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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August 19, 1997
AMERICAN TIRE CORPORATION
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(Exact name of registrant as specified in its charter)
NEVADA 33-94318-C 87-0535207
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(State or other jurisdiction (Commission File Number) (IRS Employer ID No.)
of incorporation)
1643 Nevada Highway, Boulder City, Nevada 89005
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(Address of principal executive office)
Registrant's telephone number, including area code: (702) 293-1930
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446 West Lake Avenue, Ravenna, Ohio 44266
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On August 19, 1997, the Registrant entered into an agreement with a
principal shareholder and former officer and director, Dennis S. Chrobak
("Chrobak"), to resolve all disputes between them relating to Chrobak's
employment and ownership interest in the Registrant. In connection therewith
the Registrant has agreed to pay Chrobak:
1. $80,000, the amount of Chrobak's accrued salary under his employment
agreement, which amount represents the aggregate amount of Chrobak's monthly
employment compensation for the period from October 1996 through May 1997;
2. $30,000, towards the recission and cancellation of an October 1996
transaction between the Registrant and Chrobak, wherein the Registrant had
issued to Chrobak 15,000 shares of the Registrant's common stock in exchange
for cancellation of a promissory note from the Registrant to Mr. Chrobak in
the principal amount of $30,000; and
3. $200,000, towards the purchase and cancellation of 1,255,000 shares
of the Registrant's common stock beneficially owned by Chrobak (the "Chrobak
Shares"). The Chrobak Shares had been issued to Chrobak in February 1995 in
connection with the organization of the Registrant. The Registrant has agreed
pay Chrobak $10,000 per month for 20 consecutive months beginning September 1,
1997.
On August 19, 1997, the Registrant had 4,567,248 shares of its common
stock issued and outstanding. After giving effect to the cancellation of the
1,270,000 shares of common stock pursuant to the above transaction, the
Company will have 3,297,248 shares of common stock outstanding.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunder duly authorized.
AMERICAN TIRE CORPORATION
Date: August 27, 1997 /S/Richard A. Steinke
