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UNITED RENTALS, INC. 8-K Report, Material Agreement (Jun 29, 2007)

Reports
Material Agreements·Exhibits & Filings
Filing Date
Filed June 29, 2007
Period End
June 26, 2007
Security
URI
In the record · 2016–202610-K1110-Q328-K170

URI filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 170 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Oct ’17Oct ’17
  2. Leadership change8-K · May ’19May ’19
  3. Material agreement8-K · Aug ’21Aug ’21
  4. Material agreement8-K · Aug ’25Aug ’25

01—Abstract

Summary

Summary of the 8-K filed June 29, 2007. Cited figures are marked; the original filing is the authoritative source.

United Rentals, Inc. (URI) filed an 8-K on June 29, 2007, to report a material definitive agreement.

The company's compensation committee approved an amendment to the existing Service Agreement with Chairman Bradley S. Jacobs. This amendment addresses changes in the company's cost structure, specifically its decision to sell all company aircraft fractional ownership interests.

The primary impact for investors is the modification of Mr. Jacobs' benefits related to company aircraft usage. The amendment significantly alters the terms concerning aircraft usage for Mr. Jacobs. His entitlement to personal use of company aircraft, both during and after his term of service, has been eliminated.

In exchange for this concession and an extended non-compete period from 12 to 18 months, the company will pay Mr. Jacobs a total of $6.1 milliona, which includes a tax gross-up. The company anticipates this will result in a 2007 charge of approximately three cents per diluted share.

02—Key points

Key Highlights

  1. Amendment to Service Agreement with Chairman Bradley S. Jacobs approved on June 26, 2007.
  2. Company is selling all aircraft fractional ownership interests as part of a cost structure review.
  3. Mr. Jacobs' entitlement to personal use of company aircraft is eliminated, both during and after the term of the agreement.
  4. Mr. Jacobs' non-compete period is extended from 12 months to 18 months following the end of the term.
  5. United Rentals will pay Mr. Jacobs $6.1 million in consideration for these changes, including tax gross-up.
  6. A 2007 charge of approximately three cents per diluted share is expected due to this agreement.
  7. The term of the Service Agreement will now end on the earlier of December 15, 2007, or a change in control of the company.

03—Questions

Frequently Asked Questions

  1. What is the main purpose of this 8-K filing?

    This 8-K filing announces a material amendment to the Service Agreement between United Rentals, Inc. and its Chairman, Bradley S. Jacobs. This amendment is primarily driven by the company's decision to sell its aircraft fractional ownership interests and modifies Mr. Jacobs' benefits related to aircraft usage and his non-compete agreement.

  2. How does this amendment affect Mr. Jacobs' use of company aircraft?

    The amendment completely eliminates Mr. Jacobs' right to the personal use of company aircraft, both during the term of the agreement and following its conclusion. This is a significant change from the previous agreement which allowed for such usage.

  3. What is the financial impact of this amendment on United Rentals?

    United Rentals expects to record a charge of approximately three cents per diluted share in 2007 as a result of this amendment. This charge is related to the $6.1 million payment made to Mr. Jacobs as consideration for the changes, including the elimination of aircraft usage rights and the extension of his non-compete period.

  4. What is the new end date for the Service Agreement?

    The term of the Service Agreement will now end on the earlier of December 15, 2007, or the occurrence of a change in control of the Company.

04—Continue

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