0001694586-17-000001.txt : 20170125
0001694586-17-000001.hdr.sgml : 20170125
20170124203142
ACCESSION NUMBER: 0001694586-17-000001
CONFORMED SUBMISSION TYPE: 1-A
PUBLIC DOCUMENT COUNT: 4
FILED AS OF DATE: 20170125
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Lu Thuan Van
CENTRAL INDEX KEY: 0001694586
FILING VALUES:
FORM TYPE: 1-A
SEC ACT: 1933 Act
SEC FILE NUMBER: 024-10668
FILM NUMBER: 17544897
MAIL ADDRESS:
STREET 1: 2906 E CALEY AVENUE
CITY: CENTENNIAL
STATE: CO
ZIP: 80121
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Lu Thuan Van
CO
2017
0001694586
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2906 E Caley Avenue
Centennial
CO
80121
7203642476
Thuan Lu
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Equity (common or preferred stock)
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PART II AND III
2
subscription123.txt
SUBSCRIPTION
SUBSCRIPTION AGREEMENT
Name of Investor
Thuan Lu, Chief Executive Officer
Bio Fil Inc.
720-364-2476
2906 E Caley Ave
Centennial, CO 80121
Re: Bio Fil Inc 500,000 Shares of Common Stock (the ?Shares?)
Gentlemen:
1. Subscription. The undersigned hereby tenders this
subscription and applies to purchase the number of Shares in Bio
Fil Inc., a Colorado company (the ?Company?) indicated below,
pursuant to the terms of this Subscription Agreement. The
purchase price of each Share is Ten Dollars ($10.00) payable in
cash in full upon subscription. The undersigned further sets
forth statements upon which you may rely to determine the
suitability of the undersigned to purchase the Shares. The
undersigned understands that the Shares are being offered
pursuant to the Offering Circular filed with the Securities and
Exchange Commission and its exhibits (the ?Offering Circular?).
In connection with this subscription, the undersigned represents
and warrants that the personal, business and financial
information provided to the Company along with this Subscription
Agreement is complete and accurate, and presents a true
statement of the undersigned?s financial condition.
2. Representations and Understandings. The undersigned hereby
makes the following representations, warranties and agreements
and confirms the following understandings:
(i) The undersigned has received a copy of the Offering
Circular, has reviewed it carefully, and has had an opportunity
to question representatives of the Company and obtain such
additional information concerning the Company as the undersigned
requested. All questions of the undersigned have been
satisfactorily answered prior to making this investment.
(ii) The undersigned has sufficient experience in financial and
business matters to be capable of utilizing such information to
evaluate the merits and risks of the undersigned?s investment,
and to make an informed decision relating thereto; or the
undersigned has utilized the services of his, her or its
financial advisor or other investment representative and
together they have sufficient experience in financial and
business matters that they are capable of utilizing such
information to evaluate the merits and risks of the
undersigned?s investment, and to make an informed decision
relating thereto.
(iii) The undersigned has evaluated the risks of this investment
in the Company, including those risks particularly described in
the Offering Circular, and has determined that the investment is
suitable for him, her or it. The undersigned has adequate
financial resources for an investment of this character, and at
this time could bear a complete loss of his investment. The
undersigned understands that any projections or other forward-
looking statements that were made in the Offering Circular are
mere estimates and may not reflect the actual results of the
Company?s operations. The undersigned understands that the Use
of Proceeds made in the Offering Circular are estimates, are not
binding, and are subject to the Company?s discretion, and may
not reflect the actual use of proceeds by the Company of the
funds they receive from this offering and from your investment.
(iv) The undersigned understands that the Shares are not being
registered under the Securities Act of 1933, as amended (the
?1933 Act?) on the ground that the issuance thereof is exempt
under Regulation A of Section 3(b) of the 1933 Act, and that
reliance on such exemption is predicated in part on the truth
and accuracy of the undersigned?s representations and
warranties, and those of the other purchasers of Shares.
(v) The undersigned understands that the Shares are not being
registered under the securities laws of certain states on the
basis that the issuance thereof is exempt as an offer and sale
not involving a registrable public offering in such state, since
the Shares are ?covered securities? under the National
Securities Market Improvement Act of 1996. The undersigned
understands that reliance on such exemptions is predicated in
part on the truth and accuracy of the undersigned?s
representations and warranties and those of other purchasers of
Shares. The undersigned covenants not to sell, transfer or
otherwise dispose of a Share unless such Share has been
registered under the applicable state securities laws, or an
exemption from registration is available.
(vi) The amount of this investment by the undersigned does not
exceed 10% of the greater of the undersigned?s net worth, not
including the value of his/her primary residence, or his/her
annual income in the prior full calendar year, as calculated in
accordance with Rule 501 of Regulation D promulgated under
Section 4(a)(2) of the Securities Act of 1933, as amended,
unless the undersigned is an ?accredited investor,? as that term
is defined in Rule 501 of Regulation D promulgated under Section
4(a)(2) of the Securities Act of 1933, as amended, or is the
beneficiary of a fiduciary account, or, if the fiduciary of the
account or other party is the donor of funds used by the
fiduciary account to make this investment, then such donor, who
meets the requirements of net worth, annual income or criteria
for being an ?accredited investor.?
(vii) The undersigned has no need for any liquidity in his
investment and is able to bear the economic risk of his
investment for an indefinite period of time. The undersigned has
been advised and is aware that: (a) there is no public market
for the Shares and a public market for the Shares may not
develop; (b) it may not be possible to liquidate the investment
readily; and (c) the Shares have not been registered under the
Securities Act of 1933 and applicable state law and an exemption
from registration for resale may not be available.
(viii) All contacts and contracts between the undersigned and
the Company regarding the offer and sale to him of Shares have
been made within the state indicated below his signature on the
signature page of this Subscription Agreement and the
undersigned is a resident of such state.
(ix) The undersigned has relied solely upon the Offering
Circular and independent investigations made by him or her or
his or her representatives and advisors with respect to the
Shares subscribed for herein, and no oral or written
representations beyond the Offering Circular have been made to
the undersigned or relied upon by the undersigned by the
Company, its representatives or assigns, or any other person or
entity.
(x) The undersigned agrees not to transfer or assign this
subscription or any interest therein.
(xi) The undersigned hereby acknowledges and agrees that, except
as may be specifically provided herein, the undersigned is not
entitled to withdraw, terminate or revoke this subscription.
(xii) If the undersigned is a partnership, corporation, limited
liability company or trust, it has been duly formed, is validly
existing, has full power and authority to make this investment,
and has not been formed for the specific purpose of investing in
the Shares. This Subscription Agreement and all other documents
executed in connection with this subscription for Shares are
valid, binding and enforceable agreements of the undersigned.
(xiii) The undersigned meets any additional suitability
standards and/or financial requirements that may be required in
the jurisdiction in which he or she resides, or is purchasing in
a fiduciary capacity for a person or account meeting such
suitability standards and/or financial requirements, and is not
a minor.
3. Issuer-Directed Offering; No Underwriter. The undersigned
understands that the offering is being conducted by the Company
directly (issuer-directed) and the Company has not engaged a
selling agent such as an underwriter or placement agent.
4. Foreign Investors. If the undersigned is not a United States
person (as defined by Section 7701(a)(30) of the Internal
Revenue Code of 1986, as amended), the undersigned hereby
represents that he or she has satisfied himself or herself as to
the full observance of the laws of its jurisdiction in
connection with any invitation to subscribe for the Shares or
any use of this Subscription Agreement, including (i) the legal
requirements within its jurisdiction for the purchase of the
Shares, (ii) any foreign exchange restrictions applicable to
such purchase, (iii) any governmental or other consents that may
need to be obtained, and (iv) the income tax and other tax
consequences, if any, that may be relevant to the purchase,
holding, redemption, sale, or transfer of the Shares. The
undersigned?s subscription and payment for and continued
beneficial ownership of the Shares will not violate any
applicable securities or other laws of the the undersigned?s
jurisdiction.
5. Valuation. The undersigned acknowledges that the price of the
Shares was set arbitrarily by the Company and no warranties are
made as to value. The undersigned further acknowledges that
future offerings of securities by the Company may be made at
lower valuations, with the result that the undersigned?s
investment will bear a lower valuation.
6. Indemnification. The undersigned hereby agrees to indemnify
and hold harmless the Company and all of its affiliates,
attorneys, accountants, employees, officers, directors, broker,
dealers, placement agents, Shareholders and other agents from
any liability, claims, costs, damages, losses or expenses
incurred or sustained by them as a result of the undersigned?s
representations and warranties herein. The undersigned hereby
further agrees that the provisions of Section 3 of this
Subscription Agreement will survive the sale, transfer or any
attempted sale or transfer of all or any portion of the Shares.
The undersigned hereby grants to the Company the right to setoff
against any amounts payable by the Company to the undersigned,
for whatever reason, of any and all damages, costs and expenses
(including, but not limited to, reasonable attorney?s fees)
which are incurred by the Company or any of its affiliates as a
result of matters for which the Company is indemnified pursuant
to Section 3 of this Subscription Agreement.
7. Taxpayer Identification Number/Backup Withholding
Certification. Unless a subscriber indicates to the contrary on
the Subscription Agreement, he, she or it will certify that his
taxpayer identification number is correct and, if not a
corporation, IRA, Keogh, or Qualified Trust (as to which there
would be no withholding), he is not subject to backup
withholding on interest or dividends. If the subscriber does not
provide a taxpayer identification number certified to be correct
or does not make the certification that the subscriber is not
subject to backup withholding, then the subscriber may be
subject to twenty-eight percent (28%) withholding on interest or
dividends paid to the holder of the Shares.
8. Governing Law. This Subscription Agreement will be governed
by and construed in accordance with the laws of the State of
Colorado. The venue for any legal action under this Agreement
will be in the proper forum in the County of Arapahoe, State of
Colorado.
9. Acknowledgement of Risks Factors. The undersigned has
carefully reviewed and thoroughly understands the risks
associated with an investment in the Shares as described in the
Offering Circular. The undersigned acknowledges that this
investment entails significant risks.
The undersigned has (have) executed this Subscription Agreement
on this _______ day of __________________, 20_____, at
___________________________________________.
SUBSCRIBER _____________________________________ .
Signature ___________________________________________________ .
(Print Name of Subscriber) _____________________________________
..
(Street Address) ____________________________________ .
__________________________________________________ .
(City, State and Zip Code)
_____________________________________
(Social Security or Tax Identification Number)
Number of Shares ____________
Dollar Amount of Shares (At $10.00 per Share)
__________________________________ .
SUBSCRIPTION ACCEPTED:
_____________________________________ DATE:
_____________________
Bio Fil Inc.
By: Thuan Lu
Chief Executive Officer
EX1A-2B BYLAWS
3
bylaws.txt
BYLAWS
BYLAWS
OF
Bio Fil Inc..
(a Colorado corporation)
ARTICLE I
OFFICES
Section 1.1 Registered Office. The registered office of Bio
Fil Inc.. (the ?Corporation?) shall be in the City of
Centennial, County of Arapahoe, State of Colorado.
Section 1.2 Other Offices.
The Corporation may also have offices at such other places, both
within and without the State of Colorado, as the Board of
Directors may from time to time determine or as the business of
the Corporation may require.
ARTICLE II
MEETINGS OF THE STOCKHOLDERS
Section 2.1 Place of Meetings. Meetings of the stockholders
of the Corporation shall be held at such time and place, either
within or without the State of Colorado, as shall be designated
from time to time by the Board of Directors. In the absence of
any such designation, a meeting of the stockholders shall be
held at the principal executive offices of the Corporation.
Section 2.2 Annual Meetings. An annual meeting of the
stockholders of the Corporation, for the election of directors
and for the transaction of such other business as may properly
come before of the meeting, shall be held each year on such date
and at such time as shall be designated from time to time by the
Board of Directors. The first annual meeting of the stockholders
shall be held within thirteen (12) months of the date of the
incorporation of the Corporation.
Section 2.3 Special Meetings. Except as otherwise required
by law, the Certificate of Incorporation or these Bylaws,
special meetings of the stockholders of the Corporation, for any
purpose or purposes, may be called by (i) the Chairman of the
Board, if there be one, (ii) the President, or (iii) any officer
of the Corporation at the request of a majority of the Board of
Directors. A special meeting of the stockholders so called shall
be held on such date and at such time as is designated by the
Board of Directors. Business transacted at any special meeting
of the stockholders shall be limited to the purposes stated in
the notice of the special meeting.
Section 2.4 Notice of Meetings. Except as otherwise
required by law, the Certificate of Incorporation or these
Bylaws, written notice of each meeting of the stockholders
stating the place, date and time of the meeting and, in the case
of a special meeting, the purpose or purposes for which the
meeting is called, shall be given not less than ten (10) nor
more than sixty (60) days before the date of such meeting to
each stockholder entitled to vote at such meeting. If mailed,
such notice shall be deemed to be given when deposited in the
United States mail, postage prepaid, directed to each
stockholder at such stockholder?s address as it appears on the
stock records of the Corporation or its transfer agent, unless
such stockholder shall have filed with the Secretary of the
Corporation a written request that notices to such stockholder
be mailed to some other address, in which case it shall be
directed to such stockholder at such other address.
Section 2.5 Quorum. At each meeting of the stockholders,
the presence, in person or by proxy, of the holders of not less
than a majority of the outstanding shares entitled to vote
thereat shall constitute a quorum at such meeting for the
transaction of business, except as otherwise required by law,
the Certificate of Incorporation or these Bylaws. In the absence
of a quorum at any meeting of the stockholders, either the
chairman of the meeting or the holders of a majority of the
outstanding shares present, in person or by proxy, and entitled
to vote thereat may adjourn such meeting from time to time, but
no other business shall be transacted at such meeting. The
stockholders present at a duly called or convened meeting, at
which a quorum is present, may continue to transact business
until adjournment, notwithstanding the withdrawal of enough
stockholders to leave less than a quorum.
Section 2.6 Adjournment. Any meeting of the stockholders,
whether or not a quorum is present, may be adjourned from time
to time, either by the chairman of the meeting or by the vote of
holders of a majority of the outstanding shares present, in
person or by proxy, and entitled to vote thereat, to reconvene
at the same or some other place. Notice of any properly
adjourned meeting need not be given if the time and place
thereof are announced at the meeting at which the adjournment is
taken and the adjournment is for no more than thirty (30) days
and a new record date is not fixed for the adjourned meeting. If
the adjournment is for more than thirty (30) days, or if after
the adjournment a new record date is fixed for the adjourned
meeting, then notice of the adjourned meeting shall be given to
each stockholder of record entitled to vote at the adjourned
meeting. At an adjourned meeting at which a quorum shall be
present, any business may be transacted which might have been
transacted at the meeting as originally called if a quorum has
been present thereat.
Section 2.7 Vote Required. Except as otherwise required by
law, the Certificate of Incorporation or these Bylaws, (i) at
any meeting of the stockholders for the election of directors at
which a quorum is present, the candidates receiving the greatest
number of votes shall be elected as directors; and (ii) all
other matters submitted to the stockholders at any meeting of
the stockholders at which a quorum is present shall be decided
by the vote of the holders of a majority of the outstanding
shares entitled to vote and present, in person or by proxy, at
the meeting. Where a separate vote by class or series is
required, except as otherwise required by law, the Certificate
of Incorporation or these Bylaws, a majority of the outstanding
shares of such class or series present, in person or by proxy,
at the meeting shall constitute a quorum entitled to take action
with respect to that vote on that matter and, except as
otherwise required by law, the Certificate of Incorporation or
these Bylaws, the affirmative vote of the majority (or
plurality, in the case of the election of directors) of the
votes cast by the holders of shares of such class or classes or
series shall be the act of such class or series. Every reference
in these Bylaws to a majority or other proportion of shares of
stock shall refer to such majority or other proportion of the
votes to which such shares are entitled as provided in the
Certificate of Incorporation or these Bylaws.
Section 2.8 Voting Rights. Except as otherwise
required by law, the Certificate of Incorporation or these
Bylaws, each stockholder in whose name shares stand on the stock
records of the Corporation as of the record date with respect to
a meeting of the stockholders shall at such meeting be entitled
to one vote for each share held by such stockholder as of such
record date.
Section 2.9 Proxies. Each stockholder entitled to vote at a
meeting of the stockholders, or to express consent to corporate
action in writing without a meeting, may authorize another
person or persons to act for him by proxy, if the proxy is set
forth in writing or by a transmission permitted by law, but no
such proxy shall be voted or acted upon after three (3) years
from its date, unless such proxy provides for a longer period.
Each proxy shall be filed with the Secretary of the Corporation
prior to or at the time of the meeting.
Section 2.10 List of Stockholders. The Secretary or other
officer of the Corporation who has charge of the stock ledger of
the Corporation shall prepare and make, at least ten (10) days
before each meeting of the stockholders, a complete list of the
stockholders entitled to vote at such meeting, arranged in
alphabetical order, showing the address of each stockholder and
the number of shares registered in the name of each stockholder.
Such list shall be open to the examination of any stockholder
for any purpose germane to the meeting, during ordinary business
hours, for a period of at least ten (10) days prior to the
meeting, either at a place within the city where the meeting is
to be held, which place shall be specified in the notice of the
meeting, or, if not so specified, at the place where the meeting
is to be held. The list shall also be produced and kept open at
the time and place of the meeting during the whole time thereof,
and may be inspected by any stockholder who is present.
Section 2.11 Organization of Meetings.
(a) At each meeting of the stockholders, unless another officer
has been appointed by the Board of Directors, the Chairman of
the Board, or, if a Chairman of the Board has not been appointed
or is absent, the President, or, in the absence of the
President, any Vice President, or in the absence of any Vice
President, a chairman chosen by the holders of a majority of the
outstanding shares present, in person or by proxy, at the
meeting and entitled to vote thereat, shall act as chairman of
the meeting. The Secretary, or, in his absence, an Assistant
Secretary or, if an Assistant Secretary has not been appointed
or is absent, any person appointed by the chairman of the
meeting, shall act as secretary of the meeting.
(b) The Board of Directors of the Corporation may adopt by
resolution such rules and regulations for the conduct of
meetings of the stockholders as it shall deem appropriate.
Except to the extent inconsistent with such rules and
regulations as adopted by the Board of Directors, the chairman
of the meeting shall have the right and authority to prescribe
such rules, regulations and procedures and to do all such acts
as, in the judgment of such chairman, are appropriate for the
proper conduct of the meeting. Such rules, regulations and
procedures, whether adopted by the Board of Directors or
prescribed by the chairman of the meeting, may include, without
limitation, (i) the establishment of an agenda or order of
business for the meeting, (ii) rules and procedures for
maintaining order at the meeting and the safety of those
present, (iii) limitations on attendance at or participation in
such meeting to stockholders of record of the Corporation and
their duly authorized and constituted proxies and such other
persons as the chairman of the meeting shall permit in the
chairman?s discretion, (iv) restrictions on entry to the meeting
after the time fixed for the commencement thereof, (v)
limitations on the time allotted to questions or comments by
participants, and (vi) the determination of the opening and
closing of the polls for balloting on matters which are to be
voted on by ballot. Unless and to the extent determined by the
Board of Directors or the chairman of the meeting, meetings of
the stockholders shall not be required to be held in accordance
with, or to follow, any manual or rules of parliamentary
procedure.
Section 2.12 Action By Written Consent Without a Meeting.
Unless otherwise provided in the Certificate of
Incorporation or these Bylaws, any action required or permitted
to be taken at any meeting of the stockholders of the
Corporation may be taken without a meeting, without prior notice
and without a vote, if a consent or consents in writing, setting
forth the action so taken and bearing the date of signature by
each stockholder who signs the written consent, 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 stockholders entitled
to vote on such action were present and voted, and shall be
delivered to the Corporation within sixty (60) days of the date
of the earliest dated written consent. Prompt notice of the
taking of the corporate action without a meeting by less than
unanimous written consent shall be given to those stockholders
who have not consented thereto in writing.
ARTICLE III
DIRECTORS
Section 3.1 Power and Authority. The business and affairs
of the Corporation shall be managed by or under the direction of
the Board of Directors, which shall have and may exercise all
the powers of the Corporation and do all such lawful acts and
things, except as otherwise provided by law, the Certificate of
Incorporation or these Bylaws.
Section 3.2 Number and Qualifications of Directors.
Except as otherwise provided in the Certificate of
Incorporation, the authorized number of directors of the
Corporation which shall constitute the whole Board of Directors
shall be fixed or changed from time to time exclusively by
resolution adopted by the Board of Directors. Except as
otherwise provided in the Certificate of Incorporation or fixed
by resolution adopted by the Board of Directors, the authorized
number of directors of the Corporation shall be three (3). No
decrease in the authorized number of directors shall have the
effect of shortening the term of any incumbent director.
Directors need not be stockholders, unless the Certificate of
Incorporation otherwise provides.
Section 3.3 Election and Term of Directors. The directors,
other than the initial directors either named in the Certificate
of Incorporation or elected by the incorporators, shall be
elected at each annual meeting of the stockholders, except as
provided in Section 3.4 hereof, and each director so elected
shall hold office until the next annual meeting of the
stockholders and until such director?s successor is duly elected
and qualified, or until such director?s earlier death,
resignation or removal. If, for any reason, the directors shall
not have been elected at an annual meeting of the stockholders,
they may be elected as soon thereafter as convenient at a
special meeting of the stockholders called for that purpose.
Section 3.4 Vacancies and Newly Created Directorships.
Vacancies occurring on the Board of Directors, whether
resulting from death, resignation, removal, disqualification,
failure of the stockholders to elect the whole authorized number
of directors, newly created directorships resulting from any
increase in the authorized number of directors or any other
reason, may be filled by a majority of the directors then in
office, even though less than a quorum, or by a sole remaining
director, and any director so chosen shall hold office until the
next election of directors and until such director?s successor
is duly elected and qualified, or until such director?s earlier
death, resignation or removal. If at any time there are no
directors in office, then an election of directors may be held
in the manner provided by Colorado law.
Section 3.5 Resignation. Any director may resign at any
time by giving written notice to the Board of Directors, the
Chairman of the Board, if there be one, the President or the
Secretary of the Corporation at the principal executive offices
of the Corporation. Such resignation shall be effective at the
time specified therein or, if no such specification is made,
immediately upon its receipt by the Corporation. Unless
otherwise specified in the notice, acceptance of a resignation
shall not be necessary to make it effective.
Section 3.6 Removal. Except as otherwise provided by
Colorado law or the Certificate of Incorporation, any director
or the entire Board of Directors may be removed from office
cause and only by the affirmative vote of the holders of a
majority of the outstanding shares of the Corporation entitled
to vote at an election of directors.
Section 3.7 Place of Meetings. The Board of Directors may
hold meetings, both regular and special, either within or
without the State of Colorado.
Section 3.8 Regular Meetings. Unless the Board of
Directors shall otherwise determine, a regular meeting of the
Board of Directors shall be held immediately following the
adjournment of each annual meeting of the stockholders at which
directors are elected, and at the same place, and notice of such
meeting need not be given (unless the time or place is changed).
Additional regular meetings of the Board of Directors may be
held at such other times and places as may from time to time be
determined by resolution by the Board of Directors, and notice
of any such additional regular meetings need not be given.
Section 3.9 Special Meetings. Special meetings of the Board
of Directors may be called at any time by the Board of
Directors, by the Chairman of the Board, if there be one, by the
President or by any two (2) or more directors and shall be held
at such time and place as shall be stated in the notice of the
meeting. Notice of the time and place of any special meeting
shall be given orally or in writing to each director, in person
or by facsimile, telephone, electronic mail, hand delivery,
telecopy or other similar method involving immediate receipt, at
least twenty-four (24) hours before the meeting, or by mail, if
deposited in the United States mail properly addressed, with
postage prepaid, at least seventy-two (72) hours prior to the
meeting. 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 of such meeting.
Section 3.10 Quorum and Voting. Except as otherwise provided
by Colorado law or the Certificate of Incorporation, at all
meetings of the Board of Directors, the presence of a majority
of the directors then in office shall constitute a quorum for
the transaction of business. The vote of a majority of the
directors present at any meeting of the Board of Directors at
which a quorum is present shall be the act of the Board of
Directors, except as may be otherwise specifically provided by
Colorado law, the Certificate of Incorporation or these Bylaws.
If a quorum shall not be present at any meeting of the Board of
Directors, the directors present thereat may adjourn the meeting
from time to time, without notice other than announcement at the
meeting of the time and place of the adjourned meeting, until a
quorum shall be present.
Section 3.11 Meetings by Telephone. Unless otherwise
provided in the Certificate of Incorporation or these Bylaws,
any member of the Board of Directors, or of any committee
thereof, may participate in a meeting of the Board of Directors,
or of such committee, by means of a conference telephone or
similar communications equipment by means of which all persons
participating in the meeting can hear each other, and
participation in a meeting by such means shall constitute
presence in person at such meeting.
Section 3.12 Organization. At each meeting of the Board
of Directors, the Chairman of the Board, if there be one, or, if
a Chairman of the Board has not been elected or is absent, the
President, or, if the President is absent, the most senior Vice
President, or, in the absence of any such officer, a chairman of
the meeting chosen by a majority of the directors present at the
meeting, shall preside over the meeting. The Secretary, or in
his absence, an Assistant Secretary or another person appointed
by the chairman of the meeting, shall act as secretary of the
meeting. At each meeting of the Board of Directors, the chairman
of the meeting shall establish the order of business of and the
procedures at the meeting, subject to the right of the Board of
Directors to establish or modify the same.
Section 3.13 Action By Written Consent Without a Meeting.
Unless otherwise provided in the Certificate of
Incorporation or these Bylaws, any action required or permitted
to be taken at any meeting of the Board of Directors, or of any
committee thereof, may be taken without a meeting, if all
members of the Board of Directors or of such committee, as the
case may be, consent thereto in a writing or writings, and such
writing or writings are filed with the minutes of proceedings of
the Board of Directors or of such committee.
Section 3.14 Committees. The Board of Directors may, by
resolution adopted by the whole Board of Directors, appoint one
or more committees, each committee to consist of one or more of
the directors of the Corporation as fixed or changed from time
to time by the Board of Directors. 7he membership of a committee
member shall terminate on the date of such member?s death,
resignation or removal from the committee or from the Board of
Directors. The Board of Directors may at any time for any reason
remove any or all committee members and the Board of Directors
may fill any vacancy on a committee created by death,
resignation, removal or increase in the number of members of the
committee. The Board of Directors may designate one or more
directors as alternate members of any committee, who may replace
any absent or disqualified member at any meeting of any such
committee. In the absence or disqualification of a member of a
committee, and in the absence of a designation by the Board of
Directors of an alternate member to replace the absent or
disqualified member, the member or members thereof present at
any meeting and not disqualified from voting, whether or not
such member or members constitute a quorum, may unanimously
appoint another member of the Board of Directors to act at the
meeting in the place of any such absent or disqualified member.
Any such committee shall, to the extent provided by resolution
of the Board of Directors, unless otherwise restricted by law,
the Certificate of Incorporation or these Bylaws, have and may
exercise all the powers and authority of the Board of Directors
in the management of the business and affairs of the
Corporation, and may authorize the seal of the Corporation, if
there be one, to be affixed to all papers which may require it.
Each committee shall serve at the pleasure of the Board of
Directors, shall act only in intervals between meetings of the
Board of Directors, and shall be subject to the control and
direction of the Board of Directors. Each committee shall act by
a majority of its members at a meeting or by a writing or
writings signed by all of its members. Each committee shall keep
written minutes of its meetings and proceedings and report the
same to the Board of Directors when required.
Section 3.15 Compensation. Unless otherwise provided in
the Certificate of Incorporation or these Bylaws, the Board of
Directors shall have the authority to fix the amount and type of
compensation that the Corporation shall pay to directors for
their services as directors, if any. The directors may be paid
their expenses, if any, of attendance at each meeting of the
Board of Directors or any committee thereof and shall receive
such compensation for attendance at each meeting of the Board of
Directors or any committee thereof and other services as shall
be determined by the Board of Directors. No such payment shall
preclude any director from serving the Corporation in any other
capacity and receiving compensation therefor.
ARTICLE IV
NOTICES
Section 4.1 Form of Notice. Whenever any notice is
required by law, the Certificate of Incorporation or these
Bylaws, to be given to any director, committee member or
stockholder, unless contrary provision is made as to how such
notice shall be given, such notice may be given (i) in person,
in writing, (ii) by mail, postage prepaid, addressed to such
director, committee member or stockholder, at such person?s
address as it appears on the books or, in the case of a
stockholder, the stock transfer records of the Corporation or
its transfer agent, and such notice shall be deemed to be given
at the time when the same shall be deposited in the United
States mail, (iii) by overnight courier service, and such notice
shall be deemed to be given the day following the day it is
delivered to such service with all charges prepaid, (iv) by
facsimile, telecopy, telegram or other similar means, and such
notice shall be deemed to be given at the time it is transmitted
with all charges prepaid, or (v) by any other method permitted
by law, and such notice shall be deemed to be given when it is
received by the director, committee member or stockholder.
Section 4.2 Waiver of Notice. Whenever any notice is
required to be given to any stockholder, director or committee
member under the provisions of law, the Certificate of
Incorporation or these Bylaws, a waiver thereof in writing,
signed by the person or persons entitled to receive such notice,
whether before or after the time stated therein, shall be deemed
equivalent to the giving of notice to such person or persons.
Attendance of a director, committee member or stockholder (in
person or by proxy) at a meeting shall constitute a waiver of
notice of such meeting, except when the person attends the
meeting for the express purpose of objecting, at the beginning
of the meeting, to the transaction of any business on the ground
that the meeting was not lawfully called or convened. Neither
the business to be transacted at, nor the purpose of, any
meeting need be specified in any written waiver of notice,
unless otherwise required by law, the Certificate of
Incorporation or these Bylaws.
ARTICLE V
OFFICERS
Section 5.1 General. The officers of the Corporation shall
be elected or appointed by the Board of Directors and shall
include a President, a Secretary and a Treasurer. The Board of
Directors, in its discretion, may also elect or appoint a
Chairman of the Board (who must be a director), one or more Vice
Presidents, Assistant Secretaries and Assistant Treasurers, and
such other officers as it shall deem necessary, convenient or
desirable. Any number of offices may be held by the same person
at the same time, unless prohibited by law, the Certificate of
Incorporation or these Bylaws. No officer of the Corporation
needs to be a stockholder of the Corporation, and no officer of
the Corporation, except for the Chairman of the Board, needs to
be a director of the Corporation.
Section 5.2 Term. Each officer of the Corporation shall
hold office at the pleasure of the Board of Directors, until his
successor is duly elected or appointed and qualified, or until
his earlier death, resignation or removal.
Section 5.3 Removal and Vacancies. Any officer elected or
appointed by the Board of Directors may be removed at any time,
with or without cause, by the Board of Directors. Any vacancy
occurring in any office of the Corporation, whether caused by
death, resignation, removal, expiration of term or any other
reason, may be filled by the Board of Directors.
Section 5.4 Resignations. Any officer may resign at any time
by giving written notice to the Board of Directors, the Chairman
of the Board, if there be one, the President or the Secretary of
the Corporation at the principal executive offices of the
Corporation. Any such resignation shall be effective when
received by the person or persons to whom the notice is properly
given, unless a later time is specified therein, in which event
the resignation shall become effective at such later time.
Unless otherwise specified in such notice, the acceptance of any
such resignation shall not be necessary to make it effective.
Any resignation shall be without prejudice to the contractual
rights, if any, of the Corporation under any contract with the
resigning officer.
Section 5.5 Compensation. The salaries and other
compensation of the officers of the Corporation, if any, shall
be fixed by or in the manner designated by the Board of
Directors.
Section 5.6 Chairman of the Board. The Chairman of the
Board, if there be one, shall preside at all meetings of the
stockholders and of the Board of Directors. Except where by law
the signature of the President is required, the Chairman of the
Board of Directors shall possess the same power as the President
to sign all contracts, certificates and other instruments of the
Corporation which may be authorized by the Board of Directors.
During the absence or disability of the President, the Chairman
of the Board shall have all the powers and shall perform all the
duties of the President. The Chairman of the Board shall also
perform such other duties and have such other powers commonly
incident to such office and as may from time to time be assigned
to the Chairman of the Board of Directors by these Bylaws or by
the Board of Directors.
Section 5.7 President. The President shall be the chief
executive officer of the Corporation (unless the Board of
Directors provides for another person to hold such office
separately) and, subject to the control of the Board of
Directors, shall have general and active charge, management,
control and supervision of the properties, business, affairs,
operations, officers, employees and agents of the Corporation,
and shall see that all orders and resolutions of the Board of
Directors are carried into effect. The President shall have
general authority to execute and deliver all bonds, deeds,
mortgages, leases, contracts and other documents and instruments
in the name and on behalf of the Corporation, except where
required or permitted by law to be otherwise executed and except
where the execution thereof shall be expressly delegated by the
Board of Directors to some other officer or agent of the
Corporation. Unless the Board of Directors otherwise determine,
in the absence or disability of the Chairman of the Board of
Directors, or if there be none, the President shall preside at
all meetings of the stockholders and, if he is a director, of
the Board of Directors. The President shall also perform such
other duties and have such other powers commonly incident to
such office and as may from time to time be assigned to the
President by these Bylaws or the Board of Directors. Any of the
powers or duties of the President may be assigned by the Board
of Directors to a Chief Executive Officer elected or appointed
by the Board of Directors.
Section 5.8 Vice Presidents. At the request of the
President or in the absence of the president or in the event of
the president?s inability or refusal to act (and if there be no
Chairman of the Board), the Vice President, if any, or in the
event there is more than one Vice President, the Vice Presidents
(in the order designated by the Board of Directors, or in the
absence of any designation, then in the order of their election
or 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. Each Vice President
shall perform such other duties and have such other powers
commonly incident to such office and as may from time to time be
assigned to such Vice President by these Bylaws, the Board of
Directors, the Chairman of the Board of Directors (if there be
one), or the President.
Section 5.9 Secretary. The Secretary shall attend all
meetings of the Board of Directors and all meetings of the
stockholders and shall record and keep the minutes of all the
actions and proceedings of such meetings in books to be kept for
that purpose and shall perform like duties for committees of the
Board of Directors when required. Except as otherwise provided
in these Bylaws, the Secretary shall give, or cause to be given,
notice of all meetings of the stockholders and of all special
meetings of the Board of Directors and of all committees that
require notice The Secretary shall have custody of the seal of
the Corporation, if any, and the Secretary, or an Assistant
Secretary, if any, shall have authority to affix the same to any
instrument requiring it and when so affixed, it may be attested
by the signature of the Secretary or by the signature of any
such Assistant Secretary. The Board of Directors may give
general authority to any other officer to affix the seal of the
Corporation, if any, and to attest to the affi[ing by such
officer?s signature. 7he Secretary shall see that all books,
reports, statements, certificates and other documents and
records required by law to be kept or filed are properly kept or
filed, as the case may be. The Secretary shall perform such
other duties and have such other powers commonly incident to
such office and as may from time to time be assigned to the
Secretary by these Bylaws, the Board of Directors, the Chairman
of the Board (if there be one) or the President, under whose
supervision the Secretary shall be.
Section 5.10 Assistant Secretaries. The Assistant
Secretary, if there be one, or if there be more than one, the
Assistant Secretaries (in the order determined by the Board of
Directors, or if there be no such determination, then in the
order of their election) shall, at the request of the Secretary
or in the absence of the Secretary or in the eYent of the
Secretary?s inability or refusal to act, perform the duties of
the Secretary and, when so acting, shall have all the powers of
and be subject to all the restrictions upon the Secretary. Each
Assistant Secretary, if there be any, shall perform such other
duties and shall have such other powers as may from time to time
be assigned to such Assistant Secretary by the Board of
Directors, the President any Vice President or the Secretary.
Section 5.11 Treasurer. The Treasurer shall have the
custody of the corporate funds and securities and shall keep or
cause to be kept full and accurate accounts of receipts and
disbursements of the Corporation and shall deposit all moneys
and other valuable effects in the name and to the credit of the
Corporation in such depositories as may be designated by the
Board of Directors. The Treasurer shall disburse the funds of
the Corporation as may be ordered by the Board of Directors,
taking proper vouchers for such disbursements, and shall render
to the President and the Board of Directors, at its regular
meetings, or when the Board of Directors otherwise so requires,
an account of all his transactions as Treasurer and of the
financial condition and results of operations of the
Corporation. If required by the Board of Directors, the
Treasurer shall give the Corporation a bond in such form, in
such sum and with such surety or sureties as shall be
satisfactory to the Board of Directors for the faithful
performance of the duties of his office and for the restoration
to the Corporation, in case of his death, resignation,
retirement or removal from office, of all books, papers,
vouchers, money and other property of whatever kind in his
possession or under his control belonging to the Corporation.
The Treasurer shall also perform such other duties and shall
have such other powers commonly incident to such office and as
may from time to time be assigned to the Treasurer by the Board
of Directors, the Chairman of the Board (if there be one) or the
President. Any of the powers or duties of the Treasurer may be
assigned by the Board of Directors to a Chief Financial Officer
elected or appointed by the Board of Directors.
Section 5.12 Assistant Treasurer. The Assistant
Treasurer, if any, or if there shall be more than one, the
Assistant Treasurers in the order determined by the Board of
Directors, or if there be no such determination, then in order
of their election, shall, at the request of the Treasurer, in
the absence of the Treasurer or in the event of the treasurer?s
inability or refusal to act, perform the duties of the Treasurer
and, when so acting, shall have the powers and be subject to all
the restrictions upon the Treasurer. The Assistant Treasurer, if
any, shall also perform such other duties and shall have such
other powers as may be assigned to such Assistant Treasurer from
time to time by the Board of Directors, the President, any Vice
President or the Treasurer. If required by the Board of
Directors, an Assistant Treasurer shall give the Corporation a
bond in such sum and with such surety or sureties as shall be
satisfactory to the Board of Directors for the faithful
performance of the duties of the office of Assistant Treasurer
and for the restoration to the Corporation, in case of the
assistant treasurer?s death, resignation, retirement or removal
from office, of all books, papers, vouchers, money and other
property of whatever kind in the assistant treasurer?s
possession or under the assistant treasurer?s control belonging
to the Corporation.
Section 5.13 Additional Officers. The Board of Directors
may elect or appoint such other officers as it shall deem
necessary, convenient or desirable. Such other officers shall
hold their offices at the pleasure of the Board of Directors for
such terms and shall have such powers and perform such duties as
shall be assigned to them from time to time by the Board of
Directors. The Board of Directors may delegate to any officer of
the Corporation the power to elect or appoint any subordinate
officers and to prescribe their respective duties and powers.
Section 5.14 Delegation of Authority. Except where
otherwise provided by law, the Board of Directors may from time
to time delegate the powers or duties of any officer of the
Corporation to any other person, and may authorize any officer
to delegate specific powers and duties of such officer to any
other person.
ARTICLE VI
EXECUTION OF CORPORATE INSTRUMENTS AND VOTING OF SECURITIES
OWNED BY THE CORPORATION
Section 6.1 Execution of Corporate Instruments. The Board
of Directors may, except as otherwise provided by law, the
Certificate of Incorporation or these Bylaws, authorize any
officer or officers, or other person or persons, to enter into
any contract or to execute and deliver any instrument in the
name and on behalf of the Corporation, which authorization may
be general or confined to specific instances. Unless so
authorized or ratified by the Board of Directors or otherwise
within the authority of an officer, no officer, agent or
employee shall have any power or authority to bind the
Corporation by any contract or engagement or to pledge its
credit or to render it liable for any purpose or for any amount.
Section 6.2 Voting of Securities Owned by the Corporation.
Powers of attorney, proxies, waivers of notice of meetings,
consents and other instruments relating to securities owned by
the Corporation may be executed in the name of and on behalf of
the Corporation by the Chairman of the Board, if there by one,
the President, any Vice President or any other officer
authorized to do so by the Board of Directors, and any such
officer may, in the name of and on behalf of the Corporation,
take all such action as any such officer may deem advisable to
vote in person or by proxy at any meeting of securityholders of
any corporation in which the Corporation may own securities and
at any such meeting shall possess and may exercise any and all
rights and power incident to the ownership of such securities
and which, as the owner thereof, the Corporation might have
exercised and possessed if present. The Board of Directors may,
by resolution, from time to time confer like powers upon any
other person or persons.
ARTICLE VII
STOCK AND STOCKHOLDERS
Section 7.1 Stock Certificates. Each stockholder shall
be entitled to a certificate, which shall be in such form as is
consistent with applicable law and the Certificate of
Incorporation and as is prescribed by the Board of Directors,
signed by, or in the name of the Corporation by, the Chairman of
the Board (if there be one), the President or a Vice President,
and by the Treasurer or an Assistant Treasurer, or the Secretary
or an Assistant Secretary, certifying the number and the class
or series of shares of stock of the Corporation owned by such
stockholder. Any or all of the signatures on a certificate may
be facsimile. In case any officer, transfer agent or registrar
who has signed or whose facsimile signature has been placed upon
a certificate shall have ceased to be such officer, transfer
agent or registrar before such certificate is issued, it may be
issued by the Corporation with the same effect as if he were
such officer, transfer agent or registrar at the date of issue.
If the Corporation is authorized to issue more than one class of
stock or more than one series of any class, then the powers,
designations, preferences and relative, participating, optional
or other special rights of each class of stock or series thereof
and the qualifications, limitations or restrictions of such
preferences and/or rights shall be set forth in full or
summarized on the face or back of the certificate which the
Corporation shall issue to represent such class or series of
stock; provided, however, that, except as otherwise provided in
Section 202 of the General Corporation Law of the State of
Colorado, in lieu of the foregoing requirements, there may be
set forth on the face or back of the certificate which the
Corporation shall issue to represent such class or series of
stock a statement that the Corporation will furnish without
charge to each stockholder who so requests the powers,
designations, preferences and relative, participating, optional
or other special rights of each class of stock or series thereof
and the qualifications, limitations or restrictions of such
preferences and/or rights.
Within a reasonable time after the issuance or transfer of
uncertificated stock, the Corporation shall send to the
registered owner thereof a written notice containing the
information required to be set forth or stated on certificates
pursuant to the General Corporation Law of the State of Colorado
or a statement that the Corporation will furnish without charge
to each stockholder who so requests the powers, designations,
preferences and relative participating, optional or other
special rights of each class of stock or series thereof and the
qualifications, limitations or restrictions of such preferences
and/or rights.
Section 7.2 Lost, Stolen or Destroyed Certificates. The
Corporation may issue a new certificate or certificates or
uncertificated shares of stock of the Corporation in place of
any certificate or certificates theretofore issued by the
Corporation alleged by the owner thereof to have been lost,
stolen or destroyed, upon the making of an affidavit of that
fact by the person claiming the certificate to be lost, stolen
or destroyed. When issuing such new certificate or certificates
or uncertificated shares, the Corporation may, in its discretion
and as a condition precedent to the issuance thereof, require
the owner of such lost, stolen or destroyed certificate or
certificates, or such owner?s legal representative, to advertise
the same in such manner as it shall require and/or to give the
Corporation a bond in such form and in such sum as it may direct
to indemnify the Corporation against any claim that may be made
against the Corporation with respect to the certificate alleged
to have been lost, stolen or destroyed.
Section 7.3 Transfers of Shares. Shares of stock of the
Corporation shall only be transferable upon the books of the
Corporation by the holders thereof, in person or by duly
authorized attorney or legal representative and upon the
surrender of a properly endorsed certificate or certificates for
a like number of shares. Upon surrender to the Corporation or
the transfer agent of the Corporation of a certificate for
shares of stock of the Corporation duly endorsed or accompanied
by proper evidence of succession, assignment or authority to
transfer, it shall be the duty of the Corporation or the
transfer agent of the Corporation to issue a new certificate to
the person entitled thereto, cancel the old certificate and
record the transaction upon its books; provided, however, that
if the certificate contains any legend or other statement
restricting or otherwise providing any condition on transfers of
the shares represented thereby, then the Corporation or the
transfer agent of the Corporation shall effect such transfer
only upon the terms of such legend or other statement and only
if the Corporation or the transfer agent of the Corporation is
satisfied, in its sole discretion, that all conditions to
transfer have been satisfied. Upon receipt of proper transfer
instructions from the registered owner of uncertificated shares,
such uncertificated shares shall be canceled and issuance of new
equivalent uncertificated shares or certificated shares shall be
made to the person entitled thereto and the transaction shall be
recorded upon the books of the Corporation. The Corporation
shall have power to enter into and perform any agreement with
any number of stockholders of any one or more classes of stock
of the Corporation to restrict the transfer of shares of stock
of the Corporation or any one or more classes owned by such
stockholders in any manner not prohibited by law.
Section 7.4 Record Date. In order that the Corporation may
determine the stockholders entitled to notice of or to vote at
any meeting of the stockholders or any adjournment thereof, or
entitled to consent to corporate action in writing without a
meeting, or entitled to receive payment of any dividend or other
distribution or allotment of any rights, or entitled to exercise
any rights, in respect of any change, conversion or exchange of
stock, or for the purpose of any other lawful action, the Board
of Directors may by resolution fix, in advance, a record date
that does not precede the date upon which the resolution fixing
such record date was adopted, and with respect to stockholder
meetings, is not more than sixty (60) nor less than ten (10)
days prior to the date of such meeting, and with respect to
other actions is not more than sixty (60) days prior to any such
other action. If no record date is fixed by the Board of
Directors, the record date (i) for determining stockholders
entitled to notice of or to vote at a meeting of stockholders
shall be at the close of business on the day next preceding the
day on which notice is given, or if notice is waived, at the
close of business on the day next preceding the day on which the
meeting is held, and (ii) for all other purposes shall be the
close of business on the day on which the Board of Directors
adopts the resolution relating thereto, except as otherwise
required by Colorado law, the Certificate of Incorporation or
these Bylaws. A determination of stockholders of record entitled
to notice of or to vote at a meeting of stockholders shall apply
to any adjournment of the meeting; provided, however, that the
Board of Directors may fix a new record date for the adjourned
meeting.
Section 7.5 Registered Stockholders. The Corporation
shall be entitled to recognize the exclusive right of a person
registered on its books as the owner of shares to receive
dividends, and to vote as such owner, and to hold liable for
calls and assessments the person registered on its books as the
owner of shares, and shall not be bound to recognize any
equitable or other claim to or interest in such share or shares
on the part of any other person, whether or not it shall have
express or other notice thereof, except as otherwise provided by
law.
Section 7.6 Dividends. Dividends upon the capital stock
of the Corporation may be declared by the Board of Directors at
any regular or special meeting, subject to the provisions of law
and the Certificate of Incorporation. Dividends may be paid in
cash, in property, or in shares of the capital stock of the
Corporation, subject to the provisions of law and the
Certificate of Incorporation. Before payment of any dividend,
there may be set aside out of any funds of the Corporation
available for dividends such sum or sums as the Board of
Directors from time to time, in its absolute discretion, deems
proper as a reserve or reserves for working capital, to meet
contingencies, for equalizing dividends, for repairing or
maintaining any property of the Corporation, or for such other
purposes as the Board of Directors shall deem in the best
interests of the Corporation, and the Board of Directors may
modify or abolish any such reserve in the manner in which it was
created.
Section 7.7 Regulations. The Board of Directors may make
such rules and regulations as it may deem expedient, not
inconsistent with these Bylaws, concerning the issue, transfer
and registration or replacement of certificates for shares of
stock of the Corporation. The Board of Directors may appoint one
or more transfer agents or one or more registrars, or both, and
may require all certificates for shares to bear the signature of
either or both.
ARTICLE VIII
OTHER SECURITIES OF THE CORPORATION
Section 8.1 Execution of Other Securities. All
bonds, debentures and other corporate securities of the
Corporation, other than stock certificates (covered in Section
7.1), may be signed by the Chairman of the Board (if there be
one), the President or any Vice President, or such other person
as may be authorized by the Board of Directors, and the
corporate seal, if any, impressed thereon or a facsimile of such
seal imprinted thereon and attested by the signature of the
Secretary or an Assistant Secretary, or the Treasurer or an
Assistant Treasurer; provided, however, that where any such
bond, debenture or other corporate security shall be
authenticated by the manual signature of a trustee under an
indenture pursuant to which such bond, debenture or other
corporate security shall be issued, the signatures of the
persons signing and attesting the corporate seal, if any, on
such bond, debenture or other corporate security may be the
imprinted facsimile of the signatures of such persons. Interest
coupons appertaining to any such bond, debenture or other
corporate security, authenticated by a trustee as aforesaid,
shall be signed by the Treasurer or an Assistant Treasurer of
the Corporation or such other person as may be authorized by the
Board of Directors, to bear imprinted thereon the facsimile
signature of such person. In case any officer who shall have
signed or attested any bond, debenture or other corporate
security, or whose facsimile signature shall appear thereon or
on any such interest coupon, shall have ceased to be such
officer before any bond, debenture or other corporate security
so signed or attested shall have been delivered, such bond,
debenture or other corporate security nevertheless may be
adopted by the Corporation and issued and delivered as though
the person who signed the same or whose facsimile signature
shall have been used thereon had not cease to be such officer of
the Corporation.
ARTICLE IX
INDEMNIFICATION
Section 9.1 Right to Indemnification. The Corporation
shall indemnify and hold harmless each person who was or is a
party or is threatened to be made a party to or is otherwise
involved in any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or
investigative (hereinafter a ?proceeding?), by reason of the
fact that such person is or was a director or an officer of the
Corporation or such director or officer is or was serving at the
request of the Corporation as a director, officer, partner,
member, manager, trustee, employee or agent of another
corporation or of a partnership, limited liability company,
joint venture, trust or other enterprise, including service with
respect to an employee benefit plan (hereinafter, an
?indemnitee?), to the fullest extent permitted by Colorado law,
as the same exists or may hereafter be amended (but, in the case
of any such amendment, only to the extent that such amendment
permits the Corporation to provide broader indemnification
rights than Colorado law permitted the Corporation to provide
prior to such amendment), against all expenses
including attorneys? fees and expenses), judgments, fines,
penalties and amounts paid in settlement actually and reasonably
incurred by such indemnitee in connection therewith.
Section 9.2 Right to Advancement of Expenses. The right to
indemnification conferred in Section 9.1 of these Bylaws shall
include the right to be paid by the Corporation the expenses
(including attorneys? fees) incurred by an indemnitee in
defending any such proceeding in advance of its final
disposition hereinafter, an (?advancement of expenses?)
provided, however, that, if the General Corporation Law of the
State of Colorado requires, an advancement of expenses shall be
made only upon receipt by the Corporation of an undertaking
(hereinafter an ?undertaking?), by or on behalf of such
indemnitee, to repay all amounts so advanced if it shall
ultimately be determined by final judicial decision from which
there is not further right to appeal (hereinafter, a ?final
adjudication?) that such indemnitee is not entitled to be
indemnified for such expenses under this Section 9.2 or
otherwise.
Section 9.3 Right of Indemnitee to Bring Suit. If a
claim under Section 9.1 or 9.2 of these Bylaws is not paid in
full by the Corporation within sixty (60) days after a written
claim has been received by the Corporation, except in the case
of a claim for an advancement of expenses, in which case the
applicable period shall be twenty (20) days, the indemnitee may
at any time thereafter bring suit against the Corporation to
recover the unpaid amount of the claim. If successful in whole
or in part in any such suit, or in a suit brought by the
Corporation to recover an advancement of expenses pursuant to
the terms of an undertaking, the indemnitee shall be entitled to
be paid also for the expense of prosecuting or defending such
suit. In (i) any suit brought by the indemnitee to enforce a
right to indemnification hereunder (but not in a suit brought by
the indemnitee to enforce a right to an advancement of expenses)
it shall be a defense that, and (ii) any suit brought by the
Corporation to recover an advancement of expenses pursuant to
the terms of an undertaking, the Corporation shall be entitled
to recover such expenses upon a final adjudication that, the
indemnitee has not met any applicable standard for
indemnification set forth in the General Corporation Law of the
State of Colorado. Neither the failure of the Corporation
(including its Board of Directors, independent legal counsel or
its stockholders) to have made a determination prior to the
commencement of such suit that indemnification of the indemnitee
is proper in the circumstances because the indemnitee has met
the applicable standard of conduct set forth in the General
Corporation Law of the State of Colorado, nor an actual
determination by the Corporation (including its Board of
Directors, independent legal counsel or its stockholders) that
the indemnitee has not met such applicable standard of conduct,
shall create a presumption that the indemnitee has not met the
applicable standard of conduct or, in the case of such a suit
brought by the indemnitee, be a defense to such suit. In any
suit brought by the indemnitee to enforce a right to
indemnification or to an advancement of expenses hereunder, or
brought by the Corporation to recover an advancement of expenses
pursuant to the terms of an undertaking, the burden of proving
that the indemnitee is not entitled to be indemnified, or to
such advancement of expenses, under this Article IX or otherwise
shall be on the Corporation.
Section 9.4 Non-Exclusivity of Rights. The rights to
indemnification and to the advancement of expenses provided by,
or granted pursuant to, this Article IX shall not be deemed
exclusive of any other rights to which any person may be
entitled under any law, the Certificate of Incorporation, these
Bylaws, any agreement, any vote of stockholders or disinterested
directors or otherwise.
Section 9.5 Insurance. The Corporation may purchase and
maintain insurance on behalf of any person who is or was a
director, officer, employee or agent of the Corporation, or is
or was serving at the request of the Corporation as a director,
officer, partner, member, manager, trustee, employee or agent of
another corporation or of a partnership, limited liability
company, joint venture, trust or other enterprise against any
liability asserted against such person and incurred by such
person in any such capacity, or arising out of such person?s
status as such, whether or not the Corporation would have the
power to indemnify such person against such liability under the
General Corporation Law of the State of Colorado.
Section 9.6 Indemnification of Employees and Agents of the
Corporation. The Corporation may, to the extent authorized
from time to time by the Board of Directors in its discretion,
grant rights to indemnification and to the advancement of
expenses to any employee or agent of the Corporation to the
fullest extent of the provisions of this Article IX with respect
to the indemnification and advancement of expenses of directors
and officers of the Corporation.
Section 9.7 Survival of Indemnification Rights. The
indemnification and advancement of expenses provided by, or
granted pursuant to, this Article IX shall, unless otherwise
provided when authorized or ratified, be contract rights and
such rights shall continue as to a person who has ceased to be a
director, officer, employee or agent of the Corporation and
shall inure to the benefit of the heirs, executors and
administrators of such person.
Section 9.8 Certain Definitions.
a) For purposes of this article IX, references to ?the
Corporation? shall include, in addition to the resulting
corporation, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or
merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors,
officers and employees or agents, so that any person who is or
was a director, officer, employee or agent of such constituent
corporation, or is or was serving at the request of such
constituent corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust
or other enterprise, shall stand in the same position under the
provisions of this Article IX with respect to the resulting or
surviving corporation as he would have with respect to such
constituent corporation if its separate existence had continued.
(b) For purposes of this article IX (i) references to ?other
enterprises? shall include employee benefit plans (ii) reference
to ?fines? shall include any excise taxes assessed on a person
with respect to an employee benefit plan (iii) references to
?serving at the request of the Corporation? shall include any
service as a director, officer, employee or agent of the
Corporation which imposes duties on, or involves services by,
such director, officer, employee or agent with respect to an
employee benefit plan, its participants or beneficiaries; and
(iv) a person who acted in good faith and in a manner he
reasonably believed to be in the interest of the participants
and beneficiaries of an employee benefit plan shall be deemed to
have acted in a manner ?not opposed to the best interests of the
Corporation? as referred to in this article IX.
Section 9.9 Amendment or Repeal. Neither any amendment,
repeal or other modification of any of the foregoing provisions
of this Article IX nor the adoption of any provisions of these
Bylaws inconsistent with this Article IX, shall eliminate,
reduce or otherwise adversely affect any right or protection
hereunder of any person in respect of any act or omission
occurring or alleged to occur prior to the time of such
amendment, repeal, modification or adoption.
ARTICLE X
GENERAL MATTERS
Section 10.1 Loans to Officers. The Corporation may lend
money to, or guarantee any obligation of, or otherwise assist
any officer or other employee of the Corporation or of its
subsidiaries, including any officer or employee who is a
director of the Corporation or any of its subsidiaries,
whenever, in the judgment of the Board of Directors, such loan,
guarantee or assistance may reasonably be expected to benefit
the Corporation. The loan, guarantee or other assistance may be
with or without interest and may be unsecured, or secured in
such manner as the Board of Directors shall approve, including,
without limitation, a pledge of shares of stock of the
Corporation. Nothing in these Bylaws shall be deemed to deny,
limit or restrict the powers of guaranty or warranty of the
Corporation at law.
Section 10.2 Disbursements. All checks, drafts, other
orders or demands for payment of money, notes or other evidence
of indebtedness of the Corporation shall be signed by such
officer or officers or such other person or persons as the Board
of Directors may from time to time authorize.
Section 10.3 Fiscal Year. The fiscal year of the Corporation
shall be fixed by resolution of the Board of Directors. If not
otherwise so fixed, the fiscal year of the Corporation shall be
the calendar year.
Section 10.4 Corporate Seal. The Board of Directors may,
in its discretion, adopt a corporate seal. The corporate seal,
if one is adopted by the Board of Directors, shall have
inscribed thereon the name of the Corporation, the year of its
organization and the words "Corporate Seal, Colorado". The seal
may be used by causing it or a facsimile thereof to be
impressed, affixed or otherwise reproduced.
Section 10.5 Certificate of Incorporation. All reference
in these Bylaws to the Certificate of Incorporation shall mean
the Certificate of Incorporation of the Corporation, as amended
or restated from time to time, and shall include any
Certificates of Designation thereunder.
ARTICLE XI
AMENDMENTS
Section 11.1 Amendments. Except as otherwise
provided in the Certificate of Incorporation, these Bylaws may
be altered, amended or repealed, in whole or in part, and new
Bylaws may be adopted, by the Board of Directors or by the
affirmative vote of stockholders holding at least a majority of
the voting power of the Corporation.
PART II AND III
4
offeringcircular.txt
OFFERING CIRCULAR
Form 1-A
Offering Circular
Bio Fil Inc.
Up to $5,000.000 in Common Share
500,000 Shares. $10.00 A Share
The United States Securities and Exchange Commission does
not pass upon the merits of or give its approval to any
securities offered or the terms of the offering, nor does it
pass upon the accuracy or completeness of any offering circular
or other solicitation materials. These securities are offered
pursuant to an exemption from registration with the Commission;
however, the Commission has not made an independent
determination that the securities offered hereunder are exempt
from registration
The offering statement relating to these securities has
been filed with the Securities and Exchange Commission. These
securities may not be sold nor may offers to buy be accepted
before the offering statement filed with the Commission is
qualified. This offering circular shall not constitute an offer
to sell or the solicitation of an offer to buy nor may there be
any sales of these securities in any state in which such offer,
solicitation or sale would be unlawful before registration or
qualification under the laws of any such state.
Generally, no sale may be made to you in this offering if
the aggregate purchase price you pay is more than 10% of the
greater of your annual income or net worth. Different rules
apply to accredited investors and non-natural persons. Before
making nay representation that your investment does not exceed
applicable thresholds, we encourage you to review Rule
251(d)(2)(i)(c) of Regulation A. For general information on
investing, we encourage you to refer to WWW.investor.gov
The mailing address for our office is:
Bio Fil Inc
2906 E Caley Avenue
Centennial, CO 80121
720-364-2476
Investing in our common shares is speculative and involves
substantial risks. You should purchase these securities only if
you can afford a complete loss of your investment. You should
carefully review the "Risk Factors" section of this offering
circular, beginning on page _8_, which contains a detailed
discussion of the material risks that you should consider before
you invest in our common stock.
This offering consists of Common Stock that is being offered on
a "best efforts" basis. Sales to Public commence on the date of
Qualification from the Securities and Exchange Commission. This
Offering shall remain open until December 31, 2017, unless
extended by the Company.
Price to Public Underwriting Discount
Proceeds to Proceeds to
And commissions Issuer
Other Persons
________________________________________________________________
___________
Per share/unit $10.00 0.00 $10.00
0.00
Total Minimum $1000.00 0.00 $1000.00 0.00
Total Maximum $5,000,000 0.00 $5,000,000
0.00
Minimum investment is 100 shares
This Offering Circular follows the Form S-1 disclosure format.
The date of this offering circular is January 24, 2017
Table of Contents
Page
Offering Summary 3
Business Description
4
Risk Factors 8
Use of Proceeds 10
Plan of Distribution and Selling Security Holders
10
Description of Property 11
Management's Discussion and Analysis of
11
Financial Condition and Results of Operations
Securities Offered 12
Dilution 14
Directors, Executive Officers and Significant Employees
14
Compensation of Directors and Executive Officers
16
Security Ownership of Management and Certain Securityholders
17
Interest of Management and Others in Certain Transactions
17
Disqualifying Events 18
Section F/S 19
Part III: Exhibit 21
Signatures 24
Acknowledgement Adopting Typed Signature 25
OFFERING SUMMARY
The following summary highlights selected information contained
in this Offering Circular. this summary does not contain all
the information that may be important. Before investing in this
offering, please review all information carefully, ask any
question that you would like answered and consult your own
counsel. References to "we", "us", "our", "Company" mean Bio Fil
Inc.
The principle purposes of this Offering is to use the proceeds
to produce, market, and obtain FDA's approval of a Biodegradable
Cigarette Filter.
There is currently no trading market for our common stock. The
absence of an active trading market will limit shareholders'
ability to sell their shares. Management is actively seeking
for market maker(s) to sponsor our securities and, subject to
availability of funds and FINRA requirements, will either have
our securities quoted on the OTC, or Pink Market. However,
there is no assurance that an active trading market for the
Company's stock will develop due to our no prior operating
history.
Price to Public Underwriting Discount
Proceeds to Proceeds to
And commissions Issuer
Other Persons
________________________________________________________________
___________
Per share/unit $10.00 0.00 $10.00 0.00
Total Minimum $1000.00 0.00 $1000.00 0.00
Total Maximum $5,000,000 0.00 $5,000,000
0.00
Business Description
Conventional cigarettes typically have a substantially
cylindrical rod shaped structure and include a charge, roll or
column of smokable material, such as shredded tobacco (e.g., in
cut filler form), surrounded by a paper wrapper, thereby forming
a so-called ?smokable rod? or ?tobacco rod.? Normally, a
cigarette also has a cylindrical filter element aligned in an
end-to-end relationship with the tobacco rod. The filter
element is commonly made of cellulose acetate fibers (typically
as many as 12,000 fibers) bonded to each other by triacetin
circumscribed by a paper material known as a ?plug
wrap.? Certain filter elements can also incorporate polyhydric
alcohols. Typically, the filter element is attached to one end
of the tobacco rod using a circumscribing wrapping material
known as ?tipping paper.? After smoking, the spent filters are
sometimes improperly discarded in the environment. The
cellulose acetate filaments tend to degrade slower than tobacco
and/or the paper parts of the cigarette, due to the highly
entangled nature of the fibers, solvent bonding between the
fibers, and the slow degradability of the cellulose acetate
polymer. Typically, the time required for a cigarette filter to
break down is 10-15 years, and it is estimated that every year
worldwide approximately 4.5 trillion cigarette butts wind up as
litter. It is estimated that about 30 per cent of the waste
along U.S. shorelines, waterways, and on land is made up by
cigarette butts.
Seeing the need for a biodegradable filter, one that can break
down significantly faster than the current filter on market, Bio
Fil Inc. has come up with a new filter to replace the one
currently used. Our cigarette filters are completely made of
organic materials, they break down significantly faster than
conventional filters, thereby having less impact on the
environment compared to conventional cigarette filters. For
example, there is less pollution around shorelines, waterways
and on land, which is not only aesthetically pleasing but also
reduces cleanup costs. A safer environment for animals is also
created, that might otherwise ingest conventional plastic
cigarette filters. There may even be some degree of health
benefits to smokers resulting from using the biodegradable
cigarette filters. While smoking undoubtedly presents serious
health hazards, a significant portion of these health problems
result from tar and other chemicals entering the lungs of the
smokers. Our biodegradable cigarette filters described capture
a larger amount of tar compared to conventional cigarette
filters, and thereby reduce the amount of tar that ends up in
the smoker?s lungs. So while smoking cessation is clearly the
best way to address health issues related to smoking, a person
who is not able to do this may still experience some degree of
benefit when smoking cigarettes that have a biodegradable
filter. In addition, the biodegradable filter shows a minimum
reduction in flavor compared to conventional cigarette filters.
As a result, Bio Fil Inc. is formed. Our business goal here is
to make a biodegradable filter to replace those that are
currently used. We do not involve in cigarette
manufacturing. We only make filters and filter tubes to provide
to cigarette manufacturing companies, cigarette filter
companies, and perhaps, sell to cigarette stores nationwide.
The company founder, Thuan Lu, holds a pending patent for a
biodegradable filter (Application Number 62426108). Bio Fil
Inc. looks to manufacture its biodegradable filters to replace
the current filters on market. Prototypes of our product will
be available to prospective investors upon request.
Bio Fil Inc is a start up company Incorporated in the State of
Colorado and operates its business in the State of Colorado. We
are located at 2906 E Caley Ave Centennial CO 80121 and our
current phone number is 720-364-2476. When the Company secure
the funds needed for our operations, management will identify
another location for our office and plant and will update the
information to all investors appropriately.
As of the date of this Offering Circular, the Company has no
employee, part time or full time.
The Company has not filed for bankruptcy protection nor has it
ever been involved in receivership or similar proceedings. The
Company is not presently involved in any legal proceedings
material to the business or financial condition of the
Company. The Company does not anticipate any material
reclassification, merger, consolidation, or purchase, or sale of
a significant amount of assets not in the ordinary course of
business.
The Industry
During 2015, more than 4 billion cigarettes were sold in the
United States. Four companies?Philip Morris USA, Reynolds
American Inc., ITG Brands, and Liggett, accounted for about 91%
of U.S. cigarette sales. Imports accounted for approximately 9%
of U.S. cigarette sales in 2015.
The U.S. Market
According to the Centers for Disease Control Prevention, below
is the percentage of adults aged 18 years or older who were
current cigarette smokers in the United States in 2015:
* 15.1% of all adults (36.5 million people): 16.7% of males,
13.6% of females
* Nearly 22 of every 100 non-Hispanic American Indians/Alaska
Natives (21.9%)
* About 20 of every 100 non-Hispanic multiple race
individuals (20.2%)
* Nearly 17 of every 100 non-Hispanic Blacks (16.7%)
* Nearly 17 of every 100 non-Hispanic Whites (16.6%)
* About 10 of every 100 Hispanics (10.1%)
* 7 of every 100 non-Hispanic Asians (7.0%)
Each day, more than 3,200 people younger than 18 years of age
smoke their first cigarette and an estimated 2,100 youth and
young adults who have been occasional smokers become daily
cigarette smokers. During 2015, more than 4 billion cigarettes
were sold in the United States.
World Market
Statistic show that revenues of the cigarette industry is over
400 billion annually. Globally, approximate 5.8 trillion
cigarettes are produced in 2015. The number of smokers and
cigarettes produced keep rising due to population growth. It is
expected that by 2025, the number of smoker worldwide will be
1.6 billion.
Competitive Analysis
As a start up company, Bio Fil Inc.faces some competitions and
they are identified below:
1. Electronic Cigarettes
A number of electronic products, such as electronic cigarettes
(e-cigarettes), electronic cigars (e-cigars), and electronic
pipes (e-pipes), are being introduced in the marketplace in
recent years. Electronic cigarette uses are on the rise in the
United States and it is expected to continue rising over time.
However, electronic cigarettes have many set backs and that's
why it has not hurt the cigarette industry much since its
introduction to the market.
* Electronic cigarette is not safe. Defective battery can
explode or if improperly use.
* E Liquids are very poisonous, especially to toddlers and
children; who might drink the liquid because of the
pleasant smell.
* Electronic cigarettes don't deliver the buzz that all
smokers want compare to conventional cigarettes.
* Electronic cigarettes are expensive.
It is important to note that the high percentage of smokers in
the world are middle and low income people. Many of the
smokers, buying one electronic cigarette, could equal to few
months of their income. As a result, the volume of electronic
cigarette uses is very low in the third world countries.
2. Current Cigarette Filter Manufacturing Companies
The company will face competition from existing cigarette filter
manufacturing companies, who will fight to retain their market
shares. However, most competing companies do not have the
filter that is biodegradable like Bio Fil Inc does.
Bio Fil Inc. will capitalize on its competitors' weaknesses by
building on the following strengths:
* Unique filter that is protected by the patent.
* Reduce costs as much as possible to keep its price
competitive and to increase investor's profit.
* Knowledgeable management team.
3. Cigarette Companies
To convince cigarette companies to switch to Bio Fil Inc.'s
degradable filter, the Company will:
* Keep prices very competitive to what they are paying now.
* Show that our biodegradable filters benefit cigarette
companies in terms of costs and negative publicity.
* Show that cigarette companies can help save our ocean,
waterways, widlife?
According to the Center for Marine Conservation, cigarette butt
litter accounts for one in every five items collected on
cleanups, making it the most prevalent form of litter ON EARTH.
Globally, approximately 5 trillion cigarette butts are littered
every year. Smokers in the USA account for over 250 billion
cigarette butts, in the UK 200 tons of butts are discarded, and
Australian smokers litter over 7 billion cigarette butts
annually. In most Western countries cigarette butt litter
accounts for around 50% of all litter.
* There are 1 billion smokers in the world today, and if
current trends continue, that number is expected to
increase to 1.6 billion by the year 2025.
* Worldwide, approximately 10 million cigarettes are
purchased a minute, 15 billion are sold each day, and
upwards of 5 trillion are produced and used on an annual
basis.
* Cigarette filters are made of cellulose acetate, a
plastic. After discarded, it can take up to 15 years for
the filter to decay.
It's estimated that trillions of filters, filled with toxic
chemicals from tobacco smoke, make their way into our
environment as discarded waste yearly.
Economic & Environmental Impact
When it comes to cigarette litter, we all pay. Cigarette litter
not only affects us as individuals, but also impacts your local
community, including business owners and residents as well as
the community environment.
Economically, cigarette butt litter:
Requires additional sidewalk and street sweeping, greenway and
park maintenance, storm drain cleaning, and increased
maintenance of stormwater filters.
Makes business owners bear the expense of cigarette butt and
cigar tip litter cleanup around entrances, exits, sidewalks, and
parking lots.
Can result in a decline in a city?s foot traffic, tourism,
business development, and housing. In fact, the presence of
litter in a community decreases property values by a little over
7%. Focusing on small improvements, like reducing cigarette butt
litter, creates safer and more economically vibrant communities.
Takes a toll on recreation areas and public spaces. Tobacco
litter represents nearly 34.4% of all litter in outdoor
recreation areas such as picnic areas, hiking trails, parks,
etc. decreasing the appeal of these natural areas.
Environmentally, cigarette butt litter:
32% of litter at storm drains is tobacco products. 80% of butts
on the ground find their way into our water systems and detract
from the quality of our drinking water. Cigarette butts have
been found in the stomachs of fish, whales, birds and other
marine animals which leads to ingestion of hazardous chemicals
and digestive blockages. Animals, marine life, and toddlers who
ingest dropped cigarette butts can become ill or die from them.
Risks Associated with Our Business
"RISK FACTORS"
Investing in our common stock involves a number of risks, some
of which, including market, regulatory risks, competitions....
You should carefully consider the risks described below before
making a decision to invest in our common stock.
1. We face competitors in the conventional cigarette filter
market.
Conventional cigarette filters will continue to dominate the
market in the beginning. As we introduce our filter to the
market, gradually, more and more consumers will know about our
filter and its biodegradable feature.
2. Regulations and Taxes could lead to declination in numbers
of smokers.
New laws may ban smoking altogether or increase in taxes will
lead to higher prices of cigarette, which will lead to
declination of cigarette consumption, and thus, reduce our sales
and our profitability.
3. We may face increase costs in labor.
Wage laws may change, which may increase our costs of labor and
reduce our profitability.
4 Negative publicity may reduce sale of tobacco products.
Due to health risk, consumption of cigarette continue to
decline. Declination in cigarette consumption will lead to
lower demand for our filter, which will lead to low sale volume
and lower profit.
5. Counterfeit.
When our product is superior than current filter, counterfeit
products may appear on the market. Counterfeiting will reduce
our revenue and profit.
6. The reliance on outside suppliers for raw materials.
We rely on many Southeast countries for our fibers, which is the
main material used in the production of our filter. Changes in
climate, regulations, import and export restrictions, could
affect our ability to buy the fibers needed.
7. E-Cigarette Trend could reduce cigarette consumptions.
Electronic cigarette uses currently on the rise. It could
reduce the demand for conventional cigarette and thus, lead to
lower demand for our filter.
8. Emerging Market
Foreign markets could introduce their products to the U.S.
market illegally and affect the demand of cigarette use in the
United States, which will lead to lower demand for our filter.
9. Cigarette Companies May Not Accept Our Filter
Our filters may not be accepted by cigarette companies and we
cannot sell. We will not have revenue.
10. The Food and Drug Administration
The FDA requires that product used by human be free from
possible harmful side effects resulting from
use. While our raw material used is organic and safe, it
still needs FDA approval prior to production.
11. Unknown Risks
Unforeseen risks such as war, nature, bans of cigarette uses,
diminishing social acceptance, all can lead to lower demand for
our filter.
If any the the above risks actually occur, the trading price of
our common stock would likely decline, and you may lose all or
part of your investment.
USE OF PROCEEDS
The principal purposes of the offering are to raise capitals
needed to put the Company in operations. Assuming the offering
is fully subscribed, our net proceeds from the offering at
$10.00 a share will be $5,000,000 since there is no underwriter
involved. However, if the Company finds and retain the services
of the underwriter, depend on discounts and commissions
agreed, our net proceeds will be less than the amount
anticipated. We will update the information if we have any
arrangement made.
The Company intends to use its proceeds as follow:
a. 20% fee pay to the Food and Drug Administration.
b. 30% to purchase machineries and equipment.
c. 20% to purchase raw materials and supplies.
d. 30% for operating expenses.
Management of the Company has wide latitude and discretion in
the use of proceeds from this Offering. Our first priority is to
use the funds to get our filter product to pass Food and Drug
Administration?s approval. The remaining proceeds from this
Offering will be used for working capitals such as materials and
supplies, machineries and equipment, and a portion of the
proceeds from this Offering may be used to make payments to
officers, directors, and employees of the issuer. At present,
there are no agreements between the Company and its officers or
directors arranged.
The Company reserves the right to change the use of proceeds set
out herein based on the needs of the ongoing business of the
Company and the discretion of the Company?s management. If we
failed to raise the full amount of this Offering, the Company
may reallocate the estimated use of proceeds among the various
categories. In such case, the Company may spend whatever we
raised from this Offering for FDA; since FDA fees is not fixed,
management expect that fees pay to the FDA could be more than
20% anticipated.
Depending upon developments in the Company's business, the
Company may also need more working capitals and may finance it
through the sale of additional securities. Given the scope of
the market, additional sale of securities is very likely as we
expand our company.
Plan of Distribution and Selling Security Holders
We may sell the securities offered pursuant to this Offering
Circular in any of the following ways:
? directly to one or more purchasers;
? through agents;
? through underwriters, brokers or dealers; or
? through a combination of any of these methods of sale.
All of the Common Stock is newly authorized and issued by the
Company. None of the Shares being sold in this offering are
being sold by present securities holders. At present, Bio Fil
Inc. does not have an underwriter and does not engage any Broker
Dealer or Transfer Agent with our Offering. There are no plans
to return funds to subscribers if all of the securities to be
offered are not sold.
The sale of other securities of the same class as those to be
offered for the period of distribution will be limited and
restricted to those sold through this Offering. Because the
Shares being sold are not publicly or otherwise traded, the
market for the securities offered is presently stabilized.
Description of Property
As of the date of this Offering Circular, our place of operation
is 2906 E Caley, Centennial, CO 80121. When the Company
successfully raised enough funds needed for our operations,
management will identify another location for our office and
plant and will update the information to all investors of
records either through email or conventional mails..
Management's Discussion and Analysis of Financial Condition and
Results of Operations
This discussion contains forward looking statements reflecting
our current expectations that involve risks and
uncertainty. Actual results and timing of events may differ
materially from those contained in these forward looking
statements due to a number of factors, including those discussed
in the "Risk Factors" and elsewhere in this Offering Circular.
Bio Fil Inc. was formed in the State of Colorado on January
13th, 2017. The Company was formed for the purpose of
manufacture biodegradable cigarette filters and sell our filters
to cigarette filter manufacturing companies or cigarette
companies worldwide.
Operating Results
Revenue: Bio Fil In. is in the startup phase and as of
the date of this Offering Circular, the Company has no
sales and no revenue.
Operating Expenses: Operating expenses since date of
inception were $365.00. Operating expense was paid to the
Secretary of State to incorporate the Company and our
corporate bylaws.
Net Loss: Net loss since inception date was ($365.00)
Since we have administrative expenses such as professional
service fees, Securities and Exchange Commission fees, We expect
our operating expenses to increase with setting up the
operations. Our operating costs exceed revenue because we have
no sales.
Liquidity and Capital Resources.
Currently, we have net cash of $0.00. Our net loss of ($365.00)
was advanced from our Founder and CEO, Thuan Lu. Until we
receive an approval from the FDA, and until we receive orders
from prospective clients, our net loss only increase. Also,
until we raise funds in this Offering, our CEO will continue to
advance the capitals needed for us.
Plan of Operations
Assuming that we successfully raised the amount needed in this
Offering, our plan of operation for the 12 months following the
commencement of this Offering as follow:
Our first priority is to send our Biodegradable Cigarette Filter
prototype to the Food and Drug Administration for approval.
In the meantime, we will identify a location for our office and
plant and obtain all necessary licenses. We will have a team in
place for machineries and equipments, purchase raw materials and
supplies needed. We will put in sale teams for discussing with
cigarette companies and cigarette manufacturing companies
worldwide.
The proceeds from this Offering will not satisfy our cash
requirements and we anticipated to raise additional funds to
implement our plan of operations. If our biodegradable filter is
welcome by cigarette companies and advance orders be taken,
management will have to raise additional capital to finance our
production requirements.
Trend Information:
Since we are a start up company and have not started to produce
our filter for sale yet, we are unable to identify the recent
trends in production, sale, inventory, the state of the order
book, costs, or selling prices since the latest financial
year. For the same reason, for the current year, we are unable
to identify any known trends, uncertainties, demands,
commitments or events based our our business that are reasonably
likely to have a material effects on our net sales or revenue,
income from continuing operations, profitability, liquidity or
capital resources, or that would cause the reported financial
information in this Offering not necessarily to be indicative of
future operating results or financial condition. Investors are
encouraged to read sections ?RISK FACTORS? and ?BUSINESS
DESCRIPTION? carefully..
Securities Offered
This offering consists of Common Stock that is being offered on
a "best efforts" basis, which means that there is no guaranteed
that any minimum amount will be sold. The Shares are being
offered and sold by Bio Fil Inc. There is no minimum number of
shares that needs to be sold in order for funds to be used in
the operations of the Company's business in a manner consistent
with the "Use of Proceeds" in this Offering Circular
The Company is offering Shares of its Common Stock. Except as
otherwise required by law, the Company?s Certificate of
Incorporation or Bylaws, each Shareholder shall be entitled to
one vote for each Share held by such Shareholder on the record
date of any vote of Shareholders of the Company. The Shares of
Common Stock, when issued, will be fully paid and nonassessable.
The Company does not expect to declare dividends for holders of
Common Stock in the foreseeable future. Dividends will be
declared, if at all (and subject to rights of holders of
additional classes of securities, if any), in the discretion of
the Company?s Board of Directors. Dividends, if ever declared,
may be paid in cash, in property, or in shares of the capital
stock of the Company, subject to the provisions of law, the
Company?s Bylaws and the Certificate of Incorporation. Before
payment of any dividend, there may be set aside out of any funds
of the Company available for dividends such sums as the Board of
Directors, in its absolute discretion, deems proper as a reserve
for working capital, to meet contingencies, for equalizing
dividends, for repairing or maintaining any property of the
Company, or for such other purposes as the Board of Directors
shall deem in the best interests of the Company.
The minimum subscription that will be accepted from an investor
is One Thousand Dollars ($1000.00) (the "Minimum Subscription").
A subscription may be made only by tendering to the Company the
executed Subscription Agreement (electronically or in writing)
delivered with the subscription price in a form acceptable to
the Company, via cash, check, or money order. The execution and
tender of the documents required, as detailed in the materials,
constitutes a binding offer to purchase the number of Shares
stipulated therein and an agreement to hold the offer open until
the Expiration Date or until the offer is accepted or rejected
by the Company, whichever occurs first.
The Company reserves the unqualified discretionary right to
reject any subscription for Shares, in whole or in part. If the
Company rejects any offer to subscribe for the Shares, it will
return the subscription payment, without interest or reduction.
The Company's acceptance of your subscription will be effective
when an authorized representative of the Company issues you
written or electronic notification that the subscription was
accepted.
There are no liquidation rights, preemptive rights, conversion
rights, redemption provisions, sinking fund provisions, impacts
on classification of the Board of Directors where cumulative
voting is permitted or required related to the Common Stock,
provisions discriminating against any existing or prospective
holder of the Common Stock as a result of such Shareholder
owning a substantial amount of securities, or rights of
Shareholders that may be modified otherwise than by a vote of a
majority or more of the shares outstanding, voting as a class
defined in any corporate document as of the date of filing. The
Common Stock will not be subject to further calls or assessment
by the Company. There are no restrictions on alienability of the
Common Stock in the corporate documents other than those
disclosed in this Offering Circular.
There are no known potential liabilities imposed on
securityholders under state statutes or foreign laws.For
additional information regarding the Shares, please review the
Company?s Bylaws, which are attached to this Offering
Circular.
The Company does not have any shares of preferred stock
authorized or have any debt securities authorized. There are no
other classes of stock in the Company as of the date of this
Offering Circular.
Dilution
The investor's stake in a company could be diluted due to
the company issuing additional shares. If we decide to issue
more shares, an investor could experience value dilution, with
each share being worth less than before, and control dilution,
with the total percentage an investor owns being less than
before. In other words, when the company issue more shares, the
percentage of the company that you own will decrease.
If you are making an investment expecting to own a certain
percentage of the company or expecting each share to hold a
certain amount of value, it's important to realize how the value
of those shares can decrease by actions taken by the
company. Dilution can make drastic changes to the value of each
share, ownership percentage, voting control, and earnings per
share.
Compensation of Executive Officers and Directors.
Directors, Executive Officers and Significant Employees
The directors, executive officers and significant employees of
the Company as of January 24th, 2017 are as follows:
Name
Position
Age
Term of
Office
Approximate hours
per week for part
time employee(2)
Executive
Officer
Thuan Lu
Chief
Executive
Officer
44
01/13/17
- present
10
Peter Pham
Chief
Operating
Officer
57
01/13/17
- present
0
Bao Ho
Executive
President of
Marketing
34
01/13/17
- present
0
Directors
Tu Huynh
Director
35
01/13/17
- present
n/a
Significant
Employee
n/a
n/a
n/a
n/a
There are no arrangement or understanding exist among the
Company, its Executive Officers and Directors.
There is no family relationship between any of our Executive
Officers and Directors.
Thuan Lu, Company Founder and CEO
Prior to this, Mr. Lu worked as a real estate agent from 1998 to
2004. In 2003, Mr. Lu started an insurance agency and worked as
an agent and broker in the insurance industry from 2003 to
2016. Mr. Lu also owned and managed nail salons, travel agency,
and provides bookkeeping for businesses in the Vietnamese
community.
Mr. Lu earned his Bachelor of Science degree in Business
Administration, with a Minor in Economics,from the University of
Colorado at Boulder. He is fluent in English and Vietnamese,
and also speak some Chinese.
Peter Pham
Mr. Pham currently is self employed. He owns, operates, and
manage various businesses such as restaurants and landscaping
company. Mr. Pham has a BS in Business Administration from the
University of Hue. Mr. Pham will serve the Company as President
and Chief Operating Officer.
Bao Ho
Mr. Ho currently is contracted with various government agencies
such as the Department of Homeland Security, Department of
Justice, and the Department of Defense. Mr. Ho has a BS in
Finance from the University of Denver, Colorado. Mr. Ho will
serve the Company as the Executive President of Marketing.
Tu Huynh
Mr. Huynh currently works as a Data Analyst for Precision
Discovery in Colorado. Mr. Huynh earned his Master degree in
Applied Mathematics from the University of Denver in 2006. Mr
Huynh will serve the company as Executive Vice President of
Marketing.
To the best of our knowledge, there are no legal proceedings
pending against any of our Executive Officers and Director
regards bankruptcy, or a receiver, fiscal agent, or similar
officer appointed by a court for the business or property of
such person, or any partnership in which he was general partner
at or within two years before the time of such filing, or any
corporation or business association of which he was an executive
officer at or within two years before the time of such
filing.and to the best of our knowledge, there are no such legal
events occurred in the last five years.
To the best of our knowledge, there are no criminal proceeding
pending against, contemplated, or threatened to any of our
Executive Officers and Directors, or the Company.
Compensation of Directors and Executive Officers
Name
Capacities in
which
compensation
was received
Cash
Compensation
$
Other
Compensation
$
Total
Compensation
$
Thuan
Lu
Chief
Executive
Officer
0.00
0.00
0.00
Peter
Pham
Chief
Operating
Officer
0.00
0.00
0.00
Bao
Ho
Executive
President of
Marketing
0.00
0.00
0.00
Tu
Huynh
Director
0.00
0.00
0.00
At present, the Company has three Executive Officers and one
Director. At present, none of our Executive Officers or Director
are being compensated for their services to the Company. The
Company may choose to compensate the present director in the
future, as well as compensate future directors, in the Company?s
discretion. We have not entered into any employment agreements
with our executive officers or director to date. We may enter
into employment agreements with them in the future.
Since our Chief Executive Officer holds a pending patent for our
product line (the Biodegradable Cigarette Filter), Management
have decided that we will pay our Chief Executive Officer
$3000.00 royalty per month for Copyright use of the
filter. Royalty payments begin on the 1st date of each month
with the first payment due February 1st, 2017.
As of January 24th, 2017, the Company have no employee. The
Company plans to hire additional employees at such time as the
Company has sufficient cash to fund the expanded launch of its
business plans.
Security Ownership of Management and Certain Securityholders
As of January 24th, 2017, there is no beneficial ownership of
our Common Stock at the time of this Offering by any of our
directors or executive officers or by all of our directors and
executive officers as a group.
There are no other securityholder who beneficially owns more
than 10% of any class of the issuer?s voting securities as such
beneficial ownership would be calculated if the issuer were
subject to Rule 13d-3(d)(1)of the Securities Exchange Act of
1934.
Title
of
Class
Name and
Address of
Beneficial
Owner(1)
Amount and
nature of
Beneficial
Ownership
Amount and Nature
of Beneficial
ownership
Acquirable(2)
Percent
of
Class(3)
n/a
n/a
n/a
n/a
n/a
Interest of Management and Others in Certain Transactions
Bio Fil Inc. was incorporated on January 13th, 2017 and the
Company does not have information for the last two fiscal
year. For current fiscal year,there is no transaction or
proposed transactions to which the issuer or any of its
subsidiaries was or is to be a participant. and that there are
no persons had or is to have a direct or indirect material
interest in the Company.
Disqualifying Events
Recent changes to Regulation A promulgated under the Securities
Act prohibit an issuer from claiming an exemption from
registration of its securities under such rule if the issuer,
any of its predecessors, any affiliated issuer, any director,
executive officer, other officer participating in the offering
of the interests, general partner or managing member of the
issuer, any beneficial owner of 20% or more of the voting power
of the issuer?s outstanding voting equity securities, any
promoter connected with the issuer in any capacity as of the
date hereof, any investment manager of the issuer, any person
that has been or will be paid (directly or indirectly)
remuneration for solicitation of purchasers in connection with
such sale of the issuer?s interests, any general partner or
managing member of any such investment manager or solicitor, or
any director, executive officer or other officer participating
in the offering of any such investment manager or solicitor or
general partner or managing member of such investment manager or
solicitor has been subject to certain ?Disqualifying Events?
described in Rule 506(d)(1) of Regulation D subsequent to
September 23, 2013, subject to certain limited exceptions. The
Company is required to exercise reasonable care in conducting an
inquiry to determine whether any such persons have been subject
to such Disqualifying Events and is required to disclose any
Disqualifying Events that occurred prior to September 23, 2013
to investors in the Company.
The Company believes that it has exercised reasonable care in
conducting an inquiry into Disqualifying Events by the foregoing
persons and is aware of the no such Disqualifying Events exist.
It is possible that (a) Disqualifying Events may exist of which
the Company is not aware and (b) the SEC, a court or other
finder of fact may determine that the steps that the Company has
taken to conduct its inquiry were inadequate and did not
constitute reasonable care. If such a finding were made, the
Company may lose its ability rely upon exemptions under
Regulation A, and, depending on the circumstances, may be
required to register the Offering of the Company?s Common Stock
with the SEC and under applicable state securities laws or to
conduct a rescission offer with respect to the securities sold
in the Offering.
Section F/S
Financial Statements
Bio Fil Inc.
Consolidated Balance Sheet
December 31,
2017
As of January 24th,
2017 (inception)
Assets
Prepaid expenses and other current assets
$0.00
Total current assets
$0.00
Total Non Current Assets $0.00
Total Assets $0.00
Liabilities and stockholder?s equity
Current Liabilities $0.00
Account Payable $0.00
Total Current Liabilities
$0.00
Stockholder?s equity
$0.00
Total Stockholder?s equity
$0.00
Total Liabilities and stockholder?s equity
$0.00
Bio Fil Inc.
Consolidated Statement of Income
December 31,
2017
As of January 24th,
2017 (inception)
Income from operating activities
$0.00
Total Income $0.00
Bio Fil Inc.
Consolidated Cash Flows
December 31, 2017
As of January 24th,
2017 (inception)
Cash flows from operating activities
Net Loss $ (365.00)
Total Loss $
(365.00)
Bio Fil Inc.
Consolidated Statement of Stockholder?s Equity
December 31,
2017
As of January 24th,
2017 (inception)
Stockholder?s Equity
$0.00
Total Stockholder?s Equity
$0.00
PART III: EXHIBITS
Index to Exhibits
Description Item Exhibit
Underwriting Agreement 17.1 1-a
Charter and bylaws 17.2 1-b
Subscription Agreement 17.4 1-c
Voting Trust Agreement 17.5 1-d
Material Contracts 17.6 1-e
Plan of acquisition, reorganization 17.7
1-f
Arrangement, liquidation, or succession
Escrow Agreements 17.8 1-g
Letter re change in certifying accountant 17.9
1-h
Power of Attorney 17.10 1-i
Consents 17.11 1-j
Opinion re legality 17.12 1-k
Testing the waters 17.13 1-l
Appointment of Agent for Service of Process 17.14
1-m
Additional exhibits 17.15 1-n
Exhibit 1-a
Underwriting Agreement
There are no underwriting contract or agreement exists with this
Offering.
Exhibit 1-b
Charter and Bylaws including Amendments
Attachment
Exhibit 1-c
Subscription Agreement
Attachment
Exhibit 1-d
Voting Trust Agreement
As of the date of this filing, there are no voting trust
agreement or amendments exists.
Exhibit 1-e
Material Contracts
As of the date of this filing, there are no material contracts
exists.
Exhibit 1-f
Plan of acquisition, reorganization, arrangement, liquidation,
or succession
As of the date of this filing, there are no plan of acquisition,
disposition, reorganization, readjustment, succession,
liquidation, or arrangement pending or exists.
Exhibit 1-g
Escrow Agreements
There are no escrow agreement or similar arrangement which has
been executed in connection with this Regulation A Offering
Exhibit 1-h
Letter re Change in Certifying Accountant
As of the date of this filing, there are no accountant involves
is this Regulation A Offering
Exhibit 1-i
Power of Attorney
As of the date of this filing, there are no power of attorney
authorized.
Exhibit 1-j
Consents
Af of the date of this filing, there are no consent, written or
orally, from any experts or any other persons in connect with
this Offering.
Exhibit 1-k
Opinion re Legality
As of the date of this filing, there are no counsel opinion as
to the legality of the securities covered by the Offering
Statement.
Exhibit 1-l
Testing the Waters
As of the date of this filing, there are no written
communication or broadcast script used under the authorization
of Rule 255.
Exhibit 1-m
Appointment of agent for Services of Process
As of the date of this filing, there are no appointment of agent
for service of process authorized.
Exhibit 1-n
Additional Exhibits
None.
SIGNATURES
Pursuant to the requirements of Regulation A, the issuer
certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing on Form 1-A and has
duly caused this offering statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of
Centennial, State of Colorado, on January 24th, 2017
Bio Fil Inc.
By ___________Thuan Lu___________
Chief Executive Officer
This offering statement has been signed by the following persons
in the capacities and on the dates indicated
By __________Bao Ho______________.
Executive President of Marketing
Date _____01/24/2017______________.
By _______Tu Huynh_______________.
Director
Date ______01/24/2017_____________.
ACKNOWLEDGEMENT ADOPTING TYPED SIGNATURES
The undersigned hereby authenticate, acknowledge and otherwise
adopt the typed signatures above and as otherwise appear in this
filing and Offering.
By: ___/S/_______________________________________
Thuan Lu
Thuan Lu
Chief Executive Officer
January 24th, 2017
By: ___/S/_______________________________________
Bao Ho
Bao Ho
Chief Executive Officer of Marketing
January 24th, 2017
By: ___/S/_______________________________________
Tu Huynh
Tu Huynh
Director
January 24th, 2017