Document:

<PAGE>   1
                                                                  EXHIBIT 10.(L)

                             LOAN FACILITY AGREEMENT
                                  AND GUARANTY

                                  by and among

                                AARON RENTS, INC.

                                       and

                                 SOUTHTRUST BANK

                          Dated as of August ____, 2000

<PAGE>   2

                      LOAN FACILITY AGREEMENT AND GUARANTY

         THIS LOAN FACILITY AGREEMENT AND GUARANTY (the "Agreement") made as of
August ____, 2000, by and between AARON RENTS, INC., a Georgia corporation
having its principal place of business and chief executive office at 1100 Aaron
Building, 309 East Paces Ferry Road, N.E., Atlanta, Georgia 30305 ("Sponsor")
and SOUTHTRUST BANK, an Alabama banking corporation having its principal Georgia
office in Atlanta, Georgia (the "Bank").

                              W I T N E S S E T H:

         WHEREAS, Sponsor has established relationships with certain individual
owners (the "Franchisee Owners") of certain rental store operators (the
"Franchisees") across the United States who own and operate rental stores under
the "Aaron's Rental Purchase" franchise;

         WHEREAS, in connection therewith, Sponsor wishes to establish a loan
program with the Bank to provide term loans to the Franchisee Owners for equity
contributions towards capitalization of such Franchisee Owner's "Aaron's Rental
Purchase" franchise;

         WHEREAS, the Bank is willing to establish such a loan program based
upon the obligation of the Sponsor to unconditionally guarantee such loans, all
as more particularly set out below;

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

                                 1. DEFINITIONS

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

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

              "Adjusted LIBO Rate" = LIBOR
                                     -------------------------------
                                     1.00 - LIBOR Reserve Percentage

         "Adjusted LIBO Plus Rate" shall mean the Adjusted LIBO Rate plus one
and one-half percent (1 1/2%).

As used herein, LIBOR Reserve Percentage shall mean, for any Payment Period, the
reserve percentage (expressed as a decimal) equal to the then stated maximum
rate of all reserve requirements (including, without limitation, any marginal,
emergency, supplemental, special or other reserves) applicable to any member
bank of the Federal Reserve System in respect of

<PAGE>   3

Eurocurrency liabilities as defined in Regulation D (or against any successor
category of liabilities as defined in Regulation D).

         "Affiliate" of any Person shall mean any other Person directly or
indirectly controlling, controlled by, or under common control with, such
Person, whether through the ownership of voting securities, by contract or
otherwise. For purposes of this definition, "control" (including with
correlative meanings, the terms "controlling", "controlled by", and "under
common control with") as applied to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of that Person.

         "Agreement" shall mean this Loan Facility Agreement and Guaranty, as
amended, restated, supplemented or modified from time to time.

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

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

         "Bankruptcy Law" shall mean any bankruptcy, reorganization, compromise,
arrangement, insolvency, readjustment of debt, dissolution or liquidation or
similar law.

         "Base Rate" shall mean the per annum rate of interest designated from
time to time by the Bank to be its base rate. The Base Rate is a reference rate
and does not necessarily represent the lowest or best rate of interest that is
being offered by the Bank to its borrowers.

         "Borrower" shall mean a Franchisee Owner who is primarily liable for
repayment of a Loan as a result of having executed Loan Documents as maker, or
its permitted assignee.

         "Borrower Rate" shall mean, with respect to each Loan, the Base Rate
per annum plus any additional margin per annum specified for such Loan by
Sponsor in the applicable Funding Approval Notice, such margin not to exceed ten
percent (10.0%) per annum.

         "Business Day" shall mean any day excluding Saturday, Sunday and any
other day on which banks are required or authorized to close in Atlanta, Georgia
or New York, New York and, if the applicable Business Day relates to Adjusted
LIBO Rate, on which trading is not carried on by and between banks in the London
interbank market.

         "Capital Stock" means any capital stock (or other equivalent equity
interest issued in other than stock, including, in the case of a partnership or
limited liability company, partnership interests or member interests) of a
Franchisee, whether common, preferred or otherwise.

          "Closing Date" shall mean, for any Loan Commitment, the date upon
which the Loan Documents with respect to such Loan Commitment are executed and
delivered and the Loan Commitment is established thereunder.

         "Closing Fee" shall have the meaning set forth in Section 2.1(d).

                                       2

<PAGE>   4

         "Collateral" shall mean, with respect to any Loan, all property of the
Borrower of such Loan and of the Franchisee owned by such Borrower as designated
by the Sponsor, which may include the Capital Stock of the Franchisee owned by
such Borrower.

         "Collateral Agreement" shall mean an agreement executed by a Borrower
and any other Persons primarily or secondarily liable for all or part of the
Loan or granting a security interest to the Bank in specified Collateral as
security for such Loan, including without limitation, a Pledge Agreement, any
other Loan Documents and any Existing Loan Documents between the Franchisee
owned by such Borrower or such other Person and the Bank.

         "Commitment" shall mean have the meaning set forth in Section 2.1(a).

         "Commitment Letter" means a letter from Bank to a Franchisee Owner
named in a Funding Approval Notice, substantially in the form of Exhibit A,
whereby Bank agrees to establish a Loan Commitment in favor of such Franchisee
Owner upon the terms and conditions set forth therein and in the Operative
Documents.

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

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

         "Conversion Date" shall mean the last day of the Interest Only Period.

         "Corporate Authorization" means, with respect to any Franchisee
Guarantor which is a corporation, certifications as to authorized signatories
and corporate action with respect to the Guaranty Agreement in the form attached
hereto as Exhibit B.

         "Credit Event" shall have the meaning set forth in Article 8 of this
Agreement.

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

         "Debit Authorization" means an authorization from a Borrower to
automatically debit Loan payments from a deposit account of such Borrower, in
the form prescribed by Bank from time to time.

         "Defaulted Borrower" shall mean a Borrower under a Defaulted Loan.

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

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

         "Environmental Laws" shall mean all federal, state, local and
applicable foreign statutes and codes or regulations, rules or ordinances
issued, promulgated, or approved thereunder, now or hereafter in effect
(including, without limitation, those with respect to asbestos or asbestos

                                       3
<PAGE>   5

containing material or exposure to asbestos or asbestos containing material),
relating to pollution or protection of the environment and relating to public
health and safety, relating to (i) emissions, discharges, releases or threatened
releases of pollutants, contaminants, chemicals or industrial toxic or hazardous
constituents, substances or wastes, including without limitation, any Hazardous
Substance, petroleum including crude oil or any fraction thereof, any petroleum
product or other waste, chemicals or substances regulated by any Environmental
Law into the environment (including, without limitation, ambient air, surface
water, ground water, land surface or subsurface strata), or (ii) the
manufacture, processing, distribution, use, generation, treatment, storage,
disposal, transport or handling of any Hazardous Substance, petroleum including
crude oil or any fraction thereof, any petroleum product or other waste,
chemicals or substances regulated by any Environmental Law, and (iii)
underground storage tanks and related piping, and emissions, discharges and
releases or threatened releases therefrom, such Environmental Laws to include,
without limitation (a) the Clean Air Act (42 U.S.C.ss.7401 et seq.), (b) the
Clean Water Act (33 U.S.C.ss. 1251 et seq.), (c) the Resource Conservation and
Recovery Act (42 U.S.C.ss. 6901 et seq.), (d) the Toxic Substances Control Act
(15 U.S.C.ss. 2601 et seq.), (e) the Comprehensive Environmental Response
Compensation and Liability Act, as amended by the Superfund Amendments and
Reauthorization Act (42 U.S.C.ss. 9601 et seq.), and (f) all applicable national
and local laws or regulations with respect to environmental control.

         "Existing Facility Agreement" shall mean that certain Amended and
Restated Loan Facility and Guaranty Agreement dated as of November 3, 1999, by
and among the Sponsor, SunTrust Bank, formerly SunTrust Bank, Atlanta, as Bank
and each of the Participants a party thereto.

         "Final Termination Date" shall mean the date which is ninety (90) days
after the last Maturity Date of any Loan.

         "Financing Statement" shall mean, with respect to a Loan, a document
which among other things, describes the Borrower and the Collateral, the proper
filing of which perfects a security interest in the Collateral described therein
under the laws of the state in which such document is filed.

         "Franchisee" shall have the meaning set forth in the recitals hereof.

         "Franchise Agreement" shall mean the written agreement between Sponsor
and a Franchisee whereby the Franchisee is authorized to establish an "Aaron's
Rental Purchase" franchise.

         "Franchisee Guarantor" shall mean, with respect to any Borrower's Loan
Commitment, the Franchisee owned by such Borrower that becomes a party to a
Franchisee Guaranty.

         "Franchisee Guaranty" shall mean the Guaranty Agreement substantially
in the form of Exhibit D, as the same may be amended, restated, supplemented or
otherwise modified from time to time.

                                       4

<PAGE>   6

         "Franchisee Loan Agreement" shall mean, with respect to any Borrower, a
"Loan Agreement", as such term is defined in the Existing Facility Agreement,
between the Franchisee owned by such Borrower and the Bank.

         "Franchisee Loan Document" shall mean, with respect to any Borrower, a
"Loan Document", as such term is defined in the Existing Facility Agreement,
between the Franchisee owned by such Borrower and the Bank.

         "Franchisee Owner" shall have the meaning set forth in the recitals
hereof.

         "Funding Approval Notice" shall mean a written notice to the Bank from
Sponsor setting forth the conditions of a proposed Loan Commitment, consistent
with the requirements therefor as set forth in this Agreement, and containing
such information and in substantially in the form of Exhibit E attached hereto.

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

         "Guarantor" shall mean Aaron Rents, Inc. and all other subsidiaries of
the Sponsor that from time to time become parties to the Guaranty Agreement, and
their respective successors and permitted assigns.

         "Interest Only Period" shall mean, as to each Loan, the period of time
from the Loan Funding Date applicable thereto, through such later date requested
by Sponsor in the Loan Request for such Loan, but in no event more than ninety
(90) days after such Loan Funding Date.

         "LIBOR" shall mean, for each Payment Period, the offered rate for
deposits in U.S. Dollars, for a period of one month and in an amount comparable
to the aggregate outstanding principal of the Loans as of the first day of such
Payment Period, appearing on Telerate Page 3750 as of 11:00 A.M. (Atlanta,
Georgia time) on the Business Day next preceding such date. If two or more of
such rates appear on Telerate Page 3750, the rate for that Payment Period shall
be the arithmetic mean of such rates. If the foregoing rate is unavailable from
Telerate Page 3750 for any reason, then such rate shall be determined by the
Bank from the Reuters Screen LIBO Page or, if such rate is also unavailable on
such service, then on any other interest rate reporting service of recognized
standing designated in writing by the Bank to Sponsor; in any such case rounded,
if necessary, to the next higher 1/100 of 1.0%, if the rate is not such a
multiple.

         "Lien" shall mean any mortgage, pledge, security interest, encumbrance,
lien, charge, hypothecation, assignment, deposit arrangement, title retention,
preferential property right, trust

                                       5

<PAGE>   7

or other arrangement having the practical effect of the foregoing (including any
agreement to give any of the foregoing, any conditional sale or other title
retention agreement, any lease in the nature thereof, including any lease or
similar arrangement with a public authority executed in connection with the
issuance of industrial revenue bonds or pollution control revenue bonds, and the
filing of or agreements to give any financing statement under the Uniform
Commercial Code of any jurisdiction).

         "Loan" shall mean the transaction whereby a term loan is made by the
Bank to a Borrower in the amount upon the terms and pursuant to the Loan
Commitment described in the Loan Agreement of such Borrower, and shall include
the Prior Loans.

         "Loan Account" means the internal bank loan account established by Bank
for each Borrower.

         "Loan Agreement" shall mean a Term Loan and Security Agreement setting
forth the terms and conditions, as between a Borrower and the Bank, under which
the Bank has established Loan Commitments to make Loans to such Borrower, with
such changes as the Sponsor and the Bank shall agree to, subject to Section
3.1(b); provided, however, that any Loan Agreement executed prior to the
Effective Date shall be substantially in the form previously approved by the
Bank.

         "Loan Commitment" shall mean, for any Borrower, the commitment to make
Loans established by the Bank in favor of any Borrower in the form of Exhibit F,
in an amount not less than $100,000, and upon the terms described in, the
applicable Funding Approval Notice and the applicable Loan Documents, and shall
include the Prior Loan Commitments.

         "Loan Default" shall mean an occurrence with respect to a Loan which is
defined by the applicable Loan Documents to be an event of default (including
but not limited to a Loan Payment Default).

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

         "Loan Funding Date" shall mean, with respect to any Loan, the date on
which the Bank advances such Loan to the applicable Borrower.

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

                                       6

<PAGE>   8

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

         "Loan Request" shall mean the funding request from the Sponsor, on
behalf of a Borrower, which shall be substantially in the form of Exhibit C.

         "Master Note" shall mean that certain Master Note, executed by a
Borrower in favor of the Bank, evidencing such Borrower's obligation to repay
all Loans made to it pursuant to a Loan Commitment, substantially in the form of
Exhibit G to the Loan Agreement, with such changes as the Sponsor and the Bank
shall agree to, subject to Section 3.1(b); provided, however, that any Master
Note executed prior to the Effective Date shall be substantially in the form
previously agreed upon by the Bank.

         "Materially Adverse Effect" shall mean any materially adverse change in
(i) the business, results of operations, financial condition, assets or
prospects of the Sponsor and its Subsidiaries, taken as a whole, (ii) the
ability of the Sponsor to perform its obligations under this Agreement, or (iii)
the ability of the Guarantors (taken as a whole) to perform their respective
obligations under the Guaranty Agreement.

         "Maturity Date" shall mean, with respect to any Loan, if not earlier
accelerated, the Payment Date occurring during the month in which occurs the
fifth (5th) anniversary of the Conversion Date of such Loan; provided that, each
Maturity Date shall be a Payment Date.

         "Monthly Servicing Report" shall have the meaning set forth in Section
3.3(a).

         "Operative Documents" shall mean this Agreement, and any other
documents delivered by Sponsor or any Guarantor to the Bank in connection
herewith or therewith.

         "Payment Date" shall mean the fifteenth (15th) day of each calendar
month; provided, however, if such day is not a Business Day, the next succeeding
Business Day.

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

         "Person" shall mean any individual, partnership, firm, corporation,
association, joint venture, trust or other entity, or any government or
political subdivision or agency, department or instrumentality thereof.

         "Pledge Agreement" shall mean a Pledge Agreement in substantially the
form of Exhibit H, pursuant to which a Borrower pledges certain of the Capital
Stock of the Franchisee owned by such Borrower to secure such Borrower's Loans.

                                       7

<PAGE>   9

         "Prior Loan" shall have the meaning set forth in Section 13.13.

         "Prior Loan Commitment" shall have the meaning set forth in Section
13.13.

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

         "Response Period" shall mean, for any Loan, a period of seventy (70)
days commencing on the day next succeeding the day on which the Sponsor receives
a notice from the Bank of such Loan Default, provided, however, that no Response
Period shall extend beyond the Final Termination Date.

         "Reuters Screen" shall mean, when used in connection with any
designated page and LIBOR, the display page so designated on the Reuters Monitor
Money Rates Service (or such other page as may replace that page on that service
for the purpose of displaying rates comparable to LIBOR).

         "Servicing Fee" shall mean, for any calendar month, a fee equaling
one-half (1/2) of one percent (.50%) of the average daily aggregate outstanding
balance of all Loans during such month, payable monthly as hereinafter provided.

         "Spousal Consent" shall mean any agreement provided by the spouse of
any Borrower, to be substantially in the form provided by the Bank.

         "Subordinated Debt" shall have the meaning set forth in Section 9.6.

         "Subsidiary" shall mean, with respect to any Person, any corporation or
other entity (including, without limitation, partnerships, joint ventures, and
associations) regardless of its jurisdiction of organization or formation, at
least a majority of the total combined voting power of all classes of voting
stock or other ownership interests of which shall, at the time as of which any
determination is being made, be owned by such Person, either directly or
indirectly through one or more other Subsidiaries.

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

         "Taxes" shall mean any present or future taxes, levies, imposts,
duties, fees, assessments, deductions, withholdings or other charges of whatever
nature, including without limitation, income, receipts, excise, property, sales,
transfer, license, payroll, withholding, social security

                                       8

<PAGE>   10

and franchise taxes now or hereafter imposed or levied by the United States, or
any state, local or foreign government or by any department, agency or other
political subdivision or taxing authority thereof or therein and all interest,
penalties, additions to tax and similar liabilities with respect thereto.

         "Telerate" shall mean, when used in connection with any designated page
and LIBOR, the display page so designated on the Dow Jones Telerate Service (or
such other page as may replace that page on that service for the purpose of
displaying rates comparable to LIBOR).

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

         "Voting Stock" shall mean securities of any class or classes, the
holders of which are entitled to elect all of the corporate directors (or
Persons performing similar functions).

         "Wind-Down Event" shall mean that the Commitment Termination Date
occurs.

1.2      Accounting Terms and Determination.

         Unless otherwise defined or specified herein, all accounting terms
         shall be construed herein, all accounting determinations hereunder
         shall be made, all financial statements required to be delivered
         hereunder shall be prepared, and all financial records shall be
         maintained in accordance with, GAAP.

1.3      Other Definitional Terms.

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

1.4      Exhibits and Schedules.

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

                                2. LOAN FACILITY

2.1      Establishment of the Commitment; Loans; Closing Fee.

                  (a) Commitment. Subject to and upon the terms and conditions
         set forth in this Agreement and the other Operative Documents, and in
         reliance upon the guaranty and other obligations of the Sponsor set
         forth herein, the Bank hereby commits to Sponsor to establish Loan
         Commitments and to make Loans thereunder to such Borrowers as may be
         designated by the Sponsor in its Funding Approval Notices during a
         period commencing on the date hereof and ending on August 31, 2001 (the
         "Commitment Termination Date") in an aggregate committed amount at any
         one time outstanding not to exceed FIVE MILLION AND NO/100 DOLLARS
         ($5,000,000.00) (the "Commitment"); provided, that, notwithstanding any
         provision of this Agreement to the contrary, at no time shall the

                                       9

<PAGE>   11

         sum of aggregate committed amounts of all Loan Commitments outstanding
         pursuant to the Commitment, or, following the termination of any such
         Loan Commitment, Loans outstanding thereunder, exceed the Commitment.

                  (b) Within the limits of the Commitment and in accordance with
         the procedures set forth in this Agreement, the Sponsor may authorize
         the Bank to establish a Loan Commitment in favor of a Franchisee Owner
         who meets the credit criteria established by the Sponsor. The amount of
         each Loan Commitment shall be determined by the Sponsor but shall not
         be less than $100,000 for any Borrower and, in any event, shall be
         subject to the aggregate Commitment herein before stipulated. Pursuant
         to a Loan Commitment, the Bank shall agree to make Loans to the
         Borrower thereunder. The Loans made to a particular Borrower shall be
         evidenced by and secured under Loan Documents which shall be in form
         and substance mutually satisfactory to Bank and Sponsor, and the Bank
         shall prepare and distribute such Loan Documents to such Borrower and
         shall arrange for such Borrower to execute and deliver the same, and
         Bank shall provide Sponsor with copies of such Loan Documents if and to
         the extent requested by Sponsor. All Loans made pursuant to a
         particular Loan Commitment shall bear interest at the Borrower Rate
         designated by Sponsor in the applicable Funding Approval Notice. Each
         Loan may be prepaid in full or in part on any Business Day, without
         premium or penalty. Each Loan Commitment shall be, initially, one year,
         but shall automatically renew unless terminated by ninety (90) days'
         prior written notice by Bank or the Sponsor to the Borrower prior to
         the first anniversary date and may thereafter be terminated at any time
         by Bank or the Sponsor upon ninety (90) days' prior written notice to
         the Borrower or the Bank, as the case may be. Upon the termination of
         any Loan Commitment, the Bank shall have no further obligation to make
         Loans and any portion of a Loan Commitment not advanced prior to the
         termination of the Loan Commitment will be forfeited by the Borrower.
         The proceeds of each Loan made pursuant to the Loan Commitments shall
         be used solely to make equity contributions towards capitalization of
         the Franchisee owned by such Borrower.

                  (c) The Bank's obligation to establish each Loan Commitment
         under the Operative Documents is subject to the fulfillment of the
         following conditions as of the Closing Date of such Loan Commitment:

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

                           (ii)  the representations and warranties of the
                  Sponsor contained in Article 5 shall be true and correct in
                  all material respects with the same effect as though such
                  representations and warranties had been made on the Closing
                  Date of such Loan Commitment;

                           (iii) the Bank shall have received from the Sponsor a
                  Funding Approval Notice authorizing such Loan Commitment;

                           (iv)  all precedents and conditions to the Loan
                  Commitment together with such additional precedents and
                  conditions as may, at Sponsor's election, be

                                       10

<PAGE>   12

                  included in the applicable Funding Approval Notice, shall have
                  been completed to the Bank's reasonable satisfaction; and

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

                  (d) On the date of the execution and delivery of this
         Agreement, Sponsor shall pay to the Bank a one-time closing fee in the
         amount of $6,250.00 (the "Closing Fee") which amount shall be fully
         paid and non refundable as of such date.

2.2      Funding of Loans; Loan Payment Dates.

                  (a) The initial Loan made pursuant to each Loan Commitment
         shall be made by the Bank to Sponsor on behalf of the Borrower on the
         Closing Date thereof in accordance with the instructions set forth in
         the initial Loan Request. Thereafter, the Sponsor, on behalf of a
         Borrower, may request no more than one (1) additional Loan per month
         until the termination of the Loan Commitment; provided that, the
         Sponsor shall not have the right to request -------- an additional Loan
         if the making of such Loan to the Bank would cause such Borrower's Loan
         Indebtedness to exceed such Borrower's Loan Commitment. Any amount of
         the Loan Commitment not advanced prior to the termination of the Loan
         Commitment shall be forfeited by the applicable Borrower on the last
         day thereof. If the Borrower desires a Loan pursuant to its Loan
         Commitment, the Borrower shall submit a duly executed Loan Request to
         the Sponsor in writing (including by telecopy with original to follow
         by U.S. Mail) at least five (5) Business Days prior to the requested
         Loan, which Loan Request shall include the following information:

                           (i)   the Borrower's legal name;

                           (ii)  the amount of the Loan;

                           (iii) the proposed Loan Funding Date of, and the
                  length of the Interest Only Period applicable to, the Loan;

                           (iv)  the instructions for funding such Loan.

         The Bank shall have no obligation to make a Loan unless the Sponsor
         gives its prior written consent thereto by executing such Loan Request
         and forwarding such Loan Request to the Bank at least three (3)
         Business Days prior to the date such disbursement is to be made. All
         proceeds of Loans shall be funded to Sponsor on behalf of the Borrower,
         or at the request of Sponsor, directly to the Borrower. If Sponsor
         rejects the Loan Request, Sponsor shall notify the Borrower in writing
         within two (2) Business Days of such rejection.

                  (b) The Bank shall fund the Loans and each applicable Borrower
         shall repay the Loans made to it. Each Loan shall be repaid as follows:

                                       11

<PAGE>   13

                           (i)  Interest on principal shall be payable monthly,
                  commencing on the first Payment Date occurring after the Loan
                  Funding Date, and throughout the term of the Loan;

                           (ii) Commencing on the Payment Date of the first
                  month following the Conversion Date applicable to a Loan,
                  installments of principal shall be payable in amounts equal to
                  1/60th of the principal amount of the Loan funding on the Loan
                  Closing Date.

         On or before the fifteen (15th) day of each calendar month, Bank shall
mail to each Borrower a statement of the principal and interest then due on such
Borrower's Loans. Payments of such principal and interest amount shall be due
and payable on the Payment Dates and all accrued and unpaid interest and all
outstanding principal on any Loan shall be due and payable in full on the
Maturity Date for such Loan.

                  (c) The Bank shall have the exclusive right to collect and
         receive all such payments on the Loans from the Borrowers which are due
         and owing to Bank. In the event that Sponsor receives any such payment
         with respect to the Loans (other than with respect to Loans purchased
         by Sponsor or where Sponsor has been subrogated to the rights of the
         Bank pursuant to Section 9.13), such payments shall be accepted by
         Sponsor as agent for the Bank and the Sponsor shall immediately endorse
         and forward the same to the Bank.

                  (d) Payments on Loans received by Borrowers shall be allocated
         as provided in Section 3.1 hereof.

2.3      Prepayment.

         The Borrowers shall have the right to prepay their respective Loans in
         whole or in part upon at least two (2) Business Days prior notice to
         the Bank; provided that each full prepayment must be accompanied by all
         accrued and unpaid interest which has become due and payable. Partial
         prepayments of any Loan shall be applied to unpaid principal payments
         in inverse order of maturity.

2.4      Default Interest.

         If any amount payable to the Bank by the Borrower under the Operative
         Documents is not paid on the date due hereunder, such amount shall bear
         interest (to the extent permitted by law) for each day from such date
         up to (but not including) the date of actual payment (after as well as
         before judgment) at a rate per annum (computed on the basis of the
         actual number of days elapsed over a year of 360 days) equal to a rate
         per annum of the Borrower Rate plus 4%.

                                       12
<PAGE>   14

2.5      Voluntary Reduction of the Unutilized Commitment.

         Upon at least three (3) Business Days' prior telephonic notice
         (promptly confirmed in writing) to the Bank, Sponsor shall have the
         right, without premium or penalty, to terminate the Commitment, in part
         or in whole, provided that (i) any such termination shall apply to
         permanently reduce the Commitment, (ii) any partial termination
         pursuant to this Section 2.5 shall be in an amount of at least
         $1,000,000 and integral multiples of $1,000,000, and (iii) the
         Commitment may not be reduced if, as a result thereof, the amount of
         the Commitment is less than the aggregate sum of all outstanding Loan
         Commitments.

2.6      Late Payment Fees; Servicing Fee; Minimum Bank Interest; Calculation of
         Interest and Fees.

                  (a) The Bank shall pay the Sponsor any and all late payment
         fees collected by Bank from Borrowers, which payments shall be made
         promptly after Bank's collection of such fees.

                  (b) All computations of interest and fees required in this
         Agreement shall be performed by the Bank and shall be conclusive in the
         absence of manifest error. If and to extent reasonably requested by the
         Sponsor from time to time, the Bank shall provide the Sponsor with
         supporting information for such calculations.

                  (c) On or before the fifteenth (15th) day of each calendar
         month, the Bank shall be entitled to receive the Servicing Fee for the
         immediately preceding month, which fee shall be payable in accordance
         with paragraph (d) below.

                  (d) At the end of each calendar month, Bank shall calculate
         the aggregate amount of interest actually received by it on all
         outstanding Loans during such month (such amount being herein called
         the "Borrower Interest") and shall also determine the amount of
         interest that would have been received on the Loans during such month
         had such interest been computed at the Adjusted LIBO Plus Rate rather
         than the applicable Borrower Rate (such amount being herein called the
         "Bank Interest"). Bank shall report to Sponsor in each Monthly
         Servicing Report the difference between the Borrower Interest, on the
         one hand, and the sum of the Bank Interest and the Servicing Fee for
         such month, on the other hand. If the Borrower Interest for any month
         shall be less than the sum of the Bank Interest and the Servicing Fee
         for such month, Sponsor shall pay the Bank an amount equal to such
         difference within ten (10) Business Days following the delivery date of
         the Monthly Servicing Report for such month. In the event that the
         Borrower Interest for any month exceeds the sum of the Bank Interest
         plus the Servicing Fee for such month, Bank shall pay the Sponsor an
         amount equal to such difference by no later than the tenth (10th)
         Business Day following the delivery date of the Monthly Servicing
         Report for such month.

                                       13

<PAGE>   15

2.7      Wind-Down Events.

         In the event that the Commitment is not extended for any reason and the
         Commitment Termination Date occurs, then (x) the Sponsor shall not have
         the right to request that any further Loan Commitments be established,
         and (y) the Bank shall, within a reasonable period of time and in any
         event no later than thirty (30) days after the Commitment Termination
         Date, give notice to each of the Borrowers terminating the Loan
         Commitments as of the date which is ninety (90) days after delivery of
         such notice; provided, however, that the occurrence of such Wind-Down
         Event shall not affect the obligation of (i) the Bank to make Loans
         pursuant to existing Loan Commitments, except to the extent that the
         Loan Commitments are terminated pursuant to clause (y) above or (ii)
         the Credit Parties under the Operative Documents.

2.8      Reserve Requirements; Change in Circumstances; Change in Lending
         Offices.

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

                  (b) If while the Commitment or any Loan Commitments are
         outstanding, the Bank determines that the adoption of any law, rule or
         regulation regarding capital adequacy or capital maintenance, or any
         change in any of the foregoing or in the interpretation or
         administration thereof by any governmental authority, central bank or
         comparable agency charged with the interpretation or administration
         thereof, or compliance by the Bank (or any lending office of the Bank)
         or the Bank's holding company with any request or directive regarding
         capital adequacy or capital maintenance (whether or not having the
         force of law) of any such authority, central bank or

                                       14
<PAGE>   16

         comparable agency, has or would have the effect of reducing the rate of
         return on the Bank's capital or on the capital of the Bank's holding
         company, if any, as a consequence of this Agreement or the Loan
         Documents to a level below that which the Bank or the Bank's holding
         company could have achieved but for such adoption, change or compliance
         (taking into consideration the Bank's policies and the policies of the
         Bank's holding company with respect to capital adequacy) by an amount
         reasonably deemed by the Bank to be material, then from time to time,
         within 15 days after written demand by the Bank, the Sponsor shall pay
         to the Bank such additional amount or amounts as will compensate the
         Bank or the Bank's holding company for such reduction. A certificate as
         to the amount of any such additional amount or amounts, submitted to
         the Sponsor by the Bank, shall, except for manifest error, be final,
         conclusive and binding for all purposes.

                  (c) The Bank agrees that, if requested by the Sponsor, it will
         use reasonable efforts (subject to overall policy considerations of the
         Bank) to designate an alternate lending office with respect to any of
         the Loans affected by the matters or circumstances described above to
         reduce the liability of the Sponsor or avoid the results provided
         thereunder, so long as such designation is not disadvantageous to the
         Bank as determined by the Bank, which determination if made in good
         faith, shall be conclusive and binding on all parties hereto. Nothing
         in this Section 2.8(c) shall affect or postpone any of the obligations
         of the Sponsor or any right of provided hereunder.

2.9      Payments.

                  (a) Each Borrower shall make each payment required to be made
         by it hereunder and under any other Operative Document to the Bank not
         later than 1:00 p.m. (Atlanta, Georgia time), on the date when due in
         dollars to the Bank at its offices in Atlanta, Georgia in immediately
         available funds.

                  (b) Whenever any payment hereunder or under any other
         Operative Document shall become due, or otherwise would occur, on a day
         that is not a Business Day, such payment may be made on the next
         succeeding Business Day, and such extension of time shall in such case
         be included in the computation of interest or Commitment Fees, if
         applicable.

            3. BANK'S SERVICING OBLIGATIONS; DISTRIBUTION OF PAYMENTS

3.1      Servicing of Loans.

                  (a) The Loan Documents for any Borrower's Loan shall not be
         modified or waived without the consent of Bank and Sponsor.

                  (b) Bank shall service the Loan Commitments and the Loans in
         the same manner in which it services loans of a similar type and size
         which Bank makes for its own account.

                  (c) If and for so long as no Credit Event shall have occurred
         and be continuing, Bank shall:

                                       15
<PAGE>   17
                           (i)      open and maintain files for the Loan
                  Documents for each Loan Commitment and receive and keep
                  records of all payments with respect to the Loans;

                           (ii)     provide each Borrower with a monthly notice
                  of the principal and interest due on such Borrower's Loan;

                           (iii)    provide each Borrower with a reminder notice
                  of any monthly payment on its Loans which is past due;

                           (iv)     within five (5) days after any payment on
                  any Loan becomes more than 30 days past due, use good faith
                  efforts to provide the applicable Borrower with written notice
                  of such delinquency, which notice shall be sent by registered
                  mail with a copy to Sponsor;

                           (v)      use good faith efforts to provide Sponsor on
                  each Business Day with a report by telecopy summarizing all
                  Loans made on such day, all payments received on the Loans on
                  such day, and the remaining available balance under each Loan
                  Commitment;

                           (vi)     use good faith efforts to provide Sponsor
                  with a weekly report of all Defaulted Loans, which report
                  shall identify all Loans which are fifteen (15) days or more
                  past due;

                           (vii)    provide the Sponsor with notice of any Loan
                  Default (other than a Loan Payment Default) of which the Bank
                  acquires actual knowledge (it being agreed that the Bank shall
                  acquire such knowledge only if and to the extent such Loan
                  Default becomes known to the person or persons within the Bank
                  who are primarily responsible for administering the Loan
                  Commitments and the Loans); and

                           (viii)   provide to the Sponsor the Monthly Servicing
                  Reports required pursuant to Section 3.3 below.

3.2      Application of Payments.

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

                  (b) If during any period when no Credit Event has occurred and
         is continuing, amounts received by Bank are not capable of being
         allocated to any specific Loan or, in the case of amounts allocable to
         a specific Loan, are not sufficient to repay all obligations then due
         and owing with respect thereto, such amount shall be applied by the
         Bank as follows: (i) first, to the payment of accrued interest on the
         outstanding Loans, (ii) second, to the payment of any Servicing Fees
         owing hereunder, (iii) third, to the repayment of the Loans outstanding
         under the Loan Commitments, (iv) fourth, to the payment of all other

                                       16
<PAGE>   18

         amounts owing to the Bank hereunder, and (v) fifth, if all obligations
         of the Sponsor pursuant to the Operative Documents have been satisfied
         in full, to the Sponsor.

                  (c) During any period when a Credit Event has occurred and is
         continuing, any amounts received by Bank with respect to the Loan shall
         be applied, after deduction of any expenses incurred and the collection
         of any such amounts, as follows: (i) first, to the payment of any
         accrued and unpaid Servicing Fees, (ii) second, to the payment of all
         other amounts owing to the Bank hereunder, and (iii) thereafter, to
         such Persons as may be legally entitled thereto.

                  (d) If no sooner repaid, all amounts due and payable to the
         Bank under the Operative Documents shall be due and payable in full on
         the Final Termination Date.

3.3      Servicing Reports.

                  (a) On each Payment Date, Bank shall provide to Sponsor by
         telecopy a report in the form of Exhibit P attached hereto (a "Monthly
         Servicing Report") setting forth the information required therein.

                  (b) Bank shall generate at the end of each calendar month, a
         monthly loan account statement which shall be sent to each Borrower.

3.4      Sponsor Instructions.

         If and for so long as no Credit Event shall have occurred and be
         continuing, Bank shall comply with the instructions of Sponsor with
         respect to modifications or waivers of the provisions of any of the
         Loan Documents or with respect to the administration of the Loan
         Commitments and the Loans; provided, however, that Bank shall not be
         required to comply with any such instructions if and to the extent that
         Bank reasonably determines that such compliance is contrary to the
         terms of any of the Loan Documents or the Operative Documents, is
         contrary to applicable law, or otherwise would expose Bank to possible
         liability.

3.5      Amendments and Additional Loan Documents.

         Bank shall not agree to any amendment of any Loan Documents without the
         prior written approval of Sponsor unless (i) such amendment is
         necessary to correct a typographical or other manifest error in such
         Loan Document or to correct an immaterial ambiguity in such Loan
         Document or (ii) a Credit Event shall have occurred and be then
         continuing. Bank shall provide Sponsor with copies of any and all
         amendments of the Loan Documents if and to the extent requested by
         Sponsor.

3.6      Assignment of Loans.

         If a Sponsor purchases a Loan from Bank pursuant to this Agreement, or
         in the event that Sponsor reimburses Bank for expenses incurred by it
         in connection with a proposed loan which was not closed and for which
         Bank has not received such reimbursement from the applicable Borrower,
         Bank shall be deemed to have assigned to Sponsor all of the Bank's

                                       17
<PAGE>   19

         rights and remedies against such Borrower, provided that such
         Assignment shall be subject to the terms and conditions of Section 9.13
         hereof.

                 4. LOAN DEFAULT; RIGHT TO MAKE GUARANTY DEMAND

4.1      Notice of Loan Defaults.

                  (a) Within fifteen (15) days after the occurrence of a Loan
         Payment Default or after Bank obtains actual knowledge of any other
         Loan Default, Bank shall use good faith efforts to send a notice of
         Loan Default to the applicable Borrower and notice to Sponsor.

                  (b) Following the sending of such notice of Loan Default, Bank
         shall as soon as is practicable, provide Sponsor with such other
         information relating to the Defaulted Borrower and the Defaulted Loan
         as Sponsor requests.

                  (c) Bank shall not be required to take any remedial action
         against any Defaulted Borrower under a Defaulted Loan and shall not be
         entitled to take any remedial action during any applicable Response
         Period except as expressly provided herein.

4.2      Waiver or Cure By The Sponsor.

         Unless a Credit Event or an Unmatured Credit Event has occurred and is
         continuing, within the Response Period, the Sponsor shall be entitled
         (but not obligated) to:

                  (a) in the case of a Loan Default, other than a Loan Payment
         Default, waive such Loan Default by sending to the Bank a Default
         Waiver Request, except as set forth in Section 4.4; provided however,
         that the Sponsor shall not request a waiver of more than three (3) such
         Loan Defaults in any one year period with respect to any Loan
         Commitment; or

                  (b) in the case of a Loan Payment Default, to waive and cure
         such Loan Payment Default; provided, however, that Sponsor shall not
         waive and cure more than two (2) consecutive Loan Payment Defaults nor
         waive and cure more than a total of four (4) Loan Payment Defaults in
         any four year period, with respect to any Loan Commitment.

                  During a Response Period, the Bank shall refrain from taking
         any legal action against the Defaulted Borrower under the Defaulted
         Loan which is the subject of such Response Period, and from
         accelerating payment of the Loan Indebtedness under such Defaulted
         Loan, but the Bank shall cease funding any further Loans pursuant to
         the Loan Commitment. If the Sponsor waives any Loan Default (other than
         a Loan Payment Default) or waives and cures any Loan Payment Default
         (subject to Section 4.4) prior to the expiration of a Response Period,
         then as to each Loan Default so waived or waived and cured, the
         Defaulted Borrower's and the Bank's respective rights and obligations
         under the Loan Documents shall be restored to the same status as if
         such waived Loan Default never occurred. In addition, if the Sponsor
         takes over the operation of the business of a certain Franchisee that
         is an "Established Franchisee Borrower" (as such term is defined in the
         Existing Facility Agreement) as provided in Article 10 of the

                                       18
<PAGE>   20

         Existing Facility Agreement, the Bank shall refrain from exercising
         remedies against the Borrower that owns such Franchisee for as long as
         the "Bank" under the Existing Facility Agreement refrains from
         exercising remedies against such Franchisee.

4.3      Defaulted Loan Guaranty Demand.

                  (a) In the event that following the end of a Response Period,
         a Loan Payment Default is not cured or in the event that any other Loan
         Default is not then waived, the Bank shall have the right at any time
         thereafter to demand that Sponsor comply with its obligations with
         respect to such Defaulted Loan set forth in Article 9.

                  (b) In the event that a Credit Event has occurred and is
         continuing and Sponsor has not purchased all outstanding Loans
         hereunder and fully cash-collateralized the amount of the aggregate
         Loan Commitments, the Sponsor agrees that the Bank shall be released
         from its obligations to the Sponsor hereunder with respect to
         administering and enforcing all Loans and Loan Commitments and may
         administer and enforce such Loans and Loan Commitments as it deems
         appropriate, without regard to any limitations or restrictions set
         forth herein (but subject to Article 3 in all events) or in any other
         Operative Document.

4.4      No Waiver or Cure Available.

         Notwithstanding anything contained in this Article to the contrary, the
         Sponsor shall, within five (5) Business Days of its receipt of a
         written demand from the Bank instructing it to do so, purchase the Loan
         Indebtedness of any Loan and assume the Loan Commitment with respect to
         a Defaulted Borrower whose Loan Default either arises from the
         bankruptcy or insolvency of such Borrower or such Borrower's Franchisee
         or the termination of the Franchise Agreement to which such Borrower's
         Franchisee is a party.

                       5. REPRESENTATIONS AND WARRANTIES

         The Sponsor (as to itself and each of the Consolidated Companies)
         hereby represents and warrants to the Bank that:

5.1      Organization and Qualification.

         The Sponsor and its Subsidiaries are corporations duly organized,
         validly existing and in good standing under the laws of the State of
         Georgia and the State of Delaware, as applicable; the Sponsor and its
         Subsidiaries have the corporate power to own their property and to
         carry on their business as now being conducted; and the Sponsor and its
         Subsidiaries are duly qualified as foreign corporations to do business
         and are in good standing in every jurisdiction in which the nature of
         the business conducted by them makes such qualification necessary and
         where failure to qualify would have a Materially Adverse Effect.

5.2      Sponsor's Powers.

                                       19
<PAGE>   21

         The execution, delivery and performance of this Agreement, the Guaranty
         Agreement, the Amendment to Loan Agreement and each other Operative
         Document required hereunder are within the Sponsor's or the Guarantors'
         corporate powers, as the case may be, have been duly authorized by all
         necessary shareholder or corporate action, and do not and will not
         contravene or conflict with the terms of any charter, by-law or other
         organizational papers of the Sponsor or any of its Subsidiaries, or any
         indenture, agreement or undertaking to which the Sponsor or any of its
         Subsidiaries is a party or by which the Sponsor or any of its
         Subsidiaries is bound or affected.

5.3      Enforceability of Agreement and Other Operative Documents.

         This Agreement is a legal, valid and binding agreement of the Sponsor,
         enforceable against the Sponsor in accordance with its terms, and each
         other Operative Document and any other instrument or agreement required
         hereunder, when executed and delivered, will be similarly legal, valid,
         binding and enforceable against the Sponsor and its Subsidiaries, as
         applicable, in accordance with their respective terms.

5.4      Statutes, Judgments.

         There is no law, statute, rule or regulation, nor is there any
         judgment, decree or order of any court or agency binding on the Sponsor
         or any of its Subsidiaries, which would be contravened by the
         execution, delivery or performance of this Agreement (including,
         without limitation, the interest payment and allocation provisions
         hereof).

5.5      No Credit Event; Unmatured Credit Event or Change of Control.

         No Credit Event or Unmatured Credit Event has occurred and is
         continuing or will occur as a result of the incurring of any obligation
         under this Agreement.

5.6      Possession of Franchises, Licenses, Etc.; Laws.

         The Sponsor and its Subsidiaries possess all franchises, certificates,
         licenses, permits and other authorizations from governmental political
         subdivisions or regulatory authorities, and all patents, trademarks,
         service marks, trade names, copyrights, licenses and other rights, free
         from burdensome restrictions, that are necessary for the ownership,
         maintenance and operation of any of their respective properties and
         assets, and neither the Sponsor nor any of its Subsidiaries is in
         violation in any material respect of any thereof.

5.7      Contingent Liabilities.

         After due inquiry, there exists no material contingent liability or
         obligation assertable against the Sponsor or its Subsidiaries that is
         not identified and disclosed to the Bank in the consolidated financial
         statements hereto delivered to Bank.

5.8      Compliance with Laws.

         Each of the Sponsor and its Subsidiaries is in compliance in all
         material respects with all applicable federal, state and local laws,
         rules, regulations and orders, including, without

                                       20
<PAGE>   22

         limitation, all federal, state and local laws, rules, regulations and
         orders relating to pollution, reclamation or protection of the
         environment, including laws relating to emissions, discharges, releases
         or threatened releases of pollutants, contaminants, or hazardous or
         toxic materials or wastes into air, water, or land, or otherwise
         relating to the manufacture, processing, distribution, use, treatment,
         storage, disposal, transport, or handling of pollutants, contaminants
         or hazardous or toxic materials or wastes, and all federal, state and
         local laws, rules, regulations and orders relating to franchising
         activities.

5.9      Representations and Warranties with Respect to Specific Loans.

         The Sponsor represents and warrants to the Bank with respect to each
         Loan Commitment established and each Loan made pursuant to the
         Operative Documents that:

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

                  (b) The Master Note and accompanying Loan Documents executed
         in connection with such Loan and delivered to the Bank are the only
         contracts evidencing the transaction described therein and constitute
         the entire agreement of the parties thereto with respect to such
         transaction and Sponsor has not made any other promises, agreements or
         representations and warranties with respect to the transactions
         evidenced by such Master Note.

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

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

                  (e) The proceeds of each Master Note will be solely for the
         purpose of financing the Franchisee Owner's equity contributions to the
         Franchisee that such Franchisee Owner owns and is required to make
         contributions to pursuant to the Franchise Agreement.

                            6. AFFIRMATIVE COVENANTS

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

                                       21
<PAGE>   23

Loan remains outstanding or any Loan Commitment remains in effect under this
Agreement or Sponsor has any other unsatisfied obligations under the Operative
Documents:

6.1      Financial Statements, Reports and Other Financial Data.

         The Sponsor will deliver to the Bank:

                  (a) as soon as practicable and in any event within forty-five
         (45) days after the end of each calendar quarter (other than the last
         calendar quarter) in each fiscal year, consolidated statements of
         income, cash flow and retained earnings of the Sponsor and its
         Subsidiaries for the period from the beginning of the current fiscal
         year to the end of such calendar quarter, and consolidated balance
         sheets of the Sponsor and its Subsidiaries as at the end of such
         calendar quarter, setting forth in each case in comparative form
         figures for the corresponding period in the preceding fiscal year, all
         in reasonable detail and certified by the Chief Financial Officer of
         the Sponsor, subject to changes resulting from year-end adjustments;

                  (b) as soon as practicable and in any event within 90 days
         after the end of each fiscal year (or as soon as made available by the
         Sponsor's independent public accountants if availability is delayed
         beyond such 90-day period for reasons beyond the Sponsor's control)
         audited consolidated statements of income, cash flow and retained
         earnings of the Sponsor and its Subsidiaries for such year, and an
         audited consolidated balance sheet of the Sponsor and its Subsidiaries
         as at the end of such year, setting forth in each case in comparative
         form corresponding figures from the preceding annual statements, all in
         reasonable detail and reasonably satisfactory in scope to the Bank, and
         the consolidated financial statements shall be certified by independent
         public accountants of recognized standing, selected by the Sponsor,
         whose report shall be in scope and substance reasonably satisfactory to
         Bank, and shall be certified by the Chief Financial Officer of the
         Sponsor;

                  (c) along with the quarterly and annual reports required by
         clauses (a) and (b) above, a certificate of the Chief Financial Officer
         of the Sponsor certifying that no Event of Default exists and that no
         event exists which with notice or the lapse of time or both would
         become such an Event of Default;

                  (d) promptly upon receipt thereof, copies of any detailed
         reports submitted to the Sponsor by its independent public accountants
         in connection with each annual audit or interim review of the books of
         the Sponsor or its Subsidiaries made by such accountants;

                  (e) promptly upon transmission thereof, copies of all
         financial statements, proxy statements, notices and reports as the
         Sponsor shall send to its shareholders and of all regular or periodic
         reports which it is or may be required to file with the Securities and
         Exchange Commission or any governmental department, bureau, commission
         or agency succeeding to the functions of the Securities and Exchange
         Commission; and

                  (f) with reasonable promptness, such other financial data as
         the Bank may reasonably request.

                                       22
<PAGE>   24

6.2      Payment.

         The Sponsor will pay all sums due under this Agreement and the other
         Operative Documents according to the terms hereof.

6.3      Notice of Credit Event, Unmatured Credit Event.

         The Sponsor will immediately give notice to the Bank of any Credit
         Event or Unmatured Credit Event.

6.4      Corporate Existence.

         The Sponsor will maintain its corporate existence and good standing in
         the jurisdiction of its incorporation, and the Sponsor will qualify and
         remain qualified to do business as a foreign corporation in each
         jurisdiction in which the nature of the business conducted by it or its
         ownership of property makes such qualification necessary and where
         failure to qualify would have a Materially Adverse Effect.

6.5      Compliance with Laws, Etc.

         The Sponsor will comply, and cause each of its Subsidiaries to comply,
         in all material respects with all applicable federal, state, and local
         laws, rules, regulations and orders, including, without limitation, all
         federal, state and local laws, rules, regulations and orders relating
         to pollution, reclamation, or protection of the environment, including
         laws relating to emissions, discharges, releases or threatened releases
         of pollutants, contaminants, or hazardous or toxic materials or wastes
         into air, water, or land, or otherwise relating to the manufacture,
         processing, distribution, use, treatment, storage, disposal, transport,
         or handling of pollutants, contaminants or hazardous or toxic materials
         or wastes, and all federal, state and local law, rules, regulations and
         orders relating to franchising activities.

                                       23
<PAGE>   25

                             7. NEGATIVE COVENANTS

         NOT APPLICABLE.

                         8. CREDIT EVENTS AND REMEDIES

         In the event that:

                  (a) The Sponsor defaults in the payment of any amount due
         hereunder; or

                  (b) The Sponsor or any of its Subsidiaries defaults in any
         payment of principal of or interest on any other obligation for a
         material amount of money borrowed (or any material obligation under
         conditional sale or other title retention agreement or any material
         obligation secured by a purchase money mortgage or any material
         obligation under notes payable or drafts accepted representing
         extensions of credit) or defaults in the performance of any other
         agreement, term or condition contained in any agreement under which any
         such material obligation is created (or if any other default under any
         such agreement shall occur and be continuing) if the effect of such
         default is to cause, or to permit the holder or holders of such
         obligation (or a trustee on behalf of such holder or holders) to cause,
         such obligation to become due prior to its stated maturity (for
         purposes of this subsection (b), an obligation shall be material if the
         amount owed thereunder exceeds $500,000); or

                  (c) Any representation or warranty made by the Sponsor or any
         of its Subsidiaries herein or in any writing furnished in connection
         with or pursuant to this Agreement or other Operative Document shall be
         false or misleading in any material respect on the date as of which
         made; or

                  (d) The Sponsor defaults in the performance or observance of
         any other agreement, term, condition or covenant contained herein and
         such default shall continue for 30 days after the Sponsor knows or has
         reason to know of any such default; or

                  (e) The Sponsor or any of its Subsidiaries makes an assignment
         for the benefit of creditors or fails to pay its debts generally as
         they become due; or

                  (f) Any order, judgment or decree is entered under any
         Bankruptcy Law of any jurisdiction adjudicating the Sponsor or any of
         its Subsidiaries bankrupt or insolvent; or

                  (g) The Sponsor or any of its Subsidiaries petitions or
         applies to any tribunal for, or consents to, the appointment of, or
         taking possession by, a trustee, receiver, custodian or liquidator or
         similar official of the Sponsor or any of its Subsidiaries, or of any
         substantial part of the assets of the Sponsor or any of its
         Subsidiaries, or commences any proceedings (other than proceedings for
         the voluntary liquidation and dissolution of a Subsidiary) relating to
         the Sponsor or any of its Subsidiaries under the Bankruptcy Law of any
         jurisdiction, whether now or hereafter in effect, or any such petition
         or application is filed, or any such proceedings are commenced, against
         the Sponsor or any of its Subsidiaries and the Sponsor or such
         Subsidiary by any act indicates its approval thereof,

                                       24
<PAGE>   26

         consent thereto or acquiescence therein, or an order for relief is
         entered in an involuntary case under the federal bankruptcy laws, as
         now or hereafter constituted, or an order, judgment or decree is
         entered appointing any such trustee, receiver, custodian, liquidator or
         similar official, or approving the petition in any such proceedings,
         and such order judgment, or decree remains unstayed and in effect for
         more than 60 days; or

                  (h) Any order, judgment or decree is entered in any
         proceedings against the Sponsor decreeing the dissolution of the
         Sponsor and such order, judgment or decree remains unstayed and in
         effect for more than 60 days; or

                  (i) Any order, judgment or decree is entered in any
         proceedings against the Sponsor or any of its Subsidiaries decreeing a
         split-up of the Sponsor or such Subsidiary which requires the
         divestiture of a substantial part, or the divestiture of assets, or
         stock of a Subsidiary, which shall have contributed a substantial part
         of consolidated net earnings for any of the three fiscal years most
         recently ended, and such order, judgment or decree remains unstayed and
         in effect for more than 60 days; or

                  (j) Any "Reportable Event" shall have occurred, or any finding
         or determination shall be made with respect to a Plan under Section
         4041(c) or (e) of ERISA, or any fact or circumstance shall occur with
         respect to a Plan which, in the opinion of the Bank, provides grounds
         for the commencement of any proceeding under Section 4042 of ERISA, or
         any proceeding shall be commenced with respect to a Plan under Section
         4042 of ERISA; or

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

                  (l) The Sponsor or any of its Subsidiaries shall fail to make
         any payment as and when such payment is due under the Synthetic Lease
         Documents, or any other default, event or condition shall have occurred
         or exist under the Synthetic Lease Documents, the effect of which is to
         cause, or to permit the holder of the obligations of the Sponsor or any
         such Subsidiary under the Synthetic Lease Documents to cause, the
         obligations of the Sponsor or any of its Subsidiaries, or any portion
         thereof, to become due prior to its stated maturity date or prior to
         its regularly scheduled date of payment;

                  (m) There shall occur a Credit Event under the Existing
         Facility Agreement; or

                  (n) There occurs a default under any other agreement, note or
         loan agreement to which Sponsor (or any of its Subsidiaries) and Bank
         (whether directly or as participant or assignee) are parties.

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

                                       25
<PAGE>   27

         the Bank may, take any or all of the following actions, without
         prejudice to the rights of the Bank to enforce its claims against
         Sponsor, any other Credit Party, any Borrower or other obligor with
         respect to any Loan: (i) declare the Commitment terminated, whereupon
         the Commitment shall terminate immediately and any unpaid Commitment
         Fee shall forthwith become due and payable without any other notice of
         any kind (with the express understanding that such termination of the
         Commitment shall not result in a termination of the obligation of the
         Bank to fund any Loan Commitment); (ii) demand that the Sponsor
         purchase specified or all outstanding Loans and assume all Loan
         Commitments by paying to the Bank the Loan Indebtedness of each Loan
         and assuming the Bank's obligations under each Loan Commitment,
         whereupon such amount shall become, forthwith due and payable without
         presentment, demand, protest or other notice of any kind, all of which
         are hereby waived by the Sponsor; and (iii) take any other action and
         exercise any other remedy available by contract or at law; provided,
         that, if a Credit Event specified in Sections 8(f) or (g) shall occur,
         the result which would occur upon the giving of notice by the Bank to
         any Credit Party, shall occur automatically without the giving of any
         such notice.

         In addition, the Bank may, to the extent authorized to do so pursuant
         to the Loan Agreements (which authorization is limited to certain
         specified Credit Events), (x) cease funding further Loans pursuant to
         the Loan Commitments and (y) declare all Loan Indebtedness outstanding
         pursuant to the Loan Commitments to be immediately due and payable in
         accordance with the terms of the applicable Loan Documents and exercise
         all rights and remedies provided under the Loan Documents.

                                   9. GUARANTY

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

9.1      Unconditional Guaranty.

         The Sponsor hereby unconditionally and irrevocably guarantees to the
         Bank, and any transferee of the Bank, the full and prompt payment of
         all of the Guaranteed Obligations relating to the Loans and all costs,
         charges and expenses (including reasonable attorneys' fees) actually
         incurred or sustained by the Bank in enforcing the obligations of the
         Sponsor hereunder or the obligations of the Borrowers under the
         applicable Loan Documents. If any portion of the Loan Indebtedness with
         respect to any Defaulted Loan is not paid by the date specified herein,
         Sponsor hereby agrees to and will immediately pay the same, without
         resort by Bank to any other person or party. The obligation of Sponsor
         to Bank hereunder is primary, absolute and unconditional, except as may
         be specifically set forth herein. This is a guaranty of payment and not
         of collection. The obligations of the Sponsor pursuant to this Article
         9 shall be direct and immediate and constitute a guarantee which is
         continuing in nature; and such obligations are not contingent on the
         pursuit of any remedies against Borrower or other persons, OR on the
         satisfaction or compliance by Bank with any of the obligations
         covenants or agreements of Bank under this Agreement and such
         obligations. Guarantor does hereby agree that if any Guaranteed
         Obligation is not paid timely by a Borrower, or if any and all sums
         which

                                       26
<PAGE>   28

         are now or may hereafter become due from a Borrower to Bank under the
         Loan Documents are not paid or performed in accordance with their
         terms, Guarantor will immediately make such payments, subject to any
         limitations expressly set forth in this Agreement.

         The Bank may, in the event that the obligations of the Sponsor with
         respect to a Defaulted Loan have arisen hereunder, request that the
         Sponsor purchase the Defaulted Loan from the Bank prior to the
         acceleration of the Defaulted Loan and assume the Loan Commitment
         pursuant to which such Defaulted Loan was made, pursuant to the terms
         of the applicable Loan Documents for an amount equal to the Loan
         Indebtedness with respect to such Defaulted Loan and such purchase by
         the Sponsor, together with the assumption of the related Loan
         Commitment, shall be deemed to be a payment hereunder in such amount.

9.2      Continuing Guaranty.

         The obligations of the Sponsor pursuant to this Article 9 constitute a
         guarantee which is continuing in nature and shall be effective with
         respect to the full amount outstanding under all Guaranteed
         Obligations, now existing or hereafter made or extended, regardless of
         the amount.

9.3      Waivers.

         The Sponsor hereby waives notice of Bank's acceptance of this Agreement
         and the creation, extension or renewal of any Loans or other Guaranteed
         Obligations. Sponsor hereby consents and agrees that, at any time or
         times, without notice to or further approval from Sponsor, and without
         in any way affecting the obligations of Sponsor hereunder, Bank may,
         with or without consideration (i) release, compromise with, or agree
         not to sue, in whole or in part, any Borrower or any other obligor,
         guarantor, endorser or surety on any Loans or any other Guaranteed
         Obligations, (ii) renew, extend, accelerate, or increase or decrease
         the principal amount of any Loans or other Guaranteed Obligations,
         either in whole or in part, (iii) amend, waive, or otherwise modify any
         of the terms of any Loans or other Guaranteed Obligations or of any
         mortgage, deed of trust, security agreement, or other undertaking of
         any of the Borrowers or any other obligor, endorser, guarantor or
         surety in connection with any Loans or other Guaranteed Obligations,
         and (iv) apply any payment received from Borrowers or from any other
         obligor, guarantor, endorser or surety on the Loans or other Guaranteed
         Obligations to any of the liabilities of Borrowers or of such other
         obligor, guarantor, endorser, or surety which Bank may choose, subject,
         however, to the rights of Sponsor to bring a separate action for any
         breach of the Operative Documents pursuant to Section 9.10.

9.4      Additional Actions.

         Subject to Section 9.10, Sponsor hereby consents and agrees that the
         Bank may at any time or times, either with or without consideration,
         surrender, release or receive any property or other Collateral of any
         kind or nature whatsoever held by it or for its account securing any
         Loans or other Guaranteed Obligations, or substitute any Collateral so
         held by Bank for other Collateral of like or different kind, without
         notice to or further consent

                                       27
<PAGE>   29

         from Sponsor, and such surrender, receipt, release or substitution
         shall not in any way affect the obligations of Sponsor hereunder.
         Subject to Section 9.10, Bank shall have full authority to adjust,
         compromise, and receive less than the amount due upon any such
         Collateral, and may enter into any accord and satisfaction agreement
         with respect to the same as Bank may deem advisable without affecting
         the obligations of Sponsor hereunder. Bank shall be under no duty to
         undertake to collect upon such Collateral or any part thereof, and
         Sponsor's obligations hereunder shall not be affected by Bank's alleged
         negligence or mistake in judgment in handling, disposing of, obtaining,
         or failing to collect upon or perfect a security interest in, any such
         Collateral.

9.5      Additional Waivers.

         Sponsor hereby waives presentment, demand, protest, and notice of
         dishonor of any of the liabilities guaranteed hereby. Guarantor hereby
         further waives and agrees not to assert or take advantage of (a) the
         defense of the statute of limitations in any action hereunder or for
         the collection of the indebtedness or the performance of any obligation
         hereby guaranteed; (b) any defense that may arise by reason of the
         incapacity, lack of authority, death or disability of Guarantor or any
         other person or entity, or the failure of Bank to file or enforce a
         claim against the estate (either in administration, bankruptcy, or any
         other proceeding) of Borrower or any other person or entity; (c) any
         defense based on the failure of Bank to give notice of the existence,
         creation or incurring of any new or additional indebtedness or
         obligation or of any action or non-action on the part of any other
         person whomsoever, in connection with any obligation hereby guaranteed;
         (d) any defense based upon an election of remedies by Bank which
         destroys or otherwise impairs any subrogation rights of Guarantor or
         the right of Guarantor to proceed against Borrower for reimbursement,
         or both; (e) notwithstanding the application of Official Code of
         Georgia Annotated ss. 10-7-24, any defense based upon failure of Bank
         to commence an action against Borrower; (f) any duty on the part of
         Bank to disclose to Guarantor any facts it may now or hereafter know
         regarding Borrower; (g) any and all other notices whatsoever to which
         Guarantor might otherwise be entitled except as otherwise expressly
         required under this Agreement; (k) any defense based on lack of due
         diligence by Bank in collection, protection or realization upon any
         collateral securing the indebtedness evidenced by the Note; (l) any
         defense based on the failure of Bank to comply with or satisfy any
         obligations, agreements or covenants of Bank under this Agreement; and
         (m) any other legal or equitable defenses whatsoever to which Guarantor
         might otherwise be entitled. Bank shall not have any duty or obligation
         (i) to proceed or exhaust any remedy against any Borrower, any other
         obligor, guarantor, endorser, or surety on any Loans or other
         Guaranteed Obligations, or any other security held by Bank for any
         Loans or other Guaranteed Obligations, or (ii) to give any notice
         whatsoever to Borrowers, Sponsor, or any other obligor, guarantor,
         endorser, or surety on any Loans or other Guaranteed Obligations,
         before bringing suit, exercising rights to any such security or
         instituting proceedings of any kind against Sponsor, any Borrower, or
         any of them, and Sponsor hereby waives any requirement for such actions
         by Bank. Upon default by any Borrower and Bank's demand to Sponsor
         hereunder, Sponsor shall be held and bound to Bank directly as
         principal debtor in respect of the payment of the amounts hereby
         guaranteed, such liability of Sponsor being joint and several with each
         Borrower and all other obligors, guarantors, endorsers and sureties on
         the Loans or other Guaranteed Obligations, subject, however, to the
         rights of Sponsor to bring a separate action for any

                                       28
<PAGE>   30

         breach of the Operative Documents pursuant to Section 9.10.

9.6      Postponement of Obligations.

         Until the Loan and other Guaranteed Obligations of any Borrower to the
         Bank have been paid in full (i) all present and future indebtedness of
         such Borrower to Sponsor (the "Subordinated Debt") is hereby postponed
         to the present and future indebtedness of such Borrower to Bank, and
         all monies received from such Borrower or for its account by Sponsor
         with respect to such Subordinated Debt shall be received in trust for
         Bank, and promptly upon receipt, shall be paid over to Bank in
         accordance herewith until such Borrower's indebtedness to Bank is fully
         paid and satisfied, all without prejudice to and without in any way
         affecting the obligations of Sponsor hereunder; provided that unless a
         Loan Default or Loan Payment Default has occurred and is continuing,
         the Sponsor may accept and retain any payments made by any Borrower to
         the Sponsor in the ordinary course of business, and (ii) Sponsor shall
         not have any rights of subrogation or otherwise to participate in any
         security held by the Bank for any Loan to such Borrower or any other
         Guaranteed Obligations arising therefrom, and Sponsor hereby waives
         such rights until such time as such Loan and other Guaranteed
         Obligations have been paid in full to the Bank (whether by repurchase
         by the Sponsor, pursuant to this Article 10 or otherwise).

9.7      Effect on Additional Guaranties.

         The obligations of the Sponsor pursuant to this Article 10 are in
         addition to, and are not intended to supersede or be a substitute for
         any other guarantee, suretyship agreement, or instrument which Bank may
         hold in connection with any Loans or other Guaranteed Obligations.

9.8      Reliance on Guaranty and Purchase Obligation; Disclaimer of Liability.

         Sponsor expressly acknowledges and agrees that the Bank, in making its
         credit decision with regard to the funding of the Loans, will rely
         solely upon the guaranty and purchase obligation of Sponsor set forth
         above and in Article 10 and that the Bank is not under any obligation
         or duty to perform any credit analysis or investigation with regard to
         the creditworthiness of any Borrower. In addition, the Bank expressly
         disclaims any responsibility or liability for the authenticity of
         signatures on any of the Loan Documents (other than the Bank's), the
         authority of the Persons executing the Loan Documents (other than the
         Bank) or the enforceability or compliance with laws of any of the Loan
         Documents.

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

                                       29
<PAGE>   31

         ANY ENTITY PRIMARILY OR SECONDARILY LIABLE FOR ANY LOAN, ANY LACK OF
         ENFORCEABILITY OF ANY LOAN DOCUMENT, ANY LAW, REGULATION, OR ORDER OF
         ANY JURISDICTION AFFECTING ANY LOAN OR LOAN DOCUMENT OR THE RIGHTS OF
         THE HOLDER THEREOF, ANY CHANGE IN THE CONDITION OR PROSPECTS OF ANY
         BORROWER, INCLUDING WITHOUT LIMITATION, INSOLVENCY, BANKRUPTCY,
         REORGANIZATION OR SIMILAR PROCEEDING, OR ANY OTHER CIRCUMSTANCE WHICH
         MIGHT, BUT FOR THE PROVISIONS OF THIS PARAGRAPH, CONSTITUTE A LEGAL OR
         EQUITABLE DISCHARGE OF SPONSOR'S OBLIGATIONS HEREUNDER. SPONSOR'S
         OBLIGATIONS HEREUNDER SHALL NOT BE AFFECTED BY ANY SET-OFF OR CLAIM
         WHICH IT MIGHT HAVE AGAINST THE BANK, WHETHER ARISING OUT OF THIS
         AGREEMENT OR OTHERWISE, BUT SUBJECT TO SECTION 9.10 BELOW.

9.9      Reinstatement of Obligations.

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

9.10     Right to Bring Separate Action.

         Nothing contained in this Article 9 shall be construed to affect any
         other right that Sponsor may otherwise have under this Agreement, or
         any Operative Document or Loan Documents, at law or in equity to
         institute an action or assert a claim against the Bank based upon a
         breach of Bank's obligations set forth in the Operative Documents or
         Loan Documents or to assert a compulsory counterclaim with respect
         thereto and any waiver of notice or other matter set forth in this
         Article 9 shall not affect Sponsor's right to seek damages arising from
         the failure of the Bank to give such notice otherwise required by the
         terms of the Operative Documents or Loan Documents.

9.11     Subordination of Liens.

         The Sponsor hereby subordinates the lien and priority of the Sponsor's
         existing and future liens and other interests, if any, in and to the
         Collateral to the Bank's existing and future interest in the Collateral
         under the Loan Documents notwithstanding the time of attachment of the
         interests of the Sponsor or the Bank or the time the Loan Indebtedness
         or the Subordinated Debt is incurred. Notwithstanding anything to the
         contrary contained in this Agreement, under applicable law or
         otherwise, in the event that the liens of the Bank are at any time
         unperfected with respect to any or all of the Collateral, the lack of
         perfection by the Bank as to any such Collateral shall not affect the
         validity, enforceability or priority of any lien on the Collateral in
         favor of the Sponsor. In any such event, the liens of the Sponsor shall
         have priority over any and all other Liens in favor of any third party
         with respect to the Collateral (including, but not limited to any
         trustee under the Bankruptcy Code) and the Sponsor shall be, and is
         hereby constituted,

                                       30
<PAGE>   32

         as the Bank's agent and bailee for purposes of perfection of the Liens
         of the Bank in the Collateral such that the Lien in favor of the
         Sponsor shall be held by the Sponsor for the benefit of the Bank and
         the proceeds of any disposition of the Collateral of any Borrower shall
         be and are in all respects subject to the priority of right to payment
         and satisfaction of first, the Loan Indebtedness of such Borrower and
         then, the Subordinated Debt with respect to such Borrower. The lien
         priorities provided in this Section shall not be altered or otherwise
         affected by any amendment, modification, supplement, extension,
         renewal, restatement or refinancing of either the applicable Loan
         Indebtedness or the Subordinated Debt, nor by any action or inaction
         which either the Bank or the Sponsors may take or fail to take in
         respect of the Collateral, except as otherwise provided above in this
         subsection.

9.12     Exercise of Remedies With Respect to Collateral.

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

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

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

9.13     Rights of Sponsor Upon Payment; Cooperation By Bank.

                                       31
<PAGE>   33

         Upon receipt by the Bank of payment in full of the Loan Indebtedness of
         a Defaulted Loan by Sponsor, Sponsor shall be subrogated to the rights
         of the Bank with respect to the Loan and the Bank shall be deemed to
         have assigned to Sponsor, and Sponsor shall, to the extent permitted by
         applicable law, automatically, immediately and without further action
         by any Person, be entitled to, all rights and remedies that the Bank
         may have had against the Defaulted Borrower and any other Persons
         primarily or secondarily liable on such Defaulted Loan, including
         without limitation the right to resort to any and all Collateral which
         secures the Defaulted Loan. The Bank agrees that, upon receipt of
         payment in full of the Loan Indebtedness, the Bank shall:

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

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

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

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

                              10. INDEMNIFICATION

10.1     Indemnification.

                  (a) In addition to the other rights of the Bank hereunder,
         Sponsor hereby agrees to protect, indemnify and save harmless the Bank
         and the officers, directors, shareholders, employees, agents and
         representatives of the Bank (each an "Indemnified Party") from and
         against any and all liabilities, obligations, losses, damages,
         penalties, actions, judgments, suits, costs (including, without
         limitation, reasonable attorney's fees and costs actually incurred),
         expenses or disbursements of any kind or nature whatsoever, whether
         direct, indirect, consequential or incidental, with respect to or in
         connection with or arising out of (i) the execution and delivery of
         this Agreement, any other Operative Document or any agreement or
         instrument contemplated hereby or thereby, including without
         limitation, the Loan Documents, the performance by the parties hereto
         or thereto of their respective obligations hereunder or thereunder or
         the consummation of the transactions contemplated hereby, (ii) the
         making or administration of the Loan Commitments, the Loans or any of
         them, including any violation of federal or state usury or other laws,
         provided that with respect to clauses (i) and (ii), Sponsor shall have
         no obligation to indemnify the Bank for more than one (1) counsel's
         reasonable fees and expenses, (iii) the enforcement, performance and
         administration of this Agreement or the Loan Documents or any powers
         granted to the Bank hereunder or under any Loan

                                       32
<PAGE>   34

         Documents, (iv) any misrepresentation of the Sponsor hereunder, (v) any
         matter arising pursuant to any Environmental Laws as a result of the
         Collateral or (vi) any actual or prospective claim, litigation,
         investigation or proceeding relating to any of the foregoing, whether
         based on contract, tort or any other theory, whether or not the
         Indemnified Party is a named party thereto, except to the extent that
         such losses, claims, damages, liabilities or related expenses are
         determined by a court of competent jurisdiction by final and
         nonappealable judgment to have resulted from the gross negligence or
         willful misconduct of such Indemnified Party or arise solely from the
         nonpayment of any Loan Indebtedness notwithstanding the performance by
         Sponsor of all of its obligations under the Operative Documents
         relating to such Loan Indebtedness.

                  (b) Without limiting the generality of the foregoing, and
         separate and apart from any obligation of Sponsor pursuant to Article
         9, Sponsor agrees to indemnify and hold harmless each Indemnified Party
         from and against, and on demand will pay or reimburse any Indemnified
         Party for, any and all (i) liabilities arising from a breach of any
         representation or warranty made by Sponsor hereunder (whether or not
         Sponsor's obligations under Article 9 have been satisfied), (ii) any
         breach by Sponsor of its agreements with the Borrowers, (iii) any
         overadvance to any Borrower caused by the transfer of ACH transfer
         instructions from the ATAC System to the Bank by Sponsor resulting in
         aggregate advances to such Borrower in excess of the Loan Commitment to
         such Borrower.

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

10.2     Notice Of Proceedings; Right To Defend.

                  (a) Any Person with an indemnification claim (or potential
         claim) pursuant to Section 10.1 ("Potential Indemnitee") agrees to
         notify Sponsor (the "Potential Indemnitor") in writing within a
         reasonable time after receipt by it of written notice of the
         commencement of any administrative, legal or other proceeding, suit or
         action by a Person (other than Indemnitee or an affiliate thereof), if
         a claim for indemnification may be made by the Potential Indemnitee
         against the Potential Indemnitor under this Article 11.

                  (b) Following receipt by the Potential Indemnitor of any such
         notice from a Potential Indemnitee, (an "Indemnity Notice"), the
         Potential Indemnitor shall be entitled at its own cost and expense to
         investigate and participate in the proceeding, suit or action referred
         to in the Indemnity Notice. At such time as the Potential Indemnitor
         shall have acknowledged in writing to the Potential Indemnitee that it
         will pay any judgment, damages, or losses incurred by the Potential
         Indemnitee in the proceeding, suit or action referred to in the
         Indemnity Notice other than those for gross negligence or willful
         misconduct on the part of the Potential Indemnitee (at which time the
         "Potential Indemnitor" shall be deemed to be the "Indemnitor" and the
         "Potential Indemnitee" shall be deemed to be the "Indemnitee"), the
         Indemnitor shall be entitled, to the extent that it shall desire, to
         assume the defense of such proceeding, suit or action, with counsel
         reasonably satisfactory to the Indemnitee. If the Indemnitor shall so
         assume the defense of such proceeding, suit or action, the Indemnitor
         shall conduct such defense with due diligence and at its own cost and
         expense.

                                       33
<PAGE>   35

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

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

10.3     Third Party Beneficiaries.

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

                          11. SURVIVAL OF LOAN FACILITY

         The terms of this Loan Facility Agreement shall survive the termination
of the Commitment hereunder and the termination of any Loan Commitment
established pursuant the terms hereof until the indefeasible payment in full of
each of the Loans outstanding hereunder and Article 10 shall survive the
termination of this Agreement upon such repayment.

                            12. CONDITIONS PRECEDENT

         The effectiveness of this Agreement and the amendment and restatement
of the Existing Facility Agreement, as well as the obligation of the Bank to
establish the initial Loan Commitment pursuant to this Agreement, is subject to
satisfaction of the following conditions:

12.1     Receipt of Documents.

                                       34
<PAGE>   36

         The Bank shall have received the following, each dated as of the
Effective Date, in form and substance satisfactory to the Bank:

                  (a) Duly executed counterparts of this Agreement.

                  (b) Duly executed counterparts of the Guaranty Agreement.

                  (c) A duly executed closing certificate of Sponsor, in form
         and substance satisfactory to the Bank.

                  (d) A duly executed certificate of Sponsor identifying the
         Authorized Signatories;

                  (e) Copies of the organizational papers of Guarantor,
         certified as true and correct by the Secretary of State of its
         respective State of incorporation, and certificates from the Secretary
         of State of such State of incorporation certifying Sponsor's good
         standing as a corporation in such State.

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

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

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

                               13. MISCELLANEOUS

13.1     Notices.

         All notices, requests and other communications to any party hereunder
         shall be in writing (including bank wire, telex, telecopy or similar
         teletransmission or writing) and shall be given to such party at its
         address or applicable teletransmission number set forth on the
         signature pages hereof, or such other address or applicable
         teletransmission number as such party may hereafter specify by notice
         to the Bank and Sponsor. Each such notice, request or other
         communication shall be effective (i) if given by telex, when such telex
         is transmitted to the telex number specified in this Section and the
         appropriate answer back is received, (ii) if given by mail, 72 hours
         after such communication is deposited in the mails with first class
         postage prepaid, addressed as aforesaid, (iii) if given by telecopy,
         when such telecopy is transmitted to the telecopy number specified in
         this Section and the appropriate confirmation is received, or (iv) if
         given by any other means (including,

                                       35
<PAGE>   37

         without limitation, by air courier), when delivered or received at the
         address specified in this Section; provided that notices to the Bank
         shall not be effective until received.

13.2     Amendments, Etc.

         No amendment or waiver of any provision of this Agreement or the other
         Operative Documents, nor consent to any departure by any Credit Party
         therefrom, shall in any event be effective unless the same shall be in
         writing and signed by the Bank (and in the case of any amendment, the
         applicable Credit Party), and then such waiver or consent shall be
         effective only in the specific instance and for the specific purpose
         for which given. Notwithstanding the foregoing, no amendment, waiver or
         consent shall, unless in writing and signed by the Bank affect the
         rights or duties of the Bank under this Agreement or under any other
         Operative Document or Loan Document.

13.3     No Waiver; Remedies Cumulative.

         No failure or delay on the part of the Bank in exercising any right or
         remedy hereunder or under any other Operative Document, and no course
         of dealing between any Credit Party and the Bank shall operate as a
         waiver thereof, nor shall any single or partial exercise of any right
         or remedy hereunder or under any other Operative Document preclude any
         other or further exercise thereof or the exercise of any other right or
         remedy hereunder or thereunder. The rights and remedies herein
         expressly provided are cumulative and not exclusive of any rights or
         remedies which the Bank would otherwise have. No notice to or demand on
         any Credit Party not required hereunder or under any other Operative
         Document in any case shall entitle any Credit Party to any other or
         further notice or demand in similar or other circumstances or
         constitute a waiver of the rights of the Bank to any other or further
         action in any circumstances without notice or demand.

13.4     Payment of Expenses, Etc. Sponsor shall:

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

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

                                       36
<PAGE>   38

13.5     Right of Setoff.

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

13.6     Benefit of Agreement; Assignments; Participations.

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

                  (b) The Bank may grant a participation in the Commitment and
         the Loans held by it to any financial institution, provided, however,
         that no participant shall have any direct rights hereunder.

                  (c) The Bank may make, carry or transfer Loans at, to or for
         the account of, any of its branch offices or the office of an Affiliate
         of the Bank.

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

13.7     Governing Law; Submission to Jurisdiction.

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

                  (B) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
         AGREEMENT OR ANY OTHER OPERATIVE DOCUMENT MAY BE BROUGHT IN THE
         SUPERIOR COURT OF FULTON COUNTY, GEORGIA, OR ANY OTHER COURT OF THE
         STATE OF GEORGIA OR OF THE UNITED STATES OF AMERICA FOR THE NORTHERN
         DISTRICT OF GEORGIA, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
         SPONSOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY,
         GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
         COURTS. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE TRIAL BY JURY, AND
         SPONSOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT
         LIMITATION, ANY OBJECTION

                                       37
<PAGE>   39

         TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS,
         WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION
         OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS.

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

13.8     Counterparts.

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

13.9     Severability.

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

13.10    Independence of Covenants.

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

13.11    No Joint Venture.

         Nothing in this Agreement or any of the Loan Documents shall be
         construed as constituting Sponsor and the Bank as partners or joint
         venturers or as creating the relationship of employer and employee,
         master and servant, principle and agent, or franchisor or franchisee
         between Sponsor and the Bank. Neither Sponsor nor Bank shall have any
         right or authority to bind the other party or to assume or create any
         obligation or responsibility, express or implied, on behalf of the
         other party or in the other party's name. All rights, duties and
         obligations under this Agreement and the Operative Documents are
         exclusively for the benefit of Sponsor and the Bank, as the case may
         be, and shall not be deemed to affect any agreement between either of
         such parties and any third party (including, without limitation, any
         Borrower).

13.12    Repurchase Right.

                                       38
<PAGE>   40

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

13.13    Effect on Existing Loans and Loan Commitments; Execution of New Loan
         Documents.

         Upon the Effective Date all loan commitments established by the Bank in
         favor of certain Franchisee Owners and loans made pursuant to such loan
         commitments, all as more particularly described on Schedule 13.13 (such
         loan commitments described on Schedule 13.13 shall be referred to
         herein as the "Prior Loan Commitments" and such loans referred to in
         Schedule 13.13 shall be referred to herein as the "Prior Loans") prior
         to the Effective Date of this Agreement shall be deemed to be Loans
         Commitments and Loans outstanding pursuant to the Commitment. Sponsor
         and Bank hereby acknowledge and agree that the Prior Loan Commitments
         and Prior Loans shall be subject in all respects to terms and
         provisions of this Agreement.

13.14    Confidentiality.

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

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

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

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

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

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

                                       39
<PAGE>   41

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

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

                           (viii)   such information was in the possession of
                  such Person or such Person's affiliates without obligation of
                  confidentiality prior to the Borrower furnishing it to such
                  Person; or

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

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

13.15    Headings Descriptive; Entire Agreement.

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

13.16    Time.  Time is of the essence of this Agreement and the performance of
         all agreements and covenants described herein.

                                       40
<PAGE>   42

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

Address for Notices:                      AARON RENTS, INC.

309 East Paces Ferry Road, NE             By:
Atlanta, Georgia  30305                      --------------------------------
Attn: Gilbert L. Danielson                     Gilbert L. Danielson
Telecopy: 404-240-6584                         Executive Vice President and
                                               Chief Financial Officer

                                          Attest:
                                                 ----------------------------
                                                 Name:
                                                      -----------------------
                                                 Title:
                                                       ----------------------

                                                 [Corporate Seal]

Address for Notices:                      SOUTHTRUST BANK,
                                          an Alabama Banking Corporation

600 W. Peachtree Street, N.E.
One Georgia Center - 27th Floor
Atlanta, Georgia  30308
Attention: Ron Fontenot, V.P.             By:
Telecopy No.: (404) 724-3716                 --------------------------------
                                          Name:
                                               ------------------------------
                                          Title:
                                                -----------------------------

                                       41
<PAGE>   43

EXHIBIT A:  COMMITMENT

EXHIBIT B:  CORPORATE AUTHORIZATION

EXHIBIT C:  LOAN REQUEST

EXHIBIT D:  FRANCHISEE GUARANTY

EXHIBIT E:  FUNDING APPROVAL NOTICE

EXHIBIT F:  LOAN COMMITMENT -- BORROWERS

EXHIBIT G:  MASTER NOTE

EXHIBIT H:  PLEDGE AGREEMENT

EXHIBIT N:  FRANCHISE GUARANTY

EXHIBIT O:  RESERVED

                                       42
<PAGE>   44

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                               <C>
1.            DEFINITIONS.....................................................................................     1
      1.1     Definitions. In addition to the other terms defined herein, the following terms used herein
              shall have the meanings herein specified (such meanings to be equally applicable to both the
              singular and plural forms of the terms defined).................................................     1
      1.2     Accounting Terms and Determination..............................................................     9
      1.3     Other Definitional Terms........................................................................     9
      1.4     Exhibits and Schedules..........................................................................     9

2.            LOAN FACILITY...................................................................................     9
      2.1     Establishment of the Commitment; Loans; Closing Fee.............................................     9
      2.2     Funding of Loans; Loan Payment Dates............................................................    11
      2.3     Prepayment......................................................................................    12
      2.4     Default Interest................................................................................    12
      2.5     Voluntary Reduction of the Unutilized Commitment................................................    13
      2.6     Late Payment Fees; Servicing Fee; Minimum Bank Interest; Calculation of Interest and Fees.......    13
      2.7     Wind-Down Events................................................................................    14
      2.8     Reserve Requirements; Change in Circumstances; Change in Lending Offices........................    14
      2.9     Payments........................................................................................    15

3.            BANK'S SERVICING OBLIGATIONS; DISTRIBUTION OF PAYMENTS..........................................    15
      3.1     Servicing of Loans..............................................................................    15
      3.2     Application of Payments.........................................................................    16
      3.3     Servicing Reports...............................................................................    17
      3.4     Sponsor Instructions............................................................................    17
      3.5     Amendments and Additional Loan Documents........................................................    17
      3.6     Assignment of Loans.............................................................................    17

4.            LOAN DEFAULT; RIGHT TO MAKE GUARANTY DEMAND.....................................................    18
      4.1     Notice of Loan Defaults.........................................................................    18
      4.2     Waiver or Cure By The Sponsor...................................................................    18
      4.3     Defaulted Loan Guaranty Demand..................................................................    19
      4.4     No Waiver or Cure Available.....................................................................    19

5.            REPRESENTATIONS AND WARRANTIES..................................................................    19
      5.1     Organization and Qualification..................................................................    19
      5.2     Sponsor's Powers................................................................................    19
      5.3     Enforceability of Agreement and Other Operative Documents.......................................    20
      5.4     Statutes, Judgments.............................................................................    20
      5.5     No Credit Event; Unmatured Credit Event or Change of Control....................................    20
      5.6     Possession of Franchises, Licenses, Etc.; Laws..................................................    20
      5.7     Contingent Liabilities..........................................................................    20
      5.8     Compliance with Laws............................................................................    20
      5.9     Representations and Warranties with Respect to Specific Loans...................................    21

6.            AFFIRMATIVE COVENANTS...........................................................................    21
      6.1     Financial Statements, Reports and Other Financial Data..........................................    22
      6.2     Payment.........................................................................................    23
</TABLE>

                                        i
<PAGE>   45

<TABLE>
<S>                                                                                                               <C>
      6.3     Notice of Credit Event, Unmatured Credit Event..................................................    23
      6.4     Corporate Existence.............................................................................    23
      6.5     Compliance with Laws, Etc.......................................................................    23

7.            NEGATIVE COVENANTS..............................................................................    24

8.            CREDIT EVENTS AND REMEDIES......................................................................    24

9.            GUARANTY........................................................................................    26
      9.1     Unconditional Guaranty..........................................................................    26
      9.2     Continuing Guaranty.............................................................................    27
      9.3     Waivers.........................................................................................    27
      9.4     Additional Actions..............................................................................    27
      9.5     Additional Waivers..............................................................................    28
      9.6     Postponement of Obligations.....................................................................    29
      9.7     Effect on Additional Guaranties.................................................................    29
      9.8     Reliance on Guaranty and Purchase Obligation; Disclaimer of Liability...........................    29
      9.9     Reinstatement of Obligations....................................................................    30
      9.10    Right to Bring Separate Action..................................................................    30
      9.11    Subordination of Liens..........................................................................    30
      9.12    Exercise of Remedies With Respect to Collateral.................................................    31
      9.13    Rights of Sponsor Upon Payment; Cooperation By Bank.............................................    31

10.           INDEMNIFICATION.................................................................................    32
      10.1    Indemnification.................................................................................    32
      10.2    Notice Of Proceedings; Right To Defend..........................................................    33
      10.3    Third Party Beneficiaries.......................................................................    34

11.           SURVIVAL OF LOAN FACILITY.......................................................................    34

12.           CONDITIONS PRECEDENT............................................................................    34
      12.1    Receipt of Documents............................................................................    34

13.           MISCELLANEOUS...................................................................................    35
      13.1    Notices.........................................................................................    35
      13.2    Amendments, Etc.................................................................................    36
      13.3    No Waiver; Remedies Cumulative..................................................................    36
      13.4    Payment of Expenses, Etc.  Sponsor shall:.......................................................    36
      13.5    Right of Setoff.................................................................................    37
      13.6    Benefit of Agreement; Assignments; Participations...............................................    37
      13.7    Governing Law; Submission to Jurisdiction.......................................................    37
      13.8    Counterparts....................................................................................    38
      13.9    Severability....................................................................................    38
      13.10   Independence of Covenants.......................................................................    38
      13.11   No Joint Venture................................................................................    38
      13.12   Repurchase Right................................................................................    38
      13.13   Effect on Existing Loans and Loan Commitments; Execution of New Loan Documents..................    39
      13.14   Confidentiality.................................................................................    39
      13.15   Headings Descriptive; Entire Agreement..........................................................    40
</TABLE>

                                       ii<PAGE>   1
                                                                   EXHIBIT 10(m)

                                 LOAN AGREEMENT

                                     between

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

               FORT BEND COUNTY INDUSTRIAL DEVELOPMENT CORPORATION

                                       and

                                AARON RENTS, INC.

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

                                   relating to

                                   $4,200,000
               FORT BEND COUNTY INDUSTRIAL DEVELOPMENT CORPORATION
                      INDUSTRIAL DEVELOPMENT REVENUE BONDS
                    (AARON RENTS, INC. PROJECT), SERIES 2000

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

NOTE:    CERTAIN RIGHTS OF THE FORT BEND COUNTY INDUSTRIAL DEVELOPMENT
         CORPORATION UNDER THIS LOAN AGREEMENT HAVE BEEN ASSIGNED TO, AND ARE
         SUBJECT TO A SECURITY INTEREST IN FAVOR OF, FIRST UNION NATIONAL BANK,
         AS TRUSTEE, UNDER A TRUST INDENTURE OF EVEN DATE HEREWITH, AS AMENDED
         OR SUPPLEMENTED FROM TIME TO TIME. INFORMATION CONCERNING SUCH SECURITY
         INTEREST MAY BE OBTAINED FROM THE TRUSTEE AT FIRST UNION NATIONAL BANK,
         HOUSTON, TEXAS, ATTENTION: CORPORATE TRUST DEPARTMENT.

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

                           DATED AS OF OCTOBER 1, 2000

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----

<S>                                                                                                             <C>
ARTICLE I         DEFINITIONS AND RULES OF CONSTRUCTION......................................................     1
         Section 1.1   DEFINITIONS...........................................................................     1
         Section 1.2   RULES OF CONSTRUCTION.................................................................     9

ARTICLE II        REPRESENTATIONS............................................................................    10
         Section 2.1   REPRESENTATIONS BY THE ISSUER.........................................................    10
         Section 2.2   REPRESENTATIONS, WARRANTIES AND COVENANTS BY THE COMPANY..............................    11

ARTICLE III.......PERMITS AND APPROVALS; COMPANY CONSENT TO ASSIGNMENT.......................................    18
         Section 3.1   APPROVALS REQUIRED FOR THE PROJECT....................................................    18
         Section 3.2   COMPANY CONSENT TO ASSIGNMENT OF AGREEMENT AND EXECUTION OF INDENTURE.................    18

ARTICLE IV        ISSUANCE OF THE BONDS......................................................................    19
         Section 4.1   AGREEMENT TO ISSUE THE BONDS..........................................................    19
         Section 4.2   DISBURSEMENTS FROM THE PROJECT FUND...................................................    19
         Section 4.3   CLOSEOUT OF THE PROJECT FUND..........................................................    19
         Section 4.4   DISPOSITION OF THE BALANCE IN THE PROJECT FUND........................................    19
         Section 4.5   COMPANY REQUIRED TO PAY IN EVENT PROJECT FUND INSUFFICIENT............................    19
         Section 4.6   NO THIRD PARTY BENEFICIARY............................................................    20

ARTICLE V         LOAN BY THE ISSUER TO THE..................................................................    21
         Section 5.1   LOAN BY THE ISSUER; REPAYMENT.........................................................    21
         Section 5.2   PAYMENT OBLIGATIONS OF THE COMPANY....................................................    21
         Section 5.3   SECURITY FOR PAYMENTS UNDER THE LOAN AGREEMENT........................................    22
         Section 5.4   COMPANY'S PERFORMANCE UNDER INDENTURE.................................................    22
         Section 5.5   NO SET-OFF............................................................................    22
         Section 5.6   PREPAYMENTS...........................................................................    22
         Section 5.7   LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT..........................................    22

ARTICLE VI        MAINTENANCE AND MODIFICATIONS; TAXES AND UTILITY...........................................    23
         Section 6.1   MAINTENANCE AND MODIFICATION OF THE PROJECT BY THE COMPANY............................    23
         Section 6.2   TAXES AND UTILITY CHARGES.............................................................    23
         Section 6.3   CASUALTY AND LIABILITY INSURANCE REQUIRED.............................................    24
         Section 6.4   GENERAL REQUIREMENTS APPLICABLE TO INSURANCE..........................................    25
         Section 6.5   ADVANCES BY THE ISSUER OR THE TRUSTEE.................................................    25
         Section 6.6   COMPANY TO MAKE UP DEFICIENCY IN INSURANCE COVERAGE...................................    26
         Section 6.7   EMINENT DOMAIN........................................................................    26
         Section 6.8   APPLICATION OF NET PROCEEDS OF INSURANCE AND EMINENT DOMAIN...........................    26
         Section 6.9   PARTIES TO GIVE NOTICE................................................................    27
         Section 6.10  NO WARRANTY OF CONDITION OR SUITABILITY BY ISSUER.....................................    27
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>                                                                                                              <C>
ARTICLE VII       SPECIAL COVENANTS..........................................................................    29
         Section 7.1   ACCESS TO THE PROJECT AND INSPECTION..................................................    29
         Section 7.2   FURTHER ASSURANCES AND CORRECTIVE INSTRUMENTS.........................................    29
         Section 7.3   RECORDING AND FILING; OTHER INSTRUMENTS...............................................    29
         Section 7.4   ARBITRAGE COVENANTS: NOTICE OF EVENT OF TAXABILITY....................................    30
         Section 7.5   NO PROHIBITED PAYMENTS................................................................    33
         Section 7.6   PERMITTED INVESTMENTS: PROHIBITED PAYMENTS............................................    33
         Section 7.7   INVESTMENT IN TAX-EXEMPT SECURITIES...................................................    33
         Section 7.8   ADMINISTRATIVE EXPENSES...............................................................    33
         Section 7.9   INDEMNITY AGAINST CLAIMS..............................................................    34
         Section 7.10  INDEMNITY OF ISSUER AND TRUSTEE.......................................................    34
         Section 7.11  ADDITIONAL INFORMATION................................................................    35
         Section 7.12  DEFAULT CERTIFICATES..................................................................    36
         Section 7.13  OBSERVE LAWS..........................................................................    36

ARTICLE VIII      ASSIGNMENT, LEASING AND SELLING............................................................    37
         Section 8.1   ASSIGNMENT OF THIS LOAN AGREEMENT OR LEASE OR SALE OF THE PROJECT BY THE COMPANY......    37
         Section 8.2   RESTRICTIONS ON TRANSFER OF THE ISSUER'S RIGHTS.......................................    37
         Section 8.3   ASSIGNMENT BY THE ISSUER..............................................................    37

ARTICLE IX        EVENTS OF DEFAULT AND REMEDIES.............................................................    38
         Section 9.1   EVENTS OF DEFAULT DEFINED.............................................................    38
         Section 9.2   REMEDIES ON DEFAULT...................................................................    39
         Section 9.3   APPLICATION OF AMOUNTS REALIZED IN ENFORCEMENT OF REMEDIES............................    39
         Section 9.4   NO REMEDY EXCLUSIVE...................................................................    39
         Section 9.5   AGREEMENT TO PAY ATTORNEYS' FEES AND EXPENSES.........................................    40
         Section 9.6   CORRELATIVE WAIVERS...................................................................    40

ARTICLE X         PREPAYMENTS................................................................................    41
         Section 10.1  OPTIONAL PREPAYMENTS..................................................................    41
         Section 10.2  MANDATORY PREPAYMENTS.................................................................    41
         Section 10.3  OTHER MANDATORY PREPAYMENTS...........................................................    41

ARTICLE XI        REBATE PROVISIONS..........................................................................    43
         Section 11.1  CREATION OF THE REBATE FUND...........................................................    43
         Section 11.2  DETERMINATIONS, NOTICES AND RECORDS OF REBATE AMOUNT..................................    43
         Section 11.3  INVESTMENT EARNINGS ON BOND FUNDS.....................................................    43
         Section 11.4  FILING OF REQUIRED REBATE.............................................................    44

ARTICLE XII       MISCELLANEOUS..............................................................................    45
         Section 12.1  REFERENCES TO THE BONDS INEFFECTIVE AFTER BONDS PAID..................................    45
         Section 12.2  NO IMPLIED WAIVER.....................................................................    45
         Section 12.3  ISSUER REPRESENTATIVE.................................................................    45
         Section 12.4  COMPANY REPRESENTATIVE................................................................    45
</TABLE>

                                       ii
<PAGE>   4

<TABLE>
         <S>                                                                                                     <C>
         Section 12.5  NOTICES...............................................................................    45
         Section 12.6  IF PAYMENT OR PERFORMANCE DATE IS OTHER THAN A BUSINESS DAY...........................    46
         Section 12.7  BINDING EFFECT........................................................................    46
         Section 12.8  SEVERABILITY..........................................................................    46
         Section 12.9  AMENDMENTS, CHANGES AND MODIFICATIONS.................................................    46
         Section 12.10 EXECUTION IN COUNTERPARTS.............................................................    46
         Section 12.11 APPLICABLE LAW........................................................................    46
         Section 12.12 EXPENSES..............................................................................    46
         Section 12.13 AMOUNTS REMAINING WITH THE TRUSTEE....................................................    47
         Section 12.14 REFERENCES TO THE CREDIT FACILITY ISSUER AND CREDIT FACILITY..........................    47
         Section 12.15 COVENANTS OF ISSUER NOT COVENANTS OF OFFICIALS INDIVIDUALLY...........................    47
         Section 12.16 NO PERSONAL LIABILITY.................................................................    47
         Section 12.17 LIMITED LIABILITY OF THE ISSUER.......................................................    48
</TABLE>

                                      iii
<PAGE>   5

                                 LOAN AGREEMENT

         This LOAN AGREEMENT, dated as of October 1, 2000 between THE FORT BEND
COUNTY INDUSTRIAL DEVELOPMENT CORPORATION (the "Issuer"), a political
subdivision duly organized and existing under the laws of the Constitution and
laws of the State of Texas (the "State") and AARON RENTS, INC. (the "Company"),
a Georgia corporation.

                                   WITNESSETH:

         WHEREAS, the Issuer is authorized and empowered by the provisions of
the Development Corporation Act of 1979, Article 5190.6, Texas Revised Civil
Statutes, as amended, (the "Act") to issue its special revenue bonds for the
purpose of financing projects (as defined in the Act) and to lend the proceeds
of revenue bonds upon terms and conditions as the Issuer may deem advisable; and

         WHEREAS, to obtain funds for such purposes the Issuer will issue and
sell its Fort Bend County Industrial Development Corporation Industrial
Development Revenue Bonds (Aaron Rents, Inc. Project), Series 2000 (the
"Bonds"), under and pursuant to the Act, to be secured by and contain such terms
and provisions as are set forth in that certain Trust Indenture (the
"Indenture") dated as of October 1, 2000 between the Issuer and First Union
National Bank, as Trustee (the "Trustee"), and the proceeds from the sale of the
Bonds shall be deposited with the Trustee and disbursed in the manner and for
the purposes set forth herein and in the Indenture, all as more fully provided
herein and therein; and

         NOW, THEREFORE, in consideration of the respective representations and
agreements contained herein, the parties hereto, recognizing that under the Act
this Loan Agreement shall not be a debt of the Issuer and neither the Issuer,
Fort Bend County (the "County"), the State nor any political subdivision
thereof, shall be liable thereon within the meaning of any constitutional
provision or statutory limitation, except from moneys received or to be received
under the provisions of this Loan Agreement and from the Credit Facility Issuer
under a Credit Facility (each as hereinafter defined) or derived from the
exercise of the rights of the Issuer thereunder, agree as follows:

<PAGE>   6

                                   ARTICLE I
                      DEFINITIONS AND RULES OF CONSTRUCTION

         SECTION 1.1       DEFINITIONS. In addition to words and terms elsewhere
defined in this Loan Agreement or in the Indenture, the following words and
terms shall have the following meanings:

         "Act" shall mean Development Corporation Act of 1979, Article 5190.6,
Texas Revised Civil Statutes, as amended, and other applicable provisions of
applicable law.

         "Administrative Expenses" shall mean the amounts payable pursuant to
Section 7.8 hereof by the Company to or for the account of the Issuer to provide
for payment of the costs and expenses incurred by the Issuer.

         "Affiliate" shall mean, with respect to any Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such Person. For the purposes of this definition, "control",
when used with respect to a 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.

         "Bank" shall initially mean First Union National Bank as issuer of the
Credit Facility.

         "Bond" or "Bonds" shall mean the Fort Bend County Industrial
Development Corporation Industrial Development Revenue Bonds (Aaron Rents, Inc.
Project), Series 2000, authorized to be issued pursuant to the Indenture,
including such Bonds issued in replacement for mutilated, destroyed, lost or
stolen Bonds pursuant to Section 212 of the Indenture, and any amendments and
supplements thereto, and any renewals and extensions thereof, permitted by the
Indenture.

         "Bond Documents" shall mean collectively the Indenture, the Bonds, this
Loan Agreement, the Letter of Credit Documents and the Remarketing Agreement.

         "Bond Resolution" shall mean the resolution adopted by the Issuer on
September 19, 2000, as supplemented, authorizing, among other things, the
execution and delivery of the Issuer Documents to be signed by the Issuer and
the issuance of the Bonds by the Issuer.

         "Bond Year" means a one-year period commencing on October 1 of each
year.

         "Business Day" means a day on which (a) banks located in each of the
cities in which the principal office of the Trustee, the Credit Facility Issuer
and the Remarketing Agent is located are not required or authorized by law or
executive order to close for business, and (b) The New York Stock Exchange is
not closed.

         "Capital Expenditures" shall have the meaning as specified in Section
2.2(j) hereof.

<PAGE>   7

         "Closing Date" means the date of the issuance and delivery of the
Bonds.

         "Code" shall mean the Internal Revenue Code of 1986, as amended.

         "Company" shall mean Aaron Rents, Inc., a Georgia corporation and any
surviving, resulting or transferee corporation or other entity.

         "Company Representative" shall mean any one of the persons at the time
designated to act on behalf of the Company by written certificate furnished to
the Trustee containing the specimen signatures of such persons and signed on
behalf of the Company.

         "Completion Date" shall mean the date of completion of the Project, as
that date shall be certified as provided in Section 4.3 hereof.

         "Computation Date" shall mean each Installment Computation Date and the
Final Computation Date.

         "Consistent Basis" shall mean, in reference to the application of
Generally Accepted Accounting Principles, that the accounting principles
observed in the period referred to are comparable in all material respects to
those applied in the preceding period, except as to any changes consented to by
the Trustee and the Credit Facility Issuer.

         "Construction," when used in connection with the Project, shall mean,
without limitation, the acquisition construction, installation, improving or
equipping of the Project.

         "Costs of the Project" shall mean all costs and allowances for the
acquisition, equipping and renovation of the Project which are permitted under
the Act and which include, but are not limited to, all capital costs of the
Project, including the following:

                  (1)      the acquisition, expansion and improving of the
         Project, including the acquisition of all machinery and equipment;

                  (2)      preparation of the plans and specifications for the
         Project (including any preliminary study or plan of the Project or any
         aspect thereof), any labor, services, materials and supplies used or
         furnished in the Construction of the Project, the construction and
         installation necessary to provide utility services or other services
         and all real and tangible personal property deemed necessary by the
         Company in connection with the Project;

                  (3)      the fees for architectural, engineering, supervisory
         and consulting services in connection with Construction of the Project;

                                       2
<PAGE>   8

                  (4)      to the extent they shall not be paid by a contractor,
         the premiums of all insurance and surety and performance bonds required
         to be maintained in connection with the Construction of the Project;

                  (5)      any fees and expenses incurred in connection with
         construction, perfection and protection of title to the Project;

                  (6) interest prior to and during the period until completion
         of construction of the Project; and

                  (7)      any administrative or other fees charged by the
         Issuer or reimbursement thereof of expenses, in connection with the
         Project to the completion of construction of the Project.

         "Counsel" shall mean an attorney or firm of attorneys acceptable to the
Trustee, and may, but need not, be counsel to the Issuer or the Company.

         "County" shall mean Fort Bend County, Texas.

         "Credit Facility" shall mean the Letter of Credit or any Alternate
Credit Facility delivered to the Trustee pursuant to Section 503 of the
Indenture.

         "Credit Facility Issuer" shall mean the Bank with respect to the Letter
of Credit and the institution issuing any Alternate Credit Facility.

         "Department" shall mean the Texas Department of Economic Development.

         "Determination of Taxability" shall be defined as and shall be deemed
to have occurred on the first to occur of the following:

                  (1)      on the date when the Company files any statement,
         supplemental statement or other tax schedule, return or document which
         discloses that an Event of Taxability shall have in fact occurred;

                  (2)      on the date when any Bondholder or former Bondholder
         notifies the Company or the Trustee that it has received a written
         opinion of Bond Counsel to the effect that an Event of Taxability shall
         have occurred unless, within one (1) year after receipt by the Company
         of such notification from the Trustee, any Bondholder or any former
         Bondholder, the Company shall obtain and deliver to the Trustee a
         favorable ruling or determination letter issued to or on behalf of the
         Company by the Commissioner or any District Director of Internal
         Revenue (or any other government official exercising the same or a
         substantially similar function from time to time) to the effect that,
         after taking into consideration such facts as form the basis for the
         opinion that an Event of Taxability has occurred, an Event of
         Taxability shall not have occurred;

                                       3
<PAGE>   9

                  (3)      on the date when the Company shall be advised in
         writing by the Commissioner or any District Director of Internal
         Revenue (or any other government official or agent exercising the same
         or a substantially similar function from time to time) that, based upon
         filings of the Company, or upon any review or audit of the Company, or
         upon any other ground whatsoever, an Event of Taxability shall have
         occurred;

                  (4)      on the date when the Company shall receive notice in
         writing from any Bondholder or former Bondholder, or from the Trustee,
         that the Internal Revenue Service (or any other government agency
         exercising the same or a substantially similar function from time to
         time) has assessed as includable in the gross income of any Bondholder
         or former Bondholder the interest on such Bondholder's or former
         Bondholder's Bonds due to the occurrence of an Event of Taxability;

provided, however, no Determination of Taxability shall be deemed to have
occurred under subparagraph (3) or (4) hereof unless the Company has been
afforded the opportunity, at its expense, to contest any such assessment or
unfavorable ruling and, further, no Determination of Taxability shall be deemed
to have occurred until such contest, if made, has been finally determined.

         "Eminent Domain" shall mean the taking of title to, or the temporary
use of, the Project or any part thereof pursuant to eminent domain or
condemnation proceedings, or any voluntary conveyance of any part of the Project
during the pendency of, or as a result of a threat of, such proceedings.

         "Event of Default" or "Default" shall have the meaning set forth in
Section 9.1 hereof.

         "Event of Taxability" shall mean a change in law or fact or the
interpretation thereof, or the occurrence or existence of any fact, event or
circumstance (including, without limitation, the issuance of obligations or the
incurring of capital expenditures in excess of those permitted by Section
144(a)(4) of the Code, or the taking of any action by the Company, or the
failure to take any action by the Company, or the making by the Company of a
misrepresentation herein or in any certificate required to be given in
connection with the issuance, sale or delivery of the Bonds) which has the
effect of causing the interest paid or payable on any Bond to become includable
in the gross income of any Bondholder or former Bondholder of any Bond other
than a Bondholder or former Bondholder who is or was a Substantial User or
Related Person.

         "Fair Market Value" means the price at which a willing buyer would
purchase an investment from a willing seller in a bona-fide, arm's length
transaction, as more specifically set forth in Section 1.148-5(d)(6) of the
Regulations.

         "Final Computation Date" shall mean the final maturity of the Bonds.

                                       4
<PAGE>   10

         "Financing Statements" means any and all financing statements
(including continuation statements) filed for record from time to time to
perfect the security interests created or assigned pursuant to the Bond
Documents.

         "Generally Accepted Accounting Principles" shall mean those principles
of accounting set forth in pronouncements of the Financial Accounting Standards
Board and its predecessors or pronouncements of the American Institute of
Certified Public Accountants or those principles of accounting which have other
substantial authoritative support and are applicable in the circumstances as of
the date of application, as such principles are from time to time supplemented
and amended.

         "Indenture" shall mean the Trust Indenture of even date herewith
between the Issuer and the Trustee, together with any amendments or supplements
thereof permitted thereby.

         "Installment Computation Date" shall mean the last day of the fifth and
each succeeding fifth Bond Year.

         "Issuer" shall mean the Fort Bend County Industrial Development
Corporation and its successors and assigns.

         "Issuer Documents" shall mean collectively the Indenture, the Placement
Agent Agreement and this Loan Agreement.

         "Issuer Representative" shall mean any one of the persons at the time
designated to act on behalf of the Issuer by written certificate furnished to
the Company and the Trustee containing the specimen signatures of such persons
and signed on behalf of the Issuer by the Chairman.

         "Letter of Credit" shall mean the irrevocable direct pay letter of
credit dated October 26, 2000 in the amount of $4,287,500 issued by the Bank,
with an initial term of three (3) years, subject to any extensions thereof.

         "Letter of Credit Documents" shall mean the Letter of Credit, the
Reimbursement Agreement and the Pledge Agreement.

         "Loan Agreement" shall mean this Loan Agreement and any amendments and
supplements thereto permitted by the Indenture.

         "Local Facilities" means "facilities" (as that term is used in Section
144(a)(4) of the Code) of which the Company, any other Principal User of the
Project, or a Related Person of any of the foregoing, is or will be a Principal
User and which are located within the unincorporated areas of the County.

For the purposes of this definition, a "contiguous or integrated facility" (as
that term is used in Section 1.103-10(d)(2)(i) of the Regulations) located
partly within and partly without the

                                       5
<PAGE>   11

unincorporated areas of the County, shall be considered as being located
entirely within the unincorporated areas of the County.

         "Net Proceeds," when used with respect to (i) any insurance proceeds or
(ii) any award resulting from, or other amount received in connection with,
Eminent Domain, means the gross proceeds from such proceeds, award or other
amount, less all expenses (including reasonable and actual attorneys' fees)
incurred in the realization thereof.

         "Non-Purpose Investment" means any investment property (other than a
tax-exempt obligation under Section 103(a) of the Code) that is not acquired to
carry out the governmental purpose of the Bonds.

         "Overdue Rate" shall mean the Prime Rate plus two percent per annum, or
the maximum contract rate permitted by law, whichever is lower.

         "Payment of the Bonds" shall mean payment of (i) the principal of and
interest on the Bonds in accordance with their terms whether through payment at
maturity, upon acceleration or prepayment, (ii) all amounts due as
Administrative Expenses or otherwise, and (iii) any and all other liabilities
and obligations arising under the Indenture and this Loan Agreement; in any
case, payment in such a manner that all such amounts due and owing with respect
to the Bonds shall have been paid.

         "Permitted Encumbrances" shall mean, as of any particular time, (i)
liens for ad valorem taxes and special assessments, if any, which are not then
delinquent or which are being contested in good faith, (ii) the liens created
pursuant to the Indenture, any mortgage or deed to secure debt from the Company
to the Bank, (iii) judgment liens which remain undischarged and unstayed for not
more than thirty (30) days and (iv) mechanic's, materialmen's, warehousemen's,
carrier's and other similar liens incurred in the ordinary course of business
remaining undischarged or unstayed for not longer than sixty (60) days from the
date of attachment thereof.

         "Person" shall mean an individual, partnership, corporation, trust,
unincorporated organization, association, joint venture, joint-stock company, or
a government or agency or political subdivision thereof.

         "Placement Agent" shall mean the securities dealer, bank or trust
company which is designated by the Company with the consent of the Credit
Facility Issuer, which will use its best efforts to arrange for the initial
placement of the Bonds and which will agree to establish the Preliminary Fixed
Rate and to use its best efforts to arrange for the sale of Tendered Bonds on
the Conversion Date, all as more particularly described in Section 2.2(e) of the
Indenture.

         "Placement Agent Agreement" shall mean that certain letter agreement
dated the date of issuance of the Bonds among the Issuer, the Company and
Placement Agent for the initial placement of the Bonds.

                                       6
<PAGE>   12

         "Pledge Agreement" shall mean the Pledge Agreement of even date
herewith by the Company to the Bank, and any amendments or supplements thereof.

         "Prime Rate," prior to the Conversion Date, shall mean that rate of
interest per annum announced by First Union National Bank at its principal
office in Charlotte, North Carolina, from time to time to be its "prime rate,"
and after the Conversion Date shall mean the interest rate published in the
"Money Rate" table of The Wall Street Journal as such rate (or if a range of
rates is published, then the highest rate in such range). In the event that The
Wall Street Journal shall abolish or abandon the practice of publishing a "prime
rate," or should the same become unascertainable, the Trustee shall designate a
comparable reference rate which shall be deemed to be the Prime Rate for
purposes hereof.

         "Principal User" shall have the meaning as specified in Section 2.2(v)
hereof.

         "Project" shall mean the financing, in whole or in part, of the
acquisition, construction, installation and equipping of a manufacturing
facility located in the County, to be used to manufacture upholstered furniture
and wood office furniture.

         "Project Fund" shall mean the trust fund so designated which is
established pursuant to Section 4.1 of the Indenture.

         "Qualified Costs" means those Costs of the Project paid and incurred
subsequent to June 4, 2000 for the acquisition and renovation of land or
property of a character subject to the allowance for depreciation under Section
167 of the Code and shall include all amounts which are chargeable to the
capital account of the Project or would be so chargeable either with a proper
election by the Company or but for a proper election by the Company to deduct
such amounts and shall exclude all costs paid to a Related Person to the
Company.

         "Rebate Amount" has the meaning ascribed in Section 1.148-3 of the
Regulations and generally means the excess as of any date of the future value of
all receipts on Nonpurpose Investments over the future value of all payments on
Nonpurpose Investments, all as determined in accordance with Section 1.148-3 of
the Regulations.

         "Rebate Fund" means the fund of that name created pursuant to Section
405 of the Indenture and described in Section 11.1 hereof.

         "Regulations" shall mean the applicable Treasury Regulations under
Sections 103 and 141 through 150 of the Code whether at the time proposed,
temporary, final or otherwise, including, where applicable, Treasury Regulations
under Section 103 of the Internal Revenue Code of 1954, as amended and in effect
prior to adoption of the Code.

         "Reimbursement Agreement" shall mean the Letter of Credit and
Reimbursement Agreement, of even date herewith, by and between the Company and
the Bank, and any supplements or amendments thereto.

                                       7
<PAGE>   13

         "Related Person" means "related person" within the meaning of Section
144(a)(3) of the Code.

         "Remarketing Agent" shall mean First Union National Bank, Charlotte,
North Carolina and its successors as provided in Section 1101 of the Indenture.

         "Remarketing Agreement" shall mean the Remarketing Agreement of even
date herewith between the Company and the Remarketing Agent.

         "Security Interest" or "security interests" shall refer to the security
interests created in the Indenture.

         "State" shall mean the State of Texas.

         "Substantial User" shall have the meaning as specified in Section 2.2
hereof.

         "Trustee" shall mean the banking institution at the time serving as
Trustee under the Indenture.

         "Yield" means, (1) on a fixed yield issue, the discount rate that, when
used in computing the present value as of the issue date of all unconditionally
payable payments of principal, interest, and fees for qualified guarantees on
such issue and amounts reasonably expected to be paid as fees for qualified
guarantees on such issue, produces an amount equal to the present value, using
the same discount rate, of the same aggregate issue price of the issue as of the
issue date thereof. The "yield "on an investment allocated to an issue of bonds
is the discount rate that, when used in computing the present value as of the
date the investment is first allocated to such issue of all unconditionally
payable receipts from the investment, produces an amount equal to the present
value of all unconditionally payable payments for the investment. The yield on
an investment allocated to an issue is computed under the economic accrual
method, using the same compounding interval and financial conventions to compute
the yield on the issue. Thus, for example, if the yield on an investment
allocated to an issue is determined on the basis of semiannual interest
compounding, then the yield on the issue shall also be expressed in terms of
semiannual interest compounding. (2) The yield on a variable yield issue is
computed separately for each computation period. The yield for each computation
period is the discount rate that, when used in computing the present value as of
the first day of the computation period of all the payments of principal and
interest and fees for qualified guarantees that are attributable to the
computation period, produces an amount equal to the present value, using the
same discount rate, of the aggregate issue price (or deemed issued price, as
determined in Regulation Section 1.148-4(c)(2)(iv)) of the Bonds as of the first
day of the computation period.

         SECTION 1.2       RULES OF CONSTRUCTION.

                  (1)      Words of masculine gender shall be deemed and
         construed to include correlative words of the feminine and neuter
         genders, and words of the neuter gender

                                       8
<PAGE>   14

         shall be deemed and construed to include correlative words of the
         masculine and feminine genders.

                  (2)      The table of contents, captions and headings in this
         Loan Agreement are for convenience only and in no way define, limit or
         describe the scope or intent of any provisions or Sections of this Loan
         Agreement.

                  (3)      All references herein to particular Articles or
         Sections are references to Articles or Sections of this Loan Agreement
         unless some other reference is established.

                  (4)      All accounting terms not specifically defined herein
         shall be construed in accordance with Generally Accepted Accounting
         Principles applied on a Consistent Basis.

                  (5)      All references herein to the Company shall be deemed
         to refer to each of the Persons if more than one are described by such
         term. Obligation, duty or liability of the Company shall be a joint and
         several agreement, obligation, duty or liability of each of the Persons
         so described by such term.

                  (6)      Any terms not defined herein but defined in any of
         the other Bond Documents shall have the same meaning herein.

                                       9
<PAGE>   15

                                   ARTICLE II
                                 REPRESENTATIONS

         SECTION 2.1       REPRESENTATIONS BY THE ISSUER. The Issuer represents,
warrants and agrees as follows:

         (a)      The Issuer is a nonprofit industrial development corporation
duly organized under the Constitution and laws of the State.

         (b)      Under the provisions of the Act, the Issuer is duly authorized
to enter into, execute and deliver or, if appropriate, accept the Issuer
Documents, to issue and deliver the Bonds, to undertake the transactions
contemplated by the Issuer Documents and the Bonds and to carry out its
obligations hereunder and thereunder.

         (c)      The Issuer proposes to issue the Bonds in the aggregate
principal amount of $4,200,000 to finance, in whole or in part, the acquisition,
construction, installation and equipping of the Project.

         (d)      By the Bond Resolution, the Issuer has duly authorized the
execution, delivery and performance or, if appropriate, acceptance of the Issuer
Documents, including the borrowing under and the issuance and performance of the
Bonds.

         (e)      The Bonds will be issued under and pursuant to the Indenture
and will mature, bear interest, and have the other terms and provisions set
forth or provided for in the Indenture.

         (f)      To the best of its knowledge, no event has occurred and no
condition exists with respect to the Issuer which would constitute an "event of
default" as defined in this Loan Agreement or the Indenture or which, with the
lapse of time or with the giving of notice or both, would become an "event of
default" under this Loan Agreement or the Indenture.

         (g)      Neither this Loan Agreement nor any portion of the Trust
Estate have been pledged or hypothecated in any manner or for any purpose other
than as provided in the Indenture as security for the payment of the Bonds. The
Bonds constitute the only bonds or other obligations of the Issuer in any manner
payable from the revenues to be derived from this Loan Agreement, and except for
the Bonds, no bonds or other obligations have been or will be issued on the
basis of this Loan Agreement.

         (h)      With respect to the Bonds, there are no other obligations of
the Issuer that have been, are being or will be sold (1) at substantially the
same time, (2) under the same plan of financing, and (3) payable from the same
source of funds.

         (i)      On August 2, 2000, the Issuer adopted an initial resolution
approving the issuance of the Bonds.

                                       10
<PAGE>   16

         (j)      No member of the Issuer voting on this financing has any
interest whatsoever in the Company or in the transactions contemplated by this
Loan Agreement.

         (k)      The Issuer will not enter into any agreement or instrument
which might in any way prevent or materially impair its ability to perform its
obligations under the Bond Documents.

         (l)      So long as any Bonds shall remain unpaid, the Issuer will,
upon request of the Trustee and provided it shall be furnished with sufficient
funds to pay all costs and expenses (including reasonable and actual attorney's
fees) reasonably incurred by it as such costs and expenses accrue:

                  (1)      take all action and do all things which it is
         authorized by law to take and do in order to perform and observe all
         covenants and agreements on its part to be performed and observed under
         the Bond Documents; and

                  (2)      execute, acknowledge, where appropriate, and deliver
         from time to time promptly at the request of the Trustee all such
         instruments and documents as in the opinion of the Trustee are
         necessary or desirable to carry out the intent and purpose of the Bonds
         Documents or any of them.

         (m)      So long as any Bonds shall remain unpaid, the Issuer will not,
without the written consent of the Trustee:

                  (1)      take any action which, directly or indirectly,
         adversely affects its existence or status as a political subdivision
         organized and existing under the laws of the State;

                  (2)      take any action which would adversely affect the
         exclusion from gross income for federal income tax purposes of interest
         on the Bonds; or

                  (3)      pledge any interest in this Loan Agreement, or the
         amounts to be derived herefrom, other than as contemplated by the
         Indenture.

         SECTION 2.2       REPRESENTATIONS, WARRANTIES AND COVENANTS BY THE
COMPANY. The Company represents, warrants and covenants and agrees as follows:

         (a)      The Company is a corporation duly organized and validly
existing under the laws of the State of Georgia. The Company is not in violation
of any provision of its Articles of Incorporation, as amended, has the corporate
power to enter into and perform this Agreement, and has duly authorized by
proper corporate action the execution and delivery of this Agreement, and is
qualified to do business and is in good standing under the laws of the State.

         (b)      Neither the execution and delivery of this Loan Agreement, the
Remarketing Agreement, the Reimbursement Agreement or the Pledge Agreement, nor
the consummation of

                                       11
<PAGE>   17

the transactions contemplated hereby and thereby, nor the fulfillment of or
compliance with the terms and conditions hereof or thereof (i) conflicts with or
results in a breach of the articles of incorporation or the bylaws of the
Company or constitutes a default under the articles or bylaws of the Company,
(ii) materially conflicts with or results in a material breach of the terms,
conditions, or provisions of any agreement or instrument to which the Company is
now a party or by which the Company is bound, or constitutes a material default
under any of the foregoing, or (iii) results in the creation or imposition of
any lien, charge or encumbrance whatsoever upon any of the property or assets of
the Company other than as expressly contemplated by the terms of any such
instrument or agreement.

         (c)      There is no action, suit, proceeding, inquiry or
investigation, at law or in equity, before or by any court, public board or
body, known to be pending or threatened against or affecting the Company or any
of its officers, nor to the best knowledge of the Company is there any basis
therefor, wherein an unfavorable decision, ruling, or finding would materially
adversely affect the transactions contemplated by this Loan Agreement or which
would adversely affect, in any way, the validity or enforceability of the Bonds,
this Loan Agreement, the Pledge Agreement, the Reimbursement Agreement, the
Remarketing Agreement, or any agreement or instrument to which the Company is a
party, used or contemplated for use in the consummation of the transactions
contemplated hereby.

         (d)      The Project is of the type authorized and permitted by the
Act, and its estimated cost is not less than $4,200,000.

         (e)      The sales and investment proceeds of the Bonds deposited under
the Indenture will be used only for payment of Costs of the Project and costs of
issuing the Bonds (not exceeding 2% of the principal amount of the Bonds). None
of the proceeds of the Bonds will be used as working capital or to finance
inventory. The Company will pay all Project costs not paid with Bond proceeds.

         (f)      The Company will use due diligence to cause the Project to be
constructed and operated in accordance with the laws, rulings, regulations and
ordinances of the State and the departments, agencies and political subdivisions
thereof. The Company has obtained or will cause to be obtained all requisite
approvals of the State and of other federal, state, regional and local
governmental bodies for the construction and equipping of the Project.

         (g)      The Company will not claim an exemption arising from the
issuance of the Bonds from State sales, use or excise taxes on personal property
or property taxes on real property with respect to property acquired in
connection with the Project.

         (h)      The Company will keep all taxes and assessments against the
Project fully paid before the same become delinquent.

         (i)      The Company will fully and faithfully perform all the duties
and obligations which the Issuer has covenanted and agreed in the Indenture to
cause the Company to perform, any duties and obligations which the Company is
required in the Indenture to perform and any delegable or assignable duties and
obligations which the Issuer is required in the Indenture to

                                       12
<PAGE>   18

perform. The foregoing shall not apply to any duty or undertaking of the Issuer
which by its nature cannot be delegated or assigned.

         (j)      Except for any architectural, engineering, surveying, soil
testing, or similar preliminary activities occurring earlier, the commencement
of the construction of the Project, and each of the several components thereof,
occurred subsequent to June 4, 2000, which is sixty days prior to the date of
adoption by the Issuer of its initial inducement resolution. No sales and
investment proceeds of the Bonds will be used to reimburse the Company for
amounts paid prior to June 4, 2000 other than for "preliminary expenditures" as
defined in Section 1.150-2(f) of the Income Tax Regulations.

         (k)      The Company has entered into various contracts providing for
the construction and improving of the Project that collectively create a
substantial binding commitment on the Company's part to expend at least five
percent (5%) of the net sale proceeds of the Bonds on the Project. For purposes
of the preceding sentence and subsection (m) below, the term "net sale proceeds"
means the proceeds actually or constructively received by the Issuer from the
sale of the Bonds (including amounts used to pay any placement agent's or
underwriters' discount).

         (l)      The Project consists of land and/or property subject to the
allowance for depreciation under the Code, and substantially all of the net
proceeds of the Bonds, including earnings from the investment thereof, will be
used to pay Qualified Costs.

         (m)      No changes shall be made in the Project and no actions will be
taken by the Company that shall in any way cause interest on the Bonds to be
included in gross income for federal income tax purposes.

         (n)      Based on current facts, estimates and circumstances, the
Company currently expects:

                  (1)      that the acquisition, construction, installation and
         equipping of the Project and the expenditure of all of the net sale
         proceeds of the Bonds will be completed by October 1, 2003;

                  (2)      to proceed with due diligence toward completion of
         the Project (the work on which has already commenced) and the
         expenditure of the net sale proceeds of the Bonds in connection with
         the Project; and

                  (3)      the proceeds of the Bonds deposited under the
         Indenture are needed for the purpose of paying all or a part of the
         Cost of the Project.

         (o)      As of the date of execution and delivery of this Loan
Agreement, there exists no Event of Default or any condition or event which
would constitute, or with the passage of time or the giving of notice, or both,
would constitute an Event of Default hereunder.

                                       13
<PAGE>   19

         (p)      The average maturity of the Bonds does not exceed one hundred
twenty percent (120%) of the average reasonably expected economic life of the
assets being financed with the proceeds of the Bonds, with the average
reasonably expected economic life of each asset being measured from the later of
the date of issuance of the Bonds or the date such asset is reasonably expected
to be placed in service and by taking into account the respective cost of each
asset being financed. The information furnished by the Company and used by the
Issuer to verify the average reasonably expected economic life of each asset of
the Project to be financed with the proceeds of the Bonds is true, accurate and
complete.

         (q)      (i) The payment of principal or interest with respect to the
Bonds is not guaranteed (in whole or in part) by the United States (or any
agency or instrumentality thereof); (ii) five percent (5%) or more of the
proceeds of the Bonds will not be (A) used in making loans the payment of
principal and interest with respect to which are to be guaranteed (in whole or
in part) by the United States (or any agency or instrumentality thereof), or (B)
invested (directly or indirectly) in federally insured deposits or accounts as
defined in Section 149(B) of the Code; and (iii) the payment of principal or
interest on the Bonds is not otherwise indirectly guaranteed (in whole or in
part) by the United States (or any agency or instrumentality thereof).

         The foregoing provisions of this subsection shall not apply to proceeds
of the Bonds being (i) invested for an initial temporary period until such
proceeds are needed for the purpose for which such issue was issued; (ii) held
in a bona fide debt service fund; (iii) held in a reserve that meets the
requirements of Section 148(d) of the Code with respect to reasonably required
reserve or replacement funds; (iv) invested in obligations issued by the United
States Treasury; or (v) held in a refunding escrow (i.e., a fund containing
proceeds of a refunding bond issue established to provide for the payment of
principal or interest on one or more prior bond issues); or (vi) invested in
other investments permitted under regulations promulgated pursuant to Section
149(b)(3)(B) of the Code.

         (r)      Any information supplied by the Company that has been relied
upon by the Issuer and by Bond Counsel with respect to the eligibility of the
Project and the exclusion from gross income for federal income tax purposes of
interest on the Bonds is true and correct.

         (s)      The Company shall promptly provide written notice to the
Issuer and the Trustee if the Company becomes aware of an Event of Default as
such term is used in Section 9.1 hereof.

         (t)      All components of the Project are or will be located wholly
within the unincorporated boundaries of the County.

         (u)      This Loan Agreement constitutes a valid and binding obligation
of the Company enforceable against the Company in accordance with its terms.

         (v)      There is no other bond or issue of bonds, the interest on
which is tax exempt pursuant to Section 144(a) of the Code or Section 103(b)(6)
of the Internal Revenue Code of

                                       14
<PAGE>   20

1954, as amended, part or all of the net proceeds of which are to be used with
part or all of the net proceeds of the Bonds with respect to a single building,
an enclosed shopping mall, or a strip of offices, stores or warehouses using
substantial common facilities, as contemplated by Section 144(a)(9) of the Code.
There are no heating, cooling or other facilities shared by the Project and by
any other facility financed with tax-exempt bonds. There are no common
entrances, to plazas, malls, lobbies, parking, elevators or stairways shared by
the Project and any other facility financed with tax-exempt use by employees or
patrons of the Project and such facility.

         (w)      Neither the Company nor any Related Persons (as such term is
used in the Code) to the Company are owners or principal users (as such term is
used in the Code) of any facility (other than the Project) in the unincorporated
area of the County, or outside of, but contiguous with, the unincorporated area
of the County.

         (x)      The Project is not integrated with any facility located
outside of the unincorporated area of the County.

         (y)      (i) The aggregate authorized face amount of the Bonds
allocated to any test-period beneficiary (as such term is used in the Code),
when increased by the outstanding tax-exempt facility-related bonds (within the
meaning of Section 144(a)(10) of the Code) of such beneficiary, does not exceed
$40,000,000. (ii) For purposes of applying subparagraph (i) above, with respect
to any issue, the outstanding tax-exempt facility-related bonds of any person
who is a test-period beneficiary, as such term is used in the Code, with respect
to such issue is the aggregate face amount of all tax-exempt bonds which, within
the meaning of Section 144(a)(10)(B)(ii) of the Code, are exempt facility bonds,
qualified small issue bonds and qualified redevelopment bonds or industrial
development bonds (as defined in Section 103(b)(2) of the Internal Revenue Code
of 1954, as in effect on the date before the date of enactment of the Tax Reform
Act of 1986) to which Section 141(a) of the Code does not apply: (A) which are
allocated to such beneficiary, and (B) which are outstanding on the date of
issuance of the Bonds (not including as outstanding any obligation which is to
be redeemed from the proceeds of the Bonds). (iii) The amount of any issue shall
be allocated so that: (y) except as may otherwise be provided in regulations
promulgated under Section 144(a)(10)(C) of the Code, the portion of the face
amount of any issue allocated to any test-period beneficiary of the facility
financed by the proceeds of such issue (other than an owner of such facility) is
an amount which bears the same relationship to the entire face amount of such
issue as the portion of such facility used by such beneficiary bears to the
entire facility; and (z) except as otherwise provided in regulations promulgated
under Section 144(a)(10)(C) of the Code, the portion of the face amount of an
issue allocated to any test period beneficiary who is an owner of a facility
financed by the proceeds of such issue is an amount which bears the same
relationship to the entire face amount of such issue as the portion of such
facility owned by such beneficiary bears to the entire facility.

         (z)      The information furnished by the Company and used by the
Issuer in making its election to issue the Bonds pursuant to Section 144(a)(4)
of the Code was true and complete as of the date hereof. The aggregate principal
amount of all obligations assumed, expenditures

                                       15
<PAGE>   21

made and obligations incurred during the six year period beginning on the date
three years prior to the issuance of the Bonds and ending on the date three
years after the issuance of the Bonds with respect to Local Facilities
(including, without limitation, the leasing of equipment) which constitute
"capital expenditures", as that term is used in Section 144(a)(4) of the Code
("Capital Expenditures") (other than those mentioned in Section 144(a)(4)(C) of
the Code), by the Company, any other Principal User of the Project, any Related
Person of either, or otherwise with respect to Local Facilities, but excluding
such Capital Expenditures paid out of the proceeds of the Bonds, did not at any
time during the period referenced above exceed $10,000,000.

         (aa)     No customer of the Company is expected to purchase ten percent
(10%) or more of the Company's annual output from the Project during the first
three years of the term of the Loan Agreement on a basis different than any
other customer of the Company.

         (bb)     The Project constitutes a "manufacturing facility" within the
meaning and contemplation of Section 144(a)(12) of the Code, and any office
space included as part of the Project will be (i) located at or within the
Project, (ii) directly related to the day-to-day manufacturing operations at the
Project, and (iii) de minimis in size and cost in relation to the size and cost
of the Project.

         (cc)     The Company shall use at least 95% of the sale and investment
proceeds of the Bonds that are disbursed to finance Qualified Costs.

         (dd)     The Company shall timely provide the written direction
required under Section 401(g) of the Indenture in order to comply with the
requirements of Section 1.144-2 of the Regulations.

         (ee)     The Project will not include at any time any airplane, skybox
or other private luxury box, health club facility, facility primarily used for
gambling, store the principal business of which is the sale of alcoholic
beverages for consumption off premises, any private or commercial golf course,
country club, massage parlor, tennis club, skating facility (including roller
skating, skateboard, and ice skating), racquet sports facility (including any
handball or racquetball court), hot tub facility, suntan facility, or racetrack.

         (ff)     Less than 25 percent of the Net Proceeds of the Bonds actually
expended will be used, directly or indirectly, for the acquisition of land or an
interest therein. Notwithstanding the immediately preceding sentence no portion
of the Net Proceeds of the Bonds will be used, directly or indirectly, for the
acquisition of land or an interest therein to be used for farming purposes.

         (gg)     No portion of the Net Proceeds of the Bonds will be used for
the acquisition of any existing property or an interest therein unless (i) the
first use of such property is pursuant to such acquisition or (ii) the
rehabilitation expenditures with respect to any building and the equipment
therefore equal or exceed 15 percent of the cost of acquiring such building
financed with the proceeds of the Bonds (with respect to structures other than
buildings, this clause shall be applied by substituting 100 percent for 15
percent). For purposes of the preceding

                                       16
<PAGE>   22

sentence, the term "rehabilitation expenditures" shall have the meaning set
forth in section 147(d)(3) of the Code.

         (hh)     The costs of issuance (within the meaning of section 147(g) of
the Code and applicable regulations thereunder) financed with the proceeds of
the Bonds shall not exceed 2 percent of the proceeds from the sale of the Bonds.

         When used in this Section 2.2, the term Net Proceeds of the Bond shall
mean the proceeds from the sale of the Bonds, including investment earnings on
such proceeds, less accrued interest.

         All of the above representations, warranties, covenants and agreements
shall survive the execution of this Loan Agreement.

                                       17
<PAGE>   23

                                  ARTICLE III
              PERMITS AND APPROVALS; COMPANY CONSENT TO ASSIGNMENT

         SECTION 3.1       APPROVALS REQUIRED FOR THE PROJECT. The Company has
obtained or caused to be obtained all necessary material permits and approvals
for the operation and maintenance of the Project and has complied and will
continue to comply in all material respects with all lawful requirements of any
governmental body regarding the use or condition of the Project. The Company
may, however, contest any such requirement by an appropriate proceeding
diligently prosecuted.

         SECTION 3.2       COMPANY CONSENT TO ASSIGNMENT OF AGREEMENT AND
EXECUTION OF INDENTURE. The Company understands that the Issuer, as security for
the payment of the principal of, and the interest on, the Bonds, will assign and
pledge to, and create a security interest in favor of, the Trustee pursuant to
the Indenture certain of its rights, title and interest in and to this Loan
Agreement including all Revenues, reserving, however, its rights (a) pursuant to
this Loan Agreement providing that notices, approvals, consents, requests and
other communications be given to the Issuer, (b) to reimbursement and payment of
costs and expenses under this Loan Agreement, and (c) to indemnification and to
exemption from liability, both individual and corporate, under this Loan
Agreement, and the Company hereby agrees and consents to such assignment and
pledge. The Company acknowledges that it has received a copy of the Indenture
and consents to the execution of the same by the Issuer.

                                       18
<PAGE>   24

                                   ARTICLE IV
                              ISSUANCE OF THE BONDS

         SECTION 4.1       AGREEMENT TO ISSUE THE BONDS. To provide funds to
finance the acquisition, construction and improving of the Project, the Issuer
agrees that it will authorize, sell, issue and deliver the Bonds in the
aggregate principal amount of $4,200,000 in the manner set forth in the
Indenture and cause the proceeds of the Bonds to be applied as provided in the
Indenture.

         SECTION 4.2       DISBURSEMENTS FROM THE PROJECT FUND. The Issuer has,
in the Indenture, authorized and directed the Trustee to make disbursements from
the Project Fund in accordance with the terms of this Loan Agreement including
refinancing the loan as more fully set forth in the Indenture.

         SECTION 4.3 CLOSEOUT OF THE PROJECT FUND. The Completion Date for the
Project shall be promptly established and evidenced to the Trustee and shall be
the date on which the Company Representative delivers to the Trustee a
certificate stating that, except for amounts retained by the Trustee at the
Company's direction for any Cost of the Project not then due and payable, the
Construction of the Project has been completed substantially in accordance with
the plans and specifications, if any, and all costs and expenses incurred in
connection therewith have been paid. Notwithstanding the foregoing, such
certificate may state that it is given without prejudice to any rights against
third parties that exist at the date of such certificate or that may
subsequently come into being.

         SECTION 4.4       DISPOSITION OF THE BALANCE IN THE PROJECT FUND.
Pursuant to Section 401(g) of the Indenture, as soon as practicable after, and
in any event within sixty (60) days from, the Trustee's receipt of the
certificate mentioned in Section 4.3 hereof, all amounts remaining in the
Project Fund, including any unliquidated investments made with money theretofore
deposited in the Project Fund, except for amounts to be retained in the Project
Fund for any Cost of the Project not then due and payable as provided in Section
4.3 hereof, shall be transferred by the Trustee to the Bond Fund and shall be
applied immediately as set forth in the written direction of the Company as
described in subsections (i) through (iii) of Section 401(g) of the Indenture.

         SECTION 4.5       COMPANY REQUIRED TO PAY IN EVENT PROJECT FUND
INSUFFICIENT. In the event the moneys in the Project Fund available for the
Project are not sufficient for the Project, the Company agrees to provide such
funds and to pay the amount in excess of the moneys available therefor in the
Project Fund. The Issuer does not make any warranty, either express or implied,
that the moneys paid into the Project Fund will be sufficient for such purpose.
The Company agrees that if after exhaustion of the moneys in the Project Fund,
the Company should pay any amount to finance the construction and equipping of
the Project pursuant to the provisions of this Section, the Company shall not be
entitled to any reimbursement therefor from the Issuer, the Trustee or the
Bondholders, nor shall the Company be entitled to any diminution of the amounts
payable under Section 5.2 hereof.

                                       19
<PAGE>   25

         SECTION 4.6       NO THIRD PARTY BENEFICIARY. It is specifically agreed
between the parties executing this Loan Agreement that it is not intended by any
of the provisions of any part of this Loan Agreement to create in the public or
any member thereof, other than as may be expressly provided herein or as
contemplated in the Indenture, a third party beneficiary hereunder, except for
the Department, or to authorize anyone not a party to this Loan Agreement to
maintain a suit for personal injuries or property damage pursuant to the terms
or provisions of this Loan Agreement. The duties, obligations, and
responsibilities of the parties to this Loan Agreement with respect to third
parties shall remain as imposed by law.

                                       20
<PAGE>   26

                                   ARTICLE V
                            LOAN BY THE ISSUER TO THE
                               COMPANY; REPAYMENT

         SECTION 5.1       LOAN BY THE ISSUER; REPAYMENT.

         (a)      Upon the terms and conditions of this Loan Agreement, the
Issuer shall lend to the Company the proceeds from the sale of the Bonds. The
loan shall be evidenced by and repayable as set forth in this Loan Agreement.
The loan shall be made by depositing said proceeds in the Project Fund in
accordance with the terms of the Indenture.

         (b)      As consideration for the issuance of the Bonds and the making
of the loan to the Company by the Issuer, the Company will execute and deliver
this Loan Agreement, and the Issuer will assign this Loan Agreement to the
Trustee, as the assignee of the Issuer under the Indenture, contemporaneously
with the issuance of the Bonds. The Company shall repay the loan in accordance
with the provisions of this Loan Agreement.

         SECTION 5.2       PAYMENT OBLIGATIONS OF THE COMPANY.

         (a)      One day prior to the first Business Day of each month
beginning on the first Business Day of November 2000, and in each year
thereafter until payment in full of the Bonds, the Company shall pay or cause to
be paid to the Trustee for the account of the Issuer as loan payments a sum
equal to the amount payable on each such date as principal of (whether at
maturity or upon redemption prior to maturity) and interest on the Bonds, as
provided in the Indenture. Each loan payment under this Section shall be
sufficient to pay the total amount of principal (whether at maturity or upon
redemption prior to maturity) and interest payable on such payment date, and if
at any payment date the balance in the Bond Fund is insufficient to make
required payments of principal and interest on such date, the Company shall
forthwith pay any such deficiency. Such payments may be applied by the Trustee
to reimburse the Credit Facility Issuer if funds for such payment or redemption
are obtained or are to be obtained pursuant to a draw under the Credit Facility.
On or by the third Business Day before the first Business Day of each month that
the Company's payment has not been received, the Issuer hereby directs the
Trustee, in accordance with the Indenture, to give telephonic and written notice
to the Company of the upcoming loan payment date.

         Anything herein to the contrary notwithstanding, any amount at any time
held by the Trustee in the Bond Fund shall be credited against the next
succeeding loan payment and such credit shall reduce the payment to be then made
by the Company; and further, if the amount held by the Trustee in the Bond Fund
should be sufficient to pay at the times required the principal of and interest
on all Bonds then remaining unpaid, the Company shall not be obligated to make
any further loan payments under the provisions of this Section.

         (b)      The Company agrees to pay to the Trustee until the Bonds are
paid in full, (i) an amount equal to the aggregate annual fee of the Trustee
which is $2,750.00 for the ordinary services of the Trustee rendered and its
ordinary expenses incurred under the Indenture, (ii) the

                                       21
<PAGE>   27

reasonable fees and charges of the Trustee and any other paying agent for acting
as paying agent and as Bond Registrar as and when the same become due, and (iii)
the reasonable fees and charges of the Trustee for extraordinary services
rendered by it and extraordinary expenses incurred by it under the Indenture, as
and when the same become due.

         If the Company should fail to make any of the payments required in this
paragraph, the item or installment so in default shall continue as an obligation
of the Company until the same shall have been fully paid, and the Company agrees
to pay the same with interest thereon, to the extent legally enforceable, at the
Overdue Rate until paid.

         SECTION 5.3       SECURITY FOR PAYMENTS UNDER THE LOAN AGREEMENT. It is
understood and agreed that payments required to be made to the Issuer under this
Loan Agreement are assigned and pledged to the Trustee under the Indenture. The
Company hereby assents to such assignment and pledge. The Company further agrees
that (i) all payments under this Loan Agreement shall be paid directly to the
Trustee for the account of the Issuer and shall be deposited in the Bond Fund;
and (ii) all payments required to be made as provided in Section 5.2(b) hereof
shall be paid directly to the Trustee for its own use, or any paying agents or
Counsel.

         SECTION 5.4       COMPANY'S PERFORMANCE UNDER INDENTURE. The Company
agrees, for the benefit of the holders from time to time of the Bonds, to do and
perform all acts and things contemplated in the Indenture to be done or
performed by it.

         SECTION 5.5       NO SET-OFF. The obligation of the Company to make the
payments required by this Loan Agreement shall be absolute and unconditional.
The Company will pay without abatement, diminution or deduction (whether for
taxes or otherwise) all such amounts regardless of any cause or circumstance
whatsoever including, without limitation, any defense, set-off, recoupment or
counterclaim that the Company may have or assert against the Issuer, the
Trustee, any Bondholder or any other person. The provisions of this Section 5.5,
however, are subject to the provisions of the last paragraph of Section 5.2.

         SECTION 5.6       PREPAYMENTS. The Company may prepay all or any part
of the amounts it is obligated to pay as provided in Section 601 of the
Indenture with respect to prepayment of the Bonds. Except as provided in this
Section 5.6 and in Sections 10.1, 10.2 and 10.3 hereof, the Company shall not be
entitled to cause the Bonds to be prepaid. The Company shall prepay all of the
amounts it is required to prepay as provided in Sections 10.2 and 10.3 hereof.

         SECTION 5.7       LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT. As a
further condition to the Issuer's financing the Project hereunder, the Company
shall:

         (a)      cause the Letter of Credit to be issued and delivered to the
Trustee as security for the Bonds and until the Conversion Date, cause a Credit
Facility meeting the requirements of Section 503 of the Indenture to be
maintained with the Trustee; and

                                       22
<PAGE>   28

         (b)      enter into the Reimbursement Agreement with the Bank in
form and substance satisfactory to the Bank and execute and deliver the other
Letter of Credit Documents required by the Bank.

                                   ARTICLE VI
                MAINTENANCE AND MODIFICATIONS; TAXES AND UTILITY
                      CHARGES; INSURANCE AND EMINENT DOMAIN

         SECTION 6.1       MAINTENANCE AND MODIFICATION OF THE PROJECT BY THE
                           COMPANY.

         (a)      The Company agrees that, until Payment of the Bonds shall be
made, it will at its own expense, (1) keep the Project or cause the Project to
be kept in as reasonably safe condition as its operations shall permit, (2) make
or cause to be made from time to time all necessary repairs thereto and renewals
and replacements thereof and otherwise keep the Project in good repair and in
good operating condition, and (3) not permit or suffer others to commit a
nuisance on or about the Project. The Company shall pay or cause to be paid all
costs and expenses of operation and maintenance of the Project.

         (b)      The Company may, at its own expense, make from time to time
any additions, modifications or improvements to the Project that it may deem
desirable for its business purposes and that do not materially impair the
effective use or decrease the value of the Project.

         SECTION 6.2       TAXES AND UTILITY CHARGES.

         (a)      The Company shall pay as the same respectively become due, (i)
all taxes, assessments, levies, claims and charges of any kind whatsoever that
may at any time be lawfully assessed or levied against or with respect to the
Project (including, without limiting the generality of the foregoing, any tax
upon or with respect to the income or profits of the Issuer from the Project and
that, if not paid, would become a charge on the payments to be made under this
Loan Agreement prior to or on a parity with the charge thereon created by the
Indenture and including ad valorem, sales and excise taxes, assessments and
charges upon the Company's interest in the Project), (2) all utility and other
charges incurred in the operation, maintenance, use, occupancy and upkeep of the
Project and (3) all assessments and charges lawfully made by any governmental
body for public improvements that may be secured by a lien on any portion of the
Project.

         (b)      The Company may, at its expense, contest in good faith any
such levy, tax, assessment, claim or other charge, but the Company may permit
the items so contested to remain undischarged and unsatisfied during the period
of such contest and any appeal therefrom only if the Company shall notify the
Issuer and the Trustee that in the opinion of Counsel, by non-payment of any
such items, the rights of the Trustee with respect to this Loan Agreement
created by the assignment under the Indenture, as to the rights assigned under
this Loan Agreement or any part of the payments to be made under this Loan
Agreement will not be materially endangered, nor will the Project or any part
thereof be subject to loss or

                                       23
<PAGE>   29

forfeiture. If the Company is unable to deliver such an opinion of Counsel, the
Company shall promptly pay or bond and cause to be satisfied or discharged all
such unpaid items or furnish, at the expense of the Company, indemnity
satisfactory to the Trustee; but provided further, that any tax, assessment,
charge, levy or claim shall be paid forthwith upon the commencement of
proceedings to foreclose any lien securing the same. The Issuer and the Trustee,
at the expense of the Company, will cooperate fully in any such permitted
contest.

         (c)      If the Company shall fail to pay any of the items required to
be paid by it pursuant to (a) above, the Issuer or the Trustee may (but shall be
under no obligation to) pay the same, and any amounts so advanced therefor by
the Issuer or the Trustee shall become an additional obligation of the Company
to the one making the advancement which amounts, together with interest thereon
at the Overdue Rate, from the date of payment, the Company agrees to pay on
demand therefor.

         (d)      The Company shall furnish the Issuer and the Trustee, upon
request, with proof of payment of any taxes, governmental charges, utility
charges, insurance premiums or other charges required to be paid by the Company
under this Loan Agreement.

         SECTION 6.3       CASUALTY AND LIABILITY INSURANCE REQUIRED. Until
Payment of the Bonds shall be made, the Company will keep the Project properly
and continuously insured against such risks as are customarily insured against
by businesses of like size and type engaged in the same or similar operations
(other than business interruption insurance) including, without limiting the
generality of the foregoing, all insurance required under the Reimbursement
Agreement or any of the Letter of Credit Documents;

         (a)      casualty insurance on the Project in an amount not less than
the full insurable value of all property located at, and all improvements to,
the Project, against loss or damage by fire and lightning and other hazards
ordinarily included under uniform broad form of extended coverage endorsement at
the time in use in the State;

         (b)      general comprehensive liability insurance against claims for
bodily injury, death or property damage occurring on, in or about the Project
(such coverage to include provisions waiving subrogation against the Issuer and
the Trustee) in amounts no less than $1,000,000 with respect to bodily injury to
any one person, $1,000,000 with respect to bodily injury to two or more persons
in any one accident and $1,000,000 with respect to property damage resulting
from any one occurrence;

         (c)      liability insurance with respect to the Project under the
workers' compensation laws of the State; provided, however, that the insurance
so required may be provided by blanket policies or under a self insurance
program now or hereafter maintained by the Company; and

         (d)      if at any time any portion of the Project is in an area that
has been identified by the Secretary of Housing and Urban Development as having
special flood and mudslide hazards, a policy of flood insurance covering
improvements located on such portion of the

                                       24
<PAGE>   30

Project with amounts and coverage reasonably satisfactory to the Trustee and the
Credit Facility Issuer.

         SECTION 6.4       GENERAL REQUIREMENTS APPLICABLE TO INSURANCE.

         (a)      Except as otherwise agreed to by the Credit Facility Issuer
during such time as a Credit Facility is in effect, each insurance policy
obtained in satisfaction of the requirements of Section 6.3 hereof:

                  (1)      shall be by such insurer (or insurers) as shall be
         financially responsible, qualified to do business in the State and of
         recognized standing;

                  (2)      shall be in such form and have such provisions
         (including, without limitation, the lenders long-form loss payable
         clause, the waiver of subrogation clause, the deductible amount, if
         any, and the standard mortgagee endorsement clause), as are generally
         considered standard provisions for the type of insurance involved and
         are acceptable in all respects to the Trustee and the Credit Facility
         Issuer;

                  (3)      shall prohibit cancellation or substantial
         modification, termination or lapse in coverage by the insurer without
         at least thirty (30) days' prior written notice to the Issuer, the
         Trustee and the Credit Facility Issuer;

                  (4)      shall provide that losses thereunder, prior to the
         occurrence of an Event of Default (or event which, with notice or lapse
         of time or both, would constitute an Event of Default) shall be
         adjusted with the insurer by the Company at its expense on behalf of
         the insured parties and the decision of the Company as to any
         adjustment shall be final and conclusive; and

                  (5)      without limiting the generality of the foregoing, all
         insurance policies carried on the Project shall name the Company, the
         Trustee and the Credit Facility Issuer as parties insured thereunder as
         the respective interests of each of such parties may appear, and any
         loss thereunder shall be made payable and shall be applied as provided
         in Section 6.8 hereof.

         (b)      Prior to expiration of any such policy, the Company shall
furnish the Issuer and the Trustee with evidence satisfactory to them that the
policy or certificate has been renewed or replaced in compliance with this Loan
Agreement or is no longer required by this Loan Agreement and the Credit
Facility Issuer.

         SECTION 6.5       ADVANCES BY THE ISSUER OR THE TRUSTEE. In the event
the Company shall fail to maintain, or cause to be maintained, the full
insurance coverage required by this Loan Agreement or shall fail to keep or
cause to be kept the Project in good repair and good operating condition, the
Issuer or the Trustee may (but shall be under no obligation to), after ten (10)
days written notice to the Company, contract for the required policies of
insurance and pay the premiums on the same or make any required repairs,
renewals and replacements; and the Company agrees to reimburse the Issuer and
the Trustee to the extent of the amounts so

                                       25
<PAGE>   31

advanced by them or any of them with interest thereon at the Overdue Rate, from
the date of advance to the date of reimbursement. Any amounts so advanced by the
Issuer or the Trustee shall become an additional obligation of the Company,
shall be payable on demand, and shall be deemed a part of the obligation of the
Company.

         SECTION 6.6       COMPANY TO MAKE UP DEFICIENCY IN INSURANCE COVERAGE.
The Company agrees that to the extent that it shall not carry insurance required
by Sections 6.3 and 6.4 hereof, it shall pay promptly to the Trustee for
application in accordance with the provisions of Section 6.8 hereof, such amount
as would have been received as Net Proceeds by the Trustee under the provisions
of Section 6.8 hereof had such insurance been carried to the extent required.

         SECTION 6.7       EMINENT DOMAIN. Unless the Company shall have prepaid
its obligations pursuant to the provisions of Article X hereof, in the event
that title to, or the temporary use of, the Project or any part thereof shall be
taken by Eminent Domain, the Company shall be obligated to continue to make the
payments required to be made pursuant to this Loan Agreement and the Net
Proceeds received as a result of such Eminent Domain shall be applied as
provided in Section 6.8(b) hereof.

         SECTION 6.8       APPLICATION OF NET PROCEEDS OF INSURANCE AND EMINENT
                           DOMAIN.

         (a)      Except as otherwise agreed to by the Credit Facility Issuer
during such time as a Credit Facility is in effect, the Net Proceeds of the
insurance carried pursuant to the provisions of Sections 6.3(b) and 6.3(c)
hereof shall be applied by the Company toward extinguishment of the defect or
claim or satisfaction of the liability with respect to which such insurance
proceeds may be paid.

         (b)      Except as otherwise provided in the Reimbursement Agreement
(which shall govern during such time that the Credit Facility is in effect), the
Net Proceeds of the insurance carried with respect to the Project pursuant to
the provisions of Sections 6.3(a) and (d) hereof (excluding the Net Proceeds of
any business interruption insurance, which shall be paid to the Company), and
the Net Proceeds resulting from Eminent Domain shall be paid to the Trustee and
applied as follows:

                  (1)      If the amount of the Net Proceeds does not exceed
         $50,000, the Net Proceeds shall be paid to the Company and shall be
         applied to any repair, replacement, renewal or improvement of the
         Project, if any, as the Company deems necessary.

                  (2)      If the amount of the Net Proceeds exceeds $50,000,
         the Net Proceeds shall be paid to and held by the Trustee as a special
         trust fund and invested in accordance with Section 502 of the Indenture
         and the provisions of Article XI hereof pending receipt of written
         instructions from the Company. At the option of the Company, to be
         exercised within the period of ninety (90) days from the receipt by the
         Trustee of such Net Proceeds, the Company shall advise the Trustee that
         (A) the Company will use the Net Proceeds for the repair, replacement,
         renewal or improvement of the Project (such funds to be delivered by
         the Trustee to the

                                       26
<PAGE>   32

         Company), or (B) the Net Proceeds shall be applied to the prepayment of
         the Bonds as provided in Section 10.1 hereof. If the Company does not
         advise the Trustee within said period of ninety (90) days that it
         elects to proceed under clause (A) to use such Net Proceeds for the
         repair, replacement, renewal or improvement of the Project, such Net
         Proceeds shall be applied to the prepayment of the Bonds pursuant to
         Article X hereof. Any prepayment pursuant to the preceding sentence
         shall be effected on the next Interest Payment Date not less than
         thirty (30) days after the expiration of said period of ninety (90)
         days without an election by the Company.

         (c)      The Company agrees that if it shall elect to use the moneys
paid to the Trustee pursuant to subsection (b)(2) of this Section 6.8 for the
repair, replacement, renewal or improvement of the Project, it will restore the
Project, or cause the same to be done, to a condition substantially equivalent
to its condition prior to the occurrence of the event to which the Net Proceeds
were attributable. To the extent that the Net Proceeds are not sufficient to
restore or replace the Project, the Company shall use its own funds to complete
the restoration or replacement of the Project. Prior to the commencement of such
work, the Trustee may require the Company to furnish a completion bond, escrow
deposit or other satisfactory evidence of the Company's ability to pay or
provide for the payment of any estimated costs in excess of the amount of the
Net Proceeds. Any balance remaining after any such application of such Net
Proceeds shall be paid to the Company. The Company shall be entitled to the Net
Proceeds of any insurance or resulting from Eminent Domain relating to property
of the Company not included in the Project and not providing security for this
Loan Agreement.

         SECTION 6.9       PARTIES TO GIVE NOTICE. In case of any material
damage to or destruction of all or any part of the Project, the Company shall
give prompt notice thereof to the Issuer, the Credit Facility Issuer and the
Trustee. In case of a taking or proposed taking of all or any part of the
Project or any right therein by Eminent Domain, the Company shall give prompt
notice thereof to the Issuer, the Credit Facility Issuer and the Trustee. Each
such notice shall describe generally the nature and extent of such damage,
destruction, taking, loss, proceeding or negotiations.

         SECTION 6.10      NO WARRANTY OF CONDITION OR SUITABILITY BY ISSUER.
The Company recognizes that the Issuer does not deal in goods of the kind
comprising components of the Project or otherwise hold itself out as having
knowledge or skill peculiar to the practices or goods involved in the Project,
and that the Issuer is not one to whom such knowledge or skill may be attributed
by its employment of an agent or broker or other intermediary who by his
occupation holds himself out as having such knowledge or skill. The Company
further recognizes that since the components of the Project have been and are to
be designated and selected by the Company, THE ISSUER HAS NOT MADE AN INSPECTION
OF THE PROJECT OR OF ANY FIXTURE OR OTHER ITEM CONSTITUTING A PORTION THEREOF,
AND, EXCEPT AS OTHERWISE PROVIDED HEREIN, THE ISSUER MAKES NO WARRANTY OR
REPRESENTATION, EXPRESS OR IMPLIED OR OTHERWISE, WITH RESPECT TO THE SAME OR TO
THE LOCATION, USE, DESCRIPTION, DESIGN, MERCHANTABILITY, FITNESS FOR USE FOR ANY
PARTICULAR PURPOSE, CONDITION OR DURABILITY THEREOF, TO THE

                                       27
<PAGE>   33

QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, IT BEING AGREED THAT ALL RISKS
INCIDENT THERETO ARE TO BE BORNE BY THE COMPANY. IN THE EVENT OF ANY DEFECT OR
DEFICIENCY OF ANY NATURE IN THE PROJECT OR ANY FIXTURE OR OTHER ITEM
CONSTITUTING A PORTION THEREOF, OR WHETHER PATENT OR LATENT, THE ISSUER SHALL
HAVE NO RESPONSIBILITY OR LIABILITY WITH RESPECT THERETO. THE PROVISIONS OF THIS
SECTION HAVE BEEN NEGOTIATED AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND
NEGATION OF ANY WARRANTIES OR REPRESENTATIONS BY THE ISSUER, EXPRESS OR IMPLIED
(TO THE EXTENT PERMITTED BY APPLICABLE LAW), WITH RESPECT TO THE PROJECT OR ANY
FIXTURE OR OTHER ITEM CONSTITUTING A PORTION THEREOF, WHETHER ARISING PURSUANT
TO THE U.C.C. OR ANOTHER LAW NOW OR HEREAFTER IN EFFECT OR OTHERWISE.

                                       28
<PAGE>   34

                                  ARTICLE VII
                                SPECIAL COVENANTS

         SECTION 7.1       ACCESS TO THE PROJECT AND INSPECTION. The Credit
Facility Issuer, the Trustee and the Issuer shall have the right, at all
reasonable times upon the furnishing of reasonable notice to the Company under
the circumstances, to enter upon the Project site and to examine and inspect the
Project. The Trustee, the Credit Facility Issuer, the Issuer and their duly
authorized agents shall also have such right of access to the Project as may be
reasonably necessary for its proper maintenance, in the event of failure by the
Company to perform its obligations relating to maintenance under this Loan
Agreement. The Company hereby covenants to execute, acknowledge and deliver all
such further documents, and do all such other acts and things as may be
reasonably necessary to grant to the Credit Facility Issuer, the Trustee and the
Issuer such right of entry. The Credit Facility Issuer, the Trustee and the
Issuer shall also be permitted, at all reasonable times, to examine the books
and records of the Company with respect to obligations of the Company hereunder,
but neither shall be entitled to access to trade secrets or other proprietary
information (other than financial information) of the Company. All information
obtained in any such examination shall be kept confidential and shall not be
disclosed except in connection with any proceedings to enforce the Company's
obligations hereunder.

         SECTION 7.2       FURTHER ASSURANCES AND CORRECTIVE INSTRUMENTS.
Subject to the provisions of the Indenture, the Issuer and the Company agree
that they will, from time to time, execute, acknowledge and deliver, or cause to
be executed, acknowledged and delivered, such supplements and amendments hereto
and such further instruments as may reasonably be required for correcting any
inadequate or incorrect description of the Project and for carrying out the
intention or facilitating the performance of this Loan Agreement.

         SECTION 7.3       RECORDING AND FILING; OTHER INSTRUMENTS.

         (a)      The Company covenants that it will, upon the request of the
Trustee and at the Company's expense, cause Counsel in the State to take all
steps as are reasonably necessary to render an opinion to the Issuer and the
Trustee to the effect that all financing statements, continuation statements,
notices and other instruments required by applicable law have been recorded or
filed or re-recorded or re-filed in such manner and in such places required by
law in order to fully preserve and protect the rights of the Trustee in the
granting by the Issuer of certain rights of the Issuer, pursuant to the
Indenture, under this Loan Agreement.

         (b)      The Company, the Issuer and the Trustee shall execute and
deliver all instruments and shall furnish all information and evidence deemed
necessary or advisable by such Counsel to enable such Counsel to render the
opinion referred to in subsection (a) of this Section. The Company, at the
request of the Trustee, shall file and re-file and record and re-record or cause
to be filed and re-filed and recorded and re-recorded all instruments required
to be filed and re-filed and recorded or re-recorded pursuant to the opinion of
such Counsel and shall continue or cause to be continued the liens of such
instruments for so long as the Bonds shall be outstanding, except as otherwise
required by this Loan Agreement.

                                       29
<PAGE>   35

         SECTION 7.4       ARBITRAGE COVENANTS: NOTICE OF EVENT OF TAXABILITY.

         (a)      Neither the Company nor the Issuer shall take any action or
fail to take any action, and the Company covenants that it will not approve the
Trustee's taking any action or failure to take any action or making any
investment or use of the proceeds of the Bonds, if such action, use or failure
would adversely affect the tax-exempt status of the interest on the Bonds under
Section 103 of the Code or cause any of the Bonds to be an "arbitrage bond"
within the meaning of Section 148 of the Code and the Regulations as the same
may be applicable to the Bonds at the time of such action, investment or use.

         (b)      The Company shall give prompt written notice to the Issuer,
the Department and the Trustee of the filing by the Company of any statement,
tax schedule, return or document with the Internal Revenue Service which
discloses that an Event of Taxability shall have occurred and its receipt of any
oral or written advice from the Internal Revenue Service that an Event of
Taxability shall have occurred.

         (c)      The Company acknowledges that it has examined the provisions
of this Loan Agreement and the certificates executed by the Company in
connection with the issuance of the Bonds relating to compliance with the Code
and shall comply in all material respects with the covenants, instructions and
guidelines contained herein and therein. The Company's obligation herein and/or
therein to make any rebate payments and to prepare and furnish to the Issuer and
the Trustee the statements and forms described herein and/or therein shall
survive payment in full of the Bonds notwithstanding any provision of this Loan
Agreement to the contrary.

         (d)      The Company and the Issuer also covenant and agree that the
Company and the Issuer will furnish accurate information necessary to enable
Bond Counsel to make any certifications which might be required under the
Regulations.

         (e)      Whenever the Issuer shall be required to file, deliver or
execute, or produce any reports, notices of other documents while the Bonds are
outstanding, the Company shall furnish or cause the proper person to furnish in
due time to the Issuer, through the attorney for the Issuer, the completed form
of such report, notice or other required document together with (i) a
certification by the Company or other proper person required to provide
information that such document is accurate, and (ii) if requested by the Issuer
or if otherwise required herein or in the Indenture, an opinion of Bond Counsel
addressed to the Issuer that the report or other document is not in violation of
any provision of law or of the documents constituting the complete transcript of
proceedings relating to the issuance of the Bonds and that such report, notice
or other required document meets the legal requirements for such filing,
delivery or execution. In the event of the failure or refusal of the Company or
other proper person to comply with this provision, the Company agrees to pay the
statement for reasonable and actual attorney's fees and administrative time
presented by the Issuer for filing, delivering or executing such report or
documents, such statement to be paid within thirty (30) days after written
notice to the Company by the Issuer.

         (f)      In order to insure that interest on the Bonds is not and will
not become subject to federal income taxes as a result of failure of the Bonds
to satisfy the requirement of

                                       30
<PAGE>   36

Section 149(e) of the Code, the Company covenants with the Issuer and the
Trustee that it will, on or before the date of issuance of the Bonds supply to
the Issuer and the Trustee all information required under Internal Revenue
Service Form 8038, Information Return for Private Activity Bond Issues (Form
8038), including without limitation the following:

                  (1)      the name and address of the Issuer;

                  (2)      the date of issue, the amount of lendable proceeds of
         the issue, and the stated interest rate, term and face amount of each
         obligation which is part of the issue;

                  (3)      where required, the name of the applicable elected
         representative who approved the issue, or a description of the voter
         referendum by which the issue was approved; and

                  (4)      a description of any property to be refinanced from
         the proceeds of the issue.

         The Company further covenants that on or before the due date thereof,
it will cause Form 8038 to be completed, executed and filed with the appropriate
office of the Internal Revenue Service.

         (g)      Rebate. The Company agrees to take all steps necessary to
compute and pay any rebatable arbitrage in accordance with Section 148(f) of the
Code, including:

                  (1)      Delivery of Documents and Money on Computation Dates.
         The Company shall deliver to the Trustee, within 55 days after each
         Computation Date,

                           (a)      a statement, signed by an officer of the
                  Company, stating the Rebate Amount as of such Computation
                  Date; and

                           (b)      (a) if such Computation Date is an
                  Installment Computation Date, an amount that, together with
                  any amount then held for the credit of the Rebate Fund, is
                  equal to at least 90% of the Rebate Amount in respect of the
                  Bonds as of such Installment Computation Date, less any prior
                  payments made to the United States for "rebatable arbitrage"
                  (as that term is defined in Section 148(f) of the Code) in
                  respect of the Bonds, or (b) if such Computation Date is the
                  Final Computation Date, an amount which, together with any
                  amount then held for the credit of the Rebate Fund in respect
                  of the Bonds, is equal to the Rebate Amount as of such Final
                  Computation Date, less any prior payments made to the United
                  States for "rebatable arbitrage" (as that term is defined in
                  Section 148(f) of the Code) in respect of such issue of Bonds;
                  and

                           (c)      an Internal Revenue Service Form 8038-T
                  completed as of such Computation Date.

                                       31
<PAGE>   37

                  (2)      Correction of Underpayments. If the Company shall
         discover or be notified as of any date that any payment paid to the
         United States Treasury pursuant to this Section of an amount described
         above shall have failed to satisfy any requirement of Section 1.148-3
         of the Regulations (whether or not such failure shall be due to any
         default by the Company, the Issuer, or the Trustee), the Company shall
         (1) pay to the Trustee (for deposit to the Rebate Fund) and cause the
         Trustee to pay to the United States Treasury from the Rebate Fund the
         Rebate Amount, together with any penalty and/or interest due, as
         specified in Section 1.148-3(h) of the Regulations, within 175 days
         after any discovery or notice and (2) deliver to the Trustee an
         Internal Revenue Service Form 8038-T completed as of such date. If such
         Rebate Amount, together with any penalty and/or interest due, is not
         paid to the United States Treasury in the amount and manner and by the
         time specified in the Regulations the Company shall take such steps as
         are necessary to prevent the Bonds from becoming arbitrage bonds,
         within the meaning of Section 148 of the Code.

                  (3)      Records. The Company shall retain all of its
         accounting records relating to the Debt Service Fund and the Rebate
         Fund and all calculations made in preparing the statements described in
         this Section for at least six years after the later of the final
         maturity of the Bonds or the first date on which no Bonds are
         outstanding for federal income tax purposes.

                  (4)      Fees and Expenses. The Company agrees to pay all of
         the fees and expenses of a nationally-recognized bond counsel, a
         certified public accountant and any other necessary consultant employed
         by the Company, the Trustee or the Issuer in connection with computing
         the Rebate Amount.

                  (5)      No Diversion of Rebatable Arbitrage. The Company will
         not indirectly pay any amount otherwise payable to the federal
         government pursuant to the foregoing requirements to any person other
         than the federal government by entering into any investment arrangement
         with respect to the gross proceeds of the Bonds that is not purchased
         at fair market value or includes terms that the Company would not have
         included if the Bonds were not subject to Section 148(f) of the Code.

                  (6)      Modification of Requirements. If at any time during
         the term of this Agreement the Issuer, the Trustee, or the Company
         desires to take any action that would otherwise be prohibited by the
         terms of this Section, such Person shall be permitted to take such
         action if it shall first obtain and provide to the other Persons named
         herein an Opinion of Bond Counsel to the effect that such action shall
         not adversely affect the exclusion of interest on the Bonds from gross
         income of the Holders thereof for federal income tax purposes and shall
         be in compliance with the laws of the State of Texas and the terms of
         this Agreement.

         SECTION 7.5       NO PROHIBITED PAYMENTS. The Company covenants and
agrees that it will not purchase, nor will it direct the Trustee to purchase,
any Non-Purpose Investment for a price in excess of the Fair Market Value of
such investment. This Section shall apply to all

                                       32
<PAGE>   38

investments made by the Company and the Trustee under the Indenture, except for
investments of moneys in the Bond Fund in any Bond Year in which earnings on
investments in the Bond Fund do not exceed $100,000.00.

         SECTION 7.6       PERMITTED INVESTMENTS: PROHIBITED PAYMENTS. Reference
is made to Section 6.2 of the Indenture, wherein the investments permitted to be
made by the Trustee are set forth. For the purpose of determining the Fair
Market Value of an investment, the following rules shall apply:

                  (1)      The Fair Market Value of a United States Treasury
         obligation purchased directly from the United States Treasury is its
         purchase price.

                  (2)      The purchase price of a certificate of deposit is
         treated as its Fair Market Value if the yield on such certificate of
         deposit is not less than (i) the yield on reasonably comparable direct
         obligations of the United States and (ii) the highest yield that is
         published or posted by the provider to be currently available from the
         provider on reasonably comparable certificates of deposit offered to
         the public.

                  (3)      The purchase price of a guaranteed investment
         contract is treated as its Fair Market Value on the purchase date if
         the requirements of Section 1.148-5(d)(6)(iii) of the Regulations are
         satisfied.

         Any investment not described in subsections (1), (2), or (3) of this
Section 7.6 or which is not alternatively of a type traded on an established
securities market, within the meaning of Section 1273 of the Code, or otherwise
within the definition of Investment Obligations shall not be permitted unless
the Trustee receives, if the Trustee so requests, an opinion of Bond Counsel
that such investment will not adversely affect the tax-exempt status of the
Bonds. The Company agrees that it shall bear the cost of obtaining such opinion
and shall not require the Trustee to make any such investment without said
opinion of Bond Counsel.

         SECTION 7.7       INVESTMENT IN TAX-EXEMPT SECURITIES. Notwithstanding
anything to the contrary in Section 7.5 or 7.6, the Trustee may invest moneys
under the terms of the Indenture in tax-exempt obligations described in Section
103(a) of the Code without obtaining any opinion of Bond Counsel, if and to the
extent permitted by the Indenture, but all such investments shall be directed
and authorized by the Company.

         SECTION 7.8       ADMINISTRATIVE EXPENSES. The Company shall pay to or
for the account of the Issuer within thirty (30) days after notice thereof all
reasonable and actual costs and expenses incurred by the Issuer in connection
with the financing and administration of the Project, except such as may be paid
out of the proceeds of the Bonds on deposit in the Project Fund, including,
without limitation, the costs of administering this Loan Agreement and the fees
and expenses of the Trustee, attorneys, consultants and others.

                                       33
<PAGE>   39

         SECTION 7.9       INDEMNITY AGAINST CLAIMS.

         (a)      The Company will pay and discharge and will indemnify and hold
harmless the Issuer and the Trustee from (1) any lien or charge upon amounts
payable hereunder by the Company to the Issuer, and (2) any taxes, assessments,
impositions and other charges in respect of the Project.

         (b)      If any claim of any such lien or charge upon payments, or any
such taxes, assessments, impositions or other charges, are sought to be imposed,
the Issuer or the Trustee, as the case may be, will give prompt notice to the
Company, and the Company shall have the right and duty to assume, and shall
assume, the defense thereof, with full power to litigate, compromise or settle
the same in its sole discretion.

         SECTION 7.10      INDEMNITY OF ISSUER, THE DEPARTMENT AND TRUSTEE. If
the Issuer, the Department or the Trustee, or any director, member, employee,
officer, attorney or agent thereof (collectively the "Indemnified Persons") is
made a party defendant to any litigation concerning the Project or any part
thereof, or concerning the occupancy thereof by the Company, or concerning the
issuance of the Bonds, the Company agrees to indemnify, defend and hold
Indemnified Persons harmless from and against any and all liability by reason of
such litigation, including reasonable and actual attorneys' fees and expenses
incurred by the Indemnified Persons, whether or not any such litigation is
prosecuted to judgment. If the Indemnified Persons commence an action against
the Company to enforce any of the terms of any of the documents executed in
connection with the Bonds, or for the breach by the Company of any such terms,
the Company shall pay to the Indemnified Persons reasonable and actual
attorneys' fees and expenses in connection with such action, and the right to
such attorneys' fees and expenses shall be enforceable whether or not such
action is prosecuted to judgment. If the Company breaches any term of any of the
documents executed in connection with the Bonds, the Indemnified Persons may
employ an attorney or attorneys to protect its rights, and in the event of such
employment following any such breach by the Company, the Company shall pay the
reasonable and actual attorneys' fees and expenses of the Indemnified Persons so
incurred, whether or not any action is actually commenced against the Company by
reason of such breach.

         (a)      It is the intention of the parties that the Indemnified
Persons shall not incur pecuniary liability by reason of the terms of this
Agreement or by reason of the undertakings of the Indemnified Persons required
hereunder in connection with the issuance of the Bonds or execution of this Loan
Agreement or the Indenture or in connection with the performance of any act by
the Indemnified Persons requested by the Company or in any way arising from the
transaction with which this Agreement is a part arising in any manner in
connection with the Project or financing of the Project; nevertheless, if any of
the Indemnified Persons should incur any such pecuniary liability, then in such
event the Company shall indemnify and hold the Indemnified Persons harmless
against all claims by and on behalf of any person arising out of the same, and
all costs incurred in connection with any claim, action or proceeding brought
thereon, and upon notice from the Indemnified Persons, the Company shall defend
the Indemnified Persons in any such action, or proceeding in consultation with
counsel for the

                                       34
<PAGE>   40

Indemnified Persons. In the event any proceeding shall be initiated against any
of the Indemnified Persons, the Company shall furnish a defense to the
Indemnified Persons, shall be permitted to control, in the exercise of its
reasonable judgment, the defense of any such action or proceeding, and pay all
fees of counsel to the Indemnified Persons. Any settlement of litigation that
involves the Issuer shall require the consent of the Issuer.

         Notwithstanding anything to the contrary contained herein, the Company
shall have no liability to indemnify the Issuer, the Department or the Trustee
against claims or damages resulting from the Indemnified Persons' own willful
misconduct, bad faith or fraud.

         (b)      No recourse shall be had for the enforcement of any
obligation, promise or agreement of the Indemnified Persons contained herein or
in the other documents to which the Indemnified Persons is a party or for any
claim based hereon or otherwise in respect hereof or thereof against any
director, member, officer, agent, attorney or employee, as such, in his
individual capacity, past, present or future, of the Indemnified Persons or of
any successor entity, either directly or through the Indemnified Persons or any
successor entity whether by virtue of any constitutional provision, statute or
rule of law, or by the enforcement of any assessment or penalty or otherwise. No
personal liability whatsoever shall attach to, or be incurred by, any director,
member, officer, agent, attorney or employee as such, past, present or future,
of the Indemnified Persons or any successor entity, either directly or through
the Indemnified Persons or any successor entity, under or by reason of any of
the obligations, promises or agreements entered into between the Indemnified
Persons and the Company, whether herein contained or to be implied herefrom as
being supplemental hereto; and all personal liability of that character against
every such director, member, officer, agent, attorney and employee is, by the
execution of this Loan Agreement and as a condition of, and as part of the
consideration for execution of this Loan Agreement, expressly waived and
released.

         Notwithstanding any other provision of this Loan Agreement, the Issuer
shall not be liable to the Company or the Trustee or any other person for any
failure of the Issuer to take action under this Loan Agreement unless the Issuer
(a) is requested in writing by an appropriate person to take such action, (b) is
assured of payment of, or reimbursement for, any reasonable expenses in such
action, and (c) is afforded, under the existing circumstances, a reasonable
period to take such action. In acting under this Loan Agreement, or in
refraining from acting under this Loan Agreement, the Issuer may conclusively
rely on the advice of its counsel.

         SECTION 7.11      ADDITIONAL INFORMATION. Until payment of the Bonds
shall have occurred, the Company shall promptly from time to time deliver to the
Trustee such information regarding the operations, business affairs and
financial condition of the Company as the Trustee may reasonably request. The
Trustee is hereby authorized to deliver a copy of any such financial information
delivered hereunder to any regulatory authority having jurisdiction over the
Trustee and to any other Person as may be required by law. The Issuer and the
Trustee are authorized to provide information concerning the outstanding
principal amount and payment history of, and other information pertaining to,
the Bonds to any agency or regulatory authority of the State requesting such
information.

                                       35
<PAGE>   41

         SECTION 7.12      DEFAULT CERTIFICATES. The Company shall deliver to
the Trustee forthwith, upon obtaining knowledge of any Event of Default
hereunder, under the Indenture or the Reimbursement Agreement, or an event which
would constitute such an Event of Default but for the requirement that notice be
given or time elapse or both, a certificate of the Company specifying the nature
and period of existence thereof and what action the Company proposes to take
with respect thereto.

         SECTION 7.13      OBSERVE LAWS. The Company shall observe in all
material respects all applicable laws, regulations and other valid requirements
of any regulatory authority with respect to its operations at the Project.

                                       36
<PAGE>   42

                                  ARTICLE VIII
                         ASSIGNMENT, LEASING AND SELLING

         SECTION 8.1       ASSIGNMENT OF THIS LOAN AGREEMENT OR LEASE OR SALE OF
THE PROJECT BY THE COMPANY. The rights of the Company under this Loan Agreement
may be assigned, and the Project may be leased or sold as a whole or in part,
without the necessity of obtaining the consent of the Issuer or the Trustee,
subject to the following conditions:

         (a)      no assignment, transfer, sale or lease shall relieve the
Company from primary liability for any of its obligations hereunder, and if any
such assignment, transfer, sale or lease occurs, the Company shall continue to
remain primarily liable for the payments specified herein and for performance
and observance of the other agreements on its part herein provided to be
performed and observed by it, subject to the provisions of the last paragraph of
Section 5.2;

         (b)      the assignee, lessee or purchaser shall assume the obligations
of the Company hereunder to the extent of the interest assigned, leased or sold
(except to the extent such lease relates to less than ten percent (10%) of the
property and is on a temporary or transitional basis and does not adversely
effect the tax-exempt status of the Bonds);

         (c)      the Company shall, within thirty (30) days after the delivery
thereof, furnish or cause to be furnished to the Issuer and to the Trustee a
true and complete copy of each such assignment, instrument of transfer, lease or
sale agreement, as the case may be, together with any instrument of assumption;

         (d)      the Company shall, prior to such assignment, transfer, sale or
lease, deliver to the Trustee an opinion of Bond Counsel to the effect that such
assignment, transfer, sale or lease does not adversely affect the legality of
the Bonds or the exclusion of interest on the Bonds from gross income for
federal income tax purposes; and

         (e)      if a Credit Facility is in effect, such assignment, transfer,
sale or lease must be permitted under the Reimbursement Agreement or the Credit
Facility Issuer must have given its prior written consent to such assignment,
transfer, sale or lease.

         SECTION 8.2       RESTRICTIONS ON TRANSFER OF THE ISSUER'S RIGHTS.
Except for the assignment made pursuant to the Indenture of certain of its
rights under this Loan Agreement, the Issuer will not during the term of this
Loan Agreement sell, assign, transfer or convey any of its interests in this
Loan Agreement except as hereinafter provided in Section 8.3 hereof.

         SECTION 8.3       ASSIGNMENT BY THE ISSUER. It is understood, agreed
and acknowledged that the Issuer, as security for payment of the principal of
and interest on the Bonds, will grant to the Trustee pursuant to the Indenture,
inter alia, certain of its right, title and interest in and to this Loan
Agreement (reserving certain of its rights, as more particularly described in
the Indenture).

                                       37
<PAGE>   43

                                   ARTICLE IX
                         EVENTS OF DEFAULT AND REMEDIES

         SECTION 9.1       EVENTS OF DEFAULT DEFINED. The term "Event of
Default" shall mean any one or more of the following events:

         (a)      the failure by the Company to pay when due on the first
Business Day of each month beginning on November 1, 2000, any payment of
principal of or interest on or other amount payable under Section 5.2 of this
Loan Agreement;

         (b)      [Reserved.]

         (c)      the failure of the Company to perform any of its obligations
under Section 7.4 hereof provided, however, that unless an Event of Taxability
shall have occurred the Company shall be afforded a thirty (30) day cure period
after notice of same from the Issuer or the Trustee to perform such obligations;

         (d)      the occurrence of an "Event of Default" or "event of default"
under any of the other Bond Documents upon the expiration of any applicable
notice or cure period;

         (e)      any representation or warranty of the Company contained in
Section 2.2 hereof, or in any document, instrument or certificate delivered
pursuant hereto or to the Indenture or in connection with the issuance and sale
of the Bonds shall be false, misleading or incomplete in any material respect on
the date as of which made and to the extent curable, has not been cured within
thirty (30) days after notice of same from the Issuer or the Trustee;

         (f)      failure by the Company to observe and perform any covenant,
condition or agreement on the part of the Company under this Loan Agreement,
other than as referred to in the preceding paragraphs of this Section 9.1, for a
period of thirty (30) days after written notice, specifying such failure and
requesting that it be remedied, is given to the Company by the Issuer or the
Trustee, unless the Issuer and the Trustee shall agree in writing to an
extension of such time prior to its expiration; provided, however, if such
default shall be such that it cannot be corrected within the applicable period,
it shall not constitute an Event of Default if corrective action is instituted
by the Company within the applicable period and diligently pursued until the
default is corrected;

         (g)      the commencement against the Company of an involuntary case
under the federal bankruptcy laws, as now constituted or hereafter amended, or
any other applicable federal or state bankruptcy, insolvency or other similar
law, or of any action or proceeding for the appointment of a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Company or for any substantial part of its property, or for the winding-up
or liquidation of its affairs and the continuance of any such case, action, or
proceeding unstayed and in effect for a period of ninety (90) consecutive days;
or

         (h)      the commencement by the Company of a voluntary case under the
federal bankruptcy laws, as now constituted or hereafter amended, or any other
applicable federal or

                                       38
<PAGE>   44

state bankruptcy, insolvency or other similar law, or the consent by it to, or
its acquiescence in the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar
official) of the Company or of any substantial part of its property, or the
making by it of or the consent by it to any assignment for the benefit of
creditors, or the failure of the Company generally to pay its debts as such
debts become due, or the taking of any action by the Company in furtherance of
any of the foregoing.

         SECTION 9.2 REMEDIES ON DEFAULT.

         (a)      If Payment of the Bonds shall not have been made, whenever any
Event of Default referred to in Section 9.1 hereof shall have happened and shall
not have been waived:

                  (1)      The Issuer may, by written notice, declare all
         installments of principal repayable pursuant to this Loan Agreement for
         the remainder of the term hereof to be immediately due and payable,
         whereupon the same, together with accrued interest thereon as provided
         for in this Loan Agreement, shall become immediately due and payable
         without presentment, demand, protest or any other notice whatsoever,
         all of which are hereby expressly waived by the Company; provided,
         however, all such amounts shall automatically be and become immediately
         due and payable without notice upon the occurrence of any event
         described in Section 9.1(g) or 9.1(h) hereof, which notice the Company
         hereby expressly waives.

                  (2)      The Issuer may take whatever other action at law or
         in equity may appear necessary or desirable to collect the amounts
         payable pursuant to this Loan Agreement then due and thereafter to
         become due, or to enforce the performance and observance of any
         obligation, agreement or covenant of the Company under this Loan
         Agreement or under any of the other Bond Documents.

         (b)      In the enforcement of the remedies provided in this Section
9.2, the Issuer may treat all reasonable expenses of enforcement including,
without limitation, legal, accounting and advertising fees and expenses, as
additional amounts payable by the Company then due and owing, and the Company
agrees to pay such additional amounts upon demand, the amount of such legal fees
to be without regard to any statutory presumption.

         SECTION 9.3       APPLICATION OF AMOUNTS REALIZED IN ENFORCEMENT OF
REMEDIES. Any amounts collected pursuant to action taken under Section 9.2
hereof shall be paid to the Trustee and applied as set forth in Article VIII of
the Indenture.

         SECTION 9.4       NO REMEDY EXCLUSIVE. No remedy herein conferred upon
or reserved to the Issuer is intended to be exclusive of any other available
remedy or remedies, but each and every such remedy shall be cumulative and shall
be in addition to every other remedy given under this Loan Agreement or now or
hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon the occurrence of an Event of Default
shall impair any such right or power or shall be construed to be a waiver
thereof, but any such right and power may be exercised from time to time and as
often as may be deemed expedient.

                                       39
<PAGE>   45

         SECTION 9.5       AGREEMENT TO PAY ATTORNEYS' FEES AND EXPENSES. In any
Event of Default, if the Issuer, the Trustee, the Credit Facility Issuer or any
Bondholder employs attorneys or incurs other expenses for the collection of
amounts payable hereunder or for the enforcement of the performance or
observance of any covenants or agreements on the part of the Company herein
contained, the Company agrees that it will on demand therefor pay to the Issuer,
the Trustee, the Credit Facility Issuer or such Bondholder the reasonable and
actual fees of such attorneys and such other reasonable expenses so incurred by
the Issuer, the Trustee, the Credit Facility Issuer or such Bondholder, the
amount of such fees of attorneys to be without regard to any statutory
presumption.

         SECTION 9.6       CORRELATIVE WAIVERS. If an "Event of Default" under
Section 801 of the Indenture shall be cured or waived and any remedial action by
the Trustee rescinded, any correlative default under this Loan Agreement shall
be deemed to have been cured or waived.

                                       40
<PAGE>   46

                                    ARTICLE X
                                   PREPAYMENTS

         SECTION 10.1      OPTIONAL PREPAYMENTS.

         (a)      The Company is hereby granted, and shall have, the option to
prepay the unpaid principal of the Bonds in whole or in part in accordance with
and as set forth in Section 601(a) of the Indenture with respect to the
prepayment of the Bonds; provided, all prepayments shall be made in immediately
available funds and with interest accrued to the date of prepayment and that any
prepayment of the Bonds in part shall be applied to unpaid installments of
principal in inverse order of maturity. Any prepayment pursuant to this
subsection (a) shall be made by the Company taking, or causing the Issuer to
take, the actions required (1) for Payment of the Bonds, in the case of
prepayment of the Bonds in whole, or (2) to effect prepayment of less than all
of the Bonds according to their terms in the case of a partial prepayment Bonds.

         (b)      To exercise the option granted in subsection (a) of this
Section 10.1, the Company shall give written notice to the Issuer and the
Trustee which shall specify therein (i) the date of the intended prepayment of
the Bonds, which shall not be less than forty-five (45) nor more than sixty (60)
days from the date the notice is mailed and (2) the principal amount of the
Bonds to be prepaid. When given, such notice shall be irrevocable by the Company
unless the Company in such notice states that it is revocable and requests that
the notice of the Trustee to the Bondholders pursuant to Section 604 of the
Indenture be conditioned on the deposit of Available Moneys with the Trustee no
later than the redemption date of the Bonds.

         SECTION 10.2      MANDATORY PREPAYMENTS.

         (a)      In the event of a Determination of Taxability, the Company
shall, on a date selected by the Company not more than one hundred eighty (180)
days following the receipt by the Trustee of written notice of a Determination
of Taxability, prepay the entire unpaid principal balance of the Bonds in full.
Immediately upon the occurrence of a Determination of Taxability, the Company
shall notify the Issuer and the Trustee of the date selected for payment
pursuant to this Section 10.2.

         (b)      During the Variable Rate Period, in the event any Credit
Facility is not renewed and an Alternate Credit Facility has not been provided
in accordance with Section 503 of the Indenture, the Company shall on or before
the Interest Payment Date occurring closest to but not after fifteen (15) days
prior to the expiration date of the then current Credit Facility, prepay the
entire unpaid principal balance of the Bonds in full. The Company shall promptly
notify the Issuer and the Trustee of the date selected for such payment.

         SECTION 10.3      OTHER MANDATORY PREPAYMENTS. The amounts required to
be applied to the prepayment of the Bonds by Section 4.4 hereof shall be applied
by the Company to prepay, together with accrued interest, all or a portion of
the unpaid principal of the Bonds. Such

                                       41
<PAGE>   47

prepayment shall be made by the Company taking, or causing the Issuer to take,
the actions required (a) for Payment of the Bonds, in the case of prepayment of
the Bonds in whole, or (b) to effect the prepayment of less than all of the
Bonds in inverse order of their maturities.

                                       42
<PAGE>   48

                                   ARTICLE XI
                                REBATE PROVISIONS

         SECTION 11.1      CREATION OF THE REBATE FUND.

         (a)      The Issuer hereby creates and establishes with the Trustee on
behalf of the Company a special trust fund in the name of the Issuer to be
designated by the Trustee and which is referred to herein as the Rebate Fund
(the "Rebate Fund"), which shall be held, invested, expended and accounted for
in accordance with this Loan Agreement and the Indenture.

         (b)      Moneys in the Rebate Fund shall be held in trust by the
Trustee and, subject to Section 7.4 hereof, shall be held for the benefit of the
United States as contemplated under the provisions of this Loan Agreement and
shall not be considered to be held for the benefit of the Issuer, the Company,
the Trustee or the owners of the Bonds.

         SECTION 11.2      DETERMINATIONS, NOTICES AND RECORDS OF REBATE AMOUNT.

         (a)      The Company shall determine the Rebate Amount or cause the
same to be determined in the manner provided in Section 148(i) of the Code and
the Regulations. The Company shall provide the Trustee and the Issuer with a
written copy of each such determination when made; this covenant shall survive
the defeasance of any Bonds pursuant to Article XIV of the Indenture. The
Company shall retain records of each such determination until a date six (6)
years after the retirement of the last Bond. The Company shall make such records
available for review by the Issuer and the Trustee upon reasonable notice.

         (b)      The Company shall make payments to the Trustee for deposit in
the Rebate Fund in such amounts and at such times as are required by the Code,
the Regulations and this Loan Agreement so that the Trustee will have sufficient
amounts in the Rebate Fund to pay the Rebate Amount to the United States when
required by the Code and the Regulations. In the event that the amount in the
Rebate Fund shall be insufficient to make the necessary payment to the United
States of the Rebate Amount when required by the Code and the Regulations, the
Company shall immediately pay to the Trustee for deposit into the Rebate Fund
such insufficiency. The Issuer and the Trustee have no responsibility for
calculating, receiving, holding or paying the Rebate Amount nor for compelling
the Company to calculate or pay the Rebate Amount.

         (c)      The Company shall furnish the Trustee with all information and
forms necessary to cause the Rebate Amount to be properly and timely paid to the
United States in accordance with the Code and the Regulations.

         SECTION 11.3      INVESTMENT EARNINGS ON BOND FUNDS. For the purpose of
determining the amount to be paid into the Rebate Fund hereunder, the Company
shall not take into account amounts earned on the investment of moneys in the
Bond Fund during a Bond Year (or earnings attributable to the reinvestment of
such amounts) if such earnings during the Bond

                                       43
<PAGE>   49

Year in question do not exceed One Hundred Thousand Dollars ($100,000). Pursuant
to Section 148-3(k) of the Regulations, an issue with an average annual debt
service that is not in excess of $2,500,000 may be treated as satisfying this
$100,000 limitation.

         SECTION 11.4      FILING OF REQUIRED REBATE. Each payment of the Rebate
Amount shall be filed by the Company with the Internal Revenue Service Center,
Ogden, Utah 84201 and shall be accompanied by (i) a copy of Form 8038-T, and
(ii) a statement summarizing the Company's determination of the amount of the
Rebate Amount so paid. The Company shall provide the Trustee, and to the Issuer
upon request, with copies of all documents and reports required by this Section
and filed with the Internal Revenue Service.

                                       44
<PAGE>   50

                                  ARTICLE XII
                                  MISCELLANEOUS

         SECTION 12.1      REFERENCES TO THE BONDS INEFFECTIVE AFTER BONDS PAID.
Upon Payment of the Bonds, all references in this Loan Agreement to the Bonds
shall be ineffective and the Issuer and any owner of the Bonds shall not
thereafter have any rights hereunder, excepting reporting and payment of rebate
payments under Sections 7.4, 11.2 and 11.4 hereof and rights of the Issuer to
indemnification and payment of expenses contained, without limitation, in
Sections 7.8, 7.9 and 7.10 hereof.

         SECTION 12.2      NO IMPLIED WAIVER. In the event any agreement
contained in this Loan Agreement should be breached by either party and
thereafter waived by the other party, such waiver shall be limited to the
particular breach so waived and shall not be deemed to waive any other breach
hereunder. Neither any failure nor any delay on the part of the Trustee to
exercise any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or
privilege preclude any other or further exercise thereof, or the exercise of any
other right, power or privilege.

         SECTION 12.3      ISSUER REPRESENTATIVE. Whenever under the provisions
of this Loan Agreement the approval of the Issuer is required or the Issuer is
required to take some action at the request of the Company, such approval may be
made or such action may be taken by the Issuer Representative or by the Issuer;
and the Company, the Trustee and the Bondholders shall be authorized to rely on
any such approval or action.

         SECTION 12.4      COMPANY REPRESENTATIVE. Whenever under the provisions
of this Loan Agreement the approval of the Company is required or the Company is
required to take some action upon the request of the Issuer, such approval shall
be made or such action shall be taken by the Company Representative; and the
Issuer, the Trustee and the Bondholders shall be authorized to act on any such
approval or action.

         SECTION 12.5      NOTICES.

         (a)      All notices, certificates or other communications hereunder
shall be sufficiently given and shall be deemed given when delivered by hand
delivery, sent via overnight courier service or mailed by first class, postage
prepaid, registered or certified mail, addressed as follows:

                  (1)      if to the Issuer, to Fort Bend County Industrial
         Development Corporation, c/o Greater Fort Bend Economic Development
         Council, One Fluor Daniel Drive, Sugar Land, Texas 77478;

                  (2)      if to the Department, to Texas Department of Economic
         Development, 1700 N. Congress, P. O. Box 12728, Austin, Texas 78711,
         Attention: Finance Section IRB Program;

                                       45
<PAGE>   51

                  (3)      if to the Company, to Aaron Rents, Inc., 309 E. Paces
         Ferry Road, N.E., Atlanta, Georgia 30305, Attention: Gilbert L.
         Danielson;

                  (4)      if to the Trustee, to First Union National Bank, 5847
         San Felipe, Suite 1050, Houston, Texas 77057, Attention: Corporate
         Trust Department; or

                  (5)      if to any successor Trustee or Co-Trustee, addressed
         to it at its principal corporate trust office (Attention: Corporate
         Trust Department).

         (b)      The Issuer, the Company or the Trustee may, by notice given
hereunder, designate from time to time any further or different addresses to
which subsequent notices, certificates or other communications shall be sent.

         SECTION 12.6      IF PAYMENT OR PERFORMANCE DATE IS OTHER THAN A
BUSINESS DAY. If the specified or last date for the making of any payment, the
performance of any act or the exercising of any right, as provided in this Loan
Agreement, shall be a day other than a Business Day, such payment may be made or
act performed or right exercised on the next succeeding Business Day; provided
that interest shall accrue during any such period during which payment shall not
occur.

         SECTION 12.7      BINDING EFFECT. This Loan Agreement shall inure to
the benefit of and shall be binding upon the Issuer, the Company and their
respective successors and assigns, subject to the provisions of Sections 7.12,
8.1 and 8.3 hereof.

         SECTION 12.8      SEVERABILITY. In the event any provision of this Loan
Agreement shall be held invalid or unenforceable by any court of competent
jurisdiction, such holding shall not invalidate or render unenforceable any
other provision hereof or thereof.

         SECTION 12.9      AMENDMENTS, CHANGES AND MODIFICATIONS. Subsequent to
the issuance of the Bonds and prior to Payment of the Bonds, this Loan Agreement
and the Indenture may not be effectively amended, changed, modified, altered or
terminated except in accordance with the Indenture.

         SECTION 12.10     EXECUTION IN COUNTERPARTS. This Loan Agreement may be
executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument, and no one counterpart
of which need be executed by all parties.

         SECTION 12.11     APPLICABLE LAW. This Loan Agreement shall be governed
by and construed in accordance with the laws of the State.

         SECTION 12.12     EXPENSES. The Company agrees to pay all reasonable
fees and expenses incurred in connection with the preparation, execution,
delivery, modification, waiver, and amendment of this Loan Agreement, the other
Bond Documents and related documents, and the fees and expenses of Bond Counsel,
Counsel for the Issuer and Counsel for the Trustee. The Company also agrees to
pay to the Trustee, as and when the same become due, an aggregate of $2,750.00
each year for services rendered and its expenses incurred as Trustee,

                                       46
<PAGE>   52

including the reasonable fees of its counsel, and such other amounts as the
Company herein assumes or agrees to pay, including any costs or expenses
necessary to cancel and discharge the Indenture. The Company also agrees to pay
all expenses incurred by the Trustee or the Issuer in collection of any
indebtedness incurred hereunder in the event of default by the Company,
including reasonable and actual attorneys fees, provided that the amount of any
legal fees so incurred shall be without regard to any statutory presumption.

         SECTION 12.13     AMOUNTS REMAINING WITH THE TRUSTEE. Any amounts
remaining in the Bond Fund, the Project Fund or otherwise in trust with the
Trustee under the Indenture or this Loan Agreement shall, after Payment of the
Bonds and all Administrative Expenses in accordance with this Loan Agreement, be
disbursed by the Trustee in accordance with the provisions of the Indenture or
otherwise as may be required by law.

         SECTION 12.14     REFERENCES TO THE CREDIT FACILITY ISSUER AND CREDIT
FACILITY. If the Credit Facility is not in effect at any time, all references
herein to the Credit Facility Issuer, the Credit Facility and the Trustee shall
be deemed ineffective during such time.

         SECTION 12.15     COVENANTS OF ISSUER NOT COVENANTS OF OFFICIALS
INDIVIDUALLY. All covenants, stipulations, obligations and agreements of the
Issuer contained in this Indenture shall be deemed to be covenants,
stipulations, obligations and agreements of the Issuer to the full extent
permitted by the Constitution and laws of the State. No covenant, stipulation,
obligation or agreement contained herein shall be deemed to be a covenant,
stipulation, obligation or agreement of any present or future officer, member,
agent or employee of the Issuer in his individual capacity, and no officer of
the Issuer executing the Bonds shall be liable personally on the Bonds or be
subject to any personal liability or accountability by reason of the issuance
thereof. No officer, agent or employee of the Issuer shall incur any personal
liability in acting or proceeding or in not acting or not proceeding in
accordance with the terms of this Indenture.

         SECTION 12.16     NO PERSONAL LIABILITY. No recourse shall be had for
the enforcement of any obligation, promise or agreement of the Issuer contained
herein or in the Bonds or other documents to which the Issuer is a party or for
any claim based hereon or thereon or otherwise in respect hereof or thereof
against any director, member, officer, agent, attorney or employee, as such, in
his/her individual capacity, past, present or future, of the Issuer or of any
successor entity, either directly or through the Issuer or any successor entity,
under or by reason of any of the obligations, promises or agreements entered
into in the Bonds or between the Issuer and the Trustee, whether herein
contained or to be implied herefrom as being supplemental hereto; and all
personal liability of that character against every such director, member,
officer, agent, attorney and employee is, by the execution of this Indenture and
as a condition of, and as part of the consideration for, the execution of this
Indenture, expressly waived and released.

           The Bonds shall be limited obligations of the Issuer. The Bonds and
the interest thereon and redemption premium, if any, shall not be deemed to
constitute or create an indebtedness, liability or obligation of the Issuer, the
State or any political subdivision or

                                       47
<PAGE>   53

agency thereof within the meaning of any State constitutional provision or
statutory limitation or a pledge of the faith the credit or the taxing power of
the State or any such political subdivision or agency. The Bonds and the
interest thereon are payable solely from and secured by the Trust Estate,
including the moneys available to be drawn by the Trustee under the Letter of
Credit that may be in effect from time to time to support payments due on or
with respect to the Bonds, all as described in and subject to limitations set
forth in this Indenture, for the equal and ratable benefit of the Holders, from
time to time, of the Bonds. Nothing in the Bonds or in the Indenture or the
proceedings of the Issuer to create a debt of the Issuer, the State, or any
political subdivision thereof within the meaning of any constitutional or
statutory provision of the State. No member, director or officer, agent,
attorney or employee of the Issuer, including any person executing the Indenture
or the Bonds, shall be liable personally on the Bonds or subject to any personal
liability for any reason relating to the issuance of the Bonds. The Bonds and
interest due thereon shall not be a general obligation, debt or liability of the
Issuer and do not constitute or give rise to any pecuniary liability or charge
against the general credit of the Issuer.

         No recourse shall be had for the enforcement of any obligation, promise
or agreement of the Issuer contained herein or in the Bonds or the other
documents to which the Issuer is a party or for any claim based hereon or
thereon or otherwise in respect hereof or thereof against any director, member,
officer, agent, attorney or employee, as such, in his/her individual capacity,
past, present or future, of the Issuer or of any successor entity, either
directly or through the Issuer or any successor entity whether by virtue of any
constitutional provision, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise. No personal liability whatsoever shall
attach to, or be incurred by, any member, officer, agent, attorney or employee
as such, past, present or future, of the Issuer or of any successor entity,
either directly or through the Issuer or any successor entity, under or by
reason of any of the obligations, promises or agreements entered into in the
Bonds or between the Issuer and the Trustee, whether herein contained or to be
implied herefrom as being supplemental hereto; and all personal liability of
that character against every such direct, member, officer, agent, attorney and
employee is, by the extension of this Indenture and as a condition of, and as
part of the consideration for, the execution of this Indenture, expressly waived
and released.

         SECTION 12.17     LIMITED LIABILITY OF THE ISSUER. Notwithstanding
anything to the contrary, any liability for payment of money and any other
liability or obligation which the Issuer may incur under the Bonds, this
Indenture, the Loan Agreement or the Placement Agreement shall not constitute a
general obligation of the Issuer but shall constitute limited obligations of the
Issuer payable solely from and enforced only against the Trust Estate. No
recourse shall be had for the enforcement of any obligation, promise or
agreement of the Issuer contained herein or in the Bonds or the Loan Agreement
to which the Issuer is a party or for any claim based hereon or thereon or
otherwise in respect hereof or thereof against any director, member, officer,
agent, attorney or employee, as such, in his individual capacity, past, present
or future, of the Issuer or of any successor entity, either directly or through
the Issuer or any successor entity whether by virtue of any constitutional
provision, statute or rule of law, or by the enforcement of any assessment or
penalty otherwise. No personal liability whatsoever shall attach to, or be
incurred by, any director, member, officer, agent, attorney or

                                       48
<PAGE>   54

employee as such, past, present or future, of the Issuer or of any successor
entity, either directly or through the Issuer or any successor entity, under or
by reason of any of the obligations, promises or agreements entered into in the
Bonds or between the Issuer and the Trustee, whether herein contained or to be
implied herefrom as being supplemental hereto; and to all personal liability of
that character against every such director, member, officer, agent, attorney and
employee is by the execution of this Indenture and as a condition of, and as
part of the consideration for, the execution of this Indenture, expressly waived
and released.

                                       49
<PAGE>   55

         IN WITNESS WHEREOF, the Issuer and the Company have caused this Loan
Agreement to be executed in their respective legal names by their duly
authorized representatives as of the date first above written.

                                          Fort Bend County Industrial
                                          Development Corporation

                                          By:
                                             -----------------------------------
                                             Chairman

Attest:
       -----------------------------
              Secretary

                                          Aaron Rents, Inc.

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

Attest:
       -----------------------------
              Secretary

                                       50

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]