-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JBhZP5HF2DccfkCSBA0xUTuSo498E/gv0svzIS9K4xXIRxy7N5nKq+b/IlgkEM7i Iu3z61gn9BtVL5LpeaZ2Gg== 0001214782-08-000217.txt : 20080813 0001214782-08-000217.hdr.sgml : 20080813 20080812180336 ACCESSION NUMBER: 0001214782-08-000217 CONFORMED SUBMISSION TYPE: S-1 PUBLIC DOCUMENT COUNT: 12 FILED AS OF DATE: 20080813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Organic Alliance, Inc. CENTRAL INDEX KEY: 0001442634 IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: S-1 SEC ACT: 1933 Act SEC FILE NUMBER: 333-152980 FILM NUMBER: 081010828 BUSINESS ADDRESS: STREET 1: 1250 NE LOOP 410 STREET 2: SUITE 320 CITY: SAN ANTONIO STATE: TX ZIP: 78209 BUSINESS PHONE: 2108268900 MAIL ADDRESS: STREET 1: 1250 NE LOOP 410 STREET 2: SUITE 320 CITY: SAN ANTONIO STATE: TX ZIP: 78209 S-1 1 organic-s1.htm ORGANIC ALLIANCE, INC. FORM S-1 REGISTRATION STATEMENT FILED AUGUST 2008 organic-s1.htm
 


As filed with the Securities and Exchange Commission on August 13, 2008

Registration No. __________
  
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
 
ORGANIC ALLIANCE, INC.
(Name of small business issuer in its charter)

Nevada
 
5141  
 
20-0853334
(State or jurisdiction of
incorporation or organization)
 
(Primary Standard Industrial
Classification Code Number)
 
(I.R.S. Employer
I.D. Number)

 
1250 NE Loop 410
San Antonio, TX 78209
(210) 826-8900
(Address and telephone number of principal executive offices)
 

 
1250 NE Loop 410
San Antonio, TX 78209
(210) 826-8900
 (Address of principal place of business or intended principal place of business)

Thomas Morrison, Chief Executive Officer
1250 NE Loop 410
San Antonio, TX 78209
(210) 826-8900
(Name, address and telephone number of agent for service)
 
Copies to:
 
Gary A. Agron, Esquire
5445 DTC Parkway, Suite 520
Greenwood Village, CO 80111
(303) 770-7254
(303) 770-7257 (Fax)
 
Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this registration statement.
 
If any securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check the following box:    ý
 

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o
 
If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o
 
If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o

Indicate by check mark whether Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o
Accelerated filer o
 
 
Non-accelerated filer o
Smaller reporting company o

(Do no check if a smaller reporting company)
 ____________________
 
CALCULATION OF REGISTRATION FEE
   
 
Title of Each Class of
Securities to be Registered
 
Amount to
Be Registered
 
Proposed Maximum
Offering Price
Per Share
 
Proposed Maximum
Aggregate
Offering Price
 
Amount of
Registration Fee
   
 
Common stock, $.001 par value
 
10,325,468
 
$1.05 (1)
 
$10,841,741
 
$426.00
                   
 
Common stock, underlying
common stock purchase warrants
 
6,000,168
 
$1.05 (1)
 
   6,300,176
 
 248.00
                   
 
Totals
 
16,325,636
     
$17,141,918
 
$674.00
     
 
(1)
Represents the closing price of the Common Stock on the Pink Sheets on August 8, 2008.
 
 
This registration statement registers the resale of 10,325,468 shares of Common Stock and 6,000,168 shares of Common Stock underlying common stock purchase warrants held by security holders of the Registrant.  In addition to the number of shares set forth above, the amount to be registered includes any shares of Common Stock issued as a result of stock splits, stock dividends and similar transactions in accordance with Rule 416.
 
The Proposed Maximum Offering Price Per Share and the Proposed Maximum Aggregate Offering Price in the table above are estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(c) promulgated under the Securities Act of 1933.
 
       The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until it shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
 

The information in this prospectus is not complete and may be changed.  We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective.  This prospectus is not an offer to sell these securities, and we are not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
 
Subject to completion                                            
Dated August 13, 2008
 
16,325,636 shares of Common Stock
 
ORGANIC ALLIANCE, INC.
 
This prospectus covers the resale by our selling stockholders of 10,325,468 shares of our Common Stock and 6,000,168 shares of Common Stock underlying common stock purchase warrants.  The selling stockholders’ names and share amounts are set forth under “Selling Stockholders and Plan of Distribution” in this prospectus.  We will not receive any proceeds from the sale of shares offered by the selling stockholders and any proceeds from the exercise of common stock purchase warrants will be added to our working capital.
 
Our Common Stock is quoted for sale on the Pink Sheets of the National Quotation Service under the symbol ORGC.  On August 8, 2008, the closing price of the Common Stock was $1.05 per share.

Investing in our Common Stock involves substantial risks.  See “Risk Factors” beginning on page 4.
 
The Securities and Exchange Commission and state securities regulators have not approved or disapproved these securities or passed upon the adequacy or accuracy of this prospectus.  Any representation to the contrary is a criminal offense.
 
The date of this prospectus is August 12, 2008.
 
 
 
 
 
 
 
 
 

 
TABLE OF CONTENTS

About this Prospectus
i
Summary
1
Summary Financial Data
3
Risk Factors
5
Forward-Looking Statements
10
Use of Proceeds
10
Price Range of Our Common Stock
10
Selected Financial Data
11
Management’s Discussion and Analysis of Financial Conditions and Results of Operations
13
Business
19
Management
21
Security Ownership of Executive Officers, Directors and Beneficial Owners of Greater than 5% of Our Common Stock
24
Selling Stockholders and Plan of Distribution
25
Related Party and Other Material Transactions
30
Description of Capital Stock
31
Shares Eligible for Future Sale
32
Experts
32
Legal Matters
33
Where You Can Find More Information
33


ABOUT THIS PROSPECTUS
 
You should rely only on the information contained in this prospectus as we have not authorized any other person to provide you with different information.  If anyone provides you with different or inconsistent information, you should not rely on it.  We are not making an offer to sell these securities in any jurisdiction where such an offer or sale is not permitted.
 
 
 
 
 
i

SUMMARY
 
This summary highlights material information regarding our company and the offering contained in this prospectus.  However, you should read the entire prospectus carefully, including the financial information and related notes, before making an investment decision.
 
Business and History

Organic Alliance, Inc. is a development stage food broker focused on the worldwide sourcing and marketing of organic ingredients and various organically grown and certified produce items.  We do not intend to purchase, warehouse and resell products; rather, we intend to arrange for the delivery of products from growers with whom we seek to have production contracts directly to retailers, food processors and food products manufacturers with whom we intend to negotiate sales of the products under purchase orders.  We have not signed supply agreements to date with growers and have no supply agreements or agreements to sell our sourced products to retailers.

We intend to source and sell high quality organic ingredients from around the world. We also intend to arrange futures positions of organic crops from suppliers in countries such as China, Thailand, India, Sri Lanka, Turkey, Argentina, Chile, South Africa, Mexico and the U.S. for sale of the products to retail customers in the U.S. and internationally, where appropriate.  The organic products we intend to sell will include fresh fruit and vegetables, rice, sunflower seed oil, coffee, tea, seeds, spices, herbs, dried fruits, juices, potatoes, tomatoes, juice concentrates, poultry and beef. We have no supply agreements and have not arranged any futures positions for organic crops.

We were organized as NB Design & Licensing, Inc., (“NB Design”) a Nevada corporation, in September 2001.  To date, we have not realized any revenue and are in the development stage. Our former parent, New Bridge Products, Inc., was originally incorporated in August 1995 as a manufacturer of minivans and filed a petition in bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.  Its Plan of Reorganization was approved by the U.S. Bankruptcy Court for the District of Arizona in September 2002 and we were discharged from bankruptcy in October 2002.

On April 29, 2008, we entered into and closed an Agreement Concerning the Exchange of Securities (“Exchange Agreement”) between us and Organic Alliance, Inc., a Texas corporation (“Organic Texas”), and the Security Holders of Organic Texas (the “Securities Exchange”).  Pursuant to the Securities Exchange, we issued 9,299,972 shares of our Common Stock for all of the issued and outstanding Common Stock of Organic Texas. We also issued 1,000,028 each of Class A, Class B, Class C, Class D, Class E and Class F warrants.  The warrants were exercisable at $2.00, $2.00, $4.00, $4.00, $6.00 and $6.00, respectively, at any time until December 31, 2008.  As part of the Exchange Agreement, the exercise prices of the warrants was subsequently reduced to $1.00 per share for all classes of Warrants and the expiration date was extended to December 31, 2011.  In exchanged for the exercise price reduction, the holders of at least 80% of the Warrants agreed to a call provision by us on 10 days’ notice to them if (i) the bid price of our common stock is quoted at $1.25 per share or higher and the average share volume exceeds 300,000 shares for at least one day, and (ii) the shares underlying the warrants are subject to a current registration statement on file with the Securities and Exchange Commission.  Both the share price and volume must be met on the same day for the call provision to be effective.  Prior to closing the Exchange Agreement, we had 1,200,028 shares of Common Stock outstanding and following the closing we had 10,000,000 shares outstanding.

-1-

On June 2, 2008, we changed our name to Organic Alliance, Inc.  All references throughout this prospectus to “Organic Alliance, Inc.,” or the “Company” refers to the combined operations of Organic Alliance, Inc., a Nevada corporation, and our wholly-owned subsidiary, Organic Texas.
 
On August 11, 2008, we announced that we elected to implement the GS1 System to track our produce in order to improve traceability and consumer safety. GS1 is a global organization with an integrated system of standards that provides accurate identification of products and locations through the use of standards, barcodes and Electronic Product Code/Radio Frequency Identification (EPC/RFID) tags. The GS1 System can play a vital role in product recalls, because it enables product traceability. GS1 standards make traceability systems possible on a global scale across the supply chain.

The Offering

Common stock outstanding prior
    to and after the offering(1):
 
 
13,053,097 shares of Common Stock
     
Use of proceeds:
 
We will not receive any proceeds from the sale of the Common Stock.  Any proceeds from the exercise of warrants will be added to our working capital.
____________________
(1)           Excluding 6,000,168 shares issuable upon exercise of common stock purchase warrants.

Description of Selling Stockholders
 
                   Through this prospectus, we are registering for resale (i) 10,325,468 shares of our Common Stock which we issued to acquire all of the outstanding Common Stock of Organic Texas, and (ii) 6,000,168 shares of Common Stock underlying common stock purchase warrants.  We refer to the Common Stockholders and warrant holders collectively as “selling stockholders.”
 
The names and share amounts of the selling stockholders are set forth under “Selling Stockholders and Plan of Distribution” in this prospectus.  None of the selling stockholders are officers, directors or 10% or greater stockholders of our company except Thomas Morrison, Alicia Smith Kriese, James Harold Haworth, Mathis Family Partners, Benny Doro and Lazzeri Family Trust, and none are affiliated or associated with any broker-dealers.
 
 
 
 
 
 
 
 
-2-

SUMMARY FINANCIAL DATA

The following summary financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements and related notes.  This financial information is derived from our NB Design audited financial statements for the years ended December 31, 2007 and 2006 and unaudited financial statements for the three months ended March 31, 2008 and the unaudited Organic Texas financial data for the period from February 14, 2008 (inception) through March 31, 2008, contained elsewhere herein.  Also included are the unaudited pro forma financial data for Organic Alliance, Inc. derived from the combined NB Design audited financial statements for the years ended December 31, 2007 and 2006, our unaudited financial statements for the three months ended March 31, 2008 and the unaudited Organic Texas financial data for the period from February 14, 2008 (inception) through March 31, 2008.  These statements represent the NB Design & Licensing, Inc. financial position prior to closing of the Exchange Agreement on April 29, 2008.

Statement of Operations Data - NB Design

   
Three Months Ended
March 31, 2008
   
Year Ended
December 31, 2007
   
Year Ended
December 31, 2006
 
Revenue
  $ -0-     $ -0-     $ -0-  
Net loss
  $ (11,714 )   $ (9,273 )   $ (4,000 )
Net loss per share
    of Common Stock
  $ (.01 )   $ (.01 )   $ (.00 )

Balance Sheet Data - NB Design

   
As of
March 31, 2008
   
As of
December 31, 2007
 
Working capital
  $ 29,088     $ (9,198 )
Total assets
  $ 49,409     $ 227  
Total liabilities
  $ 20,321     $ 9,425  
Accumulated deficit
  $ (42,053 )   $ (30,339 )
Stockholders’ equity
  $ 29,088     $ (9,198 )

Statement of Operations Data - Organic Texas

   
February 14, 2008 (inception) through
March 31, 2008
 
Revenue
  $ -0-  
Net (loss)
  $ (2,670,057 )
Net (loss) per share
    of Common Stock
  $ (.28 )
 
 
-3-

Balance Sheet Data – Organic Texas

   
As of
March 31, 2008
 
Working capital
  $ 338,391  
Total assets
  $ 347,851  
Total liabilities
  $ 9,460  
Accumulated deficit
  $ (2,670.057 )
Stockholders’ equity
  $ 338,391  

Pro forma Statement of Operations Data – Organic Alliance, Inc.

   
Three Months Ended
March 31, 2008
   
Year Ended
December 31, 2007
   
Year Ended
December 31, 2006
 
Revenue
  $ -0-     $ -0-     $ -0-  
Net (loss)
  $ (2,681,771 )   $ (9,273 )   $ (4,000 )
Net (loss) per share
    of Common Stock
  $ (.27 )   $ (.01 )   $ (.00 )

Pro forma Balance Sheet Data – Organic Alliance, Inc.

   
As of
March 31, 2008
   
As of
December 31, 2007
 
Working capital
  $ 367,479     $ (9,198 )
Total assets
  $ 382,260     $ 227  
Total liabilities
  $ 14,781     $ 9,425  
Accumulated deficit
  $ (2,712,110 )   $ (30,339 )
Stockholders’ equity
  $ 367,479     $ (9,198 )
 
 
 
 

 
-4-

RISK FACTORS
 
                   The shares of Common Stock offered by this prospectus involve a high degree of risk and represent a highly speculative investment.  You should not purchase these shares if you cannot afford the loss of your entire investment.  In addition to the other information contained in this prospectus, you should carefully consider the following risk factors in evaluating our company, our business prospects and an investment in our shares of Common Stock.

 
Risks Related to Our Company
 
Our inability to contract for organic products with growers and sell the food products to retailers will reduce or eliminate our revenue.
 
In order to generate revenue, we will be required to source organic food products from growers and sell the food products to retailers.  If we are unable to obtain such organic food products from growers or sell the products to retailers, we will not be able to generate sufficient revenue to remain in business.
 
Our products may be subject to recall, exposing us to significant liabilities.
 
Our organic food products may be subject to recall due to the existence of disease or other conditions in connection with the growing or processing of the products, which could result in harm to the end user consumer.  Any such recall or harm to a consumer would subject us to significant financial liability.  We do not carry liability insurance for such recalls.
 
We have no written agreements with retailers or growers.
 
We seek to sell products under purchase orders, and we generally have no agreements with or commitments from our customers for the purchase of products. We cannot assure you that our customers will order products from us or that we will be able to generate a customer base. Moreover, we have no written agreements with growers to purchase products from them and can give no assurance that we can develop sufficient product supplies to satisfy any future customers.
 
Our profit margins may decrease due to consolidation in the grocery industry.
 
The grocery distribution industry generally is characterized by relatively high volume with relatively low profit margins. The continuing consolidation of retailers in the natural and organic products industry, the growth of large national food chains and increased prices requested by growers may reduce our profit margins in the future and cause us to experience pricing pressures from both ends of our supply chain.
 
We have significant competition from a variety of sources, which could reduce our revenue and any profitability.
 
We operate in competitive markets, and our future success will be largely dependent on our ability to provide quality products and services at competitive prices. Our competition comes from a variety of sources, including other distributors of organic products as well as specialty grocery and mass market grocery distributors. We cannot assure you that mass market grocery distributors such as United Natural Foods, Inc. and Tree of Life Distribution, Inc. will not increase their emphasis on organic products and more directly compete with us or that new competitors will not enter the market. These distributors have been in business longer than we have, have substantially greater financial and other resources than we have and are better established in their markets. We cannot assure you that our current or potential competitors will not provide services comparable or superior to those provided by us or adapt more quickly than we do to evolving industry trends or changing market requirements. It is also possible that alliances among competitors may develop and rapidly acquire significant market share or that certain of our customers will increase distribution to their own retail facilities. Increased competition may result in price reductions, reduced gross margins and loss of market share, any of which could materially adversely affect our business, financial condition or results of operations. We cannot assure you that we will be able to compete effectively against current and future competitors.
 
-5-


 
Our operations are sensitive to economic downturns, which could reduce our revenue and any profitability.
 
The grocery industry is sensitive to national and regional economic conditions and the demand for our products may be adversely affected from time to time by economic downturns. In addition, our operating results are particularly sensitive to, and may be materially adversely affected by:
 

 
difficulties with the collectability of accounts receivable;
 
difficulties with inventory control;
 
competitive pricing pressures; and
 
unexpected increases in fuel or other transportation-related costs.
 

 
Our future operating results are subject to significant fluctuations which could have a negative effect on our stock price and any analysis of our future operating results.
 
Our future operating results may vary significantly from period to period due to:
 

 
demand for organic products;
 
changes in our operating expenses, including fuel and insurance;
 
changes in customer preferences and demands for organic products, including levels of enthusiasm for health, fitness and environmental issues;
 
fluctuation of organic product prices due to competitive pressures;
 
personnel changes;
 
supply shortages;
 
general economic conditions;
 
lack of an adequate supply of high-quality agricultural products due to poor growing conditions, natural disasters or otherwise; and
 
volatility in prices of high-quality agricultural products resulting from poor growing conditions, natural disasters or otherwise.
 

 
Due to the foregoing factors, we believe that period-to-period comparisons of our operating results may not necessarily be meaningful and that such comparisons cannot be relied upon as indicators of future performance.
 

-6-

 

 
We are subject to significant governmental regulation which can increase our costs, timing of products to market and profitability.
 
Our business is highly regulated at the federal, state and local levels and our products and distribution operations require various licenses, permits and approvals. In particular:
 

 
our products are subject to inspection by the U.S. Food and Drug Administration;
 
any warehouse and distribution facilities we may use will be subject to inspection by the U.S. Department of Agriculture and state health authorities;
 
the U.S. Department of Transportation and the U.S. Federal Highway Administration regulate our trucking operations or those of our contractors; and
 
our products must be certified as organic by United States Department of Agriculture.

 
The loss or revocation of any existing licenses, permits, certifications or approvals or the failure to obtain any additional licenses, permits or approvals in new jurisdictions where we intend to do business could reduce our revenue, increase our costs, affect the timing of our products going to market and reduce any profitability.
 
We are dependent for success on Thomas Morrison, our Chief Executive Officer.  Our inability to retain Mr. Morrison’s services would impede our operations and growth strategy, which would have a negative impact on the business and the value of your investment.
 
Our success is largely dependent on the skills, experience and efforts of Thomas Morrison, our Chief Executive Officer.  The loss of Mr. Morrison would have a material adverse effect upon our growth strategy, operations and future business development, and therefore the value of your investment.  We do not maintain key-man life insurance on any executive officers nor do we have an employment agreement with Mr. Morrison.  Additionally, any failure to attract and retain qualified employees in the future could also negatively impact our business strategy.
 
We will need to raise additional capital in order to continue our operations, which will dilute the ownership interests of existing shareholders and cause the issuance of securities with preferences and privileges superior to our Common Stock.
 
We will need to raise additional funds in the future in order to continue our operations and source organic food products from growers.  If additional funds are raised through the issuance of equity or convertible debt securities, the percentage ownership of the current stockholders of the Company will be reduced, stockholders may experience additional dilution and such securities may have rights, preferences and privileges senior to those of the Common Stock and may have covenants which impose restrictions on the Company’s operations.
 
Risks Relating to Our Securities
 
Insiders have substantial control over us, and they could delay or prevent a change in our corporate control even if our other stockholders wanted it to occur.
 
Our executive officers, directors and 5% or greater stockholders own 8,197,800 shares of our Common Stock or approximately 63% of our outstanding Common Stock. Accordingly, these individuals will be able to control all matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions. This could delay or prevent an outside party from acquiring or merging with us even if our other stockholders wanted it to occur.
 
-7-

Our Common Stock is subject to the penny stock regulations and restrictions, which could impair our liquidity and make trading difficult.
 
SEC Rule 15g-9, as amended, establishes the definition of a “penny stock” as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to a limited number of exceptions. Our shares are considered to be penny stock. This classification could severely and adversely affect the market liquidity for our Common Stock.
 
For any transaction involving a penny stock, unless exempt, the penny stock rules require that a broker or dealer approve a person’s account for transactions in penny stock and the broker or dealer receive from the investor a written agreement to the transaction setting forth the identity and quantity of the penny stock to be purchased. To approve a person’s account for transactions in penny stock, the broker or dealer must obtain financial information and investment experience and objectives of the person and make a reasonable determination that the transactions in penny stock are suitable for that person and that that person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stock.
 
The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prepared by the SEC relating to the penny stock market, which, in highlight form, sets forth:
 
 
·
the basis on which the broker or dealer made the suitability determination, and
 
 
·
that the broker or dealer received a signed, written agreement from the investor prior to the transaction.
 
 
Disclosure also has to be made about the risks of investing in penny stock in both public offerings and in secondary trading and commission’s payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stock.
 
 
Because of these regulations, broker-dealers may not wish to engage in the above-referenced necessary paperwork and disclosures and/or may encounter difficulties in their attempt to sell shares of our Common Stock, which may affect the ability of selling stockholders or other holders to sell their shares in any secondary market and have the effect of reducing the level of trading activity in any secondary market. These additional sales practice and disclosure requirements could impede the sale of our securities, if and when our securities become publicly traded. In addition, the liquidity for our securities may decrease, with a corresponding decrease in the price of our securities. Our shares, in all probability, will be subject to such penny stock rules for the foreseeable future and our stockholders will, in all likelihood, find it difficult to sell their securities.
 
 
The market price of our Common Stock may be volatile.
 
 
The market price of our Common Stock may be highly volatile, as is the stock market in general, and the market for Pink Sheets quoted stocks in particular. Some of the factors that may materially affect the market price of our Common Stock are beyond our control, such as changes in financial estimates by industry and securities analysts, announcements made by our competitors or sales of our Common Stock. These factors may materially adversely affect the market price of our Common Stock, regardless of our performance.
 
-8-

 
 
In addition, the public stock markets have experienced extreme price and trading volume volatility. This volatility has significantly affected the market prices of securities of many companies for reasons frequently unrelated to the operating performance of the specific companies. These broad market fluctuations may adversely affect the market price of our Common Stock.
 
 
We have not paid dividends in the past and do not expect to pay dividends in the future, and any return on investment may be limited to the value of our stock.
 
 
We have never paid any cash dividends on our Common Stock and do not anticipate paying any cash dividends on our Common Stock in the foreseeable future, so any return on investment may be limited to the value of our stock. We plan to retain any future earnings to finance growth.
 
 
Future sales of our Common Stock may depress our stock price.
 
 
Sales of a substantial number of shares of our Common Stock, including shares registered hereby, by significant stockholders into the public market could cause a decrease in the market price of our Common Stock.
 
 
Failure to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could prevent the Company from producing reliable financial reports or identifying fraud.  In addition, shareholders could lose confidence in the Company’s financial reporting, which could have an adverse effect on its stock price.
 
 
Effective internal controls are necessary for us to provide reliable financial reports and effectively prevent fraud, and a lack of effective controls could preclude us from accomplishing these critical functions.  We will be required to document and test our internal control procedures in order to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, which requires annual management assessments of the effectiveness of our internal controls over financial reporting and a report by our independent registered public accounting firm addressing these assessments.  We intend to hire a full time Chief Financial Officer to augment our internal controls procedures and expand our accounting staff, but there is no guarantee that these efforts will be adequate.
 
 
During the course of our testing, we may identify deficiencies which we may not be able to remediate in time to meet the deadline imposed by the Sarbanes-Oxley Act for compliance with the requirements of Section 404.  In addition, if we fail to maintain the adequacy of our internal accounting controls, as such standards are modified, supplemented or amended from time to time, we may not be able to ensure that it can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with Section 404.  Failure to achieve and maintain an effective internal control environment could cause us to face regulatory action and also cause investors to lose confidence in our reported financial information, either of which could have an adverse effect on our stock price.
 
 

 
-9-

There is a reduced probability of a change of control or acquisition of us due to the possible issuance of additional preferred stock.  This reduced probability could deprive our investors of the opportunity to otherwise sell our stock in an acquisition of us by others.
 
                   Our Articles of Incorporation authorize our Board of Directors to issue up to 10,000,000 shares of preferred stock, of which no shares have been issued.  Our preferred stock is issuable in one or more series and our Board of Directors has the power to fix the rights, preferences, privileges and restrictions thereof, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, liquidation preferences and the number of shares constituting any series or designation of such series, without further vote or action by stockholders.  As a result of the existence of this “blank check” preferred stock, potential acquirers of our company may find it more difficult to, or be discouraged from, attempting to effect an acquisition transaction with, or a change of control of, our company, thereby possibly depriving holders of our securities of certain opportunities to sell or otherwise dispose of such securities at above-market prices pursuant to such transactions.

 FORWARD-LOOKING STATEMENTS
 
                   This prospectus includes forward-looking statements.  We have based these forward-looking statements on our current expectations about future events.  These forward-looking statements are subject to risks, uncertainties and assumptions about us which are discussed in the “Risk Factors” section above and throughout this prospectus.  In light of these risks, uncertainties and assumptions, any forward-looking events discussed in this prospectus might not occur.

USE OF PROCEEDS
 
                   We will not receive any proceeds from the sale of shares of our Common Stock being offered by the selling stockholders.  Any proceeds from the exercise of our warrants will be added to our working capital.

PRICE RANGE OF OUR COMMON STOCK

Our Common Stock was quoted on the Pink Sheets under the symbol “NBDL” from September 2006 until June 11, 2008, when our symbol was changed to “ORGC.”  However, during this period of time, no trading market developed for the Common Stock.

On June 11, 2008, trading commenced in our Common Stock under the symbol “ORGC”. The chart below sets forth the closing prices for our Common Stock for the periods indicated as quoted by the Pink Sheets and does not include markups, markdowns or discounts between dealers.

   
Closing Price
 
       
Quarter Ended March 31, 2008
  $ 0.30  
Quarter Ended June 30, 2008
  $ 1.01  

As of March 31, 2008, we had approximately 105 stockholders of record.
 
 
 
 
-10-

SELECTED FINANCIAL DATA

The following summary financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements and related notes.  This financial information is derived from our NB Design audited financial statements for the years ended December 31, 2007 and 2006 and unaudited financial statements for the three months ended March 31, 2008 and the unaudited Organic Texas financial data for the period from February 14, 2008 (inception) through March 31, 2008, contained elsewhere herein.  Also included are the unaudited pro forma financial data for Organic Alliance, Inc. derived from the combined NB Design audited financial statements for the years ended December 31, 2007 and 2006 our unaudited financial statements for the three months ended March 31, 2008 and the unaudited Organic Texas financial data for the period from February 14, 2008 (inception) through March 31, 2008.  These statements represent the NB Design & Licensing, Inc. financial position prior to closing of the Exchange Agreement, on April 29, 2008.

Statement of Operations Data - NB Design

   
Three Months Ended
March 31, 2008
   
Year Ended
December 31, 2007
   
Year Ended
December 31, 2006
 
Revenue
  $ -0-     $ -0-     $ -0-  
Net loss
  $ (11,714 )   $ (9273 )   $ (4,000 )
Net loss per share
    of Common Stock
  $ (.01 )   $ (.01 )   $ (.00 )

Balance Sheet Data - NB Design

   
As of
March 31, 2008
   
As of
December 31, 2007
 
Working capital
  $ 29,088     $ (9,198 )
Total assets
  $ 49,409     $ 227  
Total liabilities
  $ 20,321     $ 9,425  
Accumulated deficit
  $ (42,053 )   $ (30,339 )
Stockholders’ equity
  $ 29,088     $ (9,198 )

Statement of Operations Data - Organic Texas

   
February 14, 2008 (inception) through
March 31, 2008
 
Revenue
  $ -0-  
Net (loss)
  $ (2,670,057 )
Net (loss) per share
    of Common Stock
  $ (.28 )
 
 
-11-

Balance Sheet Data – Organic Texas

   
As of
March 31, 2008
 
Working capital
  $ 338,391  
Total assets
  $ 347,851  
Total liabilities
  $ 9,460  
Accumulated deficit
  $ (2,670.057 )
Stockholders’ equity
  $ 338,391  

Pro forma Statement of Operations Data – Organic Alliance, Inc.

   
Three Months Ended
March 31, 2008
   
Year Ended
December 31, 2007
   
Year Ended
December 31, 2006
 
Revenue
  $ -0-     $ -0-     $ -0-  
Net (loss)
  $ (2,681,771 )   $ (9,273 )   $ (4,000 )
Net (loss) per share
    of Common Stock
  $ (.27 )   $ (.01 )   $ (.00 )

Pro forma Balance Sheet Data – Organic Alliance, Inc.

   
As of
March 31, 2008
   
As of
December 31, 2007
 
Working capital
  $ 367,479     $ (9,198 )
Total assets
  $ 382,260     $ 227  
Total liabilities
  $ 14,781     $ 9,425  
Accumulated deficit
  $ (2,712,110 )   $ (30,339 )
Stockholders’ equity
  $ 367,479     $ (9,198 )
 
 
 
 

 
-12-


MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

Cautionary Statement Regarding Forward-Looking Statements

Forward-Looking Statement and Information

This prospectus may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management and information currently available to management.  The use of words such as “believe,” “anticipates,” “intends, “plans,” “estimates,” “should,” “likely,” or similar expressions, indicates a forward-looking statement.

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Many of the factors that will determine these results are beyond our ability to control or predict.  Unit holders are cautioned not to put undue reliance on any forward-looking statements. We claim the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions, which are not statements of historical facts.  These statements are subject to uncertainties and risks including, but not limited to, changes in technology, economic conditions, competition and pricing, and government regulations.  We caution that assumptions, expectations, projections, intentions, or beliefs about the future events may, and often do, vary from actual results and the differences can be material.  Key factors which could cause actual results to vary from those the Company expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of financing or other capital, as well as uncertainties in estimating proved reserves, forecasting production and drilling results, and uncertainties regarding environmental regulations and litigation.
 

 
Overview

Organic Alliance, Inc. is a development stage food broker focused on the worldwide sourcing and marketing of organic ingredients and various organically grown and certified produce items.  We do not intend to purchase, warehouse and resell products; rather, we intend to arrange for the delivery of products from growers with whom we seek to have production contracts directly to retailers, food processors and food products manufacturers with whom we intend to negotiate sales of the products under purchase orders.  We have not signed supply agreements to date with growers and have no supply agreements or agreements to sell our sourced products to retailers.

We intend to source and sell high quality organic ingredients from around the world. We also intend to arrange futures positions of organic crops from suppliers in countries such as China, Thailand, India, Sri Lanka, Turkey, Argentina, Chile, South Africa, Mexico and the U.S. for sale of the products to retail customers in the U.S. and internationally, where appropriate.  The organic products we intend to sell will include fresh fruit and vegetables, rice, sunflower seed oil, coffee, tea, seeds, spices, herbs, dried fruits, juices, potatoes, tomatoes, juice concentrates, poultry and beef. We have no supply agreements and have not arranged any futures positions for organic crops.
 
 
 
 
-13-

We were organized as NB Design & Licensing, Inc., a Nevada corporation, in September 2001.  To date, we have not realized any revenue and are in the development stage. Our former parent, New Bridge Products, Inc. (“NBPI”), was originally incorporated in August 1995 as a manufacturer of custom minivans and filed a petition in bankruptcy under Chapter 11 of the U.S. Bankruptcy Code, which included our company as a then wholly-owned subsidiary. NBPI’s Plan of Reorganization was approved by the U.S. Bankruptcy Court for the District of Arizona in September 2002 and we were discharged from bankruptcy with it in October 2002.

On April 29, 2008, we entered into and closed an Agreement Concerning the Exchange of Securities (“Exchange Agreement”) between us and Organic Alliance, Inc., a Texas corporation (“Organic Texas”), and the Security Holders of Organic Texas (the “Securities Exchange”).  Pursuant to the Securities Exchange, we issued 9,299,972 shares of our Common Stock for all of the issued and outstanding Common Stock of Organic Texas. We also issued 1,000,028 each of Class A, Class B, Class C, Class D, Class E and Class F warrants.  The warrants were exercisable at $2.00, $2.00, $4.00, $4.00, $6.00 and $6.00, respectively, at any time until December 31, 2008.  As part of the Exchange Agreement, the exercise prices of the warrants was subsequently reduced to $1.00 per share for all classes of Warrants and the expiration date was extended to December 31, 2011.  In exchanged for the exercise price reduction, the holders of at least 80% of the Warrants agreed to a call provision by us on 10 days’ notice to them if (i) the bid price of our common stock is quoted at $1.25 per share or higher and the average share volume exceeds 300,000 shares for at least one day, and (ii) the shares underlying the warrants are subject to a current registration statement on file with the Securities and Exchange Commission.  Both the share price and volume must be met on the same day for the call provision to be effective.  Prior to closing the Exchange Agreement, we had 1,200,028 shares of Common Stock outstanding and following the closing we had 10,000,000 shares outstanding.

On June 2, 2008, we changed our name to Organic Alliance, Inc.
 
On August 11, 2008, we announced that we have elected to implement the GS1 System to track our produce in order to improve traceability and consumer safety. GS1 is a global organization with an integrated system of standards that provides accurate identification of products and locations through the use of standards, barcodes and Electronic Product Code/Radio Frequency Identification (EPC/RFID) tags. The GS1 System can play a vital role in product recalls, because it enables product traceability. GS1 standards make traceability systems possible on a global scale across the supply chain.

We currently generate no sales, income or cash flows.
 

 
Critical Accounting Policies and Estimates
 
Use of Estimates
 
Our discussion and analysis of financial condition and results of operations are based upon our audited and unaudited financial statements, which have been prepared in accordance with US GAAP. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the following: the amount of uncollectible accounts receivable, the amount to be paid for the settlement of liabilities for services included in cost of sales and accounts payable, the amount to be paid for tax liabilities, accrued expenses, and the estimated useful lives for amortizable property and equipment. Actual results could differ from those estimates.
 
Making estimates with respect to cost of sales requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results regarding estimates in the cost of sales could differ materially from our estimates. 

 
-14-

Allowance for Doubtful Accounts
 
We do not currently have any trade receivables. Once operations begins we will maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. A considerable amount of judgment is required in assessing the ultimate realization of these receivables, including the current credit-worthiness of each customer. We will record an allowance for doubtful account should the financial condition of our customers deteriorate, resulting in an impairment of their ability to make payments.
 
 
Property and Equipment
 
We currently do not own any property and equipment.  Property and equipment will be stated at cost, net of accumulated depreciation and amortization. Property and equipment will be depreciated on a straight-line basis over the estimated useful lives of the assets.
 
 
Income Taxes
 
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
 

Results of Operations for NB Design
 
Results of operations for the three months ended March 31, 2008
 
Revenue. No revenue was recorded for the three months ended March 31, 2008.

Expenses. General and administrative expenses were $11,714 for the three months ended March 31, 2008. General and administrative expenses related primarily to legal, accounting and management fees expended to prepare us for the acquisition of Organic Texas on April 29, 2008.

Net (Loss). Net loss was $11,714 for the three months ended March 31, 2008. The net loss consisted of general and administrative expenses described above.
 
Results of operations for the year ended December 31, 2007 compared to the year ended December 31, 2006
 
Revenue. There was no revenue for the year ended December 31, 2007 or 2006.
 
Expenses. General and administrative expenses were $9,273 for the year ended December 31, 2007; an increase of $5,273, or 132%, from the general and administrative expenses of $4,000 for the year ended December 31, 2006. The increase in general and administrative expenses was primarily attributable to other expenses paid by us.
  
Net (Loss). Net loss was $9,273 for the year ended December 31, 2007 compared to $4,000 for the year ended December 31, 2006. The $5,273 increase in net loss was primarily attributable to the increased expenses discussed above.
 
-15-

Liquidity and Capital Resources for NB Design
 
We are a start-up, development stage company and have not generated revenue from our business operations. Our operations to date have generated minimal losses that have been funded through the expenses paid by stockholders and donated to the company and the issuance of common stock. We will require additional sources of outside capital to continue our operations. We expect that our primarily source of cash in the future will be from the issuance of common stock.
 
Our financial statements contained within have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. For the three months ended March 31, 2008, we reported a net loss of $11,714 and have an accumulated deficit as of March 31, 2008 of $42,053. The Report of Independent Registered Public Accounting Firm on our financial statements as of and for the year ended December 31, 2007 includes a “going concern” explanatory paragraph which means that the auditors expressed substantial doubt about our ability to continue as a going concern.
 
At March 31, 2008, we had $5,321 in accounts payable and an advance due to Organic Texas in the amount of $15,000.
 
In February 2008 we sold 200,000 shares of our common stock to two investors for $0.25 per share.

During March 2008, Organic Texas made a $15,000 advance to us to help fund the business.
 
During March and April 2008, we issued 601,666 shares of our Common Stock for $0.30 per share to a group of nine investors.

During May 2008, we sold 16,666 shares of our Common Stock for $0.30 per share to one investor and 2,500,000 shares of our Common Stock for $0.40 per share to two investors.
 
We have limited funding available for marketing and will rely solely on our ability to raise debt or equity funds in the immediate future.

Net Cash Flows for NB Design
 
Net cash provided in operating activities for the year ended December 31, 2007 was $227 compared to -0- cash used in operating activities during 2006. Net cash used in operating activities for the three months ended March 31, 2008 was $818, primarily attributable to the $15,818 of legal, accounting and management fees offset by a $15,000 advance from Organic Texas discussed above.
 
Net cash provided from investing activities was -0- for the years ending December 31, 2007 and 2006. For the three months ending March 31, 2008, net cash provided by investing activities was $50,000 from the sale proceeds of 200,000 shares of our commons stock discussed above.
 
Net cash provided by financing activities was -0- for the years ending December 31, 2007 and 2006 and -0- for the three months ended March 31, 2008.
 
-16-

Results of Operations for Organic Texas
 
Results of operations for the period from February 14, 2008 (inception) to March 31, 2008 for Organic Texas
 
Revenue. There was no revenue for the period from February 14, 2008 (inception) to March 31, 2008.

Expenses. General and administrative expenses were $2,670,013 for the period from February 14, 2008 (inception) to March 31, 2008. General and administrative expenses related primarily to legal, accounting, investor relations, public relations, web development, stock based compensation and administrative costs. These expenses are primarily composed of 6,193,160 shares of common stock issued to consultants to perform the services described above and 3,500,000 shares of common stock issued to officers and directors of Organic Texas.

Interest Expense. Interest expense of $44 was paid on a time note payable to a related party.

Net (Loss). Net loss was $2,670,057 for the period from February 14, 2008 (inception) to March 31, 2008. The net loss consisted of general and administrative expenses described above.
 
Liquidity and Capital Resources for Organic Texas
 
Organic Texas is a start-up, development stage company and has not generated revenue from business operations. Operations to date have generated substantial losses that have been funded through the issuance of common stock.  Organic Texas was acquired by NB Design on April 29, 2008 and ceased operations.   Its operating results were consolidated with NB Design.
 
The Organic Texas financial statements contained within have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. For the three months ended March 31, 2008, we reported a net loss of $2,670,057 since inception on February 14, 2008.  Organic Texas has $93,500 on hand as of March 31, 2008. 

At March 31, 2008, Organic Texas had $991 in accounts payable and $8,469 in a short term note payable to a related party.

In March 2008, William Gallagher, then an officer of Organic Texas, advanced it $15,000. The advance is evidenced by a time note bearing interest at 8% per annum on any unpaid balance.  The unpaid balance including interest was $8,469 at March 31, 2008.

In March 2008 Organic Texas sold 335,000 shares of its common stock to three investors for $0.30 per share.

We have limited funding available for marketing and rely solely on our parent for funding.

-17-

Net Cash Flows for Organic Texas
 
 Net cash used in operating activities for the period from inception on February 14, 2008 to March 31, 2008 was $15,419. Net cash used was primarily attributable to a cash advance to NB Design.
 
Net cash provided from investing activities was $108,969 for the period from inception on February 14, 2008 to March 31, 2008.  Net cash provided by investing activities was $100,500 from the sale proceeds of 335,000 shares of Organic Texas’s common stock and $8,469 from a related party loan discussed above.
 
Net cash provided by financing activities was -0- for the period from inception on February 14, 2008 to March 31, 2008.

 

 

 

 

 

 
 

 
-18-


BUSINESS
 
Introduction

Organic Alliance, Inc. is a development stage food broker focused on the worldwide sourcing and marketing of organic ingredients and various organically grown and certified produce items.  We do not intend to purchase, warehouse and resell products; rather, we intend to arrange for the delivery of products from growers with whom we seek to have production contracts directly to retailers, food processors and food products manufacturers with whom we intend to negotiate sales of the products under purchase orders.  We have not signed supply agreements to date with growers and have no supply agreements or agreements to sell our sourced products to retailers.

The U.S. organic industry grew 21% to reach $17.7 billion in consumer sales in 2006 according to the Organic Trade Association. The term organic is defined by the Organic Trade Association as a commitment to agricultural (including processing) practices that strive for a balance with nature using methods and materials which are of low impact to the environment.  “Organic” is a labeling term that denotes products produced under the authority of the Federal Organic Foods Protection Act.  The principle guidelines for organic production are to use materials and practices that enhance the ecological balance of natural systems and that integrate the parts of the farming system into the ecological whole.  Organic agricultural practices cannot ensure that products are completely free of residues; however, methods are used to minimize pollution from air, soil and water.

Organic food handlers, processors and retailers adhere to standards that maintain the integrity of organic agricultural products.  The primary goal of organic agriculture is to optimize the health and productivity of interdependent communities of soil life, plants, animals and people. The organic certification agencies that are currently listed on the U.S. Department of Agriculture (“USDA”) web site may be found at www.ams.usda.gov/nop are:

·
must be accredited by the USDA for U.S. consumption (95 currently);
·
must adhere to National Organic Program (“NOP”) regulations; and
·
must accept each others’ certifications.

All organic production is regulated by the USDA under the 2002 Federal NOP (Title 7 CFR205) which regulates organic producers and organic handlers.Requirements for organic producers (growers) are:

·
The ground is “certified transitional” in the interim;
 
·
Organic crops must be grown without the use of:
 
 
·
synthetic fertilizers;
 
·
synthetic pesticides;
 
·
sewage sludge;
 
·
genetically modified organisms (“GMOs”); or
 
·
treated seeds.
·
Any applied materials must be allowed on the National List of Allowed and Prohibited Substances of the Organic Materials Review Institute (“OMRI”);
·
Must use organic seeds if “commercially available”; and
 
·
Must be certified by a USDA accredited certifying organization as complying with NOP regulations.
 
 
 
 
 

 
-19-

According to the Organic Trade Association, Organic foods, the largest segment of organic products, had total sales of $16.7 billion in 2006 and made up over 95% of all organic product sales.  Organic foods are one of the fastest growing market segments within the food industry, with sales growing at an annual rate of 20.9% in 2006.  In fact, organic food sales have enjoyed double-digit growth for the past 17 years.

Sales and Marketing

Due to the increase in demand for organic products, ingredient sourcing departments in corporations are seeking additional sources of organic products.  Because of the restrictions placed on farming practices in order to become organic, we believe there is a supply shortage which is forcing buyers to search worldwide for organic ingredients.  Many produce suppliers stateside are attempting to fill this gap, but it is very fractionalized and as a result, very difficult for ingredient buyers to get a reliable, ongoing supply they can count on for product introductions.

At present there are few organic brands but we believe brand growth will expand over time.  Accordingly, we believe there is demand for a company that has a dependable, reliable source of organic food product production to enter this market.  Our initial sales and marketing efforts will be aimed at two primary channels of distribution: grocery and ingredient.  The grocery channel will focus on fresh organic farm produced items sold to food retailers.  The ingredient channel will focus on the large packaged goods companies such as Unilever, General Mills, Campbell Soup and Kraft type companies who use organic ingredients.  Initial products will include fruits, vegetables, rice, sunflower oil, coffee, tea, spices, herbs and seeds.

Competition

We operate in competitive markets, and our future success will be largely dependent on our ability to provide quality products and services at competitive prices. Our competition comes from a variety of sources, including other distributors of organic products as well as specialty grocery and mass market grocery distributors. We cannot assure you that mass market grocery distributors such as United Natural Foods, Inc. and Tree of Life Distribution, Inc. will not increase their emphasis on organic products and more directly compete with us or that new competitors will not enter the market. These distributors have been in business longer than we have, have substantially greater financial and other resources than we have and are better established in their markets. We cannot assure you that our current or potential competitors will not provide services comparable or superior to those provided by us or adapt more quickly than we do to evolving industry trends or changing market requirements. It is also possible that alliances among competitors may develop and rapidly acquire significant market share or that certain of our customers will increase distribution to their own retail facilities. Increased competition may result in price reductions, reduced gross margins and loss of market share, any of which could materially adversely affect our business, financial condition or results of operations. We cannot assure you that we will be able to compete effectively against current and future competitors.

Employees

As of June 30, 2008, we had two full time employees, including our executive officer.

Facilities

We lease approximately 2,125 square feet of office space at 1250 NE Loop 410, San Antonio, TX 78209 on a month-to-month basis for $1,500 per month.
 
 
 
-20-

MANAGEMENT
 
Executive Officers and Directors

The names, ages and positions of our directors and executive officers are as follows:

Name of Director
 
Age
 
Position(s) with the Company
 
Director Since
 
Thomas Morrison
 
60
 
Chief Executive Officer, Chief Financial Officer and Director
 
2008
 
James Haworth
 
46
 
Director
 
2008
 
Alicia Smith Kriese
 
44
 
Director
 
2008
 
 
There is no family relationship between any of our directors or executive officers.
 
Thomas Morrison – Chief Executive Officer, Chief Financial Officer and Director
 
Mr. Morrison has over 39 years experience in a wide range of consumer goods industries and corporate farming with CEO/executive level general management and consulting assignments within large public companies (P&G and Pepsi) and private companies. He has held senior leadership positions in the following industries: packaged goods; corporate farming; investment banking; and consumer and technology. From November 1988 to March 1990, he was the Chief Executive Officer of Superior Farming Company, which operated a leading organic farm. From April 1990 to February 1992, he was the President, Chief Executive Officer, Board Member and part owner of Pacific Agriculture Holdings, a $40 million farming and marketing company.  In April 1992 he formed Morrison and Wilson Recycling, Inc., a development and marketing company.  In February 1995 he joined Conwaste Partners as a partner and helped sell the company to Browning-Ferris Industries. From August 1997 to the present, Mr. Morrison has been a partner in the investment banking firm of Morrison Partners, LLC.  The firm specializes in packaged/consumer goods, retail grocery and Internet mergers and acquisitions. Mr. Morrison currently devotes 100 % his time to the Company.

James Haworth – Director

Mr. Haworth spent more than two decades at Bentonville-based Wal-Mart Stores Inc., most recently as executive vice president and chief operating officer for Wal-Mart Stores from August 2001 to December 2004.  From January 2005 to July 2006, Mr. Haworth acted as a marketing consultant through his consulting firm, Business Decisions Inc.  In July 2006 he became the President and CEO of Lotus Supercenters.  Additionally, since August 2002 he has operated a horse and cattle ranch. He is a member of the board of directors of Field2Base, a privately held high-tech mobile communications company based in Raleigh, NC.
 
 Alicia Smith Kriese – Director

Ms. Kriese spent 18 years from 1988 until 2005 with Austin-based advertising agency GSD&M (an Omnicom Company) as executive vice president, where she led the development of national brand strategies, corporate messaging and customer marketing campaigns for Wal-Mart Stores Inc. Since 2005 she has been the president of Perspectives, an Austin-based marketing consulting firm.
 
 

 
-21-

Board of Directors and Committees
 
Board Meetings
 
During calendar 2007, the Board of Directors held two meetings. Each director attended at least seventy-five percent of the aggregate number of meetings of the Board of Directors. We expect each of our directors to attend our Annual Meeting every year, unless extenuating circumstances prevent their attendance.
 
Committees
 
Currently we have no board committees. Our board acts as our Audit, Compensation and Nominating and Governance Committee although we intend to appoint such committees in the future comprised of a majority of members who will be independent directors.
 
Director Compensation
 
We have not paid our directors fees for attending any meetings of our Board of Directors. We reimburse each director for reasonable travel expenses related to such director’s attendance at Board of Directors’ meetings. Our directors were given stock for joining the company. See Executive Compensation below).
 
Director Independence
 
None of our directors are independent under SEC definitions, because they receive compensation from us for consulting services to us.  See Executive Compensation below.

Executive Compensation

We did not pay compensation to any executive officer or director in 2007 and have not made any payments in 2008. We anticipate paying compensation to our executive officers and directors starting in September 2008 as follows:

Name
 
Position
 
Amount of Compensation
 
Consideration
Thomas Morrison(1)
 
Chief Executive Officer,
Chief Financial Officer
and Director
 
 
$150,000
 
Annual Salary
James Haworth(2)
 
Director
 
$  75,000
 
Annual Consulting Fee
 
Alicia Smith Kriese(3)
 
Director
 
$  75,000
 
Annual Consulting Fee
 
William J. Gallagher(4)
 
Consultant
 
$ 75,000
 
Annual Consulting Fee

(1)
Received 1,265,250 shares of the Company’s common stock upon joining us.
(2)
Received 843,500 shares of the Company’s common stock upon joining us.
(3)
Received 843,500 shares of the Company’s common stock upon joining us.
(4)
Received 1,265,250 shares of the Company’s common stock upon joining us.

None of the above individuals has a formal employment or consulting agreement but it is anticipated these agreements will be finalized before September 1, 2008.

-22-

2008 Stock Option Plan

We intend to adopt a stock option plan, which we refer to as our Plan, and which will provide for the grant of options intended to qualify as “incentive stock options” and “non-statutory stock options” within the meaning of Section 422 of the Internal Revenue Code of 1986 together with the grant of bonus stock and stock appreciation rights at the discretion of our Board of Directors. Incentive stock options will be issuable only to our eligible officers, directors and key employees. Non-statutory stock options will be issuable only to our non-employee directors and consultants.

The Plan will be administered by our full Board of Directors, inclusive of the Compensation Committee. We will have 1,000,000 shares of common stock reserved for issuance under the Plan. Under the Plan, the Board will determine which individuals shall receive options, grants or stock appreciation rights, the time period during which the rights may be exercised, the number of shares of common stock that may be purchased under the rights and the option price.

With respect to stock options, the per share exercise price of the common stock will not be less than the fair market value of the common stock on the date the option will be granted. No person who owns, directly or indirectly, at the time of the granting of an incentive stock option, more than 10% of the total combined voting power of all classes of our stock will be eligible to receive incentive stock options under the Plan unless the option price is at least 110% of the fair market value of the common stock subject to the option on the date of grant. The option price for non-statutory options will be established by the Board and will not be less than 100% of the fair market value of the common stock subject to the option on the date of grant.

No options will be transferred by an optionee other than by will or the laws of descent and distribution, and during the lifetime of an optionee, the option will only be exercisable by the optionee. Options will be exercised only if the option holder remains continuously associated with us from the date of grant to the date of exercise, unless extended under the Plan grant. Options under the Plan will be granted within 10 years from the effective date of the Plan and the exercise date of an option will not be later than 10 years from the date of grant. Any options that expire unexercised or that terminate upon an optionee’s ceasing to be employed by us will become available once again for issuance. Shares issued upon exercise of an option will rank equally with other shares then outstanding. Options issued under the plan will vest ratably over a three-year period.

Liability and Indemnification of Officers and Directors
        
Our Articles of Incorporation provide that liability of directors to us for monetary damages is eliminated to the full extent provided by Nevada law.  Under Nevada law, a director is not personally liable to us or our stockholders for monetary damages for breach of fiduciary duty as a director except for liability (i) for any breach of the director’s duty of loyalty to us or our stockholders; (ii) for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law; (iii) for authorizing the unlawful payment of a dividend or other distribution on our capital stock or the unlawful purchases of our capital stock; (iv) a violation of Nevada law with respect to conflicts of interest by directors; or (v) for any transaction from which the director derived any improper personal benefit.
 
 
 

 
-23-

The effect of this provision in our Articles of Incorporation is to eliminate our rights and our stockholders’ rights (through stockholders’ derivative suits) to recover monetary damages from a director for breach of the fiduciary duty of care as a director (including any breach resulting from negligent or grossly negligent behavior) except in the situations described in clauses (i) through (v) above.  This provision does not limit or eliminate our rights or the rights of our security holders to seek non-monetary relief, such as an injunction or rescission, in the event of a breach of a director’s duty of care or any liability for violation of the federal securities laws.

Insofar as indemnification for liabilities arising under the Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.

SECURITY OWNERSHIP OF EXECUTIVE OFFICERS, DIRECTORS AND
BENEFICIAL OWNERS OF GREATER THAN 5% OF OUR COMMON STOCK

                   As of the date of this prospectus, there are 13,053,967 shares of Common Stock outstanding.  The following table sets forth certain information regarding the beneficial ownership of the outstanding shares as of the date of this prospectus by (i) each person who is known by us to own beneficially more than 5% of our outstanding Common Stock; (ii) each of our executive officers and directors; and (iii) all of our executive officers and directors as a group.  Except as otherwise indicated, each such person has investment and voting power with respect to such shares, subject to community property laws where applicable.  The address of our executive officers and directors is in care of us at 1250 NE Loop 410, San Antonio, TX 78209.

Name of Beneficial Owner
 
Shares
 
Percentage
Beneficially
Beneficially
 Owned
 Owned
         
Thomas Morrison
 
1,265,250.00
 
9.7%
         
Alicia Smith Kriese
 
843,500.00
 
6.5%
         
James Harold Haworth
 
843,500.00
 
6.5%
         
Mathis Family Partners
 
3,821,818.00
(1)
23.3%
         
Benny Doro
 
2,976,732.00
 
22.8%
         
Lazzeri Family Trust
 
1,560,000.00
(2)
10.8%
         
William J Gallagher
 
843,500.00
 
6.5%
         
W H Benjamin Gallagher
 
843,500.00
 
6.5%
         
All officers and directors as a group (3 persons)
 
2,952,250.00
 
22.6%
         
(1)   This amount is comprised of 461,818 shares of common stock and 3,360,000 stock purchase warrants.
(2)   This amount is comprised of 120,000 shares of common stock and 1,440,000 stock purchase warrants.
 
 
 

 
-24-

 

 
SELLING STOCKHOLDERS AND PLAN OF DISTRIBUTION
 
                   We have outstanding 13,053,967 shares of Common Stock.  We are registering by this prospectus an aggregate of 10,325,468 shares of Common Stock and 6,000,168 shares of Common Stock underlying common stock purchase warrants.  The following table sets forth the names of the selling stockholders, the number of shares of our Common Stock and common stock issuable upon exercise of common stock purchase warrants held by each selling stockholder and certain other information. The selling stockholders listed below are offering for sale all shares listed following their names.  None of the selling stockholders is required to sell any of their shares at any time.

The shares may be offered from time to time by the selling stockholders.  Since the selling stockholders may sell all or part of the shares of Common Stock offered in this prospectus, we cannot estimate the number of shares of our Common Stock that will be held by the selling stockholders upon termination of this offering.
 
None of our selling stockholders are officers, directors or 10% or greater stockholders, except Thomas Morrison, Alicia Smith Kriese, James Harold Haworth, Mathis Family Partners, Benny Doro and Lazzeri Family Trust.  None of our selling stockholders are broker-dealers or affiliates of broker-dealers.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-25-


Name of
Shares of Common
Percentage of
Outstanding
Common
Shares of Common
Stock
Shares of Common
Stock Underlying
Common Stock
Purchase Warrants
Percentage
of Common
Stock
Owned
Stockholder
Stock Owned
Stock Owned
Offered for Sale
Offered for Sale
After Sale
Thomas Morrison
                1,265,250
9.7%
                1,265,250
                               -
0.0%
Alicia Smith Kriese
                   843,500
6.5%
                   843,500
                               -
0.0%
James Harold Haworth
                   843,500
6.5%
                   843,500
                               -
0.0%
Mathis Family Partners
                   461,818
3.5%
                   216,000
                3,360,000
0.0%
Benny Doro
                2,976,732
22.8%
                   674,800
                               -
0.0%
Lazzeri Family Trust
                   120,000
 *
                   120,000
                1,440,000
0.0%
William J Gallagher
                   843,500
6.5%
                   843,500
                               -
0.0%
W H Benjamin Gallagher
                   843,500
6.5%
                   843,500
                               -
0.0%
Aaron Lee Brockman
                              3
 *
                              -
                            18
0.0%
Ali Shandanlou
                              8
 *
                              -
                            48
0.0%
Allen Weinstein
                          117
 *
                              -
                          702
0.0%
Anthony Lupinetti
                   100,000
 *
                   100,000
                               -
0.0%
Atasha Ticorra Navy
                   168,700
1.3%
                   168,700
                               -
0.0%
Barry Mark
                            12
 *
                              -
                            72
0.0%
Battersea Capital Inc
                     50,000
 *
                     50,000
                               -
0.0%
Betty J Eunis
                              1
 *
                              -
                              6
0.0%
Bill Castellano
                     84,350
 *
                     84,350
                               -
0.0%
Bill Kemp
                          164
 *
                              -
                          984
0.0%
Bonnie K Jackson
                              3
 *
                              -
                            18
0.0%
Brenda Eddie
                       8,023
 *
                       8,023
                     48,138
0.0%
Brian J Kelley
                     22,628
 *
                              -
                   135,768
0.0%
Brain Kelly
                       8,538
 *
                              -
                     51,228
0.0%
Brook Rosser
                   210,875
1.6%
                   210,875
                               -
0.0%
Bruce E Elliot
                              8
 *
                              -
                            48
0.0%
Buddy Shelton
                          234
 *
                              -
                       1,404
0.0%
C James Inc
                          479
 *
                              -
                       2,874
0.0%
Cap Briant
                   400,663
3.1%
                   400,663
                               -
0.0%
Cede & Co
                     37,105
 *
                              -
                   125,130
0.0%
Ceocast Inc
                   168,700
1.3%
                   168,700
                               -
0.0%
Charles Stevenson
                            23
 *
                              -
                          138
0.0%
Chris Carter
                     25,305
 *
                     25,305
                               -
0.0%
Christee Khan
                     25,305
 *
                     25,305
                               -
0.0%
Christopher Kline
                   100,000
 *
                   100,000
                               -
0.0%
Cindy Cross
                       8,023
 *
                       8,023
                     48,138
0.0%
Corey Ruth
                     10,000
 *
                     10,000
                               -
0.0%
Corey Ruth & Gail Ruth Jtten
                     33,333
 *
                     33,333
                               -
0.0%
Craig D Phypers
                            11
 *
                              -
                            66
0.0%
Craig F Mueller
                              2
 *
                              -
                            12
0.0%
CSM Consulting LLC
                     25,305
 *
                     25,305
                               -
0.0%
Curt Hargis
                   200,000
1.5%
                   200,000
                               -
0.0%
Dan Moody III
                     26,638
 *
                     26,638
                               -
0.0%
Dan Moody Jr
                     26,638
 *
                     26,638
                               -
0.0%
 
 
-26-

David Curry
                          234
 *
                              -
                       1,404
0.0%
Dean Curry
                          234
 *
                              -
                       1,404
0.0%
Derold L Kelley
                     11,459
 *
                     11,459
                     68,754
0.0%
Don Ruth & Elaine Ruth Jtten
                     33,333
 *
                     33,333
                               -
0.0%
Donald Henderson
                            91
 *
                              -
                          546
0.0%
Donald Vaello
                     25,305
 *
                     25,305
                               -
0.0%
Edward Entze
                              7
 *
                              -
                            42
0.0%
Eli Saleeby
                     10,000
 *
                     10,000
                               -
0.0%
Esther B Henningsen
                            12
 *
                              -
                            72
0.0%
Eurostar International Corp
                          973
 *
                              -
                       5,838
0.0%
Executive Management Corporation
                            78
 *
                              -
                          468
0.0%
Executive Registrar & Transfer
                       3,450
 *
                              -
                     20,700
0.0%
Frank Marcucella
                          934
 *
                              -
                       5,604
0.0%
Fred Dulock
                          234
 *
                              -
                       1,404
0.0%
Gail Morrison
                     10,000
 *
                     10,000
                               -
0.0%
Gary Agron
                   125,090
1.0%
                   123,740
                       8,100
0.0%
Gary Leysock
                       8,000
 *
                       8,000
                               -
0.0%
Graeme Pilling
                              8
 *
                              -
                            48
0.0%
Gray Hawn
                     25,305
 *
                     25,305
                               -
0.0%
Graydon Webb
                     42,175
 *
                     42,175
                               -
0.0%
Harriet M Taylor
                              4
 *
                              -
                            24
0.0%
Harvey Synder
                     10,000
 *
                     10,000
                               -
0.0%
Henry Winkler
                          934
 *
                              -
                       5,604
0.0%
Hossein Shadanlou
                              6
 *
                              -
                            36
0.0%
Howard J Williams
                              3
 *
                              -
                            18
0.0%
Hyam Weistein
                          117
 *
                              -
                          702
0.0%
Institutional Analyst Inc.
                     84,350
 *
                     84,350
                               -
0.0%
Internal Revenue Service
                       5,250
 *
                              -
                     31,500
0.0%
Irving R Mollen Ttee
                       1,168
 *
                              -
                       7,008
0.0%
Jack D Kelly
                     49,350
 *
                              -
                   296,100
0.0%
Jack Williamson
                          234
 *
                              -
                       1,404
0.0%
Jacqueline L Looney
                              2
 *
                              -
                            12
0.0%
James R Phillips
                          663
 *
                              -
                       3,978
0.0%
Jeff Morehouse
                   337,400
2.6%
                   337,400
                               -
0.0%
Jeff Morehouse Trustee
                   125,477
1.0%
                   125,477
                               -
0.0%
Jeramy Mcmahon
                     25,305
 *
                     25,305
                               -
0.0%
Jerome K Cabell
                              1
 *
                              -
                              6
0.0%
John Williamson
                          467
 *
                              -
                       2,802
0.0%
Jordan Kelley
                       4,012
 *
                       4,012
                     24,072
0.0%
Joseph D Glass
                          292
 *
                              -
                       1,752
0.0%
Joseph D Miller Jr Cust
                            16
 *
                              -
                            96
0.0%
Julie Mitzelfeld
                          117
 *
                              -
                          702
0.0%
KBK Ventures Inc
                   220,875
1.7%
                   220,875
                               -
0.0%
Kenneth L Clark
                              9
 *
                              -
                            54
0.0%
Kim Sym
                            16
 *
                              -
                            96
0.0%
Kin Pong Lee
                     16,666
 *
                     16,666
                               -
0.0%
 
 
-27-

Kin Tung Lee
                     50,000
 *
                     50,000
                               -
0.0%
Koreen Diatte
                          234
 *
                              -
                       1,404
0.0%
Kwang N Kang
                              7
 *
                              -
                            42
0.0%
Lawerence Dellaquilla
                       8,000
 *
                       8,000
                               -
0.0%
Leon Schrader
                            20
 *
                              -
                          120
0.0%
Lippincott Capital Limited
                     84,350
 *
                     84,350
                               -
0.0%
Lisa Kayanne Campbell
                              1
 *
                              -
                              6
0.0%
Lor Terzian
                     10,000
 *
                     10,000
                               -
0.0%
Louis Wood
                     25,305
 *
                     25,305
                               -
0.0%
Malcolm Watters III
                              7
 *
                              -
                            42
0.0%
Marilyn Schaffer
                            12
 *
                              -
                            72
0.0%
Mark C Johnson
                            39
 *
                              -
                          234
0.0%
Mark Malone
                     42,175
 *
                     42,175
                               -
0.0%
Mark Rush
                          117
 *
                              -
                          702
0.0%
Martin G Summit
                          117
 *
                              -
                          702
0.0%
Marybeth Williamson
                          234
 *
                              -
                       1,404
0.0%
Mee Sook
                              5
 *
                              -
                            30
0.0%
Michael B Hester
                              8
 *
                              -
                            48
0.0%
Michael Notary
                              8
 *
                              -
                            48
0.0%
Michael P Gorton
                          117
 *
                              -
                          702
0.0%
Michael Rush
                          175
 *
                              -
                       1,050
0.0%
Michael Stern
                     42,175
 *
                     42,175
                               -
0.0%
Michael Winkler
                          398
 *
                              -
                       2,388
0.0%
Micheraie Cruz Canales
                     42,175
 *
                     42,175
                               -
0.0%
Moffitt & Company PC
                       3,450
 *
                              -
                     20,700
0.0%
Morgan Kelley
                       4,012
 *
                       4,012
                     24,072
0.0%
Nash S Fancy
                          234
 *
                              -
                       1,404
0.0%
Naubauber & Hunsinger
                       3,300
 *
                              -
                     19,800
0.0%
Organic Alliance Inc.
                               -
 *
                              -
                               -
0.0%
Patricia Reitz
                   200,000
1.5%
                   200,000
                               -
0.0%
Paul D Bowers
                          117
 *
                              -
                          702
0.0%
Paul K Ingerick
                              1
 *
                              -
                              6
0.0%
Peggy Knight
                     25,305
 *
                     25,305
                               -
0.0%
Peter Penariello
                     33,333
 *
                     33,333
                               -
0.0%
Philip M Maier
                            23
 *
                              -
                          138
0.0%
Phillip Posa
                     21,088
 *
                     21,088
                               -
0.0%
R L Schmaus
                            23
 *
                              -
                          138
0.0%
Renee Smanski
                   200,000
1.5%
                   200,000
                               -
0.0%
Richard L Newberg
                          234
 *
                              -
                       1,404
0.0%
Rick Basse
                     30,000
 *
                     30,000
                               -
0.0%
Robert A Hutchinson
                              9
 *
                              -
                            54
0.0%
Robert E Potter
                          234
 *
                              -
                       1,404
0.0%
Robie Russell
                       4,800
 *
                              -
                     28,800
0.0%
Ron Holetzky
                              2
 *
                              -
                            12
0.0%
Ronald D Richmond
                              2
 *
                              -
                            12
0.0%
Ronald M Munyon
                   100,000
 *
                   100,000
                               -
0.0%
Ronald N Solomon
                              7
 *
                              -
                            42
0.0%
Sam Freeman
                   202,440
1.6%
                   202,440
                               -
0.0%
 
 
-28-

Sandra G McCarthy
                            16
 *
                              -
                            96
0.0%
Steven C Phypers
                              6
 *
                              -
                            36
0.0%
Steven H Brandt
                              2
 *
                              -
                            12
0.0%
Steven T Solomon
                              1
 *
                              -
                              6
0.0%
Steves Rosser
                     84,350
 *
                     84,350
                               -
0.0%
Terry Capital Advisor Inc
                          350
 *
                              -
                       2,100
0.0%
Theodore M Heesch
                     84,350
 *
                     84,350
                               -
0.0%
Thomas J Reto
                            55
 *
                              -
                          330
0.0%
Thomas J Sholar
                          350
 *
                              -
                       2,100
0.0%
Thomas Micron
                       9,750
 *
                              -
                     58,500
0.0%
Thomas P Tierney
                              4
 *
                              -
                            24
0.0%
Thomas Puccio
                     84,350
 *
                     84,350
                               -
0.0%
Tom Klein
                     10,000
 *
                     10,000
                               -
0.0%
Triangle International Inc
                            47
 *
                              -
                          282
0.0%
Troy Nowakowski
                     35,000
 *
                     35,000
                               -
0.0%
Underwood Family Partners Ltd
                     50,000
 *
                     50,000
                               -
0.0%
Walter C Copeland Jr
                              5
 *
                              -
                            30
0.0%
Warner Fulbright
                       3,000
 *
                              -
                     18,000
0.0%
Waters
                     17,400
 *
                              -
                   104,400
0.0%
Wayne S Busdiecker
                          117
 *
                              -
                          702
0.0%
William A Lawson
                            16
 *
                              -
                            96
0.0%
William J Harrington
                              4
 *
                              -
                            24
0.0%
Winafred Jenkins
                            31
 *
                              -
                          186
0.0%
Yuvoone L Barker
                            70
 *
                              -
                          420
0.0%
ZZ Bottom Inc
                   421,750
3.2%
                   421,750
                               -
0.0%
           
Total
              13,053,967
100.0%
              10,325,468
                6,000,168
 

* Less than 1%

            In the event that we permit or cause this prospectus to lapse, the selling stockholders may only sell shares of our Common Stock pursuant to Rule 144 under the Securities Act of 1933.  The selling stockholders will have the sole and absolute discretion not to accept any purchase offer or make any sale of these shares of our Common Stock if they deem the purchase price to be unsatisfactory at any particular time.
 
The selling stockholders may also sell these shares of our Common Stock directly to market makers and/or broker-dealers acting as agents for their customers.  These broker-dealers may receive compensation in the form of discounts, concessions or commissions from the selling stockholders and/or the purchasers of these shares of our Common Stock for whom such broker-dealers may act as agents.  As to a particular broker-dealer, this compensation might be in excess of customary commissions.  Market makers and block purchasers purchasing these shares of our Common Stock may do so for their own account and at their own risk.  It is possible that a selling stockholder will attempt to sell shares of our Common Stock in block transactions to market makers or other purchasers at a price per share which may be below the prevailing market price of our Common Stock.  There can be no assurance that all or any of these shares of our Common Stock offered hereby will be issued to, or sold by, the selling stockholders.  Upon effecting the sale of any of these shares of our Common Stock offered under this prospectus, the selling stockholders and any brokers, dealers or agents, hereby, may be deemed “underwriters” as that term is defined under the Securities Act of 1933 or the Securities Exchange Act of 1934, or the rules and regulations thereunder.

-29-


Alternatively, the selling stockholders may sell all or any part of the shares of our Common Stock offered hereby through an underwriter.  No selling stockholder has entered into any agreement with a prospective underwriter, and there is no assurance that any such agreement will be entered into.  If a selling stockholder enters into an agreement or agreements with an underwriter, then the relevant details will be set forth in a supplement or revision to this prospectus.
 
The selling stockholders and any other persons participating in the sale or distribution of these shares of our Common Stock will be subject to applicable provisions of the Securities Exchange Act of 1934 and the rules and regulations thereunder including, without limitation, Regulation M.  These provisions may restrict activities of, and limit the timing of purchases and sales of any of these shares of our Common Stock by, the selling stockholders.  Furthermore, pursuant to Regulation M, a person engaged in a distribution of securities is prohibited from bidding for, purchasing or attempting to induce any person to bid for or purchase our securities for a period beginning five business days prior to the date of this prospectus until such person is no longer a selling stockholder.  These regulations may affect the marketability of these shares of our Common Stock.
 
We will pay substantially all of the expenses incident to the registration and offering of our Common Stock, other than commissions or discounts of underwriters, broker-dealers or agents.
 
RELATED PARTY AND OTHER MATERIAL TRANSACTIONS
 

 
In March 2008, William Gallagher, then an officer of Organic Texas, advanced it $15,000. The advance is evidenced by a time note bearing interest at 8% per annum on any unpaid balance.  The unpaid balance including interest was $8,469 at March 31, 2008.
 
We have not adopted formal policies and procedures for the review, approval or ratification of related party transactions with our executive officers, directors or significant stockholders. However, we intend that such transactions will, on a going-forward basis, be subject to the review, approval or ratification of our Board of Directors.
 
 
 
 
 
 
-30-


DESCRIPTION OF CAPITAL STOCK
 
General
 
We are authorized to issue 60,000,000 shares of Common Stock, $.0001 par value per share, and 10,000,000 shares of preferred stock, $.0001 par value per share.

Common Stock

            Currently, there are 13,053,967 shares of Common Stock outstanding.  The holders of Common Stock are entitled to one vote per share on all matters submitted to a vote of stockholders, including the election of directors.  There is no right to cumulate votes in the election of directors.  The holders of Common Stock are entitled to any dividends that may be declared by the Board of Directors out of funds legally available therefore subject to the prior rights of holders of preferred stock and any contractual restrictions we have against the payment of dividends on Common Stock.  In the event of our liquidation or dissolution, holders of Common Stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any outstanding shares of preferred stock.  Holders of Common Stock have no preemptive rights and have no right to convert their Common Stock into any other securities.
 
Preferred Stock
 
We are authorized to issue 10,000,000 shares of preferred stock in one or more series with such designations, voting powers, if any, preferences and relative, participating, optional or other special rights, and such qualifications, limitations and restrictions, as are determined by resolution of our Board of Directors.  The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of our company without further action by stockholders and could adversely affect the rights and powers, including voting rights, of the holders of Common Stock.  In certain circumstances, the issuance of preferred stock could depress the market price of the Common Stock. No shares of preferred stock have been issued.

Common Stock Purchase Warrants

Our Class A, Class B, Class C, Class D, Class E and Class F warrants are all exerciseable at $1.00 per share, at any time until December 31, 2011.  Approximately 80% of the Warrants are subject to a call provision on 10 days notice to the holders if (i) the bid price of the common stock is quoted is quoted at $1.25 per share or higher and the average share volume exceeds 300,000 shares for at least one day, and (ii) the shares underlying the Warrants are subject to a current registration statement on file with the Securities and Exchange Commission.  Both the share price and volume must be met on the same day for the call provision to be effective.

Dividends
 
                   We do not intend to pay dividends on our capital stock in the foreseeable future.

Transfer Agent
 
                   Corporate Stock Transfer, Inc., Denver, Colorado, is our transfer agent and warrant agent.

-31-

SHARES ELIGIBLE FOR FUTURE SALE
 
                   We have 13,053,967 shares of Common Stock outstanding, of which 2,728,499 shares of Common Stock are free trading and 10,325,468 shares are being registered hereby. We are also registering an aggregate of 6,000,168 shares issuable upon exercise of common stock purchase warrants.

                   In general, under Rule 144 as modified on February 15, 2008, a person who owns shares that were purchased from us, or any affiliate, at least six months previously and who is not an officer, director or 10% or greater stockholder of our company (a “non-affiliate”), is entitled to sell all or any portion of such shares under Rule 144 so long as we have filed all required SEC reports and continue to do so while the shares are offered for sale.  After one year from purchase, the shares may be sold by a non-affiliate regardless of whether we have filed all required SEC reports.  Our affiliates may also sell their shares under Rule 144 after they have been held for six months or more in an amount not to exceed:
 
·
1% of the then outstanding shares of our Common Stock; or
·
The average weekly trading volume of our Common Stock during the four calendar weeks preceding the date on which notice of the sale is filed with the SEC.

Future sales of restricted Common Stock under Rule 144 or otherwise or of the shares which we are registering under this prospectus could negatively impact the market price of our Common Stock.  We are unable to estimate the number of shares that may be sold in the future by our existing stockholders or the effect, if any, that sales of shares by such stockholders will have on the market price of our Common Stock prevailing from time to time.  Sales of substantial amounts of our Common Stock by existing stockholders could adversely affect prevailing market prices.

EXPERTS
   
                   Our audited financial statements included in this prospectus for the years ended December 31, 2007 and 2006, have been included in reliance on the report of Martin & Weaver, LLC, an independent registered public accounting firm, given on the authority of this firm as experts in accounting and auditing.
   
 
 
 
 
 
 
 
 
 
 
 

 
-32-

LEGAL MATTERS
 
                   The validity of the Common Stock offered hereby will be passed upon for us by the Law Office of Gary A. Agron, Greenwood Village, Colorado.  Mr. Agron owns 125,090 shares of our common stock and 1,350 each of the Class A, Class B, Class C, Class D, Class E and Class F warrants.
 
WHERE YOU CAN FIND MORE INFORMATION
 
                   We have filed with the Securities and Exchange Commission a registration statement on Form S-1 under the Securities Act of 1933 with respect to the Common Stock offered by this prospectus.  This prospectus does not contain all of the information set forth in the registration statement and the exhibits to the registration statement.  For further information with respect to our company and our Common Stock offered hereby, reference is made to the registration statement and the exhibits filed as part of the registration statement.  We are also required to file periodic reports with the Securities and Exchange Commission, including quarterly reports, annual reports which include our audited financial statements and proxy statements, and we provide our annual reports, including audited financial statements and proxy statements, to our stockholders.  The registration statement, including exhibits thereto, and all of our periodic reports may be inspected without charge at the Securities and Exchange Commission’s principal office in Washington, DC, and copies of all or any part thereof may be obtained from the Public Reference Section of the Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549.  You may obtain additional information regarding the operation of the Public Reference Section by calling the Securities and Exchange Commission at 1-800-SEC-0330.  The Securities and Exchange Commission also maintains a website which provides online access to reports, proxy and information statements and other information regarding registrants that file electronically with the Securities and Exchange Commission at the address: http://www.sec.gov.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-33-

ORGANIC ALLIANCE, INC.
 
16,325,636 SHARES OF COMMON STOCK
 
         Until ______________, 2008, all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus.  This is in addition to the dealers’ obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
-34-

To the Board of Directors and Stockholders
NB Design & Licensing, Inc.
Littleton, Colorado


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have audited the balance sheets of NB Design & Licensing, Inc (a development stage company) as of December 31, 2007 and 2006 and the related statements of operations, stockholders’ equity, and cash flows for the years then ended and the period of September 19, 2001 (inception) to December 31, 2007.  NB Design & Licensing, Inc.’s management is responsible for these financial statements.  Our responsibility is to express an opinion on these financial statements based on our audit.

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 audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.  Accordingly, we express no such opinion.  Our audits of the financial statements include examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and 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 NB Design & Licensing, Inc. as of December 31, 2007 and 2006 and the results of its operations, stockholders’ equity, and cash flows for the years then ended and the period of September 19, 2001 (inception) to December 31, 2007 in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has suffered recurring losses from operations and is dependent upon the continued sale of its securities or obtaining debt financing for funds to meet its cash requirements. These factors raise substantial doubt about the Company’s ability to continue as a going concern.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.


/s/ Weaver & Martin, LLC
Weaver & Martin, LLC
Kansas City, Missouri
March 3, 2008
 
 
 
 
 
 
F-1

NB Design & Licensing, Inc.
         
(a Development Stage Company)
         
Balance Sheets
         
 
                   
                   
   
3/31/2008
   
12/31/2007
   
12/31/2006
 
   
unaudited
   
audited
   
audited
 
Assets
                 
Current assets:
                 
Cash
  $ 49,409       227       -  
Total current assets
    49,409       227       -  
                         
Total Assets
  $ 49,409       227       -  
                         
Liabilities and Stockholders' Equity (Deficit)
                       
                         
Current liabilities:
                       
Accounts Payable
  $ 5,321       9,425       -  
Due to Organic Alliance Inc.
    15,000       -       -  
Total current liabilities
    20,321       9,425       -  
                         
Stockholders' equity (deficit):
                       
Preferred stock, no stated value authorized;
                       
10,000,000 shares; -0- shares issued
                       
and outstanding as of March 31, 2008
    -       -       -  
Common stock, $.0001 par value, 60,000,000 shares
                       
authorized, 1,200,028 and 1,000,028 shares issued
                       
and outstanding as of March 31, 2008 and
                       
December 31, 2007 and 2006, respectively
    120       100       100  
Additional paid-in capital
    71,021       21,041       20,966  
(Deficit) accumulated during development stage
    (42,053 )     (30,339 )     (21,066 )
      29,088       (9,198 )     -  
                         
Total Liabilities and Stockholders' Equity (Deficit)
  $ 49,409       227       -  
                         
                         
                         
 
                         
                         
                         
                         
                         
                         
                         
The accompanying notes are an integral part of these financial statements
         
 
 
 
F-2

NB Design & Licensing, Inc.
         
(a Development Stage Company)
         
Statement of Operations
         
 
                         
   
For the
   
For the
   
For the
   
For the Period
 
   
Quarter
   
Year
   
Year
   
September 19, 2001
 
   
Ended
   
Ended
   
Ended
   
(Date of Inception)
 
   
3/31/2008
   
12/31/2007
   
12/31/2006
   
to March 31, 2008
 
   
unaudited
   
audited
   
audited
       
                         
Revenue
  $ -       -       -       -  
                                 
Expenses:
                               
Accounting
    4,200       -       167       12,250  
Legal
    2,963       1,500       1,108       5,668  
Sharholder Services
    334       1,408       1,600       6,241  
Other general and administrative expenses
    4,217       6,365       1,125       12,974  
Total expenses
    11,714       9,273       4,000       37,133  
                                 
Other expenses:
                               
Interest expense
    -       -       -       -  
Total other expenses
    -       -       -       -  
                                 
(Loss) before provision for taxes
    (11,714 )     (9,273 )     (4,000 )     (37,133 )
                                 
Provision for income taxes
    -       -       -       -  
                                 
Net (loss)
  $ (11,714 )     (9,273 )     (4,000 )     (37,133 )
                                 
Net (loss) per share - basic and fully diluted
  $ (0.01 )     (0.01 )     (0.00 )        
                                 
Weighted average number of
                               
common shares outstanding - basic and fully diluted
    1,114,314       1,000,028       1,000,028          
 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
The accompanying notes are an integral part of these financial statements
                 
 
 
F-3

NB Design & Licensing, Inc.
                             
(a Development Stage Company)
                         
Statement of Stockholder's Equity
                         
 
                               
                               
                               
                     
(Deficit)
       
                     
Accumulated
       
   
Common Stock, Par $0.0001
   
Additional
   
During
   
Total
 
               
Paid-In
   
Development
   
Stockholder's
 
   
Shares
   
Amount
   
Capital
   
Stage
   
Equity
 
                               
Beginning Balances, January 1, 2006
    1,000,028     $ 100     $ 14,466     $ (17,066 )   $ (2,500 )
                                         
Expenses paid by stockholder and
    -       -       6,500       -       6,500  
donated to the company
                                       
                                         
Net Loss
    -       -       -       (4,000 )     (4,000 )
                                         
Balance at December 31, 2006
    1,000,028     $ 100     $ 20,966     $ (21,066 )   $ -  
                                         
Expenses paid by stockholder and
    -       -       75       -       75  
donated to the company
                                       
                                         
Net Loss
    -       -       -       (9,273 )     (9,273 )
                                         
Balance at December 31, 2007
    1,000,028     $ 100     $ 21,041     $ (30,339 )   $ (9,198 )
                                         
Shares sold
    200,000       20       49,980       -       50,000  
                                         
Net loss for the quarter ended
                                       
March 31, 2008
    -       -       -       (11,714 )     (11,714 )
                                         
Balance, March 31, 2008 (unaudited)
    1,200,028     $ 120     $ 71,021     $ (42,053 )   $ 29,088  
 
                                         
                                         
                                         
                                         
                                         
                                         
The accompanying notes are an integral part of these financial statements
                 
 
 
 
 
F-4

NB Design & Licensing, Inc.
         
(a Development Stage Company)
         
Statement of Cash Flows
         
 
                         
   
For the
   
For the
   
For the
   
For the Period
 
   
Quarter
   
Year
   
Year
   
September 19, 2001
 
   
Ended
   
Ended
   
Ended
   
(Date of Inception)
 
   
3/31/2008
   
12/31/2007
   
12/31/2006
   
to March 31, 2008
 
   
unaudited
   
audited
   
audited
       
                         
Cash flows from operating activities:
                       
Net (loss)
  $ (11,714 )     (9,273 )     (4,000 )     (42,053 )
Adjustments to reconcile net loss to net cash used in operating activities:
                 
Expenses paid by stockholder and donated to the company
    -       75       6,500       21,141  
 Changes in operating assets and liabilities:
                               
Accounts Payable
    (4,104 )     9,425       (2,500 )     5,321  
Due to Organic Alliance Inc.
    15,000       -       -       15,000  
Net cash provided (used) by operating activities
    (818 )     227       -       (591 )
                                 
Cash flows from financing activities
                               
Proceeds from issuance of common stock
    50,000       -       -       50,000  
Net cash provided by financing activities
    50,000       -       -       50,000  
                                 
Net increase in cash
    49,182       227       -       49,409  
Cash - beginning
    227       -       -       -  
Cash - ending
  $ 49,409       227       -       49,409  
                                 
Supplemental disclosures of noncash items:
                               
Stock-based compensation
  $ -       -       -       -  
Expenses paid by stockholder and donated to the company
    -       75       6,500       21,141  
Total supplemental disclosures of noncash items:
  $ -       75       6,500       21,141  
                                 
Supplemental disclosures:
                               
Interest paid
  $ -       -       -       -  
Income taxes paid
  $ -       -       -       -  
 
                                 
                                 
                                 
                                 
                                 
The accompanying notes are an integral part of these financial statements
                 
 
 
F-5

NB Design & Licensing, Inc.
(A Development Stage Company)
Notes to Financial Statements

1.
NATURE OF BUSINESS AND HISTORY OF COMPANY

NB Design & Licensing, Inc. (the "Company") was incorporated on September 19, 2001 in the state of Nevada as a stipulation in the Final Decree in Bankruptcy of New Bridge Products, Inc. The creditors of New Bridge Products, Inc. received 1,000,028 shares of NB Design & Licensing, Inc. and warrants to purchase an additional 6,000,168 shares on September 26, 2002 in final payment of the funds they were owed from New Bridge Products, Inc.

The original purpose of the purpose of the Company was to provide design and licensing services related to the business of New Bridge Products, Inc.  The Company's current operations consist of primarily professional fees to maintain the corporate shell.

Basis of Presentation - The Company's financial statements have been prepared on an accrual basis of accounting, in conformity with accounting principles generally accepted in the United States of America. These principles contemplate the realization of assets and liquidation of liabilities in the normal course of business.

Net(Loss)Per Share - The Company adopted Statement of Financial Accounting Standards No. 128 that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.  In accordance with FASB I28, any anti-dilutive effects on net income (loss) per share are excluded.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recently Issued Accounting Standards Not Yet Adopted - There currently are no recently issued accounting standards with pending adoptions that have any applicability to the Company.

2.
GOING CONCERN

The accompanying financial-statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business.

The Company's development activities since inception have been financially sustained through stockholder donations to the Company.

The ability of the Company to continue as a going concern is dependent upon its ability to find a suitable acquisition/merger candidate, raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to recover the value of its assets or satisfy its liabilities.
 
F-6


 
3.
INCOME TAXES

At March 31, 2008 we had net operating loss carry forwards for federal income tax purposes of approximately $42,000, which are available to offset future federal taxable income, if any. Utilization of the net operating loss, which expires at various times starting in 2024, may be subject to certain limitations under section 382 of the Internal Revenue Code of 1986, as amended, and other limitations under-state tax laws. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. As of March 31, 2008 we do not believe we meet the criteria to recognize the deferred tax asset, and we have accordingly provided a full valuation allowance.

Deferred Taxes

The components of deferred tax assets are as follows:

Net operating loss carryforwards
  $ 8,400  
Less: Valuation allowance
    ( 8,400 )
Net deferred tax asset
    -  

A reconciliation of the valuation allowance is as follows:

Balance at January 1, 2006
  $ 3,400  
Addition for the year 2006
    800  
Addition for the year 2007
    1,850  
Addition for the quarter ended 3/31/08
    2,350  
Balance at March 31, 2008
  $ 8,400  

Tax Carryforwards

The Company has the following tax carryforwards at March 31, 2008:

Year
 
Amount
 
Expiration Date
         
   Net operating loss
       
December 31, 2004
  $ 4,920  
December 31, 2024
December 31, 2005
    12,146  
December 31, 2025
December 31, 2006
    4,000  
December 31, 2026
December 31, 2007
    9,273  
December 31, 2027
March 31, 2008
    11,714  
December 31, 2028
           
             Total
  $ 42,053    
 
 
F-7

Future changes in ownership may limit the ability of the Company utilize these net operating loss carryforwards prior to their expiration.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible.

4.
PREFERRED STOCK

The Company has not assigned any preference rights to the preferred stock.

5.
EXPENSES PAID BY STOCKHOLDER AND DONATED TO THE COMPANY

Two stockholders of the Company paid expenses totaling $75, and $6,500 in 2007 and 2006 respectively. Both have agreed not to be reimbursed for the payments and to consider the payments as capital donated to the Company.

A stockholder also provided office overhead expenses to the Company in 2007 and 2006. The Company estimated the fair value of the services was $ 1,000. The stockholder also agreed not to be reimbursed for these costs and to consider the costs as capital donated to the Company.

There were no such transactions for the quarter ended March 31, 2008.

6.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In February 2008, the Company sold 200,000 restricted shares of common stock for $50,000 to help fund the Company.

7.
COMMON STOCK WARRANTS

On September 26, 2002 the Company issued the following common stock warrants:

Number
       
of Shares
 
Exercise Price
 
Expiration Date*
1,000,028
 
$ 2.00
 
December 31,2008
1,000,028
 
$ 2.00
 
December 31,2008
1,000,028
 
$ 4.00
 
December 31,2008
1,000,028
 
$ 4.00
 
December 31,2008
1,000,028
 
$ 6.00
 
December 31,2008
1,000,028
 
$ 6.00
 
December 31,2008

* Extended from original expiration date.

As Part of the April 29, 2008 merger agreement (See Note 8), the common stock warrants were extended to December 31, 2011 and the exercise price was changed to $1.00.

8.
SUBSEQUENT EVENTS

On April 29, 2008, the Company acquired all 10,916,917 issued and outstanding shares of common stock of Organic Alliance, Inc. (OAI) for 9,299,972 shares of the Company’s common stock.  The current officers and directors of OAI assumed control of the Company from Robert Lazzeri, CEO and Director. Mr. Lazzeri and other Company officers and directors resigned from the Company. As part of the transaction $200,000 was paid to certain shareholders of Company for 500,000 shares of Company’s common stock.  These shares were subsequently retired by the new management team.

F-8

OAI remains a subsidiary of the Company but has ceased all business activity.

As Part of the April 29, 2008 merger agreement, the common stock warrants (See Note 7) were extended to December 31, 2011 and the exercise price was changed to $1.00.

After the merger was completed on April 29, 2008, the Company sold 2,516,666 shares of common stock for $1,005,000.

In May through August 2008, the Company issued 537,300 shares of common stock to consultants.

In June 2008, the Company changed its name to Organic Alliance, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
F-9

Organic Alliance, Inc.
     
(a Development Stage Company)
     
Balance Sheet
     
Unaudited
     
 
       
   
3/31/2008
 
       
Assets
     
Current assets:
     
Cash
  $ 93,550  
Prepaid expenses
    239,301  
Due From NB Design
    15,000  
Total current assets
    347,851  
         
Total Assets
  $ 347,851  
         
Liabilities and Stockholders' Equity
       
         
Current liabilities:
       
Accounts Payable
  $ 991  
Notes Payable to Related Party
    8,469  
Total current liabilities
    9,460  
         
Stockholders' equity
       
Common stock, no par value, 60,000,000 shares
       
authorized, 10,028,160 shares issued
       
and outstanding as of March 31, 2008
    3,008,448  
(Deficit) accumulated during development stage
    (2,670,057 )
      338,391  
         
Total Liabilities and Stockholders' Equity
  $ 347,851  
 
         
         
         
         
         
         
         
         
         
         
         
         
         
         
The accompanying notes are an integral part of these financial statements
 

F-10

Organic Alliance, Inc.
   
(a Development Stage Company)
   
Statement of Operations
   
For the period February 14, 2008 (inception) to March 31, 2008
Unaudited
   
 
       
       
Revenue
  $ -  
         
Expenses:
       
Accounting
    375  
Legal
    132,000  
Investor relations
    507,188  
Stock based compensation
    1,282,274  
Other general and administrative expenses
    748,176  
Total expenses
    2,670,013  
         
Other expenses:
       
Interest expense
    44  
Total other expenses
    44  
         
(Loss) before provision for taxes
    (2,670,057 )
         
Provision for income taxes
    -  
         
Net (loss)
  $ (2,670,057 )
         
Net (loss) per share - basic and fully diluted
  $ (0.28 )
         
Weighted average number of
       
common shares outstanding - basic and fully diluted
    9,394,122  
 
 
 
 
 
The accompanying notes are an integral part of these financial statements
 
 
 
 
F-11

Organic Alliance, Inc.
                       
(a Development Stage Company)
                     
Statement of Stockholder's Equity
                   
For the period February 14, 2008 (inception) to March 31, 2008
       
Unaudited
                       
 
                         
               
(Deficit)
       
               
Accumulated
       
   
No Par Common Stock
   
During
   
Total
 
               
Development
   
Stockholder's
 
   
Shares
   
Amount
   
Stage
   
Equity
 
                         
Beginning Balances, February 14, 2008
    -     $ -     $ -     $ -  
                                 
Shares sold
    335,000       100,500       -       100,500  
Issuance of common stock for services
    9,693,160       2,907,948       -       2,907,948  
                                 
Net loss for the period from February 14, 2008
                         
     (inception) to March 31, 2008
    -       -       (2,670,057 )     (2,670,057 )
                                 
Balance, March 31, 2008 (unaudited)
    10,028,160     $ 3,008,448     $ (2,670,057 )   $ 338,391  
 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
The accompanying notes are an integral part of these financial statements
         
 
 
 
F-12

Organic Alliance, Inc.
   
(a Development Stage Company)
   
Statement of Cash Flows
   
For the period February 14, 2008 (inception) to March 31, 2008
 
Unaudited
   
 
       
Cash flows from operating activities:
     
Net (loss)
  $ (2,670,057 )
Adjustments to reconcile net loss to net cash used in operating activities:
 
Stock issued for services
    2,907,948  
Changes in operating assets and liabilities:
       
Prepaid expenses
    (239,301 )
Due From NB Design
    (15,000 )
Accounts Payable
    991  
Net cash used by operating activities
    (15,419 )
         
Cash flows from financing activities
       
Net proceeds (repayments) on note payable to/from related party
    8,469  
Proceeds from issuance of common stock
    100,500  
Net cash provided by financing activities
    108,969  
         
Net increase in cash
    93,550  
Cash - beginning
    -  
Cash - ending
  $ 93,550  
         
Supplemental disclosures of noncash items:
       
Stock issued for services
  $ 2,907,948  
         
Supplemental disclosures:
       
Interest paid
  $ -  
Income taxes paid
  $ -  
 
         
         
         
         
         
The accompanying notes are an integral part of these financial statements
 
 
 
 
 
F-13

Organic Alliance, Inc. (Texas)
(a Development Stage Company)
Notes to Financial Statements

1.
NATURE OF BUSINESS AND HISTORY OF COMPANY

Organic Alliance, Inc. (the "Company") a Texas Corporation, was formed in February of 2008, for the purpose of acquiring all assets of the Organic Trading Partners, a business organized to source and trade organic food products internationally.

Basis of Presentation - The Company's financial statements have been prepared on an accrual basis of accounting, in conformity with accounting principles generally accepted in the United States of America. These principles contemplate the realization of assets and liquidation of liabilities in the normal course of business.

Net(Loss)Per Share - The Company adopted Statement of Financial Accounting Standards No. 128 that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.  In accordance with FASB I28, any anti-dilutive effects on net income (loss) per share are excluded.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recently Issued Accounting Standards Not Yet Adopted - There currently are no recently issued accounting standards with pending adoptions that have any applicability to the Company.

2.
GOING CONCERN

The accompanying financial-statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business.

The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to recover the value of its assets or satisfy its liabilities.

3.
INCOME TAXES

At March 31, 2008 we had net operating loss for federal income tax purposes of approximately $2,607,000, which are available to offset future federal taxable income, if any. Utilization of the net operating loss, which expires at starting in 2028, may be subject to certain limitations under section 382 of the Internal Revenue Code of 1986, as amended and other limitations under-state tax laws. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, possible restrictions due to ownership changes, projected future taxable income, and tax planning strategies in making this assessment. As of March 31, 2008 we do not believe we meet the criteria to recognize the deferred tax asset, and we have accordingly provided a full valuation allowance.

F-14

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible.

4.      EQUITY TRANSACTIONS

In March 2008, the Company sold 335,000 restricted shares of common stock for $100,500 to help fund the Company.

In March 2008, the Company issued 9,693,160 shares of common stock in relation to consulting agreements (See Note 5).

As of March 31, 2008 there are no outstanding options or warrants.

5.      CONSULTING AGREEMENTS

In March 2008, the Company issued 6,193,160 shares of common stock to consultants to perform services for the company including legal, public relations, investor relations, and other.  These shares were valued at $1,857,948 or $0.30 per share based on the sales price of shares to non-related third parties during March 2008.  Of the total amount $1,618,647 was expensed in the period ended March 31, 2008 and $239,301 has been recorded as a prepaid asset as of March 31, 2008.  The prepaid asset will be amortized over the remaining lives of the agreements to which it pertains.  The prepaid asset will be fully amortized during the remainder of 2008 and during the first quarter of 2009.

In March 2008, the Company issued 3,500,000 shares of common stock to Officers and Directors of the Company.  These shares were valued at $1,050,000 or $0.30 per share based on the sales price of shares to non-related third parties during March 2008.  $1,050,000 has been expensed in the period ended March 31, 2008.

6.      RELATED PARTY TRANSACTION

The Company has received a $15,000 loan from a consultant on March 15, 2008 that bore interest at 8% per annum. The loan balance was $8,469 at March 31, 2008.  Interest expensed related to the loan was $44 for the period ended March 31, 2008.

7.
SUBSEQUENT EVENTS

In April 2008, the Company sold 250,000 restricted shares of common stock for $75,000 to help fund the Company.

F-15

In April 2008, the Company issued 638,757 shares of common stock to consultants to perform various services for the company.

On April 29, 2008, the Company was acquired when all 10,916,917 issued and outstanding shares of common stock were sold for 9,299,972 shares of NB Design & Licensing, Inc. common stock.  The Company assumed control of NB Design and the officers NB Design resigned from the Company. As part of the transaction $200,000 was paid to certain shareholders of NB Design for 500,000 shares of NB Design common stock.  These shares were subsequently retired.

In June 2008, NB Design changed its name to Organic Alliance, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
F-16

UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2008

The following unaudited pro forma consolidated financial statements and related notes are presented to show the pro forma effects of the Company’s April 29, 2008 acquisition of Organic Texas for the quarter ended March 31, 2008. The unaudited pro forma consolidated financial statements are presented to show the Company’s financial position and results of operations as if the Organic Texas transaction occurred as of January 1, 2008.

Pro forma data are based on assumptions and include adjustments as explained in the notes to the unaudited pro forma consolidated financial statements.  The pro forma data are not necessarily indicative of the financial results that would have been attained had the Organic Texas transaction occurred January 1, 2008 and should not be viewed as indicative of operations in future periods. The unaudited pro forma consolidated financial statements should be read in conjunction with notes thereto.
 
 
 
Organic Alliance, Inc. (formerly known as NB Design & Licensing, Inc.)
   
(a Development Stage Company)
           
Proforma Balance Sheet at March 31, 2008
           
Unaudited
           
 
                         
   
NB Design
   
OAI
   
Eliminations
   
Total
 
                         
Assets
                       
Current assets:
                       
Cash
  $ 49,409       93,550       -       142,959  
Prepaid expenses
    -       239,301       -       239,301  
Intercompany receivable/payable
    (15,000 )     15,000       -       -  
Total current assets
    34,409       347,851       -       382,260  
                                 
Total Assets
  $ 34,409       347,851       -       382,260  
                                 
Liabilities and Stockholders' Equity
                               
                                 
Current liabilities:
                               
Accounts Payable
  $ 5,321       991       -       6,312  
Notes Payable to Related Party
    -       8,469       -       8,469  
Total current liabilities
    5,321       9,460       -       14,781  
                                 
Stockholders' equity
                               
Preferred stock, no stated value authorized;
                               
10,000,000 shares; -0- shares issued
                               
and outstanding as of March 31, 2008
    -       -       -       -  
Common stock, $.0001 par value, 60,000,000
                               
shares authorized
    120       3,008,448       (3,007,568 )     1,000  
Additional paid-in capital
    71,021       -       3,007,568       3,078,589  
(Deficit) accumulated during development stage
    (42,053 )     (2,670,057 )     -       (2,712,110 )
      29,088       338,391       -       367,479  
                                 
Total Liabilities and Stockholders' (Deficit)
  $ 34,409       347,851       -       382,260  
 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
The accompanying notes are an integral part of these financial statements
                 
 
 
F-17

Organic Alliance, Inc. (formerly known as NB Design & Licensing, Inc.)
   
(a Development Stage Company)
         
Proforma Statement of Operations for the quarter ended March 31, 2008
 
Unaudited
         
 
                         
   
NB Design
   
OAI
   
Eliminations
   
Total
 
                         
Revenue
  $ -       -       -       -  
                                 
Expenses:
                               
Accounting
    4,200       375       -       4,575  
Legal
    2,963       132,000       -       134,963  
Investor relations
    334       507,188       -       507,522  
Stock based compensation
    -       1,282,274       -       1,282,274  
Other general and administrative expenses
    4,217       748,176       -       752,393  
Total expenses
    11,714       2,670,013       -       2,681,727  
                                 
Other expenses:
                               
Interest expense
    -       44       -       44  
Total other expenses
    -       44       -       44  
                                 
(Loss) before provision for taxes
    (11,714 )     (2,670,057 )     -       (2,681,771 )
                                 
Provision for income taxes
    -       -       -       -  
                                 
Net (loss)
  $ (11,714 )     (2,670,057 )     -       (2,681,771 )
                                 
Net (loss) per share - basic and fully diluted
  $ (0.01 )     (0.28 )             (0.27 )
                                 
Weighted average number of
                               
common shares outstanding - basic and fully diluted
    1,114,314       9,394,122               9,914,286  
 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
The accompanying notes are an integral part of these financial statements
                 
 
 
 
F-18

Organic Alliance, Inc. (formerly known as NB Design & Licensing, Inc.)
     
(a Development Stage Company)
         
Proforma Statement of Cash Flows for the Quarter ended March 31, 2008
   
Unaudited
         
 
                         
   
NB Design
   
OAI
   
Eliminations
   
Total
 
Cash flows from operating activities:
                       
Net (loss)
  $ (11,714 )     (2,670,057 )     -       (2,681,771 )
Adjustments to reconcile net loss to net cash used in operating activities:
                 
Stock issued for services
    -       2,907,948       -       2,907,948  
Changes in operating assets and liabilities:
                               
Prepaid expenses
    -       (239,301 )     -       (239,301 )
Intercompany receivable/payable
    15,000       (15,000 )     -       -  
Accounts Payable
    (4,104 )     991       -       (3,113 )
Net cash used by operating activities
    (818 )     (15,419 )     -       (16,237 )
                                 
Cash flows from financing activities
                               
Net proceeds (repayments) on note payable to/from related party
    -       8,469       -       8,469  
Proceeds from issuance of common stock
    50,000       100,500       -       150,500  
Net cash provided by financing activities
    50,000       108,969       -       158,969  
                                 
Net increase in cash
    49,182       93,550       -       142,732  
Cash - beginning
    227       -       -       227  
Cash - ending
  $ 49,409       93,550       -       142,959  
                                 
Supplemental disclosures of noncash items:
                               
Stock issued for services
  $ -       2,907,948       -       2,907,948  
                                 
Supplemental disclosures:
                               
Interest paid
  $ -       -       -       -  
Income taxes paid
  $ -       -       -       -  
 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
The accompanying notes are an integral part of these financial statements
                 
 
 
 
F-19

Organic Alliance, Inc. (formerly NB Design & Licensing, Inc.)
Notes to Unaudited Pro Forma Financial Statements
 

 
Basis of Presentation
 
 
The unaudited pro forma balance sheet as of March 31, 2008, the unaudited pro forma statements of operations for the three months ended March 31, 2008, and the unaudited pro forma statement of cash flows for the three months ended March 31, 2008, are based on the financial statements of NB Design & Licensing, Inc. as of and for the three months ended March 31, 2008 and the unaudited financial statements of Organic Alliance, Inc. as of March 31, 2008 and for the period  from February 14, 2008 (inception) to March 31, 2008, and the adjustments and assumptions described below.  All share amounts reflect the shares issued and retired in the April 29, 2008 agreement consolidating the two companies.
 
 
Pro forma adjustments:
 
 
All the unaudited pro forma financial statements reflect the June 2008 name change of NB Design & Licensing, Inc. to Organic Alliance, Inc.
 
 
The unaudited pro forma balance sheets reflect the following adjustments:
 

·
Record the issuance of 9,299,972 shares of common stock of NB Design & Licensing, Inc. for a 100% equity interest of Organic Alliance, Inc., effective April 29, 2008.
 
 
·
Record the retirement of 500,000 share of common stock of NB Design & Licensing, Inc.

The unaudited pro forma statements of operations reflect the following adjustments associated with the transaction for the three months ended March 31, 2008, as if the transactions had taken place on January 1, 2008:

·
Include the issuance of 9,299,972 shares and the retirement of 500,000 shares of NB Design & Licensing, Inc. common stock in the weighted average common shares outstanding for the three months ended March 31, 2008.

The unaudited pro forma statements of cash flows reflect no adjustments for the three months ended March 31, 2008.

 
 

 
F-20

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS
 
ITEM 13.  OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION (1)

SEC Registration Fees
 
$
1,846
 
Blue Sky Filing Fees
 
$
2,000
 
Blue Sky Legal Fees
 
$
2,000
 
Printing Expenses
 
$
5,000
 
Legal Fees
 
$
50,000
 
Accounting Fees
 
$
10,000
 
Transfer Agent Fees
 
$
2,000
 
Miscellaneous Expenses
 
$
 7,154
 
Total
 
$
80,000
 
 (2)

(1)  All expenses, except the SEC registration fee, are estimated.
(2)  All expenses of the offering (excluding brokerage commissions) will be borne by the Registrant and not the selling stockholders.

ITEM 14.  INDEMNIFICATION OF DIRECTORS AND OFFICERS
 
Our Articles of Incorporation provide that liability of directors to us for monetary damages is eliminated to the full extent provided by Nevada law.  Under Nevada law, a director is not personally liable to us or our stockholders for monetary damages for breach of fiduciary duty as a director except for liability (i) for any breach of the director’s duty of loyalty to us or our stockholders; (ii) for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law; (iii) for authorizing the unlawful payment of a dividend or other distribution on our capital stock or the unlawful purchases of our capital stock; (iv) a violation of Nevada law with respect to conflicts of interest by directors; or (v) for any transaction from which the director derived any improper personal benefit.

The effect of this provision in our Articles of Incorporation is to eliminate our rights and our stockholders’ rights (through stockholders’ derivative suits) to recover monetary damages from a director for breach of the fiduciary duty of care as a director (including any breach resulting from negligent or grossly negligent behavior) except in the situations described in clauses (i) through (v) above.  This provision does not limit or eliminate our rights or the rights of our security holders to seek non-monetary relief, such as an injunction or rescission, in the event of a breach of a director’s duty of care or any liability for violation of the federal securities laws.

Insofar as indemnification for liabilities arising under the Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.
 
 

 
II-1

ITEM 15.  RECENT SALES OF UNREGISTERED SECURITIES
 
                   In the last three years, we have issued the following unregistered securities:

(i)
In connection with the Securities Exchange, we issued an aggregate of 8,714,973 unregistered shares of Common Stock and -0- warrants to security holders of Organic Alliance, Inc.
   
(ii)
We sold 200,000 shares of our common stock to two investors for $.25 per share.
 
(iii)
Following our April Merger we issued the following securities to the following individuals for consulting services:

         
Type of
     
Value
 
Consulting
Date
Name
Shares
Per Share
 
Services
April 2008
Gary Agron
    90,000
$0.60
 
Legal Services
August 2008
Christopher Kline
  100,000
$0.96
 
Investor Relations
August 2008
Corey Ruth
    10,000
$0.96
 
Medical Advisor
August 2008
Curt Hargis
  115,650
$0.96
 
Investor Relations/Public Relations
August 2008
Eli Saleeby
    10,000
$0.96
 
Medical Advisor
August 2008
Gail Morrison
    10,000
$0.96
 
Medical Advisor
August 2008
Gary Leysock
       8,000
$0.96
 
Investor Relations
August 2008
Harvey Synder
    10,000
$0.96
 
Medical Advisor
August 2008
KBK Ventures Inc
    10,000
$0.96
 
Investor Relations
August 2008
Lawrence Dellaquilla
       8,000
$0.96
 
Investor Relations
August 2008
Lor Terzian
    10,000
$0.96
 
Medical Advisor
August 2008
Patricia Reitz
  115,650
$0.96
 
Investor Relations
August 2008
Rick Basse
    30,000
$0.96
 
Accounting Services
August 2008
Tom Klein
    10,000
$0.96
 
Medical Advisor
           
Total
 
  537,300
     

 
(iv) 
During May 2008, we sold 16,666 shares of our Common Stock for $0.30 per share to one investor and 2,500,000 shares of our Common Stock for $0.40 per share to two investors.

The securities issuances described in items (i), (ii) and (iii) above were made in reliance upon the exemption provided in Section 4(2) of the Securities Act.  These issuances were to a limited number of investors, all of whom had a prior relationship with us, received their shares as employees or consultants and executed subscription agreements acknowledging they were familiar with our business operations and were taking the shares for investment and not for distribution. All such securities were marked with the customary restrictive legend prohibiting transfer except under certain circumstances.  No brokers were used in connection with the sales and no commissions were paid to anyone in connection therewith.

The shares issued in (iv) above were issued in reliance upon Rule 504 of Regulation D. The offering memorandum in connection with the offering was reviewed by the Texas Division of Securities. Less than $1,000,000 of our Common Stock was sold in the offering.
 

 
II-2

ITEM 16.  EXHIBIT INDEX

Number
 
Exhibit
 
3.1
 
Articles of Incorporation, as amended, of Registrant
 
3.2
 
Bylaws of Registrant
 
5.1
 
Opinion of Gary A. Agron
 
10.1
 
Exchange Agreement with Organic Alliance, Inc., a Texas corporation
 
23.1
 
Consent of Weaver & Martin, LLC, an independent registered public accounting firm
 
23.3
 
Consent of Gary A. Agron (see 5.1 above)
 

ITEM 17.  UNDERTAKINGS
 
                   The undersigned registrant hereby undertakes:

 (1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
 
 
i.
To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
     
 
ii.
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement.  Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 12% change in the maximum aggregate offering price set forth in the “Calculation of registration Fee” table in the effective registration statements; and
     
     
 
iii.
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

 (2)   
That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
   
 (3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
   
 (4)
Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act”) may be permitted to directors, officers and controlling persons of the small business issuer pursuant to the foregoing provisions, or otherwise, the small business issuer has been advised that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.

In the event that a claim for indemnification against such liabilities (other than the payment by the small business issuer of expenses incurred or paid by a director, officer or controlling person of the small business issuer in the successful defense of any action, suit or proceeding) is asserted by such director or controlling person in connection with the securities being registered, the small business issuer will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
 
II-3


(5)
That, for the purpose of determining liability under the securities Act of 1933 to any purchaser:

 
(i)
If the registrant is relying on Rule 430B:

   
(A)
Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
       
   
(B)
Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)9i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.  Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; or
       

 
(ii)
If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other prospectuses filed in reliance on rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.  Provided, however , that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(6)
That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:

The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

II-4

 
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
     
 
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
     
 
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
     
 
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
II-5

SIGNATURES

                   Pursuant to the requirements of the Securities Act, as amended, the Registrant has caused this Registration Statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized in San Antonio, Texas on August 12, 2008.

ORGANIC ALLIANCE, INC.
 
By:
 
/s/ Thomas Morrison                      
     Thomas Morrison
     Chief Executive Officer
 

Pursuant to the requirements of the Securities Act, as amended, this Registration Statement has been signed below by the following persons on August 12, 2008.

Signature
Title
   
/s/ Thomas Morrison
Chief Executive Officer, Chief Financial Officer and Director
Thomas Morrison
 
   
/s/ James Haworth
Director
James Haworth
 
   
/s/ Alicia Smith Kriese
Director
Alicia Smith Kriese
 
 
 
 

 
II-6


EXHIBIT INDEX


Number
 
Exhibit
 
3.1
 
Articles of Incorporation, as amended, of Registrant
 
3.2
 
Bylaws of Registrant
 
5.1
 
Opinion of Gary A. Agron
 
10.1
 
Exchange Agreement with Organic Alliance, Inc., a Texas corporation
 
23.1
 
Consent of Weaver & Martin, LLC, an independent registered public accounting firm
 
23.3
 
Consent of Gary A. Agron (see 5.1 above)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

EX-3.1 2 ex3-1.htm ARTICLES OF INCORPORATION, AS AMENDED, OF REGISTRANT ex3-1.htm
Exhibit 3.1
 
 
 
     
FILED #C25581-07
 
SEP 19 2001
 
IN THE OFFICE OF
/s/ Dean Heller
DEAN HELLER SECRETARY OF STATE
 
       
       
 
 
 
 
ARTICLES OF INCORPORATION
OF
NB DESIGN & LICENSING, INC.

 
The undersigned who, if a natural person, is eighteen years of age or older, hereby establishes a corporation pursuant to the Nevada Revised Statutes and adopts the following Articles of Incorporation:

 
ARTICLE I
 

 
Name
 
The name of the corporation is: NB Design & Licensing, Inc.
 

 
ARTICLE II
 
Purposes and Powers
 
The corporation shall have and may exercise all of the rights, powers and privileges now or hereafter conferred upon corporations organized under the laws of Nevada. In addition, the corporation may do everything necessary, suitable or proper for the accomplishment of any of its corporate purposes. The corporation may conduct part or all of its business in any part of Nevada, the United States or the world and may hold, purchase, mortgage, lease and convey real and personal property in any of such places.
 

 
ARTICLE III
 
Capital Stock
 
1.           Authorized Shares of Common Stock.  The aggregate number of shares of stock which the corporation shall have authority to issue is 60,000,000 shares of $.0001 par value Common Stock. The shares of this class of Common Stock shall have unlimited voting rights and shall constitute the sole voting group of the corporation, except to the extent any additional voting group or groups may hereafter be established in accordance with the Nevada Revised Statutes. The shares of this class shall also be entitled to receive the net assets of the corporation upon dissolution.
 
2.           Voting Rights; Denial of Preemptive Rights.  Each shareholder of record shall have one vote for each share of stock standing in his name on the books of the corporation and entitled to Vote, except that in the election of directors each shareholder shall have as many votes for each share held by him as there am directors to be elected and for whose election the shareholder has a right to vote. Cumulative voting shall not be permitted in the election of directors or otherwise. Preemptive rights to purchase additional shares of stock are denied.
 
 
 

 
 
 
3.           Authorized Shares of Preferred Stock. The corporation shall have the authority to issue 10,000,000 shares of $.0001 par value Preferred Stock, which may be issued in one or more series at the discretion of the board of directors. In establishing a series, the board of directors shall give to it a distinctive designation so as to distinguish it from the shares of all other series and classes, shall fix the number of shares in such series, and the preferences, lights and restrictions thereof All shares of any one series shall be alike in every particular except as otherwise provided by these Articles of Incorporation or the Nevada Revised Statutes.

ARTICLE  IV
 
Initial Board of Directors
 
The number of directors of the corporation shall be fixed by the bylaws, or if the bylaws fail to fix such a number, then by resolution adopted from time to time by the board of directors, provided that the number of directors shall not be less than one. Three directors shall constitute the initial board of directors. The following persons are elected to serve as the Corporation's initial directors until the first annual meeting of shareholders or until their successors are duly elected and qualified­

Name
Address
   
Jack D. Kelley
3118 West Thomas Road, Suite 708
Phoenix, Arizona 85017
 
Derold L. Kelley
3118 West Thomas Road, Suite 708
Phoenix, Arizona 85017
 
James A. Eller
26 West Dry Creek Circle, Suite 600
Littleton, Colorado 80120
 

 
ARTICLE V
 

 
Registered Office and Resident Agent
 

The street address of the initial registered office of the corporation is 1100 East William Street Suite 207, Carson City, Nevada 89701. The name of the initial resident agent of the Corporation at such address is the National Registered Agents, Inc. of Nevada.

 
ARTICLE VI
 
Principal Office
 

The address of the initial principal office of the corporation is 3118 West Thomas Road, Suite 708, Phoenix, Arizona 85017.
 
 
 
 

 
 
 
ARTICLE VII
 
Management of the Business

The following provisions are inserted for the management of the business and for the conduct of the affairs of the corporation, and the same are in furtherance of and not in limitation or exclusion of the powers conferred by law.

1.     Conflicting Interest Transactions.     As used in this paragraph, "conflicting interest transaction" means any of the following:     (i) a loan or other assistance by the corporation to a director of the corporation or to an entity in which a director of the corporation is a director or officer or has a financial interest; (ii) a guaranty by the corporation of an obligation of a director of the corporation or of an obligation of an entity in which a director of the corporation is a director or officer or has a financial interest; or (iii) a contract or transaction between the corporation and a director of the corporation or between the corporation and an entity in which a director of the corporation is a director or officer or has a financial interest. No conflicting interest transaction shall be void or voidable, be enjoined, be set aside, or give rise to an award of damages or other sanctions in a proceeding by a shareholder or by or in the right of the corporation, solely because the conflicting interest transaction involves a director of the corporation or an entity in which a director of the corporation is a director or officer or has a financial interest, or solely because the director is present at or participates in the meeting of the corporation's board of directors or of the committee of the board of directors which authorizes, approves or ratifies a conflicting interest transaction. or solely because the director's vote is counted for such purpose if, (A) the material facts as to the director's relationship or interest and as to the conflicting interest transaction are disclosed or are known to the board of directors or the committee. and the board of directors or committee in good faith authorizes,  approves or ratifies the conflicting interest transaction by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors are less than a quorum; or (B) the material facts as to the director's relationship or interest and as to the conflicting interest transaction are disclosed or are known to the shareholders entitled to vote thereon, and the conflicting interest transaction is specifically authorized, approved or ratified in good faith by x vote of the shareholders; or (C) a conflicting interest transaction is fair as to the corporation as of the time it is authorized, approved or ratified by the board of directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the board of directors or of a committee which authorizes, approves or ratifies the conflicting interest transaction.

2.      Indemnification The corporation shall indemnify, to the maximum extent permitted by law, any person who is or was a director, officer, agent, fiduciary or employee of the corporation against any claim liability or expense arising against or incurred by such person made party to a proceeding because he is or was a director, officer, agent, fiduciary or employee of the corporation or because he is or was serving another entity or employee benefit plan as a director, officer, partner. trustee, employee, fiduciary or agent at the corporation's request. The corporation shall further have the authority to the maximum extent permitted by law to purchase and maintain insurance providing such indemnification.
 
 
 
 
 

 
 
 
3.     Limitation on Director's or Officer's Liability.    No director or officer of the corporation shall be personally liable to the corporation or any of its shareholders far damages for breach of fiduciary duty as a director or officer involving any act or omission of any such director or officer provided, however, that the foregoing provision shall not eliminate or limit the liability of a director or officer for acts or omissions which involve intentional misconduct, fraud or a knowing violation of law, or the payment of dividends in violation of Section 78.300 of the Nevada Revised Statutes. Any repeal or modification of this Article by the shareholders of the corporation shall be prospective only, and shall not adversely affect any limitation on the personal liability of a director or officer of the corporation for acts or omissions prior to such repeal or modification.

 
ARTICLE VIII
 
Incorporator
 
The name and address of the incorporator is:
 
Michael J Tauger
5443 DTC Parkway, Suite 520
Greenwood Village, CO 80111
 

 
Dated this 17th day of September, 2001.
 
    INCORPORATOR:  
     
       
 
 
National Registered Agents, Inc. of Nevada hereby accepts appointment as resident agent. for the above-named corporation.
 
 
     
    Authorized Signature of Resident Agent or Resident Agent Company
   
 
 
 
 
9/17/01
Date
 
 
 
 

 

 

 
Filing Acknowledgement
   
June 2, 2008
Job Number
C20080602-1250
Corporation Number
C25581-2001
 
 
Filing Description
 
Amendment
Document Filing
Number
20080373149-57
Date/Time of Filing
 
June 2, 2008 10:45:42 AM
 
Corporate Name
ORGANIC ALLIANCE, INC.
Resident Agent
 
 
 
 
 
 
 
 
 
 
 
 
The attached document(s) were filed with the Nevada Secretary of State, Commercial Recordings Division. The filing date and time have been affixed to each document, indicating the date and time of filing. A filing number is also affixed and can be used to reference this document in the future.
 
   
Respectfully,
 
ROSS MILLER
Secretary of State
 
Commercial Recording Division
202 N. Carson Street
Carson City, Nevada 89701-4069
Telephone: (775) 684-5708
Fax (775) 684-7138
 


ROSS MILLER
Secretary of State
204 North Carson Street, Ste 1
Carson City, Nevada 89701-4299
(775) 684 5708
Website: secretaryofstate.biz
 
     
         


 
Certificate of Amendment
(PURSUANT TO NRS 78.385 AND 78.390)
 
 
Filed in the office of
Ross Miller
Secretary of State
State of Nevada
Document Number
20080373149-57
Filing Date and Time
06/02/2008 10:45 AM
Entity Number
C25581-2001


USE BLACK INK ONLY - DO NOT HIGHLIGHT
ABOVE SPACE IS FOR OFFICE USE ONLY

Certificate of Amendment to Articles of Incorporation
For Nevada Profit Corporations
(Pursuant to NRS 78.385 and 78.390 - After Issuance of Stock)

1. Name of corporation:
NB Design & Licensing, Inc.

2. The articles have been amended as follows (provide article numbers, if available):

Article I

Name:

Name of the corporation is: Organic Alliance, Inc.

3. The vote by which the stockholders holding shares in the corporation entitling them to exercise at least a majority of the voting power, or such greater proportion of the voting power as may be required in the case of a vote by classes or series, or as may be required by the provisions of the* articles of incorporation have voted in favor of the amendment is:     58%

4. Effective date of filing (optional):   6/16/08
(must not be later than 90 days after the certificate is filed)

5. Officer Signature (Required):   
*If any proposed amendment would alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series affected by the amendment regardless of limitations or restrictions on the voting power thereof.

IMPORTANT: Failure to include any of the above information and submit the proper fees may cause this filing to be rejected.

This form must be accompanied by appropriate fees.
Nevada Secretary of State AM 78.385 Amend 2007
Revised on: 01/01/07
 
 
 
 


EX-3.2 3 ex3-2.htm BYLAWS OF REGISTRANT ex3-2.htm
 
Exhibit 3.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OF
NB DESIGN & LICENSING, INC.
a Nevada corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
TABLE OF CONTENTS
 
Page
ARTICLE I
1
Offices
1
ARTICLE II
1
Shareholders
1
Section 1.  Annual Meeting
1
Section 2.  Special Meetings
1
Section 3.  Place of Meeting
2
Section 4.  Notice of Meeting
2
Section 5.  Fixing of Record Date
3
Section 6.  Voting Lists
4
Section 7.  Recognition Procedure for Beneficial Owners
4
Section 8.  Quorum and Manner of Acting
4
Section 9.  Proxies
5
Section 10.  Voting of Shares
6
Section 11.  Corporation’s Acceptance of Votes
6
Section 12.  Informal Action by Shareholders
7
Section 13.  Meetings by Telecommunication
8
ARTICLE III
8
Board of Directors
8
Section 1.  General Powers
8
Section 2.  Number, Qualifications and Tenure
8
Section 3.  Vacancies
8
Section 4.  Regular Meetings
9
Section 5.  Special Meetings
9
Section 6.  Notice
9
Section 7.  Quorum
10
Section 8.  Manner of Acting
10
Section 9.  Compensation
10
Section 10.  Presumption of Assent
10
Section 11.  Committees
10
Section 12.  Informal Action by Directors
11
Section 13.  Telephonic Meetings
11
Section 14.  Standard of Care
11
ARTICLE IV
12
Officers and Agents
12
Section 1.  General
12
Section 2.  Appointment and Term of Office
12
Section 3.  Resignation and Removal
12
Section 4.  Vacancies
12
Section 5.  President
13
Section 6.  Vice Presidents
13
Section 7.  Secretary
13
Section 8.  Treasurer
14
 
 
 

 
 
   
ARTICLE V
15
Stock
15
Section 1.  Certificates
15
Section 2.  Consideration for Shares
15
Section 3.  Lost Certificates
16
Section 4.  Transfer of Shares
16
Section 5.  Transfer Agent, Registrars and Paying Agents
16
ARTICLE VI
16
Indemnification of Certain Persons
16
Section 1.  Indemnification
16
Section 2.  Right to Indemnification
17
Section 3.  Effect of Termination of Action
17
Section 4.  Groups Authorized to Make Indemnification Determination
17
Section 5.  Court-Ordered Indemnification
18
Section 6.  Advance of Expenses
18
Section 7.  Additional Indemnification to Certain Persons Other Than Directors
19
Section 8.  Witness Expenses
19
Section 9.  Report to Shareholders
19
ARTICLE VII
19
Provisions of Insurance
19
Section 1.  Provision of Insurance
19
ARTICLE VIII
20
Miscellaneous
20
Section 1.  Seal
20
Section 2.  Fiscal Year
20
Section 3.  Amendments
20
Section 4.  Receipt of Notices by the Corporation
20
Section 5.  Gender
20
Section 6.  Conflicts
20
Section 7.  Definitions
20
 
 
 
Effective: September 19, 2001
 
 
 

 
BYLAWS
OF
NB DEIGN & LICENSING, INC.


ARTICLE I
Offices

The principal office of the corporation shall be designated from time to time by the corporation and may be within or outside of Nevada.

The corporation may have such other offices, either within or outside Nevada, as the board of directors may designate or as the business of the corporation may require from time to time.

The registered office of the corporation required by the Nevada General Corporation Law to be maintained in Nevada may be, but need not be, identical with the principal office, and the address of the registered office may be changed from time to time by the board of directors.


ARTICLE II
Shareholders

Section 1.  Annual Meeting.  The annual meeting of the shareholders shall be held during the month of May of each year on a date and at a time fixed by the board of directors of the corporation (or by the president in the absence of action by the board of directors), beginning with the year 2002, for the purpose of electing directors and for the transaction of such other business as may come before the meeting.  If the election of directors is not held on the day fixed as provided herein for any annual meeting of the shareholders, or any adjournment thereof, the board of directors shall cause the election to be held at a special meeting of the shareholders as soon thereafter as it may conveniently be held.

A shareholder may apply to the district court in the county in Nevada where the corporation’s principal office is located or, if the corporation has no principal office in Nevada, to the district court of the county in which the corporation’s registered office is located to seek an order that a shareholder meeting be held (i) if an annual meeting was not held within six months after the close of the corporation’s most recently ended fiscal year or fifteen months after its last annual meeting, whichever is earlier, or (ii) if the shareholder participated in a proper call of or proper demand for a special meeting and notice of the special meeting was not given within thirty days after the date of the call or the date the last of the demands necessary to require calling of the meeting was received by the corporation pursuant to Nevada corporate law, or the special meeting was not held in accordance with the notice.

Section 2.  Special Meetings.  Unless otherwise prescribed by statute, special meetings of the shareholders may be called for any purpose by the president or by the board of directors.  The president shall call a special meeting of the shareholders if the corporation receives one or more written demands for the meeting, stating the purpose or purposes for which it is to be held, signed and dated by holders of shares representing at least ten percent of all the votes entitled to be cast on any issue proposed to be considered at the meeting.
 
 
 
 
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Section 3.  Place of Meeting.   The board of directors may designate any place, either within or outside Nevada, as the place for any annual meeting or any special meeting called by the board of directors.  A waiver of notice signed by all shareholders entitled to vote at a meeting may designate any place, either within or outside Nevada, as the place for such meeting.  If no designation is made, or if a special meeting is called other than by the board, the place of meeting shall be the principal office of the corporation.

Section 4.  Notice of Meeting.  Written notice stating the place, date, and hour of the meeting shall be given not less than ten nor more than sixty days before the date of the meeting, except that (i) if the number of authorized shares is to be increased, at least thirty days’ notice shall be given, or (ii) any other longer notice period is required by the Nevada General Corporation Law.  The secretary shall be required to give such notice only to shareholders entitled to vote at the meeting except as otherwise required by the Nevada General Corporation Law.

Notice of a special meeting shall include a description of the purpose or purposes of the meeting.  Notice of an annual meeting need not include a description of the purpose or purposes of the meeting except the purpose or purposes shall be stated with respect to (i) an amendment to the articles of incorporation of the corporation, (ii) a merger or share exchange in which the corporation is a party and, with respect to a share exchange, in which the corporation’s shares will be acquired, (iii) a sale, lease, exchange or other disposition, other than in the usual and regular course of business, of all or substantially all of the property of the corporation or of another entity which this corporation controls, in each case with or without the goodwill, (iv) a dissolution of the corporation, (v) restatement of the articles of incorporation, or (vi) any other purpose for which a statement of purpose is required by the Nevada General Corporation Law.  Notice shall be given personally or by mail, private carrier, telegraph, teletype, electronically transmitted facsimile or other form of wire or wireless communication by or at the direction of the president, the secretary, or the officer or persons calling the meeting, to each shareholder of record entitled to vote at such meeting.  If mailed and if in a comprehensible form, such notice shall be deemed to be given and effective when deposited in the United States mail, properly addressed to the shareholder at his address as it appears in the corporation’s current record of shareholders, with first class postage prepaid.  If notice is given other than by mail, and provided that such notice is in a comprehensible form, the notice is given and effective on the date actually received by the shareholder.

If requested by the person or persons lawfully calling such meeting, the secretary shall give notice thereof at corporate expense.  No notice need be sent to any shareholder if three successive notices mailed to the last known address of such shareholder have been returned as undeliverable until such time as another address for such shareholder is made known to the corporation by such shareholder.  In order to be entitled to receive notice of any meeting, a shareholder shall advise the corporation in writing of any change in such shareholder’s mailing address as shown on the corporation’s books and records.
 
 
 
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When a meeting is adjourned to another date, time or place, notice need not be given of the new date, time or place if the new date, time or place of such meeting is announced before adjournment at the meeting at which the adjournment is taken.  At the adjourned meeting the corporation may transact any business which may have been transacted at the original meeting.  If the adjournment is for more than 120 days, or if a new record date is fixed for the adjourned meeting, a new notice of the adjourned meeting shall be given to each shareholder of record entitled to vote at the meeting as of the new record date.

A shareholder may waive notice of a meeting before or after the time and date of the meeting by a writing signed by such shareholder.  Such waiver shall be delivered to the corporation for filing with the corporate records, but this delivery and filing shall not be conditions to the effectiveness of the waiver.  Further, by attending a meeting either in person or by proxy, a shareholder waives objection to lack of notice or defective notice of the meeting unless the shareholder objects at the beginning of the meeting to the holding of the meeting or the transaction of business at the meeting because of lack of notice or defective notice.  By attending the meeting, the shareholder also waives any objection to consideration at the meeting of a particular matter not within the purpose or purposes described in the meeting notice unless the shareholder objects to considering the matter when it is presented.

Section 5.  Fixing of Record Date.   For the purpose of determining shareholders entitled to (i) notice of or vote at any meeting of shareholders or any adjournment thereof, (ii) receive distributions or share dividends, (iii) demand a special meeting, or (iv) make a determination of shareholders for any other proper purpose, the board of directors may fix a future date as the record date for any such determination of shareholders, such date in any case to be not more than seventy days, and, in case of a meeting of shareholders, not less than ten days, prior to the date on which the particular action requiring such determination of shareholders is to be taken.  If no record date is fixed by the directors, the record date shall be the day before the notice of the meeting is given to shareholders, or the date on which the resolution of the board of directors providing for a distribution is adopted, as the case may be.  When a determination of shareholders entitled to vote at any meeting of shareholders is 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.  Unless otherwise specified when the record date is fixed, the time of day for such determination shall be as of the corporation’s close of business on the record date.

Notwithstanding the above, the record date for determining the shareholders entitled to take action without a meeting or entitled to be given notice of action so taken shall be the date a writing upon which the action is taken is first received by the corporation.  The record date for determining shareholders entitled to demand a special meeting shall be the date of the earliest of any of the demands pursuant to which the meeting is called.
 
 
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Section 6.  Voting Lists.  After a record date is fixed for a shareholders’ meeting, the secretary shall make, at the earlier of ten days before such meeting or two business days after notice of the meeting has been given, a complete list of the shareholders entitled to be given notice of such meeting or any adjournment thereof.  The list shall be arranged by voting groups and within each voting group by class or series of shares, shall be in alphabetical order within each class or series, and shall show the address of and the number of shares of each class or series held by each shareholder.  For the period beginning the earlier of ten days prior to the meeting or two business days after notice of the meeting is given and continuing through the meeting and any adjournment thereof, this list shall be kept on file at the principal office of the corporation, or at a place (which shall be identified in the notice) in the city where the meeting will be held.  Such list shall be available for inspection on written demand by any shareholder (including for the purpose of this Section 6 any holder of voting trust certificates) or his agent or attorney during regular business hours and during the period available for inspection.  The original stock transfer books shall be prima facie evidence as to who are the shareholders entitled to examine such list or transfer books or to vote at any meeting of shareholders.

Any shareholder, his agent or attorney may copy the list during regular business hours and during the period it is available for inspection, provided (i) the shareholder has been a shareholder for at least three months immediately preceding the demand or holds at least five percent of all outstanding shares of any class of shares as of the date of the demand, (ii) the demand is made in good faith and for a purpose reasonably related to the demanding shareholder’s interest as a shareholder, (iii) the shareholder describes with reasonable particularity the purpose and the records the shareholder desires to inspect, (iv) the records are directly connected with the described purpose, and (v) the shareholder pays a reasonable charge covering the costs of labor and material for such copies, not to exceed the estimated cost of production and reproduction.

Section 7.  Recognition Procedure for Beneficial Owners.  The board of directors may adopt by resolution a procedure whereby a shareholder of the corporation may certify in writing to the corporation that all or a portion of the shares registered in the name of such shareholder are held for the account of a specified person or persons.  The resolution may set forth (i) the types of nominees to which it applies, (ii) the rights or privileges that the corporation will recognize in a beneficial owner, which may include rights and privileges other than voting, (iii) the form of certification and the information to be contained therein, (iv) if the certification is with respect to a record date, the time within which the certification must be received by the corporation, (v) the period for which the nominee’s use of the procedure is effective, and (vi) such other provisions with respect to the procedure as the board deems necessary or desirable.  Upon receipt by the corporation of a certificate complying with the procedure established by the board of directors, the persons specified in the certification shall be deemed, for the purpose or purposes set forth in the certification, to be the registered holders of the number of shares specified in place of the shareholder making the certification.

Section 8.  Quorum and Manner of Acting.   A majority of the votes entitled to be cast on a matter by a voting group represented in person or by proxy, shall constitute a quorum of that voting group for action on the matter.  If less than a majority of such votes are represented at a meeting, a majority of the votes so represented may adjourn the meeting from time to time without further notice, for a period not to exceed 120 days for any one adjournment.  If a quorum is present at such adjourned meeting, any business may be transacted which might have been transacted at the meeting as originally noticed.  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, unless the meeting is adjourned and a new record date is set for the adjourned meeting.
 
 
 
 
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If a quorum exists, action on a matter other than the election of directors by a voting group is approved if the votes cast within the voting group favoring the action exceed the votes cast within the voting group opposing the action, unless the vote of a greater number or voting by classes is required by law or the articles of incorporation.

Section 9.  Proxies.  At all meetings of shareholders, a shareholder may vote by proxy by signing an appointment form or similar writing, either personally or by his duly authorized attorney-in-fact.  A shareholder may also appoint a proxy by transmitting or authorizing the transmission of a telegram, teletype, or other electronic transmission providing a written statement of the appointment to the proxy, a proxy solicitor, proxy support service organization, or other person duly authorized by the proxy to receive appointments as agent for the proxy, or to the corporation.  The transmitted appointment shall set forth or be transmitted with written evidence from which it can be determined that the shareholder transmitted or authorized the transmission of the appointment.  The proxy appointment form or similar writing shall be filed with the secretary of the corporation before or at the time of the meeting.  The appointment of a proxy is effective when received by the corporation and is valid for eleven months unless a different period is expressly provided in the appointment form or similar writing.

Any complete copy, including an electronically transmitted facsimile, of an appointment of a proxy may be substituted for or used in lieu of the original appointment for any purpose for which the original appointment could be used.

Revocation of a proxy does not affect the right of the corporation to accept the proxy’s authority unless (i) the corporation had notice that the appointment was coupled with an interest and notice that such interest is extinguished is received by the secretary or other officer or agent authorized to tabulate votes before the proxy exercises his authority under the appointment, or (ii) other notice of the revocation of the appointment is received by the secretary or other officer or agent authorized to tabulate votes before the proxy exercises his authority under the appointment.  Other notice of revocation may, in the discretion of the corporation, be deemed to include the appearance at a shareholders’ meeting of the shareholder who granted the proxy and his voting in person on any matter subject to a vote at such meeting.

The death or incapacity of the shareholder appointing a proxy does not affect the right of the corporation to accept the proxy’s authority unless notice of the death or incapacity is received by the secretary or other officer or agent authorized to tabulate votes before the proxy exercises his authority under the appointment.

The corporation shall not be required to recognize an appointment made irrevocable if it has received a writing revoking the appointment signed by the shareholder (including a shareholder who is a successor to the shareholder who granted the proxy) either personally or by his attorney-in-fact, notwithstanding that the revocation may be a breach of an obligation of the shareholder to another person not to revoke the appointment.
 
 
 
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Subject to Section 11 and any express limitation on the proxy’s authority appearing on the appointment form, the corporation is entitled to accept the proxy’s vote or other action as that of the shareholder making the appointment.

Section 10.  Voting of Shares.   Each outstanding share, regardless of class, shall be entitled to one vote, except in the election of directors, and each fractional share shall be entitled to a corresponding fractional vote on each matter submitted to a vote at a meeting of shareholders, except to the extent that the voting rights of the shares of any class or classes are limited or denied by the articles of incorporation as permitted by the Nevada Business Corporation Code.  Cumulative voting shall not be permitted in the election of directors or for any other purpose.  Each record holder of stock shall be entitled to vote in the election of directors and shall have as many votes for each of the shares owned by him as there are directors to be elected and for whose election he has the right to vote.

At each election of directors, that number of candidates equaling the number of directors to be elected, having the highest number of votes cast in favor of their election, shall be elected to the board of directors.

Except as otherwise ordered by a court of competent jurisdiction upon a finding that the purpose of this Section would not be violated in the circumstances presented to the court, the shares of the corporation are not entitled to be voted if they are owned, directly or indirectly, by a second corporation, domestic or foreign, and the first corporation owns, directly or indirectly, a majority of the shares entitled to vote for directors of the second corporation except to the extent the second corporation holds the shares in a fiduciary capacity.

Redeemable shares are not entitled to be voted 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.

Section 11.  Corporation’s Acceptance of Votes.  If the name signed on a vote, consent, waiver, proxy appointment, or proxy appointment revocation corresponds to the name of a shareholder, the corporation, if acting in good faith, is entitled to accept the vote, consent, waiver, proxy appointment or proxy appointment revocation and give it effect as the act of the shareholder.  If the name signed on a vote, consent, waiver, proxy appointment or proxy appointment revocation does not correspond to the name of a shareholder, the corporation, if acting in good faith, is nevertheless entitled to accept the vote, consent, waiver, proxy appointment or proxy appointment revocation and to give it effect as the act of the shareholder if:

 
(i)
the shareholder is an entity and the name signed purports to be that of an officer or agent of the entity;
 
 
 
 
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(ii)
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, proxy appointment or proxy appointment revocation;

 
(iii)
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, proxy appointment or proxy appointment revocation;

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

 
(v)
two or more persons are the shareholder as co-tenants or fiduciaries and the name signed purports to be the name of at least one of the co-tenants or fiduciaries, and the person signing appears to be acting on behalf of all the co-tenants or fiduciaries; or

 
(vi)
the acceptance of the vote, consent, waiver, proxy appointment or proxy appointment revocation is otherwise proper under rules established by the corporation that are not inconsistent with this Section 11.

The corporation is entitled to reject a vote, consent, waiver, proxy appointment or proxy appointment revocation 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.

Neither the corporation nor its officers nor any agent who accepts or rejects a vote, consent, waiver, proxy appointment or proxy appointment revocation in good faith and in accordance with the standards of this Section is liable in damages for the consequences of the acceptance or rejection.

Section 12.  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 before or after the action, a written consent (or counterparts thereof) that sets forth the action so taken is signed by  shareholders holding at least a majority of the voting power entitled to vote with respect to the subject matter thereof except if a different proportion of voting power is required for such an action at a meeting, then that proportion of written consents is required.  Such consent shall have the same force and effect as a vote of the shareholders and may be stated as such in any document.  Action taken under this Section 12 is effective as of the date the last writing necessary to effect the action is received by the corporation, unless all of the writings specify a different effective date, in which case such specified date shall be the effective date for such action.  The record date for determining shareholders entitled to take action without a meeting is the date the corporation first receives a writing upon which the action is taken.
 
 
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Any shareholder who has signed a writing describing and consenting to action taken pursuant to this Section 12 may revoke such consent by a writing signed by the shareholder describing the action and stating that the shareholder’s prior consent thereto is revoked, if such writing is received by the corporation before the effectiveness of the action.

In no instance where action is authorized by written consent need a meeting of shareholders be called or notice given.

Section 13.  Meetings by Telecommunication.  Any or all of the shareholders may participate in an annual or special shareholders’ meeting by, or the meeting may be conducted through the use of, any means of communication by which all persons participating in the meeting may hear each other during the meeting.  A shareholder participating in a meeting by this means is deemed to be present in person at the meeting.


ARTICLE III
Board of Directors

Section 1.  General Powers.  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, its board of directors, except as otherwise provided in the Nevada General Corporation Law or the articles of incorporation.

Section 2.  Number, Qualifications and Tenure.  The number of directors of the corporation shall be fixed from time to time by the board of directors, within a range of no less than one or more than nine, but no decrease in the number of directors shall have the effect of shortening the term of any incumbent director.  A director shall be a natural person who is eighteen years of age or older.  A director need not be a resident of Nevada or a shareholder of the corporation.

Directors shall be elected at each annual meeting of shareholders.  Each director shall hold office until the next annual meeting of shareholders following his election and thereafter until his successor shall have been elected and qualified.  Directors shall be removed in the manner provided by the Nevada General Corporation Law.  Any director may be removed by the shareholders of the voting group that elected the director, with or without cause, at a meeting called for that purpose.  The notice of the meeting shall state that the purpose or one of the purposes of the meeting is removal of the director.  A director may be removed only if the number of votes cast in favor of removal exceeds the number of votes cast against removal.
 
Section 3.  Vacancies.  Any director may resign at any time by giving written notice to the secretary.  Such resignation shall take effect at the time the notice is received by the secretary unless the notice specifies a later effective date.  Unless otherwise specified in the notice of resignation, the corporation’s acceptance of such resignation shall not be necessary to make it effective.  Any vacancy on the board of directors may be filled by the affirmative vote of a majority of the shareholders at a special meeting called for that purpose or by the board of directors.  If the directors remaining in office constitute fewer than a quorum of the board, the directors may fill the vacancy by the affirmative vote of a majority of all the directors remaining in office.  If elected by the directors, the director shall hold office until the next annual shareholders’ meeting at which directors are elected.  If elected by the shareholders, the director shall hold office for the unexpired term of his predecessor in office; except that, if the director’s predecessor was elected by the directors to fill a vacancy, the director elected by the shareholders shall hold office for the unexpired term of the last predecessor elected by the shareholders.
 
 
 
 
 
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Section 4.  Regular Meetings.  A regular meeting of the board of directors shall be held without notice 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, either within or outside Nevada, for the holding of additional regular meetings without other notice.

Section 5.  Special Meetings.  Special meetings of the board of directors may be called by or at the request of the president or any one (1) of the directors.  The person or persons authorized to call special meetings of the board of directors may fix any place, either within or outside Nevada, as the place for holding any special meeting of the board of directors called by them.

Section 6.  Notice.  Notice of the date, time and place of any special meeting shall be given to each director at least two days prior to the meeting by written notice either personally delivered or mailed to each director at his business address, or by notice transmitted by private courier, telegraph, telex, electronically transmitted facsimile or other form of wire or wireless communication.  If mailed, such notice shall be deemed to be given and to be effective on the earlier of (i) five days after such notice is deposited in the United States mail, properly addressed, with first class postage prepaid, or (ii) the date shown on the return receipt, if mailed by registered or certified mail return receipt requested, provided that the return receipt is signed by the director to whom the notice is addressed.  If notice is given by telex, electronically transmitted facsimile or other similar form of wire or wireless communication, such notice shall be deemed to be given and to be effective when sent, and with respect to a telegram, such notice shall be deemed to be given and to be effective when the telegram is delivered to the telegraph company.  If a director has designated in writing one or more reasonable addresses or facsimile numbers for delivery of notice to him, notice sent by mail, telegraph, telex, electronically transmitted facsimile or other form of wire or wireless communication shall not be deemed to have been given or to be effective unless sent to such addresses or facsimile numbers, as the case may be.

A director may waive notice of a meeting before or after the time and date of the meeting by a writing signed by such director.  Such waiver shall be delivered to the secretary for filing with the corporate records, but such delivery and filing shall not be conditions to the effectiveness of the waiver.  Further, a director’s attendance at or participation in a meeting waives any required notice to him of the meeting unless at the beginning of the meeting, or promptly upon his later arrival, the director objects to holding the meeting or transacting business at the meeting because of lack of notice or defective notice and does not thereafter vote for or assent to action taken at the meeting.  Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the board of directors need be specified in the notice or waiver of notice of such meeting.
 
 
 
 
 
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Section 7.  Quorum.  A majority of the number of directors fixed by the board of directors pursuant to Article III, Section 2 or, if no number is fixed, a majority of the number in office immediately before the meeting begins, shall constitute a quorum for the transaction of business at any meeting of the board of directors.

Section 8.  Manner of Acting.  The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors.

Section 9.  Compensation.  By resolution of the board of directors, any director may be paid any one or more of the following:  his expenses, if any, of attendance at meetings, a fixed sum for attendance at each meeting, a stated salary as director, or such other compensation as the corporation and the director may reasonably agree upon.  No such payment shall preclude any director from serving the corporation in any other capacity and receiving compensation therefor.

Section 10.  Presumption of Assent.  A director of the corporation who is present at a meeting of the board of directors or committee of the board at which action on any corporate matter is taken shall be presumed to have assented to all action taken at the meeting unless (i) the director objects at the beginning of the meeting, or promptly upon his arrival, to the holding of the meeting or the transaction of business at the meeting and does not thereafter vote for or assent to any action taken at the meeting, (ii) the director contemporaneously requests that his dissent or abstention as to any specific action taken be entered in the minutes of the meeting, or (iii) the director causes written notice of his dissent or abstention as to any specific action to be received by the presiding officer of the meeting before its adjournment or by the secretary promptly after the adjournment of the meeting.  A director may dissent to a specific action at a meeting, while assenting to others.  The right to dissent to a specific action taken at a meeting of the board of directors or a committee of the board shall not be available to a director who voted in favor of such action.

Section 11.  Committees.  By resolution adopted by a majority of all the directors in office when the action is taken, the board of directors may designate from among its members an executive committee and one or more other committees, and appoint one or more members of the board of directors to serve on them.  To the extent provided in the resolution, each committee shall have all the authority of the board of directors, except that no such committee shall have the authority to (i) authorize distributions, (ii) approve or propose to shareholders actions or proposals required by the Nevada General Corporation Law to be approved by shareholders, (iii) fill vacancies on the board of directors or any committee thereof, (iv) amend articles of incorporation, (v) adopt, amend or repeal the bylaws, (vi) approve a plan of merger not requiring shareholder approval, (vii) authorize or approve the reacquisition of shares unless pursuant to a formula or method prescribed by the board of directors, or (viii) authorize or approve the issuance or sale of shares, or contract for the sale of shares or determine the designations and relative rights, preferences and limitations of a class or series of shares, except that the board of directors may authorize a committee or officer to do so within limits specifically prescribed by the board of directors.  The committee shall then have full power within the limits set by the board of directors to adopt any final resolution setting forth all preferences, limitations and relative rights of such class or series and to authorize an amendment of the articles of incorporation stating the preferences, limitations and relative rights of a class or series for filing with the Secretary of State under the Nevada General Corporation Law.
 
 
 
 
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Sections 4, 5, 6, 7, 8 or 12 of Article III, which govern meetings, notice, waiver of notice, quorum, voting requirements and action without a meeting of the board of directors, shall apply to committees and their members appointed under this Section 11.

Neither the designation of any such committee, the delegation of authority to such committee, nor any action by such committee pursuant to its authority shall alone constitute compliance by any member of the board of directors or a member of the committee in question with his responsibility to conform to the standard of care set forth in Article III, Section 14 of these bylaws.

Section 12.  Informal Action by Directors.  Any action required or permitted to be taken at a meeting of the directors or any committee designated by the board of directors may be taken without a meeting if a written consent (or counterparts thereof) that sets forth the action so taken is signed by all of the directors entitled to vote with respect to the action taken.  Such consent shall have the same force and effect as a unanimous vote of the directors or committee members and may be stated as such in any document.  Unless the consent specifies a different effective time or date, action taken under this Section 12 is effective at the time or date the last director signs a writing describing the action taken, unless, before such time, any director has revoked his consent by a writing signed by the director and received by the president or the secretary of the corporation.

Section 13.  Telephonic Meetings.  The board of directors may permit any director (or any member of a committee designated by the board) to participate in a regular or special meeting of the board of directors or a committee thereof through the use of any means of communication by which all directors participating in the meeting can hear each other during the meeting.  A director participating in a meeting in this manner is deemed to be present in person at the meeting.
 
Section 14.  Standard of Care.  A director shall perform his duties as a director, including without limitation his duties as a member of any committee of the board, in good faith, in a manner he reasonably believes to be in the best interests of the corporation, and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.  In performing his duties, a director shall be entitled to rely on information, opinions, reports or statements, including financial statements and other financial data, in each case prepared or presented by the persons herein designated.  However, he shall not be considered to be acting in good faith if he has knowledge concerning the matter in question that would cause such reliance to be unwarranted.  A director shall not be liable to the corporation or its shareholders for any action he takes or omits to take as a director if, in connection with such action or omission, he performs his duties in compliance with this Section 14.
 
 
 
 
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The designated persons on whom a director is entitled to rely are (i) one or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented, (ii) legal counsel, public accountant, or other person as to matters which the director reasonably believes to be within such person’s professional or expert competence, or (iii) a committee of the board of directors on which the director does not serve if the director reasonably believes the committee merits confidence.


ARTICLE IV
Officers and Agents

Section 1.  General.  The officers of the corporation shall be a president, a secretary and a treasurer, and may also include one or more vice presidents, each of which officer shall be appointed by the board of directors and shall be a natural person eighteen years of age or older.  One person may hold more than one office.  The board of directors or an officer or officers so authorized by the board may appoint such other officers, assistant officers, committees and agents, including a chairman of the board, assistant secretaries and assistant treasurers, as they may consider necessary.  Except as expressly prescribed by these bylaws, the board of directors or the officer or officers authorized by the board shall from time to time determine the procedure for the appointment of officers, their authority and duties and their compensation, provided that the board of directors may change the authority, duties and compensation of any officer who is not appointed by the board.

Section 2.  Appointment and Term of Office.  The officers of the corporation to be appointed by the board of directors shall be appointed at each annual meeting of the board held after each annual meeting of the shareholders.  If the appointment of officers is not made at such meeting or if an officer or officers are to be appointed by another officer or officers of the corporation, such appointments shall be made as determined by the board of directors or the appointing person or persons.  Each officer shall hold office until the first of the following occurs:  his successor shall have been duly appointed and qualified, his death, his resignation, or his removal in the manner provided in Section 3.
 
Section 3.  Resignation and Removal.  An officer may resign at any time by giving written notice of resignation to the president, secretary or other person who appoints such officer.  The resignation is effective when the notice is received by the corporation unless the notice specifies a later effective date.

Any officer or agent may be removed at any time with or without cause by the board of directors or an officer or officers authorized by the board.  Such removal does not affect the contract rights, if any, of the corporation or of the person so removed.  The appointment of an officer or agent shall not in itself create contract rights.

Section 4.  Vacancies.  A vacancy in any office, however occurring, may be filled by the board of directors, or by the officer or officers authorized by the board, for the unexpired portion of the officer’s term.  If an officer resigns and his resignation is made effective at a later date, the board of directors, or officer or officers authorized by the board, may permit the officer to remain in office until the effective date and may fill the pending vacancy before the effective date if the board of directors or officer or officers authorized by the board provide that the successor shall not take office until the effective date.  In the alternative, the board of directors, or officer or officers authorized by the board of directors, may remove the officer at any time before the effective date and may fill the resulting vacancy.
 
 
 
 
 
12

 
 

 
Section 5.  President.  The president shall preside at all meetings of shareholders and all meetings of the board of directors unless the board of directors has appointed a chairman, vice chairman, or other officer of the board and has authorized such person to preside at meetings of the board of directors.  Subject to the direction and supervision of the board of directors, the president shall be the chief executive officer of the corporation, and shall have general and active control of its affairs and business and general supervision of its officers, agents and employees.  Unless otherwise directed by the board of directors, the president shall attend in person or by substitute appointed by him, or shall execute on behalf of the corporation written instruments appointing a proxy or proxies to represent the corporation, at all meetings of the stockholders of any other corporation in which the corporation holds any stock.  On behalf of the corporation, the president may in person or by substitute or by proxy execute written waivers of notice and consents with respect to any such meetings.  At all such meetings and otherwise, the president, in person or by substitute or proxy, may vote the stock held by the corporation, execute written consents and other instruments with respect to such stock, and exercise any and all rights and powers incident to the ownership of said stock, subject to the instructions, if any, of the board of directors.  The president shall have custody of the treasurer’s bond, if any.  The president shall have such additional authority and duties as are appropriate and customary for the office of president and chief executive officer, except as the same may be expanded or limited by the board of directors from time to time.

Section 6.  Vice Presidents.  The vice presidents shall assist the president and shall perform such duties as may be assigned to them by the president or by the board of directors.  In the absence of the president, the vice president, if any (or, if more than one, the vice presidents in the order designated by the board of directors, or if the board makes no such designation, then the vice president designated by the president, or if neither the board nor the president makes any such designation, the senior vice president as determined by first election to that office), shall have the powers and perform the duties of the president.

Section 7.  Secretary.  The secretary shall (i) prepare and maintain as permanent records the minutes of the proceedings of the shareholders and the board of directors, a record of all actions taken by the shareholders or board of directors without a meeting, 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, and a record of all waivers of notice of meetings of shareholders and of the board of directors or any committee thereof, (ii) see that all notices are duly given in accordance with the provisions of these bylaws and as required by law, (iii) serve as custodian of the corporate records and of the seal of the corporation and affix the seal to all documents when authorized by the board of directors, (iv) keep at the corporation’s registered office or principal place of business a record containing the names and addresses of all shareholders in a form that permits preparation of a list of shareholders arranged by voting group and by class or series of shares within each voting group, that is alphabetical within each class or series and that shows the address of, and the number of shares of each class or series held by, each shareholder, unless such a record shall be kept at the office of the corporation’s transfer agent or registrar, (v) maintain at the corporation’s principal office the originals or copies of the corporation’s articles of incorporation, bylaws, minutes of all shareholders’ meetings and records of all action taken by shareholders without a meeting for the past three years, all written communications within the past three years to shareholders as a group or to the holders of any class or series of shares as a group, a list of the names and business addresses of the current directors and officers, a copy of the corporation’s most recent corporate report filed with the Secretary of State, and financial statements showing in reasonable detail the corporation’s assets and liabilities and results of operations for the last three years, (vi) have general charge of the stock transfer books of the corporation, unless the corporation has a transfer agent, (vii) authenticate records of the corporation, and (viii) in general, 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.  Assistant secretaries, if any, shall have the same duties and powers, subject to supervision by the secretary.  The directors and/or shareholders may however respectively designate a person other than the secretary or assistant secretary to keep the minutes of their respective meetings.
 
 
 
 
 
13

 
 

 
Any books, records, or minutes of the corporation may be in written form or in any form capable of being converted into written form within a reasonable time.

Section 8.  Treasurer.  The treasurer shall be the principal financial officer of the corporation, shall have the care and custody of all funds, securities, evidences of indebtedness and other personal property of the corporation and shall deposit the same in accordance with the instructions of the board of directors.  Subject to the limits imposed by the board of directors, he shall receive and give receipts and acquittances for money paid in on account of the corporation, and shall pay out of the corporation’s funds on hand all bills, payrolls and other just debts of the corporation of whatever nature upon maturity.  He shall perform all other duties incident to the office of the treasurer and, upon request of the board, shall make such reports to it as may be required at any time.  He shall, if required by the board, give the corporation a bond in such sums and with such sureties as shall be satisfactory to the board, conditioned upon the faithful performance of his duties and for the restoration to the corporation of all books, papers, vouchers, money and other property of whatever kind in his possession or under his control belonging to the corporation.  He shall have such other powers and perform such other duties as may from time to time be prescribed by the board of directors or the president.  The assistant treasurers, if any, shall have the same powers and duties, subject to the supervision of the treasurer.
 
The treasurer shall also be the principal accounting officer of the corporation.  He shall prescribe and maintain the methods and systems of accounting to be followed, keep complete books and records of account as required by the Nevada General Corporation Law, prepare and file all local, state and federal tax returns, prescribe and maintain an adequate system of internal audit and prepare and furnish to the president and the board of directors statements of account showing the financial position of the corporation and the results of its operations.
 
 
 
 
 
 
14

 
 

 
ARTICLE V
Stock

Section 1.  Certificates.  The board of directors shall be authorized to issue any of its classes of shares with or without certificates.  The fact that the shares are not represented by certificates shall have no effect on the rights and obligations of shareholders.  If the shares are-represented by certificates, such shares shall be represented by consecutively numbered certificates signed, either manually or by facsimile, in the name of the corporation by the president.  In case any officer who has signed or whose facsimile signature has been placed upon such certificate shall have ceased to be such officer before such certificate is issued, such certificate may nonetheless be issued by the corporation with the same effect as if he were such officer at the date of its issue.  All certificates shall be consecutively numbered, and the names of the owners, the number of shares, and the date of issue shall be entered on the books of the corporation.  Each certificate representing shares shall state upon its face:
 
(i)
That the corporation is organized under the laws of Nevada;
 
(ii)
The name of the person to whom issued;
 
(iii)
The number and class of the shares and the designation of the series, if any, that the certificate represents;
 
(iv)
The par value, if any, of each share represented by the certificate;
 
(v)
Any restrictions imposed by the corporation upon the transfer of the shares represented by the certificate.

If shares are not represented by certificates, within a reasonable time following the issue or transfer of such shares, the corporation shall send the shareholder a complete written statement of all of the information required to be provided to holders of uncertificated shares by the Nevada General Corporation Law.

Section 2.  Consideration for Shares.  Certificated or uncertificated shares shall not be issued until the shares represented thereby are fully paid.  The board of directors may authorize the issuance of shares for consideration consisting of any tangible or intangible property or benefit to the corporation, including cash, promissory notes, services performed or other securities of the corporation.  Future services shall not constitute payment or partial payment for shares of the corporation.  The promissory note of a subscriber or an affiliate of a subscriber shall not constitute payment or partial payment for shares of the corporation unless the note is negotiable and is secured by collateral, other than the shares being purchased, having a fair market value at least equal to the principal amount of the note.  For purposes of this Section 2, “promissory note” means a negotiable instrument on which there is an obligation to pay independent of collateral and does not include a non-recourse note.
 
 
 
15

 
 

 
Section 3.  Lost Certificates.  In case of the alleged loss, destruction or mutilation of a certificate of stock, the board of directors may direct the issuance of a new certificate in lieu thereof upon such terms and conditions in conformity with law as the board may prescribe.  The board of directors may in its discretion require an affidavit of lost certificate and/or a bond in such form and amount and with such surety as it may determine before issuing a new certificate.

Section 4.  Transfer of Shares.  Upon surrender to the corporation or to a transfer agent of the corporation of a certificate of stock duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer, and receipt of such documentary stamps as may be required by law and evidence of compliance with all applicable securities laws and other restrictions, the corporation shall issue a new certificate to the person entitled thereto, and cancel the old certificate.  Every such transfer of stock shall be entered on the stock books of the corporation which shall be kept at its principal office or by the person and at the place designated by the board of directors.

Except as otherwise expressly provided in Article II, Sections 7 and 11, and except for the assertion of dissenters’ rights to the extent provided in Article 113 of the Nevada General Corporation Law, the corporation shall be entitled to treat the registered holder of any shares of the corporation as the owner thereof for all purposes, and the corporation shall not be bound to recognize any equitable or other claim to, or interest in, such shares or rights deriving from such shares on the part of any person other than the registered holder, including without limitation any purchaser, assignee or transferee of such shares or rights deriving from such shares, unless and until such other person becomes the registered holder of such shares, whether or not the corporation shall have either actual or constructive notice of the claimed interest of such other person.

Section 5.  Transfer Agent, Registrars and Paying Agents.  The board may at its discretion appoint one or more transfer agents, registrars and agents for making payment upon any class of stock, bond, debenture or other security of the corporation.  Such agents and registrars may be located either within or outside Nevada.  They shall have such rights and duties and shall be entitled to such compensation as may be agreed.


ARTICLE VI
Indemnification of Certain Persons

Section 1.  Indemnification.  For purposes of Article VI, a “Proper Person” means any person (including the estate or personal representative of a director) who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, and whether formal or informal, by reason of the fact that he is or was a director, officer, employee, fiduciary or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of any foreign or domestic profit or nonprofit corporation or of any partnership, joint venture, trust, profit or nonprofit unincorporated association, limited liability company, or other enterprise or employee benefit plan.  The corporation shall indemnify any Proper Person against reasonably incurred expenses (including attorneys’ fees), judgments, penalties, fines (including any excise tax assessed with respect to an employee benefit plan) and amounts paid in settlement reasonably incurred by him in connection with such action, suit or proceeding if it is determined by the groups set forth in Section 4 of this Article that he conducted himself in good faith and that he reasonably believed (i) in the case of conduct in his official capacity with the corporation, that his conduct was in the corporation’s best interests, or (ii) in all other cases (except criminal cases), that his conduct was at least not opposed to the corporation’s best interests, or (iii) in the case of any criminal proceeding, that he had no reasonable cause to believe his conduct was unlawful.  Official capacity means, when used with respect to a director, the office of director and, when used with respect to any other Proper Person, the office in a corporation held by the officer or the employment, fiduciary or agency relationship undertaken by the employee, fiduciary, or agent on behalf of the corporation.  Official capacity does not include service for any other domestic or foreign corporation or other person or employee benefit plan.
 
 
 
 
 
16

 
 

 
A director’s conduct with respect to an employee benefit plan for a purpose the director reasonably believed to be in the interests of the participants in or beneficiaries of the plan is conduct that satisfies the requirement in (ii) of this Section 1.  A director’s conduct with respect to an employee benefit plan for a purpose that the director did not reasonably believe to be in the interests of the participants in or beneficiaries of the plan shall be deemed not to satisfy the requirement of this section that he conduct himself in good faith.

No indemnification shall be made under this Article VI to a Proper Person with respect to any claim, issue or matter in connection with a proceeding by or in the right of a corporation in which the Proper Person was adjudged liable to the corporation or in connection with any proceeding charging that the Proper Person derived an improper personal benefit, whether or not involving action in an official capacity, in which he was adjudged liable on the basis that he derived an improper personal benefit.  Further, indemnification under this section in connection with a proceeding brought by or in the right of the corporation shall be limited to reasonable expenses, including attorneys’ fees, incurred in connection with the proceeding.

Section 2.  Right to Indemnification.   The corporation shall indemnify any Proper Person who was wholly successful, on the merits or otherwise, in defense of any action, suit, or proceeding as to which he was entitled to indemnification under Section 1 of this Article VI against expenses (including attorneys’ fees) reasonably incurred by him in connection with the proceeding without the necessity of any action by the corporation other than the determination in good faith that the defense has been wholly successful.

Section 3.  Effect of Termination of Action.  The termination of any action, suit or proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent shall not of itself create a presumption that the person seeking indemnification did not meet the standards of conduct described in Section 1 of this Article VI. Entry of a judgment by consent as part of a settlement shall not be deemed an adjudication of liability, as described in Section 2 of this Article VI.

Section 4.  Groups Authorized to Make Indemnification Determination.  Except where there is a right to indemnification as set forth in Sections 1 or 2 of this Article or where indemnification is ordered by a court in Section 5, any indemnification shall be made by the corporation only as determined in the specific case by a proper group that indemnification of the Proper Person is permissible under the circumstances because he has met the applicable standards of conduct set forth in Section 1 of this Article.  This determination shall be made by the board of directors by a majority vote of those present at a meeting at which a quorum is present, which quorum shall consist of directors not parties to the proceeding (“Quorum”).  If a Quorum cannot be obtained, the determination shall be made by a majority vote of a committee of the board of directors designated by the board, which committee shall consist of two or more directors not parties to the proceeding, except that directors who are parties to the proceeding may participate in the designation of directors for the committee.  If a Quorum of the board of directors cannot be obtained and the committee cannot be established, or even if a Quorum is obtained or the committee is designated and a majority of the directors constituting such Quorum or committee so directs, the determination shall be made by (i) independent legal counsel selected by a vote of the board of directors or the committee in the manner specified in this Section 4 or, if a Quorum of the full board of directors cannot be obtained and a committee cannot be established, by independent legal counsel selected by a majority vote of the full board (including directors who are parties to the action) or (ii) a vote of the shareholders.
 
 
 
 
 
17

 
 
Authorization of indemnification and advance of expenses shall be made in the same manner as the determination that indemnification or advance of expenses is permissible except that, if the determination that indemnification or advance of expenses is permissible is made by independent legal counsel, authorization of indemnification and advance of expenses shall be made by the body that selected such counsel.

Section 5.  Court-Ordered Indemnification. Any Proper Person may apply for indemni-fication to the court conducting the proceeding or to another court of competent jurisdiction for mandatory indemnification under Section 2 of this Article, including indemnification for reasonable expenses incurred to obtain court-ordered indemnification.  If a court determines that the Proper Person is entitled to indemnification under Section 2 of this Article, the court shall order indemnification, including the Proper Person’s reasonable expenses incurred to obtain court-ordered indemnification.  If the court determines that such Proper Person is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not he met the standards of conduct set forth in Section 1 of this Article or was adjudged liable in the proceeding, the court may order such indemnification as the court deems proper except that if the Proper Person has been adjudged liable, indemnification shall be limited to reasonable expenses incurred in connection with the proceeding and reasonable expenses incurred to obtain court-ordered indemnification.

Section 6.  Advance of Expenses.   Reasonable expenses (including attorneys’ fees) incurred in defending an action, suit or proceeding as described in Section 1 may be paid by the corporation to any Proper Person in advance of the final disposition of such action, suit or proceeding upon receipt of (i) a written affirmation of such Proper Person’s good faith belief that he has met the standards of conduct prescribed by Section 1 of this Article VI, (ii) a written undertaking, executed personally or on the Proper Person’s behalf, to repay such advances if it is ultimately determined that he did not meet the prescribed standards of conduct (the undertaking shall be an unlimited general obligation of the Proper Person but need not be secured and may be accepted without reference to financial ability to make repayment), and (iii) a determination is made by the proper group (as described in Section 4 of this Article VI) that the facts as then known to the group would not preclude indemnification.  Determination and authorization of payments shall be made in the same manner specified in Section 4 of this Article VI.

 
 
 
 
 
 
 
18

 
 
 
Section 7.  Additional Indemnification to Certain Persons Other Than Directors.  In addition to the indemnification provided to officers, employees, fiduciaries or agents because of their status as Proper Persons under this Article, the corporation may also indemnify and advance expenses to them if they are not directors of the corporation to a greater extent than is provided in these bylaws, if not inconsistent with public policy, and if provided for by general or specific action of its board of directors or shareholders or by contract.

Section 8.  Witness Expenses.   The sections of this Article VI do not limit the corporation’s authority to pay or reimburse expenses incurred by a director in connection with an appearance as a witness in a proceeding at a time when he has not been made or named as a defendant or respondent in the proceeding.

Section 9.  Report to Shareholders.  Any indemnification of or advance of expenses to a director in accordance with this Article VI, if arising out of a proceeding by or on behalf of the corporation, shall be reported in writing to the shareholders with or before the notice of the next shareholders’ meeting.  If the next shareholder action is taken without a meeting at the instigation of the board of directors, such notice shall be given to the shareholders at or before the time the first shareholder signs a writing consenting to such action.


ARTICLE VII
Provisions of Insurance

Section 1.  Provision of Insurance.  By action of the board of directors, notwithstanding any interest of the directors in the action, the corporation may purchase and maintain insurance, in such scope and amounts as the board of directors deems appropriate, on behalf of any person who is or was a director, officer, employee, fiduciary or agent of the corporation, or who, while a director, officer, employee, fiduciary or agent of the corporation, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of any other foreign or domestic profit or nonprofit corporation or of any partnership, joint venture, trust, profit or nonprofit unincorporated association, limited liability company, other enterprise or employee benefit plan, against any liability asserted against, or incurred by, him in that capacity or arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability under the provisions of Article VI or applicable law.  Any such insurance may be procured from
any insurance company designated by the board of directors of the corporation, whether such insurance company is formed under the laws of Nevada or any other jurisdiction of the United States or elsewhere, including any insurance company in which the corporation has an equity interest or any other interest, through stock ownership or otherwise.

 
 
 
 
 
 
19

 
 
ARTICLE VIII
Miscellaneous

Section 1.  Seal.  The board of directors may adopt a corporate seal, which shall contain the name of the corporation and the words, “Seal, Nevada.”

Section 2.  Fiscal Year.  The fiscal year of the corporation shall be as established by the board of directors.

Section 3.  Amendments.  The board of directors shall have power, to the maximum extent permitted by the Nevada General Corporation Law, to make, amend and repeal the bylaws of the corporation at any regular or special meeting of the board unless the shareholders, in making, amending or repealing a particular bylaw, expressly provide that the directors may not amend or repeal such bylaw.  The shareholders also shall have the power to make, amend or repeal the bylaws of the corporation at any annual meeting or at any special meeting called for that purpose.

Section 4.  Receipt of Notices by the Corporation.  Notices, shareholder writings consenting to action, and other documents or writings shall be deemed to have been received by the corporation when they are actually received:  (1) at the registered office of the corporation in Nevada; (2) at the principal office of the corporation (as that office is designated in the most recent document filed by the corporation with the secretary of state for Nevada designating a principal office) addressed to the attention of the secretary of the corporation; (3) by the secretary of the corporation wherever the secretary may be found; or (4) by any other person authorized from time to time by the board of directors or the president to receive such writings, wherever such person is found.

Section 5.  Gender.  The masculine gender is used in these bylaws as a matter of convenience only and shall be interpreted to include the feminine and neuter genders as the circumstances indicate.

Section 6.  Conflicts.  In the event of any irreconcilable conflict between these bylaws and either the corporation’s articles of incorporation or applicable law, the latter shall control.

Section 7.  Definitions.   Except as otherwise specifically provided in these bylaws, all terms used in these bylaws shall have the same definition as in the Nevada General Corporation Law.
 
 
20

EX-5.1 4 ex5-1.htm OPINION OF GARY A. AGRON ex5-1.htm

Exhibit 5.1
LAW OFFICE OF GARY A. AGRON
5445 DTC Parkway, Suite 520
Greenwood Village, Colorado 80111
Telephone: (303) 770-7254
Facsimile: (303) 770-7257
E-Mail: gaa@attglobal.net
 
August 12, 2008
 
Organic Alliance, Inc.
1250 NE Loop 410
San Antonio, TX 78209
 
Re:   Registration Statement on Form S-1
 
Ladies and Gentlemen:
 
We are counsel for Organic Alliance, Inc., a Nevada corporation (the “Company”), in connection with the proposed public offering under the Securities Act of 1933, as amended, of up to an aggregate of 10,325,468 shares of its $0.001 par value common stock (“Common Stock”), and 6,000,168 shares of the Company’s Common Stock underlying common stock purchase warrants to be offered by certain selling stockholders of the Company through a Registration Statement on Form S-1 (“Registration Statement”) as to which this opinion is a part, to be filed with the Securities and Exchange Commission (the “Commission”).
 
In connection with rendering our opinion as set forth below, we have reviewed and examined originals or copies identified to our satisfaction of the following:
 
(1)   Articles of Incorporation and amendments thereto, of the Company as filed with the Secretary of State of the state of Nevada;
 
(2)   Corporate minutes containing the written deliberations and resolutions of the Board of Directors and shareholders of the Company;
 
(3)   The Registration Statement and the Preliminary Prospectus contained within the Registration Statement;
 
(4)   The other exhibits of the Registration Statement; and
 
(5)   All relevant statutory provisions under Nevada law, all applicable Nevada Constitutional provisions and all reported judicial decisions interpreting such statutory and Constitutional provisions.
 
We have examined such other documents and records, instruments and certificates of public officials, officers and representatives of the Company, and have made such other investigations as we have deemed necessary or appropriate under the circumstances.
 
Based upon the foregoing and in reliance thereon, it is our opinion that the Common Stock offered under the Registration Statement and the Common Stock to be issued upon exercise of common stock purchase warrants, are fully paid, non-assessable and lawfully issued under Nevada law.
 
We hereby consent to the use of this opinion as an exhibit to the Registration Statement and to the use of our name under the caption “Legal Matters” in the Prospectus constituting a part thereof.
 
Very truly yours,
 
/s/ Gary A. Agron
Gary A. Agron
 
 
 

EX-10.1 5 ex10-1.htm EXCHANGE AGREEMENT WITH ORGANIC ALLIANCE, INC., A TEXAS CORPORATION ex10-1.htm
Exhibit 10.1
 
 
 
 
 
 
 
 
 
 
 
 
AGREEMENT

CONCERNING THE EXCHANGE OF SECURITIES

BY AND AMONG

NB DESIGN AND LICENSING, INC.

AND

ORGANIC ALLIANCE, INC. AND
THE SECURITY HOLDERS OF ORGANIC ALLIANCE, INC.
 
 
 
 
 

 
 
   
Page
ARTICLE I – Exchange of Securities
 
1.1
Issuance of Securities
1
1.2
Exemption from Registration
1
1.3
Private Placement
1
1.4
NB Common Stock Outstanding
2
1.5
Derivative Securities
2
ARTICLE II – Representations and Warranties of Organic
2
2.1
Organization
2
2.2
Capital
3
2.3
Subsidiaries
3
2.4
Directors and Officers
3
2.5
Financial Statements
3
2.6
Absence of Changes
3
2.7
Absence of Undisclosed Liabilities
4
2.8
Tax Returns
4
2.9
Investigation of Financial Condition
4
2.10
Intellectual Property Rights
4
2.11
Compliance with Laws
4
2.12
Litigation
4
2.13
Authority
4
2.14
Ability to Carry Out Obligations
5
2.15
Full Disclosure
5
2.16
Assets
5
2.17
Material Contracts
5
2.18
Indemnification
5
2.19
Criminal or Civil Acts
5
2.20
Restricted Securities
5
ARTICLE III – Representations and Warranties of NB
5
3.1
Organization
6
3.2
Capital
6
3.3
Subsidiaries
6
3.4
Directors and Officers
6
3.5
Financial Statements
6
3.6
Absence of Changes
6
3.7
Absence of Undisclosed Liabilities
6
3.8
Tax Returns
7
3.9
Investigation of Financial Condition
7
3.10
Intellectual Property Rights
7
3.11
Compliance with Laws
7
 
 

 
 
     
3.12
Litigation
7
3.13
Authority
7
3.14
Ability to Carry Out Obligations
7
3.15
Full Disclosure
7
3.16
Assets
8
3.17
Material Contracts
8
3.18
Indemnification
8
3.19
Criminal or Civil Acts
8
3.20
Pink Sheets Trading Status
8
ARTICLE IV – Covenants Prior to the Closing Date
8
4.1
Investigative Rights
8
4.2
Conduct of Business
8
4.3
Confidential Information
9
4.4
Notice of Non-Compliance
9
ARTICLE V – Conditions Precedent to NB’s Performance
9
5.1
Conditions
9
5.2
Accuracy of Representations
9
5.3
Performance
9
5.4
Absence of Litigation
9
5.5
Officer’s Certificate
9
5.6
Other Conditions
10
ARTICLE VI – Conditions Precedent to Organic’s Performance
10
6.1
Conditions
10
6.2
Accuracy of Representations
10
6.3
Performance
10
6.4
Absence of Litigation
10
6.5
Officer’s Certificate
10
6.6
Payment of Liabilities
10
6.7
Directors of NB
10
6.8
Officers of NB
11
ARTICLE VII – Closing
11
7.1
Closing
11
ARTICLE VIII – Covenants Subsequent to the Closing Date
12
8.1
Registration and Listing
12
 
 

 
 
     
ARTICLE IX – Miscellaneous
 
9.1
Captions and Headings
12
9.2
No Oral Change
12
9.3
Non-Waiver
12
9.4
Time of Essence
12
9.5
Entire Agreement
12
9.6
Choice of Law
12
9.7
Counterparts
13
9.8
Notices
13
9.9
Binding Effect
13
9.10
Mutual Cooperation
13
9.11
Finders
13
9.12
Announcements
13
9.13
Expenses
13
9.14
Survival of Representations and Warranties
13
9.15
Exhibits
13
9.16
Legal Counsel
14
9.17
Termination, Amendment and Waiver
14
 
 
 
 
       
EXHIBITS
   
       
 
Allocation of Securities
Exhibit
 1.1
 
Subscription Agreement
Exhibit
 1.2
 
Financial Statements of Organic
Exhibit
 2.5
 
Financial Statements of NB
Exhibit
 3.5
 
 
 
 

 
 
 
AGREEMENT

THIS AGREEMENT (“Agreement”) is made this _____ day of April, 2008, by and between NB Design and Licensing, Inc., a Nevada corporation (“NB”), Organic Alliance, Inc., a Texas corporation (“Organic”), and the security holders of Organic (the “Organic Security Holders”) who are listed on Exhibit 1.1 hereto and have executed Subscription Agreements in the form attached in Exhibit 1.2, hereto.

WHEREAS, NB desires to acquire all of the issued and outstanding common stock of Organic from the Organic Security Holders in exchange for newly issued unregistered shares of common stock of NB;

WHEREAS, Organic desires to assist NB in acquiring all of the issued and outstanding common stock of Organic pursuant to the terms of this Agreement; and

WHEREAS, all of the Organic Security Holders, by execution of Exhibit 1.2 hereto, agree to exchange all 10,916,917 common shares they hold in Organic for 9,299,972 common shares of NB.

NOW, THEREFORE, in consideration of the mutual promises, covenants and representations contained herein, the parties hereto agree as follows:

ARTICLE I

Exchange of Securities

1.1           Issuance of Securities. Subject to the terms and conditions of this Agreement, NB agrees to issue and exchange 9,299,972 fully paid and non-assessable unregistered shares of NB’s $.0001 par value common stock (the “NB Shares”) for all 10,916,917 issued and outstanding shares of the no par value common stock of Organic (the “Organic Shares”) held by the Organic Security Holders.  All NB Shares will be issued directly to the Organic Security Holders on the Closing Date (as hereinafter defined), pursuant to the schedule set forth in Exhibit 1.1.

1.2           Exemption from Registration. The parties hereto intend that all NB common stock to be issued to the Organic Security Holders shall be exempt from the registration requirements of the Securities Act of 1933, as amended (the “Act”), pursuant to Section 4(2) and/or Regulation D of the Act and rules and regulations promulgated thereunder.  In furtherance thereof, each of the Organic Security Holders will execute and deliver to NB on the closing date of this Agreement (the “Closing Date”) a copy of the Subscription Agreement set forth in Exhibit 1.2 hereto.

1.3           Private Placement.  Prior to the Closing Date and as a condition to closing, Organic shall raise a minimum of $200,000 of equity capital (the “Private Placement”).  The 9,299,972 shares of NB issuable to the Organic Security Holders shall include the shares Organic issued under the Private Placement.
 
 
 
 
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1.4           NB Common Stock Outstanding. NB has 200,028 shares currently outstanding. On the Closing Date, Organic shall purchase from certain NB stockholders 500,000 shares of NB common stock for $200,000 or $.40 per share, which shares shall be cancelled and retired by Organic. Accordingly, following the closing of the Agreement, NB shall have a total of 10,000,000 shares outstanding, comprised of 9,299,972 shares (93% of the total shares outstanding) held by the Organic Security Holders and 700,028 shares (7% of the total shares outstanding) retained by the original NB stockholders.

1.5           Derivative Securities.  NB has issued six classes of common stock purchase warrants (“Warrants”) with 1,000,000 warrants outstanding in each class. The Warrants expire on December 31, 2008, with 2,000,000 Warrants exercisable at $2.00 per share, 2,000,000 Warrants exercisable at $4.00 per share and 2,000,000 Warrants exercisable at $6.00 per share.  In connection therewith, NB agrees to reduce the exercise price of all such Warrants to $1.00 per share and to extend the exercise period of the Warrants to December 31, 2011.  In exchange for the exercise price reduction and extension of the exercise period, it shall be a condition for closing that the holders of at least 80% of the Warrants (the “NB Principals”) agree that the Warrants they hold shall be subject to a call provision by NB on 10 days notice to the holders if (i) the bid price of NB’s common stock is quoted at $1.25 per share or higher and the average share volume exceeds 300,000 shares for at least one day, and (ii) the shares underlying the Warrants are subject to a current registration statement on file with the Securities and Exchange Commission. Both the share price and volume must be met on the same day for the call provision to be effective.

The NB Principals agree by execution of this Agreement that they may sell no more than an aggregate of 300,000 shares until the later of (a) such time as 50% of the Warrants have been exercised, or (b) six months from the effective date of the registration statement covering the 700,028 shares and the shares underlying the Warrants held by the NB Principals as described in Section 8.1(c).

NB shall also have the option during the life of the Warrants to exchange all or any part of the Warrants held by the NB Principals for 500,000 shares of NB common stock.  If less than all of the Warrants are called by NB to be exchanged then the number of shares issuable to the NB Principals shall be apportioned accordingly.

ARTICLE II

Representations and Warranties of Organic

Organic hereby represents and warrants to NB that:

2.1           Organization. Organic is a corporation duly organized, validly existing and in good standing under the laws of Texas, has all necessary corporate powers to own its properties and to carry on its business as now owned and operated by it, and is duly qualified to do business and is in good standing in each of the states where its business requires qualification.

 
 
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2.2           Capital. The authorized capital stock of Organic consists of 60,000,000 authorized shares of no par value common stock, of which 10,916,917 shares of common stock are outstanding, and 10,000,000 authorized shares of $    no par value preferred stock, none of which are outstanding.  All of the outstanding common stock of Organic is duly and validly issued, fully paid and non-assessable. There are no outstanding subscriptions, options, rights, warrants, debentures, instruments, convertible securities or other agreements or commitments obligating Organic to issue any additional shares of its capital stock of any class.

2.3           Subsidiaries. Organic does not have any subsidiaries or own any interest in any other enterprise.

2.4           Directors and Officers. The names and titles of the directors and officers of Organic as of the date of this Agreement are as follows:

Name
 
Position
Thomas Morrison
 
Chief Executive Officer,
Chief Financial Officer and Director
James Haworth
 
Director
Alicia Kriese
 
Director

2.5           Financial Statements. Exhibit 2.5 hereto consists of the unaudited financial statements of Organic for the period from inception on February 19, 2008 through March 31, 2008 (the “Organic Financial Statements”). The Organic Financial Statements have been prepared in accordance with generally accepted accounting principles and practices consistently followed by Organic throughout the period indicated, and fairly present the financial position of Organic as of the date of the balance sheet included in the Organic Financial Statements and the results of operations for the period indicated.  There are no material omissions or non-disclosures in the Organic Financial Statements.

2.6           Absence of Changes. Since March 31, 2008, there has not been any material change in the financial condition or operations of Organic, except as contemplated by this Agreement.  As used throughout this Agreement, “material” means:  Any change or effect (or development that, insofar as can be reasonably foreseen, is likely to result in any change or effect) that causes substantial increase or diminution in the business, properties, assets, condition (financial or otherwise) or results of operations of a party.  Taken as a whole, material change shall not include changes in national or international economic conditions or industry conditions generally; changes or possible changes in statutes and regulations applicable to a party; or the loss of employees, customers or suppliers by a party as a direct or indirect consequence of any announcement relating to this transaction.
 
2.7           Absence of Undisclosed Liabilities. As of March 31, 2008, Organic did not have any material debt, liability or obligation of any nature, whether accrued, absolute, contingent or otherwise, and whether due or to become due, that is not reflected in the Organic Financial Statements.
 
 
 
 
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2.8           Tax Returns. Organic has filed all federal, state and local tax returns required by law and has paid all taxes, assessments and penalties due and payable. The provisions for taxes, if any, reflected in Exhibit 2.5 are adequate for the periods indicated.  There are no present disputes as to taxes of any nature payable by Organic.

2.9           Investigation of Financial Condition. Without in any manner reducing or otherwise mitigating the representations contained herein, NB, its legal counsel and accountants shall have the opportunity to meet with Organic’s accountants and attorneys to discuss the financial condition of Organic during reasonable business hours and in a manner that does not interfere with the normal operation of Organic’s business.  Organic shall make available to NB all books and records of Organic, provided, however, that Organic will be under no obligation to provide any information subject to confidentiality provisions or waive any privilege associated with any such information.

2.10           Intellectual Property Rights. Organic owns or has the right to use all trademarks, service marks, trade names, copyrights and patents material to its business.

2.11           Compliance with Laws. To the best of Organic’s knowledge, Organic has complied with, and is not in violation of, applicable federal, state or local statutes, laws and regulations, including federal and state securities laws, except where such non-compliance would not have a material adverse impact upon its business or properties.

2.12           Litigation. Organic is not a defendant in any suit, action, arbitration or legal, administrative or other proceeding, or governmental investigation which is pending or, to the best knowledge of Organic, threatened against or affecting Organic or its business, assets or financial condition.  Organic is not in default with respect to any order, writ, injunction or decree of any federal, state, local or foreign court, department, agency or instrumentality applicable to it.  Organic is not engaged in any material litigation to recover monies due to it.

2.13           Authority. The Board of Directors of Organic has authorized the execution of this Agreement and the consummation of the transactions contemplated herein, and Organic has full power and authority to execute, deliver and perform this Agreement, and this Agreement is a legal, valid and binding obligation of Organic and is enforceable in accordance with its terms and conditions.  By execution of Exhibit 1.2, all of the Organic Security Holders have agreed to and have approved the terms of this Agreement.
 
2.14           Ability to Carry Out Obligations. To the best of Organic’s knowledge, the execution and delivery of this Agreement by Organic and the performance by Organic of its obligations hereunder in the time and manner contemplated will not cause, constitute or conflict with or result in (a) any breach or violation of any of the provisions of or constitute a default under any license, indenture, mortgage, instrument, article of incorporation, bylaw, or other agreement or instrument to which Organic is a party, or by which it may be bound, nor will any consents or authorizations of any party other than those hereto be required, (b) an event that would permit any party to any agreement or instrument to terminate it or to accelerate the maturity of any indebtedness or other obligation of Organic, or (c) an event that would result in the creation or imposition of any lien, charge or encumbrance on any asset of Organic.
 
 
 
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2.15           Full Disclosure. None of the representations and warranties made by Organic herein or in any exhibit, certificate or memorandum furnished or to be furnished by Organic, or on its behalf, contains or will contain any untrue statement of material fact or omit any material fact the omission of which would be misleading.

2.16           Assets. Organic’s assets are fully included in Exhibit 2.5 and are not subject to any claims or encumbrances except as indicated in Exhibit 2.5.

2.17           Material Contracts. Organic does not have any material contracts.

           2.18           Indemnification. Organic agrees to indemnify, defend and hold NB and NB’s officers and directors harmless against and in respect of any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest, penalties and reasonable attorney fees asserted by third parties against NB which arise out of, or result from (i) any breach by Organic in performing any of its covenants or agreements under this Agreement or in any schedule, certificate, exhibit or other instrument furnished or to be furnished by Organic under this Agreement, (ii) a failure of any representation or warranty in this Article II or (iii) any untrue statement made by Organic in this Agreement.

2.19           Criminal or Civil Acts. For the period of five years prior to the execution of this Agreement, no executive officer, director or principal stockholder of Organic has been convicted of a felony crime, filed for personal bankruptcy, been the subject of a Commission or NASD judgment or decree, or is currently the subject to any investigation in connection with a felony crime or Commission or NASD proceeding.

2.20           Restricted Securities.  Organic and the Organic Security Holders, by execution of this Agreement and of Exhibit 1.2, acknowledge that all of the NB Shares issued by NB are restricted securities and none of such securities may be sold or publicly traded except in accordance with the provisions of the Act.

ARTICLE III

Representations and Warranties of NB

NB represents and warrants to Organic that:

3.1           Organization. NB is a corporation duly organized, validly existing and in good standing under the laws of Nevada, has all necessary corporate powers to carry on its business, and is duly qualified to do business and is in good standing in each of the states where its business requires qualification.

3.2           Capital. The authorized capital stock of NB currently consists of 60,000,000 shares of $.0001 par value common stock, of which 1,200,028 shares are currently outstanding, and 700,028 shares will be outstanding on the Closing Date.  NB also has authorized 10,000,000 shares of $.0001 par value preferred stock, none of which are outstanding.  All of NB’s outstanding securities are duly and validly issued, fully paid and non-assessable. There are no outstanding subscriptions, options, rights, warrants, debentures, instruments, convertible securities or other agreements or commitments obligating NB to issue any additional shares of its capital stock of any class except as described in Section 1.5 above.
 
 
 
 
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3.3           Subsidiaries. NB does not have any subsidiaries or own any interest in any other enterprise.

3.4           Directors and Officers. The names and titles of the directors and officers of NB are:  Robert S. Lazzeri, Chief Executive Officer and Director, and Derold L. Kelley, Secretary, Treasurer and Director.

3.5           Financial Statements. Exhibit 3.5 hereto consists of the audited financial statements of NB for the years ended December 31, 2006 and 2007 and the unaudited financial statements of NB for the three months ended March 31, 2008 (the “NB Financial Statements”).  The NB Financial Statements have been prepared in accordance with generally accepted accounting principles and practices consistently followed by NB throughout the periods indicated, and fairly present the financial position of NB as of the date of the balance sheets included in the NB Financial Statements and the results of operations for the periods indicated.  There are no material omissions or non-disclosures in the NB Financial Statements.

3.6           Absence of Changes. Since March 31, 2008, there has not been any material change in the financial condition or operations of NB, except as contemplated by this Agreement.

3.7           Absence of Undisclosed Liabilities. As of March 31, 2008, NB did not have any material debt, liability or obligation of any nature, whether accrued, absolute, contingent or otherwise, and whether due or to become due, that is not reflected in the NB Financial Statements.
3.8           Tax Returns. Within the times and in the manner prescribed by law, NB has filed all federal, state and local tax returns required by law and has paid all taxes, assessments and penalties due and payable.

3.9           Investigation of Financial Condition. Without in any manner reducing or otherwise mitigating the representations contained herein, Organic, its legal counsel and accountants shall have the opportunity to meet with NB’s accountants and attorneys to discuss the financial condition of NB.  NB shall make available to Organic all books and records of NB.

3.10          Intellectual Property Rights. NB does not have any patents, trademarks, service marks, trade names, copyrights or other intellectual property rights.

3.11          Compliance with Laws. NB has complied with, and is not in violation of, applicable federal, state or local statutes, laws or regulations including federal and state securities laws.

3.12          Litigation. NB is not a defendant in any suit, action, arbitration, or legal, administrative or other proceeding, or governmental investigation which is pending or, to the best knowledge of NB, threatened against or affecting NB or its business, assets or financial condition.  NB is not in default with respect to any order, writ, injunction or decree of any federal, state, local or foreign court, department, agency or instrumentality applicable to it.  NB is not engaged in any material litigation to recover monies due to it.
 
 
 
 
 
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3.13           Authority. The Board of Directors of NB has authorized the execution of this Agreement and the transactions contemplated herein, and NB has full power and authority to execute, deliver and perform this Agreement, and this Agreement is the legal, valid and binding obligation of NB, and is enforceable in accordance with its terms and conditions.

3.14           Ability to Carry Out Obligations. The execution and delivery of this Agreement by NB and the performance by NB of its obligations hereunder will not cause, constitute or conflict with or result in (a) any breach or violation of any of the provisions of or constitute a default under any license, indenture, mortgage, instrument, article of incorporation, bylaw or other agreement or instrument to which NB is a party, or by which it may be bound, nor will any consents or authorization of any party other than those hereto be required, (b) an event that would permit any party to any agreement or instrument to terminate it or to accelerate the maturity of any indebtedness or other obligation of NB, or (c) an event that would result in the creation or imposition of any lien, charge or encumbrance on any asset of NB.

3.15           Full Disclosure. None of the representations and warranties made by NB herein, or in any exhibit, certificate or memorandum furnished or to be furnished by NB or on its behalf, contains or will contain any untrue statement of material fact or omit any material fact the omission of which would be misleading.

3.16           Assets.  NB has no assets or liabilities.

3.17           Material Contracts.  NB has no material contracts.

3.18           Indemnification. NB agrees to indemnify, defend and hold Organic harmless against and in respect of any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest, penalties and reasonable attorney fees asserted by third parties against Organic, which arise out of, or result from (i) any breach by NB in performing any of its covenants or agreements in this Agreement or in any schedule, certificate, exhibit or other instrument furnished or to be furnished by NB under this Agreement,  (ii) a failure of any representation or warranty in this Article III, or (iii) any untrue statement made by NB in this Agreement.

3.19           Criminal or Civil Acts. For a period of five years prior to the execution of this Agreement, no executive officer, director or principal stockholder of NB has been convicted of a felony crime, filed for personal bankruptcy, been the subject of a Securities and Exchange Commission (“Commission”) or NASD judgment or decree, or is currently the subject to an investigation in connection with any felony crime or Commission or NASD proceeding.

3.20           Pink Sheets Trading Status.  NB shall be in compliance with all requirements for, and its common stock shall be quoted on, the Pink Sheets on the date immediately prior to the Closing Date, such that the common stock of NB may continue to be so quoted without interruption following the Closing Date.

 
 
 
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ARTICLE IV

Covenants Prior to the Closing Date

4.1           Investigative Rights. Prior to the Closing Date, each party shall provide to the other party, and such other party’s counsel, accountants, auditors and other authorized representatives, full access during normal business hours and upon reasonable advance written notice to all of each party’s properties, books, contracts, commitments and records for the purpose of examining the same.  Each party shall furnish the other party with all information concerning each party’s affairs as the other party may reasonably request.  If during the investigative period one party learns that a representation of the other party was not accurate, no such claim may be asserted by the party so learning that a representation of the other party was not accurate.

4.2           Conduct of Business. Prior to the Closing Date, each party shall conduct its business in the normal course and shall not sell, pledge or
assign any assets without the prior written approval of the other party, except in the normal course of business.  Neither party shall amend its Articles of Incorporation or Bylaws (except as may be described in this Agreement), declare dividends, redeem or sell stock or other securities.  Neither party shall enter into negotiations with any third party or complete any transaction with a third party involving the sale of any of its assets or the exchange of any of its common stock.

4.3           Confidential Information.  Each party will treat all non-public, confidential and trade secret information received from the other party as confidential, and such party shall not disclose or use such information in a manner contrary to the purposes of this Agreement.  Moreover, all such information shall be returned to the other party in the event this Agreement is terminated.

4.4           Notice of Non-Compliance.  Each party shall give prompt notice to the other party of any representation or warranty made by it in this Agreement becoming untrue or inaccurate in any respect or the failure by it to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or satisfied by it under this Agreement.

ARTICLE V

Conditions Precedent to NB’s Performance

5.1           Conditions. NB’s obligations hereunder shall be subject to the satisfaction at or before the Closing Date of all the conditions set forth in this Article V.  NB may waive any or all of these conditions in whole or in part without prior notice; provided, however, that no such waiver of a condition shall constitute a waiver by NB of any other condition of or any of NB’s other rights or remedies, at law or in equity, if Organic shall be in default of any of its representations, warranties or covenants under this Agreement.
 
 
 
 
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5.2           Accuracy of Representations. Except as otherwise permitted by this Agreement, all representations and warranties by Organic in this Agreement or in any written statement that shall be delivered to NB by Organic under this Agreement shall be true and accurate on and as of the Closing Date as though made at that time.

5.3           Performance. Organic shall have performed, satisfied and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by it on or before the Closing Date.

5.4           Absence of Litigation. No action, suit or proceeding, including injunctive actions, before any court or any governmental body or authority, pertaining to the transaction contemplated by this Agreement or to its consummation, shall have been instituted or threatened against Organic on or before the Closing Date.

5.5           Officer’s Certificate. Organic shall have delivered to NB a certificate dated the Closing Date signed by the Chief Executive Officer of Organic certifying that each of the conditions specified in this Article has been fulfilled and that all of the representations set forth in Article II are true and correct as of the Closing Date.

5.6           Other Conditions. Organic shall have completed the Private Placement required under Section 1.3 and the NB Principals shall have agreed to the revised terms of the Warrants as required under Section 1.5.

ARTICLE VI

Conditions Precedent to Organic’s Performance

6.1           Conditions. Organic’s obligations hereunder shall be subject to the satisfaction at or before the Closing Date of all the conditions set forth in this Article VI. Organic may waive any or all of these conditions in whole or in part without prior notice; provided, however, that no such waiver of a condition shall constitute a waiver by Organic of any other condition of or any of Organic’s rights or remedies, at law or in equity, if NB shall be in default of any of its representations, warranties or covenants under this Agreement.

6.2           Accuracy of Representations. Except as otherwise permitted by this Agreement, all representations and warranties by NB in this Agreement or in any written statement that shall be delivered to Organic by NB under this Agreement shall be true and accurate on and as of the Closing Date as though made at that time.

6.3           Performance. NB shall have performed, satisfied and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by it on or before the Closing Date.

6.4           Absence of Litigation. No action, suit or proceeding before any court or any governmental body or authority, pertaining to the transaction contemplated by this Agreement or to its consummation, shall have been instituted or threatened against NB on or before the Closing Date.
 
 
 
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6.5           Officer’s Certificate. NB shall have delivered to Organic a certificate dated the Closing Date signed by the Chief Executive Officer of NB certifying that each of the conditions specified in this Article has been fulfilled and that all of the representations set forth in Article III are true and correct as of the Closing Date.

6.6           Payment of Liabilities. On or before the Closing Date, NB shall have paid any outstanding obligations and liabilities of NB through the Closing Date, including obligations created subsequent to the execution of this Agreement.

6.7           Directors of NB. On the Closing Date, the Board of Directors of NB shall resign and elect as directors the Organic directors as set forth in Section 2.4.

6.8           Officers of NB. On the Closing Date, the newly constituted Board of Directors of NB shall elect the officers of Organic as set forth in Section 2.4 and NB’s existing executive officers shall resign.

ARTICLE VII

Closing

7.1           Closing. The closing of this Agreement shall be held at the offices of Gary A. Agron at any mutually agreeable time and date prior to April 30, 2008, unless extended by mutual agreement.  At the closing:

 
(a)
Organic shall deliver to NB (i) copies of Exhibit 1.2 executed by all of the Organic Security Holders, (ii) certificates representing all of the outstanding Organic Shares duly endorsed to NB, (iii) the officer’s certificate described in Section 5.5, and (iv) signed minutes of its directors approving this Agreement;

 
(b)
NB shall deliver to the Organic Security Holders (i) certificates representing an aggregate of 9,299,972 shares of NB’s common stock pursuant to the computations set forth in Exhibit 1.1 hereto, (ii) the officer’s certificate described in Section 6.5, (iii) signed minutes of its directors approving this Agreement, and (iv) resignations of its directors and executive officers pursuant to Sections 6.7 and 6.8; and

 
(c)
Organic shall deliver to certain stockholders of NB certified funds in the amount of $200,000 (less any payments previously made to such stockholders) in full payment for 500,000 shares of NB common stock held by the stockholders pursuant to Section 1.4, above. The subject 500,000 shares shall then be cancelled by Organic.

 
 
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ARTICLE VIII

Covenants Subsequent to the Closing Date

8.1           Registration and Listing. Following the Closing Date, NB shall use its best efforts to:

 
(a)
Continue NB’s common stock quotation on the Pink Sheets;
 
 
(b)
List NB’s securities in Standard & Poor’s OTC or Corporate Manual; and
 
 
(c)
File, within 90 days from the Closing Date,  a registration statement on Form S-1 with the Securities and Exchange Commission registering all of the shares of common stock and common stock underlying the Warrants held by the NB Principals, along with certain other shareholders for whom NB may agree to register such shares.

ARTICLE IX

Miscellaneous

9.1           Captions and Headings. The article and Section headings throughout this Agreement are for convenience and reference only and shall not define, limit or add to the meaning of any provision of this Agreement.

9.2           No Oral Change. This Agreement and any provision hereof may not be waived, changed, modified or discharged orally, but only by an agreement in writing signed by the party against whom enforcement of any such waiver, change, modification or discharge is sought.

9.3           Non-Waiver. The failure of any party to insist in any one or more cases upon the performance of any of the provisions, covenants or conditions of this Agreement or to exercise any option herein contained shall not be construed as a waiver or relinquishment for the future of any such provisions, covenants or conditions.  No waiver by any party of one breach by another party shall be construed as a waiver with respect to any other subsequent breach.

9.4           Time of Essence. Time is of the essence of this Agreement and of each and every provision hereof.

9.5           Entire Agreement. This Agreement contains the entire Agreement and understanding between the parties hereto and supersedes all prior agreements and understandings.

9.6           Choice of Law. This Agreement and its application shall be governed by the laws of the state of Nevada.
 
9.7           Counterparts. This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
 
 
 
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9.8           Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the third day after mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, and properly addressed as follows:
 
NB:
NB Design and Licensing, Inc.
 
2560 W. Main Street, Suite 200
 
Littleton, Colorado  80120
 
Attn:  Robert S. Lazzeri, Chief Executive Officer
   
Organic:
Organic Alliance, Inc.
 
1250 NE Loop 410, Suite 320
 
San Antonio, TX 78209
 
Attn:  Tom Morrison, Chief Executive Officer


9.9           Binding Effect. This Agreement shall inure to and be binding upon the heirs, executors, personal representatives, successors and assigns of each of the parties to this Agreement.

9.10           Mutual Cooperation. The parties hereto shall cooperate with each other to achieve the purpose of this Agreement and shall execute such other and further documents and take such other and further actions as may be necessary or convenient to effect the transaction described herein.

9.11           Finders. There are no finders in connection with this transaction.

9.12           Announcements.  The parties will consult and cooperate with each other as to the timing and content of any public announcements regarding this Agreement.

9.13           Expenses. Each party will bear their own expenses, including legal fees incurred in connection with this Agreement.

9.14           Survival of Representations and Warranties. The representations, warranties, covenants and agreements of the parties set forth in this Agreement or in any instrument, certificate, opinion or other writing providing for in it, shall survive the Closing Date.

9.15           Exhibits. As of the execution hereof, the parties have provided each other with the exhibits described herein.  Any material changes to the exhibits shall be immediately disclosed to the other party.

9.16           Legal Counsel. NB has been represented by Gary A. Agron, Esq. (“Agron”) in connection with this Agreement and Organic has been advised by separate counsel selected by it.  The parties acknowledge that Agron has previously represented certain of Organic’s principals in connection with other matters.  Both parties waive any potential for a conflict of interest that may arise in connection with Agron’s prior representation of the parties and specifically waive any conflict of interest, claim or cause of action that may arise in connection with such prior representation.
 
 
 
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9.17           Termination, Amendment and Waiver.

(a)           Termination.  This Agreement may be terminated at any time prior to the Closing Date, whether before or after approval of matters presented in connection with the share exchange by the stockholders of NB or by the stockholders of Organic:

(1)           By mutual written consent of Organic and NB;

(2)           By either Organic or NB;

 
(i)
If any court of competent jurisdiction or any governmental, administrative or regulatory authority, agency or body shall have issued an order, decree or ruling or taken any other action permanently enjoining, restraining or otherwise prohibiting the transactions contemplated by this Agreement; or

 
(ii)
If the transaction shall not have been consummated on or before April 30, 2008, unless the failure to consummate the transaction is the result of a material breach of this Agreement by the party seeking to terminate this Agreement.  If the failure to consummate the transaction is the result of a material breach by Organic, including its inability to raise the $210,000 of equity financing required in Section 1.3, then NB shall retain the $15,000 deposit made to it by Organic with the letter of intent executed by the parties on February 15, 2008.

(3)           By Organic, if NB breaches any of its representations or warranties hereof or fails to perform in any material respect any of its covenants, agreements or obligations under this Agreement; and

(4)           By NB, if Organic breaches any of its representations or warranties hereof or fails to perform in any material respect any of its covenants, agreements or obligations under this Agreement.

(b)           Effect of Termination.  In the event of termination of this Agreement by either NB or Organic, as provided herein, this Agreement shall forthwith become void and have no effect, without any liability or obligation on the part of Organic or NB, except as set forth in 9.17(a)(2)(ii) above with respect to the $15,000 deposit by Organic, and such termination shall not relieve any party hereto for any intentional breach prior to such termination by a party hereto of any of its representations or warranties or any of its covenants or agreements set forth in this Agreement.
 
 
 
 
-13-

 
 

(c)           Extension; Waiver.  At any time prior to the Closing Date, the parties may, to the extent legally allowed, (a) extend the time for the performance of any of the obligation of the other acts of the other parties, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto or waive compliance with any of the agreements or conditions contained herein.  Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party.  The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights.

(d)           Procedure for Termination, Amendment, Extension or Waiver.  A termination of this Agreement, an amendment of this Agreement or an extension or waiver shall, in order to be effective, require in the case of Organic or NB, action by its respective Board of Directors or the duly authorized designee of such Board of Directors.

[Remainder of Page Intentionally Blank; Signature Page Follows]
 
 
 
 
-14-

 
 
 
In witness whereof, the parties have executed this Agreement Concerning the Exchange of Securities on the date indicated above.

NB DESIGN AND LICENSING, INC
 
ORGANIC ALLIANCE, INC.
By:
/s/ Robert S. Lazzeri
 
By:
/s/ Thomas Morrison
 
Robert S. Lazzeri
Chief Executive Officer
   
Thomas Morrison
Chief Executive Officer

 
SOLELY AS TO SECTION 1.5:

The NB Principals:
 
/s/ Earnest Mathis
Name of NB Principal:  MATHIS FAMILY PARTNERS, LTD.
   
Name of Authorized Signator: EARNEST MATHIS
   
Number of NB Shares Owned on Closing Date: 560,000
   
Number of NB Warrants Owned on Closing Date: 3,360,000
   

 /s/ Robert Lazzeri
Name of NB Principal: LAZZERI FAMILY TRUST
   
Name of Authorized Signator: ROBERT LAZZERI    
   
Number of NB Shares Owned on Closing Date: 240,000
   
Number of NB Warrants Owned on Closing Date: 1,440,000
   


Name of NB Principal:
   
Name of Authorized Signator:
   
Number of NB Shares Owned on Closing Date:
   
Number of NB Warrants Owned on Closing Date:
   


Name of NB Principal:
   
Name of Authorized Signator:
   
Number of NB Shares Owned on Closing Date:
   
Number of NB Warrants Owned on Closing Date:
   


Name of NB Principal:
   
Name of Authorized Signator:
   
Number of NB Shares Owned on Closing Date:
   
Number of NB Warrants Owned on Closing Date:
   
 
 
 
 
 
-15-

 

 
EXHIBIT 1.1

SCHEDULE OF ORGANIC SECURITY HOLDERS
AND
ALLOCATION OF NB COMMON SHARES

Name of Organic
Security Holder
 
SS or
TAX IS #
 
Number of Organic
Shares Exchanged
 
Number of
NB Common
Shares to be Issued
 
Agron, Gary
 
###-##-####
 
40,000
 
123,740
Best, Inc.
c/o Jeff Morehouse
 
74-2183569
 
500,000
 
421,750
Briant, Cap
 
###-##-####
 
475,000
 
400,663
Canales, M.C.
 
###-##-####
 
50,000
 
42,175
Carter, Chris
 
###-##-####
 
30,000
 
25,305
CEOCAST, Inc.
Rachel Glicksman
(Michael Wachs)
 
###-##-####
 
200,000
 
168,700
CSM Consulting, LLC
Mallangi, Chandrasekhara
 
###-##-####
 
30,000
 
25,305
Doro, Benny
 
Not US Ctzn
 
300,000
 
253,050
Freeman, Sam
 
###-##-####
 
240,000
 
202,440
Gallagher, W.H. Benjamin
 
###-##-####
 
500,000
 
421,750
Gallagher, William
 
###-##-####
 
500,000
 
421,750
Hargis, W. Curtis
 
###-##-####
 
100,000
 
84,350
Hawn, Gray
 
###-##-####
 
30,000
 
25,305
Haworth, James Harold
 
###-##-####
 
1,000,000
 
843,500
Heesch, Theodore
 
###-##-####
 
100,000
 
84,350
Institutional Analyst, Inc.
Perry, Roland
 
###-##-####
 
100,000
 
84,350
KBK Venture, TX
David Broomberg
 
76-0589764
 
250,000
 
210,875
Khan, Christee
 
###-##-####
 
30,000
 
25,305
Knight, Peggy
     
30,000
 
25,305
Kriese, Alicia Smith
 
###-##-####
 
1,000,000
 
843,500
Lippincott, Robert
 
###-##-####
 
100,000
 
84,350
 
 
 
 
 
-16-

 
 
ALLOCATION OF NB COMMON SHARES

Name of Organic
Security Holder
 
SS or
TAX IS #
 
Number of Organic
Shares Exchanged
 
Number of
NB Common
Shares to be Issued
Lyman, Inc.
c/o Jeff Morehouse
 
74-2183569
 
500,000
 
421,750
Magnet Marketing, Inc.
Benny Doro
 
Not US Ctzn
 
200,000
 
168,700
Malone, Mark
 
###-##-####
 
50,000
 
42,175
McMahon, Jeramy
 
###-##-####
 
30,000
 
25,305
Moody, Dan Jr.
 
###-##-####
 
31,580
 
26,638
Moody, Dan III
 
###-##-####
 
31,580
 
26,638
Morehouse, Jeff
 
###-##-####
 
400,000
 
337,400
Morehouse, Jeff (TTE)
 
74-2183569
 
148,758
 
125,477
Morrison, Tom
 
###-##-####
 
1,500,000
 
1,265,250
Navy, Atasha
 
###-##-####
 
200,000
 
168,700
Ogo, Inc.
Benny Doro
 
Not US Ctzn
 
200,000
 
168,700
Posa, Phillip
 
###-##-####
 
25,000
 
21,088
Puccio, Thomas
 
###-##-####
 
100,000
 
84,350
Reitz, Patricia
 
###-##-####
 
100,000
 
84,350
Rosser, Brook
 
###-##-####
 
250,000
 
210,875
Rosser, Steves
 
###-##-####
 
100,000
 
84,350
Stern, Michael
 
###-##-####
 
50,000
 
42,175
TriEquity, Inc.
Bill Castellano
 
###-##-####
 
100,000
 
84,350
Vaello, Donald
 
###-##-####
 
30,000
 
25,305
Webb, Graydon
 
###-##-####
 
50,000
 
42,175
Winning Fund Mgmt
Benny Doro
 
Not US Ctzn
 
100,000
 
84,350
Wood, Louis
 
###-##-####
 
30,000
 
25,305
ZZ Bottom, Inc.
c/o Jeff Morehouse
 
74-2183569
 
500,000
 
421,750
Lee, Kin Tung
 
###-##-####
 
50,000
 
50,000
Lee, Kin Pong
 
###-##-####
 
16,666
 
16,666
 
 
 
 
 
-17-

 
 
ALLOCATION OF NB COMMON SHARES

Name of Organic
Security Holder
 
SS or
TAX IS #
 
Number of Organic
Shares Exchanged
 
Number of
NB Common
Shares to be Issued
Lupinetti, Anthony
 
###-##-####
 
100,000
 
100,000
Munyon, Ronald
 
###-##-####
 
100,000
 
100,000
Nowakowski, Troy
 
###-##-####
 
35,000
 
35,000
Penariello, Peter
 
###-##-####
 
33,333
 
33,333
Ruth, Corey
Ruth, Gail
 
###-##-####
###-##-####
 
33,333
 
33,333
Ruth, Don
Ruth, Elaine
 
###-##-####
###-##-####
 
33,333
 
33,333
Simanski, Renee
 
###-##-####
 
200,000
 
200,000
             
TOTALS
     
10,933,583
 
9,406,638
         


[We need Bill G. to insert names and share amounts of all the Organic Security Holders, including private placement people, following the closing of the private placement and to obtain their signatures on Exhibit 1.2]
 
 
 
 
-18-

 
 

 
EXHIBIT 1.2

SUBSCRIPTION AGREEMENT


I hereby represent and warrant to NB that I have the full power and authority to execute, deliver and perform this Subscription Agreement and to consummate the transactions contemplated hereby.  This Subscription Agreement is a legal, valid and binding obligation of mine, enforceable against me in accordance with its terms.  I own the securities in Organic that I am exchanging for securities of NB free and clear of all pledges, liens, encumbrances, security interests, equities, claims, options, preemptive rights, rights of first refusal, or any other limitation on my ability to vote such securities or to transfer such securities to NB.  I have full right, title and interest in and to the Organic securities that I am exchanging.

I understand that NB’s common stock (the “Securities) is being issued to me in a private transaction in exchange for my securities in Organic and in reliance upon the exemption provided in section 4(2) and/or Regulation D under the Securities Act of 1933, as amended (the “Act”) for non-public offerings and pursuant to the Exchange Agreement.  I understand that the Securities are “restricted” under applicable securities laws and may not be sold by me except in a registered offering (which may not ever occur) or in a private transaction like this one.  I know this is an illiquid investment and that therefore I may be required to hold the Securities for an indefinite period of time, but under no circumstances less than one year from the date of their issuance.

I am acquiring the Securities solely for my own account, for long-term investment purposes only and not with a view to sale or other distribution.  I agree not to dispose of any Securities unless and until counsel for NB shall have determined that the intended disposition is permissible and does not violate the Act, any applicable state securities laws or rules and regulations promulgated thereunder.

All information, financial and otherwise, or documentation pertaining to all aspects of my acquisition of the Securities and the activities and financial information of NB has been made available to me and my representatives, if any, and I have had ample opportunity to meet with and ask questions of senior officers of NB, and I have received satisfactory answers to any questions I asked.

In acquiring the Securities, I have been afforded access to the Exchange Agreement and have made such independent investigations of NB as I deemed appropriate.  I am an “accredited investor” as that term is defined in Regulation D, Rule 501 of the Act and am an experienced investor, have made speculative investments in the past and am capable of analyzing the merits of an investment in the Securities.
 
 
 


 
I understand that the Securities are highly speculative, involve a great degree of risk and should only be acquired by individuals who can afford to lose their entire investment.  Nevertheless, I consider this a suitable investment for me because I have adequate financial resources and income to maintain my current standard of living even after my acquisition of the Securities.  I know that NB currently has only negligible assets and liabilities, and that although I could lose my entire investment, I am acquiring the Securities because I believe the potential rewards are commensurate with the risk.  Even if the Securities became worthless, I could still maintain my standard of living without significant hardship to me or my family.

By signing this Subscription Agreement, I also accept and agree to be bound by and to abide by the terms and conditions of the Exchange Agreement as if I had executed the Exchange Agreement itself.


Date:
 
, 2008
 



  _____________________________________
 
Signature
 
  _____________________________________
 
Name, Please Print
 
  _____________________________________
 
Residence Address
 
  _____________________________________
 
City, State and Zip Code
 
  _____________________________________
 
Area Code and Telephone Number
 
  _____________________________________
 
Social Security Number
 
  _____________________________________
 
Number of Organic Shares exchanged

 
 
 
-2-

 
 
EXHIBIT 2.5

FINANCIAL STATEMENTS OF ORGANIC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
EXHIBIT 3.5

FINANCIAL STATEMENTS OF NB
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

EX-23.1 6 ex23-1.htm CONSENT OF WEAVER & MARTIN, LLC, AN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ex23-1.htm
Exhibit 23.1
 
  
 
  CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

As an independent registered public accounting firm, we hereby consent to the use, in the Registration Statement on Form S-1, of our report dated March 3, 2008, relating to the financial statements of Organic Alliance, Inc. (formerly NB Design and Licensing, Inc.) as of December 31, 2007 and 2006 and for the years then ended.  We also consent to the reference to our firm under the caption “Experts” in the Prospectus contained in said Registration Statement filed with the Securities and Exchange Commission.

 
      /s/   Weaver & Martin, LLC
     
Weaver & Martin, LLC
       
 
                                                                

Kansas City, Missouri
August 12, 2008
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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