Item 8.01 Other Events.

The Company disclosed in an 8-K filing on November 20,2008, the Company's execution of new three year employment agreements with its Named Executive Officers on November 14, 2008. At the same time, the Company executed employment agreements with approximately 10 additional senior executives. In all cases, the new employment agreements became effective January 1, 2009 and generally replaced employment agreements that expired December 31, 2008. Pursuant to these agreements, the senior executives received awards of nonvested shares of the Company's common stock pursuant to the Company's Amended and Restated Portfolio Recovery Associates 2002 Stock Option Plan and 2004 Restricted Stock Plan (the "Amended Plan"), all of which vested on January 1, 2009. As a result of the vesting of these shares, the Company recorded stock-based compensation expense in connection with these shares, in the amount of approximately $1.4 million during the first quarter of 2009. Stock-based compensation expense consists of expenses recorded under SFAS 123(R), "Share-Based Payment," in connection with stock awards such as the stock awards granted under the Amended Plan.

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