Document:

Amendment No. 3 to Loan & Security Agreement

 

Exhibit 10.23

AMENDMENT NO. 3 TO LOAN AND SECURITY AGREEMENT AND CONSENT

     THIS AMENDMENT NO. 3 TO LOAN AND SECURITY AGREEMENT AND CONSENT (this “Amendment”) is made and
entered into as of February 2, 2006, by and among ARTESYN TECHNOLOGIES, INC., a Florida
corporation (“Technologies”); ARTESYN NORTH AMERICA, INC., a Delaware corporation (“North
America”); ARTESYN COMMUNICATION PRODUCTS, INC., a Wisconsin corporation (“Communication Products”;
Technologies, North America and Communication Products are hereinafter referred to collectively as
“Borrowers” and individually as a “Borrower”); ARTESYN ASSET MANAGEMENT, INC., a Delaware
corporation (“AAM”); ARTESYN DELAWARE, INC., a Delaware corporation (“ADI”); ARTESYN DELAWARE, LLC,
a Delaware limited liability company (“Artesyn LLC”; AAM, ADI and Artesyn LLC are hereinafter
referred to collectively as “Guarantors” and individually as a “Guarantor”); and BANK OF AMERICA,
N.A., a national banking association and successor in interest to Fleet Capital Corporation
(together with its successors and assigns, “Lender”).

Recitals:

     Fleet Capital Corporation, a Rhode Island corporation (“Fleet”) and Borrowers are parties to
that certain Loan and Security Agreement dated March 28, 2003, as amended by that certain Letter
Amendment dated April 30, 2003, and that certain Amendment No. 2 to Loan and Security Agreement and
Consent dated August 13, 2003 (as at any time amended, restated, modified or supplemented, the
“Loan Agreement”) pursuant to which Fleet has made certain revolving credit and term loans to
Borrower.

     Prior to the date hereof, Fleet has assigned the Loan Agreement, all of the other Loan
Documents, and all of the Obligations thereunder, to Bank of America, N.A.

     The parties desire to amend the Loan 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 Loan Agreement.

     2. Amendment to Loan Agreement and Other Loan Documents. The terms and
definitions “Fleet Capital Corporation”, “Fleet”, “Secured Party” and “Lender” used in the Loan
Agreement and each of the other Loan Documents are hereby amended to mean and refer to Bank of
America, N.A., a national banking association, whose mailing address is 300 Galleria Parkway, Suite
800, Atlanta, Georgia 30339, as successor to Fleet Capital Corporation. All references in the Loan
Agreement and the other Loan Documents to “Fleet Capital Corporation”, “Fleet”, “Secured Party” and
“Lender” shall be deemed to refer to Bank of America, N.A.

     3. Amendments to Loan Agreement. The Loan Agreement is hereby amended as follows,
with such amendments applying retroactively as of September 30, 2005:

 

 

     (a) By deleting Section 1.3 of the Loan Agreement in its entirety and by substituting
in lieu thereof the following:

     1.3. LC Facility.

     1.3.1. Issuance of Letters of Credit. Subject to all of the
terms and conditions hereof, Lender agrees to establish the LC Facility
pursuant to which, during the period from the date hereof to (but excluding)
the 15th day prior to the last day of the Term, and provided no Default or
Event of Default exists, Lender shall issue one or more Letters of Credit on
Borrowers’ request therefor from time to time, subject to the following
terms and conditions:

     (i) Borrowers acknowledge that Lender’s willingness to issue any
Letter of Credit is conditioned upon Lender’s receipt of (A) an LC
Application with respect to the requested Letter of Credit and (B)
such other instruments and agreements as Lender may customarily
require for the issuance of a letter of credit of equivalent type and
amount as the requested Letter of Credit. Lender shall have no
obligation to issue any Letter of Credit unless (x) Lender receives
an LC Request and LC Application at least 3 Business Days prior to
the date of issuance of a Letter of Credit, and (y) each of the LC
Conditions is satisfied on the date of Lender’s receipt of the LC
Request and at the time of the requested issuance of a Letter of
Credit. Any Letter of Credit issued on the Closing Date shall be for
an amount in Dollars that is greater than $250,000.

     (ii) Letters of Credit may be requested by Borrowers only if
they are used (a) to support obligations of Borrowers incurred either
in the Ordinary Course of Business or as otherwise permitted by this
Agreement, on a standby or documentary basis, or (b) for such other
purposes as Lender may approve from time to time in writing.

     (iii) Borrowers shall comply with all of the terms and
conditions imposed on Borrowers by Lender that are contained in any
LC Application or in any other agreement customarily or reasonably
required by Lender in connection with the issuance of any Letter of
Credit. If Lender shall honor any request for payment under a Letter
of Credit, Borrowers shall be jointly and severally obligated to pay
to Lender, in Dollars on the first Business Day following the date on
which payment was made by Lender (the “Reimbursement Date”), an
amount equal to the amount paid by Lender under such Letter of Credit
(or, if payment thereunder was made by Lender in a currency other
than Dollars, an amount equal to the Dollar equivalent of such
currency, as determined by Lender, as of the time of Lender’s payment
under such Letter of Credit, in each case), together with interest
from and after the Reimbursement Date until payment in full is made
by

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Borrowers at the Default Rate for Revolver Loans constituting Base
Rate Loans. Until Lender has received payment from Borrowers in
accordance with the foregoing provisions of this clause (iii),
Lender, in addition to all of its other rights and remedies under this
Agreement and any LC Application, shall be fully subrogated to the
rights and remedies of each beneficiary under such Letter of Credit
whose claims against Borrowers have been discharged with the proceeds
of such Letter of Credit. Whether or not Borrowers submit any Notice
of Borrowing to Lender, Borrowers shall be deemed to have requested
from Lender a Borrowing of Base Rate Loans in an amount necessary to
pay to Lender all amounts due Lender on any Reimbursement Date, and
whether or not any Default of Event of Default has occurred or
exists, the Revolver Commitment has been terminated, the funding of
the Borrowing deemed requested by Borrowers would result in, or
increase the amount of, any Out-of-Formula Condition or any of the
conditions set forth in Section 10 hereof are not satisfied.

     (iv) Borrowers assume all risks of the acts, omissions or
misuses of any Letter of Credit by the beneficiary thereof. The
obligation of Borrowers to reimburse Lender for any payment made by
Lender under a Letter of Credit shall be absolute, unconditional,
irrevocable and joint and several and shall be paid without regard to
any lack of validity or enforceability of any Letter of Credit or the
existence of any claim, setoff, defense or other right which
Borrowers may have at any time against a beneficiary of any Letter of
Credit. In connection with the issuance of any documentary Letter of
Credit, Lender shall not be responsible for the existence, character,
quality, quantity, condition, packing, value or delivery of any Goods
purported to be represented by any documents; any differences or
variation in the character, quality, quantity, condition, packing,
value or delivery of any goods from that expressed in the documents;
the form, validity, sufficiency, accuracy, genuineness or legal
effect of any documents or of any endorsements thereon, even if such
documents should in fact prove to be in any or all respects invalid,
insufficient, fraudulent or forged; the time, place, manner or order
in which shipment of Goods is made; partial or incomplete shipment
of, or failure or omission to ship, any or all of the goods referred
to in a documentary Letter of Credit or documents applicable thereto;
any deviation from instructions, delay, default or fraud by the
shipper and/or any Person in connection with any goods or any
shipping or delivery thereof; any breach of contract between the
shipper or vendors and a Borrower; errors, omissions, interruptions
or delays in transmission or delivery of any messages, by mail,
cable, telegraph, telex or otherwise, whether or not they be in
cipher, unless such errors, omissions, interruptions or delays are
the result of the gross negligence or willful misconduct of Lender;
errors in interpretation of technical terms; the misapplication by
the beneficiary of any Letter of Credit of the proceeds of any

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drawing under such Letter of Credit; or any consequences arising from
causes beyond the control of Lender, including any act or omission
(whether rightful or wrongful) of any present or future Governmental
Authority. The rights, remedies, powers and privileges of Lender
under this Agreement with respect to Letters of Credit shall
be in addition to, and cumulative with, all rights, remedies,
powers and privileges of Lender under any of the LC Documents.
Nothing herein shall be deemed to release Lender from any liability
or obligation that it may have in respect to any Letter of Credit
arising out of and directly resulting from its own gross negligence
or willful misconduct.

     (v) No Letter of Credit shall be extended or amended in any
respect that is not solely ministerial, unless all of the LC
Conditions are met as though a new Letter of Credit were being
requested and issued.

     (vi) Unless otherwise provided in any of the LC Documents, each
LC Application and each standby Letter of Credit shall be subject to
the Uniform Customs and Practice for Documentary Credits (1993
Revision), International Chamber of Commerce No. 500, and any
amendments or revisions thereto.

     (vii) From and after December 1, 2005, all Existing Letters of
Credit outstanding on such date shall be deemed to be issued by
Lender and to constitute Letters of Credit under this Agreement and
all amounts due and payable by any Obligor by reason of any payment
that is made by Lender under an Existing Letter of Credit shall
constitute LC Outstandings under this Agreement, and shall be subject
to all of the terms and conditions hereof.

     1.3.2. Cash Collateral Account. If any LC Outstandings,
whether or not then due or payable, shall for any reason be outstanding (i)
at any time when an Event of Default has occurred and is continuing, (ii) on
any date that Availability is less than zero, (iii) on or at any time after
the Commitment Termination Date, then Borrowers shall, on Lender’s request,
forthwith deposit with Lender, in cash, an amount equal to 105% of the
aggregate amount of all LC Outstandings. If Borrowers fail to make such
deposit on the first Business Day following Lender’s demand therefor, Lender
may advance such amount as Revolver Loans (whether or not the Commitment
Termination Date has occurred or an Out-of-Formula Condition is created
thereby). Such cash (together with any interest accrued thereon) shall be
held by Lender in the Cash Collateral Account and may be invested, in
Lender’s discretion, in Cash Equivalents. Each Borrower hereby pledges to
Lender and grants to Lender a security interest in all Cash Collateral held
in the Cash Collateral Account from time to time and all proceeds thereof,
as security for the payment of all Obligations, whether or not then due or
payable. From time to time after cash is deposited in the Cash Collateral
Account, Lender

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may apply Cash Collateral then held in the Cash Collateral
Account to the payment of any amounts, in such order as Lender may elect, as
shall be or shall become due and payable by Borrowers to Lender or any
Lender with respect to the LC Outstandings. Neither Borrowers nor any other
Person claiming by, through or under or on behalf of Borrowers shall have
any right to withdraw any of the Cash Collateral held in the Cash Collateral
Account,
including any accrued interest, provided that upon termination or expiration
of all Letters of Credit and the payment and satisfaction of all of the LC
Outstandings, any Cash Collateral remaining in the Cash Collateral Account
shall be returned to Borrowers unless an Event of Default then exists (in
which event Lender may apply such Cash Collateral to the payment of any
other Obligations outstanding, with any surplus to be turned over to
Borrowers).

     1.3.3. Indemnifications. In addition to any other indemnity
which Borrowers may have to Lender under any of the other Loan Documents and
without limiting such other indemnification provisions, Borrowers hereby
agree to indemnify and defend each Lender Indemnitee and to hold each of the
Lender Indemnitees harmless from and against any and all Claims which any of
the Lender Indemnitees (other than as the actual result of their own gross
negligence or willful misconduct) incur or be subject to as a consequence,
directly or indirectly, of (a) the issuance of, payment or failure to pay or
any performance or failure to perform under any Letter of Credit, (b) any
suit, investigation or proceeding as to which Lender is or may become a
party to as a consequence, directly or indirectly, of the issuance of any
Letter of Credit or the payment or failure to pay thereunder, or (c) Lender
following any instructions of any Borrower with respect to any Letter of
Credit or any Document received by Lender with reference to any Letter of
Credit.

     (b) By deleting Section 2.2.3 and of the Loan Agreement in its entirety and by
substituting in lieu thereof the following:

     2.2.3. LC Facility Fees. Borrowers shall pay to Lender,
through its Treasury and International Services Group, for Letters of
Credit, (i) a per annum fee equal to the Applicable Margin in effect from
time to time for LIBOR Loans based on the average amount available to be
drawn under all standby Letters of Credit outstanding and all standby
Letters of Credit that are paid or expire during the period of measurement,
payable monthly, in arrears, on the first Business Day of the following
calendar month; (ii) a per annum fee equal to the Applicable Margin in
effect from time to time for LIBOR Loans based on the average amount
available to be drawn under all documentary Letters of Credit outstanding
and all documentary Letters of Credit that are paid or expire during the
period of measurement, payable monthly, in arrears, on the first Business
Day of the following calendar month; and (iii) all normal and customary
charges associated with the issuance, amending, negotiating, payment,
processing and administration of Letters of Credit, payable as and when
assessed by Lender.

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     (c) By deleting the words “or Bank’s” in the third line of the second full paragraph of
Section 2.7 of the Loan Agreement.

     (d) By deleting the phrase “Bank or” and the word “other” in the fourth line of clause
(ii) of Section 3.1.1 of the Loan Agreement.

     (e) By deleting Section 3.4 of the Loan Agreement and by substituting in lieu thereof
the following:

     3.4. All Loans to Constitute One Obligation. The Revolver
Loans and all LC Outstandings shall constitute one general Obligation of
Borrowers and (unless otherwise expressly provided in any Security Document)
shall be secured by Lender’s Lien Upon all of the Collateral.

     (f) By deleting each reference to “$20,000,000” in Sections 7.2.5(i) and (ii) of the
Loan Agreement and by substituting in each instance a reference to $10,000,000.”

     (g) By deleting each reference to “$20,000,000” in Section 9.3.2 of the Loan Agreement
and by substituting in each instance a reference to “$10,000,000.”

     (h) By deleting the words “procure any Letter of Credit” in Section 10.1 and Section
10.3 of the Loan Agreement and by substituting in lieu thereof the words “issue any Letter
of Credit.”

     (i) By deleting the words “the procurement of any Letter of Credit” contained in
Section 10.16 and Section 10.2.6 of the Loan Agreement and by substituting in lieu thereof
the words “the issuance of any Letter of Credit.“ 

     (j) By adding the following new definitions of “Artesyn Japan”, “Artesyn Scandinavia”
and “Existing Letters of Credit” to Appendix A to the Loan Agreement in proper
alphabetical sequence:

     Artesyn Japan — Artesyn Technologies Japan KK, a Japanese
company.

     Artesyn Scandinavia — Artesyn Communication Products
Scandinavia AB, a Swedish company.

     Existing Letters of Credit — the Letters of Credit issued for
the account of Borrowers pursuant to the Loan Agreement by Lender or any of
its predecessors-in interest and outstanding on February 2, 2006.

     (k) By deleting the definitions of “Applicable Margin,” “First-Tier Foreign
Subsidiary,” “LC Application,” “LC Conditions,” “LC Documents,” “LC Outstandings,”

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“LC Request,” “Lease Reserve,” “Letter of Credit” and “Obligations” contained in Appendix
A to the Loan Agreement and by substituting in lieu thereof the following in proper
alphabetical sequence:

     Applicable Margin — a percentage equal to 2.00% with respect to
Revolver Loans that are LIBOR Loans, 0.25% with respect to Revolver Loans
that are Base Rate Loans and 0.250% with respect to the Commitment Fee
payable to Lender pursuant to Section 2.2.2 of the Agreement;
provided that, at such time that a Letter of Credit is issued on any
Borrower’s request or Lender makes any Revolver Loans to Borrower upon the
request (or deemed request) of Borrower, the Applicable Margin shall be
adjusted based upon the Average Adjusted Availability for the immediately
preceding Fiscal Quarter of Borrowers, as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Applicable Margin	 	 	Applicable Margin	 	 	 	 
	 	 	 	 	 	 	 	for Revolver Loans	 	 	for Revolver Loans	 	 	 	 
	 	 	 	 	Average Adjusted	 	 	that are LIBOR	 	 	that are Base Rate	 	 	Applicable Margin	 
	 	Pricing Level	 	 	Availability	 	 	Loans	 	 	Loans	 	 	for Commitment Fee	 
	 	1

	 	 	Less than

$30,000,000
	 	 	 	2.75	%	 	 	 	1.00	%	 	 	 	0.500	%	 
	 	2

	 	 	Greater than or
equal to
$30,000,000 but
less than or equal
to $40,000,000
	 	 	 	2.50	%	 	 	 	0.75	%	 	 	 	0.500	%	 
	 	3

	 	 	Greater than

$40,000,000 but

less than

$50,000,000
	 	 	 	2.25	%	 	 	 	0.50	%	 	 	 	0.375	%	 
	 	4

	 	 	Greater than or
equal to
$50,000,000
	 	 	 	2.00	%	 	 	 	0.25	%	 	 	 	0.250	%	 
	 

The Applicable Margin shall be subject to reduction or increase, as
applicable and as set forth above, on a quarterly basis according to the
performance of Borrowers as measured by the Average Adjusted Availability
for the immediately preceding Fiscal Quarter of Borrowers. Except as set
forth in the last sentence hereof, any such increase or reduction in the
Applicable Margin provided for herein shall be effective 3 Business Days
after receipt by Lender of the applicable financial statements and
corresponding Compliance Certificate. If the financial statements and the
Compliance Certificate of Borrowers setting forth the Average Adjusted
Availability and are not received by Lender by the date required pursuant to
Section 9.1.3 of the Agreement, the Applicable Margin shall be determined as
if Average

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Adjusted Availability is less than $30,000,000 until such time as
such financial statements and Compliance Certificate are received and any
Event of Default resulting from a failure to deliver timely such financial
statements or Compliance Certificate is waived in writing by Lender;
provided, however, that Lender shall be entitled to accrue
and receive interest at the Default Rate to the extent authorized by Section
2.1.5 of the Agreement and, on each date that the Default Rate accrues on
any Revolver Loan, the Applicable Margin on such date for such Revolver Loan
shall be the Applicable Margin that would apply if Average Adjusted
Availability was less than $30,000,000
(without regard to the actual Average Adjusted Availability). For the final
Fiscal Quarter of any Fiscal Year of Borrowers, Borrowers may provide the
unaudited financial statements of Borrowers, subject only to year-end
adjustments, for the purpose of determining the Applicable Margin;
provided, however, that if, upon delivery of the annual
audited financial statements required to be submitted by Borrowers to Lender
pursuant to Section 9.1.3(i) of the Agreement, Borrowers have not met the
criteria for reduction of the Applicable Margin that was applied pursuant to
the terms hereinabove for the final Fiscal Quarter of the Fiscal Year of
Borrowers then ended, then (a) such Applicable Margin reduction shall be
terminated and, effective on the first day of the month following receipt by
Lender of such audited financial statements, the Applicable Margin shall be
the Applicable Margin that would have been in effect if such reduction had
not been implemented based upon the unaudited financial statements of
Borrowers for the final Fiscal Quarter of the Fiscal Year of Borrowers then
ended, and (b) Borrowers shall pay to Lender, on the first day of the month
following receipt by Lender of such audited financial statements, an amount
equal to the difference between the amount of interest and fees that would
have been paid using the Applicable Margin determined based upon such
audited financial statements and the amount of interest and fees actually
paid during the period in which the reduction of the Applicable Margin was
in effect based upon the unaudited financial statements for the final Fiscal
Quarter of the Fiscal Year of Borrowers then ended.

     First-Tier Foreign Subsidiary  — Artesyn Cayman, Artesyn
Japan, Artesyn Scandinavia, Artesyn Scotland and each other Foreign
Subsidiary in which more than 50% of its outstanding Voting Securities are
owned by a Borrower, by one or more Domestic Subsidiaries or by one or more
Borrowers and Domestic Subsidiaries.

     LC Application — an application by Borrowers to Lender,
pursuant to a form approved by Lender, for the issuance of a Letter of
Credit, that is submitted to Lender at least 3 Business Days prior to the
requested issuance of such Letter of Credit.

     LC Conditions — the following conditions, the satisfaction of
each of which is required before Lender shall be obligated to issue a Letter
of Credit: (i) each of the conditions set forth in Section 10 of the
Agreement has been

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and continues to be satisfied, including the absence of
any Default or Event of Default; (ii) the proposed Letter of Credit
(drawings under which shall be made by sight, as opposed to time, drafts) is
in form and substance satisfactory to Lender; (iii) after giving effect to
the issuance of the requested Letter of Credit and all other unissued
Letters of Credit for which an LC Application has been signed by Borrower
and approved by Lender, the LC Outstanding would not exceed $5,000,000 (as
such amount may be modified from time to time at the written direction of
Borrowers) and no Out-of-Formula Condition would exist, and, if no Revolver
Loans are outstanding, the LC Outstandings do not, and would not upon the
issuance of the requested Letter of Credit, exceed the Borrowing Base; (iv) the expiration date
of the Letter of Credit does not extend beyond the earlier to occur of
(a)(1) 365 days from the date of issuance in the case of standby Letters of
Credit, or (2) 150 days from the date of issuance in the case of documentary
Letters of Credit, or (b) the 10th Business Day prior to the last Business
Day of the Term; and (v) the currency in which payment is to be made under
the Letter of Credit is Dollars.

     LC Documents — any and all agreements, instruments and
documents (including an LC Application) required by Lender to be executed by
Borrowers or any other Person and delivered to Lender for the issuance,
amendment or renewal of a Letter of Credit.

     LC Outstandings — on any date of determination thereof, an
amount (in Dollars) equal to the sum of (without duplication) (i) all
amounts then due and payable by any Obligor on such date by reason of any
payment made by Lender under a Letter of Credit and that has not been repaid
to Lender, plus (ii) the aggregate undrawn amount of all Letters of
Credit then outstanding or for which an LC Application has been delivered to
and accepted by Lender, plus (iii) all fees and other amounts due or
to become due in respect of Letters of Credit outstanding on such date.

     LC Request — a Letter of Credit request form that may be
required by Lender from time to time, pursuant to which Borrower would
request the issuance of a Letter of Credit.

     Lease Reserve — a reserve established by Lender in respect of
certain Obligations of Borrowers to the leasing division of Lender in such
amount as Lender may, in its reasonable credit judgment, determine to be
appropriate.

     Letter of Credit — a standby or documentary letter of credit
issued by Lender for the account of Borrowers, and including the Existing
Letters of Credit.

     Obligations — in each case, whether now in existence or
hereafter arising, (i) the principal of, and interest and premium, if any,
on, the Revolver Loans; (ii) all LC Outstandings and all other obligations
of any Obligor to

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Lender arising in connection with the issuance of any
Letter of Credit; (iii) all Debt, liabilities and other obligations of
Borrowers to Lender or any Affiliate of Lender under or in connection with
any Banking Relationship Debt; and (iv) all other Debts, covenants, duties,
overdrafts and obligations (including Contingent Obligations) now or at any
time or times hereafter owing by any Obligor to Lender or any Affiliate of
Lender under or pursuant to the Agreement or any of the other Loan Documents
or otherwise, whether evidenced by any note or other writing, whether
arising from any extension of credit, opening of a letter of credit,
acceptance, loan, guaranty, indemnification or otherwise, and whether direct
or indirect, absolute or contingent, due or to become due, primary or
secondary, or joint or several, including all interest, charges, expenses,
fees or other sums (including Extraordinary Expenses) chargeable to any or all Obligors hereunder or
under any of the other Loan Documents.

     (l) By deleting the definitions of “Bank” and “LC Support” from Appendix A to
the Loan Agreement.

     4. Consent. Borrowers have informed Lender of the dissolution of Real-Time
Digital, Inc., a New Jersey corporation and a wholly-owned Subsidiary of Communication Products, by
the recording of a Certificate of Dissolution with the New Jersey Secretary of State on October 27,
2005 (the “Dissolution”). Borrowers have further informed Lender of the formation of Artesyn
Technologies Japan KK, a Japanese company and Artesyn Communication Products Scandinavia AB, a
Swedish company, both of which are First-Tier Foreign Subsidiaries (the “Formations”). The
Dissolution and the Formations are prohibited pursuant to Section 9.2.1 of the Loan Agreement
without Lender’s prior written consent. Subject to the satisfaction of the conditions precedent
set forth in Section 10 of this Amendment, Lender hereby consents to the Dissolution and the
Formations and acknowledges and agrees that neither the Dissolution nor the Formations shall
constitute a Default or Event of Default under the Loan Agreement or other Loan Documents.

     5. Ratification and Reaffirmation. Borrowers hereby ratify and reaffirm the
Obligations, each of the Loan Documents and all of Borrowers’ covenants, duties, indebtedness and
liabilities under the Loan Documents.

     6. Acknowledgments and Stipulations. Each Borrower acknowledges and stipulates that
the Loan Agreement and the other Loan 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 such Borrower); the security interests and liens granted by
such Borrower in favor of Lender are duly perfected, first priority security interests and liens;
and the unpaid principal amount of the Revolver Loan on and as of December 1, 2005, totaled $0.

     7. Representations and Warranties. Each Borrower represents and warrants to Lender,
to induce Lender to enter into this Amendment, that no Default or Event of Default exists on the
date hereof; the execution, delivery and performance of this Amendment have been duly

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authorized by all requisite corporate action on the part of such Borrower and this Amendment has been duly
executed and delivered by such Borrower; and all of the representations and warranties made by such
Borrower in the Loan Agreement are true and correct on and as of the date hereof.

     8. Reference to Loan Agreement. Upon the effectiveness of this Amendment, each
reference in the Loan Agreement to “this Agreement,” “hereunder,” or words of like import shall
mean and be a reference to the Loan Agreement, as amended by this Amendment.

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

     10. Conditions Precedent. The effectiveness of the amendments contained in Section 3
hereof are subject to the satisfaction of each of the following conditions precedent, in form and
substance satisfactory to Lender, unless satisfaction thereof is specifically waived in
writing by Lender:

     (a) Lender shall have received from Borrowers and Guarantors the duly executed
Amendment;

     (b) Lender shall have received a duly executed Pledge Agreement in the form attached
hereto as Exhibit A with respect to 60% of the Equity Interests of Artesyn Japan, a
duly executed Pledge Agreement in the form attached hereto as Exhibit B with respect
to 65% of the Equity Interests of Artesyn Scandinavia, a duly executed Irrevocable Stock
Power and Assignment in the form attached hereto as Exhibit C with respect to such
Equity Interests of each of Artesyn Japan and Artesyn Scandinavia, and original stock
certificates with respect to such Equity Interests of Artesyn Japan and Artesyn Scandinavia;
and

     (c) Lender shall have received a certificate from the Secretary of each Borrower and
each Guarantor (Borrowers and Guarantors are sometimes collectively referred to herein as
the “Obligors” and each individually as an “Obligor”), certifying to Lender that appropriate
resolutions have been entered into by the Board of Directors of such Obligor incident hereto
and that the officers of such Obligor who have executed this Amendment and each Pledge
Agreement are duly authorized by the Board of Directors of such Obligor for and on behalf of
such Obligor to execute and deliver this Amendment, each Pledge Agreement and such other
documents, instruments and agreements executed in connection herewith, and to bind such
Obligor accordingly thereby.

     11. Effectiveness; Governing Law. This Amendment shall be effective upon acceptance
by Lender in Atlanta, Georgia (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 New York.

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

     13. No Novation, etc.. Except as otherwise expressly provided in this Amendment,
nothing herein shall be deemed to amend or modify any provision of the Loan Agreement or any of

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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
Loan Agreement as herein modified shall continue in full force and effect.

     14. 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.

     15. 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. Without limiting the
generality of the foregoing, each Borrower agrees to execute such
documents, instruments and agreements as Lender may require in order to evidence or effectuate the transactions described
in the Recitals and Section 3 of this Amendment.

     16. 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.

     17. Release of Claims. To induce Lender to enter into this Amendment, each Borrower
hereby releases, acquits and forever discharges Lender, and all officers, directors, agents,
employees, successors and assigns of Lender, 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 Lender arising under or in connection with any of the Loan Documents or otherwise.
Each Borrower represents and warrants to Lender that such Borrower has not transferred or assigned
to any Person any claim that such Borrower ever had or claimed to have against Lender.

     18. 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.

[Signatures on following page]

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

	 	 	 
	 	 	
BORROWERS:
	ATTEST:	 	
ARTESYN TECHNOLOGIES, INC.
	 
	/s/ Gary Larsen
 

Secretary

[CORPORATE SEAL]	 	
By: /s/ Joseph M. O’Donnell
 

Name: Joseph M. O’Donnell

Title: President & Chief Executive Officer
	ATTEST:	 	
ARTESYN NORTH AMERICA, INC.
	 
	/s/ Gary Larsen
 

Secretary

[CORPORATE SEAL]	 	
By: /s/ Joseph M. O’Donnell
 

Name: Joseph M. O’Donnell

Title: President & Chief Executive Officer
	ATTEST:	 	
ARTESYN COMMUNICATION PRODUCTS, INC.
	 
	/s/ Gary Larsen
 

Secretary

[CORPORATE SEAL]	 	
By: /s/ Joseph M. O’Donnell
 

Name: Joseph M. O’Donnell

Title: President & Chief Executive Officer
	 	 	
GUARANTORS:
	 
	ATTEST:	 	
ARTESYN ASSET MANAGEMENT, INC.
	/s/ David I. Libow
 

Treasurer

[CORPORATE SEAL]	 	
By: /s/ John Slyne
 

Name: John Slyne

Title: President
	 
	ATTEST:	 	
ARTESYN DELAWARE, INC.
	/s/ Gary Larsen
 

Secretary

[CORPORATE SEAL]	 	
By: /s/ Joseph M. O’Donnell
 

Name: Joseph M. O’Donnell

Title: President & Chief Executive Officer

-13-

 

	 	 	 
	ATTEST:	 	
ARTESYN TECHNOLOGIES, INC.
	/s/ Gary Larsen
 

Secretary

[CORPORATE SEAL]	 	
By: /s/ Joseph M. O’Donnell
 

Name: Joseph M. O’Donnell

Title: President & Chief Executive Officer
	 
	ATTEST:	 	
ARTESYN DELAWARE, LLC
	/s/ Gary Larsen
 

Secretary

[COMPANY SEAL]	 	
By: /s/ Joseph M. O’Donnell
 

Name: Joseph M. O’Donnell

Title: President & Chief Executive Officer
	 
	 	 	
LENDER:
	 	 	
BANK OF AMERICA, N.A.

(“Lender”)
	 
	 	 	
By: /s/ John Olson
 

Name: John Olson

Title:  Vice President

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EXHIBIT A

PLEDGE AGREEMENT

     This PLEDGE AGREEMENT (this “Agreement”) is made as of February 2, 2006, by and between
ARTESYN NORTH AMERICA, INC., a Delaware corporation (“Pledgor”), and BANK OF AMERICA, N.A., a
national banking association (“Lender”).

Recitals:

     Pledgor, Artesyn Technologies, Inc., a Florida corporation, and Artesyn Communication
Products, Inc., a Wisconsin corporation (collectively, the “Borrowers”), and Lender have entered
into that certain Loan and Security Agreement dated March 28, 2003 (as at any time amended, the
“Loan Agreement”), pursuant to which Lender may from time to time make loans or extend other
financial accommodations to or for the benefit of Borrowers.

     It is a condition to Lender’s willingness to extend further loans and other financial
accommodations to or for the benefit of Borrowers that Pledgor execute and deliver this Agreement.
To induce Lender to extend further loans pursuant to the Loan Agreement, Pledgor has agreed to
grant a continuing security interest in and to the Pledged Collateral (as hereinafter defined) as
security for the timely payment and performance of the Secured Obligations.

     NOW, THEREFORE, for Ten Dollars ($10.00) in hand paid to Pledgor and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and to secure the
timely payment and performance of the Secured Obligations (as hereinafter defined), Pledgor agrees
as follows:

     1. Definitions. Capitalized terms used herein, unless otherwise defined, shall have
the meaning ascribed to them in the Loan Agreement. As used herein, the following terms shall have
the following meanings:

     “Company” shall mean Artesyn Technologies Japan KK, a Japanese company.

     “Pledged Collateral” shall have the meaning ascribed to in Section 2 hereof.

     “Power” shall have the meaning ascribed to it in Section 2 hereof.

     “Secured Obligations” shall mean all of the Obligations under (and as defined
in) the Loan Agreement and all obligations of Pledgor now or hereafter existing under the
Loan Agreement or this Agreement.

     2. Pledge; Lender’s Duties.

          (a) Pledgor hereby pledges, assigns, transfers, sets over and delivers to Lender, and hereby
grants to Lender, a security interest in sixty percent (60%) of the Equity Interests of the
Company, accompanied by stock powers (“Powers”) duly executed in blank, with signatures properly
guaranteed, and all proceeds thereof and all dividends at anytime payable in

 

 

connection therewith (said Equity Interests, Powers, proceeds and dividends hereinafter
collectively called the “Pledged Collateral”) as security for the due and punctual payment and
performance of the Secured Obligations. With respect to the Company and notwithstanding anything
to the contrary set forth in this Agreement, the Pledged Collateral shall not exceed sixty percent
(60%) of the total Equity Interests of the Company.

          (b) Lender shall have no duty with respect to any of the Pledged Collateral other than the
duty to use reasonable care in the safe custody of any tangible items of the Pledged Collateral in
its possession. Without limiting the generality of the foregoing, Lender shall be under no
obligation to sell any of the Pledged Collateral or otherwise to take any steps necessary to
preserve the value of any of the Pledged Collateral or to preserve rights in the Pledged Collateral
against any other Persons, but may do so at its option, and all expenses incurred in connection
therewith shall be for the sole account of Pledgor.

     3. Voting Rights. During the term of this Agreement, and so long as no Event of
Default shall exist, Pledgor shall have the right to vote all or any portion of the pledged Equity
Interests on all corporate questions for all purposes not inconsistent with the terms of this
Agreement or any of the other Loan Documents. To that end, if Lender transfers all or any portion
of the Pledged Collateral, into its name or the name of its nominee, to the extent authorized to do
so under this Agreement or any of the other Loan Documents, Lender shall, upon the request of
Pledgor, unless an Event of Default shall have occurred, execute and deliver or cause to be
executed and delivered to Pledgor, proxies with respect to the Pledged Collateral. Pledgor hereby
grants to Lender, effective upon the occurrence and during the continuation of any Event of
Default, an IRREVOCABLE PROXY pursuant to which Lender shall be entitled to exercise all voting
powers pertaining to the Pledged Collateral, including to call and attend all meetings of the
shareholders of the Company to be held from time to time with full power to act and vote in the
name, place and stead of Pledgor (whether or not the Equity Interests shall have been transferred
into its name or the name of its nominee or nominees), give all consents, waivers and ratifications
in respect of the Pledged Collateral and otherwise act with respect thereto as though it were the
outright owner thereof, and any and all proxies theretofore executed by Lender shall terminate and
thereafter be null and void and of no effect whatsoever.

     4. Collection of Dividend Payments. During the term of this Agreement, and so long as
there shall not occur or exist any Event of Default, Pledgor shall have the right to receive and
retain any and all dividends payable by the Company on account of any of the Pledged Collateral
except as otherwise provided in the Loan Documents. Upon the occurrence and during the
continuation of any Event of Default, all dividends payable by the Company on account of any of the
Pledged Collateral shall be paid to Lender and any such sum received by Pledgor shall be deemed to
be held by Pledgor in trust for the benefit of Lender and shall be forthwith turned over to Lender
for application by Lender to the Secured Obligations in such order of application as is specified
in the Loan Agreement.

     5. Representations and Warranties of Pledgor. Pledgor warrants and represents to
Lender as follows (which representations and warranties shall be deemed continuing): (a) Pledgor
is the legal and beneficial owner of the Pledged Collateral; (b) all of the shares of the Equity
Interests have been duly and validly issued, are fully paid and nonassessable, and are

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owned by Pledgor free of any Liens except for Permitted Liens and Lender’s security interest
hereunder; (c) the Equity Interests constitutes sixty percent (60%) of the issued and outstanding
capital stock of the Company; (d) there are no contractual or charter restrictions upon the voting
rights or upon the transfer of any of the Pledged Collateral; (e) Pledgor has the right to vote,
pledge and grant a security interest in or otherwise transfer the Pledged Collateral without the
consent of any other party and free of any Liens other than Permitted Liens and applicable
restrictions imposed by any Governmental Body and without any restriction under the by-laws or
charter of Pledgor or the Company or any agreement among Pledgor’s or the Company’s shareholders;
(f) this Agreement has been duly authorized, executed and delivered by Pledgor and constitutes a
legal, valid and binding obligation of Pledgor, enforceable in accordance with its terms except to
the extent that the enforceability thereof may be limited by bankruptcy, insolvency or other
similar laws of general application affecting the enforcement of creditors’ rights; (g) the
execution, delivery and performance by Pledgor of this Agreement and the exercise by Lender of its
rights and remedies hereunder do not and will not result in the violation of the by-laws or charter
of Pledgor, any agreement, indenture, instrument or Applicable Law by which Pledgor or the Company
is bound or to which Pledgor or the Company is subject (except Pledgor makes no representation or
warranty about Lender’s prospective compliance with any federal or state laws or regulations
governing the sale or exchange of securities); and (h) no consent, filing, approval, registration
or recording is required (x) for the pledge by Pledgor of the Pledged Collateral pursuant to this
Agreement or (y) to perfect the Lien created by this Agreement.

     6. Affirmative Covenants of Pledgor. Until all of the Secured Obligations have been
satisfied in full and the Loan Agreement has been terminated, Pledgor covenants that it will: (a)
warrant and defend at its own expense Lender’s right, title, and security interest in and to the
Pledged Collateral against the claims of any Person; (b) promptly deliver to Lender all written
notices with respect to the Pledged Collateral, and will promptly give written notice to Lender of
any other notices received by Pledgor with respect to the Pledged Collateral; and (c) deliver to
Lender promptly to hold under this Agreement any shares of the capital stock of the Company
subsequently acquired by Pledgor, whether acquired by Pledgor by virtue of the exercise of any
stock options included within the Pledged Collateral or otherwise, provided,
however, that Pledgor will not pledge or deliver any such shares of the Company which would
cause the Pledged Collateral to exceed sixty percent (60%) of the total Equity Interests of the
Company.

     7. Negative Covenants of Pledgor. Until all of the Secured Obligations have been
satisfied in full and the Loan Agreement has been terminated, Pledgor covenants that it will not,
without the prior written consent of Lender, (a) sell, convey or otherwise dispose of any of the
Pledged Collateral or any interest therein; (b) incur or permit to be incurred any Lien whatsoever
upon or with respect to any of the Pledged Collateral or the proceeds thereof, other than the
security interest created hereby and Permitted Liens; (c) consent to the issuance by the Company
of any new stock; and (d) consent to any merger or other consolidation of the Company with or into
any corporation or other entity other than as permitted under the Loan Agreement.

     8. Subsequent Changes Affecting Pledged Collateral. Pledgor represents to Lender that
Pledgor has made its own arrangements for keeping informed of changes or potential

-3-

 

changes affecting the Pledged Collateral (including rights to convert, rights to subscribe, payment
of dividends, reorganization or other exchanges, tender offers and voting rights), and Pledgor
agrees that Lender shall have no responsibility or liability for informing Pledgor of any such
changes or potential changes or for taking any action or omitting to take any action with respect
thereto.

     9. Equity Interests Adjustments. If during the term of this Agreement any stock
dividend, reclassification, readjustment or other change is declared or made in the capital
structure of the Company, all new, substituted and additional shares, or other securities, issued
by reason of any such change or exercise shall, if received by Pledgor, be held in trust for
Lender’s benefit and shall be promptly delivered to and held by Lender under the terms of this
Agreement in the same manner as the Pledged Collateral originally pledged hereunder,
provided, however, that to the extent any such shares would cause the Pledged
Collateral to exceed sixty percent (60%) of the total Equity Interests of the Company, Pledgor
shall neither hold such shares for Lender’s benefit nor deliver such shares to Lender as Pledged
Collateral.

     10. Warrants, Options and Rights. If during the term of this Agreement subscription
warrants or any other rights or options shall be issued or exercised in connection with the Pledged
Collateral, then such warrants, rights and options shall be immediately assigned by Pledgor to
Lender and all certificates evidencing new stock or other securities so acquired by Pledgor shall
be immediately delivered to and held by Lender to be held under the terms of this Agreement in the
same manner as the Pledged Collateral originally pledged hereunder.

     11. Registration. If Lender determines that it is required to register under or
otherwise comply in any way with the Securities Act of 1933, as amended (the “Securities Act”) or
any similar federal or state law, with respect to the securities included in the Pledged Collateral
prior to sale thereof by Lender, then upon the occurrence and during the continuation of an Event
of Default, Pledgor will use its best efforts to cause any such registration to be effectively
made, at no expense to Lender, and to continue such registration effective for such time as may be
reasonably necessary in the reasonable opinion of Lender, and will reimburse Lender for any expense
incurred by Lender, including reasonable attorneys’ fees and accountants’ fees and expenses, in
connection therewith.

     12. Consent. Pledgor hereby consents that from time to time, before or after the
occurrence or existence of any Default or Event of Default, with or without notice to or assent
from Pledgor, any other security at any time held by or available to Lender for any of the Secured
Obligations may be exchanged, surrendered, or released, and any of the Secured Obligations may be
changed, altered, renewed, extended, continued, surrendered, compromised, waived or released, in
whole or in part, as Lender may see fit, and Pledgor shall remain bound under this Agreement and
under the other Loan Documents notwithstanding any such exchange, surrender, release, alteration,
renewal, extension, continuance, compromise, waiver or inaction, extension of further credit or
other dealing.

     13. Remedies Upon Default. Upon the occurrence and during the continuation of any
Event of Default, (i) Lender shall have, in addition to any other rights given by law or the rights
given hereunder or under each of the other Loan Documents, all of the rights and remedies

-4-

 

with respect to the Pledged Collateral of a secured party under the UCC and (ii) Lender may cause
all or any part of the Equity Interests held by it to be transferred into its name or the name of
its nominee or nominees. In addition, upon the occurrence and during the continuation of an Event
of Default, Lender may sell or cause the Pledged Collateral, or any part thereof, which shall then
be or shall thereafter come into Lender’s possession or custody, to be sold at any broker’s board
or at public or private sale, in one or more sales or lots, at such price as Lender may deem best,
and for cash or on credit or for future delivery, and the purchaser of any or all of the Pledged
Collateral so sold shall thereafter hold the same absolutely, free from any claim, encumbrance or
right of any kind whatsoever or Pledgor or arising through Pledgor. If any of the Pledged
Collateral is sold by Lender upon credit or for future delivery, Lender shall not be liable for the
failure of the purchaser to pay the same and in such event Lender may resell such Pledged
Collateral. Unless the Pledged Collateral threatens to decline speedily in value or is or becomes
of a type sold on a recognized market, Lender will give Pledgor reasonable notice of the time and
place of any public sale thereof, or of the time after which any private sale or other intended
disposition is to be made. Any sale of the Pledged Collateral conducted in conformity with
reasonable commercial practices of banks, insurance companies or other financial institutions
disposing of property similar to the Pledged Collateral shall be deemed to be commercially
reasonable. Any requirements of reasonable notice shall be met if such notice is mailed to
Pledgor, as provided in Section 21 below, at least ten (10) days before the time of the sale or
disposition. Any other requirement of notice, demand or advertisement for sale is, to the extent
permitted by Applicable Law, waived. Lender may, in its own name, or in the name of a designee or
nominee, buy at any public sale of the Pledged Collateral and, if permitted by Applicable Law, buy
at any private sale thereof. Pledgor will pay to Lender on demand all expenses (including court
costs and reasonable attorneys’ fees and expenses) of, or incident to, the enforcement of any of
the provisions hereof and all other charges due against the Pledged Collateral, including taxes,
assessments or Liens upon the Pledged Collateral and any expenses, including transfer or other
taxes, arising in connection with any sale, transfer or other disposition of Pledged Collateral.
In connection with any sale of Pledged Collateral by Lender, Lender shall have the right to execute
any document or form, in its name or in the name of Pledgor, which may be necessary or desirable in
connection with such sale, including Form 144 promulgated by the Securities and Exchange
Commission. In view of the fact that federal and state securities laws may impose certain
restrictions on the method by which a sale of the Pledged Collateral may be effected Pledgor agrees
that Lender may, upon the occurrence and during the continuation of an Event of Default, attempt to
sell all or any part of the Pledged Collateral by means of a private placement restricting the
bidders and prospective purchasers to those who will represent and agree that they are accredited
investors (as defined in Regulation D promulgated under the Securities Act) purchasing for
investment only and not for distribution. Pledgor agrees that any such private sales may be at
prices and other terms less favorable to the seller than if sold at public sales and that such
private sales shall not by reason thereof be deemed not to have been made in a commercially
reasonable manner. Lender shall be under no obligation to delay a sale of any of the Pledged
Collateral for the period of time necessary to permit the issuer of such securities to register
such securities for publi
c sale under the Securities Act even if the issuer would agree to do so.
Lender shall apply the cash proceeds actually received from any sale or other disposition to the
reasonable expenses of retaking, holding, preparing for sale, selling and the like, to reasonable
attorneys’ fees, and all legal expenses, travel and other expenses which

-5-

 

may be incurred by Lender in attempting to collect the Secured Obligations or to enforce this
Agreement or in the prosecution or defense of any action or proceeding related to the subject
matter of this Agreement; and then to the Secured Obligations in the manner authorized by the Loan
Agreement.

     14. Redemption; Marshaling. Pledgor hereby waives and releases to the fullest extent
permitted by Applicable Law any right of equity of redemption with respect to the Pledged
Collateral before or after a sale conducted pursuant to Section 13 hereof. Pledgor agrees that
Lender shall not be required to marshal any present or future security (including this Agreement
and the Pledged Collateral pledged hereunder) for, or guaranties of, the Secured Obligations or any
of them, or to resort to such security or guaranties in any particular order; and all of Lender’s
rights hereunder and in respect of such security and guaranties shall be cumulative and in addition
to all other rights, however existing or arising. To the fullest extent that it lawfully may,
Pledgor hereby agrees that it will not invoke any law relating to the marshaling of collateral
which might cause delay in or impede the enforcement of Lender’s rights under this Agreement or
under any other instrument evidencing any of the Secured Obligations or under which any of the
Secured Obligations is outstanding or by which any of the Secured Obligations is secured or
guaranteed, and to the fullest extent that it lawfully may, Pledgor hereby irrevocably waives the
benefits of all such laws.

     15. Term. This Agreement shall become effective only when accepted by Lender and,
when so accepted, shall constitute a continuing agreement and shall remain in full force and effect
until the Loan Agreement is terminated and all of the Secured Obligations have been fully and
finally paid, satisfied and discharged, at which time this Agreement shall terminate and Lender
shall deliver to Pledgor, at Pledgor’s expense, (i) such of the Pledged Collateral as shall not
have been sold or otherwise applied pursuant to this Agreement and (ii) such termination statements
and other release documents as may be requested by Pledgor to evidence the termination of Lender’s
security interest in the Pledged Collateral. Notwithstanding the foregoing, in no event shall any
termination of this Agreement terminate any indemnity set forth in this Agreement or any of the
other Loan Documents, all of which indemnities shall survive any termination of this Agreement or
any of other Loan Documents in accordance with their respective terms.

     16. Rules and Construction. The singular shall include the plural and vice versa, and
any gender shall include any other gender as the text shall indicate. All references to
“including” shall mean “including, without limitation.” Whenever in this Agreement the word
“stock” or “capital stock” or other similar word or phrase is used in connection with a Person
referring to equity ownership interests in such Person, such word or phrase shall also be deemed to
include a reference to membership interests, each reference to a “corporation” shall also be deemed
to include a reference to a limited liability company, each reference to “shareholders” of a Person
shall also be deemed to include a reference to members and each reference to “certificate of
incorporation” or “articles of incorporation” or “bylaws” shall also be deemed to include a
reference to “certificate of formation” and “operating agreement” or other constituent documents of
a limited liability company.

-6-

 

     17. Successors and Assigns. This Agreement shall be binding upon Pledgor and its
successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

     18. Construction and Applicable Law. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under Applicable Law,
but, if any provision of this Agreement shall be held to be prohibited or invalid under any
Applicable Law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Agreement. This Agreement shall be governed by and construed in accordance with the laws of
the State of New York (without giving effect to the conflict of laws principles thereof other than
Section 5-1401 of the New York General Obligations Law).

     19. Cooperation and Further Assurances. Pledgor agrees that it will cooperate with
Lender and will, upon Lender’s request, execute and deliver, or cause to be executed and delivered,
all such other stock powers, instruments, financing statements, certificates, legal opinions and
other documents, and will take all such other action as Lender may request from time to time, in
order to carry out the provisions and purposes hereof, including delivering to Lender, if requested
by Lender, irrevocable proxies with respect to the Equity Interests in form satisfactory to Lender.
Until receipt thereof, this Agreement shall constitute Pledgor’s proxy to Lender or its nominee to
vote all shares of the Equity Interests then registered in Pledgor’s name (subject to Pledgor’s
voting rights under Section 3 hereof).

     20. Lender’s Exoneration. Under no circumstances shall Lender be deemed to assume any
responsibility for or obligation or duty with respect to any part or all of the Pledged Collateral
of any nature or kind, other than the physical custody thereof, or any matter or proceedings
arising out of or relating thereto. Lender shall not be required to take any action of any kind to
collect, preserve or protect its or Pledgor’s rights in the Pledged Collateral or against other
parties thereto. Lender’s prior recourse to any part or all of the Pledged Collateral shall not
constitute a condition of any demand, suit or proceeding for payment or collection of the Secured
Obligations.

     21. Notices. All notices, requests and demand to or upon either party hereto shall be
given in the manner and become effective as stipulated in the Loan Agreement.

     22. Pledgor’s Obligations Not Affected. The obligations of Pledgor hereunder shall
remain in full force and effect without regard to, and shall not be impaired by (a) any bankruptcy,
insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of
Pledgor; (b) any exercise or nonexercise, or any waiver, by Lender of any right, remedy, power or
privilege under or in respect of any of the Secured Obligations or any security thereof (including
this Agreement); (c) any amendment to or modification of the Loan Agreement, the other Loan
Documents or any of the Secured Obligations; (d) any amendment to or modification of any instrument
(other than this Agreement) securing any of the Secured Obligations; or (e) the taking of
additional security for, or any guaranty of, any of the Secured Obligations or the release or
discharge or termination of any security or guaranty for any of the Secured Obligations, whether or
not Pledgor shall have notice or knowledge of any of the foregoing.

-7-

 

     23. No Waiver, Etc. No act, failure or delay by Lender shall constitute a waiver of
any of its rights and remedies hereunder or otherwise. No single or partial waiver by Lender of
any Default or Event of Default or right or remedy which Lender may have shall operate as a waiver
of any other Default, Event of Default, right or remedy or of the same Default, Event of Default,
right or remedy on a future occasion. Pledgor hereby waives presentment, notice of dishonor and
protest of all instruments included in or evidencing any of the Secured Obligations or the Pledged
Collateral, and any and all other notices and demands whatsoever (except as expressly provided
herein).

     24. Section Headings. The section headings herein are for convenience of reference
only, and shall not affect in any way the interpretation of any of the provisions hereof.

     25. Lender Appointed Attorney-In-Fact. Pledgor hereby constitutes and appoints
Lender, with full power of substitution, Pledgor’s attorney-in-fact for the purpose of carrying out
the provisions of this Agreement and taking any action and executing any instrument which Lender
may reasonably deem necessary or advisable to accomplish the purposes hereof, which appointment is
coupled with an interest and is irrevocable. Without limiting the generality of the foregoing,
Lender shall have the power to arrange for the transfer, upon the occurrence and during the
continuation of an Event of Default, of any of the Pledged Collateral on the books of the Company
to the name of Lender or Lender’s nominee. Pledgor agrees to indemnify and save Lender harmless
from and against any liability or damage which Lender may suffer or incur, in the exercise or
performance of any of Lender’s powers and duties specifically set forth herein.

     26. Use of Loan Proceeds. Pledgor hereby represents and warrants to Lender that none
of the loan proceeds heretofore and hereafter received by it under the Loan Agreement are for the
purpose of purchasing any “margin security” as that term is defined in either Regulation U
promulgated by the Board of Governors of the Federal Reserve System, or refinancing any
indebtedness originally incurred to purchase any such “margin security.”

     27. Waiver of Subrogation and Other Claims. Pledgor recognizes that Lender, in
exercising its rights and remedies with respect to the Pledged Collateral, may likely be unable to
find one or more purchasers thereof if, after the sale of the Pledged Collateral, the Company were,
because of any claim based on subrogation or any other theory, liable to Pledgor on account of the
sale by Lender of the Pledged Collateral in full or partial satisfaction of the Secured Obligations
or liable to Pledgor on account of any indebtedness owing to Pledgor that is subordinated to any or
all of the Secured Obligations. Pledgor hereby agrees, therefore, that if Lender sells any of the
Pledged Collateral in full or partial satisfaction of the Secured Obligations, Pledgor shall in
such case have no right or claim against the Company on account of any such subordinated
indebtedness or on the theory that Pledgor has become subrogated to any claim or right of Lender
against the Company or on any basis whatsoever, and Pledgor hereby expressly waives and
relinquishes all such rights and claims against the Company.

     28. WAIVERS. PLEDGOR HEREBY WAIVES: NOTICE OF LENDER’S ACCEPTANCE OF THIS AGREEMENT;
NOTICE OF EXTENSIONS OF CREDIT, LOANS, ADVANCES OR OTHER FINANCIAL ASSISTANCE BY LENDER; TO THE
FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY

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(WHICH LENDER ALSO WAIVES) IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM CONCERNING THIS
AGREEMENT OR ANY OF THE PLEDGED COLLATERAL; PRESENTMENT AND DEMAND FOR PAYMENT OF ANY OF THE
SECURED OBLIGATIONS; PROTEST AND NOTICE OF DISHONOR OR DEFAULT WITH RESPECT TO ANY OF THE SECURED
OBLIGATIONS; AND ALL OTHER NOTICES TO WHICH PLEDGOR MIGHT OTHERWISE BE ENTITLED EXCEPT AS HEREIN
OTHERWISE EXPRESSLY PROVIDED.

[Signatures on following page]

-9-

 

     IN WITNESS WHEREOF, Pledgor has signed, sealed and delivered this Agreement as of the day and
year first above written.

	 	 	 	 	 
	 	PLEDGOR:

ARTESYN NORTH AMERICA, INC.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[CORPORATE SEAL]

Accepted in Atlanta, Georgia:

LENDER:

BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-10-

 

	 	 	 	 	 

EXHIBIT B

PLEDGE AGREEMENT

     This PLEDGE AGREEMENT (this “Agreement”) is made as of February 2, 2006, by and between
ARTESYN COMMUNICATION PRODUCTS, INC., a Wisconsin corporation (“Pledgor”), and BANK OF AMERICA,
N.A., a national banking association (“Lender”).

Recitals:

     Artesyn Technologies, Inc., a Florida corporation, Artesyn North America, Inc., a Delaware
corporation, and Pledgor (collectively, the “Borrowers”), and Lender have entered into that certain
Loan and Security Agreement dated March 28, 2003 (as at any time amended, the “Loan Agreement”),
pursuant to which Lender may from time to time make loans or extend other financial accommodations
to or for the benefit of Borrowers.

     It is a condition to Lender’s willingness to extend further loans and other financial
accommodations to or for the benefit of Borrowers that Pledgor execute and deliver this Agreement.
To induce Lender to extend further loans pursuant to the Loan Agreement, Pledgor has agreed to
grant a continuing security interest in and to the Pledged Collateral (as hereinafter defined) as
security for the timely payment and performance of the Secured Obligations.

     NOW, THEREFORE, for Ten Dollars ($10.00) in hand paid to Pledgor and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and to secure the
timely payment and performance of the Secured Obligations (as hereinafter defined), Pledgor agrees
as follows:

     1. Definitions. Capitalized terms used herein, unless otherwise defined, shall have
the meaning ascribed to them in the Loan Agreement. As used herein, the following terms shall have
the following meanings:

     “Company” shall mean Artesyn Communication Products Scandinavia AB, a Swedish
company.

     “Pledged Collateral” shall have the meaning ascribed to in Section 2 hereof.

     “Power” shall have the meaning ascribed to it in Section 2 hereof.

     “Secured Obligations” shall mean all of the Obligations under (and as defined
in) the Loan Agreement and all obligations of Pledgor now or hereafter existing under the
Loan Agreement or this Agreement.

     2. Pledge; Lender’s Duties.

          (a) Pledgor hereby pledges, assigns, transfers, sets over and delivers to Lender, and hereby
grants to Lender, a security interest in sixty-five percent (65%) of the Equity Interests of the
Company, accompanied by stock powers (“Powers”) duly executed in blank, with

 

 

signatures properly guaranteed, and all proceeds thereof and all dividends at anytime payable
in connection therewith (said Equity Interests, Powers, proceeds and dividends hereinafter
collectively called the “Pledged Collateral”) as security for the due and punctual payment and
performance of the Secured Obligations. With respect to the Company and notwithstanding anything
to the contrary set forth in this Agreement, the Pledged Collateral shall not exceed sixty-five
percent (65%) of the total Equity Interests of the Company.

          (b) Lender shall have no duty with respect to any of the Pledged Collateral other than the
duty to use reasonable care in the safe custody of any tangible items of the Pledged Collateral in
its possession. Without limiting the generality of the foregoing, Lender shall be under no
obligation to sell any of the Pledged Collateral or otherwise to take any steps necessary to
preserve the value of any of the Pledged Collateral or to preserve rights in the Pledged Collateral
against any other Persons, but may do so at its option, and all expenses incurred in connection
therewith shall be for the sole account of Pledgor.

     3. Voting Rights. During the term of this Agreement, and so long as no Event of
Default shall exist, Pledgor shall have the right to vote all or any portion of the pledged Equity
Interests on all corporate questions for all purposes not inconsistent with the terms of this
Agreement or any of the other Loan Documents. To that end, if Lender transfers all or any portion
of the Pledged Collateral, into its name or the name of its nominee, to the extent authorized to do
so under this Agreement or any of the other Loan Documents, Lender shall, upon the request of
Pledgor, unless an Event of Default shall have occurred, execute and deliver or cause to be
executed and delivered to Pledgor, proxies with respect to the Pledged Collateral. Pledgor hereby
grants to Lender, effective upon the occurrence and during the continuation of any Event of
Default, an IRREVOCABLE PROXY pursuant to which Lender shall be entitled to exercise all voting
powers pertaining to the Pledged Collateral, including to call and attend all meetings of the
shareholders of the Company to be held from time to time with full power to act and vote in the
name, place and stead of Pledgor (whether or not the Equity Interests shall have been transferred
into its name or the name of its nominee or nominees), give all consents, waivers and ratifications
in respect of the Pledged Collateral and otherwise act with respect thereto as though it were the
outright owner thereof, and any and all proxies theretofore executed by Lender shall terminate and
thereafter be null and void and of no effect whatsoever.

     4. Collection of Dividend Payments. During the term of this Agreement, and so long as
there shall not occur or exist any Event of Default, Pledgor shall have the right to receive and
retain any and all dividends payable by the Company on account of any of the Pledged Collateral
except as otherwise provided in the Loan Documents. Upon the occurrence and during the
continuation of any Event of Default, all dividends payable by the Company on account of any of the
Pledged Collateral shall be paid to Lender and any such sum received by Pledgor shall be deemed to
be held by Pledgor in trust for the benefit of Lender and shall be forthwith turned over to Lender
for application by Lender to the Secured Obligations in such order of application as is specified
in the Loan Agreement.

     5. Representations and Warranties of Pledgor. Pledgor warrants and represents to
Lender as follows (which representations and warranties shall be deemed continuing): (a) Pledgor
is the legal and beneficial owner of the Pledged Collateral; (b) all of the shares of the

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Equity Interests have been duly and validly issued, are fully paid and nonassessable, and are owned
by Pledgor free of any Liens except for Permitted Liens and Lender’s security interest hereunder;
(c) the Equity Interests constitutes sixty-five percent (65%) of the issued and outstanding capital
stock of the Company; (d) there are no contractual or charter restrictions upon the voting rights
or upon the transfer of any of the Pledged Collateral; (e) Pledgor has the right to vote, pledge
and grant a security interest in or otherwise transfer the Pledged Collateral without the consent
of any other party and free of any Liens other than Permitted Liens and applicable restrictions
imposed by any Governmental Body and without any restriction under the by-laws or charter of
Pledgor or the Company or any agreement among Pledgor’s or the Company’s shareholders; (f) this
Agreement has been duly authorized, executed and delivered by Pledgor and constitutes a legal,
valid and binding obligation of Pledgor, enforceable in accordance with its terms except to the
extent that the enforceability thereof may be limited by bankruptcy, insolvency or other similar
laws of general application affecting the enforcement of creditors’ rights; (g) the execution,
delivery and performance by Pledgor of this Agreement and the exercise by Lender of its rights and
remedies hereunder do not and will not result in the violation of the by-laws or charter of
Pledgor, any agreement, indenture, instrument or Applicable Law by which Pledgor or the Company is
bound or to which Pledgor or the Company is subject (except Pledgor makes no representation or
warranty about Lender’s prospective compliance with any federal or state laws or regulations
governing the sale or exchange of securities); and (h) no consent, filing, approval, registration
or recording is required (x) for the pledge by Pledgor of the Pledged Collateral pursuant to this
Agreement or (y) to perfect the Lien created by this Agreement.

     6. Affirmative Covenants of Pledgor. Until all of the Secured Obligations have been
satisfied in full and the Loan Agreement has been terminated, Pledgor covenants that it will: (a)
warrant and defend at its own expense Lender’s right, title, and security interest in and to the
Pledged Collateral against the claims of any Person; (b) promptly deliver to Lender all written
notices with respect to the Pledged Collateral, and will promptly give written notice to Lender of
any other notices received by Pledgor with respect to the Pledged Collateral; and (c) deliver to
Lender promptly to hold under this Agreement any shares of the capital stock of the Company
subsequently acquired by Pledgor, whether acquired by Pledgor by virtue of the exercise of any
stock options included within the Pledged Collateral or otherwise, provided,
however, that Pledgor will not pledge or deliver any such shares of the Company which would
cause the Pledged Collateral to exceed sixty-five percent (65%) of the total Equity Interests of
the Company.

     7. Negative Covenants of Pledgor. Until all of the Secured Obligations have been
satisfied in full and the Loan Agreement has been terminated, Pledgor covenants that it will not,
without the prior written consent of Lender, (a) sell, convey or otherwise dispose of any of the
Pledged Collateral or any interest therein; (b) incur or permit to be incurred any Lien whatsoever
upon or with respect to any of the Pledged Collateral or the proceeds thereof, other than the
security interest created hereby and Permitted Liens; (c) consent to the issuance by the Company
of any new stock; and (d) consent to any merger or other consolidation of the Company with or into
any corporation or other entity other than as permitted under the Loan Agreement.

-3-

 

     8. Subsequent Changes Affecting Pledged Collateral. Pledgor represents to Lender that
Pledgor has made its own arrangements for keeping informed of changes or potential changes
affecting the Pledged Collateral (including rights to convert, rights to subscribe, payment of
dividends, reorganization or other exchanges, tender offers and voting rights), and Pledgor agrees
that Lender shall have no responsibility or liability for informing Pledgor of any such changes or
potential changes or for taking any action or omitting to take any action with respect thereto.

     9. Equity Interests Adjustments. If during the term of this Agreement any stock
dividend, reclassification, readjustment or other change is declared or made in the capital
structure of the Company, all new, substituted and additional shares, or other securities, issued
by reason of any such change or exercise shall, if received by Pledgor, be held in trust for
Lender’s benefit and shall be promptly delivered to and held by Lender under the terms of this
Agreement in the same manner as the Pledged Collateral originally pledged hereunder,
provided, however, that to the extent any such shares would cause the Pledged
Collateral to exceed sixty-five percent (65%) of the total Equity Interests of the Company, Pledgor
shall neither hold such shares for Lender’s benefit nor deliver such shares to Lender as Pledged
Collateral.

     10. Warrants, Options and Rights. If during the term of this Agreement subscription
warrants or any other rights or options shall be issued or exercised in connection with the Pledged
Collateral, then such warrants, rights and options shall be immediately assigned by Pledgor to
Lender and all certificates evidencing new stock or other securities so acquired by Pledgor shall
be immediately delivered to and held by Lender to be held under the terms of this Agreement in the
same manner as the Pledged Collateral originally pledged hereunder.

     11. Registration. If Lender determines that it is required to register under or
otherwise comply in any way with the Securities Act of 1933, as amended (the “Securities Act”) or
any similar federal or state law, with respect to the securities included in the Pledged Collateral
prior to sale thereof by Lender, then upon the occurrence and during the continuation of an Event
of Default, Pledgor will use its best efforts to cause any such registration to be effectively
made, at no expense to Lender, and to continue such registration effective for such time as may be
reasonably necessary in the reasonable opinion of Lender, and will reimburse Lender for any expense
incurred by Lender, including reasonable attorneys’ fees and accountants’ fees and expenses, in
connection therewith.

     12. Consent. Pledgor hereby consents that from time to time, before or after the
occurrence or existence of any Default or Event of Default, with or without notice to or assent
from Pledgor, any other security at any time held by or available to Lender for any of the Secured
Obligations may be exchanged, surrendered, or released, and any of the Secured Obligations may be
changed, altered, renewed, extended, continued, surrendered, compromised, waived or released, in
whole or in part, as Lender may see fit, and Pledgor shall remain bound under this Agreement and
under the other Loan Documents notwithstanding any such exchange, surrender, release, alteration,
renewal, extension, continuance, compromise, waiver or inaction, extension of further credit or
other dealing.

-4-

 

     13. Remedies Upon Default. Upon the occurrence and during the continuation of any
Event of Default, (i) Lender shall have, in addition to any other rights given by law or the rights
given hereunder or under each of the other Loan Documents, all of the rights and remedies with
respect to the Pledged Collateral of a secured party under the UCC and (ii) Lender may cause all or
any part of the Equity Interests held by it to be transferred into its name or the name of its
nominee or nominees. In addition, upon the occurrence and during the continuation of an Event of
Default, Lender may sell or cause the Pledged Collateral, or any part thereof, which shall then be
or shall thereafter come into Lender’s possession or custody, to be sold at any broker’s board or
at public or private sale, in one or more sales or lots, at such price as Lender may deem best, and
for cash or on credit or for future delivery, and the purchaser of any or all of the Pledged
Collateral so sold shall thereafter hold the same absolutely, free from any claim, encumbrance or
right of any kind whatsoever or Pledgor or arising through Pledgor. If any of the Pledged
Collateral is sold by Lender upon credit or for future delivery, Lender shall not be liable for the
failure of the purchaser to pay the same and in such event Lender may resell such Pledged
Collateral. Unless the Pledged Collateral threatens to decline speedily in value or is or becomes
of a type sold on a recognized market, Lender will give Pledgor reasonable notice of the time and
place of any public sale thereof, or of the time after which any private sale or other intended
disposition is to be made. Any sale of the Pledged Collateral conducted in conformity with
reasonable commercial practices of banks, insurance companies or other financial institutions
disposing of property similar to the Pledged Collateral shall be deemed to be commercially
reasonable. Any requirements of reasonable notice shall be met if such notice is mailed to
Pledgor, as provided in Section 21 below, at least ten (10) days before the time of the sale or
disposition. Any other requirement of notice, demand or advertisement for sale is, to the extent
permitted by Applicable Law, waived. Lender may, in its own name, or in the name of a designee or
nominee, buy at any public sale of the Pledged Collateral and, if permitted by Applicable Law, buy
at any private sale thereof. Pledgor will pay to Lender on demand all expenses (including court
costs and reasonable attorneys’ fees and expenses) of, or incident to, the enforcement of any of
the provisions hereof and all other charges due against the Pledged Collateral, including taxes,
assessments or Liens upon the Pledged Collateral and any expenses, including transfer or other
taxes, arising in connection with any sale, transfer or other disposition of Pledged Collateral.
In connection with any sale of Pledged Collateral by Lender, Lender shall have the right to execute
any document or form, in its name or in the name of Pledgor, which may be necessary or desirable in
connection with such sale, including Form 144 promulgated by the Securities and Exchange
Commission. In view of the fact that federal and state securities laws may impose certain
restrictions on the method by which a sale of the Pledged Collateral may be effected Pledgor agrees
that Lender may, upon the occurrence and during the continuation of an Event of Default, attempt to
sell all or any part of the Pledged Collateral by means of a private placement restricting the
bidders and prospective purchasers to those who will represent and agree that they are accredited
investors (as defined in Regulation D promulgated under the Securities Act) purchasing for
investment only and not for distribution. Pledgor agrees that any such private sales may be at
prices and other terms less favorable to the seller than if sold at public sales and that such
private sales shall not by reason thereof be deemed not to have been made in a commercially
reasonable manner. Lender shall be under no obligation to delay a sale of any of the Pledged
Collateral for the period of time necessary to permit the issuer of such securities to register
such securities for public sale under the Securities Act even if the issuer

-5-

 

would agree to do so. Lender shall apply the cash proceeds actually received from any sale or
other disposition to the reasonable expenses of retaking, holding, preparing for sale, selling and
the like, to reasonable attorneys’ fees, and all legal expenses, travel and other expenses which
may be incurred by Lender in attempting to collect the Secured Obligations or to enforce this
Agreement or in the prosecution or defense of any action or proceeding related to the subject
matter of this Agreement; and then to the Secured Obligations in the manner authorized by the Loan
Agreement.

     14. Redemption; Marshaling. Pledgor hereby waives and releases to the fullest extent
permitted by Applicable Law any right of equity of redemption with respect to the Pledged
Collateral before or after a sale conducted pursuant to Section 13 hereof. Pledgor agrees that
Lender shall not be required to marshal any present or future security (including this Agreement
and the Pledged Collateral pledged hereunder) for, or guaranties of, the Secured Obligations or any
of them, or to resort to such security or guaranties in any particular order; and all of Lender’s
rights hereunder and in respect of such security and guaranties shall be cumulative and in addition
to all other rights, however existing or arising. To the fullest extent that it lawfully may,
Pledgor hereby agrees that it will not invoke any law relating to the marshaling of collateral
which might cause delay in or impede the enforcement of Lender’s rights under this Agreement or
under any other instrument evidencing any of the Secured Obligations or under which any of the
Secured Obligations is outstanding or by which any of the Secured Obligations is secured or
guaranteed, and to the fullest extent that it lawfully may, Pledgor hereby irrevocably waives the
benefits of all such laws.

     15. Term. This Agreement shall become effective only when accepted by Lender and,
when so accepted, shall constitute a continuing agreement and shall remain in full force and effect
until the Loan Agreement is terminated and all of the Secured Obligations have been fully and
finally paid, satisfied and discharged, at which time this Agreement shall terminate and Lender
shall deliver to Pledgor, at Pledgor’s expense, (i) such of the Pledged Collateral as shall not
have been sold or otherwise applied pursuant to this Agreement and (ii) such termination statements
and other release documents as may be requested by Pledgor to evidence the termination of Lender’s
security interest in the Pledged Collateral. Notwithstanding the foregoing, in no event shall any
termination of this Agreement terminate any indemnity set forth in this Agreement or any of the
other Loan Documents, all of which indemnities shall survive any termination of this Agreement or
any of other Loan Documents in accordance with their respective terms.

     16. Rules and Construction. The singular shall include the plural and vice versa, and
any gender shall include any other gender as the text shall indicate. All references to
“including” shall mean “including, without limitation.” Whenever in this Agreement the word
“stock” or “capital stock” or other similar word or phrase is used in connection with a Person
referring to equity ownership interests in such Person, such word or phrase shall also be deemed to
include a reference to membership interests, each reference to a “corporation” shall also be deemed
to include a reference to a limited liability company, each reference to “shareholders” of a Person
shall also be deemed to include a reference to members and each reference to “certificate of
incorporation” or “articles of incorporation” or “bylaws” shall also be deemed to
include a reference to “certificate of formation” and “operating agreement” or other constituent
documents of a limited liability company.

-6-

 

     17. Successors and Assigns. This Agreement shall be binding upon Pledgor and its
successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

     18. Construction and Applicable Law. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under Applicable Law,
but, if any provision of this Agreement shall be held to be prohibited or invalid under any
Applicable Law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Agreement. This Agreement shall be governed by and construed in accordance with the laws of
the State of New York (without giving effect to the conflict of laws principles thereof other than
Section 5-1401 of the New York General Obligations Law).

     19. Cooperation and Further Assurances. Pledgor agrees that it will cooperate with
Lender and will, upon Lender’s request, execute and deliver, or cause to be executed and delivered,
all such other stock powers, instruments, financing statements, certificates, legal opinions and
other documents, and will take all such other action as Lender may request from time to time, in
order to carry out the provisions and purposes hereof, including delivering to Lender, if requested
by Lender, irrevocable proxies with respect to the Equity Interests in form satisfactory to Lender.
Until receipt thereof, this Agreement shall constitute Pledgor’s proxy to Lender or its nominee to
vote all shares of the Equity Interests then registered in Pledgor’s name (subject to Pledgor’s
voting rights under Section 3 hereof).

     20. Lender’s Exoneration. Under no circumstances shall Lender be deemed to assume any
responsibility for or obligation or duty with respect to any part or all of the Pledged Collateral
of any nature or kind, other than the physical custody thereof, or any matter or proceedings
arising out of or relating thereto. Lender shall not be required to take any action of any kind to
collect, preserve or protect its or Pledgor’s rights in the Pledged Collateral or against other
parties thereto. Lender’s prior recourse to any part or all of the Pledged Collateral shall not
constitute a condition of any demand, suit or proceeding for payment or collection of the Secured
Obligations.

     21. Notices. All notices, requests and demand to or upon either party hereto shall be
given in the manner and become effective as stipulated in the Loan Agreement.

     22. Pledgor’s Obligations Not Affected. The obligations of Pledgor hereunder shall
remain in full force and effect without regard to, and shall not be impaired by (a) any bankruptcy,
insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of
Pledgor; (b) any exercise or nonexercise, or any waiver, by Lender of any right, remedy, power or
privilege under or in respect of any of the Secured Obligations or any security thereof (including
this Agreement); (c) any amendment to or modification of the Loan Agreement, the other Loan
Documents or any of the Secured Obligations; (d) any amendment to or modification of any instrument
(other than this Agreement) securing any of the Secured Obligations; or (e) the taking of
additional security for, or any guaranty of, any of the Secured
Obligations or the release or discharge or termination of any security or guaranty for any of the
Secured Obligations, whether or not Pledgor shall have notice or knowledge of any of the foregoing.

-7-

 

     23. No Waiver, Etc. No act, failure or delay by Lender shall constitute a waiver of
any of its rights and remedies hereunder or otherwise. No single or partial waiver by Lender of
any Default or Event of Default or right or remedy which Lender may have shall operate as a waiver
of any other Default, Event of Default, right or remedy or of the same Default, Event of Default,
right or remedy on a future occasion. Pledgor hereby waives presentment, notice of dishonor and
protest of all instruments included in or evidencing any of the Secured Obligations or the Pledged
Collateral, and any and all other notices and demands whatsoever (except as expressly provided
herein).

     24. Section Headings. The section headings herein are for convenience of reference
only, and shall not affect in any way the interpretation of any of the provisions hereof.

     25. Lender Appointed Attorney-In-Fact. Pledgor hereby constitutes and appoints
Lender, with full power of substitution, Pledgor’s attorney-in-fact for the purpose of carrying out
the provisions of this Agreement and taking any action and executing any instrument which Lender
may reasonably deem necessary or advisable to accomplish the purposes hereof, which appointment is
coupled with an interest and is irrevocable. Without limiting the generality of the foregoing,
Lender shall have the power to arrange for the transfer, upon the occurrence and during the
continuation of an Event of Default, of any of the Pledged Collateral on the books of the Company
to the name of Lender or Lender’s nominee. Pledgor agrees to indemnify and save Lender harmless
from and against any liability or damage which Lender may suffer or incur, in the exercise or
performance of any of Lender’s powers and duties specifically set forth herein.

     26. Use of Loan Proceeds. Pledgor hereby represents and warrants to Lender that none
of the loan proceeds heretofore and hereafter received by it under the Loan Agreement are for the
purpose of purchasing any “margin security” as that term is defined in either Regulation U
promulgated by the Board of Governors of the Federal Reserve System, or refinancing any
indebtedness originally incurred to purchase any such “margin security.”

     27. Waiver of Subrogation and Other Claims. Pledgor recognizes that Lender, in
exercising its rights and remedies with respect to the Pledged Collateral, may likely be unable to
find one or more purchasers thereof if, after the sale of the Pledged Collateral, the Company were,
because of any claim based on subrogation or any other theory, liable to Pledgor on account of the
sale by Lender of the Pledged Collateral in full or partial satisfaction of the Secured Obligations
or liable to Pledgor on account of any indebtedness owing to Pledgor that is subordinated to any or
all of the Secured Obligations. Pledgor hereby agrees, therefore, that if Lender sells any of the
Pledged Collateral in full or partial satisfaction of the Secured Obligations, Pledgor shall in
such case have no right or claim against the Company on account of any such subordinated
indebtedness or on the theory that Pledgor has become subrogated to any claim or right of Lender
against the Company or on any basis whatsoever, and Pledgor hereby expressly waives and
relinquishes all such rights and claims against the Company.

-8-

 

     28. WAIVERS. PLEDGOR HEREBY WAIVES: NOTICE OF LENDER’S ACCEPTANCE OF THIS AGREEMENT;
NOTICE OF EXTENSIONS OF CREDIT, LOANS, ADVANCES OR OTHER FINANCIAL ASSISTANCE BY LENDER; TO THE
FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY (WHICH LENDER ALSO WAIVES) IN ANY
ACTION, SUIT, PROCEEDING OR COUNTERCLAIM CONCERNING THIS AGREEMENT OR ANY OF THE PLEDGED
COLLATERAL; PRESENTMENT AND DEMAND FOR PAYMENT OF ANY OF THE SECURED OBLIGATIONS; PROTEST AND
NOTICE OF DISHONOR OR DEFAULT WITH RESPECT TO ANY OF THE SECURED OBLIGATIONS; AND ALL OTHER NOTICES
TO WHICH PLEDGOR MIGHT OTHERWISE BE ENTITLED EXCEPT AS HEREIN OTHERWISE EXPRESSLY PROVIDED.

[Signatures on following page]

-9-

 

     IN WITNESS WHEREOF, Pledgor has signed, sealed and delivered this Agreement as of the day and
year first above written.

	 	 	 	 	 
	 	PLEDGOR:

ARTESYN COMMUNICATION PRODUCTS,

INC.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[CORPORATE SEAL]

Accepted in Atlanta, Georgia:

LENDER:

BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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EXHIBIT C

IRREVOCABLE STOCK POWER AND ASSIGNMENT

     FOR
VALUE RECEIVED, _____________________________________ (“Transferor”) does hereby bargain, sell, assign and
transfer unto _________________________ (”Transferee”) _____________
(_________)
shares of the capital stock of ________________________ (“Company”) standing in its name on the
books of the Company and represented by Certificate No. _____________, and Transferor does hereby
irrevocably constitute and appoint Transferee and its successors and assigns as its true and lawful
attorney, for it and in its name and stead, to transfer said stock on the books of the Company with
full power of substitution in the premises. Transferor irrevocably authorizes Transferee to fill
in the date below by inserting the date of this transfer.

     This ___day of _________, 20___.

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[CORPORATE SEAL]

Signed, sealed and delivered

in the presence of:

	 	 	 	 	 
	 	____________________________________

Witness

Name: _______________________________

Address: _____________________________

____________________________________

 	 
	 	 	 
	 	 	 
	 	 	 
	 

-11-2006 Executive Incentive Plan

 

Exhibit 10.24

Executive Incentive Plan (2006)

 

I. Purpose

Artesyn Technologies (“Company”) establishes the Executive Incentive Plan (“Plan”) to provide a
financial incentive for selected members of management. This Plan is designed to achieve several
objectives to include:

	 	‹ 	 	Linking Company business objectives with key executives’ compensation;
	 
	 	‹ 	 	Rewarding teamwork and individual performance for achieving annual business results;
	 
	 	‹ 	 	Providing motivation to key executives to excel by offering competitive
incentive and total cash compensation;
	 
	 	‹ 	 	Promoting human resources goals to attract, hire and retain quality talent; and,
	 
	 	‹ 	 	Balancing short and long-term considerations through compensation for
achievement of twelve-month goals that are consistent with long-term objectives.

II. Effective Date

The Plan shall be effective on the first day of the fiscal year and will remain effective until
amended or terminated by the Board of Directors.

III. Plan Year

The Plan Year shall be the Company’s fiscal year. The Plan automatically shall be renewed for each
fiscal year thereafter, unless otherwise amended or terminated by the Board of Directors.

IV. Plan Administration

The Plan shall be administered by the Chief Executive Officer (Plan Administrator). The
Compensation Committee of the Board will approve annually the performance measures, objectives,
award levels and funding amounts for the Corporate and Division heads.

The Chief Executive Officer/Plan Administrator, with support from the executive staff, determines
eligibility, approves actual awards, and recommends Corporate and Division Head performance
measures/weights, objectives, award levels and funding amounts. The Chief Executive Officer is
authorized to interpret and administer Plan provisions. The Chief Executive Officer as Plan
Administrator shall have no authority to amend or modify any of the terms of the Plan, such
authority being fully reserved to the Compensation Committee for the Board of Directors, subject to
the terms hereof.

V. Eligibility

The Chief Executive Officer shall select those key executives (“Participants”) who will be eligible
to receive an annual incentive award for the Plan Year. In determining eligibility, the Chief
Executive Officer shall consider the executive’s potential impact on profitability, revenue growth
and operating results, as well as reporting level of the executive.

 

 

To be eligible to be selected as a Participant, the executive must:

	 	v	 	report directly to a Division President and/or be within two reporting levels of the
Chief Executive Officer; or must be an approved exception by the Chief Executive
Officer; and,
	 
	 	v	 	be an active employee at the end of the Plan Year and at the time payments are made,
unless specified differently in other contractual agreements or as noted in Section IX.

Participants shall receive a copy of the Plan to serve as written notice from the Plan
Administrator of their eligibility to participate in the Plan and their contingent rights to an
annual incentive award.

VI. Company Performance Objectives

Threshold:

The minimum level at which payment of an objective/performance measure will begin.

Target:

The expected performance level at which full payment is granted at 100%.

Maximum:

The maximum level for any one objective/performance measure is a payout of 200%.

Performance Measures and Weights:

Annually, the Chief Executive Officer, with support from executive staff, will determine and
recommend the appropriate performance measures and weights. Taking into consideration the annual
business plan, the Chief Executive Officer will develop target and performance objectives.
Performance measures will utilize “formulas” or objective measures as much as possible; however,
discretion may be required particularly in developing individual objectives. The Compensation
Committee annually approves the performance measures for Corporate and Division heads.

Upon approval by the Compensation Committee, performance objectives/weights will be communicated in
writing to all Plan Participants.

VII. Incentive Awards

Limitations

Annual plans may include total payment limitations as determined by the Compensation Committee of
the Board of Directors. For example, payment may not exceed a certain percentage of Artesyn’s
consolidated net income.

The Compensation Committee shall have discretion to interpret the effect of “windfall” events on
the Plan. Examples of “windfall” events include income/(loss) from the sale of an asset,
discontinued operations, effect of changes in accounting principles, extraordinary credits, etc.

Award Level

The award level shall be based on the level of financial performance attained with a minimum payout
at the threshold and a maximum payout at 200%.

2

 

VIII. Individual Annual Incentive Awards

As determined by the Chief Executive Officer/Plan Administrator, the annual incentive award for a
Participant shall be based on the individual Participant’s group level and achievement of mutually
agreed to goals, which shall be set forth in writing for the Participant.

Payment

All awards shall be expressed as a percent of Base Salary (as defined in Section XI of the Plan)
and payable in cash or special contribution to a pension plan or other deferred vehicle in
accordance with applicable Plan documents and tax laws. Payment terms and timing of any payments is
solely at the discretion of the Compensation Committee; provided, however, that all award payments
shall be made no later than thirty (30) days following the end of the Plan Year and, with respect
to any payment due upon termination of a Participant’s employment under Section IX, such payment
shall be made in a lump sum within ten (10) days following such termination. Awards shall be
subject to normal rules and regulations regarding the withholding of taxes.

IX. Minimum Payments and Payments on Termination of Employment

Notwithstanding any provision of the Plan to the contrary, any Participant who remains employed
with the Company (including any subsidiary) through the end of the Plan Year will receive at least
a full award at Target (as defined in Section VI of the Plan).

In the event of the death, Disability (as defined in Section XI of the Plan), Retirement (as
defined in Section XI of the Plan) or voluntary termination of a Participant, the Participant will
be entitled to receive a prorated award at Target (as defined in Section VI of the Plan) based upon
the number of days in which the Participant participated in the Plan for the applicable Plan Year;
provided, however, that any award payable pursuant to this paragraph to a Participant shall be
reduced by the amount of bonus payments otherwise payable to such Participant under such
circumstances pursuant to any severance plan or employment agreement between the Company and such
Participant.

In the event of involuntary termination by the Company of a Participant due to a work force
reduction or otherwise without Cause (as defined in Section XI of the Plan) during the current Plan
Year, the Participant will receive a full (12 months) award at Target (as defined in Section VI of
the Plan); provided, however, that any award payable pursuant to this paragraph to a Participant
shall be reduced by the amount of bonus payments otherwise payable to such Participant under such
circumstances pursuant to any severance plan or employment agreement between the Company and such
Participant.

In the event of Termination for Cause, the Participant will not be entitled to any award, whether
prorated or not, for the Plan Year or any unpaid award from the prior Plan Year.

X. Miscellaneous

Payment from General Assets

The payment of any award under the Plan shall be from the general assets of the Company, and a
Participant under the Plan shall have no greater rights to payment than other general creditors of
the Company. There shall be no separate trust for the payment of awards hereunder.

No Right of Employment

Nothing in the Plan, including the employee’s eligibility for participation in the Plan, will infer
any right of employment by the Company to such employee. The Plan does not affect the terms of any
employment agreements that may exist between the Company and any Participant. The Company retains
all its rights to discipline or discharge employees who participate in the Plan.

3

 

Non-Solicit; Non-Compete

During a Participant’s participation in this Plan and for a period of one (1) year following
termination of the Participant’s employment from the Company, the Participant will not directly or
indirectly engage in competition with, or enter the employ of or assist any person, firm,
corporation or other entity engaged in a business competitive with the business of the Company (now
or as it may evolve) or solicit or hire any employees of the Company; provided, however, that, in
the event of any merger, consolidation, reorganization, sale or other similar transaction involving
the Company, the non-compete provisions of this Section shall not apply with respect to any
line-of-business in which the Company or its direct or indirect subsidiaries was not engaged as of
the date immediately preceding the consummation of such transaction. If the Participant disregards
this provision, then the Company has the right to enforce this provision in the courts (including
obtaining injunctive or other appropriate equitable relief) and to demand all payments made under
this Plan to be returned to the Company within 30 days after notification. The restrictions of this
paragraph are in addition to those imposed on the Participant under any other contractual agreement
or other Company policy.

Non-Assignment/Death Benefits

An award or the right to a payment of an award granted under this Plan shall not be assignable or
transferable by a Participant except in the event of death. If an award is granted, it will be
assigned or transferred by will or the laws of descent and distribution. Each Participant should
designate, on a form provided by the Company, a beneficiary or beneficiaries to receive payment of
any Plan death benefits that may be payable with respect to the Participant. During the lifetime
of a Participant, only the Participant may receive payment of an award granted hereunder. No
transfer of an award shall be effective to bind the Company unless the Company shall have been
furnished with written notice thereof and a copy of the will or such evidence as the Company may
deem necessary to establish the validity of the transfer.

Amendment, Suspension, or Termination of the Plan

The Board of Directors, upon recommendation of the Compensation Committee, may at any time elect to
amend, suspend, or terminate the Plan; provided, however, that no amendment, suspension or
termination will adversely affect any Participant’s rights under the Plan without the Participant’s
written consent.

XI. Definitions

For purposes of this document and the Plan, the terms listed below are defined as follows:

Base Salary means a Participant’s regular salary amount in effect at the end of the Plan Year or
upon termination as defined in Section IX and shall not include commissions, bonus, options and/or
any amounts receive in connection with any fringe benefit, retirement, and welfare or employee
benefit program.

Disability refers to a Participant’s incapacity to engage in any substantial gainful activity
because of a medically determinable physical or mental impairment that can be expected to result in
death, or to be of long, continued and indefinite duration. The Plan Administrator, with the advice
of competent medical authority, shall make the determination of disability.

Retirement is the termination of a Participant’s employment and withdrawal from their occupation.

Termination for Cause means termination for actions by a Participant involving dishonesty, fraud,
the commission of a felony, gross negligence, or any willful misconduct which results in material
harm to the business and/or reputation of the Company as reasonably determined by the Company’s
Board of Directors.

4

 

I have read the 2006 Executive Incentive Plan for Artesyn Technologies, of which I have been chosen
as a participant, and I agree to all of the terms and conditions as stated in this Plan document.

 

	 	 	 	 	 
	 

	 	 
	 	 
	Print Name

	 	Signature
	 	Date

5

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