Document:

Exhibit
4.1

 

Stock Purchase Agreement

 

Magnetek, Inc.

10900 Wilshire
Boulevard, Suite 850

Los Angeles,
CA  90024

 

The undersigned
(the “Investor”)
hereby confirms its agreement with you as follows:

 

1.                                      This
Stock Purchase Agreement (which includes the annex and exhibits hereto;
collectively, the “Agreement”) is made as of the date set
forth below among Magnetek, Inc., a Delaware corporation (the “Company”),
and the Investor.

 

2.                                      The
Company has authorized the sale and issuance of up to
                  
shares (the “Shares”) of common stock of the Company, $.01 par value per
share (the “Common Stock”), to certain investors in a private placement
(the “Offering”).

 

3.                                      The
Company and the Investor agree that the Investor will purchase from the Company
and the Company will issue and sell to the Investor
           Shares at a
purchase price of
$                       
per Share, or an aggregate purchase price of
$                       ,
pursuant to the Terms and Conditions for Purchase of Shares attached hereto as
Annex I and incorporated herein by this reference as if fully set forth
herein.  Unless otherwise requested by
the Investor in Exhibit A, certificates representing the Shares purchased by
the Investor will be registered in the Investor’s name and address as set forth
below.

 

4.                                      The
Investor represents (i) that the state of its residence is set forth below in
its address and (ii) that, except as set forth below, (a) it has had no
position, office or other material relationship within the past three years
with the Company or its affiliates, (b) neither it, nor any group of which it
is a member or to which it is related, beneficially owns (including the right
to acquire or vote) any securities of the Company and (c) it has no direct or
indirect affiliation or association with any National Association of Securities
Dealers, Inc. (“NASD”) member. 
Exceptions:

 

 

(If no exceptions,
write “none.”  If left blank, response
will be deemed to be “none.”)

 

Please confirm that the foregoing
correctly sets forth the agreement between us by signing in the space provided
below for that purpose.

 

	
   

  	
  Dated as of: 
                                                ,
  2003

  
	
   

  	
   

  
	
   

  	
  “INVESTOR”

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
  Facsimile:

  	
   

  
	
   

  	
  Telephone:

  	
   

  
	
   

  	
  Email:

  	
   

  
									

 

 

	
  AGREED AND
  ACCEPTED:

  	
   

  
	
  MAGNETEK, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name: 

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
						

 

2

 

Annex I

 

Terms and
Conditions for Purchase of Shares

 

1.                                      Agreement
to Sell and Purchase the Shares; Subscription Date.

 

1.1                               Purchase
and Sale.  At the Closing (as
defined in Section 2), the Company will sell to the Investor, and the Investor
will purchase from the Company, upon the terms and conditions hereinafter set
forth, the number of Shares set forth on the signature page to which these
Terms and Conditions for Purchase of Shares are attached as Annex I (the “Signature
Page”) at the purchase price set forth on such Signature Page.

 

1.2                               Other
Investors.  As part of the Offering,
the Company proposes to enter into this same form of Stock Purchase Agreement
(or a substantially similar form, if entered into with the Placement Agent,
insofar as necessary to accommodate regulatory differences between the
Placement Agent and other Other Investors) with certain other investors (the “Other
Investors”), and the Company expects to complete sales of Shares to
them.  (The Investor and the Other
Investors are hereinafter sometimes collectively referred to as the “Investors,”
and this Agreement and the Stock Purchase Agreements executed by the Other
Investors are hereinafter sometimes collectively referred to as the “Agreements.”)  The Company will accept executed Agreements
from Investors for the purchase of Shares commencing upon the date on which the
Company provides the Investors with the proposed purchase price per Share and
concluding upon the date (the “Subscription Date”) on which the Company
has notified B. Riley & Co. (in its capacity as Placement Agent for the
Shares, the “Placement Agent”) in writing that it is no longer accepting
Agreements for the purchase of Shares in the Offering.

 

1.3                               Placement
Agent Fee.  Investor acknowledges
that the Company intends to pay the Placement Agent a fee in respect of the
sale of Shares to the Investor.

 

2.                                      Delivery
of the Shares at Closing.  The completion
of the purchase and sale of the Shares (the “Closing”) shall occur at a
place and time, no later than October      , 2003 (the
“Closing
Date”), to be specified by the Company and the Placement Agent, and
of which the Investors will be notified in advance by the Placement Agent.  At or within three business days of the
Closing, the Company shall deliver to the Investor one or more stock
certificates representing the number of Shares set forth on the Signature Page,
each such certificate to be registered in the name of the Investor or, if so
indicated on the Stock Certificate Questionnaire attached hereto as Exhibit A,
in the name of a nominee designated by the Investor.  In addition, on or prior to the Closing Date, the Company shall
cause counsel to the Company to deliver to the Investors a legal opinion in the
form attached hereto as Exhibit D.

 

The Company’s obligation to issue and sell the Shares
to the Investor shall be subject to the following conditions, any one or more
of which may be waived by the Company: (a) receipt by the Company of the
purchase price for the Shares being purchased hereunder as set forth on the
Signature Page; (b) completion of purchases and sales under the Agreements with
the Other Investors; (c) the accuracy of the representations and warranties
made by the Investors and the fulfillment of those undertakings of the
Investors to be fulfilled prior to the Closing; (d) the absence of any order,
writ, injunction, judgment or decree that questions the validity of the
Agreements or the right of the Company to enter into such Agreements or to
consummate the transactions contemplated

 

3

 

hereby and thereby; and
(e) the execution and delivery by the Investor of the Registration Rights Agreement
in the form attached hereto as Exhibit C (the “Registration Rights Agreement”).

 

The Investor’s obligation to purchase the Shares shall
be subject to the following conditions, any one or more of which may be waived
by the Investor: (a) the Company’s agreement to issue and sell, and the
Investors’ agreement to purchase, on the Closing Date, not less than
                
(                )
shares of Common Stock; (b) the execution and delivery by the Company of the
Registration Rights Agreement; (c) the delivery to the Investor by counsel to
the Company of a legal opinion in the form attached hereto as Exhibit D; (d)
the representations and warranties of the Company contained in Section 3 being
true and correct on and as of such Closing with the same effect as though such
representations and warranties had been made on and as of the date of such
Closing; (e) the absence of any order, writ, injunction, judgment or decree
that questions the validity of the Agreements or the right of the Company to enter
into such Agreements or to consummate the transactions contemplated hereby and
thereby; and (f) the delivery to the Investor by the Secretary or Assistant
Secretary of the Company of a certificate stating that the condition specified
in part (d) of this paragraph has been fulfilled.

 

3.                                      Representations,
Warranties and Covenants of the Company. 
Except as otherwise described in the Company’s Annual Report on Form
10-K for the year ended June 30, 2003 (and any amendments thereto filed prior
to the date hereof), the Company’s Proxy Statement for its 2003 Annual Meeting
of Stockholders or any of the Company’s Current Reports on Form 8-K filed since
January 1, 2003 (collectively, the “SEC Reports”), the Company hereby
represents and warrants to, and covenants with, the Investor as of the date
hereof and the Closing Date, as follows:

 

3.1                               Organization.  Each of the Company and its Subsidiaries
(as defined in Rule 405 under the Securities Act of 1933, as amended (the “Securities
Act”)) is duly incorporated and validly existing in good standing
under the laws of the jurisdiction of its organization.  Each of the Company and its Subsidiaries has
full power and authority to own, operate and occupy its properties and to
conduct its business as presently conducted and is registered or qualified to
do business and in good standing in each jurisdiction in which it owns or
leases property or transacts business and where the failure to be so qualified
would have a material adverse effect upon the Company and its Subsidiaries
taken as a whole, or the business, financial condition, properties, operations
or assets of the Company and its Subsidiaries, taken as a whole, or the
Company’s ability to perform its obligations under the Agreements (“Material
Adverse Effect”), and no proceeding has been instituted in any such
jurisdiction revoking, limiting or curtailing, or seeking to revoke, limit or
curtail, such power and authority or qualification.

 

3.2                               Due
Authorization.  The Company has all
requisite power and authority to execute, deliver and perform its obligations
under the Agreements, and the Agreements have been duly authorized and validly
executed and delivered by the Company and constitute legal, valid and binding
agreements of the Company enforceable against the Company in accordance with
their terms, except as rights to indemnity and contribution may be limited by
state or federal securities laws or the public policy underlying such laws,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting
parties’ rights generally and except as enforceability may be subject to
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

 

3.3                               Non-Contravention.  The execution and delivery of the
Agreements, the issuance and sale of the Shares to be sold by the Company under
the Agreements, the fulfillment of

 

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the terms of the
Agreements and the consummation of the transactions contemplated thereby will
not conflict with or constitute a violation of, or default (with the passage of
time or otherwise) under (i) any bond, debenture, note or other evidence of
indebtedness, or any lease, contract, indenture, mortgage, deed of trust, loan
agreement, joint venture or other agreement or instrument to which the Company
or any of its Subsidiaries is a party or by which the Company or any of its
Subsidiaries or their respective properties are bound, where such conflict,
violation or default is reasonably expected to result in a Material Adverse
Effect, (ii) the certificate of incorporation, by-laws or other organizational
documents of the Company or any of its Subsidiaries, or (iii) any law,
administrative regulation, ordinance or order of any court or governmental
agency, arbitration panel or authority binding upon the Company or any of its
Subsidiaries or their respective properties, where such conflict, violation or
default is likely to result in (A) a Material Adverse Effect or (B) the
creation or imposition of any lien, encumbrance, claim, security interest or
restriction whatsoever upon any of the material properties or assets of the
Company or any of its Subsidiaries or an acceleration of indebtedness pursuant
to any obligation, agreement or condition contained in any material bond,
debenture, note or any other evidence of indebtedness or any material
indenture, mortgage, deed of trust or any other agreement or instrument to
which the Company or any of its Subsidiaries is a party or by which any of them
is bound or to which any of the property or assets of the Company or any of its
Subsidiaries is subject.  No consent,
approval, authorization or other order of, or registration, qualification or
filing with, any regulatory body, administrative agency, or other governmental
body in the United States is required for the execution and delivery of the
Agreements by the Company and the valid issuance of sale of the Shares by the
Company pursuant to the Agreements, other than such as have been made or
obtained, and except for any filings required to be made under federal or state
securities laws.

 

3.4                               Capitalization.
 As of October 2, 2003, 24,237, 255
shares of Common Stock were issued and outstanding as of such date.  The Company has not issued any capital stock
since December 31, 2002 other than (i) pursuant to the exercise of employee
stock options under the stock option plans and rights under the Company’s
Employee Stock Purchase Plan, or to the Company’s profit sharing retirement
plan as disclosed in the SEC Reports and (ii) in a private placement in which
the Company contributed 535,000 shares of Common Stock to its Pension Plan on
September 15, 2003 (the “Pension Contribution”).  The Shares to be sold pursuant to the Agreements have been duly
authorized, and when issued and paid for in accordance with the terms of the
Agreements, will be duly and validly issued, fully paid and nonassessable.  The outstanding shares of capital stock of
the Company have been duly and validly issued and are fully paid and
nonassessable, have been issued in compliance with the registration
requirements of federal and state securities laws, and were not issued in
violation of any preemptive rights or similar rights to subscribe for or
purchase securities.  Except for (i)
options issued under the Company’s stock option plans and rights under the
Company’s Employee Stock Purchase Plan and (ii) the Preferred Stock Purchase
Rights outstanding (but not currently exerciseable) under the Company’s Rights
Plan, there are no outstanding rights (including, without limitation,
preemptive rights), warrants or options to acquire, or instruments convertible
into or exchangeable for, any unissued shares of capital stock or other equity
interest in the Company or any of its Subsidiaries, or any contract,
commitment, agreement, understanding or arrangement of any kind, in either case
to which the Company or any of its Subsidiaries is a party and providing for
the issuance or sale of any capital stock of the Company or any of its
Subsidiaries, any such convertible or exchangeable securities or any such
rights, warrants or options.  Without
limiting the foregoing, no preemptive right, co-sale right, registration right,
right of first refusal or other similar right exists with respect to the
issuance and sale of the Shares, except as provided in the Agreements.  There are no stockholders agreements, voting
agreements or other similar agreements with respect to the Common Stock to
which the Company is a party.  The
Company, directly or

 

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through a Subsidiary,
owns the entire equity interest in its Subsidiaries, free and clear of any
pledge, lien, security interest, encumbrance, claim or equitable interest.

 

3.5                               Legal
Proceedings.  Except as expressly
disclosed in the Company’s Annual Report on Form 10-K for the year ended June
30, 2003, there is no material legal or governmental proceeding pending, or to
the knowledge of the Company, threatened, to which the Company or any of its
Subsidiaries is a party or of which the business or property of the Company or
any of its Subsidiaries is subject which is reasonably likely to have a
Material Adverse Effect.  Neither the
Company nor any Subsidiary is a party to the provisions of any injunction,
judgment, decree or order of any court, regulatory body, administrative agency
or other government body which is material to the business or operation of the
Company and its Subsidiaries, taken as a whole.

 

3.6                               No
Violations.  Neither the Company nor
any of its Subsidiaries is in violation of its certificate of incorporation,
bylaws or other organizational documents, or in violation of any law,
administrative regulation, ordinance or order of any court or governmental
agency, arbitration panel or authority applicable to the Company or any of its
Subsidiaries, which violation, individually or in the aggregate, is reasonably
likely to have a Material Adverse Effect, nor is the Company or any of its
Subsidiaries in default (and there exists no condition which, with the passage
of time or otherwise, would constitute a default ) in the performance of any
bond, debenture, note or any other evidence of indebtedness or any indenture,
mortgage, deed of trust or any other material agreement or instrument to which
the Company or any of its Subsidiaries is a party or by which the Company or
any of its Subsidiaries is bound or by which the property of the Company or any
of its Subsidiaries is bound, which is reasonably likely to have a Material
Adverse Effect.

 

3.7                               Governmental
Permits, Etc.  Each of the Company
and its Subsidiaries has all necessary franchises, licenses, certificates and
other authorizations from any foreign, federal, state or local government or
governmental agency, department or body that are currently necessary for the
operation of the business of the Company and its Subsidiaries as currently
conducted, except where the failure to currently possess such franchises,
licenses, certificates and other authorizations is not reasonably expected to
have a Material Adverse Effect.

 

3.8                               Intellectual
Property.

 

(a)                                  Except
for matters which are not reasonably likely to have a Material Adverse Effect,
(i) each of the Company and its Subsidiaries has ownership of, or a license or
other legal right to use, all patents, copyrights, trade secrets, trademarks,
customer lists, designs, manufacturing or other processes, computer software,
systems, data compilation, research results or other proprietary rights used in
the business of the Company or its Subsidiaries (collectively, “Intellectual
Property”) and (ii) all of the Intellectual Property owned by the
Company or its Subsidiaries consisting of patents, registered trademarks and
registered copyrights have been duly registered in, filed in or issued by the
United States Patent and Trademark Office, the United States Register of
Copyrights or the corresponding offices of other jurisdictions and have been
maintained and renewed in accordance with all applicable provisions of law and
administrative regulations in the United States and/or such other
jurisdictions.

 

(b)                                  Except
for matters which are not reasonably likely to have a Material Adverse Effect,
all material licenses or other material agreements under which (i) the Company
or any of its Subsidiaries employs rights in Intellectual Property, or (ii) the
Company or any of its Subsidiaries has granted rights to others in Intellectual
Property owned or licensed by the Company

 

6

 

or any of its
Subsidiaries, are in full force and effect and there is no default by the
Company or any of its Subsidiaries thereto.

 

(c)                                  The
Company believes that it has taken all steps required in accordance with sound
business practice and business judgment to establish and preserve the Company’s
ownership of all material Intellectual Property owned by the Company or its
Subsidiaries.

 

(d)                                  Except
for matters which are not reasonably likely to have a Material Adverse Effect,
to the knowledge of the Company; (i) the present business, activities and
products of the Company and its Subsidiaries do not infringe any intellectual
property of any other person; (ii) neither the Company nor any of its
Subsidiaries is making unauthorized use of any confidential information or
trade secrets of any person; and (iii) the activities of any of the employees
on behalf of the Company or any of its Subsidiaries do not violate any
agreements or arrangements related to confidential information or trade secrets
of persons other than the Company or its Subsidiaries or restricting any such
employee’s engagement in business activities of any nature.

 

(e)                                  No
proceedings are pending, or to the knowledge of the Company, threatened, which
challenge the rights of the Company or any of its Subsidiaries in respect of
the Company’s or any of its Subsidiaries’ right to the use of the Intellectual
Property, except for matters which are not reasonably likely to have a Material
Adverse Effect.

 

3.9                               Financial
Statements.

 

(a)                                  The
financial statements of the Company and the related notes contained in the SEC
Reports present fairly and accurately in all material respects the financial
position of the Company as of the dates therein indicated, and the results of
its operations, cash flows and the changes in shareholders’ equity for the
periods therein specified, subject, in the case of unaudited financial
statements for interim periods, to normal year-end audit adjustments.  Such financial statements (including the
related notes) have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis at the times and throughout
the periods therein specified, except that unaudited financial statements may
not contain all footnotes required by generally accepted accounting principles.

 

(b)                                  The
Company has established and maintains disclosure controls and procedures (as
such term is defined in Rule 13a-14 under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)), which (i) are designed to ensure that material
information relating to the Company is made known to the Company’s principal
executive officer and its principal financial officer by others within those
entities, particularly during the periods in which the periodic reports
required under the Exchange Act are being prepared; (ii) provide for the
periodic evaluation of the effectiveness of such disclosure controls and
procedures as of the end of the period covered by the Company’s most recent
annual or quarterly report filed with the Securities and Exchange Commission;
and (iii) are effective in all material respects to perform the functions for
which they were established.

 

(c)                                  Based
on the evaluation of its disclosure controls and procedures, the Company is not
aware of (i) any significant deficiency in the design or operation of internal
controls which could adversely affect the Company’s ability to record, process,
summarize and report financial data or any material weaknesses in internal
controls; or (ii) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Company’s internal
controls.

 

7

 

(d)                                  Since
the date of the most recent evaluation of such disclosure controls and
procedures, there have been no changes that have materially affected, or are
reasonably likely to materially affect, the Company’s internal control over
financial reporting, including any corrective actions with regard to
significant deficiencies and material weaknesses.

 

(e)                                  Except
as described in the SEC Reports, there are no material off-balance sheet
arrangements (as defined in Item 303 of Regulation S-K), or any other
relationships with unconsolidated entities or other persons, that may have a
material current or future effect on the Company’s financial condition,
revenues or expenses, changes in financial condition, results of operations,
liquidity, capital expenditures or capital resources.

 

(f)                                    The
Company’s Board of Directors has validly appointed an audit committee whose
composition satisfies the requirements of Rule 303.01(B)(2) of the New York
Stock Exchange Listed Company Manual (the “NYSE Rules”) and the Board of Directors
and/or the audit committee has adopted a charter that satisfies the
requirements of Rule 303.01(B)(1) of the NYSE Rules. The audit committee has
reviewed the adequacy of its charter within the past twelve months. Neither the
Board of Directors nor the audit committee has been informed, nor is any
director of the Company aware, of (1) any significant deficiencies in the
design or operation of the Company’s internal controls which could adversely
affect the Company’s ability to record, process, summarize and report financial
data or any material weakness in the Company’s internal controls; or (2) any
fraud, whether or not material, that involves management or other employees of
the Company who have a significant role in the Company’s internal controls.

 

3.10                        No
Material Adverse Change.  Since June
30, 2003, there has not been (i) a change that has had or is reasonably likely
to have a Material Adverse Effect, (ii) any obligation, direct or contingent,
that is material to the Company or any of its Subsidiaries considered as one
enterprise, incurred by the Company or any of its Subsidiaries, except obligations
incurred in the ordinary course of business, (iii) any dividend or distribution
of any kind declared, paid or made on the capital stock of the Company or any
of its Subsidiaries, or (iv) any loss or damage (whether or not insured) to the
physical property of the Company or any of its Subsidiaries which has been
sustained which has had a Material Adverse Effect.

 

3.11                        New
York Stock Exchange Compliance.  The
Company’s Common Stock is registered pursuant to Section 12(b) of the Exchange
Act, and is listed on the New York Stock Exchange (the “New York Stock Exchange”),
and the Company has taken no action designed to, or which to its knowledge is
likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act or delisting the Common Stock from the New York Stock
Exchange.  The issuance of the Shares
does not require shareholder approval, including, without limitation, pursuant
to the NYSE Rules.

 

3.12                        Reporting
Status.  The Company has timely made
all filings required under the Exchange Act during the 12 months preceding the
date of this Agreement, and all of those documents complied in all material
respects with the SEC’s requirements as of their respective filing dates, and
the information contained therein as of the respective dates thereof did not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein in
light of the circumstances under which they were made not misleading.  The Company is currently eligible to
register the resale of Common Stock in a secondary offering on a registration
statement on Form S-3 under the Securities Act.

 

8

 

3.13                        No
Manipulation of Stock.  The Company
has not taken and will not, in violation of applicable law, take any action
outside the ordinary course of business designed to or that might reasonably be
expected to cause or result in unlawful manipulation of the price of the Common
Stock to facilitate the sale or resale of the Shares.

 

3.14                        Accountants.

 

(a)                                  Ernst
& Young LLP, who expressed their opinion with respect to the consolidated
financial statements to be incorporated by reference from the Company’s Annual
Report on Form 10-K for the year ended June 30, 2003 into the Registration
Statement (as defined in the Registration Rights Agreement; hereinafter
“Registration Statement”) and the prospectus which forms a part thereof (the
“Prospectus”), have advised the Company that they are, and to the best
knowledge of the Company they are, independent accountants as required by the
Securities Act and the rules and regulations promulgated thereunder (the “Rules
and Regulations”).

 

(b)                                  Except
as described in the SEC Reports and as preapproved in accordance with the
requirements set forth in Section 10A of the Exchange Act, Ernst & Young
LLP has not engaged and as of the date hereof is not engaging in any
“prohibited activities” (as defined in Section 10A of the Exchange Act) on
behalf of the Company.

 

3.15                        Contracts.  Except for matters which are not reasonably
likely to have a Material Adverse Effect, the contracts listed as exhibits to
the SEC Reports that are material to the Company, other than those contracts
that are substantially or fully performed or expired by their terms, are in
full force and effect on the date hereof, and none of the Company, its
Subsidiaries nor, to the Company’s knowledge, any other party to such contracts
is in breach of or default under any of such contracts.

 

3.16                        Taxes.  Except for matters which are not reasonably
expected to have a Material Adverse Effect, the Company has filed all necessary
federal, state and foreign income and franchise tax returns and has paid or
accrued all taxes shown as due thereon, and the Company has no knowledge of a
tax deficiency which has been asserted or threatened against the Company.

 

3.17                        Transfer
Taxes.  On the Closing Date, all
stock transfer or other taxes (other than income taxes) which are required to
be paid in connection with the sale and transfer of the Shares hereunder will
be, or will have been, fully paid or provided for by the Company and the
Company will have complied with all laws imposing such taxes.

 

3.18                        Investment
Company.  The Company is not an
“investment company” or an “affiliated person” of, or “promoter” or “principal
underwriter” for an investment company, within the meaning of the Investment
Company Act of 1940, as amended.

 

3.19                        Insurance.  The Company and its Subsidiaries maintain
insurance of the types and in the amounts that the Company reasonably believes
is adequate for their respective businesses, including, but not limited to,
insurance covering real and personal property owned or leased by the Company
and its Subsidiaries against theft, damage, destruction, acts of vandalism and
all other risks customarily insured against by similarly situated companies,
all of which insurance is in full force and effect.

 

9

 

3.20                        Offering
Materials.  The Company has not in the
past nor will it hereafter take any action to sell, offer for sale or solicit
offers to buy any securities of the Company which would bring the offer or sale
of the Shares as contemplated by this Agreement within the provisions of
Section 5 of the Securities Act.

 

3.21                        Listing.  The Company shall comply with all New York
Stock Exchange requirements with respect to the issuance of the Shares and the
listing thereof on the New York Stock Exchange.

 

3.22                        Related
Party Transactions.  Except as
disclosed in the SEC Reports, no transaction has occurred between or among the
Company, any of the Subsidiaries and their affiliates, officers or directors or
any affiliate or affiliates of any such officer or director that with the
passage of time will be required to be disclosed pursuant to Section 13, 14 or
15(d) of the Exchange Act.

 

3.23                        Books
and Records.  The books, records and
accounts of the Company and the Subsidiaries accurately and fairly reflect, in
reasonable detail, the transactions in, and dispositions of, the assets of, and
the operations of, the Company and the Subsidiaries.  The Company maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles and to
maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

 

4.                                      Representations,
Warranties and Covenants of the Investor.

 

4.1                               Investor
Knowledge and Status.  The Investor
represents and warrants to, and covenants with, the Company that: (i) the
Investor is an “accredited investor” as defined in Regulation D under the
Securities Act and has requested, received, reviewed and considered all
information it deemed relevant in making an informed decision to purchase the
Shares; (ii) the Investor understands that the Shares are “restricted
securities” and have not been registered under the Securities Act and is
acquiring the number of Shares set forth on the Signature Page in the ordinary
course of its business and for its own account for investment only, has no
present intention of distributing any of such Shares and has no arrangement or
understanding with any other persons regarding the distribution of such Shares
(this representation and warranty not limiting the Investor’s right to sell
Shares pursuant to the Registration Statement or otherwise, or other than with
respect to any claim arising out of a breach of this representation and
warranty, the Investor’s right to indemnification under the Registration Rights
Agreement); (iii) the Investor will not, directly or indirectly, offer, sell,
pledge, transfer or otherwise dispose of (or solicit any offers to buy,
purchase or otherwise acquire or take a pledge of) any of the Shares except in
compliance with the Securities Act, applicable state securities laws and the
respective rules and regulations promulgated thereunder; (iv) the Investor has
answered all questions on the Signature Page and the Investor Questionnaire
attached hereto as Exhibit B for use in preparation of the Registration
Statement and the answers thereto are true and correct as of the date hereof
and will be true and correct as of the Closing Date; (v) the Investor will
notify the Company immediately of any change in any of such information until
such time as the Investor has sold all of its Shares or until the Company is no
longer required to keep the Registration Statement effective; and (vi) the
Investor has, in connection with its decision to purchase the number of Shares
set forth on the Signature Page, relied only upon the representations

 

10

 

and warranties of the Company
contained herein.  Investor understands
that the issuance of the Shares to the Investor has not been registered under
the Securities Act, or registered or qualified under any state securities law
in reliance on specific exemptions therefrom, which exemptions may depend upon,
among other things, the bona fide nature of the Investor’s investment intent as
expressed herein.  No person (including
without limitation the Placement Agent) is authorized by the Company to provide
any representation that is inconsistent with or in addition to those contained
herein or in the SEC Reports, and the Investor acknowledges that it has not
received or relied on any such representations.

 

4.2                               International
Actions.  The Investor acknowledges, represents and
agrees that no action has been or will be taken in any jurisdiction outside the
United States by the Company or the Placement Agent that would permit an
offering of the Shares, or possession or distribution of offering materials in
connection with the issue of the Shares, in any jurisdiction outside the United
States.  If the Investor is located
outside the United States, it has or will take all actions necessary for the
sale of the Shares to comply with all applicable laws and regulations in each
foreign jurisdiction in which it purchases, offers, sells or delivers Shares or
has in its possession or distributes any offering material, in all cases at its
own expense.

 

4.3                               Registration
Required.  The Investor hereby covenants with the
Company not to make any sale of the Shares without complying with the
provisions of this Agreement and the Registration Rights Agreement, and without
effectively causing the prospectus delivery requirement under the Securities
Act to be satisfied (unless the Investor is selling such Shares in a
transaction not subject to the prospectus delivery requirement), and the
Investor acknowledges that the certificates evidencing the Shares will be
imprinted with a legend that prohibits their transfer except in accordance
therewith, as more fully described below. 
The Investor acknowledges that as set forth in, and subject to the
provisions of, this Agreement and the Registration Rights Agreement, there may
occasionally be times when the Company, following consultation with its
counsel, determines that it must suspend the use of the Registration Statement
and/or the Prospectus forming a part of the Registration Statement.

 

4.4                               Power
and Authority.  The Investor further represents and warrants
to, and covenants with, the Company that (i) the Investor has full right,
power, authority and capacity to enter into this Agreement and to consummate
the transactions contemplated hereby and has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and (ii)
this Agreement constitutes a valid and binding obligation of the Investor
enforceable against the Investor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting
parties’ rights generally and except as enforceability may be subject to
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and except as the
indemnification agreements of the Investors in the Registration Rights
Agreement may be legally unenforceable.

 

4.5                               Certain
Securities Matters.  Except with the prior written consent of the
Company, the Investor will not, prior to the effectiveness of the Registration
Statement, sell, offer to sell, solicit offers to buy, dispose of, loan, pledge
or grant any right with respect to (collectively, a “Disposition”), the Common
Stock of the Company, nor will Investor engage in any hedging or other
transaction which is designed to or could reasonably be expected to lead to or
result in a Disposition of Common Stock of the Company by the Investor or any
other person or entity.  Such prohibited
hedging or other transactions would include, without limitation, effecting any
short sale or

 

11

 

having in effect any
short position (whether or not such sale or position is against the box and
regardless of when such position was entered into) or any purchase, sale or
grant of any right (including, without limitation, any put or call option) with
respect to the Common Stock of the Company or with respect to any security
(other than a broad-based market basket or index) that includes, relates to or
derives any significant part of its value from the Common Stock of the
Company.  In addition, no Investor shall
sell, transfer or assign any portion of the Securities, unless:

 

(i) there is then
in effect an effective registration statement under the Securities Act covering
such proposed disposition and such disposition is made in accordance with such
registration statement; or

 

(ii) the Investor
has notified the Company in writing of any such sale, transfer or assignment
and furnished the Company with an opinion of counsel, reasonably satisfactory
to the Company, that such disposition will not require registration of such
Securities under the Securities Act; provided, however, that such
opinion of counsel will be unnecessary (A) if the sale, transfer or
assignment is made pursuant to Rule 144 and such Investor provides the
Company with evidence reasonably satisfactory to the Company and its legal
counsel that the proposed transaction satisfies the requirements of Rule 144 or
(B) in connection with a bona fide pledge or hypothecation of any
Securities under a margin arrangement with a broker-dealer or other financial
institution that complies with all applicable federal and state securities
laws.

 

4.6                               (b)                                 Legends.  Each Investor acknowledges and understands
that, until the Securities have been registered, each certificate or other
document evidencing any of the Securities will be endorsed with the following
legend:

 

The
securities represented hereby have not been registered under the Securities Act
of 1933, as amended, or the securities laws of any other jurisdiction.  The securities represented hereby may not be
sold, transferred or assigned in the absence of an effective registration
statement covering the securities under applicable securities laws, or unless
the Company has received an opinion of counsel or other evidence satisfactory
to the Company and its counsel, that such registration is not required.

 

Notwithstanding
the foregoing, to the extent that (1) the resale, transfer or assignment
of any of the Securities is registered pursuant to an effective registration
statement; (2) any of the Securities have been sold pursuant to
Rule 144 under the Securities Act or any successor provision (“Rule 144),
and such Investor provides the Company with customary seller’s and broker’s
representation letters; or (3) the Securities are eligible for resale
under Rule 144(k) or any successor provision, such Securities shall be
issued without any legend or other restrictive language and, with respect to
the Securities upon which such legend is stamped, the Company shall issue new
certificates without such legend to the holder thereof upon request.

 

12

 

4.7                               No
Tax or Legal Advice.  The Investor
understands that nothing in this Agreement, or any other materials presented to
the Investor in connection with the purchase and sale of the Shares constitutes
legal, tax or investment advice.  The
Investor has consulted such legal, tax and investment advisors as it, in its
sole discretion, has deemed necessary or appropriate in connection with its
purchase of Shares

 

4.8                               Acknowledgments
Regarding Placement Agent.  The
Investor acknowledges that the Placement Agent has acted solely as placement
agent for the Company in connection with the Offering of the Shares by the
Company, and that the Placement Agent has made no representation or warranty
whatsoever with respect to the accuracy or completeness of information, data or
other related disclosure material that has been provided to the Investor.  The Investor further acknowledges that in
making its decision to enter into this Agreement and purchase the Shares, it
has relied on its own examination of the Company and the terms of, and
consequences of holding, the Shares. 
The Investor further acknowledges that the provisions of this Section
4.7 are for the benefit of (in addition to the Company), and may be enforced
by, the Placement Agent.

 

5.                                      Survival
of Representations, Warranties and Agreements.  Notwithstanding any
investigation made by any party to this Agreement or by the Placement Agent,
all covenants, agreements, representations and warranties made by the Company
and the Investor herein shall survive the execution of this Agreement, the
delivery to the Investor of the Shares being purchased and the payment
therefor.

 

6.                                      Registration
of the Shares.  The Company and each Investor shall
execute and deliver the Registration Rights Agreement in the form attached
hereto as Exhibit C.

 

7.                                      Public
Statements.  The Company will not
issue any public statement, press release or any other public disclosure
listing Investor as one of the purchasers of the Shares without Investor’s
prior written consent, except as may be required by applicable law, regulation
or rules of any exchange on which the Company’s securities are listed.

 

8.                                      Notices.  All
notices, requests, consents and other communications hereunder shall be in
writing, shall be mailed (A) if within domestic United States by first-class
registered or certified airmail, or nationally recognized overnight express
courier, postage prepaid, or by facsimile, or (B) if delivered from outside the
United States, by International Federal Express (or comparable service) or
facsimile, and shall be deemed given (i) if delivered by first-class registered
or certified mail domestic, three business days after so mailed, (ii) if
delivered by nationally recognized overnight carrier, one (1) business day
after so mailed, (iii) if delivered by International Federal Express (or
comparable service), two (2) business days after so mailed, (iv) if delivered
by facsimile, upon electric confirmation of receipt and shall be delivered as
addressed as follows:

 

	
  (a)

  	
   

  	
  if to the
  Company, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Magnetek, Inc.

  
	
   

  	
   

  	
  10900 Wilshire
  Boulevard, Suite 850

  
	
   

  	
   

  	
  Los Angeles,
  CA  90024

  
	
   

  	
   

  	
  Attention:  Chief Financial Officer

  
	
   

  	
   

  	
  Phone:  (310) 208-1980

  
	
   

  	
   

  	
  Telecopy:  (310) 208-6133

  

 

13

 

	
   

  	
   

  	
  with a copy
  mailed to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Gibson Dunn
  & Crutcher LLP

  
	
   

  	
   

  	
  333 South Grand
  Avenue

  
	
   

  	
   

  	
  Los Angeles,
  California 90071-3197

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:  Jennifer
  Bellah Maguire

  
	
   

  	
   

  	
  Phone:  (213) 229-7986

  
	
   

  	
   

  	
  Telecopy:  (213) 229-6986

  

 

(b)                                  if
to the Investor, at its address on the Signature Page, or at such other address
or addresses as may have been furnished to the Company in writing.

 

9.                                      Changes.  This Agreement may not be modified or
amended except pursuant to an instrument in writing signed by the Company and
the Investor.

 

10.                               Headings.  The headings of the various sections of
this Agreement have been inserted for convenience of reference only and shall
not be deemed to be part of this Agreement.

 

11.                               Severability.  In case any provision contained in this
Agreement should be invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby.

 

12.                               Governing
Law; Attorneys’ Fees.  This
Agreement shall be governed by, and construed in accordance with, the internal
laws of the State of California, without giving effect to the principles of
conflicts of law.  In the event of any
action or proceeding arising from or relating to this Agreement (or any Exhibit
hereto), the prevailing party shall be entitled to recover its attorneys’ fees.

 

13.                               Counterparts.  This Agreement may be executed in two or
more counterparts, each of which shall constitute an original, but all of
which, when taken together, shall constitute but one instrument, and shall
become effective when one or more counterparts have been signed by each party
hereto and delivered to the other parties.

 

14.                               Confidential
Disclosure Agreement.  Notwithstanding any provision of this
Agreement to the contrary, any confidential disclosure agreement previously
executed by the Company and the Investor in connection with the transactions
contemplated by this Agreement shall remain in full force and effect in
accordance with its terms following the execution of this Agreement and the
consummation of the transactions contemplated hereby.

 

15.                               Independent
Nature of Investor’s Obligations and Rights.  The obligations of the Investor and each Other Investor under the
Agreements are several and not joint with the obligations of any Other
Investor, and no Investor shall be responsible in any way for the performance
of the obligations of any Other Investor under the Agreements.  The decision of the Investor to purchase
Shares pursuant to this Agreement has been made by the Investor independently
of any Other Investor.  Nothing contained
in any of the Agreements and no action taken by the Investor or any Other Investor
pursuant thereto, shall be deemed to constitute the Investor and the Other
Investors as a partnership, an association, a joint venture or any other kind
of entity, or to create a presumption that the Investor and the Other Investors
are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated by the Agreements.   The Investor acknowledges

 

14

 

that no Other Investor
has acted as agent for the Investor in connection with making its investment
hereunder and that no Other Investor will be acting as agent of the Investor in
connection with monitoring its investment in the Shares or enforcing its rights
under this Agreement or the Registration Rights Agreement.  The Investor and each Other Investor shall
be entitled to independently protect and enforce their respective rights,
including without limitation the rights arising out of the Agreements or out of
the Registration Rights Agreement, and it shall not be necessary for any Other
Investor to be joined as an additional party in any proceeding brought by the
Investor for such purpose.

 

16.                               Entire
Agreement.  This Agreement
constitutes the entire agreement among the parties hereto with respect to the
subject matter hereof and thereof. 
There are no restrictions, promises, warranties or undertakings, other
than those set forth or referred to herein. 
This Agreement supersedes all prior agreements and understandings among
the parties hereto with respect to the subject matter hereof.

 

15

 

Exhibit A

 

MAGNETEK,
INC.

 

STOCK
CERTIFICATE QUESTIONNAIRE

 

Pursuant to Section 4 of the Agreement, please provide
us with the following information:

 

 

	
  1.

  	
  The exact name
  that your Shares are to be registered in (this is the name that will appear
  on your stock certificate(s)).  You
  may use a nominee name if appropriate:

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  The relationship
  between the Investor and the registered holder listed in response to item 1
  above:

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  The mailing
  address of the registered holder listed in response to item 1 above:

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  The Social
  Security Number or Tax Identification Number of the registered holder listed
  in the response to item 1 above:

  	
   

  

 

A-1

 

Exhibit B

 

MAGNETEK,
INC.

 

INVESTOR QUESTIONNAIRE

 

(all non-public information will be
treated confidentially)

 

To: B. Riley &
Co.,

 

This Investor Questionnaire (“Questionnaire”) must be
completed by each potential investor in connection with the offer and sale of
the shares of the common stock, par value $.01 per share (the “Securities”),
of Magnetek, Inc. (the “Company”). 
The Securities are being offered and sold by the Company without
registration under the Securities Act of 1933, as amended (the “Securities
Act”), and the securities laws of certain states, in reliance on the
exemptions contained in Section 4 of the Securities Act and on Regulation D
promulgated thereunder and in reliance on similar exemptions under applicable
state laws.  The Company must determine
that a potential investor meets certain suitability requirements before
offering or selling Securities to such investor.  The purpose of this Questionnaire is to assure the Company that
each investor will meet the applicable suitability requirements.  The information supplied by you will be used
in determining whether you meet such criteria, and reliance upon the private
offering exemption from registration is based in part on the information herein
supplied.

 

This Questionnaire does not constitute an offer to
sell or a solicitation of an offer to buy any security.  Your answers will be kept strictly
confidential.  However, by signing this
Questionnaire you will be authorizing the Company to provide a completed copy
of this Questionnaire to such parties as the Company deems appropriate in order
to ensure that the offer and sale of the Securities will not result in a
violation of the Securities Act or the securities laws of any state and that
you otherwise satisfy the suitability standards applicable to purchasers of the
Securities.  All potential investors
must answer all applicable questions and complete, date and sign this
Questionnaire.  Please print or type
your responses and attach additional sheets of paper if necessary to complete
your answers to any item.

 

A.                                    Background Information

 

	
  Name:

  	
   

  
	
   

  
	
  Business
  Address:

  	
   

  
	
  (Number and
  Street)

  
	
   

  
	
  (City)

  	
  (State)

  	
  (Zip Code)

  
	
   

  
	
  Telephone
  Number: 
  (         )

  	
   

  
	
   

  
	
  Residence
  Address:

  	
   

  
	
  (Number and
  Street)

  
	
   

  
	
  (City)

  	
  (State)

  	
  (Zip Code)

  
	
   

  	
   

  	
   

  
	
  Telephone
  Number: 
  (         )

  	
   

  
	
   

  
	
  If an
  individual:

  	
   

  
							

 

B-1

 

	
  Age:

  	
   

  	
  Citizenship:

  	
   

  	
   

  	
  Where registered
  to vote:

  	
   

  
	
   

  	
   

  	
   

  
	
  If a
  corporation, partnership, limited liability company, trust or other entity:

  
	
   

  
	
  Type of entity:

  	
   

  
	
   

  
	
  State of
  formation:

  	
   

  	
   

  	
  Date of
  formation:

  	
   

  
	
   

  
	
  Social Security
  or Taxpayer Identification No.

  	
   

  
	
   

  
	
  Send all
  correspondence to (check one):

  	
   

  	
   

  	
  Residence
  Address

  	
   

  	
  Business Address

  
																	

 

B.                                    Status as Accredited Investor

 

The undersigned is
an “accredited investor” as such term is defined in Regulation D under the
Securities Act, as at the time of the sale of the Securities the undersigned
falls within one or more of the following categories (Please initial one or
more, as applicable):

 

(1)                                  a
bank as defined in Section 3(a)(2) of the Securities Act, or a savings and loan
association or other institution as defined in Section 3(a)(5)(A) of the
Securities Act whether acting in its individual or fiduciary capacity; a broker
or dealer registered pursuant to Section 15 of the Securities Exchange Act of
1934; an insurance company as defined in Section 2(13) of the Securities Act;
an investment company registered under the Investment Company Act of 1940 or a
business development company as defined in Section 2(a)(48) of that act; a
Small Business Investment Company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business Investment Act
of 1958; a plan established and maintained by a state, its political
subdivisions, or any agency or instrumentality of a state or its political
subdivisions for the benefit of its employees, if such plan has total assets in
excess of $5,000,000; an employee benefit plan within the meaning of the
Employee Retirement Income Security Act of 1974 if the investment decision is
made by a plan fiduciary, as defined in Section 3(21) of such act, which is
either a bank, savings and loan association, insurance company, or registered
investment adviser, or if the employee benefit plan has total assets in excess
of $5,000,000 or, if a self-directed plan, with the investment decisions made
solely by persons that are accredited investors;(1)

 

(2)                                  a
private business development company as defined in Section 202(a)(22) of the
Investment Adviser Act of 1940;

 

(3)                                  an
organization described in Section 501(c)(3) of the Internal Revenue Code of
1986, as amended, corporation, Massachusetts or similar business trust, or
partnership, not formed for the specific purpose of acquiring the Securities
offered, with total assets in excess of $5,000,000;

 

(4)                                  a
natural person whose individual net worth, or joint net worth with that
person’s spouse, at the time of such person’s purchase of the Securities
exceeds $1,000,000;

 

(1)   As used in this Questionnaire, the term “net
worth” means the excess of total assets over total liabilities.  In computing net worth for the purpose of
subsection (4), the principal residence of the investor must be valued at cost,
including cost of improvements, or at recently appraised value by an institutional
lender making a secured loan, net of encumbrances.  In determining income, the investor should add to the investor’s
adjusted gross income any amounts attributable to tax exempt income received,
losses claimed as a limited partner in any limited partnership, deductions
claimed for depreciation, contributions to an IRA or KEOGH retirement plan,
alimony payments, and any amount by which income from long-term capital gains
has been reduced in arriving at adjusted gross income.

 

B-2

 

(5)                                  a
natural person who had an individual income in excess of $200,000 in each of
the two most recent years or joint income with that person’s spouse in excess
of $300,000 in each of those years and has a reasonable expectation of reaching
the same income level in the current year;

 

(6)                                  a
trust, with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the Securities offered, whose purchase is directed by a
sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; and

 

(7)                                  an
entity in which all of the equity owners are accredited investors (as defined
above).

 

C.                                    Representations

 

The undersigned
hereby represents and warrants to the Company as follows:

 

1.                                      Any
purchase of the Securities would be solely for the account of the undersigned
and not for the account of any other person or with a view to any resale,
fractionalization, division, or distribution thereof.

 

2.                                      The
information contained herein is complete and accurate and may be relied upon by
the Company, and the undersigned will notify the Company immediately of any
material change in any of such information occurring prior to the closing, if
any, with respect to the purchase of Securities by the undersigned or any co-purchaser.

 

3.                                      There
are no suits, pending litigation, or claims against the undersigned that could
materially affect the net worth of the undersigned as reported in this
Questionnaire.

 

4.                                      The
undersigned acknowledges that there may occasionally be times when the Company,
following consultation with its counsel, determines that it must suspend the
use of the Prospectus forming a part of the Registration Statement (as such
terms are defined in the Stock Purchase Agreement to which this Questionnaire
is attached).  The undersigned is aware
that, in such event, the Securities will not be subject to ready liquidation,
and that any Securities purchased by the undersigned would have to be held
during such suspension.  The overall
commitment of the undersigned to investments which are not readily marketable
is not excessive in view of the undersigned’s net worth and financial
circumstances, and any purchase of the Securities will not cause such
commitment to become excessive.  The
undersigned is able to bear the economic risk of an investment in the
Securities.

 

5.                                      The
undersigned has carefully considered the potential risks relating to the
Company and a purchase of the Securities, and fully understands that the
Securities are speculative investments which involve a high degree of risk of
loss of the undersigned’s entire investment. 
Among others, the undersigned has carefully considered each of the risks
described under the headings “Risk Factors” in the Company’s Annual Report on
Form 10-K for the year ended June 30, 2003.

 

B-3

 

IN WITNESS
WHEREOF, the undersigned has executed this Questionnaire this
           day of
             ,
2003, and declares under oath that it is truthful and correct.

 

 

	
   

  	
  Print Name

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  (required for
  any purchaser that is a corporation, partnership, trust or other entity)

  
				

 

B-4

 

Exhibit C

 

Registration
Rights Agreement

 

C-1

 

EXHIBIT D-1

 

FORM OF LEGAL OPINION

 

[GDC]

 

opinion to be subject to customary
assumptions, qualifications and limitations]

 

1.                                       The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware.  The Company has the corporate
power and authority to own its properties and assets, to carry on its business
as described in its Form 10-K, and to enter into the Transaction Documents and
perform its obligations thereunder.

 

2.                                       The Transaction Documents are legal,
valid and binding obligations of the Company enforceable against it in
accordance with their terms,

 

3.                                       The shares of Common Stock to be issued
to the Investors pursuant to the Stock Purchase Agreement (the “Shares”) have
been duly authorized and, when issued and paid for in accordance with the terms
of the Agreement, will be validly issued, fully paid and nonassessable.  The Shares are not subject to any preemptive
rights provided for in the Company’s Certificate of Incorporation.

 

4.                                       Based in part upon the representations of
the Investors contained in the Agreement, the offer, sale, issuance and
delivery of the Common Stock under the circumstances contemplated by the
Agreement are exempt from the registration requirements of the Securities Act
of 1933, as amended (the “Act”).

 

5.                                       Except as disclosed in the schedules to
the Agreement, the execution and delivery of the Transaction Documents and the
performance by the Company of its terms will not breach or result in a
violation of the Company’s Certificate of Incorporation or Bylaws

 

6.                                       Based in part upon the representations of
the Investors contained in the Agreement, no consent, approval or authorization
of, or declaration or filing with, any governmental authority of the State of
California or the United States applicable to the Company that is, in our
experience, generally applicable to transactions in the nature of those
contemplated by the Transaction Documents, or the General Corporation Law of
the State of Delaware is required in connection with the execution, delivery
and performance by the Company of the Transaction Documents, except for such
consents, approvals or authorizations of, or declarations or filings (i) as may
be required under the Act, the Securities Exchange Act of 1934, as amended, or
by the New York Stock Exchange; (ii) as may be required under any state
securities or Blue Sky laws, (iii) as may be contemplated by the Registration
Rights Agreement , (iv) as have been made or obtained on or before the date
hereof or (v) that, if not made or obtained, would not have a Material Adverse
Effect.

 

D-1

 

EXHIBIT D-2

 

FORM OF LEGAL OPINION

 

[General Counsel of Magnetek]

 

opinion to be subject to customary
assumptions, qualifications and limitations]

 

1.                                       The
Company is duly qualified to do business as a foreign corporation and is in
good standing in each other state in which the nature of its activities or of
its properties owned or leased makes such qualification necessary, except to
the extent that failure to so qualify would not have a material adverse effect
on the Company and its Subsidiaries (taken as a whole).

 

2.                                       The
Transaction Documents have been duly authorized by all necessary corporate
action on the part of the Company and have been duly executed and delivered by
the Company.

 

3.                                       Except
as disclosed in the schedules to the Agreement, the execution and delivery of
the Transaction Documents and the performance by the Company of its terms (a)
will not constitute a material breach of the terms, conditions or provisions
of, or constitute a default under, any contract, undertaking, indenture or
other agreement or instrument identified in Appendix 1 hereto and (b)
will not result in the creation of any lien on any material portion of the
assets of the Company and its Subsidiaries.

 

4.                                       Except
as disclosed in the SEC Reports, there is, to my current actual knowledge, no
action, suit or proceeding pending against the Company or its properties in any
court or before any governmental authority or agency, or arbitration board or
tribunal which, if adversely determined, could reasonably be expected to have a
Material Adverse Effect.

 

D-2

 

APPENDIX 1

 

D-3Exhibit
4.2

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT, dated as of October    , 2003 (this “Agreement”),
is made by and among Magnetek, Inc., a Delaware corporation, with headquarters
located at 10900 Wilshire Boulevard, Suite 850, Los Angeles, California 90024
(the “Company”), and the investors named on the signature pages hereto
(the “Investors”).

 

RECITALS:

 

A.                                   In
connection with the Stock Purchase Agreements dated October
    , 2003 made by and among the Investors and the Company
(the “Purchase Agreement”), the Company has agreed, upon the terms and
subject to the conditions of the Purchase Agreement, to issue and sell to the
Investors an aggregate of
            shares of
the Company’s Common Stock.

 

B.                                     In
order to induce the Investors to execute and deliver the Purchase Agreement,
the Company has agreed to provide certain registration rights under the
Securities Act and applicable state securities laws with respect to the Common
Shares.

 

In consideration of the
premises and the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company and the Investors hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Capitalized terms used
and not otherwise defined herein have the respective meanings given them set
forth in the Purchase Agreement.  In
addition, as used in this Agreement, the following terms have the following
meanings:

 

1.1                                 “Common
Shares” means the shares of Common Stock sold pursuant to the Purchase
Agreement.

 

1.2                                 “Investors”
means the Investors and any of their transferees or assignees who agree to
become bound by the provisions of this Agreement in accordance with Article IX
hereof.

 

1.3                                 “Registrable
Securities” means the Common Shares sold pursuant to the Purchase Agreement
and any shares of capital stock issued or issuable from time to time (with any
adjustments) in exchange for or otherwise with respect to the Common Shares.

 

1.4                                 “Registration
Period” means the period between the date of this Agreement and the earlier
of (i) the date on which all of the Registrable Securities have been sold
by the Investors, or (ii) the date on which all the Registrable Securities
(in the reasonable opinion of the Investors’ counsel, and excluding any
Registrable Securities held by an Investor that has become an affiliate of the
Company after the date hereof) may be immediately sold by the Investors without
registration and without restriction (including without limitation as to volume
by each

 

 

holder thereof) as to the
number of Registrable Securities to be sold, pursuant to Rule 144 or
otherwise.

 

1.5                                 “Registration
Statement” means a Registration Statement of the Company filed under the
Securities Act.

 

1.6                                 The
terms “register,” “registered,” and “registration” refer
to a registration effected by preparing and filing a Registration Statement or
statements in compliance with the Securities Act and pursuant to Rule 415
and the declaration or ordering of effectiveness of such Registration Statement
by the SEC.

 

1.7                                 “Rule
415” means Rule 415 under the Securities Act, or any successor Rule
providing for offering securities on a continuous basis, and applicable rules
and regulations thereunder.

 

ARTICLE
II

REGISTRATION

 

2.1                                 Mandatory
Registration.  The Company will use
best efforts to file with the SEC a Registration Statement on Form S-3
registering the Registrable Securities and no other securities for resale
within 20 business days after the Closing Date of the purchase of the Common
Shares under the Purchase Agreement.  If
Form S-3 is not available at that time, then the Company will file a
Registration Statement on such form as is then available to effect a
registration of the Registrable Securities, subject to the consent of the
Investors, which consent will not be unreasonably withheld.

 

2.2                                 Effectiveness
of the Registration Statement.  The
Company will use its best efforts to cause the Registration Statement to be
declared effective by the SEC as soon as practicable after filing, and in any
event no later than the 90th day after the Closing Date (the “Required
Effective Date”).  However, so long
as the Company filed the Registration Statement within 20 business days after
the Closing Date, (a) if the SEC takes the position that registration of
the resale of the Registrable Securities by the Investors is not available
under applicable laws, rules and regulations and that the Company must register
the offering of the Registrable Securities as a primary offering by the
Company, or (b) if the Registration Statement receives SEC review, then
the Required Effective Date will be the 120th day after the Closing Date.  In the case of an SEC response described in
clause (a), the Company will, within 40 business days after the date the
Company receives such SEC response, file a Registration Statement as a primary
offering.  The Company’s best efforts
will include, but not be limited to, promptly responding to all comments
received from the staff of the SEC.  If
the Company receives notification from the SEC that the Registration Statement
will receive no action or review from the SEC, then the Company will submit a
request for accelerated effectiveness of the Registration Statement within five
business days after such SEC notification. 
Once the Registration Statement is declared effective by the SEC, the
Company will cause the Registration Statement to remain effective throughout
the Registration Period, except as permitted under Section 3.

 

2

 

2.3                                 Liquidated
Damages Payments by the Company.  If
(i) at any time after effectiveness of the Registration Statement, sales cannot
be made thereunder for any reason, including the suspension of effectiveness of
the Registration Statement as described in Section 3.5, for a period of more
than 20 consecutive business days, or 60 days in the aggregate, during any
12-month period or (ii) the Common Stock is not listed or included for
quotation on the NYSE, Nasdaq, Nasdaq SmallCap, or AMEX for more than an
aggregate of 10 business days in any 12-month period, then the Company will
thereafter make cash payments to each Investor as  compensation for such delay. 
The amount of the cash payment made to each Investor will be equal to 2%
of the purchase price paid for the Common Shares purchased by the Investor and
not previously sold by the Investor for each 30 day period that sales cannot be
made under the effective Registration Statement or the Common Stock is not
listed or included for quotation on the NYSE, Nasdaq, Nasdaq SmallCap, or AMEX,
up to a maximum of six (6) such thirty (30) day periods.  These payments will be prorated on a daily
basis during the 30 day period and will be paid to each Investor in cash within
five business days following the end of each month after the 20th day that
sales could not be made.  The Liquidated
Damages set forth in this Section 2.3 and in Section 2.4 shall be the exclusive
remedy available to the Investors for any late registration described in
Section 2.4 or any suspension of the Registration Statement described in this
Section 2.3.  In no event shall the
Company be required to pay any duplicative liquidated damages in the event any
such suspension or failure to timely register are concurrent of each other

 

2.4                                 Liquidated
Damages as a result of Late Registration. 
If the Registration Statement has not been declared effective by the
Required Effective Date, then the Company will make cash payments to each
Investor as  compensation for such delay
(the “Late Registration Payments”). 
The Late Registration Payments will be equal to 2% of the purchase price
paid for the Common Shares purchased by such Investor and not previously sold
by such Investor for each 30 day period after the Required Effective Date, up
to a maximum of six (6) such thirty (30) day periods.  The Late Registration Payments will be prorated on a daily basis
during each 30 day period and will be paid to the Investors in cash within five
business days after the earlier of (i) the end of each such 30 day period
following the Required Effective Date or (ii) the effective date of the
Registration Statement.  As set forth
above, the liquidated damages in this Section 2.4 shall be the exclusive remedy
in the event the Registration Statement has not been declared effective by the
Required Effective Date.

 

2.5                                 Eligibility
to use Form S-3.  The Company
represents and warrants that it meets the requirements for the use of
Form S-3 for registration of the sale by the Investors of the Registrable
Securities.  The Company will file all
reports required to be filed by the Company with the SEC in a timely manner so
as to preserve its eligibility for the use of Form S-3.

 

ARTICLE
III

ADDITIONAL
OBLIGATIONS OF THE COMPANY

 

3.1                                 Continued
Effectiveness of Registration Statement. 
Subject to the limitations set forth in Section 3.5, the Company
will keep the Registration Statement covering the Registrable Securities
effective under Rule 415 at all times during the Registration Period.

 

3

 

3.2                                 Accuracy
of Registration Statement.  Any
Registration Statement (including any amendments or supplements thereto and
prospectuses contained therein) filed by the Company covering Registrable
Securities will not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading.  The Company will prepare
and file with the SEC such amendments (including post-effective amendments) and
supplements to the Registration Statement and the prospectus used in connection
with the Registration Statement as may be necessary to permit sales pursuant to
the Registration Statement at all times during the Registration Period, and,
during such period, will comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities of the Company covered
by the Registration Statement until the termination of the Registration Period,
or if earlier, until such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof as set forth in the Registration Statement.

 

3.3                                 Furnishing
Documentation.  The Company will
furnish to each Investor whose Registrable Securities are included in a
Registration Statement, or to its legal counsel if it notifies the Company to
do so, (a) promptly after each document is prepared and publicly distributed,
filed with the SEC or received by the Company, one copy of any Registration
Statement filed pursuant to this Agreement and any amendments thereto, each
preliminary prospectus and final prospectus and each amendment or supplement
thereto; and (b) a number of copies of a typed version of the (i) the
prospectus, including a preliminary prospectus, and all amendments and
supplements thereto, and (ii) such other documents as the Investor may
reasonably request in order to facilitate the disposition of the Registrable
Securities owned by the Investor.  The
Company will immediately notify by facsimile each Investor whose Registrable
Securities are included in any Registration Statement of the effectiveness of
the Registration Statement and any post-effective amendment.

 

3.4                                 Additional
Obligations.  The Company will use
its best efforts to (a) register and qualify the Registrable Securities covered
by a Registration Statement under such other securities or blue sky laws of
such jurisdictions as each Investor who holds (or has the right to hold) Registrable
Securities being offered reasonably requests, (b) prepare and file in those
jurisdictions any amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain their effectiveness during the Registration Period, (c) take any other
actions necessary to maintain such registrations and qualifications in effect
at all times during the Registration Period, and (d) take any other actions
reasonably necessary or advisable to qualify the Registrable Securities for
sale in such jurisdictions. 
Notwithstanding the foregoing, the Company is not required, in
connection with such obligations, to: (i) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 3.4, (ii) subject itself to general taxation in any such jurisdiction,
(iii) file a general consent to service of process in any such
jurisdiction, (iv) provide any undertakings that cause material expense or
burden to the Company, or (v) make any change in its charter or bylaws.

 

4

 

3.5                                 Suspension
of Registration.

 

(a)                                  The
Company will notify (by telephone and also by facsimile or electronic mail and
reputable overnight courier) each Investor who holds Registrable Securities
being sold pursuant to a Registration Statement of the happening of any event
of which the Company has knowledge as a result of which the prospectus included
in the Registration Statement as then in effect includes an untrue statement of
a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. 
The Company will make such notification as promptly as practicable after
the Company becomes aware of the event (but in no event, without the prior
written consent of the Investor, will the Company disclose to any Investor any
of the facts or circumstances regarding the event), will promptly (but in no
event more than ten business days) prepare a supplement or amendment to the
Registration Statement to correct such untrue statement or omission, and will
deliver a number of copies of such supplement or amendment to each Investor as
such Investor may reasonably request.

 

(b)                                 Notwithstanding
the obligations under Section 3.5(a), if in the good faith judgment of the
Company, following consultation with legal counsel, it would be detrimental to
the Company and its stockholders for resales of Registrable Securities to be
made pursuant to the Registration Statement (i) due to the existence of a
material development or potential material development involving the Company
which the Company would be obligated to disclose in the Registration Statement,
which disclosure would be premature or otherwise inadvisable at such time or
would have a Material Adverse Effect upon the Company and its stockholders, or
(ii) because, in the good faith judgment of the Company’s Board of
Directors, it would adversely affect or require premature disclosure of the
filing of a Company-initiated registration of any class of its equity
securities, the Company will have the right to suspend the use of the
Registration Statement for a period of not more than ninety days, provided,
however, that the Company may so defer or suspend the use of the
Registration Statement no more than one time in any twelve-month period, and provided,
further, that, after deferring or suspending the use of the Registration
Statement, the Company may not again defer or suspend the use of the
Registration Statement until a period of thirty days has elapsed after
resumption of the use of the Registration Statement.  The provisions of Section 2.3 will apply to any suspension of the
Registration Statement under this Section 3.5(b).  If the use of the Registration Statement is suspended by the
Company, the Company will promptly give notice of the suspension to all
Investors whose securities are covered by the Registration Statement, and will
promptly notify each such Investor as soon as the use of the Registration
Statement may be resumed

 

3.6                                 Review
by the Investors.  The Company will
engage a single firm of legal counsel for the benefit of the Investors,
reasonably acceptable to the Investors who hold a majority in interest of the
Registrable Securities being sold pursuant to a Registration Statement, to
review the Registration Statement and all amendments and supplements thereto
(as well as all requests for acceleration or effectiveness thereof) a reasonable
period of time prior to their filing with the SEC, and will not file any
document in a form to which such counsel reasonably objects, unless otherwise
required by law in the opinion of the Company’s counsel.  The sections of any such Registration
Statement including information with respect to the Investors, the Investors’
beneficial ownership of securities of the Company or the Investors’ intended
method of

 

5

 

disposition of Registrable Securities must conform to
the information provided to the Company by each of the Investors

 

3.7                                 Listing.  The Company will (i) cause all of the
Registrable Securities covered by each Registration Statement to be listed on
each national securities exchange on which securities of the same class or
series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange, or
(ii) to the extent the securities of the same class or series are not then
listed on a national securities exchange, secure the designation and quotation
of all of the Registrable Securities covered by each Registration Statement on
Nasdaq and, without limiting the generality of the foregoing, arrange for at
least two market makers to register with the National Association of Securities
Dealers, Inc. as such with respect to such Registrable Securities.

 

3.8                                 Transfer
Agent; Registrar.  The Company will
provide a transfer agent and registrar, which may be a single entity, for the
Registrable Securities not later than the effective date of the Registration
Statement.

 

3.9                                 Share
Certificates.  The Company will
cooperate with the Investors who hold Registrable Securities being sold to
facilitate the timely preparation and delivery of certificates (not bearing any
restrictive legends) representing Registrable Securities to be offered pursuant
to a Registration Statement and will enable such certificates to be in such
denominations or amounts as the case may be, and registered in such names as
the Investors may reasonably request, all in accordance with Article V of
the Purchase Agreement.

 

3.10                           Securities
Laws Compliance.  The Company will
comply with all applicable laws related to any Registration Statement relating
to the sale of Registrable Securities and to offering and sale of securities
and with all applicable rules and regulations of governmental authorities in
connection therewith (including, without limitation, the Securities Act, the
Exchange Act and the rules and regulations promulgated by the SEC).

 

3.11                           Further
Assurances.  The Company will take
all other reasonable actions as any Investor or the underwriters, if any, may
reasonably request to expedite and facilitate disposition by such Investor of
the Registrable Securities pursuant to the Registration Statement.

 

3.12                           No
Additional Selling Shareholders. 
The Company will not, and will not agree to, allow the holders of any
securities of the Company to include any of their securities in any
Registration Statement under Section 2.1 hereof, or any amendment or
supplement thereto under Section 3.2 hereof, without the consent of the
holders of a majority in interest of the Registrable Securities.

 

ARTICLE
IV

OBLIGATIONS
OF THE INVESTORS

 

4.1                                 Investor
Information.  As a condition to the obligations
of the Company to complete any registration pursuant to this Agreement with
respect to the Registrable Securities of each Investor, such Investor will
furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable
Securities held by it as is reasonably required by the Company to effect the
registration of the

 

6

 

Registrable Securities.  At least 5 business days prior to the first anticipated filing
date of a Registration Statement for any registration under this Agreement, the
Company will notify each Investor of the information the Company requires from
that Investor if the Investor elects to have any of its Registrable Securities
included in the Registration Statement. 
If, within two business days prior to the filing date, the Company has
not received the requested information from an Investor, then the Company may file
the Registration Statement without including Registrable Securities of that
Investor.  Each Investor shall promptly
notify the Company of any changes in the information provided by such Investor
to the Company.

 

4.2                                 Further
Assurances.  Each Investor will
cooperate with the Company, as reasonably requested by the Company, in
connection with the preparation and filing of any Registration Statement
hereunder, unless such Investor has notified the Company in writing of such
Investor’s election to exclude all of such Investor’s Registrable Securities
from the Registration Statement.

 

4.3                                 Prospectus
Delivery.  In the event of a sale of
Registrable Securities by an Investor pursuant to a Registration Statement,
unless such requirement is waived by the Company in writing, such Investor
shall deliver to the Company’s transfer agent, with a copy to the Company, a
Certificate of Subsequent Sale substantially in the form attached hereto as
Exhibit A, so that such Registrable Securities may be properly transferred.

 

4.4                                 Suspension
of Sales.  Upon receipt of any
notice from the Company of the happening of any event of the kind described in
Section 3.5, each Investor will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such
Registrable Securities until it receives copies of the supplemented or amended
prospectus contemplated by Section 3.5. 
If so directed by the Company, each Investor will deliver to the Company
(at the expense of the Company) or destroy (and deliver to the Company a
certificate of destruction) all copies in the Investor’s possession (other than
a limited number of file copies) of the prospectus covering such Registrable
Securities that is current at the time of receipt of such notice.

 

ARTICLE
V

EXPENSES
OF REGISTRATION

 

The Company will bear all
reasonable expenses, other than sales commissions and transfer taxes, if any,
incurred in connection with registrations, filings or qualifications pursuant
to Articles II and III of this Agreement, including, without limitation, all
registration, listing and qualifications fees, printers and accounting fees,
the fees and disbursements of counsel for the Company, and the reasonable fees
and disbursements of one firm of legal counsel engaged for the benefit of the
Investors pursuant to Section 3.6 hereof, not to exceed $10,000 in the
aggregate.

 

7

 

ARTICLE
VI

INDEMNIFICATION

 

In the event that any
Registrable Securities are included in a Registration Statement under this
Agreement:

 

6.1                                 To
the extent permitted by law, the Company will indemnify and hold harmless each
Investor that holds such Registrable Securities, any directors or officers of
such Investor or such underwriter and any person who controls such Investor or
such underwriter within the meaning of the Securities Act or the Exchange Act
(each, an “Indemnified Person”) against any losses, claims, damages,
expenses or liabilities (joint or several) (collectively, and together with
actions, proceedings or inquiries by any regulatory or self-regulatory
organization, whether commenced or threatened in respect thereof, “Claims”)
to which any of them become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such Claims arise out of or are based upon any of the
following statements, omissions or violations in a Registration Statement filed
pursuant to this Agreement, any post-effective amendment thereof or any
prospectus included therein:  (a) any
untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement or any post-effective amendment thereof or the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, (b)
any untrue statement or alleged untrue statement of a material fact contained
in the prospectus (as it may be amended or supplemented) or the omission or
alleged omission to state therein any material fact necessary to make the
statements made therein, in light of the circumstances under which the
statements therein were made, not misleading, or (c) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act or any other
law, including without limitation any state securities law or any rule or regulation
thereunder (the matters in the foregoing clauses (a) through (c) being,
collectively, “Violations”). 
Subject to the restrictions set forth in Section 6.3 with respect
to the number of legal counsel, the Company will reimburse the Investors and
each such controlling person and each such other Indemnified Person, promptly
as such expenses are incurred and are due and payable, for any legal fees or
other reasonable expenses incurred by them in connection with investigating or
defending any Claim.  Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 6.1 (i) does not apply to a Claim by an
Indemnified Person arising out of or based upon a Violation that occurs in
reliance upon and in conformity with information furnished in writing to the
Company by such Indemnified Person expressly for use in connection with the
preparation of the Registration Statement or any such amendment thereof or
supplement thereto, if such prospectus was timely made available by the Company
pursuant to Section 3.3 hereof; and (ii) does not apply to amounts paid in
settlement of any Claim if such settlement is made without the prior written
consent of the Company, which consent will not be unreasonably withheld. This
indemnity obligation will remain in full force and effect regardless of any
investigation made by or on behalf of the Indemnified Persons and will survive
the transfer of the Registrable Securities by the Investors under
Article IX of this Agreement.

 

6.2                                 In
connection with any Registration Statement in which an Investor is
participating, each such Investor will indemnify and hold harmless, to the same
extent and in the same manner set forth in Section 6.1 above, the Company, each
of its directors, each of its officers who signs the Registration Statement,
each person, if any, who controls the Company

 

8

 

within
the meaning of the Securities Act or the Exchange Act, and any other
stockholder selling securities pursuant to the Registration Statement or any of
its directors or officers or any person who controls such stockholder within
the meaning of the Securities Act or the Exchange Act (each an “Indemnified
Person”) against any Claim to which any of them may become subject under
the Securities Act, the Exchange Act or otherwise, insofar as such Claim arises
out of or is based upon any Violation, in each case to the extent (and only to
the extent) that such Violation occurs in reliance upon and in conformity with
written information furnished to the Company by such Investor expressly for use
in connection with such Registration Statement.  Subject to the restrictions set forth in Section 6.3, such
Investor will promptly reimburse any legal or other expenses (promptly as such
expenses are incurred and due and payable) reasonably incurred by them in
connection with investigating or defending any such Claim.  However, the indemnity agreement contained
in this Section 6.2 does not apply to amounts paid in settlement of any Claim
if such settlement is effected without the prior written consent of such
Investor, which consent will not be unreasonably withheld, and no Investor will
be liable under this Agreement (including this Section 6.2 and Article VII) for
the amount of any Claim that exceeds the net proceeds actually received by such
Investor as a result of the sale of Registrable Securities pursuant to such
Registration Statement.  This indemnity
will remain in full force and effect regardless of any investigation made by or
on behalf of an Indemnified Party and will survive the transfer of the
Registrable Securities by the Investors under Article IX of this
Agreement.

 

6.3                                 Promptly
after receipt by an Indemnified Person under this Article VI of notice of
the commencement of any action (including any governmental action), such
Indemnified Person will, if a Claim in respect thereof is to be made against
any indemnifying party under this Article VI, deliver to the indemnifying
party a written notice of the commencement thereof.  The indemnifying party may participate in, and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party
similarly given notice, assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying parties and the Indemnified
Person.  In that case, the indemnifying
party will diligently pursue such defense. 
If, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person and the
indemnifying party would be inappropriate due to actual or potential conflicts
of interest between the Indemnified Person and any other party represented by
such counsel in such proceeding or the actual or potential defendants in, or
targets of, any such action including the Indemnified Person, and any such
Indemnified Person reasonably determines that there may be legal defenses
available to such Indemnified Person that are different from or in addition to
those available to the indemnifying party, then the Indemnified Person is
entitled to assume such defense and may retain its own counsel, with the fees
and expenses to be paid by the indemnifying party.  The Company will pay for only one separate legal counsel for the
Investors collectively, and such legal counsel will be selected by the
Investors holding a majority in interest of the Registrable Securities.  The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action does not relieve an indemnifying party of any liability to an
Indemnified Person under this Article VI, except to the extent that the
indemnifying party is prejudiced in its ability to defend such action.  The indemnification required by this
Article VI will be made by periodic payments of the amount thereof during
the course of the investigation or defense, as such expense, loss, damage or
liability is incurred and is due and payable.

 

9

 

ARTICLE
VII

CONTRIBUTION

 

To the extent that any indemnification provided for
herein is prohibited or limited by law, the indemnifying party will make the
maximum contribution with respect to any amounts for which it would otherwise
be liable under Article VI to the fullest extent permitted by law.  However, (a) no contribution will be made
under circumstances where the maker would not have been liable for
indemnification under the fault standards set forth in Article VI, (b) no
seller of Registrable Securities guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) will be entitled to
contribution from any seller of Registrable Securities who was not guilty of
such fraudulent misrepresentation, and (c) contribution (together with any
indemnification or other obligations under this Agreement) by any seller of
Registrable Securities will be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities.

 

ARTICLE
VIII

EXCHANGE
ACT REPORTING

 

In order to make available to the Investors the
benefits of Rule 144 or any similar rule or regulation of the SEC that may at
any time permit the Investors to sell securities of the Company to the public
without registration, the Company will:

 

(a)                                  File
with the SEC in a timely manner, and make and keep available, all reports and
other documents required of the Company under the Securities Act and the
Exchange Act so long as the Company remains subject to such requirements (it
being understood that nothing herein limits the Company’s obligations under
Section 4.3 of the Purchase Agreement) and the filing and availability of such
reports and other documents is required for the applicable provisions of Rule
144; and

 

(b)                                 Furnish
to each Investor, so long as such Investor holds Registrable Securities,
promptly upon the Investor’s request, (i) a written statement by the Company
that it has complied with the reporting requirements of Rule 144, the
Securities Act and the Exchange Act, (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents filed by
the Company with the SEC and (iii) such other information as may be
reasonably requested to permit the Investors to sell such securities pursuant
to Rule 144 without registration.

 

ARTICLE
IX

ASSIGNMENT
OF REGISTRATION RIGHTS

 

The rights of the Investors hereunder, including the
right to have the Company register Registrable Securities pursuant to this
Agreement, will be automatically assigned by the Investors to transferees or
assignees of all or any portion of the Registrable Securities, but only if
(a) the Investor agrees in writing with the transferee or assignee to
assign such rights, and a copy of such agreement is furnished to the Company
within a reasonable time after such assignment, (b) the Company is, within
a reasonable time after such transfer or assignment, furnished with written
notice of the name and address of such transferee or assignee and the
securities with

 

10

 

respect to which such registration rights are being transferred or
assigned, (c) after such transfer or assignment, the further disposition
of such securities by the transferee or assignee is restricted under the
Securities Act and applicable state securities laws, (d) at or before the
time the Company received the written notice contemplated by clause (b) of
this sentence, the transferee or assignee agrees in writing with the Company to
be bound by all of the provisions contained herein, (e) such transfer is
made in accordance with the applicable requirements of the Purchase Agreement,
and (f) the transferee is an “accredited investor” as that term is defined
in Rule 501 of Regulation D and is not, and will not become as a
result of the transfer, an affiliate of the Company.

 

ARTICLE
X

AMENDMENT
OF REGISTRATION RIGHTS

 

This Agreement may be amended and the obligations
hereunder may be waived (either generally or in a particular instance, and
either retroactively or prospectively) only with the written consent of the
Company and of the Investors who then hold a two-thirds (2/3) interest of the
Registrable Securities (but not including any Investor who is not affected by
such amendment or waiver).  Any
amendment or waiver effected in accordance with this Article X is binding
upon each Investor and the Company. 
Notwithstanding the foregoing, no amendment or waiver will retroactively
affect any Investor without its consent, or will prospectively adversely affect
any Investor who no longer owns any Registrable Securities without its
consent.  Neither Article VI nor
Article VII hereof may be amended or waived in a manner adverse to an
Investor without its consent.

 

ARTICLE
XI

MISCELLANEOUS

 

11.1                           Conflicting
Instructions.  A person or entity is
deemed to be a holder of Registrable Securities whenever such person or entity
owns of record such Registrable Securities. 
If the Company receives conflicting instructions, notices or elections
from two or more persons or entities with respect to the same Registrable
Securities, the Company will act upon the basis of instructions, notice or
election received from the registered owner of such Registrable Securities.

 

11.2                           Notices.  Any notices required or permitted to be
given under the terms of this Agreement will be given as set forth in the
Purchase Agreement.

 

11.3                           Waiver.  Failure of any party to exercise any right
or remedy under this Agreement or otherwise, or delay by a party in exercising
such right or remedy, does not operate as a waiver thereof.

 

11.4                           Governing
Law; Attorneys’ Fees.  This
Agreement will be governed by and interpreted in accordance with the laws of
the State of California without regard to the principles of conflict of
laws.  The parties hereto hereby submit
to the exclusive jurisdiction of the United States federal and state courts
located in the State of California with respect to any dispute arising under
this Agreement, the agreements entered into in connection herewith or the
transactions contemplated hereby or thereby. 
In the event of any action or proceeding arising

 

11

 

from
or relating to this Agreement, the prevailing party shall be entitled to
recover its attorneys’ fees.

 

11.5                           Severability.  If any provision of this Agreement is
invalid or unenforceable under any applicable statute or rule of law, then such
provision will be deemed modified in order to conform with such statute or rule
of law.  Any provision hereof that may
prove invalid or unenforceable under any law will not affect the validity or
enforceability of any other provision hereof.

 

11.6                           Entire
Agreement.  This Agreement and the
Purchase Agreement (including all schedules and exhibits thereto) constitute
the entire agreement among the parties hereto with respect to the subject matter
hereof and thereof.  There are no
restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein or therein.  This
Agreement supersedes all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof.

 

11.7                           Successors
and Assigns.  Subject to the
requirements of Article IX hereof, this Agreement inures to the benefit of
and is binding upon the successors and assigns of each of the parties
hereto.  Notwithstanding anything to the
contrary herein, including, without limitation, Article IX, the rights of
an Investor hereunder are assignable to and exercisable by a bona fide pledgee
of the Registrable Securities in connection with an Investor’s margin or
brokerage accounts.

 

11.8                           Use
of Pronouns.  All pronouns refer to
the masculine, feminine or neuter, singular or plural, as the context may
require.

 

11.9                           Headings.  The headings of this Agreement are for
convenience of reference only, are not part of this Agreement and do not affect
its interpretation.

 

11.10                     Counterparts.  This Agreement may be executed in two or
more counterparts, each of which is deemed an original but all of which
constitute one and the same agreement. 
This Agreement, once executed by a party, may be delivered to the other
party hereto by facsimile transmission, and facsimile signatures are binding on
the parties hereto.

 

11.11                     Further
Assurances.  Each party will do and
perform, or cause to be done and performed, all such further acts and things,
and will execute and deliver all other agreements, certificates, instruments
and documents, as another party may reasonably request in order to carry out
the intent and accomplish the purposes of this Agreement and the consummation
of the transactions contemplated hereby.

 

11.12                     Consents.  Except as set forth in Article X, all
consents and other determinations to be made by the Investors pursuant to this
Agreement will be made by the Investors or the Investors holding a majority in
interest of the Registrable Securities.

 

11.13                     No Strict
Construction.  The language used in
this Agreement is deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied
against any party.

 

12

 

IN WITNESS WHEREOF, the undersigned Investors and the
Company have caused this Agreement to be duly executed as of the date first
above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  MAGNETEK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  INVESTOR:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

  

 

13

 

EXHIBIT A

 

 

MAGNETEK, INC.

CERTIFICATE OF SUBSEQUENT SALE

 

 

 

 

RE:                              Sale
of Shares of Common Stock of Magnetek, Inc. (the “Company”) pursuant to the
Company’s Prospectus dated
                       ,
2003 (the “Prospectus”)

 

Dear Sir/Madam:

 

The undersigned hereby
certifies, in connection with the sale of shares of Common Stock of the Company
included in the table of Selling Stockholders in the Prospectus, that the
undersigned has sold the Shares pursuant to the Prospectus and in a manner
described under the caption “Plan of Distribution” in the Prospectus and that
such sale complies with all applicable securities laws, including, without
limitation, the Prospectus delivery requirements of the Securities Act of 1933,
as amended.

 

Selling Stockholder (the beneficial owner):

 

Record Holder (e.g., if held in name of nominee):

 

Restricted Stock Certificate No.(s):

 

Number of Shares Sold:

 

Date of Sale:

 

In the event that you
receive a stock certificate(s) representing more shares of Common Stock than
have been sold by the undersigned, then you should return to the undersigned a
newly issued certificate for such excess shares in the name of the Record
Holder and BEARING A RESTRICTIVE LEGEND. 
Further, you should place a stop transfer on your records with regard to
such certificate.

 

	
  Dated:

  	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
							

 

cc:                                 Investor
Relations

Magnetek, Inc.

10900 Wilshire Boulevard,
Suite 850

Los Angeles

 

14

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