Document:

<PAGE>

                                    March 30, 2001

APW Ltd.
APW North America, Inc.
APW Holdings Denmark APS
N22 W23685 Ridgeview Parkway West
Waukesha, WI 53188-1013

          Re:  Multicurrency Credit Agreement dated as of July 31, 2000 among
               APW Ltd., APW North America, Inc., APW Holdings Denmark APS,
               certain financial institutions, Bank One, N.A., as syndication
               agent, The Chase Manhattan Bank, as documentation agent and Bank
               of America, National Association, as administrative agent

Ladies and Gentlemen:

     Reference is made to the above-captioned credit agreement (the "Credit
Agreement"). All capitalized terms used in this letter shall have the meanings
set forth in the Credit Agreement, unless otherwise defined in this letter or
the context otherwise requires.  This letter shall supercede the letter dated
March 20, 2001 from the Administrative Agent to the Borrowers.

     The Borrowers have advised the Administrative Agent that they are not in
compliance with the requirements of Section 7.6(b) and 7.6(c) of the Credit
                                    --------------     ------
Agreement for the period ending February 28, 2001.  Such noncompliance shall be
referred to as the "Covenant Noncompliance."

     The Borrowers are willing to waive the Covenant Noncompliance during the
period from February 28,2001 through May 15, 2001 ("Waiver Period") on the terms
and conditions set forth in this letter and in reliance upon the representations
set forth in this letter.

     The Borrowers have represented for the purpose of this letter, that the
ratio as of February 28, 2001, calculated under Section 7.6(b), is not in fact
                                                ---------------
greater than 4.0 to 1, and that the ratio on such date, calculated under Section
                                                                         -------
7.6(c), is not in fact greater than 5.0 to 1.  During the Waiver Period, the
-------
Applicable Margin for Offshore Rate Loans shall be 2.25%, the Applicable Margin
for Base Rate Loans shall be 0.75% and the Applicable Non-Use Fee Rate shall be
0.375%.

     The Borrowers agree no later than April 4, 2001 to provide evidence
satisfactory to the Administrative Agent that the Amended and Restated Purchase
and Sale Agreement (the "RPS
<PAGE>

APW Ltd.
APW North America, Inc.
APW Holdings Denmark APS
March 30, 2001
Page 2

Agreement") among certain originators, APW North America, Inc. and Applied Power
Credit Corporation dated as of November 20, 1997, as amended and the Receivables
Purchase Agreement (the "RP Agreement") dated as of November 20, 1997, as
amended among Applied Power Credit Corporation, the Parent, Barton Capital
Corporation and Societe Generale is in full force and effect, the Scheduled
Commitment Termination Date under the RP Agreement is on or after May 15, 2001,
and no Termination Event under the RP Agreement has occurred and is continuing.

     The Borrowers agree that they will obtain no later than April 11, 2001 a
waiver from The Royal Bank of Scotland of any right to take action in respect of
Debt payable to it arising as a result of the Covenant Noncompliance.

     The Borrowers agree that the occurrence of any of the following shall
constitute an Event of Default:

          (a)  (i) Barton Capital Corporation or Societe Generale notifies the
               Borrowers that they will make no further Purchases or
               Reinvestments (as defined in the RP Agreement) or (ii) after the
               evidence required in the preceding paragraph has been delivered,
               the occurrence of a Termination Event or Commitment Termination
               Date under the RP Agreement;

          (b)  any repayment of principal on debt owing to The Royal Bank of
               Scotland; or

          (c)  the occurrence of a default or event of default (other than the
               Covenant Noncompliance) or an acceleration or demand with respect
               to the debt owing to The Royal Bank of Scotland.

     During the Waiver Period no Acquisitions, otherwise permitted under Section
                                                                         -------
7.7(c), shall be permitted.  During the Waiver Period, there shall not be any
------
Outstanding Obligations of APW-NA or APW-Denmark.  The Outstanding Obligations
of the Parent shall be limited to $530,000,000.

     The Borrowers agree that, during the Waive Period, they will not, and will
not permit any Subsidiary, to repay Debt other than at the scheduled maturity of
such Debt.
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APW Ltd.
APW North America, Inc.
APW Holdings Denmark APS
March 30, 2001
Page 3

     The Borrowers agree that, during the Waiver Period, they will not, and will
not permit any Subsidiary, to repay Debt other than at the scheduled maturity of
such Debt.

     The Borrowers agree that they will use their best efforts to cause
substantially all their assets (including the stock of their Subsidiaries) and
substantially all the assets of their Subsidiaries (excluding receivables sold
pursuant to the RPS Agreement) to be pledged as soon as practicable to secure
the Obligations in a form satisfactory to the Administrative Agent, as more
fully set forth in the letter of the Agent dated the date hereof or except as
the Administrative Agent may consent.  Any such security shall be on a perfected
first priority basis pari passu with Royal Bank of Scotland except for liens
permitted under Section 7.9 of the Credit Agreement.

     It shall be a condition to the effectiveness of this Waiver that the
Borrower pay the fees required in the letter from the Agent dated March 27,
2001.  The Borrowers shall also pay to Arthur Andersen and Mayer, Brown & Platt
retainers required in the letter from the Agent dated March 28, 2001.

     The Borrowers agree that they will furnish to the Administrative Agent and
the Banks on a weekly basis each Monday as of close of business the prior
Friday, a listing of Debt (including receivables sold) itemized by obligor.

     This letter shall be limited to its terms and shall not constitute a waiver
of any other rights, powers, and/or remedies the Banks may have from time to
time, including, without limitation, the right to accelerate the Obligations or
exercise remedies upon the occurrence of any Default or Event of Default (other
than those relating to the Covenant Noncompliance) during the Waiver Period, and
the Administrative Agent, on behalf of the Banks, expressly reserves any and all
of those rights, powers, and remedies, whether existing under any of the Loan
Documents, applicable law or otherwise.

     Noncompliance with any of the terms contained herein or inaccuracy with
respect to any representation herein made shall be deemed an Event of Default
under the Credit Agreement.

     This letter shall be effective upon execution and delivery by the Required
Banks and the consent and acknowledgment by the Borrowers and the Guarantors.

     This letter shall be a contract made under, and governed by, the laws of
Illinois.
<PAGE>

APW Ltd.
APW North America, Inc.
APW Holdings Denmark APS
March 30, 2001
Page 4

     Please acknowledge your representations and agreements by signing and
returning a copy of this letter.

                                   BANK OF AMERICA, N.A.
                                   as Administrative Agent

                                   By:    /s/ M.H. CLAGGETT
                                          ---------------------------------
                                   Title: Managing Director
                                          ---------------------------------

Acknowledged and Agreed this __ day of March, 2001

                                   APW LTD
                                   APW NORTH AMERICA, INC.
                                   APW HOLDINGS DENMARK APS

                                   By: __________________________
                                   Title :_______________________

Consent to this 30 day of March, 2001

                                   BANK OF AMERICA, NATIONAL ASSOCIATION

                                   By:    /s/ M.H. CLAGGETT
                                          ---------------------------------
                                   Title: Managing Director
                                          ---------------------------------

                                   BANK ONE, NA
                                   (Main Office Chicago)

                                   By: __________________________
                                   Title: _______________________
<PAGE>

APW Ltd.
APW North America, Inc.
APW Holdings Denmark APS
March 30, 2001
Page 5

                                   THE CHASE MANHATTAN BANK

                                   By: __________________________
                                   Title: _______________________

                                   FIRST UNION NATIONAL BANK

                                   By: __________________________
                                   Title: _______________________

                                   LASALLE BANK NATIONAL
                                   ASSOCIATION

                                   By: __________________________
                                   Title: _______________________

                                   THE ROYAL BANK OF SCOTLAND PLC

                                   By: __________________________
                                   Title: _______________________

                                   THE BANK OF TOKYO-MITSUBISHI,
                                   LTD., CHICAGO BRANCH

                                   By: __________________________
                                   Title: _______________________

<PAGE>

APW Ltd.
APW North America, Inc.
APW Holdings Denmark APS
March 30, 2001
Page 6

                                  CREDIT LYONNAISE CHICAGO BRANCH

                                  By: __________________________
                                  Title: _______________________

                                  U.S. BANK NATIONAL ASSOCIATION

                                  By: __________________________
                                  Title: _______________________

                                  THE FUJI BANK, LIMITED

                                  By: __________________________
                                  Title: _______________________

                                  FLEET NATIONAL BANK

                                  By: __________________________
                                  Title: _______________________

                                  FIRSTAR BANK, N.A.

                                  By: __________________________
                                  Title: _______________________

<PAGE>

APW Ltd.
APW North America, Inc.
APW Holdings Denmark APS
March 30, 2001
Page 7

                                  THE DAI-ICHI KANGYO BANK, LTD

                                  By: __________________________
                                  Title: _______________________

                                  M&I MARSHALL & ILSLEY BANK

                                  By: __________________________
                                  Title: _______________________

                                  BNP PARIBAS

                                  By: __________________________
                                  Title: _______________________

                                  SOCIETE GENERALE

                                  By: __________________________
                                  Title: _______________________

                                  THE BANK OF NEW YORK

                                  By: __________________________
                                  Title: _______________________
<PAGE>

APW Ltd.
APW North America, Inc.
APW Holdings Denmark APS
March 30, 2001
Page 8

                                   WACHOVIA BANK, N.A.

                                   By: __________________________
                                   Title: _______________________

                                   THE SAKURA BANK, LIMITED

                                   By: __________________________
                                   Title: _______________________

                                   THE MITSUBISHI TRUST & BANKING CORPORATION

                                   By: __________________________
                                   Title: _______________________

                                   APW Enclosures (Dublin) Limited
                                   Hoermann Security Systems Ltd.
                                   Applied Power Ltd.
                                   APW Electronics Ltd.
                                   APW Electronics Investments Overseas Ltd.
                                   Wright Line Ltd.
                                   VERO Electronics, Inc.
                                   APW Enclosure Systems Holdings Ltd.
                                   APW Enclosure Systems (UK) Ltd.
                                   APW Galway Limited
                                   Cambridge Aeroflot, Inc.
                                   Electronic Solutions
                                   McLean West Inc.
                                   McLean Midwest Corporation
                                   Zero-East Division, Zero Corporation
<PAGE>

APW Ltd.
APW North America, Inc.
APW Holdings Denmark APS
March 30, 2001
Page 9

                                   APW Enclosure Systems, Inc.
                                   Applied Power Credit Corp.
                                   Innovative Metal Fabrication, Inc.
                                   Precision Fabrication Technologies Inc.
                                   Metalade of Pennsylvania, Inc.
                                   APW Enclosure Systems Holding, Inc.
                                   APW Enclosure Systems, LP
                                   Rubicon USA, Inc.
                                   Aspen Motion Technologies Inc.
                                   HSP USA Inc.

                                   By: ________________________________
                                   Title: _______________________________<PAGE>

                                                                    EXHIBIT 10.3

                                    April 4, 2001

Applied Power Credit Corporation
APW North America, Inc.
N22 W23685 Ridgeview Parkway West
Waukesha, Wisconsin 53188-1013

     Re:  Possible Extension of Receivables Purchase Agreement, dated as of
          November 20, 1997 (as amended, supplemented or otherwise modified, the
          "Agreement"), among Applied Power Credit Corporation (the "Seller"),
          APW North America, Inc. (as successor to Applied Power Inc.) (the
          "Servicer"), Barton Capital Corporation (the "Purchaser"), and Societe
                                                       -------------------------
          Generale (the "Agent")
          ----------------------

Ladies and Gentlemen:

     Reference is hereby made to the Agreement.  Capitalized terms used herein,
and not otherwise defined herein, shall have the meanings ascribed to such terms
in Schedule I to the Agreement.

     You have requested an extension of the Commitment Termination Date under
the Agreement until May 15, 2001.  The Purchaser is willing to agree to such
extension, subject to your agreement to the following conditions:

          (a) delivery to the Agent no later than April 5, 2001 of executed
     Lock-Box Agreements for all Lock-Box Banks; and

          (b) delivery to the Agent no later than April 11, 2001 (or such later
     date as may be agreed to by the Agent in its sole discretion) of (i) an
     amendment to the Agreement providing for (A) the taking of the control and
     dominion over the Lock-Box Accounts by the Agent and the establishment of a
     "Concentration Account" under the control and dominion of the Agent into
     which all Collections will be transferred daily from the Lock-Box Accounts;
     (B) daily reporting and daily settlement (i.e., amounts will only be
     released from the "Concentration Account" to the extent of compliance under
     a daily borrowing base certificate); (C) an increase in the program fee to
     0.75% from 0.28%; (D) the addition of a "Dilution Reserve" of $7,000,000;
     (E) a minimum Recourse
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April 4, 2001
Page 2

     Percentage of 20%; (F) the appointment of two independent directors for the
     Seller acceptable to the Agent; (G) a reduction of the Purchase Limit to
     $80,000,000; (H) expansion of the Termination Events to cover (x) all
     cross-defaults with respect to any Debt of $2,000,000 or more (declared or
     undeclared, waived or unwaived) and (y) any repayment of principal or any
     default or event of default (other than the "Covenant Noncompliance"
     described in the waiver dated March 30, 2001) or any acceleration or demand
     under the Bank of America agented or the Royal Bank of Scotland facilities;
     and (I) such other amendments as the Agent shall request; (ii)opinions of
     counsel with respect to true sale/non-consolidation, enforceability,
     perfection and such other matters as the Agent shall request with respect
     to the Seller, Servicer and Originators; (iii) any updates to UCC financing
     statements requested by the Agent; (iv) confirmation that all Lock-Box
     Accounts are in the name of the Seller and controlled by the Agent; and (v)
     a $75,000 amendment fee;

          (c) simultaneously with the pledge of the stock of the Seller to any
     Person, an executed intercreditor agreement (including, without limitation,
     such Person's agreement to not put the Seller into bankruptcy, to respect
     the independent director provisions or to not otherwise attach the
     securitization transaction), in form and substance satisfactory to the
     Agent;

          (d) allow an examination, with the full cooperation of the Servicer,
     the Seller and each Originator, by accountants or consultants selected by
     the Agent, of the Receivables and Related Assets and related books, records
     and computer data and such other matters as shall be requested by the
     Agent, at the expense of the Servicer; and

          (e) payment by the Servicer of all fees and expenses (including,
     without limitation, all fees, expenses and costs of counsel) of the Agent
     and Purchaser, including, without limitation, payment by the Servicer of a
     retainer of $200,000.

     Please signify your agreement to the foregoing conditions and your
confirmation that (i) all of the representations and warranties contained in the
Agreement are correct on and as of the date hereof as though made on and as of
such date, (ii) no event has occurred and is continuing which constitutes a
Termination Event or Unmatured Termination Event as of such date and (iii) the
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April 4, 2001
Page 3

Aggregate Purchaser's Investments as of such date is $78,928,665.00 (and such
amount is not subject to any offset, dispute, counterclaim or other defense
whatsoever), in the space provided below.

                                    Very truly yours,

                                    SOCIETE GENERALE, as Agent

                                    By:   /s/ Martin J. Finan
                                          ----------------------
                                    Name: MARTIN J. FINAN
                                          ----------------------
                                    Title: Managing Director
                                           ---------------------

Accepted and Agreed
as of the date hereof:

APPLIED POWER CREDIT CORPORATION

By:   /s/ Michael S. Duffey
      ----------------------
Name: MICHAEL S. DUFFEY
      ----------------------
Title: SVP-CFO
       ---------------------

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