As filed with the Securities and Exchange Commission on September 29, 2004
Reg.No. 33
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
___________________________________
AuGrid Corporation
(Exact name of registrant as specified in its charter)
Nevada 34-1878390
(State or other jurisdiction of (I.R.S. identification No.)
Employer incorporation or organization)
10777 Westheimer Road, Suite 1040
Houston, Texas 77042
Tel: (713) 532-2000
(Address of principal executive offices)
________________________________________________
ADVISORY AND CONSULTING AGREEMENTS
(Full title of plan)
________________________________
M.J. Shaheed
Chief Executive Officer
10777 Westheimer Road, Suite 1040
Houston, Texas 77042
(Name and address of agent for service)
Tel:(713) 532-2000
(Telephone number, including area code of agent for service)
Copy to:
Michael L. Corrigan, Esq.
7770 Regents Road #113-401
San Diego, CA 92122-1967
(858) 362-1440
CALCULATION OF REGISTRATION FEE
- ---------------------------------------------------------------------------------------------
Proposed Proposed
Title of securities Amount to be maximum maximum Amount of
to be registered Registered (1) offering price Aggregate offering Registration fee
per share Price (2)
- ---------------------------------------------------------------------------------------------
Common Stock 100,000,000 .00106 $ 106,000 $ 13.43
(par value .001)
- ---------------------------------------------------------------------------------------------
(1) Represents 100,000,000 shares of Common Stock to be issued as compensation
for services rendered.
(2) Estimated solely for the purpose of determining the amount of registration
fee and pursuant to Rules 457(c) and 457(h) of the General Rules and Regulations
under the Securities Act of 1933.
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1
The document(s) containing the information specified in Part I of Form S-8
will be sent or given to participating parties in accordance with Rule 428(b)(1)
promulgated by the Securities and Exchange Commission (the "Commission") under
the Securities Act of 1933, as amended (the "Act"). Such document(s) are not
being filed with the Commission pursuant to the introductory Note to Part 1 of
Form S-8, but constitute (along with the documents incorporated by reference to
the Registration Statement pursuant to Item 3 of Part II hereof) a prospectus
that meets the requirements of Section 10(a) of the Act.
Purposes:
The Common Stock will be issued by the Company pursuant to an agreement entered
into by the Company and approved by the Board of Directors of the Company (the
"Board of Directors"). The agreement is intended to provide a method whereby the
Company may be stimulated by the personal involvement of the Consultant in the
Company's business thereby advancing the interests of the Company, and all of
its shareholders.
Common Stock:
The Board has authorized the issuance of up to 100,000,000 shares of the Common
Stock to the Consultant upon effectiveness of the registration statement.
Consultants:
The Consultant has agreed to provide its expertise and advice to the Company on
a non-exclusive basis for the purpose of generally representing the Company with
respect to certain legal matters.
No Restrictions on Transfer
Upon the shares becoming "Earned" pursuant to the terms of Consultant's
engagement agreement, the Consultant will become the record and beneficial owner
of the shares of Common Stock upon issuance and delivery and is entitled to all
of the rights of ownership, including the right to vote any shares awarded and
to receive ordinary cash dividends on the Common Stock.
Tax Treatment to the Consultant
The Common Stock is not qualified under Section 401(a) of the Internal Revenue
Code. The Consultant, therefore, will be deemed for federal income tax purposes
to recognize ordinary income during the taxable year in which the first of the
following events occurs: (a) the shares become freely transferable, or (b) the
shares cease to be subject to a substantial risk of forfeiture. Accordingly, the
Consultant will receive compensation taxable at ordinary rates equal to the fair
market value of the shares on the date of receipt since there will be no
substantial risk of forfeiture or other restrictions on transfer. If, however,
the Consultant receives shares of common stock pursuant to the exercises of an
option or options at an exercise price below the fair market value of the shares
on the date of exercise, the difference between the exercise price and the fair
market value of the stock on the date of exercise will be deemed ordinary income
for federal tax purposes. The Consultant is urged to consult his tax advisor on
this matter. Further, if any recipient is an "affiliate", Section 16(b) of the
Exchange Act is applicable and will affect the issue of taxation.
Tax Treatment to the Company
The amount of income recognized by any recipient hereunder in accordance with
the foregoing discussion will be an expense deductible by the Company for
federal income tax purposes in the taxable year of the Company during which the
recipient recognizes income.
Restrictions of Resales
In the event that an affiliate of the Company acquires shares of Common Stock
hereunder, the affiliate will be subject to Section 16(b) of the Exchange Act.
Further, in the event that any affiliate acquiring shares hereunder has sold or
sells any shares of Common Stock in the six months preceding or following the
receipt of shares hereunder, any so called "profit", as computed under Section
16(b) of the Exchange Act, would be required to be disgorged from the recipient
to the Company. Services rendered have been recognized as valid consideration
for the "purchase" of shares in connection with the "profit" computation under
Section 16(b) of the Exchange Act. The Company has agreed that for the purpose
of any "profit" computation under 16(b) the price paid for the Common Stock
issued to affiliates is equal to the value of services rendered. Shares of
Common Stock acquired hereunder by persons other than affiliates are not subject
to Section 16(b) of the Exchange Act.
Item 2. Registrant Information
A copy of any document or part hereof incorporated by reference in this
Registration Statement but not delivered with this Prospectus or any document
required to be delivered pursuant to Rule 428(b) under the Securities Act will
be furnished without charge upon written or oral request.
Legal Opinions and Experts
Michael Corrigan has rendered an opinion on the validity of the securities being
registered.
The financial statements of AuGrid Corporation., by reference in the Company's
Annual Report (Form 10-KSB) for the period ended December 31, 2003, have been
audited by Henry L. Creel Co., Inc., as set forth in their report incorporated
herein by reference and are incorporated herein by reference reliance upon such
report given upon the authority of the firm as experts in auditing and
accounting.
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference.
The following documents are incorporated by reference in this registration
statement and are not required to be filed with this registration statement:
(a) Registrant's Annual Report on Form 10-KSB for the fiscal year
ended December 31, 2003, filed on April 14, 2004 pursuant to Section 15(d)
of the Securities Exchange Act of 1934, as amended.
(b) Registrant's quarterly reports on Form 10-QSB, for the fiscal
quarters ended June 30, 2004, March 31, 2004, and September 30, 2003 and
registrant's current reports on Form 8-K, pursuant to Section 15(d) of the
Securities Exchange Act of 1934, as amended.
All documents filed by the registrant pursuant to Sections 13(a), 13(c), 14
and 15(d) of the Securities Exchange Act of 1934 after the date of this
registration statement and prior to the filing of a post-effective amendment to
this registration statement which indicates that all securities offered
hereunder have been sold, or which deregisters all securities then remaining
unsold under this registration statement, shall be deemed to be incorporated by
reference in this registration statement and to be a part hereof from the date
of filing of such documents.
Item 4. Description of Securities.
Not applicable.
Item 5. Interest of Named Experts and Counsel.
Not applicable.
Item 6. Indemnification of Directors and Officers.
The Company's Bylaws provide that the Company shall indemnify its officers
and directors against all expenses and liabilities, including counsel fees,
reasonably incurred by or imposed upon an officer or director in connection with
any proceeding to which the officer or director may be made a party, or in which
the officer or director may become involved, by reason of being or having been
an officer or director of the Company or is or was serving at the Company's
request as a director, officer, employee or agent of the Company, partnership,
joint venture, trust or enterprise, or any settlement thereof, except in such
cases wherein the officer or director is adjudged guilty of willful misfeasance
or malfeasance in the performance of the officer's or director's duties. In the
event of a settlement, the indemnification only applies when the Company's Board
of Directors approves such settlement and reimbursement as being in the best
interests of the Company.
The Bylaws further provide that the Company will indemnify its officers and
Directors against expenses of a suit, litigation or other proceeding that is
specifically permissible under applicable law. Nevada law authorizes a
corporation to indemnify directors, officers, employees or agents of the
corporation in non-derivative suits if such party acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best interest of
the corporation and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful, as determined in
accordance with Nevada law.
The foregoing provisions affecting personal liability do not abrogate a
director's fiduciary duty to the Company and its shareholders, but eliminate
personal liability for monetary damages for breach of that duty. The provisions
do not, however, eliminate or limit the liability of a director for failing to
act in good faith, for engaging in intentional misconduct or knowingly violating
a law, for authorizing the illegal payment of a dividend or repurchase of stock,
for obtaining an improper personal benefit, for breaching a director's duty of
loyalty, which is generally described as the duty not to engage in any
transaction which involves a conflict between the interest of the Company and
those of the director, or for violations of the federal securities laws.
Moreover, they do not provide indemnification for liability arising out of
willful misconduct, fraud, or dishonesty, for "short-swing" profits violations
under the federal securities laws, for the receipt of illegal remuneration or if
the officer or director received a benefit in money, property or services to
which the officer or director is not legally entitled.
Item 7. Exemption from Registration Claimed.
Not applicable.
Item 8. Exhibits.
The Exhibits to this registration statement are listed in the index to Exhibits.
Item 9. Undertakings.
The undersigned registrant hereby undertakes:
1. To file, during the period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i) to include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective
amendment thereof), which, individually or in the aggregate, represent a
fundamental change in the information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume of securities
offered (if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement., and,
(iii) 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; provided,
however, that paragraphs (a) (1) (i) and (a) (1) (ii) do not apply if the
Registration Statement is on Form S-3, Form S-8 or Form F-3, and the information
required to be included in a post-effective amendment by those paragraphs is
contained in periodic reports filed with or furnished to the Commission by the
registrant pursuant to section 13 or section 15(d) of the Securities Exchange
Act of 1934 that are incorporated by reference in the registration statement.
2. That, for the purpose of determining any liability under the Securities
Act of 1933, 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.
3. 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.
4. The undersigned registrant hereby undertakes to deliver or cause to be
delivered with the prospectus, to each person to whom the prospectus is sent or
given, the latest annual report to security holders that is incorporated by
reference in the prospectus and furnished pursuant to and meeting the
requirements of Rule 14a-3 or Rule 14c-3 under the Securities Exchange Act of
1934; and, where interim financial information required to be presented by
Article 3 of Regulation S-X are not set forth in the prospectus, to deliver, or
cause to be delivered to each person to whom the prospectus is sent or given,
the latest quarterly report that is specifically incorporated by reference in
the prospectus to provide such interim financial information.
5. The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to section 13(a) or section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee pursuant to the plan's annual report pursuant to section 15(d) for the
Securities Exchange Act of 1934) 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.
6. Insofar as indemnification for liabilities arising under the Securities
Act of 1933 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 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 registrant will, unless in the opinion of 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.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, 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, whereunto duly
authorized, in Houston, Texas, on September 29, 2004.
AuGrid Corporation
/S/ MJ Shaheed
----------------------------------------------------
M.J. Shaheed, Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, the
registration statement has been signed by the following persons in the
capacities and on the dates indicated:
/S/ MJ Shaheed
----------------------------------------------------
M.J. Shaheed, Chief Executive Officer
Dated: September 29, 2004
INDEX TO EXHIBITS
EXHIBIT
NO. DESCRIPTION
- --- -----------
4.1 Consulting Agreement with FM Consulting Group, Inc.
5.1 Opinion of Counsel, Michael Corrigan
23.1 Consent of Henry L. Creel Co., Inc.
23.2 Consent of Michael L. Corrigan
(included in Exhibit 5.1)