intelex, ltd. understanding the executive profile · extensive due diligence, regarding...

Intelex, Ltd. Understanding the Executive Profile

Intelex’s Services Page 1

Intelex’s Services

Answering the “Who” in the Investment Equation.

Intelex, Ltd. is an international business intelligence and research firm whichworks closely with investment banks, venture capital firms, private equitygroups, and companies who require comprehensive intelligence and/or

extensive due diligence, regarding entrepreneurs, corporations, and other entitiesseeking financing.

Intelex is headquartered in the New YorkMetropolitan Area (Greenwich, Connecticut).In order to best serve your needs, Intelex hasfield representatives and consultants who arestrategically positioned throughout the UnitedStates and Europe. In addition, Intelex isaffiliated with the Tokyo Intelligence andResearch Center, which serves as liaison forour operations throughout the Pacific Rim.

While most of our clients are members of theinvestment community, our services are

frequently utilized by a wide range of business enterprises seeking to enhancetheir competitive edge and marketplace acumen. Intelex's intelligence focus islimited to products which enhance the investment and due diligence process.

Our products are primarily comprised of, but not limited to, the following:

Executive Profiles Corporate Profiles

Country ProfilesCompetitive Intelligence StudiesStrategic Acquisition Searches


Applications of the Executive Profile Page 2

Applications ofExecutive Profiles

“How can we use your Executive Profiles?”

Intelex's Executive Profiles enhance your evaluation process by providing keydecision makers with the information needed to move forward securely andwith confidence. Applications include:

Every year hundreds of companies fail,many with a viable and potentiallyprofitable product or service. Much of

the time the blame falls on undercapitalization.However, for companies which receivefinancing this usually has less to do with theamount of capital, than it does with thecompany's ability to manage it.

When investing in a company, you are doing much more than investing in atechnology or a concept. You are investing in the management team's ability toturn that technology or concept into a profitable business venture.

By gaining a clear and unbiased understanding of the management team, you canstudy and evaluate key issues necessary to forecast the team's ability to succeed.

When conducting strategic, operational, or tactical planning, it isimperative you understand the mindset of your competition and theirstrategic direction.

Intelex's Executive Profiles provide a framework for analyzing keydecisionmakers' strategies and tactics. More specifically, we examine pastexperience and historical actions, personality makeup, and environmentalinfluences.

INVESTMENT & ACQUISITION DUE DILIGENCE

COMPETITIVE INTELLIGENCE ANALYSIS


Applications of the Executive Profile Page 3

Poor hiring tactics in the 90's can be a very costly, and often irreversible,mistake. The implementation of an effective screening process, which notonly verifies past credentials but also projects future performance, allows

your company to hire more intelligently and simultaneously limit the risk ofliability.

Intelex's three levels of Executive Profiles provide the company, or equity partner,with the tools needed to evaluate a potential candidate's suitability formanagement and senior management positions.

For companies with special security concerns, such as those involved withproprietary information or military/government contracts, Inteleximplements a program to screen individuals being considered for sensitive

positions, and uses routine monitoring to catch potential problems before theyoccur.

PRE-EMPLOYMENT SCREENING

POSITIVE VETTING


Intelex’s Process Page 4

Intelex’s Process

“What methodology does Intelex use?”

Immediately upon receipt of your authorization package, Intelex assembles aproject team to carry out the assignment. Our project manager and analystsworking on the assignment are full-time Intelex employees with experience in

both background investigation and personality profiling.

To prepare for the initial meeting, our project team reviews all data provided bythe client in the authorization package, including:

The Offering DocumentExecutive Biographies / ResumesRelease FormsAny additional information which may have been included in the authorization package

Intelex reviews the assignment objectives, and prepares to discuss specific issuespertaining to your subject, availability of data, regional concerns and limitations,and any industry specific data, which may affect the study.

PROJECT PLANNING AND REVIEW



The kickoff meeting (by telephone conferencecall) serves several essential purposes in theearly project stages. First, Intelex introduces

the project team to you. Second, the primary pointof contact for the assignment will be established.Finally, Intelex will confirm scope, objectives, andtiming, as well as a selection of your keyintelligence topics and interview discussion points.

Our project manager will listen carefully as youdescribe the subject, particularly those conditions

which caused you to commission the study.

Intelex begins the profiling assignment by verifying all information, such aseducation, past employment, military service, and major accomplishments,contained in the subject's executive biography. In instances where the subject

has signed an Authorization for Release of Personal Information, Intelex will alsoobtain all related documentation such as college transcripts, personnel files, etc.

Next, Intelex will perform a comprehensive series of searches (within the decidedscope of the assignment) designed to uncover all publicly and privately availabledata pertaining to the subject. Data may include:

Intelex completes this phase of the profile process byconducting an exhaustive media search on the subject.Utilizing a two tiered approach, Intelex first performsa standard search which covers all local, regional, andnational newspapers, all major US wire services, anda comprehensive magazine index. Intelex then delvesdeeper into the process by examining press releaseagencies, trade journals, university studies,government reports, and newsletters. This second stepallows Intelex to obtain the types of information that are normally unavailable, orneglected, but serve to provide tremendous insight with regards to the subject.

THE KICKOFF MEETING

SECONDARY SOURCE DATA COLLECTION

Civil litigation Bankruptcies Criminal convictions Banking information Judgments Personal credit report Docket listings Regulatory Actions Liens Media Coverage Corporate affiliations Non-Disclosure of Material Facts



Once all background data has beencompiled, Intelex gathers primary sourcedata on the subject. This information is

obtained through carefully planned telephoneinterviews with the subject and key individuals.Interviews are selected for their ability to speakabout the subject, from both business andpersonal perspectives.

In addition to those individuals with either apersonal or business affiliation, Intelex alsointerviews industry observers, industryparticipants, and sources culled from our mediapull.

Throughout the course of the assignment, Intelex submits weekly writtenSituation Reports advising you of the status of the assignment, alerting youto any "red flags" which have been discovered, and to obtain your

feedback. In addition to written reports, Intelex advises you by telephone of anyissues which require immediate attention.

Intelex performs qualitative andquantitative analysis of data gatheredfrom all sources. We will cross-

correlate data, displaying comparativeinformation in tables and graphs withaccompanying explanatory text.

When appropriate, Intelex will estimatefuture behavioral patterns and conditions,based on primary source views of thesubject and other factors affecting thesubject's environment, coupled with ourexperienced judgment.

We will cross check all data for accuracyand consistency throughout the study. Intelex will conduct multiple edits andreviews of the finished document for coherence, relevance and impact.

PRIMARY SOURCE DATA COLLECTION

SITUATION REPORTS

ANALYSIS



Intelex submits a clear and concise written final report addressing all of theassignment's key intelligence topics. This report will contain an executivesummary as well as appendices containing copies of all data gathered.

If desired, Intelex can also present the assignment results to your transactionteam after you have received and reviewed the written report. This service isprovided at an additional cost.

FINAL REPORT & PRESENTATION (OPTIONAL)

PRESENTATION (OPTIONAL)


Profile Configurations Page 8

Profile Configurations

“Are there various levels of Executive Profiles?”

Intelex has three levels of Executive Profiles to best suit your needs. Thesethree profiles vary in scope, time frame, and budget. Intelex has developedthese product levels after reviewing years of executive level due diligence and

has found these products to be most useful to our clientele.

The Executive Report is a comprehensive background check on anindividual. For this report, Intelex will verify the subject's resume andcollect all secondary source data available on the subject within the

specified scope of the assignment. In addition, Intelex will conduct up to threereference checks with individuals provided to the client by the subject. Intelexwill provide this information in an easy to follow format; however, no in-depthanalysis will be performed.

Although the Executive Report does not provide a current profile of a subject, itwill provide the client with a clear overview of a subject's background. TheExecutive Report is most useful for pre-employment screening of lower level jobcandidates and basic level due diligence prior to deal commencement.

The Executive Assessment is the most frequently requested of our ExecutiveProfiles. By combining both secondary and primary research with in-depthanalysis, Intelex is able to provide the client with a real time profile of the

subject.

Because Intelex's Executive Assessment covers all areas detailed in our ExecutiveReport, a thorough overview of the subject's background is still provided. Usingthis secondary information as a springboard, Intelex conducts primary researchand analysis designed to develop current information about a subject, as well asan in-depth understanding of the subject's personality make-up.

EXECUTIVE REPORT

EXECUTIVE ASSESSMENT


Profile Configurations Page 9

The Executive Assessment is most useful for standard due diligence on asubject prior to the completion of a deal. In addition, the ExecutiveAssessment is ideal for pre-employment screening of executive level

candidates, as well as any individual responsible for classified or proprietaryinformation.

The Executive Estimate is useful when real time intelligence of the subjectis of paramount importance and when it must be gathered bothimmediately and covertly. Intelligence gathering methodology for this

level of report varies from assignment to assignment and is therefore discussedand handled on a per case basis.

EXECUTIVE ESTIMATE


Timing & Budget Page 10

Timing & Budget

“How long will this take and how much will it cost?”

Based on the suggested project configuration, the time frame and budget foran assignment would be as follows:

The above budgets present alternative delivery schedules. Intelex is able to offeran appropriate discount because the longer schedule provides greater flexibility toallocate of our analytic staff.

Upon receipt of your authorization, Intelex will program this study for completionaccording to the timetable you select, and adjust for any delays since the proposalwas issued. Intelex's calendar for completion of assignments changes on a daily

basis, depending on when we receive your authorization,necessary releases, and initial deposit check.

Intelex will plan to hold the kickoff meeting shortly afterreceipt of your authorization. Subsequent milestones, toinclude Situation Reports and interim assignment reviewmeetings, can be scheduled at kickoff.

Additional expenses can include professional fees andtravel charges for kickoff meetings, mid assignmentreviews, and final report presentations, in those caseswhere such activities are appropriate. For example, apresentation of the study results to your transactiongroup can be provided for $750.00 per Intelex Staffmember per day, plus travel related costs.

Profile ConfigurationFor Delivery

In 3 WeeksFor Delivery In

1 Week / 10 DaysExecutive Report $3,500.00 $5,000.00

Executive Assessment $5,000.00 $7,000.00

Executive Estimate Priced by Assignment Priced by Assignment


Timing & Budget Page 11

Under extenuating circumstances, there may be expenses for fees paid tointerviewees for their time addressing the key intelligence topics. Although thisis generally a rare occurrence, we find it most often among highly trainedprofessionals (e.g., physicians), and with experts in certain high-growth industriesthat are continually being targeted by interviewers.

Intelex's billing procedures are as follows:

50 percent initial deposit is required with your signed authorization.

Remaining balance is due upon receipt of the final report.Intelex will invoice for reimbursement of any additional expenses.


Industry Experience Page 12

Industry Experience

Intelex’s support in various industries provides theexperience necessary to serve your needs

AdhesivesAdvertisingAutomotiveAerospace and avionicsBiotechnologyBuilding productsCoal productionCoatingsCompositesComputer hardwareComputer softwareElectronicsFinancial services

Food servicesFossil Fuel productionHazardous wasteHealth care servicesInsuranceMedical electronicsMilitary productsPackagingPharmaceuticalsPublishingSpecialty retailingTelecommunications


International Experience Page 13

InternationalExperience

Intelex has the global experience necessaryto excel in any foreign market

Abu DhabiBahrainCanadaChileFranceGermanyIndiaIndonesiaJapanLatviaLiechtensteinLuxembourgMexicoRussiaSingaporeSouth AfricaSpainUnited Arab EmiratesUnited KingdomUnited StatesUruguayYugoslavia


Our Clientele Page 14

Our Clientele

Intelex has proudly served national andinternational companies

ACE-NetAmerican International GroupArista Capital Atlantic~Pacific CapitalBear StearnsBristol Myers SquibbCooley Godward, LLPCPP Investment BoardDailey CapitalThe Glosswood GroupHeublein CorporationIronwood CapitalKenyon & Kenyon

We are anxious to add your company to our list of satisfied clients.

Marakon & AssociatesMarsh & McLennanMaxam CorporationMcKinley Capital PartnersNokia VenturesProskaur Rose, LLPRiver Cities Capital FundsSalomon Smith BarneySG CowenTriangle Software InternationalU.S. Venture PartnersVested Capital


Appendix I Page 15

Appendix I

Secondary Information Sources

Intelex compiles secondary source data from a variety of public recordrepositories. Intelex's most widely used sources include:

Educational institutionsEmployment records / personnel filesMilitary service records

Bank records Credit reporting services

Real property records Voter registration records Better Business Bureau Chamber of Commerce County Civil Court - Lower County Civil Court - Upper County Superior Court County Municipal Court Local / county tax liens

Department of Motor Vehicles Real Property - Statewide Professional Licensing Corporate fillings Corporate affiliations UCC filings

PERSONAL INFORMATION SOURCES

LOCAL & COUNTY INFORMATION SOURCES

STATE INFORMATION SOURCES


Appendix I Page 16

State Civil Court - Lower State Civil Court - Upper State Superior Court State Municipal Court State Bankruptcy Court State tax liens

Watercraft ownership Aircraft ownership Federal Superior Court Federal Municipal Court Federal Bankruptcy Court Federal tax liens

FEDERAL INFORMATION SOURCES


Appendix II Page 17

Appendix II

Intelex’s Reference Checking Outline

This outline is a general guide to Intelex's general reference checks. Thesereference checks are conducted for all Executive Profiles, and are the onlyinterviews conducted for the Executive Report.

We will gladly modify our reference check to ensure your questions are covered.A typical reference check scenario follows:

I. Intelex's interviewer will identify himself, our firm, the subject, and his position. Unless otherwise directed, Intelex will not reveal our client's name nor the nature of the transaction.

II. Intelex will establish the relationship of the reference to the subject,including:A. Dates, employer, professional relationship and degree of knowledge of

the subject both professionally and / or socially.B. Whether the reference maintained contact with the subject and if the

reference has any comments regarding their relationship.

III. Intelex will question the reference with regard to the subject's management style.A. Does the subject have the ability to anticipate the consequences of his

actions?B. Can the subject handle multiple problems simultaneously?C. Can the subject choose and motivate subordinates? D. What does the subject employ as his principal motivation technique?E. Does the reference have any additional comments on the subject's

management style? F. Can the reference give examples of his performance?

IV. What does the reference consider the subject's strong points? (Intelexwill obtain a minimum of three to four examples)


Appendix II Page 18

V. What does the reference consider the subject's weak points? (Intelex will obtain a minimum of three to four examples)

VI. Intelex will describe the nature of the position and ask the reference for his comments about the subject's suitability for the position and projected job performance.

VII. What adjectives would the reference use to describe the subject?

VIII.Does the reference have any additional comments that he thinks is appropriate or useful?

In writing the report on the reference check, Intelex will include several directquotes from the reference.

intelex, ltd. understanding the executive profile · extensive due diligence, regarding...

Documents