COMMON STOCK SCORECARD

Name of Offering                                             Names of Officers:

Description:

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1. Company/Officers     ____          5. History of Trading      ____

Experience : # of yrs. in bus.           a. Low vol/bid-ask     (5 pts)

                                         b. Stabalizing         (4 pts)

                                         c. Mild volatility .   (3 pts)

    a. More than 20 yrs.   (5 pts)       d. Mid-hi vol/wd.spd.  (2 pts)

    b. 15 -19 years        (4 pts)       e. Little or no trading(1 pts)

    c. 10 -14 years        (3 pts)

    d. 6 - 9 years         (2 pts)

    e. 2 - 5 years         (1 pts)

2. Net Worth Consideration:____       6. Leverage:                  ____

(neg. debt to worth ratio = 1) 

    a. $15,000,000+        (5 pts)        a. Co. is debt free    (5 pts)

    b. $10 - $15,000,000   (4 pts)        b. Positive worth/debt (4 pts)

    c. $5 - $10,000,000    (3 pts)        c. Mild debt- 1-1 d/w  (3 pts)

    d. $2.5 - $5,000,000   (2 pts)        d. Mod-Hi Dt-Neg.d/w   (2 pts)

    e. $1 - 2,500,000      (1 pts)        e. Astro.dt. Co. buried(1 pts)

3. History of Earnings  ____          7. Financing Terms: ____

(Accumm. Deficit, Deficit Working Cap.) 

    a. Oper. gains from incept.  (5 pts)  a. Co. has no fin’g    (5 pts)

    b. Oper. gains-most rec. yr. (4 pts)  b. Co.has lge. dt cov. (4 pts)

    c. Break-even - curr. yr.    (3 pts)  c. Cash flow = obligs  (3 pts)

    d. Oper. Losses - curr. Yrs  (2 pts)  d. Obligs are strain.  (2 pts)

    e. Oper. losses from incep.  (1 pts)  e. Co is underwater    (1 pts)

4. Regulation/Litigation ____         8. Percentage of Supply/demand-Products:___

    a. No affect/none pending (5 pts)     a. 90%

    b. Most not affecting     (4 pts)     b. 95%

    c. Few affecting/pending  (3 prs)     c. 100%

    d. More than few affect.  (2 pts)     d. 110%  

    e. Many affecting/pending (1 pts)     e. 120%

9. Assumptions:_____

    a. Very conservative plan with safeguards       (5 pts)

    b. Semi-conservative plan with many 

       safeguards                                   (4 pts)

    c. Semi-aggressive plan w/ safeguards           (3 pts)

    d. Aggressive plan with few safeguards          (2 pts)

    e. Aggressive plan with virtually no safe-

       guards                                       (1 pts)

10. Risk Factors:)____

(% of Normal Risk)

    a. 80%             (5 pts)

    b. 90%             (4 pts)

    c. 100%            (3 pts)

    d. 110%            (2 pts)

    e. 120%            (1 pts)

TOTAL POINTS _____

Note: A minimum of 35 points (70%) is required for due diligence consideration. Further, a score of one (1) in any one category may cause the issue to be rejected.

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                                                       SCORECARDS

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