Document:

EXHIBIT 10(cc)

 

Form
of Aaron Rents, Inc. 2001 Stock Option And
Incentive Award Plan

Award Agreement (Options) for Non-Employee Directors

 

This
Award Agreement (the “Agreement”)
is entered into as of the                          ,
by and between Aaron Rents, Inc., a Georgia corporation (the “Company”), and                           
(the “Grantee”).

 

W I  T  N  E
S  S  E  T  H:

 

WHEREAS, the
Aaron Rents, Inc. 2001 Stock Option and Incentive Award Plan (the “Plan”) was adopted by the Company, a copy of which is attached
hereto as Exhibit A and incorporated herein by
reference; and

 

WHEREAS, on
the date hereof, the Stock Option Committee of the Board of Directors
authorized the proper officers of the Company to prepare and enter into an
agreement with the Grantee evidencing the grant of the options described
herein;

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

 

1.             Grant of Option.  An
option to purchase                         
shares of the Company’s Common Stock, par value $.50 per share (“Common Stock”), is hereby granted to the Grantee pursuant to
the Plan (hereinafter referred to as the “Option”).  The Option is subject in all respects to the
terms and conditions of the Plan.  For
all purposes of the Plan, the date of the Option granted hereunder (the “Grant Date”) shall be the                                                   .  The Option is a nonqualified stock option and
is not intended to qualify as an incentive stock option within the meaning of
Section 422 of the Internal Revenue Code of 1986, as amended.

 

2.             Option Price.  The
option price for all shares subject to the Option is $                               per
share, the Fair Market Value as of the Grant Date.

 

3.             Securities Laws
Restrictions.  The Option may not be exercised at any time
unless, in the opinion of counsel for the Company, the issuance and sale of the
shares issued upon such exercise is exempt from registration under the
Securities Act of 1933, as amended (the “1933 Act”), or
any other applicable securities or “blue sky” laws, or the shares have been
registered under such laws.  The Company
shall not be required to register the shares issuable upon the exercise of the
Option under any such laws.  Unless the
shares have been registered under all such laws, the Grantee shall represent,
warrant and agree, as a condition to the exercise of the Option, that the
shares are being purchased for investment only and without a view to any sale
or

 

 

distribution of such shares
and that such shares shall not be transferred or disposed of in any manner
without registration under such laws, unless it is the opinion of counsel for
the Company that such a disposition is exempt from such registration.  The Grantee acknowledges that the
certificates evidencing the shares issued upon the exercise of the Option shall
bear an appropriate legend giving notice of the foregoing transfer
restrictions.

 

4.             Transfer
Restrictions.  The Option may not be sold, assigned,
pledged, hypothecated, alienated or otherwise disposed of or transferred in any
manner, in whole or in part, otherwise than by will or the laws of descent or
distribution and may be exercised during the lifetime of the Grantee only by
the Grantee.  The terms of this Agreement
and the Plan shall be binding upon the executors, administrators, heirs,
successors and assigns of the Grantee.

 

5.             Duration and
Exercise of Option.

 

(a)           The Option may be
exercised, from time to time, with respect to all or any part of the total
number of shares, beginning on the date reflected on and subject to the
conditions listed on Schedule I
hereto, and subject to earlier termination of the Option as provided in Section
5(b) below.

 

(b)           The Option may
not be exercised with respect to any shares subject hereto after the earlier of
(i) ten (10) years from the Grant Date, (ii) the date the Grantee’s service as
a director of the Company is terminated for Cause, or (iii) two (2) months
after the date the Grantee’s service as a director of the Company terminates
for any other reason (other than by reason of death, which occurrence is
governed by the terms and conditions of the Plan applicable to the death of
employees, including any extension of the period for exercise in the event Grantee
dies after termination but prior to the otherwise applicable Option Expiration
Date) (herein called the “Option Expiration Date”),
and may be exercised until the Option Expiration Date only in accordance with
the terms of this Agreement and the Plan.

 

(c)           This Option may be exercised in whole
or in part by delivering to the Company a written notice of exercise specifying
the number of shares to be purchased together with full payment of the
aggregate option price as provided in the Plan.

 

6.             No
Right to Continued Service.  Nothing in this Agreement shall
confer upon Grantee any right to continue as a director of the Company or an
affiliate of the Company.

 

7.             Definitions.  Each
capitalized term not defined herein shall have the meaning given to it in the
Plan.

 

	
   

  	
  AARON
  RENTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Its
  Executive Vice President and CFO

  

 

2

 

Grantee
hereby (i) acknowledges receipt of a copy of the Plan which is attached hereto,
(ii) represents that he is familiar with the terms and provisions hereof and
thereof, and (iii) accepts the Option subject to all the terms and provisions
hereof and thereof.  Grantee hereby
agrees to accept as binding, conclusive and final all decisions or
interpretations of the Stock Option Committee of the Board of Directors upon
any questions arising under the Plan. 
Grantee authorizes the Company to withhold from any compensation payable
to him, or Grantee will contribute as a condition to the exercise of the
Option, in accordance with applicable law, any taxes required to be withheld by
federal, state or local law as a result of the grant, existence or exercise of
the Option.

 

	
   

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

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SCHEDULE I TO AWARD AGREEMENT

 

Grantee:                             

 

 

Vesting Provisions:

 

The
Option shall vest, and may be exercised with respect to the shares subject
thereto, on or after the dates set forth below, subject to earlier termination
of the Option as provided in the Award Agreement or in the Plan:

 

	
  Date

  	
   

  	
  Number
  of SharesEXHIBIT 10(dd)

 

Form of Aaron Rents, Inc. 2001 Stock Option And IncentiveAward Plan

Restricted Stock Award Agreement

 

THIS
AGREEMENT, made and entered into as of the                    ,
by and between AARON RENTS, INC. (the “Company”) and                        (“Grantee”).

 

WITNESSETH THAT:

 

WHEREAS, the
Company maintains the Aaron Rents, Inc. 2001 Stock Option and Incentive Award
Plan (the “Plan”), and the Grantee has been selected by the Committee to
receive a Restricted Stock Award under the Plan;

 

NOW,
THEREFORE, IT IS AGREED, by and between the Company and the Grantee, as
follows:

 

1.             Award of Restricted
Stock

 

1.1           The Company hereby grants to the
Grantee an award of                  Shares
of restricted stock (“Restricted Stock”), subject to, and in accordance with,
the restrictions, terms and conditions set forth in this Agreement and the
Plan.  The grant date of this award of
Restricted Stock is                      (“Grant
Date”).

 

1.2           This Agreement shall be construed in
accordance with and subject to the provisions of the Plan (the provisions of
which are incorporated herein by reference) and, except as otherwise expressly
set forth herein, the capitalized terms used in this Agreement shall have the
same definitions as set forth in the Plan.

 

2.             Restrictions

 

2.1           Subject to Sections 2.2, 2.3, and 2.4
below, if the Grantee remains employed by the Company, the Grantee shall become
fully vested in the Restricted Stock on                        (such
date shall be the  “Vesting Date”).  On the Vesting Date, Grantee shall own the
Shares of Restricted Stock free and clear of all restrictions imposed by this
Agreement (except those imposed by Section 3.4 below).  The Company shall deliver a certificate(s)
for the Shares of Restricted Stock to Grantee as soon as practical after the
Vesting Date.  For purposes of this
Agreement, employment with any Subsidiary of the Company, or service as a
Director of the Company or any Subsidiary of the Company, shall be considered
employment with the Company.

 

2.2           In the event prior to the Vesting
Date Grantee dies while actively employed by the Company, the Restricted Stock
shall become fully vested and nonforfeitable as of the date of Grantee’s
death.  The Company shall deliver certificate(s)
for the Restricted Stock, free and clear of any restrictions imposed by this
Agreement (except for Section 3.4) to Grantee’s personal 

 

 

representative or his estate as
soon as practical after his date of death. 
Except for death, or as provided in Section 2.3, if Grantee terminates
employment prior to the Vesting Date, the Restricted Stock shall be forfeited
and all rights of Grantee to such Shares shall be terminated.

 

2.3           Notwithstanding the other provisions
of this Agreement, in the event of a Change in Control prior to Grantee’s
Vesting Date, the Restricted Stock shall become fully vested and nonforfeitable
as of the date of the Change in Control. 
On the date of the Change in Control, the Company shall deliver to
Grantee a certificate(s) for the Restricted Stock, free and clear of any
restrictions imposed by this Agreement.

 

2.4           The Restricted Stock may not be sold,
assigned, transferred, pledged or otherwise encumbered prior to the date
Grantee becomes vested in the Restricted Stock.

 

3.             Stock; Dividends;
Voting

 

3.1           The stock certificate(s) evidencing
the Restricted Stock shall be registered on the Company’s books in the name of
the Grantee as of the Grant Date. 
Physical possession or custody of such stock certificates shall be
retained by the Company until such time as the shares or Restricted Stock are
vested in accordance with Section 2. 
While in its possession, the Company reserves the right to place a
legend on the stock certificate(s) restricting the transferability of such
certificates and referring to the terms and conditions (including forfeiture)
of this Agreement and the Plan.

 

3.2           During the period the Restricted
Stock is not vested, the Grantee shall be entitled to receive dividends and/or
other distributions declared on such Restricted Stock, but Grantee shall not be
entitled to vote such Restricted Stock.

 

3.3           In the event of any adjustments in
authorized Shares as provided in Section 4.3 of the Plan, the number and class
of Shares of Restricted Stock or other securities that Grantee shall be
entitled to pursuant to this Agreement shall be appropriately adjusted or
changed to reflect such change, provided that any such additional Shares of
Restricted Stock or additional or different shares or securities shall remain
subject to the restrictions in this Agreement.

 

3.4           The Grantee represents and warrants
that he is acquiring the Restricted Stock for investment purposes only, and not
with a view to distribution thereof.  The
Grantee is aware that the Restricted Stock may not be registered under the
federal or any state securities laws and that, in addition to the other
restrictions on the Restricted Stock, the shares will not be able to be
transferred unless an exemption from registration is available.  By making this award of Restricted Stock, the
Company is not undertaking any obligation to register the Restricted Stock
under any federal or state securities laws.

 

4.             No Right to
Continued Employment

 

Nothing in
this Agreement or the Plan shall be interpreted or construed to confer upon the
Grantee any right with respect to continuance of employment by the Company or a
Subsidiary,

 

2

 

nor shall this Agreement or the
Plan interfere in any way with the right of the Company or a Subsidiary to
terminate the Grantee’s employment at any time, subject to Grantee’s rights
under this Agreement.

 

5.             Taxes and
Withholding

 

The Grantee
shall be responsible for all federal, state and local income taxes payable with
respect to this award of Restricted Stock. 
The Grantee shall have the right to make such elections under the
Internal Revenue Code of 1986, as amended, as are available in connection with
this award of Restricted Stock, including a “Section 83(b) election.”  The Company and Grantee agree to report the
value of the Restricted Stock in a consistent manner for federal income tax
purposes.  The Company shall have the
right to retain and withhold from any payment of Restricted Stock the amount of
taxes required by any government to be withheld or otherwise deducted and paid
with respect to such payment.  At its
discretion, the Company may require Grantee to reimburse the Company for any
such taxes required to be withheld and may withhold any distribution in whole
or in part until the Company is so reimbursed. 
In lieu thereof, the Company shall have the right to withhold from any
other cash amounts due to Grantee an amount equal to such taxes required to be
withheld and/or withhold and cancel (in whole or in part) a number of shares of
Restricted Stock having a market value equal to the amount of such taxes.

 

6.             Grantee Bound By
The Plan

 

The Grantee
hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all
the terms and provisions thereof.

 

7.             Modification of
Agreement

 

This Agreement
may be modified, amended, suspended or terminated, and any terms or conditions
may be waived, but only by a written instrument executed by the parties hereto.

 

8.             Severability

 

Should any
provision of this Agreement be held by a court of competent jurisdiction to be
unenforceable or invalid for any reason, the remaining provisions of this
Agreement shall not be affected by such holding and shall continue in full
force in accordance with their terms.

 

9.             Governing Law

 

The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of Georgia without giving effect to the
conflicts of laws principles thereof.

 

3

 

10.          Successors in
Interest

 

This Agreement
shall inure to the benefit of, and be binding upon, the Company and its
successors and assigns, and upon any person acquiring, whether by merger,
consolidation, reorganization, purchase of stock or assets, or otherwise, all
or substantially all of the Company’s assets and business.  This Agreement shall inure to the benefit of
the Grantee’s legal representatives.  All
obligations imposed upon the Grantee and all rights granted to the Company
under this Agreement shall be final, binding and conclusive upon the Grantee’s
heirs, executors, administrators and successors.

 

11.          Resolution of
Disputes

 

Any dispute or
disagreement which may arise under, or as a result of, or in any way relate to
the interpretation, construction or application of this Agreement shall be
determined by the Committee.  Any
determination made hereunder shall be final, binding and conclusive on the
Grantee and the Company for all purposes.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date first above
written.

 

 

	
   

  	
  AARON RENTS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANTEE:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

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