avisbudgetgroup.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
_________________
FORM
8-K
_________________
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of
Report (Date of Earliest Event Reported): July 13, 2007 (July 13,
2007)
_________________
Avis
Budget Group, Inc.
(Exact
Name of Registrant as Specified in its Charter)
_________________
|
Delaware
|
1-10308
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06-0918165
|
|
(State
or Other Jurisdiction of Incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
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6
Sylvan Way
Parsippany,
NJ
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07054
|
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(Address
of Principal Executive Offices)
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(Zip
Code)
|
(973)
496-4700
(Registrant's
telephone number, including area code)
N/A
(Former
name or former address if changed since last report)
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:
[
]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[
]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
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Item
5.02.
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|
Departure
of Directors or Certain Officers; Election of Directors; Appointment
of
Certain Officers;
Compensatory
Arrangements of Certain
Officers.
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Effective
July 13, 2007, John T. McClain, Senior Vice President and named executive
officer, resigned his position with the Company. As we previously reported
in a current report on Form 8-K, Mr. McClain was succeeded by Brett D. Weinblatt
as Chief Accounting Officer on June 15, 2007, and was expected to leave the
Company before the end of 2007.
In
connection with Mr. McClain’s resignation, he is expected to receive a
lump-sum severance payment in cash of approximately $946,000 comprised of:
(a)
two times current base salary plus the pro-rated portion of the annual target
incentive award, (b) the ratable portion of Mr. McClain’s 2006 stock-based
award, which would have been expensed in accordance with its original vesting
schedule by the first anniversary of Mr. McClain’s termination of
employment (approximately $181,000) and (c) the ratable portion of Mr.
McClain’s 2007 stock-based award, which would have been expensed in accordance
with its original vesting schedule by the date of Mr. McClain’s termination
of employment (approximately $34,000). From and after the date of
Mr. McClain’s termination of employment, we will provide Mr. McClain
and his family continued coverage under our group health plans for a period
of
up to 12 months at the employee contribution rate. Mr. McClain will also receive
post-termination exercisability of stock options for three years.
The
amount of severance was agreed in
connection with the separation of Cendant Corporation in 2006 and is expected
to
be funded by Realogy Corporation and Wyndham Worldwide Corporation consistent
with certain other contingent liabilities and corporate liabilities of Avis
Budget Group, which were incurred prior to the date of the Cendant separation
and are not primarily related to any of the respective businesses of Realogy,
Wyndham Worldwide, Travelport and/or our vehicle rental
operations. In connection with Mr. McClain’s receipt of the above
severance payment and other termination benefits, Mr. McClain will execute
an
agreement and general release in a form acceptable to us.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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AVIS
BUDGET GROUP, INC.
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By:
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/s/
Jean M. Sera
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| |
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Jean
M. Sera
Senior
Vice President and Secretary
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Date:
July 13, 2007