U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-SB
General Form for Registration of Securities of Small Business Issuers
Under Section 12(b) or (g) of the Securities Exchange Act of 1934
TAC ASSET CORP.
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(Name of Small Business Issuer)
Nevada 88-0448314
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(State or Other Jurisdiction of I.R.S. Employer
Incorporation or Organization) Identification Number
1850 East Flamingo Road, Suite Ill
Las Vegas, Nevada 89119
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(Address of Principal Executive Offices including Zip Code)
702-866-5839
(Issuer's Telephone Number)
Securities to be Registered Under Section 12(b) of the Act:
None
Securities to be Registered Under Section 12(g) of the Act:
Common Stock
$.001 Par Value
(Title of Class)
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PART I
ITEM 1. BUSINESS.
FORWARD LOOKING STATEMENTS
In this registration statement references to "Tac Asset Corp.," "we,"
"us," and "our" refer to TAC ASSET CORP.
This Form 10-SB contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. For this
purpose any statements contained in this Form 10-SB that are not statements
of historical fact may be deemed to be forward-looking statements. Without
limiting the foregoing, words such as "may," "will," "expect," "believe,"
"anticipate," "estimate" or "continue" or comparable terminology are
intended to identify forward-looking statements. These statements by their
nature involve substantial risks and uncertainties, and actual results may
differ materially depending on a variety of factors, many of which are not
within Tac asset corp.' control. These factors include but are not limited
to economic conditions generally and in the industries in which Tac asset
corp. may participate; competition within Tac asset corp.' chosen industry,
including competition from much larger competitors; technological advances
and failure by Tac Asset Corp. to successfully develop business
relationships.
DESCRIPTION OF BUSINESS
Business Development
Tac Asset Corp. was incorporated on January 18, 2000 in the state of
Nevada, to engage in any lawful corporate undertaking, including, but not
limited to, selected mergers and acquisitions. We have been in the
development stage since inception. Tac Asset Corp. has not engaged in any
commercial operations. Tac Asset Corp. does not have active business
operations, and at this time we are considered a "Blank Check" company.
We will attempt to locate and negotiate with a business entity for
purposes of combining the target company with us. The combination will
normally take the form of a merger, stock-for-stock exchange or
stock-for-assets exchange. In most instances the target company will wish to
structure the business combination to be within the definition of a tax-free
reorganization under Section 351 or Section 368 of the Internal Revenue Code
of 1986, as amended. No assurances can be given that we will be successful
in locating or negotiating with any target company.
Our search for a business opportunity will not be limited to any
particular geographical area or industry. Our management has unrestricted
discretion in seeking and participating in a business opportunity, subject
to the availability of such opportunities, economic conditions and other
factors. Our management believes that companies who desire a public market
to enhance liquidity for current stockholders, plan to raise capital through
the public sale of securities or plan to acquire additional assets through
issuance of securities rather than for cash will be potential merger or
acquisition candidates.
The selection of a business opportunity in which to participate is
complex and extremely risky and will be made by management in the exercise
of its business judgment. There is no assurance that we will be able to
identify and acquire any business opportunity which will ultimately prove to
be beneficial to our stockholders and us.
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Our activities are subject to several significant risks, which arise
primarily as a result of the fact that we have no specific business and may
acquire or participate in a business opportunity based on the decision of
management which will, in all probability, act without consent, vote, or
approval of our stockholders.
Perceived Benefits
There are certain perceived benefits to being a reporting company with
a class of publicly traded securities. These are commonly thought to include
the following:
* the ability to use registered securities to make acquisitions of assets
or businesses;
* increased visibility in the financial community;
* the facilitation of borrowing from financial institutions;
* improved trading efficiency;
* stockholder liquidity;
* greater ease in subsequently raising capital;
* compensation of key employees through stock options for which there may
be a market valuation;
* enhanced corporate image;
* a presence in the United States capital market.
Potential Target Companies
A business entity, if any, which may be interested in a business
combination with us, may include the following:
* a company for which a primary purpose of becoming public is the use of
its securities for the acquisition of assets or businesses;
* a company which is unable to find an underwriter of its securities or
is unable to find an underwriter of securities on terms acceptable to it;
* a company which wishes to become public with less dilution of its
common stock than would occur upon an underwriting;
* a company which believes that it will be able to obtain investment
capital on more favorable terms after it has become public;
* a foreign company which may be seeking an initial entry into the United
States securities market;
* a special situation company, such as a company seeking a public market
to satisfy redemption requirements under a qualified Employee Stock Option
Plan;
* a company seeking one or more of the other perceived benefits of
becoming a public company.
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A business combination with a target company will normally involve the
transfer to the target company of the majority of our issued and outstanding
common stock, and the substitution by the target company of its own
management and board of directors.
No assurances can be given that we will be able to enter into a
business combination, as to the terms of a business combination, or as to
the nature of the target company.
We are voluntarily filing this Registration Statement with the
Securities and Exchange Commission and are under no obligation to do so
under the Securities Exchange Act of 1934.
RISK FACTORS
Our business is subject to numerous risk factors, including the
following:
No Operating History or Revenue and Minimal Assets. We have had no
operating history and have not had any revenues or earnings from operations.
We have had no significant assets or financial resources. We will, in all
likelihood, sustain operating expenses without corresponding revenues, at
least until the consummation of a business combination. This may result in
incurring a net operating loss, which will increase continuously until we
can consummate a business combination with a target company. There is no
assurance that we can identify such a target company and consummate such a
business combination.
Speculative Nature of Our Proposed Operations. The success of our
proposed plan of operation will depend to a great extent on the operations,
financial condition and management of the identified target company. While
management will prefer business combinations with entities having
established operating histories, there can be no assurance that we will be
successful in locating candidates meeting such criteria. In the event that
we complete a business combination, of which there can be no assurance, the
success of our operations will be dependent upon management of the target
company and numerous other factors beyond our control.
Scarcity of and Competition for Business Opportunities and
Combinations. We are and will continue to be an insignificant participant in
the business of seeking mergers with and acquisitions of business entities.
A large number of established and well-financed entities, including venture
capital firms, are active in mergers and acquisitions of companies, which
may be merger or acquisition target candidates for us. Nearly all such
entities have significantly greater financial resources, technical expertise
and managerial capabilities than we do and, consequently, we will be at a
competitive disadvantage in identifying possible business opportunities and
successfully completing a business combination. Moreover, we will also
compete with numerous other small public companies in seeking merger or
acquisition candidates.
Impracticability of Exhaustive Investigation. Our limited funds and the
lack of full-time management will likely make it impracticable to conduct a
complete and exhaustive investigation and analysis of a target company. The
decision to enter into a business combination, therefore, will likely be
made without detailed feasibility studies, independent analysis, market
surveys or similar information which, if we had more funds available to us,
would be desirable. We will be particularly dependent in making decisions
upon information provided by the principals and advisors associated with the
business entity seeking our participation.
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No Agreement for Business Combination or Other Transaction--No
Standards for Business Combination. We have no current arrangement,
agreement or understanding with respect to engaging in a business
combination with a specific entity. There can be no assurance that we will
be successful in identifying and evaluating suitable business opportunities
or in concluding a business combination. Management has not identified any
particular industry or specific business within an industry for evaluation
by us. There is no assurance that we will be able to negotiate a business
combination on terms favorable to us. We have not established a specific
length of operating history or a specified level of earnings, assets, net
worth or other criteria, which we will require a target company to have
achieved, or without which we would not consider a business combination with
such business entity. Accordingly, we may enter into a business combination
with a business entity having no significant operating history, losses,
limited or no potential for immediate earnings, limited assets, negative net
worth or other negative characteristics.
Continued Management Control, Limited Time Availability. While seeking
a business combination, management anticipates devoting only a limited
amount of time per month to our business. Our sole officer has not entered
into a written employment agreement with us and he is not expected to do so
in the foreseeable future. We have not obtained key man life insurance on
our officer and director. Notwithstanding the combined limited experience
and time commitment of management, loss of the services of this individual
would adversely affect development of our business and our likelihood of
continuing operations.
Conflicts of Interest--General. Our officer and director participates
in other business ventures, which may compete directly with us. Additional
conflicts of interest and non-arms length transactions may also arise in the
future. Management has adopted a policy that we will not seek a business
combination with any entity in which any member of management serves as an
officer, director or partner, or in which they or their family members own
or hold more than 10% ownership interest.
Reporting Requirements May Delay or Preclude Acquisition. Section 13
of the Securities Exchange Act of 1934 (the "Exchange Act") requires
companies subject thereto to provide certain information about significant
acquisitions including audited financial statements for the company acquired
covering one or two years, depending on the relative size of the
acquisition. The time and additional costs that may be incurred by some
target companies to prepare such financial statements may significantly
delay or essentially preclude consummation of an otherwise desirable
acquisition by us. Acquisition prospects that do not have or are unable to
obtain the required audited statements may not be appropriate for
acquisition so long as the reporting requirements of the Exchange Act are
applicable.
Lack of Market Research or Marketing Organization. We have neither
conducted, nor have others made available to us, market research indicating
that demand exists for the transactions contemplated by us. Even in the
event demand exists for a transaction of the type contemplated by us, there
is no assurance that we will be successful in completing any such business
combination.
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Lack of Diversification. Our proposed operations, even if successful,
will in all likelihood result in our engaging in a business combination with
only one target company. Consequently, our activities will be limited to
those engaged in by the business entity which we merge with or acquire. Our
inability to diversify our activities into a number of areas may subject us
to economic fluctuations within a particular business or industry and
therefore increase the risks associated with our operations.
Regulation Under Investment Company Act. Although we will be subject to
regulation under the Exchange Act, management believes we will not be
subject to regulation under the Investment Company Act of 1940, insofar as
we will not be engaged in the business of investing or trading in
securities. In the event we engage in business combinations, which result in
our holding passive investment interests in a number of entities, we could
be subject to regulation under the Investment Company Act of 1940. In such
event, we would be required to register as an investment company and could
be expected to incur significant registration and compliance costs. We have
obtained no formal determination from the Securities and Exchange Commission
as to our status under the Investment Company Act of 1940 and, consequently,
any violation of such Act could subject us to material adverse consequences.
Probable Change In Control and Management. A business combination
involving the issuance of our common stock will, in all likelihood, result
in stockholders of a target company obtaining a controlling interest in us.
Any such business combination may require our stockholders to sell or
transfer all or a portion of our common stock held by them. The resulting
change in control will likely result in removal of our present officer and
director and a corresponding reduction in or elimination of his
participation in our future affairs.
Reduction of Percentage Share Ownership Following Business Combination
of The Company. Our primary plan of operation is based upon a business
combination with a business entity, which, in all likelihood, will result in
our issuing securities to stockholders of such business entity. The issuance
of our previously authorized and unissued common stock would result in
reduction in percentage of shares owned by our present stockholders and
would most likely result in a change in control or management.
Taxation. Federal and state tax consequences will, in all likelihood,
be major considerations in any business combination we may undertake.
Currently, such transactions may be structured so as to result in tax-free
treatment to both companies, pursuant to various federal and state tax
provisions. We intend to structure any business combination so as to
minimize the federal and state tax consequences to the target company and
us; however, there can be no assurance that such business combination will
meet the statutory requirements of a tax-free reorganization or that the
parties will obtain the intended tax-free treatment upon a transfer of stock
or assets. A non-qualifying reorganization could result in the imposition of
both federal and state taxes, which may have an adverse effect on both
parties to the transaction.
Possible Reliance Upon Unaudited Financial Statements. We will require
audited financial statements from any business entity that we propose to
acquire. No assurance can be given, however, that audited financials will be
available to us prior to a business combination. In cases where audited
financials are unavailable, we will have to rely upon unaudited information
that has not been verified by outside auditors in making our decision to
engage in a transaction with the business entity. The lack of the type of
independent verification which audited financial statements would provide in
evaluating a transaction with a target company increases our risk.
Additionally we will not have the benefit of full and accurate information
about the financial condition and operating history of the target company.
This risk increases the prospect that a business combination with such a
business entity might prove to be an unfavorable one for us.
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Computer Systems Redesigned for Year 2000. Many existing computer
programs use only two digits to identify a year in such program's date
field. These programs were designed and developed without consideration of
the impact of the change in the century for which four digits will be
required to accurately report the date. If not corrected, many computer
applications could fail or create erroneous results by or following the year
2000 ("Year 2000 Problem"). The companies or governments operating such
programs may not have corrected many of the computer programs containing
such date language problems. It is impossible to predict what computer
programs will be affected, the impact any such computer disruption will have
on other industries or commerce, or the severity or duration of a computer
disruption.
We do not have operations and do not maintain computer systems.
Before we enter into any business combination, we may inquire as to the
status of any target company's Year 2000 Problem, the steps such target
company has taken or intends to take to correct any such problem and the
probable impact on such target company of any computer disruption. However,
there can be no assurance that we will not enter into a business combination
with a target company that has an uncorrected Year 2000 Problem or that any
planned Year 2000 Problem corrections will be sufficient. The extent of the
Year 2000 Problem of a target company may be impossible to ascertain and any
impact on us will likely be impossible to predict.
ITEM 2. PLAN OF OPERATION.
We intend to enter into a business combination with a target company in
exchange for our securities. As of the initial filing date of this
Registration Statement, neither our officer and director nor any affiliate
has engaged in any negotiations with any representative of any specific
entity regarding the possibility of a business combination with us.
Management anticipates seeking out a target company through
solicitation. Such solicitation may include newspaper or magazine
advertisements, mailings and other distributions to law firms, accounting
firms, investment bankers, financial advisors and similar persons, the use
of one or more World Wide web sites and similar methods. No estimate can be
made as to the number of persons who will be contacted or solicited.
Management may engage in such solicitation directly or may employ one or
more other entities to conduct or assist in such solicitation. Management
and its affiliates may pay referral fees to consultants and others who refer
target businesses for mergers into public companies in which management and
its affiliates have an interest. Payments are made if a business combination
occurs, and may consist of cash or a portion of our stock retained by
management and its affiliates, or both.
Our management has entered into a verbal agreement with the law firm of
Sperry Young & Stoecklein, to supervise the search for target companies as
potential candidates for a business combination. Sperry Young & Stoecklein,
will receive legal fees in consideration of its agreement to provide such
services. Sperry Young & Stoecklein will pay as its own expenses any costs
it incurs in supervising the search for a target company. Sperry Young, &
Stoecklein is not authorized to enter into any agreement binding us, which
can only be done by action of our officer, director and stockholders, as may
be required. Sperry Young & Stoecklein is an affiliate of our management. It
is anticipated that Sperry Young and Stoecklein will receive attorney's fees
in connection with our merger upon determining a merger candidate.
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We have no full time employees. Our president has agreed to allocate a
portion of his time to our activities, without compensation. The president
anticipates that our business plan can be implemented by his devoting no
more than 10 hours per month to our business affairs and, consequently,
conflicts of interest may arise with respect to the limited time commitment
by such officer.
Management is currently involved with other blank check companies, and
is involved in creating additional blank check companies similar to this
one. A conflict may arise in the event that another blank check company with
which management is affiliated is formed and actively seeks a target
company. Management anticipates that target companies will be located for us
and other blank check companies in chronological order of the date of
formation of such blank check companies or, in the case of blank check
companies formed on the same date, alphabetically. However, other blank
check companies with which management is or may be affiliated may differ
from us in certain items such as place of incorporation, number of shares
and stockholders, working capital, types of authorized securities, or other
items. It may be that a target company may be more suitable for or may
prefer a certain blank check company formed after we were. In such case, a
business combination might be negotiated on behalf of the more suitable or
preferred blank check company regardless of date of formation.
Our Articles of Incorporation provide that we may indemnify our
officers and/or directors for our liabilities, which can include liabilities
arising under the securities laws. Therefore, our assets could be used or
attached to satisfy any liabilities subject to such indemnification.
General Business Plan
Our purpose is to seek, investigate and, if such investigation
warrants, acquire an interest in a business entity, which desires to seek
the perceived advantages of a corporation, which has a class of securities
registered under the Exchange Act. We will not restrict our search to any
specific business, industry, or geographical location and we may participate
in a business venture of virtually any kind or nature. Management
anticipates that it will be able to participate in only one potential
business venture because we have nominal assets and limited financial
resources. This lack of diversification should be considered a substantial
risk to our stockholders because it will not permit us to offset potential
losses from one venture against gains from another.
We may seek a business opportunity with entities which have recently
commenced operations, or which wish to utilize the public marketplace in
order to raise additional capital in order to expand into new products or
markets, to develop a new product or service, or for other corporate
purposes.
We anticipate that the selection of a business opportunity in which to
participate will be complex and extremely risky. Management believes (but
has not conducted any research to confirm) that there are business entities
seeking the perceived benefits of a publicly registered corporation. Such
perceived benefits may include facilitating or improving the terms on which
additional equity financing may be sought, providing liquidity for incentive
stock options or similar benefits to key employees, increasing the
opportunity to use securities for acquisitions, providing liquidity for
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stockholders and other factors. Business opportunities may be available 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 difficult and complex.
We have, and will continue to have, no capital with which to provide
the owners of business entities with any cash or other assets. However,
management believes we will be able to offer owners of acquisition
candidates the opportunity to acquire a controlling ownership interest in a
public company without incurring the cost and time required to conduct an
initial public offering. Management has not conducted market research and is
not aware of statistical data to support the perceived benefits of a
business combination for the owners of a target company.
The analysis of new business opportunities will be undertaken by, or
under the supervision of, our officer and director, who is not a
professional business analyst. In analyzing prospective business
opportunities, management may consider such matters as the available
technical, financial and managerial resources; working capital and other
financial requirements; history of operations, if any; prospects for the
future; nature of 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 our proposed activities; 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. This discussion of the proposed criteria is not meant to
be restrictive of our virtually unlimited discretion to search for and enter
into potential business opportunities.
The Exchange Act requires that any merger or acquisition candidate
comply with certain reporting requirements, which include providing audited
financial statements to be included in the reporting filings made under the
Exchange Act. We will not acquire or merge with any company for which
audited financial statements cannot be obtained at or within the required
period of time after closing of the proposed transaction.
We may enter into a business combination with a business entity that
desires to establish a public trading market for its shares. A target
company may attempt to avoid what it deems to be adverse consequences of
undertaking its own public offering by seeking a business combination with
us. Such consequences may include, but are not limited to, time delays of
the registration process, significant expenses to be incurred in such an
offering, loss of voting control to public stockholders or the inability to
obtain an underwriter or to obtain an underwriter on satisfactory terms.
We will not restrict our search for any specific kind of business
entities, 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 business life. It is impossible to predict at this time the
status of any business in which we may become engaged, in that such business
may need to seek additional capital, may desire to have its shares publicly
traded, or may seek other perceived advantages which we may offer.
Our management, which in all likelihood will not be experienced in
matters relating to the business of a target company, will rely upon its own
efforts in accomplishing our business purposes. Following a business
combination we may benefit from the services of others in regard to
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accounting, legal services, underwriting and corporate public relations. If
requested by a target company, management may recommend one or more
underwriters, financial advisors, accountants, public relations firms or
other consultants to provide such services.
A potential target company may have an agreement with a consultant or
advisor providing that services of the consultant or advisor be continued
after any business combination. Additionally, a target company may be
presented to us only on the condition that the services of a consultant or
advisor are continued after a merger or acquisition. Such preexisting
agreements of target companies for the continuation of the services of
attorneys, accountants, advisors or consultants could be a factor in the
selection of a target company.
Acquisition of Opportunities
In implementing a structure for a particular business acquisition, we
may become a party to a merger, consolidation, reorganization, joint
venture, or licensing agreement with another corporation or entity. On the
consummation of a transaction, it is likely that the present management and
our stockholders will no longer be in our control. In addition, it is likely
that our officer and director will, as part of the terms of the acquisition
transaction, resign and be replaced by one or more new officers and
directors.
It is anticipated that any securities issued in any such reorganization
would be issued in reliance upon exemption from registration under
applicable federal and state securities laws. In some circumstances,
however, as a negotiated element of our transaction, we may agree to
register all or a part of such securities immediately after the transaction
is consummated or at specified times thereafter. If such registration
occurs, it will be undertaken by the surviving entity after we have entered
into an agreement for a business combination or have consummated a business
combination and we are no longer considered a blank check company. The
issuance of additional securities and their potential sale into any trading
market which may develop in our securities may depress the market value of
the our securities in the future if such a market develops, of which there
is no assurance.
While the terms of a business transaction to which we may be a party
cannot be predicted, it is expected that the parties to the business
transaction will desire to avoid the creation of a taxable event and thereby
structure the acquisition in a tax-free reorganization under Sections 351 or
368 of the Internal Revenue Code of 1986, as amended.
With respect to negotiations with a target company, management expects
to focus on the percentage of the Company which target company stockholders
would acquire in exchange for their stockholdings in the target company.
Depending upon, among other things, the target company's assets and
liabilities, our stockholders will in all likelihood hold a substantially
lesser percentage ownership interest in the Company following any merger or
acquisition. The percentage of ownership may be subject to significant
reduction in the event we acquire a target company with substantial assets.
Any merger or acquisition effected by us can be expected to have a
significant dilutive effect on the percentage of shares held by our
stockholders at such time.
We will participate in a business opportunity only after the
negotiation and execution of appropriate agreements. Although the terms of
such agreements cannot be predicted, generally such agreements will require
certain representations and warranties of the parties thereto, will specify
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certain events of default, will detail the terms of closing and the
conditions which must be satisfied by the parties prior to and after such
closing and will include miscellaneous other terms.
We will not enter into a business combination with any entity, which
cannot provide audited financial statements at or within the required period
of time after closing of the proposed transaction. We are subject to all of
the reporting requirements included in the Exchange Act. Included in these
requirements is our duty to file audited financial statements as part of or
within 60 days following the due date for filing our Form 8-K which is
required to be filed with the Securities and Exchange Commission within 15
days following the completion of the business combination. If such audited
financial statements are not available at closing, or within time parameters
necessary to insure our compliance with the requirements of the Exchange
Act, or if the audited financial statements provided do not conform to the
representations made by the target company, the closing documents may
provide that the proposed transaction will be voidable at the discretion of
our present management.
Management has orally agreed that it will advance to us any additional
funds, which we need for operating capital and for costs in connection with
searching for or completing an acquisition or merger. Such advances will be
made without expectation of repayment. There is no minimum or maximum amount
management will advance to us. We will not borrow any funds to make any
payments to our management, its affiliates or associates.
The Board of Directors has passed a resolution which contains a policy
that the we will not seek a business combination with any entity in which
our officer, director, stockholders or any affiliate or associate serves as
an officer or director or holds an ownership interest greater than ten
percent (10%).
Undertakings and Understandings Required of Target Companies
As part of a business combination agreement, we intend to obtain
certain representations and warranties from a target company as to its
conduct following the business combination. Such representations and
warranties may include (i) the agreement of the target company to make all
necessary filings and to take all other steps necessary to remain a
reporting company under the Exchange Act (ii) imposing certain restrictions
on the timing and amount of the issuance of additional free-trading stock,
including stock registered on Form S-8 or issued pursuant to Regulation S
and (iii) giving assurances of ongoing compliance with the Securities Act,
the Exchange Act, the General Rules and Regulations of the Securities and
Exchange Commission, and other applicable laws, rules and regulations.
A prospective target company should be aware that the market price
and volume of its securities, when and if listed for secondary trading, may
depend in great measure upon the willingness and efforts of successor
management to encourage interest in the Company within the United States
financial community. We do not have the market support of an underwriter
that would normally follow a public offering of our securities. Initial
market makers are likely to simply post bid and asked prices and are
unlikely to take positions in our securities for their own account or
customers without active encouragement and a basis for doing so. In
addition, certain market makers may take short positions in our securities,
which may result in a significant pressure on the market price of our
securities. We may consider the ability and commitment of a target company
to actively encourage interest in its securities following a business
combination in deciding whether to enter into a transaction with such
company.
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A business combination with us separates the process of becoming a
public company from the raising of investment capital. As a result, a
business combination with us normally will not be a beneficial transaction
for a target company whose primary reason for becoming a public company is
the immediate infusion of capital. We may require assurances from the target
company that it has or that it has a reasonable belief that it will have
sufficient sources of capital to continue operations following the business
combination. However, it is possible that a target company may give such
assurances in error, or that the basis for such belief may change as a
result of circumstances beyond the control of the target company.
Prior to completion of a business combination, we may generally
require that we be provided with written materials regarding the target
company containing such items as a description of products, services and
company history; management resumes; financial information; available
projections, with related assumptions upon which they are based; an
explanation of proprietary products and services; evidence of existing
patents, trademarks, or service marks, or rights thereto; present and
proposed forms of compensation to management; a description of transactions
between such company and its affiliates during relevant periods; a
description of present and required facilities; an analysis of risks and
competitive conditions; a financial plan of operation and estimated capital
requirements; audited financial statements, or if they are not available,
unaudited financial statements, together with reasonable assurances that
audited financial statements would be able to be produced within a
reasonable period of time not to exceed 75 days following completion of a
business combination; and other information deemed relevant.
Competition
We will remain an insignificant participant among the firms, which
engage in the acquisition of business opportunities. There are many
established venture capital and financial firms which have significantly
greater financial and personnel resources and technical expertise than we
do. In view of our combined extremely limited financial resources and
limited management availability, we will continue to be at a significant
competitive disadvantage compared to our competitors.
ITEM 3. DESCRIPTION OF PROPERTY.
We have no properties and at this time have no agreements to acquire
any properties. We currently use the offices of management at no cost to us.
Management has agreed to continue this arrangement until we complete an
acquisition or merger.
ITEM 4.SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
The following table sets forth each person known by us to be the
beneficial owner of five percent or more of our Common Stock, all directors
individually and all directors and officers as a group. Except as noted,
each person has sole voting and investment power with respect to the shares
shown.
<PAGE>
<TABLE>
Name and Address Amount of Beneficial Percentage
of Beneficial Owner Ownership of Class
<S> <C> <C>
Anthony DeMint 5,000,000 100%
241 Paradise Bird St.
Henderson, NV 89014
</TABLE>
ITEM 5. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS.
The Company has one Director and officer as follows:
<TABLE>
Name Age Positions and Offices Held
<S> <C> <C>
Anthony N. DeMint 26 President, Secretary, Treasurer, Director
</TABLE>
There are no agreements or understandings for the officer or director
to resign at the request of another person and the above-named officer and
director is not acting on behalf of nor will act at the direction of any
other person.
Set forth below is the name of our director and officer, all positions
and offices held, the period during which he has served as such, and the
business experience during at least the last five years:
Anthony N. DeMint acts as President, Secretary, Treasurer and Director
for the Company. Mr. DeMint has served as an officer and Director of the
Company since inception. Mr. DeMint is also sole officer and Director of
Intercontinental Capital Fund, Inc., Navitec Group, Inc, TourPro Golf, Inc.,
Royal Acquisitions, Inc., Calif Acquisitions Inc., Accessory Specialists
Incorporated, RUB Investments Limited, Your Domain.com and Nothing Corp.
which are also blank check companies. Since 1994, Mr. DeMint has been a
business consultant and has served on the board of directors and as an
officer for several private and public companies. Mr. DeMint currently
serves as President and as a Director of Securities Law Institute a
securities consulting firm. From 1997-1998, Mr. DeMint was Vice President of
operations and a Director for Worldwide Golf Resources, Inc. From 1995-1997,
Mr. DeMint was Chief Operating Officer, Treasurer and a Director of a
publicly held import and wholesale company, Cutty-Fleet Trading Co., where
he managed day-to-day operations. Mr. DeMint attended Business and Economics
school at the University of Nevada Las Vegas. Mr. DeMint is an affiliate of
the law firm of Sperry Young & Stoecklein.
Previous And Current Blank Check Companies
The SEC reporting blank check companies that Anthony DeMint serves as
President and Director are listed in the following table:
<TABLE>
Date
Incorporation Name Form Type File # of Filing Status(l)
<S> <C> <C> <C> <C>
Intercontinental
Capital Fund, Inc.(2a) 10SB12G 000-27931 04 Nov 99 No
Navitec Group Inc. (2b) 10SB12G 000-28225 22 Nov 99 No
Tele Special.Com (2c) 10SB12G 000-28207 19 Nov 99 Merger
TourPro Golf, Inc. (2d) 10SB12G 000-28569 20 Dec 99 No
Royal Acquisitions, Inc. (2e) 10SB12G 000-28713 30 Dec 99 No
Calif Acquisitions, Inc. (3) 10SB12G
Accessory Specialists Inc.(3) 10SB12G
Rub Investments Limited (3) 10SB12G
Your Domain.com (3) 10SB12G
Nothing Corp. (3) 10SB12G
</TABLE>
<PAGE>
(1) Under Merger Status "Merger" represents either a merger or an
acquisition has occurred or the company ceased to be a blank check
company by operating specific business a "No" represents that the
company is currently seeking merger or acquisition candidate. More
detailed information for each merger is disclosed in following
paragraphs.
(2) (2a) The SEC has no additional comments as of the date of this filing
and has granted effectiveness on November 15, 1999. (2b) The SEC has no
additional comments as of the date of this filing and has granted
effectiveness on December 10, 1999.(2c) The SEC has no additional comments
as of the date of this filing and has granted effectiveness on December 3,
1999.(2d) The SEC has no additional comments as of the date of this filing
and has granted effectiveness on December 27, 1999. (2e) The SEC has no
additional comments as of the date of this filing and has granted
effectiveness on January 18, 2000.
(3) 10SB12G to be filed with the SEC before February 4, 2000.
In January 2000 Tele Special.Com merged with International Brands, Inc.
("INBR") whereby INBR was the surviving corporation and Tele Special.COM
ceased too exist. INBR is a holding company for various Internet related
companies. Pursuant to the Plan of Merger, INBR issued 25,000 shares of
restricted Common Stock to Anthony N. DeMint in exchange for the
cancellation of Mr. DeMint's 5,000,000 shares of Tele Special.Com Common
Stock. INBR paid $150,000 in cash to Sperry Young & Stoecklein, of which
Anthony N. DeMint is an affiliate, for legal fees associated with the
merger. Mr. DeMint currently is a non-affiliated stockholder of INBR.
INBR is currently a SEC reporting company under 12(g) of the Securities
and Exchange Act of 1934.
Conflicts of Interest
Our officer and director may organize other companies of a similar
nature and with a similar purpose as us. Consequently, there are potential
inherent conflicts of interest in acting as our officer and director.
Insofar as the officer and director are engaged in other business
activities, management anticipates that he will devote only a minor amount
of time to our affairs. We do not have a right of first refusal pertaining
to opportunities that come to management's attention insofar as such
opportunities may relate to our proposed business operations.
A conflict may arise in the event that another blank check company with
which management is affiliated is formed and actively seeks a target
company. It is anticipated that target companies will be located for us and
other blank check companies in chronological order of the date of formation
of such blank check companies or, in the case of blank check companies
formed on the same date, alphabetically. However, any blank check companies
with which management is, or may be, affiliated may differ from us in
<PAGE>
certain items such as place of incorporation, number of shares and
stockholders, working capital, types of authorized securities, or other
items. It may be that a target company may be more suitable for or may
prefer a certain blank check company formed after us. In such case, a
business combination might be negotiated on behalf of the more suitable or
preferred blank check company regardless of date of formation.
Mr. DeMint may have demands placed on his time, which will detract from
the amount of time he is able to devote to us. Mr. DeMint intends to devote
as much time to our activities as required. However, should such a conflict
arise, there is no assurance that Mr. DeMint would not attend to other
matters prior to ours. Mr. DeMint projects that initially up to ten hours
per month of his time may be spent locating a target company which amount of
time would increase when the analysis of, and negotiations and consummation
with, a target company are conducted.
The terms of business combination may include such terms as are
negotiated by Mr. DeMint, remaining a director or officer of the Company,
and/or the consulting firm retained by management. The terms of a business
combination may provide for a payment by cash or otherwise to Mr. DeMint for
the purchase or retirement of all or part of his common stock by a target
company or for services rendered incident to or following a business
combination. Mr. DeMint would directly benefit from such employment or
payment. Such benefits may influence Mr. DeMint's choice of a target
company.
We may agree to pay finder's fees, as appropriate and allowed, to
unaffiliated persons who may bring a target company to us where that
referral results in a business combination. No finder's fee of any kind will
be paid by us to management or our promoters or to there associates or
affiliates. No loans of any type have, or will be, made by us to management
or our promoters of or to any of their associates or affiliates.
We will not enter into a business combination, or acquire any assets of
any kind for our securities, in which our management or any affiliates or
associates have a greater than 10% interest, direct or indirect.
There are no binding guidelines or procedures for resolving potential
conflicts of interest. Failure by management to resolve conflicts of
interest in favor of us could result in liability of management to us.
However, any attempt by stockholders to enforce a liability of management to
us would most likely be prohibitively expensive and time consuming.
Investment Company Act of 1940
Although we will be subject to regulation under the Securities Act of
1933 and the Securities Exchange Act of 1934, management believes the we
will not be subject to regulation under the Investment company Act of 1940
insofar as we will not be engaged in the business of investing or trading in
securities. In the event we engage in business combinations which result in
us holding passive investment interests in a number of entities we could be
subject to regulation under the Investment Company Act of 1940. In such
event, we would be required to register as an investment company and could
be expected to incur significant registration and compliance costs. We have
obtained no formal determination from the Securities and Exchange Commission
as to our status under the Investment Company Act of 1940. Any violation of
such Act would subject us to material adverse consequences.
<PAGE>
ITEM 6. EXECUTIVE COMPENSATION.
Our officer and director does not receive any compensation for his
services rendered to us, has not received such compensation in the past, and
is not accruing any compensation pursuant to any agreement with us. However,
our officer and director anticipates receiving benefits as a beneficial
stockholder of the company and, possibly, in other ways.
We have not adopted any retirement, pension, profit sharing, stock
option or insurance programs or other similar programs for the benefit of
our officer or director.
ITEM 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
We have issued a total of 5,000,000 shares of Common Stock to the
following person for a total of $5,000 in services:
<TABLE>
Name Number of Total Shares Consideration
<S> <C> <C>
Anthony N. DeMint 5,000,000 $5000
</TABLE>
Anthony N. DeMint is the President, Secretary, Treasurer, and sole
Director for the Company. The total number of shares were issued to Mr.
DeMint in exchange for services rendered to the Company, in lieu of cash.
ITEM 8. DESCRIPTION OF SECURITIES.
Our authorized capital stock consists of 20,000,000 shares of Common
Stock, par value $.001 per share, of which 5,000,000 shares are outstanding.
We have authorized 5,000,0000 shares of Preferred Stock, par value $.001 per
share of which there are no shares outstanding. The following statements
relating to the capital stock set forth the material terms of our
securities; however, reference is made to the more detailed provisions of,
and such statements are qualified in their entirety by reference to, the
Articles of Incorporation and the Bylaws, copies of which are filed as
exhibits to this registration statement.
Common Stock
Holders of shares of common stock are entitled to one vote for each
share on all matters to be voted on by the stockholders. Holders of common
stock do not have cumulative voting rights. Holders of common stock are
entitled to share ratably in dividends, if any, as may be declared from time
to time by the Board of Directors in its discretion from funds legally
available therefore. In the event of our liquidation, dissolution or winding
up, the holders of common stock are entitled to share pro rata all assets
remaining after payment in full of all liabilities. All of the outstanding
shares of common stock are fully paid and non-assessable.
Holders of common stock have no preemptive rights to purchase our
common stock. There are no conversion or redemption rights or sinking fund
provisions with respect to the common stock.
PREFERRED STOCK
The Board of Directors is authorized to provide for the issuance of
shares of preferred stock in series and, by filing a certificate if
applicable, pursuant to the applicable law of Nevada, to establish from time
to time the number of shares to be included in each such series, and to fix
the designation, powers, preferences and rights of the shares of each such
<PAGE>
series and the qualifications, limitations or restrictions thereof without
any further vote or action by the stockholders. Any shares of preferred
stock so issued would have priority over the common stock with respect to
dividend or liquidation rights. Any future issuance of preferred stock may
have the effect of delaying, deferring or preventing a change in our control
of without further action by the stockholders and may adversely affect the
voting and other rights of the holders of common stock. At present, we have
no plans to issue any preferred stock nor adopt any series, preferences or
other classification of preferred stock.
The issuance of shares of preferred stock, or the issuance of rights to
purchase such shares, could be used to discourage an unsolicited acquisition
proposal. For instance, the issuance of a series of preferred stock might
impede a business combination by including class voting rights that would
enable the holder to block such a transaction, or facilitate a business
combination by including voting rights that would provide a required
percentage vote of the stockholders. In addition, under certain
circumstances, the issuance of preferred stock could adversely affect the
voting power of the holders of the common stock. Although the Board of
Directors is required to make any determination to issue such stock based on
its judgment as to the best interests of the our stockholders, the Board of
Directors could act in a manner that would discourage an acquisition attempt
or other transaction that some, or a majority, of the stockholders might
believe to be in their best interests or in which stockholders might receive
a premium for their stock over the then market price of such stock. The
Board of Directors does not at present intend to seek stockholder approval
prior to any issuance of currently authorized stock, unless otherwise
required by law or stock exchange rules. We have no present plans to issue
any preferred stock.
Dividends
Dividends, if any, will be contingent upon our revenues and earnings,
if any, capital requirements and financial conditions. The payment of
dividends, if any, will be within the discretion of our Board of Directors.
We presently intend to retain all earnings, if any, for use in our business
operations and accordingly, the Board of Directors does not anticipate
declaring any dividends prior to a business combination.
Trading of Securities in Secondary Market
The National Securities Market Improvement Act of 1996 limited the
authority of states to impose restrictions upon sales of securities made
pursuant to Sections 4(1) and 4(3) of the Securities Act of companies which
file reports under Sections 13 or 15(d) of the Exchange Act. Upon
effectiveness of this Registration Statement, we will be required to, and
will, file reports under Section 13 of the Exchange Act. As a result, sales
of our common stock in the secondary market by the holders thereof may then
be made pursuant to Section 4(l) of the Securities Act (sales other than by
an issuer, underwriter or broker).
Following a business combination, a target company will normally wish
to list our common stock for trading in one or more United States markets.
The target company may elect to apply for such listing immediately following
the business combination or at some later time.
<PAGE>
In order to qualify for listing on the NASDAQ SmallCap Market, a
company must have at least (i) net tangible assets of $4,000,000 or market
capitalization of $50,000,000 or net income for two of the last three years
of $750,000; (ii) public float of 1,000,000 shares with a market value of
$5,000,000; (iii) a bid price of $4.00; (iv) three market makers; (v) 300
stockholders and (vi) an operating history of one year or, if less than one
year, $50,000,000 in market capitalization. For continued listing on the
NASDAQ SmallCap Market, a company must have at least (i) net tangible assets
of $2,000,000 or market capitalization of $35,000,000 or net income for two
of the last three years of $500,000; (ii) a public float of 500,000 shares
with a market value of $1,000,000; (iii) a bid price of $1.00; (iv) two
market makers; and (v) 300 stockholders.
If, after a business combination, we do not meet the qualifications
for listing on the NASDAQ SmallCap Market, we may apply for quotation of our
securities on the NASD Over-The-Counter Bulletin Board. In certain cases we
may elect to have our securities initially quoted in the "pink sheets"
published by the National Quotation Bureau, Inc.
Transfer Agent
It is anticipated that we will act as our own transfer agent for our
common stock.
GLOSSARY
"Blank Check" Company As defined in Section 7(b)(3) of the
Securities Act, a "blank check" company
is a development stage company that has
no specific business plan or purpose or
has indicated that its business plan is
to engage in a merger or acquisition with
an unidentified company or companies and
is issuing "penny stock" securities as
defined in Rule 3a51-1 of the Exchange
Act.
Business Combination Normally a merger, stock-for-stock
exchange or stock-for-assets exchange
between the Registrant and a target
company.
The Company or the Registrant. The corporation whose common stock is the
subject of this Registration Statement.
Exchange Act The Securities Exchange Act
of 1934, as amended.
"Penny Stock" Security As defined in Rule 3a51-1 of the Exchange
Act, a "penny stock" security is any
equity security other than a security (i)
that is a reported security (ii) that is
issued by an investment company (iii)
that is a put or call issued by the
option Clearing Corporation (iv) that has
a price of $5.00 or more (except for
purposes of Rule 419 of the Securities
Act) (v) that is registered on a national
securities exchange (vi) that is
authorized for quotation on the NASDAQ
Stock Market, unless other provisions of
Rule 3a51-1 are not satisfied, or (vii)
that is issued by an issuer with (a) net
tangible assets in excess of $2,000,000,
if in continuous operation for more than
three years or $5,000,000 if in operation
for less than three years or (b) average
revenue of at least $6,000,000 for the
last three years.
<PAGE>
Securities Act The Securities Act of 1933, as amended.
PART II
ITEM 1. MARKET PRICE FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
(A) Market Price. There is no trading market for our Common Stock at
present and there has been no trading market to date. There is no assurance
that a trading market will ever develop or, if such a market does develop,
that it will continue.
The Securities and Exchange Commission has adopted Rule 15g-9, which
establishes the definition of a "penny stock," for purposes relevant to the
company, as any equity security that has a market price of less than $5.00
per share or with an exercise price of less than $5.00 per share, subject to
certain exceptions. For any transaction involving a penny stock, unless
exempt, the rules require: (i) that a broker or dealer approve a person's
account for transactions in penny stocks and (ii) the broker or dealer
receive from the investor a written agreement to the transaction, setting
forth the identity and quantity of the penny stock to be purchased. In order
to approve a person's account for transactions in penny stocks, the broker
or dealer must (i) obtain financial information and investment experience
and objectives of the person; and (ii) make a reasonable determination that
the transactions in penny stocks are suitable for that person and that
person has sufficient knowledge and experience in financial matters to be
capable of evaluating the risks of transactions in penny stocks. The broker
or dealer must also deliver, prior to any transaction in a penny stock, a
disclosure schedule prepared by the Commission relating to the penny stock
market, which, in highlight form, (i) sets forth the basis on which the
broker or dealer made the suitability determination and (ii) that the broker
or dealer received a signed, written agreement from the investor prior to
the transaction. Disclosure also has to be made about the risks of investing
in penny stocks in both public offerings and in secondary trading, and about
commissions payable to both the broker-dealer and the registered
representative, current quotations for the securities and the rights and
remedies available to an investor in cases of fraud in penny stock
transactions. Finally, monthly statements have to be sent disclosing recent
price information for the penny stock held in the account and information on
the limited market in penny stocks.
(B) Holders. There is one holder of our Common Stock. The issued and
outstanding shares of our Common Stock were issued in accordance with the
exemptions from registration afforded by Section 4(2) of the Securities Act
of 1933 promulgated there under.
(C) Dividends. We have not paid any dividends to date, and have no
plans to do so in the immediate future.
ITEM 2. LEGAL PROCEEDINGS.
There is no litigation pending or threatened by or against us.
<PAGE>
ITEM 3.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
We have not changed accountants since our formation and there are no
disagreements with the findings of our accountants.
ITEM 4. RECENT SALES OF UNREGISTERED SECURITIES.
Since inception, we have not sold any securities.
ITEM 5. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Pursuant to Nevada Revised Statutes Section 78.7502 and 78.751 our
Articles of Incorporation and bylaws provide for the indemnification of
present and former directors and officers and each person who serves at our
request as our officer or director. Indemnification for a director is
mandatory and indemnification for an officer, agent or employee is
permissive. We will indemnify such individuals against all costs, expenses
and liabilities incurred in a threatened, pending or completed action, suit
or proceeding brought because such individual is our director or officer.
Such individual must have conducted himself in good faith and reasonably
believed that his conduct was in, or not opposed to, our best interest. In a
criminal action he must not have had a reasonable cause to believe his
conduct was unlawful. This right of indemnification shall not exclusive of
other rights the individual is entitled to as a matter of law or otherwise.
We will not indemnify an individual adjudged liable due to his
negligence or willful misconduct toward us, adjudged liable to us, or if he
improperly received personal benefit. Indemnification in a derivative action
is limited to reasonable expenses incurred in connection with the
proceeding. Also, we are authorized to purchase insurance on behalf of an
individual for liabilities incurred whether or not we would have the power
or obligation to indemnify him pursuant to our bylaws.
Our bylaws provide that individuals may receive advances for expenses if
the individual provides a written affirmation of his good faith belief that
he has met the appropriate standards of conduct and he will repay the
advance if he is judged not to have met the standard of conduct.
Insofar as indemnification for liabilities arising under the securities act
of 1933, as amended, may be permitted to directors, officers or persons
controlling the company pursuant to the foregoing provisions, it is the
opinion of the Securities and Exchange Commission that such indemnification
is against public policy as expressed in the act and is therefore
unenforceable.
<PAGE>
PART F/S
FINANCIAL STATEMENTS.
Set forth below are our audited financial statements from inception
January 18, 2000 and ending January 20, 2000. The following financial
statements are attached to this report and filed as a part thereof.
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITORS' REPORT F-1
BALANCE SHEET F-2
STATEMENT OF OPERATIONS F-3
STATEMENT OF STOCKHOLDERS' EQUITY F-4
STATEMENT OF CASH FLOWS F-5
NOTES TO FINANCIAL STATEMENTS F-6-F-7
<PAGE>
BARRY L. FRIEDMAN, P.C.
Certified Public Accountant
1582 TULITA DRIVE OFFICE (702) 361-8414
LAS VEGAS, NEVADA 89123 FAX NO. (702) 896-0278
INDEPENDENT AUDITORS' REPORT
Board Of Directors January 21, 2000
Tac Asset Corp.
Las Vegas, Nevada
I have audited the Balance Sheet of Tac Asset Corp., (A Development
Stage Company), as of January 20, 2000, and the related Statements of
Operations, Stockholders' Equity and Cash Flows for the period January 18,
2000, (inception) to January 20, 2000. 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 I 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 Tac Asset Corp.,
(A Development Stage Company), at January 20, 2000, and the results of its
operations and cash flows for the period January 18, 2000, (inception) to
January 20, 2000, 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 the outcome of this uncertainty.
/s/ Barry Friedman
Barry L. Friedman
Certified Public Accountant
<PAGE>
<TABLE>
TAC ASSET CORP.
(A Development Stage Company)
January 20, 2000
BALANCE SHEET
ASSETS
<S> <C>
CURRENT ASSETS $ 0
-------------------
TOTAL CURRENT ASSETS $ 0
-------------------
OTHER ASSETS $ 0
-------------------
TOTAL OTHER ASSETS $ 0
-------------------
TOTAL ASSETS $ 0
===========
</TABLE>
<TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
CURRENT LIABILITIES
Officers Advances (Note #6) $ 1,167
------------------
TOTAL CURRENT LIABILITIES $ 1,167
------------------
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value
authorized 5,000,000 shares
issued and outstanding at
January 20, 2000-None $ 0
Common stock, $.001 par value,
authorized 20,000,000 shares;
issued and outstanding at
January 20, 2000-5,000,000 shares $ 5,000
Additional paid-in capital 0
Deficit accumulated during
development stage (6,167)
-------------------
TOTAL STOCKHOLDER'S EQUITY $ (1,167)
-------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 0
============
</TABLE>
The accompanying notes are an integral part of these financial statements
<PAGE>
<TABLE>
TAC ASSET CORP.
(A Development Stage Company)
January 18, 2000,(Inception) to January 20, 2000
STATEMENT OF OPERATIONS
<S> <C>
INCOME
Revenue $ 0
--------------------
EXPENSE
General and
Administrative $ 5,885
Organization Cost Expense 282
--------------------
TOTAL EXPENSES $ 6,167
--------------------
NET LOSS $ (6,167)
============
Net Loss
Per Share $ (.0012)
============
Weighted average
number of common
shares outstanding 5,000,000
=============
</TABLE>
The accompanying notes are an integral part of these financial statements
<PAGE>
<TABLE>
TAC ASSET CORP.
(A Development Stage Company)
STATEMENT OF STOCKHOLDERS' EQUITY
Deficit
accumulated
Additional during
Common Stock paid-in development
Capital stage
Shares Amount
---------- -------- ----------- ------------
<S> <C> <C> <C> <C>
January 18, 2000
issued for services 5,000,000 $5,000 $0 $0
Net loss, January
18, 2000 (inception)
to January 20, 2000 (6,167)
---------- -------- ----------- ------------
Balance,
January 20, 2000 5,000,000 $5,000 $0 $(6,167)
======== ======== ========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements
<PAGE>
<TABLE>
TAC ASSET CORP.
(A Development Stage Company)
January 18, 2000,(Inception) to January 20, 2000
STATEMENT OF CASH FLOWS
<S> <C>
Cash Flows from
Operating Activities
Net loss $ (6,167)
Amortization 282
Issue common stock for services 5,000
Changes in assets and
Liabilities
Officers Advances 1,167
---------------------
Net cash used in
operating activities $ 282
Cash Flows from
Investing Activities 0
Organization Costs (282)
Cash Flows from
Financing Activities 0
------------------------
Net increase in cash $ 0
Cash,
beginning of period 0
-----------------------
Cash,
end of period $ 0
==============
</TABLE>
The accompanying notes are an integral part of these financial statements
<PAGE>
TAC ASSET CORP.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
January 20, 2000
NOTE 1 - HISTORY AND ORGANIZATION OF THE COMPANY
The Company was organized January 18, 2000, under the laws of the State
of Nevada, as Tac Asset Corp. The Company currently has no operations and,
in accordance with SFAS #7, is considered a development stage company.
On January 18, 2000, the Company issued 5,000,000 shares of its $.001
par value common stock for services of $5,000.
NOTE 2 - ACCOUNTING POLICIES AND PROCEDURES
Accounting policies and procedures have not been determined except as
follows:
1. The Company uses the accrual method of accounting.
2. Earnings per share is computed using the weighted average number
of common shares outstanding.
3. The Company has not yet adopted any policy regarding payment of
dividends. No dividends have been paid since inception.
4. In April 1998, the American Institute of Certified Public
Accountant's issued Statement of Position 98-5 ("SOP 98-511), Reporting on
the Costs of Start-Up Activities" which provides guidance on the financial
reporting of start-up costs and organization costs. It requires costs of
start-up activities and organization costs to be expensed as incurred. SOP
98-5 is effective for fiscal years beginning after December 15, 1998, with
initial adoption reported as the cumulative effect of a change in accounting
principle. With the adoption of SOP 98-5, there has been little or no effect
on the Company's financial statements.
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
<PAGE>
TAC ASSET CORP.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS CONTINUED
January 20, 2000
NOTE 4 - 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 activities and may, in the future, become 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 5 - WARRANTS AND OPTIONS
There are no warrants or options outstanding to issue any additional
shares of common or preferred stock of the Company.
NOTE 6 - OFFICERS ADVANCES
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 interest free.
<PAGE>
PART III
ITEM 1. INDEX TO EXHIBITS.
Exhibit
Number Description
(3)(i) Articles of Incorporation
(a) Articles of Incorporation
(3)(ii) Bylaws
(a) Bylaws
(4) Instrument defining the rights of security holders:
(a) Articles of Incorporation
(b) Bylaws
(c) Stock Certificate Specimen
(24) Consent of expert
(a) Auditors
(27) Financial Data Schedule
SIGNATURES
In accordance with Section 12 of the Securities Exchange Act of 1934,
the Registrant caused this Registration Statement to be signed on its behalf
by the undersigned thereunto duly authorized.
TAC ASSET CORP.
By:/s/ Anthony DeMint
Anthony N. DeMint, Director and President
February 4, 2000
Las Vegas, NV
ARTICLES OF INCORPORATION
OF
TAC ASSET CORP.
KNOW ALL MEN BY THESE PRESENTS:
That the undersigned, being at least eighteen (18) years of age and
acting as the incorporator of the Corporation hereby being formed under and
pursuant to the laws of the State of Nevada, does hereby certify that:
Article I - NAME
The exact name of this corporation is:
TAC ASSET CORP.
Article II - REGISTERED OFFICE AND RESIDENT AGENT
The registered office and place of business in the State of Nevada
of this corporation shall be located at 1850 E. Flamingo Rd., Suite 111, Las
Vegas, Nevada. The resident agent of the corporation is DONALD J.
STOECKLEIN, whose address is 1850 E. Flamingo Rd., Suite 111, Las Vegas,
Nevada 89119.
Article III - DURATION
The Corporation shall have perpetual existence.
Article IV - PURPOSES
The purpose, object and nature of the business for which this
corporation is organized are:
(a) To engage in any lawful activity, (b) To carry on such
business as may be necessary, convenient, or desirable to accomplish the
above purposes, and to do all other things incidental thereto which are
<PAGE>
not forbidden by law or by these Articles of Incorporation.
Article V - POWERS
This Corporation is formed pursuant to Chapter 78 of the Nevada Revised
Statutes. The powers of the Corporation shall be those powers granted by
78.060 and 78.070 of the Nevada Revised Statutes under which this corporation
is formed. In addition, the corporation shall have the following specific
powers:
(a) To elect or appoint officers and agents of the corporation and
to fix their compensation; (b) To act as an agent for any individual,
association, partnership, corporation or other legal entity; (c) To
receive, acquire, hold, exercise rights arising out of the ownership or
possession thereof, sell, or otherwise dispose of, shares or other
interests in, or obligations of, individuals, association, partnerships,
corporations, or governments; (d) To receive, acquire, hold, pledge,
transfer, or otherwise dispose of shares of the corporation, but such
shares may only be purchased, directly or indirectly, out of earned
surplus; (e) To make gifts or contributions for the public welfare or
for charitable, scientific or educational purposes.
Article VI - CAPITAL STOCK
Section 1. Authorized Shares. The total number of shares which
this corporation is authorized to issue is 20,000,000 shares of Common
Stock of $.001 par value and 5,000,000 shares of Preferred Stock of
$.001 par value. The authority of the Corporation to issue non-voting
convertible and/or non-voting non-convertible preferred shares together
<PAGE>
with additional classes of shares may be limited by resolution of the
Board of Directors of the Corporation. Preferred shares and additional
classes of shares may be issued from time to time as the Board of
Directors may determine in their sole judgment and without the necessity
of action by the holders of Shares.
Section 2. Voting Rights of Stockholders. Each holder of the
Common Stock shall be entitled to one vote for each share of stock
standing in his name on the books of the corporation.
Section 3. Consideration for Shares. The Common Stock shall be
issued for such consideration, as shall be fixed from time to time by
the Board of Directors. In the absence of fraud, the judgment of the
Directors as to the value of any property or services received in full
or partial payment for shares shall be conclusive. When shares are
issued upon payment of the consideration fixed by the Board of
Directors, such shares shall be taken to be fully paid stock and shall
be non-assessable. The Articles shall not be amended in this
particular.
Section 4. Stock Rights and Options. The corporation shall have
the power to create and issue rights, warrants, or options entitling the
holders thereof to purchase from the corporation any shares of its
capital stock of any class or classes, upon such terms and conditions
and at such times and prices as the Board of Directors may provide,
which terms and conditions shall be incorporated in an instrument or
instruments evidencing such rights. In the absence of fraud, the
judgment of the Directors as to the adequacy of consideration for the
issuance of such rights or options and the sufficiency thereof shall be
conclusive.
Article VII - MANAGEMENT
For the management of the business, and for the conduct of the affairs
of the corporation, and for the future definition, limitation, and regulation
of the powers of the corporation and its directors and stockholders, it is
further provided:
<PAGE>
Section 1. Size of Board. The initial number of the Board of
Directors shall be one (1). Thereafter, the number of directors shall
be as specified in the Bylaws of the corporation, and such number may
from time to time be increased or decreased in such manner as prescribed
by the Bylaws. Directors need not be stockholders.
Section 2. Powers of Board. In furtherance and not in limitation
of the powers conferred by the laws of the State of Nevada, the Board of
Directors is expressly authorized and empowered:
(a) To make, alter, amend, and repeal the Bylaws subject to the
power of the stockholders to alter or repeal the Bylaws made by the
Board of Directors;
(b) Subject to the applicable provisions of the Bylaws then in
effect, to determine, from time to time, whether and to what extent, and
at what times and places, and under what conditions and regulations, the
accounts and books of the corporation, or any of them, shall be open to
stockholder inspection. No stockholder shall have any right to inspect
any of the accounts, books or documents of the corporation, except as
permitted by law, unless and until authorized to do so by resolution of
the Board of Directors or of the stockholders of the Corporation;
(c) To authorize and issue, without stockholder consent,
obligations of the Corporation, secured and unsecured, under such terms
and conditions as the Board, in its sole discretion, may determine, and
to pledge or mortgage, as security therefore, any real or personal
property of the corporation, including after-acquired property;
(d) To determine whether any and, if so, what part of the earned
surplus of the corporation shall be paid in dividends to the
stockholders, and to direct and determine other use and disposition of
any such earned surplus;
<PAGE>
(e) To fix, from time to time, the amount of the profits of the
corporation to be reserved as working capital or for any other lawful
purpose;
(f) To establish bonus, profit-sharing, stock option, or other
types of incentive compensation plans for the employees, including
officers and directors, of the corporation, and to fix the amount of
profits to be shared or distributed, and to determine the persons to
participate in any such plans and the amount of their respective
participations.
(g) To designate, by resolution or resolutions passed by a
majority of the whole Board, one or more committees, each consisting of
two or more directors, which, to the extent permitted by law and
authorized by the resolution or the Bylaws, shall have and may exercise
the powers of the Board;
(h) To provide for the reasonable compensation of its own members
by Bylaw, and to fix the terms and conditions upon which such
compensation will be paid;
(i) In addition to the powers and authority hereinbefore, or by
statute, expressly conferred upon it, the Board of Directors may
exercise all such powers and do all such acts and things as may be
exercised or done by the corporation, subject, nevertheless, to the
provisions of the laws of the State of Nevada, of these Articles of
Incorporation, and of the Bylaws of the corporation.
Section 3. Interested Directors. No contract or transaction
between this corporation and any of its directors, or between this
corporation and any other corporation, firm, association, or other legal
entity shall be invalidated by reason of the fact that the director of
the corporation has a direct or indirect interest, pecuniary or
<PAGE>
otherwise, in such corporation, firm, association, or legal entity, or
because the interested director was present at the meeting of the Board
of Directors which acted upon or in reference to such contract or
transaction, or because he participated in such action, provided that:
(1) the interest of each such director shall have been disclosed to or
known by the Board and a disinterested majority of the Board shall have,
nonetheless, ratified and approved such contract or transaction (such
interested director or directors may be counted in determining whether a
quorum is present for the meeting at which such ratification or approval
is given); or (2) the conditions of N.R.S. 78.140 are met.
Section 4. Names and Addresses. The name and post office address
of the first Board of Directors which shall consist of one (1) person
who shall hold office until his successors are duly elected and
qualified, are as follows:
NAME ADDRESS
ANTHONY N. DeMINT 1850 E. Flamingo Road, Suite 111
Las Vegas, NV 89119
Article VIII - PLACE OF MEETING; CORPORATE BOOKS
Subject to the laws of the State of Nevada, the stockholders and the
directors shall have power to hold their meetings, and the directors shall
have power to have an office or offices and to maintain the books of the
Corporation outside the State of Nevada, at such place or places as may from
time to time be designated in the Bylaws or by appropriate resolution.
Article IX - AMENDMENT OF ARTICLES
The provisions of these Articles of Incorporation may be amended,
altered or repealed from time to time to the extent and in the manner
prescribed by the laws of the State of Nevada, and additional provisions
authorized by such laws as are then in force may be added. All rights herein
conferred on the directors, officers and stockholders are granted subject to
this reservation.
<PAGE>
Article X - INCORPORATOR
The name and address of the incorporator signing these Articles of
Incorporation are as follows:
NAME POST OFFICE ADDRESS
ANTHONY N. DeMINT 1850 E. Flamingo Road, Suite 111
Las Vegas, NV 89119
Article XI - LIMITED LIABILITY OF OFFICERS AND DIRECTORS
Except as hereinafter provided, the officers and directors of the
corporation shall not be personally liable to the corporation or its
stockholders for damages for breach of fiduciary duty as a director or
officer. This limitation on personal liability shall not apply to acts or
omissions which involve intentional misconduct, fraud, knowing violation of
law, or unlawful distributions prohibited by Nevada Revised Statutes Section
78.300.
IN WITNESS WHEREOF, the undersigned incorporator has executed these
Articles of Incorporation this 17th day of 2000.
/s/ Anthony DeMint
_________________________________
ANTHONY N. DeMINT
STATE OF NEVADA )
) ss:
COUNTY OF CLARK )
On January 17, 2000, personally appeared before me, a Notary
Public, ANTHONY N. DeMINT, who acknowledged to me that he executed the
foregoing Articles of Incorporation.
/s/ Debra Amigone
_________________________________
NOTARY PUBLIC
BYLAWS
OF
TAC ASSET CORP.
a Nevada corporation
ARTICLE I
OFFICES
Section 1. PRINCIPAL OFFICES. The principal office shall be in
the City of Las Vegas, County of Clark, State of Nevada.
Section 2. OTHER OFFICES. The board of directors may at any
time establish branch or subordinate offices at any place or places where the
corporation is qualified to do business.
ARTICLE II
MEETINGS OF STOCKHOLDERS
Section 1. PLACE OF MEETINGS. Meetings of stockholders shall
be held at any place within or without the State of Nevada designated by the
board of directors. In the absence of any such designation, stockholders'
meetings shall be held at the principal executive office of the corporation.
Section 2. ANNUAL MEETINGS. The annual meetings of
stockholders shall be held at a date and time designated by the board of
directors. (At such meetings, directors shall be elected and any other
proper business may be transacted by a plurality vote of stockholders.)
Section 3. SPECIAL MEETINGS. A special meeting of the
stockholders, for any purpose or purposes whatsoever, unless prescribed by
statute or by the articles of incorporation, may be called at any time by the
president and shall be called by the president or secretary at the request in
writing of a majority of the board of directors, or at the request in writing
of stockholders holding shares in the aggregate entitled to cast not less
than a majority of the votes at any such meeting.
The request shall be in writing, specifying the time of such
meeting, the place where it is to be held and the general nature of the
business proposed to be transacted, and shall be delivered personally or sent
by registered mail or by telegraphic or other facsimile transmission to the
chairman of the board, the president, any vice president or the secretary of
the corporation. The officer receiving such request forthwith shall cause
notice to be given to the stockholders entitled to vote, in accordance with
<PAGE>
the provisions of Sections 4 and 5 of this Article II, that a meeting will be
held at the time requested by the person or persons calling the meeting, not
less than thirty-five (35) nor more than sixty (60) days after the receipt of
the request. If the notice is not given within twenty (20) days after
receipt of the request, the person or persons requesting the meeting may give
the notice. Nothing contained in this paragraph of this Section 3 shall be
construed as limiting, fixing or affecting the time when a meeting of
stockholders called by action of the board of directors may be held.
Section 4. NOTICE OF STOCKHOLDERS' MEETINGS. All notices of
meetings of stockholders shall be sent or otherwise given in accordance with
Section 5 of this Article II not less than ten (10) nor more than sixty (60)
days before the date of the meeting being noticed. The notice shall specify
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 of directors, at the
time of giving the notice, intends to present for action by the stockholders.
The notice of any meeting at which directors are to be elected shall include
the name of any nominee or nominees which, at the time of the notice,
management intends to present for election.
If action is proposed to be taken at any meeting for approval of
(i) contracts or transactions in which a director has a direct or indirect
financial interest, (ii) an amendment to the articles of incorporation, (iii)
a reorganization of the corporation, (iv) dissolution of the corporation, or
(v) a distribution to preferred stockholders, the notice shall also state the
general nature of such proposal.
Section 5. MANNER OF GIVING NOTICE; AFFIDAVIT OF NOTICE.
Notice of any meeting of stockholders shall be given either personally or by
first-class mail or telegraphic or other written communication, charges
prepaid, addressed to the stockholder at the address of such stockholder
appearing on the books of the corporation or given by the stockholder to the
corporation for the purpose of notice. If no such address appears on the
corporation's books or is given, notice shall be deemed to have been given if
sent by mail or telegram to the corporation's principal executive office, or
if published at least once in a newspaper of general circulation in the
county where this office is located. Personal delivery of any such notice to
any officer of a corporation or association or to any member of a partnership
shall constitute delivery of such notice to such corporation, association or
partnership. Notice shall be deemed to have been given at the time when
delivered personally or deposited in the mail or sent by telegram or other
means of written communication. In the event of the transfer of stock after
delivery or mailing of the notice of and prior to the holding of the meeting,
it shall not be necessary to deliver or mail notice of the meeting to the
transferee.
If any notice addressed to a stockholder at the address of such
stockholder appearing on the books of the corporation is returned to the
corporation by the United States Postal Service marked to indicate that the
United States Postal Service is unable to deliver the notice to the
stockholder at such address, all future notices or reports shall be deemed to
have been duly given without further mailing if the same shall be available
to the stockholder upon written demand of the stockholder at the principal
executive office of the corporation for a period of one year from the date of
the giving of such notice.
<PAGE>
An affidavit of the mailing or other means of giving any notice of
any stockholders' meeting shall be executed by the secretary, assistant
secretary or any transfer agent of the corporation giving such notice, and
shall be filed and maintained in the minute book of the corporation.
Business transacted at any special meeting of stockholders shall be
limited to the purposes stated in the notice.
Section 6. QUORUM. The presence in person or by proxy of the
holders of a majority of the shares entitled to vote at any meeting of
stockholders shall constitute a quorum for the transaction of business,
except as otherwise provided by statute or the articles of incorporation.
The stockholders present at a duly called or held meeting at which a quorum
is present may continue to do business until adjournment, notwithstanding the
withdrawal of enough stockholders to leave less than a quorum, if any action
taken (other than adjournment) is approved by at least a majority of the
shares required to constitute a quorum.
Section 7. ADJOURNED MEETING AND NOTICE THEREOF. Any
stockholders' meeting, annual or special, whether or not a quorum is present,
may be adjourned from time to time by the vote of the majority of the shares
represented at such meeting, either in person or by proxy, but in the absence
of a quorum, no other business may be transacted at such meeting.
When any meeting of stockholders, either annual or special, is
adjourned to another time or place, notice need not be given of the adjourned
meeting if the time and place thereof are announced at a meeting at which the
adjournment is taken. At any adjourned meeting the corporation may transact
any business which might have been transacted at the original meeting.
Section 8. VOTING. Unless a record date set for voting
purposes be fixed as provided in Section 1 of Article VII of these bylaws,
only persons in whose names shares entitled to vote stand on the stock
records of the corporation at 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 the
meeting is held) shall be entitled to vote at such meeting. Any stockholder
entitled to vote on any matter other than elections of directors or officers,
may vote part of the shares in favor of the proposal and refrain from voting
the remaining shares or vote them against the proposal, but, if the
stockholder fails to specify the number of shares such stockholder is voting
affirmatively, it will be conclusively presumed that the stockholder's
approving vote is with respect to all shares such stockholder is entitled to
vote. Such vote may be by voice vote or by ballot; provided, however, that
all elections for directors must be by ballot upon demand by a stockholder at
any election and before the voting begins.
When a quorum is present or represented at any meeting, the vote of
the holders of a majority of the stock having voting power present in person
or represented by proxy shall decide any question brought before such
meeting, unless the question is one upon which by express provision of the
statutes or of the articles of incorporation a different vote is required in
<PAGE>
which case such express provision shall govern and control the decision of
such question. Every stockholder of record of the corporation shall be
entitled at each meeting of stockholders to one vote for each share of stock
standing in his name on the books of the corporation.
Section 9. WAIVER OF NOTICE OR CONSENT BY ABSENT STOCKHOLDERS.
The transactions at any meeting of stockholders, either annual or special,
however called and noticed, and wherever held, shall be as valid as though
had at a meeting duly held after regular call and notice, if a quorum be
present either in person or by proxy, and if, either before or after the
meeting, each person entitled to vote, not present in person or by proxy,
signs a written waiver of notice or a consent to a holding of the meeting, or
an approval of the minutes thereof. The waiver of notice or consent need not
specify either the business to be transacted or the purpose of any regular or
special meeting of stockholders, except that if action is taken or proposed
to be taken for approval of any of those matters specified in the second
paragraph of Section 4 of this Article II, the waiver of notice or consent
shall state the general nature of such proposal. All such waivers, consents
or approvals shall be filed with the corporate records or made a part of the
minutes of the meeting.
Attendance of a person at a meeting shall also constitute a waiver
of notice of such meeting, except when the person objects, at the beginning
of the meeting, to the transaction of any business because the meeting is not
lawfully called or convened, and except that attendance at a meeting is not a
waiver of any right to object to the consideration of matters not included in
the notice if such objection is expressly made at the meeting.
Section 10. STOCKHOLDER ACTION BY WRITTEN CONSENT WITHOUT A
MEETING. Any action which may be taken at any annual or special meeting of
stockholders may be taken without a meeting and without prior notice, if a
consent in writing, setting forth the action so taken, is 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. All
such consents shall be filed with the secretary of the corporation and shall
be maintained in the corporate records. Any stockholder giving a written
consent, or the stockholder's proxy holders, or a transferee of the shares of
a personal representative of the stockholder of their respective proxy
holders, may revoke the consent by a writing received by the secretary of the
corporation prior to the time that written consents of the number of shares
required to authorize the proposed action have been filed with the secretary.
Section 11. PROXIES. Every person entitled to vote for
directors or on any other matter shall have the right to do so either in
person or by one or more agents authorized by a written proxy signed by the
person and filed with the secretary of the corporation. A proxy shall be
deemed signed if the stockholder's name is placed on the proxy (whether by
manual signature, typewriting, telegraphic transmission or otherwise) by the
stockholder or the stockholder's attorney in fact. A validly executed proxy
which does not state that it is irrevocable shall continue in full force and
effect unless revoked by the person executing it, prior to the vote pursuant
thereto, by a writing delivered to the corporation stating that the proxy is
revoked or by a subsequent proxy executed by, or attendance at the meeting
and voting in person by the person executing the proxy; provided, however,
<PAGE>
that no such proxy shall be valid after the expiration of six (6) months from
the date of such proxy, unless coupled with an interest, or unless the person
executing it specifies therein the length of time for which it is to continue
in force, which in no case shall exceed seven (7) years from the date of its
execution. Subject to the above and the provisions of Section 78.355 of the
Nevada General Corporation Law, any proxy duly executed is not revoked and
continues in full force and effect until an instrument revoking it or a duly
executed proxy bearing a later date is filed with the secretary of the
corporation.
Section 12. INSPECTORS OF ELECTION. Before any meeting of
stockholders, the board of directors may appoint any persons other than
nominees for office to act as inspectors of election at the meeting or its
adjournment. If no inspectors of election are appointed, the chairman of the
meeting may, and on the request of any stockholder or his proxy shall,
appoint inspectors of election at the meeting. The number of inspectors
shall be either one (1) or three (3). If inspectors are appointed at a
meeting on the request of one or more stockholders or proxies, the holders of
a majority of shares or their proxies present at the meeting shall determine
whether one (1) or three (3) inspectors are to be appointed. If any person
appointed as inspector fails to appear or fails or refuses to act, the
vacancy may be filled by appointment by the board of directors before the
meeting, or by the chairman at the meeting.
The duties of these inspectors shall be as follows:
(a) Determine the number of shares outstanding and the voting
power of each, the shares represented at the meeting, the existence of a
quorum, and the authenticity, validity, and effect of proxies;
(b) Receive votes, ballots, or consents;
(c) Hear and determine all challenges and questions in any
way arising in connection with the right to vote;
(d) Count and tabulate all votes or consents;
(e) Determine the election result; and
(f) Do any other acts that may be proper to conduct the
election or vote with fairness to all stockholders.
<PAGE>
ARTICLE III
DIRECTORS
Section 1. POWERS. Subject to the provisions of the Nevada
General Corporation Law and any limitations in the articles of incorporation
and these bylaws relating to action required to be approved by the
stockholders or by the outstanding shares, 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 of directors.
Without prejudice to such general powers, but subject to the same
limitations, it is hereby expressly declared that the directors shall have
the power and authority to:
(a) Select and remove all officers, agents, and employees of
the corporation, prescribe such powers and duties for them as may not be
inconsistent with law, with the articles of incorporation or these bylaws,
fix their compensation, and require from them security for faithful service.
(b) Change the principal executive office or the principal
business office from one location to another; cause the corporation to be
qualified to do business in any other state, territory, dependency, or
foreign country and conduct business within or without the State; designate
any place within or without the State for the holding of any stockholders'
meeting, or meetings, including annual meetings; adopt, make and use a
corporate seal, and prescribe the forms of certificates of stock, and alter
the form of such seal and of such certificates from time to time as in their
judgment they may deem best, provided that such forms shall at all times
comply with the provisions of law.
(c) Authorize the issuance of shares of stock of the
corporation from time to time, upon such terms as may be lawful, in
consideration of money paid, labor done or services actually rendered, debts
or securities canceled, tangible or intangible property actually received.
(d) Borrow money and incur indebtedness for the purpose of
the corporation, and cause to be executed and delivered therefore, in the
corporate name, promissory notes, bonds, debentures, deeds of trust,
mortgages, pledges, hypothecations, or other evidences of debt and securities
therefore.
Section 2. NUMBER OF DIRECTORS. The authorized number of
directors shall be no fewer than one (1) nor more than seven (7). The exact
number of authorized directors shall be set by resolution of the board of
directors, within the limits specified above. The maximum or minimum number
of directors cannot be changed, nor can a fixed number be substituted for the
maximum and minimum numbers, except by a duly adopted amendment to this bylaw
duly approved by a majority of the outstanding shares entitled to vote.
<PAGE>
Section 3. QUALIFICATION, ELECTION AND TERM OF OFFICE OF
DIRECTORS. Directors shall be elected at each annual meeting of the
stockholders to hold office until the next annual meeting, but if any such
annual meeting is not held or the directors are not elected at any annual
meeting, the directors may be elected at any special meeting of stockholders
held for that purpose, or at the next annual meeting of stockholders held
thereafter. Each director, including a director elected to fill a vacancy,
shall hold office until the expiration of the term for which elected and
until a successor has been elected and qualified or until his earlier
resignation or removal or his office has been declared vacant in the manner
provided in these bylaws. Directors need not be stockholders.
Section 4. RESIGNATION AND REMOVAL OF DIRECTORS. Any director
may resign effective upon giving written notice to the chairman of the board,
the president, the secretary or the board of directors of the corporation,
unless the notice specifies a later time for the effectiveness of such
resignation, in which case such resignation shall be effective at the time
specified. Unless such resignation specifies otherwise, its acceptance by
the corporation shall not be necessary to make it effective. The board of
directors may declare vacant the office of a director who has been declared
of unsound mind by an order of a court or convicted of a felony. Any or all
of the directors may be removed without cause of such removal is approved by
the affirmative vote of a majority of the outstanding shares entitled to
vote. No reduction of the authorized number of directors shall have the
effect of removing any director before his term of office expires.
Section 5. VACANCIES. Vacancies in the board of directors, may
be filled by a majority of the remaining directors, though less than a
quorum, or by a sole remaining director. Each director so elected shall hold
office until the next annual meeting of the stockholders and until a
successor has been elected and qualified.
A vacancy in the board of directors exists as to any authorized
position of directors which is not then filled by a duly elected director,
whether caused by death, resignation, removal, increase in the authorized
number of directors or otherwise.
The stockholders may elect a director or directors at any time to
fill any vacancy or vacancies not filled by the directors, but any such
election by written consent shall require the consent of a majority of the
outstanding shares entitled to vote. If the resignation of a director is
effective at a future time, the board of directors may elect a successor to
take office when the resignation becomes effective.
If after the filling of any vacancy by the directors, the directors
then in office who have been elected by the stockholders shall constitute
less than a majority of the directors then in office, any holder or holders
of an aggregate of five percent or more of the total number of shares at the
time outstanding having the right to vote for such directors may call a
special meeting of the stockholders to elect the entire board. The term of
office of any director not elected by the stockholders shall terminate upon
the election of a successor.
<PAGE>
Section 6. PLACE OF MEETINGS. Regular meetings of the board of
directors shall be held at any place within or without the State of Nevada
that has been designated from time to time by resolution of the board. In
the absence of such designation, regular meetings shall be held at the
principal executive office of the corporation. Special meetings of the board
shall be held at any place within or without the State of Nevada that has
been designated in the notice of the meeting or, if not stated in the notice
or there is not notice, at the principal executive office of the corporation.
Any meeting, regular or special, may be held by conference telephone or
similar communication equipment, so long as all directors participating in
such meeting can hear one another, and all such directors shall be deemed to
be present in person at such meeting.
Section 7. ANNUAL MEETINGS. Immediately following each annual
meeting of stockholders, the board of directors shall hold a regular meeting
for the purpose of transaction of other business. Notice of this meeting
shall not be required.
Section 8. OTHER REGULAR MEETINGS. Other regular meetings of
the board of directors shall be held without call at such time as shall from
time to time be fixed by the board of directors. Such regular meetings may
be held without notice, provided the notice of any change in the time of any
such meetings shall be given to all of the directors. Notice of a change in
the determination of the time shall be given to each director in the same
manner as notice for special meetings of the board of directors.
Section 9. SPECIAL MEETINGS. Special meetings of the board of
directors for any purpose or purposes may be called at any time by the
chairman of the board or the president or any vice president or the secretary
or any two directors.
Notice of the time and place of special meetings shall be delivered
personally or by telephone to each director or sent by first-class mail or
telegram, charges prepaid, addressed to each director at his or her address
as it is shown upon the records of the corporation. In case such notice is
mailed, it shall be deposited in the United States mail at least four (4)
days prior to the time of the holding of the meeting. In case such notice is
delivered personally, or by telephone or telegram, it shall be delivered
personally or by telephone or to the telegraph company at least forty-eight
(48) hours prior to the time of the holding of the meeting. Any oral notice
given personally or by telephone may be communicated to either the director
or to a person at the office of the director who the person giving the notice
has reason to believe will promptly communicate it to the director. The
notice need not specify the purpose of the meeting nor the place if the
meeting is to be held at the principal executive office of the corporation.
Section 10. QUORUM. A majority of the authorized number of
directors shall constitute a quorum 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 of directors, subject to
the provisions of Section 78.140 of the Nevada General Corporation Law
(approval of contracts or transactions in which a director has a direct or
indirect material financial interest), Section 78.125 (appointment of
committees), and Section 78.751 (indemnification of directors). 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 required quorum for such meeting.
<PAGE>
Section 11. WAIVER OF NOTICE. The transactions of any meeting
of the board of directors, however called and noticed or wherever held, shall
be 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 the meeting or an approval of the minutes thereof. The waiver of
notice of consent need not specify the purpose of the meeting. All such
waivers, consents and approvals shall be filed with the corporate records or
made a part of the minutes of the meeting. Notice of a meeting shall also be
deemed given to any director who attends the meeting without protesting,
prior thereto or at its commencement, the lack of notice to such director.
Section 12. ADJOURNMENT. A majority of the directors present,
whether or not constituting a quorum, may adjourn any meeting to another time
and place.
Section 13. NOTICE OF ADJOURNMENT. Notice of the time and place
of holding an adjourned meeting need not be given, unless the meeting is
adjourned for more than twenty-four (24) hours, in which case notice of such
time and place shall be given prior to the time of the adjourned meeting, in
the manner specified in Section 8 of this Article III, to the directors who
were not present at the time of the adjournment.
Section 14. ACTION WITHOUT MEETING. Any action required or
permitted to be taken by the board of directors may be taken without a
meeting, if all members of the board shall individually or collectively
consent in writing to such action. Such action by written consent shall have
the same force and effect as a unanimous vote of the board of directors.
Such written consent or consents shall be filed with the minutes of the
proceedings of the board.
Section 15. FEES AND COMPENSATION OF DIRECTORS. Directors and
members of committees may receive such compensation, if any, for their
services, and such reimbursement of expenses, as may be fixed or determined
by resolution of the board of directors. Nothing herein contained shall be
construed to preclude any director from serving the corporation in any other
capacity as an officer, agent, employee, or otherwise, and receiving
compensation for such services. Members of special or standing committees
may be allowed like compensation for attending committee meetings.
ARTICLE IV
COMMITTEES
Section 1. COMMITTEES OF DIRECTORS. The board of directors
may, by resolution adopted by a majority of the authorized number of
directors, designate one or more committees, each consisting of one or more
directors, to serve at the pleasure of the board. The board may designate
one or more directors as alternate members of any committees, who may replace
<PAGE>
any absent member at any meeting of the committee. Any such committee, to
the extent provided in the resolution of the board, shall have all the
authority of the board, except with regard to:
(a) the approval of any action which, under the Nevada
General Corporation Law, also requires stockholders' approval or approval of
the outstanding shares;
(b) the filing of vacancies on the board of directors or in
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 of
directors which by its express terms is not so amendable or repealable;
(f) a distribution to the stockholders of the corporation,
except at a rate or in a periodic amount or within a price range determined
by the board of directors; or
(g) the appointment of any other committees of the board of
directors or the members thereof.
Section 2. MEETINGS AND ACTION BY COMMITTEES. Meetings and
action of committees shall be governed by, and held and taken in accordance
with, the provisions of Article III, Sections 6 (place of meetings), 8
(regular meetings), 9 (special meetings and notice), 10 (quorum), 11 (waiver
of notice), 12 (adjournment), 13 (notice of adjournment) and 14 (action
without meeting), with such changes in the context of those bylaws as are
necessary to substitute the committee and its members for the board of
directors and its members, except that the time or regular meetings of
committees may be determined by resolutions of the board of directors and
notice of special meetings of committees shall also be given to all alternate
members, who shall have the right to attend all meetings of the committee.
The board of directors may adopt rules for the government of any committee
not inconsistent with the provisions of these bylaws. The committees shall
keep regular minutes of their proceedings and report the same to the board
when required.
ARTICLE V
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 of directors, a chairman of the board, one or
more vice presidents, one or more assistant secretaries, one or more
assistant treasurers, and such other officers as may be appointed in
<PAGE>
accordance with the provisions of Section 3 of this Article V. Any two or
more offices may be held by the same person.
Section 2. ELECTION OF OFFICERS. The officers of the
corporation, except such officers as may be appointed in accordance with the
provisions of Section 3 or Section 5 of this Article V, shall be chosen by
the board of directors, and each shall serve at the pleasure of the board,
subject to the rights, if any, of an officer under any contract of
employment. The board of directors at its first meeting after each annual
meeting of stockholders shall choose a president, a vice president, a
secretary and a treasurer, none of whom need be a member of the board. The
salaries of all officers and agents of the corporation shall be fixed by the
board of directors.
Section 3. SUBORDINATE OFFICERS, ETC. The board of directors
may appoint, 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 the bylaws or as the board of directors may from time to time determine.
Section 4. REMOVAL AND RESIGNATION OF OFFICERS. The officers
of the corporation shall hold office until their successors are chosen and
qualify. Subject to the rights, if any, of an officer under any contract of
employment, any officer may be removed, either with or without cause, by the
board of directors, at any regular or special meeting thereof, or, except in
case of an officer chosen by the board of directors, by any officer upon whom
such power or removal may be conferred by the board of directors.
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; and, unless
otherwise specified therein, the acceptance of such resignation shall not be
necessary to make it effective. Any such resignation is without prejudice to
the rights, if any, of the corporation under any contract to which the
officer is a party.
Section 5. VACANCIES IN OFFICES. A vacancy in any office
because of death, resignation, removal, disqualification or any other cause
shall be filled in the manner prescribed in these bylaws for regular
appointments to such office.
Section 6. CHAIRMAN OF THE BOARD. The chairman of the board,
if such an officer be elected, shall, if present, preside at all meetings of
the board of directors and exercise and perform such other powers and duties
as may be from time to time assigned to him by the board of directors or
prescribed by the bylaws. If there is no president, the chairman of the
board shall in addition be the chief executive officer of the corporation and
shall have the powers and duties prescribed in Section 7 of this Article V.
Section 7. PRESIDENT. Subject to such supervisory powers, if
any, as may be given by the board of directors to the chairman of the board,
if there be such an officer, the president shall be the chief executive
officer of the corporation and shall, subject to the control of the board of
<PAGE>
directors, have general supervision, direction and control of the business
and the officers of the corporation. He shall preside at all meetings of the
stockholders and, in the absence of the chairman of the board, of if there be
none, at all meetings of the board of directors. He shall have the general
powers and duties of management usually vested in the office of president of
a corporation, and shall have such other powers and duties as may be
prescribed by the board of directors or the bylaws. He shall execute bonds,
mortgages and other contracts requiring a seal, under the seal of the
corporation, except where required or permitted by law to be otherwise signed
and executed and except where the signing and execution thereof shall be
expressly delegated by the board of directors to some other officer or agent
of the corporation.
Section 8. VICE PRESIDENTS. In the absence or disability of
the president, the vice presidents, if any, in order of their rank as fixed
by the board of directors or, if not ranked, a vice president designated by
the board of directors, 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 board of directors or the bylaws, the president
or the chairman of the board.
Section 9. SECRETARY. The secretary shall attend all meetings
of the board of directors and all meetings of the stockholders and shall
record, keep or cause to be kept, at the principal executive office or such
other place as the board of directors may order, a book of minutes of all
meetings of directors, committees of directors and stockholders, 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
directors' and committee meetings, the number of shares present or
represented at stockholders' meetings, and the proceedings thereof.
The secretary shall keep, or cause to be kept, at the principal
executive office or at the office of the corporation's transfer agent or
registrar, as determined by resolution of the board of directors, a share
register, or a duplicate share register, showing the names of all
stockholders 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
meetings of stockholders and of the board of directors required by the bylaws
or by law to be given, and he shall keep the seal of the corporation in safe
custody, as may be prescribed by the board of directors or by the bylaws.
Section 10. TREASURER. The treasurer shall keep and maintain,
or cause to be kept and maintained, adequate and correct books and records of
accounts of the properties and business transactions of the corporation,
including accounts of its assets, liabilities, receipts, disbursements,
gains, losses, capital, retained earnings and shares. The books of account
shall at all reasonable times be open to inspection by any director.
<PAGE>
The treasurer shall deposit all moneys and other valuables in the
name and to the credit of the corporation with such depositories as may be
designated by the board of directors. He shall disburse the funds of the
corporation as may be ordered by the board of directors, shall render to the
president and directors, whenever they request it, an account of all of his
transactions as treasurer and of the financial condition of the corporation,
and shall have other powers and perform such other duties as may be
prescribed by the board of directors or the bylaws.
If required by the board of directors, the treasurer shall give the
corporation a bond in such sum and with such surety or sureties as shall be
satisfactory to the board of directors for the faithful performance of the
duties of his office and for the restoration to the corporation, in case of
his death, resignation, retirement or removal from office, of all books,
papers, vouchers, money and other property of whatever kind in his possession
or under his control belonging to the corporation.
ARTICLE VI
INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES,
AND OTHER AGENTS
Section 1. ACTIONS OTHER THAN BY THE CORPORATION. The
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 attorneys' 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, has 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.
Section 2. ACTIONS BY THE CORPORATION. The 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
<PAGE>
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.
Section 3. SUCCESSFUL DEFENSE. To the extent that a director,
officer, employee or agent of the corporation has been successful on the
merits or otherwise in defense of any action, suit or proceeding referred to
in Sections 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.
Section 4. REQUIRED APPROVAL. Any indemnification under
Sections 1 and 2, unless ordered by a court or advanced pursuant to Section
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 of directors who were not parties to the 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 be obtained, by independent legal
counsel in a written opinion.
Section 5. ADVANCE OF EXPENSES. 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
action, 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 the
corporation. The provisions of this section do not affect any rights to
advancement of expenses to which corporate personnel other than directors or
officers may be entitled under any contract or otherwise by law.
Section 6. OTHER RIGHTS. The indemnification and advancement
of expenses authorized in or ordered by a court pursuant to this Article VI:
<PAGE>
(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 Section 2 or for
the advancement of expenses made pursuant to Section 5, may not be made to or
on behalf of any director or officer if a final adjudication establishes that
his acts 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.
Section 7. INSURANCE. The corporation may purchase and
maintain insurance on behalf of any person who is or was a director, officer,
employee or agent of the corporation, or is or was serving at the request of
the corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise for any
liability asserted against him and incurred by him in any such capacity, or
arising out of his status as such, whether or not the corporation would have
the power to indemnify him against such liability under the provisions of
this Article VI.
Section 8. RELIANCE ON PROVISIONS. Each person who shall act
as an authorized representative of the corporation shall be deemed to be
doing so in reliance upon the rights of indemnification provided by this
Article.
Section 9. SEVERABILITY. If any of the provisions of this
Article are held to be invalid or unenforceable, this Article shall be
construed as if it did not contain such invalid or unenforceable provision
and the remaining provisions of this Article shall remain in full force and
effect.
Section 10. RETROACTIVE EFFECT. To the extent permitted by
applicable law, the rights and powers granted pursuant to this Article VI
shall apply to acts and actions occurring or in progress prior to its
adoption by the board of directors.
ARTICLE VII
RECORDS AND BOOKS
Section 1. MAINTENANCE OF SHARE REGISTER. The corporation
shall keep at its principal executive office, or at the office of its
transfer agent or registrar, if either be appointed and as determined by
resolution of the board of directors, a record of its stockholders, giving
the names and addresses of all stockholders and the number and class of
shares held by each stockholder.
<PAGE>
Section 2. MAINTENANCE OF BYLAWS. The corporation shall keep
at its principal executive office, or if its principal executive office is
not in this State at its principal business office in this State, the
original or a copy of the bylaws as amended to date, which shall be open to
inspection by the stockholders at all reasonable times during office hours.
If the principal executive office of the corporation is outside this state
and the corporation has no principal business office in this state, the
secretary shall, upon the written request of any stockholder, furnish to such
stockholder a copy of the bylaws as amended to date.
Section 3. MAINTENANCE OF OTHER CORPORATE RECORDS. The
accounting books and records and minutes of proceedings of the stockholders
and the board of directors and any committee or committees of the board of
directors shall be kept at such place or places designated by the board of
directors, or, in the absence of such designation, at the principal executive
office of the corporation. The minutes shall be kept in written form and the
accounting books and records shall be kept either in written form or in any
other form capable of being converted into written form.
Every director shall have the absolute right at any reasonable time
to inspect and copy all books, records and documents of every kind and to
inspect the physical properties of this corporation and any subsidiary of
this corporation. Such inspection by a director may be made in person or by
agent or attorney and the right of inspection includes the right to copy and
make extracts. The foregoing rights of inspection shall extend to the
records of each subsidiary of the corporation.
Section 4. ANNUAL REPORT TO STOCKHOLDERS. Nothing herein shall
be interpreted as prohibiting the board of directors from issuing annual or
other periodic reports to the stockholders of the corporation as they deem
appropriate.
Section 5. FINANCIAL STATEMENTS. A copy of any annual
financial statement and any income statement of the corporation for each
quarterly period of each fiscal year, and any accompanying balance sheet of
the corporation as of the end of each such period, that has been prepared by
the corporation shall be kept on file in the principal executive office of
the corporation for twelve (12) months.
Section 6. ANNUAL LIST OF DIRECTORS, OFFICERS AND RESIDENT
AGENT. The corporation shall, on or before January 18th of each year, file
with the Secretary of State of the State of Nevada, on the prescribed form, a
list of its officers and directors and a designation of its resident agent in
Nevada.
<PAGE>
ARTICLE VIII
GENERAL CORPORATE MATTERS
Section 1. RECORD DATE. For purposes of determining the
stockholders entitled to notice of any meeting or to vote or entitled to
receive payment of any dividend or other distribution or allotment of any
rights or entitled to exercise any rights in respect of any other lawful
action, the board of directors may fix, in advance, a record date, which
shall not be more than sixty (60) days nor less than ten (10) days prior to
the date of any such meeting nor more than sixty (60) days prior to any other
action, and in such case only stockholders of record on the date so fixed are
entitled to notice and to vote or to receive the dividend, distribution or
allotment of rights or to exercise the rights, as the case may be,
notwithstanding any transfer of any shares on the books of the corporation
after the record date fixed as aforesaid, except as otherwise provided in the
Nevada General Corporation Law.
If the board of directors does not so fix a record date:
(a) The record date for determining stockholders entitled to
notice of or to vote at a meeting of stockholders shall be at the close of
business on the day next preceding the day on which notice is given or, if
notice is waived, at the close of business on the business day next preceding
the day on which the meeting is held.
(b) The record date for determining stockholders entitled to
give consent to corporate action in writing without a meeting, when no prior
action by the board has been taken, shall be the day on which the first
written consent is given.
(c) The record date for determining stockholders for any
other purpose shall be at the close of business on the day on which the board
adopts the resolution relating thereto, or the sixtieth (60th) day prior to
the date of such other action, whichever is later.
Section 2. CLOSING OF TRANSFER BOOKS. The directors may
prescribe a period not exceeding sixty (60) days prior to any meeting of the
stockholders during which no transfer of stock on the books of the
corporation may be made, or may fix a date not more than sixty (60) days
prior to the holding of any such meeting as the day as of which stockholders
entitled to notice of and to vote at such meeting shall be determined; and
only stockholders of record on such day shall be entitled to notice or to
vote at such meeting.
Section 3. REGISTERED STOCKHOLDERS. The corporation shall be
entitled to recognize the exclusive right of a person registered on its books
as the owner of shares to receive dividends, and to vote as such owner, and
to hold liable for calls and assessments a person registered on its books as
the owner of shares, and shall not be bound to recognize any equitable or
other claim to or interest in such share or shares on the part of any other
person, whether or not it shall have express or other notice thereof, except
as otherwise provided by the laws of Nevada.
<PAGE>
Section 4. CHECKS, DRAFTS, EVIDENCES OF INDEBTEDNESS. All
checks, drafts or other orders for payment of money, notes or other evidences
of indebtedness, issued in the name of or payable to the corporation, shall
be signed or endorsed by such person or persons and in such manner as, from
time to time, shall be determined by resolution of the board of directors.
Section 5. CORPORATE CONTRACTS AND INSTRUMENTS; HOW EXECUTED.
The board of directors, except as in the bylaws otherwise provided, may
authorize any officer or officers, agent or agents, to enter into any
contract or execute any instrument in the name of and on behalf of the
corporation, and such authority may be general or confined to specific
instances; and, unless so authorized or ratified by the board of directors or
within the agency power or authority to bind the corporation by any contract
or engagement or to pledge its credit or to render it liable for any purpose
or to any amount.
Section 6. STOCK CERTIFICATES. A certificate or certificates
for shares of the capital stock of the corporation shall be issued to each
stockholder when any such shares are fully paid, and the board of directors
may authorize the issuance of certificates or shares as partly paid provided
that such certificates shall state the amount of the consideration to be paid
therefore and the amount paid thereon. All certificates shall be signed in
the name of the corporation by the president or vice president and by the
treasurer or an assistant treasurer or the secretary or any assistant
secretary, certifying the number of shares and the class or series of shares
owned by the stockholder. When the corporation is authorized to issue shares
of more than one class or more than one series of any class, there shall be
set forth upon the face or back of the certificate, or the certificate shall
have a statement that the corporation will furnish to any stockholders upon
request and without charge, a full or summary statement of the designations,
preferences and relatives, participating, optional or other special rights of
the various classes of stock or series thereof and the qualifications,
limitations or restrictions of such rights, and, if the corporation shall be
authorized to issue only special stock, such certificate must set forth in
full or summarize the rights of the holders of such stock. Any or all of the
signatures on the certificate may be facsimile. In case any officer,
transfer agent or registrar who has signed or whose facsimile signature has
been placed upon a certificate shall have ceased to be such officer, transfer
agent or registrar before such certificate is issued, it may be issued by the
corporation with the same effect as if such person were an officer, transfer
agent or registrar at the date of issue.
No new certificate for shares shall be issued in place of any
certificate theretofore issued unless the latter is surrendered and canceled
at the same time; provided, however, that a new certificate may be issued
without the surrender and cancellation of the old certificate if the
certificate thereto fore issued is alleged to have been lost, stolen or
destroyed. In case of any such allegedly lost, stolen or destroyed
certificate, the corporation may require the owner thereof or the legal
representative of such owner to give the corporation a bond (or other
adequate security) sufficient to indemnify it against any claim that may be
made against it (including any expense or liability) on account of the
alleged loss, theft or destruction of any such certificate or the issuance of
such new certificate.
<PAGE>
Section 7. DIVIDENDS. Dividends upon the capital stock of the
corporation, subject to the provisions of the articles of incorporation, if
any, may be declared by the board of directors at any regular or special
meeting pursuant to law. Dividends may be paid in cash, in property, or in
shares of the capital stock, subject to the provisions of the articles of
incorporation.
Before payment of any dividend, there may be set aside out of any
funds of the corporation available for dividends such sum or sums as the
directors from time to time, in their absolute discretion, think proper as a
reserve or reserves to meet contingencies, or for equalizing dividends, or
for repairing or maintaining any property of the corporation, or for such
other purpose as the directors shall think conducive to the interest of the
corporation, and the directors may modify or abolish any such reserves in the
manner in which it was created.
Section 8. FISCAL YEAR. The fiscal year of the corporation
shall be fixed by resolution of the board of directors.
Section 9. SEAL. The corporate seal shall have inscribed
thereon the name of the corporation, the year of its incorporation and the
words "Corporate Seal, Nevada."
Section 10. REPRESENTATION OF SHARES OF OTHER CORPORATIONS. The
chairman of the board, the president, or any vice president, or any other
person authorized by resolution of the board of directors by any of the
foregoing designated officers, is authorized to vote on behalf of the
corporation any and all shares of any other corporation or corporations,
foreign or domestic, standing in the name of the corporation. The authority
herein granted to said officers to vote or represent on behalf of the
corporation any and all shares held by the corporation in any other
corporation or corporations may be exercised by any such officer in person or
by any person authorized to do so by proxy duly executed by said officer.
Section 11. CONSTRUCTION AND DEFINITIONS. Unless the context
requires otherwise, the general provisions, rules of construction, and
definitions in the Nevada General Corporation Law shall govern the
construction of the bylaws. Without limiting the generality of the
foregoing, the singular number includes the plural, the plural number
includes the singular, and the term "person" includes both a corporation and
a natural person.
<PAGE>
ARTICLE IX
AMENDMENTS
Section 1. AMENDMENT BY STOCKHOLDERS. New bylaws may be
adopted or these bylaws may be amended or repealed by the affirmative vote of
a majority of the outstanding shares entitled to vote, or by the written
assent of stockholders entitled to vote such shares, except as otherwise
provided by law or by the articles of incorporation.
Section 2. AMENDMENT BY DIRECTORS. Subject to the rights of
the stockholders as provided in Section 1 of this Article, bylaws may be
adopted, amended or repealed by the board of directors.
<PAGE>
CERTIFICATE OF SECRETARY
I, the undersigned, do hereby certify:
1. That I am the duly elected and acting secretary of TAC ASSET
CORP., a Nevada corporation; and
2. That the foregoing Bylaws, comprising twenty (20) pages,
constitute the Bylaws of said corporation as duly adopted and approved by the
board of directors of said corporation by a Unanimous Written Consent dated
as of January 18, 2000 and duly adopted and approved by the stockholders of
said corporation at a special meeting held on January 18, 2000.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed
the seal of said corporation this 18th day of January, 2000.
/s/ Anthony DeMint
_________________________________
ANTHONY DEMINT, Secretary
TAC ASSET CORP.
INCORPORATED UNDER THE LAWS OF THIS STATE OF NEVADA
20,000,000 SHARES COMMON STOCK AUTHORIZED, $.001 PAR VALUE
THIS
CERTIFIES
THAT SEE REVERSE FOR
CERTAIN DEFINITIONS
IS THE OWNER OF
FULLY PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK OF
TAC ASSET CORP.
transferable on the books of the corporation in person or by duly
authorized attorney upon surrender of this certificate properly endorsed.
This certificate and the shares represented hereby are subject to the laws
of this State of Nevada, and to the Certificate of Incorporation and Bylaws
of the Corporation, as now hereafter amended. This certificate is not
valid unless countersigned by the Transfer Agent. WITNESS the facsimile
seal of the Corporation and the signature of its duly authorized officers.
DATE
TAC ASSET CORP.
Corporate Seal
Nevada
SECRETARY
BARRY L. FRIEDMAN, P.C.
Certified Public Accountant
1582 TULITA DRIVE OFFICE (702) 361-8414
LAS VEGAS, NEVADA 89123 FAX NO. (702) 896-0278
CONSENT OF INDEPENDENT AUDITORS
To Whom It May Concern:
January 21, 2000
The firm of Barry L. Friedman, P.C., Certified Public Accountant
consents to the inclusion of their report of January 21, 2000, on the
Financial Statements of Tac Asset Corp., as of January 20, 2000, in
any filings that are necessary now or in the near future with the U.S.
Securities and Exchange Commission.
Very truly yours,
/s/ Barry L. Friedman
Barry L. Friedman
Certified Public Accountant
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