
shall be made notwithstanding the occurrence or continuation of an Event of
Default or Default or the failure to satisfy any condition set forth in Section
3 hereof. If any such Lender fails to make available to Agent the amount of such
Lender's Pro Rata Share of any L/C Disbursement made by the Issuing Lender in
respect of such Letter of Credit as provided in this Section, such Lender shall
be deemed to be a Defaulting Lender. Agent (for the account of the Issuing
Lender) shall be entitled to recover such amount on demand from such Lender
together with interest thereon at the Defaulting Lender Rate until paid in full.

                  (d)      Each Borrower hereby agrees to indemnify, save,
defend, and hold the Lender Group harmless from any loss, cost, expense, or
liability, and reasonable attorneys fees incurred by the Lender Group arising
out of or in connection with any Letter of Credit; provided, however, that no
Borrower shall be obligated hereunder to indemnify for any loss, cost, expense,
or liability that is caused by the gross negligence or willful misconduct of the
Issuing Lender or any other member of the Lender Group. Each Borrower agrees to
be bound by the Underlying Issuer's regulations and interpretations of any
Underlying Letter of Credit or by Issuing Lender's interpretations of any L/C
issued by Issuing Lender to or for such Borrower's account, even though this
interpretation may be different from such Borrower's own, and each Borrower
understands and agrees that the Lender Group shall not be liable for any error,
negligence, or mistake, whether of omission or commission, in following
Borrowers' instructions or those contained in the Letter of Credit or any
modifications, amendments, or supplements thereto. Each Borrower understands
that the L/C Undertakings may require Issuing Lender to indemnify

                                       56
<PAGE>

the Underlying Issuer for certain costs or liabilities arising out of claims by
Borrowers against such Underlying Issuer. Each Borrower hereby agrees to
indemnify, save, defend, and hold the Lender Group harmless with respect to any
loss, cost, expense (including reasonable attorneys fees), or liability incurred
by the Lender Group under any L/C Undertaking as a result of the Lender Group's
indemnification of any Underlying Issuer; provided, however, that no Borrower
shall be obligated hereunder to indemnify for any loss, cost, expense, or
liability that is caused by the gross negligence or willful misconduct of the
Issuing Lender or any other member of the Lender Group.

                  (e)      Each Borrower hereby authorizes and directs any
Underlying Issuer to deliver to the Issuing Lender all instruments, documents,
and other writings and property received by such Underlying Issuer pursuant to
such Underlying Letter of Credit and to accept and rely upon the Issuing
Lender's instructions with respect to all matters arising in connection with
such Underlying Letter of Credit and the related application.

                  (f)      Any and all charges, commissions, fees, and costs
incurred by the Issuing Lender relating to Underlying Letters of Credit shall be
Lender Group Expenses for purposes of this Agreement and immediately shall be
reimbursable by Borrowers to Agent for the account of the Issuing Lender; it
being acknowledged and agreed by each Borrower that, as of the Closing Date, the
usage charge imposed by the prospective Underlying Issuer is .825% per annum
times the face amount of each Underlying Letter of Credit, that such issuance
charge may be changed from time to time, and that the Underlying Issuer also
imposes a schedule of charges for amendments, extensions, drawings, and
renewals.

                  (g)      If by reason of (i) any change after the Closing Date
in any Applicable Law, treaty, rule, or regulation or any change in the
interpretation or application thereof by any Governmental Authority, or (ii)
compliance by the Underlying Issuer or the Lender Group with any direction,
request, or requirement (irrespective of whether having the force of law) of any
Governmental Authority or monetary authority including, Regulation D of the
Federal Reserve Board as from time to time in effect (and any successor
thereto):

                           (i)      any reserve, deposit, or similar requirement
                  is or shall be imposed or modified in respect of any Letter of
                  Credit issued hereunder, or

                           (ii)     there shall be imposed on the Underlying
                  Issuer or the Lender Group any other condition regarding any
                  Underlying Letter of Credit or any Letter of Credit issued
                  pursuant hereto;

and the result of the foregoing is to increase, directly or indirectly, the cost
to the Lender Group of issuing, making, guaranteeing, or maintaining any Letter
of Credit or to reduce the amount receivable in respect thereof by the Lender
Group, then, and in any such case, Agent may (and at the direction of the
Required Lenders, Agent shall), at any time within a reasonable period after the
additional cost is incurred or the amount received is reduced, notify
Administrative Borrower, and Borrowers shall pay on demand such amounts as Agent
may specify to be necessary to compensate the Lender Group for such additional
cost or reduced receipt, together with interest on such amount from the date of
such demand until payment in full thereof at the rate then applicable to Base
Rate Loans hereunder. The determination by Agent of any amount

                                       57
<PAGE>

due pursuant to this Section, as set forth in a certificate setting forth the
calculation thereof in reasonable detail, shall, in the absence of manifest or
demonstrable error, be final and conclusive and binding on all of the parties
hereto.

         2.13     LIBOR OPTION.

                  (a)      INTEREST AND INTEREST PAYMENT DATES. In lieu of
having interest charged at the rate based upon the Base Rate, Borrowers shall
have the option (the "LIBOR Option") to have interest on all or a portion of the
Advances be charged at a rate of interest based upon the LIBOR Rate. The Term
Loan shall be a LIBOR Rate Loan at all times after the Closing Date until such
time as Agent may elect to convert the Term Loan to a Base Rate Loan upon the
occurrence and during the continuation of an Event of Default. Interest on LIBOR
Rate Loans shall be payable on the earliest of (i) the last day of the Interest
Period applicable thereto, unless the Interest Period is longer than 3 months,
in which case interest shall be payable on (A) each 3-month anniversary of the
commencement date of such Interest Period and (B) the last day of such Interest
Period, (ii) the occurrence of an Event of Default in consequence of which the
Required Lenders or Agent on behalf thereof elect to accelerate the maturity of
all or any portion of the Obligations, or (iii) termination of this Agreement
pursuant to the terms hereof. On the last day of each applicable Interest
Period, unless Administrative Borrower properly has exercised the LIBOR Option
with respect thereto, the interest rate applicable to such LIBOR Rate Loan
automatically shall convert to the rate of interest then applicable to Base Rate
Loans of the same type hereunder. At any time that an Event of Default has
occurred and is continuing, Borrowers no longer shall have the option to request
that Advances or the Term Loan bear interest at the LIBOR Rate and Agent shall
have the right to convert the interest rate on all outstanding LIBOR Rate Loans
to the rate then applicable to Base Rate Loans hereunder.

                  (b)      LIBOR ELECTION.

                           (i)      Administrative Borrower may, at any time and
                  from time to time, so long as no Event of Default has occurred
                  and is continuing, elect to exercise the LIBOR Option by
                  notifying Agent prior to 11:00 a.m. (California time) at least
                  3 Business Days prior to the commencement of the proposed
                  Interest Period (the "LIBOR Deadline"). Notice of
                  Administrative Borrower's election of the LIBOR Option for a
                  permitted portion of the Advances (or, with respect to the
                  selection of a new Interest Period, the Term Loan) and an
                  Interest Period pursuant to this Section shall be made by
                  delivery to Agent of a LIBOR Notice received by Agent before
                  the LIBOR Deadline, or by telephonic notice received by Agent
                  before the LIBOR Deadline (to be confirmed by delivery to
                  Agent of a LIBOR Notice received by Agent prior to 5:00 p.m.
                  (California time) on the same day). Promptly upon its receipt
                  of each such LIBOR Notice, Agent shall provide a copy thereof
                  to each of the Lenders having a Revolver Commitment.

                           (ii)     Each LIBOR Notice shall be irrevocable and
                  binding on Borrowers. In connection with each LIBOR Rate Loan,
                  each Borrower shall indemnify, defend, and hold Agent and the
                  Lenders harmless against any loss, cost, or expense incurred
                  by Agent or any Lender as a result of (a) the payment of any
                  principal of any LIBOR Rate Loan other than on the last day of
                  an Interest

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                  Period applicable thereto (including as a result of an Event
                  of Default), (b) the conversion of any LIBOR Rate Loan other
                  than on the last day of the Interest Period applicable
                  thereto, or (c) the failure to borrow, convert, continue or
                  prepay any LIBOR Rate Loan on the date specified in any LIBOR
                  Notice delivered pursuant hereto (such losses, costs, and
                  expenses, collectively, "Funding Losses"). Funding Losses
                  shall, with respect to Agent or any Lender, be deemed to equal
                  the amount determined by Agent or such Lender to be the
                  excess, if any, of (i) the amount of interest that would have
                  accrued on the principal amount of such LIBOR Rate Loan had
                  such event not occurred, at the LIBOR Rate that would have
                  been applicable thereto, for the period from the date of such
                  event to the last day of the then current Interest Period
                  therefor (or, in the case of a failure to borrow, convert or
                  continue, for the period that would have been the Interest
                  Period therefor), minus (ii) the amount of interest that would
                  accrue on such principal amount for such period at the
                  interest rate which Agent or such Lender would be offered were
                  it to be offered, at the commencement of such period, Dollar
                  deposits of a comparable amount and period in the London
                  interbank market. A certificate of Agent or a Lender delivered
                  to Administrative Borrower setting forth any amount or amounts
                  that Agent or such Lender is entitled to receive pursuant to
                  this Section shall be conclusive absent manifest error.

                           (iii)    Borrowers shall have not more than 6 LIBOR
                  Rate Loans in effect at any given time. Borrowers only may
                  exercise the LIBOR Option for LIBOR Rate Loans of at least
                  $1,000,000 and integral multiples of $500,000 in excess
                  thereof.

                  (c)      PREPAYMENTS. Borrowers may prepay LIBOR Rate Loans at
any time; provided, however, that in the event that LIBOR Rate Loans are prepaid
on any date that is not the last day of the Interest Period applicable thereto,
including as a result of any automatic prepayment through the required
application by Agent of proceeds of Collections in accordance with Section
2.4(b) or for any other reason, including early termination of the term of this
Agreement or acceleration of all or any portion of the Obligations pursuant to
the terms hereof, each Borrower shall indemnify, defend, and hold Agent and the
Lenders and their Participants harmless against any and all Funding Losses in
accordance with clause (b) above.

                  (d)      SPECIAL PROVISIONS APPLICABLE TO LIBOR RATE.

                           (i)      The LIBOR Rate may be adjusted by Agent with
                  respect to any Lender on a prospective basis to take into
                  account any additional or increased costs to such Lender of
                  maintaining or obtaining any eurodollar deposits or increased
                  costs due to changes in Applicable Laws occurring subsequent
                  to the commencement of the then applicable Interest Period,
                  including changes in tax laws (except changes of general
                  applicability in corporate income tax laws) and changes in the
                  reserve requirements imposed by the Board of Governors of the
                  Federal Reserve System (or any successor), excluding the
                  Reserve Percentage, which additional or increased costs would
                  increase the cost of funding loans bearing interest at the
                  LIBOR Rate. In any such event, the affected Lender shall give
                  Administrative Borrower and Agent notice of such a
                  determination and

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<PAGE>

                  adjustment and Agent promptly shall transmit the notice to
                  each other Lender and, upon its receipt of the notice from the
                  affected Lender, Administrative Borrower may, by notice to the
                  affected Lender (y) require such Lender to furnish to
                  Administrative Borrower a statement setting forth the basis
                  for adjusting such LIBOR Rate and the method for determining
                  the amount of such adjustment, or (z) repay the LIBOR Rate
                  Loans with respect to which such adjustment is made (together
                  with any amounts due under clause (b)(ii) above).

                           (ii)     In the event that any change in market
                  conditions or any law, regulation, treaty, or directive, or
                  any change therein or in the interpretation of application
                  thereof, shall at any time after the date hereof, in the
                  reasonable opinion of any Lender, make it unlawful or
                  impractical for such Lender to fund or maintain LIBOR Advances
                  or to continue such funding or maintaining, or to determine or
                  charge interest rates at the LIBOR Rate, such Lender shall
                  give notice of such changed circumstances to Agent and
                  Administrative Borrower and Agent promptly shall transmit the
                  notice to each other Lender and (y) in the case of any LIBOR
                  Rate Loans of such Lender that are outstanding, the date
                  specified in such Lender's notice shall be deemed to be the
                  last day of the Interest Period of such LIBOR Rate Loans, and
                  interest upon the LIBOR Rate Loans of such Lender thereafter
                  shall accrue interest at the rate then applicable to Base Rate
                  Loans, and (z) Borrowers shall not be entitled to elect the
                  LIBOR Option until such Lender determines that it would no
                  longer be unlawful or impractical to do so.

                  (e)      NO REQUIREMENT OF MATCHED FUNDING. Anything to the
contrary contained herein notwithstanding, neither Agent, nor any Lender, nor
any of their Participants, is required actually to acquire eurodollar deposits
to fund or otherwise match fund any Obligation as to which interest accrues at
the LIBOR Rate. The provisions of this Section shall apply as if each Lender or
its Participants had match-funded any Obligation as to which interest is
accruing at the LIBOR Rate by acquiring eurodollar deposits for each Interest
Period in the amount of the LIBOR Rate Loans.

         2.14     CAPITAL REQUIREMENTS. If, after the date hereof, any Lender
determines that (i) the adoption of or change in any law, rule, regulation or
guideline regarding capital requirements for banks or bank holding companies, or
any change in the interpretation or application thereof by any Governmental
Authority charged with the administration thereof, or (ii) compliance by such
Lender or its parent bank holding company with any guideline, request or
directive of any such entity regarding capital adequacy (whether or not having
the force of law), will have the effect of reducing the return on such Lender's
or such holding company's capital as a consequence of such Lender's Commitments
hereunder to a level below that which such Lender or such holding company could
have achieved but for such adoption, change, or compliance (taking into
consideration such Lender's or such holding company's then existing policies
with respect to capital adequacy and assuming the full utilization of such
entity's capital) by any amount deemed by such Lender to be material, then such
Lender may notify Administrative Borrower and Agent thereof. Following receipt
of such notice, Borrowers agree to pay such Lender on demand the amount of such
reduction of return of capital as and when such reduction is determined, payable
within 90 days after presentation by such Lender of a statement in the amount
and setting forth in reasonable detail such Lender's calculation thereof and the

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assumptions upon which such calculation was based (which statement shall be
deemed true and correct absent manifest error). In determining such amount, such
Lender may use any reasonable averaging and attribution methods.

         2.15     JOINT AND SEVERAL LIABILITY OF BORROWERS.

                  (a)      Each Borrower is accepting joint and several
liability hereunder and under the other Loan Documents in consideration of the
financial accommodations to be provided by the Agent and the Lenders under this
Agreement, for the mutual benefit, directly and indirectly, of each Borrower and
in consideration of the undertakings of the other Borrowers to accept joint and
several liability for the Obligations.

                  (b)      Each Borrower, jointly and severally, hereby
irrevocably and unconditionally accepts, not merely as a surety but also as a
co-debtor, joint and several liability with the other Borrowers, with respect to
the payment and performance of all of the Obligations (including, without
limitation, any Obligations arising under this Section 2.15), it being the
intention of the parties hereto that all the Obligations shall be the joint and
several obligations of each Borrower without preferences or distinction among
them.

                  (c)      If and to the extent that any Borrower shall fail to
make any payment with respect to any of the Obligations as and when due or to
perform any of the Obligations in accordance with the terms thereof, then in
each such event the other Borrowers will make such payment with respect to, or
perform, such Obligation.

                  (d)      The Obligations of each Borrower under the provisions
of this Section 2.15 constitute the absolute and unconditional, full recourse
Obligations of each Borrower enforceable against each such Borrower to the full
extent of its properties and assets, irrespective of the validity, regularity or
enforceability of this Agreement or any other circumstances whatsoever.

                  (e)      Except as otherwise expressly provided in this
Agreement, each Borrower hereby waives notice of acceptance of its joint and
several liability, notice of any Advances or Letters of Credit issued under or
pursuant to this Agreement, notice of the occurrence of any Default, Event of
Default, or of any demand for any payment under this Agreement, notice of any
action at any time taken or omitted by Agent or Lenders under or in respect of
any of the Obligations, any requirement of diligence or to mitigate damages and,
generally, to the extent permitted by Applicable Laws, all demands, notices and
other formalities of every kind in connection with this Agreement (except as
otherwise provided in this Agreement). Each Borrower hereby assents to, and
waives notice of, any extension or postponement of the time for the payment of
any of the Obligations, the acceptance of any payment of any of the Obligations,
the acceptance of any partial payment thereon, any waiver, consent or other
action or acquiescence by Agent or Lenders at any time or times in respect of
any default by any Borrower in the performance or satisfaction of any term,
covenant, condition or provision of this Agreement, any and all other
indulgences whatsoever by Agent or Lenders in respect of any of the Obligations,
and the taking, addition, substitution or release, in whole or in part, at any
time or times, of any security for any of the Obligations or the addition,
substitution or release, in whole or in part, of any Borrower. Without limiting
the generality of the foregoing, each

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<PAGE>

Borrower assents to any other action or delay in acting or failure to act on the
part of any Agent or Lender with respect to the failure by any Borrower to
comply with any of its respective Obligations, including, without limitation,
any failure strictly or diligently to assert any right or to pursue any remedy
or to comply fully with Applicable Laws or regulations thereunder, which might,
but for the provisions of this Section 2.15, afford grounds for terminating,
discharging or relieving any Borrower, in whole or in part, from any of its
Obligations under this Section 2.15, it being the intention of each Borrower
that, so long as any of the Obligations hereunder remain unsatisfied, the
Obligations of such Borrower under this Section 2.15 shall not be discharged
except by performance and then only to the extent of such performance. The
Obligations of each Borrower under this Section 2.15 shall not be diminished or
rendered unenforceable by any winding up, reorganization, arrangement,
liquidation, reconstruction or similar proceeding with respect to any Borrower
or any Agent or Lender. The joint and several liability of the Persons composing
Borrowers hereunder shall continue in full force and effect notwithstanding any
absorption, merger, amalgamation or any other change whatsoever in the name,
constitution or place of formation of any of the Persons composing Borrowers or
any Agent or Lender.

                  (f)      Each Borrower represents and warrants to Agent and
Lenders that such Borrower is currently informed of the financial condition of
Borrowers and of all other circumstances which a diligent inquiry would reveal
and which bear upon the risk of nonpayment of the Obligations. Each Borrower
further represents and warrants to Agent and Lenders that such Borrower has read
and understands the terms and conditions of the Loan Documents. Each Borrower
hereby covenants that such Borrower will continue to keep informed of Borrowers'
financial condition, the financial condition of other guarantors, if any, and of
all other circumstances which bear upon the risk of nonpayment or nonperformance
of the Obligations.

                  (g)      The provisions of this Section 2.15 are made for the
benefit of the Agent, the Lenders and their respective successors and assigns,
and may be enforced by it or them from time to time against any or all of
Borrowers as often as occasion therefor may arise and without requirement on the
part of any such Agent, Lender, successor or assign first to marshal any of its
or their claims or to exercise any of its or their rights against any of the
other Borrowers or to exhaust any remedies available to it or them against any
of the other Borrowers or to resort to any other source or means of obtaining
payment of any of the Obligations hereunder or to elect any other remedy. The
provisions of this Section 2.15 shall remain in effect until all of the
Obligations shall have been paid in full. If at any time, any payment, or any
part thereof, made in respect of any of the Obligations, is rescinded or must
otherwise be restored or returned by any Agent or Lender upon the insolvency,
bankruptcy or reorganization of any Borrower, or otherwise, the provisions of
this Section 2.15 will forthwith be reinstated in effect, as though such payment
had not been made.

                  (h)      Each Borrower hereby agrees that it will not enforce
any of its rights of contribution or subrogation against the other Borrowers
with respect to any liability incurred by it hereunder or under any of the other
Loan Documents, any payments made by it to Agent or the Lenders with respect to
any of the Obligations or any collateral security therefor until such time as
all of the Obligations have been paid in full in cash. Any claim which any
Borrower may have against any other Borrower with respect to any payments to
Agent or Lender hereunder or under any other Loan Documents are hereby expressly
made subordinate and junior in right of

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<PAGE>

payment, without limitation as to any increases in the Obligations arising
hereunder or thereunder, to the prior payment in full in cash of the Obligations
and, in the event of any insolvency, bankruptcy, receivership, liquidation,
reorganization or other similar proceeding under the laws of any jurisdiction
relating to any Borrower, its debts or its assets, whether voluntary or
involuntary, all such Obligations shall be paid in full in cash before any
payment or distribution of any character, whether in cash, securities or other
property, shall be made to any other Borrower therefor.

                  (i)      Each Borrower hereby agrees that, after the
occurrence and during the continuance of any Default or Event of Default, the
payment of any amounts due with respect to the indebtedness owing by any
Borrower to any other Borrower is hereby subordinated to the prior payment in
full in cash of the Obligations. Each Borrower hereby agrees that after the
occurrence and during the continuance of any Default or Event of Default, such
Borrower will not demand, sue for or otherwise attempt to collect any
indebtedness of any other Borrower owing to such Borrower until the Obligations
shall have been paid in full in cash. If, notwithstanding the foregoing
sentence, such Borrower shall collect, enforce or receive any amounts in respect
of such indebtedness, such amounts shall be collected, enforced and received by
such Borrower as trustee for the Agent, and the Agent shall deliver any such
amounts to Agent for application to the Obligations in accordance with Section
2.4(b).

         2.16     REGISTERED NOTES. Agent agrees to record each Advance and each
Lender's Term Loan on the Register referenced in Section 14.1(h). Each Advance
and each Lender's Term Loan recorded on the Register (each a "Registered Loan")
may not be evidenced by promissory notes other than Registered Notes (as defined
below). Upon the registration of any Advance or any Lender's Term Loan,
Borrowers agree at the request of any Lender, to execute and deliver to such
Lender a promissory note, in conformity with the terms of this Agreement, in
registered form to evidence such Registered Loan, in form and substance
reasonably satisfactory to such Lender, and registered as provided in Section
14.1(h) (a "Registered Note"), payable to the order of such Lender and otherwise
duly completed, provided that any Registered Note issued to evidence Advances or
any Lender's Term Loan shall be issued in the principal amount of the applicable
Lender's Revolver Commitment or Term Loan Commitment. Once recorded on the
Register, each Advance and each Lender's Term Loan may not be removed from the
Register so long as it or they remain outstanding, and a Registered Note may not
be exchanged for a promissory note that it is not a Registered Note.

3.       CONDITIONS; TERM OF AGREEMENT.

         3.1      CONDITIONS PRECEDENT TO THE INITIAL EXTENSION OF CREDIT. The
obligation of the Lender Group (or any member thereof) to make the initial
Advance (or otherwise to extend any credit provided for hereunder), is subject
to the fulfillment, to the satisfaction of the Lender Group, of each of the
conditions precedent set forth below:

                  (a)      the Closing Date shall occur on or before April 1,
2004;

                  (b)      Agent shall have received one or more Uniform
Commercial Code filing authorization letters, duly executed by each Loan Party
or their representative, together with appropriate financing statements on Form
UCC-1 and PPSA financing statements duly filed in

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<PAGE>

such office or offices as may be necessary or, in the opinion of Agent,
desirable to perfect Agent's Liens in and to the Collateral of such Loan Party,
and the Agent shall have received confirmation of the filing of all such
financing statements;

                  (c)      Agent shall have received Uniform Commercial Code,
tax and judgment lien searches confirming the absence of, and mortgage releases,
termination statements and other release documents from JPMorgan and any other
Person necessary to release any Liens on the Collateral, other than the
Permitted Liens;

                  (d)      Agent shall have received each of the following
documents, in form and substance reasonably satisfactory to Agent, duly
executed, and each such document shall be in full force and effect:

                           (i)      the Agency Letter,

                           (ii)     the Cash Management Agreements,

                           (iii)    the Collateral Access Agreements with
                  respect to the locations set forth on Schedule 3.1(d),

                           (iv)     the Consents,

                           (v)      the Control Agreement for the Concentration
                  Account,

                           (vi)     the Copyright Security Agreement,

                           (vii)    the Disbursement Letter,

                           (viii)   the Due Diligence Letter,

                           (ix)     the Environmental Indemnity Agreements,

                           (x)      the Fee Letter,

                           (xi)     the Guarantor Security Agreement, which
                  shall, among other things, grant Agent a Lien on the
                  Reservation Management System,

                           (xii)    the Guaranty,

                           (xiii)   the Term Loan B Intercreditor Agreement,

                           (xiv)    the Mortgages and related fixture filings,

                           (xv)     the Officers' Certificate,

                           (xvi)    the Patent and Trademark Security Agreement,

                           (xvii)   the Quebec Security Documents,

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<PAGE>

                           (xviii)  the Release of Claims, and

                           (xix)    the Stock Pledge Agreement, together with
                  all certificates representing the shares of Stock pledged
                  thereunder, as well as Stock powers with respect thereto
                  endorsed in blank.

                  (e)      Agent shall have received a certificate from the
secretary of each Borrower attesting to the resolutions of such Borrower's Board
of Directors authorizing its execution, delivery, and performance of this
Agreement and the other Loan Documents to which such Borrower is a party and
authorizing specific officers of such Borrower to execute the same;

                  (f)      Agent shall have received copies of each Borrower's
Governing Documents, as amended, modified, or supplemented to the Closing Date,
certified by the Secretary of such Borrower and by the appropriate officer of
the jurisdiction of organization of such Borrower;

                  (g)      Agent shall have received a certificate of status
with respect to each Borrower, dated within 30 days of the Closing Date, such
certificate to be issued by the appropriate officer of the jurisdiction of
organization of such Borrower, which certificate shall indicate that such
Borrower is in good standing in such jurisdiction;

                  (h)      Agent shall have received certificates of status with
respect to each Borrower, each dated within 30 days of the Closing Date, such
certificates to be issued by the appropriate officer of the jurisdictions (other
than the jurisdiction of organization of such Borrower) in which its failure to
be duly qualified or licensed would constitute a Material Adverse Change, which
certificates shall indicate that such Borrower is in good standing in such
jurisdictions;

                  (i)      Agent shall have received a certificate from the
Secretary of each Guarantor attesting to the resolutions of such Guarantor's
Board of Directors authorizing its execution, delivery, and performance of the
Loan Documents to which such Guarantor is a party and authorizing specific
officers of such Guarantor to execute the same;

                  (j)      Agent shall have received copies of each Guarantor's
Governing Documents, as amended, modified, or supplemented to the Closing Date,
certified by the Secretary of such Guarantor and by the appropriate officer of
the jurisdiction of organization of such Guarantor;

                  (k)      Agent shall have received a certificate of status
with respect to each Guarantor, dated within 30 days of the Closing Date, such
certificate to be issued by the appropriate officer of the jurisdiction of
organization of such Guarantor, which certificate shall indicate that such
Guarantor is in good standing in such jurisdiction;

                  (l)      Agent shall have received certificates of status with
respect to each Guarantor, each dated within 30 days of the Closing Date, such
certificates to be issued by the appropriate officer of the jurisdictions (other
than the jurisdiction of organization of such Guarantor) in which its failure to
be duly qualified or licensed would constitute a Material

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<PAGE>

Adverse Change, which certificates shall indicate that such Guarantor is in good
standing in such jurisdictions;

                  (m)      Agent shall have received a certificate of insurance,
together with the endorsements thereto, as are required by Section 6.8, the form
and substance of which shall be reasonably satisfactory to Agent and its
counsel;

                  (n)      Agent shall have received opinions of Borrowers'
counsel (including any special counsel for real estate matters) in form and
substance reasonably satisfactory to the Lender Group, including without
limitation an opinion from Borrowers' counsel with respect to Vehicle perfection
matters and opinions from Agent's various local counsel as Agent may reasonably
request;

                  (o)      Agent shall have received reasonably satisfactory
evidence (including a certificate of the chief financial officer or other senior
officer of Parent) that all tax returns required to be filed by Borrowers and
their Subsidiaries have been timely filed and all taxes upon Borrowers and their
Subsidiaries or their respective properties, assets, income, and franchises
(including Real Property taxes, sales taxes and payroll taxes) have been paid
not less than 30 days before the earlier of (a) delinquency or (b) the
imposition of any additional amounts, fines or penalties or before the
expiration of any extension period, except such taxes that are the subject of a
Permitted Protest or for which a Title Reserve has been established;

                  (p)      Borrowers shall have the Required Availability after
giving effect to the initial extensions of credit hereunder;

                  (q)      The Lender Group shall have completed its business,
legal, and collateral due diligence, including an investigation of the business,
assets, operations, properties (including compliance with FIRREA), condition
(financial or otherwise), contingent liabilities, prospects and Material
Contracts, and verification of Borrowers' representations and warranties to the
Lender Group, the results of which shall be reasonably satisfactory to the
Lender Group;

                  (r)      Agent shall have received evidence that, upon the
making of the initial Advance and Term Loan hereunder, (i) Borrowers shall have
sufficient funds to pay (A) all outstanding Obligations (as defined therein)
under the DIP Loan Agreement, (B) all fees set forth in the Fee Letter and
hereunder, (C) all Lender Group Expenses incurred in connection with the
transactions evidenced by this Agreement and (D) all other obligations required
to be paid pursuant to the Reorganization Plan on the Effective Date, and (ii)
all such obligations set forth in clause (i) shall be paid in full with the
initial Advance and Term Loan;

                  (s)      Agent shall have received mortgagee title insurance
policies (or marked commitments to issue the same) for the Real Property
Collateral issued by a title insurance company reasonably satisfactory to Agent
(each a "Mortgage Policy" and, collectively, the "Mortgage Policies") in amounts
reasonably satisfactory to Agent assuring Agent that the Mortgages on such Real
Property Collateral owned by a Loan Party are valid and enforceable first
priority mortgage Liens on such Real Property Collateral owned by a Loan Party
free and clear of all defects and encumbrances except Permitted Liens, and the
Mortgage Policies otherwise shall be in form and substance reasonably
satisfactory to Agent;

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<PAGE>

                  (t)      Agent shall have received executed copies of (i) each
Material Contract, (ii) each Affiliate Contract, and (iii) each contract between
any Loan Party, on the one hand, or any of SAC Holding, SSI, PMSR or PM
Preferred, on the other hand (which, as of the Closing Date, are all of the
contracts listed on Schedule 3.1(t)), and a complete list of each Borrower's
Subsidiaries, together with a certificate of the Secretary of Administrative
Borrower certifying each such document as being a true, correct, and complete
copy thereof;

                  (u)      Borrowers shall have received all licenses, approvals
or evidence of other actions required by any Governmental Authority in
connection with the execution and delivery by Borrowers of this Agreement or any
other Loan Document or with the consummation of the transactions contemplated
hereby and thereby;

                  (v)      Borrowers and Guarantors shall have (i) completed the
procedures set forth in Section 5.25 for the registration of all Certificates of
Title, naming Agent as the first priority lienholder, with the States of
Arizona, Alaska and Hawaii and the delivery of such original Certificates of
Title after registration thereof to Roberta Holmes or Joan Gibson at Parent's
location at 2727 North Central, Phoenix, Arizona 85004, (ii) delivered to Agent
evidence of approval from the State of Arizona for Borrowers to process and
register the Certificates of Title, in form and substance reasonably
satisfactory to Agent, and (iii) delivered to Agent a fidelity insurance policy
naming Agent as loss payee or bond endorsed to Agent, in each case in form and
substance reasonably satisfactory to Agent;

                  (w)      Agent shall have received Schedule 3.1(w) from
Borrowers and Guarantors setting forth the book values of all box-trucks, cargo
vans and pickup trucks owned by the Loan Parties as of the Closing Date, subject
to Agent's first priority Liens, in form acceptable to Agent;

                  (x)      Agent shall have received Borrowers' Closing Date
Business Plan;

                  (y)      the Confirmation Order, in form and substance
reasonably satisfactory to Agent, approving the transactions contemplated hereby
shall have been entered by the Court and Agent shall have received a certified
copy of such Confirmation Order and such Confirmation Order shall not have been
reversed, stayed, amended or otherwise modified;

                  (z)      all of the conditions set forth in the Confirmation
Order and the Reorganization Plan for the Effective Date shall have been
satisfied;

                  (aa)     Agent shall have received copies of the New AMERCO
Note Documents and the Term Loan B Note Documents, each duly executed by the
parties thereto;

                  (bb)     Agent shall have received evidence that Parent is in
good standing with, and duly listed on, Nasdaq and that the common stock of
Parent is traded on Nasdaq without restriction;

                  (cc)     there shall not have been any changes in the senior
management of Parent after the Closing Date (as defined therein) of the DIP Loan
Agreement; and

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<PAGE>

                  (dd)     all other documents and legal matters in connection
with the transactions contemplated by this Agreement shall have been delivered,
executed, or recorded and shall be in form and substance reasonably satisfactory
to the Lender Group.

         3.2      CONDITIONS SUBSEQUENT TO THE INITIAL EXTENSION OF CREDIT. The
obligation of the Lender Group (or any member thereof) to continue to make
Advances (or otherwise extend credit hereunder) is subject to the fulfillment,
on or before the date applicable thereto, of each of the conditions subsequent
set forth below (the failure by Borrowers to so perform or cause to be performed
constituting an Event of Default):

                  (a)      within 30 days of the Closing Date, Borrowers shall
deliver to Agent certified copies of the policies of insurance, together with
the endorsements thereto, as are required by Section 6.8, the form and substance
of which shall be reasonably satisfactory to Agent and its counsel;

                  (b)      within 90 days of the Closing Date or such longer
time period thereafter as may be acceptable to Agent, Borrowers shall deliver to
Agent all Cash Management Agreements, duly executed and in full force and
effect, requested by Agent in its Permitted Discretion;

                  (c)      within 45 days of the Closing Date or such longer
time period thereafter as may be acceptable to Agent, Borrowers shall deliver to
Agent the Credit Card Agreements duly executed by the applicable credit card
processors and in full force and effect, the form and substance of which are
reasonably satisfactory to Agent;

                  (d)      within 60 days of the Closing Date, Borrowers shall
have received and delivered to Agent zoning letters, in form and substance
acceptable to Agent, duly executed by the appropriate Governmental Authorities,
for the Real Property Collateral located at the locations on Schedule 3.2(d);
and

                  (e)      within 60 days of the Closing Date, Agent shall have
received subordination, non-disturbance and attornment agreements duly executed
by the applicable Loan Party and tenant in favor of Agent with respect to the
properties set forth on Schedule 3.2(e), the form and substance of which are
reasonably satisfactory to Agent.

         3.3      CONDITIONS PRECEDENT TO ALL EXTENSIONS OF CREDIT. The
obligation of the Lender Group (or any member thereof) to make all Advances (or
to extend any other credit hereunder, other than Advances that are deemed to be
made pursuant to Section 2.12(b) with respect to any unreimbursed L/C
Disbursement for a funded Letter of Credit) shall be subject to the following
conditions precedent:

                  (a)      the representations and warranties contained in this
Agreement and the other Loan Documents shall be true and correct in all material
respects on and as of the date of such extension of credit, as though made on
and as of such date (except to the extent that such representations and
warranties relate solely to an earlier date);

                  (b)      no Default or Event of Default shall have occurred
and be continuing on the date of such extension of credit, nor shall either
result from the making thereof;

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<PAGE>

                  (c)      no injunction, writ, restraining order, or other
order of any nature prohibiting, directly or indirectly, the extending of such
credit shall have been issued and remain in force by any Governmental Authority
against any Borrower, Agent, any Lender, or any of their Affiliates;

                  (d)      except as otherwise set forth in Section 5.11(b), no
Material Adverse Change shall have occurred; and

                  (e)      Agent shall have a first priority perfected Lien in
the Collateral except for Permitted Liens.

         3.4      TERM. This Agreement shall become effective upon the execution
and delivery hereof by Borrowers, Agent and the Lenders and, subject to Section
3.5, shall continue in full force and effect for a term ending on the date (the
"Maturity Date") that is earliest of (a) February 27, 2009, or (b) the date of
termination of this Agreement by Agent or the Required Lenders upon the
occurrence and during the continuation of an Event of Default.

         3.5      EFFECT OF TERMINATION. On the date of termination of this
Agreement, all Obligations (including contingent reimbursement obligations of
Borrowers with respect to any outstanding Letters of Credit but excluding all
Bank Product Obligations unless so requested by the Bank Product Provider) shall
immediately become due and payable without notice or demand (including (a)
either (i) providing cash collateral to be held by Agent for the benefit of
those Lenders with a Revolver Commitment in an amount equal to 105% of the then
extant Letter of Credit Usage, or (ii) causing the original Letters of Credit to
be returned to the Issuing Lender, and (b) if the Bank Product Provider so
requests, providing cash collateral (in an amount determined by the applicable
Bank Product Provider to satisfy the reasonably estimated credit exposure) to be
held by Agent for the benefit of the Bank Product Providers with respect to the
then extant Bank Product Obligations). No termination of this Agreement,
however, shall relieve or discharge Borrowers of their duties, Obligations, or
covenants hereunder and the Agent's Liens in the Collateral shall remain in
effect until all Obligations have been fully and finally discharged and the
Lender Group's obligations to provide additional credit hereunder have been
terminated. When this Agreement has been terminated and all of the Obligations
have been fully and finally discharged and the Lender Group's obligations to
provide additional credit under the Loan Documents have been terminated
irrevocably, Agent will, at Borrowers' sole expense, execute and deliver any
Uniform Commercial Code termination statements, lien releases, mortgage
releases, re-assignments of trademarks, Vehicle registration releases,
discharges of security interests, and other similar discharge or release
documents (and, if applicable, in recordable form) as are reasonably necessary
to release, as of record, the Agent's Liens and all notices of security
interests and liens previously filed by Agent with respect to the Obligations.

         3.6      EARLY TERMINATION BY BORROWERS. Borrowers have the option, at
any time upon 30 days' prior written notice by Administrative Borrower to Agent,
to terminate this Agreement by paying to Agent, for the benefit of the Lender
Group and the Bank Product Providers, in cash on the applicable termination
date, the Obligations (including (a) either (i) providing cash collateral to be
held by Agent for the benefit of those Lenders with a Revolver Commitment in an
amount equal to 105% of the then extant Letter of Credit Usage, or (ii) causing
the original Letters of Credit to be returned to the Issuing Lender, and (b)
providing cash collateral (in an

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<PAGE>

amount determined by the applicable Bank Product Provider as sufficient to
satisfy the reasonably estimated credit exposure) to be held by Agent for the
benefit of the Bank Product Providers with respect to the then extant Bank
Product Obligations), in full, together with the Applicable Prepayment Premium,
to be allocated among the Lenders in accordance with their Pro Rata Shares. If
Administrative Borrower has sent a notice of termination pursuant to the
provisions of this Section, then the Commitments shall terminate and Borrowers
shall be obligated to repay the Obligations (including (a) either (i) providing
cash collateral to be held by Agent for the benefit of those Lenders with a
Revolver Commitment in an amount equal to 105% of the then extant Letter of
Credit Usage, or (ii) causing the original Letters of Credit to be returned to
the Issuing Lender, and (b) providing cash collateral to be held by Agent for
the benefit of the Bank Product Providers with respect to the then extant Bank
Product Obligations), in full, together with the Applicable Prepayment Premium,
on the date set forth as the date of termination of this Agreement in such
notice. In the event of the termination of this Agreement and repayment of the
Obligations at any time prior to the Maturity Date, for any other reason,
including (1) termination upon the election of the Required Lenders to terminate
after the occurrence of an Event of Default, (2) foreclosure and sale of
Collateral, (3) sale of the Collateral in any Insolvency Proceeding, or (4)
restructure, reorganization or compromise of the Obligations by the confirmation
of a plan of reorganization, or any other plan of compromise, restructure, or
arrangement in any Insolvency Proceeding, then, in view of the impracticability
and extreme difficulty of ascertaining the actual amount of damages to the
Lender Group or profits lost by the Lender Group as a result of such early
termination, and by mutual agreement of the parties as to a reasonable
estimation and calculation of the lost profits or damages of the Lender Group,
Borrowers shall pay the Applicable Prepayment Premium to Agent to be allocated
among the Lenders in accordance with their Pro Rata Shares, measured as of the
date of such termination.

4.       CREATION OF SECURITY INTEREST.

         4.1      GRANT OF SECURITY INTEREST. Each Borrower hereby grants to
Agent, for the benefit of the Lender Group and the Bank Product Providers, a
continuing first priority perfected security interest in all of its right,
title, and interest in all currently existing and hereafter acquired or arising
Personal Property Collateral in order to secure prompt repayment of any and all
of the Obligations in accordance with the terms and conditions of the Loan
Documents and in order to secure prompt performance by Borrowers of each of
their covenants and duties under the Loan Documents. The Agent's Liens in and to
the Personal Property Collateral shall attach to all Personal Property
Collateral without further act on the part of Agent or Borrowers. Anything
contained in this Agreement or any other Loan Document to the contrary
notwithstanding, except for Permitted Dispositions, Borrowers have no authority,
express or implied, to dispose of any item or portion of the Collateral.

         4.2      NEGOTIABLE COLLATERAL AND CHATTEL PAPER. Each Borrower
covenants and agrees with Agent that from and after the Closing Date and until
the date of termination of this Agreement in accordance with Section 3.5:

                  (a)      In the event that any Collateral, including proceeds,
is evidenced by or consists of Negotiable Collateral of any Borrower, and if and
to the extent that perfection of priority of Agent's security interest with
respect to such Collateral is dependent on or enhanced

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<PAGE>

by possession, the applicable Borrower, immediately upon the request of Agent,
shall endorse and deliver physical possession of such Negotiable Collateral to
Agent;

                  (b)      Upon request by Agent, each Borrower shall take all
steps reasonably necessary to grant Agent control of all electronic Chattel
Paper of such Borrower in accordance with the Code and all "transferable
records" as defined in each of the Uniform Electronic Transactions Act and the
Electronic Signatures in Global and National Commerce Act; and

                  (c)      In the event any Borrower, with Agent's consent,
retains possession of any Chattel Paper or instruments otherwise required to be
endorsed and delivered to Agent pursuant to Section 4.2(a), all of such Chattel
Paper and instruments shall be marked with the following legend: "This writing
and the obligations evidenced or secured thereby are subject to the security
interest of Wells Fargo Foothill, Inc., as Agent."

         4.3      COLLECTION OF ACCOUNTS, GENERAL INTANGIBLES, AND NEGOTIABLE
COLLATERAL. At any time after the occurrence and during the continuation of an
Event of Default, Agent or Agent's designee may (a) notify Account Debtors of
Borrowers that Borrowers' Accounts, Chattel Paper, or General Intangibles (other
than the Excluded Assets) have been assigned to Agent or that Agent has a
security interest therein, or (b) collect Borrowers' Accounts, Chattel Paper, or
General Intangibles (other than the Excluded Assets) directly and charge the
collection costs and expenses to the Loan Account. Each Borrower agrees that it
will hold in trust for the Lender Group, as the Lender Group's trustee, any
Collections that it receives and immediately will deliver said Collections to
Agent or a Cash Management Bank in their original form as received by the
applicable Borrower.

         4.4      DELIVERY OF ADDITIONAL DOCUMENTATION REQUIRED. Each Borrower
hereby authorizes Lender to file, transmit, or communicate, as applicable,
Uniform Commercial Code financing statements and amendments describing the
Collateral as "all personal property of debtor" or "all assets of debtor" or
words of similar effect in order to perfect Agent's Liens on the Collateral
without any Borrower's signature, to the extent permitted by Applicable Laws;
provided, however, Agent shall clearly identify Excluded Assets as excepted
items. Notwithstanding the foregoing, at any time upon the request of Agent,
Borrowers shall execute and deliver to Agent any and all financing statements,
original financing statements in lieu of continuation statements, fixture
filings, security agreements, pledges, assignments, endorsements of certificates
of title, supplements, and all other documents (the "Additional Documents") upon
which a Borrower's signature may be required that Agent may request in its
Permitted Discretion, in form and substance reasonably satisfactory to Agent, to
perfect and continue perfection of or better perfect the Agent's Liens in the
Collateral (whether now owned or hereafter arising or acquired), to create and
perfect Liens in favor of Agent in any Real Property acquired after the Closing
Date, and in order to fully consummate all of the transactions contemplated
hereby and under the other Loan Documents. To the maximum extent permitted by
Applicable Laws, each Borrower authorizes Agent to execute any such Additional
Documents in the applicable Borrower's name and authorize Agent to file such
executed Additional Documents in any appropriate filing office, and Agent shall
provide Administrative Borrower with copies of any such filings; provided,
however, that the failure by Agent to so provide such filings shall not affect
the authorizations herein. Each Borrower also hereby ratifies its authorization
for Agent to have filed in any jurisdiction any Uniform Commercial Code

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<PAGE>

financing statements or amendments thereto if filed prior to the Closing Date.
No Borrower shall terminate, amend or file a correction statement with respect
to any Uniform Commercial Code financing statement filed pursuant to this
Section 4.4 without Agent's prior written consent. In addition, on a quarterly
basis as Agent shall require, Borrowers shall (a) cause all patents, copyrights,
and trademarks acquired or generated by Borrowers that are not already the
subject of a registration with the appropriate filing office (or an application
therefor diligently prosecuted) to be registered with such appropriate filing
office in a manner sufficient to impart constructive notice of Borrowers'
ownership thereof, and (b) cause to be prepared, executed, and delivered to
Agent supplemental schedules to the applicable Loan Documents to identify such
patents, copyrights, and trademarks as being subject to the security interests
created thereunder. Administrative Borrower shall provide Agent with notice that
any Borrower or any Guarantor has made a Permitted Investment of the type
described in clause (e), (g) or (l) of the definition of "Permitted Investment"
promptly, but in any event within 5 Business Days, following the consummation
thereof and, upon the request of Agent, the relevant Loan Party shall execute
and deliver (or cause to be executed and delivered to Agent) any and all
Additional Documents requested by Agent to perfect the Agent's Liens in such
Permitted Investment.

         4.5      POWER OF ATTORNEY. Each Borrower hereby irrevocably makes,
constitutes, and appoints Agent (and any of Agent's officers, employees, or
agents designated by Agent) as such Borrower's true and lawful attorney, with
power to (a) if such Borrower refuses to execute and deliver, or fails timely to
execute and deliver any of the documents described in Section 4.4, sign the name
of such Borrower on any of the documents described in Section 4.4, (b) at any
time that an Event of Default has occurred and is continuing, sign such
Borrower's name on any invoice or bill of lading relating to the Collateral,
drafts against Account Debtors of such Borrower, or notices to such Account
Debtors, (c) send requests for verification of such Borrower's Accounts, (d)
endorse such Borrower's name on any Collection item that may come into the
Lender Group's possession, (e) at any time that an Event of Default has occurred
and is continuing, make, settle, and adjust all claims under such Borrower's
policies of insurance and make all determinations and decisions with respect to
such policies of insurance, and (f) at any time that an Event of Default has
occurred and is continuing, settle and adjust disputes and claims respecting
such Borrower's Accounts, Chattel Paper, or General Intangibles other than the
Excluded Assets directly with Account Debtors of such Borrower, for amounts and
upon terms that Agent determines to be reasonable, and Agent may cause to be
executed and delivered any documents and releases that Agent determines to be
necessary. The appointment of Agent as each Borrower's attorney, and each and
every one of its rights and powers, being coupled with an interest, is
irrevocable until all of the Obligations have been fully and finally repaid and
performed and the Lender Group's obligations to extend credit hereunder are
terminated.

         4.6      RIGHT TO INSPECT.

(a) Agent (through its officers, employees, or agents) shall have the right to,
and at the request of the Required Lenders shall, from time to time hereafter,
inspect Borrowers' Books and records and to check, test, and appraise the
Collateral in order to verify Borrowers' financial condition or the amount,
quality, value, condition of, or any other matter relating to, the Collateral;
provided, however, that so long as an Event of Default does not exist, any such
inspection shall occur only during normal business hours. Absent the occurrence
and continuance of an Event of Default during such calendar year, Agent may, and
at the request of

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<PAGE>

the Required Lenders shall, require appraisals in each calendar year of only
those parcels of Real Property constituting the lesser of (i) up to 20% of the
Fair Market Valuation of Real Property Collateral (as determined by Agent in its
Permitted Discretion) or (ii) up to 100 parcels of Real Property Collateral per
calendar year; provided, however, that if Agent determines, in its Permitted
Discretion, that there has been a significant decrease in the Fair Market
Valuation of Real Property Collateral, Agent may, and at the request of the
Required Lenders shall, require appraisals of all parcels of Real Property
Collateral or such lesser amount as may be determined by Agent in its Permitted
Discretion per calendar year.

         (b)      Borrowers acknowledge and agree that, at the expense of
Borrowers, Agent shall have the right to conduct, on a quarterly basis or more
frequently if an Event of Default exists, an independent inspection of 5% of the
Certificates of Title then on hand with any appropriate Governmental Authority
in order to verify the accuracy and completeness of any information contained on
such Certificates of Title and compliance with this Agreement; provided,
however, that if Agent determines, in its Permitted Discretion, that there are
significant errors or discrepancies in the Certificates of Title or
non-compliance with this Agreement, Agent and the Lenders shall, at the expense
of Borrowers, have the right to conduct an independent inspection of all of
Certificates of Title or such lesser amount as may be determined by Agent in its
Permitted Discretion. Borrowers shall, or shall cause Guarantors to, deliver to
Agent (or its designees) any power of attorney or other document that may be
requested by Agent or required by such Governmental Authority in connection
therewith. Borrowers acknowledge that such inspection may be conducted by
employees of Agent or any third party retained by Agent for such purposes.

         4.7      CONTROL AGREEMENTS. Each Borrower agrees that it will not
transfer assets out of any Securities Accounts other than as permitted under
Section 7.19 and, if to another securities intermediary, unless each of the
applicable Borrower, Agent, and the substitute securities intermediary have
entered into a Control Agreement. No arrangement contemplated hereby or by any
Control Agreement in respect of any Securities Accounts or other Investment
Property of Borrowers shall be modified by Borrowers without the prior written
consent of Agent. Upon the occurrence and during the continuance of a Default or
Event of Default, Agent may notify any securities intermediary to liquidate the
applicable Securities Account or any related Investment Property maintained or
held thereby and remit the proceeds thereof to the Agent's Account.

         4.8      COMMERCIAL TORT CLAIMS. Borrowers shall promptly notify Agent
in writing in the event any Borrower shall incur or otherwise obtain a
Commercial Tort Claim in excess of $100,000 after the Closing Date against any
third party and, upon the request of Agent, shall promptly amend Schedule C-1,
authorize the filing of additional Uniform Commercial Code financing statements
or amendments to existing Uniform Commercial Code financing statements, and do
such other acts or things deemed necessary or desirable by Agent to grant Agent
a first priority, perfected security interest in any such Commercial Tort Claim,
including, without limitation executing an assignment of such Commercial Tort
Claim.

         4.9      GRANTS, RIGHTS AND REMEDIES. The Liens and security interests
granted by each Borrower to Agent (for the benefit of Lender Group) by and
pursuant to Section 4.1 hereof may be independently granted by the Loan
Documents hereafter entered into. This Agreement and

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<PAGE>

such other Loan Documents supplement each other, and the grants, priorities,
rights and remedies of Agent hereunder and thereunder are cumulative.

         4.10     SURVIVAL. The Liens and security interests granted to Agent
(for the benefit of Lender Group), the priority of such Liens and security
interests, and the administrative priorities and other rights and remedies
granted to Lender Group pursuant to this Agreement and the other Loan Documents
(specifically including but not limited to the existence, perfection and
priority of the Liens and security interest provided herein and therein) shall
not be modified, altered or impaired in any manner by any other financing or
extension of credit or incurrence of debt by any Borrower or by any other act or
omission whatsoever.

5.       REPRESENTATIONS AND WARRANTIES.

                  In order to induce the Lender Group to enter into this
Agreement, each Borrower makes the following representations and warranties to
the Lender Group, which representations and warranties shall be true, correct,
and complete, in all material respects, as of the date hereof, and shall be
true, correct, and complete, in all material respects, as of the Closing Date,
and at and as of the date of the making of each Advance (or other extension of
credit) made thereafter, as though made on and as of the date of such Advance
(or other extension of credit) (except to the extent that such representations
and warranties relate solely to an earlier date) and such representations and
warranties shall survive the execution and delivery of this Agreement:

         5.1      NO ENCUMBRANCES. Each Borrower and each Guarantor has good and
indefeasible title to its assets, free and clear of Liens except for Permitted
Liens. Each Borrower and each Guarantor is the vested fee owner of each parcel
of Real Property Collateral set forth next to its name on Schedule R-1 hereto,
and such ownership is free and clear of all title defects and Liens, except
Permitted Liens of the type described in clauses (b), (f), (j), (k), (l) and (n)
of the definition thereof.

         5.2      OWNERSHIP OF CERTAIN ASSETS. Borrowers and U-Haul (Canada) are
the only Loan Parties that own any parcel of Real Property Collateral or any
Vehicle included in the Collateral.

         5.3      [INTENTIONALLY OMITTED.]

         5.4      EQUIPMENT. All of the Equipment is used or held for use in
Borrowers' or Guarantors' businesses and is fit for such purposes.

         5.5      LOCATION OF EQUIPMENT. The Equipment of Borrowers and
Guarantors is stored only at the locations permitted by Section 6.9 hereof.

         5.6      EQUIPMENT RECORDS. Each Borrower and each Guarantor keeps
correct and accurate records itemizing and describing the type, quality, and
quantity of its Equipment and the book value thereof.

         5.7      LOCATION OF CHIEF EXECUTIVE OFFICE; FEIN; ORGANIZATIONAL ID
NUMBER. The chief executive office of each Borrower and each Guarantor is
located at the address indicated in Schedule 5.7 and each Borrower's and each
Guarantor's FEIN and Organizational ID Number

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<PAGE>

or, in the case of the Canadian Subsidiaries, the numbers assigned by Canada
Customs and Revenue Agency (Canada) are identified in Schedule 5.7. As of the
Closing Date, each Borrower's and each Guarantor's exact legal name is as set
forth on the signature pages to the Agreement, and in the 5 years prior to the
Closing Date no Borrower and no Guarantor has been known by any other name, or
had a business at any address other than those specified on Schedule 5.7.

         5.8      DUE ORGANIZATION AND QUALIFICATION; SUBSIDIARIES; AFFILIATES.

                  (a)      Each Borrower and each Guarantor is duly organized
and existing and in good standing under the laws of the jurisdiction of its
organization and qualified to do business in any state, province or territory
where the failure to be so qualified reasonably could be expected to have a
Material Adverse Change.

                  (b)      Set forth on Schedule 5.8(b), is a complete and
accurate description of the authorized capital Stock of each Borrower and each
Guarantor, by class, and, as of the Closing Date, a description of the number of
shares of each such class that are issued and outstanding. Other than as
described on Schedule 5.8(b), there are no subscriptions, options, warrants, or
calls relating to any shares of each Borrower's and each Guarantor's capital
Stock, including any right of conversion or exchange under any outstanding
security or other instrument. Neither any Borrower nor any Guarantor is subject
to any obligation (contingent or otherwise) to repurchase or otherwise acquire
or retire any shares of its capital Stock or any security convertible into or
exchangeable for any of its capital Stock.

                  (c)      Set forth on Schedule 5.8(c), is a complete and
accurate list of each Borrower's and each Guarantor's direct and indirect
Subsidiaries, showing: (i) the jurisdiction of their organization; (ii) the
number of shares of each class of common and preferred Stock authorized for each
of such Subsidiaries; and (iii) the number and the percentage of the outstanding
shares of each such class owned directly or indirectly by the applicable
Borrower or Guarantor. All of the outstanding capital Stock of each such
Subsidiary has been validly issued and is fully paid and non-assessable.

                  (d)      Except as set forth on Schedule 5.8(d), there are no
subscriptions, options, warrants, or calls relating to any shares of any
Borrower's, any Guarantor's, or any of their respective Subsidiaries' capital
Stock, including any right of conversion or exchange under any outstanding
security or other instrument. No Borrower, Guarantor or any of their respective
Subsidiaries is subject to any obligation (contingent or otherwise) to
repurchase or otherwise acquire or retire any shares of any Borrower's or any
Guarantor's Subsidiaries' capital Stock or any security convertible into or
exchangeable for any such capital Stock.

                  (e)      Set forth on Schedule 5.8(e) is a complete and
accurate list of each Borrower's and each Guarantor's Affiliates showing the
relation (whether through direct ownership, common ownership or otherwise)
between such Borrower and such Affiliates.

                  (f)      The Dormant Subsidiaries (i) are inactive and do not
engage in any business activities, (ii) do not have assets with an aggregate
fair market value in excess of $100,000, and (iii) do not have any annual
operating expenditures or other liabilities.

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<PAGE>

                  (g)      INW is the subject of an Insolvency Proceeding as of
the Closing Date.

         5.9      DUE AUTHORIZATION; NO CONFLICT.

                  (a)      As to each Borrower, the execution, delivery, and
performance by such Borrower of this Agreement and the Loan Documents to which
it is a party have been duly authorized by all necessary action on the part of
such Borrower.

                  (b)      As to each Borrower, the execution, delivery, and
performance by such Borrower of this Agreement and the Loan Documents to which
it is a party do not and will not (i) violate any provision of federal, state,
provincial or local law or regulation applicable to any Borrower, the Governing
Documents of any Borrower, or any order, judgment, or decree of any court or
other Governmental Authority binding on any Borrower, (ii) conflict with, result
in a material breach of, or constitute (with due notice or lapse of time or
both) a default under any material contractual obligation of any Borrower,
including without limitation the Material Contracts, (iii) result in or require
the creation or imposition of any Lien of any nature whatsoever upon any
properties or assets of any Borrower, other than Permitted Liens, or (iv)
require any approval of any Borrower's interest holders or any approval or
consent of any Person under any material contractual obligation of any Borrower,
including without limitation the Material Contracts, except for any such
approvals that have been obtained or are expressly not required in accordance
with the terms of the Reorganization Plan.

                  (c)      Other than the filing of the Uniform Commercial Code
financing statements, fixture filings and Mortgages and the entry of the
Confirmation Order, the execution, delivery, and performance by each Borrower of
this Agreement and the Loan Documents to which such Borrower is a party do not
and will not require any registration with, consent, or approval of, or notice
to, or other action with or by, any Governmental Authority or other Person.

                  (d)      As to each Borrower, this Agreement and the other
Loan Documents to which such Borrower is a party, and all other documents
contemplated hereby and thereby, when executed and delivered by such Borrower
will be the legally valid and binding obligations of such Borrower, enforceable
against such Borrower in accordance with their respective terms, except as
enforcement may be limited by equitable principles or by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors'
rights generally.

                  (e)      The Agent's Liens are validly created, perfected, and
first priority Liens, subject only to Permitted Liens.

                  (f)      The execution, delivery, and performance by each
Guarantor of the Loan Documents to which it is a party have been duly authorized
by all necessary action on the part of such Guarantor.

                  (g)      The execution, delivery, and performance by each
Guarantor of the Loan Documents to which it is a party do not and will not (i)
violate any provision of federal, state, or local law or regulation applicable
to such Guarantor, the Governing Documents of such Guarantor, or any order,
judgment, or decree of any court or other Governmental Authority binding on such
Guarantor, (ii) conflict with, result in a material breach of, or constitute
(with due notice or lapse of time or both) a default under any material
contractual obligation of such

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<PAGE>

Guarantor, (iii) result in or require the creation or imposition of any Lien of
any nature whatsoever upon any properties or assets of such Guarantor, other
than Permitted Liens, or (iv) require any approval of such Guarantor's interest
holders or any approval or consent of any Person under any material contractual
obligation of such Guarantor, including without limitation the Material
Contracts, except for approvals that have been obtained.

                  (h)      Other than the filing of Uniform Commercial Code
financing statements, fixture filings and Mortgages, the execution, delivery,
and performance by each Guarantor of the Loan Documents to which such Guarantor
is a party do not and will not require any registration with, consent, or
approval of, or notice to, or other action with or by, any Governmental
Authority or other Person.

                  (i)      The Loan Documents to which any Guarantor is a party,
and all other documents contemplated hereby and thereby, when executed and
delivered by such Guarantor will be legally valid and binding obligations of
such Guarantor, enforceable against Guarantor in accordance with their
respective terms, except as enforcement may be limited by equitable principles
or by bankruptcy, insolvency, reorganization, moratorium, or similar laws
relating to or limiting creditors' rights generally.

         5.10     LITIGATION. Other than those matters disclosed on Schedule
5.10, there are no actions, suits, arbitrations, administrative hearings or
other proceedings pending or, to the knowledge of Borrowers, threatened against
Borrowers, Guarantors or any of their Subsidiaries (excluding the Insurance
Subsidiaries), as applicable, except for (a) matters that are fully covered by
insurance (subject to customary deductibles), (b) routine litigation arising in
the ordinary course of business that is not material and (c) matters arising
after the Closing Date that, if decided adversely to Borrowers, Guarantors, or
any of their Subsidiaries, as applicable, reasonably could not be expected to
result in a Material Adverse Change.

         5.11     FINANCIAL STATEMENTS; NO MATERIAL ADVERSE CHANGE. (a) All
financial statements relating to Borrowers or Guarantors that have been
delivered by Borrowers or Guarantors to the Lender Group (i) have been prepared
in accordance with GAAP (except, in the case of unaudited financial statements,
for the lack of footnotes and being subject to year-end audit adjustments), (ii)
are true and correct in all material respects, and accurately present Borrowers'
(or Guarantors', as applicable) financial condition as of the date thereof,
(iii) do not and will not contain any untrue statement of material fact or omit
to state any material fact necessary in order to make such statements contained
therein not misleading in light of the circumstances under which such statements
were made. All Projections, if any, that have been made or will be prepared by
or on behalf of Borrowers or any of their respective representatives and made
available to Agent, and the Lenders have been or will be prepared in good faith
based upon assumptions that are reasonable at the time made and at the time the
related Projections are made available to Agent and the Lenders.

                  (b)      Other than (i) the filing of the Chapter 11 Case,
(ii) the withdrawal by PriceWaterhouseCoopers of its audit letter with respect
to Borrowers' financial statements for the fiscal year ended as of March 31,
2002 and (iii) such other matters as have been set forth in writing by Borrowers
to Agent on or before October 1, 2003, there has not been a Material Adverse
Change with respect to Borrowers (or Guarantors, as applicable) since March 31,
2003.

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         5.12     FRAUDULENT TRANSFER.

                  (a)      Each Borrower and each Guarantor is Solvent.

                  (b)      No transfer of property is being made by any Borrower
or any Guarantor and no obligation is being incurred by any Borrower or any
Guarantor in connection with the transactions contemplated by this Agreement or
the other Loan Documents with the intent to hinder, delay, or defraud either
present or future creditors of Borrowers or Guarantors.

         5.13     EMPLOYEE BENEFITS. No Borrower, Guarantor, Subsidiary of a
Borrower or a Guarantor, or ERISA Affiliate of a Borrower or a Guarantor
maintains or contributes to any Benefit Plan, other than those listed on
Schedule 5.13. Each Borrower, Guarantor, Subsidiary of a Borrower or a Guarantor
and ERISA Affiliate of a Borrower or a Guarantor has satisfied the minimum
funding standards of ERISA and the IRC with respect to each Benefit Plan to
which it is obligated to contribute. No ERISA Event has occurred nor has any
other event occurred that may result in an ERISA Event that reasonably could be
expected to result in a Material Adverse Change. No Borrower, Guarantor,
Subsidiary of a Borrower or a Guarantor, ERISA Affiliate of a Borrower or
Guarantor, or, to Borrowers' knowledge, fiduciary of any Benefit Plan is subject
to any direct or indirect liability with respect to any Benefit Plan under any
Applicable Law, treaty, rule, regulation, or agreement (other than liability for
the minimum required funding of such Benefit Plan in accordance with Sections
302 of ERISA and 412 of the IRC; under circumstances that do not involve any
current or past "accumulated funding deficiency" as defined in Sections 302 of
ERISA and 412 of the IRC). No Borrower, Guarantor, Subsidiary of a Borrower or a
Guarantor, or ERISA Affiliate of a Borrower or a Guarantor is required to
provide security to any Benefit Plan under Section 401(a)(29) of the IRC.

         5.14     ENVIRONMENTAL CONDITION. Except as set forth on Schedule 5.14,
(a) to Borrowers' knowledge, no properties or assets of Borrowers or Guarantors
have ever been used by Borrowers, Guarantors, or by previous owners or operators
in the disposal of, or to produce, store, handle, treat, release, or transport,
any Hazardous Materials, where such production, storage, handling, treatment,
release or transport was in violation, in any material respect, of applicable
Environmental Law, (b) to Borrowers' knowledge, no properties or assets of
Borrowers or Guarantors have ever been designated or identified in any manner
pursuant to any environmental protection statute as a Hazardous Materials
disposal site, (c) no Borrower or Guarantor has received notice that a Lien
arising under any Environmental Law has attached to any revenues or to any Real
Property owned or operated by Borrowers, and (d) no Borrower or Guarantor has
received a summons, citation, notice, or directive from the Environmental
Protection Agency or any other federal or state governmental agency concerning
any action or omission by any Borrower or any Guarantor resulting in the
releasing or disposing of Hazardous Materials into the environment.

         5.15     BROKERAGE FEES. Borrowers and Guarantors have not utilized the
services of any broker or finder in connection with Borrowers' obtaining
financing from the Lender Group under this Agreement and no brokerage commission
or finders fee is payable by Borrowers or Guarantors in connection herewith.

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         5.16     INTELLECTUAL PROPERTY. Each Borrower or each Guarantor owns,
or holds licenses in, all trademarks, trade names, copyrights, patents, patent
rights, and licenses that are necessary to the conduct of its business as
currently conducted. Attached hereto as Schedule 5.16 is a true, correct, and
complete listing of all material patents, patent applications, trademarks,
trademark applications, copyrights, and copyright registrations as to which each
Borrower or each Guarantor is the owner or is an exclusive licensee.

         5.17     LEASES. Borrowers and Guarantors enjoy peaceful and
undisturbed possession under all leases material to the business of Borrowers
and Guarantors and to which Borrowers or Guarantors are a party or under which
Borrowers or Guarantors are operating. All of such leases are valid and
subsisting and no material default by Borrowers or Guarantors exists under any
of them.

         5.18     DDAS. Set forth on Schedule 5.18 are all Borrowers' and
Guarantors' DDAs, including, with respect to each depository (i) the name and
address of such depository, and (ii) the account numbers of the accounts
maintained with such depository.

         5.19     COMPLETE DISCLOSURE. All factual information (taken as a
whole) furnished by or on behalf of Borrowers or Guarantors in writing to Agent
or any Lender (including all information contained in the Schedules hereto or in
the other Loan Documents) for purposes of or in connection with this Agreement,
the other Loan Documents, or any transaction contemplated herein or therein is,
and all other such factual information (taken as a whole) hereafter furnished by
or on behalf of Borrowers or Guarantors in writing to the Agent or any Lender
will be, true and accurate, in all material respects, on the date as of which
such information is dated or certified and not incomplete by omitting to state
any fact necessary to make such information (taken as a whole) not misleading in
any material respect at such time in light of the circumstances under which such
information was provided. On the Closing Date, the Projections represent, and as
of the date on which any other Projections are delivered to Agent, such
additional Projections represent Borrowers' good faith best estimate of its
future performance for the periods covered thereby.

         5.20     INDEBTEDNESS, ETC.

                  (a)      Set forth on Schedule 5.20(a) is a true and complete
list of all Indebtedness of each Borrower or Guarantors outstanding immediately
prior to the Closing Date that is to remain outstanding after the Closing Date
and such Schedule accurately reflects the aggregate principal amount of such
Indebtedness.

                  (b)      Set forth on Schedule 5.20(b) is a true and complete
summary of all TRAC Lease Transactions in existence as of the Closing Date that
are to remain outstanding after the Closing Date.

                  (c)      No Loan Party is a party to or subject to any
agreement that prohibits or restricts the ability of any Loan Party to
refinance, amend, modify or prepay the Obligations or this Agreement, except for
(i) restrictions set forth in the Intercreditor Agreement and (ii) restrictions
in the Synthetic Leases as of the Closing Date and fully disclosed on Schedule
5.20(c) hereto.

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         5.21     CONFIRMATION ORDER. The Confirmation Order has been validly
entered by the Court and has not been stayed, reversed, vacated or otherwise
modified except with the consent of Agent and the Required Lenders.

         5.22     RESERVATION MANAGEMENT SYSTEM. The Reservation Management
System is owned by A&M Associates, Inc., a Nevada corporation, free and clear of
claims and encumbrances.

         5.23     TAXES AND REMITTANCES. Parent and its Subsidiaries have filed
all federal (including the federal government of Canada) and other tax returns
and reports required to be filed, and have paid all federal (including the
federal government of Canada) and other taxes, assessments, fees and other
governmental charges levied or imposed upon them or their properties, income or
assets otherwise due and payable, except to the extent (i) the payment of any of
the foregoing is subject to a long-term payment schedule under the
Reorganization Plan or (ii) is the subject of a Permitted Protest. Parent and
its Subsidiaries have remitted all contributions required pursuant to the Canada
Pension Plan Act (Canada), provincial pension plan contributions, workers
compensation assessments, and employment insurance premiums payable under
Applicable Laws by it (the "Statutory Lien Payments") and has remitted such
amounts to the proper Governmental Authorities with the time required under the
Applicable Laws.

         5.24     INVESTIGATIONS. There are no pending investigations, claims or
litigation by any Governmental Authority or other Person with respect to the
transactions contemplated by this Agreement and the other Loan Documents.

         5.25     VEHICLES.

                  (a)      Prior to the Closing Date, Borrowers have, or have
caused Guarantors to, (i) register, or cause to be registered, with the State of
Arizona each Vehicle (excluding any trailer) owned by any Borrower or any
Guarantor (other than U-Haul Co. of Alaska or U-Haul of Hawaii, Inc.) as of the
Closing Date and (ii) obtain a new certificate of title (collectively, the
"Certificates of Title" and, individually, a "Certificate of Title") for each
such Vehicle registered pursuant to clause (i) naming (1) (A) U-Haul (Canada) as
the registered owner of such Vehicles operated primarily in Canada, or (B)
U-Haul Co. of Arizona, an Arizona corporation, as the registered owner of all
other such Vehicles, (2) on new Certificates of Title obtained prior to May 21,
2003, "FOOTHILL CAPITAL CORP." as the first priority lienholder and (3) on new
Certificates of Title obtained on or after May 21, 2003, "WELLSFARGO FOOTHILL,
INC., AS AGENT" or, if space does or did not permit, "WELLSFARGO FOOTHILL
AGENT", as the first priority lienholder thereon.

                  (b)      Prior to the Closing Date, Borrowers have, or have
caused U-Haul Co. of Alaska to, (i) register, or cause to be registered, with
the State of Alaska each Vehicle (excluding any trailer) owned by U-Haul Co. of
Alaska on or before the Closing Date, (ii) obtain a new Certificate of Title for
each such Vehicle registered pursuant to clause (i) naming (1) U-Haul Co. of
Alaska, an Alaskan corporation, as the registered owner and (2) "WELLSFARGO
FOOTHILL, INC., AS AGENT" or, if space does or did not permit, "WELLSFARGO
FOOTHILL AGENT", as the first priority lienholder thereon.

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                  (c)      Prior to the Closing Date, Borrowers have, or have
caused U-Haul of Hawaii, Inc. to, (i) register, or cause to be registered, with
the State of Hawaii each Vehicle (excluding any trailer) owned by U-Haul of
Hawaii, Inc. on or before the Closing Date, (ii) obtain a new Certificate of
Title for each such Vehicle registered pursuant to clause (i) naming (1) U-Haul
of Hawaii, Inc., a Hawaiian corporation, as the registered owner and (2)
"WELLSFARGO FOOTHILL, INC., AS AGENT" or, if space does or did not permit,
"WELLSFARGO FOOTHILL AGENT", as the first priority lienholder thereon.

         5.26     ANTI-TERRORISM LAWS.

                  (a)      Anti-Terrorism Laws. None of Loan Parties nor any
Affiliate of any Loan Party is in violation of any Anti-Terrorism Law or
knowingly engages in or conspires to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any
of the prohibitions set forth in any Anti-Terrorism Law.

                  (b)      Executive Order No. 13224. None of Borrowers nor any
Affiliate of any Borrower is any of the following (each a "Blocked Person"):

                           (i)      a Person that is listed in the annex to, or
                  is otherwise subject to the provisions of, Executive Order No.
                  13224;

                           (ii)     a Person owned or controlled by, or acting
                  for or on behalf of, any Person that is listed in the annex
                  to, or is otherwise subject to the provisions of, Executive
                  Order No. 13224;

                           (iii)    a Person or entity with which any bank or
                  other financial institution is prohibited from dealing or
                  otherwise engaging in any transaction by any Anti-Terrorism
                  Law;

                           (iv)     a Person or entity that commits, threatens
                  or conspires to commit or supports "terrorism" as defined in
                  Executive Order No. 13224;

                           (v)      a Person or entity that is named as a
                  "specially designated national" on the most current list
                  published by OFAC at its official website or any replacement
                  website or other replacement official publication of such
                  list; or

                           (vi)     a Person or entity who is affiliated with a
                  Person or entity listed above.

Neither any Borrower nor any Affiliate of any Borrower (i) conducts any business
or engages in making or receiving any contribution of funds, goods or services
to or for the benefit of any Blocked Person or (ii) deals in, or otherwise
engages in any transaction relating to, any property or interests in property
blocked pursuant to Executive Order No. 13224.

                  (c)      OFAC. None of Borrowers nor any Affiliate of any
Borrower is in violation of any rules or regulations promulgated by OFAC or of
any economic or trade sanctions or engages in administered and enforced by OFAC
or conspires to engage in any

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transaction that evades or avoids, or has the purpose of evading or avoiding, or
attempts to violate, any of the prohibitions set forth in any rules or
regulations promulgated by OFAC.

6.       AFFIRMATIVE COVENANTS.

                  Each Borrower covenants and agrees that, until termination of
all of the Commitments and payment in full of the Obligations, Borrowers shall
and shall cause each of their respective Subsidiaries to do all of the
following:

         6.1      ACCOUNTING SYSTEM. Maintain a system of accounting that
enables such Loan Party to produce financial statements in accordance with GAAP
and maintain records pertaining to the Collateral that contain information as
from time to time reasonably may be requested by Agent.

         6.2      COLLATERAL REPORTING. Administrative Borrower shall provide
Agent the following information (and if required by Agent, with copies to each
Lender) relating to the Collateral:

                  (a)      On a monthly basis, in a form reasonably satisfactory
to Agent, (i) not later than the fifteenth (15th) day of each month, a summary
aging, by vendor, of each Loan Party's accounts payable, and (ii) not later than
the thirtieth (30th) day of each month, (A) a summary of any book overdraft and
(B) a report setting forth the Qualified Cash of each Loan Party.

                  (b)      On a quarterly basis, not later than 15 days after
the end of each quarter, a report by gross book value and net book value of all
box-trucks, cargo vans and pickup trucks owned by Borrowers (and subject to
Agent's Lien) or Guarantors as of the last day of such quarter, together with a
reconciliation of any box-trucks, cargo vans and pickup trucks bought or sold
since the delivery of the prior report to Agent.

                  (c)      Upon the delivery of any updated Fair Market
Valuation and on each date monthly financial statements are delivered to Agent,
a new Borrowing Base Certificate together with an updated schedule of Real
Property Collateral showing a reconciliation of any Real Property Collateral
bought or sold since the delivery of the prior Borrowing Base Certificate to the
Agent.

                  (d)      On a quarterly basis, (i) a report of the name and
location of all U-Haul Dealers as of such date (the "Dealer List"), and (ii)
updated list of the Loan Parties' bank accounts, which schedule shall clearly
indicate any additions or deletions to such list from the list delivered to
Agent the preceding quarter.

         6.3      FINANCIAL STATEMENTS, REPORTS, CERTIFICATES. Deliver to Agent,
with copies to each Lender:

                  (a)      as soon as available, but in any event within 45 days
after the end of each month during each of Parent's fiscal years,

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                           (i)      a company prepared Consolidated balance
                  sheet, income statement, and statement of cash flow covering
                  Parent's and its Subsidiaries' operations during such month
                  and the fiscal year to date, together with a comparison of
                  such financial statements to (A) Parent's Projections
                  delivered prior to the Closing Date or pursuant to Section
                  6.3(c) and (B) the Consolidated balance sheet, income
                  statement, and statement of cash flow covering Parent's and
                  its Subsidiaries' operations for such corresponding period in
                  the immediately preceding fiscal year,

                           (ii)     a company prepared schedule detailing
                  Parent's Consolidated EBITDA as of the end of each month for
                  the 13-month period then ended,

                           (iii)    a certificate signed by a chief financial
                  officer or a principal accounting officer of Parent to the
                  effect that:

                                    (A)      the financial statements and other
                           financial information delivered hereunder have been
                           prepared in accordance with GAAP (except for the lack
                           of footnotes and being subject to year-end audit
                           adjustments) and fairly present in all material
                           respects the financial condition of Parent and its
                           Subsidiaries,

                                    (B)      the representations and warranties
                           of Borrowers contained in this Agreement and the
                           other Loan Documents are true and correct in all
                           material respects on and as of the date of such
                           certificate, as though made on and as of such date
                           (except to the extent that such representations and
                           warranties relate solely to an earlier date), and

                                    (C)      there does not exist any condition
                           or event that constitutes a Default or Event of
                           Default (or, to the extent of any non-compliance,
                           describing such non-compliance as to which he or she
                           may have knowledge and what action Borrowers have
                           taken, are taking, or propose to take with respect
                           thereto), and

                           (iv)     for each month that is the date on which a
                  financial covenant in Section 7.20 is to be tested, a
                  Compliance Certificate demonstrating, in reasonable detail,
                  compliance at the end of such period with the applicable
                  financial covenants contained in Section 7.20, together with a
                  reconciliation of the company prepared Consolidated balance
                  sheet, income statement, and statement of cash flow for Parent
                  and its Subsidiaries for the 3-month period then ended to the
                  audited financial statements contained in the 4 most recent
                  10-Q quarterly reports and the most recent Form 10-K annual
                  report filed by Parent and its Subsidiaries,

                  (b)      as soon as available, but in any event within 120
days after the end of each of Parent's fiscal years,

                           (i)      Consolidated financial statements of Parent
                  and its Subsidiaries for each such fiscal year, audited by
                  independent certified public accountants

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<PAGE>

                  reasonably acceptable to Agent and certified, without any
                  qualifications, by such accountants to have been prepared in
                  accordance with GAAP (such audited financial statements to
                  include a balance sheet, income statement, and statement of
                  cash flow and, if prepared, such accountants' letter to
                  management), and

                           (ii)     a certificate of such accountants addressed
                  to Agent and the Lenders stating that such accountants do not
                  have knowledge of the existence of any Default or Event of
                  Default under Section 7.20,

                  (c)      as soon as available, but in any event within 30 days
prior to the start of each of Parent's fiscal years, copies of Parent's
Projections, in form and substance (including as to scope and underlying
assumptions) reasonably satisfactory to the Lender Group, in its Permitted
Discretion, for the forthcoming 3 years, year by year, and for the forthcoming
fiscal year, month by month, certified by the chief financial officer of Parent
as being such officer's good faith best estimate of the financial performance of
Parent and its Subsidiaries on a Consolidated basis during the period covered
thereby,

                  (d)      if, when and to the extent filed by any Loan Party
with the SEC or any other Governmental Authority,

                           (i)      Form 10-Q quarterly reports, Form 10-K
                  annual reports, and Form 8-K current reports,

                           (ii)     any other filings made by any Loan Party
                  with the SEC,

                           (iii)    copies of Borrowers' federal income tax
                  returns, and any amendments thereto, filed with the IRS,

                           (iv)     copies of any other reports or documents
                  delivered by a Loan Party to Wells Fargo Bank, National
                  Association, as trustee, pursuant to Section 4.03 Term Loan B
                  Indenture, and

                           (v)      any other information that is provided by
                  Parent to its shareholders generally,

                  (e)      if and when filed by any Loan Party and as requested
by Agent, reasonably satisfactory evidence of payment of applicable excise and
property taxes in each jurisdictions in which (i) any Loan Party conducts
business, owns real property or is required to pay any such excise or real
property tax, (ii) where any Loan Party's failure to pay any such applicable
excise or property tax would result in a Lien on the properties or assets of any
Loan Party, or (iii) where any Loan Party's failure to pay any such applicable
excise tax reasonably could be expected to result in a Material Adverse Change,

                  (f)      promptly after the commencement thereof, notice of
all actions, suits or proceedings brought by or against any Loan Party before
any Governmental Authority that, if determined adversely to such Loan Party,
could reasonably be expected to result in a Material Adverse Change,

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                  (g)      as soon as a Borrower has knowledge of any event or
condition that constitutes a Default or an Event of Default, notice thereof and
a statement of the curative action that Borrowers propose to take with respect
thereto,

                  (h)      as soon as a Borrower has actual knowledge of any
event or condition that constitutes a default or an event of default under the
New AMERCO Note Documents, the Term Loan B Note Documents, or any Funded Debt
(including, without limitation, any TRAC Lease Transaction, the PMCC Like Kind
Exchange Lease or the PMCC Leveraged Lease) or any notice, call, default of
event of default under any Support Party Agreement, notice thereof and a
statement of the curative action that Borrowers or Guarantors, as applicable,
propose to take with respect thereto, and

                  (i)      upon the request of Agent or the Lender Group, any
other report reasonably requested relating to the financial condition of any
Loan Party.

                  In addition to the financial statements referred to above,
Borrowers agree to deliver financial statements prepared on both a consolidated
and consolidating basis (in accordance with GAAP) and a Consolidated basis (as
defined herein) and that, except for the Insurance Subsidiaries, no Borrower, or
any Subsidiary of a Borrower, will have a fiscal year different from that of
Parent. Borrowers agree to cooperate with Agent to allow Agent to consult with
their certified public accountants if Agent reasonably requests the right to do
so and that, in such connection, their independent certified public accountants
are authorized to communicate with Agent and to release to Agent whatever
financial information concerning Borrowers or their Subsidiaries that Agent
reasonably may request. Each Borrower waives the right to assert a confidential
relationship, if any, it may have with any accounting firm or service bureau in
connection with any information requested by Agent pursuant to or in accordance
with this Agreement, and agree that Agent may contact directly any such
accounting firm or service bureau in order to obtain such information; provided,
however, so long as no Event of Default has occurred and is continuing, Agent
shall give Borrowers a copy of any written request for information from Agent to
such accounting firm or bureau services and Borrowers shall have an opportunity
to attend any meeting between Agent and such accounting firm or bureau services
with respect to such information requests.

         6.4      GUARANTOR REPORTS. Cause each Guarantor to deliver its annual
financial statements at the time when Parent provides its audited financial
statements to Agent, but only to the extent such Guarantor's Financial
Statements are not consolidated with Parent's Financial Statements, and copies
of all federal income tax returns as soon as the same are available and in any
event no later than 30 days after the same are required to be filed by law.

         6.5      [INTENTIONALLY OMITTED.]

         6.6      MAINTENANCE OF PROPERTIES. Maintain and preserve all of its
properties which are necessary or useful in the proper conduct of their business
in good working order and condition, ordinary wear and tear excepted, and comply
at all times with the provisions of all leases to which it is a party as lessee,
so as to prevent any loss or forfeiture thereof or thereunder.

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<PAGE>

         6.7      TAXES. Cause all assessments and taxes, whether real,
personal, or otherwise, due or payable by, or imposed, levied, or assessed
against any Borrower, any Subsidiary of a Borrower or any of their assets to be
paid in full, not less than 30 days before the earlier of (a) delinquency or (b)
the imposition of any additional amounts, fines or penalties or before the
expiration of any extension period, except to the extent that the validity of
such assessment or tax shall be the subject of a Permitted Protest. Each
Borrower will, and will cause each of its Subsidiaries to, make timely payment
or deposit of all tax payments and withholding taxes required of any Borrower or
its Subsidiaries under Applicable Laws, including the Canadian Income Tax Act,
Statutory Lien Payments, those laws concerning F.I.C.A., F.U.T.A., state or
provincial disability, and local, state, provincial and federal income taxes,
and will, upon request, furnish Agent with proof reasonably satisfactory to
Agent indicating that the applicable Borrower or its Subsidiary has made such
payments or deposits. Upon the request of Agent, Borrowers shall deliver
reasonably satisfactory evidence of payment of applicable excise taxes in each
jurisdiction in which any Borrower or its Subsidiary is required to pay any such
excise tax.

         6.8      INSURANCE.

                  (a)      At Borrowers' expense, maintain insurance respecting
their and their Subsidiaries' assets wherever located, covering loss or damage
by fire, theft, explosion, flood (with respect to any property or assets located
in a flood zone), earthquake (in the event the probable maximum loss with
respect to such property or assets is equal to or greater than 20), and all
other hazards and risks as ordinarily are insured against by other Persons
engaged in the same or similar businesses. Borrowers also shall (and shall cause
their Subsidiaries to) maintain business interruption, public liability, and
product liability insurance, as well as insurance against larceny, embezzlement,
and criminal misappropriation. All such policies of insurance shall be in such
amounts and with such insurance companies as are reasonably satisfactory to
Agent. Borrowers shall deliver copies of all such policies to Agent with a
satisfactory lender's loss payable endorsement naming Agent as loss payee or
additional insured, as appropriate and as its interests may appear. Each policy
of insurance or endorsement shall contain a clause requiring the insurer to give
not less than 30 days prior written notice to Agent in the event of cancellation
of the policy for any reason whatsoever.

                  (b)      Administrative Borrower shall give Agent prompt
notice of any loss in excess of $100,000 for Vehicles or other personal property
covered by such insurance and any loss in excess of $500,000 for Real Property
covered by insurance. Other than with respect to Real Property subject to the
Synthetic Leases, Agent shall have the exclusive right to adjust any losses
payable under any such insurance policies in excess of $500,000 (or in any
amount during the existence of an Event of Default), without any liability to
Borrowers whatsoever in respect of such adjustments. Adjustments of any losses
with respect to Borrower's Real property subject to the Synthetic Leases shall
be subject to the terms thereof. Any monies received as payment for any loss
under any insurance policy mentioned above (other than liability insurance
policies) or as payment of any award or compensation for condemnation or taking
by eminent domain (other than any such award or compensation payable with
respect to Real Property subject to the Synthetic Leases), shall be paid over to
Agent to be applied at the option of the Required Lenders either to the
prepayment of the Obligations or shall be disbursed to Administrative Borrower
under staged payment terms reasonably satisfactory to the Required Lenders for
application to the cost of repairs, replacements, or restorations. Application
of any such award or

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<PAGE>

compensation payable with respect to Real Property subject to the Synthetic
Leases shall be subject to the terms thereof. Any such repairs, replacements, or
restorations shall be effected with reasonable promptness and shall be of a
value at least equal to the value of the items or property destroyed prior to
such damage or destruction.

                  (c)      Borrowers shall not, nor shall they permit any of the
Guarantors to, take out separate insurance concurrent in form or contributing in
the event of loss with that required to be maintained under this Section 6.8,
unless Agent is included thereon as named insured with the loss payable to Agent
under a lender's loss payable endorsement or its equivalent. Administrative
Borrower immediately shall notify Agent whenever such separate insurance is
taken out, specifying the insurer thereunder and full particulars as to the
policies evidencing the same, and copies of such policies promptly shall be
provided to Agent.

                  (d)      Borrowers and Guarantors shall maintain their
insurance program with respect to the Vehicles as in effect on the Closing Date
with RepWest or, upon the consent of Agent, which consent shall not be
unreasonably withheld, with such other insurer as may be agreed upon by
Borrowers and Agent so long as the terms of such replacement self-insurance
program are reasonably similar to the insurance program with RepWest as of the
Closing Date.

         6.9      LOCATION OF EQUIPMENT. Store the Equipment of Loan Parties
only at the Real Property and the locations of the U-Haul Dealers named on the
Dealer List, excluding (a) Vehicles in-transit from one U-Haul Dealer location
to another U-Haul Dealer location, (b) Vehicles that have been leased in the
ordinary course of Borrowers' and Guarantors' businesses and consistent with
their past practices anywhere in the United States and Canada, and (c) Vehicles
located at new U-Haul Dealers added subsequent to the most recently provided
Dealer List. Borrowers shall, or shall cause the Guarantors to, update the
Reservation Management System on a regular basis consistent with their past
practices and shall grant Agent access to such system upon Agent's request.

         6.10     COMPLIANCE WITH LAWS. Comply with the requirements of all
Applicable Laws, rules, regulations, and orders of any Governmental Authority,
including the Fair Labor Standards Act and the Americans With Disabilities Act,
other than laws, rules, regulations, and orders the non-compliance with which,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Change.

         6.11     LEASES.

                  (a)      Pay when due all rents and other amounts payable
under any leases to which any Borrower or any Guarantor is a party or by which
any Borrower's or any Guarantor's properties and assets are bound, unless such
payments are the subject of a Permitted Protest, and

                  (b)      Promptly exercise each one year renewal or extension
option available under each Synthetic Lease within the time period specified
therein.

         6.12     BROKERAGE COMMISSIONS. Pay any and all brokerage commission or
finders fees incurred in connection with or as a result of Borrowers' obtaining
financing from the Lender Group under this Agreement. Borrowers agree and
acknowledge that payment of all such brokerage commissions or finders fees shall
be the sole responsibility of Borrowers, and each

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Borrower agrees to indemnify, defend, and hold Agent and the Lender Group
harmless from and against any claim of any broker or finder arising out of
Borrowers' obtaining financing from the Lender Group under this Agreement.

         6.13     EXISTENCE. At all times preserve and keep in full force and
effect each Borrower's and each Guarantor's valid existence and good standing
and any rights, licenses, permits and franchises material to Borrowers' and
Guarantors' businesses.

         6.14     ENVIRONMENTAL.

                  (a)      Keep any property either owned or operated by any
Loan Party free of any Environmental Liens or post bonds or other financial
assurances sufficient to satisfy the obligations or liability evidenced by such
Environmental Liens, (b) comply, in all material respects, with Environmental
Laws and provide to Agent documentation of such compliance which Agent
reasonably requests, (c) promptly notify Agent of any release of a Hazardous
Material of any reportable quantity from or onto property owned or operated by
any Loan Party and take any Remedial Actions required to abate said release or
otherwise to come into compliance with applicable Environmental Law, and (d)
promptly, but in any event within 5 days of its receipt thereof, provide Agent
with written notice of the receipt of any of the following: (i) notice that an
Environmental Lien has been filed against any of the real or personal property
of any Loan Party, (ii) commencement of any Environmental Action or notice that
an Environmental Action will be filed against any Loan Party, and (iii) notice
of a violation, citation, or other administrative order which reasonably could
be expected to result in a Material Adverse Change.

         6.15     DISCLOSURE UPDATES. Promptly and in no event later than 5
Business Days after obtaining knowledge thereof, notify Agent if any written
information, exhibit, or report furnished to the Lender Group contained any
untrue statement of a material fact or omitted to state any material fact
necessary to make the statements contained therein not misleading in light of
the circumstances in which made. The foregoing notwithstanding, any notification
pursuant to the foregoing provision will not cure or remedy the effect of the
prior untrue statement of a material fact or omission of any fact nor shall any
such notification have the effect of amending or modifying this Agreement or any
of the Schedules hereto.

         6.16     MATERIAL CONTRACTS; AFFILIATE CONTRACTS. In the event any
Borrower or Guarantor shall enter into any Material Contract or, subject to
Section 7.14, any new Affiliate Contract, after the Closing Date, deliver to
Agent, within 30 days of entering into such Material Contract or Affiliate
Contract, an updated Schedule M-1 or Schedule A-1, as applicable, reflecting the
addition of such Material Contract or Affiliate Contract, together with a copy
of such executed Material Contract or Affiliate Contract. Each Borrower and
Guarantor shall also provide Agent with an executed copy of any contract with
any of SAC Holding, SSI, PMSR or PM Preferred executed after the Closing Date.

         6.17     EMPLOYEE BENEFITS.

                  (a)      (i) Promptly, and in any event within 10 Business
Days after any Borrower or any Subsidiary of a Borrower knows or should know
that an ERISA Event has

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occurred that reasonably could be expected to result in a Material Adverse
Change, deliver to Agent a written statement of the chief financial officer of
Parent describing such ERISA Event and any action that is being taking with
respect thereto by any such Borrower, any such Subsidiary or ERISA Affiliate,
and any action taken or threatened by the IRS, Department of Labor, or PBGC, and
such Borrower or such Subsidiary, as applicable, shall be deemed to know all
facts known by the administrator of any Benefit Plan of which it is the plan
sponsor, (ii) promptly, and in any event within 3 Business Days after the filing
thereof with the IRS, deliver to Agent a copy of each funding waiver request
filed with respect to any Benefit Plan and all communications received by any
Borrower, any Subsidiary of a Borrower or, to the knowledge of such Borrower,
any ERISA Affiliate with respect to such request, and (iii) promptly, and in any
event within 3 Business Days after receipt by any Borrower, deliver to Agent any
Subsidiary of a Borrower or, to the knowledge of any Borrower, any Subsidiary,
any ERISA Affiliate, of the PBGC's intention to terminate a Benefit Plan or to
have a trustee appointed to administer a Benefit Plan, copies of each such
notice.

                  (b)      Cause to be delivered to Agent, upon Agent's request,
each of the following: (i) a copy of each Benefit Plan (or, where any such plan
is not in writing, complete description thereof) (and if applicable, related
trust agreements or other funding instruments) and all amendments thereto, all
written interpretations thereof and written descriptions thereof that have been
distributed to employees or former employees of any Borrower or its
Subsidiaries; (ii) the most recent determination letter issued by the IRS with
respect to each Benefit Plan; (iii) for the 3 most recent plan years, annual
reports on Form 5500 Series required to be filed with any governmental agency
for each Benefit Plan; (iv) all actuarial reports prepared for the last 3 plan
years for each Benefit Plan; (v) a listing of all Multiemployer Plans, with the
aggregate amount of the most recent annual contributions required to be made by
any Borrower, any Subsidiary of a Borrower, or any ERISA Affiliate to each such
plan and copies of the collective bargaining agreements requiring such
contributions; (vi) any information that has been provided to any Borrower, any
Subsidiary of a Borrower or any ERISA Affiliate regarding withdrawal liability
under any Multiemployer Plan; and (vii) the aggregate amount of the most recent
annual payments made to former employees of any Borrower or its Subsidiaries
under any Retiree Health Plan.

         6.18     REAL ESTATE. If at any time after the Closing Date, any
Borrower or any Guarantor acquires any fee interest in Real Property with a fair
market valuation in excess of $250,000, such Borrower shall, or Borrowers shall
cause such Guarantor to, promptly execute, deliver and record a first priority
Mortgage in favor of Agent covering such Real Property interest, in form and
substance reasonably satisfactory to Agent, and provide (a) the Agent with a
Mortgage Policy insuring the first priority Lien of said Mortgage in such Real
Property encumbered thereby in an amount reasonably acceptable to Agent and
subject only to Permitted Liens and to such other exceptions as are reasonably
satisfactory to Agent, (b) a satisfactory legal description of such property and
an opinion from special counsel to such Borrower or Guarantor, (c) to the extent
necessary under Applicable Laws, Uniform Commercial Code financing statements
covering fixtures, in each case appropriately completed and duly executed, for
filing in the appropriate county land office and (d) evidence that such Person
shall have paid to the applicable title insurance company all expenses of such
title insurance company in connection with the issuance of such reports and in
addition shall have paid to such title insurance company an amount equal to the
recording and stamp taxes (including mortgage recording taxes), if any,

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payable in connection with recording such Mortgages in the appropriate county
land offices. In addition, each such Borrower or Guarantor delivering a Mortgage
pursuant to this Section 6.18 shall deliver a copy of all existing phase-I or
phase-II environmental reports with respect to such Real Property to Agent and,
upon the reasonable request of Agent, cause to be performed, at Borrowers' joint
and several cost and expense, phase-I or phase-II environmental audits, in form
and substance and by an independent firm reasonably satisfactory to Agent.

         6.19     REORGANIZATION PLAN. Comply in all material respects with the
provisions of the Reorganization Plan.

         6.20     VEHICLES.

                  (a)      (i) Deposit all Certificates of Title into a
segregated, secured location at Parent's chief executive office located at 2727
North Central, Phoenix, Arizona, the access to which shall be limited to Agent,
its representatives and agents, Roberta Holmes and Joan Gibson and such
Certificates of Title and such Persons shall be covered by a fidelity insurance
policy naming Agent as loss payee or a bond endorsed to Agent, in either case in
form and substance reasonably satisfactory to Agent (which shall include
coverage of at least $5,000,000), and (ii) timely pay all fees required by the
States of Alaska, Arizona and Hawaii, as applicable, with respect to such
Vehicle registrations and the issuances of the corresponding Certificates of
Title.

                  (b)      (i) Follow the procedures set forth in Section
5.25(a), Section 5.25(b) and Section 5.25(c), as applicable, and Section 6.20(a)
with respect to any Vehicle (excluding any trailer) acquired by any Borrower or
Guarantor after the Closing Date that is not intended to be transferred into a
TRAC Lease Transaction within 130 days of the acquisition of such Vehicle, and
(ii) pursuant to the laws of the States of Alaska, Arizona and Hawaii, as
applicable, timely renew all registrations and Certificates of Title held by
Borrowers with respect to the Vehicles.

                  (c)      Borrowers hereby acknowledge and agree that (i) they
shall hold and maintain all Certificates of Title on behalf of, and as an
attorney-in-fact and agent for, Agent, (ii) Agent's security interest in, Liens
on, and all rights and remedies with respect to the Vehicles and the
Certificates of Title shall remain valid and enforceable at all times, and (iii)
during the existence of an Event of Default or if Agent is not satisfied with
the results of any inspection under Section 4.6(b), Borrowers shall, or shall
cause the Guarantors to, promptly comply with any request or direction by Agent
to deliver the Certificates of Title to Agent or to such other Person or
location as Agent may direct in its Permitted Discretion.

                  (d)      Execution of this Agreement shall be evidence of each
Borrower's consent to the Lien of Agent on the Vehicles indicated on the
Certificates of Title.

7.       NEGATIVE COVENANTS.

                  Each Borrower covenants and agrees that, until termination of
all of the Commitments and payment in full of the Obligations, Borrowers will
not and will not permit any of their respective Subsidiaries (excluding the
Insurance Subsidiaries) to do any of the following:

         7.1      INDEBTEDNESS, ETC. Create, incur, assume, suffer to exist,
guarantee, or otherwise become or remain, directly or indirectly, liable with
respect to any Indebtedness, except:

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                  (a)      Indebtedness evidenced by this Agreement and the
other Loan Documents, together with Indebtedness owed to Underlying Issuers with
respect to Underlying Letters of Credit;

                  (b)      Indebtedness in existence as of the Closing Date,
which in the case of Funded Debt shall be issued pursuant to documentation
provided to Agent prior to the Closing Date, as set forth on Schedule 5.20(a)
and obligations to make payments required under the Reorganization Plan;

                  (c)      (i) Purchase Money Indebtedness and Capitalized Lease
Obligations (other than Capital Leases of the type set forth in clause (ii) of
this Section 7.1(c)) incurred after the Closing Date in an aggregate amount not
to exceed $30,000,000, and (ii) Capital Leases, to the extent such Capital
Leases arise out of the treatment of any of the Synthetic Leases (including any
refinancings, in whole or in part, thereof) as Capital Leases in accordance with
the requirements of GAAP;

                  (d)      Indebtedness under the New AMERCO Notes and the Term
Loan B Notes;

                  (e)      guarantees permitted under Section 7.6;

                  (f)      Indebtedness comprising Permitted Investments;

                  (g)      Indebtedness with respect to letters of credit issued
by a party other than the Issuing Lender and secured by cash collateral in an
aggregate amount not to exceed $3,000,000 at any time; and

                  (h)      refinancings, renewals, or extensions of Indebtedness
permitted under clauses (b) and (c) of this Section 7.1 (and continuance or
renewal of any Permitted Liens associated therewith) (specifically excluding the
Term Loan B Notes and the New AMERCO Notes) so long as: (i) the terms and
conditions of such refinancings, renewals, or extensions do not, in Agent's
Permitted Discretion, materially impair the prospects of repayment of the
Obligations by Borrowers or materially impair Borrowers' creditworthiness, (ii)
such refinancings, renewals, or extensions do not result in an increase in the
principal amount (other than capitalized fees and, with respect to any
refinancing of the Synthetic Leases, to the extent they are treated as Capital
Leases in accordance with GAAP, any increases directly attributable to
improvements on or to the Real Property covered by such Synthetic Leases) of, or
interest rate beyond a prevailing market rate with respect to, the Indebtedness
so refinanced, renewed, or extended, (iii) such refinancings, renewals, or
extensions do not result in a shortening of the average weighted maturity of the
Indebtedness so refinanced, renewed, or extended (other than such changes in the
average weighted maturity of the Synthetic Leases, to the extent they are
treated as Capital Leases in accordance with GAAP, resulting from the
refinancing, in whole or in part, of the Synthetic Leases pursuant to the WP
Carey Transaction or other refinancing transaction in form and substance
reasonably satisfactory to Required Lenders), nor are they on terms or
conditions, that, taken as a whole, are materially more burdensome or
restrictive to the applicable Borrower, and (iv) if the Indebtedness that is
refinanced, renewed, or extended was subordinated in right of payment to the
Obligations, then the terms and conditions of the

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refinancing, renewal, or extension Indebtedness must include subordination terms
and conditions that are at least as favorable to the Lender Group as those that
were applicable to the refinanced, renewed, or extended Indebtedness.

         7.2      LIENS. Create, incur, assume, or permit to exist, directly or
indirectly, any Lien on or with respect to any of its assets, of any kind,
whether now owned or hereafter acquired, or any income or profits therefrom,
except for Permitted Liens.

         7.3      RESTRICTIONS ON FUNDAMENTAL CHANGES.

                  (a)      Enter into any merger, consolidation, reorganization,
or recapitalization, or reclassify its Stock (other than in connection with the
Reorganization Plan), except that, so long as no Default or Event of Default
then exists hereunder or would be caused thereby and the Agent receives written
notice of any such merger at least 30 days prior to the effectiveness thereof if
such merger involves a Loan Party: (i) any Subsidiary that is not a Loan Party
may merge into any other Subsidiary that is not a Loan Party, and (ii) any Loan
Party (other than Parent, U-Haul or AREC) may merge into any other Loan Party
(other than Parent, U-Haul or AREC); provided, however, (x) the Person surviving
such merger shall be a Loan Party, and (y) Agent shall have received, upon the
effectiveness of such merger, such loan documents, title insurance and opinions
of counsel as Agent may reasonably request to continue or insure the priority
and perfection of Agent's liens on the Collateral or the obligations of any such
Loan Party under any of the Loan Documents, including, without limitation, the
documents required by Section 7.13(b) hereof. Notwithstanding the foregoing, a
Subsidiary that is not an Insurance Subsidiary shall not merge with any
Insurance Subsidiary.

                  (b)      Liquidate, wind up, or dissolve any Borrower or any
Borrower's Subsidiaries (or suffer any liquidation or dissolution), except that
Parent may liquidate, dissolve or wind up any Subsidiary (other than AREC and
U-Haul or any Insurance Subsidiary) so long as (i) no Default or Event of
Default then exists hereunder or would be caused thereby and the Agent receives
written notice of any such action at least 30 days prior to the effectiveness
thereof, (ii) the assets of such Subsidiary are transferred to another
Subsidiary of Parent or, if such Subsidiary is a Loan Party, to another Loan
Party and such assets remain subject to a first priority (subject to Permitted
Liens) perfected Lien under a Loan Document after such transfer, (iii) Agent
shall have received such loan documents, title insurance and opinions of counsel
as Agent may request to continue or insure the priority and perfection of
Agent's liens on such assets or the obligations of any such Subsidiary under any
of the Loan Documents, including, without limitation, the documents required by
Section 7.13(b) hereof. Notwithstanding the foregoing, a dissolving or
liquidating Subsidiary that is not an Insurance Subsidiary shall not transfer
assets to any Insurance Subsidiary.

         7.4      DISPOSAL OF ASSETS. Other than Permitted Dispositions, convey,
sell, lease, license, assign, transfer, or otherwise dispose of, in one
transaction or a series of transactions, any of the assets of any Borrower or
any Guarantor. To the extent a sale or other disposition is permitted by clause
(k) of the definition of Permitted Dispositions and if an Authorized Officer of
Parent certifies in writing to Agent that (a) the sale is permitted under this
Section 7.4, (b) the Vehicles identified (by vehicle identification number, make
and model) in such certification are to be sold in connection with a TRAC Lease
Transaction and (c) such Vehicles are to be sold on

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a date (each such date, a "Sale Date") no later than 130 days from the date of
such certification, Agent's Lien on such Vehicles shall be deemed to be released
1 Business Day prior to such sale; provided, however, that in the event one or
more of such Vehicles are not sold in connection with a TRAC Lease Transaction
within 5 Business Days of the Sale Date indicated in such certification, the
Vehicles that are not so sold shall become subject to a Lien in favor of Agent
on the fifth Business Day following such Sale Date and Borrowers shall, or shall
cause Guarantors to, comply immediately with the requirements of this Agreement
with respect to such Vehicles, including, without limitation, Section 6.20
hereof. Borrowers shall not, without the prior consent of Agent, (x) transfer,
sell or otherwise dispose of any of the Vehicles or the Certificates of Title
except in conjunction with a Permitted Disposition hereunder, or (y) relocate
the Certificates of Title.

         7.5      CHANGE NAME. Change any Borrower's or Guarantor's name, FEIN,
Organizational ID Number, corporate structure, or identity, or add any new
fictitious name, or reincorporate or reorganize itself under the laws of any
jurisdiction other than the jurisdiction set forth on Schedule 5.7; provided,
however, that a Borrower or Guarantor may change its name upon at least 30 days'
prior written notice by Administrative Borrower to Agent of such change and so
long as, at the time of such written notification, such Borrower provides or
authorizes the filing of any Uniform Commercial Code financing statements or
fixture filings necessary to perfect and continue perfected Agent's Liens.

         7.6      GUARANTEE. Guarantee or otherwise become in any way liable
with respect to the obligations of any third Person (including the Insurance
Subsidiaries) except by endorsement of instruments or items of payment for
deposit to the account of Borrowers or Guarantors or which are transmitted or
turned over to Agent, except for (a) guarantee obligations of Parent existing as
of Closing Date, (b) guarantee obligations of Parent in connection with the
Reorganization Plan, (c) guarantee obligations of Parent with respect to the
Support Party Agreements, (d) guarantee obligations with respect to TRAC Lease
Transactions in the ordinary course of business, to the extent the obligations
thereunder are permitted by this Agreement and are consistent with past
practices, (e) guarantee obligations of a Loan Party pursuant to any
refinancing, renewal or extension of Indebtedness permitted pursuant to Section
7.1(h) hereof, and (f) guarantee obligations of a Loan Party with respect to the
obligations of any other Loan Party incurred in the ordinary course of business,
to the extent such guaranteed obligation is permitted to be incurred by such
guaranteed Loan Party hereunder and is consistent with past practices.

         7.7      NATURE OF BUSINESS. Make any change in the principal nature of
any Borrower's or any Subsidiary's business.

         7.8      PREPAYMENTS AND AMENDMENTS.

                  (a)      Prepay, redeem, defease, purchase, or otherwise
acquire any Indebtedness of any Loan Party, other than (i) the DIP Obligations;
(ii) as required by the Confirmation Order; (iii) Obligations in accordance with
this Agreement; (iv) in connection with a refinancing permitted by Section
7.1(h); (v) (1) prepayments of the Indebtedness under the New AMERCO Notes, from
the proceeds from the monetization or sale of the Excluded Assets, or (2) so
long as no Event of Default Exists, other prepayments of Indebtedness under the
Term Loan B Notes or the New AMERCO Notes so long as (A) the aggregate amount of
such prepayments in any fiscal

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year, together with the aggregate amount of prepayments in such fiscal year by
Borrowers pursuant to clause (3) of Section 7.8(a)(vi) plus the aggregate amount
of dividends paid in arrears in such fiscal year by Borrowers pursuant to clause
(c) of Section 7.11, shall not, in the aggregate, exceed the ECF Carry Forward
Amount, if any, then in existence, and (B) on the date of such prepayment
Borrowers are in compliance with the Excess Availability Test; (vi) (1)
prepayments of the Indebtedness under the Synthetic Leases with insurance
proceeds or condemnation proceeds received by a Loan Party in connection with
any loss or condemnation of the Synthetic Lease Collateral, (2) prepayments of
the Indebtedness under the Synthetic Leases upon the sale of any parcel of the
Real Property subject to the Synthetic Leases pursuant to an arms-length sale to
a bona fide purchaser that is not an Affiliate of Parent (whether or not an
Affiliate leases back or retains the right to manage, occupy or conduct business
at the affected Synthetic Lease Property), up to the amount of the net sale
proceeds, or (3) so long as no Event of Default exists, any other prepayments of
principal Indebtedness required pursuant to the provisions of the Synthetic
Leases, so long as (I) the aggregate amount of such prepayments in any fiscal
year, together with the aggregate amount of prepayments in such fiscal year by
Borrowers pursuant to clause (2) of Section 7.8(a)(v) plus the aggregate amount
of dividends paid in arrears in such fiscal year by Borrowers pursuant to clause
(c) of Section 7.11, shall not, in the aggregate, exceed the ECF Carry Forward
Amount, if any, then in existence, and (II) on the date of such prepayment
Borrowers are in compliance with the Excess Availability Test, (vii) in addition
to the principal payments under the Synthetic Leases to be made on the Effective
Date as contemplated by the Reorganization Plan, the actual scheduled payments
of principal and interest due under the Synthetic Leases, estimates of which are
set forth on Schedule 7.8(a) (including any refinancings, in whole or in part,
thereof), or (viii) other Indebtedness with the consent of the Required Lenders.

                  (b)      Except in connection with a refinancing permitted by
Section 7.1(h), directly or indirectly, amend, modify, alter, increase, or
change any of the terms or conditions of any agreement, instrument, document,
indenture, or other writing evidencing or concerning Indebtedness permitted
under Section 7.1 (excluding any amendment to the Term Loan B Note Indenture
that must be made pursuant to Section 9.07 thereof).

                  (c)      Amend, modify or otherwise change its Governing
Documents, including, without limitation, by the filing or modification of any
certificate of designation, or any agreement or arrangement entered into by it
with respect to any of its capital Stock (including any shareholders'
agreement), or enter into any new agreement with respect to any of its capital
Stock, except as appropriate to accomplish a transaction permitted pursuant to
Section 7.3(a) or Section 7.3(b), or (ii) amend, modify or otherwise change any
Material Contract (other than a Material Contract the amendment of which is
governed by clause (b) above) except any such amendments, modifications or
changes or any such new agreements or arrangements pursuant to this paragraph
(c) that, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Change, or (iii) amend, modify or otherwise
change any Affiliate Contract or any contract with SAC Holding, SSI, PMSR or PM
Preferred except in compliance with Section 7.14 hereof.

         7.9      CHANGE OF CONTROL. Cause, permit, or suffer, directly or
indirectly, any Change of Control, other than in connection with the
consummation of the Reorganization Plan on the Effective Date.

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         7.10     OWNERSHIP OF CERTAIN ASSETS. Cause, permit, or suffer any
Subsidiary, other than Borrowers and U-Haul (Canada), to own any parcel of Real
Property Collateral or any Vehicle included in the Collateral unless (a)
Administrative Borrower provides Agent with 10 days' prior written notice of
such intended ownership, and (b) such Subsidiary becomes a Borrower under this
Agreement and delivers to Agent any Additional Documents requested by Agent in
its Permitted Discretion to perfect its Lien on such assets.

         7.11     DISTRIBUTIONS. Make any distribution or declare or pay any
dividends (in cash or other property, other than common Stock) on, or purchase,
acquire, redeem, or retire any of any Loan Party's Stock, of any class, whether
now or hereafter outstanding, except, so long as no Event of Default has
occurred and is continuing hereunder or would result therefrom, distributions or
declarations and payments of dividends: (a) by a Borrower to another Borrower or
by a Guarantor to another Loan Party, (b) on the preferred stock of Parent,
based on the accrual of dividends subsequent to the Closing Date (including,
without limitation, the payment of dividends in an aggregate amount not to
exceed $3,335,000 paid on account of dividends on the preferred stock of Parent
accrued for the period ended February 29, 2004), in an aggregate amount not to
exceed $13,000,000 in any fiscal year, so long as at the time of payment of any
such dividend, Borrowers are in compliance with the Excess Availability Test,
and (c) on the preferred stock of Parent, based on the accrual of dividends
prior to the Closing Date (including, without limitation, the payment of
dividends in an aggregate amount not to exceed $3,335,000 paid on account of
dividends on the preferred stock of Parent accrued prior to or for the period
ended November 30, 2003), so long as (i) the aggregate amount of such dividends
in arrears shall not exceed the lesser of (x) $19,600,000 paid in the aggregate
on or after the Closing Date or (y) together with the aggregate amount of any
prepayments paid by Borrowers in such fiscal year pursuant to clause (2) of
Section 7.8(a)(v) plus the aggregate amount of any prepayments paid by Borrowers
in such fiscal year pursuant to clause (3) of Section 7.8(a)(vi), the ECF Carry
Forward Amount, if any, then in existence, and (ii) at the time of payment of
any such dividend in arrears, Borrowers are in compliance with the Excess
Availability Test.

         7.12     ACCOUNTING METHODS. Modify or change their fiscal year from a
year ending March 31 or their method of accounting (other than as may be
required to conform to GAAP) or enter into, modify, or terminate any agreement
currently existing, or at any time hereafter entered into with any third party
accounting firm or service bureau for the preparation or storage of Borrowers'
or their Subsidiaries' accounting records without said accounting firm or
service bureau agreeing to provide Agent information regarding the Collateral or
Borrowers' and their Subsidiaries financial condition.

         7.13     FORMATION OF SUBSIDIARIES; INVESTMENTS.

                  (a)      Except for Permitted Investments, directly or
indirectly, make or acquire any Investment, or incur any liabilities (including
contingent obligations) for or in connection with any Investment; provided,
however, that Parent and its Subsidiaries shall not (i) have Permitted
Investments (other than in the Cash Management Accounts) in Deposit Accounts or
Securities Accounts in excess of $3,000,000 in the aggregate outstanding at any
one time (excluding (x) Deposit Accounts or Securities Accounts containing only
the cash proceeds received from the WP Carey Transaction (to the extent such
proceeds will be fully utilized in such transaction), and any proceeds from the
monetization of Excluded Assets, and (y) any

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Deposit Accounts maintained by U-Haul solely in its capacity as manager of
properties owned by SAC Holding or SSI under a Management Agreement provided
U-Haul has no rights to or interest in the funds deposited therein) unless
Parent or any of its Subsidiaries, as applicable, and the applicable securities
intermediary or bank have entered into Control Agreements or similar
arrangements governing such Permitted Investments, as Agent shall determine in
its Permitted Discretion, to perfect (and further establish) the Agent's Liens
in such Permitted Investments, or (ii) forgive or waive the repayment or
retirement or amend the terms of any Investment in existence on or after the
Closing Date in SAC Holding or any such Person made by the Parent or any
Subsidiary that is required to be repaid or retired by the terms of such
Investment as in effect on or after the Closing Date (other than in accordance
with the terms thereof as in effect on the date the Investment is made).

                  (b)      Form any new Subsidiary or acquire any direct or
indirect Subsidiary after the Closing Date, unless (i) such Subsidiary is a
wholly-owned Subsidiary of a Loan Party, and such Loan Party shall (x) cause
such new Subsidiary to provide to Agent a joinder to this Agreement or the
Guaranty, the Guarantor Security Agreement, the Copyright Security Agreement,
and the Patent and Trademark Security Agreement, together with such other
security documents (including Mortgages with respect to any Real Property of
such new Subsidiary), as well as appropriate Uniform Commercial Code financing
statements (and with respect to all property subject to a Mortgage, fixture
filings), all in form and substance satisfactory to Agent (including being
sufficient to grant Agent a first priority Lien (subject to Permitted Liens) in
and to the assets of such newly formed or acquired Subsidiary), (y) provide to
Agent a pledge agreement and appropriate certificates and powers or Uniform
Commercial Code financing statements, hypothecating all of the direct or
beneficial ownership interest in such new Subsidiary, in form and substance
satisfactory to Agent, and (z) provide to Agent all other documentation,
including one or more opinions of counsel satisfactory to Agent, which in its
opinion is appropriate with respect to the execution and delivery of the
applicable documentation referred to above (including policies of title
insurance or other documentation with respect to all property subject to a
Mortgage), and (ii) Agent receives 30 days' prior written notice of such
formation or acquisition. Any document, agreement, or instrument executed or
issued subject to this Section 7.13(b) shall be a Loan Document.

         7.14     TRANSACTIONS WITH AFFILIATES. Except (a) as otherwise set
forth in the Reorganization Plan, (b) for Parent's reimbursement to, or payment
on behalf of, SAC Holding, of (i) reasonable attorneys' fees incurred by SAC
Holding in connection with the preparation, negotiation and implementation of
the SAC Participation and Subordination Agreement, not to exceed an aggregate
amount of $500,000, (ii) any and all reasonable direct out of pocket expenses
(including reasonable attorneys' fees and accountants' fees and trustee's fees,
but excluding the payment of principal, premium, if any, and interest in respect
of the SAC Holding Senior Bond and any other amount payable by SAC Holding
pursuant to the terms of the SAC Note Indenture) incurred by SAC Holding in
connection with its reporting or other compliance obligations under the SAC
Notes Indenture in an aggregate amount not to exceed $1,000,000 in any 12-month
period, and (iii) Parent's obligations under the Agreement to Indemnify, or (c)
as consented to by Agent and the Required Lenders, directly or indirectly, enter
into or permit to exist any transaction with any Affiliate of any Borrower, SAC
Holding, SSI, PMSR or PM Preferred except for transactions that are in the
ordinary course of Borrowers' business, upon fair and reasonable terms, that are
fully disclosed to Agent, and that are no less favorable to

                                       96
<PAGE>

Borrowers than would be obtained in an arm's length transaction with a
non-Affiliate. Borrowers shall not, and shall not permit any of their
Subsidiaries to, transfer any cash or assets to the Insurance Subsidiaries, the
Dormant Subsidiaries or INW under any circumstances whatsoever or guarantee or
otherwise incur any Indebtedness on behalf of such Insurance Subsidiaries,
Dormant Subsidiaries or INW.

         7.15     SUSPENSION. Except as permitted by Section 7.3, suspend or go
out of a substantial portion of its business.

         7.16     [INTENTIONALLY OMITTED.]

         7.17     USE OF PROCEEDS. Use the Letters of Credit and the proceeds of
the Advances and the Term Loan for any purpose other than (a) on the Closing
Date, (i) to pay transactional fees, costs, and expenses incurred in connection
with this Agreement, the other Loan Documents, and the transactions contemplated
hereby and thereby, (ii) to repay, in full, the outstanding DIP Obligations, and
(iii) to fund the Reorganization Plan and (b) thereafter, for working capital
and other general corporate purposes of Borrowers, in each case consistent with
the terms and conditions hereof, for its lawful and permitted purposes.

         7.18     CHANGE IN LOCATION OF CHIEF EXECUTIVE OFFICE; EQUIPMENT WITH
BAILEES. Relocate its chief executive office to a new location without
Administrative Borrower providing 30 days' prior written notification thereof to
Agent and so long as, at the time of such written notification, the applicable
Borrower provides or authorizes, at the request of Agent, the filing of any
Uniform Commercial Code financing statements or fixture filings necessary to
perfect and continue perfected the Agent's Liens and also provides to Agent a
Collateral Access Agreement, a form of which Agent shall provide to
Administrative Borrower, with respect to such new location. The Equipment of
Borrowers and Guarantors shall not at any time now or hereafter be stored with a
bailee, warehouseman, or similar party (other than a U-Haul Dealer) without
Agent's prior written consent.

         7.19     SECURITIES ACCOUNTS. Establish or maintain any Securities
Account unless Agent shall have received a Control Agreement in respect of such
Securities Account. No Loan Party shall transfer assets out of any Securities
Account; provided, however, that, so long as no Event of Default has occurred
and is continuing or would result therefrom, such Loan Party may use such assets
(and the proceeds thereof) to the extent not prohibited by this Agreement.

         7.20     FINANCIAL COVENANTS.

                  (a)      EBITDA/CAPITAL EXPENDITURES. Allow Consolidated
EBITDA minus Capital Expenditures, each as measured on a fiscal quarter-end
basis for the applicable period set forth below, to be less than the required
amount set forth in the following table as of the applicable date set forth
opposite thereto:

<TABLE>
<CAPTION>
Applicable Amount                                           Applicable Date
-----------------                                           ---------------
<S>                                                    <C>
   $15,000,000                                           For the 3-month period
                                                          ending June 30, 2004
</TABLE>

                                       97
<PAGE>

<TABLE>
<CAPTION>
Applicable Amount                                           Applicable Date
-----------------                                           ---------------
<S>                                                    <C>
   $65,000,000                                           For the 6-month period
                                                       ending September 30, 2004

   $65,000,000                                           For the 9-month period
                                                        ending December 31, 2004

   $60,000,000                                          For the 12-month period
                                                         ending March 31, 2005

   $48,000,000                                          For the 12-month period
                                                          ending June 30, 2005

   $25,000,000                                          For the 12-month period
                                                       ending September 30, 2005

   $25,000,000                                          For the 12-month period
                                                        ending December 31, 2005

   $30,000,000                                          For the 12-month period
                                                         ending March 31, 2006

   $80,000,000                                          For the 12-month period
                                                          ending June 30, 2006

  $115,000,000                                          For the 12-month period
                                                       ending September 30, 2006

  $110,000,000                                          For the 12-month period
                                                        ending December 31, 2006

  $105,000,000                                          For the 12-month period
                                                        ending March 31, 2007
</TABLE>

; provided, however, that based upon Borrowers' Projections delivered to Agent
pursuant to Section 6.3(c), the Required Lenders shall establish quarterly
EBITDA minus Capital Expenditure covenants for each fiscal quarter after March
2007, using the same methodology as utilized for 2004, 2005 and 2006, and the
covenants shall be presented to Administrative Borrower for its approval, which
approval shall not be unreasonably withheld. In the event Administrative
Borrower does not approve the proposed covenants, Required Lenders shall
establish such covenants, in their Permitted Discretion, based upon Borrowers'
Projections for the applicable fiscal year.

                  (b)      CAPITAL EXPENDITURES. Make Capital Expenditures in
any fiscal year in excess of the amount set forth in the following table for the
applicable period:

<TABLE>
<CAPTION>
Fiscal Year 2005          Fiscal Year 2006       Fiscal Year 2007
----------------          ----------------       ----------------
<S>                       <C>                    <C>
   $185,000,000             $245,000,00            $195,000,000
</TABLE>

                                       98
<PAGE>

; provided, however, that based upon Borrowers' Projections delivered to Agent
pursuant to Section 6.3(c), the Required Lenders shall establish quarterly
Capital Expenditure covenants for each fiscal year after 2007, using the same
methodology as utilized for 2005, 2006 and 2007, and the covenants shall be
presented to Administrative Borrower for its approval, which approval shall not
be unreasonably withheld. In the event Administrative Borrower does not approve
the proposed covenants, Required Lenders shall establish such covenants, in
their Permitted Discretion, based upon Borrowers' Projections for the applicable
fiscal year.

         7.21     NO PROHIBITED TRANSACTIONS UNDER ERISA. Directly or
indirectly:

                  (a)      engage, or permit any Subsidiary of any Borrower to
engage, in any prohibited transaction which is reasonably likely to result in a
civil penalty or excise tax described in Sections 502(i) of ERISA or 4975 of the
IRC for which a statutory or class exemption is not available or a private
exemption has not been previously obtained from the Department of Labor;

                  (b)      with respect to any Benefit Plan, permit to exist an
accumulated funding deficiency (as defined in Sections 302 of ERISA and 412 of
the IRC) for a period longer than 30 days, whether or not waived;

                  (c)      fail, or permit any Subsidiary of any Borrower to
fail, to pay timely required contributions or annual installments due with
respect to any waived funding deficiency to any Benefit Plan;

                  (d)      terminate, or permit any Subsidiary of any Borrower
to terminate, any Benefit Plan where such event would result in any liability of
any Borrower, any Subsidiary of any Borrower or any ERISA Affiliate under Title
IV of ERISA;

                  (e)      fail, or permit any Subsidiary of any Borrower to
fail, to make any required contribution or payment to any Multiemployer Plan;

                  (f)      fail, or permit any Subsidiary of any Borrower to
fail, to pay any required installment or any other payment required under
Section 412 of the IRC on or before the due date for such installment or other
payment;

                  (g)      amend, or permit any Subsidiary of any Borrower to
amend, a Benefit Plan resulting in an increase in current liability for the plan
year such that any Borrower, any Subsidiary of any Borrower or any ERISA
Affiliate is required to provide security to such Plan under Section 401(a)(29)
of the IRC; or

                  (h)      withdraw, or permit any Subsidiary of any Borrower to
withdraw, from any Multiemployer Plan where such withdrawal is reasonably likely
to result in any liability of any such entity under Title IV of ERISA;

                                       99
<PAGE>

that, individually or in the aggregate, results in or reasonably would be
expected to result in a claim against or liability of any Borrower, any
Subsidiary of any Borrower or any ERISA Affiliate in excess of $25,000.

         7.22     SALES AND LEASEBACKS. Except for Permitted Dispositions, enter
into any arrangement, directly or indirectly, with any third party whereby any
Loan Party shall sell or transfer any property, real or personal, whether now
owned or hereafter acquired, and whereby such Loan Party shall then or
thereafter rent or lease as lessee of such property or any part thereof or other
property that such Loan Party intends to use for substantially the same purpose
or purposes as the property sold or transferred.

         7.23     ANTI-TERRORISM LAWS. (a) Conduct any business or engage in any
transaction or dealing with any Blocked Person, including the making or
receiving any contribution of funds, goods or services to or for the benefit of
any Blocked Person; (b) deal in, or otherwise engage in any transaction relating
to, any property or interests in property blocked pursuant to Executive Order
No. 13224; or (c) engage in on conspire to engage in any transaction that evades
or avoids, or has the purpose of evading or avoiding, or attempts to violate,
(i) any of the prohibitions set forth in Executive Order No. 13224 or the USA
Patriot Act, or (ii) any prohibitions set forth in the rules or regulations
issued by OFAC or any sanctions against targeted foreign countries, terrorism
sponsoring organizations, and international narcotics traffickers based on U.S.
foreign policy. Borrowers shall deliver to Agent and Lenders any certification
or other evidence requested from time to time by Agent or any Lender, in their
Permitted Discretion, confirming Borrowers' compliance with this Section 7.23.

         7.24     SPECULATIVE TRANSACTIONS. Engage in any transaction involving
commodity options or futures contracts or any similar speculative transactions
except for Hedge Agreements that are used solely as part of normal business
operations as a risk management strategy and/or hedge against charges resulting
from market operations in accordance with Parent's customary policies and not as
a means to speculate for investment purposes or trends and shifts in financial
or commodities markets.

8.       EVENTS OF DEFAULT.

                  Any one or more of the following events shall constitute an
event of default (each, an "Event of Default") under this Agreement:

         8.1.     If Borrowers fail to pay when due and payable, or when
declared due and payable, all or any portion of the Obligations (whether of
principal, interest, fees and charges due the Lender Group, reimbursement of
Lender Group Expenses, or other amounts constituting Obligations); provided,
however that in the case of Overadvances that are caused by the charging of
interest, fees, or Lender Expenses to the Loan Account, such event shall not
constitute an Event of Default if, within 3 Business Days of its receipt of
telephonic notice of such Overadvance, Borrowers eliminate such Overadvance;

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<PAGE>

         8.2.     If any of the Loan Parties:

                  (a)      fails to perform, keep, or observe any term,
provision, covenant, or agreement contained in Sections 2.7, 3.2, 4.2, 4.4, 4.6,
4.8, 6.8, 6.11(b), 6.13, 6.20, and 7.1 through 7.24 of this Agreement;

                  (b)      fails or neglects to perform, keep, or observe any
term, provision, covenant, or agreement contained in Sections 4.5, 6.2, 6.3,
6.6, 6.7, 6.9, 6.10, 6.11(a), 6.14, 6.15 and 6.19 of this Agreement and such
failure continues for a period of 15 Business Days; or

                  (c)      fails or neglects to perform, keep, or observe any
other term, provision, covenant, or agreement contained in this Agreement, or in
any of the other Loan Documents (giving effect to any grace periods, cure
periods, or required notices, if any, expressly provided for in such Loan
Documents); in each case, other than any such term, provision, covenant, or
agreement that is the subject of another provision of this Section 8 (in which
event such other provision of this Section 8 shall govern), and such failure
continues for a period of 15 Business Days;

provided that, during any period of time that any such failure or neglect
referred to in this paragraph exists, even if such failure or neglect is not yet
an Event of Default, Lenders shall be relieved of their obligations to extend
credit hereunder;

         8.3.     If any material portion of any Loan Party's assets is
attached, seized, subjected to a writ or distress warrant, levied upon, or comes
into the possession of any third Person;

         8.4.     If any Loan Party is enjoined, restrained, or in any way
prevented by court order from continuing to conduct all or any material part of
its business affairs;

         8.5.     If a notice of Lien, levy, or assessment, individually or in
the aggregate in an amount of $500,000 or greater, is filed of record with
respect to any Loan Party's assets by the United States or Canada, or any
department, agency, or instrumentality thereof, or by any state, province,
territory, county, municipal, or governmental agency, or if any taxes or debts
owing at any time hereafter to any one or more of such entities becomes a Lien,
whether choate or otherwise, upon any Borrower's or any of its Subsidiaries'
assets and the same is not paid on the payment date thereof;

         8.6.     If a judgment or other claim becomes a Lien or encumbrance
upon any material portion of any Loan Party's properties or assets;

         8.7.     If there is a default in any material agreement to which any
Loan Party is a party including, without limitation, any Material Contract,
Affiliate Contract or any material contract with any of SAC Holding, SSI, PMSR
or PM Preferred (other than the New AMERCO Notes, the Term Loan B Notes and the
Synthetic Leases) or any other Indebtedness in excess of $1,000,000, and such
default (a) occurs at the final maturity of the obligations thereunder, or (b)
results in the acceleration of the maturity of the applicable Loan Party's
obligations thereunder;

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<PAGE>

         8.8.     Except as otherwise set forth in the Reorganization Plan or as
otherwise permitted by this Agreement, if any Loan Party makes any payment on
account of Indebtedness that has been contractually subordinated in right of
payment to the payment of the Obligations;

         8.9.     If any material misstatement or material misrepresentation
exists now or hereafter in any warranty, representation, statement, or Record
made to the Lender Group by any Borrower, its Subsidiaries, or any officer,
employee, agent, or director of any Borrower or any of its Subsidiaries;

         8.10.    If the obligation of any Guarantor under its Guaranty is
limited or terminated by operation of law or by such Guarantor thereunder;

         8.11.    If this Agreement or any other Loan Document that purports to
create a Lien, shall, for any reason, fail or cease to create a valid and
perfected and, except to the extent permitted by the terms hereof or thereof,
first priority Lien on or security interest in the Collateral covered hereby or
thereby;

         8.12.    If any provision of any Loan Document shall at any time for
any reason be declared to be null and void, or the validity or enforceability
thereof shall be contested by any Loan Party, or a proceeding shall be commenced
by any Loan Party, or by any Governmental Authority having jurisdiction over any
Loan Party, seeking to establish the invalidity or unenforceability thereof, or
any Loan Party shall deny that any Loan Party has any liability or obligation
purported to be created under any Loan Document;

         8.13.    If suit or action is commenced against Agent or the Lenders
and, as to any suit or action brought by any Person other than Borrowers or
Guarantors or an officer or employee of Borrowers, is continued without
dismissal for 30 days after service thereof on the Lenders, that asserts, by or
on behalf of Borrowers or Guarantors, any claim or legal or equitable remedy
which seeks subordination of the claim or Lien of the Lenders hereunder or under
any other Loan Document;

         8.14.    If any Loan Party shall file any application in support of, or
shall otherwise fail to contest in good faith, a suit or action of the type set
forth in Section 8.13 filed by any Person other than a Borrower or an officer or
employee of Borrowers;

         8.15.    If an Insolvency Proceeding is commenced by or against any
Loan Party, or any of its Subsidiaries (other than INW), and any of the
following events occur: (a) the applicable Loan Party or the Subsidiary consents
to the institution of the Insolvency Proceeding against it, (b) the petition
commencing the Insolvency Proceeding is not timely controverted, (c) the
petition commencing the Insolvency Proceeding is not dismissed within 45
calendar days of the date of the filing thereof; provided, however, that, during
the pendency of such period, Lenders shall be relieved of their obligation to
extend credit hereunder, (d) an interim trustee is appointed to take possession
of all or any substantial portion of the properties or assets of, or to operate
all or any substantial portion of the business of, any Loan Party or any of its
Subsidiaries, or (e) an order for relief shall have been entered therein; or

         8.16.    (a) If any event of default occurs under any New AMERCO Note
Document, any Term Loan B Note Document or any of the Synthetic Leases; (b) if
any Term Loan B Note

                                      102
<PAGE>

Lender contests the validity or enforceability of the Term Loan B Intercreditor
Agreement or fails to comply with its obligations thereunder; or (c) if any New
AMERCO Note Lender contests that the Obligations hereunder constitute "Senior
Indebtedness" under the New AMERCO Note Documents.

9.       THE LENDER GROUP'S RIGHTS AND REMEDIES.

         9.1      RIGHTS AND REMEDIES.

                  (a)      Upon the occurrence, and during the continuation, of
an Event of Default, the Required Lenders (at their election but without notice
of their election and without demand) may authorize and instruct Agent to do any
one or more of the following on behalf of the Lender Group (and Agent, acting
upon the instructions of the Required Lenders, shall do the same on behalf of
the Lender Group), all of which are authorized by Borrowers:

                           (i)      Declare all Obligations (other than Bank
                  Product Obligations), whether evidenced by this Agreement, by
                  any of the other Loan Documents, or otherwise, immediately due
                  and payable;

                           (ii)     Cease advancing money or extending credit to
                  or for the benefit of Borrowers under this Agreement, under
                  any of the Loan Documents, or under any other agreement
                  between Borrowers and the Lender Group;

                           (iii)    Terminate this Agreement and any of the
                  other Loan Documents as to any future liability or obligation
                  of the Lender Group, but without affecting any of the Agent's
                  Liens in the Collateral and without affecting the Obligations;

                           (iv)     Settle or adjust disputes and claims
                  directly with Account Debtors of Borrowers for amounts and
                  upon terms which Agent considers advisable, and in such cases,
                  Agent will credit the Loan Account with only the net amounts
                  received by Agent in payment of such disputed Accounts after
                  deducting all Lender Group Expenses incurred or expended in
                  connection therewith;

                           (v)      Cause Borrowers to hold all of their
                  returned Inventory in trust for the Lender Group, segregate
                  all returned Inventory from all other assets of Borrowers or
                  in Borrowers' possession and conspicuously label said returned
                  Inventory as the property of the Lender Group;

                           (vi)     Without notice to or demand upon any
                  Borrower or any Guarantor, make such payments and do such acts
                  as Agent considers necessary or reasonable to protect its
                  security interests in the Collateral. Each Borrower agrees to
                  assemble the Personal Property Collateral if Agent so
                  requires, and to make the Personal Property Collateral
                  available to Agent at a place that Agent may designate which
                  is reasonably convenient to both parties. Each Borrower
                  authorizes Agent to enter the premises where the Personal
                  Property Collateral is located, to take and maintain
                  possession of the Personal Property Collateral, or any part of
                  it, and to pay, purchase, contest, or compromise any Lien that
                  in Agent's determination appears to conflict with the Agent's
                  Liens and to pay all

                                      103
<PAGE>

                  expenses incurred in connection therewith and to charge
                  Borrowers' Loan Account therefor. With respect to any of
                  Borrowers' owned or leased premises, each Borrower hereby
                  grants Agent a license to enter into possession of such
                  premises and to occupy the same, without charge, in order to
                  exercise any of the Lender Group's rights or remedies provided
                  herein, at law, in equity, or otherwise;

                           (vii)    Without notice to any Borrower (such notice
                  being expressly waived), and without constituting an
                  acceptance of any collateral in full or partial satisfaction
                  of an obligation (within the meaning of the Code), set off and
                  apply to the Obligations any and all (i) balances and deposits
                  of any Borrower held by the Lender Group (including any
                  amounts received in the Cash Management Accounts), or (ii)
                  Indebtedness at any time owing to or for the credit or the
                  account of any Borrower held by the Lender Group;

                           (viii)   Hold, as cash collateral, any and all
                  balances and deposits of any Borrower held by the Lender
                  Group, and any amounts received in the Cash Management
                  Accounts, to secure the full and final repayment of all of the
                  Obligations;

                           (ix)     Ship, reclaim, recover, store, finish,
                  maintain, repair, prepare for sale, advertise for sale, and
                  sell (in the manner provided for herein) the Personal Property
                  Collateral. Each Borrower hereby grants to Agent, for the
                  benefit of the Lender Group and the Bank Product Providers, a
                  license or other right to use, without charge, such Borrower's
                  labels, patents, copyrights, trade secrets, trade names,
                  trademarks, service marks, and advertising matter, or any
                  property of a similar nature, as it pertains to the Personal
                  Property Collateral, in completing production of, advertising
                  for sale, and selling any Personal Property Collateral and
                  such Borrower's rights under all licenses and all franchise
                  agreements shall inure to the Lender Group's benefit;

                           (x)      Sell the Personal Property Collateral at
                  either a public or private sale, or both, by way of one or
                  more contracts or transactions, for cash or on terms, in such
                  manner and at such places (including Borrowers' premises) as
                  Agent determines is commercially reasonable. It is not
                  necessary that the Personal Property Collateral be present at
                  any such sale;

                           (xi)     Agent shall give notice of the disposition
                  of the Personal Property Collateral as follows:

                                    (A)      Agent shall give Administrative
                           Borrower (for the benefit of the applicable Borrower)
                           a notice in writing of the time and place of public
                           sale, or, if the sale is a private sale or some other
                           disposition other than a public sale is to be made of
                           the Personal Property Collateral, the time on or
                           after which the private sale or other disposition is
                           to be made;

                                      104
<PAGE>

                                    (B)      The notice shall be personally
                           delivered or mailed, postage prepaid, to
                           Administrative Borrower as provided in Section 12, at
                           least 10 days before the earliest time of disposition
                           set forth in the notice; no notice needs to be given
                           prior to the disposition of any portion of the
                           Personal Property Collateral that is perishable or
                           threatens to decline speedily in value or that is of
                           a type customarily sold on a recognized market;

                                    (C)      Each Borrower hereby acknowledges
                           and agrees that such notice, when given, shall
                           constitute a reasonable "authenticated notification
                           of disposition" within the meaning of Section 9-611
                           of the Uniform Commercial Code, as in effect from
                           time to time in any applicable jurisdiction;

                           (xii)    Credit bid and purchase at any public sale;

                           (xiii)   Seek the appointment of a receiver or keeper
                  to take possession of all or any portion of the Collateral or
                  to operate same and, to the maximum extent permitted by law,
                  may seek the appointment of such a receiver without the
                  requirement of prior notice or a hearing; and

                           (xiv)    Cause any Loan Party to exercise any
                  purchase right with respect to a Vehicle that such Loan Party
                  may have at the termination of any TRAC Lease Transaction if
                  Agent determines, in its Permitted Discretion, that such Loan
                  Party has equity in such Vehicle.

                  (b)      Any deficiency that exists after disposition of the
Personal Property Collateral as provided in Section 9.1(a) will be paid
immediately by Borrowers. Any excess will be returned, without interest and
subject to the rights of third Persons, by Agent to Administrative Borrower (for
the benefit of the applicable Borrower).

                  (c)      Borrowers agree for themselves and on behalf of each
of their Subsidiaries that it would not be commercially unreasonable for Agent
to dispose of the Collateral or any portion thereof by using Internet sites that
provide for the auction of assets of the types included in such Collateral or
that have the reasonable capability of doing so, or that match buyers and
sellers.

         9.2      REMEDIES CUMULATIVE. The rights and remedies of the Lender
Group under this Agreement, the other Loan Documents, and all other agreements
shall be cumulative. The Lender Group shall have all other rights and remedies
not inconsistent herewith as provided under any other Loan Document, the Code,
by law, or in equity. No exercise by the Lender Group of one right or remedy
shall be deemed an election, and no waiver by the Lender Group of any Event of
Default shall be deemed a continuing waiver. No delay by the Lender Group shall
constitute a waiver, election, or acquiescence by it.

10.      TAXES AND EXPENSES.

                  If any Borrower fails to pay any monies (whether taxes,
assessments, insurance premiums, or, in the case of leased properties or assets,
rents or other amounts payable under

                                      105
<PAGE>

such leases) due to third Persons, or fails to make any deposits or furnish any
required proof of payment or deposit, all as required under the terms of this
Agreement, then, Agent, in its sole discretion and without prior notice to any
Borrower, may do any or all of the following, provided that, to the extent
practicable, Agent shall give Administrative Borrower 10 days' prior notice
before exercise: (a) make payment of the same or any part thereof, (b) set up
such reserves in Borrowers' Loan Account as Agent deems necessary to protect the
Lender Group from the exposure created by such failure, or (c) in the case of
the failure to comply with Section 6.8 hereof, obtain and maintain insurance
policies of the type described in Section 6.8 and take any action with respect
to such policies as Agent deems prudent. Any such amounts paid by Agent shall
constitute Lender Group Expenses and any such payments shall not constitute an
agreement by the Lender Group to make similar payments in the future or a waiver
by the Lender Group of any Event of Default under this Agreement. Agent need not
inquire as to, or contest the validity of, any such expense, tax, or Lien and
the receipt of the usual official notice for the payment thereof shall be
conclusive evidence that the same was validly due and owing.

11.      WAIVERS; INDEMNIFICATION.

         11.1     DEMAND; PROTEST; ETC. Each Borrower waives demand, protest,
notice of protest, notice of default or dishonor, notice of payment and
nonpayment, nonpayment at maturity, release, compromise, settlement, extension,
or renewal of documents, instruments, Chattel Paper, and guarantees at any time
held by the Lender Group on which any such Borrower may in any way be liable.

         11.2     THE LENDER GROUP'S LIABILITY FOR COLLATERAL. Each Borrower
hereby agrees that: (a) so long as the Lender Group complies with its
obligations, if any, under the Code, Agent shall not in any way or manner be
liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss
or damage thereto occurring or arising in any manner or fashion from any cause,
(iii) any diminution in the value thereof, or (iv) any act or default of any
carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all
risk of loss, damage, or destruction of the Collateral shall be borne by
Borrowers.

         11.3     INDEMNIFICATION. Each Borrower shall pay, indemnify, defend,
and hold the Agent-Related Persons, the Lender Related Persons with respect to
each Lender, each Participant, and each of their respective officers, directors,
employees, agents, and attorneys-in-fact (each, an "Indemnified Person")
harmless (to the fullest extent permitted by law) from and against any and all
claims, demands, suits, actions, investigations, proceedings, and damages, and
all reasonable attorneys fees and disbursements and other costs and expenses
actually incurred in connection therewith (as and when they are incurred and
irrespective of whether suit is brought), at any time asserted against, imposed
upon, or incurred by any of them (a) in connection with or as a result of or
related to the execution, delivery, enforcement, performance, or administration
(including any restructuring or workout with respect hereto) of this Agreement,
any of the other Loan Documents, or the transactions contemplated hereby or
thereby or the monitoring of Borrowers' and their Subsidiaries' compliance with
the terms of the Loan Documents, and (b) with respect to any investigation,
litigation, or proceeding related to this Agreement, any other Loan Document, or
the use of the proceeds of the credit provided hereunder (irrespective of
whether any Indemnified Person is a party thereto), or any act, omission, event,
or circumstance in any manner related thereto (all the foregoing, collectively,

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the "Indemnified Liabilities"). The foregoing to the contrary notwithstanding,
Borrowers shall have no obligation to any Indemnified Person under this Section
11.3 with respect to any Indemnified Liability that a court of competent
jurisdiction finally determines to have resulted from the gross negligence or
willful misconduct of such Indemnified Person. This provision shall survive the
termination of this Agreement and the repayment of the Obligations. If any
Indemnified Person makes any payment to any other Indemnified Person with
respect to an Indemnified Liability as to which Borrowers were required to
indemnify the Indemnified Person receiving such payment, the Indemnified Person
making such payment is entitled to be indemnified and reimbursed by Borrowers
with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO
EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE
OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH
INDEMNIFIED PERSON OR OF ANY OTHER PERSON.

12.      NOTICES.

                  Unless otherwise provided in this Agreement, all notices or
demands by Borrowers or Agent to the other relating to this Agreement or any
other Loan Document shall be in writing and (except for financial statements and
other informational documents which may be sent by first-class mail, postage
prepaid) shall be personally delivered or sent by registered or certified mail
(postage prepaid, return receipt requested), overnight courier, electronic mail
(at such email addresses as Administrative Borrower or Agent, as applicable, may
designate to each other in accordance herewith), or telefacsimile to Borrowers
in care of Administrative Borrower or to Agent, as the case may be, at its
address set forth below:

                  If to Administrative Borrower:   AMERCO

                                                   1325 Airmotive Way, Suite 100
                                                   Reno, Nevada  89502-3239
                                                   Attn: Assistant Treasurer
                                                   Fax No. 775.688.6338

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                  with copies to:                  U-HAUL INTERNATIONAL, INC.
                                                   2727 North Central
                                                   Phoenix, Arizona  85004
                                                   Attn: General Counsel
                                                   Fax No. 602.263.6173

                  with copies to:                  SQUIRE, SANDERS & DEMPSEY,
                                                   L.L.P.
                                                   Two Renaissance Square
                                                   40 North Central Avenue,
                                                   Suite 2700
                                                   Phoenix, Arizona  85004
                                                   Attn: Christopher D. Johnson,
                                                   Esq.
                                                   Fax No. 602.253.8129

                  If to Agent:                     WELLS FARGO FOOTHILL, INC.
                                                   2450 Colorado Avenue
                                                   Suite 3000W
                                                   Santa Monica, California
                                                   90404
                                                   Attn: Specialty Finance
                                                   Division Manager
                                                   Fax No. 310.453.7444

                  with copies to:                  PAUL, HASTINGS, JANOFSKY &
                                                       WALKER LLP

                                                   600 Peachtree Street, NE,
                                                   Suite 2400
                                                   Atlanta, Georgia  30308-2222
                                                   Attn: Chris D. Molen, Esq.
                                                         Cindy J.K. Davis, Esq.
                                                   Fax No. 404.815.2424

                  Agent and Borrowers may change the address at which they are
to receive notices hereunder, by notice in writing in the foregoing manner given
to the other party. All notices or demands sent in accordance with this Section
12, other than notices by Agent in connection with enforcement rights against
the Collateral under the provisions of the Code, shall be deemed received on the
earlier of the date of actual receipt or 3 Business Days after the deposit
thereof in the mail. Each Borrower acknowledges and agrees that notices sent by
the Lender Group in connection with the exercise of enforcement rights against
Collateral under the provisions of the Code shall be deemed sent when deposited
in the mail or personally delivered, or, where permitted by law, transmitted by
telefacsimile or any other method set forth above. Each member of the Lender
Group hereby acknowledges and agrees that (i) Agent may provide any notice to be
delivered to the Lender Group pursuant to this Agreement and the other Loan
Documents by posting such notice on IntraLinks or by sending such notice via
electronic mail (at such electronic mail address as such member of the Lender
Group may designate), and (ii) such posting or sending via electronic mail to
the Lender Group shall constitute delivery of such item to the Lender Group.

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13.      CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

                  (a)      THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN
RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND
ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND THERETO
WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR
THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS GOVERNED BY THE BANKRUPTCY CODE.

                  (b)      THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS
ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE
TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY
OF NEW YORK, STATE OF NEW YORK, EXCEPT TO THE EXTENT THE BANKRUPTCY COURT
RETAINS JURISDICTION WITH RESPECT TO THE REORGANIZATION PLAN; PROVIDED, HOWEVER,
THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY
BE BROUGHT, AT AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT
ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE
FOUND. BORROWERS AND THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER
APPLICABLE LAWS, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON
CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
ACCORDANCE WITH THIS SECTION 13(b).

                  (c)      BORROWERS AND THE LENDER GROUP HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED
THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL
OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWERS AND THE LENDER GROUP REPRESENT
THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF
LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A
TRIAL BY THE COURT.

14.      ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.

         14.1     ASSIGNMENTS AND PARTICIPATIONS.

                  (a)      Any Lender may, with the written consent of Agent
(provided that no written consent of Agent shall be required in connection with
any assignment and delegation by a Lender to an Eligible Transferee), assign and
delegate to one or more assignees (each an "Assignee") all, or any ratable part
of all, of the Obligations (other than Bank Product

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Obligations), the Commitments and the other rights and obligations of such
Lender hereunder and under the other Loan Documents, in a minimum amount of
$5,000,000 (except that such minimum amount shall not apply to an Affiliate of a
Lender or to a Related Fund or to an assignment of all of such Lender's rights
and obligations); provided, however, that Borrowers and Agent may continue to
deal solely and directly with such Lender in connection with the interest so
assigned to an Assignee until (i) written notice of such assignment, together
with payment instructions, addresses, and related information with respect to
the Assignee, have been given to Administrative Borrower and Agent by such
Lender and the Assignee, (ii) such Lender and its Assignee have delivered to
Administrative Borrower and Agent an Assignment and Acceptance in form and
substance reasonably satisfactory to Agent, and (iii) the assignor Lender or
Assignee has paid to Agent for Agent's separate account a processing fee in the
amount of $5,000. Anything contained herein to the contrary notwithstanding, the
consent of Agent shall not be required (and payment of any fees shall not be
required) if (x) such assignment is in connection with any merger,
consolidation, sale, transfer, or other disposition of all or any substantial
portion of the business or loan portfolio of such Lender or (y) the assignee is
an Affiliate (other than individual(s)) of a Lender or a Related Fund.
Furthermore, for the avoidance of doubt, any assignment or delegation of any
Bank Product Agreement may be effected by the parties thereto without the
consent of the Lender Group.

                  (b)      Subject to recordation in accordance with Section
14.1(h) below, from and after the date that Agent notifies the assignor Lender
(with a copy to Administrative Borrower) that it has received an executed
Assignment and Acceptance and payment of the above-referenced processing fee, as
applicable, (i) the Assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, shall have the rights and obligations of a
Lender under the Loan Documents, and (ii) the assignor Lender shall, to the
extent that rights and obligations hereunder and under the other Loan Documents
have been assigned by it pursuant to such Assignment and Acceptance, relinquish
its rights (except with respect to Section 11.3 hereof) and be released from its
obligations under this Agreement (and in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement and the other Loan Documents, such Lender
shall cease to be a party hereto and thereto), and such assignment shall effect
a novation between Borrowers and the Assignee; provided, however, that nothing
contained herein shall release any assigning Lender from obligations that
survive the termination of this Agreement, including such assigning Lender's
obligations under Section 16 and Section 17.8 of this Agreement.

                  (c)      By executing and delivering an Assignment and
Acceptance, the assigning Lender thereunder and the Assignee thereunder confirm
to and agree with each other and the other parties hereto as follows: (i) other
than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other Loan Document furnished
pursuant hereto, (ii) such assigning Lender makes no representation or warranty
and assumes no responsibility with respect to the financial condition of
Borrowers or the performance or observance by Borrowers of any of their
obligations under this Agreement or any other Loan Document furnished pursuant
hereto, (iii) such Assignee confirms that it has received a copy of this
Agreement, together with such other

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<PAGE>

documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance, (iv) such
Assignee will, independently and without reliance upon Agent, such assigning
Lender or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement, (v) such Assignee appoints and
authorizes Agent to take such actions and to exercise such powers under this
Agreement as are delegated to Agent, by the terms hereof, together with such
powers as are reasonably incidental thereto, and (vi) such Assignee agrees that
it will perform all of the obligations which by the terms of this Agreement are
required to be performed by it as a Lender.

                  (d)      Immediately upon each Assignee's making its
processing fee payment under the Assignment and Acceptance and receipt and
acknowledgment by Agent of such fully executed Assignment and Acceptance, this
Agreement shall be deemed to be amended to the extent, but only to the extent,
necessary to reflect the addition of the Assignee and the resulting adjustment
of the Commitments arising therefrom. The Commitment allocated to each Assignee
shall reduce such Commitments of the assigning Lender pro tanto.

                  (e)      Any Lender may at any time sell to one or more
commercial banks, financial institutions, or other Persons not Affiliates of
such Lender (a "Participant") participating interests in its Obligations, the
Commitment, and the other rights and interests of that Lender (the "Originating
Lender") hereunder and under the other Loan Documents; provided, however, that
(i) the Originating Lender shall remain a "Lender" for all purposes of this
Agreement and the other Loan Documents and the Participant receiving the
participating interest in the Obligations, the Commitments, and the other rights
and interests of the Originating Lender hereunder shall not constitute a
"Lender" hereunder or under the other Loan Documents and the Originating
Lender's obligations under this Agreement shall remain unchanged, (ii) the
Originating Lender shall remain solely responsible for the performance of such
obligations, (iii) Borrowers, Agent, and the Lenders shall continue to deal
solely and directly with the Originating Lender in connection with the
Originating Lender's rights and obligations under this Agreement and the other
Loan Documents, (iv) no Lender shall transfer or grant any participating
interest under which the Participant has the right to approve any amendment to,
or any consent or waiver with respect to, this Agreement or any other Loan
Document, except to the extent such amendment to, or consent or waiver with
respect to this Agreement or of any other Loan Document would (1) extend the
final maturity date of the Obligations hereunder in which such Participant is
participating, (2) reduce the interest rate applicable to the Obligations
hereunder in which such Participant is participating, (3) release all or
substantially all of the Collateral or guaranties (except to the extent
expressly provided herein or in any of the Loan Documents) supporting the
Obligations hereunder in which such Participant is participating, (4) postpone
the payment of, or reduce the amount of, the interest or fees payable to such
Participant through such Lender, or (5) change the amount or due dates of
scheduled principal repayments or prepayments or premiums, and (v) all amounts
payable by Borrowers hereunder shall be determined as if such Lender had not
sold such participation; except that, if amounts outstanding under this
Agreement are due and unpaid, or shall have been declared or shall have become
due and payable upon the occurrence of an Event of Default, each Participant
shall be deemed to have the right of set-off in respect of its participating
interest in amounts owing under this Agreement to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under
this Agreement. The rights of any Participant shall only be derivative

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through the Originating Lender with whom such Participant participates and no
Participant shall have any rights under this Agreement or the other Loan
Documents or any direct rights as to the other Lenders, Agent, Borrowers, the
Collections, the Collateral, or otherwise in respect of the Obligations. No
Participant shall have the right to participate directly in the making of
decisions by the Lenders among themselves.

                  (f)      Pursuant to Section 17.10, if any proposed assignee
or participant has agreed in writing to receive any documents or information
subject to the confidentiality provisions contained in this Agreement, in
connection with any such assignment or participation or proposed assignment or
participation, a Lender may disclose all documents and information which it now
or hereafter may have relating to Borrowers or Borrowers' business.

                  (g)      Any other provision in this Agreement
notwithstanding, any Lender (i) may at any time create a security interest in,
or pledge, all or any portion of its rights under and interest in this Agreement
in favor of any Federal Reserve Bank in accordance with Regulation A of the
Federal Reserve Bank or United States Treasury Regulation 31 C.F.R. SECTION
203.14, and such Federal Reserve Bank may enforce such pledge or security
interest in any manner permitted under Applicable Laws, and (ii) that is a Fund
may at any time create a security interest in, or pledge, all or any portion of
its rights under and interest in this Agreement to its trustee to support its
obligations to its trustee, on behalf of the holders of such obligations.

                  (h)      Subject to the last sentence of this Section 14.1(h),
Agent shall maintain, or cause to be maintained, a register (the "Register") on
which it enters the name of a Lender as the registered owner of each Advance, as
the case may be, held by such Lender. A Registered Loan (and the Registered
Note, if any, evidencing the same) may be assigned or sold in whole or in part
only by registration of such assignment or sale on the Register (and each
Registered Note shall expressly so provide). Subject to the last sentence of
this Section 14.1(h), any assignment or sale of all or part of such Registered
Loan (and the Registered Note, if any, evidencing the same) may be effected only
by registration of such assignment or sale on the Register, together with the
surrender of the Registered Note, if any, evidencing the same duly endorsed by
(or accompanied by a written instrument of assignment or sale duly executed by)
the holder of such Registered Note, whereupon, at the request of the designated
assignee(s) or transferee(s), one or more new Registered Notes in the same
aggregate principal amount shall be issued to the designated assignee(s) or
transferee(s). Prior to the registration of an assignment or sale of any
Registered Loan (and the Registered Note, if any, evidencing the same),
Borrowers, Agent and the Lenders shall treat the Person in whose name such
Registered Loan (and the Registered Note, if any, evidencing the same) is
registered as the owner thereof for the purpose of receiving all payments
thereon and for all other purposes, notwithstanding notice to the contrary. In
the case of an assignment or delegation covered by Section 14.1(a)(y), the
assigning Lender shall maintain a register comparable to the Register on behalf
of Agent.

                  (i)      In the event that a Lender sells participations in a
Registered Loan, such Lender shall maintain a register on which it enters the
name of all participants in the Registered Loans held by it (the "Participant
Register"). A Registered Loan (and the Registered Note, if any, evidencing the
same) may be participated in whole or in part only by registration of such
participation on the Participant Register (and each Registered Note shall
expressly so provide).

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Any participation of such Registered Loan (and the Registered Note, if any,
evidencing the same) may be effected only by the registration of such
participation on the Participant Register.

                  (j)      Notwithstanding any other provision hereof, the
Lenders hereby consent to any Lender's pledge (a "Pledge") of its interest in
the Obligations, the Commitment, and the other rights and interests of that
Lender (a "Loan Pledgor") to any Eligible Transferee that has extended a credit
facility to such Loan Pledgor (a "Loan Pledgee"), on the terms and conditions
set forth in this paragraph. Upon written notice by any Loan Pledgor to Agent
that the Pledge has been effected, Agent agrees to acknowledge receipt of such
notice and thereafter agrees: (a) to use its best efforts to give Loan Pledgee
written notice of any default by Loan Pledgor under this Agreement and any
amendment, modification, waiver or termination of Loan Pledgor's rights under
this Agreement; provided, however, Agent shall not have any liability to Loan
Pledgee if Agent fails to give such notice; (b) that Agent shall deliver, at the
expense of Loan Pledgor, to Loan Pledgee such information available to the
Lenders hereunder as Loan Pledgee shall reasonably request; and (c) that, upon
written notice (a "Redirection Notice") to Agent by Loan Pledgee that Loan
Pledgor is in default, beyond applicable cure periods, under Loan Pledgor's
obligations to Loan Pledgee pursuant to the applicable credit agreement between
Loan Pledgor and Loan Pledgee (which notice need not be joined in or confirmed
by all Lenders), and until such Redirection Notice is withdrawn or rescinded by
Loan Pledgee, any payments to which Loan Pledgor is entitled from time to time
pursuant to this Agreement, or any other Loan Document, shall be paid or
directed to Loan Pledgee. The relevant Loan Pledgor hereby unconditionally and
absolutely releases Agent and the other Lenders from any liability to the such
Loan Pledgor on account of Agent's or any Lender's compliance with any
Redirection Notice reasonably believed by Agent or the Lenders to have been
delivered in good faith. Loan Pledgee shall be permitted fully to exercise its
rights and remedies against the relevant Loan Pledgor, and realize on any and
all collateral granted by such Loan Pledgor to Loan Pledgee (and accept an
assignment in lieu of foreclosure as to such collateral), in accordance with
Applicable Laws and the provisions of this Agreement. In such event, Agent and
the Lenders shall recognize Loan Pledgee, and its successors and assigns that
are Eligible Transferees, as the successor to the applicable Loan Pledgor's
rights, remedies and obligations under this Agreement and the Loan Documents.
The rights of Loan Pledgee under this paragraph shall remain effective unless
and until such Loan Pledgee shall have notified Agent in writing that its
interest in the Obligations, the Commitment, and the other rights and interests
of the relevant Loan Pledgor has terminated.

         14.2     SUCCESSORS. This Agreement shall bind and inure to the benefit
of the respective successors and assigns of each of the parties hereto
including, with respect to each Borrower, the estate of such Borrower, any
trustee or successor-in-interest in an Insolvency Proceeding; provided, however,
that Borrowers may not assign this Agreement or any rights or duties hereunder
without the Lenders' prior written consent and any prohibited assignment shall
be absolutely void ab initio. No consent to assignment by the Lenders shall
release any Borrower from its Obligations. A Lender may assign this Agreement
and the other Loan Documents and its rights and duties hereunder and thereunder
pursuant to Section 14.1 hereof and, except as expressly required pursuant to
Section 14.1 hereof, no consent or approval by any Borrower is required in
connection with any such assignment.

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15.      AMENDMENTS; WAIVERS.

         15.1     AMENDMENTS AND WAIVERS. No amendment or waiver of any
provision of this Agreement or any other Loan Document, and no consent with
respect to any departure by Borrowers therefrom, shall be effective unless the
same shall be in writing and signed by the Required Lenders (or by Agent at the
written request of the Required Lenders) and Administrative Borrower (on behalf
of all Borrowers) and then any such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given; provided,
however, that no such waiver, amendment, or consent shall, unless in writing and
signed by all of the Lenders affected thereby and Administrative Borrower (on
behalf of all Borrowers) and acknowledged by Agent, do any of the following:

                  (a)      increase or extend any Commitment of any Lender,

                  (b)      postpone or delay any date fixed by this Agreement or
any other Loan Document for any payment of principal, interest, fees, or other
amounts due hereunder or under any other Loan Document,

                  (c)      reduce the principal of, or the rate of interest on,
any loan or other extension of credit hereunder, or reduce any fees or other
amounts payable hereunder or under any other Loan Document,

                  (d)      change the percentage of the Commitments that is
required to take any action hereunder, (e) amend, modify or waive this Section
or any provision of the Agreement providing for consent or other action by all
Lenders,

                  (f)      release Collateral other than as permitted by Section
16.12,

                  (g)      change the definition of "Required Lenders" or "Pro
Rata Share",

                  (h)      contractually subordinate any of the Agent's Liens,

                  (i)      release any Borrower or any material Guarantor from
any obligation for the payment of money,

                  (j)      change the definitions of Availability, Bank Product
Reserves, Borrowing Base, Fair Market Valuation, Maximum Revolver Amount, or
Term Loan Amount or amend, modify or waive any of the provisions of Section
2.1(a), Section 2.1(b), Section 2.2, Section 2.3(e), Section 2.3(i), Section
2.4(b) or Section 2.5, or

                  (k)      amend, modify or waive any of the provisions of
Section 16.

and, provided further, however, that no amendment, waiver or consent shall,
unless in writing and signed by Agent, Issuing Lender, or Swing Lender, affect
the rights or duties of Agent, Issuing Lender, or Swing Lender, as applicable,
under this Agreement or any other Loan Document. The foregoing notwithstanding,
any amendment, modification, waiver, consent,

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termination, or release of, or with respect to, any provision of this Agreement
or any other Loan Document that relates only to the relationship of the Lender
Group among themselves, and that does not affect the rights or obligations of
Borrowers, shall not require consent by or the agreement of Borrowers.
Furthermore, for the avoidance of doubt, any amendment, modification, waiver,
consent, termination, or release of, or with respect to, any provision of any
Bank Product Agreement may be effected by the parties thereto without the
consent of the Lender Group.

         15.2     REPLACEMENT OF HOLDOUT LENDER. If any action to be taken by
the Lender Group or Agent hereunder requires the unanimous consent,
authorization, or agreement of all Lenders, and a Lender ("Holdout Lender")
fails to give its consent, authorization, or agreement, then Agent, upon at
least 5 Business Days prior irrevocable notice to the Holdout Lender, may
permanently replace the Holdout Lender with one or more substitute Lenders
(each, a "Replacement Lender"), and the Holdout Lender shall have no right to
refuse to be replaced hereunder. Such notice to replace the Holdout Lender shall
specify an effective date for such replacement, which date shall not be later
than 15 Business Days after the date such notice is given.

                  Prior to the effective date of such replacement, the Holdout
Lender and each Replacement Lender shall execute and deliver an Assignment and
Acceptance Agreement, subject only to the Holdout Lender's being repaid its
share of the outstanding Obligations (including an assumption of its Pro Rata
Share of the Risk Participation Liability) without any premium or penalty of any
kind whatsoever. If the Holdout Lender shall refuse or fail to execute and
deliver any such Assignment and Acceptance Agreement prior to the effective date
of such replacement, the Holdout Lender shall be deemed to have executed and
delivered such Assignment and Acceptance Agreement. The replacement of any
Holdout Lender shall be made in accordance with the terms of Section 14.1. Until
such time as the Replacement Lenders shall have acquired all of the Obligations,
the Commitments, and the other rights and obligations of the Holdout Lender
hereunder and under the other Loan Documents, the Holdout Lender shall remain
obligated to make the Holdout Lender's Pro Rata Share of Advances and to
purchase a participation in each Letter of Credit, in an amount equal to its Pro
Rata Share of the Risk Participation Liability of such Letter of Credit.

         15.3     NO WAIVERS; CUMULATIVE REMEDIES. No failure by Agent or any
Lender to exercise any right, remedy, or option under this Agreement or any
other Loan Document, or delay by Agent or any Lender in exercising the same,
will operate as a waiver thereof. No waiver by Agent or any Lender will be
effective unless it is in writing, and then only to the extent specifically
stated. No waiver by Agent or any Lender on any occasion shall affect or
diminish Agent's and each Lender's rights thereafter to require strict
performance by Borrowers of any provision of this Agreement. Agent's and each
Lender's rights under this Agreement and the other Loan Documents will be
cumulative and not exclusive of any other right or remedy that Agent or any
Lender may have.

         15.4     WP CAREY TRANSACTION. Each Loan Party, each Lender and Agent
hereby stipulate and agree that in the event the Required Lenders approve the
terms and conditions of any transaction constituting the WP Carey Transaction,
any special purpose entity formed by a Loan Party after the Closing Date solely
for the purpose of consummating such WP Carey

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Transaction, as approved, shall not be subject to the representations,
warranties and covenants in this Agreement and the other Loan Documents.

16.      AGENT; THE LENDER GROUP.

         16.1     APPOINTMENT AND AUTHORIZATION OF AGENT. Each Lender hereby
designates and appoints Foothill as its representative under this Agreement and
the other Loan Documents (other than the Bank Product Agreements) and each
Lender hereby irrevocably authorizes Agent to execute and deliver each of the
other Loan Documents (other than the Bank Product Agreements) on its behalf and
to take such other action on its behalf under the provisions of this Agreement
and each other Loan Document (other than the Bank Product Agreements) and to
exercise such powers and perform such duties as are expressly delegated to Agent
by the terms of this Agreement or any other Loan Document, together with such
powers as are reasonably incidental thereto. Agent agrees to act as such on the
express conditions contained in this Section 16. The provisions of this Section
16 are solely for the benefit of Agent, and the Lenders, and Borrowers shall
have no rights as a third party beneficiary of any of the provisions contained
herein. Any provision to the contrary contained elsewhere in this Agreement or
in any other Loan Document notwithstanding, Agent shall not have any duties or
responsibilities, except those expressly set forth herein, nor shall Agent have
or be deemed to have any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or any other Loan Document or otherwise exist
against Agent; it being expressly understood and agreed that the use of the word
"Agent" is for convenience only, that Foothill is merely the representative of
the Lenders, and only has the contractual duties set forth herein. Except as
expressly otherwise provided in this Agreement, Agent shall have and may use its
sole discretion with respect to exercising or refraining from exercising any
discretionary rights or taking or refraining from taking any actions that Agent
expressly is entitled to take or assert under or pursuant to this Agreement and
the other Loan Documents. Without limiting the generality of the foregoing, or
of any other provision of the Loan Documents that provides rights or powers to
Agent, Lenders agree that Agent shall have the right to exercise the following
powers as long as this Agreement remains in effect: (a) maintain, in accordance
with its customary business practices, ledgers and records reflecting the status
of the Obligations, the Collateral, the Collections, and related matters, (b)
execute or file any and all financing or similar statements or notices,
amendments, renewals, supplements, documents, instruments, proofs of claim,
notices and other written agreements with respect to the Loan Documents, (c)
make Advances, for itself or on behalf of Lenders as provided in the Loan
Documents, (d) exclusively receive, apply, and distribute the Collections as
provided in the Loan Documents, (e) open and maintain such bank accounts and
cash management accounts as Agent deems necessary and appropriate in accordance
with the Loan Documents for the foregoing purposes with respect to the
Collateral and the Collections, (f) perform, exercise, and enforce any and all
other rights and remedies of the Lender Group with respect to Borrowers, the
Obligations, the Collateral, the Collections, or otherwise related to any of
same as provided in the Loan Documents, and (g) incur and pay such Lender Group
Expenses as Agent may deem necessary or appropriate for the performance and
fulfillment of its functions and powers pursuant to the Loan Documents.

         16.2     DELEGATION OF DUTIES. Agent may execute any of its duties
under this Agreement or any other Loan Document by or through agents, employees
or attorneys-in-fact and shall be

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entitled to advice of counsel concerning all matters pertaining to such duties.
Agent shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects as long as such selection was made without
gross negligence or willful misconduct.

         16.3     LIABILITY OF AGENT. None of the Agent-Related Persons shall
(i) be liable for any action taken or omitted to be taken by any of them under
or in connection with this Agreement or any other Loan Document or the
transactions contemplated hereby (except for its own gross negligence or willful
misconduct), or (ii) be responsible in any manner to any of the Lenders for any
recital, statement, representation or warranty made by any Borrower or any
Subsidiary or Affiliate of any Borrower, or any officer or director thereof,
contained in this Agreement or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for in,
or received by Agent under or in connection with, this Agreement or any other
Loan Document, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document, or for any failure of
any Borrower or any other party to any Loan Document to perform its obligations
hereunder or thereunder. No Agent-Related Person shall be under any obligation
to any Lender to ascertain or to inquire as to the observance or performance of
any of the agreements contained in, or conditions of, this Agreement or any
other Loan Document, or to inspect the Books or properties of Borrowers or the
books or records or properties of any of Borrowers' Subsidiaries or Affiliates.

         16.4     RELIANCE BY AGENT. Agent shall be entitled to rely, and shall
be fully protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement or other document or conversation believed by it to be genuine and
correct and to have been signed, sent, or made by the proper Person or Persons,
and upon advice and statements of legal counsel (including counsel to Borrowers
or counsel to any Lender), independent accountants and other experts selected by
Agent. Agent shall be fully justified in failing or refusing to take any action
under this Agreement or any other Loan Document unless Agent shall first receive
such advice or concurrence of the Lenders as it deems appropriate and until such
instructions are received, Agent shall act, or refrain from acting, as it deems
advisable. If Agent so requests, it shall first be indemnified to its reasonable
satisfaction by Lenders against any and all liability and expense that may be
incurred by it by reason of taking or continuing to take any such action. Agent
shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement or any other Loan Document in accordance with a request or
consent of the requisite Lenders and such request and any action taken or
failure to act pursuant thereto shall be binding upon all of the Lenders.

         16.5     NOTICE OF DEFAULT OR EVENT OF DEFAULT. Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of
Default, except with respect to defaults in the payment of principal, interest,
fees, and expenses required to be paid to Agent for the account of the Lenders,
except with respect to Defaults and Events of Default of which Agent has actual
knowledge, unless Agent shall have received written notice from a Lender or
Administrative Borrower referring to this Agreement, describing such Default or
Event of Default, and stating that such notice is a "notice of default." Agent
promptly will notify the Lenders of its receipt of any such notice or of any
Event of Default of which Agent has actual knowledge. If any Lender obtains
actual knowledge of any Event of Default, such Lender promptly shall notify the
other Lenders and Agent of such Event of Default. Each Lender shall be solely
responsible for giving any notices to its Participants, if any. Subject to
Section 16.4,

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Agent shall take such action with respect to such Default or Event of Default as
may be requested by the Required Lenders in accordance with Section 9; provided,
however, that unless and until Agent has received any such request, Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Default or Event of Default as it shall deem
advisable.

         16.6     CREDIT DECISION. Each Lender acknowledges that none of the
Agent-Related Persons has made any representation or warranty to it, and that no
act by Agent hereinafter taken, including any review of the affairs of Borrowers
and their Subsidiaries or Affiliates, shall be deemed to constitute any
representation or warranty by any Agent-Related Person to any Lender. Each
Lender represents to Agent that it has, independently and without reliance upon
any Agent-Related Person and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and
creditworthiness of Borrowers and any other Person party to a Loan Document, and
all applicable bank regulatory laws relating to the transactions contemplated
hereby, and made its own decision to enter into this Agreement and to extend
credit to Borrowers. Each Lender also represents that it will, independently and
without reliance upon any Agent-Related Person and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigations as
it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of Borrowers and
any other Person party to a Loan Document. Except for notices, reports, and
other documents expressly herein required to be furnished to the Lenders by
Agent, Agent shall not have any duty or responsibility to provide any Lender
with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of
Borrowers and any other Person party to a Loan Document that may come into the
possession of any of the Agent-Related Persons.

         16.7     COSTS AND EXPENSES; INDEMNIFICATION. Agent may incur and pay
Lender Group Expenses to the extent Agent reasonably deems necessary or
appropriate for the performance and fulfillment of its functions, powers, and
obligations pursuant to the Loan Documents, including court costs, reasonable
attorneys' fees and expenses, fees and expenses of financial accountants,
advisors, consultants and appraisers, costs of collection by outside collection
agencies and auctioneer fees and expenses and costs of security guards or
insurance premiums paid to maintain the Collateral, whether or not Borrowers are
obligated to reimburse Agent or Lenders for such expenses pursuant to the Loan
Agreement or otherwise. Agent is authorized and directed to deduct and retain
sufficient amounts from Collections received by Agent to reimburse Agent for
such out-of-pocket costs and expenses prior to the distribution of any amounts
to Lenders. In the event Agent is not reimbursed for such costs and expenses
from Collections received by Agent, each Lender hereby agrees that it is and
shall be obligated to pay to or reimburse Agent for the amount of such Lender's
Pro Rata Share thereof. Whether or not the transactions contemplated hereby are
consummated, the Lenders shall indemnify upon demand the Agent-Related Persons
(to the extent not reimbursed by or on behalf of Borrowers and without limiting
the obligation of Borrowers to do so), according to their Pro Rata Shares, from
and against any and all Indemnified Liabilities; provided, however, that no
Lender shall be liable for the payment to any Agent-Related Person of any
portion of such Indemnified Liabilities

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resulting solely from such Person's gross negligence or willful misconduct nor
shall any Lender be liable for the obligations of any Defaulting Lender in
failing to make an Advance or other extension of credit hereunder. Without
limitation of the foregoing, each Lender shall reimburse Agent upon demand for
such Lender's Pro Rata Share of any costs or out-of-pocket expenses (including
attorneys fees and expenses) incurred by Agent in connection with the
preparation, execution, delivery, administration, modification, amendment, or
enforcement (whether through negotiations, legal proceedings or otherwise) of,
or legal advice in respect of rights or responsibilities under, this Agreement,
any other Loan Document, or any document contemplated by or referred to herein,
to the extent that Agent is not reimbursed for such expenses by or on behalf of
Borrowers. The undertaking in this Section shall survive the payment of all
Obligations hereunder and the resignation or replacement of Agent.

         16.8     AGENT IN INDIVIDUAL CAPACITY. The Lenders hereby acknowledge
and agree that Foothill and its Affiliates may make loans to (including, without
limitation, pursuant to the Term Loan B Note Documents), issue letters of credit
for the account of, accept deposits from, acquire equity interests in, and
generally engage in any kind of banking, trust, financial advisory,
underwriting, or other business with Borrowers and their Subsidiaries and
Affiliates and any other Person party to any Loan Documents as though Foothill
were not Agent hereunder, and, in each case, without notice to or consent of the
other members of the Lender Group. The other members of the Lender Group
acknowledge that, pursuant to such activities, Foothill or its Affiliates may
receive information regarding Borrowers or their Affiliates and any other Person
party to any Loan Documents that is subject to confidentiality obligations in
favor of Borrowers or such other Person and that prohibit the disclosure of such
information to the Lenders, and the Lenders acknowledge that, in such
circumstances (and in the absence of a waiver of such confidentiality
obligations, which waiver Agent will use its reasonable best efforts to obtain),
Agent shall not be under any obligation to provide such information to them. The
terms "Lender" and "Lenders" include Foothill in its individual capacity.

         16.9     SUCCESSOR AGENT. Agent may resign as Agent upon 45 days'
notice to the Lenders (and at least 15 days notice to Administrative Borrower).
If Agent resigns under this Agreement, the Required Lenders shall appoint a
successor Agent for the Lenders. If no successor Agent is appointed prior to the
effective date of the resignation of Agent, Agent may appoint, after consulting
with the Lenders, a successor Agent. If Agent has materially breached or failed
to perform any material provision of this Agreement or of Applicable Laws, the
Required Lenders may agree in writing to remove and replace Agent with a
successor Agent from among the Lenders. In any such event, upon the acceptance
of its appointment as successor Agent hereunder, such successor Agent shall
succeed to all the rights, powers, and duties of the retiring Agent and the term
"Agent" shall mean such successor Agent and the retiring Agent's appointment,
powers, and duties as Agent shall be terminated. After any retiring Agent's
resignation hereunder as Agent, the provisions of this Section 16 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement. If no successor Agent has accepted appointment as
Agent by the date which is 45 days following a retiring Agent's notice of
resignation, the retiring Agent's resignation shall nevertheless thereupon
become effective and the Lenders shall perform all of the duties of Agent
hereunder until such time, if any, as the Lenders appoint a successor Agent as
provided for above.

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         16.10    LENDER IN INDIVIDUAL CAPACITY. Any Lender and its respective
Affiliates may make loans to, issue letters of credit for the account of, accept
deposits from, acquire equity interests in and generally engage in any kind of
banking, trust, financial advisory, underwriting or other business with
Borrowers and their Subsidiaries and Affiliates and any other Person party to
any Loan Documents as though such Lender were not a Lender hereunder without
notice to or consent of the other members of the Lender Group. The other members
of the Lender Group acknowledge that, pursuant to such activities, such Lender
and its respective Affiliates may receive information regarding Borrowers or
their Affiliates and any other Person (other than the Lender Group) party to any
Loan Documents that is subject to confidentiality obligations in favor of
Borrowers or such other Person and that prohibit the disclosure of such
information to the Lenders, and the Lenders acknowledge that, in such
circumstances (and in the absence of a waiver of such confidentiality
obligations, which waiver such Lender will use its reasonable best efforts to
obtain), such Lender not shall be under any obligation to provide such
information to them. With respect to the Swing Loans and Agent Advances, Swing
Lender shall have the same rights and powers under this Agreement as any other
Lender and may exercise the same as though it were not the sub-agent of the
Agent.

         16.11    WITHHOLDING TAXES.

                  (a)      If any Lender is a "foreign person" within the
meaning of the IRC and such Lender claims exemption from, or a reduction of,
United States withholding tax under Sections 1441 or 1442 of the IRC, such
Lender agrees with and in favor of Agent and Borrowers, to deliver to Agent and
Administrative Borrower:

                           (i)      if such Lender claims an exemption from
                  withholding tax pursuant to its portfolio interest exception,
                  (1) a statement of the Lender, signed under penalty of
                  perjury, that it is not a (A) a "bank" as described in Section
                  881(c)(3)(A) of the IRC, (B) a 10% shareholder of a Borrower
                  (within the meaning of Section 871(h)(3)(B) of the IRC), or
                  (C) a controlled foreign corporation related to a Borrower
                  within the meaning of 864(d)(4) of the IRC, and (2) a properly
                  completed and executed IRS Form W-8BEN, before the first
                  payment of any interest under this Agreement and at any other
                  time reasonably requested by Agent or Administrative Borrower;

                           (ii)     if such Lender claims an exemption from, or
                  a reduction of, withholding tax under a United States tax
                  treaty, properly completed and executed IRS Form W-8BEN before
                  the first payment of any interest under this Agreement and at
                  any other time reasonably requested by Agent or Administrative
                  Borrower;

                           (iii)    if such Lender claims that interest paid
                  under this Agreement is exempt from United States withholding
                  tax because it is effectively connected with a United States
                  trade or business of such Lender, two properly completed and
                  executed copies of IRS Form W-8ECI before the first payment of
                  any interest is due under this Agreement and at any other time
                  reasonably requested by Agent or Administrative Borrower; and

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                           (iv)     such other form or forms as may be required
                  under the IRC or other laws of the United States as a
                  condition to exemption from, or reduction of, United States
                  withholding tax.

Such Lender agrees promptly to notify Agent and Administrative Borrower of any
change in circumstances which would modify or render invalid any claimed
exemption or reduction.

                  (b)      If any Lender claims exemption from, or reduction of,
withholding tax under a United States tax treaty by providing IRS Form W-8BEN
and such Lender sells, assigns, grants a participation in, or otherwise
transfers all or part of the Obligations of Borrowers to such Lender, such
Lender agrees to notify Agent of the percentage amount in which it is no longer
the beneficial owner of Obligations of Borrowers to such Lender. To the extent
of such percentage amount, Agent will treat such Lender's IRS Form W-8BEN as no
longer valid.

                  (c)      If any Lender is entitled to a reduction in the
applicable withholding tax, Agent may withhold from any interest payment to such
Lender an amount equivalent to the applicable withholding tax after taking into
account such reduction. If the forms or other documentation required by
subsection (a) of this Section are not delivered to Agent, then Agent may
withhold from any interest payment to such Lender not providing such forms or
other documentation an amount equivalent to the applicable withholding tax.

                  (d)      If the IRS or any other Governmental Authority of the
United States or other jurisdiction asserts a claim that Agent did not properly
withhold tax from amounts paid to or for the account of any Lender (because the
appropriate form was not delivered, was not properly executed, or because such
Lender failed to notify Agent of a change in circumstances which rendered the
exemption from, or reduction of, withholding tax ineffective, or for any other
reason) such Lender shall indemnify and hold Agent harmless for all amounts
paid, directly or indirectly, by Agent as tax or otherwise, including penalties
and interest, and including any taxes imposed by any jurisdiction on the amounts
payable to Agent under this Section, together with all costs and expenses
(including attorneys fees and expenses). The obligation of the Lenders under
this subsection shall survive the payment of all Obligations and the resignation
or replacement of Agent.

                  (e)      All payments made by Borrowers hereunder or under any
note or other Loan Document will be made without setoff, counterclaim, or other
defense, except as required by Applicable Laws other than for Taxes (as defined
below). All such payments will be made free and clear of, and without deduction
or withholding for, any present or future taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature now or hereafter imposed by any
jurisdiction (other than the United States) or by any political subdivision or
taxing authority thereof or therein (other than of the United States) with
respect to such payments (but excluding, any tax imposed by any jurisdiction or
by any political subdivision or taxing authority thereof or therein (i) measured
by or based on the net income or net profits of a Lender, or (ii) to the extent
that such tax results from a change in the circumstances of the Lender,
including a change in the residence, place of organization, or principal place
of business of the Lender, or a change in the branch or lending office of the
Lender participating in the transactions set forth herein) and all interest,
penalties or similar liabilities with respect thereto (all such non-excluded
taxes, levies, imposts, duties, fees, assessments or other charges being
referred to collectively as

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"Taxes"). If any Taxes are so levied or imposed, each Borrower agrees to pay the
full amount of such Taxes, and such additional amounts as may be necessary so
that every payment of all amounts due under this Agreement or under any note,
including any amount paid pursuant to this Section 16.11(e) after withholding or
deduction for or on account of any Taxes, will not be less than the amount
provided for herein; provided, however, that Borrowers shall not be required to
increase any such amounts payable to Agent or any Lender (i) that is not
organized under the laws of the United States, if such Person fails to comply
with the other requirements of this Section 16.11, or (ii) if the increase in
such amount payable results from Agent's or such Lender's own willful misconduct
or gross negligence. Borrowers will furnish to Agent as promptly as possible
after the date the payment of any Taxes is due pursuant to Applicable Laws
certified copies of tax receipts evidencing such payment by Borrowers.

         16.12    COLLATERAL MATTERS.

                  (a)      The Lenders hereby irrevocably authorize Agent, at
its option and in its sole discretion, to release any Lien on any Collateral (i)
upon the termination of the Commitments and payment and satisfaction in full by
Borrowers of all Obligations, (ii) constituting property being sold or disposed
of if a release is required or desirable in connection therewith and if
Administrative Borrower certifies to Agent that the sale or disposition is
permitted under Section 7.4 of this Agreement or the other Loan Documents (and
Agent may rely conclusively on any such certificate, without further inquiry),
(iii) constituting property in which no Borrower and its Subsidiaries owned any
interest at the time the Agent's Lien was granted or at any time thereafter, or
(iv) constituting property leased to a Borrower and its Subsidiaries under a
lease that has expired or is terminated in a transaction permitted under this
Agreement. Except as provided above, Agent will not execute and deliver a
release of any Lien on any Collateral without the prior written authorization of
(y) if the release is of all or any substantial portion of the Collateral (which
shall be deemed to include sales or other dispositions of Collateral with a Fair
Market Valuation in excess of $35,000,000 over the Fair Market Valuation of the
Collateral that may be sold or otherwise disposed of under Section 7.4 hereof),
all of the Lenders, or (z) otherwise, the Required Lenders. Upon request by
Agent or Administrative Borrower at any time, the Lenders will confirm in
writing Agent's authority to release any such Liens on particular types or items
of Collateral pursuant to this Section 16.12; provided, however, that (1) Agent
shall not be required to execute any document necessary to evidence such release
on terms that, in Agent's opinion, would expose Agent to liability or create any
obligation or entail any consequence other than the release of such Lien without
recourse, representation, or warranty, and (2) such release shall not in any
manner discharge, affect, or impair the Obligations or any Liens (other than
those expressly being released) upon (or obligations of Borrowers in respect of)
all interests retained by Borrowers, including, the proceeds of any sale, all of
which shall continue to constitute part of the Collateral.

                  (b)      Agent shall have no obligation whatsoever to any of
the Lenders to assure that the Collateral exists or is owned by Borrowers or
Guarantors or is cared for, protected, or insured or has been encumbered, or
that the Agent's Liens have been properly or sufficiently or lawfully created,
perfected, protected, or enforced or are entitled to any particular priority, or
to exercise at all or in any particular manner or under any duty of care,
disclosure or fidelity, or to continue exercising, any of the rights,
authorities and powers granted or available to Agent pursuant to any of the Loan
Documents, it being understood and agreed that in respect of the

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Collateral, or any act, omission, or event related thereto, subject to the terms
and conditions contained herein, Agent may act in any manner it may deem
appropriate, in its sole discretion given Agent's own interest in the Collateral
in its capacity as one of the Lenders and that Agent shall have no other duty or
liability whatsoever to any Lender as to any of the foregoing, except as
otherwise provided herein.

                  (c)      Notwithstanding any provision in the Loan Documents
to the contrary, the Lenders hereby irrevocably authorize Agent, and Agent
hereby agrees that it shall, upon the written request of Administrative
Borrower, execute, have acknowledged as appropriate, and deliver to
Administrative Borrower such release documents as are reasonably necessary or
appropriate under the circumstances to effect the release of any Collateral to
the extent the sale of such Collateral is permitted under this Agreement. Agent
shall deliver any such release documents to Administrative Borrower (or, if
applicable, any closing attorney) to hold in escrow pending the closing of the
related transaction. In the event the closing of such transaction does not
occur, Administrative Borrower shall promptly return to Agent the release
documents executed and delivered by Agent.

         16.13    RESTRICTIONS ON ACTIONS BY LENDERS; SHARING OF PAYMENTS.

                  (a)      Each of the Lenders agrees that it shall not, without
the express written consent of Agent, and that it shall, to the extent it is
lawfully entitled to do so, upon the written request of Agent, set off against
the Obligations, any amounts owing by such Lender to Borrowers or any Deposit
Accounts of Borrowers now or hereafter maintained with such Lender. Each of the
Lenders further agrees that it shall not, unless specifically requested to do so
in writing by Agent, take or cause to be taken any action, including, the
commencement of any legal or equitable proceedings, to foreclose any Lien on, or
otherwise enforce any security interest in, any of the Collateral.

                  (b)      If, at any time or times any Lender shall receive (i)
by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral or any
payments with respect to the Obligations, except for any such proceeds or
payments received by such Lender from Agent pursuant to the terms of this
Agreement, or (ii) payments from Agent in excess of such Lender's Pro Rata Share
of all such distributions by Agent, such Lender promptly shall (1) turn the same
over to Agent, in kind, and with such endorsements as may be required to
negotiate the same to Agent, or in immediately available funds, as applicable,
for the account of all of the Lenders and for application to the Obligations in
accordance with the applicable provisions of this Agreement, or (2) purchase,
without recourse or warranty, an undivided interest and participation in the
Obligations owed to the other Lenders so that such excess payment received shall
be applied ratably as among the Lenders in accordance with their Pro Rata
Shares; provided, however, that if all or part of such excess payment received
by the purchasing party is thereafter recovered from it, those purchases of
participations shall be rescinded in whole or in part, as applicable, and the
applicable portion of the purchase price paid therefor shall be returned to such
purchasing party, but without interest except to the extent that such purchasing
party is required to pay interest in connection with the recovery of the excess
payment.

         16.14    AGENCY FOR PERFECTION. Agent hereby appoints each other Lender
as its agent (and each Lender hereby accepts such appointment) for the purpose
of perfecting the Agent's

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Liens in assets which, in accordance with Article 9 of the Code can be perfected
only by possession or control. Should any Lender obtain possession or control of
any such Collateral, such Lender shall notify Agent thereof, and, promptly upon
Agent's request therefor shall deliver possession or control of such Collateral
to Agent or in accordance with Agent's instructions.

         16.15    PAYMENTS BY AGENT TO THE LENDERS. All payments to be made by
Agent to the Lenders shall be made by bank wire transfer or internal transfer of
immediately available funds pursuant to such wire transfer instructions as each
party may designate for itself by written notice to Agent. Concurrently with
each such payment, Agent shall identify whether such payment (or any portion
thereof) represents principal, premium, or interest of the Obligations.

         16.16    CONCERNING THE COLLATERAL AND RELATED LOAN DOCUMENTS. Each
member of the Lender Group authorizes and directs Agent to enter into this
Agreement and the other Loan Documents relating to the Collateral, for the
benefit of the Lender Group and the Bank Product Providers. Each member of the
Lender Group agrees that any action taken by Agent in accordance with the terms
of this Agreement or the other Loan Documents relating to the Collateral and the
exercise by Agent of its powers set forth therein or herein, together with such
other powers that are reasonably incidental thereto, shall be binding upon all
of the Lenders.

         16.17    FIELD AUDITS AND EXAMINATION REPORTS; CONFIDENTIALITY;
DISCLAIMERS BY LENDERS; OTHER REPORTS AND INFORMATION. By becoming a party to
this Agreement, each Lender:

                  (a)      is deemed to have requested that Agent furnish such
Lender, promptly after it becomes available, a copy of each field audit or
examination report (each a "Report" and collectively, "Reports") prepared by or
at the request of Agent, and Agent shall so furnish each Lender with such
Reports,

                  (b)      expressly agrees and acknowledges that Agent does not
(i) make any representation or warranty as to the accuracy of any Report, and
(ii) shall not be liable for any information contained in any Report,

                  (c)      expressly agrees and acknowledges that the Reports
are not comprehensive audits or examinations, that Agent or other party
performing any audit or examination will inspect only specific information
regarding Borrowers and will rely significantly upon Loan Parties' Books, as
well as on representations of Borrowers' personnel,

                  (d)      agrees to keep all Reports and other material,
non-public information regarding Borrowers and their Subsidiaries and their
operations, assets, and existing and contemplated business plans in a
confidential manner in accordance with Section 17.10, and

                  (e)      without limiting the generality of any other
indemnification provision contained in this Agreement, agrees: (i) to hold Agent
and any such other Lender preparing a Report harmless from any action the
indemnifying Lender may take or conclusion the indemnifying Lender may reach or
draw from any Report in connection with any loans or other credit accommodations
that the indemnifying Lender has made or may make to Borrowers, or the
indemnifying Lender's participation in, or the indemnifying Lender's purchase
of, a loan or loans of Borrowers; and (ii) to pay and protect, and indemnify,
defend and hold Agent, and any

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such other Lender preparing a Report harmless from and against, the claims,
actions, proceedings, damages, costs, expenses, and other amounts (including,
attorneys' fees and costs) incurred by Agent and any such other Lender preparing
a Report as the direct or indirect result of any third parties who might obtain
all or part of any Report through the indemnifying Lender.

In addition to the foregoing: (x) any Lender may from time to time request in
writing that Agent provide to such Lender a copy of any report or document
provided by Borrowers to Agent that has not been contemporaneously provided by
Borrowers to such Lender, and, upon receipt of such request, Agent shall provide
a copy of same to such Lender, (y) to the extent that Agent is entitled, under
any provision of the Loan Documents, to request additional reports or
information from Borrowers, any Lender may, from time to time, reasonably
request Agent to exercise such right as specified in such Lender's notice to
Agent, whereupon Agent promptly shall request of Administrative Borrower the
additional reports or information reasonably specified by such Lender, and, upon
receipt thereof from Administrative Borrower, Agent promptly shall provide a
copy of same to such Lender, and (z) any time that Agent renders to
Administrative Borrower a statement regarding the Loan Account, Agent shall send
a copy of such statement to each Lender.

         16.18    SEVERAL OBLIGATIONS; NO LIABILITY. Notwithstanding that
certain of the Loan Documents now or hereafter may have been or will be executed
only by or in favor of Agent in its capacity as such, and not by or in favor of
the Lenders, any and all obligations on the part of Agent (if any) or any Lender
to make any credit available hereunder shall constitute the several (and not
joint) obligations of the respective Lenders on a ratable basis, according to
their respective Commitments, to make an amount of such credit not to exceed, in
principal amount, at any one time outstanding, the amount of their respective
Commitments. Nothing contained herein shall confer upon any Lender any interest
in, or subject any Lender to any liability for, or in respect of, the business,
assets, profits, losses, or liabilities of any other Lender. Each Lender shall
be solely responsible for notifying its Participants of any matters relating to
the Loan Documents to the extent any such notice may be required, and no Lender
shall have any obligation, duty, or liability to any Participant of any other
Lender. Except as provided in Section 16.7, no member of the Lender Group shall
have any liability for the acts or any other member of the Lender Group. No
Lender shall be responsible to any Borrower or any other Person for any failure
by any other Lender to fulfill its obligations to make credit available
hereunder, nor to advance for it or on its behalf in connection with its
Commitment, nor to take any other action on its behalf hereunder or in
connection with the financing contemplated herein.

         16.19    [INTENTIONALLY OMITTED.]

         16.20    ADDITIONAL AGENTS. None of the Lenders or other entities
identified on the facing page of or elsewhere in this Agreement as a "Lead
Arranger", "Syndication Agent" or "Co-Documentation Agent" shall have any right,
power, obligation, liability, responsibility or duty under this Agreement or any
other Loan Document other than those applicable to all Lenders as such. Without
limiting the foregoing, none of the Lenders so identified shall have or be
deemed to have any fiduciary relationship with any other Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders or
other entities so identified in deciding to enter into this Agreement or any
other Loan Document or in taking or not taking action hereunder or thereunder.

                                      125
<PAGE>

         16.21    QUEBEC SECURITY. For greater certainty, and without limiting
the powers of Agent or any other Person acting as an agent for the Lender Group
hereunder or under any of the Loan Documents, each Borrower hereby acknowledges
that, for purposes of holding any Liens, including hypothecs, granted or to be
granted by any Borrower or any Guarantor on movable or immovable property
pursuant to the laws of the Province of Quebec to secure obligations of any
Borrower or any Guarantor under any bond issued by any Borrower or any
Guarantor, Agent shall be the holder of an irrevocable power of attorney (fonde
de pouvoir within the meaning of Article 2692 of the Civil Code of Quebec) (the
"Fonde de pouvoir") for and on behalf of (i) all present and future Lenders
(including the Issuing Lender), (ii) the Issuing Lender and the Underlying
Issuer that may from time to time, and respectively, issue L/C and L/C
Undertaking for the account of Borrowers, and (iii) any Bank Product Provider
that may from time to time extend Bank Products to Administrative Borrower or
its Subsidiaries. Each Lender (including the Issuing Lender), for itself and on
behalf of any Underlying Issuer that issues or may issue L/C Undertaking for the
account of Borrowers and any Bank Product Provider that extends or may extend
Bank Products to Administrative Borrower or its Subsidiaries, hereby (i)
irrevocably constitutes, to the extent necessary, Agent as the Fonde de pouvoir
in order to hold Liens, including hypothecs, granted or to be granted by any
Borrower or any Guarantor on movable and immovable property pursuant to the laws
of the Province of Quebec to secure obligations of any Borrower or any Guarantor
under any bond issued by any Borrower or any Guarantor; and (ii) appoints and
agrees that Agent, acting as administrative agent for the Lenders (including the
Issuing Lender) may act as the bondholder and mandatary with respect to any bond
that may be issued and pledged from time to time for the benefit of the Lenders
(including the Issuing Lender), any Underlying Issuer and any Bank Product
Provider.

         The said constitution of the Fonde de pouvoir as the holder of such
irrevocable power of attorney and of Agent as bondholder and mandatory with
respect to any bond that may be issued and pledged from time to time for the
benefit of the Lenders (including the Issuing Lender), the Underlying Issuer and
the Bank Product Provider shall be deemed to have been ratified and confirmed as
follows:

                           (i)      by any Assignee by the execution of an
                  Assignment and Acceptance;

                           (ii)     by any Issuing Lender, Underlying Issuer or
                  Bank Product Provider by the issuance or execution, as the
                  case may be, of L/C, L/C Undertaking or Bank Product; and

                           (iii)    by any assignee of the Issuing Lender, the
                  Underlying Issuer or of the Bank Product Provider by the
                  execution of an assignment agreement.

         Notwithstanding the provisions of Section 32 of the An Act respecting
the special powers of legal persons (Quebec), Agent may purchase, acquire and be
the holder of any bond issued by any Borrower or any Guarantor (i.e. the Fonde
de pouvoir may acquire and hold the first bond issued under any deed of hypothec
granted by any Borrower or any Guarantor). Each Borrower hereby acknowledges
that any such bond shall constitute a title of indebtedness, as such term is
used in Article 2692 of the Civil Code of Quebec.

                                      126
<PAGE>

         Agent herein appointed as Fonde de pouvoir shall have the same rights,
powers and immunities as the Agent as stipulated in this Section 16, which shall
apply mutatis mutandis. Without limitation, the provisions of Section 16.9 shall
apply mutatis mutandis to the resignation and appointment of a successor to
Agent acting as Fonde de pouvoir.

17.      GENERAL PROVISIONS.

         17.1     EFFECTIVENESS. This Agreement shall be binding and deemed
effective when executed by Borrowers, Agent, and each Lender whose signature is
provided for on the signature pages hereof.

         17.2     SECTION HEADINGS. Headings and numbers have been set forth
herein for convenience only. Unless the contrary is compelled by the context,
everything contained in each Section applies equally to this entire Agreement.

         17.3     INTERPRETATION. Neither this Agreement nor any uncertainty or
ambiguity herein shall be construed or resolved against the Lender Group or
Borrowers, whether under any rule of construction or otherwise. On the contrary,
this Agreement has been reviewed by all parties and shall be construed and
interpreted according to the ordinary meaning of the words used so as to
accomplish fairly the purposes and intentions of all parties hereto.

         17.4     SEVERABILITY OF PROVISIONS. Each provision of this Agreement
shall be severable from every other provision of this Agreement for the purpose
of determining the legal enforceability of any specific provision. Furthermore,
the provisions of any Loan Document shall be severable from the provisions of
every other Loan Document for the purpose of determining the legal
enforceability of any specific provision.

         17.5     AMENDMENTS IN WRITING. This Agreement only can be amended by a
writing in accordance with Section 15.1.

         17.6     COUNTERPARTS; TELEFACSIMILE EXECUTION. This Agreement may be
executed in any number of counterparts and by different parties on separate
counterparts, each of which, when executed and delivered, shall be deemed to be
an original, and all of which, when taken together, shall constitute but one and
the same Agreement. Delivery of an executed counterpart of this Agreement by
telefacsimile or via email transmission of an Adobe portable document format
file (also known as a "PDF File") shall be equally as effective as delivery of
an original executed counterpart of this Agreement. Any party delivering an
executed counterpart of this Agreement by telefacsimile or via email
transmission of an Adobe portable document format file (also known as a "PDF
File") also shall deliver an original executed counterpart of this Agreement but
the failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Agreement. The foregoing
shall apply to each other Loan Document mutatis mutandis.

         17.7     REVIVAL AND REINSTATEMENT OF OBLIGATIONS. If the incurrence or
payment of the Obligations by any Borrower or any Guarantor or the transfer to
the Lender Group of any property should for any reason subsequently be declared
to be void or voidable under any state or federal law relating to creditors'
rights, including provisions of the Bankruptcy Code relating to fraudulent
conveyances, preferences, or other voidable or recoverable payments of money or

                                      127
<PAGE>

transfers of property (collectively, a "Voidable Transfer"), and if the Lender
Group is required to repay or restore, in whole or in part, any such Voidable
Transfer, or elects to do so upon the reasonable advice of its counsel, then, as
to any such Voidable Transfer, or the amount thereof that the Lender Group is
required or elects to repay or restore, and as to all reasonable costs,
expenses, and attorneys fees of the Lender Group related thereto, the liability
of Borrowers or Guarantors automatically shall be revived, reinstated, and
restored and shall exist as though such Voidable Transfer had never been made.

         17.8     INTEGRATION. This Agreement, together with the other Loan
Documents, reflects the entire understanding of the parties with respect to the
transactions contemplated hereby and shall not be contradicted or qualified by
any other agreement, oral or written, before the date hereof.

         17.9     PARENT AS AGENT FOR BORROWERS. Each Borrower hereby
irrevocably appoints Parent as the borrowing agent and attorney-in-fact for all
Borrowers ("Administrative Borrower") which appointment shall remain in full
force and effect unless and until Agent shall have received prior written notice
signed by each Borrower that such appointment has been revoked and that another
Borrower has been appointed Administrative Borrower. Each Borrower hereby
irrevocably appoints and authorizes Administrative Borrower (i) to provide Agent
with all notices with respect to Advances and Letters of Credit obtained for the
benefit of any Borrower and all other notices and instructions under this
Agreement and (ii) to take such action as Administrative Borrower deems
appropriate on its behalf to obtain Advances and Letters of Credit and to
exercise such other powers as are reasonably incidental thereto to carry out the
purposes of this Agreement. It is understood that the handling of the Loan
Account and Collateral in a combined fashion, as more fully set forth herein, is
done solely as an accommodation to Borrowers in order to utilize the collective
borrowing powers of Borrowers in the most efficient and economical manner and at
their request, and that Lender Group shall not incur liability to any Borrower
as a result hereof. Each Borrower expects to derive benefit, directly or
indirectly, from the handling of the Loan Account and the Collateral in a
combined fashion since the successful operation of each Borrower is dependent on
the continued successful performance of the integrated group. To induce the
Lender Group to do so, and in consideration thereof, each Borrower hereby
jointly and severally agrees to indemnify each member of the Lender Group and
hold each member of the Lender Group harmless against any and all liability,
expense, loss or claim of damage or injury, made against the Lender Group by any
Borrower or by any third party whosoever, arising from or incurred by reason of
(a) the handling of the Loan Account and Collateral as herein provided, (b) the
Lender Group's relying on any instructions of Administrative Borrower, or (c)
any other action taken by the Lender Group hereunder or under the other Loan
Documents, except that Borrowers will have no liability to the relevant
Agent-Related Person or Lender-Related Person under this Section 17.9 with
respect to any liability that has been finally determined by a court of
competent jurisdiction to have resulted solely from the gross negligence or
willful misconduct of such Agent-Related Person or Lender-Related Person, as the
case may be.

         17.10    CONFIDENTIALITY. Agent and the Lenders each individually (and
not jointly or jointly and severally) agree that material, non-public
information regarding Borrowers and their Subsidiaries, their operations,
assets, and existing and contemplated business plans shall be treated by Agent

                                      128
<PAGE>

and the Lenders in a confidential manner, and shall not be disclosed by Agent
and the Lenders to Persons who are not parties to this Agreement, except: (a) to
attorneys for and other advisors, accountants, auditors, and consultants to any
member of the Lender Group, (b) to Subsidiaries and Affiliates of any member of
the Lender Group (including the Bank Product Providers), provided that any such
Subsidiary or Affiliate shall have agreed to receive such information hereunder
subject to the terms of this Section 17.10, (c) as may be required by statute,
decision, or the Court or other judicial or administrative order, rule, or
regulation, or to the extent requested by any regulatory authority purporting to
have jurisdiction over any Lender (including any self-regulatory authority, such
as the National Association of Insurance Commissioners), (d) as may be agreed to
in advance by Administrative Borrower or its Subsidiaries or as requested or
required by any Governmental Authority pursuant to any subpoena or other legal
process, (e) as to any such information that is or becomes generally available
to the public (other than as a result of prohibited disclosure by Agent or the
Lenders), (f) in connection with any assignment, prospective assignment, sale,
prospective sale, participation or prospective participations, or pledge or
prospective pledge of any Lender's interest under this Agreement, provided that
any such assignee, prospective assignee, purchaser, prospective purchaser,
participant, prospective participant, pledgee, or prospective pledgee shall have
agreed in writing to receive such information hereunder subject to the terms of
this Section, and (g) in connection with any litigation or other adversary
proceeding involving parties hereto which such litigation or adversary
proceeding involves claims related to the rights or duties of such parties under
this Agreement or the other Loan Documents. The provisions of this Section 17.10
shall survive for 2 years after the payment in full of the Obligations. Anything
contained herein or in any other Loan Document to the contrary notwithstanding,
the obligations of confidentiality contained herein and therein, as they relate
to the transactions contemplated hereby, shall not apply to the federal tax
structure or federal tax treatment of such transactions, and each party hereto
(and any employee, representative, or agent of any party hereto) may disclose to
any and all Persons, without limitation of any kind, the federal tax structure
and federal tax treatment of such transactions (including all written materials
related to such tax structure and tax treatment). The preceding sentence is
intended to cause the transactions contemplated hereby to not be treated as
having been offered under conditions of confidentiality for purposes of Section
1.6011-4(b)(3) (or any successor provision) of the Treasury Regulations
promulgated under Section 6011 of the IRC and shall be construed in a manner
consistent with such purpose. In addition, each party hereto acknowledges that
it has no proprietary or exclusive rights to the tax structure of the
transactions contemplated hereby or any tax matter or tax idea related thereto.

                           [Signature pages to follow]

                                      129
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed and delivered as of the date first above written.

BORROWERS:                   AMERCO, a Nevada corporation

                             By: /s/ Gary V. Klinefelter
                                 ___________________________________
                             Title: Secretary
                                    ________________________________

                             AMERCO REAL ESTATE COMPANY,
                             a Nevada corporation

                             By: /s/ Carlos Vizcarra
                                 ___________________________________
                             Title: President
                                    ________________________________

                             AMERCO REAL ESTATE COMPANY
                             OF ALABAMA, INC., an Alabama
                             corporation

                             By: /s/ Carlos Vizcarra
                                 ___________________________________
                             Title: President
                                    ________________________________

                             AMERCO REAL ESTATE COMPANY
                             OF TEXAS, INC., a Texas
                             corporation

                             By: /s/ Carlos Vizcarra
                                 ___________________________________
                             Title: President
                                    ________________________________

                             FIVE PAC COMPANY, a Nevada corporation

                             By: /s/ Carlos Vizcarra
                                 ___________________________________
                             Title: President
                                    ________________________________

                             FOURTEEN PAC COMPANY, a Nevada corporation

                             By: /s/ Carlos Vizcarra
                                 ___________________________________
                             Title: President
                                    ________________________________

LOAN AND SECURITY AGREEMENT

                                      S-1

<PAGE>

                             ONE PAC COMPANY, a Nevada corporation

                             By: /s/ Carlos Vizcarra
                                 ___________________________________
                             Title: President
                                    ________________________________

LOAN AND SECURITY AGREEMENT

                                      S-2

<PAGE>

                             SEVEN PAC COMPANY, a Nevada corporation

                             By: /s/ Carlos Vizcarra
                                 ___________________________________

                            Title: President
                                   ________________________________

                             SIXTEEN PAC COMPANY, a Nevada corporation

                             By: /s/ Carlos Vizcarra
                                 ___________________________________

                             Title: President
                                    ________________________________

                             TEN PAC COMPANY, a Nevada corporation

                             By: /s/ Carlos Vizcarra
                                 ___________________________________

                            Title: President
                                   ________________________________

                             U-HAUL CO. OF ALASKA, an Alaska corporation

                             By: /s/ Gary V. Klinefelter
                                 ___________________________________

                             Title: Secretary
                                    ________________________________

                             U-HAUL CO. OF ARIZONA, an Arizona corporation

                             By: /s/ Gary V. Klinefelter
                                 ___________________________________

                             Title: Secretary
                                    ________________________________

                             U-HAUL CO. OF FLORIDA, a Florida corporation

                             By: /s/ Gary V. Klinefelter
                                 ___________________________________

                             Title: Secretary
                                    ________________________________

LOAN AND SECURITY AGREEMENT

                                      S-3

<PAGE>

                             U-HAUL CO. OF HAWAII, INC., a Hawaii corporation

                             By: /s/ Gary V. Klinefelter
                                 ___________________________________
                             Title: Secretary
                                    ________________________________

LOAN AND SECURITY AGREEMENT

                                      S-4
<PAGE>

                             U-HAUL INTERNATIONAL, INC., a Nevada corporation

                             By: /s/ Gary V. Klinefelter
                                 ___________________________________

                             Title: Secretary
                                    ________________________________

                             YONKERS PROPERTY CORPORATION,
                             a New York corporation
                             By: /s/ Gary V. Klinefelter
                                 ___________________________________

                             Title: Secretary
                                    ________________________________

AGENT AND LENDERS:           WELLS FARGO FOOTHILL, INC.,
                             a California corporation, as Agent and as Lender

                             By: /s/ [Illegible]
                                 ___________________________________

                             Title: ________________________________

LOAN AND SECURITY AGREEMENT

                                      S-5
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                            PAGE
<S>                                                                                                         <C>
1.       DEFINITIONS AND CONSTRUCTION.................................................................         2

         1.1      Definitions.........................................................................         2

         1.2      Accounting Terms; GAAP..............................................................        38

         1.3      Code................................................................................        39

         1.4      Construction........................................................................        39

         1.5      Schedules and Exhibits..............................................................        39

2.       LOAN AND TERMS OF PAYMENT....................................................................        39

         2.1      Revolver Advances...................................................................        39

         2.2      Term Loan...........................................................................        40

         2.3      Borrowing Procedures and Settlements................................................        40

         2.4      Payments............................................................................        47

         2.5      Overadvances........................................................................        50

         2.6      Interest Rates and Letter of Credit Fee:  Rates, Payments, and Calculations.........        50

         2.7      Cash Management.....................................................................        52

         2.8      Crediting Payments..................................................................        53

         2.9      Designated Account..................................................................        53

         2.10     Maintenance of Loan Account; Statements of Obligations..............................        54

         2.11     Fees................................................................................        54

         2.12     Letters of Credit...................................................................        54

         2.13     LIBOR Option........................................................................        58

         2.14     Capital Requirements................................................................        60

         2.15     Joint and Several Liability of Borrowers............................................        61

         2.16     Registered Notes....................................................................        63

3.       CONDITIONS; TERM OF AGREEMENT................................................................        63

         3.1      Conditions Precedent to the Initial Extension of Credit.............................        63

         3.2      Conditions Subsequent to the Initial Extension of Credit............................        68

         3.3      Conditions Precedent to all Extensions of Credit....................................        68

         3.4      Term................................................................................        69

         3.5      Effect of Termination...............................................................        69
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         3.6      Early Termination by Borrowers......................................................       69

4.       CREATION OF SECURITY INTEREST................................................................       70

         4.1      Grant of Security Interest..........................................................       70

         4.2      Negotiable Collateral and Chattel Paper.............................................       70

         4.3      Collection of Accounts, General Intangibles, and Negotiable Collateral..............       71

         4.4      Delivery of Additional Documentation Required.......................................       71

         4.5      Power of Attorney...................................................................       72

         4.6      Right to Inspect....................................................................       72

         4.7      Control Agreements..................................................................       73

         4.8      Commercial Tort Claims..............................................................       73

         4.9      Grants, Rights and Remedies.........................................................       73

         4.10     Survival............................................................................       74

5.       REPRESENTATIONS AND WARRANTIES...............................................................       74

         5.1      No Encumbrances.....................................................................       74

         5.2      Ownership of Certain Assets.........................................................       74

         5.3      [Intentionally Omitted.]............................................................       74

         5.4      Equipment...........................................................................       74

         5.5      Location of Equipment...............................................................       74

         5.6      Equipment Records...................................................................       74

         5.7      Location of Chief Executive Office; FEIN; Organizational ID Number..................       74

         5.8      Due Organization and Qualification; Subsidiaries; Affiliates........................       75

         5.9      Due Authorization; No Conflict......................................................       76

         5.10     Litigation..........................................................................       77

         5.11     Financial Statements; No Material Adverse Change....................................       77

         5.12     Fraudulent Transfer.................................................................       78

         5.13     Employee Benefits...................................................................       78

         5.14     Environmental Condition.............................................................       78

         5.15     Brokerage Fees......................................................................       78

         5.16     Intellectual Property...............................................................       79
</TABLE>

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<TABLE>
<CAPTION>
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         5.17     Leases..............................................................................       79

         5.18     DDAs................................................................................       79

         5.19     Complete Disclosure.................................................................       79

         5.20     Indebtedness, Etc...................................................................       79

         5.21     Confirmation Order..................................................................       80

         5.22     Reservation Management System.......................................................       80

         5.23     Taxes and Remittances...............................................................       80

         5.24     Investigations......................................................................       80

         5.25     Vehicles............................................................................       80

         5.26     Anti-Terrorism Laws.................................................................       81

6.       AFFIRMATIVE COVENANTS........................................................................       82

         6.1      Accounting System...................................................................       82

         6.2      Collateral Reporting................................................................       82

         6.3      Financial Statements, Reports, Certificates.........................................       82

         6.4      Guarantor Reports...................................................................       85

         6.5      [Intentionally Omitted.]............................................................       85

         6.6      Maintenance of Properties...........................................................       85

         6.7      Taxes...............................................................................       86

         6.8      Insurance...........................................................................       86

         6.9      Location of Equipment...............................................................       87

         6.10     Compliance with Laws................................................................       87

         6.11     Leases..............................................................................       87

         6.12     Brokerage Commissions...............................................................       87

         6.13     Existence...........................................................................       88

         6.14     Environmental.......................................................................       88

         6.15     Disclosure Updates..................................................................       88

         6.16     Material Contracts; Affiliate Contracts.............................................       88

         6.17     Employee Benefits...................................................................       88

         6.18     Real Estate.........................................................................       89

         6.19     Reorganization Plan.................................................................       90
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         6.20     Vehicles............................................................................        90

7.       NEGATIVE COVENANTS...........................................................................        90

         7.1      Indebtedness, Etc...................................................................        90

         7.2      Liens...............................................................................        92

         7.3      Restrictions on Fundamental Changes.................................................        92

         7.4      Disposal of Assets..................................................................        92

         7.5      Change Name.........................................................................        93

         7.6      Guarantee...........................................................................        93

         7.7      Nature of Business..................................................................        93

         7.8      Prepayments and Amendments..........................................................        93

         7.9      Change of Control...................................................................        94

         7.10     Ownership of Certain Assets.........................................................        95

         7.11     Distributions.......................................................................        95

         7.12     Accounting Methods..................................................................        95

         7.13     Formation of Subsidiaries; Investments..............................................        95

         7.14     Transactions with Affiliates........................................................        96

         7.15     Suspension..........................................................................        97

         7.16     [Intentionally Omitted.]............................................................        97

         7.17     Use of Proceeds.....................................................................        97

         7.18     Change in Location of Chief Executive Office; Equipment with Bailees................        97

         7.19     Securities Accounts.................................................................        97

         7.20     Financial Covenants.................................................................        97

         7.21     No Prohibited Transactions Under ERISA..............................................        99

         7.22     Sales and Leasebacks................................................................       100

         7.23     Anti-Terrorism Laws.................................................................       100

         7.24     Speculative Transactions............................................................       100

8.       EVENTS OF DEFAULT............................................................................       100

9.       THE LENDER GROUP'S RIGHTS AND REMEDIES.......................................................       103

         9.1      Rights and Remedies.................................................................       103
</TABLE>

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         9.2      Remedies Cumulative.................................................................       105

10.      TAXES AND EXPENSES...........................................................................       105

11.      WAIVERS; INDEMNIFICATION.....................................................................       106

         11.1     Demand; Protest; etc................................................................       106

         11.2     The Lender Group's Liability for Collateral.........................................       106

         11.3     Indemnification.....................................................................       106

12.      NOTICES......................................................................................       107

13.      CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER...................................................       109

14.      ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS...................................................       109

         14.1     Assignments and Participations......................................................       109

         14.2     Successors..........................................................................       113

15.      AMENDMENTS; WAIVERS..........................................................................       114

         15.1     Amendments and Waivers..............................................................       114

         15.2     Replacement of Holdout Lender.......................................................       115

         15.3     No Waivers; Cumulative Remedies.....................................................       115

         15.4     WP Carey Transaction................................................................       115

16.      AGENT; THE LENDER GROUP......................................................................       116

         16.1     Appointment and Authorization of Agent..............................................       116

         16.2     Delegation of Duties................................................................       116

         16.3     Liability of Agent..................................................................       117

         16.4     Reliance by Agent...................................................................       117

         16.5     Notice of Default or Event of Default...............................................       117

         16.6     Credit Decision.....................................................................       118

         16.7     Costs and Expenses; Indemnification.................................................       118

         16.8     Agent in Individual Capacity........................................................       119

         16.9     Successor Agent.....................................................................       119

         16.10    Lender in Individual Capacity.......................................................       120

         16.11    Withholding Taxes...................................................................       120

         16.12    Collateral Matters..................................................................       122

         16.13    Restrictions on Actions by Lenders; Sharing of Payments.............................       123
</TABLE>

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<TABLE>
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<S>                                                                                                         <C>
         16.14    Agency for Perfection...............................................................       123

         16.15    Payments by Agent to the Lenders....................................................       124

         16.16    Concerning the Collateral and Related Loan Documents................................       124

         16.17    Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other
                  Reports and Information.............................................................       124

         16.18    Several Obligations; No Liability...................................................       125

         16.19    [Intentionally Omitted.]............................................................       125

         16.20    Additional Agents...................................................................       125

         16.21    Quebec Security.....................................................................       126

17.      GENERAL PROVISIONS...........................................................................       127

         17.1     Effectiveness.......................................................................       127

         17.2     Section Headings....................................................................       127

         17.3     Interpretation......................................................................       127

         17.4     Severability of Provisions..........................................................       127

         17.5     Amendments in Writing...............................................................       127

         17.6     Counterparts; Telefacsimile Execution...............................................       127

         17.7     Revival and Reinstatement of Obligations............................................       127

         17.8     Integration.........................................................................       128

         17.9     Parent as Agent for Borrowers.......................................................       128

         17.10    Confidentiality.....................................................................       128
</TABLE>

                                      -vi-
<PAGE>

                             EXHIBITS AND SCHEDULES

Exhibit A-1            Form of Assignment and Acceptance Agreement
Exhibit B-1            Form of Borrowing Base Certificate
Exhibit C-1            Form of Compliance Certificate
Exhibit L-1            Form of LIBOR Notice

Schedule A-1           Affiliate Contracts
Schedule A-2           Agent's Account
Schedule C-1           Commercial Tort Claims
Schedule C-2           Commitments
Schedule D-1           Designated Account
Schedule E-1           Excluded Assets
Schedule G-1           Guarantors
Schedule M-1           Material Contracts
Schedule P-1           Permitted Liens
Schedule R-1           Real Property Collateral
Schedule W-1           WP Carey Transaction
Schedule 2.7(a)        Cash Management Banks
Schedule 2.7(e)        Cash Collateral Accounts
Schedule 3.1(d)        Collateral Access Agreements
Schedule 3.1(t)        Contracts with SAC Holding, SSI, PMSR or PM Preferred
Schedule 3.1(w)        Book Value of Trucks
Schedule 3.2(d)        Zoning Letters
Schedule 3.2(e)        Subordinated, Non-Disturbance and Attornment Agreements
Schedule 5.7           Chief Executive Office; FEIN; Organizational ID Number
Schedule 5.8(b)        Capitalization of Borrowers
Schedule 5.8(c)        Capitalization of Borrowers' and Guarantors' Subsidiaries
Schedule 5.8(d)        Subscriptions; Options; Warrants
Schedule 5.8(e)        Affiliates
Schedule 5.10          Litigation
Schedule 5.13          Employee Benefits
Schedule 5.14          Environmental Matters
Schedule 5.16          Intellectual Property
Schedule 5.18          Demand Deposit Accounts
Schedule 5.20(a)       Indebtedness as of the Closing Date
Schedule 5.20(b)       TRAC Lease Transactions as of the Closing Date
Schedule 5.20(c)       Maximum Debt; Refinancing Indebtedness
Schedule 7.8(a)        Scheduled Payments under Synthetic Leases

<PAGE>

                                  SCHEDULE A-2

                                 AGENT'S ACCOUNT

                  An account at a bank designated by Agent from time to time as
the account into which Borrowers shall make all payments to Agent for the
benefit of the Lender Group and into which the Lender Group shall make all
payments to Agent under this Agreement and the other Loan Documents; unless and
until Agent notifies Administrative Borrower and the Lender Group to the
contrary, Agent's Account shall be that certain deposit account bearing account
number 323-266193 and maintained by Agent with JPMorgan Chase Bank, 4 New York
Plaza, 15th Floor, New York, New York 10004, ABA #021000021.

<PAGE>

                                  SCHEDULE C-2

                                   COMMITMENTS

<TABLE>
<CAPTION>
            LENDER           REVOLVER COMMITMENT          TERM LOAN COMMITMENT            TOTAL COMMITMENT
            ------           -------------------          --------------------            ----------------
<S>                          <C>                          <C>                             <C>
Wells Fargo Foothill, Inc.      $200,000,000                 $350,000,000                   $550,000,000

All Lenders                     $200,000,000                 $350,000,000                   $550,000,000
</TABLE>

<PAGE>

                                  SCHEDULE D-1

                               DESIGNATED ACCOUNT

                  Account number 42-4903 of Administrative Borrower maintained
with Administrative Borrower's Designated Account Bank, or such other deposit
account of Administrative Borrower (located within the United States) that has
been designed as such, in writing, by Administrative Borrower to Agent.

                  "Designated Account Bank" means Bank One Arizona whose office
is located at 201 North Central Avenue, Phoenix, Arizona 85004 and whose ABA
number is 122100024.
<PAGE>

                                    GUARANTY

         This GUARANTY (this "Guaranty") is entered into as of March 1, 2004, by
each of the parties listed on the signature page hereof as a guarantor, together
with those additional entities that hereafter become parties hereto by executing
the form of Supplement attached hereto as Annex 1 (each, a "Guarantor", and
collectively, the "Guarantors"), in favor of Wells Fargo Foothill Inc., a
California corporation, as administrative agent and collateral agent for the
Lenders (as defined in the hereinafter defined Loan Agreement) ("Agent").

                              W I T N E S S E T H:

         WHEREAS, AMERCO, a Nevada corporation, and each of its Subsidiaries (as
defined in the hereinafter defined Loan Agreement) that are signatories thereto,
as borrowers (collectively, the "Borrowers"), Agent, and the Lenders are parties
to that certain Loan and Security Agreement dated as of even date herewith (as
the same may be amended, restated, supplemented or otherwise modified from time
to time, the "Loan Agreement"; capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to such terms in the Loan Agreement),
pursuant to which the Lender Group has agreed to make Advances, issue Letters of
Credit and make other extensions of credit to the Borrowers from time to time
pursuant to the terms and conditions thereof and the other Loan Documents; and

         WHEREAS, the Guarantors are direct or indirect Subsidiaries of a
Borrower, and each Guarantor has determined that it will realize substantial
direct and indirect benefits as a result of the loans and other financial
accommodations extended to the Borrowers pursuant to the Loan Agreement, and
such Guarantor's execution, delivery and performance of this Guaranty are within
such Guarantor's corporate or other purposes and are in the best interests of
such Guarantor; and

                  WHEREAS, it is a condition precedent to the execution and
delivery of the Loan Agreement by the Lender Group and the extension of the
loans and other financial accommodations to the Borrowers thereunder that each
Guarantor execute and deliver this Guaranty to Agent; and

         WHEREAS, the obligations of each Guarantor hereunder are secured by
security interests granted to Agent, for the benefit of the Lender Group and the
Bank Product Providers, pursuant to that certain Guarantor Security Agreement
dated as of even date herewith, among the Guarantors (as defined in the Loan
Agreement) and Agent (the "Guarantor Security Agreement"), and any other Loan
Documents to which such Guarantor is a party;

         NOW, THEREFORE, for and in consideration of the recitals made above,
and other good and valuable consideration, the receipt, sufficiency and adequacy
of which are hereby acknowledged, each Guarantor hereby agrees as follows:

                  1.       Guaranty. Each Guarantor hereby guarantees to Agent,
for the benefit of the Lender Group and the Bank Product Providers, the full and
prompt payment and performance of (a) the Obligations and the other covenants,
agreements and liabilities of the Borrowers under the Loan Agreement and the
other Loan Documents and (b) all of the

<PAGE>

obligations of each Guarantor and the other Guarantors (as defined in the Loan
Agreement) to Agent under (i) this Guaranty, (ii) that certain Guarantee as of
even date herewith, given by U-Haul Co. (Canada) Ltd. U-Haul Co. (Canada) Ltee
and U-Haul Inspections, Ltd. to Agent, and (iii) all other Loan Documents and
any extensions, renewals or amendments to any of the foregoing, however created,
acquired, arising or evidenced, whether arising during or after the initial or
any renewal term of the Loan Agreement or after the commencement of any
Insolvency Proceeding (including, without limitation, those applicable to
Guarantors located in a foreign jurisdiction) with respect to any Borrower
(including, without limitation, the payment of interest and other amounts which
would accrue and become due but for the commencement of such Insolvency
Proceeding, and whether or not such claim is allowed in such Insolvency
Proceeding), whether direct or indirect, absolute or contingent, now or
hereafter existing, joint or several, due or to become due, primary or
secondary, liquidated or unliquidated, secured or unsecured, and however
acquired by Agent or any other member of the Lender Group, including, without
limitation, any interest on any of the foregoing, plus reasonable attorneys'
fees and expenses if the obligations represented by this Guaranty are collected
by law, through an attorney-at-law, or under advice therefrom (all of the
foregoing now existing or hereafter arising obligations being referred to,
collectively, as the "Guaranteed Obligations").

                  2.       Joint and Several Liability. Regardless of whether
any proposed guarantor, surety or any other Person or Persons is or are or shall
become in any other way responsible to the Lender Group, the Bank Product
Providers, or any of them, for or in respect of the Guaranteed Obligations or
any part thereof, and regardless of whether or not any Person now or hereafter
responsible to the Lender Group, the Bank Product Providers, or any of them, for
the Guaranteed Obligations or any part thereof, whether under this Guaranty or
otherwise, shall cease to be so liable, each Guarantor hereby declares and
agrees that this Guaranty shall be a joint and several obligation, shall be a
continuing guaranty and shall be operative and binding until the later of such
time as indefeasible payment in full in cash of the Guaranteed Obligations
(including (i) either (A) providing cash collateral to be held by Agent in an
amount equal to 105% of the then extant Letter of Credit Usage, or (B) causing
the original Letters of Credit to be returned to Issuing Lender, and (ii)
providing cash collateral (in an amount determined by the applicable Bank
Product Provider as sufficient to satisfy the reasonably estimated credit
exposure) to be held by Agent for the benefit of the Bank Product Providers with
respect to the then extant Bank Products Obligations), termination of the Loan
Agreement and termination of the Commitments, in each case to the reasonable
satisfaction of the Lender Group.

                  3.       Merger. Upon execution of this Guaranty and delivery
thereof to Agent, this Guaranty shall be deemed to be finally executed and
delivered by the Guarantors and shall not be subject to or affected by any
promise or condition affecting or limiting any Guarantor's liability, and no
statement, representation, agreement or promise on the part of the Lender Group,
the Borrowers and the Guarantors, or any of them, or any officer, employee or
agent thereof, unless contained herein, forms any part of this Guaranty or has
induced the making thereof or shall be deemed in any way to affect any
Guarantor's liability hereunder. Each of the Guarantors absolutely,
unconditionally and irrevocably waives any and all right to assert any defense,
set-off, counterclaim or cross-claim of any nature whatsoever with respect to
this Guaranty or the obligations of such Guarantor under this Guaranty or the
obligations of any other Person or party (including, without limitation, the
Borrowers) relating to this Guaranty or the obligations of any of the Guarantors
under this Guaranty or otherwise with respect to the Guaranteed Obligations in

                                     - 2 -
<PAGE>

any action or proceeding brought by Agent hereof to collect the Guaranteed
Obligations or any portion thereof or to enforce the obligations of any of the
Guarantors under this Guaranty.

                  4.       Rights of the Lender Group. Agent may from time to
time, without exonerating or releasing any Guarantor in any way under this
Guaranty, (i) take such further or other security or collateral for the
Guaranteed Obligations or any part thereof as it may deem proper, (ii) release,
discharge, abandon or otherwise deal with or fail to deal with any other
Guarantor or other guarantor of the Guaranteed Obligations or any collateral,
security or securities therefor or any part thereof now or hereafter held by
Agent or any other member of the Lender Group, (iii) amend, increase the amount
owing under, modify, extend, accelerate or waive in any manner any of the
provisions, terms, or conditions of the Loan Documents, pursuant to the
provisions of such Loan Documents, or (iv) act or fail to act in any manner
referred to in this Guaranty without regard to whether such action or inaction
may deprive a Guarantor of its right to subrogation against the Borrowers to
recover full indemnity for any payments made pursuant to this Guaranty. Without
limiting the generality of the foregoing, or of Section 5 hereof, it is
understood that Agent may, without exonerating or releasing any Guarantor, give
up, or modify or abstain from perfecting or taking advantage of any security or
Collateral in respect of the Guaranteed Obligations and accept or make any
compositions or arrangements, and realize upon any security for the Guaranteed
Obligations when, and in such manner, and with or without notice, all as such
Person or Persons may deem expedient.

                  5.       Guaranteed Obligations of Each Guarantor Absolute.
Each Guarantor acknowledges and agrees that no change in the nature or terms of
the Guaranteed Obligations or any of the Loan Documents or other agreements,
instruments or contracts evidencing, related to or attendant upon the Guaranteed
Obligations (including any novation) shall discharge all or any part of the
liabilities and obligations of such Guarantor pursuant to this Guaranty, it
being the purpose and intent of each Guarantor and Agent that the covenants,
agreements and all liabilities and obligations of such Guarantor hereunder are
absolute, unconditional and irrevocable under any and all circumstances. Without
limiting the generality of the foregoing, each Guarantor agrees that until all
of the covenants and agreements of this Guaranty are fully performed, and
without possibility of recourse, whether by operation of law or otherwise, such
Guarantor's undertakings hereunder shall not be released, in whole or in part,
by any action or thing that might, but for this paragraph of this Guaranty, be
deemed a legal or equitable discharge of a surety or guarantor, or by reason of
any waiver, omission of Agent or any other member of the Lender Group, or its or
their failure to proceed promptly or otherwise, or by reason of any action taken
or omitted by Agent or any other member of the Lender Group, whether or not such
action or failure to act varies or increases the risk of, or affects the rights
or remedies of, such Guarantor or by reason of any further dealings between the
Borrowers, on the one hand, and Agent or the Lender Group or any member thereof,
on the other hand, or any other guarantor or surety, and such Guarantor hereby
expressly waives and surrenders any defense to its liability hereunder, or any
right of counterclaim or offset of any nature or description that it may have or
may exist based upon, and shall be deemed to have consented to, any of the
foregoing acts, omissions, things, agreements or waivers.

                  6.       Setoff. Subject to Section 16.13 of the Loan
Agreement, the Lender Group or any of them may, without demand or notice of any
kind upon or to any Guarantor, at any time or from time to time when any amount
shall be due and payable hereunder by any

                                     - 3 -
<PAGE>

Guarantor, upon the occurrence and during the continuation of an Event of
Default, setoff, appropriate and apply to any portion of the Guaranteed
Obligations hereby guaranteed, and in such order of application as set forth in
the Loan Agreement, any deposits, property, balances, credit accounts or moneys
of any Guarantor in the possession of Agent or any other member of the Lender
Group under their respective control for any purpose. If and to the extent that
any Guarantor makes any payment to Agent or any other Person pursuant to or in
respect of this Guaranty, any claim that such Guarantor may have against any
Borrower by reason thereof shall be subject and subordinate to the prior payment
in full in cash of the Guaranteed Obligations to the reasonable satisfaction of
the Lender Group.

                  7.       Maximum Guaranteed Amount. The creation or existence
from time to time of Guaranteed Obligations in excess of the amount committed to
or outstanding on the date of this Guaranty is hereby authorized, without notice
to any Guarantor, and shall in no way impair or affect this Guaranty or the
rights of Agent or any other member of the Lender Group herein. It is the
intention of each Guarantor and Agent that each Guarantor's obligations
hereunder shall be, but not in excess of, the Maximum Guaranteed Amount (as
herein defined). The "Maximum Guaranteed Amount", with respect to any Guarantor,
shall mean the maximum amount that could be paid out by such Guarantor without
rendering this Guaranty void or voidable as would otherwise be held or
determined by a court of competent jurisdiction in any Insolvency Proceeding
involving any state or any federal bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws relating to the
insolvency of debtors.

                  8.       Insolvency. Upon the bankruptcy or winding up or
other distribution of assets of any Borrower or any Subsidiary of a Borrower or
of any surety or guarantor (other than a Guarantor) for any Obligations of the
Borrowers to the Lender Group, the rights of any member of the Lender Group
against any Guarantor shall not be affected or impaired by the omission of any
member of the Lender Group to prove its claim, or to prove the full claim, as
appropriate, and Agent may prove such claims as it sees fit and may refrain from
proving any claim and in its discretion may value as it sees fit or refrain from
valuing any security held by it without in any way releasing, reducing or
otherwise affecting the liability to any member of the Lender Group of each of
the Guarantors.

                  9.       Application of Payments. Any amount received by Agent
from whatsoever source and applied toward the payment of the Guaranteed
Obligations shall be applied in such order of application as set forth in the
Loan Agreement.

                  10.      Waiver of Presentment and Demand.

                  (a)      To the extent permitted by applicable law, each
Guarantor hereby absolutely, unconditionally and irrevocably expressly waives
the following: (i) notice of acceptance of this Guaranty; (ii) notice of the
existence or creation of all or any of the Guaranteed Obligations; (iii) notice
of the amount of the Guaranteed Obligations, subject, however, to such
Guarantor's right to make inquiry of Agent to ascertain the amount of the
Guaranteed Obligations at any reasonable time; (iv) notice of any Event of
Default under the Loan Agreement or the other Loan Documents; (v) presentment,
demand, notice of dishonor, protest, and all other notices whatsoever; (vi) all
diligence in collection or protection of or realization upon the Guaranteed
Obligations or any part thereof, any obligation hereunder, or any

                                     - 4 -
<PAGE>

security for any of the foregoing; (vii) until indefeasible payment in full in
cash of the Guaranteed Obligations (including (A) either (1) providing cash
collateral to be held by Agent in an amount equal to 105% of the then extant
Letter of Credit Usage, or (2) causing the original Letters of Credit to be
returned to Issuing Lender, and (B) providing cash collateral (in an amount
determined by the applicable Bank Product Provider as sufficient to satisfy the
reasonably estimated credit exposure) to be held by Agent for the benefit of the
Bank Product Providers with respect to the then extant Bank Products
Obligations), termination of the Loan Agreement and termination of the
Commitments, in each case to the reasonable satisfaction of the Lender Group,
and termination of this Guaranty, all rights to enforce any remedy that Agent or
any other member of the Lender Group may have against the Borrowers; and (viii)
any benefit of, or right to participate in, any collateral or security now or
hereinafter held by Agent or any other member of the Lender Group in respect of
the Guaranteed Obligations. If a claim is ever made upon Agent or any other
member of the Lender Group for the repayment or recovery of any amount or
amounts received by such Person in payment of any of the Guaranteed Obligations
and such Person repays all or part of such amount by reason of (i) any judgment,
decree or order of any court or administrative body having jurisdiction over
such Person or any of its property, or (ii) any settlement or compromise of any
such claim effected by such Person with any such claimant, including any
Borrower, then in such event each Guarantor agrees that any such judgment,
decree, order, settlement or compromise shall be binding upon such Guarantor,
notwithstanding any revocation hereof or the cancellation of any promissory note
or other instrument evidencing any of the Guaranteed Obligations, and such
Guarantor shall be and remain obligated to such Person hereunder for the amount
so repaid or recovered to the same extent as if such amount had never originally
been received by such Person.

                  (b)      To the fullest extent permitted by applicable law,
each Guarantor hereby waives (i) the right by statute or otherwise to require
Agent or any other member of the Lender Group to institute suit against any
Borrower or any other Person or to exhaust any rights and remedies that Agent or
any other member of the Lender Group has or may have against any Borrower or any
other Person and (ii) any defense arising by reason of any disability or other
defense (other than the defense that the Guaranteed Obligations shall have been
indefeasibly paid in full in cash and the Commitments have been terminated) of
any Borrower or any other Person or by reason of the cessation from any cause
(other than that the Guaranteed Obligations shall have been indefeasibly paid in
full in cash and the Commitments have been terminated) whatsoever of the
liability of any Borrower or any other Person in respect thereof.

                  (c)      No Guarantor shall be released or discharged, either
in whole or in part, by Agent's or any other member of the Lender Group's
failure or delay to (i) perfect or continue the perfection of any lien or
security interest in any collateral that secures the Guaranteed Obligations or
any other obligations of the Borrowers, any Guarantor or any other Person, or
(ii) protect the property covered by such lien or security interest.

                  (d)      To the fullest extent permitted by applicable law,
each Guarantor hereby waives: (i) any rights to assert against Agent or any
other member of the Lender Group any defense (legal or equitable), set-off,
counterclaim, or claim that such Guarantor may now or at any time hereafter have
against any Borrower or any other Person liable to Agent and any other member of
the Lender Group on account of or with respect to the Guaranteed Obligations
(other than the defense that the Guaranteed Obligations shall have been
indefeasibly paid in full in cash

                                     - 5 -
<PAGE>

and the Commitments have been terminated); (ii) any defense, set-off,
counterclaim, or claim, of any kind or nature, arising directly or indirectly
from the present or future sufficiency, validity, or enforceability of the
Guaranteed Obligations (other than the defense that the Guaranteed Obligations
shall have been indefeasibly paid in full in cash and the Commitments have been
terminated); (iii) any defense arising by reason of any claim or defense based
upon an election of remedies by Agent or any other member of the Lender Group;
and (iv) the benefit of any statute of limitations affecting such Guarantor's
liability hereunder or the enforcement thereof.

                  (e)      To the fullest extent permitted by applicable law,
each Guarantor hereby waives, until indefeasible payment in full in cash of the
Guaranteed Obligations (including (i) either (A) providing cash collateral to be
held by Agent in an amount equal to 105% of the then extant Letter of Credit
Usage, or (B) causing the original Letters of Credit to be returned to Issuing
Lender, and (ii) providing cash collateral (in an amount determined by the
applicable Bank Product Provider as sufficient to satisfy the reasonably
estimated credit exposure) to be held by Agent for the benefit of the Bank
Product Providers with respect to the then extant Bank Products Obligations),
termination of the Loan Agreement and termination of the Commitments, in each
case to the reasonable satisfaction of the Lender Group, and termination of this
Guaranty, any right of subrogation such Guarantor has or may have as against any
Borrower or any other Person with respect to the Guaranteed Obligations. In
addition, each Guarantor hereby subordinates and postpones, until indefeasible
payment in full in cash of the Guaranteed Obligations (including (i) either (A)
providing cash collateral to be held by Agent in an amount equal to 105% of the
then extant Letter of Credit Usage, or (B) causing the original Letters of
Credit to be returned to Issuing Lender, and (ii) providing cash collateral (in
an amount determined by the applicable Bank Product Provider as sufficient to
satisfy the reasonably estimated credit exposure) to be held by Agent for the
benefit of the Bank Product Providers with respect to the then extant Bank
Products Obligations), termination of the Loan Agreement and termination of the
Commitments, in each case to the reasonable satisfaction of the Lender Group,
and termination of this Guaranty, any right to proceed against any Borrower or
any other Person, now or hereafter arising, for contribution, indemnity,
reimbursement, or any other suretyship rights and claims (irrespective of
whether direct or indirect, liquidated or contingent) with respect to the
Guaranteed Obligations. Each Guarantor also hereby waives any right to proceed
or to seek recourse against or with respect to any property or asset of any
Borrower or any other Person. Each Guarantor hereby agrees that, in light of the
waivers contained in this Section 10, such Guarantor shall not be deemed to be a
"creditor" (as that term is defined in Title 11 of the United States Code, as in
effect from time to time (the "Bankruptcy Code") or otherwise) of any Borrower
or any other Person, whether for purposes of the application of Sections 547 or
550 of the Bankruptcy Code or otherwise.

                  (f)      Each Guarantor hereby waives any rights and defenses
such Guarantor may have if all or part of the Guaranteed Obligations are secured
by real property. These rights and defenses are based upon Section 580a, 580b,
580d, or 726 of the California Code of Civil Procedure, the Nevada one action
rule NRS 40.430 or any similar laws of New York or any other jurisdiction.

                  (g)      WITHOUT LIMITING THE GENERALITY OF ANY OTHER WAIVER
OR OTHER PROVISION SET FORTH IN THIS GUARANTY, EACH GUARANTOR HEREBY WAIVES, TO
THE MAXIMUM EXTENT SUCH WAIVER IS

                                     - 6 -
<PAGE>

PERMITTED BY LAW, ANY AND ALL BENEFITS OR DEFENSES ARISING DIRECTLY OR
INDIRECTLY UNDER ANY ONE OR MORE OF CALIFORNIA CIVIL CODE SECTIONS 2787 THROUGH
AND INCLUDING SECTION 2855, CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 580a,
580b, 580c, 580d, AND 726, AND CHAPTER 2 OF TITLE 14 OF THE CALIFORNIA CIVIL
CODE OR ANY SIMILAR LAWS OF NEW YORK OR ANY OTHER JURISDICTION.

                  (h)      WITHOUT LIMITING THE GENERALITY OF ANY OTHER WAIVER
OR OTHER PROVISION SET FORTH IN THIS GUARANTY, EACH GUARANTOR WAIVES ALL RIGHTS
AND DEFENSES ARISING OUT OF AN ELECTION OF REMEDIES BY AGENT, EVEN THOUGH THAT
ELECTION OF REMEDIES, SUCH AS A NONJUDICIAL FORECLOSURE WITH RESPECT TO SECURITY
FOR A GUARANTEED OBLIGATION, HAS DESTROYED SUCH GUARANTOR'S RIGHTS OF
SUBROGATION AND REIMBURSEMENT AGAINST ANY BORROWER BY THE OPERATION OF SECTION
580d OF THE CALIFORNIA CODE OF CIVIL PROCEDURE OR ANY SIMILAR LAWS OF NEW YORK
OR ANY OTHER JURISDICTION OR OTHERWISE.

                  (i)      Without affecting the generality of this Section,
each Guarantor hereby also agrees to the following waivers:

                           (i)      such Guarantor agrees that Agent's right to
enforce this Guaranty is absolute and is not contingent upon the genuineness,
validity or enforceability of any of the Loan Documents. Such Guarantor waives
all benefits and defenses it may have under California Civil Code Section 2810
or any similar laws of New York or any other jurisdiction and agrees that
Agent's rights under this Guaranty shall be enforceable even if no Borrower had
any liability at the time of execution of the Loan Documents or later ceases to
be liable;

                           (ii)     such Guarantor waives all benefits and
defenses it may have under California Civil Code Section 2809 or any similar
laws of New York or any other jurisdiction with respect to its obligations under
this Guaranty and agrees that Agent's rights under the Loan Documents will
remain enforceable even if the amount secured by the Loan Documents is larger in
amount and more burdensome than that for which Borrowers are responsible. The
enforceability of this Guaranty against such Guarantor shall continue until all
sums due under the Loan Documents have been paid in full and shall not be
limited or affected in any way by any impairment or any diminution or loss of
value of any security or collateral for any Borrower's obligations under the
Loan Documents, from whatever cause, the failure of any security interest in any
such security or collateral or any disability or other defense of any Borrower,
any other guarantor of any Borrower's obligations under the Loan Documents, any
pledgor of collateral for any Person's obligations to Lender or any other Person
in connection with the Loan Documents; and

                           (iii)    such Guarantor waives all benefits and
defenses it may have under California Civil Code Sections 2845, 2849 and 2850 or
any similar laws of New York or any other jurisdiction with respect to its
obligations under this Guaranty, including the right to require Agent to (A)
proceed against any Borrower, any guarantor of any Borrower's obligations under
the Loan Documents, any other pledgor of collateral for any Person's obligations
to any

                                     - 7 -
<PAGE>

member of the Lender Group or any other Person in connection with the Guaranteed
Obligations, (B) proceed against or exhaust any other security or collateral
Agent or any other member of the Lender Group may hold, or (C) pursue any other
right or remedy for such Guarantor's benefit, and agrees that Agent may exercise
its rights under this Guaranty without taking any action against any Borrower,
any other guarantor of any Borrower's obligations under the Loan Documents, any
pledgor of collateral for any Person's obligations to any member of the Lender
Group or any other Person in connection with the Guaranteed Obligations, and
without proceeding against or exhausting any security or collateral Lender
holds.

                  (j)      The paragraphs in this Section 10 which refer to
certain sections of the California Civil Code are included in this Guaranty
solely out of an abundance of caution and shall not be construed to mean that
any of the above-referenced provisions of California law are in any way
applicable to this Guaranty.

                  11.      Continuing Guaranty. This Guaranty is a continuing
guaranty of the Guaranteed Obligations and all liabilities to which it applies
or may apply under the terms hereof and shall be conclusively presumed to have
been created in reliance hereon. No failure or delay by Agent or any other
member of the Lender Group in the exercise of any right, power, privilege or
remedy shall operate as a waiver thereof, and no single or partial exercise by
Agent or any other member of the Lender Group of any right or remedy shall
preclude other or further exercise thereof or the exercise of any other right or
remedy and no course of dealing between any Guarantor, Agent or any other member
of the Lender Group shall operate as a waiver thereof. The obligations of each
Guarantor hereunder shall remain in full force and effect without regard to, and
shall not be affected or impaired by the following, any of which may be taken
without the consent of, or notice to, such Guarantor, nor shall any of the
following give such Guarantor any recourse or right of action against Agent or
any other member of the Lender Group:

                  (a)      Any Insolvency Proceeding relating to such Guarantor
or any Borrower, any Affiliate of any Borrower or any other Person, or any
action taken with respect to this Guaranty by any trustee or receiver, or by any
court, in any such proceeding, regardless of whether such Guarantor shall have
had notice or knowledge of any of the foregoing;

                  (b)      Any release or discharge of any Borrower from its
liability under any of the Loan Documents or any release or discharge of any
endorser or guarantor or of any other Person at any time directly or
contingently liable for the Guaranteed Obligations;

                  (c)      Any subordination, compromise, release (by operation
of law or otherwise), discharge, compound, collection or liquidation of any or
all of the Collateral or other property described in any of the Loan Documents
or otherwise in any manner, or any substitution with respect thereto; and

                  (d)      Any acceptance of partial performance of the
Guaranteed Obligations.

         No action by Agent or any other member of the Lender Group permitted
hereunder shall in any way impair or affect this Guaranty. For the purpose of
this Guaranty, the Guaranteed Obligations shall include, without limitation, all
Obligations of the Borrowers to Agent and the other members of the Lender Group
and the Bank Product Providers, notwithstanding any right

                                     - 8 -
<PAGE>

or power of any third party, individually or in the name of the Borrowers, the
Lender Group and the Bank Product Providers, or any of them, to assert any claim
or defense as to the invalidity or unenforceability of any such Obligation, and
no such claim or defense shall impair or affect the obligations of any Guarantor
hereunder.

                  12.      Successors and Assigns.

                  (a)      This Guaranty shall bind and inure to the benefit of
the respective successors and assigns of each of the parties hereto, including,
without limitation, any receiver or trustee of a Guarantor; provided, however,
that no Guarantor may assign this Guaranty or any rights or duties hereunder
without Agent's prior written consent, except as otherwise permitted by Section
7.3 of the Loan Agreement, and any prohibited assignment shall be absolutely
void ab initio. No consent to assignment by Agent shall release any Guarantor
from its obligations to the Lender Group and the Bank Product Providers.

                  (b)      Agent and the other members of the Lender Group may,
to the extent permitted under the Loan Agreement or any other Loan Documents,
and pursuant to the notice provisions thereunder, sell, assign or transfer all
or any part of the Guaranteed Obligations, and in such event each and every
permitted assignee, transferee, or holder of all or any of the Guaranteed
Obligations shall have the right to enforce this Guaranty, by suit or otherwise,
for the benefit of such permitted assignee, transferee or holder as fully as if
such assignee, transferee or holder were herein by name specifically given such
rights, powers and benefits. In the event this Guaranty or the rights hereunder
are so assigned by Agent, the term "Agent", wherever used herein, shall be
deemed to refer to and include any such assignee.

                  13.      Collection Costs and Fees; Notices. This is a
guaranty of payment and not of collection. In the event Agent makes a demand
upon any Guarantor in accordance with the terms of this Guaranty, such Guarantor
shall be held and bound to Agent directly as debtor in respect of the payment of
the amounts hereby guaranteed. The Guarantors shall be jointly and severally
liable for the payment and performance of their obligations hereunder. All costs
and expenses, including, without limitation, reasonable attorneys' fees and
expenses, incurred by Agent in obtaining performance of or collecting payments
due under this Guaranty shall be deemed part of the Guaranteed Obligations
guaranteed hereby. Any notice, demand or other communication that Agent may wish
to give shall be served upon any Guarantor in the fashion prescribed for notices
in the Loan Agreement at the address for such Guarantor given on Exhibit A
attached hereto and the notice so sent shall be deemed to be served as set forth
in the Loan Agreement. All notices or other communication to Agent shall be
served upon Agent at its address set forth in Section 12 of the Loan Agreement
and in the fashion prescribed thereunder.

                  14.      Direct Benefit to Guarantors. Each Guarantor
expressly represents and acknowledges that the loans and any other financial
accommodations by the Lender Group to the Borrowers are and will be of direct
interest, benefit and advantage to such Guarantor.

                  15.      Agent's Right to Inspect. Each Guarantor covenants
and agrees that such Guarantor shall permit, as provided and in the manner
described in the Loan Agreement with respect to Borrowers, representatives of
Agent to visit and inspect properties of such Guarantor, inspect such
Guarantor's books and records and discuss with the principal officers of such

                                     - 9 -
<PAGE>

Guarantor its businesses, assets, liabilities, financial position, results of
operations and business prospects.

                  16.      Representations and Warranties; Covenants.

                  (a)      Each Guarantor hereby represents and warrants to
Agent and the other members of the Lender Group that this Guaranty has been duly
executed and delivered by such Guarantor and constitutes its legal, valid and
binding obligation.

                  (b)      Each Guarantor hereby represents and warrants that
(a) such Guarantor and each Subsidiary of such Guarantor is Solvent and (b) no
transfer of property is being made by such Guarantor or any Subsidiary of such
Guarantor and no obligation is being incurred by such Guarantor or any
Subsidiary of such Guarantor in connection with the transactions contemplated by
this Guaranty or the other Loan Documents with the intent to hinder, delay or
defraud either present or future creditors of such Guarantor or the Subsidiaries
of such Guarantor.

                  (c)      Each Guarantor hereby represents and warrants that
the Reservation Management System is owned by A&M Associates, Inc., a Nevada
corporation, free and clear of liens and encumbrances.

                  (d)      Each Guarantor agrees that, for purposes of this
Guaranty, all of the representations, warranties and covenants made by Borrowers
on behalf of or relating to each "Subsidiary" or any "Guarantor" in the Loan
Agreement shall be deemed incorporated by reference into and made an express
part of this Guaranty, as fully and completely as if set forth expressly herein,
and such Guarantor shall comply herewith and be bound thereby. Each Guarantor
ratifies and affirms each representation and warranty made with respect to it or
on its behalf by any Borrower in the Loan Agreement.

                  17.      CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

                  (a)      THE VALIDITY OF THIS GUARANTY AND THE OTHER LOAN
DOCUMENTS TO WHICH EACH GUARANTOR IS A PARTY, THE CONSTRUCTION, INTERPRETATION,
AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND
THERETO AND THE BENEFICIARIES HEREOF AND THEREOF WITH RESPECT TO ALL MATTERS
ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED
UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

                  (b)      EACH GUARANTOR AGREES THAT ALL ACTIONS OR PROCEEDINGS
ARISING IN CONNECTION WITH THIS GUARANTY AND THE OTHER LOAN DOCUMENTS TO WHICH
SUCH GUARANTOR IS A PARTY SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND
FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK, EXCEPT TO
THE EXTENT THE BANKRUPTCY COURT RETAINS JURISDICTION WITH RESPECT TO THE
REORGANIZATION PLAN; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT
AGAINST ANY COLLATERAL OR OTHER

                                     - 10 -
<PAGE>

PROPERTY MAY BE BROUGHT, AT AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION
WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY BE FOUND. EACH GUARANTOR WAIVES, TO THE EXTENT PERMITTED UNDER
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON
CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
ACCORDANCE WITH THIS SECTION 17.

                  (c)      EACH GUARANTOR HEREBY WAIVES ITS RESPECTIVE RIGHTS TO
A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF
THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS. EACH GUARANTOR REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND
EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS
GUARANTY MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

                  18.      Modification. Neither this Guaranty nor any of its
terms, provisions or conditions may be altered, amended or modified in any way,
except as specifically provided in a written instrument signed by an authorized
officer of Agent and the Guarantors.

                  19.      Cumulative Remedies. Agent's and each other member of
the Lender Group's rights under this Guaranty and the other Loan Documents will
be cumulative and not exclusive of any other right or remedy that Agent or any
other member of the Lender Group may have.

                  20.      Agent. Each reference herein to any right granted to,
benefit conferred upon or power exercisable by the "Agent" shall be a reference
to Agent for itself and for the other members of the Lender Group, and each
action taken or right exercised hereunder shall be deemed to have been so taken
or exercised by Agent for the benefit of and on behalf of the Lender Group.

                  21.      New Subsidiaries. Any new Subsidiary (whether by
acquisition or creation) of a Borrower is required to enter into this Guaranty
by executing and delivering to Agent an instrument in the form of Annex 1
attached hereto. Upon the execution and delivery of Annex 1 by such new
Subsidiary, such Subsidiary shall become a Guarantor hereunder with the same
force and effect as if originally named as a Guarantor herein. The execution and
delivery of any instrument adding an additional Guarantor as a party to this
Guaranty shall not require the consent of any Guarantor hereunder. The rights
and obligations of each Guarantor hereunder shall remain in full force and
effect notwithstanding the addition of any new Guarantor hereunder.

                  22.      Term. Upon indefeasible payment in full in cash of
the Guaranteed Obligations (including (a) either (i) providing cash collateral
to be held by Agent in an amount equal to 105% of the then extant Letter of
Credit Usage, or (ii) causing the original Letters of

                                     - 11 -
<PAGE>

Credit to be returned to Issuing Lender, and (b) providing cash collateral (in
an amount determined by the applicable Bank Product Provider as sufficient to
satisfy the reasonably estimated credit exposure) to be held by Agent for the
benefit of the Bank Product Providers with respect to the then extant Bank
Products Obligations), termination of the Loan Agreement and termination of the
Commitments, in each case to the satisfaction of the Lender Group, this Guaranty
shall terminate and Agent shall take all action reasonably requested by any
Guarantor (at the expense of the Borrowers or such Guarantor) to evidence the
termination of this Guaranty.

                  23.      Severability of Provisions. Each provision of this
Guaranty shall be severable from every other provision of this Guaranty for the
purpose of determining the legal enforceability of any specific provision.

                  24.      Counterparts; Telefacsimile Execution. This Guaranty
may be executed in any number of counterparts and by different parties on
separate counterparts, each of which, when executed and delivered, shall be
deemed to be an original, and all of which, when taken together, shall
constitute but one and the same agreement. Delivery of an executed counterpart
of this Guaranty by telefacsimile shall be equally as effective as delivery of
an original executed counterpart of this Guaranty.

                  25.      Survival of Provisions. All representations,
warranties and covenants of each Guarantor contained herein shall survive the
execution and delivery of this Guaranty.

                  26.      Integration. This Guaranty, together with the other
Loan Documents, reflects the entire understanding of the parties with respect to
the transactions contemplated hereby and shall not be contradicted or qualified
by any other agreement, oral or written, before the date hereof.

                  27.      Section Headings. Headings and numbers have been set
forth herein for convenience only. Unless the contrary is compelled by the
context, everything contained in each Section applies equally to this entire
Guaranty.

                  28.      Voided Payments. Notwithstanding anything herein to
the contrary, to the extent that any Guarantor or any other party makes any
payment on the Guaranteed Obligations that is subsequently invalidated, declared
to be fraudulent, avoidable or preferential, set aside or is required to be
repaid to a trustee, receiver, the estate of such Guarantor or any other party
under any bankruptcy act, state or Federal law, common law or equitable cause
(such payment being hereinafter referred to as a "Voided Payment"), then to the
extent of such Voided Payment that portion of the Guaranteed Obligations that
had been previously satisfied by such Voided Payment shall be revived and
continue in full force and effect as if such Voided Payment had never been made.
In the event that a Voided Payment is sought to be recovered from Agent or any
other member of the Lender Group, an "Event of Default" under the Loan Agreement
shall be deemed to have occurred and to be continuing from the date of such
recovery from Agent or such other member of the Lender Group of such Voided
Payment until the full amount of such Voided Payment is fully and finally
restored to Agent or such other member of the Lender Group and until such time
the provisions of this Guaranty, and the guaranty provided herein, shall be in
full force and effect.

                                     - 12 -
<PAGE>

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

                                    GUARANTORS:

                                    AMERCO REAL ESTATE SERVICES,
                                    INC., a Nevada corporation

                                    TWO PAC COMPANY, a Nevada  corporation

                                    THREE PAC COMPANY, a Nevada
                                    corporation

                                    FOUR PAC COMPANY, a Nevada
                                    corporation

                                    SIX PAC COMPANY, a Nevada
                                    corporation

                                    EIGHT PAC COMPANY, a Nevada
                                    corporation

                                    NINE PAC COMPANY, a Nevada
                                    corporation

                                    ELEVEN PAC COMPANY, a Nevada
                                    corporation

                                    TWELVE PAC COMPANY, a Nevada
                                    corporation

                                    FIFTEEN PAC COMPANY, a Nevada
                                    corporation

                                    SEVENTEEN PAC COMPANY, a Nevada
                                    corporation

                                    NATIONWIDE COMMERCIAL CO., an
                                    Arizona corporation

                                    PF&F HOLDINGS CORPORATION, a
                                    Delaware corporation

                                    By: /s/ Carlos Vizcarra
                                        ___________________________
                                        Carlos Vizcarra, President

                                 SIGNATURE PAGE
                                    GUARANTY

<PAGE>

                                    EMOVE, INC., a Nevada corporation

                                    WEB TEAM ASSOCIATES, INC., a
                                    Nevada corporation

                                    By: /s/ Thomas Tollison
                                        ___________________________
                                        Thomas Tollison, Secretary

                                 SIGNATURE PAGE
                                    GUARANTY

<PAGE>

                                    A & M ASSOCIATES, INC., an Arizona
                                    corporation

                                    U-HAUL SELF-STORAGE
                                    CORPORATION, a Nevada corporation

                                    U-HAUL SELF-STORAGE MANAGEMENT (WPC),
                                    INC., a Nevada corporation

                                    U-HAUL BUSINESS CONSULTANTS,
                                    INC., an Arizona corporation

                                    U-HAUL LEASING & SALES CO., a
                                    Nevada corporation

                                    U-HAUL CO. OF ALABAMA, INC., an
                                    Alabama corporation

                                    U-HAUL CO. OF ARKANSAS, a  Arkansas
                                    corporation

                                    U-HAUL CO. OF CALIFORNIA, a
                                    California corporation

                                    U-HAUL CO. OF COLORADO, a
                                    Colorado corporation

                                    U-HAUL CO. OF CONNECTICUT, a
                                    Connecticut corporation

                                    U-HAUL CO. OF DISTRICT OF  COLUMBIA,
                                    INC., a District of Columbia
                                    corporation

                                    U-HAUL CO. OF GEORGIA, a Georgia
                                    corporation

                                    U-HAUL CO. OF IDAHO, INC., an
                                    Idaho corporation

                                    U-HAUL CO. OF IOWA, INC., an Iowa
                                    corporation

                                    U-HAUL CO. OF ILLINOIS, INC., an
                                    Illinois corporation

                                    U-HAUL CO. OF INDIANA, INC., an
                                    Indiana corporation

                                    U-HAUL CO. OF KANSAS, INC., a
                                    Kansas corporation

                                    U-HAUL CO. OF KENTUCKY, a  Kentucky
                                    corporation

                                 SIGNATURE PAGE
                                    GUARANTY

<PAGE>

                                    U-HAUL CO. OF LOUISIANA, a
                                    Louisiana corporation

                                    U-HAUL CO. OF MASSACHUSETTS
                                    AND OHIO, INC., a Massachusetts
                                    corporation

                                    U-HAUL CO. OF MARYLAND, INC., a
                                    Maryland corporation

                                    U-HAUL CO. OF MAINE, INC., a Maine
                                    corporation

                                    U-HAUL CO. OF MICHIGAN, a  Michigan
                                    corporation

                                    U-HAUL CO. OF MINNESOTA, a
                                    Minnesota corporation

                                    U-HAUL COMPANY OF MISSOURI, a
                                    Missouri corporation

                                    U-HAUL CO. OF MISSISSIPPI, a
                                    Mississippi Corporation

                                    U-HAUL CO. OF MONTANA, INC., a
                                    Montana corporation

                                    U-HAUL CO. OF NORTH CAROLINA,
                                    a North Carolina corporation

                                    U-HAUL CO. OF NORTH DAKOTA, a
                                    North Dakota corporation

                                    U-HAUL CO. OF NEBRASKA, a  Nebraska
                                    corporation

                                    U-HAUL CO. OF NEVADA, INC., a
                                    Nevada corporation

                                    U-HAUL CO. OF NEW HAMPSHIRE,
                                    INC., a New Hampshire corporation

                                    U-HAUL CO. OF NEW JERSEY, INC.,
                                    a New Jersey corporation

                                    U-HAUL CO. OF NEW MEXICO, INC.,
                                    a New Mexico corporation

                                    U-HAUL CO. OF NEW YORK, INC., a
                                    New York corporation

                                    U-HAUL CO. OF OKLAHOMA, INC.,
                                    an Oklahoma corporation

                                 SIGNATURE PAGE
                                    GUARANTY

<PAGE>

                                    U-HAUL CO. OF OREGON, an Oregon
                                    corporation

                                    U-HAUL CO. OF PENNSYLVANIA, a
                                    Pennsylvania corporation

                                    U-HAUL CO. OF RHODE ISLAND, a
                                    Rhode Island corporation

                                    U-HAUL CO. OF SOUTH CAROLINA,
                                    INC., a South Carolina
                                    corporation

                                    U-HAUL CO. OF SOUTH DAKOTA,
                                    INC.,    a South Dakota
                                     corporation

                                    U-HAUL CO. OF TENNESSEE, a
                                    Tennessee corporation

                                    U-HAUL CO. OF TEXAS, a Texas
                                    corporation

                                    U-HAUL CO. OF UTAH, INC., a Utah
                                    corporation

                                    U-HAUL CO. OF VIRGINIA, a Virginia
                                    corporation

                                    U-HAUL CO. OF WASHINGTON, a
                                    Washington corporation

                                    U-HAUL CO. OF WISCONSIN, INC., a
                                    Wisconsin corporation

                                    U-HAUL CO. OF WEST VIRGINIA, a
                                    West Virginia corporation

                                    U-HAUL CO. OF WYOMING, INC., a
                                    Wyoming corporation

                                    By: /s/ Gary V. Klinefelter
                                        _____________________________
                                        Gary V. Klinefelter, Secretary

                                 SIGNATURE PAGE
                                    GUARANTY

<PAGE>

Accepted as of the date first above written:

WELLS FARGO FOOTHILL, INC.,
as Agent

By: /s/ Rhonda P. Noell
    ______________________________

Its: Senior Vice President
     _____________________________

                                 SIGNATURE PAGE
                                    GUARANTY
<PAGE>

                   EXHIBIT A - GUARANTOR ADDRESSES FOR NOTICE

[Guarantor]
c/o AMERCO

1325 Airmotive Way, Suite 100
Reno, Nevada 89502-3239
Attn: Assistant Treasurer
Fax No. 775.688.6338

with copies to:

U-HAUL INTERNATIONAL, INC.
2727 North Central
Phoenix, Arizona  85004
Attn: General Counsel
Fax No. 602.263.6173

and:

SQUIRE, SANDERS & DEMPSEY, L.L.P.
Two Renaissance Square
40 North Central Avenue, Suite 2700
Phoenix, Arizona 85004
Attn: Christopher D. Johnson, Esq.
Fax No. 602.253.8129

<PAGE>

                                     ANNEX 1

                                       to

                                    GUARANTY

                               FORM OF SUPPLEMENT

         THIS SUPPLEMENT NO. __ (this "Supplement") dated as of __________ to
the Guaranty dated as of March 1, 2004 (as amended, restated, supplemented or
otherwise modified from time to time, the "Guaranty"), by each of the parties
listed on the signature pages thereto and those additional entities that
thereafter become parties thereto (each a "Guarantor" and collectively, the
"Guarantors") and Wells Fargo Foothill, Inc., a California corporation, as Agent
for the Lenders (as defined below) ("Agent").

                                   WITNESSETH:

         WHEREAS, pursuant to that certain Loan and Security Agreement dated as
of March 1, 2004 (as the same may be amended, restated, supplemented or
otherwise modified from time to time, the "Loan Agreement"), among Agent, the
lenders from time to time party thereto (the "Lenders") and AMERCO, a Nevada
corporation, and each of its subsidiaries signatory thereto, as borrowers (each,
a "Borrower" and collectively, the "Borrowers"), the Lenders have agreed to make
Advances (as defined in the Loan Agreement), issue Letters of Credit (as defined
in the Loan Agreement) and make other extensions of credit to the Borrowers from
time to time pursuant to the terms and conditions thereof

         WHEREAS, capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to such terms in the Guaranty, and if not
defined therein, in the Loan Agreement; and

         WHEREAS, the Guarantors have entered into the Guaranty in order to
induce the Lenders to make the Loans and other financial accommodations
contained in the Loan Agreement; and

         WHEREAS, pursuant to Section 21 of the Guaranty, each new Subsidiary of
a Borrower or a Guarantor (whether by acquisition or creation) must execute and
deliver the Guaranty, and the execution of the Guaranty by the undersigned new
Guarantor or Guarantors (collectively, the "New Guarantor") may be accomplished
by the execution of this Supplement in favor of Agent; and

         WHEREAS, New Guarantor is a direct or indirect Subsidiary of a Borrower
or a Guarantor, and New Guarantor has determined that it will realize
substantial direct and indirect benefits as a result of the loans and other
financial accommodations extended to the Borrowers pursuant to the Loan
Agreement, and New Guarantor's execution, delivery and performance of this
Guaranty is within New Guarantor's corporate or other purposes;

<PAGE>

         NOW, THEREFORE, for and in consideration of the foregoing and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the New Guarantor hereby agrees as follows:

         SECTION 1. In accordance with Section 21 of the Guaranty, the New
Guarantor, by its signature below, becomes a "Guarantor" under the Guaranty with
the same force and effect as if originally named therein as a "Guarantor" and
the New Guarantor hereby (a) agrees to all of the terms and provisions of the
Guaranty applicable to it as a "Guarantor" thereunder and (b) represents and
warrants that the representations and warranties made by it as a "Guarantor"
thereunder are true and correct on and as of the date hereof. In furtherance of
the foregoing, the New Guarantor, as security for the payment and performance in
full in cash of the Guaranteed Obligations, does hereby guarantee, subject to
the limitations set forth in Section 7 of the Guaranty, to Agent, the full and
prompt payment of the Guaranteed Obligations, including, without limitation, any
interest thereon, plus reasonable attorneys' fees and expenses if the Guaranteed
Obligations represented by the Guaranty are collected by law, through an
attorney-at-law, or under advice therefrom. Each reference to a "Guarantor" in
the Guaranty shall be deemed to include the New Guarantor. The Guaranty is
incorporated herein by reference.

         SECTION 2. The New Guarantor represents and warrants to Agent that this
Supplement has been duly executed and delivered by the New Guarantor and
constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms, except as enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other
similar laws affecting creditors' rights generally and general principles of
equity (regardless of whether such enforceability is considered in a proceeding
at law or in equity).

         SECTION 3. This Supplement may be executed in multiple counterparts,
each of which shall be deemed to be an original, but all such separate
counterparts shall together constitute but one and the same instrument. Delivery
of a counterpart hereof via facsimile transmission shall be as effective as
delivery of a manually executed counterpart hereof.

         SECTION 4. Except as expressly supplemented hereby, the Guaranty shall
remain in full force and effect.

         SECTION 5. This Supplement shall be construed and enforced and the
rights and duties of the parties shall be governed by in all respects in
accordance with the laws and decisions of the State of New York without
reference to the conflicts or choice of law principles thereof.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF, the New Guarantor has duly executed this Supplement
to the Guaranty as of the day and year first above written.

NEW GUARANTOR:                          [Name of New Guarantor]

Address: _________________________      By: ______________________________
         _________________________      Name: ____________________________
         _________________________      Title: ___________________________<PAGE>

                                                                  EXECUTION COPY

                                     AMERCO
             AND THE GUARANTORS LISTED ON THE SIGNATURE PAGES HERETO

                 9.0% SECOND LIEN SENIOR SECURED NOTES DUE 2009

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

                                    INDENTURE

                            Dated as of March 1, 2004

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

                             WELLS FARGO BANK, N.A.,

                                   as Trustee

<PAGE>

                              CROSS-REFERENCE TABLE

<TABLE>
<CAPTION>
  TIA                                                              Indenture
Section                                                             Section
-------                                                          --------------
<S>                                                              <C>
310(a)(1)...................................................        7.10
   (a)(2)...................................................        7.10
   (a)(3)...................................................        7.12
   (a)(4)...................................................        N.A.
   (a)(5)...................................................        7.10
   (b)......................................................        7.03; 7.10
   (c)......................................................        N.A.
311(a)......................................................        7.11
   (b)......................................................        7.11
   (c)......................................................        N.A.
312(a)......................................................        2.05
   (b)......................................................        13.03
   (c)......................................................        13.03
313(a)......................................................        7.06
   (b)(2)...................................................        7.06; 7.07
   (c)......................................................        7.06; 13.02
   (d)......................................................        7.06
314(a)......................................................        4.03
314(a)(4)...................................................        13.05
   (c)(1)...................................................        13.04
   (c)(2)...................................................        13.04
   (c)(3)...................................................        N.A.
   (e)......................................................        13.05
   (f)......................................................        N.A.
315(a)......................................................        7.01
   (b)......................................................        7.05;13.02
   (c)......................................................        7.01
   (d)......................................................        7.01
   (e)......................................................        6.11
316(a) (last sentence)......................................        2.09
   (a)(1)(A)................................................        6.05
   (a)(1)(B)................................................        6.04
   (a)(2)...................................................        N.A.
   (b)......................................................        6.06; 6.07
   (c)......................................................        2.12
317(a)(1)...................................................        6.08
   (a)(2)...................................................        6.09
   (b)......................................................        2.04
318(a)......................................................        13.01
   (b)......................................................        N.A.
   (c)......................................................        13.01
</TABLE>

N.A means Not Applicable

Note: This Cross-Reference Table is not part of this Agreement.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
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ARTICLE I        DEFINITIONS AND INCORPORATION BY REFERENCE..............................       1

    1.01      Definitions................................................................       1

    1.02      Other Definitions..........................................................      30

    1.03      Incorporation by Reference of Trust Indenture Act..........................      31

    1.04      Accounting Terms; GAAP.....................................................      31

    1.05      Code.......................................................................      32

    1.06      Construction...............................................................      32

    1.07      Schedules and Exhibits.....................................................      32

ARTICLE II       THE NOTES...............................................................      32

    2.01      Form and Dating............................................................      32

    2.02      Execution and Authentication...............................................      33

    2.03      Registrar and Paying Agent.................................................      34

    2.04      Paying Agent to Hold Money in Trust........................................      34

    2.05      Holder Lists...............................................................      34

    2.06      Transfer and Exchange......................................................      34

    2.07      Replacement Notes..........................................................      43

    2.08      Outstanding Notes..........................................................      43

    2.09      Treasury Notes.............................................................      43

    2.10      Temporary Notes............................................................      44

    2.11      Cancellation...............................................................      44

    2.12      Defaulted Interest.........................................................      44

    2.13      CUSIP Numbers..............................................................      44

    2.14      Deposit of Moneys..........................................................      45

ARTICLE III      REDEMPTION AND PREPAYMENT...............................................      45

    3.01      Notices to the Trustee.....................................................      45

    3.02      Selection of Notes to Be Redeemed..........................................      45

    3.03      Notice of Redemption.......................................................      46

    3.04      Effect of Notice of Redemption.............................................      46

    3.05      Deposit of Redemption Price................................................      47

    3.06      Notes Redeemed in Part.....................................................      47

    3.07      Optional Redemption........................................................      47
</TABLE>

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    3.08      Mandatory Redemption.......................................................      48

ARTICLE IV       AFFIRMATIVE COVENANTS...................................................      48

    4.01      Payment of Notes...........................................................      48

    4.02      Maintenance of Office or Agency............................................      48

    4.03      Accounting System..........................................................      49

    4.04      Financial Statements, Reports, Certificates................................      49

    4.05      Guarantor Reports..........................................................      52

    4.06      Maintenance of Properties..................................................      53

    4.07      Taxes......................................................................      53

    4.08      Insurance..................................................................      53

    4.09      Location of Equipment......................................................      54

    4.10      Compliance with Laws.......................................................      55

    4.11      Leases.....................................................................      55

    4.12      Existence..................................................................      55

    4.13      Environmental..............................................................      55

    4.14      Real Estate................................................................      56

    4.15      Reorganization Plan........................................................      56

    4.16      Vehicles...................................................................      56

    4.17      Cash Management and Asset Preservation Agreements..........................      57

    4.18      Credit Card Agreements.....................................................      58

    4.19      Disclosure Updates.........................................................      58

    4.20      Material Contracts; Affiliate Contracts....................................      58

    4.21      Employee Benefits..........................................................      58

ARTICLE V        NEGATIVE COVENANTS......................................................      59

    5.01      Indebtedness, Etc..........................................................      59

    5.02      Liens......................................................................      61

    5.03      Restrictions on Fundamental Changes........................................      61

    5.04      Disposal of Assets.........................................................      62

    5.05      Change Name................................................................      62

    5.06      Guarantee..................................................................      62
</TABLE>

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                                  (continued)

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    5.07      Nature of Business.........................................................      63

    5.08      Prepayments and Amendments.................................................      63

    5.09      Change of Control..........................................................      64

    5.10      Ownership of Certain Assets................................................      64

    5.11      Distributions..............................................................      64

    5.12      Accounting Methods.........................................................      65

    5.13      Formation of Subsidiaries; Investments.....................................      65

    5.14      Transactions with Affiliates...............................................      66

    5.15      Suspension.................................................................      67

    5.16      Use of Proceeds............................................................      67

    5.17      Change in Location of Chief Executive Office; Equipment with Bailees.......      67

    5.18      Securities Accounts........................................................      67

    5.19      Financial Covenants........................................................      67

    5.20      Employee Benefits..........................................................      69

    5.21      Sales and Leasebacks.......................................................      70

    5.22      Anti-Terrorism Laws........................................................      70

    5.23      Speculative Transactions...................................................      70

    5.24      Amendment to Certain Agreements............................................      70

    5.25      Waiver of Stay, Extension or Usury Laws....................................      71

ARTICLE VI       DEFAULTS AND REMEDIES...................................................      71

    6.01      Events of Default..........................................................      71

    6.02      Acceleration...............................................................      73

    6.03      Other Remedies.............................................................      74

    6.04      Waiver of Past Defaults....................................................      74

    6.05      Control by Majority........................................................      74

    6.06      Limitation on Suits........................................................      75

    6.07      Rights of Holders of Notes to Receive Payment..............................      75

    6.08      Collection Suit by the Trustee.............................................      75

    6.09      The Trustee May File Proofs of Claim.......................................      76

    6.10      Priorities.................................................................      76
</TABLE>

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    6.11      Undertaking for Costs......................................................      77

    6.12      The Trustee May Enforce Claims Without Possession of Notes.................      77

    6.13      Restoration of Rights and Remedies.........................................      77

    6.14      Rights and Remedies Cumulative.............................................      77

    6.15      Delay or Omission Not Waiver...............................................      78

ARTICLE VII      TRUSTEE.................................................................      78

    7.01      Duties of the Trustee......................................................      78

    7.02      Rights of the Trustee......................................................      79

    7.03      Individual Rights of the Trustee...........................................      81

    7.04      The Trustee's Disclaimer...................................................      81

    7.05      Notice of Defaults.........................................................      81

    7.06      Reports by the Trustee to Holders of the Notes.............................      82

    7.07      Compensation and Indemnity.................................................      82

    7.08      Replacement of the Trustee.................................................      83

    7.09      Successor Trustee by Merger, etc...........................................      85

    7.10      Eligibility; Disqualification..............................................      85

    7.11      Preferential Collection of Claims Against Company..........................      85

    7.12      Additional Co-Collateral Trustees; Separate Collateral Trustees............      85

    7.13      Expenses...................................................................      87

ARTICLE VIII     LEGAL DEFEASANCE AND COVENANT DEFEASANCE................................      88

    8.01      Option to Effect Legal Defeasance or Covenant Defeasance...................      88

    8.02      Legal Defeasance and Discharge.............................................      88

    8.03      Covenant Defeasance........................................................      88

    8.04      Conditions to Legal or Covenant Defeasance.................................      89

    8.05      Deposited Money and U.S. Government Obligations to Be Held in Trust;
              Other Miscellaneous Provisions.............................................      90

    8.06      Repayment to Company.......................................................      91

    8.07      Reinstatement..............................................................      91

ARTICLE IX       AMENDMENT, SUPPLEMENT AND WAIVER........................................      92

    9.01      Without Consent of Holders of Notes........................................      92
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    9.02      With Consent of Holders of Notes...........................................      92

    9.03      Compliance with Trust Indenture Act........................................      94

    9.04      Revocation and Effect of Consents..........................................      94

    9.05      Notation on or Exchange of Notes...........................................      94

    9.06      The Trustee to Sign Amendments, etc........................................      95

    9.07      Effect of Amendment of, Refinancing of or Termination of New Credit
              Agreement..................................................................      95

    9.08      WP Carey Transaction.......................................................      99

ARTICLE X        NOTE GUARANTEES.........................................................      99

    10.01     Guarantee..................................................................      99

    10.02     Limitation on Guarantor Liability..........................................     102

    10.03     Execution and Delivery of Note Guarantee...................................     103

    10.04     Guarantors May Consolidate, etc., on Certain Terms.........................     103

    10.05     Rights under the Note Guarantees...........................................     103

    10.06     Primary Obligations........................................................     104

    10.07     Waiver of Subrogation and Contribution.....................................     104

    10.08     Cumulative Remedies........................................................     104

    10.09     Successors and Assigns.....................................................     105

    10.10     Guarantee by Future Subsidiaries...........................................     105

ARTICLE XI       COLLATERAL..............................................................     105

    11.01     Delivery of Security Documents.............................................     105

    11.02     Recording and Opinions.....................................................     108

    11.03     Possession and Use of Collateral...........................................     108

    11.04     Release and Disposition of Collateral......................................     109

    11.05     Intercreditor Agreement....................................................     112

    11.06     Grant of Security Interest.................................................     112

    11.07     Negotiable Collateral and Chattel Paper....................................     112

    11.08     Collection of Accounts, General Intangibles, and Negotiable Collateral.....     113

    11.09     Delivery of Additional Documentation Required..............................     113

    11.10     Power of Attorney..........................................................     114
</TABLE>

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    11.11     Control Agreements.........................................................     114

    11.12     Commercial Tort Claims.....................................................     114

    11.13     Grants, Rights and Remedies................................................     115

    11.14     Survival...................................................................     117

    11.15     Authorization of Actions to be Taken by the Trustee Under the Collateral
              Documents..................................................................     118

    11.16     Quebec Security............................................................     118

    11.17     Right to Inspect...........................................................     119

ARTICLE XII      SATISFACTION AND DISCHARGE..............................................     120

    12.01     Satisfaction and Discharge.................................................     120

    12.02     Application of Trust Money.................................................     120

ARTICLE XIII     MISCELLANEOUS...........................................................     121

    13.01     Trust Indenture Act Controls...............................................     121

    13.02     Notices....................................................................     121

    13.03     Communication by Holders of Notes with Other Holders of Notes..............     122

    13.04     Certificate and Opinion as to Conditions Precedent.........................     123

    13.05     Statements Required in Certificate or Opinion..............................     123

    13.06     Rules by the Trustee and Agents............................................     123

    13.07     No Personal Liability of Directors, Officers, Employees and Stockholders...     123

    13.08     Confidentiality............................................................     124

    13.09     Governing Law..............................................................     124

    13.10     No Adverse Interpretation of Other Agreements..............................     125

    13.11     Successors.................................................................     125

    13.12     Severability...............................................................     125

    13.13     Counterpart Originals......................................................     125

    13.14     Table of Contents, Headings, etc...........................................     125

    13.15     Supremacy of this Agreement................................................     126

    13.16     Further Assurances.........................................................     126
</TABLE>

                                      -vi-

<PAGE>

EXHIBITS

Exhibit A        FORM OF CLASS A NOTE
Exhibit B        FORM OF CLASS B NOTE
Exhibit C        FORM OF NOTE GUARANTEE
Exhibit D        FORM OF SUPPLEMENTAL INDENTURE

                                      vii

<PAGE>

         INDENTURE dated as of March 1, 2004 (this "Agreement") by and among
AMERCO, a Nevada corporation (the "Company"), the guarantors listed on the
signature pages hereto (collectively, the "Guarantors") and WELLS FARGO BANK,
N.A., as trustee and collateral trustee (the "Trustee").

         The Company, the Guarantors and the Trustee agree as follows for the
benefit of each other and for the equal and ratable benefit of the Holders of
the Notes:

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

         1.01 Definitions.

         "Account Debtor" means any Person who is or who may become obligated
under, with respect to, or on account of, an Account, Chattel Paper, or a
General Intangible.

         "Accounts" means any Person's now owned or hereafter acquired right,
title, and interest with respect to "accounts" as such term is defined in the
Code, and any and all Supporting Obligations in respect thereof.

         "Additional Interest" has the meaning set forth in the Registration
Rights Agreement and/or any additional interest provided for herein or in the
Note Documents, including without limitation, the interest set forth in Section
11.01(e) hereof.

         "Affiliate" means, as applied to any Person, any other Person who,
directly or indirectly, controls, is controlled by, or is under common control
with, such Person. For purposes of this definition, "control" means the
possession, directly or indirectly, of the power to direct the management and
policies of a Person, whether through the ownership of Stock, by contract, or
otherwise; provided, however, that, for purposes of Section 5.14 hereof: (a) any
Person which owns directly or indirectly 10% or more of the securities having
ordinary voting power for the election of directors or other members of the
governing body of a Person or 10% or more of the partnership or other ownership
interests of a Person (other than as a limited partner of such Person) shall be
deemed to control such Person, (b) each director (or comparable manager) of a
Person shall be deemed to be an Affiliate of such Person, and (c) each
partnership or joint venture in which a Person is a partner or joint venturer
shall be deemed to be an Affiliate of such Person. For the avoidance of doubt,
SAC Holding shall not be deemed to be an Affiliate of the Borrowers for purposes
of this Agreement.

         "Affiliate Contracts" means any agreement to which any Note Party is a
party, on the one hand, and any Affiliate of such Note Party is a party, on the
other hand, as such agreements are in place as of the Issue Date.

         "Agency Letter" means that certain letter agreement executed and
delivered by Roberta Holmes, Joan Gibson (or any other person acceptable to
Trustee from time to time having similar employee responsibilities) and Trustee,
as amended, modified or replaced from time to time, the form and substance of
which are reasonably satisfactory to Trustee.

<PAGE>

         "Agent" means any Registrar or Paying Agent.

         "Agreement" means this Indenture, as amended or supplemented from time
to time.

         "Agreement to Indemnify" means that certain agreement to indemnify
entered into by the Company in connection with the execution of the SAC
Participation and Subordination Agreement.

         "amend" means to amend, supplement, restate, amend and restate or
otherwise modify; and "amendment" shall have a correlative meaning.

         "Anti-Terrorism Laws" means any laws relating to terrorism or money
laundering, including Executive Order No. 13224 and the USA Patriot Act.

         "Applicable Laws" means with respect to any Person, those laws, rules,
regulations, statutes and ordinances that apply to that Person or its business,
undertakings, property or securities.

         "Applicable Procedures" means, with respect to any transfer or exchange
of or for beneficial interests in any Global Note, the rules and procedures of
the Depositary that apply to such transfer or exchange.

         "AREC" means Amerco Real Estate Company, a Nevada corporation.

         "Asset" means any asset or property.

         "Assigned Storage Agreements" has the meaning set forth in the
definition of "Synthetic Lease Collateral".

         "Availability" means, as of any date of determination, if such date is
a Business Day, and determined at the close of business on the immediately
preceding Business Day, if such date of determination is not a Business Day, the
amount that the Borrowers are entitled to borrow as Advances (as defined in the
New Credit Agreement) under Section 2.1 of the New Credit Agreement (after
giving effect to all then outstanding Obligations (as defined in the New Credit
Agreement) (other than Bank Product Obligations, as defined in the New Credit
Agreement) and all sublimits and reserves applicable under the New Credit
Agreement).

         "Bank Lenders" means the "Lenders" as defined in the New Credit
Agreement.

         "Bank Lenders' Agent" means Wells Fargo Foothill, Inc., a California
corporation, solely in its capacity as administrative agent and collateral agent
for the Bank Lenders under the New Credit Agreement, and any successor thereto.

         "Bank Lenders' Collateral Agent" means the Bank Lenders' Agent, in its
capacity as collateral agent for the benefit of the Bank Lenders under the
Intercreditor Agreement, or any successor thereto.

                                       2

<PAGE>

         "Bankruptcy Code" means Title 11 of the United States Code; provided
that when the context so requires with respect to the Canadian Subsidiaries,
"Bankruptcy Code" shall mean the Bankruptcy and Insolvency Act (Canada) or the
Companies' Creditors Arrangement Act (Canada), in any case, as in effect from
time to time.

         "Bankruptcy Law" means the Bankruptcy Code or any similar federal,
provincial, or state law for the relief of debtors.

         "Benefit Plan" means a "defined benefit plan" (as defined in Section
3(35) of ERISA) for which any Borrower or any Subsidiary or ERISA Affiliate of
any Note Party has been an "employer" (as defined in Section 3(5) of ERISA)
within the past 6 years.

         "Blocked Person" means:

                  (a) a Person that is listed in the annex to, or is otherwise
         subject to the provisions of, Executive Order No. 13224;

                  (b) a Person owned or controlled by, or acting for or on
         behalf of, any Person that is listed in the annex to, or is otherwise
         subject to the provisions of, Executive Order No. 13224;

                  (c) a Person or entity with which any bank or other financial
         institution is prohibited from dealing or otherwise engaging in any
         transaction by any Anti-Terrorism Law;

                  (d) a Person or entity that commits, threatens or conspires to
         commit or supports "terrorism" as defined in Executive Order No. 13224;

                  (e) a Person or entity that is named as a "specially
         designated national" on the most current list published by OFAC at its
         official website or any replacement website or other replacement
         official publication of such list; or

                  (f) a Person or entity who is affiliated with a Person or
         entity listed above.

         "Board of Directors" means the board of directors (or comparable
managers) of the Company or any committee thereof duly authorized to act on
behalf thereof.

         "Books" means any Person's now owned or hereafter acquired books and
records (including all of its Records indicating, summarizing, or evidencing its
assets (including the Collateral) or liabilities, all of any Person's Records
relating to its or their business operations or financial condition, and all of
its goods or General Intangibles related to such information).

         "Borrowers" means the "Borrowers" under the New Credit Agreement,
including as of the Issue Date the Company, AMERCO Real Estate Company, a Nevada
corporation, AMERCO Real Estate Company of Alabama, Inc., an Alabama
corporation, AMERCO Real Estate Company of Texas, Inc., a Texas corporation,
Five PAC Company, a Nevada corporation, Fourteen PAC Company, a Nevada
corporation, One PAC Company, a Nevada corporation, Seven PAC Company, a Nevada
corporation, Sixteen PAC Company, a Nevada corporation, Ten

                                       3

<PAGE>

PAC Company, a Nevada corporation, U-Haul Co. of Alaska, an Alaska corporation,
U-Haul Co. of Arizona, and Arizona corporation, U-Haul Co. of Florida, a Florida
corporation, U-Haul of Hawaii, Inc., a Hawaii corporation, U-Haul International,
Inc., a Nevada corporation, and Yonkers Property Corporation, a New York
corporation. (Such Borrowers are referred to hereinafter each individually as a
"Borrower".)

         "Business Day" means a day other than a Saturday, Sunday or other day
on which banking institutions in New York, New York are authorized or required
by law to close.

         "Canadian Income Tax Act" means the Income Tax Act (Canada), R.S.C.
1985 C.1 (5th Supp.), as amended from time to time.

         "Canadian Subsidiaries" means, collectively, U-Haul (Canada) and U-Haul
Inspections Ltd., a British Columbia corporation.

         "Capital Expenditures" means, with respect to any Person for any
period, gross expenditures that are capital expenditures as determined in
accordance with GAAP for such period, whether such expenditures are paid in cash
or financed; minus lease funding received pursuant to operating and Capital
Lease commitments for such period; minus Net Dispositions for such period;
provided, however, Net Dispositions from the WP Carey Transaction received after
the Issue Date but prior to March 31, 2004, shall be deemed received during
fiscal year 2005.

         "Capital Lease" means a lease that is required to be capitalized for
financial reporting purposes in accordance with GAAP.

         "Capitalized Lease Obligation" means that portion of the obligations
under a Capital Lease that is required to be capitalized in accordance with
GAAP.

         "Cash Equivalents" means (a) marketable direct obligations issued or
unconditionally guaranteed by the United States or issued by any agency thereof
and backed by the full faith and credit of the United States, in each case
maturing within 1 year from the date of acquisition thereof, (b) marketable
direct obligations issued by any state of the United States or any political
subdivision of any such state or any public instrumentality thereof maturing
within 1 year from the date of acquisition thereof and, at the time of
acquisition, having one of the two highest ratings obtainable from either
Standard & Poor's Rating Group ("S&P") or Moody's Investors Service, Inc.
("Moody's"), (c) commercial paper maturing no more than 270 days from the date
of creation thereof and, at the time of acquisition, having a rating of at least
A-1 from S&P or at least P-1 from Moody's, (d) certificates of deposit or
bankers' acceptances maturing within 1 year from the date of acquisition thereof
issued by any bank organized under the laws of the United States or any state
thereof having at the date of acquisition thereof combined capital and surplus
of not less than $250,000,000, (e) demand Deposit Accounts maintained with any
bank organized under the laws of the United States or any state thereof so long
as the amount maintained with any individual bank is less than or equal to
$100,000 and is insured by the Federal Deposit Insurance Corporation, and (f)
Investments in money market funds substantially all of whose assets are invested
in the types of assets described in clauses (a) through (e) above.

         "Certificate(s) of Title" means a certificate evidencing the title to a
Vehicle.

                                       4

<PAGE>

         "Change of Control" means (a) any "person" or "group" (within the
meaning of Sections 13(d) and 14(d) of the Exchange Act), other than Permitted
Holders, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act), directly or indirectly, of 30%, or more, of the Stock of the
Company having the right to vote for the election of members of the Board of
Directors, (b) a majority of the members of the Board of Directors do not
constitute Continuing Directors, (c) any Borrower ceases to own, directly or
indirectly, and control 100% of the outstanding capital Stock of any of its
Subsidiaries extant as of the Issue Date unless the disposition, liquidation or
merger of such Subsidiary was permitted by Section 5.03 hereof, (d) (i) all or
substantially all of the assets of the Company and its Restricted Subsidiaries
(as defined in the New AMERCO Note Indenture) are sold or otherwise transferred
to any Person other than a Wholly-Owned Restricted Subsidiary (as defined in the
New AMERCO Notes Indenture) that is a Note Party or (ii) the Company
consolidates or merges with or into another Person or any Person consolidates or
merges with or into the Company, in either case under this clause (d), in one
transaction or a series of related transactions in which immediately after the
consummation thereof Persons owning voting stock representing in the aggregate a
majority of the total voting power of the voting stock of the Company
immediately prior to such consummation do not own voting stock representing a
majority of the total voting power of the voting stock of the Company or the
surviving or transferee Person, or (e) the Company shall adopt a plan of
liquidation or plan of dissolution or any such plan shall be approved by the
stockholders of the Company.

         "Chapter 11 Case" means Case NO. BK-03-52103-GWZ in the United States
Bankruptcy Court for the District of Nevada.

         "Chattel Paper" means any Person's now owned or hereafter acquired
right, title and interest in respect of "chattel paper" as such term is defined
in the Code, including, without limitation, any tangible or electronic chattel
paper.

         "Class A Definitive Note" means one or more Definitive Notes that do
not bear and are not required to bear the Private Placement Legend substantially
in the form of Exhibit A.

         "Class A Global Note" means a permanent global Note substantially in
the form of Exhibit A attached hereto that bears the Global Note Legend and that
has the "Schedule of Exchanges of Interests in the Global Note" attached
thereto, and that is deposited with or on behalf of and registered in the name
of the Depositary, representing a series of Notes that do not bear the Private
Placement Legend.

         "Class A Notes" means the $120.0 million of 9.0% Second Lien Senior
Secured Notes due 2009 to be issued on the Issue Date in accordance with this
Agreement and pursuant to Section 1145 of the Bankruptcy Code, and any
additional Class A Notes issued in the Exchange Offer pursuant to Section
2.06(f) hereof.

         "Class B Definitive Note" means a Definitive Note bearing the Private
Placement Legend substantially in the form of Exhibit B.

         "Class B Global Note" means a global Note substantially in the form of
Exhibit B attached hereto that bears the Private Placement Legend and that has
the "Schedule of Exchanges

                                       5

<PAGE>

of Interests in the Global Note" attached thereto, and that is deposited with or
on behalf of and registered in the name of Depository, representing the series
of Class B Notes.

         "Class B Notes" means the $80.0 million of 9.0% Second Lien Senior
Secured Notes due 2009 to be issued on the Issue Date in accordance with this
Agreement and pursuant to Regulation D of the Securities Act.

         "Class B Purchase Agreement" means the Note Purchase Agreement, dated
as of March 1, 2004, by and among the Company, the Guarantors and the purchasers
of the Class B Notes, as such agreement may be amended, modified or supplemented
from time to time.

         "Code" means the New York Uniform Commercial Code, as in effect from
time to time.

         "Co-Collateral Trustee" means a Person acting jointly with the
Collateral Trustee as collateral agent under this Agreement, the Intercreditor
Agreement and the Security Documents.

         "Collateral" means all of each Note Party's now owned or hereafter
acquired right, title, and interest in and to each of the following:

                  (a) Accounts,

                  (b) Books,

                  (c) Chattel Paper,

                  (d) Commercial Tort Claims,

                  (e) Deposit Accounts,

                  (f) Equipment,

                  (g) General Intangibles,

                  (h) Inventory,

                  (i) Investment Property,

                  (j) Negotiable Collateral,

                  (k) Real Property Collateral,

                  (l) Supporting Obligations,

                  (m) money, cash, Cash Equivalents, or other assets of each
such Note Party that now or hereafter come into the possession, custody, or
control of any Bank Lender, the Bank Lenders' Agent, the Trustee or any Holder
and are held for the benefit of the Holders,

                  (n) the proceeds and products, whether tangible or intangible,
of any of the foregoing, including proceeds of insurance covering any or all of
the foregoing, and any and all

                                       6

<PAGE>

Accounts, Books, Chattel Paper, Deposit Accounts, Equipment, General
Intangibles, Inventory, Investment Property, Negotiable Collateral, Real
Property, Supporting Obligations, money, deposit accounts, or other tangible or
intangible property resulting from the sale, exchange, collection, or other
disposition of any of the foregoing, or any portion thereof or interest therein,
and the proceeds thereof, and

                  (o) to the extent not included in the foregoing, all other
personal property of the Note Parties of any kind or description (including,
without limitation, with respect to either Canadian Guarantor, all "personal
property" (as defined in the PPSA) of such party and all "proceeds" (as defined
in the PPSA) thereof);

provided, however, that the Excluded Assets shall not be included in the
Collateral.

         "Collateral Access Agreement" means a landlord waiver, bailee waiver,
mortgagee waiver, or acknowledgement of any lessor, warehouseman, processor,
mortgagee, assignee, or other Person in possession of, having a Lien upon, or
having rights or interests in the Equipment or Inventory, in each case in the
same form and substance as delivered to the Bank Lenders' Agent under the New
Credit Agreement, with such modifications as are necessary to reflect that the
Trustee's Liens in the Collateral are security interests, second in priority
only to the first priority security interests granted to Bank Lenders' Agent
pursuant to the New Credit Agreement and the other Loan Documents (as defined in
the New Credit Agreement).

         "Collateral Trustee" means Wells Fargo Bank, N.A., a national banking
association, in its capacity as collateral agent under this Agreement, the
Intercreditor Agreement and the Security Documents for the benefit of the
Holders, or any successor thereto.

         "Collections" means all cash, checks, notes, instruments, and other
items of payment (including insurance proceeds, proceeds of cash sales, rental
proceeds, and tax refunds) of the Borrowers.

         "Commercial Tort Claims" means any Person's now owned or hereafter
acquired right, title and interest with respect to any "commercial tort claim"
as such term is defined in the Code, including, without limitation, the PWC
Litigation.

         "Company" means AMERCO, a Nevada corporation, and any and all
successors thereto and not any of its Subsidiaries.

         "Confirmation Order" means the order entered in the Chapter 11 Case on
February 20, 2004, confirming the Reorganization Plan.

         "Consolidated" means, with respect to the Company, the consolidation of
the income statement accounts of the Company's Subsidiaries with those of the
Company, all in accordance with GAAP, provided, that "consolidated" will not
include (a) the consolidation of the accounts of SAC Holding with the accounts
of the Company but for the inclusion of interest income earned on the Junior
Notes and management fees earned by U-Haul related to properties it manages that
are owned by SAC Holding; and (b) the consolidation of the accounts of the
Insurance Subsidiaries with the accounts of the Company but for the inclusion of
pre-tax net income earned by (or losses of) the Insurance Subsidiaries.

                                       7

<PAGE>

         "Consolidated Cash Interest Expense" means, for any period, the
Consolidated Interest Expense of the Company paid in cash for such period
(including, without limitation, the Unused Line Fees (as defined in the New
Credit Agreement), the interest component of any deferred payment obligations,
the interest component of all payments associated with Capitalized Lease
Obligations, commissions, discounts and other fees and charges incurred in
respect of a Letter of Credit (as defined in the New Credit Agreement) or
bankers' acceptance financing and net payments pursuant to Hedge Agreements),
provided that Consolidated Cash Interest Expense shall exclude interest expense
accrued or capitalized during such period.

         "Consolidated Charges" means, for any period, any extraordinary and/or
non-recurring Consolidated charges of the Company, representing restructuring
charges, payments to restructuring financial advisors and legal counsel,
non-cash impairment of asset charges and other non-cash write-offs that were
deducted in arriving at Consolidated Net Income; provided, however, (a) the
aggregate amount of Consolidated Charges calculated for the 3-month period
ending March 31, 2004 shall not exceed $75,000,000, (b) the aggregate amount of
Consolidated Charges calculated for the 3-month period ending June 30, 2004
shall not exceed $3,800,000, (c) the aggregate amount of Consolidated Charges
calculated for the 6-month period ending September 30, 2004 shall not exceed
$7,500,000, (d) the aggregate amount of Consolidated Charges calculated for the
9-month period ending December 31, 2004 shall not exceed $11,300,000, and (e)
the aggregate amount of Consolidated Charges calculated for the 12-month period
ending March 31, 2005 and as of the end of each fiscal quarter thereafter shall
not exceed $15,000,000.

         "Consolidated EBITDA" means, for any period, the sum, without
duplication, of (i) Consolidated Net Income for such period; plus (ii)
Consolidated Interest Expense for such period; plus (iii) provision for
Consolidated taxes of the Company based on income or profits for such period (to
the extent such income or profits were included in computing the Consolidated
Net Income for such period); plus (iv) Consolidated depreciation, amortization
and other non-cash expense of the Company; plus (v) Consolidated Charges in each
case that were deducted in determining the Consolidated Net Income for such
period; minus (vi) pre-tax net income of the Insurance Subsidiaries; plus (vii)
losses of the Insurance Subsidiaries; minus (viii) gains from sales of any Real
Property; plus (ix) losses from sales of any Real Property minus (x) to the
extent the Synthetic Leases (including any refinancings, in whole or in part
thereof), or any of them, are treated as Capital Leases in accordance with the
requirements of GAAP, the amounts of principal and interest due and paid under
such Synthetic Leases for such period, as such principal amounts are set forth
on Schedule 7.8(a) of the New Credit Agreement as of the Issue Date.

         "Consolidated Interest Expense" means, for any period, the Consolidated
interest expense of the Company for such period, whether paid, accrued or
capitalized (including, without limitation, amortization of original issue
discount, non-cash interest payments, the Unused Line Fees (as defined in the
New Credit Agreement), the interest component of any deferred payment
obligations, the interest component of all payments associated with Capitalized
Lease Obligations, commissions, discounts and other fees and charges incurred in
respect of a Letter of Credit (as defined in the New Credit Agreement) or
bankers' acceptance financing and net payments pursuant to Hedge Agreements).

                                       8

<PAGE>

         "Consolidated Net Income" means, for any period, the net income of the
Company for such period, determined in accordance with GAAP, provided that such
net income is calculated pursuant to the income statement presentation set forth
in the definition of "Consolidated".

         "Continuing Director" means (a) any member of the Board of Directors
who was a director (or comparable manager) of the Company on the Issue Date, and
(b) any individual who becomes a member of the Board of Directors after the
Issue Date if such individual was appointed or nominated for election to the
Board of Directors by a majority of the Continuing Directors, but excluding any
such individual originally proposed for election in opposition to the Board of
Directors in office at the Issue Date in an actual or threatened election
contest relating to the election of the directors (or comparable managers) of
the Company (as such terms are used in Rule 14a-11 under the Exchange Act) and
whose initial assumption of office resulted from such contest or the settlement
thereof.

         "Control Agreement" means a control agreement executed and delivered by
the Company or one of its Subsidiaries, the Trustee, and the applicable
securities intermediary with respect to a Securities Account or a bank with
respect to a Deposit Account, in the same form and substance delivered to the
Bank Lenders' Agent under the New Credit Agreement, with such modifications as
are necessary to reflect that the Trustee's Liens in the Collateral subject
thereto are security interests, second in priority only to the first priority
security interests granted to Bank Lenders' Agent pursuant to the New Credit
Agreement and the other Loan Documents (as defined in the New Credit Agreement).

         "Corporate Trust Office of the Trustee" shall be at the address of the
Trustee specified in Section 13.02 hereof or such other address as to which the
Trustee may give notice to the Company.

         "Copyright Security Agreement" means that certain copyright security
agreement executed and delivered by each of the Note Parties that own copyrights
as of the Issue Date and the Trustee, in the same form and substance as
delivered to the Bank Lenders' Agent under the New Credit Agreement, with such
modifications as are necessary to reflect that the Trustee's Liens in the
Collateral subject thereto are security interests, second in priority only to
the first priority security interests granted to Bank Lenders' Agent pursuant to
the New Credit Agreement and the other Loan Documents (as defined in the New
Credit Agreement).

         "Custodian" means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

         "DDA" means any checking or other demand deposit account maintained by
any Borrower.

         "Dealer List" means, at any date, a report of the name and location of
all U-Haul Dealers as of such date.

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

                                       9

<PAGE>

         "Default" means any event, condition, or default that, with the giving
of notice, the passage of time or both, would be an Event of Default.

         "Definitive Note" means a certificated Note registered in the name of
the Holder thereof and issued in accordance with Section 2.06 hereof,
substantially in the form of Exhibit A or Exhibit B hereto, as applicable,
except that such Note shall not bear the Global Note Legend and shall not have
the "Schedule of Exchanges of Interests in the Global Note" attached thereto.

         "Deposit Accounts" means any Person's now owned or hereafter acquired
right, title and interest with respect to any "deposit account" as such term is
defined in the Code, including, without limitation, any DDAs.

         "Depositary" means, with respect to the Notes issuable or issued in
whole or in part in global form, the Person specified in Section 2.03 hereof as
the Depositary with respect to the Notes, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Agreement.

         "Depositary Custodian" means the Trustee, as custodian for the
Depositary with respect to the Notes in global form, or any successor entity
thereto.

         "DIP Loan Agreement" means that certain Senior Secured, Super-Priority
Debtor-in-Possession Loan and Security Agreement, dated as of August 15, 2003,
among the Company, AREC, Wells Fargo Foothill, Inc., as agent, and the various
lenders party thereto, as amended by that certain First Amendment to Loan and
Security Agreement dated as of September 23, 2003.

         "DIP Obligations" means, as of any date of determination, all
Obligations (as defined in the DIP Loan Agreement) outstanding under the DIP
Loan Agreement, including any Advances (as defined in the DIP Loan Agreement)
outstanding (including, without limitation, the face amount of any outstanding
Letter of Credit issued pursuant to the DIP Loan Agreement), the Term Loan (as
defined in the DIP Loan Agreement) and accrued interest, fees and other charges
payable thereunder.

         "Dollars" or "$" means United States dollars.

         "Dormant Subsidiaries" means, collectively, EJOS, Inc., an Arizona
corporation, Japal, Inc., a Nevada corporation, M.V.S., Inc., a Nevada
corporation, Pafran, Inc., a Nevada corporation, Sophmar, Inc., a Nevada
corporation, and Picacho Peak Investments Co, a Nevada corporation.

         "ECF Carry Forward Amount" means, at any time of determination, (a)(i)
as of the Issue Date through September 30, 2004, $3,335,000, (ii) as of October
1, 2004 through March 30, 2005, 50% of Borrowers' Excess Cash Flow (whether
positive or negative) for the period commencing on April 1, 2004 and ending on
September 30, 2004, based on unaudited financial statements provided to the
Trustee pursuant to Section 4.04(a), or (iii) as of March 31, 2005 and at all
times thereafter, 50% of Borrowers' Excess Cash Flow for the fiscal year ending
March 31, 2005 (whether positive or negative), based on the audited financial
statements provided to the Trustee pursuant to Section 4.04(b), plus Borrowers'
Excess Cash Flow for each fiscal year thereafter (to the extent positive) for
which audited financial statements have been provided to

                                       10

<PAGE>

the Trustee pursuant to Section 4.04(b), minus (b) the sum of (i) the aggregate
amount of dividends paid in arrears on account of the preferred stock of the
Company on or after January 1, 2004 made from Borrowers' Excess Cash Flow
pursuant to clause (c) of Section 5.11, and (ii) the aggregate amount of
prepayments of the principal amount of the Indebtedness under the New AMERCO
Notes and the Notes made from Borrowers' Excess Cash Flow after the Issue Date
pursuant to clause (2) of Section 5.08(a)(vi), and (iii) the aggregate amount of
prepayments of the principal amount of the Indebtedness under the Synthetic
Leases made from Borrower's Excess Cash Flow after the Issue Date pursuant to
clause (3) of Section 5.08(a)(vii), in each case on a cumulative basis.

         "Effective Date" has the meaning set forth in the Reorganization Plan.

         "Environmental Actions" means any complaint, summons, citation, notice,
directive, order, claim, litigation, investigation, judicial or administrative
proceeding, judgment, letter, or other communication from any Governmental
Authority, or any third party involving violations of Environmental Laws or
releases of Hazardous Materials from (a) any assets, properties, or businesses
of any Borrower or any predecessor in interest, (b) from adjoining properties or
businesses, or (c) from or onto any facilities which received Hazardous
Materials generated by any Borrower or any predecessor in interest.

         "Environmental Indemnity Agreements" means, collectively, those certain
environmental indemnity agreements executed and delivered by Note Parties in
favor of the Trustee, in the same form and substance as delivered to Bank
Lenders' Agent under the New Credit Agreement.

         "Environmental Law" means any applicable federal, state, provincial,
foreign or local statute, law, rule, regulation, ordinance, code, binding and
enforceable guideline, binding and enforceable written policy, or rule of common
law now or hereafter in effect and in each case as amended, or any judicial or
administrative interpretation thereof, including any judicial or administrative
order, consent decree or judgment, to the extent binding on Borrowers, relating
to the environment, employee health and safety, or Hazardous Materials,
including CERCLA; RCRA; the Federal Water Pollution Control Act, 33 U.S.C.
Section 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C. Section 2601
et seq.; the Clean Air Act, 42 U.S.C. Section 7401 et seq.; the Safe Drinking
Water Act, 42 U.S.C. Section 3803 et seq.; the Oil Pollution Act of 1990, 33
U.S.C. Section 2701 et seq.; the Emergency Planning and the Community
Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Hazardous
Material Transportation Act, 49 U.S.C. Section 1801 et seq.; and the
Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq. (to the extent
it regulates occupational exposure to Hazardous Materials); any state and local
or foreign counterparts or equivalents, in each case as amended from time to
time.

         "Environmental Liabilities and Costs" means all liabilities, monetary
obligations, Remedial Actions, losses, damages, punitive damages, consequential
damages, treble damages, costs and expenses (including all reasonable fees,
disbursements and expenses of counsel, experts, or consultants and costs of
investigation and feasibility studies), fines, penalties, sanctions, and
interest incurred as a result of any claim or demand by any Governmental
Authority or any third party, and which relate to an Environmental Action.

                                       11

<PAGE>

         "Environmental Lien" means any Lien in favor of any Governmental
Authority for Environmental Liabilities and Costs.

         "Equipment" means any Person's now owned or hereafter acquired right,
title, and interest with respect to equipment, machinery, machine tools, motors,
furniture, furnishings, fixtures, Vehicles, tools, parts, goods (other than
consumer goods, farm products, or Inventory), wherever located, including all
attachments, accessories, accessions, replacements, substitutions, additions,
and improvements to any of the foregoing.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and any successor statute thereto.

         "ERISA Affiliate" means (a) any Person subject to ERISA whose employees
are treated as employed by the same employer as the employees of a Borrower or a
Subsidiary of a Borrower under IRC Section 414(b), (b) any trade or business
subject to ERISA whose employees are treated as employed by the same employer as
the employees of a Borrower or a Subsidiary of Borrower under IRC Section
414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the
IRC, any organization subject to ERISA that is a member of an affiliated service
group of which a Borrower or a Subsidiary of Borrower is a member under IRC
Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section
412 of the IRC, any Person subject to ERISA that is a party to an arrangement
with a Borrower or a Subsidiary of a Borrower and whose employees are aggregated
with the employees of a Borrower or a Subsidiary of a Borrower under IRC Section
414(o).

         "Event of Default" has the meaning set forth in Section 6.01.

         "Excess Availability" means the amount, as of the date any
determination thereof is to be made, equal to the difference between (a) the
lesser of (i) the Borrowing Base (as defined in the New Credit Agreement) or
(ii) the sum of (1) the Maximum Revolver Amount (as defined in the New Credit
Agreement) plus (2) the Term Loan Amount (as defined in the New Credit
Agreement), and (b) the Obligations (as defined in the New Credit Agreement)
then outstanding.

         "Excess Availability Test" means, at the time of payment of any
Indebtedness under the New AMERCO Notes or Notes pursuant to Section
5.8(a)(v)(ii) or at the time of declaration or payment of any dividend or
dividend in arrears pursuant to Section 5.11(b) or Section 5.11(c),
respectively, (a) Borrowers' Excess Availability plus Qualified Cash (as
reported to the Bank Lenders' Agent by Borrowers pursuant to Section 6.2(a) of
the New Credit Agreement), exceeds (i) $35,000,000 plus (ii) the amount of such
dividend or debt payment as of the date of such payment and as of the month end
for each of the preceding consecutive 12 fiscal months immediately preceding
such payment date, and (b) after giving effect to such payment, Borrowers'
Excess Availability plus Qualified Cash, as reflected in the Projections (as
defined in the New Credit Agreement) most recently delivered to the Trustee
pursuant to Section 4.04(c) hereof, is projected to exceed $35,000,000 for the
month end of each of the 12 fiscal months immediately succeeding such payment
date.

         "Excess Cash Flow" means, for the fiscal year most recently ended prior
to any determination date and based upon the audited financial statements
delivered by Borrowers

                                       12

<PAGE>

pursuant to Section 4.04(b), (a) Consolidated EBITDA, minus (b) the sum of (i)
Consolidated Cash Interest Expense, plus (ii) Capital Expenditures permitted
hereunder, plus (iii) payments of the principal amount of Funded Debt (other
than payments of principal made under the revolving credit facility contained in
the New Credit Agreement and advances and prepayments of the Notes and the New
AMERCO Notes paid from the Borrowers' Excess Cash Flow pursuant to clause (2) of
Section 5.08(a)(vi) hereof) paid during such period and other permitted debt
service payments made, plus (v) federal, state and local income taxes paid in
cash, minus (c) the aggregate amount of dividends paid on account of the Stock
of the Company during such fiscal year pursuant to clause (b) of Section 5.11.

         "Exchange Act" means the U.S. Securities Exchange Act of 1934, as
amended from time to time.

         "Exchange Notes" means the Class A Notes issued in the Exchange Offer
pursuant to Section 2.06(f) hereof.

         "Exchange Offer" has the meaning set forth in the Registration Rights
Agreement.

         "Exchange Offer Registration Statement" has the meaning set forth in
the Registration Rights Agreement.

         "Excluded Assets" means (a) the Synthetic Leases and the Synthetic
Lease Collateral, (b) the Junior Notes and the interest accrued thereon and
proceeds received from the monetization of Junior Notes, (c) all Real Property
set forth on Schedule E-1 of the New Credit Agreement under contract of sale as
of the Issue Date and proceeds received from any such sale, (d) all Real
Property subject to a first priority Lien of Oxford as of the Issue Date, as set
forth on Schedule E-1 of the New Credit Agreement, (e) all Real Property
designated as "Surplus Real Property" as of the Issue Date, as set forth on
Schedule E-1 of the New Credit Agreement and any proceeds received from any sale
of such Real Property, (f) the Company's Stock of the Insurance Subsidiaries and
the proceeds received from the monetization of such Stock, (g) proceeds in
excess of $50,000,000 from any settlement, judgment or other recovery from the
PWC Litigation, (h) Vehicles (including any tow dolly or auto transport) that,
as of the Issue Date are or thereafter become, and remain subject to, a TRAC
Lease Transaction, and proceeds from the sale of such Vehicles to the extent no
Note Party has any rights to or interest in such proceeds, except to the extent
such Vehicles become subject to the Trustee's Liens pursuant to Section 5.04
hereof, (i) Vehicles (including any tow dolly or auto transport) that become and
remain subject to the PMCC Leveraged Lease and proceeds from the sale of such
Vehicles to the extent no Note Party has any rights to or interest in such
proceeds, and (j) the cash collateral accounts set forth on Schedule 2.7(e) to
the New Credit Agreement. With respect to the Excluded Assets set forth in
clause (g) above, it is hereby acknowledged and agreed that attorneys' fees and
costs, court costs, expert witness fees and expenses and other similar costs and
expenses paid or payable by the Company with respect to the PWC Litigation or
any current or future taxes paid or payable by the Company with respect to
settlement payments or damage awards (after taking into account any available
tax credits or deductions and any tax sharing arrangements) with respect to the
PWC Litigation shall not be deducted from or otherwise offset against the
Trustee's Collateral.

                                       13

<PAGE>

         "Executive Order No. 13224" means Executive Order No. 13224 on
Terrorist Financing, effective September 24, 2001, as the same has been, or
shall hereafter be, renewed, extended, amended or replaced.

         "Fair Market Valuation" means the most recent fair market valuation
acceptable to the Bank Lenders by a third party appraiser acceptable to the Bank
Lenders of the Real Property Collateral which is subject to a valid and
perfected Trustee's Lien (second only to the first priority security interests
granted to Bank Lenders' Agent pursuant to the New Credit Agreement and the
other Loan Documents (as defined in the New Credit Agreement)), subject only to
Permitted Liens of the type described in clauses (a), (b), (c), (f), (j), (k),
(l) and (n) of the definition thereof.

         "Family Member" means, with respect to any individual, spouse and
lineal descendants (including children and grandchildren by adoption) of such
individual, the spouses or each such lineal descendants, and the lineal
descendants of such Persons.

         "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.

         "FEIN" means Federal Employer Identification Number.

         "Funded Debt" means without double-counting, with respect to the
Company on a Consolidated basis, as of any date of determination, all
obligations of the type described in clauses (a) through (c) and clause (e) of
the definition of "Indebtedness" and clause (f) of such definition with respect
to any guaranty of any of the foregoing, and specifically including, without
limitation, the amount of outstanding Obligations hereunder.

         "GAAP" means generally accepted accounting principles as in effect from
time to time in the United States, consistently applied.

         "General Intangibles" means any Person's now owned or hereafter
acquired right, title, and interest with respect to general intangibles (as that
term is defined in the Code), including payment intangibles, contract rights,
rights to payment, rights arising under common law, statutes, or regulations,
choses or things in action, goodwill, patents, trade names, trademarks,
servicemarks, copyrights, blueprints, drawings, purchase orders, customer lists,
monies due or recoverable from pension funds, route lists, rights to payment and
other rights under any royalty or licensing agreements, infringement claims,
computer programs, information contained on computer disks or tapes, software,
literature, reports, catalogs, pension plan refunds, pension plan refund claims,
insurance premium rebates, tax refunds, and tax refund claims, and any and all
Supporting Obligations in respect thereof, and any other personal property other
than goods, money, Accounts, Chattel Paper, Commercial Tort Claims, Deposit
Accounts, Investment Property, and Negotiable Collateral.

         "Global Note Legend" means the legend set forth in Section 2.06(g),
which is required to be placed on all Global Notes issued under this Agreement.

                                       14

<PAGE>

         "Global Notes" means, individually and collectively, each of the Class
A Global Notes and Class B Global Notes, substantially in the form of Exhibit A
and Exhibit B hereto, respectively, issued in accordance with Section 2.01,
2.02, 2.06, 2.07 and 2.10 hereof.

         "Governing Documents" means, with respect to any Person, the
certificate or articles of incorporation, bylaws, or other organizational
documents of such Person.

         "Governmental Authority" means any federal (including the federal
government of Canada), state, provincial, local or other governmental or
administrative body, instrumentality, department, or agency, or any court,
tribunal, administrative hearing body, arbitration panel, commission or other
similar dispute-resolving panel or body.

         "Guarantee" means a direct or indirect guarantee by any Person of any
Indebtedness of any other Person and includes any obligation, direct or
indirect, contingent or otherwise, of such Person: (1) to purchase or pay (or
advance or supply funds for the purchase or payment of) Indebtedness of such
other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services
(unless such purchase arrangements are on arm's-length terms and are entered
into in the ordinary course of business), to take-or-pay, or to maintain
financial statement conditions or otherwise); or (2) entered into for purposes
of assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part). The terms "guarantee," when used as a verb, and "guaranteed" have
correlative meanings.

         "Guarantor" and "Guarantors" means all direct and indirect Subsidiaries
of the Company, except for the Insurance Subsidiaries, any Subsidiary formed
under the laws of a jurisdiction outside of the United States and Canada,
Storage Realty, L.L.C., a Texas limited liability company, INW, and the Dormant
Subsidiaries. For the avoidance of doubt, SAC Holding shall not be a Guarantor
under this Agreement. As of the Issue Date, all Guarantors are listed on the
signature page of this Agreement.

         "Guarantor Security Agreement" means, collectively, one or more
security agreements, hypothecations or other similar agreements executed and
delivered by Guarantors and the Trustee, in the same form and substance as such
security agreements, hypothecations or similar agreements delivered by the
Guarantors to the Bank Lenders' Agent under the New Credit Agreement, with such
modifications as are necessary to reflect the fact that the Trustee's Liens in
the Collateral subject thereto are security interests, second in priority only
to the first priority security interests granted to Bank Lenders' Agent pursuant
to the New Credit Agreement and the other Loan Documents (as defined in the New
Credit Agreement).

         "Guaranty Agreement" means the Guaranty executed and delivered by
Guarantors and the Trustee, in the same form and substance delivered by the
Guarantors to the Bank Lenders' Agent under the New Credit Agreement, with such
modifications as are necessary to reflect that the Trustee's security interests
are second in priority only to the first priority security interests granted to
Bank Lenders' Agent pursuant to the New Credit Agreement and the other Loan
Documents (as defined in the New Credit Agreement).

                                       15

<PAGE>

         "Hazardous Materials" means (a) substances that are defined or listed
in, or otherwise classified pursuant to, any Applicable Laws or regulations as
"hazardous substances," "hazardous materials," "hazardous wastes," "toxic
substances," or any other formulation intended to define, list, or classify
substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, reproductive toxicity, or "EP
toxicity", (b) oil, petroleum, or petroleum derived substances, natural gas,
natural gas liquids, synthetic gas, drilling fluids, produced waters, and other
wastes associated with the exploration, development, or production of crude oil,
natural gas, or geothermal resources, (c) any flammable substances or explosives
or any radioactive materials, and (d) asbestos in any form or electrical
equipment that contains any oil or dielectric fluid containing levels of
polychlorinated biphenyls in excess of 50 parts per million.

         "Hedge Agreement" means any and all agreements or documents now
existing or hereafter entered into by the Company or its Subsidiaries that
provide for an interest rate, credit, commodity or equity swap, cap, floor,
collar, forward foreign exchange transaction, currency swap, cross currency rate
swap, currency option, or any combination of, or option with respect to, these
or similar transactions, for the purpose of hedging the Company's or its
Subsidiaries' exposure to fluctuations in interest or exchange rates, loan,
credit exchange, security or currency valuations or commodity prices.

         "Holder" means any registered holder, from time to time, of the Notes.

         "Indebtedness" means (a) all obligations for borrowed money, (b) all
obligations evidenced by bonds, debentures, notes, or other similar instruments
and all reimbursement or other obligations in respect of letters of credit,
bankers acceptances, interest rate swaps, or other financial products, (c) all
obligations as a lessee under Capital Leases, (d) all obligations or liabilities
of others secured by a Lien on any asset of a Person or its Subsidiaries,
irrespective of whether such obligation or liability is assumed, (e) all
obligations to pay the deferred purchase price of assets (other than trade
payables incurred in the ordinary course of business and repayable in accordance
with customary trade practices), and (f) any obligation guaranteeing or intended
to guarantee (whether directly or indirectly guaranteed, endorsed, co-made,
discounted, or sold with recourse) any obligation of any other Person that
constitutes Indebtedness under any of clauses (a) through (e) above.

         "Indirect Participant" means a Person who holds a beneficial interest
in a Global Note through a Participant.

         "Insolvency Proceeding" means any proceeding commenced by or against
any Person under any provision of the Bankruptcy Code or under any other state,
provincial or federal (including the federal laws of Canada) bankruptcy or
insolvency law, assignments for the benefit of creditors, formal or informal
moratoria, compositions, extensions generally with creditors, or proceedings
seeking reorganization, arrangement, or other similar relief.

         "Insurance Subsidiaries" means, collectively, Oxford and RepWest.

         "Intangible Assets" means, with respect to any Person, that portion of
the book value of all of such Person's assets that would be treated as
intangibles under GAAP.

                                       16

<PAGE>

         "Intercreditor Agreement" means that certain Intercreditor Agreement,
as of even date herewith, between the Trustee and the Bank Lenders' Collateral
Agent, as amended, modified, supplemented, extended or restated from time to
time.

         "Interest" means, with respect to all Notes, interest on the Notes, and
with respect to the Class B Notes, Additional Interest, if any, on the Class B
Notes or Exchange Notes issued in exchange therefor, as provided in the
Registration Rights Agreement.

         "Inventory" means any Person's now owned or hereafter acquired right,
title, and interest with respect to inventory, including goods held for sale or
lease or to be furnished under a contract of service, goods that are leased by
such Person as lessor, goods that are furnished by such Person under a contract
of service, and raw materials, work in process, or materials used or consumed in
such Person's business, including, without limitation, supplies and embedded
software.

         "Investment" means, with respect to any Person, any investment by such
Person in any other Person (including Affiliates) in the form of loans,
guarantees, advances, or capital contributions (excluding (a) commission,
travel, and similar advances to officers and employees of such Person made in
the ordinary course of business, and (b) bona fide Accounts arising in the
ordinary course of business consistent with past practices), purchases or other
acquisitions for consideration of Indebtedness or Stock, and any other items
that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP.

         "Investment Property" means any Person's now owned or hereafter
acquired right, title, and interest with respect to "investment property" as
that term is defined in the Code, and any and all Supporting Obligations in
respect thereof.

         "INW" means INW Company, a Washington corporation.

         "IRC" means the Internal Revenue Code of 1986, as in effect from time
to time.

         "IRS" means the Internal Revenue Service of the United States and any
successor thereto.

         "Issue Date" means the date on which the Notes are originally issued.
For the avoidance of doubt, such date is March 15, 2004.

         "Junior Notes" means those promissory notes issued by SAC Holding to
Nationwide Commercial Co., an Arizona corporation, U-Haul and Oxford prior to
the Parent Relief Date, as amended and restated as of the Issue Date.

         "Letter of Transmittal" means the letter of transmittal to be prepared
by the Company and sent to all Holders of the Notes for use by such Holders in
connection with the Exchange Offer.

         "Lien" means any interest in an asset securing an obligation owed to,
or a claim by, any Person other than the owner of the asset, irrespective of
whether (a) such interest shall be based on the common law, statute, or
contract, (b) such interest shall be recorded or perfected, and (c) such
interest shall be contingent upon the occurrence of some future event or events
or the existence of some future circumstance or circumstances. Without limiting
the generality of the

                                       17

<PAGE>

foregoing, the term "Lien" includes the lien, security interest or hypothec
arising from a mortgage, deed of trust, encumbrance, pledge, hypothecation,
assignment, deposit arrangement, security agreement, conditional sale or trust
receipt, or from a lease, consignment, or bailment for security purposes and
also including reservations, exceptions, encroachments, easements,
rights-of-way, covenants, conditions, restrictions, leases, and other title
exceptions and encumbrances affecting Real Property.

         "Major Space Leases" means lease agreements, other than lease
agreements covering all or a portion of Real Property subject to the Synthetic
Leases, pursuant to which the proposed demised premises exceeds 5,000 square
feet and the proposed term thereof, inclusive of all extensions and renewals,
exceeds 10 years.

         "Management Agreements" means, collectively, those certain property
management agreements between Subsidiaries of U-Haul, on the one hand, and any
of SAC Holding or SSI, on the other hand.

         "Material Adverse Change" means (a) a material adverse change in the
business, prospects, operations, results of operations, assets, liabilities or
condition (financial or otherwise) of the Borrowers and their Subsidiaries
(other than the Insurance Subsidiaries) taken as a whole, (b) a material
impairment of the ability of a Note Party to perform its obligations under the
Note Documents to which it is a party or of the ability of the Trustee or the
Holders to enforce the Obligations or realize upon the Collateral, or (c) a
material impairment of the enforceability or priority of the Trustee's Liens
with respect to the Collateral as a result of an action or failure to act on the
part of a Borrower or a Subsidiary of a Borrower (other than the Insurance
Subsidiaries). For the avoidance of doubt, changes affecting SAC Holding shall
not constitute a "Material Adverse Change."

         "Material Contracts" means the agreements set forth on Schedule M-1 to
the New Credit Agreement, which include each of the agreements (a) filed in
connection with any Note Party's SEC Filings and in existence as of the Issue
Date, (b) executed in connection with the Reorganization Plan, and (c) those
agreements to which any Note Party is a party and the loss or breach of which by
such Note Party would result in a Material Adverse Change, as such agreements
are in existence on the Issue Date or as amended to the extent permitted
hereunder.

         "Mortgage Policy" means mortgagee title insurance policies (or marked
commitments to issue the same) for the Real Property Collateral issued by the
same title insurance company or companies issuing mortgagee title insurance
policies in connection with the mortgages granted pursuant to the New Credit
Agreement in amounts reasonably satisfactory to the Trustee assuring the Trustee
that the Mortgages encumbering such Real Property Collateral owned by a Note
Party are valid and enforceable mortgage Liens thereon (second only to the first
priority security interests granted to Bank Lenders' Agent pursuant to the New
Credit Agreement and the other Loan Documents (as defined in the New Credit
Agreement)) free and clear of all defects and encumbrances except Permitted
Liens, and the Mortgage Policies otherwise shall be in form and substance
reasonably satisfactory to the Trustee.

         "Mortgages" means, individually and collectively, one or more
mortgages, hypothecs, deeds of trust, or deeds to secure debt, executed and
delivered by a Note Party in favor of the

                                       18

<PAGE>

Trustee, for the benefit of the Holders, in similar form and substance to those
delivered to the Bank Lenders' Agent or the Fonde de pouvoir under the New
Credit Agreement, with such modifications as necessary to reflect the fact that
the Trustee's rights in the Collateral subject thereto are Liens (second only to
the first priority security interests granted to Bank Lenders' Agent pursuant to
the New Credit Agreement and the other Loan Documents (as defined in the New
Credit Agreement)) that encumber the Real Property Collateral and the related
improvements thereto.

         "Multiemployer Plan" means a "multiemployer plan" (as defined in
Section 4001(a)(3) of ERISA) to which the Company, any of its Subsidiaries, or
any ERISA Affiliate has contributed, or was obligated to contribute, within the
past six (6) years.

         "Negotiable Collateral" means any Person's now owned and hereafter
acquired right, title, and interest with respect to letters of credit, letter of
credit rights, instruments, promissory notes, drafts, and documents, and any and
all Supporting Obligations in respect thereof.

         "Net Disposition" means the aggregate amount of Net Proceeds received
by a Note Party from the disposition of any Equipment that is a capital asset
and any Real Property that constitutes an Excluded Asset during any period.

         "Net Proceeds" means, with respect to any asset disposition by the
Company or any Subsidiary of the Company or any proceeds from casualty insurance
received by the Company or any Subsidiary, the aggregate amount of cash or Cash
Equivalents received for such assets, net of (a) reasonable and customary
transaction costs and expenses, (b) transfer taxes (including sales and use
taxes), (c) amounts payable to holders of applicable Permitted Liens hereunder
to the extent that such Permitted Liens (other than the Synthetic Leases), if
any, are senior in priority to the Trustee's Liens, (d) an appropriate reserve
for income taxes in accordance with GAAP, and (e) appropriate amounts to be
provided as a reserve against liabilities or otherwise held in escrow in
association with any such disposition, in each case clauses (a) through (e) to
the extent the amounts so deducted are properly attributable to such transaction
and payable (or reserved) by the Company or any Subsidiary of the Company in
connection with such disposition or loss, including without limitation
reasonable and customary commissions and underwriting discounts, to a Person
that is not an Affiliate of the Company or such Subsidiary.

         "New AMERCO Note Accounts" means, collectively, the Restated SAC Notes
Escrow Account, the 3.08(b) Account and any other Deposit Account that holds or
otherwise constitutes the collateral securing the obligations under the New
AMERCO Note Documents.

         "New AMERCO Note Documents" means, collectively, the New AMERCO Note
Indenture, the New AMERCO Notes and such other documents executed by the Company
in connection therewith.

         "New AMERCO Note Indenture" means the Indenture with respect to the
issuance of New AMERCO Notes, dated March 15, 2004, among the Company, the
guarantors listed on the signature pages thereto, and The Bank of New York, as
trustee, governing the New AMERCO Notes.

                                       19

<PAGE>

         "New AMERCO Note Lenders" means those Persons that are "Holders" under
the New AMERCO Note Indenture.

         "New AMERCO Notes" means the 12% Senior Secured Subordinated Notes Due
2011 in the principal amount of $148,646,137 issued pursuant to the New AMERCO
Note Indenture.

         "New Credit Agreement" means the Loan and Security Agreement dated as
of March 1, 2004, by and among Wells Fargo Foothill, Inc., as lead arranger,
administrative agent, and collateral agent, the Bank Lenders and the Borrowers,
as may be subsequently amended, restated, refinanced, refunded, extended or
replaced from time to time whether by the same or any other agent, lender or
group of lenders.

         "Note Documents" means this Agreement (together with all exhibits and
schedules hereto), the Notes, the Cash Management Agreements (as defined in the
New Credit Agreement), the Collateral Access Agreements, the Confirmation Order,
the Control Agreements, the Copyright Security Agreement, the Guarantor Security
Agreement, the Guaranty Agreement, the Note Guarantees, the Environmental
Indemnity Agreements, the Mortgages, the Patent and Trademark Security
Agreement, the Quebec Security Documents, the Agency Letter, the Stock Pledge
Agreement, any other Security Document and any other agreement entered into, now
or in the future, by any Note Party and accepted by the Trustee or any Holder in
connection with this Agreement or any other Security Document.

         "Note Guarantee" means, collectively, the guarantee by each Guarantor
of the Company's obligations under this Agreement, the Notes and the other Note
Documents in favor of the Trustee, for the benefit of the Holders.

         "Note Party" means the Company or any Guarantor, and "Note Parties"
means the Company and all Guarantors.

         "Notes" means the Class A Notes, the Class B Notes and the Exchange
Notes.

         "Obligation" means any principal, interest, premiums, Additional
Interest, penalties, fees, indemnifications, reimbursements, costs, expenses,
damages and other liabilities payable and any performance due under the
documentation governing any Indebtedness.

         "OFAC" means the Office of Foreign Assets Control of the United States
Department of Treasury.

         "Officer" means any of the following of the Company: the Chairman of
the Board of Directors, the Chief Executive Officer, the Chief Financial
Officer, the President, any Vice President, the Treasurer or the Secretary.

         "Officer's Certificate" means a certificate signed by an Officer.

         "Organizational ID Number" means, with respect to any Person, the
organizational identification number assigned to such Person by the applicable
governmental unit or agency of the jurisdiction of organization or formation of
such Person.

                                       20

<PAGE>

         "Oxford" means Oxford Life Insurance Company, an Arizona corporation,
and its Subsidiaries, whether now existing or hereafter formed.

         "Parent Relief Date" means June 20, 2003.

         "Participant" means, with respect to the Depositary, a Person who has
an account with the Depositary.

         "Patent and Trademark Security Agreement" means that certain patent and
trademark security agreement executed and delivered by all Note Parties that own
patent or trademarks as of the Issue Date, and the Trustee, in the same form and
substance as delivered to the Bank Lenders' Agent under the New Credit
Agreement, with such modifications as necessary to reflect the fact that the
Trustee's Liens in the Collateral subject thereto are security interests, second
in priority only to the first priority security interests granted to Bank
Lenders' Agent pursuant to the New Credit Agreement and the other Loan Documents
(as defined in the New Credit Agreement).

         "PBGC" means the Pension Benefit Guaranty Corporation as defined in
Title IV of ERISA, or any successor thereto.

         "Permitted Discretion" means a determination made in good faith and in
the exercise of reasonable (from the perspective of a secured asset-based
lender) business judgment.

         "Permitted Dispositions" means (a) sales or other dispositions by the
Borrowers or their Subsidiaries of Equipment that is substantially worn,
damaged, or obsolete in the ordinary course of business, as determined by the
Borrowers or their Subsidiaries, as the case may be, (b) the use or transfer of
money or Cash Equivalents by Borrowers or their Subsidiaries in a manner that is
not prohibited by the terms of this Agreement or the other Note Documents, (c)
the licensing by Borrowers or their Subsidiaries, on a non-exclusive basis, of
patents, trademarks, copyrights, and other intellectual property rights in the
ordinary course of business, (d) conveyances, assignments, leases, transfers,
sales or dispositions of any Excluded Asset, (e) leases and licenses of
self-storage units to customers in the ordinary course of business, (f) the
granting of billboard and cell tower leases on any Real Property, (g) the
granting of space leases in the ordinary course of business that do not
constitute Major Space Leases, unless otherwise consented to by the Bank
Lenders' Agent, (h) dispositions of Real Property or any part thereof required
in connection with condemnations or takings, or dispositions in lieu thereof,
where the compensation paid on account thereof is immediately remitted to the
Bank Lenders' Agent, (i) so long as no Event of Default has occurred and is
continuing, dispositions of box-trucks, cargo vans and pickup trucks in the
ordinary course of the Company's and U-Haul's fleet rotation program, so long as
the aggregate net book value of box-trucks, cargo vans and pickup trucks subject
to Trustee's Liens does not decrease by more than (i) $40,000,000 in any of (A)
the first fiscal quarter after the Issue Date (to be tested as of the end of
such period), (B) the first two fiscal quarters after the Issue Date (to be
tested as of the end of such period), (C) the first three fiscal quarters after
the Issue Date (to be tested as of the end of such period), or (D) each 12-month
period thereafter (to be tested as of the end of each fiscal quarter), or (ii)
$160,000,000 in the aggregate after the Issue Date, (j) the granting of
Permitted Easements, (k) so long as no Event of Default has occurred and is then
continuing, the sale in the ordinary course of business of Vehicles acquired
within the previous 130 days in connection with a TRAC Lease Transaction to the
extent the obligations

                                       21

<PAGE>

thereunder are permitted by this Agreement, (l) the sale, disposition or
replacement of Vehicles exchanged in connection with the PMCC Like Kind Exchange
Lease, (m) sales or other dispositions set forth in the Reorganization Plan and
approved in the Confirmation Order, (n) the sale of that certain portion of the
parcel of Real Property Collateral located at 471 South Road, Poughkeepsie, New
York that is subject to the lease purchase option exercised prior to the Issue
Date, (o), so long as no Event of Default shall be caused thereby, other
dispositions of Real Property Collateral with a Fair Market Valuation in an
aggregate amount not to exceed either (i) $10,000,000 during any fiscal year or
(ii) $35,000,000 in total after the Issue Date; provided, however, the sale or
other disposition of any parcel of Real Property Collateral (x) shall result in
a Note Party receiving proceeds in an amount of not less than 80% of the Fair
Market Valuation of such Real Property Collateral, and (y) with an appraised
Fair Market Valuation exceeding $7,000,000 shall not constitute a Permitted
Disposition, and (p) leases and licenses of any portion of the Real Property
subject to the Synthetic Leases to tenants in the ordinary course of business.

         "Permitted Easements" means (a) easements, licenses, rights-of-way and
other rights and privileges in the nature of easements reasonably necessary or
desirable for the use, repair, or maintenance of any Real Property as herein
provided and (b) if required by applicable Governmental Authority, the
dedication or transfer of unimproved portions of any Real Property for road,
highway or other public purposes; so long as, in each case (other than with
respect to Real Property subject to the Synthetic Leases) (i) such grant,
dedication or transfer does not materially impair the value or remaining useful
life of the applicable Real Property or the fair market value of such Real
Property or materially impair or interfere with the use or operations thereof,
(ii) such grant, dedication or transfer, in the Company's business judgment, is
reasonably necessary in connection with the use, maintenance, alteration or
improvement of the applicable Real Property and (iii) such grant, dedication or
transfer will not cause the applicable Real Property or any portion thereof to
fail to comply with the provisions of the Note Documents and all Applicable Law.

         "Permitted Holder" means Edward J. Shoen, Mark V. Shoen, James P.
Shoen, and their Family Members, and their Family Trusts.

         "Permitted Investments" means (a) Investments in cash and Cash
Equivalents, (b) Investments in negotiable instruments for collection, (c)
advances made in connection with purchases of goods or services in the ordinary
course of business, (d) Investments by any Note Party in any other Note Party;
provided, to the extent such Investment is in the form of Indebtedness, such
Indebtedness shall be unsecured and contractually subordinated to the
Obligations and, upon any such relevant Note Party ceasing to be a wholly-owned
Subsidiary of the Company or such Indebtedness being owed to any Person other
than a Note Party, such Note Party shall be deemed to have incurred Indebtedness
not permitted by this clause (d), (e) Investments by U-Haul and Nationwide
Commercial Co. evidenced by the Junior Notes not to exceed the principal amount
outstanding thereunder as of the Issue Date (except for increases in principal
resulting solely from the accrual of interest thereon), (f) payments by U-Haul
and its Subsidiaries of expenses on behalf of SAC Holdings pursuant to the
Management Agreements provided that all such expenses are promptly reimbursed by
the appropriate other parties to the Management Agreements, (g) Investments in
PMSR, PM Preferred or any of its or their Affiliates owned by the Company or any
of its Subsidiaries or SAC Holding solely to the extent

                                       22

<PAGE>

required pursuant to the Company's obligations under the Support Party
Agreements, so long as (i) on the date of such Investment, Borrowers' Excess
Availability plus Qualified Cash (as reported by Borrowers pursuant to Section
6.2(a) of the New Credit Agreement) exceeds (A) $35,000,000 plus (B) the amount
of such Investment, as of the date of such payment and as of the end of the
month for each of the preceding consecutive 12 fiscal months immediately
preceding such payment date, (ii) after giving effect to such Investment,
Borrowers' Excess Availability plus Qualified Cash, as reflected in the
Projections (as defined in the New Credit Agreement) most recently delivered to
Trustee pursuant to Section 4.03(c) hereof, is projected to exceed $35,000,000
as of the month end for each of the 12 fiscal months immediately succeeding the
date of such Investment for each of the 12 fiscal months, and (iii) no Event of
Default has occurred and is continuing or would result therefrom, (h) guarantees
by the Company of the obligations of its Subsidiaries that are Note Parties to
the extent such obligations are otherwise permitted hereunder and are consistent
with past practices, (i) payments by U-Haul and its Subsidiaries in the ordinary
course of business and consistent with past practices of certain ordinary course
operating expenses on behalf of any U-Haul Dealer pursuant to a Dealership
Contract, provided that the applicable U-Haul Dealer reimburses U-Haul and its
Subsidiaries for all such expenses in accordance with the provisions of the
Dealership Contract, (j) Hedge Agreements, as permitted hereunder, (k) other
Investments in an aggregate amount not to exceed $5,000,000 per year, and (l)
Investments pursuant to that certain promissory note dated February 12, 1997
from PMSR in favor of U-Haul in the original principal amount of $10,000,000,
with such Indebtedness of PMSR thereunder assumed by PMSI Investors, LLC on or
about November 30, 1999.

         "Permitted Liens" means (a) Liens held by the Trustee for the benefit
of the Holders, (b) Liens for unpaid taxes that (i) are not yet delinquent, or
(ii) are the subject of a Permitted Protest, (c) Liens set forth on Schedule P-1
to the New Credit Agreement, (d) (i) Liens on the Synthetic Lease Collateral
arising under the Synthetic Leases and the interests of lessors under operating
leases, and (ii) the interests of the lessor and indenture trustee under the
PMCC Leveraged Lease, (e) purchase money Liens or the interests of lessors in
leased assets under Capital Leases to the extent that such Liens or interests
secure Purchase Money Indebtedness permitted hereunder and so long as such Lien
attaches only to the asset purchased or acquired and the proceeds thereof, (f)
Liens arising by operation of law in favor of warehousemen, landlords, carriers,
mechanics, materialmen, laborers, or suppliers, incurred in the ordinary course
of business and not in connection with the borrowing of money, and which Liens
either (i) are for sums not yet delinquent or (ii) are the subject of Permitted
Protests, (g) Liens arising from deposits made in connection with obtaining
worker's compensation or other unemployment insurance, (h) Liens or deposits to
secure performance of bids, tenders, or leases incurred in the ordinary course
of business and not in connection with the borrowing of money, (i) Liens granted
as security for surety or appeal bonds in connection with obtaining such bonds
in the ordinary course of business, (j) Liens with respect to the Real Property
Collateral that are exceptions to the commitments for title insurance issued in
connection with the Mortgages, as accepted by the Trustee, (k) with respect to
any Real Property, Permitted Easements, (l) Liens arising from judgments and
attachments in connection with court proceedings provided that the attachment or
enforcement of such Liens would not result in an Event of Default hereunder and
such Liens are subject to a Permitted Protest and no material Collateral is
subject to a material risk of loss or forfeiture and the claims in respect of
such Liens are fully covered by insurance (subject to ordinary and customary
deductibles) and a stay of execution pending appeal or proceeding for

                                       23

<PAGE>

review is in effect, (m) Liens granted to the New AMERCO Note Lenders pursuant
to the New AMERCO Note Documents on the property described in clauses (b), (c),
(e), (f) and (g) of the definition of "Excluded Assets" set forth in this
Section 1.01, (n) Liens granted to the Bank Lenders' Agent pursuant to the New
Credit Agreement and the other Loan Documents (as defined in the New Credit
Agreement), (o) Liens on Real Property in favor of Oxford as of the Issue Date,
as set forth on Schedule E-1 to the New Credit Agreement, (p) subject to the
provisions of Section 2.7(e) of the New Credit Agreement, Liens on the cash
collateral accounts set forth on Schedule 2.7(e) of the New Credit Agreement,
and (q) Liens arising from the refinancing of the Obligations (as defined in the
New Credit Agreement), which do not result in the creation of additional first
priority Liens in excess of the first priority Liens in existence on the Issue
Date.

         "Permitted Protest" means the right of the Company or any of its
Subsidiaries, as applicable, to protest any Lien (other than any such Lien that
secures the Obligations), taxes (other than payroll taxes or taxes that are the
subject of a United States federal tax lien), or rental payment, provided that
(a) a reserve with respect to such obligation is established on such Person's
Books in such amount as is required under GAAP, (b) any such protest is
instituted promptly and prosecuted diligently by the Company or any of its
Subsidiaries, as applicable, in good faith, and (c) while any such protest is
pending, there will be no impairment of the enforceability, validity, or
priority of any of the Trustee's Liens.

         "Person" means any natural person, corporation, limited liability
company, limited partnership, general partnership, limited liability
partnership, joint venture, trust, land trust, business trust, or other
organization, irrespective of whether it is a legal entity, and any government
and agency or political subdivision thereof.

         "Personal Property Collateral" means all Collateral other than Real
Property.

         "PMCC Like Kind Exchange Lease" means that certain Master Equipment
Lease Agreement dated as of June 30, 2000, between Norwest Bank Minnesota,
National Association, as lessor, and U-Haul Leasing & Sales Co., as lessee, and
all ancillary agreements referenced therein, as all of the foregoing exist on
the Issue Date, and as amended to the extent permitted herein.

         "PMCC Leveraged Lease" means that certain Equipment Lease Agreement
(U-Haul Trust No. 96-1) dated as of June 28, 1996 between Fleet National Bank,
as lessor, and U-Haul Leasing & Sales Co., as lessee, and all ancillary
agreements referenced therein, as all of the foregoing exist on the Issue Date,
and as amended to the extent permitted herein.

         "PM Preferred" means PM Preferred Properties, L.P., a Texas limited
partnership.

         "PMSR" means Private Mini Storage Realty, L.P., a Texas limited
partnership.

         "PMSR Agreement" means that certain PMSR Agreement dated as of the
Effective Date among the Company, PMSR, JPMorgan Chase Bank, as agent, and the
Lenders party thereto.

         "PPSA" means the Personal Property Security Act, as in effect from time
to time in any applicable Canadian province or territory.

                                       24

<PAGE>

         "principal" means, with respect to the Notes, the principal of the
Notes.

         "Private Placement Legend" means the legend set forth in Section
2.06(g) to be placed on all Class B Notes issued under this Agreement except
where otherwise permitted by the provisions of this Agreement.

         "Purchase Money Indebtedness" means Indebtedness (other than the
Obligations, but including Capitalized Lease Obligations), incurred at the time
of, or within 20 days after, the acquisition of any fixed assets for the purpose
of financing all or any part of the acquisition cost thereof.

         "PWC Litigation" means that certain claim filed by the Company against
PricewaterhouseCoopers on or about June 5, 2003 in the Superior Court of
Arizona, Maricopa County, No. CV2003-011032, and all related disputes between
the Company and PricewaterhouseCoopers.

         "Qualified Cash" means, as of any date of determination, the amount of
unrestricted cash and Cash Equivalents of the Note Parties that is in Deposit
Accounts or in Securities Accounts, or any combination thereof, and after August
15, 2003, which such Deposit Account or Securities Account is the subject of a
Control Agreement and is maintained by a branch office of the bank or securities
intermediary located within the United States.

         "Quebec Security Documents" means, collectively, (a) the deed of
hypothec and issue of bonds by each Canadian Subsidiary in favor of the Fonde de
pouvoir creating a hypothec in the principal amount of Cdn$1,320,000,000 in all
the Canadian Subsidiaries' personal (movable) and real (immovable) property, (b)
the delivery order by each Canadian Subsidiary to the Fonde de pouvoir, (c) the
25% demand bond issued by each Canadian Subsidiary to the Trustee and certified
by the Fonde de pouvoir, and (d) the pledge agreement by each Canadian
Subsidiary pledging the 25% demand bond in favor of the Trustee in the form and
substance delivered to Bank Lenders' Agent, with such modifications as are
necessary to reflect Trustee's security interests, second in priority only to
the first priority security interests granted to Bank Lenders' Agent pursuant to
the New Credit Agreement and the other Loan Documents (as defined in the New
Credit Agreement).

         "Real Property" means any estates or interests in real property now
owned or hereafter acquired by any Note Party and the improvements thereto.

         "Real Property Collateral" means the parcel or parcels of Real Property
identified on Schedule R-1 to the New Credit Agreement and any Real Property
hereafter acquired by a Note Party on which the Trustee has, or any Note Party
is required (in accordance with this Agreement or any other Note Document) to
grant, a Lien.

         "Record" means information that is inscribed on a tangible medium or
which is stored in an electronic or other medium and is retrievable in
perceivable form.

         "Redeem" means to redeem, repurchase, purchase, defease, retire,
discharge or otherwise acquire or retire for value; and "redemption" shall have
a correlative meaning.

                                       25

<PAGE>

         "Registration Rights Agreement" means the Registration Rights
Agreement, dated as of March 1, 2004, by and among the Company, the Guarantors
and the purchasers of the Class B Notes, as such agreement may be amended,
modified or supplemented from time to time.

         "Refinance" means to refinance, repay, prepay, replace, renew or
refund.

         "Remedial Action" means all actions taken to (a) clean up, remove,
remediate, contain, treat, monitor, assess, evaluate, or in any way address
Hazardous Materials in the indoor or outdoor environment, (b) prevent or
minimize a release or threatened release of Hazardous Materials so they do not
migrate or endanger or threaten to endanger public health or welfare or the
indoor or outdoor environment, (c) perform any pre-remedial studies,
investigations, or post-remedial operation and maintenance activities, or (d)
conduct any other actions authorized by 42 U.S.C. Section 9601.

         "Reorganization Plan" means that certain First Amended Joint Plan of
Reorganization dated November 26, 2003, filed under Chapter 11 of the United
States Bankruptcy Code by the Company and AREC, together with any amendments or
modifications thereto.

         "RepWest" means Republic Western Insurance Company, an Arizona
corporation, and its Subsidiaries, whether now existing or hereafter formed.

         "Required Holders" means at any time of determination:

         (a) if at such time Class B Notes are then outstanding, then (i) the
Holders of at least 75% of the aggregate principal amount of the then
outstanding Class B Notes, and (ii) Holders of a majority in aggregate principal
amount of the Class A Notes then outstanding; and

         (b) if at such time there are no Class B Notes outstanding, the Holders
of a majority in aggregate principal amount of the Notes then outstanding.

         "Required Lenders" has the meaning ascribed thereto in the New Credit
Agreement.

         "Reservation Management System" means the software system known as
"Microres," which is used in connection with customer reservations of U-Haul
products and services.

         "Responsible Officer," when used with respect to the Trustee, means any
officer within the Corporate Trust Office of the Trustee (or any successor group
of the Trustee) or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of such Person's knowledge of
and familiarity with the particular subject.

         "Restated SAC Notes Escrow Account" means that certain segregated
Deposit Account or investment account maintained by the Company pursuant to
Section 11.05 of the New AMERCO Note Indenture.

                                       26

<PAGE>

         "SAC Holding" means, collectively, SAC Holding Corporation, a Nevada
corporation, SAC Holding II Corporation, a Nevada corporation, Montreal Holding
Corporation, a Nevada corporation, and each of their respective Subsidiaries,
whether now existing or hereafter formed.

         "SAC Holding Senior Bond" means the 8.5% senior notes due 2014 in
principal amount of $200,000,000 issued pursuant to the SAC Notes Indenture.

         "SAC Notes Indenture" means that certain Indenture with respect to the
issuance of the SAC Holding Senior Bond, dated as of March 15, 2004, among SAC
Holding Corporation, SAC Holding II Corporation and Law Debenture Trust Company
of New York.

         "SAC Participation and Subordination Agreement" means that certain
participation and subordination agreement dated as of March 15, 2004, by and
among SAC Holding, the Company, U-Haul, and Law Debenture Trust Company of New
York, as Trustee under the SAC Notes Indenture.

         "Sale Date" has the meaning set forth in Section 5.04.

         "SEC" means the United States Securities and Exchange Commission and
any successor thereto.

         "SEC Filings" means, with respect to any Person, all reports, documents
and other information filed by such Person pursuant to the Securities Act, and
the Securities Exchange Act of 1934, as amended, and all other rules and
regulations promulgated by the SEC, including such Person's filed Form 10-K and
subsequently filed quarterly reports on Form 10-Q and current reports on Form
8-K.

         "Securities Account" means a "securities account" as that term is
defined in the Code.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Shelf Registration Statement" means a Shelf Registration Statement as
defined in the Registration Rights Agreement.

         "SSI" means Self-Storage International Holding Corporation, a Nevada
corporation, and any Subsidiary thereof, whether now existing or hereafter
formed.

         "Statutory Lien Payments" means all contributions required to be made
by Company and its Subsidiaries pursuant to the Canada Pension Plan Act
(Canada), provincial pension plan contributions, workers compensation
assessments, and employment insurance premiums payable under Applicable Laws.

         "Stock" means all shares, options, warrants, interests, participations,
or other equivalents (regardless of how designated) of or in a Person, whether
voting or nonvoting, including common stock, preferred stock, or any other
"equity security" (as such term is defined in Rule 3a11-1 of the General Rules
and Regulations promulgated by the SEC under the Exchange Act).

                                       27

<PAGE>

         "Stock Pledge Agreement" means, collectively, one or more stock pledge
agreements, in the form and substance similar to those delivered to Bank
Lenders' Agent under the New Credit Agreement (with such modifications as
necessary to reflect the fact that the Trustee's Liens in the Collateral subject
thereto are security interests, second in priority only to the first priority
security interests granted to Bank Lenders' Agent pursuant to the New Credit
Agreement and the other Loan Documents (as defined in the New Credit
Agreement)), executed and delivered in favor of the Trustee by each Note Party
that owns Stock of a Subsidiary of the Company; provided a Stock Pledge
Agreement shall not be required in connection with the Stock of the Insurance
Subsidiaries, the Dormant Subsidiaries, INW, or Storage Realty, L.L.C.

         "Subsidiary" of a Person means a corporation, partnership, limited
liability company, or other entity in which that Person directly or indirectly
owns or controls the shares of Stock having ordinary voting power to elect a
majority of the board of directors (or appoint other comparable managers) of
such corporation, partnership, limited liability company, or other entity;
provided, however, PMSR, PM Preferred, SAC Holding and SSI shall not be deemed
to be Subsidiaries of any Borrower herein.

         "Support Party Agreement" means, collectively, (a) that certain Support
Party Agreement dated as of February 28, 2003 by and among the Company and PM
Preferred in favor of GMAC Commercial Holding Corp., as administrative agent, as
amended by the First Amendment to Support Party Agreement dated as of June 13,
2003, and (b) that certain PMSR Agreement to be dated as of the Effective Date,
by and among the Company, PMSR, JP Morgan Chase Bank, as administrative agent,
and lenders signatory thereto, in each case as amended prior to the Issue Date
and after the Issue Date as permitted herein (provided, in each case, such
amendment does not increase the obligations of any Note Party thereunder).

         "Supporting Obligation" means any Person's now owned or hereafter
acquired right, title and interest with respect to any "supporting obligation"
as that term is defined in the Code.

         "Synthetic Lease Collateral" means (a) the Real Property and Real
Property interests leased under the Synthetic Leases and all structures,
buildings and other immovable improvements located on such Real Property (the
"Synthetic Lease Properties"); (b) all equipment, machinery, apparatus,
fittings, furniture, fixtures and other property of every kind and nature
whatsoever now or hereafter affixed to any portion of the Synthetic Lease
Properties or which is used for the storage of property of storage customers of
any Synthetic Leases under any Assigned Storage Agreements (defined below)
(excluding Vehicles), and which are now owned or hereafter acquired by any
lessor under any Synthetic Lease or in which any such lessor has or shall have
an interest, and all appurtenances and additions thereto and substitutions
therefor; (c) all storage rental agreements, leases and licenses with respect to
the Synthetic Lease Properties now or hereinafter entered into and all
amendments, supplements and modifications thereto (collectively, the "Assigned
Storage Agreements"); (d) all rents, maintenance fees, advance fees and
deposits, security deposits and prepaid amounts, income, receipts, issues,
profits and revenues arising from the Synthetic Lease Properties, (e) to the
extent arising from Assigned Storage Agreements or other rights to payment for
storage space at the Synthetic Lease Properties by storage customers, "general
intangibles" (including "payment intangibles") and "accounts" (as such terms are
defined in the Code), and other rights to payment for storage space at the
Synthetic Lease Properties by storage customers, (f) license and concession
fees, proceeds

                                       28

<PAGE>

and other benefits to which any Synthetic Lessee or any agent of a Synthetic
Lessee may now or hereafter be entitled with respect to the Assigned Storage
Agreements; (g) all books, records, writings, data bases, and information
relating to, used or useful in connection with, evidencing, embodying,
incorporating or referring to, any of the foregoing; (h) any award or
compensation or insurance payment or other proceeds to which any Synthetic
Lessee may become entitled by reason of its interest in the Synthetic Lease
Properties; and (i) all products, offspring, rents, issues, profits, returns,
income and Proceeds (as defined in the Code) of and from any and all of the
foregoing.

         "Synthetic Lease Properties" has the meaning set forth in the
definition of "Synthetic Lease Collateral".

         "Synthetic Leases" means, collectively, (i) the Amended and Restated
Master Lease dated as of March 15, 2004 between AREC, as lessee, and BMO Global
Capital Solutions, Inc., as lessor, and any other documents, agreements,
mortgages, deeds of trust and other instruments executed in connection
therewith, (ii) that certain Second Amended and Restated Master Lease and
Open-End Mortgage dated as of March 15, 2004 among U-Haul and AREC, as lessees,
the various Lessors, identified therein, as lessor, and BMO Global Capital
Solutions, Inc. as Agent Lessor for the Lessors, and any documents, agreements,
mortgages, deeds of trust, and other instruments executed in connection
therewith, and (iii) that certain Canadian U-Haul Master Lease dated as of April
5, 2001 between Computershare Trust Company of Canada, as successor to Montreal
Trust Company of Canada, and U-Haul (Canada), and any documents, agreements,
mortgages, deeds of trust, and other instruments executed in connection
therewith, each as may be subsequently amended, restated or refinanced to the
extent permitted hereunder.

         "Synthetic Lessee" means any of AREC, U-Haul and U-Haul (Canada) and
any of their respective successors in interest as lessees under the Synthetic
Leases that may succeed to such interests in accordance with this Agreement and
the applicable Synthetic Leases.

         "3.08(b) Account" means that certain segregated Deposit Account or
investment account maintained by the Company at The Bank of New York pursuant to
Section 3.08(b) of the New AMERCO Note Indenture.

         "TIA" means the Trust Indenture Act of 1939, as amended.

         "TRAC Lease Transaction" means any operating or capital lease (as
determined in accordance with GAAP) entered into by any Note Party pursuant to a
"Terminal Rental Adjustment Clause" lease (including, without limitation, the
PMCC Like Kind Exchange Lease) whereby (a) (i) the ownership of a Vehicle that
is owned by such Note Party is transferred to a lessor within 130 days of the
acquisition of such Vehicle or (ii) the ownership of a Vehicle is transferred to
a lessor by someone other than a Note Party, and (b) the Vehicle so transferred
is leased back to the Note Party by such lessor.

         "Trustee" means the party named as such above until a successor
replaces it in accordance with the applicable provisions of this Agreement and
thereafter means the successor serving hereunder.

                                       29

<PAGE>

         "Trustee's Liens" means the Liens granted by the Company and the
Guarantors to the Trustee, for the benefit of the Holders of the Notes, under
this Agreement, the Security Documents and the other Note Documents.

         "U-Haul" means U-Haul International, Inc., a Nevada corporation.

         "U-Haul (Canada)" means U-Haul Co. (Canada) Ltd. U-Haul Co. (Canada)
Ltee, an Ontario corporation.

         "U-Haul Dealer" means any Person that leases Vehicles on behalf of
U-Haul in the ordinary course of business pursuant to a Dealership Contract, as
identified on the Dealer List.

         "USA Patriot Act" means the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Pub. L. No. 107-56, 115 Stat. 272 (2001), as the same has been, or shall
hereafter be, renewed, extended, amended or replaced.

         "U.S. Government Obligations" means direct non-callable obligations of,
or obligations guaranteed by, the United States of America for the payment of
which guarantee or obligations the full faith and credit of the United States is
pledged.

         "Vehicle" or "Vehicles" means any vehicle (including any motor
vehicle), trailer or other asset of any Note Party represented by a certificate
of title.

         "WP Carey Transaction" means the transaction, in form and substance
reasonably satisfactory to Required Lenders, whereby UH Storage (DE) Limited
Partnership, a Delaware limited partnership, or other Affiliate of W.P. Carey &
Co., LLC, will acquire the Real Property that is subject to the Synthetic Leases
(excluding Real Property located in Canada) and such Synthetic Leases shall be
paid in full and terminated, all as more fully set forth on Schedule W-1 to the
New Credit Agreement.

         1.02 Other Definitions.

<TABLE>
<CAPTION>
                            Defined in
          Term               Section
          ----               -------
<S>                         <C>
"Additional Documents"        11.09
"Authentication Order"         2.02
"Covenant Defeasance"          8.03
"DTC"                          2.03
"Event of Default"             6.01
"Fonde de pouvoir"            11.16
"Guaranteed Obligations"      10.01
"Legal Defeasance"             8.02
"Paying Agent"                 2.03
"Registrar"                    2.03
"Sale Date"                    5.04
"Security Documents"          11.01
</TABLE>

                                       30

<PAGE>

         1.03 Incorporation by Reference of Trust Indenture Act.

         Whenever this Agreement refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Agreement.

         The following TIA terms used in this Agreement have the following
meanings:

         "indenture securities" means the Notes;

         "indenture security Holder" means a Holder of a Note;

         "indenture to be qualified" means this Agreement;

         "indenture trustee" or "institutional trustee" means the Trustee; and

         "obligor" on the Notes and the Note Guarantees means the Company and
the Guarantors, respectively, and any successor obligor upon the Notes and the
Note Guarantees, respectively.

         All other terms used in this Agreement that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
have the meanings so assigned to them.

         Terms defined under the New Credit Agreement and referenced herein
shall have the meanings ascribed in the New Credit Agreement as of the date
hereof, notwithstanding any later modification or termination of the New Credit
Agreement, unless such modification is made in accordance with Article IX
hereof. Amendments to such definitions as used herein may only be made in
accordance with Article IX hereof.

         1.04 Accounting Terms; GAAP.

         Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that for purposes of determining compliance
with any covenant set forth in Article V, such terms shall be construed in
accordance with GAAP as in effect on the date of this Agreement applied on a
basis consistent with the application used in preparing the Borrowers' audited
financial statements referred to in Section 4.04. If any change in accounting
principles from those used in the preparation of the audited financial
statements referred to in Section 4.04 hereafter occasioned by the promulgation
of any rule, regulation, pronouncement or opinion by or required by the
Financial Accounting Standards Board (or successors thereto or agencies with
similar functions) would result in a change in the method of calculation of
financial covenants, standards or terms found in Article I or Article V, except
as provided in Section 9.07, the parties hereto agree to enter into negotiations
in order to amend such provisions so as to equitably reflect such changes with
the desired result that the criteria for evaluating the Company's financial
condition shall be the same after such change as if such change had not been
made; provided, however, the parties hereto agree to construe all terms of an
accounting or financial nature in accordance with GAAP as in effect prior to any
such change in accounting principles until the parties hereto have amended the
applicable provisions of this Agreement.

                                       31

<PAGE>

         1.05 Code.

         Any terms used in this Agreement that are defined in the Code shall be
construed and defined as set forth in the Code unless otherwise defined herein.

         1.06 Construction.

         Unless the context of this Agreement or any other Note Document clearly
requires otherwise, references to the plural include the singular, references to
the singular include the plural, the term "including" is not limiting, and the
term "or" has, except where otherwise indicated, the inclusive meaning
represented by the phrase "and/or." The words "hereof," "herein," "hereby,"
"hereunder," and similar terms in this Agreement or any other Note Document
refer to this Agreement or such other Note Document, as the case may be, as a
whole and not to any particular provision of this Agreement or such other Note
Document, as the case may be. Section, subsection, clause, schedule, and exhibit
references herein are to this Agreement unless otherwise specified. Any
reference in this Agreement or in the other Note Documents to any agreement,
instrument, or document shall include all alterations, amendments, changes,
extensions, modifications, renewals, replacements, substitutions, joinders, and
supplements, thereto and thereof, as applicable (subject to any restrictions on
such alterations, amendments, changes, extensions, modifications, renewals,
replacements, substitutions, joinders, and supplements set forth herein). Any
reference herein to any Person shall be construed to include such Person's
successors and assigns. Any requirement of a writing contained herein or in the
other Note Documents shall be satisfied by the transmission of a Record and any
Record transmitted shall constitute a representation and warranty as to the
accuracy and completeness of the information contained therein.

         1.07 Schedules and Exhibits.

         All of the schedules and exhibits attached to this Agreement, together
with any amendments, restatements, supplements, or other modifications to such
schedules and exhibits permitted hereunder shall be deemed incorporated herein
by reference.

                                   ARTICLE II

                                    THE NOTES

         2.01 Form and Dating.

         (a) General. The Class A Notes and Class B Notes and the related
Trustee's certificate of authentication shall be substantially in the form of
Exhibit A and Exhibit B hereto, respectively. Each Note shall include the Note
Guarantee in the form of Exhibit C attached hereto, executed by each of the
Guarantors existing on the date of the issuance of such Note, the terms of which
are incorporated in and made a part of this Indenture. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or usage
(provided that any such notation, legend, or endorsement is in a form reasonably
acceptable to the Required Holders). Each Note shall be dated the date of its
authentication. The Notes shall be in denominations of $1 and integral multiples
thereof. On the Issue Date, the purchasers of the Class B Notes shall be issued
Class B Definitive Notes.

                                       32

<PAGE>

         The terms and provisions contained in the Notes shall constitute, and
are hereby expressly made, a part of this Agreement and the Company, the
Guarantors and the Trustee, by their execution and delivery of this Agreement,
expressly agree to such terms and provisions and to be bound thereby. However,
to the extent any provision of any Note conflicts with the express provisions of
this Agreement, the provisions of this Agreement shall govern and be
controlling.

         (b) Global Notes. Class A Notes and Class B Notes issued in global form
shall be substantially in the form of Exhibit A and Exhibit B attached hereto,
respectively (including the Global Note Legend thereon and the "Schedule of
Exchanges of Interests in the Global Note" attached thereto). Class A Notes and
Class B Notes issued in definitive form shall be substantially in the form of
Exhibit A and Exhibit B attached hereto, respectively (but without the Global
Note Legend thereon and without the "Schedule of Exchanges of Interests in the
Global Note" attached thereto). Each Global Note shall represent such of the
outstanding Notes as shall be specified therein and each shall provide that it
shall represent the aggregate principal amount of outstanding Notes from time to
time endorsed thereon and that the aggregate principal amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions. Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the aggregate
principal amount of outstanding Notes represented thereby shall be made by the
Trustee or the Depositary Custodian, at the direction of the Trustee, in
accordance with instructions given by the Holder thereof as required by Section
2.06 hereof.

         2.02 Execution and Authentication.

         An Officer shall sign the Notes for the Company by manual or facsimile
signature, and attested by another Officer by manual or facsimile signature.

         If an Officer whose signature is on a Note no longer holds that office
at the time a Note is authenticated, the Note shall nevertheless be valid.

         A Note shall not be valid until authenticated by the manual signature
of the Trustee. The signature shall be conclusive evidence that the Note has
been authenticated under this Agreement. The form of Trustee's certificate of
authentication of the Notes shall be substantially as set forth in Exhibit A or
Exhibit B, as applicable, attached hereto.

         The Trustee shall authenticate Notes upon a written order of the
Company in the form of an Officer's Certificate of the Company (an
"Authentication Order"). Each such written order shall specify the amount of
Notes to be authenticated and the date on which the Notes are to be
authenticated, and whether the Notes are to be issued as certificated Notes or
Global Notes or such other information as the Trustee may reasonably request. In
addition, the first such written order from the Company shall be accompanied by
a reliance letter of counsel of the Company in a form reasonably satisfactory to
the Trustee.

         The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Notes. An authenticating agent may authenticate Notes
whenever the Trustee may do so. Each reference in this Agreement to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with Holders or the
Company.

                                       33

<PAGE>

         2.03 Registrar and Paying Agent.

         The Company shall maintain an office or agency where Notes may be
presented for registration of transfer or for exchange ("Registrar") and an
office or agency where Notes may be presented for payment ("Paying Agent")
within the City and State of New York. The Registrar shall keep a written
register with the name and address of each Holder and the principal amount and
stated interest of each Holder's Note, and of the transfer and exchange of each
Note. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term "Registrar" includes any co-registrar and the
term "Paying Agent" includes any additional paying agent. The Company may change
any Paying Agent or Registrar with the prior written consent of the Required
Holders. The Company shall notify the Trustee in writing of the name and address
of any Agent not a party to this Agreement. If the Company fails to appoint or
maintain another entity as Registrar or Paying Agent, the Trustee shall act as
such. The Company or any of its Subsidiaries may act as Paying Agent or
Registrar.

         The Company initially appoints The Depository Trust Company ("DTC") to
act as Depositary with respect to the Global Notes.

         The Company initially appoints the Trustee to act as the Registrar and
Paying Agent and to act as Depositary Custodian with respect to the Global
Notes.

         2.04 Paying Agent to Hold Money in Trust.

         The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of
principal, premium, fees or Additional Interest, if any, or interest on the
Notes, and will notify the Trustee of any default by the Company in making any
such payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment
over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying Agent. Upon
any bankruptcy or reorganization proceedings relating to the Company, the
Trustee shall serve as Paying Agent for the Notes.

         2.05 Holder Lists.

         The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
all Holders and shall otherwise comply with TIA Section 312(a). If the Trustee
is not the Registrar, the Company shall furnish to the Trustee at least seven
Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of the Holders of
Notes and the Company shall otherwise comply with TIA Section 312(a).

         2.06 Transfer and Exchange.

                                       34

<PAGE>

         (a) Transfer and Exchange of Global Notes. A Global Note may not be
transferred as a whole except by the Depositary to a nominee of the Depositary,
by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. All Global Notes will be exchanged by
the Company for Definitive Notes if (i) the Company delivers to the Trustee
notice from the Depositary that it is unwilling or unable to continue to act as
Depositary or that it is no longer a clearing agency registered under the
Exchange Act and, in either case, a successor Depositary is not appointed by the
Company within 120 days after the date of such notice from the Depositary or
(ii) the Company in its sole discretion determines that the Global Notes (in
whole but not in part) should be exchanged for Definitive Notes and delivers a
written notice to such effect to the Trustee. Upon the occurrence of either of
the preceding events in (i) or (ii) above, Definitive Notes shall be issued in
such names as the Depositary shall instruct the Trustee. Global Notes also may
be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and
2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu
of, a Global Note or any portion thereof, pursuant to this Section 2.06 or
Section 2.07 or 2.10 hereof, shall be authenticated and delivered in the form
of, and shall be, a Global Note. A Global Note may not be exchanged for another
Note other than as provided in this Section 2.06(a), however, beneficial
interests in a Global Note may be transferred and exchanged as provided in
Section 2.06(b), (c) or (f) hereof.

         (b) Transfer and Exchange of Beneficial Interests in the Global Notes.
The transfer and exchange of beneficial interests in the Global Notes shall be
effected through the Depositary, in accordance with the provisions of this
Agreement and the Applicable Procedures. Beneficial interests in the Class B
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to the extent required by the Securities Act. Transfers of
beneficial interests in the Global Notes also shall require compliance with
either subparagraph (i) or (ii) below, as applicable, as well as one or more of
the other following subparagraphs, as applicable:

                  (i) Transfer of Beneficial Interests in the Same Global Note.
         Beneficial interests in any Class B Global Note may be transferred to
         Persons who take delivery thereof in the form of a beneficial interest
         in the same Class B Global Note in accordance with the transfer
         restrictions set forth in the Private Placement Legend. Beneficial
         interests in any Class A Global Note may be transferred to Persons who
         take delivery thereof in the form of a beneficial interest in a Class A
         Global Note. No written orders or instructions shall be required to be
         delivered to the Registrar to effect the transfers described in this
         Section 2.06(b)(i).

                  (ii) All Other Transfers and Exchanges of Beneficial Interests
         in Global Notes. In connection with all transfers and exchanges of
         beneficial interests that are not subject to Section 2.06(b)(i) above,
         the transferor of such beneficial interest must deliver to the
         Registrar either (A) (1) a written order from a Participant or an
         Indirect Participant given to the Depositary in accordance with the
         Applicable Procedures directing the Depositary to credit or cause to be
         credited a beneficial interest in another Global Note in an amount
         equal to the beneficial interest to be transferred or exchanged and (2)
         instructions given in accordance with the Applicable Procedures
         containing information regarding the Participant account to be credited
         with such increase or (B) (1) a written order from a Participant or an
         Indirect Participant given to the Depositary in accordance

                                       35

<PAGE>

         with the Applicable Procedures directing the Depositary to cause to be
         issued a Definitive Note in an amount equal to the beneficial interest
         to be transferred or exchanged and (2) instructions given by the
         Depositary to the Registrar containing information regarding the Person
         in whose name such Definitive Note shall be registered to effect the
         transfer or exchange referred to in (1) above. Upon consummation of an
         Exchange Offer by the Company in accordance with Section 2.06(f)
         hereof, the requirements of this Section 2.06(b)(ii) shall be deemed to
         have been satisfied upon receipt by the Registrar of the instructions
         contained in the Letter of Transmittal delivered by the Holder of such
         beneficial interests in Class B Global Notes. Upon satisfaction of all
         of the requirements for transfer or exchange of beneficial interests in
         Global Notes contained in this Agreement and the Notes or otherwise
         applicable under the Securities Act, the Trustee shall adjust the
         principal amount of the relevant Global Note(s) pursuant to Section
         2.06(h) hereof.

                  (iii) Transfer of Beneficial Interests in a Class B Global
         Note to Another Restricted Global Note. A beneficial interest in any
         Class B Global Note may be transferred to a Person who takes delivery
         thereof in the form of a beneficial interest in another Class B Global
         Note if the transfer complies with the requirements of Section
         2.06(b)(ii) above and the Registrar receives from the holder of such
         beneficial interest a certificate if the Registrar so requests or if
         the Applicable Procedures so require, an opinion of counsel in form
         reasonably acceptable to the Registrar to the effect that such transfer
         is in compliance with the Securities Act.

                  (iv) Transfer and Exchange of Beneficial Interests in a Class
         B Global Note for Beneficial Interests in the Class A Global Note. A
         beneficial interest in any Class B Global Note may be exchanged by any
         holder thereof for a beneficial interest in a Class A Global Note or
         transferred to a Person who takes delivery thereof in the form of a
         beneficial interest in a Class A Global Note if the exchange or
         transfer complies with the requirements of Section 2.06(b)(ii) above
         and:

                           (1) such exchange or transfer is effected pursuant to
         the Exchange Offer in accordance with the Registration Rights Agreement
         and the holder of the beneficial interest to be transferred, in the
         case of an exchange, or the transferee, in the case of a transfer,
         certifies in the applicable Letter of Transmittal that it is not (1) a
         broker-dealer, (2) a Person participating in the distribution of the
         Exchange Notes or (3) a Person who is an affiliate (as defined in Rule
         144) of the Company;

                           (2) such transfer is effected pursuant to the Shelf
         Registration Statement in accordance with the Registration Rights
         Agreement; or

                           (3) the Registrar receives from the holder of such
         beneficial interest in a Class B Global Note; and if the Registrar so
         requests or if the Applicable Procedures so require, an opinion of
         counsel in form reasonably acceptable to the Registrar to the effect
         that such exchange or transfer is in compliance with the Securities Act
         and that the restrictions on transfer contained herein and in the Class
         B Global Note are no longer required in order to maintain compliance
         with the Securities Act.

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<PAGE>

         If any such transfer is effected pursuant to subparagraph (B) or (C)
above at a time when a Class A Global Note has not yet been issued, the Company
shall issue and, upon receipt of an Authentication Order in accordance with
Section 2.02 hereof, the Trustee shall authenticate one or more Class A Global
Notes in an aggregate principal amount equal to the aggregate principal amount
of beneficial interests transferred pursuant to subparagraph (B) or (C) above.

         Beneficial interests in a Class A Global Note cannot be exchanged for,
or transferred to Persons who take delivery thereof in the form of, a beneficial
interest in a Class B Global Note.

         (c) Transfer or Exchange of Beneficial Interest in Global Notes for
Definitive Notes.

                  (i) Beneficial Interests in Class B Global Notes to Class B
         Definitive Notes. If any holder of a beneficial interest in a Class B
         Global Note proposes to exchange such beneficial interest for a Class B
         Definitive Note or to transfer such beneficial interest to a Person who
         takes delivery thereof in the form of a Class B Definitive Note, then,
         upon receipt by the Registrar of documentation satisfactory to it,
         including without limitation, any legal opinions or certifications, the
         Trustee shall cause the aggregate principal amount of the applicable
         Global Note to be reduced accordingly pursuant to Section 2.06(h)
         hereof, and the Company shall execute and the Trustee shall
         authenticate and deliver to the Person designated in the instructions a
         Definitive Note in the appropriate principal amount. Any Definitive
         Note issued in exchange for a beneficial interest in a Class B Global
         Note pursuant to this Section 2.06(c) shall be registered in such name
         or names and in such authorized denomination or denominations as the
         holder of such beneficial interest shall instruct the Registrar through
         instructions from the Depositary and the Participant or Indirect
         Participant. The Trustee shall deliver such Definitive Notes to the
         Persons in whose names such Notes are so registered. Any Definitive
         Note issued in exchange for a beneficial interest in a Class B Global
         Note pursuant to this Section 2.06(c)(i) shall bear the Private
         Placement Legend and shall be subject to all restrictions on transfer
         contained therein.

                  (ii) Beneficial Interests in Class B Global Notes to Class A
         Definitive Notes. A holder of a beneficial interest in a Class B Global
         Note may exchange such beneficial interest for a Class A Definitive
         Note or may transfer such beneficial interest to a Person who takes
         delivery thereof in the form of a Class A Definitive Note only if:

                           (1) such exchange or transfer is effected pursuant to
         the Exchange Offer in accordance with the Registration Rights Agreement
         and the holder of such beneficial interest, in the case of an exchange,
         or the transferee, in the case of a transfer, certifies in the
         applicable Letter of Transmittal that it is not (1) a broker-dealer,
         (2) a Person participating in the distribution of the Exchange Notes or
         (3) a Person who is an affiliate (as defined in Rule 144) of the
         Company;

                           (2) such transfer is effected pursuant to the Shelf
         Registration Statement in accordance with the Registration Rights
         Agreement; or

                           (3) the Registrar receives, an opinion of counsel in
         form reasonably acceptable to the Registrar to the effect that such
         exchange or transfer is in compliance with the Securities Act and that
         the restrictions on transfer contained herein and in the

                                       37

<PAGE>

         Private Placement Legend are no longer required in order to maintain
         compliance with the Securities Act.

                  (iii) Beneficial Interests in Class A Global Notes to Class A
         Definitive Notes. If any holder of a beneficial interest in a Class A
         Global Note proposes to exchange such beneficial interest for a
         Definitive Note or to transfer such beneficial interest to a Person who
         takes delivery thereof in the form of a Definitive Note, then, upon
         satisfaction of the conditions set forth in Section 2.06(b)(ii) hereof,
         the Trustee shall cause the aggregate principal amount of the
         applicable Global Note to be reduced accordingly pursuant to Section
         2.06(h) hereof, and the Company shall execute and the Trustee shall
         authenticate and deliver to the Person designated in the instructions a
         Definitive Note in the appropriate principal amount. Any Definitive
         Note issued in exchange for a beneficial interest pursuant to this
         Section 2.06(c)(iii) shall be registered in such name or names and in
         such authorized denomination or denominations as the holder of such
         beneficial interest shall instruct the Registrar through instructions
         from the Depositary and the Participant or Indirect Participant. The
         Trustee shall deliver such Definitive Notes to the Persons in whose
         names such Notes are so registered. Any Definitive Note issued in
         exchange for a beneficial interest pursuant to this Section
         2.06(c)(iii) shall not bear the Private Placement Legend.

         (d) Transfer and Exchange of Definitive Notes for Beneficial Interests
in Global Notes.

                  (i) Class B Definitive Notes to Beneficial Interests in Class
         B Global Notes. If any Holder of a Class B Definitive Note proposes to
         exchange such Note for a beneficial interest in a Class B Global Note
         or to transfer such Class B Definitive Note to a Person who takes
         delivery thereof in the form of a beneficial interest in a Class B
         Global Note, then, upon receipt by the Registrar of documentation
         satisfactory to it, including, without limitation, any legal opinions
         or certifications, the Trustee shall cancel the Class B Definitive
         Note, and increase or cause to be increased the aggregate principal
         amount of the Class B Global Note.

                  (ii) Class B Definitive Notes to Beneficial Interests in Class
         A Global Notes. A Holder of a Class B Definitive Note may exchange such
         Note for a beneficial interest in a Class A Global Note or transfer
         such Class B Definitive Note to a Person who takes delivery thereof in
         the form of a beneficial interest in a Class A Global Note only if:

                           (1) such exchange or transfer is effected pursuant to
         the Exchange Offer in accordance with the Registration Rights Agreement
         and the Holder, in the case of an exchange, or the transferee, in the
         case of a transfer, certifies in the applicable Letter of Transmittal
         that it is not (1) a broker-dealer, (2) a Person participating in the
         distribution of the Exchange Notes or (3) a Person who is an affiliate
         (as defined in Rule 144) of the Company;

                           (2) such transfer is effected pursuant to the Shelf
         Registration Statement in accordance with the Registration Rights
         Agreement; or

                                       38

<PAGE>

                           (3) the Registrar receives or if the Registrar so
         requests or if the Applicable Procedures so require, an opinion of
         counsel in form reasonably acceptable to the Registrar to the effect
         that such exchange or transfer is in compliance with the Securities Act
         and that the restrictions on transfer contained herein and in the
         Private Placement Legend are no longer required in order to maintain
         compliance with the Securities Act.

         Upon satisfaction of the conditions of any of the subparagraphs in this
Section 2.06(d)(ii), the Trustee shall cancel the Class B Definitive Notes and
increase or cause to be increased the aggregate principal amount of the Class A
Global Note.

                  (iii) Class A Definitive Notes to Beneficial Interests in
         Class A Global Notes. A Holder of a Class A Definitive Note may
         exchange such Note for a beneficial interest in a Class A Global Note
         or transfer such Definitive Notes to a Person who takes delivery
         thereof in the form of a beneficial interest in a Class A Global Note
         at any time. Upon receipt of a request for such an exchange or
         transfer, the Trustee shall cancel the applicable Class A Definitive
         Note and increase or cause to be increased the aggregate principal
         amount of one of the Class A Global Notes.

         If any such exchange or transfer from a Definitive Note to a beneficial
interest is effected pursuant to subparagraphs (ii)(A), (ii)(B) or (iii) above
at a time when a Global Note has not yet been issued, the Company shall issue
and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate one or more Global Notes in an aggregate
principal amount equal to the principal amount of Definitive Notes so
transferred.

         (e) Transfer and Exchange of Definitive Notes for Definitive Notes.
Upon request by a Holder of Definitive Notes and such Holder's compliance with
the provisions of this Section 2.06(e), the Registrar shall register the
transfer or exchange of Definitive Notes. Prior to such registration of transfer
or exchange, the requesting Holder shall present or surrender to the Registrar
the Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.06(e).

                  (i) Class B Definitive Notes to Class B Definitive Notes. Any
         Class B Definitive Note may be transferred to and registered in the
         name of Persons who take delivery thereof in the form of a Class B
         Definitive Note if the Registrar receives such legal opinions and
         certifications as it determines is reasonably necessary to ensure that
         such exchange or transfer is in compliance with the Securities Act.

                  (ii) Class B Definitive Notes to Class A Definitive Notes. Any
         Class B Definitive Note may be exchanged by the Holder thereof for a
         Class A Definitive Note or transferred to a Person or Persons who take
         delivery thereof in the form of a Class A Definitive Note if:

                           (1) such exchange or transfer is effected pursuant to
         the Exchange Offer in accordance with the Registration Rights Agreement
         and the Holder, in the case

                                       39

<PAGE>

         of an exchange, or the transferee, in the case of a transfer, certifies
         in the applicable Letter of Transmittal that it is not (1) a
         broker-dealer, (2) a Person participating in the distribution of the
         Exchange Notes or (3) a Person who is an affiliate (as defined in Rule
         144) of the Company;

                           (2) any such transfer is effected pursuant to the
         Shelf Registration Statement in accordance with the Registration Rights
         Agreement; or

                           (3) the Registrar receives or if the Registrar so
         requests, an opinion of counsel in form reasonably acceptable to the
         Company to the effect that such exchange or transfer is in compliance
         with the Securities Act and that the restrictions on transfer contained
         herein and in the Private Placement Legend are no longer required in
         order to maintain compliance with the Securities Act.

                  (iii) Class A Definitive Notes to Class A Definitive Notes. A
         Holder of Class A Definitive Notes may transfer such Notes to a Person
         who takes delivery thereof in the form of a Class A Definitive Note.
         Upon receipt of a request to register such a transfer, the Registrar
         shall register the Class A Definitive Notes pursuant to the
         instructions from the Holder thereof.

         (f) Exchange Offer. Upon the occurrence of the Exchange Offer in
accordance with the Registration Rights Agreement, the Company shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.02, the
Trustee shall authenticate (i) one or more Class A Global Notes in an aggregate
principal amount equal to the principal amount of the beneficial interests in
the Class B Global Notes tendered for acceptance by Persons that certify in the
applicable Letters of Transmittal that (x) they are not broker-dealers, (y) they
are not participating in a distribution of the Exchange Notes and (z) they are
not affiliates (as defined in Rule 144) of the Company, and accepted for
exchange in the Exchange Offer and (ii) Class A Definitive Notes in an aggregate
principal amount equal to the principal amount of the Class B Definitive Notes
accepted for exchange in the Exchange Offer. Concurrently with the issuance of
such Notes, the Trustee shall cause the aggregate principal amount of the
applicable Class B Global Notes to be reduced accordingly, and the Company shall
execute and the Trustee shall authenticate and deliver to the Persons designated
by the Holders of Class B Definitive Notes so accepted Class A Definitive Notes
in the appropriate principal amount.

         (g) Legends.

                  (i) The following legend shall appear on the face of all
         Global Notes issued under this Agreement:

                  "THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
                  INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR
                  THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
                  TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT
                  (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE
                  REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS
                  GLOBAL NOTE MAY BE

                                       40

<PAGE>

                  EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a)
                  OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO
                  THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
                  INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
                  SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
                  COMPANY."

                  (ii) The following legend shall appear on all Class B Notes:

                  "THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
                  1933, AS AMENDED, NOR UNDER ANY STATE SECURITIES LAW AND MAY
                  NOT BE PLEDGED, SOLD, ASSIGNED OR TRANSFERRED UNLESS (I) A
                  REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER
                  THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
                  AND ANY APPLICABLE STATE SECURITIES LAW REQUIREMENTS HAVE BEEN
                  MET OR (II) EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS
                  UNDER THE SECURITIES ACT AND THE REGISTRATION OR QUALIFICATION
                  REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS ARE
                  AVAILABLE."

         (h) Cancellation and/or Adjustment of Global Notes. At such time as all
beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note shall be returned to or
retained and canceled by the Trustee in accordance with Section 2.11 hereof. At
any time prior to such cancellation, if any beneficial interest in a Global Note
is exchanged for or transferred to a Person who will take delivery thereof in
the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note, such other Global Note shall be increased accordingly
and an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

         (i) General Provisions Relating to Transfers and Exchanges.

                  (i) To permit registrations of transfers and exchanges, the
         Company shall execute and the Trustee shall authenticate Global Notes
         and Definitive Notes upon the Company's order or at the Registrar's
         request.

                  (ii) No service charge shall be made to a holder of a
         beneficial interest in a Global Note or to a Holder of a Definitive
         Note for any registration of transfer or exchange, but the Company may
         require payment of a sum sufficient to cover any transfer tax or
         similar governmental charge payable in connection therewith (other than
         any such transfer taxes or similar governmental charge payable upon
         exchange or transfer pursuant to Sections 2.10, 3.06, 4.15 and 9.05
         hereof).

                                       41

<PAGE>

                  (iii) The Registrar shall not be required to register the
         transfer of or exchange any Note selected for redemption in whole or in
         part, except the unredeemed portion of any Note being redeemed in part.

                  (iv) All Global Notes and Definitive Notes issued upon any
         registration of transfer or exchange of Global Notes or Definitive
         Notes shall be the valid obligations of the Company, evidencing the
         same debt, and entitled to the same benefits under this Agreement, as
         the Global Notes or Definitive Notes surrendered upon such registration
         of transfer or exchange.

                  (v) The Company shall not be required (A) to issue, to
         register the transfer of or to exchange any Notes during a period
         beginning at the opening of business 15 days before the day of any
         selection of Notes for redemption under Section 3.02 hereof and ending
         at the close of business on the day of selection, (B) to register the
         transfer of or to exchange any Note so selected for redemption in whole
         or in part, except the unredeemed portion of any Note being redeemed in
         part or (C) to register the transfer of or to exchange a Note between a
         record date and the next succeeding interest payment date.

                  (vi) Prior to due presentment for the registration of a
         transfer of any Note, the Trustee, any Agent and the Company may deem
         and treat the Person in whose name any Note is registered as the
         absolute owner of such Note for the purpose of receiving payment of
         principal of and interest on such Notes and for all other purposes, and
         none of the Trustee, any Agent or the Company shall be affected by
         notice to the contrary.

                  (vii) The Trustee shall authenticate Global Notes and
         Definitive Notes in accordance with the provisions of Section 2.02
         hereof.

                  (viii) All certifications, certificates and opinions of
         counsel required to be submitted to the Registrar pursuant to this
         Section 2.06 to effect a registration of transfer or exchange may be
         submitted by facsimile.

                  (ix) Each Holder agrees to indemnify the Company and the
         Trustee against any liability that may result from the transfer,
         exchange or assignment by such Holder of such Holder's Note in
         violation of any provision of this Agreement and/or applicable Unites
         States federal or state securities law.

                  (x) The Trustee shall have no obligation or duty to monitor,
         determine or inquire as to compliance with any restrictions on transfer
         imposed under this Agreement or under applicable law with respect to
         any transfer of any interest in any Note (including any transfers
         between or among Depositary Participants or beneficial owners of
         interests in any Global Note) other than to require delivery of such
         certificates and other documentation or evidence as are expressly
         required by, and to do so if and when expressly required by the terms
         of, this Agreement, and to examine the same to determine substantial
         compliance as to form with the express requirements hereof.

                                       42

<PAGE>

         2.07 Replacement Notes.

         If any mutilated Note is surrendered to the Trustee or the Company and
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Note, the Company shall issue and the Trustee, upon receipt of an
Authentication Order, shall authenticate a replacement Note if the requirements
of this Agreement are met. An indemnity bond must be supplied by the Holder that
is sufficient in the judgment of the Trustee and the Company to protect the
Company, the Trustee, any Agent and any authenticating agent from any loss that
any of them may suffer if a Note is replaced. The Company may charge for its
expenses in replacing a Note.

         Every replacement Note is an additional obligation of the Company and
shall be entitled to all of the benefits of this Agreement equally and
proportionately with all other Notes duly issued hereunder.

         2.08 Outstanding Notes.

         The Notes outstanding at any time are all the Notes authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Note effected by the
Trustee in accordance with the provisions hereof, and those described in this
Section as not outstanding. Except as set forth in Section 2.09 hereof, a Note
does not cease to be outstanding because the Company or an Affiliate of the
Company holds the Note.

         If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a bona fide purchaser.

         If the principal amount of any Note is considered paid under Section
4.01 hereof, it ceases to be outstanding and interest on it ceases to accrue.

         If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds, on a redemption date or maturity date, money
sufficient to pay Notes payable on that date, then on and after that date such
Notes shall be deemed to be no longer outstanding and shall cease to accrue
interest.

         2.09 Treasury Notes.

         In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by the
Company, or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company, shall be considered as
though not outstanding, except that for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent,
only Notes as to which a Responsible Officer of the Trustee has actual knowledge
are so owned shall be so disregarded.

                                       43

<PAGE>

         The Company shall notify the Trustee and the Holders in writing
promptly upon the acquisition of any Notes by the Company or any Person directly
or indirectly controlling or controlled by or under direct or indirect common
control with the Company.

         2.10 Temporary Notes.

         Until certificates representing Notes are ready for delivery, the
Company may prepare and the Trustee, upon receipt of an Authentication Order,
shall authenticate temporary Notes. Temporary Notes shall be substantially in
the form of certificated Notes but may have variations that the Company
considers appropriate for temporary Notes and as shall be reasonably acceptable
to the Trustee. Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate Definitive Notes in exchange for temporary Notes.

         Holders of temporary Notes shall be entitled to all of the benefits of
this Agreement.

         2.11 Cancellation.

         The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Notes surrendered to them for registration of transfer, exchange or payment. The
Trustee and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and shall dispose of
canceled Notes in accordance with its procedures for the disposition of canceled
securities in effect as of the date of such disposition (subject to the record
retention requirement of the Exchange Act). Certification of the disposition of
all canceled Notes shall be delivered to the Company. The Company may not issue
new Notes to replace Notes that it has paid or that have been delivered to the
Trustee for cancellation.

         2.12 Defaulted Interest.

         If the Company defaults in a payment of interest on the Notes, it shall
pay the defaulted interest in any lawful manner plus, to the extent lawful,
interest payable on the defaulted interest, to the Persons who are Holders on a
subsequent special record date, in each case at the rate provided in the Notes
and in Section 4.01 hereof. The Company shall notify the Trustee in writing of
the amount of defaulted interest proposed to be paid on each Note and the date
of the proposed payment. The Company shall fix or cause to be fixed each such
special record date and payment date; provided that no such special record date
shall be less than 10 days prior to the related payment date for such defaulted
interest. At least 15 days before the special record date, the Company (or, upon
the written request of the Company, the Trustee in the name and at the expense
of the Company) shall mail or cause to be mailed to Holders a notice that states
the special record date, the related payment date and the amount of such
interest to be paid.

         2.13 CUSIP Numbers.

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

                                       44

<PAGE>

the Notes, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company will promptly notify the Trustee of any
change in the "CUSIP" numbers.

         2.14 Deposit of Moneys.

         Subject to Section 3.05, prior to 11:00 a.m. (New York, New York time)
on each date on which the principal of, premium, fees and Additional Interest,
if any, and interest on the Notes are due, the Company shall deposit with the
Trustee or Paying Agent in immediately available funds money sufficient to make
cash payments, if any, due on such date in a timely manner which permits the
Trustee or such Paying Agent to remit payment to the Holders on such date.

                                  ARTICLE III

                            REDEMPTION AND PREPAYMENT

         3.01 Notices to the Trustee.

         If the Company elects to redeem Notes pursuant to the optional
redemption provisions of Section 3.07 hereof, it shall furnish to the Trustee,
at least 30 days but not more than 60 days before a redemption date, an
Officer's Certificate setting forth (i) the clause of this Agreement pursuant to
which the redemption shall occur, (ii) the redemption date, (iii) the principal
amount of Notes to be redeemed and (iv) the redemption price.

         3.02 Selection of Notes to Be Redeemed.

         If less than all of the Notes are to be redeemed or purchased in an
offer to purchase at any time, the Trustee shall select the Notes to be redeemed
or purchased among the Holders of the Notes in compliance with the requirements
of the principal national securities exchange, if any, on which the Notes are
listed or, if the Notes are not so listed, on a pro rata basis, by lot or in
accordance with any other method the Trustee considers fair and appropriate. In
the event of partial redemption by lot, the particular Notes to be redeemed
shall be selected, unless otherwise provided herein, not less than 30 nor more
than 60 days prior to the redemption date by the Trustee from the outstanding
Notes not previously called for redemption. Further, in the event of a partial
redemption in accordance with Section 3.07 hereof, selection of the Notes or
portions thereof for redemption shall be made by the Trustee only on a pro rata
basis or on as nearly a pro rata basis as is practicable (subject to the
procedures of the DTC), unless such method is otherwise prohibited.

         The Trustee shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial
redemption, the principal amount thereof to be redeemed. Notes and portions of
Notes selected shall be in amounts of $1. Except as provided in the preceding
sentence, provisions of this Agreement that apply to Notes called for redemption
also apply to portions of Notes called for redemption.

                                       45

<PAGE>

         3.03 Notice of Redemption.

         At least 30 days but not more than 60 days before a redemption date,
the Company shall mail or cause to be mailed, by first class mail, a notice of
redemption to each Holder whose Notes are to be redeemed at its registered
address.

         The notice shall identify the Notes (including the CUSIP number, if
any) to be redeemed and shall state:

         (a) the redemption date;

         (b) the redemption price;

         (c) if any Note is being redeemed in part, the portion of the principal
amount of such Note to be redeemed and that, after the redemption date upon
surrender of such Note, a new Note or Notes in principal amount equal to the
unredeemed portion shall be issued upon cancellation of the original Note;

         (d) the name and address of the Paying Agent;

         (e) that Notes called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

         (f) that, unless the Company defaults in making such redemption
payment, interest on Notes called for redemption ceases to accrue on and after
the redemption date;

         (g) the paragraph of the Notes and/or Section of this Agreement
pursuant to which the Notes called for redemption are being redeemed; and

         (h) that no representation is made as to the correctness or accuracy of
the CUSIP number, if any, listed in such notice or printed on the Notes.

         At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; provided that the Company
shall have delivered to the Trustee, at least 15 days prior to the date of the
mailing of such notice, an Officer's Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice
as provided in this Section 3.03.

         3.04 Effect of Notice of Redemption.

         Once a notice of redemption is mailed in accordance with Section 3.03
hereof, Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price, including any premium plus accrued and
unpaid interest through the redemption date. A notice of redemption may not be
conditional.

                                       46

<PAGE>

         3.05 Deposit of Redemption Price.

         One Business Day prior to the redemption date, the Company shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the
redemption price of and accrued interest on all Notes to be redeemed on that
date. The Trustee or the Paying Agent shall promptly return to the Company any
money deposited with the Trustee or the Paying Agent by the Company in excess of
the amounts necessary to pay the redemption price of, and accrued interest on,
all Notes to be redeemed.

         If the Company complies with the provisions of the preceding paragraph,
on and after the redemption date, interest shall cease to accrue on the Notes or
the portions of Notes called for redemption. If a Note is redeemed on or after
an interest record date but on or prior to the related interest payment date,
then any accrued and unpaid interest shall be paid to the Person in whose name
such Note was registered at the close of business on such record date. If any
Note called for redemption shall not be so paid upon surrender for redemption
because of the failure of the Company to comply with the preceding paragraph,
interest shall be paid on the unpaid principal, from the redemption date until
such principal is paid, and to the extent lawful on any interest not paid on
such unpaid principal, in each case at the rate provided in the Notes and in
Section 4.01 hereof.

         3.06 Notes Redeemed in Part.

         Upon surrender of a Note that is redeemed in part, the Company shall
issue and, upon the Company's written request, the Trustee shall authenticate
for the Holder at the expense of the Company a new Note equal in principal
amount to the unredeemed portion of the Note surrendered.

         3.07 Optional Redemption.

         (a) The Company shall not have the option to redeem the Notes pursuant
to this Section 3.07 prior to March 16, 2005. On or after March 16, 2005, the
Company shall have the option to redeem the Notes, in whole or in part, at the
redemption prices (expressed as percentages of principal amount) set forth
below, plus accrued and unpaid interest thereon to the applicable redemption
date, if redeemed during the 12-month period beginning on March 16 of the years
indicated below:

<TABLE>
<CAPTION>
Year                   Percentage
----                   ----------
<S>                    <C>
2005                       105.50%
2006                       104.50%
2007                       101.00%
2008 and thereafter        100.00%
</TABLE>

                                       47

<PAGE>

         (b) Any redemption pursuant to this Section 3.07 shall be made pursuant
to the provisions of Sections 3.01 through 3.06 hereof.

         3.08 Mandatory Redemption.

         Neither the Company nor the Guarantors shall be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

                                   ARTICLE IV

                              AFFIRMATIVE COVENANTS

         Each Note Party covenants and agrees that, until payment in full and
satisfaction or discharge of all Obligations hereunder, it will, and it will
cause each of its Subsidiaries to, do all of the following.

         4.01 Payment of Notes.

         The Company shall pay or cause to be paid the principal of, premium, if
any, fees and Additional Interest, if any, and interest on the Notes on the
dates and in the manner provided in this Agreement and in the Notes. Principal,
premium, fees, Additional Interest, if any, and interest shall be considered
paid on the date due if the Paying Agent, if other than any Note Party, or any
affiliate or subsidiary thereof, holds as of 12:00 noon Eastern Time on the due
date money deposited by the Company in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, fees,
Additional Interest, if any, and interest then due and the Paying Agent has not
received instructions from any Note Party, any affiliate or subsidiary thereof,
not to make such payment or is not prohibited from paying such payments to the
Holders of the Notes pursuant to this Agreement and the Notes.

         Upon the occurrence and during the continuation of an Event of Default
and in any event from and after the maturity hereof, the principal amount of the
Notes and all other Obligations owing under the Note Documents (whether overdue
premium or installments or interest or otherwise) shall bear, and the Company
shall pay from time to time on demand, interest at a rate per annum that is two
percentage points (2.0%) in excess of the per annum rate otherwise applicable
hereunder and the other Note Documents.

         In addition to and not in substitution of the foregoing, Additional
Interest shall accrue, and the Company shall pay the same as and when due, in
accordance with the Indenture and the other Note Documents.

         4.02 Maintenance of Office or Agency.

         The Company shall maintain in the Borough of Manhattan, The City of New
York, an office or agency (which may be an office of the Trustee or an affiliate
of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Notes and this Agreement may be served. The
Company shall give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company
shall fail to

                                       48

<PAGE>

maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee.

         The Company may also from time to time designate one or more other
offices or agencies where the Notes may be presented or surrendered for any or
all such purposes and may from time to time rescind such designations; provided
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain an office or agency in the Borough of Manhattan,
The City of New York for such purposes. The Company shall give prompt written
notice to the Trustee of any such designation or rescission and of any change in
the location of any such other office or agency.

         The Company hereby designates the Corporate Trust Office of the Trustee
as one such office or agency of the Company in accordance with Section 2.03.

         4.03 Accounting System.

         The Company shall maintain, and shall cause each of the other Borrowers
and the Subsidiaries of each Borrower to maintain, a system of accounting that
enables such Persons to produce financial statements in accordance with GAAP and
maintain records pertaining to the Collateral that contain information as from
time to time may be required hereunder.

         4.04 Financial Statements, Reports, Certificates.

         The Company shall deliver to the Trustee:

                  (a) as soon as available, but in any event within 45 days
after the end of each month during each of the Company's fiscal years,

                           (i) a Company prepared Consolidated balance sheet,
                  income statement, and statement of cash flow covering the
                  Company's and its Subsidiaries' operations during such month
                  and the fiscal year to date, together with a comparison of
                  such financial statements to (A) Company's Projections (as
                  defined in the New Credit Agreement) delivered prior to the
                  Issue Date or pursuant to Section 4.04(c) and (B) the
                  Consolidated balance sheet, income statement, and statement of
                  cash flow covering Company's and its Subsidiaries' operations
                  for such corresponding period in the immediately preceding
                  fiscal year,

                           (ii) a company prepared schedule detailing Company's
                  Consolidated EBITDA as of the end of each month for the
                  13-month period then ended,

                           (iii) a certificate signed by a chief financial
                  officer or a principal accounting officer of the Company to
                  the effect that:

                                    (A) the financial statements and other
                           financial information delivered hereunder have been
                           prepared in accordance with GAAP (except for the lack
                           of footnotes and being subject to year-end audit
                           adjustments)

                                       49

<PAGE>

                           and fairly present in all material respects the
                           financial condition of the Company and its
                           Subsidiaries,

                                    (B) the representations and warranties of
                           Borrowers contained in the New Credit Agreement and
                           the other Loan Documents (as defined in the New
                           Credit Agreement) are true and correct in all
                           material respects on and as of the date of such
                           certificate, as though made on and as of such date
                           (except to the extent that such representations and
                           warranties relate solely to an earlier date), and

                                    (C) there does not exist any condition or
                           event that constitutes a Default or Event of Default
                           (or, to the extent of any non-compliance, describing
                           such non-compliance as to which he or she may have
                           knowledge and what action the Note Parties have
                           taken, are taking, or propose to take with respect
                           thereto); and

                           (iv) for each month that is the date on which a
                  financial covenant in Section 5.19 is to be tested, a
                  Compliance Certificate (as defined in the New Credit
                  Agreement) demonstrating, in reasonable detail, compliance at
                  the end of such period with the applicable financial covenants
                  contained in Section 5.19, together with a reconciliation of
                  the company prepared Consolidated balance sheet, income
                  statement, and statement of cash flow for Company and its
                  Subsidiaries for the 3-month period then ended to the audited
                  financial statements contained in the 4 most recent Form 10-Q
                  quarterly reports and the most recent Form 10-K annual report
                  filed by Company and its Subsidiaries,

                  (b) as soon as available, but in any event within 120 days
after the end of each of Company's fiscal years,

                           (i) Consolidated financial statements of the Company
                  and its Subsidiaries for each such fiscal year, audited by
                  nationally recognized independent certified public accountants
                  and certified, without any qualifications, by such accountants
                  to have been prepared in accordance with GAAP (such audited
                  financial statements to include a balance sheet, income
                  statement, and statement of cash flow and, if prepared, such
                  accountants' letter to management), and

                           (ii) a certificate of such accountants addressed to
                  the Trustee stating that such accountants do not have
                  knowledge of the existence of any Default or Event of Default
                  under Section 6.01,

                  (c) as soon as available, but in any event within 30 days
prior to the start of each of Company's fiscal years, copies of Company's
Projections (as defined in the New Credit Agreement), for the forthcoming 3
years, year by year, and for the forthcoming fiscal year, month by month,
certified by the chief financial officer of Company (i) as being such officer's
good faith best estimate of the financial performance of Company and its
Subsidiaries on a

                                       50

<PAGE>

Consolidated basis during the period covered thereby and (ii) as being in form
and substance (including as to scope and underlying assumptions) as delivered to
the Bank Lenders' Agent,

                  (d) if, when and to the extent filed by any Note Party with
the SEC or any other Governmental Authority,

                           (i) Form 10-Q quarterly reports, Form 10-K annual
                  reports, and Form 8-K current reports,

                           (ii) any other filings made by any Note Party with
                  the SEC,

                           (iii) copies of Borrowers' federal income tax
                  returns, and any amendments thereto, filed with the IRS, and

                           (iv) any other information that is provided by the
                  Company to its shareholders generally,

                  (e) if and when filed by any Note Party and if requested by
Trustee, reasonably satisfactory evidence of payment of applicable excise and
property taxes in each jurisdictions in which (i) any Note Party conducts
business, owns real property or is required to pay any such excise or real
property tax, (ii) where any Note Party's failure to pay any such applicable
excise or property tax would result in a Lien on the properties or assets of any
Note Party, or (iii) where any Note Party's failure to pay any such applicable
excise tax reasonably could be expected to result in a Material Adverse Change,

                  (f) promptly after the commencement thereof, notice of all
actions, suits or proceedings brought by or against any Note Party before any
Governmental Authority that, if determined adversely to such Note Party, could
reasonably be expected to result in a Material Adverse Change,

                  (g) as soon as a Borrower has knowledge of any event or
condition that constitutes a Default or an Event of Default, notice thereof and
a statement of the curative action that Borrowers propose to take with respect
thereto,

                  (h) as soon as a Borrower has actual knowledge of any event or
condition that constitutes a default or an event of default under the New AMERCO
Note Documents, the New Credit Agreement or the other Loan Documents (as defined
in the New Credit Agreement), or any Funded Debt (including, without limitation,
any TRAC Lease Transaction, the PMCC Like Kind Exchange Lease or the PMCC
Leveraged Lease) or any notice, call, default of event of default under any
Support Party Agreement, notice thereof and a statement of the curative action
that Borrowers or Guarantors, as applicable, propose to take with respect
thereto,

                  (i) such information as may, from time to time, be necessary
to comply with any applicable provision of TIA Section 314(a), and

                  (j) such information provided to the Bank Lenders' Agent
relating to the Collateral pursuant to Section 6.2 of the New Credit Agreement.

                                       51

<PAGE>

         To satisfy the delivery requirements, the Company and the Guarantors,
if applicable, may file or post electronically such information required to be
delivered to the Trustee and the Holders of the Notes, if applicable, pursuant
to this Section 4.04 and Section 4.05 in a manner and method mutually acceptable
to the Company and the Trustee and that provides for the access to such
information by the Trustee, and upon request of any Holder in accordance with
Section 7.06, the access to such information by such Holder.

         Delivery of all reports, information and documents to the Trustee under
this Agreement is for informational purposes only and the Trustee's receipt of
such shall not constitute constructive notice of any information contained
therein or determinable therefrom, including compliance with any of the
Company's covenants hereunder.

         The Trustee shall not disclose any material, non-public information
(all information received pursuant to this Section 4.04 or pursuant to other
provisions of this Agreement and identified as such in writing by the Company on
the face thereof, except for information received pursuant to Section 4.04(d)
and Section 4.04(i)) received from any Note Party to a Holder of the Notes
unless such Holder enters into a standstill and confidentiality agreement in a
form and substance satisfactory to the Company and the Trustee, and which shall
provide that the recipients of such information shall indemnify the Trustee
against any misuse or improper disclosure of such information.

         In addition to the financial statements referred to above, Borrowers
agree to deliver financial statements prepared on both a consolidated and
consolidating basis (in accordance with GAAP) and a Consolidated basis (as
defined herein) and that, except for the Insurance Subsidiaries, no Borrower, or
any Subsidiary of a Borrower, will have a fiscal year different from that of the
Company. Borrowers agree to cooperate with the Bank Lenders' Agent to allow Bank
Lenders' Agent to consult with their certified public accountants if Bank
Lenders' Agent reasonably requests the right to do so and that, in such
connection, their independent certified public accountants are authorized to
communicate with Bank Lenders' Agent and to release to Bank Lenders' Agent
whatever financial information concerning Borrowers or their Subsidiaries that
Bank Lenders' Agent reasonably may request and shall deliver copies of such
information to the Trustee. Each Borrower waives the right to assert a
confidential relationship, if any, it may have with any accounting firm or
service bureau in connection with any information requested by Bank Lenders'
Agent pursuant to or in accordance with this Agreement, and agree that Bank
Lenders' Agent may contact directly any such accounting firm or service bureau
in order to obtain such information; provided, however, so long as no Event of
Default has occurred and is continuing, Bank Lenders' Agent shall give Borrowers
a copy of any written request for information from Bank Lenders' Agent to such
accounting firm or bureau services and Borrowers shall have an opportunity to
attend any meeting between Bank Lenders' Agent and such accounting firm or
bureau services with respect to such information requests.

         4.05 Guarantor Reports.

         The Company shall cause each Guarantor to deliver its annual financial
statements at the time when the Company provides its audited financial
statements to the Trustee, but only to the extent such Guarantor's financial
statements are not consolidated with the Company's annual

                                       52

<PAGE>

financial statements and copies of all federal income tax returns as soon as the
same are available and in any event no later than 30 days after the same are
required to be filed by law.

         4.06 Maintenance of Properties.

         The Company shall, and the Company shall cause each of the other
Borrowers and the Subsidiaries of each Borrower to, maintain and preserve all of
its properties which are necessary or useful in the proper conduct of its
business in good working order and condition, ordinary wear and tear excepted,
and comply at all times with the provisions of all leases to which it is a party
as lessee, so as to prevent any loss or forfeiture thereof or thereunder.

         4.07 Taxes.

         The Borrowers shall, and shall cause each of its Subsidiaries to, pay
in full all assessments and taxes, whether real, personal, or otherwise, due or
payable by, or imposed, levied, or assessed against any Borrower, any Subsidiary
of a Borrower or any of their assets to be paid in full, not less than 30 days
before the earlier of (a) delinquency, or (b) the imposition of any additional
amounts, fines or penalties or (c) before the expiration of any extension
period, except to the extent that the validity of such assessment or tax shall
be the subject of a Permitted Protest. The Company shall, and shall cause each
of the other Borrowers and the Subsidiaries of each Borrower to, make timely
payment or deposit of all tax payments and withholding taxes required of it by
any Borrower or its Subsidiaries under Applicable Laws, including the Canadian
Income Tax Act, Statutory Lien Payments, those laws concerning F.I.C.A.,
F.U.T.A., state or provincial disability, and local, state, provincial and
federal income taxes, and will, upon request, furnish the Trustee with proof
reasonably satisfactory to the Trustee indicating that the applicable Borrower
or its Subsidiary has made such payments or deposits. Upon the request of the
Trustee, Borrowers shall deliver reasonably satisfactory evidence of payment of
applicable excise taxes in each jurisdiction in which any Borrower or its
Subsidiary is required to pay any such excise tax.

         4.08 Insurance.

         (a) The Company shall, and shall cause each of the other Borrowers and
the Subsidiaries of each Borrower to, at their expense, maintain insurance
respecting their respective assets wherever located, covering loss or damage by
fire, theft, explosion, flood (with respect to any property or assets located in
a flood zone), earthquake (in the event the probable maximum loss with respect
to such property or assets is equal to or greater than 20), and all other
hazards and risks as ordinarily are insured against by other Persons engaged in
the same or similar businesses. The Company also shall (and shall cause the
other Borrowers and the Subsidiaries of each Borrower to) maintain business
interruption, public liability, and product liability insurance, as well as
insurance against larceny, embezzlement, and criminal misappropriation. All such
policies of insurance shall be in such amounts as are reasonably satisfactory to
Bank Lenders' Agent and the Trustee. Borrowers shall deliver copies of all such
policies to Bank Lenders' Agent and the Trustee with a satisfactory lender's
loss payable endorsement naming Bank Lenders' Agent and the Trustee as loss
payees or additional insured, as appropriate and as their interests may appear.
Each policy of insurance or endorsement shall contain a clause requiring the
insurer to give not

                                       53

<PAGE>

less than 30 days prior written notice to Bank Lenders' Agent and the Trustee in
the event of cancellation of the policy for any reason whatsoever.

         (b) The Company shall give Bank Lenders' Agent and the Trustee prompt
notice of any loss in excess of $100,000 for Vehicles or other personal property
covered by such insurance and any loss in excess of $500,000 for Real Property
covered by insurance. Other than with respect to Real Property subject to the
Synthetic Leases, Bank Lenders' Agent shall have the exclusive right to adjust
any losses payable under any such insurance policies in excess of $500,000 (or
in any amount during the existence of an Event of Default), without any
liability to Borrowers whatsoever in respect of such adjustments. Adjustments of
any losses with respect to Borrowers' Real Property subject to the Synthetic
Leases shall be subject to the terms thereof. Any monies received as payment for
any loss under any insurance policy mentioned above (other than liability
insurance policies) or as payment of any award or compensation for condemnation
or taking by eminent domain (other than any such award or compensation payable
with respect to Real Property subject to the Synthetic Leases), shall be paid
over to Bank Lenders' Agent and shall be applied at the option of the Required
Lenders either to the prepayment of the Obligations (as defined in the New
Credit Agreement) or shall be disbursed to the Company under staged payment
terms reasonably satisfactory to the Required Lenders for application to the
cost of repairs, replacements, or restorations. Application of any such award or
compensation payable with respect to Real Property subject to the Synthetic
Leases shall be subject to the terms thereof. Any such repairs, replacements, or
restorations shall be effected with reasonable promptness and shall be of a
value at least equal to the value of the items or property destroyed prior to
such damage or destruction.

         (c) The Note Parties shall not take out separate insurance concurrent
in form or contributing in the event of loss with that required to be maintained
under this Section 4.08, unless Bank Lenders' Agent and the Trustee are included
thereon as named insureds with the loss payable to Bank Lenders' Agent and the
Trustee under a lender's loss payable endorsement or its equivalent. The Company
immediately shall notify Bank Lenders' Agent and the Trustee whenever such
separate insurance is taken out, specifying the insurer thereunder and full
particulars as to the policies evidencing the same, and copies of such policies
promptly shall be provided to Bank Lenders' Agent and the Trustee.

         (d) The Note Parties shall maintain their insurance program with
respect to the Vehicles as in effect on the Issue Date with RepWest or, upon the
consent of Bank Lenders' Agent, which consent shall not be unreasonably
withheld, with such other insurer as may be agreed upon by Borrowers and Bank
Lenders' Agent so long as the terms of such replacement self-insurance program
are reasonably similar to the insurance program with RepWest as of the Issue
Date.

         4.09 Location of Equipment.

         The Note Parties shall store the Equipment of Note Parties only at the
Real Property and the locations of the U-Haul Dealers named on the Dealer List,
excluding (a) Vehicles in-transit from one U-Haul Dealer location to another
U-Haul Dealer location, (b) Vehicles that have been leased in the ordinary
course of the Borrowers' and Guarantors' businesses and consistent with their
past practices anywhere in the United States and Canada, and (c) Vehicles
located at new U-Haul Dealers added subsequent to the most recently provided
Dealer List. The Company

                                       54

<PAGE>

shall, or shall cause the other Borrowers and the Guarantors to, update the
Reservation Management System on a regular basis consistent with their past
practices.

         4.10 Compliance with Laws.

         The Company shall, and shall cause each of the other Borrowers and the
Subsidiaries of each Borrower to, comply with the requirements of all Applicable
Laws, rules, regulations, and orders of any Governmental Authority, including
the Fair Labor Standards Act and the Americans With Disabilities Act, other than
laws, rules, regulations, and orders the non-compliance with which, individually
or in the aggregate, could not reasonably be expected to result in a Material
Adverse Change.

         4.11 Leases.

         (a) The Company shall pay when due, or shall cause the other Borrowers
or the Guarantors to pay when due, all rents and other amounts payable under any
leases to which any Borrower or any Guarantor is a party or by which the
Borrowers' or Guarantor's properties and assets are bound, unless such payments
are the subject of a Permitted Protest.

         (b) Promptly exercise each one year renewal or extension option
available under each Synthetic Lease within the time period specified therein.

         4.12 Existence.

         Except as provided by Section 5.03, the Company shall, and shall cause
each of the other Borrowers and Guarantors to, at all times preserve and keep in
full force and effect each Borrower's and each Guarantor's valid existence and
good standing and any rights, licenses, permits and franchises material to the
Borrower's and Guarantors' businesses.

         4.13 Environmental.

         The Note Parties shall (a) keep any property either owned or operated
by any Note Party free of any Environmental Liens or post bonds or other
financial assurances sufficient to satisfy the obligations or liability
evidenced by such Environmental Liens, (b) comply, in all material respects,
with Environmental Laws and provide to the Trustee documentation of such
compliance which the Trustee reasonably requests, (c) promptly notify the
Trustee of any known release of a Hazardous Material of any reportable quantity
from or onto property owned or operated by any Note Party and take any Remedial
Actions required to abate said release or otherwise to come into compliance with
applicable Environmental Law, and (d) promptly, but in any event within 5 days
of its receipt thereof, provide the Trustee with written notice of the receipt
of any of the following: (i) notice that an Environmental Lien has been filed
against any of the real or personal property of any Note Party, (ii)
commencement of any Environmental Action or notice that an Environmental Action
will be filed against any Note Party, and (iii) notice of a violation, citation,
or other administrative order under any Environmental Law which reasonably could
be expected to result in a Material Adverse Change.

                                       55

<PAGE>

         4.14 Real Estate.

         If at any time after the Issue Date, the Company or any Guarantor
acquires any fee interest in Real Property with a fair market valuation in
excess of $250,000, the Company shall, or shall cause such Guarantor to,
promptly execute, deliver and record, a Mortgage (second only to the first
priority security interests granted to Bank Lenders' Agent pursuant to the New
Credit Agreement and the other Loan Documents (as defined in the New Credit
Agreement)) in favor of the Trustee covering such Real Property interest, in
form and substance reasonably satisfactory to the Trustee, and provide: (a) the
Trustee with a Mortgage Policy insuring the Lien (second in priority only to the
first priority security interests granted to Bank Lenders' Agent pursuant to the
New Credit Agreement and the other Loan Documents (as defined in the New Credit
Agreement)) of said Mortgage in such Real Property encumbered thereby, in an
amount reasonably acceptable to the Trustee and subject only to Permitted Liens
and to such other exceptions as are reasonably satisfactory to the Trustee, (b)
a satisfactory legal description of such property, (c) an opinion from special
counsel to such Person (in form and substance reasonably acceptable to Trustee)
stating that, in the opinion of such counsel, all action has been taken with
respect to the recording, registering, filing and perfection of the Mortgage
necessary to make effective the Lien (second in priority only to the first
priority security interests granted to Bank Lenders' Agent pursuant to the New
Credit Agreement and the other Loan Documents (as defined in the New Credit
Agreement)) intended to be created by the Mortgage, (d) to the extent necessary
under Applicable Laws, provide Uniform Commercial Code financing statements
covering fixtures, in each case appropriately completed and duly executed, for
filing in the appropriate county land office and (e) evidence that such Person
shall have paid to the applicable title insurance company all expenses of such
title insurance company in connection with the issuance of such reports and in
addition shall have paid to such title insurance company an amount equal to the
recording and stamp taxes (including mortgage recording taxes), if any, payable
in connection with recording such Mortgages in the appropriate county land
offices. In addition, such Person shall deliver to the Trustee copies of all
environmental reports and other documents delivered to Bank Lenders' Agent with
respect to such Real Property.

         4.15 Reorganization Plan.

         The Note Parties shall and shall cause each of their Subsidiaries to
comply in all material respects with the provisions of the Reorganization Plan
applicable to them.

         4.16 Vehicles.

         (a) The Company shall, or shall cause the other Borrowers and the
Subsidiaries of each Borrower to, (i) deposit all Certificates of Title into a
segregated, secured location at the Company's chief executive office located at
2727 North Central, Phoenix, Arizona, the access to which shall be limited to
the Bank Lenders' Agent, its representatives and agents, the Trustee, and its
representatives and agents, Roberta Holmes and Joan Gibson and such Certificates
of Title and such Persons shall be covered by a fidelity insurance policy naming
the Bank Lenders' Agent and the Trustee as loss payees or a bond endorsed to the
Bank Lenders' Agent and the Trustee, in either case in form and substance
reasonably satisfactory to the Bank Lenders' Agent (which shall include coverage
of at least $5,000,000), and (ii) timely pay all fees required by the

                                       56

<PAGE>

States of Alaska, Arizona and Hawaii, as applicable, with respect to such
Vehicle registrations and the issuances of the corresponding Certificates of
Title.

         (b) After the Issue Date, the Company shall, and shall cause the other
Borrowers, the Subsidiaries of each Borrower and the Guarantors to, (i) follow
the procedures set forth in Section 5.25(a), Section 5.25(b) and Section 5.25(c)
of the New Credit Agreement, as applicable, and Section 4.16(a) hereof with
respect to any Vehicle (excluding any trailer) acquired by any Borrower or a
Guarantor after the Issue Date that is not intended to be transferred into a
TRAC Lease Transaction within 130 days of the acquisition of such Vehicle, and
(ii) pursuant to the laws of the States of Alaska, Arizona and Hawaii, as
applicable, timely renew all registrations and Certificates of Title held by the
Borrowers with respect to the Vehicles.

         (c) The Note Parties hereby acknowledge and agree that (i) they shall
hold and maintain all Certificates of Title on behalf of, and as an
attorney-in-fact and agent for, the Bank Lenders' Agent and the Trustee, (ii)
the Bank Lenders' Agent's and the Trustee's security interest in, Liens on, and
all rights and remedies with respect to the Vehicles and the Certificates of
Title shall remain valid and enforceable at all times, and (iii) during the
existence of an Event of Default, and the Bank Lenders' Agent is not satisfied
with the results of any inspection under Section 4.6(b) of the New Credit
Agreement or if the Trustee is not satisfied with the results of any inspection
under Section 11.17(b), the Company shall, or shall cause the other Borrowers
and the Guarantors to, promptly comply with any request or direction by Bank
Lenders' Agent or the Trustee to deliver the Certificates of Title to Bank
Lenders' Agent or such other Person or location as Bank Lenders' Agent or the
Trustee may direct in its Permitted Discretion. In the event such directions of
Bank Lenders' Agent and the Trustee conflict, then the failure of the Note
Parties to comply with the directions of the Trustee shall not constitute a
Default or an Event of Default hereunder provided that such Note Parties comply
with the directions of Bank Lenders' Agent.

         Execution of this Agreement shall be evidence of the Company's and each
Guarantor's consent for the Lien of the Bank Lenders' Agent and the Trustee on
the Vehicles indicated on the Certificates of Title.

         4.17 Cash Management and Asset Preservation Agreements.

         The Company shall, and shall cause the other Borrowers and the
Guarantors, to comply with Section 2.7 of the New Credit Agreement and any other
asset preservation and management covenants thereof and any Cash Management
Agreements (as defined in the New Credit Agreement) entered into pursuant to
such provisions, and if the New Credit Agreement is ever terminated,
extinguished or otherwise not in force, then Section 2.7 and all other asset
preservation and management covenants thereof shall be incorporated herein with
the term "Agent" replaced with the term "Trustee" mutatis mutandis; provided
that the incorporation of such Section 2.7 and any other asset preservation and
management covenants thereof in this Agreement shall not adversely affect the
rights, duties, liabilities or immunities of the Trustee or require the Trustee
to exercise greater discretionary judgment hereunder without the Trustee's prior
written consent. Notwithstanding any other provision to the contrary, the New
AMERCO Note Accounts shall not be deemed to be Cash Management Accounts (as
defined in the New

                                       57

<PAGE>

Credit Agreement). In no event shall any Note Party deposit the proceeds of any
Collateral into any New AMERCO Note Account.

         4.18 Credit Card Agreements.

         The Company shall, and shall cause the other Borrowers and Guarantors,
to comply with the Credit Card Agreements (as defined in the New Credit
Agreement), and if the New Credit Agreement is ever terminated, extinguished or
otherwise not in force, then the Company shall, and shall cause the other
Borrowers and Guarantors, to use their best efforts to effect new credit card
agreements between the Trustee and the credit card processors of Borrowers and
Guarantors in substantially similar form and substance as the Credit Card
Agreements required under the New Credit Agreement.

         4.19 Disclosure Updates.

         Promptly and in no event later than 5 Business Days after obtaining
knowledge thereof, notify the Trustee if any written information, exhibit, or
report furnished to the Trustee or any Holder hereunder contained any untrue
statement of a material fact or omitted to state any material fact necessary to
make the statements contained therein not misleading in light of the
circumstances in which made. The foregoing notwithstanding, any notification
pursuant to the foregoing provision will not cure or remedy the effect of the
prior untrue statement of a material fact or omission of any fact nor shall any
such notification have the effect of amending or modifying this Agreement.

         4.20 Material Contracts; Affiliate Contracts.

         In the event any Borrower or Guarantor shall enter into any Material
Contract or, subject to Section 5.14, any new Affiliate Contract, after the
Issue Date, deliver to the Trustee, within 30 days of entering into such
Material Contract or Affiliate Contract, an updated Schedule M-1 or Schedule A-1
to the New Credit Agreement, as applicable, reflecting the addition of such
Material Contract or Affiliate Contract, together with a copy of such executed
Material Contract or Affiliate Contract. Each Borrower and Guarantor shall also
provide the Trustee with an executed copy of any contract with any of SAC
Holding, SSI, PMSR or PM Preferred executed after the Issue Date.

         4.21 Employee Benefits.

         (a) (i) Promptly, and in any event within 10 Business Days after any
Borrower or any Subsidiary of a Borrower knows or should know that an ERISA
Event (as defined in the New Credit Agreement) has occurred that reasonably
could be expected to result in a Material Adverse Change, deliver to the Trustee
a written statement of the chief financial officer of the Company describing
such ERISA Event (as defined in the New Credit Agreement) and any action that is
being taking with respect thereto by any such Borrower, any such Subsidiary or
ERISA Affiliate, and any action taken or threatened by the IRS, Department of
Labor, or PBGC, and such Borrower or such Subsidiary, as applicable, shall be
deemed to know all facts known by the administrator of any Benefit Plan of which
it is the plan sponsor, (ii) promptly, and in any event within 3 Business Days
after the filing thereof with the IRS, deliver to the Trustee a copy of each
funding waiver request filed with respect to any Benefit Plan and all
communications

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received by any Borrower, any Subsidiary of a Borrower or, to the knowledge of
such Borrower, any ERISA Affiliate with respect to such request, and (iii)
promptly, and in any event within 3 Business Days after receipt by any Borrower,
deliver to the Trustee any Subsidiary of a Borrower or, to the knowledge of any
Borrower, any Subsidiary, any ERISA Affiliate, of the PBGC's intention to
terminate a Benefit Plan or to have a trustee appointed to administer a Benefit
Plan, copies of each such notice.

         (b) Cause to be delivered to the Trustee, upon the Trustee's request,
each of the following: (i) a copy of each Benefit Plan (or, where any such plan
is not in writing, complete description thereof) (and if applicable, related
trust agreements or other funding instruments) and all amendments thereto, all
written interpretations thereof and written descriptions thereof that have been
distributed to employees or former employees of any Borrower or its
Subsidiaries; (ii) the most recent determination letter issued by the IRS with
respect to each Benefit Plan; (iii) for the 3 most recent plan years, annual
reports on Form 5500 Series required to be filed with any governmental agency
for each Benefit Plan; (iv) all actuarial reports prepared for the last 3 plan
years for each Benefit Plan; (v) a listing of all Multiemployer Plans, with the
aggregate amount of the most recent annual contributions required to be made by
any Borrower, any Subsidiary of a Borrower, or any ERISA Affiliate to each such
plan and copies of the collective bargaining agreements requiring such
contributions; (vi) any information that has been provided to any Borrower, any
Subsidiary of a Borrower or any ERISA Affiliate regarding withdrawal liability
under any Multiemployer Plan; and (vii) the aggregate amount of the most recent
annual payments made to former employees of any Borrower or its Subsidiaries
under any Retiree Health Plan (as defined in the New Credit Agreement).

                                   ARTICLE V

                               NEGATIVE COVENANTS

         Each Note Party covenants and agrees that, until payment in full and
satisfaction or discharge of all Obligations hereunder, it will not, and will
not permit any of its Subsidiaries (except the Insurance Subsidiaries) to, do
any of the following:

         5.01 Indebtedness, Etc.

         Create, incur, assume, suffer to exist, guarantee, or otherwise become
or remain, directly or indirectly, liable with respect to any Indebtedness,
except:

         (a) Indebtedness evidenced by this Agreement, the Notes, the Note
Guarantees and the Guaranty Agreement;

         (b) Indebtedness of the Company and any other Note Party incurred under
the New Credit Agreement and all other obligations in respect thereof in an
aggregate amount at any time outstanding not to exceed $575,000,000, less
mandatory permanent prepayments and permanent reductions plus: (i) advances made
pursuant to the New Credit Agreement to pay expenses of the lenders thereunder
(including expenses accruing after the commencement of any Insolvency or
Liquidation Proceeding (as defined in the New Credit Agreement), whether or not
a claim for post-filing or post-petition expenses is allowed in such
proceeding), (ii) advances made to protect

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or preserve the "Collateral" under the New Credit Agreement and the other Loan
Documents (as defined in the New Credit Agreement), (iii) advances made to pay
interest (including interest accruing under Section 2.6(c) of the New Credit
Agreement (or a comparable section, as applicable) and interest accruing after
the commencement of any Insolvency or Liquidation Proceeding (as defined in the
New Credit Agreement), whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) and (iv) advances made pursuant to the
New Credit Agreement to pay fees under the New Credit Agreement (including fees
accruing after the commencement of any Insolvency or Liquidation Proceeding (as
defined in the New Credit Agreement), whether or not a claim for post-filing or
post-petition fees are allowed in such proceeding);

         (c) Indebtedness in existence as of the Issue Date and obligations to
make payments required under the Reorganization Plan;

         (d) (i) Purchase Money Indebtedness and Capitalized Lease Obligations
(other than Capital Leases of the type set forth in clause (ii) of this Section
5.01(d)) incurred after the Issue Date in an aggregate amount not to exceed
$30,000,000; and (ii) Capital Leases, to the extent such Capital Leases arise
out of the treatment of any of the Synthetic Leases (including any refinancings,
in whole or in part, thereof) as Capital Leases in accordance with the
requirements of GAAP;

         (e) Indebtedness under the New AMERCO Notes to the extent outstanding
on the Issue Date;

         (f) guarantees permitted under Section 5.06;

         (g) Indebtedness comprising Permitted Investments;

         (h) Indebtedness with respect to letters of credit issued by a party
other than the Issuing Lender (as defined in the New Credit Agreement) and
secured by cash collateral in an aggregate amount not to exceed $3,000,000 at
any time; and

         (i) refinancings, renewals, or extensions of Indebtedness permitted
under clauses (c) and (d) of this Section 5.01 (and continuance or renewal of
any Permitted Liens associated therewith) (specifically excluding the New AMERCO
Notes), so long as: (i) the terms and conditions of such refinancings, renewals,
or extensions do not materially impair the prospects of repayment of the
Obligations by the Borrowers or materially impair the Borrower's
creditworthiness, (ii) such refinancings, renewals, or extensions do not result
in an increase in the principal amount (other than capitalized fees and, with
respect to any refinancing of the Synthetic Leases, to the extent they are
treated as Capital Leases in accordance with GAAP, any increases directly
attributable to improvements on or to the Real Property covered by such
Synthetic Leases) of, or interest rate beyond a prevailing market rate with
respect to, the Indebtedness so refinanced, renewed, or extended, (iii) such
refinancings, renewals, or extensions do not result in a shortening of the
average weighted maturity of the Indebtedness so refinanced, renewed, or
extended, (other than such changes in the average weighted maturity of the
Synthetic Leases, to the extent they are treated as Capital Leases in accordance
with GAAP, resulting from the refinancing, in whole or in part, of the Synthetic
Leases pursuant to the WP

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<PAGE>

Carey Transaction or other refinancing transaction in form and substance
reasonably satisfactory to the Trustee or as permitted by the Bank Lenders'
Agent and amended in accordance with Section 9.07(c)(i) hereof), nor are they on
terms or conditions, that, taken as a whole, are materially more burdensome or
restrictive to the applicable Borrower, and (iv) if the Indebtedness that is
refinanced, renewed, or extended was subordinated in right of payment to the
Obligations, then the terms and conditions of the refinancing, renewal, or
extension Indebtedness must include subordination terms and conditions that are
at least as favorable to the Holders of the Notes as those that were applicable
to the refinanced, renewed, or extended Indebtedness.

         5.02 Liens.

         Create, incur, assume, or permit to exist, directly or indirectly, any
Lien on or with respect to any of its assets, of any kind, whether now owned or
hereafter acquired, or any income or profits therefrom, except for Permitted
Liens.

         5.03 Restrictions on Fundamental Changes.

         (a) Enter into any merger, consolidation, reorganization, or
recapitalization, or reclassify its Stock (other than in connection with the
Reorganization Plan), except that, so long as no Default or Event of Default
then exists hereunder or would be caused thereby and the Trustee receives
written notice of any such merger at least 30 days prior to the effectiveness
thereof (provided that the Trustee shall have no duty to act upon receipt of
such notice except as expressly provided in clause (y) below) if such merger
involves a Note Party: (i) any Subsidiary that is not a Note Party may merge
into any other Subsidiary that is not a Note Party, and (ii) any Note Party
(other than the Company, U-Haul or AREC) may merge into any other Note Party
(other than the Company, U-Haul or AREC); provided, however, (x) the Person
surviving such merger shall be a Note Party, and (y) the Trustee shall have
received, upon the effectiveness of such merger, such Note Documents, title
insurance and opinions of counsel as the Trustee may reasonably request to
continue or insure the priority and perfection of the Trustee's Liens on the
Collateral or the obligations of any such Note Party under any of the Note
Documents, including, without limitation, the documents required by Section
5.13(b) hereof. Notwithstanding the foregoing, a Subsidiary that is not an
Insurance Subsidiary shall not merge with any Insurance Subsidiary.

         (b) Liquidate, wind up, or dissolve any Borrower or any Borrower's
Subsidiaries (or suffer any liquidation or dissolution), except that the Company
may liquidate, dissolve or wind up any Subsidiary (other than AREC and U-Haul or
any Insurance Subsidiary) so long as (i) no Default or Event of Default then
exists hereunder or would be caused thereby and the Trustee receives written
notice of any such action at least 30 days prior to the effectiveness thereof
(provided that the Trustee shall have no duty to act upon receipt of such notice
except as expressly provided in clause (iii) below), (ii) the assets of such
Subsidiary are transferred to another Subsidiary of the Company or, if such
Subsidiary is a Note Party, to another Note Party and such assets remain subject
to a perfected Lien (second in priority only to the first priority security
interests granted to Bank Lenders' Agent pursuant to the New Credit Agreement
and the other Loan Documents (as defined in the New Credit Agreement) and
subject to Permitted Liens) under a Note Document after such transfer, and (iii)
the Trustee shall have received such Note

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Documents, title insurance and opinions of counsel as the Trustee may request to
continue or insure the priority and perfection of the Trustee's Liens on such
assets or the obligations of any such Subsidiary under any of the Note
Documents, including, without limitation, the documents required by Section
5.13(b) hereof. Notwithstanding the foregoing, a dissolving or liquidating
Subsidiary that is not an Insurance Subsidiary shall not transfer assets to any
Insurance Subsidiary.

         5.04 Disposal of Assets.

         Other than Permitted Dispositions, convey, sell, lease, license,
assign, transfer, or otherwise dispose of, in one transaction or a series of
transactions, any of the assets of any Borrower or any Guarantor. To the extent
a sale or other disposition is permitted by clause (k) of the definition of
Permitted Dispositions and if an Authorized Officer of Company certifies in
writing to the Trustee that (a) the sale is permitted under this Section 5.04,
(b) the Vehicles identified (by vehicle identification number, make and model)
in such certification are to be sold in connection with a TRAC Lease Transaction
and (c) such Vehicles are to be sold on a date (each such date, a "Sale Date")
no later than 130 days from the date of such certification, Trustee's Lien on
such Vehicles shall be deemed to be released 1 Business Day prior to such sale;
provided, however, that in the event one or more of such Vehicles are not sold
in connection with a TRAC Lease Transaction within 5 Business Days of the Sale
Date indicated in such certification, the Vehicles that are not so sold shall
become subject to a Lien (second in priority only to the first priority security
interests granted to the Bank Lenders' Agent pursuant to the New Credit
Agreement and the other Loan Documents (as defined in the New Credit Agreement))
in favor of the Trustee on the fifth Business Day following such Sale Date and
the Company shall, or shall cause the other Borrowers or Guarantors, as
applicable, to comply immediately with the requirements of this Agreement with
respect to such Vehicles, including, without limitation, Section 4.16(a) hereof.
The Note Parties shall not, without the prior written consent of the Holders as
required by Article IX hereof, (x) transfer, sell or otherwise dispose of any of
the Vehicles or the Certificates of Title except in conjunction with a Permitted
Disposition hereunder, or (y) relocate the Certificates of Title.

         5.05 Change Name.

         Change the Company's or any Guarantor's name, FEIN, Organizational ID
Number, corporate structure, or identity, or add any new fictitious name, or
reincorporate or reorganize itself under the laws of any other jurisdiction
other than the jurisdiction of incorporation of such Person; provided, however,
that any Borrower or any Guarantor may change its name upon at least 30 days'
prior written notice by the Company to the Trustee of such change and so long
as, at the time of such written notification, the Company and/or such Guarantor
provides or authorizes the filing of any Uniform Commercial Code financing
statements or fixture filings necessary to perfect and continue perfected the
Trustee's Liens.

         5.06 Guarantee.

         Guarantee or otherwise become in any way liable with respect to the
obligations of any third Person (including the Insurance Subsidiaries) except by
endorsement of instruments or items of payment for deposit to the account of
Company or Guarantors or which are transmitted

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or turned over to the Trustee, except for (a) guarantee obligations of the
Company existing as of Issue Date, (b) guarantee obligations of the Company in
connection with the Reorganization Plan, (c) guarantee obligations of the
Company with respect to the Support Party Agreements, (d) guarantee obligations
with respect to TRAC Lease Transactions in the ordinary course of business, to
the extent the obligations thereunder are permitted by Section 5.01 hereof and
are consistent with past practices, (e) guarantee obligations of a Note Party
pursuant to any refinancing, renewal or extension of Indebtedness permitted
pursuant to Section 5.01(i) hereof, and (f) guarantee obligations of a Note
Party with respect to the obligations of any other Note Party incurred in the
ordinary course of business, to the extent such guaranteed obligation is
permitted to be incurred by such guaranteed Note Party hereunder and is
consistent with past practices.

         5.07 Nature of Business.

           Make any change in the principal nature of any Note Party's business.

         5.08 Prepayments and Amendments.

         (a) Prepay, redeem, defease, purchase, or otherwise acquire any
Indebtedness of any Note Party, other than (i) the DIP Obligations; (ii) as
required by the Confirmation Order; (iii) Obligations (as defined in the New
Credit Agreement) under the New Credit Agreement in accordance with the terms
thereof; (iv) Obligations in accordance with this Agreement; (v) in connection
with a refinancing permitted by Section 5.01(i); (vi) (1) prepayments of the
Indebtedness under the New AMERCO Notes, from the proceeds from the monetization
or sale of the Excluded Assets, or (2) so long as no Event of Default exists,
other prepayments of Indebtedness, under the New AMERCO Notes so long as (A) the
aggregate amount of such prepayments in any fiscal year, together with the
aggregate amount of prepayments in such fiscal year by Borrowers pursuant to
clause (3) of Section 5.08(a)(vii) plus the aggregate amount of dividends paid
in arrears in such fiscal year by the Borrowers pursuant to clause (c) of
Section 5.11, shall not, in the aggregate, exceed the ECF Carry Forward Amount,
if any, then in existence, and (B) on the date of such prepayment Borrowers are
in compliance with the Excess Availability Test; (vii) (1) prepayments of the
Indebtedness under the Synthetic Leases with insurance proceeds or condemnation
proceeds received by a Note Party in connection with any loss or condemnation of
the Synthetic Lease Collateral, (2) prepayments of the Indebtedness under the
Synthetic Leases upon the sale of any parcel of the Real Property subject to the
Synthetic Leases pursuant to an arms-length sale to a bona fide purchaser that
is not an Affiliate of the Company (whether or not an Affiliate leases back or
retains the right to manage, occupy or conduct business at the affected
Synthetic Lease Property), up to the amount of the net sale proceeds, or (3) so
long as no Event of Default exists, any other prepayments of principal
Indebtedness required pursuant to the provisions of the Synthetic Leases, so
long as (I) the aggregate amount of such prepayments in any fiscal year,
together with the aggregate amount of prepayments in such fiscal year by
Borrowers pursuant to clause (2) of Section 5.08(a)(vi) plus the aggregate
amount of dividends paid in arrears in such fiscal year by Borrowers pursuant to
clause (c) of Section 5.11, shall not, in the aggregate, exceed the ECF Carry
Forward Amount, if any, then in existence, and (II) on the date of such
prepayment Borrowers are in compliance with the Excess Availability Test, (viii)
in addition to the principal payments under the Synthetic Leases to be made on
the Effective Date as contemplated by the Reorganization Plan, the actual

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scheduled payments of principal and interest due under the Synthetic Leases,
estimates of which are set forth on Schedule 7.8(a) of the New Credit Agreement
(including any refinancings, in whole or in part, thereof); or (ix) other
Indebtedness with the consent of the Required Holders.

         (b) Except in connection with a refinancing permitted by Section
5.01(i), directly or indirectly, amend, modify, alter, increase, or change any
of the terms or conditions of any agreement, instrument, document, indenture, or
other writing evidencing or concerning Indebtedness permitted under Section 5.01
(excluding any amendment to this Agreement that must be made pursuant to Section
9.07 thereof).

         (c) Amend, modify or otherwise change its Governing Documents,
including, without limitation, by the filing or modification of any certificate
of designation, or any agreement or arrangement entered into by it with respect
to any of its capital Stock (including any shareholders' agreement), or enter
into any new agreement with respect to any of its capital Stock, except as
appropriate to accomplish a transaction permitted pursuant to Section 5.03(a) or
Section 5.03(b), or (ii) amend, modify or otherwise change any Material Contract
(other than a Material Contract, the amendment of which is governed by clause
(b) above) except any such amendments, modifications or changes or any such new
agreements or arrangements pursuant to this paragraph (c) that, either
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Change, or (iii) amend, modify or otherwise change any
Affiliate Contract or any contract with SAC Holding, SSI, PMSR or PM Preferred
except in compliance with Section 5.14 hereof.

         5.09 Change of Control.

         Cause, permit, or suffer, directly or indirectly, any Change of
Control, other than in connection with the consummation of the Reorganization
Plan on the Effective Date.

         5.10 Ownership of Certain Assets.

         Cause, permit, or suffer any Subsidiary, other than Borrowers and
U-Haul (Canada), to own any parcel of Real Property Collateral or any Vehicle
included in the Collateral unless (a) Company provides the Trustee with 10 days'
prior written notice of such intended ownership, (b) such Subsidiary becomes a
Guarantor under this Agreement and delivers to the Trustee any additional
documents requested by the Trustee in their Permitted Discretion, and (c) the
Company takes or causes to be taken all such action necessary to perfect the
Trustee's Lien on such Collateral (second in priority only to the first priority
security interests granted to the Bank Lenders' Agent pursuant to the New Credit
Agreement and the other Loan Documents (as defined in the New Credit Agreement))
and the Company delivers to the Trustee an opinion of counsel stating that all
action has been taken to perfect such Lien.

         5.11 Distributions.

         Make any distribution or declare or pay any dividends (in cash or other
property, other than common Stock) on, or purchase, acquire, redeem, or retire
any of any Note Party's Stock, of any class, whether now or hereafter
outstanding, except, so long as no Event of Default has occurred and is
continuing hereunder or would result therefrom, distributions or declarations
and payments of dividends: (a) by a Note Party to another Note Party, (b) on the
preferred stock of

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the Company, based on the accrual of dividends subsequent to the Issue Date
(including, without limitation, the payment of dividends in an aggregate amount
not to exceed $3,335,000 paid on account of dividends on the preferred stock of
the Company accrued for the period ended February 29, 2004), in an aggregate
amount not to exceed $13,000,000 in any fiscal year, so long as at the time of
payment of any such dividend, Borrowers are in compliance with the Excess
Availability Test, and (c) on the preferred stock of the Company based on the
accrual of dividends prior to the Issue Date (including, without limitation, the
payment of dividends in an aggregate amount not to exceed $3,335,000 paid on
account of dividends on the preferred stock of the Company accrued prior to or
for the period ended November 30, 2003), so long as (i) the aggregate amount of
such dividends in arrears shall not exceed the lesser of (x) $19,600,000 paid in
the aggregate on or after the Issue Date or (y) together with the aggregate
amount of any prepayments paid by Borrowers in such fiscal year pursuant to
clause (2) of Section 5.08(a)(vi) plus the aggregate amount of any prepayments
paid by Borrowers in such fiscal year pursuant to clause (3) of Section
5.08(a)(vii), the ECF Carry Forward Amount, if any, then in existence, and (ii)
at the time of payment of any such dividend in arrears, Borrowers are in
compliance with the Excess Availability Test.

         5.12 Accounting Methods.

         Modify or change their fiscal year from a year ending March 31 or their
method of accounting (other than as may be required to conform to GAAP) or enter
into, modify, or terminate any agreement currently existing, or at any time
hereafter entered into with any third party accounting firm or service bureau
for the preparation or storage of the Note Parties' accounting records without
said accounting firm or service bureau agreeing to provide Trustee information
regarding the Collateral or Borrowers' and their Subsidiaries' financial
condition.

         5.13 Formation of Subsidiaries; Investments.

         (a) Except for Permitted Investments, directly or indirectly, make or
acquire any Investment, or incur any liabilities (including contingent
obligations) for or in connection with any Investment; provided, however, that
the Company and its Subsidiaries shall not (i) have Permitted Investments (other
than in the Cash Management Accounts (as defined in the New Credit Agreement))
in Deposit Accounts or Securities Accounts in excess of $3,000,000 in the
aggregate outstanding at any one time (excluding (x) Deposit Accounts or
Securities Accounts containing only the cash proceeds received from the WP Carey
Transaction (to the extent such proceeds will be fully utilized in such
transaction), and any proceeds from the monetization of Excluded Assets, and (y)
any Deposit Accounts maintained by U-Haul solely in its capacity as manager of
properties owned by SAC Holding or SSI under a Management Agreement provided
U-Haul has no rights to or interest in the funds deposited therein) unless the
Company or any of its Subsidiaries, as applicable, and the applicable securities
intermediary or bank have entered into Control Agreements or similar
arrangements governing such Permitted Investments as to perfect (and further
establish) the Trustee's secondary Liens in such Permitted Investments, or (ii)
forgive or waive the repayment or retirement or amend the terms of any
Investment in existence on or after the Issue Date in SAC Holding or any such
Person made by the Company or any Subsidiary that is required to be repaid or
retired by the terms of such Investment as in effect on or after the Issue Date
(other than in accordance with the terms thereof as in effect on the date the
Investment is made).

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         (b) Form any new Subsidiary or acquire any direct or indirect
Subsidiary after the Issue Date, unless (i) such Subsidiary is a wholly-owned
Subsidiary of a Note Party, and such Note Party shall (x) cause such new
Subsidiary to enter into a supplemental indenture in the form of Exhibit D
attached hereto and provide to the Trustee a Note Guarantee and a joinder to the
Guaranty Agreement, the Guarantor Security Agreement, the Copyright Security
Agreement, and the Patent and Trademark Security Agreement, together with such
other security documents (including Mortgages and Mortgage Policies with respect
to any Real Property of such new Subsidiary), as well as appropriate Uniform
Commercial Code financing statements (and with respect to all property subject
to a Mortgage, fixture filings) all in form and substance satisfactory to the
Trustee (including being sufficient to grant the Trustee a Lien (second in
priority only to the first priority security interests granted to Bank Lenders'
Agent pursuant to the New Credit Agreement and the other Loan Documents (as
defined in the New Credit Agreement) and subject to Permitted Liens) in and to
the assets of such newly formed or acquired Subsidiary), and (y) provide to the
Trustee a pledge agreement and appropriate certificates and powers or Uniform
Commercial Code financing statements, hypothecating all of the direct or
beneficial ownership interest in such new Subsidiary, in form and substance
substantially similar to the Stock Pledge Agreement and other corresponding
Security Documents, and (z) provide to the Trustee one or more opinions of
counsel satisfactory to the Trustee, with respect to the execution and delivery
of the applicable documentation referred to above and opining that all action
has been taken to perfect the Trustee's Lien in and to the assets of such
Subsidiary and all direct or beneficial ownership interests in such new
Subsidiary, and (ii) the Trustee receives 30 days' prior written notice of such
formation or acquisition. Any document, agreement, or instrument executed or
issued subject to this Section 5.13(b) shall be a Note Document.

         5.14 Transactions with Affiliates.

         Except (a) as otherwise set forth in the Reorganization Plan, (b) for
the Company's reimbursement to, or payment on behalf of, SAC Holding, of (i)
reasonable attorneys' fees incurred by SAC Holding in connection with the
preparation, negotiation and implementation of the SAC Participation and
Subordination Agreement, not to exceed an aggregate amount of $500,000, (ii) any
and all reasonable direct out of pocket expenses (including reasonable
attorneys' fees and accountants' fees and trustee's fees, but excluding the
payment of principal, premium, if any, and interest in respect of the SAC
Holding Senior Bond and any other amount payable by SAC Holding pursuant to the
terms of the SAC Note Indenture) incurred by SAC Holding in connection with its
reporting or other compliance obligations under the SAC Notes Indenture in an
aggregate amount not to exceed $1,000,000 in any 12-month period, and (iii) the
Company's obligations under the Agreement to Indemnify, or (c) as consented to
by Trustee and the Required Holders, directly or indirectly enter into or permit
to exist any transaction with any Affiliate of any Borrower, SAC Holding, SSI,
PMSR or PM Preferred except for transactions that are in the ordinary course of
the Borrowers' business, upon fair and reasonable terms that are no less
favorable to the Borrowers than would be obtained in an arm's length transaction
with a non-Affiliate. Borrowers shall not, and shall not permit any of their
Subsidiaries to, transfer any cash or assets to the Insurance Subsidiaries, the
Dormant Subsidiaries or INW under any circumstances whatsoever or guarantee or
otherwise incur any Indebtedness on behalf of such Insurance Subsidiaries,
Dormant Subsidiaries or INW.

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         5.15 Suspension.

         Except as permitted by Section 5.03, suspend or go out of a substantial
portion of its business.

         5.16 Use of Proceeds.

         Use the proceeds from the sale of the Notes for any purpose other than
(a) on the Issue Date, to pay transactional fees, costs, and expenses incurred
in connection with this Agreement, the other Note Documents, and the
transactions contemplated hereby and thereby, (b) to fund the Reorganization
Plan and (c) thereafter, for working capital and other general corporate
purposes of the Borrowers, in each case consistent with the terms and conditions
hereof, for its lawful and permitted purposes.

         5.17 Change in Location of Chief Executive Office; Equipment with
Bailees.

         Relocate its chief executive office to a new location without the
Company providing 30 days' prior written notification thereof to the Trustee and
so long as, at the time of such written notification, the applicable Note Party
provides or authorizes, the filing of any Uniform Commercial Code financing
statements or fixture filings necessary to perfect and continue perfected the
Trustee's Liens and also provide to the Trustee a Collateral Access Agreement,
in a form substantially similar to those Collateral Access Agreements delivered
in accordance with Section 11.01(a)(ii)(1), with respect to such new location.
The Equipment of the Note Parties shall not at any time now or hereafter be
stored with a bailee, warehouseman, or similar party (other than a U-Haul
Dealer) without Bank Lenders' Agent's prior written consent and prior written
notification to the Trustee.

         5.18 Securities Accounts.

         Establish or maintain any Securities Account unless the Trustee shall
have received a Control Agreement in respect of such Securities Account. No Note
Party shall transfer assets out of any Securities Account; provided, however,
that, so long as no Event of Default has occurred and is continuing or would
result therefrom, such Note Party may use such assets (and the proceeds thereof)
to the extent not prohibited by this Agreement.

         5.19 Financial Covenants.

         (a) EBITDA/Capital Expenditures. Allow Consolidated EBITDA minus
Capital Expenditures, each as measured on a fiscal quarter-end basis for the
applicable period set forth below, to be less than the required amount set forth
in the following table as of the applicable date set forth opposite thereto:

<TABLE>
<CAPTION>
Applicable Amount       Applicable Date
-----------------    ----------------------
<S>                  <C>
   $15,000,000       For the 3-month period

                      ending June 30, 2004
</TABLE>

                                       67
<PAGE>

<TABLE>
<CAPTION>
Applicable Amount         Applicable Date
-----------------    -------------------------
<S>                  <C>
   $ 65,000,000        For the 6-month period

                     ending September 30, 2004

   $ 65,000,000        For the 9-month period

                      ending December 31, 2004

   $ 60,000,000       For the 12-month period

                       ending March 31, 2005

   $ 48,000,000       For the 12-month period

                        ending June 30, 2005

   $ 25,000,000       For the 12-month period

                     ending September 30, 2005

   $ 25,000,000       For the 12-month period

                      ending December 31, 2005

   $ 30,000,000       For the 12-month period

                       ending March 31, 2006

   $ 80,000,000       For the 12-month period

                        ending June 30, 2006

   $115,000,000       For the 12-month period

                     ending September 30, 2006

   $110,000,000       For the 12-month period

                      ending December 31, 2006

   $105,000,000       For the 12-month period

                       ending March 31, 2007
</TABLE>

; provided, however, that based upon Borrowers' Projections (as defined in the
New Credit Agreement) delivered to the Trustee pursuant to Section 4.04(c), the
Required Lenders shall establish quarterly EBITDA minus Capital Expenditure
covenants for each fiscal quarter after March 2007, using the same methodology
as utilized for 2004, 2005 and 2006, and the covenants

                                       68

<PAGE>

shall be presented to the Company for its approval, which approval shall not be
unreasonably withheld. In the event the Company does not approve the proposed
covenants, Required Lenders shall establish such covenants, in their Permitted
Discretion, based upon Borrowers' Projections (as defined in the New Credit
Agreement) for the applicable fiscal year.

         (b) Capital Expenditures. Make Capital Expenditures in any fiscal year
in excess of the amount set forth in the following table for the applicable
period:

<TABLE>
<CAPTION>
Fiscal Year 2005    Fiscal Year 2006    Fiscal Year 2007
----------------    ----------------    ----------------
<S>                 <C>                 <C>
$    185,000,000    $     245,000,00    $    195,000,000
</TABLE>

; provided, however, that based upon Borrowers' Projections (as defined in the
New Credit Agreement) delivered to the Trustee pursuant to Section 4.04(c), the
Required Lenders shall establish quarterly Capital Expenditure covenants for
each fiscal year after 2007, using the same methodology as utilized for 2005,
2006 and 2007, and the covenants shall be presented to the Company for its
approval, which approval shall not be unreasonably withheld. In the event the
Company does not approve the proposed covenants, Required Lenders shall
establish such covenants, in their Permitted Discretion, based upon Borrowers'
Projections (as defined in the New Credit Agreement) for the applicable fiscal
year.

         5.20 Employee Benefits.

         Directly or indirectly:

         (a) engage in any prohibited transaction which is reasonably likely to
result in a civil penalty or excise tax described in Sections 502(i) of ERISA or
4975 of the IRC for which a statutory or class exemption is not available or a
private exemption has not been previously obtained from the Department of Labor;

         (b) with respect to any Benefit Plan, permit to exist an accumulated
funding deficiency (as defined in Sections 302 of ERISA and 412 of the IRC) for
a period longer than 30 days, whether or not waived;

         (c) fail to pay timely required contributions or annual installments
due with respect to any waived funding deficiency to any Benefit Plan;

         (d) terminate any Benefit Plan where such event would result in any
liability of any Borrower, any Subsidiary of any Borrower or any ERISA Affiliate
under Title IV of ERISA;

         (e) fail to make any required contribution or payment to any
Multiemployer Plan;

         (f) fail to pay any required installment or any other payment required
under Section 412 of the IRC on or before the due date for such installment or
other payment;

         (g) amend a Benefit Plan resulting in an increase in current liability
for the plan year such that any Borrower, any Subsidiary of any Borrower or any
ERISA Affiliate is required to provide security to such Plan under Section
401(a)(29) of the IRC; or

                                       69

<PAGE>

         (h) withdraw from any Multiemployer Plan where such withdrawal is
reasonably likely to result in any liability of any such entity under Title IV
of ERISA;

that, individually or in the aggregate, results in or reasonably would be
expected to result in a claim against or liability of any Borrower, any
Subsidiary of any Borrower or any ERISA Affiliate in excess of $25,000.

         5.21 Sales and Leasebacks.

         Except for Permitted Dispositions, enter into any arrangement, directly
or indirectly, with any third party whereby any Note Party shall sell or
transfer any property, real or personal, whether now owned or hereafter
acquired, and whereby such Note Party shall then or thereafter rent or lease as
lessee of such property or any part thereof or other property that such Note
Party intends to use for substantially the same purpose or purposes as the
property sold or transferred.

         5.22 Anti-Terrorism Laws.

         (a) Conduct any business or engage in any transaction or dealing with
any Blocked Person, including the making or receiving any contribution of funds,
goods or services to or for the benefit of any Blocked Person; (b) deal in, or
otherwise engage in any transaction relating to, any property or interests in
property blocked pursuant to Executive Order No. 13224; (c) engage in or
conspire to engage in any transaction that evades or avoids, or has the purpose
of evading or avoiding, or attempts to violate, (i) any of the prohibitions set
forth in Executive Order No. 13224 or the USA Patriot Act, or (ii) any
prohibitions set forth in the rules or regulations issued by OFAC or any
sanctions against targeted foreign countries, terrorism sponsoring
organizations, and international narcotics traffickers based on U.S. foreign
policy.

         5.23 Speculative Transactions.

         Engage in any transaction involving commodity options or futures
contracts or any similar speculative transactions except for Hedge Agreements
that are used solely as part of normal business operations as a risk management
strategy and/or hedge against charges resulting from market operations in
accordance with the Company's customary policies and not as a means to speculate
for investment purposes or trends and shifts in financial or commodities
markets.

         5.24 Amendment to Certain Agreements.

         Neither the Company nor any Subsidiary shall (a) enter into or consent
to any amendment, supplement or other modification of this Agreement or the
Security Documents except as permitted under Article IX hereof, and (b) amend,
restate, supplement, modify, waive or otherwise change or consent or agree to
any amendment, modification, waiver or other change to, any of the terms of the
New Credit Agreement in any manner prohibited by the Intercreditor Agreement.

                                       70

<PAGE>

         5.25 Waiver of Stay, Extension or Usury Laws.

         The Company and each Guarantor 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, and will resist any and all efforts to be compelled to
take the benefit or advantage of, any stay or extension law or any usury law or
other law that would prohibit or forgive the Company from paying all or any
portion of the principal of, or interest on the Notes as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Agreement and the Security Documents; and
(to the extent that it may lawfully do so) the Company and each Subsidiary
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 granted to
the Trustee herein and in the Security Documents, but will suffer and permit the
execution of every such power as though no such law had been enacted.

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

         6.01 Events of Default.

         Each of the following shall constitute an "Event of Default" under this
Agreement, the Security Documents and the Note Documents:

         (a) failure by the Company to pay interest on any of the Notes when it
becomes due and payable and the continuance of any such failure for 5 days;

         (b) failure by the Company to pay the principal of any of the Notes
when it becomes due and payable, whether at stated maturity, upon redemption,
upon purchase, upon acceleration or otherwise;

         (c) failure to perform, keep, or observe any term, provision, covenant,
or agreement contained in Sections 4.08, 4.11(b), 4.12, 4.16, 4.17, 11.07, 11.09
(except to the extent applicable under clause (t) of this Section 6.01), 11.12,
11.17 and Article V of this Agreement;

         (d) failure to perform, keep, or observe any term, provision, covenant,
or agreement contained in Sections 4.04, 4.06, 4.07, 4.09, 4.10, 4.11(a), 4.13,
4.15, 4.19 and 11.10 of this Agreement and such failure continues for a period
of 20 Business Days;

         (e) failure by a Note Party to perform, keep, or observe any other
term, provision, covenant, or agreement contained in this Agreement or in any of
the other Note Documents (giving effect to any grace periods, cure periods, or
required notices, if any, expressly provided for in such Note Documents); in
each case, other than any such term, provision, covenant, or agreement that is
the subject to another provision of this Section 6.01 (in which event such other
provision of this Section 6.01 shall govern), and such failure continues for a
period of 20 Business Days;

         (f) if any material portion of any Note Party's assets is attached,
seized, subjected to a writ or distress warrant, levied upon, or comes into the
possession of any third Person;

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<PAGE>

         (g) if any Note Party is enjoined, restrained, or in any way prevented
by court order from continuing to conduct all or any material part of its
business affairs;

         (h) if a notice of Lien, levy, or assessment, individually or in the
aggregate in an amount of $500,000 or greater, is filed of record with respect
to any Note Party's assets by the United States or Canada, or any department,
agency, or instrumentality thereof, or by any state, province, territory,
county, municipal, or governmental agency, or if any taxes or debts owing at any
time hereafter to any one or more of such entities becomes a Lien, whether
choate or otherwise, upon any Borrower's or any of its Subsidiaries' assets and
the same is not paid on the payment date thereof;

         (i) if a judgment or other claim becomes a Lien or encumbrance upon any
material portion of any Note Party's properties or assets;

         (j) if there is a default in any material agreement to which any Note
Party is a party including, without limitation, any Material Contract, Affiliate
Contract or any material contract with any of SAC Holding, SSI, PMSR or PM
Preferred (other than the New AMERCO Notes and the Synthetic Leases) or any
other Indebtedness in excess of $1,000,000, and such default (a) occurs at the
final maturity of the obligations thereunder, or (b) results in the acceleration
of the maturity of the applicable Note Party's obligations thereunder;

         (k) except as otherwise set forth in the Reorganization Plan or as
otherwise permitted by this Agreement, if any Note Party makes any payment on
account of Indebtedness that has been contractually subordinated in right of
payment to the payment of the Obligations of the Note Parties under the Notes
and the other Note Documents;

         (l) if the obligation of any Guarantor under the Guaranty Agreement or
the Note Guarantee is limited or terminated by operation of law or by such
Guarantor thereunder;

         (m) if this Agreement or any other Note Document that purports to
create a Lien, shall, for any reason, fail or cease to create a valid and
perfected, except to the extent permitted by the terms hereof or thereof, Lien
on or security interest (each, second in priority only to the first priority
security interests granted to Bank Lenders' Agent pursuant to the New Credit
Agreement and the other Loan Documents (as defined in the New Credit Agreement))
in the Collateral covered hereby or thereby;

         (n) if any provision of any Note Document shall at any time for any
reason be declared to be null and void, or the validity or enforceability
thereof shall be contested by any Note Party, or a proceeding shall be commenced
by any Note Party, or by any Governmental Authority having jurisdiction over any
Note Party, seeking to establish the invalidity or unenforceability thereof, or
any Note Party shall deny that any Note Party has any liability or obligation
purported to be created under any Note Document;

         (o) if suit or action is commenced against the Trustee and/or any Note
Holder and, as to any suit or action brought by any Person other than the Note
Parties or an officer or employee of the Note Parties, is continued without
dismissal for 30 days after service thereof on the Trustee, that asserts, by or
on behalf of the Note Parties, any claim or legal or equitable remedy which

                                       72

<PAGE>

seeks subordination of the claim or Lien of the Trustee and/or any Note Holder
hereunder or under any other Note Document;

         (p) if any Note Party shall file any application in support of, or
shall otherwise fail to contest in good faith, a suit or action of the type set
forth in clause (o) of this Section 6.01 filed by any Person other than a
Borrower or an officer or employee of Borrowers;

         (q) if an Insolvency Proceeding is commenced by or against any Note
Party, or any of its Subsidiaries (other than INW), and any of the following
events occur: (a) the applicable Note Party or the Subsidiary consents to the
institution of the Insolvency Proceeding against it, (b) the petition commencing
the Insolvency Proceeding is not timely controverted, (c) the petition
commencing the Insolvency Proceeding is not dismissed within 45 calendar days of
the date of the filing thereof, (d) an interim trustee is appointed to take
possession of all or any substantial portion of the properties or assets of, or
to operate all or any substantial portion of the business of, any Note Party or
any of its Subsidiaries, or (e) an order for relief shall have been entered
therein;

         (r) (i) if any event of default occurs under any New AMERCO Note
Document or any of the Synthetic Leases; (ii) if any holder of New AMERCO Notes
contests that the Obligations hereunder constitute "Senior Indebtedness" under
the New AMERCO Notes Indenture; or (iii) any event of default occurs under the
New Credit Agreement or any other Loan Document (as defined in the New Credit
Agreement);

         (s) failure by the Note Parties to register substantially all of the
Certificates of Title pursuant to Section 11.01(c) within 180 days after the
Issue Date;

         (t) failure by the Note Parties to deliver the Mortgages, related
fixture filings and Mortgage Policies pursuant to Section 11.01(a), and to the
extent applicable, Section 11.09, within 60 days after the Issue Date; or

         (u) if any material misstatement or material misrepresentation exists
now or hereafter in any warranty, representation, statement, or Record made to
the Holders by any Borrower, its Subsidiaries, or any officer, employee, agent,
or director of any Borrower or any of its Subsidiaries.

         6.02 Acceleration.

         (a) If an Event of Default (other than an Event of Default specified in
clause (q) of Section 6.01 hereof with respect to the Company) shall have
occurred and be continuing, then the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding, may declare all
amounts owing under the Notes to be due and payable immediately, by notice in
writing to the Company (and to the Trustee if given by Holders). Upon such
declaration of acceleration, the aggregate principal of and accrued and unpaid
interest on the outstanding Notes shall immediately become due and payable;
provided, however, that after such acceleration, but before a judgment or decree
based on acceleration, the Required Holders may rescind and annul such
acceleration, by notice in writing to the Company and the Trustee, if all Events
of Default, other than the nonpayment of accelerated principal and interest,
have been cured or waived as provided in this Agreement. If an Event of Default
specified in clause (q) of

                                       73

<PAGE>

Section 6.01 hereof occurs with respect to the Company, all outstanding Notes
shall become due and payable without any further action or notice.

         (b) In the case of an Event of Default occurring by reason of any
willful action (or inaction) taken (or not taken) by or on behalf of the Company
with the intention of avoiding payment of the premium that the Company would
have had to pay if the Company then had elected to redeem the Notes, an
equivalent premium shall also become and be immediately due and payable, to the
extent permitted by law, upon the acceleration of the Notes. If an Event of
Default occurs prior to March 16, 2005 by reason of any willful action (or
inaction) taken (or not taken) by or on behalf of the Company with the intention
of avoiding the prohibition on redemption of the Notes prior to March 16, 2005,
then, upon acceleration of the notes, an additional premium shall also become
and be immediately due and payable, to the extent permitted by law, in an amount
equal to 9%.

         6.03 Other Remedies.

         (a) If an Event of Default occurs and is continuing, the Trustee may
pursue any available remedy (including, without limitation, those set forth in
Section 11.13) to collect the payment of principal, premium, fees and Additional
Interest, if any, and interest on the Notes or to enforce the performance of any
provision of the Notes or this Agreement or the Security Documents.

         (b) The Trustee may maintain a proceeding even if it does not possess
any of the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law; and shall be in addition to every
other remedy given hereunder or under the Security Documents or existing at law
or in equity or by statute on or after the date hereof.

         6.04 Waiver of Past Defaults.

         The Required Holders, by notice to the Trustee, may on behalf of the
Holders of all of the Notes waive an existing Default or Event of Default and
its consequences hereunder, except a continuing Default or Event of Default in
the payment of the principal of, premium, fees and Additional Interest, if any,
or interest on, the Notes (including in connection with an offer to purchase)
(provided that the Required Holders may rescind an acceleration and its
consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default (except nonpayment of principal or
interest that has become due solely because of the acceleration) have been cured
or waived). 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 Agreement; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon.

         6.05 Control by Majority.

         The Required Holders may direct the time, method and place of
conducting any proceeding for exercising any remedy available to the Trustee or
exercising any trust or power

                                       74

<PAGE>

conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with law or this Agreement, the Intercreditor Agreement, any Security
Document, or other Note Document, or that the Trustee determines may be unduly
prejudicial to the rights of other Holders of Notes or that may involve the
Trustee in personal liability.

         6.06 Limitation on Suits.

         A Holder of a Note may institute a proceeding with respect to this
Agreement, any of the Security Documents, the Notes or for any remedy hereunder
or thereunder only if:

         (a) the Holder of a Note gives to the Trustee written notice of a
continuing Event of Default;

         (b) the Holders of at least 25% in aggregate principal amount of the
then outstanding Notes make a written request to the Trustee to pursue the
remedy;

         (c) such Holder of a Note or Holders of Notes offer and, if requested,
provide to the Trustee indemnity satisfactory to the Trustee against any loss,
liability or expense which might be incurred in compliance with such request or
direction;

         (d) the Trustee does not comply with the request within 60 days after
receipt of the request; and

         (e) during such 60-day period the Required Holders do not give the
Trustee a direction inconsistent with the request.

         A Holder of a Note may not use this Agreement or any Security Document
to prejudice the rights of another Holder of a Note or to obtain a preference or
priority over another Holder of a Note.

         However, such limitations do not apply to a suit instituted by a Holder
of any Note for enforcement of payment of the principal of or interest on such
Note on or after the due date therefor (after giving effect to the grace period
specified in Section 6.01(a) hereof).

         6.07 Rights of Holders of Notes to Receive Payment.

         Notwithstanding any other provision of this Agreement, the right of any
Holder of a Note to receive payment of principal, premium, fees and Additional
Interest, if any, and interest on the Note, on or after the respective due dates
expressed in the Note (including in connection with an offer to purchase), or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder,
including the amounts provided for in Section 7.07 hereof.

         6.08 Collection Suit by the Trustee.

         If an Event of Default specified in Section 6.01(a) or (b) occurs and
is continuing, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Company for the whole amount of
principal of, premium, fees and Additional Interest,

                                       75

<PAGE>

if any, and interest remaining unpaid on the Notes and interest on overdue
principal and, to the extent lawful, interest and 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.

         6.09 The Trustee May File Proofs of Claim.

         The Trustee is authorized to file such proofs of claim and 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, its agents and counsel, including the
amounts provided for in Section 7.07 hereof) and the Holders of the Notes
allowed in any judicial proceedings relative to the Company (or any other
obligor under the Notes), its creditors or its property and shall be entitled
and empowered to collect, receive and distribute any money or other property
payable or deliverable on any such claims and any Custodian in any such judicial
proceeding is hereby authorized by each Holder 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, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall
be secured by a Lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and other properties that the Holders may be
entitled to receive in connection with any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor upon the
Notes or the property of the Company or of such other obligor or their creditors
or the Trustee (irrespective of whether the principal of the Notes 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, Additional Interest, premium of, fees or
interest on the Notes). Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.

         6.10 Priorities.

         If the Trustee collects any money pursuant to this Article VI, it shall
pay out the money in the following order:

                  First: to the Trustee, its agents and attorneys for amounts
         due under Section 7.07 hereof, including payment of all compensation,
         expense and liabilities incurred, and all advances made, by the Trustee
         and the costs and expenses of collection;

                  Second: to Holders of Notes for amounts due and unpaid on the
         Notes for principal, premium, fees and Additional Interest, if any, and
         interest, ratably, without

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<PAGE>

         preference or priority of any kind, according to the amounts due and
         payable on the Notes for principal, premium, fees and Additional
         Interest, if any and interest, respectively;

                  Third: without duplication, to Holders for any other
         Obligations owing to the Holders under the Notes, this Agreement or the
         other Note Documents; and

                  Fourth: to the Company or to such party as a court of
         competent jurisdiction shall direct.

         The Trustee may fix a record date and payment date for any payment to
Holders of Notes pursuant to this Section 6.10.

         6.11 Undertaking for Costs.

         In any suit for the enforcement of any right or remedy under this
Agreement or any Security Document or in any suit against the Trustee for any
action taken or omitted by it as a the Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys' fees, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant. This Section does not apply to a suit by the Trustee
or a suit by a Holder of a Note pursuant to Section 6.07 hereof.

         6.12 The Trustee May Enforce Claims Without Possession of Notes.

         All rights of action and claims under this Agreement, the Notes or any
other Note Document may be prosecuted and enforced by the Trustee without the
possession of any of the Notes or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name and 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 or its agents and counsel,
be for the ratable benefit of the Holders in respect of which such judgment has
been recovered.

         6.13 Restoration of Rights and Remedies.

         If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Agreement, any Security Document or any other
Note Document 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 shall be restored severally and
respectively to their former positions hereunder and under such Security
Document or any other Note Document and thereafter all rights and remedies of
the Trustee and the Holders shall continue as though no such proceeding had been
instituted.

         6.14 Rights and Remedies Cumulative.

         Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Notes in the last paragraph of Section
2.07, no right or remedy herein

                                       77
<PAGE>

conferred or conferred under any Security Document or other Note Document upon
or reserved to the Trustee or to the Holders 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.

         6.15 Delay or Omission Not Waiver.

         No delay or omission of the Trustee or of any Holder 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 acquiescence
therein. Every right and remedy given by this Agreement or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may be.

                                  ARTICLE VII

                                    TRUSTEE

         7.01 Duties of the Trustee.

         (a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise such of the rights and powers vested in it by this Agreement and
the other Note Documents, and use the same degree of care and skill in its
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:

                  (i) the duties of the Trustee shall be determined solely by
         the express provisions of this Agreement or any other Note Document and
         the Trustee need perform only those duties that are specifically set
         forth in this Agreement and the other Note Documents and no others, and
         no implied covenants or obligations shall be read into this Agreement
         or any other Note Document against the Trustee; and

                  (ii) 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 Agreement and the Security Documents. However, the Trustee shall
         examine the certificates and opinions to determine whether or not they
         conform to the requirements of this Agreement and the Security
         Documents, but need not confirm or investigate the accuracy of
         mathematical calculations or other facts stated therein.

         (c) The Trustee may not be relieved from liabilities for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

                  (i) this paragraph (c) does not limit the effect of paragraph
         (b) or (d) of this Section 7.01;

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<PAGE>

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

                  (iii) the Trustee shall not be liable with respect to any
         action it takes or omits to take in good faith in accordance with a
         direction received by it pursuant to Section 6.05 hereof.

         (d) No provision of this Agreement or any Security Document shall
require the Trustee to expend or risk its own funds or incur any liability. The
Trustee shall be under no obligation to exercise any of its rights and powers
under this Agreement or any Security Document at the request or direction of any
Holders, unless such Holder shall have offered to the Trustee security and/or
indemnity satisfactory to it against the cost, loss, liability or expense that
might be incurred by it in compliance with such request or direction.

         (e) Whether or not therein expressly so provided, every provision of
this Agreement that in any way relates to the Trustee is subject to Sections
7.01(a), (b), (c) and (d).

         (f) The Trustee shall not be liable for interest on any money received
by it except as the Trustee may agree in writing with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.

         (g) Each Holder of Notes, by its acceptance thereof, consents and
agrees to the terms of the Security Documents and Intercreditor Agreement as the
same may be in effect or may be amended from time to time in accordance with
their respective terms and the terms hereof and authorizes and directs the
Trustee (in its capacities as trustee and Collateral Trustee for the Holders) to
enter into the Security Documents and Intercreditor Agreement upon the execution
thereof by the other parties thereto and to perform its obligations and exercise
its rights thereunder in accordance therewith.

         (h) As of the Issue Date, Wells Fargo Bank, N.A. is acting as the
Trustee and the Collateral Trustee hereunder. Accordingly, any references to the
"Trustee" herein refers to Wells Fargo Bank, N.A. as serving in both such
capacities. At such time that a successor to Wells Fargo Bank, N.A., is
appointed as the Trustee hereunder or as the Collateral Trustee hereunder, the
duties, rights and obligations of the "Trustee" as set forth in this Agreement
on the Issue Date shall be segregated amongst each of the successors in writing.

         7.02 Rights of the Trustee.

         (a) The Trustee may conclusively rely upon any document believed by it
to be genuine and to have been signed or presented by the proper Person. The
Trustee need not investigate any fact or matter stated in the document.

         (b) Before the Trustee authenticates Notes, takes any other act or
refrains from acting, it may require an Officer's Certificate or an opinion of
counsel or both. The Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on such Officer's Certificate or opinion
of counsel or both. The Trustee may consult with counsel of its selection and
the advice of such counsel or any opinion of counsel shall be full and complete
authorization

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<PAGE>

and protection from liability in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon.

         (c) The Trustee may act through its attorneys and agents and shall not
be responsible for the misconduct or negligence of any such attorneys or agent
appointed with due care.

         (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the rights or
powers conferred upon it by this Agreement, the Security Documents and the other
Note Documents. The Trustee shall not be liable for any claims, losses,
liabilities, damages, costs, expenses, judgments (including reasonable
attorney's fees and expenses) due to forces beyond its reasonable control,
including strikes, work stoppages, acts of God and interruptions, losses or
malfunctions of utilities, communications or computer (software or hardware)
services.

         (e) Unless otherwise specifically provided in this Agreement or any
Security Document, any demand, request, direction or notice from the Company
shall be sufficient if signed by an Officer of the Company.

         (f) Except as required hereunder or under the other Note Documents, or
as required in its capacity as Collateral Trustee, 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,
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 sees
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 any Borrower, personally or by agent or attorney, and shall incur no
liability or additional liability of any kind by reason of such inquiry or
investigation.

         (g) The Trustee shall not be deemed to have notice of any Default or
Event of Default except (i) any Event of Default occurring pursuant to Section
6.01(a) or Section 6.01(b), or (ii) any Default or Event of Default of which the
Trustee shall have received written notification at the Corporate Trust Office
of the Trustee (given in accordance with Section 13.02 hereof and specifically
identifying such Default or Event of Default) or a Responsible Officer of the
Trustee has actual knowledge thereof.

         (h) The rights, privileges, protections, immunities and benefits given
to the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, whether as the Trustee, Collateral Trustee, Paying Agent, Registrar
or otherwise, and to each agent, Depositary Custodian, Co-Collateral Trustee and
other Person employed to act hereunder, and to the Trustee or any successor when
acting in its capacity as the Trustee, Collateral Trustee or any other capacity
under the Intercreditor Agreement, the Security Documents and other Note
Documents to the same extent as if explicitly set forth in the Intercreditor
Agreement, the Security Documents and other Note Documents.

         (i) The Trustee may request that the Company deliver an Officer's
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified

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actions pursuant to this Agreement, which Officer's Certificate may be signed by
any Person authorized to sign an Officer's Certificate, including any Person
specified as so authorized in any such certificate previously delivered and not
superseded.

         (j) The Trustee shall not be deemed to have notice of or have a duty to
determine whether any information that it may receive with respect to the
Company or any other Note Party, or that it or any Note Holder may provide to
the Holders, is material, nonpublic information of a type that should not be
used by the recipient to trade in securities of the Company, except for such
information identified by the Company in writing on the face thereof as
material, non-public information. Except with respect to the Trustee's
obligation to require Holders to enter into a standstill and confidentiality
agreement as set forth in Section 4.04, the Trustee shall not be responsible for
how such information is used or for obtaining any agreement from the recipient
of such information with respect to the use thereof.

         7.03 Individual Rights of the Trustee.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Notes and may otherwise deal with the Company or any
Affiliate of the Company with the same rights it would have if it were not the
Trustee. Any Agent may do the same with like rights and duties. The Trustee
shall comply with Section 310(b) of the TIA. The Trustee is also subject to
Sections 7.10 and 7.11 hereof.

         7.04 The Trustee's Disclaimer.

         The Trustee shall not be responsible for and makes no representation as
to the validity or adequacy of this Agreement, the Security Documents, the Notes
or the Note Guarantees, it shall not be accountable for the Company's use of the
proceeds from the Notes or any money paid to the Company or upon the Company's
direction under any provision of this Agreement, it shall not be responsible for
the use or application of any money received by any Paying Agent other than the
Trustee, and it shall not be responsible for any statement or recital herein or
any statement in the Notes or any other document in connection with the sale of
the Notes or pursuant to this Agreement other than its certificate of
authentication.

         7.05 Notice of Defaults.

         If a Default or Event of Default occurs and is continuing and if it is
actually known to a Responsible Officer of the Trustee, the Trustee shall mail
to Holders of Notes a notice of the Default or Event of Default within 30 days
after it becomes known to such Responsible Officer of the Trustee. Except in the
case of a Default or Event of Default (a) in payment of principal of, premium,
fees, Additional Interest, if any, or interest on any Note or (b) in compliance
with Section 5.01 hereof, the Trustee may withhold the notice if and so long as
a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes. The
Trustee shall not be required to take notice or be deemed to have notice or
knowledge of any Default or Event of Default hereunder (expect failure by the
Company to make any payments to the Trustee required to be made hereunder)
unless a Responsible Officer of the Trustee is specifically notified in writing
of such Default or Event of Default by the Company or by a Holder in accordance
with Section 13.02 hereof and, in the

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absence of such notice, the Trustee may conclusively assume that no Default or
Event of Default has occurred and is continuing.

         7.06 Reports by the Trustee to Holders of the Notes.

         Within 60 days after each September 1 beginning with the September 1
following the date of this Agreement, and for so long as Notes remain
outstanding, the Trustee shall mail to the Holders of the Notes a brief report
dated as of such reporting date that complies with TIA Section 313(a) (but if no
event described in TIA Section 313(a) has occurred within the twelve months
preceding the reporting date, no report need be transmitted). The Trustee also
shall comply with TIA Section 313(b)(2). The Trustee shall also transmit by mail
all reports as required by TIA Section 313(c).

         A copy of each report at the time of its mailing to the Holders of
Notes shall be mailed to the Company and filed with the SEC and each stock
exchange on which the Notes are listed in accordance with TIA Section 313(d).
The Company shall promptly notify the Trustee when the Notes are listed on any
stock exchange or of any delisting thereof.

         Upon the written request of a Holder, the Trustee shall deliver as soon
as reasonably practicable to such Holder any financial statements, certificates
or reports delivered to the Trustee by the Company in connection with this
Agreement; provided that the Trustee shall not deliver any material, non-public
information (all information received pursuant to Section 4.04 or pursuant to
other provisions of this Agreement and identified as such in writing by the
Company on the face thereof, except for information received pursuant to Section
4.04(d) and Section 4.04(i)) received from any Note Party to a Holder of the
Notes unless such Holder enters into a standstill and confidentiality agreement
in form and substance satisfactory to the Trustee and the Company, which shall
provide for, among other things, that the recipients of such information shall
indemnify the Trustee for any misuse or improper disclosure of such information.
Notwithstanding Section 13.02 of this Agreement, to satisfy the delivery
requirements to such Holder under this paragraph, the Trustee may at its option
either (a) deliver such information in accordance with Section 13.02 or (b) file
or post electronically such information in a manner and method mutually
acceptable to the Company and the Trustee and that provides for such Holder's
access to such information.

         7.07 Compensation and Indemnity.

         The Company shall pay to the Trustee from time to time such
compensation for its acceptance of this Agreement, the Security Documents and
other Note Documents and services hereunder and thereunder as the Company and
the Trustee shall agree to in writing from time to time. The Trustee's
compensation shall not be limited by any law on compensation of the trustee of
an express trust. The Company shall reimburse the Trustee promptly upon request
for all reasonable disbursements, advances and expenses incurred or made by it
in addition to the compensation for its services. Such expenses shall include
the reasonable compensation, disbursements and expenses of the Trustee's agents
and counsel.

         The Company shall indemnify the Trustee and any predecessor the Trustee
(and each of their respective officers, directors, employees and agents) against
any and all losses, liabilities or expenses (including reasonable attorneys'
fees and expenses) incurred by it including taxes

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<PAGE>

(other than taxes based upon the income of the Trustee) arising out of or in
connection with the acceptance or administration of its duties under this
Agreement and the other Note Documents, including the costs and expenses of
enforcing this Agreement and the other Note Documents against the Company
(including this Section 7.07) and defending itself against any claim (whether
asserted by the Company or any Holder or any other person) or liability in
connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent any such loss, liability or expense may be
attributable to its negligence or bad faith. The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity. Failure by the
Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder. The Company shall defend the claim and the Trustee shall
cooperate in the defense. The Trustee may have separate counsel and the Company
shall pay the reasonable fees and expenses of such counsel. The Company need not
pay for any settlement made without its consent, which shall not be unreasonably
withheld. The Company shall not, without the prior written consent of the
Trustee, settle or compromise or consent to the entry of any judgment with
respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification has been sought under this Section unless such
settlement, compromise or consent (i) includes an unconditional release of the
Trustee from all liability arising out of such litigation, investigation,
proceeding or claim, and (ii) does not include a statement as to, or an
admission or, fault, culpability or a failure to act by or on behalf of the
Trustee.

         The obligations of the Company under this Section 7.07 shall survive
the satisfaction and discharge of this Agreement or any other Note Document, any
rejection or termination of this Agreement or any Note Document under any
bankruptcy law or the resignation or removal of the Trustee.

         To secure the Company's payment obligations in this Section, the
Trustee shall have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Notes. Such Lien shall survive the satisfaction and
discharge of this Agreement and the other Note Documents.

         Without prejudice to any other rights available to the Trustee under
applicable law, when the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.01(q) hereof occurs, the expenses and
the compensation for the services (including the fees and expenses of its agents
and counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

         The Trustee shall comply with the provisions of TIA Section 313(b)(2)
to the extent applicable.

         7.08 Replacement of the Trustee.

         A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section. Unless Wells Fargo Bank, N.A. will
remain a Co-Collateral Trustee, a resignation or removal of the Trustee in its
capacity as Collateral Trustee shall become effective and the successor Trustee
or Co-Collateral Trustee shall have all the rights, powers and duties of the
Trustee (with respect to Collateral) and/or the Collateral Trustee under this
Agreement and

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<PAGE>

the other Note Documents only upon the successor Collateral Trustee's or the
successor Trustee's acceptance of appointment as provided in this Article and
the completion in full of the assignment of all Security Documents, filings,
recordation and all other actions necessary and appropriate to maintain the
perfection of the Liens in favor of the Trustee for the benefit of the Holders.

         The Trustee may resign in writing at any time and be discharged from
the trust hereby created by so notifying the Company. The Required Holders may
remove the Trustee by so notifying the Trustee and the Company in writing. The
Company may remove the Trustee if:

         (a) the Trustee fails to comply with Section 7.10 hereof;

         (b) the Trustee is adjudged a bankrupt or an insolvent or an order for
relief is entered with respect to the Trustee under any Bankruptcy Law;

         (c) a Custodian or public officer takes charge of the Trustee or its
property; or

         (d) the Trustee becomes incapable of acting.

         If the Trustee resigns or is removed or if a vacancy exists in the
office of the Trustee for any reason, the Company shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the
Required Holders may appoint a successor Trustee to replace the successor
Trustee appointed by the Company.

         If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company, or
the Holders of at least 10% in principal amount of the then outstanding Notes
may, at the expense of the Company, petition any court of competent jurisdiction
for the appointment of a successor Trustee.

         If the Trustee, after written request by any Holder who has been a
Holder for at least six months, fails to comply with Section 7.10, such Holder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

         A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Agreement and the other Note Documents. The successor Trustee shall
mail a notice of its succession to Holders. Unless Wells Fargo Bank, N.A. will
remain a Co-Collateral Trustee, a resignation or removal of the Trustee in its
capacity as Collateral Trustee shall become effective and the successor Trustee
or Co-Collateral Trustee shall have all the rights, powers and duties of the
Trustee and/or the Collateral Trustee under this Agreement and the other Note
Documents only upon the successor Collateral Trustee's or the successor
Trustee's acceptance of appointment as provided in this Article and the
completion in full of the assignment of all Security Documents, filings,
recordation and all other actions necessary and appropriate to maintain the
perfection of the Liens in favor of the Trustee for the benefit of the Holders.

         The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee; provided all sums owing to the Trustee
hereunder have been paid and subject

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<PAGE>

to the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of
the Trustee pursuant to this Section 7.08, the Company's obligations under
Section 7.07 hereof shall continue for the benefit of the retiring the Trustee
and the Company shall pay to any such replaced or removed Trustee all amounts
owed under Section 7.07 upon such replacement or removal.

         If an instrument of acceptance by a successor Trustee shall not have
been delivered to the Trustee within 60 days after the giving of such notice of
resignation or removal, the resigning or removed Trustee, as the case may be,
may petition, at the expense of the Company, any court of competent jurisdiction
for the appointment of a successor Trustee with respect to the Notes.

         7.09 Successor Trustee by Merger, etc.

         If the Trustee consolidates, merges or converts into, or transfers all
or substantially all of its corporate trust business to, another corporation,
the successor corporation without any further act shall be the successor
Trustee.

         7.10 Eligibility; Disqualification.

         There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least $100 million
as set forth in its most recent published annual report of condition.

         This Agreement shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1), (2) and (5). The Trustee is subject to
TIA Section 310(b).

         7.11 Preferential Collection of Claims Against Company.

         The Trustee is subject to TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated therein.
The provisions of TIA Section 311 shall apply to the Company, as obligor on the
Notes.

         7.12 Additional Co-Collateral Trustees; Separate Collateral Trustees.

         (a) If at any time or times it shall be necessary or prudent in order
to conform to any law of any jurisdiction in which any of the Collateral shall
be located or deemed located, or the Trustee shall be advised by counsel,
satisfactory to it, that it is necessary or prudent in the interest of the
Holders, or the Required Holders shall in writing so request, or the Trustee
shall deem it desirable, the Trustee and the Company shall, and shall cause each
Guarantor to, execute and deliver all instruments and agreements necessary or
proper to constitute another bank or trust company, or one or more persons
approved by the Trustee and reasonably satisfactory to the Company either (i) to
act as Co-Collateral Trustee or Co-Collateral Trustees of all or any of the
Collateral, jointly with the Trustee originally named herein or any successor or
successors, or (ii) to act as separate or a replacement Collateral Trustee or
Collateral Trustees of any such property or (iii) to replace Collateral Trustee
as a successor Collateral Trustee. In the event the Company and

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<PAGE>

Guarantors shall not have joined in the execution of such instruments and
agreements within 10 days after the receipt of a written request from the
Trustee so to do, or in case an Event of Default shall have occurred and be
continuing, the Trustee may act under the foregoing provisions of this Section
7.12 without the concurrence of the Company and Guarantors, and the Company and
the Guarantors hereby irrevocably appoint the Trustee as their agent and
attorney to act for them under the foregoing provisions of this Section 7.12 in
either of such contingencies. Unless Wells Fargo Bank, N.A. will remain a
Co-Collateral Trustee, a resignation or removal of the Trustee in its capacity
as Collateral Trustee shall become effective and the successor Trustee or
Co-Collateral Trustee shall have all the rights, powers and duties of the
Trustee (with respect to Collateral) and/or the Collateral Trustee under this
Agreement and the other Note Documents only upon the successor Collateral
Trustee's or the successor Trustee's acceptance of appointment as provided in
this Article and the completion in full of the assignment of all Security
Documents, filings, recordation and all other actions necessary and appropriate
to maintain the perfection of the Liens in favor of the Trustee for the benefit
of the Holders.

         (b) Every separate Collateral Trustee and every Co-Collateral Trustee
appointed in accordance with Section 7.12(a)(i) or (ii) hereof, shall, to the
extent permitted by law, be appointed and act and be such, subject to the
following provisions and conditions, namely:

                  (i) all rights, powers, duties and obligations conferred upon
         the Collateral Trustee in respect of the custody, control and
         management of moneys, papers, instruments or securities shall be
         exercised solely by the Trustee, or its successors as the Trustee
         hereunder;

                  (ii) all rights, powers, duties and obligations (including the
         obligations contained in the Intercreditor Agreement) conferred or
         imposed upon the Collateral Trustee hereunder shall be conferred or
         imposed and exercised or performed by the Collateral Trustee and such
         separate Collateral Trustee or separate Collateral Trustees or
         Co-Collateral Trustee or Co-Collateral Trustees, jointly, as shall be
         provided in the instrument appointing such separate Collateral Trustee
         or separate Collateral Trustees or Co-Collateral Trustee or
         Co-Collateral Trustees, except to the extent that under any law of any
         jurisdiction in which any particular act or acts are to be performed,
         the Collateral Trustee shall be incompetent or unqualified to perform
         such act or acts, in which event such rights, powers, duties and
         obligations shall be exercised and performed by such separate
         Collateral Trustee or separate Collateral Trustees or Co-Collateral
         Trustee or Co-Collateral Trustees;

                  (iii) no power given hereby to, or which it is provided hereby
         may be exercised by, any such Co-Collateral Trustee or Co-Collateral
         Trustees or separate Collateral Trustee or separate Collateral
         Trustees, shall be exercised hereunder by such Co-Collateral Trustee or
         Co-Collateral Trustees or separate Collateral Trustee or separate
         Collateral Trustees, except jointly with, or with the consent in
         writing of, the Collateral Trustee, anything herein contained to the
         contrary notwithstanding;

                  (iv) no Collateral Trustee hereunder shall be personally
         liable by reason of any act or omission of any other Collateral Trustee
         hereunder; and

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<PAGE>

                  (v) the Company, Guarantors and the Trustee, at any time by an
         instrument in writing, executed by them jointly, may accept the
         resignation of or remove any such separate Collateral Trustee or
         Co-Collateral Trustee, and in that case, by an instrument in writing
         executed by the Guarantors and the Trustee jointly, may appoint a
         successor to such separate Collateral Trustee or Co-Collateral Trustee,
         as the case may be, anything herein contained to the contrary
         notwithstanding. In the event that the Company and the Guarantors shall
         not have joined in the execution of any instrument within 10 days after
         the receipt of a written request from the Trustee so to do, or in case
         an Event of Default shall have occurred and be continuing, the Trustee
         shall have the power to accept the resignation of or remove any such
         separate Collateral Trustee or Co-Collateral Trustee and to appoint a
         successor without the concurrence of the Company and the Guarantors,
         the Company and the Guarantors hereby irrevocably appointing the
         Trustee their agent and attorney to act for them in such connection in
         either of such contingencies.

         (c) Every successor Collateral Trustee appointed in accordance with
Section 7.12(a)(iii) hereof shall, upon the acceptance of any appointment as
Collateral Trustee, thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Collateral Trustee, and the
retiring Collateral Trustee shall be discharged from its duties and obligations
hereunder applicable to it as Collateral Trustee. The replacement of Collateral
Trustee by a successor Collateral Trustee shall not be deemed as a resignation
or removal of the Trustee as the Trustee under this Agreement unless the Trustee
expressly resigns as the Trustee or is removed in accordance with Section 7.08
hereof. The replacement of the Trustee by a successor Trustee in accordance with
Section 7.08 hereof shall not be deemed as a resignation or removal of such
Person as the Collateral Trustee under this Agreement unless such Person
expressly resigns as Collateral Trustee in accordance with this Section 7.12 In
the event that the Trustee and Collateral Trustee shall not be the same Person,
this Agreement and the Note Documents shall be modified as advisable and
mutually agreeable among the Company, the Trustee and the Collateral Trustee to
delineate the rights, powers, privileges and duties of the Trustee and
Collateral Trustee. Unless Wells Fargo Bank, N.A. will remain a Co-Collateral
Trustee, a resignation or removal of the Trustee in its capacity as Collateral
Trustee shall become effective and the successor Trustee or Co-Collateral
Trustee shall have all the rights, powers and duties of the Trustee (with
respect to Collateral) and/or the Collateral Trustee under this Agreement and
the other Note Documents only upon the successor Collateral Trustee's or the
successor Trustee's acceptance of appointment as provided in this Article and
the completion in full of the assignment of all Security Documents, filings,
recordation and all other actions necessary and appropriate to maintain the
perfection of the Liens in favor of the Trustee for the benefit of the Holders.

         7.13 Expenses.

         The Company and each other Note Party shall pay upon demand to the
Trustee, the Collateral Trustee or to any Holder the amount of any and all
reasonable expenses, including reasonable fees and expenses of its counsel (and
any local counsel) and of any experts and agents, which such party may incur in
connection with the replacement, removal, resignation, or appointment of a
successor, of the Trustee or Collateral Trustee, including, without limitation,
any and all expenses (including reasonable fees and expenses of such party's
counsel) incurred with respect to the assignment of all Security Documents,
filings, recordation and all other

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<PAGE>

actions necessary and appropriate to maintain the perfection of the Liens in
favor of the successor Trustee or Collateral Trustee for the benefit of the
Holders.

                                  ARTICLE VIII

                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

         8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

         The Company may at any time elect to have either Section 8.02 or 8.03
hereof be applied to all outstanding Notes upon compliance with the conditions
set forth below in this Article VIII.

         8.02 Legal Defeasance and Discharge.

         Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Notes and all
obligations of the Guarantors discharged with respect to the Note Guarantees on
the date the conditions set forth below are satisfied (hereinafter, "Legal
Defeasance"). For this purpose, Legal Defeasance means that the Company and the
Guarantors shall be deemed to have paid and discharged the entire Indebtedness
represented by the outstanding Notes and the Note Guarantees, respectively,
which shall thereafter be deemed to be "outstanding" only for the purposes of
Section 8.05 hereof and the other Sections of this Agreement referred to in (a)
and (b) below, and to have satisfied all its other obligations under such Notes
and this Agreement (and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of outstanding Notes to receive
solely from the trust fund described in Section 8.04 hereof, and as more fully
set forth in such Section, payments in respect of the principal of, premium,
fees and Additional Interest, if any, and interest on such Notes when such
payments are due, (b) the Company's obligations with respect to such Notes under
Article II and Sections 4.02, 4.12, 8.05, 8.06 and 8.07 hereof, (c) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and the under the
Security Documents and the Company's and Guarantor's obligations in connection
therewith and (d) this Article VIII. Subject to compliance with this Article
VIII, the Company may exercise its option under this Section 8.02
notwithstanding the prior exercise of its option under Section 8.03 hereof.

         8.03 Covenant Defeasance.

         Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company and the Guarantors shall, subject
to the satisfaction of the conditions set forth in Section 8.04 hereof, be
released from their obligations under the covenants contained in Article IV
except Sections 4.01, 4.02 and 4.12 and Article V, except Section 5.25 and with
respect to the Company, Section 5.03 hereof with respect to the outstanding
Notes on and after the date the conditions set forth in Section 8.04 are
satisfied (hereinafter, "Covenant Defeasance"), and the Notes shall thereafter
be deemed not "outstanding" for the purposes of

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any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "outstanding" for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under Section 6.01
hereof, but, except as specified above, the remainder of this Agreement, the
Security Documents and such Notes shall be unaffected thereby. In addition, upon
the Company's exercise under Section 8.01 hereof of the option applicable to
this Section 8.03 hereof, subject to the satisfaction of the conditions set
forth in Section 8.04 hereof, Sections 6.01(c) through 6.01(m), Sections 6.01(o)
through 6.01(p), and Section 6.01(r) through Section 6.01(t) hereof shall not
constitute Events of Default.

         8.04 Conditions to Legal or Covenant Defeasance.

         The following shall be the conditions to the application of either
Section 8.02 or 8.03 hereof to the outstanding Notes:

         In order to exercise either Legal Defeasance or Covenant Defeasance:

         (a) the Company must irrevocably deposit with the Trustee, in trust,
for the benefit of the Holders, U.S. legal tender, U.S. Government Obligations
or a combination thereof, in such amounts as will be sufficient (without
reinvestment) in the opinion of a nationally recognized firm of independent
public accountants selected and paid for by the Company, to pay the principal of
and interest on the Notes on the stated date for payment or on the redemption
date of the principal or installment of principal of or interest on the Notes,
and the Holders must have a valid, perfected, exclusive security interest in
such trust;

         (b) in the case of an election under Section 8.02 hereof, the Company
shall have delivered to the Trustee an opinion of counsel in the United States
reasonably acceptable to the Trustee confirming that (i) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling or (ii) since the date of this Agreement, there has been a change in the
applicable U.S. federal income tax law, in either case to the effect that, and
based thereon such opinion of counsel shall confirm that, the Holders of the
outstanding Notes will not recognize income, gain or loss for U.S. federal
income tax purposes as a result of such Legal Defeasance and will be subject to
U.S. federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

         (c) in the case of an election under Section 8.03 hereof, the Company
shall have delivered to the Trustee an opinion of counsel in the United States
reasonably acceptable to the Trustee confirming that the Holders of the
outstanding Notes will not recognize income, gain or loss for U.S. federal
income tax purposes as a result of such Covenant Defeasance and will be

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subject to U.S. federal income tax on the same amounts, in the same manner and
at the same times as would have been the case if such Covenant Defeasance had
not occurred;

         (d) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit (other than a Default or Event of Default
resulting from the borrowing of funds to be applied to such deposit and the
grant of any Lien securing such borrowing);

         (e) such Legal Defeasance or Covenant Defeasance shall not result in a
breach or violation of, or constitute a default under this Agreement or any
other material agreement or instrument to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

         (f) the Company shall have delivered to the Trustee an Officer's
Certificate stating that the deposit was not made by the Company with the intent
of preferring the Holders over any other creditors of the Company or with the
intent of defeating, hindering, delaying or defrauding any other creditors of
the Company;

         (g) the Company shall have delivered to the Trustee an Officer's
Certificate and an opinion of counsel, each stating that the conditions provided
for in, in the case of the Officer's Certificate, clauses (a) through (f) and,
in the case of the opinion of counsel, clauses (a) (with respect to the validity
and perfection of the security interest), (b) and/or (c), (e) and (h) of this
Section 8.04 have been complied with;

         (h) the Company shall have granted a first priority perfected security
interest in the deposit described in Section 8.04(a) for the benefit of the
Trustee on behalf of the Holders, and the Bank Lenders' Agent shall have
released all Liens with respect thereto and consented to such defeasance on
behalf of the Bank Lenders; and

         (i) in the event all or any portion of the Notes are to be redeemed
through such irrevocable trust, the Company must make arrangements reasonably
satisfactory to the Trustee, at the time of such deposit, for the giving of
notice of such redemption or redemptions by the Trustee in the name and at the
expense of the Company.

         8.05 Deposited Money and U.S. Government Obligations to Be Held in
              Trust; Other Miscellaneous Provisions.

         Subject to Section 8.06 hereof, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee, collectively for purposes of this Section 8.05, the
"Trustee") pursuant to Section 8.04 hereof in respect of the outstanding Notes
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Agreement, to the payment, either directly or
through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in respect of principal, premium and Additional Interest, if
any, and interest, but such money need not be segregated from other funds except
to the extent required by law.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or U.S. Government
Obligations deposited pursuant to

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Section 8.04 hereof or the principal and interest received in respect thereof
other than any such tax, fee or other charge which by law is for the account of
the Holders of the outstanding Notes.

         Anything in this Article VIII to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon the request
of the Company any money or U.S. Government Obligations held by it as provided
in Section 8.04 hereof which, in the opinion of a nationally recognized firm of
independent public accountants selected and paid for by the Company, expressed
in a written certification thereof delivered to the Trustee (which may be the
opinion delivered under Section 8.04(a) hereof), are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent
Legal Defeasance or Covenant Defeasance.

         8.06 Repayment to Company.

         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, premium, fees,
Additional Interest, if any, or interest on any Note and remaining unclaimed for
two years after such principal, and premium and fees, if any, or interest has
become due and payable shall be paid to the Company on its request or (if then
held by the Company) shall be discharged from such trust; and the Holder of such
Note shall thereafter 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 being required
to make any such repayment, shall at the expense of the Company cause to be
published once, in The New York Times and The Wall Street Journal (national
edition), 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
notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

         8.07 Reinstatement.

         If the Trustee or Paying Agent is unable to apply any cash or U.S.
Government Obligations in accordance with Section 8.02 or 8.03 hereof by reason
of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application or such cash or U.S.
Government Obligations are insufficient to pay the principal of and interest on
the Notes when due, then the Company's obligations under this Agreement and the
Notes shall be revived and reinstated as though no deposit had occurred pursuant
to Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.02 or 8.03
hereof; provided, however, that, if the Company makes any payment of principal
of, premium, fees and Additional Interest, if any, or interest on any Note
following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money held by the Trustee or Paying Agent.

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                                   ARTICLE IX

                        AMENDMENT, SUPPLEMENT AND WAIVER

         9.01 Without Consent of Holders of Notes.

         Notwithstanding Section 9.02 of this Agreement, the Company and the
Trustee may amend or supplement this Agreement, the Note Guarantees or the Notes
without the consent of any Holder of a Note:

         (a) to cure any ambiguity, defect or inconsistency;

         (b) to provide for uncertificated Notes in addition to or in place of
certificated Notes;

         (c) to release any Guarantor from any of its obligations under its Note
Guarantee or this Agreement (to the extent permitted by this Agreement);

         (d) to make any change that does not materially adversely affect the
legal rights hereunder of any Holder of the Notes; or

         (e) to comply with requirements of the SEC in order to effect or
maintain the qualification of this Agreement under the TIA.

         Upon the request of the Company accompanied by a resolution of its
Board of Directors authorizing the execution of any such amended or supplemental
indenture, and upon receipt by the Trustee of the documents described in Section
9.06 hereof, the Trustee shall join with the Company and the Guarantors in the
execution of any amended or supplemental indenture authorized or permitted by
the terms of this Agreement and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Agreement or under the Security
Documents or otherwise.

         9.02 With Consent of Holders of Notes.

         Except as provided below in this Section 9.02, the Company and the
Trustee may amend or supplement this Agreement (including Section 4.15 hereof),
the Note Guarantees and the Notes with the consent of the Required Holders
(including consents obtained in connection with a tender offer or exchange offer
for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 hereof,
any existing Default (other than a Default in the payment of the principal of,
premium, fees and Additional Interest, if any, or interest on the Notes) under,
or compliance with any provision of, this Agreement, the Note Guarantees or the
Notes may be waived with the consent of the Required Holders (including consents
obtained in connection with a tender offer or exchange offer for, or purchase
of, the Notes).

         Upon the request of the Company accompanied by a resolution of its
Board of Directors authorizing the execution of any such amended or supplemental
indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by
the Trustee of the documents described in Section 9.06 hereof, the

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Trustee shall join with the Company in the execution of such amended or
supplemental indenture unless such amended or supplemental indenture directly
affects the Trustee's own rights, duties or immunities under this Agreement or
under any Security Document or otherwise, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such amended or
supplemental indenture.

         It shall not be necessary for the consent of the Holders of Notes under
this Section 9.02 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof.

         After an amendment, supplement or waiver under this Section becomes
effective, the Company shall mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amended or supplemental
indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Required
Holders may waive compliance in a particular instance by the Company with any
provision of this Agreement or the Notes. However, without the consent of each
Holder affected, an amendment or waiver under this Section 9.02 may not (with
respect to any Notes held by a non-consenting Holder):

         (a) change the maturity of any Note;

         (b) reduce the amount, extend the due date or otherwise affect the
terms of any scheduled payment of premium, fees or Additional Interest on, if
any, or interest on or principal of the Notes;

         (c) change the date on which any Notes are subject to redemption or
otherwise alter the provisions with respect to the redemption of the Notes or
waive a redemption payment with respect to any Note;

         (d) make any Note payable in money or currency other than that stated
in the Notes;

         (e) modify or change any provision of this Agreement or its related
definitions to affect the ranking of the Notes or any Note Guarantee in a manner
that adversely affects the Holders;

         (f) reduce the percentage of Holders necessary to consent to an
amendment or waiver to this Agreement or the Notes;

         (g) impair the rights of Holders to receive payments of principal of or
interest on the Notes;

         (h) release any Guarantor from any of its obligations under its Note
Guarantee or this Agreement, other than as permitted by this Agreement;

         (i) make any change in these amendment and waiver provisions;

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<PAGE>

         (j) release Collateral other than in accordance with the procedures set
forth in the Security Documents, or amend, waive or otherwise modify any
provisions in the Note Documents with respect to the release of Collateral;

         (k) except as permitted by this Agreement and the Security Documents,
create any Lien on the Collateral ranking prior to, or on parity with, the
security interest created by this Agreement and the Security Documents or
deprive any Holder of the benefit of the Lien of this Agreement and the Security
Documents; or

         (l) waive a Default or Event of Default in the payment of principal of
or premium or Additional Interest, if any, interest on, or redemption payment
with respect to, any Note (other than a Default in the payment of an amount due
as a result of an acceleration if the Holders rescind such acceleration pursuant
to Section 6.2).

         Any amendment to Section 4.15 or the related definitions that could
adversely affect the rights of any Holder shall require the consent of the
Holders of at least 66 2/3% in aggregate principal amount of the Notes then
outstanding.

         In connection with any amendment, supplement or waiver, the Company
may, but shall not be obligated to, offer any Holder who consents to such
amendment, supplement or waiver, or to all Holders, consideration for such
Holder's consent to such amendment, supplement or waiver.

         9.03 Compliance with Trust Indenture Act.

         Every amendment or supplement to this Agreement or the Notes shall be
set forth in an amended or supplemental indenture that complies with the TIA as
then in effect.

         9.04 Revocation and Effect of Consents.

         Until an amendment, supplement or waiver becomes effective, a consent
to it by a Holder of a Note is a continuing consent by the Holder of a Note and
every subsequent Holder of a Note or portion of a Note that evidences the same
debt as the consenting Holder's Note, even if notation of the consent is not
made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written
notice of revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

         9.05 Notation on or Exchange of Notes.

         The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. The Company may issue
and the Trustee shall, upon receipt of an Authentication Order, authenticate new
Notes that reflect the amendment, supplement or waiver.

         Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

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<PAGE>

         9.06 The Trustee to Sign Amendments, etc.

         The Trustee shall sign any amended or supplemental indenture authorized
pursuant to this Article IX if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee under this
Agreement, any Security Document or other Note Document or otherwise. If it
does, the Trustee may but need not sign it. The Company may not sign an
amendment or supplemental indenture until the Board of Directors approves it. In
executing any amended or supplemental indenture, the Trustee shall be entitled
to receive and (subject to Section 7.01 hereof) shall be fully protected in
relying upon, in addition to the documents required by Section 12.04 hereof, an
Officer's Certificate and an opinion of counsel.

         9.07 Effect of Amendment of, Refinancing of or Termination of New
              Credit Agreement.

         (a) Notice; Effectiveness. If the New Credit Agreement is amended,
modified, supplemented or terminated, or any provision therein waived, the
Company shall deliver a copy of such waiver, amendment, modification, supplement
or notice of such termination, as the case may be, to the Trustee. In the case
of an amendment, modification or supplement of the New Credit Agreement or
waiver of a provision therein that shall result in the amendment, modification
or supplement of this Agreement or waiver of an Event of Default pursuant to
this Section 9.07, such notice shall also detail such waiver or amendment,
modification or supplement to this Agreement in the form of an amended and
restated indenture, supplemental indenture or other amendment that identifies
such waiver, amendment, modification or supplement with specificity. Any such
waiver with respect to this Agreement or amendment, modification or supplement
to this Agreement shall comply with the TIA as then in effect and be effective
only upon receipt of such notice by the Trustee and the granting of any consent
of Holders required hereby. The provisions of this Section 9.07 shall control
over anything to the contrary in this Agreement. In no event shall any waiver,
amendment, modification or supplement pursuant to this Section 9.07: (i) be used
to cure or avoid an imminent potential Default and/or Event of Default in this
Agreement or an imminent potential default and/ or event of default in the New
Credit Agreement, except as provided in subsection (d) below relating to waivers
of Events of Default, (ii) amend, modify or supersede anything in this Agreement
or the other Note Documents other than Articles IV or V (and/or defined terms
used therein) of this Agreement, or (iii) amend, modify or supersede anything
else that is fundamental to the transactions contemplated by this Agreement,
such as the interest rate and maturity date of the Notes and the rights of the
Holders to transfer or exchange their Notes. Notwithstanding anything to the
contrary in this Section 9.07, no amendment, modification or supplement of any
provision of this Agreement, any Security Document or other Note Document shall
adversely affect the rights, duties, liabilities or immunities of the Trustee
under this Agreement, any Security Document or otherwise without the prior
written consent of the Trustee.

         (b) Change in Accounting Principles. If any change in accounting
principles from those used in the preparation of the audited financial
statements referred to in Section 4.04 hereafter occasioned by the promulgation
of any rule, regulation, pronouncement or opinion by or required by the
Financial Accounting Standards Board (or successors thereto or agencies with
similar functions) result in a change in the method of calculation of financial
covenants, standards or terms found in the covenants contained in the New Credit
Agreement that correspond to Article IV or Article V of this Agreement, then the
method of calculation of

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<PAGE>

financial covenants, standards or terms found in Article IV and Article V hereof
shall be automatically changed in the same manner and to the same extent as
provided in the New Credit Agreement.

         (c) Amendment. If there are any amendments, modifications or
supplements to the covenants contained in Articles 6 and 7 (and/or defined terms
used therein) of the New Credit Agreement after the Issue Date, then the
corresponding covenants contained in Articles IV and V (and/or defined terms
used therein) of this Agreement shall be automatically amended, modified or
supplemented in the same manner and to the same extent as provided in the New
Credit Agreement; provided, however, that before this Agreement shall be so
amended, modified or supplemented, the Required Holders must consent to any such
amendments, modifications or supplements of the New Credit Agreement that if
applied to this Agreement would have the effect of:

                  (i) modifying or superseding Section 5.01 (and/or defined
         terms used therein) or otherwise allowing (whether through an
         amendment, modification or supplement of the covenant contained in the
         New Credit Agreement, as of the Issue Date, that corresponds to Section
         5.01 of this Agreement or an amendment, modification, or supplement of
         some other provision or definition of the New Credit Agreement that has
         a corresponding provision or definition herein) the Company and/or the
         relevant Note Parties to incur, assume, suffer to exist, guarantee,
         refinance or otherwise become or remain, directly or indirectly, liable
         with respect to any additional Indebtedness (other than Capital
         Leases), except subordinated Indebtedness (other than Capital Leases)
         which (A) (1) is in an aggregate amount less than or equal to
         $50,000,000 in excess of the amount of subordinated Indebtedness
         permitted under this Agreement, (2) matures later than one year after
         the maturity date of the Notes, (3) has an original issue discount less
         than 10%, and (4) has a rate of interest at the prevailing market
         interest rate applicable for similar Indebtedness measured at the time
         such additional subordinated Indebtedness is incurred, or (B) (1) is
         incurred to refinance the New AMERCO Notes, (2) is in an aggregate
         amount less than or equal to $200,000,000, (3) matures later than one
         year after the maturity date of the Notes, (4) has an original issue
         discount less than 10%, and (5) has a rate of interest at the
         prevailing market interest rate applicable for similar Indebtedness
         measured at the time such additional subordinated Indebtedness is
         incurred,

                  (ii) modifying or superseding Sections 5.04 or 5.21 (and/or
         defined terms used therein) or otherwise allowing (whether through an
         amendment, modification or supplement of the covenant contained in the
         New Credit Agreement that corresponds to Sections 5.04 or 5.21, the
         definition in the New Credit Agreement that corresponds to clause (o)
         of the definition of "Permitted Dispositions" in Section 1.01 or some
         other provision or definition of the New Credit Agreement that has a
         corresponding provision or definition herein) any additional disposal
         of assets, except Permitted Dispositions of Real Property Collateral of
         the type described in clause (o) of the definition of "Permitted
         Dispositions," provided that the aggregate proceeds of such Permitted
         Disposition of Real Property Collateral in excess of $75,000,000 in
         total after the Issue Date shall be used only to permanently reduce the
         first priority Indebtedness incurred by the Note Parties under the New
         Credit Agreement,

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<PAGE>

                  (iii) amending or superseding the definition of "ECF Carry
         Forward Amount" or "Excess Availability Test" in Section 1.01 or the
         provisions in which such definitions are used,

                  (iv) modifying or superseding Section 5.08 (and/or defined
         terms used therein) or otherwise amending (whether through an
         amendment, modification or supplement of the covenant contained in the
         New Credit Agreement that corresponds to Section 5.08 or some other
         provision or definition of the New Credit Agreement that has a
         corresponding provision or definition herein) the amounts allowed for
         any prepayment or amendment in accordance with Section 5.08 as of the
         Issue Date,

                  (v) modifying or superseding Section 5.11 (and/or defined
         terms used therein) or otherwise amending (whether through an
         amendment, modification or supplement of the covenant contained in the
         New Credit Agreement that corresponds to Section 5.11 or some other
         provision or definition of the New Credit Agreement that has a
         corresponding provision or definition herein) the amounts allowed for
         any distribution in accordance with Section 5.11 as of the Issue Date,
         other than as currently provided for in this Agreement,

                  (vi) modifying or superseding Section 5.09 or otherwise
         amending (whether through an amendment, modification or supplement of
         the covenant contained in the New Credit Agreement, as of the Issue
         Date, that corresponds to Section 5.09 of this Agreement, the
         definition in the New Credit Agreement that corresponds to the
         definition of "Change of Control" in Section 1.01 or some other
         provision or definition of the New Credit Agreement that has a
         corresponding provision or definition herein) the change of control
         restrictions contained in Section 5.09 as of the Issue Date,

                  (vii) modifying or superseding Section 5.14 or otherwise
         amending (whether through an amendment, modification or supplement of
         the covenant contained in the New Credit Agreement, as of the Issue
         Date, that corresponds to Section 5.14 of this Agreement, the
         definition in the New Credit Agreement that corresponds to the
         definition of "Affiliate" in Section 1.01 or some other provision or
         definition of the New Credit Agreement that has a corresponding
         provision or definition herein) the restrictions on transactions with
         Affiliates contained in Section 5.14 as of the Issue Date,

                  (viii) modifying or superseding clause (k) of the definition
         of "Permitted Investment" in Section 1.01 or otherwise amending
         (whether through an amendment, modification or supplement of the
         definition contained in the New Credit Agreement, as of the Issue Date,
         that corresponds to clause (k) of the definition of "Permitted
         Investment" in Section 1.01 or some other provision or definition of
         the New Credit Agreement that has a corresponding provision or
         definition herein) the ability of the Note Parties to make Investments
         (other than those contained in (a) through (j) of the definition of
         "Permitted Investments" contained in Section 1.01) in the aggregate
         amount in excess of $10,000,000,

                  (ix) modifying or superseding Section 5.02 or otherwise
         allowing (whether through an amendment, modification or supplement of
         the covenant contained

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         in the New Credit Agreement, as of the Issue Date, that corresponds to
         Section 5.02 of this Agreement, the definition in the New Credit
         Agreement that corresponds to the definition of "Permitted Liens" in
         Section 1.01 or some other provision or definition of the New Credit
         Agreement that has a corresponding provision or definition herein)
         additional Liens,

                  (x) permitting the Applicable Amounts for any consecutive
         twelve month period contained in Section 5.19(a) of this Agreement to
         be less than 85% of the Applicable Amounts stated therein as of the
         Issue Date or permitting the quarterly EBITDA minus Capital Expenditure
         covenant established for each fiscal quarter after March 2007 pursuant
         to Section 5.19(a) of this Agreement to be less than 85% of such amount
         after being established by the Required Lenders,

                  (xi) permitting the Capital Expenditures to increase in any
         one fiscal year more than $50,000,000 above the scheduled amounts
         permitted and those amounts established for any fiscal year after 2007
         pursuant to the provisions in Section 5.19(b), or

                  (xii) if the Class B Notes are outstanding, amending or
         superseding any financial covenant or any part thereof in this
         Agreement (including, without limitation, as of the Issue Date,
         Sections 5.01, 5.02, 5.04, 5.06, 5.08, 5.09, 5.11, 5.13, 5.14, 5.19 and
         5.21).

         (d) Waiver of Default. If the Class B Notes are not outstanding, and
the Bank Lenders' Agent or Required Lenders, as the case may be, waives or
partially waives any event of default or any part thereof contained in the New
Credit Agreement that corresponds, as of the Issue Date, to an Event of Default
under Section 6.01(d) of this Agreement or an Event of Default under Section
6.01(e) that relates to a Default under Sections 4.03 or 4.05 of this Agreement,
the corresponding Event of Default or part thereof shall be automatically deemed
waived by the Required Holders in the same manner and to the same extent waived
under the New Credit Agreement.

         (e) Refinancing. If the New Credit Agreement is refinanced, the
covenants contained in this Agreement shall remain in the same form as they
exist on the date of the refinancing. Thereafter, if there is an amendment,
modification or supplement to any covenants in the refinanced New Credit
Agreement, subsections (b), (c) and (d) above shall not apply, and the Trustee,
the Holders of the Notes and the Note Parties agree to negotiate in good faith
on replacement provisions for such subsections.

         (f) Termination. If the New Credit Agreement is terminated,
extinguished or otherwise not in force while the Notes are outstanding and this
Agreement is still in effect, references to provisions, sections, articles,
exhibits and schedules of the New Credit Agreement shall be incorporated herein
and the following terms shall be replaced mutatis mutandis:

                  (i) "Required Lenders" shall be replaced with the term
         "Required Holders"; and

                  (ii) "Bank Lenders' Agent" shall be replaced with the term
         "Trustee".

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The parties agree that if the New Credit Agreement is terminated, extinguished
or otherwise not in force, the affected provisions of this Agreement shall be
interpreted in such a manner as to minimize any change in the application of
such provisions from the application of such provisions when the New Credit
Agreement was in effect.

         9.08 WP Carey Transaction.

         Notwithstanding anything to the contrary contained herein, in a Note
Document or a Security Document, each Note Party, each Holder and the Trustee
hereby stipulate and agree that in the event the Company provides the Trustee
with an Officer's Certificate stating that the terms and conditions of any
transaction constituting the WP Carey Transaction comply with the provisions of
Section 5.01(i) hereof, then any special purpose entity formed by a Note Party
after the Issue Date solely for the purpose of consummating such WP Carey
Transaction shall not be subject to the representations, warranties and
covenants in this Agreement and the other Note Documents and Security Documents.

                                   ARTICLE X

                                 NOTE GUARANTEES

         10.01 Guarantee.

         For good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, subject to this Article X, each of the Guarantors
hereby, jointly and severally, fully and unconditionally guarantees to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee
and its successors and assigns, irrespective of the validity and enforceability
of this Agreement, the Notes or the obligations of the Company hereunder or
thereunder, that: (a) the principal of and interest on, and premium and fees on,
if any, the Notes will be promptly paid in full when due, whether at maturity,
by acceleration, redemption or otherwise, and interest on the overdue principal
of and interest on the Notes, if any, if lawful, and all other obligations of
the Company to the Holders or the Trustee hereunder or under the Notes, the
Security Documents or other Note Documents will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or any of such other
obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise (all such obligations guaranteed hereby
being the "Guaranteed Obligations"). Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, the Guarantors
shall be jointly and severally obligated to pay the same immediately. Each
Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

         This guarantee is irrevocable, absolute, present and unconditional.
Each Guarantor guarantees that the Guaranteed Obligations will be paid strictly
in accordance with the terms of this Agreement, regardless of any law,
regulation or order now or hereafter in effect in any jurisdiction affecting any
of such terms or the rights of the Trustee or the Holders with respect thereto.
The liability of each Guarantor under its Guarantee herein shall be absolute and
unconditional irrespective of:

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                  (i) the validity, assignment, enforceability, avoidance,
         novation or subordination of, in whole or in part, any of the
         Guaranteed Obligations, this Agreement or the other Note Documents with
         respect to the Company or any agreement or instrument relating thereto;

                  (ii) any change in the time, manner or place of payment of, or
         in any other term of, all or any of the Guaranteed Obligations, or any
         other amendment or waiver of or any consent to departure from this
         Agreement, including any increase in the Guaranteed Obligations
         resulting from the extension of additional credit to the Company or
         otherwise;

                  (iii) the failure to give notice to such Guarantor of the
         occurrence of a Default or Event of Default under the provisions of
         this Agreement or the other Note Documents;

                  (iv) any taking, exchange, release or nonperfection of any
         collateral, or any taking, release or amendment or waiver of or consent
         to departure from any other guaranty, for all or any of the Guaranteed
         Obligations;

                  (v) any manner of application of Collateral, or proceeds
         thereof, or payments and credits hereunder, to all or any of the
         Guaranteed Obligations, or any manner of sale or other disposition of
         any collateral or any other assets of the Company;

                  (vi) any failure, omission, delay by or inability on the part
         of the Trustee or the Holders to assert or exercise any right, power or
         remedy conferred on the Trustee or the Holders in this Agreement or the
         other Note Documents;

                  (vii) any change in the corporate structure, or termination,
         dissolution, consolidation or merger of the Company or any guarantor
         (including any other Guarantor) with or into any other entity, the
         voluntary or involuntary liquidation, dissolution, sale or other
         disposition of all or substantially all the assets of the Company or
         any guarantor (including any other Guarantor), the marshaling of the
         assets and liabilities of the Company or any guarantor (including any
         other Guarantor), the receivership, insolvency, bankruptcy, assignment
         for the benefit of creditors, reorganization, arrangement, composition
         with creditors, or readjustment of, or other similar proceedings
         affecting the Company or any guarantor (including any other Subsidiary
         Guarantor), or any of the assets of any of them, or except as set forth
         herein, any change in the ownership of such Guarantor;

                  (viii) the assignment of any right, title or interest of the
         Trustee or any Holder in this Agreement or the other Note Documents to
         any other Person;

                  (ix) any extension or renewal of any of the Guaranteed
         Obligations;

                  (x) any exchange, surrender, substitution, modification of any
         collateral security for the Guaranteed Obligations of any Guarantor or
         the release of any security held by any Holder or the Trustee for the
         Guaranteed Obligations of any Guarantor, or the failure of the Trustee
         or any other Person to take any steps to perfect

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         and maintain its security interest in, or to preserve its rights to,
         any security or collateral for the Guaranteed Obligations;

                  (xi) the election by, or on behalf of, any one or more of
         Holders and the Trustee, in any proceeding instituted under Chapter 11
         of the Bankruptcy Law;

                  (xii) any borrowing or grant of a security interest by the
         Company, as debtor-in-possession, under Section 364 of the Bankruptcy
         Law;

                  (xiii) the disallowance, under Section 502 of the Bankruptcy
         Law, of all or any portion of the claims of any of Holders or the
         Trustee for repayment of all or any part of the Guaranteed Obligations
         or any expenses described in this Section;

                  (xiv) any refusal of payment by the Trustee or any Holder, in
         whole or in part, from any obligor or guarantor in connection with any
         of the Guaranteed Obligations, whether or not with notice to, or
         further assent by, or any reservation of rights against, Company or any
         Guarantor;

                  (xv) any defense, setoff, cross claim or counterclaim which
         may at any time be available to or asserted by or against any Guarantor
         or Company; or

                  (xvi) any other event or circumstance (including any statute
         of limitations), whether foreseen or unforeseen and whether similar or
         dissimilar to any of the foregoing, that might otherwise constitute a
         defense available to, or a discharge of, the Company or a guarantor
         (including any other Guarantor), other than payment in full of the
         Guaranteed Obligations; it being the intent of such Guarantor that its
         obligations hereunder shall not be discharged except by payment of all
         amounts owing pursuant to this Agreement or the Notes and except as
         otherwise provided in Section 10.07 or Article VIII.

Each Guarantor hereby waives: (i) promptness, diligence, presentment, demand of
payment, (ii) filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any Guarantor, any other Subsidiary of the Company or
any other obligor under the Notes, (iii) any right to require a proceeding first
against the Company, any Guarantor, any other Subsidiary of the Company or any
other obligor under the Notes, (iv) protest, notice and all demands whatsoever,
(v) any requirement that the Trustee, any Holder or any other Person protect,
secure and perfect or insure any Lien or any property subject thereto or exhaust
any right to take any action against the Company or any other Person or any
Collateral, or obtain any relief pursuant to this Agreement or pursue any other
available remedy, (vi) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE NOTES, (vii)
any defense arising by reason of any claim or defense based upon an election of
remedies by the Trustee or any Holder which in any manner impairs, reduces,
releases or otherwise affects its subrogation, contribution or reimbursement
rights or other rights to proceed against the Company or any other Person or any
Collateral; (viii) any duty on the part of the Trustee or any Holder to disclose
to such Guarantor any matter, fact or thing relating to the business, operation
or condition of the Company and its assets now or hereafter known by the Trustee
or such Holder; (ix) all notices of the existence,

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creation or incurring of new or additional indebtedness, arising either from
additional financial accommodations extended to the Company or otherwise; and
(x) any defense based upon any requirement of law which provides that the
obligation of a surety must be neither large in amount nor in other respects
more burdensome than that of the principal.

         Each Guarantor covenants that this Note Guarantee shall not be
discharged except by complete performance of the obligations contained in the
Notes and this Agreement.

         If any Holder or the Trustee is required by any court or otherwise to
return to the Company, the Guarantors, any other Subsidiary of the Company, any
other obligor under the Notes, or any Custodian, trustee, liquidator or other
similar official acting in relation to either the Company or the Guarantors, any
amount paid by either to the Trustee or such Holder, this Note Guarantee, to the
extent theretofore discharged, shall be reinstated in full force and effect.

         Each Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. Each
Guarantor further agrees that, as between the Guarantors, on the one hand, and
the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article VI
hereof for the purposes of this Note Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (y) in the event of any declaration of
acceleration of such obligations as provided in Article VI hereof, such
obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantors for the purpose of this Note Guarantee. Each Guarantor
that makes payments under its Note Guarantee is entitled to a contribution from
each other Guarantor in a pro rata amount based on the net assets of each
Guarantor.

         Each Guarantor agrees that the obligations under this Agreement and the
Note Documents may be extended or renewed, in whole or in part, without notice
or further assent from such Guarantor and that such Guarantor will remain bound
under this Article X notwithstanding the extension or renewal of any such
obligation.

         10.02 Limitation on Guarantor Liability.

         Each Guarantor, and by its acceptance of Notes, each Holder, hereby
confirms that it is the intention of all such parties that the Note Guarantee of
such Guarantor not constitute a fraudulent transfer or conveyance for purposes
of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law to the extent applicable to any
Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders
and the Guarantors hereby irrevocably agree that the obligations of each
Guarantor under its Note Guarantee will be limited to the maximum amount as
will, after giving effect to all other contingent and fixed liabilities of such
Guarantor (including, without limitation, any guarantees under the New Credit
Agreement) and after giving effect to any collections from or payments made by
or on behalf of any other Guarantor in respect of the obligations of such other
Guarantor under its Note Guarantee or pursuant to its contribution obligations
under this Agreement, result in the obligations of such Guarantor under its Note
Guarantee not constituting a fraudulent conveyance or fraudulent transfer under
federal or state law.

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         10.03 Execution and Delivery of Note Guarantee.

         To evidence its Note Guarantee set forth in Section 10.01, each
Guarantor hereby agrees that a notation of such Note Guarantee substantially in
the form included in Exhibit C shall be endorsed by an Officer of such Guarantor
on each Note authenticated and delivered by the Trustee and that this Agreement
shall be executed on behalf of such Guarantor by an Officer.

         Each Guarantor hereby agrees that its Note Guarantee set forth in
Section 10.01 shall remain in full force and effect notwithstanding any failure
to endorse on each Note a notation of such Note Guarantee.

         If an Officer whose signature is on this Agreement or on the Note
Guarantee no longer holds that office at the time the Trustee authenticates the
Note on which a Note Guarantee is endorsed, the Note Guarantee shall be valid
nevertheless.

         The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Note Guarantee set forth
in this Agreement on behalf of the Guarantors.

         10.04 Guarantors May Consolidate, etc., on Certain Terms.

         Except as otherwise provided in Section 5.03, no Guarantor may
consolidate with or merge with or into (whether or not such Guarantor is the
surviving Person) another Person, whether or not affiliated with such Guarantor.

         In case of any such permitted consolidation, merger, sale or conveyance
and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee in form substantially similar to Exhibit D
hereof, of the Note Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of this Agreement to be
performed by the Guarantor, such successor Person shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. Such successor Person thereupon may cause to be signed
any or all of the Note Guarantees to be endorsed upon all of the Notes issuable
hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee. All the Note Guarantees so issued shall in all
respects have the same legal rank and benefit under this Agreement as the Note
Guarantees theretofore and thereafter issued in accordance with the terms of
this Agreement as though all of such Note Guarantees had been issued at the date
of the execution hereof.

         10.05 Rights under the Note Guarantees.

         No payment by any Guarantor pursuant to the provisions hereof shall
entitle such Guarantor to any payment out of any Collateral or give rise to any
claim of the Guarantors against the Trustee or any Holder.

         Each Guarantor waives notice of the issuance, sale and purchase of the
Notes and notice from the Trustee or the Holders from time to time of any of the
Notes of their acceptance and reliance on its Note Guarantee.

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         No set-off, counterclaim, reduction or diminution of any obligation or
any defense of any kind or nature (other than performance by the Guarantors of
their obligations hereunder) that any Guarantor may have or assert against the
Trustee or any Holder shall be available hereunder to such Guarantor.

         10.06 Primary Obligations.

         The Obligations of each Guarantor hereunder shall constitute a guaranty
of payment and not of collection. Each Guarantor agrees that it is directly
liable to each Holder hereunder, that the obligations of each Guarantor
hereunder are independent of the Obligations of the Company or any other
Guarantor, and that a separate action may be brought against each Guarantor,
whether such action is brought against the Company or any other Guarantor or
whether the Company or any other Guarantor is joined in such action. Each
Guarantor agrees that its liability hereunder shall be immediate and shall not
be contingent upon the exercise or enforcement by the Trustee or the Holders of
whatever remedies they may have against the Company or any other Guarantor or
the enforcement of any lien or realization upon any security the Trustee may at
any time possess. Each Guarantor agrees that any release that may be given by
the Trustee or the Holders to the Company or any other Guarantor shall not
release such Guarantor.

         10.07 Waiver of Subrogation and Contribution.

         Until this Agreement has been discharged, each Guarantor hereby
irrevocably waives any claim or other right which it may now or hereafter
acquire against the Company or any guarantor (including any other Guarantor)
that arise from the existence, payment, performance or enforcement of such
Guarantor's obligations under its Note Guarantee herein, including any right of
subrogation, reimbursement, exoneration, contribution, indemnification, any
right to participate in any claim or remedy of the Trustee or any Holder against
the Company or any guarantor or any Collateral which the Trustee or any Holder
now has or hereafter acquires, whether or not such claim, remedy or right arises
in equity, or under contract, statute or common law, including the right to take
or receive from the Company, directly or indirectly, in cash or other property
or by setoff or in any other manner, payment or security on account of such
claim or other rights. If any amount shall be paid to such Guarantor in
violation of the preceding sentence and the Guaranteed Obligations shall not
have been paid in full, such amount shall be deemed to have been paid to such
Guarantor for the benefit of, and held in trust for the benefit of, the Trustee
and the Holders, and shall forthwith be paid to the Trustee for the benefit of
the Holders to be credited and applied to the Guaranteed Obligations, whether
matured or unmatured, in accordance with the terms of this Agreement. Each
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Agreement and that the waivers
set forth in this Section 10.07 are knowingly made in contemplation of such
benefits.

         10.08 Cumulative Remedies.

         The remedies herein provided are cumulative and not exclusive of any
remedies provided by law. The Trustee and the Holders shall have all the rights
and remedies granted in this Agreement and the other Note Documents and
available at law or in equity, and these same

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rights and remedies may be pursued separately, successively or concurrently
against the Company or any Guarantor, or any Collateral.

         10.09 Successors and Assigns. This Article X shall be binding upon each
Guarantor and its successors and assigns and shall inure to the benefit of the
successors and assigns of the Trustee and the Holders and, in the event of any
transfer or assignment of rights by any Holder or the Trustee, the rights and
privileges conferred upon that party in this Agreement and in the other Note
Documents shall automatically extend to and be vested in such transferee or
assignee, all subject to the terms and conditions of this Agreement.

         10.10 Guarantee by Future Subsidiaries.

         Pursuant to Section 5.13 of this Agreement, any new Subsidiary formed
or acquired after the Issue Date shall become a Guarantor under this Agreement
and shall deliver all such Note Documents required pursuant to Section 5.13.

                                   ARTICLE XI

                                   COLLATERAL

         11.01 Delivery of Security Documents.

         (a) Not later than the Issue Date (except as otherwise set forth
below), the Company and the Guarantors party thereto shall have executed and
delivered to the Trustee for the benefit of the Holders:

                  (i) One or more Uniform Commercial Code filing authorization
         letters, duly executed by each Note Party or its representative,
         together with appropriate financing statements on Form UCC-1 duly filed
         in such office or offices as may be necessary to perfect the Trustee's
         Liens in and to the Collateral of such Note Party, and the Trustee
         shall have received confirmation of the filing of all such financing
         statements;

                  (ii) Each of the following documents, duly executed, and each
         such document shall be in full force and effect:

                           (1) The Collateral Access Agreements with respect to
         the locations set forth on Schedule 3.1(d) of the New Credit Agreement,

                           (2) the Control Agreement,

                           (3) the Copyright Security Agreement,

                           (4) the Environmental Indemnity Agreements,

                           (5) the Guarantor Security Agreement, which shall,
         among other things, grant the Trustee a Lien on the Reservation
         Management System,

                           (6) the Guaranty Agreement,

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                           (7) the Note Guarantees,

                           (8) the Patent and Trademark Security Agreement,

                           (9) the Quebec Security Documents, and

                           (10) the Stock Pledge Agreement;

                           (11) the Agency Letter;

                           (12) the Mortgages and related fixture filings; and

                           (13) the Mortgage Policies

                           (14) the security documents entered into by the
         Canadian subsidiaries.

                  The items set forth in this Section 11.01(a), and any other
         security agreement, instrument, filing, certificate or similar document
         entered into, now or in the future, by any Note Party in connection
         with this Agreement and accepted by the Trustee, are collectively
         referred to as the "Security Documents".

         (b) Within 30 days of the Issue Date, the Note Parties shall deliver to
the Trustee certified copies of the policies of insurance, together with the
endorsements thereto, as are required by Section 4.08, the form and substance of
which shall be reasonably satisfactory to the Trustee and its counsel.

         (c) Within 150 days after the Issue Date, the Company shall, or shall
cause the other Note Parties to:

                  (i) (1) register, or cause to be registered, with the State of
         Arizona each Vehicle (excluding any trailer) owned by any Borrower or
         any Guarantor (other than U-Haul Co. of Alaska or U-Haul of Hawaii,
         Inc.) and (2) obtain a new Certificate of Title for each such Vehicle
         registered pursuant to clause (1) naming (A) (x) U-Haul (Canada) as the
         registered owner of such Vehicles operated primarily in Canada, or (y)
         U-Haul Co. of Arizona, an Arizona corporation, as the registered owner
         of all other such Vehicles, (B) on new Certificates of Title obtained
         prior to May 21, 2003, "FOOTHILL CAPITAL CORP.", as the first priority
         lienholder thereon and "WELLS FARGO BANK, N.A., TRUSTEE", as second
         priority lienholder only to the Bank Lenders' Agent and (C) on new
         Certificates of Title obtained on or after May 21, 2003, "WELLS FARGO
         FOOTHILL, INC., AS AGENT" or, if space does or did not permit,
         "WELLSFARGO FOOTHILL AGENT", as the first priority lienholder thereon
         and "WELLS FARGO BANK, TRUSTEE," as the second priority lienholder only
         to the Bank Lenders' Agent;

                  (ii) (1) register, or cause to be registered, with the State
         of Alaska each Vehicle (excluding any trailer) owned by U-Haul Co. of
         Alaska, and (2) obtain a new Certificate of Title for each such Vehicle
         registered pursuant to clause (1) naming (A) U-Haul Co. of Alaska, an
         Alaskan corporation, as the registered owner and (B) "WELLS FARGO
         FOOTHILL, INC., AS AGENT" or, if space does or did not permit,

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<PAGE>

         "WELLSFARGO FOOTHILL AGENT", as the first priority lienholder thereon
         and "WELLS FARGO BANK, TRUSTEE," as the second priority lienholder only
         to the Bank Lenders' Agent;

                  (iii) (1) register, or cause to be registered, with the State
         of Hawaii each Vehicle (excluding any trailer) owned by U-Haul of
         Hawaii, Inc. and (2) obtain a new Certificate of Title for each such
         Vehicle registered pursuant to clause (1) naming (A) U-Haul of Hawaii,
         Inc., a Hawaiian corporation, as the registered owner and (B) "WELLS
         FARGO FOOTHILL, INC., AS AGENT" or, if space does or did not permit,
         "WELLSFARGO FOOTHILL AGENT", as the first priority lienholder thereon
         and "WELLS FARGO BANK, TRUSTEE," as the second priority lienholder only
         to the Bank Lenders' Agent; and

                  (iv) (1) deliver such original Certificates of Title after
         registration thereof to Roberta Holmes or Joan Gibson at the Company's
         location at 2727 North Central, Phoenix, Arizona 85004, (2) deliver to
         the Trustee evidence of approval from the State of Arizona for
         Borrowers to process and register the Certificates of Title, in form
         and substance reasonably satisfactory to the Trustee, and (3) deliver
         to the Trustee a fidelity insurance policy naming the Trustee as loss
         payee or bond endorsed to the Trustee, in each case in form and
         substance reasonably satisfactory to Trustee;

         The address of the Trustee on the Certificates of Title shall be the
Company's chief executive office located at 2727 North Central, Phoenix,
Arizona.

         If at least ninety percent (90%) of the Certificates of Title are not
registered in accordance with this Section 11.01(c) within 150 days after the
Issue Date, then the Company shall notify in writing the Trustee of such and the
applicable interest rate on the Notes shall automatically increase by
twenty-five (25) basis points retroactive to, and commencing on, the Issue Date,
and shall increase an additional twenty-five (25) basis points each succeeding
ninety-first day thereafter up to a maximum increase of one hundred (100) basis
points (i.e., an applicable interest rate on the Notes of ten percent (10%) per
annum) until such time as at least ninety percent (90%) of the Certificates of
Title are registered in accordance herewith. The increase in interest set forth
in this paragraph shall (1) occur automatically, (2) not require the Trustee to
declare a Default, give notice to any Note Party, or take any other action, (3)
not be considered an enforcement action or remedy, and (4) be in addition to,
and not in substitution of, any other Additional Interest, default interest or
higher interest rate due for overdue payments that may from time to time be due
and payable under this Agreement or under the Notes for any reason. Interest
accrued retroactively in accordance herewith shall be due and payable by the
Company on the 5th Business Day after the 150th day after the Issue Date without
notice or demand therefor.

         (d) Within 60 days of the Issue Date, Borrowers shall have received and
delivered to the Trustee zoning letters, in form and substance delivered to Bank
Lenders' Agent, duly executed by the appropriate Governmental Authorities, for
the Real Property Collateral located at the locations on Schedule 3.2(d) of the
New Credit Agreement;

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         (e) Within 60 days of the Issue Date, the Trustee shall have received
subordination, non-disturbance and attornment agreements duly executed by the
applicable Note Party and tenant in favor of the Trustee with respect to the
properties set forth on Schedule 3.2(e) of the New Credit Agreement, the form
and substance of which are reasonably satisfactory to the Trustee;

         (f) Promptly after delivering the Credit Card Agreements and the Cash
Management Agreements to the Bank Lenders' Agent, Borrowers shall deliver copies
of such agreements to the Trustee;

         (g) Borrower shall deliver a copy of Schedule 3.1(w) of the New Credit
Agreement setting forth the book values of all box-trucks, cargo vans and pickup
trucks owned by the Note Parties as of the Issue Date, that are or will be
subject to the Trustee's Lien, and promptly after any revision, supplement or
amendment thereof, Borrowers shall deliver a copy of such schedule as revised,
supplemented or amended to the Trustee; and

         (h) The Bank Lenders' Agent shall have received Uniform Commercial
Code, tax and judgment lien searches confirming the absence of, and mortgage
releases, termination statements and other release documents from JPMorgan and
any other Person necessary to release, any Liens on the Collateral, other than
the Permitted Liens, in accordance with the terms of the New Credit Agreement.

         11.02 Recording and Opinions.

         (a) Not later than the Issue Date, the Company and the Guarantors, at
their sole expense, will cause the Security Documents to be recorded, registered
and filed in such manner and in such places as may be necessary or as may be
reasonably requested by the Trustee to create or perfect the Liens in the
Collateral intended to be created by the Security Documents. Thereafter, until
the release of the Collateral as provided in Section 11.04 or in the Security
Documents, the Company and the Guarantors, at their sole expense, will cause the
Security Documents to be re-recorded, re-registered or refiled in such manner
and in such places as may be necessary or as may be reasonably requested by the
Trustee in order to fully preserve and protect the Liens in the Collateral
created by the Security Documents.

         (b) The Company shall furnish to the Trustee within three months after
the execution and delivery of this Agreement, an opinion or opinions of counsel
required under Section 314(b)(1) of the TIA, and within five Business Days after
each anniversary of the Issue Date, an opinion of counsel required under Section
314(b)(2) of the TIA.

         11.03 Possession and Use of Collateral.

         So long as no Event of Default has occurred and is continuing, the Note
Parties will have the right to remain in possession of and exercise complete
control over the Collateral, except for such of the Collateral as is required to
be in the possession of the Bank Lenders' Agent, the Trustee or the Bank
Lenders' Collateral Agent in order to perfect the Liens in such Collateral
granted by the Security Documents. Notwithstanding anything herein or in any
other Note Document to the contrary, in the event a Note Party is required
hereunder or under the other Note Documents to deliver possession or control of
any Collateral to the Trustee in order to perfect the

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Trustee's Lien thereon, such requirement may be satisfied by delivering such
possession or control, as of the Issue Date, to the Bank Lenders' Agent, and
after the Issue Date, to such collateral agent or bailee as the Trustee may from
time to time designate in writing; provided, however, that so long as Bank
Lenders' Collateral Agent serves as Trustee's bailee for perfection pursuant to
the Intercreditor Agreement, such bailee shall be the Bank Lenders' Collateral
Agent. The Note Parties and the Trustee agree to take such other reasonable
efforts as may be necessary or appropriate to perfect the Trustee's Liens with
respect to Collateral upon which Liens are perfected by means other than notice.

         11.04 Release and Disposition of Collateral.

         The Collateral shall be released from the Lien of the Security
Documents as expressly provided therein and the Trustee shall release any Lien
on any Collateral:

         (a) upon satisfaction and discharge of this Agreement as provided in
Article XII hereof;

         (b) upon Legal Defeasance or Covenant Defeasance as provided in Article
VIII hereof; provided, however, that any and all funds deposited for the benefit
of the Trustee on behalf of the Holders in connection with any Legal or Covenant
Defeasance shall remain subject to a Lien in favor of the Trustee, for the
benefit of the Holders,

         (c) constituting property being sold or disposed of if a release is
required or desirable in connection therewith and if the Company certifies to
the Trustee that the sale or disposition is permitted under Section 5.04 of this
Agreement or the other Note Documents (and the Trustee may rely conclusively on
any such certificate, without further inquiry),

         (d) constituting property in which no Note Party owned any interest at
the time the Trustee's Lien was granted or at any time thereafter, or

         (e) constituting property leased to a Note Party under a lease that has
expired or is terminated in a transaction permitted under this Agreement.

         Except as provided above or in the Intercreditor Agreement, the Trustee
will not execute and deliver a release of any Lien on any Collateral without the
prior written authorization of (i) if the release is of all or any substantial
portion of the Collateral (which shall be deemed to include sales or other
dispositions of Collateral with a Fair Market Valuation in excess of $35,000,000
over the Fair Market Valuation of the Collateral that may be sold or otherwise
disposed of under Section 5.04 hereof), all of the Holders of the Notes, or (ii)
otherwise, the Required Holders. Upon request by the Trustee or the Company at
any time, the Holders of the Notes will confirm in writing Trustee's authority
to release any such Liens on particular types or items of Collateral pursuant to
this Section 11.04; provided, however, that (1) the Trustee shall not be
required to execute any document necessary to evidence such release on terms
that, in Trustee's opinion, would expose the Trustee to liability or create any
obligation or entail any consequence other than the release of such Lien without
recourse, representation, or warranty, and (2) such release shall not in any
manner discharge, affect, or impair the Obligations or any Liens (other than
those expressly being released) upon (or obligations of Note Parties in respect
of) all interests retained by Note Parties, including, the proceeds of any sale,
all of which shall continue to constitute part of the Collateral.

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         The Holders hereby irrevocably appoint and authorize the Collateral
Trustee to act as collateral agent hereunder and under the Security Documents
with such powers as are delegated to the Trustee (with respect to the
Collateral) and/or the Collateral Trustee by the express terms of this Agreement
and the Security Documents, together with such other powers as are incidental
thereto.

         The Note Parties shall take all necessary action with respect to the
recording or filing of the Security Documents, all necessary Uniform Commercial
Code financing, amendment and/or continuation statements, and any other
instruments of further assurance, and for taking all other actions necessary to
create and maintain the validity, perfection and priority of Trustee's Liens
(second in priority only to the first priority security interests granted to the
Bank Lenders' Agent pursuant to the New Credit Agreement and the other Loan
Documents (as defined in the New Credit Agreement)). If the Collateral Trustee
shall become aware of any such failure to maintain the validity, perfection and
priority of the Trustee's Liens, the Collateral Trustee shall be responsible for
any required recording or filing of the Security Documents, all necessary
Uniform Commercial Code financing, amendment and/or continuation statements, and
any other instruments of further assurance, and for taking all other actions
described in this Agreement as being advisable to remedy any such failure to
maintain the validity, perfection and priority of the Trustee's Liens (second in
priority only to the first priority security interests granted to the Bank
Lenders' Agent pursuant to the New Credit Agreement and the other Loan Documents
(as defined in the New Credit Agreement)). The Trustee and Collateral Trustee
shall not be responsible for seeing that any of the Collateral is adequately
insured, or for the sufficiency of the security for the Notes; provided,
however, that if a Responsible Officer of the Trustee has actual knowledge that
the Collateral is not adequately insured, it shall notify the appropriate Note
Party of such inadequacy and its obligation to adequately insure such Collateral
in accordance with this Agreement and the Security Documents.

         The Collateral Trustee (which term as used in this Agreement shall
include reference to its affiliates and its own and its affiliates' officers,
directors, employees and agents acting in capacities on behalf of the Collateral
Trustee): (i) shall have no duties or responsibilities except those expressly
set forth or directed in connection with this Agreement and the Security
Documents, (ii) shall not be responsible to any Holder for any recitals,
statements, representations or warranties contained in this Agreement or the
other Note Documents or in any certificate or other document received by it
under this Agreement or other Note Documents, or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
other Note Documents or any other Person to perform any of its obligations
hereunder or under the Note Documents and (iii) shall not be responsible to any
Holder for any action taken or omitted to be taken by it hereunder or under any
Note Document, except for its own negligence or willful misconduct. The
Collateral Trustee's sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession shall be to deal with
it in the same manner as the Collateral Trustee deals with similar property for
its own account. The Collateral Trustee may employ agents and attorneys-in-fact
selected by it in good faith. The Collateral Trustee shall be entitled to rely
upon any certification, notice or other communication (including any thereof, by
telephone, telex, telegram or cable) believed by it in good faith to be genuine
and correct and to have been signed or sent by or on behalf of the proper Person
or Persons, and upon advice and statements of legal counsel, independent
accountants and other experts selected by the Collateral Trustee.

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         Each Holder of the Notes by its acceptance thereof (and each subsequent
holder of any of the Notes by its acceptance thereof), agrees that it has not
relied upon the Trustee or Collateral Trustee in making its own credit analysis
and evaluation of the Note Parties and filings relating thereto and its own
decision to acquire the interest in one or more of the Notes and that it will,
independently and without reliance upon the Trustee or Collateral Trustee and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own analysis and decisions with respect to any
purchase or sale of the Notes. Except as expressly required of each of Trustee
and Collateral Trustee hereunder or under the other Note Documents, neither the
Trustee nor the Collateral Trustee shall be required to keep itself informed as
to the performance or observance by the Note Parties of this Agreement or any
other Note Document or to inspect the properties or books of any Person. Except
for notices, reports and other documents required to be provided upon request of
a Holder hereunder, the Trustee and Collateral Trustee shall not have any duty
or responsibility to provide the Holders with any credit or other information
concerning the affairs, financing condition or business of the Note Parties (or
any of their respective subsidiaries or other affiliates) which may come into
the possession of the Trustee or Collateral Trustee.

         The Company and each other Note Party will pay upon demand to the
Collateral Trustee the amount of any and all reasonable out-of-pocket expenses,
including the reasonable fees and expenses of its counsel (and any local
counsel) and of any experts and agents, which the Collateral Trustee may incur
in connection with (i) the administration of the Security Documents, (ii) the
custody or preservation of, or the sale, collection from, or other realization
upon, any of the Collateral, (iii) the exercise or enforcement (whether through
negotiations, legal proceedings or otherwise) of any of the rights of the
Collateral Trustee under this Agreement or the Security Documents (iv) the
failure by any Note Party or any Person (other than the Trustee or Collateral
Trustee) to perform or observe any of the provisions of this Agreement or the
Security Documents.

         Notwithstanding any provision in the Note Documents to the contrary,
the Holders of the Notes hereby irrevocably authorize the Trustee, and the
Trustee hereby agrees that it shall, upon the written request of Company,
execute, have acknowledged as appropriate, and deliver to Company such release
documents as are reasonably necessary or appropriate under the circumstances to
effect the release of any Collateral to the extent the sale of such Collateral
is permitted under this Agreement. The Trustee shall deliver any such release
documents to Company (or, if applicable, any closing attorney) to hold in escrow
pending the closing of the related transaction. In the event the closing of such
transaction does not occur, Company shall promptly return to the Trustee the
release documents executed and delivered by the Trustee.

         To the extent applicable, the Company shall cause TIA Section 314(d) to
be complied with in connection with any release of Collateral from the Liens of
the Security Documents. Any certificate or opinion required by TIA Section
314(d) may be made by means of an Officer's Certificate, except in cases in
which TIA Section 314(d) requires that such certificate or opinion be made by an
independent Person.

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         11.05 Intercreditor Agreement.

         Not later than the Issue Date, the Trustee and the Bank Lenders'
Collateral Agent, shall have entered into the Intercreditor Agreement. Each
Holder agrees to be bound by the terms of the Intercreditor Agreement. The Note
Parties are not a party to, nor beneficiary of, such Intercreditor Agreement,
and nothing in this paragraph nor the Intercreditor Agreement shall impair,
limit or otherwise affect the grant of security interest herein or any of the
Note Parties duties or obligations under the Note Documents.

         11.06 Grant of Security Interest.

         Each Note Party hereby grants to the Trustee, for the benefit of the
Holders, a continuing security interest (second only to the first priority
security interests granted to Bank Lenders' Agent pursuant to the New Credit
Agreement and the other Loan Documents (as defined in the New Credit Agreement))
in all of its right, title, and interest in all of its currently existing and
hereafter acquired or arising assets (other than Excluded Assets), including
without limitation, its right, title and interest in and to Personal Property
Collateral, in order to secure prompt repayment of any and all of the
Obligations hereunder in accordance with the terms and conditions of the Note
Documents and in order to secure prompt performance by the Note Parties of each
of their covenants and duties under the Note Documents. The Trustee's Liens in
and to such assets, including, without limitation, the Personal Property
Collateral, shall attach to all such assets without further act on the part of
the Trustee or the Note Parties. Anything contained in this Agreement or any of
the Note Document to the contrary notwithstanding, except for Permitted
Dispositions, the Note Parties have no authority, express or implied, to dispose
of any item or portion of such assets.

         11.07 Negotiable Collateral and Chattel Paper.

         Each Note Party covenants and agrees with Agent that from and after the
Closing Date and until the date of release of the Collateral in accordance with
Section 11.04 hereof:

         (a) In the event that any Collateral, including proceeds, is evidenced
by or consists of Negotiable Collateral of any Note Party, and if and to the
extent that perfection of priority of the Trustee's security interest with
respect to such Collateral is dependent on or enhanced by possession, the
applicable Note Party immediately shall endorse and deliver physical possession
of such Negotiable Collateral to the Trustee;

         (b) Upon request by the Trustee, each Note Party shall take all steps
reasonably necessary to grant the Trustee control of all electronic Chattel
Paper of such Note Party in accordance with the Code and all "transferable
records as defined in each of the Uniform Electronic Transactions Act and the
Electronic Signatures in Global and National Commerce Act to the extent that
such steps do not conflict with the terms and provisions of the New Credit
Agreement;

         (c) In the event any Note Party, with Trustee's consent, retains
possession of any Chattel Paper or instruments otherwise required to be endorsed
and delivered to the Trustee pursuant to Section 11.07(a), all of such Chattel
Paper and instruments shall be marked with the following legend: "This writing
and the obligations evidenced or secured thereby are subject to

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the security interest (second in priority only to the first priority security
interests granted to Wells Fargo Foothill, Inc., as agent, pursuant to that Loan
and Security Agreement dated as of March 1, 2004) of Wells Fargo Bank, N.A., as
the Trustee under the Indenture, dated as of March 1, 2004, for the 9% Second
Lien Senior Secured Notes Due 2009".

         11.08 Collection of Accounts, General Intangibles, and Negotiable
               Collateral.

         At any time after the occurrence and during the continuation of an
Event of Default, the Trustee or the Trustee's designee may (a) notify Account
Debtors of Note Parties that the Note Parties' Accounts, Chattel Paper, or
General Intangibles (other than the Excluded Assets) have been assigned to the
Trustee or that the Trustee has a security interest therein, or (b) collect the
Note Parties' Accounts, Chattel Paper, or General Intangibles (other than the
Excluded Assets) directly and charge the collection costs and expenses to the
Note Parties. Each Note Party agrees that it will hold in trust for the Trustee,
for the benefit of the Holders, any Collections that it receives and immediately
will deliver said Collections to the Trustee in their original form as received
by the applicable Note Party.

         11.09 Delivery of Additional Documentation Required.

         Each Note Party hereby authorizes the Trustee to file, transmit, or
communicate, as applicable, Uniform Commercial Code financing statements and
amendments describing the Collateral as "all personal property of debtor" or
"all assets of debtor" or words of similar effect in order to perfect the
Trustee's Liens on the Collateral without any Note Party's signature, to the
extent permitted by Applicable Law; provided, however, the Trustee shall clearly
identify Excluded Assets as excepted items. Notwithstanding the foregoing, at
any time upon the request of the Trustee, the Note Parties shall execute and
deliver to the Trustee any and all financing statements, original financing
statements in lieu of continuation statements, fixture filings, security
agreements, pledges, assignments, endorsements of certificates of title,
supplements, and all other documents (the "Additional Documents") upon which
Note Party's signature may be required to perfect and continue perfection of or
better perfect the Trustee Liens in the Collateral (whether now owned or
hereafter arising or acquired), to create and perfect Liens in favor of the
Trustee in any Real Property (whether now owned or hereafter arising or
acquired), and in order to fully consummate all of the transactions contemplated
hereby and under the other Note Documents. To the maximum extent permitted by
Applicable Law, each Note Party authorizes the Trustee to execute any such
Additional Documents in the applicable Note Party's name and authorizes the
Trustee to file such executed Additional Documents in any appropriate filing
office; provided, however, that the failure by the Trustee to so provide such
filings shall not affect the authorizations herein. Each Note Party also hereby
ratifies its authorization for the Trustee to have filed in any jurisdiction any
Uniform Commercial Code financing statements or amendments thereto if filed
prior to the Issue Date. No Note Party shall terminate, amend or file a
correction statement with respect to any Uniform Commercial Code financing
statement filed pursuant to this Section 11.09 without the Trustee's prior
written consent. In addition, on a quarterly basis as the Trustee shall require,
the Note Parties shall (a) cause all patents, copyrights, and trademarks
acquired or generated by the Note Parties that are not already the subject of a
registration with the appropriate filing office (or an application therefor
diligently prosecuted) to be registered with such appropriate filing office in a
manner sufficient to impart constructive notice of the Note Parties' ownership
thereof, and (b) cause to be prepared, executed, and

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delivered to the Trustee supplemental schedules to the applicable Note Documents
to identify such patents, copyrights, and trademarks as being subject to the
security interests created thereunder. The Company shall provide the Trustee
with notice that any Note Party has made a Permitted Investment of the type
described in clause (e), (g) or (k) of the definition of "Permitted Investment"
promptly, but in any event within 5 Business Days, following the consummation
thereof and, upon the request of the Trustee, the relevant Note Party shall
execute and deliver (or cause to be executed and delivered to the Trustee) any
and all Additional Documents requested by the Trustee to perfect the Trustee's
Liens in such Permitted Investment.

         11.10 Power of Attorney.

         Each Note Party hereby irrevocably makes, constitutes, and appoints the
Trustee (and any of the Trustee's officers, employees, or agents designated by
the Trustee) as such Note Party's true and lawful attorney, with power to (a) if
such Note Party refuses to execute and deliver, or fails timely to execute and
deliver, any of the documents described in Section 11.09, (b) at any time that
an Event of Default has occurred and is continuing, sign such Note Party's name
on any invoice or bill of lading relating to the Collateral, drafts against
Account Debtors of such Note Party, or notices to such Account Debtors, (c) send
requests for verification of such Note Party's Accounts, (d) endorse such Note
Party's name on any Collection item that may come into the Trustee' possession,
(e) at any time that an Event of Default has occurred and is continuing, make,
settle, and adjust all claims under such Note Party's policies of insurance and
make all determinations and decisions with respect to such policies of
insurance, and (f) at any time that an Event of Default has occurred and is
continuing, settle and adjust disputes and claims respecting such Note Party's
Accounts, Chattel Paper, or General Intangibles other than the Excluded Assets
directly with Account Debtors of such Note Party, for amounts and upon terms
that the Trustee determines to be reasonable, and the Trustee may cause to be
executed and delivered any documents and releases that the Trustee determines to
be necessary. The appointment of the Trustee as each Note Party's attorney, and
each and every one of its rights and powers, being coupled with an interest, is
irrevocable until all of the Obligations under the Note Documents have been
fully and finally repaid and performed.

         11.11 Control Agreements.

         Each Note Party agrees that it will not transfer assets out of any
Securities Accounts other than as permitted under Section 5.18 and, if to
another securities intermediary, unless each of the applicable Note Party, the
Trustee, and the substitute securities intermediary have entered into a Control
Agreement. No arrangement contemplated hereby or by any Control Agreement in
respect of any Securities Accounts or other Investment Property of the Note
Parties shall be modified by the Note Parties without the prior written consent
of the Trustee. Upon the occurrence and during the continuance of a Default or
Event of Default, the Trustee may notify any securities intermediary to
liquidate the applicable Securities Account or any related Investment Property
maintained or held thereby and remit the proceeds thereof to the Trustee.

         11.12 Commercial Tort Claims.

         Borrowers shall promptly notify the Trustee in writing in the event any
Note Party shall incur or otherwise obtain a Commercial Tort Claim in excess of
$100,000 after the Issue Date

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against any third party and, upon the request of the Trustee, shall promptly
authorize the filing of additional Uniform Commercial financing statements or
amendments to existing Uniform Commercial Code financing statements, and do such
other acts or things deemed necessary or desirable by the Trustee to grant the
Trustee a perfected security interest (second in priority only to the first
priority security interests granted to Bank Lenders' Agent pursuant to the New
Credit Agreement and the other Loan Documents (as defined in the New Credit
Agreement)) in any such Commercial Tort Claim, including, without limitation
executing an assignment of such Commercial Tort Claim.

         11.13 Grants, Rights and Remedies.

         The Liens and security interests granted by each Note Party to the
Trustee by and pursuant to Section 11.06 hereof may be independently granted by
the Note Documents concurrently or hereafter entered into. This Agreement and
such other Note Documents supplement each other, and the grants, priorities,
rights and remedies of the Trustee hereunder and thereunder are cumulative. Each
Note Party agrees that the rights of the Trustee under this Agreement, any other
Note Document or any other contract or agreement now or hereafter in existence
between the Trustee and any Note Party and the other obligors hereunder or
thereunder, or any of them, shall be cumulative, and that the Trustee may from
time to time exercise such rights and such remedies as such Person or Persons
may have hereunder and thereunder and under the laws of the United States or any
state, as applicable, in the manner and at the time that the Person or Persons
in its or their sole discretion desire, subject to the terms of such agreements.
Each Note Party further expressly agrees that the Trustee shall in no event be
under any obligation to resort to any Personal Property Collateral prior to
exercising any other rights that the Trustee may have against such Note Party or
its property, nor shall the Trustee be obliged to resort to any other collateral
or security for the Obligations of the Note Parties under the Note Documents
prior to any exercise of the Trustee's rights against such Note Party and its
property hereunder. No exercise by the Trustee of one right or remedy shall be
deemed an election, and (except as provided in Section 9.07(d)) no waiver by the
Trustee of any Event of Default shall be deemed a continuing waiver. No delay by
the Trustee shall constitute a waiver, election, or acquiescence by it.

         Without limitation of the foregoing, upon the occurrence and during the
continuation of an Event of Default, the Trustee is hereby authorized to:

         (a) Settle or adjust disputes and claims directly with the Note
Parties' Account Debtors for amounts and upon terms which the Trustee reasonably
considers advisable, and, in such cases, the Trustee will credit toward the
payment of the Notes only the net amounts received by the Trustee in payment of
such disputed Accounts after deducting all of its expenses incurred or expended
in accordance with the terms of this Agreement in connection therewith;

         (b) Cause each Note Party to hold all returned Inventory in trust for
the Holders, segregate all returned Inventory from all other assets of such Note
Party or in such Note Party's possession and conspicuously label said returned
Inventory as the property of the Holders;

         (c) Without notice to or demand upon each Note Party, make such
payments and do such acts as the Trustee considers necessary or reasonable to
protect its security interests in the

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Personal Property Collateral. Each Note Party agrees to assemble the Personal
Property Collateral if the Trustee so requires, and to make the Personal
Property Collateral available to the Trustee at a place that the Trustee may
designate that is reasonably convenient to both parties. Each Note Party
authorizes the Trustee to enter the premises where the Personal Property
Collateral is located, to take and maintain possession of the Personal Property
Collateral, or any part of it, and to pay, purchase, contest, or compromise any
Lien that in the Trustee's determination appears to conflict with the Liens of
the Trustee and to pay all expenses incurred in connection therewith. With
respect to any of any Note Party's owned or leased premises, each Note Party
hereby grants the Trustee a license to enter into possession of such premises
and to occupy the same, without charge, in order to exercise any of the
Trustee's or the Holders' rights or remedies provided herein, at law, in equity,
or otherwise;

         (d) Without notice to any Note Party (such notice being expressly
waived), and without constituting a retention of any collateral in full or
partial satisfaction of an obligation (within the meaning of the Code), set off
and apply to the Obligations of the Note Parties under the Note Documents any
and all (i) balances and deposits of such Note Party held by the Holders or the
Trustee for the benefit of the Holders, or (ii) Indebtedness at any time owing
to or for the credit or the account of such Note Party held by the Holders or
the Trustee for the benefit of the Holders;

         (e) Hold, as cash collateral, any and all balances and deposits of any
Note Party held by the Holders or the Trustee for the benefit of the Holders,
and any amounts received in the Cash Management Accounts (as defined in the New
Credit Agreement), to secure the full and final repayment of all of the
Obligations of the Note Parties under the Note Documents;

         (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare
for sale, advertise for sale, and sell (in the manner provided for herein) the
Personal Property Collateral. Each Note Party hereby grants to the Trustee a
license or other right to use, without charge, such Note Party's labels,
patents, copyrights, trade secrets, trade names, trademarks, service marks, and
advertising matter, or any property of a similar nature, as it pertains to the
Personal Property Collateral, in completing production of, advertising for sale,
and selling any Personal Property Collateral and such Note Party's rights under
all licenses and all franchise agreements shall inure to the Holders' benefit;

         (g) Sell the Personal Property Collateral at either a public or private
sale, or both, by way of one or more contracts or transactions, for cash or on
terms, in such manner and at such places (including each Note Party's premises)
as the Trustee determines is commercially reasonable and it is not necessary
that the Personal Property Collateral be present at any such sale;

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         (h) Give notice of the disposition of the Personal Property Collateral
as follows:

                  (i) the Trustee shall give each Note Party a notice in writing
         of the time and place of public sale, or, if the sale is a private sale
         or some other disposition other than a public sale is to be made of the
         Personal Property Collateral, the time on or after which the private
         sale or other disposition is to be made;

                  (ii) the notice shall be personally delivered or mailed,
         postage prepaid, to each Note Party as provided in Section 13.02, at
         least 10 days before the earliest time of disposition set forth in the
         notice; no notice needs to be given prior to the disposition of any
         portion of the Personal Property Collateral that is perishable or
         threatens to decline speedily in value or that is of a type customarily
         sold on a recognized market;

The Note Parties hereby acknowledge and agree that the notice described in this
Section 11.13(h), when given, shall constitute a reasonable "authenticated
notification of disposition" within the meaning of Section 9-611 of the Code, as
in effect from time to time in any jurisdiction.

         (i) Credit bid and purchase at any public sale;

         (j) Seek the appointment of a receiver or keeper to take possession of
all or any portion of the Personal Property Collateral or to operate same and,
to the maximum extent permitted by law, may seek the appointment of such a
receiver without the requirement of prior notice or a hearing;

         (k) Have the right, in connection with the issuance of any order for
relief in a bankruptcy proceeding, to petition the bankruptcy court for the
transfer of control or assignment of the licenses to a receiver, trustee,
transferee, or similar official or to any purchaser of the Personal Property
Collateral pursuant to any public or private sale, foreclosure or other exercise
of remedies available to the Trustee, all as permitted by applicable law;

         (l) Cause any Note Party to exercise any purchase right with respect to
a Vehicle that such Note Party may have at the termination of any TRAC Lease
Transaction if the Trustee determines, in its Permitted Discretion, that such
Note Party has equity in such Vehicle; and

         (m) Have all other rights and remedies available at law or in equity or
pursuant to any other Note Document.

         11.14 Survival.

         The Liens and security interests granted to the Trustee (for the
benefit of the Holders), the priority of such Liens and security interests, and
the administrative priorities and other rights and remedies granted to the
Trustee pursuant to this Agreement and the other Note Documents (specifically
including but not limited to the existence, perfection and priority of the Liens
and security interest provided herein and therein) shall not be modified,
altered or impaired in any manner by any other financing or extension of credit
or incurrence of debt by any Note Party or by any other act or omission
whatsoever.

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         11.15 Authorization of Actions to be Taken by the Trustee Under the
               Collateral Documents.

         The Trustee may, in its sole discretion and without the consent of the
Holders, take all actions or direct, on behalf of the Holders, the Collateral
Trustee or any Co-Collateral Trustee or separate Collateral Trustee to take all
actions it deems necessary or appropriate to (a) enforce any of the terms of the
Security Documents and (b) collect and receive any and all amounts payable in
respect of the obligations of the company under this Article XI. Subject to the
provisions of this Agreement and the other Security Documents, the Trustee shall
have power to institute and to maintain such suits and proceedings as it may
deem expedient to prevent any impairment of the Collateral by any acts which may
be unlawful or in violation of the Security Documents or this Agreement, and
such suits and proceedings as it may deem expedient to preserve or protect its
interest and the interests of the Holders in the Collateral (including power to
institute and maintain suits or proceedings to restrain the enforcement of or
compliance with any legislative or other governmental enactment, rule or order
that may be unconstitutional or otherwise invalid if the enforcement of or
compliance with, such enactment, rule or order would impair the security
interest hereunder or be prejudicial to the interests of the Holders or of the
Collateral Trustee in any such capacity).

         11.16 Quebec Security.

         For greater certainty, and without limiting the powers of the Trustee
or any other Person acting as trustee or agent for the Holders hereunder or
under any of the Note Documents, each Note Party hereby acknowledges that, for
purposes of holding any Liens, including hypothecs, granted or to be granted by
any Note Party on movable or immovable property pursuant to the laws of the
Province of Quebec to secure obligations of any Note Party under any bond issued
by any Note Party, the Trustee shall be the holder of an irrevocable power of
attorney (fonde de pouvoir within the meaning of Article 2692 of the Civil Code
of Quebec) (the "Fonde de pouvoir") for and on behalf of all present and future
Holders. Each Holder hereby (i) irrevocably constitutes, to the extent
necessary, the Trustee as the Fonde de pouvoir in order to hold Liens, including
hypothecs, granted or to be granted by any Note Party on movable and immovable
property pursuant to the laws of the Province of Quebec to secure obligations of
any Note Party under any bond issued by any Note Party; and (ii) appoints and
agrees that the Trustee, acting as trustee for the Holders, may act as the
bondholder and mandatory with respect to any bond that may be issued and pledged
from time to time for the benefit of the Holders. Without limitation to the
foregoing, to the extent that any Person becomes a Holder by accepting,
purchasing or acquiring a Note, such Person shall be automatically deemed to
have ratified and consented to the power of attorney and appointment constituted
in this Section 11.16.

         Notwithstanding the provisions of Section 32 of the An Act respecting
the special powers of legal persons (Quebec), the Trustee may purchase, acquire
and be the holder of any bond issued by any Note Party (i.e. the Fonde de
pouvoir may acquire and hold the first bond issued under any deed of hypothec
granted by any Note Party). Each Note Party hereby acknowledges that any such
bond shall constitute a title of indebtedness, as such term is used in Article
2692 of the Civil Code of Quebec.

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         For greater certainty, the trustee herein appointed as Fonde de
pouvoir, bondholder and mandatary shall have the same rights, powers and
immunities as the Trustee as stipulated in Article VII, which shall apply
mutatis mutandis. Without limitation, the provisions of section 7.08 hereunder
shall apply mutatis mutandis to the resignation and appointment of a successor
to the Trustee acting as Fonde de pouvoir, bondholder and mandatary.

         11.17 Right to Inspect.

         (a) Borrowers acknowledge and agree that, at the expense of Borrowers,
the Trustee (through its officers, employees, or agents) shall have the right
to, and at the request of the Required Holders, shall, from time to time
hereafter, to inspect Borrowers' Books and records (including access to the
Reservation Management System upon the Trustee's request) and to check, test,
and appraise the Collateral in order to verify Borrowers' financial condition or
the amount, quality, value, condition of, or any other matter relating to, the
Collateral; provided, however, that so long as an Event of Default does not
exist, any such inspection shall occur only during normal business hours. The
Trustee may, and at the request of the Required Holders shall, request copies of
and obtain any and all appraisals required by the Bank Lenders' Agent under the
New Credit Agreement.

         (b) Borrowers acknowledge and agree that, at the expense of Borrowers,
the Trustee shall have the right to conduct, on a quarterly basis or more
frequently if an Event of Default exists, an independent inspection of 5% of the
Certificates of Title then on hand with any appropriate Governmental Authority
in order to verify the accuracy and completeness of any information contained on
such Certificates of Title and compliance with this Agreement; provided,
however, that if the Trustee determines, in its Permitted Discretion, that there
are significant errors or discrepancies in the Certificates of Title or
non-compliance with this Agreement, the Trustee and the Holders shall, at the
expense of Borrowers, have the right to conduct an independent inspection of all
of Certificates of Title or such lesser amount as may be determined by the
Trustee in its Permitted Discretion. If the Trustee elects to inspect 5% of the
Certificates of Title during any quarter (other than during an Event of Default)
as provided above, prior to such inspection the Trustee shall provide written
notice of such election to the Bank Lenders' Agent, and if the Bank Lenders'
Agent also elects to inspect 5% of the Certificates of Title during the same
inspection period as provided under the New Credit Agreement, then the Trustee
shall only inspect those Certificates of Title as inspected by the Bank Lenders'
Agent. The Note Parties shall deliver to the Trustee (or its designees) any
power of attorney or other document that may be requested by the Trustee or
required by such Governmental Authority in connection therewith. Borrowers
acknowledge that such inspection may be conducted by employees of the Trustee or
any third party retained by the Trustee for such purposes.

                                      119
<PAGE>

                                  ARTICLE XII

                           SATISFACTION AND DISCHARGE

         12.01 Satisfaction and Discharge.

         This Agreement shall be discharged and will cease to be of further
effect (except as to rights of registration of transfer or exchange of Notes
which shall survive until all Notes have been canceled) as to all outstanding
Notes issued hereunder, when either:

         (a) all the Notes that have been authenticated and delivered (except
lost, stolen or destroyed Notes which have been replaced or paid and Notes for
whose payment money has been deposited in trust or segregated and held in trust
by the Company and thereafter repaid to the Company or discharged from this
trust) have been delivered to the Trustee for cancellation, or

         (b)      (i) all Notes not delivered to the Trustee for cancellation
otherwise have become due and payable or have been called for redemption
pursuant to Section 3.07 hereof, and the Company has irrevocably deposited or
caused to be deposited with the Trustee trust funds in trust in an amount of
money sufficient, in the opinion of a nationally recognized firm of independent
public accountants selected and paid for by the Company to pay and discharge the
entire Indebtedness (including all principal and accrued interest, premiums,
fees and Additional Interest) on the Notes not theretofore delivered to the
Trustee for cancellation,

                  (ii) the Company has paid all sums payable by it under this
         Agreement,

                  (iii) the Company has delivered irrevocable instructions to
         the Trustee to apply the deposited money toward the payment of the
         Notes at maturity or on the date of redemption, as the case may be,

                  (iv) the Holders have a valid, perfected, exclusive first
         priority security interest in such deposited money,

                  (v) the Trustee or Paying Agent has not received instructions
         from the Company or an Affiliate or subsidiary thereof, not to make
         such payment or is not prohibited from paying such payments to the
         Holders of the Notes pursuant to this Agreement and the Notes, and

                  (vi) the Company shall have delivered an Officer's Certificate
         and an opinion of counsel to the Trustee stating that all such
         obligations of the Company and the Guarantors have been performed or
         satisfied and that all of the conditions precedent to satisfaction and
         discharge have been satisfied.

         12.02 Application of Trust Money.

         Subject to the provisions of Section 8.06, all money deposited with the
Trustee pursuant to Section 12.01 shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Agreement, to the payment,
either directly or through any Paying Agent

                                      120
<PAGE>

(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, fees
or Additional Interest, if any) and interest for whose payment such money has
been deposited with the Trustee; but such money need not be segregated from
other funds except to the extent required by law.

         If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with this Section 12.02 by reason of any
legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company's and any Guarantor's obligations under this Agreement
and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 12.01; provided, however, that if the Company has made any
payment of principal of, premium, fees or interest on any Notes because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money or U.S.
Government Obligations held by the Trustee or Paying Agent.

                                  ARTICLE XIII

                                  MISCELLANEOUS

         13.01 Trust Indenture Act Controls.

         If any provision of this Agreement limits, qualifies or conflicts with
the duties imposed by TIA Section 318(c), the imposed duties shall control.

         13.02 Notices.

         Any notice or communication by the Company, any Guarantor or the
Trustee to the others is duly given if in writing and delivered in Person or
mailed by first class mail (registered or certified, return receipt requested),
telex, telecopier or overnight air courier guaranteeing next day delivery, to
the others' address:

         If to the Company and/or any Guarantor:

                  AMERCO
                  1325 Airmotive Way, Suite 100
                  Reno, Nevada  89502-3239
                  Telecopier No.:  (775) 688-6338
                  Attention: Assistant Treasurer

         With a copy to:

                  U-Haul International, Inc.
                  2727 North Central Avenue
                  Phoenix, Arizona  85004
                  Telecopier No.: (602) 263-6173
                  Attn:  General Counsel

                                      121
<PAGE>

         and

                  Squire, Sanders & Dempsey L.L.P.
                  Two Renaissance Square
                  40 North Central Avenue
                  Suite 2700
                  Phoenix, Arizona  85004
                  Telecopier No.:  (602) 253-8129
                  Attention:  Christopher D. Johnson, Esq.

         If to the Trustee:

                  Wells Fargo Bank, N.A.
                  Corporate Trust Services
                  Sixth & Marquette; N9303-120
                  Minneapolis, MN  55479
                  Telecopier:  (612) 667-9825
                  Attention:  Corporate Trust Administration:  AMERCO Notes

         The Company, any Guarantor or the Trustee, by notice to the others may
designate additional or different addresses for subsequent notices or
communications.

         All notices and communications (other than those sent to Holders) shall
be deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if telecopied; and the next
Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery.

         Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. Any notice or communication shall also be so mailed to any
Person described in TIA Section 313(c), to the extent required by the TIA.
Failure to mail a notice or communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

         If a notice or communication is mailed in the manner provided above
within the time prescribed, it is duly given, whether or not the addressee
receives it.

         If the Company mails a notice or communication to Holders, it shall
mail a copy to the Trustee and each Agent at the same time.

         13.03 Communication by Holders of Notes with Other Holders of Notes.

         Holders may communicate pursuant to TIA Section 312(b) with other
Holders with respect to their rights under this Agreement or the Notes. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
TIA Section 312(c).

                                      122
<PAGE>

         13.04 Certificate and Opinion as to Conditions Precedent.

         Upon any request or application by the Company to the Trustee to take
any action under this Agreement, the Company shall furnish to the Trustee:

         (a) an Officer's Certificate in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in
Section 13.05 hereof) stating that among other things in the opinion of the
signers, all conditions precedent and covenants, if any, provided for in this
Agreement relating to the proposed action have been satisfied; and

         (b) an opinion of counsel in form and substance reasonably satisfactory
to the Trustee (which shall include the statements set forth in Section 13.05
hereof) stating that among other things, in the opinion of such counsel, all
such conditions precedent and covenants have been satisfied.

         13.05 Statements Required in Certificate or Opinion.

         Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Agreement (other than a certificate provided
pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:

         (a) a statement that the Person making such certificate or opinion has
read such covenant or condition;

         (b) 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;

         (c) a statement that, in the opinion of such Person, he or she 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
satisfied; and

         (d) a statement as to whether or not, in the opinion of such Person,
such condition or covenant has been satisfied.

         13.06 Rules by the Trustee and Agents.

         The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

         13.07 No Personal Liability of Directors, Officers, Employees and
               Stockholders.

         No past, present or future director, officer, employee, incorporator or
stockholder of the Company or any Guarantor, as such, shall have any liability
for any obligations of the Company or any Guarantor under the Notes, the Note
Guarantees, this Agreement or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder by accepting a Note
waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes and the Note Guarantees. Notwithstanding
the foregoing nothing in

                                      123
<PAGE>

this provision shall be construed as a waiver or release of any claims under the
federal securities laws.

         13.08 Confidentiality.

         The Trustee, Collateral Trustee and any Co-Collateral Trustee (and not
jointly or jointly and severally) agree that non-public information regarding
the Note Parties, their operations, assets, and existing and contemplated
business plans (clearly marked and identified as such in writing by the Company
on the face of such information) shall be treated by the Trustee, Collateral
Trustee and any Co-Collateral Trustee in a confidential manner, and shall not be
disclosed by the Trustee, Collateral Trustee and any Co-Collateral Trustee to
Persons who are not parties to this Agreement, except: (a) to attorneys for and
other advisors, accountants, auditors, and consultants to any of the Trustee,
Collateral Trustee and any Co-Collateral Trustee, (b) to Subsidiaries and
Affiliates of any of the Trustee, Collateral Trustee and any Co-Collateral
Trustee, provided that any such Subsidiary or Affiliate shall have agreed to
receive such information hereunder subject to the terms of this Section 13.08,
(c) as may be required by statute, decision, or the Court (as defined in the New
Credit Agreement) or other judicial or administrative order, rule, or
regulation, or to the extent requested by any regulatory authority purporting to
have jurisdiction over any of the Trustee, Collateral Trustee and any
Co-Collateral Trustee (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (d) as may be agreed to in
advance by the Company or as requested or required by any Governmental Authority
pursuant to any subpoena or other legal process, (e) as to any such information
that is or becomes generally available to the public (other than as a result of
prohibited disclosure by the Trustee, Collateral Trustee and any Co-Collateral
Trustee), (f) in connection with any litigation or other adversary proceeding
involving parties hereto which such litigation or adversary proceeding involves
claims related to the rights or duties of such parties under this Agreement, the
Notes or the other Security Documents, and (g) to Holders of Notes as provided
in this Agreement and the Security Documents. The provisions of this Section
13.08 shall survive for 2 years after the payment in full of the Obligations.

         13.09 Governing Law.

         THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

         THE COMPANY AND EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE
JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN
THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN
THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS INDENTURE, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT
OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID
COURTS.

                                      124
<PAGE>

         THE COMPANY AND EACH GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY
SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY
SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

         THE COMPANY AND EACH GUARANTOR IRREVOCABLY CONSENTS, TO THE FULLEST
EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TO THE SERVICE OF PROCESS
OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE
MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO
THE COMPANY AND GUARANTOR AT THE ADDRESS SET FORTH HEREIN FOR THE COMPANY, SUCH
SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING HEREIN
SHALL AFFECT THE RIGHT OF ANY HOLDER TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
THE COMPANY IN ANY OTHER JURISDICTION.

         13.10 No Adverse Interpretation of Other Agreements.

         This Agreement may not be used to interpret any other indenture, loan
or debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Agreement.

         13.11 Successors.

         All agreements of the Company in this Agreement and the Notes shall
bind its successors. All agreements of the Trustee in this Agreement and the
Security Documents shall bind its successors. All agreements of each Guarantor
in this Agreement shall bind its successors, except as otherwise provided in
Sections 10.04 and 10.05.

         13.12 Severability.

         In case any provision in this Agreement or in the Notes 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.

         13.13 Counterpart Originals.

         The parties may sign any number of copies of this Agreement. Each
signed copy shall be an original, but all of them together represent the same
agreement.

         13.14 Table of Contents, Headings, etc.

         The Table of Contents, Cross-Reference Table and Headings of the
Articles and Sections of this Agreement have been inserted for convenience of
reference only, are not to be considered

                                      125
<PAGE>

a part of this Agreement and shall in no way modify or restrict any of the terms
or provisions hereof.

         13.15 Supremacy of this Agreement.

         If any term, condition or provision of this Agreement shall be
inconsistent with any term, condition or provision of any other Note Document,
this Agreement shall control. Notwithstanding the above, if any term, condition
or provision of Article X hereof or the Note Guarantees shall be inconsistent
with any term, condition or provision of the Guarantee Agreement, Article X
hereof or the Note Guarantees shall control.

         13.16 Further Assurances.

         Each Note Party shall, from time to time, execute and/or deliver such
documents, agreements, financing statements, and reports, and perform such acts
as Trustee at any time may reasonably request to carry out the purposes and
otherwise implement the terms and provisions provided for herein and in the
other Note Documents.

                         [Signatures on following pages]

                                      126
<PAGE>

                                   SIGNATURES

Dated as of March 1, 2004

                                             AMERCO

                                             By: /s/ Gary V. Klinefelter
                                                _______________________________
                                                Name:  Gary V. Klinefelter
                                                Title: Secretary

                                      S-1
<PAGE>

                                             GUARANTORS:

                                             AMERCO REAL ESTATE COMPANY, a
                                             Nevada corporation

                                             AMERCO REAL ESTATE SERVICES, INC. a
                                             Nevada corporation

                                             AMERCO REAL ESTATE COMPANY OF
                                             ALABAMA, INC., an Alabama
                                             corporation

                                             AMERCO REAL ESTATE COMPANY OF
                                             TEXAS, INC. a Texas corporation

                                             ONE PAC COMPANY, a Nevada
                                             corporation

                                             TWO PAC COMPANY, a Nevada
                                             corporation

                                             THREE PAC COMPANY, a Nevada
                                             corporation

                                             FOUR PAC COMPANY, a Nevada
                                             corporation

                                             FIVE PAC COMPANY, a Nevada
                                             corporation

                                             SIX PAC COMPANY, a Nevada
                                             corporation

                                             SEVEN PAC COMPANY, a Nevada
                                             corporation

                                             EIGHT PAC COMPANY, a Nevada
                                             corporation

                                             NINE PAC COMPANY, a Nevada
                                             corporation

                                             TEN PAC COMPANY, a Nevada
                                             corporation

                                             ELEVEN PAC COMPANY, a Nevada
                                             corporation

                                             TWELVE PAC COMPANY, a Nevada
                                             corporation

                                             FOURTEEN PAC COMPANY, a Nevada
                                             corporation

                                             FIFTEEN PAC COMPANY, a Nevada
                                             corporation

                                             SIXTEEN PAC COMPANY, a Nevada
                                             corporation

                                             SEVENTEEN PAC COMPANY, a Nevada
                                             corporation

                                             NATIONWIDE COMMERCIAL CO., an
                                             Arizona corporation

                                             PF&F HOLDINGS CORPORATION, a
                                             Delaware corporation

                                      S-2
<PAGE>

                                             YONKERS PROPERTY CORPORATION, a New
                                             York corporation

                                             By: /s/ Carlos Vizcarra
                                                ________________________________
                                                Carlos Vizcarra, President

                                      S-3
<PAGE>

                                             EMOVE, INC., a Nevada corporation

                                             WEB TEAM ASSOCIATES, INC. a Nevada
                                             corporation

                                             By: /s/ Thomas Tollison
                                                -------------------------------
                                                Thomas Tollison, Secretary

                                      S-4
<PAGE>

                                             U-HAUL INSPECTIONS LTD., a British
                                             Columbia corporation

                                             By: /s/ Wolfgang Bromba
                                                ________________________________
                                                Wolfgang Bromba, Secretary

                                      S-5
<PAGE>

                                             U-HAUL INTERNATIONAL, INC., a
                                             Nevada corporation

                                             A & M ASSOCIATES, INC., an Arizona
                                             corporation

                                             U-HAUL SELF-STORAGE CORPORATION, a
                                             Nevada corporation

                                             U-HAUL SELF-STORAGE MANAGEMENT
                                             (WPC), INC., a Nevada corporation

                                             U-HAUL BUSINESS CONSULTANTS, INC.,
                                             an Arizona corporation

                                             U-HAUL LEASING & SALES CO., a
                                             Nevada corporation

                                             U-HAUL CO. OF ALABAMA, INC., an
                                             Alabama corporation

                                             U-HAUL CO. OF ALASKA, an Alaska
                                             corporation

                                             U-HAUL CO. OF ARIZONA, an Arizona
                                             corporation

                                             U-HAUL CO. OF ARKANSAS, an Arkansas
                                             corporation

                                             U-HAUL CO. OF CALIFORNIA, a
                                             California corporation

                                             U-HAUL CO. OF COLORADO, a Colorado
                                             corporation

                                             U-HAUL CO. OF CONNECTICUT, a
                                             Connecticut corporation

                                             U-HAUL CO. OF DISTRICT OF COLUMBIA,
                                             INC., a District of Columbia
                                             corporation

                                             U-HAUL CO. OF FLORIDA, a Florida
                                             corporation

                                             U-HAUL CO. OF GEORGIA, a Georgia
                                             corporation

                                             U-HAUL OF HAWAII, INC., a Hawaii
                                             corporation

                                             U-HAUL CO. OF IDAHO, INC., an Idaho
                                             corporation

                                             U-HAUL CO. OF IOWA, INC., an Iowa
                                             corporation

                                             U-HAUL CO. OF ILLINOIS, INC., an
                                             Illinois corporation

                                      S-6
<PAGE>

                                             U-HAUL CO. OF INDIANA, INC., an
                                             Indiana corporation

                                             U-HAUL CO. OF KANSAS, INC., a
                                             Kansas corporation

                                             U-HAUL CO. OF KENTUCKY, a Kentucky
                                             corporation

                                             U-HAUL CO. OF LOUISIANA, a
                                             Louisiana corporation

                                             U-HAUL CO. OF MASSACHUSETTS AND
                                             OHIO, INC., a Massachusetts
                                             corporation

                                             U-HAUL CO. OF MARYLAND, INC., a
                                             Maryland corporation

                                             U-HAUL CO. OF MAINE, INC., a Maine
                                             corporation

                                             U-HAUL CO. OF MICHIGAN, a Michigan
                                             corporation

                                             U-HAUL CO. OF MINNESOTA, a
                                             Minnesota corporation

                                             U-HAUL COMPANY OF MISSOURI, a
                                             Missouri corporation

                                             U-HAUL CO. OF MISSISSIPPI, a
                                             Mississippi corporation

                                             U-HAUL CO. OF MONTANA, INC., a
                                             Montana corporation

                                             U-HAUL CO. OF NORTH CAROLINA, a
                                             North Carolina corporation

                                             U-HAUL CO. OF NORTH DAKOTA, a North
                                             Dakota corporation

                                             U-HAUL CO. OF NEBRASKA, a Nebraska
                                             corporation

                                             U-HAUL CO. OF NEVADA, INC., a
                                             Nevada corporation

                                             U-HAUL CO. OF NEW HAMPSHIRE, INC.,
                                             a New Hampshire corporation

                                             U-HAUL CO. OF NEW JERSEY, INC. a
                                             New Jersey corporation

                                             U-HAUL CO. OF NEW MEXICO, INC., a
                                             New Mexico corporation

                                      S-7
<PAGE>

                                             U-HAUL CO. OF NEW YORK, INC., a New
                                             York corporation

                                             U-HAUL CO. OF OKLAHOMA, INC., an
                                             Oklahoma corporation

                                             U-HAUL CO. OF OREGON, an Oregon
                                             corporation

                                             U-HAUL CO. OF PENNSYLVANIA, a
                                             Pennsylvania corporation

                                             U-HAUL CO. OF RHODE ISLAND, a Rhode
                                             Island corporation

                                             U-HAUL CO. OF SOUTH CAROLINA, INC.
                                             a South Carolina corporation

                                             U-HAUL CO. OF SOUTH DAKOTA, INC., a
                                             South Dakota corporation

                                             U-HAUL CO. OF TENNESSEE, a
                                             Tennessee corporation

                                             U-HAUL CO. OF TEXAS, a Texas
                                             corporation

                                             U-HAUL CO. OF UTAH, INC., a Utah
                                             corporation

                                             U-HAUL CO. OF VIRGINIA, a Virginia
                                             corporation

                                             U-HAUL CO. OF WASHINGTON, a
                                             Washington corporation

                                             U-HAUL CO. OF WISCONSIN, INC., a
                                             Wisconsin corporation

                                             U-HAUL CO. OF WEST VIRGINIA, a West
                                             Virginia corporation

                                             U-HAUL CO. OF WYOMING, INC., a
                                             Wyoming corporation

                                             U-HAUL CO. (CANADA) LTD. U-HAUL CO.
                                             (CANADA) LTEE, an Ontario
                                             corporation

                                             By: /s/ Gary V. Klinefelter
                                                ------------------------------
                                             Gary V. Klinefelter, Secretary

                                      S-8
<PAGE>

                                             WELLS FARGO BANK, N.A.,
                                             as Trustee

                                             By: /s/ Timothy P. Mowdy
                                                ________________________________
                                                Name:  Timothy P. Mowdy
                                                Title: Assistant Vice President

                                      S-9
<PAGE>

                                    EXHIBIT A

[Insert the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

                                 [FACE OF NOTE]

CUSIP No. [      ]
ISIN No.  [      ]

                 9.0% Second Lien Senior Secured Notes due 2009

No. _____                                                           $___________

                                             AMERCO

promises to pay to______________________________________________________________

or registered assigns,

the principal sum of____________________________________________________________

Dollars on________________, 2009.

The reference date for this Note is March 1, 2004. The Issue Date for this Note
is March 15, 2004.

Interest Payment Dates: March 15, June 15, September 15, and December 15

Record Dates: March 1, June 1, September 1, and December 1

                                             AMERCO

                                             By:________________________________
                                                Name:
                                                Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

Dated:  _______________, ____

WELLS FARGO BANK, N.A., as Trustee

By: ______________________________

Authorized Signatory [BACK OF NOTE]

                                       A-1
<PAGE>

                                 [BACK OF NOTE]

                 9.0% SECOND LIEN SENIOR SECURED NOTES DUE 2009

         Capitalized terms used herein shall have the meanings assigned to them
in the Indenture referred to below unless otherwise indicated.

         Interest. AMERCO, a Nevada corporation (the "Company"), promises to pay
interest on the principal amount of this Note at 9.0% per annum from March 15,
2004 until paid in full. The Company will pay interest quarterly in arrears on
March 15, June 15, September 15 and December 15 of each year, or if any such day
is not a Business Day, on the next succeeding Business Day (each, an "Interest
Payment Date"). Interest on the Notes will accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from the date of
issuance; provided that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided, further, that
the first Interest Payment Date shall be June 15, 2004.

         Interest will be computed on the basis of a 360-day year of four 90-day
quarters, or during any partial quarter, on the basis of a 360-day year for the
actual number of days elapsed.

         Upon the occurrence and during the continuation of an Event of Default
and in any event from and after the maturity hereof, the principal amount of
this Note and all other Obligations owing under the Note Documents (whether
overdue premium or installments of interest or otherwise) shall bear, and the
Company shall pay from time to time on demand, interest at a rate per annum that
is two percentage points (2.0%) in excess of the per annum rate otherwise
applicable hereunder and the other Note Documents.

         In addition to and not in substitution of the foregoing, Additional
Interest shall accrue, and the Company shall pay the same as and when due, in
accordance with the Indenture and the other Note Documents.

         METHOD OF PAYMENT. The Company will pay interest on the Notes (except
defaulted interest) to the Persons who are registered Holders of Notes at the
close of business on the March 1, June 1, September 1 or December 1 next
preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in
Section 2.12 of the Indenture with respect to defaulted interest. The Notes will
be payable as to principal, premium, if any, and interest at the office or
agency of the Company maintained for such purpose within or without the City and
State of New York, or, at the option of the Company, payment of interest may be
made by check mailed to the Holders at their addresses set forth in the register
of Holders, and provided that payment by wire transfer of immediately available
funds will be required with respect to principal of, premium, if any, and
interest on all Global Notes and all other Notes the Holders of which shall have
provided wire transfer instructions to the Company or the Paying Agent at least
ten Business Days prior to the applicable payment date. Such payment shall be 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.

         AGENT AND REGISTRAR. Initially, Wells Fargo Bank, N.A., the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Company may
change the Paying Agent

                                      A-2
<PAGE>

or Registrar only with the prior written consent of the Required Holders and
notice in writing to the Trustee. The Company or any of its Subsidiaries may act
in any such capacity.

         INDENTURE. The Company issued the Notes under an Indenture dated as of
March 1, 2004 ("Indenture") between the Company, the Guarantors listed on the
signature page therein (the "Guarantors") and the Trustee. The terms of the
Notes include those stated in the Indenture and those made part of the Indenture
by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
Sections 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The
Notes are obligations of the Company limited to $200,000,000 in aggregate
principal amount.

         OPTIONAL REDEMPTION.

         The Company shall not have the option to redeem the Notes pursuant to
this Section 3.07 prior to March 16, 2005. On or after March 16, 2005, the
Company shall have the option to redeem the Notes, in whole or in part, at the
redemption prices (expressed as percentages of principal amount) set forth
below, plus accrued and unpaid interest thereon to the applicable redemption
date, if redeemed during the 12-month period beginning on March 16 of the years
indicated below;

<TABLE>
<CAPTION>
Year                       Percentage
----                       ----------
<C>                        <C>
2005                       105.50%
2006                       104.50%
2007                       101.00%
2008 and thereafter        100.00%
</TABLE>

         Any such optional redemption shall be made pursuant to the provisions
of Sections 3.01 through 3.06 of the Indenture.

         MANDATORY REDEMPTION.

         Neither the Company nor the Guarantors shall be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

         NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 30
days but not more than 60 days before the redemption date to each Holder whose
Notes are to be redeemed at its registered address. On and after the redemption
date interest ceases to accrue on Notes or portions thereof called for
redemption.

         MATURITY. To the extent not sooner redeemed, accelerated, or otherwise
due and payable in accordance herewith or the other Note Documents, the
outstanding principal balance hereof, all accrued and unpaid interest thereon,
and all other Obligations owing under the Note Documents, shall be due and
payable on February 27, 2009.

                                      A-3
<PAGE>

         DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $1. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay
any taxes and fees required by law or permitted by the Indenture. The Company
need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, the Company need not exchange or register the transfer
of any Notes for a period of 15 days before a selection of Notes to be redeemed
or during the period between a record date and the succeeding Interest Payment
Date.

         PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated
as its owner for all purposes.

         AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the
Indenture, the Note Guarantees or the Notes may be amended or supplemented with
the consent of the Holders of at least a majority in principal amount of the
then outstanding Notes, and any existing default or compliance with any
provision of the Indenture, the Note Guarantees or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the then
outstanding Notes. Without the consent of any Holder of a Note, the Indenture,
the Note Guarantees or the Notes may be amended or supplemented to cure any
ambiguity, defect or inconsistency; to provide for uncertificated Notes in
addition to or in place of certificated Notes; to release any Guarantor from any
of its obligations under its Note Guarantee or the Indenture (to the extent
permitted by the Indenture); to make any change that does not materially
adversely affect the legal rights hereunder of any Holder of the Notes; or to
comply with requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the Trust Indenture Act.

         DEFAULTS AND REMEDIES. Events of Default include: (i) default for 5
days in the payment when due of interest or additional interest, if any, on the
Notes; (ii) default in payment when due of principal of the Notes when the same
becomes due and payable at maturity, upon redemption, upon purchase, upon
acceleration or otherwise; (iii) failure by the relevant Note Party to comply
with any of its agreements or covenants described under Sections 4.08, 4.11(b),
4.12, 4.16, 4.17, 11.07, 11.09 (except to the extent applicable under (xx)
below), 11.12, 11.17 or Article V of the Indenture; (iv) failure by the relevant
Note Party to comply with any of its agreements or covenants in Sections 4.04,
4.06, 4.07, 4.09, 4.10, 4.11(a), 4.13, 4.15, 4.19 and 11.10 of the Indenture and
such failure continues for a period of 20 Business Days; (v) failure by a Note
Party to comply with any covenants or agreements contained in the Indenture or
in any of the other Note Documents (giving effect to any grace periods, cure
periods, or required notices, if any, expressly provided for in such Note
Documents); in each case, other than any such covenant or agreement that is the
subject to another Event of Default, and such failure continues for a period of
20 Business Days; (vi) if any material portion of any Note Party's assets is
attached, seized, subjected to a writ or distress warrant, levied upon, or comes
into the possession of any third Person; (vii) if any Note Party is enjoined,
restrained, or in any way prevented by court order from continuing to conduct
all or any material part of its business affairs; (viii) if a notice of Lien,
levy, or assessment, individually or in the aggregate in an amount of $500,000
or greater, is filed of record with respect to any Note Party's assets by the
United States or Canada,

                                      A-4
<PAGE>

or any department, agency, or instrumentality thereof, or by any state,
province, territory, county, municipal, or governmental agency, or if any taxes
or debts owing at any time hereafter to any one or more of such entities becomes
a Lien, whether choate or otherwise, upon any Borrower's or any of its
Subsidiaries' assets and the same is not paid on the payment date thereof; (ix)
if a judgment or other claim becomes a Lien or encumbrance upon any material
portion of any Note Party's properties or assets; (x) if there is a default in
any material agreement to which any Note Party is a party including, without
limitation, any Material Contract, Affiliate Contract or any material contract
with any of SAC Holding, SSI, PMSR or PM Preferred (other than the New AMERCO
Notes and the Synthetic Leases) or any other Indebtedness in excess of
$1,000,000, and such default (a) occurs at the final maturity of the obligations
thereunder, or (b) results in the acceleration of the maturity of the applicable
Note Party's obligations thereunder; (xi) except as otherwise set forth in the
Reorganization Plan or as otherwise permitted by the Indenture, if any Note
Party makes any payment on account of Indebtedness that has been contractually
subordinated in right of payment to the payment of the Obligations of the Note
Parties under the Notes and the other Note Documents; (xii) if the obligation of
any Guarantor under the Guaranty Agreement or its Note Guarantee is limited or
terminated by operation of law or by such Guarantor thereunder; (xiii) if the
Indenture or any other Note Document that purports to create a Lien, shall, for
any reason, fail or cease to create a valid and perfected, except to the extent
permitted by the terms thereof, Lien on or security interest (each, second in
priority only to the first priority security interests granted to Bank Lenders'
Agent pursuant to the New Credit Agreement and the other Loan Documents (as
defined in the New Credit Agreement)) in the Collateral covered thereby; (xiv)
if any provision of any Note Document shall at any time for any reason be
declared to be null and void, or the validity or enforceability thereof shall be
contested by any Note Party, or a proceeding shall be commenced by any Note
Party, or by any Governmental Authority having jurisdiction over any Note Party,
seeking to establish the invalidity or unenforceability thereof, or any Note
Party shall deny that any Note Party has any liability or obligation purported
to be created under any Note Document; (xv) if suit or action is commenced
against the Trustee and/or any Note Holder and, as to any suit or action brought
by any Person other than the Note Parties or an officer or employee of the Note
Parties, is continued without dismissal for 30 days after service thereof on the
Trustee, that asserts, by or on behalf of the Note Parties, any claim or legal
or equitable remedy which seeks subordination of the claim or Lien of the
Trustee and/or any Note Holder hereunder or under any other Note Document; (xvi)
if any Note Party shall file any application in support of, or shall otherwise
fail to contest in good faith, a suit or action of the type set forth in clause
(xvi) above filed by any Person other than a Borrower or an officer or employee
of Borrowers; (xvii) if an Insolvency Proceeding is commenced by or against any
Note Party, or any of its Subsidiaries (other than INW), and any of the
following events occur: (a) the applicable Note Party or the Subsidiary consents
to the institution of the Insolvency Proceeding against it, (b) the petition
commencing the Insolvency Proceeding is not timely controverted, (c) the
petition commencing the Insolvency Proceeding is not dismissed within 45
calendar days of the date of the filing thereof, (d) an interim trustee is
appointed to take possession of all or any substantial portion of the properties
or assets of, or to operate all or any substantial portion of the business of,
any Note Party or any of its Subsidiaries, or (e) an order for relief shall have
been entered therein; (xviii) (1) if any event of default occurs under any New
AMERCO Note Document or any of the Synthetic Leases; (2) if any holder of New
AMERCO Notes contests that the Obligations hereunder constitute "Senior
Indebtedness" under the New AMERCO Note Indenture; or (3) any event of default
occurs under the New Credit Agreement of any other Loan Document (as defined in
the New Credit Agreement); (xix) failure by the Note Parties to register
substantially all of the Certificates of Title pursuant to

                                      A-5
<PAGE>

Section 11.01(c) of the Indenture within 180 days after the Issue Date; (xx)
failure by the Note Parties to deliver the Mortgages, related fixture filings
and Mortgage Policies pursuant to Section 11.01(a) and, as applicable, Section
11.09 of the Indenture within 60 days after the Issue Date, or (xxi) if any
material misstatement or material misrepresentation exists now or hereafter in
any warranty, representation, statement, or Record made to the Holders by any
Borrower, its Subsidiaries, or any officer, employee, agent, or director of any
Borrower or any of its Subsidiaries. If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable.
Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy or insolvency, all outstanding Notes will become
due and payable without further action or notice. Holders may not enforce the
Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, Holders of a majority in principal amount of the then outstanding
Notes may direct the Trustee in its exercise of any trust or power. The Trustee
may withhold from Holders of the Notes notice of any continuing Default (except
a Default relating to the payment of principal or interest) if it determines
that withholding notice is in their interest. The Holders of a majority in
aggregate principal amount of the Notes then outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing
Default and its consequences under the Indenture except a continuing Default in
the payment of interest on, premium and Additional Interest, if any, or the
principal of, the Notes. The Company is required to deliver to the Trustee
annually a statement regarding compliance with the Indenture, and the Company is
required upon becoming aware of any Default, to deliver to the Trustee a
statement specifying such Default.

         TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services
for the Company or its Affiliates, and may otherwise deal with the Company or
its Affiliates, as if it were not the Trustee.

         NO RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator
or stockholder of the Company or any Guarantor, as such, shall not have any
liability for any obligations of the Company or any Guarantor under the Notes,
the Note Guarantees or the Indenture or for any claim based on, in respect of,
or by reason of, such obligations or their creation. Each Holder by accepting a
Note waives and releases all such liability. The waiver and release are part of
the consideration for the issuance of the Notes and the Guarantees.

         AUTHENTICATION. This Note shall not be valid until authenticated by the
manual signature of the Trustee or an authenticating agent.

         ABBREVIATIONS. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (=-Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

         CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

                                      A-6
<PAGE>

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture. Requests may be made to:

                  AMERCO
                  1325 Airmotive Way, Suite 100
                  Reno, Nevada  89502-3239
                  Attention:  Assistant Treasurer

                                      A-7
<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:___________________________________
                                               (Insert assignee's legal name)

________________________________________________________________________________
                 (Insert assignee's soc. sec. or tax I.D. no.)

________________________________________________________________________________

________________________________________________________________________________
(Print or type assignee's name, address and zip code)

and irrevocably appoint_________________________________________________________
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

Date:_____________

                                             Your Signature:____________________
                                                      (Sign exactly as your name
                                                        appears on the face of
                                                        this Note)

Signature Guarantee*:________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A-8
<PAGE>

             SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

         The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of
another Global Note or Definitive Note for an interest in this Global Note, have
been made:

<TABLE>
<CAPTION>
                                                          Principal Amount
                     Amount of           Amount of        [at maturity] of     Signature of
                    decrease in         increase in       this Global Note      authorized
                  Principal Amount    Principal Amount     following such     officer of the
                  [at maturity] of    [at maturity] of      decrease (or      Trustee or Note
Date of Exchange  this Global Note    this Global Note       increase)          Custodian
----------------  ----------------    ----------------    ----------------    ---------------
<S>               <C>                 <C>                 <C>                 <C>
</TABLE>

* This schedule should be included only if the Note is issued in global form.

                                      A-9
<PAGE>

                                    EXHIBIT B

    [Insert the Global Note Legend, if applicable pursuant to the provisions
                                of the Indenture]
                      [Insert the Private Placement Legend]

                                 [FACE OF NOTE]

CUSIP No. [       ]
ISIN No.  [       ]

                 9.0% Second Lien Senior Secured Notes due 2009

No. _______                                                        $____________

                                             AMERCO

promises to pay to______________________________________________________________

or registered assigns,

the principal sum of____________________________________________________________

Dollars on_____________, 2009.

The reference date for this Note is March 1, 2004. The Issue Date for this Note
is March 15, 2004.

Interest Payment Dates: March 15, June 15, September 15, and December 15

Record Dates: March 1, June 1, September 1, and December 1

                                             AMERCO

                                             By:________________________________
                                                Name:
                                                Title:

This is one of the Notes referred to in
the within-mentioned Indenture:

Dated:  _______________, ____

WELLS FARGO BANK, N.A., as Trustee

By:________________________________

Authorized Signatory [BACK OF NOTE]

                                      B-1
<PAGE>

                                 [BACK OF NOTE]

                 9.0% SECOND LIEN SENIOR SECURED NOTES DUE 2009

         Capitalized terms used herein shall have the meanings assigned to them
in the Indenture referred to below unless otherwise indicated.

         INTEREST. AMERCO, a Nevada corporation (the "Company"), promises to pay
interest on the principal amount of this Note at 9.0% per annum from March 15,
2004 until paid in full. The Company will pay interest quarterly in arrears on
March 15, June 15, September 15 and December 15 of each year, or if any such day
is not a Business Day, on the next succeeding Business Day (each, an "Interest
Payment Date"). Interest on the Notes will accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from the date of
issuance; provided that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided, further, that
the first Interest Payment Date shall be June 15, 2004.

         Interest will be computed on the basis of a 360-day year of four 90-day
quarters, or during any partial quarter, on the basis of a 360-day year for the
actual number of days elapsed.

         Upon the occurrence and during the continuation of an Event of Default
and in any event from and after the maturity hereof, the principal amount of
this Note and all other Obligations owing under the Note Documents (whether
overdue premium or installments of interest or otherwise) shall bear, and the
Company shall pay from time to time on demand, interest at a rate per annum that
is two percentage points (2.0%) in excess of the per annum rate otherwise
applicable hereunder and the other Note Documents.

         In addition to and not in substitution of the foregoing, Additional
Interest shall accrue, and the Company shall pay the same as and when due, in
accordance with the Indenture and the other Note Documents.

         METHOD OF PAYMENT. The Company will pay interest on the Notes (except
defaulted interest) to the Persons who are registered Holders of Notes at the
close of business on the March 1, June 1, September 1 or December 1 next
preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in
Section 2.12 of the Indenture with respect to defaulted interest. The Notes will
be payable as to principal, premium, if any, and interest at the office or
agency of the Company maintained for such purpose within or without the City and
State of New York, or, at the option of the Company, payment of interest may be
made by check mailed to the Holders at their addresses set forth in the register
of Holders, and provided that payment by wire transfer of immediately available
funds will be required with respect to principal of, premium, if any, and
interest on all Global Notes and all other Notes the Holders of which shall have
provided wire transfer instructions to the Company or the Paying Agent at least
ten Business Days prior to the applicable payment date. Such payment shall be 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.

         AGENT AND REGISTRAR. Initially, Wells Fargo Bank, N.A., the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Company may
change the Paying Agent

                                      B-2
<PAGE>

or Registrar only with the prior written consent of the Required Holders and
notice in writing to the Trustee. The Company or any of its Subsidiaries may act
in any such capacity.

         INDENTURE. The Company issued the Notes under an Indenture dated as of
March 1, 2004 ("Indenture") between the Company, the Guarantors listed on the
signature page therein (the "Guarantors") and the Trustee. The terms of the
Notes include those stated in the Indenture and those made part of the Indenture
by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
Sections 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The
Class B Notes are obligations of the Company limited to $80,000,000.00 in
aggregate principal amount, and the Notes are obligations of the Company limited
to $200,000,000.00 in aggregate principal amount.

         OPTIONAL REDEMPTION. The Company shall not have the option to redeem
the Notes pursuant to this Section 3.07 prior to March 16, 2005. On or after
March 16, 2005, the Company shall have the option to redeem the Notes, in whole
or in part, at the redemption prices (expressed as percentages of principal
amount) set forth below, plus accrued and unpaid interest thereon to the
applicable redemption date, if redeemed during the 12-month period beginning on
March 16 of the years indicated below;

<TABLE>
<CAPTION>
Year                      Percentage
----                      ----------
<S>                       <C>
2005                      105.50%
2006                      104.50%
2007                      101.00%
2008 and thereafter       100.00%
</TABLE>

         Any such optional redemption shall be made pursuant to the provisions
of Sections 3.01 through 3.06 of the Indenture.

         MANDATORY REDEMPTION.

         Neither the Company nor the Guarantors shall be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

         NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 30
days but not more than 60 days before the redemption date to each Holder whose
Notes are to be redeemed at its registered address. On and after the redemption
date interest ceases to accrue on Notes or portions thereof called for
redemption.

         MATURITY. To the extent not sooner redeemed, accelerated, or otherwise
due and payable in accordance herewith or the other Note Documents, the
outstanding principal balance hereof, all accrued and unpaid interest thereon,
and all other Obligations owing under the Note Documents, shall be due and
payable on February 27, 2009.

                                      B-3
<PAGE>

         DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $1. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay
any taxes and fees required by law or permitted by the Indenture. The Company
need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, the Company need not exchange or register the transfer
of any Notes for a period of 15 days before a selection of Notes to be redeemed
or during the period between a record date and the succeeding Interest Payment
Date.

         PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated
as its owner for all purposes.

         AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the
Indenture, the Note Guarantees or the Notes may be amended or supplemented with
the consent of the Holders of at least a majority in principal amount of the
then outstanding Notes, and any existing default or compliance with any
provision of the Indenture, the Note Guarantees or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the then
outstanding Notes. Without the consent of any Holder of a Note, the Indenture,
the Note Guarantees or the Notes may be amended or supplemented to cure any
ambiguity, defect or inconsistency; to provide for uncertificated Notes in
addition to or in place of certificated Notes; to release any Guarantor from any
of its obligations under its Note Guarantee or the Indenture (to the extent
permitted by the Indenture); to make any change that does not materially
adversely affect the legal rights hereunder of any Holder of the Notes; or to
comply with requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the Trust Indenture Act.

         DEFAULTS AND REMEDIES. Events of Default include: (i) default for 5
days in the payment when due of interest or additional interest, if any, on the
Notes; (ii) default in payment when due of principal of the Notes when the same
becomes due and payable at maturity, upon redemption, upon purchase, upon
acceleration or otherwise; (iii) failure by the relevant Note Party to comply
with any of its agreements or covenants described under Sections 4.08, 4.11(b),
4.12, 4.16, 4.17, 11.07, 11.09 (except to the extent applicable under (xx)
below), 11.12, 11.17 or Article V of the Indenture; (iv) failure by the relevant
Note Party to comply with any of its agreements or covenants in Sections 4.04,
4.06, 4.07, 4.09, 4.10, 4.11(a), 4.13, 4.15, 4.19 and 11.10 of the Indenture and
such failure continues for a period of 20 Business Days; (v) failure by a Note
Party to comply with any covenants or agreements contained in the Indenture or
in any of the other Note Documents (giving effect to any grace periods, cure
periods, or required notices, if any, expressly provided for in such Note
Documents); in each case, other than any such covenant or agreement that is the
subject to another Event of Default, and such failure continues for a period of
20 Business Days; (vi) if any material portion of any Note Party's assets is
attached, seized, subjected to a writ or distress warrant, levied upon, or comes
into the possession of any third Person; (vii) if any Note Party is enjoined,
restrained, or in any way prevented by court order from continuing to conduct
all or any material part of its business affairs; (viii) if a notice of Lien,
levy, or assessment, individually or in the aggregate in an amount of $500,000
or greater, is filed of record with respect to any Note Party's assets by the
United States or Canada, or any department, agency, or instrumentality thereof,
or by any state, province, territory, county,

                                      B-4
<PAGE>

municipal, or governmental agency, or if any taxes or debts owing at any time
hereafter to any one or more of such entities becomes a Lien, whether choate or
otherwise, upon any Borrower's or any of its Subsidiaries' assets and the same
is not paid on the payment date thereof; (ix) if a judgment or other claim
becomes a Lien or encumbrance upon any material portion of any Note Party's
properties or assets; (x) if there is a default in any material agreement to
which any Note Party is a party including, without limitation, any Material
Contract, Affiliate Contract or any material contract with any of SAC Holding,
SSI, PMSR or PM Preferred (other than the New AMERCO Notes and the Synthetic
Leases) or any other Indebtedness in excess of $1,000,000, and such default (a)
occurs at the final maturity of the obligations thereunder, or (b) results in
the acceleration of the maturity of the applicable Note Party's obligations
thereunder; (xi) except as otherwise set forth in the Reorganization Plan or as
otherwise permitted by the Indenture, if any Note Party makes any payment on
account of Indebtedness that has been contractually subordinated in right of
payment to the payment of the Obligations of the Note Parties under the Notes
and the other Note Documents; (xii) if the obligation of any Guarantor under the
Guaranty Agreement or its Note Guarantee is limited or terminated by operation
of law or by such Guarantor thereunder; (xiii) if the Indenture or any other
Note Document that purports to create a Lien, shall, for any reason, fail or
cease to create a valid and perfected, except to the extent permitted by the
terms thereof, Lien on or security interest (each, second in priority only to
the first priority security interests granted to Bank Lenders' Agent pursuant to
the New Credit Agreement and the other Loan Documents (as defined in the New
Credit Agreement)) in the Collateral covered thereby; (xiv) if any provision of
any Note Document shall at any time for any reason be declared to be null and
void, or the validity or enforceability thereof shall be contested by any Note
Party, or a proceeding shall be commenced by any Note Party, or by any
Governmental Authority having jurisdiction over any Note Party, seeking to
establish the invalidity or unenforceability thereof, or any Note Party shall
deny that any Note Party has any liability or obligation purported to be created
under any Note Document; (xv) if suit or action is commenced against the Trustee
and/or any Note Holder and, as to any suit or action brought by any Person other
than the Note Parties or an officer or employee of the Note Parties, is
continued without dismissal for 30 days after service thereof on the Trustee,
that asserts, by or on behalf of the Note Parties, any claim or legal or
equitable remedy which seeks subordination of the claim or Lien of the Trustee
and/or any Note Holder hereunder or under any other Note Document; (xvi) if any
Note Party shall file any application in support of, or shall otherwise fail to
contest in good faith, a suit or action of the type set forth in clause (xvi)
above filed by any Person other than a Borrower or an officer or employee of
Borrowers; (xvii) if an Insolvency Proceeding is commenced by or against any
Note Party, or any of its Subsidiaries (other than INW), and any of the
following events occur: (a) the applicable Note Party or the Subsidiary consents
to the institution of the Insolvency Proceeding against it, (b) the petition
commencing the Insolvency Proceeding is not timely controverted, (c) the
petition commencing the Insolvency Proceeding is not dismissed within 45
calendar days of the date of the filing thereof, (d) an interim trustee is
appointed to take possession of all or any substantial portion of the properties
or assets of, or to operate all or any substantial portion of the business of,
any Note Party or any of its Subsidiaries, or (e) an order for relief shall have
been entered therein; (xviii) (1) if any event of default occurs under any New
AMERCO Note Document or any of the Synthetic Leases; (2) if any holder of New
AMERCO Notes contests that the Obligations hereunder constitute "Senior
Indebtedness" under the New AMERCO Note Indenture; or (3) any event of default
occurs under the New Credit Agreement of any other Loan Document (as defined in
the New Credit Agreement); (xix) failure by the Note Parties to register
substantially all of the Certificates of Title pursuant to Section 11.01(c) of
the Indenture within 180 days after the Issue Date; (xx) failure by the Note

                                      B-5
<PAGE>

Parties to deliver the Mortgages, related fixture filings and Mortgage Policies
pursuant to Section 11.01(a) and, as applicable, Section 11.09 of the Indenture
within 60 days after the Issue Date, or (xxi) if any material misstatement or
material misrepresentation exists now or hereafter in any warranty,
representation, statement, or Record made to the Holders by any Borrower, its
Subsidiaries, or any officer, employee, agent, or director of any Borrower or
any of its Subsidiaries. If any Event of Default occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes may declare all the Notes to be due and payable.
Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy or insolvency, all outstanding Notes will become
due and payable without further action or notice. Holders may not enforce the
Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, Holders of a majority in principal amount of the then outstanding
Notes may direct the Trustee in its exercise of any trust or power. The Trustee
may withhold from Holders of the Notes notice of any continuing Default (except
a Default relating to the payment of principal or interest) if it determines
that withholding notice is in their interest. The Holders of a majority in
aggregate principal amount of the Notes then outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing
Default and its consequences under the Indenture except a continuing Default in
the payment of interest on, premium and Additional Interest, if any, or the
principal of, the Notes. The Company is required to deliver to the Trustee
annually a statement regarding compliance with the Indenture, and the Company is
required upon becoming aware of any Default, to deliver to the Trustee a
statement specifying such Default.

         TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services
for the Company or its Affiliates, and may otherwise deal with the Company or
its Affiliates, as if it were not the Trustee.

         NO RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator
or stockholder of the Company or any Guarantor, as such, shall not have any
liability for any obligations of the Company or any Guarantor under the Notes,
the Note Guarantees or the Indenture or for any claim based on, in respect of,
or by reason of, such obligations or their creation. Each Holder by accepting a
Note waives and releases all such liability. The waiver and release are part of
the consideration for the issuance of the Notes and the Guarantees.

         AUTHENTICATION. This Note shall not be valid until authenticated by the
manual signature of the Trustee or an authenticating agent.

         ADDITIONAL RIGHTS OF HOLDERS OF CLASS B GLOBAL NOTES AND CLASS B
DEFINITIVE NOTES. In addition to the rights provided to Holders of Notes under
the Indenture, Holders of Restricted Global Notes and Restricted Definitive
Notes shall have all the rights set forth in the Note Purchase Agreement and
Registration Rights Agreement each dated as of March 1, 2004 between the Company
and the parties named on the signature pages thereof (respectively, "Note
Purchase Agreement" and the "Registration Rights Agreement").

         ABBREVIATIONS. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

                                      B-6
<PAGE>

         CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture. Requests may be made to:

                  AMERCO
                  1325 Airmotive Way, Suite 100
                  Reno, Nevada  89502-3239
                  Attention:  Assistant Treasurer

                                      B-7
<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:___________________________________
                                               (Insert assignee's legal name)

________________________________________________________________________________
                  (Insert assignee's soc. sec. or tax I.D. no.)

________________________________________________________________________________

________________________________________________________________________________
(Print or type assignee's name, address and zip code)

and irrevocably appoint_________________________________________________________
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

Date:_____________

                                             Your Signature:____________________
                                                      (Sign exactly as your name
                                                        appears on the face of
                                                        this Note)

Signature Guarantee*:________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      B-8
<PAGE>

             SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

         The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of
another Global Note or Definitive Note for an interest in this Global Note, have
been made:

<TABLE>
<CAPTION>
                                                          Principal Amount
                     Amount of           Amount of        [at maturity] of     Signature of
                    decrease in         increase in       this Global Note      authorized
                  Principal Amount    Principal Amount     following such     officer of the
                  [at maturity] of    [at maturity] of      decrease (or      Trustee or Note
Date of Exchange  this Global Note    this Global Note       increase)          Custodian
----------------  ----------------    ----------------    -----------------   ---------------
<S>               <C>                 <C>                 <C>                 <C>
</TABLE>

* This schedule should be included only if the Note is issued in global form.

                                      B-9
<PAGE>

                                    EXHIBIT C

                          FORM OF NOTATION OF GUARANTEE

         For value received, each Guarantor (which term includes any successor
Person under the Indenture) has, jointly and severally, fully and
unconditionally guaranteed, to the extent set forth in the Indenture (defined
below) and subject to the provisions in the Indenture dated as of March 1, 2004
(the "Indenture") among AMERCO, the Guarantors listed on the signature pages
thereto and Wells Fargo Bank, N.A., as trustee (the "Trustee"), (a) the due and
punctual payment of the principal of and interest on the Notes (as defined in
the Indenture), whether at maturity, by acceleration, redemption or otherwise,
the due and punctual payment of interest on overdue principal and, to the extent
permitted by law, interest, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee all in accordance with
the terms of the Indenture and (b) in case of any extension of time of payment
or renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise.
The obligations of the Guarantors to the Holders of Notes and to the Trustee
pursuant to the Note Guarantee and the Indenture are expressly set forth in
Article X of the Indenture and reference is hereby made to the Indenture for the
precise terms of the Note Guarantee. Each Holder of a Note, by accepting the
same, (a) agrees to and shall be bound by such provisions, (b) authorizes and
directs the Trustee, on behalf of such Holder, to take such action as may be
necessary or appropriate to effectuate the subordination as provided in the
Indenture and (c) appoints the Trustee attorney-in-fact of such Holder for such
purpose; provided, however, that the Indebtedness evidenced by this Note
Guarantee shall cease to be so subordinated and subject in right of payment upon
any defeasance of this Note in accordance with the provisions of the Indenture.

                               [Guarantors' Signature Blocks to be Provided]

                                       C-1
<PAGE>
                                    EXHIBIT D

                         FORM OF SUPPLEMENTAL INDENTURE

                    TO BE DELIVERED BY SUBSEQUENT GUARANTORS

         Supplemental Indenture (this "Supplemental Indenture"), dated as of
________________, among __________________ (the "Guaranteeing Subsidiary"), a
subsidiary of AMERCO (or its permitted successor), a Nevada corporation (the
"Company"), the Company, the other Guarantors (as defined in the Indenture
referred to herein) and Wells Fargo Bank, N.A., as trustee under the indenture
referred to below (the "Trustee").

                              W I T N E S S E T H:

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee an indenture (the "Indenture"), dated as of March 1, 2004 providing for
the issuance of an aggregate principal amount of up to $200,000,000 of 9.0%
Second Lien Senior Secured Notes due 2009 (the "Notes");

         WHEREAS, the Indenture provides that under certain circumstances the
Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally
guarantee all of the Company's Obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "Note Guarantee"); and

         WHEREAS, pursuant to the terms of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

         NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

         CAPITALIZED TERMS. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.

         AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees as
follows:

         (a) Along with all Guarantors named in the Indenture, to jointly and
severally Guarantee to each Holder of a Note authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, the Notes or the
obligations of the Company hereunder or thereunder, that:

                  (i) the principal of and interest on the Notes will be
         promptly paid in full when due, whether at maturity, by acceleration,
         redemption or otherwise, and interest on the overdue principal of, the
         premium and Additional Interest and interest on the Notes,

                                       D-1
<PAGE>

         if any, if lawful, and all other obligations of the Company to the
         Holders or the Trustee hereunder or thereunder will be promptly paid in
         full or performed, all in accordance with the terms hereof and thereof;
         and

                  (ii) in case of any extension of time of payment or renewal of
         any Notes or any of such other obligations, that same will be promptly
         paid in full when due or performed in accordance with the terms of the
         extension or renewal, whether at stated maturity, by acceleration or
         otherwise. Failing payment when due of any amount so guaranteed or any
         performance so guaranteed for whatever reason, the Guarantors shall be
         jointly and severally obligated to pay the same immediately.

         (b) The obligations hereunder shall be full and unconditional,
irrespective of the validity or enforceability of the Notes or the Indenture,
the absence of any action to enforce the same, any waiver or consent by any
Holder of the Notes with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to enforce the same or
any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor.

         (c) The following is hereby waived: diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever.

         (d) This Note Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes and the Indenture, and the
Guaranteeing Subsidiary accepts all obligations of a Guarantor under the
Indenture.

         (e) If any Holder or the Trustee is required by any court or otherwise
to return to the Company, the Guarantors, or any Custodian, the Trustee,
liquidator or other similar official acting in relation to either the Company or
the Guarantors, any amount paid by either to the Trustee or such Holder, this
Note Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect.

         (f) The Guaranteeing Subsidiary shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby.

         (g) As between the Guarantors, on the one hand, and the Holders and the
Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article VI of the Indenture for the
purposes of this Note Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article VI of the Indenture, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of this Note Guarantee.

         (h) The Guarantors shall have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the
rights of the Holders under the Guarantee.

                                       D-2
<PAGE>

         (i) Pursuant to Section 10.02 of the Indenture, after giving effect to
any maximum amount and any other contingent and fixed liabilities that are
relevant under any applicable Bankruptcy or fraudulent conveyance laws, and
after giving effect to any collections from, rights to receive contribution from
or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under Article X of the Indenture, this new
Note Guarantee shall be limited to the maximum amount permissible such that the
obligations of such Guarantor under this Note Guarantee will not constitute a
fraudulent transfer or conveyance.

         EXECUTION AND DELIVERY. Each Guaranteeing Subsidiary agrees that the
Note Guarantees shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Note Guarantee.

         GUARANTEEING SUBSIDIARY MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

         (j) Except as otherwise provided in Section 5.03 of the Indenture, the
Guaranteeing Subsidiary may not consolidate with or merge with or into (whether
or not such Guarantor is the surviving Person) another corporation, Person or
entity whether or not affiliated with such Guarantor. Any such permitted
consolidation, merger, sale or conveyance shall not be effective or permitted
unless:

                  (i) subject to Sections 10.04 and 10.05 of the Indenture, the
         Person formed by or surviving any such consolidation or merger (if
         other than a Guarantor or the Company) unconditionally assumes all the
         obligations of such Guarantor, pursuant to a supplemental indenture in
         form of Exhibit D to the Indenture, under the Notes, the Indenture and
         the Note Guarantee on the terms set forth herein or therein; and

                  (ii) immediately after giving effect to such transaction, no
         Default or Event of Default exists.

         (k) In case of any such consolidation, merger, sale or conveyance and
upon the assumption by the successor Person, by supplemental indenture, executed
and delivered to the Trustee, of the Note Guarantee endorsed upon the Notes and
the due and punctual performance of all of the covenants and conditions of the
Indenture to be performed by the Guarantor, such successor Person shall succeed
to and be substituted for the Guarantor with the same effect as if it had been
named herein as a Guarantor. Such successor Person thereupon may cause to be
signed any or all of the Note Guarantees to be endorsed upon all of the Notes
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee. All the Note Guarantees so issued shall in all
respects have the same legal rank and benefit under the Indenture as the Note
Guarantees theretofore and thereafter issued in accordance with the terms of the
Indenture as though all of such Note Guarantees had been issued at the date of
the execution hereof.

         (l) Any consolidation or merger of a Guarantor with or into the Company
or another Guarantor, or any sale or conveyance of the property of a Guarantor
as an entirety or substantially as an entirety to the Company or another
Guarantor shall be permitted only in accordance with the terms and provisions of
the Indenture.

                                      D-3
<PAGE>

         RELEASES.

         (m) A Guarantor shall be released from its obligations only in
accordance with the terms and provisions of the Indenture.

         (n) The Guaranteeing Subsidiary, if not released from its obligations
under the Note Guarantee, shall remain liable for the full amount of principal
of and interest on the Notes and for the other obligations of any Guarantor
under the Indenture as provided in Article X of the Indenture.

         NO RECOURSE AGAINST OTHERS. No past, present or future director,
officer, employee, incorporator, stockholder or agent of the Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Company
or any Guaranteeing Subsidiary under the Notes, any Note Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes and the
Guarantees. Such waiver may not be effective to waive liabilities under the
federal securities laws and it is the view of the Securities and Exchange
Commission that such a waiver is against public policy.

         NEW YORK LAW TO GOVERN. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

         COUNTERPARTS. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

         EFFECT OF HEADINGS. The Section headings herein are for convenience
only and shall not affect the construction hereof.

         TRUSTEE. The Trustee shall not be responsible in any manner whatsoever
for or in respect of the validity or sufficiency of this Supplemental Indenture
or for or in respect of the recitals contained herein, all of which recitals are
made solely by the Guaranteeing Subsidiary and the Company.

                                       D-4
<PAGE>

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

Dated:_____________, ____

                                             [GUARANTEEING SUBSIDIARY]

                                             By:________________________________
                                                Name:
                                                Title:

                                             [Guarantors' Signature Blocks to
                                             be Provided]

                                       D-5

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