<PAGE>   1
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE RESOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

                                       Right to Purchase 75,000 Shares of Common
                                        Stock of Titan Motorcycle Co. of America


                         TITAN MOTORCYCLE CO. OF AMERICA

                          COMMON STOCK PURCHASE WARRANT
NO. W-C-1

                  TITAN MOTORCYCLE CO. OF AMERICA, a Nevada corporation (the
"Company"), hereby certifies that, for value received, ADVANTAGE FUND II LTD. or
registered assigns (the "Holder"), is entitled, subject to the terms set forth
below, to purchase from the Company at any time or from time to time after the
date hereof, and before 5:00 p.m., New York City time, on the Expiration Date
(as hereinafter defined), 75,000 fully paid and nonassessable shares of Common
Stock (as hereinafter defined) at a purchase price per share equal to the
Purchase Price (as hereinafter defined). The number of such shares of Common
Stock and the Purchase Price are subject to adjustment as provided in this
Warrant.

                  This Warrant and the shares of Common Stock issuable upon the
exercise hereof are entitled to the registration and other rights and benefits
provided by the Consent.

                  As used herein the following terms, unless the context
otherwise requires, have the following respective meanings:

                  "Common Stock" includes the Company's Common Stock, $.001 par
         value per share, as authorized on the date hereof, and any other
         securities into which or for which the Common Stock may be converted or
         exchanged pursuant to a plan of recapitalization, reorganization,
         merger, sale of assets or otherwise.
<PAGE>   2
                  "Company" shall include Titan Motorcycle Co. of America and
         any corporation that shall succeed to or assume the obligations of
         Titan Motorcycle Co. of America hereunder in accordance with the terms
         hereof.

                  "Consent" means the Consent and Waiver, dated as of June 16,
         2000, among the Company, the original Holder of this Warrant and the
         holder of another warrant of like tenor.

                  "Expiration Date" means June 30, 2005.

                  "Issuance Date" means the first date of original issuance of
         this Warrant.

                  "1934 Act" means the Securities Exchange Act of 1934, as
         amended.

                  "1933 Act" means the Securities Act of 1933, as amended.

                  "Other Securities" refers to any stock (other than Common
         Stock) and other securities of the Company or any other person
         (corporate or otherwise) which the Holder at any time shall be entitled
         to receive, or shall have received, on the exercise of this Warrant, in
         lieu of or in addition to Common Stock, or which at any time shall be
         issuable or shall have been issued in exchange for or in replacement of
         Common Stock or Other Securities pursuant to Section 4.

                  "Purchase Price" shall mean $1.69 per share, subject to
         adjustment as provided in this Warrant.

                  "Subscription Agreement" means the Subscription Agreement,
         dated as of March 7, 2000, by and between the Company and the original
         Holder of this Warrant, as amended from time to time in accordance with
         its terms.

                  "Trading Day" means a day on which the principal securities
         market for the Common Stock is open for general trading of securities.

                  1.       EXERCISE OF WARRANT.

                  1.1 EXERCISE. (a) This Warrant may be exercised by the Holder
hereof in full or in part at any time or from time to time during the exercise
period specified in the first paragraph hereof until the Expiration Date by
surrender of this Warrant and the subscription form annexed hereto (duly
executed by the Holder), to the Company's transfer agent and registrar for the
Common Stock, with a copy to the Company, and by making payment, in cash or by
certified or official bank check payable to the order of the Company, in the
amount obtained by multiplying (a) the number of shares of Common Stock
designated by the Holder in the subscription form by (b) the Purchase Price then
in effect. On any partial exercise the Company will forthwith issue and deliver
to or upon the order of the Holder hereof a new Warrant or Warrants of like
tenor, in the name of the Holder hereof or as the Holder (upon payment by the
Holder of any applicable transfer taxes) may request, providing in the aggregate
on the face or


                                     - 2 -
<PAGE>   3
faces thereof for the purchase of the number of shares of Common Stock for which
such Warrant or Warrants may still be exercised.

                  (b) Notwithstanding any other provision of this Warrant, in no
event shall the Holder be entitled at any time to purchase a number of shares of
Common Stock on exercise of this Warrant in excess of that number of shares upon
purchase of which the sum of (1) the number of shares of Common Stock
beneficially owned by the Holder and all persons whose beneficial ownership of
shares of Common Stock would be aggregated with the Holder's beneficial
ownership of shares of Common Stock for purposes of Section 13(d) of the 1934
Act and Regulation 13D-G thereunder, (each such person other than the Holder an
"Aggregated Person" and all such persons other than the Holder, collectively,
the "Aggregated Persons") (other than shares of Common Stock deemed beneficially
owned through the ownership by the Holder and all Aggregated Persons of the
Holder of the unexercised portion of this Warrant and the unexercised or
unconverted portion of any other security of the Company which contains similar
provisions) and (2) the number of shares of Common Stock issuable upon exercise
of the portion of this Warrant with respect to which the determination in this
sentence is being made, would result in beneficial ownership by the Holder and
all Aggregated Persons of the Holder of more than 4.9% of the outstanding shares
of Common Stock. For purposes of the immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the 1934 Act
and Regulation 13D-G thereunder, except as otherwise provided in clause (1) of
the immediately preceding sentence.

                  1.2 NET ISSUANCE. Notwithstanding anything to the contrary
contained in Section 1.1, the Holder may elect to exercise this Warrant in whole
or in part by receiving shares of Common Stock equal to the net issuance value
(as determined below) of this Warrant, or any part hereof, upon surrender of
this Warrant to the Company's transfer agent and registrar for the Common Stock
together with the subscription form annexed hereto (duly executed by the
Holder), in which event the Company shall issue to the Holder a number of shares
of Common Stock computed using the following formula:


                  X = Y (A-B)
                      -------
                         A

         where:            X =      the number of shares of Common Stock to be
                                    issued to the Holder

                           Y =      the number of shares of Common Stock as to
                                    which this Warrant is to be exercised

                           A =      the current fair market value of one share
                                    of Common Stock calculated as of the last
                                    Trading Day immediately preceding the
                                    exercise of this Warrant

                           B =      the Purchase Price


                                     - 3 -
<PAGE>   4
                  As used herein, current fair market value of Common Stock as
of a specified date shall mean with respect to each share of Common Stock the
closing sale price of the Common Stock on the principal securities market on
which the Common Stock may at the time be listed or, if there have been no sales
on any such exchange on such day, the average of the highest bid and lowest
asked prices on the principal securities market at the end of such day, or, if
on such day the Common Stock is not so listed, the average of the representative
bid and asked prices quoted in the Nasdaq System as of 4:00 p.m., New York City
time, or, if on such day the Common Stock is not quoted in the Nasdaq System,
the average of the highest bid and lowest asked price on such day in the
domestic over-the-counter market as reported by the National Quotation Bureau,
Incorporated, or any similar successor organization, in each such case averaged
over a period of five consecutive Trading Days consisting of the day as of which
the current fair market value of a share of Common Stock is being determined (or
if such day is not a Trading Day, the Trading Day next preceding such day) and
the four consecutive Trading Days prior to such day. If on the date for which
current fair market value is to be determined the Common Stock is not listed on
any securities exchange or quoted in the Nasdaq System or the over-the-counter
market, the current fair market value of Common Stock shall be the highest price
per share which the Company could then obtain from a willing buyer (not a
current employee or director) for shares of Common Stock sold by the Company,
from authorized but unissued shares, as determined in good faith by the Board of
Directors of the Company, unless prior to such date the Company has become
subject to a merger, acquisition or other consolidation pursuant to which the
Company is not the surviving party, in which case the current fair market value
of the Common Stock shall be deemed to be the value received by the holders of
the Company's Common Stock for each share thereof pursuant to the Company's
acquisition.

                  2. DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE. As soon
as practicable after the exercise of this Warrant, and in any event within three
Trading Days thereafter, the Company at its expense (including the payment by it
of any applicable issue or stamp taxes) will cause to be issued in the name of
and delivered to the Holder hereof, or as the Holder (upon payment by the Holder
of any applicable transfer taxes) may direct, a certificate or certificates for
the number of fully paid and nonassessable shares of Common Stock (or Other
Securities) to which the Holder shall be entitled on such exercise, in such
denominations as may be requested by the Holder, plus, in lieu of any fractional
share to which the Holder would otherwise be entitled, cash equal to such
fraction multiplied by the then current fair market value (as determined in
accordance with subsection 1.2) of one full share, together with any other stock
or other securities and property (including cash, where applicable) to which the
Holder is entitled upon such exercise pursuant to Section 1 or otherwise. Upon
exercise of this Warrant as provided herein, the Company's obligation to issue
and deliver the certificates for Common Stock shall be absolute and
unconditional, irrespective of the absence of any action by the Holder to
enforce the same, any waiver or consent with respect to any provision thereof,
the recovery of any judgment against any person or any action to enforce the
same, any failure or delay in the enforcement of any other obligation of the
Company to the Holder, or any setoff, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Holder or any other person
of any obligation to the Company, and irrespective of any other circumstance
which might otherwise limit such obligation of the Company to the Holder in
connection with such exercise. If the Company fails to issue and deliver the
certificates for the Common Stock to the


                                     - 4 -
<PAGE>   5
Holder pursuant to the first sentence of this paragraph as and when required to
do so, in addition to any other liabilities the Company may have hereunder and
under applicable law, the Company shall pay or reimburse the Holder on demand
for all out-of-pocket expenses including, without limitation, reasonable fees
and expenses of legal counsel incurred by the Holder as a result of such
failure.

                  3. ADJUSTMENT FOR DIVIDENDS IN OTHER STOCK, PROPERTY, ETC.;
RECLASSIFICATION, ETC. In case at any time or from time to time after the
Issuance Date, all the holders of Common Stock (or Other Securities) shall have
received, or (on or after the record date fixed for the determination of
stockholders eligible to receive) shall have become entitled to receive, without
payment therefor,

                  (a) other or additional stock or other securities or property
         (other than cash) by way of dividend, or

                  (b) any cash (excluding cash dividends payable solely out of
         earnings or earned surplus of the Company), or

                  (c) other or additional stock or other securities or property
         (including cash) by way of spin-off, split-up, reclassification,
         recapitalization, combination of shares or similar corporate
         rearrangement,

other than additional shares of Common Stock (or Other Securities) issued as a
stock dividend or in a stock-split (adjustments in respect of which are provided
for in Section 5), then and in each such case the Holder, on the exercise hereof
as provided in Section 1, shall be entitled to receive the amount of stock and
other securities and property (including cash in the cases referred to in
subdivisions (b) and (c) of this Section 3; provided, however, that if such
property is not then available, the Company shall either (A) substitute cash or
property of equivalent value or (B) reduce the Purchase Price and/or increase
the number of shares of Common Stock issuable upon the exercise of this Warrant
to reflect the value of the property distributable to stockholders, in each case
in a manner reasonably satisfactory to the Holder) which the Holder would hold
on the date of such exercise if on the date thereof the Holder had been the
holder of record of the number of shares of Common Stock called for on the face
of this Warrant and had thereafter, during the period from the date hereof to
and including the date of such exercise, retained such shares and all such other
or additional stock and other securities and property (including cash in the
case referred to in subdivisions (b) and (c) of this Section 3) receivable by
the Holder as aforesaid during such period, giving effect to all adjustments
called for during such period by Section 4. Notwithstanding anything in this
Section 3 to the contrary, no adjustments pursuant to this Section 3 shall
actually be made until the cumulative effect of the adjustments called for by
this Section 3 since the date of the last adjustment actually made would change
the amount of stock or other securities and property which the Holder would hold
by more than 1%.

                  4. EXERCISE UPON REORGANIZATION, CONSOLIDATION, MERGER, ETC.
In case at any time or from time to time after the Issuance Date, the Company
shall (a) effect a reorganization, (b) consolidate with or merge into any other
person, (c) effect an exchange of outstanding shares of the Company for
securities of any other person or (d) transfer all or


                                     - 5 -
<PAGE>   6
substantially all of its properties or assets to any other person under any plan
or arrangement contemplating the dissolution of the Company, then, in each such
case, as a condition of such reorganization, consolidation, merger, share
exchange, sale or conveyance, (i) the Company shall give at least 15 days notice
to the Holder of such pending transaction whereby the Holder shall have the
right to exercise this Warrant prior to any such reorganization, consolidation,
merger, share exchange, sale or conveyance and (ii) if the Holder does not so
exercise this Warrant in full, the Company shall cause effective provisions to
be made so that the Holder shall have the right thereafter, by exercising this
Warrant (in lieu of the shares of Common Stock of the Company purchasable and
receivable upon exercise of the rights represented hereby immediately prior to
such transaction) to purchase the kind and amount of shares of stock and other
securities and property (including cash); provided, however, that if such
property is not then available, the Company shall either (A) substitute cash or
property of equivalent value or (B) reduce the Purchase Price and/or increase
the number of shares of Common Stock issuable upon the exercise of this Warrant
to reflect the value of the property distributable to stockholders, in each case
in a manner reasonably satisfactory to the Holder) receivable upon such
reorganization, consolidation, merger, share exchange, sale or conveyance by a
holder of the number of shares of Common Stock that might have been received
upon exercise of this Warrant immediately prior to such reorganization,
consolidation, merger, share exchange, sale or conveyance. Any exercise of this
Warrant pursuant to notice under this Section may, at the option of the Holder,
be conditioned upon the closing of such reorganization, consolidation, merger,
sale or conveyance which is the subject of the notice and the exercise of this
Warrant shall not be deemed to have occurred until immediately prior to the
closing of such transaction.

                  5. ADJUSTMENT FOR EXTRAORDINARY EVENTS. In the event that
after the Issuance Date the Company shall (i) issue additional shares of Common
Stock as a dividend or other distribution on outstanding Common Stock, (ii)
subdivide or reclassify its outstanding shares of Common Stock, or (iii) combine
its outstanding shares of Common Stock into a smaller number of shares of Common
Stock, then, in each such event, the Purchase Price shall, simultaneously with
the happening of such event, be adjusted by multiplying the Purchase Price in
effect immediately prior to such event by a fraction, the numerator of which
shall be the number of shares of Common Stock outstanding immediately prior to
such event and the denominator of which shall be the number of shares of Common
Stock outstanding immediately after such event, and the product so obtained
shall thereafter be the Purchase Price then in effect. The Purchase Price, as so
adjusted, shall be readjusted in the same manner upon the happening of any
successive event or events described herein in this Section 5. The Holder shall
thereafter, on the exercise hereof as provided in Section 1, be entitled to
receive that number of shares of Common Stock determined by multiplying the
number of shares of Common Stock which would be issuable on such exercise
immediately prior to such issuance by a fraction of which (i) the numerator is
the Purchase Price in effect immediately prior to such issuance and (ii) the
denominator is the Purchase Price in effect on the date of such exercise.

                  6. FURTHER ASSURANCES. The Company will take all action that
may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable shares of stock, free from all taxes,
liens and charges with respect to the issue thereof, on the exercise of all or
any portion of this Warrant from time to time outstanding.


                                     - 6 -
<PAGE>   7
                  7.       NOTICES OF RECORD DATE, ETC.  In the event of

                  (a) any taking by the Company of a record of the holders of
         any class of securities for the purpose of determining the holders
         thereof who are entitled to receive any dividend on, or any right to
         subscribe for, purchase or otherwise acquire any shares of stock of any
         class or any other securities or property, or to receive any other
         right, or

                  (b) any capital reorganization of the Company, any
         reclassification or recapitalization of the capital stock of the
         Company or any transfer of all or substantially all of the assets of
         the Company to or consolidation or merger of the Company with or into
         any other person (other than a wholly-owned subsidiary of the Company),
         or

                  (c) any voluntary or involuntary dissolution, liquidation or
         winding-up of the Company,

then and in each such event the Company will mail or cause to be mailed to the
Holder, at least ten days prior to such record date, a notice specifying (i) the
date on which any such record is to be taken for the purpose of such dividend,
distribution or right, and stating the amount and character of such dividend,
distribution or right, (ii) the date on which any such reorganization,
reclassification, recapitalization, transfer, consolidation, merger,
dissolution, liquidation or winding-up is to take place, and the time, if any is
to be fixed, as of which the holders of record of Common Stock (or Other
Securities) shall be entitled to exchange their shares of Common Stock (or Other
Securities) for securities or other property deliverable on such reorganization,
reclassification, recapitalization, transfer, consolidation, merger,
dissolution, liquidation or winding-up, and (iii) the amount and character of
any stock or other securities, or rights or options with respect thereto,
proposed to be issued or granted, the date of such proposed issue or grant and
the persons or class of persons to whom such proposed issue or grant is to be
offered or made. Such notice shall also state that the action in question or the
record date is subject to the effectiveness of a registration statement under
the 1933 Act, or a favorable vote of stockholders if either is required. Such
notice shall be mailed at least ten days prior to the date specified in such
notice on which any such action is to be taken or the record date, whichever is
earlier. Any failure to receive such notice shall not affect the corporate
action taken.

                  8. RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF
WARRANTS. The Company will at all times reserve and keep available out of its
authorized but unissued shares of capital stock, solely for issuance and
delivery on the exercise of this Warrant, a sufficient number of shares of
Common Stock (or Other Securities) to effect the full exercise of this Warrant
and the exercise, conversion or exchange of any other warrant or security of the
Company exercisable for, convertible into, exchangeable for or otherwise
entitling the holder to acquire shares of Common Stock (or Other Securities),
and if at any time the number of authorized but unissued shares of Common Stock
(or Other Securities) shall not be sufficient to effect such exercise,
conversion or exchange, the Company shall take such action as may be necessary
to increase its authorized but unissued shares of Common Stock (or Other
Securities) to such number as shall be sufficient for such purposes.


                                     - 7 -
<PAGE>   8
                  9. TRANSFER OF WARRANT. This Warrant shall inure to the
benefit of the successors to and assigns of the Holder. This Warrant and all
rights hereunder, in whole or in part, are registrable at the office or agency
of the Company referred to below by the Holder hereof in person or by his duly
authorized attorney, upon surrender of this Warrant properly endorsed.

                  10. REGISTER OF WARRANTS. The Company shall maintain, at the
principal office of the Company (or such other office as it may designate by
notice to the Holder hereof), a register in which the Company shall record the
name and address of the person in whose name this Warrant has been issued, as
well as the name and address of each successor and prior owner of such Warrant.
The Company shall be entitled to treat the person in whose name this Warrant is
so registered as the sole and absolute owner of this Warrant for all purposes.

                  11. EXCHANGE OF WARRANT. This Warrant is exchangeable, upon
the surrender hereof by the Holder hereof at the office or agency of the Company
referred to in Section 10, for one or more new Warrants of like tenor
representing in the aggregate the right to subscribe for and purchase the number
of shares of Common Stock which may be subscribed for and purchased hereunder,
each of such new Warrants to represent the right to subscribe for and purchase
such number of shares as shall be designated by said Holder hereof at the time
of such surrender.

                  12. REPLACEMENT OF WARRANT. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction of this
Warrant, on delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of this Warrant, the Company at its
expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

                  13. WARRANT AGENT. The Company represents and warrants that it
has appointed Signature Stock Transfer, Inc., as Transfer Agent and Registrar,
as the exercise agent for purposes of issuing shares of Common Stock (or Other
Securities) on the exercise of this Warrant pursuant to Section 1. The Company
may, by notice to the Holder, appoint an agent having an office in the United
States of America for the purpose of exchanging this Warrant pursuant to Section
11 and replacing this Warrant pursuant to Section 12, or either of the
foregoing, and thereafter any such exchange or replacement, as the case may be,
shall be made at such office by such agent.

                  14. REMEDIES. The Company stipulates that the remedies at law
of the Holder in the event of any default or threatened default by the Company
in the performance of or compliance with any of the terms of this Warrant are
not and will not be adequate, and that such terms may be specifically enforced
by a decree for the specific performance of any agreement contained herein or by
an injunction against a violation of any of the terms hereof or otherwise.

                  15. NO RIGHTS OR LIABILITIES AS A STOCKHOLDER. This Warrant
shall not entitle the Holder hereof to any voting rights or other rights as a
stockholder of the Company. No provision of this Warrant, in the absence of


                                     - 8 -
<PAGE>   9
affirmative action by the Holder hereof to purchase Common Stock, and no mere
enumeration herein of the rights or privileges of the Holder hereof, shall give
rise to any liability of the Holder for the Purchase Price or as a stockholder
of the Company, whether such liability is asserted by the Company or by
creditors of the Company.

                  16. NOTICES, ETC. All notices and other communications from
the Company to the registered Holder or from the registered Holder to the
Company shall be delivered personally (which shall include telephone line
facsimile transmission with answer back confirmation) or by courier and shall be
effective upon receipt, addressed to each party at the address or telephone line
facsimile transmission number for each party set forth in the Subscription
Agreement or at such other address or telephone line facsimile transmission
number as a party shall have provided to the other party in accordance with this
provision.

                  17. TRANSFER RESTRICTIONS. By acceptance of this Warrant, the
Holder represents to the Company that the Holder is an "accredited investor" as
defined in Regulation D under the 1933 Act, has reviewed the Company's periodic
filings made under the 1934 Act and desires no further information, is aware of
the risks of investing in the Company, and confirms that this Warrant is being
acquired for the Holder's own account and for the purpose of investment and not
with a view to, or for sale in connection with, the distribution thereof, nor
with any present intention of distributing or selling this Warrant or the Common
Stock issuable upon exercise of this Warrant. The Holder acknowledges and agrees
that this Warrant and, except as otherwise provided in the Consent, the shares
of Common Stock issuable upon exercise of this Warrant (if any) have not been
(and at the time of acquisition by the Holder, will not have been or will not
be), registered under the 1933 Act or under the securities laws of any state, in
reliance upon certain exemptive provisions of such statutes. The Holder further
recognizes and acknowledges that because this Warrant and, except as provided in
the Consent, the Common Stock issuable upon exercise of this Warrant (if any)
are unregistered, they may not be eligible for resale, and may only be resold in
the future pursuant to an effective registration statement under the 1933 Act
and any applicable state securities laws, or pursuant to a valid exemption from
such registration requirements. Unless the shares of Common Stock issuable upon
exercise of this Warrant have theretofore been registered for resale under the
1933 Act, the Company may require, as a condition to the issuance of Common
Stock upon the exercise of this Warrant (i) in the case of an exercise in
accordance with Section 1.1 hereof, a confirmation as of the date of exercise of
the Holder's representations pursuant to this Section 17, or (ii) in the case of
an exercise in accordance with Section 1.2 hereof, an opinion of counsel
reasonably satisfactory to the Company that the shares of Common Stock to be
issued upon such exercise may be issued without registration under the 1933 Act.

                  18. LEGEND. Unless theretofore registered for resale under the
1933 Act, each certificate for shares issued upon exercise of this Warrant shall
bear the following legend:

         The securities represented by this certificate have not been registered
         under the Securities Act of 1933, as amended. The securities have been
         acquired for investment and may not be resold, transferred or assigned
         in the absence of an effective registration statement for the
         securities under the Securities Act of 1933, as amended, or an opinion
         of counsel reasonably acceptable to the Company that registration is
         not required under said Act.


                                     - 9 -
<PAGE>   10
                  19. AMENDMENT; WAIVER. This Warrant and any terms hereof may
be changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge
or termination is sought. Notwithstanding any other provision of this Warrant or
the Subscription Agreement, in addition to the requirements of the immediately
preceding sentence, any amendment of (x) Section 1.1(b), (y) the definition of
the term Aggregated Person or (z) this sentence shall require approval by the
affirmative vote of the holders of a majority of the outstanding shares of
Common Stock, present in person or represented by proxy at a duly convened
meeting of stockholders of the Company, and entitled to vote, or the consent
thereto in writing by holders of a majority of the outstanding shares of Common
Stock, and the stockholders of the Company are hereby expressly made third party
beneficiaries of this sentence.

                  20. MISCELLANEOUS. This Warrant shall be construed and
enforced in accordance with and governed by the internal laws of the State of
Arizona. The headings in this Warrant are for purposes of reference only, and
shall not limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision.


                                     - 10 -
<PAGE>   11
                  IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed on its behalf by one of its officers thereunto duly authorized.

Dated:  June 20, 2000                         TITAN MOTORCYCLE CO. OF AMERICA



                                              By: ______________________________

                                              Title: ___________________________


                                     - 11 -
<PAGE>   12
                              FORM OF SUBSCRIPTION

                         TITAN MOTORCYCLE CO. OF AMERICA

                   (To be signed only on exercise of Warrant)

<TABLE>
<S>                                                          <C>
TO:      Signature Stock Transfer & Trust, Inc.,              CC:      Titan Motorcycle Co. of America
            as Exercise Agent                                          2222 West Peoria Avenue
         14675 Midway Road                                             Phoenix, Arizona  85029
         Suite 221
         Dallas, Texas 75244
</TABLE>

         1. The undersigned Holder of the attached original, executed Warrant
hereby elects to exercise its purchase right under such Warrant with respect to
______________ shares of Common Stock, as defined in the Warrant, of Titan
Motorcycle Co. of America, a Nevada corporation (the "Company").

         2. The undersigned Holder (check one):

     [ ]          (a) elects to pay the aggregate purchase price for such shares
                  of Common Stock (the "Exercise Shares") (i) by lawful money of
                  the United States or the enclosed certified or official bank
                  check payable in United States dollars to the order of the
                  Company in the amount of $___________, or (ii) by wire
                  transfer of United States funds to the account of the Company
                  in the amount of $____________, which transfer has been made
                  before or simultaneously with the delivery of this Form of
                  Subscription pursuant to the instructions of the Company;

         or

     [ ]          (b) elects to receive shares of Common Stock having a value
                  equal to the value of the Warrant as permitted by and
                  calculated in accordance with Section 1.2 of the Warrant.

         3. Please issue a stock certificate or certificates representing the
appropriate number of shares of Common Stock in the name of the undersigned or
in such other name as is specified below:

                  Name: _________________________________________

                  Address: _______________________________________


         4. The undersigned Holder confirms with respect to such Holder and the
shares of Common Stock issuable pursuant to this exercise the representations
set forth in Section 18 of the Warrant.


                                       S-1
<PAGE>   13
Dated: ____________ ___, _______        ______________________________________

                                        (Signature must conform to name of
                                        Holder as specified on the face of the
                                        Warrant)


                                        _______________________________________
                                        (Address)


                                        _______________________________________


                                      S-2