Re: Loan and Security Agreement dated September 17, 1998 as modified (the "Loan Agreement")
By our letter of January 23, 2003 we notified you of the existence of an Event of Default as a
consequence of your failure to deliver the required financial statements for the year ended September 30, 2002
within the time period required under Section 6.4 of the Loan Agreement. You have this date furnished to us the
required financial statements for such year ended September 30, 2002.
This is to confirm our waiver of the above specified Event of Default, subject to the condition that
your Obligations shall be bear interest at the Default Rate provided for in Loan Agreement from Febuary 1, 2003
to, but excluding, the date hereof.
The foregoing waiver shall be limited to the specified Event of Default set forth in our letter of January
23, 2003, and shall not apply to any other Events of Default, if any so exist, or any future violation of any
provisions of the Loan Agreement of any other Loan Documents.
Except as herein set forth, the Loan Agreement and all other Loan Documents shall remain in full force
Febuary 13, 2003
K-Tronik N.A., Inc.
290 Vincent Avenue
Hackensack, New Jersey 07601
Attn: Robert Kim, President
214 Carnegie Center
Princeton, NJ 08540
Business Alliance Capital Corp.
By: /s/ William Seibold
Senior Vice President