<PAGE>

                                                                  EXHIBIT 10.16




                       REDLINE PERFORMANCE PRODUCTS, INC.

                                   ----------

                      BRIDGE LOAN AND INVESTMENT AGREEMENT

                                   ----------


                                  INSTRUCTIONS

         To purchase a 10% Secured Convertible Subordinated Promissory Note from
Redline Performance Products, Inc. please: (i) review the Bridge Loan and
Investment Agreement; (ii) complete Section 14 of the Bridge Loan and Investment
Agreement regarding accredited investor status; (iii) complete Section 22 of the
Bridge Loan and Investment Agreement regarding relationships to brokerage firms;
(iv) complete, sign and date the appropriate signature page (individual
subscribers should complete, sign and date the individual signature page; entity
subscribers should complete, sign and date the entity signature page) and (v)
send your check payable to "Redline Performance Products, Inc." together with
the completed Bridge Loan and Investment Agreement and Security Agreement
signature page to Redline Performance Products, Inc., 2520 Fortune Way, Vista,
California 92083. Information regarding the Bridge Placement may be obtained by
contacting Kent Harle, President at (760) 599-1003.





<PAGE>

                       REDLINE PERFORMANCE PRODUCTS, INC.

                      BRIDGE LOAN AND INVESTMENT AGREEMENT

         This Bridge Loan and Investment Agreement (the "AGREEMENT"), submitted
as of the date set forth on the Signature Page, is between Redline Performance
Products, Inc., a Minnesota corporation (the "COMPANY"), and the undersigned
investor (the "INVESTOR").

                                    RECITALS

         The Company needs capital to fund its operations. The Investor desires
to lend funds to the Company on the terms and conditions set forth in this
Agreement. Investors may lend up to $500,000 in principal amount to the Company
on terms and conditions equivalent to those set forth in this Agreement (the
"BRIDGE PLACEMENT").

                                    AGREEMENT

         In consideration of the foregoing, the mutual promises set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1. Investment. The Investor hereby tenders the Investor's check payable to
"Redline Performance Products, Inc." in the aggregate dollar amount set forth on
the Signature Page to purchase:

         a. a 10% Secured Convertible Subordinated Promissory Note (the "BRIDGE
         NOTE"), in substantially the form of EXHIBIT A attached to and
         incorporated into this Agreement, which is convertible into securities
         of the Company as may be offered to the Investor, or to other potential
         investors, from time to time (the "CONVERSION SECURITIES"), in the
         principal dollar amount set forth on the Signature Page and

         b. a warrant (the "BRIDGE WARRANT") in substantially the form of
         EXHIBIT B attached to and incorporated into this Agreement, to purchase
         Fifty Thousand (50,000) shares of the Company's $0.01 par value per
         share common stock (the "COMMON STOCK") for every $100,000 in principal
         amount of the Bridge Note (the "WARRANT SHARES").

         c. In addition, Kent Harle, William Savage and Chris Rodewald
         (collectively, the "FOUNDERS'") will collectively sell to each Investor
         25,000 shares of the Company's Common Stock currently held by the
         Founders' (the "FOUNDERS' SHARES"), at a price of $0.01 per share, for
         every $100,000 in principal dollar amount of the Bridge Notes. One half
         (50%) of the Founders' Shares will be issued upon closing of this
         Bridge Placement. The balance of the Founders' Shares will be issued
         upon conversion of the principal amount of the Bridge Notes into equity
         securities of the Company. If there is no conversion of the Bridge Note
         into equity securities of the Company, the right to purchase the
         remaining one half (50%) of the Founders' Shares will be forfeited.

         d. The Bridge Note is secured by certain collateral of the Company
         pursuant to a security agreement (the "SECURITY AGREEMENT"), in
         substantially the form of EXHIBIT C attached to and incorporated into
         this Agreement.

         e. The information contained in this Agreement is only a summary of the
         terms and provisions of the Bridge Notes, the Bridge Warrants and the
         Security Agreement, and is qualified by more detailed information
         included in the form of Bridge Note, the form of Bridge Warrant and the
         form of Security



                                       1.
<PAGE>

         Agreement. If the terms of this Agreement conflict with the terms of
         the Bridge Note, the Bridge Warrant or the Security Agreement, the
         terms of the Bridge Note, the Bridge Warrant and Security Agreement
         shall control. By execution of this Agreement, the Investor
         acknowledges that the Company is relying upon the accuracy and
         completeness of the representations contained in this Agreement in
         complying with its obligations under applicable securities laws. The
         Bridge Note, the Bridge Warrant, the Founders' Shares, the Conversion
         Securities and the Warrant Shares are collectively referred to in this
         Agreement as the "SECURITIES."

         f. If the Investor purchases a Bridge Note in an amount which is not
         divisible by $100,000, the Investor shall receive a pro rata number of
         Founders' Shares and Warrant Shares under the Bridge Note based on the
         amount of the Bridge Note.

2. Loan/Promissory Note. The Investor agrees, on the terms and subject to the
conditions hereinafter set forth, to purchase a Bridge Note in the principal
amount set forth on the Signature Page. The Company agrees to issue in the name
of the Investor, a Bridge Note.

3. Payment of Principal and Interest. All outstanding principal and accrued
interest on the Bridge Notes shall be due and payable by the Company on the date
One Hundred Twenty (120) days from the date of original issuance of the Bridge
Note (the "MATURITY DATE" or "MATURITY".) The Bridge Note shall accrue interest
at the rate of ten percent (10%) per annum, compounded monthly.

4. Subordination. The payment of principal and interest under the Bridge Note is
subordinated to the payment by the Company of any amounts due to any bank or
other commercial lender pursuant to any existing or future loan. The Investor's
rights in any collateral shall also be subordinate to any security interest
requested by a bank or other commercial lender providing a loan to the Company
in the future. Payment of principal or interest may not be made on the Bridge
Note if the Company is in default, or if the making of any payment would result
in a default, with respect to the payment of amounts of any bank or commercial
lender debt.

5. Conversion. All of the principal and the accrued interest payable pursuant to
each Bridge Note are convertible, at the option of the Investor, into the
Conversion Securities at any time during the term of the Bridge Note.

6. Default. The Company shall be in default under this Agreement and under the
Bridge Note upon the happening after the date of this Agreement of any
nonpayment, when due, of any amount payable to the holder under the Bridge Note.
In the event of a default: (a) the holders of Bridge Notes shall have the right,
at their option and not subject to demand or notice, to declare all or any part
of the Bridge Notes immediately due and payable, and (b) the holders of Bridge
Notes may exercise, in addition to the rights and remedies granted in this
Agreement, all of the rights and remedies of a holder under the Bridge Note and
under applicable law. In addition, upon default, the interest rate of the Bridge
Note shall be 15% per annum, which rate shall apply from the date of the
original issuance of the Bridge Note.

7. Collateral. The Company will grant the Investors a security interest in the
Company's existing and future intellectual property and its tooling, pursuant to
a Security Agreement. This security interest in the collateral will also be used
to secure up to an additional Six Million Dollars ($6,000,000) in convertible
debt which the Company anticipates it will receive on or before November 1, 2001
(the "FUTURE DEBT"). All Investors and Future Debt holders will have a security
interest in the collateral on a pari passu basis in proportion to the dollar
amount of Future Debt or Bridge Notes held.



                                       2.
<PAGE>

8. Bridge Warrant. In conjunction with the purchase of a Bridge Note by the
Investor, the Company will issue to the Investor a Bridge Warrant in
substantially the form attached to this Agreement as Exhibit B. The Bridge
Warrant will entitle the Investor to purchase Fifty Thousand (50,000) shares of
Common Stock for every $100,000 in principal amount of the Bridge Notes. If the
Investor purchases a Bridge Note in an amount which is not divisible by
$100,000, the Investor shall receive a pro rata number of Warrant Shares under
the Bridge Note based on the amount of the Bridge Note. The Bridge Warrant will
have an exercise price of $1.25 per share and will expire seven (7) years from
the date of issuance.

9. Founders' Stock. The Founders' will collectively sell to each Investor 25,000
Founders' Shares for every $100,000 in principal dollar amount of the Bridge
Notes. One half (50%) of the Founders' Shares will be issued upon issuance of
the Bridge Note. The balance will be issued upon conversion of the principal
amount of the Bridge Notes into debt or equity securities of the Company. If
there is no conversion of the Bridge Note into debt or equity securities of the
Company, the right to purchase the remaining one half (50%) of the Founders'
Shares will be forfeited. If the Investor purchases a Bridge Note in an amount
which is not divisible by $100,000, the Investor shall receive a pro rata number
of Founders' Shares based on the amount of the Bridge Note.

10. Reservation of Shares of Common Stock. The Company shall, during the time
that the Bridge Note, the Conversion Securities or the Bridge Warrant remain
outstanding, reserve and keep available from its authorized but unissued shares
of capital stock, a sufficient number of shares to issue the shares of capital
stock issuable upon conversion of the Bridge Notes or exercise of the Bridge
Warrants.

11. Transfer Restrictions. The Securities shall be subject to certain
restrictions on transfer as identified in this Agreement, the Bridge Note and
the Bridge Warrant.

12. Representations and Warranties of the Company. The Company represents and
warrants to the Investor the following:

         a. The Company is duly organized, validly existing and in good standing
         under the laws of the State of Minnesota.

         b. This Agreement has been duly authorized by all necessary corporate
         action on behalf of the Company, has been duly executed and delivered
         by an authorized officer of the Company, and is a valid and binding
         agreement on the part of the Company. All corporate action necessary to
         the authorization, issuance, and delivery of the Securities will be
         taken prior to issuance of the Securities.

13. Representations and Warranties of Investor. The Investor hereby represents
and warrants to the Company and its officers, directors, shareholders, employees
and agents as follows:

         a. Information About the Company. The Investor has received and
         reviewed the Company's Confidential Private Placement Memorandum dated
         March 20, 2001 and Supplement No. 1 thereto dated August 17, 2001, and
         has obtained all information about the Company as the Investor believes
         relevant to the decision to purchase the Securities. The Investor has
         also had the opportunity to ask questions of, and receive answers from,
         the Company or an agent or a representative of the Company concerning
         the terms and conditions of the investment and the business and affairs
         of the Company and to obtain any additional information necessary to
         verify such information, and the Investor has received such information
         concerning the Company as the Investor considers necessary or advisable
         in order to form a decision concerning an investment in the Company.



                                       3.
<PAGE>

         b. Forward-Looking Information. The Investor acknowledges and
         understands that any information provided about the Company's future
         plans and prospects is uncertain and subject to all of the
         uncertainties inherent in predictions.

         c. No Review by Federal or State Regulators. The Investor understands
         that this transaction has not been reviewed or approved by the United
         States Securities and Exchange Commission (the "COMMISSION") or by any
         state securities or other authority and, because of the small number of
         persons solicited to invest in the Securities and the private nature of
         the placement, that all documents, records, and books pertaining to
         this investment have been made available to the Investor and the
         Investor's representatives, such as attorneys, accountants and/or
         purchaser representatives.

         d. High Degree of Risk. The Investor realizes that this investment
         involves a high degree of risk, including the risk of loss of all
         investment in the Company.

         e. Ability to Bear the Risk. The Investor is able to bear the economic
         risk of the investment, including the total loss of such investment.

         f. Appropriate Investment. The Investor believes, in light of the
         information provided pursuant to Subsection 13(a) above, that investing
         funds pursuant to the terms of this Agreement is an appropriate and
         suitable investment for the Investor.

         g. Financial Condition. The Investor's current financial condition is
         such that (and the Investor expects the Investor's financial condition
         to be such that in the near future) the Investor does not have any
         present or contemplated need to dispose of any portion of the
         Securities to satisfy any existing or contemplated undertaking, need or
         indebtedness.

         h. Business Sophistication. The Investor is experienced and
         knowledgeable in financial and business matters to the extent that the
         Investor is capable of evaluating the merits and risks of the
         prospective investment in the Securities. The Investor has obtained, to
         the extent the Investor deems necessary, personal and professional
         advice with respect to the risks inherent in the investment in the
         Securities in light of the Investor's financial condition and
         investment needs. The Investor has been given access to full and
         complete information regarding the Company and has utilized such access
         to its satisfaction for the purpose of obtaining information and,
         particularly, the Investor has obtained, and has had the opportunity to
         obtain, information from the Company as set forth in paragraph 13(a)
         above.

         i. Residency. The Investor is a resident of the state and country set
         forth on the Signature Page. The Securities are being purchased by the
         Investor in the Investor's name solely for the Investor's own
         beneficial interest and not as nominee for, on behalf of, for the
         beneficial interest of, or with the intention to transfer to, any other
         person, trust, or organization.

         j. Subscription. The Investor understands that the payment made to the
         Company will immediately become funds of and may be used by the Company
         once accepted. The Company is free to reject any subscription in whole
         or in part not later than the date fifteen (15) days from the date the
         Investor executes this Agreement. The Investor understands that if the
         Company determines to reject this subscription, any funds returned to
         the Investor will be without deduction therefrom or interest thereon.

         k. No General Solicitation. The Investor's purchase of the Securities
         is not the result of any general solicitation or general advertising,
         including, but not limited to (i) any advertisement, article, notice or



                                       4.
<PAGE>

         other communication published in any newspaper, magazine or similar
         media or broadcast over television or radio; and (ii) any seminar or
         meeting whose attendees have been invited by any general solicitation
         or general advertising.

         l. Legal Age. The Investor, if an individual, is of legal age.

         m. Not Subject to Backup Withholding. The Investor certifies, under
         penalty of perjury, that the Investor is not subject to the backup
         withholding provisions of the Internal Revenue Code of 1986, as
         amended. (Note: The Investor is subject to backup withholding if: (i)
         the Investor fails to furnish its Social Security Number or Taxpayer
         Identification Number herein; (ii) the Internal Revenue Service
         notifies the Company that the Investor furnished an incorrect Social
         Security Number or Taxpayer Identification Number; (iii) the Investor
         is notified that it is subject to backup withholding; or (iv) the
         Investor fails to certify that it is not subject to backup withholding
         or the Investor fails to certify the Investor's Social Security Number
         or Taxpayer Identification Number.)

         n. Legal Representation. The Investor understands that: (i) the Company
         has engaged legal counsel to represent the Company in connection with
         the offer and sale of securities contemplated herein: (ii) legal
         counsel engaged by the Company does not represent the Investor or the
         Investor's interests; and (iii) the Investor is not relying on legal
         counsel engaged by the Company. The Investor has had the opportunity to
         engage, and obtain advice from, the Investor's own legal counsel with
         respect to the investment contemplated herein.

THE INFORMATION REQUESTED IN PARAGRAPH 14 IS REQUIRED IN CONNECTION WITH THE
EXEMPTIONS FROM THE SECURITIES ACT OF 1933 AND STATE LAWS BEING RELIED ON BY THE
COMPANY WITH RESPECT TO THE OFFER AND SALE OF THE SECURITIES. ALL OF SUCH
INFORMATION WILL BE KEPT CONFIDENTIAL, AND WILL BE REVIEWED ONLY BY, THE
COMPANY, THE AGENT AND THEIR RESPECTIVE COUNSEL. The Investor agrees to furnish
any additional information which the Company and its counsel deems necessary in
order to verify the response set forth below.

14. Accredited Status. The Investor represents and warrants as follows (please
INITIAL all applicable items):

         a. INDIVIDUALS:

                  DGM      (i) The Investor is an individual with a net worth,
                           or a joint net worth together with his or her spouse,
                           in excess of $1,000,000. (In calculating net worth,
                           you may include equity in personal property and real
                           estate, including your principal residence, cash,
                           short-term investments, stock and securities. Equity
                           in personal property and real estate should be based
                           on the fair market value of such property less any
                           debt secured by such property.)

                  DGM      (ii) The Investor is an individual that had an
                           individual income in excess of $200,000 in each of
                           the prior two years and reasonably expects an income
                           in excess of $200,000 in the current year.



                                       5.
<PAGE>

                  ___      (iii) The Investor is an individual that had with his
                           or her spouse joint income in excess of $300,000 in
                           each of the prior two years and reasonably expects
                           joint income in excess of $300,000 in the current
                           year.

                  DGM      (iv) The Investor is a director or executive officer
                           of the Company.

         b. ENTITIES (PLEASE PROVIDE A COPY OF THE ENTITY'S CHARTER DOCUMENTS):

                  ___      (i) The Investor is a (initial one):

                              ___ (A) General Partnership

                              ___ (B) Limited Liability Partnership

                              ___ (C) Limited Partnership

                              ___ (D) Limited Liability Company

                              ___ (E) Corporation

                              ___ (F) Business Trust

                              ___ (G) Other Entity (please specify):____________

                  ___      (ii) The Investor is an entity, and is an "ACCREDITED
                           INVESTOR" as defined in Rule 501(a) of Regulation D
                           under the Securities Act of 1933, as amended (the
                           "ACT"). This representation is based on the following
                           (initial one or more, as applicable):

                              ___  (A) The Investor (or, in the case of a trust,
                                   the Investor trustee) is a bank or savings
                                   and loan association as defined in Sections
                                   3(a)(2) and 3(a)(5)(A), respectively, of the
                                   Act acting either in its individual or
                                   fiduciary capacity.

                              ___  (B) The Investor is a broker/dealer
                                   registered pursuant to the Securities
                                   Exchange Act of 1934.

                              ___  (C) The Investor is an insurance company as
                                   defined in Section 2(13) of the Act.

                              ___  (D) The Investor is an investment company
                                   registered under the Investment Company Act
                                   of 1940 or a business development company as
                                   defined in Section 2(a)(48) of that Act.

                              ___  (E) The Investor is a Small Business
                                   Investment Company licensed by the U.S. Small
                                   Business Administration under Section 301(c)
                                   or (d) of the Small Business Investment Act
                                   of 1958.

                              ___  (F) The Investor is an employee benefit plan
                                   within the meaning of Title I of the Employee
                                   Retirement Income Security Act of 1974 and
                                   either (initial one or more, as applicable):

                                   ___  (1) The investment decision is made by a
                                        plan fiduciary, as defined in Section
                                        3(21) of such Act, which is either a
                                        bank, savings and loan association,
                                        insurance company, or registered
                                        investment adviser.

                                   ___  (2) The employee benefit plan has total
                                        assets in excess of $5,000,000.

                                   ___  (3) The plan is a self-directed plan
                                        with investment decisions made solely by
                                        persons who are "Accredited Investors"
                                        as defined under the Act.



                                       6.
<PAGE>

                              ___  (G) The Investor is a private business
                                   development company as defined in Section
                                   202(a)(22) of the Investment Advisers Act of
                                   1940.

                              ___  (H) The Investor has total assets in excess
                                   of $5,000,000, was not formed for the
                                   specific purpose of acquiring shares of the
                                   Company and is one or more of the following
                                   (initial one or more, as appropriate):

                                   ___  (1) An organization described in Section
                                        501(c)(3) of the Internal Revenue Code.

                                   ___  (2) A corporation.

                                   ___  (3) A Massachusetts or similar business
                                        trust.

                                   ___  (4) A partnership.

                                   ___  (5) A limited liability company.

                              ___  (I) The Investor is an entity, all of whose
                                   equity owners are accredited investors.
                                   (PLEASE PROVIDE WRITTEN REPRESENTATION OF
                                   ACCREDITED INVESTOR STATUS FROM EACH EQUITY
                                   OWNER.)

                              ___  (J) The Investor is a trust with total assets
                                   exceeding $5,000,000, which was not formed
                                   for the specific purpose of investing in the
                                   Company and whose purchase is directed by a
                                   person described in Rule 506(b)(2)(ii) under
                                   the Act. (IF ONLY THIS ITEM (J) IS CHECKED,
                                   PLEASE CONTACT THE COMPANY TO RECEIVE AND
                                   COMPLETE AN INFORMATION STATEMENT BEFORE THIS
                                   SUBSCRIPTION CAN BE CONSIDERED BY THE
                                   COMPANY).

IF YOU HAVE NOT INITIALED ANY OF THE FOREGOING, YOU ARE NOT AN ACCREDITED
INVESTOR AND CANNOT PURCHASE ANY SECURITIES.

         IF YOU HAVE INITIALED ANY OF THE FOREGOING, PLEASE PROCEED.

                  ___      (iii) Entities. A REPRESENTATIVE OF AN ENTITY
                           INVESTOR MUST INITIAL HERE If the Investor is an
                           entity, the individual(s) signing on behalf of the
                           Investor and the Investor, jointly and severally,
                           agree and certify that this Agreement has been duly
                           authorized by all necessary action on the part of the
                           Investor, has been duly executed by an authorized
                           representative of the Investor, and is a legal,
                           valid, and binding obligation of the Investor
                           enforceable in accordance with its terms.

15. Investment Purpose in Acquiring the Securities. The Investor and the Company
acknowledge that the Securities have not been registered under the Act or
applicable state securities laws and that the Securities will be issued to the
Investor in reliance on exemptions from the registration requirements of the Act
and applicable state securities laws and in reliance on the Investor's and the
Company's representations and agreements contained herein. The Investor is
acquiring the Securities for the account of the Investor for investment purposes
only and not with a view to their resale or distribution. The Investor has no
present intention to divide his, her or its participation with others or to
resell or otherwise dispose of all or any part of the Securities. In making
these representations, the Investor understands that, in the view of the
Commission, exemption of the Securities from the registration requirements of
the Act would not be available if, notwithstanding the representations of the
Investor, the Investor has in mind merely acquiring the Securities for resale
upon the occurrence or non-occurrence of some predetermined event.



                                       7.
<PAGE>

16. Compliance with Securities Act. The Investor agrees that if the Securities
or any part thereof are sold or distributed in the future, the Investor shall
sell or distribute them pursuant to the requirements of the Act and applicable
state securities laws. The Investor agrees that the Investor will not transfer
any part of the Securities without: (i) obtaining a "no action" letter from the
Commission and applicable state securities commissions; (ii) obtaining an
opinion of counsel satisfactory in form and substance to the Company to the
effect that such transfer is exempt from the registration requirements under the
Act and applicable state securities laws; or (iii) registration.

17. Restriction on Transfer After a Public Offering. The Investor understands
that the Company at a future date may file a registration or offering statement
(the "REGISTRATION STATEMENT") with the Commission to facilitate a public
offering of its securities. The Investor agrees, for the benefit of the Company,
that should such an initial public offering be made and should the managing
underwriter of such offering require, the Investor will not, without the prior
written consent of the Company and such underwriter, during the "Lockup Period"
as defined herein: (i) sell, transfer or otherwise dispose of, or agree to sell,
transfer or otherwise dispose of any of the Securities beneficially owned by the
Investor during the Lockup Period; (ii) sell, transfer or otherwise dispose of,
or agree to sell, transfer or otherwise dispose of any options, rights or
warrants to purchase any of the Securities beneficially owned by the Investor
during the Lockup Period; or (iii) sell or grant, or agree to sell or grant,
options, rights or warrants with respect to any of the Securities. The foregoing
does not prohibit gifts to donees or transfers by will or the laws of descent to
heirs or beneficiaries provided that such donees, heirs and beneficiaries shall
be bound by the restrictions set forth herein. The term "LOCKUP PERIOD" shall
mean the lesser of (x) 180 days and (y) the period during which Company officers
and directors are restricted by the managing underwriter from effecting any
sales or transfers of the Company's common stock. The Lockup Period shall
commence on the effective date of the Registration Statement.

18. Restrictive Legend. The Investor agrees that the Company may place one or
more restrictive legends on any certificates evidencing the Securities,
including the Conversion Shares, containing substantially the following
language:

         The securities represented by this certificate have not been registered
         under the Securities Act of 1933, as amended, have not been registered
         under any state securities law, and are subject to a subscription and
         investment representation agreement. They may not be sold, offered for
         sale, transferred, assigned, pledged or otherwise distributed for value
         unless there is an effective registration under the Securities Act of
         1933, as amended, and under the applicable state securities laws, or
         the Company receives an opinion of counsel acceptable to the Company
         stating that such transaction is exempt from registration and
         prospectus delivery requirements of the Securities Act of 1933, as
         amended, and under the applicable state securities laws.

         Sale or other transfer of these securities is further restricted for up
         to 180 days following an initial public offering of securities of the
         Company by the terms of a Subscription Agreement, a copy of which is
         available for inspection at the offices of the Company.

19. Stop Transfer Order. The Investor agrees that the Company may place a stop
transfer order with its registrar and transfer agent (if any) covering all
Securities.

20. Knowledge of Restrictions upon Transfer of the Securities. The Investor
understands that the Securities are not freely transferable and may in fact be
prohibited from sale for an extended period of time and that, as a consequence
thereof, the Investor must bear the economic risk of an investment in the
Securities for an



                                       8.
<PAGE>

indefinite period of time and may have extremely limited opportunities to
dispose of the Securities. The Investor realizes that there will likely be no
market for the Securities, and that there are significant restrictions on the
transferability thereof.

21. Lack of Availability of Rule 144 Under the Act.

         a. The Investor understands and acknowledges that the Company has no
         obligation to undertake or complete a public offering of its
         securities, that even if a public offering is undertaken and
         successfully completed, the Securities subscribed for hereby will
         remain subject to the restrictions on transferability described herein,
         and that even if a public offering is undertaken and completed, the
         Investor may never be able to sell its Securities pursuant to Rule 144
         under the Act. The Investor further understands and acknowledges that
         the Company currently does not file periodic reports with the
         Commission pursuant to the requirements of Sections 13 or 15(d) of the
         Securities Exchange Act of 1934, and may not be obligated to file such
         reports at any time in the future. The Investor also understands that
         the Company has not agreed to supply such other information as would be
         required to enable routine sales of the Securities to be made under the
         provisions of certain rules respecting "restricted securities,"
         including Rule 144 promulgated under the Act by the Commission. Thus,
         the Investor has been informed that the Company is not obligated to
         make publicly available or to provide the Investor with the information
         required by Rule 144.

         b. The Company shall deliver to each Investor who holds a Bridge Note
         or Bridge Warrant, as soon as practicable, but in any event within one
         hundred twenty (120) days after the end of each fiscal year of the
         Company, an income statement for such fiscal year and a balance sheet
         of the Company as of the end of such year, such year-end financial
         reports to be in reasonable detail, prepared in accordance with
         generally accepted accounting principles, and audited and certified by
         independent public accountants selected by the Company. The Company
         shall also deliver to each Investor who holds a Bridge Note or Bridge
         Warrant within sixty (60) days after the end of each quarter, an
         unaudited income statement and balance sheet for and as of the end of
         such quarter. The covenants set forth in this paragraph shall terminate
         as to each holder of Bridge Notes and Bridge Warrants and be of no
         further force or effect immediately upon the Company becoming a
         reporting company under the Securities Exchange Act of 1934. Each
         recipient of information under this paragraph agrees that any
         information obtained pursuant to this paragraph will not be disclosed
         without the prior written consent of the Company.

22. Relationship to Brokerage Firms. (Please answer the following questions by
initialing the appropriate response):

         a. ___ YES X NO: Are you a director, officer, partner, branch manager,
         registered representative, employee, shareholder of, or similarly
         related to or employed by, a brokerage firm?

         b. ___ YES X NO: Is your spouse, father, mother, father-in-law,
         mother-in-law, or any of your brothers, sisters, brothers-in-laws,
         sisters-in-law or children, or any relative which you support, a
         director, officer, partner, branch manager, registered representative,
         employee, shareholder of, or similarly related to or engaged by, a
         brokerage firm?

         c. ___ YES X NO: Do you own 5% or more of the voting securities of any
         brokerage firm?



                                       9.
<PAGE>

         d. ___ YES ___ NO: If the Investor is an entity, is any director,
         officer, partner or 5% owner of the Investor also a director, officer,
         partner, branch manager, registered representative, employee,
         shareholder of, or similarly related to or employed by a brokerage
         firm?

         (If you answered YES to any of the foregoing questions, please attach a
         written explanation or contact the Company to provide additional
         information before the Investor's subscription can be considered.)

23. Delivery of Bridge Note, Bridge Warrant and Founders' Stock. Upon acceptance
of this Agreement by the Company, the Bridge Note, the Bridge Warrant and a
portion of the Founders' Shares will be registered in the name of the Investor
and will be delivered via certified mail or overnight delivery to the address of
the Investor set forth on the Signature Page.

24. Binding Effect. Neither this Agreement nor any interest herein shall be
assignable by the Investor without the prior written consent of the Company. The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto, and their respective heirs, legal representatives,
successors and assigns.

25. Representations to Survive Delivery. The representations, warranties and
agreements of the Company and of the Investor contained in this Agreement will
remain operative and in full force and effect and will survive the receipt of
funds by the Company, and the issuance to the Investor of the Bridge Notes and
Bridge Warrants.

26. Indemnification. The Investor agrees to indemnify the Company, and each
current and future officer, director, employee, agent and shareholder of the
Company, against and to hold them harmless from any damage, loss, liability,
claim or expense including, without limitation, reasonable attorneys' fees
resulting from or arising out of the inaccuracy or alleged inaccuracy of any of
the representations, warranties or statements of the Investor contained in this
Agreement, including without limitation any violation or alleged violation of
the registration requirements of the Act or applicable state law in connection
with any subsequent sale of the Securities or any portion thereof by Investor.

27. Additional Information. If at any time prior to the Company's execution of
this Agreement, an adverse change occurs with respect to the Investor such that
the information, representations and warranties of the Investor set forth in
this Agreement are no longer accurate, the Investor shall immediately notify the
Company of the inaccuracy in writing and shall deliver the updated, accurate
information to the Company.

28. Miscellaneous Provisions.

         a. Arbitration. Any dispute regarding this Agreement or the Investor's
         investment in the Company (including without limitation claims pursuant
         to federal or state securities laws), including any claim which is made
         against any placement agent or broker-dealer involved in the offer or
         sale of the Securities, shall be resolved by arbitration which shall be
         the sole forum for resolution of any such disputes. Unless otherwise
         agreed by the parties, any such proceedings shall be brought in
         Minneapolis, Minnesota U.S.A. pursuant to the Rules and Code of
         Arbitration of the American Arbitration Association, except that if a
         bona fide claim is made against the Company, and a placement agent or
         broker-dealer is named in connection with such claim, then such claim
         shall be brought pursuant to the Rules and Code of Arbitration of the
         National Association of Securities Dealers, Inc.

         b. Governing Law; Venue. This Agreement shall be governed by, and
         construed in accordance with, the substantive laws of the State of
         Minnesota without reference to Minnesota conflict of laws



                                      10.
<PAGE>

         provisions. Actions or proceedings litigated in connection with this
         Agreement, if any, shall be venued exclusively in the state and federal
         courts located in the County of Hennepin, State of Minnesota.

         c. Successors and Assigns. The representations and warranties made by
         the Investor in this Agreement are binding on the Investor's successors
         and assigns and are made for the benefit of the Company and any other
         person who may become liable for violations of applicable securities
         laws as a result of the inaccuracy or falsity of any of the Investor's
         representations or warranties.

         d. Notice. All notices or other communications required or permitted
         hereunder shall be in writing. A written notice or other communication
         shall be deemed to have been delivered hereunder: (i) if delivered by
         hand, when such notice is received from the notifying party; (ii) if
         transmitted by facsimile or timely delivered to an overnight courier,
         on the next business day following the day so transmitted or delivered;
         or (iii) if delivered by mail, on the third business day following the
         date such notice or other communication is deposited in the U.S. Mail
         for delivery by certified or registered mail addressed to the other
         party, or when actually received, whichever occurs earlier.

         e. Counterparts. This Agreement may be executed by the Company and by
         the Investor in separate counterparts, each of which shall be deemed an
         original.

         f. Acceptance. This Agreement is not binding on the Company until
         accepted in writing by an authorized officer of the Company.

                            (signature page follows)



                                      11.
<PAGE>

                            INDIVIDUAL SIGNATURE PAGE

         All individual Investors must complete and sign this page. If the
individual is investing through an Individual Retirement Account, then both the
individual investor and the IRA Custodian must sign this page. Total payment to
be made now is the amount on line 7. Where the Bridge Notes and Bridge Warrants
are to be held in joint tenancy or tenancy in common, BOTH PARTIES MUST SIGN AND
BOTH SOCIAL SECURITY NUMBERS SHOULD BE INDICATED.

1.   Investor Name(s) (please print): David G. Mell

2.   Social Security Number(s):

3.   Form of Ownership (e.g., individual, joint, tenants in common, community
     property): Individual

4.   Residence Address: 6579 Hwy 47 Alborn Minn 55702

5.   Mailing Address: 9211 Knollwood Dr. N. Stillwater Minn 55082

6.   Home: Tel. No. (651) 430-1065;          Facsimile No. (_____) _____________
     Business: Tel. No. (651) 271-0894;      Facsimile No. (_____) _____________

7.   Principal Amount of Bridge Note: $40,000

INVESTOR SIGNATURE: /s/ David G. Mell        SECOND SIGNATURE: _________________

Date of Signature: 12/1/02                 Date of Signature: __________________

IRA CUSTODIAN SIGNATURE (If applicable) ________________________________________

By (print name): ______________________________
                        IRA Custodian
Date: _________________________________________

ACCEPTANCE:

REDLINE PERFORMANCE PRODUCTS, INC. hereby executes this Agreement as of the date
set forth below.

By: /s/ Kent Harle
    Kent Harle, President

Dated: 12/12/02

PLEASE RETURN THIS BRIDGE LOAN AND INVESTMENT AGREEMENT AND PAYMENT TO:

Redline Performance Products, Inc.
2520 Fortune Way
Vista, California 92083
Attn: President




                                      12.
<PAGE>

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE AND ANY SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION THEREOF MAY BE
MADE ONLY (i) IN A REGISTRATION OR QUALIFICATION OR (ii) IF AN EXEMPTION FROM
REGISTRATION OR QUALIFICATION IS AVAILABLE AND THE BORROWER HAS RECEIVED AN
OPINION OF COUNSEL TO THAT EFFECT REASONABLY SATISFACTORY TO THE BORROWER.

SALE OR OTHER TRANSFER OF THIS PROMISSORY NOTE OR THE SHARES OF CAPITAL STOCK
ISSUABLE UPON CONVERSION OF THE OUTSTANDING PRINCIPAL AMOUNT OF THIS PROMISSORY
NOTE IS FURTHER RESTRICTED FOR UP TO 180 DAYS FOLLOWING AN INITIAL PUBLIC
OFFERING OF SECURITIES OF THE BORROWER BY THE TERMS OF A LOAN AND INVESTMENT
AGREEMENT, A COPY OF WHICH IS AVAILABLE FOR INSPECTION AT THE OFFICES OF THE
BORROWER.

                       REDLINE PERFORMANCE PRODUCTS, INC.

              10% SECURED CONVERTIBLE SUBORDINATED PROMISSORY NOTE

$40,000.00                                                     December 12, 2001
Note No.: RB-9                                                 Vista, California

         FOR VALUE RECEIVED, the undersigned, Redline Performance Products,
Inc., organized and existing under the laws of the State of Minnesota, whose
mailing address is 2520 Fortune Way, Vista, California 92083, and its successors
and assigns (the "BORROWER"), for value received, hereby unconditionally
promises to pay to the order of David G. Mell, individual, resident of the State
of Minnesota, having a mailing address of 9211 Knollwood Drive North,
Stillwater, Minnesota 55082, and the successors and assigns (the "LENDER"), at
such place as may be designated from time to time by the Lender, the principal
sum of Forty Thousand and 00/100 Dollars ($40,000.00), together with accrued
interest thereon, at the rate of ten percent (10%) per annum, compounded
monthly, at or before 5:00 p.m. Vista, California time on the date one hundred
twenty (120) days after the date of this Note ("MATURITY DATE"). This promissory
note (the "BRIDGE NOTE") is being issued in connection with a placement of
Bridge Notes and warrants to purchase shares of the Borrower's common stock (the
"BRIDGE WARRANT") being conducted by the Borrower to raise up to $500,000
pursuant to the terms of a Bridge Loan and Investment Agreement. This Bridge
Note and the Lender are entitled to all the benefits provided for in the Bridge
Loan and Investment Agreement, pursuant to which this indebtedness was incurred
and is to be repaid. The provisions of the Bridge Loan and Investment Agreement
are incorporated herein by reference with the same force and effect as if fully
set forth herein.

1. Payment. All outstanding principal and accrued interest on this Bridge Note
shall be due and payable on or before the Maturity Date. All payments under this
Section shall be made by



<PAGE>

check mailed by the Borrower to the address of the Lender set forth above.
Interest on the unpaid principal balance of this Bridge Note shall be calculated
on the basis of a 360-day year comprised of twelve 30-day months. If the
Borrower fails to pay all amounts outstanding under this Bridge Note on the
Maturity Date, the rate of interest under this Bridge Note shall be increased to
fifteen percent (15%) per annum and shall accrue from the date of this Bridge
Note until payment in full of all amounts due under this Bridge Note.

2. Subordination; Security. The term "SENIOR INDEBTEDNESS" shall mean all
principal of (and premium of, if any) and unpaid interest on all indebtedness of
the Borrower, and with respect to which the Borrower is a guarantor (but
excluding indebtedness guaranteed solely for the benefit of officers, directors,
employees or consultants of the Borrower), and except as provided to the
contrary herein, regardless of whether incurred on, before or after the date of
this Bridge Note: (i) for money borrowed from any bank, insurance company, or
other lending institution regularly engaged in the business of lending money,
whether or not secured; and (ii) in connection with any deferral, renewal or
extension of any indebtedness described in (i) above or any debentures, notes,
or other evidence of the Borrower's indebtedness issued in exchange for
indebtedness described in (i) above. The Borrower covenants and agrees and the
Lender, by acceptance hereof, covenants, expressly for the benefit of the
present and future holders of Senior Indebtedness, that the payment of the
principal and the interest on this Bridge Note is expressly subordinated in
right of payment to the payment in full of all principal and interest of Senior
Indebtedness of the Borrower. Notwithstanding the foregoing, payment of
principal or interest may be made hereunder unless the Borrower is in default,
or if the making of any payment hereunder would result in a default, with
respect to the payment of amounts of any Senior Indebtedness. Borrower's
repayment of all amounts outstanding under this Bridge Note shall be secured as
provided in that certain Security Agreement by and among Borrower and Lender.

3. Conversion. At the election of the Lender, all of the principal and accrued
interest payable pursuant to this Bridge Note may be converted into debt or
equity securities of the Borrower as may be offered to the Lender, or to other
potential lenders or investors of the Borrower, after the date of this Bridge
Note (the "CONVERSION SECURITIES"). The conversion price shall be the price at
which the Borrower is selling debt or equity securities to lenders or investors
or, if no such sales are taking place, the conversion price shall be the most
recent fair market price at which the Borrower has sold shares of common stock
or granted rights to purchase shares of common stock. Upon conversion the Lender
shall surrender this Bridge Note at the principal office of the Borrower. The
conversion shall be deemed to have been made at the close of business on the
date the Lender surrenders the Bridge Note at the principal office of the
Borrower. No fractional shares will be issued in connection with any conversion
of this Bridge Note. In lieu of any fractional share which would otherwise be
issuable, the Borrower shall pay cash. The conversion price shall be
appropriately adjusted in the event of any stock split, recapitalization or
similar transaction.

4. Compliance with Securities Laws and Other Transfer Restrictions.

     a. The Lender, by acceptance hereof, agrees, represents and warrants that
     this Bridge Note and the Conversion Securities which may be issued upon
     exercise hereof are being acquired for investment, that the Lender has no
     present intention to resell or otherwise dispose of all or any



                                       2
<PAGE>

     part of this Bridge Note or any Conversion Securities, and that the Lender
     will not offer, sell or otherwise dispose of all or any part of this Bridge
     Note or any Conversion Securities except under circumstances which will not
     result in a violation of the Securities Act of 1933 or applicable state
     securities laws. The Borrower may condition any transfer, sale, pledge,
     assignment or other disposition on the receipt, from the party to whom this
     Bridge Note is to be so transferred or to whom Conversion Securities are to
     be issued or so transferred, of any representations and agreements
     requested by the Borrower in order to permit such issuance or transfer to
     be made pursuant to exemptions from registration under federal and
     applicable state securities laws. Upon conversion of this Bridge Note, the
     Lender shall, if requested by the Borrower, confirm in writing Lender's
     investment purpose and acceptance of the restrictions on transfer of the
     Conversion Securities, as well as any representations and agreements
     requested by the Borrower in order to permit the issuance of Conversion
     Securities to be made pursuant to exemptions from registration under
     federal and applicable state securities laws.

     b. If the Borrower conducts an Initial Public Offering of its Common Stock,
     the Lender shall not, without the prior written consent of the Borrower and
     the managing underwriter in such offering: (i) sell, transfer or otherwise
     dispose of, or agree to sell, transfer or otherwise dispose of the Bridge
     Note or Conversion Securities; (ii) sell, transfer or otherwise dispose of,
     or agree to sell, transfer or otherwise dispose of any right to purchase
     the Bridge Note or Conversion Securities; or (iii) sell or grant, or agree
     to sell or grant, options, rights or warrants with respect to the Bridge
     Note or Conversion Securities. Such restrictions shall be effective for a
     period of time equal to the period during which the managing underwriter
     imposes such transfer restrictions on the Borrower's officers and
     directors; provided, that in no event shall the restricted period
     applicable to a Lender exceed one hundred eighty (180) days after
     effectiveness of the Borrower's registration statement filed under the Act
     with the Securities and Exchange Commission with respect to such offering.

     c. In the event the Lender desires to transfer this Bridge Note, the Lender
     shall provide the Borrower with a Form of Assignment, in the form attached
     hereto describing the manner of such transfer, and an opinion of counsel
     (reasonably acceptable to the Borrower) that the proposed transfer may be
     effected without registration or qualification under applicable securities
     laws, whereupon such Lender shall be entitled to transfer this Bridge Note
     in accordance with the notice delivered by the Lender to the Borrower. If,
     in the opinion of the counsel referred to in this Subsection, the proposed
     transfer or disposition described in the written notice given may not be
     effected without registration or qualification of this Bridge Note, the
     Borrower shall give written notice thereof to the Lender, and the Lender
     will limit its activities in respect to such proposed transfer or
     disposition as, in the opinion of such counsel, are permitted by law.

     d. The Borrower may place one or more restrictive legends on the
     certificates representing the Conversion Securities which set forth the
     restrictions contained herein, and may further place a "stop transfer"
     restriction in the Borrower's books and records with respect to the Bridge
     Note and any Conversion Securities. The restrictions set forth in this
     Bridge Note shall be binding upon any Lender, donee, assignee or transferee
     of the Bridge Note or the Conversion Securities.

5. Rights as Shareholder. Until one or more stock certificates representing the
Conversion Securities issuable upon conversion of this Bridge Note are issued
(as evidenced by the



                                       3
<PAGE>

appropriate entry on the books of the Borrower or of a duly authorized transfer
agent of the Borrower), no right to vote or receive dividends or any other
rights as a shareholder of the Borrower shall exist, notwithstanding conversion
of the Bridge Note. No such stock certificates will be issued until the Bridge
Note and all other documents and information requested by the Borrower are
delivered to the Borrower.

6. Miscellaneous Provisions.

     a. No amendment hereunder shall be effective unless in writing signed by
     the Borrower and the Lender and no waiver hereunder shall be effective
     unless in writing, signed by the party to be charged. Neither the failure
     on the part of the Lender in exercising any right or remedy, nor any single
     or partial exercise of any other right or remedy, shall operate as a
     waiver. The acceptance by the Lender of any payment hereunder which is less
     than payment in full of all amounts due and payable at the time of such
     payment shall not constitute a waiver of the right to exercise any of the
     options hereunder at that time or at any subsequent time.

     b. The Borrower hereby waives diligence, presentment, demand for payment,
     notice of dishonor, notice of non-payment, protest, notice of protest, and
     any and all other demands in connection with the delivery, acceptance,
     performance, default or enforcement of this Bridge Note.

     c. The terms and provisions hereof shall inure to the benefit of, and be
     binding upon, the respective successors and assigns of the Borrower and
     Lender. This Bridge Note shall be governed by and construed and enforced in
     accordance with the laws of the State of Minnesota without giving effect to
     such state's choice of law principles.

     d. No recourse for the payment of the principal of or any interest on this
     Bridge Note, or for any claim based hereon or otherwise in respect hereof,
     and no recourse under or upon any obligation, covenant or agreement of the
     Borrower in any Bridge Note, or because of the creation of any indebtedness
     represented thereby, shall be had against any incorporator, shareholder,
     officer or director as such, past, present or future, of the Borrower or of
     any successor corporation either directly or through the Borrower or any
     successor corporation, whether by virtue of any constitution, statute or
     rule of law or by the enforcement of any assessment or penalty or
     otherwise, all such liability being, by the acceptance hereof and as part
     of the consideration for the issue hereof, expressly waived and released.

     e. The Borrower covenants that all Conversion Securities that may be issued
     upon the conversion of this Bridge Note, if equity, will, upon payment and
     issuance, be duly authorized and issued, fully paid and nonassessable
     shares of the Borrower's capital stock.

     f. Upon receipt by the Borrower of evidence reasonably satisfactory to it
     of the loss, theft, destruction or mutilation of this Bridge Note, and in
     case of loss, theft or destruction, of indemnity or security reasonably
     satisfactory to it, and upon reimbursement to the Borrower of all
     reasonable expenses incidental thereto, and upon surrender and cancellation
     of this Bridge Note, if mutilated, the Borrower will make and deliver a new
     Bridge Note of like tenor and dates as of such cancellation, in lieu of
     this Bridge Note.



                                       4
<PAGE>

     g. This Bridge Note has been issued pursuant to and is subject to the terms
     and provisions of that certain Bridge Loan and Investment Agreement of even
     date herewith between the Borrower and the Lender, the terms and provisions
     of which are incorporated herein by reference with the same force and
     effect as if fully set forth herein. To the extent the terms of the Bridge
     Note and the Bridge Loan and Investment Agreement are inconsistent, the
     terms of this Bridge Note shall control.

     h. All notices and other communications shall be by certified mail, return
     receipt requested, or by overnight delivery service to the address
     furnished to the Borrower in writing by the last Lender of this Bridge Note
     who shall have furnished an address to the Borrower in writing. Delivery
     shall be deemed to have occurred on the date three (3) days after
     depositing the notice in the U.S. mail or one (1) day after delivery of
     such notice to a reputable overnight delivery service.

         IN WITNESS WHEREOF, the Borrower has caused this Bridge Note to be
executed by its authorized representative, who certifies that he has all
necessary authority on behalf of the Borrower to execute this Bridge Note and
bind the Borrower to the terms hereof.

                                             REDLINE PERFORMANCE
                                             PRODUCTS, INC.

                                             By: /s/ Kent Harle
                                                 Kent Harle
                                                 Its: President




                                       5
<PAGE>

                               FORM OF ASSIGNMENT

                       REDLINE PERFORMANCE PRODUCTS, INC.

         FOR VALUE RECEIVED, the undersigned registered owner of this 10%
Secured Convertible Promissory Note (the "BRIDGE NOTE") hereby sells, assigns
and transfers unto the Assignee named below all of the rights of the undersigned
under the within Bridge Note as set forth below:

<Table>
<Caption>
  NAME OF ASSIGNEE                   ADDRESS            PRINCIPAL AMOUNT OF NOTE
  ----------------                   -------            ------------------------
<S>                                 <C>                <C>

</Table>



and does hereby irrevocably constitute and appoint ________________________
Attorney to make such transfer on the books of REDLINE PERFORMANCE PRODUCTS,
INC. maintained for the purpose, with full power of substitution in the
premises. The undersigned understands that compliance with the provisions of the
Bridge Note is necessary to effect any assignment or transfer.


Dated:                      ,               Dated:                        ,
       --------------- ----- -----                 ---------------- ------ -----


-----------------------------------         ------------------------------------
Signature                                   Second Signature (if necessary)


-----------------------------------         ------------------------------------
Print Name                                  Print Name


<PAGE>

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE AND ANY SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION THEREOF MAY BE
MADE ONLY (i) IN A REGISTRATION OR QUALIFICATION OR (ii) IF AN EXEMPTION FROM
REGISTRATION OR QUALIFICATION IS AVAILABLE AND THE COMPANY HAS RECEIVED AN
OPINION OF COUNSEL TO THAT EFFECT REASONABLY SATISFACTORY TO THE COMPANY.

SALE OR OTHER TRANSFER OF THIS WARRANT OR THE SHARES OF CAPITAL STOCK ISSUABLE
UPON EXERCISE HEREOF IS FURTHER RESTRICTED FOR UP TO 180 DAYS FOLLOWING AN
INITIAL PUBLIC OFFERING OF SECURITIES OF THE BORROWER BY THE TERMS OF A LOAN AND
INVESTMENT AGREEMENT, A COPY OF WHICH IS AVAILABLE FOR INSPECTION AT THE OFFICES
OF THE COMPANY.

Void After 5:00 p.m. Vista, California time on December 12, 2008

                       REDLINE PERFORMANCE PRODUCTS, INC.

                          COMMON STOCK PURCHASE WARRANT

Bridge Warrant No. RB-9                                           Shares: 20,000

         THIS CERTIFIES that, subject to the terms and conditions herein set
forth, David G. Mell, an individual, or his registered assigns (the "HOLDER") is
entitled to purchase from REDLINE PERFORMANCE PRODUCTS, INC., a Minnesota
corporation (the "COMPANY"), at any time or from time to time prior to the time
and date set forth above, Twenty Thousand (20,000) fully paid and non-assessable
shares of common stock of the Company (the "COMMON STOCK"). Such shares of
Common Stock which may be acquired upon exercise of this Bridge Warrant are
referred to as the "SHARES").

         This Bridge Warrant is subject to the following terms and conditions:

1.       Purchase Price. Subject to adjustment as hereinafter provided, the
         purchase price of one Share shall be One and 25/100 Dollars ($1.25).
         The purchase price of one Share is referred to herein as the "BRIDGE
         WARRANT PRICE."

2.       Adjustment of Bridge Warrant Price and Number of Shares. The number and
         kind of securities issuable upon the exercise of this Bridge Warrant
         shall be subject to adjustment from time to time upon the happening of
         certain events as follows:

         a.       Adjustment for Stock Dividends, Splits and Consolidations. In
                  case the Company shall at any time subdivide the outstanding
                  Common Stock into a greater number



<PAGE>

                  of shares or declare a dividend payable in Common Stock, the
                  Bridge Warrant Price in effect immediately prior to such
                  subdivision shall proportionately reduced, and conversely, in
                  case the outstanding Common Stock shall be combined into a
                  smaller number of shares, the Bridge Warrant exercise price in
                  effect immediately prior to such combination shall be
                  proportionately increased.

         b.       Adjustment for Reorganizations or Consolidations. If any
                  capital reorganization or reclassification of the capital
                  stock of the Company, or consolidation or merger of the
                  Company with another corporation, or the sale of all or
                  substantially all of its assets to another corporation shall
                  be effected in such a way that holders of Common Stock shall
                  be entitled to receive stock, securities or assets
                  ("substituted property") with respect to or in exchange for
                  such Common Stock, then, as a condition of such
                  reorganization, reclassification, consolidation, merger or
                  sale, the Holder shall have the right to purchase and receive
                  upon the basis and upon the terms and conditions specified in
                  this Bridge Warrant and in lieu of the Common Stock of the
                  Company immediately theretofore purchasable and receivable
                  upon the exercise of the rights represented hereby, such
                  substituted property as would have been issued or delivered to
                  the Holder if it had exercised this Bridge Warrant and had
                  received upon exercise of this Bridge Warrant the Shares prior
                  to such reorganization, reclassification, consolidation,
                  merger or sale, less the amount of the Bridge Warrant Price.

3.       No Fractional Shares. No fractional Shares of Common Stock will be
         issued in connection with any exercise of this Bridge Warrant. In lieu
         of any fractional Shares which would otherwise be issuable, the Company
         shall pay cash equal to the product of such fraction multiplied by the
         fair market value of one share of Common Stock on the date of exercise
         as determined in good faith by the Company.

4.       No Stockholder Rights. This Bridge Warrant shall not entitle its Holder
         to any of the rights of a stockholder of the Company prior to exercise
         of this Bridge Warrant.

5.       Covenants of the Company. The Company covenants that during the period
         this Bridge Warrant is exercisable, the Company will reserve from its
         authorized and unissued Common Stock a sufficient number of shares of
         Common Stock to provide for the issuance of Shares upon the exercise of
         this Bridge Warrant. The Company further covenants that all Shares that
         may be issued upon the exercise of this Bridge Warrant will, upon
         payment and issuance, be duly authorized and issued, fully paid and
         nonassessable shares of Common Stock.

6.       Exercise of Bridge Warrant. This Bridge Warrant may be exercised by the
         registered Holder, in whole or in part, by the surrender of this Bridge
         Warrant at the principal office of the Company, together with the form
         of exercise hereof duly executed, accompanied by payment in full of the
         amount of the aggregate Bridge Warrant Price in: (a) cash; (b)
         cashier's check; or (c) bank draft. Upon partial exercise hereof, a new
         Bridge Warrant or Bridge Warrants containing the same date and
         provisions as this Bridge Warrant shall be issued by the Company to the
         registered Holder for the number of Shares of Common Stock with respect
         to which this Bridge Warrant shall not have been exercised. Upon each
         exercise of this Bridge Warrant the Holder shall exercise this Bridge
         Warrant and



                                       2
<PAGE>

         purchase the lesser of 100 Shares and the balance of Shares available
         for issuance under the Bridge Warrant. A Bridge Warrant shall be deemed
         to have been exercised immediately prior to the close of business on
         the date the Company is in receipt of this Bridge Warrant, written
         notice of exercise, and payment for the number of Shares being acquired
         upon exercise of this Bridge Warrant. The person entitled to receive
         the Shares issuable upon such exercise shall be treated for all
         purposes as the Holder of such Shares of record as of the close of
         business on such date. As promptly as practicable on or after such
         date, the Company shall issue and deliver to the person or persons
         entitled to receive the same a certificate or certificates for the
         number of full Shares of Common Stock issuable upon such exercise,
         together with cash in lieu of any fraction of a Share, as provided
         above.

7.       Additional Right to Convert Bridge Warrant.

         a.       The holder of this Bridge Warrant shall have the right to
                  require the Company to convert this Bridge Warrant (the
                  "CONVERSION RIGHT") at any time prior to its expiration into
                  shares of Common Stock as provided for in this Section 7. Upon
                  exercise of the Conversion Right, the Company shall deliver to
                  the holder (without payment by the holder of any Bridge
                  Warrant Price) the number of shares of Common Stock ("N")
                  determined based on the formula set forth below.

                  N = A - B
                      -----
                        C

                  For purposes of the Conversion Right, "A" is the aggregate
                  Fair Market Value for the Shares immediately prior to the
                  exercise of the Conversion Right, "B" is the aggregate
                  Exercise Price for the Shares in effect immediately prior to
                  the exercise of the Conversion Right, and "C" is the Fair
                  Market Value of one share of Common Stock immediately prior to
                  the exercise of the Conversion Right.

         b.       The Conversion Right may be exercised by the Holder, at any
                  time or from time to time, prior to its expiration, on any
                  business day by delivering a written notice in the form
                  attached hereto (the "CONVERSION NOTICE") to the Company at
                  the offices of the Company exercising the Conversion Right and
                  specifying (i) the total number of Shares the Holder will
                  purchase pursuant to such conversion and (ii) the name,
                  address and tax identification number of the entity or
                  individual in whose name the Shares are to be issued.

         c.       Upon exercise of the Conversion Right, (i) the Holder will
                  surrender the Bridge Warrant, (ii) the Company will deliver to
                  the Holder a certificate or certificates for the number of
                  Shares issuable upon such conversion, together with cash, in
                  lieu of any fraction of a share, and (iii) the Company will
                  deliver to the Holder a new Bridge Warrant representing the
                  number of shares, if any, with respect to which the Bridge
                  Warrant shall not have been exercised.

         d.       "FAIR MARKET VALUE" means, with respect to the Company's
                  Common Stock, as of any date: (i) if the Common Stock is
                  listed or admitted to unlisted trading privileges on any
                  national securities exchange or is not so listed or admitted
                  but



                                       3
<PAGE>

                  transactions in the Common Stock are reported on the Nasdaq
                  National Market, the reported closing price of the Common
                  Stock on such exchange or by the Nasdaq National Market as of
                  such date (or, if no shares were traded on such day, as of the
                  next preceding day on which there was such a trade); or (ii)
                  if the Common Stock is not so listed or admitted to unlisted
                  trading privileges or reported on the Nasdaq National Market,
                  and bid and asked prices therefor in the over-the-counter
                  market are reported by the Nasdaq system or National Quotation
                  Bureau, Inc. (or any comparable reporting system), the mean of
                  the closing bid and asked prices as of such date, as so
                  reported by the Nasdaq system, or, if not so reported thereon,
                  as reported by National Quotation Bureau, Inc. (or such
                  comparable reporting service); or (iii) if the Common Stock is
                  not so listed or admitted to unlisted trading privileges, or
                  reported on the Nasdaq National Market, and such bid and asked
                  prices are not so reported by the Nasdaq system or National
                  Quotation Bureau, Inc. (or any comparable reporting service),
                  such price as the Company's Board of Directors determines in
                  good faith in the exercise of its reasonable discretion.

8.       Compliance with Securities Laws and Other Transfer Restrictions. The
         Holder of this Bridge Warrant, by acceptance hereof, agrees, represents
         and Bridge Warrants that this Bridge Warrant and the Shares which may
         be issued upon exercise hereof are being acquired for investment, that
         the Holder has no present intention to resell or otherwise dispose of
         all or any part of this Bridge Warrant or any Shares, and that the
         Holder will not offer, sell or otherwise dispose of all or any part of
         this Bridge Warrant or any Shares except under circumstances which will
         not result in a violation of the Securities Act of 1933, as amended
         (the "ACT") or applicable state securities laws. The Company may
         condition any transfer, sale, pledge, assignment or other disposition
         on the receipt from the party to whom this Bridge Warrant is to be so
         transferred or to whom Shares are to be issued or so transferred, on
         any representations and agreements requested by the Company in order to
         permit such issuance or transfer to be made pursuant to exemptions from
         registration under federal and applicable state securities laws. Upon
         exercise of this Bridge Warrant, the Holder hereof shall, if requested
         by the Company, confirm in writing its investment purpose and
         acceptance of the restrictions on transfer of the Shares.

9.       Subdivision of Bridge Warrant. At the request of the Holder of this
         Bridge Warrant in connection with a transfer or exercise of a portion
         of the Bridge Warrant, upon surrender of such Bridge Warrant for such
         purpose to the Company, the Company at its expense (except for any
         transfer tax payable) will issue and exchange therefor Bridge Warrants
         of like tenor and date representing in the aggregate the right to
         purchase such number of Shares of such Common Stock as shall be
         designated by such Holder at the time of such surrender; provided,
         however, that the Company's obligations to subdivide securities under
         this Paragraph shall be subject to and conditioned upon the compliance
         of any such subdivision with applicable state securities laws and with
         the Act.

10.      Loss, Theft, Destruction or Mutilation of Bridge Warrant. Upon receipt
         by the Company of evidence reasonably satisfactory to it of the loss,
         theft, destruction or mutilation of this Bridge Warrant, and in case of
         loss, theft or destruction, of indemnity or security reasonably
         satisfactory to it, and upon reimbursement to the Company of all
         reasonable



                                       4
<PAGE>

         expenses incidental thereto, and upon surrender and cancellation of
         this Bridge Warrant, if mutilated, the Company will make and deliver a
         new Bridge Warrant of like tenor and dates as of such cancellation, in
         lieu of this Bridge Warrant.

11.      No Limitation on Corporate Action. No provisions of the Bridge Warrant
         and no right or option granted or conferred hereunder shall in any way
         limit, affect, or abridge the exercise by the Company of any of its
         corporate rights or powers to recapitalize, amend its Articles of
         Organization, reorganize or merge with or into another corporation, or
         to transfer all or any part of its property or assets, or the exercise
         of any other of its corporate rights and powers.

12.      Miscellaneous. This Bridge Warrant shall be governed by the laws of the
         State of Minnesota without regard to such state's conflict of laws
         provisions. The headings in this Bridge Warrant are for purposes of
         convenience and reference only, and shall not be deemed to constitute a
         part hereof. Neither this Bridge Warrant nor any term hereof may be
         changed, waived, discharged or terminated orally but only by an
         instrument in writing signed by the Company and the registered Holder
         hereof. All notices and other communications from the Company to the
         Holder of this Bridge Warrant shall be by certified mail, return
         receipt requested, or by overnight delivery service to the address
         furnished to the Company in writing by the last Holder of this Bridge
         Warrant who shall have furnished an address to the Company in writing.

ISSUED this 12th day of December, 2001

REDLINE PERFORMANCE PRODUCTS, INC.


By:  /s/ Kent Harle
     Kent Harle, President




                                       5
<PAGE>

                               FORM OF ASSIGNMENT

                       REDLINE PERFORMANCE PRODUCTS, INC.


         FOR VALUE RECEIVED, the undersigned registered owner of this Bridge
Warrant hereby sells, assigns and transfers unto the Assignee named below all of
the rights of the undersigned under the within Bridge Warrant, with respect to
the number of Shares of Common Stock set forth below.


<Table>
<Caption>
   NAME OF ASSIGNEE                  ADDRESS                     NUMBER OF SHARES
   ----------------                  -------                     ----------------
<S>                                 <C>                        <C>

</Table>




and does hereby irrevocably constitute and appoint ____________________________
Attorney to make such transfer on the books of __________________ maintained for
the purpose, with full power of substitution in the premises.


Dated:                  , 20
       ------------- ---    --


-----------------------------------
Signature


-----------------------------------
Print Name



<PAGE>

                                  EXERCISE FORM

                       REDLINE PERFORMANCE PRODUCTS, INC.

              (To be executed only upon exercise of Bridge Warrant)

         The undersigned registered owner of this Bridge Warrant irrevocably
exercises this Bridge Warrant for and purchases _____________________________ of
the number of Shares of Common Stock of __________________ purchasable with this
Bridge Warrant, and herewith makes payment therefor, all at the price and on the
terms and conditions specified in this Bridge Warrant.



Dated:                  , 20
       ------------- ---    --


---------------------------------------
Signature of Registered Owner


---------------------------------------
Street Address


---------------------------------------
City, State, Zip Code


---------------------------------------
IRS Identification Number




<PAGE>

                                CONVERSION NOTICE

                       REDLINE PERFORMANCE PRODUCTS, INC.

              (To be signed only upon exercise of conversion right)


         The undersigned, the holder of the within Bridge Warrant, hereby
irrevocably elects to exercise the Conversion Right set forth in such Bridge
Warrant and to purchase ____________ shares of the Common Stock, of Redline
Performance Products. The closing of this conversion shall take place at the
offices of the undersigned on ______________________. Certificates for the
shares to be delivered at the closing shall be issued in the name of
________________________________________________________________ whose address
is _________________________________________.


Dated:                                                 , 20  .
       ------------------------------------------------    --


--------------------------------------------------------------
(Signature must conform in all respects to the name
of holder as specified on the face of the Bridge Warrant)


--------------------------------------------------------------
(Address)


--------------------------------------------------------------
(City, State, Zip Code)






<PAGE>

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE AND ANY SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION THEREOF MAY BE
MADE ONLY (i) IN A REGISTRATION OR QUALIFICATION OR (ii) IF AN EXEMPTION FROM
REGISTRATION OR QUALIFICATION IS AVAILABLE AND THE COMPANY HAS RECEIVED AN
OPINION OF COUNSEL TO THAT EFFECT REASONABLY SATISFACTORY TO THE COMPANY.

SALE OR OTHER TRANSFER OF THIS WARRANT OR THE SHARES OF CAPITAL STOCK ISSUABLE
UPON EXERCISE HEREOF IS FURTHER RESTRICTED FOR UP TO 180 DAYS FOLLOWING AN
INITIAL PUBLIC OFFERING OF SECURITIES OF THE BORROWER BY THE TERMS OF A LOAN AND
INVESTMENT AGREEMENT, A COPY OF WHICH IS AVAILABLE FOR INSPECTION AT THE OFFICES
OF THE COMPANY.

Void After 5:00 p.m. Vista, California time on December 12, 2008

                       REDLINE PERFORMANCE PRODUCTS, INC.

                          COMMON STOCK PURCHASE WARRANT

Bridge Warrant No. RB-21                                          Shares: 20,000

         THIS CERTIFIES that, subject to the terms and conditions herein set
forth, David G. Mell, an individual, or his registered assigns (the "HOLDER") is
entitled to purchase from REDLINE PERFORMANCE PRODUCTS, INC., a Minnesota
corporation (the "COMPANY"), at any time or from time to time prior to the time
and date set forth above, Twenty Thousand (20,000) fully paid and non-assessable
shares of common stock of the Company (the "COMMON STOCK"). Such shares of
Common Stock which may be acquired upon exercise of this Bridge Warrant are
referred to as the "SHARES").

         This Bridge Warrant is subject to the following terms and conditions:

1.       Purchase Price. Subject to adjustment as hereinafter provided, the
         purchase price of one Share shall be One and 25/100 Dollars ($1.25).
         The purchase price of one Share is referred to herein as the "BRIDGE
         WARRANT PRICE."

2.       Adjustment of Bridge Warrant Price and Number of Shares. The number and
         kind of securities issuable upon the exercise of this Bridge Warrant
         shall be subject to adjustment from time to time upon the happening of
         certain events as follows:

         a.       Adjustment for Stock Dividends, Splits and Consolidations. In
                  case the Company shall at any time subdivide the outstanding
                  Common Stock into a greater number



<PAGE>

                  of shares or declare a dividend payable in Common Stock, the
                  Bridge Warrant Price in effect immediately prior to such
                  subdivision shall proportionately reduced, and conversely, in
                  case the outstanding Common Stock shall be combined into a
                  smaller number of shares, the Bridge Warrant exercise price in
                  effect immediately prior to such combination shall be
                  proportionately increased.

         b.       Adjustment for Reorganizations or Consolidations. If any
                  capital reorganization or reclassification of the capital
                  stock of the Company, or consolidation or merger of the
                  Company with another corporation, or the sale of all or
                  substantially all of its assets to another corporation shall
                  be effected in such a way that holders of Common Stock shall
                  be entitled to receive stock, securities or assets
                  ("substituted property") with respect to or in exchange for
                  such Common Stock, then, as a condition of such
                  reorganization, reclassification, consolidation, merger or
                  sale, the Holder shall have the right to purchase and receive
                  upon the basis and upon the terms and conditions specified in
                  this Bridge Warrant and in lieu of the Common Stock of the
                  Company immediately theretofore purchasable and receivable
                  upon the exercise of the rights represented hereby, such
                  substituted property as would have been issued or delivered to
                  the Holder if it had exercised this Bridge Warrant and had
                  received upon exercise of this Bridge Warrant the Shares prior
                  to such reorganization, reclassification, consolidation,
                  merger or sale, less the amount of the Bridge Warrant Price.

3.       No Fractional Shares. No fractional Shares of Common Stock will be
         issued in connection with any exercise of this Bridge Warrant. In lieu
         of any fractional Shares which would otherwise be issuable, the Company
         shall pay cash equal to the product of such fraction multiplied by the
         fair market value of one share of Common Stock on the date of exercise
         as determined in good faith by the Company.

4.       No Stockholder Rights. This Bridge Warrant shall not entitle its Holder
         to any of the rights of a stockholder of the Company prior to exercise
         of this Bridge Warrant.

5.       Covenants of the Company. The Company covenants that during the period
         this Bridge Warrant is exercisable, the Company will reserve from its
         authorized and unissued Common Stock a sufficient number of shares of
         Common Stock to provide for the issuance of Shares upon the exercise of
         this Bridge Warrant. The Company further covenants that all Shares that
         may be issued upon the exercise of this Bridge Warrant will, upon
         payment and issuance, be duly authorized and issued, fully paid and
         nonassessable shares of Common Stock.

6.       Exercise of Bridge Warrant. This Bridge Warrant may be exercised by the
         registered Holder, in whole or in part, by the surrender of this Bridge
         Warrant at the principal office of the Company, together with the form
         of exercise hereof duly executed, accompanied by payment in full of the
         amount of the aggregate Bridge Warrant Price in: (a) cash; (b)
         cashier's check; or (c) bank draft. Upon partial exercise hereof, a new
         Bridge Warrant or Bridge Warrants containing the same date and
         provisions as this Bridge Warrant shall be issued by the Company to the
         registered Holder for the number of Shares of Common Stock with respect
         to which this Bridge Warrant shall not have been exercised. Upon each
         exercise of this Bridge Warrant the Holder shall exercise this Bridge
         Warrant and



                                       2
<PAGE>

         purchase the lesser of 100 Shares and the balance of Shares available
         for issuance under the Bridge Warrant. A Bridge Warrant shall be deemed
         to have been exercised immediately prior to the close of business on
         the date the Company is in receipt of this Bridge Warrant, written
         notice of exercise, and payment for the number of Shares being acquired
         upon exercise of this Bridge Warrant. The person entitled to receive
         the Shares issuable upon such exercise shall be treated for all
         purposes as the Holder of such Shares of record as of the close of
         business on such date. As promptly as practicable on or after such
         date, the Company shall issue and deliver to the person or persons
         entitled to receive the same a certificate or certificates for the
         number of full Shares of Common Stock issuable upon such exercise,
         together with cash in lieu of any fraction of a Share, as provided
         above.

7.       Additional Right to Convert Bridge Warrant.

         a.       The holder of this Bridge Warrant shall have the right to
                  require the Company to convert this Bridge Warrant (the
                  "CONVERSION RIGHT") at any time prior to its expiration into
                  shares of Common Stock as provided for in this Section 7. Upon
                  exercise of the Conversion Right, the Company shall deliver to
                  the holder (without payment by the holder of any Bridge
                  Warrant Price) the number of shares of Common Stock ("N")
                  determined based on the formula set forth below.

                  N = A - B
                      -----
                        C

                  For purposes of the Conversion Right, "A" is the aggregate
                  Fair Market Value for the Shares immediately prior to the
                  exercise of the Conversion Right, "B" is the aggregate
                  Exercise Price for the Shares in effect immediately prior to
                  the exercise of the Conversion Right, and "C" is the Fair
                  Market Value of one share of Common Stock immediately prior to
                  the exercise of the Conversion Right.

         b.       The Conversion Right may be exercised by the Holder, at any
                  time or from time to time, prior to its expiration, on any
                  business day by delivering a written notice in the form
                  attached hereto (the "CONVERSION NOTICE") to the Company at
                  the offices of the Company exercising the Conversion Right and
                  specifying (i) the total number of Shares the Holder will
                  purchase pursuant to such conversion and (ii) the name,
                  address and tax identification number of the entity or
                  individual in whose name the Shares are to be issued.

         c.       Upon exercise of the Conversion Right, (i) the Holder will
                  surrender the Bridge Warrant, (ii) the Company will deliver to
                  the Holder a certificate or certificates for the number of
                  Shares issuable upon such conversion, together with cash, in
                  lieu of any fraction of a share, and (iii) the Company will
                  deliver to the Holder a new Bridge Warrant representing the
                  number of shares, if any, with respect to which the Bridge
                  Warrant shall not have been exercised.

         d.       "FAIR MARKET VALUE" means, with respect to the Company's
                  Common Stock, as of any date: (i) if the Common Stock is
                  listed or admitted to unlisted trading privileges on any
                  national securities exchange or is not so listed or admitted
                  but



                                       3
<PAGE>

                  transactions in the Common Stock are reported on the Nasdaq
                  National Market, the reported closing price of the Common
                  Stock on such exchange or by the Nasdaq National Market as of
                  such date (or, if no shares were traded on such day, as of the
                  next preceding day on which there was such a trade); or (ii)
                  if the Common Stock is not so listed or admitted to unlisted
                  trading privileges or reported on the Nasdaq National Market,
                  and bid and asked prices therefor in the over-the-counter
                  market are reported by the Nasdaq system or National Quotation
                  Bureau, Inc. (or any comparable reporting system), the mean of
                  the closing bid and asked prices as of such date, as so
                  reported by the Nasdaq system, or, if not so reported thereon,
                  as reported by National Quotation Bureau, Inc. (or such
                  comparable reporting service); or (iii) if the Common Stock is
                  not so listed or admitted to unlisted trading privileges, or
                  reported on the Nasdaq National Market, and such bid and asked
                  prices are not so reported by the Nasdaq system or National
                  Quotation Bureau, Inc. (or any comparable reporting service),
                  such price as the Company's Board of Directors determines in
                  good faith in the exercise of its reasonable discretion.

8.       Compliance with Securities Laws and Other Transfer Restrictions. The
         Holder of this Bridge Warrant, by acceptance hereof, agrees, represents
         and Bridge Warrants that this Bridge Warrant and the Shares which may
         be issued upon exercise hereof are being acquired for investment, that
         the Holder has no present intention to resell or otherwise dispose of
         all or any part of this Bridge Warrant or any Shares, and that the
         Holder will not offer, sell or otherwise dispose of all or any part of
         this Bridge Warrant or any Shares except under circumstances which will
         not result in a violation of the Securities Act of 1933, as amended
         (the "ACT") or applicable state securities laws. The Company may
         condition any transfer, sale, pledge, assignment or other disposition
         on the receipt from the party to whom this Bridge Warrant is to be so
         transferred or to whom Shares are to be issued or so transferred, on
         any representations and agreements requested by the Company in order to
         permit such issuance or transfer to be made pursuant to exemptions from
         registration under federal and applicable state securities laws. Upon
         exercise of this Bridge Warrant, the Holder hereof shall, if requested
         by the Company, confirm in writing its investment purpose and
         acceptance of the restrictions on transfer of the Shares.

9.       Subdivision of Bridge Warrant. At the request of the Holder of this
         Bridge Warrant in connection with a transfer or exercise of a portion
         of the Bridge Warrant, upon surrender of such Bridge Warrant for such
         purpose to the Company, the Company at its expense (except for any
         transfer tax payable) will issue and exchange therefor Bridge Warrants
         of like tenor and date representing in the aggregate the right to
         purchase such number of Shares of such Common Stock as shall be
         designated by such Holder at the time of such surrender; provided,
         however, that the Company's obligations to subdivide securities under
         this Paragraph shall be subject to and conditioned upon the compliance
         of any such subdivision with applicable state securities laws and with
         the Act.

10.      Loss, Theft, Destruction or Mutilation of Bridge Warrant. Upon receipt
         by the Company of evidence reasonably satisfactory to it of the loss,
         theft, destruction or mutilation of this Bridge Warrant, and in case of
         loss, theft or destruction, of indemnity or security reasonably
         satisfactory to it, and upon reimbursement to the Company of all
         reasonable



                                       4
<PAGE>

         expenses incidental thereto, and upon surrender and cancellation of
         this Bridge Warrant, if mutilated, the Company will make and deliver a
         new Bridge Warrant of like tenor and dates as of such cancellation, in
         lieu of this Bridge Warrant.

11.      No Limitation on Corporate Action. No provisions of the Bridge Warrant
         and no right or option granted or conferred hereunder shall in any way
         limit, affect, or abridge the exercise by the Company of any of its
         corporate rights or powers to recapitalize, amend its Articles of
         Organization, reorganize or merge with or into another corporation, or
         to transfer all or any part of its property or assets, or the exercise
         of any other of its corporate rights and powers.

12.      Miscellaneous. This Bridge Warrant shall be governed by the laws of the
         State of Minnesota without regard to such state's conflict of laws
         provisions. The headings in this Bridge Warrant are for purposes of
         convenience and reference only, and shall not be deemed to constitute a
         part hereof. Neither this Bridge Warrant nor any term hereof may be
         changed, waived, discharged or terminated orally but only by an
         instrument in writing signed by the Company and the registered Holder
         hereof. All notices and other communications from the Company to the
         Holder of this Bridge Warrant shall be by certified mail, return
         receipt requested, or by overnight delivery service to the address
         furnished to the Company in writing by the last Holder of this Bridge
         Warrant who shall have furnished an address to the Company in writing.


ISSUED this 10th day of April, 2002

REDLINE PERFORMANCE PRODUCTS, INC.


By:  /s/ Kent Harle
     Kent Harle, President




                                       5
<PAGE>

FORM OF ASSIGNMENT

                       REDLINE PERFORMANCE PRODUCTS, INC.


         FOR VALUE RECEIVED, the undersigned registered owner of this Bridge
Warrant hereby sells, assigns and transfers unto the Assignee named below all of
the rights of the undersigned under the within Bridge Warrant, with respect to
the number of Shares of Common Stock set forth below.


<Table>
<Caption>
      NAME OF ASSIGNEE                            ADDRESS                                NUMBER OF SHARES
      ----------------                            -------                                ----------------
<S>                                          <C>                                        <C>

</Table>






and does hereby irrevocably constitute and appoint ___________________________
Attorney to make such transfer on the books of __________________ maintained for
the purpose, with full power of substitution in the premises.


Dated:                  , 20
       ------------- ---    --


-----------------------------------
Signature


-----------------------------------
Print Name






                                       6
<PAGE>

                                  EXERCISE FORM

                       REDLINE PERFORMANCE PRODUCTS, INC.

              (To be executed only upon exercise of Bridge Warrant)

         The undersigned registered owner of this Bridge Warrant irrevocably
exercises this Bridge Warrant for and purchases _____________________________ of
the number of Shares of Common Stock of __________________ purchasable with this
Bridge Warrant, and herewith makes payment therefor, all at the price and on the
terms and conditions specified in this Bridge Warrant.



Dated:                  , 20
       ------------- ---    --


---------------------------------------
Signature of Registered Owner


---------------------------------------
Street Address


---------------------------------------
City, State, Zip Code


---------------------------------------
IRS Identification Number




                                       7
<PAGE>

                                CONVERSION NOTICE

                       REDLINE PERFORMANCE PRODUCTS, INC.

              (To be signed only upon exercise of conversion right)


         The undersigned, the holder of the within Bridge Warrant, hereby
irrevocably elects to exercise the Conversion Right set forth in such Bridge
Warrant and to purchase ____________ shares of the Common Stock, of Redline
Performance Products. The closing of this conversion shall take place at the
offices of the undersigned on ______________________. Certificates for the
shares to be delivered at the closing shall be issued in the name of
________________________________________________________________ whose address
is _________________________________________.


Dated:                                                 , 20  .
       ------------------------------------------------    --


--------------------------------------------------------------
(Signature must conform in all respects to the name
of holder as specified on the face of the Bridge Warrant)


--------------------------------------------------------------
(Address)


--------------------------------------------------------------
(City, State, Zip Code)




                                       8
<PAGE>

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE AND ANY SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION THEREOF MAY BE
MADE ONLY (i) IN A REGISTRATION OR QUALIFICATION OR (ii) IF AN EXEMPTION FROM
REGISTRATION OR QUALIFICATION IS AVAILABLE AND THE COMPANY HAS RECEIVED AN
OPINION OF COUNSEL TO THAT EFFECT REASONABLY SATISFACTORY TO THE COMPANY.

SALE OR OTHER TRANSFER OF THIS WARRANT OR THE SHARES OF CAPITAL STOCK ISSUABLE
UPON EXERCISE HEREOF IS FURTHER RESTRICTED FOR UP TO 180 DAYS FOLLOWING AN
INITIAL PUBLIC OFFERING OF SECURITIES OF THE BORROWER BY THE TERMS OF A LOAN AND
INVESTMENT AGREEMENT, A COPY OF WHICH IS AVAILABLE FOR INSPECTION AT THE OFFICES
OF THE COMPANY.

Void After 5:00 p.m. Vista, California time on December 18, 2009

                       REDLINE PERFORMANCE PRODUCTS, INC.

                          COMMON STOCK PURCHASE WARRANT

Bridge Warrant No. RB-32                                           Shares: 8,000

         THIS CERTIFIES that, subject to the terms and conditions herein set
forth, David G. Mell, an individual, or his registered assigns (the "HOLDER") is
entitled to purchase from REDLINE PERFORMANCE PRODUCTS, INC., a Minnesota
corporation (the "COMPANY"), at any time or from time to time prior to the time
and date set forth above, Eight Thousand (8,000) fully paid and non-assessable
shares of common stock of the Company (the "COMMON STOCK"). Such shares of
Common Stock which may be acquired upon exercise of this Bridge Warrant are
referred to as the "SHARES").

         This Bridge Warrant is subject to the following terms and conditions:

1.       Purchase Price. Subject to adjustment as hereinafter provided, the
         purchase price of one Share shall be Three and 75/100 Dollars ($3.75).
         The purchase price of one Share is referred to herein as the "BRIDGE
         WARRANT PRICE."

2.       Adjustment of Bridge Warrant Price and Number of Shares. The number and
         kind of securities issuable upon the exercise of this Bridge Warrant
         shall be subject to adjustment from time to time upon the happening of
         certain events as follows:

         a.       Adjustment for Stock Dividends, Splits and Consolidations. In
                  case the Company shall at any time subdivide the outstanding
                  Common Stock into a greater number



                                       1
<PAGE>

                  of shares or declare a dividend payable in Common Stock, the
                  Bridge Warrant Price in effect immediately prior to such
                  subdivision shall proportionately reduced, and conversely, in
                  case the outstanding Common Stock shall be combined into a
                  smaller number of shares, the Bridge Warrant exercise price in
                  effect immediately prior to such combination shall be
                  proportionately increased.

         b.       Adjustment for Reorganizations or Consolidations. If any
                  capital reorganization or reclassification of the capital
                  stock of the Company, or consolidation or merger of the
                  Company with another corporation, or the sale of all or
                  substantially all of its assets to another corporation shall
                  be effected in such a way that holders of Common Stock shall
                  be entitled to receive stock, securities or assets
                  ("substituted property") with respect to or in exchange for
                  such Common Stock, then, as a condition of such
                  reorganization, reclassification, consolidation, merger or
                  sale, the Holder shall have the right to purchase and receive
                  upon the basis and upon the terms and conditions specified in
                  this Bridge Warrant and in lieu of the Common Stock of the
                  Company immediately theretofore purchasable and receivable
                  upon the exercise of the rights represented hereby, such
                  substituted property as would have been issued or delivered to
                  the Holder if it had exercised this Bridge Warrant and had
                  received upon exercise of this Bridge Warrant the Shares prior
                  to such reorganization, reclassification, consolidation,
                  merger or sale, less the amount of the Bridge Warrant Price.

3.       No Fractional Shares. No fractional Shares of Common Stock will be
         issued in connection with any exercise of this Bridge Warrant. In lieu
         of any fractional Shares which would otherwise be issuable, the Company
         shall pay cash equal to the product of such fraction multiplied by the
         fair market value of one share of Common Stock on the date of exercise
         as determined in good faith by the Company.

4.       No Stockholder Rights. This Bridge Warrant shall not entitle its Holder
         to any of the rights of a stockholder of the Company prior to exercise
         of this Bridge Warrant.

5.       Covenants of the Company. The Company covenants that during the period
         this Bridge Warrant is exercisable, the Company will reserve from its
         authorized and unissued Common Stock a sufficient number of shares of
         Common Stock to provide for the issuance of Shares upon the exercise of
         this Bridge Warrant. The Company further covenants that all Shares that
         may be issued upon the exercise of this Bridge Warrant will, upon
         payment and issuance, be duly authorized and issued, fully paid and
         nonassessable shares of Common Stock.

6.       Exercise of Bridge Warrant. This Bridge Warrant may be exercised by the
         registered Holder, in whole or in part, by the surrender of this Bridge
         Warrant at the principal office of the Company, together with the form
         of exercise hereof duly executed, accompanied by payment in full of the
         amount of the aggregate Bridge Warrant Price in: (a) cash; (b)
         cashier's check; or (c) bank draft. Upon partial exercise hereof, a new
         Bridge Warrant or Bridge Warrants containing the same date and
         provisions as this Bridge Warrant shall be issued by the Company to the
         registered Holder for the number of Shares of Common Stock with respect
         to which this Bridge Warrant shall not have been exercised. Upon each
         exercise of this Bridge Warrant the Holder shall exercise this Bridge
         Warrant and



                                       2
<PAGE>

         purchase the lesser of 100 Shares and the balance of Shares available
         for issuance under the Bridge Warrant. A Bridge Warrant shall be deemed
         to have been exercised immediately prior to the close of business on
         the date the Company is in receipt of this Bridge Warrant, written
         notice of exercise, and payment for the number of Shares being acquired
         upon exercise of this Bridge Warrant. The person entitled to receive
         the Shares issuable upon such exercise shall be treated for all
         purposes as the Holder of such Shares of record as of the close of
         business on such date. As promptly as practicable on or after such
         date, the Company shall issue and deliver to the person or persons
         entitled to receive the same a certificate or certificates for the
         number of full Shares of Common Stock issuable upon such exercise,
         together with cash in lieu of any fraction of a Share, as provided
         above.

7.       Additional Right to Convert Bridge Warrant.

         a.       The holder of this Bridge Warrant shall have the right to
                  require the Company to convert this Bridge Warrant (the
                  "CONVERSION RIGHT") at any time prior to its expiration into
                  shares of Common Stock as provided for in this Section 7. Upon
                  exercise of the Conversion Right, the Company shall deliver to
                  the holder (without payment by the holder of any Bridge
                  Warrant Price) the number of shares of Common Stock ("N")
                  determined based on the formula set forth below.

                  N = A - B
                      -----
                        C

                  For purposes of the Conversion Right, "A" is the aggregate
                  Fair Market Value for the Shares immediately prior to the
                  exercise of the Conversion Right, "B" is the aggregate
                  Exercise Price for the Shares in effect immediately prior to
                  the exercise of the Conversion Right, and "C" is the Fair
                  Market Value of one share of Common Stock immediately prior to
                  the exercise of the Conversion Right.

         b.       The Conversion Right may be exercised by the Holder, at any
                  time or from time to time, prior to its expiration, on any
                  business day by delivering a written notice in the form
                  attached hereto (the "CONVERSION NOTICE") to the Company at
                  the offices of the Company exercising the Conversion Right and
                  specifying (i) the total number of Shares the Holder will
                  purchase pursuant to such conversion and (ii) the name,
                  address and tax identification number of the entity or
                  individual in whose name the Shares are to be issued.

         c.       Upon exercise of the Conversion Right, (i) the Holder will
                  surrender the Bridge Warrant, (ii) the Company will deliver to
                  the Holder a certificate or certificates for the number of
                  Shares issuable upon such conversion, together with cash, in
                  lieu of any fraction of a share, and (iii) the Company will
                  deliver to the Holder a new Bridge Warrant representing the
                  number of shares, if any, with respect to which the Bridge
                  Warrant shall not have been exercised.

         d.       "FAIR MARKET VALUE" means, with respect to the Company's
                  Common Stock, as of any date: (i) if the Common Stock is
                  listed or admitted to unlisted trading privileges on any
                  national securities exchange or is not so listed or admitted
                  but



                                       3
<PAGE>

                  transactions in the Common Stock are reported on the Nasdaq
                  National Market, the reported closing price of the Common
                  Stock on such exchange or by the Nasdaq National Market as of
                  such date (or, if no shares were traded on such day, as of the
                  next preceding day on which there was such a trade); or (ii)
                  if the Common Stock is not so listed or admitted to unlisted
                  trading privileges or reported on the Nasdaq National Market,
                  and bid and asked prices therefor in the over-the-counter
                  market are reported by the Nasdaq system or National Quotation
                  Bureau, Inc. (or any comparable reporting system), the mean of
                  the closing bid and asked prices as of such date, as so
                  reported by the Nasdaq system, or, if not so reported thereon,
                  as reported by National Quotation Bureau, Inc. (or such
                  comparable reporting service); or (iii) if the Common Stock is
                  not so listed or admitted to unlisted trading privileges, or
                  reported on the Nasdaq National Market, and such bid and asked
                  prices are not so reported by the Nasdaq system or National
                  Quotation Bureau, Inc. (or any comparable reporting service),
                  such price as the Company's Board of Directors determines in
                  good faith in the exercise of its reasonable discretion.

8.       Compliance with Securities Laws and Other Transfer Restrictions. The
         Holder of this Bridge Warrant, by acceptance hereof, agrees, represents
         and Bridge Warrants that this Bridge Warrant and the Shares which may
         be issued upon exercise hereof are being acquired for investment, that
         the Holder has no present intention to resell or otherwise dispose of
         all or any part of this Bridge Warrant or any Shares, and that the
         Holder will not offer, sell or otherwise dispose of all or any part of
         this Bridge Warrant or any Shares except under circumstances which will
         not result in a violation of the Securities Act of 1933, as amended
         (the "ACT") or applicable state securities laws. The Company may
         condition any transfer, sale, pledge, assignment or other disposition
         on the receipt from the party to whom this Bridge Warrant is to be so
         transferred or to whom Shares are to be issued or so transferred, on
         any representations and agreements requested by the Company in order to
         permit such issuance or transfer to be made pursuant to exemptions from
         registration under federal and applicable state securities laws. Upon
         exercise of this Bridge Warrant, the Holder hereof shall, if requested
         by the Company, confirm in writing its investment purpose and
         acceptance of the restrictions on transfer of the Shares.

9.       Subdivision of Bridge Warrant. At the request of the Holder of this
         Bridge Warrant in connection with a transfer or exercise of a portion
         of the Bridge Warrant, upon surrender of such Bridge Warrant for such
         purpose to the Company, the Company at its expense (except for any
         transfer tax payable) will issue and exchange therefor Bridge Warrants
         of like tenor and date representing in the aggregate the right to
         purchase such number of Shares of such Common Stock as shall be
         designated by such Holder at the time of such surrender; provided,
         however, that the Company's obligations to subdivide securities under
         this Paragraph shall be subject to and conditioned upon the compliance
         of any such subdivision with applicable state securities laws and with
         the Act.

10.      Loss, Theft, Destruction or Mutilation of Bridge Warrant. Upon receipt
         by the Company of evidence reasonably satisfactory to it of the loss,
         theft, destruction or mutilation of this Bridge Warrant, and in case of
         loss, theft or destruction, of indemnity or security reasonably
         satisfactory to it, and upon reimbursement to the Company of all
         reasonable



                                       4
<PAGE>

         expenses incidental thereto, and upon surrender and cancellation of
         this Bridge Warrant, if mutilated, the Company will make and deliver a
         new Bridge Warrant of like tenor and dates as of such cancellation, in
         lieu of this Bridge Warrant.

11.      No Limitation on Corporate Action. No provisions of the Bridge Warrant
         and no right or option granted or conferred hereunder shall in any way
         limit, affect, or abridge the exercise by the Company of any of its
         corporate rights or powers to recapitalize, amend its Articles of
         Organization, reorganize or merge with or into another corporation, or
         to transfer all or any part of its property or assets, or the exercise
         of any other of its corporate rights and powers.

12.      Miscellaneous. This Bridge Warrant shall be governed by the laws of the
         State of Minnesota without regard to such state's conflict of laws
         provisions. The headings in this Bridge Warrant are for purposes of
         convenience and reference only, and shall not be deemed to constitute a
         part hereof. Neither this Bridge Warrant nor any term hereof may be
         changed, waived, discharged or terminated orally but only by an
         instrument in writing signed by the Company and the registered Holder
         hereof. All notices and other communications from the Company to the
         Holder of this Bridge Warrant shall be by certified mail, return
         receipt requested, or by overnight delivery service to the address
         furnished to the Company in writing by the last Holder of this Bridge
         Warrant who shall have furnished an address to the Company in writing.


ISSUED this 18th day of December, 2002

REDLINE PERFORMANCE PRODUCTS, INC.


By:  /s/ Kent Harle
     Kent Harle, CEO




                                       5
<PAGE>

                               FORM OF ASSIGNMENT

                       REDLINE PERFORMANCE PRODUCTS, INC.


         FOR VALUE RECEIVED, the undersigned registered owner of this Bridge
Warrant hereby sells, assigns and transfers unto the Assignee named below all of
the rights of the undersigned under the within Bridge Warrant, with respect to
the number of Shares of Common Stock set forth below.


<Table>
<Caption>
      NAME OF ASSIGNEE                            ADDRESS                                NUMBER OF SHARES
      ----------------                            -------                                ----------------
<S>                                          <C>                                      <C>

</Table>






and does hereby irrevocably constitute and appoint ____________________________
Attorney to make such transfer on the books of __________________ maintained for
the purpose, with full power of substitution in the premises.


Dated:                       , 20
       ----------------- ----    --


-----------------------------------
Signature


-----------------------------------
Print Name








                                       6
<PAGE>

                                  EXERCISE FORM

                       REDLINE PERFORMANCE PRODUCTS, INC.

              (To be executed only upon exercise of Bridge Warrant)

         The undersigned registered owner of this Bridge Warrant irrevocably
exercises this Bridge Warrant for and purchases _____________________________ of
the number of Shares of Common Stock of __________________ purchasable with this
Bridge Warrant, and herewith makes payment therefor, all at the price and on the
terms and conditions specified in this Bridge Warrant.


Dated:                       , 20
       ----------------- ----    --


---------------------------------------
Signature of Registered Owner


---------------------------------------
Street Address


---------------------------------------
City, State, Zip Code


---------------------------------------
IRS Identification Number




                                       7
<PAGE>

                                CONVERSION NOTICE

                       REDLINE PERFORMANCE PRODUCTS, INC.

              (To be signed only upon exercise of conversion right)


         The undersigned, the holder of the within Bridge Warrant, hereby
irrevocably elects to exercise the Conversion Right set forth in such Bridge
Warrant and to purchase ____________ shares of the Common Stock, of Redline
Performance Products. The closing of this conversion shall take place at the
offices of the undersigned on ______________________. Certificates for the
shares to be delivered at the closing shall be issued in the name of
________________________________________________________________ whose address
is _________________________________________.


Dated:                                                , 20  .
       -----------------------------------------------    --


--------------------------------------------------------------
(Signature must conform in all respects to the name
of holder as specified on the face of the Bridge Warrant)


--------------------------------------------------------------
(Address)


--------------------------------------------------------------
(City, State, Zip Code)




                                       8
<PAGE>

                           AGREEMENT TO DEFER PAYMENTS
                         UNDER PROMISSORY NOTE ISSUED BY
                       REDLINE PERFORMANCE PRODUCTS, INC.

                                December 18, 2002


         Redline Performance Products, Inc. (the "Borrower") previously issued a
Secured Convertible Subordinated Promissory Note (the "Note") dated November 21,
2001 to the undersigned lender(s) (the "Lender"), in the principal sum of
Twenty-Five Thousand and 00/100 Dollars ($25,000.00), together with interest on
the unpaid principal balance outstanding from time to time at the rate of
fifteen percent (15%) per annum. Pursuant to that Note, the Borrower promised to
pay the Lender all of the outstanding principal and accrued interest on the Note
on or before December 31, 2002.

         For value received, the Lender hereby defers any and all payments of
principal and interest due pursuant to the Note until the earlier of (i) the
date five (5) business days after the Borrower closes an IPO, as defined below,
and (ii) the close of business on June 30, 2003 (each a "Deferral Date").

         The Note provides the Lender the right to convert amounts due pursuant
to the Note into other securities of the Borrower. The Lender understands that
the Borrower intends to file a registration statement with the Securities and
Exchange Commission in December 2002 or January 2003 to facilitate the
Borrower's initial public offering of common stock ("IPO"). Any such filing will
restrict the Borrower's ability to facilitate the conversion of amounts owed
under the Note until closing of an IPO. For value received, the Lender hereby
waives the Lender's right to convert amounts owed under the Note during the
period beginning on the date the Borrower files a registration statement with
the Securities and Exchange Commission in connection with an IPO and ending upon
closing of an IPO. Lender understands and agrees that Lender's right to convert
amounts due pursuant to the Note shall be limited to the following: (i) prior to
Borrower filing a registration statement in connection with an IPO (expected to
be on or about December 27, 2002) Lender may convert at a per share price equal
to $3.75 and (ii) after closing of the IPO and for a period of not less than
five business days thereafter, Lender may convert at a per share price equal to
the price of shares sold in the IPO. The Borrower may pay all amounts due under
the Note at any time other than the five-day period referenced herein and
intends to pay such amounts after closing of the IPO. This paragraph shall be of
no force and effect if the Borrower does not make a filing in connection with an
IPO.

         In exchange for the deferral and modification to conversion rights set
forth herein, the Borrower will issue to the Lender an additional warrant to
purchase 10,000 shares of common stock for every $50,000 in principal amount of
the Note. The Lender hereby waives any prior default by Borrower under the Note.
Except as expressly set forth herein, all of the terms and conditions of the
Note shall remain unchanged and shall continue in full force and effect.

         IN WITNESS WHEREOF, the Lender has executed this agreement to defer
payments under the Note effective as of the day and year first above written.

If An Individual:                            If an Entity:

David G. Mell                                -----------------------------------
Print Name                                   Print Entity Name

/s/ David G. Mell                            By:
                                                --------------------------------
Signature                                    Its:
                                                 -------------------------------


                                       9
<PAGE>

                               SECURITY AGREEMENT


         This SECURITY AGREEMENT (the "AGREEMENT"), dated September 26, 2001, is
entered into by and among REDLINE PERFORMANCE PRODUCTS, INC., a Minnesota
corporation ("DEBTOR") and each of the undersigned (individually referred to
herein as a "LENDER" and collectively referred to herein as the "LENDERS").

                                    RECITALS

         Debtor has borrowed funds from each of the Lenders pursuant to certain
Secured Convertible Promissory Notes in aggregate principal dollar amount of not
less than $500,000 (the "BRIDGE NOTES") and/or other debt securities issued by
the Debt in an aggregate dollar amount not to exceed $6 million ("FUTURE DEBT
SECURITIES"). Debtor is the owner of certain intellectual property and tooling
equipment identified below, in which Debtor is granting a security interest to
the Lenders.

                                    AGREEMENT

         NOW THEREFORE, in consideration of the mutual promises, covenants,
conditions, representations, and warranties hereinafter set forth and for other
good and valuable consideration, the parties hereto mutually agree as follows:

         1. Definitions. The following terms, as used in this Agreement, have
the following meanings:

                  1.1 "AGENT" means the Lender who at the time of an Event of
Default has the largest dollar amount of Principal Exposure.

                  1.2 "CODE" means the Minnesota Uniform Commercial Code, as
amended and supplemented from time to time, and any successor statute.

                  1.3 "COLLATERAL" means:

                           (a) Each of the trademarks and rights and interest
         which are capable of being protected as trademarks (including
         trademarks, service marks, designs, logos, indicia, tradenames,
         corporate names, company names, business names, fictitious business
         names, trade styles, and other source or business identifiers, and
         applications pertaining thereto), which are presently, or in the future
         may be, owned, created, acquired, or used (whether pursuant to a
         license or otherwise) by Debtor, in whole or in part, and all trademark
         rights with respect thereto throughout the world, including all
         proceeds thereof (including license royalties and proceeds of
         infringement suits), and rights to renew and extend such trademarks and
         trademark rights;



<PAGE>

                           (b) Each of the patents and patent applications which
         are presently, or in the future may be, owned, issued, acquired, or
         used (whether pursuant to a license or otherwise) by Debtor, in whole
         or in part, and all patent rights with respect thereto throughout the
         world, including all proceeds thereof (including license royalties and
         proceeds of infringement suits), foreign filing rights, and rights to
         extend such patents and patent rights;

                           (c) All of Debtor's right, title and interest, in and
         to the trademarks and trademark registrations listed on EXHIBIT A,
         attached hereto and incorporated herein by reference, as the same may
         be updated hereafter from time to time;

                           (d) All of Debtor's right, title, and interest, in
         and to the patents and patent applications listed on EXHIBIT B,
         attached hereto and incorporated herein by reference, as the same may
         be updated hereafter from time to time;

                           (e) All of Debtor's right, title and interest to
         register trademark claims under any state or federal trademark law or
         regulation of any foreign country and to apply for, renew, and extend
         the trademark registrations and trademark rights, the right (without
         obligation) to sue or bring opposition or cancellation proceedings in
         the name of Debtor or in the name of Agent for past, present, and
         future infringements of the trademarks, registrations, or trademark
         rights and all rights (but not obligations) corresponding thereto in
         the United States and any foreign country, and the associated goodwill;

                           (f) All of Debtor's right, title, and interest in all
         patentable inventions, and to file applications for patent under
         federal patent law or regulation of any foreign country, and to request
         reexamination and/or reissue of the patents, the right (without
         obligation) to sue or bring interference proceedings in the name of
         Debtor or in the name of Agent for past, present, and future
         infringements of the patents, and all rights (but not obligations)
         corresponding thereto in the United States and any foreign country;

                           (g) All of Debtor's right, title and interest in and
         to any existing and future copyrights of Debtor;

                           (h) All general intangibles relating to the
         foregoing;

                           (i) Debtor's tooling equipment listed on EXHIBIT C,
         attached hereto and incorporated herein by reference: and

                           (j) All proceeds of any and all of the foregoing
         (including, without limitation, license royalties and proceeds of
         infringement suits) and, to the extent not otherwise included, all
         payments under insurance, or any indemnity, warranty, or guaranty
         payable by reason of loss or damage to or otherwise with respect to the
         Collateral.

                  1.4 "OBLIGATIONS" means the Debtor's obligations to make
payment of all amounts outstanding under the Bridge Notes.



                                       2
<PAGE>

                  1.5 "PRO-RATA SHARE" means with respect to any Lender at any
time, a fraction (expressed as a percentage), the numerator of which is the
amount of such Lender's Principal Exposure at such time, and the denominator of
which is the aggregate amount of the Principal Exposure of all of the Lenders at
such time.

                  1.6 "PRINCIPAL EXPOSURE" means with respect to any Lender at
the time of an Event of Default, the amount of outstanding principal and accrued
interest under such Lender's Bridge Note at such time.

         2. Grant of Security Interest. Debtor hereby grants to Lenders, a
subordinated security interest in all of Debtor's right, title, and interest in
and to the Collateral to secure the Obligations.

         3. Representations, Warranties and Covenants. Debtor hereby represents,
warrants, and covenants that:

                  3.1 Trademarks; Service Marks; Patents.

                           (a) A true and complete schedule setting forth all
         federal and state trademark and service mark registrations owned or
         controlled by Debtor or licensed to Debtor, together with a summary
         description and full information in respect of the filing or issuance
         thereof and expiration dates is set forth on Exhibit A;

                           (b) A true and complete schedule setting forth all
         patent and patent applications owned or controlled by Debtor or
         licensed to Debtor, together with a summary description and full
         information in respect of the filing or issuance thereof and expiration
         dates is set forth on Exhibit B;

                  3.2 Validity; Enforceability. To the knowledge of Debtor, each
of the patents, service marks and trademarks is valid and enforceable, and
Debtor is not presently aware of any past, present, or prospective claim by any
third party that any of the patents, service marks or trademarks are invalid or
unenforceable, or that the use of any patents, service marks or trademarks
violates the rights of any third person, or of any basis for any such claims;
and

                  3.3 Title. Except to the extent similar service marks and
trademarks may be used by third parties in connection with goods and/or services
distinguishable from those provided by Debtor, Debtor is the sole and exclusive
owner of the entire and unencumbered right, title, and interest in and to each
of the patents, patent applications, service marks, service mark registrations,
trademarks, and trademark registrations, free and clear of any liens, charges,
and encumbrances, including pledges, assignments, licenses, shop rights, and
covenants by Debtor not to sue third persons. Debtor represents and warrants
that there are no existing security interests in the Debtor's patents, patent
applications, service marks, service mark registrations, trademarks, and
trademark registrations.

         4. After-Acquired Patent, Copyrights, Service Mark or Trademark Rights.
If Debtor shall obtain rights to any new copyrights, service marks, trademarks,
any new patentable inventions or become entitled to the benefit of any patent
application or patent for any reissue,



                                       3
<PAGE>

division, or continuation, of any patent, the provisions of this Agreement shall
automatically apply thereto. Debtor shall give prompt notice in writing to each
Lender with respect to any such new service marks, trademarks or patents, or
renewal or extension of any service mark or trademark registration. Debtor shall
bear any expenses incurred in connection with future patent applications or
service mark or trademark registrations.

         5. Events Of Default. Any of the following events shall be an Event of
Default:

                  5.1 Bridge Notes. Debtor's failure to pay all amounts
outstanding under the Bridge Notes on or before the Maturity Date (as defined in
the Bridge Notes).

                  5.2 Breach. Debtor fails to observe or perform any covenant,
condition, or agreement to be observed or performed pursuant to the terms hereof
which materially and adversely affects any Lender.

         6. Appointment of Agent. Upon an Event of Default, each of the Lenders
hereby designates and appoints the Agent, and each of the Lenders hereby
irrevocably authorizes the Agent to take such action on their behalf under the
provisions of this Agreement and to exercise such powers as are set forth herein
or therein, together with such other powers as are incidental thereto. The Agent
agrees to act as such on the express terms and conditions contained in this
Agreement. Notwithstanding the use of the defined term "Agent," it is expressly
understood and agreed that the Agent shall not have any fiduciary
responsibilities to any Lender by reason of this Agreement and that the Agent is
merely acting as the representative of the Lenders with only those duties as are
expressly set forth in this Agreement. In its capacity as the Lenders'
contractual representative, the Agent: (i) does not assume any fiduciary duties
to any of the Lenders; and (ii) is acting as an independent contractor, the
rights and duties of which are limited to those expressly set forth in this
Agreement. Each of the Lenders agrees to assert no claim against the Agent on
any agency theory or any other theory of liability for breach of fiduciary duty,
all of which claims each Lender waives.

         7. Specific Remedies. Upon the occurrence of any Event of Default,
Agent shall have, in addition to, other rights given by law or in this Agreement
or the Bridge Notes, all of the rights and remedies with respect to the
Collateral of a secured party under the Code.

         8. Powers and Duties. The Agent shall have and may exercise such powers
under this Agreement as are specifically delegated to the Agent by the terms
hereof, together with such powers as are reasonably incidental thereto. The
Agent shall have no implied duties to the Lenders, or any obligation to the
Lenders to take any action hereunder, except any action specifically required by
this Agreement or by the written agreement of the remainder of the Lenders. The
Agent shall not take any action which is in conflict with any provisions of
applicable law or of this Agreement or any instructions signed by the remainder
of the Lenders and agreed to by the Agent.

         9. Authorization to execute Documents. Upon notice from the remaining
Lenders, the Agent shall be authorized to and shall execute and deliver such
documents or agreements and shall deliver to the Debtor or shall accept delivery
from the Debtor of such documents or



                                       4
<PAGE>

agreements as are reasonably necessary to carry out the terms of this Agreement
after an Event of Default.

         10. Direction. The Agent shall take only such action with respect to
the Collateral directed in writing by the remaining Lenders and agreed to by the
Agent. Notwithstanding the foregoing, the Agent shall not be obligated to take
any such action: (i) which is in conflict with any provisions of applicable law
or of this Agreement; or (ii) with respect to which the Agent, in its opinion,
shall not have been provided adequate security and indemnity against the costs,
expenses and liabilities that may be incurred by it as a result of compliance
with such direction. Under no circumstances shall the Agent be liable for
following the written direction of the remainder of the Lenders.

         11. The Collateral Account. Upon an Event of Default, the Agent shall
establish and maintain at its principal office an interest-bearing account that
shall be entitled the "Redline Collateral Account." All moneys received by the
Agent with respect to Collateral after an Event of Default shall be deposited in
the Account and thereafter shall be held, applied and/or disbursed by the Agent
in accordance with Section 12 hereof. In no event shall moneys other than
proceeds of Collateral (and interest thereon) be deposited in the Collateral
Account. The Collateral Account at all times shall be subject to the exclusive
dominion and control of the Agent.

         12. Application of Moneys. All moneys held by the Agent in the
Collateral Account shall be distributed by the Agent at such times as are agreed
to by the remaining Lenders and the Agent as follows:

                           FIRST: To the Agent in an amount equal to the
                  reasonable expenses of the Agent in performing its duties
                  hereunder and that are unpaid as of such date, and to any
                  Lender that has theretofore advanced or paid any such expenses
                  in an amount equal to the amount thereof so advanced or paid
                  by such Lender prior to such date;

                           SECOND: To the Lenders and the Agent in an amount
                  equal to the total amount of the Obligations owed to each
                  Lender and the Agent. In the event the moneys are not equal to
                  or more than the amount of the Obligations owed to each Lender
                  and the Agent, then to the Lenders and the Agent in an amount
                  equal to the Agent's and each remaining Lender's Pro-Rata
                  Share; and

                           THIRD: Any surplus remaining after payment in full in
                  cash of all the Agent's expenses and all of the Obligations
                  shall be paid to the Debtor, or to whomever may be lawfully
                  entitled to receive the same, or as a court of competent
                  jurisdiction may direct.

                  Notwithstanding the foregoing, except for any surplus under
clause THIRD above, the Agent shall not be required (unless agreed to by the
remaining Lenders and the Agent) to make a distribution if the balance in the
Collateral Account available for distribution is less than $1,000. The Agent
shall not be responsible for any Lender's application (or order of application)



                                       5
<PAGE>

of payments received by such Lender from the Agent hereunder to the Obligations
owing to such Lender.

         13. Information from Lenders. Each of the Lenders hereby agrees,
promptly upon request by the Agent, to provide to the Agent in writing such
information regarding the Obligations held by such Lender as may be reasonably
required by the Agent at any time to determine such Lender's Pro Rata Share or
to calculate distributions to such Lender from the Collateral Account. Each
Lender shall notify the Agent in writing promptly following the repayment in
full of all Obligations owing to such Lender.

         14. Limitation on Agent's Duties in Respect of Collateral. Other than
the Agent's duties set forth in this Agreement as to the custody of Collateral
and the proceeds thereof received by the Agent hereunder and thereunder and the
accounting to the Debtor and the Lenders therefore, the Agent shall have no duty
to the Debtor or the remaining Lenders with respect to any Collateral in its
possession or control or in the possession or control of its agent or nominee,
any income thereon, or the preservation of rights against prior parties or any
other rights pertaining thereto.

         15. Agent's Reimbursement and Indemnification. The Lenders agree to
reimburse and indemnify the Agent ratably in proportion to their respective Pro
Rata Shares as of the date of any demand by the Agent with respect thereto: (i)
for any reasonable expenses incurred by the Agent, on behalf of the remaining
Lenders, in connection with the preservation or protection of the Collateral or
the validity, perfection or priority of the enforcement of this Agreement
against the Debtor; and (ii) for any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind and nature whatsoever which may be imposed on, incurred by or asserted
against the Agent in any way relating to or arising out of this Agreement.

         16. Rights as a Lender. Notwithstanding that the Agent is acting as the
Agent hereunder, the Agent in its individual capacity shall have the same rights
and powers hereunder as any Lender and may exercise the same as though it were
not the Agent.

         17. Successor Agent. The Agent may resign at any time by giving not
less than thirty days' prior written notice thereof to the remaining Lenders and
the Debtor and the Agent may be removed at any time with or without cause by
written notice received by the Agent from the remaining Lenders. Upon any such
resignation or removal, the remaining Lenders shall have the right to appoint,
on behalf of the Lenders, a successor Agent. If no successor Agent shall have
been so appointed by the Lenders and shall have accepted such appointment within
thirty days after the retiring Agent's giving notice of resignation, then the
retiring Agent may appoint, on behalf of the Lenders, a successor Agent. Upon
the acceptance of any appointment as the Agent hereunder by a successor Agent,
such successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent, and the retiring
Agent shall be discharged from its duties and obligations hereunder. After any
retiring Agent's resignation hereunder as Agent, the provisions of this
Agreement shall continue in effect for its benefit in respect of any actions
taken or omitted to be taken by it while it was acting as the Agent hereunder.



                                       6
<PAGE>

         18. Choice of Law and Venue. The validity of this Agreement, its
construction, interpretation, and enforcement, and the rights of the parties
hereto with respect to all matters arising hereunder or related hereto shall be
determined under, governed by, and construed in accordance with the laws of the
state of Minnesota, without giving effect to its conflict of laws principles.
The parties agree that all actions or proceedings arising in connection with
this agreement shall be tried and litigated only in the state and federal courts
located in Hennepin County, Minnesota.

         19. General Provisions.

                  19.1 Effectiveness. With respect to each Lender, this
Agreement shall be binding and deemed effective when executed by such Lender.

                  19.2 Successors and Assigns. This Agreement shall bind and
inure to the benefit of the respective successors and assigns of each of the
parties; provided, however, that neither Debtor nor any of the Lenders may
assign this Agreement or any rights or duties hereunder without the other
party's prior written consent and any prohibited assignment shall be absolutely
void.

                  19.3 Section Headings. Headings and numbers have been set
forth herein for convenience only. Unless the contrary is compelled by the
context, everything contained in each Section applies equally to this entire
Agreement.

                  19.4 Severability of Provisions. Each provision of this
Agreement shall be severable from every other provision of this Agreement for
the purpose of determining the legal enforceability of any specific provision.

                  19.5 Amendments in Writing. A writing signed by each Lender
and Debtor can only amend this Agreement.

                  19.6 Counterparts; Facsimile Execution. This Agreement may be
executed in any number of counterparts and by different parties on separate
counterparts, each of which, when executed and delivered, shall be deemed to be
an original, and all of which, when taken together, shall constitute but one and
the same Agreement. Delivery of an executed counterpart of this Agreement by
facsimile shall be equally as effective as delivery of a manually executed
counterpart of this Agreement. Any party delivering an executed counterpart of
this Agreement by facsimile also shall deliver a manually executed counterpart
of this Agreement but the failure to deliver a manually executed counterpart
shall not affect the validity, enforceability, and binding effect of this
Agreement.

                  19.7 Notices. All notices, demands, and requests that either
party is required or elects to give to the other shall be in writing and shall
be delivered personally or sent by registered or certified mail, first class
postage prepaid, to the business address of the Lenders, as indicated in the
Debtor's records, or to the principal office of the Debtor, whichever is
applicable.



                                       7
<PAGE>

                  19.8 Termination. This Agreement shall terminate as to a
Lender after payment and performance of all Obligations owed to such Lender. At
such time such Lender shall execute documents necessary to terminate its
security interest granted hereunder. At such time, as the payment and
performance of all Obligations of the final Lender have been satisfied, such
Lender shall execute and deliver to Debtor a termination of all remaining
security interests granted by Debtor hereunder.

                  19.9 Integration. This Agreement reflects the entire
understanding of the parties with respect to the transactions contemplated
hereby and shall not be contradicted or qualified by any other agreement, oral
or written, before the date hereof. In the event of a conflict between the terms
of this Agreement and any other agreement or document, the terms of this
Agreement shall control.

                  IN WITNESS WHEREOF, the parties have executed this Security
Agreement on the date first written above.

                                    Debtor:


                                    REDLINE PERFORMANCE PRODUCTS, INC.
                                    a Minnesota corporation


                                    By: /s/ Kent Harle
                                    Title: President


                                    Lender:


                                    /s/ Mark A. Kolesar
                                    By:
                                       -----------------------------------------
                                    Print Name: Mark A. Kolesar
                                    Its:
                                        ----------------------------------------


                                    Lender:

                                    /s/ David G. Mell
                                    By:
                                       -----------------------------------------
                                    Print Name: David G. Mell
                                    Its:
                                        ----------------------------------------






                                       8
<PAGE>

                                   EXHIBIT "A"
                              REGISTERED TRADEMARKS

<Table>
<Caption>
Trademark                                             Registration Date                    Registration No.
---------                                             -----------------                    ----------------
<S>                                                   <C>                                <C>
REDLINE SNOWMOBILES                                   8/15/2000                            2,377,974
REBELLION                                             8/21/2001                            2,480,729
</Table>

                               PENDING TRADEMARKS

<Table>
<Caption>
Trademark                                             Filing Date                          Serial No.
---------                                             -----------                          ----------
<S>                                                <C>                                  <C>
954 REVOLUTION                                        9/24/1999                           75/808,530
CIS                                                   12/13/2000                          76/180,085
R and Design                                          11/2/2000                           76/158,381
INDEPENDENCE                                          11/2/2000                           76/158,407
PATRIOT                                               11/2/2000                           76/158,380
REDLINE                                               11/7/2000                           76/161,294
REVOLT                                                9/24/1999                           75/807,847
T-15                                                  12/13/2000                          76/180,086
R and Design (Canada)                                 5/1/2001                            1,101,415
REDLINE (Canada)                                      5/1/2001                            1,101,416
REVOLT (Canada)                                       5/1/2001                            1,101,417
PATRIOT (Canada)                                      5/1/2001                            1,101,414
</Table>




                                       9
<PAGE>

                                   EXHIBIT "B"


                                     PATENTS


<Table>
<Caption>
Patent Description/Title                                   Issue Date        Patent No.       Name of Inventor
------------------------                                   ----------        ----------       ----------------
<S>                                                        <C>              <C>              <C>

SNOWMOBILE                                                 7/24/2001         6,283,991        Savage, et al.
</Table>

                               PATENT APPLICATIONS

<Table>
<Caption>
Description                                                 Filing Date       Serial No.       Name of Inventor
-----------                                                 -----------       ----------       ----------------
<S>                                                         <C>             <C>               <C>

SNOWMOBILE SUSPENSION                                       02/10/2000        09/502,280       Savage et al.

SNOWMOBILE (Canada)                                         03/14/2000        2,300,342        Savage et al.

SNOWMOBILE DRIVE TRAIN                                      03/13/2001        09/805,416       Savage et al.

SNOWMOBILE EXHAUST SYSTEM                                   04/30/2001        09/864,591       Savage et al.
</Table>



                                       10
<PAGE>

                                   EXHIBIT "C"
                                TOOLING EQUIPMENT


BODY TOOLING:

Hood Panel
Hood Center Section
Seat Base and Foam
Side Pod Left/Right
Taillight
Instrument Panel
Windshield
Pod
Track Cover

CHASSIS:

Main Frame Half Left
Main Frame Half Right
Main Frame Stand Up
All Stamping Tooling for each part needed on main frame
Frame Rail Check Fixtures
Subframe Half Left
Subframe Half Right
Subframe Standup
Floor Board Tube Fixture
All Stamping Tooling for each part needed on subframe
All tube notching tooling
Misc Jigs and setup equipment
Front Bumper

SUSPENSION TOOLING:

Upper A-Arm
Lower A-Arm
Upright
Steering Arm
Stamping Tooling for all Parts
Upper Trailing Arm Tooling
Lower Trailing Arm Tooling

OTHER:

Gear Box Casting
Water Pump - Cover - Impeller


                                       11