CHEROKEE INTERNATIONAL LLC
EX-10.1
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT

10.1</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WAIVER AND FOURTH AMENDMENT</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TO CREDIT AGREEMENT</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This WAIVER AND FOURTH AMENDMENT TO CREDIT AGREEMENT

(&#147;Amendment&#148;) is dated as of August&nbsp;13,&nbsp;2002&#160; and is entered into by and among Cherokee

International, LLC, a California limited liability company (&#147;Borrower&#148;), Heller

Financial, Inc., in its capacity as Agent for the Lenders party to the Credit

Agreement described below (&#147;Agent&#148;), and the Lenders which are signatories

hereto.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; WHEREAS, Agent,

Lenders and Borrower are parties to a certain Credit Agreement dated as of

April 30, 1999, as amended by that certain Consent, Waiver and First Amendment

to Credit Agreement dated as of June 15, 2000, as further amended by that

certain Second Amendment to Credit Agreement dated as of March 30, 2001, and as

further amended by that certain Waiver and Third Amendment to Credit Agreement

dated as of September 26, 2001 (as such agreement may be further amended,

restated, supplemented or otherwise modified and in effect from time to time,

the &#147;Agreement&#148;);<b><font style="font-weight:bold;">  </font></b>and</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font size="2" style="font-size:10.0pt;">WHEREAS, the Borrower has requested a waiver of

compliance with the provisions set forth on <u>Exhibit A</u> and any Event of

Default relating to such failure to comply (together with any notification or

certification obligations with respect thereto, the &#147;Waived Provisions&#148;); and</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; WHEREAS, the Borrower has requested that the Lenders

waive the Waived Provisions, and the Lenders are willing to waive the Waived

Provisions upon the terms, and subject to the conditions, set forth herein; and</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; WHEREAS, the

parties desire to amend the Agreement<b><font style="font-weight:bold;">  </font></b>as hereinafter set forth.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; NOW THEREFORE, in

consideration of the mutual conditions and agreements set forth in the

Agreement and this Amendment, and other good and valuable consideration, the

receipt and sufficiency of which are hereby acknowledged,&#160; the parties hereto hereby agree as follows:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Definitions</u>.&#160;

</font></b><font size="2" style="font-size:10.0pt;">Capitalized

terms used in this Amendment, unless otherwise defined herein, shall have the

meaning ascribed to such terms in the Agreement.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Amendments</u>.&#160; </font></b>Subject to the conditions set

forth below, the Agreement is amended as follows:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt .25in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Term Loan A Scheduled

Installments and the Term Loan B Scheduled Installments set forth in subsection

1.1(A) are each amended by deleting all dates and amounts occurring after

December 31, 2003 and replacing such dates and amounts with the following, as

applicable.</font></p>



<p style="margin:0in 0in 12.0pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the Term Loan A Scheduled Installments:</font></p>



<p style="margin:0in 0in 12.0pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">January 8, 2004&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The

remaining unpaid balance of the Term Loan A</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>





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<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in 12.0pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the Term Loan B Scheduled Installments:</font></p>



<p style="margin:0in 0in 12.0pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">January 8, 2004&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The

remaining unpaid balance of the Term Loan B</font></p>



<p style="margin:0in 0in 12.0pt .25in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subsection 1.1(B)(1) is amended by

deleting the &#147;$25,000,000&#148; figure therein and substituting &#147;$20,000,000&#148; in

lieu thereof.</font></p>



<p style="margin:0in 0in 12.0pt .25in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subsection 1.1(B)(2) is amended by

deleting the last two sentences of such subsection and adding in their place

the following sentences to the end of such subsection:</font></p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Lenders agree to provide Overadvance Revolving Loans to the

Borrower during the period from the Third Amendment Effective Date through

December 31, 2002 in an amount not to exceed $2,500,000, subject to the terms

of this Agreement; <u>provided</u> that, the first, second, and third sentences

of this subsection will not apply to such Overadvance Revolving Loans through

and including December 31, 2002.&#160; The

Maximum Revolving Loan Balance shall be deemed increased by the amount of such

Overadvance Revolving Loans from time to time outstanding.&#160; Notwithstanding anything contained in this

Agreement to the contrary, the Base Rate Margin and the LIBOR Margin applicable

to such Overadvance Revolving Loans shall be equal to 2% in excess of the Base

Rate Margin and LIBOR Margin otherwise applicable to Revolving Loans in

accordance with the Pricing Table set forth in Subsection 1.2(A) hereof.&#160; Unless an earlier maturity is provided for

herein, such Overadvance Revolving Loans shall be due and payable on December

31, 2002.&#160; From and after the Fourth

Amendment Effective Date, each outstanding or new Overadvance Revolving Loan

shall begin accruing interest from and after (i) the date such Overadvance

Revolving Loan was advanced, if such Overadvance Revolving Loan is made

pursuant to the affirmative request of the Borrower, or (ii) in all other

cases, the date on which the Borrower delivers (or was required to deliver

pursuant to the terms of this Agreement) a Borrowing Base Certificate which

indicates the amount of outstanding Revolving Loans exceeds the Maximum

Revolving Loan Balance, in which case the Borrower shall, subject to the amount

limitation set forth above, be deemed to have requested such an Overadvance

Revolving Loan bearing interest at the Base Rate plus 2% in excess of the Base

Rate Margin or LIBOR plus 2% in excess of the LIBOR Margin, as applicable, on

the date such Borrowing Base Certificate is delivered.&#160; Notwithstanding anything in this subsection

to the contrary, in no event may the aggregate principal amount of all

Revolving Loans and all Overadvance Revolving Loans exceed the amount of the

Revolving Loan Commitment less outstanding Risk Participation Liability.</font></p>



<p style="margin:0in 0in 12.0pt .25in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subsection 1.3(C) is amended by

adding the following sentence to the end of such subsection:</font></p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Without limiting the generality of the foregoing, Borrower agrees to

pay, solely in connection with the Fourth Amendment, all reasonable fees, costs</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and expenses (including those of attorneys) incurred by each Lender

consenting to the Fourth Amendment.</font></p>



<p style="margin:0in 0in 12.0pt .25in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A new Subsection 2.10 is inserted

into the Agreement in proper numerical order, which Subsection shall read as

follows:</font></p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Subordinated Notes

Restructuring</u>.&#160;&#160; On or prior to

August 15, 2002, Borrower shall deliver to Agent a preliminary term sheet for

the restructuring of the Subordinated Notes, which restructuring shall provide,

among other things, for a reduction in the cash interest required to be paid on

the Subordinated Notes, and/or the conversion into preferred equity or

redemption of a percentage to be determined of the Subordinated Notes (the &#147;Restructuring&#148;).

<b><font style="font-weight:bold;">&#160;</font></b>On

or prior to September 15, 2002, Borrower shall deliver to Agent a final term

sheet with respect thereto.&#160; Borrower

shall cause the Restructuring to be completed on or prior to October 15, 2002

on terms reasonably acceptable to the Agent and to the Requisite Lenders.&#160; Borrower&#146;s failure to comply with any of the

terms contained in this Section 2.10 shall constitute an Event of Default.</font></p>



<p style="margin:0in 0in 12.0pt .25in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subsection 4.6(F) is amended by

adding the following sentence to the end of such subsection:</font></p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will deliver to Agent a preliminary Borrowing

Base Certificate within (15) days after the end of each month if at such time

Borrower has not delivered the financial statements and Borrowing Base

Certificate described in the immediately preceding sentence.&#160; Without limiting the generality of Section

6.1(C), Borrower&#146;s failure to comply with any of the terms of this Section

4.6(F) shall constitute an Event of Default.</font></p>



<p style="margin:0in 0in 12.0pt .25in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subsection 4.8 is amended and

restated in its entirety to be and to read as follows:</font></p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Sponsor

Obligations</u>. The parties agree that the Sponsor Guaranties and the Sponsor

Collateral constitute Security Documents.&#160;

Any proceeds obtained by Agent or Borrower from the Sponsor Guaranties

and the Sponsor Collateral shall be applied in the following order of

priority:&#160; (i) $2,215,089.52 to be

applied to reduce the outstanding Overadvance Revolving Loans, (ii) $150,301.73

to repay outstanding Revolving Loans, (iii) $2,033,848.37 to be applied against

the September 30, 2002 Scheduled installments of both Term Loans, and (iv)

$4,298,928.72 shall be applied pro rata between both Term Loans as a pro rata

reduction of the remaining Scheduled Installments.&#160; The parties further acknowledge and agree that the $1,801,831.66

payment received by Agent under the Sponsor Guaranties on July 1, 2002 was

applied against the June 30, 2002 Scheduled Installments of both Term Loans.</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





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<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in 12.0pt .25in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subsection 10.1 is amended by

inserting the following definitions in their proper alphabetical order, or,

where applicable, replacing an existing definition with the applicable below

definition:</font></p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Expiry Date&#148; means the earlier of (a) the suspension (subject to

reinstatement) of the Lenders&#146; obligations to make Revolving Loans pursuant to

subsection 6.2, (b) the acceleration of the Obligations pursuant to subsection

6.3, or (c) January 8, 2004.</font></p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Fourth Amendment&#148; means that certain Waiver and Fourth Amendment to

Credit Agreement dated as of the Fourth Amendment Effective Date among Borrower,

Agent and the Lenders party thereto.</font></p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#147;Fourth Amendment Effective

Date&#148; means August&nbsp;13, 2002.</font></p>



<p style="margin:0in 0in 12.0pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Maximum Revolving Loan Balance&#148; will be the lesser of (a) the

&#147;Borrowing Base&#148; (as calculated on Exhibit 4.6(F), the &#147;Borrowing Base

Certificate&#148;) less outstanding Risk Participation Liability or (b) the

Revolving Loan Commitment less outstanding Risk Participation Liability.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">3.</font></b>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">Waiver</font></u>.</b>&#160; Agent and Lenders hereby waive compliance with

the Waived Provisions.&#160; This waiver

shall not be deemed to constitute a waiver of any Event of Default (other than

Borrower&#146;s failure to comply with the Waived Provisions) or any future breach

of the Agreement or any of the other Loan Documents.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conditions</u>.&#160; </font></b><font size="2" style="font-size:10.0pt;">The effectiveness of this Amendment is subject to the

following conditions precedent (unless specifically waived in writing by

Agent):</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower, Agent and Requisite Lenders

shall have executed and delivered this Amendment,<b><font style="font-weight:bold;">  </font></b>&#160;and such other documents and instruments as Agent may reasonably

require shall have been executed and/or delivered to Agent;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All proceedings taken in connection

with the transactions contemplated by this Amendment and all documents,

instruments and other legal matters incident thereto shall be reasonably

satisfactory to Agent, its legal counsel and the Lenders consenting to this

Amendment;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No Default or Event of Default shall

have occurred and be continuing after giving effect to this Amendment;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Borrower shall have paid Agent, for

the benefit of the Lenders consenting to this Amendment, an amendment fee in

the amount of $93,403.17, to be paid to each consenting Lender based upon their

respective Pro Rata Share (determined in accordance with clause (c) of the

definition thereof);</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Agent shall have received payments in

an aggregate amount equal to at least $10,500,000 under the Sponsor Guarantees,

including any payments made on July 1, 2002,</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>





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<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">which payments have been

or will be applied in accordance with Section 4.8 of the Agreement, as amended

hereby; and</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Agent shall have received financial

statements and/or such other information as it shall request demonstrating to

Agent&#146;s satisfaction that Borrower has adequate liquidity to maintain its

normal business operations through September 30, 2002.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Representations and Warranties</u>.</font></b>&#160;&#160;&#160; &#160; To

induce Agent and Lenders to enter into this Amendment, Borrower represents and

warrants to Agent and Lenders:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; that the execution, delivery and

performance of this Amendment has been duly authorized by all requisite limited

liability company action on the part of Borrower and that this Amendment has

been duly executed and delivered by Borrower;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; that each of the representations and

warranties set forth in Section 5 of the Agreement (other than those that, by

their terms, specifically are made as of certain date prior to the date hereof)

are true and correct in all material respects as of the date hereof (after

giving effect to this Amendment); and</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; there is no Default or Event of Default

other than those resulting from Borrower&#146;s failure to comply with the Waived

Provisions.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability</u>. &#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>Any provision of this

Amendment held by a court of competent jurisdiction to be invalid or

unenforceable shall not impair or invalidate the remainder of this Amendment

and the effect thereof shall be confined to the provision so held to be invalid

or unenforceable.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>References</u>.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font size="2" style="font-size:10.0pt;">Any reference to the Agreement contained

in any&#160; document, instrument or

agreement executed in connection with the Agreement shall be deemed to be a

reference to the Agreement as modified by this Amendment.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>.&#160; </font></b>This Amendment may be executed by

facsimile and in one or more counterparts, each of which shall constitute an

original, but all of which taken together shall be one and the same instrument.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><font style="font-weight:bold;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Ratification</u>.&#160; </font></b>The terms and provisions set

forth in this Amendment shall modify and supersede all inconsistent terms and

provisions of the Agreement and shall not be deemed to be a consent to the

modification or waiver of any other term or condition of the Agreement.&#160; Except as expressly modified and superseded

by this Amendment, the terms and provisions of the Agreement are ratified and

confirmed and shall continue in full force and effect.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[remainder of page intentionally left

blank]</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<br clear="all" style="page-break-before:always;">

</font>



<p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; IN WITNESS WHEREOF, the parties hereto have caused

this Amendment to be duly executed under seal and delivered by their respective

duly authorized officers on the date first written above.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr height="15" style="height:11.25pt;">

  <td width="38%" colspan="2" rowspan="2" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">HELLER FINANCIAL, INC.</font></b><font size="2" style="font-size:10.0pt;">,<br>

  as Agent and Lender</font></p>

  </td>

  <td width="6%" rowspan="4" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:6.64%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="54%" colspan="2" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:54.44%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHEROKEE INTERNATIONAL, LLC</font></b></p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="54%" colspan="2" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:54.44%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.44%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="50%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:50.0%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.44%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="50%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:50.0%;">

  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p align="right" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="6%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:6.64%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="54%" colspan="2" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:54.44%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="31" style="height:22.9pt;">

  <td width="38%" colspan="2" height="31" valign="top" style="height:22.9pt;padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;text-transform:uppercase;">BANK&#160; AUSTRIA

  CREDITANSTALT</font></b><font size="2" style="font-size:10.0pt;"><br>

  <b><font style="font-weight:bold;">CORPORATE

  FINANCE, INC.</font></b></font></p>

  </td>

  <td width="6%" rowspan="28" valign="top" style="height:22.9pt;padding:0in .7pt 0in .7pt;width:6.64%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="54%" colspan="2" rowspan="28" valign="top" style="height:22.9pt;padding:0in .7pt 0in .7pt;width:54.44%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="31" style="height:22.9pt;">

  <td width="38%" colspan="2" height="31" valign="top" style="height:22.9pt;padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FLEET CAPITAL CORPORATION</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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 <tr>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

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  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

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  <td width="34%" height="15" valign="top" style="border:none;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">U.S. BANK</font></b></p>

  </td>

 </tr>

 <tr>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

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  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

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  </td>

  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">GSC

  RECOVERY II, L.P.</font></b></p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="34%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="34%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FINOVA CAPITAL CORPORATION</font></b></p>

  </td>

 </tr>

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  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

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  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr height="15" style="height:11.25pt;">

  <td width="4%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:4.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="34%" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:34.36%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

</table>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>





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<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CONSENT AND REAFFIRMATION</font></u></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The undersigned

(&#147;Guarantor&#148;) hereby (i) acknowledges receipt of a copy of the foregoing Waiver

and Fourth Amendment to Credit<b><font style="font-weight:bold;">  </font></b>Agreement; (ii) consents to Borrower&#146;s

execution and delivery thereof; (iii) agrees to be bound thereby; and (iv)

affirms that nothing contained therein shall modify in any respect whatsoever

its guaranty of the obligations of Borrower to Agent and Lenders pursuant to

the terms of that certain Guaranty dated as of April 30, 1999, (the &#147;Guaranty&#148;)

and reaffirms that the Guaranty is and shall continue to remain in full force

and effect.&#160; Although Guarantor has been

informed of the matters set forth herein and has acknowledged and agreed to

same, Guarantor understands that Agent and Lenders have no obligation to inform

Guarantor of such matters in the future or to seek Guarantor&#146;s acknowledgment

or agreement to future amendments or waivers, and nothing herein shall create

such a duty.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; IN WITNESS

WHEREOF, the undersigned has executed this Consent and Reaffirmation on and as

of the date of such Amendment.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="38%" style="border-collapse:collapse;margin-left:330.7pt;width:38.78%;">

 <tr>

  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHEROKEE INTERNATIONAL FINANCE,<br>

  INC.</font></b><font size="2" style="font-size:10.0pt;">, a

  California corporation</font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

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  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.14%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="82%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:82.86%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.14%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>

  </td>

  <td width="82%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:82.86%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.14%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>

  </td>

  <td width="82%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:82.86%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

</table>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



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</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;"><b><font style="font-weight:bold;">
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<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT A TO

AMENDMENT</font></b></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:auto;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">LIST OF WAIVED

PROVISIONS UNDER THE AGREEMENT</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Section 1.5(B) of the Agreement for the

fiscal year ending December 31, 2001.</font></p>



<p style="margin:0in 0in 12.0pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Section 4.3 of the Agreement for the

fiscal quarter ending June 30, 2002.</font></p>



<p style="margin:0in 0in 12.0pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Section 4.4 of the Agreement for the

fiscal quarter ending June 30, 2002.</font></p>



<p style="margin:0in 0in 12.0pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Section 4.5 of the Agreement for the

fiscal quarter ending June 30, 2002.</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>





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