Operational Due Diligence

Christopher Julian Spray of Atlas Venture

Christopher Spray is a board member at Kalido.

Christopher Spray is quoted about Atlas Venture, stating that it has raised a $950 million venture capital fund, Atlas Venture VI, from institutional investors for investment in early-stage technology companies.

Christopher Spray compares venture capitalists and race car driving in relation to the net (web). He compares the pit-stop to the VC teams. “All teams use the same fuel (the money’s a commodity), but good strategy and smart teamwork gets you out ahead. And behind every team there’s a complex web (excuse the expression) of partnerships with sponsors suppliers etc.”

Christopher Spray says NASDAQ is the market they prepare their companies for not London’s AIM market.

After a third round of venture financing, the software maker Kalido had total investments of $43.5 million in 2005. Christopher Spray states the decision to provide additional funding to this once one-product company was to accelerate product development and expand sales.

In 2003, e-commerce companies received almost 50% more private equity funding.

In 2004, Atlas Venture hired Fred Destin, a software investor. Mr. Spray said he would compliment the existing team.

Christopher Spray mentioned that Atlas Venture is pleased to continue their involvement with Choreology in 2004.

Christopher spray is quoted in articles about the market and venture capitalists.

In September 2003 Christopher Spray was a speaker at the Venture Journey Europe Conference in London.

In 2002, Atlas Venture closed its Seattle and Menlo Park, Calif., offices. They said they would make no new investments on the West Coast.

In 2002 venture capitalists cut back. The cuts brought the amount of capital being returned to limited partners this year to $3.18 billion.

In 2001 confidence in venture capitalists reached an all time low.

In 1996 Atlas Venture launched its first partnership that featured an international strategy. The Atlas Venture Fund lll will back high-technology companies. Christopher Spray said that investors are now more willing to invest in international partnerships.

Manbir Nayyar Singh of Gracie Capital, LP

In April of 2006, a group of investors, including Daniel Nir of Gracie Capital, acquired a 5.4% stake in Shaper Image Corp. and opened discussion with management about improving the company’s operations.

In 2005, Gracie Capital LP was listed as a 4% owner in Energy XXI Acquisition Corporation Limited.

In 2005, Daniel Nir of Gracie Capital spoke at the “Hedge Funds vs. Malaria Leadership Conference” in New York City, NY.

In March of 2003, UBS PW allocated assets to Gracie Capital as part of their Event & Equity fund of funds.

In 2003, Gracie Capital founder, Daniel Nir, donated $50,000 to NY State Attorney General, Eliot Spitzer’s political campaign.

In 2002, Daniel Nir of Gracie Capital and Douglas Hirsch of Seneca Capital organized a fund raising conference called the “Seventh Annual Tomorrows Children’s Fund Ira W. Sohn Investment Research Conference.” All the proceeds from the conference would go to the Tomorrows Children’s Fund at Hackensack Medical Center (NJ).

In 2002, Orlando Muyshondt, formerly of Merrill Lynch, joined Gracie Captial LP.

In 2000, Daniel Nir announced his resignation from Alliant Techsystem’s board of directors. He resigned to focus on his investment partners, Gracie Capital.

Manbir Nayyar Singh earned a BSc degree from the University of Alberta in 1984. He was a student in the Department of Computing Science.

Deborah Kay Roesler of Deephaven Capital Management, LLC

In 2004, Deborah Roesler was the contact at Deephaven for the company’s event arbitrage fund.

In 1997, executives at Piper Jaffray told investors that the company’s legal problems were nearly behind them. The CFO, Deb Roesler said that five of the six class-action lawsuits against Piper Jaffray were settled or almost finished.

In 1997, Deborah Roesler wrote an article titled “Teach your people well” for the Financial Executive magazine. The article was about the mentoring program at Piper Jaffray.

James Justin Palmisciano of Gracie Capital, LP

A March 2009 ISDA Credit Derivates Determinations Committees and Auction Settlement CDS Protocol Adherence letter states that P&S Credit Management LP acts as investment manager to Gracie Credit Opportunities Fund LP, Gracie International Credit Opportunities Fund Ltd., and Gracie Credit Opportunities Master Fund LP.

James Palmisciano donated $2,400 in March 2009 to (Kirsten) Gillibrand for Senate.

A March 2008 article about troubles at CIT Group Inc. quotes James Palmisciano, CIO at Gracie Credit Opportunities Fund, as saying, “They have been survivors, and if history is any guide, they can get through this.” He also said that he was considering buying CIT shares.

A June 2006 article (about SemiCentral.com providing Original Equipment Manufacturers and Contract Manufacturers a direct marketplace to buy and sell surplus stock anonymously and at market-level pricing) quotes James Palmisciano, co-head and portfolio manager of Gracie Credit Opportunities Fund, as saying, “This concept works particularly well for an industry that has only a fragmented distribution channel to handle the massive amounts of excess inventory that develop from time to time.”

A June 2005 article quotes James Palmisciano, co-head of Gracie Capital’s Credit Opportunities Fund, as saying, “What we do differently than most credit funds is that we almost always hedge our credit positions against movements in interest rates and de-emphasize carry when thinking about returns. We recognize that carry trades can be akin to picking up change on the railroad tracks. Our emphasis is on capital appreciation: whether spreads go tighter or wider, whether curves flatten or steepen, whether stocks are cheap or expensive relative to credit and so on. We even tend to focus on credit spreads for many positions in distressed debt, which sounds like heresy to some. This gives us the competitive advantage to value the credit world on a consistent, purely spreads basis, and enables us to take advantage of valuation gaps that exist across rigid segments within credit markets that are typically divided by ratings, instruments and regions.”

James Palmisciano and his wife “Missy” were listed as regional co-chairs for a Picture House Gala (Westchester County, NY; Dec. 2006). The couple also served on the Art Matters Host Committee for a June 2009 Pelham Art Center event (Westchester County). James Palmisciano and his wife Michelle donated between $1,000 - $3,499 to the Westchester Children’s Museum (NY). The couple is listed as sophomore supporters of the Pelham Education Foundation (Westchester County).

James Palmisciano, Director at Deutsche Bank AG New York, served as a panelist at the seminar “Researchers’ Perspectives On Credit Derivatives/Synthetic Securitization” at the 2nd Annual Issuers’ and Investors’ Forum On Credit Derivatives/Synthetic Securitization (US) held in New York City in November 2002.

A September 2001 article states that James Palmisciano was recently appointed to the newly created position of credit derivatives strategist at the Deutsche Bank AG investment bank and securities arm. His new role would reportedly focus primarily on the default swap market.

Kevin Alan O’Neal of HBK Investments, LP

Kevin O’Neal is quoted about HBK Investments LP implementing Geneva Software’s global accounting system in 1998.

David Alan Netjes of Kohlberg, Kravis, Roberts & Company

Geradus Hendrikus Montanus of Atlas Venture

Mr. Montanus served on a panel of distinguished experts on the venture fund market to discuss the state of the market and the demands of today’s consumer (July 2000).

Gerard Montanus serves on the Board of Directors of ThreeFive Photonics, an organization based I The Netherlands that produces integrated chips for use in telecommunication networks (August 2002).

Biographies of Mr. Montanus were located, highlighting his role as the Senior Partner of Atlas Venture. He also serves on the boards of the following organizations: Azea Networks, eDreams, Nexagent, and Xelerated.

Tobin Victor Levy of Goldman Sachs & Company

In September 2004 a number of press releases were issued stating that Tobin Levy and Kent Clark were resigning as directors of various Goldman Sachs funds. Some of these funds included Goldman Sachs Global Tactical Trading III, Goldman Sachs Global Tactical Trading II, Goldman Sachs Global Rel, Goldman SachsGlbEve, and GoldmanSGlbLong/Shrt.

Mr. Levy is on the Board of Trustees at The Princeton Area Community Foundation.

Hugh James Lawson of Goldman Sachs & Company

Hugh Lawson and Nadja Pinnavaia were appointed as co-heads of Goldman Sachs European hedge fund strategies group in November 2002.

The Goldman Sachs Group, Inc announced that it has invited 136 individuals to become Managing Directors as of November 29, 2003, the start of the firm’s fiscal year. Mr. Lawson was one of those invited.

Hugh Lawson was part of a panel at the Fund of Hedge Fund Strategies for 2005-2006. He felt that the industry’s need for intermediaries like fund-of-funds aggregators would remain constant. In addition, he suggested both that funds of funds could have a positive effect on their underlying individual managers by helping them to focus more on generating returns and less on gathering assets, and that funds of funds could contribute to the industry’s gradual process of institutionalization.

Hugh Lawson is quoted about Goldman Sachs European operations in 2005.

In March 2004, Hugh Lawson spoke about Goldman Sachs Hedge Fund Strategies promoting its fund of hedge-funds business to Australian investors through its alliance with JBWere.

In 2003, Hugh Lawson moved from London back to NYC.

Hugh Lawson was quoted about the differences in the UK and European investor’s appetites for hedge funds and private equity.

An article on Active Risk and its misconceptions was found.

Hugh Lawson urges trustees of pension funds to allocate as much as 10% of the pension to a properly diversified hedge fund portfolio.

Mr. Lawson was quoted at a conference about the industry addressing numerous misconceptions among investors regarding taking active risk through hedge funds.

Mitchell David Kaye of Xmark Opportunity GP, LLC

Mitchell D. Kaye is on the Board of Directors for Arius Research, Inc. Arius’s company site contains a brief bio for Mr. Kaye, including education information, past employments, and affiliations.

Mitchell Kaye and Xmark Asset Management announced their support for the decision by Aerogen, Inc.’s Chief Executive Office, Dr. Jane Shaw, to resign from the company by June 30 of 2005. Xmark had repeatedly called upon Aerogen’s Board to remove existing management for, among other reasons, misdirecting the company and allowing its financial condition to deteriorate for the second time in two years. Mr. Kaye was quoted as saying that “we see these recent moves as steps in the right direction…however, we believe that the Board’s work has just begun.”

Xmark Opportunity Funds vigorously opposed the motion to dismiss filed by CepTor Corporation and its Chairman and CEO, William Pursley, characterizing the motion as a “desperate and ill-conceived act.”

In August of 2005, Mitchell Kaye admonished CepTor and its Chairman and CEO for a Breach of Contract in connection with a January 2005 financing transaction. Mr. Kaye said of the CepTor, “deliberately failing to honor contractual responsibilities like this casts a dark shadow over the management of CepTor and its integrity.”

In July of 2005, Mitchell Kaye and Xmark butted heads with Spectrum Pharmaceuticals, Inc. Mr. Kaye was quoted as saying, “we’re not going away…management, I think, believes they’re going to be able to put out press releases and waste shareholder dollars to try and deal with us. But what we are doing…is trying to represent the shareholders better than the company is.”