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H a y n e s a n d B o o n e, L L P

M E M O R A N D U M

Date: April 24, 2001

To: Bobby Eberle

Company: GOPUSA.com (“Company”)

From: Chris Wolfe

Subject: Organization of the Company

Bobby, some general principles for organizing the Company follow. These principles are

drawn heavily from Command at Sea, a handbook for commanding officers published by

the Naval Institute that accumulates 225 years of naval experience.

Overall organization checklist:

1. Prepare a statement of the Company’s objectives and tasks.

2. Familiarize your leaders with the principles of the Company.

3. Group the Company’s functions logically.

4. Prepare manuals, charts and functional guides.

5. Establish and document Company policies and procedures.

6. Train your leaders concerning their individual and group

responsibilities.

7. Set up control measures to ensure the achievement of the

Company’s objectives.

Guidelines:

1. Unity of Report. Each person should report only to one superior. One person

should have control over each segment of the Company. Lines of authority

should be simple, clear-cut and understood by all.

2. Functional Assignment. Functions should be grouped together, with individuals

assigned to groups in accordance with their abilities.

3. Span of Control. A manager should be responsible for from three to seven

individuals. The span of control should be varied according to the type of work,

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“Organization” means the orderly arrangement of materials and personnel by

functions.

“Sound Organization” is essential for good administration. Organization should

be designed to carry out the objectives of the enterprise.

“Accountability” means the obligation of the individual to render an accounting

of the proper discharge of her responsibilities. This accounting is made to the person to

whom she reports. An individual assigned both responsibility and authority also accepts

a commensurate accountability, which is the requirement that she answer to her

superior(s) for her success or failure in the execution of her duties.

“Authority” means the right to make a decision in order to fulfill a responsibility,

the right to require action of others, or the right to discharge particular obligations placed

upon the individual.

“Delegation” means the right of a person in authority to send another to act or

transact business in her name. Authority may be delegated, but responsibility may never

be.

“Duties” means the tasks which the individual is required to perform.

“Responsibility” means accountability for the performance of duty.