Exhibit 10(u)

 

AMENDMENT NO. 2 TO REVOLVING

CREDIT AGREEMENT

 

THIS AMENDMENT NO. 2 TO REVOLVING CREDIT AGREEMENT (this “Amendment”) dated as
of April 30, 2003, by and among AARON RENTS, INC., a Georgia corporation
(“Borrower”), AARON RENTS, INC. PUERTO RICO, a Puerto Rico corporation
(“Co-Borrower”), the several banks and other financial institutions from time to
time party hereto (the “Lenders”) SUNTRUST BANK, in its capacity as
Administrative Agent for the Lenders (“Administrative Agent”) and WACHOVIA BANK,
NATIONAL ASSOCIATION, formerly known as First Union National Bank, as
Syndication Agent (“Syndication Agent”).

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, Co-Borrower, Lenders and Agents are parties to that
certain Revolving Credit Agreement dated as of March 30, 2001, as amended by
that certain Amendment No. 1 to Revolving Credit Agreement, dated as of October
31, 2002 (as so amended, the “Credit Agreement”); and

 

WHEREAS, the Borrower has requested that certain terms in the Credit Agreement
be amended and the Administrative Agent and the Lenders have agreed to the
requested amendments on the terms and conditions set forth herein;

 

NOW, THEREFORE, for and in consideration of the mutual premises contained herein
and other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

 

1.             Definitions.  All terms used herein without definition shall have
the meanings set forth for such terms in the Credit Agreement.

 

2.             Amendment to Section 1.1 of the Credit Agreement.

 

(a)           Section 1.1 of the Credit Agreement is hereby amended by deleting
the definition of “Revolving Commitment” and substituting the following
definition in lieu thereof:

 

“Revolving Commitment” shall mean, with respect to each Lender, the obligation
of such Lender to make Revolving Loans to the Borrower and the Co-Borrower and
to participate in Letters of Credit and Swingline Loans in an aggregate
principal amount not exceeding the amount set forth with respect to such Lender
on the signature pages to the Second Amendment, or in the case of a Person
becoming a Lender after the effective date of the Second Amendment, the amount
of the assigned “Revolving Commitment” as provided in the Assignment

 

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and Acceptance Agreement executed by such Person as an assignee, as the same may
be changed  pursuant to terms hereof.

 

(b)           Section 1.1 of the Credit Agreement is hereby amended by adding
the following new definition of “Second Amendment” to such Section in the
appropriate alphabetical order:

 

“Second Amendment” shall mean that certain Amendment No. 2 to Revolving Credit
Agreement, dated as of April 30, 2003.

 

3.             Conditions of Effectiveness.  This Amendment shall become
effective upon the receipt by Administrative Agent from each of the parties
hereto a duly executed counterpart of this Amendment.

 

4.             Representations and Warranties of Borrower.  Borrower, without
limiting the representations and warranties provided in the Credit Agreement,
represents and warrants to the Lenders and the Administrative Agent, after
giving effect to this Amendment, as follows:

 

(a)           The execution, delivery and performance by Borrower of this
Amendment are within Borrower’s corporate powers, have been duly authorized by
all necessary corporate action (including any necessary shareholder action) and
do not and will not (a) violate any provision of any law, rule or regulation,
any judgment, order or ruling of any court or governmental agency, the articles
of incorporation or by-laws of Borrower or any indenture, agreement or other
instrument to which Borrower is a party or by which Borrower or any of its
properties is bound or (b) be in conflict with, result in a breach of, or
constitute with notice or lapse of time or both a default under any such
indenture, agreement or other instrument.

 

(b)           This Amendment constitutes the legal, valid and binding
obligations of Borrower, enforceable against Borrower in accordance with their
respective terms.

 

(c)           No Default or Event of Default has occurred and is continuing as
of the date hereof.

 

5.             Survival.  Each of the foregoing representa­tions and warranties
and each of the representations and warranties made in the Credit Agreement
shall be made at and as of the date hereof.  Each of the foregoing
representations and warranties shall constitute a representation and warranty of
Borrower under the Credit Agreement, and it shall be an Event of Default if any
such representation and warranty shall prove to have been incorrect or false in
any material respect at the time when made.  Each of the representations and
warranties made under the Credit Agreement (including those made herein) shall
survive and not be waived by the execution and delivery of this Amendment or any
investigation by the Lenders or the Administrative Agent.

 

6.             No Waiver, Etc.  Borrower hereby agrees that nothing herein shall
constitute a waiver by the Lenders of any Default or Event of Default, whether
known or unknown, which

 

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may exist under the Credit Agreement.  Borrower hereby further agrees that no
action, inaction or agreement by the Lenders, including without limitation, any
indulgence, waiver, consent or agreement altering the provisions of the Credit
Agreement which may have occurred with respect to the non-payment of any
obligation during the terms of the Credit Agreement or any portion thereof, or
any other matter relating to the Credit Agreement, shall require or imply any
future indulgence, waiver, or agreement by the Lenders.  In addition, Borrower
acknowledges and agrees that it has no knowledge of any defenses, counterclaims,
offsets or objections in its favor against any Lender with regard to any of the
obligations due under the terms of the Credit Agreement as of the date of this
Amendment.

 

7.             Ratification of Credit Agreement.  Except as expressly amended
herein, all terms, covenants and conditions of the Credit Agreement and the
other Loan Documents shall remain in full force and effect, and the parties
hereto do expressly ratify and confirm the Credit Agreement as amended herein. 
All future references to the Credit Agreement shall be deemed to refer to the
Credit Agreement as amended hereby.

 

8.             Binding Nature.  This Amendment shall be binding upon and inure
to the benefit of the parties hereto, their respective heirs, successors,
successors-in-titles, and assigns.

 

9.             Costs, Expenses and Taxes.  Borrower agrees to pay on demand all
reasonable costs and expenses of the Administrative Agent in connection with the
preparation, execution and delivery of this Amendment and the other instruments
and documents to be delivered hereunder, including, without limitation, the
reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent with respect thereto and with respect to advising the Administrative Agent
as to its rights and responsibilities hereunder and thereunder.  In addition,
Borrower shall pay any and all stamp and other taxes payable or determined to be
payable in connection with the execution and delivery of this Amendment and the
other instruments and documents to be delivered hereunder, and agrees to save
the Administrative Agent and each Lender harmless from and against any and all
liabilities with respect to or resulting from any delay in paying or omission to
pay such taxes.

 

10.           Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF GEORGIA.

 

11.           Entire Understanding.  This Amendment sets forth the entire
understanding of the parties with respect to the matters set forth herein, and
shall supersede any prior negotia­tions or agreements, whether written or oral,
with respect thereto.

 

12.           Counterparts.  This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts and may be
delivered by telecopier.  Each counterpart so executed and delivered shall be
deemed an original and all of which taken together shall constitute but one and
the same instrument.

 

[Remainder of page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment through
their authorized officers as of the date first above written.

 

 

AARON RENTS, INC.

 

 

 

 

 

By:

/s/ Gilbert L. Danielson

 

 

 

 

 

 

AARON RENTS, INC. PUERTO RICO

 

 

 

 

 

By:

/s/ Gilbert L. Danielson

 

 

 

Name: Gilbert L. Danielson

 

 

Title: President

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO
REVOLVING CREDIT AGREEMENT]

 

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SUNTRUST BANK, as Administrative Agent, as
Issuing Bank, as Swingline Lender and as a
Lender

 

 

 

 

 

By:

/s/ Donald M. Thompson

 

 

 

Name: Donald M. Thompson

 

 

Title: Director

 

 

 

 

 

 

Revolving Commitment:  $22,499,999.99

 

 

Pro Rata Share:  25.0%

 

 

Swingline Commitment:  $8,000,000.00

 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO
REVOLVING CREDIT AGREEMENT]

 

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WACHOVIA BANK, NATIONAL
ASSOCIATION, formerly known as First Union
National Bank, as
Syndication Agent and as a Lender

 

 

 

 

 

By:

/s/ William F. Fox

 

 

 

Name: William F. Fox

 

 

Title: Vice President

 

 

 

 

 

 

Revolving Commitment:  $15,555,555.56

 

 

Pro Rata Share:  18.18%

 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO
REVOLVING CREDIT AGREEMENT]

 

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REGIONS BANK, as a Lender

 

 

 

 

 

By:

/s/ Stephen H. Lee

 

 

 

Name: Stephen H. Lee

 

 

Title: Senior Vice President

 

 

 

 

 

 

Revolving Commitment:  $11,666,666.66

 

 

Pro Rata Share:  13.64%

 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO
REVOLVING CREDIT AGREEMENT]

 

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SOUTHTRUST BANK, N.A., as a Lender

 

 

 

 

 

By:

/s/ Ronald Fontenot

 

 

 

Name: Ronald Fontenot

 

 

Title: Vice President

 

 

 

 

 

 

Revolving Commitment:  $13,611,111.13

 

 

Pro Rata Share:  15.91%

 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO
REVOLVING CREDIT AGREEMENT]

 

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BRANCH BANKING & TRUST CO.,
as a Lender

 

 

 

 

 

By:

/s/ Paul E. Mclaughlin

 

 

 

Name: Paul E. Mclaughlin

 

 

Title: Senior Vice President

 

 

 

 

 

 

Revolving Commitment:  $7,777,777.78

 

 

Pro Rata Share: 9.09%

 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO
REVOLVING CREDIT AGREEMENT]

 

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FIFTH THIRD BANK, as a Lender

 

 

 

 

 

By:

/s/ Christopher Morey

 

 

 

Name: Christopher Morey

 

 

Title: Assistant Vice President

 

 

 

 

 

 

Revolving Commitment:  $7,777,777.78

 

 

Pro Rata Share: 9.09%

 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO
REVOLVING CREDIT AGREEMENT]

 

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BANK LEUMI, USA, as  Lender

 

 

 

 

 

By:

/s/ Joung Hee Hong

 

 

 

Name: Joung Hee Hong

 

 

Title: Vice President

 

 

 

 

 

 

Revolving Commitment:  $3,888,888.89

 

 

Pro Rata Share: 4.55%

 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO
REVOLVING CREDIT AGREEMENT]

 

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ISRAEL DISCOUNT BANK MIAMI AGENCY,
as a Lender

 

 

 

 

 

By:

/s/ David Keinan

 

 

 

Name: David Keinan

 

 

Title: SVP & Regional Manager

 

 

 

 

By:

/s/ Roberto Munoz

 

 

 

Name: Roberto Munoz

 

 

Title: SVP

 

 

 

 

 

 

Revolving Commitment:  $3,888,888.89

 

 

Pro Rata Share: 4.55%

 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO
REVOLVING CREDIT AGREEMENT]

 

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