||RELATED PARTY TRANSACTIONS
Van Den Berg, a director of the Company, guaranteed a $250,000
credit facility we obtained from a banking institution, which was
established in order to purchase inventory parts and components for
upcoming commercial production of Viper motorcycles. In
consideration for Mr. Van Den Berg providing this guaranty, we
issued him 25,000 shares of our common stock. This line has been
paid completely in early January 2011.
Company entered into a loan conversion with Robert Van Den Berg.
The parties had a $130,000 loan which $50,000 was converted into
preferred shares and $80,000 was extended. The Preferred Shares was
converted at $.75 or 66,667 shares. The remaining loan carries an
interest rate of 8%, and no interest has been paid.
November 21, 2011, the Viper Performance Company entered into a
secured inventory financing agreement for $152,000 with Wayne
Nelson and Patrick Moloney. The loan carries a 12.0% annual
interest rate, calculated and payable quarterly, with a balloon
payment due June 2012. 500,000 warrants were issued to purchase
common stock for $0.15 per share with the loan agreement as finance
fees. The loan is collateralized by inventory valued at $165,900 as
of December 31, 2011.