PROPERTY MANAGEMENT AGREEMENT
THIS PROPERTY MANAGEMENT AGREEMENT (this "Agreement") is entered
into as of December 31, 2001 among Twenty SAC Self-Storage Corporation,
a Nevada corporation, with its principal place of business at 715 South
Country Club Drive, Mesa, AZ 85210 ("Owner"), and the property managers
identified on Exhibit A attached hereto and incorporated herein by
reference (each such property manager is respectively referred to herein
A. Owner owns the real property and self-storage related
improvements thereon located at the street addresses identified on
Exhibit A hereto (hereinafter, collectively the "Property").
B. Owner intends that the Property be rented on a space-by-
space retail basis to corporations, partnerships, individuals and/or
other entities for use as self-storage facilities.
C. Owner desires that U-Haul manage the Property and U-Haul
desires to act as the property manager for the Property, all in
accordance with the terms and conditions of this Agreement and as
more specifically designated on Exhibit A hereto.
NOW, THEREFORE, in consideration of the mutual covenants herein
contained, Owner and U-Haul hereby agree as follows.
(a) Owner hereby retains U-Haul, and U-Haul agrees to act as
manager of the Property upon the terms and conditions hereinafter set
(b) Owner acknowledges that U-Haul, and/or U-Haul affiliates, is
in the business of managing self-storage facilities, both for its own
account and for the account of others. It is hereby expressly agreed
that notwithstanding this Agreement, U-Haul and such affiliates may
continue to engage in such activities, may manage facilities other
than those presently managed by U-Haul and its affiliates (whether or
not such other facilities may be in direct or indirect competition
with Owner) and may in the future engage in other business which may
compete directly or indirectly with activities of Owner.
(c) In the performance of their respective duties under this
Agreement, each U-Haul property manager shall occupy the position of
an independent contractor with respect to Owner. Nothing contained
herein shall be construed as making the parties
hereto (or any of them) partners or joint venturors, nor (except as
expressly otherwise provided for herein) construed as making U-Haul
an agent or employee of Owner or of any other U-Haul property manager
2. Duties and Authority of U-Haul.
(a) GENERAL DUTIES AND AUTHORITY. Subject only to the
restrictions and limitations provided in paragraphs (o) and (p) of
this Section 2 and the right of Owner to terminate this Agreement as
provided in Section 6 hereof, U-Haul shall have the sole and
exclusive authority to fully manage the Property and supervise and
direct the business and affairs associated or related to the daily
operation thereof, and, to that end on behalf of Owner, to execute
such documents and instruments as, in the sole judgment of U-Haul,
are reasonably necessary or advisable under the circumstances in
order to fulfill U-Haul's duties hereunder. Such duties and
authority shall include, without limitation, those set forth below.
Throughout the Term of this Agreement, U-Haul shall operate the
Property under the "U-Haul" REGISTERED name.
(b) RENTING OF THE PROPERTY. U-Haul shall establish policies
and procedures for the marketing activities for the Property, and may
advertise the Property through such media as U-Haul deems advisable,
including, without limitation, advertising with the Yellow Pages.
U-Haul shall have the sole discretion, which discretion shall be
exercised in good faith, to establish the terms and conditions of
occupancy by the tenants of the Property, and U-Haul is hereby
authorized to enter into rental agreements on behalf and for the
account of Owner with such tenants and to collect rent from such
tenants. U-Haul may jointly advertise the Property with other
properties owned or managed by U-Haul, and in that event, U-Haul
shall reasonably allocate the cost of such advertising among such
(c) REPAIR, MAINTENANCE AND IMPROVEMENTS. U-Haul shall make,
execute, supervise and have control over the making and executing of
all decisions concerning the acquisition of furniture, fixtures and
supplies for the Property, and may purchase, lease or otherwise
acquire the same on behalf of Owner. U-Haul shall make and execute,
or supervise and have control over the making and executing of all
decisions concerning the maintenance, repair, and landscaping of the
Property. U-Haul shall, on behalf of Owner, negotiate and contract
for and supervise the installation of all capital improvements
related to the Property; provided, however, that U-Haul agrees to
secure the prior written approval of Owner on all such expenditures
in excess of $5,000.00 for any one item, except monthly or recurring
operating charges and/or emergency repairs if in the opinion of U-Haul
such emergency-related expenditures are necessary to protect the
Property from damage or to maintain services to the tenants as called
for in their respective leases.
(d) PERSONNEL. U-Haul shall select all vendors, suppliers,
contractors, subcontractors and employees with respect to the
Property and shall hire, discharge and supervise all labor and
employees required for the operation and maintenance of the Property.
Any employees so hired shall be employees of U-Haul, and shall be
carried on the payroll of U-Haul. Employees may include, but will
not be limited to, on-site resident managers, on-site assistant
managers, and relief managers located, rendering services, or
performing activities on the Property in connection with its operation
and management. The cost of employing such persons shall not exceed
prevailing rates for comparable persons performing the same or similar
services with respect to real estate similar to the Property.
(e) AGREEMENTS. U-Haul shall negotiate and execute on behalf of
Owner such agreements which U-Haul deems necessary or advisable for
the furnishing of utilities, services, concessions and supplies, for
the maintenance, repair and operation of the Property and such other
agreements which may benefit the Property or be incidental to the
matters for which U-Haul is responsible hereunder.
(f) OTHER DECISIONS. U-Haul shall make all decisions in
connection with the daily operation of the Property.
(g) REGULATIONS AND PERMITS. U-Haul shall comply in all
material respects with any statute, ordinance, law, rule, regulation
or order of any governmental or regulatory body, having jurisdiction
over the Property, respecting the use of the Property or the
maintenance or operation thereof. U-Haul shall apply for and attempt
to obtain and maintain, on behalf of Owner, all licenses and permits
required or advisable (in the sole judgment of U-Haul) in connection
with the management and operation of the Property.
(h) RECORDS AND REPORTS OF DISBURSEMENTS AND COLLECTIONS.
U-Haul shall establish, supervise, direct and maintain the operation of
a system of record keeping and bookkeeping with respect to all receipts
and disbursements in connection with the management and operation of the
Property. The books, records and accounts shall be maintained at the
U-Haul office or at such other location as U-Haul shall determine, and
shall be available and open to examination and audit quarterly by Owner,
its representatives, any mortgagee of the Property, and such mortgagee's
representative. On or before thirty (30) days after the close of each
quarter, U-Haul shall cause to be prepared and delivered to Owner, a
monthly statement of receipts, expenses and charges, together with a
statement of the disbursements made by U-Haul during such period on
(j) COLLECTION. U-Haul shall be responsible for the billing and
collection of all accounts receivable and for payment of all accounts
payable with respect to the Property and shall be responsible for
establishing policies and procedures to minimize the amount of bad
(k) LEGAL ACTIONS. U-Haul shall cause to be instituted, on
behalf and in the name of Owner, any and all legal actions or
proceedings U-Haul deems necessary or advisable to collect charges,
rent or other income due to Owner with respect to the Property and to
oust or dispossess tenants or other persons unlawfully in possession
under any lease, license concession agreement or otherwise, and to
collect damages for breach thereof or default thereunder by such
tenant, licensee, concessionaire