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                                                                    EXHIBIT 10.3

                   AGREEMENT AND PLAN OF BUSINESS COMBINATION

THIS AGREEMENT entered into this 15th day of Sept. 2000, by and between American
Eagle Motorcycle Company Inc., a California corporation (AEM), and Yankee
Engineuity Products Division, a California sole proprietorship (YEPD);

WITNESSETH, WHEREAS AEM is a motorcycle manufacturing corporation which for some
time has been in the process of evaluating various businesses for acquisition;
and YE is a distributor of its own line of Billet motorcycle parts; and

FURTHER WHEREAS, AEM and YEPD mutually desire to enter into a business
combination whereby AEM will purchase the Motorcycle Products Division of YEPD.

NOW THEREFORE, for valuable consideration and upon the mutual representations,
warranties, covenants, conditions and agreements contained herein, the parties
agree as follows:

     1. Plan of Business Combination - It is the agreement and intention of all
        parties hereto that all of the outstanding ownership of YEPD shall be
        exchanged hereunder solely for voting common stock of AEM, and it is
        also the intention and understanding of all parties hereto that this
        transaction shall qualify as a tax-free reorganization under Section
        368(a)(1)(B) of the Internal Revenue Code of 1954, as amended, and any
        related sections there under.

     2. Restricted Securities - All common shares of AEM issued incident to this
        business combination shall be "restricted securities" as defined in
        relevant federal and state securities laws and regulations, basically
        meaning that such shares will not be registered under either state or
        federal securities laws and will be taken by the owners of YEPD for
        long-term investment are not with a present view toward further sale,
        disposition or transfer thereof; and accordingly any future transfer or
        disposition of such shares must either be (i) registered under relevant
        federal and state securities laws, or (ii) satisfy an appropriate
        exemption from such registration such as rule 144 of the Securities Act
        of 1933, as amended.

     3. Exchange of Securities - All parties hereto agree that all of the
        outstanding ownership of YEPD shall be exchanged for 32,500 common
        shares of AEM. Upon completion of this exchange of shares, YEPD shall
        become a wholly owned subsidiary of AEM.

     4. Delivery of Certificate - On the Closing date of this business
        combination, YEPD shall deliver all ownership documentation duly
        endorsed for transfer pursuant hereto, and simultaneously thereto AEM
        shall deliver certificates of AEM common shares to complete this
        transaction.

     5. This agreement shall be approved by each company as required by law.

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     6.  Conduct of Business - Between the date of this Agreement and the
         Closing Date hereof, YEPD shall conduct its business operations in a
         normal and customary manner in accordance with existing business
         operations in a normal and customary manner in accordance with existing
         business practices and policies.

     7.  Due Diligence Investigation - Between the date of this Agreement and
         the Closing date hereof, AEM and YEPD may directly make such
         investigation of each other and their respective business and
         operations, affairs and financial positions; and the officers of each
         corporation hereto shall furnish to each other whatever financial and
         operational data and other information with respect to each other as
         reasonably requested by the other party. Neither AEM nor YEPD shall
         disclose any private or confidential information on the other party,
         which was obtained or discovered in connection with their respective
         due diligence review and investigation of each other incident hereto.

     8.  Representations and Warranties of Parties - The parties jointly and
         severally represent and warrant to the other the following:
         a. AEM has outstanding capital stock of Approx. 1,582,500 common
            shares, and all common shares of AEM have been validly issued and
            are fully paid and nonassessable, and no such shares has been issued
            in violation of any preemptive or similar rights.
         b. AEM is a duly organized corporation validly existing and in good
            standing under the respective laws of the State of California, with
            full corporate power and authority to own and operate it's
            properties and assets and carry on any business presently and
            formerly conducted by it.
         c. YEPD is a properly organized sole proprietorship, validly existing
            and in good sanding under the laws of California, with full
            corporate power and authority to own and operate it's properties and
            assets and carry on any business presently and formerly conducted by
            it.
         d. This Agreement is a valid and binding agreement of each party
            hereto, and compliance with the terms of this Agreement by each
            party hereto will not result in (i) a breach or default under the
            Articles or Bylaws of either party or (ii) a breach or violation
            under any lien, pledge, security interest or other encumbrance on
            assets to which either party is subject.
         e. Neither company is subject to any pending litigation or governmental
            proceedings not reflected in their financial statements or otherwise
            disclosed to the other party incident to negotiating this Agreement.
         f. The Management of each company executing this Agreement is duly
            authorized to execute this Agreement on behalf of their respective
            corporation.
         g. All company record books, minute books and financial statements of
            each party in existence prior to the closing date shall be made
            available to the other party prior to closing of this business
            combination.
         h. As of the date hereof, and at Closing Date both companies hereto
            will have to the best of their knowledge and abilities, disclosed to
            each other all events, conditions and facts materially affecting the
            business and prospects of each company hereto.

     9.  Convenants of both parties - AEM and YEPD, both convenant, warrant and
agree that from the date hereof to closing date, each party hereto shall:

             (i)   Conduct its business and operations in the usual, normal and
                   ordinary course of business;

             (ii)  Neither party shall declare any cash or stock dividends: nor
                   shall they make any distribution by way of dividend,
                   redemption, or otherwise;

             (iii) Each party hereto agrees to approve this agreement as soon as
                   reasonably practicable after the date hereof.

     10. Survival of Representations - All representations, covenants and
warranties contained herein shall survive the Closing Date of this Agreement and
the consummation of the transactions hereby for two years from the date hereof.

     11. Closing - Upon the Closing of this Agreement, the following
transactions shall occur or have occurred, all of which shall be deemed to be
simultaneous:
         a.  YEPD shall have delivered to AEM all ownership documentation of
             YEPD, duly endorsed thereon for exchange pursuant to this
             agreement;
         b.  AEM shall deliver the required certificates of its common stock to
             YEPD or its assigns.
         c.  Each party hereto shall deliver at the Closing Date certified
             copies of resolutions of each party which adopted and approved this
             business combination;
         d.  The Effective Date of this business combination shall be the
             Closing Date hereof.

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     12. General

         (a). Notices - Any and all notices provided for in this Agreement shall
              be in writing and hand-delivered or sent by certified mail,
              directed as follows:

          To AEM:    Greg Spak
                     2350 Technology Pkwy.
                     Hollister, CA 95023

          To YEPD:   Duncan Keller
                     1520 A. West San Carlos
                     San Jose, CA 95126

         (b). Parties in Interest and Assignment - This Agreement shall inure
              to the benefit of and bind the parties hereto, and their
              respective successors, legal representatives and authorized
              assigns; provided, however, that no party hereto shall assign any
              interest herein without the express written consent of all other
              parties hereto.

         (c). Expenses - In the event this business combination is not
              consummated for any reason or purpose whatsoever, each party
              hereto shall pay its or his own expenses incident to negotiation
              of, preparation for or any other matters related hereto.

         (d). Waiver - Any failure on the part of a party hereto to comply with
              any term, obligation or condition of this Agreement may be waived
              in writing by the other parties hereto.

         (e). Governing Law - the laws of the State of California shall govern
              this Agreement.

         (f). Severability - If any part of this Agreement is deemed to be
              unenforceable, the balance of the Agreement shall remain in full
              force and effect.

         (g). Entire Agreement - This Agreement constitutes the entire agreement
              for this business combination, and supercedes and cancels any
              prior agreement or understanding, written or oral; and this
              Agreement cannot be modified or amended unless by mutual written
              consent of all parties hereto. Except as listed in Addendum A.

              Addendum A

              1. In lieu of additional stock, AEM will pay YEPD approximately
                 $22,000 for past services.
              2. AEM will purchase YEPD's product inventory for approximately
                 $20,000. YEPD insures all inventory purchased is of Current
                 designs and saleable.
              3. Duncan Keller shall receive the following yearly royalties:
                   a.  3% - up to $500,000 in product sales
                   b.  2% - $500,001 to $1,500,000
                   c.  1% - over $1,500,001
              These royalties will be in effect for 5 years and pay ability
              agreement will be automatically renewed unless terminated in
              writing by either party.

     13. Use of Yankee Engineuity Name - AEM will have exclusive right to use
the Yankee Engineuity name in Sales and Marketing of motorcycle parts and
accessories.

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     14. Termination - This agreement and the transactions contemplated hereby
may be terminated anytime prior to Closing hereof by

        a.  Written mutual consent of both parties hereto
        b.  By either party hereto if there has been a material breach by the
            other party of any term of this Agreement and such material breach
            is not cured by the breaching party within 30 days of notification
            in writing of such breach by the non-breaching party or has not been
            waived or cured by the effective date of the pending IPO of buyer
        c.  By either party hereto if a material condition of the Closing hereof
            has not been satisfied or cannot occur unless waived by the other
            party, or
        d.  At the option of either party hereto if the Closing has not taken
            place by December 31, 2000

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

Yankee Engineuity                                 American Eagle Motorcycle

By /s/ DUNCAN KELLER                               /s/ GREG SPAK
  -------------------------                       ------------------------------
Its Owner                                         Its President
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                                                                    EXHIBIT 10.4

                                DEALER AGREEMENT

This agreement is entered into this day by and between American Eagle Motorcycle
Co., Inc. ("Manufacturer") and American Cycles Legend ("Dealer").

Whereas, Manufacturer is the manufacturer of MOTORCYCLES AND MOTORCYCLE
ACCESSORIES AND PRODUCTS distributed and sold bearing certain proprietary trade
marks American Eagle ("Product").

Whereas, Dealer is in the business of marketing and selling MOTORCYCLE AND
MOTORCYCLE ACCESSORIES AND PRODUCTS and desires to enter into the business of
selling the Manufacturer's Product; and

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

Section 1. Dealership. During the term of this Agreement, Manufacturer hereby
appoints Dealer and Dealer hereby accepts appointment as, the distributor of the
Product. During the term of this Agreement, Dealer agrees to maintain Prices set
by Manufacturer, and offer proper warranty and service support as required by
manufacturer. The parties contemplate that the dealer will accept trade-ins of
other brand motorcycles and that dealer has the right to sell motorcycles
consisting of other brands. During said term, Dealer shall use reasonable
efforts to market and sell the Product. During said term, Manufacture shall not
itself market the product in the territory.

Section 2. Term. This Agreement shall begin January 5, 1999 and shall terminate
on December 31, 2001. It is the intention of the parties to hereto that this
Agreement will automatically renew unless either party terminates per Section
11.

Section 3. Prices. The suggested factory dealer price and the retail consumer
price for the items to be sold is set forth in Exhibit A attached hereto.

Section 4. Materials. The parties agree that, subject to reasonable
availability, Manufacturer will continue constructing the Product with same or
better quality as those motorcycles previously produced and exhibited to dealer.
The parties may, from time to time, agree to the substitution of alternative
materials.

Section 5. Trademark. Manufacturer is the owner of the trademark "American
Eagle" ("Mark"). Manufacturer hereby grants Dealer the exclusive right to
identify itself as an Authorized [MARK] Dealer in the Territory and to display
the Mark at Dealer's place(s) of business, including dealers of Dealer, located
within the Territory, in connection with the sale of the Product. Dealer shall
not make any use of the Mark, which is inconsistent with Manufacturer's policies
concerning its trademark use. Except as authorized herein, Dealer shall not make
use of the Mark, and Dealer shall neither have nor claim any right in respect to
the Mark.

                                DEALER AGREEMENT                               1
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                                 [TEXT TO COME]

                                DEALER AGREEMENT                               2
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Section 16. Past Due Account Balance. Dealers will be charged a 1.5% month
interest fee on all outstanding invoices not paid to American Eagle Motorcycle
Co. Inc. by their respected due date set forth in Exhibit B.

Section 17. Agreement Changes. This is the total agreement defining the
relationship between the Manufacturer and Dealer. Any request for change by
either party must be submitted in writing to the other. A response must be
returned in writing within 30 days.

Dealer

/s/ [ILLEGIBLE]                                        January 14, 1999
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Dealer                                                 Date
President American Legend Cycles

AMERICAN EAGLE MOTORCYCLE CO., INC.

/s/ GREG SPAK             President                    January 9, 1999
--------------------------------------                 -------------------------
Representative            Title                        Date

                                DEALER AGREEMENT                               3

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