Document:

exv10w22

 

EXHIBIT 10.22

EMPLOYMENT AGREEMENT

          AGREEMENT made on October 2, 2006, by and between RENT-A-CENTER, INC. (the “Company”) and MARK
E. SPEESE (“Mr. Speese”).

     1. Employment. The Company desires to enter into a written agreement to employ Mr.
Speese upon and subject to the terms and conditions set forth herein, and Mr. Speese hereby agrees
to be employed by the Company upon and subject to such terms and conditions.

     2. Certain Defined Terms. The following terms have the following meanings when used in
this Agreement.

          (a) “Accrued Compensation” means, as of any date, (1) the unpaid amount, if any, of Mr.
Speese’s previously earned base salary, (2) the unpaid amount, if any, of the bonus earned by Mr.
Speese for the preceding year, and (3) additional payments or benefits, if any, earned by Mr.
Speese under and in accordance with any employee plan, program or arrangement of or with the
Company or an Affiliate (other than this Agreement).

          (b) “Affiliate” means an entity at least 50% of the voting, capital or profits interests of
which are owned directly or indirectly by the Company.

          (c) “Benefit Continuation Coverage” means continuing group health insurance coverage for
Executive and, where applicable, Executive’s covered spouse and covered eligible dependents for a
specified period following the termination of Executive’s Employment with Company and its
Affiliates at the same benefit and contribution levels that would be in effect if the Executive’s
employment had continued, if and to the extent such coverage would be permitted by the applicable
plan and applicable law. Benefit Continuation Coverage, if any, shall be in addition to and not in
lieu of COBRA coverage. Unless sooner terminated, Benefit Continuation Coverage will be subject to
early termination if and when the Executive becomes entitled to comparable coverage from another
employer.

          (d) “Board” means the Board of Directors of the Company.

          (e) “Cause” means (1) material act or acts of willful misconduct by Mr. Speese, whether in
violation of the Company’s policies, including, without limitation, the Company’s Code of Business
Conduct and Ethics, or otherwise; (2) Mr. Speese’s willful and repeated failure (except where due
to physical or mental incapacity) or refusal to perform in any material respect the duties and
responsibilities of Mr. Speese’s employment; (3) embezzlement or fraud committed by Mr. Speese, at
Mr. Speese’s direction, or with Mr. Speese’s prior personal knowledge; (4) Mr. Speese’s conviction
of, or plea of guilty or nolo contendere to, the commission of a felony; or (5) substance
abuse or use of illegal drugs that, in the reasonable judgment of the Compensation Committee, (A)
impairs the ability of Mr. Speese to perform the duties of Mr. Speese’s employment, or (B) causes
or is likely to cause harm or embarrassment to the Company or any of its Affiliates. Except as
specified, the Compensation Committee, acting in its own discretion, will be responsible for
determining whether particular conduct constitutes “Cause” for the purposes of this Agreement.

 

 

          (f) “Change in Control” means the occurrence of any of the following after the date of this
Agreement:

     (i) any person (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (“Exchange Act”)) becomes the beneficial
owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 40%
or more of the combined voting power of the then outstanding voting securities of
the Company;

     (ii) a consolidation, merger or reorganization of the Company, unless (1) the
stockholders of the Company immediately before such consolidation, merger or
reorganization own, directly or indirectly, at least a majority of the combined
voting power of the outstanding voting securities of the corporation or other entity
resulting from such consolidation, merger or reorganization, (2) individuals who
were members of the Board immediately prior to the execution of the agreement
providing for such consolidation, merger or reorganization constitute a majority of
the board of directors of the surviving corporation or of a corporation directly or
indirectly beneficially owning a majority of the voting securities of the surviving
corporation, and (3) no person beneficially owns more than 40% of the combined
voting power of the then outstanding voting securities of the surviving corporation
(other than a person who is (A) the Company or a subsidiary of the Company, (B) an
employee benefit plan maintained by the Company, the surviving corporation or any
subsidiary, or (C) the beneficial owner of 40% or more of the combined voting power
of the outstanding voting securities of the Company immediately prior to such
consolidation, merger or reorganization);

     (iii) individuals who, as of the date of this Agreement, constitute the entire
Board (the “Incumbent Board”) cease for any reason to constitute a majority of the
Board, provided that any individual becoming a director subsequent to the date of
this Agreement whose appointment or nomination for election by the Company’s
stockholders, was approved by a vote of at least two-thirds of the directors then
comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board;

     (iv) approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company, or a sale or other disposition of all or substantially
all of the assets of the Company (other than to an entity described in (f)(ii)
above); or

     (v) any other event or transaction which the Board, acting in its discretion,
designates is a Change in Control.

          (g) “Code” means the Internal Revenue Code of 1986, as amended.

          (h) “Company” means Rent-A-Center, Inc. and any successor thereto.

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          (i) “Compensation Committee” means the Compensation Committee of the Board.

          (j) “Disability” means the inability of Mr. Speese to substantially perform the customary
duties and responsibilities of Mr. Speese’s Employment with the Company or an Affiliate for a
period of at least 120 consecutive days or 120 days in any 12-month period by reason of a physical
or mental incapacity which is expected to result in death or last indefinitely, as determined by a
duly licensed physician appointed by the Company.

          (k) “Employment” means Mr. Speese’s employment with the Company and/or any of its Affiliates.

          (l) “Good Reason” means the occurrence of any of the following without the written consent of
Mr. Speese: (1) a material diminution by the Company or an Affiliate of Mr. Speese’s duties or
responsibilities in a manner which is inconsistent with Mr. Speese’s position or which has or is
reasonably likely to have a material adverse effect on Mr. Speese’s status or authority, provided,
however, that a change in Mr. Speese’s position as Chairman of the Board shall not be considered a
material diminution in Mr. Speese’s duties or responsibilities or having or reasonably likely to
have a material adverse effect on Mr. Speese’s status or authority within the meaning of “Good
Reason” if a majority of the independent directors of the Board (such independent directors being
determined in accordance with securities listing standards then applicable to the Company’s common
stock), (a) upon the advice of counsel, determines such change in position is required to comply
with such applicable securities listing standard or any law or regulation applicable to the
Company, or (b) in their reasonable discretion, determines such a change in position to be in the
best interest of the Company to comply with appropriate corporate governance practices or for
similar reasons; (2) a relocation by more than 50 miles of Mr. Speese’s principal place of
business; or (3) a reduction by the Company or an Affiliate of Mr. Speese’s rate of salary or
annual incentive opportunity or a breach by the Company or any of its Affiliates of a material
provision of this Agreement which is not corrected within 15 business days following notice thereof
by Mr. Speese to the Company.

          (m) “Pro Rata Bonus” means the annual bonus, if any, earned by Mr. Speese for the calendar
year preceding the year in which Mr. Speese’s Employment terminates multiplied by a fraction, the
numerator of which is the number of days elapsed from the beginning of the calendar year in which
Mr. Speese’s Employment terminates until the date Mr. Speese’s Employment terminates, and the
denominator of which is 365. If Mr. Speese’s Employment terminates before April 1 of a calendar
year, the Pro Rata Bonus for such calendar year shall be deemed to be zero.

          (n) “Salary & Bonus” means, as of the effective date of the termination of Mr. Speese’s
Employment with the Company and its Affiliates, the sum of: (1) Mr. Speese’s highest annual rate of
salary at any time during the preceding 24 months, and (2) Mr. Speese’s average annual bonus for
the two preceding calendar years.

          (o) “Transfer Restrictions” means the contractual restrictions against the sale or transfer of
Company stock acquired upon the exercise of the special option granted to Mr. Speese pursuant to
Section 6 of this Agreement.

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     3. Term. The term of this Agreement will be begin on the date hereof and will end on
December 31, 2009, unless sooner terminated in accordance with the provisions of Section 8 or
Section 9 hereof. The term of this Agreement will be renewed for successive one year renewal
periods unless (a) at least 90 days before the end of the initial term or a renewal term, either
party gives written notice of non-renewal to the other, or (B) Mr. Speese’s employment is sooner
terminated pursuant to Section 8 or Section 9 of this Agreement.

     4. Position and Duties. During the term of this Agreement, Mr. Speese shall serve as
the Chairman of the Board and the Chief Executive Officer of the Company. The Company agrees to use
its reasonable best efforts to cause Mr. Speese to be a member of the Board. Mr. Speese shall
report directly to the Board and will have such executive and managerial powers, duties and
responsibilities as are assigned to him by the Board, consistent with his position as Chief
Executive Officer. At the request of the Board, Mr. Speese shall serve as an officer and director
of the Company’s subsidiaries and other affiliates without additional compensation. Mr. Speese
shall devote all of his business time, attention, knowledge and skills faithfully and to the best
of his ability to the performance of the obligations, duties and responsibilities of his position
as Chairman of the Board and Chief Executive Officer of the Company and in furtherance of the
business, affairs, policies, codes of conduct and activities of the Company in the interests of its
shareholders. Subject to the Company’s policies applicable to senior executives generally, Mr.
Speese may engage in personal, charitable, professional and investment activities to the extent
such activities do not conflict or interfere with his obligations to, or his ability to perform the
duties and responsibilities of his employment with the Company.

     5. Annual Compensation.

          (a) Base Salary. During the term of this Agreement, the Company will pay salary to Mr.
Speese at an annual rate of $740,000, in accordance with its regular payroll practices. The Board
and/or the Compensation Committee will review Mr. Speese’s salary at least annually. The Board,
acting in its discretion, may increase (but may not decrease) the annual rate of Mr. Speese’s
salary in effect at any time.

          (b) Bonus. Mr. Speese will be eligible for an annual bonus determined at the sole
discretion of the Compensation Committee. The amount of the annual bonus, if any, will be payable
to Mr. Speese as soon as practicable after the end of the year, consistent with the payment of
annual incentive compensation to senior executives generally.

     6. Additional Compensation. Simultaneously with the execution of this Agreement, the
Company will make a special option grant to Mr. Speese pursuant to the Company’s 2006 Long Term
Incentive Plan. The special option will cover seventy thousand (70,000) shares of the Company’s
common stock and will be fully vested on the date of grant, provided, however, that, except as
otherwise specified in the option agreement, if Mr. Speese exercises the option before December 31,
2009, any shares of the Company stock acquired upon such exercise may not be sold or otherwise
transferred until such date. The Compensation Committee, acting in its discretion, may reduce the
transfer restriction period with respect to some or all of the shares covered by the option. The
terms and conditions of the special option are set forth in a separate option agreement made of
even date herewith between the Company and Mr. Speese.

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     7. Employee Benefit Programs and Perquisites.

          (a) General. Subject to the provisions of this Agreement, Mr. Speese will be entitled
to participate in such qualified and nonqualified employee pension plans, stock option or other
equity or long term incentive compensation plans, group health, long term disability and group life
insurance plans, and any other welfare and fringe benefit plans, arrangements, programs and
perquisites sponsored or maintained by the Company from time to time for the benefit of its
employees generally or its senior executives generally.

          (b) Reimbursement of Business Expenses. Mr. Speese is authorized to incur reasonable
expenses in carrying out his duties and responsibilities under this Agreement, and the Company will
promptly reimburse him for all expenses that are so incurred upon presentation of appropriate
vouchers or receipts, subject to the Company’s expense reimbursement policies applicable to senior
executive officers generally as in effect from time to time.

          (c) Conditions of Employment. Mr. Speese’s place of employment during the term of his
employment under this Agreement will be at the principal office of the Company in Plano, Texas,
subject to the need for business travel. The conditions of Mr. Speese’s employment, including,
without limitation, office space and accouterments, secretarial, administrative and other support,
will be consistent with his status as the Chairman of the Board and the Chief Executive Officer of
the Company.

     8. Termination of Employment. Subject to the provisions hereof, including, without
limitation, Section 12 (relating to the execution and delivery of a release as a condition of Mr.
Speese’s (or a beneficiary’s) entitlement to certain payments and benefits hereunder), upon
termination of Employment, other than a termination of Employment in conjunction with a Change in
Control to which Section 9 applies, Mr. Speese (or Mr. Speese’s beneficiary, as the case may be)
will be entitled to receive the applicable payments and benefits set forth in this Section. For the
purposes hereof, termination of Employment at the expiration of the initial term or a renewal term
due to the Company’s providing notice of non-renewal pursuant to Section 3 of this Agreement will
be deemed to be a termination by the Company without Cause; and, if such a termination is due to
notice of non-renewal by Mr. Speese, it shall be deemed to be a voluntary termination by Mr. Speese
without Good Reason.

          (a) Termination of Employment by the Company without Cause or Mr. Speese for Good
Reason. If Mr. Speese’s Employment is terminated by the Company or an Affiliate without Cause
or by Mr. Speese for Good Reason, then Mr. Speese shall be entitled to receive the following
payments and benefits:

     (i) Accrued Compensation;

     (ii) Pro Rata Bonus;

     (iii) 2.0 times Salary & Bonus, payable to Mr. Speese in equal monthly (or, at
the option of the Company, more frequent) installments;

     (iv) Lapse of any Transfer Restrictions; and

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     (v) Benefit Continuation Coverage for twenty-four months following termination
of Employment.

          (b) Disability or Death. If Mr. Speese’s Employment is terminated by the Company or an
Affiliate due to Mr. Speese’s Disability or if Mr. Speese’s Employment terminates by reason of
death, then Mr. Speese (or Mr. Speese’s beneficiary) shall be entitled to receive the following
payments and benefits:

     (i) Accrued Compensation;

     (ii) Pro Rata Bonus;

     (iii) Lapse of any Transfer Restrictions; and

     (iv) Benefit Continuation Coverage for twelve months.

          (c) Termination by the Company or an Affiliate for Cause or Termination by Mr. Speese
without Good Reason. If the Company or an Affiliate terminates Mr. Speese’s Employment for
Cause or if Mr. Speese terminates such Employment for any reason other than death or for Good
Reason, then Mr. Speese shall be entitled to receive any Accrued Compensation, subject to set off
for amounts owed by Mr. Speese to the Company or an Affiliate, and nothing more.

          (d) Restoration. Any severance payments and benefits paid under this Section 8 shall
be subject to continuing compliance with the covenants described in and repayment pursuant to
Section 13.

     9. Termination in Conjunction with a Change in Control. Subject to the provisions
hereof, including, without limitation, Section 11 (relating to a reduction of severance payments
and benefits in order to avoid adverse tax consequences) and Section 12 (relating to execution and
delivery of a general release as a condition of Mr. Speese’s entitlement to certain payments and
benefits hereunder), upon the termination of Mr. Speese’s Employment with the Company and its
Affiliates in conjunction with a Change in Control, Mr. Speese (or Mr. Speese’s beneficiary, as the
case may be) will be entitled to receive the applicable severance payments and benefits described
in Section 8, provided, however, that, if Mr. Speese’s Employment is terminated by the Company
without Cause or by Mr. Speese for Good Reason in conjunction with a Change in Control, then (a) in
lieu of the installment payout described in Section 8(a)(iii), Mr. Speese shall be entitled to
receive a single sum payment equal to 2.0 times Salary & Bonus within 10 business days following
the date of Mr. Speese’s termination of Employment or, if later, the date of the Change in Control,
and (b) the period of Benefit Continuation Coverage will be thirty-six months (as opposed to
twenty-four months). For the purposes hereof, a termination of Employment is in conjunction with a
Change in Control if (and only if) it occurs during the period beginning six months prior to a
Change in Control (or, in the case of a Change in Control described in Section 2(f)(i) or (ii),
beginning on the date of the definitive agreement pursuant to which the Change in Control is
consummated), and ending on the second anniversary of the date of the Change in Control. If Mr.
Speese is entitled to receive payments and benefits under Section 8 (due to a termination of
Employment not in conjunction with a Change in Control) and if, by reason of a subsequent Change in
Control, Mr. Speese’s termination of Employment is

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deemed to be in conjunction with the Change in Control, then, in order to avoid duplication,
the payments and benefits to which Mr. Speese is entitled under this Section upon and following the
Change in Control will be reduced by the payments and benefits which Mr. Speese received under
Section 8, and no further payments will be made under Section 8. Any severance payments and
benefits paid under this Section 9 shall be subject to continuing compliance with the covenants
described in and repayment pursuant to Section 13.

     10. Effect of a Change in Control on Options and Other Equity-Based Awards. All
Transfer Restrictions shall lapse immediately before a Change In Control. All outstanding Company
stock options and other Company equity-based awards held by Mr. Speese shall become fully vested
immediately before the occurrence of a Change in Control if (a) Mr. Speese is then still employed
by the Company or an Affiliate; or (b) if Mr. Speese’s Employment is terminated by the Company or
an Affiliate without Cause or by Mr. Speese for Good Reason during the pre-Change in Control
severance protection period described in Section 9. If Mr. Speese becomes vested in a stock option
or other equity-based award pursuant to part (b) of the preceding sentence, then, before the Change
in Control, the Company will either reinstate the option or other award to the extent it would
otherwise not be vested, or make a cash payment to Mr. Speese equal to the intrinsic value of the
non-vested portion of the option or other award based upon the then value per share of the
Company’s common stock. The vesting and other terms and conditions of Mr. Speese’s stock options
and other equity-based awards will continue to govern except as otherwise specifically provided by
this Section 10.

     11. Golden Parachute Tax Limitation. If Mr. Speese is entitled to receive payments and
benefits under this Agreement and if, when combined with the payments and benefits Mr. Speese is
entitled to receive under any other plan, program or arrangement of the Company or an Affiliate,
Mr. Speese would be subject to excise tax under Section 4999 of the Code or Company would be denied
a deduction under Section 280G of the Code, then the severance amounts otherwise payable to Mr.
Speese under this Agreement will be reduced by the minimum amount necessary to ensure that Mr.
Speese will not be subject to such excise tax and the Company will not be denied any such
deduction.

     12. Release of Claims. Notwithstanding anything herein to the contrary, the
Compensation Committee or the Board may condition severance payments or benefits otherwise payable
under this Agreement upon the execution and delivery by Mr. Speese (or Mr. Speese’s beneficiary) of
a general release in favor of the Company, its Affiliates and their officers, directors and
employees, in such form as the Board or the Compensation Committee may specify; provided, however,
that no such release will be required as a condition of Mr. Speese’s (or the beneficiary’s)
entitlement to Accrued Compensation. Any payment or benefit that is so conditioned may be deferred
until the expiration of the seven day revocation period prescribed by the Age Discrimination in
Employment Act of 1967, as amended, or any similar revocation period in effect on the effective
date of the termination of Mr. Speese’s Employment.

     13. Restoration. Mr. Speese has been provided and is privy to intellectual property,
trade secrets and other confidential information of the Company and its Affiliates. For two years
following Mr. Speese’s termination of Employment, Mr. Speese has agreed not to engage in any
activity or provide any services which are similar to or competitive with the business of the
Company and its Affiliates. For the same two year period, Mr. Speese also agreed not to solicit

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or induce, or cause or permit others to solicit or induce, any employee to terminate their
employment with the Company and its Affiliates. These covenants are set forth and agreed to in the
Loyalty and Confidentiality Agreement between Mr. Speese and the Company (“Loyalty Agreement”). The
parties hereto understand and acknowledge that the promises in this Agreement and those in the
Loyalty Agreement, and not any employment of or services performed by Mr. Speese in the course and
scope of that employment, constitute the sole consideration for the severance payments and benefits
provided by this Agreement. Further, it is agreed that should Mr. Speese violate or be in breach of
any restrictions set forth herein or in the Loyalty Agreement (which determination shall be made in
the discretion of the Compensation Committee), (a) Mr. Speese shall not be entitled to any further
severance payments and benefits under this Agreement, (b) Mr. Speese shall immediately return to
the Company any severance payments and the value of any severance benefits which were received
hereunder, and (c) Mr. Speese will have no further rights or entitlements under this Agreement.
This Section 13 shall not in any manner supersede or limit any other right the Company may have to
enforce or seek legal or equitable relief based on this Agreement or the Loyalty Agreement.

     14. No Duty to Mitigate. Except as otherwise specifically provided herein with respect
to early termination of Benefit Continuation Coverage, Mr. Speese’s entitlement to payments or
benefits hereunder is not subject to mitigation or a duty to mitigate by Mr. Speese.

     15. Amendment. The Board may amend this Agreement, provided, however, that, no such
action which would have the effect of reducing or diminishing Mr. Speese’s entitlements under this
Agreement shall be effective without the express written consent of Mr. Speese.

     16. Successors and Beneficiaries.

          (a) Successors and Assigns of the Company. The Company shall require any successor or
assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all the business or assets of the Company and its subsidiaries taken as a whole,
expressly and unconditionally to assume and agree to perform or cause to be performed the Company’s
obligations under this Agreement. In any such event, the term “Company,” as used herein shall mean
the Company, as defined in Section 2 hereof, and any such successor or assignee. Mr. Speese
acknowledges and agrees that this Agreement and the Loyalty Agreement shall be fully enforceable by
the Company’s successor or assignee.

          (b) Mr. Speese’s Beneficiary. For the purposes hereof, Mr. Speese’s beneficiary will
be the person or persons designated as such in a written beneficiary designation filed with the
Company, which may be revoked or revised in the same manner at any time prior to Mr. Speese’s
death. In the absence of a properly filed written beneficiary designation or if no designated
beneficiary survives Mr. Speese, Mr. Speese’s estate will be deemed to be the beneficiary
hereunder.

     17. Nonassignability. With the exception of Mr. Speese’s beneficiary designation,
neither Mr. Speese nor Mr. Speese’s beneficiary may pledge, transfer or assign in any way the right
to receive payments or benefits hereunder, and any attempted pledge, transfer or assignment shall
be void and of no force or effect.

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     18. Legal Fees to Enforce Rights after a Change in Control. If, following a Change in
Control, the Company fails to comply with any of its obligations under this Agreement or the
Company takes any action to declare this Agreement void or unenforceable or institutes any
litigation or other legal action designed to deny, diminish or to recover from Mr. Speese (or Mr.
Speese’s beneficiary) the payments and benefits intended to be provided, then Mr. Speese (or Mr.
Speese’s beneficiary, as the case may be) shall be entitled to select and retain counsel at the
expense of the Company to represent Mr. Speese (or Mr. Speese’s beneficiary) in connection with the
good faith initiation or defense of any litigation or other legal action, whether by or against the
Company or any director, officer, stockholder or other person affiliated with the Company or any
successor thereto in any jurisdiction.

     19. Governing Law. This Agreement shall be governed by the laws of the State of
Texas, excluding its conflict of law rules. Any suit with respect to this Agreement will be brought
in the federal or state courts in the districts, which include Dallas, Texas, and Mr. Speese hereby
agrees to submit to the personal jurisdiction and venue thereof.

     20. Compliance with Section 409A Deferral Requirements. This Agreement is intended to
comply with Section 409A of the Code, if and to the extent applicable, and will be interpreted and
applied in a manner consistent with that intention. Toward that end, unless permitted sooner by
Section 409A of the Code, severance amounts otherwise payable within six-months after termination
of employment will be deferred until and become payable on the first day of the seventh month
following termination of Employment.

     21. Withholding. The Company and its Affiliates may withhold from any and all amounts
payable under this Agreement such federal, state and local taxes as may be required to be withheld
pursuant to applicable law.

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

	 	 	 	 	 
	 	 	RENT-A-CENTER, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mitchell E. Fadel
	 

	 	 	 	 
	 

	 	 	 	Mitchell E. Fadel, President and COO
	 
	 	 	 	/s/ Mark E. Speese 
	 	 	 
	 	 	Mark E. Speese

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EXHIBIT 10.23

NON-QUALIFIED

STOCK OPTION AGREEMENT

UNDER THE RENT-A-CENTER, INC.

2006 LONG-TERM INCENTIVE PLAN

     THIS STOCK OPTION AGREEMENT (the “Agreement”) is made and entered into on October 2,
2006 (the “Grant Date”), by and between RENT-A-CENTER, INC., a Delaware corporation (the
“Company”), and MARK E. SPEESE (the “Optionee”).

W I T N E S S E T H:

     WHEREAS, pursuant to the Rent-A-Center, Inc. 2006 Long-Term Incentive Plan (the
“Plan”) and the employment agreement made by the Company and the Optionee of even date
herewith (the “Employment Agreement”), the Company desires to grant to the Optionee, and the
Optionee desires to accept, an option to purchase shares of the Company’s common stock, par value
$0.01 per share (the “Common Stock”), upon the terms and conditions set forth in this
Agreement and the Plan.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained and
other good and valuable consideration, the parties hereto agree as follows:

     1. Grant & Tax Status. The Company hereby grants to the Optionee an option to purchase
up to seventy thousand (70,000) shares of Common Stock, at a purchase price of $29.29 per share
pursuant to the Plan. This option 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. Term. Unless sooner terminated in accordance herewith or the Plan, this option will
automatically expire on the tenth anniversary of the date hereof.

     3. Vesting. This option shall be fully vested and exercisable at all times prior to
its expiration, provided, however, that, in accordance with Section 4, transfer restrictions may
apply to Common Stock acquired upon the exercise of this option.

     4. Transfer Restrictions.

          (a) Non-Transferability of Option. This option may not be assigned or transferred
except upon the Optionee’s death to a beneficiary designated by the Optionee in a manner prescribed
or approved for this purpose by the compensation committee of the Company’s board of directors (the
“Committee”) or, if no designated beneficiary shall survive the Optionee, pursuant to the
Optionee’s will or by the laws of descent and distribution. During the Optionee’s lifetime, this
option may be exercised only by the Optionee or the Optionee’s guardian or legal representative.
Notwithstanding the foregoing, the Committee, in its sole discretion, may permit the inter vivos
transfer of this option by gift to any “family member” (within the meaning of Item A.1.(5) of the
General Instructions to Form S-8 or any successor provision), on such terms and conditions as the
Committee deems appropriate.

 

 

          (b) Restrictions on Transfer of Option Shares. Until the expiration of the Restricted
Period, the Optionee may not sell, assign, transfer, pledge, hedge, hypothecate, encumber or
otherwise dispose of (whether by operation of law or otherwise) any shares of Common Stock acquired
upon the exercise of this option, and such shares will not be subject to execution, attachment or
similar process. Any such sale or transfer, or purported sale or transfer, shall be null and void.
The Company will not be required to recognize on its books any action taken in contravention of
these restrictions. If this option is exercised during the Restricted Period, then (1) until the
expiration of the Restricted Period, (A) the Optionee will be treated as the owner of record of the
shares of Common Stock acquired upon such exercise (the “Restricted Shares”), and (B) the Company
will hold the share certificates for safekeeping, or otherwise retain the Restricted Shares in
uncertificated book entry form until the expiration of the Restriction Period, and any share
certificates (or electronic delivery) representing such Restricted Shares will include a legend to
the effect that the shares are subject to the transfer restrictions set forth above, and (2) upon
the expiration of the Restricted Period, the Company will deliver a share certificate for such
shares to the Optionee (or, if applicable, the Optionee’s beneficiary), or deliver such shares
electronically or in certificate form to a broker designated by the Optionee (or, if applicable,
the Optionee’s beneficiary), free and clear of the above restrictions.

          (c) Definition of Restricted Period. For the purposes of this Agreement, the term
“Restricted Period” shall mean the period beginning on the date hereof and ending on the earliest
of (1) December 31, 2009 (or such earlier date as the Committee, acting in its discretion, may
specify), (2) the termination of the Optionee’s employment by the Company without “cause” or by the
Optionee for “good reason” (as such terms are defined in the Employment Agreement), (3) the day
preceding the consummation of a “change in control” (within the meaning of the Employment
Agreement), (4) the date the Optionee’s employment is terminated due to “disability” (as defined in
the Employment Agreement), and (5) the date of the Optionee’s death.

     5. Termination of Employment or other Service.

          (a) If the Optionee’s employment or other service with the Company or its subsidiaries is
terminated due to the Optionee’s death or “disability,” or if the Optionee dies after termination
of employment and before this option expires, then this option shall remain exercisable by the
Optionee (or, in the event of death, the Optionee’s designated beneficiary or, if no designated
beneficiary survives the Optionee, by the person or persons to whom the Optionee’s rights under
this option shall pass pursuant to the Optionee’s will or by the laws of descent and distribution,
whichever is applicable) during the twelve (12) month period following the date of termination (or
later death, as the case may be) but in no event after expiration of the stated term hereof and, to
the extent not exercised during such period, shall thereupon terminate.

          (b) If the Optionee’s employment or other service with the Company or its affiliates
terminates for any reason other than those set forth in Section 5(a) above, then this option shall
remain exercisable by the Optionee during the three (3) month period following the date of
termination (or until one year from the Optionee’s death if the Optionee dies during such
three-month period), but in no event after expiration of the stated term hereof and, to the extent
not exercised during such three-month (or, if applicable, one-year) period, shall thereupon
terminate.

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     6. Method of Exercise. This option may be exercised by transmitting to the Secretary
of the Company (or such other person designated by the Committee) a written notice identifying the
option being exercised and specifying the number of shares being purchased, together with payment
of the exercise price and the amount of the applicable tax withholding obligations (unless other
arrangements are made for the payment of such exercise price and/or the satisfaction of such
withholding obligations). The exercise price and withholding obligation may be paid in whole or in
part in cash or by check or, following the expiration of the Restricted Period, (a) by means of a
cashless exercise procedure to the extent permitted by law, (b) if permitted by the Committee, by
the surrender of previously-owned shares of Common Stock (to the extent of the fair market value
thereof), and/ or (c) subject to applicable law, by any other form of consideration deemed
appropriate by the Committee.

     7. Stockholder Rights. No shares of Common Stock will be issued in respect of the
exercise of this option until payment of the exercise price and the applicable tax withholding
obligations have been made or arranged to the satisfaction of the Company. The holder of this
option shall have no rights as a stockholder with respect to any shares of Common Stock covered by
this option until the shares of Common Stock are issued pursuant to the exercise of this option.
Shares acquired upon the exercise of this option before the end of the Restricted Period will be
subject to the terms and conditions of Section 4(b).

     8. Compliance with Law. The Company will not be obligated to issue or deliver shares
of Common Stock pursuant to this option unless the issuance and delivery of such shares complies
with applicable law, including, without limitation, the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, and the requirements of any stock exchange or market
upon which the Common Stock may then be listed. The Company may prevent or delay the exercise of
this option if and to the extent the Company deems necessary or advisable in order to avoid a
violation of applicable law or its own policies regarding the purchase and sale of Common Stock.
If, during the period of any such ban or delay, the term of this option would expire, then the term
of this option will be extended for thirty (30) days after the Company removes the restriction
against exercise.

     9. Transfer Orders; Legends. All certificates for shares of Common Stock delivered
under this option shall be subject to such stock-transfer orders and other restrictions as the
Company may deem advisable under the rules, regulations, and other requirements of the Securities
and Exchange Commission, any stock exchange or market upon which the Common Stock may then be
listed, and any applicable federal or state securities law. The Company may cause a legend or
legends to be placed on any such certificates to make appropriate reference to such restrictions.

     10. No Rights Conferred. Nothing contained in the Plan or this Agreement shall confer
upon the Optionee any right with respect to the continuation of his employment or other service
with the Company or its subsidiaries or interfere in any way with the right of the Company and its
subsidiaries at any time to terminate such employment or other service or to increase or decrease,
or otherwise adjust, the other terms and conditions of the Optionee’s employment or other service.

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     11. Obligation to Execute and Return Agreement. This Agreement shall be null and void
and no option shall be granted hereby in the event the Optionee shall fail to execute and return a
counterpart hereof to the Company, at the address set forth in Section 13 hereof, within sixty (60)
days from the Grant Date.

     12. Full Satisfaction/Release of Rights. Any payment or issuance or transfer of shares
of Common Stock to the Optionee or his legal representative, heir, legatee or distributee, in
accordance with the provisions hereof, shall, to the extent thereof, be in full satisfaction of all
claims of such persons hereunder. The Committee may require the Optionee, legal representative,
heir, legatee or distributee, as a condition precedent to such payment or issuance or transfer, to
execute a release and receipt therefor in such form as it shall determine. The parties acknowledge
that this Agreement and the option granted to the Optionee hereunder shall satisfy in full the
obligations of the Company under Section 6 of the Employment Agreement relating to the issuance of
this option.

     13. Notices. Any notice to the Company relating to this Agreement shall be in writing
and delivered in person or by registered mail to the Company at the Company’s main office, 5700
Tennyson Parkway, Suite 100, Plano, TX 75024, or to such other address as may be hereafter
specified by the Company, to the attention of its Secretary. All notices to the Optionee or other
person or persons then entitled to exercise this option shall be delivered to the Optionee or the
Optionee’s address set forth in the records of the Company.

     14. Provisions of the Plan. The provisions of the Plan, the terms of which are hereby
incorporated by reference, shall govern if and to the extent that there are inconsistencies between
those provisions and the provisions hereof. The Optionee acknowledges receipt of a copy of the Plan
prior to the execution of this Agreement. Capitalized terms used but not defined herein shall have
the meanings ascribed to such terms in the Plan.

     15. Miscellaneous. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and permitted assigns. This Agreement
constitutes the entire agreement between the parties with respect to the subject matter hereof and,
except as otherwise provided in the Plan, may not be modified other than by written instrument
executed by the parties.

[Remainder of Page Intentionally Left Blank.]

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

	 	 	 	 	 
	 	 	RENT-A-CENTER, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mitchell E. Fadel
	 

	 	 	 	 
	 

	 	 	 	Mitchell E. Fadel, President and COO
	 
	 	 	 	 
	 

	 	 	 	/s/ Mark E. Speese
	 	 	 
	 	 	Mark E. Speese, Optionee
	 
	 	 	 	 
	 	 	5600 Champions Drive
	 	 	 
	 	 	Street Address (No P.O. Box please)
	 
	 	 	 	 
	 	 	Plano, Texas 75093
	 	 	 
	 	 	City, State and Zip Code

- 5 -

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