Document:

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                                                                    EXHIBIT 10.1

                       AMENDMENT NO. 9 TO CREDIT AGREEMENT

       THIS AMENDMENT NO. 9 TO CREDIT AGREEMENT (the "Amendment") is dated as of
January 2, 2003 and is made by and among RENT-WAY, INC., a Pennsylvania
corporation, for itself and as successor by merger to Rentavision, Inc., a New
York corporation (the "Borrower"), RENT-WAY OF TTIG, L.P., an Indiana limited
partnership (the "Co-Borrower"), each of the GUARANTORS, each of the LENDERS (as
defined in the Credit Agreement defined below), NATIONAL CITY BANK OF
PENNSYLVANIA, in its capacity as administrative agent for the Lenders under the
Credit Agreement (hereinafter referred to in such capacity as the
"Administrative Agent"), BANK OF AMERICA, N.A., in its capacity as documentation
agent for the Lenders, and HARRIS TRUST AND SAVINGS BANK, in its capacity as
syndication agent.

                                   WITNESSETH:

       WHEREAS, the parties hereto are parties to that certain Credit Agreement
dated as of September 23, 1999, as amended by Amendment No. 1 thereto dated as
of November 17, 1999, Amendment No. 2 thereto dated as of December 6, 1999,
Amendment No. 3 thereto dated as of December 7, 1999, Amendment No. 4 thereto
dated as of June 28, 2000, Amendment No. 5 thereto dated as of November 16,
2000, Amendment No. 6 thereto dated as of October 5, 2001, Amendment No. 7
thereto dated as of June 24, 2002, and Amendment No. 8 thereto dated as of
December 13, 2002 (collectively, the "Credit Agreement"), pursuant to which the
Lenders provided to the Borrower and the Co-Borrower, as of the date of
Amendment No. 6 to the Credit Agreement, a revolving credit facility in the
maximum principal amount of $75,000,000, Term Loans A in the principal amount of
$117,567,083.30 and Term Loans B in the principal amount of $170,980,650.64;

       WHEREAS, the Borrower, the Co-Borrower, the Guarantors and the Lenders
are parties to that certain Consent Agreement dated as of December 27, 2002,
pursuant to which the Lenders consented to the sale by the Borrower, the
Co-Borrower and Rent-Way of Michigan, Inc., of certain of their assets to
Rent-A-Center, Inc., a Delaware corporation, pursuant to the terms of that
certain Asset Purchase Agreement dated as of December 17, 2002;

       WHEREAS, the aggregate Revolving Credit Commitments of the Lenders are
currently $50,000,000, the aggregate principal balance outstanding on the Term
Loans A is $90,134,156.57, and the aggregate principal balance outstanding on
the Term Loans B is $166,319,132.93.

       WHEREAS, the Borrower, the Co-Borrower, the Guarantors, the Lenders and
the Administrative Agent desire to amend the Credit Agreement as hereinafter
provided.

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       NOW, THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, covenant and agree as follows

       1.     Defined terms used herein, unless otherwise defined herein, shall
have the meanings ascribed to them in the Credit Agreement, as amended by this
Amendment.

       2.     The following definitions set forth in Section 1.1 are hereby
amended and restated as follows:

              "Base Rate Option shall mean either the Revolving Credit Base Rate
Option, the Term Loan A Base Rate Option, the Term Loan B Base Rate Option OR
THE SUPPLEMENTAL TERM LOAN BASE RATE OPTION.

              Commitment shall mean as to any Lender the aggregate of its
Revolving Credit Commitments, Term Loan A Commitments, Term Loan B Commitments
AND SUPPLEMENTAL TERM LOAN COMMITMENTS, and Commitments shall mean the aggregate
of the Revolving Credit Commitments, Term Loan A Commitments, Term Loan B
Commitments and SUPPLEMENTAL TERM LOAN COMMITMENTS of all of the Lenders.

              Euro-Rate Option shall mean either the Revolving Credit Euro-Rate
Option, the Term Loan A Euro-Rate Option, the Term Loan B Euro-Rate Option or
the SUPPLEMENTAL TERM LOAN EURO-RATE OPTION.

              Loans shall mean collectively and Loan shall mean separately all
Revolving Credit Loans, the Term Loans A, the Term Loans B AND THE SUPPLEMENTAL
TERM LOANS, or any Revolving Credit Loan, Term Loan A, Term Loan B OR
SUPPLEMENTAL TERM LOAN."

       3.     The following new definitions are hereby inserted in Section 1.1
of the Credit Agreement in alphabetical order:

              "Consent Agreement shall mean that certain Consent Agreement dated
as of December 27, 2002, among the Loan Parties and the Required Lenders.

              RAC shall mean Rent-A-Center, Inc., a Delaware corporation.

              RAC Agreement shall mean that certain Asset Purchase Agreement
dated as of December 17, 2002, as amended from time to time in accordance with
the terms of this Agreement and the Consent Agreement, among the Borrower, the
Co-Borrower, Rent-Way of Michigan, Inc., and RAC.

              Supplemental Term Loan shall have the meaning given to such term
in Section 3.1; Supplemental Term Loans shall mean collectively all of the
Supplemental Term Loans.

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              Supplemental Term Loan Base Rate Option shall mean the option of
the Borrower and the Co-Borrower to have Supplemental Term Loans bear interest
at the rate and under the terms and conditions set forth in Section 4.1.4.

              Supplemental Term Loan Commitment shall mean, as to any Lender at
any time, the amount initially set forth opposite its name on Schedule 1.1(C) to
Amendment No. 9 to the Agreement and thereafter on Schedule I to the most recent
Assignment and Assumption Agreement, and Supplemental Term Loan Commitments
shall mean the aggregate Supplemental Term Loan Commitments of all of the
Lenders.

              Supplemental Term Loan Euro-Rate Option shall mean the option of
the Borrower and the Co-Borrower to have Supplemental Term Loans bear interest
at the rate and under the terms and conditions set forth in Section 4.1.4.

              Supplemental Term Loan Maturity Date shall mean the earlier of (i)
the "Closing Date", as such term is defined in the RAC Agreement, or (ii) March
31, 2003.

              Supplemental Term Notes shall mean collectively and Supplemental
Term Note shall mean separately all of the Term Notes of the Borrower and the
Co-Borrower in the form of Exhibit 1.1(T)(3) evidencing the Supplemental Term
Loans, together with all amendments, extensions, renewals, replacements,
refinancings or refunds thereof in whole or in part.

              Term Loans shall mean collectively and Term Loan shall mean
separately all the Term Loans A, the Term Loans B and the Supplemental Term
Loans, or any Term Loan A, Term Loan B or Supplemental Term Loan."

       4.     Sections 3.1 through 3.4 of the Credit Agreement are hereby
amended and restated as follows:

              "3.1   Term Loan Commitments.

              3.1.1  Term Loan A Commitments.

              Subject to the terms and conditions hereof, and relying upon the
representations and warranties herein set forth, each Lender with a Term Loan A
Commitment severally agrees to continue the advance of a term loan (the "Term
Loan A") to the Borrower and the Co-Borrower on the Closing Date in an amount
equal to such Lender's Term Loan A Commitment, which amount represents the then
current outstanding principal balance of such Term Loan A as of the Closing
Date.

              3.1.2  Term Loan B Commitments.

              Subject to the terms and conditions hereof, and relying upon the
representations and warranties herein set forth, each Lender with a Term Loan B
Commitment severally agrees to continue the advance of a term loan (the "Term
Loan B") to the Borrower and the Co-Borrower in an amount equal to such Lender's
Term Loan B Commitment, which amount represents the then current outstanding
principal balance of such Term Loan B as of the Closing Date.

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              3.1.3 SUPPLEMENTAL TERM LOAN COMMITMENTS.

              SUBJECT TO THE TERMS AND CONDITIONS HEREOF, AND RELYING UPON THE
REPRESENTATIONS AND WARRANTIES HEREIN SET FORTH, EACH LENDER WITH A SUPPLEMENTAL
TERM LOAN COMMITMENT SEVERALLY AGREES TO THE ADVANCE OF A TERM LOAN (THE
"SUPPLEMENTAL TERM LOAN") TO THE BORROWER AND THE CO-BORROWER ON THE EFFECTIVE
DATE OF AMENDMENT NO. 9 TO THE AGREEMENT IN AN AMOUNT EQUAL TO SUCH LENDER'S
SUPPLEMENTAL TERM LOAN COMMITMENT.

              3.2    Nature of Lenders' Obligations with Respect to Term Loans.

                     Each Lender's Term Loans to the Borrower and the
Co-Borrower shall never exceed its Term Loan Commitments. The Term Loan
Commitments are not revolving credit commitments, and the Borrower and the
Co-Borrower shall not have the right to borrow, repay and reborrow under Section
3.1.

              3.3    Term Loan Notes.

                     The Obligation of the Borrower and the Co-Borrower to repay
the unpaid principal amount of the Term Loans made to the Borrower and the
Co-Borrower by each Lender, together with interest thereon, shall continue to be
evidenced by a Term Note dated September 23, 1999, June 28, 2000 OR JANUARY 2,
2003 (or if such Lender was not a party to this Agreement on the effective date
of Amendment No. 4 to this Agreement, then the date that such Lender joined in
this Agreement), payable to the order of each Lender in a face amount equal to
the Term Loan of such Lender prior to the amortization of the Term Loan, IF ANY,
which occurred prior to the Closing Date.

                     The principal amount of the Term Notes A shall continue to
be payable in quarterly payments due on the last day of each December, March,
June and September, beginning with the quarter ending December 31, 2001, and as
follows:

                                                     Amount of Principal Payment
       Quarters Ending on Following Date                 Due on Payment Date
       ---------------------------------             ---------------------------
              December 31, 2001                             $ 5,722,222.22
              March 31, 2002                                $ 5,722,222.22
              June 30, 2002                                 $ 5,722,222.22
              September 30, 2002                            $ 7,152,777.78
              December 31, 2002                             $ 7,152,777.78
              March 31, 2003                                $ 7,152,777.78
              June 30, 2003                                 $ 7,152,777.78
              September 30, 2003                            $ 8,583,333.33
              December 31, 2003                      remaining principal balance
                                                             outstanding

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                     The principal amount of the Term Notes B shall continue to
be payable in quarterly payments due on the last day of each December, March,
June and September, beginning with the quarter ending December 31, 2001, and as
follows:

                                                     Amount of Principal Payment
       Quarters Ending on Following Date                 Due on Payment Date
       ---------------------------------             ---------------------------

              December 31, 2001                             $ 443,750.00
              March 31, 2002                                $ 443,750.00
              June 30, 2002                                 $ 443,750.00
              September 30, 2002                            $ 443,750.00
              December 31, 2002                             $ 443,750.00
              March 31, 2003                                $ 443,750.00
              June 30, 2003                                 $ 443,750.00
              September 30, 2003                            $ 443,750.00
              December 31, 2003                      remaining principal balance
                                                             outstanding

                     THE PRINCIPAL AMOUNT OF THE SUPPLEMENTAL TERM NOTES SHALL
BE PAYABLE IN FULL ON THE EARLIER OF (i) THE "CLOSING DATE" AS SUCH TERM IS
DEFINED IN THE RAC AGREEMENT, OR (ii) MARCH 31, 2003.

       3.4    Use of Proceeds.

              The proceeds of the Term Loans shall be used in accordance with
Section 8.1.10."

       5.     Section 4.1.4 of the Credit Agreement is hereby Amended and
Restated as follows:

              "4.1.4 SUPPLEMENTAL TERM LOAN INTEREST RATE OPTIONS; RATE
QUOTATIONS.

                     THE BORROWER AND THE CO-BORROWER SHALL HAVE THE RIGHT TO
SELECT FROM THE FOLLOWING INTEREST RATE OPTIONS APPLICABLE TO THE SUPPLEMENTAL
TERM LOANS:

              (i)    SUPPLEMENTAL TERM LOAN BASE RATE OPTION: A FLUCTUATING RATE
       PER ANNUM (COMPUTED ON THE BASIS OF A YEAR OF 365 OR 366 DAYS, AS THE
       CASE MAY BE, AND ACTUAL DAYS ELAPSED) EQUAL TO THE BASE RATE PLUS THE
       APPLICABLE MARGIN, SUCH INTEREST RATE TO CHANGE AUTOMATICALLY FROM TIME
       TO TIME EFFECTIVE AS OF THE EFFECTIVE DATE OF EACH CHANGE IN THE BASE
       RATE OR APPLICABLE MARGIN; OR

              (ii)   SUPPLEMENTAL TERM LOAN EURO-RATE OPTION: A RATE PER ANNUM
       (COMPUTED ON THE BASIS OF A YEAR OF 360 DAYS AND ACTUAL DAYS ELAPSED)
       EQUAL TO THE EURO-RATE PLUS THE APPLICABLE MARGIN, SUCH INTEREST RATE TO
       CHANGE AUTOMATICALLY FROM TIME TO TIME EFFECTIVE AS OF THE EFFECTIVE DATE
       OF EACH CHANGE IN THE APPLICABLE MARGIN.

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                     The Borrower and the Co-Borrower may call the
Administrative Agent on or before the date on which a Loan Request is to be
delivered to receive an indication of the rates then in effect, but it is
acknowledged that such projection shall not be binding on the Administrative
Agent or the Lenders nor affect the rate of interest which thereafter is
actually in effect when the election is made."

       6.     Section 4.2.3 of the Credit Agreement is hereby Amended and
Restated as follows:

              "4.2.3 Termination Before Expiration Date.

                     the Borrower and the Co-Borrower shall not select, convert
to or renew an Interest Period for any portion of the Revolving Credit Loans
that would end after the Expiration Date, any portion of the Term Loans A that
would end after the Term Loan A Maturity Date, any portion of the Term Loans B
that would end after the Term Loan B Maturity Date, OR ANY PORTION OF THE
SUPPLEMENTAL TERM LOANS THAT WOULD END AFTER THE SUPPLEMENTAL TERM LOAN MATURITY
DATE; and"

       7.     Section 4.5 of the Credit Agreement is hereby Amended and Restated
as follows:

       "4.5   Selection of Interest Rate Options.

              If the Borrower and the Co-Borrower fail to select a new Interest
Period to apply to any Borrowing Tranche of Loans under the Euro-Rate Option at
the expiration of an existing Interest Period applicable to such Borrowing
Tranche in accordance with the provisions of Section 4.2, the Borrower and the
Co-Borrower shall be deemed to have converted such Borrowing Tranche to the
Revolving Credit Base Rate Option, the Term Loan A Base Rate Option, the Term
Loan B Base Rate Option OR THE SUPPLEMENTAL TERM LOAN BASE RATE OPTION, as
applicable, commencing upon the last day of the existing Interest Period."

       8.     Section 5.3 of the Credit Agreement is hereby amended and restated
as follows:

       "5.3   Interest Payment Dates.

              With the exception of that portion of the interest which is
payment-in-kind interest in the amount of 450 basis points or 500 basis points,
as the case may be, per annum, subject to adjustment as set forth on Schedule
1.1(A) (the "Payment-in-Kind Interest"), interest on Loans to which the Base
Rate Option applies shall be due and payable in arrears on the first Business
Day of each January, April, July and October after the date hereof and on the
Expiration Date or upon acceleration of the Notes. With the exception of that
portion of the interest which is Payment-in-Kind Interest, interest on Loans to
which the Euro-Rate Option applies shall be due and payable on the last day of
each Interest Period for those Loans and, if such Interest Period is longer than
three (3) Months, also on the 90th day of such Interest Period. Payment-in-Kind
Interest shall be due and payable in cash on DECEMBER 31, 2003, or upon
acceleration of the Notes. Interest on the principal amount of each Loan or
other monetary Obligations shall be due and payable on demand after such
principal amount or other monetary Obligations become due and payable (whether
on the stated maturity date, upon acceleration or otherwise)."

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       9.     Section 5.4.1 of the Credit Agreement is hereby amended and
restated as follows:

              "5.4.1 Right to Repay.

                     The Borrower and the Co-Borrower shall have the right at
their option from time to time to pay the Loans in whole or part without premium
or penalty, except for such premiums, penalties and other payments provided for
in Section 5.4.3 below or in Section 5.6:

              (i)    at any time with respect to any Loan to which the Base Rate
Option or Euro-Rate Option applies;

              (ii)   on the date specified in a notice by any Lender pursuant to
Section 4.4 [Euro-Rate Unascertainable] with respect to any Loan to which a
Euro-Rate Option applies.

                     Whenever the Borrower and the Co-Borrower desire to repay
any part of the Loans, they shall provide a repayment notice to the
Administrative Agent at least one (1) Business Day prior to the date of
repayment of the Revolving Credit Loans or the Term Loans setting forth the
following information:

              (x)    the date, which shall be a Business Day, on which the
       proposed prepayment is to be made;

              (y)    a statement indicating the application of the prepayment
       between the Revolving Credit Loans and Term Loans, provided however, that
       all prepayments which relate to the Term Loans shall be applied by the
       Administrative Agent (a) FIRST, TO THE OUTSTANDING PRINCIPAL BALANCE OF
       THE SUPPLEMENTAL TERM LOANS, PAYABLE RATABLY TO EACH LENDER WITH A
       SUPPLEMENTAL TERM LOAN, AND (b) SECOND, to the outstanding principal
       balance of the Term Loans A and Term Loans B based upon the Ratable Share
       of such Term Loan to all the Term Loans, and provided further, each
       Lender with principal outstanding under its Term Loan B shall have the
       right to refuse such prepayment in accordance with the term of Section
       5.5.1[Excess Cash Flow]; and

              (z)    the total principal amount of such repayment, which shall
       not be less than $1,000,000 for any Revolving Credit Loans or Term Loans.

              All repayment notices shall be irrevocable. The principal amount
of the Loans for which a repayment notice is given, together with interest
(excluding Payment-in-Kind Interest) on such principal amount except with
respect to Loans to which the Base Rate Option applies, shall be due and payable
on the date specified in such repayment notice as the date on which the proposed
repayment is to be made. All Term Loan prepayments permitted pursuant to this
Section 5.4.1 shall be applied to the unpaid installments of principal of the
Term Loans in the inverse order of scheduled maturities. Except as provided in
Section 4.4.3, if the Borrower and the Co-Borrower repay a Loan but fails to
specify the applicable Borrowing Tranche which the Borrower and the Co-Borrower
are repaying, the repayment shall be applied (i) first to

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Revolving Credit Loans and then to Term Loans, as provided in Section 5.5.1; and
(ii) after giving effect to the allocations in clause (i) above and in the
preceding sentence, first to Loans to which the Base Rate Option applies, then
to Loans to which the Euro-Rate the Option applies. Any repayment hereunder
shall be subject to the Borrower's and the Co-Borrower' Obligation to indemnify
the Lenders under Section 5.6.2."

       10.    Section 5.5 of the Credit Agreement is hereby amended and restated
as follows:

       "5.5   Mandatory Prepayments.

              5.5.1  Excess Cash Flow.

              Within five (5) Business Days of the delivery of the Borrower's
annual financial statements pursuant to Section 8.3.3 [Annual Financial
Statements] commencing with the financial statements for the fiscal year ended
September 30, 2002, but in any event no later than January 5 of each year
commencing January 5, 2003 (each, a "Mandatory Prepayment Date"), the Borrower
and the Co-Borrower shall make a mandatory prepayment of principal on the Term
Loans equal to 75% of Excess Cash Flow for the immediately preceding fiscal
year, subject to a credit for voluntary prepayments made pursuant to Section 5.4
[Voluntary Prepayments] during the immediately preceding fiscal year, together
with accrued interest (excluding Payment-in-Kind Interest) on such principal
amount (each, a "Mandatory Prepayment of Excess Cash Flow"). Each Mandatory
Prepayment of Excess Cash Flow shall be applied by the Administrative Agent (a)
FIRST, TO THE OUTSTANDING PRINCIPAL BALANCE OF THE SUPPLEMENTAL TERM LOANS,
PAYABLE RATABLY TO EACH LENDER WITH A SUPPLEMENTAL TERM LOAN, and (b) second to
the outstanding principal balance of the Term Loans A and Term Loans B based
upon the Ratable Share of such Term Loan to all the Term Loans, in each case by
application to the unpaid installments of principal in the inverse order of
scheduled maturities. Upon its receipt of the annual financial statements of the
Borrower and receipt of payment by the Borrower and the Co-Borrower of the
Mandatory Prepayment of Excess Cash Flow, the Administrative Agent shall give
the Lenders with outstanding principal on the Term Loans B notice of the amount
of the Mandatory Prepayment of Excess Cash Flow. In the event that any one or
more Lender with Term Loans B outstanding elects not to receive its pro rata
share of such prepayment, such Lender shall provide written notice of the amount
it elects not to receive in prepayment of its Term Loan B, and such amount shall
be reallocated to payment of the Term Loans A based upon the Ratable Share of
the Lenders with Term Loans A, to be applied by the Lenders with Term Loans A in
the inverse order of scheduled maturities. To the extent that a Mandatory
Prepayment of Excess Cash Flow exceeds the outstanding principal amount of the
Term Loans, such prepayment shall be limited to the amount necessary to prepay
the Term Loans in full.

              5.5.2  Sale of Assets; Issuance of Stock; Incurrence of
Indebtedness; Casualty Events.

              (i)    UPON THE "CLOSING DATE" AS DEFINED IN THE RAC AGREEMENT
       APPROVED BY THE LENDERS PURSUANT TO THE CONSENT AGREEMENT, THE LOAN
       PARTIES SHALL (x) FUND INTO A CASH COLLATERAL ACCOUNT UNDER THE SOLE
       CONTROL OF THE ADMINISTRATIVE AGENT (THE "RAC CASH COLLATERAL ACCOUNT")
       $24,500,000 TO BE USED BY THE LOAN PARTIES FOR THE PAYMENT OF CERTAIN OF
       THE LOAN PARTIES' EXPENSES INCURRED AS A RESULT OF THE

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       SALE UNDER THE RAC AGREEMENT, AND (y) MAKE A MANDATORY PREPAYMENT OF
       PRINCIPAL TO THE ADMINISTRATIVE AGENT EQUAL TO THE NET AFTER-TAX CASH
       PROCEEDS OF THE SALE TO RAC MINUS THE AMOUNT FUNDED INTO THE CASH
       COLLATERAL ACCOUNT. EACH MANDATORY PREPAYMENT UNDER THE PRECEDING
       SENTENCE SHALL BE APPLIED BY THE ADMINISTRATIVE AGENT (a) FIRST, TO THE
       OUTSTANDING PRINCIPAL BALANCE OF THE SUPPLEMENTAL TERM LOANS, PAYABLE
       RATABLY TO EACH LENDER WITH A SUPPLEMENTAL TERM LOAN, (b) SECOND, TO THE
       REVOLVING CREDIT LOANS IN THE AMOUNT OF $5,000,000, AND (c) THIRD, TO THE
       OUTSTANDING PRINCIPAL BALANCE OF THE TERM LOANS A AND TERM LOANS B BASED
       UPON THE RATABLE SHARE OF SUCH TERM LOANS TO ALL THE TERM LOANS A AND
       TERM LOANS B, IN EACH CASE BY APPLICATION TO THE UNPAID INSTALLMENTS OF
       PRINCIPAL IN THE INVERSE ORDER OF SCHEDULED MATURITIES. UPON THE DATE OF
       ANY SUBSEQUENT PAYMENTS MADE BY RAC TO THE LOAN PARTIES UNDER THE RAC
       AGREEMENT FOR CONSIDERATION TO BE PAID BY RAC AFTER SUCH CLOSING DATE,
       THE LOAN PARTIES SHALL MAKE A MANDATORY PREPAYMENT OF PRINCIPAL TO THE
       ADMINISTRATIVE AGENT IN THE AMOUNT OF THE NET AFTER TAX PROCEEDS OF SUCH
       PAYMENTS, TO BE APPLIED BY THE ADMINISTRATIVE AGENT TO THE OUTSTANDING
       PRINCIPAL BALANCE OF THE TERM LOANS A AND TERM LOANS B BASED UPON THE
       RATABLE SHARE OF SUCH TERM LOANS TO ALL THE TERM LOANS A AND TERM LOANS
       B, IN EACH CASE BY APPLICATION TO THE UNPAID INSTALLMENTS OF PRINCIPAL IN
       THE INVERSE ORDER OF SCHEDULED MATURITIES. ON THE EARLIEST OF (x) THE SIX
       MONTH ANNIVERSARY OF THE CLOSING DATE, AS DEFINED IN THE RAC AGREEMENT,
       (y) THE BORROWER'S CERTIFICATION THAT ALL EXPENSES INCURRED BY THE LOAN
       PARTIES AS A RESULT OF THE SALE UNDER THE RAC AGREEMENT HAVE BEEN PAID OR
       SATISFIED, OR (z) THE ACCELERATION OF THE LOANS UNDER SECTION 9.2, THE
       FUNDS REMAINING IN THE CASH COLLATERAL ACCOUNT SHALL BE APPLIED BY THE
       ADMINISTRATIVE AGENT TO THE OUTSTANDING PRINCIPAL BALANCE OF THE TERM
       LOANS A AND TERM LOANS B BASED UPON THE RATABLE SHARE OF SUCH TERM LOANS
       TO ALL THE TERM LOANS A AND TERM LOANS B, IN EACH CASE BY APPLICATION TO
       THE UNPAID INSTALLMENTS OF PRINCIPAL IN THE INVERSE ORDER OF SCHEDULED
       MATURITIES.

              (ii)   Within five (5) Business Days of any sale of assets
       authorized by Section 8.2.7(ii), (iv) or (v), exclusive of the sale to
       RAC under the RAC Agreement, and if the net after-tax cash proceeds of
       such sale, when aggregated with all such prior asset sales in the same
       fiscal year of the Borrower, is equal to or greater than $250,000, the
       Borrower and the Co-Borrower shall make a mandatory prepayment of
       principal equal to the net after-tax cash proceeds of such sale to the
       extent the aggregate net after-tax cash proceeds of such sale and all
       prior such assets sales in the fiscal year exceed $250,000 (as estimated
       in good faith by the Borrower and the Co-Borrower). At the time of any
       issuance of equity by the Borrower authorized by Section 8.2.13(iv), then
       simultaneously with the issuance of such capital stock by the Borrower,
       the Borrower shall make a mandatory prepayment of principal equal to the
       net after-tax cash proceeds of such issuance. In the event that the
       Required Lenders permit the incurrence of Indebtedness other than as
       permitted under Section 8.2.1, the Borrower shall make a mandatory
       prepayment of principal equal to the net cash proceeds of such
       Indebtedness. In the event that the Administrative Agent does not
       disburse insurance proceeds in excess of $250,000 to the Loan Parties
       pursuant to Section 8.1.3, such proceeds shall be applied as a mandatory
       prepayment of principal equal to the amount of such insurance proceeds.
       All prepayments pursuant to this Section 5.5.2 (ii) shall be applied in
       accordance with the provisions of Section 5.5.1, and upon payment in full
       of the Term Loans, then as a

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       permanent reduction to the Revolving Credit Commitments. In the event
       that any one or more Lenders with Term Loans B outstanding elects not to
       receive its pro rata share of such prepayments, such Lender shall provide
       written notice of the amount it elects not to receive in prepayment of
       its Term Loan B, and such amount shall be reallocated to payment of the
       Term Loans A based upon the Ratable Share of the Lenders with Term Loans
       A, to be applied by the Lenders with Term Loans A in the inverse order of
       scheduled maturities.

              5.5.3  Application Among Interest Rate Options.

                     All prepayments required pursuant to this Section 5.5 shall
first be applied among the Interest Rate Options to the principal amount of the
Loans subject to the Base Rate Option, then to Loans subject to a Euro-Rate
Option. In accordance with Section 5.6.2, the Borrower and the Co-Borrower shall
indemnify the Lenders for any loss or expense, including loss of margin,
incurred with respect to any such prepayments applied against Loans subject to a
Euro-Rate Option on any day other than the last day of the applicable Interest
Period."

       11.    The following new Section 11.20 is hereby inserted in the Credit
Agreement immediately following Section 11.19 of the Credit Agreement:

              "11.20 Amendment of Terms of Supplemental Term Loans.

                     Without the written consent of all the Lenders which have
Supplemental Term Loan Commitments and until the Supplemental Term Loans are
paid in full, no agreement or amendment may be made, the effect of which is to
(i) increase the amount of the Supplemental Term Loan Commitment of such Lender
without such Lender's written consent, (ii) extend the Supplemental Term Loan
Maturity Date, (iii) extend the time for any regularly scheduled payment or
prepayment (including payment upon the Closing Date under the RAC Agreement) of
principal or interest of any Supplemental Term Loan, reduce the principal amount
of or the rate of interest borne by any Supplemental Term Loan, or reduce any
fee payable to the Supplemental Term Loan Lenders, or (iv) except for sales of
assets permitted by Section 8.2.7, release any Collateral, any Guarantor from
its Obligations under the Guaranty Agreement or any other security for the
Supplemental Term Loans."

       12.    Schedule 1.1(A) to the Credit Agreement is hereby amended and
restated as set forth on the revised Schedule 1.1 (A) attached to this
Amendment.

       13.    In consideration for the Supplemental Term Loans Commitments and
Supplemental Term Loans, the Borrower and the Co-Borrower hereby agree to pay to
each Lender providing a Supplemental Term Loan Commitment a closing fee in an
amount equal to 250 basis points of each such Lender' Supplemental Term Loan
Commitment, which fee shall be deemed to be earned as of the date of this
Amendment.

       14.    The effectiveness of this Amendment is expressly conditioned upon
satisfaction of each of the following conditions precedent:

       (a)    The representations and warranties of the Loan Parties contained
in Article VI of the Credit Agreement shall be true and accurate on the date
hereof with the same effect as though

                                       10
<PAGE>

such representations and warranties had been made on and as of such date (except
representations and warranties which relate solely to an earlier date or time,
which representations and warranties shall be true and correct on and as of the
specific dates or times referred to therein), and the Loan Parties shall have
performed and complied with all covenants and conditions under the Loan
Documents and hereof; no Event of Default or Potential Default under the Credit
Agreement and the other Loan Documents shall have occurred and be continuing or
shall exist, and an Authorized Officer shall have delivered to the
Administrative Agent for the benefit of each Lender a duly executed certificate
dated the date hereof certifying as to the items in this Section 14(a).

       (b)    Organization, Authorization and Incumbency. There shall be
delivered to the Administrative Agent for the benefit of each Lender a
certificate, dated as of the date hereof and signed by the Secretary or an
Assistant Secretary of the Borrower, the Co-Borrower and each Guarantor,
certifying as appropriate as to:

              (i)    all action taken by such party in connection with this
       Amendment and the other Loan Documents;

              (ii)   the names of the officer or officers authorized to sign
       this Amendment and the true signatures of such officer or officers; and

              (iii)  copies of its organizational documents, including its
       certificate of incorporation and bylaws if it is a corporation, its
       certificate of partnership and partnership agreement if it is a
       partnership, and its certificate of organization and limited liability
       company operating agreement if it is a limited liability company, in each
       case as in effect on the date hereof, or a certification by the Secretary
       or Assistant Secretary of such Loan Party that no change to such
       documents has been effected from the certified copies delivered to the
       Agent and the Lenders in connection with Amendment No. 6 to the Credit
       Agreement.

       (c)    There shall be delivered to the Administrative Agent a written
opinion of counsel dated as of the date hereof Hodgson Russ LLP, counsel for the
Loan Parties, in form and substance satisfactory to the Administrative Agent
with respect to this Amendment and the Supplemental Term Loan Notes.

       (d)    All consents required to effectuate the transactions contemplated
hereby shall have been obtained and copies thereof shall have been delivered to
the Administrative Agent for the benefit of the Lenders.

       (e)    Each of the Guarantors, by its execution below of this Amendment,
hereby confirms its continuing obligations under the Guaranty Agreement and the
other Loan Documents to which it is a party or to which it joined pursuant to a
Guarantor Joinder, and each of the Guarantors hereby confirms its continuing
obligations under the Guaranty by execution and delivery of this Amendment. Each
of the Guarantors represents and warrants that it is a party to the Guaranty
Agreement, either by execution of the Guaranty Agreement or by joinder to the
Guaranty Agreement in accordance with the provisions of Section 11.18 of the
Credit Agreement.

                                       11
<PAGE>

       (f)    All legal details and proceedings in connection with the
transactions contemplated by this Amendment shall be in form and substance
satisfactory to the Administrative Agent, the Administrative Agent shall have
received from the Loan Parties and the Required Lenders an executed original of
this Amendment and the Administrative Agent shall have received all such other
counterpart originals or certified or other copies of such documents and
proceedings in connection with such transactions, in form and substance
satisfactory to the Administrative Agent.

       (g)    The Borrower and the Co-Borrower shall pay or cause to be paid (i)
to the Administrative Agent for the account of each Lender which provides a
Supplemental Term Loan Commitment the fees provided for in Section 13 of this
Amendment.

       15.    Except as otherwise expressly modified by this Amendment, the
Credit Agreement and the other Loan Documents are hereby ratified and confirmed
and shall remain in full force and effect after the date hereof.

       16.    This Amendment shall be deemed to be a contract under the laws of
the Commonwealth of Pennsylvania and for all purposes shall be governed by and
construed and enforced in accordance with the internal laws of the Commonwealth
of Pennsylvania without regard to its conflict of laws principles.

       17.    This Amendment shall be dated as of and shall be binding,
effective and enforceable upon the date of (i) satisfaction of all conditions
set forth in Section 14 hereof and (ii) receipt by the Administrative Agent of
duly executed original counterparts of this Amendment from the Loan Parties, the
Required Lenders and each Lender with a Supplemental Term Loan Commitment, and
from and after such date, this Amendment shall be binding upon the Borrower, the
Co-Borrower, each Guarantor, each Lender and the Administrative Agent and their
respective successors and assigns permitted by the Credit Agreement.

                              [INTENTIONALLY BLANK]

                                       12
<PAGE>

         [SIGNATURE PAGE 1 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

       IN WITNESS WHEREOF, the parties hereto, intending to be legally bound
hereby, have caused this Amendment No. 9 to Credit Agreement to be executed and
delivered as of the day and year first above written.

                                          RENT-WAY, INC., "Borrower"

                                          By: /s/ William A. McDonnell
                                             -----------------------------------
                                          Name: William A. McDonnell
                                          Title: Vice President
[Seal]

                                          RENT-WAY OF TTIG, L.P., "Co-Borrower"
                                          By: Rent-Way Developments, Inc.,
                                          its General Partner

                                          By: /s/ William A. McDonnell
                                             -----------------------------------
                                          Name: William A. McDonnell
                                          Title: Vice President
[Seal]

                                          ACTION RENT-TO-OWN HOLDINGS OF
                                          SOUTH CAROLINA, INC., "Guarantor"

                                          By: /s/ William A. McDonnell
                                             -----------------------------------
                                          Name: William A. McDonnell
                                          Title: Vice President
[Seal]

<PAGE>

         [SIGNATURE PAGE 2 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                          RENT-WAY OF TOMORROW, INC.
                                          "Guarantor"

                                          By: /s/ William A. McDonnell
                                             -----------------------------------
                                          Name: William A. McDonnell
                                          Title : Vice President
[Seal]

                                          RENT-WAY OF MICHIGAN, INC.
                                          "Guarantor"

                                          By: /s/ William A. McDonnell
                                             -----------------------------------
                                          Name: William A. McDonnell
                                          Title: Vice President
[Seal]

                                          RENT-WAY DEVELOPMENTS, INC.
                                          "Guarantor"

                                          By: /s/ William A. McDonnell
                                             -----------------------------------
                                          Name: William A. McDonnell
                                          Title: Vice President
[Seal]

                                       2
<PAGE>

         [SIGNATURE PAGE 3 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                          NATIONAL CITY BANK OF PENNSYLVANIA,
                                          as Administrative Agent
                                          and as a Lender

                                          By:
                                             -----------------------------------
                                          Title:
                                                --------------------------------

                                       3
<PAGE>

         [SIGNATURE PAGE 4 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        BANK OF AMERICA, N.A., as Documentation
                                        Agent and as a Lender

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>

         [SIGNATURE PAGE 5 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        HARRIS TRUST AND SAVINGS BANK, as a
                                        Syndication Agent and as a Lender

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
         [SIGNATURE PAGE 6 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        LASALLE BANK NATIONAL ASSOCIATION

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
         [SIGNATURE PAGE 7 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        SUNTRUST BANK

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>

         [SIGNATURE PAGE 8 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        MANUFACTURERS AND TRADERS TRUST COMPANY

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
         [SIGNATURE PAGE 9 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        U.S. BANK, NATIONAL ASSOCIATION,
                                        successor to Firstar Bank,
                                        National Association

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 10 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        FLEET NATIONAL BANK

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 11 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        FIRST DOMINION FUNDING II

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>

        [SIGNATURE PAGE 12 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        FRANKLIN FLOATING RATE TRUST

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 13 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        GENERAL ELECTRIC CAPITAL CORPORATION,
                                        successor to Heller Financial

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>

        [SIGNATURE PAGE 14 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        ARCHIMEDES FUNDING II, LTD.
                                        By: ING Capital Advisors, LLC
                                            as Collateral Manager

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 15 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        ARCHIMEDES FUNDING III, LTD.
                                        By: ING Capital Advisors, LLC
                                            as Collateral Manager

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>

        [SIGNATURE PAGE 16 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        SEQUILS-ING I (HBDGM), LTD.
                                        By: ING Capital Advisors, LLC
                                            as Collateral Manager and Authorized
                                            Signatory

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 17 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        AVALON CAPITAL LTD.
                                        By: INVESCO Senior Secured Management,
                                            Inc. as Portfolio Advisor

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 18 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        CHARTER VIEW PORTFOLIO
                                        By: INVESCO Senior Secured Management,
                                            Inc. as Investment Advisor

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

                                        DIVERSIFIED CREDIT PORTFOLIO LTD.
                                        By: INVESCO Senior Secured Management,
                                            Inc. as Investment Advisor

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

                                        AIM FLOATING RATE FUND
                                        By: INVESCO Senior Secured Management,
                                            Inc. as Attorney in fact

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 19 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                     MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

                                     By:
                                        -------------------------------------
                                     Title:
                                           ----------------------------------

<PAGE>
        [SIGNATURE PAGE 20 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        SIMSBURY CLO, LIMITED
                                        By: Mass Mutual Life Insurance Company
                                            as Collateral Manager

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 21 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        SUFFIELD CLO, LIMITED
                                        By: David L. Babson & Company Inc.,
                                            as Collateral Manager

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 22 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        MERRILL LYNCH SENIOR FLOATING
                                        RATE FUND, INC.

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 23 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        VAN KAMPEN PRIME RATE INCOME TRUST

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 24 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        VAN KAMPEN SENIOR INCOME TRUST

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 25 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        PPM SPYGLASS FUNDING TRUST

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
         [SIGNATURE PAGE 26 OF 43TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        OLYMPIC FUNDING TRUST SERIES 1999-1

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 27 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        KZH RIVERSIDE LLC

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 28 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        FIFTH THIRD BANK (NORTHEASTERN OHIO)

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 29 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        BANK ONE, N.A.

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 30 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        MUIRFIELD TRADING LLC

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 31 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        FIRST DOMINION FUNDING I

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 32 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        KATONAH I, LTD.

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 33 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        AMARA 2 FINANCE LTD
                                        By: INVESCO Senior Secured Management,
                                            Inc. as Financial Manager

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>

        [SIGNATURE PAGE 34 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        AERIES FINANCE-II LTD.
                                        By: INVESCO Senior Secured Management,
                                            Inc. as Sub-Managing Agent

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 35 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        AVALON CAPITAL LTD. 2
                                        By: INVESCO Senior Secured Management,
                                            Inc. as Portfolio Advisor

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 36 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                     CERES II FINANCE LTD.
                                     By: INVESCO Senior Secured Management, Inc.
                                         as Sub-Managing Agent (Financial)

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

<PAGE>
        [SIGNATURE PAGE 37 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        Endurance CLO I, Ltd
                                        By: ING Capital Advisors LLC, as
                                            Portfolio Manager

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 38 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        KZH ING-2 LLC

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 39 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        CENTURION CDO II, LTD.
                                        By: American Express Asset Management
                                            Group Inc.

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 40 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        WILBRAHAM CBO LTD.
                                        By: David L. Babson & Company Inc.,
                                            as Investment Manager

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 41 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        FRANKLIN FLOATING RATE MASTER SERIES

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 42 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        KZH STERLING LLC

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>
        [SIGNATURE PAGE 43 OF 43 TO AMENDMENT NO. 9 TO CREDIT AGREEMENT]

                                        GOLDMAN SACHS CREDIT PARTNERS L.P.

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>

                                 SCHEDULE 1.1(A)

                                  PRICING GRID
<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------------
                            Revolving Credit, Term
                           Loan A AND SUPPLEMENTAL     Revolving Credit, Term
                             TERM LOAN Euro-Rate      Loan A AND SUPPLEMENTAL        Term Loan B        Term Loan B Base
                             Spread and Letter of       TERM LOAN Base Rate       Euro-Rate Spread*     Rate Spread rate*
                                 Credit Fee*                  Spread*
--------------------------------------------------------------------------------------------------------------------------
<S>                              <C>                       <C>                     <C>                   <C>
Current Pay                          5.5%                      4.5%                    6.0%                  5.0%
--------------------------------------------------------------------------------------------------------------------------
Payment in Kind                      4.5%**                    4.5%**                  5.0%**                5.0%**
--------------------------------------------------------------------------------------------------------------------------
Total Applicable Margin to          10.0%                      9.0%                   11.0%                 10.0%
be added to Euro-Rate or
Base Rate
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

       * The default rate in Section 4.3 may increase these interest rates.

       ** If the Leverage Ratio is less than or equal to 2.0 to 1.0, as
calculated in accordance with Section 8.2.16, at the end of any fiscal quarter
of the Borrower beginning with and subsequent to the fiscal quarter ended June
30, 2003, the Payment in Kind margin shall be reduced from 4.5% and 5.0% (as the
case may be) to 2.0%, effective as of the first day of the month following the
due date for the delivery of the Compliance Certificate evidencing such
reduction in the Leverage Ratio on or after such date; provided however, that
such margin shall be restored to 4.5% and 5.0% (as the case may be) if the
Leverage Ratio is greater than 2.0 to 1.0 as calculated at the end of any
subsequent fiscal quarter, such increase to be effective as of the first day of
the month following the due date for the delivery of the Compliance Certificate
evidencing such increase in the Leverage Ratio.
<PAGE>

                                 SCHEDULE 1.1(C)

                   SUPPLEMENTAL TERM LOAN COMMITMENT SCHEDULE

-------------------------------------------------------------------------------

            SUPPLEMENTAL TERM                      SUPPLEMENTAL TERM
               LOAN LENDER                          LOAN COMMITMENT

-------------------------------------------------------------------------------
            NATIONAL CITY BANK                       $ 2,000,000.00
             OF PENNSYLVANIA
-------------------------------------------------------------------------------
      HARRIS TRUST AND SAVINGS BANK                  $ 2,000,000.00
-------------------------------------------------------------------------------
   MASSACHUSETTS MUTUAL LIFE INSURANCE               $ 1,375,000.00
                 COMPANY

-------------------------------------------------------------------------------
             VAN KAMPEN PRIME                        $ 1,000,000.00
            RATE INCOME TRUST
-------------------------------------------------------------------------------
      VAN KAMPEN SENIOR INCOME TRUST                 $ 1,000,000.00
-------------------------------------------------------------------------------
          CHARTER VIEW PORTFOLIO                     $   750,000.00
-------------------------------------------------------------------------------
            AIM FLOATING RATE                        $   250,000.00
                   FUND

-------------------------------------------------------------------------------
 MANUFACTURERS AND TRADERS TRUST COMPANY             $   750,000.00
-------------------------------------------------------------------------------
               LASALLE BANK                          $   875,000.00
           NATIONAL ASSOCIATION                      --------------
-------------------------------------------------------------------------------
             TOTAL                                   $10,000,000.00
                                                     ==============
-------------------------------------------------------------------------------<PAGE>

                                                                    EXHIBIT 10.2

                                 RENT-WAY, INC.

                              EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made as of July 1, 2002, is between Rent-Way, Inc., a
Pennsylvania corporation with its principal offices at One RentWay Place, Erie,
Pennsylvania 16505 (the "Employer" or "Corporation"), and William Short, an
individual residing at 4182 Stone Creek Drive, Erie, Pennsylvania 16506 (the "
Employee").

     WHEREAS, the Employee is currently employed by the Corporation pursuant to
an employment agreement dated December 1, 2000;

     WHEREAS, the Corporation desires to employ and the Employee desires to
accept such employment upon the terms and conditions contained in this
Agreement;

     NOW, THEREFORE, in consideration of the promises and of the covenants
contained in this Agreement, the Corporation and the Employee agree as follows:

     1.   DEFINITIONS. The following definitions apply for purposes of this
Agreement:

          a)   "Board of Directors" or "Board" means the Board of Directors of
 the Corporation.

          b)   "Cause" means a material breach of his obligations under this
Agreement (any breach of Articles 10, 11 or 12 hereof being an example of such a
material breach), gross negligence or willful misconduct in the performance of
his duties to the Corporation, dishonesty to the Corporation, conviction of any
crime which could have the effect of causing the termination or suspension of
any license or permit which the Corporation holds, conviction of any felony,
conviction of a misdemeanor which substantially impairs the Employee's ability
to perform his duties to the Corporation, or excessive absenteeism not related
to disability.

          c)   "Change in Control" means and shall be deemed to have occurred
if: (i) any "person" as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") (other than the
Corporation, any trustee or other fiduciary holding securities under any
employee benefit plan of the Corporation, or any entity owned, directly or
indirectly, by the shareholders of the Corporation in substantially the same
proportions as their ownership of the voting securities of the Corporation), is
or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act, or any successor rule or regulation thereto as in effect from time to
time), directly or indirectly, of securities representing 25% or more of the
combined voting power of the Corporation's then outstanding securities; (ii)
during any period of two consecutive years (not including any period prior to
the date of this Agreement), individuals who at the beginning of such period
constitute the Board of Directors, and any new director (other than a director
designated by a person who has entered into an

<PAGE>

                                      -2-

agreement with the Corporation to effect a transaction described in clause (i),
(iii), or (iv) of this paragraph) whose election by the Board of Directors or
nomination for election by the Corporation's shareholders was approved by a vote
of at least two-thirds of the directors then still in office who either were
directors at the beginning of the two-year period or whose election or
nomination for election was previously approved, cease for any reason to
constitute at least a majority of the Board of Directors; (iii) the
Corporation's shareholders approve a merger or consolidation of the Corporation
with any other corporation, other than a merger or consolidation that would
result in the voting securities of the Corporation outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than 50% of the
combined voting power of voting securities of the Corporation or such surviving
entity outstanding immediately after such merger or consolidation; provided,
however, that a merger or consolidation effected to implement a recapitalization
of the Corporation (or similar transaction) in which no person acquires more
than 25% of the combined voting power of the Corporation's then outstanding
securities shall not constitute a Change in Control; or (iv) the Corporation's
shareholders approve a plan of complete liquidation of the Corporation or an
agreement for the sale or disposition by the Corporation of all or substantially
all of the Corporation's assets. If any of the events enumerated in clause (i)
through (iv) occur, the Corporation's Board of Directors shall determine in good
faith the effective date of the Change in Control resulting therefrom for
purposes of this Agreement.

          d)   "Code" means the Internal Revenue Code of 1986, as amended.

          e)   "Corporation" means Rent-Way, Inc.

          f)   "Disability" means a disability that has existed for a period of
6 consecutive months and because of which the Employee is physically or mentally
unable to substantially perform his regular duties as Senior Vice President,
Operations of the Corporation.

          g)   "Termination In Connection With A Change In Control" means any of
the following events occurring within twenty four (24) months following, or,
directly or indirectly, in connection with, or in anticipation of a Change in
Control:

               (1)  A termination of Employee's employment by the Corporation
                    for any reason other than Cause.

               (2)  A termination of Employee's employment by Employee because
                    any successor to the Corporation's operations or assets
                    (whether acquired by merger, sale, consolidation or
                    otherwise) ("Successor") fails to:

                    (i)  appoint the Employee to a position with the Successor
having the same responsibilities, duties, title, reporting responsibilities
within the business organization, status, role and authority the Employee now
holds with the Corporation;

<PAGE>

                                       -3-

                    (ii) acknowledge and assume, in writing, this Agreement at
the time of the Change in Control; or

                    (iii) acknowledge and assume, in writing, any
indemnification agreement with the Employee or by law provisions regarding
indemnification which are in effect at the time of the Change in Control.

     2.   EMPLOYMENT; DUTIES. Subject to the terms and conditions set forth in
this Agreement, the Corporation hereby agrees to employ the Employee and the
Employee hereby accepts employment as Senior Vice President, Operations of the
Corporation in full charge of the Corporation's field operations, subject to the
provisions of the by-laws of the Corporation in respect of the duties and
responsibilities assigned from time to time by the Chairman of the Board, the
Chief Executive Officer and/or the President, and subject also at all times to
the control of the Board of Directors. The Employee will perform those duties
and discharge those responsibilities as are commensurate with his position, and
as the Chairman of the Board of Directors, the Chief Executive Officer and/or
the President from time to time reasonably direct that are commensurate with his
position. The Employee agrees to perform his duties and discharge his
responsibilities in a faithful manner and to the best of his ability and to use
all reasonable efforts to promote the interests of the Corporation. The Employee
may not accept other gainful employment except with the prior consent of the
Chairman of the Board of Directors or the Chief Executive Officer of the
Corporation. The Employee may be involved in charitable, civic and religious
organizations so long as they do not materially interfere with the performance
of the Employee's duties hereunder. The Employee shall be entitled to make and
manage personal investments, provided such investments and any activities
undertaken in connection therewith do not violate any restrictive covenants in
Sections 10 or 11 of this Agreement.

     3.   COMPENSATION.

          (a)  Base Salary. During the term of the Employee's employment under
this Agreement, the Employee will receive a base salary of Two Hundred Fifty
Thousand Dollars ($250,000) per year, payable in accordance with the
Corporation's normal payroll practices. On an annual basis, the Chairman of the
Board of Directors or the Chief Executive Officer will, in good faith, review
the base salary of the Employee to consider appropriate increases (but not
decreases) therein. If the Employee dies during the period of his employment
under this Agreement, employment for any part of the month of his death will be
considered employment for the entire month.

          (b)  Annual Cash Bonuses. During the term of the Employee's employment
under this Agreement, the Employee will be entitled to receive an annual cash
bonus calculated pursuant to performance standards developed by the
Corporation's compensation committee in consultation with the Employee, as such
standards are in effect from time to time. The target amount of the bonus shall
be 50% of the Employee's base salary as of the end of the fiscal period of the
Corporation for which the bonus is calculated.

<PAGE>

                                      -4-

          (c)  Stock Options. Upon execution of this Agreement and subject to
approval by the Board of Directors, the Corporation will award the Employee a
grant of 75,000 options to acquire shares of the Corporation's common stock
under the Corporation's stock option plans at an exercise price equal to the
closing price of the Corporation's common stock as reported by the New York
Stock Exchange on the date of grant. The agreement evidencing these options will
provide for the vesting of the options as follows: 25,000 options on the date of
this Agreement; 25,000 options on July 1, 2003 and 25,000 options on July 1,
2004.

          (d)  Withholding. The Corporation will deduct or withhold from all
salary and bonus payments, and from all other payments made to the Employee
pursuant to this Agreement, all amounts that are legally required to be deducted
or withheld.

          4.   OTHER BENEFITS AND TERMS. During the term of the Employee's
employment under this Agreement, the Employee will be entitled to the following
other benefits and terms:

          (a)  The Employee will be entitled to participate in the Corporation's
health and medical benefit plans; any pension, profit sharing and retirement
plans; and any insurance policies or programs from time to time generally
offered to all or substantially all executive officers who are employed by the
Corporation. These plans, policies and programs are subject to change at the
sole discretion of the Corporation.

          (b)  The Employee will be entitled to any other fringe benefit from
time to time generally offered to all or substantially all senior executives
employed by the Corporation.

          5.   VACATIONS. The Employee will be entitled to four (4) weeks of
paid vacation each calendar year. Unused vacation in any year may not be carried
over to subsequent years.

          6.   REIMBURSEMENT FOR EXPENSES. The Corporation will reimburse the
Employee for expenses, which the Employee may from time to time reasonably incur
on behalf of the Corporation in the performance of his responsibilities and
duties including, but not limited to, membership dues in trade and business
organizations and attendance at trade and business conferences.

          7.   PERIOD OF EMPLOYMENT. Subject to the provisions of this Section,
the period of employment of the Employee under this agreement will be deemed to
begin on July 1, 2002 and continue until June 30, 2005 (the "Initial Term").
Upon the expiration of the Initial Term, the period of employment will be
automatically extended for additional one year periods thereafter, unless either
party provides 120 days prior written notice to the other that it does not wish
to extend the Employee's employment beyond its then present term.

<PAGE>

                                      -5-

          Notwithstanding the foregoing:

          (a)  The Employee's employment will automatically terminate upon the
death or Disability of the Employee. The foregoing is subject to the duty of the
Corporation to provide reasonable accommodation under the Americans with
Disabilities Act.

          (b)  The Corporation may, at its sole option, terminate the Employee's
employment at any time and for any reason by delivering written notice to the
Employee.

          (c)  The Employee, at his sole option, may terminate his employment by
providing written notice to the Corporation at least 30 days prior to the
effective date of the termination of employment specified in the notice. If the
Employee terminates his employment under this Section 7. (c), he will only be
entitled to receive the compensation and other benefits provided under this
Agreement through the effective date of the termination.

Any notice of termination of employment given by a party must specify the
particular termination provision of this Agreement relied upon by the party and
must set forth in reasonable detail the facts and circumstances that provide a
basis for the termination.

          8.   BENEFITS UPON TERMINATION. The Corporation will provide the
following benefits upon the termination of the Employee's employment with the
Corporation.

          (a)  Upon Termination By The Corporation Other Than For Cause Or
"Termination In Connection With A Change In Control.". Upon the Corporation's
termination of the Employee's employment for other than Cause or a Termination
In Connection With A Change In Control, the Corporation will provide the
following:

               (i) Salary And Fringe Benefits. The Employee will receive his
          salary and Fringe Benefits through the effective date of termination
          of employment. The Employee will also receive (i) his annual base
          salary and (ii) his full fringe benefits, including medical and health
          insurance ("Fringe Benefits"), in effect on the date of notice of
          termination for a period of 24 months beginning with the month next
          following the month during which his employment terminates or the
          balance of the Initial Term, whichever is the longer period. If the
          Employee dies during this period, dependent health or medical Fringe
          Benefits will be provided for the balance of the period.

               (ii) Accrued Vacation. The Employee will receive payment for
          accrued but unused vacation, which payment will be equitably prorated
          based on the period of active employment for that portion of the
          calendar year in which the Employee's termination of employment
          becomes effective.

The cash payments provided for in this subsection (a) may be made in one lump
sum within ten business days, or paid out over the period stated in Section
8(a)(i) at the Corporation's discretion following the effective date of the
Employee's termination of employment.

<PAGE>

                                      -6-

          (b)  Termination of Employment for Cause. The Corporation shall have
the right to terminate the Employee's employment immediately in the event the
Employee shall do or cause to be done any act, which constitutes "cause" (as
defined in Section 1.b. of this Agreement) for termination. Should the
Employee's employment be terminated by the Corporation for cause, the
Corporation's only obligation shall be to pay the Employee his base salary
through the date of termination. Nothing contained in this Article 8 shall in
any way waive, restrict or prejudice the Corporation's rights against the
Employee with respect to the matter for which the Employee's employment under
this Agreement is terminated for cause.

          (c)  Upon Termination For Disability. Upon termination of the
Employee's employment because of Disability, the Corporation will provide the
following:

               (i) Salary And Fringe Benefits. The Employee will receive his
          salary and Fringe Benefits through the effective date of termination
          of employment. The Employee will also receive his annual base salary
          and Fringe Benefits, as in effect on the date immediately before the
          Disability, for a period of 6 months commencing with the month
          following the month during which his employment terminates. If the
          Employee dies during the 6-month period, his salary payments under
          this subsection will continue to be paid to his estate for the balance
          of the 6-month period and any dependent health or medical Fringe
          Benefits will be provided in each case for the balance of the 6-month
          period.

               (ii) Accrued Vacation. The Employee will receive payment for
          accrued but unused vacation, which payment will be equitably prorated
          based on the period of active employment for that portion of the
          calendar year in which the Employee's termination becomes effective.

The vacation payment provided for in this subsection (c) will be made in one
lump sum within ten business days following the effective date of the Employee's
termination of employment because of Disability.

          (d)  Upon Termination For Death. Upon termination of the Employee's
employment because of his death, the Corporation will provide the following:

               (i) Salary And Fringe Benefits. The Employee's salary and Fringe
          Benefits through the effective date of termination of employment. The
          Employee's estate will also receive his annual base salary as in
          effect on the date immediately prior to his date of death, for a
          period of 12 months. Any dependent health or medical Fringe Benefits
          will be provided for the 12-month period following the month in which
          the Employee dies.

               (ii) Accrued Vacation. The Employee's successor as provided in
          Section 12 will receive payment for accrued but unused vacation, which
          payment will be equitably prorated based on the period of active
          employment for that portion of the calendar year in which the Employee
          died.

<PAGE>

                                      -7-

               (iii) STock Options. Notwithstanding any contrary provisions
          contained in any stock option agreement evidencing stock options
          granted to the Employee, as of the effective date of the Employee's
          termination of employment because of Death the Corporation will allow
          the successor 12 months from the date of death to exercise any stock
          option vested in the Employee at the time of death.

The vacation payment provided for in this subsection (d) will be made in one
lump sum within ten business days following the effective date of the Employee's
termination of employment because of death.

          (e)  Reduction In Fringe Benefits. Medical and health Fringe Benefits
under this Section will be reduced to the extent of any medical and health
fringe benefits provided by and available to the Employee from any subsequent
employer.

          (f)  Determination Of Disability. Any questions as to the existence of
a physical or mental condition which would give rise to the Disability of the
Employee upon which the Employee and the Corporation cannot agree will be
determined by a qualified independent physician selected by the Corporation and
reasonably acceptable to the Employee (or, if the Employee is incapacitated and
unable to make a selection, the determination of acceptability of the physician
will be made by any adult member of his immediate family). The physician's
written determination to the Corporation and to the Employee will be final and
conclusive for all purposes of this Agreement.

          (g)  Continuation of Healthcare Coverage. For purposes of COBRA
continuation healthcare coverage, the "qualifying event" will be deemed to have
occurred at the end of the period during which health and medical benefits are
provided under this Section 8.

          (h)  Indemnity. For a 12-month period following the date of the
Employee's termination of employment, the Corporation will continue any
indemnification agreement with the Employee and any directors' and officers'
liability insurance insuring the Employee at the date of such termination. At
the Employee's request, the Corporation will cause a certificate of insurance,
in a form satisfactory to the Employee, verifying this coverage to be provided
to the Employee on an annual basis.

          9.   NON-EXCLUSIVITY OF RIGHTS. Except as otherwise specifically
provided, nothing in this Agreement will prevent or limit the Employee's
continued or future participation in any benefit, incentive, or other plan,
practice, or program provided by the Corporation and for which the Employee may
qualify. Any amount of vested benefit or any amount to which the Employee is
otherwise entitled under any plan, practice, or program of the Corporation will
be payable in accordance with the plan, practice, or program, except as
specifically modified by this Agreement.

          10.  CONFIDENTIALITY. During the course of his employment, the
Employee will have access to confidential information relating to the lines of
business of the Corporation, its trade secrets, marketing techniques, technical
and cost data, information concerning customers and

<PAGE>

                                      -8-

suppliers, information relating to product lines, and other valuable and
confidential information relating to the business operations of the Corporation
not generally available to the public (the "Confidential Information"). The
parties hereby acknowledge that any unauthorized disclosure or misuse of the
Confidential Information could cause irreparable damage to the Corporation. The
parties also agree that covenants by the Employee not to make unauthorized use
or disclosures of the Confidential Information are essential to the growth and
stability of the business of the Corporation. Accordingly, the Employee agrees
to the confidentiality covenants set forth in this Section.

     The Employee agrees that, except as required by his duties with the
Corporation as he reasonably determines or as authorized by the Corporation in
writing, he will not use or disclose to anyone at any time, regardless of
whether before or after the Employee ceases to be employed by the Corporation,
any of the Confidential Information obtained by him in the course of his
employment with the Corporation. The Employee shall not be deemed to have
violated this Section 10 by disclosure of Confidential Information that at the
time of disclosure (a) is publicly available or becomes publicly available
through no act or omission of the Employee, or (b) is disclosed as required by
court order or as otherwise required by law, on the condition that notice of the
requirement for such disclosure is given to the Corporation prior to making any
disclosure.

     The Employee agrees that since irreparable damage could result from his
breach of the covenants in this Section, in addition to any and all other
remedies available to the Corporation, the Corporation will have the remedies of
a restraining order, injunction or other equitable relief to enforce the
provisions thereof. The Employee consents to jurisdiction in Erie County,
Pennsylvania, on the date of the commencement of any action for purposes of any
claims under this Section. In addition, the Employee agrees that the issues in
any action brought under this Section will be limited to claims under this
Section, and all other claims or counterclaims under other provisions of this
Agreement will be excluded.

     11.  NON-COMPETITION. In consideration of the compensation and other
benefits to be paid to the Employee under and in connection with this Agreement,
the Employee agrees that, beginning on the date of this Agreement and continuing
until the Covenant Expiration Date (as defined in subsection (b) below), he will
not, directly or indirectly, for his own account or as agent, employee, officer,
director, trustee, consultant, partner, stockholder or equity owner of any
corporation or any other entity (except that he may passively own securities
constituting less than 1% of any class of securities of a public company), or
member of any firm or otherwise, (i) engage or attempt to engage, in the
Restricted Territory (as defined in subsection (d) below), in any business
activity which is directly or indirectly competitive with the business conducted
by the Corporation or any Affiliate at the Reference Date (as defined in
subsection (c) below), (ii) employ or solicit the employment of any person who
is employed by the Corporation or any Affiliate at the Reference Date or at any
time during the twelve-month period preceding the Reference Date, except that
the Employee will be free to employ or solicit the employment of any such person
whose employment with the Corporation or any Affiliate has terminated for any
reason (without any interference from the Employee) and who has not been
employed by the Corporation or any Affiliate for at least twelve months, (iii)
canvass or solicit business in

<PAGE>

                                       -9-

competition with any business conducted by the Corporation or any Affiliate at
the Reference Date from any person or entity who during the twelve-month period
preceding the Reference Date was a customer of the Corporation or any Affiliate
or from any person or entity which the Employee has reason to believe might in
the future become a customer of the Corporation or any Affiliate as a result of
marketing efforts, contacts or other facts and circumstances of which the
Employee is aware, (iv) willfully dissuade or discourage any person or entity
from using, employing or conducting business with the Corporation or any
Affiliate or (v) intentionally disrupt or interfere with, or seek to disrupt or
interfere with, the business or contractual relationship between the Corporation
or any Affiliate and any supplier who during the twelve-month period preceding
the Reference Date shall have supplied products, materials or services to the
Corporation or any Affiliate.

     Notwithstanding the foregoing, the restrictions imposed by this Section
shall not in any manner be construed to prohibit, directly or indirectly, the
Employee from serving as an employee or consultant of the Corporation or any
Affiliate.

     For purposes of this Agreement, the following terms have the meanings given
to them below:

     (a)  "Affiliate" means any joint venture, partnership or subsidiary now or
hereafter directly or indirectly owned or controlled by the Corporation. For
purposes of clarification, an entity shall not be deemed to be indirectly or
directly owned or controlled by the Corporation solely by reason of the
ownership or control of such entity by shareholders of the Corporation.

     (b)  "Covenant Expiration Date" means the date, which is 365 days after the
Termination Date.

     (c)  "Reference Date" means (A) for purposes of applying the covenants set
forth in this Section at any time prior to the Termination Date, the then
current date, or (B) for purposes of applying the covenants set forth in this
Section at any time on or after the Termination Date, the Termination Date.

     (d)  "Restricted Territory" means the 50 states of the United States of
America and wherever the Corporation has planned or is operating stores at the
Termination Date.

     (e)  "Termination Date" means the date of termination of the Employee's
employment with the Corporation; provided however that the Employee's employment
will not be deemed to have terminated so long as the Employee continues to be
employed or engaged as an employee or consultant of the Corporation or any
Affiliate, even if such employment or engagement continues after the expiration
of the term of this Agreement.

     12.  SUCCESSORS. This Agreement is personal to the Employee and may not be
assigned by the Employee other than by will or the laws of descent and
distribution. This Agreement will inure to the benefit of and be enforceable by
the Employee's legal

<PAGE>

                                      -10-

representatives or successors in interest. Notwithstanding any other provision
of this Agreement, the Employee may designate a successor or successors in
interest to receive any amounts due under this Agreement after the Employee's
death. If he has not designated a successor in interest, payment of benefits
under this Agreement will be made to his estate. A designation of a successor in
interest must be made in writing, signed by the Employee, and delivered to the
Employer pursuant to Section 15. Except as otherwise provided in this Agreement,
if the Employee has not designated a successor in interest, payment of benefits
under this Agreement will be made to the Employee's estate. This Section will
not supersede any designation of beneficiary or successor in interest made by
the Employee or provided for under any other plan, practice, or program of the
Employer.

     The Agreement will inure to the benefit of and be binding upon the
Corporation and its successors and assigns.

     The Corporation will require any successor (whether direct or indirect by
acquisition of assets, merger, consolidation or otherwise) to all or
substantially all of the operations or assets of the Corporation or any
successor and without regard to the form of transaction used to acquire the
operations or assets of the Corporation, to assume and agree to perform this
Agreement in the same manner and to the same extent that the Corporation would
be required to perform it if no succession had taken place. As used in this
Agreement, "Corporation" means the Corporation and any successor to its
operations or assets as set forth in this Section that is required by this
clause to assume and agree to perform this Agreement or that otherwise assumes
and agrees to perform this Agreement.

     13.  FAILURE, DELAY OR WAIVER. No course of action or failure to act by the
Corporation or the Employee will constitute a waiver by the party of any right
or remedy under this Agreement, and no waiver by either party of any right or
remedy under this Agreement will be effective unless made in writing.

     14.  SEVERABILITY. Whenever possible, each provision of this Agreement will
be interpreted in such a manner as to be enforceable under applicable law.
However, if any provision of this Agreement is deemed unenforceable under
applicable law by a court having jurisdiction, the provision will be
unenforceable only to the extent necessary to make it enforceable without
invalidating the remainder thereof or any of the remaining provisions of this
Agreement.

     15.  NOTICE. All written communications to parties required hereunder must
be in writing and (a) delivered in person, (b) mailed by registered or certified
mail, return receipt requested, (such mailed notice to be effective 4 days after
the date it is mailed) or (c) sent by facsimile transmission, with confirmation
sent by way of one of the above methods, to the party at the address given below
for the party (or to any other address as the party designates in a writing
complying with this Section, delivered to the other party):

<PAGE>
                                      -11-

     If to the Corporation:

            Rent-Way, Inc.
            One RentWay Place
            Erie, Pennsylvania 16505
            Attention:  Chief Executive Officer
            Telephone: (814) 455-5378
            Telecopier: (814) 455-5379

     If to the Employee:

            William  Short
            4182 Stone Creek Drive
            Erie, Pennsylvania 16506
            (814) 838-1753

     16.  ARBITRATION OF DISPUTES. Except for an alleged violation of Section 10
or 11 of this Agreement, the Employee and the Corporation waive any right to a
court (including jury) proceeding and instead agree to submit any dispute over
the Employee's employment with the Corporation or the application,
interpretation, validity or any other aspect of this Agreement to final and
binding arbitration consistent with the application of the Federal Arbitration
Act and the procedural rules of the American Arbitration Association ("AAA")
before an arbitrator who is a member of the National Academy of Arbitrators
("NAA") out of an NAA panel of 11 arbitrators to be supplied by the AAA. Only
true neutrals will be eligible for consideration as arbitrators and under no
circumstances will AAA furnish the names of individuals who represent employees,
unions or companies.

     17.  MISCELLANEOUS. This Agreement (a) may not be amended, modified or
terminated orally or by any course of conduct pursued by the Corporation or the
Employee, but may be amended, modified or terminated only by a written agreement
duly executed by the Corporation and the Employee, (b) is binding upon and
inures to the benefit of the Corporation and the Employee and each of their
respective heirs, representatives, successors and assignees, except that the
Employee may not assign any of his rights or obligations pursuant to this
Agreement, (c) except as provided in Sections 4 and 9 of this Agreement,
constitutes the entire agreement between the Corporation and the Employee with
respect to the subject matter of this Agreement, and supersedes all oral and
written proposals, representations, understandings and agreements previously
made or existing with respect to such subject matter, including, but not limited
to, the prior employment agreement between the parties dated December 1, 2000,
and (d) will be governed by, and interpreted and construed in accordance with,
the laws of the Commonwealth of Pennsylvania, without regard to principles of
conflicts of law.

     18.  MULTIPLE COUNTERPARTS. This Agreement may be executed in one or more
counter parts, each of which shall be deemed an original, but all of which
together shall

<PAGE>

                                      -12-

constitute one and the same instrument. Any party may execute this Agreement by
facsimile signature and the other party shall be entitled to rely on such
facsimile signature as evidence that this Agreement has been duly executed by
such party. Any party executing this Agreement by facsimile signature shall
immediately forward to the other party an original page by overnight mail.

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

                                       RENT-WAY, INC.

                                       By:  /s/ William E. Morgenstern
                                           -------------------------------
                                                William E. Morgenstern
                                                Chairman of the
                                                Board of Directors & CEO

                                        EMPLOYEE:

                                       By:  /s/ William  Short
                                           -------------------------------
                                                William  Short

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