SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 10SB12G
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GENERAL FORM FOR REGISTRATION OF SECURITIES
PERSUANT TO SECTION 12 (B) OR 12 (G)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number:
----------------------------
GRANADA MINERAL PRODUCTS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEVADA 87-0640430
(STATE OF INCORPORATION) (I.R.S. EMPLOYER ID NO.)
C/O 4700 South 900 East SALT LAKE CITY, UTAH 84117
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(801) 685-9573
(REGISTRANT'S TELEPHONE NUMBER)
SECURITIES TO BE REGISTERED PURSUANT TO SECTION 12 (B) OF THE ACT: NONE
SECURITIES TO BE REGISTERED PURSUANT TO SECTION 12 (G) OF THE ACT: 354,000
Title of each class Name of each exchange on which
To be so registered Each class is to be registered
Common stock: $0.001 Par value N/A
THE AGGREGATE MARKET VALUE OF THE VOTING STOCK HELD BY NON-AFFILIATES OF THE
REGISTRATION WAS $0.001 AS OF FEBRUARY 11, 2000.
SHARES OF COMMON STOCK OUTSTANDING AS OF FEBRUARY 11,2000: 354,000
<PAGE>
PART I
ITEM 1
DESCRIPTION OF BUSINESS
Granada Mineral Products, Inc., (hereinafter "The Company") was
incorporated on July 13, 1994, pursuant to the Nevada Business Corporation Act.
Its original Articles of Incorporation provided for authorized capital of one
million (1,000,000) shares of common stock with a par value of $0.01 per share.
On September 13, 1999 the authorized capital stock was increased to
100,000,000
shares with a par value of $0.001.
The Company was formed with the stated purpose " . . . to engage, without
qualification, in any lawful act or activity for which corporations may be
organized under the laws of the State of Nevada." However, the contemplated
purpose was to engage in investment and business development operations related
to mineral research and exploration.
On or about November 18, 1994, the Board of Directors authorized initial
negotiations to consider mining ore deposits located in Arizona, namely Bullard
Peak Mines in Maricopa County. Sufficient monies to retain the services of an
expert in Epitermal Deposits were secured from various individuals who, in turn
were issued stock based on a value of $0.05 per share.
Following significant research and expense, however, the Company's attempts
to compete in this field were abandoned upon discovery that the price of gold,
in decline at the time, together with the discovery that the ore deposits and
the existing mine were insufficiently deep enough to extract a profitable amount
of ore. Subsequently, all attempts to engage in business with Bullard Peak
Mines, ended by Board Resolution on or about February 24, 1995. The Company
fell into inactivity.
The Company never engaged in an active trade or business throughout the
period from inception through 1999. On or about May 28 1999, the directors
determined that the Company should become active and reinstated the Company with
the State of Nevada and began seeking potential operating businesses and
business opportunities with the intent to acquire or merge with such businesses.
The Company is considered a development stage company and, due to its
status as a "shell" corporation, its principal business purpose is to locate and
consummate a merger or acquisition with a private entity. Because of the
Company's current status having no assets and no recent operating history, in
the event the Company does successfully acquire or merge with an operating
business opportunity, it is likely that the Company's present shareholders will
experience substantial dilution and there will be a probable change in control
of the Company.
The Company is voluntarily filing its registration statement on Form 10-SB
in order to make information concerning itself more readily available to the
public. Management believes that being a reporting company under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), could provide a
prospective merger or acquisition candidate with additional information
concerning the Company. In addition, management believes that this might make
the Company more attractive to an operating business opportunity as a potential
business combination candidate.
As a result of filing its registration statement, the Company is obligated
to file with the Commission certain interim and periodic reports including an
annual report containing audited financial statements. The Company intends to
continue to voluntarily file these periodic reports under the Exchange Act even
if its obligation to file such reports is suspended under applicable provisions
of the Exchange Act.
Any target acquisition or merger candidate of the Company will become
subject to the same reporting requirements as the Company upon consummation of
any such business combination. Thus, in the event that the Company successfully
completes an acquisition or merger with another operating business, the
resulting combined business must provide audited financial statements for at
least the two most recent fiscal years or, in the event that the combined
operating business has been in business less than two years, audited financial
statements will be required from the period of inception of the target
acquisition or merger candidate.
The Company's principal executive offices are located in care of 4700 South
900 East S41B, Salt Lake City, Utah, 84117.
Business of Issuer
The Company has no recent operating history and no representation is made,
nor is any intended, that the Company will, in fact, be able to carry on future
business activities successfully. Furthermore, there can be no assurance that
the Company will have the ability to acquire or merge with an operating
business, business opportunity or property that will be of material value to the
Company.
Management plans to investigate, research and, if justified, potentially
acquire or merge with one or more businesses or business opportunities. The
Company currently has no commitment or arrangement, written or oral, to
participate in any business opportunity and management cannot predict the nature
of any potential business opportunity it may ultimately consider. Management
will have broad discretion in its search for and negotiations with any potential
business or business opportunity.
Sources of Business Opportunities
The Company intends to use various sources in its search for potential
business opportunities including its officers and directors, consultants,
special advisors, securities broker-dealers, venture capitalists, members of the
financial community and others who may present management with unsolicited
proposals.
Because of the Company's lack of capital, it may not be able to retain a
fee based professional firm specializing in business acquisitions and
reorganizations. Rather, the Company will most likely have to rely on outside
sources, not otherwise associated with the Company, that will accept their
compensation only after the Company has finalized a successful acquisition or
merger.
To date, the Company has not engaged nor any prospective consultants for
these purposes. The Company does not intend to restrict its search to any
specific entered into any definitive agreements nor understandings regarding
retention of any consultant to assist the Company in its search for business
opportunities, nor is management presently in a position to actively seek or
retain kind of industry or business.
The Company may investigate and ultimately acquire a venture that is in its
preliminary or development stage, is already in operation, or in various stages
of its corporate existence and development. Management cannot predict at this
time the status or nature of any venture in which the Company may participate. A
potential venture might need additional capital or merely desire to have its
shares publicly traded.
The most likely scenario for a possible business arrangement would involve
the acquisition of, or merger with, an operating business that does not need
additional capital, but which merely desires to establish a public trading
market for its shares. Management believes that the Company could provide a
potential public vehicle for a private entity interested in becoming a publicly
held corporation without the time and expense typically associated with an
initial public offering.
Evaluation
Once the Company has identified a particular entity as a potential
acquisition or merger candidate, management will seek to determine whether
acquisition or merger is warranted or whether further investigation is
necessary. Such determination will generally be based on management's knowledge
and experience, or with the assistance of outside advisors and consultants
evaluating the preliminary information available to them.
Management may elect to engage outside independent consultants to perform
preliminary analysis of potential business opportunities. However, because of
the Company's lack of capital it may not have the necessary funds for a complete
and exhaustive investigation of any particular opportunity. In evaluating such
potential business opportunities, the Company will consider, to the extent
relevant to the specific opportunity, several factors including potential
benefits to the Company and its shareholders; working capital, financial
requirements and availability of additional financing; history of operation, if
any; nature of present and expected competition; quality and experience of
management; need for further research, development or exploration; potential for
growth and expansion; potential for profits; and other factors deemed relevant
to the specific opportunity.
Because the Company has not located or identified any specific business
opportunity as of the date hereof, there are certain unidentified risks that
cannot be adequately expressed prior to the identification of a specific
business opportunity. There can be no assurance following consummation of any
acquisition or merger that the business venture will develop into a going
concern or, if the business is already operating, that it will continue to
operate successfully. Many of the potential business opportunities available to
the Company may involve new and untested products, processes or market
strategies which may not ultimately prove successful.
Form of Potential Acquisition or Merger
Presently, the Company cannot predict the manner in which it might
participate in a prospective business opportunity. Each separate potential
opportunity will be reviewed and, upon the basis of that review, a suitable
legal structure or method of participation will be chosen. The particular manner
in which the Company participates in a specific business opportunity will depend
upon the nature of that opportunity, the respective needs and desires of the
Company and management of the opportunity, and the relative negotiating strength
of the parties involved.
Actual participation in a business venture may take the form of an asset
purchase, lease, joint venture, license, partnership, stock purchase,
reorganization, merger or consolidation. The Company may act directly or
indirectly through an interest in a partnership, corporation, or other form of
organization, however, the Company does not intend to participate in
opportunities through the purchase of minority stock positions.
Because of the Company's current status and recent inactive status, and its
concomitant lack of assets or relevant operating history, it is likely that any
potential merger or acquisition with another operating business will require
substantial dilution of the Company's existing shareholders. There will probably
be a change in control of the Company, with the incoming owners of the targeted
merger or acquisition candidate taking over control of the Company. Management
has not established any guidelines as to the amount of control it will offer to
prospective business opportunity candidates, since this issue will depend to a
large degree on the economic strength and desirability of each candidate, and
correspondent ending relative bargaining power of the parties. However,
management will endeavor to negotiate the best possible terms for the benefit of
the Company's shareholders as the case arises.
Management does not have any plans to borrow funds to compensate any
persons, consultants, promoters, or affiliates in conjunction with its efforts
to find and acquire or merge with another business opportunity. Management does
not have any plans to borrow funds to pay compensation to any prospective
business opportunity, or shareholders, management, creditors, or other potential
parties to the acquisition or merger. In either case, it is unlikely that the
Company would be able to borrow significant funds for such purposes from any
conventional lending sources. In all probability, a public sale of the Company's
securities would also be unfeasible, and management does not contemplate any
form of new public offering at this time.
In the event that the Company does need to raise capital, it would most
likely have to rely on the private sale of its securities. Such a private sale
would to available exemptions, if any applies. However, no private sales are
contemplated by the Company's management at this time. If a private sale of the
Company's securities is deemed appropriate in the future, management will
endeavor to acquire funds on the best terms available to the Company. However,
there can be no assurance that the Company will be able to obtain funding when
and if needed, or that such funding, if available, can be obtained on terms
reasonable or acceptable to the Company. Although not presently anticipated by
management, there is a remote possibility that the Company might sell its
securities to its management or affiliates.
In the event of a successful acquisition or merger, a finder's fee, in the
form of cash or securities of the Company, may be paid to persons instrumental
in facilitating the transaction. The Company has not established any criteria or
limits for the determination of a finder's fee, although most likely an
appropriate finder's fee will be negotiated between the parties, including the
potential business opportunity candidate, based upon economic considerations and
reasonable value as estimated and mutually agreed at that time. A finder's fee
would only be payable upon completion of the proposed acquisition or merger in
the normal case, and management does not contemplate any other arrangement at
this time. Management has not actively undertaken a search for, nor retention
of, any finder's fee arrangement with any person.
It is possible that a potential merger or acquisition candidate would have
its own finder's fee arrangement, or other similar business brokerage or
investment banking arrangement, whereupon the terms may be governed by a
pre-existing contract; in such case, the Company may be limited in its ability
to affect the terms of compensation, but most likely the terms would be
disclosed and subject to approval pursuant to submission of the proposed
transaction to a vote of the Company's shareholders.
Management cannot predict any other terms of a finder's fee arrangement at
this time. It would be unlikely that a finder's fee payable to an affiliate of
the Company would be proposed because of the potential conflict of interest
issues. If such a fee arrangement was proposed, independent management and
directors would negotiate the best terms available to the Company so as not to
compromise the fiduciary duties of the affiliate in the proposed transaction,
and the Company would require that the proposed arrangement would be submitted
to the shareholders for prior ratification in an appropriate manner.
Management does not contemplate that the Company would acquire or merge
with a business entity in which any affiliates of the Company have an interest.
Any such related party transaction, however remote, would be submitted for
approval by an independent quorum of the Board of Directors and the proposed
transaction would be submitted to the shareholders for prior ratification in an
appropriate manner. None of the Company's managers, directors, or other
affiliated parties have had any contact, discussions, or other understandings
regarding any particular business opportunity at this time, regardless of any
potential conflict of interest issues. Accordingly, the potential conflict of
interest is merely a remote theoretical possibility at this time.
Rights of Shareholders
It is presently anticipated by management that prior to consummating a
possible acquisition or merger, the Company will seek to have the transaction
ratified by shareholders in the appropriate manner. Most likely, this would
require a general or special shareholder's meeting called for such purpose,
wherein all shareholder's would be entitled to vote in person or by proxy. In
the notice of such a shareholder's meeting and proxy statement, the Company will
provide shareholders complete disclosure documentation concerning a potential
acquisition of merger candidate, including financial information about the
target and all material terms of the acquisition or merger transaction.
Competition
Because the Company has not identified any potential acquisition or merger
candidate, it is unable to evaluate the type and extent of its likely
competition. The Company is aware that there are several other public companies
with only nominal assets that are also searching for operating businesses and
other business opportunities as potential acquisition or merger candidates. The
Company will be in direct competition with these other public companies in its
search for business opportunities and, due to the Company's lack of funds, it
may be difficult to successfully compete with these other companies.
As of the date hereof, the Company does not have any employees and has no
plans for retaining employees until such time as the Company's business warrants
the expense, or until the Company successfully acquires or merges with an
operating business. The Company may find it necessary to periodically hire
part-time clerical help on an as-needed basis.
Facilities
The Company is currently using as its principal place of business the
residence of its President located in Salt Lake City, Utah. Although the Company
has no written agreement and pays no rent for the use of this facility, it is
contemplated that at such future time as an acquisition or merger transaction
may be completed, the Company will secure commercial office space from which it
will conduct its business. Until such an acquisition or merger, the Company
lacks any basis for determining the kinds of office space or other facilities
necessary for its future business. The Company has no current plans to secure
such commercial office space. It is also possible that a merger or acquisition
candidate would have adequate existing facilities upon completion of such a
transaction, and the Company's principal offices may be transferred to such
existing facilities.
Industry Segments
No information is presented regarding industry segments. The Company is
presently a development stage company seeking a potential acquisition of or
merger with a yet to be identified business opportunity. Reference is made to
the statements of income included herein in response to Part F/S of this Form
10-SB, for a report of the Company's operating history for the past two fiscal
years.
Item 2. Management's Discussion and Analysis or Plan of Operation
The Company is considered a development stage company with no assets or
capital and with no operations or income since inception. The costs and expenses
associated with the preparation and filing of this registration statement and
other operations of the Company have been paid for by a shareholder and officer
of the Company, specifically Darwin Long ,the President and a Director of the
Company. It is anticipated that the Company will require only nominal capital to
maintain the corporate viability of the Company and necessary funds will most
likely be provided by the Company's existing shareholders or its officers and
directors in the immediate future. However, unless the Company is able to
facilitate an acquisition of or merger with an operating business or is able to
obtain significant outside financing, there is substantial doubt about its
ability to continue as a viable corporation.
In the opinion of management, inflation has not and will not have a
material effect on the operations of the Company until such time as the Company
successfully completes an acquisition or merger. At that time, management will
evaluate the possible effects of inflation on the Company as it relates to its
business and operations following a successful acquisition or merger.
Plan of Operation
During the next twelve months, the Company will actively seek out and
investigate possible business opportunities with the intent to acquire or merge
with one or more business ventures. In its search for business opportunities,
management will follow the procedures outlined in Item I above. Because the
Company lacks finds, it may be necessary for the officers and directors to
either advance funds to the Company or to accrue expenses until such time as a
successful business consolidation can be made.
Management intends to hold expenses to a minimum and to obtain services on
a contingency basis when possible. Further, the Company's directors will defer
any compensation until such time as an acquisition or merger can be accomplished
and will strive to have the business opportunity provide their remuneration.
However, if the Company engages outside advisors or consultants in its search
for business opportunities, it may be necessary for the Company to attempt to
raise additional funds.
As of the date hereof, the Company has not made any arrangements or
definitive agreements to use outside advisors or consultants or to raise any
capital. In the event the Company does need to raise capital most likely the
only method available to the Company would be the private sale of its
securities. Because of the nature of the Company as a development stage company,
it is unlikely that it could make a public sale of securities or be able to
borrow any significant sum, from either a commercial or private lender. There
can be no assurance that the Company will be able to obtain additional funding
when and if needed, or that such funding, if available, can be obtained on terms
acceptable to the Company.
The Company does not intend to use any employees, with the possible
exception of part-time clerical assistance on an as-needed basis. Outside
advisors or consultants will be used only if they can be obtained for minimal
cost or on a deferred payment basis. Management is confident that it will be
able to operate in this manner and to continue its search for business
opportunities during the next twelve months.
Item 3. Description of Property
The information required by this Item 3 is not applicable to this Form
10-SB due to the fact that the Company does not own or control any material
property.
Item 4. Security Ownership of Certain Beneficial Owners and Management
The following table sets forth information, to the best knowledge of the
Company as of February 11, 2000, with respect to each person known by the
Company to own beneficially more than Five Percent (5%) of the Company's
outstanding common stock, each director of the Company and all directors and
officers of the Company as a group.
Name and Address Amount and Nature of Percent
Beneficial Owner Beneficial Ownership of Class
- ----------------- --------------------- ---------
Barnette, Adrieanne 20,000 6%
7805 S. Dolphin Circle
Salt Lake City, Utah 84121
Catuccio, Scott 20,000 6%
1050 W. 3000 S. #2025
Salt Lake City, Utah 84119 20,000 6%
*Heidelberger, Jon 20,000 6%
4066 Sagebrush Way
Salt Lake City, Utah 84121
*Heidelberger, Loretta 20,000 6%
4066 Sagebrush Way
Salt Lake City, Utah 84121
Koskella, Kathleen 20,000 6%
214 S. Hayes Avenue
Emmett, Idaho 83617
Morris, Jasper 30,000 9%
1999 S. 1000 E. #A
Salt Lake City, Utah 84105
Schreib, Deborah 20,000 6%
1188 S. 200 E.
Salt Lake City, Utah 84111
Trover, Ralph R. 20,000 6%
7805 S. Dolphin Circle
Salt Lake City, Utah 84121
VanDenberg, Daniel 20,000 6%
78 Colling Avenue
Rochelle Park, New Jersey
07662
Waldron, Tonya 20,000 6%
3112 Sunny Park Lane
West Valley City, Utah 84107
Williams, Anita 20,000 6%
3022 Immigration Pass
Boise, Idaho 83716
*Note: Jon and Lorretta Heidelberger are husband and wife. The Company has
been advised that each of the above persons known to the company to be a
shareholders of record has sole voting power over his or her shares.
ITEM 5
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
The Directors and Executive Officers of the Company are as follows:
POSITION
NAME AGE TITLE HELD SINCE
Darwin Long* 45 President/Director April 06, 1999
Jackie Long* 40 Sec./Treas./Director April 06, 1999
*Darwin and Jackie Long, husband and wife, have a combined interest in
the Company of 24,000 shares, approximately 7%.
All directors hold office until the next annual meeting of stockholders and
until their successors have been duly elected and qualified. There are no
agreements with respect to the election of directors. The Company has not
compensated its directors for service on the Board of Directors or any committee
thereof. As of the date hereof, no Director has accrued any expenses or
compensation. Officers are appointed annually by the Board of Directors and each
executive officer serves at the discretion of the Board of Directors. The
Company does not have any standing committees at this time.
No Director, Officer, affiliate or promoter of the Company has, within the
past five years, filed any bankruptcy petition, been convicted in or been the
subject of any pending criminal proceedings, nor is any such person the subject
or any order, judgment or decree involving the violation of any state or federal
securities laws.
The business experience of each of the persons listed above during the past
five years is as follows:
DARWIN LONG: DIRECTOR AND PRESIDENT
Darwin Long's business experience and expertise comes primarily from his
successful career as a contract Computer Network Administrator for several major
companies.
JACKIE LONG: DIRECTOR, TREASURER/SECRETARY
Jackie Long's business experience and expertise comes primarily from her
lengthy involvement in the Mortgage industry and Corporation Management.
Item 6. Executive Compensation
The Company has not had a bonus, profit sharing, or deferred compensation
plan for the benefit of its employees, officers or directors. The Company has
not paid any salaries or other compensation to its officers, directors or
employees for the years ended at December 31, 1999, December 31, 1998 and the
period July 13, 1994 (date of inception) to December 31, 1999.
Further, the Company has not entered into an employment agreement with any
of its officers, directors or any other persons and no such agreements are
anticipated in the immediate future.
It is intended that the Company's directors will defer any compensation
until such time as an acquisition or merger can be accomplished and will strive
to have the business opportunity provide their remuneration. As of the date
hereof, no person has accrued any compensation from the Company.
Item 7. Certain Relationships and Related Transactions
During the Company's last two fiscal years, there have not been any
transactions between the Company and any officer, director, nominee for election
as director, or any shareholder owning greater than five percent (5%) of the
Company's outstanding shares, nor any member of an individual stockholder's
immediate family.
Item 8. Description of Securities
Common Stock
The Company is authorized to issue 100,000,000 shares of common stock, Par
Value $0.001, of which 354,000 shares are issued and outstanding as of the date
hereof. All shares of common stock have equal rights and privileges with respect
to voting, liquidation and dividend rights.
Each share of common stock entitles the holder thereof to (i) one
non-cumulative vote for each share held of record on all matters submitted to a
vote of the stockholders; (ii) to participate equally and to receive any and all
such dividends as may be declared by the Board of Directors out of funds legally
available therefor; and (iii) to participate pro rata in any distribution of
assets available for distribution upon liquidation of the Company.
Stockholders of the Company have no pre-emptive rights to acquire
additional shares of common stock or any other securities. The common stock is
not subject to redemption and carries no subscription or conversion rights. All
outstanding shares of common stock are fully paid and non-assessable.
Preferred Stock
The Company does not have any preferred stock, authorized or issued.
PART II
Item 1. Market Price of and Dividends on the Registrant's Common Equity
and Other Shareholder Matters
No shares of the Company's common stock have previously been registered
with the Securities and Exchange Commission (the "Commission") or any state
securities agency or authority. The Company has made an application to the NASD
for the Company's shares to be quoted on the National Quotation Bureau's Pink
Sheets ("Pink Sheets"). The Company's application to the NASD consists of
current corporate information, financial statements and other documents as
required by Rule 15c2-11 of the Securities Exchange Act of 1934, as amended.
Inclusion on the "Pink Sheets" permits price quotations for the Company's shares
to be published by such service.
The Company's common shares are not currently quoted. The Company is not
aware of any established trading market for its common stock nor is there any
record of any reported trades in the public market in recent years. The
Company's common stock has never traded in a public market.
If and when the Company's common stock is traded in the Pink Sheet, most
likely the shares will be subject to the provisions of Section 15(g) and Rule
15g-9 of the Securities Exchange Act of 1934, as amended (the 'Exchange Act"),
commonly referred to as the "penny stock" rule. Section 15(g) sets forth certain
requirements for transactions in penny stocks and Rule 15g9(d)(1) incorporates
the definition of penny stock as that used in Rule 3a5l-l of the Exchange Act.
The Commission generally defines penny stock to be any equity security that
has a market price less than $5.00 per share, subject to certain exceptions.
Rule 3a5l-l provides that any equity security is considered to be a penny stock
unless that security is: registered and traded on a national securities exchange
meeting specified criteria set by the Commission; authorized for quotation on
The NASDAQ Stock Market; issued by a registered investment company; excluded
from the definition on the basis of price (at least $5.00 per share) or the
issuer's net tangible assets; or exempted from the definition by the Commission.
If the Company's shares are deemed to be a penny stock, trading in the
shares will be subject to additional sales practice requirements on
broker-dealers who sell penny stocks to persons other than established customers
and accredited investors, generally persons with assets in excess of $1,000,000
or annual income exceeding $200,000, or $300,000 together with their spouse. For
transactions covered by these rules, broker-dealers must make a special
suitability determination for the purchase of such securities and must have
received the purchaser's written consent to the transaction prior to the
purchase.
Additionally, for any transaction involving a penny stock, unless exempt,
the rules require the delivery, prior to the first transaction, of a risk
disclosure document relating to the penny stock market. A broker-dealer also
must disclose the commissions payable to both the broker-dealer and the
registered representative, and current quotations for the securities.
Finally, monthly statements must be sent disclosing recent price
information for the penny stocks held in the account and information on the
limited market in penny stocks. Consequently, these rules may restrict the
ability of broker dealers to trade and/or maintain a market in the Company's
common stock and may affect the ability of shareholders to sell their shares.
As of the date hereof, there were Twenty Four (24) holders of record of the
Company's common stock. As of the date hereof, the Company has issued and
outstanding 354,000 shares of common stock. Of this total, all shares were
issued in transactions more than two years ago and may be sold or otherwise
transferred without restriction pursuant to the terms of Rule 144 ("Rule 144")
of the Securities Act of 1933, as amended (the "Act"), unless held by an
affiliate or controlling shareholder of the Company.
Dividend Policy
The Company has not declared or paid cash dividends or made distributions
in the past, and the Company does not anticipate that it will pay cash dividends
or make distributions in the foreseeable future. The Company currently intends
to retain and reinvest future earnings, if any, to finance its operations.
Item 2. Legal Proceedings
The Company is currently not a party to any material pending legal
proceedings and no such action by, or to the best of its knowledge, against the
Company has been threatened.
Item 3. Changes in and Disagreements with Accountants
Item 3 is not applicable to this Form 10-SB.
Item 4. Recent Sales of Unregistered Securities
All other issues of securities by the Company were made more than three
years ago.
INDEMNIFICATION OF DIRECTORS AND OFFICERS
The Company's Articles and By-Laws provide for indemnification for
liability, including expenses incurred in connection with a claim of liability
arising from having been an officer or director of the Company for any action
alleged to have been taken or omitted by any such person acting as an officer or
director, not involving gross negligence or willful misconduct by such person.
Section 78.751 of the Nevada General Corporation Law allows the Company to
indemnify any person who was or is threatened to made party to any threatened,
pending, or completed action, suit or proceeding, by reason of the fact that he
or she is or was a director, officer, employee or agent of the Company, or is or
was serving at the request of the Company as a director, officer, employee, or
agent of any corporation, partnership, joint venture, trust or other enterprise.
The Company's By-Laws provide that such a person shall be indemnified and held
harmless to the fullest extent provided by Nevada law.
Transfer Agent
The Company has designated Interwest Transfer Company, Inc., 1981 E. Murray
Holladay Road, Holladay, Utah 84117, (801) 272-9294 its transfer agent.
PART F/S
Financial Statements and Supplementary Data
The Company's financial statements at December 31, 1999, and December 31,
1998 and the related statements of operations, stockholder's equity, and cash
flows for the years ended December 31, 1999, 1998, and 1997 and the period June
14, 1982 (date of inception) to December 31, 1999, have been examined to the
extent indicated in the reports by Andersen Andersen and Strong, L.C., Certified
Public Accountants, and have been prepared in accordance with generally accepted
accounting principles and pursuant to Regulation S-B as promulgated by the
Securities and Exchange Commission and are included herein in response to Part
F/S of this Form 10-SB.
<PAGE>
ITEM 5
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
GRANADA MINERAL PRODUCTS, INC.
(REGISTRANT)
/s/ Darwin Long
BY: _______________________
PRESIDENT AND DIRECTOR
DATED: 11th DAY OF FEBRUARY, 2000
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated on the 11th day of February, 2000.
/s/ Darwin Long
___________________________________
DARWIN LONG: President and Director
/s/ Jackie Long
____________________________________
JACKIE LONG: Director, Secretary and Chief Financial Officer
PART III
ITEM 1. INDEX TO EXHIBITS
THE FOLLOWING EXHIBITS ARE FILED WITH THIS REGISTRATION STATEMENT:
Exhibit No. Description
- ------------ -----------
3 (i) Articles of Incorporation
Certificate of Amendment of Articles of Incorporation
3 (ii) By-Laws
23 Consent of Independent Certified Public Accountant
27 Financial Data Schedule
GRANADA MINERAL PRODUCTS, INC.
FINANCIAL STATEMENTS AND REPORT
OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
DECEMBER 31, 1999, AND DECEMBER 31, 1998
<PAGE>
Board of Directors
Granada Mineral Products, Inc.
Salt Lake City, Utah
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We have audited the accompanying balance sheets of Granada Mineral
Products, Inc. (a development stage company) at December 31, 1999, and December
31, 1998, and the related statements of operations, stockholders' equity, and
cash flows for the years ended December 31, 1999, 1998, and 1997, and the period
July 13, 1994 (date of inception) to December 31, 1999. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the 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 balance sheet presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Granada Mineral Products,
Inc. at December 31, 1999, and December 31, 1998, and the results of operations,
and cash flows for the years ended December 31, 1999,1998, and 1997 and the
period July 13, 1994 (date of inception) to December 31, 1999, in conformity
with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company has suffered recurring
losses from operations from its inception and does not have the necessary
working capital for any future planned activity, which raises substantial doubt
about its ability to continue as a going concern. Management's plans in regard
to these matters are described in Note 4. These financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
/s/ Andersen Andersen and Strong, L.L.C.
- ----------------------------------------
Andersen Andersen and Strong, L.L.C.
Salt Lake City, Utah
January 17, 2000
GRANADA MINERAL PRODUCTS, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
December 31, 1999 and December 31, 1998
<TABLE>
<CAPTION>
Dec 31, Dec 31,
1999 1998
--------- ---------
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash $ - $ -
--------- ---------
Total Current Assets $ - $ -
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ - $ -
--------- ---------
Total Current Liabilities - -
--------- ---------
STOCKHOLDERS' EQUITY
Common stock
100,000,000 shares authorized, at $0.001 par
value; 334,000 shares issued and outstanding
on December 31, 1999; 300,000 on December 31,
1998 334 300
Capital in excess of par value 21,466 14,700
Deficit accumulated during the development stage (21,800) (15,000)
--------- ---------
Total Stockholders' Equity (deficiency) - -
--------- ---------
$ - $ -
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
GRANADA MINERAL PRODUCTS, INC.
( A Development Stage Company)
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999, 1998, and 1997 and the Period
July 13, 1994 (Date of Inception) to December 31, 1999
<TABLE>
<CAPTION>
Jul 13, 1994
Dec 31 Dec 31 Dec 31 to
1999 1998 1997 Dec 31, 1999
--------- ------- ------- ---------
<S> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ -
EXPENSES 6,800 - - 21,800
--------- ------- ------- ---------
NET LOSS $(6,800) $ - $ - $(21,800)
========= ======= ======= ========
NET LOSS PER COMMON
SHARE
Basic $(.02) $ - $ -
--------- ------- -------
AVERAGE OUTSTANDING
SHARES
Basic 319,800 300,000 300,000
--------- ------- -------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
GRANADA MINERAL PRODUCTS, INC.
(Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Period July 13, 1994 (Date of Inception)
to December 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK CAPITAL IN
---------------- EXCESS OF ACCUMULATED
SHARES AMOUNT PAR VALUE DEFICIT
------- ------- ---------- ---------
<S> <C> <C> <C> <C>
Balance July 13, 1994 (date of inception) - $ - $ - $ -
Issuance of common stock for cash 120,000 120 5,880 -
at $.05 - December 12, 1994
Issuance of common stock for cash 100,000 100 4,900 -
at $.05 - January 20, 1995
Issuance of common stock for cash
at $.05 - February 10, 1995 80,000 80 3,920 -
Net operating loss for the year ended
December 31, 1995 - - - (15,000)
------- --- ------ -------
BALANCE DECEMBER 31, 1998 300,000 300 14,700 (15,000)
Issuance of common stock for cash
at $.20 - April 8, 1999 4,000 4 796 -
Issuance of common stock for cash
at $.20 - August 14, 1999 30,000 30 5,970 -
Net operating loss for the year ended
December 31, 1999 - - - (6,800)
------- ------- --------- ---------
BALANCE DECEMBER 31, 1999 334,000 $ 334 $ 21,466 $(21,800)
------- ------- --------- ---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
GRANADA MINERAL PRODUCTS, INC.
(Development Stage Company)
STATEMENT OF CASH FLOWS
For the Years Ended December 31, 1999, 1998 and 1997
and the Period July 13, 1994 (Date of Inception) to December 31, 1999
<TABLE>
<CAPTION>
JUN 13, 1994
DEC 31 DEC 31 DEC 31 to
1999 1998 1997 DEC 31, 1999
--------- --------- ------- -------
CASH FLOWS FROM
OPERATING ACTIVITIES
<S> <C> <C> <C> <C>
Net loss $(6,800) $ - $ - $(21,800)
Adjustments to reconcile net loss to - - - -
net cash provided by operating
activities
Net Cash Used in Operations (6,800) - - (21,800)
--------- --------- ------- -------
CASH FLOWS FROM INVESTING
ACTIVITIES - - - -
--------- --------- ------- -------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of common stock
6,800 - - 21,800
--------- --------- ------- -------
Net Increase (Decrease) in Cash - - - -
Cash at Beginning of Period - - - -
--------- --------- ------- -------
Cash at End of Period $- $- $- $-
========= ========= ======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
GRANADA MINERAL PRODUCTS, INC.
(Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on July
13, 1994 with authorized common stock of 1,000,000 shares at a par value of
$0.01. On September 13, 1999 the authorized capital stock was increased to
100,000,000 shares with a par value of $0.001.
This report has been prepared using a par value of $.001 from inception.
The Company is in the development stage and has been engaged in the
activity of seeking and developing mining properties and was inactive after
1995.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
- -------------------
The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
- ----------------
The Company has not adopted a policy regarding payment of dividends.
Income Taxes
- -------------
At December 31, 1999, the Company had a net operating loss carry forward of
$21,800. The tax benefit from the loss carry forward has been fully offset by a
valuation reserve because the use of the future tax benefit is undeterminable
since the Company has no operations. The net operating loss will expire starting
in 2016 through 2020.
Earnings (Loss) Per Share
- ----------------------------
Earnings (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding in accordance with FASB No. 128.
Financial Instruments
- ----------------------
The carrying amounts of financial instruments are considered by management
to be their estimated fair values.
<PAGE>
- ------
GRANADA MINERAL PRODUCTS, INC.
(Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Estimates and Assumptions
- ---------------------------
Management uses estimates and assumptions in preparing financial statements
in accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Actual results could vary from the estimates that were assumed in
preparing these financial statements.
3. RELATED PARTY TRANSACTIONS
The statement of changes in stockholder's equity shows 334,000 shares of
common stock outstanding of which 74,000 shares were issued to related parties.
4. GOING CONCERN
The Company will need additional working capital to be successful in its
planned operations.
Continuation of the Company as a going concern is dependent upon obtaining
additional working capital and the management of the Company has developed a
strategy, which it believes will accomplish this objective through equity
funding, and long term financing, which will enable the Company to operate for
the coming year.
There can be no assurance that the Company can be successful in this
effort.
ARTICLES OF INCORPORATION
-------------------------
OF
--
GRANADA MINERAL PRODUCTS, INC.
-----------------------------------------------------
The undersigned incorporator being a natural person more than eighteen (18)
years of age acting as the sole incorporator of the above-named corporation (the
"Corporation") hereby adopts the following articles of incorporation for the
Corporation:
ARTICLE I
NAME
The name of the Corporation shall be: Granada Mineral Products, Inc.
ARTICLE II
PERIOD OF DURATION
The Corporation shall continue in existence perpetually unless sooner
dissolved according to law.
ARTICLE III
PURPOSES AND POWERS
The purposes for which the Corporation is organized are: to engage, without
qualification, in any lawful act or activity for which corporations may be
organized under the laws of the State of Nevada.
ARTICLE IV
AUTHORIZED SHARES
The amount of the total authorized capital stock the corporation shall have
the authority to issue is One Million shares consisting of common stock having a
par value of $0.01 per share.
Each share of Common Stock issued and outstanding, shall be entitled to one
vote on all matters. Dividends shall be declared and paid out only out of funds
legally available therefore. Shares of such stock may be issued for such
consideration and for such corporate purposes as the Board of Directors may from
time to time determine. Fully paid stock of this corporation shall not be liable
to any further call or assessment.
ARTICLE V
LIMITATION OF LIABILITY
A director or officer of the Corporation shall have no personal liability
to the Corporation or its stockholders for damages for breach of fiduciary duty
as a director or officer, except for damages for breach of fiduciary duty
resulting from (a) acts or omissions which involve intentional misconduct,
fraud, or a knowing violation of the law, or (b) the payment of dividends in
violation of section 78.300 of the Revised Statutes as it may from time to time
be amended or any successor provision thereto.
ARTICLE VI
PRINCIPLE [sic] OFFICE AND RESIDENT AGENT
The address of the Corporation's principal office in the State of Nevada is
650 Whitney Ranch Drive #1611; Henderson, Nevada 89014. The address of its
resident agent, S. Hunter Cannon [,] is 650 Whitney Ranch Drive #1611;
Henderson, Nevada 89014.
Either the registered office or registered agent may be changed as provided
by law.
ARTICLE VII
AMENDMENTS
The Corporation reserves the right to amend, alter, change, or repeal all
or any of the provisions contained in these articles of incorporation from time
to time in accordance with the laws of the State of Nevada, and all rights
conferred on stockholders herein are granted subject to this reservation.
ARTICLE VIII
ADOPTION AND AMENDMENT OF BYLAWS
The initial bylaws of the Corporation shall be adopted by the board of
directors. The power to alter, amend, or repeal the bylaws or adopt new bylaws
shall be vested in the board of directors, but the stockholders of the
Corporation may also alter, amend, or repeal the bylaws or adopt new bylaws. The
bylaws may contain any provisions for the regulation or management of the
affairs of the Corporation not inconsistent with the laws of the state of Nevada
now or hereafter existing.
ARTICLE IX
DIRECTORS
The governing board of the Corporation shall be known as the board of
directors. The number of directors may be increased or decreased from time to
time in the manner provided in the bylaws of the Corporation, except that at no
time shall there be less than three nor more than nine directors. The original
board of directors shall consist of three persons. the name and address of each
person who is to serve as a director until the first annual meeting of
stockholders and until his or her successor is elected shall qualify is as
follows:
Name Address
- ---- -------
George D. Fehr 10 Exchange Place, Suite 610
Salt Lake City, Utah 84111
Greg G. Bradt 11458 Willow View Way
Sandy, Utah 84094
Jerry M. Young 2255 N. University Parkway,
Suite 15
Provo, Utah 84604
ARTICLE X
INCORPORATOR
The name and address of the sole incorporator signing these article of
incorporation is as follows:
Name Address
- ---- -------
Jerry M. Young 10 Exchange Place, Suite 610
Salt Lake City, Utah 84111
The undersigned, being the sole incorporator of the Corporation herein
before named, hereby makes and files these articles of incorporation, declaring
that the facts herein are true.
DATED this 11th day of July, 1994
/s/ Jerry M. Young
------------------
JERRY M. YOUNG
[Notarized] /s/ Ann Maycock
---------------
NOTARY PUBLIC
ANN MAYCOCK
310 South Main, Suite 308
Salt Lake City, Utah 84101
My commission expires August 4, 1997
CERTIFICATE OF AMENDMENT OF ARTICLES OF INCORPORATION
OF GRANADA MINERAL PRODUCTS, INC.
We the undersigned, Darwin L. Long, President and Jackie Long, Secretary of
Granada Mineral Products, Inc., do hereby certify: that the Board of Directors
of said corporation at a meeting duly convened, held on the 13th day of
September, 1999 adopted a resolution to amend the original articles as follows:
Article IX which presently reads as follows:
ARTICLE NINE
Directors
The governing board of the Corporation shall be known as the board of
directors. The number of directors may be increased or decreased from time to
time in the manner provided in the bylaws of the Corporation, except that at no
time shall there be less than three nor more than nine directors. The original
board of directors shall consist of three persons. the name and address of each
person who is to serve as a director until the first annual meeting of
stockholders and until his or her successor is elected shall qualify is as
follows:
Name Address
- ---- -------
George D. Fehr 10 Exchange Place, Suite 610
Salt Lake City, Utah 84111
Greg G. Bradt 11458 Willow View Way
Sandy, Utah 84094
Jerry M. Young 2255 N. University Parkway,
Suite 15
Provo, Utah 84604
Is hereby amended to read as follows:
ARTICLE NINE
Directors
The Directors are hereby granted the authority to do any act on behalf of
the Corporation as may be allowed by law. Any action taken in good faith, shall
be deemed appropriate and in each instance where the Business Corporation Act
provides that the Director may act in certain instances where the Articles of
Incorporation so authorize, such action by the Directors, shall be deemed to
exist in these Articles and the authority granted by said Act shall be imputed
hereto without the same specifically having been enumerated herein.
The Board of Directors may consist of from one (1) to nine (9) directors,
as determined, from time to time, by the then existing Board of Directors.
Article IV which presently reads as follows:
ARTICLE FOUR
Authorized Shares
The amount of the total authorized capital stock the corporation shall have
the authority to issue is One Million shares consisting of common stock having a
par value of $0.01 per share.
Each share of Common Stock issued and outstanding, shall be entitled to one
vote on all matters. Dividends shall be declared and paid out only out of funds
legally available therefore. Shares of such stock may be issued for such
consideration and for such corporate purposes as the Board of Directors may from
time to time determine. Fully paid stock of this corporation shall not be liable
to any further call or assessment.
Is hereby amended to read as follows:
ARTICLE FOUR
Authorized Capital Stock
The total authorized capital stock of the Corporation is 100,000,000 shares
of Common Stock, with a par value of $1.001 (1 mil). All stock when issued shall
be deemed fully paid and non-assessable. No cumulative voting, or any matter to
which Stockholders shall be entitled to vote, shall be allowed for any purpose.
The authorized stock of this corporation may be issued at such time, upon
such terms and conditions and for such consideration as the Board of Directors
shall, from time to time, determine Shareholders shall not have pre-emptive
rights to acquire unissued shares of the stock of this Corporation.
THE FOLLOWING NEW ARTICLES ARE HEREBY ADOPTED
---------------------------------------------
ARTICLE ELEVIN [sic]
COMMON DIRECTORS
As provide [sic] by Nevada Revised Statutes 78.140, without repeating the
section in full here, the same is adopted and no contract or other transaction
between this Corporation and any of its officers, agents or directors shall be
deemed void or voidable solely for that reason. The balance of the provisions of
the code section cited, as it now exists, allowing such transactions, is hereby
incorporated in this Article as though more fully set-forth, and such Article
shall be read and interpreted to provide the greatest latitude in its
application.
ARTICLE TWELVE
LIABILITY OF DIRECTORS AND OFFICERS
No Director, Officer or Agent, to include counsel, shall be personally
liable to the Corporation or its Stockholder for monetary damage for any breach
shall be presumed that in accepting the position as an Officer, Director, agent
or Counsel, said individual relied upon and acted in reliance upon the terms and
protections provided by applicable law, for acts or ommissions which involve
intentional misconduct, fraud or a knowing violation of law, or for the payment
of dividends in violation of NRS 78.300.
ARTICLE THIRTEEN
ELECTION REGARDING NRS 78.378 - 78.3793 AND 78.411 - 78.444
This corporation shall NOT be governed by nor shall the provisions of NRS
78.378 through and including 78.3793 and NRS 78.411 through and including 78.444
in any way whatsoever affect the management, operation or be applied to this
Corporation. This Article may only be amended by a majority vote of not less
than 90% of the then issued and outstanding shares of the Corporation. A quorum
of outstanding shares for voting on an Amendment to this article shall not be
met unless 95% or more of the issued and outstanding shares are present at a
properly called and noticed meeting of the Stockholders. The super-majority
set-forth in this Article only applies to any attempted amendment to this
Article.
The number of shares of the corporation outstanding and entitled to vote on
an amendment to the Articles of Incorporation is 490,000; that the said
change(s) and amendment have been consented to and approved by a majority vote
of the stockholders holding at least a majority of each class of stock
outstanding and entitled to vote thereon.
/s/ Darwin L. Long
------------------
DARWIN L. LONG, PRESIDENT
/s/ Jackie Long
---------------
JACKIE LONG, SECRETARY/TREASURER
State of Utah
County of Salt Lake
On September 13, 1999, personally appeared before me, a Notary Public,
Darwin L. Long and Jackie Long who acknowledged that they executed the above
instrument.
/s/ Lynette Noerring
--------------------
NOTARY PUBLIC
BYLAWS
OF
GRANADA MINERAL PRODUCTS, INC.
(A NEVADA CORPORATION)
ARTICLE I
OFFICES
Section 1: PRINCIPAL OFFICES
The principal office for the transaction of the business of the Corporation
is fixed and located at 7808 South Dolphin Circle, Salt Lake City, Utah 84121.
The Board of Directors may, from time to time, change the Principal Office from
one location to another as may be necessary.
The Secretary shall note any change of the location of the Principal Office
on these By-Laws contiguous this section, or this section may be amended to
identify the new location.
Section 2: OTHER OFFICES
The Board of Directors may, at any time, establish branch or subordinate
offices at any place or places.
ARTICLE II
MEETINGS OF SHAREHOLDERS
Section 1:ANNUAL MEETING
The annual meeting of shareholders shall be held on the last day of January
of each year at 10:00 AM or at such other date and time that shall be scheduled
by the Board of Directors to the extent that such scheduling is in compliance
with the laws of the State of Nevada.
At this meeting, Directors shall be elected, and any other proper business
within the power of the shareholders may be transacted. In the event that an
annual meeting is not held in any year, the Board of Directors, as then
constituted, shall continue to perform their duties until such annual or special
meeting is properly called and they, or any of them, are re-elected or replaced.
Section 2. PLACE OF MEETINGS
All annual shareholders meetings shall be held at the Corporation's
Principal Office, or at an alternate location selected by the Board of Directors
upon notification to the shareholders as required by Section 4 of these
Articles.
All other shareholders meetings shall be held either at the Principal
Office or any other place within or outside the State of that may be designated
either by the Board of Directors in accordance with these Bylaws, or by the
written consent of all persons entitled to vote at the meeting, given either
before or after the meeting and filed with the Secretary of the Corporation.
Section 3: SHAREHOLDER ACTION WITHOUT MEETING
Pursuant to Nevada law, any action which could be taken at a meeting of the
shareholders may be taken without a meeting if a written consent thereto is
signed by shareholders holding at least a majority of the voting power of the
Corporation, except that if a different proportion of voting power is required
for such action at a meeting, then that proportion of written consent shall be
required.
Section 4:SPECIAL MEETINGS
A special shareholders meeting, for any purpose whatsoever, may be called
at any time by the President, any Vice-President, the Board of Directors, or one
or more shareholders holding not less than one-tenth (1/10) of the voting power
of the Corporation.
Section 5: NOTICE OF MEETINGS
Written notices specifying the place, day, and hour of the meeting and, in
the case of a special meeting, the general nature of the business to be
transacted, shall be given not less than ten (10) days, nor more than fifty (50)
days before the date of the meeting.
Such notice must be given personally or by mail or by other means of
written communication, addressed to the shareholder at the address appearing on
the books of the corporation, or given by the shareholder to the Corporation for
the purpose of notice.
If no such address appears or is given by a shareholder of record entitled
to vote at the meeting, notice is given in the at the place where the Principal
Executive Office of the Corporation is located, or by publication at least once
in a newspaper of general circulation in the county where the Principal
Executive Office is located.
Section 6: WAIVER OF NOTICE
A shareholder may waive notice of any annual or special meeting by signing
a written notice of waiver either before or after the date of such meeting.
Section 7: QUORUM
The presence in person or by proxy of the holders of at least fifty-one
percent (51%) of the outstanding shares entitled to vote at any meeting of the
shareholders shall constitute a quorum for the transaction of business.
The shareholders 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 shareholders to leave less than a quorum, any action taken
(other than adjournment) is approved by at least a majority of the shares
required to constitute a quorum.
Section 8: PROXIES
Every person entitled to vote at a shareholders' meeting of the
Corporation, or entitled to execute written consent authorizing action in lieu
of a meeting, may do so either in person or by proxy executed in writing by the
shareholder or by his or her duly authorized attorney-in-fact. No proxy shall be
valid after eleven (11) months from the date of its execution unless otherwise
provided in the proxy.
Section 9: VOTING
Except as otherwise provided in the Articles of Incorporation, or by
agreement, or by the general Corporation law, shareholders at the close of
business on the record date are entitled to notice an to vote.
Section 10: LIST OF SHAREHOLDERS
The Secretary shall prepare, at least ten (10) days before every meeting of
shareholders, a complete list of the shareholders entitled to vote at the
meeting, arranged in alphabetical order, showing the address of each
shareholder, for any purpose germane to the meeting. This list shall be produced
and kept at the time and place of the meeting during the whole time thereof and
may be inspected by any shareholder present.
Section 11: INSPECTORS
At each meeting of shareholders, the Chairperson of the meeting may appoint
one or more Inspectors of Voting whose duty it shall be to receive and count the
ballots and make a written report showing the results of the balloting. The
Secretary of the Corporation may perform this function.
Section 12: ELECTION BY BALLOT
Election for Directors need not be by ballot unless a shareholder demands
election by ballot at the meeting and before the voting begins. The candidates
receiving the highest number of votes, up to the number of directors to be
elected, shall be elected. No cumulative voting shall be allowed.
Section 13: ORDER OF BUSINESS
The order of business at the annual meeting of the shareholders, insofar as
possible, and at all other meetings of shareholders, shall be as follows:
1. Call to Order
2. Proof of Notice of Meeting
3. Reading and disposing of any unapproved minutes
4. Reports of Officers
5. Reports of Committees
6. Election of Directors
7. Disposition of unfinished business
8. Disposition of new business
9. Adjournment
ARTICLE III
BOARD OF DIRECTORS
Section 1: GENERAL POWERS
Subject to the provisions of the Nevada Corporation Act, and any
limitations in the Articles of Incorporation, and any limitations in the
Articles of Incorporation and these Bylaws relating to actions required to be
approved by the shareholders 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.
Section 2: ENUMERATION OF DIRECTOR'S POWER
Without prejudice to these general rules, and subject to the same
limitation, the Board of Directors shall have the power to:
1. Select and remove all officers, agents and employees of the Corporation;
prescribe any powers and duties for them that are consistent with law, with the
Articles of Incorporation, and these Bylaws; fix their compensation; and require
from them security for faithful service.
2. 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 country and conduct
business within or outside the State of; and designate any place within or
outside the State of for the holding of any shareholders meeting or meetings,
including Annual Meetings.
3. Adopt, make, or use a Corporate Seal; prescribe the forms of
Certificates of Stock; and alter the form of the Seal and Certificate.
4. Authorize the issuance of shares of stock of the Corporation on any
lawful terms, in consideration of moneys paid, labor done, services actually
rendered, debts or securities cancelled, or tangible or intangible property
actually received.
5. Engage in and/or adopt employment agreements, contracts, or other
employment contracts with independent contractors, companies, government
agencies, or individuals.
Section 3: NUMBER, TENURE, QUALIFICATION AND ELECTIONS
To the extent allowed by the Articles of Incorporation, the Board of
Directors shall be fixed from time to time by resolution of the Board, but shall
not be less than three (3), nor shall it exceed five (5). Directors need not be
shareholders of the Corporation.
The number of Directors may be increased beyond five (5) only by approval
of the outstanding shares of the Corporation.
The Directors of the Corporation shall be elected at the Annual Meeting of
the shareholders and shall serve until the next annual or special meeting is
properly called and they, or any of them, are re-elected and until their
successors have been elected and qualified.
Section 4: VACANCIES
A vacancy, or vacancies, on the Board of Directors shall be deemed to exist
in the event of the death, resignation, or removal of any Director, or if the
Board of Directors, by resolution, declares vacant that office of a Director who
has been declared of unsound mind by an order of court, or convicted of a
felony, or if the authorized number of Directors is increased, the shareholders
fail at any meeting of shareholders at which the Director or Directors are
elected, to elect the number of Directors to be voted for at that meeting.
Any Director may resign effective immediately upon giving written notice to
the Chairperson of the Board, the President, the Secretary, or the Board of
Directors, unless a notice specifies a later time for the resignation to become
effective. 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.
Vacancies on the Board of Directors may be filled by a majority of the
remaining Directors, whether or not less than a quorum, or by a sole remaining
Director, except that a vacancy created by the removal of a Director by the vote
or written consent of the shareholders or by court order may be filled only by
the vote or written consent of the shareholders or by court order may be filled
only by the vote of a majority of the shares entitled to vote represented at a
duly held meeting at which a quorum is present, or by the unanimous written
consent of the shareholders of the outstanding shares entitles to vote.
The shareholders 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, except that filling a vacancy created by a removal of a
Director shall require the written consent of the holders of all outstanding
shares entitled to vote.
Each Director so elected shall hold office until the next annual meeting of
the shareholders and until a successor has been elected and qualified.
Section 5: ANNUAL MEETING
Immediately following each annual meeting of shareholders, the Board of
Directors may hold a regular meeting at the place that the annual meeting of
shareholders was held or at any other place that shall have been designated by
the Board of Directors for the purpose of organization, any desired election of
officers, and the transaction of other business. Notice of these regular
meetings shall not be required.
Section 6: NOTICE OF MEETINGS
Notice need not be given of regular meetings of the Board of Directors, nor
is it necessary to give notice of adjourned meetings. Notice of special meetings
shall be in writing by mail at least four (4) days prior to the date of the
meeting or forty-eight (48) hours' notice delivered personally.
Section 7: PLACE OF MEETINGS AND MEETINGS BY TELEPHONE
Regular and special meetings of the Board of Directors may be held at any
place within or outside the State of that has been designated from time to time
by the Board. In the absence of such designation, meetings shall be held at the
principal executive office of the Corporation. Any meeting, regular or special,
may be held by conference in the meeting can hear one another, and all such
Directors shall be present in person at the meeting.
Section 8: SPECIAL MEETINGS
The Chairman of the Board or the President, any Vice President, or the
Secretary may call special meetings of the Board of Directors, for any purpose
or purposes, at any time.
Section 9: MAJORITY OF QUORUM
A majority of the authorized number of Directors constitutes a quorum of
the Board for the transaction of business except as hereinafter provided.
Section 10: TRANSACTIONS OF BOARD OF DIRECTORS
Except as otherwise provided in the Articles or these Bylaws, or by law,
every act or decision done or made by a majority of the Directors present at a
duly held meeting at which a quorum is present, is the act of the Board,
provided, however, that any meeting at which a quorum was initially present may
continue to transact business notwithstanding the withdrawal of Directors if any
action taken is approved by a least a majority of the required quorum for such
meeting.
Section 11: ADJOURNMENT
A majority of Directors present at any meeting, whether or not a quorum is
present, may adjourn the meeting to another time and place. If the meeting is
adjourned for more that twenty-four (24) hours, notice of the adjournment to
another time and place must be given prior to the time of the adjourned meeting
to the Directors who were present at the time of the adjournment.
Section 12: CONDUCT OF MEETINGS
The Chairman of the Board, or if there is no such officer, the President,
or in his or her absence, any Director selected by the Director present, shall
preside at the meeting of the Board of Directors. The Secretary of the
Corporation, or in the Secretary's absence any person appointed by the Presiding
Officer, shall act as Secretary of the Board.
Section 13: 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 unanimous vote
of the Board of Directors. Such written consent (s) shall be filed with the
minutes of the proceedings of the Board.
Section 14: 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.
Section 15: APPROVAL OF BONUSES FOR DIRECTORS AND OFFICERS
No bonuses of share in the earnings or profits of the Corporation shall be
paid to any of the officers, Directors, or employees of the Corporation except
as approved by the Board of Directors.
ARTICLE IV
OFFICERS
Section 1: OFFICERS
The officers of the Corporation shall be a President, a Vice-President, a
Secretary, and a Chief Financial Officer (Treasurer). The Corporation may also
have, at the discretion of the Board of Directors, a Chairman of the Board, one
or more Assistant Secretaries, one or more Assistant Treasurers, and such other
officers as may be appointed in accordance with the provisions of Section 3 of
this Article IV. The same person, except the offices of President and Secretary,
may hold any number of offices.
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 IV
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.
Section 3: SUBORDINATE OFFICERS
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 them 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
Subject to the rights, if any, of an officer under a contract of
employment, any officer may be removed, either with or without cause, by the
Board of Directors, at any regular or special meeting of the Board, or, except
in case of an officer chosen by the Board of Directors.
Any officer may resign at any time by giving written notice to the
Corporation. Any resignation shall take effect on the date of receipt of that
notice, or at any later time specified in that notice, unless otherwise
specified in that notice. Any resignation is without prejudice to the rights, if
any, of the corporation under any contract for 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 that office.
Section 6: PRESIDENT
Subject to such powers, if any, as may be given by the Bylaws or Board of
Directors to other officers of the Corporation, the President shall be the
General Manager and Chief Executive Officer of the Corporation and shall,
subject to the control of the Board of Directors, have general supervision,
direction, and control of the business and the officers of the Corporation. He
shall have the general powers and duties of management usually vested in the
officer 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.
Section 7: VICE PRESIDENT
In the absence or disability of the President, the 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
of the restrictions upon, the President. The sole duty of the Vice-President of
this Corporation shall be to function as a representative of the President in
such case as the President may be absent or disabled. The Vice-President may,
when not acting in the representative capacity of the President, hold other
positions and be assigned other duties within the Corporation.
Section 8: SECRETARY
The Secretary shall keep or cause to be kept, at the principal executive
office or such other place as the Board of Directors may direct, a book of
minutes of all meetings and actions of Directors, committees of Directors and
shareholders, with the time and place of holding, whether regular or special,
and, if special, how authorized, the notice given, the names of those present at
Director meetings or committee meetings, the number of shares present or
represented at shareholders meetings, and the proceedings.
The Secretary shall keep, or cause to be kept, at the principal executive
office or at the officer of the Corporation shall give, or cause to be given,
notice of all meetings of the shareholders, of the Board of Directors, and of
committees of the Board of Directors required by the Bylaws or by law to be
given.
The Secretary shall keep the seal of the Corporation, if one is adopted, in
safe custody and shall have such other powers and perform such other duties as
may be prescribed by the Board of Directors or by the Bylaws.
Section 9: CHIEF FINANCIAL OFFICER
The Chief Financial Officer (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 book of accounts shall at all reasonable
times be opened to inspection by any Director.
The Chief Financial Officer shall deposit all monies and other valuables in
the name and to the credit of the Corporation with such depositories as may be
designated by the Board 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 Chief Financial Officer and of the financial condition of the
Corporation, and shall have other powers and perform other such duties as may be
prescribed by the Board of Directors or the Bylaws.
ARTICLE V
INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES, AND OTHER AGENTS
Section 1: AGENTS, PROCEEDINGS, AND EXPENSES
For the purpose of this Article, "agent" means any person who is, or was, a
Director, Officer, employee, or other agent of this Corporation, or is, or was,
serving at the request of this Corporation as a Director, officer, employee, or
agent of another foreign or domestic corporation, partnership, joint venture,
trust or other enterprise, or was a Director, officer, employee, or agent of a
foreign or domestic corporation which was a predecessor corporation of this
corporation or of another enterprise at the request of such predecessor
corporation; "proceeding" means any threatened, pending or completed action or
proceeding, whether civil, criminal, administrative, or investigative; and
"expenses" includes, without imitation, attorney's fees and any expenses of
establishing a right to indemnification under Section 4 or Section 5 of this
Article.
Section 2: ACTIONS OTHER THAN BY THE CORPORATION
This Corporation shall defend and indemnify any person who was or is a
party, or is threatened to be made a party, to any proceeding (other than an
action by or in the right of this Corporation) by reason of the fact that such
person is or a was an agent of this Corporation, against expenses, judgments,
fines, settlements and other amounts actually and reasonably incurred in
connection with such proceeding if that person acted in good faith and in a
manner that that person reasonably believed to be in the best interests if this
corporation and, in the case of a criminal proceeding, had no reasonable cause
to believe the conduct of that person was unlawful. The termination of any
proceeding by judgment, order, settlement, conviction, or upon a pleas of nolo
contendere or its equivalent shall not, of itself, create a presumption that the
person did not act in good faith and in a manner which the person reasonably
believed to be in the best interest of this Corporation or that the person had
reasonable cause to believe that the person's conduct was lawful.
Section 3: ACTIONS BY THE CORPORATION
This Corporation shall indemnify any person who was or is a party, or is
threatened to be made a party, to any threatened, pending or completed action by
or in the right of this Corporation to procure a judgment in its favor by reason
of the fact that said person is or was an agent, counsel to the Corporation,
against expenses actually and reasonably incurred by that person in connection
with the defense or settlement of that action if that person acted in good
faith, in a manner that that person believed to be in the best interests of this
Corporation and with such care, including reasonably inquiry, that such action
would not be deemed grossly negligent on the part of such agent ( for the
purposes of this Article V, the term "agent" shall mean and include all
officers, directors, counsel, and employees). Indemnification shall be available
under this Section 3, conditioned only upon the following:
(a) In respect of any claim, issue or matter as to which that person may be
liable to this Corporation, the duty and obligation of the Corporation to defend
and indemnify such agent shall be absolute unless and only to the extent that
the court in which that action was brought shall determine, upon application,
that in view of all the circumstances of the case, said person acted with
reckless disregard equated to gross negligence with regard to the specific
claims made against said person;
(b) The indemnification provisions set-forth herein are to be interpreted
as broadly as possible in their application to any officer, director, counsel or
agent of the corporation, to include accountants and counsel for the
corporation. Such interpretation shall treat these provisions as continuing
contractual obligations of the corporation and subsequent modification shall not
limit the effect of these provisions as applied to the covered classes who were
so covered, at any time following adoption hereof.
Section 4: SUCCESSFUL DEFENSE BY AGENT
To the extent that an agent of this corporation has been successful on the
merits or otherwise in defense of any proceeding referred to in Section 2 or 3
of this Article, or in defense of any claim, issue, or matter therein, the agent
shall be indemnified against expenses actually and reasonably incurred by the
agent in connection therewith. An agent shall be deemed successful if the Court
fails to make a specific finding regarding the degree of fault as set forth in
Section 3, hereinabove.
Section 5: REQUIRED APPROVAL
Except as provided in Section 4 of this Article, any indemnification under
this Article shall be made by this Corporation only if authorized in the
specific case on a determination that indemnification of the agent is proper in
the circumstances because the agent is proper in the circumstances because the
agent has met the applicable standard of conduct set forth in Section 2 or 3 of
this Article, by:
(a) A majority vote of a quorum consisting of Directors who are not parties
to the proceeding;
(b) Approval by the affirmative vote of a majority of the shares of this
corporation entitled to vote represented at a duly held meeting at which a
quorum is present or by written consent of holders of a majority of the
outstanding shares entitled to vote; or
(c) The court in which the proceeding is or was pending, on application
made by this corporation or the agent or the attorney or other person rendering
services in connection with the defense, whether or not such application by the
agent, attorney or other person is opposed by this Corporation.
Section 6: ADVANCE OF EXPENSES
Expenses incurred in defending any proceeding may be advanced by this
Corporation before the final disposition of the proceeding on receipt of an
understanding by or on behalf of the agent to repay the amount of the advance
unless it shall be determined ultimately that the agent is entitled to be
indemnified as authorized in this Article.
Section 7: OTHER CONTRACTUAL RIGHTS
Nothing contained in this Article shall affect any right to indemnification
to which persons other than Directors and officers of this Corporation or any
subsidiary hereof may be entitled to contract or otherwise.
Section 8: INSURANCE
Upon and in the event of a determination by the Board of Directors of this
Corporation to purchase such insurance, this Corporation shall purchase and
maintain insurance on behalf of any agent of the corporation against any
liability asserted against or incurred by the agent in such capacity or arising
out of the agent's status as such whether or not this corporation would have the
power to indemnify the agent against that liability under the provisions of this
section.
Section 9: FIDUCIARIES OF CORPORATE EMPLOYEE BENEFIT PLAN
This Article does not apply to any proceeding against any trustee,
investment manager, or other fiduciary of any employee benefit plan in that
person's capacity as such, even though that person may also be an agent of the
Corporation as defined in Section 2 of this Article. Nothing contained in this
Article shall limit any right to indemnification to which such trustee,
investment manager, or other fiduciary may be entitled by contract or otherwise,
which shall be enforceable to the extent permitted by applicable law other than
this Article.
ARTICLE VI
STOCK CERTIFICATES
Section 1: FORM
The shares of the Corporation shall be represented by certificates signed
by the President or Vice President, and the Chief Financial Officer or the
Secretary of the Corporation. Any or all of such signatures may be facsimiles if
countersigned by a transfer agent, or registered by a registrar, other than the
Corporation itself or an employee of the Corporation. Each such certificate
shall also state:
(a) The name of the record holder of the shares represented by such
certificate;
(b) The number of shares represented thereby;
(c) A designation of any class or series of which such shares are a part;
(d) That the shares have a par value of $0.001;
(e) That the corporation is organized under the laws of the State of
Nevada.
(f) Any restrictions applicable to the shares shall be so designated on the
face thereof.
Section 2:TRANSFERS
Transfer of shares of the Corporation shall be made in the manner set forth
in the Nevada Uniform Commercial Code. The Corporation shall maintain stock
transfer books, and any transfers shall be registered thereon only on request
and surrender of the stock certificate representing the transferred shares, duly
endorsed; if transfer is by Power of Attorney, the Power of attorney shall be
deposited with the Secretary of the Corporation or with the designated Transfer
Agency.
Section 3: LOST, DESTROYED, AND STOLEN CERTIFICATES
No certificate or shares of stock in the Corporation shall be issued in
place of any certificate alleged to have been lost, destroyed, stolen, or
mutilated except on production of such evidence and provision of such indemnity
to the Corporation as the Board of Directors may prescribe.
ARTICLE VII
CORPORATE ACTIONS
Section 1: CONTRACTS
The Board of Directors may authorize any officer or officers, or any agent
or agents of the Corporation, to enter into any contract or to execute and
deliver any instrument in the name of and on behalf of the Corporation, and such
authority may be general or confined to specific instances.
Section 2: LOAN
No loan shall be made by the Corporation to its officers or Directors, and
no loan shall be made by the Corporation secured by its shares. No loan shall be
made or contracted on behalf of the Corporation and no evidences of indebtedness
shall be issued in its name unless authorized by resolution of the Board of
Directors. Such authority may be general or confined to specific instances.
Section 3: CHECKS, DRAFTS, OR ORDERS
All checks, drafts, or other orders for the payment of money by or to the
Corporation and all notes and other evidence of indebtedness issued in the name
of the Corporation shall be signed by such officer or officers, agent or agents
of the Corporation, and in such manner as shall be determined by resolution of
the Board of Directors.
Section 4: BANK DEPOSITS
All funds of the Corporation and otherwise employed, shall be deposited to
the credit of the Corporation in such banks, trust companies, or other
depositories as the Board of Directors may select.
ARTICLE III
MISCELLANEOUS
Section 1: INSPECTION OF CORPORATE RECORDS
The stock ledger and minute books may be kept by any information storage
device if readily convertible into legible form. Any shareholder of record, in
person or by an attorney or agent who presents proof of such position with
guaranteed signature on such proof, may, upon written demand under oath, stating
purpose, inspect for any proper purpose, the stock ledger, list of shareholders
and make written extracts of the same. Such extracts shall be made in writing by
the individual preparing or requesting such inspection and such inspection shall
be during normal business hours and shall not be made without at least five (5)
business days written notice thereof. Such notice, to be effective must be
received not at least five (5) business days prior to the proposed inspection
date, a signed receipt from the US Postal Service shall be proof of such notice
and the date of receipt.
Section 2: INSPECTION OF ARTICLES OF INCORPORATION AND BYLAWS
The original or a copy of the Articles of Incorporation and Bylaws of the
Corporation, as amended or otherwise altered to date, and certified by the
Secretary of the Corporation, shall at all times be kept at the principal
executive office of the Corporation. Such Articles and Bylaws shall be open for
inspection to all shareholders of record or holders of voting trust certificates
at all reasonable times during the business hours of the Corporation.
Section 3: FISCAL YEAR
The fiscal year of the Corporation shall begin on the first day of January
of each year and end at midnight on the last day of December of the same year or
as otherwise determined by the Board of Directors.
Section 4:CONSTRUCTION AND DEFINITION
Unless the context requires otherwise, the general provisions, rules of
construction, and definitions contained in the applicable Nevada Status which
shall govern the construction of these Bylaws.
Without limiting the foregoing, the masculine gender where used included
the feminine and neuter, the singular number includes the plural, and the plural
number includes the singular, "shall" is mandatory and "may" is permissive; and
"person" includes the Corporation as well as a natural person.
ARTICLE IX
AMENDMENTS TO BYLAWS
These Bylaws may be amended at any time by a majority vote of the Board of
Directors or by a majority vote of the outstanding shares held by the
shareholders of the corporation.
CERTIFICATE OF SECRETARY OF ADOPTION BY DIRECTORS
I HEREBY CERTIFY that I am the duly elected, qualified and acting Secretary
of the above-named Corporation and that the above and foregoing Bylaws were
adopted as the Bylaws of said Corporation on the date set forth above by a
majority of vote of the shareholders of said Corporation.
Date: 5/28/99
-------
/s/ Jackie Long
---------------------
JACKIE LONG
Secretary
Board of Directors
Granada Mineral Products, Inc.
Salt Lake City, Utah
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We have audited the accompanying balance sheet of Granada Mineral Products,
Inc. (a development stage company) at December 31, 1999, and December 31, 1998
and the statements of operations, stockholder's equity, and cash flows for the
years ended December 31, 1999, 1998, and 1997 and the period July 13, 1994 (date
of inception) to December 31, 1999. These financial statements in accordance
with Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants. /s/ Andersen Andersen and
Strong L.L.C.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company will need additional
working capital for its planned activity, which raises substantial doubt about
its ability to continue as a going concern. Management's plans in regard to
these matters are described in Note 4. These financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
Salt Lake City, Utah /s/ Andersen Andersen and Strong
January 17, 2000 --------------------------------
ANDERSEN ANDERSEN AND STRONG, L.C.
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