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Exhibit 10(pp)
FORM OF AMENDMENT TO OPTION AWARD AGREEMENT
UNDER
THE AARON RENTS, INC. STOCK OPTION AND INCENTIVE AWARD PLAN.
December 20, 2006
[Grantee Name]
PERSONAL AND CONFIDENTIAL
Dear [Grantee]:
Aaron Rents, Inc. (the "Company") previously granted you options
to
purchase common stock of the Company under the Aaron Rents, Inc.
Stock Option
and Incentive Award Plan (the "Plan"), which have an exercise price
that is less
than the fair market value of a share of stock on the grant date
(the
"Options"). Under recent tax law changes, these discount Options
could subject
you to an additional 20% income tax unless the Options are amended
to comply
with Section 409A of the Internal Revenue Code of 1986, as amended
("Section
409A").
The
Compensation Committee of the Company has determined it is best
to
amend these Options to provide that the exercise price shall be
increased to
equal the fair market value per share on the grant date, adjusted,
if
applicable, to reflect the Company's 3 for 2 stock split that
occurred August 2,
2004. In addition, to compensate you for the increase in the
exercise price of
the Options, the Company will pay you the original total discount
amount in cash
on the Vesting Date (as listed below) if you remain employed until
the Vesting
Date or if you die or terminate employment due to Retirement (as
defined in the
Plan) prior to the Vesting Date. If you terminate employment prior
to the
Vesting Date for any reason other than death or Retirement, you
will have no
right to receive the cash discount amount.
The
table below lists for each Optio
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