Document:

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                                                                   EXHIBIT 10.11

                               GUARANTEE AGREEMENT

                                     Between

                               CCF HOLDING COMPANY
                                  as Guarantor,

                                       and

                            WILMINGTON TRUST COMPANY
                              as Guarantee Trustee,

                          Dated as of February 1, 2002

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                               CCF CAPITAL TRUST I

            Certain Sections of this Guarantee Agreement relating to
                         Sections 310 through 318 of the
                          Trust Indenture Act of 1939:

Trust Indenture                                              Guarantee Agreement
  Act Section                                                            Section
---------------                                              -------------------
Section 310     (a) (1)........................................4.1 (a)
                (a) (2)........................................4.1 (a)
                (a) (3)........................................Not Applicable
                (a) (4)........................................Not Applicable
                (b)............................................2.8, 4.1 (c)
Section 311     (a)............................................Not Applicable
                (b)............................................Not Applicable
Section 312     (a)............................................2.2 (a)
                (b)............................................2.2 (b)
                (c)............................................Not Applicable
Section 313     (a)............................................2.3
                (a) (4)........................................2.3
                (b)............................................2.3
                (c)............................................2.3
                (d)............................................2.3
Section 314     (a)............................................2.4
                (b)............................................2.4
                (c) (1)........................................2.5
                (c) (2)........................................2.5
                (c) (3)........................................2.5
                (e)............................................1.1, 2.5, 3.2
Section 315     (a)............................................3.1 (d)
                (b)............................................2.7
                (c)............................................3.1 (c)
                (d)............................................3.1 (d)
                (e)............................................Not Applicable
Section 316     (a)............................................1.1, 2.6, 5.4
                (a) (1) (A)....................................5.4
                (a) (1) (B)....................................5.4
                (a) (2)........................................Not Applicable
                (b)............................................5.3
                (c)............................................Not Applicable
Section 317     (a) (1)........................................Not Applicable
                (a) (2)........................................Not Applicable
                (b)............................................Not Applicable

                                       (i)

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Section 318     (a)............................................2.1

Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Guarantee Agreement.

                                      (ii)

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                                TABLE OF CONTENTS
                                -----------------

ARTICLE I      DEFINITIONS.....................................................1
SECTION 1.1.   Definitions.....................................................1

ARTICLE II.    TRUST INDENTURE ACT.............................................4
SECTION 2.1.   Trust Indenture Act; Application................................4
SECTION 2.2.   List of Holders.................................................5
SECTION 2.3.   Reports by the Guarantee Trustee................................5
SECTION 2.4.   Periodic Reports to the Guarantee Trustee.......................5
SECTION 2.5.   Evidence of Compliance with Conditions Precedent................5
SECTION 2.6.   Events of Default; Waiver.......................................5
SECTION 2.7.   Event of Default; Notice........................................6
SECTION 2.8.   Conflicting Interests...........................................6

ARTICLE III.   POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE..............6
SECTION 3.1.   Powers and Duties of the Guarantee Trustee......................6
SECTION 3.2.   Certain Rights of Guarantee Trustee.............................7
SECTION 3.3.   Indemnity.......................................................9
SECTION 3.4.   Expenses........................................................9

ARTICLE IV.    GUARANTEE TRUSTEE...............................................9
SECTION 4.1.   Guarantee Trustee; Eligibility..................................9
SECTION 4.2.   Appointment, Removal and Resignation of the Guarantee Trustee..10

ARTICLE V.     GUARANTEE......................................................11
SECTION 5.1.   Guarantee......................................................11
SECTION 5.2.   Waiver of Notice and Demand....................................11
SECTION 5.3.   Obligations Not Affected.......................................11
SECTION 5.4.   Rights of Holders..............................................12
SECTION 5.5.   Guarantee of Payment...........................................12
SECTION 5.6.   Subrogation....................................................12
SECTION 5.7.   Independent Obligations........................................13

ARTICLE VI.    COVENANTS AND SUBORDINATION....................................13
SECTION 6.1.   Subordination..................................................13
SECTION 6.2.   Pari Passu Guarantees..........................................13

ARTICLE VII.   TERMINATION....................................................13
SECTION 7.1.   Termination....................................................13

ARTICLE VIII.  MISCELLANEOUS..................................................14

                                      (iii)

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SECTION 8.1.   Successors and Assigns.........................................14
SECTION 8.2.   Amendments.....................................................14
SECTION 8.3.   Notices........................................................14
SECTION 8.4.   Benefit........................................................15
SECTION 8.5.   Interpretation.................................................15
SECTION 8.6.   Governing Law..................................................16
SECTION 8.7.   Counterparts...................................................16

                                      (iv)

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                               GUARANTEE AGREEMENT

          THIS GUARANTEE AGREEMENT, dated as of February 1, 2002, is executed
and delivered by CCF HOLDING COMPANY, a Georgia corporation (the "Guarantor"),
                                                                  ---------
having its principal office at 101 North Main Street, Jonesboro, Georgia
30236-3294, and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as
trustee (the "Guarantee Trustee"), for the benefit of the Holders (as defined
              -----------------
herein) from time to time of the Capital Securities (as defined herein) of CCF
CAPITAL TRUST I, a Delaware statutory business trust (the "Issuer Trust").
                                                           ------------

          Pursuant to an Amended and Restated Trust Agreement (the "Trust
                                                                    -----
Agreement"), dated as of February 1, 2002, among CCF Holding Company, as
---------
Depositor, Wilmington Trust Company, as Property Trustee (the "Property
                                                               --------
Trustee"), Wilmington Trust Company, as Delaware Trustee (the "Delaware
-------                                                        --------
Trustee", and together with the Property Trustee, collectively, the "Issuer
-------                                                              ------
Trustees"), the Administrators named therein and the Holders from time to time
--------
of undivided beneficial interests in the assets of the Issuer Trust, the Issuer
Trust is issuing up to $4,000,000 aggregate Liquidation Amount (as defined
herein) of its Floating Rate Capital Securities (the "Capital Securities"),
                                                      ------- -----------
representing preferred undivided beneficial interests in the assets of the
Issuer Trust and having the terms set forth in the Trust Agreement;

          The Capital Securities will be issued by the Issuer Trust and the
proceeds thereof, together with the proceeds from the issuance of the Issuer
Trust's Common Securities (the "Common Securities"), representing common
                                -----------------
undivided beneficial interests in the assets of the Issuer Trust of the
Guarantor, will be used to purchase the Junior Subordinated Debentures due March
31, 2032 (the "Junior Subordinated Debentures") of the Guarantor which will be
               ------------------------------
deposited with Wilmington Trust Company, as Property Trustee under the Trust
Agreement, as trust assets; and

          As an inducement to the Holders to purchase the Capital Securities,
the Guarantor is willing to irrevocably and unconditionally agree, to the extent
set forth herein, to pay to the Holders of the Capital Securities the Guarantee
Payments (as defined herein) and to make certain other payments on the terms and
conditions set forth herein.

          NOW, THEREFORE, in consideration of the purchase of the Capital
Securities by each Holder, which purchase the Guarantor hereby acknowledges
shall benefit the Guarantor, the Guarantor, intending to be legally bound
hereby, executes and delivers this Guarantee Agreement for the benefit of the
Holders from time to time of the Capital Securities.

                             ARTICLE I. DEFINITIONS

     SECTION 1.1. Definitions.

          As used in this Guarantee Agreement, the terms set forth below shall
have the following meanings. Capitalized terms used but not otherwise defined
herein shall have the meanings assigned to such terms in the Trust Agreement.

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          "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

          "Event of Default" means (i) a default by the Guarantor in any of its
payment obligations under this Guarantee Agreement, or (ii) a default by the
Guarantor in any other obligation hereunder that remains unremedied for 30 days.

          "Guarantee Agreement" means this Guarantee Agreement, as modified,
amended or supplemented from time to time.

          "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Capital Securities, to the extent not
paid or made by or on behalf of the Issuer Trust: (i) any accumulated and unpaid
Distributions (as defined in the Trust Agreement) required to be paid on the
Capital Securities, to the extent the Issuer Trust shall have funds on hand
available therefor at such time, (ii) the Redemption Price, with respect to the
Capital Securities called for redemption by the Issuer Trust to the extent that
the Issuer Trust shall have funds on hand available therefor at such time, and
(iii) upon a voluntary or involuntary dissolution, termination, winding-up or
liquidation of the Issuer Trust, unless the Junior Subordinated Debentures are
distributed to the Holders, the lesser of (a) the aggregate of the Liquidation
Amount of all outstanding Trust Securities and all accumulated and unpaid
Distributions to the date of payment to the extent the Issuer Trust shall have
funds on hand available to make such payment at such time and (b) the amount of
assets of the Issuer Trust remaining available for distribution to Holders on
liquidation of the Issuer Trust (in either case, the "Liquidation
Distribution").

          "Guarantee Trustee" means Wilmington Trust Company, until a Successor
Guarantee Trustee has been appointed and has accepted such appointment pursuant
to the terms of this Guarantee Agreement and thereafter means each such
Successor Guarantee Trustee.

          "Guarantor" shall have the meaning specified in the first paragraph of
this Guarantee Agreement.

          "Holder" means any holder, as registered on the books and records of
the Issuer Trust, of any Capital Securities; provided, however, that, in
determining whether the holders of the requisite percentage of Capital
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor, the Guarantee Trustee, or any Affiliate of the
Guarantor or the Guarantee Trustee.

          "Indenture" means the Junior Subordinated Indenture dated as of
February 1, 2002, between CCF Holding Company and Wilmington Trust Company, as
trustee, as may be modified, amended or supplemented from time to time.

                                      -2-

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          "Issuer Trust" shall have the meaning specified in the first paragraph
of this Guarantee Agreement.

          "Like Amount" means (a) with respect to a redemption of Trust
Securities, Trust Securities having a Liquidation Amount equal to that portion
of the principal amount of Junior Subordinated Debentures to be
contemporaneously redeemed in accordance with the Indenture, allocated to the
Common Securities and to the Capital Securities based upon the relative
Liquidation Amounts of such classes and (b) with respect to a distribution of
Junior Subordinated Debentures to Holders of Trust Securities in connection with
a dissolution or liquidation of the Issuer Trust, Junior Subordinated Debentures
having a principal amount equal to the Liquidation Amount of the Trust
Securities of the Holder to whom such Junior Subordinated Debentures are
distributed.

          "Liquidation Amount" means the stated amount of $50,000.00 per Capital
Security.

          "Majority in Liquidation Amount of the Capital Securities" means,
except as provided by the Trust Indenture Act, Capital Securities representing
more than 50% of the aggregate Liquidation Amount of all then outstanding
Capital Securities issued by the Issuer Trust.

          "Officers' Certificate" means a certificate signed by the Chairman of
the Board, Vice Chairman of the Board, Chief Executive Officer, President,
Executive Vice President or a Senior Vice President or Vice President, and by
the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary
of the Guarantor, and delivered to the Guarantee Trustee. Any Officers'
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Guarantee Agreement shall include:

          (a) a statement by each officer signing the Officers' Certificate that
such officer has read the covenant or condition and the definitions relating
thereto;

          (b) a brief statement of the nature and scope of the examination or
investigation undertaken by such officer in rendering the Officers' Certificate;

          (c) a statement that such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and

          (d) a statement as to whether, in the opinion of such officer, such
condition or covenant has been complied with.

          "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

          "Redemption Date" means, with respect to any Capital Security to be
redeemed, the date fixed for such redemption by or pursuant to the Trust
Agreement; provided that each Debenture

                                      -3-

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Redemption Date and the stated maturity of the Junior Subordinated Debentures
shall be a Redemption Date for a Like Amount of Capital Securities, including,
but not limited to any date of redemption pursuant to the occurrence of any
Special Event.

          "Redemption Price" shall have the meaning specified in the Trust
Agreement.

          "Responsible Officer" means, when used with respect to the Guarantee
Trustee, any officer assigned to the Corporate Trust Office, including any
managing director, vice president, principal, assistant vice president,
assistant treasurer, assistant secretary or any other officer of the Guarantee
Trustee customarily performing functions similar to those performed by any of
the above designated officers and having direct responsibility for the
administration of this Guarantee Agreement, and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.

          "Senior Indebtedness" shall have the meaning specified in the
Indenture.

          "Successor Guarantee Trustee" means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Article IV
hereof.

          "Trust Agreement" has the meaning specified in the recitals hereto.

          "Trust Indenture Act" means the Trust Indenture Act of 1939 (15 U.S.C.
Sections 77aaa-77bbbb), as amended.

          "Trust Securities" means the Common Securities and the Capital
Securities.

                         ARTICLE II. TRUST INDENTURE ACT

     SECTION 2.1. Trust Indenture Act; Application.

          If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required under such Act to be a
part of and govern this Guarantee Agreement, the provision of the Trust
Indenture Act shall control. If any provision of this Guarantee Agreement
modifies or excludes any provision of the Trust Indenture Act that may be so
modified or excluded, the latter provision shall be deemed to apply to this
Guarantee Agreement as so modified or excluded, as the case may be.

     SECTION 2.2. List of Holders.

          (a) The Guarantor will furnish or cause to be furnished to the
Guarantee Trustee a list of Holders at the following times:

               (i) quarterly, not more than 15 days after the last day of
February, May, August and November, in each year, a list, in such form as the
Guarantee Trustee may reasonably

                                      -4-

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require, of the names and addresses of the Holders as of the last day of
February, May, August and November, as applicable; and

               (ii) at such other times as the Guarantee Trustee may request in
writing, within 30 days after the receipt by the Guarantor of any such request,
a list of similar form and content as of a date not more than 15 days prior to
the time such list is furnished.

          (b) The Guarantee Trustee shall comply with the requirements of
Section 312(b) of the Trust Indenture Act.

     SECTION 2.3. Reports by the Guarantee Trustee.

          Not later than January 31 of each year, commencing January 31, 2003,
the Guarantee Trustee shall provide to the Holders such reports, if any, as are
required by Section 313 of the Trust Indenture Act in the form and in the manner
provided by Section 313 of the Trust Indenture Act. If this Guarantee Agreement
shall have been qualified under the Trust Indenture Act, the Guarantee Trustee
shall also comply with the requirements of Section 313(d) of the Trust Indenture
Act.

     SECTION 2.4. Periodic Reports to the Guarantee Trustee.

          The Guarantor shall provide to the Guarantee Trustee and the Holders
such documents, reports and information, if any, as required by Section 314 of
the Trust Indenture Act and the compliance certificate required by Section 314
of the Trust Indenture Act, in the form, in the manner and at the times required
by Section 314 of the Trust Indenture Act, provided that such documents, reports
and information shall be required to be provided to the Securities and Exchange
Commission only if this Guarantee Agreement shall have been qualified under the
Trust Indenture Act.

     SECTION 2.5. Evidence of Compliance with Conditions Precedent.

     The Guarantor shall provide to the Guarantee Trustee such evidence of
compliance with such conditions precedent, if any, provided for in this
Guarantee Agreement that relate to any of the matters set forth in Section
314(c) of the Trust Indenture Act. Any certificate or opinion required to be
given by an officer pursuant to Section 314(c)(1) may be given in the form of an
Officers' Certificate.

     SECTION 2.6. Events of Default; Waiver.

     The Holders of a Majority in Liquidation Amount of the Capital Securities
may, by vote, on behalf of the Holders, waive any past Event of Default and its
consequences. Upon such waiver, any such Event of Default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been cured,
for every purpose of this Guarantee Agreement, but no such waiver shall extend
to any subsequent or other default or Event of Default or impair any right
consequent therefrom.

                                      -5-

<PAGE>

     SECTION 2.7. Event of Default; Notice.

     (a) The Guarantee Trustee shall, within 90 days after the occurrence of an
Event of Default, transmit by mail, first class postage prepaid, to the Holders,
notice of all Events of Default known to the Guarantee Trustee, unless such
Events of Default have been cured or waived before the giving of such notice;
provided that, except in the case of a default in the payment of a Guarantee
Payment, the Guarantee Trustee shall be protected in withholding such notice if
and so long as the Board of Directors, the executive committee or a trust
committee of directors and/or Responsible Officers of the Guarantee Trustee in
good faith determines that the withholding of such notice is in the interests of
the Holders.

     (b) The Guarantee Trustee shall not be deemed to have knowledge of any
Event of Default unless a Responsible Officer charged with the administration of
this Guarantee Agreement shall have received written notice of such Event of
Default.

     SECTION 2.8. Conflicting Interests.

     The Trust Agreement shall be deemed to be specifically described in this
Guarantee Agreement for the purposes of clause (i) of the first proviso
contained in Section 310(b) of the Trust Indenture Act.

         ARTICLE III. POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

     SECTION 3.1. Powers and Duties of the Guarantee Trustee.

     (a) This Guarantee Agreement shall be held by the Guarantee Trustee for the
benefit of the Holders, and the Guarantee Trustee shall not transfer this
Guarantee Agreement to any Person except a Holder exercising his or her rights
pursuant to Section 5.4(iv) or to a Successor Guarantee Trustee on acceptance by
such Successor Guarantee Trustee of its appointment to act as Successor
Guarantee Trustee hereunder. The right, title and interest of the Guarantee
Trustee, as such, hereunder shall automatically vest in any Successor Guarantee
Trustee, upon acceptance by such Successor Guarantee Trustee of its appointment
hereunder, and such vesting and cessation of title shall be effective whether or
not conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Guarantee Trustee.

     (b) If an Event of Default has occurred and is continuing, the Guarantee
Trustee shall enforce this Guarantee Agreement for the benefit of the Holders.

     (c) The Guarantee Trustee, before the occurrence of any Event of Default
and after the cure or waiver of all Events of Default that may have occurred,
shall be obligated to perform only such duties as are specifically set forth in
this Guarantee Agreement (including pursuant to Section 2.1), and no implied
covenants shall be read into this Guarantee Agreement against the Guarantee
Trustee. If an Event of Default has occurred (that has not been cured or waived
pursuant to Section 2.6), the Guarantee Trustee shall exercise such of the
rights and powers vested in it by this

                                      -6-

<PAGE>

Guarantee Agreement, and use the same degree of care and skill in its exercise
thereof, as a prudent person would exercise or use under the circumstances in
the conduct of his or her own affairs.

     (d) No provision of this Guarantee Agreement shall be construed to relieve
the Guarantee Trustee from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

          (i) Prior to the occurrence of any Event of Default and after the
curing or waiving of all such Events of Default that may have occurred:

               (A) the duties and obligations of the Guarantee Trustee shall be
determined solely by the express provisions of this Guarantee Agreement
(including pursuant to Section 2.1), and the Guarantee Trustee shall not be
liable except for the performance of such duties and obligations as are
specifically set forth in this Guarantee Agreement (including pursuant to
Section 2.1); and

               (B) in the absence of bad faith on the part of the Guarantee
Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Guarantee Trustee and conforming to
the requirements of this Guarantee Agreement; but in the case of any such
certificates or opinions that by any provision hereof or of the Trust Indenture
Act are specifically required to be furnished to the Guarantee Trustee, the
Guarantee Trustee shall be under a duty to examine the same to determine whether
or not they conform to the requirements of this Guarantee Agreement;

          (ii) The Guarantee Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer of the Guarantee Trustee,
unless it shall be proved that the Guarantee Trustee was negligent in
ascertaining the pertinent facts upon which such judgment was made;

          (iii) The Guarantee Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of not less than a Majority in Liquidation Amount of
the Capital Securities relating to the time, method and place of conducting any
proceeding for any remedy available to the Guarantee Trustee, or exercising any
trust or power conferred upon the Guarantee Trustee under this Guarantee
Agreement; and

          (iv) No provision of this Guarantee Agreement shall require the
Guarantee Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers if the Guarantee Trustee shall have reasonable
grounds for believing that the repayment of such funds or liability is not
assured to it under the terms of this Guarantee Agreement or adequate indemnity
against such risk or liability is not reasonably assured to it.

     SECTION 3.2. Certain Rights of Guarantee Trustee.

     (a) Subject to the provisions of Section 3.1:

                                      -7-

<PAGE>

          (i) The Guarantee Trustee may conclusively rely and shall be fully
protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document reasonably believed by it to be genuine and to have been signed, sent
or presented by the proper party or parties.

          (ii) Any direction or act of the Guarantor contemplated by this
Guarantee Agreement shall be sufficiently evidenced by an Officers' Certificate
unless otherwise prescribed herein.

          (iii) Whenever, in the administration of this Guarantee Agreement, the
Guarantee Trustee shall deem it desirable that a matter be proved or established
before taking, suffering or omitting to take any action hereunder, the Guarantee
Trustee (unless other evidence is herein specifically prescribed) may, in the
absence of bad faith on its part, request and conclusively rely upon an
Officers' Certificate which, upon receipt of such request from the Guarantee
Trustee, shall be promptly delivered by the Guarantor.

          (iv) The Guarantee Trustee may consult with legal counsel, and the
advice or written opinion of such legal counsel with respect to legal matters
shall be full and complete authorization and protection in respect of any action
taken, suffered or omitted to be taken by it hereunder in good faith and in
accordance with such advice or opinion. Such legal counsel may be legal counsel
to the Guarantor or any of its Affiliates and may be one of its employees. The
Guarantee Trustee shall have the right at any time to seek instructions
concerning the administration of this Guarantee Agreement from any court of
competent jurisdiction.

          (v) The Guarantee Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Guarantee Agreement at the request
or direction of any Holder, unless such Holder shall have provided to the
Guarantee Trustee such security and indemnity as would satisfy a reasonable
person in the position of the Guarantee Trustee, against the costs, expenses
(including attorneys' fees and expenses) and liabilities that might be incurred
by it in complying with such request or direction, including such reasonable
advances as may be requested by the Guarantee Trustee.

          (vi) The Guarantee Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Guarantee Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit.

          (vii) The Guarantee Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through its
agents or attorneys, and the Guarantee Trustee shall not be responsible for any
negligence or willful misconduct on the part of any such agent or attorney
appointed with due care by it hereunder.

          (viii) Whenever in the administration of this Guarantee Agreement the
Guarantee Trustee shall deem it desirable to receive instructions with respect
to enforcing any remedy or right or

                                      -8-

<PAGE>

taking any other action hereunder, the Guarantee Trustee (A) may request
instructions from the Holders, (B) may refrain from enforcing such remedy or
right or taking such other action until such instructions are received and (C)
shall be fully protected in acting in accordance with such instructions.

     (b) No provision of this Guarantee Agreement shall be deemed to impose any
duty or obligation on the Guarantee Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it in any
jurisdiction in which it shall be illegal, or in which the Guarantee Trustee
shall be unqualified or incompetent in accordance with applicable law, to
perform any such act or acts or to exercise any such right, power, duty or
obligation. No permissive power or authority available to the Guarantee Trustee
shall be construed to be a duty to act in accordance with such power and
authority.

     SECTION 3.3. Indemnity.

     The Guarantor agrees to indemnify the Guarantee Trustee (which for purposes
of this Section 3.3 shall include its officers, directors, employees and agents)
for, and to hold it harmless against, any loss, liability or expense incurred
without negligence, willful misconduct or bad faith on the part of the Guarantee
Trustee, arising out of or in connection with the acceptance or administration
of this Guarantee Agreement, including the costs and expenses of defending
itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. The Guarantee Trustee will
not claim or exact any lien or charge on any Guarantee Payments as a result of
any amount due to it under this Guarantee Agreement. The provisions of this
Section 3.3 shall survive the termination of this Guarantee Agreement or the
resignation or removal of the Guarantee Trustee.

     SECTION 3.4. Expenses.

     The Guarantor shall from time to time reimburse the Guarantee Trustee for
its expenses and costs (including reasonable attorneys' or agents' fees)
incurred in connection with the performance of its duties hereunder.

                          ARTICLE IV. GUARANTEE TRUSTEE

     SECTION 4.1. Guarantee Trustee; Eligibility.

     (a) There shall at all times be a Guarantee Trustee which shall:

          (i) not be an Affiliate of the Guarantor; and

          (ii) be a Person that is eligible pursuant to the Trust Indenture Act
to act as such and has a combined capital and surplus of at least $50,000,000,
and shall be a corporation meeting the requirements of Section 310(c) of the
Trust Indenture Act. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of the supervising or examining

                                      -9-

<PAGE>

authority, then, for the purposes of this Section and to the extent permitted by
the Trust Indenture Act, the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published.

     (b) If at any time the Guarantee Trustee shall cease to be eligible to so
act under Section 4.1(a), the Guarantee Trustee shall immediately resign in the
manner and with the effect set out in Section 4.2.

     (c) If the Guarantee Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Guarantee Trustee and Guarantor shall in all respects comply with the provisions
of Section 310(b) of the Trust Indenture Act.

     SECTION 4.2. Appointment, Removal and Resignation of the Guarantee Trustee.

          (a) No resignation or removal of the Guarantee Trustee and no
appointment of a Successor Guarantee Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the Successor Guarantee
Trustee by written instrument executed by the Successor Guarantee Trustee and
delivered to the Holders and the Guarantee Trustee.

          (b) Subject to the immediately preceding paragraph, a Guarantee
Trustee may resign at any time by giving written notice thereof to the Holders.
The Guarantee Trustee shall appoint a successor by requesting from at least
three Persons meeting the eligibility requirements such Persons' expenses and
charges to serve as the Guarantee Trustee, and selecting the Person who agrees
to the lowest expenses and charges. If the instrument of acceptance by the
Successor Guarantee Trustee shall not have been delivered to the Guarantee
Trustee within 30 days after the giving of such notice of resignation, the
Guarantee Trustee may petition, at the expense of the Guarantor, any court of
competent jurisdiction for the appointment of a Successor Guarantee Trustee.

          (c) The Guarantee Trustee may be removed for cause at any time by Act
(within the meaning of Section 6.8 of the Trust Agreement) of the Holders of at
least a Majority in Liquidation Amount of the Capital Securities, delivered to
the Guarantee Trustee.

          (d) If a resigning Guarantee Trustee shall fail to appoint a
successor, or if a Guarantee Trustee shall be removed or become incapable of
acting as Guarantee Trustee, or if any vacancy shall occur in the office of any
Guarantee Trustee for any cause, the Holders of the Capital Securities, by Act
of the Holders of record of not less than 25% in aggregate Liquidation Amount of
the Capital Securities then outstanding delivered to such Guarantee Trustee,
shall promptly appoint a successor Guarantee Trustee. If no Successor Guarantee
Trustee shall have been so appointed by the Holders of the Capital Securities
and such appointment accepted by the Successor Guarantee Trustee, any Holder, on
behalf of himself and all others similarly situated, may petition any court of
competent jurisdiction for the appointment of a Successor Guarantee Trustee.

                              ARTICLE V. GUARANTEE

                                      -10-

<PAGE>

     SECTION 5.1. Guarantee.

          The Guarantor irrevocably and unconditionally agrees to pay in full to
the Holders the Guarantee Payments (without duplication of amounts theretofore
paid by or on behalf of the Issuer Trust), as and when due, regardless of any
defense, right of set-off or counterclaim which the Issuer Trust may have or
assert, except the defense of payment. The Guarantor's obligation to make a
Guarantee Payment may be satisfied by direct payment of the required amounts by
the Guarantor to the Holders or by causing the Issuer Trust to pay such amounts
to the Holders. The Guarantor shall give prompt written notice to the Guarantee
Trustee in the event it makes any direct payment hereunder.

     SECTION 5.2. Waiver of Notice and Demand.

          The Guarantor hereby waives notice of acceptance of the Guarantee
Agreement and of any liability to which it applies or may apply, presentment,
demand for payment, any right to require a proceeding first against the
Guarantee Trustee, the Issuer Trust or any other Person before proceeding
against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice
of redemption and all other notices and demands.

     SECTION 5.3. Obligations Not Affected.

          The obligations, covenants, agreements and duties of the Guarantor
under this Guarantee Agreement shall in no way be affected or impaired by reason
of the happening from time to time of any of the following:

          (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer Trust of any express or implied
agreement, covenant, term or condition relating to the Capital Securities to be
performed or observed by the Issuer Trust;

          (b) the extension of time for the payment by the Issuer Trust of all
or any portion of the Distributions (other than an extension of time for payment
of Distributions that results from an election by the Depositor to defer any
interest payment on the Junior Subordinated Debentures as so provided in the
Indenture), Redemption Price, Liquidation Distribution or any other sums payable
under the terms of the Capital Securities or the extension of time for the
performance of any other obligation under, arising out of, or in connection
with, the Capital Securities;

          (c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Capital Securities, or any
action on the part of the Issuer Trust granting indulgence or extension of any
kind;

          (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, conservatorship, insolvency, bankruptcy, assignment
for the benefit of creditors,

                                      -11-

<PAGE>

reorganization, arrangement, composition or readjustment of debt of, or other
similar proceedings affecting, the Issuer Trust or any of the assets of the
Issuer Trust;

          (e) any invalidity of, or defect or deficiency in, the Capital
Securities;

          (f) the settlement or compromise of any obligation guaranteed hereby
or hereby incurred; or

          (g) any other circumstance whatsoever that might otherwise constitute
a legal or equitable discharge or defense of a guarantor (other than payment of
the underlying obligation), it being the intent of this Section 5.3 that the
obligations of the Guarantor hereunder shall be absolute and unconditional under
any and all circumstances.

          There shall be no obligation of the Holders to give notice to, or
obtain the consent of, the Guarantor with respect to the happening of any of the
foregoing.

     SECTION 5.4. Rights of Holders.

          The Guarantor expressly acknowledges that: (i) this Guarantee
Agreement will be deposited with the Guarantee Trustee to be held for the
benefit of the Holders; (ii) the Guarantee Trustee has the right to enforce this
Guarantee Agreement on behalf of the Holders; (iii) the Holders of a Majority in
Liquidation Amount of the Capital Securities have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Guarantee Trustee in respect of this Guarantee Agreement or exercising any trust
or power conferred upon the Guarantee Trustee under this Guarantee Agreement;
and (iv) any Holder may institute a legal proceeding directly against the
Guarantor to enforce its rights under this Guarantee Agreement, without first
instituting a legal proceeding against the Guarantee Trustee, the Issuer Trust
or any other Person.

     SECTION 5.5. Guarantee of Payment.

          This Guarantee Agreement creates a guarantee of payment and not of
collection. This Guarantee Agreement will not be discharged except by payment of
the Guarantee Payments in full (without duplication of amounts theretofore paid
by the Issuer Trust) or upon the distribution of Junior Subordinated Debentures
to Holders as provided in the Trust Agreement.

     SECTION 5.6. Subrogation.

          The Guarantor shall be subrogated to all rights (if any) of the
Holders against the Issuer Trust in respect of any amounts paid to the Holders
by the Guarantor under this Guarantee Agreement; provided, however, that the
Guarantor shall not (except to the extent required by mandatory provisions of
law) be entitled to enforce or exercise any rights which it may acquire by way
of subrogation or any indemnity, reimbursement or other agreement, in all cases
as a result of payment under this Guarantee Agreement, if at the time of any
such payment, any amounts are due and unpaid under this Guarantee Agreement. If
any amount shall be paid to the Guarantor in

                                      -12-

<PAGE>

violation of the preceding sentence, the Guarantor agrees to hold such amount in
trust for the Holders and to pay over such amount to the Holders.

     SECTION 5.7. Independent Obligations.

          The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer Trust with respect to the Capital
Securities and that the Guarantor shall be liable as principal and as debtor
hereunder to make Guarantee Payments pursuant to the terms of this Guarantee
Agreement notwithstanding the occurrence of any event referred to in subsections
(a) through (g), inclusive, of Section 5.3 hereof.

                     ARTICLE VI. COVENANTS AND SUBORDINATION

     SECTION 6.1. Subordination.

          This Guarantee Agreement will constitute an unsecured obligation of
the Guarantor and will rank subordinate and junior in right of payment to all
Senior Indebtedness (as defined in the Indenture) of the Guarantor to the same
extent and in the same manner set forth in the Indenture with respect to the
Junior Subordinated Debentures, and the provisions of Article XIII of the
Indenture will apply, mutatis mutandis, to the obligations of the Guarantor
hereunder. The obligations of the Guarantor hereunder do not constitute Senior
Indebtedness of the Guarantor.

     SECTION 6.2. Pari Passu Guarantees.

          The obligations of the Guarantor under this Guarantee Agreement shall
rank pari passu with any similar guarantee agreements issued by the Guarantor on
behalf of the holders of Trust Securities issued by the Issuer Trust and with
any other security, guarantee or other obligation that is expressly stated to
rank pari passu with the obligations of the Guarantor under this Guarantee
Agreement.

                            ARTICLE VII. TERMINATION

     SECTION 7.1. Termination.

          This Guarantee Agreement shall terminate and be of no further force
and effect upon (i) full payment of the Redemption Price of all Outstanding
Capital Securities, (ii) the distribution of Junior Subordinated Debentures to
the Holders in exchange for all of the Outstanding Capital Securities or (iii)
full payment of the amounts payable in accordance with Article IX of the Trust
Agreement upon liquidation of the Issuer Trust. Notwithstanding the foregoing,
this Guarantee Agreement will continue to be effective or will be reinstated, as
the case may be, if at any time any Holder is required to restore payment of any
sums paid under the Capital Securities or this Guarantee Agreement.

                          ARTICLE VIII. MISCELLANEOUS

                                      -13-

<PAGE>

     SECTION 8.1. Successors and Assigns.

          All guarantees and agreements contained in this Guarantee Agreement
shall bind the successors, assigns, receivers, conservators, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Capital Securities then outstanding. Except in connection with a
consolidation, merger or sale involving the Guarantor that is permitted under
Article VIII of the Indenture and pursuant to which the assignee agrees in
writing to perform the Guarantor's obligations hereunder, the Guarantor shall
not assign its obligations hereunder, and any purported assignment that is not
in accordance with these provisions shall be void.

     SECTION 8.2. Amendments.

          Except with respect to any changes that do not materially adversely
affect the rights of the Holders (in which case no consent of the Holders will
be required), this Guarantee Agreement may only be amended with the prior
approval of the Holders of not less than a Majority in Liquidation Amount of the
Capital Securities. The provisions of Article VI of the Trust Agreement
concerning meetings of the Holders shall apply to the giving of such approval.

     SECTION 8.3. Notices.

          Any notice, request or other communication required or permitted to be
given hereunder shall be in writing, duly signed by the party giving such
notice, and delivered, telecopied (confirmed by delivery of the original) or
mailed by first class mail as follows:

          (a) if given to the Guarantor, to the address or telecopy number set
forth below or such other address or telecopy number or to the attention of such
other Person as the Guarantor may give notice to the Holders:

          CCF Holding Company
          101 North Main Street
          Jonesboro, Georgia 30236-3294
          Facsimile No.: (770) 478-7597
          Attention: Leonard A. Moreland

          (b) if given to the Issuer Trust, in care of the Guarantee Trustee, at
the Issuer Trust's (and the Guarantee Trustee's) address set forth below or such
other address or telecopy number or to the attention of such other Person as the
Guarantee Trustee on behalf of the Issuer Trust may give notice to the Holders:

          CCF Capital Trust I
          101 North Main Street
          Jonesboro, Georgia 30236-3294

                                      -14-

<PAGE>

          Facsimile No.: (770) 478-7597
          Attention: Leonard A. Moreland

          with a copy to:

          Wilmington Trust Company
          1100 North Market Street
          Wilmington, Delaware 19890-0001
          Facsimile No.: (302) 636-4140
          Attention: Corporate Trust Administration
     (c)  if given to the Guarantee Trustee:

          Wilmington Trust Company
          1100 North Market Street
          Wilmington, Delaware 19890-0001
          Facsimile No.: (302) 636-4140
          Attention: Corporate Trust Administration

          (d) if given to any Holder of record, at the address set forth on the
books and records of the Issuer Trust.

          All notices hereunder shall be deemed to have been given when received
in person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver.

     SECTION 8.4. Benefit.

          This Guarantee Agreement is solely for the benefit of the Holders and
is not separately transferable from the Capital Securities.

     SECTION 8.5. Interpretation.

          In this Guarantee Agreement, unless the context otherwise requires:

          (a) capitalized terms used in this Guarantee Agreement but not defined
in the preamble hereto have the respective meanings assigned to them in Section
1.1;

          (b) a term defined anywhere in this Guarantee Agreement has the same
meaning throughout;

                                      -15-

<PAGE>

          (c) all references to "the Guarantee Agreement" or "this Guarantee
Agreement" are to this Guarantee Agreement as modified, supplemented or amended
from time to time;

          (d) all references in this Guarantee Agreement to Articles and
Sections are to Articles and Sections of this Guarantee Agreement unless
otherwise specified;

          (e) a term defined in the Trust Indenture Act has the same meaning
when used in this Guarantee Agreement unless otherwise defined in this Guarantee
Agreement or unless the context otherwise requires;

          (f) a reference to the singular includes the plural and vice versa;
and

          (g) the masculine, feminine or neuter genders used herein shall
include the masculine, feminine and neuter genders.

     SECTION 8.6. Governing Law.

          THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

     SECTION 8.7. Counterparts.

          This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

                            [Signatures on Next Page]

                                      -16-

<PAGE>

          THIS GUARANTEE AGREEMENT is executed as of the day and year first
above written.

                      CCF HOLDING COMPANY,  as Guarantor

                      By: /s/ Leonard A. Moreland
                         -------------------------------------------------------
                      Name:  Leonard A. Moreland
                      Title: Executive Vice President

                      WILMINGTON TRUST COMPANY,
                      as Guarantee Trustee, and not in its individual capacity

                      By: /s/ Patricia A. Evans
                         -------------------------------------------------------
                      Name:  Patricia A. Evans
                      Title: Senior Financial Services Officer

                                      -17-<PAGE>

                                                                    Exhibit 10.1

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of January 1,
2000, is by and between Pemco Aviation Group, Inc., a Delaware corporation (the
"Company"), and Ronald A. Aramini ("Executive").

                                    RECITALS

     WHEREAS, pursuant to that certain Employment Agreement dated January 1,
2000 (the "Original Agreement"), the Company has employed Executive as its
President and Chief Executive Officer;

     WHEREAS, the Company and Executive have agreed to amend the Original
Agreement to reflect recent discussions between the parties and to more
specifically address certain issues that have arisen since, or that may have
been unclear in, the Original Agreement;

     WHEREAS, the Company understands that a potential change of control or
ownership of the Company will present significant concerns for Executive with
respect to his financial and job security;

     WHEREAS, the Company desires to assure itself of Executive's services
during any period in which it is confronting such a situation and to provide
Executive with certain financial assurances to enable Executive to perform the
responsibilities of his position without undue distraction and to exercise his
judgment without bias due to his personal circumstances; and

     WHEREAS, to achieve these objectives, the Company and Executive desire to
enter into this Amended and Restated Employment Agreement providing, among other
things, the Company and Executive with certain rights and obligations upon the
occurrence of a change of control.

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants set forth below, the parties hereby agree as follows:

     1. Employment. The Company hereby agrees to employ Executive as President
        ----------
and Chief Executive Officer, and Executive hereby accepts such employment, on
the terms and conditions hereinafter set forth.

     2. Term. The period of employment of Executive by the Company hereunder
        ----
(the "Employment Period") shall commence on January 1, 2000 and shall terminate
on December 31, 2005, unless extended in writing by the parties. The Employment
Period may be sooner terminated by either party in accordance with Section 6 of
this Agreement.

                                       1

<PAGE>

     3. Position and Duties. During the Employment Period, Executive shall serve
        -------------------
as President and Chief Executive Officer of the Company. Executive shall have
those powers and duties normally associated with the position of President and
Chief Executive Officer and such other powers and duties as may be prescribed by
the Board of Directors of the Company (the "Board").

     4. Outside Business Activities Precluded. During the Employment Period,
        -------------------------------------
Executive shall devote his full energies, interest, abilities and productive
time to the performance of this Agreement. Executive shall not, without the
prior written consent of the Company, perform other competitive services of any
kind or engage in any other business activity, with or without compensation.
Executive shall not, without the prior written consent of the Company, engage in
any activity adverse to the Company's interests. Nothing contained herein is
intended to prohibit Executive from spending a reasonable amount of time
managing his personal investments and discharging his civic responsibilities and
other permitted activities as long as such activities do not interfere with his
duties and obligations under this Agreement.

     5. Compensation and Related Matters.
        --------------------------------

     (a) Salary. The Company shall pay Executive an annual base salary of
$250,000 ("Base Salary") during each calendar year of the Employment Period,
prorated for any year in which this Agreement is in effect for only a portion of
the calendar year. Executive's Base Salary shall be payable in approximately
equal installments in accordance with the Company's customary payroll practices.
Executive's Base Salary shall be reviewed by the Company from time to time at
its discretion, and Executive shall receive such salary increases, if any, as
the Company, in its sole discretion, shall determine. If Executive's Base Salary
is increased by the Company, such increased Base Salary shall then constitute
the Base Salary for all purposes of this Agreement.

     (b) Bonus. The Board's compensation committee (the "Compensation
Committee") shall maintain an executive bonus pool which will permit Executive
to earn a cash bonus each year of his Employment Period, based on a target bonus
equal to at least 100% of his Base Salary and based upon the operating profits
of the Company and the performance of Executive. The amount of Executive's cash
bonus shall be determined in the sole discretion of the Compensation Committee
and shall be dependent upon, among other things, the achievement of performance
targets established by the Compensation Committee from time to time. The
Compensation Committee has established an executive bonus program for the fiscal
year 2001, a copy of which is attached hereto as Exhibit A, which sets forth a
                                                 ---------
target bonus for Executive and allows Executive to earn up to 175% of said
target bonus (depending upon the financial performance of the Company).

     (c) Stock Options. As of January 1, 2000, the Company granted to Executive
stock options to purchase 100,000 shares of the Company's common stock at an
exercise price equal to the fair market value per share of the common stock on
the date of issuance. Such options have and will continue to vest on the
following schedule: 20% vested immediately upon grant and the remainder shall
vest at the rate of 20% per year over four years, beginning January 1, 2001 and

                                       2

<PAGE>

continuing until January 1, 2004. Such options are evidenced by a stock option
agreement between the Company and Executive, a copy of which is attached hereto
as Exhibit B. Further, on March 4, 2002, the Board of Directors of the Company
   ---------
granted to Executive an additional stock option to purchase 20,000 shares of the
Company's common stock at an exercise price equal to the fair market value per
share of the Company's common stock on that date ($16.49), which options shall
vest on January 1, 2005; said additional options shall be evidenced by a stock
option agreement in a form that is substantially similar to Exhibit B attached
                                                            ---------
hereto.

     (d) Expenses. The Company shall promptly reimburse Executive for all
reasonable business expenses upon the presentation of reasonably itemized
statements of such expenses in accordance with the Company's policies and
procedures now in force or as such policies and procedures may be modified with
respect to all executive officers of the Company.

     (e) Vacation. Executive shall be entitled to the number of weeks of
vacation per year provided to the Company's executive officers under the
Company's executive vacation policy; provided, however, that Executive's
vacation shall not be less than three weeks per calendar year.

     (f) Pension, Incentive Benefit Plans, and Medical Insurance. During the
Employment Period, Executive (and his spouse and dependents to the extent
provided therein) shall be entitled to participate in and be covered under all
welfare benefit plans or programs maintained by the Company from time to time
for the benefit of its executive officers including, without limitation, all
medical, dental, vision, life insurance and long-term disability plans and
programs. In addition, during the Employment Period, Executive shall be eligible
to participate in all pension, retirement, 401(k) and other employee benefit
plans and programs maintained from time to time by the Company for the benefit
of its executive officers, including, but not limited to, the Executive Deferred
Compensation Agreement (as defined below).

     Notwithstanding any provision(s) of this Agreement to the contrary, (1) if
the Company terminates Executive's employment hereunder pursuant to Section 6(b)
due to his Disability or terminates Executive's employment hereunder pursuant to
Section 6(c) without Cause, (2) if Executive terminates his employment hereunder
for Good Reason (as defined in Section 21), or (3) if Executive's employment
hereunder continues until December 31, 2005, the Company shall be obligated, on
and/or after the applicable Date of Termination under Section 7(b), to
continuously provide (with no break(s) in coverage) medical, dental and vision
coverage under the Company's medical, dental and vision insurance plans and
programs as in effect from time to time with respect to group(s) of the
Company's non-bargaining unit active employees (the "Salaried Group Insurance
Coverage") for Executive and his spouse for the remainder of their respective
lives; provided, however, that to the extent that Executive and his spouse on
       -----------------
and/or after such Date of Termination are ineligible for such Salaried Group
Insurance Coverage, the Company shall be obligated to continuously provide (with
no break(s) in coverage) medical, dental and vision coverage under the Company's
medical, dental and vision insurance plans and programs as in effect from time
to time with respect to group(s) of the Company's bargaining unit active
employees (the "Hourly Group Insurance Coverage") for Executive and his spouse
for the remainder of their respective lives. Notwithstanding the foregoing
provisions of this Section 5(f) and to the extent that Executive and his spouse,
on and/or after the applicable Date of

                                       3

<PAGE>

Termination, are ineligible for Salaried Group Insurance Coverage and/or Hourly
Group Insurance Coverage, the Company shall obtain and continuously maintain
(with no break(s) in coverage) medical, dental and vision insurance coverage for
Executive and his spouse for the remainder of their respective lives through
policy(ies) issued by an insurance company (the "Individual Insurance Coverage")
that will provide medical, dental and vision benefits to Executive and his
spouse that are comparable to such benefits provided under the Salaried Group
Insurance Coverage (or, in the absence of any such Salaried Group Insurance
Coverage, such benefits provided under the Hourly Group Insurance Coverage). The
Salaried Group Insurance Coverage, Hourly Group Insurance Coverage, and/or
Individual Insurance Coverage shall be provided at no cost to Executive and/or
his spouse, except to the extent that (x) the monthly costs of such Salaried
Group Insurance Coverage, Hourly Group Insurance Coverage and/or Individual
Insurance Coverage after the applicable Date of Termination exceed (y) the
actual monthly costs to the Company of providing Salaried Group Insurance
Coverage to Executive and his spouse immediately prior to Executive's applicable
Date of Termination (the "Pre-Termination Salaried Group Insurance Coverage
Costs") (such increases in monthly Group Insurance Coverage costs are
hereinafter referred to as the "Difference"), in which case Executive shall pay
fifty percent (50%) of the Difference, but in any event Executive's obligation
to reimburse the Company for post-termination costs of Salaried Group Insurance
Coverage, Hourly Group Insurance Coverage and/or Individual Insurance Coverage
shall never exceed 50% of the Pre-Termination Salaried Group Insurance Coverage
Costs.

     (g) Life Insurance. During the Employment Period and thereafter as provided
herein, the Company shall maintain a policy of insurance on Executive's life in
the face amount of Four Hundred Thousand Dollars ($400,000) comparable at all
times in term and scope with the policy described in Schedule 5(g) attached
                                                     -------------
hereto, of which policy the Executive will be the owner. All of the premiums on
such policy shall be paid by the Company during the Executive's employment
hereunder.

     (h) Automobile Allowance. During the Employment Period, Executive shall be
entitled to an automobile allowance not to exceed $1,000 per month. The amount
of the allowance shall cover all expenses related to the maintenance of a
business use automobile, including maintenance, depreciation, insurance and
business-related mileage.

                                       4

<PAGE>

     (i) Housing Allowance. During the Employment Period, Executive shall be
         -----------------
entitled to a housing allowance equal to a minimum of $8,000 per calendar
quarter (the "Housing Allowance"), which amount shall be reviewed annually by
the Company's Board of Directors to determine the adequacy of such amount for
the next calendar year of Executive's Employment Period. For purposes of
determining Executive's compensation upon termination as provided in Section 8
hereof, Executive's "Base Salary" shall mean and include the annual base salary
as determined pursuant to Section 5(a) hereof, plus the amount of Executive's
Housing Allowance for the 12-month period ending on the Date of Termination
under Section 7(b).

     6. Termination. Executive's employment hereunder may be terminated during
        -----------
the Employment Period under the following circumstances:

     (a) Death. Executive's employment hereunder shall terminate upon his death.

     (b) Disability. The Company shall have the right to terminate Executive's
employment hereunder upon his Disability.

     (c) With or Without Cause. The Company shall have the right to terminate
Executive's employment hereunder at any time with or without Cause. For purposes
of this Agreement, the Company shall have "Cause" to terminate Executive's
employment if, in the good faith judgment of the Company, it is determined that
Executive:

          (i) has engaged in willful misconduct, or breach of fiduciary duty
     involving personal profit;

          (ii) has engaged in willful or repeated failure to substantially
     perform his duties or obligations hereunder (other than due to physical or
     mental impairment);

          (iii) has been convicted of, or has plead guilty or nolo contendere
     to, a felony; or

          (iv) has engaged in a material breach of any of the covenants set
     forth in Sections 9(a) or (c).

     (d) Voluntary. Executive shall have the right to terminate his employment
hereunder at any time by providing the Company with a Notice of Termination.

     7. Termination Procedure.
        ---------------------

     (a) Notice of Termination. Any termination of Executive's employment by the
Company or by Executive during the Employment Period (other than termination
pursuant to Section 6(a)) shall be communicated by written Notice of Termination
to the other party hereto in accordance with Section 11. For purposes of this
Agreement, a "Notice of Termination" shall mean a notice which shall indicate
the specific termination provision in this Agreement relied upon and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of Executive's employment under the provision so
indicated.

                                       5

<PAGE>

     (b) Date of Termination. "Date of Termination" shall mean (i) if
Executive's employment is terminated by his death, the date of his death, (ii)
if Executive's employment is terminated pursuant to Section 6(b) or 6(c),
immediately upon delivery of a Notice of Termination to Executive (unless a
later date is set forth in the Notice of Termination), and (iii) if Executive's
employment is terminated pursuant to Section 6(d), ninety (90) days following
the delivery of a Notice of Termination to the Company; provided that, in the
case of this clause (iii), the Company may determine upon receipt of the Notice
of Termination that Executive's Date of Termination shall be immediate or some
time prior to the expiration of the ninety-day notice period.

     8. Compensation Upon Termination. In the event Executive's employment
        -----------------------------
terminates during the Employment Period, the Company shall provide Executive
with the payments and benefits set forth below. Executive acknowledges and
agrees that the payments set forth in this Section 8 constitute liquidated
damages for termination of his employment during the Employment Period.

     (a) Death. If Executive's employment is terminated by his death:

          (i) the Company shall pay to Executive's beneficiary, legal
     representative or estate, as the case may be, the aggregate of (1) a Pro
     Rata share of the Bonus Opportunity, (2) Executive's Base Salary through
     the Date of Termination, and (3) accrued vacation through the Date of
     Termination, which amount shall be payable as soon as practicable following
     the Date of Termination, but in any event not later than sixty (60) days
     thereafter;

          (ii) the Company shall reimburse Executive's beneficiary, legal
     representative or estate, as the case may be, pursuant to Section 5(d) for
     reasonable expenses incurred, but not paid prior to such termination of
     employment; and

          (iii) Executive's beneficiary, legal representative or estate, as the
     case may be, shall be entitled to any other rights, compensation and/or
     benefits as may be due to any such persons or estate in accordance with the
     terms and provisions of any agreements, plans or programs of the Company,
     including, but not limited to, the Executive Deferred Compensation
     Agreement (as defined below).

     (b) Disability. If Executive's employment is terminated for Disability
pursuant to Section 6(b):

          (i) the Company shall pay to Executive the aggregate of (1) a Pro Rata
     share of the Bonus Opportunity, (2) Executive's Base Salary through the
     Date of Termination, and (3) accrued vacation through the Date of
     Termination, which amount shall be payable as soon as practicable following
     the Date of Termination, but in any event not later than sixty (60) days
     thereafter;

                                       6

<PAGE>

          (ii) the Company shall reimburse Executive pursuant to Section 5(d)
     for reasonable expenses incurred, but not paid prior to such termination of
     employment; and

          (iii) Executive shall be entitled to any other rights, compensation
     and/or benefits as may be due to Executive in accordance with the terms and
     provisions of any agreements, plans or programs of the Company, including,
     but not limited to, the Executive Deferred Compensation Agreement (as
     defined below).

     (c) Without Cause. If Executive's employment is terminated by the Company
without Cause:

          (i) the Company shall:

               (1) continue paying Executive his Base Salary in accordance with
          the Company's customary payroll practices through the earlier of (A)
          twenty-four (24) months following the Date of Termination or (B)
          December 31, 2005; provided, however, in no event shall the Company
                             --------  -------
          continue paying Executive his Base Salary for less than twelve (12)
          months following the Date of Termination; provided, further, that the
                                                    --------  -------
          Company's obligation to continue such payments shall cease on the
          earlier of (I) the date, if any, on which Executive becomes employed
          by a subsequent employer and is eligible to receive substantially
          similar compensation from such subsequent employer (but Executive
          shall not be required to seek other employment), or (II) the date
          Executive materially breaches the covenants set forth in Section 9(a)
          or (c); and

               (2) pay to Executive the aggregate of (Y) a Pro Rata share of the
          Bonus Opportunity, and (Z) accrued vacation through the Date of
          Termination, which aggregate amount shall be payable as soon as
          practicable following the Date of Termination, but in any event not
          later than sixty (60) days thereafter;

          (ii) to the extent permitted by applicable law, the Company shall
     maintain in full force and effect, for the continued benefit of Executive,
     his spouse and his dependents (as applicable) through the earlier of (A)
     twenty-four (24) months following the Date of Termination or (B) December
     31, 2005, the life insurance plans and programs in which Executive, his
     spouse and his dependents (as applicable) were participating immediately
     prior to the Date of Termination at the level in effect and upon
     substantially the same terms and conditions (including without limitation
     contributions required by Executive for such benefits) as existed
     immediately prior to the Date of Termination; provided, however, in no
                                                   --------  -------
     event shall the Company continue such benefits on behalf of Executive for
     less than twelve (12) months following the Date of Termination; provided,
                                                                     --------
     further, that the Company's obligations to continue such benefits shall
     -------
     cease upon the earlier of (I) the date the date Executive materially
     breaches the covenants set forth in Section 9(a) or (c), or (II) the date
     or dates on which Executive becomes employed by a

                                       7

<PAGE>

     subsequent employer and is eligible to receive coverage and benefits from
     such subsequent employer (such coverage and benefits to be determined on a
     coverage-by-coverage, or benefit-by-benefit, basis); provided, further,
                                                          --------  -------
     that Executive shall not be required to seek other employment or benefits;

          (iii) the Company shall reimburse Executive pursuant to Section 5(d)
     for reasonable expenses incurred, but not paid, prior to such termination
     of employment;

          (iv) Executive shall be entitled to any other rights, compensation
     and/or benefits as may be due to Executive in accordance with the terms and
     provisions of any agreements, plans or programs of the Company, including,
     but not limited to, the Executive Deferred Compensation Agreement (as
     defined below); and

          (v) any unvested stock options held by Executive shall immediately
     vest and Executive shall be entitled to exercise the stock options pursuant
     to the terms and conditions of any Company agreement or plan then in
     effect; provided that Executive has not materially breached any of the
     covenants set forth in Sections 9(a) or (c), Executive shall be entitled to
     exercise such options for at least one (1) year following the Date of
     Termination.

          (vi) This Section 8(c) shall not apply if the Company terminates
     Executive's employment without Cause during the Window Period (as defined
     below). In the event that such termination is during the Window Period, the
     terms of Section 8(e) shall govern the parties' rights and obligations
     hereunder.

     (d) Cause; Voluntary. If Executive's employment is terminated by the
Company for Cause pursuant to Section 6(c) or by Executive for any reason:

          (i) the Company shall pay Executive his Base Salary and, to the extent
     required by applicable law, his accrued vacation pay through the Date of
     Termination, as soon as practicable following the Date of Termination;

          (ii) the Company shall reimburse Executive pursuant to Section 5(d)
     for reasonable expenses incurred, but not paid prior to such termination of
     employment, unless such termination resulted from a misappropriation of
     Company funds; and

          (iii) Executive shall be entitled to any other rights, compensation
     and/or benefits as may be due to Executive in accordance with the terms and
     provisions of any agreements, plans or programs of the Company, including,
     but not limited to, the Executive Deferred Compensation Agreement (as
     defined below).

          (iv) This Section 8(d) shall not apply if Executive terminates his
     employment for Good Reason during the Window Period (as defined below). In
     such an event, the terms of Section 8(e) shall govern the parties' rights
     and obligations hereunder.

                                       8

<PAGE>

     (e) Window Period after a Change of Control. If, during the Window Period,
(1) the Company initiates the procedure to terminate Executive's employment
without Cause, or (2) if Executive initiates the procedure to terminate his
employment for Good Reason (as defined below):

          (i) the Company shall pay to Executive the aggregate of: (1)
     Executive's Base Salary through the Date of Termination, (2) accrued
     vacation through the Date of Termination and (3) a Pro Rata Share of the
     Bonus Opportunity;

          (ii) in addition, the Company shall make a cash payment equal to two
     (2) times the sum of: (1) Executive's annual Base Salary; and (2) the
     greater of (A) the bonus amount paid or payable (including any amounts
     payable under the bonus plan referenced in Section 5(b) hereof) to
     Executive for the fiscal year of the Company immediately preceding the
     Change of Control Date (provided, however, that the average of such bonus
     amounts for the two (2) fiscal years of the Company immediately preceding
     the Change of Control Date shall be used if available) or (B) the bonus
     amount paid or payable to the Executive for the fiscal year of the Company
     ending immediately prior to the Date of Termination (provided, however,
     that the average of such bonus amounts for the two (2) fiscal years of the
     Company ending immediately prior to the Date of Termination shall be used
     if available);

          (iii) to the extent permitted by applicable law, the Company shall
     maintain in full force and effect, for the continued benefit of Executive,
     his spouse and his dependents (as applicable) through the earlier of (A)
     twenty-four (24) months following the Date of Termination or (B) December
     31, 2005, the life insurance plans and programs in which Executive, his
     spouse and his dependents (as applicable) were participating immediately
     prior to the Date of Termination at the level in effect and upon
     substantially the same terms and conditions (including without limitation
     contributions required by Executive for such benefits) as existed
     immediately prior to the Date of Termination; provided, however, in no
                                                   --------  -------
     event shall the Company continue such benefits on behalf of Executive for
     less than twelve (12) months following the Date of Termination; provided,
                                                                     --------
     further, that the Company's obligations to continue such benefits shall
     -------
     cease upon the date or dates on which Executive becomes employed by a
     subsequent employer and is eligible to receive coverage and benefits from
     such subsequent employer (such coverage and benefits to be determined on a
     coverage-by-coverage, or benefit-by-benefit, basis); provided, further,
                                                          --------  -------
     that Executive shall not be required to seek other employment or benefits;

          (iv) the Company shall reimburse Executive pursuant to Section 5(d)
     for reasonable expenses incurred, but not paid, prior to such termination
     of employment;

          (v) Executive shall be entitled to any other rights, compensation,
     and/or benefits as may be due to Executive in accordance with the terms and
     provisions of any agreements, plans or programs of the Company, including,
     but not limited to, the Executive Deferred Compensation Agreement (as
     defined below);

                                       9

<PAGE>

          (vi) any unvested stock options held by Executive shall immediately
     vest and Executive shall be entitled to exercise the stock options pursuant
     to the terms and conditions of any Company agreement or plan then in
     effect; provided, however, that Executive in all cases shall be entitled to
     exercise such options for at least one (1) year following the Date of
     Termination;

          (vii) all amounts payable to Executive by the Company pursuant to this
     Section 8(e) shall be paid in cash in a single lump sum as soon as
     practicable, but in no event more than ten (10) business days (or at such
     earlier or later date required by law), following the Date of Termination;
     and

          (viii) The foregoing notwithstanding, the total of the severance
     payments payable under this Section 8(c) shall be reduced to the extent
     (but only to the extent) that the payment of such total severance payments
     (as determined in good faith by the Company's certified public accountants)
     would constitute an "excess parachute payment" under Section 280G of the
     Internal Revenue Code of 1986, as amended. For the purpose of determining
     whether such total severance payments would constitute an "excess parachute
     payment" under Code Section 280G, the "base amount" computed under Code
     Section 280G shall be allocated to the total severance payments (the
     portion of the base amount so allocated shall be an amount which bears the
     same ratio to the base amount as the present value of such total severance
     payments bears to the aggregate present value of all "parachute payments"
     under Code Section 280G).

     9. Confidential Information; Ownership of Documents; Non-Competition.
        -----------------------------------------------------------------

     (a) Confidential Information. Executive shall hold in a fiduciary capacity
for the benefit of the Company all trade secrets and confidential information,
knowledge or data relating to the Company and its businesses and investments,
which shall have been obtained by Executive during Executive's employment by the
Company and which is not generally available public knowledge (other than by
acts of Executive in violation of this Agreement). Except as may be required or
appropriate in connection with carrying out his duties under this Agreement,
Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law, or as is necessary in connection with any
adversarial proceeding against the Company (in which case Executive shall use
his reasonable best efforts in cooperating with the Company in obtaining a
protective order against disclosure by a court of competent jurisdiction),
communicate or divulge any such trade secrets, information, knowledge or data to
anyone other than the Company and those designated by the Company or on behalf
of the Company in the furtherance of its business or to perform duties
hereunder. The obligations in this Section 9(a) shall only apply during the
Employment Period and until the second (2nd) anniversary of the Executive's Date
of Termination.

     (b) Removal of Documents; Rights to Products. All records, filings,
drawings, documents, models, equipment, and the like relating to the Company's
business which Executive has control over shall not be removed from the
Company's premises without its written consent,

                                       10

<PAGE>

unless such removal is in the furtherance of the Company's business or is in
connection with Executive's carrying out his duties under this Agreement and, if
so removed, shall be returned to the Company promptly after termination of
Executive's employment hereunder, or otherwise promptly after removal if such
removal occurs following termination of employment. Executive shall assign to
the Company all rights to trade secrets and other products relating to the
Company's business developed by him alone or in conjunction with others at any
time while employed by the Company.

     (c) Protection of Business. During the Employment Period and until the
second anniversary of Executive's Date of Termination (but only in the event
Executive is terminated by the Company for Cause or Executive terminates his
employment without Good Reason), Executive shall not (i) engage, anywhere within
the geographical areas in which the Company or any of its affiliates (the
"Designated Entities") are conducting their business operations or providing
services as of the Date of Termination, in any business which is being engaged
in by the Designated Entities as of the Date of Termination, directly or
indirectly, alone, in association with or as a shareholder, principal, agent,
partner, officer, director, employee or consultant of any other organization,
(ii) divert to any entity which is engaged in any business conducted by the
Designated Entities in the same geographic area as the Designated Entities, any
customer of any of the Designated Entities, or (iii) solicit any officer,
employee or consultant of any of the Designated Entities to leave the employ of
any of the Designated Entities. If, at any time, the provisions of this Section
9(c) shall be determined to be invalid or unenforceable, by reason of being
vague or unreasonable as to area, duration or scope of activity, this Section
9(c) shall be considered divisible and shall become and be immediately amended
to only such area, duration and scope of activity as shall be determined to be
reasonable and enforceable by the court or other body having jurisdiction over
the matter; and Executive agrees that this Section 9(c) as so amended shall be
valid and binding as though any invalid or unenforceable provision had not been
included herein.

     (d) Injunctive Relief. In the event of a breach or threatened breach of
this Section 9, Executive agrees that the Company shall be entitled to seek
injunctive relief in a court of appropriate jurisdiction to remedy any such
breach or threatened breach, Executive acknowledging that damages would be
inadequate and insufficient. If the Company's attempt to secure such an
injunction is not successful, the Company shall pay or reimburse all reasonable
attorneys' fees and other expenses and other costs incurred by Executive in
connection with such attempt. `

     (e) Continuing Operation. Except as specifically provided in this Section
9, the termination of Executive's employment or of this Agreement shall have no
effect on the continuing operation of this Section 9.

     10. Successors; Binding Agreement.
         -----------------------------

     (a) This Agreement may and shall be assigned or transferred to, and shall
be binding upon and shall inure to the benefit of, any successor of the Company,
and any such successor shall be deemed substituted for all purposes of the
"Company" under the terms of this

                                       11

<PAGE>

Agreement. As used in this Agreement, the term "successor" shall mean any
person, firm, corporation or business entity which at any time, whether by
merger, purchase or otherwise, acquires all or substantially all of the assets
or the business of the Company. Notwithstanding such assignment, the Company
shall remain, with such successor, jointly and severally liable for all its
obligations hereunder. Failure of the Company to obtain the agreement of any
successor to be bound, directly or indirectly, by the terms of this Agreement
prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall immediately entitle Executive, at his sole option and
election, to compensation from the Company in the same amount and on the same
terms as Executive would be entitled in the event of a termination of employment
without Cause. Except as herein provided, this Agreement may not otherwise be
assigned by the Company (other than to a subsidiary or affiliate) without the
prior written consent of Executive.

     (b) The services to be provided by Executive to the Company hereunder are
personal to Executive, and Executive's duties may not be assigned by Executive;
provided, however that this Agreement shall inure to the benefit of and be
enforceable by Executive's personal or legal representatives, executors, and
administrators, successors, heirs, distributees, devisees and legatees. If
Executive dies while any amounts payable to Executive hereunder remain
outstanding, all such amounts, unless otherwise provided herein, shall be paid
in accordance with the terms of this Agreement to Executive's devisee, legatee
or other designee or, in the absence of such designee, to Executive's estate.

     11. Notice. All notices or other communications which are required or
         ------
permitted hereunder shall be in writing and sufficient if delivered personally,
or sent by nationally-recognized, overnight courier or by registered or
certified mail, return receipt requested and postage prepaid, addressed as
follows:

     If to Executive:      Ronald A. Aramini
                           3014 River Brook Lane
                           Birmingham, Alabama 35242
                           Facsimile:  (205) 408-4375

     If to the Company:    Pemco Aviation Group, Inc.
                           1943 North 50th Street
                           Birmingham, Alabama  35212
                           Attn:  Chairman of the Board
                           Facsimile:  (205) 595-6631

or to such other address as any party may have furnished to the other in writing
in accordance herewith. All such notices and other communications shall be
deemed to have been received (a) in the case of personal delivery, on the date
of such delivery, (b) in the case of a telecopy, when the party receiving such
telecopy shall have confirmed receipt of the communication, (c) in the case of
delivery by nationally-recognized, overnight courier, on the business day
following dispatch and (d) in the case of mailing, on the third business day
following such mailing.

                                       12

<PAGE>

     12. Miscellaneous. No provisions of this Agreement may be amended, modified
         -------------
or waived unless such amendment or modification is agreed to in writing signed
by Executive and by a duly authorized officer of the Company, and such waiver is
set forth in writing and signed by the party to be charged. No waiver by either
party hereto at any time of any breach by the other party hereto of any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not set forth expressly in this
Agreement. The respective rights and obligations of the parties hereunder of
this Agreement shall survive Executive's termination of employment and the
termination of this Agreement to the extent necessary for the intended
preservation of such rights and obligations.

     13. Validity. The invalidity or unenforceability of any provision or
         --------
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

     14. Counterparts. This Agreement may be executed in one or more
         ------------
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

     15. Entire Agreement. This Agreement sets forth the entire agreement of the
         ----------------
parties hereto in respect of the subject matter contained herein and supersedes
all prior agreements, promises, covenants, arrangements, communications,
representations or warranties, whether oral or written, by any officer, employee
or representative of any party hereto in respect of such subject matter. Any
prior agreement of the parties hereto in respect of the subject matter contained
herein is hereby terminated and canceled.

     16. Withholding. All payments hereunder shall be subject to any required
         -----------
withholding of federal, state and local taxes pursuant to any applicable law or
regulation.

     17. Section Headings. The section headings in this Agreement are for
         ----------------
convenience of reference only, and they form no part of this Agreement and shall
not affect its interpretation.

     18. Public Disclosure. No press release or other public disclosure, either
         -----------------
written or oral, of this Agreement or its terms shall be made by Executive
without the prior written consent of the Company.

     19. Indemnification. From and after the date of this Agreement, the Company
         ---------------
hereby covenants and agrees to indemnify and hold harmless Executive in a manner
at least consistent with the provisions of the Company's Certificate of
Incorporation and By-laws, as in effect on the date of this Agreement.

     20. Governing Law. The provisions of this Agreement shall be construed and
         -------------
enforced in accordance with the laws of the State of Delaware.

                                      A-1

<PAGE>

     21. Definitions. Certain capitalized terms not otherwise defined in the
         -----------
body of this Agreement shall have the meanings set forth below:

          "Bonus Opportunity" means the bonus that Executive would have earned
     for the fiscal year in which employment termination occurs under any and
     all bonus plans in effect during such year, including but not limited to
     the bonus plan referenced in Section 5(b) of this Agreement. This amount
     shall be determined in good faith at the sole discretion of the Company's
     Board of Directors. Wherever this Agreement provides for a payment based on
     the Bonus Opportunity, the Board, in setting the amount of the payment
     pursuant to any applicable bonus plan(s), shall presume that the Company's
     minimum performance for such fiscal year will be comparable to the
     Company's performance through the Date of Termination for such fiscal year
     if such performance were extrapolated for the entire fiscal year, but the
     Company's Board of Directors shall not be bound by this minimum performance
     extrapolation if the Company's Board of Directors expects the Company's
     actual results for such fiscal year to exceed the minimum performance
     extrapolation.

          "Change of Control" shall have the meaning accorded thereto in
     Exhibit C hereto.
     ---------

          "Change of Control Date" means the date on which a Change of Control
     occurs.

          "Executive Deferred Compensation Agreement" means that certain
     deferred compensation agreement between the Company and Executive, a true
     and correct copy of which is attached hereto as Exhibit D.
                                                     ---------

          "Good Reason" means the occurrence of any of the following, without
     the express written consent of Executive, after the occurrence of a Change
     of Control:

               (i) the assignment to Executive of any duties inconsistent in any
          material adverse respect with Executive's position, authority or
          responsibilities as contemplated by Section 3 of this Agreement, or
          any other material adverse change in such position, including titles,
          authority or responsibilities;

               (ii) any failure by the Company to comply with any of the
          provisions of Section 5 of this Agreement, other than an insubstantial
          or inadvertent failure remedied by the Company promptly after receipt
          of notice thereof given by Executive; or

               (iii) the Company's requiring Executive to be based, or to
          perform a substantial portion of his duties with the Company, at any
          office or location more than 20 miles from that location at which he
          performed his services specified under the provisions of Section 3
          immediately prior to the Change of Control Date, except for travel
          reasonably required in the performance of Executive's
          responsibilities.

                                      A-2

<PAGE>

          "Pro Rata" means the number of days elapsed prior to Executive's Date
     of Termination as a percentage of the number of days in the fiscal year.

          "Window Period" means the nine (9) month period immediately following
     a Change of Control Date.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first above written.

                                                  Company:

                                                  Pemco Aviation Group, Inc.,
                                                  a Delaware corporation

                                                  By: /s/ H.T. Bowling
                                                      --------------------------
                                                  Name: H.T."Skip" Bowling
                                                  Title: Vice Chairman, Director

                                                  Executive:

                                                  /s/ Ronald A. Aramini
                                                  ------------------------------
                                                  Name:  Ronald A. Aramini

                                      A-3

<PAGE>

                                    EXHIBIT A

                       (2001 Incentive Compensation Plan)

     [See attached.]

                                      A-4

<PAGE>

                                    EXHIBIT B

                            (Stock Option Agreement)

     [See attached.]

                                      B-1

<PAGE>

                                    EXHIBIT C

                                Change of Control
                                -----------------

     A "Change of Control" shall occur if:

     (a) the individuals who, as of December 1, 1999, constitute the Board (the
"Incumbent Board"), cease for any reason to constitute at least a majority of
the Board; provided, however, that any individual becoming a director subsequent
to December 1, 1999 whose election, or nomination for election by the Company's
stockholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such an
individual were a member of the Incumbent Board; or

     (b) any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended), other than any
such individual, entity or group which includes a member of the Incumbent Board,
acquires (directly or indirectly) the beneficial ownership (within the meaning
of Rule 13d-3 promulgated under such Act) of more than 50% of the voting power
of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors ("Voting Power"); or

     (c) consummation of a merger or consolidation involving the Company, or a
sale or disposition of all or substantially all of the Company's assets, or a
plan of liquidation or dissolution of the Company, other than (i) a merger or
consolidation in which the holders of the voting securities of the Company
outstanding immediately prior to the merger or consolidation hold at least a
majority of the Voting Power of the surviving corporation immediately after such
merger or consolidation, (ii) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) by which no person,
other than any individual, entity or group which includes a member of the
Incumbent Board, acquires more than 50% of the Voting Power of the Company, or
(iii) a merger or consolidation in which the Company is the surviving
corporation and such transaction was determined not to be a Change of Control,
which transaction and determination was approved by a majority of the Board in
actions taken prior to, and with respect to, such transaction.

                                      C-1

<PAGE>

                                    EXHIBIT D

                    Executive Deferred Compensation Agreement
                    -----------------------------------------

                                 (See attached)

                                      D-1

<PAGE>

                                  SCHEDULE 5(g)

                             (Life Insurance Policy)

     [See attached Certificate of Insurance]

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