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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): February 21, 2006
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AARON RENTS, INC.
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(Exact name of Registrant as Specified in its Charter)
Georgia 1-13941 58-0687630
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(State or other Jurisdiction of (Commission File (IRS Employer
Incorporation or Organization) Number) Identification No.)
309 E. Paces Ferry Road, N.E.
Atlanta, Georgia 30305-2377
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (404) 231-0011
Not Applicable
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(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 (see General Instruction A.2. below):
[ ] 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 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
INCENTIVE BONUSES
At a meeting on February 21, 2006, the Board of Directors of Aaron Rents,
Inc. (the "Company") approved plan rules under the Company's Executive Bonus
Plan for its 2006 fiscal year for the following executive officers of the
Company (the "named executive officers"): R. Charles Loudermilk, Sr., Chairman
and Chief Executive Officer; Robert C. Loudermilk, Jr., President and Chief
Operating Officer; Gilbert L. Danielson, Executive Vice President and Chief
Financial Officer; W. Kenneth Butler, President, Aaron's Sales & Lease Ownership
Division; and K. Todd Evans, Vice President, Franchising, Aaron's Sales & Lease
Ownership Division.
As with bonuses in prior years, the 2006 plan rules provide for the payment
to the named executive officers of cash incentives equal to specified
percentages of the pre-tax earnings of the Company for its 2006 fiscal year,
provided that 2006 pre-tax earnings exceed those of 2005, except in the cases of
Mr. Butler, whose bonus depends on the cash basis pre-tax earnings of the
Aaron's Sales & Lease Ownership Division, and of Mr. Evans, whose bonus depends
on achievement of quarterly pre-tax profit objectives for the Aaron's Sales &
Lease Ownership Division's franchise operations and on new franchise store
openings. The maximum percentage of pre-tax earnings that may be awarded is 1%,
for Mr. Loudermilk, Sr. Until further notice, the Board intends to continue this
incentive plan in subsequent fiscal years.
Also at the meeting, the Board approved the payment of bonuses earned for
the Company's 2005 fiscal year by the named executive officers in accordance
with previously announced plan rules.
SALARIES
At its February 21 meeting, the Board also approved salary raises of
$25,000 for each of Messrs. Loudermilk, Jr., Danielson and Butler, and $10,000
for Mr. Evans, bringing their annual salaries to the following amounts: Messrs.
Loudermilk, Jr. and Danielson--$375,000 each; Mr. Butler--$450,000; and Mr.
Evans--$190,000.
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SIGNATURES
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.
AARON RENTS, INC.
By: /s/ Gilbert L. Danielson
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Gilbert L. Danielson
Executive Vice President,
Date: February 27, 2006 Chief Financial Officer
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