Securities and Exchange Commission
Washington, D.C. 20549
_______________
Form 10-SB
______________
GENERAL FORM FOR REGISTRATION OF SECURITIES
PURSUANT TO SECTION 12(b) OR 12(g) OF
THE SECURITIES EXCHANGE ACT OF 1934
WINGS & THINGS, INC.
(Name of registrant in its charter)
NEVADA 87-0464667
(State of incorporation) (I. R. S. Employer Identification No.)
369 East 900 South, Suite 149
Salt Lake City, Utah 84111
(801) 323-2395
(Address and telephone number of principal executive offices
and principal place of business)
________________
Securities registered pursuant to Section 12(b) of the Act:
None
________________
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, par value $.001
Title of each class
<PAGE>
Table of Contents
PART I
Item 1: Description of Business.............................................3
Item 2: Management's Discussion and Analysis or Plan of Operation...........6
Item 3: Description of Property.............................................6
Item 4: Security Ownership of Certain Beneficial Owners and Management......6
Item 5: Directors, Executive Officers, Promoters and Control Persons........7
Item 6: Executive Compensation..............................................8
Item 7: Certain Relationships and Related Transactions......................8
Item 8: Description of Securities...........................................8
PART II
Item 1: Market Price for Common Equity and Related Stockholder Matters......8
Item 2: Legal Proceedings...................................................9
Item 3: Changes in and Disagreements with Accountants.......................9
Item 4: Recent Sales of Unregistered Securities.............................9
Item 5: Indemnification of Directors and Officers...........................9
PART F/S
Index to Financial Statements...............................................9
PART III
Item 1: Index to and Description of Exhibits...............................10
<PAGE>
FORWARD LOOKING STATEMENTS
In this registration statement references to "Wings & Things," "we,"
"us," and "our" refer to Wings & Things, Inc.
This Form 10-SB contains certain forward-looking statements. For this
purpose any statements contained in this Form 10-SB that are not statements of
historical fact may be deemed to be forward-looking statements. Without
limiting the foregoing, words such as "may," "will," "expect," "believe,"
"anticipate," "estimate" or "continue" or comparable terminology are intended
to identify forward-looking statements. These statements by their nature
involve substantial risks and uncertainties, and actual results may differ
materially depending on a variety of factors, many of which are not within
Wings & Things's control. These factors include but are not limited to
economic conditions generally and in the industries in which Wings & Things
may participate; competition within Wings & Things's chosen industry,
including competition from much larger competitors; technological advances and
failure by Wings & Things to successfully develop business relationships.
ITEM 1: DESCRIPTION OF BUSINESS
Business Development
Wings & Things was originally incorporated in the state of Utah on March
11, 1986 as WorldNet, Inc. of Utah ("WorldNet Utah") and was a wholly owned
subsidiary of Nautilus Entertainment, Inc., a Nevada corporation. WorldNet
Utah was formed to lease, sell and market the Hystar airship and the Burket
Mill, a waste milling device. However, the venture was found to be cost
prohibitive and WorldNet Utah ceased such activities in 1986. WorldNet Utah
did not engage in any further commercial operations. On December 9, 1997,
WorldNet Utah's wholly owned subsidiary, Wings & Things, Inc., was
incorporated in the state of Nevada. WorldNet Utah merged with such wholly
owned subsidiary on March 10, 2000 solely to change its domicile from Utah to
Nevada. Wings & Things does not have active business operations and remains a
subsidiary of Nautilus Entertainment, Inc., now called VIP WorldNet, Inc.
Wings & Things has not recorded any revenues for the past two fiscal
years and our independent auditors have expressed doubt that we can continue
as a going concern unless we develop assets and profitable operations. We
have voluntarily filed this registration statement to become a reporting
company.
Our Plan
Our business plan is to seek, investigate, and, if warranted, acquire an
interest in a business opportunity. Our acquisition of a business opportunity
may be made by merger, exchange of stock, or otherwise. We have very limited
sources of capital, and we probably will only be able to take advantage of one
business opportunity. At the present time we have not identified any business
opportunity that we plan to pursue, nor have we reached any agreement or
definitive understanding with any person concerning an acquisition.
Our search for a business opportunity will not be limited to any
particular geographical area or industry. Our management has unrestricted
discretion in seeking and participating in a business opportunity, subject to
the availability of such opportunities, economic conditions and other factors.
Our management believes that companies who desire a public market to enhance
liquidity for current shareholders, or plan to acquire additional assets
through issuance of securities rather than for cash will be potential merger
or acquisition candidates.
The selection of a business opportunity in which to participate is
complex and extremely risky and will be made by management in the exercise of
its business judgement. There is no assurance that we will be able to
identify and acquire any business opportunity which will ultimately prove to
be beneficial to us and our shareholders.
3
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Our activities are subject to several significant risks which arise
primarily as a result of the fact that we have no specific business and may
acquire or participate in a business opportunity based on the decision of
management which will, in all probability, act without consent, vote, or
approval of our shareholders.
Investigation and Selection of Business Opportunities
A decision to participate in a specific business opportunity may be made
upon our management's analysis of the quality of the other company's
management and personnel, the anticipated acceptability of new products or
marketing concept, the merit of technological changes, the perceived benefit
that company will derive from becoming a publicly held entity, and numerous
other factors which are difficult, if not impossible, to analyze through the
application of any objective criteria. In many instances, we anticipate that
the historical operations of a specific business opportunity may not
necessarily be indicative of the potential for the future because of the
possible need to shift marketing approaches substantially, expand
significantly, change product emphasis, change or substantially augment
management, or make other changes. We will be dependent upon the owners of a
business opportunity to identify any such problems which may exist and to
implement, or be primarily responsible for the implementation of, required
changes.
Our management will analyze the business opportunities, however, none of
our management are professional business analysts (See "Directors and
Executive Officers," below). Our management might hire an outside consultant
to assist in the investigation and selection of business opportunities. Since
our management has no current plans to use any outside consultants or advisors
to assist in the investigation and selection of business opportunities, no
policies have been adopted regarding use of such consultants or advisors. We
have not established the criteria to be used in selecting such consultants or
advisors, the service to be provided, the term of service, or the total amount
of fees that may be paid. However, because of our limited resources, it is
likely that any such fee we agree to pay would be paid in stock and not in
cash.
In our analysis of a business opportunity we anticipate that we will
consider, among other things, the following factors:
(1) Potential for growth and profitability, indicated by new
technology, anticipated market expansion, or new products;
(2) Our perception of how any particular business opportunity will be
received by the investment community and by our stockholders;
(3) Whether, following the business combination, the financial
condition of the business opportunity would be, or would have a significant
prospect in the foreseeable future of becoming sufficient to enable our
securities to qualify for listing on a exchange or on a national automated
securities quotation system, such as NASDAQ.
(4) Capital requirements and anticipated availability of required
funds, to be provided by us or from operations, through the sale of additional
securities, through joint ventures or similar arrangements, or from other
sources;
(5) The extent to which the business opportunity can be advanced;
(6) Competitive position as compared to other companies of similar size
and experience within the industry segment as well as within the industry as a
whole;
(7) Strength and diversity of existing management, or management
prospect that are scheduled for recruitment;
4
<PAGE>
(8) The cost of our participation as compared to the perceived tangible
and intangible values and potential; and
(9) The accessibility of required management expertise, personnel, raw
materials, services, professional assistance, and other required items.
No one of the factors described above will be controlling in the
selection of a business opportunity. Management will attempt to analyze all
factors appropriate to each opportunity and make a determination based upon
reasonable investigative measures and available data. Potentially available
business opportunities may occur in many different industries and at various
stages of development. Thus, the task of comparative investigation and
analysis of such business opportunities will be extremely difficult and
complex. Potential investors must recognize that, because of our limited
capital available for investigation and management's limited experience in
business analysis, we may not discover or adequately evaluate adverse facts
about the opportunity to be acquired.
Form of Acquisition
We cannot predict the manner in which we may participate in a business
opportunity. Specific business opportunities will be reviewed as well as our
needs and desires and those of the promoters of the opportunity. The legal
structure or method deemed by management to be suitable will be selected based
upon our review and our relative negotiating strength. Such structure may
include, but is not limited to, leases, purchase and sale agreements,
licenses, joint ventures and other contractual arrangements. We may act
directly or indirectly through an interest in a partnership, corporation or
other form of organization. We may be required to merge, consolidate or
reorganize with other corporations or forms of business organization. In
addition, our present management and stockholders most likely will not have
control of a majority of our voting shares following a merger or
reorganization transaction. As part of such a transaction, our existing
directors may resign and new directors may be appointed without any vote by
our stockholders.
Competition
We expect to encounter substantial competition in our effort to locate
attractive opportunities. Business development companies, venture capital
partnerships and corporations, venture capital affiliates of large industrial
and financial companies, small investment companies, and wealthy individuals
will be our primary competition. Many of these entities will have
significantly greater experience, resources and managerial capabilities than
we do and will be in a better position than we are to obtain access to
attractive business opportunities. We also will experience competition from
other public "blind pool" companies, many of which may have more funds
available.
Employees
We currently have no employees. Our management expects to confer with
consultants, attorneys and accountants as necessary. We do not anticipate a
need to engage any full-time employees so long as we are seeking and
evaluating business opportunities. We will determine the need for employees
based upon the specific business opportunity.
Reports to Security Holders
Wings & Things has voluntarily elected to file this Form 10-SB
registration statement in order to become a reporting company under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). Following
the effective date of this registration statement, we will be required to
comply with the reporting requirements of the Exchange Act. We will file
annual, quarterly and other reports with the Securities and Exchange
Commission ("SEC"). We also will be subject to the proxy solicitation
requirements of the Exchange Act and, accordingly, will furnish an annual
report with audited financial statements to our stockholders.
5
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Available Information
Copies of this registration statement may be inspected, without charge,
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-0300. Copies of this material
also should be available through the Internet by using the SEC's EDGAR
Archive, which is located at http://www.sec.gov.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Plan of Operation
We have no assets and have experienced losses from inception. For the
fiscal year ended December 31, 1999 and for the three month period ended March
31, 2000, we had no cash on hand and total current liabilities of $40,000.
The $40,000 account payable is owed to a Mutual Ventures Corporation for
professional fees incurred during 1999. Management expects to pay off such
account with cash once we establish revenues or may convert the debt into
common shares. We have no commitments for capital expenditures for the next
twelve months.
As of the date of this Form 10-SB, we have yet to generate positive cash
flow. Since inception, we have primarily financed our operations through the
sale of our common stock and we believe that our current cash needs can be met
by loans from our directors, officers and shareholders for at least the next
twelve months. However, if we obtain a business opportunity, it may be
necessary to raise additional capital. This may be accomplished by selling
our common stock. We intend to issue such stock pursuant to exemptions
provided by federal and state securities laws. The purchasers and manner of
issuance will be determined according to our financial needs and the available
exemptions. We do not currently intend to make a public offering of our
stock.
Our management intends to actively seek business opportunities during the
next twelve months.
ITEM 3: DESCRIPTION OF PROPERTIES
We do not currently own or lease any property. We utilize office space
in the office of one of our shareholders at no cost. Until we pursue a viable
business opportunity and recognize income, we will not seek independent office
space.
ITEM 4: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT
The following table sets forth the beneficial ownership of our
outstanding common stock of our management and each person or group known by
us to own beneficially more than 5% of our outstanding common stock.
Beneficial ownership is determined in accordance with the rules of the SEC and
generally includes voting or investment power with respect to securities.
Except as indicated by footnote, the persons named in the table below have
sole voting power and investment power with respect to all shares of common
stock shown as beneficially owned by them. The percentage of beneficial
ownership is based on 17,000,000 shares of common stock outstanding as of
March 31, 2000.
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<PAGE>
CERTAIN BENEFICIAL OWNERS
Common Stock Beneficially Owned
--------------------------------
Name and Address of Number of Shares of
Beneficial Owners Common Stock Percentage of Class
- ------------------------------ ------------------- -------------------
VIP WorldNet, Inc. 15,010,450 (1) 88.2%
154 E. Ford Avenue
Salt Lake City, Utah 84124
(1) VIP WorldNet, Inc. holds 15,000,000 shares and its President, Joanne
Clinger, beneficially owns 10,450 shares of our common stock.
MANAGEMENT
Common Stock Beneficially Owned
--------------------------------
Name and Address of Number of Shares of
Beneficial Owners Common Stock Percentage of Class
- ------------------------------ ------------------- -------------------
Jeanne Ball 200 *
369 East 900 South, Suite 149
Salt Lake City, Utah 84111
* Less than 1%
ITEM 5: DIRECTORS AND EXECUTIVE OFFICERS
Our executive officers and directors and their respective ages, positions
and term of office are set forth below. Biographical information for each of
those persons is also presented below. Our bylaws require one or more
directors who serve for terms of one year. Our executive officers are chosen
by our Board of Directors and serve at its discretion. There are no existing
family relationships between or among any of our executive officers or
directors.
Director
Name Age Position Held or Officer Since
- ----------------- ---- -------------------- ----------------
Anita Patterson 33 President, Director December 9, 1997
Jeanne Ball 42 Secretary/Treasurer, Director February 9, 1998
Anita Patterson. Ms Patterson was the founding officer and director of
Wings & Things. She was the Secretary/Treasurer and a Director of Yellow
Pines Corporation since April 7, 1999. From 1996 to the present she has
worked as a paralegal specializing in corporate law for Principal Holdings,
Inc. In 1994 she received an Associate of Arts degree in the paralegal
program from Phillips Junior College. She attended Weber State University
during 1986 and 1987. She is a Director of Earth Products Technologies, Inc.,
a reporting company.
Jeanne Ball. Ms Ball was appointed a director and officer shortly after
our incorporation. For the past five years, Ms Ball, has worked as an
independent contractor performing duties of a legal secretary for an attorney.
7
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ITEM 6: EXECUTIVE COMPENSATION
None of our named executive officers received any cash compensation,
bonuses, stock appreciation rights, long term compensation, stock awards or
long-term incentive rights from us during the past three fiscal years. We
have not entered into employment contracts with our executive officers and
their compensation, if any, will be determined at the discretion of our Board
of Directors.
Compensation of Directors
We do not have any standard arrangement for compensation of our directors
for any services provided as director, including services for committee
participation or for special assignments.
ITEM 7: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
We have not engaged in any transactions during the past two years
involving our executive officers, directors, 5% stockholders or immediate
family members of such persons.
Parent Company
VIP WorldNet, Inc. is our parent company and beneficially owns 15,010,450
shares of our common stock. Such shares represent 88.2% of our issued and
outstanding shares.
ITEM 8: DESCRIPTION OF SECURITIES
Common Stock
We are authorized to issue 20,000,000 shares of common stock, par value
$.001, of which 17,000,000 were issued and outstanding as of March 31, 2000.
All shares of common stock have equal rights and privileges with respect to
voting, liquidation and dividend rights. Each share of common stock entitles
the holder thereof (i) to one non-cumulative vote for each share held of
record on all matters submitted to a vote of the stockholders, (ii) to
participate equally and to receive any and all such dividends as may be
declared by the Board of Directors out of funds legally available; and (iii)
to participate pro rata in any distribution of assets available for
distribution upon liquidation of the Company. Our stockholders have no
preemptive rights to acquire additional shares of common stock or any other
securities.
Preferred Stock
We have not authorized or issued preferred stock.
PART II
ITEM 1: MARKET PRICE FOR COMMON EQUITY
AND RELATED STOCKHOLDER MATTERS
We have approximately 76 stockholders of record and 1,989,350 common
shares are free trading and 15,010,650 are restricted shares as that term is
defined in Rule 144. We do not have a public trading market, however, we
intend to apply for a listing on the over-the-counter market. We have not
declared dividends on our common stock and do not anticipate paying dividends
on our common stock in the foreseeable future.
8
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ITEM 2: LEGAL PROCEEDINGS
We are not a party to any proceedings or threatened proceedings as of the
date of this filing.
ITEM 3: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
We have had no change in, or disagreements with, our principal
independent accountant during our last two fiscal years.
ITEM 4: RECENT SALES OF UNREGISTERED SECURITIES
The following discussion describes all securities sold by us within the
past three years without registration:
On December 5, 1997 Wings and Things issued 100 common shares for $1.00
to the founding director and officer, Anita Patterson. Such shares were
subsequently canceled after the domicile merger. The issuance of such shares
was exempt from registration under the Securities Act of 1933 by reason of
Section 4(2) as a private transaction not involving a public distribution.
ITEM 5: INDEMNIFICATION OF DIRECTORS AND OFFICERS
Pursuant to Nevada Revised Statutes Section 78.7502 and 78.751 our
Articles of Incorporation and bylaws provide for the indemnification of
present and former directors and officers and each person who serves at our
request as our officer or director. Indemnification for a director is
mandatory and indemnification for an officer, agent or employee is permissive.
We will indemnify such individuals against all costs, expenses and liabilities
incurred in a threatened, pending or completed action, suit or proceeding
brought because such individual is our director or officer. Such individual
must have conducted himself in good faith and reasonably believed that his
conduct was in, or not opposed to, our best interest. In a criminal action he
must not have had a reasonable cause to believe his conduct was unlawful.
This right of indemnification shall not be exclusive of other rights the
individual is entitled to as a matter of law or otherwise.
We will not indemnify an individual adjudged liable due to his negligence
or wilful misconduct toward us, adjudged liable to us, or if he improperly
received personal benefit. Indemnification in a derivative action is limited
to reasonable expenses incurred in connection with the proceeding. Also, we
are authorized to purchase insurance on behalf of an individual for
liabilities incurred whether or not we would have the power or obligation to
indemnify him pursuant to our bylaws.
Our bylaws provide that individuals may receive advances for expenses if
the individual provides a written affirmation of his good faith belief that he
has met the appropriate standards of conduct and he will repay the advance if
he is judged not to have met the standard of conduct.
PART F/S
INDEX TO FINANCIAL STATEMENTS
Wings & Things, Inc. Consolidated Financial Statements March 31, 2000,
December 31, 1999 and 1998.
9
<PAGE>
Wings & Things, Inc.
Consolidated Financial Statements
March 31, 2000, December 31, 1999 and 1998
<PAGE> 10
C O N T E N T S
Independent Auditors' Report ............................................ 3
Consolidated Balance Sheets ..............................................4
Consolidated Statements of Operations ....................................5
Consolidated Statements of Stockholders' Equity.......................... 6
Consolidated Statements of Cash Flows ................................... 8
Notes to the Consolidated Financial Statements .......................... 9
<PAGE> 11
CROUCH, BIERWOLF & CHISHOLM
Certified Public Accountants
50 West Broadway, Suite 1130
Salt Lake City, Utah 84101
Office (801) 363-1175
Fax (801) 363-0615
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Stockholders
of Wings & Things, Inc.
We have audited the accompanying consolidated balance sheets of Wings &
Things, Inc. (a development stage company) as of March 31, 2000, December 31,
1999 and 1998 and the related consolidated statements of operations,
stockholders' equity and cash flows for the three months ended March 31, 2000,
for the years ended December 31, 1999, 1998 and from inception March 11, 1986
through March 31, 2000. These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statement 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 included assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Wings &
Things, Inc. (a development stage company) as of March 31, 2000, December 31,
1999 and 1998 and the results of its operations and cash flows for the three
months ended March 31, 2000, for the years ended December 31, 1999, 1998 and
from inception March 11, 1986 through March 31, 2000 in conformity with
generally accepted accounting principles.
The accompanying consolidated financial statements have been prepared
assuming that the Company will continue as a going concern. The Company has
suffered recurring losses from operations which raises substantial doubt about
its ability to continue as a going concern. Management's plans in regard to
these matters are described in Note 2. The financial statements do not
include any adjustments that might result from the outcome of this
uncertainty.
/s/ Crouch, Bierwolf and Chisholm
Salt Lake City, Utah
April 5, 2000
<PAGE> 12
Wings & Things, Inc.
(A Development Stage Company)
Consolidated Balance Sheets
ASSETS
March 31, December 31,
------------- --------------------------
2000 1999 1998
------------- ------------ -------------
Cash(Note 1) $ - $ - $ -
------------- ------------ -------------
TOTAL ASSETS $ - $ - $ -
============= ============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - related party
(Note 4) $ 40,000 40,000 -
------------- ------------ -------------
Total Liabilities 40,000 40,000 -
------------- ------------ -------------
STOCKHOLDERS' EQUITY
Common stock, $.001 par value;
20,000,000 shares authorized;
17,000,000, 17,000,100 and
17,000,100 shares issued and
outstanding 17,000 17,000 17,000
Deficit Accumulated during the
development stage (57,000) (57,000) (17,000)
------------- ------------ -------------
Total Stockholders' Equity (40,000) (40,000) -
------------- ------------ -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ - $ - $ -
============= ============ =============
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE> 13
Wings & Things, Inc.
(A Development Stage Company)
Consolidated Statements of Operations
<TABLE>
<CAPTION>
From
For the Three Inception on
Months Ended For the Years Ended March 11, 1986
March 31, December 31, to March 31,
2000 1999 1998 2000
------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ -
------------- ------------ ----------- -------------
EXPENSES
General & Administrative - 40,000 - 57,000
------------- ------------ ----------- -------------
TOTAL EXPENSES - 40,000 - 57,000
------------- ------------ ----------- -------------
NET INCOME (LOSS) $ - $ (40,000) $ - $ (57,000)
============= ============ =========== =============
LOSS PER SHARE $ - $ (0.002) $ - $ (0.003)
============= ============ =========== =============
WEIGHTED AVERAGE SHARES
OUTSTANDING 17,000,000 17,000,100 17,000,100 17,000,015
============= ============ =========== =============
The accompanying notes are an integral part of these financial statements.
-5-
</TABLE>
<PAGE> 14
Wings & Things, Inc.
(A Development Stage Company)
Consolidated Statements of Stockholders' Equity
From Inception on March 11, 1986 through March 31, 2000
Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage
------------- ------------- ----------- ------------
Issuance of shares for
marketing rights 17,000,000 $ 17,000 $ - $ -
Net (loss) for the year
ended December 31, 1986 - - - (17,000)
Net (loss) for the year
ended December 31, 1987 - - - -
Net (loss) for the year
ended December 31, 1988 - - - -
Net (loss) for the year
ended December 31, 1989 - - - -
Net (loss) for the year
ended December 31, 1990 - - - -
Net (loss) for the year
ended December 31, 1991 - - - -
Net (loss) for the year
ended December 31, 1992 - - - -
Net (loss) for the year
ended December 31, 1993 - - - -
------------- ------------- ----------- ------------
Balance-December 31, 1993 17,000,000 17,000 - (17,000)
Net (loss) for the year
ended December 31, 1994 - - - -
------------- ------------- ----------- ------------
Balance-December 31, 1994 17,000,000 17,000 - (17,000)
Net (loss) for the year
ended December 31, 1995 - - - -
------------- ------------- ----------- ------------
Balance-December 31, 1995 17,000,000 17,000 - (17,000)
Net (loss) for the year
ended December 31, 1996 - - - -
------------- ------------- ----------- ------------
Balance-December 31, 1996 17,000,000 17,000 - (17,000)
Shares issued in formation
of Wings & Things, Inc. 100 - - -
Net (loss) for the year
ended December 31, 1997 - - - -
------------- ------------- ----------- ------------
Balance-December 31, 1997 17,000,100 17,000 - (17,000)
Net (loss) for the year
ended December 31, 1998 - - - -
------------- ------------- ----------- ------------
Balance-December 31, 1998 17,000,100 17,000 - (17,000)
Net (loss) for the year
ended December 31, 1999 - - - (40,000)
------------- ------------- ----------- ------------
Balance-December 31, 1999 17,000,100 17,000 - (57,000)
Cancellation of shares (100) - - -
Net (loss) for the three
months ended March 31,
2000 - - - -
------------- ------------- ----------- ------------
Balance-March 31, 2000 17,000,000 $ 17,000 $ - $ (57,000)
============= ============= =========== ============
The accompanying notes are an integral part of these financial statements.
-6-
<PAGE> 15
Wings & Things, Inc.
(A Development Stage Company)
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
From
For the Three Inception on
Months Ended For the Years Ended March 11, 1986
March 31, December 31, to March 31,
2000 1999 1998 2000
------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Cash Flows From Operating Activities
Net loss $ - $ (40,000) $ - $ (57,000)
Less non-cash items:
Depreciation & amortization - - - 17,000
Increase (decrease) in accounts
payable - 40,000 - 40,000
------------- ------------ ----------- -------------
Net Cash Provided (Used) by
Operating Activities - - - -
------------- ------------ ----------- -------------
Cash Flows from Investing Activities
Net Cash Provided (Used) by
Investing Activities - - - -
------------- ------------ ----------- -------------
Cash Flows from Financing Activities
Net Cash Provided (Used) by
Financing Activities - - - -
------------- ------------ ----------- -------------
Increase in Cash - - - -
------------- ------------ ----------- -------------
Cash and Cash Equivalents at
Beginning of Period - - - -
------------- ------------ ----------- -------------
Cash and Cash Equivalents at
End of Period $ - $ - $ - $ -
============= ============ =========== =============
Supplemental Non-Cash Financing
Transactions:
Stock issued for marketing rights $ - $ - $ - $ 17,000
Cash paid for:
Interest $ - $ - $ - $ -
Income taxes $ - $ - $ - $ -
The accompanying notes are an integral part of these financial statements.
-7-
</TABLE>
<PAGE> 16
Wings & Things, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2000, December 31, 1999 and 1998
NOTE 1 - Summary Of Significant Accounting Policies
a. Organization & Consolidation Policy
Wings & Things, Inc. (the Company), a Nevada corporation, was
incorporated on December 9, 1997. On March 10, 2000 the Company merged with
Yellow Pines Corporation, a Utah corporation. (Yellow Pines). The Company is
the surviving corporation.
Yellow Pines, formerly known as WorldNet, Inc., was incorporated
March 11, 1986 to lease, sell, and market airships, which rights were acquired
from VIP Worldnet, Inc. initially the only shareholder. The technology to
further develop the airship by the parent company proved to be prohibitive,
and shortly after the acquisition of the marketing rights further activity
ceased. Yellow Pines has been inactive since that date.
The merger was recorded under the pooling of interest method of
accounting. Each share of the Company remained outstanding as one fully paid
and non-assessable share of capital stock of the surviving corporation, and
each share of Yellow Pines was converted into one fully paid and
non-assessable share of capital stock of the surviving corporation.
The Company incurred no revenue, expenses and had neither assets nor
liabilities on its balance sheet from the date of its inception to the date of
the merger. Therefore, the accompanying financial statements present the
financial condition and results of operations of Yellow Pines from its
inception through the merger date and of the surviving entity, the Company, as
of the merger date.
b. Recognition of Revenue
The Company recognizes income and expense on the accrual basis of
accounting.
c. Earnings (Loss) Per Share
The computation of earnings per share of common stock is based on
the weighted average number of shares outstanding at the date of the financial
statements.
d. Cash and Cash Equivalents
The company considers all highly liquid investments with maturities
of three months or less to be cash equivalents.
-8-
<PAGE> 17
Wings & Things, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2000, December 31, 1999 and 1998
NOTE 1 - Summary Of Significant Accounting Policies (continued)
e. Provision for Income Taxes
No provision for income taxes have been recorded due to net
operating loss carryforwards totalling approximately $57,000 that will be
offset against future taxable income. These NOL carryforwards began to expire
in the year 2001. No tax benefit has been reported in the financial
statements because the Company believes there is a 50% or greater chance the
carryforward will expire unused.
Deferred tax asset and the valuation account is as follows at March
31, 2000, December 31, 1999 and 1998:
March 31, December 31,
2000 1999 1998
------------- ------------- -------------
Deferred tax asset:
NOL carryforward $ 19,000 $ 19,000 $ 6,000
Valuation allowance (19,000) (19,000) (6,000)
------------- ------------- -------------
$ - $ - $ -
============= ============= =============
f. Use of 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
statement and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 2 - Going Concern
The accompanying financial statements have been prepared assuming
that the company will continue as a going concern. The company has no assets
and has had recurring operating losses for the past several years and is
dependent upon financing to continue operations. The financial statements do
not include any adjustments that might result from the outcome of this
uncertainty. It is management's plan to find an operating company to merge
with, thus creating necessary operating revenue.
-9-
<PAGE> 18
Wings & Things, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2000, December 31, 1999 and 1998
NOTE 3 - Capitalization
In 1986, the Company issued 17,000,000 shares of common stock for
the marketing rights to an airship. The value of this issuance was $17,000.
During 1997, the Company issued 100 shares of stock in the formation
of Wings & Things, Inc., and subsequently canceled these shares.
NOTE 4 - Related Party Transactions
During the year ended December 31, 1999, the Company incurred
$40,000 of professional fees payable to professionals affiliated with Mutual
Ventures Corporation. An officer of the Company is also an officer of Mutual
Ventures Corporation.
NOTE 5 - Development Stage Company
The Company is a development stage company as defined in Financial
Accounting Standards Board Statement No. 7. It is concentrating substantially
all of its efforts in raising capital and searching for a business operation
with which to merge, or assets to acquire, in order to generate significant
operations.
-10-
<PAGE> 19
PART III
ITEM 1: INDEX TO AND DESCRIPTION OF EXHIBITS
Exhibit
Number Description Location
- ------- -------------- ----------
2.1 Articles of Incorporation, dated March 11, 1986 See attached
2.2 Articles of Merger filed March 10, 2000 See attached
2.3 Bylaws of Wings & Things, Inc. See attached
27 Financial Data Schedule See attached
SIGNATURES
In accordance with Section 12 of the Securities Exchange Act of 1934, the
registrant caused this registration statement to be signed on its behalf by
the undersigned, who is duly authorized.
4/25/00
Date_________________________ Wings & Things, Inc.
/s/ Anita Patterson
By: _______________________________
Anita Patterson, President
<December 9, 1997 Date Stamp for the Secretary of State
for the State of Nevada Appears here>
ARTICLES OF INCORPORATION
OF
WINGS & THINGS, INC.
The undersigned, natural person of eighteen years or more of age, acting as
incorporator of a Corporation (the "Corporation") under the Nevada Revised
Statutes, adopts the following Articles of Incorporation for the Corporation:
ARTICLE I
NAME OF CORPORATION
The name of the Corporation is Wings & Things, Inc..
ARTICLE II
SHARES
The amount of the total authorized capital stock of the Corporation is
20,000,000 shares of common stock, par value $.001 per share. Each share of
common stock shall have one (1) vote. Such stock may be issued from time to
time without any action by the stockholders for such consideration as may be
fixed from time to time by the Board of Directors, and shares so issued, the
full consideration for which has been paid or delivered, shall be deemed the
full paid up stock, and the holder of such shares shall not be liable for any
further payment thereof. Said stock shall not be subject to assessment to pay
the debts of the Corporation, and no paid-up stock and no stock issued as
fully paid, shall ever be assessed or assessable by the Corporation.
The Corporation is authorized to issue 20,000,000 shares of common stock, par
value $.001 per share.
ARTICLE III
REGISTERED OFFICE AND AGENT
The address of the initial registered office of the Corporation is 1025
Ridgeview, Suite 400, Reno, Nevada 89509 and the name of its initial
registered agent at such address is Michael J. Morrison.
ARTICLE IV
INCORPORATOR
The name and address of the incorporator is:
NAME ADDRESS
- ---- -------
Anita Patterson 215 South State Street, Suite 1100
Salt Lake City, Utah 84111
ARTICLE V
DIRECTORS
The members of the governing board of the 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 bylaws of the
Corporation, provided that the number of directors shall not be reduced to
less than one (1). The name and post office address of the first board of
directors, which shall be one in number, are as follows:
NAME ADDRESS
- ---- -------
Anita Patterson 215 South State Street, Suite 1100
Salt Lake City, Utah 84111
ARTICLE VI
GENERAL
A. The board of directors shall have the power and authority to make and
alter, or amend, the bylaws, to fix the amount in cash or otherwise, to be
reserved as working capital, and to authorize and cause to be executed the
mortgages and liens upon the property and franchises of the Corporation.
B. The board of directors shall, from time to time, determine whether, and to
what extent, and at which times and places, and under what conditions and
regulations, the accounts and books of this Corporation, or any of them, shall
be open to the inspection of the stockholders; and no stockholder shall have
the right to inspect any account, book or document of this Corporation except
as conferred by the Statutes of Nevada, or authorized by the directors or any
resolution of the stockholders.
C. No sale, conveyance, transfer, exchange or other disposition of all or
substantially all of the property and assets of this Corporation shall be made
unless approved by the vote or written consent of the stockholders entitled to
exercise two-thirds (2/3) of the voting power of the Corporation.
D. The stockholders and directors shall have the power to hold their
meetings, and keep the books, documents and papers of the Corporation outside
of the State of Nevada, and at such place as may from time to time be
designated by the bylaws or by resolution of the board of directors or
stockholders, except as otherwise required by the laws of the State of Nevada.
E. The Corporation shall indemnify each present and future officer and
director of the Corporation and each person who serves at the request of the
Corporation as an officer or director of the Corporation, whether or not such
person is also an officer or director of the Corporation, against all costs,
expenses and liabilities, including the amounts of judgments, amounts paid in
compromise settlements and amounts paid for services of counsel and other
related expenses, which may be incurred by or imposed on him in connection
with any claim, action, suit, proceeding, investigation or inquiry hereafter
made, instituted or threatened in which he may be involved as a party or
otherwise by reason of any past or future action taken or authorized and
approved by him or any omission to act as such officer or director, at the
time of the incurring or imposition of such costs, expenses, or liabilities,
except such costs, expenses or liabilities as shall relate to matters as to
which he shall in such action, suit or proceeding, be finally adjudged to be
liable by reason of his negligence or willful misconduct toward the
Corporation or such other Corporation in the performance of his duties as such
officer or director, as to whether or not a director or officer was liable by
reason of his negligence or willful misconduct toward the Corporation or such
other Corporation in the performance of his duties as such officer or
director, in the absence of such final adjudication of the existence of such
liability, the board of directors and each officer and director may
conclusively rely upon an opinion of legal counsel selected by or in the
manner designed by the board of directors. The foregoing right of
indemnification shall not be exclusive of other rights to which any such
officer or director may be entitled as a matter of law or otherwise, and shall
inure to the benefit of the heirs, executors, administrators and assigns of
each officer or director.
The undersigned being the individual named in Article III, above, as the
initial registered agent of the Corporation, hereby consents to such
appointment.
/s/ Michael J. Morrison
- -----------------------
The undersigned incorporator executed these Articles of Incorporation,
certifying that the facts herein stated are true this 5th day of December,
1997.
/s/ Anita Patterson
- -------------------
ANITA PATTERSON
STATE OF UTAH )
: ss.
COUNTY OF SALT LAKE )
On this 5th day of December, 1997, personally appeared before me Anita
Patterson, personally known to me or proved to me on the basis of satisfactory
evidence to be the person whose name is signed on the preceding document, and
acknowledged to me that she signed it voluntarily for its stated purpose.
/s/ John Peters
- --------------------
NOTARY PUBLIC
CERTIFICATE OF ACCEPTANCE
OF APPOINTMENT BY RESIDENT AGENT
In the matter of Wings & Things, Inc.
I, Michael Morrison with address at Suite 400, Street 1025 Ridgeview, City of
Reno, State of Nevada, 89509, hereby accept appointment as resident agent of
the above-named corporation in accordance with NRS 78.090.
December 8, 1997.
/s/ Michael Morrison
- --------------------
Signature of Resident Agent
<March 10, 2000 Date Stamp for the Secretary of State
for the State of Nevada Appears here>
ARTICLES OF MERGER FOR
WINGS AND THINGS, INC.,
A NEVADA CORPORATION
Pursuant to the provisions of Section 78.458 of the Nevada Revised Statutes,
Wings and Things, Inc., a Nevada corporation (the "Corporation"), hereby
adopts and files the following Articles of Merger as the surviving corporation
to the merger of Yellow Pines, Inc., a Utah corporation ("Yellow Pines"), with
and into the Corporation:
FIRST: The name and place of incorporation of each corporation which is a
party to this merger is as follows:
Name Place of Incorporation
---- ----------------------
Wings and Things, Inc. Nevada
Yellow Pines, Corp. Utah
SECOND: The Agreement and Plan of Merger (the "Plan") governing the merger
between the Corporation and Yellow Pines, has been adopted by the Board of
Directors of the Corporation and Yellow Pines.
THIRD: The approval of the shareholders of the Corporation and Yellow Pines
was required to effectuate the merger. The number of shares of stock
outstanding in each of the corporations (and the number of votes entitled to
be cast) as of the date of the adoption of the Plan was as follows:
Entity Type of Shares Number of Shares Outstanding
- ------ -------------- ----------------------------
Wings and Things, Inc. Common 100
Yellow Pines, Inc. Common 17,000,000
The number of shares of stock of each corporation which voted for and against
the Plan was as follows:
Entity Type of Shares For Against
- ------ -------------- --- -------
Wings and Things, Inc. Common 100 0
Yellow Pines, Inc. Common 15,004,000 0
FOURTH: The number of votes cast for the Plan by each voting group entitled
to vote was sufficient for approval of the merger by each such voting group.
FIFTH: Following the merger there are no amendments to the Articles of
Incorporation of the surviving company.
SIXTH: The complete executed Plan is on file at the registered office or
other place of business of the Corporation.
SEVENTH: A copy of the Plan will be furnished by the Corporation, on request
and without cost, to any shareholder of either corporation which is a party to
the merger.
EIGHTH: The merger will be effective upon the filing of the Articles of
Merger.
DATED this 25th day of February, 2000.
WINGS AND THINGS, INC., a Nevada corporation
By/s/ Anita Patterson
-------------------
Anita Patterson, President
By /s/ Jeanne Ball
---------------
Jeanne Ball, Secretary
STATE OF UTAH )
: ss.
COUNTY OF SALT LAKE )
On the 25th day of February, 2000, personally appeared before me Anita
Patterson and Jeanne Ball personally known to me or proved to me on the basis
of satisfactory evidence, and who, being by me duly sworn, did say that they
are the President and Secretary of Wings and Things, Inc., and that said
document was signed by them on behalf of said corporation by authority of its
bylaws, and said Anita Patterson and Jeanne Ball acknowledged to me that said
corporation executed the same.
/s/ John Clayton
- ----------------
NOTARY PUBLIC
<Notary Public Stamp appears here>
YELLOW PINES CORPORATION
By/s/ John Peters
---------------
John Peters, President
By/s/ Anita Patterson
-------------------
Anita Patterson, Secretary
STATE OF UTAH )
: ss.
COUNTY OF SALT LAKE )
On the 25th day of February, 2000, personally appeared before me John Peters,
and Anita Patterson personally known to me or proved to me on the basis of
satisfactory evidence, and who, being by me duly sworn, did say that they are
the President and Secretary of Yellow Pines, Inc. and that said document was
signed by them on behalf of said corporation by authority of its bylaws, and
said John Peters and Anita Patterson acknowledged to me that said corporation
executed the same.
/s/ John Clayton
- ----------------
NOTARY PUBLIC
<Notary Public Stamp appears here>
BYLAWS
OF
WINGS & THINGS, INC.
ARTICLE 1. OFFICES
1.1 Business Office. The principal office of the corporation shall be
located at any place either within or outside the State of Nevada as
designated in the corporation's most recent document on file with the Nevada
Secretary of State, Division of Corporations. The corporation may have such
other offices, either within or without the State of Nevada as the board of
directors may designate or as the business of the corporation may require from
time to time.
1.2 Registered Office. The registered office of the corporation shall be
located within the State of Nevada and may be, but need not be, identical with
the principal office. The address of the registered office may be changed
from time to time.
ARTICLE 2. SHAREHOLDERS
2.1 Annual Shareholder Meeting. The annual meeting of the shareholders shall
be held on the 15th day of March in each year, beginning with the year 1998 at
the hour of 2:00 p.m., or at such other time on such other day within such
month as shall be fixed by the board of directors, for the purpose of electing
directors and for the transaction of such other business as may come before
the meeting. If the day fixed for the annual meeting shall be a legal holiday
in the State of Nevada, such meeting shall be held on the next succeeding
business day.
2.2 Special Shareholder Meeting. Special meetings of the shareholders, for
any purpose or purposes described in the meeting notice, may be called by the
president, or by the board of directors, and shall be called by the president
at the request of the holders of not less than one-fourth of all outstanding
votes of the corporation entitled to be cast on any issue at the meeting.
2.3 Place of Shareholder Meeting. The board of directors may designate any
place, either within or without the State of Nevada, as the place of meeting
for any annual or any special meeting of the shareholders, unless by written
consent, which may be in the form of waivers of notice or otherwise, all
shareholders entitled to vote at the meeting designate a different place,
either within or without the State of Nevada, as the place for the holding of
such meeting. If no designation is made by either the directors or unanimous
action of the voting shareholders, the place of meeting shall be at 215 South
State Street #1100, Salt Lake City, Utah 84111.
2.4 Notice of Shareholder Meeting. Written notice stating the date, time,
and place of any annual or special shareholder meeting shall be delivered not
less than 10 nor more than 60 days before the date of the meeting, either
personally or by mail, by or at the direction of the President, the board of
directors, or other persons calling the meeting, to each shareholder of record
entitled to vote at such meeting and to any other shareholder entitled by the
Nevada Revised Statutes (the "Statutes") or the articles of incorporation to
receive notice of the meeting. Notice shall be deemed to be effective at the
earlier of: (1) when deposited in the United States mail, addressed to the
shareholder at his address as it appears on the stock transfer books of the
corporation, with postage thereon prepaid; (2) on the date shown on the return
receipt if sent by registered or certified mail, return receipt requested, and
the receipt is signed by or on behalf of the addressee; (3) when received; or
(4) 3 days after deposit in the United States mail, if mailed postpaid and
correctly addressed to an address other than that shown in the corporation's
current record of shareholders.
If any shareholder meeting is adjourned to a different date, time or place,
notice need not be given of the new date, time and place, if the new date,
time and place is announced at the meeting before adjournment. But if the
adjournment is for more than 30 days or if a new record date for the adjourned
meeting is or must be fixed, then notice must be given pursuant to the
requirements of the previous paragraph, to those persons who are shareholders
as of the new record date.
2.5 Waiver of Notice. A shareholder may waive any notice required by the
Statutes, the articles of incorporation, or these bylaws, by a writing signed
by the shareholder entitled to the notice, which is delivered to the
corporation (either before or after the date and time stated in the notice)
for inclusion in the minutes or filing with the corporate records.
A shareholder's attendance at a meeting:
(a) waives objection to lack of notice or defective notice of the meeting,
unless the shareholder at the beginning of the meeting objects to holding the
meeting or transacting business at the meeting because of lack of notice or
effective notice; and
(b) waives objection to consideration of a particular matter at the meeting
that is not within the purpose or purposes described in the meeting notice,
unless the shareholder objects to considering the matter when it is presented.
2.6 Fixing of Record Date. For the purpose of determining shareholders of
any voting group entitled to notice of or to vote at any meeting of
shareholders, or shareholders entitled to receive payment of any distribution,
or in order to make a determination of shareholders for any other proper
purpose, the board of directors may fix in advance a date as the record date.
Such record date shall not be more than 70 days prior to the date on which the
particular action, requiring such determination of shareholders, is to be
taken. If no record date is so fixed by the board for the determination of
shareholders entitled to notice of, or to vote at a meeting of shareholders,
the record date for determination of such shareholders shall be at the close
of business on the day the first notice is delivered to shareholders. If no
record date is fixed by the board for the determination of shareholders
entitled to receive a distribution, the record date shall be the date the
board authorizes the distribution. With respect to actions taken in writing
without a meeting, the record date shall be the date the first shareholder
signs the consent.
When a determination of shareholders entitled to vote at any meeting of
shareholders has been made as provided in this Section, such determination
shall apply to any adjournment thereof unless the board of directors fixes a
new record date which it must do if the meeting is adjourned to a date more
than 120 days after the date fixed for the original meeting.
2.7 Shareholder List. After fixing a record date for a shareholder meeting,
the corporation shall prepare a list of the names of its shareholders entitled
to be given notice of the meeting. The shareholder list must be available for
inspection by any shareholder, beginning on the earlier of 10 days before the
meeting for which the list was prepared or 2 business days after notice of the
meeting is given for which the list was prepared and continuing through the
meeting, and any adjournment thereof. The list shall be available at the
corporation's principal office or at a place identified in the meeting notice
in the city where the meeting is to be held.
2.8 Shareholder Quorum and Voting Requirements.
2.8.1 Quorum. Except as otherwise required by the Statutes or the articles
of incorporation, a majority of the outstanding shares of the corporation,
represented by person or by proxy, shall constitute a quorum at each meeting
of the shareholders. If a quorum exists, action on a matter, other than the
election of directors, is approved if the votes cast favoring the action
exceed the votes cast opposing the action, unless the articles of
incorporation or the Statutes require a greater number of affirmative votes.
2.8.2 Voting of Shares. Unless otherwise provided in the articles of
incorporation or these bylaws, each outstanding share, regardless of class, is
entitled to one vote upon each matter submitted to a vote at a meeting of
shareholders.
2.9 Quorum and Voting requirements of Voting Groups. If the articles of
incorporation or the Statutes provide for voting by a single voting group on a
matter, action on that matter is taken when voted upon by that voting group.
Once a share is represented for any purpose at a meeting, it is deemed present
for quorum purposes for the remainder of the meeting and for any adjournment
of that meeting unless a new record date is or must be set for that adjourned
meeting.
Shares entitled to vote as a separate voting group may take action on a matter
at a meeting only if a quorum of those shares exists with respect to that
matter. Unless the articles of incorporation or the Statutes provide
otherwise, a majority of the votes entitled to be cast on the matter by the
voting group constitutes a quorum of that voting group for action on that
matter.
If the articles of incorporation or the Statutes provide for voting by two or
more voting groups on a matter, action on that matter is taken only when voted
upon by each of those voting groups counted separately. Action may be taken
by one voting group on a matter even though no action is taken by another
voting group entitled to vote on the matter.
If a quorum exists, action on a matter, other than the election of directors,
by a voting group is approved if the votes cast within the voting group
favoring the action exceed the votes cast opposing the action, unless the
articles of incorporation or the Statutes require a greater number of
affirmative votes.
2.10 Greater Quorum or Voting Requirements. The articles of incorporation
may provide for a greater quorum or voting requirement for shareholders, or
voting groups of shareholders, than is provided for by these bylaws. An
amendment to the articles of incorporation that adds, changes, or deletes a
greater quorum or voting requirement for shareholders must meet the same
quorum requirement and be adopted by the same vote and voting groups required
to take action under the quorum and voting requirement then in effect or
proposed to be adopted, whichever is greater.
2.11 Proxies. At all meetings of shareholders, a shareholder may vote in
person or by proxy which is executed in writing by the shareholder or which is
executed by his duly authorized attorney-in-fact. Such proxy shall be filed
with the Secretary of the corporation or other person authorized to tabulate
votes before or at the time of the meeting. No proxy shall be valid after 11
months from the date of its execution unless otherwise provided in the proxy.
All proxies are revocable unless they meet specific requirements of
irrevocability set forth in the Statutes. The death or incapacity of a voter
does not invalidate a proxy unless the corporation is put on notice. A
transferee for value who receives shares subject to an irrevocable proxy, can
revoke the proxy if he had no notice of the proxy.
2.12 Corporation's Acceptance of Votes.
2.12.1 If the name signed on a vote, consent, waiver, proxy appointment, or
proxy appointment revocation corresponds to the name of a shareholder, the
corporation, if acting in good faith, is entitled to accept the vote, consent,
waiver, proxy appointment, or proxy appointment revocation and give it effect
as the act of the shareholder.
2.12.2 If the name signed on a vote, consent, waiver, proxy appointment, or
proxy appointment revocation does not correspond to the name of a shareholder,
the corporation, if acting in good faith, is nevertheless entitled to accept
the vote, consent, waiver, proxy appointment, or proxy appointment revocation
and give it effect as the act of the shareholder if:
(a) the shareholder is an entity as defined in the Statutes and the name
signed purports to be that of an officer or agent of the entity;
(b) the name signed purports to be that of an administrator, executor,
guardian, or conservator representing the shareholder and, if the corporation
requests, evidence of fiduciary status acceptable to the corporation has been
presented with respect to the vote, consent, waiver, proxy appointment or
proxy appointment revocation;
(c) the name signed purports to be that of a receiver or trustee in
bankruptcy of the shareholder and, if the corporation requests, evidence of
this status acceptable to the corporation has been presented with respect to
the vote, consent, waiver, proxy appointment, or proxy appointment revocation;
or
(d) the name signed purports to be that of a pledgee, beneficial owner, or
attorney-in-fact of the shareholder and, if the corporation requests, evidence
acceptable to the corporation of the signatory's authority to sign for the
shareholder has been presented with respect to the vote, consent, waiver,
proxy appointment or proxy appointment revocation; or
(e) two or more persons are the shareholder as co-tenants or fiduciaries and
the name signed purports to be the name of at least one of the co-owners and
the person signing appears to be acting on behalf of all co-tenants or
fiduciaries.
2.12.3 If shares are registered in the names of two or more persons, whether
fiduciaries, members of a partnership, co-tenants, husband and wife as
community property, voting trustees, persons entitled to vote under a
shareholder voting agreement or otherwise, or if two or more persons
(including proxy holders) have the same fiduciary relationship respecting the
same shares, unless the secretary of the corporation or other officer or agent
entitled to tabulate votes is given written notice to the contrary and is
furnished with a copy of the instrument or order appointing them or creating
the relationship wherein it is so provided, their acts with respect to voting
shall have the following effect:
(a) if only one votes, such act binds all;
(b) if more than one votes, the act of the majority so voting bind all;
(c) if more than one votes, but the vote is evenly split on any particular
matter, each fraction may vote the securities in question proportionately.
If the instrument so filed or the registration of the shares shows that any
tenancy is held in unequal interests, a majority or even split for the purpose
of this Section shall be a majority or even split in interest.
2.12.4 The corporation is entitled to reject a vote, consent, waiver, proxy
appointment or proxy appointment revocation if the secretary or other officer
or agent authorized to tabulate votes, acting in good faith, has reasonable
basis for doubt about the validity of the signature on it or about the
signatory's authority to sign for the shareholder.
2.12.5 The corporation and its officer or agent who accepts or rejects a
vote, consent, waiver, proxy appointment or proxy appointment revocation in
good faith and in accordance with the standards of this Section are not liable
in damages to the shareholder for the consequences of the acceptance or
rejection.
2.12.6 Corporate action based on the acceptance or rejection of a vote,
consent, waiver, proxy appointment or proxy appointment revocation under this
Section is valid unless a court of competent jurisdiction determines
otherwise.
2.13 Action by Shareholders Without a Meeting.
2.13.1 Written Consent. Any action required or permitted to be taken at a
meeting of the shareholders may be taken without a meeting and without prior
notice if one or more consents in writing, setting forth the action so taken,
shall be signed by the holders of outstanding shares having not less than the
minimum number of votes that would be necessary to authorize or take such
action at a meeting at which all shareholders entitled to vote with respect to
the subject matter thereof were present and voted. Action taken under this
Section has the same effect as action taken at a duly called and convened
meeting of shareholders and may be described as such in any document.
2.13.2 Post-Consent Notice. Unless the written consents of all shareholders
entitled to vote have been obtained, notice of any shareholder approval
without a meeting shall be given at least ten days before the consummation of
the action authorized by such approval to (i) those shareholders entitled to
vote who did not consent in writing, and (ii) those shareholders not entitled
to vote. Any such notice must be accompanied by the same material that is
required under the Statutes to be sent in a notice of meeting at which the
proposed action would have been submitted to the shareholders for action.
2.13.3 Effective Date and Revocation of Consents. No action taken pursuant
to this Section shall be effective unless all written consents necessary to
support the action are received by the corporation within a sixty-day period
and not revoked. Such action is effective as of the date the last written
consent is received necessary to effect the action, unless all of the written
consents specify an earlier or later date as the effective date of the action.
Any shareholder giving a written consent pursuant to this Section may revoke
the consent by a signed writing describing the action and stating that the
consent is revoked, provided that such writing is received by the corporation
prior to the effective date of the action.
2.13.4 Unanimous Consent for Election of Directors. Notwithstanding
subsection (a), directors may not be elected by written consent unless such
consent is unanimous by all shares entitled to vote for the election of
directors.
2.14 Voting for Directors. Unless otherwise provided in the articles of
incorporation, every shareholder entitled to vote for the election of
directors has the right to cast, in person or by proxy, all of the votes to
which the shareholder's shares are entitled for as many persons as there are
directors to be elected and for whom election such shareholder has the right
to vote. Directors are elected by a plurality of the votes cast by the shares
entitled to vote in the election at a meeting at which a quorum is present.
ARTICLE 3. BOARD OF DIRECTORS
3.1 General Powers. Unless the articles of incorporation have dispensed with
or limited the authority of the board of directors by describing who will
perform some or all of the duties of a board of directors, all corporate
powers shall be exercised by or under the authority, and the business and
affairs of the corporation shall be managed under the direction, of the board
of directors.
3.2 Number, Tenure and Qualification of Directions. The authorized number of
directors shall be one (1); provided, however, that if the corporation has
less than three shareholders entitled to vote for the election of directors,
the board of directors may consist of a number of individuals equal to or
greater than the number of those shareholders. The current number of
directors shall be within the limit specified above, as determined (or as
amended form time to time) by a resolution adopted by either the shareholders
or the directors. Each director shall hold office until the next annual
meeting of shareholders or until the director's earlier death, resignation, or
removal. However, if his term expires, he shall continue to serve until his
successor shall have been elected and qualified, or until there is a decrease
in the number of directors. Directors do not need to be residents of Nevada
or shareholders of the corporation.
3.3 Regular Meetings of the Board of Directors. A regular meeting of the
board of directors shall be held without other notice than this bylaw
immediately after, and at the same place as, the annual meeting of
shareholders, for the purpose of appointing officers and transacting such
other business as may come before the meeting. The board of directors may
provide, by resolution, the time and place for the holding of additional
regular meetings without other notice than such resolution.
3.4 Special Meetings of the Board of Directors. Special meetings of the
board of directors may be called by or at the request of the president or any
director. The person authorized to call special meetings of the board of
directors may fix any place as the place for holding any special meeting of
the board of directors.
3.5 Notice of, and Waiver of Notice for, Special Director Meeting. Unless
the articles of incorporation provide for a longer or shorter period, notice
of the date, time, and place of any special director meeting shall be given at
least two days previously thereto either orally or in writing. Any director
may waive notice of any meeting. Except as provided in the next sentence, the
waiver must be in writing and signed by the director entitled to the notice.
The attendance of a director at a meeting shall constitute a waiver of notice
of such meeting, except where a director attends a meeting for the express
purpose of objecting to the transaction of any business and at the beginning
of the meeting (or promptly upon his arrival) objects to holding the meeting
or transacting business at the meeting, and does not thereafter vote for or
assent to action taken at the meeting. Unless required by the articles of
incorporation, neither the business to be transacted at, nor the purpose of,
any special meeting of the board of directors need be specified in the notice
or waiver of notice of such meeting.
3.6 Director Quorum and Voting.
3.6.1 Quorum. A majority of the number of directors prescribed by resolution
shall constitute a quorum for the transaction of business at any meeting of
the board of directors unless the articles of incorporation require a greater
percentage.
Unless the articles of incorporation provide otherwise, any or all directors
may participate in a regular or special meeting by, or conduct the meeting
through the use of, any means of communication by which all directors
participating may simultaneously hear each other during the meeting. A
director participating in a meeting by this means is deemed to be present in
person at the meeting.
A director who is present at a meeting of the board of directors or a
committee of the board of directors when corporate action is taken is deemed
to have assented to the action taken unless: (1) the director objects at the
beginning of the meeting (or promptly upon his arrival) to holding or
transacting business at the meeting and does not thereafter vote for or assent
to any action taken at the meeting; and (2) the director contemporaneously
requests his dissent or abstention as to any specific action be entered in the
minutes of the meeting; or (3) the director causes written notice of his
dissent or abstention as to any specific action be received by the presiding
officer of the meeting before its adjournment or to the corporation
immediately after adjournment of the meeting. The right of dissent or
abstention is not available to a director who votes in favor of the action
taken.
3.7 Director Action Without a Meeting. Any action required or permitted to
be taken by the board of directors at a meeting may be taken without a meeting
if all the directors consent to such action in writing. Action taken by
consent is effective when the last director signs the consent, unless, prior
to such time, any director has revoked a consent by a signed writing received
by the corporation, or unless the consent specifies a different effective
date. A signed consent has the effect of a meeting vote and may be described
as such in any document.
3.8 Resignation of Directors. A director may resign at any time by giving a
written notice of resignation to the corporation. Such resignation is
effective when the notice is received by the corporation, unless the notice
specifies a later effective date.
3.9 Removal of Directors. The shareholders may remove one or more directors
at a meeting called for that purpose if notice has been given that a purpose
of the meeting is such removal. The removal may be with or without cause
unless the articles of incorporation provide that directors may only be
removed with cause. If a director is elected by a voting group of
shareholders, only the shareholders of that voting group may participate in
the vote to remove him. A director may be removed only if the number of votes
cast to remove him exceeds the number of votes cast not to remove him.
3.10 Board of Director Vacancies. Unless the articles of incorporation
provide otherwise, if a vacancy occurs on the board of directors, including a
vacancy resulting from an increase in the number of directors, the
shareholders may fill the vacancy. During such time that the shareholders
fail or are unable to fill such vacancies then and until the shareholders act:
(a) the board of directors may fill the vacancy; or
(b) if the board of directors remaining in office constitute fewer than a
quorum of the board, they may fill the vacancy by the affirmative vote of a
majority of all the directors remaining in office.
If the vacant office was held by a director elected by a voting group of
shareholders:
(a) if there are one or more directors elected by the same voting group, only
such directors are entitled to vote to fill the vacancy if it is filled by the
directors; and
(b) only the holders of shares of that voting group are entitled to vote to
fill the vacancy if it is filled by the shareholders.
A vacancy that will occur at a specific later date (by reason of a resignation
effective at a later date) may be filled before the vacancy occurs but the new
director may not take office until the vacancy occurs.
3.11 Director Compensation. By resolution of the board of directors, each
director may be paid his expenses, if any, of attendance at each meeting of
the board of directors and may be paid a stated salary as director or a fixed
sum for attendance at each meeting of the board of directors or both. No such
payment shall preclude any director from serving the corporation in any other
capacity and receiving compensation therefor.
3.12 Director Committees.
3.12.1 Creation of Committees. Unless the article sof incorporation provide
otherwise, the board of directors may create one or more committees and
appoint members of the board of directors to serve on them. Each committee
must have one or more members, who shall serve at the pleasure of the board of
directors.
3.12.2 Selection of Members. The creation of a committee and appointment of
members to it must be approved by the greater of (1) a majority of all the
directors in office when the action is taken or (2) the number of directors
required by the articles of incorporation to take such action.
3.12.3 Required Procedures. Those Sections of this Article 3 which govern
meetings, actions without meetings, notice and waiver of notice, quorum and
voting requirements of the board of directors, apply to committees and their
members.
3.12.4 Authority. Unless limited by the article sof incorporation, each
committee may exercise those aspects of the authority of the board of
directors which the board of directors confers upon such committee in the
resolution creating the committee. Provided, however, a committee may not:
(a) authorize distributions;
(b) approve or propose to shareholders action that the Statutes require be
approved by shareholders;
(c) fill vacancies on the board of directors or on any of its committees;
(d) amend the articles of incorporation pursuant to the authority of
directors to do so;
(e) adopt, amend or repeal bylaws;
(f) approve a plan of merger not requiring shareholder approval;
(g) authorize or approve reacquisition of shares, except according to a
formula or method prescribed by the board of directors; or
(h) authorize or approve the issuance or sale or contract for sale of shares
or determine the designation and relative rights, preference,s and limitations
of a class or series of shares, except that the board of directors may
authorize a committee (or an officer) to do so within limits specifically
prescribed by the board of directors.
ARTICLE 4. OFFICERS
4.1 Number of Officers. The officers of the corporation shall be a
president, a secretary and a treasurer, each of whom shall be appointed by the
board of directors. Such other officers and assistant officers as may be
deemed necessary, including any vice presidents, may also be appointed by the
board of directors. If specifically authorized by the board of directors, an
officer may appoint one or more officers or assistant officers. The same
individual may simultaneously hold more than one office in the corporation.
4.2 Appointment and Term of Office. The officers of the corporation shall be
appointed by the board of directors for a term as determined by the board of
directors. If no term is specified, they shall hold office until the first
meeting of the directors held after the next annual meeting of shareholders.
If the appointment of officers shall not be made at such meeting, such
appointment shall be made as soon thereafter as is convenient. Each officer
shall hold office until his successor shall have been duly appointed and shall
have qualified until his death, or until he shall resign or is removed.
The designation of a specified term does not grant to the officer any contract
rights, and the board may remove the officer at any time prior to the
termination of such term.
4.3 Removal of Officers. Any officer or agent may be removed by the board of
directors at any time, with or without cause. Such removal shall be without
prejudice to the contract rights, if any, of the person so removed.
Appointment of an officer or agent shall not of itself create contract rights.
4.4 Resignation of Officers. Any officer may resign at any time, subject to
any rights or obligations under any existing contracts between the officers
and the corporation, by giving notice to the president or board of directors.
An officer's resignation shall take effect at the time specified therein, and
the acceptance of such resignation shall not be necessary to make it
effective.
4.5 President. Unless the board of directors has designated the chairman of
the board as chief executive officer, the president shall be the chief
executive officer of the corporation and, subject to the control of the board
of directors, shall in general supervise and control all of the business and
affairs of the corporation. Unless there is a chairman of the board, the
president shall, when present, preside at all meetings of the shareholders and
of the board of directors. The president may sign, with the secretary or any
other proper officer of the corporation thereunder authorized by the board of
directors, certificates for shares of the corporation and deeds, mortgages,
bonds, contracts, or other instruments which the board of directors has
authorized to be executed, except in cases where the signing and execution
thereof shall be expressly delegated by the board f directors or by these
bylaws to some other officer or agent of the corporation, or shall be required
by law to be otherwise signed or executed; and in general shall perform all
duties incident to the office of president and such other duties as may be
prescribed by the board of directors from time to time.
4.6 Vice Presidents. If appointed, in the absence of the president or in the
event of his death, inability or refusal to act, the vice president (or in the
event there be more than one vice president, the vice presidents in the order
designate at the time of their election, or in the absence of any designation,
then in the order of their appointment) shall perform the duties of the
president, and when so acting, shall have all the powers of, and be subject
to, all the restrictions upon the president.
4.7 Secretary. The secretary shall: (a) keep the minutes of the proceedings
of the shareholders, the board of directors, and any committees of the board
in one or more books provided for that purpose; (b) see that all notices are
duly given in accordance with the provisions of these bylaws or as required by
law; (c) be custodian of the corporate records; (d) when requested or
required, authenticate any records of the corporation; (e) keep a register of
the post office address of each shareholder which shall be furnished to the
secretary by such shareholder; (f) sign with the president, or a vice
president, certificates for shares of the corporation, the issuance of which
shall have been authorized by resolution of the board of directors; (g) have
general charge of the stock transfer books of the corporation; and (h) in
general perform all duties incident to the office of secretary and such other
duties as from time to time may be assigned by the president or by the board
of directors. Assistant secretaries, if any, shall have the same duties and
powers, subject to the supervision of the secretary.
4.8 Treasurer. The treasurer shall: (a) have charge and custody of and be
responsible for all funds and securities of the corporation; (b) receive and
give receipts for monies due and payable to the corporation from any source
whatsoever, and deposit all such moneys in the name of the corporation in such
bank, trust companies, or other depositaries as shall be selected by the board
of directors; and (c) in general perform all of the duties incident to the
office of treasurer and such other duties as from time to time may be assigned
by the president or by the board of directors. If required by the board of
directors, the treasurer shall give a bond for the faithful discharge of his
or her duties in such sum and with such surety or sureties as the board of
directors shall determine. Assistant treasurers, if any, shall have the same
powers and duties, subject to the supervision of the treasurer.
4.9 Salaries. The salaries of the officers shall be fixed from time to time
by the board of directors.
ARTICLE 5. INDEMNIFICATION OF DIRECTORS,
OFFICERS, AGENTS, AND EMPLOYEES
5.1 Indemnification of Directors. Unless otherwise provided in the articles
of incorporation, the corporation shall indemnify any individual made a party
to a proceeding because the individual is or was a director of the
corporation, against liability incurred in the proceeding, but only if such
indemnification is both (i) determined permissible and (ii) authorized, as
such are defined in subsection (a) of this Section 5.1.
5.1.1 Determination of Authorization. The corporation shall not indemnify a
director under this Section unless:
(a) a determination has been made in accordance with the procedures set forth
in the Statutes that the director met the standard of conduct set forth in
subsection (b) below, and
(b) payment has been authorized in accordance with the procedures set forth
in the Statutes based on a conclusion that the expenses are reasonable, the
corporation has the financial ability to make the payment, and the financial
resources of the corporation should be devoted to this use rather than some
other use by the corporation.
5.1.2 Standard of Conduct. The individual shall demonstrate that:
(a) he or she conducted himself in good faith; and
(b) he or she reasonably believed:
(i) in the case of conduct in his official capacity with the corporation,
that his conduct was in its best interests;
(ii) in all other cases, that his conduct was at least not opposed to its
best interests; and
(iii) in the case of any criminal proceeding, he or she had no reasonable
cause to believe his conduct was unlawful.
5.1.3 Indemnification in Derivative Actions Limited. Indemnification
permitted under this Section in connection with a proceeding by or in the
right of the corporation is limited to reasonable expenses incurred in
connection with the proceeding.
5.1.4 Limitation on Indemnification. The corporation shall not indemnify a
director under this Section of Article 5:
(a) in connection with a proceeding by or in the right of the corporation in
which the director was adjudged liable to the corporation; or
(b) in connection with any other proceeding charging improper personal
benefit to the director, whether or not involving action in his or her
official capacity, in which he or she was adjudged liable on the basis that
personal benefit was improperly received by the director.
5.2 Advance of Expenses for Directors. If a determination is made following
the procedures of the Statutes, that the director has met the following
requirements, and if an authorization of payment is made following the
procedures and standards set forth in the Statutes, then unless otherwise
provided in the articles of incorporation, the corporation shall pay for or
reimburse the reasonable expenses incurred by a director who is a party to a
proceeding in advance of final disposition of the proceeding, if:
(a) the director furnishes the corporation a written affirmation of his good
faith belief that he has met the standard of conduct described in this
section;
(b) the director furnishes the corporation a written undertaking, executed
personally or on his behalf, to repay the advance if it is ultimately
determined that he did not meet the standard of conduct;
(c) a determination is made that the facts then known to those making the
determination would not preclude indemnification under this Section or the
Statutes.
5.3 Indemnification of Officers, Agents and Employees Who Are Not Directors.
Unless otherwise provided in the articles of incorporation, the board of
directors may indemnify and advance expenses to any officer, employee, or
agent of the corporation, who is not a director of the corporation, to the
same extent as to a director, or to any greater extent consistent with public
policy, as determined by the general or specific actions of the board of
directors.
5.4 Insurance. By action of the board of directors, notwithstanding any
interest of the directors in such action, the corporation may purchase and
maintain insurance on behalf of a person who is or was a director, officer,
employee, fiduciary or agent of the corporation, against any liability
asserted against or incurred by such person in that capacity or arising from
such person's status as a director, officer, employee, fiduciary, or agent,
whether or not the corporation would have the power to indemnify such person
under the applicable provisions of the Statutes.
ARTICLE 6. STOCK
6.1 Issuance of Shares. The issuance or sale by the corporation of any
shares of its authorized capital stock of any class, including treasury
shares, shall be made only upon authorization by the board of directors,
unless otherwise provided by statute. The board of directors may authorize
the issuance of shares for consideration consisting of any tangible or
intangible property or benefit to the corporation, including cash, promissory
notes, services performed, contracts or arrangements for services to be
performed, or other securities of the corporation. Shares shall be issued for
such consideration expressed in dollars as shall be fixed from time to time by
the board of directors.
6.2 Certificates for Shares.
6.2.1 Content. Certificates representing shares of the corporation shall at
minimum, state on their face the name of the issuing corporation and that it
is formed under the laws of the State of Nevada; the name of the person to
whom issued; and the number and class of shares and the designation of the
series, if any, the certificate represents; and be in such form as determined
by the board of directors. Such certificates shall be signed (either manually
or by facsimile) by the president or a vice president and by the secretary or
an assistant secretary and may be sealed with a corporate seal or a facsimile
thereof. Each certificate for shares shall be consecutively numbered or
otherwise identified.
6.2.2 Legend as to Class or Series. If the corporation is authorized to
issue different classes of shares or different series within a class, the
designations, relative rights, preferences and limitations applicable to each
class and the variations in rights, preferences and limitations determined for
each series (and the authority of the board of directors to determine
variations for future series) must be summarized on the front or back of each
certificate. Alternatively, each certificate may state conspicuously on its
front or back that the corporation will furnish the shareholder this
information on request in writing and without charge.
6.2.3 Shareholder List. The name and address of the person to whom the
shares represented thereby are issued, with the number of shares and date of
issue, shall be entered on the stock transfer books of the corporation.
6.2.4 Transferring Shares. All certificates surrendered to the corporation
for transfer shall be canceled and no new certificate shall be issued until
the former certificate for a like number of shares shall have been surrendered
and canceled, except that in cash of a lost, destroyed, or mutilated
certificate, a new one may be issued therefor upon such terms and indemnity to
the corporation as the board of directors may prescribe.
6.3 Shares Without Certificates.
6.3.1 Issuing Shares Without Certificates. Unless the articles of
incorporation provide otherwise, the board of directors may authorize the
issue of some or all the shares of any or all of its classes or series without
certificates. The authorization does not affect shares already represented by
certificates until they are surrendered to the corporation.
6.3.2 Information Statement Required. Within a reasonable time after the
issue or transfer of shares without certificates, the corporation shall send
the shareholder a written statement containing, at a minimum, the information
required by the Statutes.
6.4 Registration of the Transfer of Shares. Registration of the transfer of
shares of the corporation shall be made only on the stock transfer books of
the corporation. In order to register a transfer, the record owner shall
surrender the shares to the corporation for cancellation, properly endorsed by
the appropriate person or persons with reasonable assurances that the
endorsements are genuine and effective. Unless the corporation has
established a procedure by which a beneficial owner of shares held by a
nominee is to be recognized by the corporation as the owner, the person in
whose name shares stand in the books of the corporation shall be deemed by the
corporation to be the owner thereof for all purposes.
6.5 Restrictions on Transfer or Registration of Shares. The board of
directors or shareholders may impose restrictions on the transfer or
registration of transfer of shares (including any security convertible into,
or carrying a right to subscribe for or acquire shares). A restriction does
not affect shares issued before the restriction was adopted unless the holders
of the shares are parties to the restriction agreement or voted in favor of or
otherwise consented to the restriction.
A restriction on the transfer or registration of transfer of shares may be
authorized:
(a) to maintain the corporation's status when it is dependent on the number
or identity of its shareholders;
(b) to preserve entitlements, benefits or exemptions under federal or local
laws; and
(c) for any other reasonable purpose.
A restriction on the transfer or registration of transfer of shares may:
(a) obligate the shareholder first to offer the corporation or other persons
(separately, consecutively or simultaneously) an opportunity to acquire the
restricted shares;
(b) obligate the corporation or other persons (separately, consecutively or
simultaneously) to acquire the restricted shares;
(c) require as a condition to such transfer or registration, that any one or
more persons, including the holders of any of its shares, approve the transfer
or registration if the requirement is not manifestly unreasonable; or
(d) prohibit the transfer or the registration of transfer of the restricted
shares to designated persons or classes of persons, if the prohibition is not
manifestly unreasonable.
A restriction on the transfer or registration of transfer of shares is valid
and enforceable against the holder or a transferee of the holder if the
restriction is authorized by this Section and its existence is noted
conspicuously on the front or back of the certificate or is contained in the
information statement required by this Article 6 with regard to shares issued
without certificates. Unless so noted, a restriction is not enforceable
against a person without knowledge of the restriction.
6.6 Corporation's Acquisition of Shares. The corporation may acquire its own
shares and the shares so acquired constitute authorized but unissued shares.
If the articles of incorporation prohibit the reissue of acquired shares, the
number of authorized shares is reduced by the number of shares acquired,
effective upon amendment of the articles of incorporation, which amendment may
be adopted by the shareholders or the board of directors without shareholder
action. The articles of amendment must be delivered to the Secretary of State
and must set forth:
(a) the name of the corporation;
(b) the reduction in the number of authorized shares, itemized by class and
series;
(c) the total number of authorized shares, itemized by class and series,
remaining after reduction of the shares; and
(d) a statement that the amendment was adopted by the board of directors
without shareholder action and that shareholder action was not required.
ARTICLE 7. DISTRIBUTIONS
7.1 Distributions to Shareholders. The board of directors may authorize, and
the corporation may make, distributions to the shareholders of the corporation
subject to any restriction sin the corporation's articles of incorporation and
in the Statutes.
7.2 Unclaimed Distributions. If the corporation has mailed three successive
distributions to a shareholder at the shareholder's address as shown on the
corporation's current record of shareholders and the distributions have been
returned as undeliverable, no further attempt to deliver distributions to the
shareholder need be made until another address for the shareholder is made
known to the corporation, at which time all distributions accumulated by
reason of this Section, except as otherwise provided by law, be mailed to the
shareholder at such other address.
ARTICLE 8. MISCELLANEOUS
8.1 Inspection of Records by Shareholders and Directors. A shareholder or
director of a corporation is entitled to inspect and copy, during regular
business hours at the corporation's principal office, any of the records of
the corporation required to be maintained by the corporation under the
Statutes, if such person gives the corporation written notice of the demand at
least five business days before the date on which such a person wishes to
inspect and copy. The scope of such inspection right shall be as provided
under the Statutes.
8.2 Corporate Seal. The board of directors may provide a corporate seal
which may be circular in form and have inscribed thereon any designation
including the name of the corporation, the state of incorporation, and the
words "Corporate Seal."
8.3 Amendments. The corporation's board of directors may amend or repeal the
corporation's bylaws at any time unless:
(a) the articles of incorporation or the Statutes reserve this power
exclusively to the shareholders in whole or part; or
(b) the shareholders in adopting, amending, or repealing a particular bylaw
provide expressly that the board of directors may not amend or repeal that
bylaw; or
(c) the bylaw either establishes, amends, or deletes, a greater shareholder
quorum or voting requirement.
Any amendment which changes the voting or quorum requirement for the board
must meet the same quorum requirement and be adopted by the same vote and
voting groups required to take action under the quorum and voting requirements
then in effect or proposed to be adopted, whichever are greater.
8.4 Fiscal Year. The fiscal year of the corporation shall be established by
the board of directors.
DATED this 5th day of December, 1997.
/s/ Jeanne Ball
- ---------------
Secretary
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