EXHIBIT 10.16
LETTER OF CREDIT GUARANTEE
VIPER MOTORCYCLE COMPANY
GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION
$100,000 CREDIT GUARANTEE
This agreement is between Xxxxx X. Xxxxxxxx, III ("Guarantor") and Viper
Motorcycle Company, a Minnesota corporation ("Viper"). Viper Motorcycle Company
is hereby offering to pay 18% annual interest on any amount of the Letter of
Credit guarantee as consideration for a one hundred thousand dollar ($100,000.00
irrevocable Letter of Credit with General Electric Commercial Distribution
Finance Corporation, on behalf of Viper's dealer floor financing program. Viper
will pay the interest payment on a monthly basis, computed, using simple
interest. This represents a monthly interest payment to Guarantor of $1,500.00,
payable each month the Letter of Credit is issued, for the maximum of twelve
(12) month's.
This credit guarantee will be enforced twelve (12) month's from date of
execution of the Letter of Credit. Any draws on the Letter of Credit will be
repaid within 60 days upon activation of credit line. The title motorcycle
activating the credit line shall be the collateral of Xxxxx X. Xxxxxxxx, III.
In the event of the credit line is drawn upon, Viper will issue fifteen
thousand (15,000) warrants, exercisable at two dollars fifty cents ($2.50) per
share of common stock. Furthermore, if Viper utilizes over fifty thousand
dollars ($50,000) of the credit line, an additional fifteen thousand (15,000)
warrants will be issued, exercisable at the Initial Public Offering price for
each share of common stock, for a period of three years from the issuance of
warrants.
Notices. All notices to be given hereunder shall be delivered or mailed
to Viper Motorcycle Company c/o Xxxxx Xxxxxxxxx, CFO or Xxxx Xxx, VP of
Corporate Development at 0000 Xxxxxxxxxx Xxxxxxx, Xxx Xxxx, XX 00000 (or at such
substituted address notified to Guarantor by Viper); and in the case of
Guarantor, to the address written below (or at such substituted address notified
to Viper by Guarantor).
IN WITNESS WHEREOF, Viper has caused this credit guarantee and warrant
certificate to be signed by its duly authorized officer as of the aforesaid date
of issuance.
VIPER MOTORCYCLE COMPANY
By /s/ Xxxx Xxx
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Its Vice President/Director
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Date 02/13/04
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Line of Credit Guarantee: Xxxxx X. Xxxxxxxx, III February 13, 2004
VIPER MOTORCYCLE COMPANY
AGREEMENT OF GUARANTOR:
Guarantor hereby confirms and agrees to any representations made in writing by
Guarantor in this document.
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Signature of Guarantor
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Joint Guarantor, if any
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Printed or Typed Name of Guarantor(s)
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Address of Guarantor
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City State ZIP
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