U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-SB
GENERAL FORM FOR REGISTRATION OF
SECURITIES OF SMALL BUSINESS ISSUERS
Under Section 12(b) Or 12(g) Of The Securities Act Of 1934
NuOasis Las Vegas, Inc.
(Name of Small Business Issuer in Its Charter)
Nevada 84-1235684
(State or Other Jurisdictions of (I.R.S Employer Identification No.)
Incorporation or Organization)
4695 MacArthur Court, #530, Newport Beach, California 92660
(Address of Principal Executive Offices) (Zip Code)
(949) 833-2094
(Issuer's Telephone Number, Including Area Code)
Securities to be registered under Section 12(b) of the Act: None
Securities to be registered under Section 12(g) of the Act:
Common Stock, par value $.001
(Title of Class)
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INFORMATION STATEMENT
NUOASIS LAS VEGAS, INC.
COMMON STOCK, PAR VALUE $.001
WE ARE NOT ASKING YOU FOR A PROXY
AND YOU ARE REQUESTED NOT TO SEND US A PROXY
THIS INFORMATION STATEMENT SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. ANY SUCH OFFERING MAY ONLY BE
MADE BY MEANS OF A SEPARATE PROSPECTUS PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT AND OTHERWISE IN COMPLIANCE WITH APPLICABLE LAW.
The date of this Information Statement is March 6, 2000
<PAGE>
PART I
ITEM 1. DESCRIPTION OF BUSINESS.
Business Development
NuOasis Las Vegas Inc. ("NuOasis Las Vegas" or "NULV") was incorporated in
Colorado in June 1993 under the name of Blackhawk Acquisition Corporation. In
June 1994, NuOasis Las Vegas amended its Articles of Incorporation to change its
name to NuOasis Las Vegas, Inc. In May 1998, NuOasis Las Vegas was merged into
NuOasis Las Vegas, Inc., a Nevada corporation, thus effecting a change in
corporate domicile. NuOasis Las Vegas is a wholly owned subsidiary of NuOasis
Resorts, Inc. ("NuOasis"), a publicly held company. Since its incorporation,
NuOasis Las Vegas has not conducted any significant operations.
Business of Issuer
NuOasis Las Vegas's activities to date have focused primarily on
incorporation and the identification of potential operating opportunities or
acquisition targets. NuOasis Las Vegas has not yet commenced principal
operations or earned significant revenues.
For future operations, NuOasis Las Vegas will attempt to become active and
seek potential operating businesses and business opportunities with the intent
to acquire or merge with such businesses. NuOasis Las Vegas 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. No representation is made or intended that NuOasis Las
Vegas will be able to carry out its activities profitably.
NuOasis Las Vegas is voluntarily filing its registration statement on Form
10-SB 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 NuOasis Las Vegas. In addition, management believes that this may
make NuOasis Las Vegas more attractive to an operating business opportunity as a
potential business combination candidate. As a result of filing its registration
statement, NuOasis Las Vegas is obligated to file with the Commission certain
interim and periodic reports including an annual report containing audited
financial statements. NuOasis Las Vegas 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 NuOasis Las Vegas will become
subject to the same reporting requirements as NuOasis Las Vegas upon
consummation of any such business combination. Thus, in the event that NuOasis
Las Vegas 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.
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Source of Business Opportunities
NuOasis Las Vegas 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. NuOasis Las Vegas may investigate and ultimately acquire
a venture that is it its preliminary or development stage, is already in
operation, or in various stages of its corporate existence or development.
Management cannot predict at this time the status or nature of any venture in
which NuOasis Las Vegas may participate. The most likely scenario for a possible
business arrangement would involve the acquisition of or merger with an
operating business which does not need additional capital, but which merely
desires to establish a public trading market for its shares. Management believes
that NuOasis Las Vegas 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 Criteria
Once NuOasis Las Vegas 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 analyses of
potential business opportunities. However, because of NuOasis Las Vegas's lack
of capital it may not have the necessary funds for a complete and exhaustive
investigation of any particular opportunity. Further, no member of management is
a professional business analyst and management will rely on its own business
judgment in formulating the types of businesses that NuOasis Las Vegas may
acquire. It is quite possible that management will not have any business
experience or expertise in the type of business engaged in by any potential
acquisition or merger candidate.
In evaluating such potential business opportunities, NuOasis Las Vegas will
consider, to the extent relevant to the specific opportunity, several factors
including potential benefits to NuOasis Las Vegas 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 NuOasis Las
Vegas has not located or identified any specific business opportunity to date,
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 NuOasis Las Vegas may involve new and
untested products, processes or market strategies, which may not ultimately
prove successful.
Presently, NuOasis Las Vegas 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 NuOasis Las Vegas participates in a specific business opportunity will
depend upon the nature of that opportunity, the respective needs and desires of
NuOasis Las Vegas 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,
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license, partnership, stock purchase, reorganization, merger or
consolidation. NuOasis Las Vegas may act directly or indirectly through an
interest in a partnership, corporation, or other form of organization, however,
NuOasis Las Vegas does not intend to participate in opportunities through the
purchase of minority stock positions.
Because NuOasis Las Vegas has not yet identified any potential acquisition
or merger candidate, it is unable to evaluate the type and extent of its likely
competition. NuOasis Las Vegas 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. NuOasis Las Vegas will be in direct competition with these other
public companies in its search for business opportunities and, due to NuOasis
Las Vegas's lack of funds, it may be difficult to successfully compete with
these other companies.
As of this date, NuOasis Las Vegas does not have any employees and has no
plans for retaining employees until such time as NuOasis Las Vegas's business
warrants the expense, or until NuOasis Las Vegas successfully acquires or merges
with an operating business.
NuOasis Las Vegas's office is located at 4695 MacArthur Court, Suite 530,
Newport Beach, CA 92660.
NuOasis Las Vegas will voluntarily send an annual report, including audited
financial statements, to its security holders.
NuOasis Las Vegas will file annual, quarterly and special reports, proxy
statements and other information with the Securities and Exchange Commission
(SEC). The public may read and copy materials we file with the SEC at the SEC's
Public Reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. The
public may obtain information on the operation of the Public Reference room by
calling the SEC at 1-800-SEC- 0330. The SEC maintains an Internet site that
contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC. The address of the
website is http://www.sec.gov.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
Plan of Operation
During the next twelve months, NuOasis Las Vegas will actively seek out and
investigate possible opportunities with the intent to acquire and merge with one
or more business ventures. In its search for business opportunities, management
will follow the procedures outlined in Item 1 above. Because NuOasis Las Vegas
lacks funds, it may be necessary for the officers and directors to either
advance funds to NuOasis Las Vegas 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.
Management's discretion is unrestricted, and NuOasis Las Vegas may
participate in any business whatsoever that may in the opinion of management
meet the business objectives discussed herein. Indeed, NuOasis Las Vegas may
effectuate a business combination with another business outside the United
States. NuOasis Las Vegas has not limited the scope of its search to a
particular region. NuOasis Las Vegas does not intend to utilize any notices or
advertisements in its search for business opportunities.
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NuOasis Las Vegas's officers and directors will be primarily responsible
for searching for an appropriate merger or acquisition candidate. However, to
the extent that the existing stockholders are aware of any potential business
acquisition candidates, they will also refer these to NuOasis Las Vegas. NuOasis
Las Vegas recognizes that as a result of its limited financial, managerial or
other resources, the number of suitable potential businesses that may be
available to it will be extremely limited. NuOasis Las Vegas's principal
business objective will be to seek long-term growth potential in the business in
which it participates rather than immediate, short-term earnings. In seeking to
attain its business objectives NuOasis Las Vegas will not restrict its search to
any particular industry. Rather, NuOasis Las Vegas may investigate businesses of
essentially any kind or nature, including but not limited to finance, high
technology, manufacturing, service, research and development, communications,
insurance, brokerage, transportation and others. Management may also seek to
become involved with other development stage companies or companies that could
be categorized as "financially troubled." At the present time, NuOasis Las Vegas
has not chosen the particular area of business in which it proposes to engage
and has not conducted any market studies with respect to business property or
industry.
As of the date hereof, NuOasis Las Vegas has not made any arrangements or
definitive agreements to use outside advisors or consultants to raise any
capital. In the event NuOasis Las Vegas does need to raise capital most likely
the only method available to NuOasis Las Vegas would be the private sale of its
securities. Because of the nature of NuOasis Las Vegas as a development stage
company, it is unlikely 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 NuOasis Las Vegas will be able to obtain additional
funding when and if needed, or that such funding, if available, can be obtained
on terms acceptable to NuOasis Las Vegas.
NuOasis Las Vegas does not intend to use any employees, with the exception
of part-time clerical assistance on an as-needed basis. Outside advisors,
attorneys or consultants will only be used if they can be obtained for a minimal
cost or for 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.
Although NuOasis Las Vegas does not own or control any material property,
NuOasis Las Vegas will maintain its business address at 4695 MacArthur Ct., Ste.
530, Newport Beach, CA 92660. NuOasis Las Vegas currently subleases these
offices from an affiliate, NuVen Advisors, LP ("NuVen"), as part of the Advisory
and Management Agreement with NuVen.
ITEM 4. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
(2) Name and Address (3) Amount and Nature
(1) Title of Class of Beneficial of Benificial (4) Percent
Owner Ownership Class
Common Stock NuOasis Resorts, Inc. 812,500 shares of 100%
4695 MacArthur Court $.001 par value
Suite 530
Newport Beach, CA 92660
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Preferred Stock NuOasis Resorts, Inc. 300,000 shares of 100%
4695 MacArthur Court $.001 par value
Suite 530
Newport Beach, CA 92660
ITEM 5. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS.
Identification of Directors and Executive Officers
NuOasis Las Vegas, pursuant to its Bylaws is authorized to maintain a three
to five (3-5) member Board of Directors, and executive officers as needed. The
directors and officers for fiscal 1999 were as follows:
Position
Name Held with NuOasis Las Vegas Age Dates of Service
- --------- ---------------------------- ------ ------------------------
Fred G. Luke Director, President 53 June 25, 1999 to present
Jon L. Lawver Director, Secretary 61 April 22, 1998 to present
All directors of NuOasis Las Vegas hold office until the next annual
meeting of shareholders and until their successors have been elected and
qualified. Vacancies in the Board of Directors are filled by the remaining
members of the Board until the next annual meeting of shareholders. The officers
of NuOasis Las Vegas are elected by the Board of Directors at its first meeting
after each annual meeting of NuOasis Las Vegas's shareholders and serve at the
discretion of the Board of Directors or until their earlier resignation or
death.
Business Experience
The following is a brief account of the business experience during the past
five years of each director, director nominee and executive officer of NuOasis
Las Vegas, including principal occupations and employment during that period and
the name and principal business of any corporation or other organization in
which such occupation and employment were carried on.
Fred G. Luke
Mr. Fred G. Luke has been a director and an officer of NuOasis Las Vegas,
Inc. since June 1993. Mr. Luke has more than twenty-nine years of experience in
domestic and international financing and management of private and publicly held
companies. Since 1982, Mr. Luke has provided consulting services and has served,
for brief periods lasting usually not more than six months, as Chief Executive
Officer and/or Chairman of the Board of various publicly held and privately held
companies in conjunction with financial and corporate restructuring services. In
addition to his position with NuOasis Las Vegas, Mr. Luke currently serves as
Chairman and President of NuVen, an affiliate. Mr. Luke received a Bachelor of
Arts Degree in Mathematics from California State University, San Jose in 1969.
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Jon L. Lawver
Mr. Lawver has served as President and Director of NuOasis Las Vegas since
June 1999. Mr. Lawver has been President and director of the Fantastic Foods
International, Inc., a wholly owned subsidiary of NuOasis Resorts Inc., since
June 1993. Mr. Lawver has twenty-two (22) years of experience in the area of
bank financing where he has assisted companies in locating financing for small
to medium size companies primarily for expansion requirements. While assisting
companies with their financing requirements, Mr. Lawver has been under
consulting contracts through J L. Lawver, Corp., a financial consulting firm,
which he formed in 1973, after an 11-year career with Bank of America, NT&SA
(the "Bank"). He began his employment with the Bank in l961 and ended his
employment in 1972 as Branch Manager of three of the Bank's offices. Since 1988,
Mr. Lawver has also served as president and director of Eurasia Finance &
Development Corp., a private finance and equipment leasing company and has
served as officer and director of Virtual Enterprises, Inc. (formerly The Toen
Group, Inc.), a transitional stage of the multimedia industry. Mr. Lawver has a
Bachelor of Science degree from the Widener University and has completed
graduate courses with the American Institute of Banking and University of
California at Los Angeles.
Involvement in Certain Legal Proceedings
During the past five years, no director or officer of NuOasis Las Vegas
has:
(1) Filed or has filed against him a petition under the federal bankruptcy
laws or any state insolvency law, nor has a receiver, fiscal agent or
similar officer been appointed by a court for the business or property of
such person, or any partnership in which he was a general partner, or any
corporation or business association of which he was an executive officer
at or within two years before such filings.
(2) Been convicted in a criminal proceeding;
(3) Been the subject of any order, judgment, or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining such person from, or otherwise
limiting his involvement in any type of business, securities or banking
activities;
(4) Been found by a court of competent jurisdiction in a civil action, the
SEC or the Commodity Futures Trading Commission ("FTC") to have violated
any federal or state securities or commodities law, which judgment has not
been reversed, suspended, or vacated.
Compliance with Section 16(a) of the Exchange Act
Section 16(a) of the Securities Exchange Act of 1934 (the "Exchange Act")
requires NuOasis Las Vegas's directors and officers and persons who own more
than 10 percent of NuOasis Las Vegas's equity securities, to file reports of
ownership and changes in ownership with the SEC. Directors, officers and greater
than ten-percent shareholders are required by SEC regulation to furnish NuOasis
Las Vegas with copies of all Section 16(a) reports filed.
Based solely on its review of the copies of the reports it received from
persons required to file, NuOasis Las Vegas believes that during fiscal 1999,
all filing requirements applicable to its officers, directors and greater than
ten-percent shareholders were complied with.
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ITEM 6. EXECUTIVE COMPENSATION.
Officers do not receive compensation for their service.
ITEM 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
In January 1998, the Company entered into an Advisory and Management Agreement
(the "Agreement") with NuVen Advisors, Inc., an entity owned by officers of the
Company and officers of NuOasis. Pursuant to the terms of the Agreement, the
Company is required to pay $3,000 per month, plus expenses, in exchange for
NuVen Advisors, Inc.'s assistance in the formulation of possible acquisition
strategies, and the management of financial and general and administrative
matters. In addition, the Company is required to pay a fee equal to 5% of the
value of each business opportunity (as defined) introduced by NuVen Advisors,
Inc. The Agreement has an initial term of five years, but was canceled
effective July 1, 1999 and was replaced with a revised agreement described
below. In connection with the Agreement, the Company has recorded $36,000 and
$18,000 of management and consulting fees, which are included in the fiscal 1999
and 1998 statements of operations and comprehensive income (loss), respectively.
The agreement was terminated by written mutual consent on or about June 30,
1999.
Effective July 1, 1999, NuOasis Las Vegas entered into an Advisory and
Management Agreement (the "Agreement") with NuVen Advisors, LP, an entity owned
by Fred G. Luke and Jon L. Lawver, officers of NuOasis Las Vegas and officers of
NuOasis. Pursuant to the terms of the Agreement, NuOasis Las Vegas is required
to pay $3,500 per month, plus expenses, in exchange for NuVen Advisors, Limited
Partnership's assistance in the formulation of possible acquisition strategies,
and the management of financial and general and administrative matters. In
addition, NULV is required to pay a fee equal to 10% of the asset value or
investment made in NULV resulting from NuVen Advisors, LP's efforts, and a fee
equal to 5% of the proceeds received by the Company in connection with a sale of
its assets. In addition, NULV granted a fully vested option to NuVen Advisors,
LP to purchase 500,000 shares of NULV's common stock at $0.50 per share. The
Agreement has an initial term of five years, but shall be automatically extended
on an annual basis, unless terminated by either party.
As of June 30, 1999, the Company had $79,339 due from NuOasis. The Company
also had $37,745 due to NuVen Advisors Inc., an entity that is owned by officers
of NuOasis and the Company. Such amounts do not bear interest, are
uncollateralized and have no stated repayment terms, except for the note
receivable due from NuOasis.
During the year ended June 30, 1999, the Company exchanged 200,000 shares
of NuOasis common stock with NuVen Advisors, Inc. for a reduction of amounts
owed of $6,240.
ITEM 8. DESCRIPTION OF SECURITIES.
NuOasis Las Vegas is authorized to issue, as of the date hereof, Seventy
Five Million (75,000,000) shares of $.001 par value common stock and Twenty Five
Million (25,000,000) shares of $.001 par value preferred stock, of which
approximately 812,500 shares of common stock are presently issued and
outstanding and 300,000 shares of preferred stock are presently issued and
outstanding, and owned beneficially and of record by NuOasis Resorts, Inc.
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PART II
ITEM 1. MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT'S COMMON EQUITY AND
OTHER SHAREHOLDER MATTERS.
There is currently no public market for NuOasis Las Vegas common stock.
ITEM 2. LEGAL PROCEEDINGS.
There is no litigation pending or threatened by or against NuOasis Las Vegas.
ITEM 3. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS.
NuOasis Las Vegas has had no changes and/or disagreements with its accountants.
ITEM 4. RECENT SALES OF UNREGISTERED SECURITIES.
N/A
ITEM 5. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Under Nevada law, a corporation may indemnify its officers, directors,
employees and agents under certain circumstances, including indemnification of
such person against liability under the Securities Act of 1933. A true and
correct copy of Section 78.7502 of Nevada Revised Statutes that addresses
indemnification of officers, directors, employees and agents is attached hereto
as Exhibit 12.
In addition, Section 78.037 of the Nevada Revised Statutes and NuOasis Las
Vegas's Articles of Incorporation and Bylaws provide that a director of this
corporation shall not be personally liable to the corporation or its
stockholders for monetary damages due to breach of fiduciary duty as a director
except for liability (a) for acts or omissions which involve intentional
misconduct, fraud or a knowing violation of law; or (b) for the payments of
distribution in violation of Nevada Revised Statute 78.300.
The effect of these provisions may be to eliminate the rights of NuOasis
Las Vegas and its stockholders (through stockholders' derivative suit on behalf
of NuOasis Las Vegas) to recover monetary damages against a director for breach
of fiduciary duty as a director (including breaches resulting from negligent or
grossly negligent behavior) except in the situations described in clauses (a) -
(b) of the preceding paragraph.
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PART F/S
The following financial statements are attached to this report and filed as
a part thereof:
Index to Financial Statements..........................................F-1
Independent Auditors' Report...........................................F-2
Balance Sheets.........................................................F-3
Statements of Operations and Comprehensive Income (Loss)...............F-4
Statements of Shareholders Equity......................................F-5
Statements of Cash Flows...............................................F-6
Notes to Financial Statements..........................................F-7
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PART III
Item 1. Index to Exhibits.
3.1 Articles of Incorporation of NuOasis Las Vegas, Inc.
3.2 By-laws of NuOasis Las Vegas, Inc.
4.1 Form of Common Stock Certificate
10.1 Advisory Agreement with NuVen Advisors, Limited Partnership
23.1 Consent of Independent Auditors
27 Financial Data Schedule
99.1 Additional Exhibits [Nevada Revised Statutes Section 78.7502]
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SIGNATURES
Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, NuOasis Las Vegas has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly authorized.
NuOasis Las Vegas, Inc.
Date: March 6, 2000 By: /s/ Fred G. Luke
Fred G. Luke
President & Director
By: /s/ Jon Lawver
Jon Lawver
Secretary, Principal Accounting Officer
and Director
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NUOASIS LAS VEGAS, INC.
(A Development Stage Enterprise)
Index to Financial Statements
Description Page
Independent Auditors' Report
Balance Sheets as of December 31, 1999 (unaudited)
and June 30, 1999...................................................F-3
Statements of Operations and Comprehensive Income (Loss) for the
Six Months Ended December 31, 1999 and 1998 (unaudited), the
Years Ended June 30, 1999 and 1998, and the Period from
Inception, June 10, 1993, Through December 31, 1999 (unaudited).....F-4
Statements of Stockholder's Equity (Deficit) for the
Six Months Ended December 31, 1999 (unaudited), Years Ended
June 30, 1999 and 1998, and the Period from Inception,
June 10, 1993,Through December 31, 1999 (unaudited).................F-5
Statements of Cash Flows for the Six Months Ended
December 31, 1999 and 1998 (unaudited), the
Years Ended June 30, 1999 and 1998, and
the Period from Inception, June 10, 1993,
Through December 31, 1999 (unaudited)...............................F-6
Notes to Financial Statements..........................................F-7
F-1
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INDEPENDENT AUDITORS' REPORT
Board of Directors and Stockholder
NuOasis Las Vegas, Inc.
(A Development Stage Enterprise)
Newport Beach, California
We have audited the accompanying balance sheet of NuOasis Las Vegas, Inc.
(A Development Stage Enterprise) (the "Company") as of June 30, 1999, and the
related statements of operations and comprehensive income (loss), stockholder's
equity (deficit) and cash flows for each of the years in the two- year period
then ended. 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 audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
As discussed in Note 1, the Company's statements of operations and
comprehensive income (loss), stockholder's equity (deficit) and cash flows for
the period from inception, June 10, 1993, through December 31, 1999, have not
been audited and accordingly, we do not express an opinion thereon.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Company as of June 30,
1999, and the results of its operations and its cash flows for each of the years
in the two-year period then ended, in conformity with generally accepted
accounting principles.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 1 to the
financial statements, the Company has no operations and limited liquid
resources. Such matters raise substantial doubt about the Company's ability to
continue as a going concern. Management's plans regarding those matters are also
described in Note 1. The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
/s/ Haskell & White LLP
HASKELL & WHITE LLP
Irvine, California
November 18, 1999
F-2
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NUOASIS LAS VEGAS, INC.
(A Development Stage Enterprise)
Balance Sheets
<TABLE>
<CAPTION>
December 31, 1999
ASSETS (unaudited) June 30, 1999
Current assets:
<S> <C> <C>
Cash $ 93 $ 93
TOTAL ASSETS $ 93 $ 93
LIABILITIES AND STOCKHOLDER'S EQUITY
(DEFICIT)
Current liabilities:
Due to affiliate (Notes 2 and 5) $ 58,745 $ 37,745
Commitments and contingencies (Note 5)
Stockholder's equity (deficit) (Note 3):
Common stock, $.001 par value;
75,000,000 shares authorized;
812,500 shares issued and outstanding 813 813
Preferred stock, $.001 par value;
25,000,000 shares authorized;
300,000 shares issued and outstanding 300 300
Additional paid-in-capital 213,245 213,245
Receivable from stockholder (79,339) (79,339)
Deficit accumulated during the
developmental stage (193,671) (172,671)
Total stockholder's equity (deficit) (58,652) (37,652)
TOTAL LIABILITIES AND STOCKHOLDER'S
EQUITY (DEFICIT) $ 93 $ 93
</TABLE>
See accompanying notes to financial statements.
F-3
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NUOASIS LAS VEGAS, INC.
(A Development Stage Enterprise)
Statements of Operations and Comprehensive Income (Loss)
<TABLE>
<CAPTION>
For the Period
from Inception,
For the Six Months Ended June 10, 1993,
December 31, Through
1999 1998 For the Years Ended June 30, December 31, 1999
(unaudited) (unaudited) 1999 1998 (unaudited)
<S> <C> <C> <C> <C> <C>
Operating expenses:
Management and consulting fees (Note 5) $ 21,000 $ 27,360 $ 43,360 $ 18,000 $ 84,360
General and administrative expenses - 143 143 3,600 10,101
Total operating expenses - 27,503 45,503 21,600 94,461
Other expenses (income):
Loss on sale of marketable equity securities - 103,791 103,791 - 103,791
Interest income - (4,581) (4,581) - (4,581)
Total other expenses (income) - 99,210 99,210 - 99,210
Loss before income tax provision (21,000) (126,713) (144,713) (21,600) (193,671)
Income tax provision - - - - -
Net loss (21,000) (126,713) (144,713) (21,600) (193,671)
Other comprehensive (loss) income:
Unrealized holding loss arising during the period - - - (53,000) (53,000)
Reclassification adjustment - 53,000 53,000 - 53,000
Comprehensive loss $ (21,000) $ (73,713) $ (91,713) $ (74,600) $ (193,671)
Weighted average number of common shares outstanding 812,500 812,500 812,500 812,500 812,500
Basic and diluted loss per common share $ (0.03) $ (0.16) (0.18) (0.03) $ (0.24)
</TABLE>
See accompanying notes to financial statements
F-4
<PAGE>
NUOASIS LAS VEGAS, INC.
(A Development Stage Enterprise)
Statements of Stockholder's Equity (Deficit)
For the Six Months Ended December 31, 1999 (unaudited), the
Years Ended June 30, 1999 and 1998,
and the Period From Inception, June 10, 1993,
Through December 31, 1999 (unaudited)
<TABLE>
<CAPTION> Accumulated
Common Common Preferred Preferred Additional Receivable Comprehensive
Stock Stock Stock Stock Paid-In from Income Accumulated
Shares Amount Shares Amount Capital Stockholder (Loss) Deficit Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Initial capitalization (unaudited) 812,500 $ 813 - $ - $ 9,187 $ - $ - $ - $ 10,000
Net loss from inception,
June 10, 1993, through
June 30, 1996 (unaudited) - - - - - - - (6,358) (6,358)
Balance at July 1, 1996 and
June 30, 1997 812,500 813 - - 9,187 - - (6,358) 3,642
Issuance of stock for marketable
equity securities and note
receivable - - 300,000 300 204,058 (76,358) - - 128,000
Unrealized loss on marketable
equity securities - - - - - - (53,000) - (53,000)
Net loss for the year ended
June 30, 1998 - - - - - - - (21,600) (21,600)
Balance at June 30, 1998 812,500 813 300,000 300 213,245 (76,358) (53,000) (27,958) 57,042
Reclassification adjustment
related to disposition of
marketable equity securities - - - - - - 53,000 - 53,000
Accrued interest receivable - - - - - (2,981) - - (2,981)
Net loss for the year ended
June 30, 1999 - - - - - - - (144,713) (144,713)
Balance at June 30, 1999 812,500 813 300,000 300 213,245 (79,339) - (172,671) (37,652)
Net loss for the six months
ended December 31, 1999
(unaudited) - - - - - - - (21,000) (21,000)
Balance at December 31, 1999
(unaudited) 812,500 $ 813 300,000 $ 300 $213,245 $ (79,339) $ - $(193,671)$ (58,652)
</TABLE>
See accompanying notes to financial statements.
F-5
<PAGE>
NUOASIS LAS VEGAS, INC.
(A Development Stage Enterprise)
Statements of Cash Flows
<TABLE>
<CAPTION>
For the Period
From Inception,
For the Six Months For the Years June 10, 1993,
Ended December 31, Ended June 30, Through
1999 1998 1999 1998 December 31, 1999
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (21,000) $ (126,713) $ (144,713) $ (21,600) $ (193,671)
Adjustment to reconcile net loss to
net cash used in operating activities:
Loss on disposition of marketable
equity securities - 103,791 103,791 - 103,791
Consulting services received in exchange
for marketable equity securities - 9,360 9,360 - 9,360
Accrued interest receivable - (2,981) (2,981) - (2,981)
Net cash used by operating activities (21,000) (16,543) (34,543) (21,600) (83,501)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposition of
marketable equity securities - 8,609 8,609 - 8,609
Net cash provided by investing activities - 8,609 8,609 - 8,609
CASH FLOWS FROM FINANCING ACTIVITIES:
Initial capitalization - - - - 10,000
Net increase in due to affiliates 21,000 7,934 25,985 21,600 64,985
Net cash provided by financing activities 21,000 7,934 25,985 21,600 74,985
Net increase in cash - - 51 - 93
Cash, beginning of period 93 42 42 42 -
Cash, end of period $ 93 $ 42 93 42 $ 93
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ - $ - $ - $ - $ -
Income taxes $ - $ - $ - $ - $ -
Non-cash investing and financing activities:
Marketable equity securities, net of
unrealized loss, and note receivable
received for preferred stock (Note 3) $ - $ - $ - $ 151,358 $ 151,358
Marketable equity securities exchanged
for reduction in amounts owed to affiliate
(Note 2) $ - $ 6,240 $ 6,240 $ - $ 6,240
</TABLE>
See accompanying notes to financial statements.
F-6
<PAGE>
NUOASIS LAS VEGAS, INC.
(A Development Stage Enterprise)
Notes to Financial Statements
December 31, 1999 (unaudited)
and June 30, 1999
1. Description of Business and Summary of Significant Accounting Policies
Description of Business and Basis of Presentation
NuOasis Las Vegas, Inc. (the "Company") was incorporated in Colorado in
June 1993. In May 1998, the Company was merged into a Nevada corporation with
the same name. The Company is a wholly owned subsidiary of NuOasis Resorts, Inc.
("NuOasis"s), a publicly held company. Since its incorporation, the Company has
not conducted any significant operations.
The Company's activities to date have focused primarily on incorporation
activities and the identification of potential operating opportunities or
acquisitions targets. Since the Company has not yet commenced any principle
operations, and has not yet earned significant revenues, the Company is
considered to be a development stage enterprise as of December 31, 1999 and June
30, 1999.
Unaudited Financial Information
The accompanying interim financial statements as of December 31, 1999 and
the six months ended December 31, 1999 and 1998 are unaudited but include all
adjustments, consisting of only normal recurring adjustments, which management
considers necessary to present fairly, in all material respects, the financial
position and results of operations and cash flows for the six months ended
December 31, 1999 and 1998. Certain information and footnote disclosures
normally included in the annual financial statements prepared in accordance with
generally accepted accounting principles have been omitted. Results of the six
months ended December 31, 1999 are not necessarily indicative of the results for
the entire year.
In the opinion of the Company's management, the accompanying unaudited
financial statements for the period from inception, June 10, 1993, through
December 31, 1999, include all adjustments necessary for a fair presentation of
the results of operations and cash flows.
Management Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Marketable Equity Securities
As of June 30, 1998, the Company owned 1,000,000 shares of restricted
common stock of its parent, NuOasis (Note 3). Management classified these equity
securities as available-for-sale based on its intent to exchange the equity
securities for other assets. In accordance with SFAS No. 115, these equity
securities were presented in the June 30, 1998 balance sheet as current assets
at their estimated fair market values. At June 30, 1998, the Company recorded an
unrealized loss on these securities of $53,000, as their carrying values
exceeded the equity securities' estimated fair market value, which was
determined by considering factors such as the closing price of NuOasis' common
stock on June 30, 1998, and trading restrictions on the securities. During the
year ended June 30, 1999, the Company disposed of all of its shares of
restricted common stock of NuOasis, and recorded a loss on sale of marketable
equity securities aggregating $103,791.
F-7
<PAGE>
NUOASIS LAS VEGAS, INC.
(A Development Stage Enterprise)
Notes to Financial Statements (continued)
December 31, 1999 (unaudited)
and June 30, 1999
1. Description of Business and Summary of Significant Accounting
Policies (continued)
Loss Per Share
SFAS No. 128, "Earnings Per Share," requires the disclosure of "basic" and
"diluted" earnings (loss) per share. Basic earnings (loss) per share are
computed by dividing net income (loss) by the weighted average number of common
shares outstanding during each period. Diluted earnings (loss) per share is
similar to basis earnings (loss) per share except that the weighted average
number of common shares outstanding is increased to reflect the dilutive effect
of potential common shares, such as those issuable upon the exercise of stock
options or warrants, and the conversion of preferred stock, as if they had been
issued.
For both of the years ended June 30, 1999 and 1998 and for the period from
inception, June 10, 1993, through December 31, 1999, there is no difference
between basic and diluted loss per common share as the Company incurred a net
loss in each of these periods.
Income Taxes
The Company accounts for income taxes in accordance with SFAS No. 109,
"Accounting for Income Taxes," which requires the use of the "liability method"
of accounting for income taxes. Accordingly, deferred tax assets and
liabilities, are determined based on the difference between the financial
statement and tax bases of assets and liabilities, using enacted tax rates in
effect for the year in which the differences are expected to reverse. Current
income taxes are based on the year's income taxable for federal and state income
tax reporting purposes.
Recent Accounting Standards
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income." This Statement establishes standards for the reporting and display of
comprehensive income and its components (revenues, expenses, gains and losses)
in an entity's financial statements. This statement requires an entity to
classify items of other comprehensive income by their nature in a financial
statement and display the accumulated balance of other comprehensive income
separately from retained earnings and additional paid-in-capital in the equity
section of a statement of financial position. In accordance with the provisions
of this statement, the Company has adopted SFAS No. 130 in the accompanying
financial statements.
In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of
an Enterprise and Related Information." This statement requires public
enterprises to report financial and descriptive information about its reportable
operating segments, and establishes standards for related disclosures about
products and services, geographic areas, and major customers. As of June 30,
1999 and 1998, management determined that the Company had only one reportable
operating segment.
F-8
<PAGE>
NUOASIS LAS VEGAS, INC.
(A Development Stage Enterprise)
Notes to Financial Statements (continued)
December 31, 1999 (unaudited)
and June 30, 1999
1. Description of Business and Summary of Significant
Accounting Policies (continued)
Going Concern and Management's Plans
The Company has not commenced significant operations, and has limited
liquid resources. Such matters raise substantial doubt about the Company's
ability to continue as a going concern. Management's plans with respect to these
conditions are to continue searching for additional sources of capital and new
operating opportunities. In the interim, the Company will continue operating
with minimal overhead, and key administrative and management functions will be
provided by consultants, NuOasis or NuVen Advisors, Inc. (Note 5). Accordingly,
the accompanying financial statements have been presented under the assumption
the Company will continue as a going concern.
2. Related Party Transactions
As of June 30, 1999, the Company had $79,339 due from NuOasis (Note 3). The
Company also had $37,745 due to NuVen Advisors Inc., an entity that is owned by
officers of NuOasis and the Company. Such amounts do not bear interest, are
uncollateralized and have no stated repayment terms, except for the note
receivable due from NuOasis discussed in Note 3. The Company has an Advisory and
Management Agreement with NuVen Advisors, Inc., that is described in Notes 5 and
6.
During the year ended June 30, 1999, the Company exchanged 200,000 shares
of NuOasis common stock with NuVen Advisors, Inc. for a reduction of amounts
owed of $6,240.
During the year ended June 30, 1998, the Company wrote-off $3,600 due from
an entity affiliated through common ownership.
3. Equity Transactions
Issuance of Preferred Stock
In March 1998, the Company issued 300,000 shares of its undesignated
Preferred Stock to NuOasis. In exchange for the 300,000 shares of undesignated
Preferred Stock, the Company received 1,000,000 shares of NuOasis' common stock
and a $76,358 note receivable. As of June 30, 1999, the note receivable
outstanding, plus accrued interest of $2,981, aggregated $79,339. The note
receivable bears interest at 6%, is uncollateralized and is due in April 2001.
Stock Split
In connection with the merger discussed in Note 1, the Company effected an
81.25 for one common stock split. Related common stock and per share amounts
have been retroactively adjusted in the accompanying financial statements.
4. Income Taxes
Because the Company has substantially no assets of liabilities at June 30,
1999, and has conducted no significant operations to date, the Company has
recorded no deferred tax assets or liabilities, and has recorded no provision
for income taxes in the accompanying financial statements. As of June 30, 1999,
the Company has approximately $169,000 and $163,000 of federal and state net
operating loss carryforwards, which begin to expire in 2008 and 1999,
respectively.
F-9
<PAGE>
NUOASIS LAS VEGAS, INC.
(A Development Stage Enterprise)
Notes to Financial Statements (continued)
December 31, 1999 (unaudited)
and June 30, 1999
4. Income Taxes (Continued)
The Tax Reform Act of 1986 contains certain provisions which may
substantially limit the availability of the net operating loss carryforwards if
there is a greater than 50% change in ownership during a three- year period. The
limitation is based on the value of the Company on the date that the change in
ownership occurs, and the ultimate realization of any loss carryforwards is
dependent on the extent of the limitation, and the future profitability of the
company.
5. Commitments and Contingencies
Year 2000
The Company does not believe that the impact of the year 2000 computer
issue will have a significant impact on its operations or financial position.
Furthermore, the Company does not believe that it will be required to
significantly modify its internal computer systems. However, if internal systems
do not correctly recognize date information in the year 2000, there could be an
adverse impact on the Company's operations. Furthermore, there can be no
assurance that another entity's failure to ensure year 2000 capability would not
have an adverse effect on the Company.
Advisory and Management Agreement
In January 1998, the Company entered into an Advisory and Management
Agreement (the "Agreement") with NuVen Advisors, Inc., an entity owned by
officers of the Company and officers of NuOasis. Pursuant to the terms of the
Agreement, the Company is required to pay $3,000 per month, plus expenses, in
exchange for NuVen Advisors, Inc.'s assistance in the formulation of possible
acquisition strategies, and the management of financial and general and
administrative matters. In addition, the Company is required to pay a fee equal
to 5% of the value of each business opportunity (as defined) introduced by NuVen
Advisors, Inc. The Agreement has an initial term of five years, but was canceled
effective July 1, 1999 and was replaced with a revised agreement described in
Note 6. In connection with the Agreement, the Company has recorded $36,000 and
$18,000 of management and consulting fees, which are included in the fiscal 1999
and 1998 statements of operations and comprehensive income (loss), respectively.
The agreement was terminated by written mutual consent on or about June 30,
1999.
6. Subsequent Event
Effective July 1, 1999, the Company entered into a revised Advisory and
Management Agreement (the "Revised Agreement") with NuVen Advisors, Limited
Partnership, an entity owned by officers of the Company and officers of NuOasis.
Pursuant to the terms of the Revised Agreement, the Company is required to pay
$3,500 per month, plus expenses, in exchange for NuVen Advisors, Limited
Partnership's assistance in the formulation of possible acquisition strategies,
and the management of financial and general and administrative matters. In
addition, the Company is required to pay a fee equal to 10% of the asset value
or investment made in the Company resulting from NuVen Advisors, Limited
Partnership's efforts, and a fee equal to 5% of the proceeds received by the
Company in connection with a sale of its assets. In addition, the Company
granted a fully vested option to NuVen Advisors, Limited Partnership to purchase
500,000 shares of the Company's common stock at $0.50 per share. The Revised
Agreement has an initial term of five years, but shall be automatically extended
on an annual basis, unless terminated by either party.
F-10
EXHIBITS
EXHIBIT 3.1
ARTICLES OF INCORPORATION
OF
NuOASIS LAS VEGAS INC.
* * * * *
FIRST: The name of the corporation is:
NuOasis Las Vegas Inc.
SECOND: Its registered office in the State of Nevada is located at 4001
South Decatur Blvd., Suite #37-130, Las Vegas Nevada 89103. The name of its
resident agent at that address is Fred Graves Luke.
THIRD: The aggregate number of shares of all classes of stock, which the
Corporation shall have authority to issue is One Hundred Million (100,000,000)
of which Seventy Five Million (75,000,000) shares will be designated Common
Stock, with $.001 par value; and Twenty Five Million (25,000,000) shares shall
be designated $.001 par value "Preferred Stock." Without further authorization
from the shareholders, the Board of Directors shall have the authority to divide
and issue from time to time any or all of the Twenty Five Million (25,000,000)
shares of such Preferred Stock into one or more series with such designations,
preferences and relative, participating, optional or other special rights, or
qualification, limitations or restrictions thereof, as may be designated by the
Board of Directors, prior to the issuance of such series, and the Board of
Directors is hereby expressly authorized to fix by resolution or resolutions
only and without further action or approval, prior to such issuance, such
designations, preferences and relative, participating, optional or other special
rights, or qualifications, limitations or restrictions, including, without
limitation the date and times at which, and the rate, if any, or rates at which
dividends on such series of Preferred Stock shall be paid; the rights, if any,
of the holders of such series of the Preferred Stock to vote and the manner of
voting, except as otherwise provided by the law, the rights, if any, of the
holders of shares of such series of Preferred Stock to convert the same into, or
exchange the same for, other classes of stock of the Corporation, and the terms
and conditions for such conversion or exchange; the redemption price or prices
and the time at which, and the terms and conditions of which, the shares of such
series of Preferred Stock may be redeemed; the rights of the holders of shares
of such series of Preferred Stock upon the voluntary or involuntary liquidation,
<PAGE>
distribution or sale of assets, dissolution or winding up of the Corporation,
and the terms of the sinking fund or redemption or purchase account, if any, to
be provided for such series of Preferred Stock. The designations, preferences,
and relative, participating, optional or other special rights, the
qualifications, limitations or restrictions thereof, of each additional series,
if any, may differ from those of any and all other series already outstanding.
Further, the Board of Directors shall have the power to fix the number of shares
constituting any classes or series and thereafter to increase or decrease the
number of shares of any such class or series subsequent to the issue of shares
of that class or series but not below the number of shares of that class or
series then outstanding.
FOURTH: The governing Board of this Corporation shall be known as
directors, and the number of directors may from time to time be increased or
decreased in such manner as shall be provided by the by-laws of this
Corporation.
The names and addresses of the first Board of Directors, which shall be two
(2) in number, are as follows:
NAME ADDRESS
Fred G. Luke 4695 MacArthur Court, Suite 530
Newport Beach, California 92660
Jon L. Lawver 4695 MacArthur Court, Suite 530
Newport Beach, California 92660
FIFTH: The name and address of the incorporator signing the Articles of
Incorporation is as follows:
NAME ADDRESS
Jon L. Lawver 4695 MacArthur Court, Suite 530
Newport Beach, California 92660
SIXTH: To the fullest extent permitted by Nevada Revised Statute 78.037
as the same exists or may hereafter be amended, an officer or director of the
corporation shall not be personally liable to the corporation or its
stockholders for monetary damages due to breach of fiduciary duty as such
officer or director.
SEVENTH: The purpose of this Corporation is to engage in any lawful act or
activity for which a corporation may be organized under the General Corporation
Law of Nevada.
<PAGE>
EIGHTH: The following provisions are inserted for the management of the
business and for the conduct of the affairs of the Corporation, and for further
definition, limitation and regulation of the powers of the Corporation and of
its directors and stockholders:
(1) The Board of Directors shall have power without the assent or vote of
the stockholders:
(a) To make, alter, amend, change, add to or repeal the by-laws of
the Corporation; to fix and vary the amount of capital or shares
of the Corporation's capital stock to be reserved or issued for
any proper purpose; to authorize and cause to be executed
mortgages and liens upon all or any part of the property of the
Corporation; to determine the use and disposition of any
surplus or net profits; and to fix the times for the declaration
and payment of dividends.
(b) To determine from time to time whether, and to what times and
places, and under what conditions the accounts and books of the
Corporation (other than the stock ledger) or any of them, shall
be open to the inspection of the stockholders.
(2) The directors in their discretion may submit any contract or act for
approval or ratification at any annual meeting of the stockholders or any
meeting of the stockholders called for the purpose of considering any such act
or contract, and any contract or act that shall be approved or be ratified by
the vote of the holders of a majority of the stock of the Corporation which is
represented in person or by proxy at such meeting and entitled to vote thereat
(provided that a lawful quorum of stockholders be there represented in person or
by proxy) shall be as valid and as binding upon the Corporation and upon all the
stockholders as though it has been approved or ratified by every stockholder of
the Corporation, whether or not the contractor act would otherwise be open to
legal attack because of directors' interest, or for any other reason.
(3) In addition to the powers and authorities hereinbefore or by statute
expressly conferred upon them, the directors are hereby empowered to exercise
all such powers and do all such acts and things as may be exercised or done by
the Corporation; subject, nevertheless, to the provisions of the statutes of
Nevada, of this certificate, and to any by-laws from time to time made by the
stockholders; provided, however, that no by-laws so made shall invalidate any
prior act of the directors which would have been valid if such by-law had not
been made.
<PAGE>
(4) The holders of one-third of the voting power of the shares entitled to
vote at a meeting, represented either in person or by proxy, shall constitute a
quorum for the transaction of business at any regular or special meeting of
shareholders.
(5) Cumulative voting by the shareholders of this Corporation shall not be
permitted in any election of directors.
IN WITNESS WHEREOF, the undersigned, Jon L. Lawver, for the purpose of
filing the Corporation's Articles of Incorporation pursuant to the General
Corporation Law of the State of Nevada, does make and file the Articles of
Incorporation, hereby declaring and certifying that the facts herein stated are
true; and accordingly I have hereunto set my hand this 22nd day of April, 1998.
/s/ Jon L. Lawver
Jon L. Lawver, Incorporator
State of California
County of Orange
On 4/22/98 before me, Linda Musto, Notary Public,
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Jon L. Lawver
Name(s) of Signer(s)
|_| personally known to me - OR - |_| proved to me on the basis of satisfactory
evidence to be the person(s) whose name (s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
/s/ Linda Musto
Signature of Notary Public
EXHIBIT 3.2
NuOasis Las Vegas Inc.
* * * * *
B Y - L A W S
* * * * *
ARTICLE I
OFFICES
Section 1. The registered office shall be in Las Vegas, Nevada.
Section 2. The corporation may also have offices at such other places
both within and without the State of Nevada as the board of directors may from
time to time determine or the business of the corporation may require.
ARTICLE II
MEETINGS OF STOCKHOLDERS
Section l. All annual meetings of the stockholders shall be held in the
City of Las Vegas, State of Nevada. Special meetings of the stockholders may be
held at such time and place within or without the State of Nevada as shall be
stated in the notice of the meeting, or in a duly executed waiver of notice
thereof.
Section 2. Annual meetings of stockholders, commencing with the year
1999, shall be held on October 25, if not a legal holiday, and if a legal
holiday, then on the next secular day following, at 10:00 A.M., at which they
shall elect by a plurality vote a board of directors, and transact such other
business as may properly be brought before the meeting.
Section 3. Special meetings of the stockholders, for any purpose or
purposes, unless otherwise prescribed by statute or by the articles of
incorporation, may be called by the president and shall be called by the
president or secretary at the request in writing of a majority of the board of
directors, or at the request in writing of stockholders owning a majority in
amount of the entire capital stock of the corporation issued and outstanding
<PAGE>
and entitled to vote. Such request shall state the purpose or purposes of
the proposed meeting.
Section 4. Notices of meetings shall be in writing and signed by the
president or a vice president, or the secretary, or an assistant secretary, or
by such other person or persons as the directors shall designate. Such notice
shall state the purpose or purposes for which the meeting is called and the time
when and the place where it is to be held. A copy of such notice shall be either
delivered personally to or shall be mailed, postage prepaid, to each stockholder
of record entitled to vote at such meeting not less than ten nor more than sixty
days before such meeting. If mailed, it shall be directed to a stockholder at
his address as it appears upon the records of the corporation and upon such
mailing of any such notice, the service thereof shall be complete, and the time
of the notice shall begin to run from the date upon which such notice is
deposited in the mail for transmission to such stockholder. Personal delivery of
any such notice to any officer of a corporation or association, or to any member
of a partnership shall constitute delivery of such notice to such corporation,
association or partnership. In the event of the transfer of stock after delivery
or mailing of the notice of and prior to the holding of the meeting it shall not
be necessary to deliver or mail notice of the meeting to the transferee.
Section 5. Business transacted at any special meeting of stockholders
shall be limited to the purposes stated in the notice.
Section 6. The holders of a majority of the stock issued and
outstanding and entitled to vote thereat, present in person or represented by
proxy, shall constitute a quorum at all meetings of the stockholders for the
transaction of business except as otherwise provided by statute or by the
articles of incorporation. If, however, such quorum shall not be present or
represented at any meeting of the stockholders, the stockholders entitled to
vote thereat, present in person or represented by proxy, shall have power to
adjourn the meeting from time to time, without notice other than announcement at
the meeting, until a quorum shall be present or represented. At such adjourned
meeting at which a quorum shall be present or represented, any business may be
transacted which might have been transacted at the meeting as originally
notified.
Section 7. When a quorum is present or represented at any meeting, the
vote of the holders of a majority of the stock having voting power present in
person or represented by proxy shall decide any question brought before such
meeting, unless the question is one upon which by express provision of the
<PAGE>
statutes or of the articles of incorporation a different vote is required
in which case such express provision shall govern and control the decision of
such question.
Section 8. Every stockholder of record of the corporation shall be
entitled at each meeting of stock holders to one vote for each share of stock
standing in his name on the books of the corporation.
Section 9. At any meeting of the stockholders, any stockholder may be
represented and vote by a proxy or proxies appointed by an instrument in
writing. In the event that any such instrument in writing shall designate two or
more persons to act as proxies, a majority of such persons present at the
meeting, or, if only one shall be present, then that one shall have and may
exercise all of the powers conferred by such written instrument upon all of the
persons so designated unless the instrument shall otherwise provide. No such
proxy shall be valid after the expiration of six months from the date of its
execution, unless coupled with an interest, or unless the person executing it
specifies therein the length of time for which it is to continue in force, which
in no case shall exceed seven years from the date of its execution. Subject to
the above, any proxy duly executed is not revoked and continues in full force
and effect until an instrument revoking it or a duly executed proxy bearing a
later date is filed with the secretary of the corporation.
Section 10. Any action, which may be taken by the vote of the
stockholders at a meeting, may be taken without a meeting if authorized by the
written consent of stockholders holding at least a majority of the voting power,
unless the provisions of the statutes or of the articles of incorporation
require a greater proportion of voting power to authorize such action in which
case such greater proportion of written consents shall be required.
<PAGE>
ARTICLE III
DIRECTORS
Section l. The number of directors shall be neither more than 5 nor
less than 3. The number of directors is to be fixed by vote of the shareholders.
The directors shall be elected at the annual meeting of the stockholders, and
except as provided in Section 2 of this article, each director elected shall
hold office until his successor is elected and qualified. Directors need not be
stockholders.
Section 2. Vacancies, including those caused by an increase in the
number of directors, may be filled by a majority of the remaining directors
though less than a quorum. When one or more directors shall give notice of his
or their resignation to the board, effective at a future date, the board shall
have power to fill such vacancy or vacancies to take effect when such
resignation or resignations shall become effective, each director so appointed
to hold office during the remainder of the term of office of the resigning
director or directors.
Section 3. The business of the corporation shall be managed by its
board of directors which may exercise all such powers of the corporation and do
all such lawful acts and things as are not by statute or by the articles of
incorporation or by these by-laws directed or required to be exercised or done
by the stockholders.
MEETINGS OF THE BOARD OF DIRECTORS
Section 4. The board of directors of the corporation may hold meetings,
both regular and special, either within or without the State of Nevada.
Section 5. The first meeting of each newly elected board of directors
shall be held at such time and place as shall be fixed by the vote of the
stockholders at the annual meeting and no notice of such meeting shall be
necessary to the newly elected directors in order legally to constitute the
meeting, provided a quorum shall be present. In the event of the failure of
the stockholders to fix the time or place of such first meeting of the newly
elected board of directors, or in the event such meeting is not held at the
time and place so fixed by the stockholders, the meeting may be held at such
time and place as shall be specified in a notice given as hereinafter
<PAGE>
provided for special meetings of the board of directors, or as shall be
specified in a written waiver signed by all of the directors.
Section 6. Regular meetings of the board of directors may be held
without notice at such time and place as shall from time to time be determined
by the board.
Section 7. Special meetings of the board of directors may be called by
the president or secretary on the written request of one director. Written
notice of special meetings of the board of directors shall be given to each
director at least 3 days before the date of the meeting.
Section 8. A majority of the board of directors, at a meeting duly
assembled, shall be necessary to constitute a quorum for the transaction of
business and the act of a majority of the directors present at any meeting at
which a quorum is present shall be the act of the board of directors, except as
may be otherwise specifically provided by statute or by the articles of
incorporation. Any action required or permitted to be taken at a meeting of the
directors may be taken without a meeting if a consent in writing, setting forth
the action so taken, shall be signed by all of the directors entitled to vote
with respect to the subject matter thereof.
COMMITTEES OF DIRECTORS
Section 9. The board of directors may, by resolution passed by a
majority of the whole board, designate one or more committees, each committee to
consist of one or more of the directors of the corporation, which, to the extent
provided in the resolution, shall have and may exercise the powers of the board
of directors in the management of the business and affairs of the corporation,
and may have power to authorize the seal of the corporation to be affixed to all
papers on which the corporation desires to place a seal. Such committee or
committees shall have such name or names as may be determined from time to time
by resolution adopted by the board of directors.
Section 10. The committees shall keep regular minutes of their
proceedings and report the same to the board when required.
<PAGE>
COMPENSATION OF DIRECTORS
Section 11. The directors may be paid their expenses, if any, of
attendance at each meeting of the board of directors and may be paid a fixed sum
for attendance at each meeting of the board of directors or a stated salary as
director. No such payment shall preclude any director from serving the
corporation in any other capacity and receiving compensation therefor. Members
of special or standing committees may be allowed like compensation for attending
committee meetings.
ARTICLE IV
NOTICES
Section l. Notices to directors and stockholders shall be in writing
and delivered personally or mailed to the directors or stockholders at their
addresses appearing on the books of the corporation. Notice by mail shall be
deemed to be given at the time when the same shall be mailed. Notice to
directors may also be given by facsimile telecommunication.
Section 2. Whenever all parties entitled to vote at any meeting,
whether of directors or stockholders, consent, either by a writing on the
records of the meeting or filed with the secretary, or by presence at such
meeting and oral consent entered on the minutes, or by taking part in the
deliberations at such meeting without objection, the doings of such meeting
shall be as valid as if had at a meeting regularly called and noticed, and at
such meeting any business may be transacted which is not excepted from the
written consent or to the consideration of which no objection for want of
notice is made at the time, and if any meeting be irregular for want of noticeor
of such consent, provided a quorum was present at such meeting, the proceed ings
of said meeting may be ratified and approved and rendered likewise valid and the
irregularity or defect therein waived by a writing signed by all parties having
the right to vote at such meetings; and such consent or approval of stockholders
may be by proxy or attorney, but all such proxies and powers of attorney must be
in writing.
Section 3. Whenever any notice whatever is required to be given under
the provisions of the statutes, of the articles of incorporation or of these
by-laws, a waiver thereof in writing, signed by the person or persons
<PAGE>
entitled to said notice, whether before or after the time stated therein,
shall be deemed equivalent thereto.
ARTICLE V
OFFICERS
Section l. The officers of the corporation shall be chosen by the board
of directors and shall be a presi dent, a vice president, a secretary and a
treasurer. Any person may hold two or more offices.
Section 2. The board of directors at its first meeting after each
annual meeting of stockholders shall choose a president, a vice president, a
secretary and a treasurer, none of whom need be a member of the board.
Section 3. The board of directors may appoint additional vice
presidents, and assistant secretaries and assistant treasurers and such other
officers and agents as it shall deem necessary who shall hold their offices for
such terms and shall exercise such powers and perform such duties as shall be
determined from time to time by the board.
Section 4. The salaries of all officers and agents of the corporation
shall be fixed by the board of directors.
Section 5. The officers of the corporation shall hold office until
their successors are chosen and qualify. Any officer elected or appointed by the
board of directors may be removed at any time by the affirmative vote of a
majority of the board of directors. Any vacancy occurring in any office of the
corporation by death, resignation, removal or otherwise shall be filled by the
board of directors.
<PAGE>
THE PRESIDENT
Section 6. The president shall be the chief executive officer of the
corporation, shall preside at all meetings of the stockholders and the board of
directors, shall have general and active management of the business of the
corporation, and shall see that all orders and resolutions of the board of
directors are carried into effect.
Section 7. He shall execute bonds, mortgages and other contracts
requiring a seal, under the seal of the corporation, except where required or
permitted by law to be otherwise signed and executed and except where the
signing and execution thereof shall be expressly delegated by the board of
directors to some other officer or agent of the corporation.
THE VICE PRESIDENT
Section 8. The vice president shall, in the absence or disability of
the president, perform the duties and exercise the powers of the president and
shall perform such other duties as the board of directors may from time to time
prescribe.
THE SECRETARY
Section 9. The secretary shall attend all meetings of the board of
directors and all meetings of the stockholders and record all the proceedings of
the meetings of the corporation and of the board of directors in a book to be
kept for that purpose and shall perform like duties for the standing committees
when required. He shall give, or cause to be given, notice of all meetings of
the stockholders and special meetings of the board of directors, and shall
perform such other duties as may be prescribed by the board of directors or
president, under whose supervision he shall be. He shall keep in safe custody
the seal of the corporation and, when authorized by the board of directors,
affix the same to any instrument requiring it and, when so affixed, it shall be
attested by his signature or by the signature of the treasurer or an assistant
secretary.
<PAGE>
THE TREASURER
Section 10. The treasurer shall have the custody of the corporate funds
and securities and shall keep full and accurate accounts of receipts and
disbursements in books belonging to the corporation and shall deposit all moneys
and other valuable effects in the name and to the credit of the corporation in
such deposi tories as may be designated by the board of directors.
Section 11. He shall disburse the funds of the corporation as may be
ordered by the board of directors taking proper vouchers for such disbursements,
and shall render to the president and the board of directors, at the regular
meetings of the board, or when the board of directors so requires, an account of
all his transactions as treasurer and of the financial condition of the
corporation.
Section 12. If required by the board of directors, he shall give the
corporation a bond in such sum and with such surety or sureties as shall be
satisfactory to the board of directors for the faithful performance of the
duties of his office and for the restoration to the corporation, in case of his
death, resignation, retirement or removal from office, of all books, papers,
vouchers, money and other property of whatever kind in his possession or under
his control belonging to the corporation.
ARTICLE VI
CERTIFICATES OF STOCK
Section l. Every stockholder shall be entitled to have a certificate,
signed by the president or a vice president and the treasurer or an assistant
treasurer, or the secretary or an assistant secretary of the corporation,
certifying the number of shares owned by him in the corporation. If the
corporation is author ized to issue shares of more than one class or more than
one series of any class, there shall be set forth upon the face or back of the
certificate, or the certificate shall have a statement that the corporation will
furnish to any stockholders upon request and without charge, a full or summary
statement of the designations, preferences and relative, participating, optional
or other special rights of the various classes of stock or series thereof and
the qualifications, limitations or restrictions of such rights, and, if the
corporation shall be authorized to issue only special stock, such
<PAGE>
certificate shall set forth in full or summarize the rights of the
holders of such stock.
Section 2. Whenever any certificate is countersigned or otherwise
authenticated by a transfer agent or transfer clerk, and by a registrar, then a
facsimile of the signatures of the officers or agents of the corporation may be
printed or lithographed upon such certificate in lieu of the actual signatures.
In case any officer or officers who shall have signed, or whose facsimile
signature or signatures shall have been used on, any such certificate or
certificates shall cease to be such officer or officers of the corporation,
whether because of death, resignation or otherwise, before such certificate or
certificates shall have been delivered by the corporation, such certificate or
certificates may nevertheless be adopted by the corporation and be issued and
delivered as though the person or persons who signed such certificate or
certificates, or whose facsimile signature or signatures shall have been used
thereon, had not ceased to be an officer or officers of such corporation.
LOST CERTIFICATES
Section 3. The board of directors may direct a new certificate or
certificates to be issued in place of any certificate or certificates
theretofore issued by the corporation alleged to have been lost or destroyed,
upon the making of an affidavit of that fact by the person claiming the
certificate of stock to be lost or destroyed. When authorizing such issue of a
new certificate or certificates, the board of directors may, in its discretion
and as a condition precedent to the issuance thereof, require the owner of such
lost or destroyed certificate or certificates, or his legal representative, to
advertise the same in such manner as it shall require and/or give the
corporation a bond in such sum as it may direct as indemnity against any claim
that may be made against the corporation with respect to the certificate alleged
to have been lost or destroyed.
<PAGE>
TRANSFER OF STOCK
Section 4. Upon surrender to the corporation or the transfer agent of
the corporation of a certificate for shares duly endorsed or accompanied by
proper evidence of succession, assignment or authority to transfer, it shall be
the duty of the corporation to issue a new certificate to the person entitled
thereto, cancel the old certificate and record the transaction upon its books.
CLOSING OF TRANSFER BOOKS
Section 5. The directors may prescribe a period not exceeding sixty
days prior to any meeting of the stockholders during which no transfer of stock
on the books of the corporation may be made, or may fix a day not more than
sixty days prior to the holding of any such meeting as the day as of which
stockholders entitled to notice of and to vote at such meeting shall be
determined; and only stockholders of record on such day shall be entitled to
notice or to vote at such meeting.
REGISTERED STOCKHOLDERS
Section 6. The corporation shall be entitled to recognize the exclusive
right of a person registered on its books as the owner of shares to receive
dividends, and to vote as such owner, and to hold liable for calls and
assessments a person registered on its books as the owner of shares, and shall
not be bound to recognize any equitable or other claim to or interest in such
share or shares on the part of any other person, whether or not it shall have
express or other notice thereof, except as otherwise provided by the laws of
Nevada.
<PAGE>
ARTICLE VII
GENERAL PROVISIONS
DIVIDENDS
Section l. Dividends upon the capital stock of the corporation, subject
to the provisions of the articles of incorporation, if any, may be declared by
the board of directors at any regular or special meeting pursuant to law.
Dividends may be paid in cash, in property, or in shares of the capital stock,
subject to the provisions of the articles of incorporation.
Section 2. Before payment of any dividend, there may be set aside out
of any funds of the corporation available for dividends such sum or sums as the
directors from time to time, in their absolute discretion, think proper as a
reserve or reserves to meet contingencies, or for equalizing dividends, or for
repairing or maintaining any property of the corporation, or for such other
purpose as the directors shall think conducive to the interest of the
corporation, and the directors may modify or abolish any such reserves in the
manner in which it was created.
CHECKS
Section 3. All checks or demands for money and notes of the corporation
shall be signed by such officer or officers or such other person or persons as
the board of directors may from time to time designate.
FISCAL YEAR
Section 4. The fiscal year of the corporation shall be fixed by
resolution of the board of directors.
SEAL
Section 5. The corporate seal shall have inscribed thereon the name of
the corporation, the year of its incorporation and the words "Corporate Seal,
Nevada."
<PAGE>
ARTICLE VIII
AMENDMENTS
Section l. These by-laws may be altered or repealed at any regular
meeting of the stockholders or of the board of directors or at any special
meeting of the stockholders or of the board of directors if notice of such
alteration or repeal be contained in the notice of such special meeting.
I, THE UNDERSIGNED, being the secretary of NuOasis Las Vegas, Inc., DO
HEREBY CERTIFY the foregoing to be the by-laws of said corporation, as adopted
at a meeting of the directors held on the 22nd day of May 1999.
/s/ Jon L. Lawver
(Secretary)
EXHIBIT 4.1
Number Shares
________ _________
INCORPORATED UNDER THE LAWS OF THE STATE OF NEVADA
NUOASIS LAS VEGAS, INC.
AUTHORIZED TO ISSUE 100,000,000 SHARES
75,000,000 COMMON SHARES 25,000,000 PREFERRED SHARES
PAR VALUE $0.001 EACH PAR VALUE $0.001 EACH
This Certifies that ____________________ is the owner of ______________________
fully paid and non-assessable Shares
of the Common Shares of NUOASIS LAS VEGAS, INC. transferable only on the
books of the Corporation by the holder hereof in person or by duly authorized
Attorney upon surrender of this Certificate properly endorsed.
In Witness Whereof, the said Corporation has caused this Certificate to be
signed by its duly authorized officers and to be sealed with the Seal of the
Corporation this ___ day of _____ A.D.
_________ _______________
SECRETARY PRESIDENT
EXHIBIT 10.1
ADVISORY AGREEMENT
THIS ADVISORY AGREEMENT ("Agreement") is made effective the 1st day of July
1999, by and between NuVen Advisors, Limited Partnership, a Nevada Limited
Partnership ("Advisor") and NuOasis Las Vegas Inc., a Utah corporation (the
"Company").
WHEREAS, Advisor and Advisor's Personnel (as defined below) have experience
in evaluating and effecting mergers and acquisitions, supervising corporate
management, and in performing general administrative duties for publicly-held
companies and development stage investment ventures; and
WHEREAS, the Company desires to retain Advisor to advise and assist the
Company in its development on the terms and conditions set forth below.
NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and Advisor
agree as follows:
1. Engagement
The Company hereby retains Advisor, effective the date hereof and
continuing until termination, as provided herein, to assist the Company in
its effecting the purchase of businesses and assets relative to its
business and growth strategy (the "Services"). The Services are to be
provided on a "best efforts" basis directly and through Advisor's officers
or others employed or retained and under the direction of Advisor
("Advisor's Personnel"); provided, however, that the Services shall
expressly exclude capital raising activities of any nature and all legal
advice, accounting services or other services which require licenses or
certification which Advisor may not have.
2. Term
This Agreement shall have an initial term of five (5) years (the
"Primary Term") from the effective date of July 1, 1999. At the conclusion
of the Primary Term this Agreement will automatically be extended on an
annual basis (the "Extension Period") unless Advisor or the Company shall
serve written notice on the other party terminating the Agreement. Any
notice to terminate given hereunder shall be in writing and shall be
delivered at least thirty (30) days prior to the end of the Primary Term or
any subsequent Extension Period.
3. Time and Effort of Advisor
Advisor shall allocate time and Advisors Personnel as it deems necessary to
provide the Services. The particular amount of time may vary from day to
day or week to week. Except as otherwise agreed, Advisor's monthly
statement identifying, in general, tasks performed for the Company shall
be conclusive evidence that the Services have been performed.
Additionally, in the absence of willful misfeasance, bad faith, negligence
or reckless disregard for the obligations or duties hereunder by Advisor,
neither Advisor nor Advisor's Personnel shall be liable to the Company or
any of its shareholders for any act or omission in the course of or
connected with rendering the Services, including but not limited to losses
that may be sustained in any corporate act in any subsequent Business
Opportunity (as defined herein) undertaken by the Company as a result of
advice provided by Advisor or Advisor's Personnel.
<PAGE>
4. Compensation
The Company agrees to pay Advisor a fee for the services provided by
Advisor pursuant to this Agreement, as follows:
A. Advisory Fee: The Company shall pay Advisor a monthly fee ("Advisory
Fee") equal to Three Thousand Five Hundred Dollars ($3,500), payable
monthly in advance, in cash or shares of the Company's common stock, at
the Company's election, with such shares to be registered as set
forth herein;
B. Merger Fee: As to Services provided by Advisor related to the
introduction of Business Opportunities which results in a Merger
Transaction or which the Company acquires or otherwise obtain an equity
interest or interest as a creditor, the Company agrees to pay Advisor
a transaction fee (the "Merger Fee"). The Merger Fee shall be equal to
ten percent (10%) of the asset value or investment made in the Company
(including assumed debt) in such Business Opportunity as a result of
Advisor's introduction or efforts. One third (1/3) of the Merger Fee
shall be due and payable upon completion of the definitive agreements
related to each transaction, and the balance shall be issued upon
closing;
C. Transaction Fee: As to Services provided by Advisor related to the sale
of the Company's assets, the Company agrees to pay Advisor a fee
("Transaction Fee") equal to five percent (5%) of the net proceeds
received by the Company.
As additional incentive to execute this Agreement, the Company hereby
grants to Advisor an option to purchase Five Hundred Thousand (500,000)
shares of its common stock (the "Option"), exercisable at a price per share
of fifty cents ($.50) per share, which represents more than one hundred ten
percent (110%) of the fully diluted net book value of such shares as of the
date of the Company's last quarterly financial statements. The Option shall
be evidenced by an Option Agreement in form and substance, with a stated
exercise price, as that attached hereto as Exhibit "B" and incorporated
herein by reference. The right of Advisor to exercise the Option will vest
to Advisor upon execution hereof.
5. Other Services
If the Company subsequent to the date hereof enters into a merger or
purchases the assets or enters into a joint venture with, or makes an
investment in a company (a "Business Opportunity") introduced by Advisor,
the Company agrees to pay Advisor a fee equal to five percent (5%) of the
value of each Business Opportunity introduced by Advisor (collectively
referred to herein, in each instance, as the "Transaction Fee"), which
shall be payable upon the closing date each such transaction in cash or in
shares of the Company's common stock on the same basis as the Fee Shares.
The Company and Advisor acknowledge that in the event Advisor, as a result
of this Agreement, receives shares of the Company's common stock it may be
considered an affiliate subject to Section 16(b) of the Securities Exchange
Act of 1934 (the "'34 Act"). In this regard the Company and Advisor agree,
that for purposes of any "profit" computation under Section 16(b) of the
'34 Act, the price paid for such shares is equal to the Advisory Fee or the
transaction Fee, as the case may be.
<PAGE>
6. Registration of Shares
No later than ten (10) days following the date hereof as to the Fee Shares,
the Advisory Fee (if paid in shares), the Option Shares and, as to an event
giving use to the obligation by the Company to pay a Transaction Fee, the
shares comprising the Transaction Fee shall be registered by the Company
with the Securities and Exchange Commission under a Form S-8 or other
applicable registration statement, and the Company shall cause such
registration statement to remain effective at all times while Advisor holds
such shares. At Advisor's election, such shares may be issued prior to
registration in reliance on exemptions from registration provided by
Section 4(2) of the Securities Act of 1933 (the "'33 Act"), Regulation D
of the '33 Act, and applicable state securities laws. Such issuance or
reservation of shares shall be in reliance on representations and
warranties of Advisor set forth herein. Failing to register such shares,
or maintain the effectiveness of the applicable registration statement,
the Company shall satisfy any Advisory Fee, Transaction Fee or Advisory
Fee in cash within ten (10) days of receipt of Advisor's statement setting
out the amount and type of fee then due and payable.
7. Costs and Expenses
All third party and out-of-pocket expenses incurred by Advisor in the
performance of the Services shall be paid by the Company, or Advisor shall
be reimbursed if paid by Advisor on behalf of the Company, within ten (10)
days of receipt of written notice by Advisor, provided that the Company
must approve in advance all such expenses in excess of $500 per month.
8. Place of Services
The Services provided by Advisor or Advisor's Personnel hereunder will be
performed at Advisor's offices except as otherwise mutually agreed by
Advisor and the Company.
9. Independent Contractor
Advisor and Advisor's Personnel will act as an independent contractor in
the performance of its duties under this Agreement. Accordingly, Advisor
will be responsible for payment of all federal, state, and local taxes on
compensation paid under this Agreement, including income and social
security taxes, unemployment insurance, and any other taxes due relative to
Advisor's Personnel, and any and all business license fees as may be
required. This Agreement neither expressly nor impliedly creates a
relationship of principal and agent, or employee and employer, between
Advisor's Personnel and the Company. Neither Advisor nor Advisor's
Personnel are authorized to enter into any agreements on behalf of the
Company. The Company expressly retains the right to approve, in its sole
discretion, each Business Opportunity introduced by Advisor, and to make
all final decisions with respect to effecting a transaction on any Business
Opportunity.
10. Rejected Business Opportunity
If, during the Primary Term of this Agreement or any Extension Period, the
Company elects not to proceed to acquire, participate or invest in any
Business Opportunity identified and/or selected by Advisor, notwithstanding
the time and expense the Company may have incurred reviewing such
transaction, such Business Opportunity shall re-vest back to and become
proprietary to Advisor, and Advisor shall be entitled to acquire or broker
the sale or investment in such rejected Business Opportunity for its own
account, or submit such assets or Business Opportunity elsewhere. In such
event, Advisor shall be entitled to any and all profits or fees resulting
from Advisor's purchase, referral or placement of any such rejected
Business Opportunity, or the Company's subsequent purchase or financing
with such Business Opportunity in circumvention of Advisor.
<PAGE>
11. No Agency Express or Implied
This Agreement neither expressly nor impliedly creates a relationship of
principal and agent between the Company and Advisor, or employee and
employer as between Advisor's Personnel and the Company.
12. Termination
The Company and Advisor may terminate this Agreement prior to the
expiration of the Primary Term upon thirty (30) days written notice with
mutual written consent. Failing to have mutual consent, without prejudice
to any other remedy to which the terminating party may be entitled, if any,
either party may terminate this Agreement with thirty (30) days written
notice under the following conditions:
(A) By the Company.
(i) If during the Primary Term of this Agreement or any Extension
Period, Advisor is unable to provide the Services as set forth
herein for thirty (30) consecutive business days because of
illness, accident, or other incapacity of Advisor's Personnel;
or,
(ii) If Advisor willfully breaches or neglects the duties required to
be performed hereunder; or,
(B) By Advisor.
(i) If the Company breaches this Agreement or fails to make any
payments or provide information required hereunder; or,
(ii) If the Company ceases business or, other than in the Initial
Merger, sells a controlling interest to a third party, or agrees
to a consolidation or merger of itself with or into another
corporation, or enters into such a transaction outside of the
scope of this Agreement, or sells substantially all of its assets
to another corporation, entity or individual outside of the scope
of this Agreement; or,
(iii)If the Company has a receiver appointed for its business or
assets, or otherwise becomes insolvent or unable to timely
satisfy its obligations in the ordinary course of business,
including but not limited to the obligation to pay the Advisory
Fee, the Transaction Fee, or the Advisory Fee; or,
(iv) If the Company institutes, makes a general assignment for the
benefit of creditors, has instituted against it any bankruptcy
proceeding for reorganization for rearrangement of its financial
affairs, files a petition in a court of bankruptcy, or is
adjudicated a bankrupt; or,
(v) If any of the disclosures made herein or subsequent hereto by the
Company to Advisor are determined to be materially false or
misleading.
In the event Advisor elects to terminate without cause or this Agreement is
terminated prior to the expiration of the Primary Term or any Extension
Period by mutual written agreement, or by the Company for the reasons set
forth in A(i) and (ii) above, the Company shall only be responsible to pay
Advisor for unreimbursed expenses, Advisory Fee and Transaction Fee accrued
up to and including the effective date of termination. If this Agreement is
terminated by the Company for any other reason, or by Advisor for reasons
set forth in B(i) through (v) above, Advisor shall be entitled to any
outstanding unpaid portion of reimbursable expenses, Transaction Fee, if
any, and the balance of the Advisory Fee for the remainder of the
<PAGE>
unexpired portion of the applicable term (Primary Term or Extension Period)
of the Agreement.
13. Indemnification
Subject to the provisions herein, the Company and Advisor agree to
indemnify, defend and hold each other harmless from and against all
demands, claims, actions, losses, damages, liabilities, costs and expenses,
including without limitation, interest, penalties and attorneys' fees and
expenses asserted against or imposed or incurred by either party by reason
of or resulting from any action or a breach of any representation,
warranty, covenant, condition, or agreement of the other party to this
Agreement. In addition, the Company agrees to indemnify Advisor, its
officers, directors and general partner for expenses and the payment of
profits arising from the purchase and sale by Advisor of securities in
violation of Section 16(b) of the Securities Exchange Act of 1934, as
amended, or any similar successor statute.
14. Remedies
Advisor and the Company acknowledge that in the event of a breach of this
Agreement by either party, money damages would be inadequate and the
non-breaching party would have no adequate remedy at law. Accordingly, in
the event of any controversy concerning the rights or obligations
under this Agreement, such rights or obligations shall be enforceable in a
court of equity by a decree of specific performance. Such remedy, however,
shall be cumulative and non-exclusive and shall be in addition to any other
remedy to which the parties may be entitled.
15. Miscellaneous
(A) Subsequent Events. Advisor and the Company each agree to notify the
other party if, subsequent to the date of this Agreement, either party
incurs obligations which could compromise its efforts and obligations
under this Agreement.
(B) Amendment. This Agreement may be amended or modified at any time and
in any manner only by an instrument in writing executed by the parties
hereto.
(C) Further Actions and Assurances. At any time and from time to time,
each party agrees, at its or their expense, to take actions and to
execute and deliver documents as may be reasonably necessary to
effectuate the purposes of this Agreement.
(D) Waiver. Any failure of any party to this Agreement to comply with any
of its obligations, agreements, or conditions hereunder may be waived
in writing by the party to whom such compliance is owed. The failure
of any party to this Agreement to enforce at any time any
of the provisions of this Agreement shall in no way be construed to be
a waiver of any such provision or a waiver of the right of such party
thereafter to enforce each and every such provision. No waiver of any
breach of or non-compliance with this Agreement shall be held to be a
waiver of any other or subsequent breach or non-compliance.
(E) Assignment. Neither this Agreement nor any right created by it shall
be assignable by either party without the prior written consent of the
other.
<PAGE>
(F) Notices. Any notice or other communication required or permitted by
this Agreement must be in writing and shall be deemed to be properly
given when delivered in person to an officer of the other party, when
deposited in the United States mails for transmittal by certified or
registered mail, postage prepaid, or when deposited with a public
telegraph company for transmittal, or when sent by facsimile
transmission charges prepared, provided that the communication is
addressed:
(i) In the case of the Company:
NuOasis Las Vegas Inc.
4695 MacArthur Court, Suite 530
Newport Beach, California 92660
Telephone: (949) 833-5381
Facsimile: (949) 833-7854
(ii) In the case of Advisor:
NuVen Advisors, Limited Partnership
4001 So. Decatur, Suite 37-130
Las Vegas, Nevada 89103
Telephone: (702) 871-9080
Telefax: (702) 871-5945
With copy to:
Richard O. Weed
Weed & Co. L.P.
4695 MacArthur Court, Suite #530
Newport Beach, CA 92660
Telephone: (949) 475-9086
Telefax: (949) 475-9087
or to such other person or address designated in writing by the Company or
Advisor to receive notice.
(G) Headings. The section and subsection headings in this Agreement are
inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.
(H) Governing Law. This Agreement was negotiated and is being contracted
for in the state of Nevada and shall be governed by the laws of the
state of Nevada, notwithstanding any conflict-of-law provision to the
contrary.
(I) Binding Effect. This Agreement shall be binding upon the parties
hereto and inure to the benefit of the parties, their respective
heirs, administrators, executors, successors, and assigns.
(J) Entire Agreement. This Agreement contains the entire agreement
between the parties hereto and supersedes and renders null and void
any and all prior agreements, arrange ments, or understandings between
the parties relating to the subject matter of this Agreement including
but not limited to the Advisory and Management Agreement dated
October 1, 1997 and January 1, 1998. No oral understandings,
statements, promises, or inducements contrary to the terms of this
Agreement exist. No representations, warranties, covenants, or
conditions, express or implied, other than as set forth herein, have
been made by any party.
<PAGE>
(K) Severability. If any part of this Agreement is deemed to be
unenforceable the balance of the Agreement shall remain in full force
and effect.
(L) Counterparts. A facsimile, telecopy, or other reproduction of this
Agreement may be executed simultaneously in two or more counterparts,
each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument, by one or more parties
hereto and such executed copy may be delivered by facsimile of similar
instantaneous electronic transmission device pursuant to which the
signature of or on behalf of such party can be seen. In this event,
such execution and delivery shall be considered valid, binding and
effective for all purposes. At the request of any party hereto,
all parties agree to execute an original of this Agreement as well as
any facsimile, telecopy or other reproduction hereof.
(M) Time is of the Essence. Time is of the essence of this Agreement and
of each and every provision hereof.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date
above written.
"Advisor"
NuVen Advisors, Limited Partnership
a Nevada Limited Partnership
By: /s/ Fred G. Luke
Name: Fred G. Luke
Title: General Partner
The "Company"
NuOasis Las Vegas Inc.
a Nevada corporation
By: /s/ Jon L. Lawver
Name: Jon L. Lawver
Title: Director
<PAGE>
EXHIBIT "A"
to the
Advisory Agreement
dated July 1, 1999
THE OPTION
<PAGE>
OPTION AGREEMENT
THIS OPTION AGREEMENT ("Agreement") is entered into effective the 1st day
of July 1999, by and between Fred G. Luke, individually and on behalf of NuVen
Advisor Limited Partnership, a Nevada Limited Partnership (collectively
"NuVen"), and NuOasis Las Vegas, a Nevada corporation (the "Company").
WHEREAS, the Company has agreed to issue to NuVen the option to purchase
shares of the Company's common stock (the "Common Stock") to induce NuVen to
execute the Advisory Agreement of even date between the Company and NuVen, such
agreement incorporated herein by reference (the "Advisory Agreement").
NOW, THEREFORE, for and in consideration of the mutual promises herein, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and subject to the terms and conditions set forth
below, NuVen and the Company agree as follows:
1. The Option
The Company hereby grants to NuVen the option to acquire Five Hundred
Thousand (500,000) shares of the Company's Common Stock (the "Option"),
subject to adjustment as set forth herein (such shares, as adjusted, are
hereinafter referred to as the "Option Shares"), at a purchase price of
Fifty Cents ($.50) per share ("Option Price").
2. Term and Exercise of Option
A. Term of Option. Subject to the terms of this Agreement, Holder shall
have the right to exercise the Option in whole or in part, commencing
the date hereof through the close of business on July 1, 2004.
B. Exercise of the Option. The Option may be exercised upon written
notice to the Company at its principal office setting out the number
of Option Shares to be purchased, together with payment
of the Option Price
C. Issuance of Option Shares. Upon such notice of exercise and payment
of the Option Price, the Company shall issue and cause to be delivered
within five (5) business days following the written order of Holder,
or its successor as provided for herein, and in such name or names as
the Holder may designate, a certificate or certificates for the number
of Option Shares so purchased. The rights of purchase represented by
the Option shall be exercisable, at the election of the Holder
thereof, either in full or from time to time in part, and in the event
the Option is exercised in respect of less than all of the Option
Shares purchasable on such exercise at any time prior to the date of
expiration hereof, the remaining Option Shares shall continue to be
subject to adjustment as set forth in paragraph 4 hereof. The Company
irrevocably agrees to reconstitute the Option Shares as provided
herein.
<PAGE>
3. Reservation of Option Shares
The Company shall at all times keep reserved and available, out of its
authorized Common Stock, such number of shares of Common Stock sufficient
to provide for the exercise of the Option represented by this Agreement.
The transfer agent for the Company's Common Stock and any successor
transfer agent for any shares of the Company's capital stock issuable upon
the exercise of any of such Option rights, will be irrevocably authorized
and directed at all times by the Company in writing to reserve such number
of shares. The Company will cause a copy of this Agreement to be
kept on file with the Company's current transfer agent or its successors.
4. Adjustment of Option Shares
The number of Option Shares purchasable pursuant to this Agreement shall be
subject to adjustment from time to time upon the occurrence of certain
events, as follows:
A. Adjustment for Recapitalization. In the event the Company shall
(a) subdivide its outstanding shares of Common Stock, or (b) issue or
convert by a reclassification or recapitalization of its shares of
Common Stock into, for, or with other securities (a
"Recapitalization"), the number of Option Shares purchasable hereunder
immediately following such Recapitalization shall be adjusted so that
the Holder shall be entitled to receive the kind and number of
Option Shares or other securities of the Company measured as a
percentage of the total issued and outstanding shares of the Company's
Common Stock as of the date hereof, which it would have been entitled
to receive immediately preceding such Recapitalization, had such
Option been exercised immediately prior to the happening of such event
or any record date with respect thereto; provided however that, in the
event of any change in the Company's Common Stock by reason
of a reverse stock split, neither the number nor the Option Price of
the shares subject to this Option shall be changed or be adjusted.
B. Preservation of Purchase Rights Under Consolidation. Subject to
paragraph 4 above, in case of any Recapitalization or any other
consolidation of the Company with or merger of the Company
into another corporation, or in case of any sale or conveyance to
another corporation of the property of the Company as an entirety or
substantially as an entirety, the Company shall prior to the closing
of such transaction, cause such successor or purchasing corporation,
as the case may be, to acknowledge and accept responsibility for the
Company's obligations hereunder and to grant the Holder the right
thereafter upon payment of the Option Price to purchase the kind
and amount of shares and other securities and property which he would
have owned or have been entitled to receive after the happening of
such consolidation, merger, sale or conveyance. The provisions of this
paragraph shall similarly apply to successive consolidations, mergers,
sales or conveyances.
C. Notice of Adjustment. Whenever the number of Option Shares
purchasable hereunder is adjusted, as herein provided, the Company
shall mail by first class mail, postage prepaid, to the
Holder notice of such adjustment or adjustments, and shall deliver to
Holder setting forth the adjusted number of Option Shares purchasable
and a brief statement of the facts requiring such adjustment,
including the computation by which such adjustment was made.
5. Failure to Deliver Option Shares Constitutes Breach Under Advisory
Agreement
Failure by the Company, for any reason, to deliver the certificates
representing any shares purchased pursuant to this Option within the five
(5) business day period set forth in paragraph 2 above, or the placement of
a Stop Transfer order by the Company on any Option Shares once issued,
shall constitute a "Breach" under the Advisory Agreement and, for the
purpose of determining the terms of this Agreement, shall automatically
toll the expiration of this Agreement for a period of time equal to the
delay in delivering the subject shares or term of the Stop Transfer order.
<PAGE>
6. Indemnification for Section 16 (b) Violation
The Company agrees to indemnify NuVen for expenses and the payment of
profits arising from the exercise of the Option and sale by NuVen of Option
Shares in violation of Section 16(b) of the Securities Exchange Act of
1934, as amended, or any similar successor statute.
7. Assignment
The Option represented by this Agreement may only be assigned or
transferred by NuVen to an Affiliate or subsidiary, or as the result of a
corporate reorganization or recapitalization. For the purpose of this
Option the term "Affiliate" shall be defined as a person or enterprise that
directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with the Company otherwise, this
Agreement and the rights hereunder shall not be assigned by either party
hereto.
8. Counterparts
A facsimile, telecopy or other reproduction of this instrument may be
executed by one or more parties hereto and such executed copy may be
delivered by facsimile or similar instantaneous electronic transmission
device pursuant to which the signature of or on behalf of such party can be
seen, and such execution and delivery shall be considered valid, binding
and effective for all purposes. At the request of any party hereto, all
parties agree to execute an original of this instrument as well as any
facsimile, telecopy or other reproduction hereof.
9. Further Documentation
Each party hereto agrees to execute such additional instruments and take
such action as may be reasonably requested by the other party to affect the
transaction, or otherwise to carry out the intent and purposes of this
Agreement.
10. Notices
All notices and other communications hereunder shall be in writing and
shall be sent by prepaid first class mail to the parties at the following
addresses, as amended by the parties with written notice to the other:
To NuVen: Fred G. Luke
NuVen Advisor Limited Partnership
4695 MacArthur Court, Suite #530
Newport Beach, CA 92660
Telephone: (949) 833-2094
Telefax: (949) 833-7854
With copy to: Weed & Co. L.P.
4695 MacArthur Court, Suite 530
Newport Beach, California 92660
Telephone: (949) 475-9086
Facsimile: (949) 475-9087
To the Company: NuOasis Las Vegas
4695 MacArthur Court, Suite 530
Newport Beach, California 92660
Telephone: (949) 833-5358
Facsimile: (949) 833-7854
<PAGE>
11. Counterparts
This Agreement may be executed simultaneously in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.
12. Governing Law
This Agreement was negotiated, and shall be governed by the laws of Nevada
notwithstanding any conflict-of-law provision to the contrary.
13. Entire Agreement
This Agreement sets forth the entire understanding between the parties
hereto and no other prior written or oral statement or agreement shall be
recognized or enforced.
14. Severability
If a court of competent jurisdiction determines that any clause or
provision of this Agreement is invalid, illegal or unenforceable, the other
clauses and provisions of the Agreement shall remain in full force and
effect and the clauses and provision which are determined to be void,
illegal or unenforceable shall be limited so that they shall remain in
effect to the extent permissible by law.
15. Amendment or Waiver
Every right and remedy provided herein shall be cumulative with every other
right and remedy, whether conferred herein, at law, or in equity, and may
be enforced concurrently herewith, and no waiver by any party of the
performance of any obligation by the other shall be construed as a waiver
of the same or any other default then, theretofore, or thereafter occurring
or existing. At any time prior to Closing, this Agreement may be amended by
a writing signed by all parties hereto.
16. Headings
The section and subsection headings in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.
<PAGE>
IN WITNESS WHEREOF, the parties have executed this Agreement the day and
year first written above.
"NuVen"
Fred G. Luke, dba
NuVen Advisor Limited Partnership
By: /s/ Fred G. Luke
Name: Fred G. Luke
Title: General Partner
The "Company"
NuOasis Las Vegas, Inc.
a Nevada corporation
By: /s/ Jon L. Lawver
Name: Jon L. Lawver
Title: Director
EXHIBIT 23.1
CONSENT OF INDEPENDENT AUDITORS
We agree to the inclusion in this Form 10-SB of our report, dated November 18,
1999 on our audit of the financial statements of NuOasis Las Vegas, Inc. as of
June 30, 1999 and for each of the years in the two-year period then ended.
/s/ HASKELL & WHITE LLP
Haskell & White LLP
Irvine, California
March 6, 2000
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
EXHIBIT 27
FINANCIAL DATA SCHEDULE
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 12-MOS
<FISCAL-YEAR-END> JUN-30-1999 JUN-30-1999
<PERIOD-START> JUL-1-1999 JUL-1-1998
<PERIOD-END> DEC-31-1999 JUN-30-1999
<CASH> 93 93
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 93 93
<PP&E> 0 0
<DEPRECIATION> 0 0
<TOTAL-ASSETS> 93 93
<CURRENT-LIABILITIES> 58,745 37,745
<BONDS> 0 0
0 0
300 300
<COMMON> 813 813
<OTHER-SE> (59,765) (38,765)
<TOTAL-LIABILITY-AND-EQUITY> 93 93
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 21,000 144,713
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (21,000) (144,713)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> (21,000) (144,713)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (21,000) (144,713)
<EPS-BASIC> (0.03) (0.18)
<EPS-DILUTED> (0.03) (0.18)
</TABLE>
EXHIBIT 99.1
Nevada Revised Statutes
78.7502. Discretionary and mandatory indemnification of officers,
directors, employees and agents: General provisions.
1. A corporation may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative,
except an action by or in the right of the corporation, by reason of the fact
that he is or was a director, officer, employee or agent of the corporation, or
is or was serving at the request of the corporation as a director, officer or
employee or agent of another corporation, partnership, joint venture, trust or
other enterprise, against expenses, including attorneys' fees, judgment, fines
and amounts paid in settlement actually and reasonably incurred by him in
connection with the action, suit or proceeding if he acted in good faith and in
a manner which he reasonably believed to be in and not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction or upon a plea of nolo contendere or its equivalent, does not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in and not opposed to the best
interests of the corporation, and that, with respect to any criminal action or
proceeding, he had reasonable cause to believe that his conduct was unlawful.
2. A corporation may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action or
suit by or in the right of the corporation to procure a judgment in its favor by
reason of the fact that he is or was a director, officer, employee or agent of
the corporation, or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against expenses, including amounts paid in
settlement and attorneys' fees actually and reasonably incurred by him in
connection with the defense or settlement of the action or suit if he acted in
good faith and in a manner which he reasonably believed to be in or not opposed
to the best interests of the corporation. Indemnification may not be made for
any claim, issue or matters to which such a person has been adjudged by a court
of competent jurisdiction, after exhaustion of all appeals therefrom, to be
liable to the corporation or for amounts paid in settlement to the corporation,
unless and only to the extent that the court in which the action or suit was
brought or other court of competent jurisdiction determines upon application
that in view of all the circumstances of the case, the person is fairly and
reasonably entitled to indemnify for such expenses as the court deems proper.
3. To the extent that a director, officer, employee or agent of a
corporation has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in subsections 1 and 2, or in defense of
any claim, issue or matter therein, the corporation shall indemnify him against
expenses, including attorneys' fees, actually and reasonably incurred by him in
connection with the defense.
