Darholy Financial Services

Darholy Financial Services

An Independent Insurance Marketing Company

Fil Ordonio – CEO-Founder

Simeon Marcial – Co-Founder

Tou Yeu Yang – President

Almaida Marcos – VP O&P

Edwin Calucag – VP M&T

1.Executive Board Meeting at the White House was called to order on March 28, 2010 at 1530 hours. CEO Fil Ordonio conducted roll call.

Board Members Present:

Fil Ordonio

Simeon Marcial

Tou Yeu Yang

Almaida Marcos,

Edwin Calucag

Evangeline Booth.

Absent: None

2.Consent to Calendar Presented by Fil Ordonio - The DFS company structure ”Who We Are”.

3.Agenda:

A: Tax-Free Retirement Books – Fil Ordonio made a motion to discuss the purchase of this book; motion seconded by Evangeline Booth. Simeon Marcial recommended purchase of 50 each. It will cost the company $20.00 each. The board approved the purchase of 50 books.

Evangeline Booth queried the legal aspect of the sale of this book in the company’s website. No legal issue was noted. Ed Calucag informed the board members that these books are not to be given or handed-out after a tax-free retirement presentation in the states of New York and Utah.

B: DFS Value Per-Share. Fil Ordonio noted that the current per share value of DFS is $2,000.00. Ed Calucag asked how the company arrived at such a valuation.

Fil Ordonio explained that the total amount spent in the set-up/establishment of the company was used as a measure to attach the value per share. Further study is underway to adopt the P/E ratio (price-to-earnings ratio), a measure of a price paid for a share relative to the annual net income or profit earned by a firm or company. The board approved the initial and present value per share while awaiting the result of the study

C: Recruiting – Fil Ordonio asked Almaida Marcos (VP O&P) for her suggestions and or recommendations on recruiting. Almaida stated that the company started with an impressive ways in bringing in new agents/representatives and recommended to continue the process and that any change will be duly noted.

Ed Calucag asked about the initial and one-time representative application fee of $199.99 and the optional fee of $65.99 for Errors & Omission, continuing education and license renewal fee. The board understands the use of the optional fee and was further informed by Fil Ordonio and Simeon Marcial of the use of the application fee of $199.99. Each paid representative will receive a Tax-Free Retirement book and the company’s training CD. The remaining amount will be used to defray company expenses and operational costs. Twenty percent (20%) of the net profit will be distributed as follows: ten percent (10%) to the company’s emergency fund and ten percent (10%) to profit sharing plan for the top producers and top recruiters. Profit share amount or percentage for each producer and recruiter will be determined and discussed at a later meeting.

D: Flagship Product – DFS is directly contracted as an Independent Marketing Organization (IMO) of Conseco. Fil Ordonio explained DFS’s contractual obligation with Conseco, in that the company should market Conseco’s Life Options IUL (Indexed Universal Life) as its flagship product. Simeon Marcial and Fil Ordonio explained the similarities, features and benefits of Conseco’s Life Options and LSW’s Paragon. Almaida Marcos stated that as a company we must always be cognizant of our “client first,” core value, in that we provide our clients the best product suited for their need. Fil Ordonio recommended the primary use of Conseco with its various products designed to meet the needs of our niche market. In the absence of Conseco product that’s a better fit for a particular clients need other companies will be offered. The board agreed; however, a vote was not conducted which company and product will be the flagship.

4.Financial Report- DFS currently has a business balance of $4,097.00 reported by Tou Yeu Yang

5.Additions to Agenda:

A: DFS Website – Almaida Marcos recommended that our company should only have financial services reflected on its website. Ed Calucag stated that it has been fixed.

Fil Ordonio is currently the web master and with the advice of the VP O&P, VP M&T and with the Terms and Conditions of the use of the website, Fil Ordonio will adjust on as need basis.

B: Dance Lesson – Dance lesson was removed from one of the rewards for an agent who has three (3) paid recruits. Dance lesson will be offered free of charge instead by founders Fil Ordonio and Simeon Marcial.

C: Contest – The upcoming contest for the San Diego Harbor View Lunch Cruise. Qualifications are three (3) direct recruits, three (3) sales, 12 hierarchy recruits, $10,000 hierarchy annualized premium started on February 18 thru April 15, 2010. Email was sent to all DFS agents/associates of this contest. The Palm Desert Big Bang Convention will be open for registration by April 1, 2010; an email to follow on registration procedure.

D. Compensation System – Almaida Marcos brought the issue of how competitive the DFS compensation grid compared to other insurance marketing companies. Simeon Marcial reiterated that DFS’s compensation system is the best in the planet!

6.Consideration of items for future meeting:

A: Share-Cost review

B: Marketing and Training – Edwin Calucag mentioned about record of contacts Agents and Clients.

C: Operations and Development – Almaida Marcos mentioned about company logo and uniform.

7. Adjournment:

Next Board Meeting will take place Saturday, April 24, 2010. Time and place will be announced. The board meeting was moved for adjournment by Fil Ordonio and seconded by Ed Calucag. Meeting adjourned at 1630 hours.