For OTC Meme Corp. Tokenization Program Participation
📋 Document Version: 1.0- 📅 Effective Date: August 2025
- 👥 Prepared By: OTC Meme Corp.
- 🔄 Review Cycle: Semi-Annual
📋 EXECUTIVE SUMMARY
This document establishes the mandatory share structure requirements for companies participating in the OTC Meme Corp. tokenization program. All participating companies must create and deposit Series "M" Preferred Stock that meets these exact specifications to ensure proper tokenization, regulatory compliance, and protection of all stakeholders.
📊 SECTION 1: SERIES "M" PREFERRED STOCK SPECIFICATIONS
🔧 1.1 MANDATORY SHARE CHARACTERISTICS
All Series "M" Preferred Stock MUST have the following exact specifications:
Attribute | Required Specification | Rationale |
|---|---|---|
🔢 Total Authorized | Exactly 1,000,000,000 shares | Enables micro-pricing and maximum liquidity |
💰 Par Value | $0.0001 per share | Minimizes capital requirements |
💵 Total Par Value | $100,000 | Fixed aggregate value |
🔒 Share Count | IMMUTABLE - Always 1,000,000,000 | Cannot change under any circumstances |
🗳️ Voting Rights | NONE (except as required by law) | Prevents governance interference |
💸 Dividend Rights | NONE | No economic participation |
⚖️ Liquidation Preference | NONE | No priority claims |
📊 Participation Rights | NONE | No economic benefits |
🚫 Preemptive Rights | NONE | No future purchase rights |
❌ Redemption Rights | NONE - Irrevocable | Company cannot recall |
🔒 Transfer Restrictions | PERMANENT - Non-transferable | Locked in perpetuity |
🔄 1.2 CONVERSION FEATURE REQUIREMENTS
📋 Mandatory Conversion Provisions:
🔧 CONVERSION SPECIFICATIONS:
- ⚖️ Base Ratio: 1:1 to Common Stock at creation
- 🔧 Adjustment: Ratio adjusts for corporate actions
- 📊 Share Count: NEVER changes from 1,000,000,000
- ⚡ Trigger Events: Automatic conversion upon specified events
- 📋 Post-Conversion: Shares remain in OTC Meme custody
📝 Example Scenarios:
- 📈 10:1 Reverse Split → Common goes from 10M to 1M, Series M stays at 1B
- 📉 1:10 Forward Split → Common goes from 1M to 10M, Series M stays at 1B
- 🔧 Conversion ratio adjusts accordingly, share count never changes
🛡️ SECTION 2: IMMUNITY REQUIREMENTS
🚫 2.1 COMPLETE CORPORATE ACTION IMMUNITY
Series "M" Preferred Stock MUST be completely immune from:
Corporate Action | Impact on Common | Impact on Series M |
|---|---|---|
📈 Forward Stock Split | Increases share count | 🚫 NO CHANGE - Remains 1B |
📉 Reverse Stock Split | Decreases share count | 🚫 NO CHANGE - Remains 1B |
💰 Stock Dividend | Increases shares | 🚫 NO CHANGE - Remains 1B |
🔄 Recapitalization | Changes structure | 🚫 NO CHANGE - Remains 1B |
🏗️ Reorganization | Modifies equity | 🚫 NO CHANGE - Remains 1B |
📊 Reclassification | Alters share classes | 🚫 NO CHANGE - Remains 1B |
🤝 Consolidation | Combines shares | 🚫 NO CHANGE - Remains 1B |
📈 Subdivision | Divides shares | 🚫 NO CHANGE - Remains 1B |
⚙️ 2.2 IMMUNITY IMPLEMENTATION
📋 Required Certificate of Designation Language:
"The Series 'M' Preferred Stock shall maintain exactly ONE BILLION
(1,000,000,000) shares outstanding regardless of any forward split,
reverse split, stock dividend, recapitalization, reorganization, or
any other corporate action affecting the Company's capital structure.
Only the conversion ratio to Common Stock shall adjust proportionally."🚫 SECTION 3: RESTRICTIVE PROVISIONS
🔒 3.1 MANDATORY RESTRICTIONS
🚫 A. Transfer Restrictions
- 🔒 Permanent Deposit: Irrevocably deposited to OTC Meme Corp.
- ❌ No Company Access: Company cannot retrieve shares
- 🚫 No Trading: Shares cannot be bought or sold
- ⛔ No Pledging: Cannot be used as collateral
- ❌ No Assignment: Rights cannot be transferred
💰 B. Economic Restrictions
- 🚫 No Dividends: Ever
- ❌ No Distributions: Of any kind
- ⛔ No Liquidation Rights: No participation in assets
- 🚫 No Residual Claims: No economic interest
- ❌ No Value Accrual: Purely for tokenization backing
🗳️ C. Governance Restrictions
- 🚫 No Voting: Except minimum statutory requirements
- ❌ No Board Seats: No representation rights
- ⛔ No Approval Rights: No veto powers
- 🚫 No Information Rights: Beyond statutory minimums
- ❌ No Participation: In corporate decisions
⚠️ 3.2 REQUIRED RESTRICTIVE LEGEND
All certificates and book entries MUST bear:
RESTRICTIVE LEGEND: These ONE BILLION Series 'M' Preferred Shares are
PERMANENTLY DEPOSITED TO OTC MEME CORP., held in custody by Empire Stock
Transfer, IMMUNE TO ALL CORPORATE ACTIONS, NON-VOTING, NON-PARTICIPATING,
and IRREVOCABLY COMMITTED TO TOKENIZATION. They can NEVER be recalled,
redeemed, transferred, or cancelled by the Company. These shares back
meme tokens that are ENTERTAINMENT COLLECTIBLES, NOT SECURITIES.🛡️ SECTION 4: PROTECTIVE TRIGGER EVENTS
⚡ 4.1 MANDATORY AUTOMATIC CONVERSION TRIGGERS
Series "M" MUST automatically convert to Common Stock upon:
Trigger Event | Conversion Timing | Effect |
|---|---|---|
💸 Bankruptcy Filing | Immediate upon filing | Protects token holders |
🏛️ SEC Enforcement | Upon action initiation | Preserves value |
⚖️ Criminal Indictment | Upon indictment | Risk mitigation |
🏛️ Transfer Agent Loss | Upon termination | Maintains records |
⚠️ Material Breach | Upon determination | Enforces rights |
❌ Good Standing Loss | Upon state action | Compliance protection |
📉 Exchange Delisting | Upon notice | Market protection |
🚨 Fraud Discovery | Upon verification | Investor protection |
🔄 4.2 POST-TRIGGER PROVISIONS
After Trigger Event:
🏛️ SECTION 5: DEPOSIT REQUIREMENTS
🔒 5.1 CUSTODY SPECIFICATIONS
📋 Mandatory Custody Structure:
CUSTODY HIERARCHY:
┌─────────────────────────────────┐
│ OTC Meme Corp. │ ← Perpetual Beneficial Owner
├─────────────────────────────────┤
│ Empire Stock Transfer │ ← SEC-Registered Custodian
├─────────────────────────────────┤
│ Series M Shares (1 Billion) │ ← Permanently Deposited
└─────────────────────────────────┘🏗️ 5.2 DEPOSIT CHARACTERISTICS
📋 Required Elements:
- 👥 Beneficiary: OTC Meme Corp. in perpetuity
- 🏛️ Custodian: Empire Stock Transfer, Inc.
- 📋 Account Name: "OTC Meme - [SYMBOL] Series M Reserve"
- ⏱️ Duration: PERPETUAL - No expiration
- 🔄 Reversibility: NONE - Completely irrevocable
- 🔒 Access: Company has ZERO access rights
🪙 SECTION 6: TOKENIZATION PARAMETERS
⚙️ 6.1 TOKEN CREATION REQUIREMENTS
📋 Mandatory Token Specifications:
Parameter | Requirement | Purpose |
|---|---|---|
🪙 Token Supply | Exactly 1,000,000,000 | 1:1 with shares |
⚖️ Backing Ratio | 1 token = 1 Series M share | Direct correlation |
⛓️ Blockchain | Solana | Speed and cost efficiency |
🚀 Launch Method | Bonding curve | Fair price discovery |
💰 Company Purchase | 40-60% at launch | Liquidity provision |
📈 Trading Venue | Raydium DEX (post-graduation) | Decentralized trading |
🎮 Token Type | Meme/Entertainment | Non-security classification |
🏢 6.2 COMPANY PARTICIPATION REQUIREMENTS
📋 Mandatory Company Commitments:
- 💰 Purchase 40-60% of tokens at initial offering
- 💳 Fund purchase via USDC or SOL
- 👛 Maintain verified Solana wallet
- ❌ Cannot redeem tokens for shares
- 🤖 Subject to smart contract restrictions
📄 SECTION 7: LEGAL DOCUMENTATION REQUIREMENTS
📋 7.1 REQUIRED CORPORATE DOCUMENTS
Must be executed BEFORE deposit:
- 📊 Board Resolution - Unanimous consent authorizing Series M
- 📄 Certificate of Designation - Filed with Secretary of State
- 🤝 Tripartite Agreement - Among Company, OTC Meme, Empire
- 📤 Issuance Letter - Irrevocable deposit instructions
- ⚖️ Legal Opinion - Valid issuance confirmation
- 📋 Secretary's Certificate - Authenticating all actions
📋 7.2 REQUIRED DISCLOSURES
Company MUST acknowledge:
- 🔒 Permanent nature of deposit
- 🚫 Non-security status of tokens
- 🎮 Entertainment/collectible purpose
- ❌ Inapplicability of Rule 144
- ⚠️ Market risk of token trading
- 🚫 No profit expectations
🚫 SECTION 8: PROHIBITED STRUCTURES
❌ 8.1 UNACCEPTABLE SHARE FEATURES
The following are STRICTLY PROHIBITED:
⚠️ 8.2 DISQUALIFYING CONDITIONS
Companies CANNOT participate if:
- 🚫 Unable to create preferred shares
- 💸 Under bankruptcy proceedings
- 🏛️ Subject to SEC enforcement
- ⚖️ Criminal proceedings pending
- ❌ Not in good standing
- 🏛️ Transfer agent issues exist
- 💰 Cannot meet funding requirements
- 📊 Existing share structure conflicts
📋 SECTION 9: COMPLIANCE REQUIREMENTS
🏛️ 9.1 REGULATORY ALIGNMENT
Structure MUST comply with:
Regulation | Requirement | Implementation |
|---|---|---|
🏛️ SEC Meme Coin Guidance | Entertainment purpose | Clear documentation |
🏛️ State Corporate Law | Valid authorization | Proper board action |
🏛️ Transfer Agent Rules | Proper custody | Empire Stock Transfer |
⚖️ Securities Laws | Non-security structure | Howey Shield design |
🔍 AML/KYC Requirements | Identity verification | Platform compliance |
📋 9.2 ONGOING OBLIGATIONS
Company MUST maintain:
- ✅ Good standing in state of incorporation
- 🏛️ Current transfer agent relationship
- 📊 Accurate shareholder records
- 📋 Compliance with all regulations
- 📢 Transparent communications
- 🚫 No market manipulation
✅ SECTION 10: VERIFICATION REQUIREMENTS
🔍 10.1 PRE-DEPOSIT VERIFICATION
OTC Meme Corp. will verify:
- 📄 Certificate of Designation properly filed
- 📊 1 billion shares properly authorized
- 🛡️ All immunities properly included
- ⚡ Conversion triggers properly specified
- 📊 Board resolution properly executed
- ⚖️ Legal opinion obtained
- ✅ Company in good standing
- 💰 Funding confirmed for token purchase
✅ 10.2 POST-DEPOSIT CONFIRMATION
Empire Stock Transfer will confirm:
- 📊 1 billion Series M shares received
- 🏛️ Deposited to OTC Meme Corp. account
- ⚠️ Restrictive legends applied
- 🔒 Custody account established
- 📊 Oracle feed activated
- 🔒 Permanent hold confirmed
💰 SECTION 11: FEE STRUCTURE REQUIREMENTS
📊 11.1 MANDATORY FEE ALLOCATION
All transactions MUST include:
Recipient | Fee Percentage | Collection Method | Purpose |
|---|---|---|---|
🚀 OTC Meme Corp. | 0.04% | Smart contract | Platform operations |
🏛️ Empire Stock Transfer | 0.01% | Smart contract | Custody services |
💰 Total Fees | 0.05% | Automatic | Ecosystem support |
📋 11.2 FEE CHARACTERISTICS
- 🔒 Permanent: Cannot be modified
- 🤖 Automatic: Collected via smart contract
- 📊 Non-negotiable: Same for all participants
- 👀 Transparent: Visible on blockchain
✅ SECTION 12: IMPLEMENTATION CHECKLIST
📋 PHASE 1: PREPARATION
👥 PHASE 2: AUTHORIZATION
- 📅 Board meeting/written consent
- ✅ Approve Series M creation
- 📊 Authorize 1 billion shares
- 🔒 Approve perpetual deposit
- 👨💼 Authorize officer actions
🏛️ PHASE 3: FILING
- 📤 File Certificate of Designation
- ✅ Receive state confirmation
- 📋 Update corporate records
- 📞 Notify current transfer agent
- 📄 Prepare share certificates
🚀 PHASE 4: EXECUTION
- 🤝 Sign Tripartite Agreement
- 📤 Execute Issuance Letter
- 📤 Transfer shares to Empire
- 👛 Verify wallet address
- 💰 Fund token purchase
🪙 PHASE 5: TOKENIZATION
- ✅ Receive custody confirmation
- 🪙 Token creation authorized
- 💰 Execute token purchase
- 📈 Commence trading
- 📊 Monitor compliance
📋 APPENDICES
📊 APPENDIX A: SAMPLE CALCULATIONS
📈 Corporate Action Impact Examples:
📊 SCENARIO 1: 10:1 Reverse Split
Common Stock: 10,000,000 → 1,000,000
Series M: 1,000,000,000 → 1,000,000,000 (NO CHANGE)
New Conversion: 1 Series M = 10 Common📊 SCENARIO 2: 1:5 Forward Split
Common Stock: 1,000,000 → 5,000,000
Series M: 1,000,000,000 → 1,000,000,000 (NO CHANGE)
New Conversion: 1 Series M = 0.2 Common📚 APPENDIX B: KEY DEFINITIONS
- 📊 Series "M" Preferred Stock: Special class of shares created exclusively for tokenization
- 🛡️ Immunity: Complete protection from corporate actions affecting share count
- 🔒 Perpetual Deposit: Permanent, irrevocable transfer to OTC Meme Corp.
- 🪙 Tokenization: Creation of 1:1 backed meme tokens for trading
- 📈 Bonding Curve: Algorithmic price discovery mechanism
- ⚡ Trigger Events: Conditions causing automatic conversion to common
📞 APPENDIX C: CONTACT INFORMATION
🚀 OTC Meme Corp.
240 Vaughn Dr, Ste 8
Alpharetta, GA 30009
Email: operations@otc.meme🏛️ Empire Stock Transfer
1859 Whitney Mesa Dr
Henderson, NV 89014
Email: custody@empirestock.com⚠️ IMPORTANT DISCLAIMERS:
- 📋 This document defines mandatory requirements for participation
- 🚫 No deviations from these specifications are permitted
- ⚖️ Legal counsel review is strongly recommended
- 💰 Tax implications should be evaluated independently
- 📊 Share structure must be exact as specified
📋 Document Control:
- 🔍 Classification: PUBLIC - For Distribution to Prospective Participants
- 👥 Review Authority: OTC Meme Corp. Legal Department
- 📅 Next Review: August 2026