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Vector Motors Corporation 1

Business Plan - 2007-2011

Contact: Gerald A. WiegertVector Motors Corporation

400 N. Marine Ave.Wilmington, CA 90744

Tel: 310-522-6610Fax: 310-522-6611

E-Mail: [email protected]

2 Vector Motors Corporation

VMC7AB07


Gentlemen,

I am sending you this Vector Motors Corporation (VMC) cover letter and executive summary regard-ing the new Vector Avtech series of high performance exotic supercars for your review. VMC is devel-oping a new American Supercar for the Exotic Sports Supercar (ESS) market segment. VMC, a new American sports car company, is positioned to accelerate prototype and pre-production activities on two Vector Avtech Supercar models, a coupe and a roadster. Major design, engineering, and produc-tion tooling have been developed and several parts and components are ready to go to subcontrac-tors and vendors. Bill-of-materials definition and key vendors have been identified and selected for first year unit build out.

The global supercar market is a multi-billion-dollar annual market that continues to expand. The Vector Avtech is a breakthrough mid-engine machine for the US and global supercar market. The principal difference between the Vector Avtech and all other supercars is that it is American made and utilizes an advanced modular systems approach for design, engineering, drivetrain, and materials technology and is the only automobile to feature and incorporate aviation and aerospace technology in its design. The Vector Avtech Supercar incorporates huge interior space accommodation and su-perior passenger comfort for extra large drivers/owners (including three abreast seating capability), racecar performance, handling, acceleration, and safety features. The exterior design and cockpit of a Vector Avtech has the look and feel of an advanced tactical fighter aircraft.

VMC has designed and developed the Vector Avtech to fill an under exploited niche in the exotic per-formance sports car marketplace. The Vector Avtech is a supercar that combines the ease of use and maintenance of a high volume sports car with the excitement of an American Jet fighter and perfor-mance of a racecar. Vector Motors is the only independent U.S. manufacturer to utilize race-proven system of exclusive American designed, engineered, and manufactured engines and transmissions, for use in an all-new mid-engine, cutting edge luxury supercar line, designed to compete in the high-end segment of the global sports car market.

VMC is ready to move forward on its Business Plan to complete within six months, its first pre-produc-tion Avtech prototypes for testing and public exposure and expects to take orders and initiate limited production within 12 to 18 months for the 2006-2008 model year. Approximately 500 automobile dealers and distributors worldwide have been identified as suitable candidates to market and sell Vector Motors Supercars. Only a limited number of qualified dealerships out of hundreds that are qualified will be chosen to sell our new cars.

Early stage Vector automobiles have been featured on many international TV shows and at world-class automotive events such as the prestigious Geneva International Auto Show where they were the stars of the show. Collectively, the TV programs, promotional events and other media exposure have reached over 1 billion people in over 100 countries. The new Vector Avtech production models have yet to be shown to the media or the public. When they are exposed Vector Motors and it’s cars will generate an incredible “buzz” and a frenzy of interest in automotive, main-stream and luxury life-style media.

The United States is the largest automotive sports car and exotic supercar market in the world. The Vector Avtech fits this prestigious market segment perfectly with a unique and distinctive blend of aerospace-engineered technology applied to a luxury exotic automobile with affordable service and maintaince capability, high-style and ultra-high-performance. The Vector Avtech is a sophisticated “made in the USA” supercar for the American and offshore Supercar market segment.

We look forward to talking with you about the Vector Motors business opportunity. Thank you for your consideration of this unique and exciting automotive investment. We are hopeful that you can partici-pate with us in the founding and financing of this new American automotive venture. Please call me personally to gain more insight on our new VMC Vector/Avtech WX-8 supercar.

Sincerely

Gerald WiegertChairman & Founder


Table of ContentsExecutive Summary 9.

VMC Modular Vehicle Engine System (VMVES) 10.

Products 12. Vector Motors Corporation and the Vector Avtech WX8-C 12. WX8-R 13.

Engineering, R & D 14. Vector Avtech Modular Mid Engine U.S. Made Drivetrain Technology 14. Product Development 15.

Engineering 15. Styling & Design 15. Prototyping 15. Testing 16. Vector Avtech Supercar Design 17. Vector Avtech WX8-C 17. Vector Avtech WX8-R 17. Scheduling 18. Manufacturing Engineering 18. Tooling 19. Certification 19. Future R&D: New Vehicle Research 20.

The Supercar Market 21. Market Overview 21. Current Market 22. Market Size 23. Consumer Profile 23. Competition 24.

Marketing Plan 25.Promotions and Advertising 25.Direct Mail 26.Internet Marketing 26.Endorsements 26.Publications 27.Public Relations 28.Special Events 28.Sponsorship & Alliances 28.


Ancillary Revenue and Merchandise 30.Licensing Vector And Avtech Aero-Theme 30.Vector Avtech Supercar Rental Division 30.Dealer Development Program 30. USA 31. Canada 31. Europe 31. Arabian Gulf 31. Asia 31.

Satellite Service Centers 32. Certified Service Training Seminars 32. Service and Warranty 33. Service Capability Expansion 33. Warranty Policies 33.

Manufacturing Plan 34. Manufacturing Strategy 34. Manufacturing Process 35.

Chassis 35. Body 35. Assembly 35. Quality Control 36. Pre-delivery and final out process 36. Facilities 36. Vector Motors 1st Phase Manufacturing Requirements 37.

Management 38. Methodology 38. Information Technology Management 38. Management Personnel 39

Financial Plan 42.

Summary 43.

Appendix 45.


Executive Summary

Company-- Vector Motors Corporation (VMC) was formed to design, engineer and assemble the world’s fastest and most advanced performance automobiles. The company’s basis for establishing a successful forward thinking “aeromotive” company will be through the use of superior technology, marketing and performance. The successful end result will be directly related to the use of advanced technology, materials and systems developed by leading US aircraft and aerospace companies, as well as performance systems related to high-power offshore powerboat racing, road racing and drag racing. No other automobile company has aspired to create such a Hyper-Performance automobile engineered to reach the pinnacle or apex of the performance motorcar market. VMC will achieve these abilities through the use of such proven technologies integrated into a collectible, functional automotive art form. The term “Vector” is defined by VMC as hyper-tech with, “force, velocity and direction in space.” The term “Avtech” is for aviation technology. Both definitions are the basis for the foundation and future success of the new VMC “Vector-Avtech” Car Company.

Problem-- Current exotic luxury and super cars are compromises that are controlled by large automobile companies. Virtually none of these companies’ management has ever started an auto company or are capable of designing and building an automobile of their own design that would be admired or successful in the market. Yet, these executives who generally inherent their positions make the decisions on what most of us buy and drive. All great name brand fashion products are headed by name brand designers who manage, direct and control their works of art, such as watches, jewelry, clothing, architecture, yacht design and even aircraft. VMC will create a new cutting edge company made up of forward thinkers to produce automotive excellence and we will succeed at challenging and surpassing the best of the best automobile companies in the world.

Solution-- The R&D think-tank was widely known to have been created by the Lockheed Aircraft Company “Skunk Works” in California. VMC will follow the “Classified Black Project” and “Rand Corporation. think-tank” concept. VMC will solicit and collect the best minds in various fields to create the most remarkable automobile products possible, creating and offering custom show car or dream-car like designed automobiles, that can be purchased by both wealthy cash paying enthusiast-consumers as well as those who will buy their dreams on credit.

Market-- Vector management will not endure to create just another prestige sports-luxury automobile company, but intends to develop the most profitable of all low-production auto companies. Porsche is currently the most profitable of low volume auto companies. VMC will not design or engineer any new vehicle unless it has extraordinary design, style and artistic significance. The company’s automobiles will be a platform to utilize advanced design and technologies of all types and VMC will stage and position its automobiles be the featured cars and stars of all relevant auto and other shows and events. The world market for automobile sales exceeds 100 billion USD/year with over 50 million units being built annually. The automobile is the most important consumer product in the world and the most prestigious. It is the one product that gives a man or woman mobile pleasure, a means to travel to places of work or leisure and that motivates him or her every few years to again, purchase the next best appealing automotive dream machine.

Sales-- As a new type of specialty car company the VMC WX series of exceptional Vector-Avtech vehicles will be sought after by the most prestigious and qualified sales outlets. VMC products ultimately will be sold and distributed through hundreds of auto sales dealerships throughout the world. In the US alone there are over twenty thousand (20,000) new car dealers as well as dealers who sell expensive previously owned vehicles. The independent dealers cannot get a new car franchise/dealership because the good ones are already taken, allocated and or are unavailable, affording VMC hundreds, even thousands more dealers to choose from. These dealers are well financed, have bank flooring and great showrooms and locations in affluent areas around the world. VMC expects no difficulty selling all of its custom built production Vector-Avtech super cars each year.

Financing-- Vector Motors is desirous of initially raising $150 M USD to achieve its business plan objectives for the this new extraordinary Designer Brand Auto Company, to build or secure the necessary team, showroom, and R&D, equipment and assembly facilities. VMC management’s 5-year business plan calls for building up to 500 per year initially, and ultimately to build up to 5,000 units per year, which would equal the production and sales of Ferrari automobiles, with VMC sales exceeding the Billion dollar per year mark. By comparison, the GM Chevrolet Corvette brand has sold over 40,000 units per year, proving the demand for a US built sports car.

Team-- VMC has assembled a professional management team with the prerequisite skills to launch VMC into the future. Professional recruiting throughout the US and the world will be required to select and staff VMC to a level that will create an unequaled design, engineering and management team to establish and launch our unique ”Aeromotive Motorcar Company of the Future.” VECTOR = S FORCE + VELOCITY + DIRECTION IN SPACE.


WX8 twin Supercharged 1,200 hp engine

6 speed sequential shift trans axel


The new Vector Avtech WX-8 will raise the bar on the ultimate group of automobiles currently categorized as supercars. The new Vector Avtech WX-8 is intended to raise this bar so high that other companies will be hard pressed to reach or even approach the apex of performance achievable by the ultimate high-end 300 mph capable model of the Vector WX-8. The phenomenal level of performance targeted by Vector Motor’s can only be attained by doubling the current levels of horsepower currently achieved by supercar competitors. It has taken foreign exotic car companies roughly 15 years to reach the original Vector W8 twin-turbo’s horsepower and acceleration capabilities. This includes the current Ferrari Enzo, Lamborghini’s and Porsche GT Carrera super car. VMC will achieve this objective using state-of-the-art American offshore marine engine technology and American drag racing technology. This awesome combination of technologies will provide Vector WX-8 with horsepower capabilities that will range from 900 to 1,500+ hp from off-the-shelf proven reliable high-performance parts, components and race-engine building techniques. This proven American approach to become the “King Kong-Gorilla” of supercar world, and will require Vector to create its own classification or trade name for this extreme performance road machine. The plan to build a custom order “Mad Max” machine for discriminating sophisticated clientele that will be capable of running over 300 mph at the Bonneville salt flats, and will be capable of running the quarter mile at over 160 mph in the 9’s and reach 0 to 60 in under three seconds. The basis for the new Vector WX-8’s extreme performance is the dual supercharged/or turbocharged custom manufactured high output cylinder-block and heads recently created by classified & confidential supplier. This Engine Technology in its ultimate form will be capable of generating up-to 2,000 hp! Any comparison with existing foreign or domestic super cars is irrelevant. This new Vector will shatter any current production minded auto company’s thoughts of equaling or surpassing this level of Vector Avtech WX-8 + Hyper-Performance. Vector will also offer a less extreme Vector model with 650 to 800hp. All of this performance will be cultivated to give Vector the exclusive right to unachievable, unequaled, bragging rights over any foreign or domestic made super car. The new Vector WX-8 will be positioned to dominate the covers of any and all magazines intended for men or women, who purchase performance automobiles. All other publications, TV shows, and high visibility events will desire to expose this new “UAO” (Unapproachable Object) to their affluent audiences. This ultra-extreme performance system will be at the “Apex” of the automotive world. Other Vector models will share the Ultimate Vectors radical leading-edge image and architecture. Other engine options in more sane horsepower zones will make-up the bulk of Vectors orders and arsenal of ultra-performance supercars. Other experiments in “power-packaging” systems in the near future could include advanced Turbodyne, turbo-supercharged diesel power, state-of-the-art turbo-supercharging, high-tech electric and even hydrogen fuel cell technology. Vector will joint venture with cutting-edge aircraft, aerospace, automotive, and research companies and universities who are, expanding the technology of the past, and creating all new technologies to provide logical systems for the future. VMC will be positioned to take advantage of these practical, usable, new emerging technologies. Vector is defined as “Force, Velocity and Direction in Space” and VMC is geared to create and materialize on its Vision-For-The-Future

VECTOR MOTORS WX-8 SUPERIORITY


VMC Modular Engine System (VMES)

Vector Motors Corporation (VMC) has developed a unique systems approach to market and sell high-style, high-performance, exotic supercars direct to the automobile consumer, dealer, and distributor. VMC Corporation plans to enter the high-end automobile sports car market in the United States. VMC will have the choice to market the Vec-tor Avtech Supercar through the ex-tensive foreign and domestic dealer-ship network already in place in the United States and overseas. In the U.S. alone there are over 20,000 GM, Ford, Chrysler and other dealers af-

fording VMC a very large selection of dealers to choose from for the sale of its exclusive new automobiles. No other small independent sports car manufacturer will have anywhere near the distribution potential of VMC. VMC can accomplish expanded distribution and sales by having a port-folio of Vector models by incorporating different engine choices that can be sold through dealerships that sell and service a certain engine type or automobile brand.

To sell and service the new high-tech-nology Vector Avtech models, the Vec-tor Modular Engine System (VMES) was created to allow Vector Avtech Super-cars’ chassis platform to be powered by a choice of several of the major auto manufacturer’s engine systems. For example, the General Motors new generation V-8, Ford Motor Company 32 valve modular V-8 engines, the Chrysler Viper V-10 and new Hemi V-8 engines are all relatively low cost, pro-duction engines that would allow VMC Supercars to offer buyers a cost ef-fective, off-the-shelf performance en-gine choice, for its unique VMES VMC Supercars. These U.S. manufactured engines can be left unmodifi ed for the entry level, lower base price VMC cars,

An automotive marketing system to signifi cantly increasesales and serviceability.


and modifi ed by supercharging or turbo-charging for the higher priced, higher performance, and more exclusive VMC models. The Vector Motors Supercar is confi gured for fi nal assembly in North America with certain offshore parts integration provided to help reduce costs of manufacturing and to lower the typically higher priced entry initial barrier initial cost of a true upper end supercar for VMC customers. The VMVES approach for power train choice and fl exibility has the potential to provide VMC with a much broader sales and service distribution system than any other exotic or supercar companies currently in the market. VMVES strategy could pro-vide a broader and larger range of dealers for VMC to sell through across various sports car buyer demographics in the United States and offshore by custom tailoring the Vector Supercar engine power choice to a large auto dealer network of a particular auto engine manufacturer/supplier.


ProductsVector Motors Corporation and the

Vector Avtech WX8 CoupeVector and Avtech, the two corporate and automotive product trade names, are defined as a merger of Automotive and Aviation Technology. The name designation, WX8 is applied to all models of this styling and de-sign configuration with an American made ultra-high-performance V-8 en-gine. The Vector Avtech WX8’s chassis is structurally similar to the feder-ally certified Vector W8 and utilizes most of its dimensional and structural design. The Vector Avtech is a mid-engine supercar, styled to express the high-style functional architecture of speed and maneuverability on the road or track. The low, sleek and stealthy appearance speaks with author-ity. The integrated rear wing is an aerodynamic airfoil that controls the aft airflow, creating race car-like down-force for high-speed stability. Visually aggressive side intakes that ram air into the engine’s cooling system are positioned on either side of the Avtech’s electronically fuel-injected, sev-en-liter V-8 aluminum engine. The detail design and configuration of the Vector Avtech will be related to options selected at the customer’s choice.

Designed with a 108 inch wheel-base, the WX8 is equipped with a race-car-like, passenger safety cage. The all-new advanced front suspension system has been CAD engineered and developed by experienced race car engineers for zero tire scrub and precision control in all maneuver-ing situations. A large front and rear luggage compartment has been provided for utility and practicality. The aft deck trunk provides useful storage space and also assures aerodynamic stability at high speed. The optional 1,200 hp Vector Avtech 7 liter twin supercharged engine and vehicle weight of approximately 3,000 pounds should allow the Vector Avtech to accelerate from 0 to 60 mph in 2.8 seconds or less, reach 160+ mph in the quarter mile with a top speed that should exceed 270 mph.

Vector Avtech pricing for the WX8 is determined by adding options to the base price.WX8 standard equipment includes:

• Aluminum alloy V-8, 600 plus horsepower, 600 plus ft. pounds of torque fuel-injected engine. (Single or dual supercharged versions optional.)• 18 to 20 inch three-piece custom wheels• Advanced Tactical Fighter aircraft-like instrumentation, electrical wiring and circuit breakers• Full leather interior• Manual transmission • Aerospace engineered structure with full roll cage

* Options and custom features could add $50,000 to $100,000 plus to the Vector Avtech base price.


Vector Avtech WX8-RoadsterThe WX8-R is engineered as an open top roadster, which makes it visually different from the WX8 coupe. It utilizes the same drivetrain and offers the same engine options with a rigidized chassis structure. The cockpit and en-gine compartment of the WX8R are basically identical to the WX8-C.

Pricing of the WX8-R is determined by adding the cost of factory-installed options to the standard projected retail price of $249,000.

WX8-R standard equipment includes:

• Aluminum alloy V-8, 600 plus horsepower, 600 plus ft. pounds of torque fuel-injected engine. (Single or dual supercharged versions optional.)• three-piece custom race engineered wheels• ATF aircraft-like displays, electrical wiring and circuit breakers• Full-leather interior• Manual transmission• Aerospace engine and chassis structure

*Options and custom features could add $50,000 to $100,000 plus to the base price.


Engineering, R & DVector Avtech WX8 Modular Mid-Engine

U.S. Made Drivetrain Technology

The Vector Motors Corporation business plan is based upon the company’s strategy to advance and diversify its mid-engine drivetrain technology. At present, the Company plans to utilize two drivetrain systems. One sys-tem is VMC’s 7 liter aluminum small block race engineered V-8 engine, utilizing off-the-shelf aftermarket internal components. The ignition is a high-voltage direct-fi re type, controlled by a proven central engine man-agement computer. The large diameter stainless steel exhaust is man-aged by a split into paired catalytic converters and low-pressure silenc-ers. The engine package includes a high-output alternator, high-volume coolant pump, a high-capacity air conditioning compressor, and cooling system, and various sensors and controls. An electrically shifted multi-speed fl uid coupling is a chain-driven, side-mounted, manual/automatic transmission, and is coupled to a VMC engineered torque-sensing limited-slip differential. De Dion rear suspension and trailing arms control rear wheel traction on the big block 7 liter mounted mid-engine Vector Avtech WX8 Supercar.

A proprietary Vector Avtech engine would be more costly to produce in small numbers than choosing a Vector modifi ed high volume, off-the-shelf, Detroit manufactured engines. Cost reductions for the Vector Avtech will be achieved partly by utilizing outsourcing, subcontracting and a lower-cost off-the-shelf engine, transmission, and proven off-shore sourced pro-duction components.

VMC will establish a working relationship with several U.S. based engine builders and component manufacturers, to develop a new, lower-cost Ad-vanced Technology Vector Engine (A.T.V.E). The objective is to purchase an exceptionally light A.T.V.E. at considerably less cost than current ex-pensive foreign-built high RPM 10 – 12 cylinder engines like those used by Ferrari, Lamborghini, and Porsche. Avtech’s management believes that a positive strategic alliance will benefi t VMC by linking Detroit based automobile manufacturers and VMC through the purchase of engines and components while targeting dozens of American and foreign exotic car dealerships, to provide sales, support, and per-form Vector Avtech service and

maintenance.


Product Development1. EngineeringVMC is positioned, from an engineering standpoint, to be the American automotive marquee supercar manufacturer in terms of design, perfor-mance, and desirability. The big three automotive companies (GM, Chrys-ler, Ford) in the United States, do not compete directly with VMC but can provide VMC with proven high-performance engine options. A version of the Avtech six-speed trans axle will allow the Vector Avtech driver to shift by pressing a button or ratcheting the gears electronically to activate the clutch as in the original innovative Vector W8 and F1 racing cars. VMC has designed the Vector Avtech to integrate the use of state-of-the-art ABS braking systems, advanced front and rear suspension, and body compo-nents of laminated carbon, kevlar, and glass fiber reinforced plastics (FRP) composite construction into its advanced Supercar its. Management has experience in all of the tasks that are used in this type of vehicle design and manufacture. To complement VMC’s in-house engi-neering staff, consulting engineers are also used for their expertise in spe-cific areas such as engine and drivetrain design and analysis. Once new vehicle systems have been designed, prototype parts are quickly made in the Company’s R&D fabrication shop or from other out-of-house Southern California shops.

2. Styling & DesignThe effort to achieve the best possible aesthetics for Vector Avtech is an ongoing process. The Vector Avtech WX8 is a car with extremely strong character and an original attractive distinctive design. The all-new Wieg-ert designed vehicle will lend itself to years of timeless design and future public acceptance. The addition of an all new longitudinally mounted twin supercharged (or turbocharged) V-8 engine, multi-speed sequential gearbox, completely re-designed suspension, and race proven braking en-hancements will give the Vector Avtech Supercars an unequaled high level of speed, acceleration, road handling, and drivability.

The Avtech’s interior styling is ergonomically orientated to improve exist-ing Supercars comfort and functional purpose while consistently main-taining Avtech’s “aerospace attitude.” Options include an in-dash GPS navigational system, DVD with flat panel display, “high-end” component sound system, along with electronically adjustable seats, plus the op-tion to order Avtech’s unique three abreast seating configuration. The instrumentation has been simplified to improve driver focus while on the performance edge and will include the Vector originated heads-up display (HUD) system. Future Vector Avtech’s could incorporate the option of a right hand drive (RHD) configuration for sale in countries with RHD laws. Vector/Avtech styling concepts are first generated on paper as sketches or renderings. These concepts are then carried out into a scale model or a full-size mock-up that is made from easily alterable and inexpensive


material. Once an acceptable design is achieved, a dimensionally perfect hard mock-up is made from clay or rigid foam, fiberglass, and body filler. Craftsmen skilled in this 3-D medium respond to Mr. Wiegerts specific, un-compromising directions. Then the subtleties of the shape are developed until the finished design is approved. This mock-up or ““plug”” is then corrected for symmetry and the surface finish is brought to completion. At this stage a temporary mold is made. This female mold is used to cre-ate the body parts, which are used on the first operational prototype. This entire process takes place in a separate R&D facility with a crew of three to five people. The Company currently is housed at a styling and design center facility capable of building mock-ups and prototypes of new Vector Avtech models. Digital axis laser scanned technology for making plugs and molds are utilized as appropriate from outside vendor sources.

3. PrototypingThe Company plans to construct most of its prototypes in-house to protect and control its proprietary design and help reduce cost. This work will be carried out in separate confidential R&D facilities equipped with a complete machine shop and all tools necessary to build an entire car. A small staff of highly skilled fabricators will work in conjunction with vehicle system me-chanics, designers and engineers to develop complete running vehicles, constructed on tight schedules for cost effectiveness. A prototype is only the starting point for design and is the platform on which all components and systems are tested and evaluated for Vector Avtech production. 4. TestingOnce the Vector Avtech’s prototypes become operational, test programs will be scheduled to refine the car’s mechanical systems. Many tests, such as calibration of computerized engine management systems can be carried out on the Company’s chassis dynamometer, as well as on a 1,000+hp en-gine dynamometer. Other tests require that the vehicle be driven on local roads, remote desert locations such as Death Valley or taken to available racetracks. For these efforts, the Company will purchase a large race car transporter equipped to act as an on-site mechanics shop so that test en-gineers can carry out in-field modifications testing. The transporter will double as an exhibit/display system for promotional events and shows.

5. Vector ExperienceAll of the above activities’s were managed and carried out by the original Vector Aeromotive Corporation. No task or activities for successfully ex-ecuting the development of VMC business plan are anticipated by Vector management. Having done it before, is the basis for doing it even better the next time around.


Vector Avtech Supercar Design

During the prototype test program, VMC engineers will find cost-effective solutions to production design issues that are identified without compro-mising future profitability or quality. While VMC must rely on certain components, available off-the-shelf, that were developed for mass pro-duction automobiles to minimize manufacturing costs, the Avtech’s chas-sis structure, body, suspension, and wiring harnesses are proprietary and developed specifically for the Vector/Avtech. 1. The Vector Avtech WX8-CoupeRequiring the shortest prototyping cycle possible, the WX8 coupe is a substantially re-engineered, re-bodied, and re-powered Vector Supercar. Much of the labor component of the new Vector Avtech involves the body design, so it is not surprising that the WX8 design addresses this cost problem effectively, as its new composite body should be easier and less expensive to make than European manufactured supercars. Utilization of an easily serviceable and proven Detroit-based EPA Certified engine and drivetrain will shorten our prototyping cycle while providing a significant cost savings. VMC engineers have created a redesigned new front suspension system to incorporate an off-the-shelf race-engineered system. The Vector Avtech incorporates side mounted cooling radiators, as this design location helps increase front and rear luggage and trunk space, more than any other supercar. Numerous other details of the Vector Avtech design offer both labor and component cost reduction, but the greatest potential for cost cutting is in quantity off-the-shelf purchasing from existing component suppliers, as well as outsourcing of proprietary Vector Avtech parts and components unique to the car. This procurement strategy and activity has already been initiated in the Vector Avtech WX8 prototype. 2. The Vector Avtech WX8-RoadsterTwo models of the WX8 have been defined, a roadster and a hardtop coupe. Although chassis and body details for these cars are somewhat different, a majority of the drivetrain’s mechanical and accessory components will be interchangeable. Therefore, the basic chassis platform design detail-ing is not much different from coupe to roadster. The company’s roadster will be able to accommodate larger, taller buyers because the removable rooftop can be custom made to allow for more head room clearance. The detail engineering for these models will be carried forward concur-rently with R&D and prototyping. VMC’s new engine and transmission will require very little development time, primarily because they are off-the-shelf, proven systems. The Vector Avtech roadster with a standard soft top can be sold with or without a hard removable top. A removable hard top will be an option or perhaps standard equipment, depending upon


manufacturing costs and final model pricing. The final goal is to have just one Vector model that is both a coupe and a roadster. This ultimate solu-tion gives the buyer the best of both worlds – an open car and a closed coupe.

3. SchedulingVMC engineering and marketing management has established preliminary specifications for both Vector Avtech models. Scheduling of the process activities will be done concurrently. Cost budgets will follow in quick suc-cession. Work on VMC’s own proprietary engine and the Company’s en-gine build program will begin once the first phase production financing is in place.

Manufacturing Engineering

The original Vector design philosophy focused on the synergy between automotive and aerospace technology to build the finest supercar in the world. Throughout the 1980’s, the Vector W8 evolved to become one of the most fascinating and futuristic ultra-high-performance vehicles ever built. The first production W8’s were manufactured in 1988-1989. Vector W8’s were entirely hand built with the very best no-compromise materi-als and components ever put into a production automobile. Each vehicle required hundreds of production hours and over $200,000 in production components and materials. Twenty Vector W8 twin turbo’s were built and sold to very discriminating customers.

The new Vector Avtech is a product of evolving engineering and the Vec-tor W8’s production knowledge and learning curve that emphasizes cost effective manufacturing and cost control. Component cost and production hours are projected to be less expensive than other supercars. Avtech’s Modular systems approach and “assembly only” building process are Tai-lored for subcontracting and outsourcing. Flexible manufacturing systems and continuous cost reduction analysis will facilitate efficient and profit-able operations.

VMC manufacturing engineers will look at every part and component on the finalized configuration and analyze the appropriate method of manu-facture depending on anticipated production volumes. A typical decision might be whether to design a part as fabricated metal or as a machined casting. As these decisions are made, a CAD designer will generate a fin-ished drawing which will allow the part to be bid and sourced from outside manufacturers. The original Vector Avtech prototype and its design and chassis engineering drawings will be utilized to assist in the manufacture of the production Vector Avtech. Additionally, many “off-the-shelf” parts are being utilized to reduce costs. This low-cost manufacturing philoso-phy has been adopted in the WX8 manufacturing plan.


Tooling VMC has the in-house talent and ability to construct most of its own spe-cialized jigs, fixtures, and molds for the Avtech, which will be prototyped or manufactured on site and then outsourced. Outsourcing will be used as needed. VMC components are primarily the chassis, suspension, and all composite body and interior parts. The jigs and fixtures used for the con-struction of the already engineered and constructed prototype chassis are adaptable to the production of the Vector Avtech WX8 Coupe and Road-ster. Minor changes may be made so that the same jig will be capable of building all Vector Avtech chassis. This utilization of shared tooling rep-resents a major cost reduction for starting production quickly on the two new Vector Avtech Models. As stated previously the goal is to combine both the coupe and roadster into one model. The body system design for the Vector Avtech WX8-Roadster is already in progress. A new set of body molds is necessary for both the coupe and the roadster models. A dedicated set of molds for each version will be able to support the initial planned production rate for each model. VMC is explor-ing new molding techniques, which may become more cost effective in the 250 to 500 units per year quantities that are projected for the lower-cost higher volume Vector Avtech models. At this point, outside vendors could be utilized to support VMC’s manufacturing and assembly schedules.

Certification

The original Vector W8 twin turbo body and chassis design underwent and passed all formal DOT and EPA testing and certifications. All DOT safety standards were exceeded, and in fact, all of the destructive tests such as 30 mph barrier crashes, roof crush, and door intrusion were all passed on the first try by unequalled safety margins. Careful consideration was given to the preservation and incorporation of Wiegert’s original Vector W8 chassis design and exceptional crash worthiness. As a result, minimal engineering and re-testing, if any, will be necessary for VMC compliance with federal motor vehicle standards. The Vector Avtech engine and its related fuel and evaporative systems have already been designed to meet EPA certification. A pre-certified en-gine is planned to initially power the Vector Avtech WX8 Coupe and Road-ster. The entry level Vector Avtech will derive its power from currently available certified engines such as the off-the-shelf Detroit manufactured V-8 engine with proven emissions system durability.


Future R&D: New Vehicle ResearchVMC engineers have researched high-tech automotive manufacturing, R&D, and scientifi c “Star Wars type” engineering organizations in search of new technologies for future Vector Avtech applications. Various tech-nology transfer ideas from private industry and government-funded tech-nologies are available to VMC. Management’s strategy is to choose the most appropriate cost-effective products, components, and technologies and integrate them into the Vector Motors Avtech line. Technology trans-fer, not technology research, will be Avtech’s strategy and will include the possibility of an advanced diesel, fuel cell powered vehicle or a Vec-tor Avtech electric hybrid WX-EH model, either of which would generate extraordinary press, publicity, and sales exposure. VMC has access to several strategic alliance partners who could help produce an electric mo-tor powered Vector Avtech, which would provide VMC with a high millage, green machine that would be environmentally friendly and could still be capable of extremely high performance.


Market Overview

Sales of high priced exotic supercars over the past five years have been growing steadily even with ever-rising prices. However, not all exotic cars are in the supercar category. The supercar definition is reserved for only the fastest, ultra high-performance, and most expensive cars. The new Vector Avtech and its variations will have engines in the 600 to 1,200+hp range, will accelerate from 0 to 60 MPH in under 3.0 seconds, be capable of 220+ mph straight-away speeds, and should have skid-pad numbers exceeding 1 +”G”. Performance at these levels requires a higher manu-facturing cost, a high price, and therefore more limited niche category sales quantities. VMC intends to be a limited production company, not a high volume Detroit or German style operation. VMC will take advantage of the lower volume, higher price market niche where larger companies cannot compete. Avtech’s small production “custom build” efficiencies target various price points with differentiated models to cover all sectors of the upper priced market segment. The price ranges targeted are from $275,000 to $575,000 or more. Accurate sales statistics for supercars are difficult to obtain, but useful estimates can be derived from registrations, auto magazine statistics, and published financial data. The data indicate that sales numbers have risen steadily since 1982, topping out during early 1990’s at nearly 5,000 units annually, of which about 1,200 cars (mainly Ferrari F40, F50, 512TR and Lamborghini Diablo models) were sold in the USA. Sales have increased steadily since then and are projected to increase through the next de-cade. During the past 10 years, there have been several supercar models with-held from the U.S. market, partly because of tough American EPA/DOT certification requirements. Nonetheless, worldwide sales of exotic super-cars are estimated to have topped 5,000 units. VMC management is opti-mistic about the supercar market because of limited availability, pent-up demand, and increasing worldwide wealth and affluence of the targeted growing market segment.

VMC has high expectations for the next five to ten years, particularly in the domestic market. New buyers will be looking to the auto industry for more excitement and value for their money. Accordingly, VMC intends to bring to market its all-new Vector Avtech Supercar in two or three versions, an entry-level model and an extreme model, with a targeted retail base price range of $298,000. The more expensive Ultra-Performance Vector models could be priced as high as $575,000. Dealer recruitment programs will start in the USA then expand to Europe, Asia, the Arabian Gulf and other markets driving the Company’s production output. VMC management rec-ognizes that the planned price positioning must be accomplished without a technology slip. The sophisticated supercar buyer will be seeking nov-

The Supercar Market


elty, styling, innovation, acceleration, cutting-edge electronics and a power-ful, high-performance drivetrain engineered with inherent serviceability and reliability. VMC understands that to provide increasingly advanced technology, while meeting the price challenge, it must find less labor-intensive ways to produce elegant, stylish, and uncompromising machines. To accomplish this is the key to profitability, shareholder return and a much larger market share for VMC’s future. Ferrari, Lamborghini, Porsche and others help validate supercar demand and pricing. VMC intends to penetrate and exploit the growing American supercar market, which is the largest in the world, with a high-tech American-made offering. The Company will need 24 to 36 months to reach projected unit output, financial break-even, and profitability. It took Ferrari ten years to pro-duce its first 100 cars. Ferrari’s production grew to 5,000 units by the 1990’s. VMC‘s plan requires only that it create demand consistent with its ability to produce and sell. VMC plans to supply a small portion of the supercar market segment. In less than five years, the worldwide market for exotic sports cars and supercars should top 10,000 units annually. Vector Motors expects to be a major player.

Current Market Ferrari is manufacturing and distributing its open-top Ferrari 360 Modena Spi-der in the U.S. and has released another supercar, the Enzo. Ferrari’s new 360 initially commanded a premium price of $240,000, which was roughly $60,000-70,000 over sticker. The Bugatti Veyron is a higher cost ($1.5 million USD), better performing, supercar for the street than Ferrari’s latest supercar, the Enzo, which is priced at $650,000 and is currently commanding a pre-mium price of $1,000,000 plus. Porsche’s new Carrera is priced at $450,000. The market timing is now perfect for the new Vector Avtech.

U.S. vehicles once seen as lacking quality, taste, reliability, and status, are now status symbols in many international markets. Vipers and Corvettes are in great demand in Europe and Asia based primarily upon the fact that they are inexpensive premium U.S. brands. U.S. products now carry a certain mark of distinction. This re-emergence may be tied to the international marketing of other “American Dream” products such as Pepsi, Coca-Cola, McDonalds, Levi Strauss, Harley-Davidson, Dell, Apple, and Microsoft to name a few of the U.S. products that have found significant international acceptance. The Vector Avtech WX8 with its proven high horsepower USA made V-8 en-gine (the engine of choice for most Americans) is the only U.S. manufactured supercar that can compete with Ferrari, Lamborghini, Porsche and Aston Mar-tin in the global supercar market. Furthermore, no other credible brand name American mid-engine exotic sports car company in the supercar category uses a production twin supercharged or twin turbocharged V-8. This fact alone makes the Vector Avtech the most desirable of available supercars because it is analogous with U.S. off-shore race boat and American Drag Racing engines, which are the most powerful and advanced V8 based engines in the world.


To make a rapid penetration into the market of low to mid-price supercars, VMC plans to bring forward exciting, design proven Vector Avtech models. The styling concept for the Vector Avtech WX8 has already been exception-ally well received in private showings and VMC could not hope for a better basis on which to build, launch, and produce new supercar models than on the legendary Vector W8 and Vector Avtech WX3 design. Accordingly, VMC will forge ahead with the design and tooling for the Vector Avtech WX series supercars, built over the proven Vector engineered W8 chassis platform. The new generation (GEN III) GM aluminum engine system is race proven and is similar to that of the original custom built Vector W8 engine, the new GM GEN III engine has numerous cost reducing improvements because of its high vol-ume design, this basic engine ”Vectorized” could be considered for VMC’s less expensive entry level Vector sports car. Anticipating a major rise in demand because of exciting new Vector design and new price positioning, increased Vector production should realistically permit the new Vector Avtech to be eas-ily and profitably.

Market SizeThe worldwide market for exotic supercars is expected to expand in rela-tion to the US and global economies. Automotive industry publications have indicated sales for exotics and supercars will grow to approximately 10,000 units annually, generating sales of several billion dollars (U.S.). Industry ob-servers generally agree that certain established supercar makers can look forward to long-term growth, particularly in the large U.S. market. The US market is not crowded as there is little domestic competition in the supercar market niche. The only real domestic competitors are the GM Corvette and the Dodge Viper but these automobiles are high volume sports cars priced under $85,000 and are not considered “high status” supercars. Over 30,000 “non-exclusive” “mass produced” GM Chevrolet Corvettes and Dodge Vipers are produced each year, which underscores the documented interest by the U.S. automobile consumer for high-performance, American made V8 powered sports cars.

Consumer ProfileSupercars are sold to a narrow customer base. VMC intends to access this very lucrative sector by introducing new lower cost supercar models, offering greater perceived value, higher horsepower and dramatic styling. All corpo-rate efforts will be directed towards analyzing supercar customer desires and needs. Our strategy is to focus on current owners of luxury exotic sports cars, corporate executives, government leaders, royalty, movie, music and television celebrities, current & past Ferrari, Lamborghini, Porsche, and Vec-tor owners, professional athletes, leading members of medical and legal or-ganizations, owners of large yachts, private aircraft, and art collectors. These potential buyers are already pre-qualified to be targeted as high priority pros-pects. In most cases, it is not a question of affordability. It is rather desire to possess a novelty, something unique, a piece of substantial art, and the latest creation in exotic cars. The profile for buyer candidates are; wealthy, competitive, non-traditionalist, risk-takers, self-confident, entrepreneurial, and have a desire to be seen and known for possessing the newest and hot-test consumer products and transportation toys available.


CompetitionDirect competition among supercars is not clearly defi ned. If there is one outstanding competitive quality, it is the perceived value and image of the car itself. Unlike vintage cars, which have a proven status, newly produced supercars need to have their qualities proven and tested. These qualities need to be presented in the correct forum. Credibility for a particular car relates as much to the reputation and quality of its advertising as it does to the qualities of the machine itself, as well as the designer of the car. Therefore, competition from Ferrari or Lamborghini arises more from the long-standing public awareness and reputations of these pioneering com-panies than from the high-technology excellence or respected service-ability of their products. No doubt, this established reputation accounts, at least in part, for the fact that these two Italian producers enjoy a com-bined 50 percent share of the exotic supercar market segment. However, America designs, engineers, and builds the best defense products, jet fi ghter aircraft, computers, and many other high prestige products and the management of Vector Motors is not intimidated by any of the Italian, German, or British auto manufacturers. America can and does build great U.S. built consumer and automotive products - just not in the style, price or category of the Vector.

Last year Porsche and Ferrari sold 60,000 vehicles worldwide. Approxi-mately 40 percent of all Porsche and Ferrari sales were sold in the United States. In the U.S., the Vector Avtech has competitive challenges, either real or perceived, from the following marquees, which are all rich in heritage:

Formula One race car builder McLaren-Mercedes produced the McLaren F1 Supercar at $1,000,000 each. The British built cars were over-priced and sales objectives were not met. Wiegert’s fi rst Vector Avtech WX-3 confronted both the McLaren F1 and Jaguar XJ220 across the aisle compe-tition at the Singapore and Geneva International Auto Shows. The Vector Avtech WX8 consistently drew substantially larger crowds and generated more attention and excitement than any of its European competitors.

Lamborghini Murcielago $275,000 Porsche GT2 $192,000

Vector Avtech WX8-1,200+hp C/R $575,000 Bugatti Veyron $1,450,000

Ferrari 550 Maranello $222,000 Porsche Carrera GT $450,000

Vector Avtech WX8-700HP C/R $349,000 McLaren F1 $890,000

Koenigsegg CCX $540,000 Ferrari Enzo $643,000

Aston Marton V12 Vantage $228,000 Dodge Viper GTS $ 71,000


The Vector Avtech will be marketed initially to dealers and individuals interested in purchasing higher performance supercars with ultra-exclu-sivity, reliability, and low serial numbers. The production rate of Vector Avtech cars will steadily increase during the fi rst fi ve years. Sales through dealerships will be established parallel with production capability. Dealer and consumer interest should be very high with all the expected publicity and excitement surrounding the return of Vector to the supercar market and the introduction of the new Vector Avtech WX8 models.

Substantial cost effective effort will be devoted to domestic and interna-tional marketing efforts after initiation and fi nancing of operations. Within twelve to fi fteen months of funding, the Company should be ready to meet reasonable dealership sales and order requirements and will staff a new sales and marketing department with qualifi ed professionals in order to jump-start the process required to backlog the Company with orders for Vector Avtech models. VMC will start with in-house factory direct sales to complement the establishment of an experienced dealer network. The Vector Avtech will be sold to dealers at a standard dealer discount. Di-rect sales to consumers such as sports stars and celebrities will be at the Company’s preference during the fi rst few years, as long as there is no confl ict with pre-assigned dealer territories.

Promotions and AdvertisingIt is management’s belief that the new Vector Avtech WX8 will elicit a very positive response in automotive trade publications. The Vector Avtech’s new aerodynamic body design, optional drivetrain, multi-speed sequential gearbox, and lower price point will fi ll the U.S. market void for an Ameri-can -made sports supercar. Vector Avtech PR and advertisements will be positioned in both automotive and non-automobile related publications. Qualifi ed consumers and the supercar market in general will be made aware of the company’s products and models. This will require a lim-ited and carefully targeted Vector Avtech awareness advertising campaign based on a strategy of tapping into the “broad” luxury lifestyles category of the Vector Avtech target market.

Marketing Plan


Direct MailA direct mail piece will be creatively prepared and sent to qualifi ed pri-mary prospects. Direct mail is an ideal marketing tool for a very unique, product such as the Avtech. Direct mail results are measurable and the company will be able to monitor the number of responses received. VMC has access to databases of 100,000 to 1,000,000 of the wealthiest people in the United States to analyze, single-out, and target potential Vector Avtech customers.

Internet MarketingThe VMC website has the potential for educating the public and providing a merchandising opportunity for the Company. For it to be a viable op-portunity, however, it needs to be constantly updated with new and rel-evant information. The Lamborghini website alone attracts approximately 7,000 visitors daily from around the world. Specifi c categories include, but are not limited to, a virtual showroom for Vector Avtech models and specifi cations, an online catalog of authorized Vector Avtech merchandise (T-shirts, posters, scale models, video tapes, DVD’s, and games), a direc-tory of authorized dealerships and service centers, historical information, downloadable pictures of the original Vector W8, WX-3 and WX8, com-plete press materials, and investor information.

EndorsementsMarketing opportunities that are being considered include getting various well-known race car drivers involved in track testing, VMC research and development and public relations to help promote the Avtech. Further, the Vector Avtech WX8 can be used as a pace car at various races, as well as utilized in advertisements for commercial photo shoots, movies, TV shows, and other high visibility events. VMC has an extensive historical portfolio and successful track record in promoting the original Vector W8 and WX-3 Supercars.


PublicationsIn the past, the Vector concept, trade name, and Vector W8 twin turbo received rave reviews all over the world in the press, trade publications and auto shows. Great editorials and reviews will again become even more important as the volume and exposure of the new Vector Avtech exotic supercars increases. However, even more will be done with planned and selective advertising in trade magazines and other useful publications that cater to the wealthy. Television and media exposure at important races, the use of a Vector Avtech Supercar in movies, and the exposure of Vec-tor Avtechs with other suitable products in advertising campaigns are all effective low-cost avenues in which to provide Vector Avtech’s exposure to hundreds of millions of people worldwide.

Vector Avtech Supercars will receive complimentary press and will be covered in the following media: (with no cost to the company)

Automotive Enthusiast Magazines: Autoweek, Automobile, Car & Driv-er, Road & Track, Motor Trend, Sports Car International, duPont Registry, Hot Rod, Hemmings Motor News

Automotive Trade Magazines: Automotive News, Dealer Business, Mo-tor Age, Automotive Industries’, Ward’s Auto World, Design News, Auto-mobile Engineering

Business Magazines: Forbes, Fortune, Investor’s Business Daily, Wall Street Journal, Business Week, Leaders, Money, Worth

Lifestyle Magazines: Vogue, Town & Country, Playboy, Rob Report, Van-ity Fair, Departures, W, Men’s Journal, Men’s Health, GQ, Millionaire, Ty-coon, Forbes FYI, Mens Health

Radio Stations/Shows: KABC-AM (Los Angeles), KSEV-AM (Texas), WINS-AM (Virginia), America on the Road (national), KNBR-AM (San Fran-cisco), National Public Radio Car Talk, Business Radio Network, The Car Show (national), AP Broadcast News

Television Stations/Shows: MotorWeek, World of Speed & Beauty, Good Morning America, CNN, CNBC, Travel Channel, Today Show, Life-styles Rich & Famous, Granada Television

National Newspapers: Los Angeles Times, USA Today, New York Times, Newsday, Chicago Tribune, Chicago Sun Times, Houston Chronicle, Wash-ington Post, San Jose Mercury News, Detroit Free Press, Boston Globe, McClatchy Newspapers

Regional Newspapers: Denver Post, Orange County Register, San Diego Union, Philadelphia Inquirer, Newark Star Ledger, Atlanta Constitution, Mi-ami Herald, Kansas City Star, Cleveland Plain Dealer, Dallas Times Herald, Las Vegas Review-Journal, Toronto Star

Airline In-flight Magazines: United Hemisphere, Delta Sky, Lufthansa Air, Japan Air, American Way, Northwest Compass Readings


International Magazines: Auto Zeitung (Germany), Auto (Germany), Motoring (Singapore), Automobilisimo (Italy), Auto Fashion (Japan), L’Auto Journal (France), L’Automobile (France)

Movies and Television: Product Placement of Vector Avtechs in various media forums, corporate connections with prominent personalities and agencies in the entertainment industry.

VMC does not plan to advertise extensively as its supercars will garner massive press and publicity on their own merits the new Vector Avtech WX8 marks the return of Jerry Wiegert designed and Vector built super-cars to the automotive world. Public interest in VMC’s Vector Avtech’s extreme supercar design assures the Company of broad media coverage and exposure and therefore the ability to reach a massive target market at a low cost.

Public RelationsActivities provided by VMC’s “in house” Public Relations Agency are as follows: media identification, Vector Avtech press kit, annual sharehold-ers meeting, officer and personnel announcements, sponsorship alli-ances, editorials, goodwill tours, speaking engagements, Vector Avtech WX8 introduction plans, vehicle certification, performance benchmarks, special events, press releases, media test drives, dealer support, dealer announcements, and merchandise support. Outside PR promotion and advertising support will be utilized as necessary.

Special EventsPreviously, the Vector W8 Twin Turbo and Vector Avtech WX3’s have been featured on the covers of many auto and non-auto related publications. The car was used in a European Bridgestone commercial showing a 250 miles per hour tire and was featured in the movie “Rising Sun” There still are constant requests to use previous Vector vehicles on calendars and in video games. The Vector is featured in the Sony PlayStation games, Gran Turismo 1 & 2. Many more games, models and toys will be promoted at special events worldwide.

Sponsorship AllianceThe VMC sponsorship alliance program is in the process of being devel-oped and centers on the following components:

• A state-of-the-art custom sponsorship audio system will be designed and customized for each automobile.

• Identifying and scheduling key events for joint participation with a Vector Avtech on display at the Consumer Electronics Show and the recipient component sponsorship in the Vector Avtech display at the Detroit Auto Show, various con courses, trade shows, conventions and racing events.


• Identifi cation of each company in relevant advertising, brochures and promotional literature, when and where applicable for mutually benefi cial product exposure.

• Cross pollination of media attention. For example, VMC can benefi t from exposure in car audio publications and a company such as a leading edge audio products maker can benefi t from accessing auto-motive-based media.

A schedule of activities and potential programs are being developed for review by both organizations. The benefi t of such an affi liation goes be-yond obtaining superior products for the vehicles and event participation. Co-op advertising opportunities will extend the advertising reach to differ-ent audiences and markets.


Ancillary Revenue and MerchandiseLicensing Vector and Avtech’s

Aero-Tech ThemeThe potential for this market will require the targeting of relevant com-panies that can profit from VMC aerospace and aviation image and other high-tech attributes. VMC will mass-mail introductory letters, brochures, videos, posters, and other additional information to proven qualified Vec-tor Avtech WX8 prospects.

Producers of soft goods, apparel, driver’s accessories and the like pay royalties for trademarked and patented prestige themes. A substantial market now exists for supercar-image goods. Careful licensing procedures will be followed to promote activity that will produce worthwhile revenues while maintaining Avtech’s high profile image. It is estimated that hun-dreds of millions of dollars are generated by Ferrari’s branded and trade-marked consumer items.

Toys, computer games, and showcase models of popular prestige auto-mobiles are hot-selling merchandise. VMC expects to approach and be approached by several producers for these rights. Mattel, the producer of Barbie and Hot Wheels, was the first major toy company to market the Vector Avtech. Other toy and model companies will get Vector Avtech licenses and trade name authorization. Toy and model car companies should market the Vector Avtech model in time for Christmas within a year of the Supercar’s introduction. Vector W8 scale models are already currently available for purchase in auto model retail stores outlets inter-nationally.

Vector Avtech Supercar Rental DivisionVMC plans to establish its own Vector Avtech Supercar rental division to complement sales and promotion of the company’s automobiles. Rentals could be made through the company’s own 5 to 10 city fleet or by utilizing existing exotic rental agencies doing business in key metropolitan areas. Because the Vector Avtech should be more desirable than other exotics due to its state-of-the-art technologies and advanced styling. It should also be sought out for its unique high-tech design and low cost service and dependability by agencies with experience leasing exotic supercars.

Dealer Development ProgramTo obtain a higher profile in the marketplace, thereby creating new op-portunities for sales, an aggressive dealer development program will be implemented. The strategy being to add the Vector Avtech’s WX8 models to existing high line automobile dealership franchises. This will allow for VMC and Vector Avtech to be represented in key metropolitan areas with-out high sales volume requirements or unnecessary overhead costs to VMC to maintain a prominent visibility and market position. Existing auto dealers will be selected based on location, prestige facilities, inventory, fi-nancing, and staff. These factors account for every successful automotive dealership. Once implemented, VMC will address the following key geo-graphic areas for dealer development ranked in order of priority: USA,


South America, Canada, Europe, the Arabian Gulf, Asia, and the rest of the world.

USAAmerica is the largest market in the world for supercars and the country will be regionalized, granting exclusive dealer representations within the region. The regions will be Northwest, Southwest, Northern California, Southern California, Mid-South, Midwest, Northeast, Central East, and South Florida. The principle objective would be to analyze and appoint the appropriate dealers within the aforementioned regions as quickly as possible.

In an effort to attract high-quality and progressive dealer candidates, con-sideration will be given to providing flooring for VMC Vector Avtech Super-cars dealers. It is becoming increasingly popular for multi-line dealerships to handle exotic high-line automobiles as a result of bank flooring. While providing Vector Avtech with a wholesale order, flooring helps overcome a dealer’s apprehensiveness for purchasing Vector Avtech WX8 Supercars, as financing is immediately available to the dealers and VMC gets paid immediately upon shipment of the vehicle.

CanadaMinimum investment is required to market Vector Avtechs in Canada be-cause of close proximity and the fact that Canadians are widely exposed to US media and marketing activities. Canadian Dealers have shown considerable interest in the new Vector Avtech line should Vector Avtech proceed with certifying the Vector Avtech WX8 for export.

EuropeThe market potential for the American sports cars like the Dodge Viper and Chevrolet Corvette has been largely ignored to date in Europe. The Vector Avtech and Vector name still carries a certain “prestige” or ““pa-nache”” to it as an American-built, ultra high-performance, quality sports car. This should be immediately capitalized on, as the European market could quite possibly represent the largest offshore market share for Vec-tor Avtech wholesale distribution.

Arabian GulfThe Arabian Gulf (Saudi Arabia, Kuwait, Bahrain, the United Arab Emir-ates, Qatar & Oman) has a very high concentration high net worth indi-viduals and families with a demonstrated affinity for the newest and the best of everything, especially exotic automobiles, regardless of cost. The ruling and wealthy merchant families of the region are especially fond of American products and are extremely grateful for continued U.S. protec-tion and support. It is the third largest market, after North America and Europe, for luxury cars and supercars in the world.

AsiaThe Asian market is a sleeping giant and has been under-utilized, there-by providing significant future growth for VMC marketing opportunities, as the Asian cultures move progressively toward higher social economic status. All U.S. automobile companies are now targeting China for auto sales.


Satellite Service CentersTo broaden Vector Motors sales, service and market reach, Satellite Ser-vice Centers will be identified, developed, and appointed in key markets that authorized dealerships cannot easily reach. These centers can pro-vide added revenue for parts sales, in addition to sales opportunities, which under a formula basis, can deliver new vehicles in association with the nearest authorized dealership.

Selected service centers must meet one of the following criteria: outlying areas where an existing dealership cannot adequately provide efficient and cost-effective service support, large metropolitan areas where VMC Corporation does not have dealership support, or competitive marquee that have established sales and service performance records.

These existing automotive service centers simultaneously create certain benefits such as being a revenue source for sales of parts and signage, increasing Avtech’s visibility for potential customers, and providing a sales support mechanism.

Certified Service Training SeminarsIn collaboration with Avtech’s service technicians, certified service tech-nicians from each authorized dealer and service center will participate in comprehensive seminars at Vector Motors Corporation. Sessions are designed to facilitate a hands-on training or learning environment. Each seminar will emphasize the importance of overall customer satisfaction, as well as promote inter-dealer communication and trouble-shooting. These seminars can be conducted over the internet and by the use of DVDs.

For a dealership to qualify as a certified and authorized service facility, it must have existing certified technicians in the following eight areas: en-gine rebuild, gearbox rebuild, differential rebuild, electrical system trou-bleshooting, air conditioning, steering suspension and brakes, emission systems, and diagnostic testing. Training via the internet and by DVD will be used by VMC to reduce cost for dealer technology and training.

As more dealerships are added to the network, new programs will con-tinue to develop to ensure complete customer satisfaction. One such pro-gram is the Quality Assurance Program, whereby the U.S. is divided into six regions. Each region is overseen by one Vector Avtech appointed and trained dealership to ensure optimum Quality Assurance. These dealers will be selected for their interest, knowledge and commitment to our VMC Supercar marquees.


Service and WarrantyVMC will operate a service advisory system from its U.S. offi ce, which includes parts, distribution, and warranty. As the production numbers of VMC increase and more models are fi elded, the need for off-site servicing is expected to increase. This will not be a major problem, as overnight movement of parts via DHL, UPS, Federal Express, and other carriers is available to almost any location in the USA. Since the Avtech’s drivetrain will be based on an already proven production drivetrain, training for new service points should be minimal. Likewise, VMC intends to limit the ex-tent of any warranty claims by the use of proven production mechanical assemblies already covered by warranty. Additional communication with dealers and customers will be assisted via the Internet.

Service Capability ExpansionVMC plans to enhance its service department by creating a dedicated service parts inventory along with an expedited shipping process, estab-lishing worldwide service points (both dealer and non-dealer), providing training videos, DVD, in-factory service courses, and utilizing VMC’s web-site.

Warranty PoliciesVMC production cars will be covered under a 12 to 24 month limited war-ranty with no limit on mileage. A fl at-rate labor manual will be included in the service information manual, in addition to an illustrated parts manual and an easily updated price list for parts. An extended warranty program will be available to customers at minimal cost from existing third party providers. A warranty review team will be formed in order to evaluate dealers’ work statements and/or customers claims. The warranty policy, given with each Vector Avtech automobile, will state categorically that VMC’s warranty judgments are fi nal.


Manufacturing PlanManufacturing Strategy

VMC’s manufacturing approach is similar to that of small corporate jet and auto companies with low volume production. However, VMC possesses ex-tensive in-house capability in conjunction with its strategy to use special-ized subcontractors for selected outsourced manufacturing of component assemblies. This type of strategy allows VMC to develop and produce Vec-tor Avtech automobiles quickly, without major investments in infrastruc-ture, tooling, and manpower. The subcontracting or outsourcing method of manufacturing substantially reduces overhead cost. Most Vector Avtech components and materials are readily available from a vast network of quality subcontractors and suppliers throughout Southern California and the United States, including the low labor cost countries of Canada, Mex-ico, and China/Asia.

VMC is capable of operating profitably on a volume of 50 to 250 units per year. In order to operate efficiently, VMC approaches manufactur-ing from a small aircraft aerospace manufacturing paradigm, rather than an exclusive Detroit automotive paradigm. Mass-production automobile manufacturers use traditional metal dyes and tooling systems to produce hundreds of thousands of inexpensive sheet metal components. The start-up tooling for high-volume Detroit style automobile production can cost tens of millions of dollars. VMC will use low cost, fiberglass composite materials that require minimal tooling, are stronger, do not have corro-sion problems, and can be made at a fraction of the cost of other automo-bile manufacturers. In addition, fiberglass composite parts are stronger. Large Detroit and foreign auto manufacturers cannot profitably use these low volume materials in their high-production automobiles and instead use sheet metal stampings to meet stringent cost requirements to remain competitive.

VMC has sourced major sub-systems such as the engine, transmission, and other components from high volume production manufacturers to realize cost savings on these items. Avtech’s engine and transmission and other major components will come to the production line pre-assembled.

VMC management plans to implement a computerized manufacturing sys-tem that will integrate design, process planning, production, inventory control, and tracking of each automobile through the production process. The Company has also implemented project management software, which is designed to coordinate component lead times with production sched-ules and provide for the acceptance of components on a “just-in-time” delivery schedule. The Company utilizes advanced CAD engineering soft-ware on low cost Windows based workstations for engineering and design purposes.

Production control systems used at VMC will be based on Cost and Sched-ule Control System (CSCS) methodologies developed in the aerospace industry. This approach defines and monitors three critical aspects of proj-ect control: cost, schedule and performance.


Manufacturing Pro-cess

ChassisThe manufacture of the Vector Avtech begins with a “proven-crash tested” aerospace-engineered and epoxy-bonded, riveted, semi-mono-coque chassis. The chassis is con-structed of an aluminum honey-comb passenger fl oor, aircraft-alloy sheet aluminum and chrome-moly steel tubing. The chassis structure is engineered and built utilizing pro-duction jigs and inert-gas welding

methods. The chassis fabrication facility will be capable of a 10 to 20 unit-per-month manufacturing rate, depending on manpower loading and sales. The Company is investigating other combinations of manufacturing processes and materials for the chassis for future Vector Avtech models such as a one piece carbon fi ber molded chassis which is not practical or cost effective now.

BodyThe body panels are manufactured using high-strength glass fi bers, ara-mid, and carbon in a resin matrix. The fi bers and resins are applied to the molds in layers, with stress points receiving extra carbon fi ber or Kevlar in order to increase structural strength. All parts are fully primer-gel-coated to provide an excellent surface for painting. Body building effi ciency and speed are improved signifi cantly with VMC‘s newly engineered one-piece body molding tooling system. Each body is assembled on a master setup chassis, where doors and hatches are gapped, and the entire body is block sanded as a whole. The parts are then painted individually with a two-

stage urethane painting process. A “robot” can be utilized to enhance and accelerate the body manufac-turing and painting process.

AssemblyVMC’s small two-man assembly teams install the front and rear sus-pension, rack-and-pinion steering, and braking systems. Both front and rear brake systems are provided to the assembly line as complete sub-assemblies.

Engines are built and delivered as needed “just-in-time” as complete assemblies, according to VMC spec-


ifications. Intake, exhaust, and performance sub-systems are installed in the Company’s engine shop. Transmissions prepared by specialized vendors are completed and joined to the engine. The whole drivetrain package is then assembled and delivered to the short efficient produc-tion line. The entire drive line package is bolted in as a single unit. With the drivetrain and suspension installations completed, all plumbing items (cooling, lubrication, and fuel) are installed using pre-packaged plumbing sub-assemblies made up of custom-formed aluminum and stainless steel tubing. Once plumbed, the Vector Avtech is wired using pre-assembled wiring harnesses. The completed body is then mounted, with all latches, handles, and lights installed in sub-assembly operation zones specific to these activities in the main assembly facility. Pre-fitted, leather-covered interior panels, carpets and seats reworked in the trim shop are then in-stalled. The final assembly station is used to terminate all wiring for items mounted to body panels and to install the windshield, doors, wheels, trim work and any body-mounted components. Assembly of Vector Avtech Supercars will be fast and efficient.

Quality ControlVMC’s use of end-of-line quality control procedures plus the use of vendor supplied quality control of subcontracted vendor components and vendor-sourced materials provide a high level of product integrity. Quality control and quality assurance are an integral part of CIM (computer integrated manufacturing).

Pre-delivery and final out procedure The completed fluid and electronic systems are checked during final as-sembly and mechanical reference gauges are installed to read critical drivetrain data during extensive road testing. Each sub-unit goes through a final quality check and relevant data are recorded. Computer-controlled final diagnostic checks take place just prior to preparations for registra-tion and shipment. Detailing and packaging of the documentation are the final touches that conclude the production process. Mr. Wiegert, the Vec-tor Avtech WX8 designer and VMC founder, will provide final and personal approval and road test of each VIP customer’s car.

Facilities Vector Motors Corporation is located at the “World Port of Los Angeles”. Southern California is the trend setting center of the nation and purchases more luxury and specialty sports cars than any other market in the world. It is logical that this area of the country, which continues to serve as a national proving ground for development of all types of vehicle design and marketing, be chosen as the manufacturing base for a new, high-technology automobile. Most major international automobile companies have R&D facilities in Southern California. An abundant pool of aerospace, automotive, and other appropriately trained and skilled technical labor ex-ists in the greater Los Angeles area, as do many of VMCs major suppliers and key subcontractors.

VMC is currently located in approximately 50,000 sq. ft. of facilities ideal for low volume and pilot production, design, prototyping, engineering, research and development activities. A second facility of approximately


25,000 to 100,000 sq. ft. may be needed in the future as manufacturing production levels increase on higher volume lower cost models. The fol-lowing table provides specifi c information with respect to the facilities to be leased by the Company, all of which are located in Wilmington, Califor-nia in close proximity to each other for effi cient fl ow of work-in-process activities.

VMC’s 1st Phase Vector Avtech Manufacturing Requirements

VMC’s facilities are suitable for manufacture and assembly of four to eight cars per month. Additional space may be required as production is planned to ultimately exceed that level. Accordingly, the Company may evaluate the lease of a much larger centralized manufacturing, testing, and showroom facility in the future as requirements for volume produc-tion warrant. VMC’s facilities are substantial and are currently in place for the initiation of prototyping the initial low volume Vector Avtech produc-tion requirements.

Facility Defi nition Location Square Footage

Executive, Engineering, Assembly Port of Los Angeles 17,000

Composite Shop, Body Lamination, Body Fabrication, Tooling, and Painting

Port of Los Angeles 10,000

Chassis and Metal Fabrication Port of Los Angeles 5,000

Design, Styling & Prototyping Port of Los Angeles 5,000

Research & Development Port of Los Angeles 4,000

Storage Space Port of Los Angeles 10,000

Total sq. footage 51,000


ManagementVMC’s management group is desirous to achieve status and reestablish Vector as a world leader in supercar manufacturing and marketing. A business such as VMC is a complex structure made from an array of in-dependent factors, each one being a region of action devoted to contrib-uting to the final act: delivering and receiving payment for a superlative automobile.

The culture at VMC is based upon a commitment to excellence in automo-tive design, manufacturing, and marketing. The role of management is to respond to the ultimate motive, which is to deliver exceptional products on time and at a profit while creating a positive worldwide reputation for VMC.

Methodology

The Company’s operations will be departmentalized. However, because of the entrepreneurial nature of its startup, VMC will need to quickly make a transition to sales stability and positive cash flow. To this end, all depart-ments will undergo a coordinated transition from side-to-side network-ing to a top-to-bottom regimen of assignments and deadlines. Accord-ingly, the Company is implementing an operating procedure which calls upon the skill and initiative of each manager to align his department with the profitability goals of the Company. Therefore, management’s internal communications and information systems will use approprate manage-ment software.

Information Technology Management

The Company will install a proven MIS (Management Information System) along with a LAN (Local Area Network) to serve management’s need to access information rapidly. The system will serve administration, engi-neering, service, procurement, production, marketing and sales. Some features are:

• Inventory control, with bar coding.• Bill of Material, with pick listing, re-order, and shortage reports.• Production scheduling.• Shop floor and station control.• Material requirement planning.• Job costing and reporting.• Department budgeting.

All VMC vehicle part numbers will be tracked as new models come on line. Even in low volume manufacturing, materials and workers must be on time and on schedule. The key to utilizing advanced information systems efficiently is skilled, experienced personnel with relevant training.


Management PersonalThe Company’s ability to stay on course is determined by management’s ability to define and take the necessary steps to accurately measure prog-ress. VMC is in process of selecting individuals who have extensive vehicle manufacturing knowledge and automotive experience, as well as confirm-able accomplishments.

Gerald A. Wiegert – President & Chairman/Director Mr. Wiegert will serve as VMC’s Chairman of the Board, President and Chief of Design & Technical Operations. Mr. Wiegert founded VMC, the descendant of his original company, Vector Aeromotive Corporation, in 1998. Since then he has been primarily responsible for the design and development of the new Vector Avtech automobile. Mr. Wiegert developed the conceptual specifi-cations and was responsible for the engineering and styling of the original Vector W2, Vector W8 and all Vector Avtech prototypes. He will personally oversee the design engineering criteria and quality standards for subse-quent VMC automobiles. Mr. Wiegert leads the VMC management team. As the inventor and designer of all of the Vector supercars including the all new Vector WX-8, Mr. Wiegert has over 35 years experience and is a world-renown expert and pioneer in the field of advanced vehicle product design, including the design of the Jet Ski, 4-Wheel ATV, and the Air-stream Motor home, all of which achieved huge commercial success. Mr. Wiegert founded and was CEO of Vector Aeromotive Corporation, the first American manufacturer of exotic supercars, which he took public on the NASDAQ and which achieved a market valuation of over $100 million. Mr. Wiegert designed and engineered the Vector W-8 Twin Turbo. With a top speed of over 220 mph, Road & Track Magazine declared the Vector the fastest production car in the world, outperforming Ferrari, Lamborghini, and all other exotic supercars during the years the Vector W-8’s were produced.

As the Founder, President, and Chairman of several companies, both pri-vate and public, Mr. Wiegert’s primary leadership roles have been related to inventing/developing vehicles and products, developing business plans, managing and initiating capital raise functions. This includes raising over $50 million through venture capital, IPO, secondary offerings, and private placements. Mr. Wiegert founded and formed two NASDAQ Small-Cap listed Corporations, which exceeded over $100 million in market capital-ization value. He has managed the development of multiple businesses, set up the facilities, negotiated for and purchased machinery and equip-ment for production, recruited and managed all technical, R&D, tooling, financial, sales, marketing, manufacturing, and quality control activities. Mr. Wiegert also served as the lead and originating investor in all his companies and is experienced in all aspects of corporate management, manufacturing, prototyping, technology, assessment and implementa-tion, product advertising strategy, legal and corporate alliances, licensing, dealer development, media interface, and other corporate disciplines.

Mr. Wiegert has been responsible for corporate strategy positioning for multiple companies within their respective industries, as well as media interface, investor relations, and interaction with the financial community


at large. Mr. Wiegert’s exceptional team building experience has related to technically advanced programs, R&D, and sophisticated manufacturing systems.

Prior to his involvement with Vector Motors and Aquajet Corporation, Mr. Wiegert served as an independent consultant specializing in advanced vehicle and product design for various companies including Industrial De-sign Affiliates, Innova Inc., once the largest independent toy development company in the US, Toyota Motor Company, Synthetex, and Trans State Financial Corporation. He was responsible for the initial and final design of the Wetbike and worked on the design, development, and prototype assembly of the original JetSki, which was subsequently licensed, to Ka-wasaki by its inventor. Mr. Wiegert worked as a consultant to Industrial Design Affiliates where he designed the original Airstream Motor home, worked on motorcycle engine design, and other consumer products. He also was involved in the product designs for a variety of vehicles including motorcycles, electric automobiles, trucks, and exotic sports cars. Some of these designs were performed on a consulting basis and others were the entrepreneurial foundation of Mr. Wiegert’s personal start-up companies.

Mr. Wiegert has organized, managed, and attended scores of scientific, aerospace, consumer electronics, motorsports, auto industry trade and corporate finance road shows all over the United States, Europe, the Middle East, and Asia. With expert ability, he has given corporate presentations to the financial community in major cities across the U.S. and around the world. He has been a principal speaker at the Jet Propulsion Laboratories (JPL), colleges and universities, auto clubs such as the Porsche Owners Club, Ferrari Owners Club, Mercedes Benz Gull Wing Club, Pantera Owners Club, and numerous other clubs and associations.

From 1978 to 1987 Mr. Wiegert initiated the research, design, and de-velopment of the world’s most technologically advanced, ultra-high per-formance exotic automobile, the Vector W8-Twin Turbo supercar. In No-vember 1987, Mr. Wiegert founded the Vector Aeromotive Corporation, a NASDAQ company with over a 100 employees and dozens of consultants, and served as the President, Chairman and CEO, responsible for the de-sign, engineering, managing the manufacturing and marketing of the fast-est production car in the world. Vector was the only American manufac-turer of exotic supercars. He also supervised financial functions and due diligence requirements for underwriters, investment bankers, the SEC, and NASDAQ. Mr. Wiegert negotiated all underwriting, secondary offer-ings, and private placements in addition to assisting and reviewing all SEC registrations and 10Ks. He negotiated insurance contracts and identified and engaged all legal and accounting firms for Vector Aeromotive. Mr. Wiegert was responsible for raising over $30 million dollars of capital for Vector Aeromotive. Mr. Wiegert formed Aquajet Corporation after a year of initial research and development that lead to the invention and design of the Jetbike. Aquajet won the NMMA (National Marine Manufacturers Association) Innovation Award for the Boats category in Orlando, Florida. Mr. Wiegert also recently received the First Place Award for Design Excel-lence at the Invention Convention in Pasadena, California. Gerald Wiegert has been a member of the Society of Automotive Engineers, the Society


for the Advancement of Materials and Process Engineering (SAMPE), the Experimental Aircraft Association (EAA), the Society of Manufacturing En-gineers, the American Management Association (AMA).

Gerald Wiegert is a renowned international designer and entrepreneur with hundreds of stories in various consumer, automotive, and techni-cal feature color cover publications such as Jet Action, Watercraft Illus-trated, Splash, WaveRider, Road & Track, Automobile Magazine, South-bay Lifestyle, DuPont Magazine, NASA Tech Briefs, Car & Driver, Dream Car Collection Books, Extraordinary Automobiles and many others. Mr. Wiegert has also received feature television and radio exposure, some of which include Entertainment Tonight, Beyond 2000, Next Step, C-Net, Good Morning America, and Financial News Network (FNN) to name a few. Gerald Wiegert has completed seven years of college and graduated with distinction from Art Center College of Design with a Bachelor of Sci-ence in Transportation and Product Design in 1970. Mr. Wiegert received fi ve years of full-tuition scholarship from General Motors Corporation from 1965 through 1970 while attending the Center for Creative Studies in Detroit and the Art Center College of Design in Los Angeles. He was one of only 10 university students selected by General Motors to participate in an Advanced Vehicle Design internship at the GM Technical Center in 1968 from competing students at over 70 colleges and universities. Ger-ald Wiegert additionally holds an honorable certifi cate in Advanced Air-craft design from Northrop University and has been involved in extensive wing-in-ground (WIG) effect fl ying boat/marine craft research, design, and development from 1968 to the present. He is considered an expert in this little-known advanced transportation fi eld, by that represents a new form of transportation.

VMC’s Management, Technical, and Manufacturing Team is in formation and will be identifi ed to investors very soon or once a funding commit-ment is in place.


Financial Requirements 2006 through 2010

Vector Motors Corporation requires an investment of fi fteen (15) million dollars in order to bring about the planned corporate expansion required to meet management’s Vector Avtech Supercars unit volume objectives. As production increases depending on the total number of Vector Avtech Supercars sold, additional funding could be required. An IPO, sale, or merger of the Company to a major multi-national manufacturer will be considered as an exit strategy for VMC investors. Initial financing of five million is required to complete the VMC first phase Vector Avtech proto-type and pre-production ramp-up. A pilot production run of twenty-fi ve units will follow pre-production.

Financial models will be made available for discussion with serious, quali-fi ed potential investors.

Financial Plan


In summary, the VMC business plan presents a conservative approach to taking the Com-pany from a development stage to a profitable low volume auto manufacturing operation similar to Ferrari and Lamborghini. Additional capital above the $15 million mark would al-low earlier introduction of Vector Avtechs and the introduction of lower cost Vector Avtech models, as well as increased marketing and sales efforts and expansion of merchandising activities resulting in improved profitability.

VMC’s business plan is consistent with companies that have experienced learning curve lessons and are emerging from the development, R&D pilot production stage to efficient production and economic success. Investors will be afforded the opportunity to be involved in a great new American car company. The VMC supercar venture is a once-in-a-life-time business opportunity for investors who love performance automobiles and who identify with the VMC business plan and wish to be a part of “American automotive history”.

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Summary


Appendix


VECTOR WX-8 MANUFACTURINGFor VECTOR MOTORS, (VMC) to be competitive and have an advantage over the competition, VMC will side track

the traditional ways that companies like Ferrari, Lamborghini, Porsche and others manufacture their limited production exotic supercars. All of these companies have highly structured and demanding labor unions that drive up the cost of manufacturing their automobiles to the limits of consumer tolerance. The pricing of these cars have reached levels out-of-bounds to most buyers who identify with the performance and design uniqueness of these low volume exotic style of automobiles but are wise enough not to be taken advantage of just to be distinctive or stand out in automotive circles. VMC will dedicate its car building efforts at subcontracting, outsourcing, and lean manufacturing to be efficient and profitable. These manufacturing techniques are utilized for reasonably priced, mass produced automobiles to combat high cost, but are not fully capitalized on by low volume automobile companies. Most of these companies must contend with the high wages, insurance, taxes, electricity and fuel cost. To compete effectively VMC will study and implement certain lessons learned from outsourced manufacturing methodologies and implement these procedures. VMC will explore the advantages of manufacturing some of its components in China, Mexico and other areas where labor cost are low by comparison but where it does not detract from the image of the companies automobiles. Design Engineering and assembly of components will be accomplished in the U.S. to preserve the high standards and integrity of the product, and provide a built in the “U.S.A.” foundation. Joint Venture opportunities will be explored as VMC designs, develops and finalizes the basic design architecture and final configuration and execution of the Vector WX8 supercar.

Production system efficiencies will include waste reduction techniques; just-in-time production, inventory tracking by bar coding, and the use of standardized parts and components and technologies available over-the-counter. In order for VMC to stay in business once the business is launched management will be focused on a methodology of continuing the process of learning from others in improving and updating our manufacturing and assembly procedures. The new Vector WX-8 is not revolutionary. It is evolutionary. As a concept-car in the 80’s and early 90’s, Vector was the leader in advanced supercar technology and substance. Not only was the Vector W8 twin-turbo the world’s first supercar, but also the fastest production car in the world, it was also, the most advanced technologically. The new Vector WX-8 when committed to production will transition from a full sized mock-up prototype, to production in just 24 months or less. The difference between the original Vector W8 twinturbo and the new Vector WX-8 is primarily related to an all-new body design, a new high output, but more cost-effective proven performance engine system, and the return to subcontracting and out-sourcing, which is a key component to the new VMC business plan or model which is based on profitability for shareholders.

The new Vector will share the original Vectors flat panel materials construction philosophy, which included a strong but light weight steel and aluminum structure, aluminum honeycomb panel floor structure and composite body parts. This aerospace-aircraft approach was proven-up in the original Vectors, DOT crash testing and in over a decade of safe user ownership, durability and practical road use. Ultra-high-performance cutting edge design and lightweight are the primary objectives driving the Vectors new design. However, cost and minimizing the up-front capital investment are the key manufacturing production and business objectives. The exterior design or styling is intended to preserve the Vectors timeless high-tech look with out any specific design or shape elements being borrowed from the original W-8 utilized to create the new Vector WX-8 design. The new Vector will continue the cost effective logic of utilizing an easy to fabricate spacecraft like structure or space frame to mount all key components. This simplistic but sophisticated structure utilizes welding, bonding and mechanical aerospace fasteners to construct and assemble the structure. No compound forming or matched metal dies are used to assemble the structure. Only inexpensive dimensionally stable tooling tables with jigs and fixtures are need to have relatively unskilled labors do the work with minimal training and supervision time needed to reach customers for our extraordinary ultra-high performance aerospace crafted automobiles. The stage is set to launch the all new Vector WX-8 into production, from a foundation of experience that will minimize the time it takes to reach production of our Vector super cars. Suspension parts will be made from fabricated or sourced components where possible, from off-the shelf sources. The complex exterior and interior surfaces will be formed out of lightweight composites or vacuum formed plastic materials. The molds to duplicate these body and interior parts are made from relatively inexpensive mold materials that can be easily cloned and duplicated for increased production. Although the labor content is higher for this type of construction, VMC will be using low labor rate personal to actually hand make these parts thought the utilization of lightweight pre-preg composites and use of the hand laid-up composite materials in a mold. The finished parts can actually be up to 40% lighter than aluminum.

To prevent any pre-conceived thoughts about how various parts of the Vector are made, the company will utilize a competitive bid strategy and take advantage of the experienced vendors and suppliers that specialize in manufacturing small production runs of parts needed for the Vector WX-8. By relying on proven vendors and subcontractors with reputations for meeting cost objectives, delivery schedules, and quality control, Vector management will meet or surpass its projected standards of excellence and eclipse the completion in cost-to-manufacture. Our new Vector WX-8 will create a new category of supercar that will be admired worldwide by the auto industry and buyers and enthusiasts.


VECTOR/AVTECH WX-8 SUPERCAR AN AUTOMOTIVE SHOWCASE FOR ADVANCED TECHNOLOGY

By: Gerald A. Wiegert Vehicle Design Force/ Vector Motors Corporation

1. ABSTRACTNew levels of system performance require technological innovation of breakthrough quality. For at least a decade, developments in the auto industry have not warranted the designation “high technology” due to the lack of fundamental advances in materials and processes. The automobile industry, traditionally the most important sector of the American economy, has failed to pioneer significant contributions to design, construction, mechanics, aerodynamics, and materials, and consequently all aspects of performance have remained static. Thus, while European auto makers have relied upon old technology to dominate the GT or Grand Touring class, the U.S., in which progress in research engineering is initially evaluated on a systems level, has forfeited the opportunity to create a truly state-of-the-art competing vehicle by default.

The Vector/Avtech WX-8 Supercar is the culmination of a technology integration program combining the most distinguished achievements of the American Aerospace Industry, which has a proven track record of innovating to remain on top technologically. Intended as a dynamic American statement of all that is possible in precise, creative and imaginative materials and processes technology, the second generation Vector is a definitive example of the ability to ambitiously target foreign Supercar manufacturers successfully using the same space-age high technology that gave substance to the Apollo Moon Landing, the F-117 & Joint Strike Raptor F-22 jet fighter, and America’s space shuttle program. Through the use or Racecar performance, Production car Durability, reliability, ease of maintenance, and advanced materials and techniques, Vehicle Design Force, the private design and engineering company that developed and produced the Vector W8 Twin Turbo and Avtech Prototype Show Cars, expects significant “”spin-off” from its Aerospace and Aircraft technology integration program.

2. INTRODUCTION2.1 PERFORMANCE AND CAPABILITIESThe All new Vector WX-8 Supercar is the result of an intense research and development program headed by Gerald Wiegert, founder of Vehicle Design Force and VMC. The Vector Avtech is a limited production automobile that will exceed the capabilities of all current sports/grand touring (GT) cars built to date. The new WX-8 will accelerate from zero to sixty in less than 2.5 seconds, reach a terminal velocity of 270+ m.p.h., and provides approximately 18 m.p.g. cruising at legal speeds. The Vector represents conceptual thinking in multi-role systems design unlike any of the foreign competitors’ products which were designed more than a decade ago. Previous exotic sports or Supercars and GT automobiles presented compromises to the owner in the quest for racecar like performance, repairability, comfort and safety. These are traits lacking in many traditional exotic sports cars. Through the use of proven state-of-the-art advanced technology integration into each relevant system and sub-system, the Vector’s total system incorporates the traits not found in its competitors’ products. It therefore warrants its unique designation as a “high technology multi-role Supercar (HTMS).”

2.2 SYSTEMS DESCRIPTIONS The Vector’s shape embodies the total form philosophy, where the upper “greenhouse” area is integrated into the lower body form. The tapered nose helps penetrate the air, while the “wedge”, or tapered forward surfaces and front spoiler, together with the designed double-element rear wing-spoiler help stabilize the WX-8 and create down-force at high speed. The underside of the car is completely smooth, and flush body details further reduce interior wind noise.


To gain access to the Vector’s passenger compartment, the driver releases the door latch and a gas strut raises the door. This reveals a large, unobstructed opening for ease of entry, and eliminates the possibility of the door striking a pole, parked car, or being struck by oncoming traffic. The interior space is very large (65 inches wide), and the seats and steering wheel are adjustable to fit most any size occupant. Unlike other Supercar’s, the interior layout of the WX-8 was not compromised for the mechanical systems. This is made possible by the Vector’s intentionally larger cockpit design and a more compact transverse mid-engine drive train package that can also be positioned longitudally.

Instrumentation in the Vector is similar to that found in military aircraft. It is designed to allow the driver to keep his eyes on where he is going as much as possible, and receive information as quickly as possible when he does have to glance at the advanced flat-panel instruments. Speed and other basics are HUD (“Heads Up Display”) reflected on the lower portion of the windscreen by incandescent digital displays and digital & analogue displays. All basic instrumentation and drive train functions are displayed on the instrument panel by aircraft style bar graphs.

All wiring in the Vector is mil-spec in order to increase reliability and decrease the probability of electrical fires. Aircraft circuit breakers are used in place of fuses, and are mounted on the instrument panel so that an electrical problem can be detected visually and tactually while driving. The chassis of the Vector is a semi-monocoque composite structure. The design and materials used allow the chassis to be light yet extremely strong and rigid. High stress aluminum alloy skins joined by epoxy and stainless steel rivets compose the monocoque, which is integrated into a structural steel alloy roll cage reinforced with an aluminum honeycomb panel. The suspension that ties to this is fabricated from a light weight steel alloy: unequal length A-arms in the front and trailing arms with a De-Dion tube in the rear. The shock absorbing units have adjustable damping, rebound, and spring preload, allowing the road feel to be altered to suit driver preference.

The basic engine selected for the Vector/Avtech is an aluminum version of the GM 427 cubic inch V-8 block design, manufactured for Vector by GM. The General Motors small block is noted for its extreme durability and racing success. Its successful 50 year history of racing and passenger car use plus General Motors’ worldwide dealer network guarantee spare parts availability. The engine is twin-turbo or super-charged, which enables it to produce 1000+ horsepower for street use without the turbine lag. The advantage of the Vector’s type of power generation is that a turbo-charged engine has a low compression ratio and relatively mild camshaft duration, resulting in very drivable low RPM characteristics unlike Porsche, Ferrari or Lamborghini. Fuel is supplied by a continuous, direct port fuel injection system (DPI), with an exhaust oxygen sensor which maintains a stochiometric fuel-air ratio, thus reducing emissions. A large air-to-air or air to water intercooler lowers the temperature of the incoming charge, increasing the engine’s efficiency and allowing it to run on pump gasoline without detonation.

A multi-stage dry sump lubrication system provides constant oil pressure during excessive lateral G forces generated by the Vector’s hard acceleration, braking and cornering. Torque is transmitted through a hydraulic variable ratio torque converter and a six-speed transmission which can be ratchet shifted manually or automatically. The differential is a proprietary design utilizing an aluminum housing, helically cut gears, and a dual-drive differential. The brake system designed for the Vector is composed of four 17.0 inch ventilated rotors with four-piston aluminum calipers, available with or without power assist.


Occupant safety was a prime objective in the design of all of the Vector’s systems. The monocoque structure allows for a progressive crush in front and rear impacts, and an inboard seating position safeguards occupants in a side collision. A five point restraint system as used in F-22 fighter aircraft holds the passengers within the safety of the roll cage. An indestructible fuel cell and stainless steel braided fluid lines greatly reduce any probability of fire in a severe collision. A Vector prototype has been involuntarily crash-tested twice at 60-70 m.p.h. with two occupants on board, with no injuries to driver or passenger or structural damage to the vehicle. Vector production Supercars have been crash tested and achieved the highest levels of Government Certification.

3. MATERIALS PROCESSESInnovation in new materials and processes has always been associated with changing technology in the products and systems that form the environment in which we live. Technological innovation is brought about by individuals attempting to achieve one-ups-man-ship with their particular product. Thus, pioneering in new medias takes place only where competition exists. New materials and design techniques designated as “high tech” have seen use in competitive products such as sporting equipment and race cars. But of course, the Zenith of “high technology” occurs where the competition involves not just winning and losing; but life and death itself - US Military Equipment.

Here, where our very existence is at stake, comes the ultimate in “high tech.” America has always been a leader in the “techno” race; our military fighter aircraft stand at the pinnacle of it, and they demand respect worldwide.

However, our performance in recent economic wars has revealed fundamental vulnerabilities in many industries, particularly auto-making. It is from this vantage point that the Vector/Avtech WX-8 was conceived as an “automotive weapon,” designed to “call-the-shots” from the leading edge of the automotive spectrum and foster significant spin-off to the rest of the American auto industry.

For the last several decades few auto manufacturers have applied new technology to automotive design and engineering, the most significant technological developments have been in the aerospace industry. Materials and processes far superior to any used in the automotive market today have resulted in aeronautical performance and multi-role capabilities that are already well time-proven. The attack plan of Vehicle Design Force/Vector Cars was to apply the same aerospace materials and construction techniques to create a state-of-the-art automobile whose advanced features could be successfully integrated without the hazard of passing unproven technology on to the consumer. Thereby, the Vector/Avtech WX-8 could cross the threshold to eclipse European GT type automobiles and redefine an automotive standard representative of American technological capability in materials and processes.

For example, it is possible to achieve light weight and yet to have strength far exceeding the norm. Safety and durability can also be enhanced in the process of achieving maximum system performance. There are many other areas in which traditionally undesirable traits of foreign GT automobiles have been eliminated in the Vector by using state-of-the-art materials and processes.


4. STRUCTURES & SYSTEMS4.1 THE MONOCOQUE STRUCTUREThe basic structure of the Vector is its chassis. It is a semi-monocoque design using an aluminum honeycomb panel and aluminum sheet which is epoxy bonded and stainless steel riveted together. The advantages of this type of construction are threefold.

A) Strength. Traditional automotive welded steel structures tend to have stress concentrations at the welds, either at the spot welds in a unibody design, or where the tubes join in a tubular design. Riveting and bonding distributes loads more evenly. The epoxy in the joints carries most of the load, keeping the rivets from working loose after many miles. The Vector’s chassis is comprised of a central cab section which is very stiff, and the front and rear extremities, which are deformable under impact. The cab section houses the occupants and the fuel cell. It is comprised of a tubular steel roll cage structure fabricated from a structural steel alloy, and boxed sections of aluminum sheet joined in the bonded/riveted fashion. An aluminum honeycomb panel, made to Vector specifications, spans the entire cab section in the floor area. This provides a rigid structure with uniform load distribution, which acts as an impenetrable shell for the passengers and fuel supply. The front and rear “booms” are of a pure monocoque design. They too are made of aluminum skins bonded and riveted together. Because of their tapered shape and lack of stress concentrations, they allow for an extremely uniform and progressive crush up to their bases on the cab section. The benefit of these characteristics is a very high level of safety for the vehicle’s occupants.

B) Light weight. The entire Vector chassis structure weighs only three hundred and fifty pounds. It is inconceivable to produce a chassis from a mild steel as virtually every other auto maker does, with a strength to weight ratio even remotely similar to this type of structure. In terms of the advantage to the vehicle as a whole, light weight provides faster acceleration, higher cornering ability and improved fuel economy.

C) Stiffness. In order for automotive suspensions to work as they’re intended, they must be fastened to a stable base. The cornering potential of any vehicle is directly proportional to chassis stiffness. It has been estimated that the Vector’s chassis is approximately 300 percent stiffer than any other production GT car chassis. This provides for not only an extremely high cornering capability, but very stable and predictable traits regardless of the road surface condition. High density resilient bushings and self-lubricating bushings are used in the suspension members, resulting in a stiff-feel without the harshness associated with high performance cars. These suspension bushings also have a life many times longer than traditional high performance parts.

4.2 THE COMPOSITE “SHELL”The body of the Vector represents another area of departure from the automotive norm. It is a composite structure composed of Aramid graphite and glass fibers, bonded by epoxy resin in hand lay-up. Although the body is not a structural member per se, it does carry all of the aerodynamic loads and transfers them to the chassis. The shape lends stability to the car at speed, as well as generating down force. Since the car is capable of speeds well in excess of 200 miles per hour, these loads can become tremendous.

The use of composites in the body structure provides a number of advantages. Most obvious is the strength to weight ratio advantage, which enables the body structure to carry the


intended loads without becoming excessively heavy. This contributes greatly to the car’s overall low weight of 2800 pounds. The body is also completely resistant to dents, and can absorb a significant amount of impact in case of an accident. The repair procedures required are common to other polyester/glass fiber cars, so that an owner can have his car repaired locally. In addition resin/fiber composites absorb rather than transmit noise and vibration, which results in a lower interior noise level. They can also provide radar transparency. The composites used in molding offer outstanding fatigue properties and are impervious to corrosion. Aerodynamic loading and stress due to flexure do not evenly distribute themselves over the Vector’s body structure. Some areas are more highly stressed than others. The beauty of using advanced fibers is that they can be selectively placed in these high stress areas in any quantity, in order to spread out concentrations or reduce flexure. Thus, the use of carbon and Aramid or Kevlar fibers allowed a certain amount of design freedom. Thinner cross-sectional areas can be utilized in a design that would not be possible with the traditional glass/polyester laminates.

The Vector’s surface structure composites integration is unique. It takes advantage of the useful properties of advanced composites where needed, yet is cost effective by limiting use of the more expensive fibers to critical areas. This type of construction has the capability of being used in larger scale production in many consumer oriented products.

4.3 ENGINE AND DRIVETRAINThe Vector’s engine and drive train system is comprised completely of aluminum alloys. The engine is a 7 liter twin turbocharged or supercharged, fuel injected V8. It is mated to a manual/automatic hydraulic transmission and a proprietary differential. The engine utilizes an aluminum block with extensive internal structural webs as well as aluminum heads and pistons. The combustion chamber surfaces are ceramic plasma coated for superior efficiency and durability. The valves and connecting rods are stainless steel alloy. The crankshaft is machined from alloy steel billet. Various other shafts throughout the drive train are machined from high-strength specialty steel alloys, necessary for reliable delivery of the engine’s 600 to 1,000 plus horsepower!

The superior heat transfer characteristics of aluminum are exploited in the cores of the radiator, oil coolers, and intercooler. Drive train lubricants are synthetic-based, offering improved efficiency and longevity. The entire drivetrain is suspended by resilient synthetic bushings, which isolate vibration from the chassis.

The engine and drive train materials are the highest quality possible in a production automobile. The Vector’s power plant and power train materials and systems facilitate the production and transmission of much more power by size and weight than similarly sized automotive engines.

4.4 WHEELSThe Vector’s large diameter 19 to 20 inch three-piece modular wheels are unique. The wheel sections are light aluminum alloy, cold forged and unified by stainless steel rivets. Cold-forged modular wheels are substantially stronger than cast or spun aluminum wheels.


4.5 SAFETY SYSTEMSOccupant safety was one of the major design goals of the Vector design team, and aerospace methodology was integrated into these areas as well. Fuel is carried in a puncture resistant flexible tank bladder fabricated from an indestructible container with anti-sloshing open cell foam. The fuel cell is located within the confines of the rigid chassis cab section. All fluid lines on the Vector are stainless steel braided which drastically reduces the probability of fire in the event of a collision. Aerospace in- isolation materials reduce heat and noise transfer from the power plant to the internal cab section and trunk areas.

5. THE FUTURE The Vector/Avtech WX-8 automobile represents a extraordinary culmination of efforts by supportive materials and component manufacturers and a Vector technical group. The organization, California-based Vehicle Design Force, is an industrial design & engineering firm that has directed its most recent efforts toward the development of an automobile intended as a showcase for American technology. Past efforts in advance vehicle design have included participation in the development of the JETSKI WETBIKE and JETBIKE recreational water vehicles, the world’s only operational rocket belt, and the largest hot air blimp ever constructed. The advanced R & D company has also been responsible for preliminary design and research for advanced submersibles, motorcycles and sport aircraft, including WIG (wing-in-ground-craft) using composites.

The Vector/Avtech WX-2 represents the only state-of-the-art automobile of its kind, yet it will not remain static. As a truly state-of-the-art vehicle, it must continue to evolve. Vehicle Design Force will continue to interface with the technology accruing in the aerospace industry, as well as conducting its own research by using proven materials in creative and innovative applications. At present, new composite applications are being investigated including ceramic/fiber engine parts graphite gears and composite chassis and suspension parts are just a small sampling of future Vector technology.

6. CONCLUSIONAlthough the number of production Vectors will be limited due to price, the innovations that have risen out of Vector development promise to catalyze a significant spin-off market. It will set a definitive example for new materials usage throughout the automotive industry, and the vehicle oriented consumer market worldwide.

ACKNOWLEDGMENTSMr. Wiegert wishes to acknowledge the efforts of the American materials and Aerospace industries, and all other American and European companies and individuals which have directly or indirectly supported the goals, objectives and ideals of the Vector development program. Special thanks to several of these high technology companies for encouraging us to build and develop this very special North American built Supercar to combat foreign competitor in our market area and for the global market.

BIOGRAPHYGerald A. Wiegert attended Ferris University, The Center for Creative Studies, Northrop University and received his B.S. degree in Industrial Design from World Famous, Art Center College of Design in 1970. He was selected nationally by General Motors to participate as a design intern in advanced vehicle design at the G.M. Technical Center in Detroit. He has been a design director of several West Coast companies’s and an active design consultant for 35 years, during which he has participated in the design and development of the JetSki, WetBike, JetBike, RamWing, RocketBelt and consulted for dozens or companies including the Presidents of Toyota Motor Company, Tyler Camera Systems, Aura Systems, and many others. In 1972 he founded Vehicle Design Force, VDF an advanced vehicle and product design consulting company and heads all of its activities. Mr. Wiegert is responsible for the design, execution and engineering lay-out of the Vector W2 and W8 TwinTurbo, Vector Avtech Supercars and the all new Vector/Avtech WX-8 Vector Motors Supercar. Mr. Wiegert is an expert in the field of Wing-In-Ground-Effect (WIG) flying craft – an all new field of technology that represents a new form of transportation.


CONFIDENTIAL DISCLOSURE AGREEMENT

THIS AGREEMENT is made as of the __________day of_________, 2007, by and between _______________________________ and Vector Motors Corporation (“Vector Motors Corporation”) (collectively, the “Parties” or individually a “Party”).

WHEREAS, _____________________________ desires to obtain certain confidential and proprietary information from Vector Motors Corporation for the purpose of evaluating potential business opportunities with Vector Motors Corporation;

WHEREAS, Vector Motors Corporation agrees to provide Confidential Information (as hereinafter defined) for __________________________ review and evaluation subject to the terms and conditions of this Agreement; and

WHEREAS, in reviewing and assessing the confidential and proprietary information from Vector Motors Corporation, ____________________________ may provide Confidential Information (as hereinafter defined) to Vector Motors Corporation.

NOW, THEREFORE, in consideration of the foregoing premises, the Parties agree as follows:

1. Definitions. For the purposes of this Agreement the following definitions shall apply:

(a) “Confidential Information” shall mean (1) information or material proprietary to either Party of which the other Party may obtain knowledge or access; and/or (2) any information or data relating to the subject matter of the Parties’ dealings or to the Parties’ business or affairs which is communicated as confidential and which is disclosed by one Party to the other Party. For purposes of clarification, and not by way of limitation, “Confidential Information” includes, but is not limited to, the following types of information and other information of a similar nature, whether or not set forth in a writing: discoveries, ideas, concepts, papers, software, various stages of development, designs, drawings, specifications, techniques, models, prototypes, equipment, manufacturing processes or techniques, data, source code, object code, documentation, manuals, diagrams, flowcharts, schematics, research, processes, procedures, functions, “know-how”, marketing techniques and materials, marketing and development plans, customer names and other information related to customer price lists, pricing policies, sales information, marketing information, or customer lists or data, and any and all financial information or reports, whether or not patented or copyrighted. “Confidential Information” shall also include any information described as proprietary or designated as Confidential Information, whether or not owned, licensed by, or developed by either Party, and whether or not copyrighted or patented, or information disclosed to either Party by any third party which information either Party is obligated to treat as confidential or proprietary information. Information or data disclosed to either party, whether said disclosure is oral, visual or written, shall be deemed “Confidential Information” unless the confidentiality of same is expressly waived in writing by the Party disclosing the Confidential Information.


(b) “Confidential Information” shall not include:

(i) Information that is now or subsequently becomes generally publicly known or available by publication, commercial use, or otherwise, through no act or fault on the part of the other Party; and

(ii) Information that is known by the receiving Party at the time of receiving such information as verified by documents in the receiving Party’s possession, or information that is hereafter rightfully furnished to the receiving Party by a third party without breach of any separate non-disclosure obligation with the disclosing Party.

2. Disclosure of Confidential Information.

(a) The Parties shall maintain in strict confidence the Confidential Information and shall exercise equivalent security measures and degree of care as those which that Party applies or would apply to its own Confidential Information.

(b) The Confidential Information may be disclosed only to the employees, directors, or consultants of either Party having the need to know the same and where such employees, directors, or consultants are bound by similar restrictions of confidentiality not to disclose the same.

(c) The Parties agree not to copy, reproduce, or reduce to writing any part of the Confidential Information without the other Parties’ prior written consent, except as is necessary for review and evaluation and all such copies, reproductions, or reductions to writing shall be the property of the disclosing Party, nor shall the receiving Party disclose any Confidential Information to any third parties without the disclosing Party’s prior written consent.

(d) Each Party agrees not to analyze or have analyzed, nor to carry out reverse engineering of the composition, structure and design of any Confidential Information of the other Party, beyond the analysis contemplated by this Agreement.

(e) Nothing in this Agreement shall be construed as requiring either Party to disclose Confidential Information to the other Party or, to grant rights under licenses, or to render any technical assistance.

(f) In the event either Party is ordered by any court of law or administrative tribunal to disclose any Confidential Information, that Party shall provide written notice of the forced disclosure as soon as practicable to the other Party, but in any event, at least fifteen (15) days prior to the actual disclosure or court filing. The Parties agree to use best efforts to protect the confidentiality of Confidential Information.

3. Ownership. All Confidential Information disclosed by a Party shall, between the Parties, remain the property of the disclosing Party. Neither Party grants or extends to the other Party any rights of any kind under any patent, copyright, trademark, or other intellectual property right that the Party may now have or may hereafter obtain with respect to Confidential Information. The Parties shall make no commercial use of the other Party’s Confidential Information without prior written consent, which consent may be arbitrarily withheld. Nothing in this Agreement shall preclude, impair, or restrict either Party from continuing to engage in its business except and to the extent of breach of the terms of this Agreement. The Parties make no representations or warranties in respect of any Confidential Information provided to the other Party but shall provide such Confidential Information in good faith.


4. Use. The Parties shall use the Confidential Information only for purposes of review and evaluation, unless otherwise agreed to by the disclosing Party in writing, and shall keep confidential and not disclose the Confidential Information to any other person, firm or corporation, except as provided in this Agreement.

5. Termination. The obligations of the Parties hereunder shall commence upon execution of this Agreement and shall continue for five (5) years. Upon request by the disclosing Party, the receiving Party shall destroy all copies of any Confidential Information in its possession or control and furnish the disclosing Party with written certification of destruction.

6. Remedies for Breach. The Parties agree that the disclosing Party will suffer irreparable harm if the Party receiving Confidential Information fails to comply with its obligations herein, and further agree that monetary damages alone will be inadequate to compensate the disclosing Party for any such breach. The Parties agree that, among other legal and equitable remedies available, the disclosing Party will be entitled to immediate injunctive relief to enforce the provisions of this Agreement.

7. Assignment. The Parties shall not assign this Agreement (or any portion hereof) without the prior written consent of the other Party. Any assignment without such consent shall be void and a material breach of this Agreement. Subject to the foregoing, this Agreement shall be binding upon the successors and authorized assigns of each Party and shall inure to the benefit of the successors, affiliates, subsidiaries, parent companies and related entities of both Parties.

8. Amendments; Interpretation. This Agreement may not be modified orally or in any other manner than by an agreement in writing signed by the Parties hereto or their respective successors in interest. This Agreement shall be construed without regard to the identity of the drafter and as though Nova Communications and Vector Motors participated equally in drafting the same.

9. Non-Waiver. No failure by either Party at any time to give notice of any breach by the other Party or to require compliance with any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or any prior or subsequent time.

10. Notices. Any notice given hereunder shall be in writing and delivered by personal service, or by certified or registered first class mail, or by facsimile with a copy by first class mail to the addresses specified below. If to Vector Motors Corporation:

Vector Motors Corporation400 N. Marine Ave.Wilmington, California 90744Attention: Gerald R. WiegertFax No.: 310-522-6611Phone: 310-522-6610Email: [email protected]

to: ____________________________________________________________________________________________________________________________________

Either Party may change its address provided above by notifying the other Party in the manner provided above. In the case of personal delivery, such transmittal shall be deemed to have been received by the recipient on the date of such delivery. In the case of delivery via facsimile, the transmittal shall be deemed to have been received on the day following the date of communication by facsimile.


11. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California to the exclusion of the laws of all other jurisdictions. Should any disputes between the Parties develop as a result of or arising out of this Agreement, the Parties agree to resolve such disputes in the Court system of Los Angeles County for jurisdictional purposes.

12. Entire Agreement. This Agreement represents the entire Agreement and expression of the Agreement by and between Nova Communications and Vector Motors Corporation. The Parties also intend this Agreement to be fully integrated and it constitutes a full and final expression of the Parties’ understanding. All prior and contemporaneous agreements, representations and otherwise, whether oral or written, are merged in this Agreement.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

_____________________________________

_____________________________________Name:Title:

VECTOR MOTORS CORPORATION

_____________________________________ Gerald A. WiegertCEO

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