U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-SB

GENERAL FORM FOR REGISTRATION OF SECURITIES
OF SMALL BUSINESS ISSUERS UNDER SECTION 12(b)
OR 12(g) OF THE SECURITIES ACT OF 1934

              RJV NETWORK, INC.            
(NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)

 

               NEVADA               

          91-2014084          

(STATE OR OTHER JURISDICTION OF

(I.R.S. EMPLOYER

INCORPORATION OR ORGANIZATION)

IDENTIFICATION NO.)

       

     15147 SE 46TH Way, Bellevue, WA     

     98006     

(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

(ZIP CODE)

               425-267-1194               
(ISSUER'S TELEPHONE NUMBER)

 


 

TABLE OF CONTENTS

 

ITEM

 

PART I

               General

 

               Forward Looking Statements

 

Item 1.    Description of Business

                     Business Development

                     Software Development

                     Internet Web Site Development

                     Marketing

                     Competition

                     Employees

                     Risk Factors

 

Item 2.    Management's Discussion and Analysis or Plan of Operation

                     Financial Condition

                     Results of Operations

                     Liquidity and Capital Resources

 

Item 3.    Description of Property

 

Item 4.    Security Ownership of Certain Beneficial Owners and Management

            

Item 5.    Directors, Executive Officers, Promoters, and Control Persons of the Company

 

Item 6.    Executive Compensation

 

Item 7.    Certain Relationships and Related Transactions

 

Item 8.    Description of Securities

                      Common Stock

                      Preferred Stock and Debt

 

PART II

 

Item 1.    Market Price of and Dividends on the Company's Common

                     Equity and Other Shareholder Matters

 

Item 2.    Legal Proceedings

 

Item 3.    Changes In and Disagreements with Accountants on

                      Accounting and Financial Disclosure

 

Item 4.    Recent Sales of Unregistered Securities

                      Washington State Registered Securities

 

Item 5.    Indemnification of Directors and Officers

 

PART F/S

     Financial Statements

           Year End December 31, 2000 Audited Statements

            Period Ended March 31, 2001 Management Prepared Statements

 

PART III

     Index to Exhibits

 

Signatures

 


 

PART I

General

        RJV Network, Inc. (the "Company") is filing this Form 10-SB registration statement on a voluntary basis and plans to continue filing interim and periodic reports as required under the Exchange Act of 1934, as amended ("Exchange Act"), in order to maintain compliance with the Security and Exchange Commission's (SEC) requirements to maintain the status of a reporting company. The Company intends to become a reporting company in order to list its securities for public trading on the Over-The-Counter (OTC) Electronic Bulletin Board. Under current National Association of Security Dealers (NASD) rules, in order for a company to become listed on the OTC Electronic Bulletin Board, it must be a reporting company under the Exchange Act.

Forward Looking Statements

        Certain information detailed within this registration statement is based on forward-looking statements. Generally, the words "anticipates," "believes," "expects," "intends," and similar expressions identify such forward-looking statements. Forward-looking statements typically involve risks and uncertainties, and the Company's actual results could differ materially from the results discussed in the forward-looking statements. Forward-looking statements are current only as of the date of this registration statement.

        All parties and individuals reviewing this registration statement and considering the Company as an investment should be aware of the financial risks involved with investing in a start-up company. When deciding whether to invest or not, careful consideration to the risk factors and forward-looking statements contained in this registration statement should be adhered to.

        It is especially important to keep these risk factors, which are detailed in Item 1 ("Risk Factors") of this registration statement, in mind when you read forward-looking statements. These are statements that relate to future periods and include statements about the Company's:

- expected operating results;
- expected market opportunities;
- anticipated revenue;
- ability to compete; and
- financial stability.

ITEM 1

DESCRIPTION OF THE BUSINESS

Business Development

        RJV Network, Inc. ("Company" "the Company") was organized under the laws of the State of Nevada on December 23, 1999. Other than a Registered Offering within the State of Washington, the Company has not conducted any material operations or generated any revenues to date. Since inception, the Company has been in the process of developing its business plan ("Plan" "plan" "the Plan" "the plan") and raising capital. The plan includes bringing to application an interactive commercial real estate Internet web site that will provide users with sophisticated value-added information relating to the buying, leasing, and selling of commercial real estate properties.

        Management is currently in the process of assessing the on- line commercial real estate marketplace, including but not limited to, the competition, current market trends, and current niches that the Company may capitalize upon. The key to the Company's success will be to take management's assessment of the marketplace and develop sophisticated software that can be readily accessed over the Internet and thereby provide customers commercial real estate solutions.

        To date, the software is in written outline form, no computer code has been written. If, and when, the development of the software is successfully completed, there can be no assurance or guarantee that the Company will be able to integrate the software with an interactive Internet web page that will appeal and attract users. If the Company cannot accomplish the above steps, the development of the Company would be adversely impacted and may ultimately prevent the Company from initiating revenue-generating operations.

        The plan for the software development and the Internet web site include the following:

Software Development

        The key to developing the software will be to differentiate the final product from the current competition by providing a higher level of key information for commercial real estate. It will also be critical for the software to easily allow the addition of new offerings that can be readily launched, enabling the Company to continually bring new products to the market to meet the changing needs within the marketplace. In doing so, the Company will focus on determining the specific functions of the software prior to beginning actual testing and marketing, as well as maintain a continued understanding of the market as it evolves.

        The necessary programming to develop a working software system that will allow a user to effectively search commercial properties and information regarding commercial real estate, as well as have the capabilities of adding future offerings, will be extensive and will likely require a third-party contractor to complete the development. Management plans to establish strategic relationship(s) and/or alliance(s) with various industry specialists and others that can test and market and/or use the software package when it comes out of beta testing and is ready for actual use. The specific costs associated with designing this type of software have not yet been determined by the Company. As previously detailed, the current status of development for the software is in outline written text form; no compiling of this outline has been converted to computer language.

        The Company feels that its software product, once developed, can be trademarked and/or copyright protected, although at the present time no assurance or guarantee can be made that the Company will be able to protect its software or other application technologies. Currently, the Company plans to rely on the common law copyright law to protect the proprietary nature of its specific concept. The Company plans to pursue formalizing trademark and/or copyright of the software when it is successfully developed and/or sufficient capital is available.

Internet Web Site Development

        The proposed Internet web site will be designed for users to obtain instant access to valuable commercial real estate information powered by the Company's software. The site will be targeted towards commercial real estate listing companies, real estate agents/brokers, individual property owners, and institutional investors. The site will allow the above- described clientele (or other interested parties) to input specific data into custom parameters that generates a sophisticated list of commercial properties, specific to the data they are looking for. Some of these parameters will include location, history of property, minimum/maximum purchase price, type of property such as medical, office, apartment, and retail, (etc.), size, tenant credit rating, and capitalization rate. With the individual parameters in place, an Internet "search" style process will then be initiated and compile a refined list of commercial properties that the user will be able to view in an effective manner. Along with specialized information, the site will also give the user access to general information related to commercial real estate including relevant historical, current, and projected market data such as interest rates, statistical analysis of the region the property is located in, including population, average rent/lease, occupancy, market size, and growth rates for the region.

        The Company plans to make the information on its proposed web site available on a membership basis. To date, the Company has not set the specific type of membership it will solicit, whether monthly/yearly or both, and/or what fees it will charge to access and/or input the information.

        There have been no bankruptcy, receivership or similar proceedings.

        There have been no material reclassifications, mergers, consolidations, or purchase or sale of a significant amount of assets not within the ordinary course of business.

        The above description of the business is based on forward thinking concepts and no assurance can be made that the Company will be able to realize its proposed business plan.

Marketing

        Prior to launching actual operations, the Company plans to develop and utilize a specific marketing strategy. The Company intends to market its commercial property listing web site by various means, including the Internet via advertising, e-mail opt-ins, and web-banners. Marketing will focus specifically on getting users to the Company's Internet site, once the potential user is at the site, the Company believes, the unique quality of commercial data available will appeal to the visitor and a significant percentage will likely become subscribers. The Company likely will offer "free memberships" for a short periods to first time users, as well as other promotional campaigns to expose the web site.

        The Company also plans to advertise through trade periodicals, journals, and possibly television, and radio media. In addition, the Company plans to implement direct marketing programs geared towards real estate agents, commercial property owners/investors, lenders, and institutional investors. At present, management has had preliminary talks and discussions with potential users and marketers involved in the commercial real estate industry. These discussions have provided management valuable information relating to the business development of the Company. The Company presently has no formal contracts with any of these users or marketers and no assurance can be given that any will develop. The Company will not pursue further negotiations with any of them until such time the Company has sufficient funding and is further in the process of developing its actual software program.

        The Company has no new product or service planned or planned to be announced to the public.

        The Company does not need governmental approval of its principal product. The Company's business is not subject to material regulation by federal, state, or local governmental agencies.

Competition

        The Company's competitors are substantially greater in size and financial strength than those of the Company. Competitors, such as Amrex Property Listing, Black's Guide, Commercial Property On-line, and LoopNet each have sites already established with a subscriber base similar to the one the Company is planning to bring to the market. Furthermore, additional competition may arise from real estate companies including Coldwell Banker, Prudential, Remax, and others that have Internet sites, or are in the process of establishing sites that will give users the capabilities to search commercial properties from their local, regional, and national listings.

        Each of the above listed competitors have broad-based search engines that provide access to raw data including listed property and/or commercial real estate statistics and facts. The Company intents to differentiate its web site from the competition by creating a software program that will harness the raw data into practical information and aid the user in the real estate decision making-process. The Company believes by providing value-added analysis of commercial properties and market data will give it an important competitive advantage in the marketplace.

        Based on management's current review of the competitors sites, none currently offers a sophisticated analysis that gives users decision making advise based on rational analysis of the commercial property in conjunction with current commercial real estate market data, which will be the targeted function of the Company's web site.

        Keeping in mind the associated risks of a start-up company and the above-described competition the Company is not aware of any significant hindrance to entering the on-line real estate listing market. However, given the size and complexity of the market, and difficulty in assessing the market's acceptance of the Company's proposed Internet site, it is difficult for the Company to estimate the percentage share of the market, if any, it will ultimately command.

Employees

        At present, the Company's only "employee" is its sole officer, Edward Velton. Currently, Mr. Velton is an independent contractor on a full-time basis with JSH Properties, Inc., a full-service commercial real estate company (See Item 1 "Risk Factors - Dependency on Current Management" and Item 5 "Directors, Executive Officers, Promoters, and Control Persons of the Company"). Conflicts may arise between the interests of the Company and other obligations Mr. Velton is currently responsible for. Mr. Velton has not committed a predetermined amount of time to devote to the furtherance of the Company, of which may have a negative impact on the progress of the Company's business.

Risk Factors

        The Company is in the development stages of business and plans to enter the commercial real estate marketplace using the Internet as a platform these factors subject the Company to many risks including:

                No Operating History with the Potential of Increased Expenses.

        The Company was organized in 1999, and has no operating history upon which an evaluation of its business and prospects can be based.

        There can be no assurance that the Company will be profitable on a quarterly or annual basis, if at all. In addition, as the Company expands its business network and marketing operations it will likely need to increase its operating expenses, broaden its customer support capabilities, and increase its administrative resources.

Need for Additional Financing.

        The Company will need to raise or find additional capital in order to establish operations. While the Company expects to be able to meet its financial obligations for approximately the next twelve months, there is no assurance after such period the Company will be operating profitably, if at all. Moreover, there can be no assurance that any required capital will be obtained on terms favorable to the Company. Failure to obtain adequate additional capital on favorable terms could result in significant delays in the expansion of new services and market share and could even result in the substantial curtailment of operations.

Unpredictability of Future Revenues; Potential Fluctuations in Quarterly Results.

        As a result of the Company's lack of operating history and the nature of the market in which it plans to compete, the Company is currently unable to forecast its revenues accurately. The Company's current and future expense levels are based largely on its investment/operating plans and estimates of future revenue are based on the Company's own estimates. Sales and operating results will generally depend on the volume of, timing of, and ability to obtain customers, orders for services received, and revenues therefrom generated. These are, by nature, difficult to forecast.

        The Company may be unable to adjust spending in a timely manner to compensate for any unexpected revenue shortfall or delay. Accordingly, any significant shortfall or delay in revenue in relation to the Company's planned expenditures would have an immediate adverse affect on the Company's business, financial condition, and results of operations. Further, in response to changes in the competitive environment, the Company may from time to time make certain pricing, service, or marketing decisions that could have a material adverse effect on the Company's business, financial condition, operating results, and cash flows.

Developing Market; Unproven Acceptance of the Internet as a Medium for Commerce.

        The Company's long-term viability is substantially dependent upon the continued widespread acceptance and use of the Internet as a medium for business commerce, in terms of the sales of both products and services to businesses and individuals. The use of the Internet as a means of business sales and commerce has only recently reached a point where a few companies are realizing profits from their endeavors therein, and there can be no assurance that this trend will continue in a positive direction.

        The Internet has experienced, and is expected to continue to experience, significant growth in the number of users and amount of traffic. There can be no assurance that the Internet infrastructure will continue to be able to support the demands placed on it by this continued growth. In addition, delays in the development or adoption of new standards and protocols to handle increased levels of Internet activity or increased governmental regulation could slow or stop the growth of the Internet as a viable medium for business commerce. Moreover, critical issues concerning the commercial use of the Internet (including security, reliability, accessibility, and quality of service) remain unresolved and may adversely affect the growth of Internet use or the attractiveness of its use for business commerce.

        The failure of the necessary infrastructure to further develop in a timely manner, or the failure of the Internet to continue to develop rapidly as a valid medium for business would have a material adverse effect on the Company's business, financial condition, operating results, and cash flows.

Unproven Acceptance of the Company's Services.

        The Company is still in its development stage. As a result, it does not know with any certainty whether its services will be accepted within the on-line commercial real estate marketplace. If the Company's services prove to be unsuccessful within the marketplace, or if the Company fails to attain market acceptance, it could materially adversely affect the Company's financial condition, operating results, and cash flows.

Dependency on Current Management.

        The Company's performance and operating results are substantially dependent on the continued service and performance of its sole officer. The Company intends to hire additional technical, sales, and other personnel as it moves forward with its proposed business plan, but competition for such personnel is intense, and there can be no assurance that the Company can retain its key technical employees, or that it will be able to attract or retain highly qualified technical and managerial personnel in the future. The loss of the services of any of the Company's key employees or the inability to attract and retain the necessary technical, sales, and other personnel could have a material adverse effect upon the Company's business, financial condition, operating results, and cash flows. The Company does not currently maintain "key man" insurance for any of its current management.

        The sole officer, Edward Velton, is currently employed at another company and plans to initially devote minimal time to promoting the Company's business plan. If other obligations take priority for the officer, it may have a material adverse impact on the progress of the Company. In addition, there has been, and are no plans for compensating the officer until sufficient revenue flow can be generated, of which, there is no guarantee. Therefore since the officer is being compensated by their employment elsewhere, he may be less motivated to spend adequate time promoting the Company.

Liability for Information Displayed on the Company's Internet Web Sites.

        The Company may be subjected to claims for defamation, negligence, copyright or trademark infringement, and various other claims relating to the nature and content of materials it publishes on its Internet Web site, or those set up for its clients. These types of claims have been brought, sometimes successfully, against online businesses in the past. The Company could also face claims based on the content that is accessible from its own, or its clients', Internet Web sites through links to other Web sites.

Reliance on Third Parties.

        The Company's future operations may depend, to a significant degree, on a number of third parties, including but not limited to Internet Service Provider's (ISP's) and communication companies. The Company has no effective control over these third parties and no contractual relationships with any of them. From time to time, the Company could experience temporary interruptions in their Internet Web-site connections and related communications access. Continuous or prolonged interruptions in the Internet Web-site connections or communications access would have a material adverse effect on the Company's business, financial condition, and results of operations. Most agreements with ISP's place certain limits on a company's ability to obtain damages from the service providers for failure to maintain the company's connection to the Internet.

Competition.

        The on-line commercial real estate market in which the Company plans to operate is very competitive. Many competitors have substantially greater, financial, technical, marketing, and distribution resources than the Company.

        The Company will compete against a large number of other companies varying in size and resources. There are an increasing number of competitive on-line services and products offered by a growing number of companies within the on-line commercial real estate marketplace. Increased competition in any service or product area may result in a loss of a client, reduction in sales revenue, or additional price competition, any of which could have a material adverse impact on the Company's operating results. In addition, existing competitors may continue to broaden their services and/or product lines and other potential competitors may enter or increase their market share, resulting in greater competition for the Company.

        Most, if not all, of the Company's current and potential competitors have substantially longer operating histories, larger customer bases, greater name and service recognition, and significantly greater financial, marketing, and other important resources than those of the Company. Furthermore, competitors may be acquired by, receive investments from, or enter into other commercial relationships with larger, well- established and well-financed companies as the use of the Internet and other online services increases. Many of the Company's competitors may be able to respond more quickly to changes in customer preferences/needs, devote greater resources to marketing and promotional campaigns, adopt more aggressive pricing policies, and devote substantially more resources to Internet site and systems development than the Company can.

        It is possible that new competitors or alliances among competitors may emerge and rapidly acquire market share. Increased competition could result in reduced operating margins and/or loss of market share, either of which could materially adversely impact the Company's business, results of operations, and financial condition. There can be no assurance that the Company will be able to compete successfully against current or future competitors or alliances of such competitors, or that competitive pressures faced by the Company will not materially effect its business, financial condition, operating results, and cash flows.

Risks of Potential Government Regulation and Other Legal Uncertainties Relating to the Internet.

        The Company is not currently subject to direct federal, state, or local regulation in the United States other than regulations applicable to businesses generally or directly applicable to electronic commerce. However, because the Internet is becoming increasingly popular, it is possible that a number of laws and regulations may be adopted with respect to the Internet. These laws may cover issues such as user privacy, freedom of expression, pricing, content, and quality of products and services, taxation, advertising, intellectual property rights and information security. Furthermore, the growth of electronic commerce may prompt calls for more stringent consumer protection laws. The adoption of such consumer protection laws could create uncertainty in Internet usage and reduce the demand for all products and services.

        In addition, the Company is not certain how its business may be affected by the application of existing laws governing issues such as property ownership, taxation, copyrights, encryption, and other intellectual property issues. It is possible that future applications of these laws may impact the Company's business reducing demand for its services or increase the cost of doing business as a result of litigation costs or increased service delivery costs.

        Because the Company's services will likely be available over the Internet in multiple states, and possibly foreign countries, other jurisdictions may claim that the Company is required to qualify to do business and pay taxes in each state. The Company's failure to qualify in other jurisdictions when it is required to do so could subject the Company to penalties and could restrict the Company's ability to enforce contracts in those jurisdictions. The application of laws or regulations from jurisdictions whose laws do not currently apply to the Company's business may have a material adverse impact on its business, results of operations, and financial condition.

Intellectual Property Rights.

        As part of its confidentiality procedures, the Company expects to enter into nondisclosure and confidentiality agreements with its key employees and any consultants and/or business partners and will limit access to and distribution of its technology, documentation, and other proprietary information.

        Despite the Company's efforts to protect any intellectual property rights it may have, unauthorized third parties, including competitors, from time to time copy or reverse- engineer certain portions of the Company's technology and use such information to create competitive services and/or products.

        It is possible that other parties, including competitors could challenge the scope, validity, and/or enforceability of the Company's intellectual property rights. The results of such challenges before administrative bodies or courts depend on many factors, which cannot be accurately assessed at this time. Unfavorable decisions by such administrative bodies or courts could have a negative impact on the Company's intellectual property rights. Any such challenges, whether with or without merit, could be time consuming, result in costly litigation and diversion of resources, and cause service or product delays. If such events should occur, the Company's business, operating results, and financial condition could be materially adversely affected.

Future Revenue May Depend on One, or a Few Customers.

        The Company has no current customers to date, but in the future a significant portion of its revenues may come from a small number of customers. If the Company should derive a significant amount of revenues from a single customer, or a small number of customers, loss of even a single customer would materially impact the revenues of the Company.

Rapid Changes in Technology and Distribution Channels Related to the Internet.

        The potential markets for the Company's Internet services and products are characterized by:

- rapidly changing technology;
- evolving industry standards;
- frequent new product and service introductions;
- shifting distribution channels; and
- changing customer demands.

        The Company's success will depend on its ability to adapt to this rapidly evolving marketplace. The Company may not be able to adequately adapt its products and services or acquire new products and services that can compete successfully within the marketplace. In addition, it may not be able to establish and maintain effective distribution channels.

Maintaining Positive Brand Name Awareness.

        Management believes that establishing and maintaining a brand name will be essential to the Company expanding its Internet business and attracting new customers to its site and that the importance of brand name recognition will increase in the future because of the growing number of Internet companies that will need to differentiate themselves. Promotion and enhancement of a potential brand name will depend largely on the Company's ability to provide consistently high-quality products and services. If it is unable to provide high-quality services, the value of its potential brand name may suffer.

Ownership of RJV Network, Inc. is Concentrated.

        Edward Velton, RJV Network's sole officer beneficially owned 62.1% of the Company's issued and outstanding common stock as of June 12, 2001. As a result, Mr. Velton possesses significant influence over the Company on matters including the election of directors. The concentration of RJV Network, Inc.'s share ownership may delay or prevent a change in control, impede a transaction involving the Company, or prevent adequate direction of the Company.

 

ITEM 2

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION

Financial Condition

        On December 23, 1999, Edward Velton purchased 50,000 common shares at a cost of $0.10 per share for total consideration of $5,000.

        From approximately October 10, 2000 to March 31, 2001 the Company sold 30,500 common shares to thirty-three (33) non- affiliated private investors and raised a total of $15,250. The Offering is a Registered Offering within the State of Washington pursuant to Rule 504 of Regulation D, and is open until October 10, 2001.

        It is management's opinion the Company's current cash is sufficient for the next twelve months.

        Management has determined additional capital will need to be raised in order to bring the Company's business plan to a level of operations and begin generating revenues. Management initially will seek to raise the additional capital through the sale of its own securities via the Washington State Registered Offering, which is open until October 10, 2001. The Company may raise an additional $34,750 via this Registered Offering. However, management feels it will need to raise approximately $225,000 to $375,000 above the current Offering amount to successfully implement the Company's strategic business plan. If the Company is unable to raise this additional funding it will have difficulty maintaining its going concern status.

        Management has forecasted the following steps and estimated the associated costs that must be achieved by the Company prior to its Internet site being ready for commercial utilization:

1.    Raise Additional Capital: Raise enough capital to fund the full development of the proposed software design and, set-up a web site, and market the Company's service. This may be accomplished through the sale of the Company's securities and/or through loans via venture capitalists/financial institutions. The time frame to initiate this step would likely be twelve to eighteen months. The associated costs with raising the capital will depend on what route the Company takes, whether it be a percent of the amount raised from stock or a loan that reflects a set interest rate.

2.    Software Program: Select a local programmer and develop/produce the information and decision process flow charts (estimated cost of $6,500 to $12,750), formalize and write the actual program code, test the code, and make any necessary modifications (estimated at $65,000), prepare and produce a beta test product and distribute for testing (estimated at $20,000) - time frame of twelve to eighteen months;

3.    Software Development: Collect, compile, and make the required beta test modifications to the program (estimated at $20,000), select software package manufacturer and begin production of the first batch of product (estimated at $50,000). Design Company web page on the Internet that will allow users to interact with the developed software (estimated at $5,500) - time frame of nine to twelve months following step (2).

        Once the web site is ready for commercial utilization, the following steps will need to be taken in order fully enter the market place and position the Company for long-term success:

1.    Regional/National Marketing: Organize an effective marketing campaign to expose the Company to the desired market by direct marketing within the greater Seattle area (estimated at $7,000). Contract the services of a sale representatives and/or and advertisement agency (estimated at $100,000) - time frame of three to six months following the above described step (3).

2.    Expand Market: Form strategic alliances and/or acquire companies that will promote long-term growth for the continued success of the Company (estimation is unable to be determined at this time) - time frame is currently unpredictable.

        Note: While these estimates are felt to be realistic and achievable by the Company, there can be no assurances that they will ultimately be achieved within the time frames specified. In addition, the above estimated costs associated with the development of the software and Internet site may be subject to change as no contracts have been negotiated by the Company with any potential supplier.

        During all phases of implementing the Company's strategic business plan there will be the risks as detailed within Item 1 ("Risk Factors") of this registration statement, including unforeseen risks that may include:

(1)   the Company's raising insufficient additional funding from the sale of its securities,

(2)   programming and testing shortfalls and difficulties and/or related cost overruns,

(3)   poor marketing results and/or market acceptance of the software package and,

(4)   related lack of revenues from the sales of the product. Without the ability to raise additional or sufficient capital to implement its business plan as presented.

        Management has not selected which company or companies will be performing the actual software programming and/or manufacturing. Once the business plan and marketing strategy is further developed the Company believes it will have no problems contracting a local programmer, as Seattle, and the surrounding area is host to many smaller independent programming companies such as Axis Software Design, Custom Software Design, and Designtime Software. In management's opinion contracting a smaller local firm that can offer a "turn-key" operation will help defer some of the costs associated with contracting a larger company or several smaller companies. At present, the Company has no formal contract(s) with any such firm or supplier(s) and will not initiate negotiations until such time as the Company has raised sufficient funding to pursue the actual programming. As of the date of this registration statement, the progress of the software has been limited to a written outline form with no actual computer code written.

        There are no current plans for product research and development. The Company has no current plans to purchase or sell any significant amount of fixed assets. There are no current plans to increase the number of employees within the next twelve months.

Results of Operations

        The Company currently has no direct or indirect operations. There were no revenues from sales for the year ended December 31, 2000. The Company sustained a net loss of $35 for the period ending December 31, 2000 and $230 for the period from December 23, 1999 to March 31, 2001. Losses were primarily attributed to expenditures for the start-up of the Company.

Liquidity and Capital Resources

        As of March 31, 2001, the Company had $ 19,970 cash on hand and in the bank. The anticipated expenses for the period ended April 30, 2001 are as follows:

(1) Accounting -          $ 3,500
(2) Licenses and fees - $   500
(3) Transfer Agent -     $   750

        The Company's current cash is positive and in management's opinion will be sufficient for the initial working capital of the Company. To date, the Company's only financial liability is a loan payable to a stockholder of the Company in the amount of $200.

 

ITEM 3

DESCRIPTION OF PROPERTY

        The President of the Company, at no cost, provides the Company's principal office address and telephone number. Management considers the Company's current principal office space arrangement adequate.

 

ITEM 4

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT

        The following table sets forth information on the ownership of the Company's voting securities by Officers, Directors, and major shareholders as well as those who own beneficially more than five percent of the Company's common stock through the most current date - June 20, 2001:

Title Of

Name &

Amount &

Percent

Class

Address

Nature of Owner

Owned

       

Common

Edward E. Velton

50,000 shares

62.1%

 

15147 SE 46TH Way

   
 

Bellevue, WA 98006

   

(a) Mr. Velton purchased shares of the Company's common stock in 1999 at a cost of $0.10 per share.

 

ITEM 5

DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS,
AND CONTROL PERSONS

        The Officer and Directors of the Company, whose terms will expire December 23, 2001 and July 7, 2001 respectively, or at such a time as their successor(s) shall be elected and qualified is as follows:

Name & Address

Age

Position

Date First Elected

       

Edward E. Velton

42

President,

December 23, 1999

15147 SE 46TH Way

 

Director

 

Bellevue, WA 98006

     
       

Rune Harkestad

37

Director

July 7, 2000

10655 NE 4TH Street

     

Suite 300

     

Bellevue, WA 98004

     
       

Michael J. McKinistry

54

Director

July 7, 2000

9106 N.E. 141ST Place

     

Bothell, WA 98001.

     

        Mr. Velton has had a broad range of experiences within the real estate business over the past five years, which include:

        JSH Properties, Inc., Licensed Real Estate Broker, 1999 to present. As an associated broker with JSH Properties, Mr. Velton is responsible for the marketing, sale, and management of several commercial properties including grocery stores, neighborhood centers, and single tenant retail properties.

        Greenfield Development, Chief Financial Officer, 1998-1999. Mr. Velton was responsible for this company's financial management, which included supervision of financial statement preparations, cash flow projections, cash planning, bank relations, partner coordination, and board presentations.

        Seattle First National Bank, Vice President, 1988-1998. Mr. Velton was the Senior Project Lending Officer/Team Marketing Manager coordinating the origination, evaluation, and management of construction and permanent loans for a variety of properties. Mr. Velton originated over $500,000,000+ loans with very low default and loss rates. Financed properties included over 4,000,000 square feet of retail projects, 3,000 apartment units, 3,000,000 square feet of office and industrial projects, and various other projects.

Education:

        Graduated May 1983 from the San Diego State University, with a MBA emphasizing corporate finance and real estate.

        Graduated December 1981 from the University of Nevada, with a BS in Business Administration, concentrating on corporate finance with a minor in economics

        The above officer and director of the Company may be considered a "promoter" of the Company, as that term is defined in the rules and regulations promulgated under the Securities and Exchange Act of 1933.

        Two independent Directors where elected on July 7, 2000. All material affiliated transactions shall be approved by the majority of RJV Networks, Inc.'s Directors, which include the listed independent Directors of whom shall not have a have an interest in the transaction. The independent Directors have access to, at RJV Networks, Inc.'s expense, independent legal counsel for material issues concerning the Company.

        Rune Harkestad. Mr. Harkestad is currently employed with JSH Properties, 10655 NE 4TH Street, Suite 300, Bellevue, WA 98004. His experience and knowledge within the commercial real estate industry will be an asset to shareholders in making important decisions that will effect the direction of the Company.

        Michael J. McKinistry - 9106 N.E. 141ST Place, Bothell, WA 98001. Mr. McKinistry is currently employed with National Mortgage Co., where he is Vice President of Financial Services. From 1991 to 1998, Mr. McKinistry served as Vice President of Financial Services for Kidder, Matthews, & Segner, Inc. Mr. McKinistry has been involved with real estate and real estate lending for the past twenty-four years, including the experience of running his own single family home development company.

        All directors hold office until the next annual meeting of stockholders and until their successors have been duly elected and qualified. There are no agreements with respect to the election the directors. The Company has not compensated its directors for service on the Board of Directors or committee thereof, but the directors are entitled to be reimbursed for expenses incurred for attendance at the meetings of the Board of Directors and any committee of the Board of Directors. However due to the Company's lack of funds and operations, the directors will defer their expenses and any compensation until such a time the Company is operating at a profit. Officers are appointed to serve until the meeting of the Board of Directors following the next annual meeting of stockholders and until their successors have been elected and qualified.

        No officer, director, affiliate, or promoter of the Company has filed any bankruptcy petition, been convicted in or been the subject of any pending criminal proceedings, or is any such person the subject or any order, judgement, or decree involving the violation of any state or federal securities law.

        No officer or director of the Company has been convicted in any criminal proceeding (excluding traffic violations) or is the subject of a criminal proceeding, which is currently pending.

 

ITEM 6

EXECUTIVE COMPENSATION

        The Company's sole officer has received none and currently receives no compensation. The Company has not had a bonus, profit sharing, or deferred compensation plan for the benefit of its officer or directors. The Company has not paid any salaries or other compensation to its officer or directors since inception. The Company has not entered into an employment agreement with its officer or directors, or any other persons, and no such agreements are anticipated in the immediate future. This period of no remuneration will continue until such time as the Company receives, and is generating sufficient revenues to provide a reasonable salary to its officer and compensation for director participation. The Company officer and its Board of Directors have the responsibility to determine the timing of remuneration based upon reasonable positive cash flow. At this time, management cannot accurately estimate if or when sufficient revenues will occur to implement this compensation.

        There are currently no annuity, pension, or retirement benefits and none are proposed to be paid to officers, directors, or employees of the Corporation in the event of retirement at normal retirement date pursuant to any presently existing plan provided or contributed to by the Company or any of its subsidiaries, if any.

 

ITEM 7

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

        Mr. Velton (Officer & Director) was issued 50,000 shares of the Company's common stock in 1999 at a cost of $0.10 per share.

 

ITEM 8

DESCRIPTION OF SECURITIES

Common Stock

        The Company's Certificate of Incorporation authorizes the issuance of 25,000,000 Shares of Common Stock, with a par value of $.001 per share, of which 80,500 shares are issued and outstanding as of the date hereof. All of the Common Stock have equal rights and are entitled to one vote for each share on all matters to be voted on by the stockholders. Holders of Common Stock do not have cumulative voting rights. Holders of shares of Common Stock are entitled to share ratable in dividends, if any, as may be declared, from time to time by the Board of Directors in its discretion from funds legally available therefor. In the event of a liquidation, dissolution, or winding up of the Company, the holders of shares of Common Stock are entitled to share pro-rata all assets remaining after payment in full of all liabilities. Holders of Common Stock have no preemptive or other subscription rights, and there are no conversion rights or redemption or sinking fund provisions with respect to such shares. All of the outstanding Common Stock is, and the shares offered by the Company pursuant to a future offering shall be, when issued and delivered, fully paid and non-assessable.

Preferred Stock and Debt

        The Company to date has not authorized the issuance of any preferred stock or debt securities.

 

PART II

ITEM 1

MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT'S COMMON
EQUITY AND OTHER SHAREHOLDER MATTERS

        As of the date of this filing, there is no public market for the Company's securities. As of June 19, 2001, the Company had thirty-four (34) shareholders of record. The Company has paid no cash dividends and has no outstanding options. The Company currently has no plans to register any of its securities under the Securities Act for sale by security holders. There is no public offering of equity and no proposed public offering of equity.

        The Company intends to file for trading on the Over-The- Counter (OTC) Electronic Bulletin Board, which is sponsored by the National Association of Securities Dealers (NASD). The OTC Electronic Bulletin Board is a network of security dealers who buy and sell stock. The dealers are connected by a computer network, which provides information on current "bids" and "asks" as well as volume information. As of the date of this filing the Company has not filed any such application with the OTC Electronic Bulletin Board and the Company cannot predict a timeframe when or if this may occur. In addition, the Company may file a 15c2-11 form to a sponsoring broker to be listed on the pink sheets, which is another quotation service that provide "bids" and "asks" for a company stock. Currently the Company has no sponsoring broker and has not filled out any such form.

        The Company's securities, when and if available for trading, will be subject to a Securities and Exchange Commission rule that imposes special sales practice requirements upon broker- dealers who sell such securities to persons other than established customers or accredited investors. For purposes of the rule, the phrase "accredited investors" means, in general terms, institutions with assets in excess of $5,000,000, or individuals having a net worth in excess of $1,000,000 or having an annual income that exceeds $200,000 (or that, when combined with a spouse's income, exceeds $300,000). For transactions covered by the rule, the broker-dealer must make a special suitability determination for the purchaser and receive the purchaser's written agreement to the transaction prior to the sale. Consequently, the rule may affect the ability of broker-dealers to sell the Company's securities and also may affect the ability of purchasers in this offering to sell their securities in any market that might develop therefor.

        In addition, the Securities and Exchange Commission has adopted a number of rules to regulate "penny stocks." Such rules include Rules 3a51-1, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, and 15g-7 under the Securities Exchange Act of 1934, as amended. Because the securities of the Company may constitute "penny stocks" within the meaning of the rules, the rules would apply to the Company and to its securities. The rules may further affect the ability of the Company's shareholders to sell their shares in any public market, which might develop.

        Shareholders and potential investors should be aware that, according to Securities and Exchange Commission Release No. 34- 29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (i) control of the market for the security by one or a few broker- dealers that are often related to the promoter or issuer; (ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (iii) "boiler room" practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (iv) excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and (v) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. The Company's management is aware of the abuses that have occurred historically in the penny stock market. Although the Company does not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to the Company's securities.

 

ITEM 2

LEGAL PROCEEDINGS

        The Company is not currently involved in any legal proceedings and is not aware of any pending or potential legal actions by or against the Company.

 

ITEM 3

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING CONTROL AND FINANCIAL DISCLOSURE

None.

 

ITEM 4

RECENT SALES OF UNREGISTERED SECURITIES

        On December 23, 1999, at an organizational meeting of the Board of Directors, the Board authorized the sale and issuance of fifty thousand (50,000) shares of common stock to the sole officer of the Company at cost of $0.10 per share. These fifty thousand shares are considered Rule 144 legend shares. All of the outstanding shares of common stock held by the present officer are "restricted securities" within the meaning of Rule 144 under the Securities Act of 1933, as amended. As restricted shares, these shares may be resold only pursuant to an effective registration statement or under the requirements of Rule 144 or other applicable exemptions from registration under the Act, and as required under applicable state securities laws. Rule 144 provides in essence that a person who has held restricted securities for a prescribed period may, under certain conditions, sell every three months, in brokerage transactions, a number of shares that does not exceed the greater of 1.0% of a company's outstanding common stock or the average weekly trading volume during the four calendar weeks prior to the sale. There is no limit on the amount of restricted securities that may be sold by a non-affiliate after the owner has held the restricted securities for a period of at least two years. A sale under Rule 144 or under any other exemption from the Act, if available, or pursuant to subsequent registrations of shares of Common Stock of present stockholders, may have a depressive effect upon the price of the Common Stock in any market that may develop.

Washington State Registered Securities

        From the period from approximately October 10, 2000 through present, the Company has offered and sold a total of 30,500 shares of common stock, at a price of $.50 per share, to a total of thirty-three (33) non-affiliated private investors in the State of Washington. The Company registered for offering up to 100,000 common shares to be sold in the State of Washington by Registration by Qualification. The permit number for this Offering is 70011337 and the permit to sell the securities is effective from October 10, 2000 to October 10, 2001. The Company is permitted to sell the remaining 69,500 common shares at a price of $.50 per common share within the state of Washington. Each prospective investor was, and will be given, an offering memorandum that disclosed all material aspects of an investment in the Company. General advertisement or general solicitation did not accompany this offering. None of the shareholders hold greater than 5% of the outstanding shares of the Company. Each investor was either accredited as defined, or were "sophisticated" purchasers, having prior investment experience or education, and having adequate and reasonable opportunity and access to the Company's corporate information.

 

ITEM 5

INDEMNIFICATION OF DIRECTORS AND OFFICERS

        The Company's By-Laws provide that the Company must indemnify its officers and directors to the fullest extent permitted under current Nevada laws and/or acts against all liabilities incurred by reason of the fact that the person is or was a officer or director of the Company. The effect of these provisions is potentially to indemnify the Company's officers and directors from all cost and expenses in which they are involved by reason of their affiliation with the Company.

PART F/S

        The audited financial statements of the Company and related notes that are included in this registration statement, have been examined by Peterson Sullivan P.L.L.C., as of year end December 31, 2000, and have been so included in reliance upon the opinion of such accountants given upon their authority as an expert in auditing and accounting.

        The unaudited financial statements of the Company that are included in this registration statement have been prepared by management and are as of and for the period ended March 31, 2001.


PETERSON SULLIVAN P.L.L.C.
601 Union Street
Suite 2300
Seattle, Washington 98101
Phone (206) 382-7777

INDEPENDENT AUDITORS' REPORT

To the Board of Directors
and Shareholders
RJV Network, Inc.

We have audited the accompanying balance of RJV Network, Inc. (a development stage company) as of December 31, 2000, and the related statements of operations, shareholders' equity, and cash flows from the period December 23, 1999 (inception) to December 31, 2000. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of RJV Network, Inc. (a development stage company) as of December 31, 2000, and the results of its operations and its cash flows for the period from December 23, 1999 (inception) to December 31, 2000, in conformity with accounting principles generally accepted in the United States.

/S/ Peterson and Sullivan
Peterson Sullivan P.L.L.C.
Seattle, Washington
May 3, 2001


RJV Network, Inc.
(A Development Stage Company)

BALANCE SHEET
December 31, 2000 

ASSETS

 
   

Current Cash

 

     Cash

$       5,165 

 

========

   

LIABILITIES AND SHAREHOLDERS' EQUITY

 
   

Current Liabilities

 

     Due to Stockholder

$          200 

   

Shareholders' Equity

 

     Common Stock, $.001 par value; 25,000,000 common

 

       shares authorized, 50,000 shares issued and

 

       outstanding

50 

    Additional paid in capital

4,950 

    Deficit accumulated during the development stage

           (35)

        4,965 

$        5,165

========

The accompanying notes are an integral part of these financial statements

 


RJV NETWORK,INC.
(A Development Stage Company)

STATEMENT OF OPERATIONS
For the Period From December 23, 1999 (Date of Inception)
To December 31, 2000

Revenue

$            - 

   

General and administrative expenses

 

      Bank charges

            35 

   

Net loss for period

$        (35)

 

========

Basic and diluted loss per common share

$       (.00)

 

========

 The accompanying notes are an integral part of these financial statements

 


RJV Networks, INC.
(A Development Stage Company)

STATEMENT OF SHAREHOLDERS' EQUITY
For the Period From December 23, 1999 (Date of Inception)
To December 31, 2000

 





Common Stock



Additional
Paid in
Capital

Deficit
Accumulate
During the
Development
Stage





Total

 

Shares

Amount

     

Balance,

         

    December 23, 1999

-

$        -

$           - 

    $         -  

$           -

           

Issuance of common

         

    stock, December

         

    31, 1999

50,000

$      50

4,950 

 

    5,000

Net loss for period

             

             

                

         (35)

         (35)

Balance,

         

     December 31 2000

50,000

$      50

$    4,950 

  $    (35)  

$      (35)

 

======

======

========

=======

=======

 

The accompanying notes are an integral part of these financial statements


 

RJV NETWORK,INC.
(A Development Stage Company)

STATEMENT OF CASH FLOWS
For the Period From December 23, 1999 (Date of Inception)
To December 31, 2000

 

Cash Flows From Operating Activities

 

      Net loss for period

$      (35)

   

Cash Flows From Financing Activities

 

      Issuance of common stock

5,000 

      Loan from shareholder

        200 

   

          Net cash flows provided by financing activities

     5,200 

   

Increase in Cash and Cash at December 31, 2000

$  5,165 

 

======

 


NOTES TO FINANCIAL STATEMENTS

Note 1.    The Company and Summary of Significant Accounting Policies

The Company

RJV Network, Inc. ("the Company), a development stage company, was incorporated under the laws of the State of Nevada on December 23, 1999, and began its development stage operations. The Company is involved in the development of internet-based listing site that will provide detail commercial real estate property listings and related data. The Company plans to generate revenues by selling one-time fee or subscription-based access to the web site to interested users of the information provided.

As indicated in the accompanying financial statements, the Company's accumulated deficit during the development stage totaled $35 for the period from December 23, 1999, date of inception, to December 31, 2000. The Company has financed this deficit through sales of the Company's stock.

The Company's successful attainment of profitable operations is dependent on future events, including obtaining additional financing to fulfill its development activities.

Cash

Cash consists of funds held in escrow account. This account is recorded at cost, which approximates fair value.

Due to Stockholder

The stockholder loan is unsecured, bears no interest and is due on demand.

Taxes on Income

The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for expected future tax consequences of events tat have been recognized by the Company's financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactment of changes in the tax laws or rates.

Software and Web Site Development Costs

The costs of computer software developed or obtained for internal use, during the preliminary project phase, as defined under Statement of Position 98-1 "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use", are expensed as incurred. The costs of web site development, during the planning stage, as defined under Emerging Issues Task Force No. 00-2 "Accounting for Web Site Development Costs" will be expensed as incurred.

Computer software and web site development costs incurred during the application and infrastructure development stage, including external direct costs of materials and services consumed in developing the software, creating graphics and web site content, payroll, and interest costs, will be capitalized and amortized over the estimated useful life, beginning when the software is ready use and after all substantial testing is completed and the web site is operational.

The Company did not incur any software development costs for the period from December 23, 1999, date of inception, to December 31, 2000.

Costs to be incurred when the web site and related software are in the operating stage will be expensed as incurred.

Earnings per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. There were no dilutive securities outstanding during the period December 23, 1999 to December 31, 2000.

Estimates

The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these financial statements and the reporting amounts of revenues and expenses during the period. Actual results could differ from these estimates.

Revenue Recognition

The Company intends to market access to its web site information. Revenue recognition policies for sales will be established when the terms for such sales are determined.

Note 2. Income Taxes

The Company is liable for taxes in the United States, As of December 31, 2000, the Company did not have any income for tax purposes and, therefore, no tax liability or expenses has been recorded in these financial statements .

The Company has tax losses of approximately $35 available to reduce future taxable income. The tax loss expires in 2020.

The deferred tax asset associated with the tax loss carryforward is approximately $12. The Company has provided a full valuation allowance against the deferred tax asset.

Note 3. Subsequent Event

The Company had a private placement offering to raise capital to fund the development stage operations. The funds raised through this offering were held in trust by the Company's attorney until the required minimum was met. The total raised was $15,250, which was released to the Company in January 2001.

 


RJV NETWORKS, INC.
(A Development Stage Company)

FINANCIAL REPORT
*Management Prepared
MARCH 31, 2001

* Financial Statements compiled by Peterson Sullivan P.L.L.C. Seattle, Washington and prepared herein by management. The notes to the financial statements are management prepared.

FINANCIAL STATEMENTS

Balance Sheet
Statements of Operations
Statement of Shareholder' Equity
Statements of Cash Flows
Management Provided Notes to Financial Statements


RJV NETWORK, INC.
(A Development Stage Company)

BALANCE SHEET
March 31, 2001

 

ASSETS

 
   

Current Assets

 

     Cash

$     19,970 

 

========

   
   

LIABILITIES AND SHAREHOLDER EQUITY

 
   

Current Liabilities

 

      Due to shareholder

$          200 

   

Shareholders' Equity

 

     Common Stock, $$.001 par value; 25,000,000

 

         Common shares authorized, 80,500 shares

 

         Issued and outstanding

80 

      Additional paid-in capital

19,920 

      Deficit Accumulated during the development

 

           Stage

        (230)

 

      19,770 

 

$    19,970 

 

========

SEE NOTES TO FINANCIAL STATEMENTS


 

RJV NETWORK,INC.
(A Development Stage Company)

STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 2001
and the Period From December 23, 1999 (Date of Inception)
to March 31, 2001

Cumulative

 

During

Three Months

Development

Ended

Stage

March 31, 2001

     

Interest Income

$          31 

$             31 

     

General and administrative

   

   expenses

   

         Bank Charges

96 

61 

         Taxes and licenses

          165 

                165 

     

               Net Loss for period

$      (230)

$         (230)

========

==========

     

Basic and diluted loss

   

   Per common share

$      (0.00)

$         (0.00)

 

========

==========

Weighted average shares

   

   Outstanding

$    54,276 

$       72,000 

========

==========

     

SEE NOTES TO FINANCIAL STATEMENTS

 


RJV Networks, INC.
(A Development Stage Company)

STATEMENT OF SHAREHOLDERS' EQUITY
For the Three Months Ended March 31, 2001 and the
Period From December 23, 1999 (Date of Inception)
To March 31, 2001

 





Common Stock



Additional
Paid in
Capital

Deficit
Accumulate
During the
Development
Stage





Total

 

Shares

Amount

     

Balance,

         

    December 23, 1999

-

$        -

$          -

$           _ 

$           - 

           

Issuance of common

         

    stock, December

         

    31, 1999

50,000

$      50

4,950

 

5,000 

           

Net loss for period

     

(35)

(35)

 

________

______

________

________

________

Balance,

         

    December 31 2000

50,000

$      50

$    4,950

$        (35)

$        (35)

           

Issuance of common

         

    Stock January

         

    24, 2001

30,000

$     30

$  14,970

$              

$   15,000 

           

Net loss for the

         

    three months ended

         

    March 31, 2001

     

(195)

(195)

 

________

_____

________

________

________

Balance, March 31,

         

    2001

80,000 

$     80

$   19,920

$    (230)

19,770 

 

======

=====

=======

=======

=======

 

SEE NOTES TO FINANCIAL STATEMENTS


 

RJV NETWORK,INC.
(A Development Stage Company)

STATEMENT OF CASH FLOWS
For the Three Months Ended March 31, 2001
Period From December 23, 1999 (Date of Inception)
to March 31, 2001

 

Cumulative

 
 

During

Three Months

 

Development

Ended

 

Stage

March 31, 2001

     

Cash Flows From Operating Activities

   

     Net loss for period

$       (230)

$        (195)

     

Cash Flows From Financing Activities

   

     Issuance of common stock

20,000 

 

     Loan from shareholder

          200 

       15,000 

     

     Net cash flows provided by

   

          financing activities

     20,200 

        15,000 

     

Net increase in cash

     19,970 

       14,805 

Cash, beginning of period

              - 

         5,165 

Cash, end of period

$    19,970 

$   19,970 

 

========

========

SEE NOTES TO FINANCIAL STATEMENTS


 

RJV NETWORK, INC.
(A Development Stage Company)
Notes to Unaudited Financial Statements

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of RJV Network, Inc. have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. The results of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2000 included in the registration statements herein.

PART 1. FINANCIAL INFORMATION

Management's Plan of Operations

The Company maintains a cash balance of $19,970 as of March 31, 2001. The President has agreed to continue providing his services (excluding out of pocket expenses) and office space for the Company free of charge until such time as management can raise the funding necessary to further advance its business plan to the operational phase. In consideration of this, it is management's opinion, the Company's current cash situation is sufficient and adequate until additional capital can be raised to further implement the Company's business plan (the "Plan"). At present, the Company remains in its initial development stage. Over the past several months, the Company has been raising capital and assessing the different options and requirements for the development of its software and Internet Web Site.There are no current plans for product research and development. There are no current plans to purchase or sell any significant amount of fixed assets.

There are no current plans to increase the number of employees.

 


PART III

(b) Exhibits

Exhibit

 

Number

Description

___________

_____________________________________

3.i

Articles of Incorporation of the Registrant

3.ii

Bylaws of the Registrant

   

 


 

 

SIGNATURES

In accordance with Section 12 of the Securities and Exchange Act of 1934, the registrant caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

 

RJV Network, Inc.

   
   

Date June 18, 2001

By /s/ Edward Velton

 

Edward Velton,

 

President & Director

 

ARTICLES OF INCORPORATION
(Pursuant to NRS 78)

OF

RJV NETWORK, INC.

1.) Name of Corporation: RJV Network, Inc.
2.) Resident Agent Name and Street Address: Carson Register Agents, Inc., 200 North Stewart Street, Carson City, Nevada 89701.
3.) Shares: Number Shares with par value: 25,000,000. Par value $0.001. Number of shares without par value: 0.
4.) Governing Board: Shall be styled as Directors.

Names, Address, Number of Board of Directors: Edward E. Velton, 15147 SE 46TH Way, Bellevue, Washington 98006.

5.) Purpose: Internet Listing For Commercial Real Estate.
6.) Other Matters: None.
7.) Names Address and Signatures of Incorporators: Edward E. Velton, 15147 SE 46TH Way, Bellevue, Washington 98006.

Notary:

This Instrument was acknowledged before me on December 22, 1999 by Edward E. Velton.

/s/ Marie J. Finn
---------------------------------------
Marie J. Finn - Notary Public Signature

INCORPORATOR:

       /s/ Edward Velton

8.) Certificate of acceptance of Appointment of resident Agent:
I, Kimberly Terminel hereby accept appointment as Resident
Agent for the above named corporation. Carson registered
Agents, Inc.


Signature of Registered Agent         By:  /s/ "Kimberly Terminel"
                                          -----------------------
                                                Kimberly Terminel


Date 12-23-99


BYLAWS
OF
RJV NETWORK, INC.

ARTICLE 1.
OFFICERS

1.1 Business Office

The principal business office ("principal office") of the corporation shall be located at any place either within or without the state of Nevada as designated in the corporation's most current Annual Report filed with the Nevada Secretary of State. The corporation may have such other offices, either within or without the State of Nevada, as the Board of Directors may designate or as the business of the corporation may require from time to time. The corporation shall maintain at its principal office a copy of certain records, as specified in Section 2.14 of Article 2.

1.2 Registered Office

The registered office of the corporation shall be located within Nevada and may be, but need not be, identical with the principal office, provided the principal office is located within Nevada. The address of the registered office may be changed from time to time by the Board of Directors.

ARTICLE 2.
SHAREHOLDERS

2.1 Annual Shareholder Meeting

The annual meeting of the shareholders shall be held on the second Tuesday of January, each year, beginning in the year 2001, at the hour of 1 o'clock p.m., or at such other time on such other day within such month as shall be fixed by the Board of Directors, for the purpose of electing directors and for the transaction of such other business as may come before the meeting. If the day fixed for the annual meeting shall be a legal holiday in the State of Nevada, such meeting shall be held on the next succeeding business day.

If the election of directors shall not be held on the day designated herein for any annual meeting of the shareholders, or at nay subsequent continuation after adjournment thereof, the Board of Directors shall cause the election to be held at a special meeting of the shareholders as soon thereafter as convenient.

Special Shareholder Meetings

Special meetings of the shareholders, for any purpose or purposes described in the notice of meeting, may be called by the president, or by the Board of Directors, and shall be called by the president at the request of the holders of not less than one-tenth of all outstanding shares of the corporation entitled to vote on any issue at the meeting.

2.3 Place of Shareholder Meetings

The Board of Directors may designate any place, either within or without the State of Nevada, as the place for any annual or any special meeting of the shareholders, unless by written consent, which may be in the form of waivers of notice or otherwise, all shareholders entitled to vote at the meeting designate a different place, either within or without the State of Nevada, as the place for the holding of such meeting. If either the Board of Directors or unanimous action of the voting shareholders makes no designation, the place of meeting shall be the principal office of the corporation in the State of Nevada.

2.4 Notice of Shareholder Meetings

Required Notice. Written notice stating the place, day and hour of any annual or special shareholder meeting shall be delivered not less than 10 nor more than 60 days before the date of the meeting, either personally or by mail, by or at the direction of the president, the Board of Directors, or other persons calling the meeting, to each shareholder of record entitled to vote at such meeting and to any other shareholder entitled by the laws of the State of Nevada governing corporations (the "Act") or the Articles of Incorporation to receive notice of the meeting. Notice shall be deemed to be effective at the earlier of: (1) When deposited in the United States mail, addressed to the shareholder at his address as it appears on the stock transfer books of the corporation, with postage thereon prepaid; (2) on the date shown on the return receipt if sent by registered or certified mail, return receipt requested, and the receipt is signed by or on behalf of the addressee; (3) when received; or (4) 5 days after deposit in the United States mail, if mailed postpaid and correctly addressed to an address, provided in writing by the shareholder, which is different from that shown in the corporation's current record of shareholders.

Adjourned Meeting. If any shareholder meeting is adjourned to a different date, time, or place, notice need not be given of the new date, time, and place if the new date, time, and place is announced at the meeting before adjournment. But if a new record date for the adjourned meeting is, or must be fixed (see Section 2.5 of this Article 2) then notice must be given pursuant to the requirements of paragraph (a) of this Section 2.4, to those persons who are shareholders as of the new record date.

Waiver of Notice. A shareholder may waive notice of the meeting (or any notice required by the Act, Articles of Incorporation, or Bylaws), by a writing signed by the shareholder entitled to the notice, which is delivered to the corporation (either before or after the date and time stated in the notice) for inclusion in the minutes of filing with the corporate records.

A shareholder's attendance at a meeting:

Waives objection to lack of notice or defective notice of the meeting unless the shareholder, at the beginning of the meeting, objects to holding the meeting or transacting business at the meeting; and

Waives objection to consideration of a particular matter at the meeting that is not within the purpose or purposes described in the meeting notice, unless the shareholder objects to consideration of the matter when it is presented.

(d) Contents of Notice. The notice of each special shareholder meeting shall include a description of the purpose or purposes for which the meeting is called. Except as provided in this Section 2.4(d), or as provided in the corporation's articles, or otherwise in the Act, the notice of an annual shareholder meeting need not include a description of the purpose or purposes for which the meeting is called.

If a purpose of any shareholder meeting is to consider either: (1) a proposed amendment to the Articles of Incorporation (including any restated articles requiring shareholder approval); (2) a plan of merger or share exchange;
(3) the sale, lease, exchange or other disposition of all, or substantially all of the corporation's property; (4) the dissolution of the corporation; or (5) the removal of a director, the notice must so state and be accompanied by, respectively, a copy or summary of the: (a) articles of amendment; (b) plan of merger or share exchange; and (c) transaction for disposition of all, or substantially all, of the corporation's property. If the proposed corporate action creates dissenters' rights, as provided in the Act, the dissenters' rights, and must be accompanied by a copy of relevant provisions of the Act. If the corporation issues, or authorizes the issuance of shares for promissory notes or for promises to render services in the future, the corporation shall report in writing to all the shareholders the number of shares authorized or issued, and the consideration received with or before the notice of the next shareholder meeting. Likewise, if the corporation indemnifies or advances expenses to an officer or director, this shall be reported to all the shareholders with or before notice of the next shareholder meeting.

Fixing of Record Date

For the purpose of determining shareholders of any voting group entitled to notice of or to vote at any meeting of shareholders, or shareholders entitled to receive payment of any distribution or dividend, or in order to make a determination of shareholders for any other proper purpose, the Board of Directors may fix in advance a date as the record date. Such record date shall not be more than 70 days prior to the date on which the particular action requiring such determination of shareholders entitled to notice of, or to vote at a meeting of shareholders, or shareholders entitled to receive a share dividend or distribution. The record date for determination of such shareholders shall be at the close of business on:

With respect to an annual shareholder meeting or any special shareholder meeting called by the Board of Directors or any person specifically authorized by the Board of Directors or these Bylaws to call a meeting, the day before the first notice is given to shareholders;

With respect to a special shareholder meeting demanded by the shareholders, the date the first shareholder signs the demand;

With respect to the payment of a share dividend, the date Board of Directors authorizes the share dividend;

With respect to actions taken in writing without a meeting (pursuant to Article 2, Section 2.12, the first date any shareholder signs a consent; and

With respect to a distribution to shareholders, (other than one involving a repurchase or reacquisition of shares), the date the Board of Directors authorizes the distribution.

When a determination of shareholders entitled to vote at any meeting of shareholders has been made, as provided in this section, such determination shall apply to any adjournment thereof unless the Board of Directors fixes a new record date, which it must do if the meeting is adjourned to a date more than 120 days after the date fixed for the original meeting.

If no record date has been fixed, the record date shall be the date the written notice of the meeting is given to shareholders.

Shareholder List

The officer or agent having charge of the stock transfer books for shares of the corporation shall, at least ten (10) days before each meeting of shareholders, make a complete record of the shareholders entitled to vote at each meeting of shareholders, arranged in alphabetical order, with the address of and the number of shares held by each. The list must be arranged by class or series of shares. The shareholder list must be available for inspection by any shareholder, beginning two business days after notice of the meeting is given for which the list was prepared and continuing through the meeting. The list shall be available at the corporation's principal office or at a place in the city where the meeting is to be held, as set forth in the notice of meeting. A shareholder, his agent, or attorney is entitled, on written demand, to inspect and, subject to the requirements of Section 2.14 of this Article 2, to copy the list during regular business hours and at his expense, during the period it is available for inspection. The corporation shall maintain the shareholder list in written form or in another form capable of conversion into written form within a reasonable time.

2.7 Shareholder Quorum and Voting Requirements

A majority of the outstanding shares of the corporation entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of shareholders. If less than a majority of the outstanding shares are represented at a meeting, a majority of the shares so represented may adjourn the meeting from time to time without further notice. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified. The shareholders present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum.

Once a share is represented for any purpose at a meeting, it is deemed present for quorum purposes for the remainder of the meeting and for any adjournment of that meeting, unless a new record date is or must be set for that adjourned meeting.

If a quorum exists, a majority vote of those shares present and voting at a duly organized meeting shall suffice to defeat or enact any proposal unless the Statutes of the State of Nevada, the Articles of Incorporation or these Bylaws require a greater-than-majority vote, in which event the higher vote shall be required for the action to constitute the action of the corporation.

Increasing Either Quorum or Voting Requirements

For purposes of this Section 2.8, a "supermajority" quorum is a requirement that more than a majority of the votes of the voting group be present to constitute a quorum; and a "supermajority" voting requirement is any requirement that requires the vote of more than a majority of the affirmative votes of a voting group at a meeting.

The Shareholders, but only if specifically authorized to do so by the Articles of Incorporation, may adopt, amend, or delete a Bylaw which fixes a "supermajority" quorum or "supermajority" voting requirement.

The adoption or amendment of a Bylaw that adds, changes, or deletes a "supermajority" quorum or voting requirement for shareholders must meet the same quorum requirement and be adopted by the same vote required to take action under the quorum and voting requirement then if effect or proposed to be adopted, whichever is greater.

A Bylaw that fixes a supermajority quorum or voting requirement for shareholders may not be adopted, amended, or repealed by the Board of Directors.

Proxies

At all meetings of shareholders, a shareholder may vote in person, or vote by written proxy executed in writing by the shareholder or executed by his duly authorized attorney-in- fact. Such proxy shall be filed with the secretary of the corporation or other person authorized to tabulate votes before or at the time of the meeting. No Proxy shall be valid after eleven (11) months from the date of its execution unless otherwise specifically provided in the proxy or coupled with an interest.

Voting of Shares

Unless otherwise provided in the articles, each outstanding share entitled to vote shall be entitled to one vote upon each matter submitted to a vote at a meeting of shareholders.

Shares held by an administrator, executor, guardian or conservator may be voted by him, either in person or by proxy, without the transfer of such shares into his name. Shares standing in the name of a trustee may be voted by him, either in person or by proxy, but no trustee shall be entitled to vote shares held by him without transfer of such shares into his name.

Shares standing in the name of a receiver may be voted by such receiver, and shares held by or under the control of a receiver may be voted by such receiver without the transfer thereof into his name if authority to do so is contained in an appropriate order of the Court by which such receiver was appointed.

A shareholder whose shares are pledged shall be entitled to vote such shares until the shares are transferred into the name of the pledgee, and thereafter, the pledgee shall be entitled to vote the shares so transferred.

Shares of its own stock belonging to the corporation or held by it in a fiduciary capacity shall not be voted, directly or indirectly, at any meeting, and shall not be counted in determining the total number of outstanding shares at any given time.

Redeemable shares are not entitled to vote after notice of redemption is mailed to the holders and a sum sufficient to redeem the shares has been deposited with a bank, trust company, or other financial institution under an irrevocable obligation to pay the holders the redemption price on surrender of the shares

Corporation's Acceptance of Votes. If the name signed on a vote, consent, waiver, or proxy appointment corresponds to the name of a shareholder, the corporation, if acting in good faith, is entitled to accept the vote, consent, waiver, or proxy appointment and give it effect as the act of the shareholder.

If the name signed on a vote, consent, waiver, or proxy appointment does not correspond to the name of its shareholder, the corporation, if acting in good faith, is nevertheless entitled to accept the vote, consent, waiver, or proxy appointment and give it effect as the act of the shareholder if:

the shareholder is an entity, as defined in the Act, and the name signed purports to be that of an officer or agent of the entity;

the name signed purports to be that of an administrator, executor, guardian or conservator representing the shareholder and, if the corporation requests, evidence of fiduciary status acceptable to the corporation has been presented with respect to the vote, consent, waiver, or proxy appointment;

the name signed purports to be that of a receiver or trustee in bankruptcy of the shareholder and, if the corporation requests, evidence of this status acceptable to the corporation has been presented with respect to the vote, consent, waiver or proxy appointment;

the name signed purports to be that of a pledgee, beneficial owner, or attorney-in-fact of the shareholder and, if the corporation of the signatory's authority to sign for the shareholder has been presented with respect to the vote, consent, waiver, or proxy appointment; or

the shares are held in the name of two or more persons as co- tenants or fiduciaries and the name signed purports to be the name of at least one of the co-owners and the person signing appears to be acting on behalf of all the co-owners.

The corporation is entitled to reject a vote, consent, waiver, or proxy appointment if the secretary or other officer or agent authorized to tabulate votes, acting in good faith, has reasonable basis for doubt about the validity of the signature on it or about the signatory's authority to sign for the shareholder.

The corporation and its officer or agent who accepts or rejects a vote, consent, waiver, or proxy appointment in good faith and in accordance with the standards of this Section 2.11 are not liable in damages to the shareholder for the consequences of the acceptance or rejection.

Corporation action based on the acceptance or rejection of a vote, consent, waiver, or proxy appointment under this section is valid unless a court of competent jurisdiction determines otherwise.

Informal Action by Shareholders

Any action required or permitted to be taken at a meeting of the shareholders may be taken without a meeting if one or more written consents, setting forth the action so taken, shall be signed by shareholders holding a majority of the shares entitled to vote with respect to the subject matter thereof, unless a "supermajority" vote is required by these Bylaws, in which case a "supermajority" vote will be required. Such consent shall be delivered to the corporation secretary for inclusion in the minute book. Consent signed under this section has the effect of a vote at a meeting and may be described as such in any document.

Voting for Directors

Unless otherwise provided in the Articles of Incorporation, directors are elected by a plurality of the votes cast by the shares entitled to vote in the election at a meeting at which a quorum is present.

2.14 Shareholders' Rights to Inspect Corporate Records

Shareholders shall have the following rights regarding inspection of corporate records:

Minutes and Accounting Records - The corporation shall keep, as permanent records, minutes of all meetings of its shareholders and Board of Directors, a record of all actions taken by the shareholders or Board of Directors without a meeting, and a record of all actions taken by a committee of the Board of Directors in place of the Board of Directors on behalf of the corporation. The corporation shall maintain appropriate accounting records.

Absolute Inspection Rights of Records Required at Principal Office - If a shareholder gives the corporation written notice of his demand at least five business days before the date on which he wishes to inspect and copy, he, or his agent or attorney, has the right to inspect and copy, during regular business hours, any of the following records, all of which the corporation is required to keep at its principal office:

its Articles of Incorporation and all amendments to them currently in effect;

its Bylaws or restated Bylaws and all amendments to them currently in effect;

resolutions adopted by its Board of Directors creating one or more classes or series of shares, and fixing their relative rights, preferences and limitations, if shares issued pursuant to those resolutions are outstanding;

the minutes of all shareholders' meetings, and records of all action taken by shareholders without a meeting, for the past three years;

all written communications to shareholders within the past three years, including the financial statements furnished for the past three years to the shareholders;

a list of the names and business addresses of its current directors and officers; and

its most recent annual report delivered to the Nevada Secretary of State.

Conditional Inspection Right - In addition, if a shareholder gives the corporation a written demand, made in good faith and for a proper purpose, at least five business days before the date on which he wishes to inspect and copy, describes with reasonable particularity his purpose and the records he desires to inspect, and the records are directly connected to his purpose, a shareholder of a corporation, or his duly authorized agent or attorney, is entitled to inspect and copy, during regular business hours at a reasonable location specified by the corporation, any of the following records of the corporation:

excerpts from minutes of any meeting of the Board of Directors; records of any action of a committee of the Board of Directors on behalf of the corporation; minutes of any meeting of the shareholders; and records of action take by the shareholders or Board of Directors without a meeting, to the extent not subject to inspection under paragraph (a) of this Section 2.14;

accounting records of the corporation; and

the record of shareholders (compiled no earlier than the date of the shareholder's demand).

Copy Costs - The right to copy records includes, if reasonable, the right to receive copies made by photographic, xerographic, or other means. The corporation may impose a reasonable charge, to be paid by the shareholder on terms set by the corporation, covering the costs of labor and material incurred in making copies of any documents provided to the shareholder.

"Shareholder" Includes Beneficial Owner - For purposes of this
Section 2.14, the term "shareholder" shall include a beneficial owner whose shares are held in a voting trust or by a nominee on his behalf.

Financial Statements Shall Be Furnished to the Shareholders

The corporation shall furnish its shareholders annual financial statements, which may be consolidated or combined statements of the corporation and one or more of its subsidiaries, as appropriate, that include a balance sheet as of the end of the fiscal year, an income statement for that year, and a statement of changes in shareholders' equity for the year, unless that information appears elsewhere in the financial statements. If financial statements are prepared for the corporation on the basis of generally accepted accounting principles, the annual financial statements for the shareholders must also be prepared on that basis.

If the annual financial statements are reported upon by a public accountant, his report must accompany them. If not, the statements must be accompanied by a statement of the president or the person responsible for the corporation's accounting records:

stating his reasonable belief that the statements were prepared on the basis of generally accepted accounting principles and, if not, describing the basis of preparation; and

describing any respects in which the statements were not prepared on a basis of accounting consistent with statements prepared for the preceding year.

Corporation shall mail the annual financial statements to each shareholder within 120 days after the close of each fiscal year.

Thereafter, on written request from a shareholder that was not mailed the statements, the corporation shall mail him the latest financial statements.

Dissenters' Rights

Each shareholder shall have the right to dissent from and obtain payment for his shares when so authorized by the Act, Articles of Incorporation, the Bylaws, or a resolution of the Board of Directors.

Order of Business

The following order of business shall be observed at all meetings of the shareholders, as applicable and so far as practicable:

Calling the roll of officers and directors present and determining shareholder quorum requirements;

Reading, correcting and approving of minutes of previous meeting;

Reports of officers;

Reports of Committees;

Election of Directors;

Unfinished business;

New business; and

Adjournment.

ARTICLE 3.
BOARD OF DIRECTORS

General Powers

Unless the Articles of Incorporation have dispensed with or limited the authority of the Board of Directors by describing who will perform some or all of the duties of a Board of Directors, all corporate powers shall be exercised by or under the authority of, and the business and affairs of the corporation shall be managed under the direction of the Board of Directors.

Number, Tenure and Qualifications of Directors

Unless otherwise provided in the Articles of Incorporation, the authorized number of directors shall be neither less than 1 (minimum number) nor more than 9 (maximum number). The initial number of directors was established in the original Articles of Incorporation. The number of directors shall always be within the limits specified above, and as determined by resolution adopted by the Board of Directors. After any shares of this corporation are issued, neither the maximum nor minimum number of directors can be changed, nor can a fixed number be substituted for the maximum and minimum numbers, except by a duly adopted amendment to the Articles of Incorporation duly approved by a majority of the outstanding shares entitled to vote. Each director shall hold office until the next annual meeting of shareholders or until his successor shall have been elected and qualified, or until there is a decrease in the number of directors. Unless required by the Articles of Incorporation, directors do not need to be residents of Nevada or shareholders of the corporation.

Regular Meetings of the Board of Directors

A regular meeting of the Board of Directors shall be held without other notice than this Bylaw immediately after, and at the same place as, the annual meeting of shareholders. The Board of Directors may provide, by resolution, the time and place for the holding of additional regular meetings without other notice than such resolution. (If permitted by Section 3.7, any regular meeting may be held by telephone).

Special Meeting of the Board of Directors

Special meetings of the Board of Directors may be called by or at the request of the president or any one director. The person or persons authorized to call special meetings of the Board of Directors may fix any place, either within or without the State of Nevada, as the place for holding any special meeting of the Board of Directors or, if for holding any special meeting of the Board of Directors or, if permitted by
Section 3.7, any special meeting may be held by telephone.

Notice of, and Waiver of Notice of, Special Meetings of the Board of Directors

Unless the Articles of Incorporation provide for a longer or shorter period, notice of any special meeting of the Board of Directors shall be given at least two days prior thereto, either orally or in writing. If mailed, notice of any director meeting shall be deemed to be effective at the earlier of: (1) when received; (2) five days after deposited in the United States mail, addressed to the director's business office, with postage thereon prepaid; or (3) the date shown on the return receipt, if sent by registered or certified mail, return receipt requested, and the receipt is signed by or on behalf of the director. Notice may also be given by facsimile and, in such event, notice shall be deemed effective upon transmittal thereof to a facsimile number of a compatible facsimile machine at the director's business office. Any director may waive notice of any meeting. Except as otherwise provided herein, the waiver must be in writing, signed by the director entitled to the notice, and filed with the minutes or corporate records. The attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business and at the beginning of the meeting, or promptly upon his arrival, objects to holding the meeting or transacting business at the meeting, and does not thereafter vote for or assent to action taken at the meeting. Unless required by the Articles of Incorporation or the Act, neither the business to be transacted at, nor the purpose of, any special meeting of the Board of Directors need be specified in the notice or waiver of notice of such meeting.

Director Quorum

A majority of the number of directors fixed, pursuant to
Section 3.2 of this Article 3, shall constitute a quorum for the transaction of business at any meeting of the Board of Directors, unless the Articles of Incorporation or the Act require a greater number for a quorum.

Any amendment to this quorum requirement is subject to the provisions of Section 3.8 of this Article 3.

Once a quorum has been established at a duly organized meeting, the Board of Directors may continue to transact corporate business until adjournment, notwithstanding the withdrawal of enough directors to leave less than a quorum.

Actions By Directors

The act of the majority of the directors present at a meeting at which a quorum is present when the vote is taken shall be the act of the Board of Directors, unless the Articles of Incorporation or the Act require a greater percentage. Any amendment, which changes the number of directors needed to take action, is subject to the provisions of Section 3.8 of this Article 3.

Unless the Articles of Incorporation provide otherwise, any or all directors may participate in a regular or special meeting by, or conduct the meeting through the use of, any means of communication by which all directors participating may simultaneously hear each other during the meeting. Minutes of any such meeting shall be prepared and entered into the records of the corporation. A director participating in a meeting by this means is deemed to be present in person at the meeting.

A director who is present at a meeting of the Board of Directors or a committee of the Board of Directors when corporate action is taken is deemed to have assented to the action taken unless: (1) he objects at the beginning of the meeting, or promptly upon his arrival, to holding it or transacting business at the meeting; or (2) his dissent or abstention from the action taken is entered in the minutes of the meeting; or (3) he delivers written notice of his dissent or abstention to the presiding officer of the meeting before its adjournment or to the corporation within 24 hours after adjournment of the meeting. The right of dissent or abstention is not available to a director who votes in favor of the action taken.

3.8 Establishing a "Supermajority" Quorum or Voting Requirement for the Board of Directors

For purposes of this Section 3.8, a "supermajority" quorum is a requirement that more than a majority of the directors in office constitute a quorum; and a "supermajority" voting requirement is one which requires the vote of more than a majority of those directors present at a meeting at which a quorum is present to be the act of the directors.

A Bylaw that fixes a supermajority quorum or supermajority voting requirement may be amended or repealed:

if originally adopted by the shareholders, only by the shareholders (unless otherwise provided by the shareholders); or

if originally adopted by the Board of Directors, either by the shareholders or by the Board of Directors.

A Bylaw adopted or amended by the shareholders that fixes a supermajority quorum or supermajority voting requirement for the Board of Directors may provide that it ay be amended or repealed only by a specified vote of either the shareholders or the Board of Directors.

Subject to the provisions of the preceding paragraph, action by the Board of Directors to adopt, amend, or repeal a Bylaw that changes the quorum or voting requirements for the Board of Directors must meet the same quorum requirement and be adopted by the same vote required to take action under the quorum and voting requirement then in effect or proposed to be adopted, whichever is greater.

Director Action Without a Meeting

Unless the Articles of Incorporation provide otherwise, any action required or permitted to be taken by the Board of Directors at a meeting may be taken without a meeting if all the directors sign a written consent describing the action taken. Such consents shall be filed with the records of the corporation. Action taken by consent is effective when the last director signs the consent, unless the consent specifies a different effective date. A signed consent has the effect of a vote at a duly noticed and conducted meeting of the Board of Directors and may be described as such in any document.

Removal of Directors

The shareholders may remove one or more directors at a meeting called for that purpose if notice has been given that a purpose of the meeting is such removal. The removal may be with or without cause unless the Articles of Incorporation provide that directors may only be removed for cause. If cumulative voting is not authorized, a director may be removed only if the number of votes cast in favor of removal exceeds the number of votes cast against removal.

Board of Director Vacancies

Unless the Articles of Incorporation provide otherwise, if a vacancy occurs on the Board of Directors, excluding a vacancy resulting from an increase in the number of directors, the director(s) remaining in office shall fill the vacancy. If the directors remaining in office constitute fewer than a quorum of the Board of Directors, they may fill the vacancy by the affirmative vote of a majority of all the directors remaining in office.

If a vacancy results from an increase in the number of directors, only the shareholders may fill the vacancy.

A vacancy that will occur at a specific later date (by reason of a resignation effective at a later date) may be filled by the Board of Directors before the vacancy occurs, but the new director may not take office until the vacancy occurs.

The term of a director elected to fill a vacancy expires at the next shareholders' meeting at which directors are elected. However, if his term expires, he shall continue to serve until his successor is elected and qualifies or until there is a decrease in the number of directors.

Director Compensation

Unless otherwise provided in the Articles of Incorporation, by resolution of the Board of Directors, each director may be paid his expenses, if any, of attendance at each meeting of the Board of Directors, and may be paid a stated salary as director or a fixed sum for attendance at each meeting of the Board of Directors, or both. No such payment shall preclude any director from serving the corporation in any other capacity and receiving compensation therefor.

Director Committees

Creation of Committees. Unless the Articles of Incorporation provide otherwise, the Board of Directors may create one or more committees and appoint members of the Board of Directors to serve on them. Each committee must have two or more members, who serve at the pleasure of the Board of Directors.

Selection of Members. The creation of a committee and appointment of members to it must be approved by the greater of
(1) a majority of all the directors in office when the action is taken, or (2) the number of directors required by the Articles of Incorporation to take such action.

Required Procedures. Sections 3.4, 3.5, 3.6, 3.7, 3.8 and 3.9 of this Article 3 apply to committees and their members.

Authority. Unless limited by the Articles of Incorporation or the Act, each committee may exercise those aspects of the authority of the Board of Directors which the Board of Directors confers upon such committee in the resolution creating the committee. Provided, however, a committee may not:

authorizes distributions to shareholders;

approve or propose to shareholders any action that the Act requires be approved by shareholders;

fill vacancies on the Board of Directors or on any of its committees;

amend the Articles of Incorporation;

adopt, amend, or repeal Bylaws;

approve a plan of merger not requiring shareholder approval;

authorize or approve reacquisition of shares, except according to a formula or method prescribed by the Board of Directors; or

authorize or approve the issuance or sale, or contract for sale of shares, or determine the designation and relative rights, preferences, and limitations of a class or series of shares; except that the Board of Directors may authorize a committee to do so within limits specifically prescribed by the Board of Directors.

ARTICLE 4.
OFFICERS

Designation of Officers

The officers of the corporation shall be a president, a secretary, and a treasurer, each of whom shall be appointed by the Board of Directors. Such other officers and assistant officers as may be deemed necessary, the Board of Directors may appoint including any vice-presidents. The same individual may simultaneously hold more than one office in the corporation.

Appointment and Term of Office

The Board of Directors shall appoint the officers of the corporation for a term as determined by the Board of Directors. If no term is specified, they shall hold office until the first meeting of the directors held after the next annual meeting of shareholders. If the appointment of officers is not made at such meeting, such appointment shall be made as soon thereafter as is convenient. Each officer shall hold office until his successor has been duly appointed and qualified, until his death, or until he resigns or has been removed in the manner provided in Section 4.3 of this Article 4.

The designation of a specified term does not grant to the officer any contract rights, and the Board of Directors can remove the officer at any time prior to the termination of such term.

Appointment of an officer shall not of itself create any contract rights.

Removal of Officers

The Board of Directors may remove any officer at any time, with or without cause. Such removal shall be without prejudice to the contract rights, if any, of the person so removed.

President

The president shall be the principal executive officer of the corporation and, subject to the control of the Board of Directors, shall generally supervise and control all of the business and affairs of the corporation. He shall, when present, preside at all meetings of the shareholders. He may sign, with the secretary or any other proper officer of the corporation thereunto duly authorized by the Board of Directors, certificates for shares of the corporation and deeds, mortgages, bonds, contracts, or other instruments which the Board of Directors has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some other officer or agent of the corporation, or shall be required by law to be otherwise signed or executed. The president shall generally perform all duties incident to the office of president and such other duties as may be prescribed by the Board of Directors from time to time.

Vice-President

If appointed, in the absence of the president or in the event of the president's death, inability or refusal to act, the vice-president (or in the event there be more than one vice- president, the vice-presidents in the order designated at the time of their election, or in the absence of any designation, then in the order of their appointment) shall perform the duties of the president, and when so acting, shall have all the powers of and be subject to all the restrictions upon the president. If there is no vice-president, then the treasurer shall perform such duties of the president. Any vice-president may sign, with the secretary or an assistant secretary, certificates for shares of the corporation the issuance of which have been authorized by resolution of the Board of Directors. A vice-president shall perform such other duties as from time to time may be assigned to him by the president or by the Board of Directors.

Secretary

If appointed, the secretary shall (a) keep the minutes of the proceedings of the shareholders and of the Board of Directors in one or more books provided for that purpose; (b) see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law; (c) be custodian of the corporate records and of any seal of the corporation and, if there is a seal of the corporation, see that it is affixed to all documents, the execution of which on behalf of the corporation under its seal is duly authorized;
(d) when requested or required, authenticate any records of the corporation; (e) keep a register of the post office address of each shareholder, as provided to the secretary by the shareholders; (f) sign with the president, or vice-president, certificates for shares of the corporation, the issuance of which has been authorized by resolution of the Board of Directors; (g) have general charge of the stock transfer books of the corporation; and (h) generally perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to him by the president or by the Board of Directors.

Treasurer

If appointed, the treasurer shall (a) have charge and custody of and be responsible for all funds and securities of the corporation; (b) receive and give receipts for moneys due and payable to the corporation; (b) receive and give receipts for moneys due and payable to the corporation from any source whatsoever, and deposit all such moneys in the name of the corporation in such banks, trust companies, or other depositaries as may be selected by the Board of Directors; and
(c) generally perform all of the duties incident to the office of treasurer and such other duties as from time to time may be assigned to him by the president or by the Board of Directors.

If required by the Board of Directors, the treasurer shall give a bond for the faithful discharge of his duties in such sum and with such surety or sureties as the Board of Directors shall determine.

4.8 Assistant Secretaries and Assistant Treasurers

The assistant secretaries, when authorized by the Board of Directors, may sign with the president, or a vice-president, certificates for shares of the corporation, the issuance of which has been authorized by a resolution of the Board of Directors. The assistant treasurers shall respectively, if required by the Board of Directors, give bonds for the faithful discharge of their duties in such sums and with such sureties as the Board of Directors shall determine.

The assistant secretaries and assistant treasurers, generally, shall perform such duties as may be assigned to them by the secretary or the treasurer, respectively, or by the president or the Board of Directors.

Salaries

The salaries of the officers, if any, shall be fixed from time to time by the Board of Directors.

ARTICLE 5.
INDEMNIFICATION OF DIRECTORS, OFFICERS, AGENTS, AND EMPLOYEES

Indemnification of Officers, Directors, Employees and Agents

Unless otherwise provided in the Articles of Incorporation, the corporation shall indemnify any individual made a party to a proceeding because he is or was an officer, director, employee or agent of the corporation against liability incurred in the proceeding, all pursuant to and consistent with the provisions of NRS 78.751, as amended from time to time.

Advance Expenses for Officers and Directors

The expenses of officers and directors incurred in defending a civil or criminal action, suit or proceeding shall be paid by the corporation as they are incurred and in advance of the final deposition of the action, suit or proceeding, but only after receipt by the corporation of an undertaking by or on behalf of the officer or director on terms set by the Board of Directors, to repay the expenses advanced if it is ultimately determined by a court of competent jurisdiction that he is not entitled to be indemnified by the corporation.

Scope of Indemnification

The indemnification permitted herein is intended to be to the fullest extent permissible under the laws of the State of Nevada, and any amendments thereto.

ARTICLE 6.
CERTIFICATES FOR SHARES AND THEIR TRANSFER

Certificates for Shares

Content

Certificates representing shares of the corporation shall at minimum, state on their face the name of the issuing corporation; that the corporation is formed under the laws of the State of Nevada; the name of the person to whom issued; the certificate number; class and par value of shares; and the designation of the series, if any, the certificate represents. The form of the certificate shall be as determined by the Board of Directors. Such certificates shall be signed (either manually or by facsimile) by the president or a vice-president and by the secretary of an assistant secretary and may be sealed with a corporate seal or a facsimile thereof. Each certificate for shares shall be consecutively numbered or otherwise identified.

Legend as to Class or Series

If the corporation is authorized to issue different classes of shares or different series within a class, the designations, relative rights, preferences, and limitations applicable to each class and the variations in rights, preferences, and limitations determined for each series (and the authority of the Board of Directors to determine variations for future series) must be summarized on the front or back of the certificate indicating that the corporation will furnish the shareholder this information on request in writing and without charge.

Shareholder List

The name and address of the person to whom the shares are issued, with the number of shares and date of issue, shall be entered on the stock transfer books of the corporation.

Transferring Shares

All certificates surrendered to the corporation for transfer shall be canceled and no new certificate shall be issued until the former certificate for a like number of shares shall have been surrendered and canceled, except that in case of a lost, destroyed, or mutilated certificate, a new one may be issued therefore upon such terms as the Board of Directors may prescribe, including indemnification of the corporation and bond requirements.

Registration of the Transfer of Shares

Registration of the transfer of shares of the corporation shall be made only on the stock transfer books of the corporation. In order to register a transfer, the record owner shall surrender the share certificate to the corporation for cancellation, properly endorsed by the appropriate person or persons with reasonable assurances that the endorsements are genuine and effective. Unless the corporation has established a procedure by which a beneficial owner of shares held by a nominee is to be recognized by the corporation as the owner, the person in whose name shares stand on the books of the corporation shall be deemed by the corporation to be the owner thereof for all purposes.

Restrictions on Transfer of Shares Permitted

The Board of Directors may impose restrictions on the transfer or registration of transfer of shares, including any security convertible into, or carrying a right to subscribe for or acquire shares. A restriction does not affect shares issued before the restriction as adopted unless the holders of the shares are parties to the restriction agreement or voted in favor of the restriction.

A restriction on the transfer or registration of transfer of shares may be authorized:

to maintain the corporation's status when it is dependent on the number or identity of its shareholders;

to preserve exemptions under federal or state securities law; or

for any other reasonable purpose.

A restriction on the transfer or registration of transfer of shares may:

obligate the shareholder first to offer the corporation or other persons (separately, consecutively, or simultaneously) an opportunity to acquire the restricted shares;

obligate the corporation or other persons (separately, consecutively, or simultaneously) to acquire the restricted shares;

require the corporation, the holders of any class of its shares, or another person to approve the transfer of the restricted shares, if the requirement is not manifestly unreasonable; or

prohibit the transfer of the restricted shares to designated persons or classes of persons, if the prohibition is not manifestly unreasonable.

A restriction on the transfer or registration of transfer of shares is valid and enforceable against the holder or a transferee of the holder if the restriction is authorized by this Section 6.3 and its existence is noted conspicuously on the front or back of the certificate. Unless so noted, a restriction is not enforceable against a person without knowledge of the restriction.

Acquisition of Shares

The corporation may acquire its own shares and unless otherwise provided in the Articles of Incorporation, the shares so acquired constitute authorized but unissued shares.

If the Articles of Incorporation prohibit the reissue of shares acquired by the corporation, the number of authorized shares is reduced by the number of shares acquired, effective upon amendment of the Articles of Incorporation, which amendment shall be adopted by the shareholders, or the Board of Directors without shareholder action (if permitted by the Act). The amendment must be delivered to the Secretary of State and must set forth:

the name of the corporation;

the reduction in the number of authorized shares, itemized by class and series; and

the total number of authorized shares, itemized by class and series, remaining after reduction of the shares.

ARTICLE 7.
DISTRIBUTIONS

Distributions

The Board of Directors may authorize, and the corporation may make distributions (including dividends on its outstanding shares) in the manner and upon the terms and conditions provided by law.

ARTICLE 8.
CORPORATE SEAL

Corporate Seal

The Board of Directors may adopt a corporate seal which may be circular in form and have inscribed thereon any designation, including the name of the corporation, Nevada as the state of incorporation, and the words "Corporate Seal."

ARTICLE 9.
EMERGENCY BYLAWS

Emergency Bylaws

Unless the Articles of Incorporation provide otherwise, the following provisions shall be effective during an emergency, which is defined as a time when a quorum of the corporation's directors cannot be readily assembled because of some catastrophic event. During such emergency:

(a) Notice of Board Meetings

Any one member of the Board of Directors or any one of the following officers: president, any vice-president, secretary, or treasurer may call a meeting of the Board of Directors. Notice of such meeting need be given only to those directors whom it is practicable to reach, any may be given in any practical manner, including by publication and radio. Such notice shall be given at least six hours prior to commencement of the meeting.

(b) Temporary Directors and Quorum

One or more officers of the corporation present at the emergency board meeting, as is necessary to achieve a quorum, shall be considered to be directors for the meeting, and shall so serve in order of rank, and within the same rank, in order of seniority. In the event that less than a quorum (as determined by Section 3.6 of Article 3) of the directors are present (including any officers who are to serve as directors for the meeting), those directors present (including the officers serving as directors) shall constitute a quorum.

Actions Permitted To Be Taken

The Board of Directors, as constituted in paragraph (b), and after notice as set forth in paragraph (a), may:

Officers' Powers
Prescribe emergency powers to any officer of the corporation;

Delegation of Any Power
Delegate to any officer or director, any of the powers of the Board of Directors;

Lines of Succession
Designate lines of succession of officers and agents, in the event that any of them are unable to discharge their duties;

Relocate Principal Place of Business
Relocate the principal place of business, or designate successive or simultaneous principal places of business;

All Other Action
Take any other action, which is convenient, helpful, or necessary to carry on the business of the corporation.

ARTICLE 10.
AMENDMENTS

AMENDMENTS

The Board of Directors may amend or repeal the corporation's Bylaws unless:

the Articles of Incorporation or the Act reserve this power exclusively to the shareholders, in whole or part; or

the shareholders, in adopting, amending, or repealing a particular Bylaw, provide expressly that the Board of Directors may not amend or repeal that Bylaw; or

the Bylaw either establishes, amends or deletes a "supermajority" shareholder quorum or voting requirement, as defined in Section 2.8 of Article 2.

Any amendment which changes the voting or quorum requirement for the Board of Directors must comply with Section 3.8 of Article 3, and for the shareholders, must comply Section 2.8 of Article 2.

The corporation's shareholders may also amend or repeal the corporation's Bylaws at any meeting held pursuant to Article