Dollar Rent A Car 2011 Annual Report Download - page 26

Our system back-up plans, continuity plans and insurance programs are designed to mitigate such a risk, but not to eliminate it.
Our systems contain personal information about our customers. Our failure to maintain the security of the data we hold, whether the result of our
own error or that of others, could harm our reputation or give rise to legal liabilities, resulting in a material adverse effect on our results of operations or cash
flows.
ITEM 1B. UNRESOLVED STAFF COMMENTS
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None.
ITEM 2. PROPERTIES
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The Company owns its headquarters located at 5330 East 31st Street, Tulsa, Oklahoma. This location is a three building office complex that houses the
headquarters for Dollar and Thrifty. These buildings and the related improvements were pledged as collateral under the Senior Secured Credit Facilities.
In connection with the Senior Secured Credit Facilities, the Company also executed liens encumbering its real property located in Tampa, Las Vegas, Ft.
Lauderdale, Irving, Houston, Salt Lake City, San Diego, Chicago, Memphis, Tulsa, Fort Myers, Florida and Harlingen, Texas. Those liens were terminated
upon the termination of the Senior Secured Credit Facilities, and the Company has agreed in the New Revolving Credit Facility to pledge each of them (subject
to certain conditions) as part of the collateral securing the New Revolving Credit Facility.
The Company owns or leases real property used for company-owned stores and office facilities, and in some cases owns real property that is leased to
franchisees or other third-parties. As of December 31, 2011, the Company’s company-owned operations were carried on at 280 locations in the U.S. and
Canada, the majority of which are leased. Dollar and Thrifty each operate company-owned stores under concession agreements with various governmental
authorities charged with the operation of airports. Concession agreements for airport locations, which are usually competitively bid, are important for securing
air traveler business. These concession agreements typically provide that the airport will receive a specified percentage of vehicle rental revenue or a guaranteed
minimum concession fee, whichever is greater. Additionally, certain concession agreements require the payment or reimbursement of operating expenses.
ITEM 3. LEGAL PROCEEDINGS
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On November 14, 2007, a purported class action was filed against the Company, by Michael Shames and Gary Gramkow, individually and on behalf of all
others similarly situated, in the Southern District Court of California, claiming that the pass through of the California Trade and Tourism Commission and
airport concession fee authorized by legislation effective in January 2007 constitute antitrust violations of the Sherman Act and the California Unfair
Competition Act. The case is styled 

(No. 07 CV 2174 H BLM
(S.D. Cal.)). The defendants filed a motion to dismiss the amended complaint, and on July 25, 2008, the Court issued an order denying the motion as to the
antitrust claims but granting the motion to dismiss state law claims. On November 21, 2011, the court ordered a stay of proceedings, this time until
December 21, 2011, and on December 21, 2011 the court extended the stay on all proceedings until February 8, 2012. Mediation was held in December 2011
and again in January 2012 at which time the parties agreed to a preliminary settlement. The Company has accrued a contingency related to the preliminary
settlement.
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