UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington. DC 20549
FORM 10-SB
GENERAL FORM FOR REGISTRATION OF SECURTIES
OF SMALL BUSINESS ISSUERS
Pursuant to Section 12(b) or (g) of the Securities and Exchange
Act of 1934
FAR EAST VENTURES, INC.
(Exact name of Small Business Issuer in its charter)
Nevada 88-0378451
(State of organization) (I.R.S. Employer Identification No.)
1700 E. Desert Inn Rd., Suite 102, Las Vegas, NV 89109
(Address of principal executive offices)
Registrant's telephone number, including area code (702) 735-5960
Securities to be registered pursuant to Section 12(b) of the Act:
None
Securities to be registered pursuant to Section 12(g) of the Act:
Common Stock, $0.001 par value per share
ITEM 1. DESCRIPTION OF BUSINESS
Background
Far East Ventures, Inc. (the "Company") is a Nevada corporation
formed on November 23, 1993. Its principal place of business is
located at 1700 E. Desert Inn Rd., Suite 102, Las Vegas, NV
89109. The Company has no operating history other than
organizational matters. The Company was unable to secure
financing for its initial venture, and that business plan was
discontinued.
The primary activity of the Company currently involves seeking a
company or companies that it can acquire or with whom it can
merge. The Company has not selected any company for acquisition
or merger and does not intend to limit potential acquisition
candidates to any particular field or industry, but does retain
the right to limit acquisition or merger candidates, if it so
chooses, to a particular field or industry. The Company's plans
are in the conceptual stage only.
Plan of Operation - General
The Company's plan is to seek, investigate and, if such
investigation warrants, acquire an interest in one or more
business opportunities presented to it by persons or firms who or
which desire to seek the perceived advantages of a publicly held
corporation. At this time, the Company has no plan, proposal,
agreement, understanding or arrangement to acquire or merge with
any specific business or company, and the Company has not
identified any specific business or company for investigation and
evaluation. No member of Management or promoter of the Company
has had any material discussions with any other company with
respect to any acquisition for that company. The Company will not
restrict its search to any specific business, industry or
geographical location, and the Company may participate in
business venture of virtually any kind or nature. The discussion
of the proposed business under this caption and throughout this
Registration Statement is purposefully general and is not meant
to be restrictive of the Company's virtually unlimited discretion
to search for and enter into potential business opportunities.
The Company's potential success is heavily dependent on the
Company's management, which will have virtually unlimited
discretion in searching for and entering into a business
opportunity. None of the officers and directors of the Company
has had any experience in the proposed business of the Company.
Management anticipates that it will only participate in one
potential business venture. This lack of diversification should
be considered a substantial risk in investing in the Company
because it will not permit the Company to offset potential losses
from one venture against gains from another.
The Company may seek a business opportunity with a firm which
only recently commenced operations, or a developing company in
need of additional funds for expansion into new products or
markets or seeking to develop a new product or service, or an
established business which may be experiencing financial or
operating difficulties and needs additional capital which is
perceived to be easier to raise by a public company. In some
instances, a business opportunity may involve the acquisition or
merger with a corporation which does not need substantial
additional cash but which desires to establish a public trading
market for its common stock. The Company may purchase assets and
establish wholly-owned subsidiaries in various businesses or
purchase existing businesses as subsidiaries.
The Company anticipates that the selection of a business
opportunity in which to participate will be complex and extremely
risky. Because of general economic conditions, rapid
technological advances being made in some industries, and
shortages of available capital, management believes that there
are numerous firms seeking the benefits of a publicly-traded
corporation. Such perceived benefits of a publicly traded
corporation may include facilitating or improving the terms on
which additional equity financing may be sought, providing
liquidity for the principals of a business, creating a means for
providing incentive stock options or similar benefits to key
employees, providing liquidity (subject to restrictions of
applicable statues) for all shareholders, and other factors.
Potentially available business opportunities may occur in many
different industries and at various stages of development, all of
which will make the task of comparative investigation and
analysis of such business opportunities extremely difficult and
complex.
As is customary in the industry, the Company may pay a finder's
fee for locating an acquisition prospect. If any such fee is
paid, it will be approved by the Company's Board of Directors and
will be in accordance with the industry standards. Such fees are
customarily between 1% and 5% of the size of the transaction,
based upon a sliding scale of the amount involved. Such fees are
typically in the range of 5% on a $1,000,000 transaction ratably
down to 1% in a $4,000,000 transaction. Management has adopted a
policy that such a finder's fee or real estate brokerage fee
could, in certain circumstances, be paid to any employee,
officer, director or 5% shareholder of the Company, if such
person plays a material role in bringing a transaction to the
Company.
As part of any transaction, the acquired company may require that
Management or other stockholders of the Company sell all or a
portion of their shares to the acquired company, or to the
principals of the acquired company. It is anticipated that the
sales price of such shares will be lower than the current market
price or anticipated market price of the Company's Common Stock.
The Company's funds are not expected to be used for any stock
purchase from insiders. The Company's shareholders will not be
provided the opportunity to approve or consent to such sale. The
opportunity to sell all or a portion of their shares in
connection with an acquisition may influence management's
decision to enter into a specific transaction. However,
management believes that since the anticipated sales price will
be less than the market value, the potential of a stock sale by
management will be a material factor in their decision to enter a
specific transaction.
The above description of potential sales of management stock is
not based upon any corporate bylaw, shareholder or board
resolution, or contract or agreement. No other payments of cash
or property are excepted to be received by Management in
connection with any acquisition.
The Company has not formulated any policy regarding the use of
consultants or outside advisors, but does not anticipate that it
will use the service of such persons.
The Company has insufficient capital with which to provide the
owners of business opportunities with any significant cash or
other assets. However, management believes the Company will offer
owners of business opportunities the opportunity to acquire a
controlling ownership interest in a public company at
substantially less cost than is required to conduct an initial
public offering. The owners of the business opportunities will,
however, incur significant post-merger or acquisition
registration costs in the event they wish to register a portion
of their shares for subsequent sale. The Company will also incur
significant legal and accounting costs in connection with the
acquisition of a business opportunity, including the costs of
preparing post-effective amendments, Forms 8-K, agreements, and
related reports and documents. Nevertheless, the officers and
directors of the Company have not conducted market research and
are not aware of statistical data which would support the
perceived benefits of a merger or acquisition transaction for the
owners of a business opportunity. The Company does not intend to
make any loans to any prospective merger or acquisition
candidates or to unaffiliated third parties.
Sources of Opportunities
The Company anticipates that business for possible acquisition
will be referred by various sources, including its officers and
directors, professional advisors, securities broker-dealers,
venture capitalists, members of the financial community, and
others who may present unsolicited proposals.
The Company will seek a potential business opportunity from all
known sources, but will rely principally on personal contacts of
its officers and directors as well as indirect associations
between them and other business and professional people. It is
not presently anticipated that the Company will engage
professional firms specializing in business acquisitions or
reorganizations.
The officers and directors of the Company are currently employed
in other positions and will devote only a portion of their time
(not more than one hour per week) to the business affairs of the
Company, until such time as an acquisition has been determined to
be highly favorable, at which time they expect to spend full-time
investigating and closing any acquisition for a period of two
weeks. In addition, in the face of competing demands for their
time, the officers and directors may grant priority to their full-
time positions rather than to the Company.
In addition, the officers and directors may have interests in
other public companies with similar corporate goals, or in other
private companies seeking to combine with a public company such
as this Company. The officers and directors intend to conduct
their search and evaluate candidates on an arms' length basis,
and will disclose any interest they may have in a potential
target. With respect to interests they have in other companies
that may have competing goals with this Company, the officers and
directors feel that there are a sufficient number of attractive
targets to enable them to satisfy the goals of this and those
other companies without favoring either company. There is, of
course, a risk that one of the targets may end up becoming more
successful than the target that combines into this Company, or
that the target that combines with this Company does not achieve
success. That is the type of risk, however, that an investor can
reduce by diversification of his or her investment.
Evaluation of Opportunities
The analysis of new business opportunities will be undertaken by
or under the supervision of the officers and directors of the
Company (see "Management"). Management intends to concentrate on
identifying prospective business opportunities which may be
brought to its attention through present associations with
management. In analyzing prospective business opportunities,
management will consider such matters as the available technical,
financial and managerial resources; working capital and other
financial requirements; history of operation, if any; prospects
for the future; present and expected competition; the quality and
experience of management services which may be available and the
depth of that management; the potential for further research,
development or exploration; specific risk factors not now
foreseeable but which then may be anticipated to impact the
proposed activities of the Company; the potential for growth or
expansion; the potential for profit; the perceived public
recognition or acceptance of products, services or trades; name
identification; and other relevant factors. Officers and
directors of each Company will meet personally with management
and key personnel of the firm sponsoring the business opportunity
as part of their investigation. To the extent possible, the
Company intends to utilize written reports and personal
investigation to evaluate the above factors. The Company will not
acquire or merge with any company for which audited financial
statements cannot be obtained.
It may be anticipated that any opportunity in which the Company
participates will present certain risks. Many of these risks
cannot be adequately identified prior to selection of the
specific opportunity, and the Company's shareholders must,
therefore, depend on the ability of management to identify and
evaluate such risk. In the case of some of the opportunities
available to the Company, it may be anticipated that the
promoters thereof have been unable to develop a going concern or
that such business is in its development stage in that it has not
generated significant revenues from its principal business
activities prior to the Company's participation. There is a risk,
even after the Company's participation in the activity and the
related expenditure of the Company's funds, that the combined
enterprises will still be able to become a going concern or
advance beyond the development stage. Many of the opportunities
may involve new and untested products, processes, or market
strategies which may not succeed. Such risks will be assumed by
the Company and, therefore, its shareholders.
There is the additional risk that the Company will not find a
suitable target. Management does not believe the Company will
generate revenue without finding and completing a transaction
with a suitable target company. If no such target is found,
therefore, no return on an investment in the Company will be
realized, and there will not, most likely, be a market for the
Company's stock.
The Company will not restrict its search for any specific kind of
business, but may acquire a venture which is in its preliminary
or development stage, which is already in operation, or in
essentially any stage of its corporate life. It is currently
impossible to predict the status of any business in which the
Company may become engaged, in that such business may need
additional capital, may merely desire to have its shares publicly
traded, or may seek other perceived advantages which the Company
may offer.
Acquisition of Opportunities
In implementing a structure for a particular business
acquisition, the Company may become a party to a merger,
consolidation, reorganization, joint venture, franchise or
licensing agreement with another corporation or entity. It may
also purchase stock or assets of an existing business. On the
consummation of a transaction, it is possible that the present
management and shareholders of the Company will not be in control
of the Company. In addition, a majority or all of the Company's
officers and directors may, as part of the terms of the
acquisition transaction, resign and be replaced by new officers
and directors without a vote of the Company's shareholders. It is
anticipated that securities issued in any such reorganization
would be issued in reliance on exemptions from registration under
applicable Federal and state securities laws. In some
circumstances, however, as a negotiated element of this
transaction, the Company may agree to register such securities
either at the time the transaction is consummated, under certain
conditions, or at specified time thereafter. The issuance of
substantial additional securities and their potential sale into
any trading market which may develop in the Company's Common
Stock may have a depressive effect on such market. While the
actual terms of a transaction to which the Company may be a party
cannot be predicated, it may be expected that the parties to the
business transaction will find it desirable to avoid the creation
of a taxable event and thereby structure the acquisition in a so
called "tax free" reorganization under Sections 368(a)(1) or 351
of the Internal Revenue Code of 1986, as amended (the "Code"). In
order to obtain tax free treatment under the Code, it may be
necessary for the owners of the acquired business to own 80% or
more of the voting stock of the surviving entity. In such event,
the shareholders of the Company, including investors in this
offering, would retain less than 20% of the issued and
outstanding shares of the surviving entity, which could result in
significant dilution in the equity of such shareholders.
As part of the Company's investigation, officers and directors of
the Company will meet personally with management and key
personnel, may visit and inspect material facilities, obtain
independent analysis or verification of certain information
provided, check reference of management and key personnel, and
take other reasonable investigative measures, to the extent of
the Company's limited financial resources and management
expertise.
The manner in which each Company participates in an opportunity
will depend on the nature of the opportunity, the respective
needs and desires of the Company and other parties, the
management of the opportunity, and the relative negotiating
strength of the Company and such other management.
With respect to any mergers or acquisitions, negotiations with
target company management will be expected to focus on the
percentage of the Company which the target company's shareholders
would acquire in exchange for their shareholdings in the target
company. Depending upon, among other things, the target company's
assets and liabilities, the Company's shareholders will, in all
likelihood, hold a lesser percentage ownership interest in the
Company following any merger or acquisition. The percentage
ownership may be subject to significant reduction in the event
the Company acquires a target company with substantial assets.
Any merger or acquisition effected by the Company can be expected
to have a significant dilutive effect on the percentage of shares
held by the Company's then shareholders, including purchasers in
this offering.
Management has advanced, and will continue to advance, funds
which shall be used by the Company in identifying and pursuing
agreements with target companies. Management anticipates that
these funds will be repaid from the proceeds of any agreement
with the target company, and that any such agreement may, in
fact, be contingent upon the repayment of those funds.
The Company will not have sufficient funds to undertake any
significant development, marketing and manufacturing of any
products which may be acquired. Accordingly, following the
acquisition of any such product, the Company will, in all
likelihood, be required to either seek debt or equity financing
or obtain funding from third parties, in exchange for which the
Company would probably be required to give up a substantial
portion of its interest in any acquired product. There is no
assurance that the Company will be able either to obtain
additional financing or interest third parties in providing
funding for the further development, marketing and manufacturing
of any products acquired.
It is anticipated that the investigation of specific business
opportunities and the negotiation, drafting and execution of
relevant agreements, disclosure documents and other instruments
will require substantial management time and attention and
substantial costs for accountants, attorneys and others. If a
decision is made not to participate in a specific business
opportunity the cost therefore incurred in the related
investigation would not be recoverable. Furthermore, even if an
agreement is reached for the participation in a specific business
opportunity, the failure to consummate that transaction may
result in the loss of the Company of the related costs incurred.
Management believes that the Company may be able to benefit from
the use of "leverage" in the acquisition of a business
opportunity. Leveraging a transaction involves the acquisition of
a business through incurring significant indebtedness for a large
percentage of the purchase price of that business. Through
leveraged transaction, the Company would be required to use less
of its available funds for acquiring the business opportunity
and, therefore, could commit those funds to the operations of the
business opportunity, to acquisition of other business
opportunities, or to other activities. The borrowing involved in
a leveraged transaction will ordinarily be secured by the assets
of the business opportunity to be acquired. If the business
opportunity acquired is not able to generate sufficient revenues
to make payments on the debt incurred by the Company to acquire
that business opportunity, the lender would be able to exercise
the remedies provided by law or by contract. These leveraging
techniques, while reducing the amount of funds that the Company
must commit to acquire a business opportunity, may
correspondingly increase the risk of loss to the Company. No
assurance can be given as to the terms or availability of
financing for any acquisition by the Company. During periods when
interest rates are relatively high, the benefits of leveraging
are not as great as during periods of lower interest rates,
because the investment in the business opportunity held on a
leveraged basis will only be profitable if it generates
sufficient revenues to cover the related debt and other costs of
the financing. Lenders from which the Company may obtain funds
for purposes of a leveraged buy-out may impose restrictions on
the future borrowing, distribution, and operating policies of the
Company. It is not possible at this time to predict the
restrictions, if any, which lenders may impose, or the impact
thereof on the Company.
Competition
The Company is an insignificant participant among firms which
engage in business combinations with, or financing of,
development-stage enterprises. There are many established
management and financial consulting companies and venture capital
firms which have significantly greater financial and personal
resources, technical expertise and experience than the Company.
In view of the Company's limited financial resources and
management availability, the Company will continue to be a
significant competitive disadvantage vis-a-vis the Company's
competitors.
Regulation and Taxation
The Investment Company Act of 1940 defines an "investment
company" as an issuer which is or holds itself out as being
engaged primarily in the business of investing, reinvesting or
trading securities. While the Company does not intend to engage
in such activities, the Company obtains or continues to hold a
minority interest in a number of development stage enterprises.
The Company could be expected to incur significant registration
and compliance costs if required to register under the Investment
Company Act of 1940. Accordingly, management will continue to
review the Company's activities from time to time with a view
toward reducing the likelihood the Company could be classified as
an "investment company".
The Company intends to structure a merger or acquisition in such
manner as to minimize Federal and state tax consequences to the
Company and to any target company.
Employees
The Company's only employees at the present time are its officers
and directors, who will devote as much time as the Board of
Directors determine is necessary to carry out the affairs of the
Company. (See "Management").
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION
See "DESCRIPTION OF BUSINESS" above.
ITEM 3. PROPERTIES.
The Company has the use of a limited amount of office space from
one of the directors at no cost. The Company pays its own charges
for long distance telephone calls and other miscellaneous
secretarial, photocopying, and similar expenses. There is no
rental agreement or cost for these services.
ITEM 4. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.
The following table sets forth information relating to the
beneficial ownership of the Company's common stock by those
persons holding beneficially more than 5% of the Company's
capital stock, by the Company's directors and executive officers,
and by all of the Company's directors and executive officers as a
group. In this case, the only holders of more than 5% of the
Company's common stock are the directors and executive officers,
so only one table is shown.
<TABLE>
<S> <C> <C> <C>
Title of Name/Address of Shares Beneficially Percent of
Class Owner Owned Class
Common Lizabeth Diller 600,000 13.95%
9808 Piper Glen
Las Vegas, NV
89134
Common Randy McDowell 200,000 4.65%
100 N. Wallace St.
#232
Henderson, NV
89017
Common Michael L. Eaton 900,000 20.93%
4900 E. Tropicana
Ave.
Las Vegas, NV
89121
Common Andrew W. Berney 500,000 11.63%
4056 Elkridge Dr.
Las Vegas, NV
89121
</TABLE>
ITEM 5. DIRECTORS AND EXECUTIVE OFFICERS
The members of the Board of Directors of the Company serve until
the next annual meeting of the stockholders, or until their
successors have been elected. The officers serve at the pleasure
of the Board of Directors. Information as to the directors and
executive officers of the Company is as follows:
<TABLE>
<S> <C> <C>
Name/Address Age Position
Lizabeth Diller 36 President / Director
9808 Piper Glen
Las Vegas, NV 89134
Michael L. Eaton 61 Secretary / Treasurer / Director
4900 E. Tropicana Ave.
Las Vegas, NV 89121
Andrew W. Berney 40 Director
4056 Elkridge Dr.
Las Vegas, NV 89121
Randy McDowell 42 Director
100 N. Wallace
St. #232
Henderson, NV 89017
</TABLE>
Lizabeth Diller President/Director
Ms. Diller has been a Director and Officer of the corporation
since April 1994. Since February 1994, she has been the Executive
Casino Slot Host at Caesar's Palace in Las Vegas, NV. Ms.
Diller's responsibilities here include developing a clientele
through marketing and customer service, which includes
arrangements for accommodations, entertainment, and dining,
granting complimentaries based on play, and entertaining VIP
players at special events and parties.
From October of 1992 to February 1994, she served as Assistant
Store Manager for Escada Retail Inc., in Las Vegas, Nevada.
Responsibilities included supervision development and sales
support for staff. Handling customers special requests and direct
communication with buyers and vendors regarding merchandise
needs. In July of 1990 to July 1992 Ms. Diller was Store Manager
for Victoria's Secret in Brea, California. Her responsibilities
included supervision and training of a staff of 18 including 2
Assistant Managers. Developing and motivating staff to high
levels of sales performance and customer service standards. She
was also responsible for maintaining high standards in
merchandise presentation to maximize store volume at all times.
From August 1986 to February 1990 she served as a Store Manager
for Ann Taylor in Torrance, California. Here the responsibilities
included overseeing and managing a profitable store. Supervision,
training, and team building for 25 associates. Development of two
Assistant Managers in the areas of sales, expertise, personnel,
merchandising and store operations. Maintain high standards in
merchandise presentation with the ability to analyze merchandise
needs then communicating needs to supervisors and buyers.
Starting in April 1980 and ending in July 1986, Ms. Diller served
as an Assistant Manager for Women's Sportswear at The Bon Marche'
in Eugene, Oregon. Responsibilities here included customer
special requests, inventory and loss control, major sale set-up
and break-down. Frequent buyer communication and striving to
maintain an excellent rapport with fellow associates.
Michael L. Eaton Secretary/Treasurer/Director
Michael L. Eaton has been a Director and Officer of the
corporation since April of 1994. Since November 1994 to Present
Mr. Eaton has been in the employ of Columbine Ventures Las Vegas,
Nevada as the President of said company. His responsibilities
were as an overseer for the taverns of the corporation.
Since February 1994 Mr. Eaton has been with Jet West Airlines of
Las Vegas, Nevada. Here Mr. Eaton developed Maintenance Manuals
and an Inspection program for the Airline. He also developed
financial forecasts, aircraft and equipment procurement programs
and the DOT document.
From August 1993 to January 1994 Mr. Eaton worked at Grand
Airways, Las Vegas, Nevada, as the Director of Quality Control.
Here Mr. Eaton developed the Maintenance, inspection and store
programs for the FAR 121 airline.
From December 1992 to July 1993, Mr. Eaton was in the Employ of
Family Airlines, Las Vegas, Nevada as the Director of Quality
Control. Here Mr. Eaton developed maintenance manuals for the
company as well as establishing all inspection procedures and
record keeping standards for the airline.
From August 1992 to December 1992 Mr. Eaton was working for the
Imperial Palace in Las Vegas, Nevada as the Company Maintenance
Representative. At the Imperial Palace Mr. Eaton worked with two
727-100 aircraft while in C&D checks.
From May 1990 to December 1991 Mr. Eaton worked for Aerotest,
Inc., of Mojave, California as the Supervisor of the Overhaul and
Modification Department. Here Mr. Eaton supervised overhaul,
repair and modifications of various types of customer aircraft.
From February 1989 to February 1990 Mr. Eaton worked for Private
Jet Expeditions of Wichita, Kansas as Chief Inspector. Here Mr.
Eaton performed normal duties of Chief Inspector for Boeing 727
Aircraft. He was also the Company representative at Page Avjet
during heavy check and modification.
From November 1987 to November 1988, Mr. Eaton worked for Neptune
Aircraft Services of Las Vegas, Nevada as the Director of
Maintenance. Here Mr. Eaton authored the company's Policy and
Procedures Manuals. He established and maintained both the
Insurance and Maintenance Departments.
From January 1984 to November 1987, Mr. Eaton worked for Sunworld
Airlines of Las Vegas, Nevada as the Manager of Maintenance.
During his employment here Mr. Eaton was responsible for the
operation of seven DC-9 and five Boeing 737-300 aircraft. He
managed 45 employees, including stores and line maintenance.
From June 1969 to August 1983, Mr. Eaton was the Supervisor and
Lead Mechanic for Continental Airlines in Denver, Colorado. Here
Mr. Eaton worked in a full range of experience in line and
terminal maintenance, inspection, heavy checks, engine overhaul
(jet and turbo-prop), aircraft, avionics troubleshooting, and
autoshop.
Randy J. McDowell Director
Randy J. McDowell has been a Director since April 1994. Since
August 1, 1996 he has served as a Senior Loan Officer for United
Mortgage Guarantee, Las Vegas, Nevada. His abilities include
exceptional mathematical skills, management, and exceptional
organizational skills. As a manager he has been responsible for
over 30 million dollars in loans outstanding, various training
and solicitation programs, office budget control, hiring and
training office personnel, and forecasting monthly and yearly
office growth. From November 1994 to July 31, 1996, he served as
a Senior Loan Officer for United Lending Group, Las Vegas,
Nevada.
From March 1993 to November 1994, he served as Senior Assistant
Manager for The Money Store, Las Vegas, Nevada.
From September 1992 to March 1993, he was Senior Collector for
Quality Home Foods, Las Vegas, Nevada.
From January 1989 to September 1992, he owned Film Productions,
Palm Springs, CA.
From November 1986 to January 1989, he was a Credit Collections
Manager for Riverside Thrift and Loan, Las Vegas, Nevada.
From November 1982 to November 1986 he was Manager of the
Associates Finance, Palm Springs, CA.
From June 1979 to November 1982 he was the Executive Branch
Manager for Transamerica Financial Services, Palm Springs, CA.
From June 1974 to June 1979, he served as a Sergeant/E-5 in the
5th Special Forces in the United States Army, Rad tolz, Germany.
He is a graduate of the University of Michigan, Ann Arbor, MI in
1979. While there, he was a Business analysis major and received
a Business Science Degree.
He also graduated from Cass Technical High School, Detroit, MI
with honors in 1974.
In addition to these educational achievements, he has also
attended many company sponsored courses on training ,sales, and
management.
Andrew W. Berney Director
Mr. Berney has been a Director of the Issuer since September 27,
1997.
Since February 1996, he has been a Wholesale Account Manager for
United Mortgage Guarantee, Las Vegas, Nevada.
Since January 1996, he has also served as President of M.M. Cork
Enterprises, Inc., a publicly traded company.
Since January 1996, Mr. Berney has served as Secretary/Director
of Torrey Pines Nevada, Inc., Las Vegas, Nevada a publicly traded
company.
From June 21, 1991 to present, he has been a Director and Officer
of LPI Holdings, Inc.
From December 5, 1992 to present, he has been a Director and
Officer of Winecup Lands & Cattle Company, Inc.
From October 21, 1993 to present, he has been a Director and
Officer of Corporate Tours & Travel, Inc.
From July 1995 to September 1995, he was a Mortgage Loan Officer
with United Lending Group, Las Vegas, Nevada.
From December 1994 to June 1995, he was Branch Manager of
Equicredit Corporation, Las Vegas, Nevada., a company engaged in
the wholesale mortgage real estate loan business.
From July 1993 to November 1994, Mr. Berney was District Manager
for Ford Consumer Finance Company, Inc., Las Vegas, Nevada.
In October 1992 he joined The Moneystore, Las Vegas, Nevada as
Branch Manager and resigned in July 1996.
From February 1992 to October 1992, he was a Loan Officer in the
direct sales department of Ford Consumer Finance Company, Inc.,
Laguna Hills, CA.
From March 1988 to December 1991, he was a Senior Executive
Branch Manager for Transamerica Financial Services, Inc., Santa
Ana, CA.
From December 1982 to June 1985, he was an Assistant Branch
Manager for Associates Financial Services of Arizona, Scottsdale,
AZ.
ITEM 6. EXECUTIVE COMPENSATION
No compensation of directors or executive officers is paid or
anticipated to be paid by the Company until an acquisition is
completed. On acquisition of a business opportunity, current
management may resign and be replaced by persons associated with
the business acquired, particularly if the Company participates
in the target company by effecting a reorganization, merger, or
consolidation. If any member of current management remains after
effecting an acquisition, that member's time commitment will
likely be adjusted based on the nature and method of the
acquisition and location of the business. That time commitment
cannot be predicted prior to the acquisition. Compensation of
management will be determined by the board of directors in place
after the acquisition, and shareholders of the Company will not
have the opportunity to vote on or approve such compensation.
ITEM 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
There are no relationships or transactions to be reported.
ITEM 8. LEGAL PROCEEDINGS
The Company is not a party to any material pending legal
proceedings and, to the best of its knowledge, no such action by
or against the Company has been threatened.
ITEM 9. MARKET PRICE FOR COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS.
The Company's common stock is traded on the over-the-counter
market in the United States under the symbol FEVI. There has been
no trading the Company's stock, therefore, high and low bid
quotations are not available.
There are 40 record owners of the Company's stock. The Company
has never paid a cash dividend and has no present intention of
doing so in the foreseeable future.
ITEM 10. RECENT SALES OF UNREGISTERED SECURITIES.
None.
ITEM 11. DESCRIPTION OF SECURITIES.
The Company's Articles of Incorporation authorizes the issuance
of 50,000,000 shares of Common Stock, $0.001 par value per share,
of which 4,300,000 shares are outstanding as of November, 1997.
Holders of common shares are entitled to one vote for each share
on all matters to be voted on by the stockholders. The shares are
fully paid, non-assessable, without pre-emptive rights, and do
not carry cumulative voting rights. Holders of common shares are
entitled to share ratably in dividends, if any, as may be
declared by the Company from time-to-time, from funds legally
available. In the event of a liquidation, dissolution, or winding
up of the Company, the holders of shares of common stock are
entitled to share on a pro-rata basis all assets remaining after
payment in full of all liabilities.
Of the shares that are currently outstanding, 2,200,000 are
subject to resale restrictions and, unless registered under the
Securities Act of 1933 (the "Act") or exempted under another
provision of the Act, will be ineligible for sale in the public
market. Sales may be made after two years from their acquisition
in accordance with Rule 144 promulgated under the Act.
In general, Rule 144 permits a person (or persons whose shares
are aggregated) who has beneficially owned shares that were
acquired privately (either directly from the Company or from an
Affiliate of the Company) for at least two years, or who is an
Affiliate of the Company, to sell within any three-month period,
a number of such shares that does not exceed the greater of 1% of
the then-outstanding shares of the Company's Common Stock
(approximately 43,000 as of the date of this statement) or the
average weekly trading volume in the Company's common stock
during the four calendar weeks immediately preceding such sale.
Sales under Rule 144 are also subject to certain manner of sale
provisions, notice requirements, and the availability of current
public information about the Company. A person (or persons whose
shares are aggregated) who is not deemed to have been an
Affiliate at any time during the 90 days preceding a sale, and
who has beneficially owned shares for at least three years, is
entitled to sell all such shares under Rule 144 without regard to
the volume limitations, current public information requirements,
manner of sale provisions, or notice requirements. Sales of
substantial amounts of the Common Stock of the Company in the
public market could affect prevailing market prices adversely.
ITEM 12. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The Company and its affiliates may not be liable to its
shareholders for errors in judgment or other acts, or omissions
not amounting to intentional misconduct, fraud or a knowing
violation of the law, since provisions have been made in the
Articles of incorporation and By-laws limiting such liability.
The Articles of Incorporation and By-laws also provide for
indemnification of the officers and directors of the Company in
most cases for any liability suffered by them or arising from
their activities as officers and directors of the Company if they
were not engaged in intentional misconduct, fraud or a knowing
violation of the law. Therefore, purchasers of these securities
may have a more limited right of action than they would have
except for this limitation in the Articles of Incorporation and
By-laws.
The officers and directors of the Company are accountable to the
Company as fiduciaries, which means such officers and directors
are required to exercise good faith and integrity in handling the
Company's affairs. A shareholder may be able to institute legal
action on behalf of himself and all others similarly stated
shareholders to recover damages where the Company has failed or
refused to observe the law.
Shareholders may, subject to applicable rules of civil procedure,
be able to bring a class action or derivative suit to enforce
their rights, including rights under certain federal and state
securities laws and regulations. Shareholders who have suffered
losses in connection with the purchase or sale of their interest
in the Company in connection with such sale or purchase,
including the misapplication by any such officer or director of
the proceeds from the sale of these securities, may be able to
recover such losses from the Company.
ITEM 13. FINANCIAL STATEMENTS
The financial statements and supplemental data required by this
Item 13 follow the index of financial statements appearing at
Item 15 of this Form 10.
ITEM 14. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.
Not Applicable.
ITEM 15. FINANCIAL STATEMENTS AND EXHIBITS
FINANCIAL STATEMENTS
LIST OF EXHIBITS
A. INDEPENDENT AUDITORS' REPORT
B. ASSETS
C. LIABILITIES AND STOCKHOLDERS' EQUITY
D. STATEMENT OF OPERATIONS
E. STATEMENT OF STOCKHOLDERS' EQUITY
F. STATEMENT OF CASH FLOWS
G. NOTES TO FINANCIAL STATEMENTS
INDEPENDENT AUDITOR'S REPORT
Board of Directors September 8, 1998
Far East Ventures, Inc.
Las Vegas, Nevada
I have audited the accompanying Balance Sheets of Far East
Ventures, Inc., (A Development Stage Company), as of June 30,
1998, December 31, 1997 and December 31, 1996, and the related
statements of operations, stockholders' equity and cash flows for
period January 1, 1998 to June 30, 1998, and the two years ended
December 31, 1997 and December 31, 1996. These financial
statements are the responsibility of the Company's management. My
responsibility is to express an opinion on these financial
statements based on my audit.
I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. I believe that my
audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Far
East Ventures, Inc., (A Development Stage Company), as of June
30, 1998, December 31, 1997, and December 31, 1996, and the
results of its operations and cash flows for the period January
1, 1998 to June 30, 1998 and the two years ended December 31,
1997, and December 31, 1996, in conformity with generally
accepted accounting principles.
The accompanying financial statements have been prepared assuming
the Company will continue as a going concern. As discussed in
Note 3 to the financial statements, the Company has no
established source of revenue. This raises substantial doubt
about its ability to continue as a going concern. Management's
plan in regard to these matters are also described in Note 3. The
financial statements do not include any adjustments that might
result from outcome of this uncertainty.
/S/ Barry L. Friedman
Barry L. Friedman
Certified Public Accountant
Las Vegas, NV
FAR EAST VENTURES, INC.
(A Development Stage Company)
BALANCE SHEET
ASSETS
<TABLE>
<S> <C> <C> <C>
June 30, December 31, December 31,
1998 1997 1996
CURRENT ASSETS: $0 $0 $0
TOTAL CURRENT ASSETS $0 $0 $0
OTHER ASSETS; $16 $36 $75
Organization Costs
(Net)
TOTAL OTHER ASSETS $16 $36 $75
TOTAL ASSETS $16 $36 $75
</TABLE>
See accompanying notes to financial statements & audit report
FAR EAST VENTURES, INC.
(A Development Stage Company)
BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<S> <C> <C> <C>
June 30, December December 31,
1998 31, 1997 1996
CURRENT LIABILITIES;
Officers Advances (Note #6) $ 1,925 $ 1,250 $350
TOTAL CURRENT LIABILITIES $ 1,925 $1,250 $350
STOCKHOLDERS' EQUITY; (Note 1)
Common stock, $.001 par value $4,300 $4,300 $4,300
Authorized 50,000,000 shares
issued And outstanding at
December 31, 1996 - 4,300,000 shs
December 31, 1997 - 4,300,000 shs
June 30, 1998 - 4,300,000 shs
Additional paid in Capital 0 0 0
Accumulated loss -6,209 -5,514 -4,575
TOTAL STOCKHOLDERS' EQUITY $-1,909 $-1,214 $-275
TOTAL LIABILITIES AND $16 $36 $75
STOCKHOLDERS' EQUITY
</TABLE>
FAR EAST VENTURES, INC.
(A Development Stage Company)
STATEMENT OF OPERATION
<TABLE>
<S> <C> <C> <C> <C>
Jan. 1, Year Ended Year Ended Nov. 23,
1998 to Dec. 31, Dec. 31, 1993
June 30, 1997 1996 (inception)
1998 to June 30,
1998
INCOME:
Revenue $0 $0 $0 $0
EXPENSES:
General, Selling And $675 $900 $350 $5,455
Administrative
Amortization 20 39 39 169
Total Expenses $695 $939 $389 $5,624
Net Profit/Loss(-) $-695 $-939 $-389 $-5,624
Net Profit/Loss (-) $-.0002 $-.0002 -.0001 $-.0013
Per weighted Share
(Note1)
Weighted average 4,300,000 4,300,000 4,300,000 4,300,000
Number of common
Shares outstanding
</TABLE>
See accompanying notes to financial statements & audit report
FAR EAST VENTURES, INC.
(A Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<S> <C> <C> <C> <C>
Common Stock Additional Accumulated
Shares Amount paid-in Deficit
Capital
Balance, 4,300,000 $4,300 $0 $-4,186
December 31, 1995
Net loss year ended -389
December 31, 1996
Balance, 4,300,000 $4,300 $0 $-4,575
December 31, 1996
Net loss year ended $-939
December 31, 1997
Balance, 4,300,000 $4,300 $0 $-5,514
December 31, 1997
Net Loss January 1, -695
1998 to
June 30, 1998
Balance, 4,300,000 $4,300 $0 $-6,209
June 30, 1998
</TABLE>
FAR EAST VENTURES, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
<TABLE>
<S> <C> <C> <C> <C>
Jan. 1, Year Year Nov. 23, 1993
1998 to Ended Ended (inception)
June 30, Dec. 31, Dec. to June 30,
1998 1997 31, 1998
1996
Cash Flows from Operating
Activities:
Net Loss $-695 $-939 $-389 $-5,624
Adjustment to reconcile
net loss to net cash
provided by operating
activities
Amortization +20 +39 +39 +169
Changes in assets and
Liabilities:
Organization costs $-195
Increase in current $+675 +900 +350 $+1,350
Liabilities
Net cash used in $-4,300
Operating activities
Cash flows from Investing 0 0 0 0
activities
Cash Flows from Financing
Activities:
Issuance of Common Stock 0 0 0 +4,300
Net increase (decrease) $0 $0 $0 $0
In cash
Cash, Beginning of period 0 0 0 0
Cash end of period $0 $0 $0 $0
</TABLE>
FAR EAST VENTURES, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1998, December 31, 1997, and December 31, 1996
NOTE 1 - HISTORY AND ORGANIZATION OF THE COMPANY
Th Company was organized November 23, 1993, under the laws of the
State of Nevada, as Far East Ventures, Inc. The Company
currently has no operations and, in accordance with SFAS #7, is
considered a development stage company.
On November 23, 1993, the Company issued 4,300,000 shares of its
$0.001 par value common stock for $4,300.
NOTE 2- ACCOUNTING POLICIES AND PROCEDURES
Accounting policies and procedures have not been determined
except as follows:
(a) The Company uses the accrual method of accounting.
(b) Earnings per share is computed using the weighted average
number of shares of common stock outstanding.
(c) The Company has not yet adopted any policy regarding payment
of dividends. No dividends have been paid since inception.
(d) Organization costs of $ 195.00, is being amortized over a
period of 60 month period commencing November 23, 1993, to
November 22, 1998.
NOTE 3- GOING CONCERN
The company's financial statements are prepared using the
generally accepted accounting principles applicable to a going
concern, which contemplates the realization of assets and
liquidation of liabilities in the normal course of business.
However, the Company has no current source of revenue. Without
realization of additional capital, it would be unlikely for the
Company to continue as a going concern. It is management's plan
to seek additional capital through a merger with an existing
operating company.
FAR EAST VENTURES, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1998, December 31, 1997, and December 31, 1996
NOTE 4-WARRANTS AND OPTIONS
There are no warrants or options outstanding to acquire any
additional shares of common stock.
NOTE 5-RELATED PARTY TRANSACTION
The Company neither owns or leases any real or personal
property. Office services are provided without charge by a
director. Such costs are immaterial to the financial statements
and, accordingly, have not been reflected therein. The officers
and directors of the Company are involved in other business
opportunities. If a specific business opportunity becomes
available, such persons may face a conflict in selecting between
the Company and their other business interests. The Company has
not formulated a policy for the resolution of such conflicts.
NOTE 6- ADVANCES FROM OFFICERS
While the Company is seeking additional capital through a merger
with an existing operating company, an officer of the Company has
advanced funds on behalf of the Company to pay for any costs
incurred by it. These funds are interests free.
EXHIBITS
3.1 Articles of Incorporation
3.2 By-Laws
SIGNATURES
Pursuant to the requirements of Section 12 of the Securities
Exchange Act of 1934, the Registrant has duly caused this
registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized.
FAR EAST VENTURES, INC.
By:
Lizabeth A. Diller, President
ARTICLES OF INCORPORATION
of
FAR EAST VENTURES, INC.
Know all men by these present;
That the undersigned, have this day voluntarily associated
ourselves together for the purpose of forming a corporation under
and pursuant to the provisions of Nevada Revised Statutes 78.010.
to Nevada Revised Statues 78.090 inclusive, as amended, and
certify that;
1. The name of this corporation is:
Far East Ventures, Inc.
2. Offices for the transaction of any business of the
Corporation, and where meetings of the Board of Directors and of
Stockholders may be held, may be established and maintained in
any part of the State of Nevada, or in any other state,
territory, or possession of the United States.
3. The nature of the business is to engage in any lawful
activity.
4. The Capital Stock shall consist of 50,000,000 shares of
common stock, $0.001 par value.
5. The members of the governing board of the corporation shall
be styled directors, of which there shall be no less than 1. The
Directors of this corporation need not be stockholders. The first
Board of Directors is: Raymond Girard, whose address is 1700 E.
Desert Inn Rd., Suite 100, Las Vegas, NV 89109.
6. This corporation shall have perpetual existence.
7. This Corporation shall have a president, a secretary, a
treasurer, and a resident agent, to be chosen by the Board of
Directors, any person may hold two or more offices.
8. The resident agent of this Corporation shall be Raymond
Girard, 1700 E. Desert Inn Rd., Suite 100, Las Vegas, NV 89109.
9. The Capital Stock of the corporation, after the fixed
consideration thereof has been paid or performed, shall not be
subject to assessment, and the individual liable for the debts
and liabilities of the Corporation, and the Articles of
Incorporation shall never be amended as the aforesaid provisions.
10. No director or officer of the corporation shall be
personally liable to the corporation of any of its stockholders
for damages for breach of fiduciary duty as a director or officer
involving any act or omission of any such director or officer
provided, however, that the foregoing provision shall not
eliminate or limit the liability of a director or officer for
acts or omissions which involve intentional misconduct, fraud or
a knowing violation of law, or the payment of dividends in
violation of Section 78.300 of the Nevada Revised Statutes. Any
repeal or modification of this Article of the Stockholders of the
Corporation shall be prospective only, and shall not adversely
affect any limitation on the personal liability of a director of
officer of the Corporation for acts or omissions prior to such
repeal or modification.
11. Except to the extent limited or denied by Nevada Revised
Statutes 78.265 Shareholders have a preemptive fight to acquire
unissued shares, treasury shares or securities convertible into
such shares, of this corporation.
BY-LAWS
OF
Far East Ventures, Inc.
ARTICLE I - OFFICES
Section 1. Principal Executive Office. The principal office of
the Corporation is hereby fixed in the County of Clark, in the
State of Nevada.
Section 2. Other Offices. Branch or subordinate offices may be
established by the Board of Directors at such other places as may
be desirable.
ARTICLE II - SHAREHOLDERS
Section 1. Place of Meeting. Meetings of shareholders shall be
held either at the principal executive office of the corporation
or at any other location within or without the State of Nevada
which may be designated by written consent of all persons
entitled to vote thereat.
Section 2. Annual Meetings. The annual meeting of shareholders
shall be held on such day and at such time as may be fixed by the
Board; provided, however, that should said day fall upon a
Saturday, Sunday, or legal holiday observed by the Corporation at
its principal executive office, then any such meeting of
shareholders shall be held at the same time and place on the next
day thereafter ensuing which is a full business day. At such
meetings, directors shall be elected by plurality vote and any
other proper business may be transacted.
Section 3. Special Meetings. Special meetings of the shareholders
may be called for any purpose or purposes permitted under Chapter
78 of Nevada Revised Statutes at any time by the Board, the
Chairman of the Board, the President, or by the shareholders
entitled to cast not less than twenty-five percent (25%) of ..the
votes at such meeting. Upon request in writing to the Chair-man
of the Board, the President, any Vice-President or the Secretary,
by any person or persons entitled to call a special meeting of
shareholders, the Secretary shall cause notice to be given to the
shareholders entitled to vote, that a special meeting will be
held not less than thirty five (35) nor more than sixty (60) days
after the date of the notice.
Section 4. Notice of Annual or Special Meetings. Written notice
of each annual meeting of shareholders shall be given not less
than ten (10) nor more than sixty (60) days before the date of
the meeting to each shareholder entitled to vote thereat. Such
notice shall state the place, date and hour of the meeting and
(i) in the case of a special meeting the general nature of the
business to be transacted, or (ii) in the case of the annual
meeting, those matters which the Board, at the time of the
mailing of the notice, intends to present for action by the
shareholders, but, any proper matter may be presented at the
meeting for such action. The notice of any meeting at which
directors are to be elected shall include the names of the
nominees intended, at the time of the notice, to be presented by
management for election.
Notice of a shareholders' meeting shall be given either
personally or by mail or, addressed to the shareholder at the
address of such shareholder appearing on the books of the
corporation or if no such address appears or is given, by
publication at least once in a newspaper of general circulation
in the County of Clark, the State of Nevada. An affidavit of
mailing of any notice, executed by the Secretary, shall be prima
facie evidence of the giving of the notice.
Section 5. Quorum. A majority of the shares entitled to vote,
represented in person or by proxy, shall constitute a quorum at
any meeting of shareholders. If a quorum is present, the
affirmative vote of the majority of shareholders represented and
voting at the meeting on any matter, shall be the act of the
shareholders. The shareholders present at a duly called or held
meeting at which a quorum is present may continue to do business
until adjournment, notwithstanding withdrawal of enough
shareholders to leave less than a quorum, if any action taken
(other than adjournment) is approved by at least a majority of
the number of shares required as noted above to constitute a
quorum. Notwithstanding the foregoing, (1) the sale, transfer and
other disposition of substantially all of the corporations
properties and (2) a merger or consolidation of the corporation
shall require the approval by an affirmative vote of not less
than two-thirds (2/3) of the corporation's issued and outstanding
shares.
Section 6. Adjourned Meeting and Notice Thereof. Any shareholders
meeting, whether or not a quorum is present, may be adjourned
from time to time. In the absence of a quorum (except as provided
in Section 5 of this Article), no other business may be
transacted at such meeting.
It shall not be necessary to give any notice of the time and
place of the adjourned meeting or of the business to be
transacted thereat, other than by announcement at the meeting at
which such adjournment is taken; provided, however when a
shareholders meeting is adjourned for more than forty-five (45)
days or, if after adjournment a new record date is fixed for the
adjourned meeting, notice of the adjourned meeting shall be given
as in the case of an original meeting.
Section 7. Voting. The shareholders entitled to notice of any
meeting or to vote at such, such meeting shall be only persons in
whose name shares stand on the stock records of the corporation
on the record date determined in accordance with Section 8 of
this Article.
Section 8. Record Date. The Board may fix, in advance, a record
date for the determination of the shareholders entitled to notice
of a meeting or to vote or entitled to receive payment of any
dividend or other distribution, or any allotment of rights, or to
exercise rights in respect to any other lawful action. The record
date so fixed shall be not more than sixty (60) nor less than ten
(10) days prior to the date of the meeting nor more than sixty
(60) days prior to any other action. When a record date is so
fixed, only shareholders of record on that date are entitled to
notice of and to vote at the meeting or to receive the dividend,
distribution, or allotment of rights, or to exercise of the
rights,. as the case may be, notwithstanding any transfer of
shares on the books of the corporation after the record date. A
determination of shareholders of record entitled to notice of or
to vote at a meeting of shareholders shall apply to any
adjournment of the meeting unless the Board fixes a new record
date for the meeting. The Board shall fix a new record date if
the meeting is adjourned for more than forty-five (45) days.
If no record date is fixed by the Board, the record date for
determining shareholders entitled to notice of or to vote at a
meeting of shareholders shall be the close of business on the
business day next preceding the day on which notice is given or,
if notice is waived, at the close of business on the business day
next preceding the day on which notice is given. The record date
for determining shareholders for any purpose other than as set in
this Section 8 or Section 10 of this Article shall be at the
close of the day on which the Board adopts the resolution
relating thereto, or the sixtieth day prior to the date of such
other action, whichever is later.
Section 9. Consent of Absentees. The transactions of any meeting
of shareholders, however called and noticed, and wherever held,
are as valid as though had at a meeting duly held after regular
call and notice, if a quorum is present either in person or by
proxy, and 9, either before or after the meeting, each of the
persons entitled to vote not present in person or by proxy, signs
a written waiver of notice, or a consent to the holding of the
meeting or an approval of the minutes thereof. All such waivers,
consents or approvals shall be filed with the corporate records
or made a part of the minutes of the meeting.
Section 10. Action Without Meeting. Any action which, under any
provision of law, may be taken at any annual or special meeting
of shareholders, may be taken without a meeting and without prior
notice if a consent in writing, setting forth the actions to
taken, shall be signed by the holders of outstanding shares
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.
Unless a record date for voting purposes be fixed as provided in
Section 8 of this Article, the record date for determining
shareholders entitled to give consent pursuant to this Section
10, when no prior action by the Board has been taken, shall be
the day on which the first written consent is given.
Section 11. Proxies. Every person entitled to vote shares has the
right to do so either in person or by one or more persons
authorized by a written proxy executed by such shareholder and
filed with the Secretary not less than five (5) days prior to the
meeting.
Section 12. Conduct of Meeting. The President shall preside as
Chairman at all meetings of the shareholders, unless another
Chairman is selected. The Chairman shall conduct each such
meeting in a businesslike and fair manner, but shall not be
obligated to follow any technical, formal or parliamentary rules
or principles of procedure. The Chairman's ruling on procedural
matters shall be conclusive and binding on all shareholders,
unless at the time of ruling a request for a vote is made by the
shareholders entitled to vote and represented in person or by
proxy at the meeting, in which case the decision of a majority of
such shares shall be conclusive and binding on all shareholders
without limiting the generality of the foregoing, the Chairman
shall have all the powers usually vested in the chairman of a
meeting of shareholders.
ARTICLE III - DIRECTORS
Section 1. Power. Subject to limitation of the Articles of
incorporation, of these bylaws, and of actions required to be
approved by the shareholders, the business and affairs of the
corporation shall be managed and all corporate powers shall be
exercised by or under the direction of the Board. The Board may,
as permitted by law, delegate the management of the day-to-day
operation of the business of the corporation to a management
company or other persons or officers of the corporation provided
that the business and affairs of the corporation shall be managed
and all corporate powers shall be exercised under the ultimate
direction of the Board. Without prejudice to such general powers,
it is hereby expressly declared that the Board shall have the
following powers:
(a) To select and remove all of the officers, agents and
employees of the corporation, prescribe the powers and duties for
them as may not be inconsistent with law, or with the Articles of
Incorporation or by these bylaws,. fix their compensation, and
require from them, d necessary, security for faithful service.
(b) To conduct, manage, and control the affairs and business of
the corporation and to make such rules and regulations therefore
not inconsistent with law, with the Articles of Incorporation or
these bylaws, as they may deem best.
(c) To adopt, make and use a corporate seal, and to prescribe
the forms of certificates of stock and to alter the form of such
seal and such of certificates from time to time in their judgment
they deem best.
(d) To authorize the issuance of shares of stock of the
corporation from time to time, upon such terms and for such
consideration as may be lawful.
(e) To borrow money and incur indebtedness for the purposes of
the corporation, and to cause to be executed and delivered
therefor, in the corporate name, promissory notes, bonds,
debentures, deeds of trust, mortgages, pledges, hypothecation or
other evidence of debt and securities therefor.
Section 2. Number and Qualification of Directors. The authorized
number of directors shall be One, if there is only One
Shareholder, if there are more than One Shareholders the minimum
number of Directors shall be Three until changed by amendment of
the Articles or by a bylaw duly adopted by approval of the
outstanding shares amending this Section 2.
Section 3. Election and Term of Office. The directors shall be
elected at each annual meeting of shareholders but if any such
annual meeting is not held or the directors are not elected
thereat, the directors may be elected at any special meeting of
shareholders held for that purpose. Each director shall hold
office until the next annual meeting and until a successor has
been elected and qualified.
Section 4. Chairman of the Board. At the regular meeting of the
Board, the first order of business will be to select, from its
members, a Chairman of the Board whose duties will be to preside
over all board meetings until the next annual meeting and until a
successor has been chosen.
Section 5. Vacancies. Any director may resign effective upon
giving written notice to the Chairman of the Board, the
President, Secretary, or the Board, unless the notice specified a
later time for the effectiveness of such resignation. If the
resignation is effective at a future time, a successor may be
elected to take office when the resignation becomes effective.
Vacancies in the Board including those existing as a result of a
removal of a director, shall be filled by the shareholder at a
special meeting, and each director so elected shall hold office
until the next annual meeting and until such director's successor
has been elected and qualified.
A vacancy or vacancies in the Board shall be deemed to exist in
case of the death, resignation or removal of any director or if
the authorized number of directors be increased, or if the
shareholders fail, at any annual or special meeting of
shareholders at which any directors are elected, to elect the
full authorized number of directors to be voted for the meeting.
The Board may declare vacant the office of a director who has
been declared of unsound mind or convicted of a felony by an
order of court.
The shareholders may elect a director or directors at any time to
fill any vacancy or vacancies. Any such election by written
consent requires the consent of a majority of the outstanding
shares entitled to vote. If the Board accepts the resignation of
a director tendered to take effect at a future time, the
shareholder shall have power to elect a successor to take office
when the resignation is to become effective.
No reduction of the authorized number of directors shall have the
effect of removing any director prior to the expiration of the
director's term of office.
Section 6. Place of Meeting. Any meeting of the Board shall be
held at any place within or without the State of Nevada which has
been designated from time to time by the Board. In the absence of
such designation meetings shall be held at the principal
executive office of the corporation.
Section 7. Regular Meetings. Immediately following each annual
meeting of shareholders the Board shall hold a regular meeting
for the purpose of organization, selection of a Chairman of the
Board, election of officers, and the transaction of other
business. Call and notice. of such regular meeting is hereby
dispensed with.
Section 8. Special Meetings. Special meetings of the Board for
any purposes may be called at any time by the Chairman of the
Board, the President, or the Secretary or by any two directors.
Special meetings of the Board shall be, held upon at least four
(4) days written notice or forty-eight (48) hours notice given
personally or by telephone, telegraph, telex or other similar
means of communication. Any such notice shall be addressed or
delivered to each director at such director's address as it is
shown upon the records of the Corporation or as may have been
given to the Corporation by the director for the purposes of
notice,
Section 9. Quorum. A majority of the authorized number of
directors constitutes a quorum of the Board for the transaction
of business, except to adjourn as hereinafter provided. Every act
or decision done or made by a majority of the directors present
at a meeting duly held at which a quorum is present shall be
regarded as the act of the Board, unless a greater number be
required by law or by the Articles of Incorporation. A meeting at
which a quorum is initially present may continue to transact
business notwithstanding the withdrawal of directors, if any
action taken is approved by at least a majority of the number of
directors required as noted above to constitute a quorum for such
meeting.
Section 10. Participation in Meetings by Conference Telephone.
Members of the Board may participate in a meeting through use of
conference telephone or similar communications equipment, so long
as all members participate in such meeting can hear one another.
Section 11. Waiver of Notice. The transactions of any meeting of
the Board, however called and noticed or wherever held, are as
valid as though had at a meeting duly held after regular call and
notice if a quorum be present and. if, either before or after the
meeting, each of the directors not present signs a written waiver
of notice, a consent to holding such meeting or an approval of
the minutes thereof. All such waivers, consents or approvals
shall be filed with the corporate records or made part of the
minutes of the meeting.
Section 12. Adjournment. A majority of the directors present,
whether or not a quorum is present, may adjourn any directors'
meeting to another time and place. Notice of the time and place
of holding an adjourned meeting need not be given to absent
directors if the time and place be fixed at the meeting
adjourned. If the meeting is adjourned for more than forty-eight
(48) hours, notice of any adjournment to another time or place
shall be given prior to the time of the adjourned meeting to the
directors who were not present at the time of adjournment.
Section 13. Fees and Compensation. Directors and members of
committees may receive such compensation, if any, for their
services, and. such reimbursement for expenses, as may be fixed
or determined by the Board.
Section 14. Action Without Meeting. Any action required or
permitted to be taken by the Board may be taken without a meeting
if all members of the Board shall individually or collectively
consent in writing to such action. Such consent or consents shall
have the same effect as a unanimous vote of the Board and shall
be filed with the minutes of the proceedings of the Board.
Section 15. Committees. The board may appoint one or more
committees, each consisting of two or more directors, and
delegate to such committees any of the authority of the Board
except with respect to:
(a) The approval of any action which requires shareholders'
approval or approval of the outstanding shares;
(b) The filling of vacancies on the Board or on any committees;
(c) The fixing of compensation of the directors for serving on
the Board or on any committee;
(d) The amendment or repeal of bylaws or the adoption of new
bylaws;
(e) The amendment or repeal of any resolution of the Board which
by its express terms is not so amenable or repealable by a
committee of the board;
(g) The appointment of other committees of the Board or the
members thereof.
Any such committee must be appointed by resolution adopted by a
majority of the authorized number of directors and may be
designated an Executive Committee or by such other name as the
Board shall specify. The Board shall have the power to prescribe
the manner in which proceedings of any such committee shall be
conducted. Unless the Board or such committee shall otherwise
provide, the regular or special meetings and other actions of any
such committee shall be governed by the provisions of this
Article applicable to meetings and actions of the Board. Minutes
shall be kept of each meeting of each committee.
ARTICLE IV - OFFICERS
Section 1. Officers. The officers of the corporation shall be a
president, a secretary and a treasurer. The corporation may also
have, at the discretion of the Board, one or more vice-
presidents, one or more assistant vice presidents, one or more
assistant secretaries, one or more assistant treasurers and such
other officers as may be elected or appointed in accordance with
the provisions of Section 3 of this Article.
Section 2. Election. The officers of the corporation, except such
officers as may be elected or appointed in accordance with the
provisions of Section 3 or Section 5 of this Article, shall be
chosen annually by, and shall serve at the pleasure of, the
Board, and shall hold their respective offices until their
resignation, removal or other disqualification from service, or
until their respective successors shall be elected.
Section 3. Subordinate Officers. The Board may elect, and may
empower the President to appoint, such other officers as the
business of the corporation may require, each of whom shall hold
office for such period, have such authority, and perform such
duties as are provided in these bylaws or as the Board, or the
President may from time to time direct.
Section 4. Removal and Resignation. Any officer may be removed,
either with or without cause, by the Board of Directors at any
time, or, except in the case of an officer chosen by the. Board,
by any officer upon whom such power of removal may be conferred
by the Board.
Any officer may resign at any time by giving written notice to
the corporation. Any such resignation shall take effect at the
date of the receipt of such notice or at any later time specified
therein. The acceptance of such resignation shall be necessary to
make it effective.
Section 5. Vacancies. A vacancy of any office because of death,
resignation, removal, disqualification, or any other cause shall
be filled in the manner prescribed by these bylaws for the
regular election or appointment to such office.
Section 6. President. The President shall be the chief executive
officer and general manager of the corporation. The President
shall preside at all meetings of the shareholders and, in the
absence of the Chairman of the Board at all meetings of the
Board. The president has the general powers and duties of
management usually vested in the chief executive officer and the
general manager of a corporation and such other powers and duties
as may be prescribed by the Board.
Section 7. Vice Presidents. In the absence or disability of the
President, the Vice Presidents in order of their rank as fixed by
the Board or, if not ranked, the Vice President designated by the
Board, shall perform all the duties of the President, and when so
acting shall have all the powers of, and be subject to all the
restrictions upon the President. The Vice Presidents shall have
such other powers and perform such other duties as from time to
time may be prescribed for them respectively by the President or
the Board.
Section 8. Secretary. The Secretary shall keep or cause to be
kept, at the principal executive offices and such other place as
the Board may order, a book of minutes of all meetings of
shareholders, the Board, and its committees, with the time and
place of holding, whether regular or special, and, if special,
how authorized, the notice thereof given, the names of those
present at Board and committee meetings, the number of shares
present or represented at shareholders' meetings, and proceedings
thereof. The Secretary shall keep, or cause to be kept, a copy of
the bylaws of the corporation at the principal executive office
of the corporation.
The Secretary shall keep, or cause to be kept, at the principal
executive office, a share register, or a duplicate share
register, showing the names of the shareholders and their
addresses, the number and classes of shares held by each, the
number and date of certificates issued for the same, and the
number and date of cancellation of every certificate surrendered
for cancellation.
The Secretary shall give, or cause to be given, notice of all the
meetings of the shareholders and of the Board and any committees
thereof required by these bylaws or by law to be given, shall
keep the seal of the corporation in safe custody, and shall have
such other powers and perform such other duties as may be
prescribed by the Board.
Section 9. Treasurer. The Treasurer is the chief financial
officer of the corporation and shall keep and maintain, or cause
to be kept and maintained, adequate and correct accounts of the
properties and financial transactions of the corporation, and
shall send or cause to be sent to the shareholders of the
corporation such financial statements and reports as are by law
or these bylaws required to be sent to them.
The Treasurer shall deposit all monies and other valuables in the
name and to the credit of the corporation with such depositories
as may be designated by the Board. The Treasurer shall disburse
the funds of the corporation as may be ordered by the Board,
shall render to the President and directors, whenever they
request it, an account of all transactions as Treasurer and of
the financial conditions of the corporation, and shall have such
other powers and perform such other duties as may be prescribed
by the Board.
Section 10. Agents. The President, any Vice-President, the
Secretary or Treasurer may appoint agents with power and
authority, as defined or limited in their appointment, for and on
behalf of the corporation to execute and deliver, and affix the
seal of the corporation thereto, to bonds, undertakings,
recognizance, consents of surety or other written obligations in
the nature thereof and any said officers may remove any such
agent and revoke the power and authority given to him.
ARTICLE V - OTHER PROVISIONS
Section 1. Dividends. The Board may from time to time declare,
and the corporation may pay, dividends on its outstanding shares
in the manner and on the terms and conditions provided by law,
subject to any contractual restrictions on which the corporation
is then subject.
Section 2. Inspection of By-Laws. The Corporation shall keep in
its Principal Executive Office the original or a copy of these
bylaws as amended to date which shall be open to inspection to
shareholders at all reasonable times during office hours. If the
Principal Executive Office of the Corporation is outside the
State of Nevada and the Corporation has no principal business
office in such State, it shall upon the written notice of any
shareholder furnish to such shareholder a copy of these bylaws as
amended to date.
Section 3. Representation of Shares of Other Corporations. The
President or any other officer or officers authorized by the
Board or the President are each authorized to vote, represent,
and exercise on behalf of the Corporation all rights incident to
any and all shares of any other corporation or corporations
standing in the name of the Corporation. The authority herein
granted may be exercised either by any such officer in person or
by any other person authorized to do so by proxy or power of
attorney duly executed by said officer.
ARTICLE VI - INDEMNIFICATION
Section 1. Indemnification in Actions by Third Parties. Subject
to the limitations of law, if any, the corporation shall have the
power to indemnify any director, officer, employee and agent of
the corporation who was or is a party or is threatened to be made
a party to any proceeding (other than an action by or in the
right of to procure a judgment in its favor) against expenses,
judgments, fines, settlements and other amounts actually and
reasonably incurred in connection with such proceeding, provided
that the Board shall find that the director, officer, employee or
agent acted in good faith and in a manner which such person
reasonably believed in the best interests of the corporation and,
in the case of criminal proceedings, had no reasonable cause to
believe the conduct was unlawful. The termination of any
proceeding by judgment, order, settlement, conviction or upon a
plea of nolo contenders shall not, of itself create a presumption
that such person did not act in good faith and in a manner which
the person reasonably believed to be in the best interests of the
corporation or that such person had reasonable cause to believe
such person's conduct was unlawful.
Section 2. Indemnification in Actions by or on Behalf of
Corporation. Subject to the limitations of law, if any, the
Corporation shall have the power to indemnify any director,
officer, employee and agent of the corporation who was or is
threatened to be made a party to any threatened, pending or
completed legal action by or in the right of the Corporation to
procure a judgment in its favor, against expenses actually and
reasonable incurred by such person in connection with the defense
or settlement, if the Board of Directors determine that such
person acted in good faith, in a manner such person believed to
be in the best interests of the Corporation and with such care,
including reasonable inquiry, as an ordinarily prudent person
would use under similar circumstances.
Section 3. Advance of Expenses. Expenses incurred in defending
any proceeding may be advanced by the Corporation prior to the
final disposition of such proceeding upon receipt of an
undertaking by or on behalf of the officer, director, employee or
agent to repay such amount unless it shall be determined
ultimately that the officer or director is entitled to be
indemnified as authorized by this Article.
Section 4. Insurance. The corporation shall have power to
purchase and maintain insurance on behalf of any officer,
director, employee or agent of the Corporation against any
liability asserted against or incurred by the officer, director,
employee or agent in such capacity or arising out of such
person's status as such whether or not the corporation would have
the power to indemnify the officer, or director, employee or
agent against such liability under the provisions of this
Article.
ARTICLE VII - AMENDMENTS
These bylaws may be altered, amended or repealed either by
approval of a majority of the outstanding shares entitled to vote
or by the approval of the Board; provided however that after the
issuance of shares, a bylaw specifying or changing a fixed number
of directors or the maximum or minimum number or changing from a
fixed to a flexible Board or vice versa may only be adopted by
the approval by an affirmative vote of not less than two-thirds
of the corporation's issued and outstanding shares entitled to
vote.
