Page 78 - Gary's Book - Final Copy 7.9.2017_Active

My attraction was that Mr. Lorentzen was planning on retiring and turning the
business over to his son and wanted him to have a partner like he did. The son was
a 26-year-old introvert who had worked in the business but had had no formal
education or outside experience. In fact, I later found out he was gay.

I started on July 30, 1984, as national sales and marketing director reporting to
Rick, the son, who was the vice-president with a dotted line to his father. My

salary was $65,000 with a monthly bonus plan, annual profit sharing and an
executive bonus determined by the level of profits - all of which could increase my
salary by 55+%. I had a company car allowance, which allowed me to purchase my
first Cadillac. All my relocation expenses were reimbursed with assistance for
temporary living. The second attraction I had was that I had a chance of acquiring

company stock at a favorable price. Also, after the second year of employment, I
had the opportunity of being considered for becoming a partner.

The surprise was with the specialized four-color silk screen printing presses. They
were not enlargeable, which made it impossible to expand the business. This
restricted our ability to acquire new sales. We couldn’t handle it; we couldn’t

produce it. We would have to purchase new equipment. Being on the West Coast
meant shipping costs really reduced profit margins if securing business east of the
Mississippi River. The only possible major increases in business had to come from
the beverage drink bottling industry and their annual growth and any sizeable
market share that came from their competitors. Profitability was reduced as
revenues increased there. I had to be selective in what business was quoted and
secured. Customer loyalty and retention were key, so physical visits and

entertainment became more important - just more expenses that would be reflected
in our profit margins. The variable portion of my income was not as bright as the
year before. It necessitated that I call on Coca-Cola in Atlanta, Georgia; Pepsi in
White Plains, New York; Dr. Pepper in Dallas, Texas; and 7-Up in St. Louis,

Missouri.

Overall, the first year to eighteen months at Screen Print was not as successful as I
had desired it to be. Also, the son, Rick, had established a personal relationship
with his significant other and had told his father that he wanted him to be his
business partner; this was unknown to me at the time. I was told to close two
offices, release the employees, return the company cars and draft all the paper

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