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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON _______________
File No. __________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1
FORM SB-2
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
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AMERICAN ACCESS TECHNOLOGIES INC.
---------------------------------
(Name of small business issuer in its charter)
Florida 3661 59-3410234
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(State of Incorporation) (Primary Standard (IRS Employer
Industrial Classification I.D. Number)
Number)
238 N. Westmonte Drive, Suite 210, Altamonte Springs FL 32714 (407) 865-7696
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(Address and telephone number of principal executive offices)
238 N. Westmonte Drive, Suite 210, Altamonte Springs, FL 32714
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(Address of principal place of business)
Victor Murray, President
American Access Technologies, Inc.
238 N. Westmonte Drive, Suite 210
Altamonte Springs, FL 32714
(407) 865-7696
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(Name, address and telephone number of agent for service)
Copies to;
Joel Bernstein, Esq.
P. O. Box 330072
Miami, FL 33233
(305) 751-3008
Fax:(305) 751-4928
Approximate date of proposed commencement of sale to the public: From time to
time after the Registration Statement becomes effective.
If any of the securities being registered on this form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, check the following box. /X/
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<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE
==================================================================================================
Proposed
Amount of Proposed Maximum
Shares Maximum Aggregate Amount of
Title of Each Class of To be Offer Price Offering Registration
Securities to be Registered Registered Per Unit(1) Price Fee
- --------------------------- ---------- ----------- --------- ------------
<S> <C> <C> <C> <C>
Common Stock 1,030,000(2) $11.68 $12,030,400 $3,645.58
Warrants to purchase 630,000(3)
Common Stock
==================================================================================================
</TABLE>
(1) Estimated solely for purposes of calculating the registration fee based
upon the average of the bid and asked price in the over the counter
market on December 19, 1997.
(2) Includes 630,000 shares issuable on exercise of Warrants. The number of
shares and warrants may be increased by operation of anti-dilution
provisions contained in the Warrants.
(3) No fee pursuant to Rule 457(g).
The Company hereby amends the Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant shall
file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Acts of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
<PAGE> 3
AMERICAN ACCESS TECHNOLOGIES, INC.
1,030,000 SHARES OF COMMON STOCK
630,000 WARRANTS EXPIRING FEBRUARY 11, 2000 TO PURCHASE
630,000 SHARES OF COMMON STOCK
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY
THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THESE SECURITIES INVOLVE A HIGH DEGREE OF RISK. See "Risk Factors"
beginning on page 5 for a discussion of certain risk factors that should be
considered by prospective investors of the securities offered hereby.
The security holders named under "Plan of Distribution - Selling
Security Holders" have advised the Company that they may from time to time sell
or otherwise dispose of Warrants to purchase Common Stock of the Company or
shares of the Common Stock to which this Prospectus relates (of which 630,000
shares are issuable upon exercise of the Warrants) at prices then prevailing in
the over-the-counter market or otherwise at prices then obtainable. The Company
will not receive any of the proceeds from the sale of Common Stock or Warrants
by such security holders other than amounts received upon exercise of the
Warrants in accordance with their terms (see "Description of Securities -
Warrants" elsewhere in this Prospectus). Such security holders, and any
securities dealers or brokers to or through which they effect sales of the above
shares of Common Stock or Warrants, may be deemed to be underwriters with
respect to such securities within the meaning of the Securities Act of 1933, and
any profits realized by such persons may be deemed to be underwriting
commissions.
The Company is not aware of any public market for the Warrants of the
Company.
The Company's Common Stock is quoted on the OTC Electronic Bulletin
Board under the symbol AATK. On April 13, 1998, the closing bid quotation for
the Common Stock on the OTC Electronic Bulletin Board was $12.00.
Costs and expenses in connection with the registration of the
securities offered hereby, estimated at $27,061, are to be borne by the
Company. Brokers' commissions, taxes and other selling expenses are to be borne
by the selling security holders and are not expected to exceed normal selling
expenses for sales in the over-the-counter market.
THE DATE OF THIS PROSPECTUS IS _________________, 1998.
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PROSPECTUS SUMMARY
The following summary is qualified in its entirety by reference to the
more detailed information and the financial statements, including the notes
thereto, appearing elsewhere in this Prospectus.
SECURITIES REGISTERED
<TABLE>
<S> <C>
Shares of Common Stock which may be offered by the
Selling Security Holders.............................................1,030,000
Warrants which may be offered by the Selling Security Holders............630,000
Shares of Common Stock to be outstanding assuming all shares to
which this Prospectus relates are sold...............................3,600,000
</TABLE>
BUSINESS
The Company is a development stage Florida corporation which was
incorporated on October 21, 1996 to develop, design and manufacture products for
the telecommunications industry. The Company's first product, a zone cabling
termination cabinet, to facilitate the laying of cable for telecommunications
systems, specifically designed for the telecommunications cabling approach known
as "Zone Cabling", introduced in January 1997. The Company's independent
certified public accountants have included an explanatory paragraph in their
report on the Company's financial statements to express substantial doubt as to
the Company's ability to continue as a going concern.
The telecommunications industry in general is one that is continually
and rapidly expanding. Trends toward increased high speed data systems,
corporate networking and desktop personal computing, have created the need for
higher speed cabling, new ways to connect cabling and higher speed switching.
The Company's Zone Cabling Termination Cabinet ("ZCTC") was introduced
to the telecommunications industry in January 1997. This product acts as a
mini-telephone closet that fits into the ceiling the grid system and is
supported to the building structure by threaded rods, disguising its appearance
and providing a high degree of concealment, esthetic appearance as well as
security. The cabinet's design allows the mounting of telecommunications
apparatus on a removable equipment mounting plate located on the enclosure
access door. The product acts as a consolidation, distribution and termination
point for the system, as well as a multi-user outlet. Use of the ZCTC in
conjunction with "Zone Cabling" facilitates installation and moves, adds and
changes.
The Company outsources its entire product prototyping, production,
manufacturing, assembly and packaging operations to a singe independent
supplier.
The Company's goal is to become a leading supplier of structured
telecommunications cabling system components. The Company's offices are located
at 238 N. Westmonte Drive, Suite 210, Altamonte Springs, FL 32714. Its telephone
number is (407) 865-7696.
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DIVIDENDS
The Company has not paid any cash dividends and does not expect to pay
cash dividends in the foreseeable future.
SUMMARY FINANCIAL INFORMATION
The summary financial data set forth below is derived from and should
be read in conjunction with the financial statement, including the notes
thereto, appearing elsewhere in this Prospectus.
Statement of Operations Data:
<TABLE>
<CAPTION>
Year Ended
December 31
-----------------------
1997 1996
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<S> <C>
Revenues 231,622 --
Loss from continuing operations (426,455) (66,248)
Income from discontinued operations -- 4,606
Net (loss) (426,455) (61,642)
Net (loss) per common share (.14) (.02)
Weighted average number of shares 3,083,000 2,850,000
</TABLE>
Balance Sheet Data:
<TABLE>
<CAPTION>
December 31, 1997
--------------------------------------
Actual
--------
<S> <C>
Working capital $378,299
Total assets 540,582
Total liabilities 100,825
Stockholders' equity 439,757
</TABLE>
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RISK FACTORS
The Securities offered herein involve a high degree of risk.
Accordingly, before deciding to purchase, investors should carefully consider
the following risk factors along with the other matters discussed herein.
LOSSES INCURRED DURING START-UP OF OPERATIONS; MODIFIED ACCOUNTANT'S
REPORT. The Company began its business described herein in October 1996 and has
recently introduced its first
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product. As with many start-up company's, expenses are currently in excess of
revenues as the Company continues to invest its resources into continuing
product development and marketing. Since inception through December 31, 1997,
the Company has a cumulative loss of $488,097. There was a net loss of $426,455
for the fiscal year ended December 31, 1997 and a net loss of $61,642 for the
fiscal year ended December 31, 1996.
As of December 31, 1997, the Company had working capital of $378,299.
Although the Company's working capital requirements for the next 12 months will
be substantially dependent upon sales activities, the Company's internal
projections call for working capital requirements of approximately $692,000 for
such period. Accordingly, the Company is subject to the risks of any new
business and the likelihood of success of the Company must be considered in
light of the problems, expenses, difficulties and complications of a new
business and the highly competitive environment in which the Company operates.
There can be no assurance that the Company will be able to achieve and sustain
profitable operations in the future. The Company's independent certified public
accountants have included an explanatory paragraph in their report on the
Company's financial statements to express substantial doubt as to the Company's
ability to continue as a going concern. See "Financial Statements" contained
herein.
NEED FOR ADDITIONAL FUNDS. The Company will require substantial
additional funding to further develop its products, marketing and operations.
There can be no assurance that such additional funds would be available when
needed or that they would be available on attractive terms or that raising
additional funds would not result in substantial reduction in the value of the
Company's shares.
NO ASSURANCE OF COMMERCIAL SUCCESS; UNCERTAINTY OF MARKET ACCEPTANCE.
The Company's products compete in the highly competitive market for
telecommunications products. The Company's prospects for success will therefore
depend on its ability to successfully market its products to distributors who
may be inhibited from doing business with the Company because of their
commitment to other products. As a result, demand and market acceptance for the
Company's produces is subject to a high level of uncertainty. The Company
currently has limited financial, personnel and other resources to undertake the
extensive activities that will be necessary to produce and market its products.
There is no assurance that the Company will be able to formalize expanded
marketing arrangements or that its marketing efforts will result in substantial
additional revenues. See "Business".
DEPENDENCE UPON KEY MANAGEMENT. The Company is dependent upon the
members of management set forth herein. Accordingly, the Company will be
adversely affected if the services of such persons ceased to be available to the
Company.
COMPETITION; PRODUCT OBSOLESCENCE. The markets for the technology and
products developed by the Company are characterized by rapid changes and
evolving industry standards often resulting in product obsolescence or short
product life cycles. As a result, certain companies may be developing
technologies or products of which the Company is unaware which may be
functionally similar, or superior, to some or all of those being developed by
the Company. These companies may have substantially greater financial,
technical, personnel and other resources than the Company and may have
established reputations for success in developing and sales of their products.
The ability of the Company to compete will depend on its ability to continually
enhance and improve such products and technology, to adapt its products to be
compatible with specific products manufactured by others, and to successfully
develop and market new products and technology. There is no assurance that the
Company will be able to compete successfully, that its competitors or future
competitors will not develop technologies or products that render the
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Company's products and technology obsolete or less marketable or that the
Company will be able to successfully enhance its products or technology or adapt
them satisfactorily.
PROTECTION OF PROPRIETARY INFORMATION. The Company has applied for a
patent on its Zone Cabling product. There is no assurance that any patents will
be obtained. If obtained, there is no assurance that any patents will afford the
Company commercially significant protection of its technologies or that the
Company will have adequate resources to enforce its patents. The Company also
intends to seek foreign patent protection. With respect to foreign patents, the
laws of other countries may differ significantly from those of the United States
as to the patentability of the Company's products or technology. Moreover, the
degree of protection afforded by foreign patents may be different from that in
the United States. Patent applications in the United States are maintained in
secrecy until patents issue, and since publication of discoveries in the
scientific or patent literature tends to lag behind actual discoveries by
several months, the Company cannot be certain that it will be the first creator
of inventions covered by any patent applications it makes or the first to file
patent applications on such inventions.
POTENTIAL LACK OF LIQUIDITY. The Company's common stock currently
trades on the OTC Bulletin Board under the symbol: AATK. Stocks trading on the
OTC Bulletin Board generally attract a smaller number of market makers and a
less active public market and may be subject to significant volatility. Sales
of substantial amounts of shares of the Company's common stock in the public
market pursuant to exercise of the warrants herein and additional capital
financing transactions which may be undertaken by the Company in the future
could adversely affect the market price of the Company's common stock and the
Company's ability to raise equity capital in the future and may make it more
difficult for an investor to liquidate his investment in the Company.
NO CASH DIVIDENDS. The Company has not paid, nor does it presently
contemplate the payment of, any cash dividends on its Common Stock.
USE OF PROCEEDS
No assurance can be given that any or all of the Warrants will be
exercised. Accordingly, as far as can be determined as of the date of the
Prospectus, the proceeds received by the Company upon any exercise of Warrants
will be used for general corporate purposes and for working capital which may
include payment of salaries, rent, research and development, purchase of
inventory and marketing expenses. Such proceeds would aggregate $5,040,000 if
all the Warrants were exercised in full.
MARKET FOR SECURITIES
The Company's Common Stock is traded in the over-the-counter market and
is included in the NASD Electronic Bulletin Board under the symbol AATK. Trading
began on August 15, 1997.
The following is the range of high and low bid prices for the Company's
Common Stock for the periods indicated
<TABLE>
<CAPTION>
High Low
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<S> <C> <C>
August 15, 1991 through
September 30, 1997 $7.625 $ 2.50
October 1, 1997 through
December 31, 1997 $12.00 $ 7.20
January 1, 1998 through
March 31, 1998 $12.25 $11.00
</TABLE>
The above represents inter-dealer quotations which do not include
retail mark-ups, markdowns, or commissions, and do not necessarily represent
actual transactions.
The approximate number of record holders of the Company's Common Stock
as of December 3, 1997 was approximately 41.
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RECENT FINANCING
Since September 30, 1997, the Company issued 86,667 shares of its
Common Stock to holders of outstanding Common Stock Purchase Warrants and
received proceeds of $260,000.
DIVIDEND POLICY
The Company has not paid any dividends on its Common Stock, and it is
not anticipated that any dividends will be paid in the foreseeable future. The
Board of Directors intends to follow a policy of retaining earnings, if any, to
finance the growth of the Company. The declaration and payment of dividends in
the future will be determined by the Board of Directors in light of conditions
then existing, including the Company's earnings, financial condition, capital
requirements and other factors.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
OVERVIEW
The Company was formed in October 1996 to acquire the assets of Vic
Murray and Associates, Inc. (VMA). The purchase of VMA was for the primary
purpose of obtaining the pending patent for the Zone Cabling Termination
Cabinet, the product which the Company has since developed and marketed.
Shortly after the acquisition of VMA, the Company made a determination
to discontinue the operations and business activities of VMA, which was a
manufacturer's representative of various products. Accordingly, all of the
operations of VMA have been reflected as discontinued operation in the
accompanying statements of operations. The following discussion and analysis
reviews the operations by the Company in 1995, 1996 and 1997. The 1995 and 1996
periods reflect the historical operations of VMA as discontinued operations, as
described above. The operations of the Company with regard to the development
and sale of these Zone Cabling Termination Cabinet are reflected in the
historical operations for 1997. The following discussion and analysis should be
read in conjunction with a discussion about risk factors and the consolidated
financial statements of the Company, included elsewhere in this Prospectus.
RESULTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997 COMPARED WITH THE YEAR ENDED
DECEMBER 31, 1996
REVENUES
The Company earned $231,622 in sales revenue during 1997. Revenue for
1996 was zero, because the Company did not commence sales of its Zoning Cabling
Termination Cabinet until 1997. This represents an increase of 100%. All other
revenues relating to the activities of VMA during 1996 are reflected in
discontinued operations, net of costs and expenses.
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COSTS AND EXPENSES
Management and consulting fees paid to officers/directors/stockholders
consists of fees paid for the personal services rendered by these officers, who
are also directors and stockholders of the Company. These increased 518% to
$285,384 for 1997 as compared with $46,154 for 1996. The increase is due to a
full year of fees paid and accrued to the officers of the company during 1997.
Product development costs include research, development and legal costs
associated with registering and maintaining the patent held by the Company for
its product. Such costs increased 68% to $11,072 for 1997 as compared with
$6,601 for 1996.
Marketing expenses include costs associated with informing customers
and potential customers about the product through means such as brochures,
specification sheets and the Internet. These expenses increased 100% to $38,821
in 1997 as compared with $0 in 1996.
General and administrative expenses include the general overhead costs
of operating the Company, as well as marketing costs, such as trade shows and
advertising. These expenses increased 2,004% to $258,888 in 1997 as compared
with $12,301 in 1996.
Interest expense represents the interest cost incurred on the debt
outstanding during the first quarter of 1997 and the last quarter of 1996. This
expense increased 103% to $2,424 as compared with $1,192 for 1996.
INCOME FROM DISCONTINUED OPERATIONS
Income from discontinued operations represents the net operating
results of VMA. Such net income, which represents the net results of operations
of VMA, totaled $4,606 for the year ended December 31, 1996. There were no
results from VMA as of December 31, 1997 due to the cessation of operations in
the prior year.
YEAR ENDED DECEMBER 31, 1996 COMPARED WITH THE YEAR ENDED DECEMBER 31,
1995 REVENUES
Revenues for 1996 and 1995 were zero, because the Company did not
commence sales of its Zoning Cabling Termination Cabinet until 1997. All other
revenues relating to the activities of VMA are reflected in discontinued
operations, net of costs and expenses.
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COSTS AND EXPENSES
Management and consulting fees paid to officers/directors/stockholders
consists of fees paid for the personal services rendered by these officers, who
are also directors and stockholders of the Company. These costs amounted to
$46,154 for 1996.
Product development costs include research, development and legal costs
associated with registering and maintaining the patent held by the Company for
its product. Such costs totaled $6,601 for 1996.
General and administrative expenses include the general overhead costs
of operating the Company, as well as marketing cost, such as trade shows and
advertising. These expenses totaled $12,301 in 1996.
Interest expense represents the interest cost incurred in the debt
outstanding during 1996. This expense amounted $1,192 for 1996.
Costs and expenses for 1995 were zero, because all of the costs and
expenses incurred by the Company have been presented in discontinued operations,
and applied against the revenue generated from the discontinued operations of
VMA.
INCOME FROM DISCONTINUED OPERATIONS
Income from discontinued operations represents the net operating
results of VMA. Such net income, which represents the net results of operations
of VMA, decreased $10,531 for the year ended December 31, 1996, as compared to
the same period ended December 31, 1995. The decrease was attributable primarily
to the cessation of operations.
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LIQUIDITY AND CAPITAL RESOURCES
The Company required cash for operating activities of approximately
$325,000 during the year ended December 31, 1997 and $21,000 during the year
ended December 31, 1996. The use of cash in both periods is due primarily to
Company expenditures for start up operations and promotion and distribution of
its products.
Cash used in investing activities, which includes patent development
and acquisition of fixed assets, was approximately $43,000 for the year ended
December 31, 1997 and $13,000 for the year ended December 31, 1996. This
increase was due to purchases of office equipment and computers as well as
expenses associated with protecting and making effective the Company's patent.
The Company received $100,000, from a short-term note payable during
the year ended December 31, 1996. This note was repaid in the first quarter of
1997. The Company completed a private placement of its stock which provided
proceeds of approximately $848,000 to the Company. The Company was provided with
cash from financing activities of approximately $749,000 for the year ended
December 31, 1997 and $95,800 for the year ended December 31, 1996.
The Company's operating and capital requirements in connection with its
development and marketing activities have been and will continue to be
significant. Based on its current plans, the Company anticipates that revenues
earned as a result of distribution agreements executed as of the date of this
filing, will be the primary source of funds for operating activities. The
Company believes that revenues in addition to existing cash and cash equivalents
remaining from proceeds of its private offering, will be sufficient to meet its
capital and liquidity needs for the next 12 months. The Company also believes
that cash required to fulfill purchase orders will be available through bank
borrowings or factoring, if required. The Company's primary customers are
substantial corporations with credit ratings that will support such credit
arrangements.
BUSINESS
COMPANY BACKGROUND
The Company's founder, Vic Murray, began working in the electrical,
cable and industrial supply business in 1945. As a Manufacturer's
Representative, he worked for such high profile companies as Graybar Electric
Company and Florida Electric Supply. Mr. Murray opened Vic Murray & Associates
as an independent manufacturer's representative in 1977 and such firm was
incorporated as Vic Murray & Associates, Inc. (VMA). VMA developed agency
relationships with electrical engineers, electrical contractors, municipalities,
power companies and distribution companies throughout the State of Florida. The
Company acquired VMA in exchange for Company common stock in 1996 and ceased its
manufacturer's representative business in order to engage exclusively in the
business described herein,
As a direct result of the break-up of the AT&T monopoly, thousands of
technology, service and equipment companies began to develop revolutionary
telecommunications products and services.
These companies could now fairly compete for business within the
rapidly evolving multi-billion dollar telecommunications industry.
Simultaneously, the computer industry evolved
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at a rapid pace as well. The telecommunications industry was forever changed and
for the first time in this industry, a myriad of new business opportunities
emerged.
Richard Murray was directed to research and evaluate the industry to
determine in which categories of supply and support they would specialize. The
decision was made to focus on wire management for voice, data, fiber optic, CCTV
and CATV applications. With the birth of new and revolutionary high speed
telecommunications technology and equipment, wiring and wire management would
become a critical part of the telecommunications industry.
Along with other specialists throughout the United States, the Murray's
quickly realized that designers of new buildings and renovations did not
consider adequate spacing and design requirements in order to accommodate the
telecommunications wiring. Although wire and wire management is a critical
portion of telecommunications, in some cases, the design engineers actually had
forgotten to include it in the project design. These engineering and industry
oversights create significant and expensive changes in structure design
resulting in the loss of usable or otherwise rentable spaces. Additionally,
excessive future moves, adds and changes (MAC's), of personnel offices,
telephones, data terminals and other cable termination points were generally
given little consideration.
BACKGROUND FOR PRODUCT DEVELOPMENT
Until now, Wire Management Systems have not evolved as rapidly as the
Telecommunications Industry as a whole. Industry leaders began to realize that
with the advent of technologically advanced equipment, systems, new methods of
conveyance (e.g. Fiber Optics) and the demand for connection to the "Information
Super Highway", the established methods of wiring and wire management were
outdated.
Telecommunication wiring originates outside the building and is routed
into the building through either an underground, direct buried or aerial service
entrance facility. An internal room within the building is designated as the
Entrance Facility (EF) and is normally located either on the first or in a
basement floor level. This space can also be used as the Equipment Room (ER). If
this space serves as the ER and houses the EF, it may also contain the main hub
of backbone pathways and cables that feed the various Telecommunications Closets
(TC) throughout the building. This main hub location is known as the Main
Cross-connect (MC). As a minimum, each and every floor of the building has a
Telephone Closet (TC). The TC functions to connect backbone cables to horizontal
cables (Horizontal Cross-connect - HC) or backbone cables to backbone cables.
TCs that contain backbone cables and pathways from the MC and from another TC
are called an Intermediate Cross-connect (IC). From the MC, high pair count
backbone cables are fed to every floor's designated TC (IC or HC). Cabling is
distributed to each floor through vertical and horizontal backbone cables and
pathways located in the center of the building that are usually surrounded by
firewalls. Every station location, (phone, fax, data, computer etc., located at
each Work Area - WA) is required to have two horizontal cables that run from the
WA back to the TC which in turn is fed back to the IC or MC. ANSI/TIA/EIA 568-A
telecommunications
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standards require two drops per WA. This wiring from the TC to the workstation
is generally referred to a "star" topology. Therefor each cable drop is a
"direct run" from the Work Area to the Telecommunications Closet and its
associated Horizontal Cross-connect.
This method of wiring and wire management provides for very little
cabling system flexibility to accommodate future moves, adds or changes (MAC
service orders).
The MC services the whole building and is generally located in a common
area. The TC is also located in common areas within each floor. The HC could be
as far as 295 ft. (90 meters) away from each termination point in the Work Area.
For uncatagorized voice wiring, the maximum backbone cable length is 800 meters.
This means that a massive amount of wire is required for telecommunication
applications. It is not unusual for a high rise building of 40 floors to have
200 - 300 Miles of wiring. The old method of zone cabling, requires very
expensive modular furniture for cable distribution within the office environment
in order to meet the multitude of industry standards and regulations. In some
applications, even modular furniture may not meet industry guidelines. The
Company's products are specifically designed to provide cabling solutions.
Today the telecommunications industry methods of information conveyance
must be able to handle more traffic than ever before. Wire and wire management
must be able to provide voice, data, video and low-voltage communications
faster, cheaper, cleaner, longer runs, using less space, while at the same time
accommodating long term considerations for expensive moves, adds and changes
(MAC's). Utilizing old methods of zone cabling, each and every move, add and
change for each workstation drop requires that a new "home run" be installed
back to the TC-HC. The Zone Cabling Termination Cabinet eliminates that need by
placing the telecommunications equipment close to the workstation and in an
inconspicuous location. Zone cabling moves, add's and changes are not only
expensive but time consuming and inconvenient. Cabling, wire management and
telecommunications technology is rapidly evolving. The industry leaders began to
address the need for new cabling methods and equipment. These companies,
industry associations and individual experts have joined together to create new
and revolutionary standards. Companies such as Lucent Technologies, Ortronics,
AT&T, Krone, Belden, Siecor, Hubbell, Leviton Telcom, Superior Modular Products
and American Access Technologies, Inc., in conjunction with various standards
organizations and telecommunications standards committee's, are developing and
introducing innovations in wire/cabling design, connections, consolidation,
distribution and termination points, providing for telecommunication signals to
be transmitted cheaper, faster, longer and clearer utilizing less space. This
method of cabling is called "Open Office Architecture'"
"Open Office Architecture" or more commonly called "Zone Cabling", is a
design allowed by ANSI/TIA/EIA Telecommunications Systems Bulletin 75. The
purpose of this design is to horizontally extend the location of the
consolidation point closer to the individual Work Areas. These locations of
consolidation points are called Zones.
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ZONE CABLING
Zone Cabling is officially defined as an "Interconnection in the
horizontal cabling which allows work station drops to be reconfigured frequently
without disturbing the horizontal cable run".
Zone Cabling is used in open office areas, hotels, convention centers,
entertainment and theme parks, hospitals, government buildings, schools,
industrial complexes, data centers, banks, and any other area where a flexible
cable layout is required to support collaborative work or provide service to an
area of high density and common use. Zone Cabling is used to support office
areas where reconfiguration of work areas is required due to a high rate of
rearrangements and/or reconfigurations (Moves, Adds and Changes are often
referred to as Churns).
PRODUCT AND PRODUCT DEVELOPMENT
The Company determined that it needed to expand in this market place as
rapidly as possible. The Company was reorganized and is now named American
Access Technologies, Inc. The purpose of the Company is to identify, design,
develop, and manufacture new products for any and all telecommunications cabling
applications with a specific focus on zone cabling. The Company consulted with
many of the leading telecommunications specialists and engineers and all were in
agreement. No one had developed a device that met all of the industry standards
and could effectively and efficiently be utilized as a zone cabling
consolidation/distribution/termination point. However, some sort of device was
absolutely required to complete the "Open Office Architecture"/Zone Cabling
design. American Access Technologies, Inc. performed the necessary research and
verified that no such Zone Cabling Termination Cabinet existed. In fact, such
research indicated that no one was even developing such a zone device.
The Company has designed a consolidation/distribution/termination point
enclosure called Zone Cabling Termination Cabinet, (ZCTC) and currently holds a
Utility Patent Pending for such enclosure that may be installed in the ceiling,
above the ceiling, on or in the wall or on or in the floor structure. The
ceiling ZCTC is uniquely utilized as a consolidation/distribution/termination
enclosure that fits into the suspended ceiling the and system. The ZCTC provides
easy access to the horizontal cabling backbone, reduces material and
installation effort, and minimizes office disruption and down time of systems
while at the same time enhances telecommunication security and reduces the floor
and wall space requirements for termination apparatus. The floor ZCTC provides
the same application solution in a floor installation.
The Company believes its ZCTC products are the only enclosures
manufactured that can function as a consolidation, distribution, termination
pointer multi-user outlet in a zone cabling system and still comply with all
industry and government guidelines, standards and regulations. The ZCTC products
provides an enclosure that can be utilized for any and all low voltage wiring
systems including but not limited to voice, data, video, HVAC, building
controls, security, and fire/life/safety wiring systems. The ZCTC was designed
to accommodates all manufacturers
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<PAGE> 15
equipment including Category 3, 4 and 5 Jack Panels, Patch Panels, and Punch
Panels as well as fiber optic cables.
PRODUCT APPLICATION
The ZCTC will reduce the amount of wire needed for home runs from the
workstation to the TC-HC. These individual home runs will now run from the Work
Area to the ZCTC which is now located closer to the station termination
(modular jack). The ZCTC will be located within a controlled work environment
which is readily accessible located in the ceiling the grid system. The ZCTC is
designed to physically accommodate all of the newly developed "Open Office
Architecture" wiring equipment and distribution connections. This enclosure is
mounted in a standard 2ft. x 4 ft. ceiling the grid system but is physically
attached to the building structure to support the weight of the equipment
installed within the enclosure. The equipment access door opens from below the
ceiling the for easy maintenance, installations or MAC'S. Specially trained
technicians will no longer be required to effectuate MAC'S. The new wiring and
distribution equipment is of the modular plug-in type (not one time use)
creating less down time, loss of productivity and can be easily re-routed and
reused. The initial installation of the ZCTC is approximately the same as the
old method of Distribution Cabling. However, the Company believes the short term
and long term cost savings are very significant. It estimates that the ZCTC will
reduce short term and long term costs by:
Fire Stopping-reduced cable penetration resulting in reduced material
cost.
Cable reuse-Cable can be re-routed for re-use.
Labor-Zone Cabling Termination Cabinet allows shorter cable runs for
MAC's
The Zone Cable Termination Cabinet (ZCTC) provides better utilization
of the common area TC's. and provides the building owners more usable space.
The ZCTC provides for more efficient utilization of horizontal cables and it
significantly reduces the physical mass of cables to be run throughout the
building.
It also moves the point of connection closer to the Work Area making
it easier to effect changes and modifications without disturbing the work force.
Ceiling the is attached to the exposed "underside" of the enclosure disguising
its appearance thereby providing an degree of concealment and security for the
horizontal cable consolidation/distribution/termination point. It offers greater
security to the communication system since it is obscured, out of reach and
can easily be monitored by closed circuit TV. Breaking down communications
into zones is a sensible and cost effective alternative to the conventional
methods of cabling a building.
The benefits include: Reduced employee disruption, reduced system down
times, lower hourly rate for qualified technicians.
15
<PAGE> 16
STANDARDS
The standards, regulations and various Industry association guidelines
are very specific. The Company believes its Zone Cabling Termination Cabinet
(ZCTC) is the only product that meets the standards/requirements of the
telecommunications industry Building Industrial Consulting Services
International (BICSI), National Electric Code regulations NEC 300-22 B & C,
American National Standards Institute/Telephone Industry Association/Electrical
Industry Association publication 568 A, as well as the Zone Cabling guidelines
as specified in the newly released Telecommunications Systems Bulletin - TSB 75.
The Zone Cabling Termination Cabinet (ZCTC) is the only product known to the
Company that meets or exceeds these regulations and guidelines and has and
Underwriters Laboratories listing of UL 1863. This product is the only product
that has been tested by Underwriters Laboratories for this application.
Therefore, Underwriters Laboratories has assigned this product to a new category
listing. This listing is identified as UL 1863 (Telecommunications Cabinets)
under 31RF, and is further identified as a Type 12 rated enclosure for Plenum
type installations. The ZCTC is also listed as UL2043. The ZCTC is currently the
only enclosure manufactured to these standards.
MARKETING
The primary focus of marketing efforts is to "PARTNER" with major
equipment manufacturers and telecommunications distributors since the Company's
products are designed to enhance the sales the manufacturer and distributor.
Since the Company's products enable the placement of telecommunications
equipment into ZONES and still comply with all of the industry guidelines and
building regulations, each of these companies can use the Company's enclosure to
sell more of their products. By partnering with the Company each manufacturer
and/or distributor has opportunity to gain a larger share of their respective
markets. The Company is providing various support programs and materials that
enhances its partners marketing plan.
The Company has developed several collateral marketing pieces. These
collateral material pieces range from one page to an eight page full color
product and application brochure. Our printed materials and World Wide Web Site
currently serves as our primary marketing tools. All of these marketing/media
materials provide Company information, product information, engineering
specifications, drawings, application for use, installation instruction,
features and benefits tailored to each individual market need. Additionally the
World Wide Web Site provides marketing support materials that can be downloaded
and printed at individual locations throughout the world. Questions and answers
can be transmitted via e-mail feedback capability, query analysis for tracking
of inquiries, lead generation for the distributors, distribution of marketing
materials to end users not normally addressed by the individual distributors.
The largest and most recognized telecommunications training and
certification organization (BICSI) is currently using the ZCTC line of products
as an integral part of their Zone Cabling Training and Certification course.
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<PAGE> 17
The Company is participating with its partners in trade shows as a
component in their individual booths and hospitality suites. However, the
Company will individually participate in three or four trade shows per year. Two
of the shows are focused around standards, training and certifications. The
remaining two shows are industry product shows. The Company attended SUPERCOMM
97 that was held in New Orleans in June 1997. The Company believes that certain
of its partner relationships were as a result of its show presence.
The end users of the Company's products contract with specialized,
BICSI Certified Registered Communications Distribution Designers (RCDD),
qualified engineers and contracting firms. These specialist design, specify,
purchase and install cabling of all types, switches and all other
telecommunications equipment as required by the end user. All product purchases
are made through authorized distributors with the exception of certain companies
who can purchase extremely large quantities as a private label type product.
The market potential for the Zone Cabling Termination Cabinet is
believed to be large and can be generally classified within two categories-
"New Installation" and "Refurbishment of Existing Facilities".
DISTRIBUTION AND SALES
American Access Technologies has entered into a national distribution
contract with ANIXTER Internationals, Inc.
Anixter International Inc. (NYSE: AXE), 1996 revenues $2.5 billion.
Anixter International is a leading value-added provider of integrated
cabling and networking solutions that support business information and network
infrastructure requirements. Anixter teams with customers to implement these
solutions by combining a variety of customized pre- and post-sale services,
products from the world's leading manufacturers, and superior logistics
management through a global network of 37 countries with 205 domestic operating
locations. Anixter International also owns approximately 19 percent of ANTEC
(NASDAQ: ANTC).
American Access Technologies has negotiated distribution agreements
with the following Regional distributors:
CED-American Electric, Inc. (Data Voice)
Founded over 100 years ago as a private Company and has grown to over
400 locations spread over 48 states and Canada. CED gross revenues in 1996
exceed $500 million and they employee over 3,500 people in their service area.
They stock over 25,000 separate inventory items with well in excess of 1 million
warehousing facilities.
State Electric Supply
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<PAGE> 18
State Electric was founded in 1954 in Dunbar, West Virginia, as a
private Company and has grown to over 22 locations spread over seven states.
State Electric Supply gross revenues in 1996 of over $125 million, and
employees over 500 people in their service area.
Core Data Comm, a Regional Distributor specializing in
telecommunications.
American Access Technologies, Inc., is currently negotiating with
several National Distributors. There can be no assurance of any additional
distribution agreements.
COMPETITION
The market for telecommunications products is highly competitive and
subject to rapid technological change, regulatory developments and emerging
industry standards. The Company believes that the principal competitive factors
in its markets are conformance to standards, reliability, safety, product
features, price, performance and quality of customer support. There can be no
assurance that the Company will compete successfully in the future with respect
to these or other factors.
MANUFACTURING
The Company has developed all of its products utilizing computer
assisted design drawings (CADD). Master copies of its products are safeguarded
at the home office and certain copies are available to outsource firms.
At present, the Company outsources it's product prototyping,
production, manufacturing, assembly and packaging to Omega Metals, Inc., located
in Keystone Heights, Florida. As a contract manufacturer, Omega Metals
specializes in providing complete manufacturing and assembly services. As part
of their complete services package, Omega Metals provides manufacturing as well
as consulting services, product prototype development plus short and/or long run
manufacturing for the products designed by the Company. After product prototypes
are reviewed, modified and accepted by the Company, Omega Metals manufactures
the products, provides complete product assembly, performs manufacturing quality
assurance, packages the products and ships as specified by the Company.
Employing the most current computer controlled equipment on the market,
they have a manufacturing capacity of approximately five (5,000) thousand units
per month and have additional space for expansion as the need arises. Their
manufacturing capability is not limited to only precision metal fabrication as
they also provide on site state of the art high-tech surface coatings such as
Iridizing, Powder Coating, Silk Screening and specialized production painting.
The Company does not have a long-term supply contract with Omega
Metals, Inc. However, the Company believes that other companies are qualified to
manufacture its products if Omega Metals, Inc. is terminated as a supplier for
any reason.
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<PAGE> 19
FUTURE PRODUCT DEVELOPMENT
As the Company identified the specific product needs of the
telecommunications industry they developed products to address these needs.
Products designed to date have been accepted by the major Standards and Code
Authorities throughout the United States. The products assist equipment
manufacturers in marketing their own products.
The Company's first design was a low-voltage Zone Cabling Termination
Cabinet which mounts within the ceiling the grid system. The Company developed
accessory equipment to permit cable penetrations and maintain fire rating.
The second phase was to develop a cabinet that serves as a termination,
distribution and/or consolidation point within a raised floor data center. This
unit has been developed with a prototype. It is estimated that this unit will be
in production within the next six months.
The third phase includes a high-voltage termination cabinet that mounts into
the ceiling the grid system to house active electronics, including computer
hubs, routers and switches. This unit will accommodate Fiber Optics as well as
conventional copper wiring. We anticipate that this unit will be U.L. listed
and into production within the next six months.
There can be no assurance that any new products will be successfully
developed or marketed.
INTELLECTUAL PROPERTY
The Company has filed with the United States Department of Commerce,
Patent and Trademark Office application for patent, pending No. 08785006, for
Zone Cabling Termination Cabinet and Communications Cable Interconnection
Apparatus and Associated Method for an Open Office Architecture. The patent
application contains approximately 67 various claims associated with zone
cabling techniques.
The Company is preparing a formal filing under the Patent Cooperation
Treaty for European filing and will have foreign applications filed before
January 1998.
There can be no assurance that any patents will be granted on the
Company's products or, if granted, that they will provide meaningful
protection against competing products which may be introduced. See "Litigation."
GOVERNMENT REGULATION - INDUSTRY STANDARDS
The markets for the Company's products are characterized by the need to
meet governmental and industry standards. In the U.S., the Company's products
must comply with various regulations established by the Federal Communications
Commission and Underwriters Laboratories, as well as
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<PAGE> 20
standards established by Bell Communications research and local building codes.
The ZCTC has been approved by Underwriters Laboratories for low voltage
communications and meets or exceeds the national electrical code requirements
when used with appropriate fire foam kits in association with cable access
penetration models
The Company maintains membership in trade organizations such as the
Telecommunications Industry Association, International Association of Electrical
Inspectors and Building Industrial Consulting Services International.
EMPLOYEES
As of December 3, 1997 substantially all of the activities of the
Company are undertaken by its three officers, who are engaged pursuant to
Executive Management Agreements, and two commission sales representatives. See
"Executive Compensation - Executive Management Agreements".
LITIGATION
The Company is defendant in a suit filed in January 1998 in the 18th
Judicial Circuit Court of Florida by Steve R. Jones who was the Company's
President from April 1997 to August 1997. Mr. Jones seeks rescission of a
consulting agreement he signed with the Company in August 1997, a declaration
that certain provisions of such agreement relating to non-competition, trade
secrets, non-disclosure and conflict of interest are no longer applicable to Mr.
Jones, damages for failure of the Company to make consulting payments of $7,500
per quarter to Mr. Jones and the present value of his stock options which he
agreed to surrender to the Company (200,000 options at $8.00 per share) and the
value of 200,000 shares of the Company's common stock which he surrendered
pursuant to the consulting agreement. The Company believes it was justified in
not paying Mr. Jones' consulting fees due to Mr. Jones' failure to perform the
consulting services assigned to him. Mr. Jones, through his attorney, has also
indicated that Mr. Jones is the inventor, or a co-inventor, of the Company's
Zone Calling Termination Cabinet. The Company does not believe that Mr. Jones
is the inventor or a co-inventor of such product and such issue is not included
in the litigation with Mr. Jones. If it were determined that Mr. Jones was the
inventor or co-inventor of the Company's product, such fact could cause the
invalidity of any patent issued to the Company on such product.
FACILITIES
The Company's executive offices in Altamonte Springs, Florida comprise
3,000 square feet and are leased on a 3 year lease expiring December 31, 1999 at
a rent of $3,133 per month.
MANAGEMENT
The directors and executive officers of the Company are as follows:
<TABLE>
<CAPTION>
Name Age Position
----------------- ---- ---------
<S> <C> <C>
Victor E. Murray 73 President, Director
Richard A. Murray 43 Vice President, Director
Bobby E. Story 56 Secretary, Treasurer, Director
John W. Cooney 62 Director
Victor D. Phillips 55 Director
</TABLE>
VICTOR E. MURRAY, President and Director, has a 30 year track record of
success in the Electrical Engineering field with experience in distribution,
manufacturing and marketing. He has worked with companies such as Florida
Electrical Supply, Graybar Electric, James & Associates and Ralston, Lowe, Inc.
The clients he has served range from engineers and contractors to power
companies and municipalities. Employment history for the past five (5) years is:
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<PAGE> 21
October 1996 to February 1997 and August 1997 to Present: President -
American Access Technologies, Inc.
January 1, 1995 to October 1996: President - Vic Murray & Associates,
Inc.
April 1977 to December 31, 1994: Vic Murray & Associates, Inc.
Manufacturer's Representative
RICHARD A. MURRAY, Vice President-Sales and Director, has over 15 years
experience in the electrical field specializing in such area as Ozone
Generation, electrical switching and telecommunications. He has over 2 years
high level military training in sensitive electrical technologies. Mr. Murray
was Vice President of Sales for COOL WAY. Employment history for the past five
(5) years is:
October 1996 to Present: Vice President - American Access Technologies,
Inc.
January 1, 1995 to October 1996: Vice President - Vic Murray &
Associates, Inc.
April 1977 to December 31, 1994: Vic Murray - associates - associate,
manufacturer's representative specializing in the telecommunications supplies,
wiring, and equipment.
BOBBY E. STORY, Secretary/Treasurer, CFO and Director, has been a
former practicing CPA and real estate developer during the past 30 years. He
worked for Arthur Young & Company CPA (now Ernst & Young, LLP), Treasurer for
Condey Corporation an international developer located in Winter Park, Florida,
and directed the real estate operations in Florida for Drexel Burnham Lambert &
Company. He functions as the Chief Financial Officer for the corporation.
Employment history for the past five (5) years is:
October 1996 to Present: Sec/Treasury, CFO - American Access
Technologies, Inc.
August 1996 to October 1996: Financial Advisor - Self employed.
March 1996 to August 1996: George S. May Co. Project Manager
April 1987 to March 1996: NACEX, Inc. Controller, Vice President
Finance
JOHN W. COONEY, Director, is a certified public accountant. He was
Senior Tax Partner at Coopers Lybrand, LLP, until he retired in 1986. He has
practiced as a tax and financial consultant since then. Employment history for
the past five (5) years is:
January 1987 to Present: Operates J. W. Cooney, CPA as a sole
proprietorship.
VICTOR D. PHILLIPS, Director, is a member of the Company's Active
Advisory and Consulting Board. He has been in the telecommunications industry
for over 30 years, certified as
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a Registered Communications Distribution Designer, teaches as a certified BICSI
instructor, past National President of BICSI and is currently President of
Information Transport Systems Designers International which provides consulting,
design, inspection and project management services. Mr. Phillips is a member of
the International Association of Electrical Inspectors and is a communications
inspector and member of the Florence County Board of Appeals in Florence, South
Carolina. Employment history for the past five years is:
August 1991 to Present: President of Information Transport Systems
Designers.
EXECUTIVE COMPENSATION
SUMMARY COMPENSATION TABLE
The following table sets forth the total compensation paid to the
Company's chief executive officer for the last three completed fiscal years. No
executive officer of the Company received compensation of $100,000 or more
during any such year.
<TABLE>
<CAPTION>
Name and Other Annual
Principal Position Year Total Income Bonus Compensation
- ------------------ ---- ------------ ----- ------------
<S> <C> <C> <C> <C>
Victor E. Murray, President 1995* $51,576 -0- -0-
1996* $25,501 -0- -0-
1997 $60,000
</TABLE>
*paid by Vic Murray and Associates, Inc.
DIRECTOR COMPENSATION
At present, director fees are paid to Victor D. Phillips at the rate of
$250 per meeting plus travel and lodging expenses. No other fees are paid for
director services.
EXECUTIVE MANAGEMENT AGREEMENTS
On October 21, 1996 three officers of the Company have entered into
management agreements with the Company. The individuals and their titles are as
follows:
Victor E. Murray President
Bobby E. Story Chief Financial Officer
Richard A. Murray Vice President
Their combined responsibilities are to organize policies and procedures
for business operations, secure short and long term financing, develop products
and/or services, develop market and sell products and/services, provide (legal,
accounting and industry specific) services to properly organize and profitably
operate the Company.
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<PAGE> 23
Each officer is authorized a management fee of $5,000.00 per month
however, each will be paid $693.00 per week. The unpaid balance due each officer
will accrue. Accrued compensation will be paid as directed by the board of
directors but shall be paid on or before December 31, 1998. State or federal
taxes on compensation paid are the sole responsibility of each officer
individually.
The term of the agreements are on a month to month basis and may be
terminated by either party by giving notice of at least 30 days prior to
anticipated termination.
INDEMNIFICATION
FLORIDA BUSINESS CORPORATION ACT
Subsection (1) of Section 607.0850 of the Florida Business Corporation
Act ("BCA") empowers a corporation to indemnify any person who was or is a
party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than an action by or in the right of the corporation)
by reason of the fact that he is or was a director, officer, employee or agent
of the corporation or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise (including an employee benefit plan),
against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by him in connection with such
action, suit or proceeding if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
corporation, and with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful.
Subsection (2) of Section 607.0850 of the BCA empowers a corporation
to indemnify any person who was or is a party or is threatened to be made a
party to any threatened, pending or completed action or suit by or in the right
of the corporation to procure a judgment in its favor by reason of the fact
that such person acted in any of the capacities set forth above, against
expenses (including attorneys' fees) actually and reasonably incurred by him in
connection with the defense or settlement of such action or suit if he acted
under similar standards, except that no indemnification may be made in respect
to any claim, issue or matter as to which such person shall have been adjudged
to be liable for negligence or misconduct in the performance of his duty to the
corporation unless and only to the extent that the court in which such action
or suit was brought, or any other court of competent jurisdiction, shall
determine that despite the adjudication of liability, but in view of all of the
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which the court shall deem proper.
BCA Section 607.0850 further provides that indemnification provided
for by Section 607.0850 shall not be deemed exclusive of any other rights to
which the indemnified party may be entitled and empowers the corporation to
purchase and maintain insurance on behalf of a director, officer, employee or
agent of the corporation against any liability asserted against him and
incurred by him in the capacities set forth above, or arising out of his status
as such, whether or not the corporation would have the power to indemnify him
against such liabilities under Section 607.0850.
ARTICLES OF INCORPORATION
Article 4 of the Company's Articles of Incorporation provides that the
Company shall indemnify those persons entitled to be indemnified, to the
fullest extent permitted by law.
SECURITIES AND EXCHANGE COMMISSION POLICY
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 (the "Act") may be permitted to directors, officers or
persons controlling the Company, the Company has been informed that in the
opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is therefore unenforceable.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Victor E. Murray, President, is the father of Richard A. Murray, Vice
President of the Company. They co-invented the primary product of the Company,
the Zone Cabling Termination Cabinet and subsequently assigned all rights to the
patent to the Company.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
The following table sets forth, as of December 5, 1997, the beneficial
ownership of the Company's Common Stock by (i) the only persons who own of
record or are known to own, beneficially, more than 5% of the Company's Common
Stock; (ii) each director and executive officer of the Company; and (iii) all
directors and officers as a group.
<TABLE>
<CAPTION>
Percent of
Number of Outstanding
Name Shares Common Stock(1)
<S> <C> <C>
Victor E. Murray 400,000 13.47%
Richard A. Murray 400,000 13.47%
Bobby E. Story 390,000 13.13%
Steven K. Robinson 200,000 6.73%
Steve R. Jones 200,000 6.73%
John W. Cooney 50,000 1.68%
Victor D. Phillips -0- -0-
Bridge Bank Ltd. 800,000 26.94%
Cede & Co. 186,947 6.29%
</TABLE>
23
<PAGE> 24
<TABLE>
<S> <C> <C>
Officers and Directors
as a group (5 persons) 1,240,000 41.75%
</TABLE>
(1) Based upon 2,970,000 shares outstanding
Does not include warrants to purchase Common Stock at $8.00 per share
as follows: Victor E. Murray - 70,000 shares; Richard A. Murray - 70,000 shares;
Steven K. Robinson - 70,000 shares; Bobby E. Story - 70,000 shares; and Capital
International Securities Group, Inc. - 350,000 shares.
DESCRIPTION OF SECURITIES
COMMON STOCK
The Company is authorized to issue 10,000,000 shares of Common Stock
with $.001 par value. The holders of the Common Stock are entitled to one vote
per each share held and have the sole right and power to vote on all matters on
which a vote of stockholders is taken. Voting rights are non-cumulative. The
holders of shares of Common Stock are entitled to receive dividends when, as and
if declared by the Board of Directors, out of funds legally available therefore
and to share pro-rata in any distribution to stockholders. The Company
anticipates that any earnings will be retained for use in its business for the
foreseeable future. Upon liquidation, dissolution, or winding up of the Company,
the holders of the Common Stock are entitled to receive the net assets held by
the Company after distributions to the creditors. The holders of Common Stock do
not have any preemptive right to subscribe for or purchase any shares of any
class of stock. The outstanding shares of Common Stock and the shares offered
hereby will not be subject to further call or redemption and will be fully paid
and non-assessable
STOCK PURCHASE WARRANTS
Each Stock Purchase Warrant will entitle the registered holder to
purchase one share of the Company's Common Stock for $8.00. The exercise prices
of the Warrants and the number of shares issuable upon exercise of such Warrants
will be subject to adjustment to protect against dilution in the event of stock
dividends, stock splits, combinations, subdivisions and reclassification.
Warrants may be exercised by payment of the exercise price in United States
funds by cash or certified or bank check. No fractional shares of Common Stock
will be issued in connection with the exercise of Warrants. Warrants may not be
exercised unless a registration statement pursuant to the Securities Act, as
amended, covering the underlying shares of Common Stock is current and such
shares have been qualified, or there is an exemption from qualification
requirements under the securities laws of the state of residence of the holder
of the Warrants. In the event that there is no such registration statement or
exemption from registration, the holder will not be able to exercise the
Warrants.
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<PAGE> 25
Unless extended by the Company at its discretion, the Warrants will
expire at 3:00 p.m. Eastern time on February 11, 2000. In the event a holder of
Warrants fails to exercise the Warrants prior to their expiration, the Warrants
will expire and the holder thereof will have no further rights with respect to
the Warrants.
The Warrants may be exercised upon surrender of the Warrant
certificate on or prior to the expiration date at the offices of the warrant
agent, with the exercise form on the reverse side of the Warrant certificate
completed and executed as indicated, accompanied by full payment of the exercise
price (by certified check or bank draft payable to the Company) to the warrant
agent for the number of Warrants being exercised. The Warrant Holders do not
have the rights or privileges of holders of Common Stock.
No Warrant will be exercisable unless at the time of exercise the
Company has filed a current registration statement with the Commission covering
the shares of Common Stock issuable upon exercise of such Warrant and such
shares have been registered or qualified or deemed to be exempt from
registration or qualification under the securities laws of the state of
residence of the holder of such Warrant. While it is the Company's intention to
do so, there can be no assurance that it will be able to do so.
PLAN OF DISTRIBUTION/
SELLING SECURITY HOLDERS
PLAN OF DISTRIBUTION
The Warrants and/or shares offered hereby may be sold from time to
time directly by the Selling Security Holders. Alternatively, the Selling
Security Holders may from time to time offer such securities through
underwriters, dealers or agents. The distribution of securities by the Selling
Security Holders may be effected in one or more transactions that may take
place on the over-the-counter market, including ordinary broker's transactions,
privately-negotiated transactions or through sales to one or more
broker-dealers for resale of such securities as principals, at market prices
prevailing at the time of sale, at prices related to such prevailing market
prices or at negotiated prices. Usual and customary or specifically negotiated
brokerage fees or commissions may be paid by the Selling Security Holders in
connection with such sales of securities. The securities offered by the selling
Security Holders may be sold by one or more of the following methods, without
limitations: (a) a block trade in which a broker or dealer so engaged will
attempt to sell the securities as agent but may position and resell a portion
of the block as principal to facilitate the transaction; (b) purchases by a
broker or dealer as principal and resale by such broker or dealer for its
account pursuant to this Prospectus; (c) ordinary brokerage transactions and
transactions in which the broker solicits purchasers, and (d) face-to-face
transactions between sellers and purchasers without a broker-dealer. In
effecting sales, brokers or dealers engaged by the Selling Security Holders may
arrange for other brokers or dealers to participate. The Selling Security
Holders and intermediaries through whom such securities are sold may be deemed
"underwriters" within the meaning of the Act with respect to the securities
offered, and any profits realized or commissions received may be deemed
underwriting compensation.
At the time a particular offer of securities is made by or on behalf
of a Selling Security Holder, to the extent required, a Prospectus will be
distributed which will set forth the number of securities being offered and the
terms of the Offering, including the name or names of any underwriters, dealers
or agents, if any, the purchase price paid by any underwriter for sales
purchased from the Selling Stockholder and any discounts, commissions or
concessions allowed or reallowed or paid to dealers and the proposed selling
price to the public.
The following security holders may offer Warrants and/or shares of
Common Stock issuable upon exercise of such Warrants:
<TABLE>
<CAPTION>
Number of
Warrants
or Shares Number of
Which may Warrants
be Offered and Shares
Number of Pursuant to be Owned
Warrants to this After the
Name and Company Affiliation Owned Prospectus Offering*
- ---------------------------- ----- ---------- ---------
<S> <C> <C> <C>
Capital International Securities Group, Inc. 350,000 350,000 -0-
Bobby E. Story, Secretary, Treasurer, Director 70,000 70,000 390,000
Victor E, Murray, President 70,000 70,000 400,000
Richard A, Murray, Vice President, Director 70,000 70,000 400,000
Steven K. Robinson 70,000 70,000 200,000
</TABLE>
25
<PAGE> 26
The following security holder may offer shares of Common Stock:
<TABLE>
<CAPTION>
Number
Of Shares
Which may be Number of
Offered Shares
Number of Pursuant to be Owned
Shares to this After the
Name Owned Prospectus Offerings
---- ----- ---------- ---------
<S> <C> <C> <C>
Steven R. Jones 200,000 200,000 -0-
Steven K. Robinson 200,000 200,000 -0-
</TABLE>
*Assuming all Warrants and/or Shares are sold.
LEGAL MATTERS
The validity of the securities offered hereby is being passed upon for
the Company by Joel Bernstein, 9701 Biscayne Boulevard, Miami, Florida.
EXPERTS
The financial statements appearing in this Prospectus and Registration
Statement have been audited by Rachlin Cohen & Holtz, CPA's, independent
certified public accountants, as set forth in their report thereon appearing
elsewhere herein and in the Registration Statement, and are included in reliance
upon such report given upon the authority of such firm as experts in accounting
and auditing.
ADDITIONAL INFORMATION
The Company has filed with the Securities and Exchange Commission a
Registration Statement on Form SB-2 under the Securities Act with respect to the
securities offered hereby. This Prospectus, filed as a part of the Registration
Statement, does not contain certain information set forth in or annexed as
exhibits to the Registration Statement, and reference is made to such exhibits
to the Registration Statement for the complete text thereof. For further
information with respect to the Company and the securities offered hereby,
reference is made to the Registration Statement and to the exhibits filed as
part thereof, which may be inspected and copied at the public reference
facilities of the Commission in Washington, D.C., and at the Commission's
regional offices at 500 West Madison Street, Chicago, IL 60604; 7 World Trade
Center, New York, NY 10048; and 5757 Wilshire Boulevard, Los Angeles, CA 90034;
and copies of such material can be obtained from the Public Reference Section of
the Commission, 450 5th Street, N.W., Washington, DC 20549, at prescribed rates
and are available on the World Wide Web at: http://www.sec.gov.
26
<PAGE> 27
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS F-1
CONSOLIDATED FINANCIAL STATEMENTS
Balance Sheet F-2
Statements of Operations F-3
Statements of Stockholders' Equity (Deficiency) F-4
Statements of Cash Flows F-5
Notes to Financial Statements F-6 - F-14
</TABLE>
<PAGE> 28
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors and Stockholders
American Access Technologies, Inc.
We have audited the accompanying consolidated balance sheet of American Access
Technologies, Inc. and Subsidiary (a development stage company) as of December
31, 1997, and the related consolidated statements of operations, stockholders'
equity (deficiency) and cash flows for each of the two years in the period then
ended and cumulative from inception. These consolidated financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the consolidated financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
consolidated financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of American Access
Technologies, Inc. and Subsidiary as of December 31, 1997, and the results of
their operations and their cash flows for each of the two years in the period
then ended and cumulative from inception in conformity with generally accepted
accounting principles.
The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. As more fully discussed in
Note 2 to the consolidated financial statements, the Company is in the
development stage and has incurred net losses in 1997 and 1996 and reflects a
deficit accumulated during the development stage as of December 31, 1997. This
condition raises substantial doubt as to the ability of the Company to continue
as a going concern. Management's plans with regard to this matter are also
described in Note 2 to the consolidated financial statements. The consolidated
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.
RACHLIN COHEN & HOLTZ
Miami, Florida
March 25, 1998
F-1
<PAGE> 29
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1997
<TABLE>
<S> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 442,555
Accounts receivable 11,436
Inventory 21,586
Prepaid expenses 3,547
---------
Total current assets 479,124
---------
Property and Equipment 35,277
---------
Other Assets:
Patent costs 22,583
Other assets 3,598
---------
Total other assets 26,181
---------
Total assets $ 540,582
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses:
Management and consulting fees, interest and
reimbursements due to officers/directors/stockholders $ 83,120
Other 17,705
---------
Total current liabilities 100,825
---------
Commitments, Contingencies and Other Matters --
Stockholders' Equity:
Preferred stock, $.001 par value; authorized --
1,000,000 shares; none issued
Common stock, $.001 par value; authorized 10,000,000
shares; issued and outstanding 2,970,000 shares 2,970
Additional paid-in capital 929,490
Deficit accumulated during the development stage (492,703)
---------
Total stockholders' equity 439,757
---------
Total liabilities and stockholders' equity $ 540,582
=========
</TABLE>
See notes to consolidated financial statements.
F-2
<PAGE> 30
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Year Ended
December 31, Cumulative
------------------------- from
1997 1996 Inception
--------- --------- ---------
<S> <C> <C> <C>
Revenues $ 231,622 $ -- $ 231,622
--------- --------- ---------
Costs and Expenses:
Direct costs 65,480 -- 65,480
Management and consulting fees,
officers/directors/stockholders 285,384 46,154 331,538
Product development 11,072 6,601 17,673
Marketing and promotion 38,821 -- 38,821
General and administrative 258,888 12,301 271,189
--------- --------- ---------
659,645 65,056 724,701
--------- --------- ---------
Loss before Other Income (Expense) (428,023) (65,056) (493,079)
--------- --------- ---------
Other Income (Expense):
Interest Income 3,992 -- 3,992
Interest Expense (2,424) (1,192) (3,616)
--------- --------- ---------
1,568 (1,192) 376
--------- --------- ---------
Loss from Continuing Operations (426,455) (66,248) (492,703)
Income from Discontinued Operations -- 4,606 4,606
--------- --------- ---------
Net Loss $(426,455) $ (61,642) $(488,097)
========= ========= =========
Net Loss Per Common Share $ (0.14) $ (0.02)
========= =========
</TABLE>
See notes to consolidated financial statements.
F-3
<PAGE> 31
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock Additional During the
------------------------ Paid-In Development
Shares Amount Capital Stage Total
---------- ------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Year Ended December 31, 1995:
Issuance of common stock for cash ($.001 per share) 2,800,000 $ 2,800 $ -- $ -- $ 2,800
Net income -- -- -- 15,137 15,137
Stockholder distribution -- -- -- (15,137) (15,137)
---------- ------- -------- --------- ---------
Balance, December 31, 1995 2,800,000 2,800 -- -- 2,800
Year Ended December 31, 1996:
Contributed capital -- -- 7,083 -- 7,083
Net loss -- -- -- (61,642) (61,642)
Stockholder distribution -- -- -- (4,606) (4,606)
---------- ------- -------- --------- ---------
Balance, December 31, 1996 2,800,000 2,800 7,083 (66,248) (56,365)
Year Ended December 31, 1997:
Issuance of common stock to director
for consulting services ($1.50 per share) 50,000 50 74,950 -- 75,000
Sale of common stock in private placement
($1.50 per share), net of related costs 400,000 400 487,577 -- 487,977
Exercise of placement agent warrants
($3.00 per share) 120,000 120 359,880 -- 360,000
Retirement of common stock issued to officers (400,000) (400) -- -- (400)
Net loss -- -- -- (426,455) (426,455)
---------- ------- -------- --------- ---------
Balance, December 31, 1997 2,970,000 $ 2,970 $929,490 $(492,703) $ 439,757
========== ======= ======== ========= =========
</TABLE>
See notes to financial statements.
F-4
<PAGE> 32
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Year Ended
December 31, Cumulative
------------------------- from
1997 1996 Inception
--------- --------- ---------
<S> <C> <C> <C>
Cash Flows from Operating Activities:
Net loss $(426,455) $ (61,642) $(488,097)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation 6,626 -- 6,626
Common stock issued for services 75,000 -- 75,000
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable (11,436) -- (11,436)
Inventory (21,586) -- (21,586)
Prepaid expenses (673) (2,874) (3,547)
Other assets 4,540 (8,138) (3,598)
Increase in accounts payable and accrued expenses 49,079 51,638 100,717
--------- --------- ---------
Net cash used in operating activities (324,905) (21,016) (345,921)
--------- --------- ---------
Cash Flows from Investing Activities:
(Increase) decrease in note receivable 5,000 (5,000) --
Expenditures for development of patent (14,500) -- (14,500)
Acquisition of property and equipment (33,676) (8,227) (41,903)
--------- --------- ---------
Net cash used in investing activities (43,176) (13,227) (56,403)
--------- --------- ---------
Cash Flows from Financing Activities:
Proceeds from (repayment of) note payable (100,000) 100,000 --
Proceeds from sale of common stock and exercise of warrants 847,977 -- 847,977
Proceeds from issuance of common stock to founding stockholders 2,300 500 2,800
Repayment of loan payable, stockholder (1,000) -- (1,000)
Distribution to stockholder -- (4,606) (4,606)
Other (400) -- (400)
--------- --------- ---------
Net cash provided by financing activities 748,877 95,894 844,771
--------- --------- ---------
Net Increase in Cash and Cash Equivalents 380,796 61,651 442,447
Cash and Cash Equivalents, Beginning 61,759 108 108
--------- --------- ---------
Cash and Cash Equivalents, Ending $ 442,555 $ 61,759 $ 442,555
========= ========= =========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 1,082 $ 2,424
========= =========
Non-cash investing and financing activities:
Investment in subsidiary by means of payable to stockholder $ 1,000
=========
Issuance of common stock for receivable $ 900
=========
Patent contributed to Company by certain stockholders $ 7,083
=========
</TABLE>
See notes to consolidated financial statements.
F-5
<PAGE> 33
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND CAPITALIZATION
American Access Technologies, Inc. ("the Company") was incorporated
on October 21, 1996, under the laws of the State of Florida. The
Company's Certificate of Incorporation, as amended on November 25,
1996, authorizes the Company to issue and have outstanding at any
one time 10,000,000 shares of common stock, par value $.001 per
share and 1,000,000 shares of preferred stock, par value $.001 per
share. The Company was organized to acquire all of the voting
common stock of Vic Murray & Associates, Inc. ("VMA"). VMA was
incorporated on December 19, 1994, under the laws of the State of
Florida.
On October 21, 1996, the Company acquired all of the common stock
of VMA. Certain stockholders of the Company are related to the
stockholder of VMA. This transaction has been accounted for as a
reorganization of entities under common control, and, accordingly,
the acquisition has been accounted for in a manner similar to the
pooling of interests method. Retroactive effect has been given to
this acquisition in the accompanying consolidated financial
statements.
In October 1996 and December 1996, the Company issued an aggregate
of 1,400,000 shares of common stock to the founding stockholders of
the Company for the par value thereof. On February 11, 1997, the
Board of Directors declared a stock dividend in the amount of one
share for each share of common stock then outstanding, with each
stockholder to pay the Company the par value thereof. As a result
of this stock dividend, the previously issued and outstanding
1,400,000 shares of common stock became 2,800,000 shares of common
stock, with the total consideration of $2,800 (par value) having
been paid therefor. Retroactive effect has been given to this stock
split in the accompanying consolidated financial statements, and
all references to the number of shares of common stock gives effect
to the stock split effected on February 11, 1997.
BUSINESS
American Access Technologies, Inc. develops specialized products
for the telecommunications industry. The Company recently
introduced its first proprietary product, a Zone Cabling
Termination Cabinet (the "Product") which it plans to manufacture
and distribute to the telecommunications industry. The Product is a
device that is used in voice, computer and data transmission
systems throughout the world.
PRINCIPLES OF CONSOLIDATION
These accompanying consolidated financial statements include the
accounts of the Company and its wholly-owned subsidiary. All
intercompany accounts and transactions have been eliminated.
F-6
<PAGE> 34
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the amounts reported in
the financial statements and accompanying notes. Although these
estimates are based on management's knowledge of current events and
actions it may undertake in the future, they may ultimately differ
from actual results.
REVENUE RECOGNITION
The Company recognizes revenue from product sales at the time the
product is shipped to the customer. The Company does not generally
grant return privileges to customers.
CONCENTRATIONS OF CREDIT RISK
Financial instruments that potentially subject the Company to
concentrations of credit risk consist primarily of cash balances at
financial institutions that, from time to time, exceed federally
insured limits. The Company believes that such risks are minimized
as a result of the size and stature of the financial institution in
which the Company maintains its account.
DEVELOPMENT STAGE ENTERPRISE
As noted above, the Company was incorporated on October 21, 1996.
To date, the Company has been principally engaged in organizational
activities, the promotion of its product and raising capital.
Planned operations, as described above, have commenced but revenue
generated to date is not considered significant in relation to the
Company's business plan. Accordingly, the Company is considered to
be in the development stage, and the accompanying consolidated
financial statements represent those of a development stage
enterprise.
CASH AND CASH EQUIVALENTS
The Company considers all highly liquid investments, including
short-term securities, with an original maturity of three months
or less to be cash equivalents.
Short-term securities (generally commercial paper maturing in
approximately 30 days) are stated at cost plus accrued income,
which approximates market value.
INVENTORY
Inventory, which is primarily composed of parts, supplies and
certain product components, is stated at the lower of cost or
market, with cost determined using an average cost method. The
Company does not generally carry finished goods inventory.
F-7
<PAGE> 35
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
PROPERTY AND EQUIPMENT
Property and equipment are stated at cost. Depreciation is computed
on the straight-line method at rates based on the estimated useful
lives of the assets. Expenditures for major betterments and
additions are charged to the asset accounts, while replacements,
maintenance and repairs which do not extend the life of the
respective assets are charged to expense currently.
PATENT
The Company has capitalized certain incremental costs incurred
related to acquiring a patent on the Company's product. This patent
was pending at December 31, 1997; therefore, amortization of the
patent has not commenced.
PRODUCT DEVELOPMENT COSTS
Costs in connection with the development of the Company's product
are comprised of design, production, consulting and other related
professional fees. These costs have been charged to expense as
incurred.
NET LOSS PER COMMON SHARE
In 1997, the Company adopted Statement of Financial Accounting
Standards (SFAS) No. 128, "Earnings per Share" which requires the
presentation of both basic and diluted earnings (loss) per share.
Basic net loss per common share has been computed based upon the
weighted average number of shares of common stock outstanding
during the periods. The shares of common stock issued in connection
with the stock split effected in February 1997, have been
considered outstanding for all periods. In addition, the shares of
common stock issued to a director in February 1997, prior to an
initial registration of the Company's common stock and at a price
below the offering price at that time (see Note 7) have been
treated as outstanding during the entire period, pursuant to the
Securities and Exchange Commission Staff Accounting Bulletins. The
number of shares used in the computation were 3,083,000 and
2,850,000 for 1997 and 1996, respectively. Diluted net loss per
common share, assuming exercising of the warrants granted, is not
presented as the effect of conversion is anti-dilutive.
NOTE 2. BASIS OF PRESENTATION
As described above, the Company was incorporated on October 21, 1996,
and since that time has been primarily involved in organizational
activities, developing a strategic plan for the marketing and
distribution of its product and raising capital. Planned operations
have commenced, but little revenue has been generated to date.
Accordingly, the Company is considered to be in the development stage
and the accompanying consolidated financial statements represent those
of a development stage enterprise.
F-8
<PAGE> 36
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
NOTE 2. BASIS OF PRESENTATION (Continued)
The accompanying consolidated financial statements have been presented
in accordance with generally accepted accounting principles, which
assume the continuity of the Company as a going concern. However, as
discussed above, the Company is in the development stage and, therefore
has generated little revenue to date. As reflected in the accompanying
consolidated financial statements, the Company has incurred net losses
of $426,455 in 1997 and $61,642 in 1996, and reflects a deficit
accumulated during the development stage of $492,703 as of December 31,
1997. This condition raises substantial doubt as to the ability of the
Company to continue as a going concern.
Management's plans with regard to this matter include the adoption of a
business plan intended to define the Company's strategy for growth and
raising additional capital in order to increase revenues sufficient to
cover costs and expenses and generate positive cash flows. The Company
will distribute its product in the industrial and commercial markets
through manufacturer's representatives and distributors. During the
next twelve months, the Company anticipates that it will have various
contracts in place with major telecommunications companies throughout
the majority of the United States (see Note 12).
The eventual outcome of the success of management's plans cannot be
ascertained with any degree of certainty. The accompanying consolidated
financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
NOTE 3. CASH AND CASH EQUIVALENTS
<TABLE>
<S> <C>
Cash $ 42,555
Short-term securities 400,000
--------
$442,555
========
</TABLE>
NOTE 4. PROPERTY AND EQUIPMENT
<TABLE>
<CAPTION>
Estimated Useful Lives
(Years)
----------------------
<S> <C> <C>
Office furniture and equipment 3-5 $41,903
Less accumulated depreciation 6,626
-------
$35,277
=======
</TABLE>
NOTE 5. INCOME TAXES
The Company accounts for income taxes under the provisions of Statement
of Financial Accounting Standards (SFAS) No. 109, "Accounting for
Income Taxes". SFAS No. 109 requires the recognition of deferred tax
liabilities and assets for temporary differences, operating loss
carryforwards, and tax credit carryforwards existing at December 31,
1997. An effective tax rate of 34% was used to calculate the deferred
income taxes.
F-9
<PAGE> 37
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
NOTE 5. INCOME TAXES (Continued)
A temporary difference is a difference between the tax basis of an
asset or liability and its reported amount in the financial statements
that will result in taxable or deductible amounts in future years when
the asset is recovered or the liability is settled. Deferred taxes
represent the future tax return consequences of these differences.
As of December 31, 1997, the Company had net operating loss
carryforwards for federal income tax reporting purposes amounting to
approximately $488,000, which expire in varying amounts to the year
2012.
The Company has not recognized any benefit of such net operating loss
carryforwards in the accompanying consolidated financial statements in
accordance with the provisions of SFAS No. 109 as the realization of
this deferred tax benefit is not considered more likely than not. A
100% valuation allowance has been recognized to offset the entire
effect of the Company's net deferred tax asset. The Company's net
deferred tax asset position is composed primarily of the Company's tax
loss carryforwards.
The components of the deferred tax asset were as follows:
<TABLE>
<S> <C>
Deferred tax asset $ 166,000
Less valuation allowance (166,000)
---------
Net deferred tax asset $ --
=========
</TABLE>
In accordance with certain provisions of the Tax Reform Act of 1986, a
change in ownership of greater than 50% of a corporation within a three
year period will place an annual limitation on the corporation's
ability to utilize its existing tax benefit carryforwards. The
Company's utilization of its tax benefit carryforwards may be
restricted in the event of possible future changes in the ownership of
the Company from the exercise of warrants or other future issuances of
common stock.
NOTE 6. PREFERRED STOCK
The Company is authorized to issue 1,000,000 shares of preferred stock,
par value $.001. The Board of Directors of the Company has the
authority, without further action by stockholders, to issue the
preferred stock in one or more series, and to fix for any series the
dividend rate, redemption price, liquidation or dissolution
preferences, conversion rights, voting rights and other preferences and
privileges. As of December 31, 1997, the Company has not designated any
series of preferred stock and no shares of preferred stock have been
issued or are outstanding.
F-10
<PAGE> 38
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
NOTE 7. COMMON STOCK
PRIVATE PLACEMENT OF SECURITIES
During the period from February to April 1997, the Company raised
additional capital through a private placement offering of its
securities. The private placement offering consisted of a maximum
of 100,000 units, each unit consisting of four shares of common
stock being offered by the Company on a "best efforts" basis at a
price of $6.00 per unit through a Placement Agent. Upon sale of the
units, the Company would receive gross proceeds of $600,000, before
payment of commissions and other offering costs. The Placement
Agent received a stipulated commission of 10% of funds received
from the offering and certain expense allowance and administrative
fee of 3% and 2% of the funds received from the offering,
respectively, and was issued warrants to purchase 120,000 shares of
common stock at $3 per share.
The sale of these units resulted in the issuance of 400,000 shares
of common stock for net proceeds totaling $487,977.
Additionally, in September and October 1997, the Company issued
120,000 shares of common stock resulting from the exercise of the
Placement Agent warrants at $3.00 per share.
ISSUANCE OF COMMON STOCK TO DIRECTOR FOR SERVICES
In February 1997, the Board of Directors authorized the issuance of
50,000 shares of common stock to a newly elected director, with
payment of par value thereof. These shares have been recorded in
the accompanying consolidated financial statements at their
estimated fair value of $1.50 per share, as measured by the
offering price of the Company's common stock in the 1997 private
placement of securities which took place at or about that time (see
above). Inasmuch as these shares were issued to the director, the
estimated fair value of these shares ($75,000) has been charged to
expense in 1997 and included in management and consulting fees,
officers/directors/stockholder.
RESIGNATION OF OFFICERS AND RETIREMENT OF COMMON STOCK AND WARRANTS
In August 1997, the consulting agreement between an officer and the
Company was modified (see Note 8). The modified agreement
stipulated that the officer return 200,000 shares of common stock
which was originally sold to the officer for $.001 per share. The
Company also canceled 70,000 warrants at $8.00 per share which were
held by the officer. In December 1997, the Company dismissed the
services of the officer (see Note 9).
On December 9, 1997, the Company executed a management termination
agreement with another officer. Under the terms of the agreement,
the officer returned 200,000 shares of common stock. The common
stock was originally sold to the officer for $.001 per share. The
officer has agreed to abide by certain terms regarding
non-disclosure of information and trade secrets which are effective
for two years subsequent to the date of the agreement.
F-11
<PAGE> 39
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
NOTE 7. COMMON STOCK (Continued)
WARRANTS
On February 11, 1997, the Board of Directors authorized the
issuance of 700,000 warrants to purchase one share common stock per
warrant at an exercise price of $8.00 per share expiring on
February 11, 2000. In August 1997, warrants to purchase 70,000
shares were cancelled in connection with the resignation of an
officer/stockholder (see above), resulting in remaining warrants to
purchase a total of 630,000 shares of common stock outstanding at
December 31, 1997.
NOTE 8. RELATED PARTY TRANSACTIONS
NOTE PAYABLE - BRIDGE BANK, LTD.
In December 1996, the Company arranged a $100,000 note payable to
Bridge Bank, Ltd., considered one of the founding stockholders of
the Company. The obligation was repaid in February 1997, from the
net proceeds of the 1997 private placement of securities (see Note
7). The note provided for interest at 15%; interest expense on the
note amounted to approximately $2,400 in 1997 and $1,200 in 1996.
MANAGEMENT AGREEMENTS
The Company entered into management agreements with four
stockholders dated October 21, 1996, on a month-to-month basis not
to exceed eighteen months. The agreements provide for compensation
of $60,000 per year per stockholder. On December 9, 1997, one of
the agreements was terminated through a management termination
agreement (see Note 7).
CONSULTING AGREEMENT
The Company entered into a consulting agreement with one of its
stockholders dated October 21, 1996, on a month-to-month basis. The
agreement provides for compensation of $60,000 per year. This
agreement was modified on August 28, 1997, reducing the
compensation base to $30,000. In addition, the modified agreement
stipulated the return of 200,000 shares of common stock and
cancellation of 70,000 stock purchase warrants.
NOTE 9. COMMITMENTS AND CONTINGENCIES
LEASE COMMITMENTS
The Company leases its administrative facilities under an operating
lease, which expires in 1999. Future minimum rentals due under the
lease are approximately as follows for the years ending December
31:
<TABLE>
<S> <C>
1998 $37,600
1999 37,600
-------
$75,200
=======
</TABLE>
Rent charged to operations amounted to approximately $35,000 in
1997 and $6,000 in 1996.
F-12
<PAGE> 40
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
NOTE 9. COMMITMENTS AND CONTINGENCIES (Continued)
PENDING LITIGATION
The Company is involved in litigation with a former
officer/stockholder of the Company in connection with a modified
consulting agreement with the Company (see Note 7) whereby he
surrendered 200,000 shares of common stock and cancelled 70,000
stock warrants previously held. The former officer is currently
seeking a rescission of this consulting agreement, damages for
failure to make consulting payments and the present value of the
stock options he agreed to surrender and the value of the 200,000
shares of common stock which he surrendered.
The Company denies that it has any liability to the individual and
has filed a motion to dismiss the case. Management plans to
vigorously defend the case. As of the date of this report, the case
was in its initial stages. Therefore, the amount of liability, if
any, cannot be estimated by management.
NOTE 10. DISCONTINUED OPERATIONS
In October 1996, the Company acquired all the voting common stock of
Vic Murray & Associates, Inc. in order to acquire the patent developed
by the stockholder of Vic Murray & Associates, Inc. and his son. All
assets were transferred to the Company at their historical cost. No
further business was conducted in Vic Murray & Associates, Inc.
therefore Vic Murray & Associates, Inc. is accounted for on a
retroactive basis as a discontinued operation in the accompanying
consolidated financial statements.
Summarized information for the discontinued operations for the year
ended December 31, 1996 is as follows:
<TABLE>
<S> <C>
Revenues $106,145
Costs and expenses 101,539
--------
Net income $ 4,606
========
</TABLE>
NOTE 11. FAIR VALUE OF FINANCIAL INSTRUMENTS
The respective carrying value of certain on-balance-sheet financial
instruments approximated their fair value. These instruments include
cash, accounts receivable and accounts payable. Fair values were
assumed to approximate carrying values for these financial instruments
since they are short-term in nature and their carrying amounts
approximate fair values or they are receivable or payable on demand.
F-13
<PAGE> 41
AMERICAN ACCESS TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
NOTE 12. CONTRACTS WITH DISTRIBUTORS
As of December 31, 1997, the Company had entered into Stocking
Distributor Agreements with seven distributors. The agreements set
forth terms whereby the distributors may purchase products from the
Company for resale to their customers within the U.S. and Canada and
Mexico when the Company releases its products for sale in those
countries. The prices for the products covered by the agreements are
based upon the intention of the distributors to purchase a minimum
number of units during the next twelve months after execution of the
agreements (an aggregate of approximately 60,000 units as of December
31, 1997). Revenue from these future sales will be recorded at such
time as the units are shipped to the distributors. The agreements are
for a term of one year and are automatically renewed each year
thereafter unless either party gives written notice of its intent to
cancel the arrangement, and contain, among other things, a warranty
effective for one year after the date of sale.
In February 1998, the Company executed a value added reseller agreement
with another company, in order to actively market and sell the product.
The reseller will have exclusive rights in the state of Texas to market
the product through its direct sales. The agreement stipulates that the
reseller will purchase a minimum of 4,000 units in the next three
years. Revenue from these future sales will be recorded at such time as
the units are shipped to the customer.
NOTE 13. OTHER MATTERS
MAJOR CUSTOMER
During the year ended December 31, 1997, the Company had one
customer that accounted for approximately 74% of sales.
MAJOR SUPPLIER
The Company outsources its entire product prototyping, production,
manufacturing, assembly and packaging operations to a single
independent supplier.
OTHER
In January 1998, Underwriter Laboratories, Inc. authorized the
Company to apply the UL mark to its product. Management believes
that the UL mark distinguishes the quality of the product due to
the requirements necessary to bear the UL mark and that recognition
of the UL mark should enhance sales.
F-14
<PAGE> 42
-----------------
No dealer, salesman or any other person has been authorized to give any
information or to make any representation other than those contained in this
prospectus, and, if given or made, such information or representations must not
be relied upon as having been authorized by the Company.
-----------------
This Prospectus does not constitute an offer of any securities other than
those to which it relates or an offer to sell or a solicitation of any offer to
buy any securities in any jurisdiction to any person to whom it is unlawful to
make such offer in such jurisdiction. The delivery of this Prospectus at any
time does not imply that the information herein is correct as of any time
subsequent to its date. Notwithstanding the foregoing, the Company has
undertaken to amend this Prospectus in the event of any fundamental changes in
the affairs of the Company.
TABLE OF CONTENTS
<TABLE>
<S> <C>
Prospectus Summary .............................................................
Risk Factors ...................................................................
Use of Proceeds ................................................................
Market for Securities
Recent Financing
Dividend Policy
Management's Discussion and
Analysis of Results of Operation
and Financial Condition
Business .......................................................................
Management .....................................................................
Indemnification ................................................................
Certain Relationships and Related Transactions .................................
Security Ownership of Certain Beneficial
Owners and Management .........................................................
Description of Securities ......................................................
Plan of Distribution/Selling Security Holders ..................................
Legal Matters ..................................................................
Experts ........................................................................
Additional Information .........................................................
Index to Financial Statements ..................................................
</TABLE>
AMERICAN ACCESS
TECHNOLOGIES, INC.
-----------------
PROSPECTUS
-----------------
<PAGE> 43
PART II - INFORMATION NOT REQUIRED IN PROSPECTUS
Item 24. Indemnification of Directors and Officers.
Reference is hereby made to the provisions of Section 607.0850 of the
Florida Business Corporation Act which provides for indemnification of directors
and officers under certain circumstances.
Reference is hereby made to Article IV of Registrant's Amended and
Restated Articles of Incorporation which is filed as Exhibit 3(a).
Item 25. Other Expenses of Issuance and Distribution.
The following table sets forth the expenses in connection with the
issuance and distribution of the securities offered hereby.
<TABLE>
<S> <C>
Registration Fee $ 3,646
Printing Expenses* 500
Legal Fees and Expenses* 10,000
Accounting Fees and Expenses* 8,346
Blue Sky Fees and Expenses* 3,000
Transfer Agent Fees and Expenses* 1,000
Misc.* 569
-------
Total $27,061
</TABLE>
*Estimated
Item 26. Recent Sales of Unregistered Securities.
The following provides information of all sales of outstanding stock
which were not registered under the Securities Act of 1933.
In connection with the Registrant's organizational activities,
2,000,000 shares of common stock were issued to founders and officers, Victor
Murray, Richard Murray, Steven J. Robinson, Bobby E. Story and Steve Jones for
par value of $.001 per share. Messrs. Robinson and Jones subsequently returned a
total of 400,000 shares to the Company for cancellation. The Company also issued
each of the foregoing persons a stock purchase warrant for 70,000 shares. Mr.
Jones' warrant was subsequently cancelled. Exemption from registration is
claimed under Section 4(2) of the Securities Act of 1933, as amended.
Shareholders, as directors and/or officers are "accredited investors" defined
in Rule 501.
The Company issued 50,000 shares of common stock to John W. Cooney, a
director, for $.001 per share on February 11, 1997. Exemption form registration
is claimed under Section 4(2) of the Securities Act of 1933, as amended.
Shareholders, as directors and/or officers are "accredited investors" defined
in Rule 501.
II-1
<PAGE> 44
On December 2, 1996 the Company sold 400,000 shares and on February
1997 the Company sold 400,000 shares of common stock to Bridge Bank, Ltd. at par
value of $.001 per share. Exemption from registration is claimed under Rule 504
of Regulation D, which does not require investors to be accredited or
sophisticated.
The Company issued a stock purchase warrant to Capital International
Securities Group, Inc. for 350,000 shares exercisable for $8.00 per share on
February 11, 1997. Exemption is claimed under Section 4(2) of the Securities
Acts of 1933, as amended. Holder, a member of NASD, is sophisticated.
From February 12 to April 11, 1997 the Company undertook a private
offering pursuant to Regulation D, Rule 504 and sold 400,000 shares of common
stock for $600,000. The Company issued 120,000 stock purchase warrants in
connection with the private offering, exercisable at $3.00 and such shares were
issued on exercise of the warrants. Exemption from registration is claimed
under Rule 504 of Regulation D, which does not require investors to be
accredited or sophisticated.
All of such securities were not solicited by advertising or any general
solicitation and, except such securities issued pursuant to Rule 504, contain a
restrictive legend.
Item 25. Exhibits.
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
3(a) Amended and Restated Articles of Incorporation of the Registrant*
3(b) Bylaws of the Registrant*
3(c) Form of $8.00 Stock Purchase Warrant expiring February 11, 2000*
3(d) Form of $3.00 Stock Purchase Warrant expiring February 11, 2000*
5.1 Opinion of counsel
8.2 Composit Exhibit of Stocking Distributor Agreements with Anixter,
Inc., State Electric Supply Company, and Data Com, Inc.*
8.3 Value Added Reseller Agreement with Data Star Computer Systems,
Inc.*
8.4 Engagement letter dated November 27, 1996 between Registrant and
Capital International Securities Group, Inc.*
8.5 Composit Exhibit of Management Agreements with Vic Murray and
Sons, Steve R. Jones, Steven K. Robinson and Nacex, Inc.*
8.6 Consulting Agreement dated August 28, 1997 between Registrant and
Steve R. Jones.*
8.7 Management Termination Agreement dated December 9, 1997 between
Steven K. Robinson and Registrant.*
8.8 Purchase Agreement dated October 21, 1996 between Registrant and
Victor E. Murray.*
8.9 Promissory Note dated December 2, 1996.*
11.1 Statement Re: Computation of Net Loss per Common Share.*
23 Consent of counsel is contained in Exhibit 5.1
23.1 Consent of Independent Certified Public Accountants*
</TABLE>
* Filed with Amendment No. 1.
Item 26. Undertakings.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons of
the registrant pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities
II-2
<PAGE> 45
(other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel, the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the questions whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue.
The undersigned registrant hereby undertakes:
1. To file, during any period in which offers or sales are being made,
a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the registration
statement.
(iii) To include any material information with respect to the plan
of distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement.
2. That for the purpose of determining any liability under the
Securities Act of 1935, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
3. To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination
of the offering.
II-3
<PAGE> 46
SIGNATURES
In accordance with the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements of filing on Form SB-2 and authorized this registration
statement to be signed on its behalf by the undersigned, in the City of
Altamonte Springs and State of Florida on April 20, 1998.
AMERICAN ACCESS TECHNOLOGIES, INC.
By /s/ Victor E. Murray
-------------------------------------------
President/ principal executive officer
In accordance with the requirements of the Securities Act of 1933, this
amendment to registration statement was signed by the following persons in the
capacities and on the dates stated.
<TABLE>
<CAPTION>
Signature Title Date
<S> <C> <C>
Victor E. Murray President and Director April 24, 1998
(Principal Executive Officer)
Richard A. Murray Vice President and Director "
Bobby E. Story Treasurer, (Principal Accounting "
Officer)
John W. Cooney Director "
Victor D. Phillips Director "
</TABLE>
<PAGE> 1
EXHIBIT 3(a)
AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
AMERICAN ACCESS TECHNOLOGY, INC.
***
Pursuant to the provisions of the Florida Business Corporation Act, the
undersigned corporation adopts the following Amended and Restated Articles of
Incorporation, which amendments to the Corporation's Articles of Incorporation,
as amended, contained therein were adopted by the shareholders of the
Corporation on November 25, 1996 by the holders of the outstanding common
stock, the only voting group, and the number of shares adopting the Amended and
Restated Articles of Incorporation by such group was sufficient for approval.
1. The name of the Corporation is AMERICAN ACCESS TECHNOLOGIES, INC.
2. The Articles of Incorporation of the Corporation we hereby amend to
read in their entirety as follows:
ARTICLE 1
Name
The name of the corporation is AMERICAN ACCESS TECHNOLOGIES, INC.
ARTICLE 2
Purpose
The purpose or purposes of the Corporation shall be to engage in any
lawful act or activity for which corporations may be organized under the
Florida Business Corporation Act.
<PAGE> 2
ARTICLE 3
Capital Stock
The total amount of capital stock which this Corporation has the authority
to issue is as follows:
10,000,000 shares of common stock, $.001 par value per share; and
1,000,000 shares of Preferred Stock, $.001 par value per share.
The Board of Directors is authorized, subject to limitations prescribed by
law, to provide for the issuance of the shares of such preferred stock in
series, and to establish from time to time the number of shares to be included
in each series, and to fix the designation, powers, preferences and relative,
participating, optional or other special rights of the shares of each series
and the qualifications, limitations or restrictions thereof.
The authority of the Board with respect to each series of preferred stock
shall include, but not be limited to, determination of the following:
A. The number of shares constituting the series and distinctive
designation of the series;
B. The dividend rate on the shares of the series, whether dividends
shall be cumulative, and, if so, from which date or dates, and the relative
rights of priority, if any, of payments of dividends on shares of the series;
C. Whether the series will have voting rights, and if so, the terms
of the voting rights;
2
<PAGE> 3
D. Whether the series will have conversion privileges, and, if so,
the terms and conditions of the conversion, including provision for adjustment
of the conversion rate in such events as the Board of Directors determines;
E. Whether or not the shares of the series will be redeemable; and,
if so, the terms and conditions of redemption, including the date or dates upon
or after which they shall be redeemable, and the amount per share payable in
case of redemption, which amount may vary under different conditions and at
different redemption dates;
F. Whether the series shall have a sinking fund for the redemption
or purchase of shares of the series, and, if so, the terms and amount of the
sinking fund;
G. The rights of the shares of the series in the event of voluntary
or involuntary liquidation, dissolution or winding up of the Corporation, and
the relative rights or priority, if any, of payment of shares of the series;
and
H. Any other relative terms, rights, preferences and limitations,
if any, of the series as the Board of Directors may lawfully fix under the laws
of the State of Florida as in effect at the time of the creation of such series.
ARTICLE 4
Indemnification of Directors, Officers and
Other Authorized Representatives
1. Indemnification. The Corporation shall indemnify its officers,
Directors, employees and agents against liabilities, damages, settlements and
expenses (including attorneys' fees) incurred in connection with the
Corporation's affairs, and shall advance such expenses to any such officers,
directors, employees and agents, to the fullest extent permitted by law.
3
<PAGE> 4
2. Effect of Modification. Any repeal or modification of any provision
of this Article 4 by the shareholders of the Corporation shall not adversely
affect any right to protection of a Director, officer, employee or agent of the
Corporation existing at the time of the such repeal or modification.
3. Liability Insurance. The Corporation shall have the power to purchase
and maintain insurance on behalf of any person who is or was a Director,
officer, employee or agent of the Corporation or is or was serving at the
request of the Corporation as a Director, officer, employee or agent to another
corporation, partnership, joint venture, trust or other enterprise, against any
liability asserted against him and incurred by him in any such capacity or
arising out of his status as such, whether or not the Corporation would have
the power to indemnify him against liability under the provision of this
Article 4.
4. No Rights of Subrogation. Indemnification hereunder and under the
Bylaws shall be a personal right and the Corporation shall have no liability
under this Article 4 to any insurer or any person, corporation, partnership,
association, trust or other entity (other than the heirs, executors or
administrators of such person) by reason of subrogation, assignment or
succession by any other means to the claim of any person to indemnification
hereunder or under the Corporation's Bylaws.
ARTICLE 5
Right to Amend or Repeal Article
The Corporation reserves the right to amend, alter, change or repeal any
provision contained in these Amended and Restated Articles of Incorporation or
any amendment hereto,
4
<PAGE> 5
in the manner now or hereafter prescribed by statute, and all rights and powers
herein conferred on shareholders are granted subject to this reserved power.
ARTICLE 6
Severability
In the event any provision (including any provision within a single
article, section, paragraph or sentences) of these Articles should be
determined by a court of competent jurisdiction to be invalid, prohibited or
unenforceable for any reason, the remaining provisions and parts hereof shall
not be in any way impaired and shall remain in full force and effect and
enforceable to the fullest extent permitted by law.
ARTICLE 7
Stock Split
Each share of the Corporation is outstanding common stock, $.10 par
share, shall be and they are hereby automatically changed (without any further
act) into 200 shares of common stock, $.001 par value share.
The foregoing stock split shall be accomplished in the following manner:
(1) All certificates representing issued shares which are in
existence as of the close of business on the date hereof (the "Record Date")
shall thereafter, without any further action being taken, represent the same
number of shares as they theretofore represented.
(2) The appropriate officers of the Corporation are authorized and
directed, as soon as practicable after the close of the business on the Record
Date, to cause to be issued and delivered to each shareholder of record as of
the close of business
5
<PAGE> 6
on the Record Date certificates representing the additional shares of the
Corporation's common stock to which they shall be entitled pursuant to the
foregoing stock split.
The Board of Directors of the Corporation or any executive committee
thereof is empowered to adopt further rules and regulations concerning the
foregoing change and to appropriately adjust any outstanding options, warrants
or other securities which are convertible into shares of the Corporation's
common stock, $.10 par value.
Dated: November 25, 1996 AMERICAN ACCESS
TECHNOLOGY, INC.
By:/s/Victor S. Murray
------------------------------------
President
6
<PAGE> 1
EXHIBIT 3(a)
AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
AMERICAN ACCESS TECHNOLOGY, INC.
***
Pursuant to the provisions of the Florida Business Corporation Act, the
undersigned corporation adopts the following Amended and Restated Articles of
Incorporation, which amendments to the Corporation's Articles of Incorporation,
as amended, contained therein were adopted by the shareholders of the
Corporation on November 25, 1996 by the holders of the outstanding common
stock, the only voting group, and the number of shares adopting the Amended and
Restated Articles of Incorporation by such group was sufficient for approval.
1. The name of the Corporation is AMERICAN ACCESS TECHNOLOGIES, INC.
2. The Articles of Incorporation of the Corporation we hereby amend to
read in their entirety as follows:
ARTICLE 1
Name
The name of the corporation is AMERICAN ACCESS TECHNOLOGIES, INC.
ARTICLE 2
Purpose
The purpose or purposes of the Corporation shall be to engage in any
lawful act or activity for which corporations may be organized under the
Florida Business Corporation Act.
<PAGE> 2
ARTICLE 3
Capital Stock
The total amount of capital stock which this Corporation has the authority
to issue is as follows:
10,000,000 shares of common stock, $.001 par value per share; and
1,000,000 shares of Preferred Stock, $.001 par value per share.
The Board of Directors is authorized, subject to limitations prescribed by
law, to provide for the issuance of the shares of such preferred stock in
series, and to establish from time to time the number of shares to be included
in each series, and to fix the designation, powers, preferences and relative,
participating, optional or other special rights of the shares of each series
and the qualifications, limitations or restrictions thereof.
The authority of the Board with respect to each series of preferred stock
shall include, but not be limited to, determination of the following:
A. The number of shares constituting the series and distinctive
designation of the series;
B. The dividend rate on the shares of the series, whether dividends
shall be cumulative, and, if so, from which date or dates, and the relative
rights of priority, if any, of payments of dividends on shares of the series;
C. Whether the series will have voting rights, and if so, the terms
of the voting rights;
2
<PAGE> 3
D. Whether the series will have conversion privileges, and, if so,
the terms and conditions of the conversion, including provision for adjustment
of the conversion rate in such events as the Board of Directors determines;
E. Whether or not the shares of the series will be redeemable; and,
if so, the terms and conditions of redemption, including the date or dates upon
or after which they shall be redeemable, and the amount per share payable in
case of redemption, which amount may vary under different conditions and at
different redemption dates;
F. Whether the series shall have a sinking fund for the redemption
or purchase of shares of the series, and, if so, the terms and amount of the
sinking fund;
G. The rights of the shares of the series in the event of voluntary
or involuntary liquidation, dissolution or winding up of the Corporation, and
the relative rights or priority, if any, of payment of shares of the series;
and
H. Any other relative terms, rights, preferences and limitations,
if any, of the series as the Board of Directors may lawfully fix under the laws
of the State of Florida as in effect at the time of the creation of such series.
ARTICLE 4
Indemnification of Directors, Officers and
Other Authorized Representatives
1. Indemnification. The Corporation shall indemnify its officers,
Directors, employees and agents against liabilities, damages, settlements and
expenses (including attorneys' fees) incurred in connection with the
Corporation's affairs, and shall advance such expenses to any such officers,
directors, employees and agents, to the fullest extent permitted by law.
3
<PAGE> 4
2. Effect of Modification. Any repeal or modification of any provision
of this Article 4 by the shareholders of the Corporation shall not adversely
affect any right to protection of a Director, officer, employee or agent of the
Corporation existing at the time of the such repeal or modification.
3. Liability Insurance. The Corporation shall have the power to purchase
and maintain insurance on behalf of any person who is or was a Director,
officer, employee or agent of the Corporation or is or was serving at the
request of the Corporation as a Director, officer, employee or agent to another
corporation, partnership, joint venture, trust or other enterprise, against any
liability asserted against him and incurred by him in any such capacity or
arising out of his status as such, whether or not the Corporation would have
the power to indemnify him against liability under the provision of this
Article 4.
4. No Rights of Subrogation. Indemnification hereunder and under the
Bylaws shall be a personal right and the Corporation shall have no liability
under this Article 4 to any insurer or any person, corporation, partnership,
association, trust or other entity (other than the heirs, executors or
administrators of such person) by reason of subrogation, assignment or
succession by any other means to the claim of any person to indemnification
hereunder or under the Corporation's Bylaws.
ARTICLE 5
Right to Amend or Repeal Article
The Corporation reserves the right to amend, alter, change or repeal any
provision contained in these Amended and Restated Articles of Incorporation or
any amendment hereto,
4
<PAGE> 5
in the manner now or hereafter prescribed by statute, and all rights and powers
herein conferred on shareholders are granted subject to this reserved power.
ARTICLE 6
Severability
In the event any provision (including any provision within a single
article, section, paragraph or sentences) of these Articles should be
determined by a court of competent jurisdiction to be invalid, prohibited or
unenforceable for any reason, the remaining provisions and parts hereof shall
not be in any way impaired and shall remain in full force and effect and
enforceable to the fullest extent permitted by law.
ARTICLE 7
Stock Split
Each share of the Corporation is outstanding common stock, $.10 par
share, shall be and they are hereby automatically changed (without any further
act) into 200 shares of common stock, $.001 par value share.
The foregoing stock split shall be accomplished in the following manner:
(1) All certificates representing issued shares which are in
existence as of the close of business on the date hereof (the "Record Date")
shall thereafter, without any further action being taken, represent the same
number of shares as they theretofore represented.
(2) The appropriate officers of the Corporation are authorized and
directed, as soon as practicable after the close of the business on the Record
Date, to cause to be issued and delivered to each shareholder of record as of
the close of business
5
<PAGE> 6
on the Record Date certificates representing the additional shares of the
Corporation's common stock to which they shall be entitled pursuant to the
foregoing stock split.
The Board of Directors of the Corporation or any executive committee
thereof is empowered to adopt further rules and regulations concerning the
foregoing change and to appropriately adjust any outstanding options, warrants
or other securities which are convertible into shares of the Corporation's
common stock, $.10 par value.
Dated: November 25, 1996 AMERICAN ACCESS
TECHNOLOGY, INC.
By:/s/Victor S. Murray
------------------------------------
President
6
<PAGE> 7
EXHIBIT 3(b)
BY-LAWS
AMERICAN ACCESS TECHNOLOGIES, INC.
ARTICLE I - OFFICES
Section 1. The registered office of the corporation in the State of
Florida shall initially be at: 164 Golf Club Drive, Longwood, Florida, or as
further directed by the Board of Directors. The registered agent in charge
thereof shall be Bobby E. Story.
Section 2. The corporation may also have offices at such other places
as the Board of Directors may from time to time appoint or the business of the
corporation may require.
ARTICLE II - SEAL
Section 1. The corporate seal shall have inscribed thereon the name of
the corporation, the year of its organization and the words "Corporate Seal,
Florida".
ARTICLE III - STOCKHOLDERS' MEETINGS
Section 1. Meetings of stockholders shall be held at the registered
office of the corporation in this state or at such place, either within or
without this state, as may be selected from time to time by the Board of
Directors.
Section 2. ANNUAL MEETINGS: The annual meeting of the stockholders
shall be held on the 15th of June of in each year if not a legal holiday, and
if a legal holiday, then on the next secular day following at 10:00 o'clock
A.M., when they shall elect a Board of Directors and transact such other
business and may elect a Board of Directors and transact such other business as
may properly be brought before the meeting. If the annual meeting for election
of directors is not held on the date designated therefor, the directors shall
cause the meeting to be held as soon thereafter as convenient.
Section 3. ELECTION OF DIRECTORS: Elections of the directors of the
corporation shall be by written or verbal ballot.
1
<PAGE> 8
Section 4. SPECIAL MEETINGS: Special meetings of the stockholders may
be called at any time by the Presidency, or the Board of Directors, or
stockholders entitled to cast at least one-fifth of the votes which all
stockholders are entitled to cast at the particular meeting. At any time, upon
written request of any person or persons who have duly called a special meeting,
it shall be the duty of the Secretary to fix the date of the meeting, to be held
not more than sixty days after receipt of the request, and to give due notice
thereof. If the Secretary shall neglect or refuse to fix the date of the meeting
and give notice thereof, the person or persons calling the meeting may do so.
Business transacted at all special meetings shall be confined to the objects
stated in the call and matters germane thereto unless all stockholders entitled
to vote are present and consent.
Written notice of a special meeting of stockholders stating the time
and place and object thereof, shall be given to each stockholder entitled to
vote thereat at least 10 days before such meeting, unless a greater period of
notice is required by statute in a particular case.
Section 5. QUORUM: A majority of the outstanding shares of the
corporation entitled to vote, represented in person or by proxy, shall
constitute a quorum at a meeting of stockholders. If less than a majority of the
outstanding shares entitled to vote is represented at a meeting, a majority of
the shares so represented may adjourn the meeting from time to time without
further notice. At such adjourned meeting at which a quorum shall be present or
represented, any business may be transacted which might have been transacted at
the meeting as originally noticed. The stockholders present at a duly organized
meeting may continue to transact business until adjournment, notwithstanding the
withdrawal of enough stockholders to leave less than a quorum.
Section 6. PROXIES: Each stockholder entitled to vote at a meeting of
stockholders or to express consent or dissent to corporate action in writing
without a meeting may authorize
2
<PAGE> 9
another person or persons to act for him by proxy, but no such proxy shall be
voted or acted upon after three years from its date, unless the proxy provides
for a longer period.
A duly executed proxy shall be irrevocable if it states that it is
irrevocable and if, and only as long as, it is coupled with an interest
sufficient in law to support an irrevocable power. A proxy may be made
irrevocable regardless of whether the interest with which it is coupled is an
interest in the stock itself or an interest in the corporation generally. All
proxies shall be filed with the Secretary of the meeting before being voted
upon.
Section 7. NOTICE OF MEETINGS: Whenever stockholders are required or
permitted to take any action at a meeting, a written notice of the meeting shall
be given which shall state the place, date and hour of the meeting, and, in the
case of a special meeting, the purpose or purposes for which the meeting is
called.
Unless otherwise provided by law, written notice of any meeting shall
be given not less than ten nor more than sixty days before the date of the
meeting to each stockholder entitled to vote at such meeting.
Section 8. CONSENT IN LIEU OF MEETINGS: Any action required to be taken
at any annual or special meeting of stockholders of a corporation, or any action
which may be taken at any annual or special meeting of such stockholders, may be
taken without a meeting, without prior notice and without a vote, if a consent
in writing, setting forth the action so taken, shall be signed by the holders of
outstanding stock having not less than the minimum number of votes that would be
necessary to authorize or take such action at a meeting at which all shares
entitled to vote thereon were present and voted. Prompt notice of the taking of
the corporate action without a meeting by less than unanimous written consent
shall be given to those stockholders who have not consented in writing.
Section 9. LIST OF STOCKHOLDERS: The officer who has charge of the
stock ledger
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<PAGE> 10
of the corporation shall prepare and make, at least ten days before every
meeting of stockholders a complete list of the stockholders entitled to vote at
the meeting, arranged in alphabetical order, and showing the address of each
stockholder and the number of shares registered in the name of each stockholder.
No share of stock upon which any installment is due and unpaid shall be voted at
any meeting. The list shall be open to the examination of any stockholder, for
any purpose germane to the meeting, during ordinary business hours for a period
of at least ten days prior to the meeting, either at a place within the city
where the meeting is to be held, which place shall be specified in the notice of
the meeting, or, if not so specified, at the place where the meeting is to be
held. The list shall also be produced and kept at the time and place of the
meeting during the whole time thereof, and may be inspected by any stockholder
who is present.
ARTICLE IV DIRECTORS
Section 1. The business and affairs of this corporation shall be
managed by its Board of Directors, at least two (2) in number. The board may be
expanded to a total of seven upon adoption of such a resolution by the majority
of the directors. The directors need not be residents of this state or
stockholders in the corporation. They shall be elected by the stockholders at
the annual meeting of stockholders of the corporation, and each director shall
be elected for the term of one year, and until his successor shall be elected
and shall qualify or until his earlier resignation or removal.
Section 2. REGULAR MEETINGS: Regular meetings of the Board shall be
held without notice at the registered office of the corporation, or at such
other time and place as shall be determined by the Board
Section 3. SPECIAL MEETINGS: Special Meetings of the Board may be
called by the President with 1 day notice to each director, either personally,
by telephone, by mail, or by telegram. Special meetings shall be called by the
President or Secretary in like manner and on like notice on the written request
of a majority of the directors in office.
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<PAGE> 11
Section 4. QUORUM: A majority of the total number of directors shall
constitute a quorum for the transaction of business.
Section 5. CONSENT IN LIEU OF MEETING; Any action required or permitted
to be taken at any meeting of the Board of Directors, or of any committee
thereof, may be taken without a meeting if all members of the Board or
committee, as the case may be, consent thereto in writing, and the writing or
writings are filed with the minutes of proceedings of the Board or committee.
The Board of Directors may hold its meetings, and have an office or offices,
outside of this state.
Section 6. CONFERENCE TELEPHONE: One or more directors may participate
in a meeting of the Board, of a committee of the Board or of the stockholders,
by means of conference telephone or similar communications equipment by means of
which all persons participating in the meeting can hear each other;
participation in this manner shall constitute presence in person at such
meeting.
Section 7. COMPENSATION: Directors as such, shall not receive any
stated salary for their services, but by resolution of the board, a fixed sum
and expenses of attendance, if any, may be allowed for attendance at each
regular or special meeting of the Board PROVIDED, that nothing herein contained
shall be construed to preclude any director from serving the corporation in any
other capacity and receiving compensation therefor.
Section 8. REMOVAL: Any director or the entire Board of Directors may
be removed, with or without cause, by the holders of a majority of the shares
than entitled to vote at an election of directors, except that when cumulative
voting is permitted, if less than the entire Board is to be removed, no director
may be removed without cause if the votes cast against his removal would be
sufficient to elect him if then cumulatively voted at an election of the entire
Board of Directors, or, if there be classes of directors, at an election of the
class of directors of which he is a part.
5
<PAGE> 12
ARTICLE V OFFICERS
Section 1. The executive officers of the corporation shall be chosen by
the directors and shall consist of a President, Secretary and Treasurer. The
Board of Directors may also choose a Chairman, one or more Vice Presidents and
such other officers as it shall deem necessary. Any number of offices may be
held by the same person.
Section 2. SALARIES: Salaries of all officers and agents of the
corporation shall be fixed by the Board of Directors.
Section 3. TERM OF OFFICE: The officers of the corporation shall hold
office for one year and until their successors are chosen and have qualified.
Any officer or agent elected or appointed by the Board may be removed by the
Board of Directors whenever in its judgment the best interest of the corporation
will be served thereby.
Section 4. PRESIDENT: The President shall be the chief executive
officer of the corporation; he shall preside at all meetings of the stockholders
and directors; he shall have general and active management of the business of
the corporation shall see that all orders and resolutions of the Board are
carried into effect, subject; however, to the right of the directors to delegate
any specific powers, except such as may be by statute exclusively conferred on
the President, to any other officer or officers of the corporation. He shall
execute bonds, mortgages and other contracts requiring a seal, under the seal of
the corporation. He shall be EX-OFFICIO a member of all committees, and shall
have the general power and duties of supervision and management usually vested
in the office of President of a corporation.
Section 5. SECRETARY: The Secretary shall attend all sessions of the
Board and all meetings of the stockholders and act as clerk thereof, and record
all the votes of the corporation and the minutes of all its transactions in a
book to be kept for that purpose, and shall perform like duties for all
committees of the Board of Directors when required. He shall give, or cause to
be given, notice of all meetings of the stockholders and of the Board of
Directors, and shall perform such other duties as may be prescribed by the Board
of Directors or President, and under whose supervision he shall be. He shall
keep in safe custody the corporate seal of the corporation, and when authorized
by the Board, affix the same to any instrument requiring it.
6
<PAGE> 13
Section 6. TREASURER: The Treasurer shall have custody of the corporate
funds and securities and shall keep full and accurate accounts of receipts and
disbursements in books belonging to the corporation, and shall keep the moneys
of the corporation in a separate account to the credit of the corporation. He
shall disburse the funds of the corporation as may be ordered by the Board,
taking proper vouchers for such disbursements, and shall render to the President
and directors, at the regular meetings of the Board, or whenever they may
require it, an account of all his transactions as Treasurer and of the financial
condition of the corporation.
ARTICLE VI VACANCIES
Section 1. Any vacancy occurring in any office of the corporation by
death, resignation, removal or otherwise, shall be filled by the Board of
Directors. Vacancies and newly created directorships resulting from any increase
in the authorized number of directors may be filled a majority of the directors
then in office, although less than a quorum, or by a sole remaining director. If
at any time, by reason of death or resignation or other cause, the corporation
should have no directors in office, then any officer or any stockholder or an
executor, administrator, trustee or guardian of a stockholder, or other
fiduciary entrusted with like responsibility for the person or estate of a
stockholder, may call a special meeting of stockholders in accordance with the
provisions of these By-Laws.
Section 2. RESIGNATIONS EFFECTIVE AT FUTURE DATE, When one or more
directors shall resign from the Board, effective at a future date, a majority of
the directors then in office, including those who have so resigned shall have
power to fill such vacancy or vacancies, the vote thereon to take effect when
such resignation or resignations shall become effective.
ARTICLE VII - CORPORATE RECORDS
Section 1. Any stockholder of record, in person or by attorney or other
agent, shall, upon written demand under oath stating the purpose thereof, have
the right during the usual hours for business to inspect for any proper purpose
the corporation's stock ledger, a list of its
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<PAGE> 14
stockholders, and its other books and records, and to make extracts therefrom. A
proper purpose shall mean a purpose reasonably related to such person's interest
as a stockholder. In every instance where an attorney or other agent shall be
the person who seeks the right to Inspection, the demand under oath shall be
accompanied by a power of attorney or such other writing which authorizes the
attorney or other agent to so act on behalf of the stockholder. The demand under
oath shall be directed to the corporation at its registered office in this state
or at its principal place of business.
ARTICLE VIII - STOCK CERTIFICATES, DIVIDENDS, ETC.
Section 1. The stock certificates of the corporation shall be numbered
and registered in the share ledger and transfer books of the corporation as they
are issued. They shall bear the facsimile of the corporate seal and shall bear
the facsimile of the President and Secretary; and be countersigned by the
Transfer Agent.
Section 2. TRANSFERS: Transfers of shares shall be made on the books of
the corporation upon surrender of the certificates therefor, endorsed by the
person named in the certificate or by attorney, lawfully constituted in writing
with signature guaranteed. No transfer shall be made which is inconsistent with
law.
Section 3. LOST CERTIFICATE: The corporation may issue a new
certificate of stock in the place of any certificate therefore signed by it,
alleged to have been lost, stolen or destroyed, and the corporation may require
the owner of the lost, stolen or destroyed certificate, or his legal
representative to give the corporation a bond sufficient to indemnify it against
any claim that maybe made against it on account of the alleged loss, theft or
destruction of any such certificate or the issuance of such new certificate.
Section 4. RECORD DATE: In order that the corporation may determine the
stockholders entitled to notice of or to vote at any meeting of stockholders or
any adjournment thereof, or to express consent to corporate action in writing
without a meeting, or entitled to receive payment of any dividend or other
distribution or allotment of any rights, or entitled to exercise any rights in
respect of any change, conversion or exchange of stock or for the purpose
8
<PAGE> 15
of any other lawful action, the Board of Directors may fix, in advance, a record
date, which shall not be more than sixty nor less than ten days before the date
of such meeting, nor wore than sixty days prior to any other action,
If no record date is fixed:
(a) The record date for determining stockholders entitled to notice of
or to vote at a meeting of stockholders shall be at the close of business on the
day next preceding the day on which notice is given, or, if notice is waived, at
the close of business on the day next preceding the day on which the meeting is
held.
(b) The record date for determining stockholders entitled to express
consent to corporate action in writing without a meeting, when no prior action
by the Board of Directors is necessary, shall be the day on which the first
written consent is expressed.
(c) The record date for determining stockholders for any other purpose
shall be at the close of business on the day on which the Board of Directors
adopts the resolution relating thereto.
(d) A determination of stockholders of record entitled to notice of or
to vote at a meeting of stockholders shall apply to any adjournment of the
meeting; provided, however, that the Board of Directors may fix a new record
date for the adjourned meeting.
Section 5. DIVIDENDS: The Board of Directors may declare and pay
dividends upon the outstanding shares of the corporation, from time to time and
to such extent as they deem advisable, in the manner and upon the terms and
conditions provided by statute and the Certificate of Incorporation.
Section 6. RESERVES: Before payment of any dividend there may be set
aside out of the net profits of the corporation such sum or sums as the
directors, from time to time, in their absolute discretion, think proper as a
reserve fund to meet contingencies, or for equalizing dividends, or for
repairing or maintaining any property of the corporation, or for such other
purpose as the directors shall think conducive to the interests of the
corporation, and the directors may abolish any such reserve in the manner in
which it was created.
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<PAGE> 16
ARTICLE IX - MISCELLANEOUS PROVISIONS
Section 1. CHECKS: All checks or demands for money and notes of the
corporation shall be signed by such officer or officers as the Board of
Directors may from time to time designate.
Section 2. FISCAL YEAR: The fiscal year shall begin on the first day of
January and end December 31st each year.
Section 3. NOTICE: Whenever written notice is required to be given to
any person, it may be given to such person, either personally or by sending a
copy thereof through the mail, or by telegram, charges prepaid, to his address
appearing on the books of the corporation, or supplied by him to the corporation
for the purpose of notice. If the notice is sent by mail or by telegraph, it
shall be deemed to have been given to the person entitled thereto when deposited
in the United States mail or with a telegraph office for transmission to such
person. Such notice shall specify the place, day and hour of the meeting and, in
the case of a special meeting of stockholders, the general nature of the
business to be transacted.
Section 4. WAIVER OF NOTICE: Whenever any written notice is required by
statute, or by the Certificate or the By-Laws of this corporation a waiver
thereof in writing, signed by the person or persons entitled to such notice,
whether before or after the time stated therein, shall be deemed equivalent to
the giving of such notice. Except in the case of a special meeting of
stockholders, neither the business to be transacted at nor the purpose of the
meeting need be specified in the waiver of notice of such meeting. Attendance of
a person either in person or by proxy, at any meeting shall constitute a waiver
of notice of such meeting, except where a person attends a meeting for the
express purpose of objecting to the transaction of any business because the
meeting was not lawfully called or convened.
Section 5. DISALLOWED COMPENSATION: Any payments made to an officer or
employee of the corporation such as a salary, commission, bonus, interest, rent,
travel or entertainment expense incurred by him, which shall be disallowed in
whole or in part as a deductible expense by the Internal Revenue Service, shall
be reimbursed by such officer or
10
<PAGE> 17
employee to the corporation to the full extent of such disallowance. It shall be
the duty of the directors, as a Board, to enforce payment of each such amount
disallowed. In lieu of payment by the officer or employee, subject to the
determination of the directors, proportionate amounts may he withheld from his
future compensation payments until the amount owed to the corporation has been
recovered.
Section 6. RESIGNATIONS: Any director or other officer may resign at
any time, such resignation to be in writing and to take effect from the time of
its receipt by the corporation, unless some time be fixed in the resignation and
then from that date. The acceptance of a resignation shall not be required to
make it effective.
ARTICLE X ANNUAL STATEMENT
Section 1. The President and the Board of Directors shall present at
each annual meeting a full and complete statement of the business and affairs of
the corporation for the preceding year. Such statement shall be prepared and
presented in whatever manner the Board of Directors shall deem advisable and
need not be verified by a Certified Public Accountant.
ARTICLE XI - INDEMNIFICATION AND INSURANCE:
Section 1. (a) RIGHT TO INDEMNIFICATION. Each person who was or is made
a party or is threatened to be made a party or is involved in any action, suit
or proceeding, whether civil, criminal, administrative or investigative
(hereinafter a "proceeding"), by reason of the fact that he or she, or a person
of whom he or she is the legal representative, is or was a director or officer,
of the Corporation or is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation or of a partnership,
Joint venture, trust or other enterprise, including service with respect to
employee benefit plans whether the basis of such proceeding is alleged action in
an official capacity as a director, officer, employee or agent or in any other
capacity while serving as a director, officer, employee or agent, shall be
indemnified and held harmless by the Corporation to the fullest extent
authorized by the Florida Business Corporation Act, as the same exists or may
hereafter be amended (but, in the case of any such
11
<PAGE> 18
amendment, only to the extent that such amendment permits the Corporation to
provide broader indemnification rights than said law permitted the Corporation
to provide prior to such amendment), against all expense, liability and loss
(including attorneys' fees, Judgments, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) reasonably incurred or suffered by
such person in connection therewith and such indemnification shall continue as
to a person who has ceased to be a director, officer, employee or agent and
shall inure to the benefit of his or her heirs, executors and administrators;
provided, however, that, except as provided in paragraph (b) hereof, the
Corporation shall indemnify any such person seeking indemnification in
connection with a proceeding (or part thereof) initiated by such person only if
such proceeding (or part thereof) was authorized by the Board of Directors of
the Corporation. The right to indemnification conferred in this Section shall be
a contract right and shall include the right to be paid by the Corporation the
expenses incurred in defending any such proceeding in advance of its final
disposition: provided, however, that, if the Florida Business Corporation Act
requires the payment of such expenses incurred by a director or officer in his
or her capacity as a director or officer (and not in any other capacity in which
service was or is rendered by such person while a director or officer,
including, without limitation, service to an employee benefit plan) in advance
of the final disposition of a proceeding, shall be made only upon delivery to
the corporation of an undertaking, by or on behalf of such director or officer,
to repay all amounts so advanced if it shall ultimately be determined that such
director or officer is not entitled to be indemnified under this Section or
otherwise. The Corporation may, by action of its Board of Directors, provide
indemnification to employees and agents of the Corporation with the same scope
and effect as the foregoing indemnification of directors and officers.
(b) RIGHT OF CLAIMANT TO BRING SUIT:
If a claim under paragraph (a) of this Section is not paid in full by
the Corporation within thirty days after a written claim has been received by
the Corporation, the claimant may at any time thereafter bring suit against the
Corporation to recover the unpaid amount of the claim and,
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<PAGE> 19
if successful in whole or in part, the claimant shall be entitled to be paifi
also the expense of prosecuting such claim. It shall be a defense to any such
action (other than an action brought to enforce a claim for expenses incurred in
defending any proceeding in advance of its final disposition where the required
undertaking, if any is required, has been tendered to the Corporation) that the
claimant has not met the standards of conduct which make it permissible under
the Florida Business Corporation Act for the Corporation to indemnify the
claimant for the amount claimed, but the burden of proving such defense shall be
on the Corporation. Neither the failure of the Corporation (including its Board
of Directors, independent legal counsel, or its stockholders) to have made a
determination prior to the commencement of such action that indemnification of
the claimant is proper in the circumstances because he or she has met the
applicable standard of conduct set forth in the Florida Business Corporation
Act, nor an actual determination by the Corporation (including its Board of
Directors, independent legal counsel or Its stockholders) that the claimant has
not met such applicable standard or conduct, shall be a defense to the action or
create a presumption that the claimant has not met the applicable standard or
conduct.
(c) Notwithstanding any limitation to the contrary contained in
sub-paragraphs (a) and 8 (b) of this section, the corporation shall to the
fullest extent permitted by the Florida Business Corporation Act, as the same
may be amended and supplemented, indemnify any and all persons whom it shall
have power to indemnify under said section from and against any and all of the
expenses, liabilities or other matters referred to in or covered by said
section, and the indemnification provided for herein shall not be deemed
exclusive of any other rights to which those indemnified may be entitled under
any By-law, agreement, vote of stockholders or disinterested Directors or
otherwise both as to action in his official capacity and as to action in another
capacity while holding such office, and shall continue as to a person who has
ceased to be director, officer, employee or agent and shall inure to the benefit
of the heirs, executors and administrators of such a person.
(d) INSURANCE:
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The Corporation may maintain insurance, at its expense, to protect
itself and any director, officer, employee or agent of the Corporation or
another corporation, partnership, joint venture, trust or other enterprise
against any such expense, liability or loss, whether or not the Corporation
would have the power to indemnify such person against such expense, liability or
loss under the Florida Business Corporation Act.
ARTICLE XII - AMENDMENTS
Section 1. These by-laws may be amended or repealed by the vote of
stockholders entitled to cast at least a majority of the votes which all
stockholders are entitled to cast thereon, at any regular or special meeting of
the stockholders, duly convened after notice of the stockholders of that
purpose.
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<PAGE> 1
EXHIBIT 3(c)
INCORPORATED UNDER THE LAWS OF THE STATE OF FLORIDA
WARRANT NUMBER OF
CERTIFICATE NO. WARRANTS
[LOGO]
AMERICAN ACCESS TECHNOLOGIES, INC.
STOCK PURCHASE WARRANT
VOID AFTER 3:00 P.M., EAST COAST TIME, IN FEBRUARY 11, 2000
REGISTERED HOLDER:___________________ NUMBER OF WARRANTS:_________________
This is to certify that, for value received, the Registered Holder, or assigns,
is entitled, subject to the terms and conditions hereinafter set forth, at or
before 3:00 P.M. on February 11, 2000, or such later time as may be determined
by the Corporation, to purchase shares of the common stock of American Access
Technologies, Inc. (the "Corporation") from the said corporation, for the
purchase price of $8.00 per share and to receive a certificate or certificates
for the common stock so purchased upon presentation and surrender to the
Corporation of this warrant with payment of the purchase price for each share
purchased. (a) The Corporation covenants and agrees that all shares which may
be delivered upon the exercise of this warrant will, upon delivery, be free from
all taxes, liens, and charges with respect to the purchase thereof, and shall be
fully paid and nonassessable. The Corporation covenants and agrees that it will
from time to time take all such action as may be requisite to assure that the
par value per share of its common stock is at all time equal to or less than the
current price per share pursuant to this warrant. (b) The number of shares
purchaseable upon the exercise of this warrant and the purchase price per share
shall be subject to adjustment from time to time as set forth herein. (c) If the
outstanding shares of common stock of the Corporation are increased, decreased,
or changed into, or exchanged for a different number of kind of shares or
securities through reorganization, merger, recapitalization, reclassification,
stock split, stock dividend, stock consolidation, or similar type of
reorganization transaction, an appropriate and proportionate adjustment shall be
made in the number and kind of shares as to which this warrant relates. Such
adjustment shall be made without change in the total price applicable to the
unexercised portion of this warrant, but with a corresponding adjustment in the
price of each share subject to the warrant. (d) If there shall be any
adjustment as provided above, the Corporation shall forthwith cause written
notice to be sent to the initial holder of this warrant at the address of such
holder shown on the books of the Corporation, which notice shall be accompanied
by a statement setting forth in reasonable detail the facts requiring any such
adjustment and the warrant price and number of shares purchaseable after such
adjustment, as the case may be. (e) This warrant shall not entitled the holder
hereof to any voting rights or other rights as a shareholder of the Corporation
unless and until this warrant shall be exercised. (f) this warrant and the
shares the holder hereof may purchase have not and will not be registered under
the Securities Act of 1933 or any applicable state securities law. The
Corporation may condition the exercise of this warrant or its transfer upon the
availability of an exemption from registration under all applicable securities
laws.
[SEAL]
<TABLE>
<S> <C>
IN WITNESS WHEREOF, the Corporation has caused this
warrant to be executed by the signatures of its duly
authorized officers and its corporate seal hereunto affixed.
</TABLE>
By: /s/ Victor E.Murray
- ------------- --------------------------
DATE President
<PAGE> 1
EXHIBIT 3(d)
INCORPORATED UNDER THE LAWS OF THE STATE OF FLORIDA
WARRANT NUMBER OF
CERTIFICATE NO. WARRANTS
[LOGO]
AMERICAN ACCESS TECHNOLOGIES, INC.
STOCK PURCHASE WARRANT
VOID AFTER 3:00 P.M., EAST COAST TIME, IN FEBRUARY 11, 2000
REGISTERED HOLDER:___________________ NUMBER OF WARRANTS:_________________
This is to certify that, for value received, the Registered Holder, or assigns,
is entitled, subject to the terms and conditions hereinafter set forth, at or
before 3:00 P.M. on February 11, 2000, or such later time as may be determined
by the Corporation, to purchase shares of the common stock of American Access
Technologies, Inc. (the "Corporation") from the said corporation, for the
purchase price of $8.00 per share and to receive a certificate or certificates
for the common stock so purchased upon presentation and surrender to the
Corporation of this warrant with payment of the purchase price for each share
purchased. (a) The Corporation covenants and agrees that all shares which may
be delivered upon the exercise of this warrant will, upon delivery, be free from
all taxes, liens, and charges with respect to the purchase thereof, and shall be
fully paid and nonassessable. The Corporation covenants and agrees that it will
from time to time take all such action as may be requisite to assure that the
par value per share of its common stock is at all time equal to or less than the
current price per share pursuant to this warrant. (b) The number of shares
purchaseable upon the exercise of this warrant and the purchase price per share
shall be subject to adjustment from time to time as set forth herein. (c) If the
outstanding shares of common stock of the Corporation are increased, decreased,
or changed into, or exchanged for a different number of kind of shares or
securities through reorganization, merger, recapitalization, reclassification,
stock split, stock dividend, stock consolidation, or similar type of
reorganization transaction, an appropriate and proportionate adjustment shall be
made in the number and kind of shares as to which this warrant relates. Such
adjustment shall be made without change in the total price applicable to the
unexercised portion of this warrant, but with a corresponding adjustment in the
price of each share subject to the warrant. (d) If there shall be any
adjustment as provided above, the Corporation shall forthwith cause written
notice to be sent to the initial holder of this warrant at the address of such
holder shown on the books of the Corporation, which notice shall be accompanied
by a statement setting forth in reasonable detail the facts requiring any such
adjustment and the warrant price and number of shares purchaseable after such
adjustment, as the case may be. (e) This warrant shall not entitled the holder
hereof to any voting rights or other rights as a shareholder of the Corporation
unless and until this warrant shall be exercised. (f) this warrant and the
shares the holder hereof may purchase have not and will not be registered under
the Securities Act of 1933 or any applicable state securities law. The
Corporation may condition the exercise of this warrant or its transfer upon the
availability of an exemption from registration under all applicable securities
laws.
[SEAL]
<TABLE>
<S> <C>
IN WITNESS WHEREOF, the Corporation has caused this
warrant to be executed by the signatures of its duly
authorized officers and its corporate seal hereunto affixed.
</TABLE>
By: /s/ Victor E.Murray
- ------------- --------------------------
DATE President
<PAGE> 1
EXHIBIT 8.2
STOCKING DISTRIBUTOR AGREEMENT
BETWEEN
AMERICAN ACCESS TECHNOLOGIES, INC.
AND
ANIXTER, INC.
THIS AGREEMENT ("Agreement") is made and entered into this 12th day of
March, 1997, between American Access Technologies, Inc. ("Seller") and Anixter,
Inc. ("Distributor").
1. PURPOSE
This Agreement sets forth terms whereby Distributor may purchase Products from
Seller for resale to its customers within the United States of America. This
territory shall extend to Canada and Mexico at such time as seller shall release
its products for sale in such countries.
2. PRICE, PAYMENT, AND REBATE PROGRAM
a) The prices for the Products covered by this Agreement shall be as set
forth in Exhibit "A" attached hereto. Based upon the intention of
Distributor to purchase a minimum of at lease Ten Thousand (10,000)
zone cabling termination cabinets during the next twelve months after
execution of this agreement, the Distributor will be entitled to a
twenty (20%) discount from the list price of the product as well as
other options covered under other agreements. Seller will give
Distributor 30 days advance notice of price changes but will recognize
current pricing on Distributor's outstanding bids scheduled for
delivery after the effective date of price changes. Distributor will
advise seller, in writing and within ten (10) days of notice of price
change a list of outstanding bids in order to receive current pricing.
b) Products will be paid for within forty five (45) days of shipment to
Distributor. Any unpaid invoices after such date will be subject to
interest at 18% per annum until paid.
3. DELIVERY
Each purchase order issued by Distributor will specify a delivery date. If a
delivery date specified in the purchase order cannot be met, Seller will advise
Distributor as soon as possible after receipt of the order and a new delivery
date will be agreed upon.
4. NEW PRODUCTS
Distributor and Seller agree that it is their intent to work toward a long-term
relationship for development and marketing of new Products. Seller agrees that
as long as Distributor performs well under this Agreement, Seller will continue
to bring new Products to Distributor for distribution consideration. Seller
warrants and represents to Distributor that any new products
<PAGE> 2
developed for distribution will be made available for review and stocking under
same terms and conditions.
5. RESALE
Distributor has the right to resell the Products anywhere in the United States
at whatever price is determined to be appropriate by Distributor. However,
should Seller wish to market its products outside the United States, Distributor
will be granted an opportunity to distribute our products.
6. TRAINING AND VALUE ADDED PROGRAM
a) Seller will provide training and support to Distributor for its
Products as long as this Agreement is in force. Upon request, Seller will
assist Distributor in the sale of Seller's Products to end users.
b) Seller has established a Value Added Program (YAP) whereby it will
train and certify selected contractors/technicians on the installation and
marketing of our products. This program includes a rebate program for
including our products in the specifications of future jobs and a rebate
for purchase of our products.
7. PRICE AND PRODUCT PROTECTION
a) Seller reserves the right to change prices at any time and agrees to
give Distributor thirty (30) days written notice of any such change. In the
event that Seller lowers its prices or alters the discounts available to
distributors, Distributor shall have the right to request price protection
for Products in Distributor's inventory. Upon such request, Seller will
grant a credit to Distributor in a amount equal to the difference between
the price paid and the new price (including additional discounts) for each
such Product in Distributor's inventory. All unshipped product will be
billed at the lower cost.
b) Seller agrees to provide Distributor with price change information no
less than thirty (30) days in advance of the effective date, which should
be sent directly to Distributor Inventory Management, attention Standard
Cost Group. Seller will submit required pricing information in an ASCII
Text, Tab delimited format. Distributor will provide the required pricing
file layout to Seller's designated point of contact who should be
responsible to address questions on pricing and/or file layout.
8. INVENTORY ADJUSTMENT PROCEDURE
In order to maintain a current stock of products, Distributor shall have the
right to to take stock once every quarter by returning Products in its inventory
to Seller for replacement with other Seller Products of Distributor choosing;
provided however, that the aggregate price of the replacement Products is equal
to the price of the original Products returned, and that the returned Products
are in new and unused condition. All shipping costs relating to the rotation of
Products will be borne by Distributor. Distributor shall be entitled to return
for full credit all
<PAGE> 3
unsold items, included in its first order from seller, after such merchandise
has been unsold for six (6) months. On all other orders, there shall be a twenty
(20%) percent restocking fee payable by Distributor.
9. WARRANTY
a) Seller's Products are warranted under normal use to be free from any
and all defects in design, materials and workmanship; to conform strictly
to the specifications and approved samples and to be fit and sufficient for
the purpose intended by the Seller for a period of one year from the date
of sale to the end user or such longer period as may be specified in
Seller's warranty from time to time.
b) Seller agrees to repair or replace, without charge, any part or
Product proven to be defective within the warranty period. Seller will pay
all shipping and delivery charges for warranty returns from Distributor.
This warranty shall be null and void in the event of misuse, accident,
alteration or unauthorized repair made to the Products. This warranty is
standard for all Seller's Products and any exceptions shall be stated in
writing to Distributor. This repair/replacement policy is the sole and
exclusive remedy for breach of any warranty herein and seller shall not be
responsible for any consequential damages.
c) Seller's Products and shipping cartons will have the product's serial
number written and bar coded. Distributor will be able to ship replacement
units from stock and return end user's defective Products for credit.
Warranty credit returns through Distributor will not be included in stock
rotation allotments. Seller will provide Distributor with a predetermined
supply of technical manuals and support materials for all applicable
Products. Seller will update Distributor's warranty department on any
noncontractual changes to their warranty policies and procedures. Seller
shall have a single point of contract for warranty issues.
d) Seller will require factory authorization before allowing the return
of any material. This includes incorrect merchandise, overshipments, or
defective equipment. Material sent without authorization will be returned
to sender.
e) Newly received merchandise, which is defective, will be corrected
through warranty by Seller.
10. OUT-OF-WARRANTY REPAIR
Seller agrees to repair units which are out of the warranty period for actual
cost of repairs not to exceed 50% of current suggested list price. The end user
will pay all shipping and delivery charges both ways for repairs out of
warranty. Seller agrees to maintain this repair service for Distributor's
customers for a period of at least two (2) years after termination of this
Agreement.
11. TRADEMARKS AND COPYRIGHTS
<PAGE> 4
Seller hereby assigns to Distributor the right to use its trademarks and
copyrights for the sale of each product covered during the life of this
Agreement.
12. MANUFACTURING
Distributor agrees that it has no manufacturing rights to any Products under
this Agreement and that any technical or business information provided to
Distributor will be used solely for the purpose of selling and supporting those
Products.
13. INDEMNITIES
Anything herein to the contrary notwithstanding, Seller shall protect, defend,
hold harmless, and indemnify Distributor from and against any and all claims,
actions, liabilities, losses, costs, damages, and expenses (a) arising out of
any actual or alleged infringement of any U.S. or foreign patent, copyright or
trademark by any product sold to Distributor hereunder, or any unfair
competition involving such Products, or (b) arising out of any actual or
alleged death of or injury to any person, damage to any property, or any other
damage, loss, cost or expense, by whomsoever suffered, resulting or claimed to
result in whole or in part from the use of any such Products, any actual or
alleged defect in such Products, whether latent or patent, including actual or
alleged improper construction or design of such Products or the failure of such
Products to comply with specifications or with any express or implied
warranties, or (c) arising out of any actual or alleged violation by any such
Products, or their manufacture, possession, use or sale, or any law, statute or
ordinance or any governmental administrative order, rule, or regulation.
14. INSURANCE
Seller shall obtain and maintain, at its expense, a policy or policies of
Product Liability Insurance, with Broad Form Vendor's Endorsement naming
Distributor, in such amounts and in such companies and containing such other
provisions which shall be satisfactory to Distributor, covering Products sold
to Distributor hereunder. All such policies shall provide that the coverage
thereunder shall not be terminated without at least thirty (30) days prior
written notice to Distributor. Certificates of Insurance shall be provided to
the Distributor upon request.
15. TERMINATION
This agreement is for a term of one year and is automatically renewed each year
thereafter unless either party gives written notice of its intent to cancel the
arrangement. The cancellation notice must be given to the other party at least
thirty (30) days before the anniversary date of this agreement. In the event of
termination, the provisions of Section 8 shall apply to Distributor's returning
inventory.
17. FORCE MAJEURE
Neither party shall be liable for any delays in performance caused by acts of
God, civil or military authority, fires or other circumstances beyond their
reasonable control.
<PAGE> 5
18. ENTIRE AGREEMENT
This is an entire agreement incorporating any and all verbal agreements and any
future modification, adjustments, additions, and/or changes shall be made in
writing, executed by both parties. All terms of Distributor's purchase orders,
except the quantity ordered and shipping addresses, shall be null and void and
superceded by this agreement.
19. ARBITRATION
Parties agree that should any dispute arise in the administration of this
agreement, that the dispute shall be resolved through arbitration under the
rules of the American Arbitration Association, with its location in Orange
County, Florida.
20. NOTICES
Notices required under this agreement shall be dispatched, postage prepaid as
follows:
Seller: American Access Technologies, Inc.
238 N. Westmonte Drive, Suite 210
Altamonte Springs, Florida, 32714
Distributor: Anixter, Inc.
4711 Golf Road
Skokie, Illinois, 60071
IN WITNESS WHEREOF, the parties have executed this Agreement on the dates
written below.
By: /s/ Gail L. Schniru By: /s/
------------------------------- --------------------------------
Title: Marketing Manager Title: CFO
---------------------------- -----------------------------
Company: Anixter, Inc. Company: American Access
Technologies, Inc.
<PAGE> 6
EXHIBIT "A"
AMERICAN ACCESS TECHNOLOGIES, INC.
Schedule of Product Pricing
STOCKING DISTRIBUTORS
Effective 1-96
ZCTC 1024 Zone Cable Termination Cabinet
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
UNITS ORDERED
- --------------------------- UNIT SALES
FROM TO LIST DISCOUNT PRICE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
List Price $550.00
Units 10,000 20.00% 440.00
</TABLE>
<PAGE> 7
STOCKING DISTRIBUTOR AGREEMENT
BETWEEN
AMERICAN ACCESS TECHNOLOGIES, INC.
AND
CED - AMERICAN ELECTRIC, INC.
THIS AGREEMENT ("Agreement") is made and entered into this 6th day of
March, 1997, between American Access Technologies, Inc. ("Seller") and CED -
American Electric, Inc. ("Distributor").
1. PURPOSE
This Agreement sets forth terms whereby Distributor may purchase Products from
Seller for resale to its customers within the United States.
2. PRICE, PAYMENTS, AND REBATE PROGRAM
a) The prices for the Products covered by this Agreement shall be as set
forth in Exhibit "A" attached hereto. Distributor subscribes to purchase a
minimum of at lease Eight Thousand (8,000) zone cabling termination
cabinets during the next twelve months after execution of this agreement.
At this level of commitment, the Distributor will be entitled to a twenty
(20%) discount from the list price of the product.
b) Products will be paid for within thirty (30) days of shipment to
Distributor.
c) Distributor shall submit current financial statements on the company
prepared in accordance with Generally Accepted Accounting Principles for
approval by the Seller prior to first order submitted under this agreement.
Distributor, agrees to promptly inform Seller of any changes to financial
condition while this agreement is in force.
3. DELIVERY
Each purchase order issued by Distributor will specify a delivery date. If a
delivery date specified in the purchase order cannot be met, Seller will advise
Distributor as soon as possible after receipt of the order and a new delivery
date will be agreed upon.
4. NEW PRODUCTS
Distributor and Seller agree that it is their intent to work toward a long-term
relationship for development and marketing of new Products. Seller agrees that
as long as Distributor performs well under this Agreement, Seller will continue
to bring new Products to Distributor for distribution consideration. Seller
warrants and represents to Distributor that any new products developed for
distribution will be made available for review and stocking under same terms and
conditions.
<PAGE> 8
5. RESALE
Distributor has the right to resell the Products anywhere in the United States
at whatever price is determined to be appropriate by Distributor. However,
should Seller wish to market its products outside the United States, Distributor
will be granted an opportunity to distribute our products.
6. TRAINING AND VALUE ADDED PROGRAM
a) Seller will provide training and support to Distributor for its
Products as long as this Agreement is in force. Upon request, Seller will
assist Distributor in the sale of Seller's Products to end users.
b) Seller has established a Value Added Program (YAP) whereby it will
train and certify selected contractor/technicians on the installation and
marketing of our products. This program includes a rebate program for
including our products in the specifications of future jobs and a rebate
for purchase of our products.
7. PRICE AND PRODUCT PROTECTION
a) Seller reserves the right to change prices at any time and agrees to
give Distributor thirty (30) days written notice of any such change. In the
event that Seller lowers its prices or alters the discounts available to
distributors, Distributor shall have the right to request price protection
for Products in Distributor's inventory. Upon such request, Seller will
grant a credit to Distributor in a amount equal to the difference between
the price paid and the new price (including additional discounts) for each
such Product in Distributor's inventory. All unshipped product will be
billed at the lower cost.
b) Seller agrees to provide Distributor with price change information no
less than thirty (30) days in advance of the affective date, which should
be sent directly to Distributor Inventory Management, attention Standard
Cost Group. Seller will submit required pricing information in an ASCII
Text, Tab delimited format. Distributor will provide the required pricing
file layout to Seller's designated point of contact who should be
responsible to address questions on pricing and/or file layout.
8. INVENTORY ADJUSTMENT PROCEDURE
In order to maintain a current stock of products, Distributor shall have the
right to take stock once every quarter by returning Products in its inventory
to Seller for replacement with other Seller Products of Distributor choosing;
provided however, that the aggregate price of the replacement Products is equal
to the price of the original Products returned, and that the returned Products
are in new and unused condition. All shipping costs relating to the rotation of
Products will be borne by Distributor. During the first six (6) months of this
distributor agreement is in effect, there will be no restocking charge for our
products; thereafter there will be a fifteen (15%) restocking fee assessed.
<PAGE> 9
9. WARRANTY
a) Seller's Products are warranted under normal use to be free from any
and all defects in design, materials and workmanship; to conform strictly
to the specifications and approved samples and to be fit and sufficient for
the purpose intended by the Seller for a period of one year from the date
of sale to the end user or such longer period as may be specified in
Seller's warranty from time to time.
b) Seller agrees to repair or replace, without charge, any part or
Product proven to be defective within the warranty period. Seller will pay
all shipping and delivery charges for warranty returns from Distributor.
This warranty shall be null and void in the event of misuse, accident,
alteration or unauthorized repair made to the Products. This warranty is
standard for all Seller's Products and any exceptions shall be stated in
writing to Distributor.
c) Seller's Products and shipping cartons will have the product's serial
number written and bar coded. Distributor will be able to ship replacement
units from stock and return end user's defective Products for credit.
Warranty credit returns through Distributor will not be included in stock
rotation allotments. Seller will provide Distributor with a predetermined
supply of technical manuals and support materials for all applicable
Products. Seller will update Distributor's warranty department on any
noncontractual changes to their warranty policies and procedures. Seller
shall have a single point of contract for warranty issues.
d) Seller may require factory authorization before allowing the return of
any material. This includes incorrect merchandise, overshipments, or
defective equipment. Material sent without authorization may be returned to
sender.
e) Newly received merchandise, which is defective, will be corrected
through warranty by Seller.
10. OUT-OF-WARRANTY REPAIR
Seller agrees to repair units which are out of the warranty period for actual
cost of repairs not to exceed 50% of current suggested list price. The end user
will pay all shipping and delivery charges both ways for repairs out of
warranty. Seller agrees to maintain this repair service for Distributor's
customers for a period of at least two (2) years after termination of this
Agreement.
11. TRADEMARKS AND COPYRIGHTS
Seller hereby assigns to Distributor the right to use its trademarks and
copyrights for the sale of each product covered during the life of this
Agreement.
<PAGE> 10
12. MANUFACTURING
Distributor agrees that it has no manufacturing rights to any Products under
this Agreement and that any technical or business information provided to
Distributor will be used solely for the purpose of selling and supporting those
Products.
13. INDEMNITIES
Anything herein to the contrary notwithstanding, Seller shall protect, defend,
hold harmless, and indemnify Distributor from and against any and all claims,
actions, liabilities, losses, costs, damages, and expenses (a) arising out of
any actual or alleged infringement of any U.S. or foreign patent, copyright or
trademark by any product sold to Distributor hereunder, or any unfair
competition involving such Products, or (b) arising out of any actual or alleged
death of or injury to any person, damage to any property, or any other damage,
loss, cost or expense, by whomsoever suffered, resulting or claimed to result in
whole or in part from the use of any such Products, any actual or alleged defect
in such Products, whether latent or patent, including actual or alleged improper
construction or design of such Products or the failure of such Products to
comply with specifications or with any express or implied warranties, or (c)
arising out of any actual or alleged violation by any such Products, or their
manufacture, possession, use or sale, of any law, statute or ordinance or any
governmental administrative order, rule or regulation.
14. INSURANCE
Seller shall obtain and maintain, at its expense, a policy or policies of
Product Liability Insurance, with Broad Form Vendor's Endorsement naming
Distributor, in such amounts and in such companies and containing such other
provisions which shall be satisfactory to Distributor, covering Products sold to
Distributor hereunder. All such policies shall provide that the coverage
thereunder shall not be terminated without at least thirty (30) days prior
written notice to Distributor. Certificates of Insurance shall be provided to
the Distributor upon request. Nothing contained herein would make Distributor
responsibility for misuse or improper installation by any third party of
products distributed under this agreement.
15. TERMINATION
This agreement is for a term of one year and is automatically renewed each year
thereafter unless either party gives written notice of its intent to cancel the
arrangement. The cancellation notice must be given to the other party at least
thirty (30) days before the anniversary date of this agreement.
17. FORCE MAJEURE
Neither party shall be liable for any delays in performance caused by acts of
God, civil or military authority, fires or other circumstances beyond their
reasonable control.
<PAGE> 11
18. ENTIRE AGREEMENT
This is an entire agreement incorporating any and all verbal agreements and any
future modification, adjustments, additions, and/or changes shall be made in
writing, executed by both parties.
19. ARBITRATION
Parties agree that should any dispute arise in the administration of this
agreement, that the dispute shall be resolved through arbitration under the
rules of the American Arbitration Association, with its location in Orange
County, Florida.
20. NOTICES
Notices required under this agreement shall be dispatched, postage prepaid as
follows:
Seller: American Access Technologies, Inc.
238 N. Westmonte Drive, Suite 210
Altamonte Springs, Florida, 32714
Distributor: CED - American Electric, Inc.
4818 S. W. Topeka Blvd.
Topeka, Kansas, 66609
IN WITNESS WHEREOF, the parties have executed this Agreement on the dates
written below.
By: /s/ Patrick J. Mersmann By: /s/
--------------------------------- -------------------------------
Title: Manager Title: CFO
--------------------------------- -------------------------------
Company: CED - American Electric, Inc. Company: American Access
Technologies, Inc.
<PAGE> 12
AMERICAN ACCESS TECHNOLOGIES, INC.
Schedule of Product Pricing
DISTRIBUTOR PRICING
Effective 7-30-97
Zone Cable Termination Cabinet & Accessories
<TABLE>
<CAPTION>
PRODUCT CODE LIST PRICE DISCOUNT PRICE
- -------------------------------------------------------------
<S> <C> <C> <C>
ZCTC 1024-B-AL-00 $682 20%/5% $518.49 Note 1.
ZCTC 1024-B-AL-33 $699 20%/5% $531.16 Note 1.
ZCTC 1024-B-GS-00 $661 20%/5% $502.44 Note 2.
ZCTC 1024-B-GS-33 $678 20%/5% $515.11 Note 2.
FP-B33-25 $ 47 20%/5% $ 35.47 Note 3.
FP-C33-25 $ 22 20%/5% $ 16.89 Note 4.
DG-1 $ 22 20%/5% $ 16.89 Note 5.
</TABLE>
GENERAL NOTE: All units have door gasket installed for NEMA 12 rating, with
transportation prepaid to all continental states on orders of six (6) units or
more.
Note 1. Standard ZCTC Model Numbers:
00 = Conduit Applications
33 = Cable Pentration Applications
Note 2. GS Code in Product Number indicates Galvaneal Steel-Minimum order
quantity of 100 required.
Note 3. Foam Kit "B" (Plenum Ceiling) two (2) kits per enclosure
Note 4. Foam Kit "C" (Non-Plenum Ceiling) two (2) kits per enclosure
Note 5. Door Gasket Replacement Kit to replace damaged units in field
Accepted and Agreed this 30th Day of Jul 1997.
Distributor American Access Technologies, Inc., Seller
/s/ Ronald L. Hollenbeck /s/
- -------------------------- ----------------------------------------
Signature Signature
Ronald L. Hollenbeck
- -------------------------- ----------------------------------------
Printed Name Printed Name
<PAGE> 13
STOCKING DISTRIBUTOR AGREEMENT
BETWEEN
AMERICAN ACCESS TECHNOLOGIES, INC.
AND
STATE ELECTRIC SUPPLY COMPANY
THIS AGREEMENT ("Agreement") is made and entered into this 3 day of Feb,
1997, between American Access Technologies, Inc. ("Seller") and State Electric
Supply, Co. ("Distributor").
1. PURPOSE
This Agreement sets forth terms whereby Distributor may purchase Products
from Seller for resale to its customers within the United States.
2. PRICE, PAYMENT, AND REBATE PROGRAM
a) The prices for the Products covered by this Agreement shall be as
set forth in Exhibit "A" attached hereto. Distributor subscribes to
purchase a minimum of at lease Eight Thousand (8,000) zone cabling
termination cabinets during the next twelve months after execution of
this agreement. At this level of commitment, the Distributor will be
entitled to a twenty (20%) discount from the list price of the
product.
b) Products will be paid for within thirty (30) days of shipment to
Distributor.
c) Distributor shall submit current financial statements on the
company prepared in accordance with Generally Accepted Accounting
Principles for approval by the Seller prior to first order submitted
under this agreement. Distributor, agrees to promptly inform Seller of
any changes to financial condition while this agreement is in force.
3. DELIVERY
Each purchase order issued by Distributor will specify a delivery date. If a
delivery date specified in the purchase order cannot be met, Seller will advise
Distributor as soon as possible after receipt of the order and a new delivery
date will be agreed upon.
4. NEW PRODUCTS
Distributor and Seller agree that it is their intent to work toward a long-term
relationship for development and marketing of new Products. Seller agrees that
as long as Distributor performs well under this Agreement, Seller will continue
to bring new Products to Distributor for distribution consideration. Seller
warrants and represents to Distributor that any new products developed for
distribution will be made for review and stocking under same terms and
conditions.
<PAGE> 14
5. RESALE
Distributor has the right to resell the Products anywhere in the United States
at whatever price is determined to be appropriate by Distributor. However,
should Seller wish to market its products outside the United States,
Distributor will be granted an opportunity to distribute our products.
6. TRAINING AND VALUE ADDED PROGRAM
a) Seller will provide training and support to Distributor for its
Products as long as this Agreement is in force. Upon request, Seller will
assist Distributor in the sale of Seller's Products to end users.
b) Seller has established a Value Added Program (VAP) whereby it will
train and certify selected contractors/technicians on the installation and
marketing of our products. This program includes a rebate program for
including our products in the specifications of future jobs and a rebate
for purchase of our products.
7. PRICE AND PRODUCT PROTECTION
a) Seller reserves the right to change prices at any time and agrees to
give Distributor thirty (30) days written notice of any such change. In the
event that the Seller lowers its prices or alters the discounts available
to distributors, Distributor shall have the right to request price
protection for Products in Distributor's inventory. Upon such request,
Seller will grant a credit to Distributor in an amount equal to the
difference between the price paid and the new price (including additional
discounts) for each such Product in Distributor's inventory. All unshipped
product will be billed at the lower cost.
b) Seller agrees to provide Distributor with price change information no
less than thirty (30) days in advance of the affective date, which should
be sent directly to Distributor Inventory Management, attention Standard
Cost Group. Seller will submit required pricing information in an ASCII
Text, Tab delimited format. Distributor will provide the required pricing
file layout to Seller's designated point of contact who should be
responsible to address questions on pricing and/or file layout.
8. INVENTORY ADJUSTMENT PROCEDURE
In order to maintain a current stock of products, Distributor shall have the
right to take stock once every quarter by returning Products in its inventory
to Seller for replacement with other Seller Products of Distributor choosing;
provided however, that the aggregate price of the replacement Products is equal
to the price of the original Products returned, and that the returned Products
are in new and unused condition. All shipping costs relating to the rotation of
Products will be borne by Distributor.
<PAGE> 15
9. WARRANTY
a) Seller's Products are warranted under normal use to be free
from any and all defects in design, materials and workmanship; to conform
strictly to the specifications and approved samples and to be fit and
sufficient for the purpose intended by the Seller for a period of one year
from the date of sale to the end user or such longer period as may be
specified in Seller's warranty from time to time.
b) Seller agrees to repair or replace, without charge, any part
or Product proven to be defective within the warranty period. Seller will
pay all shipping and delivery charges for warranty returns from
Distributor. This warranty shall be null and void in the event of misuse,
accident, alteration or unauthorized repair made to the Products. This
warranty is standard for all Seller's Products and any exceptions shall be
stated in writing to Distributor.
c) Seller's Products and shipping cartons will have the product's
serial number written and bar coded. Distributor will be able to ship
replacement units from stock and return end users's defective Products for
credit. Warranty credit returns through Distributor will not be included
in stock rotation allotments. Seller will provide Distributor with a
predetermined supply of technical manuals and support materials for all
applicable Products. Seller will update Distributor's warranty department
on any noncontractual changes to their warranty policies and procedures.
Seller shall have a single point of contract from warranty issues.
d) Seller may require factory authorization before allowing the
return of any material. This incudes incorrect merchandise, overshipments,
or defective equipment. Material sent without authorization may be
returned to sender.
e) Newly received merchandise, which is defective, will be
corrected through warranty by Seller.
10. OUT-OF-WARRANTY REPAIR
Seller agrees to repair units which are out of the warranty period for actual
cost of repairs not to exceed 50% of current suggested list price. The end
user will pay all shipping and delivery charges both ways for repairs out of
warranty. Seller agrees to maintain this repair service for Distributor's
customers for a period of at least two (2) years after termination of this
Agreement.
11. TRADEMARKS AND COPYRIGHTS
Seller hereby assigns to Distributor the right to use its trademarks and
copyrights for the sale of each product covered during the life of this
Agreement.
<PAGE> 16
12. MANUFACTURING
Distributor agrees that it has no manufacturing rights to any Products under
this Agreement and that any technical or business information provided to
Distributor will be used solely for the purpose of selling and supporting those
Products.
13. INDEMNITIES
Anything herein to the contrary notwithstanding, Seller shall protect, defend,
hold harmless, and indemnify Distributor from and against any and all claims,
actions, liabilities, losses, costs, damages, and expenses (a) arising out of
any actual or alleged infringement of any U.S. or foreign patent, copyright or
trademark by any product sold to Distributor hereunder, or any unfair
competition involving such Products, or (b) arising out of any actual or
alleged death of or injury to any person, damage to any property, or any other
damage, loss, cost or expense, by whomsoever suffered, resulting or claimed to
result in whole or in part from the use of any such Products, any actual or
alleged defect in such Products, whether latent or patent, including actual or
alleged improper construction or design of such Products or the failure of such
Products to comply with specifications or with any express or implied
warranties, or (c) arising out of any actual or alleged violation by any such
Products, or their manufacture, possession, use or sale, of any law, statute or
ordinance or any governmental administrative order, rule or regulation.
11. INSURANCE
Seller shall obtain and maintain, at its expense, a policy or policies of
Product Liability Insurance, with Broad Form Vendor's Endorsement naming
Distributor, in such amounts and in such companies and containing such other
provisions which shall be satisfactory to Distributor, covering Products sold
to Distributor hereunder. All such policies shall provide that the coverage
thereunder shall not be terminated without at least thirty (30) days prior
written notice to Distributor. Certificates of Insurance shall be provided to
the Distributor upon request.
15. TERMINATION
This agreement is for a term of one year and is automatically renewed each year
thereafter unless either party gives written notice of its intent to cancel the
arrangement. The cancellation notice must be given to the other party at least
thirty (30) days before the anniversary date of this agreement.
17. FORCE MAJEURE
Neither party shall be liable for any delays in performance caused by acts of
God, civil or military authority, fires or other circumstances beyond their
reasonable control.
<PAGE> 17
18. ENTIRE AGREEMENT
This is an entire agreement incorporating any and all verbal agreements and any
future modification, adjustments, additions, and/or changes shall be made in
writing, executed by both parties.
19. ARBITRATION
Parties agree that should any dispute arise in the administration of this
agreement, that the dispute shall be resolved through arbitration under the
rules of the American Arbitration Association, with its location in Orange
County, Florida.
20. NOTICES
Notices required under this agreement shall be dispatched, postage prepaid as
follows:
Seller: American Access Technologies, Inc.
238 N. Westmonte Drive, Suite 210
Altamonte Springs, Florida, 32714
Distributor: State Electric Supply Company
405 12th Street
Dunbar, WV 25064
IN WITNESS WHEREOF, the parties have executed this Agreement on the dates
written below.
By:/s/ Norman H. Ryder By: /s/
----------------------------------- ---------------------------------
Title: Branch Mgr. Sesco Electronics Title: CFO
------------------------------- ------------------------------
Company: State Electric Supply Company. Company: American Access
Technologies, Inc.
<PAGE> 18
EXHIBIT "A"
AMERICAN ACCESS TECHNOLOGIES, INC.
Schedule of Product Pricing
Stocking Distributors
Effective 1-96
ZCTC 1024 Zone Cable Termination Cabinet
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
UNITED ORDERED
- --------------------- SALES
FROM TO LIST DISCOUNT PRICE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
List Price 550.00
- --------------------
Annual Commitment
- --------------------
Level Units
- --------------------
Level 1 1,000 10.00% 495.00
Level 2 2,000 12.50% 481.25
Level 3 4,000 15.00% 467.50
Level 4 6,000 17.50% 453.75
Level 5 8,000 20.00% 440.00
</TABLE>
<PAGE> 19
STOCKING DISTRIBUTOR AGREEMENT
BETWEEN
AMERICAN ACCESS TECHNOLOGIES, INC.
AND
CORE DATA COM, INC.
THIS AGREEMENT ("Agreement") is made and entered into this 5th day of
March, 1997, between American Access Technologies, Inc. ("Seller") and Core Data
Com, Inc. ("Distributor").
1. PURPOSE
This Agreement sets forth terms whereby Distributor may purchase Products from
Seller for resale to its customers within the United States.
2. PRICE, PAYMENT, AND REBATE PROGRAM
a) The prices for the Products covered by this Agreement shall be as
set forth in Exhibit "A" attached hereto. Distributor subscribes to
purchase a minimum of at lease Eight Thousand (8,000) zone cabling
termination cabinets during the twelve months after execution of this
agreement. At this level of commitment, the Distributor will be
entitled to a twenty (20%) discount from the list price of the
product.
b) Products will be paid for within thirty (30) days of shipment to
Distributor.
c) Distributor shall submit current financial statements on the
company prepared in accordance with Generally Accepted Accounting
Principles for approval by the Seller prior to first order submitted
under this agreement. Distributor, agrees to promptly inform Seller of
any changes to financial condition while this agreement is in force.
3. DELIVERY
Each purchase order issued by Distributor will specify a delivery date. If a
delivery date specified in the purchase order cannot be met, Seller will advise
Distributor as soon as possible after receipt of the order and new delivery date
will be agreed upon.
4. NEW PRODUCTS
Distributor and Seller agree that it is their intent to work toward a long-term
relationship for development and marketing of new Products. Seller agrees that
as long as Distributor performs well under this Agreement, Seller will continue
to bring new Products to Distributor for distribution consideration. Seller
warrants and represents to Distributor that any new products developed for
distribution will be made available for review and stocking under same terms
and conditions.
5. RESALE
<PAGE> 20
Distributor has the right to resell the Products anywhere in the United States
at whatever price is determined to be appropriate by Distributor. However,
should Seller wish to market its products outside the United States,
Distributor will be granted an opportunity to distribute our products.
6. TRAINING AND VALUE ADDED PROGRAM
a) Seller will provide training and support to Distributor for its
Products as long as this Agreement is in force. Upon request, Seller
will assist Distributor in the sale of Seller's Products to end users.
b) Seller has established a Value Added Program (VAP) whereby it will
train and certify selected contractors/technicians on the installation
and marketing of our products. This program includes a rebate program
for including our products in the specifications of future jobs and a
rebate for purchase of our products.
7. PRICE AND PRODUCT PROTECTION
a) Seller reserves the right to change prices at any time and agrees
to give Distributor thirty (30) days written notice of any such
change. In the event that Seller lowers its prices or alters the
discounts available to distributors, Distributor shall have the right
to request price protection for Products in Distributor's inventory.
Upon such request, Seller will grant a credit to Distributor in a
amount equal to the difference between the price paid and the new
price (including additional discounts) for cach such Product in
Distributor's inventory. All unshipped product will be billed at the
lower cost.
b) Seller agrees to provide Distributor with price change information
no less than thirty (30) days in advance of the affective date, which
should be sent directly to Distributor Inventory Management, attention
Standard Cost Group. Seller will submit required pricing information
in an ASCII Text, Tab delimited format. Distributor will provide the
required pricing file layout to Seller's designated point of contact
who should be responsible to address questions on pricing and/or file
layout.
8. INVENTORY ADJUSTMENT PROCEDURE
In order to maintain a current stock of products, Distributor shall have the
right to take stock once every quarter by returning Products in its inventory to
Seller for replacement with other Seller Products of Distributor choosing;
provided however, that the aggregate price of the replacement Products is equal
to the price of the original Products returned, and that the returned Products
are in new and unused condition. All shipping costs relating to the rotation of
Products will be borne by Distributor, and will be subject to a re-stocking
charge of twenty (20%) percent.
9. WARRANTY
a) Seller's Products are warranted under normal use to be free from
any and all defects in design, materials and workmanship; to conform
strictly to the specifications and
<PAGE> 21
approved samples and to be fit and sufficient for the purpose intended
by the Seller for a period of one year from the date of sale to the end
user or such longer period as may be specified in Seller's warranty from
time to time.
b) Seller agrees to repair or replace, without charge, any part
or Product proven to be defective within the warranty period. Seller will
pay all shipping and delivery charges for warranty returns from
Distributor. This warranty shall be null and void in the event of misuse,
accident, alteration or unauthorized repair made to the Products. This
warranty is standard for all Seller's Products and any exceptions shall be
stated in writing to Distributor.
c) Seller's Products and shipping cartons will have the product's
serial number written and bar coded. Distributor will be able to ship
replacement units from stock and return end users's defective Products for
credit. Warranty credit returns through Distributor will not be included
in stock rotation allotments. Seller will provide Distributor with a
predetermined supply of technical manuals and support materials for all
applicable Products. Seller will update Distributor's warranty department
on any noncontractual changes to their warranty policies and procedures.
Seller shall have a single point of contract from warranty issues.
d) Seller may require factory authorization before allowing the
return of any material. This incudes incorrect merchandise,
overshipments, or defective equipment. Material sent without
authorization may be returned to sender.
e) Newly received merchandise, which is defective, will be
corrected through warranty by Seller.
10. OUT-OF-WARRANTY REPAIR
Seller agrees to repair units which are out of the warranty period for actual
cost of repairs not to exceed 50% of current suggested list price. The end
user will pay all shipping and delivery charges both ways for repairs out of
warranty. Seller agrees to maintain this repair service for Distributor's
customers for a period of at least two (2) years after termination of this
Agreement.
11. TRADEMARKS AND COPYRIGHTS
Seller hereby assigns to Distributor the right to use its trademarks and
copyrights for the sale of each product covered during the life of this
Agreement.
12. MANUFACTURING
Distributor agrees that it has no manufacturing rights to any Products under
this Agreement and that any technical or business information provided to
Distributor will be used solely for the purpose of selling and supporting those
Products.
13. INDEMNITIES
<PAGE> 22
Anything herein to the contrary notwithstanding, Seller shall protect, defend,
hold harmless, and indemnify Distributor from and against any and all claims,
actions, liabilities, losses, costs, damages, and expenses (a) arising out of
any actual or alleged infringement of any U.S. or foreign patent, copyright or
trademark by any product sold to Distributor hereunder, or any unfair
competition involving such Products, or (b) arising out of any actual or
alleged death of or injury to any person, damage to any property, or any other
damage, loss, cost or expense, by whomsoever suffered, resulting or claimed to
result in whole or in part from the use of any such Products, any actual or
alleged defect in such Products, whether latent or patent, including actual or
alleged improper construction or design of such Products or the failure of
such Products to comply with specifications or with any express or implied
warranties, or (c) arising out of any actual or alleged violation by any such
Products, or their manufacture, possession, use or sale, of any law, statute or
ordinance or any governmental administrative order, rule or regulation.
14. INSURANCE
Seller shall obtain and maintain, at its expense, a policy or policies of
Product Liability Insurance, with Broad Form Vendor's Endorsement naming
Distributor, in such amounts and in such companies and containing such other
provisions which shall be satisfactory to Distributor, covering Products sold
to Distributor hereunder. All such policies shall provide that the coverage
thereunder shall not be terminated without at least thirty (30) days prior
written notice to Distributor. Certificates of Insurance shall be provided to
the Distributor upon request.
15. TERMINATION
This agreement is for a term of one year and is automatically renewed each year
thereafter unless either party gives written notice of its intent to cancel the
arrangement. The cancellation notice must be given to the other party at lease
thirty (30) days before the anniversary date of this agreement.
17. FORCE MAJEURE
Neither party shall be liable for any delays in performance caused by acts of
God, civil or military authority, fires or other circumstances beyond their
reasonable control.
18. ENTIRE AGREEMENT
This is an entire agreement incorporating any and all verbal agreements and any
future modification, adjustments, additions, and/or changes shall be made in
writing, executed by both parties.
19. ARBITRATION
<PAGE> 23
Parties agree that should any dispute arise in the administration of this
agreement, that the dispute shall be resolved through arbitration under the
rules of the American Arbitration Association, with its location in Orange
County, Florida.
20. NOTICES
Notices required under this agreement shall be dispatched, postage prepaid as
follows:
Seller: American Access Technologies, Inc.
238 N. Westmonte Drive, Suite 210
Altamonte Springs, Florida, 32714
Distributor: Core Data Com, Inc.
11400 Decimal Drive
Louisville, Kentucky, 40299
IN WITNESS WHEREOF, the parties have executed this Agreement on the dates
written below.
By: /s/ By: /s/
------------------------ ---------------------------
Title: V.P. Title: CFO
-------------------- ------------------------
Company: Core Data Com. Inc. Company: American Access Technologies,
Inc.
<PAGE> 24
AMERICAN ACCESS TECHNOLOGIES, INC.
Schedule of Product Pricing
DISTRIBUTOR PRICING
Effective 7-30-97
Zone Cable Termination Cabinet & Accessories
<TABLE>
<CAPTION>
PRODUCT CODE LIST PRICE DISCOUNT PRICE
- ----------------------------------------------------------
<S> <C> <C> <C>
ZCTC 1024-B-AL-00 $682 20%/5% $518.49 Note 1.
ZCTC 1024-B-AL-33 $699 20%/5% $531.16 Note 1.
ZCTC 1024-B-GS-00 $661 20%/5% $502.44 Note 2.
ZCTC 1024-B-GS-33 $678 20%/5% $515.11 Note 2.
FP-B33-25 $ 47 20%/5% $ 35.47 Note 3.
FP-C33-25 $ 22 20%/5% $ 16.89 Note 4.
DG-1 $ 22 20%/5% $ 16.89 Note 5.
</TABLE>
GENERAL NOTE: All units have door gasket installed for NEMA 12 rating, with
transportation prepaid to all continental states on orders of six (6) units or
more.
Note 1. Standard ZCTC Model Numbers:
00 = Conduit Applications
33 = Cable Pentration Applications
Note 2. GS Code in Product Number indicates Galvaneal Steel-Minimum order
quantity of 100 required.
Note 3. Foam Kit "B" (Plenum Ceiling) two (2) kits per enclosure
Note 4. Foam Kit "C" (Non-Plenum Ceiling) two (2) kits per enclosure
Note 5. Door Gasket Replacement Kit to replace damaged units in field
Accepted and Agreed this 30th Day of Jul 1997.
Distributor American Access Technologies, Inc., Seller
/s/ Richard Woodrum /s/
- -------------------------- ----------------------------------------
Signature Signature
Richard Woodrum
- -------------------------- ----------------------------------------
Printed Name Printed Name
<PAGE> 1
EXHIBIT 8.3
VALUE ADDED RESELLER AGREEMENT (VAR)
AMERICAN ACCESS TECHNOLOGIES, INC.
and
DATASTAR COMPUTER SYSTEMS, INC.
THIS AGREEMENT effective this 11th day of February, 1998, between American
Access Technologies, Inc. (AATK), and DataStar Computer Systems, Inc.,
(DataStar), outlines the relationship between the two parties.
DataStar desiring to further its ability to fulfill its mission of providing
innovative products and services, while enhancing its competitive position, and
AATK, desiring to increase its market share through a VAR relationship with
DataStar, agrees to the following arrangement:
AGREEMENT DATE: This agreement is effective February 11, 1998 and shall continue
until February 11, 2001, unless earlier terminated as set forth herein. Parties
agree to work jointly toward developing the market share for AATK products
throughout the Texas region.
PERFORMANCE AND CONFIDENTIALITY:
All information relating to DataStar and the conduct of its business shall
remain the property of DataStar and AATK shall maintain strict confidentiality
of such information at all times. Should this agreement be terminated for any
reason, parties will promptly return all information, records, and client
information to the other party.
In consideration of the extensive sales and marketing effort by DataStar to
provide for the development of market share for AATK products through the its
Region, and nationwide through DataStar's Nationwide Services Group (NSG), AATK
agrees to an exclusive reseller arrangement with DataStar in the State of Texas
(Region) for a period of three (3) years. This exclusive arrangement is subject
to the following conditions:
a) DataStar will provide AATK with project registration forms,
and forecast reports on a quarterly basis, outlining the
development of business relative to AATK products.
b) DataStar will demonstrate an active marketing effort,
including columns written for trade publication, joint
marketing material development, white paper development, etc.
1
<PAGE> 2
c) DataStar will actively market the AATK product line through
it's direct sales force.
d) DataStar will meet or exceed the cumulative quota units as
forth in this agreement as Exhibit "A".
e) The exclusive arrangement does not pertain to those
relationships AATK has entered into as of effective date of
this agreement. A list of current distributors is attached and
incorporated herein as Exhibit "B".
f) In the event that a Distributor or Reseller located outside of
the State of Texas (other than those listed in Exhibit "B"),
sells AATK product directly to an end user company located in
the State of Texas, DataStar shall receive directly from AATK,
a compensation of Five (5%) Percent of the total
manufacturer's list sales price of product supplied.
g) DataStar is responsible for its selling expenses related to
travel and entertainment, and direct marketing, unless
otherwise agreed to in writing prior to incurring an expense.
APPLICABLE PRODUCT DISCOUNT: In consideration of this agreement and the
commitment made by both parties, AATK shall provide DataStar with a product
discount as outlined in Exhibit "C" incorporated herein.
PURCHASING ARRANGEMENT: AATK will make available to DataStar all product lines
when purchases are made through an appointed servicing VAR distributor with
additional discounts as outlined in Exhibit "C".
CONDUCT OF BUSINESS: DataStar and AATK will represent each other in a moral and
ethical manner at all times, and perform in a positive demeanor with clients and
employees at all times.
TERMINATION: This agreement is for a term of three (3) years and is
automatically renewed each year thereafter unless either party gives written
notice of its intent to cancel the agreement. The cancellation notice must be
given to the other party at least thirty (30) days prior to the anniversary date
of this agreement.
NEW PRODUCTS: Parties agree that it is their intent to work toward a long-term
relationship for development and marketing of new Products. AATK agrees that as
long as DataStar performs well under this Agreement, AATK will continue to bring
new Products to DataStar for market development in the Texas region.
PRICE AND PRODUCT PROTECTION: AATK reserves the right to change List
Prices at any time and agrees to give DataStar thirty (30) days written notice
of any such chance. The current products and List Prices offered for sale are
attached as Exhibit "D".
2
<PAGE> 3
In the event AATK lowers its prices or alters the discounts available to all
VAR's, DataStar shall have the right to request price protection for Products in
specification or inventory. Upon such request, AATK will grant a credit to
DataStar in an amount equal to the difference between the price paid and the new
price (including additional discounts) for each such product. All unshipped
product will be billed at the lower cost.
FORCE MAJEURE: Neither party shall be liable for any delays in performance
caused by acts of God, civil or military authority, fires or other circumstances
beyond their reasonable control.
ENTIRE AGREEMENT: This is an entire agreement incorporating any and all
agreements and any future modification, adjustments, additions, and/or changes
to this agreement shall be made in writing, and executed by both parties.
ARBITRATION: Parties agree that should any dispute arise in the administration
of this agreement, the dispute shall be resolved through arbitration under the
rules of the American Arbitration Association, with its location in Orange
County Florida.
NOTICES: Notices required under this agreement shall be dispatched, postage
prepaid as follows:
Seller: American Access Technologies, Inc.
238 N. Westmonte Drive, Suite 210
Altamonte Springs, FL, 32714
Distributor: DataStar Computer Systems, Inc.
2033 Chennault Drive, Suite 142
Carrollton, TX, 75006
IN WITNESS WHEREOF, the parties have executed this Agreement on the dates
written above.
By: /s/ Curt Marshall By /s/
--------------------------- ---------------------------
Title: President Title: Sec/Treasury, CFO
------------------------- ------------------------
Company: DataStar Computer Company: American Access Technologies, Inc.
Systems, Inc
3
<PAGE> 4
EXHIBIT "A"
VOLUME (QUOTA) AGREEMENT
The following is a minimum purchase quantity of AATK's Zone Cabling Termination
Cabinets for the three year period of this agreement:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PERIOD ZONE CABLING TERMINATION CABINETS
- ------------------------------------------------------------------------------
<S> <C>
February 11, ]995 - February 10, 1999 500 Units
- ------------------------------------------------------------------------------
February 11, 1999 - February 10, 2000 1,000 Units
- ------------------------------------------------------------------------------
February 11, 2000 - February 10, 2001 2,500 Units
- ------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 5
EXHIBIT "B"
DISTRIBUTOR LISTING
The following is a list of existing arrangements for distribution of AATK's
products that are excluded from this agreement:
1. Alltel Supply, Inc.
2. AMP Incorporated
3. Anicom, Inc
4. Anixter, Inc.
5. Arrow Electronics, Inc
6. Capco Communications, Inc.
7. CED - American Electric, Inc
8. Coleman's Mining & Electrical, Inc
9. Com-Stor, Inc
10. Core Data Com, Inc
11. Energy Electrical Cable, Inc.
l2. Graybar
13. Hughes Supply,lnc.
14. Ingram Micro
]5. Kent Datacom, Inc.
16. Lucent Technologies, Inc.
17. Platt DSV Resource Center
18. Sprint North Supply
19. State Electric Supply Co. (West VA)
20. Southern Distributors
21. Tech Data, Inc
22. Wescon, Inc.
5
<PAGE> 6
EXHIBIT "C"
PRICE DISCOUNT ARRANGEMENT
The list price of AATK's products will be discounted by a servicing distributor
w ith a twenty (20%), ten percent (10%) and five (5%) chain discount. The
following is an example of the zone cabinet to house hubs and routers which has
a list price of $ 1.043 with the final price to the VAR of $713.12
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DISCOUNT LEVEL PERCENT PRICE TO VAR
- --------------------------------------------------------------------------------
<S> <C> <C>
List Price 100% $1,043.00
- --------------------------------------------------------------------------------
Discount Level 1 20% $ 834.40
- --------------------------------------------------------------------------------
Discount Level 2 10% $ 750.96
- --------------------------------------------------------------------------------
Discount Level 3 5% $ 713.12
- --------------------------------------------------------------------------------
</TABLE>
NOTE:
1) Prices reflected above includes transportation with orders of six or
more zone cabinets. Expedited (airfreight) orders is available at an
extra cost.
2) A Unit Price of $750.00 each shall apply for the initial order of
ninety-four (94) units with the following hardware configuration
including transportation to DataStar.
Each Unit Shall Consist of:
- One Each Model ZCTC1024-HR-BAL-33
Hub & Router Enclosure w/easy access BAL33 penetrations.
- Two Each FP-B33-25 Kits
Accessory & Fining Kits
- One Each 1U-DM-HR Assembly
For Mounting Equipment on top of Hubs & Routers
3) The servicing distributor for purchase orders, shipping, coordination
and invoicing until further notice, shall be:
Southern Distributors
P.O. Box 520997
Longwood, Fla., 32752-0997
Fax 407-332-0349
6
<PAGE> 7
EXHIBIT "D"
Current Products & List Prices
of
American Access Technologies, Inc.
<TABLE>
<CAPTION>
ENCLOSURES: List
<S> <C> <C> <C>
1. ZCTC1024-LP-BAL-33 Standard enclosure with a new face $ 775.00
(must use two FP-B33-25 kits per unit)
(Consolidation-distribution point)
2. ZCTC1024-LP-Bal-00 Standard enclosure with a new face $ 758.00
(conduit entry and exit only)
(Consolidation-distribution point)
3. ZCTC1024-HR-BAL-33 Hubs & Routers Enclosure w/ easy access $1,084.00
BAL-33 penetrations. (Must use two FPB33-
25 kits)
4. ZCTC1024-HR-BAL-00 Hubs & Routers Enclosure w/ conduit
entry only. (No FP kits needed.) $1,043.00
5. ZCTC 0822-RF Consolidation enclosure for a 8"
raised floors. (Non-plenum) $ 346.00
Capacity up to 192 port 4/pr.
6. ZCTC 0622-RF Consolidation enclosure for a 6" 346.00
raised floor. (Non-plenum)
Capacity up to 9Lport 4/pr.
ACCESSORIES & FITTINGS:
1. FP-B33-25 Foam kit plenum rated
Kit includes 24 foam sheets $ 47.00
(3 1/4"X3"X 1/4")
2. FP-C33-25 Foam kit non-plenum rated $ 22.00
Kit includes 24 foam sheets
(3 1/4" X 3" X 1/4")
3. GK-LP-1 Grommet kit for cable entries $ 11.34
(replacement kit)
4. S0-2U Stand off bracket 2U (3.50") $ 20.20
</TABLE>
7
<PAGE> 8
<TABLE>
<S> <C> <C> <C>
5. S0-4U Stand off bracket 4U (7.00") $28.03
6. HRMP Hub & Router Mounting Plate $41.22
(This plate mounts on top of the Hubs
& Routers to hold and configure patch
panels and connecting devices.)
7. 1US This is a one "U" short bracket for $11.34
mounting (1 3/4") wire management,
24 port patch panels or fiber module
brackets. Short (1U X 2 1/4' Tall)
8. 1UL Bracket $11.95
mounting (1 3/4") wire management,
24 port patch panels or fiber module
brackets. Long (1U X 3 1/4" Tall)
9. 2US This is a 2 "U" short bracket for $15.66
mounting (3 1/2") equipment.
3 1/2" X 3 1/4" Tall
10. 2UL This is a two "U" Long bracket for $15.66
mounting (3 1/2") equipment.
3 1/2" X 3 1/4" Tall
11. BNS Bay Networks 1U bracket (to mount $24.32
hubs or router to the equipment mooning
plate.) Comes in pr. 2 per set
12. BNL Bay Networks 2U bracket (to mount $25.14
hubs or router to the equipment mounting
plate.) Comes in pr. 2 per set
13. 3CS 3COM 1U Mounting brackets (pr) $26.17
14. 3C2 3COM 2U Mounting brackets (pr) $28.44
15. DM-STD Equipment mounting plate (Standard $41.11
unit - old style.)
16. DM-LP Equipment mounting plate (New LP $44.11
style for Hubs & Routers
17. DM-HRC Equipment mounting plate (New HR $48.23
style for Hubs & Routers - Cisco
18. G-28 Fan Motor for the HR Unit. (Specify CFM) $68.84
Replacement part
</TABLE>
8
<PAGE> 9
<TABLE>
<S> <C> <C>
19. G-28-T 12 Volt transformer for the fan motor. $12.98
Replacement part
20. G-28-G Fan motor gasket. $ 3.92
Replacement part
KNOBS: REPLACEMENT PARTS
1. RBK Round black knob. (old style - door) $11.54
2. TBK Thumb knob / Black (door) $13.81
3. LTK Locking thumb knob (door) $30.71
4. TLK Tool type locking knob (door) $35.04
ASSEMBLIES: For mounting equipment on top of the Hubs & Routers
1. 1U-DM-HR Equipment mounting plate to install patch $79.96
panels and such type of devices. Using a 1 U
inch Hub. (Parts assembled; 1-DM-HR, 2-2US,
2-2UL, 2-1US)
2. 2U-DM-HR Equipment mounting plate to install patch $83.45
panels and such type of devices. Using a 2U
thick Hub. (Parts assembled; 1-DM-HR, 4-2US,
2-2UL, 2-1 US)
</TABLE>
9
<PAGE> 1
EXHIBIT 8.4
November 27, 1996
Mr. Bob Story
American Access Technologies, Inc.
Dear Mr. Story:
This letter sets forth the terms and conditions under which Capital
International Securities Group, Inc. (CSI) will render certain investment
banking services to American Access Technologies, Inc. (the "Company") related
to proposed $100,000 bank loan and private placement of the Company's
securities.
1. CSI proposes to use its best efforts to offer securities on behalf of
the Company in a private offering exempt from the registration requirements of
the Securities Act of 1933, as amended (the "Private Placement"), the sale of
which will result in gross proceeds of up to $450,000. CSI shall have the right
to approve the ultimate offering, including but not limited to the Private
Placement Memorandum and all ancillary documentation which shall be furnished
by the Company. It is anticipated that the offering will be Convertible
Preferred Stock.
2. The Company represents to CSI that the Private Placement Memorandum
will be accurate and complete in all material respects and will not include any
untrue statement of material fact or omit to state any material fact required
to be stated therein or necessary to make the statements made therein, in light
of the circumstances under which they are made, not misleading.
All information furnished to CSI by the Company will be accurate and complete
in all material respects at the time furnished and CSI does not assume
responsibility for the information furnished. The Company confirms that CSI, in
rendering its services hereunder, may use and rely on such information without
independent verification thereof.
3. In consideration for CSI services in connection with the Private
Placement, the Company agrees to pay CSI a fee equal to 12% of the gross
proceeds of Private Placement and non-accountable expenses equal to 3% of the
gross proceeds of the offering at the closing. CSI shall receive a commission
of 3% of the bank loan upon closing of the loan.
4. The term of the CSI engagement hereunder shall extend for a period
ending November 30, 1999 unless extended by mutual agreement of the parties
hereto. The Company will pay CSI the cash fee set forth in paragraph 3 hereof
with respect to any securities sold in the offering up to the maximum amount of
the offering based on sales to (i) those potential investors which will have
been contacted by CSI during its engagement hereunder; (ii) any subsidiary or
affiliate thereof. CSI shall also have the right of first refusal for a period
of three
<PAGE> 2
years after the date hereof, contingent on CSI successful completion of the
Private Placement, to act as the Company's managing underwriter or offering
agent for any public offerings or private placement of its securities
contemplated by the Company or any of its subsidiaries, and to act as the
Company's agent for any merger involving the Company or any of its
subsidiaries, the acquisition by the Company or any of its subsidiaries of any
entity or the assets thereof and the acquisition of the Company or any of its
subsidiaries by another entity. The right of first refusal herein shall not
apply to borrowing by the Company from bankers other lending institutions
unless otherwise arranged by CSI. This right of first refusal shall be on terms
equal to those proposed by third parties, and CSI shall be required to promptly
advise the Company as to whether its desires to exercise the right of first
refusal herein, and in all events it shall advise the Company within a period
of 30 days after a proposal is submitted by the Company to CSI.
5. In addition to any fees that may be payable to CSI, and regardless of
whether a financing is consummated, the Company hereby agrees to reimburse CSI
for all of its accountable out-of-pocket fees and expenses arising out of CSI
efforts on the Company's behalf, provided that any such expenses exceeding
$5,000 in total shall require your express written consent. Reasonable
out-of-pocket fees and expenses include, but are not limited to, costs such as
the cost of legal fees, telephone, telecopier, courier services,
accommodations and travel. All such expenses shall be credited against the
non-accountable expense allowance payable upon completion of the offering. Upon
the earlier of the termination or expiration of this Agreement, or the
consummation of the Private Placement, all outstanding costs and expenses shall
be due and payable.
6. The Company will indemnify CSI and its officers, directors and
employees against all claims, damages, liability and litigation expenses
(including the expenses of CSI, in connection with, its investigation and
defense of any such claim involving litigation) as the same are incurred,
related to or arising out of its activities hereunder, including any actual or
alleged misrepresentation or omission of a material fact from the Company's
Private Placement Memorandum.
7. The services or advice to be provided by CSI hereunder shall not be
disclosed publicly or made available to third parties not affiliated with the
Company without CSI prior written approval, which approval shall not be
unreasonably withheld, except as required by law, including but not limited to
the Company's obligations under the applicable securities laws. All information
concerning the Company that is not publicly available will be treated by CSI as
confidential and will be revealed to third parties only on a need-to-know
basis, unless legally compelled.
8. This agreement shall be governed by the laws of the state of Florida
and may not be amended or modified except in writing signed by both parties.
9. This agreement and all rights and obligations thereunder shall be
binding upon and inure to the benefit of each party's successors and may not be
assigned without the other party's
2
<PAGE> 3
consent.
10. The Company agrees to allow CSI to have a representative attend all
Board of Directors meetings at the Company during the term of this Agreement.
CSI will receive ten (10) days' written notice of such meetings.
If the foregoing meets with your acceptance and is in accordance with your
understanding, please so indicate by signing and returning to us the enclosed
duplicate of this letter.
Yours very truly,
CAPITAL INTERNATIONAL
SECURITIES GROUP, INC.
By: /s/
---------------------------------
Agreed to and Accepted this 24th day of
December, 1996.
AMERICAN ACCESS TECHNOLOGIES, INC.
By: /s/ Bob Story
-------------------------------
Bob Story
President
3
<PAGE> 1
EXHIBIT 8.5
MANAGEMENT AGREEMENT
THIS AGREEMENT made this 21st day of October, 1996, by and between
AMERICAN ACCESS TECHNOLOGIES, INC., a Florida corporation (the "Corporation"),
and Vic Murray & Sons, ("Manager").
WITNESSETH:
WHEREAS, the Corporation desires to retain Manager; and,
WHEREAS, Manager desires to provide management services to the
Corporation.
NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, the parties agree as follows:
l. MANAGEMENT. Manager will provide management assistance to the
corporation by performance of the following:
- Organize policies and procedures for organization of the
business operations.
- Assist other management consultants in the securing short-term
and long-term financial needs for the corporation
- Supervise the development of products and services
- Consult with and employ legal, accounting, and industry
consultants to assist in the organization and operation of the
corporation
- Other duties as directed by the Board of Directors
1. PAYMENT. Manager will be authorized Ten Thousand ($10,000) per month as
payment for services. However, beginning as authorized by the board of
directors, manager will be paid One Thousand Three Hundred Thirty Six
($1,386) per week and the balance due will accrue to manager. Accrued
compensation under this agreement will be settled as directed by the
board of directors; but, shall be on or before December 31, 1998.
2. TERM: The term of this agreement shall be on a month by month basis and
terminated with either party giving notice of at least 30 days prior to
anticipated termination. In no event shall this arrangement exceed
eighteen (18) months in duration.
4. ENTIRE AGREEMENT: This is an entire agreement employing and
incorporating all verbal agreements and understanding and any
additional changes, amendments or modifications must be made in
writing.
<PAGE> 2
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first written above.
Witness "Corporation" AMERICAN ACCESS TECHNOLOGIES,
Inc.
/s/
- ---------------------------------
/s/ By: /s/
- --------------------------------- ---------------------------------
Its: Director
/s/ "Manager"
- ---------------------------------
/s/ /s/ Victor E. Murray
- --------------------------------- -------------------------------------
Vic Murray
- --------------------------------- -------------------------------------
<PAGE> 3
MANAGEMENT AGREEMENT
THIS AGREEMENT made this 1st day of March, 1997, by and between
AMERICAN ACCESS TECHNOLOGIES, INC., a Florida corporation (the "Corporation"),
and Steve R. Jones, ("Manager").
WITNESSETH:
WHEREAS, the Corporation desires to retain Manager; and,
WHEREAS, Manager desires to provide management services to the
Corporation.
NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, the parties agree as follows:
1. MANAGEMENT. Manager will provide management assistance to the
corporation by performance of the following:
- Organize policies and procedures for organization of the
business operations.
- Assist other management consultants in the securing short-term
and long-term financial needs for the corporation
- Supervise the development of products and services
- Consult with and employ legal, accounting, and industry
consultants to assist in the organization and operation of the
corporation
2. PAYMENT. Manager will be authorized Five Thousand ($5,000) per month as
payment for services. However, beginning as authorized by the board of
directors, parties agree manager will be paid Six Hundred Ninety Three
($693) per week and the balance due will accrue to manager. Accrued
compensation under this agreement will be settled as directed by the
board of directors; but, shall be on or before December 31, 1998.
3. TERM: The term of this agreement shall be on a month by month basis and
terminated with either party giving notice of at least 30 days prior to
anticipated termination. In no event shall this arrangement exceed
eighteen (18) months in duration.
4. TAX LIABILITY: Parties acknowledge that any taxes, state or federal, on
compensation paid under this agreement shall be the duty and
responsibility of the manager.
5. ENTIRE AGREEMENT: This is an entire agreement employing and
incorporating all verbal agreements and understanding and any
additional changes, amendments or modifications must be made in
writing.
<PAGE> 4
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first written above.
Witness "Corporation" AMERICAN ACCESS TECHNOLOGIES,
Inc.
/s/
- ---------------------------------
/s/ By: /s/
- --------------------------------- ---------------------------------
Its: Director
/s/ "Manager"
- ---------------------------------
/s/ /s/ Steve R. Jones
- --------------------------------- -------------------------------------
(Steve R. Jones)
<PAGE> 5
MANAGEMENT AGREEMENT
THIS AGREEMENT made this 21st day of October, 1996, by and BETWEEN
ACCESS TECHNOLOGIES, INC., a Florida corporation (the "Corporation"), and Steven
K. Robinson, ("Manager").
WITNESSETH:
WHEREAS the Corporation desires to retain Manager, and,
WHEREAS, Manager desires to provide management services to the
Corporation.
NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, the parties agree as follows:
1. MANAGEMENT, Manager will provide management assistance to the
corporation by performance of the following:
- Organize policies and procedures for organization of the
business operations.
- Assist other management consultants in the securing short-term
and long-term financial needs for the corporation.
- Supervise the development of products and services.
- Consult with and employ legal, accounting, and industry
consultants to assist in the organization and operation of the
corporation.
2. PAYMENT. Manager will be authorized Five Thousand ($5,000) per month as
payment for services. However, beginning as authorized by the board of
directors, parties agree manager will be paid Six Hundred Ninety Three
($693) per week and the balance due will accrue to manager. Accrued
compensation under this agreement will be settled as directed by the
board of directors; but, shall be on or before December 31, 1998.
3. TERM: The term of this agreement shall be on a month by month basis and
terminated with either party giving notice of at least 30 days prior to
anticipated termination. In no event shall this arrangement exceed
eighteen (18) months in duration.
4 TAX LIABILITY: Parties acknowledge that any taxes, state or federal, on
compensation paid under this agreement shall be the duty and
responsibility of the manager.
5. ENTIRE AGREEMENT: This is an entire agreement employing and
incorporating all verbal agreements and understanding and any
additional changes, amendments or modifications must be made in
writing.
<PAGE> 6
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first written above.
Witness "Corporation" AMERICAN ACCESS TECHNOLOGIES,
Inc.
/s/
- ---------------------------------
/s/ By: /s/ Victor E. Murray
- --------------------------------- ---------------------------------
Its: Director
/s/ "Manager"
- ---------------------------------
/s/ /s/ Steven K. Robinson
- --------------------------------- -------------------------------------
(Steven K. Robinson)
<PAGE> 7
MANAGEMENT AGREEMENT
THIS AGREEMENT made this 21st day of October, 1996, by and between
AMERICAN ACCESS TECHNOLOGIES, INC., a Florida corporation (the "Corporation"),
and NACEX, Inc. ("Manager").
WITNESSETH:
WHEREAS, the Corporation desires to retain Manager; and,
WHEREAS, Manager desires to provide management services to the
Corporation.
NOW THEREFORE, in consideration of the mutual covenants and promises
contained herein, the parties agree as follows:
1. MANAGEMENT. Manager will provide management assistance to the
corporation by performance of the following:
- Organize policies and procedures for organization of the
business operations.
- Assist other management consultants in the securing short-term
and long-term financial needs for the corporation
- Supervise the development of products and services
- Consult with and employ legal, accounting, and industry
consultants to assist in the organization and operation of the
corporation
- Make financial projections
- Select Investment Bankers to assist the financing for the
corporation
- Selecting and employing outside accountants
- Other duties as directed by the Board of Directors
1. PAYMENT. Manager will be authorized Five Thousand ($5,000) per month as
payment for services. However, beginning as authorized by the board of
directors, manager will be paid Six Hundred Ninety Two ($692) per week
and the balance due will accrue to manager. Accrued compensation under
this agreement will be settled as directed by the board of directors;
but, shall be on or before December 31, 1998.
2. TERM: The term of this agreement shall be on a month by month basis and
terminated with either party giving notice of at least 30 days prior to
anticipated termination. In no event shall this arrangement exceed
eighteen (18) months in duration.
4. ENTIRE AGREEMENT: This is an entire agreement employing and
incorporating all verbal agreements and understanding and any
additional changes, amendments or modifications must be made in
writing.
<PAGE> 8
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first written above.
Witness "Corporation" AMERICAN ACCESS TECHNOLOGIES,
INC.
/s/
- ---------------------------------
/s/ By: /s/ Victor E. Murray
- --------------------------------- ---------------------------------
Its: Director
/s/ "Manager"
- ---------------------------------
/s/ /s/
- --------------------------------- -------------------------------------
(Nacex, Inc.)
- --------------------------------- -------------------------------------
<PAGE> 1
EXHIBIT 8.6
CONSULTING AGREEMENT
THIS CONSULTING AGREEMENT ("Agreement") is made as of August 28, 1997
between AMERICAN ACCESS TECHNOLOGIES, INC., a Florida corporation (the
"Corporation"), and STEVE R. JONES, an individual (the "Consultant").
WHEREAS, the Corporation had developed specialized products for the
telecommunications industry; and
WHEREAS, Consultant has been in the service of the Company as President
and director; and
WHEREAS, the Corporation and the Consultant wish to change Consultant's
status with the Corporation to an independent consultant;
THEREFORE, in consideration of the premises and covenants herein set
forth, it is agreed as follows:
1. Engagement. Corporation hereby engages Consultant as an independent
consultant on the terms and conditions set forth herein and Consultant hereby
resigns as an officer, director and employee of the Corporation.
1.1 Consultant will consult with the Corporation at its request in
the areas of his expertise at mutually acceptable times and places at twenty
(20) hours per month.
1.2 Consultant shall not, without the prior written consent of the
Corporation, directly or indirectly, during the term of this Agreement, render
services of business, professional or commercial nature to any other person or
entity, whether for compensation or otherwise, or engage in any activity
competitive with or adverse to the Corporation's business or welfare, whether
alone, as a partner or member, or as an officer, director, employee or 5% or
greater shareholder of a corporation.
<PAGE> 2
2. Term of Engagement. Subject to the provisions set forth herein, the
term of Consultant's engagement hereunder shall continue for five (5) years.
3. Duties. Such consultation shall be scheduled so as not to interfere
with Consultant's other employment and shall not be in excess of twenty (20)
hours per month without Consultant's consent.
4. Compensation. For all services he may render to the Corporation
during the term of this Agreement and in consideration of his agreement no to
compete as set forth in paragraph 1.2, Consultant shall receive the following
compensation:
4.1 Consultant shall receive a base fee at the rate of $30,000 per
year paid quarterly in arrears.
4.2 Additional compensation:
(i) Consultant shall be issued an option to purchase 40,000 of
the Corporation's Common Stock on the last day of each year of the consulting
term hereunder. Each option granted herein shall be exercisable for three (3)
years from the date of issue. The exercise price of each such option shall be
125% of the average of the closing bid and asked price of the Corporation's
Common Stock as reported on the date of issue, or if there is no such quotation
on the date of issue, the next prior date on which there was such a quotation.
(ii) In the event Consultant is the procuring cause of the
Corporation's acquisition of a new product or business by license, purchase,
merger, stock exchange, or otherwise, he shall be entitled to receive
additional compensation of five (5%)
2
<PAGE> 3
of the value of such transaction as determined by the Corporation and its
investment bankers, which sum shall be paid within ten (10) days of closing of
any such transaction.
5. Agreements concerning Stock. Consultant currently owns 400,000 shares
of the Corporation's Common Stock and 70,000 $8.00 Stock Purchase Warrants.
Consultant hereby agrees to return 200,000 shares of such stock to the
Corporation and all of the $8.00 Stock Purchase Warrants to the Corporation
upon execution hereof to be used for recruitment and incentives for officers,
directors and key employees. With respect to his remaining 200,000 shares,
Corporation agrees to include such shares for sale by Consultant in its
registration statement filed in connection with its outstanding stock purchase
warrants. Consultant agrees that he will not sell or transfer any such shares
in an amount greater than 10,000 shares in any month for the 24 months
following execution of this agreement. In order to facilitate the restrictions
on resale contained herein, Consultant will deposit such shares in a brokerage
account with Capital International Securities, Inc. with irrevocable
instructions to honor the foregoing sale and transfer restrictions.
6. Trade Secrets. Consultant agrees that he will not, during or two years
after the termination of his engagement with the Corporation, furnish or make
accessible to any person, firm, corporation or any other entity any trade
secrets, technical data, customer list, sales representatives, or know-how
including use of patents and patents pending acquired by him during the term of
his employment with the Corporation which relates to the past and current
business, practices, methods, processes, programs, equipment or other
confidential or secret aspects of the business of the Company, or its
subsidiaries or
3
<PAGE> 4
affiliates or any portion thereof, without the prior written consent of the
Corporation, unless such information shall have become public knowledge, other
than being divulged or made accessible by Consultant.
7. Non-disclosure. During the term of his engagement and for two (2)
years after its termination. Consultant will not, directly or indirectly,
disclose the names of the Corporation's customers, prospects or sales
representatives or those of its subsidiaries and affiliates or attempt to
influence such customers or representatives to cease doing business with the
Company or its subsidiaries or affiliates.
Consultant shall communicate and make known to the Corporation all
knowledge possessed by him which he may legally impart relating to any methods,
developments, designs, processes, programs, services, and ideas which concern
in any way the business or prospects of the Corporation and its subsidiaries
and affiliates from the time of entering his employment until the termination
thereof.
8. Conflict of Interest. Consultant agrees that during the term of his
engagement and any extensions thereof, he will comply with the policy of the
Corporation with respect to the Corporation entering into, directly or
indirectly, any transactions with any business organization or other entity in
which he or any member of his family has a direct or indirect ownership
interest.
9. Miscellaneous.
9.1 The failure of either party to enforce any provision of this
Agreement shall not be construed as a waiver of any such provision, nor prevent
such party thereafter from enforcing such provision or any other provision of
this Agreement. The rights granted
4
<PAGE> 5
both parties herein are cumulative and the election of one shall not constitute
a waiver of such party's right to assert all other legal remedies available
under the circumstances.
9.2 Any notice to be given to the Corporation under the terms of
this Agreement shall be addressed to the Corporation, at the address of its
principal place of business, and any notice to be given to Consultant shall be
addressed to him at his home address last shown on the records of the
Corporation, or such other address as either party may hereafter designate in
writing to the other. Any notice shall be deemed duly given when mailed by
registered or certified mail, postage prepaid, as provided herein.
9.3 The provisions of the Agreement are severable, and if any
provision of this Agreement shall be held to be invalid or otherwise
unenforceable, in whole or in part, the remainder of the provisions, or
enforceable parts thereof, shall not be affected thereby.
9.4 The rights and obligations of the Corporation under this
Agreement shall inure to the benefit of and be binding upon the successors and
assignees of the Corporation.
9.5 This Agreement supersedes all prior agreements and
understandings between the parties hereto, oral or written, and may not be
modified or terminated orally. No modification, termination or attempted waiver
shall be valid unless in writing, signed by the party against whom such
modification, termination or waiver is sought to be enforced.
5
<PAGE> 6
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.
AMERICAN ACCESS TECHNOLOGIES, INC.
By: /s/
----------------------------------
/s/ Steve R. Jones
-------------------------------------
STEVE R. JONES
6
<PAGE> 1
EXHIBIT 8.7
MANAGEMENT TERMINATION AGREEMENT
THIS MANAGEMENT TERMINATION AGREEMENT ("Agreement") is made as of
December 9, 1997 between AMERICAN ACCESS TECHNOLOGIES, INC. a Florida
corporation (the"Corporation"), and STEVEN K. ROBINSON, an individual
("Robinson").
WHEREAS, parties entered into a management agreement dated October 21,
1996; and
WHEREAS, Robinson was issued shares of common stock of the Corporation
in exchange for future management services to the Corporation; and
WHEREAS, parties mutually wish to terminate and conclude the management
agreement.
THEREFORE, in consideration of the premises and covenants herein set
forth, it is agreed as follows:
1. Termination. Robinson hereby resigns as an officer, director
and employee of the Corporation.
2. Agreement concerning Stock. Robinson currently owns 400,000
shares of the Corporation's Common Stock and 70,000 $8.00
Stock Purchase Warrants. Robinson hereby agrees to return
200,000 shares of such stock to the Corporation upon execution
hereof to be used for recruitment and incentives of officers,
directors and key employees. With respect to the remaining
200,000 shares, Corporation agrees to include such shares for
sale by Robinson in its registration statement filed in
connection with its outstanding stock purchase warrants.
Robinson agrees that he will not sell or transfer any
<PAGE> 2
such shares in an amount greater than 10,000 shares in any
month for the 24 months following execution of this agreement.
3. Trade Secrets. Robinson agrees that he will not, for two years
from the date of this agreement, furnish or make accessible to
any person, firm, corporation or any other entity any trade
secrets, technical data, customer list, sales representatives,
or know-how including use of patents and patents pending
acquired by him during the term of his employment with the
Corporation which relates to the past and current business,
practices, methods, processes, programs, equipment or other
confidential or secret aspects of the business of the Company,
or its subsidiaries or affiliates or any portion thereof,
without the prior written consent of the Corporation, unless
such information shall have become public knowledge, other
than being divulged or made accessible by Consultant.
4. Non-disclosure. During the term of his engagement and for two
(2) years after the date of this agreement, Robinson will not,
directly or indirectly, disclose the names of the
Corporation's customers, prospects or sales representatives or
those of its subsidiaries and affiliates or attempt to
influence such customers or representatives to cease doing
business with the Company or its subsidiaries or affiliates.
Robinson shall communicate and make known to the
Corporation all knowledge possessed by him which he may
legally impart relating to any methods, developments, designs,
processes, programs, services, and ideas which concern in any
way the business or prospects of the Corporation and its
<PAGE> 3
subsidiaries and affiliates from the time of entering his
employment until the termination thereof.
5. Miscellaneous.
5.1 The failure of either party to enforce any provision
of this Agreement shall not be construed as a waiver
of any such provision, nor prevent such party
thereafter from enforcing such provision or any other
provision of this Agreement. The rights granted both
parties herein are cumulative and the election of one
shall not constitute a waiver of such party's right
to assert all other legal remedies available under
the circumstances.
5.2 Any notice to be given to the Corporation under the
terms of this agreement shall be addressed to the
Corporation, at the address of its principal place of
business, and any notice to be given to Robinson
shall be addressed to him at his home address last
shown on the records of the Corporation, or such
other address as either party may hereafter designate
in writing to the other. Any notice shall be deemed
duly given when mailed by registered or certified
mail, postage prepaid, as provided herein.
5.3 The provisions of the Agreement are severable, and if
any provisions of this Agreement shall be held to be
invalid or otherwise unenforceable, in whole or in
part, the remainder of the provisions, or enforceable
parts thereof, shall not be affected thereby.
5.4 The rights and obligations of the Corporation under
this Agreement shall enure to the benefit of and be
binding upon the successors and assignees of the
Corporation.
<PAGE> 4
5.5 This Agreement supersedes all prior agreements and
understandings between the parties hereto, oral or
written, and may not be modified or terminated
orally. No modification, termination or attempted
waiver shall be valid unless in writing, signed by
the party against whom such modification, termination
or waiver is sought to be enforced.
6. Settlement. Parties acknowledge that accrued management fees will be
paid to Robinson on or before January 15, 1998.
7. Arbitration. Parties agree that should any dispute arise in the
administration of this agreement, that the dispute shall be resolved
through arbitration under the rules of the American Arbitration
Association, with its location in Orange County, Florida.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first written above.
Witness "Corporation" AMERICAN ACCESS TECHNOLOGIES,
Inc.
/s/
- ---------------------------------
/s/ By: /s/ Victor E. Murray
- --------------------------------- ---------------------------------
Its: President
/s/ Steven K. Robinson
- ---------------------------------
/s/ /s/ Steven K. Robinson
- --------------------------------- -------------------------------------
<PAGE> 1
EXHIBIT 8.8
PURCHASE AGREEMENT
THIS AGREEMENT, made this 21 day of October, 1996 by and between:
"SELLER"
Victor E. Murray
105 Fox Ridge Run
Longwood, Florida, 32750
"BUYER"
American Access Technologies, Inc.
604 Savage Ct.
Longwood, Florida, 32750
1. WHEREAS, the SELLER has been a manufacturers representative for various
Telecommunications manufacturers, suppliers and has sold to various
distributors; and,
2. WHEREAS, the SELLER is the sole stockholder of Vic Murray & Associates, Inc.
and desires to sell this stock to American Access Technologies, Inc.
3. NOW, therefore the parties hereby agree as follows:
1) Price: Seller will be paid by Buyer, One Thousand Dollars ($1,000)
for One Thousand shares of Vic Murray & Associates, Inc., Common Stock. These
shares represent all of the issued and outstanding shares of the Vic Murray &
Associates, Inc. common stock at November 1, 1996.
2) Transfer Date: Shares will be transferred on November 1, 1996.
3) Liabilities: Seller represents and warrants that as of the transfer
date, there no current or otherwise outstanding claims and/or liabilities
against Vic Murray & Associates, Inc. Further, he will save and defend buyer of
any such claims, damages, or suits arising from past business operations.
<PAGE> 2
4) Arbitration: Any and all disputes and/or claims between the parties
of this agreement will be settled by arbitration under the rules of the American
Arbitration Association at Seminole County, Florida.
4. REPRESENTATION AND WARRANTS: Seller warrants and represents that as of the
date of this agreement here are no liabilities, liens or encumbrances against
Vic Murray & Associates, Inc. The Seller further warrants and represents that as
of the date of this agreement, that there are no other outstanding shares of
Stock of Vic Murray & Associates, Inc., no UCC's have been filed against the
corporation and no Chattel Mortgages have been filed against the stock of the
corporation.
5. FINANCIAL STATEMENTS: Attached and incorporated herein as (exhibit A), are
the Balance Sheet and Income Statements as of October 31, 1996 which is a true
and correct reflection of the Financial Statement of Vic Murray & Associates,
Inc. This representation will survive the closing of this transaction.
6. ENTIRE AGREEMENT: All parties to this agreement hereby verify and attest that
jointly and severally, each party have negotiated and agreed to this purchase
transaction and that there are no other agreements that have been made, whether
orally or written.
IN WITNESS THEREOF, the parties as listed above executed this agreement on the
date as above written.
/s/ /s/ Victor E. Murray
- --------------------------------- -----------------------------------------
Victor E. Murray
President - Vic Murray & Associates, Inc.
/s/
- ---------------------------------
/s/ /s/ Bobby E. Story
- --------------------------------- -----------------------------------------
Bobby E. Story
Secretary - American Access Technologies,
/s/ Inc.
- ---------------------------------
<PAGE> 3
Exhibit "A" Page 1
VIC MURRAY & ASSOCIATES, INC.
Balance Sheet
October 31, 1996
<TABLE>
<CAPTION>
12-31-95 10-31-96
<S> <C> <C>
ASSETS
Cash $ 109 $ 949
Loans to Stockholder 1,197
------ -------
Total Assets $1,306 $ 949
====== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Other Misc. $ 306
------
Total Liabilities 306
Stockholders' Equity
Common Stock (7,000
shares authorized,
1,000 issued) $1 par 1,000 $ 1,000
Retained Earnings 0 (51)
------ -------
Total Stockholders' Equity 1,000 949
------ -------
Total Liabilities and Stockholders' Equity $1,306 $ 949
====== =======
</TABLE>
The above Balance Sheet is true and correct to the best of my knowledge and
belief.
/s/ Victor Murray
- ---------------------------
Victor Murray
Date: October 31, 1996
<PAGE> 4
Exhibit "A" Page 2
VIC MURRAY & ASSOCIATES, INC.
Income Statement
<TABLE>
<CAPTION>
Oct 96 YTD 1996
<S> <C> <C>
Commissions Earned $ 7,301 $93,005
Commissions Paid 3,945 36,015
------- -------
Gross Profit 3,355 56,991
Gen & Adm Expenses:
Advertising 375
Accounting 950
Auto & Truck 337 2,806
Bank Charges 15 120
Contributions 50
Dues & Subs. 96 1,332
Entertainment 1,812 5,496
Insurance - Auto 188 2,106
Insurance-Gen 207 2,375
Insurance - W/C 60 911
Legal 2,385 2,735
License 30 853
Office Supplies 875 7,051
Outside Services 250 2,248
Postage - UPS 76 1,400
Office Rent 428 3,740
Repairs & Maint 317
Trade Shows 1,730
Travel 2,115
Telephone 608 5,482
Sales Promotions 329 769
Utilities 295 2,392
------- -------
Total Expenses 7,992 47,353
------- -------
Net Income ($4,636) $ 9,637
======= =======
</TABLE>
The above Income Statement is true and correct to the best of my knowledge and
belief.
/s/ Victor Murray
- ----------------------
Victor Murray
Date: October 31, 1996
<PAGE> 5
INCORPORATED UNDER THE LAWS OF THE STATE OF FLORIDA
Certificate Number Shares
2 **1,000**
VIC MURRAY & ASSOCIATES INC.
5,000 SHARES AUTHORIZED
PAR VALUE $1.00
COMMON STOCK
This Certifies that AMERICAN ACCESS TECHNOLOGIES, INC. is the
registered holder of _________________________________ Shares of the Common
Stock of Vic Murray & Associates Inc. fully paid and non-assessable
transferable only on the books of the Corporation by the holder hereof in
person or by Attorney upon surrender of this Certificate properly endorsed.
In Witness Whereof, the said Corporation has caused this Certificate to be
signed by its duly authorized officers and its Corporate Seal to be hereunto
affixed.
this 1ST day of NOVEMBER A.D. 1996
/s/ B. E. STORY /s/ VICTOR E. MURRAY
- -------------------------------- ---------------------------------
SECRETARY PRESIDENT
[CORPORATE SEAL]
<PAGE> 6
INCORPORATED UNDER THE LAWS OF THE STATE OF FLORIDA
Certificate Number Shares
1 **1,000**
VIC MURRAY & ASSOCIATES INC.
5,000 SHARES AUTHORIZED
PAR VALUE $1.00
COMMON STOCK
This Certifies that VICTOR E. MURRAY is the registered holder of
_________________________________ Shares of the Common Stock of Vic Murray &
Associates Inc. fully paid and non-assessable transferable only on the books of
the Corporation by the holder hereof in person or by Attorney upon surrender of
this Certificate properly endorsed.
In Witness Whereof, the said Corporation has caused this Certificate to be
signed by its duly authorized officers and its Corporate Seal to be hereunto
affixed.
this 21ST day of DECEMBER A.D. 1994
/s/ DOEIS H. MURRAY /s/ VICTOR E. MURRAY
- -------------------------------- ---------------------------------
SECRETARY PRESIDENT
[CORPORATE SEAL]
<PAGE> 7
For Value Received, I hereby sell, assign and transfer unto
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE
[ ] TO AMERICAN ACCESS TECHNOLOGIES INC.
----------------------------------------
ONE THOUSAND
----------------------------------------
(1,000) Shares
- -------------------------------------
represented by the within Certificate, and do hereby irrevocably constitute and
appoint _______________________________________________________________________
______________________ Attorney
to transfer the said Shares on the books of the within named Corporation with
full power and substitution in the premises.
Dated: November 1, 1996
In presence /s/ Victor E. Murray
--------------------------------
NOTICE: THE SIGNATURE TO THIS ASSIGNMENT
MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE
FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.
<PAGE> 1
EXHIBIT 8.9
PROMISSORY NOTE
---------------
$100,000.00 DECEMBER 2, 1996
- ----------- ----------------
The undersigned AMERICAN ACCESS TECHNOLOGIES, INC., a Florida corporation
formerly known as American Access Technology, Inc., ("Maker") value received,
promises to pay to BRIDGE BANK, LTD. ("BBL"), or assigns, at _________________
or at such other location as the holder hereof shall specify to Maker, the sum
of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) one year from the date hereof.
Interest shall accrue on this note from the date hereof at the rate of 1.5% per
annum. After the maturity of any installment of principal or interest which is
not paid when due, interest on such unpaid installment shall accrue at the
highest rate allowed by law. This Note shall be prepaid out of the proceeds of
any sale of securities of the Maker.
In addition to, and not in limitation of the foregoing, the undersigned
further agrees, subject only to any limitation imposed by applicable law, to
pay all expenses, including reasonable attorneys' fees and legal expenses,
incurred by the holder of this Note in endeavoring to collect any amounts
payable hereunder that are not paid when due.
If default be made in the payment of any amount herein provided for, then,
or at any time thereafter, at holder's option the security given to secure the
payment of this Note may be foreclosed. Failure to exercise such option, or any
other rights holder may have in the event of any such default, shall not
constitute a waiver of the right to exercise such option or any other rights in
the event of any subsequent default, whether of the same or a different nature.
<PAGE> 2
This Note may be prepaid in full or in part at any time and from time to
time without premium or penalty.
The Maker hereby consents to any extensions of time, renewals, releases or
any party to this note, waivers or modifications that may be granted on
consented to by the holder in respect of the time of payment or any other
provisions of this Note. Maker hereby waives requirement of presentment of this
Note.
This Note is made under and governed by the laws of the State of Florida.
AMERICAN ACCESS TECHNOLOGIES, INC.
By: /s/
------------------------------------
CFO, Secretary
2
<PAGE> 1
EXHIBIT 11.1
AMERICAN ACCESS TECHNOLOGIES, INC.
(A Development Stage Enterprise)
STATEMENT RE: COMPUTATION OF NET LOSS PER COMMON SHARE
<TABLE>
<CAPTION>
Year Ended
December 31,
1997 1996
---------- -----------
<S> <C> <C>
Net Loss $ (426,455) $ (61,642)
========== ===========
Weighted Average Common Shares Outstanding 3,033,000 2,800,000
Adjustments to Reflect Requirements of the
Securities and Exchange Commission SAB 83:
Common stock issued to director within the period 50,000 50,000
---------- -----------
Total weighted average number of common
shares and equivalents 3,083,000 2,850,000
========== ===========
Net Loss per Common Share $ (0.14) $ (0.02)
========== ===========
</TABLE>
<PAGE> 1
EXHIBIT 23.1
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
---------------------------------------------------
We hereby consent to the use in the Prospectus constituting part of this
Registration Statement on Form SB-2 of our report dated March 25, 1998 (which
contains an explanatory paragraph that describes a condition that raises
substantial doubt as to the ability of the Company to continue as a going
concern) relating to the financial statements of American Access Technologies,
Inc. appearing in such Prospectus. We also consent to the reference to us
under the headings "Experts" in such Prospectus.
RACHLIN COHEN & HOLTZ
Miami, Florida
April 23, 1998
