Exhibit 10.3

 

EXECUTION COPY

 

ASSUMPTION AGREEMENT

 

ASSUMPTION AGREEMENT, dated as of January 14, 2014, made by SMCS Holdco, Inc., a
Delaware corporation, and SMCS Holdco II, Inc., a Delaware corporation (each an
“Additional Granting Party” and together, the “Additional Granting Parties”), in
favor of CITIBANK, N.A., as administrative agent and collateral agent (in such
capacity, the “Collateral Agent”) for the banks and other financial institutions
(the “Lenders”) from time to time parties to the Credit Agreement referred to
below and the other Secured Parties (as defined below).  All capitalized terms
not defined herein shall have the meaning ascribed to them in such the Guarantee
and Collateral Agreement referred to below, or if not defined therein, in the
Credit Agreement.

 

W I T N E S S E T H :

 

WHEREAS, The ServiceMaster Company, a Delaware corporation (to be merged with
and into The ServiceMaster Company, LLC, a Delaware limited liability company,
on the date hereof) (the “Borrower”), Citibank, N.A., as administrative agent
and collateral agent, JPMorgan Chase Bank, N.A., as syndication agent and the
Lenders are parties to a Credit Agreement, dated as of July 24, 2007 (as
amended, supplemented, waived or otherwise modified from time to time, the
“Credit Agreement”);

 

WHEREAS, the Borrower, CDRSVM Holding, Inc., a Delaware corporation (to be
converted into CDRSVM Holding, LLC, a Delaware limited liability company, on the
date hereof) (“Holding”) and the Subsidiary Guarantors are, or are to become,
parties to the Guarantee and Collateral Agreement, dated as of July 24, 2007 (as
amended, supplemented, waived or otherwise modified from time to time, the
“Guarantee and Collateral Agreement”), in favor of the Collateral Agent, for the
ratable benefit of the Secured Parties (as defined in the Guarantee and
Collateral Agreement);

 

WHEREAS, each Additional Granting Party is a member of an affiliated group of
companies that includes the Borrower and each other Granting Party; the proceeds
of the extensions of credit under the Credit Agreement will be used in part to
enable the Borrower to make valuable transfers to one or more of the other
Granting Parties (including the Additional Granting Parties) in connection with
the operation of their respective businesses; and the Borrower and the other
Granting Parties (including the Additional Granting Parties) are engaged in
related businesses, and each such Granting Party (including the Additional
Granting Parties) will derive substantial direct and indirect benefit from the
making of the extensions of credit under the Credit Agreement;

 

WHEREAS, the Credit Agreement requires each Additional Granting Party to become
a party to the Guarantee and Collateral Agreement; and

 

WHEREAS, each Additional Granting Party has agreed to execute and deliver this
Assumption Agreement in order to become a party to the Guarantee and Collateral
Agreement;

 

NOW, THEREFORE, IT IS AGREED:

 

1

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1.                                      Guarantee and Collateral Agreement.  By
executing and delivering this Assumption Agreement, each Additional Granting
Party, as provided in subsection 9.15 of the Guarantee and Collateral Agreement,
hereby becomes a party to the Guarantee and Collateral Agreement as a Granting
Party thereunder with the same force and effect as if originally named therein
as a Guarantor, Grantor and Pledgor (it being understood that each Additional
Granting Party is no longer an Immaterial Subsidiary) and, without limiting the
generality of the foregoing, hereby expressly assumes all obligations and
liabilities of a Guarantor, Grantor and Pledgor thereunder.  The information set
forth in Annex 1-A hereto is hereby added to the information set forth in the
Schedules to the Guarantee and Collateral Agreement, and such Schedules are
hereby amended and modified to include such information.  Each Additional
Granting Party hereby represents and warrants that each of the representations
and warranties of such Additional Granting Party, in its capacities as a
Guarantor, Grantor and Pledgor contained in Section 4 of the Guarantee and
Collateral Agreement is true and correct in all material respects on and as the
date hereof (after giving effect to this Assumption Agreement) as if made on and
as of such date.

 

2.                                      GOVERNING LAW.  THIS ASSUMPTION
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

 

[remainder of page intentionally left blank]

 

2

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IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be
duly executed and delivered as of the date first above written.

 

 

SMCS HOLDCO, INC.

 

 

 

 

 

By:

/s/ Alan J. M. Haughie

 

 

Name:

Alan J. M. Haughie

 

 

Title:

President & Chief Financial Officer

 

 

 

 

 

 

 

SMCS HOLDCO II, INC.

 

 

 

 

 

By:

/s/ Alan J. M. Haughie

 

 

Name:

Alan J. M. Haughie

 

 

Title:

President & Chief Financial Officer

 

[Signature Page to Assumption Agreement — Term Loan GCA]

 

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Acknowledged and Agreed to as
of the date hereof by:

 

CITIBANK, N.A.,
as Collateral Agent and Administrative Agent

 

 

By:

/s/ Alvaro De Velasco

 

 

Name:

Alvaro De Velasco

 

 

Title:

Vice President

 

 

 

(212) 816-4312

 

 

[Signature Page to Assumption Agreement — Term Loan GCA]

 

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Annex 1-A to
Assumption Agreement

 

Supplement to
Guarantee and Collateral Agreement
Schedule 1

 

NOTICE ADDRESSES OF GUARANTORS

 

SMCS Holdco, Inc.

 

860 Ridge Lake Boulevard

 

Memphis, Tennessee 38120

 

Attention: Alan J. Haughie, President & CFO

 

& James T. Lucke, Senior Vice President

 

Telephone: (901) 766-1400

 

Facsimile: (901) 766-1107

 

 

 

SMCS Holdco II, Inc.

 

860 Ridge Lake Boulevard

 

Memphis, Tennessee 38120

 

Attention: Alan J. Haughie, President & CFO

 

& James T. Lucke, Senior Vice President

 

Telephone: (901) 766-1400

 

Facsimile: (901) 766-1107

 

 

 

In each case, with copies to:

 

 

 

The ServiceMaster Company, LLC

 

860 Ridge Lake Boulevard

 

Memphis, Tennessee 38120

 

Attention: James T. Lucke, Senior Vice President & General Counsel

 

Telephone: (901) 766-1400

 

Facsimile:  (901) 766-1107

 

 

 

and

 

 

 

Debevoise & Plimpton LLP

 

919 Third Avenue

 

New York, New York 10022

 

Attention:   David A. Brittenham, Esq.

 

Facsimile:  (212) 909-6836

 

Telephone: (212) 909-6000

 

 

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Supplement to
Guarantee and Collateral Agreement
Schedule 2

 

Pledged Stock

 

Pledgor

 

Issuer

 

Cert. No., etc.

 

Equity
Interest

 

SMCS Holdco, Inc.

 

ServiceMaster Consumer Services, LP

 

n/a

 

50

%

SMCS Holdco, Inc.

 

Terminix International, Inc.

 

4, representing 1,000 shares

 

100

%

SMCS Holdco II, Inc.

 

ServiceMaster Consumer Services, LP

 

n/a

 

50

%

 

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Supplement to
Guarantee and Collateral Agreement
Schedule 3

 

PERFECTION MATTERS

 

UCC Filings

 

Debtor

 

Jurisdiction

SMCS Holdco, Inc.

 

Delaware

SMCS Holdco II, Inc.

 

Delaware

 

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Supplement to
Guarantee and Collateral Agreement
Schedule 4

 

LOCATION OF JURISDICTION OF ORGANIZATION

 

Grantor

 

Jurisdiction of Organization

SMCS Holdco, Inc.

 

Delaware

SMCS Holdco II, Inc.

 

Delaware

 

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Supplement to
Guarantee and Collateral Agreement
Schedule 5

 

INTELLECTUAL PROPERTY

 

None.

 

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Supplement to
Guarantee and Collateral Agreement
Schedule 6

 

EXCLUDED CONTRACTS

 

None.

 

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Supplement to
Guarantee and Collateral Agreement
Schedule 7

 

COMMERCIAL TORT CLAIMS

 

None.

 

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