American Home Shield 2009 Annual Report Download - page 17

Table of Contents
as part of its ongoing exposure risk assessment. The EPA may decide that a pesticide we use will be limited or will not be re-registered for use in the United
States. We cannot predict the outcome or the severity of the effect of the EPA's continuing evaluations.
In addition, the use of certain pesticides, herbicides and fertilizer products is regulated by various local, state, federal and international environmental and
public health agencies. These regulations may require that only certified or professional users apply the product or that certain products be used only on
certain types of locations, may require users to post notices on properties to which products have been or will be applied, may require notification to
individuals in the vicinity that products will be applied in the future or may restrict or ban the use of certain products. Although we strive to comply with such
regulations and have processes in place designed to achieve compliance, given our dispersed locations, distributed operations and numerous employees, we
can give no assurance that we may not violate these and other regulations or changes thereto. Even if we are able to comply with all such regulations and
obtain all necessary registrations and licenses, we cannot assure you that the products we apply or the manner in which we apply them, particularly pesticide
products, will not be alleged to cause injury to the environment or to people under any circumstances or will not be banned in certain circumstances. The costs
of compliance, remediation or products liability lawsuits could materially affect our future operating results.
Local, state, federal and foreign agencies regulate the disposal, handling and storage of waste, air and water discharges from our facilities and the
investigation and clean-up of contaminated sites. We could incur significant costs, including clean-up costs, fines and civil or criminal sanctions and claims by
third parties for property damage and personal injury, as a result of violations of, or liabilities under, these laws and regulations. If there is a significant change
in the facts and circumstances surrounding the assumptions upon which we operate or if we are found not to be in substantial compliance with applicable
environmental and public health laws and regulations, it could have a material impact on future environmental capital expenditures and other environmental
expenses and our results of financial position, results of operations and cash flows. In addition, potentially significant expenditures could be required to
comply with environmental laws and regulations, including requirements that may be adopted or imposed in the future.
Local, state, federal and foreign agencies that regulate environmental matters may change environmental laws, regulations or standards, including
imposing new regulations with respect to climate change matters. Changes in any of these or other laws, regulations or standards could materially affect our
financial position, results of operations and cash flows.
We may not be able to adequately protect our intellectual property and other proprietary rights that are material to our business.
Our ability to compete effectively depends in part on our rights to service marks, trademarks, trade names and other intellectual property rights we own
or license, particularly our registered brand names, ServiceMaster, Terminix, TruGreen, TruGreen LandCare, Merry Maids, ServiceMaster Clean, American
Home Shield, AmeriSpec and Furniture Medic. We have not sought to register or protect every one of our marks either in the United States or in every
country in which they are used. Furthermore, because of the differences in foreign trademark, patent and other intellectual property or proprietary rights laws,
we may not receive the same protection in other countries as we would in the United States. If we are unable to protect our proprietary information and brand
names, we could suffer a material adverse effect on our financial position, results of operations and cash flows.
Litigation may be necessary to enforce our intellectual property rights and protect our proprietary information, or to defend against claims by third parties
that our products or services infringe their intellectual property rights. Any litigation or claims brought by or against us could result in substantial costs and
diversion of our resources. A successful claim of trademark, patent or
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