VirTra Inc (VTSI)

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Land purchase to build a new headquarters!!

During 2009, VirTra management became aware of a unique piece of land that was the right size for a future VirTra
headquarters, positioned in a good location, and was offered at a very attractive price by a motivated seller.
Due to the debt owed to the IRS, the entity of VirTra Systems, Inc. was unable to purchase the land directly.
On December 8, 2009 Ferris Properties, LLC. (owed by Bob Ferris, CEO of VirTra and Nichieli Ferris) signed a promissory
note for the purchase of approximately 2.2 acres of improved land in Chandler, Arizona from McClintock and Galveston, LLC.
The intention is to eliminate the IRS debt and, in the future, obtain a building loan to begin construction of a VirTra
headquarter building on this land.
The purchase price for the land is $695,000, approximately $160,000 has already been invested. The remaining amount owed
is in the form of a $535,000 loan from the seller to Ferris Properties, LLC and must make interest-only payments at a rate of
4% per annum ($1,783.33 per month) starting on December 8, 2009 until November 30, 2010. If the building loan has not
begun by November 30th, 2010, then Ferris Properties would pay $10,000 per month plus 5.5% per annum until June 1, 2011
at which time the note is due unless renegotiated.
The transaction is a straight pass-through, whereby Ferris Properties, LLC charges no fees and no expenses to VirTra Systems.
All costs and payments imposed by the seller (McClintock and Galveston, LLC) are paid by VirTra Systems, Inc. As soon as
permitted, the liability, deed and 100% ownership interest in the land will be transferred to VirTra Systems at no profit to
Ferris Properties, LLC.