Document:

exhibit10d2posteffecta1.htm

     

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    Exhibit
10.2

    
 

    LENDER
REGISTRATION AGREEMENT

    (Note
Commitment, Purchase and Sale Agreement)

    

    

    This
Lender Registration Agreement is made and entered into between you and Prosper
Marketplace, Inc. (“Prosper”, “we”, or “us”).  This Agreement
will govern all purchases of Borrower Payment Dependent Notes that you may, from
time to time, purchase from Prosper.

    

    Prosper
has filed with the U.S. Securities and Exchange Commission a registration
statement on Form S-1 (No. 333-147019) (as amended from time to time, the
“Registration Statement”) to register the continuous offering and sale of Notes
issued by Prosper.  The Notes will be offered pursuant to
a prospectus dated July 13, 2009 (as supplemented from time to time, the
“Prospectus”) which forms a part of the Registration Statement.  The
Registration Statement became effective on July 10, 2009 pursuant to the
rules and regulations of the U.S. Securities and Exchange Commission under
the Securities Act of 1933, as amended.  You acknowledge that the
Registration Statement has been delivered to you.  You should read the
Prospectus carefully and retain a copy for your records.

    

    1.  Registration as a
Prosper Lender.  You are registering as a lender in the Prosper
marketplace, so that you may be eligible to post bids on listings displayed on
Prosper’s online auction marketplace (the “platform”) and purchase from Prosper
Borrower Payment Dependent Notes (“Notes”) issued by Prosper that are dependent
for payment on payments we receive on the corresponding borrower loans described
in the listings (“borrower loans”).  As a registered lender you also
have access to the Folio Investing Note Trader platform, where you may list
Notes that you own for sale to other Prosper lender members, and bid to purchase
Notes offered for sale by other lender members, in an auction-style bidding
environment.  You agree to comply with the terms and provisions of
this Agreement, the Terms of Use of the Prosper website, and the policies posted
on the Prosper website, as amended from time to time by Prosper in its sole
discretion (collectively, the “Prosper Terms and Conditions”).

    

    Your role
as a Prosper “lender” is that of a purchaser of Notes issued by Prosper, and
your rights and obligations as a purchaser or prospective purchaser of Notes are
set forth below.  Although you are referred to in this Agreement and
on the Prosper website as a “lender,” you are not actually lending your money
directly to Prosper borrowers, but are, instead, acting as an investor and
making purchase commitments for Notes and purchasing Notes from Prosper, that
are dependent for payment on payments we receive on borrower
loans.  Prosper uses the term “lender” instead of “investor” in this
Agreement and on portions of Prosper’s website for the convenience of Prosper
users who appropriately view Prosper as a marketplace for connecting individuals
who wish to borrow money, with people who have money and the desire to have
loans funded to other individuals.

    

    2.  Posting of
Bids.   As a registered Prosper lender, you may post bids on
listings displayed on the platform.  “Listings” are Prosper borrowers’
loan requests that are displayed on the platform.  Listings include
the borrower’s requested loan amount, maximum offered interest rate and
corresponding yield percentage, and the minimum yield percentage that may be bid
on the listing. The yield percentage is the lender member’s effective yield, net
of servicing fees.  The minimum yield percentage applicable to each
listing is based on the Prosper Rating assigned to the listing and will be
calculated by adding the national average certificate of deposit rate that
matches the term of the loan, as published by BankRate.com, to the minimum
estimated loss rate associated with the Prosper Rating assigned to the listing,
which estimated loss rate is based on the historical performance of similar
Prosper loans.  Listings include a Prosper Rating, which is a letter
grade that may be based on a custom Prosper score that indicates the level of
risk associated with the listing and corresponds to an estimated average
annualized loss rate range for the listing.

    

    
      
        
           

        

        
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    Listings
also include other information, including but not limited to, the borrower’s
debt-to-income ratio, credit information from the borrower’s credit report, the
borrower’s group affiliation (if any), and the borrower’s self-reported annual
income range, occupation and employment status.  Borrowers are
identified by a Prosper user name but are not able to disclose their identity or
contact information to lenders.

    

    Prosper
lenders may ask borrowers questions about their listings and borrowers may, but
are not required to, respond to such questions.  Borrowers who elect
to respond to a lender’s question may respond privately, or they may elect to
have the question and answer posted publicly in the listing.  Lenders’
questions are not posted in the listing or displayed elsewhere on our website
unless the borrower elects to answer the question and elects to make the
question and answer publicly available, in which case the question and answer
appears in the listing.  We do not verify any borrowers’ responses to
lender members’ questions.

    

    A bid by
a lender on a listing is the lender’s commitment to purchase from Prosper a Note
in the principal amount of the lender’s winning bid, provided that the listing
has received bids totaling the full loan amount requested in the
listing.  Lenders “bid” the amount they are willing to commit to the
purchase of a Note that is dependent for payment on payments we receive on the
corresponding borrower loan, and the minimum yield percentage they are willing
to receive.  Lenders must have funds in the amount of the bid on
deposit in the Prosper funding account (described below).  Once a bid
is placed, it is irrevocable, and during the time a bid is a “winning” bid on
the listing, the amount of the bid is not permitted to be withdrawn from the
lender’s Prosper funding account.  Lender bids become “winning” bids
if such bids are in the group of bids for Notes that, in aggregate, correspond
to the requested loan amount and are in the lowest yield percentage among all
bids placed against the listing.

    

    Types of Bids.  You
can make manual bids by browsing through listings and placing a bid on the
listing or listings that you choose.  You can also bid by making a
“portfolio plan” by indicating the aggregate amount of your funds to be bid on
listings that meet your specified criteria, the maximum amount that may be bid
on one listing, the minimum yield percentage you are willing to receive, and the
specific borrower or loan criteria (for example, Prosper Rating, borrower income
or employment characteristics, group affiliation, debt-to-income ratio, etc.)
for the listings on which you wish to bid.  You may have more than one
portfolio plan in place at one time, and you may make manual bids while one or
more portfolio plans are in place.

    

    Availability of
Funds.  At the time you place a bid you must have funds on
deposit with Prosper in at least the amount of your bid, and you are not
permitted to withdraw those funds for so long as your bid is “winning” as
described in Section 3 below.  Your funds will be placed in an
FDIC-insured non-interest bearing account at Wells Fargo Bank, N. A. (the
“Prosper funding account”) separate from Prosper’s own funds.  At the
time you register as a lender, you must provide your deposit account information
to facilitate electronic transfers of funds to and from the Prosper funding
account and your deposit account.  You will not earn interest on funds
in the Prosper funding account.  All of your funds in the Prosper
funding account that are not committed to winning bids are available for further
bidding.  You may at any time request that your uncommitted funds in
the Prosper funding account be returned to you, in which case Prosper will
promptly return the remaining funds to your deposit account using the Automated
Clearing House (“ACH”) network, subject to reasonable restrictions on the amount
and timing of transfers of funds.

    

    Your Note Purchase
Commitment.  Whether you make manual bids or bid by making a
portfolio plan, each bid you post on the platform is a commitment and promise to
purchase a Note issued by Prosper, with the proceeds of the sale of the Note
used by Prosper to purchase the specific borrower loan described in the listing
on which the bid was made.  Once you place a bid,

    

    
      
        
           

        

        
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    you may
not cancel or withdraw the bid or reduce the amount of the bid, to the extent
your bid has been matched with one or more listings.

    

    AT THE
TIME YOU SUBMIT A BID ON A LISTING, YOU ARE COMMITTING TO PURCHASE A NOTE ISSUED
BY PROSPER IN THE AMOUNT OF YOUR BID, THAT IS DEPENDENT FOR ITS PAYMENT ON
PAYMENTS WE RECEIVE ON THE BORROWER LOAN DESCRIBED IN THE LISTING, IN THE EVENT
THE LISTING RECEIVES BIDS TOTALING THE FULL AMOUNT REQUESTED BY THE
BORROWER.

    

    Limits on
Bids.  Lenders may bid the entire amount requested by the
borrower, or may bid a lesser amount, subject to a minimum bid amount of
$25.  If you make a portfolio plan, you can achieve risk
diversification by designing your portfolio plan to bid your available funds in
increments as low as $25 and designating in your portfolio plan that the
incremental amount is the maximum amount that may be bid on any one
listing.  The aggregate amount of all of your bids, when added to the
amount outstanding on all of your Notes, must not exceed five million dollars
($5,000,000) for individual lenders, or fifty million dollars ($50,000,000) for
corporate or institutional lenders.  Subject to these dollar limits,
there is no limit on the amount of funds you may commit to bids on
listings.

    

    YOU AGREE
THAT WHEN MAKING BIDS YOU WILL NOT DISCRIMINATE AGAINST ANY BORROWER OR GROUP ON
THE BASIS OF RACE, COLOR, RELIGION, NATIONAL ORIGIN, SEX, MARITAL STATUS, AGE,
SEXUAL ORIENTATION, MILITARY STATUS, THE BORROWER’S SOURCE OF INCOME, OR ANY
OTHER BASIS PROHIBITED BY AN APPLICABLE FEDERAL, STATE OR LOCAL FAIR LENDING
LAW, INCLUDING WITHOUT LIMITATION THE EQUAL CREDIT OPPORTUNITY ACT.

    

    3.  Matching
of Bids and Listings.

    

    a.  In
order to bid on a listing, you must bid an amount equal to or less than the
current auction yield percentage for the listing, subject to a minimum yield
percentage based on the Prosper Rating assigned to each listing.  If
you bid by making a portfolio plan, Prosper’s auction platform will
automatically match your bids with any listings that offer a yield percentage
higher than your minimum acceptable yield percentage, and otherwise meet your
designated criteria.  Unless you specify a different bid order, bids
will be matched first with listings with the least time left for
bidding.

    

    b.  When
you place a bid on a listing, your bid will be compared to other lender bids
placed against the listing, and will be considered to be “winning” to the extent
the yield percentage specified in your bid is (i) lower than existing bids
against the listing, or (ii) equal to existing bids against the listing,
provided the listing has not already received a bid or bids totaling the full
amount requested by the borrower.  Your bid remains outstanding on a
listing until you are outbid, or until the listing is withdrawn by the borrower
or removed by Prosper in accordance with Section 10 below.  If
you are outbid, or if the listing is withdrawn or removed, your bid will be
cancelled, and your funds that were committed to your bid will be available for
further bidding.

    

    c.  If
a listing gets a bid or bids in an amount totaling the requested loan amount,
the bids that are winning bids at the time the listing ends or expires are
considered the winning bids for the listing.  Listings expire when the
designated bidding period elapses, and may end earlier at the borrower’s
discretion at any time after the listing receives bids totaling the requested
loan amount, or if the listing is bid down to the minimum yield percentage
applicable to the listing.  Listing designated by the borrower for
“automatic funding,” will end as soon as the listing receives a bid or bids
totaling the full amount of the requested loan.

    

    
      
        
           

        

        
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    d.  Prosper
does not warrant or guaranty that your bids will become winning bids against any
listings.  In the event some, but not all, of the funds you bid become
winning bids against a listing (for example, when you are the last winning
bidder on a listing), you are committed to purchasing a Note issued by Prosper
in the amount of the portion of your funds that is a winning bid against the
listing, and the remainder of your funds (i.e., the unmatched funds) will remain
in your Prosper funding account, available for further bidding.

    

    e.  In
most instances a listing is matched with more than one bid, and you will be one
of several lenders who purchase a Note in a series of Notes that correspond to
the borrower loan described in the listing.  Each series of Notes will
correspond to a single borrower loan, as described in the listing, originated to
a Prosper borrower member.  Payments to the lenders who purchase the
Notes are dependent on payments received on the corresponding borrower
loan.

    

    f.  To
safeguard your privacy rights and those of borrowers, the identities and
addresses of borrowers and lenders are not displayed on the platform or
elsewhere on the Prosper website.  Only the borrower’s Prosper screen
name will appear on Prosper borrower listings, and only your Prosper screen name
will appear with your bids.

    

    4.  Funding and Sale of
Borrower Loans.  Once a lender has committed to purchase a Note
that is dependent for payment on the corresponding borrower loan and the listing
for such borrower loan receives bids from lenders totaling the requested loan
amount, we proceed with the funding of the corresponding borrower loan, and with
the issuance and sale of Notes to the lenders who were the winning bidders on
the listing.  You must commit to the purchase of a Note through the
platform before we will proceed with funding of the borrower loan that
corresponds to the Note you are committing to purchase.

    

    Loan
funding occurs when loan proceeds are disbursed into the borrower’s designated
deposit account.  All loans are made to Prosper borrowers by WebBank,
a Utah-chartered industrial bank (“WebBank”) from WebBank’s own funds, and will
be evidenced by a promissory note, in the form set forth on the attached
Exhibit B, naming WebBank as the payee, in the amount of the requested
loan.  Following disbursement of loan proceeds to the borrower, the
loan will be sold and assigned by WebBank to Prosper without recourse to
WebBank.  As described in Section 5 below, Prosper uses the
proceeds of the sale of each series of Notes to purchase the corresponding
borrower loan.

    

    5.  Purchase and Sale of
Notes.  At the time a borrower loan is purchased by Prosper, we
proceed with the issuance and sale of Notes to the lenders who were the winning
bidders on the listing.  The purchase price for any Notes you purchase
from Prosper through the platform will be the principal amount of the Notes that
you commit to purchase.  The Notes shall be issued pursuant to an
indenture (the “Indenture”) between Prosper and a trustee.  Funds in
the principal amount of each Note are transferred from each lender’s Prosper
funding account to Prosper, as payment of the purchase price for the
Note.  Prosper will use the proceeds of the sale of each series of
Notes to purchase the corresponding borrower loan from WebBank.

    

    Terms of the
Notes.  The Notes shall have the terms and conditions described
in the Prospectus, the Indenture and the Note.  The Indenture and the
Note are reproduced in Exhibit A to this Agreement, and Prospectus is
available for you to review on the Prosper website.  The form of
promissory note evidencing Prosper borrower loans is reproduced in
Exhibit B to this Agreement.  The specific interest rate,
maturity and other terms of the corresponding borrower loans are described in
the Prosper borrower listings.  Subject to the servicing standard set
forth in Section 6 below, you understand and agree that we may in our sole
discretion, at any time and

    

    
      
        
           

        

        
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    from time
to time, amend or waive any term of a borrower loan, and we may in our sole
discretion charge off any borrower loan that we deem uncollectible.

    

    PAYMENT
ON THE NOTES, IF ANY, DEPENDS ENTIRELY ON THE RECEIPT OF PAYMENTS BY PROSPER IN
RESPECT OF THE CORRESPONDING BORROWER LOAN.  PROSPER DOES NOT WARRANT
OR GUARANTEE IN ANY MANNER THAT YOU WILL RECEIVE ALL OR ANY PORTION OF THE
PRINCIPAL OR INTEREST YOU EXPECT TO RECEIVE ON ANY NOTE OR REALIZE ANY
PARTICULAR OR EXPECTED RATE OF RETURN.  THE AMOUNT YOU RECEIVE ON YOUR
NOTE, IF ANY, IS SPECIFICALLY RESTRICTED TO PAYMENTS MADE BY US EQUAL TO THE
PAYMENTS MADE BY THE BORROWER UNDER A BORROWER LOAN TO WHICH YOU COMMITTED NET
OF SERVICING FEES ON ALL BORROWER PAYMENTS.  PROSPER DOES NOT MAKE ANY
REPRESENTATIONS AS TO A BORROWER’S ABILITY TO PAY AND DOES NOT ACT AS A
GUARANTOR OF ANY CORRESPONDING BORROWER LOAN PAYMENT OR PAYMENTS BY ANY
BORROWER.

    

    YOU
UNDERSTAND AND AGREE THAT BORROWERS MAY DEFAULT ON THEIR PAYMENT
OBLIGATIONS UNDER THE BORROWER LOANS AND THAT SUCH DEFAULTS WILL REDUCE THE
AMOUNTS, IF ANY, YOU MAY RECEIVE UNDER THE TERMS OF ANY NOTES YOU HOLD THAT
CORRESPOND TO THOSE BORROWER LOANS.

    

    6.  Servicing and
Collection of Borrower Loans.  Prosper will service all Prosper
borrower loans, both before and after default, and will service all
Notes.  In servicing borrower loans Prosper may, in its discretion,
utilize affiliated or unaffiliated third party loan servicers, collection
agencies or other agents or contractors.

    

    Prosper
and any third-party servicer servicing a borrower loan may, in its sole
discretion and subject to the servicing standard set forth in this Section,
refer a borrower loan to a collection agency at any time, or elect to initiate
legal action to collect a borrower loan, or sell a borrower loan to a third
party debt buyer at any time.  Subject to the servicing fees described
below, any amounts received by Prosper on Prosper borrower loans will be
forwarded to the holder of the Notes corresponding to the borrower
loan.

    

    The
referral of a delinquent borrower loan to a collection agency within five
(5) business days after it becomes thirty days past-due shall be deemed to
constitute commercially reasonable servicing and collection efforts. Prosper and
any third-party servicer servicing a borrower loan shall have the right, without
your consent, at any time and from time to time and subject to the servicing
standard set forth in this Section, to change the payment date or reduce the
principal amount or the rate of interest or the place and manner of making loan
payments on a borrower loan, or amend or waive any other term of such borrower
loan, or charge off any borrower loan that Prosper or any third-party servicer
servicing the borrower loan deems uncollectible.

    

    Servicing
Standard.  In servicing borrower loans Prosper will use
commercially reasonable efforts to service and collect the borrower loans in
accordance with industry standards customary for loans of the same general type
and character as the borrower loans.

    

    Servicing
Compensation.  As compensation for servicing Prosper borrower
loans and Notes, Prosper shall be entitled to retain from payments received on
the borrower loans a servicing fee calculated by the application of an annual
servicing fee rate applied to the outstanding principal balance of the
Notes.  The current servicing fee rates charged by Prosper are posted
in the Fees and Charges section of the
Prosper website, and are subject to change by Prosper at any time without
notice.

    

    
      
        
           

        

        
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    Prosper’s
current servicing fee rate will be disclosed in all
listings.  Servicing fees will reduce the effective yield on Prosper
borrower loans below the borrower interest rate.

    

    The
servicing fee on each of your Notes will be the amount of the servicing fee in
effect at the time the listing for the loan evidenced by your Note was posted,
and will remain unchanged for the term of the Note. The servicing fee is payable
monthly by deduction from each lender’s share of a loan payment by the borrower.
The servicing fee is payable on all payments received on borrower loans
corresponding to the Notes, including without limitation partial payments made
toward a borrower’s loan. We will not pay you any non-sufficient funds fees or
collection fees we or a third-party collection agency charge, and such fees will
be retained by the party receiving the fee as additional servicing compensation.
Prosper will pay you any late fees we receive on Prosper borrower
loans.  Any prepayments received on borrower loans will be paid
ratably to the Note holders, subject to applicable servicing fees.

    

    7.  Representations and
Warranties as to Notes Sold.  Prosper makes the following
representations and warranties to you, with respect to each Note sold to you
under this Agreement, as of the date the Note is sold, assigned and transferred
to you:

    

    a.  Prosper
has complied in all material respects with applicable federal, state and local
laws in connection with the offer and sale of the Note.

    

    b.  The
Note has been duly authorized and, following payment of the purchase price by
you and electronic execution, authentication and delivery to you, will
constitute valid and binding obligations of Prosper enforceable against Prosper
in accordance with their terms, except as the enforcement of the Note may be
limited by applicable bankruptcy, insolvency or similar laws;

    

    c.  The
proceeds of the borrower loan corresponding to the Note sold have been fully
disbursed to the borrower or the borrower’s designated payee prior to your
purchase of the Note.

    

    d.  Prosper
has made commercially reasonable efforts to authenticate and verify the identity
of the borrower obligated on the borrower loan that corresponds to the
Note.

    

    e.  With
regard to the listing relating to your Note, in the event either of the
following occurs: (1) a Prosper score different from the score calculated
by Prosper for the listing, or (2) Prosper incorrectly applied its formula
to determine the Prosper score, resulting in a Prosper Rating different from the
Prosper Rating that should have appeared in the listing, the remedies in Section
8 below shall apply.  Prosper is not, however, under any obligation to
cure, indemnify or repurchase a series of Notes because of the Prosper score or
Prosper Rating for any other reason, including because the Prosper score or
Prosper Rating proved inaccurate.

    

    f.  In
the event of a material default under a Note you purchase from Prosper under
this Agreement that is the result of verifiable identity theft of the named
borrower’s identity, Prosper will repurchase the Note by crediting your Prosper
funding account with the remaining unpaid principal balance of the
Note.  The determination of whether verifiable identity theft has
occurred shall be in Prosper’s sole discretion.  We may require proof
of the identity theft, such as a copy of a police report filed by the person
whose identity was wrongfully used to obtain the fraudulently-induced borrower
loan, an identity theft affidavit or a bank verification letter (or all of the
above) in order to determine that verifiable identity theft has
occurred.  Prosper shall not be required to repurchase a Note under
this subsection until such Note is at least 120 days past-due, provided,
however, that Prosper may in its sole discretion elect to repurchase a Note at
an earlier time.  You agree that repurchase of your Note by Prosper is
the sole remedy you will have with respect to any such Notes.

    

    
      
        
           

        

        
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    8.  Remedies; Cure and
Repurchase of Loans.  In the event of a breach by Prosper of
any of the foregoing representations and warranties that materially and
adversely affects your interest in a Note sold to you under this Agreement,
Prosper shall either (i) cure the breach, if the breach is susceptible to
cure, (ii) repurchase the Note from you, or (iii) indemnify and hold
you harmless against all losses (including losses resulting from the nonpayment
of the Note), damages, expenses, legal fees, costs and judgments resulting from
any claim, demand or defense arising as a result of the breach.  The
decision whether a breach is susceptible to cure, or whether Prosper shall cure
or repurchase a Note or indemnify you with respect to the Note, shall be in
Prosper’s sole discretion.  Upon discovery by Prosper of any such
breach of the foregoing representations and warranties requiring cure or
repurchase the Note, Prosper shall give you notice of the breach, and of
Prosper’s election to cure or repurchase the Note, no later than ninety (90)
days after our discovery of the breach.  In the event Prosper
repurchases a Note, Prosper will pay you a repurchase price equal to the
remaining outstanding principal balance of the Note as of the date of
repurchase.  The repurchase price will be paid to you by remittance
into the Prosper funding account, and those funds will be available to you for
further bidding.  Upon any such repurchase, the Note shall be
transferred and assigned by you to Prosper, in each case without recourse, and
you authorize and agree that Prosper may execute any endorsements or assignments
necessary to effectuate the transfer and assignment of the Note to
Prosper.  Prosper’s obligation to cure or repurchase a Note or
indemnify you for a  breach of the foregoing representations and
warranties pursuant to this Section is your sole remedy with respect to a
breach of Prosper’s representations and warranties set forth in Section 7
above.

    

    9.  No Advisory
Relationship.  You acknowledge and agree that (i) the
purchase and sale of the Notes pursuant to this Agreement is an arms-length
transaction between you and Prosper; (ii) in connection with the purchase
and sale of the Notes, Prosper is not acting as your agent or fiduciary;
(iii) Prosper assumes no advisory or fiduciary responsibility in your favor
in connection with the purchase and sale of the Notes; (iv) Prosper has not
provided you with any legal, accounting, regulatory or tax advice with respect
to the Notes; and (v) you have consulted your own legal, accounting,
regulatory and tax advisors to the extent you have deemed it
appropriate.

    

    10.  Prosper’s
Right to Verify Information and Cancel Funding.

    

    a.  Prosper
reserves the right to verify the accuracy of all information provided by
borrowers,  lenders and group leaders in connection with listings,
bids and loans.  Prosper also reserves the right to determine in its
reasonable discretion whether a registered user is using, or has used, the
Prosper website illegally or in violation of any order, writ, injunction or
decree of any court or governmental instrumentality, for purposes of fraud or
deception, or otherwise in a manner inconsistent with the Prosper Terms and
Conditions or any registration agreement between Prosper and such
user.  Prosper may conduct its review at any time — before, during or
after the posting of a listing, or before or after the funding or Prosper’s
purchase of a borrower loan or the sale of a Note.  You agree to
respond promptly to Prosper’s requests for information in connection with your
bid, accounts, or your registration with Prosper.

    

    b.  In
the event Prosper or WebBank, prior to the funding or Prosper’s purchase of a
borrower loan, reasonably determines that a listing, or a bid for the listing,
contains materially inaccurate information (including but not limited to
unintended inaccuracies, inaccuracies resulting from errors by Prosper, or
inaccuracies resulting from changes in the borrower’s income, residence or
credit profile between the date a listing is posted and the date the listing is
to be funded) or was posted illegally or in violation of any order, writ,
injunction or decree of any court or governmental instrumentality, for purposes
of fraud or deception, or otherwise in a manner inconsistent with the Prosper
Terms and Conditions or any registration agreement,

    

    
      
        
           

        

        
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    Prosper
and WebBank may refuse to post the listing or, if the listing has already been
posted, remove the listing from the Prosper marketplace and cancel all bids
against the listing.

    

    c.  When
a listing ends or expires with a bid or bids totaling the loan amount requested,
Prosper may conduct a “pre-funding” review prior to the funding or Prosper’s
purchase of the borrower loan.  Prosper may, at any time and in its
sole discretion, delay the funding or Prosper’s purchase of a borrower loan in
order to enable Prosper to verify the accuracy of information provided by
borrowers, lenders and group leaders in connection with the listing or bids
against the listing, and to determine whether there are any irregularities with
respect to the listing or the bids against the listing.  Prosper may
cancel or proceed with the funding or Prosper’s purchase of the borrower loan,
depending on the results of Prosper’s pre-funding review.  If funding
is cancelled, the listing will be removed from the Prosper marketplace and all
bids against the listing will be cancelled, and each bidder’s funds will be
returned to the Prosper funding account, available for further
bidding.

    

    d.  In
most instances, Prosper and WebBank do not verify the income, employment and
occupation or other information provided by borrowers in
listings.  The borrower’s income, employment and occupation in
listings are self-reported, and the borrower’s debt-to-income ratio is
determined by Prosper and WebBank from a combination of the borrower’s
self-reported income and information from the borrower’s credit
report.  The credit data that appears in Prosper borrower listings is
taken directly from a credit report obtained on the borrower from a credit
reporting agency, without any review or verification by Prosper or
WebBank.  Prosper and WebBank do not verify any statements by
borrowers in Prosper borrower listings as to how loan proceeds are to be used
and does not confirm after borrower loan funding how loan proceeds were
used.  In most instances homeownership status in borrower listings is
derived from the borrower’s credit report, but is not verified by Prosper or
WebBank; if the report reflects an active mortgage loan, the borrower is
presumed to be a homeowner.  In connection with Prosper’s and
WebBank’s identity and anti-fraud verification of borrowers, Prosper verifies
the borrower’s deposit account to determine that the borrower is a holder of
record of the account.

    

    11.  No
Guarantee of Returns or Payments.

    

    A.  PROSPER
DOES NOT WARRANT OR GUARANTEE THAT YOU WILL RECEIVE ANY RATE OF RETURN, OR ANY
MINIMUM AMOUNT OF PRINCIPAL OR INTEREST ON ANY NOTE, OR ANY PRINCIPAL OR
INTEREST AT ALL.  THE AMOUNT YOU RECEIVE ON YOUR NOTES IS WHOLLY
DEPENDENT UPON THE BORROWERS’ PAYMENT PERFORMANCE ON THE BORROWER LOANS
CORRESPONDING TO YOUR NOTES.  PROSPER DOES NOT GUARANTEE ANY BORROWER
LOANS OR NOTES PURCHASED OR SOLD THROUGH THE PLATFORM AND DOES NOT ACT AS A
GUARANTOR OF ANY LOAN PAYMENT OR PAYMENTS BY ANY BORROWER.

    

    B.  YOU
FURTHER UNDERSTAND AND ACKNOWLEDGE THAT BORROWERS MAY DEFAULT ON THE
BORROWER LOANS CORRESPONDING TO YOUR NOTES, AND THAT SUCH DEFAULTS
MAY NEGATIVELY AFFECT THE AMOUNT OF PRINCIPAL AND INTEREST YOU RECEIVE ON
YOUR NOTES.

    

    12.  Restrictions on
Use.  Except as provided in Section 14 below, you are not
authorized or permitted to use Prosper to bid or purchase Notes for someone
other than yourself.  You must be an owner of the deposit account you
designate for electronic transfers of funds, with authority to direct that funds
be transferred to or from the account.  Although you are registering
as a lender, you may also register and participate in the Prosper marketplace as
a borrower.  If you obtain one or more borrower loans through the
platform, amounts in your Prosper funding account are subject to set-off against
any delinquent amounts owing on your loans.  Amounts in

    

    
      
        
           

        

        
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    your
Prosper funding account are also subject to set-off against any shortfall
resulting from ACH returns of transfers or deposits of funds to your Prosper
funding account.  You will not receive further notice in advance of
our exercise of our right to set-off amounts in your Prosper funding account
against any delinquent amounts owing on any loan or loans you obtain. Prosper
may in its sole discretion, with or without cause and with or without notice,
restrict your access to the platform or the Prosper website.

    

    13.  Financial Suitability
Representations and Warranties.  You represent and warrant that
you satisfy the applicable minimum financial suitability standards and maximum
investment limits, established for the platform or the Note Trader platform (or
as set forth in a supplement to the Prospectus for residents of the state in
which you reside), and you agree to provide any additional documentation
reasonably requested by us, as may be required by the securities administrators
of certain states, to confirm that you meet such minimum financial suitability
standards and maximum investment limits.  You understand that the
Notes will not be listed on any securities exchange, that there may be no, or
only a limited, Note Trader platform for the Notes, that any trading of Notes
must be conducted in accordance with federal and applicable state securities
laws and that Note purchasers should be prepared to hold the Notes they purchase
until the Notes mature.

    

    14.  Your Other
Representations and Warranties.  You warrant and represent to
Prosper, as of the date of this Agreement and as of any date that you commit to
purchase Notes, that (i) you have received the Prospectus, the Indenture,
and the form of the Note; (ii) you have the legal competence and capacity
to execute and perform this Agreement and that you have duly authorized,
executed and delivered this Agreement; and (iii) in connection with this
Agreement you have complied in all material respects with applicable federal,
state and local laws.  In addition, if you are entering into this
Agreement on behalf of a corporation, partnership, limited liability company or
other entity (“institution”), you warrant and represent that (i) you have
all necessary power and authority to execute and perform this Agreement on such
institution’s behalf; (ii) the execution and performance of this Agreement
will not violate any provision in the institution’s charter documents, by-laws,
indenture of trust or partnership agreement, or other constituent agreement or
instrument governing the formation or administration of your institution; and
(iii) the execution and performance of this Agreement will not constitute
or result in a breach or default under, or conflict with, any order, ruling or
regulation of any court or other tribunal or of any governmental commission or
agency, or any agreement or other undertaking to which the institution is a
party or by which it is bound.

    

    15.  Prosper’s
Representations and Warranties.  Prosper represents and
warrants to you, as of the date of this Agreement and as of any date that you
commit to purchase Notes, that: (a) it is duly organized and is validly
existing as a corporation in good standing under the laws of Delaware and has
corporate power to enter into and perform its obligations under this Agreement;
(b) this Agreement has been duly authorized, executed and delivered by
Prosper; (c) the Indenture has been duly authorized by Prosper and
qualified under the Trust Indenture Act of 1939 and constitutes a valid and
binding agreement of Prosper, enforceable against Prosper in accordance with its
terms, except as the enforcement thereof may be limited by applicable
bankruptcy, insolvency or similar laws.

    

    16.  Recommendations from
Prosper Friends.  Prosper allows borrowers to create a network
of Prosper friends, and obtain bids and recommendations of listings from one or
more of the borrower’s designated Prosper friends.  Recommendations
accompanying bids from borrowers’ Prosper friends are displayed with borrowers’
listings.  Prosper friends do not guarantee payments on any Note or on
any corresponding borrower loan, and a bid or recommendation from a borrower’s
Prosper friend does not obligate the individual making the

    

    
      
        
           

        

        
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    bid or
recommendation to guarantee or make any payments on any Note or on any
corresponding borrower loan.

    

    17.  Prohibited
Activities.  You agree that you will not do the following, in
connection with any listings, bids, Notes, borrower loans or other transactions
involving or potentially involving Prosper:

    

    a.  Represent
yourself to any person, as a director, officer or employee of Prosper, or
WebBank, unless you are such director, officer or employee;

    

    b.  Charge,
or attempt to charge, any Prosper borrower any fee in exchange for your
agreement to bid on or recommend a borrower’s listing, or propose or agree to
accept any fee, bonus, additional interest, kickback or thing of value of any
kind, in exchange for your agreement to bid on or recommend a borrower’s
listing;

    

    c.  Engage
in any activities that require a license as a loan broker, credit services
organization, credit counselor, credit repair organization, lender or other
regulated entity, including but not limited to soliciting loans or loan
applications, quoting loan terms and rates, counseling borrowers on credit
issues or loan options, in connection with any Prosper loan;

    

    d.  Take
any action on your own to collect, or attempt to collect from any borrower,
directly or through any third party, any amount owing under any of your Notes or
on any of the borrower loans that correspond to your Notes;

    

    e.  Bring
a lawsuit or other legal proceeding against any borrower on any borrower
loan;

    

    f.  Contact
borrowers on any borrower loans corresponding to your Notes without the
borrower’s consent;

    

    g.  Contact
any collection agency or law firm to which any borrower loan corresponding to
your Note has been referred for collection;

    

    h.  Include
or display any personally identifying information, including, without
limitation, name, address, phone number, email address, Social Security number
or driver’s license number, or bank account or credit card numbers of any
Prosper member on your Prosper member web page, or elsewhere on or off of the
Prosper website, including but not limited to on any forum, blog or
website;

    

    i.  Contact
a borrower, group leader or Prosper friend or take any action to collect, or
attempt to collect, any amount from any group leader or any of the borrower’s
Prosper friends that provided a recommendation of a listing relating to any
borrower loans corresponding to your Notes, or take any action that directly or
indirectly suggests that any borrower’s group leader or Prosper friend is
obligated in any way on a borrower loan corresponding to any Note;
or

    

    j.  Violate
any applicable federal, state or local laws, including but not limited to, the
Equal Credit Opportunity Act and other fair lending laws, Truth in Lending Act,
Fair Credit Reporting Act, Fair Debt Collection Practices Act, Federal Trade
Commission Act, federal or state consumer privacy laws, state usury or loan fee
statutes, state licensing laws, or state unfair and deceptive trade practices
statutes.

    

    18.  Tax
Treatment.  The parties agree that the Notes are intended to be
indebtedness of Prosper that have original issue discount for U.S. federal
income tax purposes.  You agree that you will not take any position
inconsistent with such treatment of the Notes for tax, accounting,

    

    
      
        
           

        

        
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    or other
purposes, unless required by law.  You further acknowledge that the
Notes will be subject to the original issue discount rules of the Internal
Revenue Code of 1986, as amended, as described in the Prospectus.  You
acknowledge that you are prepared to bear the risk of loss of your entire
purchase price for any Notes you purchase.

    

    19.  Termination of
Registration.  Prosper may in its sole discretion, with or
without cause, terminate this Agreement by giving you notice as provided
below.  In addition, upon our reasonable determination that you
committed fraud or made a material misrepresentation in connection with a
listing, bid or loan, performed any prohibited activity, or otherwise failed to
abide by the terms of this Agreement or the Prosper Terms and Conditions,
Prosper may, in its sole discretion, immediately and without notice, take one or
more of the following actions: (i) terminate or suspend your right to bid
or otherwise participate in the Prosper marketplace; (ii) terminate this
Agreement and your registration with Prosper.  Upon termination of
this Agreement and your registration with Prosper, any bids you have placed on
the platform shall terminate, and will be removed from the platform
immediately.  Any Notes you purchase from Prosper prior to the
effective date of termination shall remain in full force and effect in
accordance with their terms.

    

    20.  Indemnification.  In
addition to your indemnification obligations set forth in Prosper’s Terms and
Conditions, you agree to indemnify, defend, protect and hold harmless Prosper
and its officers, directors, shareholders, employees and agents against all
claims, liabilities, actions, costs, damages, losses, demands and expenses of
every kind, known or unknown, contingent or otherwise, (i) resulting from
any material breach of any obligation you undertake in this Agreement, including
but not limited to your obligation to comply with any applicable laws;
(ii) relating to the contents of your Prosper member web page, your own
website or your business; (iii) resulting from your acts, omissions and
representations (and those of your employees, agents or representatives)
relating to Prosper; or (iv) asserted by third parties against Prosper
alleging that the trademarks, trade names, logos or branding you use, display,
link to or advertise infringes upon the intellectual property rights of any such
third party.  Your obligation to indemnify Prosper shall survive
termination of this Agreement, regardless of the reason for
termination.

    

    21.  Prosper’s Right to
Modify Terms.  Prosper has the right to change any term or
provision of this Agreement or the Prosper Terms and
Conditions.  Prosper will give you notice of material changes to this
Agreement, or the Prosper Terms and Conditions, in the manner set forth in
Section 23.  You authorize Prosper to correct obvious clerical
errors appearing in information you provide to Prosper, without notice to you,
although Prosper expressly undertakes no obligation to identify or correct such
errors.  This Agreement, along with the Indenture, Notes and Prosper
Terms and Conditions, represent the entire agreement between you and Prosper
regarding your participation as a lender on the platform, and supersede all
prior or contemporaneous communications, promises and proposals, whether oral,
written or electronic, between you and Prosper with respect to your involvement
as a lender on the platform.

    

    22.  Member Web
Page Display and Content.  You may, but are not required
to, maintain a “Prosper member web page” on the Prosper website, where you can
post photos, content, logos or links to websites.  If you elect to do
so, you authorize Prosper to display on the Prosper website all such material
you provide to Prosper.  Any material you display on your member
page must conform to the Prosper Terms and Conditions, as amended from time
to time, and material you display or link to must not (i) infringe on
Prosper’s or any third party’s copyright, patent, trademark, trade secret or
other proprietary rights or right of publicity or privacy; (ii) violate any
applicable law, statute, ordinance or regulation; (iii) be defamatory or
libelous; (iv) be lewd, hateful, violent, pornographic or obscene;
(v) violate any laws regarding unfair competition, anti-discrimination or
false advertising; (vi) promote violence or contain hate

    

    
      
        
           

        

        
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    speech;
(vii) contain viruses, trojan horses, worms, time bombs, cancelbots or
other similar harmful or deleterious programming routines.

    

    23.  Notices.  All
notices and other communications hereunder shall be given by email to your
registered email address or will be posted on the Prosper website, and shall be
deemed to have been duly given and effective upon transmission or
posting.  All notices, required disclosures and other communications
to you from the trustee under the Indenture relating to Notes you purchase or
own will be transmitted to you by e-mail to your registered e-mail address or
mailed to you at the address as it appears on the registration books of the
Registrar under the Indenture.  You can contact us by sending an email
to support@prosper.com or calling us toll-free at (866) 615-6319.  You
also agree to notify us if your registered email address changes, and you agree
to update your registered residence address on the Prosper website if you change
your residence.

    

    24.  No
Warranties.  EXCEPT FOR THE REPRESENTATIONS CONTAINED IN THIS
AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES TO THE OTHER
PARTY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE.

    

    25.  Limitation on
Liability.  IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE
OTHER PARTY FOR ANY LOST PROFITS OR SPECIAL, EXEMPLARY, CONSEQUENTIAL OR
PUNITIVE DAMAGES, EVEN IF INFORMED OF THE POSSIBILITY OF SUCH
DAMAGES.  FURTHERMORE, NEITHER PARTY MAKES ANY REPRESENTATION OR
WARRANTY TO THE OTHER REGARDING THE EFFECT THAT THE AGREEMENT MAY HAVE UPON
THE FOREIGN, FEDERAL, STATE OR LOCAL TAX LIABILITY OF THE OTHER.

    

    26.  Miscellaneous.  The
parties acknowledge that there are no third party beneficiaries to this
Agreement.  You may not assign, transfer, sublicense or otherwise
delegate your rights under this Agreement to another person without Prosper’s
prior written consent.  Any such assignment, transfer, sublicense or
delegation in violation of this Section shall be null and
void.  This Agreement shall be governed by the laws of the State of
New York.  Any waiver of a breach of any provision of this Agreement
will not be a waiver of any other subsequent breach.  Failure or delay
by either party to enforce any term or condition of this Agreement will not
constitute a waiver of such term or condition.  If any part of this
Agreement is determined to be invalid or unenforceable under applicable law,
then the invalid or unenforceable provision will be deemed superseded by a valid
enforceable provision that most closely matches the intent of the original
provision, and the remainder of the Agreement shall continue in
effect.  The parties agree to execute and deliver such further
documents and information as may be reasonably required in order to effectuate
the purposes of this Agreement.

    

    
      
        
           

        

        
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    EXHIBIT
A

    

    INDENTURE

    

    
      
        
           

        

        
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    EXHIBIT
B

    

    PROMISSORY
NOTE

    

    Borrower
Address:
                                                                                            .

    

    1.  Promise to
Pay.  In return for a loan I have received, I promise to pay
WebBank, a Utah-chartered Industrial Bank (“you”) the principal sum
of                                        
Dollars
($                    ),
together with interest thereon commencing on the date of funding at the rate of
         percent
(        %) per annum simple
interest.  I understand that references in this Note to you shall also
include any person to whom you transfer this Note.

    

    2.  Payments.  This
Note is payable in        monthly installments of
$                      
each, consisting of principal and interest, commencing on the
                
day of
                          ,
and continuing until the final payment date of
                                    ,
which is the maturity date of this Note.  The final payment shall
consist of the then remaining principal, unpaid accrued interest and other
charges due under this Note.  All payments will be applied first to
any unpaid fees incurred as a result of failed automated payments or returned
checks or bank drafts as provided in Paragraph 11, then to any late charges then
due, then to interest then due and then to principal.  No unpaid
interest or charges will be added to principal.

    

    3.  Interest.  Interest
will be charged on unpaid principal until the full amount of principal has been
paid.  Interest under this Note will accrue daily, on the basis of a
365-day year.  If payments are paid after the scheduled due date, a
greater portion of the payment will be applied to accrued interest, a lesser
portion (if any) will be applied to principal reduction, and the loan will not
amortize as originally scheduled, resulting in a higher final payment
amount.  The interest rate I will pay will be the rate I will pay both
before and after any default.

    

    4.  Late
Charge.  If the full amount of any monthly payment is not made
by the end of fifteen (15) calendar days after its due date, I will pay you a
late charge
of                            .  I
will pay this late charge promptly but only once on each late
payment.

    

    5.  Waiver of
Defenses.  Except as otherwise provided in this Note, you are
not responsible or liable to me for the quality, safety, legality, or any other
aspect of any property or services purchased with the proceeds of the
loan.  If I have a dispute with any person from whom I have purchased
such property or services, I agree to settle the dispute directly with that
person.

    

    6.  Certification;
Exception to Waiver.  I certify that, to my knowledge, the
proceeds of this loan will not be applied in whole or part to purchase property
or services from any person to whom any interest in this loan may be
assigned.  If, notwithstanding the preceding sentence, any person from
whom I have purchased such property acquires any interest in this loan, then
Paragraph 5 will not apply to the extent of that person’s interest, even if that
person later assigns that person’s interest to another person.

    

    7.  Method of
Payment.  I will pay the principal, interest, and any late
charges or other fees on this loan when due.  Those amounts are called
“payments” in this Note.  To ensure that my payments are processed in
a timely and efficient manner, you have given me the choice of making my monthly
payments (i) by automated withdrawal from an account that I designate using
an automated clearinghouse (ACH) or other electronic fund transfer, or
(ii) by bank drafts drawn by you on my behalf on my account each month; and
I have chosen one of these methods.  If I close my account or if my
account changes or is otherwise inaccessible such that you are unable to
withdraw my payments from that account or draw bank drafts on the account, I
will notify you at least three (3) days prior to any such closure, change
or inaccessibility of my

    

    
      
        
           

        

        
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    account,
and authorize you to withdraw my payments from, or draw bank drafts on, another
account that I designate.

    

    With
regard to payments made by automatic withdrawals from my account, I have the
right to (i) stop payment of a preauthorized automatic withdrawal, or
(ii) revoke my prior authorization for automatic withdrawals with regard to
all further loan payments, by notifying the financial institution where my
account is held, orally or in writing at least three (3) business days
before the scheduled date of the transfer.  I agree to notify you
orally or in writing, at least three (3) business days before the scheduled
date of the transfer, of the exercise of my right to stop a payment or to revoke
my prior authorization for further automatic withdrawals.

    

    8.  Default and
Remedies.  If I fail to make any payment when due in the manner
required by Paragraph 7, I will be in default and you may at your option
accelerate the maturity of this Note and declare all principal, interest and
other charges due under this Note immediately due and payable.  If you
exercise the remedy of acceleration you will give me at least 30 days prior
notice of acceleration.

    

    9.  Prepayments.  I
may prepay this loan in full or in part at any time without
penalty.

    

    10.  Waivers.  You
may accept late payments or partial payments, even though marked “paid in full,”
without losing any rights under this Note, and you may delay enforcing any of
your rights under this Note without losing them.  You do not have to
(a) demand payment of amounts due (known as “presentment”), (b) give
notice that amounts due have not been paid (known as “notice of dishonor”), or
(c) obtain an official certification of nonpayment (known as
“protest”).  I hereby waive presentment, notice of dishonor and
protest.  Even if, at a time when I am in default, you do not require
me to pay immediately in full as described above, you will still have the right
to do so if I am in default at a later time.  Neither your failure to
exercise any of your rights, nor your delay in enforcing or exercising any of
your rights, will waive those rights.  Furthermore, if you waive any
right under this Note on one occasion, that waiver will not operate as a waiver
as to any other occasion.

    

    11.  Insufficient Funds
Charge.  If I attempt to make a monthly payment, whether by
check or bank draft or by automated withdrawal from my designated account, and
the payment is unable to be made due to (i) insufficient funds in my
account, (ii) the closure, change or inaccessibility of my account without
my having notified you as provided in Paragraph 7, or (iii) for any other
reason (other than an error by you), I will pay you an additional fee of
$             for
each check or bank draft returned or failed automated withdrawal, unless
prohibited by applicable law.

    

    12.  Attorneys’
Fees.  To the extent permitted by law, I am liable to you for
your legal costs if you refer collection of your loan to a lawyer who is not
your salaried employee.  These costs may include reasonable attorneys’
fees as well as costs and expenses of any legal action.

    

    13.  Loan
Charges.  If a law, which applies to this loan and which sets
maximum loan charges, is finally interpreted so that the interest or other loan
charges collected or to be collected in connection with this loan exceed the
permitted limits, then: (a) any such loan charge shall be reduced by the
amount necessary to reduce the charge to the permitted limit; and (b) any
sums already collected from me which exceeded permitted limits will be refunded
to me.  You may choose to make this refund by reducing the principal I
owe under this Note or by making a direct payment to me.

    

    14.  Assignment.  I
may not assign any of my obligations under this Note without your written
permission.  You do not have to give me your
permission.  You may assign this Note at any time without my
permission.  Unless prohibited by applicable law, you may do so
without telling me.

    

    
      
        
           

        

        
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    My
obligations under this Note apply to all of my heirs and permitted
assigns.  Your rights under this Note apply to each of your successors
and assigns.

    

    15.  Notices.  All
notices and other communications hereunder shall be given in writing and shall
be deemed to have been duly given and effective (i) upon receipt, if
delivered in person or by facsimile, email or other electronic transmission, or
(ii) one day after deposit prepaid for overnight delivery with a national
overnight express delivery service.  Unless a different address is
provided for in a different Paragraph of this Note, notices to me must be
properly addressed to my registered email address or to my address set forth
above unless I provide you with a different address for notice by giving notice
pursuant to this Paragraph, and notices to you must be addressed to WebBank at
support@prosper.com or c/o Prosper Marketplace, Inc., 111 Sutter Street,
22nd Floor, San Francisco, CA 94104, Attention: Customer Service.

    

    16.  Governing
Law.   This Note is governed by federal law and, to the extent
that state law applies, the laws of the State of Utah.

    

    17.  Miscellaneous.   No
provision of this Note shall be modified or limited except by a written
agreement signed by both you and me.  The unenforceability of any
provision of this Note shall not affect the enforceability or validity of any
other provision of this Note.

    

    18.  Arbitration.  RESOLUTION
OF DISPUTES:I HAVE READ
THIS PROVISION CAREFULLY, AND UNDERSTAND THAT IT LIMITS MY RIGHTS IN THE EVENT
OF A DISPUTE BETWEEN YOU AND ME.  I UNDERSTAND THAT I HAVE THE RIGHT
TO REJECT THIS PROVISION, AS PROVIDED IN PARAGRAPH
(i) BELOW.

    

    (a)   In
this Resolution of Disputes provision:

    

    (i)   “I,”
“me” and “my” mean the borrower under this Note, as well as any person claiming
through the borrower;

    

    (ii)   “You”
and “your” mean WebBank, any person servicing this Note for WebBank, and any
subsequent holders of this Note or any interest in this Note, and each of their
respective parents, subsidiaries, affiliates, predecessors, successors, and
assigns, as well as the officers, directors, and employees of each of them;
and

    

    (iii)   “Claim”
means any dispute, claim, or controversy (whether based on contract, tort,
intentional tort, constitution, statute, ordinance, common law, or equity,
whether pre-existing, present, or future, and whether seeking monetary,
injunctive, declaratory, or any other relief) arising from or relating to this
Note or the relationship between you and me (including claims arising prior to
or after the date of the Note), and includes claims that are brought as
counterclaims, cross claims, third party claims, or otherwise and disputes about
the validity or enforceability of this Agreement or the validity or
enforceability of this Resolution of Disputes provision.

    

    (b)   Any
Claim between you and me shall be resolved, upon the election of either you or
me, by binding arbitration administered by the American Arbitration Association
or JAMS, under the applicable arbitration rules of the administrator in effect
at the time a Claim is filed (“Rules”).  If I file a claim, I may
chose the administrator; if you file a claim, you may chose the administrator
but you agree to change to the other permitted administrator at my request
(assuming that the other administrator is available). I can obtain the
Rules and other information about initiating arbitration by contacting the
American Arbitration Association at 1633 Broadway, 10th Floor, New York, NY
10019, (800) 778-7879, www.adr.org; or by contacting JAMS at 1920 Main Street,
Suite 300, Irvine, CA 92614, (949) 224-1810, www.jamsadr.com.  Your
address for serving any arbitration

    

    
      
        
           

        

        
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    demand or
claim is WebBank, c/o Prosper Marketplace, Inc., 111 Sutter Street, 22nd
Floor, San Francisco, CA 94104, Attention: Legal Department.

    

    (c)   Claims
will be arbitrated by a single, neutral arbitrator, who shall be a retired judge
or a lawyer with at least ten years experience.  You agree not to
invoke your right to elect arbitration of an individual Claim filed by me in a
small claims or similar court (if any), so long as the Claim is pending on an
individual basis only in such court.

    

    (d)   You
will pay all filing and administration fees charged by the administrator and
arbitrator fees up to $1,000, and you will consider my request to pay any
additional arbitration costs.  If an arbitrator issues an award in
your favor, I will not be required to reimburse you for any fees you have
previously paid to the administrator or for which you are
responsible.  If I receive an award from the arbitrator, you will
reimburse me for the fees paid by me to the administrator.  Each party
shall bear its own attorney’s, expert’s and witness fees, which shall not be
considered costs of arbitration; however, if a statute gives me the right to
recover these fees, or fees paid to the administrator, then these statutory
rights will apply in arbitration.

    

    (e)   Any
in-person arbitration hearing will be held in the city with the federal district
court closest to my residence, or in such other location as the parties may
mutually agree.  The arbitrator shall apply applicable substantive law
consistent with the Federal Arbitration Act, 9 U.S.C.  § 1-16,
and, if requested by either party, provide written reasoned findings of fact and
conclusions of law.  The arbitrator shall have the power to award any
relief authorized under applicable law.  Any appropriate court may
enter judgment upon the arbitrator’s award.  The arbitrator’s decision
will be final and binding except that: (1) any party may exercise any
appeal right under the FAA; and (2) any party may appeal any award relating
to a claim for more than $100,000 to a three-arbitrator panel appointed by the
administrator, which will reconsider de novo any aspect of the appealed
award.  The panel’s decision will be final and binding, except for any
appeal right under the FAA.  Unless applicable law provides otherwise,
the appealing party will pay the appeal’s cost, regardless of its
outcome.  However, you will consider any reasonable written request by
me for you to bear the cost.

    

    (f)   Neither
you nor I shall have the right to participate as a representative or member of
any class of claimants in arbitration, and you and I further agree that claims
of third parties shall not be joined in any arbitration between you and me,
without the express written consent of both you and me.  Only the
claims of or against persons relating to a single Note or listing (such as
holders of Notes relating to a single listing) may be joined in a single
arbitration.  The validity and effect of this paragraph (f) shall
be determined exclusively by a court, and not by the administrator or any
arbitrator.  The arbitrator shall have no power to arbitrate any
Claims on a class action basis or Claims brought in a purported representative
capacity on behalf of the general public, other borrowers, or other persons
similarly situated.

    

    (g)   If
any portion of this Resolution of Disputes provision is deemed invalid or
unenforceable for any reason, it shall not invalidate the remaining portions of
this provision.  However, if paragraph (f) of this Resolution of
Disputes provision is deemed invalid or unenforceable in whole or in part, then
this entire Resolution of Disputes provision shall be deemed invalid and
unenforceable.  The terms of this Resolution of Disputes provision
will prevail if there is any conflict between the Rules and this
provision.

    

    (h)   THE PARTIES ACKNOWLEDGE AND AGREE
THAT, EXCEPT AS EXPRESSLY PROVIDED IN THIS RESOLUTION OF DISPUTES PROVISION,
THEY ARE WAIVING ALL RIGHTS TO A TRIAL BY COURT OR JURY AS A MEANS OF RESOLVING
ANY DISPUTES ARISING OUT OF OR RELATING TO THIS AGREEMENT.  THEY
ACKNOWLEDGE THAT ARBITRATION WILL LIMIT THEIR

    

    
      
        
           

        

        
          17

          
            

          

        

        
           

        

      

    

    

    LEGAL
RIGHTS, INCLUDING THE RIGHTS TO PARTICIPATE IN A CLASS ACTION, THE RIGHT TO
A JURY TRIAL, THE RIGHT TO CONDUCT FULL DISCOVERY, AND THE RIGHT TO APPEAL
(EXCEPT AS PERMITTED IN PARAGRAPH (e) OR UNDER THE FEDERAL ARBITRATION
ACT).

    

    (i)   I
understand that I may reject this Resolution of Disputes provision, in which
case neither you nor I will have the right to elect
arbitration.  Rejection of this provision will not affect the
remaining parts of this Agreement.  To reject this Resolution of
Disputes provision, I must send us written notice of my rejection within 30 days
after the date that this Note was made.  I must include my name,
address, and account number.  The notice of rejection must be mailed
to WebBank, c/o Prosper Marketplace, Inc., 111 Sutter Street, 22nd Floor,
San Francisco, CA 94104, Attention: Legal Department.  This is the
only way that I can reject this Resolution of Disputes provision.

    

    (j)   The
parties acknowledge and agree that this arbitration agreement is made pursuant
to a transaction involving interstate commerce and shall be governed by the
Federal Arbitration Act.  This Resolution of Disputes provision shall
survive the termination of this Note and the repayment of any or all amounts
borrowed.

    

    Arizona Residents: Notice: I
understand that I may request that the initial disclosures prescribed in the
Truth in Lending Act (15 United States Code sections 1601 through 1666j) be
provided in Spanish before signing any loan documents.

    

    Aviso Para Prestatarios En
Arizona: Puedo solicitar que las divulgaciones iniciales prescritas en la
Ley Truth in Lending
Act (15 Código de los Estados Unidos secciones 1601 hasta 1666j) sean
proporcionadas en español antes de firmar cualesquiera documentos de
préstamos.

    

    Missouri Residents: Oral
agreements or commitments to loan money, extend credit or to forbear from
enforcing repayment of a debt including promises to extend or renew such debt
are not enforceable.  To protect me (borrower) and you (creditor) from
misunderstanding or disappointment, any agreements we reach covering such
matters are contained in this writing, which is the complete and exclusive
statement of the agreement between us, except as we may later agree in writing
to modify it.

    

    By
signing this Note, I acknowledge that I (i) have read and understand all
terms and conditions of this Note, (ii) agree to the terms set forth herein, and
(iii) acknowledge receipt of a completely filled-in copy of this
Note.

    

    

    Date:
__________________                         
_________________________

    [Borrower]

    

    

    Last
Updated:   September 7, 2009

    

    

    

    
      
        
           

        

        
          18ex10-1.htm

    Exhibit
10.1

    Stock   Purchase   Agreement

    

    THIS STOCK PURCHASE AGREEMENT
(this “Agreement”) is made effective as of
the 2nd day of October 2009, by and among David M. Loev, an individual
(“Loev”)
and MaryAnne McAdams, (“McAdams”
and together with Loev, the “Seller”
or the “Sellers”),
and Archetype Partners LLC, a Georgia limited liability company, or its assigns
(being herein referred to as “Purchaser”), each sometimes referred
to herein as a “Party”
and collectively the “Parties.”

    

    PRELIMINARY
STATEMENTS

    

    
      	
               
      

            	
              A.

            	
              Sellers
      collectively own 3,000,000 shares of common stock of RX Scripted, Inc., a
      Nevada corporation (the “Company”),
      which shares represent approximately 92% of the outstanding shares of the
      Company.

            

    

    

    
      	
               
      

            	
              B.

            	
              Sellers
      are willing to sell an aggregate of 2,336,000 shares of common stock of
      the Company (the “Shares”
      or the “Common
      Stock”) to the Purchaser, on the terms, provisions and conditions
      set forth herein.

            

    

    

    NOW, THEREFORE, in
consideration of the mutual agreements contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Seller and Purchaser do hereby agree as follows:

    

    ARTICLE
I

    

    Purchase and Sale of the
Common Stock

    

    Section 1.01.  Purchase and
Sale.  On the Closing Date (as defined below) and upon the
terms and subject to the conditions set forth herein, the Sellers shall deliver
the Common Stock of the Company to the Purchaser free and clear of all liens,
and Purchaser shall purchase the Common Stock from the Seller in accordance with
Section 1.02 below.

    

    Section 1.02.  Purchase
Price.  The purchase price (the “Purchase
Price”) for the
Common Stock shall be $185,000 and the Additional Shares (as defined below),
payable as follows:

    

    
      	
               
      

            	
              (a)

            	
              Purchaser
      shall pay Sellers $100,000 in cash at Closing (the “Closing
      Cash Consideration”);

            

    

    

    
      	
               
      

            	
              (b)

            	
              Purchaser
      shall pay Sellers $85,000 within 45 days of Closing, which amount if not
      paid within 45 days of Closing shall bear interest at the rate of 19.2%
      per annum, until paid in full (the “Post-Closing
      Cash Consideration”); and

            

    

    

    
      	
               
      

            	
              (c)

            	
              Following
      the transaction by Purchaser involving the Company, which transaction
      shall include the acquisition of a business unit and may include, but not
      be limited to, a Share Exchange Agreement, Stock Purchase Agreement or
      similar agreement which results in a Change in Control (as defined below)
      of the Company, the Purchaser shall cause the Company to issue to the
      Sellers, within 10 days of the closing of such transaction, a sufficient
      number of additional shares of common stock of the Company such that each
      Seller owns, together which such other shares of common stock as each
      Seller then owns, at a minimum 1% of the Company’s then outstanding voting
      shares (the “Additional
      Shares” and together with 1.02(b) above, the “Continuing
      Obligations”).  The Additional Shares shall apply to only
      the first acquisition and related financing and no other transactions of
      any kind, provided nothing herein shall limit Sellers rights as
      shareholders to participate in stock dividends or stock splits or other
      transactions that merely adjust or change the number of shares outstanding
      on a pro rata basis.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (d)

            	
              A
      “Change
      in Control” shall include, but not be limited
  to:

            

    

    

    
      	
               
      

            	
              (1)

            	
              the
      adoption of a plan of merger, share exchange, stock purchase agreement
      with any other corporation or association as a result of which the holders
      of the voting capital stock of the Company as a group would receive less
      than 50% of the voting capital stock of the surviving or resulting
      corporation;

            

    

    

    
      	
               
      

            	
              (2)

            	
              the
      approval by the Board of Directors of the Company of an agreement
      providing for the sale or transfer of substantially all the assets of the
      Company; or

            

    

    

    
      	
               
      

            	
              (3)

            	
              the
      acquisition of more than 20% of the Company's voting capital stock by any
      person within the meaning of Rule 13d-3 under the Securities Act of 1933,
      as amended.

            

    

    

    Section 1.03. Time and Place of
Closing.  Subject to the satisfaction or waiver of the
conditions herein, the closing (the “Closing”) of the transactions
contemplated by this Agreement shall take place on or before __________, 2009 or
at such time, date or place as the Seller and Purchaser may
agree (the “Closing
Date”).

    

    Section 1.04.  Delivery of the Common
Stock; Payment of Purchase Price.  At Closing:  (a)
the Seller shall deliver to the Purchaser the certificates representing the
Common Stock, duly endorsed in blank or accompanied by stock powers duly
endorsed in blank, with all taxes attributable to the transfer and sale of the
Common Stock paid by the Seller; and (b) the Purchaser shall deliver to the
Seller the Closing Cash Consideration in accordance with Section
1.02.

    

    ARTICLE
II

    

    Representations and
Warranties of Sellers and the Company

    

    Subject to all of the terms, conditions
and provisions of this Agreement, the Sellers and the Company hereby represent
and warrant to Purchaser, as of the date hereof and as of the Closing, as
follows:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section 2.01.  Organization and
Qualification.  The Company is a Nevada corporation, duly
organized, validly existing and in good standing under the laws of the State of
Nevada.  The Company has all requisite power and authority, corporate
or otherwise, to own, lease and operate its assets and properties and to carry
on its business as now being conducted.

    

    Section 2.02.  Capitalization of the
Company; Title to the Common Stock.  There are 100,000,000
shares of common stock, $0.001 par value per share, authorized of the Company,
of which 3,282,500 shares of common stock are issued and outstanding and
10,000,000 shares of preferred stock, $0.001 par value per share, authorized of
the Company, of which no shares are currently issued and
outstanding.  All of the outstanding shares of common stock of the
Company have been duly authorized and validly issued, are fully paid and
nonassessable and are free of preemptive rights.  The Common Stock
transferred by the Seller to Purchaser will be free and clear of
liens.  There are no outstanding or authorized subscriptions, options,
warrants, calls, rights or other similar contracts, including rights of
conversion or exchange under any outstanding debt or equity security or other
contract, or obligating the Company to issue, deliver or sell, or cause to be
issued, delivered or sold, any other shares of capital stock of the Company or
any other debt or equity securities convertible into or evidencing the right to
subscribe for any such shares of capital stock or obligating the Company to
grant, extend or enter into any such contract, except a convertible note with
Loev as otherwise described in the Company’s EDGAR filings at www.sec.gov which
will be cancelled as of Closing.  The Sellers have full legal right to
sell, assign and transfer the Common Stock to Purchaser and will, upon payment
for the Common Stock and delivery to Purchaser of a certificate or certificates
representing the Common Stock, transfer good and indefeasible title to the
Common Stock to Purchaser, free and clear of liens, subject only to the
Continuing Obligations described above.

    

    Section 2.03.  Authority.  The
Sellers have all requisite power and authority, corporate or otherwise, to
execute and deliver this Agreement and to consummate the transactions
contemplated hereby and thereby.  The Sellers and the Company have
duly and validly executed and delivered this Agreement and will, on or prior to
the Closing, execute, such other documents as may be required hereunder and,
assuming the due authorization, execution and delivery of this Agreement by the
parties hereto and thereto, this Agreement constitutes, the legal, valid and
binding obligation of the Sellers and the Company, as applicable, enforceable
against the Sellers and the Company, as applicable, in accordance with its
terms, except as such enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally and general equitable principles.

    

    Section 2.04.  No
Conflict.  The execution and delivery by the Sellers and the
Company of this Agreement and the consummation of the transactions contemplated
hereby and thereby, do not and will not, by the lapse of time, the giving of
notice or otherwise:  (a) constitute a violation of any law; (b)
constitute a breach or violation of any provision contained in the Articles of
Incorporation or Bylaws of the Company; (c) constitute a breach of any provision
contained in, or a default under, any governmental approval, any writ,
injunction, order, judgment or decree of any governmental authority or any
contract or agreement to which the Sellers and/or the Company are a party; or
(d) result in or require the creation of any lien upon the Common
Stock.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section 2.05.  Consents and
Approvals.  No governmental approvals and no notifications,
filings or registrations to or with any governmental authority or any other
person is or will be necessary for the valid execution and delivery by the
Seller and/or the Company of this Agreement or the consummation of the
transactions contemplated hereby or thereby, or the enforceability hereof or
thereof, other than those which have been obtained or made and are in full force
and effect.

    

    Section 2.06.  Litigation.  There
are no claims pending or, to the knowledge of the Sellers and the Company,
threatened against or affecting the Company or any of its assets, liabilities
and properties before or by any governmental authority or any other
person.  The Sellers and the Company have no knowledge of the basis
for any claim, which alone or in the aggregate:  (a) could reasonably
be expected to result in any liability with respect to either of the Company; or
(b) seeks to restrain or enjoin the execution and delivery of this Agreement or
the consummation of any of the transactions contemplated hereby or
thereby.  There are no judgments or outstanding orders, injunctions,
decrees, stipulations or awards against either of the Company or any of their
assets and properties.

    

    Section 2.07.  Brokers, Finders and
Financial Advisors.  No broker, finder or financial advisor has
acted for Sellers in connection with this Agreement or the transactions
contemplated hereby or thereby, and no broker, finder or financial advisor is
entitled to any broker’s, finder’s or financial advisor’s fee or other
commission in respect thereof based in any way on any contract with
Seller.

    

    Section 2.08.  Liabilities. Sellers
shall be responsible for all liabilities of the Company at Closing and shall
indemnify the Purchaser against such liabilities subsequent to the Parties
entering into this Agreement and subsequent to Closing.

    

    Section 2.09  Filings.  All
of the Company’s SEC filings are accurate in all material respects and contain
all necessary disclosures and were duly and timely filed and all required
filings are up to date.  The Company is not under and has no knowledge
of any facts that would give rise to the SEC sanctioning or otherwise imposing
any restrictions on the Company’s ability to file a registration statement or
permit that registration statement from going effective in the SEC’s ordinary
course.

    

    ARTICLE
III

    

    Representations and
Warranties of Purchaser

    

    Subject to all of the terms, conditions
and provisions of this Agreement, Purchaser hereby represents and warrants to
the Sellers, as of the date hereof and as of the Closing, as
follows:

    

    Section 3.01.  Authority.  Purchaser
has all requisite power and authority to execute and deliver this Agreement and
to consummate the transactions contemplated hereby and
thereby.  Purchaser has duly and validly executed and delivered this
Agreement and, assuming the due authorization, execution and delivery of this
Agreement by the other parties hereto and thereto, this Agreement constitutes
the legal, valid and binding obligation of Purchaser, enforceable against
Purchaser in accordance with its terms, except as such enforcement may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ rights generally and general equitable
principles.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section 3.02.  No
Conflict.  The execution and delivery by Purchaser of this
Agreement and the consummation of the transactions contemplated hereby and
thereby do not and shall not, by the lapse of time, the giving of notice or
otherwise:  (a) constitute a violation of any law; or (b) constitute a
breach of any provision contained in, or a default under, any governmental
approval, any writ, injunction, order, judgment or decree of any governmental
authority or any contract to which Purchaser is a party or by which Purchaser is
bound or affected.

    

    Section 3.03.  Consents and
Approvals. No governmental approvals and no notifications, filings or
registrations to or with any governmental authority or any other person is or
will be necessary for the valid execution and delivery by Purchaser of this
Agreement and the closing documents to which it is a party, or the consummation
of the transactions contemplated hereby or thereby, or the enforceability hereof
or thereof, other than those which have been obtained or made and are in full
force and effect.

    

    Section 3.04.  Litigation.  There
are no claims pending or, to the knowledge of Purchaser, threatened, and
Purchaser has no knowledge of the basis for any claim, which either alone or in
the aggregate, seeks to restrain or enjoin the execution and delivery of this
Agreement or the consummation of any of the transactions contemplated hereby or
thereby.  There are no judgments or outstanding orders, injunctions,
decrees, stipulations or awards against Purchaser which prohibits or restricts,
or could reasonably be expected to result in any delay of, the consummation of
the transactions contemplated by this Agreement.  Purchaser agrees to
indemnify and hold harmless the Seller and Company against any and all costs,
judgments, fees or awards whatsoever associated with any proceedings, claims,
demands, or other actions made against the Company for time periods prior to
Closing.

    

    Section 3.05.  Brokers, Finders and
Financial Advisors.   No broker, finder or financial
advisor has acted for Purchaser in connection with this Agreement or the
transactions contemplated hereby or thereby, and no broker, finder or financial
advisor is entitled to any broker’s, finder’s or financial advisor’s fee or
other commission in respect thereof based in any way on any contract with
Purchaser.

    

    Section 3.06.  Representations,
Acknowledgements and Warranties of Purchaser.  The Purchaser
represents, acknowledges and warrants the following to the Company on behalf of
the Purchaser and/or any permitted assigns of the Purchaser, and agrees that
such representations, acknowledgements and warranties shall be automatically
reconfirmed by the Purchaser on the Closing Dates:

    

    (a)           The
Purchaser recognizes that the Common Stock has not been registered under the
Securities Act of 1933, as amended (“Act”),
nor under the securities laws of any state and, therefore, cannot be resold
unless the resale of the Common Stock is registered under the Act or unless an
exemption from registration is available.  The Purchaser may not sell
the Common Stock without registering them under the Act and any applicable state
securities laws unless exemptions from such registration requirements are
available with respect to any such sale;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)           The
Purchaser is acquiring the Common Stock for its own account for long-term
investment and not with a view toward resale, fractionalization or division, or
distribution thereof, and it does not presently have any reason to anticipate
any change in its circumstances, financial or otherwise, or particular occasion
or event which would necessitate or require the sale or distribution of the
Common Stock.  No one other than the Purchaser will have any
beneficial interest in said securities;

    

    (c)           The
Purchaser acknowledges that it is an “Accredited
Investor” because it meets one of the following items: is a natural
person who has an individual net worth, or joint net worth with  that
person's spouse of more than $1,000,000; or is a natural person who had an
individual income in excess of $200,000 in each of the two most recent years or
joint income with that person's spouse in excess of $300,000 in each of those
years and has a reasonable expectation of reaching the same income level in the
current year; or is a bank as defined in Section 3(a)(2) of the 1933 Act or any
savings and loan association or other institution as defined in Section
3(a)(5)(A) of the 1933 Act whether acting in its individual or fiduciary
capacity; or any broker or dealer registered pursuant to Section 15 of the
Securities Exchange Act of 1934; or is an insurance company as defined in
Section 2(13) of the 1933 Act; or is an investment company registered under the
Investment Company Act of 1940; or a business development company as defined in
Section 2(a)(48) of the Investment Company Act of 1940; or is a Small Business
Investment Company licensed by the U. S. Small Business Administration under
Section 301(c) or (d) of the Small Business Investment Act of 1958; or is an
employee benefit plan within the meaning of Title I of the Employee Retirement
Income Security Act of 1974, if the investment decision is made by a "plan
fiduciary" (as defined in Section 3(21) of such act) which is either a
bank, insurance company, or registered investment advisor, or if the employee
benefit plan has total assets in excess of $5,000,000, or, if a self-directive
plan, its investment decisions are made solely by persons that are accredited
investors; or is a "private
business development company" as defined in Section 202(a)(22) of the
Investment Advisors Act of 1940; or is an organization described in Section
501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar
business trust, or partnership, not formed for the specific purpose of acquiring
the securities offered, with total assets in excess of $5,000,000; or any trust,
with total assets in excess of $5,000,000, not formed for the specific purpose
of acquiring the Common Stock, whose purchase is directed by a sophisticated
person as defined in the rules and regulations of the 1933 Act; or is an entity
in which all of the equity owners fall within one of the categories set forth
above; or is otherwise an Accredited Investor as defined in Section 501 of
Regulation D as adopted by the Securities and Exchange Commission;

    

    (d)           The
Purchaser has such knowledge and experience in financial and business matters
that the Purchaser is capable of evaluating the merits and risks of an
investment in the Common Stock and of making an informed investment decision,
and does not require a Purchaser Representative in evaluating the merits and
risks of an investment in the Common Stock;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)           The
Purchaser recognizes that an investment in the Company is a speculative venture
and that the total amount of funds tendered to purchase the Common Stock is
placed at the risk of the business and may be completely lost.  The
purchase of Common Stock as an investment involves special risks.  The
Purchaser has read and reviewed the Company’s latest periodic and current report
filings on the Securities and Exchange Commission’s EDGAR webpage at
www.sec.gov;

    

    (f)           The
Purchaser realizes that the Common Stock shares cannot readily be sold as they
will be restricted securities and therefore the Common Stock must not be
purchased unless the Purchaser has liquid assets sufficient to assure that such
purchase will cause no undue financial difficulties and the Purchaser can
provide for current needs and possible personal contingencies;

    

    (g)           The
Purchaser confirms and represents that it is able (i) to bear the economic risk
of its investment, (ii) to hold the Common Stock for an indefinite period of
time, and (iii) to afford a complete loss of its investment.  The
Purchaser also represents that it has (i) adequate means of providing for its
current needs and possible personal contingencies, and (ii) has no need for
liquidity in this particular investment;

    

    (h)           All
information which the Purchaser has provided to the Company concerning the
Purchaser's financial position and knowledge of financial and business matters
is correct and complete as of the date hereof, and if there should be any
material change in such information prior to acceptance of this Agreement by the
Company, the Purchaser will immediately provide the Company with such
information; and

    

    (i)           The
Purchaser has carefully considered and has, to the extent it believes such
discussion necessary, discussed with his, her or its professional, legal, tax
and financial advisors, the suitability of an investment in the Common Stock for
its particular tax and financial situation and that the Purchaser and his, her
or its advisers, if such advisors were deemed necessary, have determined that
the Common Stock are a suitable investment for it.

    

    ARTICLE
IV

    

    Covenants

    

    Section 4.01.  Further
Assurances.  Sellers, the Company and Purchaser agree that,
from time to time, whether before, at or after the Closing, each of them will
take such other action and to execute, acknowledge and deliver such contracts,
deeds, or other documents (a) as may be reasonably requested and necessary or
appropriate to carry out the purposes and intent of this Agreement; or (b) to
effect or evidence the transfer to the Purchaser of the Common Stock held by or
in the name of the Sellers.

    

    Section 4.02.  Public
Announcements.  Except as required by law, without the prior
written approval of the other party, neither Sellers, the Company nor Purchaser
will issue, or permit any agent or affiliate thereof to issue, any press release
or otherwise make or permit any agent or affiliate thereof to make, any public
statement or announcement with respect to this Agreement or the transactions
contemplated hereby and thereby, provided however that the Company may take
actions consistent with Form 8-K to disclose the Agreement and the terms and
conditions herein in its required filings on EDGAR.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section 4.03.  Voting.  Provided
that Purchaser is not in default for any obligation hereunder that remains
uncured, for the first twelve months after Closing, Sellers shall vote
their shares in the same manner as Purchasers.

    

    

    ARTICLE
V

    

    Conditions

    

    Section 5.01.  Conditions to Obligations of
each of the Parties.  The respective
obligations of each party to consummate the transactions contemplated hereby
shall be subject to the fulfillment at or prior to the Closing of the following
conditions: (a) no preliminary or permanent injunction or other order, decree or
ruling which prevents the consummation of the transactions contemplated by this
Agreement shall have been issued and remain in effect; (b) no claim shall have
been asserted, threatened or commenced and no law shall have been enacted,
promulgated or issued which would reasonably be expected to (i) prohibit the
purchase of, payment for or retention of the Common Stock by Purchaser or the
consummation of the transactions contemplated by this Agreement or (ii) make the
consummation of any such transactions illegal; and (c) all approvals legally
required for the consummation of the transactions contemplated by this Agreement
shall have been obtained and be in full force and effect at the
Closing.

    

    Section 5.02.  Conditions to Obligations of
Sellers.  The obligations of
Sellers to consummate the transactions contemplated hereby shall be subject to
the fulfillment at or prior to the Closing Date of the following additional
conditions, except as Sellers may waive in writing: (a) Purchaser shall have
complied with and performed in all material respects all of the terms,
covenants, agreements and conditions contained in this Agreement which are
required to be complied with and performed on or prior to Closing; and (b) the
representations and warranties of Purchaser in this Agreement shall have been
true and correct on the date hereof or thereof, as applicable, and such
representations and warranties shall be true and correct on and at the Closing
(except those, if any, expressly stated to be true and correct at an earlier
date), with the same force and effect as though such representations and
warranties had been made on and at the Closing.

    

    Section 5.03.  Conditions to Obligations of
Purchaser.  The obligations of Purchaser to consummate the
transactions contemplated hereby shall be subject to the fulfillment at or prior
to Closing of the following additional conditions, except as Purchaser may waive
in writing: (a) the Sellers and the Company shall have complied with and
performed in all material respects all of the terms, covenants, agreements and
conditions contained in this Agreement which are required to be complied with
and performed on or prior to Closing; and (b) the representations and warranties
of Sellers and the Company in this Agreement shall have been true and correct on
the date hereof or thereof, as applicable, and such representations and
warranties shall be true and correct on and at the Closing (except those, if
any, expressly stated to be true and correct at an earlier date), with the same
force and effect as though such representations and warranties had been made on
and at the Closing.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
VI

    

    Indemnification

    

    Section 6.01.  Indemnification of
Sellers.  Subject to the terms and conditions of this Article
VI, Purchaser agrees to indemnify, defend and hold harmless Sellers, their
respective affiliates, its respective present and former directors, officers,
shareholders, employees and agents and its respective heirs, executors,
administrators, successors and assigns (the “Seller
Indemnified Persons”), from and against any and all claims, liabilities
and losses which may be imposed on, incurred by or asserted against, arising out
of or resulting from, directly or indirectly:

    

    (a)           the
inaccuracy of any representation or breach of any warranty of Purchaser
contained in or made pursuant to this Agreement which was not disclosed to
Sellers in writing prior to the Closing; provided that no such
notification shall be deemed to waive or abrogate any right of Sellers with
respect to conditions to Closing in Section 5.02;

    

    (b)           the
breach of any covenant or agreement of Purchaser contained in this
Agreement;

    

    (c)           any
claim to fees or costs for alleged services by a broker, agent, finder or other
person claiming to act in a similar capacity at the request of Purchaser in
connection with this Agreement; or

     

    (d)          
the conduct of the business  of the Company after the date of
Closing;

    

    provided, however, that
Purchaser shall not be liable for any portion of any claims, liabilities or
losses resulting from a material breach by Sellers of any of its obligations
under this Agreement or from any Seller Indemnified Party’s gross negligence,
fraud or willful misconduct.

    

    Purchaser
shall conduct the defense of such claims. Sellers agree to immediately notify
Purchaser of any claims and to cooperate with Purchaser’s defense of the claims,
at Purchaser’s expense. Sellers further agree to retain all records of the
corporation, including but not limited to all contracts with customers effective
before the closing date so that the records may be available to Purchaser in
conduct of the defense against any such claims.

    

    Section 6.02.  Indemnification of
Purchaser.  Subject to the terms and conditions of this Article
VI, from and after the Closing, Sellers agree to indemnify, defend and hold
harmless the Purchaser, its respective affiliates, its respective present and
former directors, officers, shareholders, employees and agents and its
respective heirs, executors, administrators, successors and assigns (the “Purchaser
Indemnified Persons”), from and against any and all claims, liabilities
and losses which may be imposed on, incurred by or asserted against any
Purchaser Indemnified Person, arising out of or resulting from, directly or
indirectly:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a)           the
inaccuracy of any representation or breach of any warranty of the Sellers or the
Company contained in or made pursuant to this Agreement which was not disclosed
to Purchaser in writing prior to the Closing; provided that no such
notification shall be deemed to waive or abrogate any right of Purchaser with
respect to conditions to Closing in Section 5.03;

    

    (b)           the
breach of any covenant or agreement of Sellers or the Company contained in this
Agreement;

    

    (c)           the
conduct of the business of the Company prior to the Closing; or

    

    (d)           any
claim to fees or costs for alleged services rendered by a broker, agent, finder
or other person claiming to act in a similar capacity at the request of the
Seller in connection with this Agreement;

    

    provided, however, that
Sellers and the Company shall not be liable for any portion of any claims,
liabilities or losses resulting from a material breach by Purchaser of its
obligations under this Agreement or from a Purchaser Indemnified Person’s gross
negligence, fraud or willful misconduct.

    

    Sellers
shall conduct the defense of such claims. Purchaser agrees to immediately notify
Sellers of any claims and to cooperate with Sellers defense of the claims, at
Sellers expense.

    

    ARTICLE
VII

    

    Miscellaneous

    

    Section 7.01.  Notices.  Any
and all notices, requests or other communications hereunder shall be given in
writing and delivered by: (a) regular, overnight or registered or certified mail
(return receipt requested), with first class postage prepaid; (b) hand delivery;
(c) facsimile transmission; or (d) overnight courier service, to the parties at
the following addresses or facsimile numbers:

    

    

    
      
        
          
            	
                    (i)
      if to Seller, to:

                  	
                    David
      M. Loev and MaryAnne McAdams

                  
	 
      	
                    c/o
      The Loev Law Firm, PC

                  
	 
      	
                    6300
      West Loop South, Suite 280,

                  
	 
      	
                    Bellaire,
      Texas 77401

                  
	 
      	
                    Telephone
      Number:  (713) 524-4110

                  
	 
      	
                    Facsimile
      Number:  (713) 524-4122

                  
	 
      	 
      
	 
      	 
      
	
                    (ii)
      if to Purchaser, to:

                  	
                    Archetype
      Partners, LLC

                  
	 
      	
                    Five
      Concourse Parkway

                  
	 
      	
                    Suite
      2925

                  
	 
      	
                    Atlanta,
      GA 30328

                  
	 	Attention:
      Bryan Crutchfield

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        
          	
                  (ii)  Copies
      to:

                	
                  The
      Loev Law Firm, PC

                
	 
      	
                  6300
      West Loop South, Suite 280,

                
	 
      	
                  Bellaire,
      Texas 77401

                
	 
      	
                  Telephone
      Number:  (713) 524-4110

                
	 
      	
                  Facsimile
      Number:  (713)
524-4122

                

        

      

    

    

    or at
such other address or number as shall be designated by either of the parties in
a notice to the other party given in accordance with this Section
7.01.  Except as otherwise provided in this Agreement, all such
communications shall be deemed to have been duly given: (A) in the case of a
notice sent by regular or registered or certified mail, three business days
after it is duly deposited in the mails; (B) in the case of a notice delivered
by hand, when personally delivered; (C) in the case of a notice sent by
facsimile, upon transmission subject to telephone confirmation of receipt; and
(D) in the case of a notice sent by overnight mail or overnight courier service,
the next business day after such notice is mailed or delivered to such courier,
in each case given or addressed as aforesaid.

    

    Section 7.02.  Benefit and
Burden.  This Agreement shall inure to the benefit of, and
shall be binding upon, the parties hereto and their successors and permitted
assigns.

    

    Section 7.03.  No Third Party
Rights.  Nothing in this Agreement shall be deemed to create
any right in any creditor or other person not a party hereto (other than the
Purchaser Indemnified Persons) and this Agreement shall not be construed in any
respect to be a contract in whole or in part for the benefit of any third party
(other than the Purchaser Indemnified Persons).

    

    Section 7.04.  Amendments and
Waiver.  No amendment, modification, restatement or supplement
of this Agreement shall be valid unless the same is in writing and signed by the
parties hereto.  No waiver of any provision of this Agreement shall be
valid unless in writing and signed by the party against whom that waiver is
sought to be enforced.

    

    Section 7.05.  Assignments.  Purchaser
may assign any of its rights, interests and obligations under this Agreement and
must notify Sellers in writing.

    

    Section 7.06.  Counterparts.  This
Agreement may be executed in counterparts and by the different parties in
separate counterparts, each of which when so executed shall be deemed an
original and all of which taken together shall constitute one and the same
agreement.

    

    Section 7.07.  Captions and
Headings.  The captions and headings contained in this
Agreement are inserted and included solely for convenience and shall not be
considered or given any effect in construing the provisions hereof if any
question of intent should arise.

    

    Section 7.08.  Construction.  The
parties acknowledge that each of them has had the benefit of legal counsel of
its own choice and has been afforded an opportunity to review this Agreement
with its legal counsel and that this Agreement shall be construed as if jointly
drafted by the parties hereto.  In this Agreement words importing the
singular number include the plural and vice versa; words importing the masculine
gender include the feminine and neuter genders. The word “person”
includes an individual, body corporate, partnership, trustee or trust or
unincorporated association, executor, administrator or legal
representative.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section 7.09.  Severability.  Should
any clause, sentence, paragraph, subsection, Section or Article of this
Agreement be judicially declared to be invalid, unenforceable or void, such
decision will not have the effect of invalidating or voiding the remainder of
this Agreement, and the parties agree that the part or parts of this Agreement
so held to be invalid, unenforceable or void will be deemed to have been
stricken herefrom by the parties, and the remainder will have the same force and
effectiveness as if such stricken part or parts had never been included
herein.

    

    Section 7.10.  Effect of Facsimile and
Photocopied Signatures. This Agreement may be executed in several
counterparts, each of which is an original.  It shall not be necessary
in making proof of this Agreement or any counterpart hereof to produce or
account for any of the other counterparts.  A copy of this Agreement
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 Agreement shall be effective as an original for all
purposes.

    

    Section 7.11.  Remedies.  The
parties agree that the covenants and obligations contained in this Agreement
relate to special, unique and extraordinary matters and that a violation of any
of the terms hereof or thereof would cause irreparable injury in an amount which
would be impossible to estimate or determine and for which any remedy at law
would be inadequate.  As such, the parties agree that if either party
fails or refuses to fulfill any of its obligations under this Agreement or to
make any payment or deliver any instrument required hereunder or thereunder,
then the other party shall have the remedy of specific performance, which remedy
shall be cumulative and nonexclusive and shall be in addition to any other
rights and remedies otherwise available under any other contract or at law or in
equity and to which such party might be entitled.

    

    Section 7.12.   Applicable
Law.  THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS,
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES
THEREOF.

    

    Section 7.13.  Submission to
Jurisdiction.  Each of the parties hereby: (a) irrevocably
submits to the non-exclusive personal jurisdiction of any Texas court, over any
claim arising out of or relating to this Agreement and irrevocably agrees that
all such claims may be heard and determined in such Texas court; and (b)
irrevocably waives, to the fullest extent permitted by applicable law, any
objection it may now or hereafter have to the laying of venue in any proceeding
brought in a Texas court.

    

    Section 7.14.  Expenses; Prevailing Party
Costs.  The Seller, the Company, and Purchaser shall pay their
own expenses incident to this Agreement and the transactions contemplated hereby
and thereby, including all legal and accounting fees and disbursements, and
Seller shall be solely liable for any and all expenses of the Seller and/or the
Company which are incident to this Agreement and the transactions contemplated
hereby and thereby (other than customary general, administrative and overhead
expenses incurred in the ordinary course of
business).  Notwithstanding anything contained herein or therein to
the contrary, if any party commences an action against another party to enforce
any of the terms, covenants, conditions or provisions of this Agreement, or
because of a breach by a party of its obligations under this Agreement, the
prevailing party in any such action shall be entitled to recover its losses,
including reasonable attorneys’ fees, incurred in connection with the
prosecution or defense of such action, from the losing party.

    

    Section 7.15.  Entire
Agreement.  This Agreement sets forth all of the promises,
agreements, conditions, understandings, warranties and representations among the
parties with respect to the transactions contemplated hereby and thereby, and
supersedes all prior agreements, arrangements and understandings between the
parties, whether written, oral or otherwise.

    
 

    

    

    [Remainder
of page left intentionally blank.  Signature page
follows.]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN WITNESS WHEREOF, the
parties have duly executed this Agreement as of the day and year first above
written.

    

    
      
        
          
            	 
      	
                    “SELLERS”

                  
	 
      	 
      
	 
      	 
      
	 
      	
                    /s/
      David Loev

                  
	 
      	
                    David
      M. Loev

                  
	 
      	 
      
	 
      	
                    /s/
      MaryAnne McAdams

                  
	 
      	
                    MaryAnne
      McAdams

                  
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                    “COMPANY”

                  
	 
      	 
      
	 
      	
                    RX
      Scripted, Inc.

                  
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                    /s/
      MaryAnne McAdams

                  
	 
      	
                    MaryAnne
      McAdams

                  
	 
      	
                    President

                  

          

        

      

    

    

    

    

    “PURCHASER”

    

    

    Archetype Partners, LLC

    By: /s/ R. Bryan Crutchfield

    

    Printed
Name: R. Bryan
Crutchfield

    

    Its:
Principal

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