American Home Shield 2009 Annual Report Download - page 25

Table of Contents
certain stock option plans. On January 5, 2010, the Court preliminarily approved a settlement agreement that calls for the Company to pay monies into a
settlement fund that will be used to pay all claims asserted, or arising, from cancellation of the stock options, including claims for attorney fees related thereto.
The amount to be paid into the settlement fund is not material to the Company's financial condition or results of operations. The Court has set the final
approval hearing for March 30, 2010.
Wisconsin Department of Agriculture
On April 22, 2008, TruGreen LawnCare met with the Wisconsin Department of Agriculture, Trade and Consumer Protection, to propose a remediation
plan regarding soil contamination allegedly caused by spills of fertilizer from its trucks and tanks. After discussions with the Wisconsin Department of
Agriculture, Trade and Consumer Protection, a remediation plan was agreed to, pursuant to which remediation work commenced in October 2009 and was
completed in November 2009 for aggregate expenditures that were not material to the Company's financial condition or results of operations.
Other Legal Proceedings
In the ordinary course of conducting business activities, the Company and its subsidiaries become involved in other judicial, administrative and
regulatory proceedings involving both private parties and governmental authorities. These proceedings include insured and uninsured employment, general,
and commercial liability actions (on an individual and class basis) and environmental proceedings. Additionally, the Company has entered into settlement
agreements in certain cases, including putative class actions, which are subject to court approval. If one or more of these settlements are not finally approved,
the Company could have additional or different exposure. The Company does not expect any of these proceedings to have a material effect on its financial
position, results of operations and cash flows; however, the Company can give no assurance that the results of any such proceedings may not be material to its
financial position, results of operations and cash flows for any period in which costs, if any, are recognized.
ITEM 4. (REMOVED AND RESERVED)
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
EQUITY SECURITIES
The Company's sole class of issued equity is common stock. As of March 30, 2010, all of the Company's common stock was owned by CDRSVM
Holding, Inc.
On July 24, 2007, the Company completed the Merger pursuant to which, the Company's publicly traded securities were cancelled in exchange for cash.
As a result of the Merger transaction, the Company became a privately held corporation, and its equity shares are no longer publicly traded. The Company has
not paid any dividends since the Merger. There are restrictions on the Company's, and its subsidiaries', ability to pay dividends in the future. For further
discussion see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Annual Report on Form 10-K.
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