Nevada
|
7380
|
26-1580812
|
(State
or jurisdiction
|
(Primary
Standard
|
(IRS
Employer
|
of
incorporation or
|
Industrial
|
Identification
|
organization)
|
Classification
Code
Number)
|
No.)
|
David
M. Loev
|
John
S. Gillies
|
|
The
Loev Law Firm, PC
|
The
Loev Law Firm, PC
|
|
6300
West Loop South, Suite 280
|
&
|
6300
West Loop South, Suite 280
|
Bellaire,
Texas 77401
|
Bellaire,
Texas 77401
|
|
Phone:
(713) 524-4110
|
Phone:
(713) 524-4110
|
|
Fax:
(713) 524-4122
|
Fax:
(713) 456-7908
|
Large
accelerated filer
¨
|
Accelerated
filer
¨
|
Non-accelerated
filer
¨
|
Smaller
reporting company
ý
|
Title
of Each Class of Securities To be Registered
|
Amount
Being
Registered
|
Proposed
Maximum Price Per Share(1)
|
Proposed
Maximum Aggregate Price(1)
|
Amount
of Registration Fee
|
Common
Stock
|
232,500
|
$0.10
|
$23,250
|
$0.93
|
Total
|
232,500
|
$0.10
|
$23,250
|
$0.93
|
Prospectus
Summary
|
4
|
Summary
Financial Data
|
6
|
Risk
Factors
|
7
|
Use
of Proceeds
|
13
|
Dividend
Policy
|
13
|
Legal
Proceedings
|
13
|
Directors,
Executive Officers, Promoters and Control Persons
|
13
|
Security
Ownership of Certain Beneficial Owners and Management
|
14
|
Interest
of Named Experts and Counsel
|
14
|
Indemnification
of Directors and Officers
|
15
|
Description
of Business
|
16
|
Description
of Property
|
18
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
19
|
Certain
Relationships and Related Transactions
|
21
|
Executive
Compensation
|
22
|
Corporate
Governance
|
23
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
23
|
Descriptions
of Capital Stock
|
23
|
Shares
Available for Future Sale
|
24
|
Plan
of Distribution and Selling Stockholders
|
25
|
Market
for Common Equity and Related Stockholder Matters
|
28
|
Additional
Information
|
28
|
Legal
Matters
|
28
|
Financial
Statements
|
F-1
|
Part
II
|
31
|
Common
Stock Offered:
|
232,500
shares by selling stockholders
|
Common
Stock Outstanding Before The Offering:
|
3,232,500
shares
|
Common
Stock Outstanding After The Offering:
|
3,232,500
shares
|
Use
Of Proceeds:
|
We
will not receive any proceeds from the shares offered by the selling
stockholders in this offering.
|
Offering
Price:
|
The
offering price of the shares has been arbitrarily determined by us based
on estimates of the price that purchasers of speculative securities, such
as the shares, will be willing to pay considering the nature and capital
structure of our Company, the experience of our officers and Directors and
the market conditions for the sale of equity securities in similar
companies. The offering price of the shares bears no relationship to the
assets, earnings or book value of us, or any other objective standard of
value. We believe that no shares will be sold by the selling shareholders
prior to us becoming a publicly traded company, at which time the selling
shareholders will sell shares based on the market price of such shares. We
are not selling any shares of our common stock, and are only registering
the re-sale of shares of common stock previously sold by
us.
|
No
Market:
|
No
assurance is provided that a market will be created for our securities in
the future, or at all. If in the future a market does exist for our
securities, it is likely to be highly illiquid and
sporadic.
|
Need
for Additional Financing:
|
We
have generated limited revenues to date and anticipate the need for
approximately $75,000 of additional funding to continue our business
operations for the next 12 months and an additional $175,000 to expand our
operations, of which there can be no assurance will be
raised. If we are unable to raise the additional funding, the
value of our securities, if any, would likely become worthless and we may
be forced to abandon our business plan. Even assuming we raise
the additional capital we require to continue our business operations, we
will require substantial fees and expenses associated with this offering,
and we anticipate incurring net losses for the foreseeable
future.
|
Address:
|
201
Creekvista Drive
|
Holly
Springs, North Carolina 27540
|
|
Telephone
Number:
|
(919)
552-3133
|
April
30, 2008
|
January 31,
2008
|
|||||||
Cash
and cash equivalents
|
$ | 131 | $ | 1,959 | ||||
preciation)
Prepaid and other assets
|
30,000 | 33,611 | ||||||
Total
assets
|
30,131 | 35,570 | ||||||
Total
liabilities
|
53,145 | 48,347 | ||||||
Total
stockholders' deficit
|
23,014 | 12,777 |
Three
Months
Ended April
30,
|
Year
Ended
January 31,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||
Revenues
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
5,705
|
||||||
Operating
loss
|
(9,569)
|
(1,957)
|
(12,854)
|
(1,770)
|
||||||||||
Net
loss
|
(10,237)
|
(1,957)
|
(13,751)
|
(1,900)
|
||||||||||
Loss
per share
|
(0.00)
|
(0.00)
|
(0.01)
|
(0.00)
|
(1)
|
actual
or anticipated variations in our results of operations;
|
|
(2)
|
our
ability or inability to generate new revenues;
|
|
(3)
|
the
number of shares in our public float;
|
|
(4)
|
increased
competition; and
|
|
(5)
|
conditions
and trends in the market for event planning services and event
venues.
|
Name
|
Age
|
Position
|
MaryAnne
McAdams
|
36
|
Chief
Executive Officer, President,
Secretary,
Treasurer
and
Director
|
Name
and Address of Beneficial Owner
|
Shares
Beneficially Owned
|
Percentage
Beneficially Owned
(1)
|
MaryAnne
McAdams,
CEO,
President, Secretary, Treasurer and Director
201
Creekvista Dr.
Holly
Springs, NC 27540
|
1,500,000
|
46.4%
|
David
M. Loev
6300
West Loop South
Suite
280
Bellaire,
TX 77401
|
1,500,000
|
46.4%
|
All
Officers and Directors as a Group (1 person)
|
1,500,000
|
46.4%
|
|
·
|
venue
prospecting and management,
|
|
·
|
contract
negotiation,
|
|
·
|
menu
planning,
|
|
·
|
audio/visual
equipment rental arrangements,
|
|
·
|
car/limo
arrangements for program speaker(s) or attendees (as
appropriate),
|
|
·
|
travel/hotel
accommodations (as appropriate),
|
|
·
|
attendee
registration confirmation with name
badges,
|
|
·
|
preparation
of an event resume to outline all program
details,
|
|
·
|
generation
of an electronic flyer (e-flyer) to promote the
event,
|
|
·
|
invoice
reconciliation,
|
|
·
|
managing
RSVP process (as requested):
|
|
·
|
coordination
and delivery of relevant materials for program (as
requested):
|
|
o
|
communication
with fulfillment house regarding specific materials to be delivered for
program,
|
|
o
|
coordination
and delivery of educational “props” for each program,
and
|
|
·
|
regular
communication to assess and evaluate planning process and program
execution.
|
<30
participants:
|
$35/person
|
|
31-74
participants:
|
$33/person
|
|
>75
participants:
|
$30/person
|
<5
Client attendees:
|
No
Charge
|
|
>5
Client attendees:
|
$150
flat rate
|
SUMMARY
COMPENSATION TABLE
|
|||||||||
Name
and principal position
(a)
|
Year Ended
January
31
(b)
|
Salary
($)
(c)
|
Bonus
($)
(d)
|
Stock
Awards ($)
(e)
|
Option
Awards ($)
(f)
|
Non-Equity
Incentive Plan Compensation ($)
(g)
|
Nonqualified
Deferred Compensation Earnings ($)
(h)
|
All
Other Compensation* ($)
(i)
|
Total
($)(1)
(j)
|
MaryAnne
McAdams
|
2008
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
CEO,
President, Secretary, Treasurer
|
2007
|
-
|
-
|
-
|
-
|
-
|
-
|
$500(2)
|
$500
|
and
Director
|
2006
|
$4,750(2)
|
-
|
-
|
-
|
-
|
-
|
$6,000(2)
|
$10,750
|
Shareholder
|
Date
Shares Acquired
|
Common
Stock Beneficially Owned Before Resale
|
Amount
Offered (Assuming all shares immediately sold)
|
Shares
Beneficially Owned After Resale (2)
|
Akard,
John*
|
June
2008
|
2,000
|
2,000
|
--
|
Atkinson,
D. Ross & Carol Jo*
|
June
2008
|
5,000
|
5,000
|
|
Babajanov,
Dan*
|
June
2008
|
5,000
|
5,000
|
--
|
Birmingham,
Carey*
|
May
2008
|
5,000
|
5,000
|
--
|
Brousseau,
Robert*
|
June
2008
|
5,000
|
5,000
|
--
|
Butler,
Charlie*
|
June
2008
|
5,000
|
5,000
|
--
|
Cvijanovich,
Mike*
|
June
2008
|
5,000
|
5,000
|
--
|
Frank,
John*
|
June
2008
|
5,000
|
5,000
|
--
|
Granzyk,
Steve*
|
June
2008
|
5,000
|
5,000
|
--
|
Heck,
Thomas*
|
June
2008
|
5,000
|
5,000
|
--
|
Hedayati,
Pejman*
|
June
2008
|
10,000
|
10,000
|
--
|
Hedavati,
Poya*
|
June
2008
|
10,000
|
10,000
|
|
High,
Trae*
|
June
2008
|
5,000
|
5,000
|
--
|
Inestroza,
Gregory*
|
June
2008
|
30,000
|
30,000
|
--
|
Jacobs,
Lawrence*
|
June
2008
|
5,000
|
5,000
|
--
|
Loev,
Jennifer*(1)
|
June
2008
|
5,000
|
5,000
|
--
|
McAdams,
James*(2)
|
June
2008
|
5,000
|
5,000
|
|
McAdams,
Joe*(3)
|
May
2008
|
5,000
|
5,000
|
--
|
McAdams,
Marcia*(4)
|
June
2008
|
3,000
|
3,000
|
--
|
Monroe,
Manuela*
|
May
2008
|
5,000
|
5,000
|
--
|
Morgan,
Patricia*(5)
|
June
2008
|
5,000
|
5,000
|
--
|
Moscato,
Christopher*
|
June
2008
|
10,000
|
10,000
|
--
|
Moscato,
Robert*
|
June
2008
|
10,000
|
10,000
|
--
|
Neal,
Steven
|
June
2008
|
2,000
|
2,000
|
--
|
O’Brien,
James*
|
June
2008
|
5,000
|
5,000
|
--
|
Pettengill,
Michele*
|
June
2008
|
3,000
|
3,000
|
--
|
Race,
Damon*
|
June
2008
|
5,000
|
5,000
|
--
|
Schwartz,
Bill*
|
May
2008
|
5,000
|
5,000
|
--
|
Smith,
Ernest*
|
May
2008
|
20,000
|
20,000
|
--
|
Smith,
Geraldine*
|
June
2008
|
7,500
|
7,500
|
--
|
Stone,
Selma*
|
May
2008
|
5,000
|
5,000
|
--
|
Tudor,
Derek and Sue*
|
June
2008
|
10,000
|
10,000
|
--
|
Weiss,
Steven*
|
June
2008
|
10,000
|
10,000
|
--
|
Yount,
Harold, Jr.*
|
June
2008
|
5,000
|
5,000
|
|
TOTALS
|
232,500
|
232,500
|
0
|
o
|
ordinary
brokerage transactions and transactions in which the broker-dealer
solicits the purchaser;
|
o
|
block
trades in which the broker-dealer will attempt to sell the shares as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
o
|
purchases
by a broker-dealer as principal and resale by the broker-dealer for its
account;
|
o
|
an
exchange distribution in accordance with the rules of the applicable
exchange;
|
o
|
privately-negotiated
transactions;
|
o
|
broker-dealers
may agree with the Selling Security Holders to sell a specified number of
such shares at a stipulated price per share;
|
o
|
a
combination of any such methods of sale; and
|
o
|
any
other method permitted pursuant to applicable
law.
|
Unaudited
Financial Statements:
|
Page
|
Balance
Sheet as of April 30, 2008
|
F-1
|
|
Statements
of Operations for the three months ended April 30, 2008 and 2007 and the
period from December 30, 2004 (inception) to April 30,
2008
|
F-2
|
|
Statements
of Cash Flows for the three months ended April 30, 2008 and 2007 and the
period from December 30, 2004 (inception) to April 30,
2008
|
F-3
|
|
Notes
to Financial Statements
|
F-4
|
Report
of Independent Registered Accounting Firm
|
F-5
|
|
Balance
Sheet as of January 31, 2008
|
F-6
|
|
Statements
of Operations for the years ended January 31, 2008 and 2007 and the period
from December 30, 2004 (inception) to January 31, 2008
|
F-7
|
|
Statements
of Stockholders’ Equity (Deficit) for the period from December 30, 2004
(inception) to January 31, 2008
|
F-8
|
|
Statements
of Cash Flows for the years ended January 31, 2008 and 2007 and the period
from December 30, 2004 (inception) to January 31, 2008
|
F-9
|
|
Notes
to Financial Statements
|
F-10
|
RX
Scripted, Inc.
|
||||||||||||
(Formerly
RX Scripted, LLC)
|
||||||||||||
(
A Development Stage Company)
|
||||||||||||
Statements
of Operations
|
||||||||||||
For
the Three Months Ended April 30, 2008, April 30, 2007,
|
||||||||||||
and
the Period from December 30, 2004 (Inception) to April 30,
2008
|
||||||||||||
(Unaudited)
|
||||||||||||
Three
Months Ended April 30,
|
December
30, 2004 (Inception) to April 30,
|
|||||||||||
2008
|
2007
|
2008
|
||||||||||
REVENUES
|
||||||||||||
Services
|
$ | - | $ | - | $ | 29,517 | ||||||
EXPENSES
|
||||||||||||
Selling,
general and administrative
|
9,569 | 1,957 | 53,836 | |||||||||
LOSS
FROM OPERATIONS
|
(9,569 | ) | (1,957 | ) | (24,319 | ) | ||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||
Interest
expense
|
(668 | ) | - | (1,695 | ) | |||||||
NET
LOSS
|
$ | (10,237 | ) | $ | (1,957 | ) | $ | (26,014 | ) | |||
LOSS
PER SHARE
|
$ | (0.00 | ) | $ | (0.00 | ) | ||||||
WEIGHTED
AVERAGE NUMER OF SHARES OUTSTANDING
|
3,000,000 | 1,000,000 |
1.
|
Basis
of Presentation
|
|
The
accompanying unaudited interim financial statements of RX Scripted, LLC
have been prepared in accordance with accounting principles generally
accepted in the United States of America and the rules of the Securities
and Exchange Commission and should be read in conjunction with the audited
financial statements and notes thereto contained elsewhere in this
prospectus. In the opinion of management, all adjustments,
consisting of normal recurring adjustments, necessary for a fair
presentation of financial position and the results of operations for the
interim periods presented have been reflected herein. The
results of operations for interim periods are not necessarily indicative
of the results to be expected for the full year. Notes to the
financial statements that would substantially duplicate the disclosure
contained in the audited financial statements for the most recent fiscal
year as reported elsewhere in this prospectus have been
omitted.
|
Accounting
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 amounts reported in the financial statements and the accompanying
notes. The actual results could differ from those
estimates.
|
|
2.
|
Going-Concern
|
RX
Scripted’s financial statements are prepared using United States generally
accepted accounting principles applicable to a going concern which
contemplates the realization of assets and liquidation of liabilities in
the normal course of business. RX Scripted has incurred
cumulative operating losses through April 30, 2008 of $26,014 and has a
working capital deficit at April 30, 2008 of $23,014.
|
|
Revenues
have not been sufficient to cover its operating costs and to allow it to
continue as a going concern. The potential proceeds from the
sale of common stock and other contemplated debt and equity financing, and
increases in operating revenues from new development and business
acquisitions would enable RX Scripted to continue as a going
concern. There can be no assurance that RX Scripted can or will
be able to complete any debt or equity financing. RX Scripted’s
financial statements do no include any adjustments that might result form
the outcome of this uncertainty.
|
|
3.
|
Debt – Related
Parties
|
RX
Scripted’s advances of $2,950 from a shareholder due not bear
interest.
|
|
RX
Scripted’s short-term debt of $14,500 was borrowed from a relative of the
sole Director in 2007. The advances bear interest at 4% per annum and the
loan matures on December 31, 2008. There have been no
repayments since inception.
|
|
RX
Scripted issued a convertible promissory note for $30,000 effective
September 18, 2007 for legal work to be performed. The attorney
from the law firm is a significant shareholder of RX
Scripted. The note bears interest at 7% per annum and matures
on October 31, 2008. Any past due amounts bear interest at 15%
per annum. If not paid in full by October 31, 2008, the note
and any unpaid and accrued interest is convertible at the option of the
noteholder into common shares of RX Scripted at a conversion price of
$0.10 per share.
|
|
4.
|
Subsequent
Events
|
From
May 1, 2008 to July 15, 2008, the Company sold a total of 232,500 shares
of common stock for an aggregate of $23,250 to certain investors through a
Private Placement Memorandum
offering.
|
Year
Ended January 31,
|
Inception
Through January 31,
|
|||||||||||
2008
|
2007
|
2008
|
||||||||||
REVENUES
|
||||||||||||
Services
|
$ | – | $ | 5,705 | $ | 29,517 | ||||||
EXPENSES
|
||||||||||||
Selling,
general and administrative
|
12,854 | 7,475 | 44,267 | |||||||||
LOSS
FROM OPERATIONS
|
(12,854 | ) | (1,770 | ) | (14,750 | ) | ||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||
Interest
expense
|
(897 | ) | (130 | ) | (1,027 | ) | ||||||
NET
LOSS
|
$ | (13,751 | ) | $ | (1,900 | ) | $ | (15,777 | ) | |||
LOSS
PER SHARE
|
$ | (0.01 | ) | $ | (0.00 | ) | ||||||
WEIGHTED
AVERAGE NUMBER OF SHARES OUTSTANDING
|
1,734,247 | 1,500,000 |
Member’s
|
Common
Stock
|
Additional
Paid-in
|
Deficit
Accumulated During Development
|
|||||||||||||||||||||
Equity
|
Shares
|
Amount
|
Capital
|
Stage
|
Total
|
|||||||||||||||||||
Member
contribution
|
$ | 500 | $ | 500 | ||||||||||||||||||||
Net
loss
|
(110 | ) | (110 | ) | ||||||||||||||||||||
Balance
at January 31, 2005
|
390 | – | $ | – | $ | – | $ | – | 390 | |||||||||||||||
Member
contribution
|
500 | 500 | ||||||||||||||||||||||
Net
loss
|
(16 | ) | (16 | ) | ||||||||||||||||||||
Balance
at January 31, 2006
|
874 | – | – | – | – | 874 | ||||||||||||||||||
Net
loss
|
(1,900 | ) | (1,900 | ) | ||||||||||||||||||||
Balance
at January 31, 2007
|
(1,026 | ) | – | – | – | – | (1,026 | ) | ||||||||||||||||
Recapitalization
|
1,026 | 1,500,000 | 1,500 | (2,026 | ) | 500 | ||||||||||||||||||
Shares
issued for services
|
1,500,000 | 1,500 | 1,500 | |||||||||||||||||||||
Net
loss
|
(13,751 | ) | (13,751 | ) | ||||||||||||||||||||
Balance
at January 31, 2008
|
$ | – | 3,000,000 | $ | 3,000 | $ | – | $ | (15,777 | ) | $ | (12,777 | ) |
1.
|
Organization and
Significant Accounting Policies
|
|
Organization
– RX Scripted, LLC was formed on December 30, 2004 as a North Carolina
limited liability company and converted to a Delaware C Corporation as RX
Scripted, Inc. on December 5, 2007. RX Scripted is an event
planning consulting company which plans and executes medical meetings and
educational programs for nurses, physicians, pharmacists and other health
care professionals. RX Scripted offers a variety of event
planning services based on its customers’ individual program
needs.
|
|
Basis
of Presentation
– The financial
statements have been prepared in accordance with accounting principles
generally accepted in the United States of America. In the
opinion of management, all adjustments, consisting of normal recurring
adjustments, necessary for a fair presentation of financial position and
the results of operations for the interim periods presented have been
reflected herein.
|
|
|
Accounting
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 amounts reported in the financial statements and the accompanying
notes. The actual results could differ from those
estimates.
|
|
Cash
and Cash Equivalents
– RX Scripted considers all highly liquid
investments with original maturities of three months or less from time of
purchase to be cash equivalents.
|
|
Income
Taxes
– Income taxes are accounted for under the liability
method. Deferred tax assets and liabilities are recognized when
items of income and expense are recognized in the financial statements in
different periods than when recognized in the tax
return. Deferred tax assets arise when expenses are recognized
in the financial statements before the tax returns or when income items
are recognized in the tax return prior to the financial
statements. Deferred tax assets also arise when operating
losses or tax credits are available to offset tax payments due in future
years. Deferred tax liabilities arise when income items are
recognized in the financial statements before the tax returns or when
expenses are recognized in the tax return prior to the financial
statements. 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.
|
|
Fair
Value of Financial Instruments
– The following methods and
assumptions were used to estimate the fair values for each class of
financial instruments. The fair value of a financial instrument
is the amount at which the instrument could be exchanged in a current
transaction between two willing parties. The carrying amounts
of cash, cash equivalents, accounts receivable, accounts payable
approximate fair value due to the short-term nature or maturity of the
instruments.
|
|
Earnings
Per Share
– Basic Earnings
per share equals net earnings divided be weighted average shares
outstanding during the year. Diluted earnings per share include
the impact on dilution from all contingently issuable shares, including
options, warrants and convertible securities. As of January 31, 2008 RX
Scripted did not have any outstanding contingently issuable
shares.
|
|
Revenue
Recognition
– Revenue from contracts for consulting services
with fees based on time and materials or cost-plus are recognized as the
services are performed and amounts are earned in accordance with the
Securities Exchange Commission (the “SEC”) Staff Accounting Bulletin
(“SAB”) No. 101, “
Revenue Recognition in
Financial Statements
”, as amended by SAB No. 104
“Revenue Recognition”.
The Company considers amounts to be earned once evidence of an arrangement
has been obtained, services are delivered, fees are fixed or determinable,
and collectability is reasonably assured. For contracts with fixed fees,
the Company recognizes revenues as amounts become billable
in
accordance with contract terms, provided the billable amounts are not
contingent, are consistent with the services delivered, and are
earned.
|
Recently
Issued Accounting Pronouncements
– RX Scripted does not expect the
adoption of recently issued accounting pronouncements to have a
significant impact on RX Scripted’s results of operations, financial
position or cash flows.
|
|
2.
|
Going-Concern
|
RX
Scripted's financial statements are prepared using United States generally
accepted accounting principles applicable to a going concern which
contemplates the realization of assets and liquidation of liabilities in
the normal course of business. RX Scripted has incurred
cumulative operating losses through January 31, 2008 of $15,777 and has a
working capital deficit at January 31, 2008 of
$12,777.
|
|
Revenues
have not been sufficient to cover its operating costs and to allow it to
continue as a going concern. The potential proceeds from the
sale of common stock and other contemplated debt and equity financing, and
increases in operating revenues from new development and business
acquisitions would enable RX Scripted to continue as a going
concern. There can be no assurance that RX Scripted can or will
be able to complete any debt or equity financing. RX Scripted's
financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
|
|
3.
|
Debt – Related
Parties
|
RX
Scripted’s advances of $2,950 from a shareholder do not bear
interest.
|
|
RX
Scripted’s short-term debt of $14,500 was borrowed from a relative of the
sole director in October 2007. The advances bear interest at 4%
per annum and the loan matures on December 31, 2008. There
have been no repayments since inception.
|
|
RX
Scripted issued a convertible promissory note for $30,000 effective
September 18, 2007 for legal work to be performed. The attorney
from the law firm is a significant shareholder of RX
Scripted. The note bears interest at 7% per annum and matures
on October 31, 2008. Any past due amounts bear interest at 15%
per annum. If not paid in full by October 31, 2008, the note
and any unpaid and accrued interest is convertible at the option of the
noteholder into common shares of RX Scripted at a conversion price of
$0.10 per share.
|
|
4.
|
Commitments and
Contingencies
|
RX
Scripted may from time to time be involved with various litigation and
claims that arise in the normal course of business. As of
January 31, 2008, no such matters were outstanding.
|
|
5.
|
Equity
|
The
member of the limited liability company contributed $500 in January 2005
and an additional $500 in January 2006.
|
|
|
All
per share disclosures have been restated to reflect the recapitalization
that occurred on December 5, 2007. In connection with the
recapitalization, the value of the 1,500,000 common shares issued exceeded
the amounts previously contributed by $500. This amount was
recorded as compensation expense.
|
6.
|
Income
Taxes
|
RX
Scripted has incurred losses since inception. Therefore, RX
Scripted has no tax liability. Additionally, there are
limitations imposed by certain transactions which are deemed to be
ownership changes. The net deferred tax asset generated by the
loss carryforward has been fully reserved. The cumulative net
operating loss carryforward is about $15,000 at January 31, 2008 and will
expire in fiscal years 2025 through 2028. At January 31, 2008,
the deferred tax asset consisted of the
following:
|
Deferred
tax asset:
|
Net
operating losses
|
$ | 2,300 | |||
Less
valuation allowance
|
(2,300 | ) | |||
Net
deferred tax asset
|
$ | – |
The
change in the valuation allowance for the years ended January 31, 2008 and
2007 was $13,000 and $1,900,
respectively.
|
Description
|
Amount to be
Paid
|
|||
Filing
Fee - Securities and Exchange Commission
|
$
|
0.93
|
||
Attorney's
fees and expenses
|
20,000.00
|
*
|
||
Accountant's
fees and expenses
|
15,000.00
|
*
|
||
Transfer
agent's and registrar fees and expenses
|
5,000.00
|
*
|
||
Printing
and engraving expenses
|
1,000.00
|
*
|
||
Miscellaneous
expenses
|
1,000.00
|
*
|
||
Total
|
$
|
42,000.93
|
*
|
Exhibit
Number
|
Description of
Exhibit
|
Exhibit
3.1*
|
Articles
of Incorporation
|
Exhibit
3.2*
|
Bylaws
|
Exhibit
5.1(1)
|
Opinion
and consent of The Loev Law Firm, PC re: the legality of the shares being
registered
|
Exhibit
10.1*
|
Revolving
Credit Promissory Note with Kevin McAdams (December 12,
2007)
|
Exhibit
10.2*
|
Convertible
Promissory Note with David M. Loev (March 11, 2008)
|
Exhibit
23.1*
|
Consent
of GBH CPAs, PC
|
Exhibit
23.2(1)
|
Consent
of The Loev Law Firm, PC (included in Exhibit
5.1)
|
1.
|
To
file, during any period in which offers or sales are being made, a post
effective amendment to this Registration
Statement:
|
(a)
|
To
include any prospectus required by Section 10(a)(3) of the Securities
Act;
|
|
|
||
(b)
|
To
reflect in the prospectus any facts or events which, individually or
together, represent a fundamental change in the information in the
registration statement. Notwithstanding the foregoing, any increase or
decrease in volume of securities offered (if the total dollar 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 the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in the volume
and rise represent no more than a 20% change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in
the effective registration statement; and
|
|
|
||
(c)
|
To
include any material information with respect to the plan of distribution
not previously disclosed in this Registration Statement or any material
changes to such information in the Registration
Statement.
|
2.
|
For
determining liability under the Securities Act, treat 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.
|
To
file a post-effective amendment to remove from registration any of the
securities that remain unsold at the end of the
offering.
|
4.
|
For
determining liability of the undersigned registrant under the Securities
Act 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:
|
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.
|
|
5.
|
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 Securities Act and is, therefore, unenforceable. In the event that
a claim for indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a director,
officer of controlling person of the Registrant in the successful defense
of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered,
the Registrant 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 whether such indemnification by it is against
public policy as expressed in the Securities Act and will be governed by
the final adjudication of such
issue.
|
6.
|
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 a 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.
|
|
7.
|
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.
|
|
8.
|
That,
for the purpose of determining liability under the Securities Act to any
purchaser:
|
|
a).
If the registrant is relying on Rule
430B:
|
1.
|
Each
prospectus filed by the undersigned 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
|
|
2.
|
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)(i), (vii), or (x)
for the purpose of providing the information required by section 10(a) of
the Securities Act 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
|
b). 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 than 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.
|
Exhibit
Number
|
Description of
Exhibit
|
Exhibit
3.1*
|
Articles
of Incorporation
|
Exhibit
3.2*
|
Bylaws
|
Exhibit
5.1(1)
|
Opinion
and consent of The Loev Law Firm, PC re: the legality of the shares being
registered
|
Exhibit
10.1*
|
Revolving
Credit Promissory Note with Kevin McAdams (December 12,
2007)
|
Exhibit
10.2*
|
Convertible
Promissory Note with David M. Loev (March 11, 2008)
|
Exhibit
23.1*
|
Consent
of GBH CPAs, PC
|
Exhibit
23.2(1)
|
Consent
of The Loev Law Firm, PC (included in Exhibit
5.1)
|
Articles of
Incorporation
(PURSUANT
TO NRS 78)
|
1.
Name of
Corporation:
|
RX SCRIPTED,
INC.
|
|
2.
Resident Agent Name and Street Address:
(must
be a Nevada address where process may be
served)
|
Incorp
Services, Inc.
|
|
Name
|
||
375
N Stephanie St. Ste. 1411
|
Henderson,
Nevada 89074-8909
|
|
Street
Address
|
City
Zip Code
|
|
Optional
Mailing Address City State Zip Code
|
||
3.
Shares:
(number
of shares corporation authorized to issue
|
Number of shares with par
value:
110,000,000
Par Value Per Share:
$0.001
Number
of shares without par value:
|
|
4.
Names & Addresses,
of Board of Directors/Trustees:
(attach
additional page there is more than 3 directors/trustees)
|
MaryAnne
McAdams
|
|
Name
|
||
201
Creekvista Drive
|
Holly
Springs, North Carolina 27540
|
|
Street
Address City
State Zip Code
|
||
Name
|
||
Street
Address City State Zip Code
|
||
Name
|
||
Street
Address City State Zip Code
|
||
5.
Purpose:
optional-see
instructions)
|
The
purpose of this Corporation shall be:
|
|
6.
Names, Address and
Signature of Incorporator.
(attach
additional page there is more than 1
|
||
MaryAnne
McAdams
|
||
Name
Signature
/S/ MaryAnne McAdams
|
||
201
Creekvista Drive
|
Holly
Springs, North Carolina 27540
|
|
Address
City State Zip Code
|
||
7.
Certificate of Acceptance of Appointment of Resident
Agent:
|
I
hereby accept appointment as Resident Agent for the above named
corporation.
|
|
Authorized
Signature of R. A. or On Behalf of R. A. Company
Date
|
Name
|
Address
|
MaryAnne
McAdams
|
201
Creekvista Drive
Holly
Springs, North Carolina 27540
|
Name
|
Address
|
MaryAnne
McAdams
|
201
Creekvista Drive
Holly
Springs, North Carolina 27540
|
RX
SCRIPTED, INC.
|
|
By:
/s/ MaryAnne
McAdams
|
|
MaryAnne
McAdams,
|
|
Incorporator
|
1.1
|
Definitions
.
Unless
the context clearly requires otherwise, in these
Bylaws:
|
|
(a)
|
"
Board
" means the board
of directors of the Company.
|
|
(b)
|
"
Bylaws
" means these
bylaws as adopted by the Board and includes amendments subsequently
adopted by the Board or by the Stockholders.
|
|
(c)
|
"
Articles of
Incorporation
" means the Articles of Incorporation of Rx Scripted,
Inc., as filed with the Secretary of State of the State of Nevada and
includes all amendments thereto and restatements thereof subsequently
filed.
|
|
(d)
|
"
Company
" means Rx
Scripted, Inc., a Nevada corporation.
|
|
(e)
|
"
Section
" refers to
sections of these Bylaws.
|
|
(f)
|
"
Stockholder
" means
stockholders of record of the Company.
|
|
1.2
|
Offices
.
The
title of an office refers to the person or persons who at any given time
perform the duties of that particular office for the
Company.
|
|
ARTICLE
2.
|
||
OFFICES
|
||
2.1
|
Principal
Office
.
The Company may locate its principal
office within or without the state of incorporation as the Board may
determine.
|
|
2.2
|
Registered
Office
.
The registered office of the Company
required by law to be maintained in the state of incorporation may be, but
need not be, the same as the principal place of business of the
Company. The Board may change the address of the registered
office from time to time.
|
|
2.3
|
Other
Offices
.
The Company may have offices at such
other places, either within or without the state of incorporation, as the
Board may designate or as the business of the Company may require from
time to time.
|
3.1
|
Annual
Meetings
.
The Stockholders of the Company
shall hold their annual meetings for the purpose of electing directors and
for the transaction of such other proper business as may come before such
meetings at such time, date and place as the Board shall determine by
resolution.
|
3.2
|
Special
Meetings
.
The Board, the Chairman of the Board,
the President or a committee of the Board duly designated and whose powers
and authority include the power to call meetings may call special meetings
of the Stockholders of the Company at any time for any purpose or
purposes. Special meetings of the Stockholders of the Company
may also be called by the holders of at least 30% of all shares entitled
to vote at the proposed special meeting.
|
3.3
|
Place of
Meetings
.
The Stockholders shall hold all
meetings at such places, within or without the State of Nevada, as the
Board or a committee of the Board shall specify in the notice or waiver of
notice for such meetings.
|
3.4
|
Notice of
Meetings
.
Except as otherwise required by law,
the Board or a committee of the Board shall give notice of each meeting of
Stockholders, whether annual or special, not less than 10 nor more than 50
days before the date of the meeting. The Board or a committee
of the Board shall deliver a notice to each Stockholder entitled to vote
at such meeting by delivering a typewritten or printed notice thereof to
him personally, or by depositing such notice in the United States mail, in
a postage prepaid envelope, directed to him at his address as it appears
on the records of the Company, or by transmitting a notice thereof to him
at such address by telegraph, telecopy, cable or wireless. If
mailed, notice is given on the date deposited in the United States mail,
postage prepaid, directed to the Stockholder at his address as it appears
on the records of the Company. An affidavit of the Secretary or
an Assistant Secretary or of the Transfer Agent of the Company that he has
given notice shall constitute, in the absence of fraud, prima facie
evidence of the facts stated
therein.
|
3.5
|
Stockholder
Notice
.
Subject to the Articles of Incorporation,
the Stockholders who intend to nominate persons to the Board of Directors
or propose any other action at an annual meeting of Stockholders must
timely notify the Secretary of the Company of such intent. To
be timely, a Stockholder's notice must be delivered to or mailed and
received at the principal executive offices of the Company not less than
50 days nor more than 90 days prior to the date of such meeting; provided,
however, that in the event that
|
less
than 75 days' notice of the date of the meeting is given or made to
Stockholders, notice by the Stockholder to be timely must be received not
later than the close of business on the 15th day following the date on
which such notice of the date of the annual meeting was
mailed. Such notice must be in writing and must include a (i) a
brief description of the business desired to the brought before the annual
meeting and the reasons for conducting such business at the meeting; (ii)
the name and record address of the Stockholder proposing such business;
(iii) the class, series and number of shares of capital stock of the
Company which are beneficially owned by the Stockholder; and (iv) any
material interest of the Stockholder in such business. The
Board of Directors reserves the right to refuse to submit any such
proposal to stockholders at an annual meeting if, in its judgment, the
information provided in the notice is inaccurate or
incomplete.
|
3.6
|
Waiver of
Notice
.
Whenever these Bylaws require written
notice, a written waiver thereof, signed by the person entitled to notice,
whether before or after the time stated therein, shall constitute the
equivalent of notice. Attendance of a person at any meeting
shall constitute a waiver of notice of such meeting, except when the
person attends the meeting for the express purpose of objecting, at the
beginning of the meeting, to the transaction of any business because the
meeting is not lawfully called or convened. No written waiver
of notice need specify either the business to be transacted at, or the
purpose or purposes of any regular or special meeting of the Stockholders,
directors or members of a committee of the Board.
|
3.7
|
Adjournment of
Meeting
.
When the Stockholders adjourn a meeting
to another time or place, notice need not be given of the adjourned
meeting if the time and place thereof are announced at the meeting at
which the adjournment is taken. At the adjourned meeting, the
Stockholders may transact any business which they may have transacted at
the original meeting. If the adjournment is for more than 30
days or, if after the adjournment, the Board or a committee of the Board
fixes a new record date for the adjourned meeting, the Board or a
committee of the Board shall give notice of the adjourned meeting to each
Stockholder of record entitled to vote at the meeting.
|
3.8
|
Quorum
.
Except
as otherwise required by law, the holders of a majority of all of the
shares of the stock entitled to vote at the meeting, present in person or
by proxy, shall constitute a quorum for all purposes at any meeting of the
Stockholders. In the absence of a quorum at any meeting or any
adjournment thereof, the holders of a majority of the shares of stock
entitled to vote who are present, in person or by proxy, or, in the
absence therefrom of all the Stockholders, any officer entitled to preside
at, or to act as secretary of, such meeting may adjourn such meeting to
another place, date or time.
|
3.9
|
Organization
.
Such
person as the Board may have designated or, in the absence of such a
person, the highest ranking officer of the Company who is present shall
call to order any meeting of the Stockholders, determine the presence of a
quorum, and act as chairman of the meeting. In the absence of
the Secretary or an Assistant Secretary of the Company, the chairman shall
appoint someone to act as the secretary of the meeting.
|
3.10
|
Conduct of
Business
.
The chairman of any meeting of
Stockholders shall determine the order of business and the procedure at
the meeting, including such regulations of the manner of voting and the
conduct of discussion as he deems in order.
|
3.11
|
List of
Stockholders
.
At least 10 days before every
meeting of Stockholders, the Secretary shall prepare a list of the
Stockholders entitled to vote at the meeting or any adjournment thereof,
arranged in alphabetical order, showing the address of each Stockholder
and the number of shares registered in the name of each
Stockholder. The Company shall make the list available for
examination by any Stockholder for any purpose germane to the meeting,
during ordinary business hours, for a period of at least 10 days prior to
the meeting, either at a place within the city where the meeting will take
place or at the place designated in the notice of the
meeting.
|
3.12
|
Fixing of Record
Date
.
For the purpose of determining Stockholders
entitled to notice of or to vote at any meeting of Stockholders or any
adjournment thereof, or Stockholders entitled to receive payment of any
dividend, or in order to make a determination of Stockholders for any
other proper purpose, the Board or a committee of the Board may fix in
advance a date as the record date for any such determination of
Stockholders. However, the Board shall not fix such date, in
any case, more than 60 days nor less than 10 days prior to the date of the
particular action.
|
3.13
|
Voting of
Shares
.
Each Stockholder shall have one vote for
every share of stock having voting rights registered in his name on the
record date for the meeting. The Company shall not have the
right to vote treasury stock of the Company, nor shall another corporation
have the right to vote its stock of the Company if the Company holds,
directly or indirectly, a majority of the shares entitled to vote in the
election of directors of such other corporation. Persons
holding stock of the Company in a fiduciary capacity shall have the right
to vote such stock. Persons who have pledged their stock of the
Company shall have the right to vote such stock unless in the transfer on
the books of the Company the pledgor expressly empowered the pledgee to
vote such stock. In that event, only the pledgee, or his proxy,
may represent such stock and vote
thereon.
|
3.14
|
Inspectors
.
At
any meeting in which the Stockholders vote by ballot, the chairman may
appoint one or more inspectors. Each inspector shall take and
sign an oath to execute the duties of inspector at such meeting
faithfully, with strict impartiality, and according to the best of his
ability. The inspectors shall ascertain the number of shares
outstanding and the voting power of each; determine the shares represented
at a meeting and the validity of proxies and ballots; count all votes and
ballots; determine and retain for a reasonable period a record of the
disposition of any challenges made to any determination by the inspectors;
and certify their determination of the number of shares represented at the
meeting, and their count of all votes and ballots. The
certification required herein shall take the form of a subscribed, written
report prepared by the inspectors and delivered to the Secretary of the
Company. An inspector need not be a Stockholder of the Company,
and any officer of the Company may be an inspector on any question other
than a vote for or against a proposal in which he has a material
interest.
|
3.15
|
Proxies
. A Stockholder may
exercise any voting rights in person or by his proxy appointed by an
instrument in writing, which he or his authorized attorney-in-fact has
subscribed and which the proxy has delivered to the Secretary of the
meeting pursuant to the manner prescribed by
law.
|
3.16
|
Action by
Consent
.
Any action required to be taken at any
annual or special meeting of stockholders of the Company or any action
which may be taken at any annual or special meeting of such stockholders,
may be taken without a meeting, without prior notice and without a vote,
if a consent or consents in writing setting forth the action so taken,
shall be signed by the holders of outstanding stock having not less than
the minimum number of votes that would be necessary to authorize or take
such action at a meeting at which all shares entitled to vote thereon were
present and voted and shall be delivered to the Company by delivery to its
registered office, its principal place of business, or an officer or agent
of the Company having custody of the book in which proceedings of meetings
of stockholders are recorded. Delivery made to the Company's
registered office shall be by hand or by certified or registered mail,
return receipt requested.
|
4.1
|
General
Powers
.
The Board shall manage the property,
business and affairs of the Company.
|
4.2
|
Number
.
The
number of directors who shall constitute the Board shall equal not less
than 1 nor more than 10, as the Board or majority stockholders may
determine by resolution from time to time.
|
4.3
|
Election of Directors
and Term of Office
.
The Stockholders of the
Company shall elect the directors at the annual or adjourned annual
meeting (except as otherwise provided herein for the filling of
vacancies). Each director shall hold office until his death,
resignation, retirement, removal, or disqualification, or until his
successor shall have been elected and qualified.
|
4.4
|
Resignations
.
Any director of the Company may resign at any time by giving written
notice to the Board or to the Secretary of the Company. Any
resignation shall take effect upon receipt or at the time specified in the
notice. Unless the notice specifies otherwise, the
effectiveness of the resignation shall not depend upon its
acceptance.
|
4.5
|
Removal
.
Stockholders holding 2/3 of the outstanding shares entitled to vote at an
election of directors may remove any director or the entire Board of
Directors at any time, with or without cause.
|
4.6
|
Vacancies
.
Any vacancy on the Board, whether because of death, resignation,
disqualification, an increase in the number of directors, or any other
cause may be filled by a majority of the remaining directors, a sole
remaining director, or the majority stockholders. Any director
elected to fill a vacancy shall hold office until his death, resignation,
retirement, removal, or disqualification, or until his successor shall
have been elected and qualified.
|
4.7
|
Chairman of the
Board
.
At the initial and annual meeting of the
Board, the directors may elect from their number a Chairman of the Board
of Directors. The Chairman shall preside at all meetings of the
Board and shall perform such other duties as the Board may
direct. The Board also may elect a Vice Chairman and other
officers of the Board, with such powers and duties as the Board may
designate from time to time.
|
4.8
|
Compensation
.
The Board may compensate directors for their services and may provide for
the payment of all expenses the directors incur by attending meetings of
the Board or otherwise.
|
ARTICLE
5.
|
|
MEETINGS
OF DIRECTORS
|
5.1
|
Regular
Meetings
.
The Board may hold regular meetings at
such places, dates and times as the Board shall establish by
resolution. If any day fixed for a meeting falls on a legal
holiday, the Board shall hold the meeting at the same place and time on
the next succeeding business day. The Board need not give
notice of regular meetings.
|
5.2
|
Place of
Meetings
.
The Board may hold any of its meetings
in or out of the State of Nevada, at such places as the Board may
designate, at such places as the notice or waiver of notice of any such
meeting may designate, or at such places as the persons calling the
meeting may designate.
|
5.3
|
Meetings by
Telecommunications
.
The Board or any committee of
the Board may hold meetings by means of conference telephone or similar
telecommunications equipment that enable all persons participating in the
meeting to hear each other. Such participation shall constitute
presence in person at such meeting.
|
5.4
|
Special
Meetings
.
The Chairman of the Board, the
President, or one-half of the directors then in office may call a special
meeting of the Board. The person or persons authorized to call
special meetings of the Board may fix any place, either in or out of the
State of Nevada as the place for the meeting.
|
5.5
|
Notice of Special
Meetings
.
The person or persons calling a special meeting of
the Board shall give written notice to each director of the time, place,
date and purpose of the meeting of not less than three business days if by
mail and not less than 24 hours if by telegraph or in person before the
date of the meeting. If mailed, notice is given on the date
deposited in the United States mail, postage prepaid, to such
director. A director may waive notice of any special meeting,
and any meeting shall constitute a legal meeting without notice if all the
directors are present or if those not present sign either before or after
the meeting a written waiver of notice, a consent to such meeting, or an
approval of the minutes of the meeting. A notice or waiver of
notice need not specify the purposes of the meeting or the business which
the Board will transact at the meeting.
|
5.6
|
Waiver by
Presence
.
Except when expressly for the purpose
of objecting to the legality of a meeting, a director's presence at a
meeting shall constitute a waiver of notice of such
meeting.
|
5.7
|
Quorum
.
A
majority of the directors then in office shall constitute a quorum for all
purposes at any meeting of the Board. In the absence of a
quorum, a majority of directors present at any meeting may adjourn the
meeting to another place, date or time without further
notice. No proxies shall be given by directors to any person
for purposes of voting or establishing a quorum at a directors’
meetings.
|
5.8
|
Conduct of
Business
.
The Board shall transact business in
such order and manner as the Board may determine. Except as the law
requires otherwise, the Board shall determine all matters by the vote of a
majority of the directors present at a meeting at which a quorum is
present. The directors shall act as a Board, and the individual
directors shall have no power as such.
|
5.9
|
Action by
Consent
.
The Board or a committee of the Board
may take any required or permitted action without a meeting if all members
of the Board or committee consent thereto in writing and file such consent
with the minutes of the proceedings of the Board or
committee.
|
ARTICLE
6.
|
|
COMMITTEES
|
|
6.1
|
Committees of the
Board
.
The Board may designate, by a vote of a
majority of the directors then in office, committees of the
Board. The committees shall serve at the pleasure of the Board
and shall possess such lawfully delegable powers and duties as the Board
may confer.
|
6.2
|
Selection of Committee
Members
.
The Board shall elect by a vote of a
majority of the directors then in office a director or directors to serve
as the member or members of a committee. By the same vote, the
Board may designate other directors as alternate members who may replace
any absent or disqualified member at any meeting of a
committee. In the absence or disqualification of any member of
any committee and any alternate member in his place, the member or members
of the committee present at the meeting and not disqualified from voting,
whether or not he or they constitute a quorum, may appoint by unanimous
vote another member of the Board to act at the meeting in the place of the
absent or disqualified member.
|
6.3
|
Conduct of
Business
.
Each committee may determine the
procedural rules for meeting and conducting its business and shall act in
accordance therewith, except as the law or these Bylaws require
otherwise. Each committee shall make adequate provision for
notice of all meetings to members. A majority of the members of
the committee shall constitute a quorum, unless the committee consists of
one or two members. In that event, one member shall constitute
a quorum. A majority vote of the members present shall
determine all matters. A committee may take action without a
meeting if all the members of the committee consent in writing and file
the consent or consents with the minutes of the proceedings of the
committee.
|
6.4
|
Authority
.
Any
committee, to the extent the Board provides, shall have and may exercise
all the powers and authority of the Board in the management of the
business and affairs of the Company, and may authorize the affixation of
the Company's seal to all instruments which may require or permit
it. However, no committee shall have any power or authority
with regard to amending the Articles of Incorporation, adopting an
agreement of merger or consolidation, recommending to the Stockholders the
sale, lease
or
exchange of all or substantially all of the Company's property and assets,
recommending to the Stockholders a dissolution of the Company or a
revocation of a dissolution of the Company, or amending these Bylaws of
the Company. Unless a resolution of the Board expressly
provides, no committee shall have the power or authority to declare a
dividend, to authorize the issuance of stock, or to adopt a certificate of
ownership and merger.
|
6.5
|
Minutes
.
Each committee shall keep regular minutes of its proceedings and report
the same to the Board when
required.
|
ARTICLE
7.
|
|
OFFICERS
|
|
7.1
|
Officers of the
Company
.
The officers of the Company shall
consist of a President, a Secretary, a Treasurer and such Vice Presidents,
Assistant Secretaries, Assistant Treasurers, and other officers as the
Board may designate and elect from time to time. The same
person may hold at the same time any two or more
offices.
|
7.2
|
Election and
Term
.
The Board shall elect the officers of the
Company. Each officer shall hold office until his death,
resignation, retirement, removal or disqualification, or until his
successor shall have been elected and qualified.
|
7.3
|
Compensation of
Officers
.
The Board shall fix the compensation of
all officers of the Company. No officer shall serve the Company
in any other capacity and receive compensation, unless the Board
authorizes the additional compensation.
|
7.4
|
Removal of Officers
and Agents
.
The Board may remove any officer or
agent it has elected or appointed at any time, with or without
cause.
|
7.5
|
Resignation of
Officers and Agents
.
Any officer or agent the
Board has elected or appointed may resign at any time by giving written
notice to the Board, the Chairman of the Board, the President, or the
Secretary of the Company. Any such resignation shall take
effect at the date of the receipt of such notice or at any later time
specified. Unless otherwise specified in the notice, the Board
need not accept the resignation to make it effective.
|
7.6
|
Bond
.
The
Board may require by resolution any officer, agent, or employee of the
Company to give bond to the Company, with sufficient sureties conditioned
on the faithful performance of the duties of his respective office or
agency. The Board also may require by resolution any officer, agent or
employee to comply with such other conditions as the Board may require
from time to time.
|
7.7
|
President
.
The
President shall be the chief operating officer of the Company and, subject
to the Board's control, shall supervise and direct all of the business and
affairs of the Company. When present, he shall sign (with or
without the Secretary, an Assistant
Secretary,
or any other officer or agent of the Company which the Board has
authorized) deeds, mortgages, bonds, contracts or other instruments which
the Board has authorized an officer or agent of the Company to
execute. However, the President shall not sign any instrument
which the law, these Bylaws, or the Board expressly require some other
officer or agent of the Company to sign and execute. In
general, the President shall perform all duties incident to the office of
President and such other duties as the Board may prescribe from time to
time.
|
7.8
|
Vice
Presidents
.
In the absence of the President or in
the event of his death, inability or refusal to act, the Vice Presidents
in the order of their length of service as Vice Presidents, unless the
Board determines otherwise, shall perform the duties of the
President. When acting as the President, a Vice President shall
have all the powers and restrictions of the Presidency. A Vice
President shall perform such other duties as the President or the Board
may assign to him from time to time.
|
7.9
|
Secretary
.
The
Secretary shall (a) keep the minutes of the meetings of the Stockholders
and of the Board in one or more books for that purpose, (b) give all
notices which these Bylaws or the law requires, (c) serve as custodian of
the records and seal of the Company, (d) affix the seal of the corporation
to all documents which the Board has authorized execution on behalf of the
Company under seal, (e) maintain a register of the address of each
Stockholder of the Company, (f) sign, with the President, a Vice
President, or any other officer or agent of the Company which the Board
has authorized, certificates for shares of the Company, (g) have charge of
the stock transfer books of the Company, and (h) perform all duties which
the President or the Board may assign to him from time to
time.
|
7.10
|
Assistant
Secretaries
.
In the absence of the Secretary or
in the event of his death, inability or refusal to act, the Assistant
Secretaries in the order of their length of service as Assistant
Secretary, unless the Board determines otherwise, shall perform the duties
of the Secretary. When acting as the Secretary, an Assistant
Secretary shall have the powers and restrictions of the
Secretary. An Assistant Secretary shall perform such other
duties as the President, Secretary or Board may assign from time to
time.
|
7.11
|
Treasurer
.
The Treasurer shall (a) have responsibility for all funds and securities
of the Company, (b) receive and give receipts for moneys due and payable
to the corporation from any source whatsoever, (c) deposit all moneys in
the name of the Company in depositories which the Board selects, and (d)
perform all of the duties which the President or the Board may assign to
him from time to time.
|
7.12
|
Assistant
Treasurers
.
In the absence of the Treasurer or in
the event of his death, inability or refusal to act, the Assistant
Treasurers in the order of their length of service as Assistant Treasurer,
unless the Board determines otherwise, shall perform the duties of the
Treasurer. When acting as the Treasurer, an Assistant Treasurer
shall have the powers and restrictions of the Treasurer. An
Assistant Treasurer shall perform such other duties as the Treasurer, the
President, or the Board may assign to him from time to
time.
|
7.13
|
Delegation of
Authority
.
Notwithstanding any provision of these Bylaws to
the contrary, the Board may delegate the powers or duties of any officer
to any other officer or agent.
|
7.14
|
Action with Respect to
Securities of Other Corporations
.
Unless the
Board directs otherwise, the President shall have the power to vote and
otherwise act on behalf of the Company, in person or by proxy, at any
meeting of stockholders of or with respect to any action of stockholders
of any other corporation in which the Company holds
securities. Furthermore, unless the Board directs otherwise,
the President shall exercise any and all rights and powers which the
Company possesses by reason of its ownership of securities in another
corporation.
|
7.15
|
Vacancies
.
The
Board may fill any vacancy in any office because of death, resignation,
removal, disqualification or any other cause in the manner which these
Bylaws prescribe for the regular appointment to such
office.
|
ARTICLE
8.
|
|
CONTRACTS,
LOANS, DRAFTS,
|
|
DEPOSITS
AND ACCOUNTS
|
|
8.1
|
Contracts
.
The
Board may authorize any officer or officers, agent or agents, to enter
into any contract or execute and deliver any instrument in the name and on
behalf of the Company. The Board may make such authorization
general or special.
|
8.2
|
Loans
.
Unless
the Board has authorized such action, no officer or agent of the Company
shall contract for a loan on behalf of the Company or issue any evidence
of indebtedness in the Company's name.
|
8.3
|
Drafts
.
The
President, any Vice President, the Treasurer, any Assistant Treasurer, and
such other persons as the Board shall determine shall issue all checks,
drafts and other orders for the payment of money, notes and other
evidences of indebtedness issued in the name of or payable by the
Company.
|
8.4
|
Deposits
.
The
Treasurer shall deposit all funds of the Company not otherwise employed in
such banks, trust companies, or other depositories as the Board may select
or as any officer, assistant, agent or attorney of the Company to whom the
Board has delegated such power may select. For the purpose of
deposit and collection for the account of the Company, the President or
the Treasurer (or any other officer, assistant, agent or attorney of the
Company whom the Board has authorized) may endorse, assign and deliver
checks, drafts and other orders for the payment of money payable to the
order of the Company.
|
8.5
|
General and Special
Bank Accounts
.
The Board may authorize the
opening and keeping of general and special bank accounts with such banks,
trust companies, or other
depositories
as the Board may select or as any officer, assistant, agent or attorney of
the Company to whom the Board has delegated such power may
select. The Board may make such special rules and regulations
with respect to such bank accounts, not inconsistent with the provisions
of these Bylaws, as it may deem expedient.
|
ARTICLE
9.
|
|
CERTIFICATES
FOR SHARES AND THEIR TRANSFER
|
|
9.1
|
Certificates for
Shares
.
Every owner of stock of the Company shall
have the right to receive a certificate or certificates, certifying to the
number and class of shares of the stock of the Company which he
owns. The Board shall determine the form of the certificates
for the shares of stock of the Company. The Secretary, transfer
agent, or registrar of the Company shall number the certificates
representing shares of the stock of the Company in the order in which the
Company issues them. The President or any Vice President and
the Secretary or any Assistant Secretary shall sign the certificates in
the name of the Company. Any or all certificates may contain
facsimile signatures. In case any officer, transfer agent, or
registrar who has signed a certificate, or whose facsimile signature
appears on a certificate, ceases to serve as such officer, transfer agent,
or registrar before the Company issues the certificate, the Company may
issue the certificate with the same effect as though the person who signed
such certificate, or whose facsimile signature appears on the certificate,
was such officer, transfer agent, or registrar at the date of
issue. The Secretary, transfer agent, or registrar of the
Company shall keep a record in the stock transfer books of the Company of
the names of the persons, firms or corporations owning the stock
represented by the certificates, the number and class of shares
represented by the certificates and the dates thereof and, in the case of
cancellation, the dates of cancellation. The Secretary,
transfer agent, or registrar of the Company shall cancel every certificate
surrendered to the Company for exchange or transfer. Except in
the case of a lost, destroyed, stolen or mutilated certificate, the
Secretary, transfer agent, or registrar of the Company shall not issue a
new certificate in exchange for an existing certificate until he has
canceled the existing certificate.
|
9.2
|
Transfer of
Shares
.
A holder of record of shares of the
Company's stock, or his attorney-in-fact authorized by power of attorney
duly executed and filed with the Secretary, transfer agent or registrar of
the Company, may transfer his shares only on the stock transfer books of
the Company. Such person shall furnish to the Secretary,
transfer agent, or registrar of the Company proper evidence of his
authority to make the transfer and shall properly endorse and surrender
for cancellation his existing certificate or certificates for such
shares. Whenever a holder of record of shares of the Company's
stock makes a transfer of shares for collateral security, the Secretary,
transfer agent, or registrar of the Company shall state such fact in the
entry of transfer if the transferor and the transferee
request.
|
9.3
|
Lost
Certificates
.
The Board may direct the Secretary,
transfer agent, or registrar of the Company to issue a new certificate to
any holder of record of shares of the Company's stock claiming that he has
lost such certificate, or that someone has stolen,
destroyed
or mutilated such certificate, upon the receipt of an affidavit from such
holder to such fact. When authorizing the issue of a new
certificate, the Board, in its discretion may require as a condition
precedent to the issuance that the owner of such certificate give the
Company a bond of indemnity in such form and amount as the Board may
direct.
|
9.4
|
Regulations
.
The
Board may make such rules and regulations, not inconsistent with these
Bylaws, as it deems expedient concerning the issue, transfer and
registration of certificates for shares of the stock of the
corporation. The Board may appoint or authorize any officer or
officers to appoint one or more transfer agents, or one or more
registrars, and may require all certificates for stock to bear the
signature or signatures of any of them.
|
9.5
|
Holder of
Record
.
The Company may treat as absolute owners
of shares the person in whose name the shares stand of record as if that
person had full competency, capacity and authority to exercise all rights
of ownership, despite any knowledge or notice to the contrary or any
description indicating a representative, pledge or other fiduciary
relation, or any reference to any other instrument or to the rights of any
other person appearing upon its record or upon the share
certificate. However, the Company may treat any person
furnishing proof of his appointment as a fiduciary as if he were the
holder of record of the shares.
|
9.6
|
Treasury
Shares
.
Treasury shares of the Company shall
consist of shares which the Company has issued and thereafter acquired but
not canceled. Treasury shares shall not carry voting or
dividend rights.
|
ARTICLE
10.
|
|
INDEMNIFICATION
|
10.1
|
Definitions
.
In
this Article:
|
|
(a)
|
" Indemnitee " means (i) any present or former Director, advisory director or officer of the Company, (ii) any person who while serving in any of the capacities referred to in clause (i) hereof served at the Company's request as a director, officer, partner, venturer, proprietor, trustee, employee, agent or similar functionary of another foreign or domestic corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, and (iii) any person nominated or designated by (or pursuant to authority granted by) the Board of Directors or any committee thereof to serve in any of the capacities referred to in clauses (i) or (ii) hereof. | |
(b)
|
"
Official Capacity
"
means (i) when used with respect to a Director, the office of Director of
the Company, and (ii) when used with respect to a person other than a
Director, the elective or appointive office of the Company held by such
person or the employment or agency relationship undertaken by such person
on
behalf of the Company, but in each case does not include service for any
other foreign or domestic corporation or any partnership, joint venture,
sole proprietorship, trust, employee benefit plan or other
enterprise.
|
|
||
(c)
|
"
Proceeding
" means any
threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative, arbitrative or investigative, any appeal
in such an action, suit or proceeding, and any inquiry or investigation
that could lead to such an action, suit or
proceeding.
|
10.2
|
Indemnification
.
The
Company shall indemnify every Indemnitee against all judgments, penalties
(including excise and similar taxes), fines, amounts paid in settlement
and reasonable expenses actually incurred by the Indemnitee in connection
with any Proceeding in which he was, is or is threatened to be named
defendant or respondent, or in which he was or is a witness without being
named a defendant or respondent, by reason, in whole or in part, of his
serving or having served, or having been nominated or designated to serve,
in any of the capacities referred to in Section 10.1, if it is determined
in accordance with Section 10.4 that the Indemnitee (a) conducted himself
in good faith, (b) reasonably believed, in the case of conduct in his
Official Capacity, that his conduct was in the Company's best interests
and, in all other cases, that his conduct was at least not opposed to the
Company's best interests, and (c) in the case of any criminal proceeding,
had no reasonable cause to believe that his conduct was unlawful;
provided, however, that in the event that an Indemnitee is found liable to
the Company or is found liable on the basis that personal benefit was
improperly received by the Indemnitee the indemnification (i) is limited
to reasonable expenses actually incurred by the Indemnitee in connection
with the Proceeding and (ii) shall not be made in respect of any
Proceeding in which the Indemnitee shall have been found liable for
willful or intentional misconduct in the performance of his duty to the
Company. Except as provided in the immediately preceding
proviso to the first sentence of this Section 10.2, no indemnification
shall be made under this Section 10.2 in respect of any Proceeding in
which such Indemnitee shall have been (a) found liable on the basis that
personal benefit was improperly received by him, whether or not the
benefit resulted from an action taken in the Indemnitee's Official
Capacity, or (b) found liable to the Company. The termination
of any Proceeding by judgment, order, settlement or conviction, or on a
plea of nolo contendere or its equivalent, is not of itself determinative
that the Indemnitee did not meet the requirements set forth in clauses
(a), (b) or (c) in the first sentence of this Section 10.2. An
Indemnitee shall be deemed to have been found liable in respect of any
claim, issue or matter only after the Indemnitee shall have been so
adjudged by a court of competent jurisdiction after exhaustion of all
appeals therefrom. Reasonable expenses shall, include, without
limitation, all court costs and all fees and disbursements of attorneys
for the Indemnitee. The indemnification provided herein shall
be applicable whether or not negligence or gross negligence of the
Indemnitee is alleged or proven.
|
|
10.3
|
Successful
Defense
.
Without limitation of Section 10.2 and
in addition to the indemnification provided for in Section 10.2, the
Company
shall
indemnify every Indemnitee against reasonable expenses incurred by such
person in connection with any Proceeding in which he is a witness or a
named defendant or respondent because he served in any of the capacities
referred to in Section 10.1, if such person has been wholly successful, on
the merits or otherwise, in defense of the
Proceeding.
|
10.4
|
Determinations
.
Any
indemnification under Section 10.2 (unless ordered by a court of competent
jurisdiction) shall be made by the Company only upon a determination that
indemnification of the Indemnitee is proper in the circumstances because
he has met the applicable standard of conduct. Such
determination shall be made (a) by the Board of Directors by a majority
vote of a quorum consisting of Directors who, at the time of such vote,
are not named defendants or respondents in the Proceeding; (b) if such a
quorum cannot be obtained, then by a majority vote of a committee of the
Board of Directors, duly designated to act in the matter by a majority
vote of all Directors (in which designated Directors who are named
defendants or respondents in the Proceeding may participate), such
committee to consist solely of two (2) or more Directors who, at the time
of the committee vote, are not named defendants or respondents in the
Proceeding; (c) by special legal counsel selected by the Board of
Directors or a committee thereof by vote as set forth in clauses (a) or
(b) of this Section 10.4 or, if the requisite quorum of all of the
Directors cannot be obtained therefor and such committee cannot be
established, by a majority vote of all of the Directors (in which
Directors who are named defendants or respondents in the Proceeding may
participate); or (d) by the shareholders in a vote that excludes the
shares held by Directors that are named defendants or respondents in the
Proceeding. Determination as to reasonableness of expenses
shall be made in the same manner as the determination that indemnification
is permissible, except that if the determination that indemnification is
permissible is made by special legal counsel, determination as to
reasonableness of expenses must be made in the manner specified in clause
(c) of the preceding sentence for the selection of special legal
counsel. In the event a determination is made under this
Section 10.4 that the Indemnitee has met the applicable standard of
conduct as to some matters but not as to others, amounts to be indemnified
may be reasonably prorated.
|
|
10.5
|
Advancement of
Expenses
.
Reasonable expenses (including court
costs and attorneys' fees) incurred by an Indemnitee who was or is a
witness or was, is or is threatened to be made a named defendant or
respondent in a Proceeding shall be paid by the Company at reasonable
intervals in advance of the final disposition of such Proceeding, and
without making any of the determinations specified in Section 10.4, after
receipt by the Company of (a) a written affirmation by such Indemnitee of
his good faith belief that he has met the standard of conduct necessary
for indemnification by the Company under this Article and (b) a written
undertaking by or on behalf of such Indemnitee to repay the amount paid or
reimbursed by the Company if it shall ultimately be determined that he is
not entitled to be indemnified by the Company as authorized in this
Article. Such written undertaking shall be an unlimited
obligation of the Indemnitee but need not be secured and it may be
accepted without reference to financial ability to make
repayment. Notwithstanding any other provision of this Article,
the
Company may pay or reimburse expenses incurred by an Indemnitee in
connection with his appearance as a witness or other participation in a
Proceeding at a time when he is not named a defendant or respondent in the
Proceeding.
|
|
10.11
|
Effect of
Amendment
.
No amendment, modification or repeal
of this Article or any provision hereof shall in any manner terminate,
reduce or impair the right of any past, present or future Indemnitees to
be indemnified by the Company, nor the obligation of the Company to
indemnify any such Indemnitees, under and in accordance with the
provisions of the Article as in effect immediately prior to such
amendment, modification or repeal with respect to claims arising from or
relating to matters occurring, in whole or in part, prior to such
amendment, modification or repeal, regardless of when such claims may
arise or be asserted.
|
|
|
||
ARTICLE
11.
|
||
TAKEOVER
OFFERS
|
12.1
|
General
.
Whenever these Bylaws require notice to any Stockholder, director, officer
or agent, such notice does not mean personal notice. A person
may give effective notice under these Bylaws in every case by depositing a
writing in a post office or letter box in a postpaid, sealed wrapper, or
by dispatching a prepaid telegram addressed to such Stockholder, director,
officer or agent at his address on the books of the
Company. Unless these Bylaws expressly provide to the contrary,
the time when the person sends notice shall constitute the time of the
giving of notice.
|
12.2
|
Waiver of
Notice
.
Whenever the law or these Bylaws require notice, the
person entitled to said notice may waive such notice in writing, either
before or after the time stated
therein.
|
ARTICLE
13.
|
|
MISCELLANEOUS
|
|
13.1
|
Facsimile
Signatures
.
In addition to the use of facsimile
signatures which these Bylaws specifically authorize, the Company may use
such facsimile signatures of any officer or officers, agents or agent, of
the Company as the Board or a committee of the Board may
authorize.
|
13.2
|
Corporate
Seal
.
The Board may provide for a suitable seal
containing the name of the Company, of which the Secretary shall be in
charge. The Treasurer, any Assistant Secretary, or any
Assistant Treasurer may keep and use the seal or duplicates of the seal if
and when the Board or a committee of the Board so
directs.
|
13.3
|
Fiscal
Year
.
The Board shall have the authority to fix
and change the fiscal year of the Company.
|
ARTICLE
14.
|
|
AMENDMENTS
|
|
14.1
|
Subject
to the provisions of the Articles of Incorporation, the Stockholders or
the Board may amend or repeal these Bylaws at any
meeting.
|
Executed
as of this 27th day of November 2007.
|
||
/s/
MaryAnne McAdams
|
||
MaryAnne
McAdams
|
||
Secretary
|
US
$25,000
|
December
12, 2007,
|
w
ith an effective
date
|
|
of
September 7, 2007
|
RX Scripted,
Inc.
|
|
/s/
MaryAnne McAdams
|
|
MaryAnne
McAdams
|
|
Director
|
US
$30,000
|
March
11, 2008,
|
w
ith an effective
date
|
|
of
September 18, 2007
|
1.
|
Interest
on the unpaid balance of this Note shall bear interest at the rate of
seven percent (7%) per annum, which interest shall accrue from the
effective date until the Maturity Date (as defined below), unless prepaid
prior to such Maturity Date. All past-due principal and interest (which
failure to pay such amounts shall be defined herein as an “Event of
Default”) shall bear interest at the rate of fifteen percent (15%) per
annum until paid in full. Interest will be computed on the
basis of a 360-day year.
|
2.
|
Upon
completion of the Maker’s private placement offering, the principal amount
of Two Thousand Five Hundred Dollars ($2,500) shall be due and payable
within five (5) business days.
|
3.
|
The
remaining unpaid principal amount of this Note shall be due and payable on
October 31, 2008 (the “Maturity Date”).
|
4.
|
This
Note may be prepaid in whole or in part, at any time and from time to
time, without premium or penalty.
|
5.
|
This
Note (and any accrued and unpaid interest hereon) shall be convertible
into shares of Maker’s common stock from time to time if not paid on or
before the Maturity Date, at the sole option of the Payee, upon five (5)
days written notice from the Payee to the Maker of the Payee’s desire to
convert such Note into shares of common stock at the rate of one share of
the Maker’s common stock for each $0.10 owed to Payee pursuant to this
Note (the “Conversion Price”), which conversion shall be evidenced by the
receipt of the Maker of a Conversion Notice attached hereto as
Exhibit
A
. The Maker shall have five (5) business days after the
receipt by the Payee of a Conversion Notice to deliver the shares of
common stock converted to Payee (the “Conversion Shares”). If
such shares are not delivered prior the sixth (6
th
)
day following the Maker’s receipt of the Conversion Notice, such failure
to deliver the shares shall constitute an Event of Default of this Note,
which shall not discharge the Maker’s requirement to deliver the
Conversion Shares.
|
6.
|
If
the Maker at any time or from time to time on or after the effective date
of the issuance of this Note (the “Original Issuance Date”)
effects a subdivision of its outstanding common stock, the Conversion
Price then in effect immediately before that subdivision shall be
proportionately decreased, and conversely, if the Maker at any time or
from time to time on or after the Original Issuance Date combines its
outstanding shares of common stock into a smaller number of shares, the
Conversion Price then in effect immediately before the combination shall
be proportionately increased.
|
7.
|
Conversion
Shares may not be sold or transferred unless (i) such shares
are sold pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the “Act”) or (ii) the Maker or its
transfer agent shall have been furnished with an opinion
of counsel (which opinion shall be in form, substance and scope
customary for opinions of counsel in
comparable
|
transactions)
to the effect that the shares to be sold or transferred may be sold or
transferred pursuant to an exemption from such registration or
(iii) such shares are sold or transferred pursuant to Rule 144 under
the Act (or a successor rule) (“Rule 144”) or (iv) such shares are
transferred to an “affiliate” (as defined in Rule 144) of the Holder who
agrees to sell or otherwise transfer the shares only in accordance with
this Note and who is an accredited investor. Until such time as
the Conversion Shares have been registered under the Act or otherwise may
be sold pursuant to Rule 144 without any restriction as to the number of
securities as of a particular date that can then be immediately sold, each
certificate for Conversion Shares that has not been so included in an
effective registration statement or an exemption that permits removal of
the legend, shall bear a legend substantially in the following form, as
appropriate:
|
8.
|
All
shares of common stock which may be issued upon conversion of this Note
will, upon issuance by the Maker in accordance with the terms of this
Note, be validly issued, free from all taxes and liens with respect to the
issuance thereof (other than those created by the holders), free from all
pre-emptive or similar rights and fully paid and
non-assessable.
|
9.
|
If
any payment of principal or interest on this Note shall become due on a
Saturday, Sunday or any other day on which national banks are not open for
business, such payment shall be made on the next succeeding business
day.
|
10.
|
This
Note shall be binding upon and inure to the benefit of the Payee named
herein and Payee’s respective successors and assigns. Each
holder of this Note, by accepting the same, agrees to and shall be bound
by all of the provisions of this Note. Payee may assign this
Note or any of its rights, interests or obligations to this Note without
the prior written approval of Maker.
|
11.
|
No
provision of this Note shall alter or impair the obligation of Maker to
pay the principal of and interest on this Note at the times, places and
rates, and in the coin or currency, herein prescribed.
|
12.
|
The
Maker will do or cause to be done all things reasonably necessary to
preserve and keep in full force and effect its corporate existence, rights
and franchises and comply with all laws applicable to the Maker, except
where the failure to comply could not reasonably be expected to have a
material adverse effect on the Maker. Failure to comply with this
provision shall constitute an Event of
Default.
|
13.
|
Notwithstanding
anything to the contrary in this Note or any other agreement entered into
in connection herewith, whether now existing or hereafter arising and
whether written or oral, it is agreed that the aggregate of all interest
and any other charges constituting interest, or adjudicated as
constituting interest, and contracted for, chargeable or receivable under
this Note or otherwise in connection with this loan transaction, shall
under no circumstances exceed the Maximum
Rate.
|
14.
|
The
Maker agrees to keep reserved such number of shares of common stock as
will permit full conversion of the Note at any time or from time to time
at the Conversion Price (as defined herein);
|
15.
|
In
the event the maturity of this Note is accelerated by reason of an Event
of Default under this Note, any other agreement entered into in connection
herewith or therewith, or by voluntary prepayment by Maker or otherwise,
then earned interest may never include more than the Maximum Rateallowable
by law, computed from the dates of each advance of the loan
proceeds
|
outstanding
until payment. If from any circumstance any holder of this Note shall ever
receive interest or any other charges constituting interest, or
adjudicated as constituting interest, the amount, if any, which would
exceed the Maximum Rate shall be applied to the reduction of the principal
amount owing on this Note, and not to the payment of interest; or if such
excessive interest exceeds the unpaid balance of principal hereof, the
amount of such excessive interest that exceeds the unpaid balance of
principal hereof shall be refunded to Maker. In determining
whether or not the interest paid or payable exceeds the Maximum Rate, to
the extent permitted by applicable law (i) any nonprincipal payment shall
be characterized as an expense, fee or premium rather than as interest;
and (ii) all interest at any time contracted for, charged, received or
preserved in connection herewith shall be amortized, prorated, allocated
and spread in equal parts during the period of the full stated term of
this Note. The term "Maximum Rate" shall mean the maximum rate
of interest allowed by applicable federal or state law.
|
|
16.
|
Except
as provided herein, Maker and any sureties, guarantors and endorsers of
this Note jointly and severally waive demand, presentment, notice of
nonpayment or dishonor, notice of intent to accelerate, notice of
acceleration, diligence in collecting, grace, notice and protest, and
consent to all extensions without notice for any period or periods of time
and partial payments, before or after maturity, without prejudice to the
holder. The holder shall similarly have the right to deal in
any way, at any time, with one or more of the foregoing parties without
notice to any other party, and to grant any such party any extensions of
time for payment of any of said indebtedness, or to grant any other
indulgences or forbearance whatsoever, without notice to any other party
and without in any way affecting the personal liability of any party
hereunder. If any efforts are made to collect or enforce this
Note or any installment due hereunder, the undersigned agrees to pay all
collection costs and fees, including reasonable attorney's
fees.
|
17.
|
A
copy of this Promissory Note signed by one party and faxed to another
party shall be deemed to have been executed and delivered by the signing
party as though an original. A photocopy of this Promissory
Note shall be effective as an original for all
purposes.
|
18.
|
This
Note shall be construed and enforced under and in accordance with the laws
of the State of Texas.
|
RX Scripted,
Inc.
|
|
/s/
MaryAnne McAdams
|
|
MaryAnne
McAdams
|
|
Chief
Executive Officer and President
|
Very
truly yours,
|
|
___________________________
|
|
Name:
|
|