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Exhibit 10.1

August 28, 2003

Ultimate Electronics, Inc.
321 West 84th Avenue, Suite A
Thornton, Colorado 80260
Attn: Chief Financial Officer

Re:Second Amended and Restated Loan and Security Agreement with Ultimate
Electronics, Inc., et al.—Maximum Permitted Capital Expenditures for One Year
Period Continuing Through January 31, 2004

Gentlemen:

        Reference is hereby made to that certain Second Amended and Restated
Loan and Security Agreement, dated as of September 28, 2001, executed by
Ultimate Electronics, Inc., a Delaware corporation ("Ultimate"), the other
entities party thereto indicated to be a "Borrower" (together with Ultimate,
"Borrowers"), Wells Fargo Retail Finance, LLC, a Delaware limited liability
company ("WFRF"), as the arranger and administrative agent ("Agent") and WFRF as
a Lender (as amended from time to time, "Loan Agreement"). Unless otherwise
indicated, all terms used herein shall have the same meanings as in the Loan
Agreement. PNC Bank, National Association and WFRF are the current "Lenders"
party to the Loan Agreement ("Lenders").

        Each of the Borrowers has requested that Lenders agree with Borrowers
that despite the present wording of Section 7.22 of the Loan Agreement, that for
the period beginning February 1, 2003, and continuing through January 31, 2004
("Subject Period"), the maximum aggregate amount of capital expenditures
(exclusive of capitalized leased financing incurred for financing the
acquisition of real estate in connection with the opening of a new store located
on such real estate) Borrowers may make is $48,000,000 ("Maximum Capital
Expenditure Amount").

        Subject to the terms and conditions of this letter, Lenders hereby agree
with Borrowers that $48,000,000 shall constitute the Maximum Capital Expenditure
Amount for the Subject Period.

        The foregoing agreement by Lenders to modify Section 7.22 of the Loan
Agreement (i) shall not waive or affect any past, present or future violation or
violations of any provision of Loan Agreement, and (ii) shall not directly or
indirectly in any way whatsoever either: (a) impair, prejudice or otherwise
adversely affect either Agent's or Lenders' right at any time to exercise any
right, privilege, or remedy in connection with the Loan Agreement, any other
Loan Document, or any other contract or instrument, or (b) amend or alter any
other provision of the Loan Agreement, any other Loan Document, or any other
contract or instrument, or (c) constitute any course of dealing or other basis
for altering any obligation of any Borrower or any right, privilege or remedy of
Agent or Lenders under the Loan Agreement, any other Loan Document, or any other
contract or instrument.

        Except as expressly set forth herein, all of the other terms, provisions
and conditions of the Loan Agreement and the other Loan Documents shall remain
and continue in full force and effect.

        Lenders reserve all of their rights, privileges and remedies under the
Loan Agreement, each other Loan Document, and any other contracts or instruments
executed by any Borrower and/or for the benefit of any Lender. In order to
induce Lenders to execute this letter, Borrowers accept and agree to each
provision of this letter.

        Notwithstanding any provision of this letter to the contrary, this
letter shall not be directly or indirectly effective against Lenders for any
purpose unless and until Agent receives the original of this

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letter which has been duly signed by Ultimate, as Administrative Borrower for
itself and the other Borrowers.

 
 
Yours very truly,
 
 
WELLS FARGO RETAIL FINANCE, LLC
 
 
By:
 
/s/  JENNIFER BLANCHETTE      

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    Its:   Assistant Vice President
 
 
PNC BANK, NATIONAL ASSOCIATION
 
 
By:
 
/s/  ILENE SILBERMAN      

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    Its:   Vice President

Agreed and Accepted:
 
 
ULTIMATE ELECTRONICS, INC.
Administrative Borrower for Itself and the other Borrowers
 
 
By:
 
/s/  ALAN E. KESSOCK      

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  Its:   CFO and SVP—Finance    

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Exhibit 10.1