Document:

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                                                                    EXHIBIT 10.2

                              MASTER REVOLVING NOTE

Variable Rate-Maturity Date-Optional Advances (Business and Commercial Loans
Only)

<TABLE>
<CAPTION>
    AMOUNT                             NOTE DATE                 MATURITY DATE                    TAX IDENTIFICATION NUMBER
<S>                                    <C>                       <C>                              <C>
    $5,000,000                         September 29, 2000        January 31, 2002                 94-3 142032
</TABLE>

ON THE MATURITY DATE, AS stated above, for value received, the undersigned
promise(s) to pay to the order of Comerica Bank ("Bank"), at any office of the
Bank in the State of Michigan, Five Million Dollars (U.S.) (or that portion of
it advanced by the Bank and not repaid as later provided) with interest until
maturity, whether by acceleration or otherwise, or until Default, as later
defined, at a per annum rate equal to the Bank's prime rate from time to time in
effect per annum, and after that at a rate equal to the rate of interest
otherwise prevailing under this Note plus three percent (3%) per annum (but in
no event in excess of the maximum rate permitted by law). The Bank's "prime
rate" is that annual rate of interest so designated by the Bank and which is
changed by the Bank from time to time. Interest rate changes will be effective
for interest computation purposes as and when the Bank's prime rate changes.
Interest shall be calculated on the basis of a 360-day year for actual number of
days the principal is outstanding. Accrued interest on this Note shall be
payable on the first day of each month commencing December 1, 2000, until the
Maturity Date (set forth above) when all amounts outstanding under this Note
shall be due and payable in full. If the frequency of interest payments is not
otherwise specified, accrued interest on this Note shall be payable monthly on
the first day of each month. If any payment of principal or interest under this
Note shall be payable on a day other than a day on which the Bank is open for
business, this payment shall be extended to the next succeeding business day and
interest shall be payable at the rate specified in this Note during this
extension. A late payment charge equal to five percent (5%) of each late payment
may be charged on any payment not received by the Bank within ten (10) calendar
days after the payment due date, but acceptance of payment of this charge shall
not waive any Default under this Note.

The principal amount payable under this Note shall be the sum of all advances
made by the Bank to or at the request of the undersigned, less principal
payments actually received in cash by the Bank. The books and records of the
Bank shall be the best evidence of the principal amount and the unpaid interest
amount owing at any time under this Note and shall be conclusive absent manifest
error. No interest shall accrue under this Note until the date of the first
advance made by the Bank; after that interest on all advances shall accrue and
be computed on the principal balance outstanding from time to time under this
Note until the same is paid in full. The Bank shall be under no obligation to
make any advances to the undersigned pursuant to this Note during the
continuance of a Default.

This Note and any other indebtedness and liabilities of any kind of the
undersigned (or any of them) to the Bank, and any and all modifications,
renewals or extensions of it, whether joint or several, contingent or absolute,
now existing or later arising, and however evidenced (collectively
"Indebtedness"), are secured by and the Bank is granted a security interest in
all items deposited in any account of any of the undersigned with the Bank and
by all proceeds of these items (cash or otherwise), all account balances of any
of the undersigned from time to time with the Bank, by all property of any of
the undersigned from time to time in the possession of the Bank and by any other
collateral, rights and properties described in each and every deed of trust,
mortgage, security agreement, pledge, assignment and other security or
collateral agreement which has been, or will at any time(s) later be, executed
by any (or all) of the undersigned to or for the benefit of the Bank
(collectively "Collateral"). Notwithstanding the above, (i) to the extent that
any portion of the Indebtedness IS a consumer loan, that portion shall not be
secured by any deed of trust, mortgage on or other security interest in any of
the undersigned's principal dwelling or in any of the undersigned's real
property which is not a purchase money security interest as to that portion,
unless expressly provided to the contrary in another place, or (ii) if the
undersigned (or any of them) has(have) given or give(s) Bank a deed of trust or
mortgage covering California real property, that deed of trust or mortgage shall
not secure this Note or any other indebtedness of the undersigned (or any of
them), unless expressly provided to the contrary in another place.

If the undersigned (or any of them) or any guarantor under a guaranty of all or
part of the Indebtedness ("guarantor") (a) fail(s) to pay any of the
Indebtedness when due, by maturity, acceleration or otherwise, or fail(s) to pay
any Indebtedness owing on a demand basis upon demand; or (b) fail(s) to comply
with any of the terms or provisions of any agreement between the undersigned (or
any of them) or any such

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guarantor and the Bank; or (c) become(s) insolvent or the subject of a voluntary
or involuntary proceeding in bankruptcy, or a reorganization, arrangement or
creditor composition proceeding, (if a business entity) cease(s) doing business
as a going concern, (if a natural person) die(s) or become(s) incompetent, (if a
partnership) dissolve(s) or any general partner of it dies, becomes incompetent
or becomes the subject of a bankruptcy proceeding or (if a corporation or a
limited liability company) is the subject of a dissolution, merger or
consolidation; or (d) if any warranty or representation made by any of the
undersigned or any guarantor in connection with this Note or any of the
Indebtedness shall be discovered to be untrue or incomplete; or (e) if there is
any termination, notice of termination, or breach of any guaranty, pledge,
collateral assignment or subordination agreement relating to all or any part of
the Indebtedness; or (f) if there is any failure (beyond any applicable notice,
grace/or cure period) by any of the undersigned or any guarantor to pay when due
any of its indebtedness (other than to the Bank) or in the observance or
performance of any term, covenant or condition in any document evidencing,
securing or relating to such indebtedness; or (g) if the Bank deems itself
insecure believing that the prospect of payment of this Note or any of the
Indebtedness is impaired or shall fear deterioration, removal or waste of any of
the Collateral; or (h) if there is filed or issued a levy or writ of attachment
or garnishment or other like judicial process upon the undersigned (or any of
them) or any guarantor or any of the Collateral, including without limit, any
accounts of the undersigned (or any of them) or any guarantor with the Bank,
then the Bank, upon the occurrence of any of these events (each a "Default"),
may at its option and without prior notice to the undersigned (or any of them),
declare any or all of the Indebtedness to be immediately due and payable
(notwithstanding any provisions contained in the evidence of it to the
contrary), sell or liquidate all or any portion of the Collateral, set off
against the Indebtedness any amounts owing by the Bank to the undersigned (or
any of them), charge interest at the default rate provided in the document
evidencing the relevant Indebtedness and exercise any one or more of the rights
and remedies granted to the Bank by any agreement with the undersigned (or any
of them) or given to it under applicable law. All payments under this Note shall
be in immediately available United States funds, without setoff or counterclaim.

If this Note is signed by two or more parties (whether by all as makers or by
one or more as an accommodation party or otherwise), the obligations and
undertakings under this Note shall be that of all and any two or more jointly
and also of each severally. This Note shall bind the undersigned, and the
undersigned's respective heirs, personal representatives, successors and
assigns. The undersigned waive(s) presentment, demand, protest, notice of
dishonor, notice of demand or intent to demand, notice of acceleration or intent
to accelerate, and all other notices and agree(s) that no extension or
indulgence to the undersigned (or any of them) or release, substitution or
nonenforcement of any security, or release or substitution of any of the
undersigned, any guarantor or any other party, whether with or without notice,
shall affect the obligations of any of the undersigned. The undersigned waive(s)
all defenses or right to discharge available under Section 3-605 of the Michigan
Uniform Commercial Code and waive(s) all other suretyship defenses or right to
discharge. The undersigned agree(s) that the Bank has the right to sell, assign,
or grant participations or any interest in, any or all of the Indebtedness, and
that, in connection with this right, but without limiting its ability to make
other disclosures to the full extent allowable, the Bank may disclose all
documents and information which the Bank now or later has relating to the
undersigned or the Indebtedness. The undersigned agree(s) that the Bank may
provide information relating to this Note or relating to the undersigned to the
Bank's parent, affiliates, subsidiaries and service providers.

The undersigned agree(s) to reimburse the holder or owner of this Note upon
demand for any and all costs and expenses (including without limit, court costs,
legal expenses and reasonable attorney fees, whether inside or outside counsel
is used, whether or not suit is instituted and, if suit is instituted, whether
at the trial court level, appellate level, in a bankruptcy, probate or
administrative proceeding or otherwise) incurred in collecting or attempting to
collect this Note or incurred in any other matter or proceeding relating to this
Note.

The undersigned acknowledge(s) and agree(s) that there are no contrary
agreements, oral or written, establishing a term of this Note and agree(s) that
the terms and conditions of this Note may not be amended, waived or modified
except in a writing signed by an officer of the Bank expressly stating that the
writing constitutes an amendment, waiver or modification of the terms of this
Note. As used in this Note, the word "undersigned" means, individually and
collectively, each maker, accommodation party, indorser and other party signing
this Note in a similar capacity. If any provision of this Note is unenforceable
in whole or part for any reason, the remaining provisions shall continue to be
effective.

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THIS NOTE IS MADE IN THE STATE OF MICHIGAN AND SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF MICHIGAN, WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLE.

THE MAXIMUM INTEREST RATE SHALL NOT EXCEED 25% PER ANNUM, OR THE HIGHEST
APPLICABLE USURY CEILING, WHICHEVER IS LESS.

THE UNDERSIGNED AND THE BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A
CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR
HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY
AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY
IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN
ANY WAY RELATED TO, THIS NOTE OR THE INDEBTEDNESS.

PRESTOLITE ELECTRIC INCORPORATED          By:  /s/ Kenneth C. Cornelius
--------------------------------               -------------------------------
    OBLIGOR NAME TYPED/PRINTED                     SIGNATURE OF

                                          By:  /s/ Dennis P. Chelminski
                                               ------------------------------
                                                   SIGNATURE OF

2100 Commonwealth Boulevard, Suite 300      Ann Arbor      Michigan     48105
--------------------------------------------------------------------------------
STREET ADDRESS                              CITY           STATE        ZIP CODE

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                                                                    EXHIBIT 10.3
COMERICA BANK

                               September 29, 2000

Prestolite Electric Incorporated
2100 Commonwealth Boulevard
Suite 300
Ann Arbor, Michigan 48105

Ladies and Gentlemen:

          This letter, when signed by Prestolite Electric Incorporated
("Company"), will constitute our agreement concerning the issuance by Comerica
Bank ("Bank") of standby letters of credit for the account of Company.

          The Bank may issue, from time to time until January 31, 2002, standby
letters of credit for the account of Company in an aggregate face amount not to
exceed $2,000,000; provided. however, that the sum of the aggregate amount of
advances outstanding under the $5,000,000 Master Revolving Note dated as of the
date hereof from Company as maker to Bank as payee ("Note") plus the aggregate
face amount of all outstanding letters of credit issued pursuant to this letter
plus the aggregate face amount of all outstanding letters of credit issued for
the account of Company pursuant to the $5,000,000 letter agreement dated as of
date hereof between Company and Bank shall not exceed the lesser of $7,000,000
or the advance formula as determined in the Advance Formula Agreement dated as
of the date hereof between Company and Bank; provided further, that no letter of
credit shall, by its terms, have an expiration date which extends beyond the
earlier to occur of one year after issuance or January 31, 2002 and provided
further, that in the event any letter of credit has an expiration date later
than January 31, 2002, Company shall deliver to Bank on demand cash collateral
in an amount equal to the maximum undrawn amount of such letter of credit. The
issuance of any letters of credit shall be subject to the terms and conditions
of any letter of credit applications and agreements executed and delivered by
the Company to the Bank with respect thereto. The Company shall pay to the Bank
annually in advance a fee of two percent (2%) per annum of the face amount of
each such letter of credit. No letter of credit shall he issued during the
continuance of a Default under the Note.

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Prestolite Electric Incorporated
September 29, 2000
Page 2

          If the foregoing clearly sets forth our understanding regarding these
matters, please sign this letter were indicated and return it to me.

                                    Very truly yours,

                                    /s/ Peggy A. Cummins
                                    --------------------

                                    Peggy A. Cummins
                                    First Vice President

Acknowledged and agreed to as of the date set
forth above:
PRESTOLITE ELECTRIC INCORPORATED

By:  /s/  Kenneth C. Cornelius
     -------------------------

Its:
     -------------------------

By:  /s/ Dennis P. Chelminski
     -------------------------

Its:
     -------------------------

                            REAFFIRMATION OF GUARANTY

          The undersigned reaffirms and ratifies all of its obligations to the
Bank under or in respect of the Guaranty dated October 25, 1994, executed and
delivered by the undersigned to the Bank.

                                    PRESTOLITE ELECTRIC HOLDING, INC.

                                    By:  /s/  Kenneth C. Cornelius
                                         -------------------------

                                    Its:
                                         -------------------------

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