American Home Shield 2007 Annual Report Download - page 134

deemed to beneficially own an additional 3,274,900 shares of Common Stock owned by certain managed accounts (the "Managed
Accounts") by virtue of their power to vote and dispose of such shares pursuant to account management agreements to which NCM
is a party. The shares of Common Stock owned by Newcastle and the Managed Accounts were purchased and/or are held in margin
accounts.
Through this Notice, Newcastle hereby (i) nominates Mark E. Schwarz, James A. Risher, Dale A. Booth and Michael T.
Leatherman as nominees (the "Nominees") to be elected to the ServiceMaster Board at the Annual Meeting, and (ii) submits a
business proposal to adopt a stockholder resolution recommending to the ServiceMaster Board that ServiceMaster reimburse
Newcastle for all expenses it incurs in connection with the proxy solicitation to elect the Nominees at the Annual Meeting,
including, but not limited to, all litigation expenses resulting therefrom.
Election of Directors
Mark E. Schwarz (Age 46) is the Chairman, Chief Executive Officer and Portfolio Manager of Newcastle Capital Management,
L.P., a private investment management firm he founded in 1993 that is the general partner of Newcastle Partners, L.P. Mr. Schwarz
has served as Chairman of the Board of Hallmark Financial Services, Inc., a property and casualty insurance company, since
October 2001 and was its Chief Executive Officer from January 2003 to August 2006. He currently serves as Chairman of the
Board of Bell Industries, Inc., a computer systems integrator, Pizza Inn, Inc., a franchisor and food and supply distributor, and New
Century Equity Holdings Corp., an asset management company, and a director of Nashua Corporation, a specialty paper, label and
printing supplies manufacturer and SL Industries, Inc., a power and data quality products manufacturer. The principal business
address and daytime telephone number of Mr. Schwarz is c/o Newcastle Capital Management, L.P., 200 Crescent Court, Suite
1400, Dallas, Texas 75201, Telephone: [phone]. For information regarding purchases and sales during the past two years by
Newcastle and the Managed Accounts of securities of ServiceMaster that may be deemed to be beneficially owned by Mr. Schwarz,
see Exhibit A.
James A. Risher (Age 63) has been the Managing Partner of Lumina Group, LLC, a private company engaged in the business of
consulting and investing in small and mid-size companies, since 1998. Mr. Risher has served as the CEO and president of Del
Global Technologies Corporation ("Del Global"), a leader in medical imaging and power electronics, since September 2006. Mr.
Risher was appointed interim CEO of Del Global in August 2006. In addition, Mr. Risher has served as a director of Del Global
since June 2004. From February 2001 to May 2002, Mr. Risher served as Chairman and Chief Executive Officer of BlueStar
Battery Systems International, Inc. ("BlueStar"), a Canadian public company that is an e-commerce distributor of electrical and
electronic products to selected automotive aftermarket segments and targeted industrial markets. BlueStar filed a CCAA (a petition
for reorganization under Canadian bankruptcy laws) in August 2001, and a plan of reorganization was approved in November 2001.
From 1986 to 1998, Mr. Risher served as a director, Chief Executive Officer and President of Exide Electronics Group, Inc.
("Exide"), a global leader in the uninterruptible power supply industry. He also served as Chairman of Exide from December 1997
to July 1998. Mr. Risher currently serves as a director of SL Industries, Inc., a power and data quality products manufacturer, in
addition to Del Global. The principal business address and daytime telephone