Document:

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                                                                    EXHIBIT 10.1

                                    AGREEMENT
                                    ---------

         THIS AGREEMENT is entered into this 29th day of August 2000 among
GENESIS WORLDWIDE INC. (formerly The Monarch Machine Tool Company), an Ohio
corporation ("Genesis"), each of the SELLING STOCKHOLDERS (as defined in Section
1 of this Agreement), and THREE CITIES RESEARCH, INC., a Delaware corporation,
solely as Stockholders Representative under the Stock Purchase Agreement (as
defined in Section 1 of this Agreement) ("TCR"), under the following
circumstances:

                  A. Genesis and the Selling Stockholders are parties to the
         Stock Purchase Agreement, pursuant to which Genesis purchased, and the
         Selling Stockholders sold to Genesis, all of the capital stock of
         Precision Industrial Corporation, a Delaware corporation (the
         "Company") on June 30, 1999;

                  B. In Article IX of the Stock Purchase Agreement, each of the
         Selling Stockholders appointed TCR as its representative and attorney
         in fact with respect to all matters concerning the Selling Stockholders
         set forth in the Stock Purchase Agreement or in any other agreements
         entered into by the Selling Stockholders in accordance with the Stock
         Purchase Agreement; and

                  C. Upon the terms and conditions set forth herein, Genesis and
         the Selling Stockholders desire to resolve certain differences that
         have arisen among them relating to the purchase of the capital stock of
         the Company pursuant to the Stock Purchase Agreement;

         NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF
WHICH IS HEREBY ACKNOWLEDGED, GENESIS, EACH OF THE SELLING STOCKHOLDERS AND TCR
AGREE AS FOLLOWS:

         SECTION 1. DEFINED TERMS. For purposes of this Agreement, the following
terms shall have the following meanings:

         "Agreement Regarding Shares" means the Agreement Regarding Shares,
dated June 30, 1999, between Genesis and TCR, as Stockholders Representative,
relating to the release of the Stock Consideration to the Selling Stockholders.

         "Interest Payment Agreement" means the Interest Payment Agreement,
dated June 27, 2000, between Genesis and TCR, as Stockholders Representative.

                                    10.1 - 1

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         "Note/Warrant Agreement" means the Agreement among Genesis and the
Selling Stockholders, dated June 30, 1999, pursuant to which the Selling
Stockholders purchased the Subordinated Note and Genesis agreed, among other
things, to issue Warrants.

         "Selling Stockholders" means the persons and entities listed on Exhibit
A to the Stock Purchase Agreement, a copy of which is attached hereto as
APPENDIX A and incorporated herein by this reference.

         "Special Note" means the 8% Special Junior Subordinated Note in the
original principal amount of $840,000 issued by Genesis on June 30, 1999 to TCR,
as Stockholders Representative, in part payment of the purchase price provided
for in the Stock Purchase Agreement.

         "Stock Consideration" means the 500,000 common shares of Genesis
evidenced by Certificate No. C 15350, issued to TCR, as Stockholders
Representative, dated June 30, 1999, which were delivered in part payment of the
purchase price provided for in the Stock Purchase Agreement.

         "Stock Purchase Agreement" means the Stock Purchase Agreement between
Genesis and each of the Selling Stockholders dated May 13, 1999.

         "Subordinated Note" means the 12% Junior Subordinated Note of Genesis
in the original principal amount of $15,000,000 issued on June 30, 1999 to TCR,
as Stockholders Representative, pursuant to the Note/Warrant Agreement, as
amended by the Interest Payment Agreement.

         "Three Cities Research, Inc." means Three Cities Research, Inc., a
Delaware corporation, in its individual capacity and not in any representative
capacity.

         SECTION 2. SOLD COMPANIES LITIGATION AND CERTAIN OTHER MATTERS
INVOLVING SOLD COMPANIES.

         (A) At the time this Agreement is executed, TCR shall, in payment of
the obligations identified in Section 2(B) of this Agreement, wire transfer
$325,000 to Genesis in immediately available funds to an account designated by
Genesis in writing to TCR.

         (B) Upon receipt of the $325,000 payment, the following obligations
shall be deemed paid: (i) all costs known to, and incurred by, Genesis or a
subsidiary of Genesis at May 31, 2000 relating to litigation claims asserted
against companies previously sold by the Company and previously identified by
the parties as the Foster, Dunklin, Belcher, Sigmon, Grim, Viars, Dave,
Besavage, Kirkpatrick, and Callahan litigation claims; (ii) all costs known to,
and incurred by, Genesis or a subsidiary of Genesis at May 31, 2000 relating to
worker's compensation claims of employees of companies previously sold by the
Company, which claims are presently being administered by Genesis or a
subsidiary of Genesis in connection with certain insurance policies which have a
self-insured retention amount per claim; (iii) all costs known to, and incurred
by, Genesis or a subsidiary

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of Genesis at June 30, 2000 relating to unemployment taxes due to the State of
Illinois by Herr Voss Corporation for periods prior to June 30, 1999 which costs
were not recorded or paid at June 30, 1999 by Herr Voss Corporation; (iv) all
costs known to, and incurred by, Genesis or a subsidiary of Genesis at June 30,
2000 relating to a sales and use tax assessment by the State of Pennsylvania
against Herr Voss Corporation for periods prior to June 30, 1999 which costs
were not recorded or paid at June 30, 1999 by Herr Voss Corporation; and (v)
$8,500 in costs incurred or to be incurred by Genesis in connection with
obtaining a determination letter for the Roll Centers, Inc. 401(k) plan
established in 1993.

         (C) Except as specifically set forth in Section 2(B) of this Agreement,
nothing contained in this Agreement, including the provisions of Section 7 of
this Agreement, shall be construed or interpreted in any manner to reduce,
lessen, or limit the indemnification obligations of the Selling Stockholders
under "Paragraph 7.3 - Indemnification Against Liabilities with Regard to
Previously Sold Companies" and "Paragraph 7.4 - Tax Indemnification" of the
Stock Purchase Agreement. TCR hereby specifically acknowledges the obligation of
the Selling Stockholders to continue to pay promptly upon submission of proper
documentation claims covered by such paragraphs of the Stock Purchase Agreement.

         (D) Genesis or a subsidiary of Genesis has caused National City to
issue Letter of Credit No. SPA008072 (dated May 12, 1999) in the amount of
$350,000 for the benefit of Techint Technologies Inc. to cover claims arising
against Herr-Voss Industries, Inc. under the Settlement Agreement and Mutual
Release dated May 11, 1999 between Techint Technologies Inc. and Herr-Voss
Industries, Inc. (the "Techint LOC"). TCR hereby agrees that any payments
properly made under the Techint LOC to Techint are the responsibility of the
Selling Stockholders under Paragraph 7.3 of the Stock Purchase Agreement. As
soon as practical after the execution of this Agreement (but not more than 30
days thereafter), TCR shall deliver to Genesis a "back-up" letter of credit of a
commercial bank in favor of National City in the amount of $262,500 which shall
be designed to re-imburse the amount of any loss National City suffers as a
result of payment by National City to Techint under the Techint LOC. To the
extent that any such loss suffered by National City under the Techint LOC shall
exceed the face amount of the back-up letter of credit, the Selling Stockholders
shall directly reimburse National City the amount of such loss.

         (E) Genesis or a subsidiary of Genesis has caused ING (U.S.) Capital
LLC ("ING") to issue Letter of Credit No.G74626 (dated December 10,1999), as
amended by amendment no. 1 thereto (dated July 5, 2000) (the "ING LOC"), in the
amount of $720,000 for the benefit of the Zurich-American Insurance Group
("Zurich"), of which $507,000 is to cover the self-insured retention portion of
certain insurance claims as to which Salem Corporation retained responsibility
in connection with the sale of certain companies (the "Salem Obligations") and
for which Genesis is indemnified under Paragraph 7.3 of the Stock Purchase
Agreement. TCR hereby agrees that any payments properly made under the ING LOC
to Zurich to reimburse it for a Salem Obligation are the responsibility of the
Selling Stockholders under Paragraph 7.3 of the Stock Purchase Agreement. As
soon as practical after the execution of this Agreement (but not more than 30
days thereafter),

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TCR shall deliver to Genesis a "back-up" letter of credit of a commercial bank
in favor of ING in the amount of $380,250 which shall be designed to re-imburse
the amount of any loss ING suffers as a result of payment by ING to Zurich for a
Salem Obligation under the ING LOC. To the extent that any such loss suffered by
ING under the ING LOC shall exceed the face amount of the back-up letter of
credit, the Selling Stockholders shall directly reimburse ING the amount of such
loss.

         (F) In the event that Genesis notifies TCR in writing that ING has
advised Genesis that Genesis will be required to treat the full face amount the
Techint LOC and the ING LOC as indebtedness of Genesis, even though such
obligations are supported by the "back-up" letter of credit, then TCR agrees to
provide original letters of credit in lieu of "back-up" letters of credit, with
the same terms as the "back-up" letters of credit would have had, except they
will be direct obligations to Techint and Zurich, respectively.

         SECTION 3.  SUBORDINATED NOTE.

         (A) The Subordinated Note shall be amended as of July 1, 2000 to
reflect the following changes:

                  (1) The name "Genesis Worldwide Inc." shall be substituted for
         "The Monarch Machine Tool Company" to reflect the name change of the
         payor of the Subordinated Note;

                  (2) The principal amount of the Subordinated Note at July 1,
         2000 shall be changed to "$11,947,541," which amount was arrived at (i)
         by reducing the original principal amount of $15,000,000 by $3,500,000
         and (ii) by increasing the principal amount by $447,541 as required
         pursuant to Section 2 of the Interest Payment Agreement;

                  (3) For the period from July 1, 2000 through December 31,
         2001, the Subordinated Note shall bear interest at a rate of 9% per
         annum, with the applicable interest rate changing to 12.50% per annum
         effective January 1, 2002 until March 31, 2002 and increasing by 50
         basis points on April 1, 2002 and on each July 1, October 1, January 1,
         and April 1 after that until April 1, 2004, on and after which the rate
         of interest payable under the Subordinated Note will be 17% per annum;
         and

                  (4) The interest payment due and payable under the
         Subordinated Note on each of September 30, 2000, December 31,2000 and
         March 31, 2001 shall not be paid in cash, but in lieu thereof, an
         amount equal to such cash payment shall be paid by increasing the
         principal amount of the Subordinated Note by such amount effective on
         the respective dates that such interest payments are due and payable;
         and the principal amount of the Subordinated Note as so increased shall
         bear interest and be payable at the maturity date, all as provided in
         the Subordinated Note.

                                    10.1 - 4

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         (B) The Subordinated Note, as amended, to give effect to the provisions
of Section 3(A) of this Agreement shall be restated in the form set forth in the
"12% Junior Subordinated Note, As Restated," attached hereto as APPENDIX B (the
"Restated Subordinated Note"). At the time this Agreement is executed, Genesis
shall execute and deliver to TCR the Restated Subordinated Note, and TCR shall
deliver the Subordinated Note to Genesis for cancellation.

         (C) Upon the execution of this Agreement, the Interest Payment
Agreement shall be null and void and of no further force and effect.

         SECTION 4. SPECIAL NOTE. Notwithstanding anything contained in the
Special Note to the contrary, in the event that Genesis closes on the sale of
its 50% interest in the Nippon Herr Joint Venture and within five business days
after such closing, Genesis transfers and assigns to TCR a 50% interest in any
payments or other consideration it received or will receive for such interest
(the "Nippon Herr Consideration"), then the Special Note shall be deemed paid in
full. Genesis further agrees it will immediately upon the receipt of any Nippon
Herr Consideration assigned to TCR (and in no event, more than five business
days after the receipt of any such payment), deliver such payment to TCR.

         SECTION 5.  STOCK CONSIDERATION.

         (A) At the time this Agreement is executed, TCR shall transfer and
assign the Stock Consideration to Genesis by surrendering Genesis Certificate
No. 15350 to Genesis, endorsed in blank. Upon the transfer and assignment of the
Stock Consideration to Genesis, the Selling Stockholders shall have no further
interest in the Stock Consideration.

         (B) Upon the execution of this Agreement, the Agreement Regarding
Shares shall be null and void and of no further force and effect.

         SECTION 6.  NOTE/WARRANT AGREEMENT.

         (A) Notwithstanding anything contained in the Note/Warrant Agreement or
any related document to the contrary, Genesis is hereby released of any
obligation to issue and sell warrants to purchase shares of its common stock to
the Selling Stockholders. The parties hereto acknowledge that Warrant No. W-001
for the purchase of 100,000 shares of common stock of Genesis, issued to TCR on
June 30, 1999, which will remain outstanding, is the only warrant to purchase
shares of common stock issued or issuable in connection with the Note/Warrant
Agreement as modified by this Section 6.

         (B) J. William Uhrig shall not be designated to serve as a director of
Genesis by TCR pursuant to Section 3 of the Note/Warrant Agreement.

                                    10.1 - 5

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         SECTION 7.  RELEASES.

         (A) Genesis hereby releases and discharges Selling Stockholders, TCR,
and Three Cities Research, Inc. from any and all claims, causes of action,
claims for relief, damages and demands of whatsoever kind or nature which
Genesis had, now has, or may hereafter have against any of them ("Claims"),
arising, directly or indirectly, out of or in an way connected with or based
upon "Paragraph 3.2. Selling Stockholders' Joint Representations and Warranties"
of the Stock Purchase Agreement, or out of or in any way connected with or based
upon any related claim under "Paragraph 7.1 Indemnification Against Loss Due to
Inaccuracies in Selling Stockholders' Representations and Warranties," except
that the foregoing release and discharge shall not apply to Claims arising under
the Paragraph 3.2(c) of such Paragraph or out of or in any way connected with or
based upon any claim under "Paragraph 7.1 Indemnification Against Loss Due to
Inaccuracies in Selling Stockholders' Representations and Warranties" related to
Paragraph 3.2(c) or to claims arising under this Agreement.

         (B) The Selling Stockholders, TCR, and Three Cities Research, Inc.
hereby release and discharge Genesis from any and all claims, causes of action,
claims for relief, damages and demands of whatsoever kind or nature which the
Selling Stockholders, TCR, or Three Cities Research, Inc. had, now has, or may
hereafter have ("Claims"), arising, directly or indirectly, out of or in an way
connected with or based upon the letter of Richard E. Clemens to TCR, dated
April 27, 2000, or "Article 3.3. Buyer's Representations and Warranties" of the
Stock Purchase Agreement, except that the foregoing release and discharge shall
not apply to Claims arising under Paragraphs 3.3(a), 3.3(b), 3.3(c), 3.3(k) or
3.3(l) of such Paragraph 3.3 or to claims arising under this Agreement.

         (C) When used in this Section 7, (i) "Genesis" means Genesis, any
subsidiary of Genesis, any director, officer, or agent of Genesis or any
subsidiary of Genesis and the successors, heirs, administrators, executors and
assigns of any of the foregoing, (ii) "Selling Stockholders" means each of the
Selling Stockholders, TCR, and any director, officer, partner, or agent of
either a Selling Stockholder or TCR and the successors, heirs, administrators,
executors and assigns of any of the foregoing, and (iii) "Three Cities Research,
Inc." means Three Cities Research, Inc., any director, officer, partner, or
agent of Three Cities Research, Inc. and the successors, heirs, administrators,
executors and assigns of any of the foregoing

         SECTION 8.  REPRESENTATIONS.

         (A) Three Cities Research, Inc. represents and warrants that it has the
authority to enter into this Agreement on behalf of each of the Selling
Stockholders and to perform all acts or make all representations described in
this Agreement on behalf of each of the Selling Stockholders. Three Cities
Research, Inc. agrees to hold Genesis harmless from any loss it may suffer as a
result of a breach of the foregoing representation.

                                    10.1 - 6

<PAGE>   7

         (B) Genesis represents and warrants that it has the authority to enter
into this Agreement and that after a complete investigation, it did not obtain
any information indicating any fraud by the Selling Stockholders (as defined at
Section 7(C), above) or TCR.

         SECTION 9. GOVERNING LAW. This Agreement and the obligations of the
parties and the rights of the parties hereunder shall will be governed by the
substantive laws of Delaware.

         SECTION 10. FURTHER ACTIONS. Each party hereto agrees to take promptly
all actions reasonably necessary to carry out the terms, conditions and intent
of this Agreement.

         SECTION 11. NOTICES. Any notice or other communication under or
relating to this Agreement shall be given as provided in Paragraph 10.7 of the
Stock Purchase Agreement.

         SECTION 12. CONSTRUCTION. Genesis, TCR, and Three Cities Research, Inc.
have jointly drafted this Agreement and, therefore, no provision of this
Agreement will be construed against any party based upon authorship.

         SECTION 13. SIGNATURES. This Agreement may be executed in multiple
copies and signatures may be made by facsimile transmissions.

         SECTION 14. NO RELIANCE. Genesis, TCR, and Three Cities Research, Inc.
acknowledge that they have not relied on any statement, representation,
omission, inducement, or promise by the other party (or any other officer,
agent, employee, representative, or attorney for any other party) in executing
this Agreement except as expressly stated in this Agreement.

         SECTION 15. NO ADMISSION OF LIABILITY. Genesis and TCR acknowledge that
this Agreement is the result of the compromise of disputed claims; accordingly,
this Agreement is not to be construed as an admission of any liability, fault,
or responsibility on the part of Genesis, any of the Selling Stockholders or
TCR.

         SECTION 16. VOLUNTARY AGREEMENT. Genesis and TCR represent and warrant
that they have read this Agreement and know and understand its full content;
Genesis, each of the Selling Stockholders, and TCR voluntarily enter into this
Agreement after full consultation with counsel.

         SECTION 17. OTHER AGREEMENTS. Except as amended, modified, or
superceded by specific provisions of this Agreement, the Stock Purchase
Agreement and the Note/Warrant Agreement shall continue in full force and
effect.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first written above.

                                    10.1 - 7

<PAGE>   8

GENESIS WORLDWIDE INC.                          THREE CITIES RESEARCH, INC., AS
                                                 STOCKHOLDERS REPRESENTATIVE

By: /s/ Richard E. Clemens                      By: /s/ William Uhrig
    -----------------------------------            -----------------------------
    Richard E. Clemens, President & CEO         Its: Partner

EACH OF THE SELLING STOCKHOLDERS
LISTED ON APPENDIX A HERETO

By       Three Cities Research, Inc.,As Attorney in Fact for each of the Selling
         Stockholders listed on Appendix A hereto

By: /s/ William Uhrig
   ----------------------
Its: Partner
                    AGREEMENTS BY THREE CITIES RESEARCH, INC.
                    -----------------------------------------

         For good and valuable consideration, Three Cities Research, Inc.,
individually for itself and not in any representative capacity, hereby agrees to
the provisions of Sections 7, 8, 12 and 14 of the foregoing Agreement.

         IN WITNESS WHEREOF, the undersigned Three Cities Research, Inc. has
executed this addendum to the forgoing Agreement as of the date and year first
written above.

                                         THREE CITIES RESEARCH, INC.

                                         By: /s/ William Uhrig
                                            -----------------------------------
                                         Its: Partner

                                    10.1 - 8

<PAGE>   9

                                                                      APPENDIX A

Three Cities Fund II LP
Three Cities Offshore II CV
Wynnefield Partners Small Cap Value LP
Allied Capital Corporation
Allied Investment Corporation

Anthony T. Castor, III
Michael H. Bulkin
J. Murfree Butler
Stephen G. Cerri
A.A. Fornataro
Michael S. Levin

Gerald L. Brenneman                   Donald J. Mudric
William H. Carver                     Frank W. Petraglia
Steven B. Chinchi                     Teresa D. Phillips
Vernon E. Collins                     James L. Phillis
Joseph L. Cugini                      William D. Presutti
Webley M. Dias                        Michael A. Santillo
Martin C. Dillner                     Karl T. Schoeffel
M. James Ditallo                      Carl H. Simpson
George A. Douglas                     Blake C. Steele
Audie K. Dunbar                       Richard J. Stock
John A. Fischer                       David D. Struth
Thomas M. Fitzwilliams                Mark E. Sutherland
George R. Goldner                     Mark T. Swain
Richard L. Goldner                    Henry E. Theis
Francis J. Gordon                     Glyn R. Vaughan
Gary D. Hart                          William R. Weber
Thomas F. Hazen                       Edward R. Woods
Marvin T. Knepp                       Lloyd P. Zahn
Harry F. Leonard
William A. Lindner
Frank S. Ludwiczak
John A. Marzula
Miros J. Maszczak
Michael W. McGraw
Melinda S. McKee
James N. McKenna
Mark J. Menego
Robert F. Mikesell
Charles L. Miller
Kenneth H. Miller

                                    10.1 - 9<PAGE>   1
                                                                    Exhibit 10.1

                         THIRD AMENDMENT TO AMENDED AND
                      RESTATED LOAN AND SECURITY AGREEMENT

      THIS THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
(the "Amendment") is made as of this 21st day of August, 2000 by and between
TITAN MOTORCYCLE CO. OF AMERICA, a Nevada corporation ("Borrower"), and WELLS
FARGO CREDIT, INC., a Minnesota corporation ("Lender").

      WHEREAS, Borrower is currently indebted to Lender pursuant to the terms
and conditions of that certain Amended and Restated Loan and Security Agreement
dated as of April 10, 2000 between Borrower and Lender, as amended by First
Amendment to Amended and Restated Loan and Security Agreement dated as of July
10, 2000 and Second Amendment to Amended and Restated Loan and Security
Agreement dated as of August 14, 2000 (the "Loan Agreement"); and

      WHEREAS, Borrower has advised Lender that it expects to have incurred a
$271,000 Net Loss for the June 2000 fiscal month, a $750,000 Net Loss for the
July 2000 fiscal month and a $500,000 Net Loss for the August 2000 fiscal month;

      WHEREAS, Borrower has advised Lender that it intends to reserve from, or
make adjustments to, its June 2000 fiscal month financial statements against
Inventory, affiliate accounts receivable and affiliate motorcycle returns under
the Transamerica Forbearance Agreement, in an amount not to exceed $1,600,000 in
the aggregate; and

      WHEREAS, Borrower has requested an amendment to the financial covenants in
the Loan Agreement consistent with its expected Net Losses, reserves and
adjustments, and Lender is willing to grant such amendment on the terms and
conditions contained herein;

      NOW, THEREFORE, in consideration of the premises, the mutual covenants and
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Borrower and Lender,
intending to be legally bound, agree as follows:

      1. Definitions. Except as otherwise defined herein, all capitalized terms
used herein shall have the meanings ascribed thereto in the Loan Agreement.

      2. Recitals. The recitals set forth above are true and accurate in every
respect.

      3. No Offsets. Borrower acknowledges with respect to the amounts owing to
Lender that, as of the date of execution of this Amendment, Borrower has no
offset, defense or counterclaim with respect thereto, no claim or defense in the
abatement or reduction thereof, or any other claim against Lender or with
respect to any document forming part of the transaction in respect of which the
Prior Loan Agreement was made or forming part of any other transaction under
which Borrower is indebted to Lender. Borrower acknowledges that all interest
imposed under the Prior Loan Agreement and Loan Documents through the date of
execution hereof, and
<PAGE>   2
all fees and other charges that have been collected from or known by Borrower to
have been imposed upon Borrower with respect to the Prior Loan Agreement were
and are agreed to, and were properly computed and collected, and that Lender has
fully performed all obligations that it may have had or now has to Borrower, and
Lender has no obligation to make any additional loan or extension of credit to
or for the benefit of Borrower, except as provided in the Loan Agreement.

      4. Release of Claims. In consideration of Lender's agreements contained
herein, Borrower and its successors and assigns each hereby fully release,
remise and forever discharge Lender and Bank and all of their past and present
officers, directors, agents, employees, servants, partners, shareholders,
attorneys and managers, and all of their respective heirs, personal
representatives, predecessors, successors and assigns, for, from and against any
and all claims, demands, causes of action, controversies, offsets, obligations,
losses, damages, and liabilities of every kind and character whatsoever,
including without limitation any action, omission, misrepresentation or other
basis of liability founded either in tort or contract and the duties arising
thereunder that Borrower, or any of its successors or assigns has had in the
past, or now has, or which may hereafter accrue, whether known or unknown,
whether currently existing or hereafter asserted, relating in any manner to, or
arising from or in connection with, the indebtedness evidenced by the Prior Loan
Agreement, this Agreement or the Loan Documents, any negotiations, loan
administration, exercise of rights and remedies, payment, offset with respect
to, or other matter relating to such indebtedness, any collateral securing
payment and performance of such indebtedness, or any matter preliminary to the
execution and delivery by Borrower and Lender of this Agreement, or any
statement, action, omission or conduct of Lender or Bank or any of their
officers, directors, agents, employees, servants, partners, shareholders,
attorneys and managers relating in any manner to such indebtedness, collateral
or this Agreement; provided, however, that the foregoing release and discharge
shall not apply to the obligations of Lender expressly set forth in this
Amendment or first arising after the date of this Amendment. Borrower
acknowledges and agrees that Lender is not and shall not be obligated in any way
to continue or undertake any loan, financing or other credit arrangement with
Borrower, including without limitation any renewal of the indebtedness evidenced
by the Loan Agreement, beyond the Maturity Date.

      5. Representations and Warranties of Borrower. To induce Lender to enter
into this Amendment and the arrangement contemplated by this Amendment, Borrower
represents and warrants to Lender as follows:

            (a) Borrower has all requisite corporate power and corporate
authority to execute this Amendment and to perform all of its obligations
hereunder, and this Amendment has been duly executed and delivered by Borrower
and constitutes the legal, valid and binding obligations of Borrower,
enforceable against Borrower in accordance with its terms.

            (b) The execution, delivery and performance by Borrower of this
Amendment have been duly authorized by all necessary corporate action and do not
(i) require any authorization, consent or approval by any governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign, or any other Person, including, without limitation, the Subordinated
Creditors, that, if not obtained would have a material adverse effect

                                      -2-
<PAGE>   3
on the Borrower's financial condition, properties or operations; (ii) violate
any provision of any law, rule or regulation or of any order, writ, injunction
or decree presently in effect, having applicability to Borrower, or the articles
of incorporation or by-laws of Borrower; or (iii) result in a breach of or
constitute a default under any indenture or loan or credit agreement or any
other material agreement, lease or instrument to which Borrower is a party or by
which it or its properties may be bound or affected.

            (c) Except as disclosed in the Borrower's May 31, 2000 financial
statements delivered to Lender or otherwise disclosed in writing to Lender, all
of the respective representations and warranties made by Borrower in the Loan
Agreement and Loan Documents remain true, complete and correct in all material
respects as of the date hereof, including, without limitation, the
representations and warranties in Article 5 of the Loan Agreement, except to the
extent of any changes to such representations and warranties previously
disclosed in writing to Lender.

            (d) After the execution of this Amendment, Borrower will be in
compliance in all material respects with all of the covenants of Borrower under
the Loan Agreement and other Loan Documents as of the date of execution of this
Amendment.

            (e) There are no oral agreements, understandings or course of
conduct that would modify, amend, rearrange, vary, diminish or impair the Loan
Agreement or other Loan Documents or the Obligation of Borrower evidenced
thereby or to perform fully the Obligations of Borrower in strict accordance
with the Loan Agreement and other Loan Documents, or which would permit Borrower
to void or avoid its obligations in whole or in part.

No representation or warranty made by Borrower and contained herein or in the
Loan Agreement or other Loan Documents, and no certificate, information or
report furnished or to be furnished by Borrower in connection with the Loan
Agreement or any of the other Loan Documents or any of the transactions
contemplated hereby or thereby, contains or will contain a misstatement of
material fact, or omits or will omit to state a material fact required to be
stated in order to make the statements contained herein or therein not
misleading in the light of the circumstances under which such statements were
made.

      6. Amendment Fee. In consideration of Lender's agreements contained
herein, Borrower hereby agrees to pay Lender an amendment fee of $5,000 that is
deemed fully earned and non-refundable upon execution of this Amendment.
Borrower hereby agrees that the Lender may, but shall not be obligated to,
without further authorization by the Borrower, pay the amendment fee directly as
an advance under the Loan Agreement on the effective date of this Amendment.

      7. Minimum Net Income From Ordinary Operations. Section 6.13 of the Loan
Agreement is hereby deleted in its entirety and the following inserted therefor:

                  Section 6.13 MINIMUM NET INCOME FROM ORDINARY OPERATIONS.
            Borrower's monthly Net Loss for the May 2000 fiscal month shall not
            be more than $31,000; Borrower's monthly

                                      -3-
<PAGE>   4
            Net Loss for the June 2000 fiscal month shall not be more than
            $300,000; provided, however, for Borrower's June 2000 fiscal months
            only, Net Income will be determined prior to reserving from, or
            making adjustments to, Borrower's Inventory, Borrower's affiliate
            accounts receivable and Borrower's affiliate motorcycle returns
            under the Transamerica Forbearance Agreement, which reserves and
            adjustments shall not exceed $1,600,000 in the aggregate; Borrower's
            monthly Net Loss for the July 2000 fiscal month shall not be more
            than $750,000; Borrower's monthly Net Loss for the August 2000
            fiscal month shall not be more than $500,000; and Borrower's monthly
            Net Income for each fiscal month thereafter shall not be less than
            $1.00

      8. Minimum Book Net Worth. Section 6.14 of the Loan Agreement is hereby
deleted in its entirety and the following inserted therefor:

                  Section 6.14 MINIMUM BOOK NET WORTH. Borrower's cumulative
            Book Net Worth as of the end of Borrower's 2000 second fiscal
            quarter, i.e., July 1, 2000, shall not be less than $3,700,000;
            Borrower's cumulative Book Net Worth as of the end of Borrower's
            July 2000 fiscal month shall not be less than $2,950,000; Borrower's
            cumulative Book Net Worth as of the end of Borrower's August 2000
            fiscal month shall not be less than $2,450,000; and as of the end of
            each fiscal month thereafter, Borrower's Book Net Worth must
            increase by at least $1.00 from the prior month end Book Net Worth;
            provided, however, Borrower's Book Net Worth will be determined
            without taking into account the reserves from, and adjustments to,
            Borrower's Inventory, Borrower's affiliate accounts receivable and
            Borrower's affiliate motorcycle returns under the Transamerica
            Forbearance Agreement to be made in the June 2000 fiscal month,
            which reserves and adjustments shall not exceed $1,600,000 in the
            aggregate.

      9. Events of Default. Section 8.1 of the Loan Agreement is hereby amended
to add the following:

                  (x) Lender has not received signed copies of the Consent of
            Subordinated Creditors attached to the Third Amendment to Amended
            and Restated Loan and Security Agreement dated as of August 21, 2000
            (the "Third Amendment") from Advantage Fund II Ltd., Koch Investment
            Group Limited, RCP Inc., Esquire Trade & Finance Inc. and Celeste
            Trust Reg. on or before August 28, 2000, or Lender has not received
            a signed copy of the Consent of Subordinated Creditors attached to
            the

                                      -4-
<PAGE>   5
            Third Amendment from Oxford International, Inc. on or before
            September 4, 2000.

      10. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an
original and all of which counterparts, taken together, shall constitute one and
the same instrument.

      11. Voluntary Agreement. Borrower represents and warrants to Lender that
(i) it has been represented by legal counsel of its choice in regard to the
transaction provided for by this Amendment; (ii) it is fully aware and clearly
understands all of the terms and provisions contained in this Amendment,
including, without limitation, the release of claims in Section 4 above; (iii)
it has voluntarily, with full knowledge and without coercion or duress of any
kind, entered into this Amendment and the documents executed in connection with
this Amendment; (iv) it is not relying on any representations, either written or
oral, express or implied, made to it by Lender other than as set forth in the
Loan Agreement and other Loan Documents and this Amendment; and (v) the
consideration received by Borrower to enter into this Amendment and the
arrangement contemplated by this Amendment has been actual and adequate.

      12. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Arizona, without regard to its conflict
of laws rules.

      13. Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
combined shall constitute one and the same instrument.

      14. Successors and Assigns. This Amendment shall inure to the benefit of
and be binding upon the parties hereto and their respective successors and
permitted assigns.

      15. Transaction Expenses. Borrower agrees to pay any and all reasonable
costs and expenses incurred by Lender in connection with this Amendment,
including, without limitation, reasonable attorneys' fees and disbursements of
counsel to the Lender for the services performed by such counsel in connection
with the preparation of this Amendment and the documents and instruments
incidental hereto. Borrower hereby agrees that the Lender may, at any time or
from time to time in its sole discretion and without further authorization by
the Borrower, pay such costs and expenses directly as an advance under the Loan
Agreement.

      16. Amendment. Except as otherwise amended hereby, all of the terms and
provisions of the Loan Agreement shall remain in full force and effect and shall
apply to each Advance thereunder.

                           [THE REMAINDER OF THIS PAGE
                          IS LEFT INTENTIONALLY BLANK]

                                      -5-
<PAGE>   6
      IN WITNESS WHEREOF, this Amendment is executed as of the date first above
written.

                                    BORROWER:

                                    TITAN MOTORCYCLE CO. OF AMERICA, a Nevada
                                    corporation

                                    By:
                                           ----------------------------------
                                    Name:
                                           ----------------------------------
                                    Title:
                                           ----------------------------------

                                     LENDER:

                                    WELLS FARGO CREDIT, INC., a Minnesota
                                    corporation

                                    By:
                                           ----------------------------------
                                    Name:
                                           ----------------------------------
                                    Title:
                                           ----------------------------------

                                      -6-
<PAGE>   7
                              CONSENT OF GUARANTORS

      The undersigned, the Guarantors under the Guaranties, hereby (a)
acknowledge receipt of a copy of the attached Third Amendment to Amended and
Restated Loan and Security Agreement, (b) consent to the terms and conditions
contained therein, and (c) agree that the covenants, agreements, duties and
obligations of the undersigned, as Guarantors under your respective Guaranties,
shall remain in full force and effect with respect to the Obligations evidenced
by the Loan Agreement, as amended by the attached Third Amendment to Amended and
Restated Loan and Security Agreement.

      Dated as of this ____ day of August, 2000.

                                          ----------------------------------
                                          FRANCIS KEERY

                                          ----------------------------------
                                          BARBARA KEERY

                                          ----------------------------------
                                          PATRICK KEERY
<PAGE>   8
                        CONSENT OF SUBORDINATED CREDITORS

      The undersigned, the Subordinated Creditors under the Subordination
Agreements, hereby (a) acknowledge receipt of a copy of the attached Third
Amendment to Amended and Restated Loan and Security Agreement, (b) consent to
the terms and conditions contained therein, and (c) agree that the covenants,
agreements, duties and obligations of the undersigned, as Subordinated Creditor
under the respective Subordination Agreements, shall remain in full force and
effect with respect to the Obligations evidenced by the Loan Agreement, as
amended by the attached Third Amendment to Amended and Restated Loan and
Security Agreement.

      Dated as of this ____ day of August, 2000.

                                          ADVANTAGE FUND II LTD., a British
                                          Virgin Islands corporation

                                          By:   Genesee International Inc.,
                                                as General Manager

                                                By:
                                                      ----------------------
                                                Name:
                                                      ----------------------
                                                Title:
                                                      ----------------------

                                          KOCH INVESTMENT GROUP LIMITED, a
                                          Delaware corporation

                                          By:
                                                 ---------------------------
                                          Name:
                                                 ---------------------------
                                          Title:
                                                 ---------------------------

                                          OXFORD INTERNATIONAL, INC.

                                          By:
                                                 ---------------------------
                                          Name:
                                                 ---------------------------
                                          Title:
                                                 ---------------------------

                                          ----------------------------------
                                          FRANCIS KEERY

                                          CELESTE TRUST REG., a Liechtenstein
                                          trust

                                          By:
                                                 ---------------------------
                                          Name:
                                                 ---------------------------
<PAGE>   9
                                          Title:
                                                 ---------------------------

                   [SIGNATURES CONTINUED ON FOLLOWING PAGE]
                                          ESQUIRE TRADE & FINANCE INC., a
                                          British Virgin Islands corporation

                                          By:
                                                 ---------------------------
                                          Name:
                                                 ---------------------------
                                          Title:
                                                 ---------------------------

                                          RCP INC., a California corporation

                                          By:
                                                 ---------------------------
                                          Name:
                                                 ---------------------------
                                          Title:
                                                 ---------------------------

                                      -2-

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