Common use of Lack of Diversification Clause in Contracts

Lack of Diversification. The Company’s proposed operations, even if successful, will in all likelihood result in the Company’s engaging in a business which is concentrated in only one industry. Consequently, the Company’s activities will be limited to the anti-counterfeiting industry. The Company’s inability to diversify its activities into a number of areas may subject the Company to economic fluctuations within a particular business or industry and, therefore, increase the risks associated with the Company’s operations.