Document:

Exhibit 10.6

 

	Security Agreement	 

 

THIS SECURITY AGREEMENT
(this “Agreement”), dated as of September 15, 2022, is made by and between VERIFYME, INC. (the “Grantor”), with
an address at CLINTON SQUARE, 75 S CLINTON AVE STE 510, ROCHESTER, NY 14604-1710, and PNC BANK, NATIONAL ASSOCIATION (the “Bank”),
with an address at 200 Lake Drive East, 3rd Floor, Cherry Hill, New Jersey 08002.

 

Under the terms hereof, the
Bank desires to obtain and the Grantor desires to grant the Bank security for all of the Obligations (as hereinafter defined).

 

NOW, THEREFORE, the
Grantor and the Bank, intending to be legally bound, hereby agree as follows:

 

1.             Definitions.

 

(a)       “Collateral”
shall include all personal property of the Grantor, including the following, all whether now owned or hereafter acquired or arising and
wherever located: (i) accounts (including health-care-insurance receivables and credit card receivables); (ii) securities entitlements,
securities accounts, commodity accounts, commodity contracts and investment property; (iii) deposit accounts; (iv) instruments (including
promissory notes); (v) documents (including warehouse receipts); (vi) chattel paper (including electronic chattel paper and tangible chattel
paper); (vii) inventory, including raw materials, work in process, or materials used or consumed in Grantor’s business, items held
for sale or lease or furnished or to be furnished under contracts of service, sale or lease, goods that are returned, reclaimed or repossessed;
(viii) goods of every nature, including stock-in-trade, goods on consignment, standing timber that is to be cut and removed under a conveyance
or contract for sale, the unborn young of animals, crops grown, growing, or to be grown, manufactured homes, computer programs embedded
in such goods and farm products; (ix) equipment, including machinery, vehicles and furniture; (x) fixtures; (xi) agricultural liens; (xii)
as-extracted collateral; (xiii) commercial tort claims, if any, described on Exhibit “A” hereto (if an Exhibit A is attached);
(xiv) letter of credit rights; (xv) general intangibles, of every kind and description, including payment intangibles, software, computer
information, source codes, object codes, records and data, all existing and future customer lists, choses in action, claims (including
claims for indemnification or breach of warranty), books, records, patents and patent applications, copyrights, trademarks, tradenames,
tradestyles, trademark applications, goodwill, blueprints, drawings, designs and plans, trade secrets, contracts, licenses, license agreements,
formulae, tax and any other types of refunds, returned and unearned insurance premiums, rights and claims under insurance policies; (xvi)
all supporting obligations of all of the foregoing property; (xvii) all property of the Grantor now or hereafter in the Bank’s possession
or in transit to or from, or under the custody or control of, the Bank or any affiliate thereof; (xviii) all cash and cash equivalents
thereof; and (xix) all cash and noncash proceeds (including insurance proceeds) of all of the foregoing property, all products thereof
and all additions and accessions thereto, substitutions therefor and replacements thereof. The Collateral shall also include any and all
other tangible or intangible property that is described as being part of the Collateral pursuant to one or more Riders to Security Agreement
that may be attached hereto or delivered in connection herewith, including the Rider to Security Agreement - Copyrights, the Rider to
Security Agreement - Patents, the Rider to Security Agreement - Trademarks and the Rider to Security Agreement - Cash Collateral Account.

 

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(b)       “Obligations”
shall include all loans, advances, debts, liabilities, obligations, covenants and duties owing by the Grantor or by PERISHIP GLOBAL
LLC to the Bank or to any other direct or indirect subsidiary of The PNC Financial Services Group, Inc., of any kind or nature, present
or future (including any interest accruing thereon after maturity, or after the filing of any petition in bankruptcy, or the commencement
of any insolvency, reorganization or like proceeding relating to the Grantor, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding), whether direct or indirect (including those acquired by assignment or participation), absolute
or contingent, joint or several, due or to become due, now existing or hereafter arising, whether or not (i) evidenced by any note, guaranty
or other instrument, (ii) arising under any agreement, instrument or document, (iii) for the payment of money, (iv) arising by reason
of an extension of credit, opening of a letter of credit, loan, equipment lease or guarantee, (v) under any interest rate, commodity or
currency swap, future, option or other similar transaction or agreement, (vi) under or by reason of any foreign currency transaction,
forward, option or other similar transaction providing for the purchase of one currency in exchange for the sale of another currency,
or in any other manner, (vii) arising out of overdrafts on deposit or other accounts or out of electronic funds transfers (whether by
wire transfer or through automated clearing houses or otherwise) or out of the return unpaid of, or other failure of the Bank to receive
final payment for, any check, item, instrument, payment order or other deposit or credit to a deposit or other account, or out of the
Bank’s non-receipt of or inability to collect funds or otherwise not being made whole in connection with depository or other similar
arrangements; and any amendments, extensions, renewals and increases of or to any of the foregoing, and all costs and expenses of the
Bank incurred in the documentation, negotiation, modification, enforcement, collection and otherwise in connection with any of the foregoing,
including reasonable attorneys’ fees and expenses.

 

(c)       “UCC”
means the Uniform Commercial Code, as adopted and enacted and as in effect from time to time in the State whose law governs pursuant to
the Section of this Agreement entitled “Governing Law and Jurisdiction.” Terms used herein which are defined in the UCC and
not otherwise defined herein shall have the respective meanings ascribed to such terms in the UCC. To the extent the definition of any
category or type of collateral is modified by any amendment, modification or revision to the UCC, such modified definition will apply
automatically as of the date of such amendment, modification or revision.

 

2.             Grant
of Security Interest. To secure the Obligations, the Grantor, as debtor, hereby assigns and grants to the Bank, as secured party,
a continuing lien on and security interest in the Collateral.

 

3.             Change
in Name or Locations. The Grantor hereby agrees that if the location of the Collateral changes from the locations listed on Exhibit
“A” hereto and made part hereof, or if the Grantor changes its name, its type of organization, its state of organization (if
Grantor is a registered organization), its principal residence (if Grantor is an individual), its chief executive office (if Grantor is
a general partnership or non-registered organization) or establishes a name in which it may do business that is not listed as a tradename
on Exhibit “A” hereto, the Grantor will immediately notify the Bank in writing of the additions or changes.

 

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4.             General
Representations, Warranties and Covenants. The Grantor represents, warrants and covenants to the Bank that: (a) all information,
including its type of organization, jurisdiction of organization, chief executive office, and (for individuals only) principal residence
are as set forth on Exhibit “A” hereto and are true and correct on the date hereof, (b) if the Grantor is an individual, the
Grantor’s name in this Agreement is identical to the Grantor’s name indicated on an unexpired driver’s license issued
to the Grantor by the state of the Grantor’s principal residence, and the Grantor will continue to maintain such driver’s
license and notify the Bank of any changes in the Grantor’s name or the name indicated on such driver’s license; (c) the Grantor
has good, marketable and indefeasible title to the Collateral, has not made any prior sale, pledge, encumbrance, assignment or other disposition
of any of the Collateral, and the Collateral is free from all encumbrances and rights of setoff of any kind except the lien in favor of
the Bank created by this Agreement and other liens consented to in writing by the Bank; and (d) the Grantor will defend the Collateral
against all claims and demands of all persons at any time claiming the same or any interest therein.

 

5.             Grantor’s
Representations, Warranties and Covenants for Certain Collateral. The Grantor represents, warrants and covenants to the Bank as
follows:

 

(a)       From
time to time and at all reasonable times and upon notice to the Grantor, the Grantor will allow the Bank, by or through any of its officers,
agents, attorneys, or accountants, to examine or inspect the Collateral, and obtain valuations and audits of the Collateral, at the Grantor’s
expense, wherever located. The Grantor shall do, obtain, make, execute and deliver all such additional and further acts, things, deeds,
assurances and instruments as the Bank may require to vest in and assure to the Bank its rights hereunder and in or to the Collateral,
and the proceeds thereof, including waivers from landlords, warehousemen and mortgagees. 

 

(b)       The
Grantor will keep the Collateral in good order and repair at all times and immediately notify the Bank of any event causing a material
loss or decline in value of the Collateral, whether or not covered by insurance, and the amount of such loss or depreciation.

 

(c)       The
Grantor will only use or permit the Collateral to be used in accordance with all applicable federal, state, county and municipal laws
and regulations.

 

(d)       The
Grantor will have and maintain insurance at all times with respect to all Collateral against risks of fire (including so-called extended
coverage), theft, sprinkler leakage, and other risks (including risk of flood if any Collateral is maintained at a location in a flood
hazard zone) as the Bank may require, in such form, in such amount, for such period and written by such companies as may be satisfactory
to the Bank in its sole discretion. Each such casualty insurance policy shall contain a standard Lender’s Loss Payable Clause issued
in favor of the Bank under which all losses thereunder shall be paid to the Bank as the Bank’s interests may appear. Such policies
shall expressly provide that the requisite insurance cannot be altered or canceled without at least thirty (30) days’ prior written
notice to the Bank and shall insure the Bank notwithstanding the act or neglect of the Grantor. Upon the Bank’s demand, the Grantor
will furnish the Bank with duplicate original policies of insurance or such other evidence of insurance as the Bank may require. If the
Grantor fails to provide insurance as herein required, the Bank may, at its option, obtain such insurance and the Grantor will pay to
the Bank, on demand, the cost thereof. Proceeds of insurance may be applied by the Bank to reduce the Obligations or to repair or replace
Collateral, all in the Bank’s sole discretion.

 

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(e)       Each
account and general intangible is genuine and enforceable in accordance with its terms, no such account or general intangible will be
subject to any claim for credit, allowance or adjustment by any account debtor or any setoff, defense or counterclaim, and the Grantor
will defend the same against all claims, demands, setoffs and counterclaims at any time asserted. At the time any account or general intangible
becomes subject to this Agreement, such account or general intangible will be a good and valid account representing a bona fide sale of
goods or services by the Grantor and such goods will have been shipped to the respective account debtors or the services will have been
performed for the respective account debtors.

 

(f)       The
Grantor agrees after the occurrence and during the continuance of an Event of Default, that the Bank has the right to notify (on invoices
or otherwise) account debtors and other obligors or payors on any Collateral of its assignment to the Bank, and that all payments thereon
should be made directly to the Bank.

 

(g)       The
Grantor will, on the Bank’s demand, make notations on its books and records showing the Bank’s security interest and make
available to the Bank shipping and delivery receipts evidencing the shipment of the goods that gave rise to an account, completion certificates
or other proof of the satisfactory performance of services that gave rise to an account, a copy of the invoice for each account and copies
of any written contract or order from which an account arose. The Grantor will promptly notify the Bank if an account becomes evidenced
or secured by an instrument or chattel paper and upon the Bank’s request, will promptly deliver any such instrument or chattel paper
to the Bank, including any letter of credit delivered to the Grantor to support a shipment of inventory by the Grantor.

 

(h)       The
Grantor will promptly advise the Bank whenever an account debtor refuses to retain or returns any goods from the sale of which an account
arose and will comply with any instructions that the Bank may give regarding the sale or other disposition of such returns. From time
to time with such frequency as the Bank may request, the Grantor will report to the Bank all credits given to account debtors on all
accounts. 

 

(i)       The
Grantor will immediately notify the Bank if any account arises out of contracts with the United States or any department, agency or instrumentality
thereof, and will execute any instruments and take any steps required by the Bank so that all monies due and to become due under such
contract shall be assigned to the Bank and notice of the assignment given to and acknowledged by the appropriate government agency or
authority under the Federal Assignment of Claims Act.

 

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(j)       At
any time after the occurrence of an Event of Default, and without notice to the Grantor, the Bank may direct any persons who are indebted
to the Grantor on any Collateral consisting of accounts or general intangibles to make payment directly to the Bank of the amounts due,
and the Bank may notify the United States Postal Service to send the Grantor’s mail to the Bank. The Bank is authorized to collect,
compromise, endorse and sell any such Collateral in its own name or in the Grantor’s name and to give receipts to such account debtors
for any such payments and the account debtors will be protected in making such payments to the Bank. Upon the Bank’s written request
at any time after the occurrence of an Event of Default, the Grantor will establish with the Bank and maintain a lockbox account (“Lockbox”)
with the Bank and a depository account(s) (“Cash Collateral Account”) with the Bank subject to the provisions of this subparagraph
and such other related agreements as the Bank may require, and the Grantor shall notify its account debtors to remit payments directly
to the Lockbox. Thereafter, funds collected in the Lockbox shall be transferred to the Cash Collateral Account, and funds in the Cash
Collateral Account shall be applied by the Bank, daily, to reduce the outstanding Obligations.

 

6.             Negative
Pledge; No Transfer. Without the Bank’s prior written consent, the Grantor will not sell or offer to sell or otherwise transfer
(including, without limitation, any transfer resulting from a division of the Grantor into two or more entities) or grant or allow the
imposition of a lien, security interest or right of setoff upon the Collateral (except for sales of inventory and collections of accounts
in the Grantor’s ordinary course of business and except for liens permitted by the Bank pursuant to the terms of that certain Loan
Agreement dated on or about the date hereof between the Grantor and the Bank, as the same may be amended, modified or restated from time
to time), will not allow any third party to gain control of all or any part of the Collateral, and will not use any portion of the Collateral
in any manner inconsistent with this Agreement or with the terms and conditions of any policy of insurance thereon.

 

7.             Further
Assurances. By its signature hereon, the Grantor hereby irrevocably authorizes the Bank to file against the Grantor one or more
financing, continuation or amendment statements pursuant to the UCC in form satisfactory to the Bank, and the Grantor will pay the cost
of preparing and filing the same in all jurisdictions in which such filing is deemed by the Bank to be necessary or desirable in order
to perfect, preserve and protect its security interests. If required by the Bank, the Grantor will execute all documentation necessary
for the Bank to obtain and maintain perfection of its security interests in the Collateral. At the Bank’s request, the Grantor will
execute, in form satisfactory to the Bank, a Rider to Security Agreement - Copyrights (if any Collateral consists of registered or unregistered
copyrights), a Rider to Security Agreement - Patents (if any Collateral consists of patents or patent applications), a Rider to Security
Agreement - Trademarks (if any Collateral consists of trademarks, tradenames, tradestyles or trademark applications). If any Collateral
consists of letter of credit rights, electronic chattel paper, deposit accounts or supporting obligations not maintained with the Bank
or one of its affiliates, or any securities entitlement, securities account, commodities account, commodities contract or other investment
property, then at the Bank’s request the Grantor will execute, and will cause the depository institution or securities intermediary
upon whose books and records the ownership interest of the Grantor in such Collateral appears, to execute such Pledge Agreements, Notification
and Control Agreements or other agreements as the Bank deems necessary in order to perfect, prioritize and protect its security interest
in such Collateral, in each case in a form satisfactory to the Bank.

 

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8.             Events
of Default. The Grantor shall, at the Bank’s option, be in default under this Agreement upon the happening of any of the
following events or conditions (each, an “Event of Default”): (a) any Event of Default (as defined in any of the Obligations);
(b) any default under any of the Obligations that does not have a defined set of “Events of Default” and the lapse of any
notice or cure period provided in such Obligations with respect to such default; (c) demand by the Bank under any of the Obligations
that have a demand feature; (d) the failure by the Grantor to perform any of its obligations under this Agreement; provided, however,
that, no such failure to observe or perform any such covenant or other agreement shall constitute an Event of Default unless such failure
continues for a period of 30 days after the earlier to occur of (a) the date when the Grantor becomes aware of such failure and (b) the
date when the Bank gives written notice to the Grantor of such failure; (e) falsity, inaccuracy or material breach by the Grantor of
any written warranty, representation or statement made or furnished to the Bank by or on behalf of the Grantor; (f) an uninsured material
loss, theft, damage, or destruction to any of the Collateral, or the entry of any judgment against the Grantor or any lien against or
the making of any levy, seizure or attachment of or on the Collateral; (g) the failure of the Bank to have a perfected first priority
security interest in the Collateral; (h) any indication or evidence received by the Bank that the Grantor may have directly or indirectly
been engaged in any type of activity which, in the Bank’s discretion, might result in the forfeiture of any property of the Grantor
to any governmental entity, federal, state or local; or (i) if the Bank otherwise deems itself insecure. 

 

9.             Remedies.
Upon the occurrence of any such Event of Default and at any time thereafter, the Bank may declare all Obligations secured hereby immediately
due and payable and shall have, in addition to any remedies provided herein or by any applicable law or in equity, all the remedies of
a secured party under the UCC. The Bank’s remedies include, but are not limited to, the right to (a) peaceably by its own means
or with judicial assistance enter the Grantor’s premises and take possession of the Collateral without prior notice to the Grantor
or the opportunity for a hearing, (b) render the Collateral unusable, (c) dispose of the Collateral on the Grantor’s premises, and
(d) require the Grantor to assemble the Collateral and make it available to the Bank at a place designated by the Bank. The Grantor agrees
that the Bank has full power and authority to collect, compromise, endorse, sell or otherwise deal with the Collateral in its own name
or that of the Grantor at any time upon an Event of Default. Unless the Collateral is perishable or threatens to decline speedily in value
or is of a type customarily sold on a recognized market, the Bank will give the Grantor reasonable notice of the time and place of any
public sale thereof or of the time after which any private sale or any other intended disposition thereof is to be made. The requirements
of commercially reasonable notice shall be met if such notice is sent to the Grantor at least ten (10) days before the time of the intended
sale or disposition. Expenses of retaking, holding, preparing for disposition, disposing or the like shall include the Bank’s reasonable
attorneys’ fees and legal expenses, incurred or expended by the Bank to enforce any payment due it under this Agreement either as
against the Grantor, or in the prosecution or defense of any action, or concerning any matter growing out of or connection with the subject
matter of this Agreement and the Collateral pledged hereunder. The Grantor waives all relief from all appraisement or exemption laws now
in force or hereafter enacted.

 

10.             Power
of Attorney. The Grantor does hereby make, constitute and appoint any officer or agent of the Bank as the Grantor’s true
and lawful attorney-in-fact, with power to (a) endorse the name of the Grantor or any of the Grantor’s officers or agents upon any
notes, checks, drafts, money orders, or other instruments of payment or Collateral that may come into the Bank’s possession in full
or part payment of any Obligations; (b) sue for, compromise, settle and release all claims and disputes with respect to, the Collateral;
and (c) sign, for the Grantor, such documentation required by the UCC, or supplemental intellectual property security agreements; granting
to the Grantor’s said attorney full power to do any and all things necessary to be done in and about the premises as fully and effectually
as the Grantor might or could do. The Grantor hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof.
This power of attorney is coupled with an interest, and is irrevocable.

 

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11.             Payment
of Expenses. At its option, the Bank may discharge taxes, liens, security interests or such other encumbrances as may attach to
the Collateral, may pay for required insurance on the Collateral and may pay for the maintenance, appraisal or reappraisal, and preservation
of the Collateral, as determined by the Bank to be necessary. The Grantor will reimburse the Bank on demand for any payment so made or
any expense incurred by the Bank pursuant to the foregoing authorization, and the Collateral also will secure any advances or payments
so made or expenses so incurred by the Bank.

 

12.             Notices.
All notices, demands, requests, consents, approvals and other communications required or permitted hereunder (“Notices”)
must be in writing (except as otherwise provided in this Agreement) and will be effective upon receipt. Notices may be given in any manner
to which the parties may separately agree. Without limiting the foregoing, first-class mail, postage prepaid, facsimile transmission
and commercial courier service are hereby agreed to as acceptable methods for giving Notices. In addition, the parties agree that Notices
may be sent electronically to any electronic address provided by a party from time to time. Notices may be sent to a party’s address
as set forth above or to such other address as any party may give to the other for such purpose in accordance with this section. 

 

13.             Preservation
of Rights. No delay or omission on the Bank’s part to exercise any right or power arising hereunder will impair any such
right or power or be considered a waiver of any such right or power, nor will the Bank’s action or inaction impair any such right
or power. The Bank’s rights and remedies hereunder are cumulative and not exclusive of any other rights or remedies which the Bank
may have under other agreements, at law or in equity.

 

14.             Illegality.
If any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, it shall not affect or impair
the validity, legality and enforceability of the remaining provisions of this Agreement.

 

15.             Changes
in Writing. No modification, amendment or waiver of, or consent to any departure by the Grantor from, any provision of this Agreement
will be effective unless made in a writing signed by the Bank, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. Notwithstanding the foregoing, the Bank may modify this Agreement for the purposes of completing
missing content or correcting erroneous content, without the need for a written amendment, provided that the Bank shall send a copy of
any such modification to the Grantor (which notice may be given by electronic mail). No notice to or demand on the Grantor will entitle
the Grantor to any other or further notice or demand in the same, similar or other circumstance.

 

16.             Entire
Agreement. This Agreement (including the documents and instruments referred to herein) constitutes the entire agreement and supersedes
all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.

 

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17.             Counterparts.
This Agreement may be signed in any number of counterpart copies and by the parties hereto on separate counterparts, but all such copies
shall constitute one and the same instrument. Delivery of an executed counterpart of signature page to this Agreement by facsimile transmission
shall be effective as delivery of a manually executed counterpart. Any party so executing this Agreement by facsimile transmission shall
promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart
executed by facsimile transmission.

 

18.             Electronic
Signatures and Records. Notwithstanding any other provision herein, the Grantor agrees that this Agreement, any other amendments
thereto and any other information, notice, signature card, agreement or authorization related thereto (each, a “Communication”)
may, at the Bank’s option, be in the form of an electronic record. Any Communication may, at the Bank’s option, be signed
or executed using electronic signatures. For the avoidance of doubt, the authorization under this Section may include, without limitation,
use or acceptance by the Bank of a manually signed paper Communication which has been converted into electronic form (such as scanned
into PDF format) for transmission, delivery and/or retention.

 

19.             Successors
and Assigns. This Agreement will be binding upon and inure to the benefit of the Grantor and the Bank and their respective heirs,
executors, administrators, successors and assigns; provided, however, that the Grantor may not assign this Agreement in whole or in part
without the Bank’s prior written consent and the Bank at any time may assign this Agreement in whole or in part.

 

20.             Interpretation.
In this Agreement, unless the Bank and the Grantor otherwise agree in writing, the singular includes the plural and the plural the
singular; words importing any gender include the other genders; references to statutes are to be construed as including all statutory
provisions consolidating, amending or replacing the statute referred to; the word “or” shall be deemed to include “and/or”,
the words “including”, “includes” and “include” shall be deemed to be followed by the words “without
limitation”; references to articles, sections (or subdivisions of sections) or exhibits are to those of this Agreement; and references
to agreements and other contractual instruments shall be deemed to include all subsequent amendments and other modifications to such
instruments, but only to the extent such amendments and other modifications are not prohibited by the terms of this Agreement. Section
headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other
purpose. Unless otherwise specified in this Agreement, all accounting terms shall be interpreted and all accounting determinations shall
be made in accordance with GAAP. If this Agreement is executed by more than one Grantor, the obligations of such persons or entities
will be joint and several. 

 

21.             Indemnity.
The Grantor agrees to indemnify each of the Bank, each legal entity, if any, who controls, is controlled by or is under common control
with the Bank, and each of their respective directors, officers and employees (the “Indemnified Parties”), and to defend and
hold each Indemnified Party harmless from and against any and all claims, damages, losses, liabilities and expenses (including all fees
and charges of internal or external counsel with whom any Indemnified Party may consult and all expenses of litigation and preparation
therefor) which any Indemnified Party may incur or which may be asserted against any Indemnified Party by any person, entity or governmental
authority (including any person or entity claiming derivatively on behalf of the Grantor), in connection with or arising out of or relating
to the matters referred to in this Agreement or the Obligations, whether (a) arising from or incurred in connection with any breach of
a representation, warranty or covenant by the Grantor, or (b) arising out of or resulting from any suit, action, claim, proceeding or
governmental investigation, pending or threatened, whether based on statute, regulation or order, or tort, or contract or otherwise, before
any court or governmental authority; provided, however, that the foregoing indemnity agreement shall not apply to any claims, damages,
losses, liabilities and expenses solely attributable to an Indemnified Party’s gross negligence or willful misconduct. The indemnity
agreement contained in this Section shall survive the termination of this Agreement, payment of the Obligations and the assignment of
any rights hereunder. The Grantor may participate at its expense in the defense of any such claim.

 

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22.             Governing
Law and Jurisdiction. This Agreement has been delivered to and accepted by the Bank and will be deemed to be made in the State
where the Bank’s office indicated above is located. THIS AGREEMENT WILL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE
PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE WHERE THE BANK’S OFFICE INDICATED ABOVE IS LOCATED, INCLUDING
WITHOUT LIMITATION THE ELECTRONIC TRANSACTIONS ACT (OR EQUIVALENT) IN SUCH STATE (OR, TO THE EXTENT CONTROLLING, THE LAWS OF THE UNITED
STATES OF AMERICA, INCLUDING WITHOUT LIMITATION THE ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT), EXCEPT THAT THE LAWS OF
THE STATE WHERE ANY COLLATERAL IS LOCATED (IF DIFFERENT FROM THE STATE WHERE SUCH OFFICE OF THE BANK IS LOCATED) SHALL GOVERN THE CREATION,
PERFECTION, ENFORCEMENT AND FORECLOSURE OF THE LIENS CREATED HEREUNDER ON SUCH PROPERTY OR ANY INTEREST THEREIN. The Grantor hereby
irrevocably consents to the exclusive jurisdiction of any state or federal court in the county or judicial district where the Bank’s
office indicated above is located; provided that nothing contained in this Agreement will prevent the Bank from bringing any action, enforcing
any award or judgment or exercising any rights against the Grantor individually, against any security or against any property of the Grantor
within any other county, state or other foreign or domestic jurisdiction. The Bank and the Grantor agree that the venue provided above
is the most convenient forum for both the Bank and the Grantor. The Grantor waives any objection to venue and any objection based on a
more convenient forum in any action instituted under this Agreement.

 

 

 

 

 

 

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

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23.       WAIVER
OF JURY TRIAL. EACH OF THE GRANTOR AND THE BANK IRREVOCABLY WAIVES ANY AND ALL RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS AGREEMENT, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE GRANTOR AND THE BANK ACKNOWLEDGE THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY.

The Grantor acknowledges that it has read and
understands all the provisions of this Agreement, including the waiver of jury trial, and has been advised by counsel as necessary or
appropriate.

 

WITNESS the due execution hereof as a document under seal, as
of the date first written above.

 

 

	 	VERIFYME, INC.
	 	 
	 	 	 
	 	By:   	/s/ Patrick White
	 		(SEAL)
	 	 
	 	Patrick White, Chief Executive Officer
	 	 	 
	 	 	 
	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION
	 	 	 
	 	 	 
	 	By: 	/s/ Zachary Bullock
	 		(SEAL)
	 	 
	 	Zachary Bullock, Senior Vice President

 

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EXHIBIT “A”

TO SECURITY AGREEMENT

 

 

	1.	 	Grantor’s form of organization (i.e., corporation, partnership, limited liability company): 
	 	 	 
	 	 	Corporation
	 	 	 

	2.	 	Grantor’s State of organization, if a registered organization (i.e., corporation, limited partnership, limited liability company):
	 	 	 
	 	 	Nevada

	 	 	 
	3.	 	Grantor’s principal residence, if a natural person or general partnership: 
	 	 	 
	 	 	N/A
		 	

	4.	 	Address of Grantor’s chief executive office:
	 	 	 
	 	 	CLINTON SQUARE, 75 S CLINTON AVE STE 510, ROCHESTER,
NY 14604-1710

	 	 	 
	5.	 	Grantor’s organizational ID# (if any exists): 
	 	 	 
	 	 	C28190-1999
	 	 	 

	6.	 	Address for books and records, if different:
	 	 	 
	 	 	 
	 	 	 

	7.	 	Addresses of other Collateral locations, including Counties, for the past five (5) years:
	 	 	 
	 	 	 
	 	 	 

	8.	 	Name and address of landlord or owner if location is not owned by the Grantor: 
	 	 	 
	 	 	N/A
	 	 	 

	9.	 	Other names or tradenames now or formerly used by the Grantor:
	 	 	 
	 	 	N/A
	 	 	 

	10.	 	Description of Equipment:
	 	 	 
	 	 	All Equipment of the Grantor.

 

 

11AMERCO,
Issuer 

             

            to 

             

            U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
Trustee 

             

            _____________________

             

            FORTY-SIXTH SUPPLEMENTAL
INDENTURE 

             

            Dated as of
September 27, 2022

             

            TO 

             

            U-HAUL INVESTORS CLUB INDENTURE 

             

            Dated as of
February 14, 2011

             

            _____________________

             

            FIXED RATE SECURED NOTES SERIES UIC-12L, 13L, 14L, 15L, 16L, 17L, 18L, 19L, 20L, and 21L

            

        
            

            

        

        

        

        
        
            

        

            THIS FORTY-SIXTH SUPPLEMENTAL INDENTURE, dated as of September 27, 2022 (the “Supplemental Indenture”), is entered into between AMERCO, a corporation duly organized and existing under the laws of the State of Nevada (hereinafter called the “Company”), having its principal executive office located at 5555 Kietzke Lane, Suite 100, Reno, Nevada 89511, and U.S. Bank Trust Company, National Association, a national banking association as successor in interest to U.S. Bank National Association (hereinafter called the “Trustee”).  

            RECITALS

            The Company and the Trustee entered into the U-Haul Investors Club Indenture, dated as of February 14, 2011 (the “Base Indenture”, and together with the Supplemental Indenture, the “Indenture”), to provide for the issuance by the Company from time to time of its debentures, notes or other evidences of indebtedness (hereinafter called the “Securities”), unlimited as to principal amount, to bear such rates of interest, to mature at such time or times, to be issued in one or more series.  

            The Company has duly authorized, and desires to cause to be established, a series of its notes to be known as its “Fixed Rate Secured Notes Series UIC-12L, 13L, 14L, 15L, 16L, 17L, 18L, 19L, 20L and 21L” (the “Notes”), the form and substance of and the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and this Supplemental Indenture.

             

            The Board of Directors of the Company has duly authorized the issuance of the Notes and the other amendments to the Indenture provided for in this Supplemental Indenture, and has authorized the proper officers of the Company to execute any and all appropriate documents necessary or appropriate to effect each such issuance.

            This Supplemental Indenture is being entered into pursuant to the provisions of Sections 3.01 and 9.01 of the Base Indenture.  All terms used in this Supplemental Indenture that are not otherwise defined herein will have the meanings assigned to such terms in the Base Indenture.

            The Company has requested that the Trustee execute and deliver this Supplemental Indenture, and do all things necessary to make this Supplemental Indenture a valid agreement of the Company, in accordance with its terms.

            NOW THEREFORE, in consideration of the premises and the purchase and acceptance of the Notes by the Holders thereof, and for the purpose of setting forth, as provided in the Indenture, the forms and terms of the Notes, the Company covenants and agrees, with the Trustee, as follows:

            Article one

            GENERAL TERMS AND CONDITIONS OF THE NOTES

            Section 1.01   Designation.

            The Notes, designated as the “Fixed Rate Secured Notes Series UIC-12L, 13L, 14L, 15L, 16L, 17L, 18L, 19L, 20L and 21L” are hereby authorized and established as a series of Securities under the Indenture.

        
            

                 

            

        

        

        
        
            

        

            Section 1.02   Form and Denomination of Notes.

            The Notes will be issued as Book-entry Securities.  Therefore, the Notes will not be certificated, and will be registered in the name of the Holders in book-entry form only with the Securities Registrar.  For the avoidance of doubt, the Notes will be issued without coupons, and all references to “Global Securities”, “Bearer Securities” and “Coupons” do not apply to the Notes and will be disregarded.

            The Notes will be issued in denominations of $100 and integral multiples of $100 in excess thereof.  

            The Notes will be issued over a period of time and from time to time, in three separate series, with each series having one or more separate sub-series bearing a unique interest rate and term as provided herein.  Prospective investors shall have the opportunity to select the sub-series of the Notes for which such prospective investor is subscribing.   As sub-series of the Notes are issued, the Company shall so notify the Trustee.  Such notification shall set forth the following, with respect to each such sub-series so issued:  the issue date; the dollar-amount funded; the sub-series number; identification of the Collateral; the maturity date; and the aggregate principal amount of the Notes previously issued.   

            Section 1.03   Principal, Maturity and Interest; Payment Amortization Schedule.

            Each series of notes may be issued in subseries, and each such subseries may have a different term and interest rate than the term and interest rate issued under other series or subseries.   

             

            Notes issued under the following terms shall have the following respective interest rates:

            Terms Proposed interest rates for the new prospectus supplement

            2-Year term:  3.70%

            3-Year term:  3.85%

            4-Year term:  4.00%

            5-Year term:  4.10%

            6-Year term:  4.20%

            7-Year term:  4.30%

             

            Upon not less than ten (10) business days’ prior written notice which we may provide on our uhaulinvestorsclub.com website, the Company shall have the right to change the interest rate of Notes prior to their issuance from time to time, in the Company’s sole discretion.  In such event, prospective investors have the right to cancel their Note subscription in their sole discretion prior to investing in the applicable Notes.      

            The Notes shall have such other terms as are stated herein, in the form of definitive Notes or in the Indenture.  

             

            As Notes are offered, prospective investors shall have the opportunity to select the series and sub-series of Notes for which such prospective investor is subscribing.   Each of the series of Notes (including all sub-series of Notes issued under their respective series) shall bear a term and corresponding initial interest rate to be determined by Company management prior to the closing

        
            

                 

            

        

        

        
        
            

        

             of the first subseries of Notes under such Note series, in accordance with the terms immediately above.  

                

            The Notes are fully amortizing.   Principal and interest on the notes will be credited to each holder’s U-Haul Investors Club® account in arrears every three months, beginning three months from the issue date of the first subseries of notes issued to any investor under such respective subseries, and shall be based on the actual number of days the holder is invested in such notes during such quarter.

             

            The Regular Record Date for installments of principal and interest payments on the Notes is the first day of the month preceding the related Credit Date; provided, however, that if a Credit Date falls on a day that is not a Business Day, the required installment payment of principal and interest will be made on the next Business Day as if made on the applicable Credit Date, and no interest will accrue on that payment for the period from and after the applicable Credit Date to the next Business Day.

            Section 1.04   Limit on Amounts of Series:   

            Each series of notes shall be limited in aggregate principal amount as indicated immediately below:

             

             

            - Series UIC-12L Maximum aggregate principal amount: $300,000

            - Series UIC-13L Maximum aggregate principal amount: $316,100

            - Series UIC-14L Maximum aggregate principal amount: $259,000

            - Series UIC-15L Maximum aggregate principal amount: $260,000

            - Series UIC-16L Maximum aggregate principal amount: $260,000

            - Series UIC-17L Maximum aggregate principal amount: $261,000

            - Series UIC-18L Maximum aggregate principal amount: $263,000

            - Series UIC-19L Maximum aggregate principal amount: $263,000

            - Series UIC-20L Maximum aggregate principal amount: $264,000

            - Series UIC-21L Maximum aggregate principal amount: $265,000

             

            Section 1.05   Ranking.

            The Notes are the obligations of the Company only.  The Notes are not guaranteed by any of the Company’s Subsidiaries or Affiliates, and will be structurally subordinated to all of the existing and future liabilities of the Company’s Subsidiaries.  The Notes are secured in the Collateral (as defined in Section 1.06 below) and will rank equally among themselves.

            Section 1.06   Security Agreement; Events of Default.

            The Company, the Trustee and the Company’s applicable affiliate(s), will enter into a Pledge and Security Agreement, substantially in the form attached hereto as Exhibit A (the “Pledge and Security Agreement”), concurrently with the execution of this Supplemental Indenture.  The Trustee is hereby directed to execute the Pledge and Security Agreement and to perform its duties as specified therein.  

        
            

                 

            

        

        

        
        
            

        

             

            Pursuant to the Pledge and Security Agreement and related financing statements, each of the series of Notes shall be secured by the following Collateral, as the initial Collateral for such series, subject to collateral removal as provided herein:

             

            Subject to our right to remove collateral as provided herein, the Notes issued under the following individual Series will be secured, respectively, by a first-priority undivided security interest and lien on specified U-Haul® equipment as discussed herein.  The Notes issued under UIC-12L, 13L, 14L, 15L, 16L, 17L, 18L, 19L, 20L and 21L are not cross-collateralized or cross-defaulted to one another.  

             

             

             

            UIC-12L up to 5,356 specified U-Haul® Furniture Dollies, manufactured in fiscal year 2021

            UIC-13L up to 5,644 specified U-Haul® Furniture Dollies, manufactured in fiscal year 2021

            UIC-14L up to 259 specified U-Haul® AV trailers manufactured between the years 1990 and 2010

            UIC-15L up to 260 specified U-Haul® AV trailers manufactured between the years 1990 and 2010

            UIC-16L up to 260 specified U-Haul® AV trailers manufactured between the years 1990 and 2010

            UIC-17L up to 261 specified U-Haul® AV trailers manufactured between the years 1990 and 2010

            UIC-18L up to 263 specified U-Haul® AV trailers manufactured between the years 1990 and 2010

            UIC-19L up to 263 specified U-Haul® AV trailers manufactured between the years 1990 and 2010

            UIC-20L up to 264 specified U-Haul® AV trailers manufactured between the years 1990 and 2010

            UIC-21L up to 265 specified U-Haul® AV trailers manufactured between the years 1990 and 2010

             

            In the event of such removal of Collateral, there shall be no additional repayment of principal on the notes and there will be no addition of further or substitution collateral to the respective Series.  The value of the Collateral at any time will depend on market and other economic conditions, including the availability of suitable buyers for the Collateral. 

             

            No appraisal of the Collateral has been or will be prepared by us or on our behalf in connection with this offering. The series of Notes hereunder are not cross-defaulted or cross-collateralized to one another.  Accordingly, a default by AMERCO under one series of Notes shall not trigger a default under any other series of Notes hereunder or under any other obligation of AMERCO or its affiliates.  Additionally, the collateral pledged to secure one series of Notes hereunder shall not secure the other series of Notes hereunder.  The equity of one property or item of Collateral will not serve as security for any series of Notes other than the series of Notes under which such property or item of Collateral has been pledged.  

            As new sub-series of the Notes are issued, or as additional Notes are issued under a given sub-series of the Notes, new schedules to the Pledge and Security Agreement will be added thereto and provided to the Trustee, to identify the specific Collateral being pledged under such sub-series of the Notes.  Pursuant to the Pledge and Security Agreement, the Collateral is being pledged by Pledgor to the Trustee, for the benefit of the Holders of the Notes.  Subject to certain conditions set forth therein, the Company has the right, in its sole discretion, to make Collateral substitutions.  The Pledge and Security Agreement describes, without limitation, the Company’s right to make Collateral substitutions and the release of the Trustee’s security interest in the Collateral.  

        
            

                 

            

        

        

        
        
            

        

            With respect to the Notes, “Event of Default”, in addition to the meaning given in Section 5.01 of the Base Indenture, shall include (i) the Company’s or Pledgor’s default in the performance, or breach of any covenant or representation and warranty in the Pledge and Security Agreement, and continuance of such default or breach (without such default or breach having been waived in accordance of the provisions of this Indenture) for a period of 90 days after there has been given, by registered or certified mail, to the Company and the Pledgor by the Trustee if it has notice or actual knowledge of such event of default or to the Company, the Pledgor and the Trustee by the Holders of at least 51% in principal amount of the Outstanding Notes a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” under the Indenture, (ii) the repudiation or disaffirmation by the Company or the Pledgor of its material obligations under the Pledge and Security Agreement, and (iii) the determination in a judicial proceeding that the Pledge and Security Agreement is unenforceable or invalid against the Pledgor for any reason with respect to a material portion of the Collateral.

            Section 1.07   Maturity Date.

            The Notes will mature the specified number of years as indicated in Section 1.03 herein following such Note’s respective issue date.  The schedules to the Pledge and Security Agreement shall set forth the different respective maturity dates of the Notes.  

            Section 1.08   Further Issues.

            Without the consent of Holders of not less than 51% of the principal amount of the outstanding Notes, the Company will not issue additional Notes secured by the Collateral.  However, the Company has the right, from time to time, without the consent of the Holders of the Notes, but in compliance with the terms of the Indenture, issue other Securities.

            Section 1.09   Optional Redemption; Sinking Fund.

            The Notes, including any sub-series thereof and any portion of any sub-series thereof, may be redeemed by the Company in its sole discretion at any time, in whole or in part, without any penalty, premium or fee, at a price equal to 100% of the principal amount then outstanding, plus accrued and unpaid interest, if any, through the date of redemption.  A partial redemption may be on a pro rata basis or on such other basis as is determined by the company in its sole discretion.  The Company will not be obligated to redeem fractions of Notes.   In the event of a redemption, the Company will cause notices of redemption to be emailed to the email address associated with each respective Holder’s U-Haul Investors Club account in accordance with the terms and conditions set forth in the Base Indenture.

            The Notes are not subject to any sinking fund, and the Company is not obligated to repay any principal and interest due on the Notes before such payments become due.  For the avoidance of doubt, Articles XII and XIII contained in the Indenture will not be applicable to the Notes.

            Section 1.10   Payment.

            Principal and interest payments on the Notes, including without limitation the payment due on each date of Stated Maturity with respect to the Notes, will be credited to each Holder’s U-Haul

        
            

                 

            

        

        

        
        
            

        

             Investors Club account, in U.S. dollars.  For the avoidance of doubt, Article XIV of the Indenture will not be applicable to the Notes. 

            Principal and interest payments on the Notes will be deposited by or on behalf of the Company into one or more segregated accounts maintained by Servicer (as defined in Section 1.16 below) (collectively, the “Investment Account”) with a third-party financial institution.  Servicer, on behalf of the Company, will maintain sub-accounts under the Investment Account for each Holder, which are referred to as “U-Haul Investors Club accounts”.  The U-Haul Investors Club accounts are record-keeping sub-accounts under the Investment Account that are purely administrative and reflect balances and transactions concerning the funds of each Holder with respect to the Notes.  Funds in the Investment Account will always be maintained at an FDIC member financial institution.  

             

            Cash funds may remain in a Holder’s U-Haul Investors Club account indefinitely and will not earn interest.  Upon request by a Holder, made through the U-Haul Investors Club website and such Holder’s U-Haul Investors Club account, but subject to specified hold periods as disclosed in the Terms of Use, the Company will transfer, or will cause Servicer to transfer, funds in such Holder’s U-Haul Investors Club account to such Holder’s linked U.S. outside bank account, by a transfer through the ACH System, provided such funds are not already committed to the purchase of other Securities, or to offset any fees payable by such Holder, pursuant to the U-Haul Investors Club.    

            Section 1.11   Restrictions on Transfer.

            The Notes are not transferable except between members of the U-Haul Investors Club through privately negotiated transactions relating exclusively to non-qualified (non-retirement/non IRA) accounts, as to which neither the Company, the Servicer, the Trustee, nor any of their respective affiliates will have any involvement.  The Notes are not being listed on any securities exchange, there is no anticipated public market for the Notes, and it is unlikely that a secondary “over-the-counter” market for the notes will develop between bond dealers or bond trading desks at investment houses.  Transfers of the notes held in qualified accounts are not permissible, other than transfers constituting Required Minimum Distributions (RMD).  

            Upon a transfer of one or more Notes following a privately negotiated transaction with another member of the Company’s U-Haul Investors Club, the transferor the transferee and must notify the Company through the U-Haul Investors Club website.  Thereafter, the Company will recognize the transfer and re-register the applicable notes in the name of the transferee.  

            Section 1.12   Fees.  

            The Company will charge a transfer fee for a Note transfer permitted by Section 1.11 of this Supplemental Indenture equal to $25.00 per transaction, assessed to the transferor.  Such fee will be automatically deducted from the funds in such Holder’s U-Haul Investor Club account.

            Section 1.13   Company and Trustee Notices.

            Holders of the Notes agree to receive all documents, communications, notices, contracts, securities offering materials, account statements, agreements and tax documents, including IRS

        
            

                 

            

        

        

        
        
            

        

             Form 1099s, arising from the U-Haul Investors Club, or required to be delivered by the Indenture or any Security Documents applicable to the Notes, and to submit all documents, statements, communications, records and notices due from the Holders to the Company, electronically through the U-Haul Investors Club website and the Holders’ U-Haul Investors Club accounts.  In addition, the Security Registrar agrees to deliver on behalf of the Trustee, and the Holders of the Notes agree to receive, electronically through the U-Haul Investors Club website and the Holders’ U-Haul Investors Club accounts, all reports of the Trustee required to be delivered to the Holders of the Notes pursuant to the Indenture (including, without limitation, Section 7.03 of the Base Indenture) or any Security Documents applicable to the Notes.

            Section 1.14   Place of Payment.

            Notwithstanding anything contained in the Indenture to the contrary, no Place of Payment for the Notes shall be maintained by the Company.  The Notes may only be presented or surrendered for payment, surrendered for registration of transfer or exchange, or surrendered in connection with an optional redemption by the Company described in Section 1.09 of this Supplemental Indenture, electronically through the Company’s U-Haul Investors Club website.

            Section 1.15   Security Registrar and Paying Agent.

            The Security Registrar and Paying Agent shall be the Company’s Affiliate, U-Haul International, Inc., a Nevada corporation, or its designee (in such capacity, “Servicer”). 

            Section 1.16   Non-Applicable Provisions.

            The Notes will not (i) be convertible into and/or exchangeable for Common Stock or other securities or property, (ii) be issuable upon the exercise of warrants, or (iii) be guaranteed by any Person on the date of issuance.  The Company will not pay Additional Amounts on such Securities.  

            ARTICLE TWO

            ORIGINAL ISSUE OF NOTES

            Section 2.01   Original Issue of Notes.

            The Notes may, upon execution of this Supplemental Indenture, be issued by the Company in the form provided in Section 1.02.

            ARTICLE Three

            
MISCELLANEOUS

            Section 3.01   Arbitration.

            In the event that the Company, on the one hand, and one or more of the Holders, or the Trustee on behalf of one or more of the Holders, on the other hand, are unable to resolve any dispute, claim or controversy between them (“Dispute”) related to the Indenture, the Notes or the

        
            

                 

            

        

        

        
        
            

        

             U-Haul Investors Club, as applicable, such parties agree to submit the Dispute to binding arbitration in accordance with the following terms:

            (a)   Any party in its reasonable discretion may give written notice to the other applicable parties that the Dispute be submitted to arbitration for final resolution.  Within fifteen (15) calendar days after receipt of such notice, the receiving parties shall submit a written response.  If the Dispute remains following the exchange of the written notice and response, the parties involved in the Dispute shall mutually select one arbitrator within fifteen (15) calendar days of receipt of the response and shall submit the matter to that arbitrator to be settled in accordance with this Section 3.01(a).  If these parties cannot mutually agree on a single arbitrator during such fifteen (15) day period, these parties shall no later than the expiration of that fifteen (15) day period jointly submit the matter to the American Arbitration Association (“AAA”) for expedited arbitration proceedings to be conducted at the AAA offices, or at another mutually agreeable location, in Phoenix, Arizona pursuant to the Association Commercial Arbitration Rules then in effect (the “Rules”).  The AAA will follow the Rules to select a single arbitrator within fifteen (15) calendar days from the date the matter is jointly submitted to the AAA.  The arbitrator (whether selected by the parties or by the AAA) shall hold a hearing within forty-five (45) calendar days following the date that the arbitrator is selected and shall provide a timeline for the parties to submit arguments and supporting materials with sufficient advance notice to enable the arbitrator to hold the hearing within that forty-five (45) day period.  The arbitrator shall issue a tentative ruling with findings of fact and law within fifteen (15) calendar days after the date of the hearing.  The arbitrator shall provide the parties an opportunity to comment on the tentative ruling within a timeframe established by the arbitrator, provided that the arbitrator shall render a final ruling within thirty (30) calendar days after the date of the hearing.  The arbitrator shall have the authority to grant any equitable and legal remedies that would be available in any judicial proceeding to resolve a disputed claim, including, without limitations, the authority to impose sanctions, including attorneys’ fees and costs, to the same extent as a competent court of law or equity.

            (b)   The Company, Trustee and each of the Holders agree that judgment upon any award rendered by the arbitrator may be entered in the courts of the State of Arizona or in the United States District Courts located in Arizona.  Such court may enforce the provisions of this Section 3.01(b), and the party seeking enforcement shall be entitled to an award of all costs and fees, including reasonable attorneys’ fees, to be paid by the party against whom enforcement is ordered.  The parties involved in a Dispute may terminate any arbitration proceeding by mutually resolving any Dispute prior to the issuance of a final arbitration ruling pursuant to this Section 3.01. 

            (c)   For the avoidance of doubt, where a dispute arises related to the Indenture, the Notes, the U-Haul Investors Club or the Security Documents applicable to the Notes between (i) the Trustee and the Company (other than with respect to when the Trustee is acting on behalf of one or more of the Holders), (ii) the Trustee and one or more of the Holders, or (iii) the Trustee and any third party, then in no event will the arbitration provisions set forth in this Section 3.01 apply to such dispute.

            Section 3.02   Ratification of Indenture.

        
            

                 

            

        

        

        
        
            

        

            The Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture will be deemed part of the Indenture in the manner and to the extent herein and therein provided; provided that the provisions of this Supplemental Indenture apply solely with respect to the Notes and not to any other Securities that may be issued pursuant to the U-Haul Investors Club.  To the extent there is a conflict between the Indenture and this Supplemental Indenture with respect to the Notes, the terms of this Supplemental Indenture will govern.

            Section 3.03   Trustee Not Responsible for Recitals.

            The recitals herein contained are made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof.  The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture, the Pledge and Security Agreement or the Collateral (as defined in the Pledge and Security Agreement).

            Section 3.04   Governing Law.

            This Supplemental Indenture and the Notes will be governed by and construed in accordance with the laws of the State of New York.

            Section 3.05   Separability.

            In case any one or more of the provisions contained in this Supplemental Indenture, the Notes will for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provisions of this Supplemental Indenture or of the Notes, but this Supplemental Indenture and the Notes will be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

            Section 3.06   Counterparts.

            This Supplemental Indenture may be executed in any number of counterparts each of which will be an original; but such counterparts will together constitute but one and the same instrument.  This Supplemental Indenture will be effective when one or more counterparts has been signed by the parties hereto and delivered (including by electronic transmission) to the other parties.

            

        
            

                 

            

        

        

        

        
        
            

        

            [Signature page to Forty-sixth Supplemental Indenture, Series UIC-12L, 13L, 14L, 15L, 16L, 17L, 18L, 19L, 20L and 21L]

             

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

            AMERCO, as the Company

            By:  _______________________________
Name:  Jason A. Berg
Title:  Chief Financial Officer

            U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as the Trustee

            By:  _______________________________
Name:
Title: 

        
            

                 

            

        

        

        

        
        
            

        

            EXHIBIT A TO FORTY-SIXTH SUPPLEMENTAL
INDENTURE 

             

             

            PLEDGE AND SECURITY AGREEMENT

            THIS PLEDGE AND SECURITY AGREEMENT (this “Agreement”) is entered into as of September 27, 2022, by and among AMERCO, a Nevada corporation (the “Company”), its affiliate identified on the signature page hereto (such affiliates, collectively, the “Pledgor”), and U.S. Bank Trust Company, National Association, a national banking association as successor in interest to U.S. Bank National Association in its capacity as Trustee under the Indenture (the “Trustee”).

            RECITALS

            A.   Pursuant to the terms of the U-Haul Investors Club Indenture, dated as of February 14, 2011, by and between the Company and the Trustee (the “Base Indenture”), and the FORTY-SIXTH Supplemental Indenture relating to the Fixed Rate Secured Notes Series UIC-12L, 13L, 14L, 15L, 16L, 17L, 18L, 19L, 20L and 21L dated as of the date hereof, by and between the Company and the Trustee (the “Supplemental Indenture”; the Base Indenture and the Supplemental Indenture collectively the “Indenture”), the Company is authorized to issue from time to time a series of its notes to be known as its “Fixed Rate Secured Notes Series UIC-12L, 13L, 14L, 15L, 16L, 17L, 18L, 19L, 20L and 21L” (collectively the “Notes”), such Notes to be issued in sub-series over a period of time and from time to time, as determined by the Company.  Capitalized terms not defined in this Agreement shall have the meanings given to them in the Indenture.

            B.   Under the Indenture, a condition of issuance of the Notes is that the Company’s obligations under the Notes be secured by a first priority lien, equally and ratably, on specified assets owned by the applicable Pledgor (the “Collateral”).  The Collateral is described in Exhibit A hereto, as such Exhibit A shall be supplemented from time to time as provided herein.

             

            C.   The applicable Pledgor is willing to grant the Trustee, for the benefit of the holders of the Notes (the “Holders”), such first priority lien on such Collateral or portion thereof, on the terms and conditions set forth herein.

            NOW, THEREFORE, BE IT AGREED THAT:

            1.   Definitions and Terms.

            Definitions.  For purposes of this Agreement, the following terms shall have the following definitions:

            “Collateral” means (i) that portion of the property of the applicable Pledgor described in Exhibit A, as amended or supplemented from time in accordance with the terms hereof, which relates to the particular sub-series of the Notes in question, and (ii) all Proceeds of such property.

            “Company” shall include both of the named Company and any other Person at any time assuming or otherwise becoming primarily liable for all or any part of the Obligations under the

        
            

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             Financing Documents, including the trustee and the debtor‐in‐possession in any bankruptcy or similar proceeding involving the named Company.

            “Financing Documents” means this Agreement, the Indenture, the Notes and all other documents entered into by the Company or the Pledgor with respect to the Obligations. 

            “Insolvency Proceeding” means any proceeding commenced by or against any Person under any provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.

            “Lien” means any mortgage, deed of trust, deed to secure debt, pledge, hypothecation, assignment, deposit arrangement, security interest, lien, charge, easement, encumbrance, preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever on or with respect to such property or assets, conditional sale or other title retention agreement having substantially the same economic effect as any of the foregoing; provided that in no event shall an operating lease be deemed to constitute a Lien.

            “Obligations” means (i) all principal, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the Notes and the Indenture and all other obligations, liabilities and indebtedness of every kind, nature and description owing by the Company under the Notes and the Indenture, in each case whether now or hereafter existing, direct or indirect, absolute or contingent, due or not due, primary or secondary, liquidated or unliquidated, renewed or restructured, whether or not from time to time decreased or extinguished and later increased, including all such obligations which would become due but for the operation of the (A) automatic stay under Section 362(a) of the Bankruptcy Code, (B) Section 502(b) of the Bankruptcy Code, or (C) Section 506(b) of the Bankruptcy Code, including interest accruing under the Notes and the Indenture after the commencement of an Insolvency Proceeding, whether or not allowed or allowable as a claim in such Insolvency  Proceeding, and (ii) all other obligations, liabilities and indebtedness of every kind, nature and description owing by the Pledgor hereunder, in each case whether now or hereafter existing, direct or indirect, absolute or contingent, due or not due, primary or secondary, liquidated or unliquidated, renewed or restructured, whether or not from time to time decreased or extinguished and later increased, including all such obligations which would become due but for the operation of the (A) automatic stay under Section 362(a) of the Bankruptcy Code, (B) Section 502(b) of the Bankruptcy Code, or (C) Section 506(b) of the Bankruptcy Code, including interest accruing hereunder after the commencement of an Insolvency Proceeding, whether or not allowed or allowable as a claim in such Insolvency  Proceeding.

            “Permitted Liens” means Liens in favor of carriers, warehousemen, mechanics, suppliers, repairmen, materialmen and landlords and other similar Liens imposed by law, in each case for sums not overdue or being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against the Company, and easements granted in the ordinary course of business that do not have a material adverse impact upon the property in question. 

            “Proceeds” has the meaning specified in Section 9-102(a) of the UCC.

            “Required Holders” means the Holders of not less than a majority in principal amount of the Notes.

        
            

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            “UCC” means the Uniform Commercial Code, as in effect from time to time, of the State of New York or of any other state the laws of which are required as a result of such law to be applied in connection with perfection of security interests.

             

            2.   Other Terms.  All other capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 

             

            3.   Grant of Security Interest.  As an inducement for the Holders to purchase the Notes, and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all the Obligations with respect to any given sub-series of the Notes, the Pledgor hereby unconditionally and irrevocably pledges and grants to the Trustee, for the benefit of each Holder of each individual sub-series of the Notes that may be issued from time to time, and to the Trustee, a continuing security interest in and to, and a Lien against that portion of the Collateral identified in the applicable schedule hereto with respect to the applicable sub-series of the Notes for which such Holder is an investor.  The obligations of the Company with respect to each sub-series of the Notes will be initially secured by a first-priority lien, equally and ratably, on a specified pool of assets owned by Pledgor and identified on the applicable portion of Exhibit A hereto.  As new sub-series of the Notes are issued, or as additional Notes are issued under any given sub-series of the Notes, new schedules hereto will or may be added, to identify the specific Units of Collateral being pledged under such sub-series or further issuance of the Notes, to the extent applicable.  The Units of Collateral securing one sub-series of the Notes or securing an additional issuance of the Notes under a given sub-series, shall not serve as Collateral for other sub-series of the Notes or other issuances of Notes under the same sub-series.  Additionally, notwithstanding the foregoing, or any other term or provision herein to the contrary, Pledgor shall have the right, in Pledgor’s sole and absolute discretion, to remove from time to time Collateral from the lien created hereby, and in such event Pledgor shall not be required to supplement, substitute or otherwise add further Collateral hereunder or under any Series or Sub-series. 

             

            Once an initial investment has been made with us with respect to any individual Series of notes as specified above, we will grant and convey to the trustee, for the benefit of the noteholders, a first priority lien, as appropriate, on the respective Collateral, and such lien shall be promptly recorded in the office of the Secretary of State of Pledgor’s state of formation.  

             

            Notwithstanding any provision hereof or any of the other Financing Documents, none of the Company, the Pledgor or the Trustee has any obligation to maintain and keep the Collateral in good condition, repair and working order or to replace removed, lost, stolen, damaged or destroyed Collateral, or Collateral taken through condemnation, governmental taking, or deed or conveyance in lieu thereof.  There shall be no obligation to repay the Notes with proceeds from any taking, condemnation or deed in lieu thereof or in connection with a removal of Collateral at pledgor’s election.   

             

            4.   No Recourse to Pledgor.  The Pledgor’s grant of the Lien against the Collateral secured the prompt and punctual payment of the Obligations, whether at stated maturity, by acceleration

        
            

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             or otherwise, and is not merely a guaranty of collection from the Company.  The Pledgor has and shall have no personal liability or obligation with respect to payment of the Obligations, which are payable solely by the Company.

             

            5.   Perfection of Security Interest.  Pledgor hereby authorizes the Company to file or cause the filing, from time to time, of financing statements and any other collateral documents as may be necessary or appropriate, without notice to the Pledgor, with all appropriate jurisdictions to perfect or protect the Trustee’s interest or rights hereunder.  Pledgor shall take all actions reasonably requested by the Company to perfect and to give notice of the Trustee’s Lien against the Collateral.  To the extent perfection of the Trustee’s interest or rights hereunder requires the modification of one or more certificates of title, if any, representing the Collateral, upon the request from time to time by the Trustee, the Pledgor shall provide the Trustee with a list of all such certificates of title issued in electronic form by the relevant governmental department, as well as any applications for such certificates of title submitted with the relevant governmental department and such other information as the Pledgor has in its possession related to such certificates of title.

             

            6.   Release of Security Interest; Substitution of Collateral.  The Trustee’s Lien against any equipment or property constituting Collateral shall be automatically released upon (i) the sale or other disposition of such equipment or property to a buyer in the ordinary course of business, in accordance with Section 9-320 of the UCC, (ii) a casualty loss of such equipment or property, provided that the Trustee’s Lien attaches to the Proceeds, if any, of such disposition or loss; or (iii) any removal of Collateral done by Pledgor, which may be done in Pledgor’s sole discretion.  In such event, such equipment shall automatically no longer constitute Collateral hereunder.   The Company shall exercise such right by delivering to the Trustee an officers’ certificate in the form attached hereto as Exhibit B (the “Officers’ Certificate”), which shall provide the Trustee with notice of the equipment, property or Proceeds constituting Collateral for which the Trustee’s Lien is requested to be released.   The Trustee, within five (5) days of receipt of the Company’s Officer’s Certificate, shall provide the Company and the Pledgor with a written notice acknowledging the release of Collateral under this Agreement.  The Company shall have the right to amend Exhibit A to reflect each release of any such equipment or property as Collateral hereunder.   The Company shall not be required to obtain any appraisal of equipment or property to be released from the Trustee’s Lien.  

             

            In addition, the Trustee’s Lien against any equipment or property constituting Collateral shall be released upon the repayment in full of all Obligations and the delivery by the Company to the Trustee of an officer’s certificate substantially in the form of Exhibit C hereto.   

            7.   Termination of Security Interest.  In addition to the provisions of Section 6 above, if this Agreement is terminated, the Trustee’s Lien in the Collateral with respect to any given sub-series of the Notes shall continue until the Obligations under such sub-series of the Notes are repaid in full.  Upon the crediting in full of the Obligations to each Holder’s U-Haul Investors Club

        
            

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             account with respect to any given sub-series or any additional issuance of the Notes under any given sub-series, and the termination of such sub-series or additional issuance of the Notes and payment to the Trustee of all amounts due and owing to it, the Trustee shall, at the Pledgor’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to the Pledgor.  

             

            8.   The Trustee’s Rights.  The Pledgor authorizes the Trustee, without giving notice to the Pledgor or obtaining the Pledgor’s consent and without affecting the Pledgor’s liability for the Obligations to the extent described herein, from time to time, to:

            a.   compromise, settle, renew, extend the time for payment, change the manner or terms of payment, discharge the performance of, decline to enforce, or release all or any of the Obligations; grant other indulgences to the Company in respect thereof; or modify in any manner any documents (other than this Agreement) relating to the Obligations, in each case (other than with respect to decisions not to enforce and to grant indulgences) in accordance with Financing Documents;

            b.   declare all Obligations due and payable upon the occurrence of an Event of Default;

            c.   take and hold security for the performance of the Obligations and exchange, enforce, waive and release any such security; 

            d.   apply and reapply such security and direct the order or manner of sale thereof as the Trustee, in its sole discretion, may determine;

            e.   release, surrender or exchange any deposits or other property securing the Obligations or on which the Trustee at any time may have a Lien; release, substitute or add any one or more endorsers or guarantors of the Obligations; or compromise, settle, renew, extend the time for payment, discharge the performance of, decline to enforce, or release all or any obligations of any such endorser or the Pledgor or other Person who is now or may hereafter be liable on any Obligations or release, surrender or exchange any deposits or other property of any such Person; and

            f.   apply payments received by the Trustee from the Company, if any, to any Obligations, in such order as the Trustee shall determine, in its sole discretion. 

            9.   The Pledgor’s Waivers.

            The Pledgor waives:

            a.   any defense based upon any legal disability or other defense of the Company, or by reason of the cessation or limitation of the Company’s liability from any cause (other than full payment of all Obligations), including failure of consideration, breach of warranty, statute of frauds, statute of limitations, accord and satisfaction, and usury;

            b.   any defense based upon any legal disability or other defense of any other Person;

        
            

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            c.   any defense based upon any lack of authority of the officers, directors or agents acting or purporting to act on behalf of the Company or any defect in the formation of the Company;

            d.  any defense based upon the application by the Company of the proceeds of the Notes for purposes other than the purposes represented by the Company to the Trustee or the Holders;

            e.   any defense based on the Pledgor’s rights, under statute or otherwise, to require the Trustee to sue the Company or otherwise to exhaust its rights and remedies against the Company or any other Person or against any other collateral before seeking to enforce this Agreement;

            f.   any defense based on the Trustee’s failure at any time to require strict performance by the Company of any provision of the Financing Documents or by the Pledgor of this Agreement.  The Pledgor agrees that no such failure shall waive, alter or diminish any right of the Trustee thereafter to demand strict compliance and performance therewith.  Nothing contained herein shall prevent the Trustee from foreclosing on the Lien of any other security agreement, or exercising any rights available to the Trustee thereunder, and the exercise of any such rights shall not constitute a legal or equitable discharge of the Pledgor; 

            g.   any defense arising from any act or omission of the Trustee which changes the scope of the Pledgor’s risks hereunder;

            h.   any defense based upon the Trustee’s election of any remedy against the Pledgor or the Company or both; any defense based on the order in which the Trustee enforces its remedies;

            i.   any defense based on (A) the Trustee’s surrender, release, exchange, substitution, dealing with or taking any additional collateral, (B) the Trustee’s abstaining from taking advantage of or realizing upon any Lien or other guaranty, and (C) any impairment of collateral securing the Obligations, including, but not limited to, the Company’s failure to perfect, or maintain the perfection or priority of, a Lien in such collateral;

            j.   any defense based upon the Trustee’s failure to disclose to the Pledgor any information concerning the Company’s financial condition or any other circumstances bearing on the Company’s ability to pay the Obligations;

            k.   any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any other respects more burdensome than that of a principal; 

            l.   any defense based upon the Trustee’s election, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code or any successor statute; 

            m.   any defense based upon any borrowing or any grant of a Lien under Section 364 of the Bankruptcy Code; 

        
            

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            n.   any defense based on the Trustee’s failure to be diligent or to act in a commercially reasonable manner, or to satisfy any other standard imposed on a secured party, in exercising rights with respect to collateral securing the Obligations;

            o.   notice of acceptance hereof; notice of the existence, creation or acquisition of any Obligation; notice of any Event of Default; notice of the amount of the Obligations outstanding from time to time; notice of any other fact which might increase the Pledgor’s risk; diligence; presentment; demand of payment; protest; filing of claims with a court in the event of the Company’s Insolvency Proceeding and all other notices and demands to which the Pledgor might otherwise be entitled (and agrees the same shall not have to be made on the Company as a condition precedent to the Pledgor’s obligations hereunder);

            p.   any defense based on the Trustee’s failure to seek relief from stay or adequate protection in the Company’s Insolvency Proceeding or any other act or omission by the Trustee which impairs Pledgor’s prospective subrogation rights;

            q.   any defense based on legal prohibition of the Trustee’s acceleration of the maturity of the Obligations during the occurrence of an Event of Default or any other legal prohibition on enforcement of any other right or remedy of the Trustee with respect to the Obligations and the security therefor; and 

            r.   the benefit of any statute of limitations affecting the Pledgor’s liability hereunder or the enforcement hereof.

            The Pledgor agrees that the payment of all sums payable under the Financing Documents or any part thereof or other act which tolls any statute of limitations applicable to the Financing Documents shall similarly operate to toll the statute of limitations applicable to Pledgor’s liability hereunder.

            10.   Subrogation.  The Pledgor shall not exercise any rights which it may acquire by reason of any payment of the Obligations made hereunder through enforcement of the Lien against any of the Collateral, whether by way of subrogation, reimbursement or otherwise, until (i) the prior payment, in full and in cash, of all Obligations and (ii) the termination of the Notes.  

            11.   The Pledgor’s Representations and Warranties.  The Pledgor represents and warrants to the Trustee that:

            a.   The Pledgor’s name as of the date hereof as it appears in official filings in the state of its incorporation is as set forth on the applicable signature page hereto with respect to such Pledgor.   

            b.   the Pledgor’s execution, delivery and performance of this Agreement (i) do not contravene any law or any contractual restriction binding on or affecting the Pledgor or by which the Pledgor’s assets may be affected; and (ii) do not require any authorization or approval or other action by, or any notice to or filing with, any other Person except such as have been obtained or made;

        
            

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            c.   there are no conditions precedent to the effectiveness of this Agreement, and this Agreement shall be in full force and effect and binding on the Pledgor as of the date hereof, regardless of whether the Trustee or the Holders obtain collateral or any guaranties from other Persons or takes any other action contemplated by the Pledgor; 

            d.   this Agreement constitutes the legal, valid and binding obligation of the Pledgor, enforceable in accordance with its terms, except as the enforceability thereof may be subject to or limited by bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws relating to or affecting the rights of creditors generally and by general principles of equity; and

            e.   the Pledgor has established adequate means of obtaining from sources other than the Trustee, on a continuing basis, financial and other information pertaining to the Company’s financial condition and the status of Company’s performance of obligations imposed by the Financing Documents, and the Pledgor agrees to keep adequately informed from such means of any facts, events or circumstances which might in any way affect the Pledgor’s risks hereunder and neither the Trustee nor any of the Holders has made any representation or warranty to the Pledgor as to any such matters.

            12.   The Pledgor’s and Company’s Covenants.  The Pledgor covenants with the Trustee that:

            a.   The Pledgor shall not change its name or jurisdiction of organization without giving thirty (30) days’ prior written notice to the Trustee; and 

            b.   The Collateral will not become subject to any Lien other than Permitted Liens and the Trustee’s Lien.  

            c.   During the continuance of an Event of Default, the proceeds payable under any liability policy, to the extent that they relate to the Collateral, shall be payable to the Trustee on account of the Obligations.  The foregoing notwithstanding, so long as no Event of Default has occurred and is continuing, the Pledgor shall have the option, but not the obligation, of applying such proceeds toward the replacement or repair of destroyed or damaged Collateral; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral, as determined by the Company in its reasonable judgment in accordance with Section 5, and (ii) shall be deemed Collateral in which the Trustee has been granted a first priority Lien.

            d.   The Pledgor shall notify the Trustee and the Company in writing promptly, but in no event more than two business days after the occurrence of an event which constitutes a breach of its obligations or duties under this Agreement.  

            (e)   The Company covenants with the Trustee that it will notify the Trustee and the Pledgor in writing promptly of an event which constitutes an Event of Default.  

            13.   The Trustee’s and Holders’ Rights, Duties and Liabilities.

            a.   Each Holder, by acceptance of its Note, appoints the Trustee to act as its agent under this Agreement.  Each Holder hereby irrevocably authorizes the Trustee to take such action on its behalf under the provisions of this Agreement and the other documents relating to the

        
            

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             Collateral (together with this Agreement, the “Security Documents”) and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of the Trustee by the terms hereof and thereof and such other powers as are reasonably incidental thereto and the Trustee shall hold all Collateral, charges and collections received pursuant to this Agreement, for the ratable benefit of the Holders.  The Trustee may perform any of its duties hereunder by or through its agents or employees or a co-trustee.  As to any matters not expressly provided for by this Agreement the Trustee shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Holders, and such instructions shall be binding; provided, however, that the Trustee shall not be required to take any action which in the Trustee’s reasonable discretion exposes it to liability or which is contrary to this Agreement, the Indenture or the other Security Documents or applicable law unless the Trustee is furnished with an indemnification by the Holders acceptable to the Trustee in its sole discretion with respect thereto and the Trustee shall not be responsible for any misconduct or negligence on the part of any of the agents appointed with due care by the Trustee.  The Trustee shall have no duties or responsibilities except those expressly set forth in this Agreement.  The Trustee shall not be under any obligation to any Holder 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 of the other Security Documents.  The Trustee shall not have by reason of this Agreement a fiduciary relationship in respect of any Holder; and nothing in this Agreement, expressed or implied, is intended to or shall be so construed as to impose upon the Trustee any obligations in respect of this Agreement except as expressly set forth herein.

            b.   The Pledgor assumes all responsibility and liability arising from or relating to the use, sale, license or other disposition of the Collateral.  The Obligations shall not be affected by any failure to take any steps to perfect the Trustee’s Liens or to collect or realize upon the Collateral, nor shall loss of or damage to the Collateral release the Company from any of the Obligations or the Pledgor from its obligations hereunder.  

            c.   The Pledgor shall remain liable under each of its contracts and each of its licenses relating to the Collateral.  Neither the Trustee nor any Holder shall have any obligation or liability under any such contract or license by reason of or arising out of this Agreement.  Neither the Trustee nor any Holder shall be required or obligated in any manner to perform or fulfill any of the Pledgor’s obligations under or pursuant to any such contract or license or to enforce any of the Pledgor’s rights under or pursuant to any contract or license.

            d.   In no event shall the Trustee or any Holder be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

            e.   In acting hereunder, the Trustee shall be entitled to all of the rights, protections, privileges and immunities afforded to the Trustee under the Indenture, and all such rights, protections, privileges and immunities are incorporated by reference herein and shall inure to the benefit of the trustee herein.

        
            

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            f.   No provision of this Agreement shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or any exercise of any rights or powers if it shall have reasonable grounds for believing that repayment of such funds or indemnity satisfactory to it against such risk or liability is not reasonably assured to it and none of the provisions contained in this Agreement shall require the Trustee to perform or be responsible for the performance of any of the obligations of the Company or the Pledgor.  

            g.   The Trustee shall not be deemed to have notice of any matter including without limitation any default or Event of Default or any breach by the Pledgor or the Company unless one of its Responsible Officers has actual knowledge thereof or written notice thereof is received by the trustee and such notice references this Agreement or the Indenture.

            (h)   For the avoidance of doubt, notwithstanding anything herein or in the Indenture to the contrary, the Trustee shall only be liable to the extent of obligations specifically imposed upon and undertaken by the trustee as pledgee hereunder and the Trustee shall only be liable to the extent of its gross negligence or willful misconduct in connection with its duties hereunder.  

            14.   Remedies and Rights During Event of Default. 

            a.   In addition to all other rights and remedies granted to it under this Agreement, the Indenture, and under any other instrument or agreement securing, evidencing or relating to any of the Obligations, during the continuance of any Event of Default, the Trustee may exercise all rights and remedies of a secured party under the UCC.  Without limiting the generality of the foregoing, the Pledgor expressly agrees that in any such event the Trustee or any agent acting on behalf of the Trustee, without demand of performance or other demand, advertisement or notice of any kind (except the notice specified below of time and place of public or private sale) to or upon the Pledgor or any other Person (all and each of which demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the UCC and other applicable law), may forthwith enter upon the premises of the Pledgor where any Collateral is located through self-help, without judicial process, without first obtaining a final judgment or giving the Pledgor or any other Person notice and opportunity for a hearing on the Trustee’s claim or action and may collect, receive, assemble, process, appropriate and realize upon the Collateral, or any part thereof, and may forthwith sell, lease, license, assign, give an option or options to purchase, or sell or otherwise dispose of and deliver the Collateral (or contract to do so), or any part thereof, in one or more parcels at a public or private sale or sales, at any exchange at such prices as it may deem acceptable, for cash or on credit or for future delivery without assumption of any credit risk.  The Trustee or any Holder shall have the right but not the obligation upon any such public sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase for the benefit of the Trustee and Holders, the whole or any part of the Collateral so sold, free of any right or equity of redemption, which equity of redemption the Pledgor hereby releases.  Such sales may be adjourned and continued from time to time with or without notice.  The Trustee shall have the right to conduct such sales on the Pledgor’s premises or elsewhere and shall have the right to use the Pledgor’s premises without charge for such time or times as the Trustee reasonably deems necessary or advisable.

            b.   The Pledgor further agrees, at the Trustee’s request, to provide such information as may be needed to enable the Trustee to assemble the Collateral and, to the extent required by

        
            

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             the UCC, to make it available to the Trustee at a place or places designated by the Trustee which are reasonably convenient to the Trustee and the Pledgor, whether at the Pledgor’s premises or elsewhere.  Until the Trustee is able to effect a sale, lease, or other disposition of Collateral, the Trustee shall have the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving the Collateral or its value or for any other purpose deemed appropriate by the Trustee.  The Trustee shall have no obligation to the Pledgor to maintain or preserve the rights of the Pledgor as against third parties with respect to Collateral while Collateral is in the Trustee’s possession.  The Trustee may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of the Trustee’s remedies (for the benefit of the Trustee and the Holders), with respect to such appointment without prior notice or hearing as to such appointment.  The Trustee shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale to the Obligations as provided herein and in the Indenture, and only after so paying over such net proceeds, and after the payment by the Trustee of any other amount required by any provision of law, need the Trustee account for the surplus, if any, to the Pledgor.  To the maximum extent permitted by applicable law, the Pledgor waives all claims, damages, and demands against the Trustee or any Holder arising out of the repossession, retention or sale of the Collateral except such as determined by a court of competent jurisdiction in a final non-appealable judgment to have resulted primarily from the gross negligence or willful misconduct of the Trustee or such Holder.  The Pledgor agrees that ten (10) days’ prior written notice by the Trustee of the time and place of any public sale or of the time after which a private sale may take place is reasonable notification of such matters.  The Company shall remain liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay all Obligations, including any reasonable attorneys’ fees or other out-of-pocket expenses actually incurred by the Trustee or any Holder to collect such deficiency. 

            c.   Except as otherwise specifically provided herein, the Pledgor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with this Agreement or any Collateral.

            d.   To the extent that applicable law imposes duties on the Trustee to exercise remedies in a commercially reasonable manner, the Pledgor acknowledges and agrees that it is not commercially unreasonable for the Trustee (i) to fail to incur expenses reasonably deemed significant by the Trustee to prepare Collateral for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to remove Liens on or any adverse claims against Collateral, (iv) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (v) to contact other Persons, whether or not in the same business as the Pledgor, for expressions of interest in acquiring all or any portion of such Collateral, (vi) to hire one or more professional auctioneers to assist in the disposition of Collateral, (vii) to dispose of Collateral by utilizing Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (viii) to dispose of Collateral  in wholesale rather than retail markets, (ix) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (x) to purchase insurance to insure the Trustee against risks of loss, collection or disposition of Collateral or to provide to the Trustee a guaranteed return from the disposition of Collateral, or (xi) to the extent deemed appropriate by the Trustee, to obtain the services of other brokers, investment

        
            

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             bankers, consultants and other professionals to assist the Trustee in the collection or disposition of any of the Collateral.  The Pledgor acknowledges that the purpose of this Section 13(d) is to provide non-exhaustive indications of what actions or omissions by the Trustee would not be commercially unreasonable in the Trustee’s exercise of remedies against the Collateral and that other actions or omissions by the Trustee shall not be deemed commercially unreasonable solely on account of not being indicated in this Section 13(d).  Without limitation upon the foregoing, nothing contained in this Section 13(d) shall be construed to grant any rights to the Pledgor or to impose any duties on the Trustee that would not have been granted or imposed by this Agreement or by applicable law in the absence of this Section 13(d).

            (e)   Notwithstanding any provision to the contrary contained in this Agreement, the Trustee shall not be required to obtain title to any Collateral that constitutes real property as a result of or in lieu of foreclosure or otherwise acquire possession of, or take any other action with respect to, any such Collateral if, as a result of any such action, the Trustee for itself or on behalf of the Holders would be considered to hold title to, to be a “mortgagee-in-possession” of, or to be an “owner” or “operator” of such Collateral within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable law, unless the Trustee has previously determined based on its reasonable judgment and a report prepared by an independent Person who regularly conducts environmental audits using customary industry standards, that:

            (i)   such Collateral is in compliance with applicable environmental laws or, if not, that it would be in the best economic interest of the Holders to take such actions as are necessary to bring the Collateral into compliance therewith; and

            (ii)   there are no circumstances present at such Collateral relating to the use, management or disposal of any hazardous substances, hazardous materials, hazardous wastes, or petroleum-based materials for which  investigation, testing, monitoring, containment, clean-up or remediation could be required under any federal, state or local law or regulation, or that if any such materials are present for which such action could be required, that it would be in the best economic interest of the Holders to take such actions with respect to the affected Collateral.

            The cost of the environmental audit report contemplated by this Section shall be advanced by the Company.

            During the continuance of an Event of Default, if the Trustee determines that it is in the best economic interest of the Holders to take such actions as are necessary to bring any such Collateral into compliance with applicable environmental laws, or to take such action with respect to the containment, clean-up or remediation of hazardous substances, hazardous materials, hazardous wastes, or petroleum-based materials affecting any such Collateral, then the Trustee shall take such action as it deems to be in the best economic interest of the Holders.  The cost of any such compliance, containment, cleanup or remediation shall be advanced by the Company.

             

            15.   Power of Attorney.  The Pledgor hereby irrevocably appoints the Trustee as its lawful attorney-in-fact, exercisable during the continuance of an Event of Default, to: (a) make, settle, and adjust all claims under the Pledgor’s insurance policies with respect to the Collateral, if any;

        
            

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             (b) pay, contest or settle any Lien or adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (c) transfer the Collateral into the name of the Trustee or a third party as the UCC permits.  The Pledgor hereby appoints the Company as its lawful attorney-in-fact to sign the Pledgor’s name on any documents necessary to perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full, in cash, and the Notes have terminated.  The Company’s foregoing appointment as the Pledgor’s attorney in fact, and all of the Company’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been satisfied in full, in cash and the Notes have terminated.

            16.   Cost and Expenses; Indemnification.

            The Company agrees to pay to the Trustee, for its benefit, on demand, (i) all fees, costs and expenses that the Trustee pays or incurs as provided in that fee letter dated January 26, 2011 between the Company and the Trustee, as the same may be amended from time to time; and (ii) sums paid or incurred to pay any amount or take any action required of the Pledgor under this Agreement that the Pledgor fails to pay or take; and (iii) costs and expenses of preserving and protecting the Collateral or taking any other action contemplated or required by this Agreement or the other Security Documents.  The foregoing shall not be construed to limit any other directly contrary provisions of this Agreement regarding costs and expenses to be paid by the Pledgor or the Company.

            (b)   The Company will save, indemnify and keep the Trustee, and the Trustee’s officers, employees, directors and agents, and the Holders harmless from and against all expense (including reasonable attorneys’ fees and expenses, including any costs associated with the enforcement of this Section 16(b)), loss, claim, liability or damage arising out of their actions or inaction hereunder or in connection with the Collateral, the Indenture or any Security Document, except to the extent such expense, loss, claim, liability or damage is determined by a court of competent jurisdiction in a final nonappealable judgment to have resulted from the gross negligence or willful misconduct of the Trustee or the Holders as finally determined by a court of competent jurisdiction.  This Section 15(b) shall be expressly construed to include, but not be limited to, such indemnities, compensation, expenses, disbursements, advances, losses, liabilities, damages and the like, as may pertain or relate to any environmental law or environmental matter.

             

            The benefits of this Section 15 shall survive the termination of this Agreement or the removal or resignation of the Trustee.

            17.   Limitation on the Trustee’s and the Holders’ Duties with Respect to the Collateral.

            Neither the Trustee nor any Holder shall have any other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of the Trustee or such Holder.

            The Trustee shall not be responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or maintaining the perfection of any security interest in the Collateral.  The

        
            

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             Trustee shall be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its own property and shall not be liable or responsible for any loss or diminution in the value of any of the Collateral, by reason of the act or omission of any agent or bailee selected by the Trustee in good faith.

            The Trustee shall not be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, for the validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of the Pledgor to the Collateral, for insuring the Collateral or for the payment of taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the Collateral.

            The Pledgor bears all risk of loss for damage or destruction of the Collateral.

            18.   No Waiver; Remedies Cumulative.  The Trustee’s failure, at any time or times, to require strict performance by the Pledgor of any provision of this Agreement or any other Financing Document shall not waive, affect, or diminish any right of the Trustee thereafter to demand strict performance and compliance herewith or therewith.  No waiver hereunder shall be effective unless signed by the Trustee and then is only effective for the specific instance and purpose for which it is given.  The Trustee’s rights and remedies under this Agreement and the other Financing Documents are cumulative.  The Trustee has all rights and remedies provided under the UCC, by law, or in equity.  The Trustee’s exercise of one right or remedy is not an election, and the Trustee’s waiver of any Event of Default is not a continuing waiver.  The Trustee’s delay in exercising any remedy is not a waiver, election, or acquiescence.

            19.   Marshaling of Assets.  The Trustee shall be under no obligation to marshal any assets in favor of Pledgor, the Company or any other Person liable for the Obligations or against or in payment of any Obligations.

            20.   Independent Obligations.  This Agreement is independent of the Company’s obligations under the Financing Documents.  The Trustee may bring a separate action to enforce the provisions hereof against the Pledgor without taking action against the Company or any other Person or joining the Company or any other Person as a party to such action.

             

            21.   Term; Revival.  

            a.   This Agreement is irrevocable by the Pledgor.  It shall terminate only upon the full satisfaction of the Obligations and termination of the Notes.  If, notwithstanding the foregoing, the Pledgor shall have any nonwaivable right under applicable law or otherwise to terminate or revoke this Agreement, the Pledgor agrees that such termination or revocation shall not be effective until the Trustee receives written notice of such termination or revocation.  Such notice shall not affect the Trustee’s right and power to enforce rights arising prior to receipt thereof.    

        
            

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            b.   The Pledgor’s pledge hereunder of the Collateral shall be reinstated and revived, and the Trustee’s rights shall continue, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made.  If any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

            22.   Notices.  Except as otherwise provided herein, whenever it is provided herein that any notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the parties desire to give and serve upon the other party any communication with respect to this Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and, in the case of the Company and the Trustee, shall be given in the manner, and deemed received, as provided for in the Indenture and in the case of the Pledgor shall be mailed, first-class postage prepaid, to the Pledgor’s Treasurer at the address of its principal office specified below its signature block herein or at any other address previously furnished in writing to the Trustee by the Pledgor. 

            23.   Miscellaneous.

            (a)   Arbitration.  In the event that the Company or the Pledgor, on the one hand, and one or more of the Holders, or the Trustee as pledgee on behalf of one or more of the Holders, on the other hand, are unable to resolve any dispute, claim or controversy between them (“Dispute”) related to this Agreement, such parties agree to submit the Dispute to binding arbitration in accordance with the following terms:

            (i)   Any party in its reasonable discretion may give written notice to the other applicable parties that the Dispute be submitted to arbitration for final resolution.  Within fifteen (15) calendar days after receipt of such notice, the receiving parties shall submit a written response.  If the Dispute remains following the exchange of the written notice and response, the parties involved in the Dispute shall mutually select one arbitrator within fifteen (15) calendar days of receipt of the response and shall submit the matter to that arbitrator to be settled in accordance with this Section 22(a).  If these parties cannot mutually agree on a single arbitrator during such fifteen (15) day period, these parties shall no later than the expiration of that fifteen (15) day period jointly submit the matter to the American Arbitration Association (“AAA”) for expedited arbitration proceedings to be conducted at the AAA offices, or at another mutually agreeable location, in Phoenix, Arizona pursuant to the Association Commercial Arbitration Rules then in effect (the “Rules”).  The AAA will follow the Rules to select a single arbitrator within fifteen (15) calendar days from the date the matter is jointly submitted to the AAA.  The arbitrator (whether selected by the parties or by the AAA) shall hold a hearing within forty-five (45) calendar days following the date that the arbitrator is selected and shall provide a timeline for the parties to submit arguments and supporting materials with sufficient advance notice to enable the arbitrator to hold the hearing within that forty-five (45) day period.  The arbitrator shall issue a tentative ruling with findings of fact and law within fifteen (15) calendar days after the date of the hearing.  The arbitrator shall provide the parties an opportunity to comment on the tentative ruling within a

        
            

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             timeframe established by the arbitrator, provided that the arbitrator shall render a final ruling within thirty (30) calendar days after the date of the hearing.  The arbitrator shall have the authority to grant any equitable and legal remedies that would be available in any judicial proceeding to resolve a disputed claim, including, without limitations, the authority to impose sanctions, including attorneys’ fees and costs, to the same extent as a competent court of law or equity.

            (ii)   The Company, the Pledgor, Trustee and each of the Holders agree that judgment upon any award rendered by the arbitrator may be entered in the courts of the State of Arizona or in the United States District Courts located in Arizona.  Such court may enforce the provisions of this Section 22(a)(ii), and the party seeking enforcement shall be entitled to an award of all costs and fees, including reasonable attorneys’ fees, to be paid by the party against whom enforcement is ordered.  The parties involved in a Dispute may terminate any arbitration proceeding by mutually resolving any Dispute prior to the issuance of a final arbitration ruling pursuant to this Section 22(a). 

            (iii)   For the avoidance of doubt, where a dispute arises related to this Pledge and Security Agreement between (x) the Trustee and the Company or the Pledgor, (y) the Trustee and one or more of the Holders, or (z) the Trustee and any third party, then in no event will the arbitration provisions set forth in this Section 22 apply to such dispute.

             

            24.   No Waiver; Cumulative Remedies.  Neither the Trustee nor any Holder shall by any act, delay or omission or otherwise be deemed to have waived any of its rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by the Trustee and then only to the extent therein set forth.  A waiver by the Trustee of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Trustee would otherwise have had on any future occasion.  No failure to exercise nor any delay in exercising on the part of the Trustee or any Holder, any right, power or privilege hereunder, shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or future exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies hereunder provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law.  

            25.   Limitation by Law.  All rights, remedies and powers provided in this Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that they shall not render this Agreement invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law.

            26.   Headings.  All headings appearing in this Agreement are for convenience only and shall be disregarded in construing this Agreement.

            27.   Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made or instruments entered into and, in each case, performed in said State.  Perfection and enforcement of the security interest to be granted pursuant to the terms hereof, shall be governed by and construed in accordance with the laws of the state in which the applicable real property is located.  

        
            

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            28.   Waiver of Jury Trial.  EACH OF THE PLEDGOR, THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

            29.   Successor Person Substituted for the Pledgor.  Upon any consolidation by the Pledgor with or merger of the Pledgor into any other Person or any sale, assignment, transfer, lease or conveyance of all or substantially all of the properties and assets of the Pledgor to any Person in accordance with Section 8.01 of the Base Indenture, the successor Person formed by such consolidation or into which the Pledgor is merged or to which such sale, assignment, transfer, lease or other conveyance is made shall succeed to, and be substituted for, and may exercise every right and power of, the Pledgor under this Agreement with the same effect as if such successor Person had been named as the Pledgor herein; and thereafter the predecessor Person shall be released from all obligations and covenants under this Agreement.

            30.   Assignment; Binding Effect.  Except as provided in Section 22(g), the Pledgor may not assign this Agreement without the Trustee’s prior written consent.  This Agreement shall be binding upon the Pledgor, its successors, permitted transferees and permitted assigns, and shall inure to the benefit of the Trustee and its successors, transferees and assigns under the Indenture.

            31.   Entire Agreement; Modifications.  This Agreement is intended by the Pledgor, the Company and the Trustee to be the final, complete, and exclusive expression of the agreement among them with respect to the subject matter hereof.  This Agreement supersedes all prior and contemporaneous oral and written agreements relating to such subject matter.  No modification, rescission, waiver, release, or amendment of any provision of this Agreement shall be made, except by a written agreement signed by the Pledgor, the Company and the Trustee; provided, however, that the Trustee may not enter into any such written agreement except with the written consent of the Required Holders, by Act of such Holders delivered to the Company, the Pledgor and the Trustee (such restriction shall not apply to the Trustee’s right to amend Exhibit A in accordance with Section 5).

            32.   Severability.  If any provision of this Agreement shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed from this Agreement and the remaining parts shall remain in full force as though the invalid, illegal or unenforceable portion had never been part of this Agreement.

            33.   Incorporation by Reference.  All of the rights, protections, immunities and privileges granted to the Trustee under the Indenture are incorporated by reference herein and shall inure to the benefit of the Trustee herein.

            34.   Counterparts.  This Agreement may be authenticated in any number of separate counterparts, each of which shall collectively and separately constitute one and the same agreement.  This Agreement may be authenticated by manual signature, facsimile or, if approved in writing by the Trustee, electronic means, all of which shall be equally valid.

        
            

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            [Signature Pages Follow]

        
            

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            [Signature page to Pledge and Security Agreement, Series UIC-12L, 13L, 14L, 15L, 16L, 17L, 18L, 19L, 20L and 21L]

             

            IN WITNESS WHEREOF, this Agreement has been duly executed by the undersigned as of the date first written above.

            AMERCO, a Nevada corporation, as the Company

             

             

            By:  _________________________________________

            Jason A. Berg, Chief Financial Officer

             

            Pledgor

             

            U-Haul Leasing & Sales Co., a Nevada corporation, as a Pledgor

             

            By:  ____________________________________

            Laurence J. De Respino, Secretary  

             

            Address for Notices:

            c/o U-Haul International, Inc.

            2727 N. Central Avenue

            Phoenix, AZ  85004

            Attn:  Legal Department 

             

            U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as the Trustee

             

            By:  ____________________________________

            Name:  __________________________________

            Title:  ___________________________________

            

        
            

                 

            

        

        

        

        
        
            

        

            EXHIBIT A TO PLEDGE AND SECURITY AGREEMENT SERIES UIC-12L, 13L, 14L, 15L, 16L, 17L, 18L, 19L, 20L and 21L 

            COLLATERAL - To be supplemented with additional Schedules from time to time, as new sub-series of Notes are issued.  

             

             

             

             

             

             

             

             

             

             

        
            

                 

            

        

        

        
        
            

        

            EXHIBIT B

             

            FORM OFFICERS’ CERTIFICATE – COLLATERAL SUBSTITUTION

             

            The undersigned, _________________________, _________________________ of AMERCO, a Nevada corporation (the “Company”), hereby certifies to U. S. Bank National Association, as trustee under the U-Haul Investors Club Base Indenture dated as of February 14, 2011 (the “Base Indenture”), as follows:

             

            1.Pursuant to Section 5 of the Pledge Agreement dated as of ___________________ (“Pledge Agreement”), the equipment, property or Proceeds constituting Collateral under the _______ Supplemental Indenture dated as of _________________ to the Base Indenture (the “_______ Supplement”) and identified on Exhibit A hereto (“Initial Collateral”) is to be released from the Lien created pursuant to  the Pledge Agreement, such release to be effective as of ______________________ (such date, the “Date of Substitution”).  

             

            2.The equipment, property or other asset identified on Exhibit B hereto (“Replacement Collateral”) shall replace such Initial Collateral, pursuant to Section 5 of the Pledge Agreement.  

             

            3.The Company has determined, in accordance with Section 5 of the Pledge Agreement, that the value of such Replacement Collateral is not less than the value of the Initial Collateral as of the Date of Substitution.   

             

            4.I have read the conditions set forth in the Pledge Agreement and the _________ Supplement relating to the substitution of Collateral, and all conditions thereto have been satisfied. In my opinion, I have made such examination and investigation as is necessary to enable me to express an informed opinion with respect thereto.  

             

            IN WITNESS WHEREOF, the undersigned executes this Officer’s Certificate as of __________________________________.

             

             

             

             

            AMERCO, a Nevada corporation

             

            By: _____________________________________

             

            Its: _____________________________________

             

        
            

                 

            

        

        

        
        
            

        

            EXHIBIT C

             

            FORM OF OFFICER’S CERTIFICATE - LIEN RELEASE UPON REPAYMENT IN FULL

             

            The undersigned, _________________________, _________________________ of AMERCO, a Nevada corporation (the “Company”), hereby certifies to U. S. Bank National Association, as trustee under the U-Haul Investors Club Base Indenture dated as of February 14, 2011 (the “Base Indenture”), as follows:

             

            1.All conditions precedent set forth in the Base Indenture and in the _______ Supplemental Indenture thereto dated ____________________ (the “Indenture Supplement”) to the release of the Trustee’s Lien on the Collateral securing the obligations under the Indenture Supplement have been satisfied.  

             

            2.To the extent the Collateral includes box trucks or trailers evidenced by certificates of title, such Collateral is identified by VIN on the attachment hereto and the certificates of title with respect to such Collateral shall be sent by you to the following address: ______________________________________________________.

             

            We acknowledge that the Trustee is not responsible for determining whether the conditions to the release of Liens on the Collateral have been satisfied.  

             

             

            IN WITNESS WHEREOF, the undersigned executes this Officer’s Certificate as of __________________________________.

             

             

             

             

            AMERCO, a Nevada corporation

             

            By: _____________________________________

             

            Its: _____________________________________

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