American Home Shield 2009 Annual Report Download - page 24

Table of Contents
ServiceMaster's operating companies own and lease a variety of facilities principally in the United States for branch and service center operations and for
office, storage, call center and data processing space. The following chart identifies the number of owned and leased facilities for each of its operating
segments and Merry Maids as of December 31, 2009. ServiceMaster believes that these facilities, when considered with the corporate headquarters, call center
facility, offices, training facilities and warehouses described above, are suitable and adequate to support the current needs of its business.
Operating Company
Owned
Facilities
Leased
Facilities
TruGreen LawnCare 3 286
TruGreen LandCare 2 130
Terminix 17 448
American Home Shield 1 5
ServiceMaster Clean 0 12
Merry Maids 0 85
ITEM 3. LEGAL PROCEEDINGS
United States Environmental Protection Agency
On April 11, 2006, Terminix received a letter from the EPA, Region 4, demanding reimbursement under CERCLA with respect to the Vertut Packaging
and Blending Superfund Site located in Memphis, Tennessee. Vertut was a former blender and repackager of herbicides, pesticides and wood treating
chemicals. The EPA asserted that Terminix could be liable as a generator of hazardous wastes at the site. In November 2009, this matter was resolved
following a monetary payment and the entry of an Agreed Order of Consent. The amount of the payment was not material to the Company's financial
condition or results of operations.
Class Action suits related to the acquisition of the Company
Following the announcement of the proposed acquisition of ServiceMaster by the Equity Sponsors, five complaints were filed against ServiceMaster
concerning the proposed merger: Kaiman v. Spainhour, et al. (filed in Chancery Court in Memphis, Tennessee); Golombuski v. The ServiceMaster Co., et al.
(filed in Circuit Court in Memphis, Tennessee); Sokol and Bowen v. The ServiceMaster Co., et al. (filed in Circuit Court in Memphis, Tennessee); Palmer v.
The ServiceMaster Co.,et al. (filed in Cook County Circuit Court in Chicago, Illinois); and Smith v. The ServiceMaster Co., et al. (filed in Chancery Court for
Newcastle County, Delaware) ("Smith").
As previously disclosed with respect to the Smith case, on September 29, 2008, the Court approved a settlement agreement that contained no award of
monetary payments to the plaintiffs. The court's approval of settlement is now final and non-appealable, and the Company satisfied the payment of the
plaintiffs' attorneys' fees in November 2008. The amount of the payment of the plaintiffs' attorneys' fees was not material to the Company's financial condition
or results of operations. In November 2009, based on settlement in the Smith case, the plaintiffs in the other cases voluntarily dismissed their cases at no cost
to the Company.
Squires v. The ServiceMaster Company and Clayton, Dubilier & Rice, Inc.
On March 11, 2008, a lawsuit was filed by Vernon Squires, the Company's former General Counsel, on behalf of himself and a putative class, against the
Company and CD&R, in the Chancery Court of Shelby County, Tennessee. The complaint alleges that, in connection with the acquisition of the Company by
the Equity Sponsors, the defendants improperly cancelled out-of-the-money stock options that had been previously granted to individuals in connection with
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