7.0. EDSR 03-09-1998 - Laserfiche WebLink

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I. ORGANIZATIONAL PLAN • I Watermark I Description of the Business In January of 1993,Michael Gill formed a business, which was structured as a sole f proprietorship. In January 1994,the business structure was changed to a partnership, named Watermark, so that Maureen Gill would have equal (50%)ownership of the company. As of December 1997,the founders of Watermark, partnership, have joined with Harlan Jacobs of Genesis Business Centers, LTD,to create Watermark Corporation. In the interest of expanding the business, improving legal protection, and minimizing taxation, the business structure will be a Limited Liability Corporation(LLC). Formation of this corporation will be completed on January 1, 1998. Over the past four years Maureen and Michael Gill have self funded the design, } development, production, marketing, and sales of an underwater video product called Watercam. The target marketing for this unique product has focused on the 6000 members of the American Swim Coaches Association(ASCA), which is a small segment of the aquatic training market. The reason for selecting this market segment was that our initial marketing research indicated a high level of acceptance of this type of new product within ASCA. It was also highly reachable through low cost advertising that fit within the budget. • The Watercam product introduction and first sales were made in 1996. As anticipated through market research, sales increased through the end of the first year. In 1997, Watercam total sales increased by 300%over 1996 total sales. Watercam sales are projected to increase within ASCA in the next year. In addition to increasing ASCA sales, growth is projected from expansion of Watercam sales in other segments of the aquatic training market such as swim instruction facilities (YWCA/YMCA)and coaches of other aquatic sports(diving/synchronized swim). This will be accomplished through the addition of commissioned sales groups and increased advertising budgets. There has also been international interest from European,Asian, South African, Canadian,and Australian markets which could be reached through proper advertising. As Watermark continues to produce and sell Watercam to the aquatic training market, a new product will be developed and marketed to expand the underwater camera product line. The new product, called Fishcam,would be a cost effective version of Watercam,adapted for use in the sport fishing market. Such a product would substantially increase sales by fulfilling a need in this large, technology hungry market. Our marketing research has shown that there is a demand for such a product near or below our targeted$990 price. Currently such a product does not exist in this price range. Over the next three years,Watermark will be positioned as the leader in remote underwater video products. This will be done through means of producing quality products at a low • cost, marketing aggressively, expanding into additional markets,applying technological innovations, and obtaining adequate legal protection. 1