Management Philosophy

Because the movie business is extremely people-intensive, Matrixx Entertainment places high emphasis on the training, quality and value of human resources.

Because people in the movie business deal with extremely complex, exquisit and often expensive artistic and business structures, Matrixx Entertainment also places high emphasis on protecting the artist and the executive from suppression and invalidation of honest effort.

In order to keep costs at a reasonable level in the early stages of development, many MEC posts are being covered by new people interested in entering entertainment and mass communications. We have found that an enthusiastic group of well trained individuals operating under the guidance of a core of seasoned owner/professionals often deliver a more quality, cost-effective product than hiring only the "best people," "name talent" or high-priced union personnel.

This is not to say that the "best people," "name talent" and "union personnel" are not valuable and worth the allocation, it is only saying that if the best cost more than you can afford at a given time, work with and train new people, who have just as much potential to be tomorrows "best" and hire the best, names and union people as you can and need to.

The Company recognizes that even "experienced" individuals, trained in other companies, unless trained specifically in the management techniques of the Company, may mean loss and confusion, drained finances or no viable product.

Matrixx Entertainment makes no attempt to train or define "job descriptions" for writers, actors, musicians, composers, artists, attorneys, accountants, broker-dealers, word clearers or other such professions. This we leave to the professionals who know best how to do such training.

We do however, make every effort to define operating and production positions for executives, staff and crew as they relate to our specific products, efficiency and company structure. Thus all posts for such positions are carefully spelled out in 98 proprietary job description booklets which define the exact duties and responsibilities of the post, the products and/or services required, "how-to" memos and all communication and ethics policies connected with the post and the Company.

In doing this, we have endevoured to designed the company to be of a flat organizational structure with no more than five layers of management and open communications to and from any level, division or department. Open communications channels are more important than authoritarian reporting channels at Matrixx Entertainment.

All of the company's management is project-oriented (and object-oriented) except where shared resources realize economies of scale.

Production and operating performance of Company employees is monitored through a specially developed system of statistics. Frequent checkouts and examinations are given to Company personnel to ensure career advancement and the ability to apply job description materials relating to each post. To reward study and performance, we have a dedicated position called, Validator, who's sole responsibility is to walk around the company with a wad of cash, warrants and other prizes and reward execllence/rising stats on the spot "beyond the employee's wildest expectations."

We attempt to promote within but seniority is no guarantee of position when critical performance is necessary for the quality of the the product or survival of the company.

Anyone can move from one post to another anytime they wish so long as they train for the post they are to assume and turn over their post in an orderly fashion to another properly trained individual.

For those individuals who feel they can no longer "grow" as an employee or independent contractor with Matrixx Entertainment, the Company offers, through Mini Mogul Enterprises, the opportunity to form their own autonomous movie company. This is the first movie "franchise" program for such individuals, as well as outside entrepreneurs, who want to produce features with less risk.

Developing Talent and "Stars"

There are thousands of pictures that have grossed over $20 million dollars with no Stars involved. For this reason, and other reasons described above, the Company will not rely on Star casts "just to minimize risks."

From a study of the "Old Studio System" that used to operate under moguls such as Jack Warner, Darryl Zanuck, Louis B. Mayor and Irving Thalberg, we know that "Stars" are proposed and developed by producers but accepted and disposed of by the public.

The Company intends on addressing the vast pool of undiscovered talent and developing its own stars under a system that is both fair to the talent and to the Company.


The Company operates seven divisions which have the following purposes:

The Administrative Division (Div 1), is responsible for establishing the physical office and production space as well as all phone, computer and transportation systems. This division administeres the posting of all non-production positions.

The Quality Control Division (Div 2), known as Mini Mogul Enterprises (and anticipated to d/b/a or own Movie Pubs), is responsible for training Company executives, staff and crew, selling courses and books, handling ethics matters, maintaining the Company library and authorizing Matrixx "Franchises."

The Finance Division (Div 3), is responsible for coordinating all financial activities of the Company as well as accounting and safeguarding its assets. This division establishes and oversees all collection systems and reports equally to the Stockholders (via the Board) and to Project Profit Participants.

The Development Division (Div 4), known as dNa DevelopMent, is responsible for acquiring, developing and selling literary properties.

The Production Services Division (Div 5A), known as BackBone Enterprises, is responsible for , providing technical assistance and maintenance to the Company. BackBone also provides consulting, internet connectivity and operating post-production facilities the company and outside clients.

The Production Division (Div 5B), known as Matrixx Productions, is responsible for physically producing movies. Except for the VP Production's office and staff, this division is not considered "Operations." Each production has its own separate staff and crew in addition to MEC Operations personnel.

The Marketing Divisions (Div 6A), known as Matrixx Releasing, oversees and coordinates all marketing activities for the Company's products. This division licenses the Company's motion pictures to distributors and arranges for pre-sales. Div 6B, known as Matrixx Internet Distribution, oversees and coordinates all marketing activities as such relate to the sub-licensing of motion pictures and the subsequent release over the Internet.

The Executive Division (Div 7), supervises and coordinates the activities of the above divisions to attain Company goals and products for the purpose of audience enjoyment as well as increased participant and stockholder value.

Future Personnel Requirements

The Company has planned out the orderly expansion of its Operations Personnel five and ten years into the future to move towards 5 senior executives, 6 middle managers, 28 department heads and about 130 staff members. Each feature will employ between 100 and 400 people as production Talent, Staff and crew. The Company's last feature, employed 103.

The Company believes that higher quality screenplays can be created by employing some Writers and Talent on a long-term, staff basis while providing them with freedom to work on outside projects.

Over the long term, it is the Company's goal to employ talent, staff and crew who are the best in their respective fields while at the same time continue its program of training personnel to the level of quality demonstrated by top directors, actors and company executives.

© 1996 - 1999 by James R. Jaeger II
All Rights Reserved