Document:

<PAGE>   1
                                                                    Exhibit 10.3

                         SECOND AMENDMENT TO AMENDED AND
                      RESTATED LOAN AND SECURITY AGREEMENT

         THIS SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT (the "Amendment") is made as of this 14th 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 (the "Loan Agreement"); and

         WHEREAS, Borrower has failed to timely deliver the June 2000 fiscal
month-end financial statements to Lender and has advised Lender that it expects
to have incurred a $200,000 Net Loss for the June 2000 fiscal month and a
$750,000 Net Loss for the July 2000 fiscal month;

         WHEREAS, Borrower has requested an extension of time to deliver its
June 2000 fiscal month-end financial statements to Lender and an amendment to
the financial covenants in the Loan Agreement consistent with its expected Net
Losses and Lender is willing to grant such extension of time and 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 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.
<PAGE>   2
         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 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.

                                      -2-
<PAGE>   3
                  (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 $2,500 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. Consent to Issuance of Convertible Debentures. Subject to the terms
and conditions of the Intercreditor Agreement dated August 14, 2000 among
Borrower, Esquire Trade & Finance Inc., Celeste Trust Reg. and Lender (the
"Intercreditor Agreement"), Lender hereby consents to the issuance of the
Convertible Debentures and the grant of a security interest in and to all of
Borrower's assets in favor of the holders of the Convertible Debentures. This
consent is effective only in this specific instance and only for the specific
purpose for which given and is expressly conditioned upon strict compliance with
the terms of the Intercreditor Agreement. This consent does not constitute a
waiver of any of the covenants and agreements of Borrower contained in the
Credit Agreement or Loan Documents with respect to any other transaction.

         8. Consent to Transamerica Forbearance Agreement. Lender hereby
consents to the Transamerica Forbearance Agreement, including, without
limitation, the grant to Transamerica Commercial Finance Corporation of a first
lien Security Interest in the items of finished goods

                                      -3-
<PAGE>   4
Inventory specifically listed on Exhibit A to the Transamerica Forbearance
Agreement (without any subsequent modifications) and the proceeds therefrom.
This consent is effective only in this specific instance and only for the
specific purpose and does not constitute Lender's consent to any amendments,
modifications or supplements to, or replacements of, the Transamerica
Forbearance Agreement. This consent does not constitute a waiver of any of the
covenants and agreements of Borrower contained in the Credit Agreement or Loan
Documents with respect to any other transaction.

         9. Loan Agreement Definitions. Section 1.1 of the Loan Agreement is
hereby amended to add the following definitions in their proper alphabetical
order:

                           "Convertible Debentures" means $750,000 of 12%
                  Convertible Debentures of the Borrower issued pursuant to that
                  certain Securities Purchase Agreement dated as of August 14,
                  2000 between Borrower and Esquire Trade & Finance Inc. and
                  Celeste Trust Reg., including the grant of a Security Interest
                  in all assets and properties of Borrower in favor of the
                  holders of the Convertible Debentures, subordinate to the
                  Security Interest of Lender.

                           "Transamerica Forbearance Agreement" means that
                  certain Forbearance Agreement and Release dated August 1, 2000
                  between Borrower and Transamerica Commercial Finance
                  Corporation and specifically excludes any amendments,
                  modifications or supplements thereto, or replacements thereof
                  without the prior written consent of Lender.

         10. Reporting Requirements. Section 6.1(b) of the Loan Agreement is
hereby deleted in its entirety and the following inserted therefor:

                           (a) as soon as available and in any event on or
                  before April 21, 2000 with respect to January 2000, February
                  2000 and March 2000 fiscal month-end reporting information,
                  August 22, 2000 with respect to June 2000 fiscal month-end
                  reporting information, and on or before thirty (30) days after
                  the end of each month thereafter, a balance sheet and
                  statements of income and retained earnings of the Borrower as
                  of the end of and for such month and for the year to date
                  period then ended, in reasonable detail and stating in
                  comparative form the figures for the corresponding date and
                  periods in the previous year, all prepared in accordance with
                  GAAP, and an aging of the Borrower's accounts payable; and
                  accompanied by a certificate of the Borrower's chief financial
                  officer, substantially in the form of Exhibit C hereto stating
                  (i) that such financial statements have been prepared in
                  accordance with GAAP, (ii) whether or not such officer has
                  knowledge of the occurrence of any Default or Event of Default
                  hereunder not theretofore reported and remedied and, if so,
                  stating

                                      -4-
<PAGE>   5
                  in reasonable detail the facts with respect thereto, and (iii)
                  all relevant facts in reasonable detail to evidence, and the
                  computations as to, whether or not the Borrower is in
                  compliance with the requirements set forth in Sections 6.13,
                  6.14 and 7.10;

         11. 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 Net Loss for the June 2000 fiscal month shall not be
                  more than $200,000; Borrower's monthly Net Loss for the July
                  2000 fiscal month shall not be more than $750,000; and
                  Borrower's monthly Net Loss for the August 2000 fiscal month
                  shall not be more than $500,000; provided, however, for
                  Borrower's June, July and August 2000 fiscal months only, Net
                  Income will be determined prior to reserving from, or making
                  adjustments to, Borrower's finished goods Inventory and raw
                  materials Inventory and Borrower's affiliate accounts
                  receivable, which reserves and adjustments shall not exceed
                  $750,000 in the aggregate.

         12. 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 $3,800,000 before reserving from, or making adjustments
                  to, Borrower's finished goods Inventory and raw materials
                  Inventory in the June 2000 fiscal month (but not to exceed
                  $750,000 in the aggregate); Borrower's cumulative Book Net
                  Worth as of the end of Borrower's July 2000 fiscal month shall
                  not be less than $3,050,000; and Borrower's cumulative Book
                  Net Worth as of the end of Borrower's August 2000 fiscal month
                  shall not be less than $2,550,000; provided, however, for
                  Borrower's June, July and August 2000 fiscal months only, Book
                  Net Worth will be determined prior to reserving from, or
                  making adjustments to, Borrower's finished goods Inventory and
                  raw materials Inventory and Borrower's affiliate accounts
                  receivable, which reserves and adjustments shall not exceed
                  $750,000 in the aggregate.

         13. Indebtedness. Section 7.2 of the Loan Agreement is hereby deleted
in its entirety and the following inserted therefor:

                                      -5-
<PAGE>   6
                  Section 7.2 INDEBTEDNESS. The Borrower will not incur, create,
                  assume or permit to exist any indebtedness or liability on
                  account of deposits or advances or any indebtedness for
                  borrowed money or letters of credit issued on the Borrower's
                  behalf, or any other indebtedness or liability evidenced by
                  notes, bonds, debentures or similar obligations, except:

                                    (a) indebtedness arising hereunder;

                                    (b) indebtedness of the Borrower in
                  existence on the date hereof and listed in Schedule 7.2
                  hereto;

                                    (c) indebtedness relating to liens permitted
                  in accordance with Section 7.1;

                                    (d) subordinated indebtedness related to the
                  Convertible Debentures, but in no event more than $750,000 in
                  principal amount; and

                                    (e) indebtedness related to the Transamerica
                  Forbearance Agreement, but in no event more than $1,262,091.75
                  in principal amount.

         14. Events of Default. (a) Section 8.1(u) of the Loan Agreement is
hereby deleted and the following inserted therefor:

                           (u) the Capital Infusion has not occurred on or
                  before August 14, 2000; or

and (b) Section 8.1 of the Loan Agreement is hereby amended to add the
following:

                           (w) Lender has not received signed copies of the
                  Consent of Subordinated Creditors attached to the Second
                  Amendment from Advantage Fund II Ltd., Koch Investment Group
                  Limited, RCP Inc., Esquire Trade & Finance Inc. or Celeste
                  Trust Reg. on or before August 21, 2000, or Lender has not
                  received a signed copy of the Consent of Subordinated
                  Creditors attached to the Second Amendment from Oxford
                  International, Inc. on or before August 28, 2000.

         15. 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.

         16. 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

                                      -6-
<PAGE>   7
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.

         17. 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.

         18. 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.

         19. 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.

         20. 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.

         21. 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]

                                      -7-
<PAGE>   8
         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:
                                ----------------------------------------------

                                      -8-
<PAGE>   9
                              CONSENT OF GUARANTORS

         The undersigned, the Guarantors under the Guaranties, hereby (a)
acknowledge receipt of a copy of the attached Second 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 Second Amendment to Amended
and Restated Loan and Security Agreement.

         Dated as of this ____ day of August, 2000.

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

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

                                          --------------------------------------
                                           PATRICK KEERY
<PAGE>   10
                        CONSENT OF SUBORDINATED CREDITORS

         The undersigned, the Subordinated Creditors under the Subordination
Agreements, hereby (a) acknowledge receipt of a copy of the attached Second
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 Second 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:
                                   -------------------------------------------
                               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:
                                     -----------------------------------------
                               Title:
                                      ----------------------------------------
<PAGE>   11
                    [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-<PAGE>   1
                                                                Exhibit 10.4
                          CONSENT AND WAIVER AGREEMENT

         THIS CONSENT AND WAIVER AGREEMENT, dated as of August 11, 2000 (this
"Agreement"), is by and among TITAN MOTORCYCLE CO. OF AMERICA, a Nevada
corporation, with headquarters located at 2222 West Peoria Avenue, Phoenix,
Arizona 85029 (the "Company"), and ADVANTAGE FUND II LTD., a British Virgin
Islands corporation ("Advantage"), and KOCH INVESTMENT GROUP LIMITED, a Delaware
corporation ("Koch" and, collectively with Advantage, the "A and B Investors").

                              W I T N E S S E T H:

         WHEREAS, the A and B Investors purchased shares of Series A Convertible
Preferred Stock, $.001 par value (the "Series A Stock"), of the Company and
acquired warrants (the "Series A Warrants") to purchase shares of Common Stock,
$.001 par value ("Common Stock"), of the Company pursuant to separate
Subscription Agreements, each dated as of September 15, 1999 (the "Series A
Subscription Agreements"), between the Company and each A and B Investor;

         WHEREAS, the A and B Investors purchased shares of Series B Convertible
Preferred Stock, $.001 par value (the "Series B Stock"), of the Company and
acquired warrants (the "Series B Warrants") to purchase shares of Common Stock
pursuant to separate Subscription Agreements, each dated as of March 7, 2000
(the "Series B Subscription Agreements", and together with the Series A
Subscription Agreements, the "Subscription Agreements"), between the Company and
each A and B Investor (capitalized terms used herein without definition shall
have the meanings given them in the Subscription Agreements);

         WHEREAS, the A and B Investors and the Company are parties to (i) the
Warrant Amendment Agreement, dated as of May 24, 2000 (the "Warrant Amendment
Agreement"), (ii) the Consent to Amendments to Series A Convertible Preferred
Stock and Series B Convertible Preferred Stock, dated June 1, 2000 (the "First
Consent") and (iii) the Consent and Waiver, dated June 20, 2000 (the "Second
Consent");

         WHEREAS, pursuant to the Second Consent, the A and B Investors received
Additional Warrants (as such term is defined in the Second Consent) (the Series
A Warrants, the Series B Warrants and the Additional Warrants are hereinafter
collectively referred to as the "Investor Warrants");

         WHEREAS, the Company proposes to sell to Esquire Trade and Finance Inc.
and Celeste Trust Reg. (collectively, the "Debenture Holders") an aggregate of
$750,000 principal amount of convertible debentures issued by the Company (the
"Debentures") together with certain warrants (the "Debenture Holder Warrants")
to purchase Common Stock and, in connection therewith, to amend certain terms
and provisions of the Company's Series C Convertible Preferred Stock, $.001 par
value (the "Series C Stock"), held by the Debenture Holders (such transaction is
referred to herein as the "Offering");

<PAGE>   2

         WHEREAS, pursuant to the Subscription Agreements, the Company is
restricted from issuing new securities in certain instances without the consent
of the A and B Investors, and the A and B Investors are entitled to be notified
of the Offering and to exercise their preemptive rights to purchase the
securities offered thereby;

         WHEREAS, pursuant to the Investor Warrants, the A and B Investors have
certain anti-dilution adjustment rights in the event of certain issuances of
securities by the Company; and

         WHEREAS, in consideration for obtaining the consents and waivers of the
A and B Investors provided herein in order to facilitate the Offering, the
Company has agreed to amend certain provisions of the Subscription Agreements
and the respective Amended and Restated Certificates of Designations for the
Series A Stock and the Series B Stock (the "Certificates of Designations") as
set forth below;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

                  1. CONSENTS AND WAIVERS

                  (a) OFFERING. Each of the A and B Investors hereby consents
to: (i) the issuance of the Debentures in accordance with, and the terms and
conditions of, the Securities Purchase Agreement, dated as of August 11, 2000,
by and among the Company and the Debenture Holders substantially in the form
attached as EXHIBIT A hereto, (ii) the terms and conditions of the Registration
Rights Agreement, dated as of August 11, 2000, by and among the Company and the
Debenture Holders substantially in the form attached as EXHIBIT B hereto, (iii)
the terms and conditions of the Debenture Holders Warrants substantially in the
form attached as EXHIBIT C hereto and (iv) the terms and provisions of the First
Amended and Restated Certificate of Designations of the Series C Stock
substantially in the form attached as EXHIBIT D hereto. Each of the A and B
Investors hereby waives all restrictions relating to the Offering under Section
4(i) of each of the Subscription Agreements.

                  (b) NOTIFICATION AND PREEMPTIVE RIGHTS. Each of the A and B
Investors hereby waives all of its notification and preemptive rights under
Section 4(i) of each of the Subscription Agreements to purchase Debentures or
Debenture Holder Warrants being offered by the Company in the Offering.

                  (c) ANTI-DILUTION ADJUSTMENTS. Each of the A and B Investors
hereby waives any and all rights to anti-dilution adjustments resulting from the
Offering under Section 6 of each of the Series A Warrants and the Series B
Warrants.

                  (d) OTHER TRANSACTIONS. Notwithstanding the foregoing
provisions of this Section 1, the consents and waivers given pursuant to this
Section 1 apply only to the Offering and do not limit or effect the A and B
Investors' rights with respect to any other transaction.

                                      -2-
<PAGE>   3

                  (e) EFFECTIVENESS. The consents and waivers given in this
Section 1 shall have no effect and shall be deemed null and void if the Company
fails to timely comply with its obligations under Sections 3 and 4.

                  2. AMENDMENT OF SUBSCRIPTION AGREEMENTS

                  (a) Section 4(j) of each of the Series A Subscription
Agreements is hereby amended in its entirety to read as follows:

                           (j) CERTAIN SELLING RESTRICTIONS. So long as the
                  Company is in compliance in all material respects with its
                  obligations to the Buyer under this Agreement, the Certificate
                  of Designations, the Warrants and the Registration Rights
                  Agreement, during the 10 consecutive Trading Days (as defined
                  in the Certificate of Designations) immediately preceding the
                  Initial Reset Date (as defined in the Certificate of
                  Designations), the Second Reset Date (as defined in the
                  Certificate of Designations), and each Bimonthly Reset Date
                  thereafter (as defined in the Certificate of Designations),
                  the Buyer agrees on its behalf and on behalf of its Affiliates
                  (as defined in the Certificate of Designations) that it will
                  not (1) sell any shares of the Common Stock on Nasdaq or any
                  other market where the Common Stock is then listed for trading
                  unless such sale is made at or above 130% of the Fixed
                  Conversation Price (as defined in the Certificate of
                  Designations) or (2) engage in any short sales or other
                  hedging transactions relating to the Common Stock.

                  (b) Section 4(j) of each of the Series B Subscription
Agreements is hereby amended in its entirety to read as follows:

                           (j) CERTAIN SELLING RESTRICTIONS. So long as the
                  Company is in compliance in all material respects with its
                  obligations to the Buyer under this Agreement, the Certificate
                  of Designations, the Warrants and the Registration Rights
                  Agreement, during the 10 consecutive Trading Days (as defined
                  in the Certificate of Designations) immediately preceding the
                  Initial Reset Date (as defined in the Certificate of
                  Designations) and each Quarterly Reset Date thereafter (as
                  defined in the Certificate of Designations), the Buyer agrees
                  on its behalf and on behalf of its Affiliates (as defined in
                  the Certificate of Designations) that it will not (1) sell any
                  shares of the Common Stock on Nasdaq or any other market where
                  the Common Stock is then listed for trading unless such sale
                  is made at or above 130% of the Fixed Conversation Price (as
                  defined in the Certificate of Designations) or (2) engage in
                  any short sales or other hedging transactions relating to the
                  Common Stock.

                  3. AMENDMENT AND RESTATEMENT OF CERTIFICATES OF DESIGNATIONS

                  The Amended and Restated Certificate of Designations for each
of the Series A Stock and the Series B Stock shall be further amended and
restated as set forth in EXHIBIT E and

                                      -3-
<PAGE>   4

EXHIBIT F attached hereto, respectively (the "New Certificates"). The Company
shall file the New Certificates with the Secretary of State of the State of
Nevada within one business day after the initial closing of the Offering and
shall provide written evidence thereof to each of the A and B Investors. Within
one business day after the initial closing of the Offering, the Company shall
deliver a legal opinion of Nevada counsel addressed to each of the A and B
Investors, in the form previously provided to the A and B Investors, which
opinion shall state that (i) the outstanding shares of each of the Series A
Stock and Series B Stock, as amended by the New Certificates, are duly
authorized, validly issued, fully paid and nonassessable and (ii) the provisions
of Section 4 of the New Certificates are valid and enforceable in accordance
with their terms. Time is of the essence with respect to the Company's
compliance with its obligations under this Section 3.

                  4. REPRESENTATIONS AND WARRANTIES

                  The Company represents and warrants to, and covenants and
agrees with, each A and B Investor that:

                  (a) AGREEMENT. This Agreement has been duly and validly
authorized by the Company, this Agreement has been duly executed and delivered
on behalf of the Company, and this Agreement is, the Subscription Agreements as
amended hereby are, and the New Certificates when filed will be, valid and
binding obligations of the Company enforceable in accordance with their
respective terms, subject to general principles of equity and to bankruptcy,
insolvency, moratorium and other similar laws affecting the enforcement of
creditors' rights generally and limits upon rights to indemnity;

                  (b) NON-CONTRAVENTION. The execution and delivery of this
Agreement by the Company and the amendment of the Subscription Agreements and
the Certificates of Designations as contemplated hereby and completion of the
other transactions contemplated hereby do not and will not conflict with or
result in a breach by the Company of any of the terms or provisions of, or
constitute a default or require the consent of any party under the Articles of
Incorporation or By-laws of the Company, or any indenture, mortgage, deed of
trust or other agreement or instrument to which the Company is a party or by
which it or any of its properties or assets are bound or any applicable law,
rule or regulation or any applicable decree, judgment or order of any court,
United States federal or state regulatory body, administrative agency or other
governmental body having jurisdiction over the Company or any of its properties
or assets;

                  (c) REGISTRATION STATEMENTS; STOCKHOLDER APPROVAL. After
giving effect to the Offering, the filing of the New Certificates, the filing of
a Current Report on Form 8-K with the SEC as described below and the completion
of the other transactions contemplated hereby, (i) the respective Registration
Statements filed by the Company with the SEC registering the resale by the A and
B Investors of the Common Stock issuable upon conversion of the Series A Stock
and the Series B Stock and upon exercise of the Series A Warrants and the Series
B Warrants will remain available for use by the A and B Investors as selling
stockholders named therein, and the Company has no intent or reason to suspend
the availability of such Registration Statements, and (ii) the Stockholder
Approvals (as defined in the New Certificates) obtained at the Company's Annual
Meeting of Stockholders held on July 26, 2000 will remain effective in
permanently exempting the Company and the A and B Investors from the
restrictions contained in the Stockholder Approval Rule on issuing Common Stock
to the A and B Investors. Within

                                      -4-
<PAGE>   5

one business day after the initial closing of the Offering, the Company shall
file a Current Report on Form 8-K with the SEC describing the material terms of
the Offering and the transactions contemplated by this Agreement; and

                  (d) CONSULTATION. The Company has consulted with its outside
counsel with respect to the representations and agreements made by the Company
in this Agreement.

                  5. CONFIRMATION OF AGREEMENTS; ENTIRE AGREEMENT

                  Except as specifically consented to or waived in this
Agreement, the A and B Investors will not be deemed to have consented to, waived
or amended any other rights or provisions of any other agreement or document.
Except as amended by this Agreement, the terms and provisions of the
Subscription Agreements, the Certificates of Designations, the Investor
Warrants, the Warrant Amendment Agreement, the First Consent, the Second
Consent, the Transfer Agent Agreements and the several Registration Rights
Agreements relating thereto (collectively, the "Existing Agreements") remain in
full force and effect. All references in the Existing Agreements to the
Subscription Agreements and the Certificates of Designations shall hereafter, in
the case of the Subscription Agreements, and upon filing with the Secretary of
State of the State of Nevada, in the case of the Certificates of Designations,
be deemed to be references to the Subscription Agreements and the Certificates
of Designations as amended hereby. This Agreement sets forth the entire
agreement between the parties with respect to the subject matter hereof.

                  6. MISCELLANEOUS

                  (a) GOVERNING LAW. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of Arizona.

                  (b) COUNTERPARTS. This Agreement may be executed in
counterparts and by the parties hereto on separate counterparts, all of which
together shall constitute one and the same instrument. A telephone line
facsimile copy of this Agreement bearing a signature on behalf of a party hereto
shall be legal and binding on such party.

                  (c) HEADINGS, ETC. The headings, captions and footers of this
Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement.

                  (d) SEVERABILITY. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement or the validity or enforceability of this Agreement
in any other jurisdiction.

                  (e) AMENDMENTS. No amendment, modification, waiver, discharge
or termination of any provision of this Agreement nor consent to any departure
by the A and B Investors or the Company therefrom shall in any event be
effective unless the same shall be in writing and signed by the party to be
charged with enforcement, and then shall be effective only

                                      -5-
<PAGE>   6

in the specific instance and for the purpose for which given. No course of
dealing between the parties hereto shall operate as an amendment of this
Agreement.

                  (f) WAIVERS. Failure of any party to exercise any right or
remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, or any course of dealings between the parties, shall not
operate as a waiver thereof or an amendment hereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or exercise of any other right or power.

                  (g) NOTICES. Any notices required or permitted to be given
under the terms of this Agreement shall be delivered in accordance with the
notice provisions of the Subscription Agreements.

                  (h) EXPENSES. The Company shall pay or reimburse the A and B
Investors for all reasonable expenses (including, without limitation, legal fees
and expenses of counsel to the A and B Investors) incurred by the A and B
Investors in connection with this Agreement, the Offering and the other
transactions contemplated hereby. The Company hereby confirms its obligation to
pay all reasonable legal and other expenses of the A and B Investors in
accordance with the terms of each of the Existing Agreements. In the event any
dispute, claim or litigation shall arise between the Company, on the one hand,
and the A and B Investors, on the other hand, in connection with this Agreement
or the transactions contemplated hereby, all costs and expenses, including
reasonable attorneys' fees, of the prevailing party shall be promptly paid by
the other party to such dispute, claim or litigation.

                  (i) SURVIVAL. The respective representations, warranties,
covenants and agreements of each A and B Investor and the Company contained in
this Agreement or made by or on behalf of them, respectively, pursuant to this
Agreement shall survive the completion of the transactions contemplated hereby
and shall remain in full force and effect regardless of any investigation made
by or on behalf of them or any person controlling or advising any of them.

                  (j) FURTHER ASSURANCES. Each party to this Agreement will
perform any and all acts and execute any and all documents as may be necessary
and proper under the circumstances in order to accomplish the intents and
purposes of this Agreement and to carry out its provisions.

                  (k) CONSTRUCTION. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any party.

                                      -6-
<PAGE>   7

         IN WITNESS WHEREOF, this Consent and Waiver Agreement has been duly
executed by the A and B Investors and the Company by their respective officers
thereunto duly authorized as of the date first set forth above.

                                       ADVANTAGE FUND II LTD.

                                       By:  Genesee International, Inc.,
                                            as General Manager

                                       By:  __________________________________
                                                    Donald R. Morken
                                                       President

                                       KOCH INVESTMENT GROUP LIMITED

                                       By:  __________________________________
                                            Name:
                                            Title:

                                       TITAN MOTORCYCLE CO. OF AMERICA

                                       By:  ___________________________________
                                            Name:
                                            Title:

                                      -7-
<PAGE>   8

                                    EXHIBIT A

                          SECURITIES PURCHASE AGREEMENT

                                      -8-
<PAGE>   9

                                    EXHIBIT B

                          REGISTRATION RIGHTS AGREEMENT

                                      -9-
<PAGE>   10

                                    EXHIBIT C

                                    WARRANTS

                                      -10-
<PAGE>   11

                                    EXHIBIT D

                           FIRST AMENDED AND RESTATED
                         CERTIFICATE OF DESIGNATIONS OF
                              SERIES C CONVERTIBLE
                                 PREFERRED STOCK

                                      -11-
<PAGE>   12

                                    EXHIBIT E

                           SECOND AMENDED AND RESTATED
                      CERTIFICATE OF DESIGNATIONS OF SERIES
                          A CONVERTIBLE PREFERRED STOCK

                                      -12-
<PAGE>   13

                                    EXHIBIT F

                           SECOND AMENDED AND RESTATED
                      CERTIFICATE OF DESIGNATIONS OF SERIES
                          B CONVERTIBLE PREFERRED STOCK

                                      -13-

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