8-KLeadership Changes

COPART INC 8-K Report, Executive Changes (Mar 14, 2011)

Filed March 14, 2011For Securities:CPRT

Summary

This Form 8-K filing by Copart, Inc. (CPRT) on March 14, 2011, primarily reports the resignation of David Bauer, Senior Vice President of Corporate Development, effective March 9, 2011. Mr. Bauer had a long tenure with the company, starting in 1995 and previously serving as Senior Vice President of Management Information Systems. The filing details a severance agreement entered into with Mr. Bauer, which includes accelerated vesting of certain unvested stock options. Investors should note the specifics of the accelerated stock options, totaling 55,788 shares across two grants, with exercise prices of $34.39 and $32.86. All of Mr. Bauer's stock options are now fully vested and will expire by June 9, 2011, if not exercised. The severance agreement also includes a release of claims by Mr. Bauer against Copart, contingent on a revocation period.

Key Highlights

  • 1Resignation of Senior Vice President of Corporate Development, David Bauer, effective March 9, 2011.
  • 2Mr. Bauer had been with Copart since 1995, holding a prior role as SVP of Management Information Systems.
  • 3Copart entered into a severance agreement and release of claims with Mr. Bauer.
  • 4Acceleration of vesting for 55,788 unvested stock options held by Mr. Bauer.
  • 5Accelerated options have exercise prices of $34.39 and $32.86.
  • 6All of Mr. Bauer's stock options are now fully vested and have an expiration date of no later than June 9, 2011.
  • 7Severance agreement includes a release of claims by Mr. Bauer against the company and its affiliates.

Frequently Asked Questions

The main reason for this filing is to report the resignation of David Bauer, Copart's Senior Vice President of Corporate Development, and to disclose the terms of his severance agreement, which includes the acceleration of his stock options.

A total of 55,788 unvested stock options held by David Bauer were accelerated. These options are from grants made on September 28, 2007, and September 25, 2009.

All of Mr. Bauer's stock options, including those that were accelerated, are now fully vested and will expire no later than June 9, 2011, if they are not exercised before that date.

The release of claims means that Mr. Bauer has agreed not to pursue any legal claims against Copart, its officers, directors, employees, agents, or affiliates related to his employment or its termination. This is a standard component of many severance agreements to protect the company from future litigation.