3Ware 2002 Annual Report Download - page 14

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proven to be true, will not materially adversely affect our business, financial condition or operating results. In the
event of any adverse ruling in any such matter, we could be required to pay substantial damages, which could
include treble damages, cease the manufacturing, use and sale of infringing products, discontinue the use of
certain processes or obtain a license under the intellectual property rights of the third party claiming
infringement. There can be no assurance that a license would be available on reasonable terms or at all. Any
limitations on our ability to market our products, any delays and costs associated with redesigning our products
or payments of license fees to third parties or any failure by us to develop or license a substitute technology on
commercially reasonable terms could have a material adverse effect on our business, financial condition and
operating results. See “Risk Factors”.
Environmental Matters
We are subject to a variety of federal, state and local governmental regulations related to the use, storage,
discharge and disposal of toxic, volatile or otherwise hazardous chemicals used in our manufacturing process.
Any failure to comply with present or future regulations could result in the imposition of fines, the suspension of
production or a cessation of operations. In addition, such regulations could require us to acquire costly equipment
or incur other significant expenses to comply with environmental regulations or clean up prior discharges. In this
regard, since 1993, we have been named as a potentially responsible party (“PRP”) along with a large number of
other companies that used Omega Chemical Corporation (“Omega”) in Whittier, California to handle and dispose
of certain hazardous waste material. We are a member of a large group of PRPs that has agreed to fund certain
remediation efforts at the Omega site, which efforts are ongoing.
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