Jim Gilreath, Gilreath Consultantcy, Skin-in-the-Game-Hiring

Confidential Bio on James Shell, Candidate for Fantasy Entertainment Investor President & CEO Search edited by Jim Gilreath.

Early Background:
Native of Hartford, Connecticut, I grew up the oldest of 4 children-with 2 brothers, and 2 sisters. Raised in a caring, loving, and disciplined home by a mother working as a homemaker and insurance administrator at Hartford Hospital, and a father who was a contractor/home builder, and driving force in my earlier development.

Encouraged to achieve high academic standards, and participate in areas of interest at all levels by my parents, I developed a strong foundation of accomplishments at an early age. During high school I lettered all 4 years in baseball and soccer-named to All-Conference teams in both sports and captained 2 State Championship teams. President of my junior and senior class, I was elected to the National Honor society and graduated 6^th in a class of 500. In addition to working 10 to 15 hours per week, my extra curricula activities included the Key Club, Choir, and the Catholic Youth Organization.

College, University, Military and Certifications:

Received a US Congressional appointment to The United States Military Academy, also accepted to Cornell and Union College. I attended West Point my plebe/freshman year where I was on the Academy Freshman Baseball and Soccer teams, as well as, the Academy Choir. Actively recruited by Texas A&M University for baseball, I transferred to Texas A&M University Corp of Cadets, with a full scholarship commencing my sophomore year-held the rank of Captain, Battalion Scholastic Officer, and member of the student senate. Graduated with a Bachelor Degree with a major in Mathematics and minor in Industrial Engineering, awarded Outstanding Military Graduate certificate, and commissioned as a 2^nd Lieutenant USAR, Air Defense Artillery.

Serving as a platoon leader, station at Fort Bliss, active duty obligation curtailed with the conclusion of the Viet Nam conflict, total 10 years military services, with 8 years spent in the United States Army Reserve. Commands in the USAR included: Company Commander Basic Training Unit, Battalion Staff Officer, and Brigade Operations Officer. Transferred to inactive reserve status at the rank of Captain.

Attended the University of Connecticut, graduate school while employed at Hubbell’s Wiring Device Division. Received a Masters in Science, Engineering Management with a core focus on the design of the enterprise. As part of the Hubbell’s Key Management Program, received general management certification from Penn State University. Also, as part of Hawker Siddley’s Managing Directors Team & attended Canfield School on Management, London, England for managing directors studies.

Entry Level Work & Early Work History:

06/71 to 12/73: Industrial Engineer/Sr. Industrial Engineer

Audio Trak, Inc., subsidiary of Audio Systems, Inc. Naugatuck, Connecticut.

Subsequent to my college internship, I was afforded the opportunity to join Steve Graham, Plant Manager, and early mentor, as a team member for conversion of a former school, in a native Indian community, of Bostwick, South Carolina into a manufacturing facility for the production of cassette, 8-track, reel-to-reel tapes. The attraction of the assignment, besides working for Steve, was the opportunity to have direct and sole responsibilities for all plant Engineering, Process Control, Quality Control, and some supervision in a start-up situation. I performed a variety of functions in the development and/or modification of production machines, processes, methods, and tooling required for manufacturing of blank cartridges and cassettes. The hands on opportunity, where I saw first hand mistakes, and put theory into practice has served me throughout my career. The goal when assigned was to get the operation up and running in 12 months, and achieve production rates on 3 shifts. Both objectives were met with a 25% reduction in direct labor costs.

As a result of that assignment, I was promoted to Sr. Industrial Engineer, and transferred to Corporate Engineering where I had multi-plant responsibilities. Project assignments included packaging, equipment modifications, and cost reduction programs. Further responsible for development of standard cost, plant layout, economic analysis, and plant variances. Various assignments accounted for a 60% productivity increase in one area, a 25% machine capacity increase through method improvements, and a $40,000 reduction in packaging costs.

12/73 to 07/78: Senior Manufacturing Engineer/Supervisor of Manufacturing Engineering.

Engineering Dynamics, Inc., Wiring Devices Division, Danbury Connecticut. Headquarters and maintain production facilities with 1,000 employees and $125MM annual sales of electrical plugs, switches, and receptacles.

Wanting to broaden my manufacturing expertise, start my advance degree, and join a major fortune 500 corporations, I joined ED’’s Wiring Devices Division. Reporting to the Engineering Manager, inside a state of the arts technical center surrounded with accomplished design engineers, tool designers, and technicians, I had project responsibilities for new product development, justification and acquisition of capital equipment, and cost reduction programs. Product line responsibilities included metal fabrication, metal finishing, plastic molding, various secondary operations, and final/automated assembly methods. In a competitive, highly motivated team environment, in the space of two years I led the transfer of 3 major product lines to Engineering Dynamics, Inc.’s Almont, SC facility; purchased and installed $2MM worth of automated equipment, and implemented $500K in cost reductions.

I was promoted in June 1975 to supervisor of the manufacturing engineering department, where I had the opportunity to reorganize, hire, develop, and lead six senior M.E., three tool designers, a plant engineering manager, and a staff to 15 tool and maintenance techs. During this period I had the opportunity to develop a New Product Management System that I subsequently implemented throughout my career, introduce integrated machining centers, initiate World Class Manufacturing concepts.

Chronological Job Titles During Later Career:

07/78 to 08/82: Manufacturing Manager

Engineering Dynamics, Inc.’s Kellogg Division, manufacturing mechanical holding devices and connectors, Bridgeport, Connecticut. Promoted to Engineering Dynamics’ Division staff level, and youngest key employee in E.D., reported to the VP/GM of a business that had capacity constraints, no manufacturing systems, or aggressive product/process improvements. Operated in a business that grew in sales from $10MM to $15MM during this time frame. Led five middle managers and 130 hourly employees in the production, material control, manufacturing engineering, and quality control. Implemented $2.7MM of capital to include a 22k sq. ft. expansion. Introduced automated assembly systems that maintained labor base at a 30% real growth rate. Implemented an integrated MRP system eliminated material variances, reduced inventory to 2 month on hand, and improved on time delivery to 90% fill rate.

08/82 to 08/85: Manufacturing Manager

Engineering Dynamics’ Industrial Controls Division, $20MM manufacturer of pendant stations, power resistors, timers, and engineered controls primarily for the crane control markets, Columbus, Ohio. At the request of Engineering Dynamics, Inc.’s Chairman, and following Ed Cormier, the recent promoted Kellogg VP/GM, I was promoted and relocated my family to Ohio to head-up manufacturing operations of a heavy manufacturing, union organized, vertical integrated plant. I led a team of 5 middle managers, and 220 hourly employees in all manufacturing operations that included Production, Production Control, Purchasing, Manufacturing Engineering, and Quality Control. Operating in a constant reduction in force mode due to the collapse of the Steel Industry, our primary market, successfully negotiated three-year labor agreement to end volatile 13-week strike. Implemented a Creative Cost Improvement Program, based on gain sharing, that realized $300,000 cost savings. Installed a MAPICS System the resulted in $750,000 of savings in the form of variances, raw material reductions, and work in process inventory.

08/85 to 02/88: Director of Marketing and Sales

Engineering Dynamics, Inc.’s Industrial Controls-Appreciating the need to refocus the business, and wanting additional functional responsibilities in terms of future P&L authority, I accepted the promotion to the Division’s Director of Marketing and Sales. Given the task to fix the DC controls business segment that served the large, integrated steel, crane control market that was falling apart due to shift in technologies, foreign competition, and competitive consolidations, I led a total revamp of strategic thinking; developed and implemented AC motor control product applications for such markets as portal cranes, bridge control, paper mills, and remote & radio control markets. Managed Marketing Services Manager, National Sales Manager, applications engineering, and 2 regional sales offices, with total team of 16. Introduced the concept of value added engineering that include braking and cable systems, launched 3 new product platforms, and 3 derivative products that achieved organic sales growth of 20%. Grew sales overall 12% over 2 years in a flat, mature market. Reason for leaving: great career opportunity in NH returning us to the East Coast.

02/88 to 06/92: Rheostat Manufacturing Company, Inc. subsidiary of Acme United Sensors & Controls Group, a $350MM segment of $600MM ACME UNITED, which was held by $2.2BB Hanson Industries, PLC. Rheostat Manufacturing Company, headquartered in Concord, NH, a manufacturer of electronic passive components, the core products being potentiometers serving markets/customer base that included test & measurement, automotive, audio, medical, and military, was acquired by ACME UNITED in 1987 as part of a Sensors and Control acquisition strategy. Wanting to have complete P&L responsibility, and not willing to wait for Engineering Dynamics’ timetable, I was recruited by Dave Barnett, the Group CEO to join Rheostat with the prospect of P&L responsibility, within 2 years, as the President of Rheostat retired.

02/88 to 02/89: Vice President of Marketing and Sales,

Reporting to Ron Williams, the President, of what at this juncture was an $18MM company; led a team of 15 comprised of National Sales Manager, OEM Sales Manager, Customer Service Manager, and Application Engineering; sales through 100 independent manufacturers reps and national distribution network. Developed marketing & sales infrastructure that include product management and regional sales management, and built vision where no strategic business plan had ever previously existed and where the leadership position had sat vacant for 2 years prior. Developed 3-year marketing strategy which resulted in 20% additional market share capture; introduced Product Marketing concept-restructuring manufacturing engineering into Product Management/ownership/accountability function, incorporating the Engineering Dynamics model; launched 2 new major product platforms & grew sales from $18MM to $21MM during a two year timeframe.

02/89 to 02/90: Vice President/General Manager,

Continuing to report to Ron Williams, during his transition, directly responsible for marketing/product development, sales, manufacturing operations for 4 sites, quality, finance, and human resources; developed & implemented 3-year strategic business plan that drove the company from a panel controls manufacturer to a quality producer of digital input devices & sensors. Built & developed senior management team with keen focus upon growth, driving on innovative product development/market proliferation, & infusion of World Class Manufacturing. Advocated plant consolidations-closed 2 plants in Maine. Negotiated 3-year labor contract with IBEW, achieving successful contract inclusive of job consolidations & site closures.

02/90 to 06/92: President

Reporting to Acme United Sensors and Controls CEO, as President, grew the business from $2MM to $30MM; consolidated operations, built and leverage Mexico production, and reduced headcount from 600 to 450 employees; 3 US manufacturing sites & new plant in Mexico. Led VP-Marketing & Sales, VP-Engineering, VP-Operations, VP/Controller, Director of Human Resources. Repositioned the business; developed 2 new major internal product platforms & pruned under performing/redundant products internally from acquisition. Implemented acquisition strategy and successfully acquired/integrated $5MM Alsco-Barnes Variable Resistor business based in Dallas, Texas and manufacturing facilities in Joppa, Mexico. Increased profits from 10% to 15% ROS, and doubled RONA during the two year timeframe. {Parent Hanson Industries, PLC acquired in a hostile take over by British Tire & Rubber in 1992; BTR directed Rheostat’s east coast operations and headquarter to be closed and relocated to El Paso, Texas. I carried out the initial shutdown of the Concord facilities, and consolidation planning, but unwilling to relocate my family to the El Paso area, concluded that opportunity elsewhere would prove more effective, though BTR offered opportunity remained.

06/92 to 03/96: President

Odell Grange, Inc., a subsidiary of Odell Industries, Inc., Rockford, IL. Reporting to Bill Arnold, CEO of publicly-held $400MM Odell Industries; recruited for the key responsibility of restructuring the business after acquisition-complete P&L responsibility for at this juncture was a $15MM business comprised of OttoSwitch and the recent acquired Standard Grange two US facilities with 275 employees, manufacturing rotary switches for test/measurement, automotive, avionics, military, medical applications; customer base included Defense Contractors, General Dynamics, ITT and Motorola, as well as DOD. Built and led team comprised of Vice President Marketing and Sales, VP Operations, VP Engineering, VP Finance, and Director of HR; developed and implemented a 3-year business strategy that repositioned a traditional rotary switch component business into digital electronics and value engineering. Captured $7MM in organic revenue growth; built new state of the arts 40K square foot production facilities in Jalapeno, Mexico and introduced World Class Manufacturing throughout the business. Met initial challenge to grow the business 10% yearly & attain 15% ROS by 1995. In 3 years, sales grew from $15MM to $21MM, a 40% increase, and earnings grew from $1.5MM/9.8% ROS to $3.4MM/ 15.4% ROS. Approached in 1995 by Max Smith, owner of OMC Manufacturing to join him as the President and COO, with the opportunity to acquire the company upon his retirement, and in face of significant stock options with Odell Industries, I decided to join OMC Manufacturing Company in the spring of 1996.}

03/96 to 02/98: President and Chief Operating Officer

Reporting to Max Smith, owner and CEO, and the Board of Directors, of a $17MM, $1.9MM EBIT, 300 employee business located in Chicago, IL-manufacturer of passive components and electromechanical controls, a market leader in power resistor sold into the motor control, power conversion, military and transportation markets. Major customers included military contractors Raytheon, General Dynamics, Pratt Whitney, and GE as well as, DOD. With the Board approval and guidance, developed and implement a 5-year strategic plan that recaptured OMC’s markets, employed OMC’s vertical manufacturing and technology base for aggressive internal new product development, leveraged OMC’s print position and distribution network for branding, and looked to competitive acquisition. Recruited, built, and led a team comprised of Directors of Sales, Engineering, Operations, Finance, Quality, and Human Resources that resulted in the launch of 3 new product platforms, inclusion of branded products through Distribution, and the acquisition and consolidation of Marcor-Tate, a major competitor.

In terms of Max Smith’s succession planning, in 1996, he and the Board placed a $20MM value on the business, that represented an unrealistic 10 times earning expectation. Within 18 months the business achieved a Sales level of $24MM and an EBIT run rate of $4MM; Vishnu, Inc. a $1.5B, publicly held, world supplier of passive components offered Max $28MM for the business. As part of my employment, I had a Right of First Refusal, which Vishnu offered to buyout at $500K, but I exercised my option instead, and began the process of raising the capital to match Vishnu’s offer. During the period of negotiations in 1997 between Vishnu and Max Smith, I retained Chicago National Bank, developed an investment memorandum based on my 5-year strategic plan, and began the process of seeking an Equity partner. As a result of 20 different presentations, I retained Hayward Partners, the acquisition arm of Hull Industries, a $1.4B conglomerate of companies owned privately by Matthew Hull, as my equity partner. Due to the earning run rate of the business in 1997, and Vishnu’s tactics, the offer price for the business rose to $35MM; the Smith/Vishay negotiations broke down due to a disagreement on payout and tax issues, and in February 1998 the business was sold to myself, Hayward Partners and Hull Industries. The net results was that I had led a management buyout and raised $35MM financing in mid-cap market to buy OMC, I had a 7.75 interest in the new entity, Hull-OMC, LLC, and Max Smith exited with and increased cash out value from $20MM to $35MM.

03/98 to 03/2003: President and Chief Executive Officer

Reporting to the Board of Directors, the newly formed Hull-OMC, LLC a $24MM business, had business goals to grow 10% annually, and capture EBITDA level of 27% within 5 years and prepare for the eventual sale to a strategic buyer. Continued to lead a team and recruit Directors of Marketing, VP-Engineering and Business Development, and VP/GM-Mexico. Drove a focused, comprehensive 5-year strategic business plan that launched Hull-OMC into new technologies, aggressive new product development initiatives & new market penetration efforts. Developed and executed competitive roll-up strategy- led successful acquisition of 2 more competitors; consolidated marketing, product mix, and production operations. Closed 2 US plants, consolidating production into Illinois site; expanded production at Kingston, Jamaica facility & led construction on new manufacturing plant in Juarez, Mexico. Revenues during this period grew to $37MM and EBITDA reached $7.4MM. {In 2001, due to business disagreement outside of Hull-OMC, the Hawthorne Partners and Hull relationship dissolved. The Board of Directors for Hull-OMC, LLC was disbanded along with all Hawthorne business interest in Hull-OMC and I reverted to direct reporting to Matthew Hull & board of Hull Industries. Not satisfied with Hull-OMC’s EBITDA growth progress to stated goals, a subsequent decision made by Hull Industries to consolidate all Chicago operations and headquarters into other Hull Industries’ holdings. Directed to maintain the commercial business and market initiatives while Hull-OMC’s COO consolidated the operations, I continued to execute market grow strategies that centered on value added engineering, expanded brand labeling, and international market growth. With the consolidation of Chicago completed in 2003, I ended my five-year employment agreement in March 2003 to seek other interests and opportunities.}

03/2003 to present: Management Consultant and Principal owner

Founded Ventura Investment Group in 1985 with the acquisition of Pioneer Data Corporation and Carrier Consultants, primarily holdings in IT services, Payroll and Data Entry Services, and Commercial Real Estate. Upon leaving Hull-OMC LLC, established acquisition targets for Ventura Investments utilizing network of equity partners and business brokers. Targets consisted of under $10MM, manufacturing businesses, in three different regions of the country as well as service business that could be bolted onto Pioneer Data. Examined 15 different opportunities, and conducted due diligence on 5 but found to process to be very protracted given today’s bank financing environment. Decided to focus on management consulting, and established a consulting entity under Ventura Investment Group in June 2004. Initial work has been with international sensors and controls client wanting to expand into US market; conducted market research, competitive analysis, path to market, and customer/application interviews; final recommendation include added technology need to enter the position and placement sensing market, and the design/print position barriers. Client is developing new sensing technology for European market, and is not entering US market at this time.

Present client is LRK Electronics, a family owned precision component manufacturer serving instrumentation, military, aerospace, and medical markets. Initially I targeted LRK as a potential acquisition, but found them seriously lacking in marketing and sales. I was contracted by the owner to provide guidance for product/market expansion, but due to the owner’s severe heart attack last fall, I was asked by the family to serve as an interim general manager. The primary issues facing the company centered on sales revenue and cash flow constraints. Work with the staff, we controlled expenditures, managed raw material purchases, and turned inventory. The result was a 10% improvement in cash flow; implementation of automated purchasing system and reduction raw material inventory by 12%. In the last 6 months LRK entered into a brand labeling partner relationship with a major market leader in passive components. Utilizing LRK’s technology and product along with the partner’s market and sales network, KRL has released $60K of new sales, increased product distribution, and market exposure. However, the owner has now taken over the day-to-day activities . I am reverting back to providing marketing consultation and business planning as needed.

Family Bio:

Married 30 years to HS sweetheart, an operating room nurse. Two grown sons, John is 28 recently married, holds a MS-ED degree and is a High School English Teacher & lives with his wife in Oak Brook, IL. Donald is my second son, who is 26 who has is BS degree in Manufacturing Technologies and is current employed in the metalworking Industry. He lives in Peoria, IL and is currently enjoying the single life style.

I have recently relocated by to the New England area, and I am engaged to Roberta Foster, who I have known for the past five years. We both live in Concord, NH and she is a Public Health Nurse.

Association/Civic/Personal/Church/Hobbies and Activities:

Since moving to Concord, NH I am a member of St. Paul’s Church were Roberta’s family belongs. I continue to enjoy golf, and workout weekly. I am currently attending night class for program in Access for my consulting business.

Prior to moving my major Industry Associations were the Electronic Industry Alliance, National Electronic Distribution Association, and the Electronic Rep Association. I serve on the local YMCA Board. I have been associated with Kiwanis since High School.