Document:

<PAGE>

                                                                   Exhibit 10.10

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

SALE OR OTHER TRANSFER OF THIS SECURITY OR THE SHARES OF COMMON STOCK ISSUABLE
UPON EXERCISE OF THIS SECURITY IS FURTHER RESTRICTED FOR UP TO 180 DAYS
FOLLOWING AN INITIAL PUBLIC OFFERING OF SECURITIES OF THE COMPANY.

Void After 5:00 p.m. Vista, California time on December 20, 2005

                               WARRANT TO PURCHASE
                             SHARES OF COMMON STOCK
                                       OF
                       REDLINE PERFORMANCE PRODUCTS, INC.

Warrant No. AD-16                                                Shares:  29,767

         THIS CERTIFIES that, subject to the terms and conditions herein set
forth, Gunn Allen Financial ("HOLDER") or registered assigns, is entitled to
purchase from REDLINE PERFORMANCE PRODUCTS, INC., a Minnesota corporation (the
"COMPANY"), at any time on or before December 20, 2005 (the "AGENT'S WARRANT"),
Twenty-Nine Thousand Seven Hundred Sixty-Seven (29,767) fully paid and
nonassessable shares of $0.01 par value per share common stock of the Company
(such class of shares being referred to as the "COMMON STOCK," and such shares
of Common Stock which may be acquired upon exercise of this Agent's Warrant
being referred to as the "WARRANT SHARES"). This Agent's Warrant is being issued
in connection with a placement (the "SERIES A PLACEMENT") of Series A
Convertible Preferred Stock ("SERIES A STOCK") being conducted by the Company
with the assistance of Dougherty & Company, LLC ("AGENT") to raise a minimum of
$2,000,000 and a maximum of $5,000,000. As used herein, the term "HOLDER" means
the Agent, or any record holder or holders of the Warrant or Warrant Shares,
whether in whole or in part.

         This Warrant is subject to the following provisions, terms and
conditions:

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

<PAGE>

         2.)     Adjustment of Warrant Exercise Price and Number of Warrant
Shares. The provisions in this Agent's Warrant relating to the Warrant Exercise
Price and the number of Warrant Shares to be issued upon exercise of this
Agent's Warrant shall be subject to adjustment from time to time as hereinafter
provided.

                (a)        Upon each adjustment of the Warrant Exercise Price,
         the Holder of this Agent's Warrant shall thereafter be entitled to
         purchase, at the Warrant Exercise Price resulting from such adjustment,
         the number of shares of Common Stock obtained by multiplying the
         Warrant Exercise Price in effect immediately prior to such adjustment
         by the number of shares of Common Stock purchasable hereto immediately
         prior to such adjustment and dividing the product thereof by the
         Warrant Exercise Price resulting from such adjustment.

                 (b)       In case the Company shall at any time subdivide its
         outstanding Common Stock into a greater number of shares or declare a
         dividend payable in Common Stock, the Warrant Exercise Price in effect
         immediately prior to such subdivision shall be proportionately reduced
         and the number of shares of Common Stock purchasable pursuant to this
         Agent's Warrant shall be proportionately increased, and conversely, in
         case the Company's outstanding Common Stock shall be combined into a
         smaller number of shares, the Warrant Exercise Price in effect
         immediately prior to such combination shall be proportionately
         increased and the number of shares of Common Stock purchasable upon the
         exercise of this Agent's Warrant shall be proportionately reduced.

                 (c)       If any capital reorganization or reclassification of
         the capital stock of the Company, or consolidation or merger of the
         Company with another corporation, or the sale of all or substantially
         all of its assets to another corporation shall be effected in such a
         way that holders of Common Stock shall be entitled to receive stock,
         securities or assets ("SUBSTITUTED PROPERTY") with respect to or in
         exchange for such Common Stock, then, as a condition of such
         reorganization, reclassification, consolidation, merger or sale, the
         Holder shall have the right, upon payment of the aggregate Warrant
         Exercise Price, to purchase and receive upon the basis and upon the
         terms and conditions specified in this Agent's Warrant, and in lieu of
         the Common Stock of the Company immediately theretofore purchasable and
         receivable upon the exercise of the rights represented hereby, such
         Substituted Property as would have been issued or delivered to the
         Holder if it had exercised this Agent's Warrant and had received upon
         exercise of this Agent's Warrant the Common Stock prior to such
         reorganization, reclassification, consolidation, merger, or sale. The
         Company shall not effect any such consolidation, merger, or sale,
         unless prior to the consummation thereof the successor corporation (if
         other than the Company) resulting from such consolidation or merger or
         the corporation purchasing such assets shall assume the obligation to
         deliver to the Holder such Substituted Property as, in accordance with
         the foregoing provisions, the Holder may be entitled to purchase.

                 (d)       If the Company takes any other action, or if any
         other event occurs which does not come within the scope of the
         provisions of Sections 2(b) or 2(c), but which should, in the Company's
         reasonable judgment, result in an adjustment in the Warrant Exercise
         Price and/or the number of shares subject to the Agent's Warrant in
         order to fairly protect the purchase rights of the Holder, an
         appropriate adjustment in such purchase rights shall be made by the
         Company.

                                      -2-

<PAGE>

                 (e)       Upon any adjustment of the Warrant Exercise Price or
         the number of shares issuable upon this Agent's Warrant, the Company
         shall give written notice thereof, by first-class mail, postage
         prepaid, addressed to the Holder at the address of the Holder as shown
         on the books of the Company, which notice shall state the Warrant
         Exercise Price resulting from such adjustment and the increase or
         decrease, if any, in the number of shares purchasable at such price
         upon the exercise of this Agent's Warrant, setting forth in reasonable
         detail the method of calculation and the facts upon which such
         calculation is based.

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

         4.)     No Shareholder Rights. This Agent's Warrant shall not entitle
its Holder to vote, receive dividends or exercise any of the rights of a
shareholder of the Company prior to exercise of this Agent's Warrant.

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

         6.)     Exercise of Agent's Warrant. This Agent's Warrant may be
exercised by the registered Holder, in whole or in part, by the surrender of
this Agent's Warrant at the principal office of the Company, together with the
Exercise Form attached hereto duly executed, accompanied by payment in full of
the amount of the aggregate Warrant Exercise Price in cash, cashier's check or
bank draft. Upon partial exercise hereof, a new warrant or warrants containing
the same date and provisions as this Agent's Warrant shall be issued by the
Company to the registered Holder for the number of Warrant Shares with respect
to which this Agent's Warrant shall not have been exercised. The Agent's Warrant
shall be deemed to have been exercised immediately prior to the close of
business on the date the Company is in receipt of this Agent's Warrant, a
completed Exercise Form, all documents the Company may reasonably request from
the Holder for the purpose of complying with applicable securities and other
laws, and payment for the number of Warrant Shares being acquired upon exercise
of this Agent's Warrant. The Holder entitled to receive the Warrant Shares
issuable upon such exercise shall be treated for all purposes as the Holder of
record of such Warrant Shares as of the close of business on such date. After
such date, the Company shall issue and deliver to the Holder or Holders entitled
to receive the same, a certificate or certificates for the number of full
Warrant Shares issuable upon such exercise, together with cash in lieu of any
fraction of a share, as provided above.

                                      -3-

<PAGE>

         7.)     Registration of Warrant Shares. The rights of the holder of
this Agent's Warrant to include Warrant Shares in a registered offering of
securities conducted by the Company are set forth in Appendix A to the Form of
Subscription Agreement and Letter of Investment Intent (Investor Rights
Provisions) utilized in connection with the Company's sale of shares of Series A
Stock, between the Company and each of the Series A Stock investors.

         8.)     Compliance with Securities Laws and Other Transfer
Restrictions.

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

                 (b)       In the event the Holder of this Agent's Warrant
         desires to transfer this Agent's Warrant, the Holder shall provide the
         Company with a Form of Assignment, in the form attached hereto
         describing the manner of such transfer, and an opinion of counsel
         (reasonably acceptable to the Company) that the proposed transfer may
         be effected without registration or qualification under applicable
         securities laws, whereupon such Holder shall be entitled to transfer
         this Agent's Warrant in accordance with the notice delivered by such
         Holder to the Company. If, in the opinion of the counsel referred to in
         this Section, the proposed transfer or disposition described in the
         written notice given may not be effected without registration or
         qualification of this Agent's Warrant, the Company shall give written
         notice thereof to the Holder hereof, and such Holder will limit its
         activities in respect to such proposed transfer or disposition as, in
         the opinion of such counsel, are permitted by law. The Company may
         place one or more restrictive legends on the Agent's Warrant or any
         certificates representing the Warrant Shares which set forth the
         restrictions contained herein, and may further place a "stop transfer"
         restriction in the Company's books and records with respect to the
         Agent's Warrant and any Warrant Shares. The restrictions set forth in
         this Agent's Warrant shall be binding upon any holder, donee, assignee
         or transferee of the Agent's Warrant or the Warrant Shares.

                 (c)       If the Company conducts an initial public offering of
         its Common Stock by filing a registration statement under the Act, the
         Holder of this Agent's Warrant or any

                                      -4-

<PAGE>

         Warrant Shares shall not, without the prior written consent of the
         Company and the managing underwriter in such offering: (i) sell,
         transfer or otherwise dispose of, or agree to sell, transfer or
         otherwise dispose of the Agent's Warrant or any of the Warrant Shares;
         (ii) sell, transfer or otherwise dispose of, or agree to sell, transfer
         or otherwise dispose of the Agent's Warrant or any right to purchase
         any of the Warrant Shares; or (iii) sell or grant, or agree to sell or
         grant, options, rights or warrants with respect to the Agent's Warrant
         or any of the Warrant Shares. Such restrictions shall be effective for
         a period of time equal to the period during which the managing
         underwriter imposes such transfer restrictions on the Company's
         officers and directors; provided, that in no event shall the restricted
         period applicable to the Holder of this Agent's Warrant exceed one
         hundred eighty (180) days after effectiveness of the Company's
         registration statement filed under the Act with the Securities and
         Exchange Commission with respect to such initial public offering.

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

         10.)    Loss, Theft, Destruction or Mutilation of Agent's Warrant. Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Agent's Warrant, and in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to it,
and upon reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Agent's Warrant, if
mutilated, the Company will make and deliver a new Agent's Warrant of like tenor
and dates as of such cancellation, in lieu of this Agent's Warrant.

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

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

                                      -5-

<PAGE>

the last Holder of this Agent's Warrant who shall have furnished an address to
the Company in writing. Delivery shall be deemed to have occurred on the date
three (3) days after depositing the notice in the U.S. mail or one (1) day after
delivery of such notice to a reputable overnight delivery service.

         13.)    Additional Right to Convert Agent's Warrant (Cashless
Exercise).

                 (a)       The Holder of this Agent's Warrant shall have the
         right to require the Company to convert this Agent's Warrant (the
         "CONVERSION RIGHT") at any time after it is exercisable but prior to
         its expiration, into shares of Company Common Stock as provided for in
         this Section. Upon exercise of the Conversion Right, the Company shall
         deliver to the Holder (without payment by the Holder of any Warrant
         Exercise Price) that number of shares of Company Common Stock equal to
         the quotient obtained by dividing (x) the value of the Warrant at the
         time the Conversion Right is exercised (determined by subtracting the
         aggregate Warrant Exercise Price for the Warrant Shares in effect
         immediately prior to the exercise of the Conversion Right from the
         aggregate Fair Market Value for the Warrant Shares immediately prior to
         the exercise of the Conversion Right) by (y) the Fair Market Value of
         one share of Company Common Stock immediately prior to the exercise of
         the Conversion Right.

                 (b)       The Conversion Right may be exercised by the Holder,
         at any time or from time to time, prior to its expiration, on any
         business day by delivering a written notice in the form attached hereto
         (the "CONVERSION NOTICE") to the Company at the offices of the Company
         exercising the Conversion Right and specifying (i) the total number of
         shares of Stock the Holder will purchase pursuant to such conversion
         and (ii) a place and date not less than ten or more than 20 business
         days from the date of the Conversion Notice for the closing of such
         purchase.

                 (c)       At any closing under Section 13(b) hereof, (i) the
         Holder will surrender the Warrant and (ii) the Company will deliver to
         the Holder a certificate or certificates for the number of shares of
         Company Common stock issuable upon such conversion, together with cash,
         in lieu of any fraction of a share, and (iii) the Company will deliver
         to the Holder a new warrant representing the number of shares, if any,
         with respect to which the warrant shall not have been exercised.

                 (d)       "FAIR MARKET VALUE" of a share of Common Stock as of
         a particular date (the "DETERMINATION DATE") shall mean:

                           (i)  If the Company's Common Stock is traded on an
                 exchange or is quoted on the Nasdaq National Market, then the
                 average closing or last sale prices, respectively, reported
                 for the ten (10) business days immediately preceding the
                 Determination Date.

                           (ii)  If the Company's Common Stock is not traded on
                 an exchange or on the Nasdaq National Market but is traded on
                 the Nasdaq SmallCap Market or other over-the-counter market,
                 then the average of the mean of the closing bid and ask prices
                 reported for the ten (10) business days immediately preceding
                 the Determination Date, and

                                      -6-

<PAGE>

                           (iii)  If the Company's Common Stock is not traded on
                 an exchange or on the Nasdaq National Market, Nasdaq SmallCap
                 Market or other over-the-counter market, then the price
                 established in good faith by the Board of Directors.

ISSUED this 20th day of December, 2000.

REDLINE PERFORMANCE PRODUCTS, INC.

By: /s/  Kent Harle
    ------------------------
    Its: PRESIDENT

                                      -7-

<PAGE>

                               FORM OF ASSIGNMENT

                       REDLINE PERFORMANCE PRODUCTS, INC.

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

<TABLE>
<CAPTION>
NAME OF ASSIGNEE                    ADDRESS                     NUMBER OF SHARES
----------------                    -------                     ----------------
<S>                                 <C>                         <C>
</TABLE>

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

Dated: _____________ ___, _____

___________________________________
Signature

___________________________________
Print Name

                                      -8-

<PAGE>

                                  EXERCISE FORM

                       REDLINE PERFORMANCE PRODUCTS, INC.

             (To be executed only upon exercise of Agent's Warrant)

         The undersigned registered owner of this Agent's Warrant irrevocably
exercises this Agent's Warrant for and purchases _____________________________
of the number of shares of Common Stock of REDLINE PERFORMANCE PRODUCTS, INC.
purchasable with this Agent's Warrant, and herewith makes payment therefor, all
at the price and on the terms and conditions specified in this Agent's Warrant.

         The undersigned agrees to deliver a completed and executed
subscription, investment or similar document requested by the Company in
connection with the purchase of shares of Common Stock upon exercise of this
Agent's Warrant.

Dated: __________________ ___, _____

_______________________________________
Signature of Registered Owner

_______________________________________
Street Address

_______________________________________
City, State, Zip Code

_______________________________________
IRS Identification Number

                                      -9-

<PAGE>

                             CASHLESS EXERCISE FORM

                       REDLINE PERFORMANCE PRODUCTS, INC.

        (To be executed upon exercise of Warrant pursuant to Section 13)

         The undersigned hereby irrevocably elects a cashless exercise of the
right of purchase represented by the within Warrant Certificate for, and to
purchase thereunder, ______________ shares of Common Stock, as provided for in
Section 13 therein.

         Please issue a certificate or certificates for such Common Stock in the
name of, and pay any cash for any fractional share to:

                                             Name_______________________________
                                                 (Please print Name)

                                             Address____________________________

                                                    ____________________________

                                             Social Security No.________________

                                             Signature__________________________

         NOTE: The above signature should correspond exactly with the name on
the first page of this Warrant Certificate or with the name of the assignee
appearing in the Form of Assignment.

         And if said number of shares shall not be all the shares purchasable
under the within Warrant Certificate, a new Warrant Certificate is to be issued
in the name of said undersigned for the balance remaining of the shares
purchasable thereunder rounded up to the next higher number of shares.

                                      -10-

<PAGE>

                       REDLINE PERFORMANCE PRODUCTS, INC.

                           INVESTOR RIGHTS PROVISIONS

         1.)     Certain Definitions. Capitalized terms not defined herein shall
have the meanings set forth in the Series A Preferred Stock Subscription
Agreement and Letter of Investment Intent between the Company and each Series A
Holder, to which this Attachment B is attached. In addition, as used in this
Attachment B, the following terms shall have the following respective meanings:

                 "AFFILIATE" means, as to any person, a person that directly or
indirectly, through one or more intermediaries, controls or is controlled by, or
is under common control with, such person. The term "control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a person, whether through the
ownership of voting stock or an equity interest, by contract, or otherwise.

                 "AGENT HOLDERS" shall mean the holders of: (i) Agent Warrants;
and (ii) shares of Common Stock issued upon the exercise of the Agent Warrants.

                 "AGENT WARRANTS" shall mean a class of warrants to purchase
Common Stock, each having the designation "AD-", which warrants were issued as
compensation in connection with the Company's sale of Series A Preferred Stock.

                 "BRIDGE HOLDERS" shall mean the holders of: (i) Bridge
Warrants; and (ii) the Common Stock issued upon exercise of Bridge Warrants.

                 "BRIDGE WARRANTS" shall mean a class of warrants to purchase
Common Stock, each having the designation "AB-", which warrants were issued in
connection with the Company's sale of 10% convertible subordinated promissory
notes.

                 "COMMISSION" shall mean the Securities and Exchange Commission
of the United States or any other U.S. federal agency at the time administering
the Securities Act.

                 "COMMON STOCK" shall mean the Common Stock of the Company.

                 "COMMON STOCK EQUIVALENTS" shall mean the Company's Common
Stock then outstanding plus the shares of Common Stock then issuable upon
conversion of the outstanding Series A Preferred Stock.

                 "COMPANY" shall mean Redline Performance Products, Inc.

                 "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934,
as amended, or any similar United States federal statute and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at
the time.

                                       1.

<PAGE>

                 "HOLDER" shall mean each Series A Holder, Agent Holder and
Bridge Holder.

                 "INDEMNIFIED PARTY" shall have the meaning assigned in Section
7(c) hereof.

                 "INDEMNIFYING PARTY" shall have the meaning assigned in Section
7(c) hereof.

                 "INITIATING HOLDERS" shall have the meaning assigned in Section
2(a) hereof.

                 "IPO" shall mean the closing of the first public offering of
Common Stock of the Company pursuant to a registration statement under the
Securities Act declared effective by the Commission.

                 "MATERIAL ADVERSE INFORMATION" shall have the meaning assigned
in Section 4(b) hereof.

                 "NEW SECURITIES" shall mean any shares of capital stock of the
Company, including Common Stock and Series A Preferred Stock, whether or not now
authorized, and rights, options or warrants to purchase said shares of Common
Stock, and securities of any type whatsoever that are, or may become,
convertible into said shares of Common Stock or Series A Preferred Stock.
Notwithstanding the foregoing, "New Securities" does not include (i) the Series
A Preferred Stock purchased by the Holders prior hereto or concurrently
herewith, (ii) the Common Stock issuable upon conversion of Series A Preferred
Stock, (iii) securities offered to the public generally pursuant to a
registration statement under the Securities Act, (iv) securities issued pursuant
to a Rule 145 Transaction, (v) the Company's Common Stock or related options
convertible into such Common Stock issued to employees, officers and directors
of, and consultants to, the Company, which shares were either issued prior to
the Closing or are issued after the Closing pursuant to arrangements approved by
the Board of Directors of the Company, or upon the exercise of options granted
to such parties pursuant to any such arrangement or (vi) shares issued in
connection with any stock split, stock dividend or recapitalization by the
Company.

                 "OTHER HOLDERS" shall have the meaning assigned in Section 2(a)
hereof

                 "REGISTRATION EXPENSES" shall mean all expenses, except as
otherwise stated below, incurred by the Company in complying with Sections 2 and
3 hereof, including, without limitation, all registration, qualification and
filing fees, printing expenses, escrow fees, fees and disbursements of counsel
for the Company and blue sky fees and expenses.

                 "REGISTRABLE SECURITIES" shall mean (i) Common Stock issued or
issuable upon conversion of Series A Preferred Stock; (ii) Common Stock issued
or issuable upon exercise of Bridge Warrants; (iii) Common Stock issued or
issuable upon exercise of Agent Warrants; and (iv) any shares of Common Stock
issued or issuable in respect of such Common Stock upon any stock split, stock
dividend, recapitalization or similar event. Shares of Common Stock or other
securities shall only be treated as Registrable Securities if they have not been
(A) sold to or through a broker or dealer or underwriter in a public
distribution or a public securities transaction or (B) sold in a transaction
exempt from the registration and prospectus delivery requirements of the
Securities Act so that all transfer restrictions and restrictive legends with
respect thereto are removed upon the consummation of such sale.

                                       2.

<PAGE>

                 The terms "REGISTER," "REGISTERED" and "REGISTRATION" refer to
a registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement by the Commission and such other
governmental or regulatory bodies as are appropriate.

                 "RULE 145 TRANSACTION" shall mean any transaction described in
Rule 145(a) promulgated by the Commission under the Securities Act.

                 "SERIES A PREFERRED STOCK" shall mean the Series A Preferred
Stock of the Company.

                 "SERIES A FINANCING" shall mean the offer and sale by the
Company of Series A Preferred Stock.

                 "SERIES A HOLDERS" shall mean the holders of: (i) Series A
Preferred Stock; and (ii) Common Stock issued upon the conversion of Series A
Preferred Stock.

                 "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended, or any similar United States federal statute and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at
the time.

                 "SELLING EXPENSES" shall mean all underwriting discounts,
selling commissions, stock transfer taxes and fees of counsel to Holders
applicable to the securities included in a registration by the Holders.

2.)      Requested Registration on Form S-3.

(a)      Request for Registration. Commencing one (1) year after an IPO, upon
the written request by the Holders of Registrable Securities who collectively
hold more than 50% of the Registrable Securities (such requesting holder or
holders referred to as the "INITIATING HOLDERS"), provided, that the Company is
eligible to use registration Form S-3, or a successor form, to effect the
requested registration and the Registrable Securities included in any such
registration have a dollar value of not less than $2 million as of the close of
business on the date on which such request was made, the Company will:

                 (1)       promptly give written notice of the proposed
                           registration, qualification or compliance to all
                           other Holders who are not Initiating Holders; and

                 (2)       as soon as practicable, use its reasonable best
                           efforts to effect such registration, qualification or
                           compliance (including, without limitation,
                           appropriate qualification under applicable blue sky
                           or other state securities laws and appropriate
                           compliance with applicable regulations issued under
                           the Securities Act and any other governmental
                           requirements or regulations) as may be so requested
                           and as would permit or facilitate the sale and
                           distribution of all or such portion of such
                           Registrable Securities as are specified in such
                           request, together with all or such portion of the
                           Registrable Securities of any Holder(s) joining in
                           such request as are specified in a written request
                           received by the Company within twenty (20)

                                       3.

<PAGE>

                           days after receipt of such written notice from the
                           Company (collectively, the "OTHER HOLDERS").

(b)      Underwriting. In the event that the Initiating Holders indicate in
their written request pursuant to Section 2(a) that a registration pursuant to
this Section 2 is for a registered public offering involving an underwriting,
the Company shall so advise the Holders as part of the notice given pursuant to
Section 2(a)(1). In such event, the right of any Holder, as the case may be, to
registration pursuant to this Section 2 shall be conditioned upon such Holder's
participation in the underwriting arrangements required by this Section 2, and
the inclusion of such Holder's Registrable Securities in the underwriting to the
extent requested shall be limited to the extent provided herein. The Company
shall (together with all Initiating Holders and Other Holders proposing to
distribute their securities through such underwriting) enter into an
underwriting agreement in customary form with the managing underwriter selected
by the Company. Notwithstanding any other provision of this Section 2, if the
managing underwriter advises the Initiating Holders in writing that marketing
factors require a limitation of the number of shares to be underwritten, then
the Company shall so advise the Initiating Holders and the Other Holders, and
the number of shares that may be included in the registration and underwriting
shall be allocated among the Initiating Holders and the Other Holders in
proportion, as nearly as practicable, to the respective amounts of Registrable
Securities that such Initiating Holders and Other Holders have requested
pursuant to Section 2(a) hereof to include in such registration. No Registrable
Securities or other securities excluded from the underwriting by reason of the
underwriter's marketing limitation shall be included in such registration. To
facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to any
Initiating Holder or Other Holder to the nearest one hundred (100) shares.

(c)      The Company shall not be obligated to take any action to effect any
such registration, qualification or compliance pursuant to this Section 2:

                 (1)       During the period starting with the date sixty (60)
                           days prior to the Company's estimated date of filing
                           of any registration statement pertaining to
                           securities of the Company sold by the Company (other
                           than a registration of securities in a Rule 145
                           Transaction or with respect to an employee benefit
                           plan) and ending one hundred eighty (180) days
                           following the effective date of any public offering
                           by the Company of such securities; or

                 (2)       After the Company has effected one (1) registration
                           pursuant to this Section 2, and such registration has
                           been declared or ordered effective.

(d)      The Company shall be entitled to postpone the filing of a registration
statement pursuant to this Section 2 for a reasonable time (not to exceed ninety
(90) days) on one occasion during any twelve (12) month period if;

                 (1)       Within ten (10) business days after the Company
                           receives a demand notice, the Company shall furnish
                           to the Holders a certificate signed by the President
                           of the Company stating that in the good faith belief
                           of a majority

                                       4.

<PAGE>

                           of the Board of Directors, it would be in the best
                           interests of the Company and its stockholders to
                           delay any such registration at that time;

                 (2)       If at any time the Company is subject to the periodic
                           reporting requirements under the Exchange Act, and
                           the Company informs the Holders that it believes that
                           any fact or circumstance concerning the Company
                           exists which, in the good faith judgment of a
                           majority of the Board of Directors, constitutes
                           material information which has not been publicly
                           disclosed and which the Board of Directors believes,
                           in its good faith judgment, is inappropriate or
                           inadvisable so to disclose; or

                 (3)       The Company is engaged in any program for the
                           purchase of shares of Common Stock.

                 (4)       If the Company shall so postpone the filing of a
                           registration statement, the Company promptly shall
                           give the Holders written notice of such postponement,
                           including a statement of the reasons therefore and
                           the expected duration thereof, and the Initiating
                           Holders making the request for demand registration
                           shall have the right to withdraw the request for
                           registration by giving written notice to the Company
                           within fifteen (15) days after receipt of the notice
                           of postponement. If such Holders shall withdraw the
                           request for registration: (A) such registration shall
                           not recommence; and (B) such request shall not be
                           counted as the one (1) registration to which the
                           Holders (taken together as a whole) are entitled
                           under this Section 2.

                 (5)       Subject to the foregoing clauses (1) through (4), the
                           Company shall file a registration statement covering
                           the Registrable Securities so requested to be
                           registered as soon as practicable after receipt of
                           the request or requests of the Initiating Holders.

3.)      Company Registration.

(a)      Notice of Registration. If at any time or from time to time, after the
date six (6) months after an IPO, the Company shall determine to register any of
its securities, either for its own account or the account of a security holder
or holders, other than (i) a registration on Form S-8 or a successor form
relating solely to employee benefit plans (ii) a registration on Form S-4 or a
successor form; or (iii) a registration relating solely to a Rule 145
Transaction, the Company will:

                 (1)       promptly give to each Holder written notice thereof;
                           and

                 (2)       subject to Section 3(b), include in such registration
                           (and any related qualification under blue sky laws or
                           other compliance), and in any underwriting involved
                           therein, all the Registrable Securities specified in
                           a written request or requests, made within twenty
                           (20) days after receipt of such written notice from
                           the Company, by any Holder. If any Holder decides not
                           to include all of its Registrable Securities in such
                           registration,

                                       5.

<PAGE>

                           such Holder shall nevertheless continue to have the
                           right to include any Registrable Securities in any
                           subsequent registration statements as may be filed by
                           the Company with respect to offerings of its
                           securities, all upon the terms and conditions set
                           forth herein.

(b)      Underwriting. If the registration of which the Company gives notice is
for a registered public offering involving an underwriting, the Company shall so
advise the Holders as a part of the written notice given pursuant to Section
3(a)(1). In such event, the right of any Holder to registration pursuant to this
Section 3 shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of Registrable Securities in the underwriting to
the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall, together with the Company, enter into an
underwriting agreement in customary form with the managing underwriter selected
for such underwriting by the Company; provided, that no Holder shall be liable
for indemnification or contribution in a dollar amount in excess of the net
proceeds such Holder received in such offering. Notwithstanding any other
provision of this Section 3, if the managing underwriter determines that
marketing factors require a limitation of the number of shares to be
underwritten, the managing underwriter may limit on a pro rata basis (based on
the total number of the Registrable Securities entitled to registration held by
the Holder) the number of Registrable Securities to be included in such
registration; provided that no such reduction shall be made with respect to
securities being offered by the Company for its own account. The Company shall
advise all Holders proposing to distribute their securities through such
underwriting of any such limitations, and the number of shares of Registrable
Securities that may be included in the registration. To facilitate the
allocation of shares in accordance with the above provisions, the Company may
round the number of shares allocated to any Holder proposing to distribute their
securities through such underwriting to the nearest one hundred (100) shares.

(c)      Right to Terminate Registration. The Company shall have the right to
terminate or withdraw any registration initiated by it under this Section 3
prior to or after the effectiveness of such registration whether or not any
Holder has elected to include Registrable Securities in such registration.

4.)      Expenses of Registration.

(a)      The Company shall bear all Registration Expenses incurred in connection
with all registrations pursuant to Sections 2 and 3 hereof. All Selling Expenses
relating to securities registered on behalf of the Holders shall be borne by the
Holders, as the case may be, pro rata on the basis of the number of shares so
registered.

(b)      Notwithstanding anything herein to the contrary, the Company shall not
be required to pay (and the Holders shall be required to pay as set forth below)
for expenses of any registration proceeding begun pursuant to Section 2, the
request of which has been subsequently withdrawn by the Initiating Holders
unless (a) the withdrawal is based upon Material Adverse Information concerning
the Company of which the Initiating Holders were not aware at the time of such
request or (b) the Holders of a majority of Registrable Securities agree to
forfeit their right to one requested registration pursuant to Section 2 or 3, as
the case may be, in which event such right shall be forfeited by all Holders. If
the Holders are required to pay Registration Expenses

                                       6.

<PAGE>

pursuant hereto, such expenses (which shall not be deemed to include (i) the
cost of normal audits of the Company that would have been performed in any
event, or (ii) the time of any executive or other personnel of the Company
involved in the preparation of the registration statement) shall be borne by the
Holders of securities (including Registrable Securities) requesting such
registration in proportion to the number of shares for which registration was
requested. For purposes of this Section 4(b), "Material Adverse Information"
shall mean information relating to any occurrence that is materially adverse as
to the business, properties or financial condition of the Company, but shall not
include information relating to the economy or financial markets generally or
the Company's industry generally.

5.)      Registration Procedures. Whenever the holders of Registrable Securities
have requested that any Registrable Securities be registered as provided here,
the Company shall use its reasonable best efforts to effect the registration and
the sale of such Registrable Securities in accordance with the intended method
of disposition thereof, and pursuant thereto the Company shall as expeditiously
as possible:

(a)      Prepare and file with the Commission a registration statement with
respect to such Registrable Securities and use its reasonable best efforts to
cause such registration statement to become effective (provided that before
filing a registration statement or prospectus or any amendments or supplements
thereto, the Company shall furnish to the counsel selected by the holders of a
majority of the Registrable Securities covered by such registration statement
copies of all such documents proposed to be filed, which documents shall be
subject to the review and comment of such counsel);

(b)      Notify each holder of Registrable Securities of the effectiveness of
each registration statement filed hereunder and prepare and file with the
Commission such amendments and supplements to such registration statement and
the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period of not less than one hundred
twenty (120) days and comply with the provision of the Securities Act with
respect to the disposition of all securities covered by such registration
statement during such period in accordance with the intended methods of
disposition by the sellers thereof set forth in such registration statement;

(c)      Furnish to each seller of Registrable Securities such number of copies
of such registration statement, each amendment and supplement thereto, the
prospectus included in such registration statement (including each preliminary
prospectus) and such other documents as such seller may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by such
seller;

(d)      Use its reasonable best efforts to register or qualify such Registrable
Securities under such other securities or blue sky laws of such jurisdictions as
any seller reasonably requests and do any and all other acts and things which
may be reasonably necessary to advisable to enable such seller to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
seller (provided that the Company shall not be required to (i) qualify generally
to do business in any jurisdiction where it would not otherwise be required to
qualify but for this subparagraph, (ii) subject itself to taxation in any such
jurisdiction or (iii) consent to general service of process in any such
jurisdiction);

                                       7.

<PAGE>

(e)      Notify each seller of such Registrable Securities, at any time when a
prospectus relating thereto is required to be delivered under the Securities
Act, of the happening of any event as a result of which the prospectus included
in such registration statement contains an untrue statement of a material fact
or omits any fact necessary to make the statements therein not misleading, and,
at the request of any such seller, the Company shall prepare a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus shall not contain an untrue
statement of a material fact or omit to state any fact necessary to make the
statements therein not misleading;

(f)      Subject to reasonable limits on disclosure, make available for
inspection by any seller of Registrable Securities, any underwriter
participating in any disposition pursuant to such registration statement and any
attorney, accountant or other agent retained by any such seller or underwriter,
all financial and other records, pertinent corporate documents and properties of
the Company, and cause the Company's officers, directors, employees and
independent accountants to supply all information reasonably requested by any
such seller, underwriter, attorney, accountant or agent in connection with such
registration statement;

(g)      Cause all such Registrable Securities to be listed on each securities
exchange on which similar securities issued by the Company are then listed or,
if not then listed and if the registration relates to an IPO, cause such
Registrable Securities to be included in whatever exchange or national automated
quotation system the Board of Directors determines is appropriate;

(h)      Provide a transfer agent and registrar for all Registrable Securities
and a CUSIP number for all such Registrable Securities, in each case not later
than the effective date of such registration;

(i)      Cooperate with the sellers of Registrable Securities and the managing
underwriter(s), if any, to facilitate the timely preparation and delivery of
certificates representing the Registrable Securities to be sold, without any
restrictive legends, in such denominations and registered in such names as the
managing underwriter(s) may request at least two business days prior to any sale
thereof to the underwriters, if applicable;

(j)      Participate, to the extent reasonably requested by the managing
underwriter for the offering or the holders of Registrable Securities to be
sold, in efforts to sell the Registrable Securities under the offering
(including, without limitation, participating in "roadshow" meetings with
prospective investors) that would be customary for underwritten primary
offerings of a comparable percent of equity securities by the Company;

(k)      Obtain from its accountants "cold-comfort" letters, dated the effective
date of the Registration Statement and the date of the closing of the sale of
the Registrable Securities, and addressed to the Company and, subject to such
accountant's reasonable discretion, to the selling Holders, in form and
substance as are customarily issued in connection with underwritten public
offerings;

                                       8.

<PAGE>

(l)      Obtain from its counsel an opinion, addressed to the selling Holders,
with respect to the offering in form and substance as are customarily issued in
connection with comparable offerings;

(m)      Use its reasonable best efforts to cause such Registrable Securities
covered by such registration statement to be registered with or approved by such
other governmental agencies or authorities as may be necessary to enable the
sellers thereof to consummate the disposition of such Registrable Securities;
and

(n)      Take such other actions as the underwriters, if any, reasonably request
in order to expedite or facilitate the disposition of such Registrable
Securities.

6.)      Additional Provisions.

(a)      Information by Holder. The Holders of Registrable Securities included
in any registration shall furnish to the Company such information, including
information regarding such Holders, the Registrable Securities held by them and
the distribution proposed, as the Company may request in writing to enable the
Company to comply with the provisions hereof in connection with any
registration, qualification or compliance referred to herein.

(b)      Termination. All rights granted and obligations imposed pursuant to
Sections 2 and 3 shall terminate (i) as to all Holders on the earlier of three
(3) years after the date of an IPO or (ii) as to each Holder, as the case may
be, such time as such Holder (together with such Holder's Affiliates) holds less
than one percent (1%) of the Company's outstanding capital stock (if applicable,
on an as-converted-to-Common-Stock basis) and such Holder can sell all of such
Holder's Registrable Securities pursuant to Rule 144(k) or pursuant to Rule 144
under the Securities Act within any three (3) month period.

(c)      Market Standoff. Each holder of Registrable Securities shall not effect
any public sale or distribution (including sales pursuant to Rule 144) of equity
securities of the Company, or any securities convertible into or exchangeable or
exercisable for such securities, during the seven (7) days prior to and the
ninety (90) day period beginning on the effective date of any underwritten
registration pursuant to Section 2 or any underwritten Company registration in
which Registrable Securities are included (except as part of such underwritten
registration), unless the underwriters managing the registered public offering
otherwise agree.

(d)      Suspension of Disposition. The Holders agree that upon receipt of any
notice from the Company of any material event, the Holders will discontinue
disposition of any Registrable Securities pursuant to the registration statement
covering such Registrable Security until the Holders receipt of the copies of
the supplemented or amended prospectus, and if so directed by the Company, the
Holders would deliver to the Company all copies then and there possession of any
prospectus covering such Registrable Securities current at the time of receipt
of such notice, other than permanent file copies. If the Company shall give any
such notice, the period set forth in Section 5(b) shall be extended by the
number of days during the period from and including the date of the giving of
such notice to and including the date when Holders shall have received the
copies of the supplemented or amended prospectus contemplated herein.

                                       9.

<PAGE>

(e)      Limitations on Subsequent Registration Rights. The Company shall not,
without the prior written consent of Holders who collectively hold at least a
majority of the Registrable Securities, enter into any agreement (except as
provided herein) with any holder or prospective holder of any securities of the
Company which would allow such holder or prospective holder to include
securities of the Company in any registration filed under Sections 2 or 3,
unless, under the terms of such agreement, such holder or prospective holder may
include such securities in any such registration only on terms substantially
similar to the terms on which holders of Registrable Securities may include
shares in such registration.

7.)      Indemnification.

(a)      By Company. The Company will indemnify each Holder, with respect to
each registration, qualification or compliance which has been effected pursuant
to Section 2 or 3 hereof to this Attachment B, against all expenses, claims,
losses, damages or liabilities (or actions in respect thereof), including any of
the foregoing incurred in settlement of any litigation, commenced or threatened,
arising out of or based on any untrue statement (or alleged untrue statement) of
a material fact contained in any registration statement, prospectus, offering
circular or other document, or any amendment or supplement thereto, incident to
any such registration, qualification or compliance, or based on any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading, for any legal and any other expenses
reasonably incurred in connection with investigating, preparing or defending any
such claim, loss, damage, liability or action, provided that the Company will
not be liable in any such case to the extent that any such claim, loss, damage,
liability or expense arises out of or is based on any untrue statement or
omission or alleged untrue statement or omission, made in reliance upon and in
conformity with information furnished to the Company for use in connection with
such registration by such Holder, controlling person or underwriter. If the
Holders are represented by counsel other than counsel for the Company, the
Company will not be obligated under this Section 7(a) to reimburse legal fees
and expenses of more than one separate counsel for the Holders.

(b)      By Holders. Each Holder will, if Registrable Securities held by such
Holder are included in the securities as to which such registration,
qualification or compliance is being effected, indemnify the Company, each of
its directors and officers and its legal counsel and independent accountants,
each underwriter, if any, of the Company's securities covered by such a
registration statement, each person who controls the Company or such underwriter
within the meaning of Section 15 of the Securities Act, and each other such
Holder, each of their officers and directors and each person controlling such
Holder or within the meaning of Section 15 of the Securities Act, against all
claims, losses, damages and liabilities (or actions in respect thereof) arising
out of or based on any untrue statement (or alleged untrue statement) of a
material fact contained in any such registration statement, prospectus, offering
circular or other document, or any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading, and will reimburse the Company, such Holders, such directors,
officers, legal counsel, independent accountants, persons, underwriters or
controlling persons for any legal or any other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,
liability or action, in each case to the extent, but only to the extent, that
such

                                      10.

<PAGE>

untrue statement (or alleged untrue statement) or omission (or alleged omission)
is made in such registration statement, prospectus, offering circular or other
document in reliance upon and in conformity with information furnished to the
Company for use in connection with such registration by such Holder, as the case
may be.

(c)      Procedures. Each party entitled to indemnification under this Section 7
(the "PARTY INDEMNIFIED") shall give notice to the party required to provide
indemnification (the "INDEMNIFYING PARTY") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld), and the Indemnified Party may participate in such defense at its own
expense, provided, however, that the failure of any Indemnified Party to give
notice as provided herein shall not relieve the Indemnifying Party of its
obligations under this Attachment B unless the failure to give such notice is
prejudicial to an Indemnifying Party's ability to defend such action. No
Indemnifying Party, in the defense of any such claim or litigation, shall,
except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party
of a release from all liability in respect to such claim or litigation.

8.)      Information Rights.

(a)      Delivery of Information. The Company shall deliver to each Holder, as
soon as practicable, but in any event within one hundred twenty (120) days after
the end of each fiscal year of the Company, an income statement for such fiscal
year, a balance sheet of the Company as of the end of such year, and a schedule
as to the sources and applications of funds for such year, such year-end
financial reports to be in reasonable detail, prepared in accordance with
generally accepted accounting principles, and audited and certified by
independent public accountants selected by the Company. The Company shall also
deliver to each Holder within sixty (60) days after the end of each quarter, an
unaudited income statement and balance sheet for and as of the end of such
quarter.

(b)      Termination of Information Covenants. The covenants set forth in this
Section 8 shall terminate as to each Holder and be of no further force or effect
immediately upon the Company becoming a reporting company under the Exchange
Act.

(c)      Confidentiality of Information. Each Holder agrees that any information
obtained by such Holder pursuant to this Section 8 which is, or would reasonably
be perceived to be, proprietary to the Company or otherwise confidential will
not be disclosed without the prior written consent of the Company. Each Holder
further acknowledges and understands that any information so obtained which may
be considered material non-public information will not be utilized by such
Holder in connection with purchases and/or sales of the Company's securities
except in compliance with applicable state and federal antifraud statutes.

                                      11.

<PAGE>

9.)      Amendments.

         Any term included in this Attachment B may be amended and the
observance of any term of this Attachment B may be waived only with the written
consent of the Company and the holders of more than 50% of the Registrable
Securities. Any amendment or waiver effected in accordance with this Section
will be binding upon the Company and each holder of securities in to which such
securities are convertible, and any future holders of such securities. Any
holder of securities subject to this Attachment B may waive its rights hereunder
without obtaining the consent of any other person.

10.)     Rule 144 Requirements. During such time as a class of the Company's
securities is registered under Section 12 of the Exchange Act, the Company
agrees to use reasonable efforts to:

(a)      Comply with the requirements of Rule 144(c) under the Securities Act
with respect to current public information about the Company;

(b)      File with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and Exchange Act; and

(c)      Furnish to any holder of Registrable Securities upon request (i) a
written statement by the Company as to its compliance with the requirements of
said Rule 144(c), and the reporting requirements of the Securities Act and the
Exchange Act and (ii) a copy of the most recent annual or quarterly report of
the Company.

11.)     Transfer of Registration Rights.

         The rights to cause the Company to register Registrable Securities as
provided herein may be transferred by any Holder in any transfer of the
Registrable Securities to a transferee; provided, that the Company is given
written notice by such Holder of Registrable Securities at the time of the said
transfer stating the name and address of said transferee and identifying the
securities with respect to which such registration rights are being transferred,
that said transferee agrees in writing to be bound by the provisions set forth
herein.

                                      12.<PAGE>
                                                                   Exhibit 10.11

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

March 1, 2001

GunnAllen Financial, Inc.
1715 North Westshore Blvd., Suite 700
Tampa, Florida 33607

Gentlemen:

       Redline Performance Products, Inc., a company incorporated under the laws
of the State of Minnesota (the "Company"), hereby confirms its agreement with
GunnAllen Financial, Inc. (the "Placement Agent") as follows:

       1. Description of Transaction. The Company will offer (the "Offering")
for sale to a limited number of persons meeting certain criteria for "accredited
investor" status (as more fully described in a Confidential Private Offering
Memorandum and the exhibits and other attachments annexed thereto (collectively,
the "Memorandum")) to be approved by the Placement Agent, up to one hundred
(100) units, subject to the sale of up to an additional twenty-two (22) units
(the "Units"), each consisting of twenty thousand (20,000) shares of the
Company's Series A Preferred Stock (the "Shares"), at a purchase price of $1.25
per Share and a warrant which expires at the close of business on June 30, 2002
(the "Warrants") to purchase five thousand (5,000) shares of the Company's
common stock at an exercise price of $1.50 per share, with a minimum purchase of
one (1) Unit ($30,000). The Placement Agent shall have the right to accept less
than the minimum one (1) Unit at its option. The purchase price of each Unit
shall be allocated $25,000 for the Shares and $5,000 for the Warrant. The Units
are more fully described in the Memorandum. Capitalized words not defined herein
shall have the meaning set forth in the Memorandum. The Company may accept
subscriptions for Units at its discretion.

       Additionally, the Company hereby authorizes the Placement Agent to
solicit qualified institutional investors (the "Institutional Placement")
regarding a potential investment or loan in the amount of up to five million
dollars ($5,000,000). The terms of any investment or loan in the Institutional
Placement are subject to the Company's prior approval and to the Company and the
Agent entering into a supplemental agency agreement or an amendment to this
Agency Agreement pertaining to the Institutional Placement.

       The Placement Agent shall be entitled to engage sub-agents in connection
with the Offering, and their compensation shall be included as part of and not
in addition to the compensation provided for the Placement Agent herein. Any
such sub-agent shall be bound by the terms of this Agreement.

       2. Appointment of the Placement Agent. The Company hereby appoints the
Placement Agent as its exclusive agent to offer and sell the Units on a "best
efforts, any or all" basis to accredited investors, as set forth in Section 3
below. The Placement Agent, on the basis of the representations, warranties,
covenants and agreements of the Company, and subject to the conditions contained
herein,

<PAGE>
GunnAllen Financial, Inc.
March 1, 2001
Page 2

accepts such appointment and agrees to use its best efforts to sell the Units.
It is understood that the Placement Agent has no commitment to sell the Units
other than to use its best efforts.

       3. Purchase, Sale and Delivery of Units. On the basis of the
representations and warranties contained herein, and subject to the terms and
conditions set forth herein, the parties agree that:

              a. Regulation D Offering. Neither the offer nor the sale of the
       Units has been or will be registered with the Securities and Exchange
       Commission ("SEC"). The Units will be offered and sold in reliance upon
       the exemption from registration provided by Rule 506 under Regulation D
       ("Reg D") adopted under the Securities Act of 1933, as amended (the
       "Act"), will only be sold to "accredited investors" as such term is
       defined under Reg D ("Accredited Investors") and will be made within the
       limitations of Rules 502(c) and (d); the Units will be offered for sale
       only in states in which the Units have been qualified or registered for
       sale or are exempt from such qualification or registration; and the
       Company will provide the Placement Agent for delivery to all offerees and
       purchasers and their representatives, if any, any information, documents
       and instruments which the Placement Agent and Company deem necessary to
       comply with the rules, regulations and judicial and administrative
       interpretations respecting compliance with applicable state and federal
       statutes and regulations.

              b. Subscription for Units. Subscription for Units shall occur by
       execution and delivery by the subscriber (the "Subscriber") of a
       Subscription Agreement (the "Subscription Agreement") in the form annexed
       as a part of the Memorandum together with such other documents and
       instruments as are set forth in the Memorandum (the "Subscription
       Documents").

              c. Receipt of Funds. Each Subscriber for the Units shall deliver
       to the Placement Agent a check payable to "Redline Performance Products,
       Inc." or shall wire transfer funds to the Placement Agent, in respect of
       the purchase price of the Units subscribed for, in accordance with the
       instructions of the Placement Agent, which funds shall be held without
       interest by the Placement Agent until the Company has accepted and
       approved the Subscriber's Subscription Agreement, after which, the funds
       shall be immediately available for use by the Company.

              d. Closing; Termination of Offering. An initial closing of the
       Offering (the "Initial Closing") may occur after one or more Subscription
       Agreements for (and funds in respect of the purchase price of) any Units
       are received and accepted by the Placement Agent or the Company and such
       Subscription Agreements are approved by the Company. Thereafter, the
       Offering may continue, up to a maximum (including the Units sold in
       connection with the Initial Closing) of 122 Units. All such sales must be
       completed not later than the close of business on June 30, 2001 (or such
       later date not to exceed two 30 day extensions as is mutually agreed to
       by the Company and the Placement Agent). The date on which the Initial
       Closing occurs is hereinafter referred to as the "Initial Closing Date;"
       the date or dates on which the subsequent closing or closings occur are
       hereinafter referred to as the "Additional Closing Date;" and the Initial
       Closing Date and Additional Closing Date(s) are sometimes hereinafter
       referred to collectively as the "Closing Date," the last of which shall
       be referred to herein as the "Final Closing Date." On each Closing Date
       the Company shall deliver to the Placement Agent, on behalf of the
       Subscribers, the certificates representing the Shares and Warrants being
       purchased by the Subscribers on such Closing Date pursuant to Section 1
       of this Agreement, against payment therefore, and a check or wire
       transfer in payment of the amounts set forth in Section 4 below. In the
       event of termination of the Offering contemplated herein, this Agreement,
       other

<PAGE>
GunnAllen Financial, Inc.
March 1, 2001
Page 3

       than Sections 9 and 10 hereof, shall be automatically terminated and
       neither party shall have any further obligation to the other party under
       this Agreement other than as expressly set forth in this Agreement.

       4. Compensation of Placement Agent. As compensation for its services
rendered as Placement Agent under this Agreement, the Placement Agent shall
receive the following compensation:

              a. A sales commission equal to ten percent (10%) and reimbursement
       of out-of-pocket expenses not to exceed three percent (3%) for actual
       expenses incurred in connection with the Offering (of which $12,500 shall
       be paid in advance on the execution of this Agreement) of the aggregate
       Gross Proceeds (as hereinafter defined) of the Units sold by the Company
       (such Units referred to hereinafter as the "Placed Units"), payable by
       check or wire transfer from the Company on each Closing Date. "Gross
       Proceeds" is defined as the total price paid by Subscribers for the
       Units.

              b. A sales commission equal to five percent (5%) and reimbursement
       of out-of-pocket expenses not to exceed two percent (2%) for actual
       expenses incurred in connection with the Institutional Placement.

              c. The Placement Agent shall be granted a performance warrant (the
       "Agent Warrant") to purchase shares of the Company's common stock at an
       exercise price of $1.50 per share. The number of shares subject to the
       Agent Warrant will equal: (i) ten percent (10%) of the total number of
       Shares sold in the Offering on an as-converted (or as-exercised) to
       common basis, not to exceed 200,000 shares, and (ii) five percent (5%) of
       the total number of shares sold (or number of shares on an as converted
       basis if in the form of convertible securities) in the Institutional
       Placement . The Agent Warrant will have a term of four (4) years and is
       exercisable beginning one year from the date of issuance (which shall be
       the Final Closing Date). The Agent Warrant will contain standard
       antidilution protection and registration provisions, including
       "piggyback" and "demand" registration rights on the same terms contained
       in the Warrants, and in addition shall contain a provision for "cashless
       exercise."

       5. Representations and Warranties of the Company. The Company represents
and warrants to, and agrees with, the Placement Agent that:

              a. Memorandum. The Company shall prepare the Memorandum, which may
       be supplemented from time to time and approved by the Placement Agent.
       The Memorandum shall contain information, accurate as of the date
       specified therein, of the general kind specified by applicable statutes
       and regulations, including without limitation:

              i.     Terms of the Offering;

              ii.    A description of the Units;

              iii.   A description of the business conducted by the Company;

              iv.    The financial condition of the Company;

              v.     Past material activities of the Company;

              vi.    Commissions and compensation to be paid to the Placement
                     Agent in connection with the Offering;

              vii.   Disclosure of material contracts, agreements or other
                     business arrangements, which affect or are related to the
                     business conducted and to be conducted by the Company;

<PAGE>
GunnAllen Financial, Inc.
March 1, 2001
Page 4

              viii.  Information regarding the Company, its management, material
                     obligations, liabilities, any pending or threatened
                     lawsuits or proceedings, and recent material adverse
                     changes in its financial condition; and

              ix.    Any appropriate legends and such other information or
                     material as the Placement Agent may deem necessary or
                     desirable to be included therein.

              The Memorandum, including all exhibits thereto, as of its date and
       at all times subsequent thereto up to and including the Final Closing
       Date, does not (as of the date hereof) and will not (as of any such
       subsequent date) include any untrue statement of a material fact, or omit
       to state any material fact required to be stated therein or necessary to
       make the statements therein, in light of the circumstances in which they
       were made, not misleading.

              b. Additional Information. The Company has provided, and shall
       provide to the Placement Agent, such information, documents and
       instruments as may be reasonably requested in order to comply with
       Section 4(2) of the Act and Reg D for an offer made to Accredited
       Investors.

              c. Organization; Good Standing. The Company is a corporation duly
       incorporated and validly existing under the laws of the State of
       Minnesota, with requisite corporate power and authority to own or lease,
       as the case may be, and operate its properties and to conduct its
       business as described in the Memorandum. The Company is duly qualified to
       do business as a foreign corporation and is in good standing in all
       jurisdictions wherein such qualification is necessary and where failure
       so to qualify could have a material adverse effect on the financial
       condition, results of operations, business or properties of the Company.

              d. Governmental Authority. Except for the filing of Form D under
       the Act and other than as may be required under applicable state
       securities or Blue Sky laws, no permit, authorization, approval, consent,
       order, registration, certification or license (collectively, "Permits")
       of any court or governmental agency or body, domestic or foreign, is
       required for the valid authorization, issuance, sale and delivery (in the
       manner contemplated hereby and by the Memorandum) of the Units or the
       Agent Warrant to the Placement Agent and/or the Subscribers and the
       consummation by the Company of the transactions contemplated by this
       Agreement, the Units, the Agent Warrant and the Subscription Agreements
       in the form annexed as part of the Memorandum.

              e. Corporate Authorization. The Company has the requisite
       corporate power and authority, to execute, deliver and perform this
       Agreement, the Subscription Agreements, the Units, and the Agent Warrant
       (such Subscription Agreements, Registration Rights Agreements, Units, and
       Agent Warrant hereinafter referred to collectively as the "Transaction
       Documents"), and to consummate the transactions contemplated hereby and
       thereby. The execution, delivery and performance of this Agreement and
       the Transaction Documents, the consummation by the Company of the
       transactions herein and therein contemplated and the compliance by the
       Company with the terms of this Agreement and the Transaction Documents
       and the issuance and sale of the Units, have been duly authorized by all
       necessary corporate action, and each of this Agreement and the
       Transaction Documents has been or will be as applicable, duly executed
       and delivered by the Company. Each of this Agreement and the Transaction
       Documents, when executed by the parties thereto, is a valid and binding
       obligation of the Company, enforceable in accordance with its terms,
       subject, as to enforcement of remedies, to applicable bankruptcy,
       insolvency, reorganization, moratorium and other laws affecting the
       rights of creditors generally and the discretion of courts in granting
       equitable remedies and except that enforceability of the

<PAGE>
GunnAllen Financial, Inc.
March 1, 2001
Page 5

       indemnification and contribution provisions set forth thereunder and
       hereunder may be limited by the federal securities laws of the United
       States or public policy relating thereto. The execution, delivery and
       performance of this Agreement and the Transaction Documents by the
       Company, the consummation by the Company of the transactions herein and
       therein contemplated in the manner described by the Memorandum and the
       compliance by the Company with the terms of this Agreement and the
       Transaction Documents, do not, and will not, with or without the giving
       of notice or the lapse of time, or both (i) result in any violation of
       the Articles of Incorporation or Bylaws of the Company; or (ii) to the
       Company's knowledge, violate any existing applicable law, rule,
       regulation, judgment, order or decree of any governmental agency or
       court, domestic or foreign, having jurisdiction over the Company or any
       of its properties or businesses.

              f. Capitalization. The Company had, at the date or dates indicated
       in the Memorandum, a duly authorized and outstanding capitalization as
       set forth in the Memorandum. The outstanding Common Shares and
       outstanding options and warrants to acquire Common Shares have been duly
       authorized and validly issued. All such outstanding Common Shares are
       fully paid and nonassessable. The outstanding options and warrants to
       acquire Common Shares constitute the valid and binding obligations of the
       Company, enforceable in accordance with their terms. None of such
       outstanding Common Shares or options or warrants to acquire Common Shares
       have been issued in violation of the preemptive rights of any security
       holder of the Company. None of the holders of such outstanding Common
       Shares is subject to personal liability solely by reason of being such a
       holder. The offers and sales of such outstanding Common Shares and
       outstanding options and warrants to acquire Common Shares were at all
       relevant times either registered under the applicable securities laws of
       the United States and the applicable state securities or Blue Sky laws,
       or exempt from such registration requirements. The authorized Common
       Shares and outstanding options and warrants to acquire Common Shares
       conform in all material respects to the descriptions thereof contained in
       the Memorandum. Except as set forth in the Memorandum, on the Closing
       Date there will be no outstanding options or warrants for the purchase
       of, or other outstanding rights to acquire Common Shares or securities
       convertible into Common Shares.

              g. Authorization of Shares, Warrants and Other Securities. The
       issuance and sale of the Units and the Agent Warrant have been duly
       authorized. The issuance of the Units and Agent Warrant under the
       circumstances described in, and pursuant to the terms of, the Memorandum
       have been duly authorized and, when issued and delivered in accordance
       with the provisions of the Memorandum, the Subscription Agreements, the
       Units and the Agent Warrant, will be validly issued, fully paid and
       nonassessable, and the holders thereof will not be subject to personal
       liability solely by reason of being such holders.

              h. Reg D Qualification; Offering Documents. The Memorandum and
       related documents (the "Offering Documents") conform in all material
       respects with the requirements of Section 4(2) of the Securities Act and
       Reg D promulgated thereunder.

              i. Finder's Fee. Other than any payments to the Placement Agent
       hereunder, the Company has not incurred any liability for any finder's
       fees or similar payments in connection with the transactions herein
       contemplated.

              Any certificate signed by an officer of the Company and delivered
       to the Placement Agent, or to counsel for the Placement Agent, shall be
       deemed to be a representation and warranty by the Company to the
       Placement Agent as to the matters covered thereby.

<PAGE>

GunnAllen Financial, Inc.
March 1, 2001
Page 6

              j. Right of First Refusal. For a period of two (2) years following
       the successful closing of at least $2 million in the Offering or in the
       Institutional Placement, the Placement Agent shall have a right of first
       refusal to sell for the account of the Company, if the Company engages an
       agent or underwriter in such transaction, any equity or debt securities
       with respect to which the Company may seek a public offering up to $10
       million for cash or private offering up to $5 million for cash, if the
       Placement Agent agrees to sell such securities on substantially the same
       terms and conditions as offered by another broker/dealer, including
       number of shares or aggregate principal amount, price per security, sales
       commission and method of distribution (e.g. firm commitment underwriting
       or best efforts). Upon effectiveness of the foregoing right of first
       refusal, all prior rights of first refusal, rights of first offer or
       similar rights provided by the Company shall immediately terminate. The
       right of first refusal described in this paragraph terminates upon the
       earliest of (i) the execution by the Company of an agreement with a
       licensed agent or underwriter regarding a private financing in excess of
       $5 million or a public financing in excess of $10 million; (ii) Placement
       Agent's failure to exercise its right of first refusal with respect to
       any financing transaction in which it has a right of first refusal; (iii)
       the Company registers a class of securities under the Securities Exchange
       Act of 1934; and (iv) the Company raises at least $5 million in debt or
       equity financing without the assistance of any licensed agent or
       underwriter. If the Company proceeds with another broker-dealer in a
       private financing transaction in excess of $5 million or in a public
       financing transaction in excess of $10 million during the two (2) year
       period beginning on the date referenced above, the Company will use
       reasonable efforts to provide the Placement Agent the right to
       participate as a selling group member to place up to ten percent (10%) of
       the offering.

       6. Covenants.

              a. Memorandum. The Company will furnish the Placement Agent,
       without charge, during the Offering, as many copies of the Memorandum
       (and any amended or supplemental Memorandum) as the Placement Agent may
       reasonably request. If during the offering period any event occurs as the
       result of which the Memorandum, as then amended or supplemented, would
       include an untrue statement of a material fact, or omit to state a
       material fact necessary in order to make the statements made in light of
       the circumstances in which they were made not misleading, or if it shall
       be necessary to amend or supplement the Memorandum to comply with
       applicable law, the Company will forthwith notify the Placement Agent
       thereof, and furnish to the Placement Agent in such quantities as may be
       reasonably requested, an amendment or amended or supplemented Memorandum
       which corrects such statements or omissions or causes the Memorandum to
       comply with applicable law.

              b. Blue Sky Filings. The Company will file all documents required
       by federal and state blue sky laws in connection with the Offering and
       shall provide Placement Agent with copies of the same.

              c. Use of Proceeds. The Company will use the proceeds from the
       sale contemplated herein only for the purposes described in the
       Memorandum. Through and including June 30, 2002, the Company agrees to
       furnish the Placement Agent monthly statements of income and cash flow
       specifically indicating the use of proceeds. The Placement Agent
       acknowledges and agrees that such information is of a confidential nature
       and agrees not to disclose such information to any person without the
       prior consent of the Company.

<PAGE>

GunnAllen Financial, Inc.
March 1, 2001
Page 7

              d. Benefit Plan Approval. The Company will use its reasonable best
       efforts to execute all documents necessary, as recommended by the
       Placement Agent, to make this offering eligible for benefit plans
       including IRA's, Pension and Profit Sharing Plans, etc.

              e. Business Plan. The Company shall prepare and furnish the
       Placement Agent an updated business plan and annual budget approved by
       the Company's Board of Directors, including a detailed use of proceeds
       raised in the Offering. This plan shall be updated quarterly. Within 30
       days after each year end, the Company shall prepare and furnish the
       Placement Agent a budget and business plan for the next fiscal year,
       prepared monthly, including balance sheets and sources and applications
       of funds, statements for such months, and as soon as prepared any other
       budgets or revised budgets prepared by the Company. The Placement Agent
       acknowledges and agrees that such information is of a confidential nature
       and agrees not to disclose such information to any person without the
       prior consent of the Company.

              f. Board Meetings. Commencing as of the date of effectiveness of
       this agreement and until the earlier of (i) the date three (3) years from
       the date of the Final Closing and (ii) the date on which the Placement
       Agent's right of first refusal described in Section 5.j. is terminated,
       the Placement Agent may designate a representative of the Placement Agent
       to attend meetings of the Company's Board of Directors. Attendance at any
       such meeting of the Board of Directors is subject to execution and
       delivery by such representative of a nondisclosure agreement in a form
       acceptable to the Company.

              g. Reg D Compliance. The Company will comply in all respects with
       the terms and conditions of Reg D and applicable state securities laws
       with respect to the Offering and the sale of the Units only to Accredited
       Investors.

       7. Representations and Warranties of the Placement Agent. The Placement
Agent represents and warrants to, and agrees with, the Company that:

              a. No General Solicitation. No form of general solicitation or
       general advertising has been or will be used by the Placement Agent or
       any of its sub-agents, affiliates or representatives in connection with
       the offer and sale of any of the Units or securities in the Institutional
       Placement, including, but not limited to, articles, notices or other
       communication published in any newspaper, magazine, or similar medium or
       broadcast over television or radio, or any seminar or meeting whose
       attendees have been invited by any general solicitation or general
       advertising.

              b. Accredited Investors Only. In connection with the sale of the
       Units, the Placement Agent and its sub-agents will solicit offers to buy
       the Units only from, and will offer to sell the Units only to, Accredited
       Investors.

              c. Delivery of Memorandum. Prior to the sale by the Company to any
       purchaser of any of the Units pursuant hereto, the Placement Agent and
       its sub-agents will furnish to such purchaser a copy of the Memorandum
       (and any amendment thereof or supplement thereto that the Company shall
       have furnished to the Placement Agent prior to the date of such sale).
       The Placement Agent and its sub-agents will not utilize any sales
       materials other than the Memorandum and will not make any statements
       concerning the Company other than information contained in the
       Memorandum, unless prior written approval is obtained from the Company
       and its legal counsel and copies of such materials are delivered to the
       Company and its legal counsel.

<PAGE>

GunnAllen Financial, Inc.
March 1, 2001
Page 8

              d. Licensure. The Placement Agent is, and any sub-agents will be,
       licensed as broker-dealers, authorized to conduct offerings of the sort
       contemplated hereby by the Securities and Exchange Commission and the
       blue sky authorities of each other state in which the Units will be
       offered. The Placement Agent and its sub-agents are members in good
       standing of the National Association of Securities Dealers, Inc. and to
       the Placement Agent's knowledge, no proceedings are pending or threatened
       to revoke or limit any such status of the Placement Agent or any
       sub-agent.

              e. Compliance. The Placement Agent and its sub-agents will comply
       with the provisions of the Act, the Exchange Act and the respective rules
       and regulations thereunder in connection with the Offering and the
       Institutional Placement.

              f. Sub-agents. The Placement Agent will use its best efforts to
       ensure that all sub-agents are in compliance with the above
       representations.

              g. Reliance on Representations. The Company and, for purposes of
       the opinions that may be delivered to the Placement Agent pursuant to
       this Agreement, counsel to the Company will rely upon the accuracy and
       truth of the foregoing representations and the Placement Agent hereby
       consents to such reliance.

       8. Indemnification and Contribution.

              a. Indemnification by the Company. In connection with the Offering
       and sale of the Units by the Placement Agent, the Company shall
       indemnify, save, defend, and hold the Placement Agent and its officers,
       directors, employees, agents, and each person, if any, who controls the
       Placement Agent (within the meaning of either the Act or the 1934 Act)
       harmless from and against any and all losses, claims, damages, demands,
       expenses, and liabilities, including but not limited to interest,
       penalties, court costs, and attorneys' fees (collectively, "Losses"),
       arising out of or in connection with (i) any untrue statement or alleged
       untrue statement of a material fact contained (A) in the Memorandum, or
       (B) in any Blue Sky Application, but only to the extent, that such untrue
       statement or alleged untrue statement or omission or alleged omission was
       made in reliance upon and in conformity with written information
       furnished to the Company by the Placement Agent specifically for use with
       reference to the Placement Agent in the preparation of the Memorandum or
       any such Blue Sky Application, or (ii) the omission or alleged omission
       to state in the Memorandum or in any Blue Sky Application a material fact
       required to be stated therein or necessary in order to make the
       statements therein not misleading, unless such untrue statement or
       omission or such alleged untrue statement or omission was made in
       reliance upon and in conformity with written information supplied to the
       Company by or on behalf of the Placement Agent expressly for use in the
       Memorandum (or any amendment or supplement thereto).

              b. Indemnification by the Placement Agent. The Placement Agent
       agrees to indemnify and hold harmless the Company and its officers,
       directors, employees, agents, and each person, if any, who controls the
       Company within the meaning of the Act and the Exchange Act against any
       Losses, to which the Company or such persons may become subject, under
       the Act or otherwise insofar as such losses, claims, damages or
       liabilities (or actions in respect thereof) arise out of or are based
       upon (i) any untrue statement or alleged untrue statement of a material
       fact contained (A) in the Memorandum, or (B) in any Blue Sky Application,
       or (ii) the omission or alleged omission to state in the Memorandum or in
       any Blue Sky Application a

<PAGE>

GunnAllen Financial, Inc.
March 1, 2001
Page 9

       material fact required to be stated therein or necessary in order to make
       the statements therein not misleading, but, with respect to clause (i) or
       (ii) above, only to the extent that such untrue statement or alleged
       untrue statement or omission or alleged omission was made in reliance
       upon and in conformity with written information furnished to the Company
       by the Placement Agent specifically for use with reference to the
       Placement Agent in the preparation of the Memorandum or any such Blue Sky
       Application, or (iii) any unauthorized verbal or written representation
       in connection with the Offering and sale of the Units made by the
       Placement Agent, its agents, employees, or affiliates; any act by or on
       behalf of the Placement Agent or its agents, employees, or affiliates in
       connection with the Offering and sale of the Units and in violation of
       the Securities Laws or rules and regulations thereunder.

              c. Claims for Indemnification. The indemnified party shall give
       prompt notice to the indemnifying party of any action commenced against
       it in respect of which indemnity may be sought hereunder, and the Company
       shall have the right to assume the defense of any action against the
       Placement Agent for which indemnity is sought. The indemnified party may
       participate at its own expense in the defense of such action. In no event
       shall the indemnifying party be liable for the fees and expenses of more
       than one counsel for all indemnified parties in connection with any one
       action or separate but similar or related actions in the same
       jurisdiction arising out of the same general allegations or
       circumstances.

              d. Contribution. In connection with the Offering, if the
       indemnification provided for in Sections 8.a or 8.b hereof is
       unenforceable although applicable in accordance with its terms, then the
       parties agree that, in order to provide for just and equitable
       contribution, they each shall contribute to the aggregate Losses
       contemplated by such indemnity agreement incurred by each of them in an
       amount bearing the same proportionate relationship to the total amount of
       such Losses as the net proceeds from the Offering in the case of the
       Company, or the aggregate total of all commissions and fees in the case
       of the Placement Agent, bears to the total gross proceeds from the
       Offering; provided, however, that no person guilty of fraudulent
       misrepresentation (within the meaning of Section 11(f) of the Act) shall
       be entitled to contribution from any person who was not guilty of such
       fraudulent misrepresentation. For purposes of this Section 8.d, each
       person, if any, who controls an unindemnified party or the Company within
       the meaning of either the Act or the 1934 Act shall have the same right
       to contribution as the indemnified party.

       9. Representations and Agreements to Survive Delivery. All
representations, warranties and agreements of the Company and of the Placement
Agent herein will survive the delivery and execution hereof and the Closings
hereunder, and shall remain operative and in full force and effect regardless of
any investigation made by or on behalf of the Placement Agent or any person who
controls the Placement Agent within the meaning of the Act, or by the Company or
any person who controls the Company within the meaning of the Act, and will
survive delivery of the securities constituting the Shares hereunder and any
termination of this Agreement.

       10. Termination. The Placement Agent will have the right to terminate
this Agreement by giving written notice as herein specified, at any time, at or
prior to the Initial Closing Date:

              a. If the Company shall have failed, refused, or been unable at or
       prior to the date of termination of this Agreement, to perform any of its
       material obligations hereunder; or

<PAGE>

GunnAllen Financial, Inc.
March 1, 2001
Page 10

              b. There has occurred an event, which materially and adversely
       affects the value of the Units (or any components thereof) or otherwise
       renders the purchase of such Units inadvisable.

       If the Placement Agent elects to terminate this Agreement pursuant to any
of subsections (a) or (b) of this Section 10, the Company will be notified
promptly by telephone or telecopier, and such notification will be confirmed by
notice as provided for in Section 11 hereof.

       This Agreement shall automatically terminate on June 30, 2001, subject to
extension by mutual agreement of the Company and the Placement Agent for up to
two thirty (30) day periods.

       Notwithstanding the foregoing, nothing contained in this Section 10 shall
imply that the Placement Agent has undertaken any commitment to sell the Units
other than to use its best efforts.

       11. Notices. Any notice hereunder shall be in writing and shall be
effective only upon receipt (including confirmed receipt of facsimile
transmission) and shall be delivered in person, sent by telecopier or mailed by
certified or registered mail, postage prepaid, return receipt requested, to the
appropriate party or parties, at the following addresses: if to the Placement
Agent, to GunnAllen Financial, Inc., 1715 North Westshore Blvd., Suite 700,
Tampa, Florida 33607, Attention: Richard Frueh (telecopier no. 813-282-1275); if
to the Company, to Redline Performance Products, Inc., 2520 Fortune Way, Vista,
California 92083, Attention: President (telecopier no. 760-598-0167) or, in each
case, to such other address as the parties may hereinafter designate by like
notice.

       12. Parties. This Agreement will inure to the benefit of and be binding
upon the Placement Agent, the Company and their respective successors and
assigns. This Agreement is intended to be, and is for the sole and exclusive
benefit of the parties hereto and the persons described in subsections 8(a) and
8(b) hereof, and their respective successors and assigns, and for the benefit of
no other person, and no other person will have any legal or equitable right,
remedy or claim under, or in respect of this Agreement. No purchaser of any of
the Units will be construed as successor or assign merely by reason of such
purchase.

       13. Amendment and/or Modification. Neither this Agreement, nor any term
or provision hereof, may be changed, waived, discharged, amended, modified or
terminated orally, or in any manner other than by an instrument in writing
signed by each of the parties hereto.

       14. 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.

       15. Validity. In case any term of this Agreement will be held invalid,
illegal or unenforceable, in whole or in part, the validity of any of the other
terms of this Agreement will not in any way be affected thereby.

       16. Waiver of Breach. The failure of any party hereto to insist upon
strict performance of any of the covenants and agreements herein contained, or
to exercise any option or right herein conferred in any one or more instances,
will not be construed to be a waiver or relinquishment of any such option or
right, or of any other covenants or agreements, and the same will be and remain
in full force and effect.

<PAGE>

GunnAllen Financial, Inc.
March 1, 2001
Page 11

       17. Entire Agreement. This Agreement contains the entire agreement and
understanding of the parties with respect to the entire subject matter hereof,
and there are no representations, inducements, promises or agreements, oral or
otherwise, not embodied herein. Any and all prior discussions, negotiations,
commitments and understanding relating to the Offering are superseded hereby.
There are no conditions precedent to the effectiveness of this Agreement other
than as stated herein, and there are no related collateral agreements existing
between the parties that are not referred to herein.

       18. Counterparts. This Agreement may be executed in counterparts and each
of such counterparts will for all purposes be deemed to be an original, and such
counterparts will together constitute one and the same instrument.

       19. Governing Law, Jurisdiction and Venue. This Agreement will be deemed
to have been made and delivered in the State of Florida and will be governed as
to validity, interpretation, construction, effect and in all other respects by
the internal laws of the State of Florida. The Company (a) agrees that any legal
suit, action or proceeding arising out of or relating to this Agreement will be
instituted exclusively in Florida State Court, County of Hillsborough, or in the
United States District Court for the Middle District of Florida, Tampa Division
(collectively, the "Florida Courts") (b) waives any objection which the Company
may have now or hereafter to the venue of any such suit, action or proceeding,
and (c) irrevocably consents to the jurisdiction of the Florida Courts in any
such suit, action or proceeding.

       20. Company Approval. This Agreement is subject to, and will not become
effective until, the Company's Board of Directors has authorized the
transactions described herein and the execution of this Agreement.

       If the foregoing correctly sets forth our understanding, please so
indicate in the space provided below for that purpose, whereupon this letter
will constitute a binding agreement between us.

REDLINE PERFORMANCE PRODUCTS, INC.

By:  /s/ Kent Harle
     --------------------------------------
     Name:  Kent Harle
     Title:    President and Chief Executive Officer

CONFIRMED AND ACCEPTED:

GUNNALLEN FINANCIAL, INC.

By:  /s/ Richard A. Frueh
     --------------------------------------
     Name:  Richard A. Frueh
            -------------------------------
     Title:  CEO
             ------------------------------

<PAGE>

                       Redline Performance Products, Inc.
                                2520 Fortune Way
                                 Vista, CA 92083

June 28, 2001

GunnAllen Financial, Inc.
1715 North Westshore Boulevard., Suite 700
Tampa, Florida  33607

Gentlemen:

         As you know, Redline and GunnAllen have entered into an agency
agreement dated March 1, 2001 (the "Agreement") pursuant to which GunnAllen is
acting as Redline's agent in the sale of units of preferred stock and warrants
in the Offering, as that term is defined in the Agreement. To date, GunnAllen
has raised approximately $600,000 of the $3,000,000 proposed maximum proceeds of
the Offering. Redline and GunnAllen acknowledge that Redline's aggregate debt
and equity financing needs are approximately $7,000,000.

         We have discussed the positive developments that have taken place at
Redline over the past several months, and of the need for representatives of
GunnAllen and Redline to increase their collective efforts to raise the capital
needed by Redline to produce and sell snowmobiles this year. Significant
progress has been made. Redline and GunnAllen will continue to use their best
efforts to identify and close persons willing to invest in Redline. Redline and
GunnAllen understand and agree that persons who desire to provide large amounts
of capital and are identified by representatives of Redline will likely not be
willing to invest in the current Offering, will negotiate their own loan or
investment transactions outside the terms of the current Offering, and will be
unwilling to pay any compensation to GunnAllen. In addition, such persons or
others identified by Redline may require compensation for making introductions
or otherwise assisting Redline in raising capital.

         Redline will continue to refer leads of investors seeking to invest
$200,000 or less to GunnAllen, but will independently negotiate the terms of any
investment in excess of $200,000. GunnAllen understands and agrees that unless
persons identified by Redline seeking to make loans to or to invest in Redline
in amounts in excess of $200,000 are identified by GunnAllen, GunnAllen will not
receive any compensation upon the completion of any investment or loan by any
such person. GunnAllen also understands and agrees that Redline may engage one
or more persons to identify and close investment or loan transactions, and that
such persons will receive compensation to do so which may be similar to
GunnAllen's compensation described in the Agreement. GunnAllen and Redline agree
that the foregoing are necessary to meet Redline's financing needs.

<PAGE>

         The Agreement and the Offering, by their terms, expire on June 30,
2001. Redline and GunnAllen are committed to their collective capital-raising
efforts and agree to extend the term of the Agreement and of the Offering,
through and including July 30, 2001. This letter amends the terms of the
Agreement and will be referred to as amendment number one to the Agreement.

/s/ Kent Harle
--------------------------------------------
Kent Harle, President
Redline:  Redline Performance Products, Inc.

Agreed to and accepted:

GunnAllen:  GunnAllen Financial, Inc.

By:  /s/ Howard A. Davis
     ---------------------------------------
Its:  Executive Vice President
      --------------------------------------

                                       2.

<PAGE>
                       Redline Performance Products, Inc.
                                2520 Fortune Way
                                 Vista, CA 92083

July 30, 2001

GunnAllen Financial, Inc.
1715 North Westshore Boulevard., Suite 700
Tampa, Florida 33607

Gentlemen:

         As you know, Redline and GunnAllen have entered into an agency
agreement dated March 1, 2001, as amended, (the "Agreement") pursuant to which
GunnAllen is acting as Redline's agent in the sale of units of preferred stock
and warrants in the Offering, as that term is defined in the Agreement, pursuant
to a Confidential Private Placement Memorandum dated March 20, 2001 (the
"Memorandum"). The Memorandum provides that the Offering will terminate on the
date 90 days from the date of the Memorandum (which was on June 18, 2001),
subject to up to two 30-day extensions. Redline and GunnAllen previously agreed
to extend the term of the Offering and the Agreement through and including July
30, 2001. Redline and GunnAllen are committed to their collective
capital-raising efforts and, as permitted in the Agreement, agree to extend the
term of the Agreement and of the Offering, through and including August 17, 2001
(the date 150 days from the date of the Memorandum). This letter amends the
terms of the Agreement and will be referred to as amendment number two to the
Agreement.

/s/ Kent Harle
--------------------------------------------
Kent Harle, President
Redline:  Redline Performance Products, Inc.

Agreed to and accepted:

GunnAllen:  GunnAllen Financial, Inc.

By: /s/ Howard Davis
    ----------------------------------------
  Its:  Executive V.P.
       -------------------------------------

<PAGE>

                       Redline Performance Products, Inc.
                                2520 Fortune Way
                                 Vista, CA 92083

August __, 2001

GunnAllen Financial, Inc.
1715 North Westshore Boulevard., Suite 700
Tampa, Florida 33607

Gentlemen:

         As you know, Redline and GunnAllen have entered into an agency
agreement dated March 1, 2001, as amended, (the "Agreement") pursuant to which
GunnAllen is acting as Redline's agent in the sale of units of preferred stock
and warrants in the Offering, as that term is defined in the Agreement, pursuant
to a Confidential Private Placement Memorandum dated March 20, 2001 (the
"Memorandum"). The Memorandum provides that the Offering will terminate on the
date 90 days from the date of the Memorandum (which was on June 18, 2001),
subject to up to two 30-day extensions. Redline and GunnAllen previously agreed
to extend the term of the Offering and the Agreement through and including
August 17, 2001. The Agreement and the Offering will expire by their terms on
August 18, 2001 unless extended.

         Redline and GunnAllen are committed to their collective capital-raising
efforts and hereby agree to extend the term of the Agreement and of the Offering
for an additional 60 days, through and including October 16, 2001. Either party
may terminate the Agreement upon 15 days' written notice. Redline and GunnAllen
agree to provide each investor purchasing Units in the Offering after August 17,
2001 with a supplement to the Memorandum. In addition, Redline and GunnAllen
agree that GunnAllen's engagement by Redline will be on a non-exclusive basis
for the remainder of the term of the Offering and the Agreement. Redline may
engage the services of one or more additional agents to assist Redline in the
sale of its securities and may accept investments from investors regardless of
whether such sales were completed with the assistance of any sales agent. Any
such engagement or investment will be completed without compensation to
GunnAllen. This letter amends the terms of the Agreement and will be referred to
as amendment number three to the Agreement.

/s/ Kent Harle
--------------------------------------------
Kent Harle, President
Redline:  Redline Performance Products, Inc.

Agreed to and accepted:

GunnAllen:  GunnAllen Financial, Inc.

By:  /s/ Richard A. Frueh
    ----------------------------------------
  Its:  CEO
        ------------------------------------

<PAGE>

                       Redline Performance Products, Inc.
                                2520 Fortune Way
                                 Vista, CA 92083

October 16, 2001

GunnAllen Financial, Inc.
1715 North Westshore Boulevard., Suite 700
Tampa, Florida 33607

Gentlemen:

         As you know, Redline and GunnAllen have entered into an agency
agreement dated March 1, 2001, as amended, (the "Agreement") pursuant to which
GunnAllen is acting as Redline's agent in the sale of units of preferred stock
and warrants in the Offering, as that term is defined in the Agreement, pursuant
to a Confidential Private Placement Memorandum dated March 20, 2001 (the
"Memorandum"). The Memorandum provides that the Offering will terminate on the
date 90 days from the date of the Memorandum (which was on June 18, 2001),
subject to up to two 30-day extensions. Redline and GunnAllen previously agreed
to extend the term of the Offering and the Agreement through and including
October 16, 2001. The Agreement and the Offering will expire by their terms on
October 16, 2001 unless extended.

         Redline and GunnAllen are committed to their collective capital-raising
efforts and hereby agree to extend the term of the Agreement and of the Offering
for an additional 60 days, through and including December 15, 2001. Redline and
GunnAllen agree to provide each investor purchasing Units in the Offering after
October 16, 2001 with Supplement No. 2 to the Memorandum, which will supercede
and replace Supplement No. 1. This letter amends the terms of the Agreement and
will be referred to as amendment number four to the Agreement.

/s/ Kent Harle
--------------------------------------------
Kent Harle, President
Redline:  Redline Performance Products, Inc.

Agreed to and accepted:

GunnAllen: GunnAllen Financial, Inc.

By:  /s/ Howard Davis
    ----------------------------------------
  Its:   Executive V.P.
       -------------------------------------

<PAGE>

                       Redline Performance Products, Inc.
                                2510 Commerce Way
                                 Vista, CA 92083

March 6, 2002

GunnAllen Financial, Inc.
1715 North Westshore Boulevard., Suite 700
Tampa, Florida 33607

Gentlemen:

         As you know, Redline and GunnAllen have entered into an agency
agreement dated March 1, 2001, as amended, (the "Agreement") pursuant to which
GunnAllen is acting as Redline's agent in the sale of units of preferred stock
and warrants in the Offering, as that term is defined in the Agreement, pursuant
to a Confidential Private Placement Memorandum dated March 20, 2001 (the
"Memorandum"). The Memorandum provides that the Offering was to terminate on the
date 90 days from the date of the Memorandum (which was on June 18, 2001),
subject to up to two 30-day extensions. Redline and GunnAllen previously agreed
to extend the term of the Offering and the Agreement through and including
October 16, 2001, and then again to December 15, 2001. The Agreement and the
Offering expired by their terms on December 15, 2001.

         Redline and GunnAllen are committed to their collective capital-raising
efforts and hereby agree, effective December 15, 2001, to extend the term of the
Agreement and of the Offering through and including May 31, 2002. Until an
updated Memorandum is completed, Redline and GunnAllen agree to provide each
investor purchasing Units in the Offering after December 15, 2001 with
Supplement No. 3 to the Memorandum, which will supercede and replace Supplement
Nos. 1 and 2. Thereafter, Redline and GunnAllen will provide each investor
purchasing Units in the Offering with the updated Memorandum. This letter amends
the terms of the Agreement and will be referred to as amendment number five to
the Agreement.

/s/ Kent Harle
--------------------------------------------
Kent Harle, President
Redline: Redline Performance Products, Inc.

Agreed to and accepted by:

GunnAllen: GunnAllen Financial, Inc.

By:  /s/ Howard A. Davis
    ----------------------------------------
  Its:  Executive Vice President
       -------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]