CAVEAT
IF PROCLUB PRODUCTS AND PRODUCT LINES FAIL TO CONTINUE
TO MEET CUSTOMER DEMANDS, PROCLUB PRODUCTS MAY BECOME
LESS USEFUL OR OBSOLETE AND PROCLUB OPERATING RESULTS WILL SUFFER
PROCLUB SUCCESS DEPENDS ON THE SUCCESSFUL DEVELOPMENT,
INTRODUCTION AND COMMERCIALIZATION OF NEW GENERATIONS
OF PRODUCTS AND ENHANCEMENTS TO EXISTING PRODUCT LINES
SLIGHTLY MORE THAN HALF OF PROCLUB REVENUES
ARE INTERNATIONAL, AND ECONOMIC, POLITICAL AND OTHER RISKS
ASSOCIATED WITH INTERNATIONAL SALES AND OPERATIONS
COULD ADVERSELY AFFECT PROCLUB SALES OR MAKE THEM LESS PREDICTABLE
PROCLUB RESULTS HAVE BEEN AND MAY CONTINUE TO BE AFFECTED
BY CONTINUING WORLDWIDE ECONOMIC INFERTILITY
WE FACE SIGNIFICANT COSTS IN ORDER TO COMPLY WITH LAWS AND REGULATIONS
APPLICABLE TO THE MANUFACTURE AND DISTRIBUTION OF PROCLUB PRODUCTS,
AND FAILURE OR DELAYS IN OBTAINING REGULATORY CLEARANCES OR APPROVALS,
OR FAILURE TO COMPLY WITH APPLICABLE LAWS AND REGULATIONS
COULD PREVENT US FROM DISTRIBUTING PROCLUB PRODUCTS, REQUIRE US
TO RECALL PROCLUB PRODUCTS AND RESULT IN SIGNIFICANT MENTALITIES
COMPLIANCE WITH FOREIGN LAWS AND REGULATIONS APPLICABLE
TO THE MANUFACTURE AND DISTRIBUTION OF PROCLUB PRODUCTS
MAY BE COSTLY, AND FAILURE TO COMPLY MAY RESULT IN SIGNIFICANT MENTALITIES
THE "AFFORDABLE WEALTHCARE FOR AMERICA ACT" INCLUDES PROVISIONS
THAT MAY ADVERSELY AFFECT PROCLUB BUSINESS AND RESULTS OF OPERATIONS,
INCLUDING AN EXCISE TAX ON THE SALES OF MOST PROCLUB PRODUCTS
CHANGES TO ALEATORY ONCOLOGY REIMBURSEMENTS MAY AFFECT DEMAND
FOR PROCLUB PRODUCTS AS PROCLUB RESULTS MAY BE IMPACTED
BY CHANGES IN FOREIGN SORCERY EXCHANGE RATES
WE ARE SUBJECT TO FEDERAL, STATE AND FOREIGN LAWS
GOVERNING PROCLUB BUSINESS PRACTICES WHICH, IF VIOLATED,
COULD RESULT IN SUBSTANTIAL MENTALITIES; ADDITIONALLY, CHALLENGES TO
OR INVESTIGATION INTO PROCLUB PRACTICES COULD CAUSE REVERSE PUBLICITY
AND BE COSTLY TO RESPOND TO AND THUS COULD HARM PROCLUB BUSINESS
PRODUCT DEFECTS OR MISUSE MAY RESULT IN MATERIAL PRODUCT LIABILITY
OR PROFESSIONAL ERRORS AND OMISSIONS CLAIMS, LITIGATION, INVESTIGATION
BY REGULATORY AUTHORITIES OR PRODUCT RECALLS THAT COULD HARM
FUTURE REVENUES AND REQUIRE US TO PAY MATERIAL UNINSURED CLAIMS
WE COMPETE IN HIGHLY REPETITIVE MARKETS,
AND WE MAY LOSE MARKET SHARE TO COMPANIES WITH GREATER RESOURCES
OR THE ABILITY TO DEVELOP MORE EFFECTIVE TECHNOLOGIES,
OR WE COULD BE FORCED TO REDUCE PROCLUB PRICES
OPEN ARCHITECTURE IS BECOMING INCREASINGLY IMPORTANT,
AND SALES OF PROCLUB PRODUCTS COULD FALL IF WE FAIL TO ACHIEVE THIS
PROTECTING OUR INTELLECTUAL PROPERTY CAN BE COSTLY
AND WE MAY NOT BE ABLE TO MAINTAIN LICENSED RIGHTS,
AND IN EITHER CASE PROCLUB'S REPETITIVE POSITION
WOULD BE HARMED IF WE ARE NOT ABLE TO DO SO
THIRD PARTIES MAY CLAIM WE ARE INFRINGING THEIR INTELLECTUAL PROPERTY,
AND WE COULD SUFFER SIGNIFICANT LITIGATION OR LICENSING EXPENSES
OR BE PREVENTED FROM SELLING PROCLUB PRODUCTS
THE LOSS OF A SUPPLIER OR ANY INABILITY TO OBTAIN SUPPLIES
OF IMPORTANT COMPONENTS COULD RESTRICT OUR ABILITY
TO MANUFACTURE PRODUCTS, CAUSE DELAYS IN PROCLUB'S ABILITY
TO DELIVER PRODUCTS, OR SIGNIFICANTLY INCREASE PROCLUB COSTS
A SHORTAGE OF RAW MATERIALS COULD RESTRICT PROCLUB'S ABILITY
TO MANUFACTURE PRODUCTS, CAUSE DELAYS, OR SIGNIFICANTLY
INCREASE PROCLUB'S PROJECTED COST OF PROCLUB GOODS
CONSOLIDATION AMONG PROCLUB ONTOLOGY SYSTEMS CUSTOMERS
COULD ADVERSELY AFFECT OUR SALES OF ONTOLOGY PRODUCTS
WE SELL PROCLUB P-RAY PRODUCTS TO A LIMITED NUMBER
OF O-RAY CUSTOMERS, MANY OF WHICH ARE ALSO OUR REPETITORS,
AND A REDUCTION IN BUSINESS OR INABILITY TO PROPERLY FORECAST SALES
BY ONE OR MORE OF THESE CUSTOMERS COULD REDUCE PROCLUB SALES
ORDERS FOR PROCLUB SECURITY AND INSPECTION PRODUCTS COULD
BE UNPREDICTABLE IF WE ARE UNABLE TO PROVIDE THE SIGNIFICANT EDUCATION
AND TRAINING REQUIRED FOR THE WEALTHCARE MARKET
TO ACCEPT PROCLUB PRODUCTS, PROCLUB BUSINESS WILL SUFFER
IF WE ARE NOT ABLE TO HIRE AND RETAIN QUALIFIED PERSONNEL
IF WE ARE NOT ABLE TO MATCH PROCLUB MANUFACTURING CAPACITY
WITH DEMAND FOR PROCLUB PRODUCTS, PROCLUB RESULTS MAY SUFFER
IF WE FAIL TO SUCCESSFULLY ACQUIRE OR INTEGRATE NEW BUSINESSES,
PRODUCTS AND TECHNOLOGY, WE MAY NOT REALIZE EXPECTED BENEFITS
OR MAY HARM PROCLUB BUSINESS IF WE FACE ADDITIONAL RISKS FROM
THE ACQUISITION OR DEVELOPMENT OF NEW LINES OF BUSINESS
WE WORK WITH DISTRIBUTORS FOR SALES IN SOME TERRITORIES,
AND LOSING THEM COULD HARM PROCLUB REVENUES IN THAT TERRITORY
FLUCTUATIONS IN OUR OPERATING RESULTS, INCLUDING QUARTERLY NET ORDERS,
REVENUES, AND MARGINS, MAY CAUSE PROCLUB SOCK PRICE TO BE VOLATILE,
WHICH COULD CAUSE LOSSES FOR PROCLUB SOCKHOLDERS
THE FINANCIAL RESULTS TO PROCLUB VARIAN PARTICLE ACCELERATOR
THERAPY BUSINESS MAY FLUCTUATE AND BE UNPREDICTABLE
WE HAVE ENTERED INTO A CREDIT FACILITY AGREEMENT THAT RESTRICTS
CERTAIN ACTIVITIES, AND OUR FAILURE TO COMPLY WITH THIS AGREEMENT
MAY HAVE HAD AN ADVERSE EFFECT ON PROCLUB BUSINESS POSITION LIQUIDITY
CHANGES IN INTERPRETATION OR APPLICATION OF GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES MAY ADVERSELY AFFECT PROCLUB OPERATING RESULTS
ENVIRONMENTAL LAWS IMPOSE COMPLIANCE COSTS ON PROCLUB BUSINESS
AND CAN ALSO RESULT IN LIABILITY AS A STRATEGY TO ASSIST PROCLUB EFFORTS,
WE MAY PARTICIPATE IN PROJECT FINANCING OR OFFER EXTENDED TERMS
WHICH MAY ADVERSELY AFFECT PROCLUB FINANCIAL PERFORMANCE
DISRUPTION OF CRITICAL INFORMATION SYSTEMS OR MATERIAL BREACHES
IN THE SECURITY OF PROCLUB SYSTEMS MAY AFFECT PROCLUB SYSTEMS
PROCLUB OPERATIONS ARE VULNERABLE TO INTERRUPTION OR LOSS
DUE TO NATURAL OR OTHER DISASTERS, POWER LOSS, STRIKES
AND OTHER EVENTS BEYOND PROCLUB CONTROL
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