LOAN AGREEMENT 2

óUSAPATRIOTActNotice39iiiLOANAGREEMENTThisLOANAGREEMENTdatedasofFebruary16,2009(theAgreement),isexecutedbyandbetweenKOSSCORPORATION,aDelawarecorporation(theBorrower)whichhasitschiefexecutiveofficelocatedat4129NorthPortWashingtonAvenue,Milwaukee,Wisconsin53212,andHARRISN.A.,anationalbankingassociation(theBank),whoseaddressis111WestMonroeStreet,Chicago,Illinois60603.RECITALS:TheBorrowerdesirestoborrowfundsandobtainotherfinancialaccommodationsfromtheBank.PursuanttotheBorrower'srequest,theBankiswillingtoextendsuchfinancialaccommodationstotheBorrowerunderthetermsandconditionssetforthherein.NOWTHEREFORE,inconsiderationofthepremises,andthemutualcovenantsandagreementssetforthherein,theBorroweragreestoborrowfromtheBank,andtheBankagreestolendtotheBorrower,subjecttoanduponthefollowingtermsandconditions:AGREEMENTS:Section1DEFINITIONS.1.1DefinedTerms.ForthepurposesofthisAgreement,thefollowingcapitalizedwordsandphrasesshallhavethemeaningssetforthbelow.Affiliateofanypersonorentityshallmean(a)anyotherpersonorentitywhich,directlyorindirectly,controlsoriscontrolledbyorisundercommoncontrolwithsuchpersonorentity,(b)anyofficerordirectorofsuchentity,and(c)withrespecttotheBank,anyentityadministeredormanagedbytheBank,oranAffiliateorinvestmentadvisorthereofandwhichisengagedinmaking,purchasing,holdingorotherwiseinvestingincommercialloans.Apersonorentityshallbedeemedtobecontrolledbyanyotherpersonorentityifsuchpersonorentitypossesses,directlyorindirectly,powertodirectorcausethedirectionofthemanagementandpoliciesofsuchpersonorentitywhetherbycontract,ownershipofvotingsecurities,membershipinterestsorotherwise.Ap