Max Burton Enterprises, Inc. - Page 6

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               Ms. Burton established and was personally involved in the              
          operation of petitioner’s public relations division, creating               
          various advertising and sales-related literature and other                  
          promotional materials.  She designed the packaging material for             
          petitioner’s products and promoted petitioner to various national           
          and regional newspapers.  As petitioner’s spokespersons and                 
          goodwill ambassadors, Ms. Burton and Denovan planned and                    
          personally participated in national trade shows to promote                  
          petitioner’s products since 1987.                                           
               Ms. Burton implemented a strategic change in petitioner’s              
          marketing focus.  Prior to her becoming president, petitioner had           
          sold its goods primarily to small giftware shops.  She eliminated           
          petitioner’s catalog/retail sales and concentrated on selling               
          petitioner’s products on a wholesale basis.  To implement the               
          change in marketing focus away from the small giftware shops to             
          the large national department stores, new sales representatives             
          were required.                                                              
               Denovan replaced petitioner’s existing force of giftware               
          sales representatives with houseware sales representatives.                 
          Denovan assembled a nationwide team of sales representatives,               
          managed through a network of sales organizations.  Ms. Burton and           
          Denovan negotiated commission agreements with petitioner’s sales            
          representatives and agreed to pay the sales representatives a               
          commission of up to 15 percent.  As a result of its change in               

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Last modified: May 25, 2011