UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
PAYMENT DATA SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
NEVADA 98-0190072
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(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
12500 SAN PEDRO, SUITE 120
SAN ANTONIO, TX 78216
Telephone: (210) 249-4100
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(Address, Including Zip Code and Telephone Number, of Principal Executive
Offices)
AMENDED AND RESTATED 1999 EMPLOYEE COMPREHENSIVE STOCK PLAN
AMENDED AND RESTATED 1999 NON-EMPLOYEE DIRECTOR PLAN
(Full Title of the Plans)
MICHAEL R. LONG
CHIEF EXECUTIVE OFFICER
12500 SAN PEDRO
SUITE 120
SAN ANTONIO, TEXAS 78216
(210) 249-4100
(Name, Address and Telephone Number,
including Area Code, of Agent for Service)
Copies of communications to:
AMY M. TROMBLY, ESQ.
TROMBLY BUSINESS LAW
1163 WALNUT STREET, SUITE 7
NEWTON, MA 02461
(617) 243-0060
CALCULATION OF REGISTRATION FEE
Title of each Proposed maximum Proposed maximum Amount
Class of securities Amount to be offering price aggregate offering of registration
To be registered registered per share price fee
Common Stock,
.001 Par Value 6,000,000 $0.33 $1,980,000 $233.05
(1) In addition, pursuant to Rule 416(c) under the Securities Act of 1933, this
registration statement also covers an indeterminate amount of interests to be
offered or sold pursuant to the employee benefit plan(s) described herein.
(2) The price of $0.33 per share, which was the average of the high and
low prices of the Registrant's Common Stock, as reported on the Over-The-Counter
Bulletin Board on January 24, 2005 is set forth solely for purposes of
calculating the registration fee pursuant to Rule 457(c) of the Securities Act
of 1933, as amended.
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
ITEM 1. PLAN INFORMATION
Pursuant to the Note to Part I of the Form S-8, the information required by Part
I is not filed with the Securities and Exchange Commission.
ITEM 2. REGISTRANT INFORMATION AND EMPLOYEE PLAN ANNUAL INFORMATION
The Registrant will provide without charge to each person to whom a copy of a
Section 10(a) Prospectus hereunder is delivered, upon the oral or written
request of such person, a copy of any document incorporated in this Registration
Statement by reference. Requests for such information should be directed to
Payment Data Systems, 12500 San Pedro, Suite 120, San Antonio, TX 78216.
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE.
The following documents are incorporated by reference in this registration
statement.
a) The Registrant's Annual Report on Form 10-K for the fiscal year ended
December 31, 2003 filed pursuant to Section 13(c) or 15(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act");
b) All other reports filed by Registrant pursuant to Section 13(c) or
15(d) of the Exchange Act since the end of the fiscal year covered by the Form
10-K referred to in (a) above.
c) The description of the common stock, $.001 par value per share (the
"Common Stock") of the Registrant is contained in the Registrant's annual report
on Form 10-K.
All documents filed by the Registrant pursuant to Section 13(a), 13(c), 14
and 15(d) of the Exchange Act subsequent to the date of this registration
statement and prior to the filing of a post-effective amendment to this
registration statement which indicates that all securities offered hereby have
been sold or which deregisters all securities then remaining unsold shall be
deemed to be incorporated in this registration statement by reference and to be
a part hereof from the date of filing of such documents. Any statement
contained in this registration statement, in a supplement to this registration
statement or in a document incorporated by reference herein, shall be deemed to
be modified or superseded for purposes of this registration statement to the
extent that a statement contained herein or in any subsequently filed supplement
to this registration statement or in any document that is subsequently
incorporated by reference herein modifies or supersedes such statement. Any
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this registration statement.
ITEM 4. DESCRIPTION OF SECURITIES
Not applicable. The class of securities to be offered is registered under
Section 12 of the Exchange Act.
ITEM 5. INTEREST OF NAMED EXPERTS AND COUNSEL
No expert or counsel will receive a direct or indirect interest in our company
or was our promoter, underwriter, voting trustee, director or officer or
employee. Nor does any expert or counsel have any contingent based agreement
with us or any other interest in or connection to us.
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Nevada law generally sets forth the powers of the Company to indemnify officers,
directors, employees and agents. The Articles of Incorporation for the Company
provide as follows:
No director or officer shall have any personal liability to the corporation or
its stockholders for the damages for breach of fiduciary duty as a director or
officer, except that this Article shall not eliminate or limit the liability of
a director or officer for (i) acts or omissions that involve intentional
misconduct, fraud or a knowing violation of the law, or (ii) the payment of
dividends in violation of Nevada Revised Statutes.
The By-laws of the Company provide as follows:
Every person who was or is a party or is threatened to be made a party to or is
involved in any action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of the fact that he or a person of
whom he is the legal representative is or was a Director or officer of the
corporation or is or was serving at the request of the corporation or for its
benefit as a Director or officer of another corporation, or as its
representative in a partnership, joint venture, trust or other enterprise, shall
be indemnified and held harmless to the fullest legally permissible extent under
the general Corporation Law of the State of Nevada from time to time against all
expenses, liability and loss (including attorney's fees, judgment, fines and
amounts paid or to be paid in settlement) reasonably incurred or suffered by him
in connection therewith. The expenses of officers and Directors incurred in
defending a civil or criminal action, suit or proceeding must be paid by the
corporation as they are incurred and in advance of the final disposition of the
action, suit or proceeding upon receipt of an undertaking by or on behalf of the
Director or officer to repay the amount if it is ultimately determined by a
court of competent jurisdiction that he is not entitled to be indemnified by the
corporation. Such right of indemnification shall be a contract right which may
be enforced in any manner desired by such person. Such right of indemnification
shall not be exclusive of any other right which such Directors, officers or
representatives may have or hereafter acquire and, without limiting the
generality of such statement, they shall be entitled to their respective rights
of indemnification under any bylaw, agreement, vote of stockholders, provision
of law or otherwise, as well as their rights under this Article.
The Board of Directors may cause the corporation to purchase and maintain
insurance on behalf of any person who is or was a Director or officer of the
corporation, or is or was serving at the request of the corporation as a
Director or officer of another corporation, or as its representative in a
partnership, joint venture, trust or other enterprise against any liability
asserted against such person and incurred in any such capacity or arising out of
such status, whether or not the corporation would have the power to indemnify
such person.
The Board of Directors may from time to time adopt further Bylaws with
respect to indemnification and amend these and such Bylaws to provide at all
times the fullest indemnification permitted by the General Corporation Law of
the State of Nevada.
Under the foregoing provisions of the Registrant's Articles of Incorporation and
By-Laws, each person who is or was a director or officer shall be indemnified by
the Registrant to the full extent permitted or authorized by the General
Corporation Law of Nevada. Under such law, to the extent that such person is
successful on the merits of defense of a suit or proceeding brought against such
person by reason of the fact that such person is a director or officer of
Payment Data Systems, such person shall be indemnified against expenses,
including attorneys' fees, reasonably incurred in connection with such
action. If unsuccessful in defense of a third-party civil suit or a
criminal suit or if such a suit is settled, such a person shall be
indemnified under such law against both (1)
expenses (including attorneys' fees) and (2) judgments, fines and amounts paid
in settlement if such person acted in good faith and in a manner such person
reasonably believed to be in, or not opposed to, our best interests, and with
respect to any criminal action, had no reasonable cause to believe such person's
conduct was unlawful.
Insofar as indemnification for liabilities arising under the Securities Act may
be permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable.
ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED.
Not applicable.
ITEM 8. EXHIBITS
Exhibit No. Description
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4.1 Amended and Restated 1999 Employee Comprehensive Stock Plan
4.2 Amended and Restated 1999 Non-Employee Director Plan
5.1 Opinion of Amy Trombly, Esq.
23.1 Consent of Akin, Doherty, Klein & Feuge, P.C.
23.2 Consent of Counsel (included in Exhibit 5.1 hereto).
ITEM 9. UNDERTAKINGS
(a) The Registrant hereby undertakes:
1. To file, during any period in which it offers or sells securities are
being made, a post-effective amendment to this registration statement to:
(i) Include any additional or changed material information with
respect to the plan of distribution.
2. For determining liability under the Securities Act of 1933, that
each post-effective amendment as a new registration statement of the
securities offered, and the offering of the securities at that time to be the
initial bona fide offering.
3. File a post-effective amendment to remove from registration any of the
securities that remain unsold at the end of the offering.
For determining any liability under the Securities Act, treat the information
omitted from the form of prospectus filed as part of this registration statement
in reliance upon Rule 430A and contained in form of prospectus filed by the
Registrant under Rule 424(b)(1), or (4) or 497(h) under the Securities
Act as part of this registration statement as of the time the Commission
declared it effective.
For determining any liability under the Securities Act, treat each
post-effective amendment that contains a form of prospectus as a new
registration statement for the securities offered in the registration statement,
and that offering of the securities at that time as the initial bona fide
offering of those securities.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of San Antonio, State of Texas on the 26th day of
January, 2005.
PAYMENT DATA SYSTEMS, INC.
By: /s/ Michael Long
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Michael R. Long
Chief Executive
Officer and Chief Financial Officer
SIGNATURES DATE
By: /s/ Michael R. Long
--------------------------------- January 26, 2005
Michael R. Long
Chief Executive
Officer and Chief Financial Officer
(principal executive officer and
principal financial and accounting officer)
By: /s/ Louis A. Hoch January 26, 2005
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Louis A. Hoch
President, Chief Operating Officer
and Director
By: /s/ Peter G. Kirby January 26, 2005
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Peter G. Kirby
Director