Avis 2006 Annual Report Download - page 29

Table of Contents
Delaware law also imposes some restrictions on mergers and other business combinations between us and any holder of 15% or more of our
outstanding common stock.
In 2006, prior to the Cendant Separation, our Board adopted a stockholder rights plan which provides, among other things, that when specified
events occur, our stockholders will be entitled to purchase from us a newly created series of junior preferred stock. The preferred stock
purchase rights are triggered by the earlier to occur of (i) ten business days (or a later date determined by our Board of Directors before the
rights are separated from our common stock) after the public announcement that a person or group has become an “acquiring person” by
acquiring beneficial ownership of 15% or more of our outstanding common stock or (ii) ten business days (or a later date determined by our
Board before the rights are separated from our common stock) after a person or group begins a tender or exchange offer that, if completed,
would result in that person or group becoming an acquiring person. The issuance of preferred stock pursuant to the stockholder rights plan
would cause substantial dilution to a person or group that attempts to acquire us on terms not approved by our Board of Directors.
We believe these provisions protect our stockholders from coercive or otherwise unfair takeover tactics by requiring potential acquirors to
negotiate with our Board and by providing our Board with more time to assess any acquisition proposal. These provisions are not intended to
make our company immune from takeovers. However, these provisions apply even if the offer may be considered beneficial by some
stockholders and could delay or prevent an acquisition that our Board determines is not in the best interests of our company and our
stockholders.
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 2. PROPERTIES
Our principal executive offices are located at leased offices at 6 Sylvan Way, Parsippany, New Jersey 07054 pursuant to a lease expiring in
2023. Additional corporate functions are also conducted at leased offices at 10 Sylvan Way and One Campus Drive in Parsippany, New Jersey
pursuant to leases expiring in 2011 and 2007, respectively. We also own a facility in Virginia Beach, Virginia, which serves as a satellite
administrative facility for our car rental operations. Office space is also leased in Orlando, Florida; Englewood, Colorado; Wichita Falls, Texas;
Tulsa, Oklahoma; and Fredericton, Canada pursuant to leases expiring in 2007, 2010, 2010, 2010, and 2011, respectively. These locations
primarily provide operational services for both brands, including call center operations. The Budget office at Redding, California was closed in
2005 and is currently vacant and is subject to a lease expiring in 2011. In addition, there are approximately 20 other leased office locations in
the United States for administrative activities, regional sales and operations activities.
We lease or have vehicle rental concessions for both the Avis and Budget brands at locations throughout the world. Avis operates
approximately 750 locations in the United States and approximately 310 locations outside the United States. Of those locations, approximately
230 in the United States and approximately 120 outside the United States are at airports. Budget operates at approximately 590 locations in the
United States of which approximately 140 are at airports. Budget also operates at approximately 180 locations outside the United States of
which approximately 60 are at airports. Typically, an airport receives a percentage of vehicle rental revenue, with a guaranteed minimum.
Because there is a limit to the number of vehicle rental locations in an airport, vehicle rental companies frequently bid for the available
locations, usually on the basis of the size of the guaranteed minimums.
We believe that our properties are sufficient to meet our present needs and we do not anticipate any difficulty in securing additional space, as
needed, on acceptable terms.
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the right of our Board to issue preferred stock without stockholder approval; and
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limitations on the right of stockholders to remove directors.