Document:

Exhibit
10.1

 

FOURTH AMENDMENT TO

CREDIT AGREEMENT

 

FOURTH AMENDMENT TO CREDIT AGREEMENT, dated as of July
30, 2004 (this “Amendment”), to the Credit Agreement referred to below
by and among APPLIED EXTRUSION TECHNOLOGIES, INC., a Delaware corporation (the
“Borrower”); the other Credit Parties signatory hereto; GENERAL ELECTRIC
CAPITAL CORPORATION, a Delaware corporation (in its individual capacity, “GE
Capital”), for itself, as Lender, and as Agent for Lenders; and the other
Lenders signatory hereto.

 

W  I
T  N  E  S  S  E  T  H

 

WHEREAS, the Borrower, the other Credit Parties, the
Agent, and the Lenders are parties to that certain Credit Agreement, dated as
of October 3, 2003 (as amended, supplemented or otherwise modified from time to
time, prior to the date hereof, the “Credit Agreement”);

 

WHEREAS, Borrower has requested that Agent and the
Lenders agree to amend the Credit Agreement to provide, among other things,
that failure to pay the interest on the Senior Notes due on July 1, 2004 shall
not constitute a Default or Event of Default, so long as such payment is made
on or prior to the Waiver Termination Date (as defined below); and

 

WHEREAS, the Borrower, the Agent and the Lenders have
agreed to such request and agree to amend certain provisions of the Credit Agreement
in the manner, and on the terms and conditions, provided for herein.

 

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

 

1.             Certain Definitions.  Capitalized terms used herein and not otherwise defined shall have
the meanings ascribed to them in the Credit Agreement.

 

2.             Amendments to Credit Agreement.  As of the Amendment Effective Date (as
defined below), Section 8.1(l) of the Credit Agreement shall be amended by
deleting such Section in its entirety and inserting the following Section
8.1(l) in lieu thereof: “(l) Any Change of Control or Senior Note Remedy Event
occurs.”

 

3.             Amendment to Annex A to the Credit Agreement .  As of the Fourth Amendment Effective Date
(as defined below), Annex A to the Credit Agreement shall be amended as
follows:

 

(a)           by deleting the definition of “Default”
therein and inserting the following definition in lieu thereof:

 

“Default”
means any event that, with the passage of time or notice or both, would, unless
cured or waived, become an Event of Default.

 

 

(b)           by inserting the following new
definitions therein in appropriate alphabetical order

 

“Senior Note Remedy Event” shall mean any of
the following by any holders of the Senior Notes: (a) the acceleration of the
Senior Notes or the taking of actions to collect or enforce all or any part of
the Senior Notes or any claims in respect thereof against any Credit Party or
any of its property or assets, (b) the application of any property or assets of
any Credit Party to the Senior Notes or the repossession of, foreclosure on, or
the exercise of any other remedy (judicially or nonjudicially) with respect to
any Credit Party or any of its property or assets; (c) the taking of control or
possession of, or the exercise of any right of setoff with respect to, any
property or assets of any Credit Party or the sale or other disposition of any
interest in such property or assets; (d) the taking of any action to interfere
with any rights in respect of such property or assets of the Agent and Lenders
or their ability to realize upon or otherwise deal with such property or
assets; (e) the commencement or maintenance of any action, suit or other
proceeding at law, in equity or otherwise in furtherance of any of the
foregoing or to otherwise enforce rights against any Credit Party or any of its
property or assets or to direct the owner of such property or assets to sell or
otherwise dispose of any interest therein; or (f) the commencement any case or
proceeding described in clauses (i) through (iii) of Section 8.1(h).

 

“Third
Amendment” means the Third Amendment to the Credit Agreement, dated as of
June 30, 2004, among the Borrower, the other Credit Parties, the Agent, and the
Lenders.

 

“Waiver Termination
Date” shall mean September 1, 2004.

 

4.             Defaults; Conditions to Funding.

 

(a)           Agent and Requisite Lenders agree
that, notwithstanding the provisions of 
(i) Section 1.5(d) of the Credit Agreement, (ii) Section 2.2(c) of the
Credit Agreement, (iii) Section 8.2 of the Credit Agreement, and (iv) clause
(c) of Annex C to the Credit Agreement to the contrary, for purposes of (i)
Section 1.5(d) of the Credit Agreement, (ii) Section 2.2(c) of the Credit
Agreement, (iii) Section 8.2 of the Credit Agreement, and (iv) clause (c) of
Annex C to the Credit Agreement, the failure of the Borrower to make payment of
interest on the Senior Notes due on July 1, 2004 shall not constitute a
“Default” or “Event of Default” for the period beginning from the Amendment
Effective Date (as defined in the Third Amendment) through the Waiver
Termination Date), so long as such payment is made on or prior to the Waiver
Termination Date and, with respect to clause (iv) above, prior to the payment
of such interest, Borrower and AET Canada transfers or cause to be transferred
prior to the end of each business day from the AET Canada Account and/or the
Disbursement Accounts of AET Canada the aggregate balance in (or held for the
benefit of) AET Canada in the AET Canada Account and such Disbursement Accounts
in excess of CDN$1,500,000 to a Blocked Account of Borrower (or, if
established, the Concentration Account).

 

(b)           Agent and Requisite Revolving Lenders
agree that (i) with respect to the provisions of Section 2.2(a) of the Credit
Agreement, the failure of any representation or warranty to be true in any Loan
Document, solely as a result of the Borrower’s failure to make payment of
interest on the Senior Notes due on July 1, 2004 shall not limit any Lender’s

 

2

 

obligations to fund any Advance, convert or continue any Loan as a
LIBOR Loan or incur any Letter of Credit Obligation and (ii) with respect to
the provisions of Section 2.2(b) of the Credit Agreement, Borrower’s failure to
make payment of interest on the Senior Notes due on July 1, 2004 shall not
alone, without the presence of any other facts, events or circumstances
(whether arising as a result of such failure or otherwise), be deemed to create
a Material Adverse Effect, in the case of each of clauses (i) and (ii) of this
sentence, for the period beginning from the Amendment Effective Date (as
defined in the Third Amendment) through the Waiver Termination Date) and so
long as such payment is made on or prior to the Waiver Termination Date.

 

(c)           Agent and Requisite Lenders agree
that the execution and delivery by Borrower and its Subsidiaries of a
restructuring agreement with the holders of the Senior Notes (which shall set
forth an agreement in principal with the participating holders of the Senior
Notes for the restructuring of the Senior Notes substantially on the terms
previously disclosed by the Borrower to the Agent) shall not alone, without the
presence of any other facts, events or circumstances, constitute an Event of
Default under clause (iv) of Section 8.1(i) of the Credit Agreement, for the
period beginning on the Fourth Amendment Effective Date through the Waiver
Termination Date), provided that nothing set forth herein shall be construed to
constitute the consent of Agent or any Lender to any action or transaction by
any Credit Party pursuant to, or as contemplated by, any such restructuring
agreement.

 

(d)           This Section 4 supercedes and
replaces the provision of Section 5 of the Third Amendment.

 

5.             Ratification of Credit Agreement; Remedies.

 

(a)           Except as expressly provided for, and
on the terms and conditions set forth, herein, the Credit Agreement and the
other Loan Documents shall continue to be in full force and effect in
accordance with their respective terms and shall be unmodified.  In addition, this Amendment shall not be
deemed a waiver of any term or condition of any Loan Document by the Agent or
the Lenders with respect to any right or remedy which the Agent or the Lenders
may now or in the future have under the Loan Documents, at law or in equity or
otherwise or be deemed to prejudice any rights or remedies which the Agent or
the Lenders may now have or may have in the future under or in connection with
any Loan Document or under or in connection with any Default or Event of
Default which may now exist or which may occur after the date hereof.  The Credit Agreement and all other Loan
Documents are hereby in all respects ratified and confirmed.

 

(b)           This Amendment shall constitute a
Loan Document.  The breach by any Credit
Party of any representation, warranty, covenant or agreement in this Amendment
shall constitute an immediate Event of Default hereunder and under the other
Loan Documents.

 

6.             Representations and Warranties.  The Borrower and the Credit Parties hereby
represent and warrant to the Agent and Lenders that:

 

(a)           The execution, delivery and
performance of this Amendment and the performance of the Credit Agreement as
amended by this Amendment (the “Amended Credit

 

3

 

Agreement”) by the Borrower and the
other Credit Parties:  (i) are within
their respective organizational powers; (ii) have been duly authorized by all
necessary corporate and shareholder action; (iii) are not in contravention of
any provision of their respective certificates or articles of incorporation or
by-laws or other organizational documents; (iv) do not violate any law or
regulation, or any order or decree of any court or Governmental Authority; (v)
do not conflict with or result in the breach or termination of, constitute a
default under or accelerate or permit the acceleration of any performance
required by, any indenture, mortgage, deed of trust, lease, agreement or other
instrument to which the Borrower or any Credit Party is a party or by which the
Borrower or any Credit Party or any of its property is bound; (vi) do not
result in the creation or imposition of any Lien upon any of the property of
the Borrower or any Credit Party other than those in favor of Agent pursuant to
the Loan Documents; and (vii) do not require the consent or approval of any
Governmental Authority or any other Person.

 

(b)           This Amendment has been duly executed
and delivered by or on behalf of the Borrower and the other Credit Parties.

 

(c)           Each of this Amendment and the
Amended Credit Agreement constitutes a legal, valid and binding obligation of
the Borrower and the other Credit Parties enforceable against each of them in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditor’s rights generally and general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

(d)           No Default or Event of Default has occurred
and is continuing both before and after giving effect to this Amendment.

 

(e)           No action, claim or proceeding is now
pending or, to the knowledge of the Borrower and the other Credit Parties,
threatened against the Borrower or the other Credit Parties, at law, in equity
or otherwise, before any court, board, commission, agency or instrumentality of
any federal, state, or local government or of any agency or subdivision
thereof, or before any arbitrator or panel of arbitrators, (i) which challenges
the Borrower’s or the other Credit Parties’ right, power, or competence to
enter into this Amendment or, to the extent applicable, perform any of its
obligations under this Amendment, the Amended Credit Agreement or any other
Loan Document, or the validity or enforceability of this Amendment, the Amended
Credit Agreement or any other Loan Document or any action taken under this
Amendment, the Amended Credit Agreement or any other Loan Document or (ii)
which, if determined adversely, is reasonably likely to have or result in a
Material Adverse Effect.  To the
knowledge of the Borrower and each Credit Party, there does not exist a state
of facts which is reasonably likely to give rise to such proceedings.

 

(f)            The representations and warranties
of the Borrower and the other Credit Parties contained in the Amended Credit
Agreement and each other Loan Document shall be true and correct on and as of
the date hereof and the Fourth Amendment Effective Date with the same effect as
if such representations and warranties had been made on and as of such date,
except that any such representation or warranty which is expressly made only as
of a specified

 

4

 

date need be true only as of such date.

 

7.             Outstanding Indebtedness.  The Borrower and the
other Credit Parties hereby acknowledge and agree that as of July 28, 2004, (i)
the aggregate outstanding amount of the Revolving Credit Advances is $45,037,612, (ii) the aggregate
outstanding amount of Letter of Credit Obligations is $125,000.00, and (iii) the aggregate outstanding principal amount
of the Term Loan is $45,315,500, and that such principal amounts are payable
pursuant to the Credit Agreement without defense, offset, withholding,
counterclaim or deduction of any kind.

 

8.             Fees and Expenses  The Borrower hereby reconfirms its obligations pursuant to
Section 11.3(b) of the Credit Agreement to reimburse Agent for all
out-of-pocket fees, costs and expenses, including the reasonable fees, costs
and expenses of counsel, consultants, auditors or other advisors, incurred in
connection incurred with the negotiation, preparation, execution and delivery
of this Amendment and all other documents and instruments delivered in
connection herewith.

 

9.             GOVERNING LAW. 
THIS AMENDMENT, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE
UNITED STATES OF AMERICA.

 

10.           Effectiveness.  This Amendment shall become effective as of
the date hereof (the “Fourth Amendment Effective Date”) only upon
satisfaction in full in the judgment of the Agent of each of the following conditions
on or before July 30, 2004:

 

(a)           Amendment.  Agent shall have received facsimile copies
of this Amendment duly executed and delivered by the Agent, the Requisite
Lenders, the Requisite Revolving Lenders, the Borrower and each Credit Party.

 

(b)           Representations and Warranties.  All representations and warranties of or on
behalf of the Borrower and each Credit Party in this Amendment and all the
other Loan Documents shall be true and correct in all respects with the same
effect as though such representations and warranties had been made on and as of
the date hereof and on and as of the date that the other conditions precedent
in this Section 11 have been satisfied, except to the extent that
any such representation or warranty expressly relates to an earlier date.

 

11.           Counterparts.  This Amendment may be executed in any number
of counterparts, each of which shall be an original with the same effect as if
the signatures thereto and hereto were upon the same instrument.

 

[SIGNATURE PAGES FOLLOW]

 

5

 

IN WITNESS WHEREOF,
each of the parties hereto has executed this Amendment as of date and year
first written above.

 

	
   

  	
  BORROWER

  
	
   

  	
   

  
	
   

  	
  APPLIED
  EXTRUSION TECHNOLOGIES,

  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P.
  Crescenzo

  	
   

  
	
   

  	
  Name:

  	
  Brian P.
  Crescenzo

  
	
   

  	
  Title:

  	
  Vice President,
  Secretary and Chief

  Financial Officer

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  
	
   

  	
  CORPORATION,

  
	
   

  	
  as Agent and
  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James H.
  Kaufman

  	
   

  
	
   

  	
   

  	
  Duly Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher
  Cox

  	
   

  
	
   

  	
   

  	
  Duly Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
  BLACK
  DIAMOND INTERNATIONAL

  FUNDING, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan Corkish

  	
   

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
  TRS
  1, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah O’Keeffe

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  MERRILL
  LYNCH CAPITAL, a division of

  Merrill Lynch Business Financial Services Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey L. Wilkison

  	
   

  
	
   

  	
  Title:

  	
  Director, Senior Credit
  Officer

  
											

 

 

The following
Persons are signatories to this Agreement in their capacity as Credit Parties
and not as Borrower.

 

	
   

  	
  APPLIED EXTRUSION TECHNOLOGIES

  (CANADA) INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P.
  Crescenzo

  	
   

  
	
   

  	
  Name:

  	
  Brian P.
  Crescenzo

  
	
   

  	
  Title:

  	
  Vice President
  Finance,

  Secretary and Treasurer

  
	
   

  	
   

  
	
   

  	
  APPLIED EXTRUSION TECHNOLOGIES

  LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P.
  Crescenzo

  	
   

  
	
   

  	
  Name:

  	
  Brian P.
  Crescenzo

  
	
   

  	
  Title:

  	
  Vice President
  Finance,

  Secretary and TreasurerExhibit 10(a)

 

REVOLVING CREDIT AGREEMENT

 

dated as of May 28, 2004

 

among

 

AARON RENTS, INC.

as Borrower,

 

AARON RENTS, INC. PUERTO RICO

as Co-Borrower

 

THE LENDERS FROM TIME TO TIME PARTY HERETO

 

SUNTRUST BANK

as Administrative Agent

 

and

 

WACHOVIA BANK, NATIONAL ASSOCIATION

 

as Syndication Agent

 

 

 

SUNTRUST EQUITABLE SECURITIES CORPORATION

as Arranger and Book Manager

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I
  DEFINITIONS; CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.1.

  	
  DEFINITIONS

  	
   

  
	
  SECTION 1.2.

  	
  CLASSIFICATIONS
  OF LOANS AND BORROWINGS

  	
   

  
	
  SECTION 1.3.

  	
  ACCOUNTING TERMS AND
  DETERMINATION

  	
   

  
	
  SECTION 1.4.

  	
  TERMS GENERALLY

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  AMOUNT AND TERMS OF
  THE COMMITMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.1.

  	
  GENERAL DESCRIPTION
  OF FACILITIES

  	
   

  
	
  SECTION 2.2.

  	
  REVOLVING LOANS

  	
   

  
	
  SECTION 2.3.

  	
  PROCEDURE FOR
  REVOLVING BORROWINGS

  	
   

  
	
  SECTION 2.4.

  	
  SWINGLINE COMMITMENT

  	
   

  
	
  SECTION 2.5.

  	
  PROCEDURE FOR
  SWINGLINE BORROWING; ETC

  	
   

  
	
  SECTION 2.6.

  	
  FUNDING OF BORROWINGS

  	
   

  
	
  SECTION 2.7.

  	
  INTEREST ELECTIONS

  	
   

  
	
  SECTION 2.8.

  	
  OPTIONAL
  REDUCTION AND TERMINATION OF COMMITMENTS

  	
   

  
	
  SECTION 2.9.

  	
  REPAYMENT OF LOANS

  	
   

  
	
  SECTION 2.10.

  	
  EVIDENCE OF INDEBTEDNESS

  	
   

  
	
  SECTION 2.11.

  	
  PREPAYMENTS

  	
   

  
	
  SECTION 2.11.

  	
  PREPAYMENTS TC

  	
   

  
	
  SECTION 2.12.

  	
  INTEREST ON LOANS

  	
   

  
	
  SECTION 2.13.

  	
  FEES

  	
   

  
	
  SECTION 2.14.

  	
  COMPUTATION OF
  INTEREST AND FEES

  	
   

  
	
  SECTION 2.15.

  	
  INABILITY TO
  DETERMINE INTEREST RATES

  	
   

  
	
  SECTION 2.16.

  	
  ILLEGALITY

  	
   

  
	
  SECTION 2.17.

  	
  INCREASED COSTS

  	
   

  
	
  SECTION 2.18.

  	
  FUNDING INDEMNITY

  	
   

  
	
  SECTION 2.19.

  	
  TAXES

  	
   

  
	
  SECTION 2.20.

  	
  PAYMENTS
  GENERALLY; PRO RATA TREATMENT; SHARING OF SET-OFFS

  	
   

  
	
  SECTION 2.21.

  	
  MITIGATION OF OBLIGATIONS

  	
   

  
	
  SECTION 2.22.

  	
  LETTERS OF CREDIT

  	
   

  
	
  SECTION 2.23.

  	
  GUARANTY OBLIGATIONS;
  WAIVERS.

  	
   

  
	
  SECTION 2.24.

  	
  SAVINGS CLAUSE.

  	
   

  
	
  SECTION 2.25.

  	
  INCREASE IN COMMITMENT.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  CONDITIONS
  PRECEDENT TO LOANS AND LETTERS OF CREDIT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.1.

  	
  CONDITIONS TO EFFECTIVENESS

  	
   

  
	
  SECTION 3.2.

  	
  EACH CREDIT EVENT

  	
   

  
	
  SECTION 3.3.

  	
  DELIVERY OF DOCUMENTS

  	
   

  
	
  SECTION 3.4.

  	
  TERMINATION
  OF EXISTING CREDIT AGREEMENT.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.1.

  	
  EXISTENCE; POWER

  	
   

  
	
  SECTION 4.2.

  	
  ORGANIZATIONAL
  POWER; AUTHORIZATION

  	
   

  
	
  SECTION 4.3.

  	
  GOVERNMENTAL
  APPROVALS; NO CONFLICTS

  	
   

  
	
  SECTION 4.4.

  	
  FINANCIAL STATEMENTS

  	
   

  
	
  SECTION 4.5.

  	
  LITIGATION AND
  ENVIRONMENTAL MATTERS

  	
   

  
	
  SECTION 4.6.

  	
  COMPLIANCE WITH
  LAWS AND AGREEMENTS

  	
   

  
	
  SECTION 4.7.

  	
  INVESTMENT COMPANY ACT,
  ETC.

  	
   

  
	
  SECTION 4.8.

  	
  TAXES

  	
   

  
	
  SECTION 4.9.

  	
  MARGIN REGULATIONS

  	
   

  
	
  SECTION 4.10.

  	
  ERISA

  	
   

  

 

 

	
  SECTION 4.11.

  	
  OWNERSHIP OF PROPERTY

  	
   

  
	
  SECTION 4.12.

  	
  DISCLOSURE

  	
   

  
	
  SECTION 4.13.

  	
  LABOR RELATIONS

  	
   

  
	
  SECTION 4.14.

  	
  SUBSIDIARIES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.1.

  	
  FINANCIAL
  STATEMENTS AND OTHER INFORMATION

  	
   

  
	
  SECTION 5.2.

  	
  NOTICES OF MATERIAL EVENTS

  	
   

  
	
  SECTION 5.3.

  	
  EXISTENCE; CONDUCT OF
  BUSINESS

  	
   

  
	
  SECTION 5.4.

  	
  COMPLIANCE WITH LAWS, ETC.

  	
   

  
	
  SECTION 5.5.

  	
  PAYMENT OF OBLIGATIONS

  	
   

  
	
  SECTION 5.6.

  	
  BOOKS AND RECORDS

  	
   

  
	
  SECTION 5.7.

  	
  VISITATION, INSPECTION,
  ETC.

  	
   

  
	
  SECTION 5.8.

  	
  MAINTENANCE OF
  PROPERTIES; INSURANCE

  	
   

  
	
  SECTION 5.9.

  	
  USE OF PROCEEDS
  AND LETTERS OF CREDIT

  	
   

  
	
  SECTION 5.10

  	
  ADDITIONAL SUBSIDIARIES

  	
   

  
	
  SECTION 5.11

  	
  POST-CLOSING REQUIREMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  FINANCIAL COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.1.

  	
  TOTAL DEBT TO EBITDA RATIO

  	
   

  
	
  SECTION 6.2.

  	
  TOTAL
  ADJUSTED DEBT TO TOTAL ADJUSTED CAPITAL RATIO

  	
   

  
	
  SECTION 6.3.

  	
  FIXED CHARGE COVERAGE RATIO

  	
   

  
	
  SECTION 6.4.

  	
  MINIMUM CONSOLIDATED NET
  WORTH

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.1.

  	
  INDEBTEDNESS.

  	
   

  
	
  SECTION 7.2.

  	
  NEGATIVE PLEDGE

  	
   

  
	
  SECTION 7.3.

  	
  FUNDAMENTAL CHANGES

  	
   

  
	
  SECTION 7.4.

  	
  INVESTMENTS, LOANS, ETC.

  	
   

  
	
  SECTION 7.5.

  	
  RESTRICTED PAYMENTS

  	
   

  
	
  SECTION 7.6.

  	
  SALE OF ASSETS

  	
   

  
	
  SECTION 7.7.

  	
  TRANSACTIONS WITH
  AFFILIATES

  	
   

  
	
  SECTION 7.8.

  	
  RESTRICTIVE AGREEMENTS

  	
   

  
	
  SECTION 7.9.

  	
  SALE AND LEASEBACK
  TRANSACTIONS

  	
   

  
	
  SECTION 7.10.

  	
  AMENDMENT TO MATERIAL
  DOCUMENTS

  	
   

  
	
  SECTION 7.11.

  	
  ACCOUNTING CHANGES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  EVENTS
  OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.1.

  	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  THE
  ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.1.

  	
  APPOINTMENT OF
  ADMINISTRATIVE AGENT

  	
   

  
	
  SECTION 9.2.

  	
  NATURE OF DUTIES OF ADMINISTRATIVE
  AGENT

  	
   

  
	
  SECTION 9.3.

  	
  LACK OF RELIANCE ON THE
  ADMINISTRATIVE AGENT

  	
   

  
	
  SECTION 9.4.

  	
  CERTAIN RIGHTS OF THE ADMINISTRATIVE
  AGENT

  	
   

  
	
  SECTION 9.5.

  	
  RELIANCE BY ADMINISTRATIVE
  AGENT

  	
   

  
	
  SECTION 9.6.

  	
  THE ADMINISTRATIVE AGENT IN
  ITS INDIVIDUAL CAPACITY

  	
   

  
	
  SECTION 9.7.

  	
  SUCCESSOR ADMINISTRATIVE AGENT

  	
   

  
	
  SECTION 9.8.

  	
  AUTHORIZATION TO EXECUTE OTHER
  LOAN DOCUMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.1.

  	
  NOTICES

  	
   

  
	
  SECTION 10.2.

  	
  WAIVER; AMENDMENTS

  	
   

  
	
  SECTION 10.3.

  	
  EXPENSES; INDEMNIFICATION

  	
   

  
	
  SECTION 10.4.

  	
  SUCCESSORS AND ASSIGNS

  	
   

  

 

 

	
  SECTION 10.5.

  	
  GOVERNING LAW; JURISDICTION; CONSENT TO
  SERVICE OF PROCESS

  	
   

  
	
  SECTION 10.6.

  	
  WAIVER OF JURY TRIAL

  	
   

  
	
  SECTION 10.7.

  	
  RIGHT OF SETOFF

  	
   

  
	
  SECTION 10.8.

  	
  COUNTERPARTS; INTEGRATION

  	
   

  
	
  SECTION 10.9.

  	
  SURVIVAL

  	
   

  
	
  SECTION 10.10.

  	
  SEVERABILITY

  	
   

  
	
  SECTION 10.11.

  	
  CONFIDENTIALITY

  	
   

  
	
  SECTION 10.12.

  	
  INTEREST RATE LIMITATION

  	
   

  

 

	
  Schedules

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 1.1(a)

  	
   

  	
  -

  	
   

  	
  Applicable
  Margin and Applicable Percentage

  
	
  Schedule 1.1(b)

  	
   

  	
  -

  	
   

  	
  Lender
  Commitments

  
	
  Schedule 4.5(a)

  	
   

  	
  -

  	
   

  	
  Litigation

  
	
  Schedule 4.5(b)

  	
   

  	
  -

  	
   

  	
  Environmental
  Matters

  
	
  Schedule 4.14

  	
   

  	
  -

  	
   

  	
  Subsidiaries

  
	
  Schedule 7.1

  	
   

  	
  -

  	
   

  	
  Outstanding
  Indebtedness

  
	
  Schedule 7.2

  	
   

  	
  -

  	
   

  	
  Existing
  Liens

  
	
  Schedule 7.4

  	
   

  	
  -

  	
   

  	
  Existing
  Investments

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Revolving Credit Note

  
	
  Exhibit B

  	
   

  	
  -

  	
   

  	
  Swingline
  Note

  
	
  Exhibit C

  	
   

  	
  -

  	
   

  	
  Form of Assignment and Acceptance

  
	
  Exhibit D

  	
   

  	
  -

  	
   

  	
  Form of Subsidiary Guarantee Agreement

  
	
  Exhibit E

  	
   

  	
  -

  	
   

  	
  Form of Indemnity, Subrogation and Contribution Agreement

  
	
  Exhibit 2.3

  	
   

  	
  -

  	
   

  	
  Notice of Revolving Borrowing

  
	
  Exhibit 2.5

  	
   

  	
  -

  	
   

  	
  Notice of Swingline Borrowing

  
	
  Exhibit 2.7

  	
   

  	
  -

  	
   

  	
  Form of Continuation/Conversion

  
	
  Exhibit 3.1(b) (iv)

  	
   

  	
  -

  	
   

  	
  Form of Secretary’s Certificate

  
	
  Exhibit 3.1(b)(vii)

  	
   

  	
  -

  	
   

  	
  Form of Officer’s Certificate

  

 

REVOLVING CREDIT AGREEMENT

 

THIS REVOLVING CREDIT AGREEMENT (this
“Agreement”)  is
made and entered into as of May 28, 2004, by and among AARON RENTS, INC., a
Georgia corporation (the “Borrower”),
AARON RENTS, INC. PUERTO RICO, a Puerto Rico corporation (the “Co-Borrower”), the several banks and
other financial institutions from time to time party hereto (the “Lenders”), SUNTRUST BANK, in its capacity
as Administrative Agent for the Lenders (the “Administrative
Agent”) and WACHOVIA BANK, NATIONAL ASSOCIATION, as Syndication
Agent (the “Syndication Agent”).

 

W I T N E
S S E T H:

 

WHEREAS, the
Borrower and Co-Borrower have requested that the Lenders establish a
$87,000,000 revolving credit facility in favor of the Borrower with a
$15,000,000 subfacility in favor of the Co-Borrower;

 

 

WHEREAS, subject to
the terms and conditions of this Agreement, the Lenders severally, to the
extent of their respective Commitments as defined herein, are willing to
severally establish the requested revolving credit facility in favor of the
Borrower and the requested subfacility in favor of the Co-Borrower;

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants herein contained, the
Borrower, the Co-Borrower, the Lenders and the Administrative Agent agree as
follows:

 

DEFINITIONS; CONSTRUCTION

 

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

 

“Acquisition”
means any transaction in which the Borrower or any of its Subsidiaries directly
or indirectly (i) acquires any ongoing business, (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 Borrower or
another Subsidiary Loan Party, or (iv) acquires control of more than 50%
ownership interest in any partnership, joint venture or limited liability
company.

 

“Adjusted LIBO Rate”
shall mean, with respect to each Interest Period for a Eurodollar Borrowing,
the rate per annum obtained by dividing (i) LIBOR for such Interest Period
by (ii) a percentage equal to 1.00 minus the
Eurodollar Reserve Percentage.

 

“Administrative Agent”
shall have the meaning assigned to such term in the opening paragraph hereof.

 

“Administrative Questionnaire”
shall mean, with respect to each Lender, an administrative questionnaire in the
form prepared by the Administrative Agent and submitted to the Administrative
Agent duly completed by such Lender.

 

“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.

 

“Aggregate Revolving
Commitments” shall mean, collectively, all Revolving Commitments
of all Lenders at any time outstanding.

 

“Applicable Lending Office”
shall mean, for each Lender and for each Type of Loan, the “Lending Office” of
such Lender (or an Affiliate of such Lender) designated for such Type of Loan
in the Administrative Questionnaire submitted by such Lender or such other
office of such Lender (or an Affiliate of such Lender) as such Lender may from
time to time specify to the Administrative Agent and the Borrower as the office
by which its Loans of such Type are to be made and maintained.

 

“Applicable Margin”
shall mean with respect to all Eurodollar Revolving Loans outstanding on any
date and all letter of credit fees, as the case may be, a 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 Margin resulting from a change in the Total
Debt to EBITDA Ratio shall be effective on the second day after which the
Borrower has delivered the financial statements required by Section 5.1(a)
or (b) and the compliance certificate required by Section 5.1
(c); provided further, that if at any time the Borrower shall
have failed to deliver such financial statements and such certificate, the
Applicable Margin shall be at Level IV until such time as such financial
statements and certificate are delivered, at which time the Applicable Margin
shall be determined

 

 

as provided above. Notwithstanding the foregoing, the Applicable Margin
from the Closing Date until the financial statement and compliance certificate
for the fiscal quarter ending on June 30, 2004 are delivered shall be at
Level II.

 

“Applicable Percentage”
shall mean, with respect to the 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
Borrower has delivered the financial statements required by Section 5.1(a)
or (b) and the compliance certificate required by Section 5.1
(c); provided, further, that if at any time the Borrower shall
have failed to deliver such financial statements and such certificate, the
Applicable Percentage shall be at Level IV until such time as such financial
statements and certificate are delivered, at which time the Applicable
Percentage shall be determined as provided above.  Notwithstanding the foregoing, the Applicable
Percentage for the commitment fee from the Closing Date until the financial
statement and compliance certificate for the fiscal quarter ending on
June 30, 2004 are delivered shall be at Level II.

 

“Assignment and Acceptance”
shall mean an assignment and acceptance entered into by a Lender and an
assignee (with the consent of any party whose consent is required by Section 10.4(b))
and accepted by the Administrative Agent, in the form of Exhibit C
attached hereto or any other form approved by the Administrative Agent.

 

 “Availability Period” shall mean the
period from the Closing Date to the Revolving Commitment Termination Date.

 

 “Base Rate” shall mean the higher of
(i) the per annum rate which the Administrative Agent publicly announces
from time to time to be its prime lending rate, as in effect from time to time,
and (ii) the Federal Funds Rate, as in effect from time to time, plus one-half of one percent (0.50%). The Administrative
Agent’s prime lending rate is a reference rate and does not necessarily
represent the lowest or best rate charged to customers.  The Administrative Agent may make commercial
loans or other loans at rates of interest at, above or below the Administrative
Agent’s prime lending rate.  Each change
in the Administrative Agent’s prime lending rate shall be effective from and
including the date such change is publicly announced as being effective.

 

 “Borrower” shall have the meaning in
the introductory paragraph hereof.

 

“Borrowing” shall
mean a borrowing consisting of (i) Loans of the same Class and Type, made,
converted or continued on the same date and in case of Eurodollar Loans, as to
which a single Interest Period is in effect, or (ii) a Swingline Loan.

 

“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 a
Borrowing of, a payment or prepayment of principal or interest on, a conversion
of or into, or an Interest Period for, a Eurodollar Loan or a notice with
respect to any of the foregoing, any day on which dealings in Dollars are
carried on in the London interbank market.

 

“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.

 

“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 Borrower 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 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
Borrower; or (c) occupation of a majority of the seats (other than vacant
seats) on the board of directors of the Borrower by Persons who were neither
(i) nominated by the current board of directors or (ii) appointed by directors
so nominated.

 

“Change in Law”
shall mean (i) the adoption of any applicable law, rule or regulation after the
date of this Agreement, (ii) any change in any applicable law, rule or
regulation, or any change in the interpretation or

 

 

application thereof, by any Governmental Authority after the date of
this Agreement, or (iii) compliance by any Lender (or its Applicable Lending
Office) or the Issuing Bank (or for purposes of Section 2.17(b), by
such Lender’s or the Issuing Bank’s holding company, if applicable) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

 

“Class”,  when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans
or Swingline Loans and when used in reference to any Commitment, refers to
whether such Commitment is a Revolving Commitment or a Swingline Commitment.

 

“Closing Date”
shall mean the date on which the conditions precedent set forth in Section 3.1
and Section 3.2 have been satisfied or waived in accordance with Section 10.2.

 

“Co-Borrower”
shall have the meaning given to such term in the introductory paragraph hereof.

 

“Co-Borrower Subfacility
Amount” shall mean $15,000,000

 

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

 

“Commitment”
shall mean a Revolving Commitment or a Swingline Commitment or any combination
thereof (as the context shall permit or require).

 

“Consolidated EBITDA”
shall mean, for the Borrower 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 Borrower 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 Borrower and its Subsidiaries for any period, the sum
(without duplication) of (a) Consolidated Interest Expense for such period and
(b) Consolidated Lease Expense for such period.

 

“Consolidated Interest
Expense” shall mean, for the Borrower 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 Borrower 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.

 

“Consolidated Net Income”
shall mean, for any period, the net income (or loss) of the Borrower 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 Borrower or any
Subsidiary of the Borrower 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
Borrower or any Subsidiary on the date that such Person’s assets are acquired
by the Borrower or any Subsidiary.

 

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

 

“Consolidated Total
Adjusted Capital” shall mean, as of any date of determination
with respect to the Borrower, 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
Borrower 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 Borrower and its subsidiaries on a
consolidated basis of the types described in the definition of Indebtedness
(other than as described in subsection (xi) thereof), but including, but
not limited to all Loans and LC Exposure. 
Notwithstanding anything contained herein to the contrary, for purposes
of calculating Consolidated Total Debt as of any date, the obligations, liabilities
and indebtedness of the Borrower under the Loan Facility Agreement shall be
limited to fifty percent (50%) of the aggregate outstanding principal amount of
the Loans (as such term is defined in the Loan Facility Agreement) on such
date.

 

“Default” shall mean any condition or
event that, with the giving of notice or the lapse of time or both, would
constitute an Event of Default.

 

 

“Default Interest”
shall have the meaning set forth in Section 2.12(c).

 

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

 

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

 

“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 Borrower 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 Borrower, 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 Borrower 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
Borrower 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
Borrower 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 Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower 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.

 

“Eurodollar”
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, bears interest at a rate determined by
reference to the Adjusted LIBO Rate.

 

“Eurodollar Reserve
Percentage” shall mean the aggregate of the maximum reserve
percentages (including, without limitation, any emergency, supplemental,
special or other marginal reserves) expressed as a decimal (rounded upwards to
the next 1/100th of 1%) in effect on any day to which the
Administrative Agent is subject with respect to the Adjusted LIBO Rate pursuant
to regulations issued by the Board of Governors of the Federal Reserve System
(or any Governmental Authority succeeding to any of its principal functions)
with respect to eurocurrency funding (currently referred to as “eurocurrency
liabilities” under Regulation D). 
Eurodollar Loans shall be deemed to constitute eurocurrency funding and
to be subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under Regulation D.  The
Eurodollar Reserve Percentage shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

 

“Event of Default”
shall have the meaning provided in Article VIII.

 

“Excluded Taxes” shall
mean with respect to the Administrative Agent, any Lender, the Issuing Bank or
any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) income or franchise taxes imposed on
(or measured by) its net income by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in which
its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other
jurisdiction in which any Lender is located and (c) in the case of a Foreign
Lender, any withholding tax that (i) is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this
Agreement, (ii) is imposed on amounts payable to such Foreign Lender at any
time that such Foreign Lender designates a new lending office, other than taxes
that have accrued prior to the

 

 

designation of such lending office that are
otherwise not Excluded Taxes, and (iii) is attributable to such Foreign
Lender’s failure to comply with Section 2.19(e).

 

“Existing Credit Agreement”
shall mean that certain Revolving Credit Agreement, dated as of March 30,
2001 and as heretofore amended, among the Borrower, SunTrust Bank (formerly
known as Trust Company Bank), First Union National Bank (formerly known as
First Union National Bank of Georgia), Bank One, N.A., formerly know as The
First National Bank Of Chicago, as assignee of NBD Bank, SouthTrust Bank,
(formerly known as SouthTrust Bank of Georgia, N.A.) and SunTrust Bank, as
Agent.

 

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

 

“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
Administrative Agent from three Federal funds brokers of recognized standing
selected by the Administrative Agent.

 

“Fiscal
Year” shall
mean a fiscal year of the Borrower; references to a Fiscal Year with a number
corresponding to any calendar year (e.g., the “Fiscal Year 2004”) 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 Borrower ending on such
date to (b) Consolidated Fixed Charges for the four consecutive fiscal quarters
of the Borrower ending on such date.

 

“Foreign Lender” shall
mean any Lender that is not a United States person under
Section 7701(a)(3) of the Code.

 

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

 

“GAAP” shall
mean generally accepted accounting principles in the United States applied on a
consistent basis and subject to the terms of Section 1.3.

 

“Governmental Authority”
shall mean the government of the United States of America, 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.

 

“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.

 

“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 8.1(g), 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 (v) 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.

 

“Indemnified Taxes”
shall mean Taxes other than Excluded Taxes.

 

“Indemnity and Contribution
Agreement” shall mean the Indemnity, Subrogation and
Contribution Agreement, substantially in the form of Exhibit E, among
the Borrower, the Co-Borrower, the Subsidiary Loan Parties and the
Administrative Agent, as amended, restated, supplemented or otherwise modified
from time to time.

 

“Interest Period”
shall mean with respect to any Eurodollar Borrowing, a period of one, two,
three or six months; provided, that:

 

the initial Interest Period
for such Borrowing shall commence on the date of such Borrowing (including the
date of any conversion from a Borrowing of another Type), and each Interest
Period occurring thereafter in respect of such Borrowing shall commence on the
day on which the next preceding Interest Period expires;

 

if any Interest Period would
otherwise end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day, unless such Business Day falls in
another calendar month, in which case such Interest Period would end on the
next preceding Business Day;

 

any Interest Period which
begins on the last Business Day of a calendar month or on a day for which there
is no numerically corresponding day in the calendar month at the end of such
Interest Period shall end on the last Business Day of such calendar month;  and

 

no Interest Period may extend
beyond the Revolving Commitment Termination Date.

 

“Issuing Bank”
shall mean SunTrust Bank or any other Lender, each in its capacity as an issuer
of Letters of Credit pursuant to Section 2.22.

 

 “LC Commitment” shall mean that
portion of the Aggregate Revolving Commitments that may be used by the Borrower
for the issuance of Letters of Credit in an aggregate face amount not to exceed
$5,000,000.

 

“LC Disbursement”
shall mean a payment made by the Issuing Bank pursuant to a Letter of Credit.

 

“LC Documents”
shall mean the Letters of Credit and all applications, agreements and
instruments relating to the Letters of Credit.

 

“LC Exposure”
shall mean, at any time, the sum of (i) the aggregate undrawn amount of
all outstanding Letters of Credit at such time, plus
(ii) the aggregate amount of all LC Disbursements that have not been
reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender shall be its
Pro Rata Share of the total LC Exposure at such time.

 

“Lenders”
shall have the meaning assigned to such term in the opening paragraph of this
Agreement and shall include, where appropriate, the Swingline Lender.

 

“Letter of Credit”
shall mean any stand-by letter of credit issued pursuant to Section 2.22
by the Issuing Bank for the account of the Borrower pursuant to the LC
Commitment.

 

“LIBOR”
shall mean, for any applicable Interest Period with respect to any Eurodollar
Loan, the rate per annum for deposits in Dollars for a period equal to such
Interest Period appearing on the display designated as Page 3750 on the Dow
Jones Markets Service (or such other page on that service or such other service
designated by the British

 

 

Banker’s Association for the display of such
Association’s Interest Settlement Rates for Dollar deposits) as of
11:00 a.m. (London, England time) on the day that is two Business Days
prior to the first day of the Interest Period or if such Page 3750 is
unavailable for any reason at such time, the rate which appears on the Reuters
Screen ISDA Page as of such date and such time; provided, that if the
Administrative Agent determines that the relevant foregoing sources are
unavailable for the relevant Interest Period, LIBOR shall mean the rate of
interest determined by the Administrative Agent to be the average (rounded
upward, if necessary, to the nearest 1/100th of 1%) of the rates per
annum at which deposits in Dollars are offered to the Administrative Agent 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 Interest Period, for the number of days comprised therein and in an
amount comparable to the amount of the Eurodollar Loan of the Administrative
Agent.

 

“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.

 

“Loan Documents”
shall mean, collectively, this Agreement, the Notes, the LC Documents, the
Subsidiary Guarantee Agreement, the Indemnity and Contribution Agreement and
any and all other instruments, agreements, documents and writings executed in
connection with any of the foregoing.

 

“Loan Parties”
shall mean the Borrower, the Co-Borrower and the Subsidiary Loan Parties.

 

“Loan Facility Agreement”
shall mean that certain Loan Facility Agreement and Guaranty dated as of the
date hereof by and among the Borrower, SunTrust Bank, as Servicer and the
financial institutions from time to time a party thereto, as Participants, as
amended, restated, supplemented or otherwise modified from time to time.

 

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

 

“Loans”
shall mean all Revolving Loans and Swingline Loans in the aggregate or any of
them, as the context shall require.

 

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

 

“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 Borrower and its
Subsidiaries taken as a whole, (ii) the ability of the Borrower or the
Loan Parties taken as a whole to perform any of their respective obligations
under the Loan Documents (iii) the rights and remedies of the Administrative
Agent, the Issuing Bank and the Lenders under any of the Loan Documents or (iv)
the legality, validity or enforceability of any of the Loan Documents.

 

“Material Indebtedness”
shall mean Indebtedness (other than the Loans and Letters of Credit) of any one
or more of the Borrower and the Subsidiaries in an aggregate principal amount
exceeding $1,000,000.

 

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

 

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

 

“Notes”
shall mean, collectively, the Revolving Credit Notes and the Swingline Note.

 

“Note Purchase Agreement”shall mean that certain Note Purchase
Agreement, dated as of August 15, 2002, by and among Borrower, 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 and otherwise modified from time to time.

 

“Notices of Borrowing”
shall mean, collectively, the Notices of Revolving Borrowing and the Notices of
Swingline Borrowing.

 

“Notice of
Conversion/Continuation”  shall mean the
notice given by the Borrower to the Administrative Agent in respect of the
conversion or continuation of an outstanding Borrowing as provided in Section 2.7(b)
hereof.

 

“Notice of Revolving
Borrowing” shall have the meaning as set forth in Section 2.3.

 

“Notice of Swingline
Borrowing”  shall have
the meaning as set forth in Section 2.5.

 

“Obligations”
shall mean all amounts owing by the Borrower and the Co-Borrower  to the Administrative Agent, the Issuing Bank
or any Lender (including the Swingline Lender) pursuant to or in connection
with this Agreement

 

 

or any other Loan Document, including without
limitation, all principal, interest (including any interest accruing after the
filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or like proceeding relating to the Borrower or the Co-Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding), all reimbursement obligations,  fees, expenses, indemnification and
reimbursement payments, costs and expenses (including all fees and expenses of
counsel to the Administrative Agent and any Lender (including the Swingline
Lender) incurred pursuant to this Agreement or any other Loan Document),
whether direct or indirect, absolute or contingent, liquidated or unliquidated,
now existing or hereafter arising hereunder or thereunder, and all obligations
and liabilities incurred in connection with collecting and enforcing the
foregoing, together with all renewals, extensions, modifications or
refinancings thereof.

 

“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 nonrecourse
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.

 

 “Other Taxes” shall mean any and all
present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies arising from any payment made hereunder or
from the execution, delivery or enforcement of, or otherwise with respect to,
this Agreement or any other Loan Document.

 

“Participant”
shall have the meaning set forth in Section 10.4(c).

 

“Payment Office”
shall mean the office of the Administrative Agent located at 303 Peachtree
Street, N.E., Atlanta, Georgia 30308, or such other location as to which the
Administrative Agent shall have given written notice to the Borrower and the
other Lenders.

 

“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 Default or Event of Default 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 $30,000,000, and
(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 $40,000,000. 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;

 

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;

 

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

 

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;

 

 

judgment and attachment
liens not giving rise to an Event of Default or Liens created by or existing
from any litigation or legal proceeding that are currently being contested in
good faith by appropriate proceedings and with respect to which adequate
reserves are being maintained in accordance with GAAP; and

 

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 Borrower and its Subsidiaries taken as a whole;

 

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

 

Liens on insurance policies
owned by the Borrower 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 Borrower 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:

 

(ii)                                  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;

 

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;

 

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;

 

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

 

 

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

 

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

 

“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 Borrower 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.

 

“Pro Rata Share”
shall mean with respect to any Commitment of any Lender at any time, a
percentage, the numerator of which shall be such Lender’s Commitment (or if
such Commitments have been terminated or expired or the Loans have been
declared to be due and payable, such Lender’s Loan funded under such
Commitment), and the denominator of which shall be the sum of such Commitments
of all Lenders (or if such Commitments have been terminated or expired or the
Loans have been declared to be due and payable, all Loans of all Lenders funded
under such Commitments).

 

“Puerto Rico Commitment
Amount” shall mean $15,000,000, as reduced from time to time
pursuant to Section 2.8.

 

“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, and any successor
regulations.

 

“Related Parties”
shall mean, with respect to any specified Person, such Person’s Affiliates and
the respective directors, officers, employees, agents and advisors of such
Person and such Person’s Affiliates.

 

“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.

 

“Required Lenders”
shall mean, at any time, Lenders holding at least 51% of the aggregate
Revolving Commitments at such time or if the Lenders have no Commitments
outstanding, then Lenders holding at least 51% of the Loans.

 

“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 Borrower or such other representative of the
Borrower as may be designated in writing by any one of the foregoing with the
consent of the Administrative Agent; and, with respect to the financial
covenants only, the chief financial officer, the controller or the treasurer of
the Borrower.

 

“Restricted Payment”
shall have the meaning set forth in Section 7.5.

 

“Revolving Commitment”
shall mean, with respect to each Lender, the obligation of such Lender to make
Revolving Loans to the Borrower and the Co-Borrower and to participate in
Letters of Credit and Swingline Loans in an aggregate principal amount not
exceeding the amount set forth with respect to such Lender on Schedule 1.1(b),
or in the case of a Person becoming a Lender after the Closing Date through an
assignment of an existing Revolving Commitment, the amount of the assigned
“Revolving Commitment” as provided in the Assignment and Acceptance executed by
such Person as an assignee, as the same may be increased or deceased pursuant
to terms hereof.

 

 “Revolving Commitment Termination Date”
shall mean the earliest of (i) May 28, 2007, (ii) the date on which the
Revolving Commitments are terminated pursuant to Section 2.8(b) or Section 8.1
and (iii) the date on which all amounts outstanding under this Agreement have
been declared or have automatically become due and payable (whether by
acceleration or otherwise).

 

“Revolving Credit
Availability Period” shall mean the period from the Closing Date
to the Revolving Commitment Termination Date.

 

“Revolving Credit Exposure”
shall mean, for any Lender, the sum of such Lender’s Revolving Loans, LC
Exposure and Swingline Exposure.

 

“Revolving Credit Note”
shall mean a promissory note of the Borrower payable to the order of a
requesting Lender in the principal amount of such Lender’s Revolving
Commitment, in substantially the form of Exhibit A-1, or a promissory
note of the Co-Borrower payable to the order of a requesting Lender in the
principal amount of such Lender’s Puerto Rico Commitment Amount, in
substantially the form of Exhibit A-2.

 

“Revolving Loan”
shall mean a loan made by a Lender (other than the Swingline Lender) to the
Borrower or the Co-Borrower under its Revolving Commitment, which may either be
a Base Rate Loan or a Eurodollar Loan.

 

“S&P”
shall mean Standard & Poor’s.

 

 

“SouthTrust Loan Facility Agreement”
means that certain Loan Facility Agreement and Guaranty dated as of
August 31, 2000, by and between the Borrower and SouthTrust Bank, which
facility has terminated prior to the Closing Date.

 

“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 Borrower.

 

“Subsidiary Guarantee
Agreement” shall mean the Subsidiary Guarantee Agreement,
substantially in the form of Exhibit D, made by the Subsidiary Loan
Parties in favor of the Administrative Agent for the benefit of the Lenders.

 

“Subsidiary Loan Party”
shall mean any Subsidiary that is not a Foreign Subsidiary.

 

“Swingline Commitment”
shall mean the commitment of the Swingline Lender to make Swingline Loans in an
aggregate principal amount at any time outstanding not to exceed  $12,000,000.

 

“Swingline  Exposure” shall mean, with
respect to each Lender, the principal amount of the Swingline Loans in which
such Lender is legally obligated either to make a Base Rate Loan or to purchase
a participation in accordance with Section 2.5, which shall equal
such Lender’s Pro Rata Share of all outstanding Swingline Loans.

 

“Swingline Lender”
shall mean SunTrust Bank, or any other Lender that may agree to make Swingline
Loans hereunder.

 

“Swingline Loan”
shall mean a loan made to the Borrower by the Swingline Lender under the
Swingline Commitment.

 

“Swingline Note”
shall mean the promissory note of the Borrower payable to the order of the
Swingline Lender in the principal amount of the Swingline Commitment,
substantially the form of Exhibit  B.

 

“Swingline Rate”
shall mean, for any Interest Period, the rate as offered by the Administrative
Agent and accepted by the Borrower.  The
Borrower is under no obligation to accept this rate and the Administrative
Agent is under no obligation to provide it.

 

“Synthetic Lease Documents”
shall mean, collectively, the Master Agreement, dated as of September 30,
1996, among the Borrower, SunTrust Banks, Inc., as lessor (the “Lessor”),
SunTrust Bank and SouthTrust Bank of Georgia, N.A., as lenders, and SunTrust
Bank, as agent, the Lease Agreement, dated as of September 30, 1996,
between the Lessor and the Borrower and any supplements thereto, the
Construction Agency Agreement, dated as of September 30, 1996, among the
Lessor and the Borrower, the Guaranty, dated as of September 30, 1996,
executed by the Borrower in favor of the Funding Parties (as defined therein),
and any and all security agreements and Assignments (Construction Contract,
Architect’s Agreement, Permits, Licenses and Governmental Approvals, and Plans
and Specifications and Drawings) executed from time to time by the Sponsor in
favor of the Lessor, and any modifications of or replacements for any or all of
the foregoing.

 

“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 Borrower ending on such date.

 

“Transaction Documents” shall mean, collectively, the Loan Documents and the
Loan Facility Documents.

 

“Type”, when
used in reference to a Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Adjusted LIBO Rate or the Base Rate.

 

 

“Uniform Commercial Code” or “UCC” means
the Uniform Commercial Code as in effect from time to time in the State of
Georgia.

 

“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.

 

Classifications of Loans
and Borrowings.  For purposes of this Agreement, Loans may be
classified  and referred to by Class
(e.g. a “Revolving Loan”) or by Type (e.g. a “Eurodollar Loan” or “Base Rate
Loan”) or by Class and Type (e.g. “Revolving Eurodollar Loan”).  Borrowings also may be classified and
referred to by Class (e.g. “Revolving Borrowing”) or by Type (e.g. “Eurodollar
Borrowing”) or by Class and Type (e.g. “ Revolving Eurodollar Borrowing”).

 

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 Borrower delivered pursuant to Section 5.1(a);
provided, that if the Borrower notifies the Administrative Agent that
the Borrower wishes to amend any covenant in Article VI to eliminate the
effect of any change in GAAP on the operation of such covenant (or if the
Administrative Agent notifies  the
Borrower that the Required Lenders wish to amend Article VI for such
purpose), then the Borrower’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 Borrower and the Required Lenders.

 

Terms Generally.  The definitions of terms
herein shall apply equally to the singular and plural forms of the terms
defined.  Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and neuter
forms.  The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will” shall be
construed to have the same meaning and effect as the word “shall”.  In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and
including” and the word “to” means “to but excluding”. Unless the context
requires otherwise (i) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as it was originally executed or as it
may from time to time be amended, supplemented or otherwise modified (subject
to any restrictions on such amendments, supplements or modifications set forth
herein), (ii) any reference herein to any Person shall be construed to include
such Person’s successors and permitted assigns, (iii) the words “hereof”,
“herein” and “hereunder” and words of similar import shall be construed to
refer to this Agreement as a whole and not to any particular provision hereof,
(iv) all references to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles, Sections, Exhibits and Schedules to this
Agreement and (v) all references to a specific time shall be construed to refer
to the time in the city and state of the Administrative Agent’s principal
office, unless otherwise indicated.

 

AMOUNT AND TERMS OF THE COMMITMENTS

 

General Description of
Facilities.  Subject to and upon the terms and conditions
herein set forth, (i) the Lenders hereby establish in favor of the
Borrower a revolving credit facility pursuant to which the Lenders severally
agree (to the extent of each Lender’s Revolving Commitment) to make Revolving
Loans to the Borrower in accordance with Section 2.2(a) and to make
Revolving Loans to the Co-Borrower in accordance with Section 2.2(b),
(ii) the Issuing Bank agrees to issue Letters of Credit in accordance with Section 2.22,
(iii) the Swingline Lender agrees to make Swingline Loans in accordance with Section 2.4,  and (iv) each Lender agrees to purchase a
participation interest in the Letters of Credit and the Swingline Loans
pursuant to the terms and conditions hereof; provided, that in no event
shall the aggregate principal amount of all outstanding Revolving Loans,
Swingline Loans and outstanding LC Obligations exceed at any time the Aggregate
Revolving  Commitments from time to time
in effect.

 

Revolving Loans.  (a) Subject to the terms and conditions set
forth herein, each Lender severally agrees to make Revolving Loans to the
Borrower, from time to time during the  Availability Period, in an aggregate principal amount outstanding at any
time that will not result in (i) such Lender’s Revolving Credit Exposure
exceeding such Lender’s Revolving Commitment, or (ii) the sum of the aggregate
Revolving Credit Exposures of all Lenders exceeding the Aggregate

 

 

Revolving
Commitments.  During the Availability
Period, the Borrower shall be entitled to borrow, prepay and reborrow Revolving
Loans in accordance with the terms and conditions of this Agreement; provided,
that the Borrower may not borrow or reborrow should there exist a Default or
Event of Default.

 

(b)                                 Subject
to the terms and conditions set forth herein, each Lender severally agrees to
make Revolving Loans to the Co-Borrower, from time to time during the
Availability Period, in an aggregate principal amount outstanding at any time
that will not result in (i) such Lender’s Revolving Credit Exposure exceeding
such Lender’s Revolving Commitment, (ii) the sum of the aggregate Revolving
Credit Exposures of all Lenders exceeding the Aggregate Revolving Commitments
or (iii) the aggregate principal amount of all Revolving Loans to the
Co-Borrower exceeding the Co-Borrower SubFacility Amount.  During the Availability Period, the
Co-Borrower shall be entitled to borrow, prepay and reborrow Revolving Loans in
accordance with the terms and conditions of this Agreement in an aggregate
principal amount not to exceed the Co-Borrower Subfacility Amount; provided,
that the Co-Borrower may not borrow or reborrow should there exist a Default or
Event of Default.

 

Procedure for Revolving Borrowings.

 

The Borrower shall give the Administrative Agent written notice (or
telephonic notice promptly confirmed in writing) of each Revolving Borrowing
substantially in the form of Exhibit 2.3 attached hereto (a “Notice of Revolving Borrowing”) (x)
prior to 11:00 a.m. one (1) Business Day prior to the requested date of each
Base Rate Borrowing and (y) prior to 11:00 a.m. three (3) Business Days prior
to the requested date of each Eurodollar Borrowing. Each Notice of Revolving
Borrowing shall be irrevocable and  shall specify:
(i) the aggregate principal amount of such Borrowing, (ii) the date of such
Borrowing (which shall be a Business Day), (iii)  whether the Borrowing will be made by the
Borrower or the Co-Borrower, (iv) the Type of such Revolving Loan comprising
such Borrowing and (v) in the case of a Eurodollar Borrowing, the duration of the
initial Interest Period applicable thereto (subject to the provisions of the
definition of Interest Period). Each Revolving Borrowing shall consist entirely
of Base Rate Loans or Eurodollar Loans, as the Borrower may request.  The aggregate principal amount of each
Eurodollar Borrowing shall be not less than $1,000,000 or a larger multiple of
$500,000, and the aggregate principal amount of each Base Rate Borrowing shall
not be less than $1,000,000 or a larger multiple of $100,000; provided,
that Base Rate Loans made pursuant to Section 2.5 or Section 2.22(c)
may be made in lesser amounts as provided therein.  At no time shall the total number of
Eurodollar Borrowings outstanding at any time exceed six.  Promptly following the receipt of a Notice of
Revolving Borrowing in accordance herewith, the Administrative Agent shall
advise each Lender of the details thereof and the amount of such Lender’s
Revolving Loan to be made as part of the requested Revolving Borrowing.

 

Swingline Commitment. Subject to the terms and
conditions set forth herein, the Swingline Lender agrees to make Swingline
Loans to the Borrower, from time to time from the Closing Date to the Revolving
Commitment Termination Date, in an aggregate principal amount outstanding at
any time not to exceed the lesser of (i) the Swingline Commitment then in
effect and (ii) the difference between the Aggregate Revolving Commitments and
the aggregate Revolving Credit Exposures of all Lenders; provided, that
the Swingline Lender shall not be required to make a Swingline Loan to
refinance an outstanding Swingline Loan. 
The Borrower shall be entitled to borrow, repay and reborrow Swingline
Loans in accordance with the terms and conditions of this Agreement.

 

Procedure for Swingline
Borrowing; Etc.  (iii) 
The Borrower shall give the Administrative Agent written notice (or
telephonic notice promptly confirmed in writing) of each Swingline Borrowing (“Notice of Swingline Borrowing”) prior to
10:00 a.m. on the requested date of each Swingline Borrowing.  Each Notice of Swingline Borrowing shall be
irrevocable and shall specify: (i) the principal amount of such Swingline Loan,
(ii) the date of such Swingline Loan (which shall be a Business Day) and (iii)
the account of the Borrower to which the proceeds of such Swingline Loan should
be credited. The Administrative Agent will promptly advise the Swingline Lender
of each Notice of Swingline Borrowing. 
Each Swingline Loan shall accrue interest at the Swingline Rate or any
other interest rate as agreed between the Borrower and the Swingline Lender and
shall have an Interest Period (subject to the definition thereof) as agreed
between the Borrower and the Swingline Lender. The aggregate principal amount
of each Swingline Loan shall be not less than  $100,000 or a larger multiple of $50,000, or such other minimum amounts
agreed to by the Swingline Lender and the Borrower. The

 

 

Swingline
Lender will make the proceeds of each Swingline Loan available to the Borrower
in Dollars in immediately available funds at the account specified by the
Borrower in the applicable Notice of Swingline Borrowing not later than 1:00
p.m. on the requested date of such Swingline Loan.  The Administrative Agent will notify the
Lenders on a quarterly basis if any Swingline Loans occurred during such
quarter.

 

The Swingline Lender, at
any time and from time to time in its sole discretion, may, on behalf of the
Borrower (which hereby irrevocably authorizes and directs the Swingline Lender
to act on its behalf), give a Notice of Revolving Borrowing to the
Administrative Agent requesting the Lenders (including the Swingline Lender) to
make Base Rate Loans in an amount equal to the unpaid principal amount of any
Swingline Loan.  Each Lender will make
the proceeds of its Base Rate Loan included in such Borrowing available to the
Administrative Agent for the account of the Swingline Lender in accordance with
Section 2.6, which will be used solely for the repayment of such
Swingline Loan.

 

If for any reason a Base
Rate Borrowing may not be (as determined in the sole discretion of the
Administrative Agent), or is not, made in accordance with the foregoing
provisions, then each Lender (other than the Swingline Lender) shall purchase
an undivided participating interest in such Swingline Loan in an amount equal
to its Pro Rata Share thereof on the date that such Base Rate Borrowing should
have occurred. On the date of such required purchase, each Lender shall
promptly transfer, in immediately available funds, the amount of its
participating interest to the Administrative Agent for the account of the
Swingline Lender.  If such Swingline Loan
bears interest at a rate other than the Base Rate, such Swingline Loan shall
automatically become a Base Rate Loan on the effective date of any such
participation and interest shall become payable on demand.

 

Each Lender’s obligation
to make a Base Rate Loan pursuant to Section 2.5(b) or to
purchase the participating interests pursuant to Section 2.5(c)
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 that such Lender or any other Person may have or claim against
the Swingline Lender, the Borrower or any other Person for any reason
whatsoever, (ii) the existence of a Default or an Event of Default or the
termination of any Lender’s Revolving Commitment, (iii) the existence (or
alleged existence) of any event or condition 
which has had or could reasonably be expected to have a Material Adverse
Effect, (iv) any breach of this Agreement or any other Loan Document by the
Borrower, the Administrative Agent or any Lender or (v) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing.
If such amount is not in fact made available to the Swingline Lender by any
Lender, the Swingline Lender shall be entitled to recover such amount on demand
from such Lender, together with accrued interest thereon for each day from the
date of demand thereof at the Federal Funds Rate. Until such time as such
Lender makes its required payment, the Swingline Lender shall be deemed to
continue to have outstanding Swingline Loans in the amount of the unpaid
participation for all purposes of the Loan Documents.  In addition, such Lender shall be deemed to
have assigned any and all payments made of principal and interest on its Loans
and any other amounts due to it hereunder, to the Swingline Lender to fund the
amount of such Lender’s participation interest in such Swingline Loans that
such Lender failed to fund pursuant to this Section, until such amount has been
purchased in full.

 

Funding of Borrowings.

 

Each Lender will make
available each Loan to be made by it hereunder on the proposed date thereof by
wire transfer in immediately available funds by 11:00 a.m. to the
Administrative

 

 

Agent at the Payment
Office; provided, that the Swingline Loans will be made as set forth in Section 2.5.  The Administrative Agent will make such Loans
available to the Borrower or the Co-Borrower, as the case may be, by promptly
crediting the amounts that it receives, in like funds by the close of business
on such proposed date, to an account maintained by the Borrower or the
Co-Borrower, as the case may be, with the Administrative Agent or at the
Borrower’s option, by effecting a wire transfer of such amounts to an account
designated by the Borrower to the Administrative Agent.

 

Unless the Administrative
Agent shall have been notified by any Lender prior to 5 p.m. one (1) Business
Day prior to the date of a Borrowing in which such Lender is participating that
such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender
has made such amount available to the Administrative Agent on such date, and
the Administrative Agent, in reliance on such assumption, may make available to
the Borrower or the Co-Borrower, as the case may be, on such date a
corresponding amount.  If such corresponding
amount is not in fact made available to the Administrative Agent by such Lender
on the date of such Borrowing, the Administrative Agent shall be entitled to
recover such corresponding amount on demand from such Lender together with
interest at the Federal Funds Rate for up to two (2) days and thereafter at the
rate specified for such Borrowing.  If
such Lender does not pay such corresponding amount forthwith upon the
Administrative Agent’s demand therefor, the Administrative Agent shall promptly
notify the Borrower, and the Borrower shall immediately pay such corresponding
amount to the Administrative Agent together with interest at the rate specified
for such Borrowing. Nothing in this subsection shall be deemed to relieve
any Lender from its obligation to fund its Pro Rata Share of any Borrowing
hereunder or to prejudice any rights which the Borrower may have against any
Lender as a result of any default by such Lender hereunder.

 

All Revolving Borrowings
shall be made by the Lenders on the basis of their respective Pro Rata
Shares.  No Lender shall be responsible
for any default by any other Lender in its obligations hereunder, and each
Lender shall be obligated to make its Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to make its Loans
hereunder.

 

Interest Elections.

 

Each Borrowing initially
shall be of the Type specified in the applicable Notice of Borrowing, and in
the case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in such Notice of Borrowing. Thereafter, the Borrower may elect to
convert such Borrowing into a different Type or to continue such Borrowing, and
in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all
as provided in this Section. The Borrower may elect different options with
respect to different portions of the affected Borrowing, in which case each
such portion shall be allocated ratably among the Lenders holding Loans
comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing.  This
Section shall not apply to Swingline Borrowings, which may not be
converted or continued.

 

To make an election
pursuant to this Section, the Borrower shall give the Administrative Agent
prior written notice (or telephonic notice promptly confirmed in writing) of
each Borrowing (a “Notice of Conversion/Continuation”)
that is to be converted or continued, as the case may be, (x) prior to 11:00
a.m. one (1) Business Day prior to the requested date of a conversion into a
Base Rate Borrowing and (y) prior to 11:00 a.m. three (3) Business Days prior
to a continuation of or conversion into a Eurodollar Borrowing.

 

 

Each such Notice of
Conversion/Continuation shall be irrevocable and shall specify (i) the
Borrowing to which such Notice of Continuation/Conversion applies and if
different options are being elected with respect to different portions thereof,
the portions thereof that are to be allocated to each resulting Borrowing (in
which case the information to be specified pursuant to clauses (iii) and (iv)
shall be specified for each resulting Borrowing); (ii) the effective date of
the election made pursuant to such Notice of Continuation/Conversion, which
shall be a Business Day, (iii) whether the resulting Borrowing is to be a Base
Rate Borrowing or a Eurodollar Borrowing; and (iv) if the resulting Borrowing
is to be a Eurodollar Borrowing, the Interest Period applicable thereto after
giving effect to such election, which shall be a period contemplated by the
definition of “Interest Period”. If any such Notice of Continuation/Conversion
requests a Eurodollar Borrowing but does not specify an Interest Period, the
Borrower shall be deemed to have selected an Interest Period of one month.  The principal amount of any resulting
Borrowing shall satisfy the minimum borrowing amount for Eurodollar Borrowings
and Base Rate Borrowings set forth in Section 2.3.

 

If, on the expiration of
any Interest Period in respect of any Eurodollar Borrowing, the Borrower shall
have failed to deliver a Notice of Conversion/ Continuation, then, unless such
Borrowing is repaid as provided herein, the Borrower shall be deemed to have
elected to convert such Borrowing to a Base Rate Borrowing. No Borrowing may be
converted into, or continued as, a Eurodollar Borrowing if a Default or an
Event of Default exists, unless the Administrative Agent and each of the
Lenders shall have otherwise consented in writing.  No conversion of any Eurodollar Loans shall
be permitted except on the last day of the Interest Period in respect thereof.

 

Upon receipt of any
Notice of Conversion/Continuation, the Administrative Agent shall promptly
notify each Lender of the details thereof and of such Lender’s portion of each
resulting Borrowing.

 

Optional Reduction and Termination of Commitments.

 

Unless previously
terminated, all Revolving Commitments and the Swingline Commitment shall
terminate on the Revolving Commitment Termination Date.

 

Upon at least three (3)
Business Days’ prior written notice (or telephonic notice promptly confirmed in
writing) to the Administrative Agent (which notice shall be irrevocable), the
Borrower may reduce the Aggregate Revolving Commitments in part or terminate
the Aggregate Revolving Commitments in whole; provided, that (i) any
partial reduction shall apply to reduce proportionately and permanently the
Revolving Commitment of each Lender, (ii) any partial reduction pursuant to
this Section 2.8 shall be in an amount of at least $5,000,000 and
any larger multiple of $1,000,000, and (iii) no such reduction shall be
permitted which would reduce the Aggregate Revolving Commitments to an amount
less than the outstanding Revolving Credit Exposures of all Lenders. Any such
reduction in the Aggregate Revolving Commitments shall result in a
proportionate reduction (rounded to the next lowest integral multiple of
$100,000) in the Swingline Commitment and the LC Commitment.

 

 

Repayment
of Loans.

 

The outstanding principal
amount of all Revolving Loans made by Borrower pursuant to Section 2.2(a)
shall be due and payable by Borrower (together with accrued and unpaid interest
thereon) on the Revolving Commitment Termination Date.

 

The outstanding principal
amount of all Revolving Loans made by Co-Borrower pursuant to Section 2.2(b)
shall be due and payable by Co-Borrower (together with accrued and unpaid
interest thereon) on the Revolving Commitment Termination Date.

 

The principal amount of
each Swingline Borrowing shall be due and payable (together with accrued
interest thereon) on the earlier of (i) the last day of the Interest Period applicable
to such Borrowing and (ii) the Revolving Commitment Termination Date.

 

Evidence of Indebtedness.  (iv) 
Each Lender shall maintain in accordance with its usual practice
appropriate records evidencing the indebtedness of the Borrower and the Co-Borrower
to such Lender resulting from each Loan made by such Lender from time to time,
including the amounts of principal and interest payable thereon and paid to
such Lender from time to time under this Agreement. The Administrative Agent
shall maintain  appropriate
records  in which shall
be recorded (i) the Revolving Commitment of each Lender, (ii) the amount of
each Loan made hereunder by each Lender, the Class and Type thereof and the
Interest Period applicable thereto, (iii) the date of each continuation thereof
pursuant to Section 2.7, (iv) the date of each conversion of all or
a portion thereof to another Type pursuant to Section 2.7, (v) the
date and amount of any principal or interest due and payable or to become due
and payable from the Borrower and the Co-Borrower to each Lender hereunder in
respect of such Loans and (vi) both the date and amount of any sum received by
the Administrative Agent hereunder from the Borrower and the Co-Borrower in
respect of the Loans and each Lender’s Pro Rata Share thereof. The entries made
in such records shall be prima facie evidence
of the existence and amounts of the obligations of the Borrower and the
Co-Borrower therein recorded; provided, that the failure or delay of any
Lender or the Administrative Agent in maintaining or making entries into any
such record or any error therein shall not in any manner affect the obligation
of the Borrower or the Co-Borrower to repay the Loans (both principal and
unpaid accrued interest) of such Lender in accordance with the terms of this
Agreement.

 

At the request of any
Lender (including the Swingline Lender) at any time, the Borrower and the
Co-Borrower each agrees that it will execute and deliver to such Lender a
Revolving Credit Note and, in the case of the Swingline Lender only, a
Swingline Note, payable to the order of such Lender.

 

Prepayments.

 

The Borrower and the
Co-Borrower shall have the right at any time and from time to time to prepay
any Borrowing, in whole or in part, without premium or penalty, by giving
irrevocable written notice (or telephonic notice promptly confirmed in writing)
to the Administrative Agent no later than (i) in the case of prepayment of any
Eurodollar Borrowing, 11:00 a.m. not less than three (3) Business Days prior to
any such prepayment, (ii) in the case of any prepayment of any Base Rate
Borrowing, not less than one Business Day prior to the date of such prepayment,
and (iii) in the case of Swingline Borrowings, prior to 11:00 a.m. on the date
of such prepayment. Each such notice shall be irrevocable and shall specify the
proposed date of such prepayment and the principal amount of each Borrowing or
portion thereof to be prepaid. Upon receipt of any such notice, the
Administrative Agent shall promptly notify each affected Lender of the contents
thereof and of such Lender’s Pro Rata Share of any such prepayment.  If such notice is given, the aggregate amount
specified in such notice shall be due and payable on the date designated in
such notice, together with accrued interest to such date on the amount so
prepaid in accordance with Section 2.12(e); provided,
that if a Eurodollar Borrowing is prepaid on a date other than the last day of
an Interest Period applicable thereto, the Borrower, or the Co-Borrower, as the
case may be, shall also pay all amounts required pursuant to Section 2.18.  Each partial prepayment of any Loan (other
than a Swingline Loan) shall be in an amount not less than $1,000,000 and in

 

 

integral multiples of
$500,000. Each prepayment of a Borrowing shall be applied ratably to the Loans
comprising such Borrowing.

 

If at any time the
Revolving Credit Exposure of all Lenders exceeds the aggregate principal amount
of the Revolving Credit Commitments at such time, the Borrower shall
immediately repay Swingline Loans and Revolving Loans in an amount equal to
such excess, together with all accrued and unpaid interest on such excess
amount and any amounts due under Section 2.17.  Each prepayment of a Borrowing shall be
applied ratably first to the Swingline Loans to the full extent thereof, then
to the Revolving Base Rate Loans to the full extent thereof, and finally to
Revolving Eurodollar Loans to the full extent thereof.  If after giving effect to prepayment of all
Swingline Loans and Revolving Loans, the Revolving Credit Exposure of all
Lenders exceeds the aggregate principal amount of the Revolving Credit
Commitments at such time, the Borrower shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Issuing Bank and the Lenders, an amount in cash equal to such
excess plus any accrued and unpaid fees thereon to be held as collateral for
the LC Exposure.  Such account shall be
administered in accordance with Section 2.22(g) hereof.

 

If at any time the
Revolving Loans to the Co-Borrower exceeds the Co-Borrower Subfacility Amount,
as reduced pursuant to Section 2.8 or otherwise, the Co-Borrower
shall immediately repay Revolving Loans in an amount equal to such excess,
together with all accrued and unpaid interest on such excess amount and any
amounts due under Section 2.17. 
Each prepayment of a Borrowing shall be applied ratably to the Revolving
Base Rate Loans to the full extent thereof, and finally to Revolving Eurodollar
Loans to the full extent thereof.

 

Immediately upon receipt by the Borrower of proceeds of the sale or
disposition by the Borrower or any of its Subsidiaries of any of their assets,
the total consideration of which exceeds $10,000,000 in the aggregate
(including condemnation proceeds), the Borrower shall prepay the Loans and
deposit cash collateral for the LC Exposure in an amount equal to all such
proceeds, net of commissions, taxes paid or reasonably estimated by the
Borrower to be payable in connection with such transaction in the current year
or the immediately following year and other reasonable and customary
transaction costs, fees and expenses properly attributable to such transaction
and payable by the  Borrower in
connection therewith (in each case, paid to non-Affiliates).  Any such prepayment shall be applied in
accordance with paragraph (e) below.

 

If  the Borrower issues any capital stock, any
other equity interests, or any debt securities, then no later than the Business
Day following the date of receipt of the proceeds thereof, the Borrower shall
prepay the Loans and deposit cash collateral for the LC Exposure in an amount
equal to all such proceeds, net of underwriting discounts and commissions and
other reasonable costs paid to non-Affiliates in connection therewith.  Any such prepayment shall be applied in
accordance with paragraph (e) below.

 

Any prepayments made by
the Borrower pursuant to paragraphs (c) or (d) above shall be applied as
follows: first, to fees and reimbursable expenses of the Administrative
Agent then due and payable pursuant to any of the Loan Documents; second,
to all other fees (other than LC Fees) and reimbursable expenses of the Lenders
then due and payable pursuant to any of the Loan Documents, pro rata to the
Lenders based on their respective Pro Rata Shares of thereof; third, to
interest and LC Fees then due and payable on Loans made to the Borrower and
Letters of Credit issued for the account of the Borrower, pro rata to the
Lenders based on their respective Pro Rata

 

 

Shares thereof; fourth,
to the principal balance of the Revolving Loans and any unreimbursed LC
Disbursements until the same shall have been paid in full, pro rata to the
Lenders based on their respective Pro Rata Shares thereof; and fifth, to
an account with the Administrative Agent in the name of the Administrative
Agent and for the benefit of the Issuing Bank and the Lenders to hold as cash
collateral for the LC Exposure (other than any unreimbursed LC Disbursements
paid in accordance with the fourth clause above), in an amount of up to 105% of
the LC Exposure, such account to be administered in accordance with Section 2.22(g)
hereof.

 

Interest
on Loans.

 

The Borrower shall pay
interest with respect to the Revolving Loans made to the Borrower pursuant to
Section 2.2(a) and the Co-Borrower shall pay interest with respect to the
Revolving Loans made to the Co-Borrower pursuant to Section 2.2(b) (i) on
each Base Rate Loan at the Base Rate in effect from time to time and (ii) on
each Eurodollar Loan at the Adjusted LIBO Rate for the applicable Interest
Period in effect for such Loan plus the
Applicable Margin in effect from time to time and the Co-Borrower shall pay
interest with respect to its respective Revolving Loans made pursuant to Section 2.2(b),
(i) on each Base Rate Loan at the Base Rate in effect from time to time and
(ii) on each Eurodollar Loan at the Adjusted LIBO Rate for the applicable
Interest Period in effect for such Loan plus the
Applicable Margin in effect from time to time.

 

The Borrower shall pay
interest on each Swingline Loan at the Swingline Rate in effect from time to
time.

 

While an Event of Default
exists or after acceleration, at the option of the Required Lenders, the
Borrower and the Co-Borrower shall pay interest (“Default
Interest”) with respect to all Eurodollar Loans at the rate
otherwise applicable for the then-current Interest Period plus
an additional 2% per annum until the last day of such Interest Period, and
thereafter, and with respect to all Base Rate Loans (including all Swingline
Loans)  and all other Obligations hereunder
(other than Loans), at an all-in rate in effect for Base Rate Loans, plus an additional 2% per annum.

 

Interest on the principal
amount of all Loans shall accrue from and including the date such Loans are
made to but excluding the date of any repayment thereof. Interest on all
outstanding Base Rate Loans shall be payable quarterly in arrears on the last
day of each March, June, September and December and on the Revolving
Commitment Termination Date.  Interest on
all outstanding Eurodollar Loans shall be payable on the last day of each
Interest Period applicable thereto, and, in the case of any Eurodollar Loans
having an Interest Period in excess of three months or 90 days, respectively,
on each day which occurs every three months or 90 days, as the case may be,
after the initial date of such Interest Period, and on the Revolving Commitment
Termination Date.  Interest on each
Swingline Loan shall be payable on the maturity date of such Loan, which shall
be the last day of the Interest Period applicable thereto, and on the Revolving
Commitment Termination Date. Interest on any Loan which is converted into a
Loan of another Type or which is repaid or prepaid shall be payable on the date
of such conversion or on the date of any such repayment or prepayment (on the
amount repaid or prepaid) thereof.  All
Default Interest shall be payable on demand.

 

 

The Administrative Agent
shall determine each interest rate applicable to the Loans hereunder and shall
promptly notify the Borrower and the Lenders of such rate in writing (or by
telephone, promptly confirmed in writing). 
Any such determination shall be conclusive and binding for all purposes,
absent manifest error.

 

Fees.

 

The Borrower shall pay to
the Administrative Agent for its own account fees in the amounts and at the
times previously agreed upon by the Borrower and the Administrative Agent.

 

Commitment Fee. The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee, which
shall accrue at the Applicable Percentage (determined daily in accordance with
Schedule 1.1(a) on the daily amount of the unused Revolving Commitment of
such Lender during the Availability Period. 
For purposes of computing commitment fees with respect to the Revolving
Commitments, the Revolving Commitment of each Lender shall be deemed used to
the extent of the outstanding Revolving Loans and LC Exposure of such Lender.

 

Letter of Credit Fees. The Borrower agrees to pay (i) to the
Administrative Agent, for the account of each Lender, a letter of credit fee
with respect to its participation in each Letter of Credit, which shall accrue
at the Applicable Margin then in effect on the average daily amount of such
Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed
LC Disbursements) attributable to such Letter of Credit during the period from
and including the date of issuance of such Letter of Credit to but excluding
the date on which such Letter expires or is drawn in full (including without
limitation any LC Exposure that remains outstanding after the Revolving
Commitment Termination Date) and (ii) to the Issuing Bank for its own account a
fronting fee, which shall accrue at the rate of 0.125% per annum on the average
daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the Availability Period (or until the
date that such Letter of Credit is irrevocably cancelled, whichever is later),
as well as the Issuing Bank’s standard fees with respect to  issuance, amendment, renewal or extension of
any Letter of Credit or processing of drawings thereunder.

 

Payments. 
The fees described in clause (a) and (b) above shall be payable
quarterly in arrears on the last day of each March, June, September and
December, commencing on June 30, 2004 and on the Revolving Commitment
Termination Date (and if later, the date the Loans and LC Exposure shall be
repaid in their entirety).

 

Computation of Interest and Fees.

 

All computations of interest and fees
hereunder shall be made on the basis of a year of 360 days for the actual
number of days (including the first day but excluding the last day) occurring
in the period for which such interest or fees are payable (to the extent
computed on the basis of days elapsed). Each determination by the
Administrative Agent of an interest amount or fee hereunder shall be made in
good faith and, except for manifest error, shall be final, conclusive and
binding for all purposes.

 

Inability to Determine Interest Rates.  If prior to the commencement of any Interest
Period for any Eurodollar Borrowing, the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower and the Co-Borrower, absent manifest error) that, by reason of
circumstances affecting the relevant interbank market, adequate means do not
exist for ascertaining LIBOR for such Interest Period, or

 

 

the Administrative Agent
shall have received notice from the Required Lenders that the Adjusted LIBO
Rate does not adequately and fairly reflect the cost to such Lenders (or
Lender, as the case may be) of making, funding or maintaining their (or its, as
the case may be)  Eurodollar Loans for
such Interest Period,

 

the Administrative Agent shall give written notice (or telephonic
notice, promptly confirmed in writing) to the Borrower and to the Lenders as
soon as practicable thereafter. In the case of Eurodollar Loans, until the
Administrative Agent shall notify the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) the obligations
of the Lenders to make Eurodollar Revolving Loans or to continue or convert
outstanding Loans as or into Eurodollar Loans shall be suspended and  (ii) all such affected Loans shall be
converted into Base Rate Loans on the last day of the then current Interest
Period applicable thereto unless the Borrower, or Co-Borrower as the case may
be, prepays such Loans in accordance with this Agreement. Unless the Borrower
notifies the Administrative Agent at least one Business Day before the date of
any Eurodollar Revolving Borrowing for which a Notice of Revolving Borrowing
has previously been given that it elects not to borrow on such date, then such
Revolving Borrowing shall be made as a Base Rate Borrowing.

 

Illegality.  If any Change in Law shall
make it unlawful or impossible for any Lender to make, maintain or fund any
Eurodollar Loan and such Lender shall so notify the Administrative Agent, the
Administrative Agent shall promptly give notice thereof to the Borrower and the
other Lenders, whereupon until such Lender notifies the Administrative Agent
and the Borrower that the circumstances giving rise to such suspension no
longer exist, the obligation of such Lender to make Eurodollar Revolving Loans,
or to continue or convert outstanding Loans as or into Eurodollar Loans, shall
be suspended.  In the case of the making
of a Eurodollar Revolving Borrowing, such Lender’s Revolving Loan shall be made
as a Base Rate Loan as part of the same Revolving Borrowing for the same Interest
Period and if the affected Eurodollar Loan is then outstanding, such Loan shall
be converted to a Base Rate Loan either (i) on the last day of the then current
Interest Period applicable to such Eurodollar Loan if such Lender may lawfully
continue to maintain such Loan to such date or (ii) immediately if such Lender
shall determine that it may not lawfully continue to maintain such Eurodollar
Loan to such date.  Notwithstanding the
foregoing, the affected Lender shall, prior to giving such notice to the Administrative
Agent, designate a different Applicable Lending Office if such designation
would avoid the need for giving such notice and if such designation would not
otherwise be disadvantageous to such Lender in the good faith exercise of its
discretion.

 

Increased
Costs.

 

If any Change in Law
shall:

 

impose, modify or deem
applicable any reserve, special deposit or similar requirement that is not
otherwise included in the determination of the Adjusted LIBO Rate hereunder
against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the  Adjusted LIBO Rate) or the Issuing Bank; or

 

impose on any Lender or on
the Issuing Bank or the eurodollar interbank market any other condition
affecting this Agreement  or any
Eurodollar Loans made by such Lender or any Letter of Credit or any
participation therein;

 

and the result of the foregoing is to increase the cost to such Lender
of making, converting into, continuing or maintaining a Eurodollar Loan or to
increase the cost to such Lender or the Issuing Bank of participating in or
issuing any Letter of Credit  or to
reduce the amount received or receivable by such Lender or the Issuing Bank
hereunder (whether of principal, interest or any other amount), then the
Borrower shall promptly pay, upon written notice from and demand by such Lender
on the Borrower (with a copy of such notice and demand to the Administrative

 

 

Agent), to the Administrative Agent for the account of such Lender, within
five Business Days after the date of such notice and demand, additional amount
or amounts sufficient to compensate such Lender or the Issuing Bank, as the
case may be, for such additional costs incurred or reduction suffered.

 

If any Lender or the Issuing
Bank shall have determined that on or after the date of this Agreement any
Change in Law regarding capital requirements has or would have the effect of
reducing the rate of return on such Lender’s or the Issuing Bank’s capital (or
on the capital of such Lender’s or the Issuing Bank’s parent corporation) as a
consequence of its obligations hereunder or under or in respect of any Letter
of Credit to a level below that which such Lender or the Issuing Bank or such
Lender’s or the Issuing Bank’s parent corporation could have achieved but for
such Change in Law (taking into consideration such Lender’s or the Issuing
Bank’s policies or the policies of such Lender’s or the Issuing Bank’s parent
corporation with respect to capital adequacy) then, from time to time, within
five (5) Business Days after receipt by the Borrower of written demand by such
Lender (with a copy thereof to the Administrative Agent), the Borrower shall
pay to such Lender such additional amounts as will compensate such Lender or
the Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation for
any such reduction suffered.

 

A certificate of a Lender
or the Issuing Bank setting forth the amount or amounts necessary to compensate
such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent
corporation, as the case may be, specified in paragraph (a) or (b)  of this Section shall be delivered to
the Borrower (with a copy to the Administrative Agent) and  shall be conclusive, absent manifest
error.  The Borrower shall pay any such
Lender or the Issuing Bank, as the case may be, such amount or amounts within
10 days after receipt thereof.

 

Failure or delay on the
part of any Lender or the Issuing Bank to demand compensation pursuant to this
Section shall not constitute a waiver of such Lender’s or the Issuing
Bank’s right to demand such compensation;

 

Funding Indemnity.  In the event of (a) the payment of any
principal of a Eurodollar Loan  other
than on the last day of the Interest Period applicable thereto (including as a
result of an Event of Default), (b) the conversion or continuation of a
Eurodollar Loan other than on the last day of the Interest Period applicable
thereto, or (c) the failure by the Borrower or the Co-Borrower to borrow,
prepay, convert or continue any Eurodollar Loan on the date specified in any
applicable notice (regardless of whether such notice is withdrawn or revoked),
then, in any such event,  the Borrower or
the Co-Borrower shall compensate each Lender, within five (5) Business Days
after written demand from such Lender, 
for any loss, cost or expense attributable to such event. In the case of
a Eurodollar Loan, such loss, cost or expense shall be deemed to include an
amount determined by such Lender to be the excess, if any, of  (A) the amount of interest that would have
accrued on the principal amount of such Eurodollar Loan if such event had not
occurred at the Adjusted LIBO Rate applicable to such Eurodollar Loan for the
period from the date of such event to the last day of the then current Interest
Period therefor (or in the case of a failure to borrow, convert or continue,
for the period that would have been the Interest Period for such Eurodollar
Loan) over (B) the amount of interest that would accrue on the principal amount
of such Eurodollar Loan for the same period if the Adjusted LIBO Rate were set
on the date such Eurodollar Loan was prepaid or converted or the date on which
the Borrower failed to borrow, convert or continue such  Eurodollar Loan.   A certificate as to any additional amount
payable under this Section 2.18 submitted to the Borrower or by any
Lender (with a copy to the Administrative Agent) shall be conclusive, absent
manifest error.

 

Taxes.

 

Any and all payments by
or on account of any obligation of the Borrower and the Co-Borrower hereunder
shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; provided, that if the Borrower or the Co-Borrower shall
be required to deduct any Indemnified Taxes or Other Taxes from such payments,
then (i) the sum payable shall be increased as necessary so that after making
all required deductions (including deductions

 

 

applicable to additional
sums payable under this Section) the Administrative Agent, any Lender or the
Issuing Bank (as the case may be) shall receive an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower or the
Co-Borrower, as the case may be, shall make such deductions and (iii) the
Borrower or the Co-Borrower, as the case may be, shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.

 

In addition, the Borrower
and the Co-Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

 

The Borrower and the
Co-Borrower shall indemnify the Administrative Agent, each Lender and the
Issuing Bank, within five (5) Business Days after written demand therefor, for
the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Lender or the Issuing Bank, as the case may be, on
or with respect to any payment by or on account of any obligation of the
Borrower or the Co-Borrower hereunder (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section) and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental
Authority.  A certificate as to the
amount of such payment or liability delivered to the Borrower by a Lender or
the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf
of a Lender or the Issuing Bank, shall be conclusive absent manifest error.

 

As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by the Borrower or the
Co-Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

 

Any Foreign Lender that
is entitled to an exemption from or reduction of withholding tax under the Code
or any treaty to which the United States is a party, with respect to payments
under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate. 
Without limiting the generality of the foregoing, each Foreign Lender
agrees that it will deliver to the Administrative Agent and the Borrower (or in
the case of a Participant, to the Lender from which the related participation
shall have been purchased), as appropriate, two (2) duly completed copies of
(i) Internal Revenue Service Form W-8 ECI, or any successor form thereto,
certifying that the payments received from the Borrower or the Co-Borrower
hereunder are effectively connected with such Foreign Lender’s conduct of a
trade or business in the United States; or (ii) Internal Revenue Service Form
W-8 BEN, or any successor form thereto, certifying that such Foreign Lender is
entitled to benefits under an income tax treaty to which the United States is a
party which reduces the rate of withholding tax on payments of interest; or
(iii) Internal Revenue Service Form W-8 BEN, or any successor form prescribed
by the Internal Revenue Service, together with a certificate (A) establishing
that the payment to the foreign lender qualifies as “portfolio interest” exempt
from U.S. withholding tax under Code section 871(h) or 881(c), and (B)
stating that (1) the Foreign

 

 

Lender is not a bank for
purposes of Code section 881(c)(3)(A), or the obligation of the
Borrower and the Co-Borrower hereunder is not, with respect to such Foreign
Lender, a loan agreement entered into in the ordinary course of its trade or
business, within the meaning of that section; (2) the Foreign Lender is not a
10% shareholder of the Borrower or the Co-Borrower within the meaning of Code
section 871(h)(3) or 881(c)(3)(B); and (3) the Foreign Lender is not a
controlled foreign corporation that is related to the Borrower or the
Co-Borrower within the meaning of Code section 881(c)(3)(C); or (iv) such
other Internal Revenue Service forms as may be applicable to the Foreign
Lender, including Forms W-8 IMY or W-8 EXP. 
Each such Foreign Lender shall deliver to the Borrower and the
Administrative Agent such forms on or before the date that it becomes a party
to this Agreement (or in the case of a Participant, on or before the date such
Participant purchases the related participation).  In addition, each such Foreign Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Foreign Lender. 
Each such Foreign Lender shall promptly notify the Borrower and the
Administrative Agent at any time that it determines that it is no longer in a
position to provide any previously delivered certificate to the Borrower (or
any other form of certification adopted by the Internal Revenue Service for
such purpose).

 

Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

 

The Borrower and the
Co-Borrower shall make each payment required to be made by it hereunder
(whether of principal, interest, fees or reimbursement of LC Disbursements, or
of amounts payable under Section 2.17, 2.18 or 2.19,
or otherwise) prior to 12:00 noon, on the date when due, in immediately
available funds, without set-off or counterclaim.  Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon.  All such payments
shall be made to the Administrative Agent at the Payment Office, except
payments to be made directly to the Issuing Bank or Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.17,
2.18 and 2.19 and 10.3 shall be made directly to the
Persons entitled thereto.  The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt
thereof.  If any payment hereunder shall
be due on a day that is not a Business Day, the date for payment shall be
extended to the next succeeding Business Day, and, in the case of any payment
accruing interest, interest thereon shall be made payable for the period of
such extension.  All payments hereunder
shall be made in Dollars.

 

If at any time insufficient
funds are received by and available to the Administrative Agent to pay fully
all amounts of principal, unreimbursed LC Disbursements, interest and fees then
due hereunder, such funds shall be applied (i) first, towards payment of
interest and fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such
parties, and (ii) second, towards payment of principal and unreimbursed LC
Disbursements then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and unreimbursed LC Disbursements then
due to such parties.

 

If any Lender shall, by
exercising any right of set-off or counterclaim or otherwise, obtain payment in
respect of any principal of or interest on any of its Revolving Loans or
participations in LC Disbursements or Swingline Loans that would result in such
Lender receiving payment of a greater proportion of the aggregate amount of its
Revolving Loans and participations in LC

 

 

Disbursements and
Swingline Loans and accrued interest thereon than the proportion received by
any other Lender, then the Lender receiving such greater proportion shall
purchase (for cash at face value) participations in the Revolving Loans and
participations in LC Disbursements and Swingline Loans of other Lenders to the
extent necessary so that the benefit of all such payments shall be shared by
the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Revolving Loans and participations in LC
Disbursements and Swingline Loans; provided, that (i) if any such
participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment
made by the Borrower or the Co-Borrower pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or participations in LC Disbursements or Swingline Loans to any assignee
or participant, other than to the Borrower or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply).  The Borrower and the Co-Borrower each
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower or the Co-Borrower
rights of set-off and counterclaim with respect to such participation as fully
as if such Lender were a direct creditor of the Borrower or the Co-Borrower in
the amount of such participation.

 

Unless the Administrative
Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Administrative Agent for the account of the Lenders
or the Issuing Bank hereunder that the Borrower or the Co-Borrower, as the case
may be, will not make such payment, the Administrative Agent may assume that
the Borrower or the Co-Borrower, as the case may be, has made such payment on
such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Bank, as the case may be, the amount
or amounts due.  In such event, if the
Borrower or the Co-Borrower has not in fact made such payment, then each of the
Lenders or the Issuing Bank, as the case may be, severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment
to the Administrative Agent, at the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

 

If any Lender shall fail
to make any payment required to be made by it pursuant to  Section 2.5(b),
2.20(c) or (d) or 10.3(d), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for the account of such Lender to satisfy
such Lender’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

 

Mitigation of Obligations.  (a)  If
any Lender requests compensation under Section 2.17, or if the
Borrower or the Co-Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.19,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the sole judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable under Section 2.17 or Section 2.19,
as the case may be,  in the future and
(ii) would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous 
to such Lender.  The

 

 

Borrower
or the Co-Borrower each hereby agrees to pay all costs and expenses incurred by
any Lender in connection with such designation or assignment.

 

(b)                                 If
any Lender requests compensation under Section 2.17, or if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority of the account of any Lender pursuant to Section 2.19,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole  expense and
effort, upon notice to such Lender and the Administrative Agent, require such
Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions set forth in Section 10.4(b) all its
interests, rights and obligations under this Agreement to an assignee that
shall assume such obligations (which assignee may be another Lender); provided,
that (i) the Borrower shall have received the prior written consent of the
Administrative Agent, which consent shall not be unreasonably withheld, (ii)
such Lender shall have received payment of an amount equal to the outstanding
principal amount of all Loans owed to it, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder, from the assignee (in the
case of such outstanding principal and accrued interest) and from the Borrower
(in the case of all other amounts) and (iii) in the case of a claim for
compensation under Section 2.17 or payments required to be made
pursuant to Section 2.19, such assignment will result in a
reduction in such compensation or payments. 
A Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment
and delegation cease to apply.

 

(c)                                  The
Borrower shall not be required to compensate a Lender or the Issuing Bank under
Section 2.17, 2.18 or 2.19 for any taxes, increased
costs or reductions incurred more than six (6) months prior to the date that
such Lender or the Issuing Bank notifies the Borrower of such increased costs
or reductions and of such Lender’s or the Issuing Bank’s intention to claim
compensation therefor;  provided
further, that if any Change in Law giving rise to such increased costs or
reductions is retroactive,  then such
six-month period shall be extended to include the period of such retroactive
effect.

 

Letters
of Credit.

 

During the Availability
Period, the Issuing Bank, in reliance upon the agreements of the other Lenders
pursuant to Section 2.22(d), agrees to issue, at the request
of the Borrower, Letters of Credit for the account of the Borrower on the terms
and conditions hereinafter set forth; provided, that (i) each Letter of
Credit shall expire on the earlier of (A) the date one year after the date of
issuance of such Letter of Credit (or in the case of any renewal or extension
thereof, one year after such renewal or extension) and (B) the date that is
five (5) Business Days prior to the Revolving Commitment Termination Date; (ii)
each Letter of Credit shall be in a stated amount of at least $250,000; and
(iii) the Borrower may not request any Letter of Credit, if, after giving
effect to such issuance (A) the aggregate LC Exposure would exceed the LC
Commitment or (B) the aggregate LC Exposure, plus
the aggregate outstanding Revolving Loans of all Lenders, would exceed the
Aggregate Revolving Commitments.  Upon the
issuance of each Letter of Credit each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Issuing Bank
without recourse a participation in such Letter of Credit equal to such
Lender’s Pro Rata Share of the aggregate amount available to be drawn under
such Letter of Credit.  Each issuance of
a Letter of Credit shall be deemed to utilize the Revolving Commitment of each
Lender by an amount equal to the amount of such participation.

 

To request the issuance
of a Letter of Credit (or any amendment, renewal or extension of an outstanding
Letter of Credit), the Borrower shall give the Issuing Bank and the
Administrative

 

 

Agent irrevocable written
notice at least three (3) Business Days prior to the requested date of such
issuance specifying the date (which shall be a Business Day) such Letter of
Credit is to be issued (or amended, extended or renewed, as the case may be),
the expiration date of such Letter of Credit, the amount of such Letter of
Credit, the name and address of the beneficiary 
thereof and such other information as shall be necessary to prepare,
amend, renew or extend such Letter of Credit. In addition to the satisfaction
of the conditions in Article III, the issuance of such Letter of Credit
(or any amendment which increases the amount of such Letter of Credit) will be
subject to the further conditions that such Letter of Credit shall be in such
form and contain such terms as the Issuing Bank shall approve and that the
Borrower shall have executed and delivered any additional applications,
agreements and instruments relating to such Letter of Credit as the Issuing
Bank shall reasonably require; provided, that in the event of any
conflict between such applications, agreements or instruments and this
Agreement, the terms of this Agreement shall control.

 

At least two Business
Days prior to the issuance of any Letter of Credit, the Issuing Bank will
confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received such notice and if not, the Issuing Bank will
provide the Administrative Agent with a copy thereof.  Unless the Issuing Bank has received notice
from the Administrative Agent on or before the Business Day immediately
preceding the date the Issuing Bank is to issue the requested Letter of Credit
(1) directing the Issuing Bank not to issue the Letter of Credit because such
issuance is not then permitted hereunder because of the limitations set forth
in Section 2.22(a) or that one or more conditions specified
in Article III are not then satisfied, then, subject to the terms and
conditions hereof, the Issuing Bank shall, on the requested date, issue such
Letter of Credit in accordance with the Issuing Bank’s usual and customary
business practices.

 

The Issuing Bank shall
examine all documents purporting to represent a demand for payment under a
Letter of Credit promptly following its receipt thereof.  The Issuing Bank shall notify the Borrower
and the Administrative Agent of such demand for payment and whether the Issuing
Bank has made or will make a LC Disbursement thereunder; provided, that
any failure to give or delay in giving such notice shall not relieve the Borrower
of its obligation to reimburse the Issuing Bank and the Lenders with respect to
such LC Disbursement. The Borrower shall be irrevocably and unconditionally
obligated to reimburse the Issuing Bank for any LC Disbursements paid by the
Issuing Bank in respect of such drawing, without presentment, demand or other
formalities of any kind.  Unless the
Borrower shall have notified the Issuing Bank and the Administrative Agent
prior to 11:00 a.m. on the Business Day immediately prior to the date on which
such drawing is honored that the Borrower intends to reimburse the Issuing Bank
for the amount of such drawing in funds other than from the proceeds of
Revolving Loans, the Borrower shall be deemed to have timely given a Notice of
Revolving Borrowing to the Administrative Agent requesting the Lenders to make
a Base Rate Borrowing  on the date on
which such drawing is honored in an exact amount due to the Issuing Bank; provided,  that for purposes solely of such Borrowing,
the conditions precedents set forth in Section 3.2 hereof and the
minimum borrowing limitations set forth in Section 2.3 hereof shall
not be applicable. The Administrative Agent shall notify the Lenders of such
Borrowing in accordance with Section 2.3, and each Lender shall
make the proceeds of its Base Rate Loan included in such Borrowing available to
the Administrative Agent for the account of the Issuing Bank in accordance with

 

 

Section 2.6. 
The proceeds of such Borrowing shall be applied directly by the
Administrative Agent to reimburse the Issuing Bank for such LC Disbursement.

 

If for any reason a Base
Rate Borrowing may not be (as determined in the sole discretion of the
Administrative Agent), or is not, made in accordance with the foregoing
provisions, then each Lender (other than the Issuing Bank) shall be obligated
to fund the participation that such Lender purchased pursuant to
subsection (a) in an amount equal to its Pro Rata Share  of such LC Disbursement on and as of the date which such
Base Rate Borrowing should have occurred.  Each Lender’s
obligation to fund its participation 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 that such Lender or
any other Person may have against the Issuing Bank or any other Person for any
reason whatsoever, (ii) the existence of a Default or an Event of Default or
the termination of the Aggregate Revolving Commitments, (iii) any adverse
change in the condition (financial or otherwise) of the Borrower or  any of its Subsidiaries, (iv) any breach of
this Agreement by the Borrower or any other Lender, (v) any amendment, renewal
or extension of any Letter of Credit or (vi) any other circumstance, happening
or event whatsoever, whether or not similar to any of the foregoing. On the
date that such participation is required to be funded, each Lender shall
promptly transfer, in immediately available funds, the amount of its
participation to the Administrative Agent for the account of the Issuing Bank.
Whenever, at any time after the Issuing Bank has received from any such Lender
the funds for its participation in a LC Disbursement, the Issuing Bank (or the
Administrative Agent on its behalf) receives any payment on account thereof, the
Administrative Agent or the Issuing Bank, as the case may be, will distribute
to such Lender its Pro Rata Share of such payment; provided, that if
such payment is required to be returned for any reason to the Borrower or to a
trustee, receiver, liquidator, custodian or similar official in any bankruptcy
proceeding, such Lender will return to the Administrative Agent or the Issuing
Bank any portion thereof previously distributed by the Administrative Agent or
the Issuing Bank to it.

 

To the extent that any
Lender shall fail to pay any amount required to be paid pursuant to paragraph
(d) of this Section 2.22 on the due date therefor, such Lender
shall pay interest to the Issuing Bank (through the Administrative Agent) on
such amount from such due date to the date such payment is made at a rate per
annum equal to the Federal Funds Rate; provided, that if such Lender
shall fail to make such payment to the Issuing Bank within three (3) Business
Days of such due date, then, retroactively to the due date, such Lender shall
be obligated to pay interest on such amount at the Base Rate plus an additional
2% per annum.

 

If any Event of Default
shall occur and be continuing, on the Business Day that the Borrower receives
notice from the Administrative Agent or the Required Lenders demanding the
deposit of cash collateral pursuant to this paragraph, the Borrower shall
deposit in an account with the Administrative Agent, in the name of the
Administrative Agent and for the benefit of the Issuing Bank and the Lenders,
an amount in cash equal to 105% of the LC Exposure as of such date plus any
accrued and unpaid interest thereon; provided, that the obligation to
deposit such cash collateral shall 
become effective immediately, and such deposit shall become immediately
due and payable, with demand or notice of any kind, upon the occurrence of any
Event of Default with respect to the Borrower described in clause (h) or (i) of
Section 8.1.  Such deposit
shall be held by the Administrative Agent as collateral for the payment and performance
of the obligations of the Borrower under this Agreement.  The Administrative Agent shall have

 

 

exclusive dominion and
control, including the exclusive right of withdrawal, over such account.  Other than any interest earned on the
investment of such deposits, which investments shall be made at the option and
sole discretion of the Administrative Agent and at the Borrower’s risk and
expense, such deposits shall not bear interest. 
Interest and profits, if any, on such investments shall accumulate in
such account.  Moneys in such account
shall applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it had not been reimbursed and to the extent so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated, with the consent of the Required Lenders, be applied to
satisfy other obligations of the Borrower under this Agreement.  If the Borrower is required to provide an
amount of cash collateral hereunder as a result of the occurrence of an Event
of Default, such amount (to the extent not so applied as aforesaid) shall be
returned to the Borrower with three Business Days after all Events of Default
have been cured or waived.

 

Promptly following the
end of each fiscal quarter, the Issuing Bank shall deliver (through the
Administrative Agent) to each Lender and the Borrower a report describing the
aggregate Letters of Credit outstanding at the end of such fiscal quarter.  Upon the request of any Lender from time to
time, the Issuing Bank shall deliver to such Lender any other information
reasonably requested by such Lender with respect to each Letter of Credit then
outstanding.

 

The Borrower’s obligation
to reimburse LC Disbursements hereunder shall be absolute, unconditional and
irrevocable and shall be performed strictly in accordance with the terms of
this Agreement under all circumstances whatsoever and irrespective of any of
the following circumstances:

 

Any lack of validity or
enforceability of any Letter of Credit or this Agreement;

 

The existence of any claim,
set-off, defense or other right which the Borrower or any Subsidiary or
Affiliate of the Borrower may have at any time against a beneficiary or any
transferee of any Letter of Credit (or any Persons or entities for whom any
such beneficiary or transferee may be acting), any Lender (including the
Issuing Bank) or any other Person, whether in connection with this Agreement or
the Letter of Credit or any document related hereto or thereto or any unrelated
transaction;

 

Any draft or other document
presented under a Letter of Credit proving to be forged, fraudulent or invalid
in any respect or any statement therein being untrue or inaccurate in any
respect;

 

Payment by the Issuing Bank
under a Letter of Credit against presentation of a draft or other document to
the Issuing Bank that does not comply with the terms of such Letter of Credit;

 

Any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Borrower’s obligations
hereunder; or

 

The existence of a Default
or an Event of Default.

 

 

Neither the Administrative Agent, the Issuing Bank, the Lenders nor any
Related Party of any of the foregoing shall have any liability or
responsibility by reason of or in connection with the issuance or transfer of
any Letter of Credit or any payment or failure to make any payment thereunder
(irrespective of any of the circumstances referred to above), or any error,
omission, interruption, loss or delay in transmission or delivery of any draft,
notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence  arising from causes beyond the control of the
Issuing Bank; provided, that the foregoing shall not be construed to
excuse the Issuing Bank from liability to the Borrower to the extent of any
direct damages (as opposed to consequential damages, claims in respect of which
are hereby waived by the Borrower to the extent permitted by applicable law)
suffered by the Borrower that are caused by the Issuing Bank’s failure to
exercise care when determining whether drafts or other documents presented
under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree, that in
the absence of gross negligence or willful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the foregoing and without limiting the generality thereof,
the parties agree that, with respect to documents presented that appear on
their face to be in substantial compliance with the terms of a Letter of
Credit, the Issuing Bank may, in its sole discretion, either accept and make
payment upon such documents without responsibility for further investigation,
regardless of any notice or information to the contrary, or refuse to accept
and make payment upon such documents if such documents are not in strict
compliance with the terms of such Letter of Credit.

 

Each Letter of Credit
shall be subject to the Uniform Customs and Practices for Documentary Credits
(1993 Revision), International Chamber of Commerce Publication No. 500, as the
same may be amended from time to time, 
and, to the extent not inconsistent therewith, the governing law of this
Agreement set forth in Section 10.5.

 

Guaranty Obligations; Waivers.

 

The Borrower hereby
irrevocably and unconditionally guarantees the punctual payment when due,
whether at stated maturity, by acceleration or otherwise, of all Obligations
owing by the Co-Borrower to the Administrative Agent and the Lenders, or any of
them, under this Agreement and the other Loan Documents, including all
renewals, extensions, modifications and refinancings thereof, now or hereafter
owing, whether for principal, interest, premiums, fees, expenses or otherwise
(collectively, the “Borrower’s  Guaranteed
Obligations”).  Any and
all payments by the Borrower hereunder shall be made free and clear of and
without deduction for any set-off, counterclaim, or withholding so that, in
each case, the Administrative Agent and the Lenders will receive, after giving
effect to any Taxes, the full amount that it would otherwise be entitled to
receive with respect to the Borrower’s Guaranteed Obligations.  The Borrower acknowledges and agrees that
this is a guaranty of payment when due, and not of collection, and that this
guaranty may be enforced up to the full amount of the Borrower’s Guaranteed
Obligations without proceeding against the Co-Borrower, against any security
for the Borrower’s Guaranteed Obligations or under any other guaranty covering
any portion of the Borrower’s Guaranteed Obligations.

 

The Co-Borrower hereby
irrevocably and unconditionally guarantees the punctual payment when due,
whether at stated maturity, by acceleration or otherwise, of all Obligations
owing by the Borrower to the Administrative Agent and the Lenders, or any of
them, under this Agreement

 

 

and the other Loan
Documents, including all renewals, extensions, modifications and refinancings
thereof, now or hereafter owing, whether for principal, interest, premiums,
fees, expenses or otherwise (collectively, the “Co-Borrower’s
Guaranteed Obligations”).  Any and all payments by the Co-Borrower hereunder
shall be made free and clear of and without deduction for any set-off,
counterclaim, or withholding so that, in each case, the Administrative Agent
and the Lenders will receive, after giving effect to any Taxes, the full amount
that it would otherwise be entitled to receive with respect to the
Co-Borrower’s Guaranteed Obligations. 
The Co-Borrower acknowledges and agrees that this is a guaranty of
payment when due, and not of collection, and that this guaranty may be enforced
up to the full amount of the Co-Borrower’s Guaranteed Obligations without
proceeding against the Borrower, against any security for the Co-Borrower’s
Guaranteed Obligations or under any other guaranty covering any portion of the
Co-Borrower’s Guaranteed Obligations.

 

Guaranty Absolute. 
(i) The Borrower guarantees that the Borrower’s Guaranteed Obligations
will be paid strictly in accordance with the terms of the Loan Documents and
(ii) the Co-Borrower guarantees that the Co-Borrower’s Guaranteed Obligations
will be paid strictly in accordance with the terms of the Loan Documents.  The liability of each of the Borrower and the
Co-Borrower under their respective guaranties contained in this Agreement shall
be absolute and unconditional in accordance with their terms and shall remain
in full force and effect without regard to, and shall not be released,
suspended, discharged, terminated or otherwise affected by, any circumstance or
occurrence whatsoever, including, without limitation, the following (whether or
not the Borrower or the Co-Borrower, as the case may be, consents thereto or
has notice thereof):

 

(1)                                  the genuineness,
validity, regularity, enforceability or any future amendment of, or change in,
the Obligations of the primary obligor under this Agreement, any other Loan
Document or any other agreement, document or instrument to which such primary
obligor is or may become a party;

 

(2)                                  the absence of any
action to enforce this Agreement (including this Section 2.23) or
any other Loan Document or the waiver or consent by any guaranteed party with
respect to any of the provisions thereof;

 

(3)                                  the existence, value
or condition of, or failure to perfect its Lien against, any security for the
Obligations or any action, or the absence of any action, by any Lender in
respect thereof (including the release of any such security);

 

(4)                                  the insolvency of the
primary obligor; or

 

(5)                                  any other action or
circumstances which might otherwise constitute a legal or equitable discharge
or defense of a surety or guarantor.

 

The Borrower and the Co-Borrower
each shall be regarded, and shall be in the same position, as principal debtor
with respect to the Obligations guaranteed under this Section 2.23.

 

Each of the Borrower and
the Co-Borrower expressly waives all rights it may now or in the future have
under any statute, at common law, at law or in equity or otherwise, to compel
the Administrative Agent or any Lender to proceed in respect of the Obligations
against the other, any Guarantor or any other Person before proceeding against,
or as a condition to proceeding against, such Borrower or Co-Borrower, as the
case may be.  Each of the Borrower and
the Co-Borrower further expressly waives and agrees not to assert or take
advantage of any defense

 

 

based upon the failure of
the Administrative Agent or any Lender to commence an action in respect of the
Obligations against the other, any Guarantor or any other Person.  Each of the Borrower and the Co-Borrower
agrees that any notice or directive given at any time to the Administrative
Agent or any Lender which is inconsistent with the waivers in the preceding two
sentences shall be null and void and may be ignored by the Administrative Agent
or such Lender, and may not be pleaded or introduced as evidence in any
litigation relating to the Obligations of such Borrower or Co-Borrower, as the
case may be, unless the Required Lenders have specifically agreed otherwise in
writing.  The foregoing waivers are of
the essence of the transaction contemplated by the Loan Documents and, but for
the provisions of this Section 2.23 and such waivers, the Lenders
would decline to make the Loans.

 

The Borrower and the
Co-Borrower each waives diligence, presentment and demand (whether for
non-payment or protest or of acceptance, maturity, extension of time, change in
nature or form of the Obligations, acceptance of security, release of security,
composition or agreement arrived at as to the amount of, or the terms of, the
Obligations, notice of adverse change in any other borrower’s financial
condition or any other fact which might materially increase the risk to such
Borrower or Co-Borrower, as the case may be) with respect to any of the
Obligations or all other demands whatsoever, except to the extent specifically
set forth herein or in the other Loan Documents.  To the extent permitted by applicable law,
the Borrower and the Co-Borrower each waive the benefit of all provisions of
law which are in conflict with the terms of this Agreement.  The Borrower and the Co-Borrower each represent,
warrant and agree that its Obligations are not and shall not be subject to any
counterclaims, offsets or defenses of any kind against the Lender Parties, the
other borrower or any other guarantor of the Obligations now existing or which
may arise in the future.

 

In the event the
Co-Borrower shall make a payment in respect of the Loans or any other
Obligations or shall suffer any loss as a result of any realization upon any of
its assets pursuant to any Loan Document, the Borrower shall, subject to the
last sentence of this clause (e), contribute to the Co-Borrower an amount equal
to such payment made, or loss suffered, by the Co-Borrower. Nothing in this Section 2.23
shall affect each of the Borrower’s or the Co-Borrower’s several liability for
the entire amount of the Obligations. 
The Borrower covenants and agrees that its obligation to make a
contribution hereunder to the Co-Borrower and its right to receive any
contribution hereunder from the Co-Borrower shall be subordinate and junior in
right of payment to the Obligations.

 

(f)                                    Notwithstanding
anything to the contrary in this Agreement or in any other Loan Document, and
except as set forth in clause (e) above, the Borrower and the Co-Borrower each
hereby  expressly and irrevocably
subordinates to payment of the Obligations any and all rights at law or in
equity to subrogation, 
reimbursement,  exoneration,
contribution, indemnification or set off and any and all defenses available to
a surety, guarantor or accommodation co-obligor until the Obligations are
indefeasibly paid in full in cash and the Commitments have been
terminated.  The Borrower and the
Co-Borrower each acknowledges and agrees that this subordination is intended to
benefit the Lenders and shall not limit or otherwise affect such Borrower’s or
Co-Borrower’s, as the case may be, liability hereunder or the enforceability of
this Section 2.23, and that the Lenders and their respective
successors and assigns are intended third party beneficiaries of the waivers
and agreements set forth in this Section 2.23.

 

Savings
Clause.

 

It is the intent of the
Lenders, the Administrative Agent, the Borrower and the Co-Borrower that the
Co-Borrower’s Maximum Obligations shall be in, but not in excess of:

 

 

(i)                                     in a case or
proceeding commenced by or against the Co-Borrower under the Bankruptcy Code on
or within one year from the date on which such Obligations are incurred, the
maximum amount which would not otherwise cause such Obligations to be avoidable
or unenforceable against the Co-Borrower under (A) Section 548 of the
Bankruptcy Code or (B) any state fraudulent transfer or fraudulent
conveyance act or statute applied in such case or proceeding by virtue of
Section 544 of the Bankruptcy Code; or

 

(ii)                                  in a case or
proceeding commenced by or against the Co-Borrower under the Bankruptcy Code
subsequent to one year from the date on which the Obligations of the
Co-Borrower are incurred, the maximum amount which would not otherwise cause
such Obligations to be avoidable or unenforceable against the Co-Borrower under
any state fraudulent transfer or 
fraudulent conveyance act or statute applied in any such case or
proceeding by virtue of Section 544 of the Bankruptcy Code; or

 

(iii)                               in a case or proceeding
commenced by or against  the Co-Borrower
under any law, statute or regulation other than the Bankruptcy Code (including
any other bankruptcy, reorganization, arrangement, moratorium, readjustment of
debt, dissolution, liquidation or similar debtor relief laws or any state
fraudulent transfer or fraudulent conveyance act or statute applied in any such
case or proceeding), the maximum amount which would not otherwise cause the
Obligations of the Co-Borrower to be avoidable or unenforceable against the
Co-Borrower under such law, statute or regulation.

 

The substantive laws under which the possible avoidance or
unenforceability of the Obligations shall be determined in any such case or
proceeding shall hereinafter be referred to as the “Avoidance Provisions”.

 

(b)                                 To
the end set forth in clause (a) above, but only to the extent that the
Obligations of the Co-Borrower would otherwise be subject to avoidance under
any Avoidance Provisions if the Co-Borrower is not deemed to have received
valuable consideration, fair value or reasonably equivalent value for such
Obligations, and if such Obligations would render the Co-Borrower insolvent,
leave the Co-Borrower with an unreasonably small capital to conduct its
business or cause the Co-Borrower to have incurred debts (or to have intended
to have incurred debts) beyond its ability to pay such debts as they mature, in
each case as of the time any of the Obligations are deemed to have been
incurred under the Avoidance Provisions, then the Maximum Obligations of the
Co-Borrower shall be reduced to that amount which, after giving effect thereto,
would not cause the Obligations, as so reduced, to be subject to avoidance
under the Avoidance Provisions.  This Section 2.24(b)
is intended solely to preserve the rights of the Lenders hereunder and under
the other Loan Documents to the maximum extent that would not cause the
Obligations to be subject to avoidance under the Avoidance Provisions, and
neither the Co-Borrower nor any other Person shall have any right or claim
under this Section 2.24(b) as against any Lender that would not
otherwise be available to such Person under the Avoidance Provisions.

 

Increase in Commitment.

 

So long as no Event of
Default has occurred and is continuing, Borrower may, at any time by written
notice to the Administrative Agent, who shall promptly notify the Lenders,
request that the Aggregate Revolving Commitment be increased up to an amount
not to exceed $150,000,000 (the “Requested Commitment
Amount”).  No Lender (or
any successor thereto) shall have any obligation to increase its Revolving
Commitment or its other obligations under this Agreement and the other Loan
Documents, and any decision by a Lender to increase its Revolving Commitment
shall be made in its sole discretion independently from any other Lender.

 

 

The Borrower shall have
the right to obtain commitments from existing Lenders or new banks or financial
institutions in an aggregate amount such that the existing Revolving
Commitments, plus the aggregate principal amount of the new commitments by the
lenders or new banks or financial institutions does not exceed the Requested
Commitment Amount; provided, however, that (1) the new banks or financial
institutions must be acceptable to the Administrative Agent, which acceptance
will not be unreasonably withheld or delayed, and (2) the new banks or
financial institutions must become parties to this Agreement pursuant to a
joinder agreement in form and substance satisfactory to the Administrative
Agent, pursuant to which (x) they shall be granted all of the rights that
existing Lenders have under this Agreement and the other Loan Documents and (y)
they shall assume the same liabilities and obligations that the existing
Lenders have under this Agreement.

 

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

 

Conditions To Effectiveness. The obligations of the
Lenders (including the Swingline Lender) to make Loans and the obligation of
the Issuing Bank to issue any Letter of Credit hereunder shall not become
effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 10.2).

 

The Administrative Agent
shall have received all fees and other amounts due and payable on or prior to
the Closing Date, including reimbursement or payment of all out-of-pocket
expenses (including reasonable fees, charges and disbursements of counsel to
the Administrative Agent) required to be reimbursed or paid by the Borrower
hereunder, under any other Loan Document and under any agreement with the
Administrative Agent or SunTrust Equitable Securities Corporation, as Arranger.

 

The Administrative
Agent (or its counsel) shall have received the following:

 

a counterpart of this
Agreement signed by or on behalf of each party thereto or written evidence
satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page of this Agreement) that such party has
signed a counterpart of this Agreement;

 

duly executed counterparts
of the Fee Letter.

 

duly executed Notes executed
by the Borrower payable to such Lender; and duly executed Notes executed by the
Co-Borrower payable to such Lender.

 

a duly executed Subsidiary
Guarantee Agreement and Indemnity and Contribution Agreement;

 

 

a certificate of the
Secretary or Assistant Secretary of each Loan Party, attaching and certifying
copies of its bylaws and of the resolutions of its boards of directors,
authorizing the execution, delivery and performance of the Loan Documents to
which it is a party and certifying the name, title and true signature of each
officer of such Loan Party executing the Loan Documents to which it is a party;

 

certified copies of the
articles of incorporation or other charter documents of each Loan Party (other
than the Co-Borrower),  together with
certificates of good standing or existence, as may be available from the Secretary
of State of the jurisdiction of incorporation of such Loan Party (other than
the Co-Borrower) and with respect to the Borrower the States of Texas, Florida,
Ohio, North Carolina and Virginia where the Borrower is required to be
qualified to do business as a foreign corporation;

 

a favorable written opinion
of Kilpatrick Stockton, LLP, counsel to the Loan Parties, addressed to the
Administrative Agent and each of the Lenders, and covering such matters
relating to the Loan Parties, the Loan Documents and the transactions
contemplated therein as the Administrative Agent or the Required Lenders shall
reasonably request;

 

a certificate, dated the
Closing Date and signed by a Responsible Officer, confirming compliance with
the conditions set forth in paragraphs (a), (b) and (c) of Section 3.2
and confirming compliance with Section 6.2 after giving effect to
the use of proceeds of the initial Loans;

 

certified copies of all
consents, approvals, authorizations, registrations and filings and orders
required or advisable to be made or obtained under any Requirement of Law, or
by any Contractual Obligation of each Loan Party, in connection with the
execution, delivery, performance, validity and enforceability of the
Transaction Documents or any of the transactions contemplated thereby, and such
consents, approvals, authorizations, registrations, filings and orders shall be
in full force and effect and all applicable waiting periods shall have expired;
and

 

certificates of insurance
issued on behalf of insurers of the Borrower and all guarantors, describing in
reasonable detail the types and amounts of insurance (property and liability)
maintained by the Borrower and all guarantors, naming Administrative Agent as
additional insured on all liability policies; and

 

 such other documents, certificates, information
or legal opinions as the Administrative Agent or the Lenders may reasonably
request, all in form and substance satisfactory to the Administrative Agent and
the Lenders.

 

Each Credit Event.   The obligation of each Lender to make a Loan
on the occasion of any Borrowing and of the Issuing Bank to issue, amend, renew
or extend any Letter of Credit is subject to the satisfaction of the following
conditions:

 

at the time of and
immediately after giving effect to such Borrowing or the issuance, amendment,
renewal or extension of such Letter of Credit, as applicable, no Default or
Event of Default shall exist; and

 

 

all representations and
warranties of each Loan Party set forth 
in the Loan Documents shall be true and correct in all material respects
on and as of the date of such Borrowing or the date of issuance, amendment,
extension or renewal  of such Letter of
Credit, in each case before and after giving effect thereto; and

 

since the date of the
financial statements of the Borrower described in Section 4.4,
there shall have been no change which has had or could reasonably be expected
to have a Material Adverse Effect.

 

Each Borrowing and each issuance, amendment,
extension or renewal of any Letter of Credit shall be deemed to constitute a
representation and warranty by the Borrower on the date thereof as to the
matters specified in paragraphs (a), (b) and (c) of this Section 3.2.

 

Delivery of Documents.  All of the Loan Documents, certificates,
legal opinions and other documents and papers referred to in this
Article III, unless otherwise specified, shall be delivered to the
Administrative Agent for the account of each of the Lenders and, except for the
Notes, in sufficient counterparts or copies for each of the Lenders and shall
be in form and substance satisfactory in all respects to the Administrative
Agent.

 

Termination
of Existing Credit Agreement.  Upon this Agreement becoming
effective, the Existing Credit Agreement shall automatically terminate (other
than those provisions that by their terms survive termination of the Existing
Credit Agreement), all commitments of the lenders thereunder to fund additional
advances shall terminate automatically, and all amounts outstanding thereunder,
together with all accrued and unpaid interest, fees and other amounts shall be
automatically paid in full by the initial Borrowing hereunder.  Upon termination of the Existing Credit
Agreement, each Lender agrees to promptly return all Notes in favor of such
Lender executed by Borrower in connection with the Existing Credit Agreement.

 

REPRESENTATIONS AND WARRANTIES

 

Each of the Borrower and the Co-Borrower
represents and warrants to the Administrative Agent and each Lender as follows:

 

Existence; Power.  The Borrower 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.

 

Organizational Power;
Authorization.  The execution, delivery and performance by
each Loan Party of the Transaction Documents to which it is a party are within
such Loan Party’s organizational powers and have been duly authorized by all
necessary organizational, and if required, stockholder, action. This Agreement
has been duly executed and delivered by the Borrower, and  constitutes, and each other Transaction
Document to which any Loan Party is a party, when executed and delivered by
such Loan Party, will constitute, valid and binding obligations of the Borrower
or such Loan 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.

 

Governmental Approvals; No
Conflicts.  The execution, delivery and performance by
the Borrower and the Co-Borrower of this Agreement, and by each Loan 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
Borrower or any of its Subsidiaries or any judgment or order of any
Governmental Authority binding on the Borrower 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 Borrower 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 Borrower or

 

 

any
of its Subsidiaries and (d) will not result in the creation or imposition of
any Lien on any asset of the Borrower or any of its Subsidiaries, except Liens
(if any) created under the Loan Documents.

 

Financial Statements.  The Borrower has furnished to each Lender (i)
the audited consolidated balance sheet of the Borrower and its Subsidiaries as
of December 31, 2003, 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
Borrower and its Subsidiaries as of March 31, 2004, 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 Borrower 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, 2003, there have been no changes
with respect to the Borrower and its Subsidiaries which have had or could  reasonably be expected to have, singly or in
the aggregate, a Material Adverse Effect.

 

Litigation and Environmental Matters.

 

No litigation,
investigation or proceeding of or before any arbitrators or Governmental
Authorities is pending against or, to the knowledge of the Borrower, threatened
against or affecting the Borrower 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 4.5(a),
as of the Closing Date, no litigation, investigation or proceeding of or before
any arbitrators or Governmental Authorities is pending against or, to the
knowledge of the Borrower, threatened against or affecting the Borrower or any
of its Subsidiaries that seeks damages in excess of $500,000.

 

Except for the matters
set forth on Schedule 4.5(b), neither the Borrower 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 $500,000, (iii) has received notice of
any claim with respect to any Environmental Liability in excess of $500,000 or
(iv) knows of any basis for any Environmental Liability in excess of $500,000.

 

Compliance with Laws and
Agreements.  The Borrower 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.

 

Investment Company Act,
Etc.  Neither the Borrower 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, (b) a
“holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935, as amended or (c) otherwise subject to any
other regulatory scheme limiting its ability to incur debt.

 

Taxes.  The Borrower and its Subsidiaries and each
other Person for whose taxes the Borrower 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 Borrower 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 Borrower 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.

 

Margin Regulations.  None of the proceeds of any of the Loans or
Letters of Credit will be used for “purchasing” or “carrying” any “margin
stock” with the respective meanings of each of such terms under Regulation U as
now and from time to time hereafter in effect or for any purpose that violates
the provisions of the applicable Margin Regulations.

 

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 $1,000,000 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 $1,000,000 the fair market value of the assets of all such underfunded
Plans.

 

Ownership of Property.

 

Each of the Borrower 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.

 

Each of the Borrower 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 Borrower 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.

 

Disclosure.  Each of the Borrower and Co-Borrower has
disclosed to the Lenders all agreements, instruments, and corporate or other
restrictions to which the Borrower 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 Borrower is required to file with the
Securities and Exchange Commission), financial statements, certificates or
other written information furnished by or on behalf of the Borrower to the
Administrative Agent or any Lender in connection with the negotiation or
syndication of this Agreement or any other Loan 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 Borrower
represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.

 

Labor Relations.  There are no strikes, lockouts or other
material labor disputes or grievances against the Borrower or any of its Subsidiaries,
or, to the Borrower’s knowledge, threatened against or affecting the Borrower
or any of its Subsidiaries, and no significant unfair labor practice, charges
or grievances are pending against the Borrower or any of its Subsidiaries, or
to the Borrower’s knowledge, threatened against any of them before any
Governmental Authority.  All payments due
from the Borrower 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 Borrower or any such Subsidiary, except where the failure to do so
could not reasonably be expected to have a Material Adverse Effect.

 

Subsidiaries.  Schedule 4.14
sets forth the name of, the ownership interest of the Borrower in, the jurisdiction
of incorporation of, and the type of, each Subsidiary and identifies each
Subsidiary that is a Subsidiary Loan Party, in each case as of the Closing
Date.

 

AFFIRMATIVE COVENANTS

 

The Borrower covenants and agrees that so
long as any Lender has a Commitment hereunder or the principal of and interest
on any Loan or any fee or any LC Disbursement remains unpaid or any Letter of
Credit remains outstanding:

 

Financial
Statements and Other Information.  The Borrower
will deliver to the Administrative Agent and each Lender:

 

as soon as available and
in any event within 90 days after the end of each fiscal year of Borrower, a
copy of the annual audited report for such fiscal year for the Borrower and its
Subsidiaries, containing a consolidated and 
unaudited consolidating balance sheet of the Borrower 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 Borrower 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 Borrower 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;

 

as soon as available and
in any event within 45 days after the end of each  fiscal quarter of each fiscal year of the
Borrower (other than the last fiscal quarter), an unaudited consolidated and
consolidating balance sheet of the Borrower 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 Borrower 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 Borrower’s previous fiscal year, all
certified by the chief financial officer, treasurer or
controller  of the Borrower as presenting fairly
in all material respects the financial condition and results of operations of
the Borrower and its Subsidiaries on a consolidated basis in accordance with
GAAP, subject to normal year-end audit adjustments and the absence of
footnotes;

 

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 Default or Event of Default on the date of such certificate, and if a
Default or an Event of Default then exists, specifying the details thereof and
the action which the Borrower has taken or proposes to take with respect
thereto, (ii) setting forth in reasonable detail calculations
demonstrating compliance with Article VI and (iii) stating whether any
change in GAAP or the application thereof has occurred since the date of the
Borrower’s audited financial statements referred to in Section 4.4
and, if any change has occurred, specifying the effect  of such change on the financial statements
accompanying such certificate;

 

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 Default or Event of Default
(which certificate may be limited to the extent required by accounting rules or
guidelines);

 

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 Borrower to its shareholders generally, as the case may be; and

 

promptly following any
request therefor, such other information regarding the results of operations,
business affairs and  financial condition
of the Borrower or any Subsidiary as the Administrative Agent or any Lender 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 Borrower, a forecasted income statement, balance sheet, and
statement of cash flows for the following fiscal year.

 

Notices of Material Events.  The Borrower will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

 

the occurrence of any
Default or Event of Default;

 

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 Borrower, affecting
the Borrower or any Subsidiary which, if adversely determined, could reasonably
be expected to result in a Material Adverse Effect;

 

the occurrence of any
event or any other development by which the Borrower 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 $500,000, (iii)
receives notice of any claim with respect to any Environmental Liability in
excess of $500,000, or (iv) becomes aware of any basis for any Environmental
Liability in excess of $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;

 

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 Borrower
and its Subsidiaries in an aggregate amount exceeding $1,000,000; and

 

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

 

Each notice delivered
under this Section 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.

 

Existence; Conduct of
Business.  The Borrower 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, 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 shall prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 7.3.

 

Compliance with Laws, Etc. The Borrower will, and will
cause each of its Subsidiaries to, comply with all laws, rules, regulations and
requirements of any Governmental Authority applicable to its properties, 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.

 

Payment of Obligations.  The Borrower 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 Borrower 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.

 

Books and Records. The Borrower 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 Borrower in conformity with GAAP.

 

Visitation, Inspection,
Etc.  The Borrower will, and will cause each of its
Subsidiaries to, permit any representative of the Administrative Agent or any
Lender, 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
Administrative Agent or any Lender may reasonably request after reasonable
prior notice to the Borrower; provided, however,
if a Default or an Event of Default has occurred and is continuing, no prior
notice shall be required. All reasonable expenses incurred by the
Administrative Agent and, at any time after the occurrence and during the
continuance of a Default or an Event of Default, any Lenders in connection with
any such visit, inspection, audit, examination and discussions shall be borne
by the Borrower.

 

Maintenance of Properties;  Insurance.  The Borrower 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
excepted, 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 Borrower shall
maintain and keep in force insurance coverage on its inventory, as is
consistent with best industry practices. 
The Borrower shall at all times cause the Administrative Agent to be
named as additional insured on all of its casualty and liability policies.

 

Use of Proceeds and Letters
of Credit.  The Borrower will use the proceeds of all
Loans to finance working capital needs, to refinance existing debt, to finance
Permitted Acquisitions and for other general corporate purposes of the Borrower
and its Subsidiaries. No part of the proceeds of any Loan will be used, whether
directly or indirectly, for any purpose that would violate any rule or
regulation of the Board of Governors of the Federal Reserve System, including
Regulations T, U or X.  All Letters of
Credit will be used for general corporate purposes.

 

Additional Subsidiaries.

 

The Borrower may, after
the Closing Date, acquire or form additional Domestic Subsidiaries so long as
the Borrower, within ten (10) business days after any such Domestic Subsidiary
is acquired or formed, (i) notifies the Administrative Agent and the Lenders
thereof and (ii) causes such Domestic Subsidiary to become a Subsidiary Loan
Party by executing agreements in the form of Annex I to the Subsidiary Guaranty
Agreement and Annex I to Indemnity and Contribution Agreement and (iii) causes
such Domestic Subsidiary to deliver simultaneously therewith similar documents
applicable to such Domestic Subsidiary described in Section 3.1 as
reasonably requested by the Administrative Agent.

 

The Borrower shall not
acquire or form any additional Foreign Subsidiaries; provided, however,
that the Borrower may acquire or form additional Subsidiaries incorporated
under the laws of Canada so long as the Borrower, within ten (10) business days
after any such Foreign Subsidiary is acquired or formed, (i) notifies the
Administrative Agent and the Lenders thereof, (ii) delivers stock certificates
and related pledge agreements, in form satisfactory to a collateral agent
acceptable to the Required Lenders, 
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 Borrower or any Domestic Subsidiary to secure the Obligations, (iii)
causes such  Subsidiary to deliver
simultaneously therewith similar documents applicable to such Foreign
Subsidiary described in Section 3.1 as reasonably requested by the
Administrative Agent, and (iv) the Administrative Agent enters into an
intercreditor agreement, in form and substance satisfactory to the Required
Lenders, with all other creditors of the Borrower having a similar covenant
with the Borrower.

 

 Post-Closing
Requirements    The Borrower will, and will cause each of
its Subsidiaries to:

 

No later than forty-five
(45) days after the Closing Date, deliver to the Administrative Agent certified
copies of the articles of incorporation or other charter documents of the
Co-Borrower together with certificates of good standing or existence from the
Department of State of the Commonwealth of Puerto Rico of the Co-Borrower.

 

 

No later than forty-five
days (45) days after the Closing Date, deliver to the Administrative Agent, a
favorable written opinion of Puerto Rico counsel to the Co-Borrower, addressed
to Administrative Agent and each of the Lenders, and covering such matters of
Puerto Rico law relating to the Co-Borrower, the Loan Documents and the transactions
contemplated therein with respect to the Co-Borrower as the Administrative
Agent of the Required Lenders shall reasonably request.

 

FINANCIAL COVENANTS

 

The Borrower covenants and agrees that so
long as any Lender has a Commitment hereunder or the principal of or interest
on or any Loan remains unpaid or any fee or any LC Disbursement remains unpaid
or any Letter of Credit remains outstanding:

 

Total Debt to EBITDA Ratio.  The Borrower and its Subsidiaries shall
maintain, as of the last day of each fiscal quarter of the Borrower, commencing
with the fiscal quarter ending June 30, 2004, a Total Debt to EBITDA Ratio
of not greater than 3.00:1.00.

 

Total Adjusted Debt to
Total Adjusted Capital Ratio.  The Borrower
and its Subsidiaries shall maintain, as of the last day of each fiscal quarter
of the Borrower, commencing with the fiscal quarter ending June 30, 2004,
a Total Adjusted Debt to Total Adjusted Capital Ratio of not greater than
0.60:1.00.

 

Fixed Charge Coverage Ratio.  The Borrower and its Subsidiaries shall
maintain, as of the last day of each fiscal quarter of the Borrower, commencing
with the fiscal quarter ending June 30, 2004, a Fixed Charge Coverage  Ratio of not less than 2:00 to 1:00.

 

Minimum Consolidated Net
Worth.  The Borrower and its Subsidiaries shall
maintain a Consolidated Net Worth of an amount equal to the sum of (i)
$338,340,000, 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 Borrower, commencing
with the fiscal quarter ending June 30, 2004, plus
(iii) 100% of the net proceeds from any public or private offering of common
stock of the Borrower after the Closing Date, 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 Borrower, the Borrower shall notify the
Administrative Agent in writing of the amount of the proceeds thereof.

 

NEGATIVE
COVENANTS

 

The Borrower covenants and agrees that so
long as any Lender has a Commitment hereunder or the principal of or interest
on any Loan remains unpaid or any fee or any LC Disbursement remains unpaid or
any Letter of Credit remains outstanding:

 

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

 

Indebtedness created
pursuant to the Loan Documents;

 

Indebtedness existing on
the date hereof and set forth on Schedule 7.1 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;

 

Indebtedness of the
Borrower or any Subsidiary incurred after the Closing 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
$15,000,000 at any time outstanding;

 

Indebtedness of the
Borrower owing to any Loan Party and of any Loan Party owing to the Borrower or
any other Loan Party;

 

Guarantees by the
Borrower of Indebtedness of any Loan Party and by any Loan Party of
Indebtedness of the Borrower or any other Loan Party;

 

Indebtedness or
contingent liability under the Synthetic Lease Documents provided that
the aggregate outstanding principal amount of all such Indebtedness does not
exceed $25,000,000 at any one time;

 

Guarantees by the
Borrower of Indebtedness of certain franchise operators of the Borrower,
provided such guarantees are given by the Borrower in connection with (1)  loans made pursuant to the terms of the Loan
Facility Agreement, (2) loans made pursuant to the SouthTrust Loan Facility
Agreement in an aggregate principal amount not to exceed $250,000, and (3)
loans made by SunTrust Bank to finance the purchase of equity interests in
certain franchises of the Borrower in an aggregate principal amount not to
exceed $10,000,000;

 

endorsed negotiable
instruments for collection in the ordinary course of business;

 

Guarantees by
Borrower 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 $10,000,000 at any time;

 

Loans by Borrower to its
Foreign Subsidiaries, provided that the amount of such loans, together with the
amount of Guaranteed Indebtedness permitted to be incurred under clause (i)
above, does not exceed $10,000,000 at any time; and

 

Indebtedness in the
aggregate principal amount of $50,000,000 as evidenced by the 6.88% Senior
Notes of Borrower issued pursuant to the Note Purchase Agreement, together with
Guarantees of such Indebtedness by any Subsidiaries of Borrower; and

 

other unsecured
Indebtedness in an aggregate principal amount not to exceed $30,000,000 at any
time outstanding.

 

 

Negative Pledge.  The Borrower 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 Borrower that are repurchased by the
Borrower and retired or held by the Borrower), except:

 

Permitted Encumbrances;

 

any Liens on any property
or asset of the Borrower or any Subsidiary existing on the Closing Date set forth
on Schedule 7.2; provided, that such Lien shall not apply to
any other property or asset of the Borrower or any Subsidiary;

 

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 7.1(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;

 

any Lien (i) existing on
any asset of any Person at the time such Person becomes a Subsidiary of the
Borrower, (ii) existing on any asset of any Person at the time such Person is
merged with or into the Borrower or any Subsidiary of the Borrower or (iii)
existing on any asset prior to the acquisition thereof by the Borrower or any
Subsidiary of the Borrower; 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; and

 

extensions, renewals, or
replacements of any Lien referred to in paragraphs (a) through (d) of this
Section; 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;

 

Liens granted under the
Synthetic Lease Documents in the real or personal property financed thereunder
and in certain related rights of the Borrower to secure the Borrower’s
indebtedness and liabilities under the Synthetic Lease Documents to the extent
permitted under Section 7.1;

 

Liens securing the
Obligations; and

 

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

 

Fundamental Changes.

 

The Borrower 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 Default or
Event of Default shall have occurred and be continuing

 

 

(i) the Borrower or any
Subsidiary may merge with a Person if the Borrower (or such Subsidiary if the
Borrower is not a party to such merger) is the surviving Person, (ii) any
Subsidiary may merge into another Subsidiary or the Borrower; provided,  however,
that if the Borrower is a party to such merger, the Borrower shall be the
surviving Person, provided, further, that if any Subsidiary to
such merger is a Subsidiary Loan Party, the Subsidiary Loan Party 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 Borrower or to a
Subsidiary Loan Party, (iv) the Co-Borrower may liquidate or dissolve into the
Borrower if the Borrower determines in good faith that such liquidation or
dissolution is in the best interests of the Borrower and is not materially
disadvantageous to the Lenders, (v) any other Subsidiary may liquidate or
dissolve if the Borrower determines in good faith that such liquidation or
dissolution is in the best interests of the Borrower, is not materially
disadvantageous to the Lenders, and such Subsidiary dissolves into another
Subsidiary Loan Party or the Borrower; 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 7.4.

 

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

 

Investments, Loans, Etc.  The Borrower 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:

 

Investments (other than
Permitted Investments) existing on the date hereof and set forth on Schedule 7.4
(including Investments in Subsidiaries);

 

Permitted Investments;

 

Permitted
Acquisitions;

 

Investments made by the
Borrower in or to any other Loan Party and by any other Loan Party to the
Borrower or in or to another Loan Party;

 

loans or advances to
employees, officers, stockholders or directors of the Borrower or any
Subsidiary in the ordinary course of business; provided,
however, that the aggregate amount of all such loans and advances
does not exceed $350,000 at any time;

 

loans to franchise
operators and owners of franchises acquired or funded pursuant to the Loan
Facility Agreement;

 

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

 

loans to Foreign
Subsidiaries to the extent permitted under Section 7.1;

 

loans to franchise
operators to extent permitted under Section 7.1; and

 

 

other Investments not to
exceed $10,000,000 at any time;

 

 

Restricted Payments.  The Borrower  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 Obligations of the Borrower 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
Borrower solely in shares of any class of its common stock,
(ii) Restricted Payments made by any Subsidiary to the Borrower or to
another Subsidiary Loan Party and (iii) so long as no Default or Event of
Default has occurred and is continuing at the time such dividend is paid or
redemption or stock repurchase is made, dividends, distributions, redemptions
and stock repurchases paid in cash which do not exceed fifty percent (50%) of
Consolidated Net Income of Borrower (if greater that $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.

 

Sale of Assets.  The Borrower 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 Borrower or a
Subsidiary Loan Party (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 7.3(a) and sale leaseback transactions
permitted under Section 7.9, and (d) other sales of assets made on
or after the Closing Date not to exceed $10,000,000 in book value in the
aggregate.

 

Transactions with
Affiliates.  The Borrower 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 Borrower or such Subsidiary than could be obtained on
an arm’s-length basis from unrelated third parties, (b) transactions between or
among the Borrower and its wholly-owned Subsidiaries not involving any other
Affiliates,  (c) any Restricted Payment
permitted by Section 7.5 and (d) transactions permitted under Section 7.4(e).

 

Restrictive Agreements.  The Borrower 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 Borrower 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 Borrower or any other Subsidiary, to Guarantee Indebtedness of
the Borrower or any other Subsidiary or to transfer any of its property or
assets to the Borrower or any Subsidiary of the Borrower; provided, that
(i) the foregoing shall not apply to restrictions or conditions imposed by law
or by this Agreement, any other Transaction Document, the SouthTrust Loan
Facility Agreement, or the Note Purchase 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.

 

Sale and Leaseback
Transactions.  The Borrower will not, and will not permit
any of the 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 Borrower 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 $30,000,000 during the term of
this Agreement.

 

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

 

Accounting Changes.  The Borrower 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 Borrower or of any Subsidiary, except to change the fiscal year of a
Subsidiary to conform its fiscal year to that of the Borrower.

 

 

EVENTS OF DEFAULT

 

Events
of Default.  If any
of the following events (each an “Event of Default”) shall occur:

 

the Borrower or the Co-Borrower shall fail to pay any
principal of any Loan or of any reimbursement obligation in respect of any LC
Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment or otherwise; or

 

the Borrower or the Co-Borrower shall fail to pay any
interest on any Loan or any fee or any other amount (other than an amount
payable under clause (a) of this Article) payable under this Agreement or any
other Loan Document, when and as the same shall become due and payable, and
such failure shall continue unremedied for a period of three (3) Business Days;
or

 

any representation or warranty made or deemed made by
or on behalf of the Borrower or any Subsidiary in or in connection with this
Agreement or any other Loan 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
Administrative Agent or the Lenders by any Loan Party or any representative of
any Loan Party pursuant to or in connection with this Agreement or any other Loan
Document shall prove to be incorrect  in any
material respect when made or deemed made or submitted; or

 

the Borrower shall fail to observe or perform any
covenant or agreement contained in Sections 5.1, 5.2, or 5.3
(solely with respect to the Borrower’s existence) or Articles VI or VII; or

 

any Loan Party shall fail to observe or perform any
covenant or agreement contained in this Agreement (other than those referred to
in clauses (a), (b) and (d) above), and such failure shall remain unremedied
for 30 days after the earlier of (i) any officer of the Borrower
becomes aware of such failure, or (ii)  notice thereof shall have been
given to the Borrower by the Administrative Agent or any Lender; or

 

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

 

the Borrower 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

 

the Borrower 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, (iii) apply for
or consent to the appointment of a custodian, trustee, receiver, liquidator or
other similar official for the Borrower or any such 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

 

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

 

the Borrower 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

 

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 Borrower and the Subsidiaries in an
aggregate amount exceeding $1,000,000 or otherwise having a Material Adverse
Effect; or

 

any  judgment or
order for the payment of money in excess of $1,000,000 in the aggregate 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

 

any  non-monetary  judgment or order shall be rendered against the Borrower 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

 

a Change in Control shall occur or exist; or

 

any provision of any Subsidiary Guarantee Agreement
shall for any reason cease to be valid and binding on, or enforceable against,
any Subsidiary Loan Party, or any Subsidiary Loan Party shall so state in
writing, or any Subsidiary Loan Party shall seek to terminate its Subsidiary
Guarantee Agreement;

 

any “Event of Default”
occurs under any other Loan Document;

 

then, and in every such event
(other than an event with respect to the Borrower described in clause (h) or
(i) of this Section) and at any time thereafter during the continuance of such
event, the Administrative Agent may, and upon the written request of the
Required Lenders shall,  by notice to the
Borrower, take any or all of the following actions, at the same or different
times:  (i) terminate the Commitments, whereupon
the Commitment of each Lender shall terminate immediately; (ii) declare
the principal of and any accrued interest on the Loans, and all other
Obligations owing hereunder, to be, whereupon the same shall become due and
payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower and (iii) exercise all
remedies contained in any other Loan Document; and  that, if an Event of Default specified in
either clause (h) or (i)  shall occur,
the Commitments  shall automatically
terminate and the principal of the Loans then outstanding, together with
accrued interest thereon, and  all fees,
and all other Obligations shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.

 

THE ADMINISTRATIVE AGENT

 

Appointment of Administrative Agent.  a)  Each Lender irrevocably appoints SunTrust
Bank as the Administrative Agent and authorizes it to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
under this Agreement and the other Loan Documents, together with all such
actions and powers that are reasonably incidental thereto. The Administrative
Agent may perform any of its duties hereunder by or through any one or more
sub-agents appointed by the Administrative Agent. The Administrative Agent and
any such sub-agent may perform any and all of its duties and exercise its
rights and powers through their respective Related Parties.  The exculpatory provisions set forth in this
Article shall apply to any such sub-agent and the Related Parties of the
Administrative Agent and any such sub-agent and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.

 

The Issuing Bank shall act on behalf of the Lenders
with respect to any Letters of Credit issued by it and the documents associated
therewith until such time and except for so long as the Administrative Agent
may agree at the request of the Required Lenders to act for the Issuing Bank
with respect thereto; provided, that the Issuing Bank shall have all the
benefits and immunities (i) provided to the Administrative Agent in this
Article IX with respect to any acts taken or omissions suffered by the Issuing
Bank in connection with Letters of Credit 
issued by it

 

 

or proposed to be issued by it and the application and
agreements for letters of credit pertaining to the Letters of Credit as fully
as the term “Administrative Agent” as used in this Article IX  included the Issuing Bank with respect to
such acts or omissions and (ii) as additionally provided in this Agreement with
respect to the Issuing Bank.

 

Nature of Duties of Administrative Agent.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth in this Agreement and
the other Loan Documents. Without limiting the generality of the foregoing, (a)
the Administrative Agent shall not be subject to any fiduciary or other implied
duties, regardless of whether a Default or an Event of Default has occurred and
is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except those
discretionary rights and powers expressly contemplated by the Loan Documents
that the Administrative Agent is required to exercise in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 10.2), and (c)
except as expressly set forth in the Loan Documents, the Administrative Agent
shall not have any duty to disclose, and shall not be liable for the failure to
disclose, any information relating to the Borrower or any of its Subsidiaries
that is communicated to or obtained by the Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for
any action taken or not taken by it with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 10.2) or in the
absence of its own gross negligence or willful misconduct.  The Administrative Agent shall not be deemed
to have knowledge of any Default or Event of Default unless and until written
notice thereof is given to the Administrative Agent by the Borrower or any
Lender, and the Administrative Agent shall not be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with any Loan Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements, or other terms and conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of
any Loan Document or any other agreement, instrument or document, or (v) the
satisfaction  of any condition set forth
in Article III or elsewhere in any Loan Document, other than to confirm receipt
of items expressly required to be delivered to the Administrative Agent.

 

Lack of Reliance on the Administrative Agent.  Each of the Lenders, the Swingline Lender and
the Issuing Bank acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each of the Lenders, the Swingline Lender and the Issuing Bank also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, continue to make its own decisions in
taking or not taking of any action under or based on this Agreement, any
related agreement or any document furnished hereunder or thereunder.

 

Certain Rights of the Administrative Agent.  If the Administrative Agent shall request
instructions from the Required Lenders with respect to any action or actions
(including the failure to act) in connection with this Agreement, the
Administrative Agent shall be entitled to refrain from such act or taking such
act, unless and until it shall have received instructions from such Lenders;
and the Administrative Agent shall not incur liability to any Person by reason
of so refraining.  Without limiting the
foregoing, no Lender shall have any right of action whatsoever against the
Administrative Agent as a result of the Administrative Agent acting or
refraining from acting hereunder in accordance with the instructions of the
Required Lenders where required by the terms of this Agreement.

 

Reliance by Administrative Agent.  The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed, sent or made by the proper Person.  The Administrative Agent may also rely upon
any statement made to it orally or by telephone and believed by it to be made
by the proper Person and shall not incur any liability for relying thereon. The
Administrative Agent may consult with legal counsel (including counsel for the
Borrower), independent public accountants and other experts selected by it and
shall not be liable for any action taken or not taken by it in accordance with
the advice of such counsel, accountants or experts.

 

The Administrative Agent in its Individual Capacity.  The bank serving as the Administrative Agent
shall have the same rights and powers under this Agreement and any other Loan
Document in its capacity as a Lender as any other Lender and may exercise or
refrain from exercising the same as though it were not the Administrative
Agent; and the terms “Lenders”, “Required Lenders”, “holders of Notes”, or any
similar terms shall, unless the context clearly otherwise indicates, include
the Administrative Agent in its individual capacity.  The bank acting as the Administrative Agent
and its Affiliates may accept deposits from, lend money to, and generally
engage in any kind of business with the Borrower or any Subsidiary or Affiliate
of the Borrower as if it were not the Administrative Agent hereunder.

 

Successor Administrative Agent.

 

The Administrative Agent may resign at any time by
giving notice thereof to the Lenders and the Borrower. Upon any such
resignation, the Required Lenders shall have the right to appoint a successor
Administrative Agent, subject to the approval by the Borrower if no Default or
Event

 

 

of Default shall exist at such time.  If no successor Administrative Agent shall
have been so appointed, and shall have accepted such appointment within
30 days after the retiring Administrative Agent gives notice of
resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Bank, appoint a successor Administrative Agent, which
shall be a commercial bank organized under the laws of the United States of
America or any state thereof or a bank which maintains an office in the United
States, having a combined capital and surplus of at least $500,000,000.

 

Upon the acceptance of its appointment as the
Administrative Agent hereunder by a successor, such successor Administrative
Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations under
this Agreement and the other Loan Documents. 
If within 45 days after written notice is given of the retiring
Administrative Agent’s resignation under this Section 9.7 no successor
Administrative Agent shall have been appointed and shall have accepted such
appointment, then on such 45th day (i) the retiring Administrative
Agent’s resignation shall become effective, (ii) the retiring Administrative
Agent shall thereupon be discharged from its duties and obligations under the
Loan Documents and (iii) the Required Lenders shall thereafter perform all
duties of the retiring Administrative Agent under the Loan Documents until such
time as the Required Lenders  appoint a
successor Administrative Agent as provided above. After any retiring
Administrative Agent’s resignation hereunder, the provisions of this
Article IX shall continue in effect for the benefit of such retiring
Administrative Agent and its representatives and agents in respect of any
actions taken or not taken by any of them while it was serving as the
Administrative Agent.

 

Authorization to Execute other Loan Documents.  Each Lender hereby authorizes the
Administrative Agent to execute on behalf of all Lenders all Loan Documents
other than this Agreement.

 

Syndication Agent.  Each Lender hereby designates First Union
National Bank as Syndication Agent and agrees that the Syndication Agent shall
have no duties or obligations under any Loan Documents to any Lender or any
Loan Party.

 

MISCELLANEOUS

 

Notices.

 

Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other
communications to any party herein to be effective shall be in writing and
shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

 

	
  To the Borrower:

  	
   

  	
  Aaron Rents,
  Inc.

  	
   

  
	
   

  	
   

  	
  1100 Aaron
  Building

  	
   

  
	
   

  	
   

  	
  309 East
  Paces Ferry Road, NE

  	
   

  
	
   

  	
   

  	
  Atlanta,
  GA  30305-2377

  	
   

  
	
   

  	
   

  	
  Attn:  Gil Danielson

  	
   

  
	
   

  	
   

  	
  Telecopy
  Number:  404-240-6520

  	
   

  

 

 

	
  To the Co-Borrower:

  	
   

  	
  Aaron Rents,
  Inc. of Puerto Rico

  	
   

  
	
   

  	
   

  	
  c/o Aaron
  Rents, Inc.

  	
   

  
	
   

  	
   

  	
  1100 Aaron
  Building

  	
   

  
	
   

  	
   

  	
  309 East
  Paces Ferry Road, NE

  	
   

  
	
   

  	
   

  	
  Atlanta,
  GA  30305-2377

  	
   

  
	
   

  	
   

  	
  Attn:  Gil Danielson

  	
   

  
	
   

  	
   

  	
  Telecopy
  Number:  404-240-6520

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  To the Administrative Agent:

  	
   

  	
  SunTrust
  Bank

  	
   

  
	
   

  	
   

  	
  303
  Peachtree Street NE /2nd Floor/MC 1921

  	
   

  
	
   

  	
   

  	
  Atlanta,
  Georgia 30308

  	
   

  
	
   

  	
   

  	
  Attention:
  Don Thompson

  	
   

  
	
   

  	
   

  	
  Telecopy
  Number: (404) 588-8833

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  To the Issuing Bank:

  	
   

  	
  SunTrust
  Bank

  	
   

  
	
   

  	
   

  	
  25 Park
  Place, N. E./Mail Code 3706

  	
   

  
	
   

  	
   

  	
  Atlanta,
  Georgia 30303

  	
   

  
	
   

  	
   

  	
  Attention:
  Letter of Credit Department

  	
   

  
	
   

  	
   

  	
  Telecopy
  Number: (404) 588-8129

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  To the Swingline Lender:

  	
   

  	
  SunTrust
  Bank

  	
   

  
	
   

  	
   

  	
  303
  Peachtree Street NE /2nd Floor/MC 1921

  	
   

  
	
   

  	
   

  	
  Atlanta,
  Georgia 30308

  	
   

  
	
   

  	
   

  	
  Attention:
  Don Thompson

  	
   

  
	
   

  	
   

  	
  Telecopy
  Number: (404) 588-7407

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  To any other Lender:

  	
   

  	
  the address
  set forth on the signature pages hereto

  or in the Assignment and Acceptance that such

  Lender executes

  

 

Any party hereto may change its address or telecopy number for notices
and other communications hereunder by notice to the other parties hereto.  All such notices and other communications
shall, when transmitted by overnight delivery, or faxed, be effective when
delivered for overnight (next-day) delivery, or transmitted in legible form by
facsimile machine, respectively, or if mailed, upon the third Business Day
after the date deposited into the mails or if delivered, upon delivery;
provided, that notices delivered  to the
Administrative Agent, the Issuing Bank or the Swingline Lender shall not be
effective until actually received by such Person at its address specified in
this Section 10.1.

 

Any agreement of the Administrative Agent and the
Lenders herein to receive certain notices by telephone or facsimile is solely
for the convenience and at the request of the Borrower.  The Administrative Agent and the Lenders
shall be entitled to rely on the authority of any Person purporting to be a
Person authorized by the Borrower to give such notice and the Administrative
Agent and Lenders shall not have any liability to the Borrower or other Person
on account of any action taken or not taken by the Administrative Agent or the
Lenders in reliance upon such

 

 

telephonic or facsimile notice.  The obligation of the Borrower and the
Co-Borrower to repay the Loans and all other Obligations hereunder shall not be
affected in any way or to any extent by any failure of the Administrative
Agent  and the Lenders to receive written
confirmation of any telephonic or facsimile notice or the receipt by the
Administrative Agent and the Lenders of a confirmation which is at variance
with the terms understood by the Administrative Agent and the Lenders to be
contained in any such telephonic or facsimile notice.

 

Waiver; Amendments.

 

No failure or delay by the Administrative Agent, the
Issuing Bank or any Lender in exercising any right or power hereunder or any
other Loan Document, and no course of dealing between the Borrower, the
Co-Borrower and the Administrative Agent or any Lender, shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power or any abandonment or 
discontinuance of steps to enforce such right or power, preclude any
other or further exercise thereof or the exercise of any other right or power
hereunder or thereunder.  The rights and
remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder
and under the other Loan Documents are cumulative and are not exclusive of any
rights or remedies provided by law. No waiver of any provision of this
Agreement or any other Loan Document or consent to any departure by the
Borrower therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan
or the issuance of a Letter of Credit shall not be construed as a waiver of any
Default or Event of Default, regardless of whether the Administrative Agent,
any Lender or the Issuing Bank may have had notice or knowledge of such Default
or Event of Default at the time.

 

No amendment or waiver of any provision of this
Agreement or the other Loan Documents, nor consent to any departure by the
Borrower or the Co-Borrower therefrom, shall in any event be effective unless
the same shall be in writing and signed by the Borrower and the Required
Lenders or the Borrower and the Administrative Agent with the consent of the
Required Lenders 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 or waiver shall:  (i)
increase the Commitment of any Lender without the written consent of such
Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or
reduce the rate of interest thereon, or reduce any fees payable hereunder,
without the written consent of each Lender affected thereby,
(iii) postpone the date fixed for any payment of any principal of, or
interest on, any Loan or LC Disbursement or interest thereon or any fees hereunder
or reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date for the termination or reduction of any Commitment, without the
written consent of each Lender affected thereby,  (iv) change Section 2.20 (b) or
(c) in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender, (v) change any of the
provisions of this Section or the definition of “Required Lenders” or any other
provision  hereof specifying the number
or percentage of Lenders which are required to waive, amend or modify any
rights hereunder or make any determination 
or grant any consent hereunder, without the consent of each Lender; (vi)
release any guarantor or limit the liability of any such guarantor under any
guaranty agreement, without the written consent of each Lender; or (vii)
release all or substantially all collateral (if any) securing any of the
Obligations or agree to subordinate any Lien in such collateral to any other
creditor of the Borrower or any Subsidiary, without the written consent of

 

 

each Lender; provided further, that no such
agreement shall amend, modify or otherwise affect the rights, duties or
obligations of the Administrative Agent, the Swingline Lender or the Issuing
Bank without the prior written consent of such Person.

 

Expenses; Indemnification.

 

The Borrower shall pay (i) all reasonable,
out-of-pocket costs and expenses of the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements
of counsel for the Administrative Agent and its Affiliates, in connection with
the syndication of the credit facilities provided for herein, the preparation
and administration of the Loan Documents and any amendments, modifications or
waivers thereof (whether or not the transactions contemplated in this Agreement
or any other Loan Document shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder and (iii) all out-of-pocket costs and expenses
(including, without limitation, the reasonable fees, charges and disbursements
of outside counsel and the allocated cost of inside counsel) incurred by the Administrative
Agent, the Issuing Bank or any Lender in connection with the enforcement or
protection of its rights in connection with this Agreement, including its
rights under this Section, or in connection with the Loans made or any Letters
of Credit issued hereunder, including all such out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans or
Letters of Credit.  Notwithstanding
anything herein to the contrary Borrower and Co-Borrower’s obligation to reimburse
any Person hereunder for fees, charges and disbursements of counsel shall be
limited to reasonable fees, charges and disbursements of counsel actually
incurred.

 

The Borrower and the Co-Borrower shall indemnify the
Administrative Agent, the Issuing Bank and each Lender, and each Related Party
of any of the foregoing (each, an “Indemnitee”)
against, and hold each of them harmless from, any and all costs, losses,
liabilities, claims, damages and related expenses, including the fees, charges
and disbursements of any counsel for any Indemnitee, which may be incurred by
or asserted against any Indemnitee arising out of, in connection with or as a
result of (i) the execution or delivery of this Agreement or any other
agreement or instrument contemplated hereby, the performance by the parties
hereto of their respective obligations hereunder or the consummation of any of
the transactions contemplated hereby, (ii) any Loan or Letter of Credit or any
actual or proposed use of the proceeds therefrom (including any refusal by the
Issuing Bank to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with
the terms of such Letter of Credit), (iii) any actual or alleged presence or
release of Hazardous Materials on or from any property owned by the
Borrower  or any Subsidiary or any
Environmental Liability  related in any
way to the Borrower or any Subsidiary  or (iv)  any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory and regardless of whether any Indemnitee is a party
thereto; provided,  that the Borrower and the
Co-Borrower shall not be obligated to indemnify any Indemnitee for any of the
foregoing arising out of such Indemnitee’s gross negligence or willful
misconduct as determined by a court of competent jurisdiction in a final and
nonappealable judgment.

 

The Borrower and the Co-Borrower shall pay, and hold
the Administrative Agent and each of the Lenders harmless from and against, any
and all present and future stamp, documentary, and other

 

 

similar taxes with respect to this Agreement and any
other Loan Documents, any collateral described therein, or any payments due
thereunder, and save the Administrative Agent and each Lender harmless from and
against any and all liabilities with respect to or resulting from any delay or
omission to pay such taxes.

 

To the extent that the Borrower or the Co-Borrower
fail to pay any amount required to be paid to the Administrative Agent, the
Issuing Bank or the Swingline Lender under clauses (a), (b) or (c) hereof, each
Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or
the Swingline Lender, as the case may be, such Lender’s Pro Rata Share
(determined as of the time that the unreimbursed expense or indemnity payment
is sought) of such unpaid amount; provided, that the unreimbursed
expense or indemnified payment, claim, damage, liability or related expense, as
the case may be, was incurred by or asserted against the Administrative Agent,
the Issuing Bank or the Swingline Lender in its capacity as such.

 

To the extent permitted by applicable law, neither the
Borrower or the Co-Borrower shall assert, and each the Borrower and the
Co-Borrower hereby waive, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to actual or direct damages) arising out of, in connection with or as a result
of, this Agreement or any agreement or instrument contemplated hereby, the
transactions contemplated therein, any Loan or any Letter of Credit  or the use of proceeds thereof.

 

All amounts due under this Section shall be payable
promptly after written demand therefor.

 

Successors and Assigns.

 

The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns, except that the Borrower and the Co-Borrower may not assign or
transfer any of its respective rights hereunder without the prior written
consent of each  Lender (and any
attempted assignment or transfer by the Borrower or the Co-Borrower without
such consent shall be null and void).

 

Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement
and the other Loan Documents (including all or a portion of its Commitment and
the Loans and LC Exposure at the time owing to it and including non-pro rata
assignments of its Commitments and related Loans); provided, that (i)
except in the case of an assignment to a Lender or an Affiliate of a Lender,
each of the Borrower and the Administrative Agent (and, in the case of an
assignment of all or a portion of a Commitment or any Lender’s obligations in
respect of its LC Exposure or Swingline Exposure, the Issuing Bank and the
Swingline Lender) must give their prior written consent (which consent shall
not be unreasonably withheld or delayed), 
(ii) except in the case of an assignment to a Lender or an Affiliate of
a Lender or an assignment of  the entire
amount of the assigning Lender’s Commitment hereunder  or
an assignment while an Event of Default has occurred and is continuing, the
amount of the Commitment of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than $1,000,000 (unless the Borrower and the Administrative Agent shall
otherwise consent), (iii) each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations with respect to any Commitment and the Loans related thereto under
this Agreement

 

 

and the other Loan Documents, (iv) the assigning
Lender and the assignee shall execute and deliver to the Administrative Agent
an Assignment and Acceptance, together with a processing and recordation  fee payable by the assigning Lender or the assignee (as
determined between such Persons) in an amount equal to $1,000  and (v) such assignee, if it is not a Lender, shall deliver
a duly completed Administrative Questionnaire to the Administrative Agent; provided,
that any consent of the Borrower otherwise required hereunder shall not be
required if an Event of Default has occurred and is continuing. Upon (i) the
execution and delivery of the Assignment and Acceptance, (ii) payment by such
assignee to the assigning Lender of an amount equal to the purchase price
agreed between such Persons and (iii) if such assignee is a Foreign Lender,
compliance by such Foreign Lender with Section 2.19(e), such assignee
shall become a party to this Agreement and any other Loan Documents to which
such assigning Lender is a party and, to the extent of such interest assigned
by such Assignment and Acceptance, shall have the rights and obligations of a
Lender under this Agreement, and the assigning Lender shall be released from
its obligations hereunder to a corresponding extent (and, in the case of an Assignment
and Acceptance covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.18, 2.19
and 2.20  and 10.3. Upon the consummation
of any such assignment hereunder, the assigning Lender, the Administrative
Agent and the Borrower shall make appropriate arrangements to have new Notes
issued if so requested by either or both the assigning Lender or the assignee.
Any assignment or other transfer by a Lender that does not fully comply with
the terms of this clause (b) shall be treated for purposes of this Agreement as
a sale of a participation pursuant to clause (c) below.

 

Any Lender may at any time, without the consent of the
Borrower, the Administrative Agent, the Issuing Bank or the Swingline Lender,
sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment, the Loans owing to it
and its LC Exposure); provided, that (i) such
Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of its obligations hereunder, and  (iii) the Borrower, the Co-Borrower, the
Administrative Agent, the Swingline Lender, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement and
the other Loan Documents. Any agreement between such Lender and the Participant
with respect to such participation shall provide that such Lender shall retain
the sole right and responsibility to enforce this Agreement and the other Loan
Documents and the right to approve any amendment, modification or waiver of
this Agreement and the other Loan Documents; provided, that such
participation agreement may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver of
this Agreement described in the first proviso of Section 10.2(b)
that affects the Participant.  The
Borrower and the Co-Borrower each agree that each Participant shall be entitled
to the benefits of  Sections 2.17,
2.18 and 2.19 to the same extent 
as if it were a Lender hereunder and had acquired its interest by
assignment pursuant to paragraph (b); provided, that no Participant
shall be entitled to receive any greater payment under Section 2.17 or 2.19
than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant unless the sale of such
participation is made with the Borrower’s prior written consent. To the extent
permitted by law, the Borrower and the Co-Borrower each agree that each
Participant shall be entitled to the benefits of Section 2.20 as though
it were a Lender, provided, that such

 

 

Participant agrees to share with the Lenders the
proceeds thereof in accordance with Section 2.20 as fully as if it were
a Lender hereunder.  A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section
2.19 unless the Borrower is notified of such participation sold to such
Participant and  such Participant agrees,
for the benefit of the Borrower, to comply with Section 2.19(e)
as though it were a Lender hereunder.

 

Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement and its Notes
(if any) to secure its obligations to a Federal Reserve Bank without complying
with this Section; provided,  that no such pledge or assignment
shall release a Lender from any of its obligations hereunder or substitute any
such pledgee or assignee for such Lender as a party hereto.

 

Notwithstanding anything to the contrary contained
herein, any Lender (a “Granting Lender”) may grant to a special purpose
funding vehicle (an “SPV”), identified as such in writing from time to
time by the Granting Lender to the Administrative Agent and the Borrower, the
option to provide to the Borrower all or any part of any Loan that such
Granting Lender would otherwise be obligated to make to the Borrower pursuant
to this Agreement; provided, that (i) nothing herein shall constitute a
commitment by any SPV to make any Loan and (ii) if an SPV elects not to
exercise such option or otherwise fails to provide all or any part of any Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof.  The making of a Loan by an SPV
hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if such Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPV
shall be liable for any indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Lender).  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior
indebtedness of any SPV, it will not institute against, or join any other
person in instituting against, such SPV any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State contrary in this Section 10.4, any SPV may (i) with
notice to, but without the prior written consent of, the Borrower and the
Administrative Agent and without paying any processing fee therefor, assign all
or a portion of its interests in any Loans to the Granting Lender or to any
financial institutions (consented to by the Borrower and the Administrative
Agent) providing liquidity and/or credit support to or for the account of such
SPV to support the funding or maintenance of Loans and (ii) disclose on a
confidential basis any non-public information relating to its Loans to any
rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPV. 
As this Section 10.4(g) applies to any particular SPV,
this Section may not be amended without the written consent of such SPV.

 

Governing Law; Jurisdiction; Consent to Service of Process.

 

This Agreement and the other Loan Documents 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.

 

The Borrower and the Co-Borrower each hereby
irrevocably and unconditionally submit, for itself and its property, to the
non-exclusive jurisdiction of the United States District Court of the Northern
District of Georgia and of any state court of the State of Georgia located in
Fulton

 

 

County  and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or any other Loan Document or the transactions
contemplated hereby or thereby, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such Georgia state court or , to the extent permitted by
applicable law, such Federal court. Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement or any other Loan Document shall
affect any right that the Administrative Agent, the Issuing Bank or any Lender
may otherwise have to bring any action or proceeding  relating 
to this Agreement or any other Loan Document against the Borrower or its
properties in the courts of any jurisdiction.

 

The Borrower and the Co-Borrower irrevocably and
unconditionally waive any objection which it may now or hereafter have to
the laying of venue of any such suit, action or proceeding described in
paragraph (b) of this Section and brought in any court referred to in paragraph
(b) of this Section. Each of the parties hereto irrevocably waives, to the
fullest extent permitted by applicable law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 

Each party to this Agreement irrevocably consents to
the service of process in the manner provided for notices in Section 10.1.  Nothing in this Agreement or in any other
Loan Document will affect the right of any party hereto to serve process in any
other manner permitted by law.

 

WAIVER OF
JURY TRIAL.  EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

 

Right of Setoff.  In addition to any rights now
or hereafter granted under applicable law and not by way of limitation of any
such rights, each Lender and the Issuing Bank shall have the right, at any time
or from time to time upon the occurrence and during the continuance of an Event
of Default, without prior notice to the Borrower or the Co-Borrower, any such
notice being expressly waived by the Borrower and the Co-Borrower to the extent
permitted by applicable law, to set off and apply against all deposits (general
or special, time or demand, provisional or final) of the Borrower and the
Co-Borrower at any time held or other obligations at any time owing by such
Lender and the Issuing Bank to or for the credit or the account of the Borrower
and the Co-Borrower against any and all Obligations held by such Lender or the
Issuing Bank, as the case may be, irrespective of whether such Lender or the
Issuing Bank shall have made demand hereunder and although such Obligations may
be unmatured. Each Lender and the Issuing Bank agree promptly to notify the
Administrative Agent and the Borrower after any such set-off and any
application made by such Lender and the Issuing Bank, as the case may be; provided,
that the failure to give such notice shall not affect the validity of such
set-off and application.

 

Counterparts; Integration.  This
Agreement may be executed by one or more of the parties to this Agreement on
any number of separate counterparts (including by telecopy), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. This Agreement, the other Loan Documents, and any separate letter
agreement(s) relating to any fees payable to the Administrative Agent
constitute the entire agreement among the parties hereto and thereto regarding
the subject matters hereof and thereof and supersede all prior agreements and
understandings, oral or written, regarding such subject matters.

 

Survival.  All covenants, agreements, representations
and warranties made by the Borrower herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making  of any Loans and issuance of any Letters of
Credit, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Administrative Agent, the Issuing Bank or
any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated.  The provisions of Sections 2.17, 2.18,
2.19, and 10.3 and Article IX shall survive and remain in full
force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this
Agreement or any provision hereof.  All
representations and warranties made herein, in the certificates, reports,
notices, and other documents delivered pursuant to this Agreement shall survive
the execution and delivery of this Agreement and the other Loan Documents, and
the making of the Loans and the issuance of the Letters of Credit.

 

Severability.  Any provision of this Agreement or any other
Loan Document held to be illegal, invalid or unenforceable in any jurisdiction,
shall, as to such jurisdiction, be ineffective to the extent of such
illegality, invalidity or unenforceability without affecting the legality,
validity or enforceability of  the
remaining provisions hereof or thereof; and the illegality, invalidity or unenforceability
of a particular provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

 

Confidentiality.  Each of the Administrative
Agent, the Issuing Bank and each Lender agrees to take normal and reasonable
precautions to maintain the confidentiality of any information designated in
writing as confidential and provided to it by the Borrower or any Subsidiary,
except that such information may be disclosed (i) to any Related Party of the
Administrative Agent, the Issuing Bank or any such Lender, including without
limitation accountants, legal counsel and other advisors, (ii) to the extent
required by applicable laws or regulations or by any subpoena or similar legal
process, (iii) to the extent requested by 
any regulatory agency or authority, (iv) to the extent that such
information becomes publicly available other than as a result of a breach of
this Section, or which becomes available to the Administrative Agent, the
Issuing Bank, any Lender or any Related Party of any of the foregoing on a
nonconfidential basis from a source other than the Borrower, (v) in connection
with the exercise of any  remedy
hereunder or any suit, action or proceeding relating to this Agreement or the
enforcement of rights hereunder, and (ix) subject to provisions substantially
similar to this Section 10.11, to any actual or prospective assignee or
Participant, or (vi) with the consent of the Borrower.  Any Person required to maintain the
confidentiality of any information as provided for in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
information as such Person would accord its own confidential information.

 

Interest Rate Limitation. 
Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any Loan, together with all fees, charges and other
amounts which may be treated as interest on such Loan under applicable law
(collectively, the “Charges”), shall exceed
the maximum lawful rate of interest (the “Maximum Rate”) which may be contracted for, charged, taken,
received or reserved by a Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges  that would have been payable in respect of
such Loan but were not payable as a result of the operation of this Section
shall be cumulated and the interest and Charges payable to such Lender in
respect of other Loans or periods shall be increased (but not above the Maximum
Rate therefor) until such cumulated amount, together with interest thereon at
the Federal Funds Rate to the date of repayment, shall have been received by
such Lender.

 

 

(remainder of page left intentionally blank)

 

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed under seal in the case of the Borrower
by their respective authorized officers as of the day and year first above
written.

 

	
   

  	
   

  	
  AARON
  RENTS, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
       /s/

  	
  Gilbert L. Danielson

  	
   

  
	
   

  	
  Name:

  	
  Gilbert L. Danielson

  
	
   

  	
  Title:

  	
  Executive Vice President
  and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  	
  [SEAL]

  
	
   

  	
   

  
	
   

  	
   

  	
  AARON
  RENTS, INC. PUERTO RICO

  
	
   

  	
   

  
	
   

  	
  By

  	
       /s/

  	
  Robert P. Sinclair

  	
   

  
	
   

  	
  Name:

  	
  Robert P. Sinclair

  
	
   

  	
  Title:

  	
  Treasurer

  
						

 

 

	
   

  	
  SUNTRUST
  BANK,

  
	
   

  	
  as
  Administrative Agent, as Issuing Bank, as

  Swingline Lender and as a Lender

  
	
   

  	
   

  
	
   

  	
  By

  	
      /s/

  	
  Donald M.
  Thompson

  	
   

  
	
   

  	
  Name:

  	
  Donald M. Thompson

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
  Address for
  Notices:

  	
  WACHOVIA
  BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
  Global
  Capital Markets

  	
   

  	
   

  
	
  1339
  Chestnut St., PA 4843

  	
  By:

  	
        /s/Anthony
  D. Braxton

  	
   

  
	
  Philadelphia,
  PA 19107

  	
   

  	
  Name:

  	
  Anthony D.
  Braxton

  
	
  Attn:  Anthony Braxton

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:
  (267) 321-6700

  	
   

  	
   

  
					

 

 

	
  Address for
  Notices:

  	
  SOUTHTRUST
  BANK

  
	
  600 West
  Peachtree Street

  	
   

  
	
  22nd
  Floor

  	
   

  
	
  Atlanta,
  Georgia 30308

  	
  By:

  	
          /s/

  	
  R. Fontenot

  	
   

  
	
  Attn:  Ronald Fontenot

  	
   

  	
  Name:

  	
  R. Fontenot

  
	
  Telecopy:  (404) 853-5766

  	
   

  	
  Title:

  	
  Vice
  President

  

 

 

	
  Address for
  Notices:

  	
  REGIONS BANK

  
	
  One Glenlake
  Parkway

  	
   

  
	
  Suite 400

  	
   

  
	
  Atlanta,
  GA  30328

  	
  By:

  	
          /s/

  	
  Stephen H.
  Lee

  	
   

  
	
  Attn:  Stephen H. Lee

  	
   

  	
  Name:

  	
  Stephen H.
  Lee

  
	
  Telecopy:  (770) 481-4395

  	
   

  	
  Title:

  	
  Senior Vice
  President

  

 

 

	
  Address for
  Notices:

  	
  BRANCH
  BANKING  & TRUST CO.

  
	
  950 E. Paces
  Ferry Road

  	
   

  
	
  Atlanta,
  GA  30326

  	
  By:

  	
          /s/

  	
  Paul E.
  McLaughlin

  	
   

  
	
  Attn:  Paul McLauglin

  	
   

  	
  Name:

  	
  Paul E.
  McLaughlin

  
	
  Telecopy:  (404) 442-5087

  	
   

  	
  Title:

  	
  Senior Vice
  President

  

 

 

Schedule
1.1(a)

 

APPLICABLE MARGIN AND APPLICABLE PERCENTAGE

 

	
   

  	
   

  	
  Three-Year Revolving Credit Facility

  	
   

  
	
   

  	
   

  	
  Total Debt to EBITDA Ratio

  	
   

  
	
  (Basis Points Per Annum)

  	
   

  	
  Level I

  	
   

  	
  Level II

  	
   

  	
  Level III

  	
   

  	
  Level IV

  	
   

  
	
  Facility Pricing

  	
   

  	
  < 1.50

  	
   

  	
  > 1.50 &< 2.00

  	
   

  	
  > 2.00 &< 2.50

  	
   

  	
  > 2.50

  	
   

  
	
  Applicable Margin

  	
   

  	
  87.5

  	
   

  	
  100.0

  	
   

  	
  125.0

  	
   

  	
  150.0

  	
   

  
	
  Applicable Percentage

  	
   

  	
  15.0

  	
   

  	
  20.0

  	
   

  	
  25.0

  	
   

  	
  30.0

  	
   

  

 

 

Schedule
1.1(b)

 

LENDER
COMMITMENTS

 

	
  Lender

  	
   

  	
  Commitment Amount

  	
   

  
	
  SunTrust Bank

  	
   

  	
  $

  	
  27,527,343.74

  	
   

  
	
  Wachovia Bank, National Association

  	
   

  	
  $

  	
  19,031,250.01

  	
   

  
	
  SouthTrust Bank

  	
   

  	
  $

  	
  16,652,343.76

  	
   

  
	
  Regions Bank

  	
   

  	
  $

  	
  14,273,437.49

  	
   

  
	
  Branch Banking & Trust Co.

  	
   

  	
  $

  	
  9,515,625.00

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  87,000,000.00

  	
   

  

 

 

Schedule 4.5(a)

 

LITIGATION

 

 

SCHEDULE
4.5(b)

 

ENVIRONMENTAL MATTERS

 

 

SCHEDULE 4.14

 

SUBSIDIARIES

 

 

SCHEDULE 7.1

 

OUTSTANDING INDEBTEDNESS

 

 

SCHEDULE 7.2

 

EXISTING LIENS

 

 

SCHEDULE 7.4

 

EXISTING INVESTMENTS

 

 

REVOLVING CREDIT NOTE

 

	
  $27,527,343.74

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. (the “Borrower”)
hereby promises to pay to SunTrust Bank (the “Lender”) or its registered assigns, at the office
of SunTrust Bank (“SunTrust”)
at 303 Peachtree Street, N.E., Atlanta, Georgia 30308, on the Revolving
Commitment Termination Date (as defined in the Revolving Credit Agreement dated
as of May 28 ,2004 (as the same may be amended, supplemented or otherwise
modified from time to time, the “Credit
Agreement”), among the Borrower, Aaron Rents, Inc., the
lenders from time to time party thereto, SunTrust, as administrative agent for
the lenders, and Wachovia Bank, National Association, as Syndication Agent, the
lesser of the principal sum of TWENTY SEVEN MILLION FIVE HUNDRED TWENTY SEVEN
THOUSAND THREE HUNDRED FORTY THREE DOLLARS AND SEVENTY FOUR CENTS
($27,527,343.74) and the aggregate unpaid principal amount of all Revolving
Loans made by the Lender to the Borrower pursuant to the Credit Agreement, in
lawful money of the United States of America in immediately available funds, and
to pay interest from the date hereof on the principal amount thereof from time
to time outstanding, in like funds, at said office, at the rate or rates per
annum and payable on such dates as provided in the Credit Agreement.  In addition, should legal action or an
attorney-at-law be utilized to collect any amount due hereunder, the Borrower
further promises to pay all costs of collection, including the reasonable
attorneys’ fees of the Lender.

 

The Borrower
promises to pay interest, on demand, on any overdue principal and, to the
extent permitted by law, overdue interest from their due dates at a rate or
rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Borrower to make the payments
of principal and interest in accordance with the terms of this Revolving Credit
Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof prior to the maturity hereof and for the
amendment or waiver of certain provisions of the Credit Agreement, all upon the
terms and conditions therein specified.

 

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Gilbert L. Danielson

  	
   

  
	
   

  	
  Name:

  	
  Gilbert L.
  Danielson

  	
   

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
  [SEAL]

  
						

 

 

REVOLVING CREDIT NOTE

 

	
  $19,031,250.01

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. (the “Borrower”)
hereby promises to pay to Wachovia Bank, National Association (the “Lender”) or its registered
assigns, at the office of SunTrust Bank (“SunTrust”)
at 303 Peachtree Street, N.E., Atlanta, Georgia 30308, on the Revolving
Commitment Termination Date (as defined in the Revolving Credit Agreement dated
as of May 28, 2004 (as the same may be amended, supplemented or otherwise
modified from time to time, the “Credit
Agreement”), among the Borrower, Aaron Rents, Inc., the
lenders from time to time party thereto, SunTrust, as administrative agent for
the lenders, and Wachovia Bank, National Association, as Syndication Agent, the
lesser of the principal sum of  NINETEEN
MILLION THIRTY ONE THOUSAND TWO HUNRED FIFTY DOLLARS AND ONE CENT
($19,031,250.01) and the aggregate unpaid principal amount of all Revolving
Loans made by the Lender to the Borrower pursuant to the Credit Agreement, in
lawful money of the United States of America in immediately available funds,
and to pay interest from the date hereof on the principal amount thereof from
time to time outstanding, in like funds, at said office, at the rate or rates
per annum and payable on such dates as provided in the Credit Agreement.  In addition, should legal action or an
attorney-at-law be utilized to collect any amount due hereunder, the Borrower
further promises to pay all costs of collection, including the reasonable
attorneys’ fees of the Lender.

 

The Borrower
promises to pay interest, on demand, on any overdue principal and, to the
extent permitted by law, overdue interest from their due dates at a rate or
rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Borrower to make the payments
of principal and interest in accordance with the terms of this Revolving Credit
Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof prior to the maturity hereof and for the
amendment or waiver of certain provisions of the Credit Agreement, all upon the
terms and conditions therein specified.

 

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Gilbert L. Danielson

  	
   

  
	
   

  	
  Name:

  	
  Gilbert L.
  Danielson

  	
   

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  
						

 

 

REVOLVING CREDIT NOTE

 

	
  $16,652,343.76

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. (the “Borrower”)
hereby promises to pay to SouthTrust Bank (the “Lender”) or its registered assigns, at the office
of SunTrust Bank (“SunTrust”)
at 303 Peachtree Street, N.E., Atlanta, Georgia 30308, on the Revolving
Commitment Termination Date (as defined in the Revolving Credit Agreement dated
as of May 28, 2004 (as the same may be amended, supplemented or otherwise
modified from time to time, the “Credit
Agreement”), among the Borrower, Aaron Rents, Inc., the
lenders from time to time party thereto, SunTrust, as administrative agent for
the lenders, and Wachovia Bank, National Association, as Syndication Agent, the
lesser of the principal sum of SIXTEEN MILLION SIX HUNDRED FIFTY TWO THOUSAND
THREE HUNRED FORTY THREE DOLLARS AND SEVENTY SIX CENTS ($16,652,343.76) and the
aggregate unpaid principal amount of all Revolving Loans made by the Lender to
the Borrower pursuant to the Credit Agreement, in lawful money of the United
States of America in immediately available funds, and to pay interest from the
date hereof on the principal amount thereof from time to time outstanding, in
like funds, at said office, at the rate or rates per annum and payable on such
dates as provided in the Credit Agreement. 
In addition, should legal action or an attorney-at-law be utilized to
collect any amount due hereunder, the Borrower further promises to pay all
costs of collection, including the reasonable attorneys’ fees of the Lender.

 

The Borrower
promises to pay interest, on demand, on any overdue principal and, to the
extent permitted by law, overdue interest from their due dates at a rate or
rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Borrower to make the payments
of principal and interest in accordance with the terms of this Revolving Credit
Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof

 

 

prior to the maturity hereof and for the amendment or waiver of certain
provisions of the Credit Agreement, all upon the terms and conditions therein
specified.

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Gilbert L. Danielson

  	
   

  
	
   

  	
  Name:

  	
  Gilbert L.
  Danielson

  	
   

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  
						

 

 

REVOLVING CREDIT NOTE

 

	
  $14,273,437.49

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. (the “Borrower”)
hereby promises to pay to Regions Bank (the “Lender”)
or its registered assigns, at the office of SunTrust Bank (“SunTrust”) at 303 Peachtree Street, N.E.,
Atlanta, Georgia 30308, on the Revolving Commitment Termination Date (as
defined in the Revolving Credit Agreement dated as of May 28 ,2004 (as the same
may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among
the Borrower, Aaron Rents, Inc., the lenders from time to time party thereto,
SunTrust, as administrative agent for the lenders, and Wachovia Bank, National
Association, as Syndication Agent, the lesser of the principal sum of FOURTEEN
MILLION TWO HUNDRED SEVENTY THREE THOUSAND FOUR HUNDRED THIRTY SEVEN DOLLARS
AND FORTY NINE CENTS ($14,273,437.49) and the aggregate unpaid principal amount
of all Revolving Loans made by the Lender to the Borrower pursuant to the
Credit Agreement, in lawful money of the United States of America in
immediately available funds, and to pay interest from the date hereof on the
principal amount thereof from time to time outstanding, in like funds, at said
office, at the rate or rates per annum and payable on such dates as provided in
the Credit Agreement.  In addition,
should legal action or an attorney-at-law be utilized to collect any amount due
hereunder, the Borrower further promises to pay all costs of collection,
including the reasonable attorneys’ fees of the Lender.

 

The Borrower
promises to pay interest, on demand, on any overdue principal and, to the
extent permitted by law, overdue interest from their due dates at a rate or
rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Borrower to make the payments
of principal and interest in accordance with the terms of this Revolving Credit
Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof

 

 

prior to the maturity hereof
and for the amendment or waiver of certain provisions of the Credit Agreement,
all upon the terms and conditions therein specified.

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Gilbert L. Danielson

  	
   

  
	
   

  	
  Name:

  	
  Gilbert L.
  Danielson

  	
   

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  
						

 

 

REVOLVING CREDIT NOTE

 

	
  $9,515,625.00

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. (the “Borrower”)
hereby promises to pay to Branch Banking & Trust. Co. (the “Lender”) or its registered
assigns, at the office of SunTrust Bank (“SunTrust”)
at 303 Peachtree Street, N.E., Atlanta, Georgia 30308, on the Revolving
Commitment Termination Date (as defined in the Revolving Credit Agreement dated
as of May 28, 2004 (as the same may be amended, supplemented or otherwise
modified from time to time, the “Credit
Agreement”), among the Borrower, Aaron Rents, Inc., the
lenders from time to time party thereto, SunTrust, as administrative agent for
the lenders, and Wachovia Bank, National Association, as Syndication Agent, the
lesser of the principal sum of NINE MILLION FIVE HUNRED FIFTEEN THOUSAND SIX
HUNRED TWENTY FIVE DOLLARS ($9,515,625.00) and the aggregate unpaid principal
amount of all Revolving Loans made by the Lender to the Borrower pursuant to
the Credit Agreement, in lawful money of the United States of America in
immediately available funds, and to pay interest from the date hereof on the
principal amount thereof from time to time outstanding, in like funds, at said
office, at the rate or rates per annum and payable on such dates as provided in
the Credit Agreement.  In addition,
should legal action or an attorney-at-law be utilized to collect any amount due
hereunder, the Borrower further promises to pay all costs of collection,
including the reasonable attorneys’ fees of the Lender.

 

The Borrower
promises to pay interest, on demand, on any overdue principal and, to the
extent permitted by law, overdue interest from their due dates at a rate or
rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Borrower to make the payments
of principal and interest in accordance with the terms of this Revolving Credit
Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof

 

 

prior to the maturity hereof
and for the amendment or waiver of certain provisions of the Credit Agreement,
all upon the terms and conditions therein specified.

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Gilbert L. Danielson

  	
   

  
	
   

  	
  Name:

  	
  Gilbert L.
  Danielson

  	
   

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  
						

 

 

REVOLVING CREDIT NOTE

 

	
  $3,281,250.00

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. Puerto Rico(the “Co-Borrower”) hereby promises to pay
to Wachovia Bank, National Association (the “Lender”)
or its registered assigns, at the office of SunTrust Bank (“SunTrust”) at 303 Peachtree Street, N.E.,
Atlanta, Georgia 30308, on the Revolving Commitment Termination Date (as
defined in the Revolving Credit Agreement dated as of May 28 ,2004 (as the same
may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among
the Co-Borrower, Aaron Rents, Inc. Puerto Rico, the lenders from time to time
party thereto, SunTrust, as administrative agent for the lenders, and Wachovia
Bank, National Association, as Syndication Agent, the lesser of the principal
sum of THREE MILLION TWO HUNDRED EIGHTY ONE THOUSAND TWO HUNDRED FIFTY DOLLARS
($3,281,250.00) and the aggregate unpaid principal amount of all Revolving
Loans made by the Lender to the Co-Borrower pursuant to the Credit Agreement,
in lawful money of the United States of America in immediately available funds,
and to pay interest from the date hereof on the principal amount thereof from
time to time outstanding, in like funds, at said office, at the rate or rates
per annum and payable on such dates as provided in the Credit Agreement.  In addition, should legal action or an
attorney-at-law be utilized to collect any amount due hereunder, the
Co-Borrower further promises to pay all costs of collection, including the
reasonable attorneys’ fees of the Lender.

 

The
Co-Borrower promises to pay interest, on demand, on any overdue principal and,
to the extent permitted by law, overdue interest from their due dates at a rate
or rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Co-Borrower to make the
payments of principal and interest in accordance with the terms of this
Revolving Credit Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof prior to the maturity hereof and for the
amendment or waiver of certain provisions of the Credit Agreement, all upon the
terms and conditions therein specified.

 

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC. PUERTO RICO

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Robert P. Sinclair, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Robert P.
  Sinclair, Jr.

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  
					

 

 

REVOLVING CREDIT NOTE

 

	
  $2,871,093.75

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. Puerto Rico(the “Co-Borrower”) hereby promises to pay
to SouthTrust Bank (the “Lender”)
or its registered assigns, at the office of SunTrust Bank (“SunTrust”) at 303 Peachtree Street, N.E.,
Atlanta, Georgia 30308, on the Revolving Commitment Termination Date (as
defined in the Revolving Credit Agreement dated as of May 28 ,2004 (as the same
may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among
the Co-Borrower, Aaron Rents, Inc. Puerto Rico, the lenders from time to time
party thereto, SunTrust, as administrative agent for the lenders, and Wachovia
Bank, National Association, as Syndication Agent, the lesser of the principal
sum of TWO MILLION EIGHT HUNRED SEVNETY ONE THOUSAND NINETY THREE DOLLARS AND
SEVENTY FIVE CENTS ($2,871,093.75) and the aggregate unpaid principal amount of
all Revolving Loans made by the Lender to the Co-Borrower pursuant to the
Credit Agreement, in lawful money of the United States of America in
immediately available funds, and to pay interest from the date hereof on the
principal amount thereof from time to time outstanding, in like funds, at said office,
at the rate or rates per annum and payable on such dates as provided in the
Credit Agreement.  In addition, should
legal action or an attorney-at-law be utilized to collect any amount due
hereunder, the Co-Borrower further promises to pay all costs of collection,
including the reasonable attorneys’ fees of the Lender.

 

The
Co-Borrower promises to pay interest, on demand, on any overdue principal and,
to the extent permitted by law, overdue interest from their due dates at a rate
or rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Co-Borrower to make the
payments of principal and interest in accordance with the terms of this
Revolving Credit Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof prior to the maturity hereof and for the
amendment or waiver of certain provisions of the Credit Agreement, all upon the
terms and conditions therein specified.

 

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC. PUERTO RICO

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Robert P. Sinclair, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Robert P.
  Sinclair, Jr.

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  
					

 

 

REVOLVING CREDIT NOTE

 

	
  $2,460,937.50

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. Puerto Rico(the “Co-Borrower”) hereby promises to pay
to Regions Bank (the “Lender”)
or its registered assigns, at the office of SunTrust Bank (“SunTrust”) at 303 Peachtree Street, N.E.,
Atlanta, Georgia 30308, on the Revolving Commitment Termination Date (as
defined in the Revolving Credit Agreement dated as of May 28 ,2004 (as the same
may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among
the Co-Borrower, Aaron Rents, Inc. Puerto Rico, the lenders from time to time
party thereto, SunTrust, as administrative agent for the lenders, and Wachovia
Bank, National Association, as Syndication Agent, the lesser of the principal
sum of TWO MILLION FOUR HUNRED SIXTY THOUSAND NINE HUNDRED THIRTY SEVEN DOLLARS
AND FIFTY CENTS ($2,460,937.50) and the aggregate unpaid principal amount of
all Revolving Loans made by the Lender to the Co-Borrower pursuant to the
Credit Agreement, in lawful money of the United States of America in immediately
available funds, and to pay interest from the date hereof on the principal
amount thereof from time to time outstanding, in like funds, at said office, at
the rate or rates per annum and payable on such dates as provided in the Credit
Agreement.  In addition, should legal
action or an attorney-at-law be utilized to collect any amount due hereunder,
the Co-Borrower further promises to pay all costs of collection, including the
reasonable attorneys’ fees of the Lender.

 

The
Co-Borrower promises to pay interest, on demand, on any overdue principal and,
to the extent permitted by law, overdue interest from their due dates at a rate
or rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Co-Borrower to make the
payments of principal and interest in accordance with the terms of this
Revolving Credit Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof prior to the maturity hereof and for the
amendment or waiver of certain provisions of the Credit Agreement, all upon the
terms and conditions therein specified.

 

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC. PUERTO RICO

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Robert P. Sinclair, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Robert P.
  Sinclair, Jr.

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  
					

 

 

REVOLVING CREDIT NOTE

 

	
  $1,640,625.00

  	
   

  	
  Atlanta,
  Georgia,

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. Puerto Rico(the “Co-Borrower”) hereby promises to pay
to Branch Bank & Trust (the “Lender”)
or its registered assigns, at the office of SunTrust Bank (“SunTrust”) at 303 Peachtree Street, N.E.,
Atlanta, Georgia 30308, on the Revolving Commitment Termination Date (as
defined in the Revolving Credit Agreement dated as of May 28, 2004 (as the same
may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among
the Co-Borrower, Aaron Rents, Inc. Puerto Rico, the lenders from time to time
party thereto, SunTrust, as administrative agent for the lenders, and Wachovia
Bank, National Association, as Syndication Agent, the lesser of the principal
sum of ONE MILLION SIX HUNDRED FORTY SIX THOUSAND SIX HUNDRED TWENTY FIVE
DOLLARS ($1,640,625.00) and the aggregate unpaid principal amount of all
Revolving Loans made by the Lender to the Co-Borrower pursuant to the Credit
Agreement, in lawful money of the United States of America in immediately
available funds, and to pay interest from the date hereof on the principal
amount thereof from time to time outstanding, in like funds, at said office, at
the rate or rates per annum and payable on such dates as provided in the Credit
Agreement.  In addition, should legal
action or an attorney-at-law be utilized to collect any amount due hereunder,
the Co-Borrower further promises to pay all costs of collection, including the
reasonable attorneys’ fees of the Lender.

 

The
Co-Borrower promises to pay interest, on demand, on any overdue principal and,
to the extent permitted by law, overdue interest from their due dates at a rate
or rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Co-Borrower to make the
payments of principal and interest in accordance with the terms of this
Revolving Credit Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof prior to the maturity hereof and for the
amendment or waiver of certain provisions of the Credit Agreement, all upon the
terms and conditions therein specified.

 

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC. PUERTO RICO

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Robert P. Sinclair, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Robert P.
  Sinclair, Jr.

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  
					

 

 

REVOLVING CREDIT NOTE

 

	
  $4,746,093.75

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc. Puerto Rico(the “Co-Borrower”) hereby promises to pay
to SunTrust Bank (the “Lender”)
or its registered assigns, at the office of SunTrust Bank (“SunTrust”) at 303 Peachtree Street, N.E.,
Atlanta, Georgia 30308, on the Revolving Commitment Termination Date (as
defined in the Revolving Credit Agreement dated as of May 28, 2004 (as the same
may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the
Co-Borrower, Aaron Rents, Inc. Puerto Rico, the lenders from time to time party
thereto, SunTrust, as administrative agent for the lenders, and Wachovia Bank,
National Association, as Syndication Agent, the lesser of the principal sum of
FOUR MILLION SEVEN HUNDRED FORTY SIX THOUSAND NINETY THREE DOLLARS AND SEVENTY
FIVE CENTS ($4,746,093.75) and the aggregate unpaid principal amount of all
Revolving Loans made by the Lender to the Co-Borrower pursuant to the Credit
Agreement, in lawful money of the United States of America in immediately
available funds, and to pay interest from the date hereof on the principal
amount thereof from time to time outstanding, in like funds, at said office, at
the rate or rates per annum and payable on such dates as provided in the Credit
Agreement.  In addition, should legal
action or an attorney-at-law be utilized to collect any amount due hereunder,
the Co-Borrower further promises to pay all costs of collection, including the
reasonable attorneys’ fees of the Lender.

 

The Co-Borrower
promises to pay interest, on demand, on any overdue principal and, to the
extent permitted by law, overdue interest from their due dates at a rate or
rates provided in the Credit Agreement.

 

All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Co-Borrower to make the
payments of principal and interest in accordance with the terms of this
Revolving Credit Note and the Credit Agreement.

 

This Revolving
Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof prior to the maturity hereof and for the
amendment or waiver of certain provisions of the Credit Agreement, all upon the
terms and conditions therein specified.

 

 

THIS REVOLVING
CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC. PUERTO RICO

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Robert P. Sinclair, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Robert P.
  Sinclair, Jr.

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  [SEAL]

  
					

 

 

SWINGLINE NOTE

 

	
  $12,000,000.00

  	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
   

  	
  May 28, 2004

  

 

FOR VALUE
RECEIVED, the undersigned, Aaron Rents, Inc., a Georgia corporation (the “Borrower”), hereby promises
to pay to SunTrust Bank (the “Swingline
Lender”) or its registered assigns, at the office of
SunTrust Bank (“SunTrust”)
at 303 Peachtree Street, N.E., Atlanta, Georgia 30308, on the Swingline
Termination Date (as defined in the Revolving Credit Agreement dated as of May
28, 2004 (as the same may be amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”),
among the Borrower, Aaron Rents, Inc., 
the lenders from time to time party thereto, SunTrust, as administrative
agent for the lenders and Wachovia Bank, National  Association, as Syndication Agent, the lesser
of the principal sum of TWELVE MILLION AND NO/100 DOLLARS ($12,000,000.00) and
the aggregate unpaid principal amount of all Swingline Loans made by the Swingline
Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the
United States of America in immediately available funds, and to pay interest
from the date hereof on the principal amount thereof from time to time
outstanding, in like funds, at said office, at the rate or rates per annum and
payable on such dates as provided in the Credit Agreement. In addition, should
legal action or an attorney-at-law be utilized to collect any amount due
hereunder, the Borrower further promises to pay all costs of collection,
including the reasonable attorneys’ fees of the Swingline Lender.

 

The Borrower
promises to pay interest, on demand, on any overdue principal and, to the
extent permitted by law, overdue interest from their due dates at a rate or rates
provided in the Credit Agreement.

 

All borrowings
evidenced by this Swingline Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof, or otherwise
recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such
notation shall not affect the obligations of the Borrower to make the payments
of principal and interest in accordance with the terms of  this Swingline Note and the Credit Agreement.

 

This Swingline
Note is issued in connection with, and is entitled to the benefits of, the
Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
optional and mandatory prepayment of the principal hereof prior to the maturity
hereof and for the amendment or waiver of certain provisions of the Credit
Agreement, all upon the terms and conditions therein specified.

 

 

THIS SWINGLINE
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF GEORGIA, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

	
   

  	
  AARON RENTS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/  Gilbert
  L. Danielson

  	
   

  
	
   

  	
  Name:

  	
  Gilbert L.
  Danielson

  
	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [SEAL]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]