The brake sensor is a wireloop that wears through and creates a broken circuit to let you know that the pads are about gone - you'd have to replace the sensor.
I know on my Roadster, I had to replace the sensor and hold the key in the ACC position (position 2) for about 30 seconds for it to reset the indicator - I don't know if that is required on the 5's though.
Can't help on the exhaust - sorry.
Eric