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True Dimensions – Organization
7.1 Relationship with Flogiston Corporation
On January 6, 1995, True Dimensions entered into a licensing agreement with Flogiston Corporation for exclusive worldwide rights to the FlogistonTM Chair. Flogiston Corporation’s principal, Brian Park, is also the designer of the chair. True Dimensions will continue to develop new products with Flogiston Corporation through sponsored research agreements. Park’s current projects include work as a general contractor for NASA in the development of motion based platforms used for extra-vehicular activity (EVA) training. Park is also working on various experiential virtual reality theme park projects that integrate light, sound, motion, and infrasound, with the FlogistonTm Chair. Brian Park is a 5% stakeholder of True Dimensions and holds a seat on the Board of Directors.
7.2 Patents, Licenses, and Royalty Agreements
Flogiston Corporation will receive a 5% royalty on net sales for 2 years, a 4% royalty charge for 2 years, a 3% royalty for 11 years, and a 1.5% royalty thereafter. Other furniture designers will be hired to develop future products. They will earn either a flat fee or a similar 3% to 5% of sales.
7.3 Company Management
On January 6, 1995, the management team launched True Dimensions, Inc. as a manufacturing and marketing entity featuring the FlogistonTM Chair as its initial offering. The team possesses relevant work experience in finance, manufacturing, and marketing. One member of the team has twelve years of experience in the furniture industry. Another member has eight years of industrial marketing and sales experience. Beyond June, 1995, two team members will remain full-time with True Dimensions and the remaining three will perform consulting and sales services on a part-time basis.
- Michael Hanratty, President
- Mike has a mechanical engineering degree and eight years of prior managerial experience that includes cominerciali2ing NASA technology, manufacturing quality assurance, and industrial product marketing and sales. Mike directs the company’s overall business strategy and is responsible for True Dimensions’s production, logistics, product design, and quality specification standards. (See Appendix C, pages 26-27).
- Irene Bond, Director of Marketing
- Irene has twelve years experience in the furniture industry including sales of multiple furniture lines and management of three furniture start-up companies. She has ten years experience managing a direct sales force. She currently works for the Austin Technology incubator on NASA technology commercialization. Irene is the company’s contemporary furnishings industry specialist maintaining important industry contacts.
- Jeff Hoogendam, Financial Consultant
- Jeff has three years of prior business consulting experience in the following areas: new venture development, information systems integration, and strategic marketing. Jeff oversees financial planning and legal concerns.
- Wes Boyd, Marketing/Sales Consultant
- As a former high school teacher and coach, Wes created and directed a successful start-up outdoor adventure and sports camp. He has experience in launching new consumer packaged products for Procter & Gamble. Wes manages True Dimensions’s channel development, promotion strategy, and direct sales efforts.
- Leslie Frank, External Relations Consultant
- Leslie has two years of consulting experience with a big six accounting and management consulting firm. Her focus is on the corporate image and external relations development of True Dimensions.
7.4 Board of Advisors
The following Board of Advisors has assisted the company in its formation and are committed to continued involvement in True Dimensions’s success.
- Jim Wallace: IBD, Bommarito Group – Architecture and design firm
- Bowen Loftin: NASA, University of Houston – Director of virtual reality training
- E. Lee Walker: Community Investment Corporation – Entrepreneur, Professor of Management at the University of Texas Graduate School of Business
- Francine Fox: Stress Management Group – Owner and President, has successfully marketed her products through Sharper Image
- Mary Anne Sikes: ASID, IFDA – Interior designer
- Rebecca Stinson: JG Systems – Furniture manufacturer’s representative and former retailer
- James Cole: formerly with ARTEDI (ultra-contemporary furniture manufacturer) – Independent sales representative, former product manager
7.5 Company Structure and Ownership
True Dimensions is registered in the State of Texas as a Subchapter S Corporation with 1,000,000 shares authorized. Ownership before any offering is as follows: Brian Park – 5000 shares, Jeff Hoogendam – 40,000 shares, Michael Hanratty – 40,000 shares, and 15,000 are held over in treasury stock for future employee stock incentives.
|True Dimensions, Inc.|
|Table of Contents||Appendices|
|0. Executive Summary
1. The Company
3. Market Analysis
4. Technology & Operations
5. Customer Interviews
6. Marketing Strategy
8. Risk Analysis
|All information herein is confidential and belongs to True Dimensions, Inc.|