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PaddleWheel Productions, Inc. Prospectus
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production and management expense. Investment funds will also be used to augment the operating budget, if necessary, particularly until the business stabilizes. Investment funds may also be used for capital improvements as deemed necessary by the Board of Directors. Because the expense of starting a new theatre is great and time is required to build a business, investment funds and any net profit will be used to stabilize the business for two years or for the length of time required to establish stability.
PaddleWheel anticipates that the dollar amount of proceeds from the sale of Investment Units will be used as follows (all figures are approximate):
Down payment on Mortgage Loan for Land and Building	$191,000
Pre-opening advertising expense and programs	28,000
Stage and porch furniture, shop and office equipment	13,800
Employee salaries (3 months, as needed schedule)	100,920
Inventory (Gift Shop and Bar)	13,000
Flats, costumes, props, etc.	11,000
Insurance, Legal Fees, Licenses, etc.	12,400
Other (telephone, royalties, office supplies, rentals, etc.)	6.000
$376,620
Offering Price. The total number of One Thousand Dollar ($1,000) investment units, each consisting of one share of preferred stock and one share of common stock, was determined based on the expected early needs of the Company. However, the price of the common stock is not related to any historical or projected future earnings, market value or any other objective criteria. No assurance is or can be given that any of the stock can be resold for the offering price or for any other amount.
Escrow Agreement. For the protection of the initial investors in the Company the initial investors will be asked to enter into an Escrow Agreement. Pursuant to the terms of the Escrow Agreement, the money which is raised from the sale of investment units will be escrowed with the Escrow Agent until a total of Four Hundred Thousand Dollars ($400,000)(the "Target Amount") is received from investors. If the Company raises the Target Amount by June, 2001, then pursuant to the terms of the Escrow Agreement will release the entire Escrow Agcount to the Company plus interest less the Escrow Agent fees. If the Company does not raise the Target Amount by June 30, 2001, then pursuant to the terms of the Escrow Agreement the Escrow Agent will release the entire Escrow Account to the investors plus interest less the Escrow Agent fees. Once the Target Amount has been raised from the sale of investment units subsequent investors will not be required to enter into an Escrow Agreement, and the consideration paid by such subsequent investors shall be the property of the Company.
MANAGEMENT
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The three Incorporators of Paddle Wheel Productions Inc. are in charge of the management of PaddleWheel and are the sole current members of the Board of Directors. In over-all concerns, the directors operate as a Board in making decisions. Each director has specific responsibilities to the operation of PaddleWheel Productions as outlined as follows: