United Rentals 8-K 2007
SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO SECTION 13 OR 15(d) OF THE
Date of Report (Date of earliest event reported): June 4, 2007
UNITED RENTALS, INC.
Registrants telephone number, including area code (203) 622-3131
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
On June 4, 2007, United Rentals, Inc. (the Company) entered into its customary form of indemnification agreement with each of the two most recently-appointed members of its Board of Directors: Lawrence Keith Wimbush and Jenne K. Britell. Mr. Wimbush and Dr. Britell were the only directors of the Company who had not previously executed such an agreement with the Company. Each indemnification agreement provides, among other things, for the Company to defend, indemnify and hold harmless the indemnitee against costs and liabilities incurred in connection with any claims, actions or proceedings to which the indemnitee is or may be made a party by reason of the fact that such person is or was a director of, or otherwise providing services to, the Company, as well as to advance certain expenses incurred by the indemnitee in the investigation or defense of any such proceedings. The foregoing summary is qualified in its entirety by reference to the full text of the form of indemnification agreement, which is attached hereto as Exhibit 10.1 and incorporated by reference herein.
As previously disclosed, Wayland R. Hicks elected to retire as Chief Executive Officer of the Company. Mr. Hickss retirement became effective immediately following the conclusion of the Companys 2007 annual meeting of stockholders (the 2007 Annual Meeting), which was held on June 4, 2007. Mr. Hicks shall continue to serve as the Vice Chairman of the Companys Board of Directors, in accordance with the Companys By-laws.
Also as previously disclosed, effective upon the effectiveness of Mr. Hickss retirement, Michael J. Kneeland assumed the role of interim Chief Executive Officer. Mr. Kneeland, age 53, has served as the Companys Executive Vice President and Chief Operating Officer since March 2007, and prior to that served as the Companys Executive Vice President Operations since September 2003. Mr. Kneeland joined the Company as district manager in 1998 and was subsequently named Vice President Aerial Operations, and then Vice President Southeast Region. Mr. Kneeland has more than 25 years of experience in the equipment rental industry.
On June 7, 2007, in recognition of Mr. Hickss past service to the Company and as partial compensation for the 200,002 unvested restricted stock units (RSUs) Mr. Hicks forfeited as a result of his retirement (133,334 of which had time-based vesting and 66,668 of which had performance-based vesting), the Company granted Mr. Hicks a new equity award providing for 133,334 RSUs. These new RSUs vest only in the event that a change in control of the Company occurs on or before December 31, 2007.
Also on June 7, 2007, the Company amended the terms of its previously-disclosed retention bonus arrangement with Roger E. Schwed, its Executive Vice President and General Counsel. The amendment increases the retention bonus amount to $325,000 and provides that the bonus will be earned in full if and when there is a change in control of the Company. One-half of the bonus will be paid at
the time of such change in control and one-half will be paid six-months thereafter.
On June 7, 2007, the Company filed with the State of Delaware a Certificate of Amendment to its Amended and Restated Certificate of Incorporation to eliminate the classification of its Board of Directors and thereby provide for the annual election by stockholders of each member of the Board (the Charter Amendment). The Charter Amendment was approved by the Companys stockholders at the 2007 Annual Meeting, after having been approved by the Board of Directors on April 4, 2007. Prior to the Charter Amendment becoming effective, the Board of Directors was divided into three classes, with each class being elected every three years. Under the Charter Amendment, directors will be elected to one-year terms beginning with the Companys 2008 annual meeting (with the terms of the Class 1 and Class 2 directors elected at the Companys 2006 annual meeting expiring at the 2008 and 2009 annual meetings, respectively, and the terms of the Class 3 directors elected at the 2007 Annual Meeting expiring at the 2010 annual meeting). The amendment also deletes, with respect to all directors other than those directors elected prior to the Companys 2008 annual meeting for a term that extends beyond such meeting, the requirement that provided, in accordance with the provisions of Delaware law applicable to classified boards of directors, that directors may be removed only for cause.
The Charter Amendment is effective as of June 7, 2007. The Certificate of Amendment filed with the State of Delaware to implement the Charter Amendment is attached hereto as Exhibit 3.1.
The Companys 2007 Annual Meeting was held on June 4, 2007. The following directors were elected by holders of shares of our common stock and our Class D-1 Perpetual Convertible Preferred Stock, as follows:
The directors were elected for a three-year term expiring in 2010.
In addition, the following directors were elected by holders of shares of our Series C Perpetual Convertible Preferred Stock for a one-year term expiring in 2008, as follows:
The directors who were not up for election at the 2007 annual meeting of stockholders continue to serve as our Class 1 and Class 2 directors for terms expiring in 2009 and 2010, respectively.
The other proposals voted upon at the 2007 Annual Meeting, and the results of those votes, are as follows:
Accordingly, both of the above proposals were approved. There were no additional matters voted upon at the 2007 Annual Meeting.
Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 8th day of June, 2007.