As filed with the Securities and Exchange Commission on October 23, 1997
File No. 333-_______
________________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
_________
WORKFORCE SYSTEMS CORP.
(Exact name of issuer as specified in its charter)
Florida 65-0353816
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
7777 Glades Road, Suite 211
Boca Raton, Florida 33434
(Address of principal executive offices) (Zip Code)
_________
WORKFORCE SYSTEMS CORP. 1997 STOCK OPTION PLAN
(Full title of the plan)
Robert Hausman
7777 Glades Road, Suite 211
Boca Raton, Florida 33434
(561) 488-4802
(Name and address of agent for service)
Copy to:
Charles B. Pearlman, Esq.
Atlas, Pearlman, Trop & Borkson, P.A.
200 East Las Olas Boulevard, Suite 1900
Fort Lauderdale, Florida 33301
(954) 763-1200
________________
CALCULATION OF REGISTRATION FEE
________________________________________________________________________________
Proposed Proposed
maximum maximum
offering aggregate Amount of
Title of securities Amount to be price per offering registration
to be registered registered(1) share(1) price(1) fee (1)
________________________________________________________________________________
Common Stock
($.001 par value) 1,000,000 shares $4.5625 $4,562,500 $1383.00
________________________________________________________________________________
(1) Estimated solely for the purpose of computing the amount of the
registration fee in accordance with Rule 457(c) under the Securities Act
based upon the closing bid price for the Common Stock, $.001 per share
(the "Common Stock") as reported by the NASD OTC Bulletin Board on October
17, 1997.
2
WORKFORCE SYSTEMS CORP.
CROSS REFERENCE SHEET REQUIRED BY ITEM 501(b) OF REGULATION S-K
Form S-8 Item Number
and Caption Caption in Prospectus
-------------------- ---------------------
1. Forepart of Registration State- Facing Page of Registration
ment and Outside Front Cover Statement and Cover Page of
Page of Prospectus Prospectus
2. Inside Front and Outside Back Inside Cover Page of Prospectus
Cover Pages of Prospectus and Outside Cover Page of
Prospectus
3. Summary Information, Risk Fac- Not Applicable
tors and Ratio of Earnings to
Fixed Charges
4. Use of Proceeds Not Applicable
5. Determination of Offering Price Not Applicable
6. Dilution Not Applicable
7. Selling Security Holders Not Applicable
8. Plan of Distribution Cover Page of Prospectus and
Sales by Selling Security
Holders
9. Description of Securities to be Description of Securities;
Registered Workforce Systems Corp.
1997 Stock Option Plan
10. Interests of Named Experts and Legal Matters
Counsel
11. Material Changes Not Applicable
12. Incorporation of Certain Infor- Incorporation of Certain
mation by Reference Documents by Reference
13. Disclosure of Commission Posi- Indemnification
tion on Indemnification for
Securities Act Liabilities
3
PROSPECTUS
WORKFORCE SYSTEMS CORP.
1,000,000 Shares of Common Stock
($.001 par value)
To Be Issued Pursuant to the
Workforce Systems Corp. 1997 Stock Option Plan
This Prospectus is part of a Registration Statement which registers an
aggregate of 1,000,000 shares of Common Stock, $.001 par value (such shares
being collectively referred to as the "Shares") of Workforce Systems Corp. (the
"Company") which may be issued, as set forth herein, to officers, directors, key
employees and consultants of the Company pursuant to the exercise of
non-qualified or incentive stock options to purchase up to 1,000,000 shares of
Common Stock under and in accordance with the Workforce Systems Corp. 1997 Stock
Option Plan (the "Plan") (the Plan covers the issuance of up to 1,000,000 shares
of Common Stock), and separate stock option agreements with employees and
directors (the "Option Agreements") (such options being collectively referred to
as "Options"). All of the Options or Shares will be granted or issued to such
officers, directors, key employees and consultants pursuant to individual
written option agreements. Such selling stockholders may sometimes hereafter be
collectively referred to as the "Selling Security Holders." The Company has been
advised by the Selling Security Holders that they may sell all or a portion of
the Shares from time to time in the over-the-counter market, in negotiated
transactions, directly or through brokers or otherwise, and that such shares
will be sold at market prices prevailing at the time of such sales or at
negotiated prices, and the Company will not receive any proceeds from such sales
except upon exercise of the Options.
No person has been authorized by the Company to give any information or to
make any representation other than as contained in this Prospectus, and if given
or made, such information or representation must not be relied upon as having
been authorized by the Company. Neither the delivery of this Prospectus nor any
distribution of the Shares issuable upon exercise of the Options or under the
terms of the Agreements shall, under any circumstances, create any implication
that there has been no change in the affairs of the Company since the date
hereof.
________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED ON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
________
This Prospectus does not constitute an offer to sell securities in any
state to any person to whom it is unlawful to make such offer in such state.
The date of this Prospectus is October 22, 1997.
4
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and, in accordance
therewith, files reports, proxy statements and other information with the
Securities and Exchange Commission (the "Commission"). Reports, proxy statements
and other information filed with the Commission can be inspected and copied at
the public reference facilities of the Commission at 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of this material can also be obtained at
prescribed rates from the Public Reference Section of the Commission at its
principal office at 450 Fifth Street, N.W., Washington, D.C. 20549. The
Commission also maintains a website on the Internet that contains reports, proxy
and information statements and other information regarding registrants that file
electronically with the Commission at http://www.sec.gov. The Company's Common
Stock is traded on the NASD OTC Bulletin Board under the symbol "WFSY."
The Company has filed with the Commission a Registration Statement on Form
S-8 (the "Registration Statement") under the Securities Act of 1933, as amended
(the "Act"), with respect to an aggregate of 1,000,000 shares of the Company's
Common Stock, issued or to be issued to officers, directors, key employees or
consultants to the Company under the Plan, the Option Agreements or the
Agreements, as the case may be. This Prospectus, which is Part I of the
Registration Statement, omits certain information contained in the Registration
Statement. For further information with respect to the Company and the shares of
the Common Stock offered by this Prospectus, reference is made to the
Registration Statement, including the exhibits thereto. Statements in this
Prospectus as to any document are not necessarily complete, and where any such
document is an exhibit to the Registration Statement or is incorporated by
reference herein, each such statement is qualified in all respects by the
provisions of such exhibit or other document, to which reference is hereby made,
for a full statement of the provisions thereof. A copy of the Registration
Statement, with exhibits, may be obtained from the Commission's office in
Washington, D.C. (at the above address) upon payment of the fees prescribed by
the rules and regulations of the Commission, or examined there without charge.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents filed by the Company with the Securities and
Exchange Commission are incorporated herein by reference and made a part hereof:
1. The Company's Annual Report on Form 10-KSB for the fiscal year ended
June 30, 1997.
2. All other reports filed pursuant to Section 13(a) or 15(d) of the
Exchange Act since the end of the fiscal year covered by the annual report
referred to above.
All reports and documents filed by the Company pursuant to Section 13, 14
or 15(d) of the Exchange Act, prior to the filing of a post-effective amendment
5
which indicates that all securities offered hereby have been sold or which
deregisters all securities then remaining unsold, shall be deemed to be
incorporated by reference herein and to be a part hereof from the respective
date of filing of such documents. Any statement incorporated by reference herein
shall be deemed to be modified or superseded for purposes of this Prospectus to
the extent that a statement contained herein or in any other subsequently filed
document, which also is or is deemed to be incorporated by reference herein,
modifies or supersedes such statement. Any statement modified or superseded
shall not be deemed, except as so modified or superseded, to constitute part of
this Prospectus.
The Company hereby undertakes to provide without charge to each person,
including any beneficial owner, to whom a copy of the Prospectus has been
delivered, on the written request of any such person, a copy of any or all of
the documents referred to above which have been or may be incorporated by
reference in this Prospectus, other than exhibits to such documents. Written
requests for such copies should be directed to Corporate Secretary, Workforce
Systems Corp., 7777 Glades Road, Suite 211, Boca Raton, Florida 33434, Telephone
No. (561) 488-4802.
6
THE COMPANY
The Company was incorporated under the laws of the State of Florida on
August 17, 1992 under the name Wildflower Financial Corp. In July 1994,
following a change in control, the Company changed its name to Workforce Systems
Corp. The Company is a diversified holding company with subsidiaries involved in
manufacturing and industrial fabrication, employee staffing and consumer
products.
The Company's manufacturing division includes Industrial Fabrication &
Repair, Inc.("IFR"), founded in 1979 and now a subsidiary of the Company, which
provides machining, welding, speciality design and fabrications for custom
applications to clientele from various industries including paper, steel mills,
rock quarry operations, coal mining applications and bottling facilities. IFR's
subsidiary Maintenance Requisition Order Corp. ("MRO") is an industrial supply
house representing several major lines of power transmission products, such as
gear boxes, bearings and couplings, which are commonly used in industrial
manufacturing and operating facilities. In May 1997 the manufacturing division
was further expanded through the acquisition of 100% of the issued and
outstanding stock of Federal Supply, Inc. and Federal Fabrication, Inc.
(collectively, "Federal"). Federal fabricates and distributes custom-designed
fire sprinkler systems and components.
The Company's staffing division includes American Industrial Management,
Inc. ("AIM"), founded in 1995 and now a subsidiary of the Company, and Outside
Industrial Services, Inc. ("OIS"), founded in 1982 and now a subsidiary of the
Company, both of which provide light industrial and light manufacturing staffing
on a contract basis to businesses.
The Company's consumer products division includes NHP Manufacturing Corp.
("NHP"), a subsidiary of the Company founded in 1994, which is the exclusive
manufacturer for the ThawMaster family of thawing trays and Products That
Produce, Inc. ("PTP"), a subsidiary of the Company founded in 1995, mission is
to identify and market new consumer products which are both innovative and
moderately priced. The first product undertaken by PTP is MR. FOOD'S ALLOFRESH.
The product is being marketed under endorsement by Art Ginsburg, the nationally
syndicated T.V. chef known as "Mr. Food". All natural, made from minerals,
non-toxic and environmentally safe, MR. FOOD'S ALLOFRESH works to prevent food
decay and eliminate bacteria, moisture, mold, mildew and odors in refrigerators,
the kitchen and around the house.
On September 22, 1997 the Company acquired 100% of the issued and
outstanding capital stock of LPS Acquisition Corp. ("LPS") in exchange for an
aggregate of 270,000 shares of the Company's restricted common stock from LPS'
shareholders in a private transaction exempt from registration under the
Securities Act of 1933, as amended, pursuant to Section 4(2) thereof. LPS, doing
business as Lantana Peat and Soil, is a distributor of high quality custom soil
mixes to wholesale nurseries throughout Florida. Annualized revenues are
currently estimated at $3 million.
7
The majority shareholder of LPS, owning approximately 85.2% of LPS, was
Darren Apel, a non-affiliate of the Company. Minority shareholders in LPS, each
owning approximately 7.4% of the issued and outstanding stock, were Barbara
Hausman, wife of Robert Hausman who is Chairman and President of the Company and
Ronna Newman Rutstein, wife of C. Lawrence Rutstein, who is a director of the
Company. Both Messrs. Hausman and Rutstein disclaim any ownership interest in
LPS by virtue of their spouses holdings.
The calculation of the consideration paid by the Company in the
acquisition of LPS was based upon was based upon a percentage of the significant
revenue base of LPS of approximately $3 million on an annualized basis. Pursuant
to the terms of the agreement for the acquisition of LPS, the sellers are
required to deliver to the Company a fairness opinion as to the amount of
consideration tendered by the Company in the share for share exchange. In the
event such fairness opinion does not support the exchange ratio, such exchange
ratio shall be adjusted by mutual agreement between the parties.
The Company's executive offices are located at 7777 Glades Road, Suite
211, Boca Raton, Florida, telephone 561-488-4802.
WORKFORCE SYSTEMS CORP. 1997 STOCK OPTION PLAN
INTRODUCTION
The following descriptions summarize certain provisions of the Plan and
the form of agreements to be entered into by recipients of options thereunder.
Such summaries do not purport to be complete and are qualified by reference to
the full text of the Plan and form of agreement. A copy of the Plan is on file
as an exhibit to the Registration Statement of which this Prospectus is a part.
Each person receiving an option under the Plan should read the Plan and related
option agreement in its entirety.
The Company's 1997 Stock Option Plan was adopted by the Board of Directors
on October 17, 1997 effective as of that date. Under the Plan, the Company has
reserved an aggregate of 1,000,000 shares of Common Stock for issuance pursuant
to options granted under the Plan ("Plan Options"). The purpose of the Plan is
to encourage stock ownership by officers, directors, key employees and
consultants of the Company, and to give such persons a greater personal interest
in the success of the Company's business and an added incentive to continue to
advance and contribute to the Company. The Board of Directors of the Company
will administer the Plan including, without limitation, the selection of the
persons who will be granted Plan Options under the Plan, the type of Plan
Options to be granted, the number of shares subject to each Plan Option and the
Plan Option price.
Plan Options granted under the Plan may either be options qualifying as
incentive stock options ("Incentive Options") under Section 422 of the Internal
Revenue Code of 1986, as amended, or options that do not so qualify
8
("Non-Qualified Options"). In addition, the Plan also allows for the inclusion
of a reload option provision ("Reload Option"), which permits an eligible person
to pay the exercise price of the Plan Option with shares of Common Stock owned
by the eligible person and receive a new Plan Option to purchase shares of
Common Stock equal in number to the tendered shares. As discussed hereafter, any
Incentive Option granted under the Plan must provide for an exercise price of
not less than 100% of the fair market value of the underlying shares on the date
of such grant, but the exercise price of any Incentive Option granted to an
eligible employee owning more than 10% of the outstanding Common Stock of the
Company must not be less than 110% of such fair market value as determined on
the date of the grant. The term of each Plan Option and the manner in which it
may be exercised is determined by the Board of Directors or the Committee,
provided that no Plan Option may be exercisable more than ten (10) years after
the date of its grant and, in the case of an Incentive Option granted to an
eligible employee owning more than 10% of the Common Stock, no more than five
(5) years after the date of the grant.
The Plan was authorized by the Board of Directors on October 17, 1997, and
the Company will be submitted for ratification by the stockholders of the
Company at the annual meeting of stockholders to be held on or before October
16, 1998.
ELIGIBILITY
Officers, directors, key employees and consultants of the Company and its
subsidiaries are eligible to receive Non-Qualified Options under the Workforce
Systems Corp. 1997 Stock Option Plan. Only officers, directors and employees of
the Company who are employed by the Company or by any subsidiary thereof are
eligible to receive Incentive Options.
ADMINISTRATION
The Plan will be administered by the Board of Directors. The Board of
Directors will determine from time to time those officers, directors, key
employees and consultants of the Company or any of its subsidiaries to whom Plan
Options are to be granted, the terms and provisions of the respective option
agreements, the time or times at which such Plan Options shall be granted, the
type of Plan Options to be granted, the dates such Plan Options become
exercisable, the number of shares subject to each Plan Option, the purchase
price of such shares and the form of payment of such purchase price. All other
questions relating to the administration of the Plan, and the interpretation of
the provisions thereof and of the related option agreements, are resolved by the
Board of Directors.
SHARES SUBJECT TO AWARDS
The Company has reserved 1,000,000 of its authorized but unissued shares
of Common Stock or shares maintained in the treasury of the Company for issuance
under the Plan, and a maximum of 1,000,000 shares may be issued thereunder. In
connection with the adoption and approval of the Plan, the Company's Board of
9
Directors resolved that the aggregate number of total shares of the Company's
Common Stock issuable under the Plan may not exceed 1,000,000 shares (subject to
adjustment in the event of certain changes in the Company's capitalization)
without further action by the Company's Board of Directors and stockholders, as
required. Except for such limitation on the aggregate number of shares issuable
under the Plan, there is no maximum or minimum number of shares of Common Stock
as to which a Plan Option may be granted to any person. Shares used for Plan
Options may be authorized and unissued shares or shares reacquired by the
Company, including shares purchased in the open market. Shares covered by Plan
Options which terminate unexercised will again become available for additional
Plan Options, without decreasing and maximum number of shares issuable under the
Plan, although such shares may also be used by the Company for other purposes.
The Plan provides that, if the Company's outstanding shares are increased,
decreased, exchanged or otherwise adjusted due to a share dividend, forward or
reverse share split, recapitalization, reorganization, merger, consolidation,
combination or exchange of shares, an appropriate and proportionate adjustment
shall be made in the number or kind of shares subject to the Plan or subject to
unexercised Plan Options and in the purchase price per share under such Plan
Options. Any adjustment, however, does not change the total purchase price
payable for the shares subject to outstanding Plan Options. In the event of the
proposed dissolution or liquidation of the Company, a proposed sale of all or
substantially all of the assets of the Company, a merger or tender offer for the
Company's shares of Common Stock, the Board of Directors may declare that each
Option granted under this Plan shall terminate as of a date to be fixed by the
Board of Directors; provided that not less than thirty (30) days written notice
of the date so fixed shall be given to each Eligible Person holding an Option,
and each such Eligible Person shall have the right, during the period of thirty
(30) days proceeding such termination, to exercise his Option as to all or any
part of the Shares, including shares of stock as to which such Option would not
otherwise be exercisable.
TERMS OF EXERCISE
The Plan provides that the Plan Options granted thereunder shall be
exercisable from time to time in whole or in part, unless otherwise specified in
the agreement representing the Plan Options or by the Board of Directors. Each
Plan Option may be exercised in whole or in part at any time during the period
from the date of the grant until the end of the period covered by the Plan
Option period.
The Plan provides that, with respect to Incentive Stock Options, the
aggregate fair market value (determined as of the time the option is granted) of
the shares of Common Stock, with respect to which Incentive Stock Options are
first exercisable by any option holder during any calendar year (including all
incentive stock option plans of the Company, any parent or any subsidiaries
which are qualified under Section 422 of the Internal Revenue Code of 1986)
shall not exceed $100,000.
10
EXERCISE PRICE
The purchase price for shares subject to Incentive Stock Options must be
at least 100% of the fair market value of the Company's Common Stock on the date
the option is granted, except that the purchase price must be at least 110% of
the fair market value in the case of an Incentive Stock Option granted to a
person who is a "10% stockholder." A "10% stockholder" is a person who owns
(within the meaning of Section 422(b)(6) of the Internal Revenue Code of 1986)
at the time the Incentive Stock Option is granted, shares possessing more than
10% of the total combined voting power of all classes of the outstanding shares
of the Company, any parent or any subsidiaries. The Plan provides that fair
market value shall be determined by the Board of Directors in accordance with
procedures which it may from time to time establish. If the purchase price is
paid with consideration other than cash, the Board of Directors shall determine
the fair value of such consideration to the Company in monetary terms.
The exercise price of Non-Qualified Options shall be determined by the
Board of Directors but be not less than the par value of one share of the
Company's Common Stock on the date the Option is granted.
The per share purchase price of shares subject to Plan Options granted
under the Plan may be adjusted in the event of certain changes in the Company's
capitalization, but any such adjustment shall not change the total purchase
price payable upon the exercise in full of Plan Options granted under the Plan.
MANNER OF EXERCISE
Plan Options are exercisable under the Plan by delivery of written notice
to the Company stating the number of shares with respect to which the Plan
Option is being exercised, together with full payment of the purchase price
therefor. Payment shall be in cash, checks, certified or bank cashier's checks,
promissory notes secured by the Shares issued through exercise of the related
Options, shares of Common Stock or in such other form or combination of forms
which shall be acceptable to the Board of Directors, provided that any loan or
guarantee by the Company of the purchase price may only be made upon resolution
of the Board that such loan or guarantee is reasonably expected to benefit the
Company.
OPTION PERIOD
All Incentive Stock Options shall expire on or before the tenth (10th)
anniversary of the date the option is granted except as limited above.
Non-Qualified Options shall expire ten (10) years and one (1) day from the date
of grant unless otherwise provided under the terms of the option grant.
TERMINATION
All Plan Options are nonassignable and nontransferable, except by will or
by the laws of descent and distribution, and during the lifetime of the
11
optionee, may be exercised only by such optionee. If an optionee's employment is
terminated for any reason, other than his death or disability or termination for
cause, or if an optionee is not an employee of the Company but is a member of
the Company's Board of Directors and his service as a director is terminated for
any reason, other than death or disability, the Plan Option granted to him shall
lapse to the extent unexercised on the earlier of the expiration date or 30 days
following the date of termination. If the optionee dies during the term of his
employment, the Plan Option granted to him shall lapse to the extent unexercised
on the earlier of the expiration date of the Plan Option or the date one year
following the date of the optionee's death. If the optionee is permanently and
totally disabled within the meaning of Section 22(c)(3) of the Internal Revenue
Code of 1986, the Plan Option granted to him lapses to the extent unexercised on
the earlier of the expiration date of the option or one year following the date
of such disability.
MODIFICATION AND TERMINATION OF PLANS
The Board of Directors may amend, suspend or terminate the Plan at any
time. However, no such action may prejudice the rights of any optionee who has
prior thereto been granted options under this Plan. Further, no amendment to
this Plan which has the effect of (a) increasing the aggregate number of Shares
subject to this Plan (except for adjustments due to changes in the Company's
capitalization), or (b) changing the definition of "Eligible Person" under this
Plan, may be effective unless and until approved by the stockholders of the
Company in the same manner as approval of this Plan is required. Any such
termination of the Plan shall not affect the validity of any Plan Options
previously granted thereunder. Unless the Plan shall theretofore have been
suspended or terminated by the Board of Directors, the Plan shall terminate on
October 16, 2007.
FEDERAL INCOME TAX EFFECTS
The following discussion applies to the Workforce Systems Corp. 1997 Stock
Option Plan and is based on federal income tax laws and regulations in effect on
March 31, 1997. It does not purport to be a complete description of the federal
income tax consequences of the Plan, nor does it describe the consequences of
state, local or foreign tax laws which may be applicable. Accordingly, any
person receiving a grant under the Plan should consult with his own tax adviser.
The Plan is not subject to the provisions of the Employee Retirement
Income Security Act of 1974 and is not qualified under Section 401(a) of the
Internal Revenue Code of 1986, as amended (the "Code").
An employee granted an Incentive Stock Option does not recognize taxable
income either at the date of grant or at the date of its timely exercise.
However, the excess of the fair market value of Common Stock received upon
exercise of the Incentive Stock Option over the Option exercise price is an item
of tax preference under Section 56(b)(3) of the Code and may be subject to the
alternative minimum tax imposed by Section 55 of the Code. Upon disposition of
stock acquired on exercise of an Incentive Stock Option, long-term capital gain
or loss is recognized in an amount equal to the difference between the sales
12
price and the Incentive Stock Option exercise price, provided that the option
holder has not disposed of the stock within two years from the date of grant or
within one year from the date of exercise, whatever is later. If the Incentive
Stock Option holder disposes of the acquired stock (including the transfer of
acquired stock in payment of the exercise price of an Incentive Stock Option)
without complying with both of these holding period requirements ("Disqualifying
Disposition"), the option holder will recognize ordinary income at the time of
such Disqualifying Disposition to the extent of the difference between the
exercise price and the lesser of the fair market value of the stock on the date
the Incentive Stock Option is exercised (the value six months after the date of
exercise may govern in the case of an employee whose sale of stock at a profit
could subject him to suit under Section 16(b) of the Securities Exchange Act of
1934) or the amount realized on such Disqualifying Disposition. Any remaining
gain or loss is treated as a short-term or long-term capital gain or loss,
depending on how long the shares are held. In the event of a Disqualifying
Disposition, the Incentive Stock Option tax preference described above may not
apply (although, where the Disqualifying Disposition occurs subsequent to the
year the Incentive Stock Option is exercised, it may be necessary for the
employee to amend his return to eliminate the tax preference item previously
reported). The Company and its subsidiary are not entitled to a tax deduction
upon either exercise of an Incentive Stock Option or disposition of stock
acquired pursuant to such an exercise, except to the extent that the Option
holder recognized ordinary income in a Disqualifying Disposition.
If the holder of an Incentive Stock Option pays the exercise price, in
full or in part, with shares of previously acquired Common Stock, the exchange
should not affect the Incentive Stock Option tax treatment of the exercise. No
gain or loss should be recognized on the exchange, and the shares received by
the employee, equal in number to the previously acquired shares exchanged
therefor, will have the same basis and holding period for long-term capital gain
purposes as the previously acquired shares. The employee will not, however, be
able to utilize the old holding period for the purpose of satisfying the
Incentive Stock Option statutory holding period requirements. Shares received in
excess of the number of previously acquired shares will have a basis of zero and
a holding period which commences as of the date the Common Stock is issued to
the employee upon exercise of the Incentive Stock Option. If an exercise is
effected using shares previously acquired through the exercise of an Incentive
Stock Option, the exchange of the previously acquired shares will be considered
a disposition of such shares for the purpose of determining whether a
Disqualifying Disposition has occurred.
In respect to the holder of Non-Qualified Options, the option holder does
not recognize taxable income on the date of the grant of the Non-Qualified
Option, unless the option has a readily ascertainable fair market value at the
time, but recognizes ordinary income generally at the date of exercise in the
amount of the difference between the option exercise price and the fair market
value of the Common Stock on the date of exercise. However, if the holder of
NonQualified Options is subject to the restrictions on resale of Common Stock
under Section 16 of the Securities Exchange Act of 1934, such person generally
recognizes ordinary income at the end of the six-month period following the date
of exercise in the amount of the difference between the option exercise price
and the fair market value of the Common Stock at the end of the six-month
period. Nevertheless, such holder may elect within 30 days after the date of
13
exercise to recognize ordinary income as of the date of exercise. The amount of
ordinary income recognized by the option holder is deductible by the Company in
the year that income is recognized.
RESTRICTIONS UNDER SECURITIES LAWS
The sale of the Shares must be made in compliance with federal and state
securities laws. Officers, directors and 10% or greater stockholders of the
Company, as well as certain other persons or parties who may be deemed to be
"affiliates" of the Company under the federal securities laws, should be aware
that resales by affiliates can only be made pursuant to an effective
Registration Statement, Rule 144 or any other applicable exemption. Officers,
directors and 10% and greater stockholders may also be subject to the "short
swing" profit rule of Section 16(b) of the Securities Exchange Act of 1934.
DESCRIPTION OF SECURITIES
Common Stock
The Company is authorized by its Articles of Incorporation to issue
25,000,000 shares of Common Stock, of which 2,583,346 were issued and
outstanding as of October 13, 1997. The holders of the Company's Common Stock
are entitled to receive dividends at such time and in such amounts as may be
determined by the Company's Board of Directors, and upon liquidation are
entitled to share ratably in the assets of the Company, subject to the rights of
the holders of any shares of preferred stock which may be outstanding, remaining
after the payment of all debts and other liabilities.
All shares of the Company's Common Stock have equal voting rights, each
share being entitled to one vote per share for the election of directors and all
other purposes. Holders of such Common Stock are not entitled to any preemptive
rights to purchase or subscribe for any of the Company's Securities. All of the
Company's Common Stock which is issued and outstanding is fully paid and
non-assessable. Stockholders, including the holders of any series of preferred
stock outstanding, do not have cumulative voting rights, which means that the
holders of more than 50% of the shares voting for the election of Directors are
able to elect 100% of the Company's Directors.
It is not contemplated that any dividends will be paid on the Common
Stock, and the future ability to pay dividends will be dependent upon the
success of the Company's operations and the decision by its Board of Directors
at that time.
Preferred Stock
The Company is authorize to issue 2,000,000 shares of preferred stock, par
value $.0001 per share, issuable in such series and bearing such voting,
dividend, conversion, liquidation and other rights and preferences as the Board
14
of Directors may determine. As of October 13, 1997 there are 30 shares of Series
A Preferred Stock, 30,000 shares of Series C Preferred Stock and 115,000 shares
of Series E Cumulative Non-Participating Preferred Stock issued and outstanding,
with 1,854,970 shares of preferred stock remaining without designation.
The designations, rights and preferences of the Series A Preferred Stock
provide that the shares (i) have full voting rights, share for share, with the
then outstanding Common Stock of the Company as well as any other series of
preferred stock then outstanding, (ii) are not convertible into any other class
of equity of the Company, (iii) are redeemable at any time at the Company's
option at par value of $.001 per share, (iv) pay dividends at the sole
discretion of the Company's Board of Directors, (v) are not transferrable
without the consent of the Company's Board of Directors and (vi) in the event of
a liquidation or winding up of the Company, carry a liquidation preference equal
to par value, without interest, and are junior in interest to the Series B
Preferred of the Company then outstanding. Such Series B Preferred has
subsequently been converted to Common Stock pursuant to its designations, rights
and preferences and the series has been retired.
The designations, rights and preferences of the Series C Preferred Stock
provide that the shares (i) have no voting rights, (ii) are not convertible into
any other class of equity of the Company, (iii) are redeemable at any time at
the Company's option at an amount equal to the prior year's annual dividend as
previously set by action of the Company's Board of Directors, (iv) pay dividends
at the sole discretion of the Company's Board of Directors, (v) are not
transferrable without the consent of the Company's Board of Directors and (vi)
in the event of a liquidation or winding up of the Company, carry a liquidation
preference equal to par value, without interest, and are junior in interest to
the Series B Preferred of the Company then outstanding. For the calendar years
of 1996 and 1997 the Board of Directors has determined that dividends, if any,
on the Series C Preferred Stock will be paid at its discretion. No dividends
were paid in the calendar year of 1996 and none have been declared, nor is it
anticipated any will be declared, during the calendar year of 1997.
Over-The-Counter Market
The Company's Common Stock is traded on the over-the-counter market on the
NASD OTC Bulletin Board under the symbol "WFSY."
Transfer Agent
The Company's transfer agent is Florida Atlantic Stock Transfer, Inc.,
5701 North Pine Island Road, Suite 325, Tamarac, Florida 33321.
LEGAL MATTERS
Certain legal matters in connection with the securities being offered
hereby will be passed upon for the Company by Atlas, Pearlman, Trop and Borkson,
P.A., 200 East Las Olas Boulevard, Suite 1900, Fort Lauderdale, Florida 33301.
Members of the firm are the owners of an aggregate of 7,488 shares of the
Company's Common Stock.
15
INDEMNIFICATION
The Articles of Incorporation of the Company provide indemnification of
directors and officers and other corporate agents to the fullest extent
permitted pursuant to the laws of Florida. The Articles of Incorporation also
limit the personal liability of the Company's directors to the fullest extent
permitted by the Florida Business Corporation Act. The Florida Business
Corporation Act contains provisions entitling directors and officers of the
Company to indemnification from judgments, fines, amounts paid in settlement and
reasonable expenses, including attorney's fees, as the result of an action or
proceeding in which they may be involved by reason of being or having been a
director or officers of the Company, provided said officers of directors acted
in good faith.
Insofar as indemnification for liabilities arising under the Act may be
permitted to directors, officers or persons controlling the Company pursuant to
the foregoing provisions, or otherwise, the Company has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is therefore unenforceable. In
the event that a claim for indemnification against such liabilities (other than
the payment by the Company of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the Company will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as express in the Act and will be
governed by the final adjudication of such issue.
16
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE
- ------- ---------------------------------------
The documents listed in (a) through (e) below are incorporated by
reference in the Registration Statement. All documents subsequently filed by the
Registrant pursuant to Section 13(a), 13(c), 14 and 15(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), prior to the filing of a
post-effective amendment which indicates that all securities offered have been
sold or which deregisters all securities then remaining unsold, shall be deemed
to be incorporated by reference in the Registration Statement and to be part
thereof from the date of filing of such documents.
(a) The Registrant's latest annual report or transitional report
filed pursuant to Section 13(a) or 15(d) of the Exchange Act, or, in the case of
the Registrant, either (1) the latest prospectus filed pursuant to Rule 424(b)
under the Securities Act of 1933, as amended (the "Act"), that contains audited
financial statements for the Registrant's latest fiscal year for which such
statements have been filed or (2) the Registrant's effective registration
statement on Form 10 or 30F filed under the Exchange Act containing audited
financial statements for the Registrant's latest fiscal year.
1. The Company's Annual Report on Form 10-KSB for the
fiscal year ended June 30, 1997.
(b) All other reports filed pursuant to Section 13(a) or 15(d) of
the Exchange Act since the end of the fiscal year covered by the Registrant's
document referred to in (a) above.
(c) The description of the Common Stock of the Company which is
contained in a Registration Statement filed under the Exchange Act, including
any amendment or report filed for the purpose of updating such description.
ITEM 4. DESCRIPTION OF SECURITIES
- ------- -------------------------
A description of the Registrant's securities is set forth in the
Prospectus incorporated as a part of this Registration Statement.
ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL
- ------- --------------------------------------
Not Applicable.
17
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS
- ------- -----------------------------------------
A description of the indemnification of the Registrant's officers
and directors is set forth above under the heading "Indemnification."
ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED
- ------- -----------------------------------
Not applicable.
ITEM 8. EXHIBITS
- ------- --------
Exhibit Description
- ------- -----------
4(a) Workforce Systems Corp. 1997 Stock Option Plan
4(b) Form of Stock Option Agreements to be issued pursuant to the
Workforce Systems Corp. 1997 Stock Option Plan
(5) Opinion of Atlas, Pearlman, Trop & Borkson, P.A. relating to the
issuance of shares of Common Stock pursuant to the Workforce Systems
Corp. 1997 Stock Option Plan
(24.1) Consent of Atlas, Pearlman, Trop & Borkson, P.A. included in the
opinion filed as exhibit (5) hereto
(24.2) Consent of BDO Seidman, LLP
ITEM 9. UNDERTAKINGS
- ------- ------------
(1) The undersigned Registrant hereby undertakes:
(a) To file, during any period in which offerings or sales are
being made, a post-effective amendment to this Registration Statement to include
any material information with respect to the plan of distribution not previously
disclosed in the Registration Statement or any material change to such
information in the Registration Statement;
(b) That, for the purposes of determining any liability under the
Act, each such post-effective amendment shall be deemed to be a new Registration
Statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof; and
(c) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
18
(2) The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Act, each filing of the Registrant's annual
report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and,
where applicable, each filing of an employee benefit plan's annual report
pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference
in the Registration Statement shall be deemed to be a new Registration Statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(3) Insofar as indemnification for liabilities arising under the Act may
be permitted to Directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission, such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a Director, officer of controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
Director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
19
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended,
the Registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form S-8 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Boca Raton and the State of Florida, on the 22nd
day of October, 1997.
Workforce Systems Corp.
By: /s/ Robert Hausman
--------------------------------
Robert Hausman,
Chairman of the Board,
Principal Executive Officer
and President
Pursuant to the requirements of the Securities Act of 1933, as amended,
this Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
SIGNATURE TITLE DATE
- --------- ----- ----
/s/ Robert Hausman President/Chairman October 22, 1997
- ------------------------------
Robert L. Hausman
/s/ Mark Weisz Director October 22, 1997
- ------------------------------
Mark Weisz
/s/ C. Lawrence Rutstein Director October 22, 1997
- ------------------------------
C. Lawrence Rutstein
/s/ Lester Gann Director October 22, 1997
- ------------------------------
Lester Gann
20
EXHIBIT INDEX
Workforce Systems Corp.
EXHIBIT
NUMBER DESCRIPTION PAGE
- ------ ----------- ----
4(a) Workforce Systems Corp. 1997 Stock Option Plan
4(b) Form of Stock Option Agreements to be issued
pursuant to the 1997 Stock Option Plan Company
(5) Opinion of Atlas, Pearlman, Trop & Borkson, P.A.
relating to the issuance of shares of Common Stock
pursuant to the 1997 Stock Option Plan
(24.1) Consent of Atlas, Pearlman, Trop & Borkson, P.A.
included in the opinion filed as exhibit (5) hereto
(24.2) Consent of BDO Seidman, LLP
21