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PaddleWheel Productions, Inc. Prospectus
5
Voting Rights. Each share of common stock entitles the holder to one vote on all matters to be voted on by shareholders including the annual election of directors. Preferred stock does not entitle the holder to any voting rights.
Preemptive Rights. No preemptive rights exist as to the holders of the common stock or preferred stock.
Liquidation Rights. In the event of any liquidation, dissolution, or winding up of PaddleWheel Productions, Inc., whether voluntary or involuntary, the holders of shares of Preferred Stock shall, to the extent of Nine Hundred Ninety Dollars ($990) per share and to the extent of any unpaid dividends accrued thereon, net creditor's claims, be entitled to priority of payment out of the assets of PaddleWheel Productions, Inc. over the holders of any other class of stock of PaddleWheel Productions, Inc. The holders of Preferred Stock shall not participate in any further distribution of the assets of PaddleWheel Productions, Inc.
Redemption. The Company may redeem preferred stock at any time at the Company's option for face value plus all accrued but unpaid cumulative dividends (5% simple interest on face value annually, plus a premium of ten percent (10%) of face value.)
Articles of Incorporation. The Company has the right to amend its Articles of Incorporation upon the affirmative vote of a majority of the shares entitled to vote thereon.
RISK FACTORS
In addition to the other information contained in this Prospectus, before investing the following risk factors should be carefully considered in evaluating the Company and its potential for success.
A New Corporation. PaddleWheel Productions, Inc. is a new organization and is susceptible to all the problems new organizations must face, and in this case particularly in attracting an audience initially. The mutually supportive enterprises, good productions and good marketing techniques should attract local, regional, and tourist audiences, both initially and on an on-going basis, but no guarantee can be made on attendance.
Dependence on Key Personnel. The Company believes that its success will depend to a significant extent upon the managers, qualified actors and actresses, and other key personnel who will be employed. The loss of the services of any significant number of these people over a short period of time would have an adverse effect on the company. Due to the amount of money needed for start-up, beginning salaries have been set low in order to reduce early expenses. Although talented, well trained people are attracted to the company because of its nature and are. willing to work at less than competitive salaries for a period of time, they cannot be retained for long on less than competitive salaries. Therefore, salaries must be made competitive to keep these necessary people, a factor which lowers the possibility of dividends being paid for some time.