UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C., 20549
Form S-8
REGISTRATION STATEMENT
Under
The Securities Act of 1933
Commission file number 000-25415
SUSTAINABLE DEVELOPMENT INTERNATIONAL, INC.
(Exact name of registrant as specified in charter)
Nevada 86-0857752
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
10240 - 124th Street, Suite 208
Edmonton, Alberta, Canada T5N 3W6
(Address of Principal Executive Office) (Zip Code)
Consultant Stock Compensation Plan
(Full Title of the Plan)
(780) 488-9193
(Registrant's Telephone Number, Including Area Code)
<TABLE>
Proposed Proposed
Title of Amount to maximum maximum
Securities to be be Offering aggregate Amount of
registered registered price per offering registration fee
share(2) price
<S> <C> <C> <C> <C>
Common Stock (1) 56,800 1.0625 $60,350 $16.78
</TABLE>
1 Represents up to 56,800 shares of common stock to be offered for
resale by the persons indicated in the prospectus included as part of this
Registration Statement, in addition to the additional shares offered
herein.
2 Calculated in accordance with Rule 457(h)(1) using the 5-day average
of the bid and asked prices for the common stock on December 10, 1999.
<PAGE>
PROSPECTUS The date of this Prospectus is December 15, 1999
SUSTAINABLE DEVELOPMENT INTERNATIONAL, INC.
Up to 56,800 Shares of Common Stock
Received by Directors, Officers, Consultants and Employees
Under the Company's Consultant and Employee Stock
Compensation Plan and Reoffered by Means of this Prospectus
To Be Sold Either Privately or Through a Broker Transaction
Selling shareholders of Sustainable Development International, Inc.
("Company") will offer their shares through the over-the-counter market or
through NASDAQ, if the Company's common stock is then included for
quotation on NASDAQ. Selling shareholders, if control persons, are required
to sell their shares in accordance with the volume limitations of Rule 144
under the Securities Act of 1933, which limits sales by each selling
shareholder in any one month period to the greater of 1% of the total
outstanding common stock (or approximately 13,819 shares after the issuance
of the shares herein) or the average weekly trading volume of the Company's
common stock during the four calendar weeks immediately preceding such
sale. It is expected that brokers and dealers effecting transactions will
be paid the normal and customary commissions for market transactions;
however the Shares may be sold in a private transaction.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION, NOR HAS THE COMMISSION PASSED ON THE ACCURACY OR
THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
No person has been authorized by the Company to give any information or to
make any representation other than as contained in this Prospectus and, if
given or made, such information or representation must not be relied upon
as having been authorized by the Company. Neither the delivery of this
Prospectus nor any distribution of the shares of the Common Stock issuable
under the terms of the Plan shall, under any circumstances, create any
implication that there has been no change in the affairs of the Company
since the date hereof.
This Prospectus does not constitute an offer to sell securities in any
state to any person to whom it is unlawful to make such offer in such
state.
The securities offered hereby involve a high degree of risk. See "Risk
Factors."
<PAGE>
SUMMARY OF PROSPECTUS
The Company
This prospectus accompanies reoffers by consultants and employees of the
Company of shares of common stock received through the Company's Consultant
and Employee Compensation Plan. The Company, pursuant to the S-8
Registration, dated this same date, has registered 56,800 of the Company's
common stock, of which all such shares have been received, concurrent
herewith, pursuant to the Company's Consultant and Employee Compensation
Plan. The Company's principal offices are located at 10240 - 124th Street,
Suite 208, Edmonton, Alberta, Canada, T5N 3W6, telephone number (780) 488-
9193.
RISK FACTORS
The purchase of the securities offered hereby is subject to risk. Investors
should evaluate these risk factors carefully.
Need for Additional Financing. The Company currently operates through cash
generated by loans and the sale of the Company's stock. There is no
assurance that such loans and sale of our stock will continue as it has in
the past, or will increase in the future. In order to succeed the Company
will require additional capital for working capital and for marketing.
There can be no assurance that such financing will be available, when
required, on acceptable terms.
Markets Uncertain. Despite the business experience of the officers,
directors, and principal shareholders of the Company, and the Company's
products there can be no assurance that markets for the Company's products
will develop to be sizable enough to permit the Company to operate
profitably.
Reliance on Management. All decisions with respect to the management of the
Company will be made exclusively by its officers and directors. To a
large extent, the success of the Company will depend upon the quality of
the management provided by its officers and directors.
Dependence upon Key Personnel. The success of the Company will be largely
dependent on the personal efforts of key employees, officers, and
directors, who are responsible for the development of the business of the
Company. If any of the key employees, officers or directors should, for
whatever the reason, cease to serve the Company, the Company may find it
difficult to find replacements within a short time frame, and thus, the
Company's ability to meet its goals could be adversely affected.
PART I
General
Sustainable Development International, Inc., a Nevada corporation (the
"Company") is a development stage company formed in 1998 to commercialize
innovative technologies in the environmental energy from waste, and
alternative power system industries. The Company's goal is to acquire
technology rights and licenses from patent holders and others, then secure
a market, and raise sufficient capital to build, own, and operate
facilities throughout the world.
We have obtained the rights in Germany from Enviro-Mining Inc. for a
process which can produce a high-grade low sulfur diesel fuel meeting
European standards for diesel fuel. The process is an alternative to the
present waste disposal methods by converting automotive waste oil into
light heating oil and high quality diesel fuel.
We have added separate innovations to the processing package to
provide stability to the products, which meet the lower sulphur standards
required in Europe. The Company has combined these technologies under the
operating name of the EMI Process. The objective is to establish the most
appropriate system, which will meet the operating, technical, and business
objectives to be operated by us in Europe.
<PAGE>
Management
<TABLE>
Name Age Title
<S> <C> <C>
Harold Jahn 30 President, CEO, Secretary/Treasurer, Director
Lew Mansell 52 Senior Vice President
Garry R. Knull 52 Chief Financial Officer
</TABLE>
Harold Jahn - President and Chief Executive Officer
Mr. Jahn has served as the Company's Chief Executive Officer, President,
and Chairman of the Board since May 1998. From mid 1995 until present Mr.
Jahn has been president of Enviro-Mining Inc. a company co-founded by Mr.
Jahn as a solution for recycling needs in the tire industry. Its mission
has expanded, developing a broader recycling mandate internationally with
the inclusion of innovative technologies in power generation and mining
equipment worldwide. From July, 1991, to July, 1997, Mr. Jahn was involved
in real estate sales. Mr. Jahn graduated from the University of Alberta
with a BA degree in International Relations and Economics in 1991. His
education contributed to his knowledge of business and government issues,
creativity in problem solving, strengthened concerns for sustainable
development, and managing projects in a timely manner.
Lew Mansell - Senior Vice President
Lew Mansell has served as a Senior Vice President of the Company since
June, 1998. From August, 1995, to June, 1998, Mr. Mansell was the Vice
President of Enviro-Mining, Inc. From 1993 until present Mr. Mansell owned
and operated INVEQ Services, a mortgage brokerage firm. Mr. Mansell
graduated with a B.Sc. in chemistry in 1968, and brings over 25 years of
management skills to this position. His experience includes polymer
research, industrial sales and services in the manufacturing,
petrochemical, and corrosion industry. Since 1978, he has successfully
turned around several Company's implementing new quality control systems,
and production procedures. The marketing and commercialization of
innovative technologies became his focus from 1990.
Garry R. Knull - Chief Financial Officer
Garry R. Knull, CA, has served as Chief Financial Officer of the Company
since June, 1998. From 1979 until present Mr. Knull has been a senior
partner in the accounting firm of Knull, Hales & Chapelsy. He has been
involved in corporate and commercial accounting, auditing and providing
financial and taxation advice to a variety of clients. He is also Chief
Financial Officer of a midsize oilfield manufacturing and supply company.
Legal Proceedings
The Company is not presently a party to any litigation, nor to the
knowledge of management is any litigation threatened against the Company,
which would materially affect the Company.
Submission of Matters to Vote to Shareholders
No matter was submitted to a vote of security holders, through the
solicitation of proxies or otherwise, during the Company's fiscal year
ended October 31, 1999.
Properties.
The Company's main offices are located at 10240 - 124th Street, Suite
208, Edmonton, Alberta, Canada , and its telephone number is (780) 488-
9193, Fax No. (780) 488-9100. The facility is a leased approximately 600
square foot facility utilized for general corporate purposes.
<PAGE>
OFFERING SHAREHOLDERS
The following table lists the shares of Company common stock held by Erin
McNeil, Gordon Noland, Joseph Batty, Andria Monyror, Dabiel Pahl, Ian
Klassen and Donald Stoecklein proposing to sell their shares, the
percentage held by each, and the shares currently proposed to be reoffered
by them pursuant to this Prospectus.
<TABLE>
Shareholder New Shares Percent of Total
Offered After Offering
<S> <C> <C>
Erin McNeill 500 0.00%
Gordon Noland 5,000 0.04%
Joseph Batty 5,000 0.04%
Andria Monyror 5,000 0.04%
Daniel Pahl 10,000 0.07%
Ian Klassen 16,300 0.12%
Donald Stoecklein 15,000 0.11%
TOTAL 56,800
</TABLE>
PART II
Item 3. Information with Respect to the Company
This prospectus is accompanied by the Company's Form 10SB, and its latest
Quarterly Reports filed subsequent thereto, for quarter ending January 31,
1999, 2nd Quarter ending April 30, 1999 and 3rd Quarter July 31, 1999.
These Quarterly and Current Reports, as well as all other reports filed by
the Company pursuant to Sections 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934, are hereby incorporated by reference in
this prospectus and may be obtained upon the oral or written request of any
person to the Company at 10240 - 124th Street, Suite 208, Edmonton,
Alberta, Canada T5N 3W6 telephone number (780) 488-9193.
Incorporation of Documents by Reference.
The registrant incorporates the following documents by reference in this
Registration Statement:
(a) The registrants Form 10SB filed for the year ended July 20, 1999.
(b) The registrants Quarterly Report on Form 10-QSB for the quarter ending
January 31, 1999.
(c) The registrants Quarterly Report on Form 10-QSB for the quarter ending
April 30, 1999.
(d) The registrants Quarterly Report on Form 10-QSB for the quarter ending
July 31, 1999.
Item 4. Description of Securities
General
A description of securities is incorporated by reference from the
registrants Registration Statement on Form 10SB, File No. 000-25409.
<PAGE>
The Company's authorized capitalization is 50,000,000 shares,
consisting of 50,000,000 shares of Common Stock, par value $.001 per share,
of which 13,818,600, (as of December 14, 1999 there were 13,761,800 shares
outstanding) shares will be issued and outstanding after issuance to the
selling shareholders, and the additional shares, referred to in the
preceding section.
Common Stock
Holders of Common Stock are entitled to one vote per share on each
matter submitted to vote at any meeting of shareholders. Shares of Common
Stock do not carry cumulative voting rights and therefore, holders of a
majority of the outstanding shares of Common Stock will be able to elect
the entire board of directors and, if they do so, minority shareholders
would not be able to elect any members to the board of directors. The
Company's board of directors has authority, without action by the Company's
shareholders, to issue all or any portion of the authorized but unissued
shares of Common Stock, which would reduce the percentage ownership of the
Company of its shareholders and which may dilute the book value of the
Common Stock. Shareholders of the Company have no pre-emptive rights to
acquire additional shares of Common Stock. The Common Stock is not subject
to redemption and carries no subscription or conversion rights. In the
event of liquidation of the Company, the shares of Common Stock are
entitled to share equally in corporate assets after satisfaction of all
liabilities. Holders of Common Stock are entitled to receive such dividends
as the board of directors may from time to time declare out of funds
legally available for the payment of dividends. The Company has not paid
dividends on its Common Stock and does not anticipate that it will pay
dividends in the foreseeable future.
Item 5. Interests of Named Experts and Counsel
NA
Item 6. Indemnification
The Articles of Incorporation for the Company do contain provisions
for indemnification of the officers and directors; in addition, Section
78.751 of the Nevada General Corporation Laws provides as follows:
78.751 Indemnification of officers, directors, employees and agents;
advance of expenses.
1. A corporation may 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, except 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, against expenses,
including attorney's fees, judgments, fines and amounts paid in settlement
actually and reasonably incurred by him in connection with the action, suit
or proceeding if he acted in good faith and in a manner which 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. The termination of any action,
suit or proceeding by judgment, order, settlement, conviction, or upon a
plea of nolo contendere or its equivalent, does not, of itself, create a
presumption that the person did not act in good faith and in a manner which
he reasonably believed to be in or not opposed to the best interests of the
corporation, and that, with respect to any criminal action or proceeding,
he had reasonable cause to believe that his conduct was unlawful.
2. A corporation may 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 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 against
expenses, including amounts paid in settlement and attorneys' fees actually
and reasonably incurred by him in connection with the defense or settlement
of the action or suit if he acted in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the
corporation. Indemnification may not be made for any claim, issue or
matter as to which such a person has been adjudged by a court of competent
jurisdiction, after exhaustion of all appeals therefrom, to be liable to
the corporation or for amounts paid in settlement to the corporation,
unless and only to the extent that the court in which the action or suit
was brought or other court of competent jurisdiction determines upon
application that in view of all the circumstances of the case, the person
is fairly and reasonably entitled to indemnity for such expenses as the
court deems proper.
<PAGE>
3. To the extent that a director, officer, employee or agent of a
corporation has been successful on the merits or otherwise in defense of
any action, suit or proceeding referred to in subsections 1 and 2, or in
defense of any claim, issue or matter therein, he must be indemnified by
the corporation against expenses, including attorneys' fees, actually and
reasonably incurred by him in connection with the defense.
4. Any indemnification under subsections 1 and 2, unless ordered by
a court or advanced pursuant to subsection 5, must be made by the
corporation only as authorized in the specific case upon a determination
that indemnification of the director, officer, employee or agent is proper
in the circumstances. The determination must be made:
(a) By the stockholders:
(b) By the board of directors by majority vote of a quorum consisting o
directors who were not parties to act, suit or proceeding;
(c) If a majority vote of a quorum consisting of directors who were not
parties to the act, suit or proceeding so orders, by independent legal
counsel in a written opinion; or
(d) If a quorum consisting of directors who were not parties to the act,
suit or proceeding cannot to obtained, by independent legal counsel in a
written opinion; or
5. The articles of incorporation, the bylaws or an agreement made by
the corporation may provide that the expenses of officers and directors
incurred in defending a civil or criminal, suit or proceeding must be paid
by the corporation as they are incurred and in advance of the final
disposition of the action, suit or proceeding, upon receipt of an
undertaking by or on behalf of the director or officer to repay the amount
if it is ultimately determined by a court of competent jurisdiction that he
is not entitled to be indemnified by corporation. The provisions of this
subsection do not affect any rights to advancement of expenses to which
corporate personnel other than the directors or officers may be entitled
under any contract or otherwise by law.
6. The indemnification and advancement of expenses authorized in or
ordered by a court pursuant to this section:
a) Does not exclude any other rights to which a person seeking
indemnification or advancement of expenses may be entitled under the
articles of incorporation or any bylaw, agreement, vote of stockholders or
disinterested directors or otherwise, for either an action in his official
capacity or an action in another capacity while holding his office, except
that indemnification, unless ordered by a court pursuant to subsection 2 or
for the advancement of expenses made pursuant to subsection 5, may not be
made to or on behalf of any director or officer if a final adjudication
establishes that his act or omissions involved intentional misconduct,
fraud or a knowing violation of the law and was material to the cause of
action.
(b) Continues for a person who has ceased to be a director, officer,
employee or agent and inures to the benefit of the heirs, executors and
administrators of such a person.
Item 7. Exemption From Registration Claimed.
All of the shares were exempt from the registration requirements of
the Securities Act of 1933 as amended by virtue of Section 4(2) thereof
covering transactions not involving any public offering or not involving
any "offer" or "sale".
Item 8. Exhibits.
3.1 Articles of Incorporation of registrant(1).
3.2 Bylaws (2).
5 Opinion of Donald J. Stoecklein, Attorney-at-law, regarding legality
of shares being issued (3).
10 Consultant Stock Compensation Plan/Consultants Agreements (3).
__________________________________________
(1) Incorporated by reference from the registrants Registration Statement
on Form 10SB, File No. 000-25409;
(2) Incorporated by reference from the registrants Registration Statement
on Form 10SB, File No. 000-25409;
(3) Filed herewith.
Item 9. Undertakings.
The undersigned registrant hereby undertakes:
<PAGE>
(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, including (but not limited to) any
addition or election of a managing underwriter.
(2) That, for the purpose of determining any liability under the Securities
Act of 1933, 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 offered 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.
The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of
the Company's annual report pursuant to Section 13(a) or 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
referring 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.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the Company pursuant to the foregoing provisions, or
otherwise, the Company 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 (other than
the payment by the Company 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 Company will, unless
in the opinion of its counsel that matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question
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.
SIGNATURES
Pursuant to 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 for filing on Form S-8 and has duly caused
this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Las Vegas, State of Nevada, on
this 14th day of December, 1999.
SUSTAINABLE DEVELOPMENT INTERNATIONAL, INC.
By :/s/ Harold Jahn
Harold Jahn, President
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons in the
capacities indicated on December 14, 1999.
Signature Title Date
/s/ Harold Jahn President, Director December 15, 1999
Harold Jahn
/s/ Lew Mansell Senior Vice President December 15, 1999
Lew Mansell
<PAGE>
EXHIBIT 5
Opinion and Consent of
Donald J. Stoecklein
<PAGE>
ATTORNEY AT LAW
Telephone (702) 794-2590
Facsimile (702) 794-0744
DONALD J. STOECKLEIN
Practice Limited to Federal Securities
- --------------------------------------------------------------------------------
1850 E. Flamingo Rd., Suite #111, Las Vegas, Nevada 89119
December 15, 1999
Harold Jahn
President
SUSTAINABLE DEVELOPMENT INTERNATIONAL, INC.
10240 - 124th Street, Suite 208
Edmonton, Alberta, Canada
RE: REGISTRATION STATEMENT ON FORM S-8
Dear Mr. Jahn:
You have requested our opinion as to the legality of the registration by
you, Sustainable Development International, Inc. (the "Corporation") of up
to 56,800 shares of Common Stock ( the "shares") pursuant to a Registration
Statement, dated December 14, 1999, on Form S-8 ( the "Registration
Statement") to be filed on December 14, 1999:
As your counsel we have reviewed and examined:
1. The Articles of Incorporation of the Corporation, as amended (the
"Articles");
2. The Bylaws of the Corporation, as certified by the Secretary of the
Corporation;
3. The Resolutions of the corporation authorizing the registration;
4. The minute book of the Corporation;
5. The Corporation's 10SB filed July 20, 1999;
6. The Corporation's 10-QSB for first quarter 1999;
7. The Corporation's 10-QSB for second quarter 1999;
8. The Corporation's 10-QSB for third quarter 1999;
9. The Consultant and Employee Stock Compensation Plan; and
10. Such other matters as we have deemed relevant in order to form our
opinion.
In giving our opinion, we have assumed without investigation the
authenticity of any document or instrument submitted to us as an original,
the conformity to the original of any document or instrument submitted to
us as a copy, and the genuineness of all signatures on such originals or
copies.
Based upon the foregoing, and subject to the qualifications set forth
below, we are of the opinion that the Shares, if issued and sold as
described in the Registration Statement (provided that at least par value
is paid for the shares): (i) will have been duly authorized, legally
issued, fully paid and nonassessable, (ii) when issued will be a valid and
binding obligation of the corporation, and (iii) do not require a permit
from any governmental agency.
Our opinion is subject to the qualification that no opinion is expressed
herein as to the application of the state securities or Blue-Sky laws.
<PAGE>
This Opinion is furnished by us as counsel to you and is solely for your
benefit. Neither this opinion nor copies hereof may be relied upon by,
delivered to, or quoted in whole or in part to any governmental agency or
other person without our prior written consent.
Notwithstanding the above, we consent to the use of our opinion in regards
to the Request to Transfer Agent for transfer of the above referred to
shares.
Yours Very Truly,
s/Donald J. Stoecklein
Donald J. Stoecklein
s8opin.899
<PAGE>
EXHIBIT 10
CONSULTANT AND EMPLOYEE STOCK OPTION PLAN
<PAGE>
EMPLOYEE STOCK COMPENSATION PLAN
Sustainable Development International, Inc.
I.
Purpose of the Plan.
The purpose of this Plan is to further the growth of Sustainable
Development International, Inc. ("Sustainable") by allowing the Company
to compensate officers, directors, consultants and certain other persons
providing bona fide services to the Company or to compensate officers,
directors and employees for accrual of salary, through the award of
Sustainable's common stock.
II.
Definitions
Whenever used in this Plan, the following terms shall have the meanings set
forth in this Section:
1. "Award" means any grant of Common Stock made under this Plan.
2. "Board of Directors" means the Board of Directors of Sustainable.
3. "Code" means the Internal Revenue Code of 1986, as amended.
4. "Common Stock" means the common stock, par value $ .001 per share, of
Sustainable.
5. "Date of Grant" means the day the Board of Directors authorizes the
grant of an Award or such later date as may be specified by the Board of
Directors as the date a particular Award will become effective.
6. "Employee" means any person or entity that renders bona fide services to
the Company (including, without limitation, the following: a person
employed by the Company in a key capacity; an officer or director of
Sustainable or one or more Subsidiaries; a person or company engaged by the
Company as a consultant; or a lawyer, law firm, accountant or accounting
firm.
7. "Subsidiary" means any corporation that is a subsidiary with regard to
Sustainable as that term is defined in Section 424(f) of the Code.
III.
Effective Date of the Plan
The effective date of this Amended Plan is December 14, 1999.
IV.
Administration of the Plan
The Board of Directors will be responsible for the administration of this
Plan, and will grant Awards under this Plan. Subject to the express
provisions of this Plan, the Board of Directors shall have full authority
and sole and absolute discretion to interpret this Plan, to prescribe,
amend and rescind rules and regulations relating to it, and to make all
other determinations which it believes to be necessary or advisable in
administering this Plan. The determinations of the Board of Directors on
the matters referred to in this Section shall be conclusive. The Board of
Directors shall have sole and absolute discretion to amend this Plan. No
member of the Board of Directors shall be liable for any act or omission in
connection with the administration of this Plan unless it resulted from the
member's willful misconduct.
<PAGE>
V.
Stock Subject to the Plan
The maximum number of shares of Common Stock as to which Awards may be
granted under this Plan as of this date and subject to subsequent amendment
is 500,000 shares. The Common Stock which is issued on grant of awards may
be authorized but unissued shares or shares which have been issued and
reacquired by Sustainable. The Board of Directors may increase the maximum
number of shares of Common Stock as to which Awards may be granted at such
time as it deems advisable.
VI.
Persons Eligible to Receive Awards
Awards may be granted only to Employees, or Consultants of the Company, in
their individual capacity only.
VII.
Grants of Awards
Except as otherwise provided herein, the Board of Directors shall have
complete discretion to determine when and to which Employees or Consultants
Awards are to be granted, and the number of shares of Common Stock as to
which awards granted to each Employee or consultant will relate. No grant
will be made if, in the judgment of the Board of Directors, such a grant
would constitute a public distribution within the meaning of the Securities
Act of 1933, as amended (the "Act"), or the rules and regulations
promulgated thereunder. The Board of Directors upon approval of the
issuance of shares pursuant to this plan shall provide as an exhibit, the
party to whom shares are issued, and the number of shares issued.
VIII.
Delivery of Stock Certificates
As promptly as practicable after authorizing the grant of an Award
Sustainable shall deliver to the person who is the recipient of the Award,
a certificate or certificates registered in that person's name,
representing the number of shares of Common Stock that were granted.
IX.
Employment
Nothing in this Plan or in the grant of an Award shall confer upon any
Employee or consultant the right to continue in the employ of the Company
nor shall it interfere with or restrict in any way the rights of the
Company to discharge any employee at any time for any reason whatsoever,
with or without cause.
X.
Laws and Regulations
The obligation of Sustainable to sell and deliver shares of Common Stock on
the grant of an Award under this Plan shall be subject to the condition
that counsel for Sustainable be satisfied that the sale and delivery
thereof will not violate the Act or any other applicable laws, rules or
regulations.
XI.
Withholding of Taxes
If subject to withholding tax, the Company shall be authorized to withhold
from an Employer's salary or other cash compensation such sums of money as
are necessary to pay the Employee's withholding tax. The Company may elect
to withhold from the shares to be issued hereunder a sufficient number of
shares to satisfy the Company's withholding obligations. If the Company
becomes required to pay withholding tax to any federal, state or other
taxing authority as a result of the granting of an Award and the Employee
fails to provide the Company with the funds with which to pay that
withholding tax, the Company may withhold up to 50% of each payment of
salary or bonus to the Employee (which will be in addition to any other
required or permitted withholding), until the Company has been reimbursed
for the entire withholding tax it was required to pay.
<PAGE>
XII.
Reservation of Shares
Sustainable shall at all times keep reserved for issuance on grant of
awards under this Plan a number of authorized but unissued or reacquired
shares of Common Stock equal to the maximum number of shares Sustainable
may be required to be issued on the grant of Awards under this Plan.
XII.
Termination of the Plan
The Board of Directors may suspend or terminate this Plan at any time or
from time to time, but no such action shall adversely affect the rights of
a person granted an Award under this Plan prior to that date.
XIV.
Delivery of Plan
A Copy of this Plan shall be delivered to all participants, together with a
copy of the resolution or resolutions of the Board of Directors authorizing
the granting of the Award and establishing the terms, if any, of
participation.
No dealer, salesman, or any other person has been authorized by the Company
to give any information or to make any representations other than those
contained in this Prospectus in connection with the offering made hereby,
and if given or made, such information or representations must not be
relied upon. This Prospectus does not constitute an offer to sell or the
solicitation of an offer to buy any securities other than those
specifically offered hereby or an offer to sell, or a solicitation of an
offer to buy, to any person in any jurisdiction in which such offer or sale
would be unlawful. Neither the delivery of this Prospectus nor any sale
made hereunder shall under any circumstances create any implication that
there has been no change in the affairs of the Company since any of the
dates as of which information is furnished or since the date of this
Prospectus.
/s/ Harold Jahn President, Director December 15, 1999
Harold Jahn
