2K Sports 2009 Annual Report Download - page 29

applicable strike price of the warrants. In addition, the counterparties to the hedge and warrant
transactions, and/or their respective affiliates, may modify their hedge positions by entering into or
unwinding various derivatives with respect to our common stock and/or purchasing or selling our common
stock in secondary market transactions at any time prior to the maturity of the notes (and are likely to do
so during any observation period related to a conversion of notes). This activity could also cause or avoid
an increase or a decrease in the market price of our common stock or the notes.
Delaware law, our charter documents and provisions of our debt agreements may impede or discourage a takeover,
which could cause the market price of our shares to decline.
We are a Delaware corporation, and the anti-takeover provisions of Delaware law impose various
impediments to the ability of a third party to acquire control of us, even if a change in control would be
beneficial to our existing stockholders. Our Board has the power, without stockholder approval, to adopt a
stockholder rights plan and/or to designate the terms of one or more series of preferred stock and issue
shares of preferred stock. In addition, we may under certain circumstances involving a change of control,
be obligated to repurchase all or a portion of our convertible senior notes and any potential acquirer would
be required to assume our obligations related to any outstanding notes. We or any possible acquirer may
not have available financial resources necessary to repurchase those notes. The ability of our Board to
create and issue a new series of preferred stock and certain provisions of Delaware law, our certificate of
incorporation and bylaws and the indenture governing our notes could impede a merger, takeover or other
business combination involving us or discourage a potential acquirer from making a tender offer for our
common stock, which, under certain circumstances, could reduce the market price of our common stock
and the value of any outstanding notes.
Item 1B. Unresolved Staff Comments
None
Item 2. Properties
Our principal executive offices are located at 622 Broadway, New York, New York in approximately 48,000
square feet of space under a lease expiring in 2012 for an annual rent of approximately $1.9 million. We
also sublease an additional 16,000 square feet at this location under a lease expiring in fiscal 2010 for an
annual rent of approximately $0.2 million.
Take-Two Interactive Software Europe, our wholly-owned subsidiary, leases 12,500 square feet of office
space in Windsor, United Kingdom for an annual rent of approximately $0.6 million plus taxes and utilities,
which expires in 2011. Rockstar North, our wholly-owned subsidiary, leases 42,000 square feet of office
space in Edinburgh, Scotland, for an annual rent of approximately $3.2 million. That lease expires in 2014.
2K corporate offices and two development studios occupy approximately 61,000 square feet of leased
office space in Novato, California. The lease provides for an annual rent of approximately $2.0 million and
expires in 2013.
In addition, our other subsidiaries lease office space in Sydney and Canberra, Australia; Vienna, Austria;
Mississauga, Toronto and Vancouver, Canada; Brno and Prague, Czech Republic; Paris, France; Munich,
Germany; Breda, Netherlands; Madrid, Spain; Milan, Italy; Auckland, New Zealand; Geneva, Switzerland;
London, Lincoln, and Leeds, United Kingdom; Newton, Singapore; Shanghai, China; and in the United
States Camarillo, San Diego, and Northridge, California; Hunt Valley, Maryland; Andover and Quincy,
Massachusetts; Cincinnati, Ohio; Austin, Texas and Bellevue, Washington; for an aggregate annual rent of
approximately $8.3 million.
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