Document:

exv10w26

Exhibit 10.26

	 	 	 	 	 
	 	 	 
	February 26, 2010 
	 	 	 
	 	 	 
	 

Transcat, Inc.

35 Vantage Point Drive

Rochester, New York 14624

Attention: John J. Zimmer, Vice President, Finance & CFO

Ladies and Gentlemen:

Reference is made to the Credit Agreement dated as of November 21, 2006 between Transcat, Inc. (the
“Borrower”) and JPMorgan Chase Bank, N.A. (the “Lender”), as amended as of August 14, 2008 by
Amendment Number One to Credit Agreement (collectively, the “Credit Agreement”). Terms used but
not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement.

The Borrower has requested, and the Lender has agreed, subject to the terms and conditions hereof,
to modify the provisions of the Credit Agreement with respect to Permitted Acquisitions and to
amend the Credit Agreement as follows:

	 	1.	 	The following definition is hereby added to Section 1.01 of the Credit Agreement in the
appropriate alphabetical order:

	 	 	 	“Amendment No. 2” means that certain letter amendment
between Borrower and Lender dated February 26, 2010.

	 	2.	 	The definition of “Permitted Acquisition” as set forth in Section 1.01 of the
Credit Agreement shall be amended so that subsection (e) thereof is hereby deleted in its entirety
and replaced with the following:

	 	(e)	 	The cash consideration paid for all Acquisitions made after
the date of Amendment No. 2 shall not exceed $6,000,000.

The foregoing amendments are subject to and conditioned upon the following:

	 	(a)	 	The Lender shall have received an executed original counterpart signature of the Borrower to
this letter amendment.

	 	(b)	 	All of the Borrower’s representations and warranties as set forth below shall be true, correct
and complete as of the effective date of this letter amendment.

 

 

By signing below, the Borrower represents and warrants to the Lender that: (i) the covenants,
representations and warranties set forth in the Credit Agreement are true and correct on and as of
the date of execution hereof as if made on and as of said date; (ii) no Event of Default specified
in the Credit Agreement and no event, which, with the giving of notice or lapse of time or both,
would become such an Event of Default has occurred and is continuing; (iii) since the date of the
Credit Agreement, there has been no material adverse change in the financial condition or business
operations of the Borrower which has not been disclosed to the Lender: (iv) the making and
performance by the Borrower of this letter amendment have been duly authorized by all necessary
corporate action and the person signing below on behalf of the Borrower is duly authorized to act
in such capacity; and (v) the security interest granted by the Borrower to the Lender pursuant to
the Security Agreement constitutes a valid, binding and enforceable, first in priority lien on all
Collateral subject to such Security Agreement.

In consideration of the execution of this letter amendment by the Lender, the Borrower agrees to
pay on demand all costs and expenses of the Lender in connection with the preparation, execution
and delivery of this letter amendment and the other documents related hereto, including the fees
and out-of-pocket expenses of counsel for the Lender.

Except as specifically modified herein, the terms, conditions and covenants of the Credit Agreement
shall remain in full force and effect.

This letter amendment may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument, and any parties hereto may execute this letter
amendment by signing any such counterpart.

	 	 	 	 	 
	 	Very truly yours,

JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ Thomas C. Strasenburgh
 	 
	 	 	Thomas C. Strasenburgh, 

Vice President 	 
	 	 	 	 
	 

	 	 	 	 	 
	ACCEPTED and AGREED to this

26th day of February, 2010.

TRANSCAT, INC.

 	 
	 

	 	 	 	 	 
	By:  	/s/ John J. Zimmer
 	 
	  	Name: 	John J. Zimmer 	 
	  	Title: 	VP Finance & CFOExhibit 10.1

Exhibit 10.1

Execution Version

SECOND AMENDED AND RESTATED LOAN FACILITY AGREEMENT

AND GUARANTY

by and among

AARON’S, INC.,

SUNTRUST BANK, as Servicer

and

EACH OF THE PARTICIPANTS PARTY HERETO

Dated as of June 18, 2010

 

 

 

Table of Contents

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Accounting Terms and Determination
	 	 	24	 
	Section 1.3. Other Definitional Terms
	 	 	24	 
	Section 1.4. Exhibits and Schedules
	 	 	24	 
	 
	 	 	 	 
	ARTICLE II LOAN FACILITY
	 	 	24	 
	 
	 	 	 	 
	Section 2.1. Establishment of Facility Commitment; Terms of Loans
	 	 	24	 
	Section 2.2. Conveyance of Participant’s Interest
	 	 	28	 
	Section 2.3. Funding of Advances; Swing Line; Funding of Participant’s Interest in Loans
	 	 	29	 
	Section 2.4. Participant Commitment Fees
	 	 	30	 
	Section 2.5. Interest on Funded Participations
	 	 	31	 
	Section 2.6. Default Interest
	 	 	32	 
	Section 2.7. Voluntary Reduction of the Unutilized Commitment
	 	 	32	 
	Section 2.8. Extension of Commitments
	 	 	33	 
	Section 2.9. Wind-Down Events
	 	 	34	 
	Section 2.10. Reserve Requirements; Change in Circumstances; Change in Lending Offices
	 	 	34	 
	Section 2.11. Pro Rata Treatment
	 	 	35	 
	Section 2.12. Payments
	 	 	35	 
	Section 2.13. Sharing of Setoffs
	 	 	36	 
	Section 2.14. Canadian Dollar Provisions
	 	 	36	 
	Section 2.15. Excess Loan Commitments Resulting From Exchange Rate Changes
	 	 	38	 
	Section 2.16. Interest Act
	 	 	38	 
	Section 2.17. Reallocation and Cash Collateralization of Defaulting Participant Exposure
	 	 	38	 
	 
	 	 	 	 
	ARTICLE III SERVICER’S SERVICING OBLIGATIONS; DISTRIBUTION OF PAYMENTS
	 	 	39	 
	 
	 	 	 	 
	Section 3.1. Servicer’s Obligations with Respect to Loans; Collateral; Non-Recourse
	 	 	39	 
	Section 3.2. Application of Payments
	 	 	40	 
	Section 3.3. Monthly Servicing Report
	 	 	42	 
	 
	 	 	 	 
	ARTICLE IV LOAN DEFAULT; RIGHT TO MAKE GUARANTY DEMAND
	 	 	42	 
	 
	 	 	 	 
	Section 4.1. Notice Of Loan Default
	 	 	42	 
	Section 4.2. Waiver or Cure By The Sponsor of Covenant Defaults and Loan Payment Defaults
	 	 	42	 
	Section 4.3. [Reserved]
	 	 	43	 
	Section 4.4. Rights during Response Period
	 	 	43	 
	Section 4.5. Rights after Response Period and for Loan Defaults other than Loan Payment Defaults
	 	 	43	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	 	 	43	 
	 
	 	 	 	 
	Section 5.1. Existence; Power
	 	 	43	 
	Section 5.2. Organizational Power; Authorization
	 	 	43	 
	Section 5.3. Governmental Approvals; No Conflicts
	 	 	44	 
	Section 5.4. Financial Statements
	 	 	44	 
	Section 5.5. Litigation and Environmental Matters
	 	 	44	 
	Section 5.6. Compliance with Laws and Agreements
	 	 	45	 
	Section 5.7. Investment Company Act, Etc.
	 	 	45	 
	Section 5.8. Taxes
	 	 	45	 
	Section 5.9. [Reserved]
	 	 	45	 

 

(i)

 

	 	 	 	 	 
	Section 5.10. ERISA
	 	 	45	 
	Section 5.11. Ownership of Property
	 	 	45	 
	Section 5.12. Disclosure
	 	 	46	 
	Section 5.13. Labor Relations
	 	 	46	 
	Section 5.14. Subsidiaries
	 	 	46	 
	Section 5.15. Representations and Warranties with Respect to Specific Loans
	 	 	46	 
	Section 5.16. OFAC
	 	 	47	 
	Section 5.17. Patriot Act
	 	 	47	 
	 
	 	 	 	 
	ARTICLE VI AFFIRMATIVE COVENANTS
	 	 	47	 
	 
	 	 	 	 
	Section 6.1. Financial Statements and Other Information
	 	 	48	 
	Section 6.2. Notices of Material Events
	 	 	49	 
	Section 6.3. Existence; Conduct of Business
	 	 	49	 
	Section 6.4. Compliance with Laws, Etc.
	 	 	50	 
	Section 6.5. Payment of Obligations
	 	 	50	 
	Section 6.6. Books and Records
	 	 	50	 
	Section 6.7. Visitation, Inspection, Etc.
	 	 	50	 
	Section 6.8. Maintenance of Properties; Insurance
	 	 	50	 
	Section 6.9. [Reserved]
	 	 	51	 
	Section 6.10.  Additional Subsidiaries
	 	 	51	 
	 
	 	 	 	 
	ARTICLE VII FINANCIAL COVENANTS
	 	 	51	 
	 
	 	 	 	 
	Section 7.1. Total Debt to EBITDA Ratio
	 	 	51	 
	Section 7.2. Total Adjusted Debt to Total Adjusted Capital Ratio
	 	 	51	 
	Section 7.3. Fixed Charge Coverage Ratio
	 	 	52	 
	Section 7.4. Minimum Consolidated Net Worth
	 	 	52	 
	 
	 	 	 	 
	ARTICLE VIII NEGATIVE COVENANTS
	 	 	52	 
	 
	 	 	 	 
	Section 8.1. Indebtedness
	 	 	52	 
	Section 8.2. Negative Pledge
	 	 	53	 
	Section 8.3. Fundamental Changes
	 	 	54	 
	Section 8.4. Investments, Loans, Etc.
	 	 	55	 
	Section 8.5. Restricted Payments
	 	 	56	 
	Section 8.6. Sale of Assets
	 	 	56	 
	Section 8.7. Transactions with Affiliates
	 	 	56	 
	Section 8.8. Restrictive Agreements
	 	 	56	 
	Section 8.9. Sale and Leaseback Transactions
	 	 	57	 
	Section 8.10. Amendment to Material Documents
	 	 	57	 
	Section 8.11. Accounting Changes
	 	 	57	 
	Section 8.12. Activities of Aaron Rents Puerto Rico
	 	 	57	 
	 
	 	 	 	 
	ARTICLE IX CREDIT EVENTS AND REMEDIES
	 	 	57	 
	 
	 	 	 	 
	ARTICLE X GUARANTY
	 	 	60	 
	 
	 	 	 	 
	Section 10.1. Unconditional Guaranty
	 	 	60	 
	Section 10.2. [Reserved]
	 	 	61	 
	Section 10.3. Continuing Guaranty
	 	 	61	 
	Section 10.4. Waivers
	 	 	61	 
	Section 10.5. Additional Actions
	 	 	61	 
	Section 10.6. Additional Waivers
	 	 	61	 
	Section 10.7. Postponement of Obligations
	 	 	62	 
	Section 10.8.
 Effect on Additional Guaranties
	 	 	62	 

 

(ii)

 

	 	 	 	 	 
	Section 10.9. Reliance on Guaranty and Purchase Obligation; Disclaimer of Liability
	 	 	62	 
	Section 10.10. Reinstatement of Obligations
	 	 	63	 
	Section 10.11.
 Right to Bring Separate Action
	 	 	63	 
	Section 10.12.
Subordination of Liens
	 	 	63	 
	Section 10.13. Exercise of Remedies With Respect to Collateral
	 	 	64	 
	Section 10.14. Rights Of Sponsor Upon Payment; Cooperation By Servicer
	 	 	65	 
	 
	 	 	 	 
	ARTICLE XI INDEMNIFICATION
	 	 	65	 
	 
	 	 	 	 
	Section 11.1. Indemnification
	 	 	65	 
	Section 11.2. Notice Of Proceedings; Right To Defend
	 	 	66	 
	Section 11.3. Third Party Beneficiaries
	 	 	67	 
	 
	 	 	 	 
	ARTICLE XII SURVIVAL OF LOAN FACILITY
	 	 	67	 
	 
	 	 	 	 
	ARTICLE XIII CONDITIONS PRECEDENT
	 	 	68	 
	 
	 	 	 	 
	Section 13.1. Receipt of Documents
	 	 	68	 
	Section 13.2.  Effect of Amendment and Restatement
	 	 	69	 
	 
	 	 	 	 
	ARTICLE XIV THE SERVICER
	 	 	70	 
	 
	 	 	 	 
	Section 14.1. Appointment of Servicer as Agent
	 	 	70	 
	Section 14.2. Nature of Duties of Servicer
	 	 	70	 
	Section 14.3. Lack of Reliance on the Servicer
	 	 	70	 
	Section 14.4. Certain Rights of the Servicer
	 	 	70	 
	Section 14.5. Reliance by Servicer
	 	 	71	 
	Section 14.6. Indemnification of Servicer
	 	 	71	 
	Section 14.7. The Servicer in its Individual Capacity
	 	 	71	 
	Section 14.8. Holders of Participation Certificates
	 	 	71	 
	 
	 	 	 	 
	ARTICLE XV MISCELLANEOUS
	 	 	72	 
	 
	 	 	 	 
	Section 15.1. Notices
	 	 	72	 
	Section 15.2. Amendments, Etc.
	 	 	72	 
	Section 15.3. No Waiver; Remedies Cumulative
	 	 	72	 
	Section 15.4. Payment of Expenses, Etc.
	 	 	73	 
	Section 15.5. Right of Setoff
	 	 	73	 
	Section 15.6. Benefit of Agreement; Assignments; Participations
	 	 	73	 
	Section 15.7. Governing Law; Submission to Jurisdiction
	 	 	75	 
	Section 15.8. Counterparts
	 	 	76	 
	Section 15.9. Severability
	 	 	76	 
	Section 15.10. Independence of Covenants
	 	 	76	 
	Section 15.11. No Joint Venture
	 	 	76	 
	Section 15.12. Repurchase Right
	 	 	76	 
	Section 15.13. Confidentiality
	 	 	76	 
	Section 15.14. Headings Descriptive; Entire Agreement
	 	 	77	 
	Section 15.15. Patriot Act
	 	 	77	 

 

(iii)

 

EXHIBITS

	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of Assignment and Acceptance Agreement
	Exhibit B

	 	—
	 	Form of Canadian Loan Agreement
	Exhibit C

	 	—
	 	Form of US Loan Agreement
	Exhibit D

	 	—
	 	Form of Guaranty Agreement
	Exhibit E

	 	—
	 	Form of Participation Certificate
	Exhibit F

	 	—
	 	Form of Monthly Servicing Report

SCHEDULES

	 	 	 
	Schedule 1.1(a)
— Pricing Grid
	 	 
	Schedule 1.1(b)
 — Participant Commitments
	 	 
	Schedule 5.5(a)
 — Litigation 
	 	 
	Schedule 5.5(b)
 — Environmental Matters
	 	 
	Schedule 5.14
 — Subsidiaries 
	 	 
	Schedule 8.1
— Outstanding Indebtedness

	 	 
	Schedule 8.2
 — Existing Liens
	 	 

	Schedule 8.4
 — Existing Investments 
	 	 

 

(iv)

 

SECOND AMENDED AND RESTATED LOAN FACILITY AGREEMENT AND GUARANTY

THIS SECOND AMENDED AND RESTATED LOAN FACILITY AGREEMENT AND GUARANTY (the “Agreement”) made
as of this 18th day of June, 2010, by and among AARON’S, INC., a Georgia corporation having its
principal place of business and chief executive office at 1100 Aaron Building, 309 East Paces Ferry
Road, N.E., Atlanta, Georgia 30305 (“Sponsor”), SUNTRUST BANK (“SunTrust”) and each of the other
lending institutions listed on the signature pages hereto (SunTrust, such lenders, together with
any assignees thereof becoming “Participants” pursuant to the terms of this Agreement, the
“Participants”) and SUNTRUST BANK, a banking corporation organized and existing under the laws of
Georgia having its principal office in Atlanta, Georgia, as Servicer (in such capacity, the
“Servicer”).

W I
T N E S S E T H:

WHEREAS, the Sponsor, the Participants and the Servicer are parties to that certain Amended
and Restated Loan Facility Agreement dated as of May 23, 2008, as amended or modified prior to the
date hereof (the “Existing Loan Facility Agreement”);

WHEREAS, Sponsor has requested that the Servicer and Participants make certain modifications
to the Existing Loan Facility Agreement, which the Servicer and Participants are willing to do
subject to the terms and conditions hereof;

WHEREAS, Sponsor is willing, subject to the limitations set forth herein, to repurchase such
loans upon the occurrence of certain events, all as more fully set forth below;

NOW, THEREFORE, upon the terms and conditions hereinafter stated, and in consideration of the
mutual premises set forth above and other adequate consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties, intending to be legally bound, hereby agree the Existing
Loan Facility Agreement is amended and restated as follows:

ARTICLE I

DEFINITIONS

Section 1.1.
Definitions. In addition to the other terms defined herein, the
following terms used herein shall have the meanings herein specified (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

“Aaron’s” shall mean the Sponsor.

“Aaron Rents Puerto Rico” shall mean Aaron Rents, Inc. Puerto Rico, a Puerto Rico corporation.

“Aaron’s Proprietary System” shall mean the Sponsor’s proprietary point of sale software
system, as modified from time to time, used by the Sponsor and its franchisees.

“ACH Authorization” means an authorization from a Borrower to automatically debit Loan
payments from a deposit account of such Borrower, substantially in the form attached to the
Servicing Agreement as Exhibit A or such other form as Bank may require from time to time.

 

 

 

“Acquisition” means any transaction in which the Sponsor or any of its Subsidiaries directly
or indirectly (i) acquires any property with which an ongoing business is conducted or is to be
conducted, (ii) acquires all or substantially all of the assets of any Person or division thereof,
whether through a purchase of assets, merger or otherwise, (iii) acquires (in one transaction or as
the most recent transaction in a series of transactions) control of at least a majority of the
voting stock of a corporation, other than the acquisition of voting stock of a wholly-owned
Subsidiary solely in connection with the organization and capitalization of that Subsidiary by the
Sponsor or another Guarantor, or (iv) acquires control of more than 50% ownership interest in any
partnership, joint venture or limited liability company.

“Adjusted Canadian LIBO Rate” shall mean, with respect to each Payment Period, the rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) determined pursuant to the
following formula:

	 	 	 	 
	“Adjusted Canadian LIBO Rate” =

	 	Canadian LIBOR	 
	 

	 	 	 
	 

	 	1.00 - LIBOR Reserve Percentage	 

As used herein, LIBOR Reserve Percentage shall mean, for any Payment Period for any Funded
Participation outstanding hereunder, the reserve percentage (expressed as a decimal) equal to the
then stated maximum rate of all reserve requirements (including, without limitation, any marginal,
emergency, supplemental, special or other reserves) applicable to any member bank of the Federal
Reserve System in respect of Eurocurrency liabilities as defined in Regulation D (or against any
successor category of liabilities as defined in Regulation D).

“Adjusted US LIBO Rate” shall mean, with respect to each Payment Period, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) determined pursuant to the following
formula:

	 	 	 	 
	“Adjusted US LIBO Rate” =

	 	US LIBOR	 
	 

	 	 	 
	 

	 	1.00 - LIBOR Reserve Percentage	 

As used herein, LIBOR Reserve Percentage shall mean, for any Payment Period for any Funded
Participation outstanding hereunder, the reserve percentage (expressed as a decimal) equal to the
then stated maximum rate of all reserve requirements (including, without limitation, any marginal,
emergency, supplemental, special or other reserves) applicable to any member bank of the Federal
Reserve System in respect of Eurocurrency liabilities as defined in Regulation D (or against any
successor category of liabilities as defined in Regulation D).

“Advance” shall mean a funding of a loan to a Borrower by the Servicer pursuant to such
Borrower’s Loan Commitment.

Affiliate” shall mean, as to any Person, any other Person that directly, or indirectly through
one or more intermediaries, Controls, is Controlled by, or is under common Control with, such
Person. For purposes of this definition “Control” shall mean the power, directly or indirectly,
either to (i) vote 10% or more of securities having ordinary voting power for the election of
directors (or persons performing similar functions) of a Person or (ii) direct or cause the
direction of the management and policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. The
terms “Controlling”, “Controlled by”, and “under common Control with” have meanings correlative
thereto.

 

2

 

“Agreement” shall mean this Second Amended and Restated Loan Facility Agreement and Guaranty,
as amended, restated, supplemented or modified from time to time.

“Amortization Period” shall mean (i) with respect to a US Borrower, 18 or 24 months, as
determined from time to time by Aaron’s; provided, however, in the event any US
Line of Credit Commitment is terminated upon 90 days’ notice from the Servicer, all amounts
outstanding under such US Line of Credit Commitment shall be due and payable in full no later than
the 24-month anniversary of such termination, and (ii) with respect to a Canadian Borrower, 24
months; provided, however, in the event any Canadian Line of Credit Commitment is
terminated upon 90 days’ notice from the Servicer, all amounts outstanding under such Canadian Line
of Credit Commitment shall be due and payable in full no later than the 24-month anniversary of
such termination.

“Applicable Margin” shall mean, with respect to all Funded Participation, as of any date, the
percentage per annum determined by reference to the applicable Total Debt to EBITDA Ratio in effect
on such date for Loans as set forth on Schedule 1.1(a) attached hereto; provided, that a
change in the Applicable Margin resulting from a change in the Total Debt to EBITDA Ratio shall be
effective on the second day after which the Sponsor has delivered the financial statements required
by Section 6.1(a) or (b) and the compliance certificate required by Section
6.1(c); provided, further, that if at any time the Sponsor shall have failed to
deliver such financial statement and such certificate when due hereunder, the Applicable Margin
shall be at Level IV until such time as such financial statements and certificates are delivered,
at which time the Applicable Margin shall be determined as provided above. Notwithstanding the
foregoing, the Applicable Margin from the Effective Date until the financial statement and
compliance certificate for the fiscal quarter ending on June 30, 2010 are delivered shall be at
Level I.

“Applicable Percentage” shall mean, with respect to the Participant Commitment Fee, as of any
date, the percentage per annum determined by reference to the applicable Total Debt to EBITDA Ratio
in effect on such date as set forth on Schedule 1.1(a) attached hereto; provided, that a
change in the Applicable Percentage resulting from a change in the Total Debt to EBITDA Ratio shall
be effective on the second day after which the Sponsor has delivered the financial statements
required by Section 6.1(a) or (b) and the compliance certificate required by
Section 6.1(c); provided, further, that if at any time the Sponsor shall
have failed to deliver such financial statement and such certificate when due hereunder, the
Applicable Percentage shall be at Level IV until such time as such financial statements and
certificates are delivered, at which time the Applicable Percentage shall be determined as provided
above. Notwithstanding the foregoing, the Applicable Percentage from the Effective Date until the
financial statement and compliance certificate for the fiscal quarter ending on June 30, 2010 are
delivered shall be at Level I.

“Asset Disposition” shall mean (i) all sales of Merchandise; (ii) all Merchandise which is
determined to have been stolen; (iii) all Merchandise that is destroyed, lost or otherwise removed
from the premises of a Borrower other than pursuant to a Lease Contract or by outright sale or for
repair work; and (iv) all “skipped” Merchandise which is Merchandise subject to a Lease Contract.

“Assignment and Acceptance” shall mean an assignment and acceptance entered into by a
Participant and an Eligible Assignee in accordance with the terms of this Agreement and
substantially in the form of Exhibit A.

 

3

 

“Authorized Signatory” shall mean each officer of Sponsor specified from time to time in an
appropriate certificate to the Servicer as authorized to execute Funding Approval Notices and other
such documents relating to the Loan Documents.

“Bankruptcy Code” shall mean The Bankruptcy Code of 1978, as amended and in effect from time
to time (11 U.S.C. §101 et seq.).

“Borrower” shall mean a US Borrower or a Canadian Borrower, as the case may be.

“Borrower Payment Date” shall mean, with respect to any Loans, the last day of each calendar
month; provided, however, if such day is not a Business Day, the next succeeding
Business Day.

“Borrower Rate” shall mean, (a) with respect to each US Loan, the Prime Rate per annum plus
any additional margin per annum specified for such US Loan by Sponsor in the applicable Funding
Approval Notice, such margin not to exceed ten percent (10.0%) per annum calculated based upon the
actual number of days elapsed in a 360 day year; provided that, at no time may there be more than
five different Borrower Rates for US Lines of Credit, and no more than five different Borrower
Rates for US Revolving Lines of Credit and US Term Loans and (b) with respect to each Canadian
Loan, the Canadian Prime Rate per annum plus any additional margin per annum specified for such
Canadian Loan by Sponsor in the applicable Funding Approval Notice, such margin not to exceed ten
percent (10.0%) per annum calculated based upon the actual number of days elapsed in a 360-day
year; provided that, at no time may there be more than five different Borrower Rates for Canadian
Lines of Credit, and no more than five different Borrower Rates for Canadian Term Loans.

“Business Day” shall mean (i) any day other than a Saturday, Sunday or other day on which
commercial banks in Atlanta, Georgia are authorized or required by law to close, and (ii) if such
day relates to Adjusted US LIBO Rate, any day on which dealings in US Dollars are carried on in the
London interbank market.

“Canadian Borrower” shall mean any Franchisee domiciled in Canada (other than in the Province
of Quebec) that is primarily liable for repayment of a Canadian Loan as a result of having executed
Canadian Loan Documents as maker, or its permitted assignee.

“Canadian Borrower Payment Date” shall mean, with respect to any Canadian Loans, the last day
of each calendar month; provided, however, if such day is not a Canadian Business
Day, the next succeeding Canadian Business Day which is also a Business Day.

“Canadian Business Day” shall mean (i) any day other than a Saturday, Sunday or other day on
which commercial banks in Toronto, Ontario are authorized or required by law to close and (ii) if
such day relates to Adjusted Canadian LIBO Rate, any day on which dealings in Canadian Dollars are
carried on in the London interbank market.

“Canadian Dollars” or “Cdn$” shall mean the lawful currency of Canada.

“Canadian Dollar Equivalent” shall mean, on any date, (i) with respect to any amount
denominated in Canadian Dollars, such amount and (ii) with respect to any amount denominated in US
Dollars, the amount of Canadian Dollars that would be required to purchase the amount of such US
Dollars on such date based upon the Exchange Rate as of the applicable date of determination.

 

4

 

“Canadian Franchisee” shall mean those certain store operators located in Canada (other than
in the Province of Quebec) that own and operate stores under the Aaron’s franchise.

“Canadian Funded Participation” shall mean, for any Participant, the portion of such
Participant’s Funded Participation in Canadian Dollars.

“Canadian LIBOR” shall mean the rate per annum appearing on Reuters Screen LIBOR01 or the
Bloomberg LIBOR page (BBAM), as selected by the Servicer, as the London interbank offered rate for
deposits in Canadian Dollars at approximately 11:00 a.m. (London time) two business days prior to
the first day of such one-month interest period for a one-month period. If for any reason such
rate is not available, Canadian LIBOR shall be, for any such interest period, the rate per annum
reasonably determined by the Servicer as the rate of interest at which Canadian Dollar deposits in
an amount comparable to the aggregate outstanding Funded Participations in US Dollars are offered
to the Servicer by prime banks in the Canadian Dollar market reasonably selected by the Servicer
determined as of 10:00 a.m. (Atlanta, Georgia time) two Business Days prior to the first day of
such Interest Period for a term comparable to such Interest Period.

“Canadian Line of Credit Commitment” shall mean a commitment to make Canadian Line of Credit
Loans to a Canadian Borrower in Canadian Dollars pursuant to a Canadian Loan Agreement.

“Canadian Line of Credit Loans” shall mean Advances made to a Canadian Borrower pursuant to a
Canadian Line of Credit Commitment.

“Canadian Line of Credit Note” shall mean a Canadian Line of Credit Note, executed by a
Canadian Borrower in favor of the Servicer, evidencing such Canadian Borrower’s obligation to repay
all Canadian Line of Credit Loans made to it pursuant to a Canadian Line of Credit Commitment,
substantially in the form of Exhibit A-1 to the Canadian Loan Agreement, with such changes as the
Sponsor and the Servicer shall agree to from time to time.

“Canadian Loan” shall mean either a Canadian Term Loan or a Canadian Line of Credit Loan, as
the case may be.

“Canadian Loan Agreement” shall mean a Loan Agreement setting forth the terms and conditions,
as between a Canadian Borrower and the Servicer, under which the Servicer has established a
Canadian Loan Commitment to make Advances to such Canadian Borrower pursuant to the Canadian Loan
Commitment, substantially in the form of Exhibit B, with such changes as the Sponsor and
the Servicer shall agree to, subject to Section 3.1(b).

“Canadian Loan Commitment” shall mean the commitment by the Servicer to make Advances to any
Canadian Borrower in Canadian Dollars in the amount not exceeding, and upon the terms described in,
the applicable Funding Approval Notice and the applicable Canadian Loan Documents, which Canadian
Loan Commitment may be a Canadian Line of Credit Commitment or a Canadian Term Loan Commitment.

“Canadian Loan Documents” shall mean, with respect to any Canadian Loan, the Canadian Loan
Agreement, the Canadian Master Note, any Personal Guaranty, any Canadian Security Agreement, any
Spousal Consent, the Collateral Agreements, in each case relating to such Loan, any other documents

 

5

 

relating to such Loan delivered by any Borrower or any guarantor or surety thereof to the Servicer
and any amendments thereto (provided that such amendments are made with the consent of Sponsor,
where such consent is required under this Agreement).

“Canadian Master Note” shall mean a Canadian Line of Credit Note or a Canadian Term Note, as
the case may be.

“Canadian Prime Rate” shall mean, on any date of determination, the higher of (a) the
reference rate of interest, expressed as an annual rate, publicly announced or posted from time to
time by Bloomberg on page BTMM for Canadian Money Market rates or (b) the average one month
Bankers’ Acceptance rate quoted on Reuters Service, page CDOR, as at approximately 10:00 a.m.
(Toronto, Ontario time) on such day plus 1% per annum.

“Canadian Security Agreement” shall mean any security agreement executed by a Canadian
Borrower substantially in the form required by the Servicing Agreement.

“Canadian Subfacility Amount” shall mean Cdn $25,000,000, as such amount may be reduced
pursuant to Section 2.7, Section 2.9 or Article IX.

“Canadian Term Loan Commitment” shall mean a commitment to make Canadian Term Loans to a
Canadian Borrower pursuant to a Canadian Loan Agreement.

“Canadian Term Loans” shall mean Advances made to a Canadian Borrower pursuant to a Canadian
Term Loan Commitment.

“Canadian Term Note” shall mean that certain Term Note, executed by a Canadian Borrower in
favor of the Servicer, evidencing such Canadian Borrower’s obligation to repay all Canadian Term
Loans made to it pursuant to a Canadian Term Loan Commitment, substantially in the form of Exhibit
A-2 to the Canadian Loan Agreement, with such changes as the Sponsor and the Servicer shall agree
to from time to time.

“Capital Lease Obligations” of any Person shall mean all obligations of such Person to pay
rent or other amounts under any lease (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

“Cash Collateralize” shall mean, in respect of any obligations, to provide and pledge (as a
first priority perfected security interest) cash collateral for such obligations in US Dollars or
Canadian Dollars, as applicable, with the Servicer pursuant to documentation in form and substance,
reasonably satisfactory to the Servicer (and “Cash Collateralization” has a corresponding
meaning).

“Change in Control” shall mean the occurrence of one or more of the following events: (a) any
sale, lease, exchange or other transfer (in a single transaction or a series of related
transactions) of all or substantially all of the assets of the Sponsor to any Person or “group“
(within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission
thereunder in effect on the date hereof), (b) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or “group” (within the meaning of the
Securities Exchange Act of 1934 and the

 

6

 

rules of the Securities and Exchange Commission thereunder
as in effect on the date hereof) other than the Loudermilk Family of 331/3% or more of
the total voting power of shares of stock entitled to vote in the election of directors of the
Sponsor; or (c) occupation of a majority of the seats (other than vacant seats) on the board of
directors of the Sponsor by Persons who were neither (i) nominated by the current board of
directors or (ii) appointed by directors so nominated.

“Closing Date” shall mean, for any Loan, the date upon which all Loan Documents have been
executed and delivered and the conditions precedent to funding such Loan have been satisfied.

“Code” shall mean the Internal Revenue Code of 1986, as amended and in effect from time to
time.

“Collateral” shall mean, with respect to any Loan, all property of the Borrower and all
guarantors obligated with respect to such Loan that secures such Loan, which property shall be
designated by the Sponsor and may include all accounts receivable, inventory, Lease Contracts and
other business assets of such Borrower and guarantors.

“Collateral Agreement” shall mean an agreement executed by a Borrower and any other Persons
primarily or secondarily liable for all or part of the Loan or granting a security interest or
other Lien to the Servicer in specified Collateral as security for such Loan, including without
limitation, any Loan Agreements, any Canadian Security Agreement and any Personal Guaranties.

“Consolidated Companies” shall mean, collectively, Sponsor and all of its Subsidiaries.

“Consolidated EBITDA” shall mean, for the Sponsor and its Subsidiaries for any period, an
amount equal to the sum of (a) Consolidated Net Income for such period plus (b) to the extent
deducted in determining Consolidated Net Income for such period, (i) Consolidated Interest Expense,
(ii) income tax expense, (iii) depreciation (excluding depreciation of rental merchandise) and
amortization and (iv) all other non-cash charges, determined on a consolidated basis in accordance
with GAAP in each case for such period.

“Consolidated EBITDAR” shall mean, for the Sponsor and its Subsidiaries for any period, an
amount equal to the sum of (a) Consolidated EBITDA and (b) Consolidated Lease Expense.

“Consolidated Fixed Charges” shall mean, for the Sponsor and its Subsidiaries for any period,
the sum (without duplication) of (a) Consolidated Interest Expense paid or payable for such period
and (b) Consolidated Lease Expense paid or payable for such period.

“Consolidated Interest Expense” shall mean, for the Sponsor and its Subsidiaries for any
period determined on a consolidated basis in accordance with GAAP, total cash interest expense,
including without limitation the interest component of any payments in respect of Capital Leases
Obligations capitalized or expensed during such period (whether or not actually paid during such
period).

“Consolidated Lease Expense” shall mean, for any period, the aggregate amount of fixed and
contingent rentals payable by the Sponsor and its Subsidiaries with respect to leases of real and
personal property (excluding Capital Lease Obligations) determined on a consolidated basis in
accordance with GAAP for such period.

 

7

 

“Consolidated Net Income” shall mean, for any period, the net income (or loss) of the Sponsor
and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP,
but excluding therefrom (to the extent otherwise included therein) (i) any extraordinary gains or
losses, (ii) any gains attributable to write-ups of assets and (iii) any equity interest of the
Sponsor or any Subsidiary of the Sponsor in the unremitted earnings of any Person that is not a
Subsidiary and (iv) any income (or loss) of any Person accrued prior to the date it becomes a
Subsidiary or is merged into or consolidated with the Sponsor or any Subsidiary on the date that
such Person’s assets are acquired by the sponsor or any Subsidiary.

“Consolidated Net Worth” shall mean, as of any date of determination, the Sponsor’s total
shareholders’ equity, determined on a consolidated basis in accordance with GAAP.

“Consolidated Total Adjusted Capital” shall mean, as of any date of determination with respect
to the Sponsor, the sum of (i) Consolidated Total Adjusted Debt as of such date and (ii)
Consolidated Net Worth as of such date.

“Consolidated Total Adjusted Debt” shall mean, as of any date of determination, (i)
Consolidated Total Debt, plus (ii) to the extent not included in clause (i), all operating lease
obligations of Sponsor and its Subsidiaries measured at the present value of such obligations
(using a 10% discount rate).

“Consolidated Total Debt” shall mean, at any time, all then currently outstanding obligations,
liabilities and indebtedness of the Sponsor and its subsidiaries on a consolidated basis of the
types described in the definition of Indebtedness.

“Credit Event” shall have the meaning set forth in Article IX of this Agreement.

“Credit Parties” shall mean, collectively, each of the Sponsor and the Guarantors.

“Default Waiver Letter” shall mean a waiver letter sent by Sponsor to the Servicer which such
waiver letter shall (i) waive and cure a Loan Payment Default or (ii) waive a covenant default with
respect to a Loan that does not constitute a Loan Default, such waiver letter to be substantially
in the form required in the Servicing Agreement.

“Defaulted Borrower” shall mean a Borrower under a Defaulted Loan.

“Defaulted Loan” shall mean a Loan evidenced by Loan Documents under the terms of which exist
one or more Loan Defaults that have not been cured or waived as permitted herein.

“Defaulting Participant” shall mean, at any time, any Participant as to which the Servicer has
notified the Sponsor that (i) such Participant has failed for three or more Business Days to comply
with its obligations under this Agreement to fund any Participant Funding (a “funding
obligation”) unless such obligation is being disputed by such Participant in good faith, (ii)
such Participant has notified the Servicer, or has stated publicly, that it will not comply with
any such funding obligation hereunder, or has defaulted on, its obligation to fund generally under
any other loan agreement, credit agreement or other financing agreement, (iii) such Participant
has, for three or more Business Days, failed to confirm in writing to the Servicer, in response to a written request of the Servicer, that it will comply
with its funding obligations hereunder, or (iv) a Participant Insolvency Event has occurred and is
continuing with respect

 

8

 

to such Participant. The Servicer will promptly send to all parties hereto
a copy of any notice to the Sponsor provided for in this definition.

“Domestic Subsidiary” means any Subsidiary of the Sponsor that is incorporated or organized
under the laws of any State of the United States, the District of Columbia or Puerto Rico.

“Effective Date” shall mean the date upon which all conditions precedent to the effectiveness
of this Agreement have been satisfied.

“Eligible Assignee” shall mean (i) a commercial bank organized under the laws of the United
States or any state thereof having total assets in excess of $1,000,000,000.00 or any commercial
finance or asset-based lending Affiliate of any such commercial bank and (ii) any Participant.

“Environmental Laws” shall mean all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by or with any Governmental Authority, relating in any way to the environment, preservation or
reclamation of natural resources, the management, Release or threatened Release of any Hazardous
Material or to health and safety matters.

“Environmental Liability” shall mean any liability, contingent or otherwise (including any
liability for damages, costs of environmental investigation and remediation, costs of
administrative oversight, fines, natural resource damages, penalties or indemnities), of the
Sponsor or any Subsidiary directly or indirectly resulting from or based upon (a) any actual or
alleged violation of any Environmental Law, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) any actual or alleged exposure to
any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e)
any contract, agreement or other consensual arrangement pursuant to which liability is assumed or
imposed with respect to any of the foregoing.

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time
to time, and any successor statute.

“ERISA Affiliate” shall mean any trade or business (whether or not incorporated), which,
together with the Sponsor, is treated as a single employer under Section 414(b) or (c) of the Code
or, solely for the purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.

“ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the
Sponsor or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (e) the receipt by the Sponsor or any ERISA Affiliate from the PBGC or a
plan administrator appointed by the PBGC of any notice relating to an intention to terminate any
Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Sponsor or
any of its ERISA Affiliates of any liability with
respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g)
the receipt by the Sponsor or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the

 

9

 

Sponsor or any ERISA Affiliate of any notice, concerning the imposition
of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be,
insolvent or in reorganization, within the meaning of Title IV of ERISA.

“Exchange Rate” shall mean the offered rate at which Canadian Dollars may be exchanged into US
Dollars or US Dollars may be exchanged into Canadian Dollars, as the case may be, as set forth at
approximately 11:00 a.m. on such day on the Reuters NFX Page (or if such page is not available, or
the rate does not appear on such page, the comparable page on the Telerate or Bloomberg Service).
In the event that such rate does not appear on the applicable page of any such services, the
“Exchange Rate” shall be determined by reference to such other publicly available services for
displaying exchange rates as may be agreed upon by the Servicer and the Sponsor, or, in the absence
of such agreement, such Exchange Rate shall instead be the offered spot rate of exchange of the
Servicer or, if the Servicer shall so determine, one of its affiliates in the market where its
foreign currency exchange operations in respect of Canadian Dollars are then being conducted, at or
about 10:00 a.m., local time, on such date for the purchase or sale of US Dollars for delivery two
Business Days later; provided that if at the time of any such determination, for any
reason, no such spot rate is being quoted, the Servicer, after consultation with the Sponsor, may
use any reasonable method it deems appropriate to determine such rate, and such determination shall
be conclusive absent manifest error. The Exchange Rate shall be initially the Exchange Rate as of
the Effective Date and shall be reset periodically on each Reset Date pursuant to Section
2.14(c).

“Existing Loan Commitments” means any of the commitments to make loans made by the Servicer
pursuant to the Existing Loan Facility Agreement as in effect from time to time.

“Existing Loan Facility Agreement” shall have the meaning set forth in the recitals hereof.

“Existing Loan” means any of the loans made by the Servicer pursuant to the Existing Loan
Facility Agreement as in effect from time to time.

“Existing Note” means any of the promissory notes from the Borrowers to the Servicer
substantially in the form attached to the Existing Loan Facility Agreement as in effect from time
to time.

“Facility Commitment” shall have the meaning set forth in Section 2.1(a).

“Facility Commitment Termination Date” shall have the meaning set forth in Section
2.1(a).

“Federal Funds Rate” shall mean, for any day, the rate per annum (rounded upwards, if
necessary, to the next 1/100th of 1%) equal to the weighted average of the rates on
overnight Federal funds transactions with member banks of the Federal Reserve System arranged by
Federal funds brokers, as published by the Federal Reserve Bank of New York on the next succeeding
Business Day or if such rate is not so published for any Business Day, the Federal Funds Rate for
such day shall be the average rounded upwards, if necessary, to the next 1/100th of 1% of the
quotations for such day on such transactions received by the Servicer from three Federal funds
brokers of recognized standing selected by the Servicer.

“Fee Letter” shall mean that certain letter agreement, dated as of even date herewith, by and
between the Sponsor and the Servicer, setting forth certain fees applicable to the loan facility
described herein, either as originally executed or as hereafter amended or modified.

 

10

 

“Final Termination Date” shall mean the date that is ninety (90) days after the last Maturity
Date of the Loans.

“Financing Statement” shall mean, (a) with respect to a US Loan, a document that among other
things, describes the Collateral, the proper filing of which perfects a security interest in the
Collateral described therein under the laws of the state in which such document is filed and (b)
with respect to a Canadian Loan, a document that among other things, describes the Collateral, the
proper filing of which perfects a security interest in the Collateral described therein under the
laws of the province or territory in which such document is filed.

“Fiscal Year” shall mean a fiscal year of the Sponsor; references to a Fiscal Year with a
number corresponding to any calendar year (e.g., the “Fiscal Year 2008”) refers to the
Fiscal Year ending during such calendar year.

“Fixed Charge Coverage Ratio” shall mean, at any date, the ratio of (a) Consolidated EBITDAR
for the four consecutive fiscal quarters of the Sponsor ending on such date to (b) Consolidated
Fixed Charges for the four consecutive fiscal quarters of the Sponsor ending on such date.

“Foreign Subsidiary” shall mean any Subsidiary of the Sponsor that is not a Domestic
Subsidiary.

“Franchise Agreement” shall mean the written agreement between Sponsor and a Franchisee
whereby the Franchisee is authorized to establish an Aaron’s franchise.

“Franchisee” shall mean a Canadian Franchisee or a US Franchisee, as the case may be.

“Franchisee Borrowing Base” shall mean, on any date of determination, an amount equal to a
multiple of Rental Revenue for the most recently ended three calendar months, as determined for
each Borrower by Aaron’s and specified in the Funding Approval Notice for such Borrower.

“Franchisee Loan” shall mean either a Canadian Loan or a US Loan, as the case may be.

“Franchisee Loan Program” shall mean the transaction evidenced by (i) this Agreement wherein
the Sponsor has guaranteed, to the extent set forth herein, certain obligations of Franchisees of
the Sponsor, and (ii) the other Operative Documents executed in connection herewith and therewith.

“Funded Participation” shall mean (x) with respect to any Participant other than SunTrust
Bank, the portion of such Participant’s Participating Commitment that has been funded in US Dollars
or Canadian Dollars, and (y) with respect to SunTrust Bank, the portion of the Facility Commitment
(including Swing Line Advances) that has been funded in US Dollars or Canadian Dollars, less the
aggregate Funded Participations of all other Participants.

“Funding Approval Notice” shall mean a written notice to the Servicer from Sponsor setting
forth the conditions of a proposed Loan Commitment, consistent with the requirements therefor as
set forth in this Agreement, and containing such information and in substantially such form as
shall be agreed to by Servicer and Sponsor pursuant to the Servicing Agreement.

 

11

 

“GAAP” shall mean generally accepted accounting principles in the United States applied on a
consistent basis and subject to the terms of Section 1.2.

“Governmental Authority” shall mean the government of the United States of America, Canada,
any other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

“Guarantee” of or by any Person (the “guarantor”) shall mean any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly and including any obligation, direct or indirect, of the guarantor (a) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation or to purchase (or to advance or supply funds for the purchase of) any security
for the payment thereof, (b) to purchase or lease property, securities or services for the purpose
of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to
maintain working capital, equity capital or any other financial statement condition or liquidity of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation or (d) as an account party in respect of any letter of credit or letter of guaranty
issued in support of such Indebtedness or obligation; provided, that the term “Guarantee“
shall not include endorsements for collection or deposits in the ordinary course of business. The
amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount
of the primary obligation in respect of which Guarantee is made or, if not so stated or
determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person
is required to perform thereunder) as determined by such Person in good faith. The term “Guarantee“
used as a verb has a corresponding meaning.

“Guaranteed Obligations” shall mean the aggregate amount of all Loan Indebtedness of all
Borrowers outstanding under all Loan Documents to include, without limitation (i) all principal,
interest and commitment fees due with respect to all Loans, including post-petition interest in any
proceeding under federal bankruptcy laws, (ii) all fees, expenses, and amounts payable by all
Borrowers for reimbursement or indemnification under the terms of all Loan Agreements and all other
Loan Documents executed in connection with the Loan to such Borrower, (iii) all amounts advanced by
Servicer to protect or preserve the value of any security for the Loans, and (iv) all renewals,
extensions, modifications, and refinancings (in whole or in part) of any of the amounts referred to
in clauses (i) and (ii) above).

“Guarantors” shall mean, collectively, Aaron Investment Company and certain other subsidiaries
of the Sponsor that from time to time become parties to the Guaranty Agreement and their respective
successors and permitted assigns.

“Guaranty Agreement” shall mean the Guaranty Agreement executed by certain Subsidiaries of the
Sponsor in favor of the Servicer and the Participants, substantially in the form of Exhibit
D, as the same may be amended, restated, supplemented or otherwise modified from time to time

“Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or
medical wastes and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

 

12

 

“Indebtedness” of any Person shall mean, without duplication (i) all obligations of such
Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (iii) all obligations of such Person in respect of the deferred
purchase price of property or services (other than trade payables incurred in the ordinary course
of business; provided, that for purposes of Section 9.6, trade payables overdue by
more than 120 days shall be included in this definition except to the extent that any of such trade
payables are being disputed in good faith and by appropriate measures), (iv) all obligations of
such Person under any conditional sale or other title retention agreement(s) relating to property
acquired by such Person, (v) all Capital Lease Obligations of such Person, (vi) all obligations,
contingent or otherwise, of such Person in respect of letters of credit, acceptances or similar
extensions of credit, (vii) all Guarantees of such Person of the type of Indebtedness described in
clauses (i) through (vi) above, (viii) all Indebtedness of a third party secured by any Lien on
property owned by such Person, whether or not such Indebtedness has been assumed by such Person,
(ix) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or
otherwise acquire for value any common stock of such Person, and (x) Off-Balance Sheet Liabilities.
The Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture
in which such Person is a general partner or a joint venturer, except to the extent that the terms
of such Indebtedness provide that such Person is not liable therefor.

“Lease Contract” shall mean a contract between a Borrower and a customer to lease Merchandise
in the form approved by the Sponsor (and which may include purchase options).

“Lien” shall mean any mortgage, pledge, security interest, lien (statutory or otherwise),
charge, encumbrance, hypothecation, assignment, deposit arrangement, or other arrangement having
the practical effect of the foregoing or any preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including any conditional sale or other
title retention agreement and any capital lease having the same economic effect as any of the
foregoing). A covenant not to grant a Lien or a “Negative Pledge” shall not be determined a Lien
for purposes of this Agreement.

“Line of Credit Commitment” shall mean either a US Line of Credit Commitment or Canadian Line
of Credit Commitment, as the case may be.

“Line of Credit Loans” shall mean either a US Line of Credit Loan or Canadian Line of Credit
Loan, as the case may be.

“Line of Credit Note” shall mean either a US Line of Credit Note or Canadian Line of Credit
Note, as the case may be.

“Loans” shall mean either a US Loan or Canadian Loan, as the case may be.

“Loan Agreement” shall mean either a US Loan Agreement or a Canadian Loan Agreement, as the
case may be.

“Loan Commitment” shall mean either a US Loan Commitment or a Canadian Loan Commitment, as the
case may be.

“Loan Default” shall mean the occurrence of one or more of the following events with respect
to any Loan: (i) a Loan Payment Default, (ii) the bankruptcy or insolvency of the Borrower or any
Guarantor of such Loan, or the appointment of a receiver, trustee, custodian or similar fiduciary
for such Borrower

 

13

 

or Guarantor, or the assignment for the benefit of creditors by such Borrower or
Guarantor, or the offering of settlement or composition to the unsecured creditors of such Borrower
or Guarantor generally or (iii) the termination of (or failure to renew) the Franchise Agreement to
which the Borrower of such Loan is a party.

“Loan Documents” shall mean, the US Loan Documents and the Canadian Loan Documents

“Loan Indebtedness” shall mean all amounts due and payable by a Borrower under the terms of
the Loan Documents governing the Loan to such Borrower, including, without limitation, outstanding
principal, accrued interest, any commitment fees, and all reasonable costs and expenses of any
legal proceeding brought by the Servicer to collect any of the foregoing (including without
limitation, reasonable attorneys’ fees actually incurred).

“Loan Payment Default” shall mean the failure of a Borrower to make a payment of principal,
accrued interest thereon or any other amounts, within the cure period following the due date
therefor, as provided under the applicable Loan Documents.

“Loan Term” shall mean, with respect to any Loan, the prescribed term of the Loan Commitment
relating to such Loan, as documented in the applicable Loan Documents, and any term-out period
thereafter; provided, however, that the Loan Term shall not exceed (x) in the case
of a Line of Credit Commitment, 364 days subject to extension in accordance with the terms of the
applicable Loan Agreement, plus, in the event that the Line of Credit Commitment is terminated upon
ninety (90) days’ prior notice from the Servicer, the Amortization Period and (y) in the case of a
US Revolving Commitment and a US Term Loan Commitment, four (4) years and (z) in the case of
Canadian Term Loan Commitment, two (2) years.

“Loudermilk Family” shall mean, collectively, Robert Charles Loudermilk, Sr., his spouse, his
children, his grandchildren and any trust which may be now or hereafter established for the sole
benefit of any of the foregoing persons.

“Margin Regulations” shall mean Regulation T, Regulation U and Regulation X of the Board of
Governors of the Federal Reserve System, as the same may be in effect from time to time.

“Master Note shall mean either a US Master Note or a Canadian Master Note, as the case may be.

“Material Adverse Effect” shall mean, with respect to any event, act, condition or occurrence
of whatever nature (including any adverse determination in any litigation, arbitration, or
governmental investigation or proceeding), whether singularly or in conjunction with any other
event or events, act or acts, condition or conditions, occurrence or occurrences whether or not
related, a material adverse change in, or a material adverse effect on, (i) the business, results
of operations, financial condition, assets, liabilities or prospects of the Sponsor and its
Subsidiaries taken as a whole, (ii) the ability of Sponsor or the Credit Parties taken as a whole
to perform any of their respective obligations under the Operative Documents (iii) the rights and
remedies of the Servicer and the Participants under any of the Operative Documents or (iv) the
legality, validity or enforceability of any of the Operative Documents.

“Material Indebtedness” shall mean Indebtedness of any one or more of the Sponsor and the
Subsidiaries in an aggregate principal amount exceeding $5,000,000.

 

14

 

“Maturity Date” shall mean, with respect to any Loan, the date set forth under the applicable
Loan Documents when the related Loan Commitment has terminated and all principal and interest with
respect to such Loan shall become due and payable in full; provided that, each Maturity
Date shall be a Borrower Payment Date or Canadian Borrower Payment Date, as the case may be.

“Maximum Commitment Amount” shall mean Two Hundred Million and No/100 Dollars ($200,000,000),
as such amount may be reduced pursuant to Section 2.7, Section 2.9 or Article
IX.

“Merchandise” shall mean goods distributed or sold to Franchisees through Sponsor.

“Monthly Servicing Report” shall have the meaning set forth in Section 3.3.

“Moody’s” shall mean Moody’s Investors Service, Inc.

“Multiemployer Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA.

“Non-Defaulting Participant” shall mean, at any time, a Participant that is not a Defaulting
Participant.

“Off-Balance Sheet Liabilities” of any Person shall mean (i) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person, other
than indemnity obligations for any breach of any representation or warranty which are customary in
non-recourse sales of such assets, (ii) any liability of such Person under any sale and leaseback
transactions which do not create a liability on the balance sheet of such Person, (iii) any
liability of such Person under any so-called “synthetic” lease transaction or (iv) any obligation
arising with respect to any other transaction which is the functional equivalent of or takes the
place of borrowing but which does not constitute a liability on the balance sheet of such Person.

“Opening Date” shall mean, with respect to each store location, the date determined by the
Sponsor to be the opening date of such location in accordance with its standard practice, as
notified to the Servicer in accordance with the terms hereof.

“Operative Documents” shall mean this Agreement, the Guaranty Agreement, the Servicing
Agreement, the Fee Letter and any other documents delivered by Sponsor or any Guarantor to the
Servicer or the Participants in connection herewith or therewith.

“PAD Authorization” means a pre-authorized debit authorization executed by Borrower
authorizing Bank to cause a specified account of Borrower to be debited to pay amounts payable,
such authorization to be in the form attached to the Servicing Agreement as Exhibit K or such other
form as Bank may require from time to time.

“Parent Company” shall mean, with respect to a Participant, the bank holding company (as
defined in Federal Reserve Board Regulation Y), if any, of such Participant, and/or any Person
owning, beneficially or of record, directly or indirectly, a majority of the shares of such
Participant.

“Participant” shall mean SunTrust, the other lending institutions listed on the signature
pages hereof and each assignee thereof, if any, pursuant to the terms hereof.

 

15

 

“Participant Canadian Monthly Payment Date” shall mean the last day of each calendar month;
provided, however, if such day is not a Canadian Business Day, the next succeeding
Canadian Business Day which is also a Business Day.

“Participant Canadian Quarterly Payment Date” shall mean the last day of each calendar
quarter; provided, however, if such day is not a Canadian Business Day, the next
succeeding Canadian Business Day which is also a Business Day.

“Participant Commitment Fee” shall have the meaning set forth in Section 2.4.

“Participant Funding” shall mean a funding by the Participants of their respective
Participant’s Interest in Advances or Loans in US Dollars or Canadian Dollars.

“Participant Insolvency Event” shall mean that (i) a Participant or its Parent Company is
insolvent, or is generally unable to pay its debts as they become due, or admits in writing its
inability to pay its debts as they become due, or makes a general assignment for the benefit of its
creditors, or (ii) a Participant or its Parent Company is the subject of a bankruptcy, insolvency,
reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, custodian
or the like has been appointed for such Participant or its Parent Company, or such Participant or
its Parent Company has taken any action in furtherance of or indicating its consent to or
acquiescence in any such proceeding or appointment, or (iii) a Participant or its Parent Company
has been adjudicated as, or determined by any Governmental Authority having regulatory authority
over such Person or its assets to be, insolvent; provided that, for the avoidance of doubt, a
Participant Insolvency Event shall not be deemed to have occurred solely by virtue of the
ownership or acquisition of any equity interest in or control of a Participant or a Parent Company
thereof by a Governmental Authority or an instrumentality thereof. 

“Participant Monthly Payment Date” shall mean the last day of each calendar month;
provided, however, if such day is not a Business Day, the next succeeding Business
Day.

“Participant Quarterly Payment Date” shall mean the last day of each calendar quarter;
provided, however, if such day is not a Business Day, the next succeeding Business
Day.

“Participant’s Interest” shall have the meaning set forth in Section 2.2.

“Participant’s Unused Commitment” shall mean, with respect to any Participant, the difference
between such Participant’s Participating Commitment Amount and the US Dollar Equivalent of such
Participant’s Funded Participation.

“Participating Commitment” shall mean the commitment of each Participant to fund its
Participant’s Interest in outstanding US Loans in US Dollars and in outstanding Canadian Loans in
Canadian Dollars, in an aggregate amount (on a US Dollar Equivalent basis) not to exceed such
Participant’s Participating Commitment Amount.

“Participating Commitment Amount” shall mean the amount set forth opposite each Participant’s
name on Schedule 1.1(b) attached hereto, as such amount may be modified by assignment
pursuant to the terms hereof; provided, that, following the termination of the
Facility Commitment, each Participant’s Participating Commitment Amount shall be deemed to be its
Pro Rata Share of the aggregate principal amount of all Loan Commitments.

 

16

 

“Participation Certificate” shall mean a certificate issued by the Servicer to a Participant,
substantially in the form of Exhibit E attached hereto, evidencing such Participant’s
ownership interest conveyed hereunder.

“Payment Period” shall mean a period of one (1) month; provided that (i) the
first day of a Payment Period must be a Business Day, (ii) any Payment Period that would otherwise
end on a day that is not a Business Day shall be extended to the next succeeding Business Day,
(iii) the first Payment Period hereunder shall commence on the date hereof and shall end on the
last day of the next succeeding calendar month and (iv) the first day of any succeeding Payment
Period shall be the last day of the preceding Payment Period and shall end on the last day of the
next succeeding calendar month.

“PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA,
and any successor entity performing similar functions.

“Permitted Acquisition” shall mean any Acquisition so long as (a) immediately before and after
giving effect to such Acquisition, no Credit Event is in existence, (b) such Acquisition has been
approved by the board of directors of the Person being acquired prior to any public announcement
thereof, (c) the total consideration (including all cash, debt, stock and other property, and
assumption of obligations for borrowed money) of any single Acquisition or series of related
Acquisitions does not exceed $75,000,000, (d) the total consideration (including all cash, debt,
stock and other property, and assumption of obligations for borrowed money) of all Acquisitions
during any fiscal year does not exceed $150,000,000 and (e) immediately after giving effect to such
Acquisition, the Sponsor and its Subsidiaries will not be engaged in any business other than
businesses of the type conducted by the Sponsor and its Subsidiaries on the Effective Date and
businesses reasonably related thereto. As used herein, Acquisitions will be considered related
Acquisitions if the sellers under such Acquisitions are the same Person or any Affiliate thereof.

“Permitted Encumbrances” shall mean

(i) Liens imposed by law for taxes not yet due or which are being contested in good
faith by appropriate proceedings and with respect to which adequate reserves are being
maintained in accordance with GAAP;

(ii) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics,
materialmen and other Liens imposed by law created in the ordinary course of business for
amounts not yet due or which are being contested in good faith by appropriate proceedings
and with respect to which adequate reserves are being maintained in accordance with GAAP;

(iii) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security laws or regulations;

(iv) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;

(v) judgment and attachment liens not giving rise to a Credit Event or Liens created
by or existing from any litigation or legal proceeding that are currently being contested in good

 

17

 

faith by appropriate proceedings and with respect to which adequate reserves are being
maintained in accordance with GAAP; and

(vi) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property
or materially interfere with the ordinary conduct of business of the Sponsor and its
Subsidiaries taken as a whole;

(vii) other Liens incidental to the conduct of its business or the ownership of its
property and assets which were not incurred in connection with the borrowing of money or the
obtaining of advances or credit, and which do not in the aggregate materially detract from
the value of its property or assets or materially impair the use thereof in the operation of
its business; and

(viii) Liens on insurance policies owned by the Sponsor on the lives of its officers
securing policy loans obtained from the insurers under such policies, provided that (A) the
aggregate amount borrowed on each policy shall not exceed the loan value thereof, and (B)
the Sponsor shall not incur any liability to repay any such loan;

provided, that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness.

“Permitted Investments” shall mean:

(i) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States), in each case
maturing within one year from the date of acquisition thereof;

(ii) commercial paper having an A or better rating, at the time of acquisition thereof,
of S&P or Moody’s and in either case maturing within one year from the date of acquisition
thereof;

(iii) certificates of deposit, bankers’ acceptances and time deposits maturing within
one year of the date of acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, any domestic office of any commercial
bank organized under the laws of the United States or any state thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000;

(iv) fully collateralized repurchase agreements with a term of not more than 30 days
for securities described in clause (i) above and entered into with a financial institution
satisfying the criteria described in clause (iii) above; and

(v) mutual funds investing solely in any one or more of the Permitted Investments
described in clauses (i) through (iv) above.

 

18

 

“Person” shall mean any individual, partnership, firm, corporation, association, joint
venture, limited liability company, trust or other entity, or any Governmental Authority.

“Personal Guaranty” shall mean any guaranty from a principal of a Borrower substantially in
the form required by the Servicing Agreement.

“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to
the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in
respect of which the Sponsor or any ERISA Affiliate is (or, if such plan were terminated, would
under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Prime Rate” shall mean the per annum rate of interest designated from time to time by
SunTrust to be its prime rate. The Prime Rate is a reference rate and does not necessarily
represent the lowest or best rate of interest that is being offered by SunTrust to its borrowers.

“Pro Rata Share” shall mean, with respect to each of the Participants at any time, the
percentage determined by dividing such Participant’s Participating Commitment at such time by the
total principal amount of all Participating Commitments at such time.

“RBC Loan Facility Agreement” shall mean the credit facility agreement among the Sponsor,
Royal Bank of Canada and any other parties thereto dated on or about the date hereof, whereby the
Sponsor and any Subsidiary may, among other things, guarantee loans made to Canadian franchise
operators and owners of the Sponsor pursuant to the terms thereof as amended, restated,
supplemented, replaced, refinanced or otherwise modified from time to time.

“Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve
System, as the same may be in effect from time to time.

“Release” means any release, spill, emission, leaking, dumping, injection, pouring, deposit,
disposal, discharge, dispersal, leaching or migration into the environment (including ambient air,
surface water, groundwater, land surface or subsurface strata) or within any building, structure,
facility or fixture.

“Rental Revenue” shall mean, with respect to any Borrower for any period, the gross revenues
of such Borrower from leases to the public of such Borrower’s furniture inventory and lease
equipment, including without limitation, all customer deposits, advance lease payments, waiver
fees, late fees, delivery fees, nonsufficient funds fees, reinstatement fees, but excluding all
retail sales proceeds and sales taxes.

“Reportable Event” shall have the meaning assigned to such term in ERISA.

“Required Participants” shall mean (x) at any time prior to termination of the Facility
Commitment, Participants holding at least 66 2/3% of the sum of (x) the aggregate Funded
Participations, plus (y) the Participant’s Unused Commitments, and (y) at any time on and
after the termination of the Facility Commitment, Participants holding at least 66 2/3% of the
aggregate outstanding Funded Participations at such time; provided however, that to
the extent that any Participant is a Defaulting Participant, such Defaulting Participant and all of
its Commitments, Funded Participations and Participant’s Unused Commitments shall be excluded for
purposes of determining Required Participants.

 

19

 

“Requirement of Law” for any person shall mean the articles or certificate of incorporation
and by-laws or other organizational or governing documents of such Person, and any law, treaty,
rule or regulation, or determination of an arbitrator or a court or other governmental authority,
in each case applicable to or binding upon such Person or any of its property or to which such
Person or any of its property is subject.

“Reset Date” shall have the meaning assigned to such term in Section 2.14(c).

“Response Period” shall mean with respect to any Loan, a period of seventy (70) days
commencing on the day next succeeding the day on which the Sponsor receives a notice from the
Servicer that a Loan Payment Default has occurred and is continuing, provided,
however, that no Response Period for any Loan shall extend beyond the Final Termination
Date.

“Responsible Officer” shall mean any of the president, the chief executive officer, the chief
operating officer, the chief financial officer, the treasurer, the controller or a vice president
of the Sponsor or such other representative of the Sponsor as may be designated in writing by any
one of the foregoing with the consent of the Servicer; and, with respect to the financial covenants
only, the chief financial officer, the treasurer or the controller of the Sponsor.

“Restricted Payment” shall have the meaning given to such term in Section 8.5.

“Revolving Credit Agreement” shall mean that certain Revolving Credit Agreement, dated as of
May 28, 2008, by and among Sponsor, the lenders from time to time parties thereto and SunTrust Bank
as Administrative Agent, as amended, restated, modified or supplemented from time to time.

“Revolving Credit Documents” shall mean, collectively, the Revolving Credit Agreement and any
and all other instruments, agreements, documents and writings executed in connection with the
foregoing.

“RIMCO Loan Facility Agreement” shall mean that certain Loan Facility Agreement and Guaranty
dated as of May 29, 2007 by and between the Sponsor and the Servicer, as amended, restated,
supplemented or otherwise modified from time to time.

“RIMCO Loan Facility Documents” shall mean, collectively, the RIMCO Loan Facility Agreement
and any and all other instruments, agreements, documents and writings executed in connection with
the foregoing.

“S&P” shall mean Standard & Poor’s

“Servicing Agreement” shall mean that certain Second Amended and Restated Servicing Agreement,
dated as of the date hereof, by and between the Sponsor and the Servicer, as amended, restated,
supplemented or otherwise modified from time to time.

“Servicing Fee” shall mean the fee payable to the Servicer pursuant to the terms of the
Servicing Agreement.

“Servicer” shall mean SunTrust Bank and its successors and assigns.

 

20

 

“Sponsor’s Fee” shall have the meaning set forth in the Servicing Agreement.

“Spousal Consent” shall mean any agreement provided by the spouse of any Person executing a
Guaranty to the extent such spouse has not personally executed a Guaranty, to be substantially in
the form provided by the Servicer.

“Store Opening Information Sheet” shall have the meaning assigned to such term in the
Servicing Agreement.

“Subordinated Debt” shall have the meaning set forth in Section 10.7.

“Subsidiary” shall mean, with respect to any Person (the “parent”), any corporation,
partnership, joint venture, limited liability company, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, partnership, joint venture, limited liability company, association
or other entity of which securities or other ownership interests representing more than 50% of the
equity or more than 50% of the ordinary voting power, or in the case of a partnership, more than
50% of the general partnership interests are, as of such date, owned, controlled or held, by the
parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of
the parent. Unless otherwise indicated, all references to “Subsidiary” hereunder shall mean a
Subsidiary of the Sponsor.

“SWIFT” means Society for Worldwide Interbank Financial Telecommunication.

“Swing Line Advances” shall have the meaning set forth in Section 2.3(a).

“Taxes” shall mean any and all present or future taxes, levies, imposts, duties, deductions,
charges or withholdings imposed by any Governmental Authority.

“Total Adjusted Debt to Total Adjusted Capital Ratio” shall mean, at any date of
determination, the ratio of (a) Consolidated Total Adjusted Debt as of such date to (b)
Consolidated Total Adjusted Capital as of such date.

“Total Debt to EBITDA Ratio” shall mean, at any date of determination, the ratio of (a)
Consolidated Total Debt as of such date to (b) Consolidated EBITDA for the four consecutive fiscal
quarters of the Sponsor ending on such date.

“Transaction Documents” shall mean, collectively, the Operative Documents and the Revolving
Credit Documents.

“2005 Note Agreement” shall mean that certain Note Purchase Agreement, dated as of July 27,
2005, by and among Sponsor, the other Loan Parties party thereto, The Prudential Insurance Company
of America and the other purchasers signatory thereto as such Note Purchase Agreement may be
amended, supplemented, restated, refinanced, replaced or otherwise modified from time to time in
accordance with the terms of this Agreement

“Unmatured Credit Event” shall mean any condition or event which, with notice or the passage
of time or both, would constitute a Credit Event.

 

21

 

“US Borrower” shall mean any Franchisee domiciled in the United States of America that is
primarily liable for repayment of a US Loan as a result of having executed US Loan Documents as
maker, or its permitted assignee.

“US Dollar” and the sign “$” shall mean lawful money of the United States of America.

“US Dollar Equivalent” shall mean, on any date, (i) with respect to any amount denominated in
US Dollars, such amount and (ii) with respect to any amount denominated in Canadian Dollars, the
amount of US Dollars that would be required to purchase the amount of such Canadian Dollars on such
date based upon the Exchange Rate as of the applicable date of determination.

“US Franchisee” shall mean those certain store operators located in the United States of
America that own and operate stores under the Aaron’s franchise.

“US Funded Participation” shall mean, for any Participant, the portion of such Participant’s
Funded Participation in US Dollars.

“US LIBOR” shall mean, for any Payment Period the offered rate for deposits in US Dollars, for
a period of one month and in an amount comparable to the aggregate outstanding Funded
Participations in US Dollars as of the first day of such Payment Period, appearing on the display
designated on Reuters Screen LIBOR01 Page (or any successor page) as the London interbank offered
rate for deposits in US Dollars at approximately 11:00 a.m. (London, England time) on the day that
is two Business Days prior to the first day of the Interest Period; provided, that if the
Servicer determines that the relevant foregoing sources are unavailable for the relevant Payment
Period, LIBOR shall mean the rate of interest determined by the Servicer to be the average (rounded
upward, if necessary, to the nearest 1/100th of 1%) of the rates per annum at which
deposits in US Dollars are offered to the Servicer two (2) Business Days preceding the first day of
such Interest Period by leading banks in the London interbank market as of 10:00 a.m. for delivery
on the first day of such Payment Period, for the number of days comprised therein and in an amount
comparable to the amount of the Funded Participation of the Servicer.

“US Line of Credit Commitment” shall mean a commitment to make Line of Credit Loans to a US
Borrower in US Dollars pursuant to a US Loan Agreement.

“US Line of Credit Loans” shall mean Advances made to a US Borrower pursuant to a US Line of
Credit Commitment.

“US Line of Credit Note” shall mean a US Line of Credit Note, executed by a US Borrower in
favor of the Servicer, evidencing such US Borrower’s obligation to repay all US Line of Credit
Loans made to it pursuant to a US Line of Credit Commitment, substantially in the form of Exhibit
A-1 to the US Loan Agreement, with such changes as the Sponsor and the Servicer shall agree to from
time to time.

“US Loan” shall mean either a US Term Loan, a US Revolving Loan, a US Line of Credit Loan or
an Existing Loan, as the case may be.

“US Loan Agreement” shall mean a Loan and Security Agreement setting forth the terms and
conditions, as between a US Borrower and the Servicer, under which the Servicer has established a
US Loan Commitment to make Advances to such Borrower pursuant to the US Loan Commitment,

 

22

 

substantially in the form of Exhibit C, with such changes as the Sponsor and the
Servicer shall agree to, subject to Section 3.1(b); provided, however, that any loan
agreement or line of credit agreement executed by any Borrower and the Servicer prior to the
Effective Date shall be substantially in the form required under the Existing Loan Facility
Agreement.

“US Loan Commitment” shall mean the commitment by the Servicer to make Advances to a US
Borrower in US Dollars in the amount not exceeding, and upon the terms described in, the applicable
Funding Approval Notice and the applicable Loan Documents, which US Loan Commitment may be a US
Line of Credit Commitment, US Revolving Commitment or a US Term Loan Commitment.

“US Loan Documents” shall mean, with respect to any US Loan, the US Loan Agreement, the US
Master Note, any Personal Guaranty, any Spousal Consent, the Collateral Agreements, in each case
relating to such Loan, any other documents relating to such Loan delivered by any Borrower or any
guarantor or surety thereof to the Servicer and any amendments thereto (provided that such
amendments are made with the consent of Sponsor, where such consent is required under this
Agreement).

“US Master Note” shall mean a US Line of Credit Note, US Revolving Note, or US Term Note, as
the case may be.

“US Revolving Commitment” shall mean a commitment to make US Revolving Loans to a US Borrower
pursuant to a Loan Agreement.

“US Revolving Loans” shall mean Advances made to a US Borrower pursuant to a US Revolving
Commitment.

“US Revolving Note” shall mean that certain Revolving Note, executed by a US Borrower in favor
of the Servicer, evidencing such US Borrower’s obligation to repay all US Revolving Loans made to
it pursuant to a US Revolving Commitment, substantially in the form of Exhibit A-2 to the US Loan
Agreement, with such changes as the Sponsor and the Servicer shall agree to from time to time.

“US Term Loan Commitment” shall mean a commitment to make US Term Loans to a US Borrower
pursuant to a Loan Agreement.

“US Term Loans” shall mean Advances made to a US Borrower pursuant to a US Term Loan
Commitment.

“US Term Note” shall mean that certain Term Note, executed by a US Borrower in favor of the
Servicer, evidencing such US Borrower’s obligation to repay all US Term Loans made to it pursuant
to a US Term Loan Commitment, substantially in the form of Exhibit A-3 to the Loan Agreement, with
such changes as the Sponsor and the Servicer shall agree to from time to time.

“Wind-Down Event” shall mean the event that the Facility Commitment is not extended for any
reason and the Facility Commitment Termination Date occurs.

“Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.

 

23

 

Section 1.2. Accounting Terms and Determination. Unless otherwise defined or
specified herein, all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required to be delivered
hereunder shall be prepared, in accordance with GAAP as in effect from time to time, applied on a
basis consistent with the most recent audited consolidated financial statement of the Sponsor
delivered pursuant to Section 6.1(a); provided, that if the Sponsor
notifies the Servicer that the Sponsor wishes to amend any covenant in Article VII to
eliminate the effect of any change in GAAP on the operation of such covenant (or if the Servicer
notifies the Sponsor that the Required Participants wish to amend Article VII for such
purpose), then the Sponsor’s compliance with such covenant shall be determined on the basis of GAAP
in effect immediately before the relevant change in GAAP became effective, until either such notice
is withdrawn or such covenant is amended in a manner satisfactory to the Sponsor and the Required
Participants. Notwithstanding any other provision contained herein, all terms of an accounting or
financial nature used herein shall be construed, and all computations of amounts and ratios
referred to herein shall be made, without giving effect to any election under Statement of
Financial Accounting Standards 159 (or any other Financial Accounting Standard having a similar
result or effect) to value any Indebtedness or other liabilities of Sponsor, any Guarantor or any
Subsidiary thereof at “fair value”, as defined therein.

Section 1.3.
Other Definitional Terms. (a) The words “hereof”, “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Article, Section, Schedule,
Exhibit and like references are to this Agreement unless otherwise specified.

(b) Any “Franchisee Loan”, “Loan”, “Loan Commitment” or “Master Note” existing on the
Effective Date shall be deemed to be a US Franchise Loan, US Loan, US Loan Commitment, or US Master
Note, as applicable.

(c) Any “Revolving Loan”, “Revolving Commitment” or “Revolving Note” existing on the
Effective Date shall be deemed to be a US Revolving Loan, US Revolving Commitment or US Revolving
Note, as applicable.

(d) Any “Term Loan”, “Term Loan Commitment” or “Term Note” existing on the Effective Date
shall be deemed to be a US Term Loan, US Term Loan Commitment or US Term Note, as applicable.

(e) Any “Line of Credit Loan”, “Line of Credit Commitment” or “Line of Credit Note” existing
on the Effective Date shall be deemed to be a US Line of Credit Loan, US Line of Credit Commitment
or US Line of Credit Note, as applicable.

Section 1.4. Exhibits and Schedules. All Exhibits and Schedules attached hereto are by
reference made a part hereof.

ARTICLE II

LOAN FACILITY

Section 2.1. Establishment of Facility Commitment; Terms of Loans.

 

24

 

(a) Facility Commitment. Subject to and upon the terms and conditions set forth in
this Agreement and the other Operative Documents, and in reliance upon the guaranty and other
obligations of the Sponsor set forth herein, the Servicer hereby establishes a commitment to the
Sponsor to establish Loan Commitments and to make Advances thereunder in US Dollars and Canadian
Dollars to such Borrowers as may be designated by the Sponsor in its Funding Approval Notices
during a period commencing on the date hereof and ending on May 20, 2011 (as such period may be
extended for one or more subsequent 364-day periods pursuant to Section 2.8, the “Facility
Commitment Termination Date”) in an aggregate committed amount at any one time outstanding not to
exceed the Maximum Commitment Amount (the “Facility Commitment”); provided that,
notwithstanding any provision of this Agreement to the contrary, (x) at no time shall the Servicer
establish any Loan Commitment for a Borrower if after giving effect to such Loan Commitment, the US
Dollar Equivalent of the aggregate committed amounts of all Loan Commitments outstanding pursuant
to the Facility Commitment would exceed the Maximum Commitment Amount and (y) at no time shall the
Servicer establish any Canadian Loan Commitment for a Canadian Borrower if after giving effect to
such Canadian Loan Commitment, the aggregate committed amounts of all Canadian Loan Commitments
outstanding pursuant to the Facility Commitment would exceed the Canadian Subfacility Amount.

(b) Authorization of US Line of Credit Commitment; Loan Terms. Within the limits of
the Facility Commitment and in accordance with the procedures set forth in this Agreement and the
Servicing Agreement, the Sponsor may authorize the Servicer to establish a US Line of Credit
Commitment in favor of a US Franchisee who meets the credit criteria established by the Sponsor.
The amount of each US Line of Credit Commitment shall be determined by the Sponsor but shall not be
less than $100,000. Pursuant to the US Line of Credit Commitment the Servicer shall agree to make
Advances to the US Borrower thereunder. Each US Line of Credit Loan shall bear interest at the
Borrower Rate designated by Sponsor in the applicable Funding Approval Notice, and interest shall
be payable on each Borrower Payment Date and on the Maturity Date of such US Line of Credit Loan
when all principal and interest shall be due and payable in full. Each US Line of Credit Loan may
be prepaid in full or in part on any Business Day, without premium or penalty. The Loan Term of
each US Line of Credit Commitment shall be, initially, one year, but shall automatically renew
unless terminated by ninety (90) days’ prior written notice by Servicer to the US Borrower prior to
the first anniversary date and may thereafter be terminated at any time by Servicer upon ninety
(90) days’ prior written notice by Servicer to the US Borrower; provided that the amounts
outstanding thereunder shall be allowed to term out over the Amortization Period as provided below.
The proceeds of each Advance made pursuant to the US Line of Credit Commitments shall be used
solely to purchase inventory, and to the extent permitted by Sponsor, to pay state sales and use
taxes and freight charges. At the end of each month, the aggregate Advances made to each US
Borrower during such month (net of any prepayments during such month) shall be amortized (in
accordance with a straight-line amortization schedule) over the Amortization Period. In the event
that the US Line of Credit Commitment of any US Borrower is terminated by the Servicer as provided
above, such US Borrower shall, notwithstanding the other provisions of this Section 2.1(b),
amortize all outstanding Advances over the Amortization Period (in accordance with a straight-line
amortization schedule), with all Advances due and payable in full no later than 24 months
after termination. In the event that a US Borrower terminates its US Line of Credit Commitment,
all amounts advanced to such US Borrower shall be due and payable in full on the termination date,
together with all accrued and unpaid interest thereon. Each US Borrower shall agree to pay a
commitment fee on its unused US Line of Credit Commitment in an amount to be determined by the
Sponsor but in any event not to exceed 1.00% per annum, such commitment fee to be paid quarterly,
in arrears.

 

25

 

(c) Authorization of Canadian Line of Credit Commitment; Loan Terms. Within the
limits of the Facility Commitment and the Canadian Subfacility Amount, and in accordance with the
procedures set forth in this Agreement and the Servicing Agreement, the Sponsor may authorize the
Servicer to establish a Canadian Line of Credit Commitment in favor of a Canadian Franchisee who
meets the credit criteria established by the Sponsor. The amount of each Canadian Line of Credit
Commitment shall be determined by the Sponsor but shall not be less than Cdn $100,000. Pursuant to
the Canadian Line of Credit Commitment the Servicer shall agree to make Advances to the Canadian
Borrower thereunder. Each Canadian Line of Credit Loan shall bear interest at the Borrower Rate
designated by Sponsor in the applicable Funding Approval Notice, and interest shall be payable on
each Canadian Borrower Payment Date and on the Maturity Date of such Canadian Line of Credit Loan
when all principal and interest shall be due and payable in full. Each Canadian Line of Credit
Loan may be prepaid in full or in part only on a Canadian Borrower Payment Date for such Canadian
Line of Credit Loan (and not on other days), without premium or penalty. The Loan Term of each
Canadian Line of Credit Commitment shall be, initially, 364 days, but shall automatically renew
unless terminated by ninety (90) days’ prior written notice by Servicer to the Canadian Borrower
prior to the first anniversary date and may thereafter be terminated at any time by Servicer upon
ninety (90) days’ prior written notice by Servicer to the Canadian Borrower; provided that
the amounts outstanding thereunder shall be allowed to term out over the Amortization Period as
provided below. The proceeds of each Advance made pursuant to the Canadian Line of Credit
Commitments shall be used solely to purchase inventory, and to the extent permitted by Sponsor, to
pay sales and use taxes and freight charges. At the end of each month, the aggregate Advances made
to each Canadian Borrower during such month (net of any prepayments during such month) shall be
amortized (in accordance with a straight-line amortization schedule) over the Amortization Period.
In the event that the Canadian Line of Credit Commitment of any Canadian Borrower is terminated by
the Servicer as provided above, such Canadian Borrower shall, notwithstanding the other provisions
of this Section 2.1(c), amortize all outstanding Advances over the Amortization Period (in
accordance with a straight-line amortization schedule), with all Advances due and payable in full
no later than 24 months after termination. In the event that a Canadian Borrower terminates its
Canadian Line of Credit Commitment, all amounts advanced to such Canadian Borrower shall be due and
payable in full on the termination date, together with all accrued and unpaid interest thereon.
Each Canadian Borrower shall agree to pay a commitment fee on its unused Canadian Line of Credit
Commitment in an amount to be determined by the Sponsor but in any event not to exceed 1.00% per
annum, such commitment fee to be paid quarterly, in arrears.

(d) Authorization of US Revolving Commitment and US Term Loan Commitment; Loan Terms.

(i) Within the limits of the Facility Commitment and in accordance with the
procedures set forth in this Agreement and the Servicing Agreement, the Sponsor may
authorize the Servicer to establish a US Revolving Commitment and/or a US Term Loan
Commitment in favor of a US Franchisee who meets the credit criteria established by
the Sponsor.

(ii) The amount of each US Revolving Commitment shall be determined by the
Sponsor, but shall not be less than $100,000. Pursuant to the US Revolving
Commitment, the Servicer shall agree to make Advances in US Dollars to the US
Borrower thereunder. Each US Revolving Loan shall bear interest at the Borrower
Rate designated by Sponsor in the applicable Funding Approval Notice, and interest
shall be payable on each Borrower Payment Date and on the Maturity Date of such US
Revolving

 

26

 

Loan when all principal and interest shall be due and payable in full.
Each US Revolving Loan may be prepaid in full or in part on any Business Day,
without premium or penalty. The Loan Term of each US Revolving Loan shall not
exceed four years. The proceeds of each Advance made pursuant to the US Revolving
Commitment shall be used for general corporate purposes. Each US Borrower with a US
Revolving Commitment shall agree to pay a commitment fee on the unused US Revolving
Commitment in an amount to be determined by the Sponsor but in any event not to
exceed 1.00% per annum, such commitment fee to be paid quarterly, in arrears. At no
time, except as otherwise provided in the form of Loan Agreement, shall the
aggregate outstanding principal amount of any and all US Revolving Loans and US Term
Loans made to any US Borrower exceed the Franchisee Borrowing Base of such US
Borrower as in effect at such time.

(iii) The amount of each US Term Loan Commitment shall be determined by the
Sponsor, but shall not be less than $100,000. Pursuant to the US Term Loan
Commitment, the Servicer shall agree to make US Term Loans to the US Borrower
thereunder. Each US Term Loan shall bear interest at the Borrower Rate designated
by Sponsor in the applicable Funding Approval Notice, and interest shall be payable
on each Borrower Payment Date and on the Maturity Date of such US Term Loan.
Principal on each US Term Loan shall be payable on each Borrower Payment Date and
shall be amortized over a period of no more than 7 years with the balance of all
outstanding principal due and payable in full on the Maturity Date with respect to
such US Term Loan; provided that the Sponsor shall have the option of allowing an
interest-only payment schedule for up to the first six (6) months of such Loan’s
term. Each US Term Loan may be prepaid in full or in part on any Business Day,
without premium or penalty. The Loan Term of each US Term Loan shall not exceed
four years. The proceeds of each US Term Loan shall be used for general corporate
purposes.

(e) Authorization of Canadian Term Loan Commitment; Loan Terms.

(i) Within the limits of the Facility Commitment and the Canadian Subfacility
Amount and in accordance with the procedures set forth in this Agreement and the
Servicing Agreement, the Sponsor may authorize the Servicer to establish a Canadian
Term Loan Commitment in favor of a Canadian Franchisee who meets the credit criteria
established by the Sponsor.

(ii) The amount of each Canadian Term Loan Commitment shall be determined by
the Sponsor, but shall not be less than Cdn$100,000. Pursuant to the Canadian Term
Loan Commitment, the Servicer shall agree to make Canadian Term Loans to the
Canadian Borrower thereunder. Each Canadian Term Loan shall bear interest at the
Borrower Rate designated by Sponsor in the applicable Funding Approval Notice, and
interest shall be payable on each Canadian Borrower Payment Date and on the Maturity
Date of such Canadian Term Loan. Principal on each Canadian Term Loan
shall be payable on each Canadian Borrower Payment Date and shall be amortized over
a period of no more than 7 years with the balance of all outstanding principal due
and payable in full on the Maturity Date with respect to such Canadian Term Loan;
provided that the Sponsor shall have the option of allowing an interest-only payment
schedule for up to the first six (6) months of such Loan’s term. Each Canadian Term
Loan may be prepaid in full or in part only on a Canadian Borrower Payment Date for
such Canadian

 

27

 

Term Loan (and not on other days), without premium or penalty. The
Loan Term of each Canadian Term Loan shall not exceed two years.

(f) Conditions to Obligation of Servicer to Establish Loan Commitments. Servicer’s
obligation to establish each Loan Commitment under the Operative Documents is subject to the
fulfillment of the following conditions as of the Closing Date of such Loan:

(i) this Agreement and each of the other Operative Documents shall be in full force and
effect;

(ii) the representations and warranties of the Sponsor contained in Article V
shall be true and correct in all material respects with the same effect as though such
representations and warranties had been made on the Closing Date of such Loan;

(iii) the Servicer shall have received from the Sponsor a Funding Approval Notice
authorizing such Loan Commitment and a Store Opening Information Sheet;

(iv) all conditions precedent to the Loan Commitment specified in the Servicing
Agreement, together with such additional conditions precedent as may, at Sponsor’s election,
be included in the applicable Funding Approval Notice, shall have been completed to the
Servicer’s reasonable satisfaction; and

(v) no Credit Event, Unmatured Credit Event, Change of Control or Wind-Down Event shall
have occurred and be continuing.

(g) In addition to other conditions precedent herein set forth, if any Participant is a
Defaulting Participant, the Servicer will not be required to establish any new Loan Commitment or
increase any existing Loan Commitments, unless it is satisfied that 100% of the Participant’s
Interest of such Defaulting Participant has been fully Cash Collateralized or the risk of such
Defaulting Participant is otherwise fully eliminated by any combination satisfactory to the
Servicer of the actions required in Section 2.17.

Section 2.2. Conveyance of Participant’s Interest.

(a) The Servicer hereby sells, assigns, transfers and conveys to each of the Participants,
without recourse or warranty, and each Participant hereby purchases from the Servicer, an undivided
percentage ownership interest (which percentage shall be equal to each Participant’s Pro Rata
Share) in (i) the Facility Commitment, (ii) the Loan Commitments, including, without limitation,
the Existing Loan Commitments, (iii) the Loans, including, without limitation, the Existing Loans,
(iv) the Collateral, (v) all rights against any guarantor of any Loan, including the Sponsor, (vi)
the Loan Documents, (vii) all rights pursuant to the Guaranty Agreement and (viii) all right,
title and interest to
any payment or right to receive payment with respect to the foregoing (collectively, the
“Participant’s Interest”). Notwithstanding the foregoing, each Participant’s right to receive
payments of interest, commitments fees or other fees with respect to the Facility Commitment, the
Loan Commitments and the Loans shall not exceed the amounts which such Participant is entitled to
receive pursuant to the terms of this Agreement.

 

28

 

(b) In consideration of the entry by each Participant into this Agreement and the obligation
of each Participant hereunder, the Servicer shall issue to each Participant on the Effective Date,
a Participation Certificate. Each Participation Certificate shall be in an amount equal to the
relevant Participant’s Participating Commitment Amount, and the Funded Participation outstanding
thereunder shall bear interest as hereinafter set forth and shall be payable as hereinafter set
forth.

(c) In accordance with the terms and conditions hereof, and in consideration of the sale of
the Participant’s Interest to such Participant, each Participant severally agrees from time to
time, during the period commencing on the Effective Date and ending on the Final Termination Date,
to fund in US Dollars its Participant’s Interest in outstanding US Loans made by the Servicer to
the US Borrowers in accordance with the terms hereof and to fund in Canadian Dollars its
Participant’s Interest in outstanding Canadian Loans made by the Servicer to the Canadian Borrowers
in accordance with the terms hereof, so long as (x) the US Dollar Equivalent of its Funded
Participation does not exceed its Participating Commitment and (y) its Funded Participation with
respect to Canadian Loans does not exceed its Pro Rata Share of the Canadian Subfacility Amount.

Section 2.3. Funding of Advances; Swing Line; Funding of Participant’s Interest in
Loans.

(a) Funding of Advances. The Servicer shall fund Advances requested by the Borrowers
in accordance with the terms of the applicable Loan Documents and the Servicing Agreement. All
advances to Canadian Borrowers shall be made in Canadian Dollars and all Advances to US Borrowers
shall be made in US Dollars. On the date of any such funding, the Servicer shall elect whether or
not to require the Participants to fund their respective Pro Rata Share of the Advances to be made
on such date. All fundings by the Participants with respect to Canadian Loans shall be made in
Canadian Dollars, and all fundings by the Participants with respect to US Loans shall be made in
US Dollars. In the event that the Servicer elects not to require the Participants to fund their
Pro Rata Share of the Advances to be made on such date, the Servicer shall make such Advances
(each, a “Swing Line Advance”) to the Borrowers for the account of the Servicer; provided
that the US Dollar Equivalent of the aggregate amount of Swing Line Advances outstanding on
any date shall not exceed $25,000,000. If (i) any Credit Event, Change of Control or Wind-Down
Event shall have occurred, (ii) after giving effect to any requested Advance, the US Dollar
Equivalent of the aggregate Swing Line Advances outstanding hereunder would exceed $25,000,000, or
(iii) the Servicer otherwise determines in its sole discretion to request a Participant Funding
hereunder, then the Servicer shall notify the Participants pursuant to subsection (b) requesting a
Participant Funding.

(b) Notification of Participant Funding. In the event that the Servicer desires that
the Participants fund their respective Pro Rata Shares of Advances or Loans made or outstanding
pursuant to the Loan Documents, the Servicer shall deliver written or telecopy notice to the
Participants (or telephonic notice promptly confirmed in writing or by telecopy) (a “Participant
Funding Request”) by
no later than 10:00 a.m. (Atlanta, Georgia time) on the date which is the requested date of
the Participant Funding which shall specify (x) the date of the Participant Funding, which shall be
a Business Day, (y) each Participant’s Pro Rata Share of the Advances or Loans outstanding to be
funded in connection with such Participant Funding and (z) the portion of such funding to be made
in US Dollars and the portion of such funding to be made in Canadian Dollars.

 

29

 

(c) Each Participant shall make available its Pro Rata Share of the requested Participant
Funding in the applicable currency on the proposed date thereof by wire transfer of immediately
available funds to the Servicer in Atlanta, Georgia by not later than 2:00 P.M. (Atlanta, Georgia
time). Unless the Servicer shall have received notice from a Participant prior to the date of any
Participant Funding that such Participant will not make available to the Servicer such
Participant’s Pro Rata Share of such Participant Funding, the Servicer may assume that the
Participant has made such portion available to the Servicer on the date of such Participant Funding
in accordance with this subsection (c) and the Servicer may, in reliance on such assumption, make
available to the Borrowers a corresponding amount or credit the same to Swing Line Advances. If
and to the extent that such Participant shall not have made such portion available to the Servicer,
such Participant and the Sponsor shall severally agree to repay the Servicer forthwith (on demand
in the case of the Participant and within three (3) days of such demand in the case of the
Sponsor), without duplication, such amount with interest at the Federal Funds Rate plus 2% per
annum and, until such time as such Participant has repaid to the Servicer such amount. If such
Participant shall repay to the Servicer such amount, then such amount shall constitute part of such
Participant’s Funded Participation.

(d) Each Participant’s obligations to fund its Pro Rata Share of any requested Participant
Funding shall be absolute and unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any setoff, counterclaim, recoupment, defense, or other right
which such Participant may have against the Servicer, the Sponsor, any Borrower or any other Person
for any reason whatsoever, (ii) the occurrence of any Credit Event, Unmatured Credit Event, Change
of Control or Wind-Down Event, (iii) the occurrence of any Loan Default or any other “event of
default” under any Loan Documents, (iv) any adverse change in the condition (financial or
otherwise) of the Sponsor, any other Credit Party or any Borrower, (v) the acceleration or maturity
of any Loan or the Sponsor’s obligations hereunder or the termination of the Facility Commitment,
Loan Commitments or the Participating Commitments after the making of any Swing Line Advance, (vi)
any breach of this Agreement by the Sponsor or any other Participant, or (vii) any other
circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.

(e) Notwithstanding the foregoing provisions of this Section 2.3, no Participant shall
be required to fund its Pro Rata Share of any requested Participant Funding for purposes of
refunding a Swing Line Advance pursuant to subsection (d) above if a Loan Default with respect to
the relevant Loan has occurred and is continuing and, prior to the making by the Servicer of such
Swing Line Advance, the Servicer had received written notice from Sponsor, the relevant Borrower or
any Participant specifying that such Loan Default had occurred and was continuing (and identifying
the same as a Loan Default, as the case may be) which has not been cured or waived;
provided that, in the case of a Loan Default arising from an Unmatured Credit Event or
Credit Event where the Participants are not pursuing remedies, the Participants will be obligated
to fund their respective Pro Rata Shares of Swing Line Advances.

Section 2.4. Participant Commitment Fees.

(a) Each Participant will receive, from amounts paid by the Borrowers under the Loan Documents
and the Sponsor under the Operative Documents, a commitment fee (the “Participant Commitment Fee”)
equal to the average daily amount of its Participant’s Unused Commitment for the period commencing
on the Effective Date and ending on the Final Termination Date, or such earlier date as the
Participating Commitment shall expire or terminate, multiplied by the Applicable Percentage per
annum, such Participant Commitment Fee to be payable in arrears on each Participant Quarterly
Payment

 

30

 

Date, commencing on June 30, 2010, for the preceding Payment Period, calculated on the
basis of a 360-day year and the actual number of days elapsed.

(b) All Commitment Fees shall be paid on the dates due, in immediately available funds, to the
Participants by the Servicer from amounts received from the Borrowers and Sponsor. All Participant
Commitment Fees shall be paid in US Dollars.

(c) In the event that the US Dollar Equivalent of the commitment fees received by the Servicer
from the Borrowers and the Sponsor is not sufficient on any Participant Quarterly Payment Date to
pay the Participant Commitment Fees to the Participants required pursuant hereto, the Sponsor
shall, upon demand of the Servicer, immediately fund such difference in US Dollars to the Servicer
(with such payment allocated to specific Loan Payment Defaults as agreed by Sponsor and Servicer,
if applicable) and either, at the election of the Sponsor, (x) the Sponsor shall be reimbursed by
the Servicer upon receipt of such amount from a Borrower, (y) the Loan Indebtedness shall be
deemed to be reduced by such amount for purposes of a repayment or purchase of such Defaulted Loan
by Sponsor in accordance with the terms of this Agreement or (z) if elected by Sponsor and if such
amount is sufficient to cure any Loan Payment Default such amount shall be deemed to have satisfied
Sponsor’s obligation to cure such Loan Payment Default hereunder.

(d) Anything herein to the contrary notwithstanding, during such period as a Participant is a
Defaulting Participant, such Defaulting Participant will not be entitled to Participating
Commitment Fees accruing with respect to its Participant Commitment during such period pursuant to
Section 2.4(a) (without prejudice to the rights of the Participants other than Defaulting
Participants in respect of such fees).

Section 2.5. Interest on Funded Participations.

(a) Interest Rate. Subject to the provisions of Section 2.6, each
Participant’s US Funded Participation shall bear interest (computed on the basis of the actual
number of days elapsed over a year of 360 days) at a rate per annum equal to the Adjusted US LIBO
Rate for the Payment Period in which such US Funded Participation is outstanding (with the Adjusted
US LIBO Rate applicable to all amounts outstanding during any Payment Period being automatically
reset on the first day of each Payment Period regardless of the date of any Participant Funding
hereunder) plus the Applicable Margin then in effect. Subject to the provisions of Section
2.6, each Participant’s Canadian Funded Participation shall bear interest (computed on the
basis of the actual number of days elapsed over a year of 360 days) at a rate per annum equal to
the Adjusted Canadian LIBO Rate for the Payment Period in which Canadian Funded Participation is
outstanding (with the Adjusted Canadian LIBO Rate applicable to all amounts outstanding during any
Payment Period being automatically reset on the first day of each Payment Period regardless of the
date of any Participant Funding hereunder) plus the Applicable Margin then in effect.

(b) Payment of Interest. Interest on each Participant’s US Funded Participation shall
be payable by the Servicer to the Participants in US Dollars on each Participant Monthly Payment
Date from interest payments received on the US Loans on such Participant Monthly Payment Date for
the preceding Payment Period and from other amounts received from the Sponsor. Interest on each
Participant’s Canadian Funded Participation shall be payable by the Servicer to the Participants in
Canadian Dollars on each Participant Canadian Monthly Payment Date from interest payments received

 

31

 

on the Canadian Loans on such Participant Canadian Monthly Payment Date for the preceding Payment
Period and from other amounts received from the Sponsor.

(c) Sponsor’s Obligation. In the event that the interest received by the Servicer
from the US Borrowers since the immediately prior Participant Monthly Payment Date is not
sufficient to pay the interest to the Participants on the next Participant Monthly Payment Date as
required pursuant hereto in the applicable currency or in the event that the interest received by
the Servicer from the Canadian Borrowers since the immediately prior Participant Canadian Monthly
Payment Date is not sufficient to pay the interest to the Participants on the next Participant
Canadian Monthly Payment Date as required pursuant hereto in the applicable currency, the Sponsor
shall, upon demand of the Servicer, immediately fund such difference to the Servicer in the
applicable currency (with such payment allocated to specific Loan Payment Defaults as agreed by
Sponsor and Servicer) and if such shortfall results from Loan Payment Defaults rather than interest
rate variances, either, at the election of the Sponsor, (x) the Sponsor shall be reimbursed by the
Servicer upon receipt of such amount from the applicable Borrower, (y) the Loan Indebtedness of
such Borrower shall be deemed to be reduced by such amount for purposes of a repayment or purchase
of such Defaulted Loan by Sponsor in accordance with the terms of this Agreement or (z) if elected
by Sponsor and if such amount is sufficient to cure any Loan Payment Default, such amount shall be
deemed to have satisfied Sponsor’s obligation to cure such Loan Payment Default hereunder.

(d) LIBOR Not Determinable or Illegal. In the event that LIBOR is not determinable by
the Servicer or it becomes impossible or illegal for the Servicer to calculate interest on the US
Funded Participations based upon LIBOR, the parties agree that in such event that interest on the
US Funded Participations shall bear interest at a rate per annum equal to the Prime Rate plus a
mutually agreed upon spread based upon current market conditions. In the event that Canadian
LIBOR is not determinable by the Servicer or it becomes impossible or illegal for the Servicer to
calculate interest on the Canadian Funded Participations based upon Canadian LIBOR, the parties
agree that in such event that interest on the Canadian Funded Participations shall bear interest at
a rate per annum equal to the Canadian Prime Rate plus a mutually agreed upon spread based upon
current market conditions.

Section 2.6. Default Interest. If any amount payable to the Servicer or the
Participants by the Sponsor under the Operative Documents is not paid on the date due hereunder,
such amount shall bear interest (to the extent permitted by law) for each day from such date up to
(but not including) the date of actual payment (after as well as before judgment) at a rate per
annum (computed on the basis of the actual number of days elapsed over a year of 360 days) equal to
the rate set forth in Section 2.5 plus an additional two percent (2.0%) per annum.

Section 2.7. Voluntary Reduction of the Unutilized Commitment. Upon at least three
(3) Business Days’ prior telephonic notice (promptly confirmed in writing) to the Servicer, Sponsor
shall have the right, without premium or penalty, to terminate the Facility
Commitment, in part or in whole, provided that (i) any such termination shall apply to
permanently reduce the Facility Commitment, (ii) any such termination shall apply to
proportionately and permanently reduce the Participating Commitments of each of the Participants,
(iii) any partial termination pursuant to this Section 2.7 shall be in an amount of at
least $5,000,000 and integral multiples of $1,000,000, (iv) the Facility Commitment may not be
reduced if, as a result thereof, the Facility Commitment Amount would be less than the US Dollar
Equivalent of all outstanding Loan Commitments, and (v) to the extent that Facility Commitment is
reduced to a level that is less than the US Dollar Equivalent of the Canadian Subfacility Amount,
the

 

32

 

Canadian Subfacility Amount shall be reduced to the Canadian Dollar Equivalent of the Facility
Commitment.

Section 2.8. Extension of Commitments.

(a) The Sponsor may, by written notice to the Servicer (which shall promptly deliver a copy to
each of the Participants), given not more than sixty (60) days prior to any anniversary of the date
of this Agreement while the Facility Commitment is effect, request that the Participants extend the
then scheduled Facility Commitment Termination Date (the “Existing Date”) for an additional 364-day
period. Each Participant shall, by notice to the Sponsor and the Servicer given within fifteen
(15) Business Days after receipt of such request, advise the Sponsor and the Servicer whether or
not such Participant consents to the extension request (and any Participant which does not respond
during such 15-day period shall be deemed to have advised the Sponsor and the Servicer that it will
not agree to such extension).

(b) In the event that, on the 15th Business Day after receipt of the notice delivered pursuant
to subsection (a) above, all of the Participants shall have agreed to extend their respective
Participating Commitments, the Facility Commitment Termination Date shall be deemed to have been
extended, effective as of the Existing Date, to the date which is 364 days thereafter.

(c) In the event that, on the 15th Business Day after receipt of the notice delivered pursuant
to subsection (a) above, all of the Participants shall not have agreed to extend their respective
Participating Commitments, the Sponsor and the Servicer shall notify the consenting Participants
(“Consenting Participants”) of the aggregate Participating Commitment Amounts of the non-extending
Participants (“Non-Consenting Participants”) and such Consenting Participants shall, by notice to
the Sponsor and the Servicer given within ten (10) Business Days after receipt of such notice,
advise the Servicer and Sponsor whether or not such Participant wishes to purchase all or a
portion of the Participating Commitments of the Non-Consenting Participants (and any Participant
which does not respond during such 10-Business Day period shall be deemed to have rejected such
offer). In the event that more than one Consenting Participant agrees to purchase all or a portion
of such Participating Commitments, the Sponsor and the Servicer shall allocate such Participating
Commitments among such Consenting Participants so as to preserve, to the extent possible, the
relative pro rata shares of the Consenting Participants of the Participating Commitments prior to
such extension request. If Consenting Participants do not elect to assume all of the Participating
Commitments of the Non-Consenting Participants, the Sponsor shall have the right, subject to the
terms and conditions of Section 15.6, to arrange for one or more financial institutions
(any such financial institution being called a “New Participant”) to purchase the Participating
Commitment of any Non-Consenting Participant. Each Non-Consenting Participant shall assign its
Participating Commitment and its Participant’s Interest outstanding hereunder to the Consenting
Participant or New Participant purchasing such Participating Commitment in
accordance with Section 15.6, in return for payment in full of all principal, interest
and other amounts owing to such Non-Consenting Participant hereunder, on or before the Existing
Date and, as of the effective date of such assignment, shall no longer be a party hereto, provided
that each New Participant shall be subject to the approval of the Servicer (which approval shall
not be unreasonably withheld). If (and only if) Participants (including New Participants) holding
Participating Commitments representing at least an amount equal to the greater of (x) the sum of
the US Dollar Equivalent of all outstanding Loan Commitments and (y) 66 2/3 % of the aggregate
Participating Commitments on the date of such extension request shall have agreed to such extension
by the Existing Date (the “Continuing Participants”), then (i) the Facility Commitment Termination
Date shall be extended for an additional 364-day period and (ii) the

 

33

 

Participating Commitment of
any Non-Consenting Participant which has not been assigned to a Consenting Participant or a New
Participant shall terminate (with the result that the amount of the Facility Commitment shall be
decreased proportionately by the amount of such Participating Commitment), and all amounts owing to
such Non-Consenting Participant, together with all interest accrued thereon and all other amounts
owed to such Non-Consenting Participant hereunder, shall be due and payable to such Non-Consenting
Participant on the Existing Date applicable to such Participant without giving effect to any
extension of the Facility Commitment Termination Date.

Section 2.9. Wind-Down Events. In the event a Wind Down Event occurs, then (x) the
Sponsor shall not have the right to request that any further Loan Commitments be established, and
(y) the Servicer shall, within a reasonable period of time and in any event no later than thirty
(30) days after the Facility Commitment Termination Date, give notice to each of the applicable
Borrowers terminating the Line of Credit Commitments as of the date which is ninety (90) days after
delivery of such notice, subject, in each case, to the right of the Borrowers to term out the
amounts outstanding under their Line of Credit Commitments as set forth in Section 2.1(b)
and Section 2.1(c), as applicable; provided, however, that the occurrence
of such Wind-Down Event shall not affect the obligation of (i) the Servicer to make Advances
pursuant to existing Line of Credit Commitments, except to the extent that the Line of Credit
Commitments are terminated pursuant to clause (y) above, (ii) the Servicer to make Advances
pursuant to existing US Revolving Commitment, (iii) the Participants to fund their Participant’s
Interest as provided herein, except to the extent that the Line of Credit Commitments are
terminated pursuant to clause (y) above or (iv) the Credit Parties under the Operative Documents.

Section 2.10. Reserve Requirements; Change in Circumstances; Change in Lending
Offices.

(a) Notwithstanding any other provision herein, if, by reason of (i) after the date hereof,
the introduction of or any change (including any change by way of imposition or increase of reserve
requirements) in or in the interpretation of any law or regulation, or (ii) the compliance with any
guideline or request from any central bank or other governmental authority or quasi-governmental
authority exercising control over banks or financial institutions generally (whether or not having
the force of law), any reserve (including any imposed by the Federal Reserve Board), special
deposit or similar requirement (including a reserve, special deposit or similar requirement that
takes the form of a tax) against assets of, deposits with or for the account of, or credit extended
by, any Participant’s office through which it funds its obligations hereunder shall be imposed or
deemed applicable or any other condition affecting its obligation to make or maintain its Funded
Participation at a rate based upon the Adjusted US LIBO Rate or Adjusted Canadian LIBO Rate shall
be imposed on any Participant or its
office through which it funds its obligations hereunder or the interbank Eurodollar market;
and as a result thereof there shall be any increase in the cost to such Participant of agreeing to
make or making, funding or maintaining funds its obligations hereunder (except to the extent
already included in the determination of the applicable Adjusted US LIBO Rate or Adjusted Canadian
LIBO Rate), or there shall be a reduction in the amount received or receivable by that Participant
or its office through which it funds its obligations hereunder, then the Sponsor shall from time to
time, upon written notice from and demand by the Participant (with a copy of such notice and demand
to the Servicer), pay to the Servicer for the account of that Participant within five Business Days
after the date specified in such notice and demand, additional amounts sufficient to indemnify that
Participant against such increased cost. A certificate as to the amount of such increased cost
submitted to the Sponsor and the Servicer by that Participant, shall, except for manifest error, be
final, conclusive and binding for all purposes.

 

34

 

(b) If while the Facility Commitment or any Loan Commitments are outstanding, any Participant
(including any the Servicer) determines that the adoption of any law, rule or regulation regarding
capital adequacy or capital maintenance, or any change in any of the foregoing or in the
interpretation or administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by any Participant
(or any lending office of such Participant) or any Participant’s holding company with any request
or directive regarding capital adequacy or capital maintenance (whether or not having the force of
law) of any such authority, central bank or comparable agency, has or would have the effect of
reducing the rate of return on such Participant’s capital or on the capital of such Participant’s
holding company, if any, as a consequence of this Agreement, the Loan Documents or the purchases
made by such Participant pursuant hereto to a level below that which such Participant or such
Participant’s holding company could have achieved but for such adoption, change or compliance
(taking into consideration such Participant’s policies and the policies of such Participant’s
holding company with respect to capital adequacy) by an amount reasonably deemed by such
Participant to be material, then from time to time, within 15 days after written demand by such
Participant, the Sponsor pay to such Participant such additional amount or amounts as will
compensate such Participant or such Participant’s holding company for such reduction. A
certificate as to the amount of any such additional amount or amounts, submitted to the Sponsor and
the Servicer by such Participant, shall, except for manifest error, be final, conclusive and
binding for all purposes.

(c) Each Participant agrees that, if requested by the Sponsor, it will use reasonable efforts
(subject to overall policy considerations of such Participant) to designate an alternate lending
office with respect to any of its Funded Participation affected by the matters or circumstances
described above to reduce the liability of the Sponsor or avoid the results provided thereunder, so
long as such designation is not disadvantageous to such Participant as determined by such
Participant, which determination if made in good faith, shall be conclusive and binding on all
parties hereto. Nothing in this Section 2.10(c) shall affect or postpone any of the
obligations of the Sponsor or any right of any Participant provided hereunder.

Section 2.11. Pro Rata Treatment. Subject to the application of payments pursuant to
Article III and except as specifically provided therein, each payment of principal of any
Funded Participation, each payment of interest with respect to the Funded Participation, each
payment of the Participant Commitment Fees and each reduction of the Participating Commitments
shall be allocated pro rata among the Participants in accordance with their respective applicable
Pro Rata Shares. Each Participant agrees that in computing its Pro Rata Share
of any Participant Funding hereunder, the Servicer may, in its discretion, round each
Participant’s percentage of such Participant Funding Request to the next higher or lower whole
dollar amount.

Section 2.12. Payments.

(a) The Sponsor shall make each payment required to be made by Sponsor hereunder and under any
other Operative Document to any Participant or the Servicer not later than 1:00 p.m. (Atlanta,
Georgia time), on the date when due in the Contractual Currency (as defined below) to the Servicer
at its offices in Atlanta, Georgia in immediately available funds.

(b) Whenever any payment hereunder or under any other Operative Document shall become due, or
otherwise would occur, on a day that is not a Business Day, such payment may be made

 

35

 

on the next
succeeding Business Day, and such extension of time shall in such case be included in the
computation of interest or Participant Commitment Fees, if applicable.

(c) Notwithstanding anything herein to the contrary, any amount paid by any Borrower or the
Sponsor for the account of a Defaulting Participant under this Agreement (whether on account of
principal, interest, fees, indemnity payments or other amounts) will be retained by the Servicer in
a segregated non-interest bearing account until the Facility Commitment Termination Date at which
time the funds in such account will be applied by the Servicer, to the fullest extent permitted by
law, in the following order of priority: first to the payment of any amounts owing by such
Defaulting Participant to the Servicer under this Agreement, including, without limitation, amounts
owing to the Servicer in its capacity as Swing Line lender hereunder, second, to the
payment of interest due and payable to the Participants hereunder other than Defaulting
Participants, ratably among them in accordance with the amounts of such interest then due and
payable to them, third to the payment of fees then due and payable to the Participants hereunder
other than Defaulting Participants hereunder, ratably among them in accordance with the amounts of
such fees then due and payable to them, fourth to the ratable payment of other amounts then
due and payable to the Participants hereunder other than Defaulting Participants, and fifth
to pay amounts owing under this Agreement to the Defaulting Participants or as a court of competent
jurisdiction may otherwise direct.

Section 2.13. Sharing of Setoffs. Each Participant agrees that if it shall, in
accordance with applicable law, through the exercise of a right of banker’s lien, setoff or
counterclaim against the Sponsor or any Borrower, or pursuant to a secured claim under Section 506
or Title 11 of the United States Code or other security or interest arising from, or in lieu of,
such secured claim, received by the Participant under any applicable bankruptcy, insolvency or
other similar law or otherwise, or by any other means, obtain payment (voluntary or involuntary) in
respect of any Funded Participation under this Agreement (other than pursuant to Section
2.12(c)) as a result of which the unpaid principal portion of its Funded Participation shall be
proportionately less than the unpaid principal portion of the Funded Participation of any other
Participant, it shall be deemed simultaneously to have purchased from such other Participant at
face value, and shall promptly pay to such other Participant the purchase price for, a
participation in the Funded Participation of such other Participant, so that the aggregate unpaid
principal amount of the Funded Participation and participations in Funded Participations held by
each Participant shall be in the same proportion to the aggregate unpaid principal amount of all
Funded Participations then outstanding as the principal amount of its Purchases prior to such
exercise of banker’s lien, setoff or counterclaim or other event was to the principal amount of all
Funded Participations outstanding prior to such exercise of banker’s lien, setoff or
counterclaim or other event; provided, however, that, if any such purchase or
purchases or adjustments shall be made pursuant to this Section 2.13 and the payment giving
rise thereto shall thereafter be recovered, such purchase or purchases or adjustments shall be
rescinded to the extent of such recovery and the purchase price or prices or adjustment restored
without interest. The Servicer and each Participant hereby further agrees that any set-off amount
received with respect to any Borrower, the Sponsor or any Guarantor shall first be applied to
amounts outstanding under the Franchisee Loan Program prior to application to any other obligations
of any such Person to the Servicer or such Participant. The Sponsor expressly consents to the
foregoing arrangements and agrees, to the extent permitted by applicable law, that any Participant
holding a Funded Participation or a participation in a Funded Participation deemed to have been so
purchased may exercise any and all rights of banker’s lien, setoff or counterclaim with respect to
any and all moneys owing by the Sponsor to such Participant by reason thereof.

Section 2.14. Canadian Dollar Provisions.

 

36

 

(a) If any payment due hereunder or under any other Operative Document is not made in the
currency due under this Agreement (the “Contractual Currency”) or if any court or tribunal shall
render a judgment or order for the payment of amounts due hereunder or under the Operative
Documents and such judgment is expressed in a currency other than the Contractual Currency, the
Sponsor shall indemnify and hold the Servicer and each Participant harmless against any deficiency
incurred by the Servicer or such Participant with respect to the amount received by the Servicer or
such Participant to the extent the rate of exchange at which the Contractual Currency is
convertible into the currency actually received or the currency in which the judgment is expressed
(the “Received Currency”) is not the reciprocal of the rate of exchange at which the Servicer would
be able to purchase the Contractual Currency with the Received Currency, in each case on the
Business Day following receipt of the Received Currency in accordance with normal banking
procedures. If the court or tribunal has fixed the date on which the rate of exchange is
determined for the conversion of the judgment currency into the Contractual Currency (the
“Conversion Date”) and if there is a change in the rate of exchange prevailing between the
Conversion Date and the date of receipt by the Servicer and the relevant Participant, then the
Sponsor will, notwithstanding such judgment or order, pay such additional amount (if any) as may be
necessary to ensure that the amount paid in the Received Currency when converted at the rate of
exchange prevailing on the date of receipt will produce the amount then due to the Servicer and the
relevant Participant from the Sponsor hereunder in the Contractual Currency.

(b) If a Credit Event of the type described in Sections 9.7, 9.8 or
9.9 occurs: (i) any amounts owing to the Servicer and the Participants under the Operative
Documents, (ii) any damages owing to the Servicer or the Participants, as the case may be, in
respect of a breach of any of the terms of the Operative Documents, or (iii) any judgment or order
rendered in respect of such amounts or damages, the Sponsor shall indemnify and hold the Servicer
and the Participants harmless against any deficiency with respect to the Contractual Currency in
the amounts received by the Servicer and the Participants with respect to any of the amounts
described in clause (i), (ii) or (iii) above arising or resulting from any variation as between:
(i) the rate of exchange at which the Contractual Currency is converted into another currency (the
“Liquidation Currency”) for purposes of such winding-up, liquidation, dissolution or bankruptcy
with regard to the amount in the Contractual Currency due or contingently due under the Operative
Documents or under any judgment or order to which the relevant obligations under the Operative
Documents shall have been merged and (ii) the rate of exchange at which the Servicer would, in
accordance with normal banking procedures, be able to purchase the Contractual Currency with the
Liquidation Currency at the earlier of (A) the date of payment of such amounts or damages and
(B) the final date or dates for the filing of proofs of a claim in a winding-up, liquidation,
dissolution or bankruptcy. As used in the preceding sentence, the “final date” or dates for the
filing of proofs of a claim in a winding-up, liquidation, dissolution or bankruptcy shall be the
date fixed by the liquidator under the applicable law as being the last practicable date as of
which the liabilities of the Borrowers or the Sponsor, as the case may be, may be ascertained for
such winding-up, liquidation, dissolution or bankruptcy before payment by the liquidator or other
appropriate Person in respect thereof.

(c) Exchange Rates. Not later than 2:00 p.m. (Atlanta, Georgia time) on each date of
determination (which date of determination shall be at least quarterly and frequently as the
Servicer shall require if a Credit Event has occurred and is continuing and after a Wind Down
Event), the Servicer shall (A) determine the Exchange Rate as of such date of determination with
respect to Canadian Dollars, and (B) give notice thereof to the Sponsor and Participants. The
Exchange Rate as so determined shall become effective on the first Business Day immediately
following the relevant date of determination (a “Reset Date”), shall remain effective until the
next succeeding Reset Date, and shall for all purposes of

 

37

 

this Agreement, be the Exchange Rate
employed in determining the US Dollar Equivalent of any amounts in Canadian Dollars.

Section 2.15.  Excess Loan Commitments Resulting From Exchange Rate Changes. If on any
Reset Date, after giving effect to any changes in Exchange Rate implemented pursuant to Section
2.14, the US Dollar Equivalent of all Loan Commitments exceeds the Maximum Commitment Amount,
the Sponsor shall promptly and, in any case, within ten (l0) days thereafter, either (i) purchase
Loans and related Loan Commitments from the Servicer in an amount sufficient to cause the US Dollar
Equivalent of all outstanding Loan Commitments not to exceed the Maximum Commitment Amount, or (ii)
to the extent that the US Dollar Equivalent of all Loan Commitments does not exceed the Maximum
Commitment Amount by more than $1,000,000, cause to be issued to the Servicer a letter of credit
(from an issuer and in form and substance reasonably satisfactory to the Servicer) in an amount
equal to or greater than the amount by which the US Dollar Equivalent of all Loan Commitments
exceeds the Maximum Commitment Amount.

Section 2.16. Interest Act. For the purposes of the Interest Act (Canada), any amount
of interest or fees calculated on the Facility Commitment or the Canadian Funded Participations
using 360, 365 or 366 days per year and expressed as an annual rate is equal to the said rate of
interest or fees multiplied by the actual number of days comprised within the calendar year,
divided by 360, 365 or 366, as the case may be. The parties agree that all interest with respect
to the Facility Commitment or the Canadian Funded Participations accruing under this Agreement will
be calculated using the nominal rate method and not the effective rate method, and that the deemed
re-investment principle shall not apply to such calculations. In addition, the parties acknowledge
that there is a material distinction between the nominal and effective rates of interest and that
they are capable of making the calculations necessary to compare such rates.

Section 2.17. Reallocation and Cash Collateralization of Defaulting Participant
Exposure.

(a) If
 a Participant becomes,
 and during the period it remains, a Defaulting Participant, the
following provisions shall apply, notwithstanding anything to the contrary in this Agreement:

(1) the Participant’s Interest of such Defaulting Participant in the unfunded portion
of outstanding Loan Commitments will, subject to the limitation in the first proviso below,
automatically be reallocated (effective on the day such Participant becomes a Defaulting
Participant) among the Non-Defaulting Participants pro rata in accordance
with their respective Participant’s Interest (calculated as if the Defaulting Participant’s
Participant’s Interest was reduced to zero and each Non-Defaulting Participant’s
Participant’s Interest had been increased proportionately); provided that (a) each
Non-Defaulting Participant’s total Participant’s Interest may not in any event exceed the
Participating Commitment of such Non-Defaulting Participant as in effect at the time of such
reallocation and (b) neither such reallocation nor any payment by a Non-Defaulting
Participant pursuant thereto will constitute a waiver or release of any claim the Servicer
or the Sponsor may have against such Defaulting Participant or cause such Defaulting
Participant to be a Non-Defaulting Participant; and

(2) to the extent that any portion (the “unreallocated portion”) of the Participant’s
Interest of such Defaulting Participant in the unfunded portion of outstanding Loan
Commitments cannot be reallocated pursuant to clause (1) for any reason, the Sponsor will,
not later than two (2) Business Days after demand by the Servicer, (a) Cash Collateralize
the obligations of

 

38

 

Defaulting Participant to the Servicer in respect of such unfunded
portion of outstanding Loan Commitments in full or (b) make other arrangements satisfactory
to the Servicer to protect them against the risk of non-payment by such Defaulting
Participant.

(b) If the Sponsor and the Servicer agree in writing in their discretion that any Defaulting
Participant has ceased to be a Defaulting Participant, the Servicer will so notify the parties
hereto, whereupon as of the effective date specified in such notice and subject to any conditions
set forth therein, the Participant’s Interest of the other Participants shall be readjusted to
reflect the inclusion of such Participant’s Participant Commitment, and such Participant will
purchase at par such portion of the Participant’s Interest of such other Participants in Loans
outstanding under Loan Commitments and/or make such other adjustments as the Servicer may determine
to be necessary to cause all Funded Participants in all outstanding Loans of the Participants to be
on a pro rata basis in accordance with their respective Participant’s Interests, whereupon such
Participant will cease to be a Defaulting Participant and will be a Non-Defaulting Participant (and
such Funded Participant of each Participant will automatically be adjusted on a prospective basis
to reflect the foregoing). If any cash collateral has been posted or other arrangement made
pursuant to Section 2.17(a)(2), the Servicer will promptly return such cash collateral to
the Sponsor or unwind such arrangement; provided that no adjustments will be made retroactively
with respect to fees accrued or payments made by or on behalf of the Sponsor while such Participant
was a Defaulting Participant; and provided, further, that except to the extent otherwise expressly
agreed by the affected parties, no change hereunder from Defaulting Participant to Non-Defaulting
Participant will constitute a waiver or release of any claim of any party hereunder arising from
such Participant’s having been a Defaulting Participant.

ARTICLE III

SERVICER’S SERVICING OBLIGATIONS; DISTRIBUTION OF PAYMENTS

Section 3.1.
 Servicer’s Obligations with Respect to Loans; Collateral; Non-Recourse.

(a) The Servicer shall, for itself and the benefit of all of the Participants and the Sponsor,
(i) document, close, manage, administer and collect the Loans in accordance with the terms of this
Agreement and the Servicing Agreement and exercise all discretionary powers involved in such
management, administration and collection and (ii) shall distribute the funds received with respect
to the Loans and from the Sponsor in accordance with the terms of this Agreement. The Servicer
agrees that it will exercise the same care in administering the Loans as it exercises with respect
to loans of similar size and type and in accordance with the terms of the Servicing Agreement and
Section 10.13 hereto.

(b) The forms of Loan Agreements, Canadian Security Agreement and Notes used by the Servicer
as documentation for each Loan on and after the Effective Date shall be substantially in the forms
attached hereto. The Sponsor shall have the right to direct the Servicer to make modifications to
such forms and amendments thereto from time but the Sponsor may not direct the Servicer to revise
or amend such forms so as to be inconsistent with the terms of Section 2.1(b), (c),
(d) and (e).

(c) Notwithstanding anything in this Agreement to the contrary, each of the Participants
acknowledges and agrees that the Servicer shall have no obligation to the Participants with respect
to the obtaining or retention of any guaranties required by the Sponsor (other than to distribute

 

39

 

any proceeds therefrom in accordance with the terms of this Article III). The Participants
acknowledge and agree that the Sponsor has the right to release or modify the terms of, or not
require, any Personal Guaranty or any Spousal Consent.

(d) In addition, each of the Participants acknowledges and agrees that the obligations of the
Servicer with respect to the Collateral shall be expressly limited to the filing of financing
statements (but not fixture filings) in the locations indicated in the applicable Funding Approval
Notice for each Borrower and filing continuation statements with respect thereto and taking
enforcement action in accordance with Section 10.13 hereto.

(e) Each of the Participants acknowledges and agrees that all payments made to the
Participants pursuant to this Agreement by the Servicer shall be made solely from amounts received
from the Sponsor in the applicable currency, the Borrowers and other obligors or Collateral under
the applicable Loan Documents and the Servicer shall have no personal liability for any amounts
payable to the Participants hereunder. Each of the Participants acknowledges and agrees that the
Servicer shall be relying solely upon the Sponsor for purposes of calculating and ensuring
compliance by Borrowers with the Franchisee Borrowing Base for each US Revolving Loan, US Term Loan
and Canadian Term Loan.

(f) Each of the Participants acknowledges and agrees that any payments of delinquent payment
fees received from the Borrowers pursuant to the Loan Agreements shall be for the sole account of
the Sponsor and that the Participants shall have no right to receive such payments unless a Credit
Event has occurred and is continuing; provided that, with respect to any payments received from a
Borrower, such payments shall be first applied to pay all accrued but unpaid interest and
principal and other fees due and owing from such Borrower before application of such payment to any
delinquent payment fees.

(g) Each Participant hereby acknowledges and agrees that the Servicer has no ability to halt
an ACH transfer upon the inputting of such transfer request by Sponsor from the Aaron’s Proprietary
System into the ACH system (other than the ability to retrieve ACH transfers which are sent to the
wrong party or otherwise manifestly erroneous as provided in the ACH Agreement with Sponsor), and
Sponsor hereby accepts full responsibility for any overadvance created by such inputting of
information and shall indemnify the Servicer and the Participants therefor as provided herein.

Section 3.2. Application of Payments.

(a) The Servicer and the Sponsor shall instruct each Borrower to make payments with respect to
Loans and the Loan Commitments directly to the Servicer, either by wire transfer, SWIFT transfer or
debit pursuant to an ACH Authorization or a PAD Authorization.

(b) On each Participant Quarterly Payment Date and each Participant Canadian Quarterly Payment
Date, all payments of commitment fees received by the Servicer from the Borrowers since the
immediately prior Participant Quarterly Payment Date or each Participant Canadian Quarterly Payment
Date (as applicable) and from the Sponsor pursuant to the Operative Documents and not previously
distributed by the Servicer, shall be applied to pay all accrued but unpaid Participant Commitment
Fees in the applicable currency pursuant to this Agreement, such payment to be distributed by the
Servicer to the Participants pro rata in accordance with Section 2.4, with any remainder to
be applied as set forth in the Servicing Agreement.

 

40

 

(c) On each Participant Monthly Payment Date and each Participant Canadian Monthly Payment
Date, all payments of interest received by the Servicer from the Borrowers since the immediately
prior Participant Monthly Payment Date or Participant Canadian Monthly Payment Date (as applicable)
and from the Sponsor pursuant to its guaranty contained herein with respect to the Loans and not
previously distributed by the Servicer, shall be applied to pay all accrued but unpaid interest on
the Funded Participation in the applicable currencies pursuant to this Agreement, then to pay all
accrued but unpaid Servicing Fees and then to pay the Sponsor’s Fee, in accordance with the terms
of the Servicing Agreement and Fee Letter and in the applicable currencies.

(d) On any Business Day on which the Servicer shall receive any payment in respect of the
principal amount of any Loan, whether from a Borrower, the Sponsor pursuant to its guaranty
contained herein, or any other obligor with respect thereto, the Servicer may elect, in its sole
discretion to (i) apply such principal payment to fund any requested Advances, (ii) apply such
amount to repay any outstanding Swing Line Advances, or (iii) to either (x) distribute such amount
to the Participants to reduce each Participant’s Funded Participation or (y) apply such amount to
SunTrust’s Funded Participation only (with the understanding that the Funded Participation of each
Participant shall not be deemed to have been repaid until such amount is actually received by such
Participant); provided that, in the event that the Servicer elects to apply any repayment
to reduce SunTrust’s Funded Participation without a corresponding reduction of the other
Participant’s Funded Participation, SunTrust shall be obligated to make a payment to each
Participant equal to such Participant’s Pro Rata Share of such
payment in the applicable currency upon the earlier of (i) the next Participant Monthly
Payment Date or Participant Canadian Monthly Payment Date (as applicable) and (ii) the occurrence
of a Credit Event hereunder.

(e) If during any period when no Credit Event has occurred and is continuing, amounts received
by Servicer are not capable of being allocated to any specific Loan or, in the case of amounts
allocable to a specific Loan, are not sufficient to repay all obligations then due and owing with
respect thereto, such amounts shall be applied by the Servicer as follows: (i) first, to the
payment of Participant Commitment Fees owing to the Participants hereunder, (ii) second, to the
payment of accrued interest on the Funded Participation hereunder, (iii) third, to the payment of
the Servicing Fees owing under the Servicing Agreement, (iv) fourth, to the repayment of the Funded
Participations outstanding hereunder, (v) fifth, to the payment of all other amounts owing to the
Servicer or any Participant hereunder, and (vi) sixth, if all obligations of the Sponsor pursuant
to the Operative Documents have been satisfied in full, to the Sponsor; provided, however, that (i)
to the extent such amounts received by the Servicer are in Canadian Dollars, such amounts shall be
applied only to the foregoing obligations that are payable in Canadian Dollars, and (ii) to the
extent such amounts received by the Servicer are in US Dollars, such amounts shall be applied only
to the foregoing obligations that are payable in US Dollars.

(f) During any period when a Credit Event has occurred and is continuing, any amounts received
by Servicer with respect to the Loans shall be applied, after deduction of any expenses incurred in
the collection of any such amounts and after conversion to the applicable currency as necessary, as
follows (i) first, to the payment of any accrued and unpaid Servicing Fee, (ii) second, to each
Participant in accordance with Pro Rata Share, and (iii) thereafter, to such Persons as may be
legally entitled thereto.

 

41

 

(g) If not sooner repaid, all amounts due and payable to the Servicer and the Participants
under the Operative Documents shall be due and payable in full on the Final Termination Date.

Section 3.3. Monthly Servicing Report. On the last Business Day of each calendar
month, the Servicer shall telecopy to the Sponsor a servicing report in the form of Exhibit
F (the “Monthly Servicing Report”) setting forth the following information with respect the
Loans:

(a) the aggregate principal balance of the US Loans and the aggregate principal balance of the
Canadian Loans as of the close of business on the last day of the preceding Payment Period and on
such day;

(b) the aggregate amount of the US Loans and the aggregate principal balance of the Canadian
Loans repurchased by the Sponsor, and all amounts collected with respect to the Collateral for the
US Loans and the Canadian Loans since the date of the last Monthly Servicing Report;

(c) the aggregate US Loan Commitments and the aggregate Canadian Loan Commitments as of the
close of business on the last Business Day of the preceding calendar month and on such day; and

(d) each US Loan and each Canadian Loan which is past due (including the past due amount and
the number of days past due).

ARTICLE IV

LOAN DEFAULT; RIGHT TO MAKE GUARANTY DEMAND

Section 4.1. Notice Of Loan Default. The Servicer shall notify the Sponsor and the
relevant Borrower of a Loan Payment Default within fifteen (15) Business Days following the
occurrence thereof and of any other Loan Default of which the Servicer has actual knowledge in
accordance with the terms of the Servicing Agreement.

Section 4.2. Waiver or Cure By The Sponsor of Covenant Defaults and Loan Payment
Defaults.

(a) Unless a Credit Event or an Unmatured Credit Event has occurred and is continuing, the
Sponsor shall be entitled (but not obligated) to request that the Servicer waive any default by the
Borrower or any Guarantor under the Loan Documents to which it is a party, other than a Loan
Default or a default arising based upon the action or inaction of the Sponsor or any of its
Subsidiaries, by sending to the Servicer for execution a Default Waiver Letter, which Servicer
agrees to execute and mail to the appropriate Borrower if such Default Waiver Letter is in form and
substance satisfactory to the Servicer.

(b) Notwithstanding the foregoing clause (a), unless a Credit Event or an Unmatured Credit
Event has occurred and is continuing, the Sponsor shall be entitled (but not obligated) to request
that the Servicer waive any Loan Payment Default (including a Loan Payment Default resulting from
the failure of a Borrower to remain in compliance with the borrowing base requirements of the
applicable

 

42

 

Loan Agreement) by sending to the Servicer for execution a Default Waiver Letter, which
Servicer agrees to execute and mail to the appropriate Borrower if such Default Waiver Letter is in
form and substance satisfactory to the Servicer, curing such Loan Payment Default in full;
provided, however, that (i) Sponsor shall not waive and cure more than two (2)
consecutive Loan Payment Defaults for any Loan nor more than a total of four (4) Loan Payment
Defaults in any four year period for any Loan and (ii) such Loan Payment Default must be cured by
Sponsor, and the Default Waiver Letter for such Loan Payment Default received by Servicer, during
the Response Period for such Loan.

Section 4.3. [Reserved].

Section 4.4. Rights during Response Period. Unless a Credit Event or an Unmatured
Credit Event has occurred and is continuing, the Servicer shall refrain during any Response Period
from taking any legal action against the Defaulted Borrower under the Defaulted Loan which is the
subject of such Response Period, and from accelerating payment of the Loan Indebtedness under such
Defaulted Loan but the Servicer shall cease funding any further Advances pursuant to the Loan
Commitment to such Defaulted Borrower. If the Sponsor waives and cures (or causes the applicable
Borrower to cure) any Loan Payment Default prior to
the expiration of a Response Period, then as to each Loan Payment Default so waived and cured,
the Defaulted Borrower’s and the Servicer’s respective rights and obligations under the Loan
Documents shall be restored to the same status as if such waived Loan Payment Default never
occurred.

Section 4.5. Rights after Response Period and for Loan Defaults other than Loan Payment
Defaults. In the event that any Loan Default other than a Loan Payment Default occurs and is
continuing after the expiration of the Response Period, or that any Loan Payment Default is not
cured during the applicable Response Period, (i) the Servicer shall have the right to (A) demand
that Sponsor comply with its obligations with respect to such Defaulted Loan set forth in
Article X and (B) administer and enforce such Loan as it deems appropriate, without regard
to any limitations or restrictions set forth herein (but subject to Article III in all
events) or in any other Operative Document, and (ii) notwithstanding anything contained in this
Article IV to the contrary, the Sponsor shall, within five (5) Business Days of its receipt
of a written demand from the Servicer instructing it to do so, purchase the Loan Indebtedness of
the Defaulted Loan and assume the Loan Commitment related thereto.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

The Sponsor represents and warrants to the Servicer and each Participant as follows:

Section 5.1. Existence; Power. The Sponsor and each of its Subsidiaries (i) is duly
organized, validly existing and in good standing as a corporation under the laws of the
jurisdiction of its organization, (ii) has all requisite power and authority to carry on its
business as now conducted, and (iii) is duly qualified to do business, and is in good standing, in
each jurisdiction where such qualification is required, except where a failure to be so qualified
could not reasonably be expected to result in a Material Adverse Effect.

Section 5.2. Organizational Power; Authorization. The execution, delivery and
performance by each Credit Party of the Transaction Documents to which it is a party are within
such Credit Party’s organizational powers and have been duly authorized by all necessary
organizational, and

 

43

 

if required, stockholder, action. This Agreement has been duly executed and
delivered by the Sponsor, and constitutes, and each other Transaction Document to which any Credit
Party is a party, when executed and delivered by such Credit Party, will constitute, valid and
binding obligations of the Sponsor or such Credit Party (as the case may be), enforceable against
it in accordance with their respective terms, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’
rights generally and by general principles of equity.

Section 5.3. Governmental Approvals; No Conflicts. The execution, delivery and
performance by the Sponsor of this Agreement, and by each Credit Party of the other Transaction
Documents to which it is a party (a) do not require any consent or approval of, registration or
filing with, or any action by, any Governmental Authority, except those as have been obtained or
made and are in full force and effect or where the failure to do so, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect, (b) will not violate
any applicable law or regulation or the charter, by-laws or other organizational documents of the
Sponsor or any of its Subsidiaries or any judgment or order of any Governmental Authority binding
on the Sponsor or any of its Subsidiaries, (c) will not violate or result in a default under any
indenture, material agreement or other material instrument binding on the Sponsor or any of its
Subsidiaries or any of its assets or give rise to a right thereunder to require any payment to be
made by the Sponsor or any of its Subsidiaries and (d) will not result in the creation or
imposition of any Lien on any asset of the Sponsor or any of its Subsidiaries, except Liens (if
any) created under the Operative Documents.

Section 5.4. Financial Statements. The Sponsor has furnished to each Participant (i)
the audited consolidated balance sheet of the Sponsor and its Subsidiaries as of December 31, 2009,
and the related consolidated statements of income, shareholders’ equity and cash flows for the
fiscal year then ended prepared by Ernst & Young and (ii) the unaudited consolidated balance sheet
of the Sponsor and its Subsidiaries as of March 31, 2010, and the related unaudited consolidated
statements of income and cash flows for the fiscal quarter and year-to-date period then ending,
certified by a Responsible Officer. Such financial statements fairly present the consolidated
financial condition of the Sponsor and its Subsidiaries as of such dates and the consolidated
results of operations for such periods in conformity with GAAP consistently applied, subject to
year end audit adjustments and the absence of footnotes in the case of the statements referred to
in clause (ii). Since December 31, 2009, there have been no changes with respect to the Sponsor and
its Subsidiaries which have had or could reasonably be expected to have, singly or in the
aggregate, a Material Adverse Effect.

Section 5.5. Litigation and Environmental Matters.

(a) No litigation, investigation or proceeding of or before any arbitrators or Governmental
Authorities is pending against or, to the knowledge of the Sponsor, threatened against or affecting
the Sponsor or any of its Subsidiaries (i) as to which there is a reasonable possibility of an
adverse determination that could reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect or (ii) which in any manner draws into question the validity
or enforceability of this Agreement or any other Transaction Document. Except as set forth on
Schedule 5.5(a), as of the Effective Date, no litigation, investigation or proceeding of or
before any arbitrators or Governmental Authorities is pending against or, to the knowledge of the
Sponsor, threatened against or affecting the Sponsor or any of its Subsidiaries that seeks damages
in excess of $5,000,000.

 

44

 

(b) Except for the matters set forth on Schedule 5.5(b), neither the Sponsor nor any
of its Subsidiaries (i) has failed to comply in any material respect with any Environmental Law or
to obtain, maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability in excess of $5,000,000,
(iii) has received notice of any claim with respect to any Environmental Liability in excess of
$5,000,000 or (iv) knows of any basis for any Environmental Liability in excess of $5,000,000.

Section 5.6. Compliance with Laws and Agreements. The Sponsor and each Subsidiary is
in compliance with (a) all applicable laws, rules, regulations and orders of any
Governmental Authority, and (b) all indentures, agreements or other instruments binding upon
it or its properties, except where non-compliance, either singly or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

Section 5.7.
 Investment Company Act, Etc. Neither the Sponsor nor any of its
Subsidiaries is (a) an “investment company”, as defined in, or subject to regulation under, the
Investment Company Act of 1940, as amended or (b) otherwise subject to any other regulatory scheme
limiting its ability to incur debt.

Section 5.8. Taxes. The Sponsor and its Subsidiaries and each other Person for whose
taxes the Sponsor or any Subsidiary could become liable have timely filed or caused to be filed all
Federal income tax returns and all other material tax returns that are required to be filed by
them, and have paid all taxes shown to be due and payable on such returns or on any assessments
made against it or its property and all other taxes, fees or other charges imposed on it or any of
its property by any Governmental Authority, except (i) to the extent the failure to do so would not
have a Material Adverse Effect or (ii) where the same are currently being contested in good faith
by appropriate proceedings and for which the Sponsor or such Subsidiary, as the case may be, has
set aside on its books adequate reserves. The charges, accruals and reserves on the books of the
Sponsor and its Subsidiaries in respect of such taxes are adequate, and no tax liabilities that
could be materially in excess of the amount so provided are anticipated.

Section 5.9.
 [Reserved].

Section 5.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions
used for purposes of Statement of Financial Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than $5,000,000 the fair market
value of the assets of such Plan, and the present value of all accumulated benefit obligations of
all underfunded Plans (based on the assumptions used for purposes of Statement of Financial
Standards No. 87) did not, as of the date of the most recent financial statements reflecting such
amounts, exceed by more than $5,000,000 the fair market value of the assets of all such underfunded
Plans.

Section 5.11. Ownership of Property.

(a) Each of the Sponsor and its Subsidiaries has good title to, or valid leasehold interests
in, all of its real and personal property material to the operation of its business.

 

45

 

(b) Each of the Sponsor and its Subsidiaries owns, or is licensed, or otherwise has the right,
to use, all patents, trademarks, service marks, tradenames, copyrights and other intellectual
property material to its business, and the use thereof by the Sponsor and its Subsidiaries does not
infringe on the rights of any other Person, except for any such infringements that, individually or
in the aggregate, would not have a Material Adverse Effect.

Section 5.12. Disclosure. The Sponsor has disclosed to the Participants all
agreements, instruments, and corporate or other restrictions to which the Sponsor or any of its
Subsidiaries is subject, and all other matters known to any of them, that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the
reports (including without limitation all reports that the Sponsor is required to file with the
Securities and Exchange Commission), financial statements, certificates or other written
information furnished by or on behalf of the Sponsor to the Servicer or any Participant in
connection with the negotiation or syndication of this Agreement or any other Operative Document or
delivered hereunder or thereunder (as modified or supplemented by any other information so
furnished) contains any material misstatement of fact or omits to state any material fact necessary
to make the statements therein, taken as a whole, in light of the circumstances under which they
were made, not misleading; provided, that with respect to projected financial information, the
Sponsor represents only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time.

Section 5.13. Labor Relations. There are no strikes, lockouts or other material labor
disputes or grievances against the Sponsor or any of its Subsidiaries, or, to the Sponsor’s
knowledge, threatened against or affecting the Sponsor or any of its Subsidiaries, and no
significant unfair labor practice, charges or grievances are pending against the Sponsor or any of
its Subsidiaries, or to the Sponsor’s knowledge, threatened against any of them before any
Governmental Authority. All payments due from the Sponsor or any of its Subsidiaries pursuant to
the provisions of any collective bargaining agreement have been paid or accrued as a liability on
the books of the Sponsor or any such Subsidiary, except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

Section 5.14. Subsidiaries. Schedule 5.14 sets forth the name of, the
ownership interest of the Sponsor in, the jurisdiction of incorporation of, and the type of, each
Subsidiary and identifies each Subsidiary that is a Guarantor, in each case as of the Effective
Date.

Section 5.15. Representations and Warranties with Respect to Specific Loans. The
Sponsor represents and warrants to the Servicer and each Participant with respect to each Loan
Commitment established and each Advance made pursuant to the Operative Documents that:

(a) The Franchise Agreement, the Master Note, the Loan Agreement and each other Loan Document
executed in connection with such Loan Commitment each constitutes a valid and binding agreement of
each Borrower or guarantor party thereto and is enforceable against each such party in accordance
with its terms.

(b) The Master Note and accompanying Loan Documents executed in connection with such Loan and
delivered to the Servicer are the only contracts evidencing the transaction described therein and
constitute the entire agreement of the parties thereto with respect to such transaction and

 

46

 

Sponsor has not made any other promises, agreements or representations and warranties with respect to the
transactions evidenced by such Master Note.

(c) The Master Note and each accompanying Loan Document executed in connection with such Loan
is genuine and all signatures, names, amounts and other facts and statements therein and thereon
are true and correct.

(d) All disclosures required to be made under applicable federal and state law in connection
with such Loan have been properly and completely made with respect to each Master Note, the other
Loan Documents and the Loan and each such Master Note, other Loan Documents and Loan is in full
compliance with all applicable federal and state laws, including without limitation, applicable
state and federal usury laws and regulations.

(e) The proceeds of each Advance made pursuant to the US Line of Credit Commitments shall be
used solely to purchase inventory, and to the extent permitted by Sponsor, to pay state sales and
use taxes and freight charges. The proceeds of each Advance made pursuant to the Canadian Line of
Credit Commitments shall be used solely to purchase inventory, and to the extent permitted by
Sponsor, to pay sales and use taxes and freight charges. The Proceeds of each Revolving Loan or
Term Loan will be solely for the purpose of financing the acquisition and expansion of stores
franchised by the Sponsor and operated by the relevant Borrower and for Sponsor-approved working
capital purposes, but excluding in all cases any non-business purposes.

Section 5.16. OFAC. Neither the Sponsor nor any of its Subsidiaries (i) is a person
whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of
Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii)
engages in any dealings or transactions prohibited by Section 2 of such executive order, or is
otherwise associated with any such person in any manner violative of Section 2, or (iii) is a
person on the list of Specially Designated Nationals and Blocked Persons or subject to the
limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets
Control regulation or executive order.

Section 5.17. Patriot Act. Each of the Sponsor and its Subsidiaries is in compliance,
in all material respects, with (i) the Trading with the Enemy Act, as amended, and each of the
foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and
(ii) the Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And
Obstruct Terrorism (USA Patriot Act of 2001). No part of the proceeds of the Loans will be used,
directly or indirectly, for any payments to any governmental official or employee, political party,
official of a political party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

ARTICLE VI

AFFIRMATIVE COVENANTS

The Sponsor covenants and agrees that it will, as long as the Facility Commitment is in effect
or the Servicer is committed to make Advances under any Loan Documents and thereafter so long

 

47

 

as any Loans or Loan Commitments remain outstanding under this Agreement or Sponsor has any
other unsatisfied obligations under the Operative Documents:

Section 6.1. Financial Statements and Other Information. The Sponsor will deliver to
the Servicer and each Participant:

(a) as soon as available and in any event within 90 days after the end of each fiscal year of
Sponsor, a copy of the annual audited report for such fiscal year for the Sponsor and its
Subsidiaries, containing a consolidated and unaudited consolidating balance sheet of the Sponsor
and its Subsidiaries as of the end of such fiscal year and the related consolidated and unaudited
consolidating statements of income, stockholders’ equity and cash flows (together with all
footnotes thereto) of the Sponsor and its Subsidiaries for such fiscal year, setting forth in each
case in comparative form the figures for the previous fiscal year, all in reasonable detail and
reported on by Ernst & Young or other independent public accountants of nationally recognized
standing (without a “going concern” or like qualification, exception or explanation and without
any qualification or exception as to scope of such audit) to the effect that such financial
statements present fairly in all material respects the financial condition and the results of
operations of the Sponsor and its Subsidiaries for such fiscal year on a consolidated basis in
accordance with GAAP and that the examination by such accountants in connection with such
consolidated financial statements has been made in accordance with generally accepted auditing
standards;

(b) as soon as available and in any event within 45 days after the end of each fiscal quarter
of each fiscal year of the Sponsor (other than the last fiscal quarter), an unaudited consolidated
and consolidating balance sheet of the Sponsor and its Subsidiaries as of the end of such fiscal
quarter and the related unaudited consolidated and consolidating statements of income and cash
flows of the Sponsor and its Subsidiaries for such fiscal quarter and the then elapsed portion of
such fiscal year, setting forth in each case in comparative form the figures for the corresponding
quarter and the corresponding portion of Sponsor’s previous fiscal year, all certified by the chief
financial officer, treasurer or controller of the Sponsor as presenting fairly in all material
respects the financial condition and results of operations of the Sponsor and its Subsidiaries on a
consolidated basis in accordance with GAAP, subject to normal year-end audit adjustments and the
absence of footnotes;

(c) concurrently with the delivery of the financial statements referred to in clauses (a) and
(b) above, a certificate of a Responsible Officer, (i) certifying as to whether there exists a
Credit Event or an Unmatured Credit Event on the date of such certificate, and if a Credit Event or
an Unmatured Credit Event then exists, specifying the details thereof and the action which the
Sponsor has taken or proposes to take with respect thereto, (ii) setting forth in reasonable detail
calculations demonstrating compliance with Article VII and (iii) stating whether any change
in GAAP or the application thereof has occurred since the date of the Sponsor’s audited financial
statements referred to in Section 5.4 and, if any change has occurred, specifying the
effect of such change on the financial statements accompanying such certificate;

(d) concurrently with the delivery of the financial statements referred to in clause (a)
above, a certificate of the accounting firm that reported on such financial statements stating
whether they obtained any knowledge during the course of their examination of such financial
statements of any Credit
Event or Unmatured Credit Event (which certificate may be limited to the extent required by
accounting rules or guidelines);

 

48

 

(e) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed with the Securities and Exchange Commission, or
any Governmental Authority succeeding to any or all functions of said Commission, or with any
national securities exchange, or distributed by the Sponsor to its shareholders generally, as the
case may be; and

(f) promptly following any request therefor, such other information regarding the results of
operations, business affairs and financial condition of the Sponsor or any Subsidiary as the
Servicer or any Participant may reasonably request; and

(g) as soon as available and in any event within 30 days after the end of each fiscal year of
the Sponsor, a forecasted income statement, balance sheet, and statement of cash flows for the
following fiscal year.

Section 6.2. Notices of Material Events. The Sponsor will furnish to the Servicer and
each Participant prompt written notice of the following:

(a) the occurrence of any Credit Event or Unmatured Credit Event;

(b) the filing or commencement of any action, suit or proceeding by or before any arbitrator
or Governmental Authority against or, to the knowledge of the Sponsor, affecting the Sponsor or any
Subsidiary which, if adversely determined, could reasonably be expected to result in a Material
Adverse Effect;

(c) the occurrence of any event or any other development by which the Sponsor or any of its
Subsidiaries (i) fails to comply in any material respect with any Environmental Law or to obtain,
maintain or comply with any permit, license or other approval required under any Environmental
Law, (ii) becomes subject to any Environmental Liability in excess of $2,500,000, (iii) receives
notice of any claim with respect to any Environmental Liability in excess of $2,500,000, or (iv)
becomes aware of any basis for any Environmental Liability in excess of $2,500,000 and in each of
the preceding clauses, which individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect;

(d) the occurrence of any ERISA Event that alone, or together with any other ERISA Events that
have occurred, could reasonably be expected to result in liability of the Sponsor and its
Subsidiaries in an aggregate amount exceeding $2,500,000; and

(e) any other development that results in, or could reasonably be expected to result in, a
Material Adverse Effect.

(f) Each notice delivered under this Section 6.2 shall be accompanied by a written
statement of a Responsible Officer setting forth the details of the event or development requiring
such notice and any action taken or proposed to be taken with respect thereto.

Section 6.3. Existence; Conduct of Business. The Sponsor will, and will cause each of
its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and maintain in
full force and effect its legal existence and its respective rights, licenses, permits, privileges,
franchises,

 

49

 

patents, copyrights, trademarks and trade names material to the conduct of its business
and will continue to engage in the same business as presently conducted or such other businesses
that are reasonably related thereto; provided, that nothing in this Section 6.3
shall prohibit any merger, consolidation, liquidation or dissolution permitted under Section
8.3.

Section 6.4. Compliance with Laws, Etc. The Sponsor will, and will cause each of its
Subsidiaries to, comply with all laws, rules, regulations and requirements of any Governmental
Authority applicable to its business and properties, including without limitation, all
Environmental Laws, ERISA and OSHA, except where the failure to do so, either individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

Section 6.5. Payment of Obligations. The Sponsor will, and will cause each of its
Subsidiaries to, pay and discharge at or before maturity, all of its obligations and liabilities
(including without limitation all tax liabilities and claims that could result in a statutory Lien)
before the same shall become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) the Sponsor or such
Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with
GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to
result in a Material Adverse Effect.

Section 6.6. Books and Records. The Sponsor will, and will cause each of its
Subsidiaries to, keep proper books of record and account in which full, true and correct entries
shall be made of all dealings and transactions in relation to its business and activities to the
extent necessary to prepare the consolidated financial statements of Sponsor in conformity with
GAAP.

Section 6.7. Visitation, Inspection, Etc. The Sponsor will, and will cause each of
its Subsidiaries to, permit any representative of the Servicer or any Participant, to visit and
inspect its properties, to examine its books and records and to make copies and take extracts
therefrom, and to discuss its affairs, finances and accounts with any of its officers and with its
independent certified public accountants, all at such reasonable times and as often as the Servicer
or any Participant may reasonably request after reasonable prior notice to the Sponsor; provided,
however, if a Credit Event or Unmatured Credit Event has occurred and is continuing, no prior
notice shall be required. All reasonable expenses incurred by the Servicer and, at any time after
the occurrence and during the continuance of a Credit Event, any Participants in connection with
any such visit, inspection, audit, examination and discussions shall be borne by the Sponsor.

Section 6.8. Maintenance of Properties; Insurance. The Sponsor will, and will cause
each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear except where the failure to do
so, either individually or it the aggregate, could not reasonably be expected to result in a
Material Adverse
Effect and (b) maintain with financially sound and reputable insurance companies, insurance
with respect to its properties and business, and the properties and business of its Subsidiaries,
against loss or damage of the kinds customarily insured against by companies in the same or similar
businesses operating in the same or similar locations. In addition, and not in limitation of the
foregoing, the Sponsor shall maintain and keep in force insurance coverage on its inventory, as is
consistent with best industry practices. The Sponsor shall at all times cause the Servicer to be
named as additional insured on all of its casualty and liability policies.

 

50

 

Section 6.9. [Reserved].

Section 6.10. Additional Subsidiaries.

(a) The Sponsor may, after the Effective Date, acquire or form additional Domestic
Subsidiaries so long as the Sponsor, within ten (10) business days after any such Domestic
Subsidiary is acquired or formed, (i) notifies the Servicer and the Participants thereof and (ii)
causes such Domestic Subsidiary to become a Guarantor by executing an agreement in the form of
Annex I to the Guaranty Agreement and (iii) causes such Domestic Subsidiary to deliver
simultaneously therewith similar documents applicable to such Domestic Subsidiary described in
Section 13.1 as reasonably requested by the Servicer.

(b) The Sponsor shall not acquire or form any additional Foreign Subsidiaries; provided,
however, that the Sponsor may acquire or form additional Subsidiaries incorporated under the laws
of Canada so long as the Sponsor, within ten (10) business days after any such Foreign Subsidiary
is acquired or formed, (i) notifies the Servicer and the Participants thereof, (ii) delivers stock
certificates and related pledge agreements, in form satisfactory to a collateral agent acceptable
to the Servicer, evidencing the pledge of 66% (or such greater percentage which would not result
in material adverse tax consequences) of the issued and outstanding capital stock entitled to vote
(within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding
capital stock not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) of
each such Subsidiary directly owned by the Sponsor or any Domestic Subsidiary to secure the
Guaranteed Obligations, (iii) causes such Subsidiary to deliver simultaneously therewith similar
documents applicable to such Foreign Subsidiary described in Section 13.1 as reasonably
requested by the Servicer, and (iv) the Servicer enters into an intercreditor agreement, in form
and substance satisfactory to the Required Participants, with all other creditors of the Sponsor
having a similar covenant with the Sponsor.

ARTICLE VII

FINANCIAL COVENANTS

The Sponsor covenants and agrees that so long as the Facility Commitment remains outstanding
or any Loans or Loan Commitments remain outstanding or the Sponsor has any obligations under the
Operative Documents, and until the full and final payment of all indebtedness of all Borrowers
incurred pursuant to the Loan Documents and unless otherwise consented to in writing by the
Required Participants:

Section 7.1. Total Debt to EBITDA Ratio. The Sponsor and its Subsidiaries shall
maintain, as of the last day of each fiscal quarter of the Sponsor, commencing with the fiscal
quarter ending June 30, 2008, a Total Debt to EBITDA Ratio of not greater than 3.00:1.00.

Section 7.2. Total Adjusted Debt to Total Adjusted Capital Ratio. The Sponsor and its
Subsidiaries shall maintain, as of the last day of each fiscal quarter of the Sponsor, commencing
with the fiscal quarter ending June 30, 2008, a Total Adjusted Debt to Total Adjusted Capital Ratio
of not greater than 0.60:1.00.

 

51

 

Section 7.3. Fixed Charge Coverage Ratio. The Sponsor and its Subsidiaries shall
maintain, as of the last day of each fiscal quarter of the Sponsor, commencing with the fiscal
quarter ending June 30, 2008, a Fixed Charge Coverage Ratio of not less than 2:00 to 1:00.

Section 7.4. Minimum Consolidated Net Worth. The Sponsor and its Subsidiaries shall
maintain a Consolidated Net Worth of an amount equal to the sum of (i) $631,391,000, plus (ii) 50%
of cumulative positive Consolidated Net Income accrued during each fiscal quarter ending
thereafter, since the end of such fiscal quarter of the Sponsor, commencing with the fiscal quarter
ending June 30, 2008, plus (iii) 100% of the net proceeds from any public or private offering of
common stock of the Sponsor after May 23, 2008, calculated quarterly on the last day of each fiscal
quarter; provided, that if Consolidated Net Income is negative in any fiscal quarter the
amount added for such fiscal quarter shall be zero and such negative Consolidated Net Income shall
not reduce the amount of Consolidated Net Income added from any previous fiscal quarter. Promptly
upon the consummation of any offering of common stock of the Sponsor, the Sponsor shall notify the
Servicer in writing of the amount of the proceeds thereof.

ARTICLE VIII

NEGATIVE COVENANTS

The Sponsor covenants and agrees that so long as the Facility Commitment remains outstanding
or any Loans or Loan Commitments remain outstanding or the Sponsor has any obligations under the
Operative Documents, and until the full and final payment of all indebtedness of all Borrowers
incurred pursuant to the Loan Documents and unless otherwise consented to in writing by the
Required Participants:

Section 8.1.
Indebtedness.  The Sponsor will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness, except:

(a) Indebtedness created pursuant to the Operative Documents;

(b) Indebtedness existing on the date hereof and set forth on Schedule 8.1 and
extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof (immediately prior to giving effect to such extension, renewal or
replacement) or shorten the maturity or the weighted average life thereof;

(c) Indebtedness of the Sponsor or any Subsidiary incurred after the Effective Date to finance
the acquisition, construction or improvement of any fixed or capital assets, including Capital
Lease Obligations and any Indebtedness assumed in connection with the acquisition of any such
assets or secured by a Lien on any such assets prior to the acquisition thereof; provided, that
such Indebtedness is incurred prior to or within 90 days after such acquisition or the completion
of such construction or improvements or extensions, renewals, and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof (immediately prior to
giving effect to such extension, renewal or replacement) or shorten the maturity or the weighted
average life thereof; provided further, that the aggregate principal amount of such Indebtedness
does not exceed $30,000,000 at any time outstanding;

 

52

 

(d) Indebtedness of the Sponsor owing to any Credit Party and of any Credit Party owing to the
Sponsor or any other Credit Party;

(e) Guarantees by the Sponsor of Indebtedness of any Credit Party and by any Credit Party of
Indebtedness of the Sponsor or any other Credit Party;

(f) Indebtedness under the Revolving Credit Agreement;

(g) [Reserved];

(h) Guarantees by the Sponsor of Indebtedness of certain franchise operators of the Sponsor,
provided such guarantees are given by the Sponsor in connection with (1) loans made pursuant to
the terms of this Agreement, (2) loans made by SunTrust Bank to finance the purchase of equity
interests in certain franchises of the Sponsor in an aggregate principal amount not to exceed
$20,000,000, (3) loans made pursuant to the terms of the RBC Loan Facility Agreement in an
aggregate principal amount not to exceed Cdn.$50,000,000 and (4) loans made pursuant to terms of
the RIMCO Loan Facility Agreement in an aggregate principal amount not to exceed $7,500,000;

(i) endorse negotiable instruments for collection in the ordinary course of business;

(j) Guarantees by Sponsor of Indebtedness of Foreign Subsidiaries, provided that the amount of
such Guaranteed Indebtedness, together with the principal amount any loans to Foreign Subsidiaries
permitted to be made under clause (l) below, does not exceed $30,000,000 at any time;

(k) Loans by Sponsor to its Foreign Subsidiaries, provided that the amount of such loans,
together with the amount of Guaranteed Indebtedness permitted to be incurred under clause (j)
above, does not exceed $30,000,000 at any time; and

(l) Indebtedness as evidenced by the 5.03% Senior Notes of Sponsor in the amount of
$60,000,000 issued pursuant to the 2005 Note Agreement, together with (x) extensions, renewals and
replacements of any such Indebtedness that do not increase the outstanding principal amount thereof
above $60,000,000 or shorten the maturity or the weighted average life thereof and (y) Guarantees
of such Indebtedness by any Subsidiaries of Sponsor; and

(m) other unsecured Indebtedness in an aggregate principal amount not to exceed $75,000,000 at
any time outstanding.

Section 8.2. Negative Pledge. The Sponsor will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien on any of its assets or property
now owned or hereafter acquired (other than any shares of stock of the Sponsor that are repurchased
by the Sponsor and retired or held by the Sponsor) or, except:

(a) Permitted Encumbrances;

(b) any Liens on any property or asset of the Sponsor or any Subsidiary existing on the
Effective Date set forth on Schedule 8.2; provided, that such Lien shall not apply
to any other property or asset of the Sponsor or any Subsidiary;

 

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(c) purchase money Liens upon or in any fixed or capital assets to secure the purchase price
or the cost of construction or improvement of such fixed or capital assets or to secure
Indebtedness incurred solely for the purpose of financing the acquisition, construction or
improvement of such fixed or capital assets (including Liens securing any Capital Lease
Obligations); provided, that (i) such Lien secures Indebtedness permitted by Section
8.1(c), (ii) such Lien attaches to such asset concurrently or within 90 days after the
acquisition, improvement or completion of the construction thereof; (iii) such Lien does not extend
to any other asset; and (iv) the Indebtedness secured thereby does not exceed the cost of
acquiring, constructing or improving such fixed or capital assets together with all interest, fees
and costs incurred in connection therewith;

(d) any Lien (i) existing on any asset of any Person at the time such Person becomes a
Subsidiary of the Sponsor, (ii) existing on any asset of any Person at the time such Person is
merged with or into the Sponsor or any Subsidiary of the Sponsor or (iii) existing on any asset
prior to the acquisition thereof by the Sponsor or any Subsidiary of the Sponsor; provided,
that any such Lien was not created in the contemplation of any of the foregoing and any such Lien
secures only those obligations which it secures on the date that such Person becomes a Subsidiary
or the date of such merger or the date of such acquisition;

(e) extensions, renewals, or replacements of any Lien referred to in paragraphs (a) through
(d) of this Section 8.2; provided, that the principal amount of the Indebtedness
secured thereby is not increased and that any such extension, renewal or replacement is limited to
the assets originally encumbered thereby; and

(f) [Reserved];

(g) Liens securing the obligations of the Sponsor under the Revolving Credit Agreement; and

(h) Liens on shares of stock of any Foreign Subsidiary to the extent that the Guaranteed
Obligations are secured pari passu with any other Indebtedness or obligations secured thereby.

Section 8.3. 
Fundamental Changes.

(a) The Sponsor will not, and will not permit any Subsidiary to, merge into or consolidate
into any other Person, or permit any other Person to merge into or consolidate with it, or sell,
lease, transfer or otherwise dispose of (in a single transaction or a series of transactions) all
or substantially all of its assets (in each case, whether now owned or hereafter acquired) or all
or substantially all of the stock of any of its Subsidiaries (in each case, whether now owned or
hereafter acquired) or liquidate or dissolve; provided, that if at the time thereof and immediately
after giving effect thereto, no Credit Event shall have occurred and be continuing (i) the Sponsor
or any Subsidiary may merge with a Person if the Sponsor (or such Subsidiary if the Sponsor is not
a party to such merger) is the surviving Person, (ii) any Subsidiary may merge into another
Subsidiary or the Sponsor; provided, however, that if the Sponsor is a party to such merger, the
Sponsor shall be the surviving Person, provided, further, that if any Subsidiary to such merger is
a Guarantor, the Guarantor shall be the surviving Person, (iii) any Subsidiary may sell, transfer,
lease or otherwise dispose of all or substantially all of its assets to the Sponsor or to a
Guarantor, and (iv) any other Subsidiary may liquidate or dissolve if

 

54

 

the Sponsor determines in
good faith that such liquidation or dissolution is in the best interests of the
Sponsor, is not materially disadvantageous to the Participants, and such Subsidiary dissolves
into another Guarantor or the Sponsor; provided, that any such merger involving a Person that is
not a wholly-owned Subsidiary immediately prior to such merger shall not be permitted unless also
permitted by Section 8.4.

(b) The Sponsor will not, and will not permit any of its Subsidiaries to, engage in any
business other than businesses of the type conducted by the Sponsor and its Subsidiaries on the
date hereof and businesses reasonably related thereto.

Section 8.4. 
Investments, Loans, Etc. The Sponsor will not, and will not permit any
of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person
that was not a wholly-owned Subsidiary prior to such merger), any common stock, evidence of
indebtedness or other securities (including any option, warrant, or other right to acquire any of
the foregoing) of, make or permit to exist any loans or advances to, any obligations of, or make or
permit to exist any investment or any other interest in, any other Person (all of the foregoing
being collectively called “Investments”), or purchase or otherwise acquire (in one transaction or a
series of transactions) any assets of any other Person that constitute a business unit, or create
or form any Subsidiary, except:

(a) Investments (other than Permitted Investments) existing on the date hereof and set forth
on Schedule 8.4 (including Investments in Subsidiaries);

(b) Permitted Investments;

(c) Permitted Acquisitions;

(d) Investments made by the Sponsor in or to any other Credit Party and by any other Credit
Party to the Sponsor or in or to another Credit Party;

(e) loans or advances to employees, officers, directors or stockholders of the Sponsor or any
Subsidiary in the ordinary course of business; provided, however, that the aggregate amount of all
such loans and advances does not exceed $1,000,000 at any time;

(f) (i) loans to franchise operators and owners of franchises acquired or funded pursuant to
the Loan Facility Agreement, the RIMCO Loan Facility Agreement and the RBC Loan Facility Agreement
and (ii) other adequately secured and properly monitored loans to franchise operators and owners of
franchises in an aggregate principal amount outstanding, together with loans outstanding under
clause (i) of this Section 8.4(f), not to exceed the aggregate facility amounts available
for borrowing by franchise operators that the Sponsor is permitted to guarantee pursuant to
Section 8.1;

(g) acquire and own stock, obligations or securities received in settlement of debts (created
in the ordinary course of business) owing to any Guarantor or any of their Subsidiaries;

(h) loans to Foreign Subsidiaries to the extent permitted under Section 8.1;

(i) loans to franchise operators to extent permitted under Section 8.1; and

(j) other Investments not to exceed $25,000,000 at any time;

 

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Section 8.5. Restricted Payments. The Sponsor will not, and will not permit its
Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any dividend on
any class of its stock, or make any payment on account of, or set apart assets for a sinking or
other analogous fund for, the purchase, redemption, retirement, defeasance or other acquisition of,
any shares of common stock or Indebtedness subordinated to the Guaranteed Obligations of the
Sponsor or any options, warrants, or other rights to purchase such common stock or such
subordinated Indebtedness, whether now or hereafter outstanding (each, a “Restricted Payment”),
except for (i) dividends payable by the Sponsor solely in shares of any class of its common stock,
(ii) Restricted Payments made by any Guarantor to the Sponsor or to another Guarantor and (iii) so
long as no Credit Event or Unmatured Credit Event has occurred and is continuing at the time such
dividend is paid or redemption or stock purchase is made, dividends, distributions, redemptions and
stock repurchases paid in cash which do not exceed fifty percent (50%) of Consolidated Net Income
of Sponsor (if greater than $0) for the immediately preceding Fiscal Year; provided, that
if the aggregate amount of all such dividends and distributions paid in cash in any Fiscal Year are
less than the amount permitted by clause (iii) above, the excess permitted amount for such year may
be carried forward once to the next succeeding Fiscal Year.

Section 8.6. Sale of Assets. The Sponsor will not, and will not permit any of its
Subsidiaries to, convey, sell, lease, assign, transfer or otherwise dispose of, any of its assets,
business or property, whether now owned or hereafter acquired, or, in the case of any Subsidiary,
issue or sell any shares of such Subsidiary’s common stock to any Person other than the Sponsor or
a Guarantor (or to qualify directors if required by applicable law), except (a) the sale or other
disposition for fair market value of obsolete or worn out property or other property not necessary
for operations disposed of in the ordinary course of business; (b) the sale of inventory and
Permitted Investments in the ordinary course of business, (c) sales and dispositions permitted
under Section 8.3(a) and sale and leaseback transactions permitted under Section
8.9, (d) sales of assets, business or property identified in writing to Servicer and approved
by Participants in writing prior to the Effective Date, (e) sales of assets in connection with the
sale of a store owned by Sponsor to a franchisee of Sponsor and (f) other sales of assets made on
or after the Effective Date not to exceed $30,000,000 in book value in the aggregate; provided that
with respect to sales permitted under clauses (d) and (e), no Credit Event shall have occurred and
be continuing or result from such sale.

Section 8.7. Transactions with Affiliates. The Sponsor will not, and will not permit
any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices
and on terms and conditions not less favorable to the Sponsor or such Subsidiary than could be
obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among
the Sponsor and its wholly-owned Subsidiaries not involving any other Affiliates, (c) any
Restricted Payment permitted by Section 8.5 and (d) transactions permitted under
Section 8.4(e).

Section 8.8. Restrictive Agreements. The Sponsor will not, and will not permit any
Subsidiary to, directly or indirectly, enter into, incur or permit to exist any agreement that
prohibits, restricts or imposes any condition upon (a) the ability of the Sponsor or any Subsidiary
to create, incur or permit any Lien upon any of its assets or properties, whether now owned or
hereafter acquired, or (b) the ability of any Subsidiary to pay dividends or other distributions
with respect to its common stock, to make or repay loans or advances to the Sponsor or any other
Subsidiary, to Guarantee Indebtedness of the Sponsor or
any other Subsidiary or to transfer any of its property or assets to the Sponsor or any

 

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Subsidiary of the Sponsor; provided, that (i) the foregoing shall not apply to restrictions
or conditions imposed by law or by this Agreement or any other Transaction Document or the 2005
Note Agreement, (ii) the foregoing shall not apply to customary restrictions and conditions
contained in agreements relating to the sale of a Subsidiary pending such sale, provided such
restrictions and conditions apply only to the Subsidiary that is sold and such sale is permitted
hereunder, (iii) clause (a) shall not apply to restrictions or conditions imposed by any agreement
relating to secured Indebtedness permitted by this Agreement if such restrictions and conditions
apply only to the property or assets securing such Indebtedness, and (iv) clause (a) shall not
apply to customary provisions in leases restricting the assignment thereof.

Section 8.9. Sale and Leaseback Transactions. The Sponsor will not, and will not
permit any of its Subsidiaries to, enter into any arrangement, directly or indirectly, whereby it
shall sell or transfer any property, real or personal, used or useful in its business, whether now
owned or hereinafter acquired, and thereafter rent or lease such property or other property that it
intends to use for substantially the same purpose or purposes as the property sold or transferred;
provided, however, the Sponsor may engage in such sale and leaseback transactions so long as the
aggregate fair market value of all assets sold and leased back does not exceed $300,000,000 during
the term of this Agreement.

Section 8.10. Amendment to Material Documents. The Sponsor will not, and will not
permit any Subsidiary to, amend, modify or waive any of its rights in a manner materially adverse
to the Participants under its certificate of incorporation, bylaws or other organizational
documents.

Section 8.11. Accounting Changes. The Sponsor will not, and will not permit any
Subsidiary to, make any significant change in accounting treatment or reporting practices, except
as required by GAAP, or change the fiscal year of the Sponsor or of any Subsidiary, except to
change the fiscal year of a Subsidiary to conform its fiscal year to that of the Sponsor.

Section 8.12. Activities of Aaron Rents Puerto Rico. Unless Aaron Rents Puerto Rico
has become a Guarantor in accordance with the terms of Section 6.10 of this Loan Finance
Agreement, the Sponsor will not permit Aaron Rents Puerto Rico to engage in any business or
activity other than (a) maintaining its existence and/or winding up its affairs and (b) activities
related to the completion of the tax audit ongoing on the Effective Date, and no other Subsidiary
shall make any additional Investment in Aaron Rents Puerto Rico other than in connection with the
businesses and activities set forth in clause (a) and (b) above.

ARTICLE IX

CREDIT EVENTS AND REMEDIES

In the event that:

Section 9.1. the Sponsor shall fail to pay any amount due hereunder; or

Section 9.2. any representation or warranty made or deemed made by or on behalf of the Sponsor
or any Subsidiary in or in connection with this Agreement or any other Operative Document
(including the Schedules attached thereto) and any amendments or modifications hereof or waivers
hereunder, or in any certificate, report, financial statement or other document submitted to
the Servicer or the Participants by any Credit Party or any representative of any Credit Party
pursuant to or in connection

 

57

 

with this Agreement or any other Operative Document shall prove to be
incorrect in any material respect when made or deemed made or submitted; or

Section 9.3. the Sponsor shall fail to observe or perform any covenant or agreement contained
in Sections 6.1, 6.2, 6.3 (solely with respect to the Sponsor’s existence) or
Articles VII or VIII; or

Section 9.4. any Credit Party shall fail to observe or perform any covenant or agreement
contained in this Agreement (other than those referred to in clauses 9.1, 9.2 and 9.3 above), and
such failure shall remain unremedied for 30 days after the earlier of (i) any officer of the
Sponsor becomes aware of such failure, or (ii) notice thereof shall have been given to the Sponsor
by the Servicer or any Participant; or

Section 9.5. any event of default (after giving effect to any grace period) shall have
occurred and be continuing under the Revolving Credit Documents or the RIMCO Loan Facility
Agreement, or all or any part of the obligations due and owing under the Revolving Credit Agreement
or the RIMCO Loan Facility Agreement are accelerated, declared to be due and payable or required to
be prepaid or redeemed, in each case prior to the stated maturity thereof;

Section 9.6. the Sponsor or any Subsidiary (whether as primary obligor or as guarantor or
other surety) shall fail to pay any principal of or premium or interest on any Material
Indebtedness that is outstanding, when and as the same shall become due and payable (whether at
scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall
continue after the applicable grace period, if any, specified in the agreement or instrument
evidencing such Indebtedness; or any other event shall occur or condition shall exist under any
agreement or instrument relating to such Indebtedness and shall continue after the applicable grace
period, if any, specified in such agreement or instrument, if the effect of such event or condition
is to accelerate, or permit the acceleration of, the maturity of such Indebtedness; or any such
Indebtedness shall be declared to be due and payable; or required to be prepaid or redeemed (other
than by a regularly scheduled required prepayment or redemption), purchased or defeased, or any
offer to prepay, redeem, purchase or defease such Indebtedness shall be required to be made, in
each case prior to the stated maturity thereof; or

Section 9.7. the Sponsor or any Subsidiary shall (i) commence a voluntary case or other
proceeding or file any petition seeking liquidation, reorganization or other relief under any
federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect
or seeking the appointment of a custodian, trustee, receiver, liquidator or other similar official
of it or any substantial part of its property, (ii) consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition described in clause (i) of
this Section 9.7, (iii) apply for or consent to the appointment of a custodian, trustee,
receiver, liquidator or other similar official for the Sponsor or any such Material Subsidiary or
for a substantial part of its assets, (iv) file an answer admitting the material allegations of a
petition filed against it in any such proceeding, (v) make a general assignment for the benefit of
creditors, or (vi) take any action for the purpose of effecting any of the foregoing; or

Section 9.8. an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of the Sponsor or any
Subsidiary or its debts, or any substantial part of its assets, under any federal, state or
foreign bankruptcy,

 

58

 

insolvency or other similar law now or hereafter in effect or (ii) the appointment of a
custodian, trustee, receiver, liquidator or other similar official for the Sponsor or any
Subsidiary or for a substantial part of its assets, and in any such case, such proceeding or
petition shall remain undismissed for a period of 60 days or an order or decree approving or
ordering any of the foregoing shall be entered; or

Section 9.9. the Sponsor or any Subsidiary shall become unable to pay, shall admit in writing
its inability to pay, or shall fail to pay, its debts as they become due; or

Section 9.10. an ERISA Event shall have occurred that when taken together with other ERISA
Events that have occurred, could reasonably be expected to result in liability to the Sponsor and
the Subsidiaries in an aggregate amount exceeding $2,500,000 or otherwise having a Material Adverse
Effect; or

Section 9.11. judgments and orders for the payment of money in excess of $10,000,000 in the
aggregate, to the extent not covered by insurance for which the insurance carrier has acknowledged
coverage, shall be rendered against the Borrower or any Subsidiary, and either (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there
shall be a period of 30 consecutive days during which a stay of enforcement of such judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect; or

Section 9.12. any non-monetary judgment or order shall be rendered against the Sponsor or any
Subsidiary that could reasonably be expected to have a Material Adverse Effect, and there shall be
a period of 30 consecutive days during which a stay of enforcement of such judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect; or

Section 9.13. a Change in Control shall occur or exist; or

Section 9.14. any provision of any Guaranty Agreement shall for any reason cease to be valid
and binding on, or enforceable against, any Guarantor, or any Guarantor shall so state in writing,
or any Guarantor shall seek to terminate its Guaranty Agreement; or

Section 9.15. there shall exist or occur any default or event of default as provided under the
terms of any other Operative Document (after giving effect to any notice and cure periods set forth
in such Operative Document), or any Operative Document ceases to be in full force and effect or the
validity or enforceability thereof is disaffirmed by or on behalf of Sponsor or any other Credit
Party, or at any time it is or becomes unlawful for Sponsor or any other Credit Party to perform or
comply with its obligations under any Operative Document, or the obligations of Sponsor or any
other Credit Party under any Operative Document are not or cease to be legal, valid and binding on
Sponsor or any such Credit Party;

then upon the occurrence and during the continuation of any such event (each, a “Credit Event”):

(a) the Servicer may, with the consent of the Required Participants, and upon the written
request of the Required Participants, shall, take any or all of the following actions, without
prejudice to the rights of the Servicer or any Participant to enforce its claims against Sponsor,
any other Credit Party, any Borrower or other obligor with respect to any Loan: (i) declare the
Facility Commitment terminated, whereupon the Facility Commitment shall terminate immediately and
any unpaid Participant

 

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Commitment Fee shall forthwith become due and payable without any other
notice of any kind (with the express understanding that such termination of the Facility Commitment
shall not result in a termination
of the Participating Commitments of each Participant or of the obligation of the Servicer to fund
any Loan Commitment); (ii) demand that the Sponsor purchase specified or all outstanding Loans and
Loan Commitments by paying to the Servicer the Loan Indebtedness of each such Loan and assuming the
Servicer’s obligations under each Loan Commitment, whereupon such amount shall become, forthwith
due and payable without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Sponsor (with the express understanding the limitations on Sponsor’s guaranty
obligations set forth in Article X shall not apply); and (iii) take any other action and
exercise any other remedy available by contract or at law; provided, that, if a Credit
Event specified in Sections 9.7, 9.8 or 9.9 shall occur, the result which
would occur upon the giving of notice by the Servicer to any Credit Party, shall occur
automatically without the giving of any such notice; and

(b) in addition, the Servicer may, with the consent of the Required Participants and shall,
upon the written request of the Required Participants, to the extent authorized to do so pursuant
to the Loan Agreements (which authorization is limited to certain specified Credit Events), (x)
cease funding further Advances pursuant to the US Revolving Commitments and the Line of Credit
Commitments and (y) declare all Loan Indebtedness outstanding pursuant to the US Revolving
Commitments, the Line of Credit Commitments, the US Term Loan Commitments and the Canadian Term
Loan Commitments to be immediately due and payable in accordance with the terms of the applicable
Operative Documents and exercise all rights and remedies provided under the Operative Documents.

ARTICLE X

GUARANTY

In addition to its obligations upon the occurrence of a Credit Event or a Change of Control
and its other obligations pursuant to the Operative Documents, the Sponsor hereby agrees as
follows:

Section 10.1. Unconditional Guaranty. The Sponsor hereby unconditionally and
irrevocably guarantees to the Servicer, each Participant and any transferee of the Participants,
the full and prompt payment of all of the Guaranteed Obligations relating to the Loans and all
costs, charges and expenses (including reasonable attorneys’ fees) actually incurred or sustained
by the Servicer or any Participant in enforcing the obligations of the Sponsor hereunder or the
obligations of the Borrowers under the applicable Operative Documents. If any portion of the Loan
Indebtedness with respect to any Defaulted Loan is not paid by the date specified herein, Sponsor
hereby agrees to and will immediately pay the same in the applicable currency, without resort by
Servicer or any Participant to any other person or party. The obligation of Sponsor to Servicer
and the Participants hereunder is primary, absolute and unconditional, except as may be
specifically set forth herein. This is a guaranty of payment and not of collection. The
obligations of the Sponsor pursuant to this Article X constitute a guarantee that is
continuing in nature.

The Servicer may, with the consent of the Required Participants and shall, upon the written request
of the Required Participants, in the event that the obligations of the Sponsor with respect to a
Defaulted Loan have arisen hereunder, request that the Sponsor purchase the Defaulted Loan and
related Loan Commitment from the Servicer prior to the acceleration of the Defaulted Loan pursuant
to the terms of the applicable Operative Documents for an amount equal to the Loan Indebtedness
with respect to such Defaulted Loan, and Sponsor shall promptly upon receipt of such request,
purchase such Defaulted Loan and assume the Loan Commitment related thereto, and such purchase by
the Sponsor shall be deemed to

 

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be a payment hereunder in such amount.

Section 10.2. [Reserved].

Section 10.3. Continuing Guaranty. The obligations of the Sponsor pursuant to this
Article X constitute a guarantee which is continuing in nature and shall be effective with
respect to the full amount outstanding under all Guaranteed Obligations, now existing or hereafter
made or extended, regardless of the amount.

Section 10.4. Waivers. The Sponsor hereby waives notice of Servicer’s and each
Participant’s acceptance of this Agreement and the creation, extension or renewal of any Loans or
other Guaranteed Obligations. Sponsor hereby consents and agrees that, at any time or times,
without notice to or further approval from Sponsor, and without in any way affecting the
obligations of Sponsor hereunder, Servicer and the Participants may, with or without consideration
(i) release, compromise with, or agree not to sue, in whole or in part, any Borrower or any other
obligor, guarantor, endorser or surety on any Loans or any other Guaranteed Obligations, (ii)
renew, extend, accelerate, or increase or decrease the principal amount of any Loans or other
Guaranteed Obligations, either in whole or in part, (iii) amend, waive, or otherwise modify any of
the terms of any Loans or other Guaranteed Obligations or of any mortgage, deed of trust, security
agreement, or other undertaking of any of the Borrowers or any other obligor, endorser, guarantor
or surety in connection with any Loans or other Guaranteed Obligations, and (iv) apply any payment
received from Borrowers or from any other obligor, guarantor, endorser or surety on the Loans or
other Guaranteed Obligations to any of the liabilities of Borrowers or of such other obligor,
guarantor, endorser, or surety which Servicer may choose, subject, however, to the rights of
Sponsor to bring a separate action for any breach of the Operative Documents pursuant to
Section 10.11.

Section 10.5. Additional Actions. Subject to Section 10.11, Sponsor hereby
consents and agrees that the Servicer may at any time or times, either with or without
consideration, surrender, release or receive any property or other Collateral of any kind or nature
whatsoever held by it or for its account securing any Loans or other Guaranteed Obligations, or
substitute any Collateral so held by Servicer for other Collateral of like or different kind,
without notice to or further consent from Sponsor, and such surrender, receipt, release or
substitution shall not in any way affect the obligations of Sponsor hereunder. Subject to
Section 10.11, Servicer shall have full authority to adjust, compromise, and receive less
than the amount due upon any such Collateral, and may enter into any accord and satisfaction
agreement with respect to the same as Servicer may deem advisable without affecting the obligations
of Sponsor hereunder. Servicer shall be under no duty to undertake to collect upon such Collateral
or any part thereof, and Sponsor’s obligations hereunder shall not be affected by Servicer’s
alleged negligence or mistake in judgment in handling, disposing of, obtaining, or failing to
collect upon or perfect a security interest in, any such Collateral.

Section 10.6. Additional Waivers. Sponsor hereby waives presentment, demand, protest,
and notice of dishonor of any of the liabilities guaranteed hereby. Neither Servicer nor any
Participant shall have any duty or obligation (i) to proceed or exhaust any remedy against any
Borrower, any other obligor, guarantor, endorser, or surety on any Loans or other Guaranteed
Obligations, or any other security held by Servicer or any Participant for any Loans or other
Guaranteed Obligations, or (ii) to give any notice whatsoever to Borrowers, Sponsor, or any other
obligor, guarantor, endorser, or surety on any Loans or other Guaranteed Obligations, before
bringing suit, exercising rights to any such security or instituting proceedings of any kind
against Sponsor, any Borrower, or any of them, and Sponsor hereby

 

61

 

waives any requirement for such
actions by Servicer or any Participant. Upon default by any Borrower and Servicer’s demand to
Sponsor hereunder, Sponsor shall be held and bound to Servicer and each Participant directly as
principal debtor in respect of the payment of the amounts hereby guaranteed, such liability of
Sponsor being joint and several with each Borrower and all other obligors, guarantors, endorsers
and sureties on the Loans or other Guaranteed
Obligations, subject, however, to the rights of Sponsor to bring a separate action for any
breach of the Operative Documents pursuant to Section 10.11.

Section 10.7. Postponement of Obligations. Until the Loan and other Guaranteed
Obligations of any Borrower to the Servicer and the Participants have been paid in full (i) all
present and future indebtedness of such Borrower to Sponsor (the “Subordinated Debt”) is hereby
postponed to the present and future Loan Indebtedness of such Borrower to Servicer and each
Participant, and all monies received from such Borrower or for its account by Sponsor with respect
to such Subordinated Debt shall be received in trust for Servicer and the Participants, and
promptly upon receipt, shall be paid over to Servicer for distribution to the Participants in
accordance herewith until such Borrower’s Loan Indebtedness to Servicer and the Participants is
fully paid and satisfied, all without prejudice to and without in any way affecting the obligations
of Sponsor hereunder; provided that unless a Loan Default or Loan Payment Default
has occurred and is continuing with respect to such Borrower, the Sponsor may accept and retain any
payments made by such Borrower to the Sponsor in the ordinary course of business, and (ii) Sponsor
shall not have any rights of subrogation or otherwise to participate in any security held by the
Servicer for any Loan to such Borrower or any other Guaranteed Obligations arising therefrom, and
Sponsor hereby waives such rights until such time as such Loan and other Guaranteed Obligations
have been paid in full to the Servicer and each Participant (whether by repurchase by the Sponsor,
pursuant to this Article X or otherwise).

Section 10.8. Effect on Additional Guaranties. The obligations of the Sponsor
pursuant to this Article X are in addition to, and are not intended to supersede or be a
substitute for any other guarantee, suretyship agreement, or instrument which Servicer may hold in
connection with any Loans or other Guaranteed Obligations.

Section 10.9. Reliance
on Guaranty and Purchase Obligation; Disclaimer of Liability.
Sponsor expressly acknowledges and agrees that each of the Servicer and the Participants, in making
its credit decision with regard to the funding of the Loans, will rely solely upon the guaranty and
purchase obligation of Sponsor set forth above and that neither the Servicer nor any Participant is
under any obligation or duty to perform any credit analysis or investigation with regard to the
creditworthiness of any Borrower. In addition, the Servicer expressly disclaims any responsibility
or liability for the authenticity of signatures on any of the Loan Documents (other than the
Servicer’s), the authority of the Persons executing the Loan Documents (other than the Servicer) or
the enforceability or compliance with laws of any of the Loan Documents.

SPONSOR EXPRESSLY ACKNOWLEDGES AND AGREES THAT SPONSOR’S GUARANTY OBLIGATIONS TO PURCHASE
LOANS UNDER THIS AGREEMENT ARE ABSOLUTE AND UNCONDITIONAL. WITHOUT LIMITING THE GENERALITY
OF THE FOREGOING, SPONSOR’S OBLIGATION SHALL NOT BE AFFECTED BY THE EXISTENCE OF ANY DEFAULT
BY ANY BORROWER UNDER THE APPLICABLE LOAN DOCUMENTS, ANY EXCHANGE, RELEASE OR NONPERFECTION
OF ANY LIEN WITH RESPECT TO ANY COLLATERAL SECURING PAYMENT OF ANY LOAN, THE SUBSTITUTION OR
RELEASE OF ANY ENTITY PRIMARILY OR SECONDARILY LIABLE FOR ANY LOAN, ANY LACK OF
ENFORCEABILITY OF ANY LOAN

 

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DOCUMENT, ANY LAW, REGULATION, OR ORDER OF ANY JURISDICTION
AFFECTING ANY LOAN OR LOAN DOCUMENT OR THE RIGHTS OF THE HOLDER THEREOF, ANY CHANGE IN THE
CONDITION OR PROSPECTS OF THE SPONSOR, INCLUDING WITHOUT LIMITATION, INSOLVENCY, BANKRUPTCY,
REORGANIZATION OR SIMILAR PROCEEDING, OR ANY OTHER CIRCUMSTANCE
WHICH MIGHT, BUT FOR THE PROVISIONS OF THIS PARAGRAPH, CONSTITUTE A LEGAL OR EQUITABLE
DISCHARGE OF SPONSOR’S OBLIGATIONS HEREUNDER. SPONSOR’S OBLIGATIONS HEREUNDER SHALL NOT BE
AFFECTED BY ANY SET-OFF OR CLAIM WHICH IT MIGHT HAVE AGAINST THE SERVICER OR ANY
PARTICIPANT, WHETHER ARISING OUT OF THIS AGREEMENT OR OTHERWISE, BUT SUBJECT TO SECTION
10.12 BELOW.

Section 10.10. Reinstatement of Obligations. The obligations of the Sponsor pursuant
to the Operative Documents shall continue to be effective or be reinstated, as the case may be, if
at any time payment or any part thereof, of principal of, interest on or any other amount with
respect to any Loan or any obligation of Sponsor pursuant to the Operative Documents is rescinded
or must otherwise be restored by the Servicer or any Participant upon the bankruptcy or
reorganization of Sponsor, any Borrower or any guarantor or otherwise.

Section 10.11. Right to Bring Separate Action. Nothing contained in this Article
X shall be construed to affect any other right that Sponsor may otherwise have under this
Agreement, or any Operative Document or Loan Documents, at law or in equity to institute an action
or assert a claim against the Servicer or any Participant based upon a breach of Servicer’s or such
Participant’s obligations set forth in the Operative Documents or Loan Documents or to assert a
compulsory counterclaim with respect thereto and any waiver of notice or other matter set forth in
this Article X shall not affect Sponsor’s right to seek damages arising from the failure of
the Servicer to give such notice otherwise required by the terms of the Operative Documents or Loan
Documents.

Section 10.12. Subordination of Liens. The Sponsor hereby subordinates the lien and
priority of the Sponsor’s existing and future liens and other interests, if any, in and to the
Collateral to the Servicer’s existing and future interest in the Collateral under the Loan
Documents notwithstanding the time of attachment of the interests of the Sponsor or the Servicer or
the time the Loan Indebtedness or the Subordinated Debt is incurred. Notwithstanding anything to
the contrary contained in this Agreement, under applicable law or otherwise, in the event that the
liens of the Servicer are at any time unperfected with respect to any or all of the Collateral, the
lack of perfection by the Servicer as to any such Collateral shall not affect the validity,
enforceability or priority of any lien on the Collateral in favor of the Sponsor. In any such
event, the liens of the Sponsor shall have priority over any and all other Liens in favor of any
third party with respect to the Collateral (including, but not limited to any trustee under the
Bankruptcy Code) and the Sponsor shall be, and is hereby constituted, as the Servicer’s agent and
bailee for purposes of perfection of the Liens of the Servicer in the Collateral such that the Lien
in favor of the Sponsor shall be held by the Sponsor for the benefit of the Servicer and the
proceeds of any disposition of the Collateral of any Borrower shall be and are in all respects
subject to the priority of right to payment and satisfaction of first, the Loan Indebtedness of
such Borrower and then, the Subordinated Debt with respect to such Borrower. The lien priorities
provided in this Section 10.12 shall not be altered or otherwise affected by any amendment,
modification, supplement, extension, renewal, restatement or refinancing of either the applicable
Loan Indebtedness or the Subordinated Debt, nor by any action or inaction which either the

 

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Servicer or the Borrowers may take or fail to take in respect of the Collateral, except as
otherwise provided above in this subsection.

Section 10.13. Exercise of Remedies With Respect to Collateral.

(a) Until the Loan Indebtedness of any Borrower has been fully and indefeasibly paid in cash,
the Sponsor shall not, without the prior written consent of the Servicer, ask, demand, assign,
declare a default under, sue for, liquidate, sell, foreclose, set off, collect, accept a surrender,
petition, commence or otherwise initiate any bankruptcy action (or join any other Person in so
doing) against the Borrower or its assets or otherwise realize or seek to realize upon all or any
part of the Collateral without the prior written consent of the Servicer or as expressly authorized
hereunder. In the event that following the occurrence of a Loan Default, the Servicer may from time
to time execute releases, partial releases, terminations, reconveyances, subordinations or other
documents releasing or otherwise limiting the Servicer’s interests in the Collateral in connection
with the exercise of the Servicer’s remedies or the refinancing of the Defaulted Loan, the Sponsor
agrees to execute and deliver at such time such further documents as the Servicer may require to
effect a corresponding change to the Sponsor’s position in the same Collateral.

(b) In the event that the Loan Indebtedness of any Defaulted Loan is not repaid or repurchased
by the Sponsor as set forth herein, the Servicer, on behalf of the Participants, shall have the
exclusive right to exercise and enforce all privileges and rights with respect to the Collateral
according to the Servicer’s discretion and the exercise of its business judgment, including,
without limitation, the exclusive right to take or retake control or possession of such Collateral
and to hold, prepare for sale, process, sell, lease, dispose of, or liquidate such Collateral.

(c) Only the Servicer, acting on behalf of the Participants, shall have the right to restrict
or permit, or approve or disapprove, the sale, transfer or other disposition of Collateral
following the occurrence of a Loan Default where the Loan Indebtedness is not repaid or repurchased
by the Sponsor in accordance with the terms hereof. In the event the Servicer releases its Liens
on all or any part of the Collateral, the Sponsor will, immediately upon the request of the
Servicer, release its Liens upon the same Collateral, but only to the extent such Collateral is
sold or otherwise disposed of by the Borrower with the consent of the Servicer or in a
commercially reasonable manner by the Servicer or its agents. The Sponsor will immediately deliver
such releases, acknowledgments and other documents as the Servicer may require in connection
therewith.

(d) (i) In exercising its rights pursuant to this Section 10.13, the Servicer agrees
that it will not release Liens or Collateral or commence enforcement actions under the Loan
Documents without the direction of the Required Participants. The Servicer agrees to administer
the Loan Documents and the Collateral and to make such demands and give such notices thereunder as
the Required Participants may request and to take such action to enforce the Loan Documents and to
realize upon, collect and dispose of the Collateral as the Required Participants may direct. The
Servicer shall not be required to take any action that is, in its opinion, contrary to law or the
terms of the Loan Documents or the Operative Documents or that would, in the opinion of the
Servicer, subject it or any of its officers, employees, agents or directors to liability and the
Servicer shall not be required to take any action unless and until it is indemnified to its
satisfaction by the Participants for any loss, cost or liability resulting from any required
action.

 

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(ii) The Servicer may at any time request directions from the Required Participants as to
any course of action or other matter relating hereto or relating to any of the Loan Documents.
Except as otherwise provided in this Agreement, directions of the Required Participants shall be
binding on all Participants hereunder.

(iii) Nothing set forth in this Section 10.13 shall modify the rights of the Servicer
set forth in Section 3.1.

Section 10.14. Rights Of Sponsor Upon Payment; Cooperation By Servicer. Upon receipt
by the Servicer of payment in full of the Loan Indebtedness of a Defaulted Borrower by Sponsor,
Sponsor shall be subrogated to the rights of the Servicer with respect to such Loan Indebtedness
and the Servicer shall be deemed to have assigned to Sponsor, and Sponsor shall, to the extent
permitted by applicable law, automatically, immediately and without further action by any Person,
be entitled to, all rights and remedies that the Servicer may have had against the Defaulted
Borrower and any other Persons primarily or secondarily liable on such Loan Indebtedness, including
without limitation the right to resort to any and all Collateral which secures such Loan
Indebtedness, and the Sponsor shall, automatically, immediately and without further action, be
deemed to have assumed all obligations of the Servicer under the Loan Commitment and the Operative
Documents with respect to such Loan Indebtedness, and the Servicer shall be released from any
further obligations with respect thereto. The Servicer agrees that, upon receipt of payment in
full of such Loan Indebtedness, the Servicer shall:

(a) execute on a timely basis, without recourse, representation or warranty of any kind
(except as to its own title), all such instruments and documents as are reasonably requested in
order to evidence Sponsor’s rights hereunder or permit Sponsor to exercise such rights;

(b) permit Sponsor at reasonable times and as often as may be reasonably requested to discuss
with appropriate Servicer employees and officers the Servicer’s experience, relationships, books,
accounts and files and to review the Servicer’s loan files relating to the purchased Defaulted Loan
(and Sponsor hereby agrees to keep all such information confidential); and

(c) otherwise reasonably cooperate with Sponsor in the exercise of Sponsor’s rights.

Sponsor shall reimburse the Servicer for its expenses reasonably and actually incurred in complying
with this Section 10.14.

ARTICLE XI

INDEMNIFICATION

Section 11.1. Indemnification.

(a) In addition to the other rights of the Servicer and the Participants hereunder, Sponsor
hereby agrees to protect, indemnify and save harmless the Servicer, each Participant, and the
officers, directors, shareholders, employees, agents and representatives thereof (each an
“Indemnified Party”) from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs (including, without limitation, reasonable attorney
fees and costs actually incurred), expenses or disbursements of any kind or nature whatsoever,
whether direct, indirect,

 

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consequential or incidental, with respect to or in connection with or
arising out of (i) the execution and delivery of this Agreement, any other Operative Document or
any agreement or instrument contemplated hereby or thereby, including without limitation, the Loan
Documents, the performance by the parties hereto or thereto of their respective obligations
hereunder or thereunder or the consummation of the transactions contemplated hereby, (ii) the
making or administration of the Loan Commitments, the Loans or any of them, including any violation
of federal or state usury or other laws, provided that with respect to clauses (i) and (ii),
Sponsor shall have no obligation to indemnify the Servicer and all Participants with respect to
legal fees and expenses for more than one (1) counsel’s reasonable fees and expenses, (iii) the
enforcement, performance and administration of this Agreement or the Loan Documents or any
powers granted to the Servicer hereunder or under any Loan Documents, (iv) any misrepresentation of
the Sponsor hereunder, (v) any matter arising pursuant to any Environmental Laws as a result of the
Collateral or (vi) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory, whether or
not the Indemnified Party is a named party thereto, except to the extent that such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Indemnified Party
or arise solely from the nonpayment of any Loan Indebtedness notwithstanding the performance by
Sponsor of all of its obligations under the Operative Documents relating to such Loan Indebtedness.

(b) Without limiting the generality of the foregoing, and separate and apart from any
obligation of Sponsor pursuant to Article X, Sponsor agrees to indemnify and hold harmless
each Indemnified Party from and against, and on demand will pay or reimburse any Indemnified Party
for, any and all (i) liabilities arising from a breach of any representation or warranty made by
Sponsor hereunder (whether or not Sponsor’s obligations under Article X have been
satisfied), (ii) any breach by Sponsor of its agreements with the Borrowers, (iii) any overadvance
to any Borrower caused by the transfer of ACH transfer instructions from the Aaron’s Proprietary
System to the Servicer by Sponsor resulting in aggregate advances to such Borrower in excess of the
Loan Commitment to such Borrower, and (iv) any breach by Sponsor of the terms of its MicroACH
Service Agreement with the Servicer or any failure by Sponsor to maintain such agreement in full
force and effect.

(c) This indemnity shall survive the termination of this Agreement.

Section 11.2.
Notice Of Proceedings; Right To Defend.

(a) Any Person with an indemnification claim (or potential claim) pursuant to Section
11.1 (“Potential Indemnitee”) agrees to notify Sponsor (the “Potential Indemnitor”) in writing
within a reasonable time after receipt by it of written notice of the commencement of any
administrative, legal or other proceeding, suit or action by a Person (other than Indemnitee or an
affiliate thereof), if a claim for indemnification may be made by the Potential Indemnitee against
the Potential Indemnitor under this Article XI.

(b) Following receipt by the Potential Indemnitor of any such notice from a Potential
Indemnitee, (an “Indemnity Notice”), the Potential Indemnitor shall be entitled at its own cost and
expense to investigate and participate in the proceeding, suit or action referred to in the
Indemnity Notice. At such time as the Potential Indemnitor shall have acknowledged in writing to
the Potential Indemnitee that it will pay any judgment, damages, or losses incurred by the
Potential Indemnitee in the proceeding,

 

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suit or action referred to in the Indemnity Notice other
than those for gross negligence or willful misconduct on the part of the Potential Indemnitee (at
which time the Potential Indemnitor shall be deemed to be the “Indemnitor” and the Potential
Indemnitee shall be deemed to be the “Indemnitee”), the Indemnitor shall be entitled, to the extent
that it shall desire, to assume the defense of such proceeding, suit or action, with counsel
reasonably satisfactory to the Indemnitee. If the Indemnitor shall so assume the defense of such
proceeding, suit or action, the Indemnitor shall conduct such defense with due diligence and at its
own cost and expense.

(c) In the event that the Indemnitor so assumes the defense of such proceeding, suit or
action, the Indemnitor shall not be entitled to settle such proceeding, suit or action without the
written consent of the Indemnitee, provided that in the event that the Indemnitee does not
consent to such settlement (such consent not to be unreasonably withheld or delayed) (i) the
Indemnitor’s indemnification liability in connection with such proceeding, suit or action shall not
exceed the amount of such proposed settlement and (ii) Indemnitee shall assume and pay all costs
and expenses, including reasonable attorneys’ fees, incurred by Indemnitor from the date that the
Indemnitor presented the Indemnitee the terms of the proposed settlement. An Indemnitor shall not
be liable to an Indemnitee for any settlement of a claim in any proceeding, suit or other action
referred to in an Indemnity Notice, consented to by the Indemnitee without the consent of the
Indemnitor.

(d) A Potential Indemnitor shall be liable to a Potential Indemnitee for a settlement of a
claim in any proceeding, suit or other action referred to in an Indemnity Notice consented to by
such Potential Indemnitee only if (i) such Potential Indemnitor first had a reasonable opportunity
to investigate such claim and participate in such proceeding, suit or action, (ii) the Potential
Indemnitee gave the Potential Indemnitor at least ten (10) Business Days notice of the proposed
terms of such settlement prior to entering into such settlement and (iii) the Potential Indemnitor
did not acknowledge in writing to the Potential Indemnitee, by the expiration of such ten (10)
Business Days period, or such longer period as may be agreed to by the Potential Indemnitee and
Potential Indemnitor that it would pay any judgment, damages or losses incurred by the Potential
Indemnitee in such proceeding suit or action.

Section 11.3. 
Third Party Beneficiaries.  No Persons shall be deemed to be third party
beneficiaries of this Agreement. Except as expressly otherwise provided in this Agreement, this
Agreement is solely for the benefit of Sponsor and the Servicer, the Participants and their
respective successors and permitted assigns, and no other Person shall have any right, benefit,
priority or interest under, or because of the existence of, this Agreement.

ARTICLE XII

SURVIVAL OF LOAN FACILITY

The terms of this Loan Facility Agreement shall survive the termination of the Facility
Commitment hereunder and the termination of any Loan Commitment established pursuant the terms
hereof until the indefeasible payment in full of each of the Loans outstanding hereunder and
Article XIII shall survive the termination of this Agreement upon such repayment.

 

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ARTICLE XIII

CONDITIONS PRECEDENT

This Agreement shall not become effective, the Sponsor shall have no rights under this
Agreement and neither the Servicer nor the Participants shall be obligated to take, fulfill or
perform any action hereunder, until the following conditions have been fulfilled to the
satisfaction of the Servicer:

Section 13.1. Receipt of Documents.

The Servicer shall have received the following, each dated as of the Effective Date, in form
and substance satisfactory to the Servicer and (except in the case of the Fee Letter) the
Participants:

(a) Duly executed counterparts of this Agreement.

(b) Duly executed Servicing Agreement.

(c) Duly executed counterparts of the Guaranty Agreement and the Fee Letter.

(d) A duly executed closing certificate of Sponsor, in form and substance satisfactory to the
Servicer and each Participant.

(e) A duly executed certificate of Sponsor identifying the Authorized Signatories, in form and
substance satisfactory to the Servicer and each Participant;

(f) Copies of the organizational papers of Sponsor and each Guarantor, certified as true and
correct by the Secretaries of State of their respective States of incorporation, and certificates
from the Secretaries of State of such States of incorporation certifying Sponsor’s and each
Guarantor’s good standing as a corporation in such State.

(g) A certificate of the Secretary or Assistant Secretary of each of Sponsor and each
Guarantor certifying (i) the names and true signatures of the officers of Sponsor and each
Guarantor authorized to execute the Guaranty Agreement, this Agreement, the Servicing Agreement and
the other Operative Documents to be delivered hereunder to which each is a party, (ii) the bylaws
of Sponsor and each Guarantor, respectively, and (iii) the resolutions of the Board of Directors of
each of Sponsor and each Guarantor, respectively, approving the Operative Documents to which each
is a party and the transactions contemplated hereby.

(h) A favorable written opinion of Kilpatrick Stockton, LLP, counsel for Sponsor and
Guarantors, in a form satisfactory to the Servicer and each Participant and covering such matters
relating to the transactions contemplated hereby as the Servicer may reasonably request.

(i) the Third Amendment to the Loan Facility Agreement and Guaranty (RIMCO), dated as of May
23, 2008 between the Sponsor and the Servicer, to become effective contemporaneously with this Loan
Facility Agreement; and

 

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(j) All corporate and other proceedings taken or to be taken in connection with the
transactions contemplated hereby and all documents incident hereto or delivered in connection
therewith shall be satisfactory in form and substance to the Servicer and the Participants.

In addition, each of the Participants shall have received a duly executed Participation Certificate
from the Servicer.

Section 13.2.  Effect of Amendment and Restatement. Upon this Loan Facility Agreement
becoming effective pursuant to Section 13.1, from and after the Effective Date:

(a) (1) all terms and conditions of the Existing Loan Facility Agreement and any other
Operative Document, as amended by this Agreement and the other Operative Documents being
executed and delivered on the Effective Date, continue in full force and effect, as amended
hereby, and shall constitute the legal, valid, binding and enforceable obligations of the Sponsor
and its Subsidiaries party thereto to the Servicer and the Participants; (2) the terms and
conditions of the Existing Loan Facility shall be amended as set forth herein and, as so amended,
shall be restated in their entirety, but only with respect to the rights, duties and obligations
among Sponsor, Participants and the Servicer accruing from and after the Effective Date; (3) all
indemnification obligations of the Sponsor and its Subsidiaries under the Existing Loan Facility
Agreement or any other “Operative Document” (as defined in the Existing Loan Facility Agreement)
shall survive the execution and delivery of this Loan Facility Agreement and shall continue in full
force and effect for the benefit of the Servicer, the Participants, and any other Person
indemnified under the Existing Loan Facility Agreement or such other “Operative Document” at any
time prior to the Effective Date; (4) any and all references in the Operative Documents to the
Existing Loan Facility Agreement shall, without further action of the parties, be deemed a
reference to the Existing Loan Facility Agreement, as amended and restated by this Agreement, and
as this Agreement shall be further amended or amended and restated from time to time hereafter and
(5) all Existing Loans, Existing Loan Commitments and Existing Notes shall, to the extent
outstanding on the Effective Date, be deemed to be US Loans, US Loan Commitments and US Notes,
respectively, outstanding under this Agreement and shall not be deemed to be paid, released,
discharged or otherwise satisfied by the execution of this Agreement, and this Agreement shall not
constitute a refinancing, substitution or novation of such Loans, Loan Commitments and Notes, or
any of the other rights, duties and obligations of the parties hereunder; and

(b) (i) each Participant shall be deemed to have sold, assigned, transferred and conveyed to
the Servicer, without recourse or warranty, such Participant’s undivided percentage ownership
interest in the Participant’s Interest as in effect immediately prior to the effectiveness of this
Loan Facility Agreement, (ii) Servicer shall be deemed to have sold, assigned, transferred and
conveyed to the Participants, without recourse or warranty, and each Participant shall be deemed to
have purchased from the Servicer, an undivided percentage ownership interest equal to each
Participant’s Pro Rata Share of the Participating Commitments after giving effect to this Loan
Facility Agreement in the Participant’s Interest, (iii) the Participant Fundings shall be
reallocated by the Participants such that each Participant has funded its Pro Rata Share based upon
its Participating Commitment after giving effect to this Amendment and (iv) the Servicer shall
issue to each Participant a Participation Certificate (which shall be deemed to automatically
replace any existing Participation Certificates) reflecting the relevant Participant’s revised
Participating Commitment Amount.

 

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ARTICLE XIV

THE SERVICER

Section 14.1. Appointment of Servicer as Agent. To the extent of its ownership
interest in the Loans, each Participant hereby designates Servicer as its agent to administer all
matters concerning the Loans and to act as herein specified. Each Participant hereby irrevocably
authorizes the Servicer to take such actions on its behalf under the provisions of this Agreement,
the other Operative Documents, and all other instruments and agreements referred to herein or
therein, and to exercise such powers and to perform such duties hereunder and thereunder as are
specifically delegated to or required of the Servicer by the terms hereof and thereof and such
other powers as are reasonably incidental thereto. The Servicer may perform any of its duties
hereunder by or through its agents or employees.

Section 14.2. Nature of Duties of Servicer. The Servicer shall have no duties or
responsibilities except those expressly set forth in this Agreement and the other Operative
Documents. None of the Servicer nor any of its respective officers, directors, employees or agents
shall be liable for any action taken or omitted by it as such hereunder or in connection herewith,
unless caused by its or their gross negligence or willful misconduct. The Servicer shall not have
by reason of this Agreement a fiduciary relationship in respect of any Participant; and nothing in
this Agreement, express or implied, is intended to or shall be so construed as to impose upon the
Servicer any obligations in respect of this Agreement or the other Operative Documents except as
expressly set forth herein.

Section 14.3. Lack of Reliance on the Servicer.

(a) Independently and without reliance upon the Servicer, each Participant, to the extent it
deems appropriate, has made and shall continue to make (i) its own independent investigation of the
financial condition and affairs of the Credit Parties in connection with the taking or not taking
of any action in connection herewith, and (ii) its own appraisal of the creditworthiness of the
Credit Parties, and, except as expressly provided in this Agreement, the Servicer shall have no
duty or responsibility, either initially or on a continuing basis, to provide any Participant with
any credit or other information with respect thereto, whether coming into its possession before the
making of the Loans or at any time or times thereafter.

(b) The Servicer shall not be responsible to any Participant for any recitals, statements,
information, representations or warranties herein or in any document, certificate or other writing
delivered in connection herewith or for the execution, effectiveness, genuineness, validity,
enforceability, collectibility, priority or sufficiency of this Agreement, the Guaranty Agreement,
and Loan Document or any other documents contemplated hereby or thereby, or the financial condition
of the Credit Parties or any Borrower, or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this Agreement, the
Guaranty Agreement or the other documents contemplated hereby or thereby, or the financial
condition of the Credit Parties or any Borrower, or the existence or possible existence of any
Unmatured Credit Event or Credit Event.

Section 14.4. Certain Rights of the Servicer. If the Servicer shall request
instructions from the Required Participants with respect to any action or actions (including the
failure to act) in connection with this Agreement, the Servicer shall be entitled to refrain from
such act or taking such act, unless and until the Servicer shall have received instructions from
the Required Participants; and the

 

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Servicer shall not incur liability in any Person by reason of so
refraining. Without limiting the foregoing, no Participant shall have any right of action
whatsoever against the Servicer as a result of the Servicer acting or refraining from acting
hereunder in accordance with the instructions of the Required Participants.

Section 14.5. Reliance by Servicer. The Servicer shall be entitled to rely, and shall
be fully protected in relying, upon any note, writing, resolution, notice, statement, certificate,
telex, teletype or telecopier message, cable gram, radiogram, order or other documentary,
teletransmission or telephone message believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person. The Servicer may consult with legal counsel (including
counsel for any Credit Party), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken by it in good faith in accordance
with the advice of such counsel, accountants or experts.

Section 14.6. Indemnification of Servicer. To the extent the Servicer is not
reimbursed and indemnified by the Credit Parties, each Participant will reimburse and indemnify the
Servicer, ratably according to the respective Pro Rata Shares, in either case, for and against any
and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including counsel fees and disbursements) or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against the Servicer in performing its
duties hereunder, in any way relating to or arising out of this Agreement or the other Operative
Documents; provided that no Participant shall be liable to the Servicer for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Servicer’s gross negligence or willful misconduct.

Section 14.7. The Servicer in its Individual Capacity. With respect to its
obligations under this Agreement and the amounts advanced by it, the Servicer shall have the same
rights and powers hereunder as any other Participant and may exercise the same as though it were
not performing the duties specified herein; and the terms “Participants”, “Required Participants”,
or any similar terms shall, unless the context clearly otherwise indicates, include the Servicer in
its individual capacity. The Servicer may accept deposits from, lend money to, and generally
engage in any kind of banking, trust, financial advisory or other business with the Consolidated
Companies or any affiliate of the Consolidated Companies as if it were not performing the duties
specified herein, and may accept fees and other consideration from the Consolidated Companies for
services in connection with this Agreement and otherwise without having to account for the same to
the Participants.

Section 14.8. Holders of Participation Certificates. The Servicer may deem and treat
the payee of any Participation Certificate as the owner thereof for all purposes hereof unless and
until a written notice of the assignment or transfer thereof shall have been filed with the
Servicer. Any request, authority or consent of any Person who, at the time of making such request
or giving such authority or consent, is the holder of any Participation Certificate shall be
conclusive and binding on any subsequent holder, transferee or assignee of such Participation
Certificate or of any Participation Certificate or Certificates issued in exchange therefor.

 

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ARTICLE XV

MISCELLANEOUS

Section 15.1. Notices. All notices, requests and other communications to any party
hereunder shall be in writing (including bank wire, telex, telecopy or similar teletransmission or
writing) and shall be given to such party at its address or applicable teletransmission number set
forth on the signature pages hereof, or such other address or applicable teletransmission number as
such party may hereafter specify by notice to the Servicer and Sponsor. Each such notice, request
or other communication shall be effective (i) if given by telex, when such telex is transmitted to
the telex number specified in this Section 15.1 and the appropriate answerback is received,
(ii) if given by mail, 72 hours after such communication is deposited in the mails with first class
postage prepaid, addressed as aforesaid, (iii) if given by telecopy, when such telecopy is
transmitted to the telecopy number specified in this Section 15.1 and the appropriate
confirmation is received, or (iv) if given by any other means (including, without limitation, by
air courier), when delivered or received at
the address specified in this Section 15.1; provided that notices to the
Servicer shall not be effective until received.

Section 15.2.
Amendments, Etc.  No amendment or waiver of any provision of this
Agreement or the other Operative Documents, nor consent to any departure by any Credit Party
therefrom, shall in any event be effective unless the same shall be in writing and signed by the
Required Participants (and in the case of any amendment, the applicable Credit Party), and then
such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided that no amendment, waiver or consent shall, unless in
writing and signed by all the Participants do any of the following: (i) waive any of the
conditions specified in Section 2.1 or 13.1, (ii) increase the Participating
Commitment Amounts or contractual obligations of the Participants to Servicer or Sponsor under this
Agreement, (iii) reduce the principal of, or interest on, the Participation Certificates or any
fees hereunder, (iv) postpone any date fixed for the payment in respect of principal of, or
interest on, the Participation Certificates or any fees hereunder, (v) agree to release any
Guarantor from its obligations under any Guaranty Agreement or the Sponsor from its obligations
pursuant to this Agreement, (vi) modify the definition of “Required Participants,” or (vii) modify
Section 2.9, Article IV, Article X or this Section 15.2.
Notwithstanding the foregoing, no amendment, waiver or consent shall, unless in writing and signed
by the Servicer in addition to the Participants required hereinabove to take such action, affect
the rights or duties of the Servicer under this Agreement or under any other Operative Document or
Loan Document. In addition, notwithstanding the foregoing, the Servicer and the Sponsor may,
without the consent of or notice to the Participants, enter into amendments, modifications or
waivers with respect to the Servicing Agreement and the Fee Letter as long as such amendments or
modifications do not conflict with the terms of this Agreement. Notwithstanding anything to the
contrary herein, no Defaulting Participant shall have any right to approve or disapprove any
amendment, waiver or consent hereunder, except that the Participating Commitment of such Defaulting
Participant may not be increased or extended, and amounts payable to Defaulting such Participant
hereunder may not be permanently reduced without the consent of such Defaulting Participant (other
than reductions in fees and interest in which such reduction does not disproportionately affect
such Defaulting Participant).

Section 15.3. No Waiver; Remedies Cumulative. No failure or delay on the part of the
Servicer or any Participant in exercising any right or remedy hereunder or under any other
Operative Document, and no course of dealing between any Credit Party and the Servicer or any
Participant shall operate as a waiver thereof, nor shall any single or partial exercise of any
right or remedy hereunder or

 

72

 

under any other Operative Document preclude any other or further
exercise thereof or the exercise of any other right or remedy hereunder or thereunder. The rights
and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies
which the Servicer or any Participant would otherwise have. No notice to or demand on any Credit
Party not required hereunder or under any other Operative Document in any case shall entitle any
Credit Party to any other or further notice or demand in similar or other circumstances or
constitute a waiver of the rights of the Servicer or the Participants to any other or further
action in any circumstances without notice or demand.

Section 15.4. 
Payment of Expenses, Etc.  Sponsor shall:

(a) whether or not the transactions hereby contemplated are consummated, pay all reasonable,
out-of-pocket costs and expenses of the Servicer in the administration (both before and after the
execution hereof and including reasonable expenses actually incurred relating to advice of counsel
as
to the rights and duties of the Servicer and the Participants with respect thereto) of, and in
connection with the preparation, execution and delivery of, preservation of rights under,
enforcement of, and, after a Unmatured Credit Event or Credit Event, refinancing, renegotiation or
restructuring of, this Agreement and the other Operative Documents and the documents and
instruments referred to therein, and any amendment, waiver or consent relating thereto (including,
without limitation, the reasonable fees actually incurred and disbursements of counsel for the
Servicer), and in the case of enforcement of this Agreement or any Operative Document after a
Credit Event, all such reasonable, out-of-pocket costs and expenses (including, without limitation,
the reasonable fees actually incurred and reasonable disbursements and changes of counsel), for any
of the Participants; and

(b) Pay and hold the Servicer and each of the Participants harmless from and against any and
all present and future stamp, documentary, and other similar Taxes with respect to this Agreement,
the Participation Certificates, the Loan Documents and any other Operative Documents, any
collateral described therein, or any payments due thereunder, and save the Servicer and each
Participant harmless from and against any and all liabilities with respect to or resulting from any
delay or omission to pay such Taxes.

Section 15.5. Right of Setoff. In addition to and not in limitation of all rights of
offset that any Participant may have under applicable law, each Participant shall, upon the
occurrence of any Credit Event and whether or not such Participant has made any demand or any
Credit Party’s obligations have matured, have the right to appropriate and apply to the payment of
any Credit Party’s obligations hereunder and under the other Operative Documents, all deposits of
any Credit Party (general or special, time or demand, provisional or final) then or thereafter held
by and other indebtedness or property then or thereafter owing by such Participant or other holder
to any Credit Party, whether or not related to this Agreement or any transaction hereunder.

Section 15.6. Benefit of Agreement; Assignments; Participations.

(a) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
respective successors and assigns of the parties hereto, provided that Sponsor may not assign or
transfer any of its interest hereunder without the prior written consent of the Participants.

 

73

 

(b) Any Participant may make, carry or transfer Loans at, to or for the account of, any of its
branch offices or the office of an Affiliate of such Participant.

(c) Each Participant may assign all of its interests, rights and obligations under this
Agreement (including all of its Participating Commitments and the Funded Participation at the time
owing to it and the Participation Certificates held by it) to any Eligible Assignee;
provided, however, that (i) the Sponsor and the Servicer shall each have given its
prior written consent to such assignment (which consent shall not be unreasonably withheld or
delayed) unless such assignment is to an Affiliate of the assigning Participant or, in the case of
the Sponsor, unless a Credit Event has occurred and is continuing hereunder, (ii) unless the
Participant is assigning its entire Participating Commitment, the Participating Commitment Amount
of the assigning Participant subject to each assignment (determined as of the date the assignment
and acceptance with respect to such assignment is delivered to the Servicer) shall not be less than
the lesser of (x) 50% of the amount of its Original Participating Commitment or (y) $1,000,000, and
(iii) the parties to each such assignment shall execute and deliver to the Servicer an Assignment
and Acceptance, together with the Participation Certificate subject to such assignment and,
unless such assignment is to an Affiliate of such Participant, a processing and recordation
fee of $1,000. Within ten (10) Business Days after receipt of the notice and the Assignment and
Acceptance, Servicer shall execute and deliver, in exchange for the surrendered Participation
Certificate, a new Participation Certificate to the order of the assignor and such assignee in a
principal amount equal to the applicable Participating Commitment Amount retained and assumed by
it, respectively, pursuant to such Assignment and Acceptance. Such new Participation Certificate
shall be in an aggregate principal amount equal to the aggregate principal amount of such
surrendered Participation Certificate, shall be dated the date of the surrendered Participation
Certificate which it replaces, and shall otherwise be in substantially the form attached hereto.

(d) Each Participant may, without the consent of Sponsor or the Servicer, sell participations
to one or more banks or other entities in all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Participating Commitment and the Funded Participation
owing to it), provided, however, that (i) no Participant may sell a participation
in its Participating Commitment (after giving effect to any permitted assignment hereof) unless it
retains an aggregate exposure of 25% of its original Participating Commitment Amount, provided,
however, sales of participations to an Affiliate of such Participant shall not be included in such
calculation; provided, however, no such maximum amount shall be applicable to any
such participation sold at any time there exists an Credit Event hereunder, (ii) such Participant’s
obligations under this Agreement shall remain unchanged, (iii) such Participant shall remain solely
responsible to the other parties hereto for the performance of such obligations, and (iv) the
participating bank or other entity shall not be entitled to the benefit (except through its selling
Participant) of the cost protection provisions contained in Article II of this Agreement,
and (v) Sponsor, Servicer and the other Participants shall continue to deal solely and directly
with each Participant in connection with such Participant’s rights and obligations under this
Agreement and the other Operative Documents, and such Participant shall retain the sole right to
enforce the obligations of Sponsor relating to the Loans and to approve any amendment, modification
or waiver of any provisions of this Agreement (other than an amendment requiring approval of 100%
of the Participants). Each Participant shall promptly notify in writing the Servicer and the
Sponsor of any sale of a participation hereunder and shall certify to Sponsor and Servicer its
compliance with the terms hereof.

 

74

 

(e) Any Participant or participant may, in connection with the assignment or participation or
proposed assignment or participation, pursuant to this Section 15.6, disclose to the
assignee or participant or proposed assignee or participant any information relating to Sponsor or
the other Consolidated Companies furnished to such Participant by or on behalf of Sponsor or any
other Consolidated Company. With respect to any disclosure of confidential, non-public,
proprietary information, such proposed assignee or participant shall agree to use the information
only for the purpose of making any necessary credit judgments with respect to this credit facility
and not to use the information in any manner prohibited by any law, including without limitation,
the securities laws of the United States. The proposed participant or assignee shall agree not to
disclose any of such information except (i) to directors, employees, auditors or counsel to whom it
is necessary to show such information, each of whom shall be informed of and shall acknowledge the
confidential nature of the information, (ii) in any statement or testimony pursuant to a subpoena
or order by any court, governmental body or other agency asserting jurisdiction over such entity,
or as otherwise required by law (provided prior notice is given to Sponsor and the Servicer unless
otherwise prohibited by the subpoena, order or law), and (iii) upon the request or demand of any
regulatory agency or authority with proper jurisdiction. The proposed participant or assignee
shall further agree to return all documents or other written material and copies thereof received
from any Participant, the Servicer or Sponsor relating to such confidential information unless
otherwise properly disposed of by such entity.

(f) Any Participant may at any time assign all or any portion of its rights in this Agreement
to a Federal Reserve Bank; provided that no such assignment shall release the Participant
from any of its obligations hereunder.

(g) Notwithstanding any provision of this Agreement to the contrary, the Servicer, together
with its Affiliates, shall at all times retain a Participating Commitment in an amount at least
equal to 20% of the aggregate principal amount of all outstanding Loan Commitments.

Section 15.7. Governing Law; Submission to Jurisdiction.

(a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED
IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW
PRINCIPLES THEREOF) OF THE STATE OF GEORGIA.

(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER OPERATIVE
DOCUMENT MAY BE BROUGHT IN THE SUPERIOR COURT OF FULTON COUNTY, GEORGIA, OR ANY OTHER COURT OF THE
STATE OF GEORGIA OR OF THE UNITED STATES OF AMERICA FOR THE NORTHERN DISTRICT OF GEORGIA, AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, SPONSOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVE TRIAL BY JURY, AND SPONSOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION,
INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR
PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS.

 

75

 

(c) Nothing herein shall affect the right of the Servicer, any Participant, or any Credit
Party to commence legal proceedings or otherwise proceed against Sponsor in any other jurisdiction.

Section 15.8. Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all of which shall together constitute one and the
same instrument.

Section 15.9. Severability. In case any provision in or obligation under this
Agreement or the other Operative Documents shall be invalid, illegal or unenforceable, in whole or
in part, in any jurisdiction, the validity, legality and enforceability of the remaining provisions
or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way
be affected or impaired thereby.

Section 15.10. Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be
permitted by an exception to, or be otherwise within the limitation of, another covenant,
shall not avoid the occurrence of a Unmatured Credit Event or an Credit Event if such action is
taken or condition exists.

Section 15.11. No Joint Venture. Nothing in this Agreement, the Servicing Agreement or
any of the Loan Documents shall be construed as constituting Sponsor and the Servicer or any
Participant as partners or joint venturers or as creating the relationship of employer and
employee, master and servant, principle and agent, or franchisor or franchisee between Sponsor and
the Servicer or any Participant. Neither Sponsor nor Servicer or any Participant shall have any
right or authority to bind the other party or to assume or create any obligation or responsibility,
express or implied, on behalf of the other party or in the other party’s name. All rights, duties
and obligations under this Agreement and the Operative Documents are exclusively for the benefit of
Sponsor and the Servicer and Participants, as the case may be, and shall not be deemed to affect
any agreement between either of such parties and any third party (including, without limitation,
any Borrower).

Section 15.12. Repurchase Right. Sponsor may at any time (upon thirty (30) days’ prior
written notice to Servicer) purchase from Servicer all Loans and Loan Commitments and all rights,
titles and interests of the Servicer and the Participants in and to the Loan Documents and the
Collateral relating thereto for a purchase price (payable in immediately available funds) equal to
the aggregate Loan Indebtedness, plus all amounts otherwise owing by the Sponsor pursuant to the
Operative Documents, and the Servicer shall assign, without recourse, representation or warranty
(except as to its own title), its right, title and interest therein to Sponsor upon the Servicer’s
receipt of such purchase price. Thereafter, Servicers shall have no responsibility with respect to
any Loans or Loan Commitments.

Section 15.13. Confidentiality. Each Participant agrees that it will maintain in
confidence and will not disclose, publish or disseminate, to any Person, any confidential
information which it has or shall acquire during the term of this Agreement relating to the
business, operations and condition, financial or otherwise of the Sponsor or any Borrower, except
that such information may be disclosed by such Participant if and to the extent that:

 

76

 

(a) such information is in the public domain at the time of disclosure;

(b) such information is required to be disclosed by subpoena or similar process of applicable
law or regulations;

(c) such information is required to be disclosed to any regulatory or administrative body or
commission to whose jurisdiction such Participant or any of its Affiliates may be subject;

(d) such information is disclosed to counsel, auditors or other professional advisors to such
Participant or to affiliates of such Participant provided that such affiliates agree to keep such
information confidential as set forth herein;

(e) such information is disclosed with the prior written consent of the Sponsor or the
relevant Borrower, as the case may be, which consent shall not be unreasonably withheld or delayed;

(f) such information is disclosed in connection with any litigation or dispute between such
Participant and the Sponsor or any Borrower concerning the Operative Documents or the Loan
Documents of such Borrower;

(g) such information is disclosed in connection with a prospective assignment, grant of a
participation interest in or other transfer by such Participant of any of its interest in the
Operative Documents, provided that the Person to whom such information shall be disclosed shall
have agreed to keep such information confidential as set forth herein;

(h) such information was in the possession of such Person or such Person’s affiliates without
obligation of confidentiality prior to such Participant furnishing it to such Person; or

(i) such information is received by such Participant, without restriction as to its disclosure
or use, from a Person, who, to such Participant’s knowledge or reasonable belief, was not
prohibited from disclosing it by any duty of confidentiality.

(j) Each Participant agrees to use its best efforts to give the Sponsor prompt notice of any
subpoena or similar process referred to in clause (ii) above, provided that such Participant shall
have no liability in event such notice is not given.

Section 15.14. Headings Descriptive; Entire Agreement. The headings of the several
sections and subsections of this Agreement are inserted for convenience only and shall not in any
way affect the meaning or construction of any provision of this Agreement. This Agreement, the
other Operative Documents, and the agreements and documents required to be delivered pursuant to
the terms of this Agreement constitute the entire agreement among the parties hereto and thereto
regarding the subject matters hereof and thereof and supersede all prior agreements,
representations and understandings related to such subject matters.

Section 15.15. 
Patriot Act. The Servicer and each Participant hereby notifies the
Sponsor and each of its Subsidiaries that pursuant to the requirements of the USA PATRIOT Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is
required to obtain, verify and record information that identifies each of the Sponsor and its
Subsidiaries, which information includes the

 

77

 

name and address of the Sponsor or such Subsidiary and
other information that will allow such Participant or the Servicer, as applicable, to identify the
Sponsor or such Subsidiary in accordance with the Patriot Act.

[Signatures Set Forth on Next Page]

 

78

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

	 	 	 	 	 	 	 
	Address for Notices:	 	AARON’S, INC.
	 
	 	 	 	 	 	 
	309 East Paces Ferry Road, NE

	 	By:
	 	/s/ Gilbert L. Danielson	 	 
	Atlanta, Georgia 30305

	 	 	 	 

Gilbert L. Danielson
	 	 
	Attn: Gilbert L. Danielson

	 	 	 	Executive Vice President and	 	 
	Telecopy: 404-240-6584

	 	 	 	Chief Financial Officer	 	 

[SIGNATURE PAGE TO SECOND AMENDED

AND RESTATED LOAN FACILITY AGREEMENT]

 

 

 

	 	 	 	 	 	 	 	 	 
	Address for Notices:	 	SUNTRUST BANK, as individually

and as Servicer	 	 
	 
	 	 	 	 	 	 	 	 
	303 Peachtree Street NE, 3rd Floor
	 	 	 	 	 	 	 	 
	Atlanta, Georgia 30308
	 	 	 	 	 	 	 	 
	Attention: Aaron’s Program Manager	 	By:	 	/s/ Sharon Lawrence	 	 
	 	 	 	 	 	 	 
	Telecopy No. (404) 724-3716

	 	 	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 	 	 
	with a copy to:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	303 Peachtree Street NE, 3rd Floor
	 	 	 	 	 	 	 	 
	Atlanta, Georgia 30308
	 	 	 	 	 	 	 	 
	Attention: Don Besch
	 	 	 	 	 	 	 	 

[SIGNATURE PAGE TO SECOND AMENDED

AND RESTATED LOAN FACILITY AGREEMENT]

 

 

 

	 	 	 	 	 	 	 
	Address for Notices:	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 	 	 
	Global Capital Markets
	 	 	 	 	 	 
	1339 Chestnut St., PA 4843	 	By:	 	/s/ Fareed Ajani
	 	 	 	 	 
	Philadelphia, PA 19107

	 	 	 	Name:
	 	Fareed Ajani
	Attn: Anthony Braxton

	 	 	 	Title:
	 	Director
	Telecopy: (267) 321-6700
	 	 	 	 	 	 

[SIGNATURE PAGE TO SECOND AMENDED

AND RESTATED LOAN FACILITY AGREEMENT]

 

 

 

	 	 	 	 	 	 	 
	Address for Notices:	 	REGIONS BANK
	 
	 	 	 	 	 	 
	One Glenlake Parkway
	 	 	 	 	 	 
	Suite 400	 	By:	 	/s/ Scott Rossman
	 	 	 	 	 
	Atlanta, GA 30328

	 	 	 	Name:
	 	Scott Rossman
	Attn: Scott Rossman, Vice President

	 	 	 	Title:
	 	Vice President
	Telecopy: (770) 481-4395
	 	 	 	 	 	 

[SIGNATURE PAGE TO SECOND AMENDED

AND RESTATED LOAN FACILITY AGREEMENT]

 

 

 

	 	 	 	 	 	 	 
	Address for Notices:	 	BRANCH BANKING
& TRUST CO.
 
	271 17th St., NW Ste 700	 	By:	 	/s/ Brantley Echols
	 	 	 	 	 
	Atlanta, GA 30363-1017

	 	 	 	Name:
	 	Brantley Echols
	Attn: Brantley Echols

	 	 	 	Title:
	 	Senior Vice President
	Telecopy: (404) 442-5148
	 	 	 	 	 	 

[SIGNATURE PAGE TO SECOND AMENDED

AND RESTATED LOAN FACILITY AGREEMENT]

 

 

 

	 	 	 	 	 	 	 
	Address for Notices:	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 	 	 
	Bank of America, N.A.	 	By:	 	/s/ Van Brandenburg
	 	 	 	 	 
	600 Peachtree St., NE

	 	 	 	Name:
	 	Van Brandenburg
	GA1-006-13-15, 13th Floor

	 	 	 	Title:
	 	Vice President
	Atlanta, GA 30308
	 	 	 	 	 	 
	Attn: Van Brandenburg, VP
	 	 	 	 	 	 
	Telecopy: (404) 607-6343
	 	 	 	 	 	 

[SIGNATURE PAGE TO SECOND AMENDED

AND RESTATED LOAN FACILITY AGREEMENT]

 

 

 

Schedule 1.1(a)

PRICING GRID

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Participant	 
	 	 	 	 	 	 	 	 	 	 	 	 	Unused	 
	 	 	Total Debt to EBITDA	 	US LIBOR	 	 	Canadian	 	 	Commitment Fee	 
	Level	 	Ratio	 	Margin	 	 	LIBOR Margin	 	 	Percentage	 
	I
	 	< 1.50:1.00	 	 	1.90	%	 	 	1.90	%	 	 	0.25	%
	II
	 	3
 1.50:1.00 but < 2.00:1.00	 	 	2.15	%	 	 	2.15	%	 	 	0.375	%
	III
	 	3
  2.00:1.00 but < 2.50:1.00	 	 	2.40	%	 	 	2.40	%	 	 	0.50	%
	IV
	 	3
 2.50:1.00	 	 	2.65	%	 	 	2.65	%	 	 	0.50	%

 

 

 

Schedule 1.1(b)

Participant Commitments

	 	 	 	 	 
	Participant	 	Participating Commitment Amount	 
	 
	 	 	 	 
	SunTrust Bank
	 	$	45,000,000.00	 
	Wells Fargo Bank, N.A.
	 	$	35,000,000.00	 
	Regions Bank
	 	$	45,000,000.00	 
	Branch Banking & Trust Co.
	 	$	45,000,000.00	 
	Bank of America, N.A.
	 	$	30,000,000.00	 
	 	 	 	 
	 
	 	 	 	 
	Total:
	 	$	200,000,000.00

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