Meeting between Steve, Chuck, and I dealing with options for the multi member LLC or adilas trust. We started out and Steve was still on a call. I popped into my notes from yesterday and also showed Chuck a spreadsheet that I was messing with to calculate salaries and guaranteed payments. We ended up in a great discussion that covered a number of topics. We were drawing, doing scenarios, and throwing questions back and forth. Nice interchange between all of us. Fun stuff. Here are some my notes:

- Time and Money - resources and adequate compensation for effort or time.

- How are taxes going to work? What is the timing? What if one of our guys/gals already has a business, what happens there? Do we need to change things after we get this year's taxes done and/or could it be at any time?

- If owners and percentages, what about company loans or loans being pulled out by the individual members? Meaning, say Chuck or someone was trying to buy a house. They are required to get all profit and loss statements and any liens or outstanding items or other debts from the company. How do percentages play into that? Looking down the road a bit. Chuck just wants to make sure that any company debt (say on adilas' side) won't affect him and vice versa.

- Question from Chuck - Do write offs take place on the adilas entity (business) or on the other outside or sub-contractor level (their personal business)?

- Chuck and Steve were talking about flex time, vacation time, sick time, etc. Possibly treat this like a mini account of sorts (like loyalty points). We would need to track this and get weekly updates from our guys and gals. We could keep really good records as this would eventually be tied to a monitory value.

- Dealing with scheduling... we could potentially have our own little scheduling app that shows who is doing what and who is working and who is off. Coordinating schedules to improve communication and make sure that we have coverage.

- Steve was talking about levels of write offs for each level of person - employees basically don't get much, 1099 and sub-contractors get some, and owners potentially could get even more (based on by laws and requirements, in writing as terms or business procedure docs). As you go up the levels, the write off benefits get better and better.

- Light talks about retirement plans and continuing guaranteed payments even through retirement (semi or full).

- Steve wants to keep the team as small as possible and maximize the profits. He also wants to work on other perks and deductions.

- We are trying to setup a community type business model.

- Back to flex time and vacation time - the ideal would be about 14 days off of paid flex time or vacation time per year.

- What if someone is not performing? Tye could work to make it up, get fired, renegotiate contract hours, change goals, and reset expectations.

- If someone is really struggling and it is out of their control, there may be a level of mercy that needs to be extended.

- We talked about a possible cap on accumulated flex hours. We talked about a range of between 500 and 750. At a 30 hour work week, that is between 4-6 months worth of accumulated flex hours.

- We talked about death, retirement, and how certain scenarios would play out. That still needs some loving but in death, a spouce or other stated person could keep receiving payback until the flex hours were diminished or used. In retirement, the person would keep drawing until the flex hours were used up and then real retirement benefits would kick in. Basically, they could say that they are retiring, but official retirement wouldn't start until all of the flex hours were paid back (get them back down to 0 flex hours).

- Steve would like to look into other retirement options for key persons. In another meeting, we talked about extending certain values for 20 years after the death of a member or whatever. Still up in the air. We could also figure out what the value of the shares (percentages) are worth and then make a payoff or buy back plan that would serve as a form of payment. Basically, a way to sell the shares back to adilas, if they wish.

- Our model is built on a reoccurring revenue model.

- Trying to avoid the master/slave type relationship - they were talking tons about employer/employee type relationships - more of a community or family

- Possible bonuses based on profits

- Birthdays and extra flex time - just having fun

- We can write the rules - what do we want to do and/or have?

- There has to be accountability of each person

- Chuck and Steve were going over options - Say there was a sum of money - where would it go and/or how would it be distributed? Bonuses, perks, savings, nest egg, re-invest, improvements, maintenance, updates, tax liability coverage, etc.

- Ownership and potential are big motivating factors for us to make it work

- The ideal would be a 4-day work week or a smaller or below 40 hour work week.

- On tech support and other services, we may need to coordinate days off and make sure that we have sufficient coverage

- Huge team effort - communications - community effort

- We could automate some of the flex time processes and procedures - we are a software company - :)

- We could also use certain internal time clocks to help capture certain data points

- Concepts of the adilas trust and allowing things to continue onward and keep things going over time.

- Sufficient for our needs

- We have one of the best teams that we have ever had - keep a good core team

- On the application side, keep making things smoother, better, and taking less clicks to get things done.

- As part of the conversation, Chuck was offering some help on the management side of things. He has some untapped skills in management, project coordination, and general business skills.

- Steve was expressing some ideas of offering basic business seminars and helping people learn good skills in their business. We could use adilas as part of our demos and training events. Show what is a best practice and how it all works. This could be really fun. Almost more of a focus on concepts vs products - of course, we could use our product to show the concepts.

- Just a couple of ideas - after the meeting was over - if you get a percentage gifted to you, let say that you can't sell it for at least a year. This could be a holding or maturing type timeframe. Another idea is if you sell a percentage, adilas gets first dibs. If the sale of the percentages is extended to an outside party, adilas would like to have some say over that and also be able to issue a processing fee of $1,000 or more to resubmit percentages to the state and what not. Some sort of compensation for work that needs to be done in order to keep everything up to date and fully legal. If shares are being sold to multiple persons, maybe fees per person to help cover overhead, paperwork, and refiling with the state. Just some ideas.