SAMPLE

PRELIMINARY DUE DILIGENCE CHE

CKLI

STIN A CORPORATE TRANSACTION

(e.cr.. M&A Deall

1.1

~ Articles of Incorporation an

d all amendments thereto

1.2

~ By

laws

and

ail amendments thereto

1.3

Minutes of

all me

etin

gs of,

and

ali actions without a mee

ting

by,

the Bo

ard of

Directors (a

nd of all c

ommi

ttee

s thereofl and

the shareholders of t

he Company.

1.4

Any ma

teri

al communications between the Co

mpan

y an

d any of

its s

hare

hold

ers,

dire

ctor

s or holders of no

tes,

opti

ons or

warrants

1.5

Copi

es of all a

greements re

lati

ng to th

e se

curi

ties

of t

he Company or any of

its s

ubsidiaries, in

clud

ing (i) any agreements

relating to the purchase or sa

le of se

curi

ties

of t

he Company; in

clud

ing any pu

rcha

se agreements un

der wh

ich additional

owne

rshi

p of

the Co

mpan

y was ac

quir

ed by ex

isti

ng shareholders (

ii) a

ll stockholders' or

voting agreements, (

iii) al

lag

reem

ents

und

er which any person ha

s any ri

ghts

concerning issued or unissued sec

urit

ies of

the Company (preemptive

righ

ts, r

ight

s of

first r

efus

al, r

egis

trat

ion ri

ghts

, opt

ions

, war

rant

s or

conv

erti

ble s

ecurities), (iv) a

ll agreements under which

voting trusts have been established, and

(v) SAR, phantom, st

ock or

other equ

ity-ba

sed ar

rang

emen

ts

1.6

Stoc

k re

gist

er and

transfer books an

d re

cord

s an

d a de

scri

ptio

n of

the cl

asse

s an

d se

ries

of a

utho

rize

d ca

pita

l sto

ck and

othe

r sec

urit

ies of

the Co

mpan

y an

d it

s subsidiaries, and

a statement of t

he number of

issued and

outstanding shares of

each

suc

h class an

d se

ries

of s

ecurities an

d the number of t

reas

ury shares of e

ach class an

d se

ries

of ca

pita

l sto

ck

1.7

~ List of s

hareholders along with the number an

d class of

shares held by

each

1.8

A sch

edul

e of

all o

utstanding opt

ions

, war

rant

s an

d co

nver

sion

pri

vile

ges,

incl

udin

g date of is

suan

ce, e

xercise or

conv

ersi

on pri

ces an

d am

ount

exercised, and

list o

f ho

lder

s (in

clud

e name, number of options he

ld, o

ption prices, dates) o

fgrant, an

d po

siti

on of ho

lder

in the

Com

pany

).

1.9

Lists an

d descriptions of c

lass

es, a

mounts and

current hol

ders

of any de

bt se

curi

ties

, tog

ethe

r with copies of

all d

ocum

ents

and instruments re

lati

ng thereto

1,10

Li

st of st

ates

in which the Company conducts any bu

sine

ss, a

schedule of st

ates

in which the Company is le

gall

y qualified

to con

duct

business and a des

crip

tion

of it

s activities in each such state

1.11

List

s an

d descriptions of all s

ubsi

diar

ies,

affi

liat

es, and

joint ventures, in

cluding organizational cha

rts sh

owin

g the

ownership of each en

tity

and

any agreements related th

eret

o

1.12

~ Li

st of all c

orporate pol

icie

s an

d pr

oced

ures

lhan

dboo

ks

1.13

~ All documents cr

eati

ng res

tric

tion

s wi

th respect to an

y class of

capital sto

ck or other equity int

eres

ts.

1.14

Li

st of all f

amily an

d ot

her re

lati

onsh

ips known to the Company among stockholders that mig

ht ind

icat

e be

nefi

cial

ownership of sto

ck other than as shown on the st

ock record boo

ks of the Company

1.15 r

Cop

ies of any

"S corporation" elections, IRS

not

ices

of ac

cept

ance

and

any oth

er inf

orma

tion

pertinent to the Company's "S

corp

orat

ion"

status, w

here

applicable

1.16

Copi

es of ou

tsid

e va

luat

ions

performed on st

ock or

opt

ions

uti

lize

d for the purpose of rec

ordi

ng related compensation

expe

nse

1.17

Prov

ide th

e information re

ques

ted in items A(1)-(6) above for each su

bsid

iary

of the Company (e

ach a "Subsidiary"), shown

separately for each Su

bsid

iary

1.18

List

of each ent

ity in which the

Company is a partner, gen

eral

partner orj

oint

venture and

description of th

e nature of any

such

arr

ange

ment

s.

2.1

Schedule of all c

urrent fu

ll-time an

d pa

rt-t

ime employees, co

ntai

ning

for each employee (i

) title and

a bri

ef summary of hi

s or

her j

ob description and

res

pons

ibil

itie

s, (i

i) th

e em

ploy

ee dat

e of hire, (i

ii) any com

pens

atio

n or

other benefits such

employee is en

titl

ed to re

ceiv

e (or

may ele

ct to receive) pursuant to

any

employee benefit pl

an or policy, (

iv) c

learance

levels, (v)

cont

ract

to which they are assigned, (vi) ed

ucat

iona

l levels, (

vii) bi

ll rate, (vii

i) pay rate, (ix) yea

rs of ex

peri

ence

,

and (x

) location

2.2

Schedule of executives and

directors con

tain

ing (i

) brief-bio, (

ii) tot

al com

pens

atio

n an

d (iii) dat

e of

hire

with Company

2.3

Copies of resumes fo

r ke

y ma

nage

ment

2.4

Sche

dule

of all c

onsu

ltan

ts and

tem

pora

ry employees and

cop

ies of

com

pens

atio

n ra

tes an

d as

soci

ated

agencylconsulting

agre

emen

ts

2.5

Organizational chart by functional are

a, in

cluding employee names and

titles, and

hea

dcou

nt

2.6

Copies of all HR rel

ated

pol

icie

s an

d procedures, i

ncluding sic

k le

ave an

d va

cati

on pol

icie

s

2.7

Copies of all o

ffer le

tter

s, employment ag

reem

ents

, severance agr

eeme

nts,

non

-competition agreements, bon

us agreements,

rete

ntio

n agreements and

lor any si

mila

r agr

eeme

nts between the Company and

any

of its e

mployees, c

onsultants or ag

ents

2.8

Special terms or

agreements fo

r commission, bonus, or

other inc

enti

ve com

pens

atio

n

2.9

Detailed des

crip

tion

of f

ringe be

nefi

ts and

pool to

include to

tal annual cos

t to

the company fo

r each fri

nge benefit; Also

provide literature that is

pre

sent

ed to applicants and

new employees

2.10

Plan doc

umen

ts, summary pla

n de

scri

ptio

ns, record-k

eepi

ng agr

eeme

nts,

and

ins

uran

ce cer

tifi

cate

s for

all pl

ans

(retirement, medical, l

ife i

nsur

ance

, AD&D, gr

oup tr

avel

, dependent li

fe insurance, l

ong term disability, HMOs, de

ntal

, vis

ion,

Sect

ion 125 plans, se

verance pl

ans,

executive be

nefi

t plans, bon

us plans, s

tock purchase plans or arrangements, st

ock

option plans, g

roup or key man life i

nsur

ance

plans, s

alary co

ntin

uati

on pla

ns, supplemental un

empl

oyme

nt ben

efit

plans,

and welfare pl

ans)

. Also include any amendment

s or riders or

any proposed amendments or riders and

any resolutions

adopting the pla

ns and

/or am

endm

ents

.

2.11

Description of

bon

us pla

n an

d procedures to include all e

mployees

2.12

Summary of mo

st recent 4

01K pl

an non

disc

rimi

nati

on test -

ADPIACP 410

(b) and

415

tests

2.13

IRS determination letters f

or any qua

lifi

ed retirement pl

an

2.14

Correspondence pertaining to

any IRS

pla

n discrimination

2.15

Contracts with all ben

efit

s ca

rrie

rs to include current rates. Also include a br

eakd

own of

wha

t the employer pays fo

r each

bene

fit a

nd wha

t the employee pay

s fo

r each ben

efit

2.16

Audi

ted Fi

nanc

ial St

atem

ents

for

all t

he Company employee be

nefi

t plans

2.17

Copies of Fo

rm 5500s for

the three most recent pla

n years

2.18

Turnover data an

d ra

tes fo

r the pa

st two yea

rs to include a

list

of all e

mployees terminated from employment with the

Company (v

oluntarily or in

volu

ntar

ily)

and

the rea

sons

for

term

inat

ion

2.19

Sche

dule

of be

nefi

ts for

retired employees and

number of

per

sons

cov

ered

2.20

Empl

oyme

nt ap

plications for

the last 2 years -

OR Sam

ple of

job application an

d metrics fo

r past hires

2.21

Affirmative Action Plans and

EEO.1, Vets-100, and

EO surveys reports for

the las

t two years as well as a history of

any

audi

ts and

fin

ding

s (wh

ere applicable)

2.22

Desc

ript

ion of

any settlements (c

ash,

backpay, etc.) mad

e to

employees, for

mer employees or

applicants wi

thin

the past f

ive

years

2.23

Schedule of all e

mployee claims, i

ncluding wor

ker'

s co

mpen

sati

on, e

mployment di

scri

mina

tion

, lab

or con

trac

t grievances,

unfa

ir labor practices, e

tc. w

ith a br

ief d

escr

ipti

on of each

2.24

Documents on

any wag

e an

d ho

ur audits cu

rren

tly in

process including FLSA, stat

e wa

ge aud

its,

unemployment, et

c.

2.25

Agreements and

con

trac

ts with pl

an inv

estm

ent pr

ovid

ers an

d pl

an service pro

vide

rs

2.26

Fidelity bon

ds of the pl

an and

lor pl

an fid

ucia

ries

and

sample of

most recent employee statement fo

r pl

an

2.27

If any of the be

nefi

t pl

ans is

a "multiemployer pl

an" wi

thin

the meaning of ER

ISA§

3(37

), pr

ovide either: (a)

an estimate,

prov

ided

by the pl

an administrator of each suc

h plan, o

f the withdrawal liability t

hat would be inc

urre

d by

the Com

pany

, if it

were

to effect a complete wi

thdr

awal

fro

m su

ch pla

n during the current pla

n year; o

r (b)

copi

es of the current actuarial re

port

for each suc

h pl

an and

a li

st of t

he tot

al contributions made by the Company to each suc

h pl

an for

each of

the last thr

eeyears.

2.28

Schedule lis

ting

any large case medical claims (o

ver $3

0,00

0, if

Company is

res

pons

ible

for

pay

ment

or indemnity

2.29

All collective bargaining agreements and

union contracts, i

f applicable

2.30

Copies of any nondisclosure an

d assignment of inventions agr

eeme

nts or si

mila

r agreements bet

ween

the Company and

its

employees, co

nsul

tant

s an

d ag

ents

2.31

Schedule li

stin

g all s

ales

per

sons

including dollar am

ount

of sales per pe

rson

, com

miss

ions

and

bas

e co

mpen

sati

on

2.32

Any long le

ave in

cide

nts cu

rren

tly underway -name, position, and

reason

2.33

List outstanding job

offers

2.34

Documents that describe the po

lici

es on conducting ref

eren

ce checks fo

r prospective hi

res an

d dr

ug testing, b

ackground

checks, criminal his

tory

checks, and

cre

dit c

hecks fo

r pr

ospe

ctiv

e hi

res or

cur

rent

employees

2.35

Copy of Company employment application an

d standard offer le

tter

2.36

Brief summary of t

he circumstances sur

roun

ding

the termination of employment of any officer wh

ich oc

curr

ed wit

hin the

past

four yea

rs

2.37

Documents that des

crib

e po

lici

es reg

ardi

ng monitoring of

emp

loye

e communication (e

.g. ph

ones

, em

ail,

etc.)

2.38

Summary of em

ploy

ee tur

nove

r ra

tes by

quarter over the la

st two years

2.39

Summary of ex

it in

terv

iewl

ques

tion

nair

e process an

d how dat

a is mai

ntai

ned

2.40

Desc

ript

ion of

standard performance management pr

oces

s an

d sample for

ms (i

.e. g

oal setting, ev

alua

tion

s, et

c.)

2.41

List

of expatriates an

d eu

tend

ed travelers and

det

ails

of c

ommitments (i

.e. LOU

s, wo

rksheets, t

ax service com

mitm

ents

)

2.42

Summary of c

urrent development and

training programs in

place and

copies of

all v

endo

r co

ntra

ct and

license agreements

rela

ted to training

2.43

Any em

ploy

eelc

lien

t sa

tisf

acti

on sur

vey results f

or th

e pa

st two yea

rs

2.44

Summary of

any ce

rtif

icat

ion,

CPU

, or

CPE requirements fo

r sta

ff (t

echnical or other) that wou

ld nee

d to be maintained

2.45

Listing of

geographic locations with headcount. Sp

ecif

y wh

ethe

r Company location or a cl

ient

site

2.46

Sc

hedu

le of all l

ease

d ve

hicl

es ass

igne

d to officers, di

rect

ors or

employees of t

he Company

~~

am-r~j~^~-~- •

~' N

~Tvi

~.. 2I

J :.~ ?

~.

{ y j

1

U

-2~

.~'

~

~

u '

~'_

3.1

Most recent interim financial s

tate

ment

s, al

ong with a statement of t

he assumptions and

accounting procedures use

d in

prep

arin

g su

ch statements

3.2

Copi

es of monthly in

tern

al fi

nancial s

tatements fo

r eac

h of

the prior 2 ye

ars, in

clud

ing Ca

pEx an

d D&A

3.3

Sche

dule

ofnon-recurring ite

ms fo

r last th

ree fi

scal

yea

rs, c

urrent ye

ar-to-date per

iod an

d comparable prior yea

r•to

-dat

epe

riod

3.4

Audi

ted Financial St

atem

ents

for

last 3 yea

rs

3.5

Copy

of Co

mpan

y's long-term financial f

orec

ast including Detailed 201

2-20

14 Budgets

3.6

Acco

unta

nts work papers fo

r the cur

rent

per

iod an

d the pr

ior t

wo years, i

ncluding tax

work papers

3.7

All documents an

d agreements evi

denc

ing bo

rrow

ings

, whe

ther

secured or un

secu

red,

including lo

an and

cre

dit

agre

emen

ts, promissory notes and

other instruments or evidence of indebtedness and

all gua

rant

ees of

the Company

3.8

Corr

espo

nden

ce with creditors or

len

ders

for

the las

t three years, i

ncluding all com

plia

nce reports submitted by

either t

heCompany or its i

ndep

ende

nt pub

lic accountants

3.9

A li

st of all l

oans

or guaranties that t

he Company or an

y su

bsid

iary

has mad

e since its i

nception to any of

fice

r, di

rect

or,

employee, o

r st

ockh

olde

r, and

all doc

umen

tati

on rel

ated

the

reto

3.10

Detailed inf

orma

tion

on ov

erhe

ad and

bur

den ra

tes used on go

vern

ment

contracts, in

cluding hi

stor

ical

rat

e in

form

atio

n,structure of

the rates, claims hi

stor

y, fo

rward bi

d ra

tes,

and

a des

crip

tion

of government acc

ount

ing pr

acti

ces

3.11

Description of

the st

atus

of any DCAA interaction with respect t

o ra

tes

3.12

Copies of In

curr

ed Cos

t Su

bmis

sion

s fo

r la

st th

ree fi

scal

yea

rs

3.13

Sche

dule

of ag

ed accounts re

ceiv

able

(bil

led an

d un

bill

ed) b

y job with exp

lana

tion

s on

col

lect

ion fo

r all i

tems

ove

r $50,000

or 120 day

s

3.14

Copy

of most recent AIP ag

ing

trial balance

3.15

List

s an

d de

scri

ptio

ns of f

ixed

assets

3.16

A det

aile

d inventory

3.17

Detailed des

crip

tion

of the fa

cts an

d ci

rcum

stan

ces co

nsid

ered

in arriving at t

he Com

pany

's war

rant

y an

d pe

rfor

manc

e

rese

rves

3.18

Copies of independent ac

coun

tant

s au

dit management le

tters an

d Company responses for

the las

t three fi

scal

yea

rs

3.19

Revenue an

d Profit breakdowns fo

r each contract (where av

aila

ble)

3.20

Schedule of divisional operating rep

orts

sho

wing

comparison of

actu

al ver

sus budget (rev

enue

, EBIT) performance fo

r la

stfi

scal

year an

d year-to-date per

iod

3.21

Sche

dule

of Co

mpan

y's de

ferr

ed tax

acc

ount

s

3.22

Summary des

crip

tion

and

amo

rtiz

atio

n schedule of all c

apit

aliz

ed intangibles, i

ncluding non

-rec

urri

ng engineering,

capi

tali

zed so

ftwa

re cos

ts, g

oodwill, et

c.

3.23

Sche

dule

of any contingent li

abil

itie

s

3.24

Summary of bad de

bt exp

ense

s fo

r the pa

st th

ree ye

ars an

d the Co

mpan

y's cr

edit

terms and

deb

tor policy and

any potential

work

outs

, write-downs, wr

ite-

offs

that ar

e be

ing contemplated

3.25

Details of

any cap

ital

exp

endi

ture

s in

las

t 3 years and

pro

ject

ed exp

endi

ture

s fo

r this year an

d be

yond

.

3.26

Sche

dule

ofd

epre

ciat

ion/

amor

tiza

tion

policy f

or each ma

jor software, property and

equ

ipme

nt

3.27

Bala

nce Sh

eet Sc

hedu

les as

of the last aud

it date an

d the most recent mo

nth:

(a) B

ank statements and

cash account re

conc

ilia

tion

s(b

) Pre

paid

and

other assets an

d re

conc

ilia

tion

s including a br

eakd

own be

twee

n cu

rren

t an

dnon-

curr

ent as

sets

(c) P

roperly an

d eq

uipm

ent schedule with re

conc

ilia

tion

s(d

) Int

angi

bles

with am

orti

zati

on schedules alo

ng with mo

st recent im

pair

ment

test

(e) C

apitalized sof

twar

e sh

owin

g additions an

d am

orti

zati

on byp

rodu

ct

3.28

~ Schedule

-and

description of all o

ff-balance sheet li

abil

itie

s of t

he Company

3.29 ~

Schedule describing order ba

cklo

g and

pipe

line

by cl

ient

and

by business seg

ment

3.30

~ Copies of internal str

ateg

ic reports or bu

sine

ss plans for

the last t

hree

fisc

al yea

rs

3.31

~ Copies of all i

nter

est ra

te or cu

rren

cy swap agr

eeme

nts

3.32

Sc

hedu

le of all ma

rket

able

securities held by the Company tog

ethe

r with purchase pr

ice an

d ca

rryi

ng val

ue of s

uch

securities

3.33

Schedule of all d

ivid

ends

and

dis

trib

utio

ns mad

e to

stockholders si

nce inception an

d a copy of any di

vide

nd policy. State

whet

her the di

vide

nds we

re pai

d in

cash or

sto

ck.

List

of the am

ount

s) of any div

iden

ds in ar

rear

s

3.34

Copies of all a

ccou

ntin

g pr

oced

ures

and

manuals (e

.g, r

even

ue recognition, bi

llin

g pr

oced

ure,

mon

itor

ing of

acc

ount

sre

ceiv

able

, capitalization po

lici

es, b

ank ac

coun

t st

ruct

ure,

pur

chas

esle

xpen

se control, bu

dget

ing an

d monitoring process,

accounting sys

tems

used, go

odwill, i

nsta

llme

nt sa

les,

research and

development costs, s

oftw

are development costs, et

c.)

3.35

~ Em

ploy

ee Utilization Rep

ort

3.36

Details of

any cha

nges

in ac

coun

tant

s, ac

counting policies, principles an

d procedures over the la

st two fi

scal

years or any

such

changes

that ar

e pr

opos

ed.

3.37

Sc

hedu

le of all s

ecur

ity in

tere

sts in

assets of

the Company alo

ng with co

pies

of security agr

eeme

nts an

d financing

statements.

4.1

All ma

rket

stud

ies,

feasibility s

tudi

es, a

naly

ses,

and

sim

ilar

reports con

cern

ing the Company pre

pare

d wi

thin

the las

t fiv

eye

ars.

4.2

All marketing an

d other descriptive br

ochu

res re

gard

ing th

e Company pre

pare

d by

the Company wit

hin th

e last fi

ve yea

rs.

4.3

All pr

ess re

leas

es iss

ued by

the Company during the last fi

ve years, a

nd any pre

ss clippings wit

h respect to

the Company, if

avai

labl

e.

4.4

~ ~:.

1' 5.

1

Copi

es of all speeches de

live

red by

any officer or di

rect

or of th

e Company to tr

ade as

soci

atio

ns, e

tc.

~ _

4

s

3 ~.

.rQ

f ;7

,r,

Y`:'+

.,~'

r , ~;

z

A ~

~ x

~ 7 N 'f

r 'r

~

1 '~

~-

r z..

~_v ~ ~

x

~

r r-

:-.

: t4d

.~ o

~ t~.f

~ 1~

J

A ~

'~ ~

+ ~sy

.,~

~ ,scam r

c"__"'.

S'.._

_..

._

~ Federalµin

come

ta~c

returns fi

led du

ring

the

last t

hree

calendar ye

ars

5.2

State an

d local income tax

ret

urns

file

d du

ring

the last t

hree

calendar ye

ars

5.3

Federal an

d state pa

yrol

l ta

u re

turn

s fi

led du

ring

the last t

hree

calendar ye

ars

5.4

Prop

erty

tax ret

urns

file

d during the last t

hree

calendar ye

ars

5.5

All gross re

ceip

ts, bu

sine

ss lic

ense

and

lor bu

sine

ss and

occ

upat

ion taz re

turn

s fi

led in the

last t

hree

calendar ye

ars

5.6

State sales an

d use ta

u returns fi

led du

ring

the

last t

hree

calendar ye

ars

5.7

Mate

rial

rep

orts

file

d an

d significant c

orre

spon

denc

e, in

cluding any se

ttle

ment

doc

umen

ts, with any state or fe

dera

lregulatory agencies du

ring

the last t

hree

yea

rs

5.8

Copi

es of th

e Ce

rtif

icat

es of Good Standing an

d Ta

~c Sta

tus Reports for all s

tate

s an

dlor

foreign co

untr

ies where the

Company is

qualified to do business

5.9

Copi

es of all t

a~c s

haring and

othertax related ag

reem

ents

5.10

Schedule des

crib

ing any on

goin

g tax di

sput

es, t

ogether wi

th copies of revenue age

nts'

repo

rts,

cor

resp

onde

nce,

etc., w

ith

respect t

o any pending fe

dera

l, st

ate, provincial or

sim

ilar

tax

proceedings

6.1

All material sal

e, age

ncy,

dist

ribu

tion

, dealer, su

pply, requirements or ad

vert

isin

g co

ntra

cts to

whi

ch the Company is

or was

a pa

rty during the last f

our years

6.2

All j

oint ven

ture

agr

eeme

nts,

partnership agreements, operating ag

reem

ents

(for lim

ited

liability companies) a

ndcommission agr

eeme

nts to

whi

ch the Company is

a par

ty

6.3

All s

trat

egic

all

ianc

e an

d teaming ag

reem

ents

and

all letters of in

tere

st or letters of

intent describing any pr

opos

edtr

ansa

ctio

ns with ve

ndor

s, cu

stomers or any other th

ird parties

6.4

All li

cens

ing agreements (t

o wh

ich the company is

a par

ty as licensor or li

cens

ee),

fran

chis

es and

conditional sal

esco

ntra

cts

6.5

File

histories of all t

he Company-ow

ned pa

tent

s, in

cluding issuing co

untr

y, pat

ent nu

mber

, tit

le of invention, in

vent

or and

date

issued

6.6

Patent applications pe

ndin

g an

d potentially patentable technology, in

cluding co

untr

y in

whi

ch app

lica

tion

is made,

application number, t

itle of invention, ap

plic

ant,

date

of ap

plic

atio

n an

d in

vent

or

6.7

With respect to

tra

dema

rks,

trade na

mes an

d logos, a li

st of t

he product or service fo

r wh

ich the business mark is

used,

coun

trie

s in

whi

ch such mark is used

6.8

With respect to

cop

yrig

hts,

coun

trie

s where ma

teri

al has bee

n distributed, ex

istence an

d registration number of

any fo

rmal

copyright re

gist

rati

ons

6.9

With respect to trade se

cret

s an

d kn

ow-h

ow, a

des

crip

tion

of kn

own di

stri

buti

ons outside the Company and

all measures

taken to

pro

tect

their co

nfid

enti

alit

y orsecrecy

6.10

All agreements for

the acquisition, a

ssig

nmen

t, tr

ansf

er, s

ale,

license or

use of pa

tent

s, tr

ademarks, c

opyr

ight

s, tr

ade

name

s, lo

gos,

trade secrets, patent ap

plic

atio

ns, technology an

d so

ftwa

re

6.11

All consulting agr

eeme

nts an

d nondisclosure ag

reem

ents

relevant t

o protection of t

he Com

pany

's intellectual property

righ

ts

6.12

Hist

ory of any patent or

trademark infringement claims and

a des

crip

tion

of t

he resolution

6.13

All Company policies an

d pr

oced

ures

related to pa

tent

s, co

pyri

ghts

, trade secrets, tra

dema

rks an

d/or

tradenames

6.14

List of URLs own

ed by the Company and

evidence of own

ersh

ip.

6.15

All s

ignificant documents rel

atin

g to

any maj

or sto

ck or asset acquisitions or di

spos

itio

ns wit

hin the la

st th

ree ye

ars

6.16

Desc

ript

ions

and

pro

ject

ions

of any outstanding un

matu

red ea

rn-o

ut payments

6.17

All co

ntra

cts or agreements with the Com

pany

's dir

ecto

rs, o

fficers or

shareholders or any entity in

whi

ch suc

h pe

rson

s ha

vemore than a 5% equity in

tere

st

6.18

Standard forms of purchase ord

ers an

d co

ntra

cts

6.19

Copies of

all t

rain

ing materials pr

ovid

ed or so

ld to de

aler

s (wh

ethe

r fo

r technical or mar

keti

ng sup

port

)

6.20

Schedule of i

ntra

-com

pany

rev

enue

s or

cha

rges

suc

h as

management fees, i

f any

6.21

Sche

dule

of all c

onsents or app

rova

ls req

uire

d from, a

nd all not

ices

and

fil

ings

req

uire

d to

be ma

de to or

with any third party

in connection with the pro

pose

d tr

ansa

ctio

n

6.22

All ag

reem

ents

related to co

mput

er hardware, so

ftware, ma

inte

nanc

e, processing, so

urce cod

e es

crow

, facilities

mana

geme

nt, t

ime-

shar

ing,

disa

ster

recovery an

d describe any terms relating to

con

tinu

ing obligations, tr

ansfer res

tric

tion

sor

termination cos

ts

6.23

All e

quip

ment

lea

ses an

d any re

late

d documents

6.24 (Co

pies

of t

he tra

nsfe

r pricing po

lici

es used by

the Company fo

r transactions with affiliates

6.25

Li

st of all c

ontr

acts

or co

mmit

ment

s pu

rsua

nt to

whi

ch the Company is

obl

igat

ed to pe

rfor

m under wh

ich a default has

occu

rred

or is

cla

imed

to ha

ve occ

urre

d

6.26

~ All co

ntra

cts wh

ich the Company is

a party or by

whi

ch the par

ty Company is

bound, wh

ich ar

e su

bjec

t to re

nego

tiat

ions

6.27

Any other mat

eria

l co

ntra

cts an

d ag

reem

ents

involving the Company not otherwise covered by the fo

rego

ing it

ems,

including without limitation agreements with cli

ents

and

customers

7.1

A schedule of

all real est

ate properties own

ed or leased (or

ove

r wh

ich the Company enj

oys rights) alo

ng with co

pies

of t

itle

deeds (e.g., fr

eeho

lds,

leas

es or tenancy agreements) a

nd details of t

he loc

atio

n of

the original documents rel

atin

g thereto.

7.2

A schedule of

all personal pro

pert

y ow

ned or

leased along with copies of

all a

gree

ment

s fo

r leased equ

ipme

nt or ot

her

personal property (

including any li

ens or indebtedness on personal property)

7.3

List

s an

d de

scri

ptio

ns of all d

ocuments relating to

real es

tate

financing, i

nclu

ding

: identity of mo

rtga

gee,

term

, original

principal am

ount

, unpaid principal bal

ance

, int

eres

t ra

te, e

tc.

7.4

Copies of all bills a

nd inv

oice

s fo

r the past th

ree years re

lati

ng to ex

pend

itur

es for

uti

liti

es, i

nsur

ance

, pr

oper

tymaintenance, jani

tori

al ser

vice

s as

well as estimates of s

uch co

sts an

d expenses fo

r the nex

t 3 yea

rs

7.5

~ Copies of any le

ases

in dr

aft for

m (o

r letters of in

tent) u

nder

negotiation

7.6

~ Fl

oor plans of

buildings own

ed or le

ased

by the Company

7.7

~ Copies of title i

nsur

ance

or title o

pinions an

d le

ases

ind

icat

ed in #7

.1 above

7.8

~ Copies of re

al est

ate t

ax bills for

real estate owned or leased by the Company

7.9

~ Copies of any recent val

uati

ons by

independent appraisers

7.10

~ Copies of all pe

rmit

s, li

cens

es and

aut

hori

zati

ons by

loc

atio

n held by the Company (e

.g., EPA generator num

bers

, etc.)

7.11

Copies of all c

orrespondence with any government authority re

gard

ing co

mpli

ance

with en

viro

nmen

tal or sa

fety

laws

/reg

ulat

ions

(e.g., OSHA or st

ate EPA inspections or in

quir

ies)

in past 3 years

7.12

A schedule sh

owin

g depreciation or am

orti

zati

on of le

aseh

old im

prov

emen

ts with respect t

o all f

acil

itie

s, whe

ther

leased or

owned

7.13

~ Copies of uniform hazardous wa

ste ma

nife

sts fr

om 1984 to

pre

sent

7.14

A li

st and

des

crip

tion

of all t

he Company fa

cili

ties

at wh

ich the company or

its predecessors dis

pose

d of

hazardous

subs

tanc

es or petroleum products

7.15

Copies of all policies and

pro

cedu

res re

lati

ng to en

viro

nmen

tal an

d safety matters, i

ncluding environmental, s

oils and

oth

eren

gine

erin

g re

port

s, et

c. and

a list o

f any kno

wn env

iron

ment

al li

abil

itie

s

7.16

List of any outstanding claims by employees, cu

stomers or reg

ulat

ory authorities re

late

d to

env

iron

ment

al com

plia

nce or

safety

7.17

List

of t

he Com

pany

's SIC

codes and

cop

ies of

the OSHA For

m 20

0 "Log and

Summary of Oc

cupa

tion

al Injuries an

dIl

lnes

ses"

for each of t

he pre

viou

s 5 years

7.18

Copies of any other re

leva

nt environmental, health or safety documents or correspondence

8.1

(i) A des

crip

tion

of any self ins

uran

ce pro

gram

or fe

atur

e; (i

i) a cla

im los

s history of

the past fo

ur yea

rs and

specify that t

heli

st sho

uld include claimsflosses that were in

sure

d, se

lf-i

nsur

ed, and

uninsured; a

nd (i

ii) the name and

pho

ne number of

the

Comp

any`

s in

sura

nce br

oker

s) an

d the name and

pho

ne number of

the person at t

he Company responsible for

the Ris

kMa

nage

ment

func

tion

.

8.2

A schedule identifying

all i

nsur

ance

policies that hav

e been in effect during the pa

st fi

ve years. Th

e schedule sho

uld

include the fo

llow

ing:

coverage ty

pe (e

.g., general li

ability, wor

kers

' com

pens

atio

n, et

c.); in

surer; policy nu

mber

; policy

period; l

imit

s of

cov

erag

e; de

ductible; a

nd pre

mium

. Copies of all c

urrent pol

icie

s.

8.3

A sch

edul

e identifying

all c

laims an

d losses that we

re incurred during the past f

ive years, in

cluding claims that we

reinsured, se

lf-i

nsur

ed, and

un-insured.

8.4

A schedule identifying

all s

tand

ard contract terms and

conditions that hav

e be

en in effect during the pa

st years including

inde

mnif

icat

ion pr

ovis

ions

and

ins

uran

ce requirements.

8.5

A sch

edul

e de

scri

bing

the presence of any ben

efit

pla

ns sub

ject

to ERISA rules.

8.6

A schedule showing

detail on wo

rker

s' co

mpen

sati

on cov

erag

e an

d premium calculations including bre

akdo

wn of s

tates,

class co

des,

payroll am

ount

s an

d ex

peri

ence

mods.

8.7

Copies of in

sura

nce in

quir

ies an

d re

view

s received by the Company.

8.8

Provide co

pies

of any reports or

cor

resp

onde

nce co

ncer

ning

the ade

quac

y of

the Co

mpan

y's in

sura

nce coverage.

x L~

~~~ }

t~~~ ~'~~0.

~7h

Ate

, ~.

V ~-? 3,S

_f7,s~.:+.

~ ,~~t.

t

1

~ ~P-

, L

F .,

k..'Y

t;

4

'ft~

a_

_

_

19.

1 A li

st pre

pare

d by

counsel fo

r the Company sum

mari

zing

all pen

ding

or th

reat

ened

litigation or

administrative or reg

ulat

ory

proc

eedi

ngs or

inv

esti

gati

ons involving the Company and

all mat

eria

l Company reports analyzing or discussing suc

h

liti

gati

on, p

roceeding or

investigation over the last fi

ve years.

9.2

All ma

teri

al consents, dec

rees

, judgments, or

ders

, set

tlem

ent ag

reem

ents

and

oth

er agreements to

whi

ch the Company is

apa

rty or

is bound, requiring or prohibiting any ac

tivi

ty.

9.3

Copies of t

he Com

pany

's attorneys' l

itigation letters t

o au

dito

rs for

the preceding five years.

9.4

List of all c

laim

s, proceedings, l

itigation, pen

ding

or th

reat

ened

aga

inst

the Company that ha

ve bee

n submitted to

the

insu

ranc

e carrier an

d the current s

tatus of

each su

ch claim.

10.1

~ Copy of IT

organization charts, r

espo

nsib

ilit

ies an

d fu

ncti

ons f

or current st

aff.

Is IT sta

ff ce

ntra

lize

d or dec

entr

aliz

ed?

10.2 ~

Li

st of hardware, s

oftw

are an

d email system

10.3

~ Ha

rdwa

re and

sof

twar

e maintenance contracts an

d open service contracts

10.4 ~

Schedule of a

ny cl

assified systems

10.5

~ List of platforms su

ppor

ted

10.6 ~

Description of

configuration of

LAN and

WAN and

description of f

irewall i

mple

ment

atio

n

11.1

Deta

ils of

any st

rate

gic review, r

estr

uctu

ring

, reo

rgan

izat

ion or

major op

erat

iona

l ch

ange

s undertaken in the last fi

ve fi

scal

year

s no

t al

read

y pr

ovid

ed

11.2

Reports to and

cor

resp

onde

nce with all gov

ernm

ent ag

enci

es not alr

eady

pro

vide

d

11.3

Copi

es of all l

icenses or

permits not otherwise provided (i

nclu

ding

loc

al business licenses) r

equired fo

r the Com

pany

'sbu

sins

ess

11.4

All a

ssum

ed, f

icti

tiou

s and

oth

er bus

ines

s na

mes under which th

e Company is conducting business, o

r ha

s conducted

business wit

hin th

e last th

ree years, th

e st

ates

(or counties or ot

her po

liti

cal s

ubdi

visi

ons)

in which, a

nd the dat

es whe

n,those na

mes were registered, re

cord

ed, f

iled

or otherwise pr

otec

ted as

req

uire

d by

, or desirable un

der,

relevant law

.

11.5

A li

st of all pe

rson

s holding tax or

oth

er pow

ers of

attorney exe

cute

d by th

e Co

mpan

y an

d the purposes fo

r which th

ose

powe

rs were gi

ven.

Cop

ies of

all r

elev

ant d

ocum

ents

pursuant to which the

pow

ers of

atto

rney

were gr

ante

d.

11.6

Schedule of all s

oftw

are as

sets

dev

elop

ed by the Company or whose intellectual pro

pert

y is

held by

the Company. For each

soft

ware

asset, d

escr

ibe its purpose, cu

rrent t

echn

olog

y pl

atfo

rm, a

ny th

ird pa

rty t

echn

olog

ies up

on whi

ch it

rel

ies an

d the

prop

osed

fut

ure development pa

th.

11.7

List

of ma

jor competitors

11.8

Prod

uct development timeline, b

ypro

duct

, including pla

nned

expenses, co

mpletion dat

es, a

nd resource al

loca

tion

s.

11.9

If the Company imports mer

chan

dise

or materials f

rom outside the Un

ited

States, th

en please provide th

e annual dollar v

alue

of suc

h imports an

d co

pies

of any import com

plia

nce manual or si

mila

r pu

blic

atio

n, and

any

related lic

ense

s, permits,

comp

lian

ce tests, e

tc. a

nd other mat

eria

l re

late

d in

form

atio

n.

11.1

0If

the Company exp

orts

mer

chan

dise

or materials outside the Un

ited

Sta

tes,

then please pr

ovid

e the annual dollar value of

such exp

orts

and

cop

ies of

any exp

ort co

mpli

ance

manual or

simi

lar pu

blic

atio

n, and

any related lic

ense

s, per

mits

,co

mpli

ance

test

s, et

c. and

other mat

eria

l related in

form

atio

n.

11.1

1Li

st of all s

igni

fica

nt su

ppli

ers an

d customers of

the Co

mpan

y, wi

th an in

dica

tion

of t

he amount pa

id to each during the la

stfu

ll fi

scal

yea

r an

d the current year to da

te and

an in

dica

tion

of t

he number an

d ac

cept

abil

ity of

alternative so

urce

s of

supp

ly.

11.1

2An

y other documents or inf

orma

tion

which, i

n your ju

dgme

nt, a

re sig

nifi

cant

with respect t

o any po

rtio

n of

the business or

whic

h should be co

nsid

ered

and

reviewed in

making di

sclo

sure

s re

gard

ing the bu

sine

ss and

financial condition to

ros

ective investors.