Document:

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                                                                    Exhibit 10.7

                            INDEMNIFICATION AGREEMENT

     INDEMNIFICATION AGREEMENT, dated as of June __, 2002, between Konover
Property Trust, Inc., a Maryland corporation (the "Company"), and
__________________, an individual ("Indemnitee").

     WHEREAS, Indemnitee is an officer of the Company;

     WHEREAS, a special committee of the Board of Directors of the Company (the
"Special Committee") was formed for the purposes of (x) negotiating and
approving an agreement with Prometheus Southeast Retail Trust, as assignee of
Prometheus Southeast Retail LLC ("Prometheus") to amend, modify or replace the
contingent value rights issued pursuant to the Contingent Value Rights
Agreement, dated as of February 24, 1998, between the Company and Prometheus,
and (y) reviewing, considering, investigating, evaluating and making
recommendations to the Board of Directors regarding strategic alternatives for
the Company;

     WHEREAS, both the Company and Indemnitee recognize the increased risk of
litigation and other claims being asserted against officers of public companies
in today's environment;

     WHEREAS, the Amended and Restated Articles of Incorporation of the Company
permit the Company to indemnify directors, officers and certain other persons to
the fullest extent permitted by law; and

     WHEREAS, in recognition of Indemnitee's need for substantial protection
against personal liability and to provide Indemnitee with specific contractual
assurance that the protection will be available to Indemnitee (regardless of,
among other things, any amendment to the Articles of Incorporation, the
Company's By-Laws or any change in the composition of the Company's Board of
Directors or any acquisition transaction relating to the Company), the Company
wishes to provide in this Agreement for the indemnification of, and the
advancement of expenses to, Indemnitee to the fullest extent permitted by law
and as set forth in this Agreement, and, to the extent provided herein, for the
continued coverage of Indemnitee under the Company's directors' and officers'
liability insurance policies.

     NOW, THEREFORE, in consideration of the premises and intending to be
legally bound hereby, the parties hereto agree as follows:

1. Certain Definitions.

     (a)  Claim. any threatened, pending or completed action, suit, proceeding,
arbitration, alternate dispute resolution mechanism, or any inquiry or
investigation, whether instituted by or in the right of the Company or any other
party, that Indemnitee in good faith believes might lead to the institution of
any such action, suit, proceeding, arbitration or alternate dispute resolution
mechanism, whether civil, criminal,

<PAGE>

administrative or investigative, arising from or in connection with the fact
that Indemnitee, or a person for whom Indemnitee is the legal representative, is
or was a director or officer of the Company, or is or was serving at the request
of the Company as a director, officer, employee or agent of another corporation
or of a partnership, limited liability company, joint venture, trust, enterprise
or nonprofit entity.

     (b)  Expenses. include reasonable attorneys' fees and all other reasonable
costs, expenses and obligations paid or incurred in connection with
investigating, defending, being a witness in or participating in (including on
appeal), or preparing to defend, be a witness in or participate in any Claim.

     (c)  Independent Legal Counsel. an attorney or firm of attorneys who shall
not have otherwise performed services for the Company within the last five years
(other than with respect to matters concerning the rights of Indemnitee under
this Agreement, or of other indemnities under similar indemnity agreements).

2.   Indemnification.

     (a)  In General. In connection with any Claim, whether relating to events
occurring before or after the date hereof, the Company shall indemnify, and
advance Expenses to, Indemnitee as provided in this Agreement and to the fullest
extent permitted by law.

     (b)  Claims Other Than Claims by or in the Right of the Company. In the
event Indemnitee was, is or becomes a party to or witness or other participant
in, or is threatened to be made a party to or witness or other participant in
any proceeding pursuant to any Claim, other than a Claim by or in the right of
the Company, the Company shall, subject to Sections 2(e), 2(f) and 2(g),
indemnify Indemnitee against any and all Expenses, judgments, fines, penalties
and amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such Expenses,
judgments, fines, penalties or amounts paid in settlement) of such Claim;
provided, however, that Indemnitee shall not settle a Claim without the consent
of the Company; and provided further, however, that Indemnitee shall not be
entitled to indemnification pursuant to this Section 2(b) in connection with
conduct finally adjudged as constituting acts or omissions not in good faith or
which involved a knowing violation of the law or resulted in the actual receipt
of an improper personal benefit in money, property or services by the
Indemnitee; but provided further, however, that the termination of a proceeding
pursuant to any Claim by judgment, order of the court or settlement (whether
with or without court approval), or its equivalent, shall not, of itself, create
a presumption that Indemnitee did not act in good faith in a manner which he
reasonably believed to be in the best interests of the Company and, with respect
to any criminal proceeding, that such person had reasonable cause to believe
that his conduct was unlawful.

     (c)  Proceedings by or in the Right of the Company. In the event Indemnitee
was, is or becomes a party to or witness or other participant in, or is
threatened to be

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made a party to or witness or other participant in any proceeding pursuant to
any Claim brought by or in the right of the Company to procure a judgment in its
favor, the Company shall, subject to Sections 2(e), 2(f), and 2(g), indemnify
Indemnitee against any and all Expenses (including all interest, assessments and
other charges paid or payable in connection with or in respect of such Expenses)
of such Claim; provided, however, that Indemnitee shall not be entitled to
indemnification pursuant to this Section 2(c) in connection with conduct finally
adjudged as constituting acts or omissions not in good faith or which involved a
knowing violation of the law or resulted in the actual receipt of an improper
personal benefit in money, property or services by the Indemnitee; but provided
further, however, that the termination of a proceeding pursuant to any Claim by
judgment, order of the court or settlement (with or without court approval), or
its equivalent, shall not, of itself, create a presumption that Indemnitee did
not act in good faith in a manner which he reasonably believed to be in the best
interests of the Company and, with respect to any criminal proceeding, that such
person had reasonable cause to believe that his conduct was unlawful.
Notwithstanding the foregoing, no such indemnification shall be made in respect
of any Claim, issue or matter as to which Indemnitee shall have been finally
adjudged to be liable to the Company unless and only to the extent that the
Court of Chancery or the court in which such Claim was brought shall determine
upon application that, despite the adjudication of liability but in view of all
the circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnity for such Expenses which the Court of Chancery or such other court
shall deem proper.

     (d)  Advancement of Expenses. If so requested by Indemnitee, the Company
shall advance (within 30 business days of such request) any and all Expenses to
Indemnitee (an "Expense Advance"); provided, however, that the payment of
Expenses incurred by Indemnitee in advance of the final disposition of the Claim
shall be made only upon receipt by the Company of an undertaking by Indemnitee
to repay all amounts advanced if it should be ultimately determined that
Indemnitee is not entitled to be indemnified under this Agreement or otherwise;
and provided further, however, that the obligation of the Company to make an
Expense Advance shall be subject to the condition that, if, when and to the
extent that a determination is made pursuant to Section 2(f) that Indemnitee
would not be permitted to be so indemnified under applicable law, the Company
shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse
the Company) for all such amounts theretofore paid, but provided that if
Indemnitee has commenced or thereafter commences legal proceedings pursuant to
Section 2(f) in a court of competent jurisdiction to secure a determination that
Indemnitee should be indemnified under applicable law, any determination by the
Company (including its Board of Directors or Independent Legal Counsel) made
pursuant to Section 2(f) that Indemnitee would not be permitted to be
indemnified under applicable law shall not be binding and Indemnitee shall not
be required to reimburse the Company for any Expense Advance until a final
judicial determination is made with respect thereto (as to which all rights of
appeal therefrom have been exhausted or lapsed).

     (e)  Indemnitee Not Entitled to Indemnification. Notwithstanding anything
in this Agreement to the contrary, Indemnitee shall not be entitled to
indemnification

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pursuant to this Agreement in connection with any Claim (or part thereof)
initiated by Indemnitee unless the Board of Directors has authorized or
consented to the initiation of such Claim (or part thereof).

     (f)  Payment of Indemnification; Determination of Entitlement. Any
indemnification or advance under this Section 2 shall be made no later than 30
business days after receipt of the written request of Indemnitee, unless a
determination is made within said 30 business days period by (a) the Board of
Directors of the Company by a majority vote of directors who were not parties to
such proceeding pursuant to such Claim even though less than a quorum, or (b)
Independent Legal Counsel in a written opinion (which counsel shall be appointed
if such a quorum is not obtainable), that Indemnitee has not met the relevant
standards for indemnification set forth in Section 2(b) and 2(c).

     (g)  Procedures with Respect to Claims. Upon receipt by Indemnitee of
actual notice of a Claim, such Indemnitee shall promptly notify the Company in
writing of such Claim, provided, however, that the failure to so notify the
Company shall not relieve the Company from any liability which the Company may
have under this agreement or otherwise, except to the extent the Company shall
have been materially prejudiced by such failure. The Company shall have the
right to assume the defense of any Claim and employ counsel reasonably
satisfactory to the Indemnitee. If (x) the Company has failed promptly to assume
the defense of such Claim and employ counsel reasonably satisfactory to
Indemnitee, or (y) such Indemnitee shall have been advised by counsel that there
are substantive issues that raise conflicts of interest between the Company and
the Indemnitee, then such Indemnitee shall have the right to assume the defense
of the Claim with respect to the Indemnitee (but not the Company) and the
reasonable fees and expenses of such counsel shall be an Expense for which
Indemnitee will be indemnified under this agreement; provided that if directors
who serve on the Special Committee are entitled under the terms of their
indemnification agreements with the Company to employ separate counsel (the
"Special Committee Counsel") at the Company's expense in connection with such
matter, the Indemnitee shall also employ Special Committee Counsel unless such
Indemnitee shall have been advised by counsel that there are substantive issues
that raise conflicts of interest between Indemnitee and the Special Committee
members. The Company will not settle a Claim without the prior written consent
of the Indemnitee unless such settlement includes an unconditional release of
the Indemnitee from all liabilities arising out of such Claim and does not
require Indemnitee to admit to, or plead no contest or its equivalent to, any
violation of any law, rule or regulation.

     The right to indemnification or Expense Advances as provided by this
Agreement shall be enforceable by Indemnitee in any court of competent
jurisdiction.

3.   Indemnification for Additional Expenses.

     The Company shall indemnify Indemnitee against any and all Expenses
(including reasonable attorneys' fees) and, if requested by Indemnitee, shall
(within 30

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business days of such request) advance such Expenses to Indemnitee, which are
incurred by Indemnitee in connection with any action brought by Indemnitee for
(i) indemnification or advance payment of Expenses by the Company under this
Agreement, or any other agreement, article of incorporation or Company by-law
now or hereafter in effect relating to Claims and/or (ii) recovery under any
directors' and officers' liability insurance policies maintained by the Company;
provided, however, that the payment of Expenses incurred by Indemnitee in
advance of the final disposition of such action shall be made only upon receipt
by the Company of an undertaking by the Indemnitee to repay all amounts advanced
if it should be ultimately determined that the Indemnitee is not entitled to be
indemnified under this Agreement or otherwise.

4.   Partial Indemnity.

     If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for a portion of the Expenses, judgments, fines,
penalties and amounts paid in settlement of a Claim but not, however, for the
total amount thereof, the Company shall nevertheless indemnify Indemnitee for
the portion thereof to which Indemnitee is entitled. Moreover, notwithstanding
any other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise in defense of any or all Claims or in
defense of any issue or matter therein, including dismissal without prejudice,
Indemnitee shall be indemnified against all Expenses incurred in connection
therewith.

5.   Burden of Proof.

     In connection with any determination by the Company (including its Board of
Directors or Independent Legal Counsel) or otherwise as to whether Indemnitee is
entitled to be indemnified hereunder, the burden of proof shall be on the
Company to establish that Indemnitee is not so entitled.

6.   No Presumptions.

     For purposes of this Agreement, the termination of any claim, action, suit
or proceeding, by judgment, order, settlement (whether with or without court
approval), or its equivalent, shall not create a presumption that Indemnitee did
not meet any particular standard of conduct or have any particular belief or
that a court has determined that indemnification is not permitted by applicable
law. In addition, neither the failure of the Company (including its Board of
Directors or Independent Legal Counsel) to have made a determination as to
whether Indemnitee has met any particular standard of conduct or had any
particular belief, nor an actual determination by the Company (including its
Board of Directors or Independent Legal Counsel) that Indemnitee has not met
such standard of conduct or did not have such belief, prior to the commencement
of legal proceedings by Indemnitee to secure a judicial determination that
Indemnitee should be indemnified under applicable law shall be a defense to
Indemnitee's claim or create a presumption that Indemnitee has not met any
particular standard of conduct or did not have any particular belief.

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7.   Nonexclusivity.

     The rights of Indemnitee hereunder shall be in addition to any other rights
Indemnitee may have under the Amended and Restated Articles of Incorporation,
the Company's By-Laws, the Maryland General Corporation Law or otherwise. To the
extent that a change in the Maryland General Corporation Law (whether by statute
or judicial decision) permits greater indemnification by agreement than would be
afforded currently under the Amended and Restated Articles of Incorporation and
this Agreement, it is the intent of the parties hereto that Indemnitee shall
enjoy by this Agreement the greater benefits so afforded by such change.

8.   Liability Insurance.

     The Company shall maintain directors' and officers' liability insurance
containing terms and conditions that are substantially similar to the current
policies maintained by or for the benefit of the Company. The aggregate amount
of such insurance (whether as part of the current umbrella policy maintained by
an affiliate of Prometheus and/or a policy maintained directly by the Company)
shall not have an overall limit on coverage of less than $20 million. Moreover,
the Company may not reduce its annual costs (measured as of the date hereof) to
maintain directors' and officers' liability insurance unless the Company can do
so without reducing the overall aggregate limit on coverage provided for in the
Company's directors' and officers' liability insurance. Any decision by the
Company with respect to the appropriate level of directors' and officers'
insurance for the Indemnitee will be made by the Board of Directors. The
Company's obligations under this Section 8 shall expire upon the sooner of (i)
three years after the Indemnitee ceases to be a director or officer of the
Company or (ii) six years from the date hereof.

9.   Amendments and Waivers.

     No supplement, modification or amendment of this Agreement shall be binding
unless executed in writing by the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

10.  Subrogation.

     In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all papers required and shall do everything that
may be necessary to secure such rights, including the execution of such
documents necessary to enable the Company effectively to bring suit to enforce
such rights.

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11.  No Duplication of Payments.

     The Company shall not be liable under this Agreement to make any payment in
connection with any Claim made against Indemnitee to the extent Indemnitee has
otherwise actually received payment (under any insurance policy, the By-Laws or
otherwise) of the amounts otherwise indemnifiable hereunder.

12.  Binding Effect.

     This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors, assigns,
including any direct or indirect successor by purchase, merger, consolidation or
otherwise of all or substantially all of the business, securities and/or assets
of the Company, spouses, heirs, executors, trustees and personal and legal
representatives. This Agreement shall continue in effect regardless of whether
Indemnitee continues to serve as an executive officer, director, employee, agent
or other representative of the Company or of any other enterprise at the
Company's request.

13.  Severability.

     The provisions of this Agreement shall be severable in the event that any
of the provisions hereof (including any provision within a single section,
paragraph or sentence) is held by a court of competent jurisdiction to be
invalid, void or otherwise unenforceable in any respect, and the validity and
enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired and shall remain enforceable
to the fullest extent permitted by law.

14.  Governing Law.

     This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Maryland applicable to contracts made
and to be performed in such state without giving effect to the principles of
conflicts of laws.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

                                                   KONOVER PROPERTY TRUST, INC.

                                                   By:__________________________
                                                   Name:
                                                   Title:

                                                   __________________________<PAGE>

                         SEVENTH AMENDMENT TO REVOLVING
                          CREDIT AND SECURITY AGREEMENT

         This SEVENTH AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT (this
"Amendment") is made and entered into on June 26, 2002, by and among REPTRON
ELECTRONICS, INC., a corporation organized under the laws of the State of
Florida ("Reptron"); LAKE SUPERIOR MERGER CORPORATION, a corporation organized
under the laws of the State of Florida ("Superior"); HIBBING ELECTRONICS
CORPORATION, a corporation organized under the laws of the State of Minnesota
("Hibbing"; Reptron, Superior and Hibbing, each a "Borrower" and collectively
"Borrowers"); the various financial institutions listed on the signature pages
hereof and their respective successors and permitted assigns which become
"Lenders"; and PNC BANK, NATIONAL ASSOCIATION, a national association ("PNC"),
as collateral and administrative agent for Lenders (PNC, together with its
successors in such capacity, the "Agent").

                                    Recitals:

         Agent, Lenders and Borrowers are parties to a certain Revolving Credit
and Security Agreement dated January 8, 1999 (as amended at any time, the
"Credit Agreement") pursuant to which Lenders have made certain revolving credit
loans and other extensions of credit to Borrowers.

         The parties desire to amend the Credit Agreement as hereinafter set
forth.

         NOW, THEREFORE, for TEN DOLLARS ($10.00) in hand paid and other good
and valuable consideration, the receipt and sufficiency of which are hereby
severally acknowledged, the parties hereto, intending to be legally bound
hereby, agree as follows:

1.         Definitions.  All capitalized terms used in this Amendment,  unless
otherwise defined herein, shall have the meaning ascribed to such terms in the
Credit Agreement.

2.         Amendments to Credit Agreement. Subject to the satisfaction of the
condition precedent set forth in Section 5 hereof, the Credit Agreement is
hereby amended as follows:

         a.      By inserting the following definition of "Applicable Letter of
         Credit Margin" to Section 1.2 of the Credit in proper alphabetical
         order:

                                      -1-

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          "Applicable Letter of Credit Margin" shall mean the percentage set
     forth below for the period corresponding thereto:

                    Period                                    Percentage

          June 26, 2002 through June 30, 2002                  3.00%
          July 1, 2002 through July 31, 2002                   3.25%
          August 1, 2002 through August 31, 2002               3.50%
          September 1, 2002 through September 30, 2002         3.75%
          October 1, 2002 and thereafter                       4.00%

     b.           By deleting the definitions of "Applicable Facility Fee
     Percentage," "Applicable Margin," "EBITDA," "Inventory Sublimit Amount,"
     "Maximum Revolving Advance Amount," and "Required Undrawn Availability"
     from Section 1.2 of the Credit Agreement and inserting the following in
     lieu thereof:

          "Applicable Facility Fee Percentage" shall mean one-half of one
     percent (0.50%) per annum).

          "Applicable Margin" shall mean the percentage set forth below for the
     period corresponding thereto:

                    Period                                    Percentage

          June 26, 2002 through June 30, 2002                  1.00%
          July 1, 2002 through July 31, 2002                   1.25%
          August 1, 2002 through August 31, 2002               1.50%
          September 1, 2002 through September 30, 2002         1.75%
          October 1, 2002 and thereafter                       2.00%

          "EBITDA" shall mean for any period the sum, for Borrowers on a
     consolidated basis, of (i) Earnings Before Interest and Taxes for such
     period plus (ii) depreciation expenses for such period, plus (iii)
     amortization expenses for such period, plus (iv) for the Fiscal Quarter
     ending June 30, 2002, any and all cash income tax refunds actually
     received.

          "Inventory Sublimit Amount" shall mean the amount set forth below for
     the period corresponding thereto:

                   Period                                  Amount

          June 26, 2002 through June 30, 2002            $29,750,000
          July 1, 2002 through September 30, 2002        $28,750,000
          October 1, 2002 and thereafter                 $27,750,000

                                      -2-

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          "Maximum Revolving Advance Amount" shall mean the amount set forth
     below for the period corresponding thereto:

                    Period                                  Amount

           June 26, 2002 through August 30, 2002          $60,000,000
           August 31, 2002 through November 29, 2002      $55,000,000
           November 30, 2002 and thereafter               $50,000,000

          "Required Undrawn Availability" shall mean $3,000,000.

     c.           By deleting Section 2.1(a)(y)(ii) of the Credit Agreement and
     inserting the following in lieu thereof:

          (ii)    up to the lesser of (A) thirty-one percent (31%), subject to
     the provisions of Section 2.1(b) hereof ("Inventory Advance Rate"), of the
     Value of the Eligible Inventory (the Receivables Advance Rate and the
     Inventory Advance Rate shall be referred to collectively, as the "Advance
     Rates"), or (B) the lesser of (1) the Inventory Sublimit Amount or (2)
     eighty percent (80%) (or such lesser percentage as Agent may in its
     reasonable credit judgment determine from time to time) of the net orderly
     liquidation value of Eligible Inventory (as determined from time to time
     based upon appraisals acceptable to Agent), minus

d.                By deleting Section 3.10 in its entirety and inserting the
following in lieu thereof:

                  3.10 Letter of Credit Fees. Borrowers shall pay (x) to Agent,
          for the benefit of Lenders, fees for each Letter of Credit for the
          period from and excluding the date of issuance of same to and
          including the date of expiration or termination, equal to the average
          daily face amount of each outstanding Letter of Credit multiplied by
          an percentage equal to the Applicable Letter of Credit Margin per
          annum, such fees to be calculated on the basis of a 360-day year for
          the actual number of days elapsed and to be payable monthly in arrears
          on the first day of each month and on the last day of the Term and (y)
          to the Issuer, any and all fees and expenses as agreed upon by the
          Issuer and the Borrowing Agent in connection with any Letter of
          Credit, including in connection with the opening, amendment or renewal
          of any such Letter of Credit and any acceptances created thereunder
          and shall reimburse Agent for any and all fees and expenses, if any,
          paid by Agent to the Issuer (all of the foregoing fees, the "Letter of
          Credit Fees"). All such charges shall be deemed earned in full on the
          date when the same are due and payable hereunder and shall not be
          subject to rebate or proration upon the termination of this Agreement
          for any reason. Any such charge in effect at the time of a particular
          transaction shall be

                                      -3-

<PAGE>

          the charge for that transaction, notwithstanding any subsequent change
          in the Issuer's prevailing charges for that type of transaction. All
          Letter of Credit Fees payable hereunder shall be deemed earned in full
          on the date when the same are due and payable hereunder and shall not
          be subject to rebate or proration upon the termination of this
          Agreement for any reason.

e.                By deleting Section 6.5 in its entirety and inserting the
following in lieu thereof:

                  6.5 Reserved.

f.                By deleting Sections 6.10 and 6.11 in their entirety and
inserting the following in lieu thereof:

                  6.10 Undrawn Availability. Maintain Undrawn Availability at
          all times of at least the Required Undrawn Availability, including
          both prior to and immediately after any Advance.

                  6.11 Minimum EBITDA. Maintain EBITDA of at least the amount
          shown below the period corresponding thereto:

                  Period                                               Amount

          Fiscal Quarter ending June 30, 2002                       $ 5,198,000
          Fiscal Quarter ending September 30, 2002                  $ 1,532,800
          Two Fiscal Quarters ending December 31, 2002              $ 4,929,600
          Three Fiscal Quarters ending March 31, 2003               $ 8,326,400
          Four Fiscal Quarters ending on June 30, 2003
           and on the last day of each Fiscal Quarter thereafter    $11,732,200

                  6.12 Inventory Appraisal. Borrowers shall retain an
          independent third-party appraiser, acceptable to Agent, to conduct an
          updated appraisal of the Inventory of each Borrower and all books and
          records in connection therewith, which shall be in scope and content
          satisfactory to Agent and the Required Lenders, and Borrowers shall
          cause such appraisal to be initiated before September 1, 2002. Such
          appraisal shall be at the expense of the Borrowers.

g.                By deleting Exhibit E in its entirety:

3.        Ratification and Reaffirmation.  Each Borrower hereby ratifies and
reaffirms the Obligations, each of the Loan Documents and all of such Borrower's
covenants, duties, indebtedness and liabilities under the Loan Documents.

                                      -4-

<PAGE>

4.  Limited Waiver of Default. Certain Events of Default have occurred and exist
under the Credit Agreement as a result of Borrowers' breach of Section 6.11 of
the Credit Agreement for the Fiscal Quarter ending March 31, 2002 by failing to
maintain the minimum required EBITDA (the "Designated Default"). Borrowers
represent and warrant that the Designated Default is the only Default or Event
of Default that exists under the Credit Agreement and the Other Documents as of
the date hereof. Subject to the satisfaction of the condition precedent set
forth in Section 5 hereof, Agent and Lenders hereby waive the Designated Default
in existence on the date hereof. In no event shall such waiver be deemed to
constitute a waiver of (a) any Default or Event of Default other than the
Designated Default in existence on the date of this Amendment or (b) each
Borrower's obligation to comply with all of the terms and conditions of the
Credit Agreement and the Other Documents from and after the date hereof.
Notwithstanding any prior, temporary mutual disregard of the terms of any
contracts between the parties, each Borrower hereby agrees that it shall be
required strictly to comply with all of the terms of the Loan Documents on and
after the date hereof.

5.  Condition Precedent. The effectiveness of the amendments contained in
Section 2 hereof and the limited waiver contained in Section 4 hereof are
subject to the Borrowers having paid to Agent, for the ratable benefit of the
Lenders executing this Amendment, an amendment fee of $181,378.44.

6.  Additional Covenants. To induce Agent and Lenders to enter into this
Amendment, Borrowers covenants and agree to pay to Agent, for the ratable
benefit of the Lenders executing this Amendment, (a) an additional amendment fee
of $150,000 in immediately available funds on August 31, 2002, if (i) Borrowers
have not previously delivered an Acceptable Commitment Letter or (ii) Borrowers
have not repaid all of the Obligations and terminated the Credit Agreement
within sixty (60) days of delivering such Acceptable Commitment Letter, and (b)
an additional amendment fee of $300,000 in immediately available funds on
November 30, 2002, if Borrowers have not previously repaid all of the
Obligations and terminated the Credit Agreement. As used herein, the term
"Acceptable Commitment Letter" shall mean a commitment letter from a financial
institution acceptable to Agent, in its sole discretion, and properly accepted
by Borrowers providing for the extension of loans and other credit to Borrowers
in an amount sufficient to repay, in full, all Obligations and containing such
other terms and conditions as are acceptable to Agent, in its sole discretion.

7.  Acknowledgments and Stipulations. Each Borrower acknowledges and stipulates
that the Credit Agreement and the Other Documents executed by such Borrower are
legal, valid and binding obligations of such Borrower that are enforceable
against such Borrower in accordance with the terms thereof; all of the
Obligations are owing and payable without defense, offset or counterclaim (and
to the extent there exists any such defense, offset or counterclaim on the date
hereof, the same is hereby waived by each Borrower); the security interests and
liens granted by Borrowers in favor of Agent are duly perfected, first priority
security interests and liens, except as permitted under the Credit Agreement;
and unpaid principal amount of Advances as of the close of business on June 20,
2002, totaled $34,865,416.24.

                                      -5-

<PAGE>

8.  Eurodollar Rate Loans. Notwithstanding any provision of the Credit Agreement
to the contrary, after the date hereof (a) no outstanding Advance, or any part
thereof, may be converted into or continued as a Eurodollar Rate Loan, and (b)
each existing Eurodollar Rate Loan shall be converted into a Domestic Rate Loan
on the last day of the Interest Period for such Eurodollar Rate Loan.

9.  Letters of Credit. Notwithstanding any provision of the Credit Agreement to
the contrary, after the date hereof Borrowers shall not be entitled to obtain,
and Agent shall have no obligation to issue, any additional Letters of Credit.

10. Revolving Credit Notes. In connection with the reduction of the Maximum
Revolving Advance Amount under the Credit Agreement from $75,000,000 to
$50,000,000 pursuant to this Amendment, the Borrowers are not being required to
execute and deliver new Revolving Credit Notes to each the Lenders as a matter
of convenience to the Borrowers. Notwithstanding that the aggregate amount of
the existing Revolving Credit Notes exceeds the Maximum Revolving Advance Amount
in effect from time to time pursuant to this Agreement, Borrowers acknowledge
and agree that they shall not be entitled to obtain any Advances in excess of
the Maximum Revolving Advance Amount in effect under the Credit Agreement at any
time.

11. Representations and Warranties. Borrowers represent and warrant to Agent and
Lenders, to induce Agent and Lenders to enter into this Amendment, that no
Default or Event of Default exists on the date hereof other than the Designated
Default; the execution, delivery and performance of this Amendment have been
duly authorized by all requisite corporate action on the part of Borrowers and
this Amendment has been duly executed and delivered by Borrowers; and all of the
representations and warranties made by Borrowers in the Credit Agreement are
true and correct on and as of the date hereof.

12. Breach of Amendment. This Amendment shall be part of the Credit Agreement
and a breach of any of any representation, warranty or covenant herein shall
constitute an Event of Default.

13. Expenses of Agent and Lenders. Each Borrower agrees to pay, on demand, all
costs and expenses incurred by Agent and Lenders in connection with the
preparation, negotiation and execution of this Amendment and any other Loan
Documents executed pursuant hereto and any and all amendments, modifications,
and supplements thereto, including, without limitation, the costs and fees of
Agent's and Lenders' legal counsel and any taxes or expenses associated with or
incurred in connection with any instrument or agreement referred to herein or
contemplated hereby.

14. Effectiveness; Governing Law. This Amendment shall be effective upon
acceptance by Agent and Lenders (notice of which acceptance is hereby waived),
whereupon the same shall be governed by and construed in accordance with the
internal laws of the State of Georgia.

                                      -6-

<PAGE>

15.   Successors and Assigns. This Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns.

16.   No Novation, etc. Except as otherwise expressly provided in this
Amendment, nothing herein shall be deemed to amend or modify any provision of
the Credit Agreement or any of the other Loan Documents, each of which shall
remain in full force and effect. This Amendment is not intended to be, nor shall
it be construed to create, a novation or accord and satisfaction, and the Credit
Agreement as herein modified shall continue in full force and effect.

17.   Counterparts; Telecopied Signatures. This Amendment may be executed in any
number of counterparts and by different parties to this Amendment on separate
counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute one and the same agreement. Any signature
delivered by a party by facsimile transmission shall be deemed to be an original
signature hereto.

18.   Further Assurances. Each Borrower agrees to take such further actions as
Lender shall reasonably request from time to time in connection herewith to
evidence or give effect to the amendments set forth herein or any of the
transactions contemplated hereby.

19.   Section Titles. Section titles and references used in this Amendment shall
be without substantive meaning or content of any kind whatsoever and are not a
part of the agreements among the parties hereto.

20.   Release of Claims. To induce Agent and Lenders to enter into this
Amendment, each Borrower hereby releases, acquits and forever discharges Agent,
Lenders, and all officers, directors, agents, employees, successors and assigns
of Agent and Lenders, from any and all liabilities, claims, demands, actions or
causes of action of any kind or nature (if there be any), whether absolute or
contingent, disputed or undisputed, at law or in equity, or known or unknown,
that such Borrower now has or ever had against Agent or any Lender arising under
or in connection with any of the Loan Documents or otherwise. Each Borrower
represents and warrants to Agent and Lenders that such Borrower has not
transferred or assigned to any Person any claim that such Borrower ever had or
claimed to have against Agent or any Lender.

                                      -7-

<PAGE>

21.       Waiver of Jury Trial. To the fullest extent permitted by applicable
law, the parties hereto each hereby waives the right to trial by jury in any
action, suit, counterclaim or proceeding arising out of or related to this
Amendment.

       IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed under seal in, and delivered by their respective duly authorized
officers on the date first written above.

                                           REPTRON ELECTRONICS, INC.

                                           By:_________________________________
                                            Name:______________________________
                                            Title:_____________________________

                                                    [CORPORATE SEAL ]

                                           LAKE SUPERIOR MERGER CORPORATION

                                           By:_________________________________
                                            Name:______________________________
                                            Title:_____________________________

                                                    [CORPORATE SEAL ]

                                      -8-

<PAGE>

                                           HIBBING ELECTRONICS CORPORATION

                                           By:____________________________
                                            Name:_________________________
                                            Title:________________________

                                                    [CORPORATE SEAL]

                                                 Accepted and agreed to:
                                                 ----------------------

                                           PNC BANK, NATIONAL ASSOCIATION, as a
                                           Lender and as Agent

                                           By:____________________________
                                            Name:_________________________
                                            Title:________________________

                                           BANK OF AMERICA, N.A. f/k/a
                                           NationsBank, N.A. , as a Lender

                                           By:____________________________
                                            Name:_________________________
                                            Title:________________________

                                           FIRSTAR BANK, N.A., as a Lender

                                           By:____________________________
                                            Name:_________________________
                                            Title:________________________

                                           IBM CREDIT CORPORATION, as a Lender

                                           By:____________________________
                                            Name:_________________________

                                      -9-

<PAGE>

                                              Title:___________________________

                                              COMERICA BANK, as a Lender

                                              By:______________________________
                                               Name:___________________________
                                               Title:__________________________

                                      -10-

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