SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
(Amendment No. )1)
Filed by the Registrant [X]
Filed by a Party other than Registrant [ ]
Check the appropriate box:
[ ][X] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
[X][ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to ss.240.14a-11(c) or ss.240.14a-12toss.240.14a-11(c) orss.240.14a-12
Gibbs Gonstruction,Construction, Inc.
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(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Acts Rules 14a-(6)(i)(1) and 0-11.
1. Title of each class of securities to which transaction applies.
2. Aggregate number of securities to which transaction applied:
3. Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
4. Proposed maximum aggregate value of transaction:
5. Total fee paid:
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-12(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, of the Form or Schedule and the date of its filing.
1)1. Amount Previously Paid.
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2)2. Form, Schedule or Registration Statement No.:
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3)3. Filing Party:
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4)4. Date Filed:
GIBBS CONSTRUCTION, INC.
1515 East Silver Springs Boulevard - Suite 118.4
Ocala, FL 34470
Facsimile (352) 502-4783
NOTICE OF ANNUALSPECIAL MEETING OF STOCKHOLDERS
To Be Held July 30, 1999
To the Stockholders of Gibbs Construction, Inc.January 25, 2007
TO THE STOCKHOLDERS OF GIBBS CONSTRUCTION, INC.:
NOTICE IS HEREBY GIVENNotice is hereby given that the Annuala Special Meeting of Stockholders of Gibbs
Construction, Inc., a Texas corporation (the "Company"), will be held on Friday,
July 30, 1999, beginning at 10:00 a.m., Dallas time, on Thursday,
January 25, 2007 at the Company's
headquarters, 1855 Wall Street, Garland,Richardson Renaissance Hotel, 900 E. Lookout Drive,
Richardson, TX 7504175082, for the following purposes:purposes (the "Proposed Amendments"):
1. To elect four directorsapprove an amendment to serve untilreorganize the next Annual Meeting of
Stockholderscapital structure of the
Company or until their respective successors are electedby amending the Company's Restated Certificate of
Incorporation which will (i) effect a one for eight reverse stock
split of our Common Stock; (ii) increase the number of authorized
shares from 15,000,000 to 150,000,000, changing the par value of the
Common Stock to $0.001 per share; and qualified;(iii) authorize 2,000,000
shares of preferred stock, par value $0.001 per share, granting the
directors the power to establish the rights, powers, and privileges
of a series of preferred stock.
2. To appoint independent auditorsapprove an amendment to the Company's Restated Certificate of
Incorporation to change the name of the Company for the fiscal year
1999; andto Acacia
Automotive, Inc.
3. To transact such other business as may properly come before the
meetingSpecial Meeting or at any adjournmentadjournments or postponements thereof.
The Board of Directors has fixed June 30, 1999,the close of business on December 29,
2006 as the record date for the determination of the stockholders entitled to
notice of, and to vote at, this
meeting. The listthe Special Meeting of stockholders entitled to vote will be available for
examination byStockholders and at any
stockholder atadjournments or postponements thereof.
By Order of the Company's executive offices at 1855 Wall
Street, Garland, TX 75041 for ten days prior to July 30, 1999.
You are cordially invited to attend the meeting in person, if possible.Board of Directors
/s/ Steven L. Sample
Steven L. Sample
Chief Executive Officer
Ocala, Florida
December _, 2006
YOUR VOTE IS IMPORTANT
If you do not expect to be present in person,attend the Special Meeting, or if you do plan
to attend but wish to vote by proxy, please complete, sign, date and
datereturn promptly the enclosed proxy and return itcard in the enclosed envelope, which requires no postage if
mailed in the United States. The proxy must be signed by all registered holders
exactly as the stock is registered. It will assist us in preparing for the
meeting if you will return your signed proxies promptly regardless of whether
you expect to attend in person or have many or few shares.
BY ORDER OF THE BOARD OF DIRECTORS
Garland, Texas
July 6, 1999
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IMPORTANT
As a stockholder, you are urged to complete and mail the proxy promptly
whether or not you plan to attend this Annual Meeting of Stockholders in person.
It is important that your shares be voted.
------------------------------------------------postage-paid
envelope.
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GIBBS CONSTRUCTION, INC.
1855 Wall Street, Garland, TX 75041`1515 East Silver Springs Boulevard - Suite 118.4
Ocala, FL 34470
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PROXY STATEMENT
ANNUAL- -------------------------------------------------------------------------------
SPECIAL MEETING OF STOCKHOLDERS
To Be Held July 30, 1999to be held on January 25, 2007
General
This Proxy Statement is being furnished to stockholdersthe holders of the common
stock, $0.01 par value per share (the "Common Stock") of Gibbs Construction,
Inc., a Texas corporation (the "Company" or "Gibbs"), in connection with the
solicitation by orderthe Company at the direction of the Board of Directors of
the Company of proxies to be votedfor use at the
Annuala Special Meeting of Stockholders of the Company to be held on July 30, 1999, and
is being mailed with proxies to such stockholders on or about July 6, 1999.
Proxies in the form enclosed, properly executed by stockholders and returned to
the Company, which are not revoked, will be votedJanuary 25,
2007 (the "Special Meeting") commencing at 10:00 a.m., at the meeting. The proxy may
be revokedRichardson
Renaissance Hotel, 900 E. Lookout Drive, Richardson, TX 75082, and at any
time before it is voted.adjournments or postponements thereof. The 1998 Annual Report of the Company covering the fiscal year ended
December 31, 1998, is being mailed herewithmatters to stockholders. It does not form
any part of the material for the solicitation of proxies.
OUTSTANDING CAPITAL STOCK
The record date for stockholders entitled to notice ofbe considered and to vote at the
Annual Meeting of Stockholders was the close business on June 30, 1999. At the
close of business on that date the Company had issued, outstanding and entitled
to voteacted
upon at the meeting 4,030,000 shares of Common Stock, par value $0.01 per
share (the "Common Stock").
QUORUM AND VOTINGare described below in this Proxy Statement.
The presence, in person or by proxy, of the holders of a majority of the
total combined voting power of the outstanding capital stock of the Company is
necessary to constitute a quorum at the Annual Meeting of Stockholders. In
deciding all questions, a holder of Common Stock shall be entitled to one vote,
in person or by proxy, for each share in the stockholder's name on the record
date. At the record date, the total number of votes which could be cast by all
holders of capital stock of the Company was 4,030,000.
ACTION TO BE TAKEN AT THE MEETING
The accompanying proxy, unless the stockholder specifies otherwise
therein, will be voted (i) FOR the election as directors of the Company of
persons named under the caption "Election of Directors"; (ii) FOR the Board of
Directors recommendation to appoint the accounting firm of Killman, Murrell &
Company, P.C., as the Company's independent auditors for the fiscal year ending
December 31, 1999; and (iv) in the discretion of the proxy holders on any other
matters that may properly come before the meeting or any adjournment thereof.
In order to be elected a director, a nominee must receive a plurality of
the votes cast at the meeting for the election of directors. To change the name
of the Corporation requires the majority of all shares outstanding. The approval
of Killman, Murrell & Company, P.C. as the independent auditors requires the
majority of all the shares outstanding. (see "Quorum and Voting").
When the giver of the proxy has appropriately specified how the proxy is
to be voted, it will be voted accordingly. Your attention is directed to the
accompanying proxy which provides a method for stockholders to withhold
authority to vote for one or more nominees for director and to vote against or
to abstain from voting on the other matters offered for approval. If any other
matter or business is brought before the meeting, a vote may be cast pursuant to
the accompanying proxy in accordance with the judgment of the person or persons
voting the share subject to the proxy, but management does not know of any such
other matter or business.
Should any nominee named herein for the office of director become unable
or unwilling to accept nomination or election, the person or persons acting
under the proxy will vote for the election in his place of such other person, if
any, as management may recommend; however, management has no reason to believe
that any of the nominees will be unable or unwilling to serve if elected. Each
nominee has expressed to management his intention that, if elected, he will
serve the entire term for which his election is sought.
ELECTION OF DIRECTORS
Directors of Texas corporations are to be elected at the meeting to hold
office until the next Annual Meeting of Stockholders or until their respective
successors are elected and qualified. It is intended that the shares, subject to
the proxies solicited hereby, will be voted for the following nominees, whose
age and position with the Company is indicated in the table, for director,
unless otherwise specified on the proxy:
Name Age Position
- ---- --- --------
Danny Gibbs 42 President, Director
Tony Gibbs 38 Vice-President, Director
Dennis T. Mitchell 49 Director
L.W. Reynolds 63 Director
Danny R. Gibbs and Tony G. Gibbs have served as directors of the Company
since 1984. Messrs. Mitchell has served since August of 1995 and Mr. Reynolds
became a director in May of 1998.
Danny R Gibbs has served as president, general manager and a director of
the Company since the Company's inception in 1984. Mr. Gibbs has acted as the
Company's Chief Financial Officer throughout the Company's existence. Mr. Gibbs
received a Bachelor of Arts degree in History with a minor in Architecture from
Texas Tech University.
Tony G. Gibbs has served as vice president and a director of the Company
since the Company's inception in 1984. From 1983 to 1984, Mr. Gibbs formed a
construction company which provided construction services to the residential
industry and the commercial industry. Mr. Gibbs received a Bachelor of Science
degree in Accounting with a minor in Architecture from Texas Tech University
Dennis T. Mitchell, a licensed professional architect, is president of
AIG, Inc., an architectural firm Mr. Mitchell formed in 1969 which is primarily
engaged in the design, documentation and execution of commercial construction.
AIG, Inc. provides architectural service to a variety of retail, industrial and
governmental entities, including Barnes & Noble, Lil' Things, and Eckerds. Mr.
Mitchell is a member of several national and local architectural professional
organizations and a graduate of the University of Texas at Arlington.
L. W. Reynolds is president of Reynolds Financial and Management Services,
Inc., a financial and management consulting firm that provides services to the
real estate, wholesale distribution, retail, environmental services, assisted
living and construction industries. Mr. Reynolds formed the firm in 1990. He is
also chairman of Elder Living Centers, Inc., a Company Mr. Reynolds formed in
1996 that develops and finances assisted living facilities in New Mexico and
Texas. Also in 1996, Mr. Reynolds formed Davis Covenant Corporation, a general
contractor engaged in the development of apartments and assisted living
facilities and asbestos statement. Mr. Reynolds, a certified public accountant,
worked for Peat Marwick Mitchell and Company from 1959 to 1966 and the Maloof
Companies from 1966 through 1984, becoming an Executive Vice President and Chief
Financial Officer in 1980. From 1984 to 1986, he was President and Chief
Executive Officer of American Federal Savings and Loan Association and from 1986
through 1989 was Vice President of Market Development for Public Service Company
of New Mexico. Mr. Reynolds is a graduate of McMurry University and holds a
Masters of Business Administration from the University of Texas at Austin.
Each director will hold office until the next Annual Meeting of
Stockholders and until such time as his successor is elected and qualified,
subject to prior removal by the stockholders of the Company in accordance with
the Bylaws of the Company. The officers of the Company serve at the discretion
of the Board of Directors of the Company.
The Board of Directors has fixed the number of directors at five. During
1998 the Company held one meeting of its Board of Directors. Each director,
attended at least 75% of the aggregate of these meetings. Recently the Company
appointed Messrs. Reynolds and Mitchell as members of its audit and compensation
committee. These committees have not yet met.
Section 16(A) Reporting
Section 16(a) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), requires the Company's directors,principal executive officers and
holders of more than 10% of the Company's Common Stock to file with the
Securities and Exchange Commission initial reports of ownership and reports of
changes in ownership of Common Stock and other equity securities of the Company.
This obligation did not arise until January 12, 1996, and arose in conjunction
with the Company's public offering of its securities. The initial report on Form
3 for the above referenced individuals was required to be filed by that date but
was not filed until the end of that month. Since that time, to the best
knowledge of the Company, its officers, directors and holders of more than 10%
of the Company's Common Stock complied with all Section 16(a) requirements.
Certain Beneficial Owners
The following table sets forth certain information regarding the
beneficial ownership of the Common Stock of the Company as of June 30, 1999, by
(i) each person known by the Company to be a beneficial owner of more than 5% of
the outstanding shares of Common Stock, (ii) each director of the Company, and
(iii) all directors and executive officers of the Company as a group. Unless
otherwise noted, each beneficial owner named below has sole investment and
voting power with respect to the Common Stock shown below as beneficially owned
by him.
Shares Owned
Name and Address of Number of Percent
Beneficial Owner Shares Owned Owned
- ---------------- ------------ -----
Danny Gibbs 1,000,000 24.8%
Tony Gibbs 1,000,000 24.8%
All directors and officers
as a group (4 persons) 2,000,000 49.5%
The address for Danny Gibbs and Tony Gibbs is 1855 Wall Street, Garland, TX
75041.
Compensation and Executive Officers
The Company's executive officers are Danny R. Gibbs and Tony G. Gibbs,
each having served as executive officers of the Company since 1985. Danny R.
Gibbs and Tony G. Gibbs are brothers.
The following table sets forth certain information concerning the
compensation of the chief executive officer of the Company and the other
executive officers of the Company whose total annual salary and bonus exceeded
$100,000, for the fiscal years ended December 31, 1998, 1997, and 1996.
Summary Compensation Table
Summary Compensation Table
Name and Annual Compensation (1) All Other
Principal Position Fiscal Year Salary Bonus (2) Compensation
- ------------------ ----------- ------ --------- ------------
Danny Gibbs 1998 $119,000 - -
Chief Executive Officer 1997 133,000 - -
1996 150,000 - -
Tony Gibbs 1998 $104,000 - -
Vice President 1997 123,000 - -
1996 150,000 - -
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(1) The Company provides certain perquisites and personal benefits to its
executive officers, the aggregate amount of which does not exceed $50,000 or 10%
of such officer's total annual salary and bonus.
(2) These amounts represent distributions to Messrs. Danny and Tony Gibbs in
connection with the Company's status as a subchapter S corporation pursuant to
the United States tax codes. They exclude amounts accrued in 1995 but paid in
1996 as part of the Company's termination of its subchapter S status. As of
December 31, 1997, $397,740 remained to be paid.
The Company plans to pay $150,000 per year to each of Messrs. Danny R.
Gibbs and Tony G. Gibbs. Directorsoffices of the Company are entitled to receive fromlocated at 1515 East
Silver Springs Boulevard - Suite 118.4, Ocala, FL 34470. The approximate mailing
date of this Proxy Statement and the Company fees and reimbursement of expenses for their services as directors.
Under the Company's standard arrangement for compensation of directors, outside
directors are entitled to receive a fee for each Board meeting attended of $500.
In addition, directors will be reimbursed for their ordinary and necessary
expenses incurred in attending meetings of the Board of Directors or a committee
thereof. Directors of the Company, whether or not employees of the Company, will
also be entitled to receive options to acquire shares of Common Stock under the
Company's Stock Option Plans. In connection with certain actions taken by the
Company, Messrs. Danny R. Gibbs and Tony G. Gibbs relinquished a total of
1,000,000 shares of Common Stock to the Company and acquired the right to
acquire for $0.10 per share 2,000,000 shares of stock if either Danny R. Gibbs
or Tony G. Gibbs are terminated without their consent if 20% of the Company is
acquired by those other than Danny R. Gibbs or Tony G. Gibbs. Dennis T. Mitchell
and L. W. Reynolds form the Company's Audit and Compensation Committees.
Certain Relationships and Related Transactions
As part of the termination of the Company's election to be taxed as a
Subchapter S Corporation, the Company has accrued $749,255 to be distributed to
Danny Gibbs and Tony Gibbs for payment of income taxes owed for the Company's
operations. At December 31, 1998, $397,740 remained to be paid.
In 1996 Messrs. Danny and Tony Gibbs formed a corporation that engages in
electrical contracting services. The Company paid this entity $2,068,365 and
$75,775 during the years ended December 31, 1998 and 1997, respectively. At
December 31, 1998, and 1997, the Company owed this related party $164,342 and
$53,412, respectively.
THE AFFIRMATIVE VOTE OF A MAJORITY OF THE OUTSTANDING SHARES OF COMMON
STOCK OF THE COMPANY IS REQUIRED TO ELECT A DIRECTOR. THE BOARD OF DIRECTORS
RECOMMENDS A VOTE "FOR" EACH OF THE INDIVIDUALS NAMED ABOVE. ALL PROXIES
SOLICITED BY THE BOARD OF DIRECTORS WILL BE VOTED IN ACCORDANCE WITH THE
SPECIFICATIONS ON THE FORM OF PROXY. WHERE NO SPCIFICATION IS MADE, PROXIES WILL
BE VOTED "FOR" EACH OF THE INDIVIDUALS NAMED ABOVE
APPOINTMENT OF INDEPENDENT AUDITORS
It is proposed that the firm of Killman, Murrell & Company, P.C. be
appointed as independent auditors of the Company for the fiscal year ending
December 31, 1999, upon approval by a majority of the stockholders present in
person or represented by proxy at the Annual Meeting of Stockholders. Killman,
Murrell & Company has served as the Company's independent auditors since the
fiscal year ending December 31, 1994. A representative of that firm is expected
to be present at the Annual Meeting of Stockholders. Said representative will be
available to answer questions and will be afforded an opportunity to make a
statement if he or she so desires.
THE AFFIRMATIVE VOTE OF A MAJORITY OF THE OUTSTANDING SHARES OF COMMON
STOCK OF THE COMPANY IS REQUIRED TO APPROVE AND APPOINT THE AUDITORS. THE BOARD
OF DIRECTORS RECOMMENDS A VOTE "FOR" THE APPROVAL OF THE APPOINTMENT OF THE
AUDITORS. ALL PROXIES SOLICITED BY THE BOARD OF DIRECTORS WILL BE VOTED IN
ACCORDANCE WITH THE SPECIFICATIONS ON THE FORM OF PROXY. WHERE NO SPECIFICATION
IS MADE, PROXIES WILL BE VOTED "FOR" THE APPROVAL OF THE AUDITORS.
STOCKHOLDER PROPOSALS
Any proposals from stockholders to be presented for consideration for
inclusion in the proxy material in connection with the next Annual Meeting of
Stockholders of the Company scheduled to be held in July of 2000 must be
submitted in accordance with the rules of the Securities and Exchange Commission
and received by the Secretary of the Company at the mailing address set forth
hereinafter no later than the close of business on March 6, 2000.
OTHER MATTERS
The accompanying proxy is being solicited on behalf of the Board of
Directors of the Company.____________, 2006.
The expense of preparing, printing, and mailing the form of proxy and the
material used in the solicitation thereof will be borne by the Company. In
additionaladdition to the use of the mails, proxies may be solicited by personal
interview, telephone, and telegram by directors, officers, and employees of the
Company. Arrangements have been made with brokerage houses and other custodians,
nominees, and fiduciaries for the forwarding of solicitation material to the
beneficial owners of stock held by record by such persons, and the Company will
reimburse them for reasonable out-of-pocket expenses incurred by them in
connection therewith.
AllVoting Rights and Votes Required
Only stockholders of record at the close of business on December 29, 2006
will be entitled to notice of, and to vote at, the Special Meeting. As of such
record date, the Company had outstanding 8,060,000 shares of Common Stock. Each
stockholder is entitled to one vote for each share of Common Stock held on the
matters to be considered at the Special Meeting. The holders of a majority of
the outstanding shares of Common Stock will constitute a quorum for the
transaction of business at the meeting. Shares of Common Stock present in
person, or represented by proxy (including shares of Common Stock, which abstain
or do not vote, with respect to one or more of the matters presented for
stockholder approval) will be counted for purposes of determining whether a
quorum exists at the meeting. If a broker or nominee holding stock in "street
name" indicates on the proxy that it does not have discretionary authority to
vote as to a matter, those shares of Common Stock will not be considered as
present and entitled to vote with respect to such matter.
The affirmative vote of the holders of the majority of shares of Common
Stock entitled to vote at the Special Meeting is required for the approval of
the proposals to amend the Restated Certificate of Incorporation of the Company.
Abstentions and "broker non-votes" will have the effect of a vote against the
proposed amendments. A "broker non-vote" occurs when a broker does not have
discretionary authority with respect to a particular proposal (i.e. it is not
considered "routine") and has not received instructions from the beneficial
owner of the shares. Generally, brokers have discretion to vote shares on what
are deemed to be "routine" matters, which, in most cases, include the approval
of reverse stock splits.
1
The accompanying proxy may be revoked at any time before it is exercised
by giving a later proxy, notifying the Secretary of the Company in writing, or
voting in person at the meeting.
STOCKHOLDERS OF THE COMPANY ARE REQUESTED TO COMPLETE, SIGN, DATE AND PROMPTLY
RETURN THE ACCOMPANYING PROXY CARD IN THE ENCLOSED POSTAGE-PREPAID ENVELOPE.
SHARES OF COMMON STOCK REPRESENTED BY A PROPERLY EXECUTED PROXY RECEIVED PRIOR
TO THE VOTE AT THE SPECIAL MEETING AND NOT REVOKED WILL BE VOTED AT THE SPECIAL
MEETING AS DIRECTED BY THE PROXY. IT IS NOT ANTICIPATED THAT ANY MATTERS OTHER
THAN THOSE SET FORTH IN THE PROXY STATEMENT WILL BE PRESENTED AT THE SPECIAL
MEETING. IF OTHER MATTERS ARE PRESENTED, PROXIES WILL BE VOTED IN ACCORDANCE
WITH THE DISCRETION OF THE PROXY HOLDERS.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth information contained in this Proxy Statement relatingabout the beneficial ownership
of our common stock as of December 29, 2006. The last two columns describe
shares assuming all stockholder resolutions described herein are adopted and
related plans implemented:
Percent Number Percent
of All of Shares of All
Number of Shares Outstanding of Common Outstanding
of Common Common Stock to Common Stock
Stock Owned(2) Stock Owned be Owned(1) to be Owned(2)
Beneficial Owner(1) (Pre-Split) (Pre-Split) (Post-Split) (Post-Split)
- ------------------- ------------------ --------------- ------------- -------------
Steven L. Sample 4,000,000 49.6% 9,142,500(3) 89.4%
1515 East Silver Springs Boulevard
Suite 118.4
Ocala, FL 34470
Danny R. Gibbs 500,000 6.2% 62,500 0.6%
1515 East Silver Springs Boulevard
Suite 118.4
Ocala, FL 34470
Linda M. Myers(4) - -% - -%
1515 East Silver Springs Boulevard
Suite 118.4
Ocala, FL 34470
L. Palmer Sample(5) 500,000 6.2% 62,500 0.6%
3922 SW 103rd Lane
Ocala, FL 34476
C. Scott Sample(5) 500,000 6.2% 62,500 0.6%
6280 Scottsville-Navilleton Road
Floyds Knobs, IN 47119
All executive officers and
directors as a group (two persons) 4,500,000 55.8% 9,25,000 90.0%
(1) The post-split shares assume ratification of Proposal No. 1 and
implementation of the director's resolution to issue shares following the
amendment. The amounts to be issued are 8,117,500 shares of Common Stock to be
issued on a post-split basis to Mr. Sample, 450,000 shares to be issued to the
occupation, affiliations,spouse of Ms. Myers on a post-split basis, and securities holdings100,000 shares of Common Stock on
a post-split basis to be issued to a previous creditor of the Company plus an
aggregate of 525,000 shares of preferred stock to be issued to Mr. Sample and
2
the spouse of Ms. Myers with Mr. Sample having the right to vote the shares to
be owned by the spouse of Ms Myers. With respect to the number of votes held by
Mr. Sample following the adoption of the proposals and the issuance of the
Common Stock and Preferred Stock as described herein, Mr. Sample's percentage
would increase to 34,867,500 votes or 97.1% of the total number of votes. This
total is based on the 500,000 shares of Common Stock Mr. Sample would own after
the effectiveness of the one for eight reverse split plus the 8,117,500 shares
of Common Stock and the voting rights for 525,000 shares of Common Stock Mr.
Sample to be issued to Mr. Sample in consideration of Company expenses paid by
Mr. Sample and upon the effectiveness of the capital restructuring described
under Proposal No. 1. See Footnote 3 to this table and Proposal No. 1.
(2) Reflects shares of Common Stock to be issued following the adoption of the
proposals set forth herein as well as Preferred Stock to be similarly issued,
said preferred stock indicated on an as converted basis. See General.
(3) The 9,142,500 is determined as follows: (i) the 4,000,000 shares of Common
Stock presently owned by Mr. Sample will become 500,000 shares of Common Stock
upon the effectiveness of the reverse stock split; (ii) upon the effectiveness
of Proposal No. 1, the Company will issue to Mr. Sample 8,117,500 shares of
Common Stock and 500,000 shares of preferred stock which are convertible into
500,000 shares of Common Stock; and (iii) Mr. Sample has a voting agreement for
25,000 shares of preferred stock to be owned under the same circumstances and
restrictions by the spouse of Ms. Myers. See "Proposal No. 1"
(4) Excludes 212,800 shares of Common Stock, 450,000 shares of Common Stock to
be issued following the adoption of these resolutions, and 25,000 shares of
preferred stock presently owned or to be owned by the spouse of Ms. Myers or her
spouse's affiliates as to which Ms. Myers denies beneficial ownership. With
respect to shares that will be issued to Mr. Sample and Ms. Myers's spouse or
her spouse's affiliates. See General.
(5) L. Palmer Sample and C. Scott Sample are the sons of Steven L. Sample.
DESCRIPTION OF CAPITAL STOCK
The Company's capital stock currently consists of 15,000,000 shares of
Common Stock, $0.01 par value per share, of which 8,060,000 shares were issued
and outstanding as of December 29, 2006. Although the bankruptcy court permitted
the Company to amend its articles of incorporation to issue 1,000,000 shares of
preferred stock to a creditor, that amendment was not filed with the Secretary
of State of Texas, and the creditor has agreed to accept 100,000 shares of
Common Stock on a post-split basis in lieu of said preferred stock.
Common Stock
Voting Rights. The holders of our common stock have one vote per share and are
not entitled to vote cumulatively for the election of directors. Generally, all
matters to be voted on by stockholders must be approved by a majority or, in the
case of election of directors, by plurality of the votes cast at a meeting at
which a quorum is present and voting together as a single class, subject to any
voting rights granted to the holders of any then outstanding preferred stock.
Dividends. Holders of common stock are entitled to receive any dividends
declared by our board of directors, subject to the preferential rights of any
preferred stock then outstanding. Dividends consisting of shares of common stock
may be paid to holders of shares of common stock.
Other Rights. Upon our liquidation, dissolution or winding up, the holders of
common stock are entitled preferential to share ratably in any assets available
for distribution to holders of shares of common stock. No holders of shares are
subject to redemption or have preemptive rights to purchase additional shares of
common stock.
Changes in Common Stock upon approval of the proposed restructuring. See
Proposal No. 1. The number of shares of Common Stock authorized will be
3
increased from 15,000,000 to 150,000,000 shares and the par value of the Common
Stock will be changed to $0.001 per share.
Preferred Stock
Preferred Stock arising from bankruptcy proceeding. The bankruptcy court
permitted the Company to amend its Certificate of Incorporation to authorize the
issuance of 1,000,000 shares of Preferred Stock, although this amendment was
never filed with the Secretary of State of Texas. Those provisions provided for
a 6% non-cumulative dividend when and if declared and prohibited the Company
from paying any dividend on the Common Stock unless a 6% dividend was made to
the holders of the Preferred Stock. Those provisions prohibited that Preferred
Stock from having any voting rights or powers whatsoever and prevented
conversion into any other class of stock of the Company. It did provide that
upon any voluntary or involuntary liquidation or winding up of the Company, the
holders of said preferred stock were entitled to $0.20 per share, or an
aggregate of $200,000 prior to any distribution to any other class of stock.
Exchange of rights for Preferred Stock. On October 27, 2006, the creditor
entitled to receive said preferred stock agreed to forgo any right thereto upon
the issuance of 100,000 shares of the Company's Common Stock, said 100,000
shares to be upon a post-split basis.
New Preferred Stock. The proposed restructuring of our capital (See Proposal No.
1) would authorize the establishment of 2,000,000 shares of preferred stock.
This proposal would permit the board of directors, in its sole discretion, to
establish any series of preferred, so long as the total number of shares did not
exceed 2,000,000 shares, without the consent or other approval of the Company's
stockholders. Accordingly, the stockholders would not be able to determine the
voting, dividend, liquidation and redemption rights of any additional preferred
stock, matters that would be left in the sole discretion of the board of
directors. The board of directors has approved, upon the approval of the capital
restructuring summarized under the caption "Proposal No. 1" forth herein to
establish a new series of preferred stock and issue a total of 525,000 shares.
Voting Rights of the Preferred to be Issued. The shares of preferred stock, to
be identified as Series A Preferred Stock, will be entitled to 50 votes for each
share held and the holders of the Series A Preferred Stock are entitled to vote
on each matter to be voted on by the stockholders of the Company.
Restrictions on Transfer of the Series A Preferred Stock. Holders of the Series
A Preferred Stock may not transfer any shares of Series A Preferred Stock,
whether by sale, assignment, exchange, gift, bequest, appointment or otherwise,
except to a permitted transferee, as defined, said permitted transferee being
one who holds the shares for estate planning purposes. If any person other than
the original holder and a permitted transferee of the Series A Preferred Stock
acquires, the Series A Preferred Stock automatically converts, on a one for one
basis, into Common Stock.
Automatic Conversion of the Series A Preferred Stock. Each share of Series A
Preferred Stock automatically converts into one share of Common Stock upon the
death of the original holder or upon the transfer of the shares to any person
other than for estate planning purposes.
Other provisions of the Series A Preferred Stock. The Series A Preferred Stock
may not be redeemed, participates ratably on a share for share basis in any
dividend paid on Common Stock and participates ratably with Common Stock on a
share for share basis in the event of any liquidation of the Company.
Shares reserved for issuance
The Company has not established any stock option plan although it anticipates
proposing one to the Company's shareholders at the Company's next annual
meeting. It anticipates reserving 100,000 shares to be issued pursuant to
warrants for Automotive Properties, LLC. See "Change of Control."
4
CHANGE OF CONTROL
On August 15, 2006, Steven L. Sample entered into an agreement with
Thacker Asset Management, LLC to acquire 4,000,000 shares of the Company's
Common Stock for $50,000 cash which represents 49.6% of the issued and
outstanding shares of the Company's Common Stock as of December 15, 2006. The
$50,000, as well as other expenses of the Company, expenses that were in excess
of $110,000 as of September 30, 2006, paid by Mr. Sample came from the personal
funds of Mr. Sample as well as a loan to Mr. Sample in the amount of $125,000
from Automotive Properties, LLC. Mr. Sample paid a total of $25,000 of the
Company's obligations to its former stock transfer agent and its bankruptcy
counsel for which the Company agreed to issue the 8,117,500 shares pf Common
Stock (post-split) and 500,000 shares of preferred upon the effectiveness of
Proposal No. 1. See "Proposal No. 1".
GENERAL
An individual, Steven L. Sample, recently funded several expenses of the
Company, including attorney fees to close the Company's bankruptcy proceeding,
other legal fees, and stock transfer fees, expenses that exceeded $110,000 as of
September 30, 2006. Mr. Sample did so for the purpose of having a public entity
that would acquire operating assets, automobile auctions in particular, to be
placed into the Company. Although Mr. Sample has held no discussions with any
potential automobile auction regarding its possible acquisition by the Company,
the purpose of these amendments is to establish a corporate structure that will
permit Mr. Sample to implement his strategy and enable the Company to issue Mr.
Sample securities for expenses of the Company Mr. Sample has paid.
To reflect the new business purpose of the Company, the board of directors
has recommended that the Company's stockholders approve a resolution to amend
the Company's Restated Certificate of Incorporation that will change the name of
the Company to Acacia Automotive, Inc. The board of directors has also approved,
subject to approval by the Company's stockholders, an amendment to the Company's
Restated Certificate of Incorporation that will change the Company's capital
structure. This proposed amendment would (i) effect a one for eight reverse
stock split of our Common Stock; (ii) increase the number of authorized shares
of Common Stock to from 15,000,000 to 150,000,000; (iii) authorize 2,000,000
shares of preferred stock, granting the directors the power to establish the
rights, powers, and privileges of a series of preferred stock. If the Proposed
Amendments are approved by stockholders the Proposed Amendments will be filed
with the Secretary of State of the State of Texas, subject to the right to
abandon the amendments as permitted under Section 4.02a.(4) of the Texas
Business Corporation Act.
For expenses Mr. Sample has advanced for the Company, the Company has,
subject to ratification of these amendments by its stockholders, agreed to issue
8,117,500 shares of Common Stock, on a post split basis, to Mr. Sample and
450,000 shares to the spouse of Ms. Myers. The Company has similarly agreed to
issue 500,000 shares and 25,000 shares, respectively, of Series A Preferred
stock to Mr. Sample and the spouse of Ms. Myers.
Because the Company lacks a sufficient number of shares of Common Stock
authorized, currently 15,000,000 shares, to meet the commitment to issue the
Common Stock or Preferred Stock to Mr. Sample, the Company's Chief Executive
Officer, Mr. Sample has a direct interest in having the number of shares of
Common Stock authorized increased to 150,000,000 and to the authorization of the
Preferred Stock which permits the directors to establish the Series described
herein. Similarly, the spouse of Ms. Myers will receive 450,000 shares of Common
Stock and 25,000 shares of Series A Preferred and said spouse has a direct
interest in the approval of the proposals described herein.
The purpose for each of the amendments is described below.
5
PROPOSAL NO. 1
APPROVAL OF AN AMENDMENT TO THE COMPANY'S RESTATED CERTIFICATE OF
INCORPORATION TO RESTRUCTURE THE CAPITAL STRUCTURE OF THE COMPANY WHICH WILL (I)
EFFECT A ONE FOR EIGHT REVERSE STOCK SPLIT OF OUR COMMON STOCK; (II) INCREASE
THE NUMBER OF AUTHORIZED SHARES TO FROM 15,000,000 TO 150,000,000; (III)
AUTHORIZE 2,000,000 SHARES OF PREFERRED STOCK, GRANTING THE DIRECTORS THE POWER
TO ESTABLISH THE RIGHTS, POWERS, AND PRIVILEGES OF A SERIES OF PREFERRED STOCK.
Background for the One for Eight Reverse Stock Split and Increasing the Number
of Authorized Shares
The one for eight reverse stock split will reverse the number of shares to
1,007,500 of which 500,000 shares will be owned by Mr. Sample.
The Board of Directors of the Company has adopted a resolution
recommending that the stockholders amend the Certificate of Incorporation to
effect a one for eight reverse split of the Company's outstanding common stock
(the "Reverse Split"). Upon approval of the amendments by the Company's
stockholders, we will immediately file the Amendment with the Secretary of State
of Texas, and it will become effective on the date of such filing (the
"Effective Date").
The Amendment to the Certificate of Incorporation provides that each eight
shares of common stock outstanding on the Effective Date will be exchanged for
one post-Reverse Split share of the Company's common stock ("New Common Stock").
No fractional shares or scrip will be issued; rather, shareholders who would
otherwise be entitled to a fractional share as a result of the Reverse Split
will be issued one whole share of New Common Stock in lieu of the fraction.
Reasons for Approving the One for Eight Reverse Stock Split and Increasing the
Number of Authorized Shares
The Company plans to purchase several automobile auctions using additional
cash obtained through the issuance of Common Stock to acquire those operations.
The Company may also use Common Stock as part of the consideration to acquire
operations. Without a reverse stock split and an attendant increase in the
number of authorized shares of the Company's common stock, the board of
directors believes that there would not be a sufficient number of shares
authorized to permit the funding and any possible acquisition utilizing shares,
particularly since Mr. Sample has not been issued any shares by the Company for
the expenses he has paid for the Company.
Following the acquisition of operating assets, management of the Company
desires to have a price per share in the trading market of at least $5.00 per
share, largely based upon the possibility of the stock being technically defined
as a penny stock. If a security does not trade on a stock exchange and has a
market price that is less than $5.00 per share, the stock qualifies as a "penny
stock." SEC Rule 15g-9 under the Securities Exchange Act of 1934 imposes
additional sales practice requirements on broker-dealers that recommend the
purchase or sale of penny stocks to persons other than those who qualify as an
"established customer" or an "accredited investor." Most institutional investors
will not invest in penny stocks, and many brokerage firms will discourage their
customers from purchasing penny stocks and will not recommend a penny stock to
their customers. Additionally, the brokerage commissions on the purchase or sale
of stock with a relatively low per share price generally tend to represent a
higher percentage of the sales price than the commission charges on a stock with
a relatively high per share price. The Board of Directors believes these issues
are best addressed by increasing the value per share of the common stock, which
it anticipates will occur as a result of the Reverse Split.
The price of shares of Common Stock that are contemplated being offered is
determined by management's, particularly that of Mr. Sample, judgment about the
potential profitability of an acquired automobile auction and the effect of that
6
profitability on the price of the stock. Without a reverse stock split,
management of the Company believes that a large number of shares would have to
be issued to raise the capital and, given the large number of shares, would have
to be issued at a low price relative to the earning power of the industry into
which the Company plans to enter.
There can be no assurance that the price of the stock will exceed $5.00
per share if the plan, as contemplated is implemented.
A low stock price can have the effect of reducing the liquidity of a
corporation's stock.
Assuming that the reverse stock split is approved and that the shares of
common and preferred stock are issued and converted, there will be 150,000,000
common shares authorized and approximately 10,200,000 common shares outstanding.
The Board of Directors will be authorized to issue the remaining 139,800,000
shares of Common Stock without having to obtain the approval of the
Corporation's shareholders. The Company plans to issue up to 10,000,000 shares
of Common Stock, on a post split basis, in a capital raising transaction. The
issuance of the additional shares would dilute the proportionate interest of
current shareholders in the Company.
Reasons for the authorization of Preferred Stock
The 2,000,000 shares of Preferred Stock may be issued in series from time
to time with such designations, rights, preferences and limitations as the
Company's Board of Directors may determine by resolution. Any series of
preferred stock may possess voting, dividend, liquidation and redemption rights
superior to those of the Company's Common Stock. The rights of the holders of
Common Stock will be subject to and may be adversely affected by the rights of
the holders of any of the Preferred Stock that may be issued in the future.
Issuance of a series of Preferred Stock, or providing desirable flexibility in
connection with possible acquisitions and other corporate purposes, could make
it more difficult for a third party to acquire, or discourage a third party from
acquiring our outstanding shares of Common Stock and make removal of the Board
of Directors more difficult. The Company has no shares of Preferred Stock
currently authorized.
As indicated above, the Company does have plans to issue 525,000 shares of
preferred stock. While this stock is convertible into Common Stock on a share
for share basis and would participate in any liquidation on the same basis, each
share of preferred stock has 50 votes on all matters to be voted on by the
shareholders of the Corporation. Of the 525,000 shares to be issued as Series A
Preferred, 500,000 would be issued to Mr. Sample and 25,000 shares to the spouse
of Ms. Myers. Accordingly, after the adoption of the amendments set forth herein
and with the irrevocable proxy of the holder of the remaining votes, Mr. Sample
would have 34,867,500 votes of the total votes of 35,924,000, or 97.2% of the
total votes. Accordingly, any third party would, for the reasonably foreseeable
future require Mr. Sample's consent to acquire the Company or have influence
without Mr. Sample's consent.
The purpose of the issuance of the preferred stock to Mr. Sample is that
the success or failure of the Company will be with Mr. Sample and his
initiative. The voting provisions of the proposed stock would assure Mr.
Sample's control to effect the business plan. Nonetheless, the provision would
significantly inhibit the ability of any stockholder or group of stockholders to
implement a plan other than that contemplated or approved by Mr. Sample.
A copy of the proposed designations of rights and preferences is attached
hereto.
General Effect of The Reverse Stock Split On Capital Stock
The New Common Stock will not be different from the common stock held by
the Company's stockholders prior to the Reverse Split. The stockholders will
have the same relative rights following the Effective Date as they had prior to
the Effective Date, except to the extent the proportion of shares that they own
is affected by the issuance of fractional shares.
7
THE AFFIRMATIVE VOTE OF THE MAJORITY OF THE SHARES THAT ARE ISSUED AND
OUTSTANDING IS REQUIRED TO AMEND THE COMPANY'S RESTATED CERTIFICATE OF
INCORPORATION. THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE PROPOSAL TO
REORGANIZE THE CPMPANY'S CAPITAL STRUCTURE. ALL PROXIES SOLICITED ON BEHALF OF
THE COMPANY BY THE BOARD OF DIRECTORS WILL BE VOTED IN ACCORDANCE WITH THE
SPECIFICATIONS ON THE FORM OF PROXY. WHERE NO SPECIFICATION IS MADE, PROXIES
WILL BE VOTED "FOR" PROPOSAL NO. 1.
PROPOSAL NO. 2
APPROVAL OF AN AMENDMENT TO THE COMPANY'S RESTATED CERTIFICATE OF INCORPORATION
TO CHANGE THE COMPANY'S NAME TO ACACIA AUTOMOTIVE, INC.
Reasons for amending the Articles of Incorporation to change the name.
The Board of Directors of the Company has adopted a resolution to change
the name of the corporation from Gibbs Construction, Inc. to "Acacia Automotive,
Inc." The primary purpose of the name change is to better represent the
corporation's anticipated business, the owning and operation of automobile
auctions. The Board of Directors has determined to change the corporation's name
to better indicate the nature of the corporation's business.
THE AFFIRMATIVE VOTE OF THE MAJORITY OF THE SHARES THAT ARE ISSUED AND
OUTSTANDING IS REQUIRED TO AMEND THE COMPANY'S RESTATED CERTIFICATE OF
INCORPORATION. THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE PROPOSAL TO
CHANGE THE COMPANY'S NAME TO ACACIA AUTOMOTIVE, INC. ALL PROXIES SOLICITED ON
BEHALF OF THE COMPANY BY THE BOARD OF DIRECTORS WILL BE VOTED IN ACCORDANCE WITH
THE SPECIFICATIONS ON THE FORM OF PROXY. WHERE NO SPECIFICATION IS MADE, PROXIES
WILL BE VOTED "FOR" PROPOSAL NO. 2.
Previous compensation to officers of the Company
and their transactions withFor the last three fiscal years, the Company is based upon informationhas been inactive, without a
Chief Executive Officer. No officer or director of the Company has received
fromcompensation and, except as described herein, there are no plans to issue stock
or other compensation to officers of the individual directorsCompany. Upon funding of a private
placement, the Company anticipates paying to Mr. Sample a base salary of
$150,000.
EXCHANGE OF STOCK CERTIFICATE
Certificates for the corporation's common stock that recite the name "Gibbs
Construction, Inc." will continue to represent shares of the corporation after
the Effective Date. If, however, a shareholder wishes to exchange his
certificate for a certificate reciting the name "Acacia Automotive, Inc." after
the Effective Date, he may do so by surrendering his certificate to the
corporation's Transfer Agent with a request for a replacement certificate and
officers.
Your directors and officers desire that allthe appropriate stock transfer fee. Gibbs Construction, Inc.'s Transfer Agent
is:
Pacific Stock Transfer Company
500 E. Warm Springs Road - Suite 240
Lax Vegas, NV 89119
Phone: (702) 361-3033
Fax: (702) 433-1979
OTHER MATTERS
The Company has not held an annual meeting of stockholders be represented at
the Annual Meeting of Stockholders. In the event you cannot attend in person,
please date, sign, and return the enclosed proxyfor several
years. It anticipates holding such meeting in the enclosed, post-paid
envelopeSpring of 2007. Any
stockholder desiring to submit a proposal for consideration at your earliest convenience so that your shares may be voted. The
proxy must be signed by all registered holders exactly asmeeting
should submit it at a time reasonably in advance of the stock is
registered.
The Company will furnish without charge a copySpring of its Annual Report of2007.
8
Certain information set forth in the Company's Form 10-K including the financial statements and the schedules thereto, for the fiscal
year ended December 31, 1998 filed2005, is set forth on the immediately following pages.
NO DISSENTERS RIGHTS
Under Texas law, shareholders are not entitled to dissenters' rights with
the Securities and Exchange
Commission pursuantrespect to Section 13 or 15(d)any of the Securities Exchange Act of
1934 to any stockholder upon written request to 1855 Wall Street, Garland, TX
75041. A copy of the exhibits to such report will be furnished to any
stockholder upon written request therefor and payment of a nominal fee.transactions described in this Proxy Statement.
December _, 2006
By Order of the Board of Directors
9
Item 6. Management's Discussion and Analysis or Plan of Operations.
For each of the fiscal years ended December 31, 2003, 2004, and 2005, the
Company had no operations, income, expenses, assets or liabilities or other
activity. With the funding by Mr. Sample of the costs of completing the
Company's bankruptcy proceeding, which was completed in June 2006, Mr. Sample
commenced a plan to revive the Company by acquiring automobile auctions. This
plan required the funding by Mr. Sample of certain Company debts which, although
discharged in the bankruptcy proceeding, required payment to commence operating
as a public entity. Further, the revival of the Company as a public entity
required substantial expenditures for legal and accounting fees, among other
costs.
The implementation of Mr. Sample's plan required the reorganizing of the
Company's capital structure, a plan that is anticipated to be completed in the
early Winter of 2006, 2007. Simultaneously, it required the raising of
additional capital, a process which is anticipated to be completed in early
2007. With the additional capital, the Company will attempt to acquire
automobile auctions. The plan for an acquired auction or auctions will depend
upon the auction or auctions acquired. The Company will not hold any discussions
with any potential auction to be acquired until the Company has completed the
reorganizing of its capital structure. See Item 1. - Description of Business.
Without a successful raising of additional capital of at least $1,000,000,
the Company will not be able to commence operations.
Item 8. Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure.
None
.
ACACIA AUTOMOTIVE, INC.
(FORMERLY GIBBS CONSTRUCTION, INC.)
INDEX TO FINANCIAL STATEMENTS
Page
Report of Independent Registered Public Auditing Firm..............F-2
Balance Sheets, December 31, 2003, 2004 and 2005...................F-3
Statement of Stockholders' Equity for the Years Ended
December 31, 2003, 2004 and 2005..............................F-4
Notes to Financial Statements......................................F-5
F-1
Killman, Murrell & Company, P.C.
Certified Public Accountants
1931 E. 37th Street, Suite 7 3300 N. A Street, Bldg. 4, Suite 200 2626 Royal Circle
Odessa, Texas 79762 Midland, Texas 79705 Kingwood, Texas 77339
(432) 363-0067 (432) 686-9381 (281) 359-7224
Fax (432) 363-0376 Fax (432) 684-6722 Fax (281) 359-7112
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders
Acacia Automotive, Inc.
(formerly Gibbs Construction, Inc.)
Ocala, Florida
We have audited the accompanying balance sheets of Acacia Automotive, Inc. as of
December 31, 2005, 2004 and 2003 and the related statement of stockholders'
equity for the years then ended. 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 audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (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 misstatement. 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 audits provide 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 Acacia Automotive, Inc. as of
December 31, 2005, 2004 and 2003 in conformity with United States generally
accepted accounting principles.
As discussed in Note 3 to the financial statements, the Company has recently
emerged from bankruptcy and has had no operations for three years, has no assets
and does not have financial resources available for its use. The Company is not
a going concern. Management's plans in regard to these matters are described in
Note 3. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty, if any.
/s/ Killman, Murrell & Company, P.C.
KILLMAN, MURRELL & COMPANY, P.C.
November 16, 2006
Odessa, Texas
F-2
ACACIA AUTOMOTIVE, INC.
(FORMERLY GIBBS CONSTRUCTION, INC.)
BALANCE SHEETS
December 31,
--------------------------------------------------------
2003 2004 2005
------------ ---------------- -------------
ASSETS
ASSETS $ - $ - $ -
============= =============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES $ - $ - $ -
------------ --------------- -------------
STOCKHOLDERS' EQUITY:
Preferred Stock, no par value, 6%
non-cumulative dividend, 1,000,000
shares authorized; none issued and
outstanding. - - -
Preferred Stock, $0.001 par value 2,000,000
shares authorized; none issued and outstanding - - -
Common Stock, $0.001 par value, 150,000,000
shares authorized; 1,107,500 share issued and
outstanding 1,107 1,107 1,107
Paid-In-Capital 5,042,727 5,042,727 5,042,727
Retained Deficit (5,043,834) (5,043,834) (5,043,834)
-------------- --------------- --------------
Total Stockholders' Equity - - -
-------------- -------------- -------------
Total Liabilities and Stockholder's Equity $ - $ - $ -
============== ============== =============
The accompanying notes are an integral part of these
financial statements.
F-3
ACACIA AUTOMOTIVE, INC.
(FORMERLY GIBBS CONSTRUCTION, INC.)
STATEMENT OF STOCKHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 2003, 2004 AND 2005
Preferred Stock, Preferred Stock, Common
No Par Value $0.001 Par Value Common Stock Stock
-------------------- ---------------- ---------------- Paid-in Retained Subscription
Shares Amount Shares Amount Shares Par Value Capital Deficit Receivable Total
--------- --------- ------- ---- ---------- -------- ---------- ----------- -------- --------
Balance December 31, 2002 1,000,000 $ 200,000 - $ - 8,561,000 $ 85,610 $4,758,224 $(5,043,834)$ - $ -
2006 Restructuring transactions
Abandonment of Common
Shares held by Creditor Trust - - - - (501,000) (5,010) 5,010 - - -
Change in Par Value - - - - - (72,540) 72,540 - - -
Reverse Stock Split - - - - (7,052,500) (7,053) 7,053 - - -
Preferred Stock Exchange (1,000,000) (200,000) 100,000 100 199,900 - - -
---------- --------- ------- ---- ---------- -------- ---------- ----------- -------- --------
Restated Balance December 31,
2002, 2003, 2004 and 2005 - $ - - $ - 1,107,500 $ 1,107 $5,042,727 $(5,043,834)$ - $ -
========== ========= ======= ==== ========== ======== ========== =========== ========= =========
The accompanying notes are an integral part of these
financial statements.
F-4
ACACIA AUTOMOTIVE, INC.
(FORMERLY GIBBS CONSTRUCTION, INC.)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003, 2004 AND 2005
NOTE 1: THE COMPANY
Gibbs Construction, Inc. ("Gibbs" or the "Company") was a full service, national
commercial construction company located in Garland, Texas. During 1999, Gibbs
experienced significant losses associated with certain construction projects,
which were bonded by Gibbs' primary bonding surety. In the fourth quarter of
1999, Gibbs' bonding surety notified Gibbs that it would no longer provide
completion and payment bonds for Gibbs' construction projects. Given these
events, Gibbs began a series of negotiations with its bonding surety in December
of 1999, which resulted in a written agreement in January of 2000, whereby the
bonding surety would provide funds to finish certain projects and required Gibbs
to terminate construction on other projects. These events led to Gibbs inability
to satisfy its debts in the ordinary course of business and on April 20, 2000,
Gibbs filed a Petition pursuant to Chapter 11 of the United States Bankruptcy
Code.
On July 28, 2000, Gibbs received permission from its Court of Jurisdiction to
solicit approval of its Plan of Reorganization. Gibbs continued to operate on a
limited basis pending approval of its Plan of Reorganization. On November 10,
2000, Gibbs completed its Plan of Reorganization pursuant to an order of the
court as follows:
a) Gibbs transferred all of its assets and liabilities to the Gibbs
Construction, Inc. Creditor Trust ("Trust").
b) Gibbs issued 501,000 shares of its authorized but previously unissued
common stock to the Trust in settlement of unsecured creditor claims.
c) Gibbs approved issuance of 1,000,000 shares of a newly created
preferred stock, with an aggregate liquidation preference value of
$200,000 and a six percent (6%) non-cumulative dividend, to the bonding
surety.
d) Gibbs issued 4,000,000 shares of its authorized but previously unissued
common stock to Thacker Asset Management, LLC (TAM), a Texas limited
liability company, in exchange for certain operating assets and the
obligation to complete certain construction projects of TAM.
Gibbs did not obtain a court ordered final decree from the bankruptcy court due
to the difficulties encountered with the implementation of the re-organization
plan. All operating activities ceased in 2002. On June 26, 2006, the bankruptcy
trustee requested and received a Order for Final Decree. The 501,000 shares of
common stock issued to the Trust were abandoned and returned to the Company on
October 5, 2006. These shares have been cancelled.
On July 25, 2006, the Board of Directors of the Company met and approved the
following actions:
o Changed the Company's name to Acacia Automotive, Inc.
o Authorized 2,000,000 shares of $0.001 par value preferred stock and authorized
the Board of Directors to:
a.) set the number of shares constituting each series of preferred stock
b.) establish voting rights, powers, preferences and conversion rights
o Increased the authorized number of common shares to 150,000,000 and decreased
the par value to $0.001.
F-5
ACACIA AUTOMOTIVE, INC.
(FORMERLY GIBBS CONSTRUCTION, INC.)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003, 2004 AND 2005
NOTE 1: THE COMPANY (Continued)
o Authorized a one-for-eight reverse stock split of the Company's common stock.
o Designated 525,000 shares of preferred stock as Series A Preferred Stock, with
the following rights:
a.) Dividends can be paid when declared by the Board of Directors but must
be also simultaneously declared on the common stock.
b.) Series A Preferred Stock may not be redeemed.
c.) Each share of Series A Preferred Stock is convertible into one share of
common stock at the option of the holders.
d.) The holders of Series A Preferred Shares are certified to 50 votes on
all matters to be voted on by the shareholders of the Company for each
share of Series A Preferred Stock held.
o Authorized the issuance of common stock and Series A Preferred Stock for
services rendered and payments of organization expenses on behalf of the
Company:
a.) 8,567,500 shares of common stock.
b.) 525,000 shares of Series A Preferred Stock.
c.) Estimated issuance value is $172,350.
Certain of the actions approved by the Board of Directors on July 25, 2006,
require the approval of the shareholders of the Company; however, since the
Company's management has sufficient common stock ownership to assure approval of
the actions taken, the various authorized stock transactions have been reflected
in the accompanying financial statements.
NOTE 2: STOCKHOLDERS' EQUITY
Preferred Stock
In 2000, the bankruptcy court authorized the issuance of 1,000,000 shares of no
par value preferred stock to the Company's bonding surety. These preferred
shares have a liquidation preference value of $0.20 per share and have a six
percent (6%) non-cumulative dividend rate. On October 27, 2006, the bonding
surety agreed to exchange the 1,000,000 shares of no par value preferred stock
for 100,000 shares of the Company's $0.001 par value common stock.
In July 2006 the Company's Board of Directors authorized a 2,000,000 share
series of preferred stock and the Board of Directors were authorized to fix:
o The number of shares constituting each series of preferred stock
o Voting rights, powers, preferences and conversion rights
None of these preferred shares were outstanding at December 31, 2003, 2004 and
2005.
F-6
ACACIA AUTOMOTIVE, INC.
(FORMERLY GIBBS CONSTRUCTION, INC.)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003, 2004 AND 2005
NOTE 2: STOCKHOLDERS' EQUITY - (Continued)
Common Stock
Prior to July 25, 2006, the Company had authorized 15,000,000 shares of $0.01
par value common stock and 8,561,000 common shares outstanding. On July 25,
2006, the Company's Board of Directors approved the following actions which have
been retroactively reflected in the Statement of Stockholders' Equity.
o Abandonment of 501,000 shares of common stock issued to the creditor trust, on
October 5, 2006.
o Change in par value for $0.01 to $0.001.
o One (1) for eight (8) reverse stock split.
Retained Deficit
The Company ceased all operations in 2002 and since that time there has been no
operating results.
NOTE 3: GOING CONCERN
On June 26, 2006, the Bankruptcy Court for the Northern District of Texas,
issued its Order for Final Decree related to the Company bankruptcy petition
filed April 20, 2000. The Board of Directors convened its first post bankruptcy
meeting on July 25, 2006, and assumed operating control. On August 15, 2006, the
Company entered into a "Stock Purchase and Subscription Agreement" whereby the
effective control of the Company was transferred to Steven L. Sample, an
individual residing in the State of Florida. Mr. Sample and his assignees
purchased 5,500,000 pre-split shares for an aggregate purchase price of $65,000
plus at least $20,000 to discharge any obligations of the Company and agreed to
provide the capital such that the Company can arrange to have its filings with
the United States Securities and Exchange Commission brought current.
The Company issued 8,567,500 shares of its post reverse split $0.001 par value
common stock and 525,000 shares of its Series A Preferred Stock for services
rendered and expenses paid (estimated total value $172,350).
None of the above described transactions provided the Company with operating
funds.
On September 11, 2006, the Company issued a private placement memorandum for the
sale of 8,000,000 shares of the Company's common stock at $2.00 per share.
Without a successful raising of at least $1,000,000, the Company will not be
able to commence operations.
F-7
EXHIBIT A - RESOLUTIONS AMENDMENDING ARTICLES OF INCORPORATION TO CHANGE THE
COMPANY'S CAPITAL STRUCTURE
PROPOSAL NO. 1
RESOLVED, that ARTICLE FOUR be, and it hereby is, deleted in its
entirety and a new ARTICLE FOUR be, and it hereby is, adopted to
read as follows:
ARTICLE FOUR
The corporation shall be authorized to issue two classes of
shares of stock to be designated, respectively, "Preferred Stock"
and Common Stock"; the total number of shares of stock which the
corporation shall have authority to issue is One hundred fifty two
million (152,000,000); the total number of shares of Preferred Stock
shall be Two Million (2,000,000) with a par value of One Tenth of a
Cent ($0.001); the total number of shares of Common Stock shall be
One Hundred Fifty Million (150,000,000) with a par value of One
Tenth of a Cent ($0.001).
Shares of Preferred Stock may be issued from time to time in one
or more series. The Board of Directors is hereby authorized to fix
the voting rights, designations, powers, preferences, and the
relative, participating, optional or other rights, if any, and the
qualifications, limitations or restrictions thereof, of any wholly
unissued series of Preferred Stock; and to fix the number of shares
constituting such series, and to increase or decrease the number of
shares of any such series (but not below the number of shares
thereof then outstanding).
Effective on the filing of this Certificate of Amendment of
Restated Certificate of Incorporation (the "Effective Time"), a
one-for-eight reverse stock split of the Corporation's Common Stock
shall become effective, pursuant to which each eight shares of
Common Stock outstanding and held of record by each stockholder of
the Corporation (including treasury shares) immediately prior to the
Effective Time (the "Old Common Stock") shall be reclassified and
combined (the "Reverse Split") into one share of Common Stock
automatically and without any action by the holder thereof upon the
Effective Time and shall represent one share of Common Stock from
and after the Effective Time (the "New Common Stock"). No fractional
shares of Common Stock shall be issued as a result of such
reclassification and combination. In lieu of any fractional share to
which the stockholder would otherwise be entitled, the Corporation
shall issue such additional fraction of a share as is necessary to
increase the fractional share to a full share. Whether or not
fractional shares are issuable upon such reclassification and
combination shall be determined on the basis of the total number of
shares of Old Common Stock held by a holder and the total number of
shares of New Common Stock issuable to such holder as a result of
the Reverse Split.
EXHIBIT B - RESOLUTIONS AMENDMENTING ARTICLES OF INCORPORATION
PROPOSAL NO. 2
RESOLVED, that ARTICLE ONE be, and it hereby is deleted in its entirety
and a new ARTICLE ONE be, and it hereby is, adopted to read as follows:
ARTICLE ONE
The name of the Corporation is Acacia Automotive, Inc.
EXHIBIT C - PROSPOSED DESIGNATION OF RIGHTS AND PREFERENCES OF SERIES A
PREFERRED STOCK
The Series A Preferred Stock shall consist of 525,000 shares. The powers,
preferences, rights, restrictions, and other matters relating to the Series A
Preferred Stock are as follows:
1. Dividends
(a) Dividends may be paid on either or both the Common Stock and the
Series A Preferred Stock as and when declared by the Board of
Directors of the Corporation out of funds of the Corporation legally
available for the payment of dividends, except that so long as any
shares of Series A Preferred Stock are outstanding:
(i) No dividend (other than a dividend payable in shares of the
Corporation in the manner provided in paragraph 1(a)(ii)
below) shall be declared or paid upon either the Common Stock
or the Series A Preferred Stock unless such dividend is
simultaneously declared and paid upon both Common Stock and
Series A Preferred Stock, the dividend on the Series A
Preferred Stock being paid on an as converted basis.
(ii) Stock dividends declared and paid on the Common Stock shall be
payable solely in shares of Common Stock and stock dividends
declared and paid on the Series A Preferred Stock shall be
paid solely in shares of Series A Preferred Stock. No stock
dividend may be declared or paid on the Common Stock unless a
stock dividend payable in shares of Series A Preferred Stock,
proportionately on a per share basis, is simultaneously
declared and paid on the Series A Preferred Stock. No stock
dividend may be declared or paid on the Series A Preferred
Stock unless a stock dividend payable in shares of Common
Stock, proportionately on a per share basis, is simultaneously
declared and paid on the Common Stock.
(b) In the event the Corporation shall declare a distribution (other
than any distribution described in Section 2 or Section 3) payable
in securities of other persons, evidences of indebtedness issued by
the Corporation or other persons, assets (excluding cash dividends)
or options or rights to purchase any such securities or evidences of
indebtedness, then, in each such case the holders of the Series A
Preferred Stock shall be entitled to a proportionate share of any
such distribution as though the holders of the Series A Preferred
Stock of the number of shares of Common Stock of the Corporation
into which their respective shares of Series A Preferred Stock are
convertible as of the record date fixed for the determination of the
holders of Common Stock of the Corporation entitled to receive such
distribution.
2. Liquidation
(a) In the event of any liquidation, dissolution or winding up of the
Corporation, whether voluntary or involuntary, the holders of the
Common Stock and Series A Preferred Stock shall participate ratably
in proportion to the shares of Common Stock then held by them and
the shares of Common Stock which they then have the right to acquire
upon conversion of the shares of Series A Preferred Stock then held
by them.
(b) For purposes of this Section 2, (i) any acquisition of the
Corporation by means of merger or other form of corporate
reorganization in which outstanding shares of the Corporation are
exchanged for securities or other consideration issued, or caused to
be issued, by the acquiring corporation or its subsidiary (other
than a mere reincorporation transaction) or (ii) a sale of all or
substantially all of the assets of the Corporation, shall be treated
as a liquidation, dissolution or winding up of the Corporation and
shall entitle the holders of Series A Preferred Stock and Common
Stock to receive at the closing in cash, securities or other
property amounts as specified in Sections 2(a) above.
(c) Whenever the distribution provided for in this Section 2 shall be
payable in securities or property other than cash, the value of such
distribution shall be the fair market value of such securities or
other property as determined in good faith by the Board of
Directors.
Danny R. Gibbs Chairman3. Redemption - The Series A Preferred Stock may not be redeemed.
4. Voting Rights
Each holder of shares of the Series A Preferred Stock shall be entitled to
50 votes on all matters to be voted on by the shareholders of the
Corporation for each share of Series A Preferred Stock held.
5. Conversion
The holders of the Series A Preferred Stock shall have conversion rights as
follows (the "Conversion Rights"):
(a) Right to Convert. Each share of Series A Preferred Stock shall be
convertible, at the option of the holder thereof, into one share of
Common Stock.
(b) Mandatory Conversion of Series A Preferred Stock. Upon the death of
the Original Holder or the transfer of shares of Series A Preferred
Stock to any person other than a Permitted Transferee, then, without
further act on the part of any person, each share of Series A
Preferred Stock issued and outstanding (in the case of the Original
Holder's death) or each share of Series A Preferred Stock
transferred to a person other than a Permitted Transferee (in the
case of such a transfer) shall be converted to ten fully paid and
nonassessable share of Common Stock. Upon any such conversion, stock
certificates formerly representing outstanding shares of Series A
Preferred Stock shall thereupon and thereafter be deemed to
represent a like number of shares of Common Stock, and any
outstanding right to receive Series A Preferred Stock shall
automatically become the right to receive a like number of shares of
Common Stock.
(c) Mechanics of Conversion. Before any holder of Series A Preferred
Stock shall be entitled to convert the same into shares of Common
Stock, he shall surrender the certificate or certificates therefore,
duly endorsed, at the office of the Corporation or of any transfer
agent for such stock, and shall give written notice to the
Corporation at such office that the holder elects to convert the
same and shall state therein the name or names in which the holder
wishes the certificate or certificates for shares of Common Stock to
be issued. The Corporation shall, as soon as practicable thereafter,
issue and deliver at such office to such holder of Series A
Preferred Stock, a certificate or certificates for the number of
shares of Common Stock to which he shall be entitled as aforesaid.
Such conversion shall be deemed to have been made immediately prior
to the close of business on the date of surrender of the shares of
Series A Preferred Stock to be converted, and the person or persons
entitled to receive the shares of Common Stock issuable upon such
conversion shall be treated for all purposes as the record holder or
holders of such shares of Common Stock on such date.
(d) Adjustments to Conversion Prices for Stock Dividends and for
Combinations or Subdivision of Common Stock. The shares of Common
Stock and Series A Preferred Stock shall not be subdivided by a
stock split, reclassification or otherwise or combined by reverse
stock split, reclassification or otherwise unless, at the same time,
the shares of Common Stock and Series A Preferred Stock are
proportionately, on a per share basis, so subdivided or combined.
(e) No Impairment. The Corporation will not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or
performed hereunder by the Corporation, but will at all times in
good faith assist in the carrying out of all the provisions of this
Section 5 and in the taking of all such action as may be necessary
or appropriate in order to protect the Conversion Rights of the
holders of the Series A Preferred Stock against impairment.
(f) Reservation of Stock Issuable Upon Conversion. The Corporation shall
at all times reserve and keep available out if its authorized but
unissued shares of Common Stock, solely for the purpose of effecting
the conversion of the shares of the Series A Preferred Stock, such
number of its shares of Common Stock as shall from time to time be
sufficient to effect the conversion of all outstanding shares of the
Series A Preferred Stock; and if at any time the number of
authorized but unissued shares of Common Stock shall not be
sufficient to effect the conversion of all then outstanding shares
of the Series A Preferred Stock, the Corporation will take such
corporate action as may, in the opinion of its counsel, be necessary
to increase its authorized but unissued shares of Common Stock to
such number of shares as shall be sufficient for such purpose,
including, without limitation, engaging in best efforts to obtain
the requisite stockholder approval of any necessary amendment to the
Certificate of Incorporation.
6. Restrictions and Limitations.
(a) Transfer of Series A Preferred Stock. No person holding shares of
Series A Preferred Stock may transfer, and the Corporation shall not
register the transfer of such shares of Series A Preferred Stock,
whether by sale, assignment, exchange, gift, bequest, appointment or
otherwise, except to a "Permitted Transferee." The term "Permitted
Transferee" shall mean any trust that is established by the holder
to whom the shares were initially issued (the "Original Holder") for
estate planning purposes that provides for distribution to the
Original Holder's beneficiaries of shares of Series A Preferred
Stock upon the Original Holder's death, provided that the Original
Holder retains voting control with respect to such shares of Series
A Preferred Stock until his death.
(i) If any shares of Series A Preferred Stock are acquired by any
person who is not a Permitted Transferee, all shares of Series A
Preferred Stock then held by such person shall be deemed, without
further act on the part of any person, to be converted into
shares of Common Stock, and stock certificates formerly
representing such shares of Series A Preferred Stock shall
thereupon and thereafter be deemed to represent the like number
of shares of Common Stock.
(ii) Notwithstanding anything to the contrary set forth herein, the
Original Holder may pledge his shares of Series A Preferred Stock
to a pledgee pursuant to a bona fide pledge of such shares as
collateral security for indebtedness due to the pledgee;
provided, however, that (i) the Original Holder at all times
retains voting control with respect to such pledged shares until
an event of foreclosure or similar action, and (ii) such shares
shall not be transferred to or registered in the name of any such
pledgee and shall remain subject to the provisions of this
paragraph (b). In the event of foreclosure or other similar
action by the pledgee, such pledged shares of Series A Preferred
Stock shall be deemed, without further act on the part of any
person, to be converted into shares of Common Stock and
transferred to the pledgee.
(iii) Shares of Series A Preferred Stock shall be registered in the
names of the beneficial owners thereof and not in "street" or
"nominee" name. For this purpose, a "beneficial owner" of any
shares of Series A Preferred Stock shall mean the Original Holder
or a Permitted Transferee. The Corporation shall note or cause to
be noted on the certificates for shares of Series A Preferred
Stock, the existence of the restrictions on transfer and
registration of transfer imposed by this paragraph 6.
7. No Reissuance of Series A Preferred Stock
No share or shares of Series A Preferred Stock acquired by the Corporation
by reason of redemption, purchase, conversion or otherwise shall be
reissued, and all such shares shall be cancelled, retired and eliminated
from the shares which the Corporation shall be authorized to issue.
PROXY
This Proxy is Solicited on Behalf of the Board of Directors
Garland, Texas
July 6, 1999
GIBBS CONSTRUCTION, INC.
SPECIAL MEETING
January 25, 2007
The undersigned hereby appoints Steven L. Sample as proxy to represent
the undersigned, with full power of substitution at the Special Meeting of
Stockholders of Gibbs Construction, Inc, to be held on Thursday, January 25,
2007, at 10:00 a.m. at Richardson Renaissance Hotel, 900 E. Lookout Drive,
Richardson, TX 75082 and at any and all adjournments thereof:
1. PROPOSAL TO AMEND THE COMPANY'S RESTATED CERTIFICATE OF INCORPORATION
TO (I) EFFECT A ONE FOR EIGHT REVERSE STOCK SPLIT OF OUR COMMON STOCK; (II)
INCREASE THE NUMBER OF AUTHORIZED SHARES TO 150,000,000; (III) AUTHORIZE
2,000,000 SHARES OF PREFERRED STOCK, GRANTING THE DIRECTORS THE POWER TO
ESTABLISH THE RIGHTS, POWERS, AND PRIVILEGES OF A SERIES OF PREFERRED STOCK.
FOR / / AGAINST / / ABSTAIN / /
2. PROPOSAL TO AMEND THE COMPANY'S RESTATED CERTIFICATE OF INCORPORATION
TO CHANGE THE NAME OF THE CORPORATION TO ACACIA AUTOMOTIVE, INC.
FOR / / AGAINST / / ABSTAIN / /
In their discretion, the Proxies are authorized to vote upon such other matters
that may properly come before the meeting.
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY
THE UNDERSIGNED STOCKHOLDER. UNLESS OTHERWISE SPECIFIED, THE SHARES WILL BE
VOTED FOR PROPOSAL 1.
Signatures of Stockholder(s) ___________________________Dated _________________
NOTE: Signature should agree with name on stock certificate. Executors,
administrators, trustees and other fiduciaries should so indicate when signing.