Business Plan For:
Patrick K. Rothwell
905 Hardy Street
Hattiesburg, MS 39401
(601) 543-0072
November 01, 1996
Copy No. ______
CONFIDENTIAL
This plan may not be duplicated or distributed without prior authorization
Index
Executive Summary...............................................................1
Mission ................................................................................ 3
Philosophy............................................................................ 3
Overarching Values............................................................... 3
Company Analysis................................................................. 4
Industry Analysis................................................................... 4
Market Analysis.................................................................... 5
Management Team................................................................ 6
Strategic Planning................................................................. 6
Pricing Strategy.................................................................... 6
Advertising........................................................................... 7
Financial Analysis................................................................. 8
Projected Expenses...............................................................10
Equipment Valuation Detail..................................................12
Frequency Graphs................................................................13
Community Survey...............................................................14
Biographies..........................................................................15
Statement of Confidentiality..................................................16
Laser Mania Executive Summary
Laser Mania is a startup company planning to operate an exciting laser tag arena in Hattiesburg.
The sole owners will be Mr. and Mrs. Patrick Rothwell, of Hattiesburg. Mr. Rothwell is a
former Air Force officer with degrees in Electronic Technology and Psychology. He has been an
independent consultant in computer and electronics application, and has taught at Mississippi
Gulf Coast Community College during the past two years. Mrs. Rothwell has been a Certified
Respiratory Therapist for the last 12 years. Her most recent challenge was establishing a
diagnostic clinic in Pascagoula, MS.
The laser tag industry is approximately seven years old and has been growing in both the US
and abroad. Typical arenas can host 40 players in each session, running three sessions per hour.
Several companies now market the required hardware and software systems, in a number of
fashions. Laser Mania will purchase US made hardware and operate as a sole proprietorship.
Several vendors market franchise and partnership arrangements, however, the costs of these
ventures is high and none provide national exposure. To date there are no laser tag facilities in
Mississippi. Our opportunity for local and statewide success is unlimited.
Laser Mania will develop a laser tag arena and support facilities consisting of party rooms, office
space, video arcade and snack bar in 8,000 square feet of leased space within the Cloverleaf
Mall. The facility will feature state of the art combat mazes complete with fog machine, hightech lighting, sound systems, infrared scoring systems and radio control computer
communications. All of this impressive hardware is designed to create the ultimate game of
"King of the hill"
As previously mentioned, there are no laser tag facilities in the state, hence, no direct
competition for our product. However, we plan to concentrate on the 6-34 year old leisure
market, displacing a portion of the bowling, movie, skating, sporting and birthday party
spending. This market makes up over 50 percent of the Hattiesburg population. Our plan to
capture this leisure dollar will follow the established industry pattern outlined below:
The laser tag experience is broken into four phases:
ARRIVAL: the customer registers and is assigned a number for an upcoming session
BRIEFING: numbers are called and players assemble for team selection and a pre-game
briefing
PLAY: each session lasts 10 minutes costing $5.00 per player. Teams are pitted against
each other (red against green)
RATING: Score cards are distributed at the end of the session near the snack bar.
These phases present five opportunities for profit
Arrival, collecting the session fee ($5.00)
The built in delay between arrival and call to briefing will encourage spending at the
arcade and snack bar.
Deprived of food or drink for 5 minutes of briefing and 10 minutes of session time, thirst
will encourage snack bar sales after the intense session of laser tag
Caps, T-shirts and other Laser Mania products make excellent mementoes of an exciting
evening
The game is addictive and repeat play is the rule rather than the exception. Multiple play
by walk-in traffic will multiply revenues. Additionally, individual and family
memberships will be available.
Based on projected costs from other operators, we feel we can develop our facility for
$100,000.00. The facility will house over $55,000.00 in equipment (lasers, vests, radio and
computer systems) which will remain under a money-back warranty for the life of the loan.
Startup costs for similar franchise or partnership operations range from $550,000 and up. Our
lower startup is achieved by: buying directly from the system developer, using local build-out
labor, and investing a great deal of sweat equity.
Although startup figures are usually exaggerated, we have based our cash flow and revenue
projections on 50% of the largest franchise operators published projections. QZAR projects
annual revenues of $1,050,000.00 per location against costs of $529,250.00 per location. We
believe our performance will approach $500,000.00 per year against costs of $350,000.00
leaving $150,000.00 to be applied toward the financing of our initial $60,000.00 startup debt. At
this rate our break-even should occur during our first year of operation. When we realize the
profits from our first operation, we will doubtless look toward expansion throughout the state.
Laser Mania should be able to achieve revenues at significantly lower expense as follows:
We have located a US made product which is more versatile and costs less
As independent operators we will save $150,000.00 in royalties and management fees
levied by QZAR and other franchise or partnership operations
We will experience minimal equipment downtime by using an exchange based warranty
We plan to maximize spending per square foot in video arcade, clothing and food sales
Our operations staff will be selected and trained to present an exciting, motivated, upbeat
experience.
The laser tag industry appeals to both young people and families. It enjoys the distinction of
offering true interaction between family members, without regard to age, size or athletic ability.
Unlike video games or movies, the experience is person to person. Laser Mania is ready to apply
this technology, bringing Hattiesburg families a new outlet for non-contact family fun.
MISSION
To provide a drug-free, high intensity, healthy environment for the young as well as the
young at heart, to join others in the pursuit of a great time.
To develop outstanding employees and customers through incentive and recognition
programs
To increase our share of the entertainment market, and become the most successful
business of our kind in our area.
To eventually expand into other areas of the state, providing opportunities for our
employees and benefit to other communities
PHILOSOPHY
The customer counts on courteous and friendly employees to maximize the entertainment
experience.
The community deserves to have a clean, safe, drug-free entertainment complex in which
to celebrate special events, or experience the thrill of non-contact competition
Without the return patronage of excited customers, this business will fail. Our job security
rests in customer satisfaction.
Overarching Values
The following values dictate the actions of Laser Mania management under most conditions.
These values are basic principles that our business is built upon and, in combination with the
Philosophy and Mission statements of the company, they should provide guidance for conduct.
The elevated level of excitement, in combination with a fun and high-tech atmosphere
allows our patrons to "get into" the game. This atmosphere is very important to the
experience, and key to our success.
Our love of customers, especially young people, will be manifested by our enthusiastic
attitudes in serving them.
Our commitment to providing a drug-free, exciting, and physically therapeutic place to
spend leisure time, is based on our belief that there is truly a need for such a facility in our
area.
Company Analysis
Laser Mania is an exciting new startup laser tag company modeled after the success of other
laser arenas both nationally and abroad. The owners, Pat and Mony Rothwell are a high
energy couple in their thirties. His background is in military electronics and war planning, she
has been a high-tech medical special studies technician for 12 years. For the past two years Pat
has taught and consulted along the Gulf Coast, while Mony has established a neuro-diagnostic
clinic.
Laser Mania plans to develop systems and practices in our Hattiesburg location as a possible
precursor to statewide expansion over the next 10 years. Growth in the laser entertainment
industry is accelerating at a dynamic pace. At present there are no arenas in Mississippi, so we
believe the time and market are right.
INDUSTRY ANALYSIS
The laser tag industry has been developing for the past several years, and is currently on the
verge of explosive growth across the country. According to the International Association of
Amusement Parks and Attractions (IAAPA) there are currently over 500 arenas in more than 20
countries worldwide. (Most data presented in this plan has been gathered from the IAAPA as
well as various vendors such as QZAR, LaserTron, LaserStar and LaserRunner.) The industry
exists as a collection of independently owned and operated arenas, much like skating rinks or
bowling centers. These are stand alone or end destination laser arenas, as distinguished from
added attractions within family entertainment complexes.
Several US and foreign vendors offer nearly identical hardware and software sets,
accommodating 20 to 40 players. These sets are divided into three basic categories, separated by
level of sophistication, portability, and purpose. Laser Mania will purchase and establish a
world-class arena using top-of-the-line hardware and software systems. Lesser systems are
currently being marketed as added attractions, rather than as end destinations. By establishing an
arena in Hattiesburg, Laser Mania will preclude other laser vendors from exploring this area.
The laser tag industry is not a fad or passing fancy. According to Troy Peple, president of Zone
Management, Inc. "We think we have the right formula: the excitement and pace of video,
computerized scoring to satisfy the craving for feedback, and progressive levels of difficulty to
challenge skill development. Plus, these games incorporate physical activity and social
interaction, two elements missing in the development of an entire generation raised on video
games."
The following summary of the industry was extracted from the IAAPA:
Typical facilities range from 7,000 to 10,000 square feet with actual game areas of 4,000 to
5,000 square feet.
Turn key facilities range in cost from $400,000 to $550,000.
Prices per player range from $5.00 to $9.00 per fifteen minute game.
Payback depends on the site and the marketing effort, but generally runs between eight and
16 months.
MARKET ANALYSIS
On a national level, the laser tag market consists of several target audiences ranging from age 6
to 35. This population is further divided into subgroups of 6-13, 14-18 and finally 19-35.
Several laser arenas cater to only a select subset of the total market. Laser Mania will capitalize
on our unique opportunity by playing to the entire 6-35 spectrum.
Birthday parties, Little league teams and scout groups are ideal target audiences to develop the 612 age group. This age group comprises over 10% of the Hattiesburg population, and catering
to the needs and desires of this population builds the player base of tomorrow.
The largest number of plays per capita will doubtless come from the 14-18 year group. These
teens have a large discretionary income relative to expenses. This age bracket is ideal for group
activities such as church socials, club outings, etc. Their peer pressure and desire for both
excitement and group interaction make them ideal patrons. In addition to their need for
excitement, this group needs immediate feedback, and have outgrown the challenges of
traditional video arcade games.
The Hattiesburg area presents an additional demographic of 18-24 year old college students.
This group represents over 22% of the population. This group of students have built in rivalries
well suited to competitive marketing (i.e. fraternity and sorority challenges). In addition to
providing the largest number of players, this group will probably produce most of the employees.
The strong connection between employee base and customer focus should produce even higher
participation among this demographic.
The final group 25-35 represents 16% of the Hattiesburg population, and is further subdivided
into young professionals and young parents. Young professionals play for many of the same
reasons which draw the university crowd; excitement, visual stimulation, immediate feedback,
etc. Additionally, the professional group will be targeted for corporate teambuilding training and
possible league play. The young parent group finds the interaction between teammates and
competitors particularly appealing. Laser tag offers the parent and child a unique opportunity to
join forces and participate as peers.
Although no laser arenas exist in Mississippi to date, our competition will be for the young
entertainment dollar. Therefore, bowling alleys, skating rink, theaters and sporting events will
be our major competitors. We enjoy several distinct advantages over these more traditional
attractions. Surveys of frequent players indicate the high-energy level, multiple sensory
feedback, and interactive nature of laser tag provide more "bang for the buck" than bowling or
skating. Soaring admission prices have frequent movie goers looking elsewhere for an evening
out. And although Laser Mania will never eclipse sporting events, we can capture a large
segment of the after-game entertainment market.
MANAGEMENT TEAM
Laser Mania management consists of the owner/operators, Pat and Mony Rothwell supported by
a staff of professionals; Mr. Joel XXXXXX, attorney at law, Mr. William XXXX, CPA, and
technical assistance from the system designer Mr. XXXXXXXX, EE (See Biography of
Principals)
STRATEGIC PLANNING
Laser Mania will develop a laser tag arena and support facilities consisting of party rooms, office
space, video arcade and snack bar in 8,000 square feet of leased space within the Cloverleaf
Mall. The facility will feature two state of the art combat mazes complete with fog machines,
high-tech lighting, sound systems, infrared and laser scoring systems, radio control computer
communications. All of this impressive hardware is designed to create the ultimate game of
"King of the hill" or "Capture the flag"
We plan to concentrate on the 6-35 year old leisure market, displacing a portion of the bowling,
movie, skating and birthday party spending. The laser tag experience is broken into four phases:
Arrival, the customer registers and is assigned a number for an upcoming session
Briefing, numbers are called and players assemble for a pre-game briefing
Play, each session lasts 10 minutes costing $5.00 per player. Teams are pitted against
each other (red against green)
Score cards are distributed at the end of the session near the snack bar.
These phases present five opportunities for profit
Arrival, collecting the session fee ($5.00)
The built in delay will encourage spending at the arcade and snack bar.
After 5 minutes of briefing and 10 minutes of session time, thirst will encourage snack bar
sales
The game is addictive and repeat play is the rule rather than the exception
Caps, T-shirts and other Laser Mania products make excellent momentoes of an exciting
evening
PRICING STRATEGIES
Walk-in play $5.00 per session
Dollar off for 3.0 GPA Report Card
Dollar off for church bulletin during that week
Dollar off on Wednesday Ladies Night
Birthday Parties $200 (Session, Cake, Drink and 6 Tokens each for up to 20 children)
Individual Membership $25.00 ($4.00 games, $5.00 in tokens, bumper sticker free hat or shirt)
Family Membership $100.00 per year ($4.00 games, $20.00 in game tokens, 2 Bumper stickers,
$10.00 discount toward hats and shirts)
ADVERTISING
Laser Mania will approach advertising through several media:
Rock-n-roll radio, 30 second spots throughout the week (evening hours)
Billboards
School sporting events, school newspapers
We plan an aggressive news release program highlighting internal and external efforts such
as Employee of the Month, Hot Shot Award winners, LaserLeague standings, etc.
Direct marketing campaigns will be aimed at corporate trainers, law enforcement and other
specialty clients.
Word of mouth, coupled with walk-in traffic will increase our market exposure
We will offer dollar-off pricing for signed church bulletins during weeknight sessions.
We will offer academic incentives (free play for 4.0, dollar-off for 3.5 and up)
Definitions and Formulation of Cash Flow Predictions
Month
Self explanatory
Hours
Total hours for the given month based on
School year hours of :
3-11pm Mon - Thur
3-12pm Fri
10am -12pm Sat
12am -10pm Sun
Summer/Holiday hours:
10am - 12pm Mon-Sat
12am - 10pm Sun
Revenues
Calculated by hour assuming 21 plays per hour at $4.00 per play. This calculation
generates 70% of revenues which will be supplemented by 30% from
arcade,
concession, private parties, etc. (Refer to Revenue Generation
Estimates table)
Payroll
Calculated at $55.00 per hour, this figure includes taxes and salaries for the
owners.
Fixed
Refers to fixed expenses of $ 7,145.00 to include:
Servicing Debt Financing
$2,945.00
Financing & equipment costs
Lease payment
$1,800.00
$ 81,600.00 Annually
Insurance
$ 300.00
$1,000,000.00 Liability
Advertising
$1,000.00
30 each 30sec. Radio Spots SL-100
Utilities
$ 600.00
Estimate
Supplies
$ 500.00
Party / Stationary / Concession
Taxes(28%)
As previously stated, payroll taxes were incorporated into the $55.00 per hour
payroll estimate. This figure represents the income/sales tax incurred on the
difference between revenue and expenses. the calculation used was
((Revenue - (Payroll + Fixed)) X .28).
Debt
This represents the outstanding balance after application of the monthly payment.
P/L
Profit or Loss, this column represents the monthly profit expressed by the formula
(Revenues - (Payroll + Fixed Expenses + Taxes))
Net
This column demonstrates the Accumulation of the Cash Account without benefit
of interest accrual.
These figures are preliminary estimates based loosely on the performance data of other vendors.
As performance data tends to be inflated, we have applied an approximate 40% reduction to all
revenue claims (to adjust for reality). Factors such as depreciation of equipment, downward
adjustments to workman's compensation, compound interest on cash accounts, etc. have not been
factored into these estimates. We expect actual performance to surpass these estimates.
Laser Mania Cash Flow Estimates
Month
Hours
Revenues Payroll
Fixed
Taxes
Debt
Nov
150
18,000
8,250
7,145
729.4
60,000
June
400
48,000
22,000
7,145 4,035.36
58,555
July
409
49,080
22,495
7,145 4,199.16
57,110
August
414
49,680
22,770
7,145 4,290.16
55,665
Sept
300
36,000
16,500
7,145 2,215.36
54,220
October
299
35,880
16,445
7,145 2,197.16
52,775
Nov
296
35,520
16,280
7,145 2,142.56
51,330
Dec
349
41,880
19,195
7,145 3,107.16
49,885
Jan-97
314
37,680
17,270
7,145 2,470.16
48,440
February
281
33,720
15,455
7,145 1,869.56
46,995
March
329
39,480
18,095
7,145 2,743.16
45,550
April
290
34,800
15,950
7,145 2,033.36
44,105
May
300
36,000
16,500
6,145 2,215.36
42,660
June
400
48,000
22,000
6,145 4,035.36
41,215
July
409
49,080
22,495
6,145 4,199.16
39,770
August
414
49,680
22,770
6,145 4,290.16
38,325
Sept
300
36,000
16,500
6,145 2,215.36
36,880
October
299
35,880
16,445
6,145 2,197.16
35,435
Nov
296
35,520
16,280
6,145 2,142.56
35,435
Dec
349
41,880
19,195
6,145 3,107.16
33,990
Jan-98
314
37,680
17,270
6,145 2,470.16
32,545
February
281
33,720
15,455
6,145 1,869.56
31,100
March
329
39,480
18,095
6,145 2,743.16
29,655
April
290
34,800
15,950
6,145 2,033.36
28,210
P/L
1,875.60
14,819.64
15,240.84
15,474.84
10,139.64
10,092.84
9,952.44
12,432.84
10,794.84
9,250.44
11,496.84
9,671.64
11,139.64
15,819.64
16,240.84
16,474.84
11,139.64
11,092.84
10,952.44
13,432.84
11,794.84
10,250.44
12,496.84
10,671.64
Net
1,875.60
16,695.24
31,936.08
47,410.92
57,550.56
67,643.40
77,595.84
90,028.68
100,823.52
110,073.96
121,570.80
131,242.44
142,382.08
158,201.72
174,442.56
190,917.40
202,057.04
213,149.88
213,009.48
226,442.32
238,237.16
248,487.60
260,984.44
271,656.08
Assumptions based on financing $60,000@ 7.5% over 4 years. Lease rates fixed at $10.20/sq ft
Laser Mania Revenue Generation
SOURCE
Laser Plays(70%)
VideoGames(5%)
Consessions(7%)
Hats/Shirts(3%)
Members(10%)
Party Sales(5%)
TOTAL
Monthly (332hrs)
1st Year
27,888
1,992
2,788.80
1,195.20
3,984
1,992
39,840
334,656
23,904
33,465.60
14,342.40
47,808
23,904
478,080
2nd Year
334,656
23,904
33,465.60
14,342.40
47,808
23,904
478,080
Laser Mania
Community Acceptance Survey
I feel Hattiesburg needs a clean, safe, non-contact youth entertainment facility.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
I welcome businesses that offer young people a drug-free outlet for recreation.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
I welcome youth oriented businesses that maintain a smoke-free environment.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
I appreciate a company that offers young people incentives based on good grades.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Disagree
Strongly Disagree
Disagree
Strongly Disagree
Disagree
Strongly Disagree
I would patronize a business that supported church attendance.
Strongly Agree
Agree
Neutral
I have heard of laser tag and think it sounds fun and exciting.
Strongly Agree
Agree
Neutral
An evening of entertainment usually costs at least $20.00.
Strongly Agree
Agree
Neutral
Hattiesburg needs a facility to host birthday and special event parties.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Disagree
Strongly Disagree
Young people really seem to enjoy fast paced video attractions
Strongly Agree
Agree
Neutral
Young people want to buy shirts and hats featuring their favorite teams, groups or products.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Young people spend a great deal of money on snack foods and beverages.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
I believe young people need more experiences which encourage teamwork and interaction.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Projected Expenses (*Items in Italics are subsets of the preceding topic)
Item or Service
EQUIPMENT
LASER WEAR
SOUND SYS
SPECIAL LIGHTING
FOG MACHINE
CARPET
BARRICADES
LIGHT FIXTURES
PARTY ROOMS
TABLES & CHAIRS
PAINTING
BOOTHS
COUNTERS
POPCORN
NACHO WARMER
SNACK BAR
OFFICE FURN
OFFICE MACH
EXPENSES
UNIFORMS
LEASE
LABOR
*Wages (Owners Included)
*FUTA (6.2%)
*FICA (7.65%)
*MWCI (5.0%?)
*MSTC (14.0%)
*MESC (2.7%)
INSURANCE
LICENSES
*County
*City
ADVERTISING
COST OF GOODS SOLD
UTILITIES
*Electric
*Telephone
*Water
SUPPLIES
STATIONARY
SHIRTS/HATS
PARTY WARE
CLEANING SUPPLIES
OFFICE SUPPLIES
MISC EXPENSES
Legal Fees
Accounting Fees
Office Software
Start-up Cost
Monthly Operations
First Year Cost (S+(MX12)
Second Year Cost (MX12)
44,000
1,000
540
2,000
3,000
3,500
1,350
2,500
520
1,000
1,800
500
500
200
500
500
500
1,000
56,000
1,000
200
4,400
2,40
150
2,300
500
500
1,80
300
12
6,800
18,260
444
81,600
219,120
141,223
13,585
16,763
10,956
30,677
5,916
3,600
85
35
50
15,000
14
81,60
219,12
141,22
13,58
16,76
10,95
30,67
5,91
3,60
8
3
5
12,00
7,800
2,600
2,600
2,600
6,100
800
2,800
800
840
860
7,20
2,40
2,40
2,40
4,20
60
2,40
60
24
36
1,200
1,600
500
60
300
85
35
50
3,000
600
200
200
200
1,900
200
400
200
600
500
1,200
1,000
500
1,000
600
350
50
200
50
20
30
50
Sub-total
Less italics
Operating Costs
Contingency Funds
Financing
Total Costs
Revenues
Net
75,080
-2,585
52,495
7,500
-59995
29,072
-350
28,722
614,854
-233,105
381,749
563,35
-230,60
332,74
1,580
-30,302
39,840
9,538
18,960
-400,709
478,080
77,371
18,96
-351,70
478,08
126,37
Notes:
Labor is calculated using $55.00 per hour against an average month of 332 hrs.
Financing is calculated using $60,000.00 @ 12.5% for a term of 4 years ($1,578.36).
Lease is calculated using $10.20 per sq ft against 8000 square feet.
Explanation of Contingency Funds
A contingency account of $7,500.00 is budgeted to account for:
price changes in material or labor estimates
overestimation of cash flow
one-time expenses which may have been overlooked (fees, deposits, etc.)
Equipment Valuation Detail
EQUIPMENT ITEMS
LASER WEAR
30 VESTS
3 TARGETS
2 486 COMPUTERS
SOUND SYS
AMPLIFIER
CD PLAYER
2 ea SPEAKERS
SPECIAL LIGHTING
2 ea VERTIGO LIGHTS
FOG MACHINE
2 ea 10,000 SQ FT
BARRICADES
8FT WALL UNITS
LIGHT FIXTURES
27 ea WITH BULBS
2 PARTY ROOMS
CARPET & DECOR
BOOTHS
10 ea 4 SEAT w/TABLE
SNACK BAR
POPCORN POPPER
NACHO WARMER
RACKS & CANISTERS
OFFICE FURNITURE
DESK & CHAIR
OFFICE MACHINES
2 ea CASH REGISTER
MISC
COUNTERS
TABLES & CHAIRS
Total
UNIT COST UNIT RESALE VALUE
EXTENDED COST EXTENDED RESALE
2,000
1,200
1,200
1,600
1,200
1,200
60,000
3,600
2,400
48,000
3,600
3,600
400
200
200
400
200
200
400
200
400
400
200
400
270
270
540
540
1,000
1,000
2,000
2,000
3,500
0
3,500
0
50
50
1,350
1,350
2,500
0
2,500
0
180
180
1,800
1,800
500
200
500
350
100
0
500
200
500
350
100
0
500
250
500
250
250
125
500
250
500
520
0
250
500
520
0
250
80,890
62,840
Notes. 1) As stated on page 8, depreciation schedules have not been factored in any cost or
earnings projections. SEMCIC is free to place restrictions on depriciation scheduling to protect
the value of inventory.
Biography of principals
Patrick K. Rothwell
Pat is a former Air Force Officer, currently participating in the Air Force Reserves.
Additionally, he has taught at the Mississippi Gulf Coast Community College and is currently
consulting on computer and electronics issues along the gulf coast.
His military career began as an enlisted electronics technician in the Precision Measurement
Equipment Laboratory at Keesler AFB, MS. There he earned his Associates Degree in
Electronic Measurement Technology. While at Keesler, he also attended USM, Long Beach,
earning a Bachelor of Science Degree in Psychology. His enlisted career was highlighted with
the receipt of many awards for technical achievement, as well as academic awards in Leadership
and Management.
Rising through the ranks, Mr. Rothwell was commissioned as a Lieutenant in 1987. His service
as an officer was in the Logistics Plans career field, primarily as a War Plans Officer. In these
duties, he participated in the planning of Operation Just Cause and in Dessert Shield/Storm.
During his tenure as a plans officer, he garnered awards as the "Best in 21st Air Force" (A
division covering the entire eastern half of the nation). In a subsequent assignment to Japan, his
office was awarded "Best in the Pacific Theater".
Although lacking retail experience in the amusement industry, Mr. Rothwell brings an
outstanding record of achievement, highlighted by its diversity. He has excelled in every effort
to date. The success of this venture will be immediately impacted by his efforts. Doubtless it
will succeed.
Ramona "Mony" Rothwell
Mony is a Certified Respiratory Therapy Technician who has excelled in her field for more than
12 years. Her technical expertise has made her a leader in her profession, as evidenced by her
ability to consult as an expert witness in court cases. In addition to respiratory care, she has
worked as a Special Studies technician with today's most sophisticated medical hardware to
include: laser, Doppler, ultrasound and neuro-diagnostic equipment. Most recently, she was
hired to develop all procedures, practices and policies for establishment of a neuro-diagnostic
clinic in Pascagoula, MS. The clinic was up and running in well under the expected startup time.
Mony's most important task, and the one which highlighted the need for youth attractions in
Hattiesburg, is as mother to her six year old son Kenneth. In this role she currently volunteers as
a team mother to the Petal Optimist Club T-ball team, and also volunteers at the Kamper Park
Zoo. An energetic and committed parent, she is committed to making Laser Mania a fun, safe,
family entertainment outlet. Both she and Pat intend to be hands-on operators of the business,
ensuring their vision is brought to life.
Laser Mania
Statement of confidentiality
January 15, 1996
Patrick and Mony Rothwell
105 Pinehurst Street
Hattiesburg MS 39401
Gentlemen,
You and Laser Mania, have entered into this Agreement to define your responsibilities with
respect to information received and to be received from the company in the course of discussions
about your possible participation in a proposed investment in the company.
For ten dollars and other goods, valuables, mutual and reciprocal considerations, the receipt and
sufficiency of which are hereby acknowledged and confessed, you have entered into this
agreement with Laser Mania.
1. All information given to you about the company by the company, including but not limited to
the company's business plan dated August 23, 1995, and any updates thereto, shall be deemed to
be "Confidential Information" for purposes of this agreement.
2. You shall not use or disclose any of the Confidential Information without the Company's
prior written permission, except for information which, when you received it, was well known to
you as evidenced by prior written materials or publications.
3. You also agree that as long as this Agreement is in effect and for one year thereafter, you will
not directly or indirectly, either alone or with one or more parties, seek to acquire or invest in the
Company, without the prior written consent of the Company.
4. You agree that you will not, without the prior written consent of the Company, use the
Confidential Information for any purpose other than required for the discussions hereunder. You
represent that you have no obligations or commitments inconsistent with this Agreement. You
agree to limit disclosure of Confidential Information received hereunder to only those of your
officers and employees who are directly concerned with the discussions between you and the
Company. You shall advise your officers and employees of the proprietary nature of the
Confidential Information and shall use all reasonable safeguards to prevent the unauthorized
disclosure of such Confidential Information by them.
5. Nothing contained in this agreement shall require either party to enter into any future
agreement with the other. Upon termination of the discussions hereunder, you shall promptly
return all materials containing Confidential Information, including all extracts and copies
thereof, to the Company.
6. You agree that the remedy at law of the Company would be inadequate as to any
unauthorized use or disclosure of the Confidential Information by you and agree that the
Company shall be entitled to preliminary and permanent injunctions in any court of competent
jurisdiction to prevent such unauthorized use or disclosure by you.
7. This agreement shall be construed and enforced in accordance with and governed by the laws
of the commonwealth, which shall be the sole venue for resolution of any dispute arising under
this Agreement.
8. This Agreement, including any term hereof, may be amended or terminated only in writing by
the parties hereto.
9. This Agreement embodies the entire agreement and understanding between the parties with
respect to the subject matter hereof and supersedes all prior agreements and understandings
relating to the subject matter hereof.
10. All of the terms of this agreement, whether so expressed or not, shall be binding upon the
respective successors and assigns of the parties hereto and shall inure to the benefit of and be
enforceable by the parties hereto and their respective successors and assigns.
Please indicate your acknowledgment and acceptance of the terms of this Agreement by
executing this original of this Agreement and returning it to the Company.
Laser Mania
Patrick and Mony Rothwell
Owners and Operators
ACKNOWLEDGED AND ACCEPTED:
By:
Name and Title:
Investment Summary
Total worth of Laser Mania: $ 100,000.00
Rothwell's participation
$ 55,000.00 Goods & Services
Community Development
$
30,000.00 Loan (4 years @ 7.75%)
Investment Opportunity
$
15,000.00 Collateral to secure bank financing of $15,000.00
This could be cash or market traded stock.
As you can see we are offering 15% of the company to be held by investors. Our ideal situation
would involve three $5,000.00 investors. This affords us the ability to cash out an investor,
should an investor meet with an unfortunate circumstance (family emergency, etc). Although
our preferences are for multiple small investors, we remain willing to accept a single investor for
the entire $15,000.
As we see it, the potential investor may choose between one of the following options.
VENTURE CAPITAL:
The investor buys shares of stock equating to 5% of the company for a cash price of $5,000.00.
The future value of the stock will be determined by the company accountant at time of
liquidation, with Laser Mania being offered the right to buy-back. For this investment, the
investor will receive a 5% share of profits after expenses each quarter. Current projections
would indicate a very lucrative rate of return. Doubling initial investment in two to three years is
very possible!!
INTEREST BEARING LOAN:
The investment of $5,000.00 is not tied to company performance. Rather, it is placed in deposit
in a Certificate of Deposit account, securing bank financing. This CD is for the four year
duration of Laser Mania's financing. The Bank compounds interest at a rate of 5.5% APR,
interest which will be paid to the investor. Additionally, Laser Mania will pay an interest
premium of 15% APR in Quarterly payments. Should Laser Mania reach it's target of payoff
within 1 year, Laser Mania will reimburse the investor any penalties assessed by the Bank,
should the investor choose to withdraw the CD at that time. The additional interest premiums of
15% will terminate upon payoff of Bank financing.
Remember, we would like to open within weeks, so time is of the essence.