1063980--2/27/2006--CLARK_INC

related topics
{stock, price, share}
{stock, price, operating}
{system, service, information}
{regulation, government, change}
{condition, economic, financial}
{tax, income, asset}
{provision, law, control}
{loss, insurance, financial}
{personnel, key, retain}
{acquisition, growth, future}
{financial, litigation, operation}
{operation, international, foreign}
Risks related to our industry We are substantially dependent on revenue generated by the sale of business-owned life insurance policies. Changes in Federal tax laws and regulations could materially and adversely affect our renewal income and ability to gain new business. Our business is subject to fluctuations in interest rates, stock prices and general economic conditions. We are subject to regulation at the state level. Risks related to our company Our business depends on the renewal commissions we generate from the life insurance policies underlying our clients' compensation and benefit programs. Our quarterly operating results vary dramatically. We are dependent on our management team. We may not be able to successfully implement our acquisition strategy or integrate the businesses we acquire. A substantial portion of our total assets are represented by intangible assets. A majority of our commission revenue is derived from policies written by a limited number of insurance companies. Major stockholders have the ability to influence stockholder action. We are subject to litigation which may have a negative impact on our business and reputation. Errors or omissions in the services we provide our clients may result in liabilities which could have a material adverse effect on our business and reputation. We are dependent on our information processing systems. Risks related to our common stock The issuance of additional common stock may dilute other stockholders. Existing stockholders can sell a substantial number of their shares in the public market which could depress our stock price. Delaware law and our charter documents could prevent an unsolicited takeover.

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