Letter of Employment for Members of a Startup Llc

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    2009
Annual Report
                                                                                                                                                                               1




Table of Contents
Letter from the Chairman .........................................................................................................................................2
Letter from the CEO .....................................................................................................................................................3
Introduction ....................................................................................................................................................................4
Measuring Against our Purposes ..........................................................................................................................5
2009 Activities and Results......................................................................................................................................6
The LLC s Deal Funnel ................................................................................................................................................8
Investments .................................................................................................................................................................. 10
Investments by Industry and Location............................................................................................................ 12
Holding Company Operations.............................................................................................................................. 13
Business Units ............................................................................................................................................................. 14
Performance Metrics ................................................................................................................................................ 17
Corporate Governance ............................................................................................................................................ 21
Board of Directors ..................................................................................................................................................... 24
Holding Company Management Team ............................................................................................................ 27
                                                                                                                    2




Letter from the Chairman


March 31, 2010

To the Citizens of the Osage Nation:



C
      onsidering our history and our current struggles for self-determination, I am very
      aware of the important charge you have given me and my fellow Board members
      in the Osage LLC: To deploy, diversify, and grow the capital that has been
allocated to the Osage LLC from the pool of capital which was recently garnered from
gaming.

Accordingly, it is with a considerable sense of responsibility that we present our first
annual report for the Osage LLC a document describing what your newly created
corporation has done in its first year. The Nation s Executive and Congress worked
together to carefully set boundaries between business and politics and to specify the means by which the
Board would be accountable to the Nation for the LLC s performance. This annual report is one of the
mainstays of that accountability a document whose integrity is essential to your confidence in us and in the
system of corporate governance.

As your stewards for this portion of the Nation's capital, we are proud to serve in this young creation. The
careful structuring of the LLC is helping us attract people who are willing to invest their time, talent, or capital
on the Osage Nation. It enabled us to assemble a dedicated and experienced board and to attract a qualified
and energetic CEO, Carol Leese. Carol brings to us his knowledge of Indian business, a nose for opportunities,
and an entrepreneurial spirit that exceeds our expectations. We in the board feel that we could not have
attracted a CEO of Carol s talents and experience without the sound system of corporate governance that the
Nation instituted in 2008. He, in turn, will tell you that outside investors are impressed and reassured by the
stability that our governing documents imply.

In the pages that follow, you will see that 2009 was a year of laying groundwork. We began the year with no
employees, no policies, no subsidiaries, and start-up capital of one million. The Nation transferred to us the
Palace Grocery, the Osage Gift Shop, and Osage Data, and it made a capital investment of three million dollars.
The board hired Carol Leese in March, he in turn, hired three corporate staff members including a controller.
We have made three passive investments with a return on invested capital exceeding that earned by the
Nation's other non-gaming capital. We have developed internal policies and are refining a long-term strategy.
We are also instituting internal controls for the three businesses that were transferred to us so that they can
be turned profitable as soon as possible, and if not, sold or liquidated before they divert our capital resources
and managerial attention.

Now that the LLC is launched and has finished its first busy year, our test will be the test of time. It is early
days yet, and the ultimate success of the LLC will only be apparent after some years have passed by. In the
meantime, we intend to work hard on your behalf, to report to you what we have done and achieved, and to
measure ourselves against appropriate objective standards of corporate performance.

I remain honored to serve as your Chairman,

Chuck Maker
                                                                                                      3




Letter from the CEO

March 31, 2010


To the Citizens of the Osage Nation:




A
      s a fairly new member of the Osage, LLC, I am excited to be working for
      the Osage Nation. In my first year of employment, I have met some
      great people, and I have come to respect the progressive nature of the
Nation s leadership and government.

I am very pleased with our progress in 2009. Start-up companies have many
challenges in developing organization and clarifying strategy. We were able
to build a professional team, institute policies and procedures, and meet our
strategic goals as set forth by the Board of Directors.

In 2009, we made three passive investments: Haley Securities, New Net Technologies, and Elm
Street Village. These businesses are passive in the sense that we do not take an active
management role, however they differ from common "passive" investments like mutual funds in
that the deals are private and require our due diligence prior to participation. We receive monthly
dividends from these investments, and they have a weighted average annualized return of 10%.

In 2010, we will start making a shift to business development or active investment. Growing
capabilities is the ultimate strategy for the LLC, giving us the best opportunity to create wealth and
jobs for the Osage Nation. We will take an aggressive approach to business development by
building capabilities through teaming relationships and acquisitions. In addition, we will look to
improve our subsidiaries business acumen, internal systems and controls.

Section 8 (a) certification held by Osage Business Enterprise was terminated in August of 2008 for
compliance reasons including deficiencies in reporting to the SBA and lack of capital support. We
are in the application process to have an additional subsidiary certified under the 8(a) process and
look to acquire an individual 8(a) company and transfer ownership to the LLC.

Capital and governance are imperative to achieving long-term strategic goals and success. Thank
you for your on-going support of the Osage LLC.

Sincerely,


Carol Leese
CEO
Osage LLC
                                                                                             4




Introduction



T      his Annual Report takes a form that may be unfamiliar to those accustomed to the
       administration of tribal programs.

       First, it is a document with a particular legal origin: The Enterprise Board, in
conjunction with the CEO, shall present to the Member regular annual...reports and plans,
including an annual operation plan, including budgets, an annual funding request and
purchasing policies annual audit statements an annual report describing progress
against company goals in the past year (Articles of Operation, ONCR 08-09)

Second, as a corporate document, it is intended to portray the performance of the business
according to measurements uncommonly used in government programs (e.g., return on
invested capital, net income, or year-on-year growth).

Third, it is a document subject to outside corroboration. The Board's Audit Committee
selected an auditor independent of the LLC's controller and accountant to review the
financial statements for conformity with Government Auditing Standards as they apply to
government owned enterprise.

Fourth, as the annual report of a startup company in its first year, this document focuses
inherently on activities and growth opportunities, not yet on profitability, cost control, and
other metrics appropriate to a mature company.

Fifth, the document cannot be perfectly transparent about the LLC s business, if only
because divulging proprietary or sensitive competitive information would diminish our
value to the Nation.

Since it is also the annual report of a corporation owned by an Indian nation, the document
addresses social and community goals such as employment and economic diversity. It also
must attend to matters of corporate governance, since nation-owned enterprises present
unique challenges in Indian Country.

Suggestions for improvement in the 2010 Annual Report may be directed to
jtaylor@osagellc.com
                                                                                          5




Measuring Against our Purposes

   Last year in our annual plan for 2009, we established the criteria by which we expect to
be judged. These criteria were derived from Article III of our Articles of Operation...

       (a) To create and stimulate the economy of the Osage Nation and to create
           employment opportunities for tribal members.

       (b) To generate profits to promote the growth and continuity of the Company and
           for distribution to the tribal government.

       (c) To increase the economic well-being of the members of the Nation in accordance
           with the economic development policies and plans of the Nation as adopted by
           the Legislature of the Osage Nation.

       (d) To engage in any lawful business or other activities necessary, customary,
          convenient, or incident thereto for which LLC's may be organized under the Act.

   In that Annual Plan, we laid out three essential criteria: profit, employment, and
   economic diversity.

       Profit
 The Member has asked us to generate profits, and we intend to do that as best we know
how. While the Osage LLC must also advance secondary priorities and attend to secondary
concerns, they are exactly that secondary. The board intends to demonstrate that our
long-term returns on invested capital exceed reasonable proxies for the Member s best
alternative options for excess funds.

        Employment
 We intend to acquire and develop businesses that employ Osages, Indians, and non-
Indians in and around the Osage Reservation as market conditions permit Annually, the
board will report employment numbers Employment is a management variable the board
will be especially attentive to.

       Economic Diversity
 The board expects to report the capital we have invested by industry segment and to offer
qualitative narrative about the industry choices made to advance economic diversity.

Of course, performance in any one year on these criteria will fluctuate with market
conditions and corporate capacity. The important thing is that performance generally trend
upward over the years and decades.
                                                                                             6




2009 Activities and Results



W
           e are pleased with our progress in our first full year of business. The LLC met
           or exceeded all of its organizational, investment, and business development
           goals.

                    2009 Plan vs. 2009 Actual

1. Organization Structure
Goals:                                         Actual:
   · Employee Handbook                          Completed
   · HR Policies                                Completed
   · Accounting Process                         Completed
   · Purchasing Systems                          Completed
   · Budgets                                     Completed
   · Fringe                                      Completed
   · Internal controls                           Completed
   · Travel/credit card policy                   Completed
   · Communication and reporting                 Completed
       policies

2. Staffing
Goals:                                         Actual:
   · CEO March 09                                March 9, 09
   · Executive Assistant May 09                  June 9, 09
   · CFO/Controller Sept 09                      Oct 5, 09

3. Strategic Planning Session with LLC Board
Goals:                                         Actual:
   · 2 day Board meeting in June                 June and October

4. Passive Investments
Goals:                                         Actual:
   · At least 3 passives totaling $1.5           Haley $500k, DCC $750k, Elm $350k/40%
       million                                 equity
                                                                                       7




2009 Activities and Results


5. Subsidiaries
Osage Data Goals:                            Actual:
   · Increase Revenue                          Grew revenue
   · Expand business                           Teaming partners (const, tech,)
Palace/Gift Goals:                           Actual:
   · Expand                                    Clifton s/WIC
   · Paper goods                               Didn t make business sense
   · Planning sessions                         Several
   · Help make profitable or liquidate         Transferred in June/Oct plan in place
Tulsa Airpark Goals:                         Actual:
   · Best use study                            Wilbanks
   · Manage and develop to full potential.     Walman/Increased lease space

6. Section 8(a) Certification
Goals:                                       Actual:
   · Develop best strategy for new 8(a)        New application under Osage Data Sub
   · Start application process                 Application submitted to SBA
                                                                                                         8




The LLC s Deal Funnel

                                                                        Meeting with 137 companies
                                                                        Meeting with 6 federal entities
        New Companies                                                   3 Conferences (IITC,RES, Finance)
                                                                        Teaming Partnerships
                                              2009
                                                                        Industries reviewed Utilities,
        Review of Companies                Deal Funnel                  Energy, IT Services, Distribution,
                                                                        Financial Services, Real Estate
                                                                        Energy, Distribution, IT Services,
        Presenting                                                       Real Estate

                                                                        Energy, Distribution, IT Services,
        Due Diligence                                                   Real Estate


        Investment                                                      Real Estate, IT Services




Keeping our deal funnel full is essential to the success of the LLC. Without a steady diet of
potential acquisitions, partnerships, and ventures, an Indian Country holding company has
to settle for whoever shows up.

If 2009 is any guide, the LLC will look at several hundred investment opportunities
annually. These will be classified in three categories; unsolicited, solicited, and referred.

    ·   Unsolicited Deals that come off the streets. These deals have a low probability of
        meeting our strategic vision and may involve proponents looking for an easy mark
        in Indian Country. Consequently, we consider these through an internal protocol
        that measures them quickly against a high threshold before researching the project
        further.
    ·   Solicited Deals that the LLC seeks strategically to meet a specific investment or
        business development need. These deals start with a strategic fit and typically
        require a presentation and due diligence before investment.
    ·   Referred The LLC has many deal-flow resources through private equity groups,
        funds, and consultants that provide qualified opportunities. These groups
        understand our annual business strategy and will only send us deals that meet our
        investment criteria. These projects benefit from our eyes being the second set on
        the project, but they still pass through a presentation and due diligence review.

Our aim is to keep the solicited and referred pipelines full so that we are not at the mercy of
unsolicited proposals.
                                                                                          9




Part of our ongoing strategy is to make passive investments to generate income to cover
overhead that will ultimately allow the LLC to become self sufficient. These businesses are
 passive in the sense that we do not take an active management role, however they differ
from common "passive" investments like mutual funds in that the deals are private and
require our due diligence prior to participation. We also aim to make sure the expected
returns justify the added costs of finding and vetting the deals. We receive monthly
dividends from these investments and together they have a weighted average annualized
return of 10%.
                                                                                             10




Investments

                                     In late 1992, John E. Jack Haley and Donald F. Day
                                     founded Dial Equities, Inc. Dial Equities is a real estate
                                     management company that specializes in the
                                     management of multifamily housing communities
throughout the Midwest and Texas. Dial Equities is an affiliate of the Dial Companies, in
Omaha, Nebraska. Jack Haley, Chairman of the Board of Directors, has over 30 years of
experience in multifamily investments and securities brokerage. From 1992-2000, Dial
Equities, Inc. and John E. Haley served as the general partners in each operating limited
partnership that were formed for the sole purpose of acquiring multifamily assets. In
January 2001, all of the limited partnership interests in the nine operating partnerships
were rolled up into one master limited partnership known as Haley Associates Limited
Partnership. This was accomplished through an exchange where all of the limited partners
in each of the nine operating partnerships took an interest in Haley Associates Limited
Partnership. Haley Associates Limited Partnership became the sole limited partner in each
of the operating partnerships. The LLC s investment is $500,000.


With thousands of systems deployed in over 60
countries, NewNet CT is a recognized leader in
signaling and messaging solutions for wireless,
IP, and wireline networks. The robust, scalable
signaling platforms have enabled rapid
development and deployment of a wide spectrum of carrier grade, revenue generating and
compliance applications. NewNet CT, the progeny of the predecessor companies, is a
pioneer in the development of standards based SS7 signaling solutions and is committed to
providing unparalleled service and value to our customers. For nearly two decades,
NewNet CT has been synonymous with signaling platform excellence and is the trusted
name in SS7 signaling solutions. Originally founded in 1989 as EBS, the company was the
first to develop and deploy a standards based SS7 signaling platform for the
telecommunications industry. In 1991 EBS became NewNet and subsequently was acquired
by ADC Telecommunications in 1997 to become ADC NewNet. In 2001 ADC NewNet
became the ADC Enhanced Service Division with the combination of the messaging
products of Centigram Communications. In 2001, SS8 Networks acquired the Enhanced
Services Division (ESD) of ADC Telecommunications. In 2007, NewNet Communication
Technologies acquired the signaling and SMS products from SS8 Networks in a transaction
completed between SS8 Networks and Skyview Capital. NewNet CT is a privately held
company with headquarters in Connecticut. The LLC s investment is $750,000 placed by
Diamond Creek Capital.
                                                                                         11




                                        With over 40 shopping centers totaling 3.5 million
                                        square feet and 800,000 square feet of new retail
                                        development in Tulsa and the surrounding area,
                                        Walman Commercial Real Estate Services, L.L.C. has
built a reputation for experience, expertise, integrity and results. Walman Commercial Real
Estate Services, LLC s team approach and client-first focus means landlords can expect an
application of proven project leasing strategies and in-depth market knowledge in order to
maximize the value of their real estate to meet and exceed their retail objectives. Walman
Commercial Real Estate Services, L.L.C. also works with local and national retailers to
optimize their exposure and coverage within the Tulsa MSA. With a successful history of
project leasing and tenant representation, Walman Commercial Real Estate Services, L.L.C.
is committed to their client s long-term success. The LLC s investment (in the Elm Street
development in Jenks, OK) is $350,000.
                                       12




Investments by Industry and Location
                                                                                           13




Holding Company Operations

To ensure we can effectively meet our goals for growth, it is vital to have a strong executive
team in place. Our team complements each other and oversees internal controls, daily
operations, deal flow, and investments.

One of our fundamental goals is to position ourselves where the profits of the Osage LLC
support tribal government, employ Osage citizens, and our infrastructure.
This is only the beginning of our journey, but we firmly believe we have taken the
necessary steps to lay groundwork for a long and prosperous future.


   Osage, LLC Organization Chart
                                                                                                14




Business Units

                            The Palace Grocery Store

                                Built in 2001, this 8,420 square foot facility provides retail
                                grocery items for the residents in and around the city of
                                Fairfax, OK. The Palace offers a full line of groceries along
                                with a full complement of deli items plus a smoke shop. In
                                addition to offering these products to consumers directly,
                                The Palace also provides food and products for the Osage
Nation, Pawnee Nation, Otoe Nation, Fairfax Chamber of Commerce, Standing Bear Pow
Wow Committee, along with several other businesses in and around the Fairfax area.
Additionally, The Palace works with WIC, providing the recipients of WIC their food
products. The Palace was legally transferred to Osage, LLC on October 1, 2009. With the
transfer came 20 employees. The LLC has injected a total of $171,445 for operating
expenses. Over the next several months the LLC will be evaluating The Palace to make a
determination to hold or to sell this investment.

                                    Osage Gift Store

                                Osage Nation Gift Shop provides hard-to- find, quality
                                Native American jewelry, clothing, and art plus many more
                                items for the residents of Osage County. Offering a full line
                                of Pendleton shirts, jackets, and blankets, the Gift Shop is
                                able to meet many of your clothing needs. Additionally, the
                                Gift Shop is able to provide online viewing of the many
                                products we offer. Our goal at the Gift Shop is to meet our
customer needs by providing the high-quality products they demand. The Osage Gift Store
was legally transferred to Osage, LLC on June 15, 2009. With the transfer came 3
employees. The LLC has injected a total of $145,895 for operating expenses and the
purchase of Clifton s Gifts Store. Over the next several months the LLC will be evaluating
the Osage Gift Store to make a determination to hold or to sell this investment.
                                                                                          15




                                       Osage Data

                                       Osage Data is a professional consulting firm that
                                       focuses on providing information technology (IT)
                                       solutions. Working with 12 other tribes as part of the
                                       Intertribal Information Technology Company on an
                                       $88 million data conversion project and through
                                       specific teaming arrangements, Osage Data is
positioning to be an aggressive competitor in the information technology industry. Osage
Data is able to provide both products and services for: network systems, collaboration,
voice and video, security, wireless/mobility, enterprise system services and project
management. Osage Data was transferred in June 15, 2009. With the transfer came 13
employees. A Mentor-Protégé relationship has been formed between Osage Data and
Masterlink. This program is designed to equip key employees with marketing and
management assistance and training. Mentors provide technical and management
assistance, subcontract support, and assistance in performing prime contracts through
joint venture arrangements. When a company is small, the Mentor-Protégé Program can
provide the expertise of a large, experienced company to help it along with government
contracting while the mentor's expertise, resources and capabilities are made available.




                                     Tulsa Airpark

The main building, 88,655 square feet, currently houses the Million Dollar Elm Casino
Executive Offices, and there are additional storage and hangar buildings with 26,320
square feet for a total of 114,975 square feet. The Tulsa Police Department currently
houses the helicopter program inside one of the hangars. In 2009, an agreement was
reached with Walman Commercial Real Estate to manage the property and to increase the
number of tenants. Additionally in 2009, an agreement was reached with the WIC program
for them to occupy 1,600 square feet on the north end of the property. The Osage Airpark
currently has 16,000 square feet of storage space available, along with additional hangers.
This property is positioned well for additional economic development in manufacturing,
and energy industries. Tulsa Airpark was transferred in June 15, 2009.
                                                                                        16




Because Million Dollar Elm Casino and Osage LLC are both owned by the Nation but
advance different purposes, it is important that the lease agreement for MDE occupancy of
Airpark space come as close as possible to terms that would occur in an arms-length
market lease. The Nation expects MDE to generate cash flow and expects the LLC to
generate returns on the assets entrusted to it. Accordingly, aiming for a market benchmark
on lease terms minimizes the risk that the LLC will subsidize MDE or vice versa. The LLC
signed a lease agreement with MDE on July 1, 2009; MDE occupied 34,436 square feet; and
the LLC received lease payments starting in July 2009. When it became clear that MDE
needed more space and a greater build-out allowance, the lease was renegotiated. With the
advice of the Walman Group
regarding market comparables,
the second lease was agreed by
the parties on December 15,
2009 and awaits Congressional
approval before payments can
begin flowing. We respectfully
request the timely approval of
this agreement.
                                                                                                                                           17




Performance Metrics
                                                                   Osage, LLC
                                                     Returns on Invested Capital (unaudited)
                                                               from Inception to
                                                              December 31, 2009

                                                                                                                 Annualized   Weighted
                                                                                                                    Return     Average
                                                  Months                                               Return        Since    Annualized
                               Purchased   Sold    Held           Capital In            Return           %        Inception     Return
Passive Investments
  Diamond Creek Capital, LLC   15-Aug-09           4.5        $         750,000     $      40,834      5.4%        14.4%
  Haley Associates LP          11-Jun-09           6.7                  500,000            17,864      3.6%        6.4%
  Elm Street                   30-Nov-09           1.0                  372,488             1,758      0.5%        5.6%
                                                              $       1,622,488     $      60,456                               9.9%


Deposits
 Cash                          9-Mar-09            9.8                1,314,834            12,141      0.9%        1.1%         1.1%


Holding Company
 Operating Cap. + SG&A         1-Sep-08            16.0                618,332           (683,952)    -110.6%      -83.1%       -83.1%

                   SUBTOTAL                                           3,555,654          (611,355)     -17.2%                   -9.5%



Business Units
 Data, LLC                     10-Jun-09           6.7        $          99,162     $     (38,663)     -39.0%      -69.8%
 Gift Store, LLC               10-Jun-09           6.7                  210,999            (7,945)      -3.8%       -6.7%
 Palace, LLC                   1-Oct-09            3.0                  785,596           (91,030)     -11.6%      -46.5%
 Tulsa Airpark                 15-Jun-09           6.5                5,332,446           (99,449)      -1.9%       -3.4%
                                                              $       6,428,202     $    (237,087)                              -9.8%



                     TOTAL                                            9,983,856          (848,442)     -8.5%                    -9.7%




            See 2010 Annual Operating Plan for future projections of return

           Growth
From year to year, we anticipate reporting growth, since it is a major influence on the
returns to the Nation of our activities. However, as there were no cash-flowing activities in
2008, we do not have anything to report at this time.

           Employment
                                                    Osage Reservation                                Elsewhere
                          Osages                           18                                            0
                          Tribal                           3                                             2
                          Non- Tribal                      11                                            2
                          TOTAL                            32                                            4

           Economic Diversity
Part of the strategy for creating the LLC was to diversify away from gaming, but it is also
important to diversify within the portfolio. We expect to be in more than the three industry
sections shown in the chart on page 12 as the years progress.
18
19
20
                                                                                          21




Corporate Governance

The Osage LLC operates under one of the best systems of corporate governance in Indian
Country. Having said that, there will always be opportunities to adjust our practices within
the system as it is written on paper. This section reports on its functioning in 2009 and
recommends a few refinements.

   The Board

Unanimously, we continue to be pleased to serve as directors, not least because the Osage
Nation established such a solid system of corporate governance. That system not only
bolsters our own enthusiasm for contributing our time and experience to the LLC, but more
importantly, it makes recruiting high-caliber investors and personnel possible. At virtually
every one of our meetings since Carol Leese was hired, he has brought us excellent
presentations of investment opportunities, and this steady deal flow has been essential to
our success. Without a sound charter distancing us from elected leaders, we would not
present a credible face to investors.

In addition to hiring a CEO and approving the investments noted above, notable board
decisions include approving a limited waiver of sovereign immunity on a bank note for a
line of credit and approving the Airpark office lease with MDEC (which MDEC submitted for
additional Congressional approval). In 2009 we met 5 times in person and more than 22
times by teleconference.

Also unanimously, we respectfully request the re-appointment and confirmation of Paul
Bruce for a second term. His experience and expertise have been essential in energy-
related and general strategy.

   Board-to-Member Relations

The Board of Directors noted in 2009 that we could have notified the Member more often
in advance of making public announcements than we did. We intend to circulate to the
Speaker and Chief all briefs, bulletins, or press releases in advance of them becoming
public. The Member should have already begun receiving better notice of our public
information in 2010.

We will continue to circulate quarterly financial statements, and to present the annual
report and operating plan in early April in person as required by the Osage Nation Limited
Liability Companies Act. Consistent with our Articles and the 2009 Annual Plan, we expect
to be judged by the standards discussed in the section Measuring Against our Purposes.
                                                                                          22




   Committees
The board has also instituted a number of committees. The Communications Committee
(Iba, Bruce, Ricketts) aims to improve policies that inform the Member, Osage citizens, and
the public about the LLC. The Audit Committee (Taylor, Maker, Ricketts) selects, hires, and
supervises the independent audit firm. The Compensation Committee (Bruce, Ricketts, Iba)
will be evaluating incentives, compensation, and retention. The Board also created a sub-
board to oversee the 8(a) subsidiary currently applying for certification, Osage Contracting,
LLC (Ricketts, Iba, Taylor).

   CEO

The Board went to great lengths to recruit and retain a CEO with Indian Country experience
and a demonstrated record of accomplishment. Carol Leese s entrepreneurial initiative,
drive, commitment, and judgment continue to impress us, and we count ourselves
fortunate to have been able to persuade him to make the move to Osage.

Occasionally in 2009, his energies were diverted by ad hoc communications with individual
representatives of either Congress or the Executive Branch. Carol is an exceptional talent,
but not so exceptional as to be capable of serving two masters. Every time an ad hoc
communication comes in, he naturally and reasonably has to weigh its political meaning.
That is not good for business, but he is too professional to complain about it and too
diplomatic to push it off. Together we must lift that burden from him.

Accordingly, the Board respectfully requests a reduction in ad hoc communication between
individual representatives of the Member and the CEO. As well-intentioned as they have
been over the past year, those communications have been a problem. In 2010 the Board
will be monitoring communication as a management variable, both our own
communication with you as indicated above and your communication with the CEO.

Without exception, the Board members acknowledge the importance of formal
communication between the Board and the Member, and the Board expects to be held
accountable annually for corporate performance. From our perspective, last year was
fruitful in Board-to-Member communication, and we aim to continue that success in 2010
and improve upon it. The Board looks forward to strengthening that formal
communication while we insert ourselves more assertively between the Member and the
CEO.
                                                                                            23




   Capital and Personnel

Often in Indian Country, the systems of corporate governance are strained by conflict over
staff dismissals or capital investments/disbursements. Fortunately, 2009 had no such
disputes.
Our stance toward capital and dividends remains as follows:
1. To expect steady injections of capital annually at the time our results and plans are
   presented;
2. To remain open to the possibility of approaching the Member for an appropriation of
   more capital on an as-needed, project-specific basis; and
3. To begin to pay a dividend of 20% of net income as required by our Articles after five
   years of operation, that is, in 2014.
                                                                                         24




Board of Directors

                              Chairman of Board: Charles Maker
                   Mr. Maker, an enrolled member of the Osage Nation, has an extensive
                   background in the design and manufacturing of microwave electronic
                   components. He has a broad and through knowledge of microwave
                   components, electro-magnetic structures, and environmental issues.
                   Since 1996, Maker has worked as an Expert Engineer for Agilent
                   Technologies, Inc. (formerly Hewlett Packard Inc.) in Santa Rosa,
                   California.
                   Prior to joining Agilent Technologies, Maker worked for 13 years as a
                   Senior Staff Engineer for Microcourse, Inc also located in Santa Rosa,
California. Maker has also worked as a Staff Engineer for Avantek, Inc., as a Design
Engineer for Varian Associates and various other electrical/engineering positions at
renowned companies.
Maker attended San Jose State University with an emphasis on Projecting Management
training, Foothill College in California where he studied Mathematics and Microwave
Theory and Technique, and Oklahoma State University School of Technical Training with an
emphasis on electronics and electronic technology.

                           Vice Chairman: Mary Liz Ricketts

                  Ms. Ricketts currently serves as the Executive Director of the Housing
                  Authority of the Osage Tribe and has held this position for 22 years. Her
                  primary responsibilities and successes over her tenure have included the
                  construction of 180 single-family homes, 16 senior housing units along
                  with a community facility for Osage senior activities and the Title VI
                  nutrition program.
                  In 1998, she used her expertise for construction of a warehouse, a project
utilized by an Osage construction company for training in various construction related jobs.
Additionally, Ricketts has been responsible for property management of 650 leases with
options to purchase single-family homes and provided rehabilitation for 400 of these
homes. To date, 529 deeds have been issued.
Ms. Ricketts leadership lead to obtaining a Community Development Financial Institution
grant from the U.S. Treasury in 2003 which established the Osage Financial Resources, Inc.,
a program designed to provide revolving loans for home improvement. Additionally, in
2004, with low income tax credits, Ms. Ricketts oversaw the construction of a 30
townhouses apartment complex with a clubhouse and offices.
Ms. Ricketts is an enrolled member of the Osage Nation. Among her other activities she
holds the highest position a woman can hold culturally as she serves as head cook for the
Pawhuska I-Ion-schka committee. Ms. Ricketts has served on various local, regional and
national housing boards.
                                                                                         25




                               Board Member: Paul Bruce

                Mr. Bruce is an experienced petroleum engineer and oil & gas professional
                with a strong background in Project Management. He has over 35 years of
                experience in the Oil & Gas Industry. Most recently, from 2001 to 2008,
                Bruce served as President of AMVEST Osage, Inc., located in Skiatook,
                Oklahoma, where he successfully initiated, managed and grew coalbed
                methane focused oil and gas development from concept to startup to a
                mature gas producing project. Bruce retired from AMVEST Osage, Inc. in
                2008.
Prior to AMVEST, Bruce served as Project Manager for similar coalbed methane focused oil
and gas development projects for El Paso Production Company in Raton, New Mexico and
spent 24+ years in various positions for Pennzoil Exploration and Production Company.
Bruce graduated from The University of Texas Engineering School at Austin, Texas with a
B.S. Degree in Chemical Engineering. Bruce lives with his wife in Skiatook, OK. They
recently celebrated their 40th anniversary and have three children and four grandchildren.

                                Board Member: Skip Iba

                 Dr. Howard Skip Iba has been practicing orthodontics for over 35 years in
                 Tulsa, OK. Dr. Iba enjoys working with adults and children, helping them
                 achieve beautiful smiles. Dr. Iba graduated from Oklahoma State University
                 with his undergraduate degree and then enrolled in Baylor College of
                 Dentistry to earn his D.D.S. Following his time at Baylor, he went on to
                 puruse his Masters of Science Degree at the University of Texas Dental
                 Branch (Houston) Orthodontic Department.
Dr. Iba is a member of the American Board of Orthodontists, a Fellow of the International
College of Dentist, Past President of the Texas Orthodontic Study Club and Past President of
the University of Texas Orthodontic Department Alumni Association. He is also a member
of the American Association of Orthodontists, the Southwest Society of Orthodontists, the
Orthodontic Society and many more.
Dr. Iba also served as a Board Member for Holland Hall School. He is currently a Board
Member on the Tulsa Sports Commission and Osage LLC. He has been married for over 40
years, has two wonderful children and one fantastic granddaughter.
                                                                                            26




                             Board Member: Jonathan Taylor

                Mr. Taylor is an economist with expertise in natural resources, gaming, and
                American Indian development. He provides counsel to tribes and bands in
                the United States and Canada consisting of public policy analysis, strategic
                advice, and economic research. Taylor has authored or supported testimony
                in litigation and other public proceedings for a number of Native American
                groups.
                Mr. Taylor has assessed economic impacts of tribal enterprises (including
casinos), assessed tribal tax regimes, assisted in tribal institutional reform, provided public
policy analysis and negotiation support for resource development, valued non-market
attributes of natural resources, and educated tribal executives.
Mr. Taylor is the President of the Taylor Policy Group, an economics and public policy
consultancy. He also serves as a Research Affiliate at the Harvard Project on American
Indian Economic Development at the Kennedy School of Government, and a Senior Policy
Associate at the Native Nations Institute, Udall Center for Studies in Public Policy,
University of Arizona.
Mr. Taylor graduated with a Bachelor of Arts from Princeton University and a Masters in
Public Policy from Harvard University.
                                                                                         27




Holding Company Management Team

                          Chief Executive Officer: Carol Leese

                Mr. Leese has managed Osage LLC since March 2009 and brings more than
                twenty years of business development experience to Osage LLC. Most
                recently, Leese served as CEO of the Forest County Potawatomi s
                PBDC. While at PBDC, Leese was instrumental in the acquisition of five
                companies and grew revenues six-fold annually from 2006-2009. The
                corporation started with one employee and now has close to 220
                employees in 22 states.

Prior to joining PBDC, Mr. Leese served as CEO for the Absentee Shawnee Economic
Development Authority in Shawnee, Oklahoma. Before working with Native nations, Leese
worked as President of a dot-com company in the gaming industry. In addition, he has 13
years of experience in the healthcare industry working with emergency room physicians.

Leese holds a Bachelor of Science in Business and a Masters of Business Administration
from Oklahoma City University.


                                 Controller: Bob Petre

                 Mr. Petre brings more than 20 years of experience in finance and
                 accounting to Osage LLC. Most recently Mr. Petre worked as a controller
                 for a Tulsa law firm where he over saw the accounting department and
                 was inspirational in reengineering the finance functions and internal
                 controls which resulted in improved cash flow and upgraded procedures.
                 Prior to working as a controller, Mr. Petre served as a Senior Financial
                 Analyst for a Fortune 500 company where he generated a 30% ROI
                 through successful financial analysis/profitability planning for two
startup subsidiaries and managed a $17 million operating budget along with a $50 million
capital budget. Mr. Petre also served as a Public Accountant.

Mr. Petre holds a Bachelor of Science degree in Accounting/Business Administration from
Oklahoma Christian College and holds a Masters of Business Administration from
Oklahoma City University.
                                                                                         28




                         VP of Sales & Marketing: J.R. Hurt, MBA

                Mr. Hurt, a native Cherokee, brings more than 13 years experience in
                business development, sales & marketing and administration plus 8 years
                of hands-on clinical care in the healthcare industry. Prior to joining Osage
                LLC, Mr. Hurt served as the VP of Business Development for a home
                health, hospice, and long term care company where he was responsible
                for growth through sales and marketing plus acquisitions which resulted
                in a 55+% increase in gross revenues. In addition, he has served in various
                roles for both privately held and publicly traded organizations and with
operations in multiple states.

Mr. Hurt holds a Bachelor of Science in Sports Medicine degree from Tulsa University and a
Master of Business Administration from the University of Phoenix.


                             Executive Assistant: Kim Noble

                 Ms. Noble, a native Chickasaw, brings 12 years experience in back office
                 operations such as collections, payroll, system enhancements, and finance
                 to the Osage LLC team. Previously, Ms. Noble worked as a Revenue
                 Analyst where she recovered monies in disputes during a 12 month
                 period while simultaneously enhancing the human resource operations
                 that lead to a positive impact to the bottom line. Additionally, Ms. Noble
                 has experience in loan processing, credit managing, and client customer
                 service.

Ms. Noble graduated from Oral Roberts University with a Bachelor of Science degree in
Business Management.

				
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